Document:

EX-10.24

 Exhibit 10.24 

MODIFICATION AGREEMENT 

Loan No. 3327114701 
 THIS
MODIFICATION AGREEMENT (“Agreement”) dated as of November 7, 2013 is entered into by and between WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”), and THE ACADEMY REAL ESTATE, LLC, a Delaware limited liability company
(“Borrower”). 
 RECITALS 
  

	A.	Pursuant to that certain Loan Agreement dated May 10, 2013 (“Loan Agreement”), Lender has made a loan to Borrower in the principal amount of THREE MILLION SIX HUNDRED SEVEN THOUSAND FIVE HUNDRED AND
NO/IOOTHS DOLLARS ($3,607,500.00) (“Loan”). The Loan is evidenced by that certain Promissory Note Secured by Mortgage dated May 10, 2013 (“Note”). The Note is secured, in part, by that certain Mortgage and Assignment
dated May 10, 2013, from Borrower in favor of Lender, which was recorded on May 13, 2013, in the public records of Hillsborough County, Florida (“Official Records”), as Instrument Number 2013186456 in Book 21874, Pages 1407-1424
(“Mortgage”), encumbering certain real property and improvements located in Hillsborough County, Florida (“Property”), as legally defined therein. 

 

	B.	The outstanding principal balance of the Loan is $3,607,500.00. 

  

	C.	In connection with the Loan, Michael Cartwright, an individual, Jerrod Menz, an individual, and American Addiction Centers, Inc., a Nevada corporation (collectively “Guarantor”), each guaranteed certain
obligations of Borrower under the Note pursuant to a Repayment Guaranty, dated May 10, 2013 (“Guaranty”). 

  

	D.	The Note, the Mortgage, the Guaranty, this Agreement, the other documents described in the Note as “Loan Documents”, together with all modifications and amendments thereto and any document required hereunder,
are collectively referred to herein as the “Loan Documents”. 

  

	E.	The Maturity Date (as defined in the Note) of the Loan is November 10, 2013. Borrower has requested that Lender agree to extend the Maturity Date to February 10, 2014. Lender is prepared to so extend the
Maturity Date, subject to the terms and conditions set forth in this Agreement. 

  

	F.	By this Agreement, Borrower and Lender intend to modify and amend certain terms and provisions of the Loan Documents. 

NOW, THEREFORE, Borrower and Lender agree as follows: 
  

	1.	RECITALS; DEFINED TERMS. The foregoing recitals arc incorporated herein by this reference and Borrower hereby acknowledges that such recitals are true and correct in all material respects. Capitalized
terms used, but not otherwise defined, herein shall have the respective meanings set forth in the Loan Documents. 

  

	2.	CONDITIONS PRECEDENT. The following are conditions precedent to Lender’s obligations under this Agreement: 

  

	 	2.1	Receipt by Lender of an executed original of this Agreement; 

  

	 	2.2	Guarantor shall have consented to the extension of the Maturity Date as provided in this Agreement and shall have reaffirmed its obligations under the Guaranty by each executing the Guarantor’s Consent attached
hereto; 

  
 1 

	 	2.3	Reimbursement to Lender by Borrower of Lender’s costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby, including, without limitation, reasonable attorneys’
fees, and documentation costs and charges, whether such services arc furnished by Lender’s employees or agents or by independent contractors; 

  

	 	2.4	No Default shall have occurred and be continuing; 

  

	 	2.5	The representations and warranties contained in this Agreement are true and correct; and 

  

	 	2.6	All payments due and owing to Lender under the Loan Documents have been paid current as of the effective date of this Agreement. 

  

	3.	REPRESENTATIONS AND WARRANTIES. Borrower hereby represents and warrants that no breach or failure of condition has occurred, or would exist with notice or the lapse of time or both, under any of the Loan
Documents (as modified by this Agreement) and that all representations and warranties herein and in the other Loan Documents arc true and correct, which representations and warranties shall survive execution of this Agreement. 

 

	4.	MODIFICATION OF LOAN DOCUMENTS. The Loan Documents are hereby supplemented and modified to incorporate the following, which shall supersede and prevail over any conflicting provisions of the Loan Documents:

  

	 	4.1	The Maturity Date of the Loan, as set forth in Section 1.3 of the Loan Agreement and in Section 5 of the Note, is hereby amended by deleting the reference therein to “November 10, 2013” and
substituting therefor a reference to “February 10, 2014”. From and after the date of this Agreement, each reference in the Loan Documents to the “Maturity Date” shall be deemed to refer to February 10, 2014.

