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Exhibit 10.4  

Loan No. 4128  

  
 

    GUARANTY    
    

        THIS GUARANTY (this "Guaranty"), dated as of the 31st day of December, 2003, is made by OMEGA HEALTHCARE
INVESTORS, INC., a Maryland corporation ("Guarantor"), for the benefit of GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, in its
capacity as Agent for the Lenders (as Agent and Lenders are defined in the Loan Agreement as defined below). 

RECITALS  

        A.    Financial Accommodations. Omega Acquisition Facility I, LLC, a Delaware limited liability company
("Initial Borrower"), Agent and Lenders are concurrently herewith entering into that certain Loan Agreement (the "Loan
Agreement") dated as of even date herewith pursuant to which Lenders shall extend financial accommodations to Borrowers (as defined therein). 

        B.    Inducement. To induce Lenders to extend to Borrowers the financial accommodations set forth in the Loan Agreement,
Guarantor is willing to execute and deliver this Guaranty. 

        In
consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows: 

1.     DEFINED TERMS  

        All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Loan Agreement. 

2.     THE GUARANTY  

        2.1.    Guaranty of Obligations.    Guarantor unconditionally and absolutely guarantees to
Agent and Lenders the full and prompt payment and performance when due, whether at maturity or earlier, by reason of acceleration or otherwise, and at all times thereafter, of the indebtedness,
liabilities and obligations of every kind and nature of Borrowers to Agent and/or Lenders arising under or in any way relating to the Loan Agreement or any of the other Loan Documents, howsoever
created, incurred or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, due or to become due, and howsoever owned, held or acquired by Agent and/or Lenders
(collectively, the "Obligations"), subject to and in accordance with the terms and conditions of the Loan Agreement and the other Loan Documents.
Without limitation to the foregoing, the Obligations shall include (a) all reasonable attorneys' and paralegals' fees, including the cost of inside attorneys and paralegals, costs and expenses
and all court costs and costs of appeal incurred by Agent and/or Lenders in collecting any amount due Agent and/or Lenders under this Guaranty or in prosecuting any action against any Borrower or
Guarantor with respect to all or any part of the Obligations, and (b) all interest, fees and the reasonable costs and expenses due Agent and/or Lenders after the filing of a bankruptcy petition
by or against any Borrower regardless of whether such amounts can be collected during the pendency of the bankruptcy proceedings. 

        2.2.    Continuing Guaranty; Guaranty of Payment.    This Guaranty is a continuing guaranty of
the Obligations until terminated in accordance with Section 7.17 below, and Guarantor agrees that the obligations of Guarantor to Agent and/or Lenders hereunder shall be primary obligations,
shall not be subject to any counterclaim, set-off, abatement, deferment or defense based upon any claim that Guarantor may have against Agent and/or any Lender, any Borrower or any other
person or entity. 

 

        2.3.    Liability of Guarantor Not Affected.    Until terminated in accordance with
Section 7.17 below, this Guaranty shall remain in full force and effect without regard to, and shall not be released, discharged or affected in any way by, any circumstances or condition,
including, without limitation: 

        (a)   the
attempt or the absence of any attempt by Agent and/or Lenders to obtain payment or performance by Borrowers or any other guarantor (this being a guaranty of payment
and performance and not of collection); 

        (b)   Agent's
and/or Lenders' delay in enforcing Guarantor's obligations hereunder or of any other party under the Loan Documents, or any prior partial exercise by Agent
and/or Lenders of any right or remedy hereunder or under any of the other Loan Documents; 

        (c)   any
renewal, extension, substitution, modification, replacement of or indulgence with respect to, the Obligations, all of which Agent and/or Lenders is hereby authorized
to make; 

        (d)   the
fact that Borrowers are not liable for the payment or performance of the Obligations, or any portion thereof, for any reason whatsoever (except as a result of actual
payment by Borrowers and receipt thereof by Agent), Guarantor being liable for the Obligations notwithstanding that Borrowers may not be; 

        (e)   any
sale, exchange, release, surrender or other disposition of, or realization upon, any collateral securing the Obligations, or any settlement or compromise of any
guaranties of the Obligations, or any other obligation of any person or entity with respect to the Loan Documents; 

        (f)    the
acceptance by Agent and/or Lenders of any additional security for the Obligations; 

        (g)   the
lack of validity or enforceability of, or Agent's and/or Lenders' waiver or consent with respect to, any provision of any instrument evidencing, securing or
otherwise relating to the Obligations, or any part thereof, including, without limitation, the Loan Documents; 

        (h)   the
failure by Agent and/or Lenders to take any steps to perfect, maintain, or enforce its security interests or remedies under the Loan Documents, or to preserve its
rights to or protect any security or collateral, for the Obligations; 

        (i)    any
voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement, readjustment, assignment for the benefit of creditors, composition, receivership,
liquidation, marshalling of assets and
liabilities or similar event or proceedings with respect to any Borrower or Guarantor, as applicable, or any of their respective properties (each, an "Insolvency
Proceeding"), or any action taken by Agent and/or Lenders, any trustee or receiver or by any court in any such proceeding; 

        (j)    the
failure by Agent and/or Lenders to file or enforce a claim against the estate (either in an Insolvency Proceeding or other proceeding) of any Borrower or Guarantor; 

        (k)   in
any proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.), as amended (the
"Bankruptcy Code"): (i) any election by Agent and/or Lenders under Section 1111(b)(2) of the Bankruptcy Code, (ii) any borrowing or
grant of a security interest by any Borrower as debtor-in-possession under Section 364 of the Bankruptcy Code, (iii) the inability of Agent and/or Lenders to
enforce the Obligations against any Borrower by application of the automatic stay provisions of Section 362 of the Bankruptcy Code, or (iv) the disallowance, under Section 502 of
the Bankruptcy Code, of all or any portion of Agent's and/or Lenders' claim(s) against any Borrower for repayment of the Obligations; 

        (l)    the
failure of Guarantor to receive notice of any intended disposition of the collateral for the Obligations; 

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        (m)  any
merger or consolidation of any Borrower into or with any other entity, or any sale, lease or transfer of any of the assets of any Borrower or Guarantor to any other
person or entity; 

        (n)   any
change in the ownership of any Borrower, or any change in the relationship between any Borrower and Guarantor or any termination of any such relationship; 

        (o)   the
dissolution or other change in status of any Borrower or Guarantor; 

        (p)   the
making of Advances or additional Advances to Borrowers, the increase or reduction of the maximum principal amount of the Obligations, the increase or reduction in
the interest rate provided in the Notes, or any other modification, amendment, release or waiver of the terms of the Loan Documents; 

        (q)   the
absence, impairment or loss of any right of reimbursement or subrogation or other right or remedy of Guarantor; and 

        (r)   any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of any Borrower, Guarantor or any other guarantor. 

        Guarantor
hereby expressly waives and surrenders any defense to its liability under this Guaranty based upon any of the foregoing acts, omissions, agreements, waivers or matters, whether
or not Guarantor had notice or knowledge of same. It is the purpose and intent of this Guaranty that the obligations of Guarantor hereunder shall be absolute and unconditional under any and all
circumstances. 

        2.4.    Rights of Agent and/or Lenders.    Agent and/or Lenders are hereby authorized, without
notice to or demand of Guarantor and without affecting the liability of Guarantor hereunder, to take any of the following actions from time to time in accordance with the terms and conditions of the
Loan Agreement, to the extent applicable: (a) increase or decrease the amount of, or renew, extend, accelerate or otherwise change the time for payment of, or other terms relating to, the
Obligations, or otherwise modify, amend or change the terms of any promissory note or other agreement evidencing, securing or otherwise relating to any of the Obligations, including, without
limitation, the making of additional advances thereunder; (b) modify or waive in whole or in part the conditions precedent to the making of any Advance; (c) accept and apply any payments
on or recoveries against the Obligations from any source, and any proceeds of any security therefor, to the Obligations in such manner, order and priority as Agent and/or Lenders may elect in their
sole discretion; (d) take, hold, sell, release or otherwise dispose of all or any security for the Obligations or the payment of this Guaranty; (e) settle, release, compromise, collect
or otherwise liquidate the Obligations or any portion thereof; (f) accept, hold, substitute, add or release any other guaranty or endorsements of the Obligations; and (g) at any time
after maturity of the Obligations, appropriate and apply toward payment of the Obligations (i) any indebtedness due or to become due from Agent and/or Lenders to Guarantor, and (ii) any
moneys, credits, or other property belonging to Guarantor at any time held by or coming into the possession of Agent and/or Lenders or any affiliates thereof, whether for deposit or otherwise. 

        Without
limiting the generality, scope or meaning of any of the foregoing or any other provision of this Guaranty, Guarantor: 

        (a)   acknowledges
that Section 2856 of the California Civil Code authorizes and validates waivers of a guarantor's rights of subrogation and reimbursement and certain
other rights and defenses available to Guarantor under California law; 

        (b)   waives
all rights of subrogation, reimbursement, indemnification, and contribution and all other rights and defenses that are or may become available by reason of
Sections 2787 to 2855, inclusive, of the California Civil Code; 

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        (c)   waives
all rights and defenses arising out of an election of remedies by Agent and/or Lenders, even though that election of remedies, such as a nonjudicial foreclosure
with respect to security for a guaranteed obligation, has destroyed Guarantor's rights of subrogation and reimbursement against Borrowers by the operation of Section 580d of the California Code
of Civil Procedure or otherwise; 

        (d)   waives
all rights and defenses that Guarantor may have because the Borrowers' debt is secured by real property. This means, among other things: 

	(i)
	Agent
and Lenders may collect from Guarantor without first foreclosing on any real or personal property Collateral pledged by Borrowers;

	(ii)
	If
Agent or Lenders foreclose on any real property Collateral pledged by any Borrower:

	(1)
	the
amount of the debt may be reduced only by the price for which that Collateral is sold at the foreclosure sale, even if the Collateral is worth more than the sale price; and

	(2)
	Agent
and Lenders may collect from Guarantor even if Agent and Lenders, by foreclosing on the real property Collateral, has destroyed any right Guarantor may have to collect from
Borrowers.

