Document:

Exhibit 10.1

 

AMENDED AND RESTATED LEASE AGREEMENT

 

THIS AMENDED AND
RESTATED LEASE AGREEMENT (“Lease”) dated effective as of September 17, 2010 (the “Effective
Date”) is entered into by and between Prevarian Hospital Partners, LP, a Texas limited partnership, having its principal
office at 5949 Sherry Lane, Suite 835, Dallas, TX 75225 ( “Landlord”) and CTRH, LLC, a Delaware limited liability
company, having its principal office at 7733 Forsyth Blvd., Suite 2300 St. Louis, MO 63105-1806 (“Tenant”).

 

WHEREAS,
Landlord and Tenant entered into that certain Lease Agreement dated July 22, 2010, a First Amendment to Lease Agreement dated July
30, 2010, a Second Amendment to Lease Agreement dated August 10, 2010, a Third Amendment to Lease dated August 25, 2010, a Fourth
Amendment dated August 31, 2010 and a Fifth Amendment to Lease dated September 10, 2010 (collectively, the “Original Lease”)
with respect to the Leased Property defined below.

 

WHEREAS, Landlord and Tenant
desire to amend and restate the Original Lease, as hereinafter provided.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant do hereby
agree to amend and restate the Original Lease as of the Effective Date, as follows:

 

ARTICLE 1.

LEASED PROPERTY; TERM

 

Upon and
subject to the terms and conditions hereinafter set forth, Landlord leases to Tenant and Tenant rents from Landlord all of Landlord’s
rights and interest in and to the following real property (collectively, the “Leased Property”):

 

(a)
        the real property more particularly described on Exhibit A attached
hereto together with all covenants, licenses, privileges and benefits thereto belonging, any and all easements, rights-of-way,
rights of ingress and egress or other interests of Landlord in, on or to any land, highway, street, road or avenue, open or proposed,
in, on, across, in front of, abutting or adjoining such real property including, all strips and
gores adjacent to or lying between such real property and any adjacent real property (the “Land”); 

 

(b)
        all buildings, structures, fixtures and other improvements of every kind including
Landlord’s interest in all alleyways and connecting hallways, crosswalks, sidewalks, landscaping, parking lots and structures
appurtenant to such buildings and structures presently or hereafter situated upon the Land, and all of Landlord’s interest, if
any, in drainage and all above-ground and underground utility structures (collectively, the “Improvements”);

 

(c)
        all permanently affixed equipment, machinery, fixtures and other items of
real and/or personal property, including all components thereof, now and hereafter located in, on or used in connection with,
and permanently affixed to or incorporated into the Improvements, including all furnaces, boilers, heaters, electrical equipment,
heating, plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air-cooling
and air conditioning systems and apparatus, sprinkler systems and fire and theft protection

 

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equipment, carpet, moveable or immoveable
walls or partitions and built-in oxygen and vacuum systems, all of which are hereby deemed by the parties hereto to constitute
real estate, together with all replacements, modifications, alterations and additions thereto, but specifically excluding all items
included within the category of Personal Property (collectively, the’ “Fixtures”); and

 

(d)
         to the extent permitted by law, all permits, approvals and other intangible
property or any interest therein now or hereafter owned or held by Landlord in connection with the Leased Property or any business
or businesses now or hereafter conducted by Tenant or with the use thereof, including all contract rights, agreements, trade names,
water rights and reservations, zoning rights, business licenses and warranties (including those relating to construction or fabrication)
related to the Leased Property or any part thereof, but specifically excluding the general corporate trademarks, service marks,
logos or insignia or books and records of Tenant; and

 

(e)
        all site plans, surveys, soil and substrata studies, architectural drawings,
plans and specifications, engineering plans and studies, floor plans, landscape plans, and other plans and studies that relate
to the Land or the Improvements and are in Tenant’s possession or control;

 

SUBJECT,
HOWEVER, to the matters set forth on Exhibit B attached hereto (the “Permitted Exceptions”), to have
and to hold for a fixed term of fifteen (15) years (the “Initial Term”) from and after the Commencement Date
(hereafter defined) of the Lease and continuing for any Extension Term properly and timely elected pursuant to Article 31 hereof.
The “Term” of this Lease shall be the Initial Term and any Extension Term exercised by Tenant pursuant to terms
hereof. The Commencement Date of this Lease (the “Commencement Date”) shall be the first day of the first calendar
month following the date on which Landlord has achieved Substantial Completion of Landlord’s Work (as defined in, and in
accordance with, the work letter attached hereto and made a part hereof as Exhibit G) (the “Work Letter”).
The taking of possession of the Leased Property by Tenant shall evidence Tenant’s acceptance of the Leased Property and
Landlord’s Work, subject in all respects to the terms of this Lease (including, without limitation, the Work Letter); provided,
however, and notwithstanding the foregoing, Tenant’s taking of possession shall not relieve Landlord from any obligation
to complete or correct any work to be performed or corrected by Landlord under the terms of this Lease (including, without limitation,
the Work Letter). So long as the Commencement Date has occurred, within ten (10) days after Landlord’s request, Tenant shall
execute and deliver to Landlord an Acceptance of Premises Memorandum in the form of Exhibit D attached hereto confirming,
to the extent true and accurate, (1) the Commencement Date, (2) that Tenant has accepted the Leased Property, and (3) that Landlord
has performed all of its obligations with respect to the delivery of the Leased Property.

 

ARTICLE 2.

RENT

 

2.1        Minimum
Rent and Adjustments to Minimum Rent. Commencing upon the Commencement Date and during the Term hereof, Tenant shall pay
to Landlord, without notice, demand, set off or counterclaim, in advance in lawful money of the United States of America, at Landlord’s
address set forth herein or at such other place or to such other person, firms or corporations as Landlord from time to time may
designate in writing, the Minimum Rent, as

 

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adjusted
annually pursuant to Section 2.1(b) hereof during the Term or as may be adjusted pursuant to Section 2.1(c) hereof during the
Term. Landlord and Tenant agree that, upon the execution of this Lease, the minimum rent amounts payable to Landlord in each Lease
year as set forth on Exhibit C are only estimated minimum rents based upon the Preliminary Project Budget attached hereto
as Exhibit I. Landlord and Tenant shall finalize the Final Construction Documents for the Project and the Final Project
Budget in accordance with the terms of the Work Letter attached hereto as Exhibit G. The parties stipulate and agree the
Final Project Budget may be amended and increased by mutual agreement of Landlord and Tenant if costs increase due to changes
in the rules, regulations or policies of the Texas Department of State Health Services (“TDSHS”)
after the date the parties agree on the Final Project Budget, and both parties agree to act in a good faith, commercially reasonable
manner with respect to any such agreement. The term “Minimum Rent” used
throughout this Lease shall be determined as set forth in Sections 2.1(a) and 2.1(b) below. 

 

The Minimum
Rent shall be payable in advance in twelve (12) equal, consecutive monthly installments, on the first day of each calendar month
of the Term. Minimum Rent shall be prorated as to any partial month, and is subject to adjustment as provided in Section 2.1(b)
below. Minimum Rent shall commence on the Commencement Date and shall be prorated on a daily basis if the Commencement Date is
not the first day of a month for the remainder of that month. Rent shall be payable at such address as Landlord may designate from
time to time by written notice to Tenant.

 

(a)         Minimum
Rent — Establishing Year One of the Lease Term. Final
Project Plans and Final Project Budget shall be approved by both Landlord and Tenant in accordance with the terms of the Work
Letter attached hereto as Exhibit G. The Final Project Budget shall specifically allocate any amount for “Contingencies.”
The annual Minimum Rent for Year One of the Lease Term shall be the approved Final Project Budget multiplied by a rental factor
of eleven percent (11 %); provided, however, that (a) to the extent that the amount designated as “Contingencies”
is not actually expended by Landlord in the course of completing Landlord’s Work, one half (50%) of such unused amount shall
be deducted from the Final Project Budget prior to making such computation, (b) to the extent that Tenant makes a Tenant Change
Request which has the effect of reducing costs incurred by Landlord to Substantially Complete the Landlord’s Work, the amount
of such reduction shall be deducted from the Final Project Budget prior to making such computation. The annual Minimum Rent for
Year One, as so determined, shall be the “Year One Annual Minimum Rent” for
purposes hereof. Notwithstanding the foregoing, (i) the annual Minimum Rent for the first three months of Year One shall be entirely
abated, (ii) the annual Minimum Rent for the fourth, fifth and sixth months of Year One shall be forty percent (40%) of the Year
One Annual Minimum Rent, (iii) the annual Minimum Rent for the seventh, eighth and ninth months of Year One shall be sixty percent
(60%) of the Year One Annual Minimum Rent, and (iv) full Year One Annual Minimum Rent shall be charged only for the tenth, eleventh
and twelfth months of Year One. Once the Minimum Rent for Year One of the Lease Term has been determined in accordance herewith,
Landlord and Tenant shall each execute a revised Exhibit C - Rent Schedule reflecting the final Minimum Rent due in each
year of the Initial Lease Term and any Extension Terms and each shall attach this revised Exhibit C-Rent Schedule to this
Lease and clearly mark and identify it as having been calculated in accordance herewith. 

 

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(b)          Increases
to Minimum Rent. The annual Minimum Rent due and payable
for each year of the Lease Term, including each year of any Extension Term, shall increase annually on each anniversary of the
Commencement Date, by three percent (3%) of the annual Minimum Rent for the immediately preceding year. However, for purposes
of the second lease year, Minimum Rent for such second year shall be one hundred three percent (103%) of the Minimum Rent for
Year One without the abatements provided for in Section 2.1(a). 

 

2.2         Additional
Charges. Tenant will also pay and discharge as
and when due (a) all other amounts, liabilities, obligations and Impositions which Tenant assumes or agrees to pay under this
Lease including, to the extent applicable, any amounts due by Landlord under any assessments, tax, fees, or other charges
related to the ownership and leasing of the Leased Property that accrue during the Term of this Lease, and (b) in the event
of any failure on the part of Tenant to pay any of those items referred to in clause (a) above of which it received all
notice required hereunder, Tenant will also promptly pay and discharge every fine, penalty, interest and cost which may be
added for non-payment or late payment of such items (the items referred to in clauses (a) and (b) above being referred to
herein collectively as the “Additional Charges”), and Landlord shall have all legal, equitable and
contractual rights, powers and remedies provided in this Lease, by statute or otherwise, in the case of non-payment of the
Additional Charges, as well as the Minimum Rent. If any payment due to Landlord is not delivered to Landlord within ten (10)
days after written notice from Landlord, a late charge of five percent (5%) of the amount payable shall be due and payable by
Tenant as additional Rent. In addition, amounts owing to Landlord which are not received by Landlord within ten (10) days
after written notice from Landlord shall bear interest from the eleventh (11th) day after the due date until paid
at the rate of the Overdue Rate. 

 

The Minimum Rent, Additional
Charges, late fees and Impositions are collectively referred to herein as “Rent” or “Rental.” 

 

2.3         Net
Lease. Except for Landlord’s construction obligations
set forth in the Work Letter attached hereto as Exhibit G to this Lease, such other expenses which Landlord has agreed
hereunder shall be Landlord’s responsibility and any indemnity obligations owing by Landlord to Tenant under the terms of
this Lease, this is an absolutely net lease and the Minimum Rent, Additional Charges and all other sums payable hereunder by Tenant
shall be paid without notice (except as expressly provided herein), demand, set-off, counterclaim, abatement, suspension, deduction
or defense. It is the intention of the parties hereto that, except as expressly provided herein, the Minimum Rent shall be an
absolutely net return to Landlord throughout the Term of this Lease. Except as otherwise expressly set forth herein, Tenant shall
bear all future costs and improvements, foreseen or unforeseen, in connection with the Leased Property. 

 

2.4        Security
for Lease. 

 

(a)       Control
of Tenant. Tenant represents and warrants to Landlord
that upon the execution of this Lease and further covenants that at all times thereafter and during the Term of this Lease (including
any Extension Terms), it is and shall be a special purpose entity formed under the Laws of the State of Texas exclusively for
the purpose of owning and operating a hospital and other purposes incidental or ancillary thereto located on the Leased Property.
Tenant further represents and warrants to Landlord that its initial members (the “Initial 

 

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Members”)
are Seton Healthcare f/k/a Daughters of Charity Health Services of Austin, a Texas non-profit corporation, and RehabCare Hospital
Holdings, L.L.C., a Delaware limited liability company. Tenant represents, warrants and covenants to Landlord that except in the
event of a Permitted Transfer of this Lease or assignment of an Initial Member’s interest in Tenant under Section 20 hereof, then
throughout the Term of this Lease, including any Extension Terms, one or both of the Initial Members and/or any Affiliate of the
Initial Members, shall collectively own and Control 100% of the membership interests in Tenant. 

 

(b)        Guaranty.
As a condition precedent to Landlord’s execution of this Lease, Tenant shall cause RehabCare
Group, Inc. to execute the Guaranty of Lease attached as Exhibit F and incorporated herein by reference, which guarantee
shall require RehabCare Group, Inc. (“the “Guarantor”) to guarantee all of the obligations of
Tenant under this Lease (but not exceeding 80% of any outstanding liability of Tenant) (the “Lease Guaranty”).
Additionally, during all periods in which the Lease is in force and effect, Tenant shall deliver such financial statements as
are required pursuant to Article 21 hereof. 

 

(c)        Security
Deposit. No security deposit of any kind shall be required of Tenant in conjunction
with this Lease. 

 

ARTICLE 3.

IMPOSITIONS

 

3.1        Payment
of Impositions.

 

(a)         Payment
of Taxes and Assessments. 

 

(i)
        Subject to Section 3(a)(ii) below, Tenant shall pay and discharge on or before
the due date, and promptly provide Landlord with written evidence of the payment of same, all real estate taxes, assessments,
special assessments and dues which are levied or imposed upon the Leased Property during the Term. Landlord shall promptly provide
Tenant with copies of all real estate tax notices and assessments actually received by Landlord. In the event of any failure on
the part of Tenant to pay any of such real estate taxes and assessments as and when payable, Tenant will also promptly pay and
reimburse Landlord and/or its Affiliates for all such amounts paid by Landlord and/or its Affiliates and promptly pay and discharge
every fine, penalty, interest and cost which may be added for non-payment or late payment of such items, and Landlord shall have
all legal, equitable and contractual rights, powers and remedies provided in this Lease, by statute, or otherwise, in the case
of non-payment of the real estate taxes and assessments, as in the case of the Minimum Rent.

 

(ii)       Notwithstanding
Section 3.1(a)(i) to the contrary, at any point during the term, Tenant shall, upon Landlord’s written request, pay to Landlord
the known or estimated yearly real estate taxes and assessments in the manner set forth in this Section 3.1(a)(ii); provided,
however, that Landlord shall make such written request only if (A) Tenant has committed an Event of Default hereunder (regardless
of whether such Event of Default is later cured), or (B) Tenant fails, at any time, to make any payment due pursuant to Section
3.1(a)(i) in a timely manner, or (C) Landlord reasonably deems itself insecure with respect to Tenant’s ability to perform its
financial obligations under this Lease. Following such written notice by

 

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Landlord, Tenant shall pay to Landlord
the known or estimated yearly real estate taxes and assessments payable with respect to the Leased Property in monthly payments
equal to one-twelfth of the known or estimated yearly real estate taxes and assessments next payable with respect to the Leased
Property, but only the real estate taxes and assessments which accrue after the Commencement Date and during the Term of the Lease.
The amounts delivered to Landlord pursuant to this Section 3.1(a)(ii) will be held in escrow by Landlord to pay for the taxes and
assessments due with respect to the Leased Property. From time to time, but not more than once a year, Landlord may reasonably
re-estimate the amount of real estate taxes and assessments, and in such event Landlord shall notify Tenant, in writing, of such
re-estimate and fix future monthly installments for the remaining period prior to the next tax and assessment due date in an amount
sufficient to pay the re-estimated amount over the balance of such period after giving credit for payments made by Tenant on the
previous estimate.  If the total monthly payments made by Tenant pursuant to this Section 3.1(a)(ii) shall exceed the amount
of payments necessary for said taxes and assessments, such excess shall be promptly returned to Tenant; but if the total of such
monthly payments so made under this Section 3.1(a)(ii) shall be insufficient to pay such taxes and assessments when due, then
Tenant shall pay to Landlord such amount as may be necessary to make up the deficiency within ten (10) days of receipt of written
notice by the Landlord. Landlord shall pay all taxes, assessments and other impositions with respect to the Leased Property to
the appropriate taxing authority on or before the due date, and promptly provide Tenant evidence of the payment of same.

 

(b)         Other
Impositions. Subject to Article 10 relating to permitted contests, Tenant will pay, or cause
to be paid, all Impositions (other than real estate taxes and assessments) accruing after the Commencement Date of this Lease
and during the Term of this Lease before any fine, penalty, interest or cost may be added for non-payment, such payments to be
made directly to the taxing authorities where feasible, and Tenant will promptly, upon Landlord’s written request, furnish to
Landlord copies of official receipts or other satisfactory proof evidencing such payments. Subject to Article 10 relating to permitted
contests, in any and all events Tenant must pay such Impositions prior to the date such Impositions become a lien upon the Leased
Property or any part thereof. Notwithstanding the foregoing, if any such Imposition may lawfully be paid in installments (whether
or not interest shall accrue on the unpaid balance of such Imposition), Tenant may exercise the option to pay the same (and any
accrued interest on the unpaid balance of such Imposition) in installments and, in such event, shall pay such installments during
the Term hereof as the same become due and before any fine, penalty, premium, further interest or cost may be added thereto. 

 

Landlord,
at its expense, shall, to the extent permitted by applicable law, prepare and file all tax returns and reports as may be required
by governmental authorities in respect of Landlord’s net income, gross receipts, franchise taxes, margin taxes and taxes on its
capital stock. Tenant, at its expense, shall, to the extent permitted or required by applicable laws and regulations, prepare
and file all other tax returns and reports in respect of any Imposition as may be required by governmental authorities.

 

If any
refund shall be due from any taxing authority in respect of any Imposition paid by Tenant, the same shall be paid over to or retained
by Tenant. Landlord and Tenant shall, upon the written request of the other, provide such data as is maintained by the party to
whom the request is made with respect to the Leased Property as may be necessary to prepare any required returns

 

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and reports. In the event governmental
authorities classify any property covered by this Lease as personal property, Tenant shall file all such personal property tax
returns in such jurisdictions where filing is required. Landlord and Tenant will provide the other party, upon written request,
with cost and depreciation records necessary for filing returns for any property so classified as personal property. Where Landlord
is legally required to file personal property tax returns, and Tenant is obligated for the same hereunder, Tenant will be provided
with copies of assessment notices in sufficient time for Tenant to file a protest. Tenant may, upon giving thirty (30) days’ prior
written notice to Landlord, at Tenant’s option and at Tenant’s sole cost and expense, protest, appeal, or institute such other
proceedings as Tenant may deem appropriate to effect a reduction of real estate or personal property assessments, and Landlord,
if requested by Tenant and at Tenant’s expense as aforesaid, shall fully cooperate with Tenant in such protest, appeal, or other
action. Billings for reimbursement by Tenant to Landlord of personal property taxes shall be accompanied by copies of an invoice
therefore and payments thereof which identify the personal property with respect to which such payments are made. Landlord will
cooperate with Tenant in order that Tenant may fulfill its obligations hereunder, including the execution of any instruments or
documents reasonably requested by Tenant. Landlord shall promptly provide Tenant with a copy of all tax notices, statements and
other correspondence submitted to Landlord by any taxing authority pertaining to the Leased Property.

 

3.2         Proration
of Impositions. Impositions imposed in respect of the tax-fiscal period during which the Term commences and terminates
shall be prorated between Landlord and Tenant, whether or not such Imposition is imposed before or after such termination, and
Tenant’s and Landlord’s obligation to pay their prorated shares thereof shall survive such termination.

 

3.3         Utility
Charges. Tenant will contract for, in its own name, and will pay or cause to be paid all charges for, electricity, power,
gas, sewer, oil, water, telephone, cable television or satellite television, high-speed data connections and other utilities
used in the Leased Property during the Term.

 

3.4         Insurance
Premiums. Tenant will contract for, in its own name, and will pay or cause to be paid all premiums for, the insurance
coverage required to be maintained by Tenant pursuant to Article 11 during the Term.

 

3.5        Excluded
Expenses. Notwithstanding anything to the contrary set forth in this Lease, Tenant shall in no manner be liable for any
of the following obligations, and such shall not be included in any calculation of Minimum Rent, nor shall such be an Imposition
to be paid by Tenant, and Landlord shall pay, or cause to be paid, the following: (i) any costs occurred by Landlord’s breach
of any covenants or obligations under this Lease; (ii) costs resulting from violation of any environmental laws or Hazardous Materials
Laws by Landlord or any third party (except that Tenant remains liable for any violation of environmental laws or Hazardous Materials
Laws by Tenant and its agents, employees, contractors, subcontractors, visitors, suppliers and vendors); (iii) costs necessary
to correct faulty design or defective construction of the Leased Property; (iv) any expenses for Landlord’s overhead, office
costs, staff salary, benefits or other compensation of any Landlord or affiliated entity or employee; (v) any costs incurred because
of Landlord’s negligence; (vi) any fines Landlord must pay as a result of Landlord’s failure to comply with laws,
ordinances or municipal codes and the like during acquisition of the

 

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Land and construction of the Improvements;
(vii) any fees and expenses paid to affiliates of Landlord in excess of market rates; (viii) Landlord’s advertising and promotional
expenses; (ix) interest on financing incurred by Landlord (except as specifically included in the Final Project Budget) and any
and all principal amortization of debts incurred by Landlord; (x) rental on ground leases or other underlying leases; (xi) costs
of any items for which Landlord is reimbursed by any insurance; (xii) attorneys fees and accounting and professional fees (except
as specifically included in the Final Project Budget), other than attorneys fees which are expressly provided for elsewhere in
this Lease; (xiii) charitable or political contributions; and (xiv) any management fees of any kind. In no event shall Landlord
recover any item of cost more than once.

 

ARTICLE 4.

OWNERSHIP OF LEASED PROPERTY

 

4.1         Ownership
of the Property. Tenant acknowledges that the Leased Property is the property of Landlord and that Tenant has only the
right to the possession and use of the Leased Property during the Term hereof and upon the terms and conditions of this Lease.

 

4.2         Personal
Property. Tenant may (and shall as provided herein below), at its expense, install, affix or assemble or place on any
parcels of the Land or in any of the Improvements any items of the Personal Property, and may remove, replace or substitute for
the same from time to time in the ordinary course of Tenant’s business. Tenant shall provide and maintain  during the entire
Term all such Personal Property as shall be necessary in order to operate the Facility in compliance with all licensure and certification
requirements, in compliance with all applicable Legal Requirements and Insurance Requirements and otherwise in accordance with
customary practice in the industry for the Permitted Use.

 

ARTICLE 5.

CONDITION AND USE OF LEASED PROPERTY

 

5.1        Condition
of the Leased Property. Landlord shall deliver the Leased Property to Tenant in such condition that the Improvements shall
not encroach upon any property, street or right-of-way adjacent to the Leased Property, and shall not violate the agreements or
conditions contained in any applicable Legal Requirement and any of the Permitted Exceptions, and shall not impair the rights
of others under any easement or right-of-way to which the Leased Property is subject.

 

5.2        Licenses
and Permits. 

 

(a)         TDSHS
Approval and Other Permits. In order for Tenant to operate the Facility, Landlord will apply for and Tenant must obtain
a notice to proceed ( “Final Approval”) from TDSHS per Title 25 of the Texas Administrative Code, Chapter 133,
Hospital Licensing Section 133.168(c)(3). Although applied for in the name of Tenant, the application for Final Approval from
TDSHS will be prepared by Landlord’s architect, and Tenant shall have the right to review and approve any submission to TDSHS
before it is submitted by Landlord or Landlord’s architect. In order to obtain Final Approval from TDSHS, (i) the Facility must
meet the requirements of TDSHS, and (ii) the Facility must be equipped with sufficient furniture,

 

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fixtures, and equipment to meet the requirements
of TDSHS. If Final Approval is not granted by TDSHS, Tenant shall have the right to make submissions on its own behalf. Likewise,
in order for Tenant to operate the Facility, Tenant must obtain accreditation with the Joint Commission (the “Accreditation”)
and a certificate of occupancy from the City of Austin required for Tenant to legally and permissibly occupy the Premises (the
“CO”). The parties stipulate and agree that the Tenant, at its sole cost and expense, will supply and install
the furniture, fixtures and equipment described on Exhibit E attached hereto, and any other personal property necessary
to obtain licensure by TDSHS (which obligations are referred to herein as “Tenant’s Fixture Obligations”).
Except for Tenant’s Fixture Obligations, Landlord shall construct and complete the Improvements and any other physical improvements
to the Land or Facility pursuant to the Work Letter attached hereto as Exhibit G that are Landlord’s responsibility,
as necessary for Tenant to obtain Final Approval from TDSHS, the Accreditation and the CO. Tenant, at its sole cost and expense,
is responsible for any “operational” requirements imposed on Tenant by TDSHS and the Joint Commission which do not
require physical improvements to the Land or Facility.

 

As clarification,
except as otherwise expressly set forth herein, all license(s), approval(s), permit(s), certification(s) or accreditation(s) to
commence operations of the Leased Property for Tenant’s Permitted Use (other than as provided above) shall be applied for
by Tenant in a timely manner. Except as otherwise expressly set forth herein, Landlord is not responsible for completing such
license(s), approvals(s), permit(s), certification(s) or accreditation(s); provided, however, Landlord shall construct and complete
the Improvements in such a manner and condition that the Leased Property will meet the requirements of TDSHS, the Joint Commission
and the City of Austin’s requirements for issuance of the CO. In no way shall Landlord be responsible for a failure, rejection
or denial of approval of any permit or license due to Tenant’s failure to perform the Tenant’s Fixture Obligations,
Tenant’s responsibilities in this Section 5.1, or pursuant to the Work Letter attached as Exhibit G hereto. Nor shall
Landlord be responsible for performing or completing “Tenant’s Work” (as defined therein). However, the parties
stipulate and agree that Substantial Completion of Landlord’s Work shall not be achieved if the Leased Property is not delivered
in a condition that, so long as Tenant performs its obligations hereunder, (a) Tenant may obtain Final Approval from TDSHS, and
(b) the CO is issued by the City of Austin.

 

Prior
to the taking of possession, Tenant and Landlord will prepare the Punchlist related to the Leased Property in the manner contemplated
in the Work Letter attached hereto as Exhibit G. All Punchlist Items will be completed or corrected at the expense of Landlord,
if the Punchlist Items are part of Landlord’s Work under the Work Letter attached hereto as Exhibit G. Tenant’s
taking of possession prior to the completion of the Punchlist Items shall not relieve Landlord from any obligation to complete
any of Landlord’s Work to be performed by Landlord under the terms of the Work Letter attached hereto as Exhibit G.

 

(b)         Commencement
Date. Landlord and Tenant acknowledge that the Commencement Date of this Lease shall be
the first day of the calendar month following the date on which Landlord has achieved Substantial Completion of Landlord’s
Work under the Work Letter attached hereto as Exhibit G. 

 

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(c)
         State Licensure and Accreditation Related to Operations of the Leased
Property. Except for the CO (which shall be Landlord’s responsibility
as provided in subsection (a) above) and the Final Approval (which Landlord shall apply for, as provided in subsection (a) above),
Tenant must timely apply for (and provide Landlord with a copy of) and use commercially reasonable efforts to obtain all licenses
and permits required by any applicable governmental authority for the operation of the in-patient rehabilitation facility. Except
for Landlord’s responsibilities to construct and complete the Improvements pursuant to this Lease and the Work Letter attached
hereto as Exhibit G, any other improvements, fixtures or personal property or other work or matters to be completed that
are necessary for Tenant to obtain any required license(s), approvals(s), permit(s), certification(s) or accreditation(s) to operate
the Leased Property for its Permitted Use shall be Tenant’s sole responsibility and cost, including the items set forth
on Exhibit E attached hereto. 

 

5.3         Use
of the Leased Property and Exclusivity. After the Commencement Date and during the
entire Term, Tenant shall use or cause to be used the Leased Property only as a hospital, a licensed long term acute care facility,
an in-patient or outpatient rehabilitation facility, an outpatient surgery center, a psychological hospital, a skilled nursing
facility or for such other uses as are incidental thereto (the “Permitted Use”). Tenant shall not use
the Leased Property or any portion thereof for any other use, business, or activity, without the prior written consent of Landlord.

 

(a)
         Tenant covenants that at its own cost and expense during the Lease Term,
it will obtain and maintain all material governmental approvals needed to use and operate the Leased Property for its Permitted
Use in compliance with all applicable Legal Requirements. Tenant shall provide Landlord with a copy of any renewal of any permit
or license issued to Tenant, including any renewal of Tenant’s TDSHS approval, within ten (10) days of Landlord’s written request
for same.

 

(b)
        At any time while this Lease is in effect, neither Landlord nor any affiliates
or subsidiaries shall directly or indirectly develop or enter into any agreement to develop (collectively “Assist
in Development”) a physical rehabilitation facility competitive with the business conducted
by Tenant at the Leased Property within the County of Travis County, Texas. For the purposes hereof, and without limiting the
generality of the foregoing, Landlord shall be deemed to Assist in Development such a business indirectly if Landlord shall become
a member of a joint venture or partnership, or manager, shareholder, officer or director of a corporation, that Assists in Development
of such a competitive business. The foregoing restrictions shall not, however, prevent Landlord from (1) Assisting in Development
a facility within Travis County. Texas whose primary purpose is not a physical rehabilitation facility competitive with the business
conducted by Tenant at the Leased Premises but at. which physical rehabilitation services are rendered so long as such rehabilitation
services are incidental to the other non-competitive services offered in such facility, or (2) acquiring, owning and leasing other
physical rehabilitation facilities within Travis County, Texas, which physical rehabilitation facilities constitute a portion
of a larger group or portfolio of healthcare facilities acquired by Landlord or its affiliates. In the event of any termination
of this Lease by reason of Landlord’s default, Landlord agrees not to Assist in Development of any such competitive business within
the County of Travis, Texas for a period of time equal to the remainder of the term of the Lease if it had not been terminated.

 

    	 	10	 

     

    

 

(c)          Tenant
shall not commit or suffer to be committed any material waste on the Leased Property, or in the Facility, nor shall Tenant cause
or permit any nuisance thereon.

 

(d)
         Tenant shall neither suffer nor permit the Leased Property or any portion
thereof, including any Capital Addition, to be used in such a manner as (i) might reasonably tend to impair Landlord’s (or Tenant’s,
as the case may be) title thereto or to any portion thereof, or (ii) may reasonably result in a claim or claims of adverse usage
or adverse possession by the public, as such, or of implied dedication of the Leased Property or any portion thereof.

 

(e)
         Tenant will not utilize any Hazardous Materials on the Leased Property
except in substantial accordance with applicable Legal. Requirements and will not permit any contamination or release of Hazardous
Materials which may require remediation under any applicable Hazardous Materials Law. Tenant agrees not to dispose of any Hazardous
Materials or substances within the sewage system of the Leased Property in violation of any applicable Hazardous Materials Law.

 

At Tenant’s
sole liability, risk, cost and expense, Tenant shall provide proper receptacles and containers for all bio-hazardous medical waste
and shall make such arrangements for the disposal of same as shall be necessary, proper and/or required for the health and safety
of the occupants and users of the Leased Property. All such disposal shall be in strict compliance with applicable laws and regulations.
Landlord may, but shall not be obligated to, review and approve such arrangements (in which case such approval shall not be unreasonably
withheld, conditioned or delayed), but no such review or approval shall impose any liability on Landlord with respect to such disposal.
Landlord assumes no duty, obligation or liability with respect to Tenant’s bio-hazardous medical waste.

 

Except as
required in connection with the ordinary course of operating Tenant’s business in a manner consistent with the Permitted Use of
the Leased Property, Tenant shall not engage in any activity in, on or about the Leased Property which constitutes a Reportable
Use (as hereinafter defined) of Hazardous Materials without the express prior written consent of Landlord and compliance in a timely
manner (at Tenant’s sole cost and expense) with all applicable laws. “Reportable Use” shall mean (i) the installation
or use of any above or below ground storage tank, or (ii) the generation, possession, storage of, transportation, or disposal of
a Hazardous Material that requires a permit from, or with respect to which a report, notice, registration or business plan is required
to be filed with any governmental authority. Reportable Use shall also include Tenant’s being responsible for the presence in,
on or about the Leased Property of a Hazardous Material with respect to which any applicable law requires that a notice be given
to persons entering or occupying the Leased Property. Notwithstanding the foregoing, Tenant shall be permitted, without Landlord’s
prior consent, but in compliance with all applicable laws, to use any ordinary and customary materials reasonably required to be
used by Tenant in the normal course of Tenant’s business on the Leased Property, so long as such use is not a Reportable Use and
does not expose the Leased Property or neighboring properties to any meaningful risk of contamination or damage or expose Landlord
to any liability thereof. In addition, Landlord may but without any obligation to do so, condition its consent to the use or presence
of any Hazardous Materials, activity or storage tank by Tenant upon Tenant giving Landlord such additional assurances as Landlord,
in its reasonable discretion, deems necessary to protect itself, the public, the Leased Property and the environment against damage,

 

    	 	11	 

     

    

 

contamination or injury and/or liability
therefrom or therefor, including; but not limited to, the installation (and removal on or before Lease’s expiration or earlier
termination) of reasonably necessary protective modifications to the Leased Property (such as concrete encasements); the deposit
of security in an amount reasonably determined by Landlord to be held by Landlord under this Lease for assurance thereof; or the
purchase, at Tenant’s expense, of additional insurance covering such risks.

 

If Tenant
knows, or has reasonable cause to believe, that a Hazardous Material, or a condition arising or resulting from same, has come to
be located in, on, under or about the Leased Property, other than as previously consented to by Landlord, Tenant shall immediately
give written notice of such fact to Landlord. Tenant shall also immediately give Landlord a true copy of any statement, report,
notice, registration, application, permit, business plan, license, claim, action or proceedings given to, or removed from, any
governmental authority or private party, or persons entering or occupying the Leased Property, concerning the presence, spill,
release, discharge of, or exposure to, any Hazardous Material or bio-hazardous medical waste or contamination in, on, or about
the Leased Property, including but not limited to all such documents as may be involved in any Reportable Use involving the Leased
Property.

 

Tenant
shall indemnify, protect, defend and hold Landlord, its agents, employees, mortgagees and ground lessors, if any, and the Leased
Property, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, reasonable costs, claims,
liens, expenses, penalties, permits and attorney’s and consultant’s fees arising out of or involving any Hazardous Materials, or
storage tank brought onto or generated at the Leased Property by or for Tenant or under Tenant’s control. Tenant’s obligations
under this subparagraph shall include, but not be limited to, the effects of any contamination or injury to person, property or
the environment created or suffered by Tenant, and the cost of reasonable investigation (including consultant’s and attorney’s
fees and testing), removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved, and shall
survive the expiration or earlier termination of this Lease. No termination, cancellation or release agreement entered into by
Landlord and Tenant shall release Tenant from its obligations under this Lease with respect to Hazardous Materials unless specifically
so agreed by Landlord in writing at the time of such agreement.

 

5.4         Management
of Facility. The Facility shall be self-managed by Tenant or its Affiliates. At its own cost and expense, Tenant shall
employ such clinical, clerical and administrative personnel as may be required for proper operation of the Facility ( “Tenant
Employees”) or shall enter into service contracts for such clinical, clerical and administrative personnel as may be
required for proper operation of the Facility ( “Service Contract Employees”). Tenant shall be solely responsible
for all employment or employment-related decisions with respect to Tenant Employees. Tenant Employees and Service Contract Employees
shall not for any purpose be, be deemed to be, or be considered to be employees of Landlord. Tenant shall be solely responsible
for the satisfaction of any and all obligations it assumes with respect to Tenant Employees, including without limitation, payment
of wages and salaries, withholding of federal, state and local taxes, employee benefits, wage and hour obligations (including
overtime), workers’ compensation, Social Security and unemployment insurance. Tenant shall comply with all federal, state and
local laws, rules and regulations respecting the

 

    	 	12	 

     

    

 

employment and the provision of equal employment opportunities
to Tenant Employees working in the Facility and those respecting occupational health and safety of hospital workers.