  

	5.	FORMATION AND ORGANIZATIONAL DOCUMENTS. Borrower has previously delivered to Lender all of the relevant formation and organizational documents of Borrower and of all guarantors of the Loan, and all such formation
documents remain in full force and effect and have not been amended or modified since they were delivered to Lender. Borrower hereby certifies that: (i) the above documents are all of the relevant formation and organizational documents of
Borrower; (ii) they remain in full force and effect; and (iii) they have not been amended or modified since they were previously delivered to Lender. 

  

	6.	HAZARDOUS MATERIALS. Without in any way limiting any other provision of this Agreement, Borrower expressly reaffirms as of the date hereof, and continuing hereafter: (i) each and every representation and
warranty in the Loan Documents respecting “Hazardous Materials”; and (ii) each and every covenant and indemnity in the Loan Documents respecting “Hazardous Materials”. 

 

	7.	WAIVERS. In further consideration of Lender entering into this Agreement, Borrower waives, with respect to the Loan, any and all rights to which Borrower is or may be entitled pursuant to any anti deficiency or
similar laws which limit, qualify or reduce Borrower’s obligations under the Loan Documents. 

  

	8.	NON-IMPAIRMENT; RESERVATION OF RIGHTS. Except as expressly provided herein, nothing in this Agreement shall alter or affect any provision, condition, or covenant contained in the Note or other Loan Documents or
affect or impair any rights, powers, or remedies of Lender, it being the intent of the parties hereto that the provisions of the Note and other Loan Documents shall continue unmodified and in full force and effect except as expressly modified
hereby. Without limiting the generality of the foregoing. Lender’s agreement to extend the Maturity Date of the Loan as provided herein shall not constitute a waiver of Lender’s right to exercise its rights and remedies under the Guaranty,
the Note, the Mortgage or the other Loan Documents. 

  
 2 

	9.	MISCELLANEOUS. This Agreement and the other Loan Documents shall be governed by and interpreted in accordance with the laws of the State of California, except if preempted by federal law. In any action brought or
arising out of this Agreement or the Loan Documents, Borrower hereby consents to the jurisdiction of any federal or state court having proper venue within the State of California and also consent to the service of process by any means authorized by
California or federal law. The headings used in this Agreement are for convenience only and shall be disregarded in interpreting the substantive provisions of this Agreement. All capitalized terms used herein, which are not defined herein, shall
have the meanings given to them in the other Loan Documents. Time is of the essence of each term of the Loan Documents, including this Agreement. If any provision of this Agreement or any of the other Loan Documents shall be determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from this Agreement and the remaining parts shall remain in full force as though the invalid, illegal, or unenforceable portion had never been a
part thereof. 

  

	10.	INTEGRATION; INTERPRETATION. The Loan Documents, including this Agreement, contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated therein
and supersede all prior negotiations or agreements, written or oral. The Loan Documents shall not be modified except by written instrument executed by all parties. Any reference to the Loan Documents includes any amendments, renewals or extensions
now or hereafter approved by Lender in writing. 

  

	11.	EXECUTION IN COUNTERPARTS. To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of
each party, or that the signature of all persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single document. It shall not be necessary in making proof of this document to produce or
account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the
signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. 

  
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 IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be duly executed as of the date first above
written. 
 “BORROWER” 
 THE ACADEMY REAL ESTATE,
LLC, 
 a Delaware limited liability company 
  

					
	By:	 	American Addiction Centers, Inc.,
		 	a Nevada corporation
		 	its sole member
			
		 	By:	 	 /s/ Michael T. Cartwright

		 	Name:	 	 Michael T. Cartwright

		 	Title:	 	 CEO

“LENDER” 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

 

			
	By:	 	 /s/ Marcus Di Fiore

	Name:	 	Marcus Di Fiore
	Title:	 	Vice President

  
 4 

 GUARANTOR’S CONSENT 

Each of the undersigned (collectively, “Guarantor”), consents to the foregoing Modification Agreement and the transactions contemplated
thereby, including, without limitation, the extension of the Maturity Date from November 10, 2013 to February 10, 2014 and each reaffirms his or its obligations under that certain Repayment Guaranty (“Guaranty”) dated as
of May 10, 2013, and his or its waivers, as set forth in the Guaranty, of each and every one of the possible defenses to such obligations. Guarantor further reaffirms that his or its obligations under the Guaranty are separate and distinct from
Borrower’s obligations. 
 Dated as of: November 7, 2013 