	(3)
	waives
all rights and defenses, if any, now or hereafter arising under the laws of all states where a Property is located, which are the same as or similar to the rights and defenses
waived as described above. 

        This
is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrowers' debt is secured by real property. These rights and defenses include, but
are not limited to, any rights or defenses based upon Sections 580a, 580b, 580d, or 726 of the California Code of Civil Procedure. 

        2.5.    Subordination.    All indebtedness now or hereafter owing by Borrowers to Guarantor
for borrowed money or otherwise is hereby subordinated to the payment of the Obligations, and, (a) during the continuation of a default hereunder or under any of the other Loan Documents,
Guarantor shall not
accept any principal payment with respect to such subordinated indebtedness until satisfaction in full of the Obligations, and (b) during the continuation of an Event of Default hereunder or
under any of the other Loan Documents, Guarantor shall not accept payment of all or any portion of such subordinated indebtedness until satisfaction in full of the Obligations. All security interests,
liens and encumbrances which Guarantor now or hereafter may have upon any of the assets of Borrowers, or any one of them, are hereby subordinated to all security interests, liens and encumbrances
heretofore, now or hereafter granted to Agent and/or Lenders pursuant to the Loan Documents. 

3.     GUARANTOR'S WAIVERS  

        3.1.    Statutes of Limitation.    Guarantor irrevocably waives all statutes of limitation as
a defense to any action or proceeding brought against Guarantor by Agent and/or Lenders, to the fullest extent permitted by law. 

        3.2.    Election of Remedies.    Guarantor irrevocably waives any defense based upon an
election of remedies made by Agent and/or Lenders or any other election afforded to Agent and/or Lenders pursuant to applicable law, including, without limitation, (a) any election to proceed
by judicial or nonjudicial foreclosure or by UCC sale or by deed or assignment in lieu thereof, or any election of remedies which destroys or otherwise impairs the subrogation rights of the Guarantor
or the rights of the Guarantor to proceed against any Borrower for reimbursement, or both, (b) the waiver by Agent 

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and/or
Lenders, either by action or inaction of Agent and/or Lenders or by operation of law, of a deficiency judgment against any Borrower, and (c) any election pursuant to an Insolvency
Proceeding. 

        3.3.    Rights of Subrogation and Other Rights.    Guarantor irrevocably waives (a) all
rights at law or in equity to seek subrogation, contribution, indemnification or any other form of reimbursement or repayment from any Borrower or any other person or entity now or hereafter primarily
or secondarily liable for any of the Obligations for any disbursements made by any Guarantor under or in connection with this Guaranty, (b) all claims of any kind or type against any Borrower
as a result of any payment made by Guarantor to Agent and/or Lenders, and (c) any right to participate in any security now or hereafter held by Agent and/or Lenders. In furtherance, and not in
limitation, of the foregoing, Guarantor agrees that any payment to Agent and/or Lenders pursuant to this Guaranty shall be deemed a contribution to the capital of Borrowers or other obligated party
and shall not constitute Guarantor a creditor of Borrowers or such other party. Guarantor further agrees that to the extent the waiver of its rights of subrogation as set forth herein is found by a
court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation Guarantor may have against Borrowers or against any collateral or security for any of the Obligations
shall be junior and subordinate to any rights Agent and/or Lenders may have against Borrowers and to all right, title and interest Agent and/or Lenders may have in such collateral or security. 

        3.4.    Demands and Notices.    Guarantor irrevocably waives all presentments, demands for
performance, protests, notices of protest, notices of dishonor, notices of acceptance of this Guaranty and of the existence, creation or incurring of new or additional Obligations, notices of defaults
or Events of Default by Borrowers or any other person liable for the Obligations and demands and notices of every kind that may be required to be given by any statute or rule or law. 

        3.5.    Borrowers Information.    Guarantor irrevocably waives (a) any duty of Agent
and/or Lenders to advise Guarantor of any information known to Agent and/or Lenders regarding the financial condition of Borrowers (it being the obligation of Guarantor to keep informed regarding such
condition), and (b) any defense based on any claim that Guarantor's obligations exceed or are more burdensome than those of Borrowers. 

        3.6.    Limitation of Liability.    Guarantor irrevocably waives any impairment, modification,
change, release or limitation of the liability of, or stay of actions or lien enforcement proceedings against, Borrowers or Guarantor, their property, or their estate in bankruptcy, resulting from the
operation of any provision of the state or federal bankruptcy laws, or from the decision of any court. 

        3.7.    Lack of Diligence.    Guarantor irrevocably waives any and all claims or defenses
based upon lack of diligence in: (a) collection of any Obligations; (b) protection of any collateral or other security for the Indebtedness or Obligations; or (c) realization upon
the other Loan Documents. 

        3.8.    Other Defenses.    Guarantor irrevocably waives any other defenses,
set-offs or counterclaims which may be available to Borrowers and any and all other defenses now or at any time hereafter available to Guarantor (including without limitation those given
to sureties) at law or in equity, except for the defense that payment has actually been made and received by Agent. 

4.     REPRESENTATIONS AND WARRANTIES  

        Guarantor represents and warrants to Agent and Lenders as follows: 

        4.1.    Guarantor Existence; Authority.    Guarantor is a corporation, duly organized, validly
existing and in good standing under the laws of the State of Maryland with its principal place of business at 9690 Deereco Road, Suite 100, Timonium, Maryland 21093. Guarantor is qualified to do
business in those jurisdictions in which the character of the properties owned by it or in which the transaction of its business makes its qualification necessary. Guarantor is the sole member of each
LLC Borrower and owns one hundred percent (100%) of the membership interests in each LLC Borrower, free and clear 

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of
all liens, claims, and encumbrances, except as otherwise created under the Loan Documents. Guarantor is the sole stockholder of each Corporate Borrower and owns one hundred percent (100%) of the
outstanding stock in each Corporate Borrower, free and clear of all liens, claims, and encumbrances, except as otherwise created under the Loan Documents. Guarantor has full right, power and authority
to execute this Guaranty and the Loan Documents on its own behalf and on behalf of each Borrower. 

        4.2.    Enforcement.    This Guaranty has been duly authorized, executed and delivered and
constitutes the duly authorized, legally valid and binding obligation of Guarantor, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or other similar laws, now or hereafter in effect, relating to or affecting the enforcement of creditors' rights generally and except that the remedy of
specific performance and other equitable remedies are subject to judicial discretion. 

        4.3.    Guarantor's Organizational Documents.    A true and complete copy of the articles of
incorporation and by-laws of Guarantor and all other material documents creating and governing Guarantor (collectively, the "Guarantor Incorporation
Documents") have been furnished to Agent. There are no other material agreements, oral or written, among any of the shareholders of Guarantor relating to Guarantor. The
Guarantor Incorporation Documents were duly executed and delivered, are in full force and effect, and binding upon and enforceable in accordance with their terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws, now or hereafter in effect, relating to or affecting the enforcement of creditors' rights generally and
except that the remedy of specific performance and other equitable remedies are subject to judicial discretion. No breach exists under the Guarantor Incorporation Documents and no act has occurred and
no condition exists which, with the giving of notice or the passage of time or both, would constitute a breach under the Guarantor Incorporation Documents. 

        4.4.    Financial Statements.    All financial statements and other financial information of
Guarantor furnished or to be furnished to Agent and/or Lenders (a) are or will be true and correct in all material respects and do or will represent fairly in all material respects the
financial condition of Guarantor (including all contingent liabilities) as of the respective dates in question and the results of operations for the respective periods indicated, and (b) were
or will be prepared in accordance with generally accepted accounting principles, or such other accounting principles as may be reasonably acceptable to Agent at the time of their preparation,
consistently applied. There has been no material adverse change since June 30, 2003 in Guarantor's structure, business operations, credit, prospects or financial condition. 

        4.5.    No Defaults.    There is no existing event of default, and no event has occurred which
with the passage of time and/or the giving of notice or both will constitute an event of default, under any agreement to which Guarantor is a party, which event of default could reasonably be expected
to create a Material Adverse Effect. Neither the execution and delivery of this Guaranty nor compliance with the terms and provisions hereof will (a) violate any presently existing applicable
law, regulation, order, writ, injunction or decree of any court or governmental department, commission, board, bureau, agency or instrumentality, or (b) conflict or be inconsistent with, or
result in any default (with due notice or lapse of time or both) under, any agreement to which Guarantor is bound, except for any conflict, inconsistency or default which would not reasonably be
expected to have a Material Adverse Effect. 

        4.6.    No Litigation.    Except as set forth on Exhibit 4.6 hereto, there are no
actions, suits or proceedings pending or, to Guarantor's knowledge, threatened against Guarantor before any court or any governmental, administrative, regulatory, adjudicatory or arbitrational body or
agency of any kind which, if decided adversely, would reasonably be expected to have a Material Adverse Effect. 

        4.7.    Accuracy.    Neither this Guaranty nor any document, financial statement, credit
information, certificate or statement heretofore furnished or required herein to be furnished to Agent and/or 

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Lenders
by Guarantor contains any materially untrue statement of material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading as
of the date such statement was made; provided, however, that any representation in respect of any
furnished document, financial statement or information that was received by Guarantor from any third party which is not an Affiliate of any Borrower or Guarantor in respect of any Project or any of
the Health Care Facilities is limited in all respects to Guarantor's knowledge. 

