Document:

EX-4.2

 Exhibit 4.2 
  

 
  

SABRA HEALTH CARE LIMITED PARTNERSHIP 

and 
 SABRA CAPITAL CORPORATION,

 as Issuers, 
 SABRA HEALTH
CARE REIT, INC., 
 as Parent and a Guarantor, 

the other GUARANTORS named herein, 

as Guarantors, 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Trustee 
  

 
 EIGHTH
SUPPLEMENTAL INDENTURE 
 Dated as of May 29, 2019 

To the Indenture dated as of May 23, 2013 
  

 
 Establishing a
series of Securities designated 
 4.80% Senior Notes due 2024 
  

 
  

 CROSS-REFERENCE TABLE 

 

					
	 Trust Indenture
Act
Section
	 	 	  	 Indenture
Section

	 310(a)(1)
	 		  	6.9
	 (a)(2)
	 		  	6.9
	 (a)(3)
	 		  	N.A.
	 (a)(4)
	 		  	N.A.
	 (a)(5)
	 		  	6.9
	 (b)
	 		  	6.8; 6.10
	 (c)
	 		  	N.A.
	 311(a)
	 		  	6.13
	 (b)
	 		  	6.13
	 (c)
	 		  	N.A.
	 312(a)
	 		  	7.1; 7.2(a)
	 (b)
	 		  	7.2(b)
	 (c)
	 		  	7.2(c)
	 313(a)
	 		  	7.3
	 (b)(1)
	 		  	7.3
	 (b)(2)
	 		  	7.3
	 (c)
	 		  	7.3
	 (d)
	 		  	7.3
	 314(a)
	 		  	10.4; 10.9
	 (b)
	 		  	N.A.
	 (c)(1)
	 		  	1.8; 1.9; 6.3
	 (c)(2)
	 		  	1.8; 1.9; 6.3
	 (c)(3)
	 		  	N.A.
	 (d)
	 		  	N.A.
	 (e)
	 		  	1.9
	 (f)
	 		  	N.A.
	 315(a)
	 		  	6.1; 6.3
	 (b)
	 		  	1.6; 6.2
	 (c)
	 		  	6.1
	 (d)
	 		  	5.5; 6.1
	 (e)
	 		  	5.11
	 316(a)(last sentence)
	 		  	3.13
	 (a)(1)(A)
	 		  	5.5
	 (a)(1)(B)
	 		  	5.4
	 (a)(2)
	 		  	9.2
	 (b)
	 		  	5.7
	 (c)
	 		  	9.4
	 317(a)(1)
	 		  	5.8
	 (a)(2)
	 		  	5.9
	 (b)
	 		  	6.6
	 318(a)
	 		  	1.5
	 (c)
	 		  	1.5

  
 N.A. means
Not Applicable 
  

	Note:	 This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this Indenture.

  
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 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE 1
	 	APPLICATION OF SUPPLEMENTAL INDENTURE AND CREATION OF THE NOTES	  	 	1	 
			
	 ARTICLE 2 
	 	DEFINITIONS AND OTHER TERMS OF GENERAL APPLICATION	  	 	2	 
			
	 ARTICLE 3
	 	THE NOTES	  	 	21	 
			
	 ARTICLE 4 
	 	DISCHARGE OF INDENTURE	  	 	23	 
			
	 ARTICLE 5
	 	DEFAULT AND REMEDIES	  	 	24	 
			
	 ARTICLE 6 
	 	THE TRUSTEE	  	 	28	 
			
	 ARTICLE 7
	 	HOLDERS’ LISTS AND REPORTS BY THE TRUSTEE	  	 	29	 
			
	 ARTICLE 8 
	 	GUARANTY	  	 	29	 
			
	 ARTICLE 9
	 	AMENDMENTS, SUPPLEMENTS AND WAIVERS	  	 	32	 
			
	 ARTICLE 10
	 	COVENANTS	  	 	34	 
			
	 ARTICLE 11
	 	REDEMPTION	  	 	38	 
			
	 ARTICLE 12
	 	SINKING FUNDS	  	 	40	 
			
	 ARTICLE 13
	 	DEFEASANCE	  	 	40	 
			
	 ARTICLE 14
	 	SUCCESSOR CORPORATION	  	 	43	 
			
	 ARTICLE 15
	 	CO-ISSUERS	  	 	45	 
			
	 ARTICLE 16
	 	ADDITIONAL TERMS OF THIS SUPPLEMENTAL INDENTURE	  	 	45	 

  

									
	 SIGNATURES
	  		  	 	S-1	 
				
	Exhibit A	  	–	  	Form of Note	  	 	A-1	 
	Exhibit B	  	–	  	Form of Notation of Guaranty	  	 	B-1	 

  

	Note:	 This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture.

  
 i 

 EIGHTH SUPPLEMENTAL INDENTURE, dated as of May 29, 2019, (this “Supplemental
Indenture”) among Sabra Health Care Limited Partnership, a Delaware limited partnership (“Operating Partnership”), and Sabra Capital Corporation, a Delaware corporation (“Sabra Capital” and, together with
the Operating Partnership, the “Issuers”), Sabra Health Care REIT, Inc., a Maryland corporation (the “Parent”), as Guarantor, each of the other Guarantors named herein, as Guarantors, and Wells Fargo Bank, National
Association, a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”) to the Indenture, dated as of May 23, 2013, between the Issuers, the Parent, and the
Trustee (the “Base Indenture”), as supplemented by this Supplemental Indenture (collectively, this “Indenture”). 

RECITALS OF THE ISSUERS 

WHEREAS, the Issuers, the Parent and the Trustee have heretofore executed and delivered the Base Indenture, providing for the issuance from
time to time of the Issuers’ unsecured debentures, notes or other evidences of indebtedness (herein and therein called the “Securities”), to be issued in one or more series as provided in the Base Indenture; 

WHEREAS, Section 9.1(e) of the Base Indenture permits the Issuers and the Trustee to enter into a supplemental indenture to the Base
Indenture to establish the form and terms of any series of Securities; 
 WHEREAS, Section 2.1 of the Base Indenture permits the form
of Securities of any series to be established in a supplemental indenture to the Base Indenture; 
 WHEREAS, Section 3.1 of the Base
Indenture permits certain terms of any series of Securities to be established pursuant to a supplemental indenture to the Base Indenture; 

WHEREAS, pursuant to Sections 2.1 and 3.1 of the Base Indenture, the Issuers desire to provide for the establishment of a new series of
Securities in an initial aggregate principal amount of $300,000,000 to be designated the “4.80% Senior Notes due 2024” (hereinafter called the “Notes”) under the Base Indenture, the form and substance of such Notes and the
terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture; and 
 WHEREAS,
all things necessary to make this Supplemental Indenture a valid agreement of the Issuers and the Guarantors, in accordance with its terms, have been done; 

NOW, THEREFORE, for and in consideration of the foregoing and the purchase of the Notes established by this Supplemental Indenture by the
Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all such Holders, as follows: 
 ARTICLE 1 

APPLICATION OF SUPPLEMENTAL INDENTURE 

AND CREATION OF THE NOTES 

SECTION 1.01. Application of this Supplemental Indenture. 

This Supplemental Indenture constitutes a part of the Base Indenture (the provisions of which, as modified by this Supplemental Indenture,
shall apply to the Notes) in respect of the Notes. Notwithstanding any other provision of this Supplemental Indenture, all provisions of this Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes and any such
provisions shall not be deemed to apply to any other series of Securities issued under this Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes. All Initial Notes
and Additional Notes, if any, will be treated as a single class for all purposes of this Indenture, including waivers, amendments, redemptions and offers to purchase. 

  
 1 

 SECTION 1.02. Effect of Supplemental Indenture. 

(a) With respect to the Notes only, the Base Indenture shall be supplemented pursuant to Section 9.1(e) thereof to establish the terms of
the Notes as set forth in this Supplemental Indenture. 
 (b) To the extent that the provisions of this Supplemental Indenture conflict with
any provision of the Base Indenture, the provisions of this Supplemental Indenture shall govern and be controlling. 
 SECTION 1.03.
The Trustee. 
 The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuers and the Guarantors. 

ARTICLE 2 
 DEFINITIONS
AND OTHER TERMS OF GENERAL APPLICATION 
 SECTION 2.01. Certain Terms Defined in the Indenture. 

For all purposes of this Supplemental Indenture, the capitalized terms used herein (i) which are defined or amended in this Article 2 have
the respective meanings assigned hereto in this Article 2 and (ii) which are defined in the Base Indenture (and which are not defined or amended in this Article 2) have the respective meanings assigned thereto in the Base Indenture. 

SECTION 2.02. Definitions. 

(a) The first paragraph of Section 1.1 of the Base Indenture shall be deleted in its entirety and shall not be applicable to the Notes.

 (b) Section 1.1 of the Base Indenture shall be amended to add new definitions thereto in appropriate alphabetical sequence, as
follows: 
 “2021 Notes” means the Issuers’ $500.0 million initial aggregate principal amount of 5.50% senior
unsecured notes due 2021. 
 “2023 Notes” means the Issuers’ $200.0 million initial aggregate principal amount of
5.375% senior unsecured notes due 2023. 
 “Acquired Indebtedness” means Indebtedness of a Person existing at the time such
Person becomes a Subsidiary or that is assumed in connection with an Asset Acquisition from such Person by a Subsidiary and not incurred by such Person in connection with, or in anticipation of, such Person becoming a Subsidiary or such Asset
Acquisition; provided, however, that Indebtedness of such Person that is redeemed, defeased, retired or otherwise repaid at the time of or immediately upon consummation of the transactions by which such Person becomes a Subsidiary or
such Asset Acquisition shall not be Acquired Indebtedness. 
 “Adjusted Consolidated Net Income” means, for any period, the
aggregate net income (or loss) (before giving effect to cash dividends on preferred stock of the Parent or charges resulting from the redemption of preferred stock of the Parent) of the Parent and its Subsidiaries for such period determined on a
consolidated basis in conformity with GAAP; provided, however, that the following items shall be excluded in computing Adjusted Consolidated Net Income, without duplication: 

(1) the net income of any Person, other than the Parent or a Subsidiary, except to the extent of the amount of dividends or
other distributions actually paid in cash (or to the extent converted into cash) or Temporary Cash Investments to the Parent or any of its Subsidiaries by such Person during such period; 

  
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 (2) the net income of any Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by such Subsidiary of such net income is not at the time permitted by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to such Subsidiary, unless such restrictions with respect to the declaration and payment of dividends or distributions have been properly waived for such entire period; provided, however, that Adjusted Consolidated Net
Income will be increased by the amount of dividends or other distributions or other payments made in cash (or to the extent converted into cash) or Temporary Cash Investments to the Parent or a Subsidiary thereof in respect of such period, to the
extent not already included therein; 
 (3) the cumulative effect of non-cash charges
resulting from a change in accounting principles; and 
 (4) any after-tax gains or
losses attributable to Asset Sales. 
 “Adjusted Total Assets” means, for any Person, the sum of: 

(1) Total Assets for such Person as of the end of the fiscal quarter preceding the Transaction Date; and 

(2) any increase in Total Assets following the end of such quarter determined on a pro forma basis, including any pro
forma increase in Total Assets resulting from the application of the proceeds of any additional Indebtedness. 
 “Adjusted
Treasury Rate” means, with respect to any redemption date, (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated
“H.15” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining term of the Notes being redeemed (assuming for this purpose, such
Notes matured on the Par Call Date), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a
straight line basis, rounding to the nearest month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per year equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date, in each case calculated by the Issuers on the third Business Day
immediately preceding the redemption date, plus 0.40%. 
 “Asset Acquisition” means: 

(1) an investment by the Parent or any of its Subsidiaries in any other Person pursuant to which such Person shall become a
Subsidiary or shall be merged into or consolidated with the Parent or any of its Subsidiaries; provided, however, that such Person’s primary business is related, ancillary, incidental or complementary to the businesses of the Issuers or
any of their Subsidiaries on the date of such investment; or 
 (2) an acquisition by the Parent or any of its Subsidiaries
from any other Person of assets that constitute substantially all of a division or line of business, or one or more properties, of such Person; provided, however, that the assets and properties acquired are related, ancillary, incidental or
complementary to the businesses of the Issuers or any of their Subsidiaries on the date of such acquisition. 
 “Asset
Disposition” means the sale or other disposition by the Parent or any of its Subsidiaries, other than to the Parent, the Issuers or another Subsidiary, of: 

(1) all or substantially all of the Capital Stock of any Subsidiary of Parent; or 

  
 3 

 (2) all or substantially all of the assets that constitute a division or
line of business, or one or more properties, of the Parent or any of its Subsidiaries. 
 “Asset Sale” means any sale,
transfer or other disposition, including by way of merger, consolidation or Sale and Leaseback Transaction, in one transaction or a series of related transactions by the Parent or any of its Subsidiaries to any Person other than the Parent, the
Issuers or any of their Subsidiaries of: 
 (1) all or any of the Capital Stock of any Subsidiary of the Parent; 

(2) all or substantially all of the assets that constitute a division or line of business of the Parent or any of its
Subsidiaries; or 
 (3) any property and assets of the Parent or any of its Subsidiaries outside the ordinary course of
business of the Parent or such Subsidiary and, in each case, that is not governed by the provisions of Section 14.1; 
 provided, however, that
“Asset Sale” shall not include: 
 (1) the lease or sublease of any Real Estate Asset; 

(2) sales, leases, assignments, licenses, sublicenses, subleases or other dispositions of inventory, receivables and other
current assets; 
 (3) the sale, conveyance, transfer, lease, disposition or other transfer of all or substantially all of
the assets of the Parent as permitted under Section 14.1; 
 (4) the license or sublicense of intellectual property or
other general intangibles; 
 (5) the issuance of Capital Stock by a Subsidiary in which the percentage interest (direct and
indirect) in the Capital Stock of such Person owned by the Parent after giving effect to such issuance, is at least equal to the percentage interest prior to such issuance; 

(6) any issuance of Capital Stock (other than Disqualified Stock) by the Operating Partnership in order to acquire assets used
or useful in a Permitted Business; 
 (7) the surrender or waiver of contract rights or settlement, release or surrender of a
contract, tort or other litigation claim in the ordinary course of business; 
 (8) sales, transfers or other dispositions of
assets with a fair market value not in excess of $50,000,000 in any transaction or series of related transactions; 
 (9)
sales or other dispositions of cash or Temporary Cash Investments; 
 (10) the creation, granting, perfection or realization
of any Lien permitted under this Indenture; 
 (11) the lease, assignment or sublease of property in the ordinary course of
business so long as the same does not materially interfere with the business of the Parent and its Subsidiaries, taken as a whole; and 

(12) sales, exchanges, transfers or other dispositions of damaged, worn-out or obsolete
or otherwise unsuitable or unnecessary equipment or assets that, in the Parent’s reasonable judgment, are no longer used or useful in the business of the Parent or its Subsidiaries and any sale or disposition of property in connection with
scheduled turnarounds, maintenance and equipment and facility updates. 

  
 4 

 “Attributable Debt” in respect of a Sale and Leaseback Transaction means,
at the time of determination, the present value of the total obligations of the lessee for net rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction. For purposes hereof such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such Sale and Leaseback Transaction, determined by lessee in good faith on a basis consistent with comparable determinations of Capitalized Lease Obligations under GAAP;
provided, however, that if such Sale and Leaseback Transaction results in a Capitalized Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capitalized Lease
Obligations.” 
 “Bank Agent” means Bank of America, N.A. in its capacity as administrative agent under the Credit
Agreement, and any successor thereto in such capacity. 
 “Bankruptcy Law” means Title 11 of the United States Code, as
amended, or any insolvency or other similar Federal or state law for the relief of debtors. 
 “Capital Stock” means, with
respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting), including partnership or limited liability company interests,
whether general or limited, in the equity of such Person, whether outstanding on the Closing Date or issued thereafter, including all Common Stock and Preferred Stock. 

“Capitalized Lease” means, as applied to any Person, any lease of any property, whether real, personal or mixed, of which the
discounted present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of such Person. For clarity purposes, GAAP for purposes of this definition shall be deemed GAAP
as in effect on the date of this Indenture. 
 “Capitalized Lease Obligations” means, at the time any determination is to
be made, the amount of the liability in respect of a Capitalized Lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP. 

“Closing Date” means May 29, 2019. 

“Common Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) that have no preference on liquidation or with respect to distributions over any other class of Capital Stock, including partnership interests, whether general or
limited, of such Person’s equity, whether outstanding on the Closing Date or issued thereafter, including all series and classes of common stock. 

“Common Units” means the common units of the Operating Partnership, as defined in the Operating Partnership’s limited
partnership agreement. 
 “Comparable Treasury Issue” means the United States Treasury security selected by the Quotation
Agent as having a maturity comparable to the remaining term of the Notes being redeemed (assuming, for this purpose, that the Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of a maturity most nearly equal to the remaining term of the Notes being redeemed (assuming for this purpose, such Notes matured on the Par Call Date). 

“Comparable Treasury Price” means, with respect to any Redemption Date, if clause (2) of the Adjusted Treasury Rate
definition is applicable, the average of three, or such lesser number as is obtained by the Issuers, Reference Treasury Dealer Quotations for such Redemption Date. 

  
 5 

 “Consolidated EBITDA” means, for any period, Adjusted Consolidated Net
Income for such period plus, to the extent such amount was deducted in calculating such Adjusted Consolidated Net Income (without duplication): 

(1) Consolidated Interest Expense; 

(2) provision for taxes based on income or profits or capital gains, including federal, state, provincial, franchise, excise
and similar taxes and foreign withholding taxes; 
 (3) depreciation and amortization (including without limitation
amortization or impairment write-offs of goodwill and other intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period); 

(4) all extraordinary or non-recurring gain or loss or expense as determined reasonably
and in good faith by Parent, together with any related provision for taxes; 
 (5) all
non-cash items reducing Adjusted Consolidated Net Income (other than items that will require cash payments and for which an accrual or reserve is, or is required by GAAP to be, made), including (i) stock
based compensation expense and (ii) any impairment charge or asset write-offs or write-downs related to intangible assets (including goodwill) and long-lived assets pursuant to GAAP, less all non-cash
items increasing Adjusted Consolidated Net Income, all as determined on a consolidated basis for the Parent and its Subsidiaries in conformity with GAAP; 

(6) proceeds from any business interruption insurance; 

(7) non-controlling interests; 

(8) income or expenses attributable to transactions involving derivative instruments that do not qualify for hedge accounting
in accordance with GAAP; and 
 (9) gains or losses on disposition of depreciable real estate investments, property valuation
losses and impairment charges. 
 Notwithstanding the preceding, the income taxes of, and the depreciation and amortization and other non-cash items of, a Subsidiary shall be added (or subtracted) to Adjusted Consolidated Net Income to compute Consolidated EBITDA only to the extent (and in the same proportion) that net income of such Subsidiary
was included in calculating Adjusted Consolidated Net Income. 
 “Consolidated Interest Expense” means, for any period, the
aggregate amount of interest expense, less the aggregate amount of interest income for such period, in respect of Indebtedness of the Parent and the Subsidiaries during such period, all as determined on a consolidated basis in conformity with GAAP
including (without duplication): 
 (1) the interest portion of any deferred payment obligations; 

(2) all commissions, discounts and other fees and expenses owed with respect to letters of credit and bankers’ acceptance
financing; 
 (3) the net cash costs associated with Interest Rate Agreements and Indebtedness that is Guaranteed or secured
by assets of the Parent or any of its Subsidiaries; and 
 (4) all but the principal component of rentals in respect of
Capitalized Lease Obligations paid, accrued or scheduled to be paid or to be accrued by the Parent and its Subsidiaries; 

  
 6 

 excluding, to the extent included in interest expense above, (A) the amount of such interest
expense of any Subsidiary if the net income of such Subsidiary is excluded in the calculation of Adjusted Consolidated Net Income pursuant to clause (2) of the definition thereof (but only in the same proportion as the net income of such
Subsidiary is excluded from the calculation of Adjusted Consolidated Net Income pursuant to clause (2) of the definition thereof), as determined on a consolidated basis in conformity with GAAP and (B) (i) accretion of accrual of discounted
liabilities not constituting Indebtedness, (ii) any expense resulting from the discounting of any outstanding Indebtedness in connection with the application of purchase accounting in connection with any acquisition, (iii) amortization of
deferred financing fees, debt issuance costs, commissions, fees and expenses and (iv) non-cash costs associated with the Interest Rate Agreements and Currency Agreements. 

“Credit Agreement” means the Fourth Amended and Restated Credit Agreement effective August 17, 2017 (as amended by the
First Amendment to Credit Agreement, dated as of September 30, 2018, and the Second Amendment to Credit Agreement, dated as of May 10, 2019), by and among the Operating Partnership and Sabra Canadian Holdings, LLC, together, the borrowers,
Parent and the other guarantors party thereto, the lenders party thereto in their capacities as lenders thereunder and Bank of America, N.A., as administrative agent, together with the related documents thereto (including any guarantee agreements
and security documents). 
 “Credit Facility” means (i) prior to the repayment in full, whether at maturity or
earlier, of all of the outstanding 2023 Notes, one or more credit or debt facilities (including any credit or debt facilities provided under the Credit Agreement), financings, commercial paper facilities, note purchase agreements or other debt
instruments, indentures or agreements, providing for revolving credit loans, term loans, notes, securities, letters of credit or other debt obligations for borrowed money and (ii) following the repayment in full, whether at maturity or earlier,
of all of the outstanding 2023 Notes, one or more unsecured credit or debt facilities (including any credit or debt facilities provided under the Credit Agreement), financings, commercial paper facilities, note purchase agreements or other debt
instruments, indentures or agreements, providing for unsecured revolving credit loans, term loans, notes, securities, letters of credit or other debt obligations for borrowed money. 

“Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement.

 “Default” means any event that is, or after notice or passage of time or both would be, an Event of Default. 

“Disqualified Stock” means any class or series of Capital Stock of any Person that by its terms or otherwise is: 

(1) required to be redeemed on or prior to the date that is 91 days after the Stated Maturity of the Notes; 

(2) redeemable at the option of the holder of such class or series of Capital Stock, at any time on or prior to the date that
is 91 days after the Stated Maturity of the Notes (other than into shares of Capital Stock that is not Disqualified Stock); or 

(3) convertible into or exchangeable for Capital Stock referred to in clause (1) or (2) above or Indebtedness having
a scheduled maturity on or prior to the date that is 91 days after the Stated Maturity of the Notes. 
 Disqualified Stock shall not include Capital Stock
which is issued to any plan for the benefit of employees of the Parent or its Subsidiaries or by any such plan to such employees solely because it may be required to be repurchased by the Parent or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations. Disqualified Stock shall not include Common Units. 
 “fair market value” means the
price that would be paid in an arm’s-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy. For purposes of
determining compliance with Article 10 of this Indenture, any determination that the fair 

  
 7 

 
market value of assets other than cash or Temporary Cash Investments is equal to or greater than $100,000,000 shall be as determined in good faith by the Board of Directors of the Parent, whose
determination shall be conclusive if evidenced by a Board Resolution, and otherwise by the principal financial officer of the Parent acting in good faith, each of whose determination shall be conclusive. 

“Four Quarter Period” means, for purposes of calculating the Interest Coverage Ratio with respect to any Transaction Date,
the then most recent four fiscal quarters prior to such Transaction Date for which reports have been filed with the SEC or provided to the Trustee pursuant to Section 10.9 (or if no such reports have yet been required to be filed with the SEC,
for which internal financial statements are available). 
 “GAAP” means generally accepted accounting principles in the
United States of America as in effect as of the date of any required calculation or determination, including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession. Except as otherwise specifically provided
in this Indenture, all ratios and computations contained or referred to in this Indenture shall be computed in conformity with GAAP applied on a consistent basis. For clarity purposes, in determining whether a lease is a Capitalized Lease or an
operating lease and whether interest expense exists, such determination shall be made in accordance with GAAP as in effect on the date of this Indenture. 

“Guaranty” means a guaranty by each Guarantor for payment of the Notes by such Guarantor. 

“Incur” means, with respect to any Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become liable with
respect to, or become responsible for, the payment of, contingently or otherwise, such Indebtedness, including an “Incurrence” of Acquired Indebtedness; provided, however, that neither the accrual of interest, the payment of
interest on any Indebtedness in the form of additional Indebtedness with the same terms, nor the accretion of original issue discount shall be considered an Incurrence of Indebtedness. 

“Indebtedness” means, with respect to any Person at any date of determination (without duplication): 

(1) all indebtedness of such Person for borrowed money; 

(2) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 

(3) the face amount of letters of credit or other similar instruments (excluding obligations with respect to letters of credit
(including trade letters of credit) securing obligations (other than obligations described in (1) or (2) above or (5), (6) or (7) below) entered into in the ordinary course of business of such Person to the extent such letters of credit
are not drawn upon or, if drawn upon, to the extent such drawing is reimbursed no later than the fifth Business Day following receipt by such Person of a demand for reimbursement); 

(4) all unconditional obligations of such Person to pay the deferred and unpaid purchase price of property or services, which
purchase price is due more than six months after the date of placing such property in service or taking delivery and title thereto or the completion of such services, except Trade Payables; 

(5) all Capitalized Lease Obligations and Attributable Debt; 

(6) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is
assumed by such Person; provided, however, that the amount of such Indebtedness shall be the lesser of (A) the fair market value of such asset at that date of determination and (B) the amount of such Indebtedness; 

  
 8 

 (7) all Indebtedness of other Persons Guaranteed by such Person to the
extent such Indebtedness is Guaranteed by such Person; and 
 (8) to the extent not otherwise included in this definition or
the definition of Consolidated Interest Expense, obligations under Currency Agreements and Interest Rate Agreements. 
 The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations of the type described above and, with respect to obligations under any Guarantee, the maximum liability upon the occurrence of the
contingency giving rise to the obligation; provided, however, that: 
 (1) the amount outstanding at any time of any
Indebtedness issued with original issue discount shall be deemed to be the face amount with respect to such Indebtedness less the remaining unamortized portion of the original issue discount of such Indebtedness at the date of determination in
conformity with GAAP; 
 (2) Indebtedness shall not include any liability for foreign, federal, state, local or other taxes;

 (3) for the avoidance of doubt, Indebtedness of Parent or any Subsidiary shall not include any liability required to be
recognized as a result of variable interest accounting that Parent or such Subsidiary is not otherwise legally liable for; 

(4) Indebtedness shall not include any indemnification, earnouts, adjustment or holdback of purchase price or similar
obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets or a Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business,
assets or Subsidiary for the purpose of financing such acquisition; and 
 (5) Indebtedness shall not include contingent
obligations under performance bonds, performance guarantees, surety bonds, appeal bonds or similar obligations incurred in the ordinary course of business and consistent with past practices. 

“Interest Coverage Ratio” means, on any Transaction Date, the ratio of: 

 

	 	(x)	 the aggregate amount of Consolidated EBITDA for the then applicable Four Quarter Period to

  

	 	(y)	 the aggregate Consolidated Interest Expense during such Four Quarter Period. 

In making the foregoing calculation, 

(1) pro forma effect shall be given to any Indebtedness Incurred or repaid (other than in connection with an Asset
Acquisition or Asset Disposition) during the period (“Reference Period”) commencing on the first day of the Four Quarter Period and ending on the Transaction Date (other than Indebtedness Incurred or repaid under a revolving credit
or similar arrangement), in each case as if such Indebtedness had been Incurred or repaid on the first day of such Reference Period; 

(2) Consolidated Interest Expense attributable to interest on any Indebtedness (whether existing or being Incurred) computed on
a pro forma basis and bearing a floating interest rate shall be computed as if the rate in effect on the Transaction Date (taking into account any Interest Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a
remaining term in excess of 12 months or, if shorter, at least equal to the remaining term of such Indebtedness) had been the applicable rate for the entire period; 

  
 9 

 (3) pro forma effect shall be given to Asset Dispositions, Asset
Acquisitions and Permitted Mortgage Investments (including giving pro forma effect to the application of proceeds of any Asset Disposition and any Indebtedness Incurred or repaid in connection with any such Asset Acquisitions or Asset
Dispositions) that occur during such Reference Period or subsequent to the end of the related Four Quarter Period as if they had occurred and such proceeds had been applied on the first day of such Reference Period and after giving effect to Pro
Forma Cost Savings; 
 (4) pro forma effect shall be given to asset dispositions and asset acquisitions (including
giving pro forma effect to (i) the application of proceeds of any asset disposition and any Indebtedness Incurred or repaid in connection with any such asset acquisitions or asset dispositions, (ii) expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Exchange Act and (iii) Pro Forma Cost Savings) that have been made by any Person that has become a Subsidiary or has been merged with or into
the Parent or any of its Subsidiaries during such Reference Period but subsequent to the end of the related Four Quarter Period and that would have constituted asset dispositions or asset acquisitions during such Reference Period but subsequent to
the end of the related Four Quarter Period had such transactions occurred when such Person was a Subsidiary as if such asset dispositions or asset acquisitions were Asset Dispositions or Asset Acquisitions and had occurred on the first day of such
Reference Period; 
 (5) the Consolidated Interest Expense attributable to discontinued operations, as determined in
accordance with GAAP, shall be excluded, but only to the extent that the obligations giving rise to such Consolidated Interest Expense shall not be obligations of the specified Person or any of its Subsidiaries following the Transaction Date; 

(6) interest on Indebtedness that may optionally be determined at an interest rate based on a factor of a prime or similar
rate, a Eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if not, then based upon such operational rate chosen as the Parent may designate; 

(7) interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based
on the average daily balance of such Indebtedness during the applicable period except as set forth in clause (1) of this definition; and 

(8) interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a
responsible financial or accounting officer of the Parent to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP. 

provided, however, that to the extent that clauses (3) and (4) of this paragraph requires that pro forma effect be given to an Asset
Acquisition, Asset Disposition, Permitted Mortgage Investment, asset acquisition or asset disposition, as the case may be, such pro forma calculation shall be based upon the four full fiscal quarters immediately preceding the Transaction Date
of the Person, or division or line of business, or one or more properties, of the Person that is acquired or disposed of to the extent that such financial information is available or otherwise a reasonable estimate thereof is available. 