 

5.5         Landlord
to Grant Easements. Landlord will, from time to time, at the reasonable request of Tenant and at Tenant’s cost and expense,
but subject to the consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed (a) grant easements
and other rights in the nature of easements, (b) release existing easements or other rights in the nature of easements which are
for the benefit of the Leased Property, (c) dedicate or transfer unimproved portions of the Leased Property for road, highway
or other public purposes, (d) execute petitions to have the Leased Property annexed to any municipal corporation or utility district,
(e) execute amendments to any covenants and restrictions affecting the Leased Property and (f) execute and deliver to any person
any instrument appropriate to confirm or effect such grants, releases, dedications and transfers (to the extent of its interest
in the Leased Property). The parties acknowledge and agree that Landlord’s consent for any such easement, dedication, covenant,
restriction, annexation or release may be withheld by Landlord, if in Landlord’s reasonable opinion, such easement, dedication,
covenant, restriction, annexation or release would materially increase Landlord’s expenses or obligations or adversely impact
the value of the Leased Property.

 

ARTICLE 6.

LEGAL, INSURANCE AND FINANCIAL REQUIREMENTS

 

6.1         Compliance
with Legal and Insurance Requirements. Subject to Article 8 regarding capital additions and Article 10 relating to permitted
contests, Tenant, at its expense, will with reasonable promptness (a) comply with all material and Insurance Requirements, in
respect of the use, operation, maintenance, repair and restoration of the Leased Property, whether or not compliance therewith
shall require structural change in any of the Improvements or interfere with the use and enjoyment of the Leased Property, unless
resulting from defective work performed by Landlord, any agent or employee of Landlord or contractor employed by Landlord, to
the extent Landlord is responsible hereunder for repairing such defective work, and (b) directly or indirectly with the cooperation
of Landlord, but at Tenant’s sole cost and expense, procure, maintain and comply with all material licenses, certificates of need
and other authorizations required for (i) the use and operation of the Leased Property for its Permitted Use, and for (ii) the
proper erection, installation, operation and maintenance of the Improvements or any part thereof, including any Capital Additions.

 

6.2         Legal
Requirement Covenants. Tenant covenants and agrees that the Leased Property shall not be used for any unlawful purpose.
Tenant shall, directly or indirectly with the cooperation of Landlord, but at Tenant’s sole cost and expense, acquire and maintain
all material licenses, certificates, permits and other authorizations and approvals needed to operate the Leased Property in its
customary manner for the Permitted Use and any other use conducted on the Leased Property as may be permitted by Landlord from
time to time hereunder. Tenant further covenants and agrees that Tenant’s use of the Leased Property and Tenant’s maintenance,
alteration, and operation of the same, and all parts thereof, shall at all times conform to all applicable Legal Requirements.

 

    	 	13	 

     

    

 

ARTICLE 7.

REPAIRS; RESTRICTIONS AND ANNUAL
INSPECTIONS

 

7.1          Maintenance
and Repair. 

 

(a)         Tenant,
at its expense, will keep the Leased Property and all private roadways, sidewalks and curbs appurtenant thereto in good order
and repair (whether or not the need for such repairs occurs as a result of Tenant’s use, any prior use, the elements, the age
of the Leased Property or any portion thereof), and, except as otherwise provided below and in Articles 12 and 13, with reasonable
promptness, will make all necessary and appropriate repairs thereto of every kind and nature, whether interior or exterior, structural
or non-structural, capital or non-capital, ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition
first arising after the Commencement Date of this Lease (concealed or otherwise). All repairs shall to the extent reasonably
achievable, be at least equivalent in quality to the original work performed by Landlord and shall be accomplished by Tenant or
a party selected by Tenant. Tenant will not take or omit to take any action the taking or omission of which might materially impair
the value or usefulness of the Leased Property or any part thereof for the Permitted Use.

 

(b)
         Except for the use of any insurance proceeds as set forth in Sections
12.1 and 12.2 hereof, Landlord shall not under any circumstances be required to build or rebuild the Improvements on the Leased
Property, or to make any repairs, replacements, alterations, restorations, or renewals of any nature or description to the Leased
Property, whether ordinary or extraordinary, structural or non-structural, capital or non-capital foreseen or unforeseen, or to
make any expenditure whatsoever with respect thereto in connection with this Lease, or to maintain the Leased Property in any
way.

 

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

 

(d)
        Unless Landlord shall convey any of the Leased Property to Tenant pursuant
to the provisions of this Lease, Tenant will, upon the expiration or prior termination of this Lease, vacate and surrender the
Leased Property to Landlord in the condition in which the Leased Property was originally received from Landlord, except for: (i)
ordinary wear and tear (subject to the obligation of Tenant to maintain the Leased Property in good order and repair during the
entire Term); (ii) damage caused by the negligence or willful acts of Landlord; (iii) damage or destruction described in Article
12; (iv) damage resulting from a Taking described in Article 13 which Tenant is not required by the terms of this Lease to repair
or restore; and (v) except as repaired, rebuilt, restored, altered or added to as permitted or required by the provisions of
this Lease.

 

    	 	14	 

     

    

 

(e)          Notwithstanding
anything in this Lease to the contrary, Landlord shall cause the Leased Property to comply with the Americans with Disabilities
Act of 1990 (“ADA”) and Texas Accessibility Standards (“TAS”), and all rules, regulations
and guidelines promulgated thereunder, as the same apply to public areas of the Leased Property as of the Commencement Date, but
not thereafter. Tenant shall be responsible for undertaking all work required to comply with the retrofit requirements of the
ADA and TAS, and all rules, regulations, and guidelines promulgated thereunder, as the same may be amended from time to time,
necessitated by any installations, additions, or alterations made in or to the Leased Property after the Commencement Date or
by Tenant’s specific use of the Leased Property.

 

7.2         At
any time during the Term, if the roof, foundation, structural elements, exterior walls, HVAC system, electrical system, or plumbing
system (or a material portion thereof) requires replacement or repairs, and if such replacement or repair must be capitalized
in accordance with generally accepted accounting principles, consistently applied (“GAAP”), Landlord shall
replace or repair such item, unless such replacement is necessary due to damage caused by or improper maintenance by Tenant or
its employees, agents, patients, visitors, contractors or subcontractors. The costs of such repair or replacement shall be amortized
over the useful life of such repair or replacement in accordance with GAAP, and as additional Minimum Rent hereunder, Tenant shall
pay to Landlord, on a monthly basis, the “Amortization Amount” for the months of the amortization period that fall
within the Term (including any Extension Term). The “Amortization Amount” shall mean the monthly amortization
or depreciation of the cost of such replacement item based on the applicable amortization (depreciation) period, using straight-line
amortization (depreciation), with interest at the Prime Rate. For example: if (i) Landlord replaces a material portion of the
HVAC system at a cost of $100,000 at the beginning of the 15th year of the Initial Term, (ii) the proper amortization period for
such repair in accordance with GAAP is 90 months, and (iii) the then applicable Prime Rate is six percent (6%), then during such
15th year, Tenant shall pay each month to Landlord the amount of $1,177.78 ($100,000/90 x 1.06) as additional Minimum Rent. If
Tenant renews the Lease for the first Renewal Term and second Renewal Term, Tenant shall continue to pay such additional Minimum
Rent during the first Renewal Term and during the first 18 months of the second Renewal Term. Notwithstanding the foregoing, if
damage to the foregoing items is caused by Tenant or its employees, agents, patients, visitors, contractors or subcontractors,
then Tenant will be required to reimburse Landlord for the costs and expenses incurred by Landlord in making such repairs or replacements,
which must be paid to Landlord within fifteen (15) days after Tenant receives a written request from Landlord for same, accompanied
by documentation reasonably evidencing such costs and expenses. Additionally, if Tenant does not employ a licensed HVAC technician,
then Tenant, at its sole cost and expense must maintain in force a maintenance contract for the HVAC system, and Landlord shall
have no obligation hereunder for repairs or replacements of the HVAC system if Tenant does not perform its obligations under this
sentence.

 

7.3        Encroachments;
Restrictions. If any of the Improvements shall, at
any time, encroach upon any property, street or right-of-way adjacent to the Leased Property, or shall violate the agreements
or conditions contained in any applicable Legal Requirement, or the Permitted Exceptions, or shall impair the rights of others
under any easement or right-of-way to which the Leased Property is subject, then promptly upon the request of Landlord, Tenant
shall, at its expense, subject to its right to contest the existence of any encroachment, violation or 

 

    	 	15	 

     

    

 

impairment, (a) obtain
valid and effective waivers or settlements of all claims, liabilities and damages resulting from each such encroachment, violation
or impairment, whether the same shall affect Landlord or Tenant, or (b) make such changes in the Improvements, and take such other
actions, as Landlord in the good faith exercise of its judgment deems reasonably practicable, to remove such encroachment, or to
end such violation or impairment, including, if necessary, the alteration of any of the Improvements, and in any event take all
such actions as may be necessary in order to be able to continue the operation of the Facility for the Permitted Use substantially
in the manner and to the extent the Facility was operated prior to the assertion of such violation or encroachment. However, Tenant
shall have no such liability or obligations if such encroachment, violation, or impairment was present at the Commencement Date
of the Lease. Any such alteration shall be made in conformity with the applicable requirements of Article 8. Tenant’s obligations
under this Section 7.2 shall be in addition to and shall in no way discharge or diminish any obligation of any insurer under any
policy of title or other insurance and Tenant shall be entitled to a credit for any sums recovered by Landlord under any such policy
of title or other insurance.

 

ARTICLE 8.

CAPITAL ADDITIONS

 

8.1         Construction
of Capital Additions to the Leased Property. Except as set forth in subsection (a) below, Tenant may not make any alterations
or construct or install any Capital Additions on the Leased Property without the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed. Prior to commencing construction of any alteration or Capital Addition,
Tenant shall submit to Landlord in writing a proposal setting forth in reasonable detail any proposed Capital Addition (unless
expressly permitted by subsection (a) below), together with plans and specifications, permits, licenses, contracts and other information
concerning the proposed Capital Addition, and the identity of the general contractor (the “Request”). Without
limiting the generality of the foregoing, such Request shall indicate the approximate projected cost of constructing and time
to complete construction of such Capital Addition and the use or uses to which it will be put. Within fifteen (15) days after
receipt of Tenant’s Request, Landlord shall request any additional. information that it may require in order to evaluate Tenant’s
Capital Addition proposal, and Landlord shall approve or disapprove of the proposed Capital Addition no later than thirty (30)
days following any request from Tenant. Landlord’s failure to respond within said thirty (30) day period shall constitute its
approval. Any notice of disapproval from Landlord shall include a written summary of Landlord’s stated reasons for disapproval.
With respect to any expansion of the Facility (other than the Expansion, as defined in Section 36 below, or alterations to the
Premises in conjunction with the construction of the Expansion) which is approved by Landlord and which affects the structural
integrity of the Facility or the mechanical, electrical or plumbing systems of the Facility, if Landlord performs construction
management services with respect to such expansion, Tenant shall pay Landlord a construction management fee equal to five percent
(5%) of the cost of such expansion, one-half of which fee shall be paid prior to the commencement of construction of such expansion
and the remaining one-half of the fee shall be paid within ten (10) days after substantial completion of such expansion. With
respect to any Capital Addition not covered by the previous sentence, which Capital Addition affects the structural integrity
of the Facility or the mechanical, electrical or plumbing systems of the Facility, Tenant shall reimburse Landlord for its reasonable
out of pocket expenses in connection with such Capital Addition,

 

    	 	16	 

     

    

 

such as engineering and/or architectural fees, and the
reasonable travel and lodging costs incurred by Landlord and its engineer and/or architect, which amount shall be paid to Landlord
within ten (10) days after substantial completion of such Capital Addition. None of the foregoing fees shall be charged in conjunction
with the Expansion (as defined in Section 36 below) or any alterations to the Premises in conjunction with the construction of
the Expansion. Nothing herein shall authorize Tenant to construct the Expansion.

 

(a)
         Notwithstanding any other provision of this Article 8 to the contrary,
in no event shall Tenant be required to obtain the consent of Landlord to construct (or notify Landlord of the construction of)
a Capital Addition that is budgeted to cost less than $200,000.00, unless such Capital Addition will affect the structural integrity
of the Facility or the mechanical, electrical or plumbing systems of the Leased Property.

 

(b)
         No Capital Addition shall be made which would tie in or connect any
Improvements on the Leased Property with any other improvements on property adjacent to the Leased Property (and not part of the
Land covered by this Lease) including tie-ins of buildings or other structures or utilities, unless Tenant shall have obtained
the prior written approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. All proposed
Capital Additions shall be architecturally integrated and generally consistent with the Improvements.

 

8.2        Title
to Additions. Title to all additions, whether a Capital
Addition or non-Capital Addition, modifications and improvements shall, without payment by Landlord at any time, be included
under the terms of this Lease and, upon expiration or earlier termination of this Lease, shall pass to and become the property
of Landlord; provided, however, that all personal property and equipment of Tenant, regardless of whether affixed to the Leased
Property, shall remain Tenant’s property. 

 

ARTICLE 9.

LIENS

 

Subject
to the provisions of Article 10 relating to permitted contests, Tenant will not directly or indirectly create or suffer to exist
and will promptly discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon the Leased
Property or any attachment, levy, claim or encumbrance in respect of the Rent, not including, however, (a) this Lease (including
any amendments thereto), (b) the Permitted Exceptions set forth in Exhibit B attached hereto, (c) the Facility Mortgage,
(d) restrictions, liens and other encumbrances which are consented to in writing by Landlord, or any easements granted pursuant
to the provisions of Section 5.5 of this Lease, (e) liens for those taxes of Landlord which Tenant is not required to pay hereunder,
(f) liens for Impositions or for sums resulting from noncompliance with Legal Requirements so long as (1) the same are not yet
due and payable or are payable without the addition of any fine or penalty or (2) such liens are in the process of being contested
as permitted by Article 10, (g) liens of mechanics, laborers, materialmen, suppliers or vendors for sums either disputed or not
yet due, provided that any such liens are in the process of being contested as permitted by Article 10, (h) any Encumbrance placed
on the Leased Property by Landlord, and (i) liens on Tenant’s personal property or equipment that is personal property.

 

    	 	17	 

     

    

 

ARTICLE 10.

PERMITTED CONTESTS

 

Tenant may contest,
by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity or application, in whole
or in part, of any Imposition, lien, attachment, levy, encumbrance, charge or claim (collectively, “Charge”) not
otherwise permitted by Article 9, which is required to be paid or discharged by Tenant; provided that (a) Tenant shall give prompt
written notice to Landlord of such contest; (b) in the case of an unpaid Charge, the commencement and continuation of such proceedings,
or the posting of a bond or certificate of deposit as may be permitted by applicable law, must operate to suspend the right of
the governmental agency or third party to collect such Charge from Landlord and/or the Leased Property, and if a bond or certificate
of deposit is required by law, Tenant must post or provide such bond or certificate of deposit; (c) neither the Leased Property
nor any Rent therefrom nor any part thereof or interest therein would be in any immediate danger of being sold, forfeited, attached
or lost; (d) Landlord would not be in any immediate danger of civil or criminal liability for failure to comply therewith pending
the outcome of such proceedings; and (e) if such contest be finally resolved against Landlord or Tenant, Tenant shall, as Additional
Charges due hereunder, promptly pay the amount required to be paid, together with all interest and penalties accrued thereon, or
otherwise comply with the applicable Charge; provided further that nothing contained herein shall be construed to permit Tenant
to contest the payment of Rent, or any other sums payable by Tenant to Landlord hereunder.

 

Landlord
shall not be required to join in any proceedings unless the provisions of any law, rule or regulation at the time in effect may
require that such proceedings be brought by or in the name of Landlord, in which event Landlord shall join in such proceedings
or permit the same to be brought in Landlord’s name upon compliance with such conditions as Landlord may reasonably require. Landlord
shall not ultimately be subject to any liability for the payment of any fees, including attorney’s fees, costs and expenses in
connection with such proceedings. Tenant agrees to pay all such fees (including reasonable attorney’s fees), reasonable, out-of-pocket
costs and expenses or, on demand, to make reimbursement to Landlord for such payment.

 

Tenant
shall defend, indemnify and save Landlord harmless against any liability, cost or expense of any kind that may be imposed upon
Landlord in connection with any such contest and any loss resulting therefrom, except as may result from Landlord’s own actions
or omissions.

 

ARTICLE 11.

INSURANCE

 

11.1      General
Insurance Requirements. During the Term of this Lease, Tenant shall at all times keep the Leased Property, and all property
located in or on the Leased Property insured, with the kinds and amounts of insurance as described below and written by companies
authorized to do insurance business in the state in which the Leased Property is located, having an A.M. Best Insurance Reports
rating of not less than “A,” and a financial size category of not less than “VIII.” The policies must name
Landlord as the primary insured, except that any liability policy shall name Landlord as an additional insured. In addition, the
policies shall name as an additional insured the holder ( “Facility Mortgagee”) of any mortgage, deed of trust
or

 

    	 	18	 

     

    

 

other security agreement securing any encumbrance
placed on the Leased by Landlord ( “Facility Mortgage”), if any, by way of a standard form of mortgagee’s loss
payable endorsement. Any loss adjustment in excess of $100,000.00 under a liability policy shall require the written consent of
Landlord and each affected Facility Mortgagee. Upon Landlord’s written request, a copy of the insurance policy (and endorsements)
or such other evidence of insurance reasonably acceptable to Landlord and its Facility Mortgagee(s) shall be supplied to Landlord
and such Facility Mortgagee(s). The policies on the Leased Property, including the Improvements, the Fixtures and the Personal
Property, shall insure against the following risks:

 

(a)
         Loss or damage by fire, vandalism and malicious mischief, extended coverage
perils commonly known as “Special Form” (formerly “All Risk”) and all physical loss perils, including sprinkler
leakage, in an amount not less than 100% of the then Full Replacement Cost thereof (as defined below in Section 11.2) with a replacement
cost endorsement sufficient to prevent Tenant from becoming a co-insurer together with an agreed value endorsement and business
interruption insurance (in an amount at least equal to twelve (12) months of Rent due under this Lease), and losses shall be payable
to Landlord or the Facility Mortgagee;

 

(b)
        Loss or damage by explosion of steam boilers, pressure vessels or similar
apparatus now or hereafter installed in the Facility, in such limits with respect to any one accident as may be reasonably requested
by Landlord from time to time, and losses shall be payable to Landlord or the Facility Mortgagee;

 

(c)
        Loss of rental under a rental value insurance policy covering risk of loss
during the first twelve (12) months of reconstruction necessitated by the occurrence of any of the hazards described in Sections
11.1(a) or 11.1(b), in an amount sufficient to prevent Tenant from becoming a co-insurer, and losses shall be payable to Landlord
or the Facility Mortgagee; provided that in the event that Tenant shall not be in default hereunder and Landlord shall receive
any proceeds from such rental insurance which, when added to rental amounts received by Landlord from Tenant with respect to the
applicable time period, exceed the amount of rental owed by Tenant hereunder, Landlord shall immediately pay such excess to Tenant;

 

(d)
        Loss or damage by hurricane, earthquake, or any natural disaster in the amount
of the Full Replacement Cost, after deductible, and losses shall be payable to Landlord or the Facility Mortgagee;

 

(e)
        Claims for personal injury or property damage under a policy of comprehensive
general public liability insurance including insurance against assumed or contractual liability including indemnities, under this
Lease, with amounts not less than $2,000,000.00 per occurrence in respect of bodily injury and death and $6,000,000.00 for property
damage and an umbrella policy in an amount of $2,000,000.00;

 

(f)
        Flood (only if the Leased Property is located in whole or in part within a
flood hazard area beginning with the letter “A” or “V”) and such other hazards and in such amounts as may
be customary for comparable properties in the area and if available from insurance companies authorized to do business in the
state in which the Leased Property is located, and losses shall be payable to Landlord or the Facility Mortgagee;

 

    	 	19	 

     

    

 

(g)           If
Tenant shall engage or cause to be engaged any contractor to perform any material work on the Leased Property (for purposes of
this particular provision material shall mean in excess of $200,000.00), including work related to the construction of any Capital
Addition by Tenant, Tenant shall require such contractor to carry and maintain insurance coverage comparable to the foregoing
requirements set forth in Section 11.1(e) above and builder’s risk insurance in amounts sufficient to cover the Full Replacement
Cost of the Leased Property (excluding the Land), at no expense to Landlord; provided that Tenant may allow any such contractor
to carry or maintain alternative coverage in reasonable amounts upon Landlord’s prior written consent, which shall not be unreasonably
withheld. In the event of the construction of any Capital Addition to the Leased Property, Tenant and/or its general contractor(s)
shall obtain and maintain during the course of such Capital Addition construction, builder’s risk insurance in amounts sufficient
to cover the budgeted cost of the Capital Addition and Full Replacement Cost of the Leased Property (excluding the Land).

 

11.2       Replacement
Cost. The term “Full Replacement Cost” as
used herein shall mean the actual replacement cost of the Facility from time to time, without deduction for physical depreciation,
and including an increased cost of construction endorsement. In the event either Landlord or Tenant believes that the Full Replacement
Cost has increased or decreased at any time during the Term, either party shall have the right, although such right may not be
exercised by a single party more frequently than once in a single five (5) year period, and at the electing party’s expense
to have such Full Replacement Cost redetermined by the insurance company which is then providing the largest amount of casualty
insurance carried on the Leased Property, hereinafter referred to as the “impartial appraiser.” The party desiring
to have the Full Replacement Cost so re-determined shall forthwith, on receipt of such determination by the impartial appraiser,
give written notice thereof to the other party hereto. The determination of such impartial appraiser shall be final and binding
on the parties hereto, and Tenant shall forthwith increase, or may decrease, the amount of the insurance carried pursuant to this
Article to the amount so determined by the impartial appraiser. 

 

11.3      Additional
Insurance. In addition to the insurance described above, Tenant shall maintain such
additional insurance as may be reasonably required from time to time by Landlord or any Facility Mortgagee which is consistent
with insurance coverage for similar buildings in the city, county and state where the Leased Property is located, or required
pursuant to any applicable Legal Requirement and shall at all times maintain adequate worker’s compensation insurance coverage
for all persons employed by Tenant on the Leased Property, in accordance with all applicable Legal Requirements. 

 

11.4      Waiver
of Subrogation. All insurance policies carried by either party covering the Leased
Property, the Fixtures, the Facility and/or the Personal Property, including contents, fire and casualty insurance, shall expressly
waive any right of subrogation on the part of the insurer against the other party. The parties hereto agree that their policies
will include such a waiver clause or endorsement so long as the same is obtainable without extra cost, and in the event of such
an extra charge the other party, at its election, may request and pay the same, but shall not be obligated to do so. 

 

11.5     Form
of Insurance. Tenant shall pay all premiums for insurance required hereby and deliver
such policies or certificates thereof to Landlord prior to their effective date (and, with 

 

    	 	20	 

     

    

 

 

 

respect to any renewal policy, at least
thirty (30) days prior to the expiration of the existing policy). Each insurer mentioned in this Section shall agree, by endorsement
on the policy or policies issued by it, or by independent instrument furnished to Landlord, to give to Landlord prior written
notice before the policy or policies in question shall be altered, allowed to expire or canceled.

 

11.6
     Change in Limits. In the event that Landlord shall at any time reasonably
and in good faith believe the limits of the personal injury, property damage or general public liability insurance then carried
to be insufficient, the parties shall endeavor to agree on the proper and reasonable limits for such insurance to be carried and
such insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the provisions of this
Section. If the parties shall be unable to agree thereon, the proper and reasonable limits for such insurance shall be determined
by an impartial third party selected by the parties the costs of which shall be divided equally between the parties. Such redeterminations,
whether made by the parties or by arbitration, shall be made no more frequently than every five (5) years. Nothing herein shall
permit the amount of insurance to be reduced below the amount or amounts reasonably required by any Facility Mortgagee.

 

11.7
     Blanket Policy. Notwithstanding anything to the contrary contained in this Section, Tenant’s
obligations to carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies
of insurance carried and maintained by Tenant or any member of Tenant; provided that the coverage afforded Landlord will not be
reduced or diminished or otherwise be different from that which would exist under separate policies meeting all other requirements
of this Lease; provided further that the requirements of this Article 11 are otherwise satisfied.

 

11.8      No Separate Insurance. Without the prior written consent of Landlord, Tenant
shall not, on Tenant’s own initiative or pursuant to the request or requirement of any third party, take out separate insurance
concurrent in form or contributing in the event of loss with that required in this Article 11 to be furnished by, or which may
reasonably be required by a Facility Mortgagee to be furnished by, Tenant, or increase the amounts of any then-existing insurance
required under this Article 11 by securing an additional policy or additional policies, unless all parties having an insurable
interest in the subject matter of the insurance, including in all cases Landlord and all Facility Mortgagees, are included therein
as additional insureds and the loss is payable under said insurance in the same manner as losses are required to be payable under
this Lease. Tenant shall immediately notify Landlord of the taking out of any such separate insurance or of the increasing of any
of the amounts of the then-existing insurance required under this Article 11 by securing an additional policy or additional policies.

 

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ARTICLE 12.

FIRE AND CASUALTY

 

12.1       Repair
Estimate. If the Facility is damaged by fire or other casualty (a “Casualty”), Landlord shall, within
sixty (60) days after Landlord learns of such Casualty, deliver to Tenant a good faith written estimate in writing (the “Damage
Notice”) of the time needed to repair the damage caused by such Casualty and an estimated date by which the repairs will
be completed.

 

12.2       Landlord’s
and Tenant’s Right to Terminate. If (a) a Casualty damages a material portion of the Facility, and Landlord makes a good
faith determination that restoring the Facility would be uneconomical, or (b) Landlord is required to pay any insurance proceeds
arising out of the Casualty to a holder of a Facility Mortgage and such holder elects to apply such insurance proceeds to the Facility
Mortgage, then Landlord may terminate this Lease by giving written notice of its election to terminate within thirty (30) days
after the Damage Notice has been delivered to Tenant, and all Rent due from Tenant to Landlord hereunder shall be abated as of
the date of the Casualty. If the Landlord’s Damage Notice states that the estimated date for completion of repairs is more than
two hundred seventy (270) days following the date of the Casualty, then Tenant may elect to terminate this Lease by giving written
notice of its election to terminate within thirty (30) days after the Damage Notice has been delivered to Tenant, and all Rent
hereunder shall be abated as of the date of the Casualty. If neither party terminates the Lease as set forth herein, Landlord shall,
at Landlord’s sole expense, repair the Leased Property to substantially the same condition as existed immediately before the Casualty.
During the period in which repairs and restoration are being made to the Leased Property, Rental for the portion of the Leased
Property rendered untenantable by the damage shall be abated on a reasonable basis from the date of the Casualty until the completion
of the repair.

 

ARTICLE 13.

CONDEMNATION

 

13.1      Parties’
Rights and Obligations. If during the Term there is any Taking of all or any part of the Leased Property or any interest
in this Lease by Condemnation, the rights and obligations of the parties shall be determined by this Article 13.

 

13.2      Total
Taking. If there is a Taking of all of the Leased Property by Condemnation, this Lease shall terminate effective as of
the Date of Taking, and the Minimum Rent and all Additional Charges paid or payable hereunder shall be apportioned and paid to
the Date of Taking.

 

13.3      Partial
Taking. If there is a Taking of any material part of the Leased Property, but less than all of the Leased Property, or
if Landlord is required to pay any of the proceeds received for a Taking to a holder of a Facility Mortgage, then this Lease, at
the option of Landlord, exercised by written notice to Tenant within thirty (30) days after such Taking, shall terminate, and Rent
shall be apportioned as of the Date of Taking. If there is a Taking of any material part of the Leased Property, but less than
all of the Leased Property, and the Taking materially and adversely affects Tenant’s use and enjoyment of the Leased Property,
then this

 

    	 	22	 

     

    

 

Lease, at the option of Tenant, exercised
by written notice to Landlord within thirty (30) days after such Taking, shall terminate, and Rent shall be apportioned as of the
Date of Taking. If neither party terminates this Lease, then (i) Rent shall be abated on a reasonable basis as to that portion
of the Leased Property rendered untenantable by the Taking, and (ii) Landlord shall, subject to the terms of the Facility Mortgage,
take such proceeds of any Award as shall be necessary and restore the Leased Property, at its own expense, to the extent possible,
to substantially the same condition as existed immediately before the partial Taking.

 

13.4      Award.
If any Taking occurs, then Landlord shall receive the entire award or other compensation for the Land, the Improvements and other
improvements taken, except that Tenant shall be entitled to separately pursue a claim against the condemnor for the value of Tenant’s
personal property, equipment and trade fixtures which Tenant is entitled to remove under this Lease, moving costs, and loss of
business. 

 

13.5
     Temporary Taking. The Taking of the Leased Property, or any part thereof,
by military or other public authority shall constitute a Taking by Condemnation only when the use and occupancy by the Taking
authority has continued for longer than twelve (12) months. During any such twelve (12) month period all the provisions of this
Lease shall remain in fill force and effect, and the Rent shall not be abated or reduced during such period of Taking; provided
that Tenant will receive any compensation from the Taking authority as a result of such temporary Taking.

 

ARTICLE 14.

DEFAULT

 

14.1
     Events of Default. The occurrence of any one or more of the following events shall constitute
events of default (individually, an “Event of Default” and, collectively, “Events of Default”)
hereunder:

 

(a)
        if Tenant shall fail to make a payment of the Rent or any other sum required to be paid
by Tenant hereunder when the same becomes due and payable and such failure continues for a period of ten (10) days after written
notice from Landlord to Tenant; or

 

(b)         if
Tenant or any other person uses or operates the Leased Property for any use other than the Permitted Use; or

 

(e)         if
Tenant shall fail to observe or perform any other term, covenant or condition of this Lease and such failure is not cured by Tenant
within a period of sixty (60) days after receipt by Tenant of notice thereof from Landlord, unless such failure cannot with due
diligence be cured within a period of sixty (60) days, in which case such failure shall not be deemed to continue if Tenant proceeds
promptly and with due diligence to cure the failure and diligently completes the curing thereof, provided, however, that the time
within which Tenant shall be obligated to cure any such failure shall also be subject to extension of time due to the occurrence
of any Unavoidable Delay; or

 

(d)         if
Tenant, any of its subsidiaries or members, or Guarantor shall:

 

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

 

    	 	23	 

     

    

 

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

 

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

 

(iv)        consent
to the appointment of a custodian (including without limitation a trustee or receiver) of itself or of the whole or any substantial
part of its property, or

 

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

 

(e)          if
final judgment for the payment of money shall be rendered against Tenant, any of its subsidiaries or members, or Guarantor, and
Tenant or any such subsidiary or member, or Guarantor, as the case may be, shall not discharge or cause the same to be discharged
within ninety (90) days from the entry thereof, or shall not appeal therefrom or from the order, decree or process upon which or
pursuant to which said judgment was granted, based or entered and secure a stay of execution pending such appeal, or

 

(f)           if
RehabCare shall default on its obligations under the Lease Guaranty attached hereto as Exhibit F, or

 

(g)
         if any of the representations or warranties made by Tenant, any of its subsidiaries or
members and Tenant or any such subsidiary or member, as the case may be, in this Lease prove to have been untrue in any material
respect when made, and to the extent such untrue representation or warranty is not cured within thirty (30) days after receipt
by Tenant of written notice thereof from Landlord, or

 

(h)
        if the Financial Statements of Tenant, any of its subsidiaries or members or Guarantor,
or any subsidiary or member of Guarantor, as the case may be, provided under this Lease to Landlord in connection with the execution
of this Lease prove to have been untrue in any material respect when made, and reliance on such Financial Statements causes an
adverse impact to Landlord.

 

14.2
     Remedies. If an Event of Default shall have occurred, Landlord shall have
the right at its election, then or at any time thereafter, to pursue any one or more of the following remedies, in addition to
any remedies which may be permitted by law or by other provisions of this Lease, without further notice or demand, except as hereinafter
provided:

 

(a)         Without
any notice or demand whatsoever, Landlord may take any one or more actions permissible at law to ensure performance by Tenant of
Tenant’s covenants and obligations under this Lease. In this regard, it is agreed that if Tenant abandons or vacates the Leased
Property, Landlord may enter upon and take possession of such Leased Property in order to protect it from deterioration and continue
to demand from Tenant the monthly Minimum Rent and the Additional Charges provided in this Lease. It is further agreed in this
regard that in the event of any Event of Default described in this Article 14, Landlord shall have the right to enter upon the
Leased Property and do whatever Tenant’ is obligated to do under the terms of this Lease; and Tenant agrees to reimburse Landlord
on demand for any reasonable expenses which

 

    	 	24	 

     

    

 

Landlord may incur
in thus effecting compliance with Tenant’s obligations under this Lease, and further agrees that Landlord shall not be liable for
any damages resulting to Tenant from such action provided that Landlord is not negligent in the performance of Tenant’s lease obligations.

 

(b)          Landlord
may by written notice to Tenant terminate Tenant’s possession of the Leased Property without terminating the Lease, in
which event Tenant shall immediately surrender the Leased Property to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which Landlord may have for possession or arrearage in rent (including any interest
which may have accrued pursuant to Section 2.3 of this Lease or otherwise), enter upon and take possession of the Leased
Property and expel or remove Tenant and any other person who may be occupying the Leased Property or any part thereof. If
Landlord elects to proceed under this Section 14.2(b), Landlord may remove all of Tenant’s property from the
Leased Property and store the same in a public warehouse or elsewhere at the cost of, and for the account of, Tenant, without
becoming liable for any loss or damage which may be occasioned thereby. Landlord shall use good faith,
commercially reasonable efforts to relet and thereby mitigate its damages but shall have no absolute obligation to relet. If
Landlord does elect to relet the Leased Property, such action by Landlord shall not be deemed as an acceptance of
Tenant’s surrender of the Leased Property unless Landlord expressly notifies Tenant of such acceptance in writing,
Tenant hereby acknowledging that Landlord shall otherwise be reletting as Tenant’s agent. Until the Leased Property is
relet Tenant shall pay to Landlord on or before the first day of each calendar month the monthly Minimum Rent and other
Additional Charges provided in this Lease. After the Leased Property has been relet by Landlord, Tenant shall pay to Landlord
on the tenth (10th  day of each calendar month the difference between the monthly Minimum Rent and Additional
Charges provided in this Lease for the preceding calendar month and that actually collected by Landlord for such month;
provided that such collections are less. than the Minimum Rental and Additional Charges due under this Lease. If it is
necessary for Landlord to bring suit in order to collect any deficiency, Landlord shall have a right to allow such
deficiencies to accumulate and to bring an action on several or all of the accrued deficiencies at one time. Any such suit
shall not prejudice in any way the right of Landlord to bring a similar action for any subsequent deficiency or deficiencies.
Any amount collected by Landlord from subsequent tenants for any calendar month in excess of the monthly Minimum Rent and
Additional Charges provided in this Lease shall be credited to Tenant in reduction of Tenant’s liability for
any calendar month for which the amount collected by Landlord will be less than the monthly Minimum Rent and Additional
Charges provided in this Lease; but Tenant shall have no right to such excess other than the above described credit; or

 

(c)
        When Landlord desires, Landlord may demand a final settlement by giving Tenant
written notice thereof, in which event, Tenant shall pay to Landlord the sum of (1) all Rent accrued hereunder through the date
of termination, (2) all amounts due under Section 14.3, and (3) an amount equal to (A) the total Rent that Tenant would have been
required to pay for the remainder of the Term discounted to present value at a per annum rate equal to the “Prime
Rate” as published on the date this Lease is terminated by The Wall Street Journal, Southwest Edition, in its listing
of “Money Rates”, minus (B) the then present fair value of the Leased Property for the remainder of the Term discounted
to present value at the Prime Rate.

 

(d)         Additionally,
without notice but in accordance with all applicable laws and regulations, Landlord may alter locks or other security devices at
the Leased Property to deprive

 

    	 	25	 

     

    

 

 

Tenant of access thereto, and Landlord
shall not be required to provide a new key or right of access to Tenant until such Event of Default is cured; provided, however,
Landlord shall allow Tenant access to the Leased Property so as to gain access to patient records or to avoid a violation by the
Leased Property, Tenant, or Landlord of any applicable federal or state law regarding patient’s rights, confidentiality of patient
records, or any similar health, access, or medical law.

 

The rights
and remedies of Landlord hereunder are cumulative, and pursuit of any of the above remedies shall not preclude pursuit of any other
remedies prescribed in other sections of this Lease and any other remedies provided by law or equity. Forbearance by Landlord to
enforce one or more of the remedies herein provided upon an Event of Default shall not be deemed or construed to constitute a waiver
of such Event of Default.