        4.8.    Foreign Ownership.    Guarantor is not and will not be, and no legal or beneficial
interest of an Affiliate of Guarantor is or will be held, directly or indirectly, by a "foreign corporation", "foreign partnership", "foreign trust", "foreign estate", "foreign person", "affiliate" of
a "foreign person" or a "United States intermediary" of a "foreign person" within the meaning of Sections 897 and 1445 of the Internal Revenue Code of 1986, as amended
("IRC"), the Foreign Investments in Real Property Tax Act of 1980, the International Foreign Investment Survey Act of 1976, the Agricultural Foreign
Investment Disclosure Act of 1978, or the regulations promulgated pursuant to such Acts set forth above in this Section 4.8 or any amendments to such Acts. 

        4.9.    Solvency.    Guarantor is solvent and there has been no: (a) assignment made
for the benefit of the creditors of Guarantor; (b) appointment of a receiver for Guarantor or for the property of Guarantor; or (c) bankruptcy, reorganization, or liquidation proceeding
instituted by or against Guarantor. 

        4.10.    Public Debt.    The execution and delivery of the applicable Loan Documents by
Borrowers and Guarantor will not violate the terms of or cause a breach or default under any outstanding
indebtedness of Guarantor, including, without limitation, the 6.95% Notes due August 2007 (the "Public Debt"). Guarantor has delivered to Agent a
complete and correct copy of all material documents evidencing the Public Debt. 

        4.11.    Government Regulations.    Guarantor is not an "investment company" or an "affiliated
person" of, or "promoter" or "principal underwriter" for, an "investment company," as such terms are defined in the Investment Company Act of 1940. Guarantor is not subject to regulation under the
Public Utility Holding Company Act of 1935, the Federal Power Act, or any other federal or state statute that restricts or limits its ability to incur Indebtedness or to perform its obligations
hereunder. The making of the Loan by Lenders to Borrowers, the application of the proceeds thereof and repayment thereof will not violate any provision of any such statute or any rule, regulation or
order issued by the Securities and Exchange Commission. 

        4.12.    Margin Regulations.    Guarantor is not engaged, nor will it engage, principally or
as one of its important activities, in the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" as such terms are defined in Regulation U of the Federal
Reserve Board as now and from time to time hereafter in effect (such securities being referred to herein as "Margin Stock"). Guarantor does not own any
Margin Stock, and none of the proceeds of the Loan or other extensions of credit under the Loan Agreement will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin
Stock, for the purpose of reducing or retiring any indebtedness that was originally incurred to purchase or carry any Margin Stock or for any other purpose that might cause the Loan or other
extensions of credit under the Loan Agreement to be considered a "purpose credit" within the meaning of Regulations T, U or X of the Federal Reserve Board. Guarantor will not take or permit to be
taken any action that might cause any Loan Document to violate any regulation of the Federal Reserve Board. 

        4.13.    All
tax returns, reports and statements, including information returns, required by any Governmental Authority to be filed by Guarantor have been filed with the
appropriate Governmental Authority and, except to the extent that appropriate reserves therefor have been made and are disclosed on Guarantor's balance sheet, all charges have been paid prior to the
date on which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof (or any such fine, 

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penalty,
interest, late charge or loss has been paid). Exhibit 4.13 hereto sets forth as of the Closing Date those taxable years for which Guarantor's tax returns are currently being audited by
the Internal Revenue Service (the "IRS") or any other applicable Governmental Authority, and any assessments or threatened assessments in connection
with such audit, or otherwise currently outstanding. Except as described on Exhibit 4.13 hereto, Guarantor has not executed or filed with the IRS or any other Governmental Authority any
agreement or other document extending, or having the effect of extending, the period for assessment or collection of any taxes. 

        4.14.    ERISA

        4.14.1.    Exhibit 4.14
hereto lists (a) all ERISA Affiliates and (b) all Plans and separately identifies all Pension Plans, including Title IV Plans,
Multiemployer Plans, ESOPs and Welfare Plans, including all Retiree Welfare Plans. Copies of all such listed Plans, together with a copy of the latest IRS/DOL 5500-series form for each
such Plan, have been delivered to Agent. Except with respect to Multiemployer Plans, each Qualified Plan has been determined by the IRS to qualify under Section 401 of the IRC, the trusts
created thereunder have been determined to be exempt from tax under the provisions of Section 501 of the IRC, and, to Guarantor's knowledge, nothing has occurred that would cause the loss of
such qualification or tax-exempt status. Each Plan is in compliance with the applicable provisions of ERISA and the IRC, including the timely filing of all reports required under the IRC
or ERISA, including the statement required by 29 CFR Section 2520.104-23. Neither Guarantor nor any ERISA Affiliate has failed to make any contribution or pay any amount due as
required by either Section 412 of the IRC or Section 302 of ERISA or the terms of any such Plan. Neither Guarantor nor any ERISA Affiliate has engaged in a "prohibited transaction," as
defined in Section 406 of ERISA and Section 4975 of the IRC, in connection with any Plan, that would subject Guarantor to a material tax on prohibited transactions imposed by
Section 502(i) of ERISA or Section 4975 of the IRC. 

        4.14.2.    Except
as set forth on Exhibit 4.14 hereto: (a) no Title IV Plan has any Unfunded Pension Liability; (b) no ERISA Event or event described in
Section 4062(e) of ERISA with respect to any Title IV Plan has occurred or is reasonably expected to occur; (c) there are no pending or, to the knowledge of Guarantor, threatened claims
(other than claims for benefits in the normal course), sanctions, actions or lawsuits, asserted or instituted against any Plan or any Person as fiduciary or sponsor of any Plan; (d) neither
Guarantor nor any ERISA Affiliate has incurred or reasonably expects to incur any liability as a result of a complete or partial withdrawal from a Multiemployer Plan; (e) within the last five
(5) years no Title IV Plan of Guarantor or any ERISA Affiliate has been terminated, whether or not in a "standard termination" as that term is used in Section 4041(b)(1) of ERISA, nor
has any Title IV Plan of Guarantor or any ERISA Affiliate (determined at any time within the last five (5) years) with Unfunded Pension Liabilities been transferred outside of the "controlled
group" (within the meaning of Section 4001(a)(14) of ERISA) of Guarantor or any ERISA Affiliate (determined at such time); (f) except in the case of any ESOP, stock or membership
interests of Guarantor and its ERISA Affiliates makes up, in the aggregate, no more than ten percent (10%) of fair market value of the assets of any Plan measured on the basis of fair market value as
of the latest valuation date of any Plan; and (g) no liability under any Title IV Plan has been satisfied with the purchase of a contract from an insurance company that is not rated AAA by the
Standard & Poor's Corporation or an equivalent rating by another nationally recognized rating agency. 

        4.15.    Guarantor's Knowledge.    Any representation and warranty made in this Guaranty which
is explicitly limited "to Guarantor's knowledge", shall mean that such representation and warranty is made to the actual knowledge (without inquiry) of any of the following people or their respective
successors: (a) C. Taylor Pickett, Chief Executive Officer of Guarantor, (b) Daniel J. Booth, Chief Operating Officer of Guarantor, (c) Robert Stephenson, Chief Financial Officer
of Guarantor, or (d) R. Lee Crabill, Jr., Senior Vice President of Operations of Guarantor. 

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5.     EVENTS OF DEFAULT  

        Upon the occurrence of any of the following events and during the continuance thereof, at the option of Agent or at the direction of Requisite Lenders, Agent
and/or Lenders may, upon written notice to Borrowers or Guarantor, declare any or all of the Obligations, whether or not then due, immediately due and payable by Guarantor under this Guaranty, and
Agent and/or Lenders shall be entitled to enforce the obligations of Guarantor hereunder. 

        5.1.    Loan Agreement Event of Default.    The occurrence of any Event of Default under the
Loan Agreement. 

        5.2.    Failure to Pay or Perform.    Guarantor fails to pay or perform, within five
(5) days after written notice thereof from Agent to Guarantor, any of the Obligations under this Guaranty. 

        5.3.    Guarantor Financial Covenants.    The breach of any covenant set forth in  Section 6.1,
 6.2, 6.3,  6.4 or 6.5 below. 

        5.4.    Other Guarantor Covenants and Representations.    The breach of any covenant (other
than matters referenced elsewhere in this Article 5), representation or warranty which is not cured within thirty (30) days after written notice thereof from Agent to Guarantor;  provided,
however, if such breach cannot by its nature be cured within thirty (30) days, and
Guarantor diligently pursues the curing thereof (and then in all events cures such failure within ninety (90) days after the original notice thereof), Guarantor shall not be in default
hereunder; provided, further, that such cure period shall not apply to the breach of any representation
or warranty which, by its nature, is not curable. 

        5.5.    Revocation or Termination of Guaranty.    This Guaranty is revoked or terminated by
Guarantor. 

        5.6.    Dissolution.    Guarantor dissolves or liquidates, or the business of Guarantor is
suspended or terminated for any reason. 

6.     COVENANTS  

        6.1.    Leverage Ratio.    Guarantor's Leverage Ratio shall not exceed the following amounts
for the following periods: 

	Periods
 
	 	Maximum Leverage Ratio

	Periods through June 30, 2004	 	6.00:1.00
	Periods ending September 30, 2004 through June 30, 2005	 	5.75:1.00
	Periods ending September 30, 2005 through June 30, 2006	 	5.50:1.00
	Periods after June 30, 2006	 	5.00:1.00

        Guarantor's
"Leverage Ratio" shall mean (a) Guarantor's total consolidated indebtedness for borrowed money divided by
(b) Guarantor's Adjusted Consolidated Net Income (as defined below) over the previous twelve (12) month period. Guarantor's Leverage Ratio shall be calculated on a quarterly basis,
beginning September 30, 2003. 

