Document:

Exhibit 10.2

 

ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT (this "Agreement"), dated as of this ___ day of __________, 20___ (the "Effective
Date"), is made and entered into by and between GLOBAL MEDICAL REIT, INC., a Maryland corporation ("Purchaser"),
and CHERRY HILLS REAL ESTATE, LLC, a  limited liability company [THIS ENTITY IS NOT REGISTERED IN MICHIGAN –
NEED TO CONFIRM NAME] ("Seller").

 

RECITALS:

 

A.            WHEREAS,
Seller owns and operates licensed medical facility located at 33545 Cherry Hill Rd, Westland, Michigan containing 15,018 square
feet of improvements, on 1.3 acres land, as set forth on Exhibit A, together with the real property, the improvements and
all appurtenances thereto (the "Facility"), which defined term shall include all of the Assets (as defined in
Recital B below) applicable to the Facility). The Facility is located at the address and has the total number of the number
of licensed beds as forth on Exhibit A.

 

B.            WHEREAS,
the parties desire to enter into this Agreement pursuant to which Purchaser will purchase, accept and assume from Seller, and
Seller will sell, convey, transfer and assign to Purchaser, the following, hereinafter collectively referred to as the "Assets":

 

(i)          Seller’s
good and marketable, valid and insurable fee simple title and all other rights, title and interest of Seller in and to the parcel(s)
of real property on which the Facility is located, such real property being more particularly described on Exhibit B, attached
hereto (the "Real Property");

 

(ii)         Seller’s
fee simple title in and to all buildings, structures, facilities, amenities, driveways, walkways, parking lots and other improvements
located on the Real Property (collectively, the "Improvements");

 

(iii)        all
right, title and interest of Seller in and to any alleys, strips or gores adjoining the Real Property, any easements, rights of
way or other interests in, on, under or to, any land, highway, street, road or right of way, open or proposed, in, under, across,
abutting or benefiting the Real Property, and any pending or future action for condemnation, eminent domain or similar proceeding,
or for any damage to the Real Property by reason of a change of grade thereof, and all other accessions, appurtenant rights, and
privileges of Seller in and to the Real Property and the Improvements;

 

(iv)        all
personal property owned by Seller located at the Facility and used in connection with the Facility (the “Personal Property);
and

 

(v)         all
licenses, permits and warranties benefiting the Facility.

 

C.           WHEREAS,
simultaneously therewith, Purchaser and Seller intend that Purchaser will Lease the Facility to The Surgical Institute of Michigan,
LLC, a Delaware limited liability company (“Tenant”)] pursuant to a lease in accordance with the terms
set forth herein (the "Facility Lease"), it being understood that the Facility Lease will be guaranteed by Surgical
Management Professionals, LLC, a South Dakota limited liability company (the “Guarantor”) pursuant to a written
Guaranty (the "Guaranty").

 

     

     

    

 

NOW,
THEREFORE, in consideration of the recitals, and of the mutual agreements, representations, warranties, conditions and covenants
herein contained, the parties hereto agree as follows:

 

ARTICLE
I.

PURCHASE AND SALE

 

1.1          Transfer
of Assets. For and in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency
of which are herein acknowledged, and subject to the terms and conditions herein provided, Seller shall convey, transfer and assign
the Assets to Purchaser.

 

1.2          Closing.

 