“Interest Rate Agreement” means any interest rate protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement, option or future contract or other similar agreement or arrangement with respect to interest rates. 

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale
or other title retention agreement or lease in the nature thereof or any agreement to give any security interest). 

“Moody’s” means Moody’s Investors Service, Inc. and its successors. 

  
 10 

 “Notes” means, collectively, the Issuers’ 4.80% Senior Notes due 2024
issued in accordance with Section 3.3 (whether issued on the Closing Date, issued as Additional Notes or otherwise issued after the Closing Date) treated as a single class of securities under this Indenture. 

“Par Call Date” means May 1, 2024. 

“Permitted Business” means any business activity (including Permitted Mortgage Investments) in which the Parent and its
Subsidiaries are engaged or propose to be engaged in (as described in the Prospectus Supplement) on the Closing Date, any business activity related to properties customarily constituting assets of a healthcare REIT, or any business reasonably
related, ancillary or complementary thereto, or reasonable expansions or extensions thereof. 
 “Permitted Mortgage
Investment” means any investment in secured notes, mortgage, deeds of trust, collateralized mortgage obligations, commercial mortgage-backed securities, other secured debt securities, secured debt derivative or other secured debt
instruments, so long as such investment relates directly or indirectly to real property that constitutes or is used as a skilled nursing home center, hospital, assisted living facility, medical office or other property customarily constituting an
asset of a real estate investment trust specializing in healthcare or senior housing property. 
 “Preferred Stock” means,
with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) that have a preference on liquidation or with respect to
distributions over any other class of Capital Stock, including preferred partnership interests, whether general or limited, or such Person’s preferred or preference stock, whether outstanding on the Closing Date or issued thereafter, including
all series and classes of such preferred or preference stock. 
 “principal” means, with respect to the Notes, the
principal of and premium, if any, on the Notes. 
 “Pro Forma Cost Savings” means, with respect to any period, the
reductions in costs (including such reductions resulting from employee terminations, facilities consolidations and closings, standardization of employee benefits and compensation policies, consolidation of property, casualty and other insurance
coverage and policies, standardization of sales and distribution methods, reductions in taxes other than income taxes) that occurred during such period that are (1) directly attributable to an asset acquisition or (2) implemented and that
are supportable and quantifiable by the underlying records of such business, as if, in the case of each of clauses (1) and (2), all such reductions in costs had been effected as of the beginning of such period, decreased by any incremental
expenses incurred or to be incurred during such period in order to achieve such reduction in costs, all such costs to be determined in good faith by the chief financial officer of the Parent. 

“Prospectus Supplement” means the Prospectus Supplement dated May 21, 2019 pursuant to which the Notes issued on the
Closing Date were offered to investors. 
 “Quotation Agent” means the Reference Treasury Dealer selected by the Issuers.

 “Real Estate Assets” of a Person means, as of any date, the tangible and intangible real estate assets (including
investments in direct financing leases) of such Person and its Subsidiaries on such date, on a consolidated basis determined in accordance with GAAP. 

“Real Estate Revenues” means, with respect to any Real Estate Asset of Parent and its Subsidiaries owned as of the closing of
the Separation and the REIT Conversion Merger, the annualized cash rental revenues generated by such Real Estate Asset during the three months ended March 31, 2013. 

“Record Date” means the applicable record date specified in the Notes. 

“Reference Treasury Dealer” means each of BofA Securities, Inc. and its successors and assigns, J.P. Morgan Securities LLC
and its successors and assigns, and Wells Fargo Securities, LLC and its successors and assigns. 

  
 11 

 “Reference Treasury Dealer Quotations” means with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the Issuers, of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, quoted in writing to the Trustee by
such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day immediately preceding such Redemption Date. 

“REIT Conversion Merger” means the merger of Sun Healthcare Group, Inc. with and into the Parent, with the Parent surviving
the merger and holders of Sun Healthcare Group, Inc. common stock receiving shares of Parent common stock in exchange for shares of Sun Healthcare Group, Inc. common stock. 

“S&P” means Standard & Poor’s Ratings Services and its successors. 

“Sale and Leaseback Transaction” means any direct or indirect arrangement with any Person or to which any such Person is a
party, providing for the leasing to the Parent or any Subsidiary of any property, whether owned by the Parent or any such Subsidiary at the Closing Date or later acquired, which has been or is to be sold or transferred by the Parent or any such
Subsidiary to such Person or any other Person from whom funds have been or are to be advanced by such Person on the security of such property. 

“SEC” means the U.S. Securities and Exchange Commission. 

“Secured Indebtedness” means any Indebtedness secured by a Lien upon the property of the Parent or any of its subsidiaries;
provided that in no event shall the obligations under the Credit Agreement constitute “Secured Indebtedness” as a result of any security interest granted to the Bank Agent, any issuer of a letter of credit under the Credit Agreement
or any swing line lender under the Credit Agreement, solely in any cash collateral or any account or other property, including proceeds thereof, established for the purpose of securing obligations in respect of letter of credit and/or swing line
loans under the Credit Agreement, exchange rate fluctuations or otherwise to the extent required pursuant to Section 2.17 of the Credit Agreement as in effect on the Closing Date. 

“Securities Act” means the U.S. Securities Act of 1933, as amended, or any successor statute or statutes thereto. 

“Separation” means the distribution by Sun Healthcare Group, Inc. to the holders of Sun Healthcare Group, Inc. common stock
on a pro rata basis all of the outstanding shares of common stock of SHG Services, Inc. (which was renamed Sun Healthcare Group, Inc. in connection with such distribution), together with an additional cash distribution. 

“Significant Subsidiary,” with respect to any Person, means any subsidiary of such Person that satisfies the criteria for a
“significant subsidiary” set forth in Rule 1-02(w) of Regulation S-X under the Exchange Act. 

“Subsidiary Guarantors” means each Subsidiary of the Issuers that is required to become a Guarantor by the terms of this
Indenture, in each case, until such Person is released from its Subsidiary Guaranty. 
 “Subsidiary Guaranty” means a
Guaranty of the Notes by any Subsidiary of the Issuers. 
 “Temporary Cash Investment” means any of the following: 

(1) United States dollars; 

(2) direct obligations of the United States of America or any agency thereof or obligations fully and unconditionally
guaranteed by the United States of America or any agency thereof; 

  
 12 

 (3) time deposits accounts, term deposit accounts, time deposits,
bankers’ acceptances, certificates of deposit, Eurodollar time deposits and money market deposits maturing within twelve months or less of the date of acquisition thereof issued by a bank or trust company which is organized under the laws of
the United States of America, any state thereof, and which bank or trust company has capital, surplus and undivided profits aggregating in excess of $500,000,000 and has outstanding debt which is rated “A” (or such similar equivalent
rating) or higher by at least one nationally recognized statistical rating organization (as defined in Rule 436 under the Securities Act) or any money-market fund sponsored by a registered broker dealer or mutual fund distributor; 

(4) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in
clauses (2) and (3) above entered into with a bank meeting the qualifications described in clause (3) above; 

(5) commercial paper, maturing not more than six months after the date of acquisition, issued by a corporation (other than an
Affiliate of the Parent) organized and in existence under the laws of the United States of America, any state of the United States of America with a rating at the time as of which any investment therein is made of
“P-2” (or higher) according to Moody’s or “A-2” (or higher) according to S&P; 

(6) securities with maturities of six months or less from the date of acquisition issued or fully and unconditionally
guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or Moody’s; and 

(7) any fund investing substantially all of its assets in investments that constitute Temporary Cash Investments of the kinds
described in clauses (1) through (6) of this definition. 
 “Total Assets” means, for any Person as of any date, the
sum of (i) in the case of any Real Estate Assets that were owned as of the closing of the Separation and REIT Conversion Merger, the Real Estate Revenues specified for such Real Estate Assets, divided by 0.095, plus (ii) the cost (original
cost plus capital improvements before depreciation and amortization) of all Real Estate Assets acquired after the closing of the Separation and REIT Conversion Merger that are then owned by such Person or any of its Subsidiaries and (iii) the
book value of all assets (excluding Real Estate Assets and non-lease intangibles) of such Person and its Subsidiaries on a consolidated basis determined in accordance with GAAP. 

“Total Unencumbered Assets” means, for any Person as of any date, the Total Assets of such Person and its Subsidiaries as of
such date, that do not secure any portion of Secured Indebtedness, on a consolidated basis determined in accordance with GAAP; provided, however, that in determining Total Unencumbered Assets as a percentage of the outstanding
Unsecured Indebtedness for purposes of the covenant set forth in Section 10.7, all investments by the Parent and its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability companies
and other unconsolidated entities shall be excluded from Total Unencumbered Assets to the extent that such investments would have otherwise been included. 

“Trade Payables” means, with respect to any Person, any accounts payable or any other indebtedness or monetary obligation to
trade creditors created, assumed or Guaranteed by such Person or any of its Subsidiaries arising in the ordinary course of business in connection with the acquisition of goods or services. 

“Transaction Date” means, with respect to the Incurrence of any Indebtedness by the Parent or any of its Subsidiaries, the
date such Indebtedness is to be Incurred and, with respect to any Restricted Payment, the date such Restricted Payment is to be made. 

“Unsecured Indebtedness” means any Indebtedness of the Parent or any of its Subsidiaries that is not Secured Indebtedness.

 “U.S. Legal Tender” means such coin or currency of the United States of America that at the time of payment shall be
legal tender for the payment of public and private debts. 

  
 13 

 “Wholly Owned” means, with respect to any Subsidiary of any Person, the
ownership of all of the outstanding Capital Stock of such Subsidiary (other than any director’s qualifying shares or Investments by individuals mandated by applicable law) by such Person or one or more Wholly Owned Subsidiaries of such Person.

 (c) Section 1.1 of the Base Indenture shall be amended so that the following definitions in the Base Indenture shall be deleted in
their entirety and replaced with the following: 
 “Act” when used with respect to any Holders has the meaning specified in
Section 1.10. 
 “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise. 
 “Agent” means any Security Registrar or Paying Agent. 

“Business Day” means a day other than a Saturday, Sunday or any other day on which banking institutions in New York City are
authorized or required by law, regulation or executive order to close. 
 “Covenant Defeasance” has the meaning specified
in Section 13.1. 
 “Depository” means The Depository Trust Company, New York, New York, or a successor thereto
registered under the Exchange Act or other applicable statute or regulation. 
 “Guarantee” means any obligation,
contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality of the foregoing, any obligation of such Person: 

(1) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person
(whether arising by virtue of partnership arrangements, or by agreements to keep-well or to maintain financial statement conditions or otherwise); or 

(2) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part); 
 provided, however, that the term “Guarantee” shall not
include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. 

“Guarantor” means the Parent and each Subsidiary Guarantor. 

“Holder” means any registered holder on the books of the Security Registrar, from time to time, of the Notes. 

“Interest Payment Date” means the Stated Maturity of an installment of interest on the Notes. 

“Legal Defeasance” has the meaning specified in Section 13.1. 

“Officer’s Certificate” means a certificate signed by an Officer of the Parent, each of the Issuers and any Subsidiary
Guarantor, as applicable. 
 “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. The counsel may be an employee of, or counsel to, the Parent, the Issuers, a Guarantor or the Trustee. 

  
 14 

 “Outstanding” or “outstanding,” when used with respect to
the Notes, shall be construed consistent with Sections 3.12 and 3.13. 
 “Redemption Date,” when used with respect to any
Note to be redeemed, means the date fixed for such redemption pursuant to this Indenture and the Notes. 
 “Redemption
Price,” when used with respect to any Note to be redeemed, means the price fixed for such redemption, payable in immediately available funds, pursuant to this Indenture and the Notes. 

“Responsible Officer” means, when used with respect to the Trustee, any officer in the Corporate Trust Office of the Trustee
to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity with the particular subject and shall also mean any officer who shall have direct responsibility for the administration of this Indenture.

 “Stated Maturity” means: 

(1) with respect to any debt security, the date specified in such debt security as the fixed date on which the final
installment of principal of such debt security is due and payable; and 
 (2) with respect to any scheduled installment of
principal of or interest on any debt security, the date specified in such debt security as the fixed date on which such installment is due and payable. 

provided, that Stated Maturity shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the
date originally scheduled for the payment thereof. 
 “Subsidiary” means, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the voting power of the outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries of such Person and the accounts of which would be
consolidated with those of such Person in its consolidated financial statements in accordance with GAAP, if such statements were prepared as of such date. 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 

“Trustee” means the party named as such in this Indenture until a successor replaces it in accordance with the provisions of
this Indenture and thereafter means such successor. 
 “U.S. Government Obligations” means direct obligations of,
obligations guaranteed by, or participations in pools consisting solely of obligations of or obligations guaranteed by, the United States of America for the payment of which obligations or guarantee the full faith and credit of the United States of
America is pledged and that are not callable or redeemable at the option of the issuer thereof. 
 “U.S.A. Patriot Act”
means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended and signed into law October 26, 2001. 

SECTION 2.03. Changes to Article 1 of the Base Indenture 

Sections 1.2 through 1.17 enumerated in Article 1 of the Base Indenture shall be deleted and replaced in their entirety by the following: 

  
 15 

 “SECTION 1.2. Other Definitions. 

 

			
	 Term
	  	 Defined in Section

	 “Additional Notes”
	  	3.3
	 “Authentication Order”
	  	3.3
	 “Base Indenture”
	  	Preamble
	 “Event of Default”
	  	5.1
	 “Global Note”
	  	3.01
	 “Guaranteed Indebtedness”
	  	10.8
	 “Indenture”
	  	Preamble
	 “Initial Notes”
	  	3.3
	 “Issuer” or “Issuers”
	  	Preamble
	 “Parent”
	  	Preamble
	 “Physical Notes”
	  	3.01
	 “Securities”
	  	Recitals

 SECTION 1.3. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a
provision of the Trust Indenture Act, such provision is incorporated by reference in, and made a part of, this Indenture. The following Trust Indenture Act terms used in this Indenture have the following meanings: 

“indenture securities” means the Notes. 

“obligor” on the indenture securities means the Issuers, any Guarantor or any other obligor on the Notes. 

All other Trust Indenture Act terms used in this Indenture that are defined by the Trust Indenture Act, defined by Trust Indenture Act
reference to another statute or defined by SEC rule and not otherwise defined herein have the meanings assigned to them therein. 
 SECTION
1.4. Rules of Construction. Unless the context otherwise requires: 
 (1) a term has the meaning assigned to it; 

(2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

(3) “or” is not exclusive; 

(4) words in the singular include the plural, and words in the plural include the singular; 

(5) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision; 
 (6) the words “including,” “includes” and similar
words shall be deemed to be followed by “without limitation”; 
 (7) unsecured Indebtedness shall not be deemed to
be subordinate or junior to secured Indebtedness merely by virtue of its nature as unsecured Indebtedness; 
 (8) secured
Indebtedness shall not be deemed to be subordinate or junior to any other secured Indebtedness merely because it has a junior priority with respect to the same collateral; 

(9) the principal amount of any noninterest bearing or other discount security at any date shall be the principal amount
thereof that would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP; 
 (10) the
amount of any Preferred Stock that does not have a fixed redemption, repayment or repurchase price shall be the maximum liquidation value of such Preferred Stock; 

  
 16 

 (11) all references to the date the Notes were originally issued shall refer
to the Closing Date, except as otherwise specified; and 
 (12) references to the Issuers mean either the Issuers or the
applicable Issuer, as the context requires, and references to an Issuer mean either such Issuer or the Issuers, as the context requires. 

SECTION 1.5. Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required or deemed to be included in this Indenture by the Trust Indenture Act, such required or deemed provision shall control. 

SECTION 1.6. Notices. Any notices or other communications required or permitted hereunder shall be in writing, and shall be
sufficiently given if made by hand delivery, by telex, by nationally recognized overnight courier service, by telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 

If to the Issuers: 
 Sabra Health
Care Limited Partnership 
 Sabra Capital Corporation 

18500 Von Karman, Suite 
 550
Irvine, CA 92612 
 Facsimile: (949) 679-8868 

Attention: Richard K. Matros and Harold W. Andrews, Jr. 

with a copy to: 
 Fried, Frank,
Harris, Shriver & Jacobson LLP 
 One New York Plaza 

New York, NY 10004 
 Facsimile:
(212) 859-4000 
 Attention: Joshua Coleman, Esq. 

and 
 O’Melveny &
Myers LLP 
 610 Newport Center Drive, 17th Floor 

Newport Beach, CA 92660 

Facsimile: (949) 823-6994 

Attention: Andor Terner, Esq. 

If to Parent or any other Guarantor: 

Sabra Health Care REIT Inc. 

18500 Von Karman, Suite 550 

Irvine, CA 92612 
 Facsimile:
(949) 679-8868 
 Attention: Richard K. Matros and Harold W. Andrews, Jr. 

with a copy to: 
 Fried, Frank,
Harris, Shriver & Jacobson LLP 
 One New York Plaza 

New York, NY 10004 
 Facsimile:
(212) 859-4000 
 Attention: Joshua Coleman, Esq. 

  
 17 

 and 

O’Melveny & Myers LLP 

610 Newport Center Drive, 17th Floor 

Newport Beach, CA 92660 

Facsimile: (949) 823-6994 

Attention: Andor Terner, Esq. 

if to the Trustee: 
 Wells Fargo
Bank, National Association 
 333 S. Grand Ave., 5th Floor, Suite 5A 

Los Angeles, CA 90071 

Attention: Corporate Trust Services 

Telephone: 213-614-2588 

Facsimile: 213-614-3355 

Each of the Issuers and the Trustee by written notice to each other such Person may designate additional or different addresses for notices to
such Person. Any notice or communication to the Issuers and the Trustee, shall be deemed to have been given or made as of the date so delivered if personally delivered; when replied to; when receipt is acknowledged, if telecopied; five calendar days
after mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of address shall not be deemed to have been given until actually received by the addressee); and next Business Day if by nationally recognized
overnight courier service. 
 Any notice or communication mailed to a Holder shall be mailed to him by first class mail or other equivalent
means at his address as it appears on the registration books of the Security Registrar and shall be sufficiently given to him if so mailed within the time prescribed. 

Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a
notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
 SECTION 1.7.
Communications by Holders with Other Holders. Holders may communicate pursuant to Trust Indenture Act § 312(b) with other Holders with respect to their rights under this Indenture, the Notes or the Guaranties. The Issuers, the Trustee,
the Security Registrar and any other Person shall have the protection of Trust Indenture Act § 312(c). 
 SECTION 1.8. Certificate
and Opinion as to Conditions Precedent. Upon any request or application by the Issuers to the Trustee to take any action under this Indenture, the Issuers shall furnish to the Trustee at the request of the Trustee: 

(1) an Officer’s Certificate, in form and substance satisfactory to the Trustee, stating that, in the opinion of the
signers, all conditions precedent to be performed or effected by the Issuers, if any, provided for in this Indenture relating to the proposed action have been complied with; and 

(2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 SECTION 1.9. Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture, other than the Officer’s Certificate required by Section 10.4, shall include: 

(1) a statement that the Person making such certificate or opinion has read such covenant or condition; 

  
 18 

 (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (3) a statement
that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with or satisfied; and 

(4) a statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with;
provided, however, that with respect to matters of fact, an Opinion of Counsel may rely on an Officer’s Certificate or certificates of public officials. 

SECTION 1.10. Acts of Holders. 

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be
given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing. Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Issuers. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Security, shall be
sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and the Issuers and any agent of the Trustee or the Issuers, if made in the manner provided in this Section. 

(b) The fact and date of the execution by any Person of any such instrument or writing may be proved in any reasonable manner
that the Trustee deems sufficient and in accordance with such reasonable rules as the Trustee may determine; and the Trustee may in any instance require further proof with respect to any of the matters referred to in this Section. 

(c) The ownership of Securities and the principal amount and serial numbers of Securities held by any Person, and the date of
holding the same, shall be proved by the Security Register. 
 (d) If the Issuers shall solicit from the Holders of any
Securities any request, demand, authorization, direction, notice, consent, waiver or other Act, the Issuers may, at their option, by Board Resolution, fix in advance a record date for the determination of Holders of Securities entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act, but the Issuers shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of Securities of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of
Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date;
provided, that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record
date. 
 (e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any
Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or suffered to be done by the
Trustee, any Security Registrar, any Paying Agent, the Issuers, the Guarantor in reliance thereon, whether or not notation of such action is made upon such Security. 

SECTION 1.11. Rules by Paying Agent or Security Registrar. The Paying Agent or Security Registrar may make reasonable rules and
set reasonable requirements for their functions. 

  
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 SECTION 1.12. Legal Holidays. If an Interest Payment Date, maturity date or
Redemption Date is not a Business Day, payment may be made on the next succeeding day that is a Business Day. 
 SECTION 1.13. Governing
Law; Waiver of Jury Trial. This Indenture, the Notes and the Guaranties will be governed by and construed in accordance with the laws of the State of New York. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted
by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Indenture, the Notes, the Guaranties or the transaction contemplated hereby. 

SECTION 1.14. No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret another indenture, loan or
debt agreement of any of the Issuers or any of their Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 

SECTION 1.15. No Recourse Against Others. No recourse for the payment of the principal of, premium, if any, or interest on any of the
Notes or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Parent, the Issuers or the Guarantors in this Indenture, or in any of the Notes or Guaranties or because
of the creation of any Indebtedness represented hereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Parent, the Issuers or the Guarantors or of any successor Person thereof. Each
Holder, by accepting the Notes, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Notes. 

SECTION 1.16. Successors. All agreements of the Issuers and the Subsidiary Guarantors in this Indenture, the Notes and the Guaranties
shall bind their respective successors. All agreements of the Trustee in this Indenture shall bind its successor. 
 SECTION 1.17. Effect
of Headings and Table of Contents. The Article and Section headings herein, the Trust Indenture Act reconciliation, and the Table of Contents are for convenience only and shall not affect the construction hereof. 

SECTION 1.18. Benefits of Indenture. Nothing in this Supplemental Indenture or in the Notes or in any Guaranty, express or implied,
shall give to any Person, other than the parties hereto, any Agent, any Security Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and the Holders of Notes, any benefit or any legal or equitable right, remedy or
claim under this Supplemental Indenture. 
 SECTION 1.19. Duplicate Originals. All parties may sign any number of copies of this
Indenture. Each signed copy or counterpart shall be an original, but all of them together shall represent the same agreement. Delivery of an executed counterpart of a signature page to this Indenture by facsimile, .pdf transmission, email or other
electronic means shall be effective as delivery of a manually executed counterpart of this Indenture. 
 SECTION 1.20. Severability.
To the extent permitted by applicable law, in case any one or more of the provisions in this Indenture, in the Notes or in the Guaranties shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted
by law. 
 SECTION 1.21. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A.
Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a
relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act. 

SECTION 1.22. Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions or utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performance as soon as practicable under the circumstances.” 

  
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 ARTICLE 3 

THE NOTES 
 SECTION
3.01. Form. 
 In accordance with Article 2 of the Base Indenture, the Initial Notes and any Additional Notes shall be
issued initially in the form of one or more global Notes in registered form, substantially in the form set forth in Exhibit A, deposited with the Trustee, as custodian for the Depository, duly executed by the Issuers (and
having an executed Guaranty from each of the Guarantors endorsed thereon substantially in the form of Exhibit B) and authenticated by the Trustee as hereinafter provided and shall bear any legends required by applicable law
(together with the Initial Notes in global form, the “Global Notes”) or as Physical Notes. The aggregate principal amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depository, as hereinafter provided. Notes issued in exchange for interests in a Global Note may be issued in the form of permanent certificated Notes in registered form in substantially the form set forth in
Exhibit A and bearing the applicable legends, if any, (the “Physical Notes”). Additional Notes ranking pari passu with the Initial Notes (as defined in Section 3.3) may be created and issued
from time to time by the Issuers without notice to or consent of the Holders and shall be consolidated with and form a single class with the Initial Notes and shall have the same terms as to status, redemption or otherwise (other than with respect
to the purchase price thereof and the date from which the interest accrues) as the Initial Notes; provided that the Issuers’ ability to issue Additional Notes shall be subject to the Issuers’ compliance with Section 10.6.
Except as described under Article 9, the Initial Notes and any Additional Notes subsequently issued under this Indenture will be treated as a single class for all purposes under this Indenture, including waivers, amendments, redemptions and offers
to purchase, and shall vote together as one class on all matters with respect to the Notes; provided further that if the Additional Notes are not fungible with the Notes for U.S. Federal income tax purposes the Additional Notes will
have a separate CUSIP number, if applicable. Unless the context requires otherwise, references to “Notes” for all purposes of this Indenture include any Additional Notes that are actually issued. 

SECTION 3.02. Title and Terms. 

The terms and provisions contained in the Notes and the Guaranties shall constitute, and are hereby expressly made, a part a part of this
Supplemental Indenture and, to the extent applicable, the Issuers, the Guarantors and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

SECTION 3.03. Changes to Article 3 of the Base Indenture. 

(a) Section 3.2 of the Base Indenture shall be deleted in its entirety and replaced with the following: 

“SECTION 3.2. Denominations. The Notes shall be issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof.” 
 (b) Section 3.3 of the Base Indenture shall be deleted in its entirety and replaced
with the following: 
 “SECTION 3.3. Execution and Authentication; Additional Notes. One Officer of each of the Issuers (who
shall have been duly authorized by all requisite corporate actions) shall sign the Notes for each Issuer by manual, facsimile, .pdf attachment or other electronically transmitted signature. One Officer of each Guarantor (who shall have been duly
authorized by all requisite corporate actions) shall sign the Guaranty for such Guarantor by manual, facsimile, .pdf attachment or other electronically transmitted signature. 

  
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 If an Officer whose signature is on a Note or Guaranty, as the case may be, was an Officer
at the time of such execution but no longer holds that office at the time the Trustee authenticates the Note, the Note shall nevertheless be valid. 

A Note (and the Guaranties in respect thereof) shall not be valid until an authorized signatory of the Trustee manually signs the certificate
of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. 
 The
Trustee shall authenticate (i) on the Closing Date, Notes for original issue in the aggregate principal amount not to exceed $300,000,000 (the “Initial Notes”), and (ii) additional Notes (the “Additional
Notes”) in an unlimited amount (so long as not otherwise prohibited by the terms of this Indenture, including Section 10.6), in each case upon a written order of the Issuers in the form of a certificate of an Officer of each Issuer (an
“Authentication Order”). Each such Authentication Order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be Initial Notes or Additional Notes and
whether the Notes are to be issued as certificated Notes or Global Notes or such other information as the Trustee may reasonably request. In addition, with respect to authentication pursuant to clause (ii) of the first sentence of this
paragraph, the first such Authentication Order from the Issuers shall be accompanied by an Opinion of Counsel of the Issuers stating that: 
  

	 	•	 	 the form and terms of such Notes have been established in conformity with the provisions of this Indenture;

  

	 	•	 	 that all conditions precedent set forth in this Indenture to the authentication and delivery of such Notes have
been complied with and that such Notes, when authenticated and delivered by the Trustee and issued by the Issuers in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the
Issuers, enforceable against the Issuers in accordance with their terms, subject to bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization and other laws of general applicability relating to or affecting the enforcement of
creditors’ rights and to general equity principles; and 

  

	 	•	 	 as to such other matters as the Trustee may reasonably request. 

All Notes issued under this Indenture shall be treated as a single class for all purposes under this Indenture. The Additional Notes shall
bear any legend required by applicable law. 
 The Trustee may appoint an authenticating agent reasonably acceptable to the Issuers to
authenticate Notes. Unless otherwise provided in the appointment, an authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with the Issuers and Affiliates of the Issuers.” 
 (c) The first
sentence of the fifth paragraph of Section 3.5 of the Base Indenture shall be amended to delete the following “or if any time the Depositary for the Securities of such series shall no longer be eligible under Section 3.3”. 

(d) The last paragraph of Section 3.5 of the Base Indenture shall be deleted in its entirety and replaced with the following: 

“Without the prior written consent of the Issuers, the Security Registrar shall not be required to register the transfer of or exchange
of any Note (i) during a period beginning at the opening of business 15 days before the mailing of a notice of redemption of Notes and ending at the close of business on the day of such mailing, (ii) selected for redemption in whole or in
part pursuant to Article 11, except the unredeemed portion of any Note being redeemed in part and (iii) beginning at the opening of business on any Record Date and ending on the close of business on the related Interest Payment Date.” 