        "Guarantor's Adjusted Consolidated Net Income" means Guarantor's consolidated net income as set forth on its income statement, over the
previous twelve (12) month period, calculated in accordance with generally accepted accounting principles consistent with standards utilized by Agent in connection with its underwriting of the
Loan, excluding (a) interest, (b) taxes, (c) depreciation, (d) amortization, (e) in aggregate over the entire Term of the Loan, up to $35,000,000 for certain one
time, non-cash loss or impairment charges related to certain investments and termination of certain third party leases satisfactory to Agent, (f) in aggregate over the entire Term
of the Loan, $5,000,000 of costs associated with collections of and reserves taken against account receivables associated with formerly owned and operated Health Care Facilities, (g) in
aggregate over the entire Term of the Loan, $5,000,000 of 

9

 

litigation
settlement charges, and (h) non-cash charges resulting from changes in generally accepted accounting principles or the application thereof with respect to financial
derivatives such as interest rate swaps or caps; provided, that calculation of Guarantor's Adjusted Consolidated Net Income shall not include those one time charges and costs made or incurred by
Guarantor in the quarterly periods ending December 31, 2002, March 31, 2003 and June 30, 2003 which are listed on  Exhibit 6.1 hereto, nor shall such one time charges and costs listed
on Exhibit 6.1 hereto
be subject to or count against the limitations to the exclusions over the Term of the Loan described in clauses (e), (f), (g) or (h) above. 

        6.2.    Fixed Charge Coverage Ratio.    Guarantor's Fixed Charge Coverage Ratio shall be
greater than 1.75:1.00 at all times during the Term. Guarantor's "Fixed Charge Coverage Ratio" shall mean the ratio of (a) Guarantor's Adjusted
Consolidated Net Income over the previous twelve (12) month period, to (b) payments of interest and principal due on any indebtedness of Guarantor on a consolidated basis during the same
period; provided, that all principal payments made (i) on or prior to the Closing Date, (ii) in respect of the Revolving Loan or the Swing Line Loan, (iii) as
non-regularly scheduled prepayments of the Term Loan, (iv) in respect of any of the IRBs and (v) in respect of Guarantor's Public Debt (but only to the extent such Public
Debt is refinanced other than through proceeds of borrowings under the Loan Agreement), shall be excluded from any calculation of Guarantor's Fixed Charge Coverage Ratio. Guarantor's Fixed Charge
Coverage Ratio shall be calculated on a quarterly basis, beginning September 30, 2003. 

        6.3.    Net Worth.    Guarantor's consolidated net worth as set forth on its balance sheet
shall be equal to or greater than $270,000,000 at all times during the Term. Guarantor's net worth shall be calculated in accordance with generally accepted accounting principles consistent with
standards utilized by Agent in connection with its underwriting of the Loan and shall be calculated on a quarterly basis, beginning September 30, 2003. 

        6.4.    Recourse Indebtedness.    Guarantor shall not incur any indebtedness for Borrowed
Money which is recourse to Guarantor (excluding indebtedness set forth on Guarantor's most recent balance sheet delivered to Agent prior to September 30, 2003 and excluding Guarantor's guaranty
of the $225,000,000 Facility and this Guaranty). "Borrowed Money" shall mean (a) all indebtedness for borrowed money, (b) all obligations
evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) that portion of obligations with respect to capital leases that is
properly classified as a liability on a balance sheet in conformity with GAAP, (d) any obligations issued
or assumed as the deferred purchase price of property or services purchased, (e) all Borrowed Money of others secured by (or for which the holder of such Borrowed Money has an existing right,
contingent or otherwise, to be secured by) any lien on, or payable out of the proceeds of production from, any property or asset owned, held or acquired, (f) all guaranty obligations of
Guarantor in respect of any Borrowed Money of any other person or entity, (g) the maximum amount of all standby letters of credit issued or bankers' acceptances facilities created for the
account of Guarantor and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), and (h) the principal balance outstanding under any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing product plus any accrued interest thereon. 

        6.5.    Dividend Payouts.    Guarantor shall not make any distributions of dividends except
for (a) accrued preferred dividends as of the Closing Date and (b) no more than ninety-five percent (95%) of Guarantor's "Funds from Operations", as defined in the White
Paper on Funds from Operations approved by the Board of Governors of the National Association of Real Estate Investment Trusts. 

        6.6.    Guarantor Incorporation Documents.    Guarantor shall not amend, modify or terminate,
or permit the amendment, modification or termination of the Guarantor Incorporation Documents in any material respect without Agent's prior written consent, which consent shall not be unreasonably
withheld or delayed. 

10

 

        6.7.    Determination of Compliance By Agent.    Agent shall determine, in its reasonable
discretion, whether Guarantor has complied with each of the foregoing covenants in this Article 6. 

7.     MISCELLANEOUS  

        7.1.    Revival and Reinstatement.    If at any time all or any part of any payment
theretofore applied by Agent and/or Lenders to any of the Obligations is or must be rescinded or returned by Agent and/or Lenders for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of any Borrower), such Obligations shall, for the purposes of this Guaranty, to the extent such payment is or must be rescinded or returned, be deemed to have
continued in existence, notwithstanding such application by Agent and/or Lenders, and this Guaranty shall continue to be effective or be reinstated, as the case may be, as to such Obligations, and
Guarantor shall be fully liable therefore, all as though such application by Agent and/or Lenders had not been made. 

        7.2.    No Marshaling.    Agent and Lenders have no obligation to marshal any assets in favor
of Guarantor, or against or in payment of (a) any of the Obligations, or (b) any other obligation owed to Agent and/or Lenders by Guarantor, any Borrower or any other person. 

        7.3.    No Modification, Waiver or Release Without Writing.    Except as may otherwise be
expressly set forth herein, this Guaranty may not be modified, amended, revised, revoked, terminated, changed or varied in any way whatsoever, nor shall any waiver of any of the provisions of this
Guaranty be binding upon Agent or Lenders, except as expressly set forth in a writing duly executed by Agent and Lenders. No waiver by Agent or Lenders of any default shall operate as a waiver of any
other default or the same default on a future occasion, and no action by Agent or Lenders permitted hereunder shall in any way affect or impair Agent's or Lenders' rights or the obligations of
Guarantor under this Guaranty. 

        7.4.    Assignment; Successors and Assigns.    Guarantor may not assign Guarantor's
obligations or liability under this Guaranty. Subject to the preceding sentence, this Guaranty shall be binding upon the parties hereto and their respective heirs, executors, successors,
representatives and assigns and shall inure to the benefit of the parties hereto and their respective successors and assigns. Agent and/or Lenders may, without notice to anyone, sell or assign the
Obligations, the Notes or other Loan Documents or any part thereof, or grant participations therein, and in any such event each and every assignee or holder of, or participant in, all or any of the
Obligations shall have the right to enforce this Guaranty, by suit or otherwise for the benefit of such assignee, holder, or participant, as fully as if herein by name specifically given such right,
but Agent and/or Lenders shall have an unimpaired right, prior and superior to that of any such assignee, holder or participant, to enforce this Guaranty for the benefit of Agent and/or Lenders. 

        7.5.    Integration.    This Guaranty is the entire agreement of Guarantor with respect to the
subject matter of this Guaranty, provided that this Guaranty shall not in any way limit or abrogate the obligations of Guarantor under the other Loan Documents, including, without limitation, the
Environmental Indemnity of even date herewith. 

        7.6.    Rights Cumulative.    All of Agent's and/or Lenders' rights under this Guaranty and
the other Loan Documents are cumulative. The exercise of any one right does not exclude the exercise of any other right given in this Guaranty or the other Loan Documents or any other right of Agent
and/or Lenders not set forth in this Guaranty or the other Loan Documents. If there is more than one Guarantor hereunder, Agent and/or Lenders may exercise their rights and remedies against any one or
more of such Guarantors and the failure of Agent and/or Lenders to proceed against one or more of such Guarantors shall not affect the liability of the Guarantor under this Guaranty. 

        7.7.    Severability.    Whenever possible each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such 

11

 

prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Guaranty. 

        7.8.    Material Inducement; Consideration.    Guarantor acknowledges and agrees that Agent
and Lenders are specifically relying upon the representations, warranties, agreements and waivers contained herein and that such representations, warranties, agreements and waivers constitute a
material inducement to Agent and Lenders to accept this Guaranty and to enter into the Loan Agreement and the transaction contemplated therein. Guarantor further acknowledges that it expects to
benefit from Lenders' extension of financing accommodations to Borrowers because of its relationship to Borrowers, and that it is executing this Guaranty in consideration of that anticipated benefit. 

        7.9.    Indemnification.    Guarantor agrees to indemnify, pay and hold Agent and Lenders and
their respective officers, directors, employees, agents, and attorneys (collectively, the "Indemnitees") harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel for such Indemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not any such Indemnitees shall be
designated a party thereto) that may be imposed on, incurred by, or asserted against such Indemnitees, in any manner relating to or arising out of this Guaranty or the exercise of any right or remedy
of Agent or Lenders hereunder or under the other documents pertaining to the Obligations (collectively, the "Indemnified Liabilities");  provided, that
Guarantor shall have no obligation to any Indemnitees under this Section 7.9 with respect to Indemnified Liabilities arising from
the gross negligence or willful misconduct of any Indemnitees. Upon written request by any Indemnitees, Guarantor will undertake, at its own cost and expense, on behalf of such Indemnitees, using
counsel reasonably satisfactory to such Indemnitees, the defense of any legal action or proceeding whether or not such Indemnified Person shall be a party and for which such Indemnified Person is
entitled to be indemnified pursuant to this Section 7.9. At Agent's or Requisite Lenders' option and upon prior written notice to Guarantor, Agent may, at Guarantor's expense, prosecute or
defend any third party claim or action involving the validity or enforceability of this Guaranty. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this
Section 7.9 may be unenforceable because it is violative of any law or public policy, Guarantor shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law
to the payment and satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any of them. 