(a)          Unless
this Agreement shall have been terminated pursuant to an express right to terminate as herein provided, the closing hereunder
(the "Closing") shall occur on or before 2:00 p.m. CT on the date fifteen (15) days after the expiration of the
Due Diligence Period (as defined in Section 1.8(b) below) (the "Closing Date"); provided, however,
that if all of the Required Consents (as defined in Section 5.5(b) below) are not received by Purchaser on or before the Closing
Date, the Closing Date will be automatically extended on a month-to-month basis to permit Seller and Purchaser to continue pursuing
the Required Consents for which each is responsible, and the Closing will occur on the latter of (i) the date at least fifteen
(15) days after the date on which the last of the Required Consents is obtained; or (ii) the last day of the calendar month in
which the last of the Required Consents is obtained. If all Required Consents have not been received within thirty (30) days [Please
provide information on timing] after the end of the Due Diligence Period, either party may terminate this Agreement upon written
notice to the other party given prior to 6:00 p.m. CT on that date, in which case the refundable portion of the Deposit (as defined
in Section 1.4 below) will be promptly returned to Seller and neither party will have any further obligation or liability to the
other party. The Closing will be effective for accounting purposes as of 12:01:01 a.m. on the Closing Date such that the Closing
Date will be a day of income and expense to Purchaser.

 

(b)          On
the Closing Date, all documents and other materials required from Seller under Section 9.1(b) (collectively, the "Seller
Documents") and from Purchaser under Section 9.1(c) (collectively, the "Purchaser Documents") in order
to effectuate the consummation of the Closing shall be delivered to the offices of the Purchaser, or at such other date, time
and place as Purchaser may reasonably require taking into account the relative location of any lenders. Notwithstanding the foregoing,
(i) Seller may deliver all of the Seller Documents required hereunder to the Title Company (as defined in Section 4.10(b) below),
as escrow agent ("Escrow Agent") or Purchaser’s counsel on or before the Closing Date (to hold in escrow
in accordance with customary conveyancing practices subject to the consummation of the Closing) by overnight courier, and (ii)
Purchaser may deliver all of the Purchaser Documents required hereunder to Escrow Agent on or before the Closing Date (to hold
in escrow in accordance with customary conveyancing practices subject to the consummation of the Closing) by overnight courier.

 

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1.3          Purchase
Price. The aggregate purchase price (the “Purchase Price”) for the Assets shall be Four Million Seven Hundred
Fifty Thousand and No/100 Dollars ($4,750,000.00), subject to the prorations and further adjustments as provided for in this Agreement.
At the Closing, the Purchase Price shall be paid as in cash, subject to the prorations and further adjustments as provided for
in this Agreement, by wire transfer of immediately available federal funds to Escrow Agent (“Cash Proceeds”).

 

1.4          Deposit.
Within three (3) business days following the Effective Date Seller will deposit the amount of Fifteen Thousand and No/100 Dollars
($15,000.00) (the "Deposit") with the Title Company as provided herein to cover Purchaser’s out of pocket
expenses. It is understood that if Purchaser terminates this Agreement for any reason other than a default by Seller, the Deposit
will be refunded to Seller, less out of pocket expenses incurred by Purchaser (the “Deposit Balance”). At Closing,
the Deposit Balance, if any, shall be applied to the Purchase Price.

 

1.5          Payment
of Purchase Price. At Closing, Purchaser shall pay the Purchase Price, adjusted for any prorations, credits and additions
for the benefit of Purchaser or Seller as specified in this Agreement, as set forth in Section 1.3 hereof.

 

1.6          No
Assumed Liabilities. At Closing, Purchaser shall NOT assume any liabilities or obligations of Seller whatsoever, fixed or
contingent, and prior to, on and after the Closing Date, Seller shall retain and discharge in the ordinary course all liabilities
and obligations of Seller. Purchaser shall not assume any contracts, equipment leases or leases, and Seller shall remain fully
liable for all obligations thereon. There shall be no adjustment between Purchaser and Seller of taxes, assessments, water charges,
utilities, receivables or rents, if any, premiums on existing insurance policies, if any, or any other items relating to the Assets,
it being understood by the parties that Tenant, as Tenant under the Facility Lease, shall be obligated to pay the same under the
terms thereof from and after the Closing Date.