  
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 (d) The following shall be added to the Base Indenture as Section 3.12 and
Section 3.13: 
 “SECTION 3.12. Outstanding Notes. Notes outstanding at any time are all the Notes that have been
authenticated by the Trustee except those cancelled by it, those delivered to it for cancellation and those described in this Section 3.12 as not outstanding. A Note does not cease to be outstanding because the Issuers, the Guarantors or any of
their respective Affiliates hold the Note (subject to the provisions of Section 3.13). 
 If a Note is replaced pursuant to
Section 3.6 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless a Responsible Officer of the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. A
mutilated Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 3.6. 
 If the
principal amount of any Note is considered paid under Section 10.1, it ceases to be outstanding and interest ceases to accrue. If on a Redemption Date or the Stated Maturity the Trustee or Paying Agent (other than the Issuers or an Affiliate
thereof) holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay all of the principal and interest due on the Notes payable on that date, then on and after that date such Notes cease to be outstanding and interest on them ceases to
accrue. 
 SECTION 3.13. Treasury Notes. In determining whether the Holders of the required principal amount of Notes have concurred
in any direction, waiver or consent, Notes owned by the Issuers or any of their Affiliates shall be disregarded as required by the Trust Indenture Act, except that, for the purposes of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee actually knows are so owned shall be disregarded. Notes so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to
the satisfaction of the Trustee the pledgee’s right to deliver any such direction, waiver or consent with respect to the Notes and that the pledgee is not an Issuer or any obligor upon the Notes or any Affiliate of the Issuers or of such other
obligor.” 
 ARTICLE 4 

DISCHARGE OF INDENTURE 

SECTION 4.01. Changes to Article 4 of the Base Indenture 

Sections 4.1 through 4.2 enumerated in Article 4 of the Base Indenture shall be deleted and replaced in their entirety by the following: 

“SECTION 4.1. Termination of the Issuers’ Obligations. The Issuers may terminate their obligations under the Notes and this
Indenture and the obligations of the Guarantors under the Guaranties and this Indenture, and this Indenture shall cease to be of further effect, except those obligations referred to in the penultimate paragraph of this Section 4.1, if: 

(1) either 

(A) all the Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or
paid and Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuers and thereafter repaid to the Issuers or discharged from such trust) have been delivered to the Trustee for cancellation; or

 (B) all Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or
(2) will become due and payable within one year, or are to be called for redemption within one year, under arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Issuers, and the Issuers have irrevocably deposited or caused to be deposited with the Trustee funds in an 

  
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amount sufficient to pay and discharge the entire Indebtedness on the Notes not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest on the Notes
to the date of maturity or redemption, as the case may be, together with irrevocable instructions from the Issuers directing the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be; 

(2) the Issuers have paid all other sums payable under this Indenture by the Parent or the Issuers, and 

(3) the Issuers have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel stating that all
conditions precedent under this Indenture relating to the satisfaction and discharge of this Indenture have been complied with. 
 In the
case of clause (B) of this Section 4.1, and subject to the next sentence and notwithstanding the foregoing paragraph, the Issuers’ obligations in Sections 3.5, 3.6, 3.12, 6.7, 7.2, 10.1, 10.2, 10.3 (as to legal existence of the
Issuers only), 13.4 and 13.5 shall survive until the Notes are no longer outstanding pursuant to the last paragraph of Section 3.12. After the Notes are no longer outstanding, the Issuers’ obligations in Sections 6.7, 13.4 and 13.5 shall
survive. 
 After such delivery or irrevocable deposit, the Trustee upon request shall acknowledge in writing the discharge of the
Issuers’ obligations under the Notes and this Indenture except for those surviving obligations specified above. 
 The provisions of
Sections 13.3, 13.4 and 13.5 shall apply to any money, U.S. Legal Tender or U.S. Government Obligations or other funds deposited with the Trustee pursuant to this Article 4.” 

ARTICLE 5 
 DEFAULT AND
REMEDIES 
 SECTION 5.01. Changes to Article 5 of the Base Indenture 

Sections 5.1 through 5.14 enumerated in Article 5 of the Base Indenture shall be deleted in their entirety and replaced by the following: 

“SECTION 5.1. Events of Default. Each of the following is an “Event of Default”: 

(1) default in the payment of principal of, or premium, if any, on any Note when they are due and payable at maturity, upon
acceleration, redemption or otherwise; 
 (2) default in the payment of interest on any Note when they are due and payable,
and such default continues for a period of 30 days; 
 (3) default in the performance or breach of the provisions in this
Indenture applicable to mergers, consolidations and transfers of all or substantially all of the assets of the Parent; 
 (4)
the Parent defaults in the performance of or breaches any other covenant or agreement of the Parent in this Indenture or under the Notes (other than a default specified in clause (1), (2) or (3) above) and such default or breach continues
for 60 consecutive days after written notice by the Trustee or the Holders of 25% or more in aggregate principal amount of the Notes; 

  
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 (5) there occurs with respect to any issue or issues of Indebtedness of the
Parent or any Significant Subsidiary having an outstanding principal amount of $50,000,000 or more in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or shall hereafter be created, 

(i) an event of default that has caused the Holder thereof to declare such Indebtedness to be due and payable prior to its
Stated Maturity and such Indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled within 30 days of such acceleration and/or 

(ii) the failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall
not have been made, waived or extended within 30 days of such payment default; 
 (6) any final and non-appealable judgment or order (not covered by insurance) for the payment of money in excess of $50,000,000 in the aggregate, for all such final judgments or orders against all such Persons (treating any
deductibles, self-insurance or retention as not covered by insurance): 
 (i) shall be rendered against the Parent or any
Significant Subsidiary and shall not be paid or discharged and 
 (ii) there shall be any period of 60 consecutive days
following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all such Persons to exceed $50,000,000 during which a stay of enforcement of such
final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
 (7) a court of competent
jurisdiction enters a decree or order for: 
 (i) relief in respect of the Parent or any Significant Subsidiary in an
involuntary case under any applicable Bankruptcy Law now or hereafter in effect, 
 (ii) appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Parent or any Significant Subsidiary or for all or substantially all of the property and assets of the Parent or any Significant Subsidiary or 

(iii) the winding up or liquidation of the affairs of the Parent or any Significant Subsidiary and, in each case, such decree
or order shall remain unstayed and in effect for a period of 60 consecutive days; or 
 (8) the Parent or any Significant
Subsidiary: 
 (i) commences a voluntary case under any applicable Bankruptcy Law now or hereafter in effect, or consents to
the entry of an order for relief in an involuntary case under such law, 
 (ii) consents to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Parent or such Significant Subsidiary or for all or substantially all of the property and assets of the Parent or such Significant Subsidiary
or 
 (iii) effects any general assignment for the benefit of its creditors; or 

(9) the Guaranty of any Guarantor shall for any reason cease to be in full force and effect (except as otherwise not prohibited
by this Indenture) or be declared null and void or any responsible officer of such Guarantor denies that it has any further liability under its Guaranty or gives notice to such effect (as evidenced by an Officer’s Certificate to such effect,
delivered to the Trustee), in each case other than by reason of the termination of this Indenture or the release of any such Guaranty in accordance with this Indenture. 

  
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 SECTION 5.2. Acceleration. If an Event of Default (other than an Event of Default
specified in clause (7) or (8) of Section 5.1 that occurs with respect to the Parent or the Issuers) occurs and is continuing under this Indenture, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes
then outstanding, by written notice to the Issuers (and to the Trustee if such notice is given by the Holders), may, and the Trustee at the request of the Holders of at least 25% in aggregate principal amount of the Notes then outstanding shall,
declare the principal of, premium, if any, and accrued interest on the Notes to be immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if any, and accrued interest shall be immediately due and payable. In the
event of a declaration of acceleration because an Event of Default set forth in clause (5) of Section 5.1 has occurred and is continuing, such declaration of acceleration shall be automatically rescinded and annulled if the event of
default triggering such Event of Default pursuant to clause (5) of Section 5.1 shall be remedied or cured by the Parent or the relevant Significant Subsidiary or waived by the holders of the relevant Indebtedness within 60 days after the
declaration of acceleration with respect thereto. 
 If an Event or Default specified in clause (7) or (8) of Section 5.1
occurs with respect to the Parent or the Issuers, the principal of, premium, if any, and accrued interest on the Notes then outstanding shall automatically become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder. The Holders of at least a majority in principal amount of the outstanding Notes by written notice to the Issuers and to the Trustee may waive all past defaults and rescind and annul a declaration of acceleration and its
consequences if: 
 (x) all existing Events of Default, other than the nonpayment of the principal of, premium, if any,
and interest on the Notes that have become due solely by such declaration of acceleration, have been cured or waived; and 

(y) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. 

No such rescission shall affect any subsequent Default or impair any right consequent thereto. 

SECTION 5.3. Other Remedies. If a Default occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, or interest on, the Notes or to enforce the performance of any provision of the Notes or this Indenture. 

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay
or omission by the Trustee or any Holder in exercising any right or remedy accruing upon a Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Default. No remedy is exclusive of any other remedy. All
available remedies are cumulative to the extent permitted by law. 
 SECTION 5.4. Waiver of Past Defaults. Subject to Sections 3.13,
5.7 and 9.2, the Holders of a majority in principal amount of the outstanding Notes (which may include consents obtained in connection with a tender offer or exchange offer of Notes) by notice to the Trustee may waive an existing Default and its
consequences, except a Default in the payment of principal of, or interest on, any Note as specified in Section 5.1(1) or (2). The Issuers shall deliver to the Trustee an Officer’s Certificate stating that the requisite percentage of
Holders have consented to such waiver and attaching copies of such consents. When a Default is waived, it is cured and ceases. 
 SECTION
5.5. Control by Majority. The Holders of at least a majority in aggregate principal amount of the outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on the Trustee. Subject to Section 6.1, however, the Trustee may refuse to follow any direction that conflicts with any law or this Indenture, that may involve the Trustee in personal liability, or that the Trustee
determines in good faith may be unduly prejudicial to the rights of Holders of Notes not joining in the giving of such direction received from the Holders of Notes; provided, however, that the Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction. 

  
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 In the event the Trustee takes any action or follows any direction pursuant to this
Indenture, the Trustee shall be entitled to indemnification reasonably satisfactory to it from each of the Parent, the Issuers and the Guarantors against any loss or expense caused by taking such action or following such direction. 

SECTION 5.6. Limitation on Suits. No Holder shall have any right to institute any proceeding with respect to this Indenture or for any
remedy thereunder, unless: 
 (1) the Holder gives the Trustee written notice of a continuing Event of Default; 

(2) the Holders of at least 25% in aggregate principal amount of outstanding Notes make a written request to the Trustee to
pursue the remedy; 
 (3) such Holder or Holders offer the Trustee indemnity satisfactory to the Trustee against any costs,
liability or expense; 
 (4) the Trustee does not comply with the request within 60 days after receipt of the request and the
offer of indemnity; and 
 (5) during such 60-day period, the Holders of a majority
in aggregate principal amount of the outstanding Notes do not give the Trustee a direction that is inconsistent with the request. 

However, such limitations do not apply to the right of any Holder of a Note to receive payment of the principal of, premium, if any, or
interest on, such Note or to bring suit for the enforcement of any such payment on or after the due date expressed in the Notes, which right shall not be impaired or affected without the consent of the Holder. 

A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over such other Holder.

 SECTION 5.7. Rights of Holders To Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and premium, if any, and interest on, a Note, on or after the respective due dates therefor, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of the Holder. 
 SECTION 5.8. Collection Suit by Trustee. If a Default in payment of principal or
interest specified in Section 5.1(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Issuers or any other obligor on the Notes for the whole amount of
principal and accrued interest and fees remaining unpaid, together with interest on overdue principal and, to the extent that payment of such interest is lawful, interest on overdue installments of interest, in each case at the rate per annum borne
by the Notes and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

SECTION 5.9. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relating to
the Issuers, their creditors or their property and shall be entitled and empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same, and any custodian in any such judicial
proceedings is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section 6.7. Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding. The Trustee shall be entitled to participate as a member of any official committee of creditors in the matters as it deems necessary or advisable. 

  
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 SECTION 5.10. Priorities. If the Trustee collects any money or property pursuant to
this Article 5, it shall pay out the money or property in the following order: 
 First: to the Trustee for amounts due under
Section 6.7 of the Base Indenture; 
 Second: to Holders for interest accrued on the Notes, ratably, without preference or priority of
any kind, according to the amounts due and payable on the Notes for interest; 
 Third: to Holders for principal amounts due and unpaid on
the Notes, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal; and 

Fourth: to the Issuers or, if applicable, the Guarantors, as their respective interests may appear. 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 5.10. 

SECTION 5.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 5.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 5.7, or a suit by a Holder or Holders of more than 10% in principal amount of the outstanding Notes. 

SECTION 5.12. Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceedings or
any other proceedings, the Issuers, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies hereunder of the Trustee and the Holders shall continue as though
no such proceeding has been instituted.” 
 ARTICLE 6 

THE TRUSTEE 
 SECTION
6.01. Changes to Article 6 of the Base Indenture. 
 (a) Section 6.2 of the Base Indenture shall be deleted in
its entirety and replaced with the following: 
 “SECTION 6.2. Notice of Defaults. If a Default occurs and is continuing and is
deemed to be known to the Trustee pursuant to Section 6.3(l), the Trustee shall mail to each Holder notice of the uncured Default within 60 days after such Default occurs. Except in the case of a Default in payment of principal of, or interest
on, any Note, including an accelerated payment and the failure to make a payment on an Interest Payment Date, maturity date or Redemption Date, as applicable, pursuant to a Default in complying with the provisions of Article 14, the Trustee may
withhold the notice if and so long as the Board of Directors, the executive committee, or a trust committee of directors and/or Responsible Officers, of the Trustee in good faith determines that withholding the notice is in the interest of the
Holders.” 
 (b) The third to last paragraph of Section 6.7 shall be amended to delete the references to
“Section 5.1(d)” and to “Section 5.1(e)” and replace such references with “Section 5.1(7)” and “Section 5.1(8)”, respectively. 

  
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 (c) Section 6.10(d) of the Base Indenture shall be amended to delete the reference to
“Section 5.14” and replace such reference with “Section 5.11”. 
 (d) The last paragraph of Section 6.14
of the Base Indenture shall be amended to delete the reference to “Section 1.2” and replace such reference with “Sections 1.8 and 1.9”. 

ARTICLE 7 

HOLDERS’ LISTS AND REPORTS BY THE TRUSTEE 

SECTION 7.01. Changes to Article 7 of the Base Indenture. 

Section 7.4 of the Base Indenture shall be deleted in its entirety. 

ARTICLE 8 
 GUARANTY

 SECTION 8.01. Changes to Article 8 of the Base Indenture 

Sections 8.1 through 8.5 enumerated in Article 8 of the Base Indenture shall be deleted and replaced in their entirety by the following: 

“SECTION 8.1. Guaranty. Subject to this Article 8, each of the Guarantors hereby, jointly and severally, unconditionally guarantees
on a senior unsecured basis to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of the
Issuers hereunder or thereunder, that: (a) the principal of and interest on the Notes shall be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful, and all other obligations of the Issuers to the Holders or the Trustee hereunder or thereunder shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in case of
any extension of time of payment or renewal of any Notes or any of such other obligations, that same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately. Each Guarantor agrees that
this is a guarantee of payment and not a guarantee of collection. 
 The Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or
thereof, the recovery of any judgment against the Issuers, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Subject to Section 5.6 hereof, each
Guarantor hereby waives, to the extent permitted by applicable law, diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Issuers, any right to require a proceeding first against the
Issuers, protest, notice and all demands whatsoever and covenant that this Guaranty shall not be discharged except by complete performance of the obligations contained in the Notes and this Indenture. 

If any Holder or the Trustee is required by any court or otherwise to return to the Issuers, the Guarantors or any custodian, trustee,
liquidator or other similar official acting in relation to either the Issuers or the Guarantors, any amount paid by either to the Trustee or such Holder, this Guaranty, to the extent theretofore discharged, shall be reinstated in full force and
effect. 

  
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 Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 5 hereof for the purposes of this Guaranty, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby and (y) in the event of any declaration of acceleration of such obligations as provided in Article 5 hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Guaranty. 
 SECTION 8.2. Limitation on Guarantor Liability. Each Guarantor, and by its acceptance
of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Guaranty of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar Federal or state law to the extent applicable to any Guaranty. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such
Guarantor will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or
payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 8, result in the obligations of such Guarantor under its Guaranty not constituting a fraudulent transfer or conveyance.
Each Guarantor that makes a payment for distribution under its Guaranty is entitled to a contribution from each other Guarantor in a pro rata amount based on the adjusted net assets of each Guarantor. 

SECTION 8.3. Execution and Delivery of Guaranty. To evidence its Guaranty set forth in Section 8.1, each Guarantor hereby agrees
that a notation of such Guaranty substantially in the form included in Exhibit B shall be endorsed by an Officer of such Guarantor or an Officer of any Person acting in its capacity as the general partner of such Guarantor,
as applicable, on each Note authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of such Guarantor by an Officer or an Officer of any Person acting in its capacity as the general partner of such Guarantor,
as applicable. 
 Each Guarantor hereby agrees that its Guaranty set forth in Section 8.1 shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Guaranty. 
 If an Officer whose signature is on this Indenture or on
the Guaranty no longer holds that office at the time the Trustee authenticates the Note on which a Guaranty is endorsed, the Guaranty shall be valid nevertheless. 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guaranty set forth
in this Indenture on behalf of the Guarantors. 
 SECTION 8.4. Release of a Guarantor. A Guarantor shall be automatically and
unconditionally released and discharged from its obligations under its Guaranty and its obligations under this Indenture: 

(1) upon any sale, exchange or transfer, to any Person not a Subsidiary of the Parent of Capital Stock held by the Parent and
its Subsidiaries in, or all or substantially all the assets of, such Subsidiary Guarantor (which sale, exchange or transfer is not prohibited by this Indenture), such that, immediately after giving effect to such transaction, such Subsidiary
Guarantor would no longer constitute a Subsidiary of the Parent, 
 (2) in connection with the merger or consolidation of a
Subsidiary Guarantor with (a) an Issuer or (b) any other Guarantor (provided that the surviving entity remains a Guarantor), 

(3) upon the Legal Defeasance or Covenant Defeasance or satisfaction and discharge of this Indenture, 

(4) upon a liquidation or dissolution of a Subsidiary Guarantor permitted under this Indenture, or 

  
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 (5) if such Subsidiary Guarantor is not a guarantor or is not otherwise
liable in respect of any obligations under any Credit Facility including upon the release or discharge of the Guarantee (in each case, which release and discharge may be concurrent with the release and discharge of such Subsidiary Guarantor, or
concurrent with such Subsidiary Guarantor otherwise becoming free of any obligations, under such Credit Facility), including those in existence on the date of this Indenture, that resulted in the creation of such Subsidiary Guaranty, except in each
case as a result of payment under such Guarantee. 
 The Trustee may execute an appropriate instrument prepared by the Issuers evidencing
the release of a Guarantor from its obligations under its Guaranty and this Indenture upon receipt of a request by the Issuers or such Guarantor accompanied by an Officer’s Certificate and an Opinion of Counsel certifying as to the compliance
with this Section 8.4; provided, however, that the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or more Officer’s Certificates of the Issuers. 

Nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or merger of a Guarantor with or into an Issuer (in
which case such Guarantor shall no longer be a Guarantor) or another Guarantor or shall prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to an Issuer or another Guarantor.” 

  
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 ARTICLE 9 

AMENDMENTS, SUPPLEMENTS AND WAIVERS 

SECTION 9.01. Changes to Article 9 of the Base Indenture 

Sections 9.1 through 9.6 enumerated in Article 9 of the Base Indenture shall be deleted and replaced in their entirety by the following: 

“SECTION 9.1. Without Consent of Holders. The Parent, the Issuers, the Guarantors and the Trustee, together, may amend or
supplement this Indenture, the Notes or the Guaranties without notice to or consent of any Holder: 
 (1) to cure any
ambiguity, omission, defect or inconsistency; 
 (2) to provide for the assumption by a successor corporation of the
obligations of the Parent, the Issuers or any Subsidiary Guarantor under this Indenture; 
 (3) to provide for uncertificated
Notes in addition to or in place of certificated Notes; 
 (4) to add guarantees with respect to the Notes, including any
Subsidiary Guaranties or to release a Subsidiary Guarantor or Sabra Capital as an Issuer in accordance with terms of this Indenture; 

(5) to secure the Notes or any Guaranties; 

(6) to add to the covenants of the Parent, the Issuers or a Subsidiary Guarantor for the benefit of the Holders or to surrender
any right or power conferred upon the Parent, the Issuers or a Subsidiary Guarantor; 
 (7) to add any additional Events of
Default for all or any of the Notes; 
 (8) to make any change that does not adversely affect the rights of any Holder in any
material respect; 
 (9) to comply with any requirement of the SEC in order to effect or maintain the qualification of this
Indenture under the Trust Indenture Act; 
 (10) to make any amendment to the provisions of this Indenture relating to the
transfer and legending of Notes; provided, however, that (a) compliance with this Indenture as so amended would not result in Notes being transferred in violation of the Securities Act or any other applicable securities law and
(b) such amendment does not materially and adversely affect the rights of Holders to transfer Notes; 
 (11) to conform
the text of this Indenture or the Guaranties or the Notes to any provision of the “Description of Notes” section of the Prospectus Supplement to the extent that such provision in the “Description of Notes” section of the
Prospectus Supplement was intended to be a substantially verbatim recitation of a provision of this Indenture or the Guaranties or the Notes, as conclusively evidenced by an Officer’s Certificate delivered to the Trustee; 

(12) evidence and provide for the acceptance of appointment by a successor trustee, provided that the successor trustee
is otherwise qualified and eligible to act as such under the terms of this Indenture; 
 (13) provide for a reduction in the
minimum denominations of the Notes; 
 (14) comply with the rules of any applicable securities depositary; or 

  
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 (15) to provide for the issuance of Additional Notes and related guarantees
in accordance with the limitations set forth in this Indenture. 
 SECTION 9.2. With Consent of Holders. (a) Subject to
Section 5.7, the Issuers, the Guarantors and the Trustee, together, with the consent of the Holder or Holders of not less than a majority in aggregate principal amount of the outstanding Notes may amend or supplement this Indenture, the Notes
or the Guaranties, without notice to any other Holders. Subject to Sections 5.7, the Holder or Holders of not less than a majority in aggregate principal amount of the outstanding Notes may waive compliance with any provision of this Indenture, the
Notes or the Guaranties without notice to any other Holders. 
 (b) Notwithstanding Section 9.2(a), without the consent of each Holder
affected, no amendment or waiver may: 
 (1) change the Stated Maturity of the principal of, or any installment of interest
on, the Notes; 
 (2) reduce the principal amount of, or premium, if any, or interest on, the Notes; 

(3) change the place of payment of principal of, or premium, if any, or interest on, the Notes; 

(4) impair the right to institute suit for the enforcement of any payment on or after the Stated Maturity (or, in the case of a
redemption, on or after the Redemption Date) of the Notes; 
 (5) reduce the above-stated percentage of outstanding Notes the
consent of whose Holders is necessary to modify or amend this Indenture; 
 (6) waive a default in the payment of principal
of, premium, if any, or interest on the Notes (except a rescission of the declaration of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the Notes then outstanding and a waiver of the payment default
that resulted from such acceleration, so long as all other existing Events of Default, other than the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due solely by such declaration of acceleration, have
been cured or waived); 
 (7) voluntarily release a Guarantor of the Notes, except as permitted by this Indenture; 

(8) reduce the percentage or aggregate principal amount of outstanding Notes the consent of whose Holders is necessary for
waiver of compliance with Sections 5.2 and 5.4; or 
 (9) modify or change any provisions of this Indenture affecting the
ranking of the Notes as to right of payment or the Guaranties in any manner adverse to the Holders of the Notes. 
 (c) It shall not be
necessary for the consent of the Holders under this Section 9.2 to approve the particular form of any proposed amendment, supplement or waiver but it shall be sufficient if such consent approves the substance thereof. 

(d) A consent to any amendment, supplement or waiver under this Indenture by any Holder given in connection with an exchange (in the case of an
exchange offer) or a tender (in the case of a tender offer) of such Holder’s Notes shall not be rendered invalid by such tender or exchange. 

(e) After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Parent shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Parent to give such notice to all Holders, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver. 
 (f) The Trustee shall not have any obligation to determine whether or not an amendment to this Indenture adversely
affects the rights of any Holder in any material respect. 

  
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 SECTION 9.3. Compliance with the Trust Indenture Act. From the date on which this
Indenture is qualified under the Trust Indenture Act, every amendment, waiver or supplement of this Indenture, the Notes or the Guaranties shall comply with the Trust Indenture Act as then in effect. 

SECTION 9.4. Revocation and Effect of Consents. Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder or
subsequent Holder may revoke the consent as to his Note or portion of his Note by notice to the Trustee or the Issuers received before the date on which the Trustee receives an Officer’s Certificate certifying that the Holders of the requisite
principal amount of Notes have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver. 
 The Issuers
may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver, which record date shall be at least 30 days prior to the first solicitation of such consent.
If a record date is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any
consent previously given, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 90 days after such record date. The Issuers shall inform the Trustee in writing of the
fixed record date if applicable. 
 After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless it makes
a change described in any of clauses (1) through (9) of Section 9.2(b), in which case, the amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it and every subsequent Holder of a Note or portion
of a Note that evidences the same debt as the consenting Holder’s Note; provided, however, that any such waiver shall not impair or affect the right of any Holder to receive payment of principal of, and interest on, a Note, on or after
the respective due dates therefor, or to bring suit for the enforcement of any such payment on or after such respective dates without the consent of such Holder. 

SECTION 9.5. Notation on or Exchange of Notes. If an amendment, supplement or waiver changes the terms of a Note, the Issuers may
require the Holder of the Note to deliver it to the Trustee. The Issuers shall provide the Trustee with an appropriate notation on the Note about the changed terms and cause the Trustee to return it to the Holder at the Issuers’ expense.
Alternatively, if the Issuers or the Trustee so determines, the Issuers in exchange for the Note shall issue, and the Trustee shall authenticate, a new Note that reflects the changed terms. Failure to make the appropriate notation or issue a new
Note shall not affect the validity and effect of such amendment, supplement or waiver. 
 SECTION 9.6. Trustee To Sign Amendments,
Etc. The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this Article 9; provided, however, that the Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver which
affects the Trustee’s own rights, duties or immunities under this Indenture. The Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel and an Officer’s Certificate each stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article 9 is authorized or permitted by this Indenture and constitutes legal, valid and binding obligations of the Issuers enforceable in accordance with its terms, subject
to customary exceptions. Such Opinion of Counsel shall be at the expense of the Issuers.” 
 ARTICLE 10 

COVENANTS 
 SECTION
10.01. Changes to Article 10 of the Base Indenture 
 Sections 10.1 through 10.4 enumerated in Article 10 of the
Base Indenture shall be deleted in their entirety and replaced with the following: 

  
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 “SECTION 10.1. Payment of Notes. The Issuers shall pay the principal of,
premium, if any, and interest on the Notes in the manner provided in the Notes and this Indenture. An installment of principal of, or interest on, the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent (other than
the Issuers or an Affiliate thereof) holds on that date U.S. Legal Tender designated for and sufficient to pay the installment. Interest on the Notes will be computed on the basis of a 360-day year comprised
of twelve 30-day months. 
 The Issuers shall pay interest on overdue principal (including post
petition interest in a proceeding under any Bankruptcy Law), and overdue interest, to the extent lawful, at the same rate per annum borne by the Notes. 

SECTION 10.2. Maintenance of Office or Agency. The Issuers shall maintain in the United States of America, the office or agency
required under Section 3.5 (which may be an office of the Trustee or an affiliate of the Trustee or Security Registrar). The Issuers shall give prompt written notice to the Trustee of the location, and any change in the location, of such office
or agency. If at any time the Issuers shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address
of the Corporate Trust Office. 
 The Issuers may also, from time to time, designate one or more other offices or agencies where the Notes
may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The Issuers shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of
any such other office or agency. 
 The Issuers hereby initially designate Wells Fargo Bank, National Association, located at 625 Marquette
Avenue, Minneapolis, MN 55402, Attention: Bondholder Communications, as such office of the Issuers in accordance with Section 3.5. 

SECTION 10.3. Corporate Existence. Except as otherwise permitted by Article 14, the Parent and the Issuers shall do or cause to be done
all things necessary to preserve and keep in full force and effect their corporate, partnership or other existence, as applicable, and the corporate, partnership or other existence, as applicable, of each of the Subsidiaries of the Parent in
accordance with the respective organizational documents of each such Subsidiary and the related material rights (charter and statutory) and material franchises of the Parent, the Issuers and each Subsidiary of the Parent; provided, however,
that the Parent and the Issuers shall not be required to preserve any such right, franchise or corporate existence with respect to themselves or any Subsidiary if the Board of Directors of the Parent or any officer of the Parent shall determine that
the preservation thereof is no longer necessary or desirable in the conduct of the business of the Parent, the Issuers and their Subsidiaries, taken as a whole, and that the loss thereof could not reasonably be expected to have a material adverse
effect on the ability of the Issuers to perform their obligations hereunder and provided, further, however, that the foregoing shall not prohibit a sale, transfer, conveyance, lease or disposal of a Subsidiary or any of the
Parent’s or any Subsidiary’s assets in compliance with the terms of this Indenture. 
 SECTION 10.4. Compliance Certificate;
Notice of Default. (a) The Parent shall deliver to the Trustee, within 120 days after each December 31, commencing with December 31, 2019, an officer’s certificate signed by the principal executive officer, principal
financial officer or principal accounting officer of the Parent stating that a review of the activities of the Parent and its Subsidiaries (including the Issuers) has been made under the supervision of the signing Officer with a view to determining
whether the Parent and its Subsidiaries (including the Issuers) have kept, observed, performed and fulfilled their obligations under this Indenture and further stating, as to each such Officer signing such certificate, that, to the best of such
Officer’s knowledge, the Parent and its Subsidiaries (including the Issuers) during such preceding fiscal year have kept, observed, performed and fulfilled each and every such covenant and no Default occurred during such year and at the date of
such certificate there is no Default that has occurred and is continuing or, if such signers do know of such Default, the certificate shall specify such Default and what action, if any, the Parent is taking or propose to take with respect thereto.

 (b) The Parent shall deliver to the Trustee within 30 days after the Parent becomes aware (unless such Default has been cured before the
end of the 30-day period) of the occurrence of any Default an Officer’s Certificate specifying the Default and what action, if any, the Parent is taking or propose to take with respect thereto. 