        7.10.    Counterparts.    This Guaranty may be executed in counterparts, each of which shall
be deemed an original, but all of which, when taken together, shall be deemed one and the same agreement. 

        7.11.    Governing Law.    This Guaranty shall be governed by and construed in accordance with
the internal laws of the State of Illinois, without regard to conflicts of law provisions. 

        7.12.    Joint and Several Obligations.    If this Guaranty is executed by more than one
Guarantor then all of the covenants, obligations, agreements, indemnities, representations and warranties of the Guarantors contained herein shall be joint and several. 

        7.13.    GUARANTOR,
AND BY THEIR ACCEPTANCE OF THIS GUARANTY, AGENT AND LENDERS, HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF
COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREE THAT, SUBJECT TO AGENT'S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS GUARANTY SHALL BE LITIGATED IN SUCH COURTS. GUARANTOR,
AND BY THEIR ACCEPTANCE OF THIS GUARANTY, AGENT AND LENDERS, EXPRESSLY SUBMIT AND CONSENT TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS. GUARANTOR, AND BY
THEIR ACCEPTANCE OF THIS GUARANTY, 

12

 

AGENT
AND LENDERS, HEREBY WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREE THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON GUARANTOR, AGENT AND LENDERS BY CERTIFIED OR REGISTERED MAIL, RETURN
RECEIPT REQUESTED, ADDRESSED TO GUARANTOR, AGENT AND LENDERS, AT THE ADDRESSES SET FORTH IN SECTION 10.7 OF THE LOAN AGREEMENT. 

        7.14.    WAIVER OF JURY TRIAL.    GUARANTOR, AND BY THEIR ACCEPTANCE
OF THIS GUARANTY, AGENT AND LENDERS, HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS GUARANTY AND THE BUSINESS
RELATIONSHIP THAT IS BEING ESTABLISHED. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY GUARANTOR, AND BY THEIR ACCEPTANCE OF THIS GUARANTY, AGENT AND LENDERS. AGENT, LENDERS AND
GUARANTOR ACKNOWLEDGE THAT NEITHER AGENT, LENDERS OR GUARANTOR NOR ANY PERSON ACTING ON BEHALF OF AGENT, LENDERS OR GUARANTOR HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY
JURY OR HAS TAKEN ANY ACTIONS WHICH IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.

        7.15.    WAIVERS UNDER THIS GUARANTY.    THE WAIVERS SET FORTH IN THIS
GUARANTY (INCLUDING, WITHOUT LIMITATION, SECTIONS 7.13 AND 7.14 ABOVE) ARE KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY GUARANTOR, AGENT AND LENDERS, AND GUARANTOR, AGENT AND LENDERS
ACKNOWLEDGE THAT NEITHER GUARANTOR, AGENT, LENDERS NOR ANY PERSON ACTING ON BEHALF OF ANY OF THEM, HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THESE WAIVERS OR IN ANY WAY TO MODIFY OR NULLIFY THEIR
EFFECT. GUARANTOR, AGENT AND LENDERS FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED (OR HAVE HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OR ACCEPTING OF THIS GUARANTY AND IN THE MAKING
OF THESE WAIVERS BY INDEPENDENT LEGAL COUNSEL, SELECTED OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD THE OPPORTUNITY TO DISCUSS THESE WAIVERS WITH COUNSEL.

        7.16.    Disclosure of Information.    Agent and/or Lenders shall have the right (but shall be
under no obligation) to make available to any party for the purpose of granting participations in or selling, transferring, assigning or conveying all or any part of the Loan (including any
governmental agency or authority and any prospective bidder at any foreclosure sale of any Project) any and all information which Agent and/or Lenders may have with respect to any Project and
Borrowers, whether provided by Borrowers, Guarantor or any third party or obtained as a result of any environmental assessments. Guarantor agrees that Agent and Lenders shall have no liability
whatsoever as a result of delivering any such information to any third party, and Guarantor, on behalf of itself, its Affiliates and its successors and assigns, hereby releases and discharges Agent
and Lenders from any and all liability, claims, damages, or causes of action, arising out of, connected with or incidental to the delivery of any such information to any third party. 

        7.17.    Termination of Guaranty.    This Guaranty shall terminate upon the indefeasible
payment in full of the Obligations and the termination of any further obligations of Lenders to extend any credit to the Borrowers under the Loan Documents. 

SIGNATURE PAGE FOLLOWS  

13

 

        The undersigned has duly executed this Guaranty as of the date and year first above written. 

	 	 	OMEGA HEALTHCARE INVESTORS, INC., a Maryland corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:	 	Daniel J. Booth

	 	 	Its:	 	Chief Operating Officer

14

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Exhibit 10.5  

Loan No. 4128  

  
 

    OWNERSHIP PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT    
    

        THIS OWNERSHIP PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT (this "Agreement") is made as of December 31,
2003, by OMEGA HEALTHCARE INVESTORS, INC., a Maryland corporation (the "Pledgor"), in favor of GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation, in its capacity as Agent for the Lenders (as Agent and Lenders are defined in the Loan Agreement defined below). 

RECITALS  

        R-1. The following entities are collectively referred to as "Borrowers" and each, individually, as a
"Borrower": Omega Acquisition Facility I, LLC, a Delaware limited liability company, and each other entity which is hereafter joined to the Loan
Agreement (as defined below) as a Borrower. 

        R-2.
Pursuant to a certain Loan Agreement of even date herewith (as the same may be amended, modified, renewed or restated from time to time, the
"Loan Agreement"), Lenders have agreed to make available to Borrowers the Loan (as defined in the Loan Agreement) in the maximum principal amount of up
to $50,000,000. Borrowers have also executed and delivered the Notes (as defined in the Loan Agreement). The terms and provisions of the Loan Agreement and Notes are hereby incorporated by reference
in this Agreement. 

        R-3.
All capitalized terms used but not defined herein shall have the meanings given to them in the Loan Agreement. 

        R-4.
The term "Obligations" as used herein means (a) the principal of, and interest on, the Notes and all other sums,
fees, charges and expenses due or payable under this Agreement or the other Loan Documents, (b) all agreements and covenants with and obligations to Agent and/or Lenders arising under, out of,
or as a result of or in connection with the Loan Documents, (c) all amounts advanced by Agent and/or any Lender to preserve, protect, defend, and enforce its rights under this Agreement and the
other Loan Documents or in the Collateral encumbered by the Loan Documents, and all reasonable expenses incurred by Agent and/or Lenders in connection therewith, and (d) any and all other
present and future indebtedness, liabilities and obligations of every kind and nature whatsoever of Borrowers to Agent and/or Lenders, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, joint or several, both now and hereafter existing, or due or to become due, in each case subject to and in accordance with the terms and conditions of the Loan
Agreement and the other Loan Documents. 

        R-5.
As a condition to making the Loan, Agent and Lenders have required the Pledgor to execute and deliver this Agreement as additional security for the Loan. 

        R-6.
Pledgor is the sole member or sole shareholder of each Borrower and, as such, will derive substantial benefit by reason of Lenders making the Loan. 

AGREEMENT  

        NOW, THEREFORE, as security for the Obligations, and to induce Lenders to make the Loan, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Pledgor and Agent, for itself and Lenders, hereby covenant and agree as follows: 

        1.     Grant of Assignment and Security Interest. Pledgor hereby pledges, assigns and grants to Agent, for the benefit of
Lenders, a security interest in the following property of Pledgor (collectively, the "Collateral"), whether now existing or hereafter created or
arising: 

        (a)   all
of the stock, shares, member interests and other equity ownership interests in each Borrower now or hereafter held by Pledgor (collectively, the
"Ownership Interests") and all of the 

 

Pledgor's
rights to participate in the management of each Borrower, all rights, privileges, authority and powers of the Pledgor as owner or holder of its Ownership Interests in each Borrower,
including, but not limited to, all contract rights, voting rights, general intangibles, accounts and payment intangibles related thereto, all rights, privileges, authority and powers relating to the
economic interests of the Pledgor as owner or holder or its Ownership Interests in each Borrower, including, without limitation, all contract rights, general intangibles, accounts and payment
intangibles related thereto, all options and warrants of the Pledgor for the purchase of any Ownership Interests in any Borrower, all documents and certificates representing or evidencing the
Pledgor's Ownership Interests in any Borrower, all of Pledgor's right, title and interest to receive payments of principal and interest on any loans and/or other extensions of credit made by the
Pledgor to each Borrower, and any other right, title, interest, privilege, authority and power of the Pledgor in or relating to each Borrower, all whether now existing or hereafter arising, and
whether arising under any operating agreement, bylaws, certificate of formation, articles of organization or other organization or governing documents of any Borrower (as the same may be amended,
modified or restated from time to time) or otherwise, or at law or in equity and all books and records of the Pledgor pertaining to any of the foregoing and all options, warrants, distributions,
investment property, cash, instruments and other rights and options from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such interests, and
the Pledgor shall promptly thereafter deliver to Agent a certificate duly executed by the Pledgor describing such percentage interests, options or warrants and certifying that the same have been duly
pledged hereunder; 

        (b)   all
rights to receive cash distributions, income, profits, losses and capital distributions (including, but not limited to, distributions in kind and liquidating
dividends) and any other rights and property interests related to the Ownership Interests; 

        (c)   all
other securities, instruments or property (including cash) paid or distributed in respect of or in exchange for the Ownership Interests, whether or not as part of or
by way of spin-off, merger, consolidation, dissolution, reclassification, combination or exchange of stock (or other ownership interests), asset sales, or similar rearrangement or
reorganization or otherwise; and 

        (d)   all
proceeds (both cash and non-cash) of the foregoing, whether now or hereafter arising under the foregoing. 

