Document:

EX-10.28

 Exhibit 10.28 

TERM LOAN PROMISSORY NOTE 
  

			
	$1,731,164.45	 	 Entered into May 2, 2014

Effective as of April 15, 2014

Nashville, Tennessee

FOR VALUE RECEIVED, the undersigned, AAC HOLDINGS, INC., a Nevada corporation (the “Maker”), promises to pay to
the order of RELIANT BANK (“Payee”; Payee and any subsequent holders hereof are hereinafter referred to collectively as “Holder”) at the office of the Payee at 1736 Carothers Parkway, Suite 100, Brentwood,
Tennessee 37027, or at such other place as Payee may designate to Maker in writing from time to time, the original principal sum of One Million Seven Hundred Thirty-one Thousand One Hundred Sixty-four and 45/100 Dollars ($1,731,164.45)
(“Loan”), together with interest on the outstanding principal balance hereof at the rate set forth herein and all other amounts that shall be payable herein (the “Indebtedness”), in lawful money of the United States
of America, which shall at the time of payment be legal tender in payment of all debts and dues, public and private. 
 Maker, Payee and
Holder (if applicable) shall be collectively referred to herein as the “Parties.” 
 Interest shall accrue on the outstanding
principal balance of this Note at the rate of five percent (5.0%) per annum (the “Interest Rate”) and shall be calculated on the basis of a 360-day year for actual days elapsed. 

Principal and interest of the Loan shall be payable in twelve (12) equal and consecutive monthly installments of Thirty-five Thousand
Eight Hundred Sixty-six and 79/100 Dollars ($35,855.34) (“Installment(s)”) based upon a fifty-four (54) month amortization of the outstanding principal balance and the Interest Rate. Installments shall be due and payable on the
15th day of each month during the term of this Note, commencing on the 15th day of May, 2014, and continuing monthly thereafter until the 15th day of April, 2015 (the “Maturity Date”) when any remaining principal and interest shall be paid in full. 

Beginning on the Maturity Date or from the date of the occurrence of any Event of Default (hereinafter defined), Holder shall be entitled to
charge and Maker shall pay interest at the maximum rate of interest which may be charged on the date hereof or on the date of default or on the Maturity Date, whichever is greater (the “Default Rate”). The Default Rate shall be
computed from the occurrence of Maturity Date, Default, or an Event of Default (with regard to any applicable notice or grace period) until the earlier of the date upon which the Event of Default is cured or the date upon which the Indebtedness is
paid in full. 
 Notwithstanding anything to the contrary contained herein, the effective rate of interest on the Indebtedness evidenced by
this Note shall not exceed the Default Rate. Without limiting the generality of the foregoing, in the event the interest accrued or collected hereunder results in an effective rate of interest higher than that lawfully permitted to be accrued or
collected, then such Interest Rate shall be reduced to the lawful maximum interest rate permitted to be accrued or collected by applicable law, and any amount previously paid or paid in the future which would exceed the highest lawful rate shall be
applied to a reduction of principal (without premium or penalty) and not to the payment of interest. 

  
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 In the event any Installment is paid more than ten (10) days after the day when the same is
due, then the Holder shall be entitled to collect, to the extent permitted by applicable law, a “Late Charge” in an amount equal to five percent (5.0%) of the amount of any such Installment in order to defray part of the increased
cost of collection occasioned by any such late payment as liquidated damages and not as a penalty. 
 The Indebtedness evidenced by this
Note may be prepaid in whole or in part without penalty. Any such prepayment shall be first applied to all charges and expenses owing Holder in connection with this Note, then all accrued and unpaid interest, and then to unpaid principal. Partial
principal prepayments shall be applied in the inverse order of maturity and shall not change the due dates of any payments under this Note. 

As additional consideration for this Note, Michael T. Cartwright, Jerrod N. Menz, Kirk R. Manz and American Addiction Centers, Inc.
(collectively, “Guarantor”), have each executed a Continuing Guaranty dated of even date herewith (collectively, the “Guaranty”), to which Guaranty reference is hereby made for a description of the rights of the
Holder of this Note in the Event of Default. 
 This Note shall be in default upon the occurrence of any of the following events (each, an
“Event of Default”): 
 (1) Failure to pay the Indebtedness, or any part thereof, or the payment of any other sum which may
be due and owing under any Loan Document when and as the same shall become due and payable; or 
 (2) If any warranty, covenant,
representation, agreement or statement made, furnished or contained in this Note or in any other Loan Document be false, untrue or misleading in any material respect either at the time made or furnished or becomes false, untrue or misleading at any
time thereafter during the term of this Note; or 
 (3) The occurrence of an event of default or the nonperformance, nonobservance, default,
breach or failure to timely comply, perform, observe or execute in every particular the covenants, agreements, promises, obligations, warranties and conditions set out in any Loan Document or any other instrument or agreement between Maker and
Holder with respect to any other indebtedness of Maker owed to Holder and such default is not cured within any applicable cure period; or the occurrence of an event of default or the nonperformance, nonobservance, default, breach or failure to
timely comply, perform, observe or execute in every particular the covenants, agreements, promises, obligations, warranties and conditions set out in any other agreement with any other creditor, person, or entity, whether or not related to the
Indebtedness, to which Maker is a party or that may materially affect any of Maker’s assets or that may affect Maker’s ability to pay the Indebtedness or perform under the Loan Documents; or 