 

14.3
      Additional Expenses. Upon any Event of Default, Tenant shall pay to Landlord
all reasonable costs incurred by Landlord (including court costs and reasonable attorneys’ fees and reasonable, out-of-pocket expenses)
in (1) obtaining possession of the Leased Property, (2) removing and storing Tenant’s or any other occupant’s property, (3) repairing,
restoring, altering, remodeling, or otherwise putting the Leased Property into condition acceptable to a new tenant whose business
is a Permitted Use, (4) if Tenant is dispossessed of the Leased Property and this Lease is not terminated, reletting all or any
part of the Leased Property (including advertising costs, brokerage commissions, cost of tenant finish work, and other reasonable
costs incidental to such reletting), (5) performing Tenant’s obligations which Tenant failed to perform, (6) enforcing, or advising
Landlord of its rights, remedies, and recourses arising out of the Event of Default, (7) any increase in insurance premiums caused
by the vacancy of the Leased Property, (8) all fees and expenses incurred by Landlord as a direct or indirect result of any appropriate
action by a Facility Mortgagee, and (9) a reasonable allowance for Landlord’s administrative efforts, salaries and overhead attributable
directly or indirectly to Tenant’s default and Landlord’s pursuing the rights and remedies provided herein and under applicable
law.

 

14.4      No Waiver. Landlord’s acceptance of Rent following an Event of Default shall
not waive Landlord’s rights regarding such Event of Default. No waiver by Landlord of any violation or breach of any of the terms
contained herein shall waive Landlord’s rights regarding any future violation of such term or violation of any other term. Landlord’s
acceptance of any partial payment of Rent shall not waive Landlord’s rights with regard to the remaining portion of the Rent that
is due, regardless of any endorsement or other statement on any instrument delivered in payment of Rent or any writing delivered
in connection therewith; accordingly, Landlord’s acceptance of a partial payment of Rent shall not constitute an accord and satisfaction
of the full amount of the Rent that is due.

 

14.5
    Waiver. If this Lease is terminated pursuant to law or the provisions of Section
14.1, Tenant waives, to the extent permitted by applicable law, (a) any right of redemption, reentry or repossession and (b) the
benefit of any laws now or hereafter in force exempting property from liability for rent or for debt.

 

14.6
    Application of Funds . All payments otherwise payable to Tenant which are
received by Landlord under any of the provisions of this Lease during the existence or continuance of any Event of Default shall
be applied to Tenant’s obligations in the order which

 

    	 	26	 

     

    

 

 

Landlord may reasonably determine or as may be prescribed by
the laws of the state in which the Facility is located.

 

ARTICLE 15.

PURCHASE OF THE LEASED PROPERTY

 

Intentionally Deleted.

 

ARTICLE 16.

HOLDING OVER

 

If Tenant
shall for any reason remain in possession of the Leased Property after the expiration of the Term or any earlier termination of
the Term hereof, such possession shall be construed to be a monthly tenancy during which time Tenant shall pay as rental each month,
for the first three (3) months of such month to month tenancy, (a) monthly Minimum Rent as set forth in the immediately preceding
complete rent year, increased by one hundred twenty five percent (125%) plus (b) all Additional Charges accruing during such month;
and plus (c) all other sums, if any, payable pursuant to the provisions of this Lease with respect to the Leased Property. Following
the initial three (3) months of such month to month tenancy following expiration or early termination of the Term, Tenant shall
pay as rental each month (a) one hundred fifty percent (150%) of the aggregate of one-twelfth (1/12th) of the aggregate Minimum
Rent payable with respect to the immediately preceding complete Lease Year; plus (b) all Additional Charges accruing during such
month; and plus (c) all other sums, if any, payable pursuant to the provisions of this Lease with respect to the Leased Property.
During such period of tenancy, Tenant and Landlord shall be obligated to perform and observe all of the terms, covenants and conditions
of this Lease and to continue its occupancy and use of the Leased Property. Nothing contained herein shall constitute the consent,
express or implied, of Landlord to the holding over of Tenant after the expiration or earlier termination of this Lease.

 

ARTICLE 17.

ABANDONMENT

 

Intentionally Deleted.

ARTICLE 18.

RISK OF LOSS

 

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

 

    	 	27	 

     

    

  

ARTICLE 19.

INDEMNIFICATION

 

19.1       Tenant’s
Indemnity. Notwithstanding the existence of any insurance provided for in Article 11, and without regard to the policy
limits of any such insurance, Tenant will protect, indemnify, save harmless and defend Landlord from and against all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorneys’ fees and expenses),
to the extent permitted by law, imposed upon or incurred by or asserted against Landlord by reason of: (a) any accident, injury
to or death of persons or loss to property occurring on or about the Leased Property, including any claims of malpractice, (b)
any use, misuse, no use, condition, maintenance or repair by Tenant of the Leased Property, (c) any Impositions which are the obligations
of Tenant to pay pursuant to the applicable provisions of this Lease, (d) any failure on the part of Tenant to perform or comply
with any of the terms of this Lease, (e) the non-performance of any of the terms and provisions of any and all existing and future
subleases of the Leased Property to be performed by Tenant as landlord thereunder and (f) the violation of any Hazardous Materials
Law occurring during the Lease Term, but excluding any period of time during which Landlord has re-entered and repossessed the
Leased Property after Tenant’s abandonment thereof or otherwise caused by Landlord. Any amounts which become payable by Tenant
under this Section 19.1 shall be paid within thirty (30) days after liability therefore on the part of Landlord is finally determined
by litigation or otherwise (including the expiration of any time for appeals) and, if not timely paid, shall bear interest (to
the extent permitted by law) at the Overdue Rate from the date of such determination to the date of payment. Tenant, at its expense,
shall contest, resist and defend any such claim, action or proceeding asserted or instituted against Landlord or may compromise
or otherwise dispose of the same as Tenant sees fit. Landlord shall cooperate with Tenant in a reasonable manner to permit Tenant
to satisfy Tenant’s obligations hereunder, including the execution of any instruments or documents reasonably requested by Tenant.
Notwithstanding the foregoing, nothing herein shall be construed as indemnifying Landlord or its agents for their own negligent
acts or omissions or willful misconduct. Tenant’s liability for a breach of the provisions of this Section 19.1 shall survive any
termination of this Lease.

 

19.2      Landlord’s
Indemnity. Landlord will protect, indemnify, save harmless and defend Tenant and the members of Tenant from and against
all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorneys’
fees and expenses), to the extent permitted by law, imposed upon or incurred by or asserted against Tenant by reason of: (a) any
accident, injury to or death of persons or loss to property occurring on or about the Leased Property during the construction of
the Facility; (b) any items excluded from the definition of “Impositions” pursuant to Article 34 hereof, (c) any failure
on the part of Landlord to perform or comply with any of the terms of this Lease; and (d) the violation of any Hazardous Materials
Law during any period of time during which Landlord has re-entered and repossessed the Leased Property after Tenant’s abandonment
thereof or otherwise caused by Landlord. Any amounts which become payable by Landlord under this Section 19.2 shall be paid within
thirty (30) days after liability therefore on the part of Tenant is finally determined by litigation or otherwise (including the
expiration of any time for appeals) and, if not timely paid, shall bear interest (to the extent permitted by law) at the Overdue
Rate from the date of such determination to the date of payment. Landlord, at its expense, shall contest, resist and defend any
such claim, action or proceeding asserted or instituted against Tenant or may compromise or

 

    	 	28	 

     

    

 

otherwise dispose of the same as Landlord
sees fit. Tenant shall cooperate with Landlord in a reasonable manner to permit Landlord to satisfy Landlord’s obligations hereunder,
including the execution of any instruments or documents reasonably requested by Landlord. Nothing herein shall be construed as
indemnifying Tenant or its agents for their own negligent acts or omissions or willful misconduct. Landlord’s liability for a breach
of the provisions of this Section 19.2 shall survive any termination of this Lease.

 

ARTICLE 20.

SUBLETTING AND ASSIGNMENT

 

20.1       Assignment
or Sublease. Except as expressly permitted under Sections 20.3 or 20.4 hereof, Tenant shall not do any of the
following without the prior written consent of Landlord: (i) assign, either directly or indirectly (including an assignment
of Tenant’s rights hereunder occurring by merger, conversion, whether occurring directly or indirectly, or by other
operation of law), sublease or delegate all or any portion of Tenant’s rights or obligations under or in respect to the
leasehold estate created under this Lease, and/or (ii) permit the use of all or any part of the Leased Property by any
persons other than Tenant, its agents, employees and invitees, or its Affiliates and their respective agents, employees and
invitees. In no event shall any assignee or subtenant use the Leased Property for any purpose other than that permitted in
Article 5.3 of this Lease without Landlord’s consent, and in no event may Leased Property be used for a Prohibited Use.
In the event Tenant desires to make an assignment or enter into a sublease, Tenant shall deliver prior written notice thereof
and thereafter Landlord shall provide Tenant with written information or any prohibited or limited uses of the Leased
Property to any assignee or sublessee. Tenant acknowledges that making any assignment or sublease without Landlord’s
prior written consent shall be void, except as set forth in Sections 20.3 or 20.4, and if Tenant makes any assignment or
sublease without such consent. Landlord shall have the right (but not the obligation) at anytime to declare an Event of
Default hereunder. Except as to a Permitted Assignment set forth in Sections 20.3 or 20.4 hereof, Landlord may require, as a
condition precedent to consenting to any assignment or sublease, that (a) the assignee establishes to Landlord’s
reasonable satisfaction such assignee’s financial ability to consistently perform the terms and obligations of this
Lease, (b) the assignee shall assume in writing and agree to keep and perform all of the terms of this Lease on the part of
Tenant to be kept and performed and shall be and become jointly and severally liable with Tenant for the performance thereof,
(c) an original counterpart of each such assignment and assumption or sublease, duly executed by Tenant and such assignee or
sublessee, as appropriate, shall be delivered promptly to Landlord, and (d) Tenant shall remain primarily liable, as
principal rather than as surety, for the prompt payment of the Rent and for the performance and observance of all of the
covenants and conditions to be performed by Tenant hereunder. In the event Tenant desires to make a assignment or sublease
that requires Landlord’s consent, Landlord’s consent shall not be unreasonably or arbitrarily withheld,
conditioned or delayed.

 

20.2      Non-Disturbance,
Subordination and Attornment. Tenant shall insert in each sublease permitted hereunder provisions to the effect that (a)
such sublease is subject and subordinate to all of the terms and provisions of this Lease and to the rights of Landlord hereunder,
(b) in the event this Lease shall terminate before the expiration of such sublease, the subtenant thereunder will, at Landlord’s
option, attorn to Landlord and waive any right the subtenant may have to terminate the sublease or to surrender possession thereunder
as a result of

 

    	 	29	 

     

    

 

the termination of this Lease and (c) in
the event the subtenant receives a written notice from Landlord or Landlord’s assignees, if any, stating that Tenant is in default
under this Lease, the subtenant shall thereafter be obligated to pay all rentals accruing under said sublease directly to the party
giving such notice, or as such party may direct. All rentals received from the subtenant by Landlord or Landlord’s assignees, if
any, as the case may be, shall be credited against amounts owing by Tenant under this Lease. Landlord hereby agrees, upon Tenant’s
request, to execute a nondisturbance agreement in favor of any subtenant under any sublease permitted under Section 20.1 above;
provided that any such subtenant has acknowledged all of the foregoing provisions and executed all documents required by this Section
20.2.

 

20.3       Permitted
Subleases; Permitted Assignment to a Permitted Transferee . In the event Landlord
consents to a sublease as requested by Tenant, (a) the subtenant must agree in writing to comply with the provisions of Section
20.2, (b) an original counterpart of each such sublease, duly executed by Tenant and such subtenant shall be delivered promptly
to Landlord and (c) Tenant shall remain primarily liable, as principal rather than as surety, for the prompt payment of the Rent
and for the performance and observance of all of the covenants and conditions to be performed by Tenant hereunder and further provided
that there shall be no release of the Tenant or Lease Guaranty without the express written of Landlord (permitted subtenant is
referred to herein as a “Permitted Transferee”). In addition, Tenant may
either directly or indirectly assign this Lease, whether occurring by actual assignment of interests, merger, conversion, or other
operation of law, Transfer of membership or partnership interests in Tenant or Transfer of any shares, membership interest, partnership
interest, or ownership interest in the legal entity owning the membership or partnership interests in Tenant, to a person or entity,
pursuant to those requirements set forth in Section 20.4 hereof, provided that there shall be no release of the Tenant or the Lease
Guaranty without the express written consent of Landlord. Any such assignee shall also be a “Permitted Transferee”
for purposes hereof. Tenant shall notify Landlord in writing in advance of any change in its
ownership structure, the Transfer of shares or ownership interest in the legal entity owning any partnership or membership interests
in Tenant or assignment of this Lease to a Permitted Transferee and shall provide to Landlord all reasonably requested documentation
relating to any such Transfer. 

 

20.4      Permitted
Assignment by Tenant or Initial Members to Third Parties. Landlord shall permit the
direct or indirect assignment of this Lease by Tenant and/or sublease of the Lease whether occurring by actual assignment of interests,
merger, conversion or other operation of law, to a third party (collectively the “Assignment”)
if such third party is, in Landlord’s commercially reasonable opinion, of equal or better financial strength and capability
as Tenant. 

 

Landlord
shall permit the direct or indirect assignment of any part of an Initial Member’s ownership interest in Tenant, whether occurring
by actual assignment of interests, merger, conversion or other operation of law, to a third party (also an “Assignment”)
if such third party is, in Landlord’s commercially reasonable opinion, of equal or better financial strength and capability as
the Initial Member transferring the interest. Additionally, without Landlord written consent, an Initial Member of Tenant may directly
or indirectly assign all or any part of such Initial Member’s ownership interest in Tenant, whether occurring by actual assignment
of interests, merger, conversion or other operation of law, to the other Initial Member (also an 

 

    	 	30	 

     

    

 

“Assignment”).
The transferee of any Assignment permitted pursuant to this Section 20.4 shall be a “Permitted Transferee”
for purposes hereof. 

 

At
least thirty (30) days prior to the occurrence of any Assignment, merger, conversion or other similar event (collectively, an “other
event”), Tenant shall deliver to Landlord notice of such Assignment or other event, together
with information concerning the anticipated date for closing of the Assignment or other event and, if the proposed assignee is
not an Initial Member, the proposed assignee’s Financial Statements for then current (in unaudited form if mid-fiscal year for
such assignee) and the two (2) prior fiscal years. Within fifteen (15) days after delivery to Landlord of a request for Assignment
or other event, Landlord shall advise Tenant whether any additional information is required. Landlord shall provide such consent
or reason for withholding consent within fifteen (15) days after delivery to Landlord of notice of such Assignment or other event,
and such reasonably requested financial information for assignee. Landlord’s failure to provide such consent or reason for withholding
consent within such fifteen (15) day period shall be deemed disapproval. In the event Tenant desires to make a sublease or assignment
of the Lease, or assignment of an Initial Member’s ownership interest in Tenant, and Landlord’s consent is required hereby, Landlord’s
consent shall not be unreasonably or arbitrarily withheld, conditioned or delayed. 

 

ARTICLE 21.

ESTOPPEL CERTIFICATES AND FINANCIAL
STATEMENTS

 

21.1      At
any time and from time to time within twenty (20) days following written request by Landlord, Tenant will furnish to Landlord a
certificate from an authorized member of Tenant, confirming and containing such factual certifications and representations as to
this Lease as Landlord may reasonably request, which certificate, at a minimum, shall identify Tenant and this Lease, shall certify
that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force
and effect as so modified), shall confirm that Landlord is not in default as to any obligations of Landlord under this Lease (or
if Landlord is in default, specifying any default), shall confirm whether Tenant is in default as to any obligations of Tenant
under this Lease, and shall confirm the Term, the expiration date of the Term, and the amount of Minimum Rental in effect at the
time of such certificate. Any such certificate furnished pursuant to this Article maybe relied upon by Landlord and any prospective
purchaser of the Leased Property. If Tenant does not provide such certificate within the time period set forth herein, in addition
to all other remedies available to Landlord under this Lease, Tenant shall be liable to Landlord for $1,000 for each day after
the due date until the certificate is delivered to Landlord. Notwithstanding the foregoing, such $1,000 per day penalty shall only
apply if Landlord, in its written request for the estoppel certificate, clearly states that Tenant’s failure to deliver the estoppel
certificate to Landlord within the time period set forth herein will subject Tenant to the penalties set forth herein (and such
notice shall be given in bold, all capital letters and font of not less than 14 point). 

 

21.2      Tenant
will furnish or cause to furnish the following statements to Landlord (Landlord shall keep such information confidential as set
forth in Section 21.3 below):

 

(i)        within
twenty (20) days after Landlord’s request (but not earlier than one-hundred twenty (120) days after the end of Tenant’s fiscal
year), a copy of the Financial

 

    	 	31	 

     

    

 

Statements for the preceding
fiscal year of Tenant and, to the extent such Financial statements are prepared and available, as to Tenant’s general partner or
managing member;

 

(ii)         within
twenty (20) days after Landlord’s request, such other information respecting the financial performance, condition and affairs of
Tenant and Tenant’s Initial Members as Landlord may reasonably request from time to time, to the extent that such information is
prepared and available; and Tenant shall not be obligated to provide such information that it deems confidential and sensitive
in its reasonable discretion; and

 

(iii)        no
more than twice per year, in the event Landlord is attempting to place financing on or sell the Leased Property, within twenty
(20) days after Landlord’s request, a balance sheet of Tenant as of the most recent calendar, a statement of profit and loss of
Tenant on a cumulative basis through such quarter and a statement of cash flows of Tenant for such period, in each case, in reasonable
detail and scope, and certified to be true and complete by a financial officer of Tenant having knowledge thereof, and the foregoing
financial statements all being prepared in accordance with GAAP (except as otherwise stated therein).

 

21.3        Landlord
shall keep all information provided by Tenant confidential and shall not share such information with any third parties, other
than its attorneys, accountants, lenders, financial partners and financial advisors, which persons shall covenant to kept such
information confidential as well. Additionally, Landlord may share such information if specifically requested by a current or prospective
Facility Mortgagee or purchaser.

 

ARTICLE 22.

inspection

 

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

 

ARTICLE 23.

QUIET ENJOYMENT

 

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

 

    	 	32	 

     

    

 

ARTICLE 24.

NOTICES

 

24.1       All
Notices. All notices, demands, requests, consents, approvals and other communications or documents to be provided under
this Lease shall be in writing and shall be given to the party at its address or telecopy number set forth below or such other
address or telecopy number as the party may later specify for that purpose by notice to the other party. Each notice shall, for
all purposes shall be deemed given and received:

 

(i)
        If given by telecopy, when the telecopy is transmitted to the party’s telecopy number
specified below and confirmation of complete receipt is received by that transmitting party during normal business hours on any
Business Day or on the next Business Day if not confirmed during normal business hours;

 

(ii)        If
hand delivered to a party when the copy of the notice is delivered;

 

(iii)      If
given by nationally recognized and reputable overnight delivery service, the day on which the notice is actually received by the
party at the address of the party specified below in this Article 24; or

 

(iv)       If
given by certified mail, return receipt requested, postage prepaid, two Business Days after posted with the United States Postal
Service, at the address of the party specified below, or if so addressed but receipt is refused:

 

If to Landlord:

 

Prevarian Hospital Partners, LP

5949 Sherry Lane, Suite 835

Dallas, Texas 75225

Attention: Kathy delaVergne

Telephone: (214) 736-7002

Telecopy: (214) 736-7020

 

With a copy to:

 

Smith, Stern, Friedman & Nelms,
P.C.

6688 N. Central Expressway, Suite 550

Dallas, Texas 75206

Attention: Attn: Fielder F. Nelms, Esq.

Telephone: 214-739-0606

Telecopy: 214-739-0608

 

    	 	33	 

     

    

 

If to Tenant:

 

CTRH, LLC

7733 Forsyth Blvd., Suite 2300

St. Louis, MO 63105-1806

Attention: Donald A. Adam

Telephone: 314-659-2200

Telecopy: 866-812-2832

 

With a copy to:

 

Thompson Coburn LLP

Attn: James E. Dillon

One US Bank Plaza

St. Louis, Missouri 63101

Telephone: 314-552-6330

Telecopy: 314-552-7330

 

ARTICLE 25.

APPRAISAL

 

Intentionally Deleted.

 

ARTICLE 26.

PURCHASE RIGHTS

 

26.1       Landlord
Intended Sale. During the Term hereof and provided that Tenant is not in default hereunder at such time, and in the event
that Landlord desires to sell the Leased Property, Tenant shall have an opportunity to purchase the Leased Property upon the terms
and conditions set forth in this Section 26.1. In the event that Landlord desires to sell the Leased Property and/or list the Leased
Property for sale, then Landlord shall deliver written notice to Tenant of its intent to sell and/or list the Leased Property and
the material terms and conditions of such proposed sale or listing (the “Sale Notice”). The material terms that
shall be included in Landlord’s Sale Notice to Tenant shall include, at a minimum, (i) the price for the Leased Property and, if
applicable, the terms of any owner financing, (ii) brokerage fees to be paid by Landlord, (iii) the amount of any deposit required
in connection with a contract for sale and when such deposit will be earned by Landlord, and (iv) the date or time period for closing.
Tenant shall have a period of twenty (20) days after receipt of Landlord’s Sale Notice to deliver to Landlord a form of purchase
and sale agreement meeting the minimum terms and conditions set forth in the Sale Notice. Landlord shall respond to Tenant’s purchase
and sale agreement within a period of ten (10) days following its delivery to Landlord, either accepting or rejecting the proposed
purchase and sale agreement terms and conditions. The provisions hereof shall not apply to a proposed sale to an Affiliate of Landlord.

 

26.2      First
Refusal to Purchase. During the Term hereof and provided that Tenant is not in default hereunder at such time, Tenant shall
have a first refusal option to purchase the Leased Property as set forth in this Section 26.2. In the event that Landlord receives
a bona fide

 

    	 	34	 

     

    

 

written offer to purchase the Leased Property from a third party
in letter of intent form, which offer Landlord intends to accept (or has accepted subject to Tenant’s right of first refusal granted
herein) (a “Third Party Offer”), then Landlord shall promptly provide Tenant with a copy of such Third Party
Offer (the “Third Party Offer Notice”) and Tenant shall have fifteen (15) days after receipt of the Third Party
Offer Notice in which to elect to purchase the Leased Property on the same terms and conditions contained in the Third Party Offer.
Tenant shall timely provide written confirmation to Landlord of its rejection of its right to purchase the Leased Property on the
terms and conditions stated in any Third Party Offer, except that Tenant shall not be entitled to any inspection or feasibility
period, but Tenant shall have the same period as the third party to inspect and review survey and title matters. If Tenant should
fail to timely provide such written confirmation of its rejection within such fifteen (15) day period, then Tenant shall be deemed
to have elected not to meet the terms of the Third Party Offer Notice and Landlord and the third party shall be entitled to proceed
with the sale of the Leased Property free and clear of any Tenant right of first refusal to purchase the Leased Property. If Tenant
exercises the foregoing option, then such purchase shall be consummated within the time period set forth in the Third Party Offer
(reduced by an inspection or feasibility period) and in accordance with the provisions of Article 15 hereof to the extent not inconsistent
herewith. If Tenant shall not exercise Tenant’s option to purchase set forth above within said twenty (20) day period after receipt
of the Third Party Offer Notice, Landlord shall be free to sell the Leased Property to the third party, or its assignee or affiliated
entity, at the price, terms and conditions set forth in such offer. Notwithstanding anything to the contrary contained in the foregoing,
the terms of the Third Party Offer may be adjusted between Landlord and the Third Party after Tenant’s refusal or decline to
purchase under this Section 26.2 as follows: (i) the purchase price may be increased or decreased by 5% or less; (ii) the sharing
of expenses in such sale may be changed in any manner that does not effectively reduce the purchase price by 5% or more; (iii)
any time periods for inspection, feasibility or closing may be extended from that set forth in the Third Party Offer Notice for
up to ninety (90) days; and (iv) additional earnest money may be required or Landlord may require additional consideration (whether
applicable or non-applicable to the purchase price) as a condition of any extension of inspection, feasibility or closing periods.
In the event that the Third Party Sale fails to close, for whatever reason, Tenant shall be entitled to exercise its right of first
refusal as provided in this Section 26.2, as to any subsequently received bona fide third party offer for purchase of the Leased
Property that occurs during the Term of this Lease. Notwithstanding anything to the contrary contained in this Section 26.2, if
within a single listing period, not to exceed a six (6) month period, Landlord receives a Third Party Offer for the purchase of
the Leased Property for at least the asking price for the Leased Property set forth in the Sale Notice delivered to Tenant and
setting a closing date within sixty (60) days of that set forth in the Sale Notice, then Tenant shall not have a right of first
refusal to purchase the Leased Property. In the event that a Third Party Offer meeting the conditions set forth in the immediately
preceding sentence is received by Landlord, Landlord shall deliver to Tenant the Third Party Notice otherwise required by this
Section 26.2 and shall additionally state on such notice that it believes Tenant to have no right of first refusal to purchase
the Property based upon the Third Party Offer made.

 

26.3      Option
to Purchase the Personal Property. Unless the Leased Property is conveyed to Tenant pursuant to the terms hereof, Landlord
shall have the option to purchase the personal property belonging to Tenant and used at the Leased Property for its Permitted Use
and ancillary uses, at the expiration or earlier termination of this Lease upon ten (10) days’ prior

 

    	 	35	 

     

    

 

 

written notice to Tenant.
The purchase price for Tenant’s personal property shall be an amount equal to its then-current book value subject to and with appropriate
price adjustments for all equipment leases, conditional sales contracts, security interests and other encumbrances to which Tenant’s
Personal Property is subject.

 

26.4       Negative
Pledge. Tenant shall not, and shall not permit any of its Affiliates to, create, incur, permit or suffer to exist any lien
upon Tenant’s property or the Leased Property now owned or hereafter acquired, except for Permitted Liens.

 

ARTICLE 27.

DEFAULT BY LANDLORD

 

27.1       Default
by Landlord. Landlord shall be in default of its obligations under this Lease if Landlord shall fail to observe or perform
any term, covenant or condition of this Lease on its part to be performed and such failure shall continue for a period of sixty
(60) days after written notice thereof from Tenant, unless such failure cannot with due diligence be cured within a period of sixty
(60) days, in which case such failure shall not be deemed to continue if Landlord, within said sixty (60) day period, proceeds
promptly and with due diligence to cure the failure and diligently completes the curing thereof. The time within which Landlord
shall be obligated to cure any such failure shall also be subject to extension of time due to the occurrence of any Unavoidable
Delay. In the event Landlord fails to cure any such default, Tenant shall have all remedies available to Tenant hereunder or at
law or in equity. Any sums owed Tenant by Landlord hereunder shall bear interest at the Overdue Rate from the date due and payable
until the date paid.

 

27.2       Tenant’s
Right to Cure. Subject to the provisions of Section 28.1, if Landlord shall breach any covenant to be performed by it under
this Lease, Tenant, after notice to and demand upon Landlord in accordance with Section 27.1., without waiving or releasing any
obligation of Landlord hereunder, and in addition to all other remedies available hereunder and at law or in equity to Tenant,
may (but shall be under no obligation at any time thereafter to) make such payment or perform such act for the account and at the
expense of Landlord. All sums so paid by Tenant and all costs and expenses (including reasonable attorneys’ fees) so incurred,
together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Tenant,
shall be paid by Landlord to Tenant on demand. The rights of Tenant hereunder to cure and to secure payment from Landlord in accordance
with this Section 27.2 shall survive the termination of this Lease.

 

ARTICLE 28.

LIMITED MEDIATION / LIMITED
ARBITRATION

 

28.1      Limited
Mediation / Limited Arbitration. In the event that a dispute arises between Landlord and Tenant regarding
whether the Improvements have become Unsuitable for their Permitted Use in the event of a casualty or condemnation as set forth
in Articles 12 and 13 of this Lease, then Landlord and Tenant agree, within fifteen (15) business days after a dispute has arisen
between them concerning the suitability of the Leased Property for its Permitted Use under Articles 12 and 13, to submit their
dispute before a mutually agreed upon mediator and to use good faith efforts to reach an agreement concerning the continued suitability
of the Leased

 

    	 	36	 

     

    

 

 

Property for its Permitted Use. In the
event that Landlord and Tenant are unable to settle their dispute, then the parties agree to arbitrate their claim as set forth
in this Article 28. Unless agreed to by Landlord and Tenant, no other controversy between the parties hereto shall be required
to be settled by arbitration or mediation.

 

28.2        Appointment
of Arbitrator. The party or parties requesting arbitration shall serve upon the other a written demand therefore specifying
the matter to be submitted to arbitration, and nominating an arbitrator. Within twenty (20) days after receipt of such written
demand and notification, the other party shall, in writing, nominate a competent disinterested arbitrator and the two arbitrators
so designated shall, within ten days thereafter, select a third (3rd) arbitrator and give immediate written notice of such selection
to the parties and shall fix in said notice a time and place for the first (1st) meeting of the arbitrators, which meeting shall
be held as soon as conveniently possible after the selection of all arbitrators, at which time and place the parties to the controversy
may appear and be heard. All such arbitrators shall be disinterested parties and shall be picked from a pool of professionals and
educators in the medical field, such as administrators, senior managers or officers of rehabilitation / long term acute care operating
management companies or university personnel qualified in health care administration.

 

28.3       Third
Arbitrator. In case the notified party or parties shall fail to make a selection upon notice, as aforesaid, or in case
the first two arbitrators selected shall fail to agree upon a third arbitrator within ten (10) days after their selection, then
such arbitrator or arbitrators may, upon application made by either of the parties to the controversy, after twenty (20) days’
written notice thereof to the other party or parties, have a third arbitrator appointed by any judge of any United States court
of record having jurisdiction in the state in which the Leased Property is located or, if such office shall not then exist, by
a judge holding an office most nearly corresponding thereto.

 

28.4      Arbitration
Procedure. Said arbitrators shall give each of the parties not less than ten days’ written notice of the time and place
of each meeting at which the parties or any of them may appear and be heard and after hearing the parties in regard to the matter
in dispute and taking such other testimony and making such other examinations and investigations as justice shall require and as
the arbitrators may deem necessary, they shall decide the questions submitted to them. The decision of said arbitrators in writing
signed by a majority of them shall be final and binding upon the parties to such controversy. In rendering such decisions, the
arbitrators shall not add to, subtract from or otherwise modify the provisions of this Lease.

 

28.5       Expenses.
The expenses of such arbitration shall be divided between Landlord and Tenant unless otherwise specified in the decision of
the arbitrators. Each party in interest shall pay the fees and expenses of its own counsel.

 

ARTICLE 29.

FINANCING OF THE LEASED PROPERTY

 

Intentionally Deleted.

 

    	 	37	 

     

    

 

ARTICLE 30.

SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE

 

Subject to the provisions
of this Article 30, Tenant agrees that this Lease shall at all times be subject and subordinate to the lien of any Facility Mortgage,
and Tenant agrees, upon demand, without cost, to execute instruments as may be reasonably required to further effectuate or confirm
such subordination, so long as such subordination recognizes Tenant’s rights under this Lease in the manner described in the following
paragraph. The subordination contained herein shall be subject to the execution and delivery of a Subordination, Non-Disturbance,
and Attornment Agreement ( “SNDA”) by the applicable Facility Mortgagee. The parties stipulate and agree the form
of SNDA attached hereto is an acceptable form, but recognize that it is but one example of an acceptable SNDA. Upon Landlord’s
request to Tenant, the parties agree to negotiate in good faith to enter into an SNDA acceptable to the parties and Facility Mortgagee.

 

Except
as expressly provided in this Lease by reason of the occurrence of an Event of Default, and as a condition to the subordination
described in this Article 30 above or to Tenant’s obligation to execute any instruments as otherwise required under this Article
30 above, Tenant’s tenancy and Tenant’s rights under this Lease or any Easement shall not be disturbed, terminated or otherwise
adversely affected, nor shall this Lease be affected, by the existence of, or any default under, any Facility Mortgage, and in
the event of a foreclosure or other enforcement of any Facility Mortgage, or sale in lieu thereof, the purchaser at such foreclosure
sale shall be bound to Tenant for the Term of this Lease and any Extension Term, the rights of Tenant under this Lease shall expressly
survive, and this Lease shall in all respects continue in full force and effect so long as no Event of Default has occurred and
is continuing. Upon request, Tenant and Facility Mortgagee shall enter into a Subordination, Non-Disturbance and Attornment Agreement
setting forth the provisions of this Article 30. Tenant shall not be named as a party defendant in any such foreclosure suit, except
as may be required by law.

 

Notwithstanding
the provisions of Article 30 above, the holder of any Facility Mortgage to which this Lease is subject and subordinate shall have
the right, at its sole option, at any time, to subordinate and subject the Facility Mortgage, in whole or in part, to this Lease
by recording a unilateral declaration to such effect.

 

At any
time prior to the expiration of the Term, Tenant agrees, at the election and upon demand of any owner of the Leased Property, or
of a Facility Mortgagee who has granted nondisturbance to Tenant pursuant to Article 30 above, to attorn, from time to time, to
any such owner or Facility Mortgagee, upon the terms and conditions of this Lease, for the remainder of the Term. The provisions
of this Article 30 shall inure to the benefit of any such owner or Facility Mortgagee, shall apply notwithstanding that, as a matter
of law, this Lease may terminate upon the foreclosure of the Facility Mortgage, shall be self-operative upon any such demand, and
no further instrument shall be required to give effect to said provisions.

 

Tenant
and Landlord agree that, if requested by the other to, without charge, enter into a Subordination, Non-Disturbance and Attornment
Agreement reasonably requested by a Facility Mortgagee or Tenant, as the case may be, provided such agreement contains provisions
relating to non-disturbance in accordance with the provisions of Article 30 above, Tenant hereby agrees for the benefit of any
Facility Mortgagee whose name and address have been provided to Tenant

 

    	 	38	 

     

    

 

 

that Tenant will not, (i) without in each
case securing the prior written consent of such Facility Mortgagee, such consent not to be unreasonably withheld, conditioned or
delayed, amend or modify this Lease or enter into any agreement with Landlord to do so, (ii) without the prior written consent
of such Facility Mortgagee which may be withheld in its sole discretion, cancel or surrender or seek to cancel or surrender the
Term hereof, or enter into any agreement with Landlord to do so (the parties agreeing that the foregoing shall not be construed
to affect the rights or obligations of Tenant, Landlord or Facility Mortgagee with respect to any termination permitted under the
express terms hereof or (iii) pay any installment of Minimum Rent more than one (1) month in advance of the due date thereof or
otherwise than in the manner provided for in this Lease.

 

If. any
Person providing financing of Trade Fixtures, requires a landlord consent or collateral access agreement from Landlord, Landlord
shall execute and deliver such consent or such collateral access agreement as is reasonably acceptable to Landlord promptly after
Tenant’s request therefore.

 

ARTICLE 31.

EXTENSION TERMS

 

Tenant
and/or its Permitted Transferee shall have the right, at its option, to extend the Initial Term of this Lease for four (4) consecutive
extension terms (the “Extension Terms”), each Extension Term being five (5) years in length. Each Extension
Term shall commence on the day after the expiration of the preceding Lease Term, and shall expire, in the case of the first (1st)
Extension Term, on the fifth (5th) anniversary of the last day of the Initial Term, and in the case of the second (2nd)
Extension Term, on the tenth (10th) anniversary of the last day of the Initial Term, and in the case of the third (3rd) Extension
Term, on the fifteenth (15th) anniversary of the last day of the Initial Term, and in the case of the fourth (4th)
Extension Term, on the twentieth (20th) anniversary of the last day of the Initial Term. The option to extend the
Initial Term or any Extension Term of this Lease for an Extension Term as described above must be exercised by Tenant at least
six (6) months prior to the last day of the Initial Term or Extended Term, as the case may be. Failure of Tenant to timely exercise
any right with respect to the Extension Terms shall terminate all further extension rights. Notwithstanding the foregoing, in
addition to the Extension Terms listed above, in the event that an Expansion Lease is entered into pursuant to the provisions
of Article 36 below, Tenant shall have the right, at its option, to extend the Initial Term of this Lease for such amount of time
such that the Initial Term of this Lease corresponds with and is equal to the initial term of the Expansion Lease (the “Expansion
Extension”), in which case the Initial Term of this Lease shall include such additional period of time. The option for
the Expansion Extension must be exercised by Tenant no later than one (1) year following the commencement of the Expansion Lease.
Failure of Tenant to timely exercise the Expansion Extension option shall not terminate other further extension rights. The terms
and conditions of this Lease shall apply to the Expansion Extension and each Extension Term with the same force and effect as
if such Expansion Extension and Extension Term had originally been included in the Initial Term of the Lease. Minimum Rent shall
increase by three percent (3%) over the Minimum Rent for the preceding lease year during each year of the Expansion Extension
and each Extension Term, including the first year of the Expansion Extension and any Extension Term. The right of Tenant to exercise
its right to extend the Initial Term for the Expansion Term and for any Extension Term shall be conditioned upon

 

    	 	39	 

     

    

 

this Lease being in full force and effect,
and no Event of Default then existing as of the date that Tenant notifies Landlord of Tenant’s decision to extend the term of this
Lease for any of the Extension Terms. The Initial Term, together with any Extension Term which Tenant properly exercises its option
with respect to, and for which the conditions related thereto are satisfied, shall constitute the “Term” of this
Lease.