“GUARANTOR” 
  

	
	 /s/ Michael T. Cartwright

	MICHAEL CARTWRIGHT, an individual

  

	
	 /s/ Jerrod Menz

	JERROD MENZ, an individual

 AMERICAN ADDITION CENTERS, INC., 

a Nevada corporation 
  

			
	By:	 	 /s/ Michael T. Cartwright

	Name:	 	 Michael T. Cartwright

	Title:	 	 CEO

  
 5EX-10.25

 Exhibit 10.25 

CONSENT AND AMENDMENT TO LOAN AGREEMENT AND NOTE 

THIS CONSENT AND AMENDMENT TO LOAN AGREEMENT AND NOTE (this “Agreement”) is entered into as of April 15, 2014 (the
“Effective Date”), by and among THE ACADEMY REAL ESTATE, LLC, a Delaware limited liability company (“Borrower”), MICHAEL T. CARTWRIGHT (“Cartwright”), JERROD N. MENZ (“Menz”), AMERICAN ADDICTION CENTERS, INC.,
a Nevada corporation (“AAC”), BEHAVIORAL HEALTHCARE REALTY, LLC, a Delaware limited liability company (“BHR” and, together with AAC, Cartwright and Menz, each a “Guarantor” and collectively “Guarantors”), and
WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”). 
 R E C I T A L S 

WHEREAS, Borrower and Guarantors are hereinafter collectively called the “Borrower Parties”; 

WHEREAS, Lender made a loan to Borrower, in the amount of $3,607,000.00 (the “Loan”), and in connection with the Loan, Borrower
executed and delivered to Lender that certain Promissory Note Secured by Mortgage (the “Note”) dated May 10, 2013, as amended by the Modification Agreement thereto, dated as of November 7, 2013 (the “Modification
Agreement”), payable to the order of Lender in the original principal sum of $3,607,000.00, with interest and principal payable as therein provided. 

WHEREAS, the payment of the Note is secured or further evidenced, inter alia, by: 

 

	 	(i)	that certain Loan Agreement dated May 10, 2013 by and between Borrower and Lender, as amended by the Modification Agreement (“Loan Agreement”); and 

 

	 	(ii)	that certain Mortgage and Assignment (“Mortgage”) of even date therewith, recorded under Instrument # 2013186456 with the Clerk of the Circuit Court For Hillsborough County, Florida (the “Records”),
encumbering certain real and personal property described therein (the “Property”); 

  

	 	(iii)	that certain Repayment Guaranty of even date therewith executed by Guarantors in favor of Lender, as amended by the Amendment and Joinder (as defined below) (the “Guaranty”); and 

 

	 	(iv)	certain other Loan Documents. 

 WHEREAS, as of the Effective Date, Cartwright, Menz and Kirk
Manz will transfer of all of the common equity interests of BHR to AAC Holdings, Inc. (“AACH”) (collectively, the “Initial BHR Equity Transfer”), and thereafter (i) AACH will transfer of all of the common equity interests of
BHR from AAC Holdings, Inc. to AAC, (ii) a merger sub that is 100% owned by AACH will merge with and into AAC pursuant to which AAC will become a direct wholly owned subsidiary of AACH and (iii) AAC may convert from a corporation into a
limited liability company or other limited liability entity (collectively, the “Subsequent BHR Transactions”, and together with the Initial BHR Equity Transfer, the “Approved Transactions”), provided that the Subsequent BHR
Transactions shall be consummated on or prior to March 31, 2015 and Borrower will notify Lender in writing promptly (but, in any event within thirty (30) days) after the consummation of the Subsequent BHR Transactions. 