  
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 (4) The filing by or against Maker of a voluntary or involuntary petition in bankruptcy; or any
such Maker’s adjudication as a bankrupt or insolvent; or the filing by Maker of any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief for itself
under any present or future federal, state or other law or regulation relating to bankruptcy, insolvency, receivership or other relief for debtors; or the making by Maker, of any general assignment for the benefit of creditors; or the admission in
writing by Maker, of its inability to pay the Indebtedness as it becomes due; or the commission by Maker, of an act of bankruptcy, unless the obligation of performance under this Agreement and/or the Loan Documents is assigned to another party
acceptable to Holder; or 
 (5) The occurrence of an event of default or the occurrence of an event which, with the passage of time or the
giving of notice, or both, would constitute an event of default under this Note or any other Loan Document; or 
 (6) Should a Material
Adverse Change occur in the financial condition of Maker; or 
 (7) The occurrence of an event of default or the nonperformance,
nonobservance, default, breach or failure to timely comply, perform, observe or execute in every particular the covenants, agreements, promises, obligations, warranties and conditions set out in any instrument or agreement between Maker and/or
Guarantor and Wells Fargo Bank and such default is not cured within any applicable cure period and/or waived by Holder; or 
 (8) Should any
of the foregoing Events of Default occur with respect to any endorser or any Guarantor of any of the Indebtedness. 
 If default be made in
the payment of an Installment due under this Note, or in the payment of any other sum which may be due and owing under any document or instrument securing this Note, then the entire principal sum outstanding, together with accrued interest thereon,
fees, charges, and costs, if any, shall, at the option of the Holder, at once become due and payable without further notice to Maker. If default be made in the performance of any other provisions herein contained, or if default occurs (other than
the payment of this Note) under any other document or instrument securing this Note, the entire principal sum outstanding, together with accrued interest thereon, fees, charges, and costs, if any, may, at the option of the Holder, after the
expiration of any applicable grace period, become due and payable without further notice to Maker. 
 Upon the occurrence of an Event of
Default and failure to cure within any applicable time period, Holder, in its sole discretion, may pursue any and all legal and equitable remedies available to it under this Note, any Loan Document and/or applicable law and said remedies shall be
cumulative and shall include, but not be limited to, suit for judgment against any Maker, endorser or guarantor; obtaining possession, appointing a receiver, sale or other disposition of any part of or all of the property, assets and interests which
are security for or collateral for the Indebtedness or which are held or owned by Holder; and the offset of any bank accounts and monies of Maker, any endorser or any guarantor on deposit with Holder. 

  
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 The validity, construction and enforceability of, and the rights and obligations of the Maker and
the Holder under this Note shall be governed by, construed and enforced in accordance with, the laws of the State of Tennessee, except to the extent that federal law is applicable to determine the maximum rate of interest chargeable hereunder. This
Note may be freely transferred by Holder. Furthermore, for the purpose of determining the rights and obligations of Maker and Holder regarding this Note, it shall be deemed a negotiable instrument under the Uniform Commercial Code, as incorporated
into applicable state law. 
 Time is of the essence of each obligation of the Maker hereunder. 

Capitalized terms used herein and not defined shall have the meaning ascribed to them in that certain Term Loan Agreement, dated and effective
of even date herewith, between Maker, Payee and Guarantor. 
 In the event any provision of this Note (or any part of any provision hereof)
is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision (or remaining part of the affected provision) of this Note; but
this Note shall be construed as if such invalid, illegal or unenforceable provision (or part thereof) had not been contained in this Note, but only to the extent it is invalid, illegal or unenforceable. 

Except as otherwise set forth herein, the Maker, for itself and its successors and assigns, and any endorser or guarantor, jointly and
severally, waives presentment, protest and demand, notice of protest, demand, dishonor and non payment of this Note, and expressly agrees that this Note, or any payment hereunder, may be extended from time to time without in any way affecting the
liability of the Maker or any endorser or guarantor hereof. 
 No failure to accelerate the Indebtedness evidenced hereby by reason of an
Event of Default hereunder, acceptance of a past due Installment or other indulgences granted from time to time, shall be construed as a novation of this Note or as a waiver of such right of acceleration or of the right of Holder thereafter to
insist upon strict compliance with the terms of this Note or to prevent the exercise of such right of acceleration or any other right granted hereunder or by applicable laws. No extension of the time for payment of the Indebtedness evidenced hereby
or any Installment due hereunder, made by agreement with any person now or hereafter liable for payment of the Indebtedness evidenced hereby, shall operate to release, discharge, modify, change or affect the original liability of Maker hereunder or
that of any other person now or hereafter liable for payment of the Indebtedness evidenced hereby, either in whole or in part, unless Holder agrees otherwise in writing. This Note may not be changed orally, but only by an agreement in writing signed
by the Parties. This Note may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same agreement. It will not be necessary, in proving this Agreement in any
proceeding, to produce or account for more than one counterpart of this Agreement. Delivery of an executed counterpart of this Agreement by facsimile transmission (fax) or email shall be equally as effective as delivery of an original executed
counterpart of this Agreement. Any Party delivering an executed counterpart of this Agreement by facsimile transmission or email also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. 