  
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 SECTION 10.5. Waiver of Stay, Extension or Usury Laws. The Issuers and each Guarantor
covenants (to the extent permitted by applicable law) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would
prohibit or forgive such Issuer or such Guarantor from paying all or any portion of the principal of and/or interest on the Notes or the Guaranty of any such Guarantor as contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture, and (to the extent permitted by applicable law) each hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 

SECTION 10.6. Limitation on Indebtedness. 

(a) The Parent shall not, and shall not permit any of its Subsidiaries (including the Issuers) to, Incur any Indebtedness (including Acquired
Indebtedness) if, immediately after giving effect to the Incurrence of such additional Indebtedness and the receipt and application of the proceeds therefrom, the aggregate principal amount of all outstanding Indebtedness of the Parent and its
Subsidiaries on a consolidated basis is greater than 60% of Parent’s Adjusted Total Assets; provided, however, that such limitation on Indebtedness shall not apply to (a) the guarantees issued on the Closing Date,
(b) other Indebtedness existing on the Closing Date, (c) any guarantees of the Notes issued after the Closing Date, (d) intercompany indebtedness and (e) guarantees of Indebtedness Incurred by any Subsidiary that is subordinated
in right of payment to the Notes. 
 (b) The Parent shall not, and shall not permit any of its Subsidiaries (including the Issuers) to, Incur
any Secured Indebtedness (including Acquired Indebtedness) if, immediately after giving effect to the Incurrence of such additional Secured Indebtedness and the receipt and application of the proceeds therefrom, the aggregate principal amount of all
outstanding Secured Indebtedness of the Parent and its Subsidiaries (including the Issuers) on a consolidated basis is greater than 40% of Parent’s Adjusted Total Assets. 

(c) The Parent shall not, and shall not permit any of its Subsidiaries (including the Issuers) to, Incur any Indebtedness (including Acquired
Indebtedness) if, immediately after giving effect to the Incurrence of such additional Indebtedness and the receipt and application of the proceeds therefrom, the Interest Coverage Ratio of the Parent and its Subsidiaries on a consolidated basis
would be less than 1.5 to 1.0. 
 (d) Notwithstanding any other provision of this Section 10.6, the maximum amount of Indebtedness that
the Parent or any of its Subsidiaries may Incur pursuant to this Section 10.6 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness, due solely to the result of fluctuations in the exchange rates of currencies. 

(e) For purposes of determining any particular amount of Indebtedness under this Section 10.6, Guarantees, Liens or obligations with
respect to letters of credit supporting Indebtedness otherwise included in the determination of such particular amount shall not be included. 

For purposes of determining compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S.
dollar-equivalent principal amount of Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term debt, or first committed,
in the case of revolving credit debt; provided, however, that if such Indebtedness is incurred to refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable U.S. dollar denominated
restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such
refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, plus the amount of any reasonable premium (including reasonable tender premiums), defeasance costs and any reasonable fees and expenses incurred in
connection with the issuance of such new Indebtedness. The principal amount of any Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the
currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing. 

  
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 SECTION 10.7. Maintenance of Total Unencumbered Assets. The Parent and its
Subsidiaries shall maintain Total Unencumbered Assets as of the end of each fiscal quarter of not less than 150% of the aggregate outstanding principal amount of the Unsecured Indebtedness of the Parent and its Subsidiaries on a consolidated basis
as of the end of each fiscal quarter. 
 SECTION 10.8. Future Guaranties by Subsidiaries. (a) The Parent shall not permit any
Subsidiary of the Issuers, directly or indirectly, to Guarantee any Indebtedness under any Credit Facility of the Issuers or of a Subsidiary Guarantor that ranks equally with or subordinate in right of payment to the Notes (or the applicable
Subsidiary Guaranty) (“Guaranteed Indebtedness”), unless in either case such Subsidiary within 30 calendar days executes and delivers a supplemental indenture to this Indenture providing for a Subsidiary Guaranty by such Subsidiary;
provided, however, that this paragraph shall not be applicable to any Guarantee of any Subsidiary with respect to Guaranteed Indebtedness that existed at the time such Person became a Subsidiary and was not Incurred in connection with, or in
contemplation of, such person becoming a Subsidiary. The Parent may elect, in its sole discretion, to cause any Subsidiary that is not otherwise required to be a Guarantor to become a Guarantor, in which case such Subsidiary shall not be required to
comply with the 30-calendar day period described above. 
 (b) If the Guaranteed Indebtedness: 

(i) ranks equally with the Notes in right of payment, then the Guarantee of such Guaranteed Indebtedness shall rank equally
with, or subordinate to, the Subsidiary Guaranty in right of payment; or 
 (ii) is subordinate in right of payment to the
Notes, then the Guarantee of such Guaranteed Indebtedness shall be subordinated in right of payment to the Subsidiary Guaranty at least to the extent that the Guaranteed Indebtedness is subordinated to the Notes. 

(c) Any Subsidiary Guaranty shall be automatically and unconditionally released and discharged pursuant to Section 8.4. 

SECTION 10.9. Reports to Holders. (a) For so long as the Notes remain outstanding, the Parent shall file with the SEC all such
documents, reports and other information as it is required to file with the SEC by Sections 13(a) or 15(d) under the Exchange Act; provided, however, that, if filing such documents by the Parent with the SEC is not permitted under the
Exchange Act or if at any time the Parent is not subject to Sections 13 or 15(d) of the Exchange Act, the Parent shall, within 15 days after the time the Parent would be required to file such information with the SEC if it were subject to Sections
13 or 15(d) under the Exchange Act, provide to the Trustee such documents, reports or other material disclosures as it would have been required to file with the SEC by Sections 13 or 15(d) of the Exchange Act, upon written request supply copies of
such documents and reports to any Holder and, at its option, shall post such documents and reports on the Parent’s public website or post such documents and reports on Intralinks or any comparable password protected online data system requiring
user identification and a confidentiality agreement (a “Confidential Datasite”). If the Parent elects to furnish such reports and information via a Confidential Datasite, access to the Confidential Datasite shall be provided upon
request to holders, beneficial owners of, and bona fide prospective investors in the Notes as well as securities analysts and market makers. The Parent shall supply the Trustee and each Holder, without cost to the Trustee or such Holder, copies of
such reports and other information. Delivery of such information, documents and reports to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Issuers’ compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates). 

(b) So long as permitted by the SEC, at any time Parent holds directly any material assets (including Capital Stock) other than the Capital
Stock of the Issuers and such other assets taken together would represent 5% or more of the Total Assets of Parent and its Subsidiaries as of the latest quarterly financial statements, then the quarterly and annual financial information required by
this Section 10.9 will include a reasonably detailed presentation, either in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” or any other comparable section, of the financial condition and
results of operations of the Issuers and their Subsidiaries separate from the financial condition and results of operations of such other material assets of Parent. 

  
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 (c) The Parent shall also, within a reasonably prompt period of time following the
disclosure of the annual and quarterly information required above, conduct a conference call with respect to such information and results of operations for the relevant reporting period. No fewer than three Business Days prior to (i) the
disclosure of the annual, quarterly and periodic information required above and (ii) the date of the conference call required to be held in accordance with the preceding sentence, the Parent shall issue a press release to the appropriate
internationally recognized wire services announcing the date that such information will be available and the time and date of such conference call. 

(d) Notwithstanding anything herein to the contrary, the Parent shall not be deemed to have failed to comply with any of its obligations under
this Section 10.9 for purposes of Section 5.1(4) until 30 days after the date any report hereunder is due. 
 ARTICLE 11

 REDEMPTION 

SECTION 11.01. Changes to Article 11 of the Base Indenture 

Sections 11.1 through 11.7 enumerated in Article 11 of the Base Indenture shall be deleted and replaced in their entirety by the following:

 “Section 11.1. Notices to Trustee. The Notes may be redeemed, in whole, or from time to time in part, subject to the
conditions and at the redemption prices set forth in Section 5 of the form of Notes set forth in Exhibit A hereto, which is hereby incorporated by reference and made a part of this Indenture, together with accrued and unpaid interest to
the Redemption Date. If the Issuers elect to redeem Notes pursuant to Section 5 of the Notes, they shall notify the Trustee in writing of the Redemption Date, the Redemption Price and the principal amount of Notes to be redeemed. The Issuers
shall give notice of redemption to the Trustee at least 45 days but not more than 75 days before the Redemption Date (unless a shorter notice shall be agreed to by the Trustee in writing), together with such documentation and records as shall enable
the Trustee to select the Notes to be redeemed. 
 SECTION 11.2. Applicability of Article. Redemption or purchase of Notes as
permitted by Section 11.1 shall be made in accordance with this Article 11. 
 SECTION 11.3. Selection of Notes To Be Redeemed.
If less than all of the Notes are to be redeemed at any time pursuant to Section 5 of the Notes, the Trustee shall select Notes for redemption as follows: 

(x) in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are then
listed; or 
 (y) on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate;

 provided, however, that, in the case of such redemption pursuant to Section 6 of the Notes, the Trustee shall select the Notes on a pro
rata basis to the extent practicable, by lot or such other method as the Trustee in its sole discretion shall deem to be fair and appropriate, unless another method is required by law or applicable exchange or depositary requirements (subject to
the procedures of the Depository). 
 No Notes of $2,000 or less shall be redeemed in part. 

SECTION 11.4. Notice of Redemption. At least 15 days but not more than 60 days before a Redemption Date, the Issuers shall mail a
notice of redemption by first class mail, postage prepaid, or as otherwise provided in accordance with the procedures of the Depository, to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be
mailed more than 60 days prior to a Redemption Date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Article 4 and Article 13 hereof. At the Issuers’ request, the
Trustee shall forward the notice of redemption in the Issuers’ name and at the Issuers’ expense. Each notice for redemption shall identify the Notes (including the CUSIP or ISIN number) to be redeemed and shall state: 

  
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 (1) the Redemption Date; 

(2) the Redemption Price and the amount of accrued interest, if any, to be paid; 

(3) the name and address of the Paying Agent; 

(4) that Notes called for redemption shall be surrendered to the Paying Agent to collect the Redemption Price plus accrued
interest, if any; 
 (5) that, unless the Issuers default in making the redemption payment, interest on Notes called for
redemption ceases to accrue on and after the Redemption Date, and the only remaining right of the Holders of such Notes is to receive payment of the Redemption Price upon surrender to the Paying Agent of the Notes redeemed; 

(6) if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the
Redemption Date, and upon surrender and cancellation of such Note, a new Note or Notes in aggregate principal amount equal to the unredeemed portion thereof will be issued; 

(7) if fewer than all the Notes are to be redeemed, the identification of the particular Notes (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after such partial redemption; and 

(8) the Section of the Notes or this Indenture, as applicable, pursuant to which the Notes are to be redeemed. 

The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder receives such
notice. In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated for redemption in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.
Except as otherwise provided in this Article 11, notices of redemption may not be conditional. 
 At the Issuers’ request, the Trustee
shall give the notice of redemption in the name of the Issuers and at its expense; provided that the Issuers shall have delivered to the Trustee, at least five Business Days before notice of redemption is required to be mailed or caused to be
mailed to Holders pursuant to this Section 11.4 (unless a shorter notice shall be agreed to by the Trustee), an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such
notice as provided in the preceding paragraph. 
 SECTION 11.5. Effect of Notice of Redemption. Once notice of redemption is mailed
in accordance with Section 11.4, Notes called for redemption become due and payable on the Redemption Date and at the Redemption Price plus accrued interest, if any. Upon surrender to the Trustee or Paying Agent, such Notes called for
redemption shall be paid at the Redemption Price (which shall include accrued interest thereon to, but not including, the Redemption Date), but installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable
to Holders of record at the close of business on the relevant Record Dates. On and after the Redemption Date interest shall cease to accrue on Notes or portions thereof called for redemption unless the Issuers shall have not complied with its
obligations pursuant to Section 11.6. 
 SECTION 11.6. Deposit of Redemption Price. On or before 12:00 p.m. New York City time
(or such later time as has been agreed to by the Paying Agent) on the Redemption Date, the Issuers shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Redemption Price plus accrued and unpaid interest, if any, of all Notes to
be redeemed on that date. The Paying Agent shall promptly return to the Issuers any money deposited with the Paying Agent by the Issuers in excess of the amounts necessary to pay the Redemption Price of, and accrued and unpaid interest on, all Notes
to be redeemed or purchased. 

  
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 If the Issuers comply with the preceding paragraph, then, unless the Issuers default in the
payment of such Redemption Price plus accrued interest, if any, interest on the Notes to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such Notes are presented for payment. 

SECTION 11.7. Notes Redeemed in Part. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note
shall state the portion of the principal amount thereof to be redeemed. A new Note or Notes in principal amount equal to the unredeemed portion of the original Note or Notes shall be issued in the name of the Holder thereof upon surrender and
cancellation of the original Note or Notes. It is understood that, notwithstanding anything in this Indenture to the contrary, only an Authentication Order and not an Opinion of Counsel or Officer’s Certificate is required for the Trustee to
authenticate such new Note. 
 SECTION 11.8. Mandatory Redemption. The Issuers will not be required to make any mandatory redemption
or sinking fund payments with respect to the Notes.” 
 ARTICLE 12 

SINKING FUNDS 
 SECTION
12.01. Applicability of Article 12 of the Base Indenture 
 Article 12 (“Sinking Funds”) of the Base Indenture
shall not be applicable to the Notes. 
 ARTICLE 13 

DEFEASANCE 
 SECTION
13.01. Changes to Article 13 of the Base Indenture 
 Sections 13.1 through 13.6 enumerated in Article 13 of the Base
Indenture shall be deleted and replaced in their entirety by the following: 
 “SECTION 13.1. Legal Defeasance and Covenant
Defeasance. (a) The Issuers may, at their option and at any time, elect to have either paragraph (b) or (c) below be applied to all outstanding Notes upon compliance with the conditions set forth in Section 13.2. 

(b) Upon the Issuers’ exercise under Section 13.1(a) hereof of the option applicable to this Section 13.1(b), the Issuers and
the Guarantors shall, subject to the satisfaction of the conditions set forth in Section 13.2, be deemed to have been discharged from their obligations with respect to all outstanding Notes on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuers and the Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes and
Guaranties, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 13.3 hereof and the other Sections of this Indenture referred to in (i) and (ii) below, and to have satisfied all its other
obligations under such Notes and this Indenture and the Guarantors shall be deemed to have satisfied all of their obligations under the Guaranties and this Indenture (and the Trustee, on demand of and at the expense of the Issuers, shall execute
proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: 

(i) the rights of Holders of outstanding Notes to receive, solely from the trust fund described in Section 13.3, and as
more fully set forth in such Section 13.3, payments in respect of the principal of and interest on such Notes when such payments are due; 

(ii) the Issuers’ obligations with respect to such Notes concerning issuing temporary Notes, registration of Notes,
mutilated, destroyed, lost or stolen Notes and Section 10.2 hereof; 

  
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 (iii) the rights, powers, trusts, duties and immunities of the Trustee, and
the Issuers’ obligations in connection therewith; and 
 (iv) the provisions of this Article 13 applicable to Legal
Defeasance. 
 Subject to compliance with this Article 13, the Issuers may exercise their option under this Section 13.1(b)
notwithstanding the prior exercise of its option under Section 13.1(c). 
 (c) Upon the Issuers’ exercise under
Section 13.1(a) hereof of the option applicable to this Section 13.1(c), the Issuers and the Guarantors shall, subject to the satisfaction of the conditions set forth in Section 13.2, be released from their respective obligations
under the covenants contained in Sections 10.3 (other than with respect to the legal existence of the Issuers), 10.6 through 10.9 and clause (3) of Section 14.1(a) with respect to the outstanding Notes on and after the date the conditions
set forth in Section 13.2 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Issuers and the Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission
to comply shall not constitute an Event of Default under Section 5.1, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Issuers’ exercise under
paragraph (a) hereof of the option applicable to this paragraph (c), subject to the satisfaction of the conditions set forth in Section 13.2, clauses (3), (4), (5) and (6) of Section 5.1 shall not constitute Events of
Default. 
 SECTION 13.2. Conditions to Legal Defeasance or Covenant Defeasance. The following shall be the conditions to the
application of either Section 13.1(b) or 13.1(c) hereof to the outstanding Notes: 
 (1) the Issuers shall irrevocably
deposit with the Trustee, in trust, for the benefit of the Holders, U.S. Legal Tender, U.S. Government Obligations or a combination thereof, in such amounts as will be sufficient (without reinvestment), in the opinion of a nationally recognized firm
of independent public accountants selected by the Issuers, to pay the principal of and interest on the Notes on the stated date for payment or on the redemption date of the Notes; 

(2) in the case of Legal Defeasance, the Issuers shall have delivered to the Trustee an Opinion of Counsel in the United States
confirming that, subject to customary assumptions and exclusions: 
  

	 	(a)	 the Issuers have received from, or there has been published by the Internal Revenue Service, a ruling, or

  

	 	(b)	 since the date of this Indenture, there has been a change in the applicable U.S. Federal income tax law,

 in either case to the effect that, and based thereon this Opinion of Counsel shall confirm that the Holders will not recognize income,
gain or loss for U.S. Federal income tax purposes as a result of such Legal Defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance
had not occurred; 
 (3) in the case of Covenant Defeasance, the Issuers shall have delivered to the Trustee an Opinion of
Counsel in the United States reasonably acceptable to the Trustee confirming that, subject to customary assumptions and exclusions, the Holders will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such Covenant
Defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

  
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 (4) no Default shall have occurred and be continuing on the date of such
deposit (other than a Default resulting from the borrowing of funds to be applied to such deposit and any similar and simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens on the deposited funds in connection
therewith); 
 (5) the Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a
default under any other material agreement or instrument (other than this Indenture) to which the Parent or any of its Subsidiaries is a party or by which the Parent or any of its Subsidiaries is bound (other than any such Default or default
relating to any Indebtedness being defeased from any borrowing of funds to be applied to such deposit and any similar and simultaneous deposit relating to such Indebtedness, and the granting of Liens on the deposited funds in connection therewith);

 (6) the Issuers shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by
them with the intent of preferring the Holders over any other creditors of the Issuers or with the intent of defeating, hindering, delaying or defrauding any other of their creditors or others; and 

(7) the Issuers shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
the conditions provided for in, in the case of the Officer’s Certificate, clauses (1) through (6), as applicable, and, in the case of the Opinion of Counsel, clauses (2), if applicable, and/or (3) and (5) of this
Section 13.2 have been complied with. 
 SECTION 13.3. Application of Trust Money. Subject to Section 13.4, the Trustee or
Paying Agent shall hold in trust all U.S. Legal Tender and U.S. Government Obligations deposited with it pursuant to this Article 13, and shall apply the deposited U.S. Legal Tender and the money from U.S. Government Obligations in accordance with
this Indenture to the payment of the principal of and the interest on the Notes. The Trustee shall be under no obligation to invest said U.S. Legal Tender and U.S. Government Obligations, except as it may agree with the Issuers. 

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Legal Tender and
U.S. Government Obligations deposited pursuant to Section 13.2 or the principal and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes. 

Anything in this Article 13 to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuers from time to time upon the
Issuers’ request any U.S. Legal Tender and U.S. Government Obligations held by it as provided in Section 13.2 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

SECTION 13.4. Repayment to the Issuers. The Trustee and the Paying Agent shall pay to the Issuers upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years. After payment to the Issuers, Holders entitled to such money shall look to the Issuers for payment as general creditors unless an applicable law designates another
Person. 
 SECTION 13.5. Reinstatement. If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender and U.S. Government
Obligations in accordance with this Article 13 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuers’
obligations under this Indenture, and the Notes and the Guaranties shall be revived and reinstated as though no deposit had occurred pursuant to this Article 13 until such time as the Trustee or Paying Agent is permitted to apply all such U.S. Legal
Tender and U.S. Government Obligations in accordance with this Article 13; provided that if the Issuers have made any payment of interest on, or principal of, any Notes because of the reinstatement of its obligations, the Issuers shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the U.S. Legal Tender and U.S. Government Obligations held by the Trustee or Paying Agent.” 

  
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 ARTICLE 14 

SUCCESSOR CORPORATION 

SECTION 14.01. Addition of Article 14 to the Base Indenture 

The following shall be added to the Base Indenture as Article 14: 

ARTICLE 14 
 SUCCESSOR CORPORATION

 “SECTION 14.1. Consolidation, Merger and Sale of Assets. 

(a) The Parent shall not consolidate with or merge with or into, or sell, convey, transfer or otherwise dispose of all or substantially all of
its and its Subsidiaries’ (taken as a whole) property and assets (as an entirety or substantially an entirety in one transaction or a series of related transactions) to, any Person or permit any Person to merge with or into the Parent unless:

 (1) the Parent shall be the continuing Person, or the Person (if other than the Parent ) formed by such consolidation or
into which the Parent is merged or that acquired or leased such property and assets of the Parent shall be a corporation, limited liability company, partnership (including a limited partnership) or trust organized and validly existing under the laws
of the United States of America or any state or jurisdiction thereof and shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, all of the obligations of the Parent on its Guaranty and under this Indenture
(provided that in the case of a limited liability company, partnership (including a limited partnership) or trust, there shall also be a corporation organized and validly existing under the laws of the United States of America or any state or
jurisdiction thereof which shall expressly jointly with such limited liability company, partnership (including a limited partnership) or trust, assume, by a supplemental indenture, executed and delivered to the Trustee, all of the obligations of the
Parent on its Guaranty and under this Indenture); 
 (2) immediately after giving effect to such transaction, no Default or
Event of Default shall have occurred and be continuing; 
 (3) immediately after giving effect to such transaction and any
related financing transactions as if the same had occurred at the beginning of the applicable Four Quarter Period, on a pro forma basis the Issuers, or any Person becoming the successor obligor of the Notes, as the case may be, (a) could
Incur at least $1.00 of Indebtedness under paragraphs (a) and (c) of Section 10.6 or (b) could incur at least $1.00 of Indebtedness under paragraph (a) of Section 10.6 and the Interest Coverage Ratio would improve;
provided, however, that this clause (3) shall not apply to a consolidation or merger with or into a Wholly Owned Subsidiary; and 

(4) the Parent delivers to the Trustee an Officer’s Certificate (attaching the arithmetic computations to demonstrate
compliance with clause (3) above) and an Opinion of Counsel, in each case stating that such consolidation, merger or transfer and such supplemental indenture complies with this Section 14.1 and that all conditions precedent provided for
herein relating to such transaction have been complied with and, with respect to the Opinion of Counsel, that the supplemental indenture constitutes a valid and binding obligation enforceable against the Parent, or the Person (if other than the
Parent) formed by such consolidation or into which the Parent is merged or that acquired all or substantially all of the Parent’s and its Subsidiaries’ property and assets; 

provided, however, that clause (3) above does not apply if, in the good faith determination of the Board of Directors of the
Parent, whose determination shall be evidenced by a Board Resolution, the principal purpose of such transaction is to change the state of domicile of the Parent; provided further, however, that any such transaction shall not have as one of its
purposes the evasion of the foregoing limitations 

  
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 (b) Except as provided in Section 8.4, the Parent shall not permit the Issuers or any
Subsidiary Guarantor to consolidate with or merge with or into, or convey or transfer, in one transaction or a series of transactions, all or substantially all of its assets to any Person, unless: 

(1) (i) the resulting, surviving or transferee Person (if not such Subsidiary) shall be a Person organized and existing under
the laws of the jurisdiction under which such Issuer or Subsidiary was organized or under the laws of the United States of America, or any State thereof or the District of Columbia, and (ii) such Person shall expressly assume, by a supplemental
indenture, all the obligations of such Issuer or Subsidiary Guarantor, if any, under the Notes or its Subsidiary Guaranty, as applicable; provided, however, that the foregoing requirement in clause (ii) shall not apply in the case of a
Subsidiary Guarantor or all or substantially all of its assets (x) that has been disposed of in its entirety to another Person (other than to the Parent or an Affiliate of the Parent), whether through a merger, consolidation or sale of Capital
Stock or assets or (y) that, as a result of the disposition of all or a portion of its Capital Stock, ceases to be a Subsidiary, so long as, in both cases, in connection therewith the Parent provides an Officer’s Certificate to the Trustee
to the effect that the Parent shall comply with its obligations under Section 10.11; 
 (2) immediately after giving
effect to such transaction or transactions on a pro forma basis (and treating any Indebtedness which becomes an obligation of the resulting, surviving or transferee Person as a result of such transaction as having been issued by such Person
at the time of such transaction), no Default shall have occurred and be continuing; and 
 (3) the Parent delivers to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture, if any, complies with this Indenture and, with respect to the Opinion of Counsel, that the
supplemental indenture constitutes a valid and binding obligation enforceable against the Issuers, the Subsidiary Guarantors, the Parent and the surviving Persons. 

(c) Notwithstanding the foregoing, any Subsidiary Guarantor may (i) merge with an Affiliate of the Parent or a Subsidiary of the Parent or
another Subsidiary Guarantor solely for the purpose of changing the state of domicile of the Subsidiary Guarantor, (ii) merge with or into or transfer all or part of its properties and assets to another Subsidiary Guarantor, the Issuers or the
Parent or (iii) convert into a corporation, partnership, limited partnership, limited liability company or trust organized under the laws of the jurisdiction of organization of such Subsidiary Guarantor. 

(d) Upon any such consolidation, combination or merger of an Issuer or a Guarantor, or any such sale, conveyance, transfer or other disposition
of all or substantially all of the assets of an Issuer in accordance with this Section 14.1, in which such Issuer or such Guarantor is not the continuing obligor under the Notes or its Guaranty, the surviving entity formed by such consolidation
or into which such Issuer or such Guarantor is merged or the entity to which the sale, conveyance, transfer or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, such Issuer or such
Guarantor under this Indenture and, the Notes and the Guaranties with the same effect as if such surviving entity had been named therein as such Issuer or such Guarantor and such Issuer or such Guarantor, as the case may be, shall be released from
the obligation to pay the principal of and interest on the Notes or in respect of its Guaranty, as the case may be, and all of such Issuer’s or such Guarantor’s other obligations and covenants under the Notes, this Indenture and its
Guaranty, if applicable. 
 (e) Notwithstanding any of the foregoing and for the avoidance of doubt, the lease of all or substantially all of
the assets of the Parent and its Subsidiaries shall not be subject to this Section 14.1.” 

  
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 ARTICLE 15 

CO-ISSUERS 

The Notes shall initially be co-issued with Sabra Capital, which is a wholly owned subsidiary of the
Operating Partnership and does not have any substantial operations, assets or revenues. However, the obligations of Sabra Capital as a co-issuer of the Notes shall be automatically released and discharged if
Sabra Capital is not liable in respect of any obligations under either the 2021 Notes and the 2023 Notes or in respect of any indebtedness under the Credit Agreement (which release and discharge may be concurrent with the release and discharge of
Sabra Capital under the 2021 Notes and the 2023 Notes). Following such release and discharge, the Operating Partnership shall be the sole issuer of the Notes. The Parent shall deliver an Officer’s Certificate to the Trustee following such
release and discharge stating that such release and discharge has occurred. 
 ARTICLE 16 

ADDITIONAL TERMS OF THIS SUPPLEMENTAL INDENTURE 

SECTION 16.01. Interpretation of Base and Supplemental Indenture. 

The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects ratified and confirmed, and the Base
Indenture and this Supplemental Indenture shall be read, taken and construed as one and the same instrument. All provisions included in this Supplemental Indenture supersede any similar provisions included in the Base Indenture unless not
permitted by law. 
 SECTION 16.02. Successors and Assigns. 

All agreements of the Issuers and the Subsidiary Guarantors in this Supplemental Indenture, the Notes and the Guaranties shall bind their
respective successors. All agreements of the Trustee in this Supplemental Indenture shall bind its successor. 
 SECTION 16.03.
Severability. 
 To the extent permitted by applicable law, in case any one or more of the provisions in this Supplemental
Indenture, in the Notes or in the Guaranties shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall
not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 

SECTION 16.04. Governing Law; Waiver of Jury Trial. 

This Supplemental Indenture, the Notes and the Guaranties will be governed by and construed in accordance with the laws of the State of New
York. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Supplemental Indenture, the Notes, the
Guaranties or the transaction contemplated hereby. 
 SECTION 16.05. Effect of Headings. 

The Article and Section headings in this Supplemental Indenture are for convenience only and shall not be deemed to alter or affect the meaning
or interpretation of any provisions hereof. 
 SECTION 16.06. Duplicate Originals. 

All parties may sign any number of copies of this Supplemental Indenture. Each signed copy or counterpart shall be an original, but all of them
together shall represent the same agreement. Delivery of an executed counterpart of a signature page to this Supplemental Indenture by facsimile, .pdf transmission, email or other electronic means shall be effective as delivery of a manually
executed counterpart of this Supplemental Indenture. 

  
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 SIGNATURES 

IN WITNESS WHEREOF, the parties hereto have caused this Eighth Supplemental Indenture to be duly executed, all as of the date first above written. 

 

					
	 SABRA HEALTH CARE LIMITED PARTNERSHIP,
as an Issuer

 
 By: Sabra Health Care REIT, Inc., its general partner

		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  

					
	SABRA CAPITAL CORPORATION, 
as an Issuer
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  

					
	SABRA HEALTH CARE REIT, INC., 
as Parent and a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA 1717 PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA BEAUMONT PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA BEAVERCREEK PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CA HOLDCO, INC.,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CALIFORNIA II, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA CANADIAN GP I INC.,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CANADIAN HOLDINGS, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CANADIAN PROPERTIES I, LIMITED PARTNERSHIP,
	as a Guarantor
	
	By: Sabra Canadian GP I Inc., its General Partner
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CLARKSVILLE PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA COLORADO, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA DEERFIELD PREFERRED EQUITY, LLC,
	as a Guarantor

  

					
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA HAGERSTOWN, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE L.L.C.,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE DELAWARE, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE FRANKENMUTH, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS I, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  

					
	SABRA HEALTH CARE HOLDINGS II, LLC,
	as a Guarantor
		
	By:	 	 /s/ Harold W. Andrews, Jr.