        2.     Registration of Pledge in Books of Borrowers; Application of Proceeds. Pledgor hereby authorizes and directs each Borrower
to register Pledgor's pledge to Agent of the Collateral on the books of each Borrower and, following written notice to do so by Agent after the occurrence of an "Event of Default" (as defined in
Section 7 below) under this Agreement, to make direct payment to Agent of any amounts due or to become due to Pledgor with respect to the Collateral. During the continuation of an Event of
Default, any moneys received by Agent shall be applied to the Obligations in such order and manner of application as Agent may from time to time determine in its sole discretion. 

        3.     Rights of Pledgor in the Collateral. Until any Event of Default occurs under this Agreement, Pledgor shall be entitled to
exercise all voting rights and to receive all dividends and other distributions that may be paid on any Collateral and that are not otherwise prohibited by the Loan Documents. Any cash dividend or
distribution payable in respect of the Collateral that is, in whole or in part, a return of capital or that is made in violation of this Agreement or the Loan Documents shall be received by Pledgor in
trust for Agent, shall be paid immediately to Agent and shall be retained by Agent as part of the Collateral. Upon the occurrence and during the continuation of an Event of Default, the Pledgor shall,
at the written direction of Agent, immediately send a written notice to each Borrower instructing each Borrower, and shall cause each Borrower, to remit all cash and other distributions payable with
respect to the Ownership Interests (until such time as Agent notifies Pledgor that such Event of Default has ceased to exist) directly to Agent. Nothing contained in this Section 3 shall be
deemed to 

2

 

permit
the payment of any sum or the making of any distribution which is prohibited by any of the Loan Documents, if any. 

        4.     Representations and Warranties of Pledgor. Pledgor hereby represents and warrants to Agent and Lenders as follows: 

        (a)   Pledgor
has not heretofore transferred, pledged, assigned or otherwise encumbered any of its rights in or to the Collateral. 

        (b)   Pledgor
is not prohibited under any agreement with any other person or entity, or under any judgment or decree, from the execution and delivery of this Agreement or the
performance or discharge of the obligations, duties, covenants, agreements, and liabilities contained in this Agreement. 

        (c)   No
action has been brought or, to Pledgor's knowledge, threatened that might prohibit or interfere with the execution and delivery of this Agreement or the performance
or discharge of the obligations, duties, covenants, agreements, and liabilities contained in this Agreement. 

        (d)   Pledgor
has full power and authority to execute and deliver this Agreement, and the execution and delivery of this Agreement do not conflict with any agreement to which
Pledgor is a party or any applicable law, order, ordinance, rule, or regulation to which Pledgor is subject or by which it is bound and does not constitute a default under any agreement or instrument
binding upon Pledgor. 

        (e)   This
Agreement has been properly executed and delivered and constitutes the valid and legally binding obligation of Pledgor and is fully enforceable against Pledgor in
accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws, now or hereafter in effect, relating to or
affecting the enforcement
of creditors' rights generally and except that the remedy of specific performance and other equitable remedies are subject to judicial discretion. 

        (f)    Pledgor
has good, valid and clear title to the Collateral. Pledgor is the sole legal, record and beneficial owner of all of the Ownership Interests, free and clear of
all security interests, pledges, voting trusts, agreements, liens, claims and encumbrances whatsoever, other than the security interests, pledges, assignments and liens granted under this Agreement or
the other Loan Documents. 

        (g)   There
exist no membership or other certificates evidencing the Ownership Interests or other Collateral as of the date hereof. 

        5.     Covenants of Pledgor. Pledgor hereby covenants and agrees as follows: 

        (a)   To
do or cause to be done all things necessary to preserve and to keep in full force and effect its interests in the Collateral, and to defend, at its sole expense, the
title to the Collateral and any part of the Collateral; 

        (b)   To
cooperate fully with Agent's and Lenders' efforts to preserve the Collateral and to take such actions to preserve the Collateral as Agent may in good faith direct; 

        (c)   To
cause each Borrower to maintain proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to
the Collateral and which reflect the lien of Agent on the Collateral; 

        (d)   To
deliver immediately to Agent any certificates that may be issued following the date of this Agreement representing the Ownership Interests or other Collateral, and to
execute and deliver to Agent, for the benefit of Lenders, one or more transfer powers, in form and content satisfactory to Agent, pursuant to which Pledgor assigns, in blank, all Ownership Interests
and 

3

 

other
Collateral (collectively, the "Transfer Powers") which Transfer Powers shall be held by Agent as part of the Collateral; 

        (e)   To
authorize Agent to file such financing statements as Agent may request with respect to the Collateral, and to take such other steps as Agent may from time to time
reasonably request to perfect Agent's security interest in the Collateral under applicable law; 

        (f)    Not
to sell, discount, allow credits or allowances, assign, extend the time for payment on, convey, lease, assign, transfer or otherwise dispose of the Collateral or any
part of the Collateral; 

        (g)   After
the occurrence of an Event of Default under the Loan Documents (including but not limited to this Agreement), and written notice thereof from Agent to Borrowers or
Pledgor (except that during any bankruptcy or insolvency proceeding affecting any Borrower or Pledgor, no notice shall be required) not to receive any dividend or distribution or other benefit with
respect to Borrowers, and not to vote, consent, waive or ratify any action taken, that would violate or be inconsistent with any of the terms and provisions of this Agreement, or any of the other Loan
Documents or that would materially impair the position or interest of Agent in the Collateral or dilute the Ownership Interests pledged to Agent under this Agreement; 

        (h)   Not
to sell or otherwise dispose of, or create, incur, assume or suffer to exist any lien upon any of the Collateral, other than liens in favor of Agent granted under
this Agreement or the other Loan Documents; 

        (i)    Not
to amend, modify or terminate the Interest Rate Agreement without the prior written consent of Agent, which consent shall not be unreasonably withheld with respect
to a proposed amendment or modification; and 

        (j)    That
Pledgor consents to the admission of Agent (and its assigns or designee) as a member or stockholder of each Borrower, as applicable, upon Agent's acquisition of any
of the Ownership Interests. 

        6.     Rights of Agent. Agent may from time to time and at its option (i) require Pledgor to, and Pledgor shall,
periodically deliver to Agent records and schedules, which show the ownership status of the Collateral and such other matters which affect the Collateral; (ii) during normal business hours and
upon two (2) Business Days prior notice given orally or in writing to Pledgor, verify the Collateral and inspect the books and records of each Borrower and make copies of or extracts from the
books and records; and (iii) notify any prospective buyers or transferees of the Collateral or any other persons of Agent's interest in the Collateral. Pledgor agrees that Agent may at any time
take such steps as Agent deems reasonably necessary to protect Agent's interest in and to preserve the Collateral. 

        7.     Events of Default. The occurrence of any one or more of the following events shall constitute an event of default (an
"Event of Default") under this Agreement: 

        (a)   breach
of any covenant, representation or warranty of Pledgor hereunder which is not cured within thirty (30) days after written notice thereof from Agent to
Pledgor; provided, however, if such breach
cannot by its nature be cured within thirty (30) days, and Pledgor diligently pursues the curing thereof (and then in all events cures such failure within ninety (90) days after the
original notice thereof), Pledgor shall not be in default hereunder; provided, further, that such cure period shall not apply to the breach of any representation or warranty which, by its nature, is
not curable; or 

        (b)   the
occurrence of an Event of Default under the Loan Agreement or any other Loan Document. 

        8.     Rights of Agent Following Event of Default. Upon the occurrence and continuance of an Event of Default, at the option of
Agent or at the direction of the Requisite Lenders, the Indebtedness (as 

4

 

defined
in the Loan Agreement) shall become immediately due and payable upon written notice to Pledgor or Borrowers and Agent and Lenders shall be entitled to all of the rights and remedies provided
in the Loan Documents or at law or in equity. Each remedy provided in the Loan Documents is distinct and cumulative to all other rights or remedies under the Loan Documents or afforded by law or
equity, and may be exercised concurrently, independently, or successively, in any order whatsoever. In addition to all other rights and remedies granted to it under this Agreement, the Loan Agreement
and the other Loan Documents, if any Event of Default shall have occurred and be continuing and upon either acceleration of the Loan in accordance with the terms and conditions of the Loan Agreement
or the maturity of the Loan and Borrowers fail to pay the Indebtedness, Agent may do one or more of the following: 

        (a)   Proceed
to perform or discharge any and all of Pledgor's obligations, duties, responsibilities, or liabilities and exercise any and all of its rights in connection with
the Collateral for such period of time as Agent may deem appropriate, with or without the bringing of any legal action in or the appointment of any receiver by any court; 

        (b)   Do
all other acts which Agent may deem necessary or proper to protect Agent's security interest in the Collateral and carry out the terms of this Agreement; 

        (c)   Exercise
all voting and management rights of Pledgor as to Borrowers or otherwise pertaining to the Collateral, and Pledgor, forthwith upon the request of Agent, shall
use its best efforts to secure, and cooperate with the efforts of Agent to secure (if not already secured by Agent), all the benefits of such voting and management rights. 

        (d)   Sell
the Collateral in any manner permitted by the UCC; and upon any such sale of the Collateral, Agent may (i) bid for and purchase the Collateral and apply the
expenses of such sale (including, without limitation, reasonable attorneys' fees) as a credit against the purchase price or (ii) apply the proceeds of any sale or sales to other persons or
entities, in whatever order Agent in its sole discretion may decide, to the expenses of such sale (including, without limitation, reasonable attorneys' fees), to
the Indebtedness (as defined in the Loan Agreement), and the remainder, if any, shall be paid to Pledgor or to such other person or entity legally entitled to payment of such remainder; and 

        (e)   Proceed
by suit or suits in law or in equity or by any other appropriate proceeding or remedy to enforce the performance of any term, covenant, condition, or agreement
contained in this Agreement, and institution of such a suit or suits shall not abrogate the rights of Agent to pursue any other remedies granted in this Agreement or in any other Loan Document or to
pursue any other remedy available to Agent either at law or in equity. 