  
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 Maker and any endorser or guarantor shall not be entitled to any notices of any nature whatsoever
from Holder, except (i) with respect to matters to which this Note specifically and expressly provides for the giving of notice by Holder and (ii) with respect to matters which Holder is required by applicable law to give notice. Maker
expressly waives the right to receive any notice from Holder with respect to any matter for which this Note does not specifically and expressly provide for the giving of notice by Holder to Maker. 

Whenever pursuant to this Note (i) Holder exercises any right given it to approve or disapprove, (ii) any arrangement or term is to
be satisfactory to Holder, or (iii) any other decision, consent or determination is to be made by Holder, all such decisions and determinations made by Holder shall be in the sole discretion of Holder, except as may be otherwise expressly and
specifically provided herein. 
 The Parties hereto irrevocably consent to the jurisdiction and venue of any state or federal court located
within, or having jurisdiction over, the County of Davidson, Tennessee, for any disputes pertaining to this Note and/or the Indebtedness evidenced hereby, and agree that any case or proceeding relating to Title XI of the United States Code and any
actions relating to the Indebtedness evidenced hereby shall be litigated in such courts, and the Parties waive any objection which they may have based on improper venue or forum non conveniens to the conduct of any proceeding in any such court. 

Maker, any co-maker, and any endorser irrevocably waives all right to trial by jury in any court in any action (a) Holder brings to
collect amounts owed to Holder under this Note; (b) alleging that Holder has (i) breached this Note or any note modified or extended by this Note, (ii) has breached any agreement relating to an extension of credit to Maker,
(iii) has breached any other agreement, express or implied, (iv) Holder or any of its officers, employees, representatives or agents have acted wrongfully, negligently, or otherwise tortiously, with respect to any maker, co-maker,
endorser, or guarantor; or (c) between the parties. This waiver of trial by jury does not waive Maker or Holder’s right to bring a lawsuit that a judge, without a jury, would decide. To the extent that any court of competent jurisdiction
determines that such a jury waiver is inapplicable or unenforceable with respect to any claim or dispute, such claim or dispute shall be submitted to and settled by final and binding arbitration under the Federal Arbitration Act or other applicable
law, pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Such arbitration proceedings shall be held before a single arbitrator who is an active attorney or a retired judge. 

Maker, any co-maker, and any endorser agree to pay all reasonable attorneys’ fees, expenses, court costs and all other costs of whatever
kind incurred or paid by Holder, whether or not any legal proceeding is commenced and whether or not the debt has matured or an Event of Default has occurred or is continuing or default has been declared, incident to the Indebtedness, including but
not limited to, (i) the drafting, negotiation, and preparation of this Note and all other Loan Documents and the closing of this loan; (ii) any extension, renewal, modification, amendment, consolidation, restructure, or refinancing of the
Indebtedness; (iii) the release or substitution of any collateral for the Indebtedness; (iv) obtaining consents, waivers, or approvals with respect to the Loan Documents and any collateral; (v) the review, advice and response to any
correspondence, documents or documentation submitted by or for the benefit of any Maker, 

  
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endorser, or guarantor; (vi) the perfection, validity, priority, collection, enforcement, protection and defense of any collateral and all Loan Documents executed in connection with the
Indebtedness including any mortgage, security, assignments, pledges, security interests, or liens and all other rights and obligations therein; (vii) the collection, enforcement, protection and defense of any collateral for this Note;
(viii) the perfection, validity, and priority of Holder’s interest in or collateral for this Note; (ix) representation of Holder in any bankruptcy, receivership, insolvency, administrative, judicial, or other legal proceeding
irrespective of whether or not an Event of Default has incurred or default has been declared; and (xi) all attorneys fees, expenses, costs, recording fees, taxes, and other costs of whatever kind incident to and necessary to document, record,
perfect, and continue the priority and perfection of Maker’s mortgage, security interest, assignment, pledge, or lien in any collateral. 

[Signature page follows.] 

  
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 [Signature page to Term Loan Promissory Note] 

IN WITNESS WHEREOF, Maker has caused this Note to be executed and delivered by as of the date and year first set forth above. 