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA HEALTH CARE HOLDINGS III, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS IV, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS VI, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE INVESTMENTS, LP,
	as a Guarantor
	
	By: Sabra Phoenix TRS Venture, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE NORTHEAST, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE PENNSYLVANIA, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA HEALTH CARE VIRGINIA, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE VIRGINIA II, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA LAKE DRIVE, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MADEIRA PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MCCORDSVILLE PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MICHIGAN, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA NEW BRAUNFELS PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NEW MEXICO, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NEW MEXICO II, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NORTH CAROLINA, L.P.,
	as a Guarantor
	
	By: Sabra North Carolina GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NORTH CAROLINA GP, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA PHOENIX TRS VENTURE, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA PHOENIX TRS VENTURE II, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA PHOENIX WISCONSIN, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS GP, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS HOLDINGS, L.P.,
	as a Guarantor
	
	By: Sabra Texas Holdings GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS HOLDINGS GP, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SABRA TEXAS PROPERTIES, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES II, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES III, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES IV, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TRS HOLDINGS, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
					
	SB NEW MARTINSVILLE, LLC,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SBRAREIT CANADIAN GP V INC.,
	as a Guarantor
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SBRAREIT CANADIAN PROPERTIES V, LIMITED PARTNERSHIP,
	as a Guarantor
	
	By: SbraREIT Canadian GP V Inc., its General Partner
		
	By:	 	/s/ Harold W. Andrews, Jr.
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 [Signature Page to
Eighth Supplemental Indenture] 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Trustee
		
	        By:	 	/s/ Stefan Victory
		 	Name: Stefan Victory
		 	Title: Vice-President

  
 [Signature Page to
Eighth Supplemental Indenture] 

 Form of Initial Note 

(FACE OF NOTE) 
 THIS NOTE IS A
GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF
THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

  
 A-1 

 SABRA HEALTH CARE LIMITED PARTNERSHIP 

SABRA CAPITAL CORPORATION 
 4.80%
Senior Notes due 2024 
 CUSIP No. 
 No.
[    ] $[                ] 
 SABRA
HEALTH CARE LIMITED PARTNERSHIP, a Delaware limited partnership, and SABRA CAPITAL CORPORATION, a Delaware corporation (the “Issuers”), for value received promise to pay to Cede & Co., or its registered assigns, the
principal sum of [     ] DOLLARS [or such other amount as is provided in a schedule attached hereto]1 on June 1, 2024. 

Interest Payment Dates: June 1 and December 1, commencing December 1, 2019. 

Record Dates: May 15 and November 15. 

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at
this place. 
 [Signature page follows] 

 

	1 	 This language should be included only if the Note is issued in global form. 

  
 A-2 

 IN WITNESS WHEREOF, the Issuers have caused this Note to be signed manually or by facsimile
by its duly authorized officer. 
 Dated: 
  

			
	SABRA CAPITAL CORPORATION, 
as an Issuer
		
	By:	 	 
		 	Name:
		 	Title:
	
	SABRA HEALTH CARE LIMITED PARTNERSHIP,
as an Issuer
		
	By:	 	 Sabra Health Care REIT, Inc.,
 its General
Partner

		
	By:	 	 
		 	Name:
		 	Title:

  
 A-3 

 [FORM OF] TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the 4.80% Senior Notes due 2024 described in the within-mentioned Indenture. 

Dated: 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Trustee
		
	By	 	 
		 	Authorized Signatory

  
 A-4 

 (Reverse of Note) 

4.80% Senior Notes due 2024 

Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

SECTION 1. Interest. Sabra Health Care Limited Partnership, a Delaware limited partnership, and Sabra Capital Corporation, a Delaware
corporation (the “Issuers”), promise to pay interest on the principal amount of this Note at 4.80% per annum from May 29, 2019, until maturity. The Issuers will pay interest semi-annually on June 1 and December 1 of
each year (each an “Interest Payment Date”), commencing December 1, 2019. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from May 29, 2019. The
Issuers shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the Notes; it shall pay interest on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. If any Interest Payment Date, maturity date or Redemption Date is not a Business Day, the required payment will be made on the next succeeding day that is a Business Day, without any interest or other payment in respect of the payment
subject to delay, with the same force and effect as if made on such Interest Payment Date, maturity date or Redemption Date, as the case may be. 

SECTION 2. Method of Payment. The Issuers will pay interest on the Notes to the Persons who are registered Holders at the close of
business on the May 15 or November 15 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 3.7 of the Indenture
with respect to defaulted interest. The Notes will be issued in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The Issuers shall pay principal, premium, if any, and interest on the Notes in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and private debts. Principal, premium, if any, and interest on the Notes will be payable at the office or agency of the Issuers maintained for such purpose
except that, at the option of the Issuers, the payment of interest may be made by check mailed to the Holders at their respective addresses set forth in the register of Holders of Notes. Until otherwise designated by the Issuers, the Issuers’
office or agency in New York will be the office of the Trustee maintained for such purpose. 
 SECTION 3. Paying Agent and Security
Registrar. Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will act as Paying Agent and Security Registrar. The Issuers may change any Paying Agent or Security Registrar without notice to any Holder. Except as
provided in the Indenture, the Issuers or any of their Subsidiaries may act in any such capacity. 
 SECTION 4. Indenture. The
Issuers issued the Notes under an Indenture, as of dated as of May 23, 2013, between the Issuers, Sabra Health Care REIT, Inc., a Maryland corporation (the “Parent”), and Wells Fargo Bank, National Association, a national
banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”) (the “Base Indenture”), as supplemented by the Eighth Supplemental Indenture, dated as of
May 29, 2019 (the “Supplemental Indenture,” and, collectively, the “Indenture,” which terms shall have the meanings assigned to it in such instrument), by and among the Issuers, the Parent, the other Guarantors
party thereto and the Trustee. Subject to the terms of the Indenture, the Issuers shall be entitled to issue Additional Notes. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a
statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. 

SECTION 5. Optional Redemption. The Notes will be redeemable at the option of the Issuers, in whole or in part at any time and from
time to time, upon not less than 15 days’ nor more than 60 days’ notice. If the Notes are redeemed prior to the Par Call Date, the redemption price will be equal to the greater of: 

  
 A-5 

 (1) 100% of the principal amount of the Notes being redeemed; and 

(2) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes being redeemed that would be
due if the Notes matured on the Par Call Date (exclusive of interest accrued to the applicable redemption date) discounted to such redemption date on a semiannual basis, assuming a 360-day year consisting of
twelve 30-day months, at the Adjusted Treasury Rate; 
 plus, in each case of (1) and (2)
above, accrued and unpaid interest thereon to, but not including, the applicable redemption date. 
 If the Notes are redeemed on or after
the Par Call Date, the redemption price will be equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date. 

SECTION 6. Notice of Redemption. Notice of redemption will be mailed by first-class mail or as otherwise provided in accordance with
the procedures of the Depository at least 15 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a satisfaction or discharge of the Indenture. No Notes of $2,000 or less shall be redeemed in part. On and after the Redemption Date interest ceases to accrue on
Notes or portions thereof called for redemption. 
 SECTION 7. Mandatory Redemption. The Issuers shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes. 
 SECTION 8. Denominations, Transfer, Exchange. The Notes
are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Security Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuers may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Issuers and the Security
Registrar are not required to transfer or exchange any Note selected for redemption. Also, the Issuers and the Security Registrar are not required to transfer or exchange any Notes for a period of 15 days before a selection of Notes to be
redeemed. 
 SECTION 9. Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes. 

SECTION 10. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture and the Notes may be amended or supplemented
with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any existing Default or compliance with any provision may be waived with the consent of the Holders of a majority in
aggregate principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture, the Notes and the Guaranties as provided in the Indenture. 

SECTION 11. Defaults and Remedies. If an Event of Default occurs and is continuing (other than as specified in clauses (7) and (8)
of Section 5.1 that occurs with respect to the Parent or the Issuers), the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare the principal of, premium, if any, and accrued interest on the Notes
to be due and payable immediately in accordance with the provisions of Section 5.2. Notwithstanding the foregoing, in the case of an Event of Default arising from clause (7) or (8) of Section 5.1, with respect to the Parent or the
Issuers, all outstanding Notes will become due and payable without further action or notice. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority
in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default if it determines that withholding notice is in their
interest in accordance with Section 6.2. The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default and its
consequences under the Indenture except a Default in the payment of principal of, or interest on, any Note as specified in Section 5.1(1) and (2). 

  
 A-6 

 SECTION 12. Restrictive Covenants. The Indenture contains certain covenants as set
forth in Article 10 of the Indenture. 
 SECTION 13. No Recourse Against Others. No recourse for the payment of the principal of,
premium, if any, or interest on any of the Notes or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Parent, the Issuers or the Guarantors in the Indenture, or in
any of the Notes or Guaranties or because of the creation of any Indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Parent, the Issuers or the Guarantors or
of any successor Person thereof. Each Holder, by accepting the Notes, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Notes. 

SECTION 14. Co-Issuers. The Notes shall be initially
co-issued with Sabra Capital, which is a wholly owned subsidiary of the Operating Partnership and does not have any substantial operations, assets or revenues. However, the obligations of Sabra Capital as a co-issuer of the Notes shall be automatically released and discharged if Sabra Capital is not liable in respect of any obligations under either the 2021 Notes and the 2023 Notes or in respect of any indebtedness
under the Credit Agreement (which release and discharge may be concurrent with the release and discharge of Sabra Capital under the 2021 Notes and the 2023 Notes). Following such release and discharge, the Operating Partnership shall be the sole
issuer of the Notes. 
 SECTION 15. Guaranties. This Note will be entitled to the benefits of certain Guaranties made for the benefit
of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders. 

SECTION 16. Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. 
 SECTION 17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such
as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

SECTION 18. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuers have caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

SECTION 19. Governing Law. This Note shall be governed by, and construed in accordance with, the laws of the State of New York.

 The Issuers will furnish to any Holder upon written request and without charge a copy of the Indenture. 

  
 A-7 

 ASSIGNMENT FORM 

I or we assign and transfer this Note to 
  

 
  
  

 
 (Print or type name, address and zip code of assignee
or transferee) 
  
  

(Insert Social Security or other identifying number of assignee or transferee) 

and irrevocably
appoint                                        
                                         
                agent to transfer this Note on the books of the Issuers. The agent may substitute another to act for him. 

 

			
	Dated:	  	Signed:                                     
                                       
		  	                    (Sign exactly as name appears on the other side of
		  	                    this Note)
	Signature Guarantee:	  	                                      
                                         
                     
		  	Participant in a recognized Signature Guarantee Medallion
		  	Program (or other signature guarantor program reasonably
		  	acceptable to the Trustee)

  
 A-8 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1 
 The following exchanges of a part of this Global Note for an interest in another Global
Note or for a Physical Note, or exchanges of a part of another Global Note or Physical Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange
	 	 Amount of

decrease in
Principal Amount

of
The Global Note
	 	 Amount of

increase in
Principal Amount

of
this Global Note
	  	 Principal Amount

of
this Global Note
following such

decrease
(or increase)
	  	 Signature of
authorized officer

of
Trustee of Note
custodian

  

 

	1 	 This schedule should be included only if the Note is issued in global form. 

  
 A-9 

 GUARANTY 

For value received, each of the undersigned (including any successor Person under the Indenture (as defined below)) hereby unconditionally
guarantees, jointly and severally, to the extent set forth in the Indenture to the Holder of this Note the payment of principal, premium, if any, and interest on this Note in the amounts and at the times when due and interest on the overdue
principal, premium, if any, and interest, if any, of this Note when due, if lawful, and, to the extent permitted by law, the payment or performance of all other obligations of the Issuers under the Indenture or the Notes, to the Holder of this Note
and the Trustee, all in accordance with and subject to the terms and limitations of this Note, the Indenture, including Article 8 thereof, and this Guaranty. This Guaranty will become effective in accordance with Article 8 of the Indenture and its
terms shall be evidenced therein. The validity and enforceability of any Guaranty shall not be affected by the fact that it is not affixed to any particular Note. 

Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture dated as of May 23, 2013, between
the Issuers, Sabra Health Care REIT, Inc., a Maryland corporation (the “Parent”), and Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States of America, as
trustee (the “Trustee”) (the “Base Indenture”), as supplemented by the Eighth Supplemental Indenture, dated as of May 29, 2019 (the “Supplemental Indenture,” and collectively, the
“Indenture,” which terms shall have the meanings assigned to it in such instrument), among Sabra Health Care Limited Partnership, a Delaware limited partnership, and Sabra Capital Corporation, a Delaware corporation (each, an
“Issuer,” and together, the “Issuers”), the Parent, each of the other Guarantors party thereto and the Trustee. 

Each Subsidiary Guarantor’s obligation to guarantee the Notes will be released under certain circumstances, including if such Subsidiary
Guarantor is not a guarantor or is not otherwise liable in respect of any obligations under any Credit Facility. The obligations of the undersigned to the Holders of Notes and to the Trustee pursuant to this Guaranty and the Indenture are expressly
set forth in Article 8 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guaranty and all of the other provisions of the Indenture to which this Guaranty relates. 

No director, officer, employee, incorporator, stockholder or controlling person or any successor Person thereof of any Guarantor, as such,
shall have any liability for any obligations of such Guarantors under such Guarantors’ Guaranty or the Indenture or for any claim based on, in respect of, or by reason of, such obligation or its creation. 

This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York. 

In addition to the release of Subsidiary Guarantors as described above, this Guaranty is subject to release upon the terms set
forth in the Indenture. 

  
 B-1 

 IN WITNESS WHEREOF, the Guarantor has caused its Guaranty to be duly executed on this 29th day of May 2019. 
  

					
	SABRA HEALTH CARE REIT, INC.,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA 1717 PREFERRED EQUITY, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA BEAUMONT PREFERRED EQUITY, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA BEAVERCREEK PREFERRED EQUITY, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CA HOLDCO, INC.,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CALIFORNIA II, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-2 

 
					
	SABRA CANADIAN GP I INC.,
	as a Guarantor
		
	By:	 	  

		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CANADIAN HOLDINGS, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CANADIAN PROPERTIES I, LIMITED PARTNERSHIP,
as a Guarantor
	
	By: Sabra Canadian GP I Inc., its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA CLARKSVILLE PREFERRED EQUITY, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA COLORADO, LLC,
as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  

					
	SABRA DEERFIELD PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	        
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-3 

 
					
	SABRA HAGERSTOWN, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE L.L.C.,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE DELAWARE, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE FRANKENMUTH, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS I, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS II, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary

  
 B-4 

 
					
	SABRA HEALTH CARE HOLDINGS III, LLC,
	as a Guarantor
		
	By:	 	 
		 	 Name: Harold W. Andrews, Jr.

Title:   Executive Vice President, Chief Financial Officer and Secretary

	
	
	SABRA HEALTH CARE HOLDINGS IV, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE HOLDINGS VI, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE INVESTMENTS, LP,
	as a Guarantor
	
	By: Sabra Phoenix TRS Venture, LLC, its General Partner
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE NORTHEAST, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE PENNSYLVANIA, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name: Harold W. Andrews, Jr.
		 	Title:   Executive Vice President, Chief Financial Officer and Secretary

  
 B-5 

 
					
	SABRA HEALTH CARE VIRGINIA, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA HEALTH CARE VIRGINIA II, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA LAKE DRIVE, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MADEIRA PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MCCORDSVILLE PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA MICHIGAN, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-6 

 
					
	SABRA NEW BRAUNFELS PREFERRED EQUITY, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NEW MEXICO, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NEW MEXICO II, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NORTH CAROLINA, L.P.,
	as a Guarantor
	
	 By: Sabra North Carolina GP, LLC,

its General Partner

		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA NORTH CAROLINA GP, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA PHOENIX TRS VENTURE, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-7 

 
					
	SABRA PHOENIX TRS VENTURE II, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA PHOENIX WISCONSIN, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS GP, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS HOLDINGS, L.P.,
	as a Guarantor
	
	By: Sabra Texas Holdings GP, LLC, its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS HOLDINGS GP, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-8 

					
	SABRA TEXAS PROPERTIES II, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES III, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TEXAS PROPERTIES IV, L.P.,
	as a Guarantor
	
	By: Sabra Texas GP, LLC, its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SABRA TRS HOLDINGS, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SB NEW MARTINSVILLE, LLC,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-9 

 
					
	SBRAREIT CANADIAN GP V INC.,
	as a Guarantor
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary
	
	SBRAREIT CANADIAN PROPERTIES V, LIMITED PARTNERSHIP,
	as a Guarantor
	
	By: SbraREIT Canadian GP V Inc., its General Partner
		
	By:	 	 
		 	Name:	 	Harold W. Andrews, Jr.
		 	Title:	 	Executive Vice President, Chief Financial Officer and Secretary

  
 B-10 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Trustee
		
	By:	 	 
		 	Name:
		 	Title:

  
 B-11a101nobilissecondforbear

                                                                EXECUTION VERSION                                                                                              SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT, CONSENT AND                     FOURTH AMENDMENT TO CREDIT AGREEMENT                                                                                    P A R T I E S:         This SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT, CONSENT  AND FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Second Forbearance  Agreement”) is dated, effective as of April 30, 2019 (subject to satisfaction of each condition precedent  set forth at Section 4 hereof, the “Effective Date”), among NORTHSTAR HEALTHCARE  ACQUISITIONS, L.L.C., a Delaware limited liability company (the “Borrower”), NOBILIS HEALTH  CORP., a British Columbia corporation (the “Parent”), NORTHSTAR HEALTHCARE HOLDINGS,  INC., a Delaware corporation (“Holdings”), the other Loan Parties (as defined in the Credit Agreement  (defined below)) party hereto, COMPASS BANK (in its individual capacity, “Compass Bank”), in its  capacity as Swingline Lender, LC Issuing Lender and the Administrative Agent (in such capacity for  itself and the other Lenders, the “Administrative Agent”), and the Lenders party hereto. Unless otherwise  indicated, all capitalized terms used herein and not otherwise defined herein shall have the respective  meanings provided to such terms in the Credit Agreement referred to below.                                       R E C I T A L S:         A.  WHEREAS, the Borrower, the Parent, Holdings, the other Loan Parties party thereto, the            Lenders party thereto (the “Lenders”), the Administrative Agent and the other parties thereto            have entered into that certain Credit Agreement, dated as of October 28, 2016 (as amended by            Amendment No. 1 to Credit Agreement and Waiver, dated as of March 3, 2017, as further            amended by Amendment No. 2 to Credit Agreement, dated as of November 15, 2017, as            further amended by the Second Limited Conditional Waiver and Amendment No. 3 to Credit            Agreement, dated effective as of December 31, 2018, and as from time to time further            amended, amended and restated, supplemented or otherwise modified, the “Credit            Agreement”);         B.  WHEREAS, the Loan Parties acknowledge and agree that certain Events of Default as            described below (collectively, the “Specified Defaults”) have occurred and are continuing            under Section 8.1 of the Credit Agreement due to the Borrower’s failure to comply with            (i) the financial covenants in Section 7.11(a) and Section 7.11(b) of the Credit Agreement            (due to adjustments to the Borrower’s accounts receivable as communicated to the Lenders in            the Borrower’s presentation, dated November 14, 2018, and by Borrower’s financial advisors            in their interim report, dated December 28, 2018, which accounts receivable adjustments and            fiscal period of adjustments are subject to final determination by the Borrower) and (ii) the            restrictions on Restricted Payments contained in Section 7.6 of the Credit Agreement due to            certain Restricted Payments made to non-Loan Parties prior to November 15, 2018;          C. WHEREAS, the Administrative Agent maintains that the Borrower failed to comply with the            requirements of the following (collectively the “Disputed Specified Defaults”), while the            Loan Parties maintain that the following Disputed Specified Defaults are not Events of            Default under the Credit Agreement: (i) the requirements of Section 6.12(a) of the Credit            Agreement in respect of NHC Network, LLC; and (ii) the requirement of Nobilis Vascular            Texas, LLC to make payments when due under that certain Convertible Promissory Note,            dated March 8, 2017, executed by Nobilis Vascular Texas, LLC and made payable to the            order of Carlos R. Hamilton III, M.D.;      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 1   502196916 v6 1205867.00001  

 

      D.  WHEREAS, as a result of the Specified Defaults, the Administrative Agent has the right to            exercise all rights and remedies available to it under the Credit Agreement, the other Loan            Documents and applicable law;          E. WHEREAS, the Loan Parties, the Administrative Agent and certain of the Lenders party            thereto entered into that certain Limited Waiver to Credit Agreement, dated effective as of            November 15, 2018 (the “First Limited Waiver”), pursuant to which, subject to the terms and            conditions set forth in the First Limited Waiver, those certain Specified Defaults (as defined            in the First Limited Waiver) were temporarily waived for the Waiver Period set forth therein            (as defined in the First Limited Waiver, the “First Waiver Period”);         F.  WHEREAS, the Loan Parties, Administrative Agent and certain of the Lenders party thereto            entered into that certain Second Limited Conditional Waiver and Amendment No. 3 to Credit            Agreement, dated effective as of December 31, 2018 (the “Second Limited Waiver”),            pursuant to which, subject to the terms and conditions set forth in the Second Limited            Waiver, those certain Specified Defaults (as defined in the Second Limited Waiver) were            temporarily waived for the Second Waiver Period set forth therein (as defined in the Second            Limited Waiver, the “Second Waiver Period”);         G.  WHEREAS, the Loan Parties, the Administrative Agent and certain of the Lenders party            thereto entered into that certain Third Limited Conditional Waiver to Credit Agreement,            dated as of January 11, 2019 (the “Third Limited Waiver”), pursuant to which, subject to the            terms and conditions set forth in the Third Limited Waiver, those certain Specified Defaults            (as defined in the Third Limited Waiver) and those certain Disputed Specified Defaults (as            defined in the Third Limited Waiver) were temporarily waived for the Third Waiver Period            set forth therein (as defined in the Third Limited Waiver, the “Third Waiver Period”);         H.  WHEREAS, the Loan Parties, the Administrative Agent and certain of the Lenders party            thereto entered into that certain Fourth Limited Conditional Waiver to Credit Agreement,            dated as of February 29, 2019 (the “Fourth Limited Waiver” and collectively with the First            Limited Waiver, the Second Limited Waiver, and the Third Limited Waiver, the “Prior            Limited Waivers”), pursuant to which, subject to the terms and conditions set forth in the            Fourth Limited Waiver, those certain Specified Defaults (as defined in the Fourth Limited            Waiver) and those certain Disputed Specified Defaults (as defined in the Fourth Limited            Waiver) were temporarily waived for the Fourth Waiver Period set forth therein (as defined            in the Fourth Limited Waiver, the “Fourth Waiver Period”);         I.  WHEREAS, the Loan Parties represent to the Administrative Agent that they have dissolved            MPDSC Management, LLC, a Texas limited liability company, during the Third Waiver            Period (thereby curing the Specified Default (as defined in the Third Limited Waiver) that            had occurred due to the failure to satisfy the requirements of Section 6.12(a) of the Credit            Agreement in respect of such entity);          J.  WHEREAS, on March 29, 2019, the Administrative Agent provided a notice of default and            reservation of rights letter (the “Default Letter”) to the Borrower, Parent and Holdings that            Borrower had (i) failed to pay that certain demand invoice in the amount of $104,475.50 from            K&L Gates, LLP in its capacity as counsel to the Administrative Agent, which demand            invoice was delivered to Borrower on or about March 5, 2019, which failure was an Event of            Default under the Credit Agreement pursuant to Section 2 of the Fourth Limited Waiver (the            "Invoice Payment Event of Default"), (ii) failed to comply with requirements of the Credit            Agreement and the Fourth Limited Waiver in respect of the Disposition of the Loan Parties'            equity interest in Mountain West Surgery Center, LLC (the "Disposition Defaults"), and that     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 2   502196916 v6 1205867.00001  

 

          as a result of the Invoice Payment Event of Default and Disposition Defaults, the Fourth            Waiver Period had automatically terminated;          K. WHEREAS, the First Waiver Period, Second Waiver Period, Third Waiver Period and Fourth            Waiver Period (due to the Invoice Payment Event of Default and the Disposition Defaults)            have each ended on or before the Effective Date;           L. WHEREAS, the Borrower has failed to pay the principal payments that became due on            March 29, 2019 under the Credit Agreement which constituted an immediate Event of            Default (the “Principal Payment Event of Default”);         M.  WHEREAS, the Borrower has failed (i) to pay the interest payment that became due on            March 26, 2019 under the Credit Agreement, which became an Event of Default when it was            not paid on March 29, 2019, (ii) to pay the interest payments that became due on March 29,            2019 under the Credit Agreement, which became Events of Default when not paid on April 1,            2019, (iii) to pay the LC Fee that became due and payable on April 10, 2019 under the Credit            Agreement, which became an Event of Default when not paid on April 13, 2019 (collectively,            the “Other Payment Events of Default” and collectively with the Invoice Payment Event of            Default, the Disposition Defaults, and the Principal Payment Event of Default, the            “Additional Events of Default”);         N.  WHEREAS, the Specified Defaults and Additional Events of Default are continuing and have            not been waived by the Administrative Agent or the Lenders except as expressly waived            during the term of and pursuant to the Prior Limited Waivers and are not subject to cure by            the Loan Parties;          O. WHEREAS, the Administrative Agent deems the Disputed Specified Defaults to be Events of            Default under the Credit Agreement that are continuing, and the Disputed Specified Defaults            have not been waived by the Administrative Agent or the Lenders, except as expressly            waived in writing during the term of and pursuant to the Prior Limited Waivers and are not            subject to cure by the Loan Parties;          P. WHEREAS, the Loan Parties, the Administrative Agent and certain of the Lenders party thereto            entered into that certain Limited Conditional Forbearance Agreement, dated effective as of            March 31, 2019 (the “First Forbearance Agreement”), pursuant to which and subject to the terms            and conditions set forth in the First Forbearance Agreement, the Administrative Agent and the            Lenders party to the First Forbearance Agreement agreed to forbear from exercising rights and            remedies in respect of those certain Specified Events of Default (as defined in the First            Forbearance Agreement) during the Forbearance Period (as defined in the First Forbearance            Agreement, the “First Forbearance Period”) which First Forbearance Period expired on April 30,            2019;          Q. WHEREAS, the First Forbearance Period has ended on or before the Effective Date;          R. WHEREAS, the Loan Parties have requested that the Administrative Agent and the Lenders            continue to forbear temporarily from exercising certain of their respective rights and remedies            under the Credit Agreement, the other Loan Documents, and applicable law;           S. WHEREAS, the Administrative Agent and the Lenders have agreed to temporarily forbear from            exercising certain rights and remedies under the Credit Agreement, the other Loan Documents,            and applicable law, subject to the terms, conditions, limitations and covenants contained in this            Second Forbearance Agreement;     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 3   502196916 v6 1205867.00001  

 

      T.  WHEREAS, the Loan Parties have further requested that the Administrative Agent and Lenders            (i) approve certain amendments to the Credit Agreement to allow the Loan Parties to have the            ability to incur certain super priority indebtedness and other obligations (collectively, the “Super            Priority Obligations”) to be provided by Compass Bank, in its capacity as super priority agent            (the “Super Priority Agent”), and certain of the Lenders, in their capacities as super priority            lenders (the “Super Priority Lenders”), in each case pursuant to a super priority credit facility            (the “Super Priority Credit Facility” and, together with the documents to be delivered thereunder,            the “Super Priority Loan Documents”), (ii) consent to the Administrative Agent entering into a            subordination agreement in form acceptable to the Administrative Agent by which the            Obligations and the Liens securing the Obligations will be subordinated to the Super Priority            Obligations (the “Super Priority Subordination Agreement”) and (iii) consent under the Credit            Agreement and the other Loan Documents to the Loan Parties entering into the Super Priority            Loan Documents and the Super Priority Subordination Agreement; and          U. WHEREAS, the Administrative Agent and the Lenders party hereto have (i) agreed to approve            the amendments to the Credit Agreement to permit the Super Priority Credit Facility, (ii) agreed            to consent to the Administrative Agent, in such capacity, entering into the Super Priority            Subordination Agreement and (iii) agreed to consent to the Loan Parties entering into the Super            Priority Credit Agreement and the Super Priority Loan Documents, in each case subject to the            terms, conditions, limitations and covenants contained in this Second Forbearance Agreement.                                   ACKNOWLEDGMENTS:                (a)    Each of the Loan Parties hereby acknowledges and agrees to the accuracy of all         Recitals included in this Second Forbearance Agreement.                (b)    Each of the Loan Parties acknowledges and agrees that as of the date hereof,         neither the Administrative Agent nor the Lenders have any obligation to make Loans or otherwise         extend credit to, or for the benefit of, the Loan Parties.                (c)    To the extent that there is a conflict between the terms of this Second         Forbearance Agreement and the terms of the Credit Agreement or the other Loan Documents, the         terms of this Second Forbearance Agreement shall govern.                (d)    Each of the Loan Parties hereby acknowledges and agrees that this Second         Forbearance Agreement, the First Forbearance Agreement, and each of the Prior Limited Waivers         are Loan Documents.                (e)    Each of the Loan Parties acknowledges and agrees:                       (i) that as of April 30, 2019 subject to additions and other adjustments as permitted               under the Loan Documents, the aggregate balance of the outstanding Obligations under the               Credit Agreement is equal to $128,715,468.18, and that the respective balances of the               various Loans and the LC Obligations as of such date were equal to the following:                Term A Loans      $47,206,250.00                Term B Loans       $47,500,000.00                Revolving Loans (excluding LC Obligations)     $28,500,000.00                LC Obligations      $  1,500,000.00     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 4   502196916 v6 1205867.00001  