 

ARTICLE 32.

CONSTRUCTION OF THE IMPROVEMENTS

 

Landlord
shall construct the Improvements in accordance with the terms of the Work Letter attached hereto as Exhibit G.

 

ARTICLE 33.

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

33.5      Transfers
by Landlord. If Landlord or any successor owner of the Leased Property shall convey the Leased Property in accordance with
the terms hereof (subject to the terms of Article 26 hereof), other than as security for a debt, the grantee or transferee of the
Leased Property shall expressly assume all obligations of Landlord hereunder arising or accruing from and after the date of such
conveyance or transfer, and shall be reasonably capable of performing the obligations of Landlord hereunder and Landlord or such
successor owner, as the

 

    	 	40	 

     

    

 

 

 

case may be, shall thereupon be released
from all future liabilities and obligations of Landlord under this Lease arising or accruing from and after the date of such conveyance
or other transfer and all such future liabilities and obligations shall thereupon be binding upon the new owner.

 

33.6      General.
Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities of, Tenant and Landlord
against the other arising out of or relating to this Lease and arising prior to any date of termination of this Lease shall survive
such termination. If any term or provision of this Lease or any application thereof shall be invalid or unenforceable, the remainder
of this Lease and any other application of such term or provision shall not be affected thereby. If any late charges provided
for in any provision of this Lease are based upon a rate in excess of the maximum rate permitted by applicable law, the parties
agree that such charges shall be fixed at the maximum permissible rate. Neither this Lease nor any provision hereof may be changed,
waived, discharged or terminated except by an instrument in writing and in recordable form signed by Landlord and Tenant. All
the terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. The headings in this Lease are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. This Lease shall be governed by and construed in accordance with the laws of Texas. This Lease may be executed
in one or more counterparts, each of which shall be an original but, when taken together, shall constitute but one document.

 

33.7      Memorandum
of Lease. Landlord and Tenant shall, promptly upon the request of either, enter into a short form memorandum of this Lease
in form suitable for recording under the laws of the state in which the Leased Property is located in which reference to this
Lease, and all options contained herein, shall be made. Except as set forth in the preceding sentence, the parties shall not record
this Lease.

 

33.8      Transfer
of Licenses. Upon the expiration or earlier termination of the Term, Tenant shall take all action necessary to effect
or useful in effecting the transfer to Landlord or Landlord’s nominee of all licenses, operating permits and other governmental
authorizations and all service contracts which may be necessary or useful in the operation of the Facility and which relate exclusively
to the Facility, which have not previously been transferred or assigned to Landlord and further which are in fact transferable
to Landlord or Landlord’s nominee. To the extent Landlord or its nominee operates under Tenant’s licenses, operating
permits or other governmental authorization or service contracts after the termination of this Lease, then Landlord agrees to
indemnify and hold harmless Tenant against all demands, claims, costs and actions brought against Tenant related to such transferred
licenses, operating permits, governmental authorizations or service contracts.

 

33.9       Landlord’s
Liability. The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease shall be limited
to Tenant’s actual direct, but not consequential, damages therefore and shall be recoverable from the interest of Landlord
in the Leased Property, and Landlord shall not be personally liable for any deficiency. This section shall not be deemed to limit
or deny any remedies, which Tenant may have in the event of default by Landlord hereunder which do not involve the personal liability
of Landlord.

 

33.10    Brokerage.
Landlord and Tenant each warrant to the other that it has not dealt

 

    	 	41	 

     

    

 

with or engaged any broker or agent in
connection with the negotiation or execution of this Lease other than GP Prevarian Hospital Partners, LLC, an affiliate of Landlord,
which represents Landlord, and GVA Cawley Brokerage Services, Ltd. Landlord shall defend, indemnify and hold harmless Tenant for
any fees or commissions of GP Prevarian Hospital Partners,. LLC and GVA Cawley Brokerage Services, Ltd. (except that the fees and
commissions of GVA shall not exceed $300,000). Except as provided in the foregoing sentence, Tenant and Landlord shall each indemnify
the other against all costs, expenses, attorneys’ fees, and other liability for commissions or other compensation claimed by any
broker or agent claiming the same by, through, or under the indemnifying party.

 

33.11    Property
Code. Landlord and Tenant agree that each provision of this Lease for determining charges and amounts payable by Tenant
(including, without limitation, the provisions related to Minimum Rent contained in Section 2.1, the provisions related to Additional
Charges contained in Section 2.2, the provisions related to Impositions contained in Section 2.2, and the provisions related to
insurance contained in Sections 3.4 are commercially reasonable and, as to each such charge or amount, constitutes a statement
of the amount of the charge or a method by which the charge is to be computed for purposes of Section 93.012 of the Texas Property
Code.

 

33.12   Acquisition
Contingency. Tenant hereby acknowledges and agrees that Landlord is not the fee simple owner of the Land as of the Effective
Date, and Tenant hereby further acknowledges and agrees that Landlord has not made any representation or warranty regarding Landlord’s
ownership of the Land. Notwithstanding anything to the contrary set forth herein, the effectiveness of this Lease is expressly
subject to, conditioned and contingent upon Landlord acquiring fee simple title to the Land. Nothing set forth herein will be
deemed to require Landlord to acquire the Land, and in no event will Landlord be liable for any damages claimed by Tenant resulting
from Landlord’s failure to purchase the Land.

 

33.13    Waiver
of Landlord’s Lien. Landlord hereby waives any statutory or common law “landlord’s lien” as to
any of Tenant’s personal property and agrees to deliver a confirmation of such waiver from time to time as requested by
Tenant in a form reasonably acceptable to Tenant. Notwithstanding any other provision of this Lease to the contrary, Tenant’s
interest in its personal property and equipment or any interest of any person or entity acting by or through Tenant and any interest
of Tenant’s lenders, banks, mortgagees, leasing companies or similar entities (or the lenders, leasing companies or similar
entities of any subtenant of Tenant) in any such property and equipment shall at no time be subordinate to any interest of any
of Landlord’s lenders, mortgagees, banks, leasing companies or similar entities and Landlord, if so requested by Tenant,
Landlord shall obtain from all of its current and future lenders, mortgagees, banks, leasing companies, or other similar entity,
a waiver of any such security interest in a form reasonably acceptable to Tenant and shall deliver or cause to be delivered to
Tenant such waiver.

 

33.14     Groundwater.
Tenant and its successor and assigns hereby covenant and agree not to use any groundwater underlying the Leased Property for
commercial or industrial purposes.

 

    	 	42	 

     

    

 

ARTICLE 34. 

GLOSSARY OF
TERMS 

 

34.1      Definitions.
For purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the terms
defined in this Article 34 have the meanings assigned to them in this Article 34 and include the plural as well as the singular,
(b) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP as at the time
applicable, (c) all references in this Lease to designated “Articles,” “Sections” and other subdivisions
are to the designated Articles, Sections and other subdivisions of this Lease, and (d) the words “herein,” “hereof’
and “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article,
Section or other subdivision and (e) the word “including” shall mean “including without limitation.” For
purposes of this Lease, the following terms shall have the meanings indicated:

 

“Accreditation”
has the meaning set forth in Section 5.2(a).

 

“ADA”
has the meaning set forth in Section 7.1(e).

 

“Additional
Charges” has the meaning set forth in Section 2.2 hereof.

 

“Additional
Costs” has the meaning given it in the Work Letter attached hereto as Exhibit G.

 

“Affiliate,”
when used with respect to any Person, means any other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such Person. For the purposes of this definition, “control,” as used with respect
to any person, shall mean the possession, directly and indirectly, of the power to direct or cause the direction of the management
and policies of such person, through the ownership of voting securities, partnership interests or other equity interests.

 

“Amortization
Amount” shall have the meaning set forth in Section 7.1 (f).

 

“Assignment”
has the meaning set forth in Section 20.4.

 

“Assist
in Development” has the meaning set forth in Section 5.3(b).

 

“Award”
means all compensation, sums or anything of value awarded, paid or received on a total or partial Condemnation.

 

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which national banks in the City
of Austin, Texas are closed.

 

“Capital
Additions” means any expenditure which should be capitalized in accordance with GAAP.

 

“Charge”
has the meaning set forth in Article 10 hereof.

 

“CO”
has the meaning set forth in Section 5.2(a).

 

    	 	43	 

     

    

 

“Commencement Date” has the meaning
set forth in Article 1.

 

“Condemnation”
means the transfer of all or any part of the Leased Property as a result of (i) the exercise of any governmental power, whether
by legal proceedings or otherwise, by a Condemnor or (ii) a voluntary sale or transfer by Landlord to any Condemnor, either under
threat of Condemnation or while legal proceedings for Condemnation are pending.

 

“Condemnor”
means any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

“Contract
Documents” has the meaning given it in the Work Letter, attached hereto as Exhibit G.

 

“Control”
means, as used with respect to any Person, the possession, directly and indirectly, of the power to direct or cause the direction
of the management and policies of such Person, through the ownership of voting securities, partnership interests or other equity
interests.

 

“Damage Notice” has the meaning
set forth in Section 12.1.

 

“Date of Taking”
means the date the Condemnor has the right to possession of the property being condemned.

 

“Effective Date”
has the meaning set forth in the first paragraph of this Lease.

 

“Event
of Default” has the meaning set forth in Section 14.1.

 

“Extension
Term” has the meaning set forth in Section 31.

 

“Facility”
means the approximately 59,000 square foot in-patient rehabilitation facility to be constructed and operated at the Leased Property.

 

“Facility
Mortgage” has the meaning set forth in Section 11.1.

 

“Facility
Mortgagee” has the meaning set forth in Section 11.1.

 

“Fiscal
Year” means the 12-month period from January 1 to December 31.

 

“Financial
Statements” means for any fiscal year or other accounting period for Tenant, or such other party identified as being
obligated to deliver to Landlord its Financial Statements, profit and loss statements for such period and for the period from
the beginning of the respective fiscal year of Tenant or such other party to the end of such period and the related balance sheet
as at the end of such period, together with the notes thereto, all in reasonable detail and setting forth in comparative form
the corresponding figures for the corresponding period in the preceding fiscal year of Tenant, or such other party, and prepared
in accordance with GAAP, except as noted.

 

“Final
Approval” has the meaning set forth in Section 5.2(a).

 

“Final
Construction Documents” has the meaning given it in the Work Letter.

 

    	 	44	 

     

    

 

“Final
Project Budget: has the meaning given it in the Work Letter attached hereto as Exhibit G.

 

“Fixtures”
shall mean all fixtures (except Trade Fixtures) and as more specifically set forth in Article 1.

 

“Force
Majeure” shall have the meaning set forth in the Work Letter, attached hereto as Exhibit G.

 

“Full
Replacement Cost” has the meaning set forth in Section 11.2.

 

“GAAP” has the meaning set forth in Section
7.1(f).

 

“Governmental
Authority” shall mean any federal, state, county, municipal, foreign or other governmental or regulatory authority,
agency, board, body, instrumentality, court or quasi governmental authority (or private entity in lieu thereof).

 

“Guarantor”
has the meaning set forth in Section 2.4(b).

 

“Hazardous
Materials” means any substance, including asbestos or any substance containing asbestos, the group of organic compounds
known as polychlorinated biphenyls, flammable explosives, radioactive materials, medical waste, chemicals, pollutants, effluents,
contaminants, emissions or related materials and items included in the definition of hazardous or toxic wastes, materials or substances
under any Hazardous Materials Law.

 

“Hazardous
Materials Law” means any law, regulation or ordinance relating to environmental conditions, medical waste and industrial
hygiene, including the Resource Conservation and Recovery Act of 1976 (“RCRA”), the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (“CERCLA”), as amended by the Superfund Amendments and Reauthorization Act
of 1986 (“SARA”), the Hazardous Materials Transportation Act, the Federal Water Pollution Control Act, the Clean Air
Act, the Clean Water Act, the Toxic Substances Control Act, the Safe Drinking Water Act, and all similar federal, state and local
environmental statutes and ordinances, whether heretofore or hereafter enacted or effective and all regulations, orders, or decrees
heretofore or hereafter promulgated thereunder.

 

“Impositions”
means, collectively, all taxes relating to the Leased Property, including all ad valorem, sales and use, gross receipts, action,
privilege, rent (with respect to any ground leases) or similar taxes, assessments (including all assessments for public improvements
or benefits, whether or not commenced or completed prior to the date hereof and whether or not to be completed within the Term),
water, sewer or other rents and charges, excises, tax levies, fees (including license, permit, inspection, authorization and similar
fees), and all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or
unforeseen, of every character in respect of the Leased Property and/or the Rent (including all interest and penalties thereon
due to any failure in payment by Tenant), which at any time prior to, during or in respect of the Term hereof may be assessed
or imposed on or in respect of or be a lien upon (a) Landlord or Landlord’s interest in the Leased Property, (b) the Rent,
the Leased Property or any part thereof or any rent therefrom or any estate, right, title or interest therein, or (c) any occupancy,
operation, use or possession of, sales from, or activity conducted on, or in

 

    	 	45	 

     

    

 

connection with, the Leased Property or
use of the Leased Property or any part thereof; provided, however, and notwithstanding the foregoing, that nothing contained in
this Lease shall be construed to require Tenant to pay, nor shall the term “Impositions” include (1) any tax based on
net income (whether denominated as a capital stock, excess profits, estate, inheritance or other tax) imposed on Landlord, (2)
any transfer or net revenue tax of Landlord, (3) any tax imposed with respect to the sale, exchange or other disposition by Landlord
of any portion of the Leased Property or the proceeds thereof, (4) franchise or margin taxes, or (5) except as expressly provided
elsewhere in this Lease and in the Final Project Budget, any principal or interest on any encumbrance on the Leased Property, except
to the extent that any tax, assessment, tax levy or charge which Tenant is obligated to pay pursuant to this definition and which
is in effect at any time during the Term hereof is totally or partially repealed, and a tax, assessment, tax levy or charge set
forth in clause (1), (2) , (3) or (4) is levied, assessed or imposed expressly in lieu thereof.

 

“Improvements”
has the meaning set forth in Article 1.

 

“Initial
Members” has the meaning set forth in Section 2.4(a).

 

“Initial
Term” has the meaning set forth in Article 1.

 

“Insurance
Requirements” means all terms of any insurance policy required by this Lease and all requirements of the issuer of any
such policy.

 

“Land”
has the meaning set forth in Article 1.

 

“Landlord”
means Prevarian Hospital Partners, LP, a Texas limited partnership, and its successors and assigns.

 

“Landlord’s
Work” shall have the meaning given it in the Work Letter, attached hereto as Exhibit G.

 

“Lease”
means this Lease Agreement.

 

“Lease
Guaranty” has the meaning set forth in Section 2.4(b).

 

“Lease
Year” means each period of twelve (12) full calendar months during the Term of this Lease, and in the event that the
Commencement Date is a day other than the first day of the month, then the first Lease Year shall also include the remainder of
the month in which the Commencement Date occurred.

 

“Leased
Property” has the meaning set forth in Article 1.

 

“Legal
Requirements” means all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions affecting the Leased Property or the construction, use or alteration thereof (including
zoning ordinances), whether now or hereafter enacted and in force, including any which may (a) require repairs, modifications
or alterations of or to the Leased Property, or (b) in any way adversely affect the use and enjoyment thereof, and all, permits,
licenses, authorizations and regulations relating

 

    	 	46	 

     

    

 

thereto, and all covenants, agreements,
actions and encumbrances contained in any instruments, either of record or known to Tenant (other than encumbrances created by
Landlord without the consent of Tenant), at any time in force affecting the Leased Property.

 

“Minimum
Rent” has the meaning set forth in Section 2.1 hereof.

 

“Overdue
Rate” means as of any date, a rate per annum equal to the lesser of (i) twelve percent (12%) per annum, or (ii) the
maximum rate then permitted under applicable law.

 

“Payment
Date” means any due date for the payment of the installments of Minimum Rent under this Lease.

 

“Permitted
Exceptions” has the meaning set forth in Article 1  hereof.

 

“Permitted
Liens” means (i) liens described on Exhibit B attached hereto, (ii) pledges or deposits made to secure payments of worker’s
compensation insurance (or to participate in any fund in connection with worker’s compensation insurance), unemployment
insurance, pensions or social security programs, (iii) liens imposed by mandatory provisions of law such as for materialmen, mechanics,
warehousemen and other like liens arising in the ordinary course of business, securing indebtedness whose payment is not yet due
and payable, (iv) liens for taxes, assessments and governmental charges or levies if the same are not yet due and payable or if
the same are being contested in good faith and as to which adequate cash reserves have been provided, (v) liens arising from good
faith deposits in connection with tenders, leases, real estate bids or contracts (other than contracts involving the borrowing
of money), pledges or deposits to secure public or statutory obligations and deposits to secure (or in lieu of) surety, stay,
appeal or customs bonds and deposits to secure the payment of taxes, assessments, duties or other similar charges, or (vi) liens
to secure purchase money indebtedness, so long as the indebtedness incurred to purchase the new asset is secured only by such
asset.

 

“Permitted
Transferee” has the meaning set forth in Sections 20.3 and 20.4 hereof.

 

“Permitted
Use” has the meaning set forth in Section 5.3.

 

“Person”
means a natural person, corporation, partnership, trust, association, limited liability company or other entity.

 

“Preliminary
Project Budget” means the estimated budget for the Project attached hereto as Exhibit I.

 

“Prime
Rate” means the annual rate reported by The Wall Street Journal, Southwest Edition (or, if The Wall Street
Journal shall no longer be published or shall cease to report such rates, then a publication or journal generally accepted
in the financial industry as authoritative evidence of prevailing commercial lending rates), from time to time as being the prevailing
prime rate (or, if more than one such rate shall be published in any given edition, the arithmetic mean of such rates). The prime
rate is an index rate used by The Wall Street Journal to report prevailing lending rates and may not necessarily be the
most favorable lending rate available. Any change in the Prime Rate hereunder shall take effect on the effective date of such
change in the prime rate as reported by The Wall Street Journal, without notice to Tenant or any other

 

    	 	47	 

     

    

 

action by Landlord. Interest shall be computed
on the basis that each year contains 360 days, by multiplying the principal amount by the per annum rate set forth above, dividing
the product so obtained by 360, and multiplying the quotient thereof by the actual number of days elapsed.

 

“Prohibited
Use” means any use of the Leased Property which: (i) is not a Permitted Use; or (ii) is prohibited under the Permitted
Exceptions in effect on the Effective Date of this Lease and applicable to the Leased Property.

 

“Punchlist
Items” shall have the meaning given to it in the Work Letter attached hereto as Exhibit G.

 

“Rent”
or “Rental” has the meaning set forth in Section 2.2.

 

“Request”
has the meaning set forth in Section 8.1(a).

 

“Reportable
Use” has the meaning set forth in Section 5.3.

 

“Sale
Notice” has the meaning set forth in Section 26.1.

 

“Service
Contract Employees” has the meaning set forth in Section 5.4.

 

“SNDA”
has the meaning set forth in Article 30.

 

“Substantial
Completion” shall have the meaning set forth in the Work Letter attached hereto as Exhibit G.

 

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

 

“TAS”
has the meaning set forth in Section 7.1.(e).

 

“TDSHS”
has the meaning set forth in Section 2.1.

 

“Tenant”
means CTRH, LLC, a Delaware limited liability company, and its Permitted Transferee(s).

 

“Tenant
Employees” has the meaning set forth in Section 5.4.

 

“Tenant’s
Fixture Obligations” has the meaning set forth in Section 5.2(a).

 

“Term”
means the Initial Term and any Extension Term as to which Tenant has properly and timely exercised its options to extend contained
in Article 31 hereof unless earlier terminated pursuant to the provisions hereof.

 

“Third
Party Offer” has the meaning set forth in Section 26.2.

 

“Third
Party Offer Notice” has the meaning set forth in Section 26.2.

 

    	 	48	 

     

    

 

“Trade
Fixtures” shall mean all fixtures, equipment and other items of personal property (whether or not attached to the Improvements)
which from time to time, are located at the Leased Property and which are owned or leased by Tenant or by any subtenant or other
user or occupant of the Leased Property and used by Tenant or such subtenant, user or occupant in the operation of the business
it conducts on, at or about the Leased Property.

 

“Work
Letter” shall mean Exhibit G hereto.

 

“Year
One” shall mean the first year of the Term.

 

“Year
One Annual Minimum Rent” shall have the meaning set forth in Section 2.1(a) hereof.

 

ARTICLE 35.

OPERATING LEASE

 

This Lease
is expressly contingent upon the Lease being classified as an operating lease as per the Generally Accepted Accounting Principles
(GAAP) Standards set forth in Financial Accounting Standards Board’s (FASB) Statement No. 13, Accounting for Leases. If the Lease
fails to meet one of the criteria for classifying the Lease as an operating lease vs. a capital lease, then on or before September
30, 2010, Tenant may propose an amendment to the Lease to make it qualify as an operating lease. Landlord, in its sole discretion,
may accept or reject such proposed amendment, and if Landlord rejects the amendment, either party may terminate this Lease.

 

ARTICLE 36.

EXPANSION OPTION

 

36.1.
Generally. The Improvements and the Leased Property shall be developed in a manner that permits expansion by the construction
of an additional building on the Land for use as a long term acute care hospital consisting of approximately 30,600 square feet
and housing approximately forty (40) private beds, in the approximate location shown on the Site Plan attached hereto as Exhibit
K (the “Expansion”). Tenant shall have the one-time right (the “Expansion Option”),
subject to the limitations hereinafter set forth, to require Landlord to cause an affiliate of Landlord, to construct the Expansion,
at its sole cost and expense, by written notice to Landlord at any time during the Initial Term (the “Expansion Notice”).

 

36.2
Project Scope. The Expansion shall be: (i) compatible in design and quality with the Improvements and otherwise consistent
with the Design Documents; (ii) constructed using materials similar to or comparable with the Improvements; and (iii) for an approximately
30,600 square feet long term acute care hospital housing approximately forty (40) private beds, in the approximate location shown
on the Site Plan attached hereto as Exhibit K (the “Project Scope”).

 

36.3
Landlord’s Expansion Proposal. Within the sixty (60) day period after Landlord’s receipt of Tenant’s
Expansion Notice, Landlord shall consult with Tenant regarding Tenant’s specific requirements in regard to the Expansion,
and within said time period shall notify Tenant in writing (“Landlord’s Expansion Proposal”) of (a)
any modifications to the configuration of the Expansion proposed by Tenant which Landlord believes are necessary in

 

    	 	49	 

     

    

 

order to cause the Expansion to comply
with applicable Legal Requirements (if any) and the Project Scope, (b) Landlord’s estimate of the costs of the Expansion (which
may include a development fee to a developer) which will be incurred in connection with the planning and construction of the Expansion
and other improvements to the Leased Property necessary to accommodate the Expansion, (c) the Landlord’s estimate of the Base Rent
for the Expansion, as provided in Section 36.10 below, (d) Landlord’s estimate of the time that will be required to substantially
complete construction of the Expansion (the “Expansion Time Frame”), and (e) the nature and duration of any warranties
to be provided by the contractors performing the Expansion.

 

36.4
 Tenant’s Notice to Proceed. Within
thirty (30) days following Tenant’s receipt of Landlord’s Expansion Proposal, Tenant shall notify Landlord in writing
either (i) that Tenant authorizes Landlord to proceed with the preparation of lease for the Expansion (a. “Notice to
Proceed”), or (ii) that Tenant elects not to have Landlord construct the Expansion. In the event that Tenant provides
Landlord with a Notice to Proceed, Landlord and Tenant shall cause their affiliates to enter into good faith negotiations for
a lease agreement related to the Expansion (the “Expansion Lease”). The Expansion Lease shall be on substantially
the same terms and conditions as this Lease, except that: (a) an affiliate of Landlord will be the landlord under the Expansion
Lease (the “Expansion Landlord”); (b) an affiliate of Tenant will be the tenant under the Expansion Lease (the
“Expansion Tenant”); (c) neither Landlord nor Tenant shall be a party thereto; (d) the description of the improvements
leased shall refer to the improvements identified in the Project Scope; (e) the rental structure for the Expansion Lease shall
be as agreed upon by the Expansion Landlord and Expansion Tenant; (f) the Expansion Lease shall address the manner in which the
Expansion and the Leased Property may share access and services, (g) the Expansion Lease shall address any physical connection
between the Improvements and the Expansion which may be contemplated, and (h) the Expansion Lease shall contain such other changes
and modifications to which Expansion Landlord and Expansion Tenant mutually agree. In the event that Landlord and Tenant cannot,
despite good faith efforts, agree on the terms of the Expansion Lease, either party may terminate such negotiations, in which
case the Expansion Notice will be deemed rescinded. 

 

36.5
 Lease Amendment. In the event that
an Expansion Lease is executed, Landlord and Tenant shall simultaneously enter into a mutually acceptable amendment to this Lease
in order to (a) acknowledge the Expansion, (b) reduce the size of the Land in light of the Expansion, (c) address parking and
other related matters which may be affected by the Expansion, and (d) address the manner in which the Expansion and the Leased
Property may share access and services, (e) address any physical connection between the Improvements and the Expansion which may
be contemplated. Any Memorandum of Lease executed pursuant to Section 33.7 hereof shall likewise be amended, as necessary. 

 

[The remainder of this page has intentionally been
left blank. Signature page follows.]

 

    	 	50	 

     

    

 

IN WITNESS WHEREOF, the parties have caused
this Lease to be executed as of the date first written above.

 

	Landlord:	 	Tenant:
	Prevarian Hospital Partners, LP,	 	CTRH, LLC
	a Texas limited partnership	 	 	 
	 	 	 	 	 
	By:	GP Prevarian Hospital Partners, LLC,	 	 	 
	 	a Texas limited liability company,	 	 	 
	 	its general partner	 	 	 
	 	 	 	 	 
	By:	/s/ Kathy de la Vergne	 	By: 	/s/ Donald A. Adam
	Name:	Kathy de la Vergne	 	 	Donald A. Adam,
	Title: 	Manager	 	 	Member, Board of Directors

 

    	 	51	 

     

    

 

EXHIBIT
A

 

LAND DESCRIPTION

 

DESCRIPTION

 

OF 3.681 ACRES OF LAND OUT OF
THE THOMAS GRAY SURVEY ABSTRACT NO. 310 AND THE JAMES ROGERS SURVEY, SITUATED IN THE CITY OF AUSTIN, TRAVIS COUNTY, TEXAS, BEING
THE REMAINING PORTION OF THAT CERTAIN 5.000 ACRE TRACT OF LAND DESCRIBED AS “TRACT 2” CONVEYED TO THE STATE OF TEXAS
FOR USE AND BENEFIT OF THE PERMANENT SCHOOL FUND OF RECORD IN DOCUMENT NO. 2004057397 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS
COUNTY, TEXAS; SAID 3.681 ACRES BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

 

COMMENCING,
at a 1/2 inch iron rod with cap set at the intersection of the westerly line of Guadalupe Street (100’ R.O.W.) with the
northerly line of West 45th Street (R.O.W. varies), being the southeasterly corner of said “Tract 2” and the southeasterly
corner of that certain 0.989 acre - Tract 3 conveyed to the City of Austin by Deed without Warranty of record in Document No.
2005037448 of said Official Public Records;

 

THENCE,
N62°15’50"W, along the northerly line of West 45th Street, being the southerly line of said City of Austin
0.989 - Tract 3 and a portion of the southerly line of said “Tract 2”, a distance of 149.76 feet to the
southwesterly corner of said City of Austin 0.989 acre - Tract 3, for the POINT OF BEGINNING, and southeasterly corner
hereof;

 

THENCE, continuing
along the northerly line of West 45th Street, being a portion of the southerly line of said “Tract 2”, for the southerly
line hereof, the following two (2) courses and distances:

 

		1)	N62°15’50"W,
a distance of 594.38 feet to a cut “X” set in concrete for an angle point;

 

		2)	N57°07’49"W,
a distance of 44.91 feet to a 1/2 inch iron rod with cap set at the southernmost southeasterly corner of that certain 15.546 acre
tract of land described as “Tract 1B” conveyed to the State of Texas for use and benefit of the Permanent School Fund
of record in Document No. 2004057397 of said Official Public Records, being the southwesterly corner of said “Tract 2”,
for the southwesterly corner hereof;

 

THENCE, leaving
the northerly line of West 45th Street, along a portion of the easterly line of said “Tract 1B”, being a portion of
‘the westerly line of said “Tract 2.”, for the westerly line hereof, the following three (3) courses and distances:

 

    	 	A-1	 

     

    

 

		1)	N15°11’33"W,
a distance of 36.36 feet to a cotton spindle set for the point of curvature of a non-tangent curve to the left;

 

		2)	Along
said non-tangent curve to the left having a radius of 790.00 feet, a central angle of 06°36’15", an arc length
of 91.06 feet and a chord which bears N30°41’04“E, a distance of 91.01 feet to a 1/2 inch iron rod with cap set
for the end of said curve;

 

		3)	N27°22’55"E,
a distance of 141.42 feet to the southwesterly corner of that certain 0.330 acre - Tract 4 conveyed to the City of Austin by Deed
without Warranty of record in Document No. 2005037448 of said Official Public Records, for the northwesterly corner hereof;

 

THENCE, S62°37’05"E,
leaving the easterly line of said “Tract 113”, over and across said “Tract 2”, along the southerly line
of said City of Austin 0.330 acre - Tract 4, for a portion of the northerly line hereof, a distance of 277.73 feet to a point
in the southerly line of said “Tract 1B”, being the northerly line of said “Tract 2” and the southeasterly
corner of said City of Austin. 0.330 acre - Tract 4, for an angle point hereof;

 

THENCE, in
part along the common line of said “Tract 1B” and said “Tract 2” and in part over and across said “Tract
2” along the irregular westerly lines of said City of Austin 0.989 acre - Tract 3, the following three (3) courses and distances:

 

		1)	S30°23’39"E,
a distance of 73.84 feet to a 1/2 inch iron rod with cap set for an angle point;

 

		2)	S62°37’05"E,
a distance of 317.01 feet to an angle point;

 

		3)	S27°04’34"W,
a distance of 227.65 feet to the POINT OF BEGINNING, containing an area of 3.681 acres
(160,379 sq. ft.) of land, more or less, within these metes and bounds.

 

    	 	A-2	 

     

    

 

EXHIBIT B

 

LIST OF PERMITTED EXCEPTIONS

 

		1.	Standby fees, taxes and assessments by any taxing authority
for calendar year 2010 and all subsequent years, which taxes are not yet due and payable.

 

		2.	The Facility Mortgage.

 

		3.	Slope Easement granted to the City of Austin by instrument
dated December 17, 2003, recorded under Document No. 2004008114 of the Official Public Records of Travis County, Texas.

 

		4.	Access Easement granted to the City of Austin by instrument
dated December 17, 2003, recorded under Document No. 2004008116 of the Official Public Records of Travis County, Texas.

 

		5.	Maintenance Access Easement granted to the City of Austin
by instrument dated January 9, 2004, recorded under Document No. 2004008121 as amended under Document No. 2005022922 of the Official
Public Records of Travis County, Texas.

 

		6.	Terms, provisions and conditions contained in that certain
Reciprocal Easement and Operating Agreement dated February 23, 2004, recorded under Document No. 2004033157, and amendments thereto
recorded under Document No. 2005023648, 2005037445 and 2006158803 of the Official Public Records of Travis County, Texas.

 

		7.	Construction and Repair Easement granted to the City of
Austin by instrument dated February 23, 2004, recorded under Document No. 2004033164 of the Official Public Records of Travis
County, Texas.

 

		8	Temporary Construction Easement granted to SV Triangle
Limited Partnership by instrument dated February 23, 2004, recorded under Document No. 2004033165 of the Official Public Records
of Travis County, Texas.

 

		9.	Fiber Optic Line Easement granted to the City of Austin
by instrument dated March 4, 2005, recorded under Document No. 2005037443 of the Official Public Records of Travis County, Texas.

 

		10.	Fiber Optic Line Easement granted to any State of Texas
health and human service Agency or department by instrument dated March 4, 2005, recorded under Document No. 2005037444 of the
Official Public Records of Travis County, Texas.

 

		11.	All of the oil, gas and other minerals, together with all
rights related thereto, expressed or implied, reserved by the State of Texas, for the use and benefit of the Permanent School
Fund in Deed dated ______________, recorded under Document No. ______________ of the Official Public Records of Travis County,
Texas. Said mineral estate not traced further herein.

 

    	 	B-1	 

     

    

 

EXHIBIT C

 

ESTIMATED MINIMUM RENT SCHEDULE

 

This Exhibit designates the estimated Minimum Rent for the Improvements
for each Lease Year of the Initial Lease Term:

 

	Year One	 	 	 	 
	Months 1-3	 	 	0	 
	Months 4-6	 	 	264,083	 
	Months 7-9	 	 	396,124	 
	Months 10-12	 	 	660,206	 
	Total Year One	 	 	1,320,413	 
	 	 	 	 	 
	Year Two	 	 	2,720,051	 
	Year Three	 	 	2,801,652	 
	Year Four	 	 	2,885,702	 
	Year Five	 	 	2,972,273	 
	Year Six	 	 	3,061,441	 
	Year Seven	 	 	3,153,284	 
	Year Eight	 	 	3,247,883	 
	Year Nine	 	 	3,345,319	 
	Year Ten	 	 	3,445,679	 
	Year Eleven	 	 	3,549,049	 
	Year Twelve	 	 	3,655,521	 
	Year Thirteen	 	 	3,765,186	 
	Year Fourteen	 	 	3,878,142	 
	Year Fifteen	 	 	3,994,486	 

 

    	 	C-1	 

     

    

 

EXHIBIT D

 

ACCEPTANCE
OF PREMISES MEMORANDUM

 

This ACCEPTANCE
OF PREMISES MEMORANDUM (“Memorandum”) is entered into on ___________, 2010, between Prevarian Midland, LP, a Texas limited
partnership (“Landlord”), and __________________________, a Texas limited partnership. (“Tenant”).

 

RECITALS

 

WHEREAS, Landlord and Tenant
entered into that certain Lease dated __________, 2010 (the “Lease”). All capitalized terms used but not otherwise defined
herein shall have the meanings set forth in the Lease.

 

WHEREAS, Landlord and Tenant wish to confirm
certain matters relating to the Lease and the work performed by Landlord at the Leased Property.

 

AGREEMENT

 

1. Commencement
Date. Landlord and Tenant certify that the Commencement Date under the Lease is _______________, 20_, and the Lease Term is
scheduled to expire on _______________, 20_. Landlord and Tenant have prepared the Minimum Rent Schedule attached hereto, which
shall hereafter constitute Exhibit C to the Lease.

 

2. Acceptance
of Premises. To Tenant’s knowledge, Landlord has completed all work required to be completed by Landlord under the Lease with
the exception of the items listed on the Punch List dated _____________ (a copy of which is attached to this Memorandum).

 

3. Entire
Agreement; No Amendment. The Lease constitutes the entire agreement between Landlord and Tenant. The Lease has not been amended
and is in full force and effect. This Memorandum supplements but does not amend the Lease.

 

4. No
Default. Offset. Etc. Tenant has no knowledge of a default under the Lease or an event which, with the passage of time or notice
(or both), would constitute a default by Landlord under the Lease. Tenant has no present set-offs, recoupments, estoppels, claims,
or counterclaims against Landlord, and to Tenant’s knowledge Tenant is not in default under the Lease.

 

5. Reliance.
Tenant agrees that this Memorandum may be relied upon by Landlord, Landlord’s partners and prospective purchasers, and _________________
(“Landlord’s Lender”), and each of their respective successors and assigns.

 

[Signature page follows.]

 

    	 	D-1	 

     

    

 

EXECUTED as of the date set forth above.

 

	 	LANDLORD:
	 	 
	 	 
	 	a Texas limited partnership
	 	 	 	 
	 	By:	 
	 	 	a Texas __________________________________,
	 	 	its general partner
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 
	 	TENANT:
	 	 
	 	CTRH, LLC
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	D-2	 

     

    

 

EXHIBIT E

 

PERMITS AND PERSONAL PROPERTY AND
FIXTURES

 

Tenant is solely responsible
for all fixed and moveable medical equipment and non-medical fixtures, furnishings, and equipment within the Leased Property. Such
items that are Tenant’s responsibility shall be financed, specified, acquired, delivered, and installed by Tenant and/or Tenant
forces with delivery and installation assistance and coordination from the Landlord’s. General Contractor.