 

			
	MAKER:
	
	AAC HOLDINGS, INC., a Nevada corporation
		
	By:	 	/s/ Kathryn Sevier Phillips
	Name:	 	Kathryn Sevier Phillips
	Title:	 	General Counsel and Secretary
	
	HOLDER:
	
	RELIANT BANK

 
			
		
	By:	 	/s/ Stephen Fawehinmi
		 	Stephen Fawehinmi, Vice President

 [Notary jurats follow] 

  
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 [Notary jurats page] 

STATE OF TENNESSEE                ) 

COUNTY OF RUTHERFORD        ) 

Before me, the undersigned, a Notary Public of the State and County aforesaid, personally appeared Kathryn Sevier Phillips, with whom I am
personally acquainted (or proved to me on the basis of satisfactory evidence), and who, upon oath acknowledged herself to be the General Counsel and Secretary of AAC Holdings, Inc., a Nevada corporation, the within named bargainor, and that she as
General Counsel and Secretary, executed the foregoing instrument for the purpose therein contained by signing the name of the corporation by herself as General Counsel and Secretary. 

Witness my hand and notary seal this 2nd day May, 2014. 

 

	
	/s/ Jessica R. Carrell
	Notary Public

  

			
	My commission expires: August 22, 2016	  	                            [Affix Notary Seal]

  
 8EX-10.29

 Exhibit 10.29 

CONTINUING GUARANTY 

THIS CONTINUING GUARANTY (the “Guaranty”) entered into May 2, 2014 but effective as of the 15th day of April, 2014 (“Effective Date”), by AMERICAN ADDICTION CENTERS, INC., a Nevada corporation (the “Guarantor”), in favor of RELIANT BANK with
offices located at 1736 Carothers Parkway, Suite 100, Brentwood, Tennessee 37027 (the “Lender”), in order to induce the Lender to extend credit to AAC HOLDINGS, INC., a Nevada corporation (the “Borrower”).
The Guarantor and Lender are collectively referred to herein as the “Parties” and individually as a “Party.” 

RECITALS 
 WHEREAS,
pursuant to that certain Term Loan Agreement of even date herewith (“Loan Agreement”) between the Borrower, Guarantor and Lender, Lender has agreed to loan to Borrower the principal sum of One Million Seven Hundred Thirty-one
Thousand One Hundred Sixty-four and 45/100 Dollars ($1,731,164.45) (“Loan”) for the purposes specified in the Loan Agreement; 

WHEREAS, the Loan Agreement provides that the Loan shall be repaid to Lender pursuant to that certain Term Loan Promissory Note of even date
herewith (“Note”) executed by Borrower in favor of Lender. The term “Loan Documents” for the purposes hereof shall mean the Loan Agreement, the Note and those other documents described in the Loan Agreement as
“Loan Documents”; and 
 WHEREAS, a condition to Lender’s agreement to lend the Loan to Borrower is that Guarantor must enter
into this Guaranty, without which the Lender would not lend the Loan to Borrower. 
 W I T N E S S E T H: 

As an inducement to cause Lender to extend credit to the Borrower named herein, without which Guaranty the Borrower would be unable to obtain
credit from the Lender, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor agrees with the Lender that: 

1. Definition of Obligations. As used in this Guaranty, the term “Obligations”, shall collectively mean all present
and future debts and other obligations of the Borrower (and/or any successor(s) thereof) to the Lender and Lender’s successors, successors-in-title and assigns (except as limited below; if applicable) relating to the Loan and Loan Documents,
when due, whether by acceleration or otherwise, with all interest as may accrue thereon, either before or after maturity or the occurrence of a default or Event of Default1 thereof, together with
all amendments, modifications, extensions, renewals, consolidations, refinancing, and restructures thereof, and all documents and other instruments now or hereafter, evidencing, securing, or otherwise relating to the Indebtedness, whether arising by
note, loan documents, account, credit card, indemnity, contract, tort, guaranty, overdraft, or otherwise; whether direct or indirect, absolute or contingent; whether the Indebtedness is from time to time increased, reduced, or 

 
  

	1 	 Any capitalized term used and not defined herein shall have the meaning ascribed it in the Loan Agreement.

 
entirely extinguished or re-incurred; whether or not the advances or events creating the Indebtedness are presently foreseen or are incurred with or without notice to Guarantor; and all
reasonable costs, expenses, and fees (including reasonable attorneys’ fees) paid or incurred by Lender, in endeavoring to collect the Obligations, or to enforce, protect, or defend the Obligations, or any portion thereof, or to enforce,
protect, or defend the perfection, validity, priority or enforceability of any mortgage, pledge, assignment, security interest, or lien securing the Obligations or to protect, defend, or enforce this Guaranty. 