 

             Interest and LC Fees and Unused Fees           $   4,009,218.18                TOTAL      $128,715,468.18                (ii) that the foregoing amounts do not include interest accruing after April 30, 2019,        additional fees, expenses and other amounts that are chargeable or otherwise reimbursable under the        Credit Agreement and the other Loan Documents; and                (iii) that the above described amounts are not subject to any offset, reduction, counterclaim         or defense by the Loan Parties.                (f)    Each of the parties hereto (including the Loan Parties) acknowledges and agrees that         the Default Rate continues to apply to the Obligations as set forth in the First Forbearance         Agreement.                                       AGREEMENTS          NOW, THEREFORE, in consideration of the premises herein contained and other good and  valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto, intending to  be legally bound, agree to the above Recitals and Acknowledgments, and further agree as follows:          1.    DEFINITIONS.  All capitalized terms used but not otherwise defined in this Second  Forbearance Agreement shall have the meanings ascribed to them in the Credit Agreement.          2.    SECOND FORBEARANCE PERIOD AND FORBEARANCE FEE.                2.1.   Second Forbearance Period.  Subject to the terms and conditions set forth in this  Second Forbearance Agreement and Loan Parties’ recitals, acknowledgments and agreements set forth above,  and expressly conditioned upon the absence of any Events of Default or Defaults (other than Specified  Defaults, Additional Events of Default, and the Disputed Specified Defaults, collectively the “Specified  Events of Default”) under the Credit Agreement, the other Loan Documents or this Second Forbearance  Agreement, and satisfaction and fulfillment of each of the conditions precedent set forth in Section 4 below,  the Administrative Agent and the Lenders agree (or are otherwise bound pursuant to the terms hereof) to  forbear from (a) demanding payment in full of all Obligations (including principal, interest, fees, expenses, or  any other amount due under the Credit Agreement or other Loan Documents and (b) exercising their  respective rights and remedies under the Credit Agreement and other comparable provisions of the other  Loan Documents solely as a result of the existence and continuation of the Specified Events of Default, in  each instance for a period (the “Second Forbearance Period”) beginning on the date on which each of the  conditions precedent set forth in Section 4 below is satisfied and expiring on the earliest of (i) the occurrence  of an Event of Default during the Second Forbearance Period other than (A) the Specified Events of  Default or (B) any Event of Default that occurs due to the failure of the Loan Parties to comply with  Section 7.11 of the Credit Agreement (“Financial Covenant Event of Default”), (ii) any Loan Party’s  actual knowledge of an Event of Default (other than the Specified Events of Default) that occurred prior  to the Second Forbearance Period and that has not been cured within three (3) Business Days of a Loan  Party obtaining actual knowledge of such Event of Default, and (iii) June 14, 2019.                2.2.   Forbearance Fee. The Loan Parties hereby agree that a forbearance fee in the  amount of $52,500 (the “Forbearance Fee”) shall be fully earned on the Forbearance Effective Date and  shall be due and payable to the Administrative Agent for the benefit of the Lenders on the Forbearance  Effective Date.  Any unpaid portion of the Forbearance Fee not paid when due shall be added to and  constitute a part of the Obligations.  The Loan Parties hereby acknowledge and agree that such      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 5   502196916 v6 1205867.00001  

 

Forbearance Fee is non-refundable and is in addition to any other fees payable by the Loan Parties under  the Credit Agreement or any other Loan Document.                2.3    No Waiver/Cure Upon Termination of Second Forbearance Period.  Nothing in this  Second Forbearance Agreement shall be construed to be a waiver of any Default or Event of Default,  including, without limitation, the Specified Events of Default, and upon termination of the Second  Forbearance Period, whether at the stated termination thereof or earlier as the result of the occurrence of a  Default or Event of Default that results in the termination of the Second Forbearance Period in accordance  with Section 2.1 above, each of the Specified Events of Default, and each other Default or Event of Default  that shall have actually occurred shall be continuing without waiver by the Administrative Agent or cure by  the Loan Parties.                2.4.   Limitation of Forbearance.  Without limiting the forbearance contained in Section  2.1 above, for purposes of determining the Loan Parties’ compliance with their respective representations,  warranties, covenants and agreements set forth in the Credit Agreement and the other Loan Documents one  or more Defaults and Events of Default shall be deemed continuing at all times notwithstanding the existence  and continuation of the Second Forbearance Period agreed to hereunder.          3.    AMENDMENTS TO CREDIT AGREEMENT; CONSENT AND CONSENT FEE.           (a)    Super Priority Amendments to Credit Agreement.  On the Effective Date and subject to  full and timely satisfaction of the conditions precedent set forth in Section 4 hereof and the accuracy of  the representations and warranties set forth in Section 7 hereof, the Credit Agreement shall be amended as  follows:                (i)    Section 1.1 of the Credit Agreement is hereby amended by (i) adding new         definitions of “Required Super Priority Lenders”, “Super Priority Agent”, “Super Priority Credit        Agreement”, “Super Priority Loan Documents”, “Super Priority Loans”, and “Super Priority        Subordination Agreement” as stated below in the appropriate alphabetical order, and (ii)        amending and restating the terms “Change of Control”, “Material Contract” and “Permitted        Physician Equity Transfers” to read in their entirety as follows.                  “Change of Control” means an event or series of events by which:                (a)    at any time, Parent shall fail to own one hundred percent (100%) of the Equity        Interests of Holdings free and clear of all Liens, rights, options, warrants or other similar        agreements or understanding, other than Liens in favor of the Administrative Agent and Liens in        favor of the Super Priority Agent;                (b)    at any time, Holdings shall fail to own one hundred percent (100%) of the Equity        Interests of the Borrower free and clear of all Liens, rights, options, warrants or other similar        agreements or understanding, other than Liens in favor of the Administrative Agent and Liens in        favor of the Super Priority Agent;                (c)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of        the Securities Exchange Act of 1934, but excluding (i) Dr. Donald Kramer, his immediate family        members, and his and their heirs, and trusts that are under the control of any of the foregoing, (ii)        any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its        capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the        “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of        1934, except that a “person” or “group” shall be deemed to have “beneficial ownership” of all        Equity Interests that such “person” or “group” has the right to acquire, whether such right is     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 6   502196916 v6 1205867.00001  

 

      exercisable immediately or only after the passage of time (such right, an “option right”)), directly        or indirectly, of more than 35% of the Equity Interests of Parent entitled to vote in the election of        members of the board of directors (or equivalent governing body) of Parent, or (iii) during any        period of twelve consecutive months, a majority of the members of the board of directors or other        equivalent governing body of the Parent cease to be composed of individuals (1) who were        members of that board or equivalent governing body on the first day of such period, (2) whose        election or nomination to that board or equivalent governing body was approved by individuals        referred to in clause (1) above constituting at the time of such election or nomination at least a         majority of that board or equivalent governing body or (3) whose election or nomination to that         board or other equivalent governing body was approved by individuals referred to in clauses (1)        and (2) above constituting at the time of such election or nomination at least a majority of that        board or equivalent governing body; or                (d)    there shall have occurred under any indenture or other instrument evidencing any        Indebtedness or Equity Interests in excess of $3,000,000 any “change in control” or similar        provision (as set forth in the indenture, agreement or other evidence of such Indebtedness)        obligating Parent or any of its Subsidiaries to repurchase, redeem or repay all or any part of the        Indebtedness or Equity Interests provided for therein.                “Material Contract” means each contract the failure of which to be in effect would have a        material adverse effect on the business, financial condition or operations, in each case, of the        Parent and its Subsidiaries on a consolidated basis; provided that the Super Priority Loan        Documents shall not be deemed a Material Contract.                “Permitted Physician Equity Transfers” means any transfer (whether by Disposition or        through the issuance of Equity Interests in a new or existing Subsidiary) in the Ordinary Course        of Business of non-controlling minority Equity Interests in any Subsidiary of the Borrower to        licensed physicians who are directly involved in the daily operations of such Subsidiary so long        as (a) any Equity Interests transferred are not Equity Interests held by a Loan Party, (b) after        giving effect to such transfer, the Loan Parties do not hold less Equity Interests in such Subsidiary        than they did immediately prior to giving effect to such transfer and (c) such transfer does not        impair any voting, approval, consent or other rights of the Loan Parties in respect of such        Subsidiary.                “Required Super Priority Lenders” has the meaning assigned to such term in the Super        Priority Credit Agreement.                “Super Priority Agent” means Compass Bank in its capacity as super priority agent under        any of the Super Priority Loan Documents.                “Super Priority Credit Agreement” means that certain Super Priority Credit Agreement        entered into by and among the Borrower, Parent, Holdings, the other Loan Parties party thereto,        the Super Priority Agent and the super priority lenders party thereto from time to time, as may be        amended, restated, amended and restated or otherwise modified from time to time.                “Super Priority Loan Documents” has the meaning assigned to such term in the Super        Priority Credit Agreement.                “Super Priority Loans” means the “Loans” as such term is defined in the Super Priority        Credit Agreement.      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 7   502196916 v6 1205867.00001  

 

             “Super Priority Subordination Agreement” means that certain Subordination Agreement        entered into by and between the Administrative Agent and the Super Priority Administrative        Agent, as from time to time further amended, amended and restated, supplemented or otherwise        modified.                 (ii)   Section 2.5 of the Credit Agreement is hereby amended to delete clause (b)(vii)        thereof and replace it in its entirety with the following:                       “(vii)  Application of Mandatory Prepayments.  Each prepayment made               pursuant to the foregoing provisions of this Section 2.5(b) shall be applied, subject to the               terms of the Super Priority Subordination Agreement (including, without limitation, the               payment subordination provisions contained therein), in accordance with Section 8.3.”                (iii)  Section 2.13 of the Credit Agreement is hereby amended to delete clause (ii)        thereof and replace it in its entirety with the following:                       “(ii)   the provisions of this Section shall not be construed to apply to (A) any               payment made by the Borrower pursuant to and in accordance with the express terms of               this Agreement (including the application of funds arising from the existence of a               Defaulting Lender or the application of funds pursuant to Section 8.3), (B) the application               of Cash Collateral provided for in Section 2.14 or (C) any payment obtained by a Lender               as consideration for the assignment of or sale of a participation in any of its Loans or               participations in LC Obligations or Swingline Loans to any assignee or participant, other               than an assignment to a Loan Party or any of its Subsidiaries or Affiliates, as to which the               provisions of this Section shall apply.”                (iv)   Section 2.14(b) of the Credit Agreement is hereby amended to delete the phrase         “first priority security interest in all such cash” and replace it in its entirety with the following:                “first priority security interest, subject to Permitted Liens, in all such cash”                (v)    Section 5.3 of the Credit Agreement is hereby amended to delete the         parenthetical “(including the first priority nature thereof)” and replace it in its entirety with the         following:                “(including the first priority nature thereof, subject to Permitted Liens)”                (vi)   Section 5.25 of the Credit Agreement is hereby amended to delete clauses (a) and         (b) thereof and replace them in their entirety with the following:                       “(a) Parent does not engage in any business activities and does not own any               Collateral other than (i) ownership of the Equity Interests of Holdings and other de               minimis assets (including Intellectual Property) associated with its ownership of               Holdings, in each case pledged to the Secured Parties under a Collateral Document,               (ii) activities and contractual rights incidental to maintenance of its corporate existence,               (iii) performance of its obligations under the Loan Documents to which it is a party and               the Super Priority Loan Documents to which it is a party, (iv) as a tenant under the lease               for real property located at 5920 Forest Park Drive, Suite 700, Dallas, Texas 75235,               (v) as a tenant under the lease for real property located at 4120 Southwest Freeway,               Houston, Texas 77027, (vi) as a party to employment contracts of employees of Parent or               the Borrower, (vii) as a party to customary documents in connection with any permitted               issuance of Equity Interests or Indebtedness, (viii) as a party to joint venture master     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 8   502196916 v6 1205867.00001  

 

             agreements with respect to joint ventures in place on the Amendment No. 2 Effective               Date (but with respect to which Parent owns no Equity Interests and has no material               obligations or liabilities), (ix) Contingent Obligations incurred in the Ordinary Course of               Business with respect to operating leases, (x) customary engagements of investment               banks, legal counsel, and other service providers, (xi) as party to customary insurance               contracts, and (xii) customary contractual obligations and indemnities provided in               connection with Acquisitions and other Investments permitted under this Agreement.                       (b) Holdings does not engage in any business activities and does not own any               Collateral other than (i) ownership of the Equity Interests of Borrower and other de               minimis assets (including Intellectual Property) associated with its ownership of               Borrower, in each case pledged to the Secured Parties under a Collateral Document and               pledged to the Super Priority Agent under the Super Priority Loan Documents,               (ii) activities and contractual rights incidental to maintenance of its corporate existence,               (iii) performance of its obligations under the Loan Documents to which it is a party and               the Super Priority Loan Documents to which it is a party, (iv) as a party to employment               contracts of employees of Holdings or the Borrower, (v) Contingent Obligations incurred               in the Ordinary Course of Business with respect to operating leases, (vi) customary               engagements of investment banks, legal counsel, and other service providers, (vii) as               party to customary insurance contracts, and (viii) customary contractual obligations and               indemnities provided in connection with Acquisitions and other Investments permitted               under this Agreement.”                (vii)  Section 6.2 of the Credit Agreement is hereby amended to delete clause (d)        thereof and replace it in its entirety with the following:                       “(d)  promptly after the furnishing thereof, a copy of any statement or report               relating to an “event of default” furnished to or by any holder of Indebtedness of any               Loan Party or any Subsidiary thereof in excess of $3,500,000 pursuant to the terms of any               indenture, loan or credit or similar agreement (other than the Super Priority Loan               Documents);”                              (viii)  Section 7.1 of the Credit Agreement is hereby amended to (I) delete the word        “and” at the end of clause (r) thereof, (II) re-letter the existing clause (s) as clause (t) and (III) add        the following as a new clause (s):                       “(s)   Liens securing Indebtedness permitted under Section 7.2(l); which may               have priority over the Liens securing the Obligations; and”                (ix)   Section 7.2 of the Credit Agreement is hereby amended to (I) delete the word        “and” at the end of clause (k) thereof, (II) re-letter the existing clause (l) as clause (m), and (III)        add the following as a new clause (l):                       “(l)   Indebtedness under the Super Priority Credit Agreement and Guarantees               made by a Loan Party or Subsidiary of a Loan Party with respect to any such               Indebtedness; and”                (x)    Section 7.4 of the Credit Agreement is hereby amended to (I) delete the word        “and” at the end of clause (e) thereof, (II) re-letter the existing clause (f) as clause (g) and (III)        add the following as a new clause (f):      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 9   502196916 v6 1205867.00001  

 

                    “(f)  Dispositions consented to in writing by the Super Priority Agent and the               Required Super Priority Lenders (or deemed consented to by the Super Priority Lenders               in accordance with the terms of the Super Priority Credit Agreement); and”                 (xi)   Section 7.5 of the Credit Agreement is hereby amended to (I) delete the word        “and” at the end of clause (i) thereof, (II) re-letter the existing clause (j) as clause (k) and (III) add        the following as a new clause (j):                       “(j)   Dispositions consented to in writing by the Super Priority Agent and the               Required Super Priority Lenders(or deemed consented to by the Super Priority Lenders in               accordance with the terms of the Super Priority Credit Agreement); and”                 (xii)  Section 7.9 of the Credit Agreement is hereby amended and restated to read in its        entirety as follows:                       “7.9  Burdensome Agreements.  Except for any agreement in effect (a) on the               Closing Date and set forth on Schedule 7.9 of the Disclosure Schedules, (b) at the time               any Person becomes a Subsidiary, so long as such agreement was not entered into in               contemplation of such Person becoming a Subsidiary, or (c) in connection with the               Disposition of a Subsidiary, enter into or permit to exist any Contractual Obligation               (other than any Loan Document or any Super Priority Loan Document) that (i) limits the               ability (A) of any Subsidiary to make Restricted Payments to the Borrower or any other               Loan Party or to otherwise transfer property to or invest in the Borrower or any other               Loan Party, (B) of any Subsidiary to Guarantee the Indebtedness of the Borrower or (C)               of the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on               property of such Person; provided that this clause (C) shall not prohibit any negative               pledge incurred or provided in favor of any holder of Indebtedness permitted under               Section 7.2(c) solely to the extent any such negative pledge relates to the property               financed by or the subject of such Indebtedness or (ii) requires the grant of a Lien to               secure an obligation of such Person if a Lien is granted to secure another obligation of               such Person.”                (xiii)  Section 7.15 of the Credit Agreement is hereby amended to delete clauses (a) and         (b) thereof and replace them in their entirety with the following:                       “(a) In the case of Holdings, engage in any business or activity other than (i) the               ownership of all outstanding Equity Interests in the Borrower, (ii) as a tenant under the               lease for real property located at 5920 Forest Park Drive, Suite 700, Dallas, Texas 75235               (iii) maintaining its corporate existence, (iv) participating in tax, accounting and other               administrative activities (including being a party to employment contracts of employees               of Holdings or the Borrower) as the parent of the consolidated group of companies,               including the Loan Parties, (v) the execution and delivery of the Loan Documents to               which it is a party, the performance of its obligations thereunder and the activities               expressly permitted thereby, (vi) the execution and delivery of the Super Priority Loan               Documents to which it is a party, the performance of its obligations thereunder and the               activities expressly permitted thereby, (vii) incurring Contingent Obligations in the               Ordinary Course of Business with respect to operating leases, (viii) entering into               customary engagements with investment banks, legal counsel, and other service               providers, (ix) as party to customary insurance contracts, (x) as party to customary               contractual obligations and indemnities provided in connection with Acquisitions and               other Investments permitted under this Agreement, and (xi) activities incidental to the               businesses or activities described in the foregoing clauses (i) through (x).     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 10   502196916 v6 1205867.00001  

 

                    (b) In the case of Parent, engage in any business or activity other than (i) the               ownership of all outstanding Equity Interests in Holdings, (ii) maintaining its corporate               existence, (iii) participating in tax, accounting and other administrative activities               (including being a party to employment contracts of employees of Parent or the               Borrower) as the parent of the consolidated group of companies, including the Loan               Parties, (iv) the execution and delivery of the Loan Documents to which it is a party, the               performance of its obligations thereunder and the activities expressly permitted thereby,               (v) the execution and delivery of the Super Priority Loan Documents to which it is a               party, the performance of its obligations thereunder and the activities expressly permitted               thereby, (vi) incurring Contingent Obligations in the Ordinary Course of Business with               respect to operating leases, (vii) entering into customary engagements with investment               banks, legal counsel, and other service providers, (viii) as party to customary insurance               contracts, (ix) as party to customary contractual obligations and indemnities provided in               connection with Acquisitions and other Investments permitted under this Agreement, and               (x) activities incidental to the businesses or activities described in the foregoing clauses               (i) through (ix) (which shall expressly include (x) being a party to customary documents               in connection with any permitted issuance of Equity Interests or Indebtedness and               (y) being a party to joint venture master agreements with respect to joint ventures in place               on the Closing Date (but with respect to which Parent owns no Equity Interests and has               no material obligations or liabilities)).”                               (xiv)  Section 7.21 of the Credit Agreement is hereby amended to (I) re-letter the        existing clause (i) as clause (j), (II) re-letter the existing clause (j) as clause (h) and (III) add the        following as a new clause (i):                              “(i) Contingent Obligations pursuant to any Super Priority Loan Document;”                (xv)   Section 8.1 of the Credit Agreement is hereby amended to delete clauses (a) and        (l) thereof and replace them in their entirety with the following:                “(a)   Non-Payment.  Any Loan Party fails to (i) pay when and as required to be paid        herein, any amount of principal of any Loan or any LC Obligation, (ii) deposit when and as        required to be deposited herein, any funds as Cash Collateral in respect of LC Obligations, (iii)        pay within three days after the same becomes due, any interest on any Loan or on any LC        Obligation, or any fee due hereunder or (iv) pay within five calendar days after the same becomes        due, any other amount payable hereunder or under any other Loan Document; provided that no        payment hereunder shall be required to be paid to the extent the Loan Parties are prohibited from        making such payment under the Super Priority Credit Agreement or the Super Priority        Subordination Agreement and such non-payment as a result of such prohibition shall not be a        Default or an Event of Default hereunder.”                 “(l)   Collateral Documents. Any Collateral Document after delivery thereof (whether        pursuant to Section 4.1, Section 6.12 or otherwise under the Loan Documents) shall for any        reason (other than pursuant to the terms thereof or as expressly permitted thereby) cease to create        a valid and perfected lien with the priority (subject to the Liens created under the Super Priority        Loan Document) contemplated by the Collateral Documents on and security interest in the         Collateral purported to be covered thereby or any Loan Party shall so assert such invalidity or        lack of perfection or priority, except to the extent that any such loss of perfection or priority        results from the failure of the Administrative Agent (i) to maintain possession of certificates        actually delivered to it representing securities pledged under the Collateral Documents, (ii) to file      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 11   502196916 v6 1205867.00001  

 

      Uniform Commercial Code continuation statements or (iii) do such other acts as are necessary to        continue such perfection (so long as the Loan Parties are in compliance with Section 6.14).                 (xvi)  Section 8.3 of the Credit Agreement is hereby amended and restated to read in its         entirety as follows:                                     “8.3  Application of Funds.  Subject to the terms and conditions of the Super        Priority Subordination Agreement (including, without limitation, the payment subordination        provisions contained therein), any amounts received on account of the Obligations shall, subject        to the provisions of Sections 2.14 and 2.15, be applied by the Administrative Agent in the        following order:                First, to payment of that portion of the Obligations constituting fees, indemnities,        expenses and other amounts (including fees, charges and disbursements of counsel to the        Administrative Agent and amounts payable under Article III) payable to the Administrative        Agent in its capacity as such;                Second, to payment of that portion of the Obligations constituting fees, indemnities and        other amounts (other than principal, interest and LC Fees) payable to the Lenders and the LC        Issuing Lender under the Loan Documents (including fees, charges and disbursements of counsel        to the respective Lenders and the LC Issuing Lender and amounts payable under Article III),        ratably among them in proportion to the respective amounts described in this clause Second        payable to them;                Third, to payment of Obligations constituting unpaid principal of the Loans in an amount        not to exceed an amount equal to (i) one hundred and twenty five percent (125%) of all Super        Priority Loans made by Lenders (including, without limitation, any Super Priority Loans that        have been repaid), minus (ii) any Obligations previously paid in accordance with this clause        Third, allocated ratably among the Lenders that made Super Priority Loans in proportion to the        total Super Priority Loans made by such Lender (including, without limitation, any Super Priority        Loans that have been repaid) after giving effect to any assignments of Super Priority Loans        among Lenders;                Fourth, to payment of that portion of the Obligations constituting accrued and unpaid LC        Fees and interest on the Loans, LC Borrowings and other Obligations arising under the Loan        Documents, ratably among the Lenders and the LC Issuing Lender in proportion to the respective        amounts described in this clause Fourth payable to them;                Fifth, to payment of that portion of the Obligations constituting unpaid principal of the        Loans, LC Borrowings and payment obligations then owing under Secured Hedge Agreements        and Secured Cash Management Agreements, and to the Administrative Agent for the account of        the LC Issuing Lenders, to Cash Collateralize that portion of L/C Obligations comprised of the        aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by        the Borrower pursuant to Sections 2.3 and 2.14, in each case ratably among the Lenders, the LC        Issuing Lenders, the Hedge Banks and the Cash Management Banks in proportion to the        respective amounts described in this clause Fifth held by them; and                Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to        the Borrower or as otherwise required by applicable Law.                Subject to Sections 2.3(c) and 2.14, amounts used to Cash Collateralize the aggregate        undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 12   502196916 v6 1205867.00001  

 

      drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash        Collateral after all Letters of Credit have either been fully drawn or expired, such remaining        amount shall be applied to the other Obligations, if any, in the order set forth above.                Notwithstanding the foregoing, Obligations arising under Secured Cash Management        Agreements and Secured Hedge Agreements shall be excluded from the application described        above if the Administrative Agent has not received written notice thereof, together with such        supporting documentation as the Administrative Agent may request, from the applicable Cash        Management Bank or Hedge Bank, as the case may be.  Each Cash Management Bank or Hedge        Bank not a party to this Agreement that has given the notice contemplated by the preceding        sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of        the Administrative Agent pursuant to the terms of Article IX for itself and its Affiliates as if a        “Lender” party hereto.”         (b)    Other Amendments.  On the Effective Date and subject to full and timely satisfaction of  the conditions precedent set forth in Section 4 hereof and the accuracy of the representations and  warranties set forth in Section 7 hereof, the Credit Agreement is hereby amended as follows:                (i)    Section 1.1 of the Credit Agreement is hereby amended by adding the new        definition of “Beneficial Ownership Regulation” to read in its entirety as follows.                  “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.                (ii)   Section 5.10 of the Credit Agreement is hereby amended to delete the reference        to “Each of the Loan Parties” therein and replace such reference in its entirety with “Except as        otherwise set forth in Schedule 5.10 of the Disclosure Schedules to (and as defined in) the Super        Priority Credit Agreement, each of the Loan Parties”.                (iii)  Section 6.2(i) of the Credit Agreement is hereby amended to delete the        parenthetical “(Including the PATRIOT Act)” and replace it in its entirety with the following:                “(including the PATRIOT Act and, to the extent the Borrower qualifies as a “legal entity        customer” under the Beneficial Ownership Regulation, the Beneficial Ownership Regulation)”                (iv)   Section 6.4 of the Credit Agreement is hereby amended and replace it in its        entirety with the following:                       “6.4 Payment of Taxes and Other Obligations. (a) Pay and discharge as the same               shall become due and payable all income and other material Tax liabilities, assessments               and governmental charges or levies upon it or its properties or assets (other than Tax               liabilities, assessments and governmental charges or levies as set forth on Schedule 5.10               of the Disclosure Schedules to (and as defined in) the Super Priority Credit Agreement),               unless the same are being contested in good faith by appropriate proceedings diligently               conducted (which proceedings have the effect of preventing the forfeiture or sale of the               property or assets subject to any Lien in favor of Secured Parties) and adequate reserves               with respect thereto are maintained on the books of the applicable Person in accordance               with GAAP trade practices and (b) timely file all income and other material tax returns               required to be filed.”                (v)    Section 6.18 is hereby amended and restated to read in its entirety as follows:      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 13   502196916 v6 1205867.00001  

 

                    “6.18 Cash Management Systems.  Each Loan Party shall use commercially               reasonable efforts to enter into, and cause each depository, securities intermediary or               commodities intermediary to enter into, control agreements with respect to each of its               deposit, securities, commodity or similar accounts maintained by such Person (other than               (a) any payroll account, any withholding tax account, and any fiduciary account, (b) petty               cash accounts, amounts on deposit in which do not exceed $100,000 in the aggregate at               any one time, (c) withholding tax and fiduciary accounts, (d) any such account under the               control of a Secured Party, (e) any account containing cash collateral for credit card               obligations payable to Compass Bank, to the extent permitted by Section 7.1(r), and (f)               the accounts listed on Schedule 6.18 of the Disclosure Schedules). Each Loan Party shall               promptly notify the Administrative Agent of the existence of any account with respect to               which the provisions of the foregoing sentence would apply (whether such account is               newly created or acquired, or otherwise ceases to be an excluded type of account).”                (vi)   Section 7.1 of the Credit Agreement is hereby amended to (I) delete the word        “and” at the end of clause (q) thereof, (II) re-letter the existing clause (r) as clause (t) and (III) add        the following as new clauses (r) and (s):                       “(r)   Liens on cash collateral to secure credit card obligations payable to               Compass Bank, to the extent permitted by Section 7.2(d), so long as (a) the fair market               value of such cash collateral does not exceed $300,000 in the aggregate at any time, and               (b) upon the indefeasible payment in full in cash of such credit card obligations and the               termination of any obligation of Compass Bank to make future credit card advances, any               remaining cash collateral shall be applied to the Obligations in accordance with Section               8.3;”                                            “(s)   Liens resulting from the non-payment of Tax liabilities, assessments and               governmental charges or levies as set forth in Schedule 5.10 of the Disclosure Schedules               to (and as defined in) the Super Priority Credit Agreement; and”                       (vii)  Section 7.2 of the Credit Agreement is hereby amended to (I) delete clause (d)        thereof and replace it with clause (d) below, (II) delete the word “and” at the end of clause (k),        (III) re-letter the existing clause (l) as clause (m) and (IV) add clause (l) below following as a new        clause (l):                              “(d)   Indebtedness (i) owing under any Swap Contract entered into in order to               manage existing or anticipated interest rate, exchange rate or commodity price risks and               not for speculative purposes and (ii) owing under Cash Management Agreements so long               as the aggregate amount of all such Indebtedness under Cash Management Agreement               with other than a Secured Party at any one time outstanding shall not exceed $2,500,000;               provided that credit card obligations payable to Compass Bank at any one time               outstanding shall not exceed $300,000;”                       “(l)   Indebtedness in respect of trade accounts payable that are more than 90               days past due in an aggregate amount not to exceed $20,000,000; and”                (viii)  Section 7.5 of the Credit Agreement is hereby amended to delete clause (i)        thereof in its entirety and replace it with the following:                                     “(i)   Dispositions not otherwise permitted under this Section 7.5; provided               that (i) the aggregate fair market value of assets Disposed of in reliance on this clause      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 14   502196916 v6 1205867.00001  