 

1.7          Due
Diligence Period.

 

(a)          Seller
and Purchaser hereby acknowledge that, as of the Effective Date, Purchaser has not yet had an opportunity to conduct due diligence
and fully review and evaluate all aspects of this transaction and the condition and suitability of the Assets. In order to enable
Purchaser to commence its due diligence review in a timely and efficient manner, Seller agrees to deliver to Purchaser all items
identified on Purchaser’s preliminary due diligence checklist attached hereto as Exhibit C (the "Preliminary
Due Diligence Checklist") on or before the date five (5) days after the Effective Date (the "Diligence Delivery
Date"). Purchaser may supplement the Preliminary Due Diligence Checklist as Purchaser deems appropriate and Seller shall
provide the supplemental items to Purchaser within five (5) days after written request by Purchaser. To the extent Seller has
any of the items on the Preliminary Due Diligence Checklist in electronic format, Seller shall send true, correct and complete
copies of those items to Purchaser via the internet. To the extent Seller has items on the Preliminary Due Diligence Checklist
in hardcopy, but not in electronic format, Seller shall make true, complete and correct copies of those items and deliver them
to Purchaser via overnight courier. Seller shall organize all materials in accordance with the Preliminary Due Diligence Checklist
and shall identify each item with reference to the number assigned to it on the Preliminary Due Diligence Checklist.

 

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(b)          For
the period (as such period may be extended pursuant to Section 4.10(b) or (c) below, the "Due Diligence Period")
commencing on the Effective Date and continuing until 6:00 p.m. CT on the forty-fifth (45th) days following the Effective
Date, Purchaser shall have the right to terminate this Agreement by written notice to Seller in the event Purchaser, in Purchaser’s
sole discretion, is not satisfied with the Assets for any reason, which reason need not be specified in such notice, provided
that such notice is delivered (in accordance with the provisions of this Agreement) to Seller on or before 6:00 p.m. CT on the
last day of the Due Diligence Period. If such notice of termination is so delivered on or before 6:00 p.m. CT on the last day
of the Due Diligence Period, then this Agreement shall terminate and the parties shall thereafter be released from all further
duties and obligations under this Agreement. If this Agreement is not terminated as set forth in this Section 1.7 or as otherwise
provided herein, then this Agreement shall remain in full force and effect.

 

ARTICLE
II.

REPRESENTATIONS AND WARRANTIES OF SELLER

 

As
an inducement to Purchaser to enter into this Agreement and to consummate the transactions contemplated herein, Seller represents
and warrants the following, each of which warranties and representations is material to and is relied upon by Purchaser:

 

2.1          Organization
and Qualification. Seller is a limited liability company duly organized and validly existing under the laws of the State of
________ with full power and authority to own assets and to carry on its business as it is now being conducted and to own or lease
and operate the Assets it owns or leases as and in the place now owned, leased or operated, and as will be leased pursuant to
the Facility Lease, respectively.

 

2.2          Authority;
Binding Effect.

 

(a)          Seller,
Tenant and Guarantor have, and at Closing will have, the full and unrestricted right, corporate power and authority to execute,
deliver and perform this Agreement and to consummate the transactions and perform all obligations contemplated hereby and in all
agreements, instruments and documents being or to be executed and delivered by Seller in connection with such transactions, including,
without limitation, the Seller Documents, the Facility Lease and all agreements, instruments and documents being or to be executed
and delivered by Seller, Tenant and Guarantor in connection with the Facility Lease, including, without limitation, the Guaranty
(collectively, "Related Documents").

 

(b)          This
Agreement and each Related Document, upon due execution and delivery by Seller, Tenant and Guarantor, will constitute the legal,
valid, and binding obligation of Seller, Tenant and Guarantor enforceable in accordance with its respective terms.

 

(c)          Seller,
Tenant and Guarantor have obtained all required corporate approval required for the execution and consummation of this Agreement,
the Related Documents and all transactions contemplated hereby and thereby.