WHEREAS, BHR is and shall remain the sole member of Borrower and, upon the effectiveness of the Approved Transactions, the ownership structure
of Borrower shall be as set forth on Exhibit A attached hereto and incorporated herein by reference; 
 WHEREAS, Borrower Parties have
requested Lender’s consent to the Approved Transactions and the extension of the Maturity Date to July 14, 2014, and Lender is willing to so consent upon compliance with the terms and provisions of this Agreement; 

WHEREAS, Lender is the owner and holder of the Note and Borrower is the owner of the legal and equitable title to the Property; 

  
 1 

 NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00), the matters set forth in the
foregoing recitals, the estoppels, certifications, warranties, covenants and agreements set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree
as follows: 
 1. Defined Terms; Interpretation. All capitalized terms used in this Agreement (including in the recitals hereof) and
not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement. 
 2. Consent to Approved Transactions.
Lender hereby approves and consents to the Approved Transactions; provided that (i) the Initial BHR Equity Transfer shall be consummated on or prior to the Effective Date and (ii) the Subsequent BHR Transactions shall be consummated on or
prior to March 31, 2015 and Borrower shall notify Lender in writing promptly (but, in any event within thirty (30) days) after the consummation of the Subsequent BHR Transactions. Lender acknowledges and agrees that, notwithstanding any
provision in the Loan Documents to the contrary, the Approved Transactions shall not constitute a default under the Mortgage or the other Loan Documents. Lender’s acknowledgment shall not be construed as a consent to any subsequent transfer
which requires Lender’s consent pursuant to the terms of the Loan Documents. 
 3. Amendments to Loan Agreement. 

(a) All references in the Loan Agreement and other Loan Documents to a Guarantor or Guarantors or a Indemnitor or Indemnitors
shall refer to each of the Guarantors referred to in this Agreement, including BHR, and each of the Repayment Guaranty and the Unsecured Hazardous Materials Indemnity Agreement delivered by the Guarantors (including BHR) shall for all purposes
constitute a Loan Document. In connection with this Agreement, (i) the Guarantors shall deliver an Amendment and Joinder to Repayment Guaranty and Hazardous Materials Indemnity Agreement, dated as of the Effective Date, to Lender (the
“Amendment and Joinder”) and (ii) BHR shall deliver a Limited Liability Company Certificate Authorizing Limited Liability Company Activity and Execution of Guaranty and Indemnity to Lender. 

(b) Section 6.9 of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 

“6.9 DERIVATIVE DOCUMENTS. 

On or prior to December 31, 2014, Borrower shall enter into an interest rate swap transaction with Lender or with another counterparty
reasonably acceptable to Lender (such transaction, together with all documents and agreements relating thereto, including any ISDA Master Agreement, Schedule and/or Confirmation, together with all modifications, extensions, renewals and replacement
thereof, is hereinafter referred to as the “Swap Contract”) to cover a notional amount of not less than 100% of the outstanding principal amount of the Loan for the full term of the Loan and shall maintain in full force and effect such
Swap Contract for the full term of the Loan.” 
 (c) Section 8.1(k) of the Loan Agreement is hereby amended by
inserting the following at the end thereof: 
 “, or any Disqualified Equity Interests of Borrower, any Guarantor or any of their
respective subsidiaries shall be payable or otherwise be required to be paid (if the required payments exceed in the aggregate $500,000) or an event of default (if the outstanding amount of such Disqualified Equity Interests exceeds $500,000)
thereunder shall occur. As used herein, the term “Disqualified Equity Interests” means any equity interest that, by its terms (or by the terms of any security or other equity interests into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (i) matures or is mandatorily redeemable (other than solely for Qualified 

  
 2 

 
Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of
a change of control or asset sale event shall be subject to the prior repayment in full of the Loan), (ii) is redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part,
(iii) provides for the scheduled payments of dividends in cash, or (iv) is or becomes convertible into or exchangeable for indebtedness or any other equity interests that would constitute Disqualified Equity Interests, in each case, prior
to the date that is 180 days after the latest maturity date of the Loan; and the term “Qualified Equity Interests” means any equity interests issued by AAC Holdings, Inc., a Nevada corporation (“Holdings”), (and not by any of its
subsidiaries) that is not a Disqualified Equity Interest.” 
 (d) Exhibit B (Documents) to the Loan Agreement is hereby
amended by including item 2.1 (Repayment guaranty executed by Guarantor in favor of Lender) and item 2.2 (Unsecured Hazardous Materials Indemnity Agreement executed by Guarantor in favor of Lender) in the definition of “Loan Documents”.