        Agent
shall have all of the rights and remedies of a secured party under the UCC and other applicable laws. All reasonable costs and expenses, including reasonable attorneys' fees and
expenses, incurred or paid by Agent in exercising or protecting any interest, right, power or remedy conferred by this Agreement, shall bear interest thereafter at the Default Rate (as defined in the
Loan Agreement) from the date of payment until repaid in full and shall, along with the interest thereon, constitute and become a part of the Obligations secured by this Agreement. 

        Pledgor
hereby constitutes Agent as the attorney-in-fact of Pledgor after the occurrence of an Event of Default under the Loan Documents (including but not
limited to this Agreement) and upon either acceleration of the Loan in accordance with the terms and conditions of the Loan Agreement or the maturity of the Loan and Borrowers fail to pay the
Indebtedness, Agent may take such actions and execute such documents as Agent may deem appropriate in the exercise of the rights and powers granted to Agent in this Agreement, including, but not
limited to, filling-in blanks in the Transfer Power to cause a transfer of the Ownership Interests and other Collateral pursuant to a sale of the Collateral. The power of attorney granted
hereby shall be irrevocable and coupled with an interest and 

5

 

shall
terminate only upon the payment in full of the Obligations. Pledgor shall indemnify and hold Agent harmless for all losses, costs, damages, fees, and expenses suffered or incurred in connection
with the exercise of this power of attorney and shall release Agent from any and all liability arising in connection with the exercise of this power of attorney, except that Pledgor shall have no
obligation to indemnify or release Agent under this Section 8 with respect to matters arising from or as a result of Agent's gross negligence or willful misconduct. 

        9.     Performance by Agent. During the continuance of an Event of Default and upon either acceleration of the Loan in accordance
with the terms and conditions of the Loan Agreement or the maturity of the Loan and Borrowers fail to pay the Indebtedness, Agent, without waiving or releasing any of the Obligations or any Event of
Default, may (but shall be under no obligation to) at any time thereafter perform such conditions, terms or covenants for the account and at the expense of Pledgor, and may enter upon the premises of
Pledgor for that purpose and take all such action on the premises as Agent may consider necessary or appropriate for such purpose. All sums paid or advanced by Agent in connection with the foregoing
and all costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) incurred in connection with the foregoing, together with interest thereon at the Default Rate, from
the date of payment until repaid in full, shall be paid by Pledgor to Agent on demand and shall constitute and become a part of the Obligations secured by this Agreement. 

        10.   Indemnification. Neither Agent nor Lenders shall in any way be responsible for the performance or discharge of, and
neither Agent nor Lenders hereby undertakes to perform or discharge of, any obligation, duty, responsibility, or liability of Pledgor in connection with the Collateral or otherwise. Pledgor hereby
agrees to indemnify Agent and Lenders and hold Agent and Lenders harmless from and against all losses, liabilities, damages, claims, or demands suffered or incurred by reason of this Agreement or by
reason of any alleged responsibilities or undertakings on the part of Agent or Lenders to perform or discharge any obligations, duties, responsibilities, or liabilities of Pledgor in connection with
the Collateral or otherwise; provided, however, that the foregoing indemnity and agreement to hold harmless shall not apply to losses, liabilities, damages, claims, or demands suffered or incurred as
a result of Agent's or any Lender's own gross negligence or willful misconduct. Upon written request by Agent or Requisite Lenders, Pledgor will undertake, at its own cost and expense, on behalf of
Agent and Lenders, using counsel reasonably satisfactory to Agent, the defense of any legal action or proceeding whether or not Agent or Lenders shall be a party and for which Agent or Lenders is
entitled to be indemnified pursuant to this Section 10; provided, however, at Agent's or Requisite Lenders' option and upon prior written notice to Pledgor, Agent may, at Pledgor's expense,
prosecute or defend any third party claim or action involving the validity or enforceability of Agent's liens on the Collateral or this Agreement. Agent shall have no duty to collect any amounts due
or to become due in connection with the Collateral or enforce or preserve Pledgor's rights under this Agreement. 

        11.   Termination. Upon indefeasible payment in full of the Obligations, and termination of any further obligation of Lenders
to extend any credit to Borrowers under the Loan Documents, this Agreement shall terminate and Agent shall promptly execute appropriate documents to evidence such termination. 

        12.   Release. Without prejudice to any of Agent's rights under this Agreement, Agent may take or release other security for
the payment or performance of the Obligations, may release any party primarily or secondarily liable for the Obligations, and may apply any other security held by Agent to the satisfaction of the
Obligations. 

        13.   Pledgor's Liability Absolute. The liability of Pledgor under this Agreement shall be direct and immediate and not
conditional or contingent upon the pursuit of any remedies against Pledgor or any other person, nor against other securities or liens available to Agent, its successors, assigns, or agents. Pledgor
waives any right to require that resort be had to any security or to any balance of any deposit account or credit on the books of Agent in favor of any other person. 

6

 

        14.   Preservation of Collateral. Agent shall be deemed to have exercised reasonable care in the custody and preservation of
the Collateral and in preserving rights under this Agreement if Agent takes action for those purposes as Pledgor may reasonably request in writing, provided, that failure to comply with any such
request shall not, in and of itself, be deemed a failure to exercise reasonable care, and no failure by Agent to preserve or protect any rights with respect to the Collateral or to do any act with
respect to the preservation of the Collateral not so requested by Pledgor shall be deemed a failure to exercise reasonable care in the custody or preservation of the Collateral. 

        15.   Private Sale. Pledgor recognizes that Agent may be unable to effect a public sale of the Collateral by reason of certain
provisions contained in the federal Securities Act of 1933, as amended, and applicable state securities laws and, under the circumstances then existing, may reasonably resort to a private sale to a
restricted group of purchasers who will be obliged to agree, among other things, to acquire the Collateral for their own account for investment and not with a view to the distribution or resale of the
Collateral. Pledgor agrees that a private sale so made may be at a price and on other terms less favorable to the seller than if the Collateral were sold at public sale and that Agent has no
obligation to delay sale of the Collateral for the period of time necessary to permit Pledgor, even if Pledgor would agree to register or qualify the Collateral for public sale under the Securities
Act of 1933, as amended, and applicable state securities laws. Pledgor agrees that a private sale made under the foregoing circumstances and otherwise in a commercially reasonable manner shall be
deemed to have been made in a commercially reasonable manner under the UCC. 

        16.   General. 

        (a)   Final Agreement and Amendments. This Agreement, together with the other Loan Documents, constitutes the final and entire
agreement and understanding of the parties and any term, condition, covenant or agreement not contained herein or therein is not a part of the agreement and understanding of the parties. Neither this
Agreement, nor any term, condition, covenant or agreement hereof may be changed, waived, discharged or terminated except by an instrument in writing signed by the party against whom enforcement of the
change, waiver, discharge or termination is sought. 

        (b)   Waiver. No party hereto shall be deemed to have waived the exercise of any right which it holds hereunder unless such
waiver is made expressly and in writing (and, without limiting the generality of the foregoing, no delay or omission by any party hereto in exercising any such right shall be deemed a waiver of its
future exercise). No such waiver made in any instance involving the exercise of any such right shall be deemed a waiver as to any other such instance, or any other such right. No single or partial
exercise of any power or right shall preclude other or further exercise of the power or right or the exercise of any other power or right. No course of dealing between the parties hereto shall be
construed as an amendment to this Agreement or a waiver of any provision of this Agreement. No
notice to or demand on Pledgor in any case shall thereby entitle Pledgor to any other or further notice or demand in the same, similar or other circumstances. 

        (c)   Headings. The headings of the Sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only
for convenience of reference, and shall not be considered in construing their contents. 

        (d)   Construction. As used herein, all references made (i) in the neuter, masculine or feminine gender shall be deemed
to have been made in all such genders, (ii) in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well, and (iii) to any
Section, subsection, paragraph or subparagraph shall, unless therein expressly indicated to the contrary, be deemed to have been made to such Section, subsection, paragraph or subparagraph of this
Agreement. The Recitals are incorporated herein as a substantive part of this Agreement and the Pledgor represents and warrants that such Recitals are true and correct. 

7

 

        (e)   Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the Pledgor, Agent and Lenders and
their respective heirs, personal representatives, successors and assigns hereunder. In the event of any assignment or transfer by Agent of any of the Pledgor's obligations under the Loan Documents or
the Collateral therefor, Agent thereafter shall be fully discharged from any responsibility with respect to such Collateral so assigned or transferred, but Agent shall retain all rights and powers
given by this Agreement with respect to any of the Pledgor's obligations under the Loan Documents or Collateral not so assigned or transferred. Pledgor shall have no right to assign or delegate its
rights or obligations hereunder. 

        (f)    Severability. If any term, provision, covenant or condition of this Agreement or the application of such term, provision,
covenant or condition to any party or circumstance shall be found by a court of competent jurisdiction to be, to any extent, invalid or unenforceable, the remainder of this Agreement and the
application of such term, provision, covenant, or condition to parties or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term,
provision, covenant or condition shall be valid and enforced to the fullest extent permitted by law. 

        (g)   Notices. Any notice or other communication required or permitted under this Agreement shall be in writing and sent in
accordance with Section 9.8 of the Loan Agreement. 