 

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2.3          Licenses.
The Facility is currently licensed to operate as a [DESCRIBE] (the “Permitted Use”). Exhibit E sets
forth all permits, licenses, Government Program (as defined below) provider agreements and other authorizations issued and required
by Governmental Authorities in connection with the ownership, maintenance and operation of the Facility, including, without limitation,
such licenses required for the Permitted Use (collectively, the "Licenses"). The Licenses are in good standing
and Seller has not received written notice that Seller is in violation of any restriction or other rules, regulations, statutes,
ordinances or requirements or any judgments, decrees, writs, injunctions or orders of any Governmental Authority in effect as
of the date hereof, or as enacted or amended from time to time after the Effective Date (collectively, "Applicable Laws")
in connection with the Licenses or the Facility or otherwise affecting possession, operation and use thereof. Seller is the holder
of all the Licenses and there is no other person or entity that operates, manages or leases the Facility (other than pursuant
to Tenant Leases (as defined herein).

 

2.4          Governmental
Authorities. Except as set forth on Exhibit F attached hereto, Seller is not required to submit any notice, report
or other filing with any federal, state, municipal, foreign or other governmental or regulatory authority (individually, a "Governmental
Authority" and collectively, "Governmental Authorities") in connection with Seller’s execution
or delivery of this Agreement or any of the Related Documents or the consummation of the transactions contemplated hereby and
no consent, approval or authorization of any Governmental Authority is required to be obtained by Seller in connection with the
execution, delivery and performance of this Agreement.

 

2.5          Taxes.
All real property taxes and assessments, and all personal property taxes and assessments, in connection with the Assets allocable
to the period prior to Closing have been paid or, by the time of Closing, will be paid by Seller. In addition: (i) all income,
sales and franchise taxes due and payable by Seller during the period of Seller’s (or any affiliate of Seller’s) ownership
of the Assets, if any, and all interest and penalties thereon, if any, have been paid in full; (ii) all tax returns required
to be filed by Seller, if any (including, without limitation, all sales, franchise and payroll tax returns and reports), have
been properly and timely filed, and correctly reflect the tax position of Seller, and all taxes respectively due under such tax
returns have been paid thereby or will be paid in the ordinary course of Seller’s business and in any event on or before
the Closing; (iii) Seller is not subject to a claim for deficiency or other action in connection with any taxes and is not paying
any taxes for any prior period under any installment agreement, compromise or settlement agreement or any other arrangement with
any Governmental Authority; (iv) no tax returns of Seller have been or are being examined by the Internal Revenue Service or any
state or local Governmental Authority; and (v) all tax returns filed by Seller after the Effective Date, covering periods
prior to and including the Closing Date, will be properly and timely filed (giving consideration for allowable extensions) and
all taxes respectively due under such tax returns will be timely paid.

 

2.6          No
Defaults. The execution, delivery and performance of this Agreement and any of the Related Documents by Seller do not and
will not:

 

(a)          Conflict
with or result in any breach of the provisions of, or constitute a default under the articles of incorporation, bylaws, articles
of organization, operating agreement or other governing organizational documents, as the case may be, of Seller;

 

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(b)          Violate
any restriction to which Seller is subject or, with or without the giving of notice, the passage of time, or both, violate (or
give rise to any right of termination, cancellation or acceleration under) any mortgage, deed of trust, license, lease, indenture
or other material agreement or instrument, whether oral or written, to which Seller is a party, or by which it or the Assets are
bound, which will not be fully satisfied, assigned or terminated on or prior to Closing as a result of the transactions contemplated
in this Agreement, or result in the termination of any such instrument or termination of any provisions in such instruments, or
result in the creation or imposition of any lien, charge or encumbrance upon the Assets;

 

(c)          Create
any liens or other encumbrances on the Assets in favor of third parties;

 

(d)          Constitute
a violation of any Applicable Law of any Governmental Authority; or

 

(e)          Result
in the breach or violation of any of the warranties and representations herein set forth by Seller.