 4. Extension of Maturity Date. The Maturity Date of the Loan, as set forth in Section 1.3 of the Loan Agreement and in
Section 5 of the Note, is hereby amended by deleting the reference therein to “February 10, 2014” and substituting therefor a reference to “July 14, 2014”. From and after the date of this Agreement, each reference in the
Loan Documents to the “Maturity Date” shall be deemed to refer to July 14, 2014. 
 5. Representations, Warranties and
Covenants of the Borrower Parties. The Borrower Parties hereby represent, warrant, certify and covenant to Lender that: 

(a) The Borrower Parties understand and hereby acknowledge all of the terms and provisions of the Loan Documents. 

(b) Each person executing this Agreement as a representative of the Borrower Parties has been duly authorized and has full
power to execute and deliver this Agreement on behalf of the Borrower Parties and to bind the Borrower Parties to the terms and conditions hereof and thereof. 

(c) The representations, warranties and certifications set forth herein are given with the knowledge that Lender will rely upon
the truth of the statements made herein. 
 (d) To the knowledge of Borrower Parties, no Default exists under any of the Loan
Documents and no condition or event has occurred and is continuing which after notice and/or the lapse of time would constitute a Default under the Loan Documents. 

(e) This Agreement constitutes the legal, valid and binding obligations of the Borrower Parties, as applicable, enforceable in
accordance with their terms. 
 (f) The execution and delivery of, and performance under this Agreement are within the
Borrower Parties’ power and authority without the joinder or consent of any other party and have been duly authorized by all requisite action and are not in contravention of law or the Borrower Parties’ respective organizational
agreement(s), or any indenture, agreement or undertaking to which any of the Borrower Parties is a party or by which any of them is bound. 

6. Further Assurances. The Borrower Parties, upon request from Lender, agree to execute such other and further documents as may be
reasonably necessary or appropriate to consummate the transactions contemplated herein or to perfect the liens and security interests intended to secure the payment of the Loan. 

7. Effect of Amendment; Other Provisions Unchanged. On and after the Effective Date, each reference in the Loan Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Loan Agreement, and each reference in the other Loan Documents to the “Loan Agreement”, “thereunder”,
“thereof” or words of like import referring to the Loan Agreement shall mean and be a reference to the Loan Agreement, as amended by this Agreement. On and after the Effective Date, each reference in the Note to “this Note”,
“hereunder”, “hereof’, “herein” or words of like import referring to the Note, and each reference in the other Loan Documents to the “Note”, “thereunder”, “thereof” or words of like import
referring to the Note shall mean and be a reference to the Note, as amended by this Agreement. Except as specifically provided herein, the terms and provisions of the Loan Documents shall remain unchanged and shall remain in full force and effect.
In particular, this Agreement shall each be construed as a Loan Documents. 

  
 3 

 8. Lien Status. Borrower hereby acknowledges and agrees that all liens, security
interests, mortgages and assignments granted or created by or existing under the Deeds of Trust and the other Loan Documents remain unchanged and continue, unabated, in full force and effect, to secure Borrower’s obligation to repay the Note.

 9. Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had
signed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. 

10. Severability of Provisions. If any covenant, condition, or provision herein contained is held to be invalid by final judgment of
any court of competent jurisdiction, the invalidity of such covenant, condition, or provision shall not in any way affect any other covenant, condition or provision herein contained. 

11. Time of the Essence. It is expressly agreed by the parties hereto that time is of the essence with respect to this Agreement. 

12. Representation by Counsel. The parties acknowledge and confirm that each of their respective attorneys has participated jointly in
the review and revision of this Agreement and that it has not been written solely by counsel for one party. The parties hereto therefore stipulate and agree that the rule of construction to the effect that any ambiguities are to or may be resolved
against the drafting party shall not be employed in the interpretation of this Agreement to favor either party against the other. 
 13.
Successors and Assigns. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns, including, each other person or entity which holds or
which may hereafter hold an interest in any of the Loan Documents and any person or entity which acquires all or any part of the Property including by purchase of the Property at a foreclosure sale or by acceptance of a deed in lieu of foreclosure.

 14. Paragraph Headings. The paragraph headings set forth in this Agreement are for the convenience of the parties only, and shall
in no way enlarge or limit the scope or meaning of the various and several paragraphs in this Agreement. 
 15. Governing Law. This
Agreement and the rights and duties of the parties hereunder shall be governed for all purposes by the law of the State of California and the law of the United States applicable to transactions within said State. 