2. Continuing, Unconditional and Absolute Guaranty. The Guarantor hereby guarantees to Lender the full and timely payment and
performance of the Obligations and agrees that the Guarantor’s guarantee of the Obligations is continuing, absolute and unconditional until the entire Obligation shall have been paid in full and discharged. The validity of this Guaranty shall
not be impaired by any event whatsoever, including, but not limited to, the financial decline or bankruptcy of the Borrower; the failure of any other party to guarantee the Obligations or to assume liability for the Obligations or to provide
collateral therefore; Lender’s failure to give Guarantor notice of default by Borrower; the unenforceability of any of the Obligations against the Borrower or any other person or entity or against any collateral for any reason; Lender’s
failure to file suit against the Borrower (regardless of whether any one of the Borrower is or is becoming insolvent, is believed to be about to leave the state or any other circumstance); the occurrence of an Event of Default and Lender’s
waiver or Lender’s failure to act as a result of such Event of Default; assumption of the Loan by any person or entity with or without release of Borrower; Lender’s declaration of default, acceleration or reinstatement of any or all of the
Obligations at any time or times in accordance with applicable law and pursuant to the Loan Documents; Lender’s failure to renew or extend any or all of the Obligations as they become due (by acceleration or otherwise); or the termination of
any relationship of Guarantor with Borrower, including, but not limited to, any relationship of employment, ownership, or commerce, or any other personal, business, or professional relationship. The Loan shall be deemed made in reliance upon the
continued operation of this Guaranty in accordance herein. The Guarantor agrees that this Guaranty shall be valid and binding upon Guarantor upon the delivery of this executed Guaranty to Lender by Guarantor or an authorized representative of
Guarantor. 
 3. Irrevocable Guaranty. Guarantor’s guarantee of the Obligations is irrevocable; provided, however, Guarantor may
at any time by written notice (“Termination Notice”) to Lender prospectively terminate the Guarantor’s liability hereunder for Obligations, first incurred after Lender’s receipt of the Termination Notice, subject to the
limitations set forth in this paragraph. After the delivery of Termination Notice to the Lender, Guarantor shall remain fully liable for all principal, interest and expenses, including reasonable attorney’s fees, for all existing Obligations
outstanding as of the time of Lender’s receipt of the Termination Notice, for all principal of the Loan until paid in full, and for all interest subsequently accruing on the Loan until paid in full. In order to effectuate any attempted
termination, the Guarantor must pay to the Lender all amounts owing hereunder, including pay in full on the Loan. The Guarantor acknowledges that it is critically important to the Borrower to obtain the commitment for the Loan and that the Lender
would not make the commitment for the Loan without this Guaranty. 

  
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 4. Primary Liability of Guarantor. This Guaranty constitutes a guarantee of payment and
performance and not of collection. The liability of Guarantor under this Guaranty shall be direct and immediate and not conditional or contingent upon the pursuit of any remedies against Borrower, any other co-Borrower, endorser, other guarantors,
or other entity or person nor against any mortgage, assignment, pledge, security interest, or lien available to Lender. Guarantor waives any right to require an action to be brought against Borrower or any other co-Borrower, endorser, Guarantor, or
other entity or person or to require that resort be had to any mortgage, assignment, pledge, security interest, or lien or against any collateral, or to any balance of any deposit account, or credit on the books of Lender in favor of Borrower or any
other person. In accordance herein, Lender may enforce this Guaranty against Guarantor for any amounts due under the Obligations or any Obligation as they become due (by acceleration or otherwise) without first making demand or instituting
collection proceedings against the Borrower in the event of a default under the Loan Documents. Guarantor’s liability for the Obligations is primary, and not secondary, and each document presently or hereafter executed by the Borrower to
evidence or secure an Obligation to Lender is incorporated herein by reference and shall be fully enforceable against Guarantor. 
 5.
Impairment of Collateral; Release of Liable Parties. Lender may, in its reasonable discretion, with or without notice to or consent from Guarantor, and with or without consideration, take or fail to take or delay taking any action of any type
whatsoever; grant extensions, indulgences, compromises, or forbearance, or release, compromise or settle with any party therefore; or waive any default or Event of Default or fail to take any action upon the occurrence of default, an Event of
Default, or upon maturity. No action which Lender shall take or fail to take in connection with the Obligations or with any Loan Documents evidencing the Obligations, or any of them, or any mortgage assignment, pledge, security interest, or lien for
the payment of the Obligations to Lender, or for the performance of any Obligations or undertakings of Borrower or any co-Borrower, endorser, Guarantor or any other guarantor, nor any course of dealing with Borrower or any other person or entity,
shall release, limit, reduce or waive Guarantors Obligations hereunder, affect this Guaranty in any way, or afford Guarantor any recourse against Lender. The defenses of impairment of collateral and impairment of recourse and any requirement of
diligence on Lender’s part in collecting the Obligations are hereby expressly waived by Guarantor. 
 6. Amendment of
Obligations. The Lender may, without notice to or the joinder of Guarantor, modify, extend, accelerate, reinstate, refinance, consolidate, restructure, or renew the Obligations (with or without the execution of new promissory notes) and grant
any consent or indulgence with respect hereto. 
 7. Waiver. Guarantor hereby waives (i) any requirement of presentment,
protest, notice of dishonor, notice of default, notice of acceptance, demand and all other actions or notices that may otherwise be required on Lender’s part in connection with the Obligations, except those required herein, in the Loan
Documents or pursuant to applicable law; (ii) all defenses of suretyship; and (iii) all rights of suretyship against Lender including, but not limited to, any right to cause Lender to initiate legal proceedings against the Borrower or any
other applicable person or entity. 
 8. Subordination; Subrogation. Guarantor agrees that the Loan made by Guarantor to Borrower and
any other obligations or debts of the Borrower to Guarantor shall be subordinate to the Obligations as to both payment and collection. Accordingly, in the event of a 