 

These Tenant items are further clarified by and include,
but are not limited to, the following: 

		·	Outdoor
furniture, trashcans, ashtrays, etc. and other specialty items

		·	Voice,
data and nurse call systems (provided, however, Landlord shall be responsible for the back boxes and conduit drops (no wiring)
for such systems)

		·	Patient
Room Furniture - patient bed, over the bed stand, nightstand, side chair and miscellaneous items, TV and wall mount, and other
equipment related to patient care

		·	Nurse’s
Station - chairs, patient charting system, crash cart, and miscellaneous items

		·	Nourishment
Station — icemaker, refrigerator, microwave and coffee maker

		·	Procedure,
examination and emergency room — moveable medical equipment, exam lights, and other incidental equipment related to the
use of the rooms

		·	Pharmacy
— cabinets, shelving, refrigerator, desk and chairs, carts and miscellaneous items, laminar flow hood, and other equipment
related to preparing and dispensing pharmaceuticals (provided, however, Landlord shall be responsible for constructing the pharmacy
space in a manner which complies with USP 797 standards)

		·	Office
Furniture - desks, chairs, side chairs, filing cabinets, bookshelves, tables and chairs, fax machine, copier, computers, printers,
and miscellaneous items

		·	Storage
Room — cabinets, shelves and carts

		·	Miscellaneous
items such as patient, staff, and visitor furniture, portable light fixtures, telephones and all related equipment, fax machines,
computers, printers, elapsed time clocks, wastebaskets, and wall clocks

		·	Medical
gas bulk storage tanks and any proprietary manifolds

		·	Laundry
equipment, microwaves, ice machines, refrigerators, stoves, ovens, kitchen equipment and utensils, crash carts, scales, stands,
film view boxes, digital imaging printers and storage equipment, PACS systems, hampers, moveable shelving systems, artwork and
other furnishings, office partition systems, exam tables, chairs, and stools, medical/surgical instruments and trays, warming
cabinets, tourniquets, microscopes, anesthesia equipment, ventilators, IV stands, sterilizers, and all other fixed and moveable
medical and non-medical equipment

		·	Exterior
and interior signage (provided, however, Landlord shall be responsible for the back boxes (no wiring) and support for such signage)

 

    	 	E-1	 

     

    

 

EXHIBIT F

 

CORPORATE GUARANTY

 

In
consideration of and as an inducement for the granting, execution and delivery of that certain Lease, dated as of September 17,
2010 (together with any amendments thereto, hereinafter called “Lease”),
by Prevarian Hospital Partners, LP, a Texas limited partnership, the Landlord therein named (whether one or more, collectively
hereinafter called “Landlord”), to CTRH, LLC, a Texas limited liability company, the Tenant therein named (hereinafter
called “Tenant”), with respect to that certain parcel of real property located in Austin, Travis County, Texas,
which is more fully described on Exhibit A attached hereto, and in further consideration of the sum of One Dollar ($1.00) and other
good and valuable consideration paid by Landlord to the undersigned,. REHABCARE GROUP, INC., a Delaware corporation (hereinafter
called “Guarantor”), Guarantor, intending to be legally bound, hereby irrevocably guarantees to Landlord (i) the
full and prompt payment when due (whether at stated maturity, by acceleration, or otherwise) of eighty percent (80%) of the Minimum
Rent and Additional Charges and any and all other sums and charges payable by Tenant under the Lease, and (ii) the full, faithful
and prompt performance and observance of all the covenants, terms, conditions, and agreements contained in the Lease which are
to be performed and observed by Tenant (all payment and performance obligations referred to in clauses (i) and (ii) being referred
to herein, collectively, as the “Obligations”); and Guarantor does hereby become primary obligor, and not only
surety to Landlord, for and with respect eighty percent (80%) of the Obligations. Terms used herein with their initial letters
capitalized which have been specifically defined in the Lease shall have the same meaning herein as in the Lease unless such terms
are otherwise defined in this Guaranty.

 

Guarantor
covenants and warrants that RehabCare Hospital Holdings, LLC, an Initial Member of Tenant, is a wholly owned subsidiary of RehabCare
Group, Inc.

 

This Guaranty
is an absolute, irrevocable and unconditional guaranty of payment (and not of collection) up to, but not exceeding eighty percent
(80%) of any outstanding liability of Tenant and performance of Tenant under the Lease. Guarantor’s liability hereunder is direct
and is independent of the Obligations, and may be enforced without Landlord being required to resort to any other right, remedy
or security and this Guaranty shall be enforceable against Guarantor without the necessity for any suit or proceedings on Landlord’s
part of any kind or nature whatsoever against Tenant or the joiner of Tenant in any suit or proceeding, and without the necessity
of any notice of non-payment, non-performance or non-observance of any of the Obligations by Tenant or of any notice of acceptance
of this Guaranty or of Landlord’s intention to act in reliance hereon or of any other notice or demand to which Guarantor might
otherwise be entitled, all of which Guarantor hereby expressly waives; and Guarantor hereby expressly agrees that the validity
of this Guaranty and the obligations of Guarantor hereunder shall in nowise be terminated, affected or impaired by reason of the
assertion or the failure to assert by Landlord against Tenant, of any of the rights or remedies reserved to Landlord pursuant to
the provisions of the Lease.

 

This Guaranty shall be a continuing Guaranty, and (whether or
not Guarantor shall have notice or knowledge of any of the following) the liability and obligations of Guarantor hereunder shall
be absolute and unconditional and shall remain in full force and effect without regard to,

 

    	 	F-1	 

     

    

 

shall
be absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, discharged
or in any way impaired by (a) any exercise or non-exercise of any right, power, remedy or privilege under or in respect of the
Lease or this Guaranty or any waiver, consent or approval by Landlord with respect to any of the covenants, terms, conditions or
agreements contained in the Lease or any indulgences, forbearances or extensions of time for performance or observance allowed
to Tenant from time to time and for any length of time; (b) any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or similar proceeding relating to Tenant, or its properties; (c) any limitation on the liability or obligation
of Tenant under the Lease or its estate in bankruptcy or of any remedy for the enforcement thereof, resulting from the operation
of any present or future provision of the federal or any state bankruptcy law or any other statute or from the decision of any
court; (d) any termination of the Lease prior to the expiration of its Term (except that Guarantor shall not be liable for amounts
that would have otherwise accrued under the Lease after proper termination of the Lease and payment of any and all amounts due
to Landlord and Facility Mortgagee in connection with or related to such termination); and (e) any security provided for the Obligations;
and (f) any sale, assignment, transfer or conveyance (A) by Landlord of all or any portion of the Leased Property (as such term
is defined in the Lease) or of Landlord’s interest in the Lease, or (B) of any ownership interest in the Landlord.

 

All of
Landlord’s rights and remedies under the Lease and under this Guaranty are intended to be distinct, separate and cumulative and
no such right or remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others or of any
rights or remedies provided by law. Except as may otherwise be set forth in the Lease, no termination of the Lease or taking or
recovering of the premises demised thereby shall deprive Landlord of any of its rights and remedies against Guarantor under this
Guaranty. This Guaranty shall apply to the Obligations of Tenant under the Lease as in effect on the date hereof as well as to
the Obligations of Tenant under the Lease as it may be extended, renewed, amended, modified or supplemented.

 

The Guarantor
hereby waives any requirement that the Landlord protect, secure, perfect or insure any security interest or lien or any property
subject thereto or exhaust any right or take any action against any person or entity or any collateral (including any rights relating
to marshaling of assets).

 

The Guarantor guarantees that the Obligations will be paid and
performed strictly in accordance with the terms of the Lease, regardless of the value, genuineness, validity, regularity or enforceability
of the Obligations, and of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms
or the rights of the Landlord with respect thereto. The liability and obligations of the Guarantor under this Guaranty shall be
absolute and unconditional, not subject to any reduction, limitation, impairment, termination, defense, offset, counterclaim or
recoupment whatsoever (all of which are hereby expressly waived by the Guarantor) whether by reason of any claim of any character
whatsoever, including, without limitation, any claim of waiver, release, surrender, alteration or compromise, or by reason of any
liability at any time to the Guarantor or otherwise, whether based upon any obligations or any other agreements or otherwise, howsoever
arising, whether out of action or inaction or otherwise and whether resulting from default, willful misconduct of Tenant, negligence
or otherwise, and without limiting the foregoing irrespective of (and whether or not Guarantor shall have notice or

 

    	 	F-2	 

     

    

 

 

knowledge of): (a) any lack of validity
or enforceability of the Lease or of any agreement or instrument relating thereto; (b) any change in the time, manner or place
of payment or performance of, or in any other term in respect of, all or any of the Obligations, or any other amendment or waiver
of or consent to any departure from the Lease or any other agreement relating to any Obligations; (c) any increase in, addition
to, exchange or release of, or non-perfection of any lien on or security interest in, any collateral or any release or amendment
or waiver of or consent to any departure from or failure to enforce any other guarantee, for all or any of the Obligations; (d)
any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Tenant or the Guarantor;
(e) the absence of any action on the part of the Landlord to obtain payment for the Obligations from the Tenant; (f) any insolvency,
bankruptcy, reorganization or dissolution, or any proceeding of the Tenant or the Guarantor, including, without limitation, rejection
of the guaranteed Obligations in such bankruptcy; (g) the absence of notice or any delay in any action to enforce any Obligations
or to exercise any right or remedy against the Guarantor or the Tenant, whether hereunder, under any Obligations or under any agreement
or any indulgence, compromise or extension granted; or (h) the termination or cessation of a corporate relationship between Guarantor
and Tenant.

 

Guarantor further agrees
that, to the extent that the Tenant or the Guarantor makes a payment or payments to the Landlord, which payment or payments or
any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid
to the Tenant or the Guarantor or their respective estate, trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then to the extent of such payment or repayment, this Guaranty and the advances
or part thereof which have been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and
effect as of the date such initial payment, reduction or satisfaction occurred. The provisions of this paragraph shall survive
the payment and performance of the Obligations and the termination of this Guaranty.

 

Until such time as
all the Obligations have been fully and indefeasibly paid to Landlord and performed in full, Guarantor shall have no rights (direct
or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from any person
or entity (including, without limitation, the Tenant) for any payments made by the Guarantor hereunder, and Guarantor hereby waives
and releases absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other
rights of payment or recovery which it may now have or hereafter acquire. If any amount shall be paid to the Guarantor in violation
of the preceding sentence and the Obligations shall not have been paid in full, such amount shall be deemed to have been paid to
the Guarantor for the benefit of, and held in trust for the benefit of, the Landlord and shall forthwith be paid to the Landlord
to be credited and applied upon the Obligations, whether matured or unmatured, in accordance with the terms of the Lease. The Guarantor
acknowledges that it will derive substantial direct and indirect benefit from the granting, execution and delivery of the Lease
by the Landlord and that the waiver set forth in this paragraph is knowingly made in contemplation of such benefits. The provisions
of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Guarantor represents
and warrants to Landlord that (a) the execution and delivery of this Guaranty has been duly authorized by the appropriate officers
of Guarantor and does not

 

    	 	F-3	 

     

    

 

contravene any law, or any contractual
or legal restriction, applicable to it, (b) no authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for its execution, delivery and performance of this Guaranty, (c) there are
no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived, (d) Guarantor will, directly
or indirectly, benefit from the transaction which is the subject of the Lease, and (e) neither the execution, delivery or performance
of this Guaranty, nor compliance with the terms and provisions hereof, conflicts or will conflict with or results or result in
a default under or a breach of any of the terms, conditions or provisions of the Certificate of Incorporation or the Bylaws of
the Guarantor or of any contract to which the Guarantor is a party or by which it is bound.

 

This Guaranty shall
be legally binding upon Guarantor and its successors and assigns and shall inure to the benefit of Landlord and Facility Mortgagee
(as such term is defined in the Lease) and each of their respective successors and assigns. Reference herein to Landlord shall
be deemed to include Landlord and its successors and assigns. Reference herein to Tenant shall be deemed to include Tenant and
its successors and assigns. Without limiting the generality of the foregoing, the Landlord may assign or otherwise transfer (whether
as an outright assignment or transfer or as collateral) all or any portion of its rights and obligations under the Lease to any
other person or entity (any such person or entity, a “Landlord Assign”) and such Landlord Assign shall thereupon
become vested (on a non-exclusive basis, as an additional beneficiary) with all the benefits in respect thereof granted to the
Landlord herein or otherwise.

 

THIS GUARANTY SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.
GUARANTOR HEREBY SUBMITS TO PERSONAL JURISDICTION IN SAID STATE AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED
IN SAID STATE (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM) FOR THE ENFORCEMENT OF GUARANTOR’S OBLIGATIONS HEREUNDER,
AND WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAW OF ANY OTHER STATE TO OBJECT TO JURISDICTION WITHIN SUCH STATE FOR THE PURPOSES
OF SUCH ACTION, SUIT, PROCEEDING OR LITIGATION TO ENFORCE SUCH OBLIGATIONS. GUARANTOR HEREBY WAIVES AND AGREES NOT TO ASSERT,
AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, (A) THAT IT IS NOT SUBJECT TO SUCH
JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN THOSE COURTS OR THAT THIS GUARANTY
MAY NOT BE ENFORCED IN OR BY THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT THE ACTION, SUIT OR PROCEEDING
IS BROUGHT IN AN INCONVENIENT FORUM, OR (C) THAT THE VENUE OF THE ACTION, SUIT OR PROCEEDING IS IMPROPER (BUT NOTHING HEREIN SHALL
AFFECT THE RIGHT OF LANDLORD OR ANY LANDLORD ASSIGN TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM). IN THE EVENT
ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED, GUARANTOR AGREES THAT SERVICE OF PROCESS MAY BE MADE, AND PERSONAL
JURISDICTION OVER GUARANTOR OBTAINED, BY SERVICE OF A COPY OF THE SUMMONS, COMPLAINT AND 

 

    	 	F-4	 

     

    

 

OTHER PLEADINGS REQUIRED TO COMMENCE
SUCH LITIGATION UPON GUARANTOR AT GUARANTOR’S ADDRESS SET FORTH HEREIN. 

 

Without the prior written
consent thereto by Landlord and the Facility Mortgagee, Guarantor will not enter into any amendment to this Guaranty and without
such consent no such amendment will be effective in any event. Further, Guarantor shall not enter into any amendment to this Guaranty,
and no such amendment hereto shall be effective, unless prior to such amendment Landlord and Facility Mortgagee have received written
confirmation from each nationally recognized statistical rating organization (including, without limitation, S&P and Moody’s
(as such terms are defined in the Lease), if applicable) which has issued a rating of any debt issued by the Facility Mortgagee
or the Landlord which is secured by the Leased Property which are subject to the Lease that such amendment to this Guaranty will
not result in a downgrade, withdrawal or qualification of the rating then assigned to such debt. No waiver of any provision of
this Guaranty, and no consent to any departure by Guarantor herefrom, shall be effective without the prior written consent thereto
by Landlord and Facility Mortgagee, and any waiver or consent for which such written consent is given shall be effective only in
the specific instance and for the specific purpose for which given. No failure on the part of the Landlord to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right
hereunder preclude any other or further exercise thereof or the exercise of any other right. Guarantor will from time to time during
the Term (as defined in the Lease), promptly following request of Landlord or Facility Mortgagee, confirm in writing to Landlord
and to Facility Mortgagee that this Guaranty remains in full force and effect in accordance with its terms.

 

So long as the Guarantor
is a reporting company under the Securities and Exchange Act of 1934, as amended, Guarantor shall not be obligated to provide financial
information to Landlord or any Facility Mortgage. At any time when Guarantor is not a reporting company under the Securities and
Exchange Act of 1934, as amended, it will deliver to Landlord and Facility Mortgagee the following information:

 

		(a)	within ninety (90) days after the end of each fiscal year of Guarantor, a balance sheet of
                                                                                 Guarantor and its consolidated subsidiaries as at the end of such year, a statement of profits and losses of Guarantor and
                                                                                 its consolidated subsidiaries for such year, and a statement of cash flows of Guarantor, and its consolidated subsidiaries
                                                                                 for such year, setting forth in each case, in comparative form, the corresponding figures for the preceding fiscal year in
                                                                                 reasonable detail and scope and certified by independent certified public accountants of recognized national
                                                                                 standing selected by Guarantor; and

 

		(b)	within forty-five (45) days after the end of each of
the first three (3) fiscal quarters of Guarantor a balance sheet of Guarantor and its consolidated subsidiaries as at the end
of such quarter, statements of profits and losses of Guarantor and its consolidated subsidiaries for such quarter and a statement
of cash flows of Guarantor and in each case, in comparative form, the corresponding figures for the similar quarter of the preceding
year, in reasonable detail and scope, and certified to be true and complete by a financial officer of Guarantor

 

    	 	F-5	 

     

    

 

			having knowledge thereof; the foregoing financial statements
all being prepared in accordance with GAAP (except as otherwise stated therein).

 

The Guarantor shall permit the Landlord
and Facility Mortgagee and their representatives, at the expense of such person or entity, and upon reasonable prior notice to
the Guarantor, to visit the principal executive office of the Guarantor, to discuss the affairs, finances and accounts of the Guarantor
with the Guarantor’s officers, and (with the consent of the Guarantor, which consent will not be unreasonably withheld) its independent
public accountants, and (with the consent of the Guarantor, which consent will not be unreasonably withheld, conditioned or delayed)
to visit the other offices and properties of the Guarantor and each subsidiary, all at such reasonable times and as often as may
be reasonably requested in writing. Notwithstanding the prior sentence, such inspection shall be at Guarantor’s expense in the
event of an Event of Default under the Lease.

 

GUARANTOR AND LANDLORD
(BY ITS ACCEPTANCE OF THIS GUARANTY) HEREBY MUTUALLY WAIVE TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE ARISING HEREUNDER. The
provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Notwithstanding
anything to the contrary set forth in this Guaranty, in the event (1) an amendment to or modification of the Lease which increases
or extends the obligations of Guarantor is entered into by a Tenant without the consent of Guarantor, and (2) at the time of such
amendment to or modification of the Lease, the Tenant is not an affiliate of Guarantor, then any such amendment to or modification
of the Lease shall be deemed to be a “Non-Approved Lease Amendment.” In the event of a Non-Approved
Lease Amendment (a) this Guaranty and the Guarantor’s obligations hereunder shall continue in full force and effect with
respect to the Lease (as modified by any amendments or modifications which are not Non-Approved Lease Amendments) as if no such
Non-Approved Lease Amendment had occurred, (b) Guarantor shall not have, and not be deemed to have, guaranteed any additional
obligations which are specifically included in such Non-Approved Lease Amendment, and (c) in no event shall Guarantor be relieved
of any of its obligations hereunder with respect to Tenant’s obligations under the Lease which existed without taking into
account such Non-Approved Lease Amendment. As used in this paragraph and in the following paragraph, an affiliate of Guarantor
shall mean a person or entity controlling, controlled by or under common control with Guarantor. 

 

In
the event that the Lease is assigned, or all or a portion of the premises subject to the Lease are subleased, to a party (a “Non-Affiliate”)
that is not an affiliate of Guarantor, the Landlord agrees (by its acceptance of this Guaranty) to deliver to the Guarantor copies
of all notices of non-payment, non-performance or non-observance that the Landlord delivers to such Non-Affiliate. 

 

All notices and other
communications provided for hereunder shall be in writing (including telecopier, telegraphic, telex or cable communication) and
mailed, telecopied, telegraphed, telexed, cabled or delivered to it, if to the Guarantor, at:

 

    	 	F-6	 

     

    

 

RehabCare Group, Inc.

Attn: General Counsel

7733 Forsyth Boulevard

St. Louis, MO 63105

Telephone: (314) 659-2123

Telecopy: (866) 245-0137

 

With a copy to:

 

Thompson Coburn LLP

Attn: James E. Dillon

One US Bank Plaza

St. Louis Missouri 63101

Telephone: 314.552.6330

Telecopy: 314.552.7330

 

and if to Landlord or any successor thereof
or Landlord Assign at its address as may be designated by such party in a written notice to the other party. All such notices and
other communications shall, when mailed, telecopied, telegraphed, telexed or cabled, be effective when deposited in the mails,
telecopied, delivered to the telegraph company, confirmed by telex answerback or delivered to the cable company, respectively.

 

The Guarantor agrees
that it shall not institute against, or join any other person or entity in instituting against, any Landlord Assign or any person
or entity which is or was a creditor of or holder of any certificate or instrument issued by any Landlord Assign any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or
similar law for one (1) year and one (1) day after the latest maturing commercial paper note issued by such Landlord Assign or
any such creditor of or holder of a certificate or instrument issued by such Landlord Assign is paid in full. Without prejudice
to the survival of any other agreement of the Guarantor hereunder, the provisions of this paragraph shall survive the payment and
performance of the Obligations and the termination of this Guaranty.

 

Except for provisions
of this Guaranty which by their terms survive the termination hereof, this Guaranty shall terminate after all of the following
shall have occurred: (i) any Minimum Rent, all Additional Charges and all other sums and charges payable by the Tenant under the
Lease shall have been indefeasibly paid in full in cash; and (ii) all other Obligations of the Tenant under the Lease shall have
been performed in accordance with the terms and provisions of the Lease.

 

For a period often
(10) years following the Commencement Date of the Lease, Guarantor agrees to grant to Prevarian Hospital Partners, LP (“Prevarian”)
the opportunity to submit proposals for participation in the construction or development of any design build facilities to be constructed,
developed or operated by Guarantor within Travis County, Texas. For the purposes hereof, and without limiting the generality of
the foregoing, Guarantor shall provide Prevarian written notice of any such design built opportunity, including any appropriate
direction to allow Landlord to participate in any bidding process or submission of proposals regarding such

 

    	 	F-7	 

     

    

 

projects. In the event of any termination
of the Lease by reason of Tenant’s default, Guarantor agrees to grant Prevarian the opportunity to submit such proposals for projects
to be constructed, developed or operated by Guarantor within Travis County, Texas for a period equal to the remainder of the term
of the Lease if it had not been terminated. In the event Landlord assigns the Lease, this paragraph of this Guaranty shall nonetheless
remain in favor of Prevarian and shall not inure to the assignee of Landlord.

 

To the extent permitted
by applicable law, Guarantor hereby expressly waives the provisions of: (a) §34.02 and §34.03 of the Texas Business and
Commerce Code, and (b) Rule 31 of the Texas Rules of Civil Procedure, to the extent such laws (or any them) are applicable to this
Guaranty.

 

    	 	F-8	 

     

    

 

IN WITNESS WHEREOF,
Guarantor, intending to be legally bound hereby, has caused this Guaranty to be executed by its duly authorized officer as of _____________________,
2010.

 

	 	REHABCARE GROUP, INC., a Delaware corporation 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	F-9	 

     

    

 

EXHIBIT A — CORPORATE GUARANTY

 

Property Description

 

    	 	F-10	 

     

    

 

EXHIBIT G

 

WORK LETTER

 

ARTICLE 1.

DEFINITIONS

 

1.1       Defined
Terms. The capitalized terms listed below shall have the following meanings when used in this Work Letter (including in
the recitals above):

 

“Construction
Drawings and Specifications” means the construction level detailed and coordinated drawings and specifications for Landlord’s
Work prepared by or on behalf of the Project Architect pursuant and in compliance with Sections 3.3 and 3.7 of this Work Letter.

 

“Contract Documents”
means, collectively, this Work Letter and the Construction Drawings and Specifications.

 

“Design Documents”
means any iteration of progress drawings and specifications for Landlord’s Work prepared by or on behalf of the Project Architect
pursuant to Paragraph 3.6 of this Work Letter that are prepared prior to the preparation of the final Construction Drawings and
Specifications.

 

“Final Construction
Documents” is defined in Section 3.7 of this Work Letter.

 

“Force Majeure”
means each of the following occurrences, in each case to the extent (but only to the extent) that each such occurrence actually
delays performance by Landlord or Tenant (provided, in each case, that the party affected by Force Majeure notifies the other
party in writing within ten (10) days of the occurrence causing the delay): (i) unusual and unavoidable delay in deliveries which
cannot be reasonably anticipated, (ii) fire or other unavoidable casualty, (iii) adverse weather conditions in excess of those
which have historically been encountered, or may reasonably be expected to be encountered, at the Project site, (iv) strikes or
lockouts; (v) acts of public enemies of the state or the United States, riots, insurrection, terrorism, war, (vi) failures or
refusals to perform in accordance with their contractual obligations by suppliers or contractors for the Project, (vii) delays
caused by the actions or failures to act of governmental authorities, (viii) failure of a bonding or surety company to perform
its obligations under any bonds or insurance policies issued with respect to contractors or subcontractors for the Project, or
(ix) any other cause (other than financial) beyond the reasonable control of the party whose performance is so prevented, delayed
or stopped which reasonably justifies such delay.

 

“Landlord Representative”
shall mean Scott Walker; provided, however, that Landlord can change or replace any Landlord Representative by delivering written
notice to Tenant.

 

“Landlord’s
Work” means all labor, materials, tools, equipment, machinery, utilities, facilities and services necessary for proper
construction, execution and completion of the Project in accordance with the final Construction Drawings and Specifications prepared
in accordance with this Work Letter, but not including Tenant’s Work, or Tenant furnished and/or required fixtures, furniture or
equipment.

 

    	 	G-1	 

     

    

 

“Legal Requirements”
means all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting the Leased Property or the construction, use or alteration thereof (including zoning ordinances),
including any which may (a) require repairs, modifications or alterations of or to the Leased Property, or (b) in any way adversely
affect the use and enjoyment thereof, and all permits, licenses, authorizations and regulations relating thereto, and all covenants,
agreements, actions and encumbrances. contained in any instruments, at any time in force affecting the Leased Property.

 

“Project” means the facility
including the Land, the Improvements, and Fixtures comprising Landlord’s Work.

 

“Project Architect” means
Ascension Group Architects, LP, or other such architectural firm selected by Landlord, and approved by Tenant.

 

“Project Contractor” means
the general contractor selected by Landlord and approved by Tenant to perform Landlord’s Work.

 

“Substantial
Completion of Landlord’s Work” shall be achieved when (a) Landlord’s Work is sufficiently complete in accordance with
the Contract Documents so that Tenant can commence Tenant’s Fixture Obligations, (b) the Improvements shall not encroach upon any
property, street or right-of-way adjacent to the Leased Property, and shall not violate in any material respect the agreements
or conditions contained in any applicable Legal Requirement and the Permitted Exceptions, and shall not impair the rights of others
under any easement or right-of-way to which the Leased Property is subject, (c) Landlord, only to the extent required as part of
Landlord’s Work (defined above), delivers the Leased Property in the condition required pursuant to the Lease, including without
limitation, Section 5.2 thereof, (d) all Project systems included in Landlord’s Work are operational as designed and specified,
(e) a certificate of occupancy or temporary certificate of occupancy issued by the City of Austin for Landlord’s Work has been
obtained, (f) all governmental inspections designated or required for Landlord’s Work have been successfully completed, (g) all
final finishes required by the Contract Documents are in place (except for minor Punchlist Items which do not materially detract
from the appearance and utility of the Project for the Permitted Use), and (h) all remaining Landlord Work is reasonably estimated
to be completed within thirty (30) consecutive calendar days (or as otherwise agreed to by Tenant) following the date of Substantial
Completion of Landlord’s Work.

 

“Tenant Representative”
shall mean Tony Dickamore; provided, however, that Tenant can change or replace any Tenant Representative by delivering written
notice to Landlord.

 

1.2       Other.
Other capitalized terms used but not defined in this Work Letter shall have the meanings assigned to them in the Lease.

 

ARTICLE 2.

REPRESENTATIVES

 

2.1.       Representatives.
Tenant Representative shall perform certain services for and on behalf of Tenant during the design and construction phases
of the Project and shall receive copies

 

    	 	G-2	 

     

    

 

of all notices to which
reference is made in this Work Letter given by Landlord to Tenant and shall further make all notices from Tenant to Landlord to
which reference is made in this Work Letter. Tenant Representative shall have full authority to act on behalf of, make decisions
on behalf of and otherwise bind Tenant in connection with the Project (subject to any limitations set forth in the definition of
Tenant Representative). Landlord Representative shall perform certain services for and on behalf of Landlord during the design
and construction phases of the Project and shall receive copies of all notices to which reference is made in this Work Letter given
by Tenant to Landlord and shall further make all notices from Landlord to Tenant to which reference is made in this Work Letter.
Landlord Representative shall have full authority to act on behalf of, make decisions on behalf of and otherwise bind Landlord
in connection with the Project.

 

ARTICLE 3. 

PROJECT DESIGN AND CONSTRUCTION 

 

3.1       General.
The Project shall be designed, and Landlord’s Work shall be performed, by Landlord in substantial
accordance with (a) the Contract Documents, (b) all laws, codes, ordinances, rules and regulations of governmental authorities
having jurisdiction over the Project, Landlord’s Work and/or the Permitted Use, and (c) all covenants, conditions and restrictions
affecting or relating to the Leased Property, the Facility and/or the Project. The location, design and construction of the Project
shall not restrict the Project from being licensed by TDSHS and receiving classification as an in-patient rehabilitation facility,
as well as receiving accreditation from the Joint Commission. All (i) materials and equipment furnished under the Contract Documents
will be of good quality and new and (ii) Landlord’s Work will be performed in a good and workmanlike manner and in substantial
accordance with the requirements of the Contract Documents. Subject and pursuant to Sections 3.3, 3.6, 3.7, 3.10, and Article 8
below, and the other provisions of this Work Letter, Tenant will have input regarding the design and quality of such Project, materials
and equipment. Tenant approves Ascension Group Architects, LP as the Project Architect. Tenant shall have the right to approve
the Project Contractor and any replacements to either the Project Contractor or the Project Architect, which approval shall not
be unreasonably withheld, conditioned or delayed. 

 

3.2       Project
Schedule. Landlord, working with Tenant and the Project Architect shall use its best
efforts to design the Project in accordance with the schedule set forth in Article 8 of this Work Letter (the “Design
Schedule”). Subject to any Tenant Delays and Force
Majeure Events, Landlord shall commence Landlord’s Work within thirty (30) calendar days after: (i) completion and approval
of the final Construction Drawings and Specifications, (ii) closing on the Project financing; and (iii) receipt of all required
local governmental permits necessary to commence construction of the Improvements (the “Construction Commencement
Date”). Landlord agrees to use its best efforts to close its project financing and obtain
all required local governmental permits necessary to commence construction of the Improvements as soon as practicable such the
Design Schedule will not be delayed thereby. Dependent upon the successful completion of final Construction Drawings and Specifications
within the Design Schedule, no Tenant Delays and subject to Landlord’s discretionary right to terminate the Project Architect,
Landlord anticipates a target commencement date for construction of March 31, 2011 (the “Target Commencement Date”).

 

    	 	G-3	 

     

    

 

Landlord
shall use its best efforts to perform each phase of Landlord’s Work within the time schedule set forth on the attached Exhibit
J (the “Project Construction Schedule”) and shall use its best efforts
to achieve Substantial Completion of the Project on or before May 15, 2012 (the “Target Substantial Completion
Date”). The Project Construction Schedule and the Target Substantial Completion Date shall
each be subject to extension for Force Majeure and Tenant Change Requests. The Project Construction Schedule sets forth dates
that are critical in ensuring the timely and orderly completion of Landlord’s Work in accordance with the requirements of
the Contract Documents. 

 

Notwithstanding
anything to the contrary contained herein, in the event that Tenant has not acquired the Land by December 31, 2010 (the “Drop
Dead Acquisition Date”), then Tenant may deliver to Landlord a written notice of default
with respect to the acquisition of the Land, insisting that Landlord cure the default and acquire the Land within fifteen (15)
business days from the date of Tenant’s default notice. If Landlord fails to acquire the Land on or before the expiration
of said fifteen (15) business day period, Tenant or Landlord may terminate this Lease, in which case neither party shall have
any further obligation to one another. 

 

Notwithstanding
anything to the contrary contained herein, in the event that the Construction Commencement Date has not occurred on or before
July 31, 2011 (the “Drop Dead Commencement Date”), plus any days extended
for Force Majeure and Tenant Change Requests, then Tenant may deliver to Landlord a written notice of default with respect to
the commencement of the construction of Landlord’s Work insisting that Landlord cure the default and commence to construct
Landlord’s Work within fifteen (15) business days from the date of Tenant’s default notice. If Landlord fails to commence
construction of Landlord’s Work on or before the expiration of said fifteen (15) business day period and thereafter diligently
prosecute Landlord’s Work, subject to any Tenant Delays and Force Majeure Events, then Tenant may charge Landlord a late
delivery fee in the amount of $5,000 per day for each day after the expiration of said fifteen. (15) business day period until
the Construction Commencement Date occurs. 

 

Notwithstanding
anything to the contrary contained herein, in the event that the Substantial Completion of Landlord’s Work has not occurred
on or before November 30, 2012, subject to Force Majeure Events and Tenant Delays (the “Drop Dead Substantial
Completion Date”), then Tenant may deliver to Landlord a written notice of default with
respect to the Substantial Completion of Landlord’s Work. If Landlord fails to achieve Substantial Completion of Landlord’s
Work on or before the date which is fifteen (15) business days thereafter, subject to any Tenant Delays and Force Majeure Events,
then Tenant may charge Landlord a late delivery fee in the amount of $5,000 per day for each day after the expiration of said
fifteen (15) business day period until Substantial Completion of Landlord’s Work is achieved. If, however, Substantial Completion
of Landlord’s Work is not achieved within thirty (30) days following the expiration of said fifteen (15) business day period,
the fee, beginning on the expiration of such thirty (30) day period shall double to $10,000 per day. 

 

If at any time the
performance of Landlord’s Work has not progressed or reached the level of completion required by the Project Schedule, Tenant shall
have the right to suggest that Landlord to take corrective measures necessary to expedite the progress of the construction. Tenant’s
right to request corrective measures is without prejudice to any other right or remedy of

 

    	 	G-4	 

     

    

 

Tenant and is solely for the purpose of
attempting to ensure Landlord’s compliance with the Project Schedule.

 

3.3       Project
Design. Landlord shall cause the Project Architect to prepare, and deliver to Tenant
(and Landlord) final Construction Drawings and Specifications for the construction of Landlord’s Work. and to comply with
any applicable Permitted Exceptions, applicable City of Austin and County of Travis building codes, as applicable, and other applicable
ordinances (the “Construction Drawings and Specifications”). After the
preparation and review of progress Design Documents as set forth in Section 3.6 hereof, Landlord shall cause the Project Architect
to finalize the Construction Drawings and Specifications, which Construction Drawings and Specifications shall be subject to Tenant
input and review in accordance with Section 3.6 of this Work Letter. 

 

3.4       Project
Architect / Project Contractor. Landlord
reserves the right to terminate the Project Architect at any time during the Term of this Work Letter. Landlord’s right to terminate
the Project Architect may be exercised by Landlord at its sole discretion, for cause or not for cause. In the event that Landlord
elects to terminate the Project Architect, Landlord shall promptly engage other qualified architect(s) or architectural firm licensed
in the State of Texas to serve as the Project Architect, subject to the approval of Tenant, which approval shall not be unreasonably
withheld, conditioned or delayed. In the event that the Project Architect is terminated by Landlord, then any delays in either
the Design Schedule or the Project Schedule resulting from their termination, shall not be deemed a Tenant Delay, a Landlord Delay
or a Force Majeure Event under this Work Letter. Landlord’s contract with the Project Architect shall specify that Landlord shall
have a License (as defined in Section 7.6 of this Work Letter) to use any Design Documents or final Construction Drawings and Specifications
(and any iteration thereof) even after removal of the Project Architect from this Project, in order that Landlord’s substituted
Project Architect may move forward with the Project commencing with the Design Documents or final Construction Drawings and Specifications
developed to the date of the Project Architect’s removal from the Project. 

 

After completion of
the Construction Drawings and Specifications, Landlord shall bid the construction of the Project to such number of general contractor(s)
as it deems reasonable. The selection of the Project Contractor shall be the right of Landlord, subject to the approval of Tenant,
which approval shall not be unreasonably withheld.

 

3.5       Preliminary
Project Budget. Landlord has prepared and presented to Tenant a Preliminary Project
Budget for the Project. The Preliminary Project Budget is attached to the Lease as Exhibit I (the “Preliminary
Project Budget”) and is the target level budget for the Project desired by Tenant. Landlord and Tenant acknowledge and
agree that the Preliminary Project Budget is only a guideline and target for the Project cost, and Landlord does not guarantee
that the final price of Landlord’s Work shall be equal to or less than the Preliminary Project Budget. Section 3.7 of this
Work Letter shall set forth the development of a Final Project Budget. 