 

             shall not exceed $5,000 individually or $25,000 in the aggregate, (ii) such Disposition               shall be for fair market value as determined in good faith by an officer or director of such               Person and (iii) the Net Cash Proceeds of such Disposition shall be applied in accordance               with Section 2.5(b)(ii).”                                (c)   Consent.  Subject to full and timely satisfaction of the conditions set forth in Section 4  hereof and the accuracy of the representations and warranties set forth in Section 7 hereof on the Effective  Date, the Lenders party hereto hereby expressly consent to and authorize the Administrative Agent to (i)  enter into a Super Priority Subordination Agreement in form and substance acceptable to the  Administrative Agent, the Super Priority Agent and the Super Priority Lenders, each in its sole discretion,  by which the Obligations and the Liens securing the Obligations will be subordinated to the Super  Priority Obligations and (ii) expressly consent to and authorize the Administrative Agent to (x) enter into  the Super Priority Subordination Agreement in form and substance acceptable to the Administrative  Agent, the Super Priority Agent and the Super Priority Lenders, each in its sole discretion by which the  Obligations and the Liens securing the Obligations will be subordinated to the Super Priority Obligations  and (y) enter into any amendments to the Collateral Documents that may be required to effect such  subordination.  Subject to full and timely satisfaction of the conditions set forth in Section 4 hereof and  the accuracy of the representations and warranties set forth in Section 7 hereof on the Effective Date, the  Lenders party hereto hereby expressly consent under the Credit Agreement and other Loan Documents to  the Loan Parties entering into the Super Priority Loan Documents and the Super Priority Subordination  Agreement and performing their obligations thereunder.           (d)    Consent Fee.  The Loan Parties hereby agree that each Lender that provides its consent  pursuant to Section 3(c) (each, a “Consenting Lender”) shall be entitled to its pro rata share (to be  calculated based on such Consenting Lender’s Total Credit Exposure as a percentage of the aggregate  Total Credit Exposure of  all Consenting Lenders) of the aggregate fee, for all such lenders, of $300,000  (the “Consent Fee”) which Consent Fee shall be fully earned (and shall constitute a part of the  Obligations) and due on the Forbearance Effective Date; provided that payment of such fee shall be  deferred to until the earliest to occur of (x) the termination of the Second Forbearance Period (or if a  subsequent forbearance period is agreed to by the Administrative Agent and the Required Lenders, the  end of such subsequent forbearance period), and (y) the consummation of a sale or refinancing transaction  by any of the Loan Parties which results in any payment of outstanding interest or principal under the  Credit Agreement.  The Loan Parties hereby acknowledge and agree that such Consent Fee is non- refundable and is in addition to any other fees payable by the Loan Parties under the Credit Agreement or  any other Loan Document.          4.    CONDITIONS PRECEDENT TO EFFECTIVENESS OF SECOND FORBEARANCE  PERIOD.  Section 2.1 of this Second Forbearance Agreement shall become effective on the date when the  following conditions shall have been satisfied or waived (such date, the “Forbearance Effective Date”):                4.1.   Deliverables.  The Administrative Agent shall have received this Second  Forbearance Agreement, duly executed by each of the Loan Parties.                4.2.   Representations and Warranties.  The representations and warranties of the Loan  Parties contained in Article V of the Credit Agreement and in each other Loan Document shall be true and  correct in all material respects (or, in the case of any such representation and warranty that is subject to  materiality or Material Adverse Effect qualifications, in all respects) on and as of the Forbearance  Effective Date, except to the extent that such representations and warranties specifically refer to an earlier  date, in which case they shall be true and correct in all material respects (or, in the case of any such  representation and warranty that is subject to materiality or Material Adverse Effect qualifications, in all      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 15   502196916 v6 1205867.00001  

 

respects as of such earlier date); provided that no representation or warranty shall be rendered inaccurate  as a result of the occurrence and continuation of the Specified Events of Default.                 4.3.   Absence of Additional Defaults.  No Default or Event of Default under the Credit  Agreement or the other Loan Documents shall have occurred on or after the Forbearance Effective Date  and be continuing, other than the Specified Events of Default.                4.4    Expenses of Administrative Agent.  The Borrower shall have paid all reasonable  and documented expenses of the Administrative Agent and Compass Bank in its capacity as Lender  incurred or accrued through the Forbearance Effective Date (including, without limitation, (i) any unpaid  demand invoice from K&L Gates, LLP in its capacity as counsel to the Administrative Agent delivered to  Borrower on or prior to the Forbearance Effective Date, (ii) those certain unpaid demand invoices in the  amount of $118,238.33 and $71,407.12, from Berkeley Research Group in its capacity as financial  advisor to the counsel to the Administrative Agent, which demand invoices were delivered to the  Borrower on or about May 1, 2019, and (iii) any other unpaid demand invoices from Berkeley Research  Group in its capacity as financial advisor to the counsel to the Administrative Agent delivered to  Borrower for services incurred, relating to the period prior to the Forbearance Effective Date), for which  demand invoices have been delivered to the Borrower on or prior to the Forbearance Effective Date.                4.5    Payment of Forbearance Fee.  The Loan Parties shall have paid the Forbearance  Fee.                4.6    Super Priority Credit Facility. The Super Priority Credit Facility shall have been  consummated in accordance with the terms of the Super Priority Credit Agreement.                Without limiting the generality of the provisions of Section 9.3(c) of the Credit  Agreement, for purposes of determining compliance with the conditions specified in this Section 4, each  Lender that has signed this Second Forbearance Agreement shall be deemed to have consented to,  approved or accepted or to be satisfied with, each document or other matter required thereunder to be  consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent  shall have received notice from such Lender prior to the proposed Forbearance Effective Date specifying  its objection thereto.          5.    ADDITIONAL COVENANTS AND AGREEMENTS.  The continued effectiveness of  the Second Forbearance Period is subject to satisfaction of the following covenants, and in addition to the  covenants set forth in the Credit Agreement and the other Loan Documents other than those set forth in  the Specified Events of Default, each of the Loan Parties hereby covenants and agrees as follows:                 (a)    Administrative Agent Consultant.  Without limiting the obligations of the  Borrower under the Credit Agreement, each Loan Party expressly continues to (i) consent to retention by  counsel to the Administrative Agent of one or more consultants (including, without limitation, Berkeley  Research Group, LLC, retained by counsel to the Administrative Agent), advisors and/or other  professionals in connection with the Credit Agreement and the other Loan Documents, in each case, as  permitted under such Loan Documents (including, but not limited to Section 10.4(a) of the Credit  Agreement), but subject to the limitations and restrictions thereof, including for the purpose of analyzing  the Business Plan (as defined below) sales, collections, cash flow and similar operations of the Parent and  its subsidiaries (each a “Consultant”), (ii) agree to pay the reasonable fees and out-of-pocket expenses  (including payment of the amount of any reasonable retainer) of such Consultants promptly upon demand  from time to time by the Administrative Agent and (iii) agree to provide the Administrative Agent and  such Consultants with such information and direct access to the books, records and management of  Parent, Holdings, the Borrower and the other Loan Parties during reasonable business hours as reasonably  requested by the Administrative Agent or any such Consultant.  Without limiting the foregoing, the Loan     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 16   502196916 v6 1205867.00001  

 

Parties shall cause the Consultant to be invited to and permitted to participate in all calls and meetings  held by the Loan Parties to discuss any of the following: (i) updates related to the review of accounts  payable and planning of cash disbursements, including without limitation any calls or meetings regarding  the status of the Company’s cash and decisions related to payment of accounts payable and vendors and  (ii) the review of accounts receivable, including without limitation any weekly calls or meetings regarding  the status of collection efforts in respect of any accounts receivable (including, without limitation,  written-off or fully reserved accounts receivable).                              (b)    Borrower Consultant.  The Loan Parties shall, at their sole cost and expense,  continue to retain Morris Anderson (the “Borrower Consultant”), which consultant was selected by the  Loan Parties and is acceptable to the Administrative Agent, to assist management with the review,  evaluation and improvement of their operations and financial performance, on terms and conditions  reasonably acceptable to the Administrative Agent, which shall continue to include (i) direct access by the  Borrower Consultant to the Parent, Holdings and the Borrower during reasonable business hours, and (ii)  the Administrative Agent and the Consultant having direct and unrestricted access to the Borrower  Consultant and direct communications with such Borrower Consultant, either with the Borrower, Parent  or Holdings or their counsel present or without the presence of Borrower, Parent or Holdings or their  counsel.                                (c)    Engagement of Chief Restructuring Officer.  The Loan Parties shall continue to  engage and maintain the services of Daniel Wiggins, as chief restructuring officer of the Loan Parties (the  “Chief Restructuring Officer”) on terms consistent with that certain Agreement for Services, dated  November 26, 2018, by and between Morris Anderson & Associates, Ltd., Parent, Borrower and  Holdings (as amended by that certain Amendment Number 1 to Agreement for Services, dated November  28, 2018, as further amended by that certain Amendment Number 2 to Agreement for Services, dated  April 10, 2019).  The Chief Restructuring Officer shall continue to have the full and exclusive power and  authority to (i) restructure the operations of Loan Parties and (ii) effect a transaction (the “Transaction”)  providing for (A) the complete and indefeasible payment in full in cash and satisfaction of the Obligations  or (B) the indefeasible payment in cash of a discounted amount of the Obligations with the express  written consent of the Administrative Agent and the Lenders in full satisfaction of the Existing Lender  Debt, and as to each of the foregoing, subject to the terms and conditions of this Second Forbearance  Agreement.  The Chief Restructuring Officer shall continue have the full and exclusive power and  authority (including the exclusive power and authority to manage current staff, consultants and  contractors of the Loan Parties) to implement the foregoing, including check-writing authority, and shall  have full access to and authority over Loan Parties’ cash management system.  Further, the Chief  Restructuring Officer shall continue be charged with ensuring the performance of all obligations of Loan  Parties under this Second Forbearance Agreement, the Credit Agreement and the other Loan Documents  (including the timely and accurate reporting of all required financial and collateral information).  Loan  Parties’ engagement letter with the Chief Restructuring Officer shall continue to provide (i) that the Chief  Restructuring Officer shall perform the tasks and shall have the exclusive authority as set forth in this  Section 5(c) and (ii) that the Administrative Agent, its counsel and its counsel's financial advisors will  have direct and unrestricted access to the Chief Restructuring Officer and direct communications with the  Chief Restructuring Officer, either with the Loan Parties' or their counsel present or without the presence  of the Loan Parties or their counsel.                               (d)    Retention of Investment Banker.  The Loan Parties shall continue to retain SSG  Advisors, LLC (“SSG”), to assist the Loan parties in sourcing and evaluating potential financing,  restructuring, and other transactions.  The Loan Parties agree that the engagement by Nobilis of SSG shall  continue to require that:                    SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 17   502196916 v6 1205867.00001  

 

          (i)    SSG provide to the Administrative Agent, its counsel, its counsel’s financial advisors                   and the Lenders with weekly updates on a continuous basis, or as often as may be                   requested by the Administrative Agent, its counsel or its counsel’s financial advisors,                   of all information or communications pertaining to any and all Transactions,                   including, but not limited to, providing to the Administrative Agent, its counsel, its                   counsel’s financial advisors and the Lenders, letters of intent, purchase commitments,                   or expressions of interest relating to any and all the foregoing, together with any and                   all correspondence pertaining to the status of the completion of any and all of the                   foregoing.                               (ii)  SSG conduct ongoing, routine communications with the Loan Parties, and with the                  Administrative Agent, its counsel, its counsel’s financial advisors and the Lenders,                  including periodic progress towards obtaining any and all Transactions.                                                            (iii) SSG and the Loan Parties continue to acknowledge and agree that any Transactions                  shall be subject to the express prior written consent of the Administrative Agent and                  the Lenders, as provided under the governing credit agreements between and among                  the Loan Parties, the Administrative Agent, and the Lenders and the other parties                  thereto and this Second Forbearance Agreement.                           (e)    Additional Covenants of Loan Parties in respect of the Chief Restructuring  Officer and Investment Banker Engagements.  No Loan Party shall alter the duties or responsibilities of  the Chief Restructuring Officer or SSG without the prior, written consent of the Administrative Agent.   Each Loan Party, together with its attorneys, officers, directors, agents, employees, and representatives, as  appropriate (collectively, the “Loan Party Group”), shall fully cooperate with the Chief Restructuring  Officer and SSG in performing its services as contemplated hereunder and in the applicable engagement  letter and shall not interfere directly or indirectly with the Chief Restructuring Officer’s or SSG's  performance of such services.                              (f)    Business Plan.  The Loan Parties will update the Administrative Agent from time  to time in writing with any material changes to the Business Plan presentation dated March 20, 2019 and  the underlying financial projection model provided in connection therewith (collectively, the “Business  Plan”) that was provided to the Administrative Agent in accordance with the terms of the Fourth Limited  Waiver.                                                                 (g)    Cash Flow Reports.  The Loan Parties shall continue to prepare and deliver to the  Administrative Agent no later than 4:00 pm Central Time on each Wednesday (or such later date as may  be agreed to by the Administrative Agent in writing in its reasonable discretion) (i) an updated rolling  cash flow forecast for the succeeding 13 weeks, in each case, for Holdings, Parent, Borrower, its  Subsidiaries, and other parties whose cash flows contribute to the Borrower’s revenues (the “Contributing  Loan Parties”) on a consolidated basis and otherwise, in form and substance reasonably satisfactory to the  Administrative Agent (the “Updated Cash Flow Forecast” and, together with each other cash flow  forecast delivered to the Administrative Agent pursuant to the First Limited Waiver, the Second Limited  Waiver, the Third Limited Waiver, the Fourth Limited Waiver or this Second Forbearance Agreement,  the “Cash Flow Forecasts”) and (ii) a certificate of the chief financial officer of the Borrower to the effect  that such Cash Flow Forecast reflects the Borrower’s good faith projection of such weekly cash receipts  and disbursements and ending balance of available cash (as of the last Business Day of each week) for the  Borrower, its Subsidiaries and the Contributing Loan Parties on a consolidated basis. To the extent that  any Updated Cash Flow Forecast line item includes a variance of more than 10% from the prior projected  amount for such line item, the Updated Cash Flow Forecast shall include an explanation of the reason for  such variance. Additionally, on each Wednesday, the Borrower shall provide with respect to itself, its      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 18   502196916 v6 1205867.00001  

 

Subsidiaries and the Contributing Loan Parties, on a consolidated basis, a report for the week ending the  previous Friday, in form and substance reasonably satisfactory to the Administrative Agent, specifying  (A) the cash on hand in deposit accounts at the beginning of such week, (B) cash receipts received during  such week, with a schedule detailing daily collections, (C) cash disbursed during such week in payment of  expenses, (D) the cash on hand in deposit accounts at the end of such week and (E) a comparison of such  amounts to the comparable amounts in the Cash Flow Forecast for such week and in the aggregate for the  applicable Cash Flow Forecast period.                              (h)    Approved Budget.  The Loan Parties shall continue to prepare and deliver to the  Administrative Agent no later than 4:00 pm Central Time on each Friday every two weeks (with the next  such delivery to be on May 10, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree in writing in its sole discretion): (i) an updated rolling cash flow forecast  for the succeeding 13 weeks, in each case, for Holdings, Parent, Borrower, its Subsidiaries, and other  parties whose cash flows contribute to the Borrower’s revenues (the “Contributing Loan Parties”) in each  case showing projected daily cash receipts, cash disbursements to fund costs and expenses that are critical  to (x) operate and maintain the overall operational value of the Loan Parties' Assets (as defined below)  and (y) fund the critical expenses to maintain the core assets identified on Schedule 1 hereto, which  Schedule may be amended in writing from time to time by the Loan Parties following notice to and  written approval by the Administrative Agent (the “Core Assets”), and other financial information  required by the Administrative Agent including, without limitation (A) payables by facility and/or  subsidiary, (B) receivables by facility and/or subsidiary, (C) cash at each subsidiary and (D) major  vendors by facility and/or subsidiary (as expressly approved in writing by the Administrative Agent from  time to time, the “Approved Budget”) and (ii) a certificate of the chief financial officer and the Chief  Restructuring Officer of the Borrower to the effect that such Cash Flow Forecast reflects the Borrower’s  good faith projection of such weekly cash receipts and disbursements and ending balance of available  cash (as of the last Business Day of each week) for the Borrower, its Subsidiaries and the Contributing  Loan Parties on a consolidated basis.  Such Approved Budget shall separate the costs and expenses  critical to maintain the Core Assets from the costs and expenses to operate and maintain the value of the  Loan Parties' Assets.  “Assets” mean any and all equity interests held directly or indirectly by any Loan  Party or any other assets of any Loan Party, including without limitation, personal or real property.                              (i)    [Reserved].                                                                (j)    Receivables Collection Process.  The Loan Parties shall continue to provide the  Administrative Agent every two (2) weeks an updated summary of actions the Loan Parties have taken to  improve the receivables collection process, which updates shall be prepared by the Borrower Consultant,  on behalf of the Loan Parties, and with the next such update to be delivered to the Administrative Agent  on May 8, 2019, no later than 4:00 pm Central Time (or such later date as the Administrative Agent may  agree in writing in its sole discretion), including updates as to the status of the transition of the receivables  collection process to the Equalize RCM Services.  The Loan Parties shall also use commercially  reasonable efforts to cause the Equalize RCM Services to respond to questions (including questions  delivered to the Borrower from the Administrative Agent and the Consultant) related to the receivables  collection process.                                                                 (k)    Accounts Receivable Aging Report.  Prior to the Effective Date hereof, the  Borrower has provided the Administrative Agent with (i) a copy of the prior accounting policy and  methodology (the “Prior Accounting Policy and Methodology”), (ii) a copy of the revised accounting  policy and methodology implemented by the Borrower (the “Revised Accounting Policy and  Methodology”), and (iii) a written explanation (prepared with the input of the Borrower Consultant) for  the reasons the changes made to the Prior Accounting Policy and Methodology were required.   No later  than 4:00 pm Central Time on May 15, 2019 (or such later date as may be agreed to by the Administrative      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 19   502196916 v6 1205867.00001  

 

Agent in writing in its sole discretion) and on the 15th calendar day of each month thereafter (or such  later date as may be agreed to by the Administrative Agent in writing in its sole discretion), the Borrower  shall continue to provide the Administrative Agent with the most current available accounts receivable  aging report with respect to itself and its Subsidiaries which shall be based on the Revised Accounting  Policy and Methodology and shall provide detailed information by facility, insurance payment source  (separating in-network claims from out-of-network claims), and, to the extent such information can be  reasonably compiled within the aging report using the resources of the Loan Parties and the Borrower  Consultant, Loan Party, in form and substance reasonably acceptable to the Administrative Agent.                              (l)    Accounts Receivable Data.  No later than 4:00 pm Central Time on May 15,  2019 (or such later date as may be agreed to by the Administrative Agent in writing in its sole discretion)  and on the 15th calendar day of each month thereafter (or such later date as may be agreed to by the  Administrative Agent in writing in its sole discretion), the Borrower shall provide the Administrative  Agent with (i) detail of amounts outstanding on a facility and consolidated basis by service date or  invoice, as applicable, with related aging of accounts receivable, (ii) detail by facility and on a  consolidated basis relating to any accounts receivables write-offs for such period, including any collection  on such previously written off account balances, and (iii) the Loan Parties’ plan to collect accounts  receivable, including any related write-offs, in each case, in form and substance reasonably acceptable to  the Administrative Agent.                                                               (m)    Indebtedness Updates.  The Loan Parties shall continue to provide the  Administrative Agent every two (2) weeks with updates in writing, in form and substance reasonably  acceptable to the Administrative Agent, as to the status of the Indebtedness as described on Exhibit A  hereto (the “Specified Indebtedness”) and disputes related to such Specified Indebtedness, with the next  such update to be delivered on May 8, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree to in writing in its sole discretion).  The Loan Parties shall also (i)  provide the Administrative Agent at least five (5) Business Days prior written notice of any payment to be  made in respect of any such Specified Indebtedness, and (ii) promptly (no later than two (2) Business  Days after receipt thereof) provide the Administrative Agent copies of any material filings, judgments,  communications, notices of default, term sheets, letters of intent or other documents that relate to or  impact such disputes or related to such Specified Indebtedness.                                                               (n)    Intercompany Promissory Notes.  The Loan Parties hereby represent that no  amounts are outstanding as of the Effective Date under any of the intercompany promissory notes  described on Exhibit B hereto (the “Intercompany Promissory Notes”).  The Loan Parties shall provide  the Administrative Agent with prompt written notice (not to exceed one Business Day after the  occurrence thereof) of (i) any amounts advanced or becoming outstanding under any of the Intercompany  Promissory Notes or under any replacement note issued in respect thereof and (ii) of any Investments  made pursuant to Section 7.3(c)(v) of the Credit Agreement.  At the request of the Administrative Agent,  the Loan Parties shall use commercially reasonable efforts to provide the Administrative Agent with  originals of replacement notes in respect of each of the Intercompany Promissory Notes along with  executed allonges for each such Intercompany Promissory Note, each in form and substance acceptable to  the Administrative Agent.                              (o)    Release of Liens.  The Loan Parties shall continue to use commercially  reasonable efforts to cause the lien listed on Exhibit C hereto (the “Specified Lien”) to be released. The  Loan Parties shall provide the Administrative Agent with written notice not later than five (5) Business  Days after any Loan Party’s knowledge of (i) any change in the status of the Specified Lien or (ii) the  increase of the amount of indebtedness secured by the Specified Lien.                                                      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 20   502196916 v6 1205867.00001  

 

             (p)    Litigation Updates.  The Loan Parties shall continue to provide the  Administrative Agent every two (2) weeks with updates in writing, in form and substance reasonably  acceptable to the Administrative Agent, as to the status of the litigation described on Exhibit D hereto and  any other litigation that would reasonably be expected to result in monetary judgment(s) or relief,  individually or in the aggregate, in excess of $3,500,000 or seeks an injunction or other equitable relief  which would reasonably be expected to have a Material Adverse Effect (collectively, the “Material  Litigation”), including updates as to the status of any stays, appeals, judgments, and the issuance of bonds  in connection with the appeal of such Material Litigation, along with copies of all material pleadings,  orders, and judgements that any Loan Party or any of its officers, managers, or directors have received  and documentation evidencing the issuance of any such bonds and the stay of such Material Litigation,  with the next such update to be delivered on May 8, 2019, no later than 4:00 pm Central Time (or such  later date as the Administrative Agent may agree to in writing in its sole discretion).                              (q)    NHC Network, LLC.  The Administrative Agent continues to maintain that the  Organizational Documents of NHC Network, LLC (“NHC”) do not prohibit NHC from becoming a Loan  Party and that pursuant to Section 6.12(a) of the Credit Agreement, NHC should be joined as a Loan  Party, while the Loan Parties continue to maintain that the Organizational Documents of NHC do prohibit  NHC from becoming a Loan Party without the consent of Elite Ambulatory Surgery Centers, LLC  (“Elite”) because doing so would give the right to Elite, under the Organizational Documents of NHC, to  put its equity interests in NHC back to NHC and would be detrimental to the business operations of NHC.   The Loan Parties continue to agree to use commercially reasonable efforts to obtain the consent of Elite in  a manner that will not be detrimental to the business operations of NHC and will provide the  Administrative Agent with updates as to the status of such efforts every two (2) weeks with the next such  update to be delivered on May 8, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree to in writing in its sole discretion).                                                               (r)    Commercially Reasonable Efforts to Cause Excluded Subsidiaries to Become  Loan Parties.  The Administrative Agent delivered a notice letter dated January 2, 2019 to Parent and  Holdings requiring Parent and Holdings to use commercially reasonable efforts to obtain the consent of  the third-party equityholders of each Excluded Subsidiary that is a Subsidiary of a Loan Party (including,  without limitation, Elite Sinus Spine and Ortho, LLC, Houston Metro Ortho and Spine Surgery Center,  LLC, Elite Center for Minimally Invasive Surgery, LLC, Elite Hospital Management, Athelite Holdings,  LLC, and Medical Ambulatory Surgical Suites, L.P.), in each case that is necessary to permit such  Excluded Subsidiary to become a Guarantor (“Third Party Consent”).  The Loan Parties shall continue to  provide the Administrative Agent every two (2) weeks with (A) updates in writing, in form and substance  reasonably acceptable to the Administrative Agent, as to the status of efforts to obtain the Third Party  Consents together with (B) any documentation supporting whom they have contacted, the responses they  have received and a proposed timeline of when they anticipate obtaining such Third Party Consents, the  next such update to be delivered May 8, 2019, no later than 4:00 pm Central Time (or such later date as  the Administrative Agent may agree to in writing in its sole discretion).                              (s)    Proposed Transactions. The Loan Parties shall promptly provide the  Administrative Agent with written notice not later than five (5) Business Days after any Loan Party’s  knowledge of any offers (x) from any bona fide purchaser to acquire any Loan Party or Loan Parties  or  any assets of any Loan Party or Loan Parties (collectively, the “Proposed Acquisitions”) and (y) from any  bona fide provider of refinancing or subordinated Indebtedness (collectively, “Proposed Indebtedness”  and together with the Proposed Acquisitions, the “Proposed Transactions”), along with copies of (i) to the  extent then available, proposed and final documentation related thereto, (ii) to the extent then available,  proposed and final sources and uses related thereto, (iii) to the extent then available, pro forma financial  statements and projections showing the impact of the Proposed Transaction, and (iv) to the extent relating  to a Proposed Acquisition and available, documentation evidencing that the Loan Parties are being fully      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 21   502196916 v6 1205867.00001  

 

released from any liabilities being transferred to a proposed purchaser (including, without limitation,  liabilities under transferred leases, debt and other contracts).  The Loan Parties shall also provide to the  Administrative Agent, to the extent applicable, a written summary of any impact any Proposed  Acquisition will have on any contracts of the Loan Parties (including, without limitation, any employment  agreements).  The Loan Parties shall provide the Administrative Agent no later than 4:00 pm Central  Time on each Wednesday (or such later date as may be agreed to by the Administrative Agent in writing  in its sole discretion) updates in writing, in form and substance reasonably acceptable to the  Administrative Agent, as to the status of the Proposed Transactions and to the extent then available,  copies of any documentation delivered in connection therewith, including, but not limited to, to the extent  applicable, letters of intent, purchase commitments, or expressions of interest relating to any such  Proposed Transaction, together with any and all correspondence pertaining to the status or updates of the  completion of such Proposed Transaction, the next such update to be delivered on May 8, 2019, no later  than 4:00 pm Central Time (or such later date as the Administrative Agent may agree to in writing in its  sole discretion).  Without limiting the foregoing: (i) nothing contained herein shall deemed to be a  consent to, or other approval of, either the consummation of any Proposed Transaction or any agreement  to either facilitate such Proposed Transaction and (ii) the consummation of any Proposed Transaction  shall be subject to Administrative Agent's prior written consent; provided, that the Administrative Agent  shall endeavor to respond to such request promptly upon the Loan Parties having provided to the  Administrative Agent, the Administrative Agent's counsel and Berkeley Research Group, LLC (i) notices  of such Proposed Transactions, (ii) all relevant documentation in respect thereof, and (iii) the business  rationale for such Proposed Transaction.                              (t)    Arizona Vein.  With respect of each of Nobilis Vascular Holding Company,  LLC, Chandler Surgery Center, LLC, Oracle Surgery Center, LLC, Phoenix Surgery Center, LLC and  NHC Professional Associates, LLC (collectively, “Arizona Vein”), the Loan Parties shall continue  provide the Administrative Agent every two (2) weeks (or such later date as may be agreed to in writing  by the Administrative Agent in its sole discretion) with updates in writing in respect of each of the items  set forth below, the next such update to be delivered on May 8, 2019, no later than 4:00 pm Central Time  (or such later date as the Administrative Agent may agree to in writing in its sole discretion), each in form  and substance reasonably satisfactory to the Administrative Agent:  (i) a listing of all locations leased by  or on behalf of Arizona Vein (collectively, the “Arizona Vein Locations”), (ii) a listing of all assets  (including, without limitation, all owned equipment, leased equipment, inventory) of the Loan Parties or  any of their subsidiaries located at any Arizona Vein Locations and organized by location, (iii) a list of all  agreements under which any Arizona Vein or any other Loan Party has any ongoing liability (including,  without limitation, any lease agreements, seller notes, or other contracts) to the seller from which Arizona  Vein was acquired or, to the extent arising in connection with Arizona Vein, any other party (collectively,  the “Arizona Vein Contracts”), (iv) a summary of amounts currently owed under each Arizona Vein  Contract and the party such amounts are owed to, (v) a summary of amounts that will become due over  the next 12 months under each Arizona Vein Contract and the party such amounts are owed to, and (vi)  copies of all term sheets, letters of intent or other summaries of terms in respect of resolving the  outstanding liabilities in respect of the Arizona Vein Contracts and/or disposing of Arizona Vein or any  assets thereof.  Without limiting the foregoing: (i) nothing contained herein shall deemed to be a consent  to, or other approval of, either the consummation of any Disposition or any agreement to either facilitate  such Disposition and (ii) the consummation of any Disposition shall be subject to the Administrative  Agent's prior written consent; provided, that the Administrative Agent shall endeavor to respond to such  request promptly upon the Loan Parties having provided to the Administrative Agent, the Administrative  Agent's counsel and Berkeley Research Group, LLC (i) notices of such proposed transactions, (ii) all  relevant documentation in respect thereof, and (iii) the business rationale for such proposed transaction.                              (u)    Hamilton Vein.  With respect to Nobilis Vascular Texas, LLC (“Hamilton  Vein”), the Loan Parties shall continue provide the Administrative Agent every two (2) weeks (or such      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 22   502196916 v6 1205867.00001  