16. Reaffirmation. Each of the Guarantors hereby acknowledges and agrees that the Guaranty and the other Loan Documents to which it is
a party shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement. Each Guarantor acknowledges and
agrees that (i) such Guarantor is not required by the terms of the Loan Agreement or any other Loan Document to consent to the amendments to the Loan Agreement effected pursuant to this Agreement and (ii) nothing in the Loan Agreement,
this Agreement or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendments to the Loan Agreement. The Borrower and the Guarantors hereby confirm that the Maturity Date of the Loan is July 14,
2014. 
 17. General Release. 

(a) Effective on the date hereof, each Borrower Party, for itself and on behalf of its successors, assigns, and officers,
directors, employees, agents and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby waives, releases, remises and forever discharges Lender, each of its Affiliates, and each of its successors in title, past, present
and future officers, directors, employees, limited partners, general partners, investors, attorneys, assigns, subsidiaries, shareholders, trustees, agents 

  
 4 

 
and other professionals and all other Persons to whom any member of the Lender would be liable if such Persons were found to be liable to such Borrower Party (each a “Releasee” and
collectively, the “Releasees”), from any and all past, present and future claims, suits, liens, lawsuits, adverse consequences, amounts paid in settlement, debts, deficiencies, diminution in value, disbursements, demands, obligations,
liabilities, causes of action, damages, losses, costs and expenses of any kind or character, whether based in equity, law, contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law (each a
“Claim” and collectively, the “Claims”), whether known or unknown, fixed or contingent, direct, indirect, or derivative, asserted or unasserted, matured or unmatured, foreseen or unforseen, past or present, liquidated or
unliquidated, suspected or unsuspected, which such Borrower Party ever had from the beginning of the world to the date hereof, now has, or might hereafter have against any such Releasee which relates, directly or indirectly to the Loan Agreement,
any other Loan Document, or to any acts or omissions of any such Releasee with respect to the Loan Agreement or any other Loan Document, or to the lender-borrower relationship evidenced by the Loan Documents. As to each and every Claim released
hereunder, each Borrower Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the
Civil Code of California which provides as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR” 

As to each and every Claim released hereunder, each Borrower Party also waives the benefit of each other similar provision of
applicable federal or state law (including without limitation the laws of the state of California), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto. 

Each Borrower Party acknowledges that it may hereafter discover facts different from or in addition to those now known or
believed to be true with respect to such Claims and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Borrower Party understands, acknowledges and agrees that the
release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release. 
 (b) Each Borrower Party, for itself and on behalf of its successors, assigns, and officers, directors, employees,
agents and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee above that it will not sue (at law, in equity, in
any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by such Person pursuant to the above release. Each Borrower Party further agrees that it shall not dispute the validity or enforceability
of the Loan Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Lender’s lien on any item of collateral under the Loan Agreement or the other Loan
Documents. If any Borrower Party or any of their respective successors, assigns, or officers, directors, employees, agents or attorneys, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person,
for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by such Releasee as a result of
such violation. 
 [Remainder of Page Intentionally Left Blank. Signature Page Follows.] 

  
 5 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the
Effective Date. 
  

					
	BORROWER:
	
	THE ACADEMY REAL ESTATE, LLC, a Delaware limited liability company
		
	By:	 	AMERICAN ADDICTION CENTERS, INC., its sole member
			
		 	By:	 	 /s/ Jerrod N. Menz

		 	Name:	 	Jerrod N. Menz
		 	Title:	 	President

  

	
	GUARANTORS:
	
	 /s/ Michael T. Cartwright

	MICHAEL T. CARTWRIGHT
	
	 /s/ Jerrod N. Menz

	JERROD N. MENZ

  

			
	AMERICAN ADDICTION CENTERS. INC., a Nevada corporation
		
	By:	 	 /s/ Jerrod N. Menz

	Name:	 	Jerrod N. Menz
	Title:	 	President

  

			
	BEHAVIORAL HEALTHCARE REALTY, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Michael T. Cartwright

	Name:	 	Michael T. Cartwright
	Title:	 	Manager

  
 6 

			
	LENDER:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Alan Prohaska

	Name:	 	Alan Prohaska
	Title:	 	VP

  
 7 

 EXHIBIT A 

POST-TRANSACTION STRUCTURE 
  

 

  
 8

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