 

3.6       Review
/ Approval Procedures - Design Documents. The
parties agree that time is of the essence with respect to all deadlines and response times set forth in this Work Letter and that
the deemed approval provisions set forth herein in the event of a failure of either 

 

    	 	G-5	 

     

    

 

party
to timely respond to any request for review and comment or additional information shall be deemed approval. Landlord shall use
its best efforts to cause the Project Architect to deliver to Tenant the Design Documents and the Construction Drawings and Specifications
in accordance with the Design Schedule set forth in Article 8 of this Work Letter and as set forth in this Paragraph 3.6 and 3.7
in order to allow Tenant an opportunity to review and provide any comments thereon and cause the Project Architect to mark any
revision draft of the Design Documents and Construction Drawings and Specifications by clouding and/or other reasonable technique
to show changes made to such revision draft as compared to the previous progress draft delivered to Tenant. Tenant shall deliver
written notice of any objection to or comments on any revised progress draft of the Design Documents to Landlord within five (5)
business days of delivery of each such revision of the Design Documents to Tenant. For purposes of this Work Letter, any iteration
of a progress draft of the drawings and specifications shall be referred to herein as the “Design Documents.”
Tenant shall deliver written notice to Landlord and the Project Architect of any objection to or
comments to the Design Documents within five (5) business days of delivery of the Design Documents to Tenant. Landlord shall cause
the Project Architect to revise the Design Documents in response to Tenant’s comments, and the parties shall continue the
process described in the foregoing provisions until such time as Tenant approves or is deemed to approve the Design Documents.

 

3.7       Final
Construction Documents and Specifications. Upon completion of review and approval
of the Design Documents which have been reviewed and approved by both Tenant and Landlord, Landlord shall, within ninety (90)
business days after such approval, prepare for Tenant a final revised estimated Project Budget based on the final version of the
Final Construction Documents (the “Final Project Budget”). Within five
(5) business days after receipt of the Final Project Budget from Landlord, Tenant shall approve or reject the Final Project Budget,
which approval shall not be unreasonably withheld, conditioned or delayed. In the event that Tenant rejects the Final Project
Budget, then Landlord and Tenant shall work together in good faith to revise the Final Project Budget such that it is acceptable
to both parties; provided, however, that if no such agreement can be reached, despite the good faith efforts of both Landlord
and Tenant, Landlord shall have the right to terminate the Project within five (5) business days after receipt of Tenant’s
election to reject the Final Project Budget. In the event that Landlord elects to terminate the Project, then Landlord and Tenant
shall execute a termination of this Work Letter and the Lease as well as any other agreements executed between them with respect
to the Project. In the event Landlord terminates the Project due to failure of Landlord and Tenant to agree on the Final Project
Budget, and if the total cost per the Final Project Budget (less a reasonable amount for any costs that increase the budget due
to Tenant requests made after the date of the Preliminary Project Budget) is less than or equal to one hundred ten percent (110%)
of the total cost per the Preliminary Project Budget, Tenant shall reimburse Landlord for all of Landlord’s reasonable out
of pocket costs incurred by Landlord in connection with this Lease, the acquisition of the Land, and the contract to acquire the
Land (including any earnest money and option money lost by Landlord in connection therewith), such costs to include reasonable
attorneys fees, financing costs, and architect fees. Tenant’s failure to timely approve or reject the Final Project Budget
shall be deemed Tenant’s approval of same. If both the approved Design Documents and the Final Project Budget are approved
or deemed approved by Tenant and Landlord hereunder, then in accordance with the provisions of Article 8 of this Work Letter,
Landlord shall instruct the Project Architect to finalize Construction Documents and Specifications for the Project, based upon
the final progress Design Documents, 

 

    	 	G-6	 

     

    

 

which
drawings, documents and specifications shall be complete architectural, structural, mechanical, electrical and plumbing drawings
ready for permit submission and general construction in such form and detail as reasonably required by Landlord (the “Final
Construction Documents”). The Final Construction Documents shall not be deemed final
until any and all changes required by the local code authority have been implemented by the Project Architect and the code authority
has issued a building permit for the entire Project. 

 

3.8       Tenant’s
Liability for Construction Drawings and Budgets. Except for Tenant’s responsibilities
noted herein, Tenant’s review or approval of Design Documents and Construction Drawings and Specifications or any other documents
relating to Landlord’s Work shall create no responsibility or liability on the part of Tenant for their completeness, design, sufficiency,
or compliance with any laws, rules, orders, ordinances, directions, regulations or requirements of any federal, state, county or
municipal authorities. 

 

3.9       Permits
and Approvals. Landlord shall (i) obtain all city and county licenses, permits and
approvals (whether governmental or non-governmental), required to perform Landlord’s Work, and (ii) work together with Tenant to
assist Tenant in obtaining any approval from any applicable health or regulatory agency or other approvals that are not related
to the construction of Landlord’s Work, but required by Tenant to inhabit and operate the Project for its Permitted Use. 

 

3.10     Tenant
Change Requests. Tenant may from time to time request changes in previously approved
Design Documents or Construction Drawings and Specifications (herein, a “Tenant Change Request”),
subject to the terms and conditions of this paragraph. Each Tenant Change Request shall (a) be in writing delivered to Landlord
and (b) be subject to Landlord’s consent. Landlord shall not unreasonably withhold, condition or delay its consent to any
Tenant Change Request; provided, however, Landlord shall have no obligation to implement any Tenant Change Request which requires
the approval of any municipal authority unless and until Landlord receives such approval. Landlord shall provide written notice
to Tenant of the impact the Tenant Change Request will have on the Project Budget, if any, and Landlord and Tenant shall work
in good faith to agree on a revised Project Budget, if applicable; provided, however, if the Tenant Change Request impacts the
Project Budget and Landlord and Tenant are unable to reach an agreement, then Landlord may reject the Tenant Change Request by
written notice to Tenant. So long as the Tenant Change Request is not reasonably expected by Landlord to result in an increase
in the Project Budget, such Tenant Change Request shall be incorporated into the Final Construction Documents and performed by
Landlord. 

 

3.11     Substantial
Completion / Final Completion of Landlord’s Work. Landlord
shall provide Tenant with written notice when Landlord believes that Substantial Completion of Landlord’s Work has been
achieved, along with appropriate documentation to evidence the same. Such notice shall be accompanied by a list of items (the
“Punchlist Items”) to be completed or corrected. Promptly following delivery
of such notice of Substantial Completion of Landlord’s Work, duly authorized representatives of Landlord and Tenant shall
jointly inspect the Landlord’s Work. The Punchlist shall be subject to review and approval by Tenant following such joint
inspection. In the event that the parties shall disagree on whether any item is properly included as part of the Punchlist Items,
and the parties are unable to reach agreement thereon within five (5) business days after such joint inspection, either party
may submit such disagreement to the 

 

    	 	G-7	 

     

    

 

Project Architect for
final determination, which determination of the Project Architect shall be binding upon Landlord and Tenant. Notwithstanding anything
to the contrary set forth herein, the failure to include an item on the Punchlist does not alter the responsibility of Landlord
to complete all of Landlord’s Work in accordance with the Contract Documents. Landlord shall complete the Punchlist Items
on or before the date that is thirty (30) business days after achieving Substantial Completion of Landlord’s Work; provided,
however, that Landlord shall have such additional time as may reasonably be required with diligent efforts to complete Punchlist
Items of a seasonal nature (such as landscaping) which cannot or should not be performed until a later date, special order items,
or other materials or workmanship delayed beyond Landlord’s control. If Landlord shall not complete all required Punchlist
Items (excluding the foregoing seasonal related items, special order items, or other materials or workmanship delayed beyond Landlord’s
control, however) within such thirty (30) business day period, the date of Substantial Completion of Landlord’s Work shall
be deemed extended by the number of days of such delay, except to the extent that Tenant wrongfully interferes with Landlord in
completing such Punchlist Items and Landlord shall continue to diligently pursue the completion of Landlord’s Work to Final
Completion of the Work without material interruption. Landlord shall cause Project Architect to issue a Certificate of Final Completion
of Landlord’s Work after the completion of the Punchlist Items and such certificate date shall be the “Date of
Final Completion” hereunder.

 

3.12     Assignment
of Correction Obligations and Warranties. Following the period of twelve (12) months after Substantial Completion of Landlord’s
Work, Landlord shall assign to Tenant, on a non-exclusive basis, (a) any correction obligations or warranties provided by the Project
Contractor or any other party on Landlord’s Work (including, without limitation, Project Contractor’s obligation to timely and
diligently correct any defective or non-conforming work) and (b) all extended warranties for the components and equipment included
within Landlord’s Work. Landlord shall furthermore assist Tenant, at no cost to Landlord however, in pursuing any available remedies
against the design and/or construction professionals engaged to design and/or perform Landlord’s Work. Nothing set forth in this
Section 3.12 shall affect or limit Landlord’s obligations to correct defective or nonconforming design or work, at the expense
of Landlord, as set forth in Sections 3.11 of this Work Letter.

 

3.13     Entry
by Tenant Prior to Space Delivery. Tenant and Tenant’s agents, employees and/or representatives shall have the right to
enter onto the Project site from time to time for the purpose of inspecting the Project and performing the installations of furniture,
fixtures and equipment to prepare the Project for Tenant’s use and occupancy, provided that such entry shall not unreasonably
interfere with the completion by Landlord or its Project Contractor of Landlord’s Work at the Project. Tenant and its representatives
shall comply with all reasonable requirements of the Contractor regarding such entry by Tenant prior to Final Completion of Landlord’s
Work. In the event Tenant or any of its representative suffer any personal injury, death or property damage, due to their entry
upon the Leased Property during Landlord’s Work, Tenant agrees to release, defend, indemnify, and hold harmless the Landlord from
against any and all costs. (including reasonable attorneys fees), lawsuits, damages, claims, or losses suffered or brought against
Landlord due to such personal injury, death or property damage, excluding any costs, lawsuits, damages, claims or losses suffered
by Tenant due solely to Landlord’s negligence or willful misconduct or the negligence or willful misconduct of its agents and employees.

 

    	 	G-8	 

     

    

 

3.14      Excluded
Costs. To the extent that the following costs are not included in the Final Project Budget, such costs (collectively the
“Excluded Costs”) shall be allocated as set forth in this Section 3.14: (i) additional costs to construct, re-construct,
re-surface, widen or otherwise improve any public or private roadway abutting the Land that may be required by the City of Austin
or the County of Travis or other applicable authority in order to obtain either a building permit or a certificate of occupancy
for the Project, but only if such additional costs exceed $100,000.00 (costs less than $100,000 shall be added to the Final Project
Budget); (ii) additional costs to construct, expand the capacity of or otherwise improve any water lines, sanitary sewer lines,
lift stations, private sanitary sewer plants, off-site or regional detention facilities necessary to serve the Land and the to
be constructed Improvements, but only if such additional costs exceed $100,000.00 (costs less than $100,000 shall be added to the
Final Project Budget); and (iii) Tenant’s Work (as defined in Section 8.1 hereof). The costs of Tenant’s Work shall be borne solely
by Tenant. This Lease shall be conditioned upon an agreement from the parties regarding a mutually acceptable manner in which to
allocate items (i) and (ii) of Excluded Costs, which agreement shall not be unreasonably withheld. Landlord and Tenant anticipate
that they will be able to further define and ascertain the impact of any of the Excluded Costs during the design phase of the Project.
Landlord agrees and acknowledges that Landlord shall not approve or incur any obligations in regards to items identified as Excluded
Costs without the express written approval of Tenant, which approval will not be unreasonably withheld. Landlord further agrees
that Landlord shall provide Tenant all information, documents, or materials in regards to negotiations for any items identified
as an Excluded Cost and shall provide Tenant the opportunity to materially participate in any negotiations in regards to any Excluded
Cost item. Tenant and Landlord agree that items identified as Excluded Costs which are required after construction commences will
be submitted to Tenant for inclusion into the Final Project Budget, which approval shall not be unreasonably withheld.

 

3.15     Signage.
Tenant is solely responsible for the design, construction and erection of its owns signage, provided, that any signage must
comply with all requirements of the City of Austin and any other governmental authority.

 

3.16     Landlord
Duty to Deliver. Landlord shall deliver the Leased Property to Tenant pursuant to the requirements noted in Article 5 of
the Lease. In addition, promptly following Substantial Completion of Landlord’s Work, Landlord shall deliver to Tenant binders
containing complete sets of all manufacturer’s catalogs, instructions and other similar data covering all mechanical and manually
operated devices furnished and/or installed as part of Landlord’s Work, and (2) provide Tenant’s property management and operations
personnel with the opportunity to be trained in the operation and maintenance of building systems and controls installed as part
of Landlord’s Work.

 

ARTICLE 4.

TENANT OVERSIGHT

 

4.1.       Tenant
Oversight. Landlord hereby acknowledges and agrees that, notwithstanding anything to the contrary: (1) Landlord
shall make the site of Landlord’s Work available at reasonable times for inspection by Tenant Representative; (2)
Landlord shall cause the Project Architect and/or the Project Contractor to promptly furnish Tenant with any information,
documents and/or materials relating to the Project that Tenant may reasonably

 

    	 	G-9	 

     

    

 

request and respond
in a timely manner to all reasonable inquiries by Tenant Representative; and (3) Landlord shall provide that a monthly project
update meeting be held at the project site at which the Project Architect, Project Contractor, Landlord Representative and Tenant
Representative are required to be present (provided that Tenant Representative may elect to be present via telephone); (4) Tenant
shall have the right to actively participate in the decision making process in regards to any and all material decisions effecting
the design and construction of the Leased Property; and (5) Landlord shall provide Tenant with reasonable prior notice of, and
allow Tenant or its representatives a reasonable opportunity to attend and participate in, all project meetings, in addition to
the required monthly meetings.

 

ARTICLE 5.

INDEMNIFICATION

 

To the fullest extent
permitted by law, Landlord shall defend, indemnify and hold harmless Tenant, Tenant’s representative(s), their respective
subsidiary, affiliated and associated companies, and the directors, officers, shareholders, employees and agents of any of them,
and their respective agents and servants (collectively, “Indemnified Parties” and singly, an “Indemnified
Party”), and each of them, of and from any and all claims, demands, causes of action, damages, costs, expenses, losses
or liabilities, in law or in equity, of every kind and nature whatsoever (“Claims”), including without limitation,
costs of defense, settlement and attorneys’ fees, attributable to: (a) injury to or death of any person and injury to or
destruction of or loss of use of property in whole or in part which occurs prior to Substantial Completion of Landlord’s
Work, which are caused by the acts or omissions of Landlord, the Project Contractor, its subcontractor, or anyone directly or
indirectly employed by them or anyone for whose acts they may be liable, except to the extent such death, injury or loss is caused
by an Indemnified Party; (b) injury to or death of any person and injury to or destruction of or loss of use of property in whole
or in part, which occurs on or prior to Substantial Completion of Landlord’s Work, and arising out of or resulting from
or related to the negligent performance of Landlord’s Work by Landlord, the Project Contractor, its subcontractor, or anyone
directly or indirectly employed by them or anyone for whose acts they may be liable, except to the extent such death, injury or
loss is caused by an Indemnified Party; (c) any and all penalties imposed on or alleged against any Indemnified Party or Landlord’s
Work on account of the violation of any law, order, or regulation by Landlord, the Project Contractor or subcontractor of Project
Contractor, which penalty is assessed on or before the first anniversary of Substantial Completion of Landlord’s Work, except
to the extent any such penalty is caused by an Indemnified Party; and/or (d) any and all Claims arising out of or resulting from
alleged infringement by the Project design or any means and methods used by Landlord of copyrights, patents or other intellectual
property rights held by others, and which claim is asserted on or before the first anniversary of Substantial Completion of Landlord’s
Work.

 

ARTICLE 6.

REQUIRED INSURANCE

 

Landlord shall carry
and maintain at all times during the design and construction of the Project, and shall cause the Project Architect and the Project
Contractor to maintain at all times during the design and construction of the Project, and for such longer periods as may be required
below, the following types of insurance and minimum coverage amounts written by insurers

 

    	 	G-10	 

     

    

 

rated by A.M. Best & Co., with a minimum rating of (or equivalent
to) “A,” a financial size category of not less than “VIII,” and are qualified to do business in the State of
Texas:

 

6.1       Landlord’s
Required Insurance.

 

(a)        Worker’s
compensation insurance, as required by law, in statutory amounts;

 

(b)        Motor
vehicle insurance covering owned, non-owned and hired vehicles for personal injury in the amount of $1,000,000.00 combined single
limit for bodily injury and for property damage;

 

(c)     
  Commercial general liability coverage for bodily injury, personal injury and property damage in the amount of $1,000,000.00
per occurrence and $2,000,000.00 aggregate limit;

 

(d)        Property
insurance written on a builder’s risk “all-risk” or equivalent policy form in the total value for the entire
Project at the site on a replacement cost basis without optional deductibles; and

 

(e)        Umbrella
Liability Coverage over Commercial General Liability and Motor Vehicle Insurance in the amount of $3,000,000.00.

 

6.2       Project
Architect’s Required Insurance.

 

(a)        Commercial
general liability coverage for bodily injury, personal injury and property damage in the amount of $1,000,000.00 per occurrence
and $2,000,000.00 aggregate limit; and

 

(b)        Professional
liability coverage for all professional services relating to the Project in the minimum amount of $2,000,000.00.

 

6.3       Project
Contractor’s Required Insurance. 

 

(a)        Workers’
compensation insurance in statutory amounts and employer’s liability insurance in the amount of $1,000,000.00;

 

(b)        Motor
vehicle insurance covering owned, non-owned and hired vehicles for personal injury in the amount of $1,000,000.00 combined single
limit for bodily injury and for property damage;

 

(c)        Commercial
general liability coverage for bodily injury, personal injury and property damage in the amount of $1,000,000.00 per occurrence
and $2,000,000.00 aggregate limit; and

 

(d)        Umbrella
Liability Coverage over Commercial General Liability and Motor Vehicle Insurance in the amount of $5,000.000.00.

 

    	 	G-11	 

     

    

 

6.4       Other
Requirements Regarding Required Insurance. The liability policies required by this Article 6 shall include a contractual
liability endorsement covering the indemnification obligations under the Contract Documents. The “other insurance” clause
shall be deleted from each policy of insurance carried by Landlord, Project Architect and Project Contractor so as to make it clear
that the coverage of each such party’s policy is primary and any coverage under any policy or policies of insurance held by Tenant
or any other additional insured is secondary. All of the insurance required shall be written on an occurrence basis, except that
professional liability and umbrella liability can be written on a claims made basis provided that such coverages are maintained
for six years following final payment. Tenant, any lender(s) of Tenant and such other persons designated by Tenant from time to
time shall be named as additional insureds on all insurance policies required hereunder except workers’ compensation and professional
liability policies. Landlord shall, upon demand, provide Tenant with proof that the insurance requirements have been met, which
shall be in the form of certificates of insurance (or, at Tenant’s request, insurance policies) reasonably acceptable to Tenant.
Renewal certificates for all policies that expire during the term of the Contract Documents must also be provided at least thirty
(30) days prior to each policy’s respective expiration. Nothing in this clause, or any failure of Landlord to secure the above
required coverages or otherwise comply with the insurance provisions of the Contract Documents, shall modify, limit or expand Landlord’s
liability or other obligations under the Contract Documents.

 

ARTICLE 7.

MISCELLANEOUS 

 

7.1       Permits,
Fees and Compliance with Law. Landlord shall secure all permits, licenses and inspections necessary for the execution and
completion of Landlord’s Work. Landlord shall comply in all material respects with the terms of all such permits and licenses and
with all federal, state and municipal laws, statutes, ordinances, building codes, rules and regulations applicable to Landlord’s
Work.

 

7.2       As-Built
Documents. Landlord shall provide to Tenant at
the conclusion of Landlord’s Work As-Built drawings of the Project. 

 

7.3       Construction
Procedures. As between Landlord and Tenant, Landlord shall be solely responsible for and have control over construction
means, methods, techniques, sequences and procedures, and for coordinating all portions of Landlord’s Work, in all cases subject
to oversight by Tenant as provided herein.

 

7.4       Liens.
In the event that any direct or indirect contractor, subcontractor, supplier or any other party providing labor or materials
related to Landlord’s Work establishes a lien against the Project and/or the Project site, Landlord shall, within ninety (90) days
of receipt of notice from Tenant regarding such lien, cause the lien to be discharged (either by obtaining and recording a lien
discharge bond from a surety and in a form acceptable to Tenant or otherwise) at no cost to Tenant. Landlord agrees to indemnify
and hold harmless Tenant from all costs and expenses incurred by Tenant in connection with such liens.

 

7.5       Landlord’s
Duty to Correct Defective Work. Landlord shall promptly correct defective or nonconforming design or work after written
request from Tenant delivered to

 

    	 	G-12	 

     

    

 

Landlord no later than twelve (12) months after the date of Substantial Completion. The obligation in the
preceding sentence shall include the cost of correcting destroyed or damaged property caused by defective or nonconforming design
or work. Nothing contained in this paragraph shall be construed to establish a period of limitation with respect to obligations
which Landlord may have under the Lease other than the specific obligation of Landlord to promptly correct defective or nonconforming
design or Work contained in this Paragraph. After such twelve (12) month warranty period, Landlord agrees to use commercially
reasonable efforts to pursue any claim for defective or nonconforming design or work.

 

7.6         License
for Design Documents. Tenant is hereby granted an irrevocable, duty-free license (the “License”) to obtain
and retain copies, including reproducible copies and copies of computer disks or other computer memory storage devices (e.g.,
CADD files), of all Design Documents, Construction Drawings and Specifications and other design documents prepared by Project
Architect for information and reference in connection with the construction, reconstruction, renovation, repair, maintenance,
marketing, use and occupancy of the Project. The License shall be transferable to any Permitted Transferee of Tenant under Article
20 of the Lease. At or prior to Substantial Completion of the Project, Landlord shall cause the Project Architect and any other
party providing design services to deliver instruments in form and substance satisfactory to Tenant confirming the grant to Tenant
of the License. The Project Architect shall not be responsible for changes made in the final Contract Documents or other documents
prepared by the Project Architect by anyone other than the Project Architect or its consultants, or for Tenant’s use of the final
Contract Documents or other documents prepared by the Project Architect without the participation of the Project Architect. Project
Architect’s contract or agreement with Landlord shall specifically contemplate the granting to both Tenant and Landlord of the
License set forth above in connection with the Project.

 

7.7        Scope
of Project Architect’s Work. The Project Architect shall, with Landlord’s and Tenant’s cooperation and assistance as
set forth in this Work Letter, furnish all services necessary for the preparation of the Design Documents and the Construction
Drawings and Specifications relating to Landlord’s Work and secure such approvals as may, by reason of the nature of the Improvements
required to be constructed by Landlord hereunder, be required from any governmental, authority having jurisdiction.

 

7.8        Capitalized
Terms. All capitalized terms used, but not defined herein, shall have the meaning given them in the Lease to which this
Work Letter is attached as Exhibit G.

 

ARTICLE 8.

SCHEDULE 

 

8.1        Design
Development Schedule. Pursuant to the schedule set forth in this Article 8, all plans and drawings for the Improvements
shall be prepared as follows:

 

(a)        To
the extent that Tenant has not already done so, Tenant shall furnish to Landlord’s Architect, Tenant’s space, equipment, and other
special requirements known as “Space Program”, as designated by Tenant promptly following Tenant’s execution
of the Lease. During such time or such other time as is mutually agreed upon by Landlord and Tenant, Tenant will meet with Landlord’s
Architect and Landlord’s Representative to create Space Program

 

    	 	G-13 	 

     

    

 

design. The Project Architect shall prepare
the Space Program design within twenty (20) business days after receipt of the Tenant’s requirements from Tenant and submit the
same to Landlord and Tenant for review. Tenant shall make any objections, comments or revisions to said written Space Program design
within ten (10) business days after its submission to Tenant. Failure to make any objections, comments or revisions within said
ten (10) business day period shall be deemed Tenant’s approval of the written Space Program design delivered by the Project Architect.

 

(b)
       Landlord shall cause the Project Architect to prepare from the approved Space Program
draft Design Documents sufficient to convey the architectural design and intended use of the to be constructed Improvements within
fifteen (15) business days after finalization of the Tenant Space Program in 8.1(a) above. Tenant and. Landlord shall review and
provide comments to the Design Documents within five (5) business days of receipt from the Project Architect and/or Landlord’s
Representative. Tenant and Landlord may, at either of their request, meet with the Project Architect to review the Design Documents
and provide informal input regarding such Design Document’s impact upon the Preliminary Project Budget. The Design Documents
shall be revised until such time as they are approved or deemed approved by both Landlord and Tenant.

 

(c)        Tenant
shall cause any and all of Tenant’s special consultants to consult with the Project Architect and engineers within ten (10)
business days after the date on which the Design Documents are approved by Landlord and Tenant in order to prepare Tenant’s
complete architectural, structural, electrical, mechanical and plumbing drawings necessary for any and all portions of the completed
Project.

 

Unless
otherwise agreed, it shall be Tenant’s sole responsibility and work to contract with independent companies or consultants to provide
interior design services and to provide and install any and all internal data, telecommunications (television, wireless, satellite,
etc.) and/or security systems or other special utility facilities for the Leased Property, all furniture, Trade Fixtures and equipment
related to the operation of the Project for its Permitted Use (including, but not limited to medical, food service, exercise and
rehabilitation equipment, cubicle partitions and/or curtains, window blinds and the like), exterior and interior identification
or directional signage or graphics relating to the Project’s Permitted Use, and cleaning equipment, supplies or chemicals related
to any pool, spa and/or sauna to be constructed as part of Landlord’s Work (collectively “Tenant’s Work”). To
the extent that any portion of Tenant’s Work requires specific design or construction features in Landlord’s Work or is to be included
as a part of Landlord’s Work, then Tenant shall provide such information to Landlord and the Project Architect for incorporation
into the Design Documents during the review process. described in subsection (b) above.

 

The Construction
Drawings and Specifications shall be in such form and in such detail as may be reasonably required by Landlord and provided to
Tenant within thirty (30) business days from receipt of finally approved Design Documents and Tenant’s consultant work (as noted
in the paragraph above). The Construction Drawings and Specifications shall be reviewed by Tenant and Tenant shall provide any
objections and/or comments thereto within five (5) business days of receipt. If Tenant disapproves of any portion of the Construction
Drawings and Specifications, Tenant shall advise Landlord in writing of such necessary revisions and the

 

    	 	G-14 	 

     

    

 

reasons therefore.
Tenant’s failure, if any, to respond with any comments to the submitted Construction Drawings and Specifications within said five
(5) business day period shall constitute Tenant’s approval of same. With respect to corrections to the Construction Drawings and
Specifications that do not constitute a Tenant Change Request as defined in Paragraph 3.10 hereof, or a Landlord required change
to the Construction Drawings and Specifications, Landlord shall then cause the Project Architect to revise the Construction Drawings
and Specifications accordingly within ten (10) business days and then to resubmit the revised Construction Drawings and Specifications
to Landlord, Tenant and, if instructed to do so, to Tenant’s special consultants for their review and comment. Tenant, its consultants
(if applicable) and Landlord, shall review such revised Construction Drawings and Specifications and provide any objections, corrections
or comments to same within five (5) business days after revised Construction Drawings and Specifications are delivered to them.

 

8.2        Changes
in the Final Construction Documents and Tenant Required Changes. Subject to the limitations set forth in Section 8.3 below,
if a Tenant Change Request requires any changes to the Construction Drawings and Specifications (or any previously approved revision
thereto or supplement thereof), then the increased costs (if any) of Landlord’s Work caused by such changes shall be borne
in the manner set forth in Section 3.10 above. Any and all increased costs shall include but not be limited to all architectural,
engineering and consulting design fees and expenses in connection therewith in addition to any governmental fees, which may be
additionally imposed and costs associated with delays in construction of the Improvements and Landlord’s Work caused by
such change(s), the incremental additional hard construction costs associated with the performance and implementation of such
change into Landlord’s Work, and the incremental additional soft costs and interest costs associated with the performance
and implementation of such change into Landlord’s Work ( “Additional Costs”).

 

8.3        Certain
Limitations. Tenant shall not include in its Tenant Change Requests to the final Construction Drawings and Specifications,
and Landlord shall have no obligation to agree to any Tenant Change Request that will:

 

(i)           Be
incompatible with the design, construction or equipment of the building and/or with the Project Improvements;

 

(ii)          violate
any applicable laws, ordinances and/or the rules and regulations of any governmental authority having jurisdiction; or

 

(iii)         violate
any applicable insurance regulations, including but not limited to any such regulation for a fire resistive Class A building.

 

8.4        Construction.
The Project Contractor will competitively bid each construction trade activity.

 

8.5        Tenant
Delay. The term “Tenant Delay,” as used herein, shall mean and be defined as any actual delay experienced
by Landlord, the Project Architect or the Project Contractor and its subcontractors in substantially completing any Landlord’s
Work; including but not limited to:

 

    	 	G-15 	 

     

    

 

(a)        Tenant’s
failure to complete or approve any action or item on or before the due date which is the responsibility of Tenant;

 

(b)        Tenant’s
changes to Construction Drawings and Specifications after Landlord’s approval of same;

 

(c)         Any
act, or failure to act by Tenant, Tenant’s Representative and/or any other person performing or required to perform services
on behalf of Tenant causing delay beyond the originally scheduled time periods agreed in this Work Letter or between Landlord
and Tenant;

 

(d)         Any
delay due to Tenant Change Requests to the Construction Drawings and Specifications; and

 

(c)         Any
delay due to untimely responses to Design Documents or the Construction Drawings and Specifications by Tenant’s special
consultants causing delay beyond the originally scheduled time periods agreed in this Work Letter or between Landlord and Tenant.

 

8.6        Landlord
Delay. The term “Landlord Delay” shall mean and be defined as delay in the completion of Landlord’s
Work that is caused by Landlord,. its agents or contractors, including without limitation:

 

(a)         Failure
to furnish any approval in a timely manner, per the agreed-to schedule in Article 3 hereof not caused by Tenant;

 

(b)         Interference
with access or work of Tenant or Tenant’s contractors after Tenant has received Landlord’s approval for access to
the Project premises;

 

(c)         Failure
to cooperate with Tenant’s contractors, or governmental permitting and inspecting authorities; or

 

(d)         Failure
to perform any work or take any action upon which Tenant’s work is dependent.

 

[End of Work Letter]

 

    	 	G-16 	 

     

    

 

EXHIBIT H

 

Subordination,
Non-disturbance And Attornment Agreement

 

This
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (“Agreement”) is made and entered into as of the               day
of                          ,
20    , by and among [                       ],
a                        corporation
(“Beneficiary”), [             ], a
                                  corporation
(“Landlord”), and [                              ],
a                         corporation
(“Tenant”). 

 

WITNESSETH:

 

WHEREAS,
Beneficiary is now the owner and holder of that certain Promissory Note (“Note”) dated                   
, 20     , in the principal sum of                                         
AND /100 DOLLARS ($                 ), secured by a first
priority Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing Statement (“Deed of Trust”),
dated as of                  , 20      ,
to or for the benefit of Beneficiary, recorded on                        ,
in Volume               , Page              
of the Real Property Records, County of                      ,
State of                     , which Deed of Trust constitutes
a lien or encumbrance on the real property described in Exhibit A attached hereto and incorporated herein for all purposes, together
with all improvements, appurtenances, other properties (whether real or personal), rights and interests described in the Deed
of Trust (“Property”); and

 

WHEREAS,
Tenant is the holder of a leasehold estate in and to a the Property (the property which is the subject of such leasehold estate,
together with Tenant’s appurtenant easements in the Property, being referred to as the “Demised Premises”), pursuant
to the terms of that certain [Lease] (“Lease”) dated                                ,
and executed by Tenant and Landlord; and

 

WHEREAS, Tenant, Landlord and
Beneficiary desire to confirm their understandings with respect to the Lease and the Deed of Trust.

 

Now, THEREFORE, in consideration
of the mutual covenants and agreements herein contained, the parties hereto agree and covenant as follows:

 

1.         Non-Disturbance
by Beneficiary. So long as Tenant is not in default (beyond any period given Tenant to cure such default) in the payment of
rent or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed as
would entitle Landlord to terminate the Lease, Tenant’s possession and occupancy of the Demised Premises shall not be interfered
with or disturbed by Beneficiary during the term of the Lease or any extension thereof duly exercised by Tenant. Beneficiary shall
not include Tenant in any foreclosure proceeding involving the Demised Premises, unless required by applicable state law for Beneficiary
to accomplish the foreclosure and then not to interfere with or diminish Tenant’s rights under said Lease or disturb Tenant’s
possession.

 

2.         Attornment
by Tenant. If the interests of Landlord in and to the Demised Premises are owned by Beneficiary by reason of judicial foreclosure,
private trustee sale or other proceedings brought by it or by any other manner, including, but not limited to, Beneficiary’s
exercise of its rights under any collateral assignment(s) of leases and rents, and Beneficiary

 

    	 	H-1 	 

     

    

 

succeeds to the interest of the Landlord
under the Lease, Tenant shall be bound to Beneficiary under all of the terms, covenants and conditions of the Lease for the balance
of the term thereof remaining and any extension thereof duly exercised by Tenant with the same force and effect as if Beneficiary
were the Landlord under the Lease. Tenant does hereby attorn to Beneficiary, as its Landlord, said attornment to be effective and
self-operative, without the execution of any further instruments on the part of any of the parties hereto, immediately upon Beneficiary’s
succeeding to the interest of the Landlord under the Lease. Landlord hereby authorizes and directs Tenant to deliver payment to
Beneficiary upon receipt of written notice and shall indemnify and hold Tenant harmless from any loss, cost, expense or claim incurred
by Tenant in connection with its compliance with this provision. The respective rights and obligations of Tenant and Beneficiary
upon such attornment, to the extent of the then remaining balance of the term of the Lease and any such extension, shall be and
are the same as now set forth therein, it being the intention of the parties hereto for this purpose to incorporate the Lease in
this Agreement by reference, with the same force and effect as if set forth at length herein.

 

3.         Beneficiary
Bound by Terms of Lease. If Beneficiary shall succeed to the interest of Landlord under the Lease, Beneficiary shall be bound
to Tenant under all of the terms, covenants and conditions of the Lease. Notwithstanding the foregoing, Beneficiary shall not
in any event have any liability for any default by Landlord under the Lease occurring prior to the date on which Beneficiary shall
have succeeded to the rights of Landlord under the Lease.

 

4.         Subordination
of Lease. Subject to the terms of this Agreement (including, but not limited to, those in Paragraph 2), the Lease and all
of Tenant’s right, title and interest in and to the Demised Premises, are and shall be subject and subordinate to the Deed
of Trust and the lien thereof, to all the terms, conditions and provisions of the Deed of Trust and to each and every advance
made or hereafter made under the Deed of Trust, and to all renewals, modifications, consolidations, replacements, substitutions
and extensions of the Deed of Trust, so that at all times the Deed of Trust shall be and remain a lien on the Demised Premises
prior and superior to the Lease for all purposes.

 

5.         Notice.
Notwithstanding anything to the contrary contained in the Lease, Tenant hereby agrees that in the event of any act, omission
or default by Landlord or Landlord’s agents, employees, contractors, licensees or invitees which would give Tenant the right,
either immediately or after the lapse of a period of time, to terminate the Lease, or to claim a partial or total eviction, or
to reduce the rent payable thereunder or credit or offset any amounts against future rents payable thereunder, Tenant will not
exercise any such right until it has given written notice of such act, omission or default to Beneficiary by delivering notice
of such act, omission or default, by certified or registered mail, addressed to Beneficiary at Beneficiary’s address as
given hereby or at the last address of Beneficiary furnished to Tenant in writing, and (i) in the case of any such act, omission
or default that can be cured by the payment of money, until sixty (60) days shall have elapsed following the giving of such notice
or (ii) in the case of any other such act, omission or default, until a reasonable period for remedying such act, omission or
default shall have elapsed following the giving of such notice and following the time when Beneficiary shall have become entitled
under the Deed of Trust to remedy the same, including such time as may be necessary to acquire possession of the Demised Premises
if possession is necessary to effect such cure, provided Beneficiary, with reasonable diligence, shall (a) pursue such remedies
as are available to it under the Deed of Trust so as to be able to remedy the act,

 

    	 	H-2 	 

     

    

 

omission or default, and (b) thereafter
shall have commenced and continued to remedy such act, omission or default or cause the same to be remedied. Tenant shall also
give a copy of any such notice hereunder to any successor to Beneficiary’s interest under the Deed of Trust, provided that Beneficiary
or such successor notifies Tenant of the name and address of the party Tenant is to notify. Beneficiary’s cure of Landlord’s default
shall not be considered an assumption by Beneficiary of Landlord’s other obligations under the Lease. If in curing any such act,
omission or default, Beneficiary requires access to the Demised Premises to effect such cure, Tenant shall provide access to the
Demised Premises to Beneficiary as required by Beneficiary to effect such cure at all reasonable times. Unless Beneficiary otherwise
agrees in writing, Landlord shall remain solely liable to perform Landlord’s obligations under the Lease (but only to the extent
required by and subject to the limitation included with the Lease), both before and after Beneficiary’s exercise of any right or
remedy under this Agreement. If Beneficiary or any successor or assign becomes obligated to perform as Landlord under the Lease,
such person or entity shall be released from those obligations when such person or entity assigns, sells or otherwise transfers
its interest in the Demised Premises.