        (h)   Remedies Cumulative. Each right, power and remedy of Agent as provided for in this Agreement, or in any of the other Loan
Documents or now or hereafter existing by law, shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Agreement, or in any of the other
Loan Documents or now or hereafter existing by law, and the
exercise or beginning of the exercise by Agent of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by Agent of any other rights, powers or
remedies. 

        (i)    Time of the Essence; Survival; Joint and Several Liability. Time is of the essence of this Agreement and each and every
term, covenant and condition contained herein. All covenants, agreements, representations and warranties made in this Agreement or in any of the other Loan Documents shall continue in full force and
effect so long as any of the obligations of any party under the Loan Documents (other than Agent) remain outstanding. Each persons or entity constituting Pledgor shall be jointly and severally liable
for all of the obligations of Pledgor under this Agreement. 

        (j)    Further Assurances. Pledgor hereby agrees that at any time and from time to time, at the expense of Pledgor, Pledgor will
promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that Agent may reasonably request, in order to perfect and protect any
security interest granted or purported to be granted hereby, or to enable Agent or any of its agents to exercise and enforce its rights and remedies under this Agreement with respect to any portion of
such collateral. 

        (k)   Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be considered to be an
original, but all of which shall constitute one in the same instrument. As used in this Agreement, the term "this Agreement" shall include all attachments, exhibits, schedules, riders and addenda. 

        (l)    Costs. Pledgor shall be responsible for the payment of any and all reasonable fees, costs and expenses which Agent and/or
Lenders may incur by reason of this Agreement, including but not limited to the following: (i) any taxes of any kind related to any property or interests assigned or pledged hereunder;
(ii) expenses incurred in filing public notices relating to any property or interests assigned or pledged hereunder; and (iii) any and all costs, expenses and fees (including, without
limitation, reasonable attorneys' fees and expenses and court costs and fees), whether or 

8

 

not
litigation is commenced, incurred by Agent and/or Lenders in protecting, insuring, maintaining, preserving, attaching, perfecting, enforcing, collecting or foreclosing upon any lien, security
interest, right or privilege granted to Agent and/or Lenders or any obligation of Pledgor under this Agreement, whether through judicial proceedings or otherwise, or in defending or prosecuting any
actions or proceedings arising out of or related to this Agreement or any property or interests assigned or pledged hereunder. 

        (m)  No Defenses. Pledgor's obligations under this Agreement shall not be subject to any set-off, counterclaim or
defense to payment that Pledgor now has or may have in the future. 

        (n)   Cooperation in Discovery and Litigation. In any litigation, trial, arbitration or other dispute resolution proceeding
relating to this Agreement, all directors, officers, employees and agents of Pledgor or of its affiliates shall be deemed to be employees or managing agents of Pledgor for purposes of all applicable
law or court rules regarding the production of witnesses by notice for testimony (whether in a deposition, at trial or otherwise). Pledgor in any event will use all commercially reasonable efforts, in
compliance and in accordance with applicable law, to produce in any such dispute resolution proceeding, at the time and in the manner requested by Agent or any Lender, all persons and entities,
documents (whether in tangible, electronic or other form) or other things under its control and relating to the dispute in any jurisdiction that recognizes that (or any similar) distinction. 

        (o)   GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
ILLINOIS, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS. PLEDGOR, AGENT AND EACH LENDER HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE
COUNTY OF COOK, STATE OF ILLINOIS AND PLEDGOR, AGENT AND EACH LENDER IRREVOCABLY AGREE THAT, SUBJECT TO AGENT'S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS (UNLESS OTHERWISE SPECIFIED THEREIN) SHALL BE LITIGATED IN SUCH COURTS. PLEDGOR, AGENT AND EACH LENDER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS
AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. PLEDGOR, AGENT AND EACH LENDER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON
PLEDGOR, AGENT AND EACH LENDER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO PLEDGOR, AGENT AND LENDERS AT THE ADDRESSES SET FORTH IN SECTION 10.7 OF THE LOAN
AGREEMENT.

        (p)   WAIVER OF JURY TRIAL. PLEDGOR, AGENT AND EACH LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. PLEDGOR, AGENT AND EACH LENDER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH OF THEM HAS RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THAT EACH OF THEM WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.
PLEDGOR, AGENT AND LENDERS WARRANT AND REPRESENT THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS.

        (q)   Loan Agreement Governs. The Loan is governed by the terms and conditions set forth in the Loan Agreement and the other
Loan Documents, and in the event of any conflict between the 

9

 

terms
of this Agreement and the terms of the Loan Agreement, the terms of the Loan Agreement shall control; provided, however, that in the event there is any apparent conflict between any particular
term or condition which appears in both this Agreement and the Loan Agreement and it is possible and reasonable for the terms of both this Agreement and the Loan Agreement to be performed or complied
with, then notwithstanding the foregoing, both the terms of this Agreement and the Loan Agreement shall be performed and complied with. 

SIGNATURE PAGE FOLLOWS  

10

 

        IN WITNESS WHEREOF, intending to be legally bound, and intending that this instrument constitute an instrument
executed under seal, each of the parties hereto has caused this Ownership Pledge, Assignment and Security Agreement to be executed under seal as of the day and year first above written. 

	 	 	PLEDGOR:
	
 	
 	

OMEGA HEALTHCARE INVESTORS, INC., a Maryland corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Daniel J. Booth

Title: Chief Operating Officer
	

 	
 	
AGENT:
	

 	
 	

GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Brad Haber

Title: Authorized Signatory

11

NOTICE OF PLEDGE  

	TO:
	Omega
Acquisition Facility I, LLC and each other entity which is hereafter joined to the Loan Agreement as a Borrower 

        Notice
is hereby given that, pursuant to an Ownership Pledge, Assignment and Security Agreement of even date with this Notice of Pledge (the
"Agreement"), from the undersigned (the "Pledgor") to General Electric Capital Corporation, as Agent for
the Lenders ("Agent"), in connection with financing arrangements in effect between Lenders and Borrowers, Pledgor has pledged and assigned to Agent and
granted to Agent, for the benefit of itself and Lenders, a continuing first priority security interest in, all of its right, title and interest, whether now existing or hereafter arising or acquired,
in, to, and under the following (collectively, the "Collateral"): 

        (a)   all
of the stock, shares, member interests and other equity ownership interests in each Borrower now or hereafter held by Pledgor (collectively, the
"Ownership Interests") and all of the Pledgor's rights to participate in the management of each Borrower, all rights, privileges, authority and powers
of the Pledgor as owner or holder of its Ownership Interests in each Borrower, including, but not limited to, all contract rights and voting rights related thereto, all rights, privileges, authority
and powers relating to the economic interests of the Pledgor as owner or holder or its Ownership Interests in each Borrower, including, without limitation, all contract rights related thereto, all
options and warrants of the Pledgor for the purchase of any Ownership Interests in each Borrower, all documents and certificates representing or evidencing the Pledgor's Ownership Interests in each
Borrower, all of Pledgor's right, title and interest to receive payments of principal and interest on any loans and/or other extensions of credit made by the Pledgor to each Borrower, and any other
right, title, interest, privilege, authority and power of the Pledgor in or relating to each Borrower, all whether now existing or hereafter arising, and whether arising under any operating agreement
of each Borrower (as the same may be amended, modified or restated from time to time), and the certificate of formation or existence of each Borrower (as the same may be amended, modified or restated
from time to time) or otherwise, or at law or in equity and all books and records of the Pledgor pertaining to any of the foregoing and all options, warrants, distributions, investment property, cash,
instruments and other rights and options from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such interests, and the Pledgor shall promptly
thereafter deliver to Agent a certificate duly executed by the Pledgor describing such percentage interests, options or warrants and certifying that the same have been duly pledged hereunder; 

        (b)   all
rights to receive cash distributions, profits, income, losses and capital distributions (including, but not limited to, distributions in kind and liquidating
dividends) and any other rights and property interests related to the Ownership Interests; 

        (c)   all
other securities, instruments or property (including cash) paid or distributed in respect of or in exchange for the Ownership Interests, whether or not as part of or
by way of spin-off, merger, consolidation, dissolution, reclassification, combination or exchange of stock (or other ownership interests), asset sales, or similar rearrangement or
reorganization or otherwise; and 

        (d)   all
proceeds (both cash and non-cash) of the foregoing, whether now or hereafter arising under the foregoing. 

        Pursuant
to the Agreement, each Borrower is hereby authorized and directed to: 

	(i)
	register
on its books Pledgor's pledge to Agent of the Collateral; and

	(ii)
	upon
the occurrence of an Event of Default under the Agreement (or prior thereto, as may be required under the Agreement) and written notice from Agent to Borrowers or
Pledgor, make direct payment to Agent of any amounts due or to become due to Pledgor that are attributable, directly or indirectly, to Pledgor's ownership of the Collateral. 

        Pledgor
hereby requests Borrowers to indicate their acceptance of this Notice of Pledge and consent to and confirmation of its terms and provisions by signing a copy of this Notice of
Pledge where indicated below and returning it to Agent. 

SIGNATURE PAGE FOLLOWS  

 

        Dated as of December 31, 2003 

	 	 	PLEDGOR:
	
 	
 	

OMEGA HEALTHCARE INVESTORS, INC., a Maryland corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Daniel J. Booth

Title: Chief Operating Officer
	
ACKNOWLEDGED BY THE BORROWERS AS OF THE 31st DAY OF DECEMBER, 2003:
	

 	
 	

BORROWERS:
	
 	
 	

OMEGA ACQUISITION FACILITY I, LLC., a Delaware limited liability company
	

 	
 	

By:	
 	

Omega Healthcare Investors, Inc., a Maryland corporation, as the sole member of such company
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Daniel J. Booth

Title: Chief Operating Officer

2

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OWNERSHIP PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT

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