  
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default under the Loan Documents and upon proper notice by Lender to Guarantor of the same, Guarantor agrees not to accept any payment whatsoever from the Borrower or to allow any payment by the
Borrower for or to Guarantor or for Guarantor’s benefit without Lender’s prior written consent until all Obligations have been paid in full and this Guaranty has been terminated. Guarantor agrees that in the event of a bankruptcy or other
insolvency proceedings involving Borrower, if Lender so directs, Guarantor will timely file a claim for the amount of the subordinated debt, in form approved by Lender. The Guarantor agrees to pursue said claim with diligence and to comply with any
lawful instructions from Lender pertaining to the pursuit of the claim. The proceeds of any such claim shall be delivered to Lender, so long as such proceeds are not in excess of the amount of the Indebtedness. Guarantor shall not be subrogated to
any rights of Lender against Borrower or any property or other party until the Obligations have been paid in full and terminated in writing by the Lender. 

9. Application of Funds. The Lender may apply amounts received for Borrower’s account first to pay the Indebtedness, if any,
before reducing the Obligations. Without notice to or consent of Guarantor, Lender may apply all payments and credits received from Borrower or from Guarantor in such manner and in such priority as Lender in its sole judgment shall see fit to the
Obligations which are subject to this Guaranty. 
 10. Statute of Limitation. The Guarantor acknowledges that the statute of
limitation applicable to this Guaranty shall begin to run only upon Lender’s accrual of a cause of action against Guarantor caused by Guarantor’s failure to honor a demand for performance hereunder made by Lender in writing; provided,
however, if, subsequent to the demand upon Guarantor, Lender reaches an agreement with Borrower or Guarantor on any terms causing Lender to forbear in the enforcement of its demand upon Guarantor, the statute of limitation shall be reinstated and
shall run for its full duration from such time that Lender subsequently makes demand upon Guarantor. 
 11. Death of Guarantor. If
Guarantor is an individual, then, in the event of the death of Guarantor, the obligations of the Guarantor hereunder shall continue in full force and effect against Guarantor’s estate, and the executor or administrator of such estate shall be
obligated and authorized to pay such debt and otherwise honor this Guaranty, and, if acceptable to Lender, to execute renewal of Guaranties or endorsements or notes or other evidence of indebtedness, from time to time, with respect to any unpaid
Obligations hereunder. 
 12. Cancellation; Survival of Certain Obligations. The Lender may evidence its cancellation of this
Guaranty and the release of Guarantor from liability hereunder by delivering to Guarantor an instrument of release, or by delivering this Guaranty to Guarantor marked cancelled or terminated, or both. The purported cancellation hereof and release of
Guarantor shall not impair Guarantor’s continuing liability for (i) any amount of principal, interest or expenses that was mistakenly omitted by Lender in calculating the amount of the Obligations; (ii) any surviving liability of
Borrower to reimburse Lender for expenses or to indemnify Lender provided for in any document executed prior to the purported cancellation hereof evidencing or securing the Obligations; (iii) liability for avoided payments and expenses related
thereto (as provided in detail below); or (iv) any erroneous release hereof by Lender or any officer(s) of Lender. 

  
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 13. Waiver of Claim Against Borrower. Guarantor shall have no claim (as such as defined in
11 U.S.C. §101) against Borrower of any payment by Guarantor hereunder or in connection herewith, unless Guarantor’s possession of such claim would in no circumstance render a payment, hypothetical or otherwise, by Borrower to Lender,
subject to avoidance, turnover, or nullification in any regard. 
 14. Recovery of Avoided Payments. If any payments or proceeds of
collection applied by Lender to the Obligations should be challenged by a bankruptcy trustee, debtor-in-possession, creditor or other party as an avoidable transfer on the grounds that the payment constituted a preferential payment or a fraudulent
conveyance under state law, federal law, or the Bankruptcy Code or any successor or similar statute thereto or on any other grounds, Lender may, as its option and in its sole discretion, elect whether to contest such challenge. If the Lender
contests the avoidance action, all costs of the proceedings, including Lender’s reasonable attorney’s fees, will become part of the Obligations. If the contested amount, or any part thereof, is successfully avoided, the avoided amount will
become part of the Obligations hereunder. If Lender elects not to contest the avoidance action, Lender may tender the amount subject to the avoidance action to the court, bankruptcy trustee, debtor-in-possession, creditor, or other party and the
amount so tendered shall become part of the Obligations hereunder. The Guarantor’s obligation to reimburse Lender for amounts due under this paragraph shall survive the purported cancellation hereof. 