 

2.7          Title
to Property and Related Matters.

 

(a)          There
are no violations of any covenants or restrictions encumbering the Assets, and there are no violations of any Applicable Laws
relating to the Licenses or the operation of the Facility for the Permitted Use or any other Applicable Laws of any Governmental
Authorities applicable to the Assets or the operations thereof. Seller has no knowledge of any agreements, documents or instruments
which are not recorded among the land records but which affect the title to the Facility.

 

(b)          Seller
is the holder of good and marketable, insurable and valid fee simple title to the Facility free and clear of all Monetary Encumbrances
(as defined in Section 4.10(b)) other than such Monetary Encumbrances as Seller shall pay and discharge in full prior to or on
or at Closing. Seller has continuously operated the Facility for a period of not less than five (5) years and using no names other
than (i) the name of Seller and (ii) the name of the Facility set forth on Exhibit A.

 

(c)          The
Facility is supplied with such utilities as are necessary for the operation of the Facility as currently operated and for its
intended purpose, and Seller has no knowledge of any future plans by any utility provider to curtail or eliminate any utilities
currently serving the Assets. All utility bills and deposits required by any utility provider have been paid by Seller.

 

(d)          The
Facility abuts on and has direct vehicular access to a public road, or has access to a public road via a permanent irrevocable
and insurable easement benefiting the Real Property upon which the Facility is located, and Seller has no knowledge of, and has
received no notice that alleges any breach or default under any instrument creating any such easement or attempting to terminate
or revoke such easement.

 

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(e)          There
are no pending rezoning or other pending land use actions affecting the Assets or any properties in the immediate vicinity of
the Assets. Seller has not received written notice of and has no knowledge of any threatened or contemplated rezoning or other
land use actions affecting or which will affect the Assets, including, without limitation, on properties in the immediate vicinity
of the Assets. The current use of the Facility is lawfully permitted either as a currently conforming use or as a fully legally
"grandfathered use", and there is no known violation of any Applicable Laws relating to the zoning, land use, building
codes or other similar requirements of Governmental Authorities.

 

(f)          At
the Closing, Seller shall not be indebted to any contractor, laborer, mechanic, materialman, architect or engineer for work, labor
or services performed or rendered, or for materials supplied or furnished, in connection with the Assets for which any such person
could lawfully claim a lien against the Assets.

 

(g)          There
are no condemnation or eminent domain proceedings pending, or, to the knowledge of Seller, threatened or contemplated against
the Assets or any part thereof, or access thereto, and Seller has not received notice, oral or written, of the desire of any public
authority or other entity to take or use the Assets or any part thereof. Between the Effective Date and the Closing, Seller will
give Purchaser prompt written notice of any actual or any threatened or contemplated condemnation of any part of the Assets of
which Seller receives written notice or obtains knowledge.

 

(h)          There
are no parties other than Seller in possession of the Assets, or any portion thereof, other than tenants under the Tenant Leases
who are in possession of space to which they are entitled.

 

(i)          There
are no outstanding options or rights of first refusal to purchase the Assets or any portion thereof or interest therein.

 

(j)          The
Assets constitute all of the assets necessary and sufficient to conduct the operation of the Facility in the manner that such
operation has been conducted by Seller and as required by Applicable Laws.

 

2.8          Hazardous
Substances.

 