 

6.         Successors
of Beneficiary Also Included. The term “Beneficiary” shall be deemed to include the Beneficiary stated hereinabove
and any of its successors and assigns, including anyone who shall have succeeded to Landlord’s interest by, through or under
judicial foreclosure or private trustee’s sale or other proceedings brought pursuant to the Deed of Trust, or deed in lieu
of such foreclosure or proceedings, or otherwise.

 

7.         Beneficiary
Not Liable. Tenant agrees that no prepayment of rent or additional rent due under the Lease of more than one month in advance,
and no amendment, modification, surrender or cancellation of the Lease, and no waiver or consent by Landlord under the terms of
the Lease, shall be binding upon or as against Beneficiary, as holder of the Deed of Trust and as Landlord under the Lease if
it succeeds to that position, unless consented to in writing by Beneficiary.

 

8.         Beneficiary
Consent. Tenant agrees that (a) the Lease cannot be amended or modified nor have any of its terms waived by the Landlord,
(b) Tenant and Landlord may not terminate, cancel or surrender the term of the Lease, except as expressly permitted by the provisions
of the Lease, and (c) Tenant shall not pay any rent for more than the month in advance of the date when due, unless in each case
Beneficiary’s prior written consent shall have been obtained.

 

9.         No
Modification. This Agreement may not be modified orally or in any manner other than by an agreement, in writing, signed by
the parties hereto and their respective successors in interest. This Agreement shall inure to the benefit of and be binding upon
the parties hereto, their respective successors and assigns.

 

10.      Counter
parts. To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required.
It shall not be necessary that the signature and acknowledgment of, or on behalf of, each party, or that the signature and
acknowledgment of all persons required to bind any party, appear on each counterpart. All counterparts shall collectively
constitute a single instrument. It shall not be necessary in making proof of this Agreement to produce or account for more
than a single counterpart containing the respective

 

    	 	H-3 	 

     

    

 

signatures and acknowledgment of, or on
behalf of, each of the parties hereto. Any signature and acknowledgment page to any counterpart may be detached from such counterpart
without impairing the legal effect of the signatures and acknowledgments thereon and thereafter attached to another counterpart
identical thereto except having attached to it additional signature and acknowledgment pages.

 

11.        Notices.
All notices or other communications required or permitted to be given pursuant to the provisions
hereof shall be in writing and shall be deemed served and given at the time of (i) deposit in a depository receptacle under the
care and custody of the United States Postal Service, properly addressed to the designated address of the addressee as set forth
below, postage prepaid, registered or certified mail with return receipt requested or (ii) delivery to the designated address
of the addressee set forth below by a third party commercial delivery service. Notice given in any other manner shall be effective
only if and when received by the addressee. For purposes of notices, the addresses of the parties shall be as follows: 

 

	If to the Beneficiary: 	 	 
	 	 	 
	 	 	 
	 	 	 
	Tenant: 	 	 
	 	 	 
	 	 	 
	 	 	 
	Landlord: 	 	 
	 	 	 
	 	 	 

 

Any party shall have the right
to change its address for notice hereunder to any other location within the continental United States by notice to the other parties
of such new address at least thirty (30) days prior to the effective date of such new address.

 

12.        No
Merger of Estates. It is the express intention of Landlord and Tenant that the acquisition by either party of the right, title,
interest and estate of the other party in and to the Demised Premises shall not result in termination or cancellation of the Lease
by operation of the principle of merger of estates or otherwise, notwithstanding any applicable law to the contrary; provided,
however, that in the event Tenant acquires the right, title, interest and estate of Landlord in and to the Demised Premises, whether
pursuant to any purchase option or right of first refusal granted in the Lease or otherwise, if either (i) the indebtedness secured
by the Deed of Trust is satisfied or (ii) Tenant assumes or unconditionally guaranties the indebtedness secured by the Deed of
Trust (on a recourse basis), then in such event the estates of Landlord and Tenant in and to the Demised Premises shall merge
and the Lease will be extinguished.

 

    	 	H-4 	 

     

    

 

In
Witness Whereof, the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	Beneficiary:
	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Tenant:	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	LAndlord:	 
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	H-5 	 

     

    

 

	STATE OF	 	)	 
	 	 	 	 
	COUNTY OF	 	)	 

 

This instrument was acknowledged before me on the        day
of                             ,
20       , by                        ,
the                           
of                         ,
a                        ,
on behalf of said                      .

 

	 	 
	 	Notary Public, State of	 

 

(SEAL)

 

	STATE OF	 	)	 
	 	 	 	 
	COUNTY OF	 	)	 

 

This instrument was acknowledged before me on the        day
of                             ,
20       , by                        ,
the                           
of                         ,
a                        ,
on behalf of said                      .

 

	 	 
	 	Notary Public, State of	 

 

(SEAL)

 

	STATE OF	 	)	 
	 	 	 	 
	COUNTY OF	 	)	 

 

This instrument was acknowledged before me on the        day
of                             ,
20       , by                        ,
the                           
of                         ,
a                        ,
on behalf of said                      .

 

	 	 
	 	Notary Public, State of	 

 

(SEAL)

 

    	 	H-6 	 

     

    

 

EXHIBIT I

 

CENTRAL TEXAS REHABILITATION HOSPITAL

Prevarian Hospital Partners, LP

Preliminary Project Budget

 

	 	 	Total Cost	 	 	Cost/GSF	 
	 	 	 	 	 	 	 
	  ACQUISITION HARD COSTS	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Land - Purchase Price	 	 	6,333,607	 	 	$	107.35	 
	HARD COSTS	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Hospital Construction (Hard Costs)	 	 	11,800,000	 	 	$	200.00	 
	Hospital Construction (GC Fees, Insurance)	 	 	767,000	 	 	$	13.00	 
	Hospital Construction (Contractor Contingency)	 	 	305,625	 	 	$	5.18	 
	Site Work (included in Hospital Construction costs)	 	 	-	 	 	$	-	 
	Off Site Improvements	 	 	125,000	 	 	$	2.12	 
	Payment & Performance Bond	 	 	128,776	 	 	$	2.18	 
	Water Quality/Storm water	 	 	300,000	 	 	$	5.08	 
	Owner Hard Cost Contingency	 	 	265,953	 	 	$	4.51	 
	Total Hard Costs	 	$	13,692,304	 	 	$	232.07	 
	DEVELOPMENT SOFT COSTS	 	 	 	 	 	 	 	 
	Architect Contract	 	$	816,750	 	 	$	13.84	 
	Civil Engineer Contract	 	$	60,000	 	 	$	1.02	 
	Landscape/Irrigation Design	 	$	15,000	 	 	 	 	 
	A&E Extra Services & ADA Plan Review	 	$	25,500	 	 	$	0.43	 
	A&E Reimbursables	 	$	40,838	 	 	 	 	 
	Material Testing/Other Owner Inspections	 	$	35,000	 	 	$	0.59	 
	Lender Inspection	 	$	9,000	 	 	$	0.15	 
	Prevarian Lease Commission (first 1/2)	 	$	189,148	 	 	$	3.21	 
	Prevarian Lease Commission (second l/2)	 	$	189,148	 	 	$	3.21	 
	Property Taxes Prior to Lease Commencement Date	 	$	235,349	 	 	$	3.99	 
	Development/Construction Mgt/Developer Oil	 	$	611,250	 	 	$	10.36	 
	Developer Reimbursables	 	$	8,500	 	 	$	0.14	 
	Zoning/Permitting Consultant	 	$	10,000	 	 	$	0.17	 
	Owner Soft Cost Contingency	 	$	75,000	 	 	$	1.27	 
	Total Soft Costs	 	$	2,320,483	 	 	$	39.33	 
	 	 	 	 	 	 	 	 	 
	ACQUISITION/FINANCING SOFT COSTS	 	 	 	 	 	 	 	 
	Legal - Zoning Work/City Fees	 	$	75,000	 	 	$	1.27	 
	Legal - Land Contract/title & Survey Review/Closing	 	$	10,000	 	 	$	0.17	 
	Legal - Lease Agreement/GC Agreement/Consultant Agreements	 	$	8,000	 	 	$	0.14	 
	Legal - Partnership Documents & Formation	 	$	70,000	 	 	$	0.34	 
	Legal - Lender Documentation	 	$	15,000	 	 	$	0.25	 
	GVA Cawley	 	$	300,000	 	 	$	5.08	 
	Phase I Environmental Report	 	$	6,000	 	 	$	0.10	 
	Geotechnical/Soils Reports	 	$	6,500	 	 	$	0.11	 
	Survey (Title/Tree/Topo)	 	$	16,000	 	 	$	0.27	 
	Plat Preparation and Submittal	 	$	17,000	 	 	$	0.29	 
	Title Policy/Endorsements/Other Fees	 	$	22,500	 	 	$	1.23	 
	Owner’s Insurance - Builders Risk/General Liability	 	$	40,000	 	 	$	0.68	 
	Appraisal	 	$	11,000	 	 	$	0.19	 
	Lender Fee	 	$	168,053	 	 	$	2.85	 
	Equity Fee	 	$	216,068	 	 	$	3.66	 
	Acquisition/Financing Soft Cost Contingency	 	$	30,000		 	$	0.51	 
	Total Acquisition/Financing	 	$	1,011,120	 	 	$	17.14	 
	Financing Interest - Prior to Rent Commencement	 	$	650,000	 	 	$	11.02	 
	TOTAL PROJECT COSTS	 	$	24,007,509	 	 	$	406.91	 

 

    	 	I-1 	 

     

    

 

EXHIBIT J

 

CONSTRUCTION SCHEDULE

 

	Mobilize and Procurement/Ground Breaking	2 weeks
	 	 
	Site & Foundation Work	12 weeks
	 	 
	Building Shell	22 weeks
	 	 
	Building Interior Finishout	22 weeks
	 	 
	Certificate of Occupancy/Substantial Completion	2 weeks (punch list work to follow)
	 	 
	PROJECT SCHEDULE TOTAL (excluding punch list items)	60 weeks

 

    	 	J-1 	 

     

    

 

EXHIBIT K

 

SITE PLAN SHOWING EXPANSION

 

 

 

    	 	K-1 	 

     

    

 

ASSIGNMENT
AND ASSUMPTION OF LEASE

 

THIS ASSIGNMENT
AND ASSUMPTION OF LEASE (“Assignment”) is effective as of October 13, 2010, by and between PREVARIAN HOSPITAL PARTNERS,
LP, a Texas limited partnership (“Assignor”), and PREVARIAN AUSTIN REHAB, LP, a Texas limited partnership (“Assignee”).

 

RECITALS:

 

WHEREAS,
Assignor and CTRH, LLC have entered into that certain Amended and Restated Lease Agreement, dated September 17, 2010 (the “Lease”),
for the lease of certain real property in Travis County, Texas; and

 

WHEREAS,
the parties desire that the Lease be assigned to Assignee and that Assignee assume all obligations thereunder.

 

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

 

		1.	Assignor hereby assigns and transfers to Assignee all of
its right, title and interest in and to the Lease, and Assignee hereby accepts the foregoing assignment and assumes all obligations
of Assignor under the Lease.

 

		2	This Assignment shall be binding on and inure to the benefit of the parties hereto and their successors and assigns.

 

		3.	This Assignment may be executed in duplicate counterparts,
and the counterparts together shall constitute the single binding agreement of the parties.

 

ASSIGNMENT AND ASSUMPTION OF LEASE –  Page 1

 

     

     

    

 

IN WITNESS WEREOF, the parties have executed this Assignment
effective as of the date first written above.

 

	ASSIGNOR:	 	 
	 	 	 
	PREVARIAN HOSPITAL PARTNERS, LP,	 
	a Texas limited partnership	 
	 	 	 
	BY: 	GP Prevarian Hospital Partners, LLC,	 
	 	a Texas limited liability company	 
	 	 	 	 
	 	By:	/s/ Kathy delavergne	 
	 	Name:	Kathy delavergne	 
	 	Title:	Manager	 

 

	ASSIGNEE:	 	 
	 	 	 
	PREVARIAN AUSTIN REHAB, LP,	 
	a Texas limited partnership	 
	 	 	 	 
	By: 	GP Prevarian Austin Rehab, LLC,	 
	 	a Texas limited liability company,	 
	 	its general partner	 
	 	 	 	 
	By:	/s/ Kathy delavergne	 
	Name:	Kathy delavergne	 
	Title:	Manager	 

 

ASSIGNMENT AND ASSUMPTION OF LEASE –  Page 2

 

     

     

    

 

ACCEPTANCE
OF PREMISES MEMORANDUM

 

This ACCEPTANCE OF
PREMISES MEMORANDUM (“Memorandum”) is entered into on December 26, 2012, between Prevarian Austin Rehab, LP,
a Texas limited partnership (“Landlord”), and CTRH, LLC, a Delaware limited liability company ( “Tenant”).

 

RECITALS

 

WHEREAS, Prevarian Hospital Partners, LP
and Tenant entered into that certain Amended and Restated Lease Agreement, dated September 17, 2010, as amended from time to time
(the “Lease”), and Prevarian Hospital Partners, LP assigned its interest in the Lease to Landlord. All capitalized terms
used but not otherwise defined herein shall have the meanings set forth in the Lease.

 

WHEREAS, Landlord and Tenant
wish to confirm certain matters relating to the Lease and the work performed by Landlord at the Leased Property.

 

AGREEMENT

 

1.           Commencement
Date . Landlord and Tenant certify that the Commencement Date under the Lease is May 1, 2012, and the Lease Term is scheduled
to expire on April 30, 2027. Tenant’s obligation to pay Minimum Rent shall commence on August 1, 2012. The Lease has been
guaranteed by Kindred Healthcare, Inc. pursuant to that certain Corporate Guaranty dated May 24, 2012. Attached hereto as Exhibit
C is the Rent Schedule which sets forth the Minimum Rent for the Initial Term. The Rent Schedule attached hereto shall replace
and supersede Exhibit C attached to the Lease.

 

2.          Acceptance
of Premises . Except as set forth in Exhibit ‘B” attached to that certain Tenant’s Estoppel Certificate
dated on or about the date hereof, Landlord has completed all work required to be completed by Landlord under the Lease.

 

3.          Entire
Agreement; No Amendment. The Lease constitutes the entire agreement between Landlord and Tenant. The Lease is in full
force and effect. This Memorandum supplements but does not amend the Lease.

 

4.          No
Default, Offset, Etc. Tenant has no knowledge of a default under the Lease or an event which, with the passage of time or
notice (or both), would constitute a default by Landlord under the Lease. Tenant has no present set-offs, recoupments, estoppels,
claims, or counterclaims against Landlord, and to Tenant’s knowledge Tenant is not in default under the Lease.

 

5.          Reliance.
Tenant agrees that this Memorandum may be relied upon by Landlord, Landlord’s partners and prospective purchasers (and lender
of prospective purchaser), and The Frost National Bank (” Landlord’s Lender” ), and each of their respective
successors and assigns.

 

    	 	Page 1 of 2	 

     

    

 

[Signature page follows.]

 

EXECUTED as of the date set forth above.

 

	 	LANDLORD:
	 	 
	 	Prevarian Austin Rehab, LP,
	 	a Texas limited partnership
	 	 	 	 
	 	By:	GP Prevarian Austin Rehab, LLC,
	 	 	a Texas limited liability company,
	 	 	its general partner
	 	 	 	 
	 	 	By: 	/s/ Kathy delavergne
	 	 	Name:	Kathy delavergne
	 	 	Title:	Manager
	 	 	 	 
	 	TENANT:
	 	 
	 	CTRH, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Cristina E.O’Brien
	 	Name:	Cristina E.O'Brien
	 	Title:	VP, Real Estate Counsel

 

	GUARANTOR:	 
	 	 	 
	Kindred Healthcare, Inc.
	 	 	 
	By:	/s/ Cristina E.O’Brien	 
	Name:	Cristina E.O’Brien	 
	Title:	VP, Real Estate Counsel	 
	 	 
	Date: December 26, 2012

 

    	 	Page 2 of 2	 

     

    

 

EXHIBIT “C”

 

MINIMUM RENT SCHEDULE

 

	 	 	ANNUAL	 
	 	 	 	 
	Year One	 	 	 	 
	Months 1-3 (May, June and July 2012)	 	 	0	 
	Months 4-6 (Aug., Sept. and October 2012)	 	 	248,832	 
	Months 7-9 (Nov., Dec. 2012 and Jan. 2013)	 	 	373,249	 
	Months 10-12 (Feb., March and April 2013)	 	 	622,081	 
	Total Year One	 	 	1,244,162	 
	 	 	 	 	 
	Year Two	 	 	2,562,974	 
	Year Three	 	 	2,639,863	 
	Year Four	 	 	2,719,059	 
	Year Five	 	 	2,800,631	 
	Year Six	 	 	2,884,650	 
	Year Seven	 	 	2,971,189	 
	Year Eight	 	 	3,060,325	 
	Year Nine	 	 	3,152,135	 
	Year Ten	 	 	3,246,699	 
	Year Eleven	 	 	3,344,099	 
	Year Twelve	 	 	3,444,422	 
	Year Thirteen	 	 	3,547,755	 
	Year Fourteen	 	 	3,654,188	 
	Year Fifteen	 	 	3,763,813	 

 

Exhibit “C” - Page Solo

 

     

     

    

 

CORPORATE GUARANTY

 

In
consideration of $10.00 and other good and valuable consideration, which the undersigned acknowledges and agrees has been received,
and in connection with that certain Lease, dated September 17, 2010, entered into by and between Prevarian hospital Partners, LP,
a Texas limited partnership, the landlord therein named, and CTRH, LLC, a Texas limited liability company, the tenant therein named
(hereinafter called “Tenant”), (the Lease, as amended, is referred to herein as the “Lease”),
and Prevarian Hospital Partners, LP having assigned its interest, as landlord, to Prevarian Austin Rehab, LP, a Texas limited
partnership (hereinafter called “Landlord”), which Lease concerns a certain parcel of real property located in
Austin, Travis County, Texas, which is more fully described on Exhibit A attached to the Lease, KINDRED HEALTHCARE, INC.,
a Delaware corporation (hereinafter called “Guarantor”), intending to be legally
bound, hereby irrevocably guarantees to Landlord (i) the full and prompt payment when due (whether at stated maturity, by acceleration,
or otherwise) of eighty percent (80%) of the Minimum Rent and Additional Charges and any and all other sums and charges payable
by Tenant under the Lease, and (ii) eighty percent (80%) of the full, faithful and prompt performance and observance of all
the covenants, terms, conditions, and agreements contained in the Lease which are to be performed and observed by Tenant (all payment
and performance obligations referred to in clauses (i) and (ii) being referred to herein, collectively, as the “Obligations”);
and Guarantor does hereby become primary obligor, and not only surety to Landlord, for and with respect to the Obligations. Terms
used herein with their initial letters capitalized which have been specifically defined in the Lease shall have the same meaning
herein as in the Lease unless such terms are otherwise defined in. this Guaranty.

 

Guarantor covenants
and warrants that RehabCare Hospital Holdings, LLC, an Initial Member of Tenant, is a wholly owned subsidiary of RehabCare Group,
Inc., which is owned, directly or indirectly, by the Guarantor.

 

This Guaranty
is an absolute, irrevocable and unconditional guaranty of payment (and not of collection) up to, but not exceeding eighty percent
(80%) of any outstanding liability of Tenant and performance of Tenant under the Lease. Guarantor’s liability hereunder is direct
and is independent of the Tenant’s obligations under the Lease, and may be enforced without Landlord being required to resort to
any other right, remedy or security, and this Guaranty shall. be enforceable against Guarantor without the necessity for any suit
or proceedings on Landlord’s part of any kind or nature whatsoever against Tenant or the joiner of Tenant in any suit or proceeding,
and without the necessity of any notice of non-payment, non-performance or non-observance of any of the Tenant’s obligations under
the Lease or of any notice of acceptance of this Guaranty or of Landlord’s intention to act in reliance hereon or of any other
notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives; and Guarantor
hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in nowise be terminated,
affected or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, of any of the rights or remedies
reserved to Landlord pursuant to the provisions of the Lease.

 

This Guaranty shall be a continuing Guaranty, and
(whether or not Guarantor shall have notice or knowledge of any of the following) the liability and obligations of Guarantor hereunder
shall be absolute and unconditional and shall remain in full force and effect without regard to,

 

    	Corporate Guaranty  – Page 1	 

     

    

 

and shall not be released, discharged or
in any way impaired by (a) any exercise or non-exercise of any right, power, remedy or privilege under or in respect of the Lease
or this Guaranty or any waiver, consent or approval by Landlord with respect to any of the covenants, terms, conditions or agreements
contained in the Lease or any indulgences, forbearances or extensions of time for performance or observance allowed to Tenant from
time to time and for any length of time; (b) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or similar proceeding relating to Tenant, or its properties; (c) any limitation on the liability or obligation of Tenant
under the Lease or its estate in bankruptcy or of any remedy for the enforcement thereof, resulting from the operation of any present
or future provision of the federal or any state bankruptcy law or any other statute or from the decision of any court; (d) any
termination of the Lease prior to the expiration of its Term (except that Guarantor shall not be liable for amounts that would
have otherwise accrued under the Lease after proper termination of the Lease and payment of any and all amounts due to Landlord
and Facility Mortgagee in connection with or related to such termination); and (e) any security provided for the Obligations; and
any sale, assignment, transfer or conveyance (A) by Landlord of all or any portion of the Leased Property (as such term is defined
in the Lease) or of Landlord’s interest in the Lease, or (B) of any ownership interest in the Landlord.

 

All of Landlord’s
rights and remedies under the Lease and under this Guaranty are intended to be distinct, separate and cumulative and no such right
or remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others or of any rights or remedies
provided by law. Except as may otherwise be set forth in the Lease, no termination of the Lease or taking or recovering of the
premises demised thereby shall deprive Landlord of any of its rights and remedies against Guarantor under this Guaranty. This Guaranty
shall apply to the obligations of Tenant under the Lease as in effect on the date hereof as well as to the obligations of Tenant
under the Lease as it may be extended, renewed, amended, modified or supplemented.

 

The Guarantor hereby
waives any requirement that the Landlord protect, secure, perfect or insure any security interest or lien or any property subject
thereto or exhaust any right or take any action against any person or entity or any collateral (including any rights relating to
marshaling of assets).

 

The Guarantor guarantees that the Obligations will
be paid and performed strictly in accordance with the terms of the Lease, regardless of the value, genuineness, validity, regularity
or enforceability of the Obligations, and of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Landlord with respect thereto. The liability and obligations of the Guarantor under this
Guaranty shall be absolute and unconditional, not subject to any reduction, limitation, impairment, termination, defense, offset,
counterclaim or recoupment whatsoever (all of which are hereby expressly waived by the Guarantor) whether by reason of any claim
of any character whatsoever, including, without limitation, any claim of waiver, release, surrender, alteration or compromise,
or by reason of any liability at any time to the Guarantor or otherwise, whether based upon any obligations or any other agreements
or otherwise, howsoever arising, whether out of action or inaction or otherwise and whether resulting from default, willful misconduct
of Tenant, negligence or otherwise, and without limiting the foregoing irrespective of (and whether or not Guarantor shall have
notice or knowledge of): (a) any lack of validity or enforceability of the Lease or of any agreement or

 

    	Corporate Guaranty  – Page 2	 

     

    

 

instrument relating thereto; (b) any change
in the time, manner or place of payment or performance of, or in any other term in respect of, all or any of the Obligations, or
any other amendment or waiver of or consent to any departure from the Lease or any other agreement relating to any Obligations;
(c) any increase in, addition to, exchange or release of, or non-perfection of any lien on or security interest in, any collateral
or any release or amendment or waiver of or consent to any departure from or failure to enforce any other guarantee, for all or
any of the Obligations; (d) any other circumstance which might otherwise constitute a defense available to, or a discharge of,
the Tenant or the Guarantor; (e) the absence of any action on the part of the Landlord to obtain payment for the Obligations from
the Tenant; (f) any insolvency, bankruptcy, reorganization or dissolution, or any proceeding of the Tenant or the Guarantor, including,
without limitation, rejection of the guaranteed Obligations in such bankruptcy; (g) the absence of notice or any delay in any action
to enforce any Obligations or to exercise any right or remedy against the Guarantor or the Tenant, whether hereunder, under any
Obligations or under any agreement or any indulgence, compromise or extension granted; or (h) the termination or cessation of a
corporate relationship between Guarantor and Tenant.

 

Guarantor further
agrees that, to the extent that the Tenant or the Guarantor makes a payment or payments to the Landlord, which payment or payments
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid
to the Tenant or the Guarantor or their respective estate, trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then to the extent of such payment or repayment, this Guaranty and the advances
or part thereof which have been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect
as of the date such initial payment, reduction or satisfaction occurred. The provisions of this paragraph shall survive the payment
and performance of the Obligations and the termination of this Guaranty.

 

Until such time as
all the Obligations have been fully and indefeasibly paid to Landlord and performed in full, Guarantor shall have no rights (direct
or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from any person
or entity (including, without limitation, the Tenant) for any payments made by the Guarantor hereunder, and Guarantor hereby waives
and releases absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other
rights of payment or recovery which it may now have or hereafter acquire. If any amount shall be paid to the Guarantor in violation
of the preceding sentence and the Obligations shall not have been paid in full, such amount shall be deemed to have been paid to
the Guarantor for the benefit of, and held in trust for the benefit of, the Landlord and shall forthwith be paid to the Landlord
to be credited and applied upon the Obligations, whether matured or unmatured, in accordance with the terms of the Lease. The Guarantor
acknowledges that it will derive substantial direct and indirect benefit from the granting, execution and delivery of the Lease
by the Landlord and that the waiver set forth in this paragraph is knowingly made in contemplation of such benefits. The provisions
of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Guarantor represents and warrants to Landlord that (a) the execution
and delivery of this Guaranty has been duly authorized by the appropriate officers of Guarantor and does not contravene any law,
or any contractual or legal restriction, applicable to it, (b) no authorization

 

    	Corporate Guaranty  – Page 3	 

     

    

 

or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body is required for its execution, delivery and performance
of this Guaranty, (c) there are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived,
(d) Guarantor will, directly or indirectly, benefit from the transaction which is the subject of the Lease, and (e) neither the
execution, delivery or performance of this Guaranty, nor compliance with the terms and provisions hereof, conflicts or will conflict
with or results or result in a default under or a breach of any of the terms, conditions or provisions of the Certificate of Incorporation
or the Bylaws of the Guarantor or of any contract to which the Guarantor is a party or by which it is bound.

 

This Guaranty
shall be legally binding upon Guarantor and its successors and assigns and shall inure to the benefit of Landlord and Facility
Mortgagee (as such term is defined in the Lease) and each of their respective successors and assigns. Reference herein to Landlord
shall be deemed to include Landlord and its successors and assigns. Reference herein to Tenant shall be deemed to include Tenant
and its successors and assigns. Without limiting the generality of the foregoing, the Landlord may assign or otherwise transfer
(whether as an outright assignment or transfer or as collateral) all or any portion of its rights and obligations under the Lease
to any other person or entity (any such person or entity, a “Landlord Assign”) and such Landlord. Assign shall
thereupon become vested (on a non-exclusive basis, as an additional beneficiary) with all the benefits in respect thereof granted
to the Landlord herein or otherwise.

 

THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICT OF LAW
PROVISIONS THEREOF. GUARANTOR HEREBY SUBMITS TO PERSONAL JURISDICTION IN SAID STATE AND THE FEDERAL COURTS OF THE UNITED STATES
OF AMERICA LOCATED .IN SAID STATE (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM) FOR THE ENFORCEMENT OF GUARANTOR’S
OBLIGATIONS HEREUNDER, AND WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAW OF ANY OTHER STATE TO OBJECT TO JURISDICTION WITHIN
SUCH STATE FOR THE PURPOSES OF SUCH ACTION, SUIT, PROCEEDING OR LITIGATION TO ENFORCE SUCH OBLIGATIONS. GUARANTOR HEREBY WAIVES
AND AGREES NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, (A) THAT
IT IS NOT SUBJECT TO SUCH JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN THOSE
COURTS OR THAT THIS GUARANTY MAY NOT BE ENFORCED IN OR BY THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT
THE ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, OR (C) THAT THE VENUE OF THE ACTION, SUIT OR PROCEEDING IS
IMPROPER (BUT NOTHING HEREIN SHALL AFFECT THE RIGHT OF LANDLORD OR ANY LANDLORD ASSIGN TO BRING ANY ACTION, SUIT OR PROCEEDING
IN ANY OTHER FORUM). IN THE EVENT ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED, GUARANTOR AGREES THAT SERVICE
OF PROCESS MAY BE MADE, AND PERSONAL JURISDICTION OVER GUARANTOR OBTAINED, BY SERVICE OF A COPY OF THE SUMMONS, COMPLAINT AND

 

    	Corporate Guaranty  – Page 4	 

     

    

 

OTHER PLEADINGS REQUIRED TO COMMENCE
SUCH LITIGATION UPON GUARANTOR AT GUARANTOR’S ADDRESS SET FORTH HEREIN.

 

Without the
prior written consent thereto by Landlord and the Facility Mortgagee, Guarantor will not enter into any amendment to this Guaranty
and without such consent no such amendment will be effective in any event. Further, Guarantor shall not enter into any amendment
to this Guaranty, and no such amendment hereto shall be effective, unless prior to such amendment Landlord and Facility Mortgagee
have received written confirmation from each nationally recognized statistical rating organization (including, without limitation,
S&P and Moody’s (as such terms are defined in the Lease), if applicable) which has issued a rating of any debt issued by the
Facility Mortgagee or the Landlord which is secured by the Leased Property which are subject to the Lease that such amendment to
this Guaranty will not result in a downgrade, withdrawal or qualification of the rating then assigned to such debt. No waiver of
any provision of this Guaranty, and no consent to any departure by Guarantor herefrom, shall be effective without the prior written
consent thereto by Landlord and Facility Mortgagee, and any waiver or consent for which such written consent is given shall be
effective only in the specific instance and for the specific purpose for which given. No failure on the part of the Landlord to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. Guarantor will from time
to time during the Term (as defined in the Lease), promptly following request of Landlord or Facility Mortgagee, confirm in writing
to Landlord and to Facility Mortgagee that this Guaranty remains in full force and effect in accordance with its terms.

 

So long as the Guarantor
is a reporting company under the Securities and Exchange Act of 1934, as amended, Guarantor shall not be obligated to provide financial
information to Landlord or any Facility Mortgage. At any time when Guarantor is not a reporting company under the Securities and
Exchange Act of 1934, as amended, it will deliver to Landlord. and Facility Mortgagee the following information:

 

		(a)	within ninety (90) days after the end of each fiscal year
of Guarantor, a balance sheet of Guarantor and its consolidated subsidiaries as at the end of such year, a statement of profits
and losses of Guarantor and its consolidated subsidiaries for such year, and a statement of cash flows of Guarantor, and its consolidated
subsidiaries for such year, setting forth in each case, in comparative form, the corresponding figures for the preceding fiscal
year in reasonable detail and scope and certified by independent certified public accountants of recognized national standing
selected by Guarantor; and

 

		(b)	within forty-five (45) days after the end of each of the
first three (3) fiscal quarters of Guarantor a balance sheet of Guarantor and its consolidated subsidiaries as at the end of such
quarter, statements of profits and losses of Guarantor and its consolidated subsidiaries for such quarter and a statement of cash
flows of Guarantor and in each case, in comparative form, the corresponding figures for the similar quarter of the preceding year,
in reasonable detail and scope, and certified to be true and complete by a financial officer of Guarantor

 

    	Corporate Guaranty  – Page 5	 

     

    

 

having knowledge
thereof; the foregoing financial statements all being prepared in accordance with GAAP (except as otherwise stated therein).

 

The Guarantor shall permit the Landlord
and Facility Mortgagee and their representatives, at the expense of such person or entity, and upon reasonable prior notice to
the Guarantor, to visit the principal executive office of the Guarantor, to discuss the affairs, finances and accounts of the Guarantor
with the Guarantor’s officers, and (with the consent of the Guarantor, which consent will not be unreasonably withheld) its independent
public accountants, and (with the consent of the Guarantor, which consent will not be unreasonably withheld, conditioned or delayed)
to visit the other offices and properties of the Guarantor and each subsidiary, all at such reasonable times and as often as may
be reasonably requested in writing. Notwithstanding the prior sentence, such inspection shall be at Guarantor’s expense in the
event of an Event of Default under the Lease.

 

GUARANTOR
AND LANDLORD (BY ITS ACCEPTANCE OF THIS GUARANTY) HEREBY MUTUALLY WAIVE TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE ARISING
HEREUNDER. The provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of
this Guaranty.

 

Notwithstanding
anything to the contrary set forth in this Guaranty, in the event (1) an amendment to or modification of the Lease which increases
or extends the obligations of Guarantor is entered into by a Tenant without the consent of Guarantor, and (2) at the time of such
amendment to or modification of the Lease, the Tenant is not an affiliate of Guarantor, then any such amendment to or modification
of the Lease shall be deemed to be a “Non-Approved Lease Amendment.” In the event of a Non-Approved Lease Amendment
(a) this Guaranty and the Guarantor’s obligations hereunder shall continue in full force and effect with respect to the
Lease (as modified by any amendments or modifications which are not Non-Approved. Lease Amendments) as if no such Non-Approved
Lease Amendment had occurred, (b) Guarantor shall not have, and not be deemed to have, guaranteed any additional obligations which
are specifically included in such Non-Approved Lease Amendment, and (c) in no event shall Guarantor be relieved of any of its
obligations hereunder with respect to Tenant’s obligations under the Lease which existed without taking into account such
Non-Approved Lease Amendment. As used in this paragraph and in the following paragraph, an affiliate of Guarantor shall mean a
person or entity controlling, controlled by or under common control with Guarantor.

 

In the event that the Lease is assigned,
or all or a portion of the premises subject to the Lease are subleased, to a party (a “Non-Affiliate”) that is
not an affiliate of Guarantor, the Landlord agrees (by its acceptance of this Guaranty) to deliver to the Guarantor copies of all
notices of non-payment, non-performance or non-observance that the Landlord delivers to such Non-Affiliate.

 

    	Corporate Guaranty  – Page 6	 

     

    

 

All notices and other
communications provided for hereunder shall be in writing (including telecopier, telegraphic, telex or cable communication) and
mailed, telecopied, telegraphed, telexed, cabled or delivered to it, if to the Guarantor, at:

 

Kindred
Healthcare, Inc.

c/o Cristina.
E. O’Brien

Vice President
and Real Estate Counsel

680 South
Fourth Street

Louisville,
Kentucky 40202

Telephone:
502.596.7556

Facsimile:
502.596.4785

Email: cristina.obrien@kindredhealthcare.com

 

and if to
Landlord or any successor thereof or Landlord Assign at its address as may be designated by such party in a written notice to the
other party. All such notices and other communications shall, when mailed, telecopied, telegraphed, telexed or cabled, be effective
when deposited in the mails, telecopied, delivered to the telegraph company, confirmed by telex answerback or delivered to the
cable company, respectively.

 

The Guarantor agrees
that it shall not institute against, or join any other person or entity in instituting against, any Landlord Assign or any person
or entity which is or was a creditor of or holder of any certificate or instrument issued by any Landlord Assign any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or
similar law for one (1) year and one (1) day after the latest maturing commercial paper note issued by such Landlord Assign or
any such creditor of or holder of a certificate or instrument issued by such Landlord Assign is paid in full. Without prejudice
to the survival of any other agreement of the Guarantor hereunder, the provisions of this paragraph shall survive the payment and
performance of the Obligations and the termination of this Guaranty.