15. Financial Statement. Guarantor covenants and agrees that from the date hereof and the earlier of the payment in full of the
Obligations or the cancellation of this Guaranty, Guarantor, by and through Borrower, shall furnish, prepare, and deliver or cause to be furnished, prepared and delivered to Lender (i) current financial statements including balance sheet and
income statements by the end of the month after each quarter end in a form acceptable to Lender, (ii) a compliance certificate that evidences Guarantor’s compliance with all covenants provided in any loan documents executed by Guarantor in
connection with any loan from Wells Fargo Bank no later than the end of each quarter, (iii) audited financial statements including balance sheet and income statement prepared in reasonable detail and in conformity with GAAP, applied on a basis
consistent with that of the preceding years no later than April 15th of each calendar year during the term of the Loan, and (iv) within a reasonable period of time, such additional
information and financial statements as Lender may from time to time request. In addition, within fifteen (15) days of filing, Guarantor shall deliver to Lender, without demand, a copy of Guarantor’s Federal Income Tax Return and any gift
tax returns, all signed by Guarantor. The Guarantor warrants that Guarantor’s financial statements, all financial information and tax returns delivered to Lender hereunder are true, accurate and complete in every respect, and disclose all
direct and contingent liabilities. Guarantor warrants that no Material Adverse Change has occurred in Guarantor’s financial condition as set forth in such financial statements. 

16. Solvency of Guarantor. Guarantor warrants to Lender that Guarantor is not insolvent and that Guarantor’s execution hereof does
not render Guarantor insolvent. 
 17. No Unpaid Taxes. Guarantor warrants that Guarantor is not presently and shall not hereafter be
delinquent in the payment of any taxes imposed by any applicable governmental authority or in the filing of any tax return. Guarantor further warrants that Guarantor is not involved in a dispute with any taxing authority over tax amounts due. 

  
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 18. Consent to Jurisdiction and Venue. The Parties hereby irrevocably consent to the
jurisdiction of the United States District Court for the Middle District of Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation which concerns this Guaranty or the Obligations. It is
further agreed that venue for any such action shall lie exclusively with courts sitting in those federal and Tennessee jurisdictions named above, unless the Parties agree to the contrary in writing. Guarantor acknowledges that this paragraph is a
material inducement to the Lender in extending credit to the Borrower and in accepting this Guaranty. 
 19. Further Assurances, Etc.
Guarantor agrees to execute such additional documents as Lender may reasonably require to perfect Lender’s interest in any of Guarantor’s property securing the Obligations, if applicable. Guarantor hereby irrevocably appoints Lender as
Guarantor’s attorney-in-fact for the execution of such documents, which appointment shall automatically expire upon the satisfaction of the Indebtedness or the cancellation or termination of this Guaranty, whichever is earliest. 

20. Expenses, Costs and Attorneys’ Fees. Guarantor agrees to pay to Lender all costs and expenses (including reasonable
attorneys’ fees) paid or incurred by Lender in endeavoring to collect the Obligations or to enforce, protect, or defend the Obligations, or any portion thereof, or to enforce, protect, or defend the perfection, validity, priority, or
enforceability of any mortgage assignment, pledge, security interest, or lien, which secures the Obligations, or any portion thereof, or to enforce, collect, protect or defend the Loan or any Loan Documents, or to enforce, protect, or defend any
collateral or to collect or realize against any collateral which secures the Obligations or to enforce, collect or defend this Guaranty. 

21. Notices. Any notices, demands or communications required under, allowed by or concerning this Guaranty shall be in accordance with
the notice provisions in the Loan Agreement. 
 22. No Usury. If from any circumstances whatsoever, fulfillment of any provisions of
this Guaranty, at the time performance of such provision shall be due, shall involve transcending the limit of validity presently prescribed by any applicable usury statute or other applicable law, then ipso facto, the obligation to be fulfilled
shall be reduced to the limit of such validity so that in no event shall any extraction be possible under the Guaranty that is excess of the limit of such validity, but such obligation shall be fulfilled to the maximum limit to such validity. The
provisions of this paragraph shall control every other provision in this Guaranty. 
 23. Assignment. This Guaranty shall be binding
upon the heirs, successors and assigns of Guarantor and Lender, except that the Guarantor shall not assign any rights or delegate any obligations arising hereunder without prior written consent of Lender. Any attempted assignment or delegation by
Guarantor without the required prior written consent of Lender shall be void. 
 24. Entire Agreement; No Oral Representations Limiting
Enforcement, Loan Agreement, Etc. This Guaranty represents the entire agreement between the Parties concerning the liability of Guarantor for the Obligations and any oral statements regarding Guarantor’s liability for the Obligations have
been included in the language of this Guaranty. The 

  
 6 

 
Guarantor understands that the Lender intends to rely upon and to enforce this Guaranty and that the Guarantor must not rely upon or believe to be authorized or lawful any statement or
representation to the contrary. The Lender hereby disavows any such statement or representation by any person. Without limiting the foregoing, Guarantor acknowledges Lender’s intention to enforce this Guaranty in accordance with its terms and
to the fullest extent possible and Guarantor acknowledges that Lender has made no oral statements to Guarantor that could be construed as a waiver of Lender’s right to enforce this Guaranty in accordance with its terms by all available legal
means. 
 25. Applicable Law. This Guaranty shall be governed by the laws of the State of Tennessee. The validity, construction
and enforcement of this Guaranty and all other documents executed with respect to the Obligations shall be determined according to the substantive law of Tennessee applicable to contracts executed, delivered, and performed in that state. The
provisions hereof are subject to all applicable state and federal laws to the extent they are not effectively waived herein, and shall be read as to comply therewith. 