 

later date as may be agreed to in writing by the Administrative Agent in its sole discretion) with updates  in writing in respect of each of the items set forth below, the next such update to be delivered on May 8,  2019, no later than 4:00 pm Central Time (or such later date as the Administrative Agent may agree to in  writing in its sole discretion), each in form and substance reasonably satisfactory to the Administrative  Agent: (i) a summary of the locations that have been closed and locations that currently remain open and  (ii) copies of any term sheet, letter of intent or other summary of terms related to any transactions that are  contemplated in respect of the sale of Hamilton Vein or any assets thereof.  Without limiting the  foregoing: (i) nothing contained herein shall deemed to be a consent to, or other approval of, either the  consummation of any Disposition or any agreement to either facilitate such Disposition and (ii) the  consummation of any Disposition shall be subject to the Administrative Agent's prior written consent;  provided, that the Administrative Agent shall endeavor to respond to such request promptly upon the  Loan Parties having provided to the Administrative Agent, the Administrative Agent's counsel and  Berkeley Research Group, LLC (i) notices of such proposed transactions, (ii) all relevant documentation  in respect thereof, and (iii) the business rationale for such proposed transaction.                              (v)    Other Updates.  The Loan Parties shall continue to provide the Administrative  Agent every two (2) weeks (or such later date as may be agreed to in writing by the Administrative Agent  in its sole discretion) with updates in writing in respect of each of the following, with the next such  update to be delivered May 8, 2019, no later than 4:00 pm Central Time (or such later date as the  Administrative Agent may agree to in writing in its sole discretion): (i) divestiture or facility closure  plans, by facility (including wind-down cost projection details and any related wind-down plan, as  applicable), other than with respect to divestitures plans that are otherwise addressed in the preceding  clauses (t) and (u) of this Second Forbearance Agreement, and (ii) details of any staffing or key personnel  retention plans.                                                               (w)    Notices of Changes.  The Loan Parties will provide the Administrative Agent  with written notice not later than five (5) Business Days after any Loan Party’s knowledge of the  following: (i) any change in insurance payer contracts at any facility, (ii) any updates or developments  with respect to offers or formal negotiations with new potential HOPD partners, and (iii) any updates or  changes relating to divestitures or facility closures.                                                               (x)    Changes to Material Operations.  The Loan Parties shall not shut down or dispose  of material operations of any Loan Party without obtaining the prior written consent of the Administrative  Agent in its sole discretion; provided, that the Administrative Agent shall endeavor to respond to any  request related to the foregoing promptly upon the Loan Parties having provided to the Administrative  Agent, the Administrative Agent's counsel and Berkeley Research Group, LLC (i) notices of such  proposed change, (ii) all relevant documentation in respect thereof and (iii) the business rationale for such  proposed change.                                                               (y)    Consent.  In the event the Administrative Agent or one or more Lender agree to  enter into a sale of its loans and commitments under the Credit Agreement, the Loan Parties agree that  they shall, promptly (and no later than three (3) Business Days after request therefore) upon the request of  the Administrative Agent execute and deliver to the Administrative Agent an acknowledgement, consent  and release in form and substance acceptable to the Administrative Agent in its sole discretion.                                                               (z)    Expenses.  The Loan Parties shall promptly (and in any event no later than three  (3) Business Days after presentation of a demand invoice to such Loan Party in respect thereof) pay all  reasonable and documented expenses of the Administrative Agent and Compass Bank in its capacity as  Lender incurred or accrued, including the reasonable and documented legal fees and expenses of counsel  for the Administrative Agent and all reasonable and documented fees and expenses of Berkeley Research  Group, LLC in its capacity as Consultant, for which demand invoices have been delivered to the      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 23   502196916 v6 1205867.00001  

 

Borrower (which demand invoices will be submitted to the Loan Parties every two weeks).  The Loan  Parties agree that failure to timely make any such payment shall be deemed an immediate additional  Event of Default under Article VIII of the Credit Agreement and will immediately terminate the Second  Forbearance Period.                                                               (aa)   Financial Covenants.  Upon finalizing the Parent’s financial statements for the  third fiscal quarter of 2018 (the “Final Q3 2018 Financial Statements”), the Borrower shall promptly  provide the Administrative Agent with a Compliance Certificate (in form and substance reasonably  satisfactory to the Administrative Agent) duly completed by a Senior Officer of Parent and Borrower and  demonstrating the calculation of the financial covenants set forth in Section 7.11 of the Credit Agreement  calculated as of the last day of the third fiscal quarter of 2018 based on the Final Q3 2018 Financial  Statements.                                                                 (bb)   Additional Information.  The Loan Parties shall continue to provide such other  information regarding the business, financial, legal or corporate affairs of any Loan Party or any  Subsidiary thereof, or compliance with the terms of the Loan Documents, as the Administrative Agent  may from time to time reasonably request (including, without limitation, to the extent requested by the  Administrative Agent, a daily reporting of the aggregate cash balance (including restricted and  unrestricted cash) for the Loan Parties’ and Contributing Loan Parties’ bank accounts on a consolidated  basis).                                                               (cc)   Mandatory Prepayments.  Notwithstanding anything in the Credit Agreement to  the contrary, the Borrower and each of the other Loan Parties hereby agree that the Loan Parties shall not  have any reinvestment rights in respect of proceeds that are subject to the mandatory prepayment  requirements of Section 2.5(b) of the Credit Agreement unless expressly consented to in writing by the  Administrative Agent and such proceeds will be applied to the Obligations as otherwise set forth in the  Credit Agreement.                                                               (dd)   Additional Financial Covenants.  The Loan Parties shall each deliver a report to  the Administrative Agent on each Wednesday (or such later date as may be agreed to by the  Administrative Agent in writing in its sole discretion) showing compliance with the following covenants  as of the last day of the immediately preceding Measurement Period: (i) the aggregate amount of Loan  Parties' actual cash expenses and disbursements during such Measurement Period shall not be more than  110% of the projected cash expenses and disbursements for such Measurement Period as set forth in the  Approved Budget, (ii) the aggregate amount of Loan Parties' actual cash receipts during such  Measurement Period shall not be less than 90% of the projected cash receipts for such Measurement  Period as set forth in the Approved Budget, (iii) the Loan Parties' actual surgical cases performed during  such Measurement Period shall not be less than 90% of the projected surgical cases for such Measurement  Period as set forth in the Approved Budget, and on each Determination Date the Borrower shall provide  such reports to the Administrative Agent evidencing such compliance with the foregoing obligations.  The  foregoing covenant calculations shall exclude (x) fees and expenses paid to (A) the Loan Parties'  professionals (including attorneys and financial advisors) in connection with any restructuring, and (B)  the Administrative Agent's and the Super Priority Agent’s professionals (including attorneys and  attorney's financial advisors) and (y) all debt service payable in connection with the Credit Agreement  and the Super Priority Credit Agreement.  “Measurement Period” shall mean the one week period  immediately preceding each Determination Date.  The Loan Parties acknowledge and agree that a  violation of the covenants set forth in this clause (dd) shall be deemed an immediate additional Event of  Default under Article VIII of the Credit Agreement and will immediately terminate the Second  Forbearance Period.                     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 24   502196916 v6 1205867.00001  

 

             (ee)   Additional Budget Reporting.  The Loan Parties shall each deliver a report to the  Administrative Agent on each Wednesday (or such later date as may be agreed to by the Administrative  Agent in writing in its sole discretion) provide the Administrative Agent with a comparison of the actual  results of the Loan Parties during the most recent Measurement Period against each line item in the most  recent Approved Budget, which comparison shall be certified by the Chief Financial Officer of the  Borrower as true, correct and complete.                                                               (ff)   Material Agreements; Disposition of Collateral.  The Loan Parties shall not take  any action, including executing any term sheet, letter of intent or other document or agreement: (i)  designed to shut down or consolidate any existing operations or dispose of any assets (including, without  limitation, accounts receivable, equity interests, equipment or other personal or real property) of any Loan  Parties; or (ii) designed to obligate the Borrower or any of the Loan Parties for payment of fees or  commissions with respect to any financial, legal, collection, or third party services that may in any way  impact the value of or realization from the Collateral (including, but not limited to, outstanding  receivables), in each case without the express prior written consent of the Administrative Agent;  provided, that the Administrative Agent shall endeavor to respond to any request related to the foregoing  promptly upon the Loan Parties having provided to the Administrative Agent, the Administrative Agent's  counsel and Berkeley Research Group, LLC (i) notices of such proposed action, (ii) all relevant  documentation in respect thereof and (iii) the business rationale for the same.  Without limiting the  foregoing, the Loan Parties shall not (a) settle or sell the claims against payors in respect of the  outstanding accounts receivable without the prior written consent of the Administrative Agent or (b) shut  down or dispose of any operations of any Loan Party without obtaining the prior written consent of the  Administrative Agent; provided, that the Administrative Agent shall endeavor to respond to any request  related to the foregoing promptly upon the Loan Parties having provided to the Administrative Agent, the  Administrative Agent's counsel and Berkeley Research Group, LLC (i) notices of such proposed action,  (ii) all relevant documentation in respect thereof and (iii) the business rationale for the same.                              (gg)   Retainers.  The Loan Parties shall (i) not use any cash to pay retainers to  professionals without the express prior written consent of the Administrative Agent, and (ii) shall on or  before the Effective Date provide the Administrative Agent with a list of all retainers paid to professionals  prior to the Effective Date, detailing (x) the party that received such retainer, (y) the date such retainer  was paid and (z) the amount of such retainer.                                                                 (hh)   Transaction Covenants.  The Loan Parties shall comply with the transaction  covenants set forth in the Side Letter Agreement, dated as of the date hereof and executed by Parent and  incorporated herein for all purposes (the “Side Letter Agreement”).                                                                (ii)   Contingency Plans.  Each of the Loan Parties agrees to reasonably confer with  the Administrative Agent and its counsel to prepare for a possible consensual filing of the Loan Parties  under the Bankruptcy Code of the United States with a view toward avoiding the disruption of the Loan  Parties’ operations, minimizing costs and ensuring the orderly transition of the Loan Parties assets from  any such proceedings.  If the Loan Parties conclude that such a filing or filings are appropriate, the Loan  Parties shall provide to Administrative Agent and its counsel at least ten (10) calendar days prior to the  commencement by any Loan Party of a voluntary case under any Debtor Relief Laws or of the filing of  one or more petitions seeking to take advantage of any Debtor Relief Laws (any such action, a  “Bankruptcy Action”) (unless a shorter period of time is necessary due to exigent circumstances as  determined in good faith by the Loan Parties) (i) written notice of the commencement by any Loan Party  of a Bankruptcy Action and (ii) all proposed pleadings to be filed in the first days of any such Bankruptcy  Action, including, as applicable, all material first-day pleadings, interim and final financing and cash  collateral motions and orders, bid procedures and sale motions and orders, in each case in an effort to  reach agreement on the form and substance of drafts thereof.  The Loan Parties shall also reasonably      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 25   502196916 v6 1205867.00001  

 

confer with the Administrative Agent and its counsel regarding a disclosure statement, plan of  reorganization and other documentation expected to be filed in connection with any filings in connection  with any Bankruptcy Action or otherwise under the Bankruptcy Code of the United States.                 (jj)   Failure to Comply with the Second Forbearance Agreement Covenants.  The  failure by the Loan Parties to comply with any of the requirements set forth in Section 5 or set forth in the  Side Letter Agreement shall constitute an Event of Default under Section 8.1(b) of the Credit Agreement  and will result in the immediate termination of the Second Forbearance Period.                     6.    COSTS AND EXPENSES. The Loan Parties hereby reconfirm their obligations under the  Loan Documents, including Section 10.4 of the Credit Agreement, to make payments and reimbursements  in accordance with the terms thereof (including with respect to this Second Forbearance Agreement).          7.    REPRESENTATIONS AND WARRANTIES. To induce the Administrative Agent and  the other Lenders to enter into this Second Forbearance Agreement, each Loan Party represents and  warrants to the Administrative Agent and the other Lenders on and as of the Forbearance Effective Date  that, in each case:         (a)    the representations and warranties of the Loan Parties contained in Article V of the Credit  Agreement and in each other Loan Document are true and correct in all material respects (or, in the case  of any such representation and warranty that is subject to materiality or Material Adverse Effect  qualifications, in all respects) on and as of the Forbearance Effective Date, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they shall be true and  correct in all material respects (or, in the case of any such representation and warranty that is subject to  materiality or Material Adverse Effect qualifications, in all respects as of such earlier date); provided that  no representation or warranty shall be rendered inaccurate as a result of the occurrence and continuation  of the Specified Events of Default;           (b)   no Default or Event of Default exists and is continuing other than the Specified Events of  Default or as otherwise subject to this Second Forbearance Agreement;          (c)   the execution, delivery and performance by such Loan Party of this Second Forbearance  Agreement have been duly authorized by all necessary corporate and other organizational action and do  not and will not require any approval, consent, exemption, authorization, or other action by, or notice to,  or filing with, any Governmental Authority or any other Person other than the authorizations, approvals,  actions, notices and filings listed on Schedule 5.3 of the Disclosure Schedules, all of which have been  duly obtained, taken, given or made and are in full force and effect on the Forbearance Effective Date;          (d)   no Loan Party has sold or received partial payment for the assignment or sale of any of its  accounts receivable in connection with any arrangement involving any Loan Party or any non-Loan Party;          (e)   this Second Forbearance Agreement has been duly executed and delivered by each Loan  Party that is a party hereto and constitutes a legal, valid and binding obligation of such Loan Party,  enforceable against such Loan Party in accordance with its terms; provided that the enforceability hereof  is subject to general principles of equity, principles of good faith and fair dealing and to bankruptcy,  insolvency and similar Laws affecting the enforcement of creditors’ rights generally;          (f) this Second Forbearance Agreement was reviewed by each such Loan Party, who  acknowledges and agrees that such Loan Party (i) understands fully the terms of this Second Forbearance  Agreement and the consequences of the issuance hereof, (ii) has been afforded an opportunity to have this  Second Forbearance Agreement reviewed by, and to discuss this Second Forbearance Agreement with, such      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 26   502196916 v6 1205867.00001  

 

attorneys and other persons as such Loan Party may wish, and (iii) has entered into this Second Forbearance  Agreement of its own free will and accord and without threat or duress;          (g)   this Second Forbearance Agreement and all information furnished to the Administrative  Agent and the Lenders are made and furnished in good faith, for value and valuable consideration and this  Second Forbearance Agreement has not been made or induced by any fraud, duress or undue influence  exercised by the Administrative Agent, any Lender, or any other person.          8.    REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT AND THE LOAN  DOCUMENTS.          (a)    On and after the Effective Date, each reference in the Credit Agreement to “this Credit  Agreement,” “herein,” “hereto”, “hereof” and “hereunder” or words of like import referring to the Credit  Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit  Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall  mean and be a reference to the Credit Agreement, as modified by this Second Forbearance Agreement.            (b)   The Credit Agreement and each of the other Loan Documents, as specifically modified  by this Second Forbearance Agreement, are and shall continue to be in full force and effect and are  hereby in all respects ratified and confirmed.           (c)   The execution, delivery and effectiveness of this Second Forbearance Agreement shall  not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender  or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision  of any of the Loan Documents.  Without limiting the generality of the foregoing, the Collateral  Documents in effect immediately prior to the date hereof and all of the Collateral described therein in  existence immediately prior to the date hereof do and shall continue to secure the payment of all  Obligations of the Loan Parties under the Loan Documents, in each case, as modified by this Second  Forbearance Agreement.           9.    GOVERNING LAW; JURISDICTION.          (a)  THIS SECOND FORBEARANCE AGREEMENT AND ANY CLAIMS,  CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR  OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECOND  FORBEARANCE AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL  BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF  NEW YORK.         (b)    EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES  THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND  OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT  OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER, THE LC ISSUING  LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS  SECOND FORBEARANCE AGREEMENT, THE FIRST FORBEARANCE AGREEMENT, THE  FIRST LIMITED WAIVER, THE SECOND LIMITED WAIVER, THE THIRD LIMITED WAIVER,  THE FOURTH LIMITED WAIVER OR ANY OTHER LOAN DOCUMENT OR THE  TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE  COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE  UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY  APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO  IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH     SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 27   502196916 v6 1205867.00001  

 

COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION,  LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK  STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH  FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN  ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE  ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER  MANNER PROVIDED BY LAW. NOTHING IN THIS SECOND FORBEARANCE AGREEMENT OR  IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE  ADMINISTRATIVE AGENT, ANY LENDER OR THE LC ISSUING LENDER MAY OTHERWISE  HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS SECOND  FORBEARANCE AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN  PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.          10.   COUNTERPARTS. This Second Forbearance Agreement may be executed in any  number of counterparts and by the different parties hereto on separate counterparts, each of which  counterparts when executed and delivered shall be an original, but all of which shall together constitute  one and the same instrument. Delivery by facsimile or electronic transmission of an executed counterpart  of a signature page to this Second Forbearance Agreement shall be effective as delivery of an original  executed counterpart of this Second Forbearance Agreement.          11.   RELEASE. Each of the Parent, Holdings, the Borrower and each other Loan Party, on  behalf of itself and its Subsidiaries, successors, assigns and other legal representatives, hereby releases,  waives, and forever relinquishes all claims, demands, obligations, liabilities and causes of action of  whatever kind or nature (collectively, the “Claims”), whether known or unknown, which any of them  have, may have, or might assert at the time of the execution of this Second Forbearance Agreement or in  the future against the Administrative Agent, the Swingline Lender, the LC Issuing Bank, the Lenders  and/or their respective present and former parents, affiliates, participants, officers, directors, employees,  agents, attorneys, accountants, consultants, attorney’s consultants (including, without limitation, Berkeley  Research Group, LLC), and each of their respective successors and assigns (each a “Releasee”), directly  or indirectly, which occurred, existed, were taken, permitted or begun from the beginning of time through  the date hereof, arising out of, based upon, or in any manner connected with (a) this Second Forbearance  Agreement, the First Limited Waiver, the Second Limited Waiver, the Third Limited Waiver, the Fourth  Limited Waiver, the other Loan Documents and/or the administration thereof or the Obligations created  thereby, (b) any discussions, commitments, negotiations, conversations or communications with respect  to the refinancing, restructuring or collection of any of the Obligations, or (c) any matter related to the  foregoing; provided that (i) the foregoing shall not release Claims arising following the date hereof, and  (ii) such release shall not be available to any Releasee with respect to a Claim to the extent that such  Claim is determined by a court of competent jurisdiction by final and non-appealable judgment to have  resulted from the gross negligence or willful misconduct of such Releasee.          12.   ACKNOWLEDGMENTS; RESERVATION OF RIGHTS.          (a)    The Loan Parties hereby acknowledge and agree that the Specified Defaults constitute  Events of Default under the Credit Agreement and, in the absence of the agreement to forbear set forth in  Section 2 of this Second Forbearance Agreement, permits the Administrative Agent and the Lenders to,  among other things,  take any enforcement action or otherwise exercise any or all rights and remedies  provided for under the Loan Documents or applicable law including, without limitation, those described  in this Section 12.         (b)    The Loan Parties hereby acknowledge and agree that each of the Administrative Agent  and the Lenders expressly reserves all of its rights, powers, privileges and remedies under the Credit      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 28   502196916 v6 1205867.00001  

 

Agreement, other Loan Documents and/or applicable law, including, without limitation, its right at any  time from and after termination or expiration of the Second Forbearance Period, (i) to determine not to  make further Loans or issue Letters of Credit under the Credit Agreement as a result of the Specified  Defaults and/or to terminate their Commitments to make Loans and issue Letters of Credit, (ii) to  accelerate the Obligations, (iii) to charge the default rate of interest in respect of the Obligations (as of  any date from and after the date on which the Specified Defaults first occurred) and to enforce the  prohibition against incurring, continuing or converting any Loan as or into a Eurodollar Rate Loan, (iv) to  commence any legal or other action to collect any or all of the Obligations from any or all of the Loan  Parties, and any other person liable therefor and/or any collateral, (v) to foreclose or otherwise realize on  any or all of the collateral and/or as appropriate, set-off or apply to the payment of any or all of the  Obligations, any or all of the collateral, (vi) to take any other enforcement action or otherwise exercise  any or all rights and remedies provided for by any or all of the Credit Agreement, other Loan Documents  or applicable law, and (vii) to reject any forbearance, financial restructuring or other proposal made by or  on behalf of Borrower, any other Loan Party or any creditor or equity holder.  Each of the Administrative  Agent and the Lenders may exercise their respective rights, powers, privileges and remedies, including  those set forth in (i) through (vii) above at any time after the termination or expiration of the Second  Forbearance Period in its sole and absolute discretion without further notice.  No oral representations or  course of dealing on the part of the Administrative Agent, any Lender or any of its officers, employees or  agents, and no failure or delay by the Administrative Agent or any Lender with respect to the exercise of  any right, power, privilege or remedy under any of the Credit Agreement, other Loan Documents or  applicable law shall operate as a waiver thereof, and the single or partial exercise of any such right,  power, privilege or remedy shall not preclude any later exercise of any other right, power, privilege or  remedy.          (c)   The Loan Parties, the Administrative Agent and the Lenders party hereto hereby  acknowledge and agree that to date, the Administrative Agent and the Lenders have not elected to  exercise any such rights and remedies available to them.          13.   FINAL AGREEMENT.  THIS SECOND FORBEARANCE AGREEMENT AND  THE LOAN DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES  WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS SECOND  FORBEARANCE AGREEMENT IS EXECUTED.  NEITHER THIS SECOND FORBEARANCE  AGREEMENT NOR THE LOAN DOCUMENTS MAY BE CONTRADICTED BY EVIDENCE  OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE  PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.          14.   WAIVER OF JURY TRIAL.  TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW, EACH LOAN PARTY HEREBY IRREVOCABLY AND EXPRESSLY  WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDINGS OR  COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE)  ARISING OUT OF OR RELATING TO THIS SECOND FORBEARANCE AGREEMENT, THE  FIRST LIMITED WAIVER, THE SECOND LIMITED WAIVER, THE THIRD LIMITED  WAIVER, THE FOURTH LIMITED WAIVER OR THE TRANSACTIONS CONTEMPLATED  HEREBY OR THE ACTIONS OF ANY LENDER IN THE NEGOTIATION, ADMINISTRATION  OR ENFORCEMENT THEREOF.          15. WAIVER; MODIFICATION.  NO PROVISION OF THIS SECOND  FORBEARANCE AGREEMENT MAY BE WAIVED, CHANGED OR MODIFIED, OR THE  DISCHARGE THEREOF ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN  WRITING SIGNED BY THE PARTY AGAINST WHOM THE ENFORCEMENT OF ANY  WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT.  NO DELAY ON THE      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 29   502196916 v6 1205867.00001  

 

PART OF THE ADMINISTRATIVE AGENT OF THE LENDERS IN EXERCISING ANY  RIGHT, POWER OR PRIVILEGE HEREUNDER, SHALL OPERATE AS A WAIVER  THEREOF, NOR SHALL ANY WAIVER OF ANY RIGHT, POWER OR PRIVILEGE  HEREUNDER OPERATE AS A WAIVER OF ANY OTHER RIGHT, POWER OR PRIVILEGE  HEREUNDER, NOR SHALL ANY SINGLE OR PARTIAL EXERCISE OF ANY RIGHT,  POWER OR PRIVILEGE HEREUNDER PRECLUDE ANY OTHER OR FURTHER EXERCISE  THEREOF, OR THE EXERCISE OF ANY OTHER RIGHT, POWER OR PRIVILEGE  HEREUNDER.  ALL RIGHTS AND REMEDIES HEREIN PROVIDED ARE CUMULATIVE  AND ARE NOT EXCLUSIVE OF ANY RIGHTS OR REMEDIES, WHICH THE PARTIES  HERETO MAY OTHERWISE HAVE AT LAW OR IN EQUITY.          16.   TIME OF ESSENCE.  The parties to this Second Forbearance Agreement have agreed  specifically with regard to the times for performance set forth in this Second Forbearance Agreement.   Further, the parties to this Second Forbearance Agreement acknowledge that the agreements with regard  to the times for performance are material to this Second Forbearance Agreement.  Therefore, the parties  agree and acknowledge that time is of the essence to this Second Forbearance Agreement         17.    SURVIVAL.     All representations, warranties, covenants and agreements of the parties  made in this Second Forbearance Agreement shall survive the execution and delivery hereof, until such  time as all of the obligations of the parties hereto shall have lapsed in accordance with their respective  terms or shall have been discharged in full.          18.   NO COMMITMENT.  Loan Parties agree that the Administrative Agent and the Lenders  have not made any commitment or other agreement regarding the Credit Agreement, or the Loan  Documents, except as expressly set forth in this Second Forbearance Agreement, including any agreement  to waive the Specified Events of Default at the stated term of the Second Forbearance Period.  Loan  Parties warrant and represent that Loan Parties have not, and will not, rely on any commitment, further  agreement to forbear or other agreement on the part of the Administrative Agent or the Lenders unless  such commitment or agreement is in writing and signed by the Administrative Agent and the Lenders.          19.   HEADINGS.  The headings of the sections and subsections of this Second Forbearance  Agreement are inserted for convenience only and do not constitute a part of this Second Forbearance  Agreement.          20.   SUCCESSORS AND ASSIGNS. This Second Forbearance Agreement will inure to the  benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.          21.   SEVERABILITY.  Any provision of this Second Forbearance Agreement held by a court  of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of  this Second Forbearance Agreement, and the effect thereof shall be confined to the provision so held to be  invalid or unenforceable.                                    [signature pages follow]      SECOND LIMITED CONDITIONAL FORBEARANCE AGREEMENT   --Page 30   502196916 v6 1205867.00001  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                    AS                                  By:                                Name:                                ol-    a                                 Title:                                              ls   [SIGNATURE   PAGE  TO SECOND   LIMITED CONDITIONAL F'ORBEARANCE        AGREEMENTI 

 

 

 

 

 

 

 

 

 

                                                                                SCHEDULE 1                                                                                   CORE ASSETS                                                         1.     Plano Surgical Hospital (Hospital)            2.     First Street / Bellaire Surgical Hospital (Hospital)            3.     First Street Surgical Center (ASC)            4.     Elite Hospital Management (Hospital)            5.     Elite Center for Minimally Invasive Surgery (ASC)            6.     Houston Metro Orthopedic & Spine Surgery-Elite (ASC)            7.     Elite Sinus Spine & Ortho (ASC)            8.     Kirby Surgical Center (Hospital)            9.     Uptown Surgery Center (ASC)            10.     Piney Point Women’s Center (ASC)            11.     P5 Performance (Clinic)            12.     IOM / Peak Neuromonitoring (Ancillary Services)            13.     Anesthesia (Ancillary Services)            14.     First Assist (Ancillary Services)            15.     Scottsdale Liberty Hospital (Hospital)                                                                 502196916 v6 1205867.00001  

 

                                                                                         EXHIBIT A                                                                             SPECIFIED INDEBTEDNESS                                                     1)  Convertible Promissory Note, dated March 8, 2017, executed by Nobilis Vascular Texas,            LLC and made payable to Carlos R. Hamilton III, M.D.          2) Convertible Promissory Note, dated November 15, 2017, executed by Northstar Healthcare            Surgery Center – Houston, LLC and made payable to Elite Ambulatory Surgery Centers,            LLC.     502196916 v6 1205867.00001                                            

 

                                                                                   EXHIBIT B                                                                      INTERCOMPANY PROMISSORY NOTES1       1)  Intercompany Promissory Note, effective December 1, 2017, executed by Elite Sinus Spine and         Ortho, LLC and made payable to the order of Northstar Healthcare Surgery Center – Houston         LLC, in an aggregate principal amount of up to $500,000.00.     2)  Intercompany Promissory Note, effective December 1, 2017, executed by Elite Hospital         Management, LLC and made payable to the order of Northstar Healthcare Surgery Center –         Houston LLC, in an aggregate principal amount of up to $500,000.00.     3)  Intercompany Promissory Note, effective December 1, 2017, executed by $500,000.00 of Elite         Center for Minimally Invasive Surgery, LLC and made payable to the order of Northstar         Healthcare Surgery Center – Houston LLC, in an aggregate principal amount of up to         $500,000.00.     4)  Intercompany Promissory Note, effective December 1, 2017, executed by Houston Metro Ortho         and Spine Surgery Center, LLC and made payable to the order of Northstar Healthcare Surgery         Center – Houston LLC, in an aggregate principal amount of up to $500,000.00.                                                                                              1 The Loan Parties represent and warrant that no amounts are currently outstanding under any of the listed  Intercompany Promissory Notes.     502196916 v6 1205867.00001                                            

 

                                                                                                                             EXHIBIT C                                         LIEN FILING           UCC Filing against Perimeter Road Surgical Hospital, LLC, as Debtor, in favor of Cardinal         Health, as Secured Party, filed on 2/10/16 with the Arizona Secretary of State (Filing # 2016-        0006161).             502196916 v6 1205867.00001                                            

 

                                                                                        EXHIBIT D                                                                               LITIGATION MATTERS          1)  Houston Metro Ortho and Spine Surgery Center LLC v. Richard Francis, M.D., Juansrich            Ltd., and Juansrich Management, LLC, Cause No. 2015-24460, District Court of Harris            County (215th Judicial District Court)                     2) Leo Van ‘T Hoofd, Individually and On Behalf of All Others Similarly Situated v. Nobilis            Health Corp., Harry Fleming, David Young, and Kenneth J. Klein, United States District            Court, Southern District of Texas, Houston Division.             502196916 v6 1205867.00001

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