 

Except for provisions
of this Guaranty which by their terms survive the termination hereof, this Guaranty shall terminate after all of the following
shall have occurred: (i) any Minimum Rent, all Additional Charges and all other sums and charges payable by the Tenant under the
Lease shall have been indefeasibly paid in full in cash; and (ii) all other obligations of the Tenant under the Lease shall have
been performed in accordance with the terms and provisions of the Lease.

 

For a period of ten (10) years following the Commencement
Date of the Lease, Guarantor agrees to cause RehabCare Group, Inc. (“RCG”) to grant to Prevarian Hospital Partners, LP
(“Prevarian”) the opportunity to submit proposals for participation in the construction or development of any design
build facilities to be constructed, developed or operated by RCG within Travis County, Texas. For the purposes hereof, and without
limiting the generality of the foregoing, Guarantor shall cause RCG to provide Prevarian written notice of any such design built
opportunity, including any appropriate direction to allow Landlord to participate in any bidding process or submission of proposals
regarding such projects. In the event of any

 

    	Corporate Guaranty  – Page 7	 

     

    

 

termination of the Lease by reason of Tenant’s
default, Guarantor agrees to cause RCG to grant Prevarian the opportunity to submit such proposals for projects to be constructed,
developed or operated by RCG within Travis County, Texas for a period equal to the remainder of the term of the Lease if it had
not been terminated. In the event Landlord assigns the Lease, this paragraph of this Guaranty shall nonetheless remain in favor
of Prevarian and shall not inure to the assignee of Landlord.

 

To the extent permitted by applicable law,
Guarantor hereby expressly waives the provisions of (a) §43.002 and §43.003 of the Texas Civil Practice and Remedies
Code, and (b) Rule 31 of the Texas Rules of Civil Procedure, to the extent such laws (or any them) are applicable to this Guaranty.

 

IN WITNESS WHEREOF, Guarantor, intending to be legally bound
hereby, has caused this Guaranty to be executed by its duly authorized officer as of May 24, 2012.

 

	 	KINDRED HEALTHCARE, INC.,
	 	a Delaware corporation
	 	 	 	 	 
	 	By:	/s/ Cristina E.O’Brien
	 	 	Name:	Cristina E.O’Brien
	 	 	Title:	Vice President and Real Estate Counsel

 

    	Corporate Guaranty  – Page 82017-09-29 EX 10_47_5

		
			REVOLVING LINE OF CREDIT AGREEMENT
		

		
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			REVOLVING LINE OF CREDIT AGREEMENT (this "Agreement"), dated as of      August 23, 2017                 , between CHUGACH ELECTRIC ASSOCIATION, INC. ("Borrower"), a corporation organized and existing under the laws of the State of Alaska, and NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION ("CFC"), a cooperative association organized and existing under the laws of the District of Columbia.
		

		
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			RECITALS
		

		
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			WHEREAS, the Borrower has applied to CFC for a line of credit for the purposes set forth in Schedule 1 hereto, and CFC is willing to extend such a line of credit to the Borrower on the terms and conditions stated herein.
		

		
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			NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto agree and bind themselves as follows:
		

		
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			ARTICLE I
		

		
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			DEFINITIONS
		

		
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			Section 1.01  For purposes of this Agreement, the following capitalized terms shall have the following meanings (such definitions to be equally applicable to the singular and the plural form thereof).  
		

		
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			"Advance" shall mean each advance of funds by CFC to the Borrower pursuant to the terms and conditions of this Agreement.
		

		
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			"Business Day" shall mean any day that both CFC and the depository institution CFC utilizes for funds transfers hereunder are open for business.
		

		
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			"CFC Commitment" shall have the meaning ascribed to it in Schedule 1 hereto.
		

		
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			"CFC Line of Credit Rate" shall mean the rate published by CFC from time to time, by electronic or other means, for similarly classified lines of credit, but if not published, then the rate determined for such lines of credit by CFC from time to time.
		

		
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			“Default Rate” shall mean a rate per annum equal to the interest rate in effect for an Advance plus two hundred (200) basis points.
		

		
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			“Effective Date” shall mean the date designated as such by CFC on the signature page hereof.
		

		
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			“Event of Default” shall have the meaning as described in Article VI hereof.
		

		
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			“GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time.
		

		
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			“Governmental Authority” shall mean the government of the United States of America, any other nation or government, any state or other political subdivision thereof, whether state or 
		

		 

		

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		local, and any agency, authority, instrumentality, regulatory body, court or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.
		

		
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			“Lien” shall mean any statutory or common law consensual or non-consensual mortgage, pledge, security interest, encumbrance, lien, right of set off, claim or charge of any kind, including, without limitation, any conditional sale or other title retention transaction, any lease transaction in the nature thereof and any secured transaction under the Uniform Commercial Code.
		

		
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			"Line of Credit" shall mean the line of credit extended by CFC to the Borrower, pursuant to this Agreement, in an aggregate principal amount outstanding at any time not to exceed the CFC Commitment.
		

		
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			“Loan Documents” shall mean this Agreement and all other documents or instruments executed, delivered or executed and delivered by the Borrower and evidencing, governing or otherwise pertaining to the Line of Credit.
		

		
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			"Maturity Date" shall mean the date set forth in Schedule 1 hereto.
		

		
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			“Obligations” shall mean any and all liabilities, obligations or indebtedness owing by the Borrower to CFC, of any kind or description, irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.
		

		
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			“Person” shall mean natural persons, sole proprietorships, cooperatives, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, associations, companies, trusts or other organizations, irrespective of whether they are legal entities, and Governmental Authorities.
		

		
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			ARTICLE II
		

		
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			REPRESENTATIONS AND WARRANTIES
		

		
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			Section 2.01  The Borrower represents and warrants to CFC that as of the date of this Agreement:
		

		
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			A.Good Standing.  The Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, is duly qualified to do business and is in good standing in those states in which it is required to be qualified to conduct its business. 
		

		
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			B.Authority; Validity.  The Borrower has the power and authority to enter into this Agreement; to make the borrowing hereunder; to execute and deliver all documents and instruments required hereunder and to incur and perform the obligations provided for herein, all of which have been duly authorized by all necessary and proper action; and no consent or approval of any Person, including, as applicable and without limitation, members of the Borrower, which has not been obtained is required as a condition to the validity or enforceability hereof or thereof.
		

		

		

		 

		

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			This Agreement is, and when fully executed and delivered will be, legal, valid and binding upon the Borrower and enforceable against the Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity.
		

		
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			C.No Conflicting Agreements.  The execution and delivery of the Loan Documents and performance by the Borrower of the obligations thereunder, and the transactions contemplated hereby or thereby, will not: (i) violate any provision of law, any order, rule or regulation of any court or other Governmental Authority, any award of any arbitrator, the articles of incorporation or bylaws of the Borrower, or any indenture, contract, agreement, mortgage, deed of trust or other instrument to which the Borrower is a party or by which it or any of its property is bound; or (ii) be in conflict with, result in a breach of or constitute (with due notice and/or lapse of time) a default under, any such award, indenture, contract, agreement, mortgage, deed of trust or other instrument, or result in the creation or imposition of any Lien upon any of the property or assets of the Borrower.
		

		
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			The Borrower is not in default in any material respect under any agreement or instrument to which it is a party or by which it is bound and no event or condition exists which constitutes a default, or with the giving of notice or lapse of time, or both, would constitute a default under any such agreement or instrument.
		

		
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			D.Taxes.  The Borrower has filed or caused to be filed all federal, state and local tax returns which are required to be filed and has paid or caused to be paid all federal, state and local taxes, assessments, and Governmental Authority charges and levies thereon, including interest and penalties to the extent that such taxes, assessments, and Governmental Authority charges and levies have become due, except for such taxes, assessments, and Governmental Authority charges and levies which the Borrower is contesting in good faith by appropriate proceedings for which adequate reserves have been set aside. 
		

		
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			E.Licenses and Permits.  The Borrower has duly obtained and now holds all licenses, permits, certifications, approvals and the like necessary to own and operate its property and business that are required by Governmental Authorities and each remains valid and in full force and effect.
		

		
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			F.Litigation.  There are no outstanding judgments, suits, claims, actions or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its properties which, if adversely determined, either individually or collectively, would have a material adverse effect upon the business, operations, prospects, assets, liabilities or financial condition of the Borrower.  The Borrower is not, to the Borrower’s knowledge, in default or violation with respect to any judgment, order, writ, injunction, decree, rule or regulation of any Governmental Authority which would have a material adverse effect upon the business, operations, prospects, assets, liabilities or financial condition of the Borrower.
		

		
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			G.Financial Statements.  The balance sheet of the Borrower as at the date identified in Schedule 1 hereto, the statement of operations of the Borrower for the period ending on said date, and the interim financial statements of the Borrower, all heretofore furnished to CFC, are complete and correct.  Said balance sheet fairly presents the financial condition of the Borrower as at said date and said statement of operations fairly reflects its operations for the period ending on said date.  The Borrower has no contingent obligations or extraordinary forward or long-term commitments except as specifically stated in said balance
		

		

		

		 

		

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		sheet or herein.  There has been no material adverse change in the financial condition or operations of the Borrower from that set forth in said financial statements except changes disclosed in writing to CFC prior to the date hereof.   
		

		
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			H.Required Approvals.  No license, consent or approval of any Governmental Authority is required to enable the Borrower to enter into this Agreement, or to perform any of its Obligations provided for herein, including without limitation (and if applicable), that of any state public utilities commission, any state public service commission, and the Federal Energy Regulatory Commission.
		

		
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			I.Compliance With Laws.  The Borrower is in compliance, in all material respects, with all applicable requirements of law and all applicable rules and regulations of each Governmental Authority.
		

		
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			J.Disclosure.  To the Borrower’s knowledge, information and belief, neither this Agreement nor any document, certificate or financial statement furnished to CFC by or on behalf of the Borrower in connection herewith (all such documents, certificates and financial statements, taken as a whole) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements contained herein and therein not misleading.
		

		
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			ARTICLE III
		

		
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			CREDIT TERMS
		

		
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			Section 3.01Advances. CFC agrees to advance funds to the Borrower pursuant to the terms and conditions hereof, provided, however, that the principal amount at any time outstanding under this Agreement shall not exceed the CFC Commitment.  The Borrower may borrow, repay and reborrow funds at any time or from time to time from the Effective Date up to, but not including, the Maturity Date, at which time all principal amounts outstanding, and accrued, but unpaid interest thereon, shall be due and payable in full.
		

		
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			Section 3.02Payment and Interest Rate.  The Line of Credit shall be payable and bear interest as follows:
		

		
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			A.Interest Rate and Payment.  The Borrower unconditionally promises and agrees to pay, as and when due, interest on all amounts advanced hereunder from the date of each Advance and to repay all amounts advanced hereunder with interest on the Maturity Date, if not sooner paid.  Interest shall be due and payable in accordance with CFC's regular billing cycles as may be in effect from time to time.  As of the date hereof, interest shall be due and payable on the last day of each of March, June, September and December.  CFC shall provide reasonable prior written notice to the Borrower of any change to the billing cycle or due dates for the payment of interest.   CFC shall invoice the Borrower at least five days prior to the due date of any interest payment, provided, however, that CFC's failure to timely send an invoice with respect to any interest payment shall not constitute a waiver by CFC or be deemed to relieve the Borrower of its obligation to make such payment as provided for herein or to repay all amounts advanced hereunder in full with accrued interest as provided for herein.  All amounts shall be payable at CFC's main office at 20701 Cooperative Way, Dulles, VA 20166 or at such other location as designated by CFC from time to time.  The interest rate on all Advances will be equal to the CFC Line of Credit Rate in effect from time to time.  Interest will be computed on the basis of a 365 day year for the actual number of days that any Advance is outstanding.  The effective
		

		

		

		 

		

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		date of an interest rate adjustment will be determined from time to time by CFC and shall remain in effect until any subsequent change in the interest rate occurs.
		

		
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			B.Application of Payments.  Each payment shall be applied to the Obligations, first to any fees, costs, expenses or charges other than interest or principal then due on the Borrower’s indebtedness to CFC, second to interest accrued and the balance to principal.
		

		
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			Section 3.03  Paydown Requirement. For each 12-month period while this Agreement is in effect, Borrower shall, for a period of at least five consecutive Business Days, pay down the entire outstanding principal balance on this line of credit (“Paydown”).  Borrower shall make the initial Paydown within 360 days of the first Advance hereunder, and shall make each subsequent Paydown within 360 days of the date of the first Advance following each Paydown.
		

		
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			Section 3.04  RESERVED
		

		
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			Section 3.05  Mandatory Prepayment.  If there is a change in the Borrower’s corporate structure (including without limitation by merger, consolidation, conversion or acquisition), then upon the effective date of such change, (a) the Borrower shall no longer have the ability to request, and CFC shall have no obligation to make, Advances hereunder and (b) the Borrower shall prepay the outstanding principal balance of all Obligations, together with any accrued but unpaid interest thereon, any unpaid costs or expenses provided for herein, and a prepayment premium as set forth in any agreement between the Borrower and CFC with respect to any such Obligation or, if not specified therein, as prescribed by CFC pursuant to its policies of general application in effect from time to time.
		

		
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			Notwithstanding the foregoing, if after giving effect to such change in the Borrower’s corporate structure, Borrower, or its successor in interest, is engaged in the furnishing of electric utility services to its members and is organized as a cooperative, nonprofit corporation, public utility district, municipality, or other public governmental body, Borrower shall retain the ability to request, and CFC shall retain the obligation to make, Advances hereunder and no prepayment shall be required under this Section 3.05.
		

		
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			Section 3.06  Termination and Cancellation of Existing Agreement.  Borrower agrees that its existing line(s) of credit No(s). AK008-R-5107 with CFC, if any, and any agreement(s) relating thereto shall be terminated and any outstanding principal, interest and other amounts outstanding thereunder shall be transferred to the line of credit established pursuant to this Agreement and deemed an Advance hereunder.
		

		
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			Section 3.07  Default Rate.  If Borrower defaults on its obligation to make a payment due hereunder by the applicable date payment is due, and such default continues for thirty (30) days thereafter, then beginning on the thirty-first (31st) day after the payment is due and for so long as such default continues, Advances shall bear interest at the Default Rate.
		

		
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			ARTICLE IV
		

		
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			CONDITIONS OF LENDING
		

		
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			Section 4.01    Conditions Precedent to Closing.  The obligation of CFC to make Advances hereunder shall not become effective until the date on which the following conditions precedent have been satisfied:
		

		

		

		 

		

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			A.Legal Matters.  All legal matters incident to the consummation of the transactions hereby contemplated shall be satisfactory to counsel for CFC.
		

		
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			B.Representations and Warranties.  The representations and warranties contained in Article II shall be true on the date hereof.
		

		
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			C.Closing Deliverables.  CFC shall have been furnished with the following, in form and substance satisfactory to CFC:
		

		
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			(I)Documents.  (a) the executed Loan Documents, (b) certified copies of all such organizational documents and proceedings of the Borrower authorizing the transactions hereby contemplated as CFC shall require and (c) all other such documents as CFC may reasonably request.
		

		
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			(II)Government Approvals.  True and correct copies of all certificates, authorizations, consents, permits and licenses from Governmental Authorities necessary for the execution or delivery of the Loan Documents or performance by the Borrower of the obligations thereunder.
		

		
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			D.Special Conditions of Closing.  CFC shall be fully satisfied that the Borrower has complied with all special conditions of closing identified in Schedule 1 hereto.
		

		
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			Section 4.02    Conditions to Advances.  The obligation of CFC to make each Advance hereunder is additionally subject to satisfaction of the following conditions:
		

		
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			A.Requisitions.  The Borrower will requisition each Advance by submitting its requisition to CFC in form and substance satisfactory to CFC no later than 12:00 noon local time at CFC’s offices in Dulles, Virginia on the Business Day prior to the Business Day Borrower seeks to have funds advanced.  
		

		
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			CFC may require the Borrower to submit such additional information as it may reasonably require prior to funding the Advance request.
		

		
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			B.Representations and Warranties; Default.  The representations and warranties contained in Article II shall be true on the date of the making of each Advance hereunder with the same effect as though such representations and warranties had been made on such date; no Event of Default and no event which, with the lapse of time or the notice and lapse of time would become such an Event of Default, shall have occurred and be continuing or will have occurred after giving effect to each Advance on the books of the Borrower; there shall have occurred no material adverse change in the business or condition, financial or otherwise, of the Borrower; and nothing shall have occurred which in the opinion of CFC materially and adversely affects the Borrower's ability to perform its obligations hereunder.
		

		
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			C.Special Conditions of Advances.  CFC shall be fully satisfied that the Borrower has complied with all special conditions to advance identified in Schedule 1 hereto.
		

		

		

		 

		

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			ARTICLE V
		

		
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			COVENANTS
		

		
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			Section 5.01  The Borrower covenants and agrees with CFC that until payment in full of the Line of Credit and performance of all obligations of the Borrower hereunder:
		

		
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			A.Use of Proceeds.  The Borrower shall use the proceeds of this Line of Credit solely for the purposes identified on Schedule 1 hereto.
		

		
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			B.Notice.  The Borrower shall promptly notify CFC in writing of:
		

		
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				 (i)
			

			
	
			
			any material adverse change in the business, operations, prospects, assets, liabilities or financial condition of the Borrower or its subsidiaries; and

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			the institution or threat of any litigation or administrative proceeding of any nature involving the Borrower or any subsidiary which could materially affect the business, operations, prospects, assets, liabilities or financial condition of the Borrower or any subsidiary;

		
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				 (iii)
			

			
	
			
			the occurrence of an Event of Default hereunder, or any event that, with the giving of notice or lapse of time, or both, would constitute an Event of Default.

		
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			C.Default Notices.  Upon receipt of any notices with respect to a default by the Borrower or any subsidiary under the terms of any evidence of any indebtedness with parties other than CFC or of any loan agreement, mortgage or other agreement relating thereto, the Borrower shall, and shall cause each subsidiary to, deliver copies of such notice to CFC.
		

		
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			D.Financial Books; Financial Reports; Right of Inspection.  The Borrower will at all times keep, and safely preserve, proper books, records and accounts in which full and true entries will be made of all of the dealings, business and affairs of the Borrower, in accordance with GAAP.  The Borrower will cause to be prepared and furnished to CFC within one hundred twenty (120) days of the end of each of the Borrower’s fiscal years during the term hereof, a full and complete consolidated and consolidating report of its financial condition and statement of its operations as of the end of such fiscal year, audited and certified by independent certified public accountants nationally recognized or otherwise satisfactory to CFC and accompanied by a report of such audit in form and substance satisfactory to CFC, including without limitation a consolidated and consolidating balance sheet and the related consolidated and consolidating statements of income and cash flow. CFC, through its representatives, shall at all times during reasonable business hours and upon prior notice have access to, and the right to inspect and make copies of, any or all books, records and accounts, and any or all invoices, contracts, leases, payrolls, canceled checks, statements and other documents and papers of every kind belonging to or in the possession of the Borrower or in any way pertaining to its property or business.
		

		
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			E.Compliance With Laws.  The Borrower and each subsidiary shall remain in compliance, in all material respects, with all applicable requirements of law and applicable rules and regulations of each Governmental Authority, whose violation would have a material adverse 
		

		

		

		 

		

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			effect upon the business, operations, prospects, assets, liabilities or financial condition of the Borrower.
		

		
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			F.Taxes. The Borrower shall pay, or cause to be paid all taxes, assessments or Governmental Authority charges lawfully levied or imposed on or against it and its properties prior to the time they become delinquent, except for any taxes, assessments or charges that are being contested in good faith and with respect to which adequate reserves as determined in good faith by Borrower have been established and are being maintained.
		

		
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			G.Special Covenants. The Borrower will comply with any special covenants identified in Schedule 1 hereto.
		

		
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			ARTICLE VI
		

		
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			EVENTS OF DEFAULT
		

		
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			Section 6.01  The following shall be “Events of Default” under this Agreement:
		

		
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			A.Representations and Warranties. Any representation or warranty made by the Borrower herein, or in any of the other Loan Documents, or in any certificate or financial statement furnished to CFC hereunder or under any of the other Loan Documents shall prove to be false or misleading in any material respect.
		

		
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			B.Payment.  The Borrower shall fail to pay (whether upon stated maturity, by acceleration, or otherwise) any principal, interest, premium (if any) or other amount payable under the Line of Credit within five (5) Business Days after the due date thereof.
		

		
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			C.Other Covenants.    
		

		
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			(i)      No Grace Period.    Failure of the Borrower to observe or perform any covenant or agreement contained in Sections 5.01.A, 5.01.C, 5.01.D, or 5.01.G, of this Agreement.
		

		
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			(ii)    Thirty Day Grace Period.  Failure of the Borrower to observe or perform any other covenant or agreement contained in this Agreement or any of the other Loan Documents, which shall remain unremedied for thirty (30) calendar days after written notice thereof shall have been given to the Borrower by CFC.
		

		
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			D.Legal Existence, Permits and Licenses.  The Borrower shall forfeit or otherwise be deprived of (i) its authority to conduct business in the jurisdiction in which it is organized or in any other jurisdiction where such authority is required in order for the Borrower to conduct its business in such jurisdiction or (ii) permits, easements, consents or licenses required to carry on any material portion of its business.
		

		
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			E.Other CFC Obligations.  The Borrower shall be in breach or default of any Obligation, which breach or default continues uncured beyond the expiration of any applicable grace period. 
		

		
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			F.Other Obligations.  The Borrower shall (i) fail to make any payment of any principal, premium or any other amount due or interest on any indebtedness (other than indebtedness related to trade payables arising in the ordinary course of business of the 
		

		 

		

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		Borrower) with parties other than CFC which shall remain unpaid beyond the expiration of any applicable grace period, or (ii) be in breach or default with respect to any other term of any evidence of any other indebtedness exceeding $500,000.00 with parties other than CFC or of any loan agreement, mortgage or other agreement relating thereto which breach or default continues uncured beyond the expiration of any applicable grace period, if the effect of such failure, default or breach is to cause the holder or holders of that indebtedness to cause that indebtedness to become or be declared due prior to its stated maturity (upon the giving or receiving of notice, lapse of time, both or otherwise).
		

		
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			G.Involuntary Bankruptcy.  An involuntary case or other proceeding shall be commenced against the Borrower seeking liquidation, reorganization or other relief with respect to it or its debts under bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property and such involuntary case or other proceeding shall continue without dismissal or stay for a period of sixty (60) consecutive days; or an order for relief shall be entered against the Borrower under the federal bankruptcy laws or applicable state law as now or hereafter in effect.  
		

		
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			H.Insolvency.  The Borrower shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall admit in writing its inability to, or be generally unable to, pay its debts as they become due, or shall take any action to authorize any of the foregoing. 
		

		
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			I.Dissolution or Liquidation.  Other than as provided in subsection H. above, the dissolution or liquidation of the Borrower, or failure by the Borrower promptly to forestall or remove any execution, garnishment or attachment of such consequence as will impair its ability to continue its business or fulfill its obligations and such execution, garnishment or attachment shall not be vacated within sixty (60) consecutive days.  
		

		
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			J.Material Adverse Change.  Any material adverse change in the business or condition, financial or otherwise, of the Borrower or any subsidiary that would materially impair the ability of the Borrower to perform its obligations under the Loan Documents.
		

		
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			K.Monetary Judgment.  The Borrower shall suffer any money judgment not covered by insurance, writ or warrant of attachment or similar process involving an amount in excess of $500,000.00 and shall not discharge, vacate, bond or stay the same within a period of sixty (60) consecutive days.
		

		
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			L. Nonmonetary Judgment.  One or more nonmonetary judgments or orders (including, without limitation, injunctions, writs or warrants of attachment, garnishment, execution, distraint, replevin or similar process) shall be rendered against the Borrower that, either individually or in the aggregate, could reasonably be expected to have a material adverse effect upon the business, operations, prospects, assets, liabilities or financial condition of the Borrower.
		

		
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			ARTICLE VII
		

		 

		

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			REMEDIES
		

		
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			Section 7.01    If any Event of Default shall occur after the date of this Agreement and shall not have been remedied within the applicable grace period therefor, then in every such event (other than an event described in Section 6.01.G, 6.01.H or 6.01.I) and at any time during the continuance of such event, CFC may: 
		

		
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			(a)       Cease making Advances hereunder;
		

		
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			(b)       Declare all unpaid principal outstanding on the Line of Credit, all accrued and unpaid interest thereon, and all other Obligations to be immediately due and payable and the same shall thereupon become immediately due and payable without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived;
		

		
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			(c)       Exercise rights of setoff or recoupment and apply any and all amounts held, or hereafter held, by CFC or owed to the Borrower or for the credit or account of the Borrower against any and all of the Obligations of the Borrower now or hereafter existing hereunder or under the Line of Credit, including, but not limited to, patronage capital allocations and retirements, money due to the Borrower from equity certificates purchased from CFC, and any membership or other fees that would otherwise be returned to the Borrower.  The rights of CFC under this section are in addition to any other rights and remedies (including other rights of setoff or recoupment) which CFC may have.  The Borrower waives all rights of setoff, deduction, recoupment or counterclaim;
		

		
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			(d)       Pursue all rights and remedies available to CFC, including, but not limited to, a suit for specific performance, injunctive relief or damages; and 
		

		
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			(e)       Pursue any other rights and remedies available to CFC at law or in equity.
		

		
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			If any Event of Default described in Section 6.01.G, 6.01.H or 6.01.I shall occur after the date of this Agreement, then CFC's commitment to make Advances hereunder shall automatically terminate and the unpaid principal outstanding hereunder, all accrued and unpaid interest thereon, and all other Obligations shall thereupon become immediately due and payable without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived.  In addition, CFC may pursue all rights and remedies available to CFC that are contemplated by the Loan Documents in the manner, upon the conditions, and with the effect provided in the Loan Documents, including, but not limited to, a suit for specific performance, injunctive relief or damages and any other rights and remedies available to CFC at law or in equity.
		

		
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			Nothing herein shall limit the right of CFC to pursue all rights and remedies available to a creditor following the occurrence of an Event of Default.  Each right, power and remedy of CFC shall be cumulative and concurrent, and recourse to one or more rights or remedies shall not constitute a waiver of any other right, power or remedy.
		

		
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		ARTICLE VIII
		

		
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			MISCELLANEOUS
		

		
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			Section 8.01Notices.  All notices, requests and other communications provided for herein including, without limitation, any modifications of, or waivers, requests or consents under, this Agreement shall be given or made in writing (including, without limitation, by facsimile) and delivered to the intended recipient at the "Address for Notices" specified below; or, as to any party, at such other address as shall be designated by such party in a notice to each other party. All such communications shall be deemed to have been duly given (a) when personally delivered including, without limitation, by overnight mail or courier service, (b) in the case of notice by United States mail, certified or registered, postage prepaid, return receipt requested, upon receipt thereof, or (c) in the case of notice by facsimile, upon transmission thereof, provided such transmission is promptly confirmed by either of the methods set forth in clauses (a) or (b) above in each case given or addressed as provided for herein. The Address for Notices of each of the respective parties is as follows:
		

		
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						The Borrower:

				
	
					
						﻿

				
	
					
						The address set forth in 

				
	
					
						Schedule 1 hereto

				
	
					
						﻿

				
	
					
						CFC:

				
	
					
						﻿

				
	
					
						National Rural Utilities Cooperative Finance Corporation:

				
	
					
						20701 Cooperative Way

				
	
					
						Dulles, Virginia 20166

				
	
					
						Attention:  General Counsel

				
	
					
						Fax # 866-230-5635

				

		
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			Section 8.02Expenses.  The Borrower shall reimburse CFC for any reasonable costs and out‐of‐pocket expenses paid or incurred by CFC (including, without limitation, reasonable fees and expenses of outside attorneys, paralegals and consultants) for all actions CFC takes, (a) to enforce the payment of any Obligation or in preparation for such enforcement, (b) to restructure any of the Obligations, (c) to review, approve or grant any consents or waivers hereunder, (d) to prepare, negotiate, execute, deliver, review, amend or modify this Agreement, and (e) to prepare, negotiate, execute, deliver, review, amend or modify any other agreements, documents and instruments deemed necessary or appropriate by CFC in connection with any of the foregoing.
		

		
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			The amount of all such expenses identified in this Section 8.02 shall be payable upon demand, and if not paid, shall accrue interest at the then prevailing CFC Line of Credit Rate plus two hundred (200) basis points.
		

		
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			Section 8.03Late Payments.  If payment of any amount due hereunder is not received at CFC's office in Dulles, Virginia or such other location as CFC may designate to the Borrower, within five (5) Business Days after the due date thereof, the Borrower will pay to CFC, in addition to all other amounts due under the terms of the Loan Documents, any late payment charge as may be fixed by CFC from time to time pursuant to its policies of general application as in effect from time to time.
		

		

		

		 

		

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			Section 8.04Non-Business Day Payments.  If any payment to be made by the Borrower hereunder shall become due on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing any interest in respect of such payment.
		

		
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			Section 8.05Filing Fees.  To the extent permitted by law, the Borrower agrees to pay all expenses of CFC (including the reasonable fees and expenses of its counsel) in connection with the filing, registration or recordation of any instruments as may be required by CFC in connection with this Agreement, including, without limitation, all documentary stamps, recordation and transfer taxes and other costs and taxes incident to execution, filing, registration, recordation or perfection of any document or instrument in connection herewith.  The Borrower agrees to save harmless and indemnify CFC from and against any liability resulting from the failure to pay any required documentary stamps, recordation and transfer taxes, recording costs, or any other expenses incurred by CFC in connection with this Agreement.  The provisions of this subsection shall survive the execution and delivery of this Agreement and the payment of all other amounts due hereunder.
		

		
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			Section 8.06CFC Accounts. Borrower agrees that the records of, and all computations by, CFC (in whatever media they are recorded or maintained) as to the amount of principal, interest and fees due on the Line of Credit shall be conclusive in the absence of manifest error.
		

		
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			Section 8.07Waiver; Modification.  No failure on the part of CFC to exercise, and no delay in exercising, any right or power hereunder or under the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise by CFC of any right hereunder, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  No modification or waiver of any provision of this Agreement or the other Loan Documents and no consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be in writing by the party granting such modification, waiver or consent, and then such modification, waiver or consent shall be effective only in the specific instance and for the purpose for which given.
		

		
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			SECTION 8.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.
		

		
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			(A) THE PERFORMANCE AND CONSTRUCTION OF THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF VIRGINIA.
		

		
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			(B) THE BORROWER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES COURTS LOCATED IN VIRGINIA AND OF ANY STATE COURT SO LOCATED FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  THE BORROWER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTIONS THAT IT MAY NOW OR HEREAFTER HAVE TO THE ESTABLISHING OF THE VENUE OF ANY SUCH PROCEEDINGS BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
		

		

		

		 

		

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			(C) THE BORROWER AND CFC EACH 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 AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
		

		
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			SECTION 8.09 INDEMNIFICATION.  THE BORROWER HEREBY INDEMNIFIES AND AGREES TO HOLD HARMLESS, AND DEFEND CFC AND ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS AND REPRESENTATIVES (EACH AN “INDEMNITEE”) FOR, FROM, AND AGAINST ALL CLAIMS, DAMAGES, LOSSES, LIABILITIES, COSTS, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, COSTS AND EXPENSES OF LITIGATION AND REASONABLE ATTORNEYS’ FEES) ARISING FROM ANY CLAIM OR DEMAND IN RESPECT OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS DESCRIBED IN THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ARISING AT ANY TIME, WHETHER BEFORE OR AFTER PAYMENT AND PERFORMANCE OF ALL OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS IN FULL, EXCEPTING ANY SUCH MATTERS ARISING SOLELY FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF CFC OR ANY INDEMNITEE.  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN SECTION 8.11 HEREOF, THE OBLIGATIONS IMPOSED UPON THE BORROWER BY THIS SECTION SHALL SURVIVE THE REPAYMENT OF THE LINE OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.
		

		
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			Section 8.10Complete Agreement.  This Agreement, together with any schedules and exhibits hereto and the other Loan Documents, and the other agreements and matters referred to herein or by their terms referring hereto, is intended by the parties as a final expression of their agreement and is intended as a complete statement of the terms and conditions of their agreement.  In the event of any conflict in the terms and provisions of this Agreement and any other Loan Documents, the terms and provisions of this Agreement shall control.
		

		
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			Section 8.11Survival; Successors and Assigns.  All covenants, agreements, representations and warranties of the Borrower which are contained in this Agreement shall survive the execution and delivery to CFC of the Loan Documents and the making of the Advances hereunder and shall continue in full force and effect until all of the obligations under the Loan Documents have been paid in full. All covenants, agreements, representations and warranties of the Borrower which are contained in this Agreement shall inure to the benefit of the successors and assigns of CFC.  The Borrower shall not have the right to assign its rights or obligations under this Agreement.
		

		
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			Section 8.12Use of Terms.  The use of the singular herein shall also refer to the plural, and vice versa.
		

		
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			Section 8.13Headings.  The headings and sub-headings contained in this Agreement are intended to be used for convenience only and do not constitute part of this Agreement.
		

		
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			Section 8.14Severability.  If any term, provision or condition, or any part thereof, of this Agreement or the other Loan Documents shall for any reason be found or held invalid or unenforceable by any court of competent jurisdiction or other Governmental Authority, such invalidity or unenforceability shall not affect the remainder of such term, provision or condition nor any other term, provision or condition, and this Agreement and the other Loan Documents
		

		

		

		 

		

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			shall survive and be construed as if such invalid or unenforceable term, provision or condition had not been contained therein.
		

		
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			Section 8.15Binding Effect.  This Agreement shall become effective when it shall have been executed by both the Borrower and CFC and thereafter shall be binding upon and inure to the benefit of the Borrower and CFC and their respective successors and assigns.
		

		
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			Section 8.16Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which together will constitute one and the same document.  Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document.
		

		
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			Section 8.17Schedule 1.  Schedule 1 attached hereto is an integral part of this Agreement.
		

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

		
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						CHUGACH ELECTRIC ASSOCIATION, INC.

				
	
					
						(SEAL)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Lee D. Thibert

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Chief Executive Officer

				
	
					
						Attest:

					
					
						/s/ James Henderson

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Secretary

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						NATIONAL RURAL UTILITIES COOPERATIVE

				
	
					
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						FINANCE CORPORATION

				
	
					
						(SEAL)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
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						By:

					
					
						/s/ Ann Shankroff

				
	
					
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						Assistant Secretary - Treasurer

				
	
					
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						Ann Shankroff

				
	
					
						Attest:

					
					
						/s/ Paula Z. Kramp

					
					
						PAULA Z. KRAMP

				
	
					
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						Assistant Secretary - Treasurer

					
					
						 

					
					
						 

				

		
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			Effective Date:  September 29, 2017  (to be filled in by CFC)
		

		
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			Loan Number: AK008-R-5110
		

		 

		

			CFC LOCAGMT

		

		

			AK008-R-5110(JABLONJ)

		

		

			217611-2

		

		

			 

		

 

		

			15

		

		

			 

		

		SCHEDULE 1
		

		
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			1.       The purpose of this Line of Credit is to provide funds for the Borrower's general corporate use, consistent with the Borrower's articles of incorporation, bylaws and applicable federal, state and local laws and regulations.
		

		
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			2.       The aggregate CFC Commitment shall mean $50,000,000.00.
		

		
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			3.       Maturity Date shall mean the date sixty (60) months from the Effective Date. 
		

		
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			4.       The date of the Borrower's balance sheet referred to in Section 2.01.G is December 31, 2016.
		

		
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			5.       The special conditions of closing referred to in Section 4.01.D are as follows: None
		

		
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			6.       The special conditions of advance referred to in Section 4.02.C are as follows: None
		

		
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			7.       The special covenants referred to in Section 5.01.G are as follows: None
		

		
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			8.       The address for notices to the Borrower referred to in Section 8.01 is:
		

		
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						If by personal delivery (including overnight mail or courier service):

				
	
					
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						Chugach Electric Association, Inc.

				
	
					
						5601 Electron Dr.

				
	
					
						Anchorage, AK  99518

				
	
					
						Attention: Chief Executive Officer

				
	
					
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						If by United States mail:

				
	
					
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						Chugach Electric Association, Inc.

				
	
					
						P.O. Box 196300

				
	
					
						Anchorage, AK  99519-6300

				
	
					
						Attention: Chief Executive Officer

				
	
					
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						If by facsimile: 907-762-4514 

				

		
			
		

		
			
		

		
			
		

		
			
		

		
			
		

		
			
		

		
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			CFC LOCAGMT

		

		

			AK008-R-5110(JABLONJ)

		

		

			217611-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]