26. Change of Entity Name. Guarantor shall not carry on business, trade as, be known as, use as, incorporate or reorganize under any
other name or change its legal entity or current entity name without prior written notice to Lender and the prior written consent of Lender. 

27. General Provisions. The Lender’s indulgence or failure to act upon the existence of a default or event of default in any
Obligations or this Guaranty or any other course of dealing or departure from the terms of this Guaranty or any Obligations shall not prejudice Lender’s rights to make demand and recover from Guarantor in accordance with the terms hereof. The
remedies provided Lender in this Guaranty are not exclusive of any other remedies that may be available to Lender under any other document or at law or in equity. No provision of this Guaranty can be amended or waived, except by a statement in
writing signed by the Party against which enforcement of the amendment or waiver is sought. Should any provision of this Guaranty be invalid or unenforceable for any reason, the remaining provisions hereof shall remain in full effect. Words used
herein indicating gender or number shall be read as context may require. 
 28. Guarantor’s Books and Records; Lender’s Right
to Inspect. Guarantor shall at all times keep proper books and records, maintain a system of accounting that enables Guarantor to produce financial statements in accordance with generally accepted accounting principles (“GAAP”), and
maintain books and records that contain information as from time to time reasonably requested by Lender. Guarantor hereby authorizes Lender to make or cause to be made, at Guarantor’s reasonable expense and in such manner and at such times as
Lender may reasonably require, during regular business hours and upon prior written notice (i) inspections and audits of any books, records and papers in the custody or control of Guarantor, relating to Guarantor’s financial or business
conditions, including the making of copies thereof and extracts therefrom, and (ii) inspections and appraisals of any of Guarantor’s assets. Guarantor shall not modify or change its method of accounting (other than as may be required to
conform to GAAP) in any material respect or enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered into with any third party accounting firm or service bureau for the

  
 7 

 
preparation and storage of Guarantor’s or any of their subsidiaries’ or affiliates’ accounting records without such accounting firm or service bureau agreeing to provide Lender
information regarding the Guarantor’s (or subsidiaries’ or affiliates’) financial condition. 
 29. Captions Not
Controlling. Captions and headings have been included in this Guaranty for the convenience of the parties, and shall not be construed as affecting the content of the respective paragraphs. 

THE PARTIES HEREBY IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY LITIGATION, ACTION OR OTHER PROCEEDING (A) LENDER BRINGS TO ENFORCE OR COLLECT
THE OBLIGATIONS OF THIS GUARANTY; (B) ALLEGING THAT LENDER HAS BREACHED ANY DUTY, OBLIGATION OR AGREEMENT, EXPRESS OR IMPLIED, RELATING TO THE OBLIGATIONS OF THIS GUARANTY; (C) ALLEGING THAT ANY PARTY OR SUCH PARTY’S OFFICERS,
EMPLOYEES, REPRESENTATIVES, ATTORNEYS OR AGENTS HAVE ACTED WRONGFULLY, NEGLIGENTLY OR TORTIOUSLY WITH RESPECT TO THE OBLIGATIONS OF ANY BORROWER, ENDORSER OR GUARANTOR; OR (D) BETWEEN THE PARTIES RELATED HERETO. THIS WAIVER OF JURY TRIAL DOES
NOT WAIVE GUARANTOR’S OR LENDER’S RIGHT TO BRING A LAW SUIT THAT A JUDGE, WITHOUT A JURY, WOULD DECIDE. IN ADDITION, THE GUARANTOR ACKNOWLEDGES A THOROUGH UNDERSTANDING OF THE TERMS OF THIS GUARANTY AND AGREES TO BE BOUND THEREBY. 

This Guaranty is executed and delivered to Lender to as of the Effective Date. 

[Signature Page Follows] 

  
 8 

 [Signature page to Continuing Guaranty] 

 

			
	GUARANTOR:
	
	AMERICAN ADDICTION CENTERS, INC.
		
	By:	 	/s/ Michael T. Cartwright
	Name: Michael T. Cartwright
	Title: Chairman and Chief Executive Officer

 STATE OF TENNESSEE
                      ) 
 COUNTY OF RUTHERFORD
              ) 
 Before me, the undersigned, a Notary Public of the
State and County aforesaid, personally appeared Michael T. Cartwright, with whom I am personally acquainted (or proved to me on the basis of satisfactory evidence), and who, upon oath acknowledged himself to be the Chairman and Chief Executive
Officer of American Addiction Centers, Inc., a Nevada corporation, the within named bargainor, and that he as Chairman and Chief Executive Officer, executed the foregoing instrument for the purpose therein contained by signing the name of the
corporation by himself as Chairman and Chief Executive Officer. 
 Witness my hand and notary seal this 2nd day of May, 2014. 
  

	
	/s/ Jessica R. Carrell
	Notary Public

  

	 My commission expires: August 22, 2016 
	[Affix Notary Seal] 

  
 9

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