(a)          For
purposes of this Agreement, "Environmental Laws" means the Resource Conservation and Recovery Act (RCRA), 42
U.S.C. Section 6901 et seq., the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA),
42 U.S.C. Sections 9601 et seq., the Clean Water Act, 33 U.S.C. Section 1251 et seq., the Toxic Substances
Control Act (15 U.S.C. §2601 et. seq.), the Clean Air Act (42 U.S.C. §7401 et. seq.), the
Safe Water Drinking Act (42 U.S.C. §300(f) et. seq.), the Occupational Safety and Health Act, and all other
applicable state, county, municipal, administrative or other environmental, hazardous waste or substance, health and safety
laws, ordinances, rules, regulations, judgments, orders and requirements of any Governmental Authority relating or pertaining
to (A) any aspect of the environment, (B) the preservation or reclamation of natural resources, (C) the management, release and
threatened release of Hazardous Substances (as hereinafter defined), (D) response actions and corrective actions regarding Hazardous
Substances, (E) the ownership, operation or maintenance of personal and real property that manages or releases Hazardous Substances
or at which Hazardous Substances are managed, (F) common law torts, including so-called "toxic torts", and (G) environmental
or ecological conditions on, under or about the Assets, all as in effect as of the Effective Date and on the Closing Date. For
purposes of this Agreement, "Hazardous Substance" shall mean any and all substances, wastes, materials,
pollutants, contaminants, compounds, chemicals or elements which are defined or classified as a "hazardous substance",
"hazardous material", "toxic substance", "hazardous waste", "pollutant", "contaminant"
or words of similar import under any Environmental Law, including, without limitation, all dibenzodioxins and dibenzofurans, polychlorinated
biphenyls (PCBs), petroleum hydrocarbon, including crude oil or any derivative thereof, any radioactive material, raw materials
used or stored in the Facility and building components including, asbestos-containing materials in any form, radon gas and mold
of a type or in amounts that may present a health hazard.

 

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(b)          The
Assets do not contain any Hazardous Substance, except for Hazardous Substances typically used in, and in quantities necessary
for the day-to-day operation of, the Facility and which are commonly used in other similar facilities, such as cleaning fluids,
insecticides and medicines (the "Common Products"), which Common Products have been used, transported, stored
and disposed of by Seller in compliance with all applicable Environmental Laws;

 

(c)          There
is no pending or threatened litigation or proceeding before any Governmental Authority in which any person or entity alleges the
presence, release or threat of release of any Hazardous Substance or violation of Environmental Laws at the Facility;

 

(d)          Seller
has not received any notice of, and has no knowledge that, any Governmental Authority or employee or agent thereof has determined,
or threatens to determine, or is investigating, that there is a presence, release or threat of release or placement on, in or
from the Assets, or the generation, transportation, storage, treatment, or disposal at the Assets, of any Hazardous Substance.
Seller shall notify Purchaser promptly of its receipt of any such notice or knowledge after the Effective Date;

 

(e)          (i) Seller
has owned and operated the Assets in compliance with all applicable Environmental Laws, has obtained all necessary permits
under the Environmental Laws for Seller’s operation of the Assets, and has not used any of the Assets for the generation,
storage, manufacture, use, transportation, disposal or treatment of Hazardous Substances, and (ii) the Assets are currently in
compliance with all applicable Environmental Laws;

 

(f)          There
has been no discharge of any Hazardous Substance on or from any of the Assets during the time of Seller’s ownership or occupancy
thereof; and

 

(g)          Seller
has, or will, deliver to Purchaser copies of all reports or tests in Seller’s possession with respect to (i) the compliance
of the Assets with Environmental Laws and (ii) the presence of Hazardous Substances on, in or from the Facility or the Real Property.

 

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2.9        Leases.
Exhibit D attached hereto contains a true and correct list of all leases of space in the Facility by Seller to third party
service providers, such as physical therapists, banks, clinics or beauty shop operators (collectively, the "Tenant Leases").
Seller has provided or will provide to Purchaser true and complete copies of all Tenant Leases prior to the Diligence Delivery
Date. Except as disclosed on Exhibit D, each Tenant Lease is in full force and effect; all rents due on or before the Effective
Date under each Tenant Lease have been timely paid and there has not been and there is no ongoing issue or dispute as to past
rental payments; in each case, neither Seller, nor, to the knowledge of Seller, any other party to any such Tenant Lease is in
default in any respect thereunder; and no waiver, indulgence or postponement of Seller’s obligations as the lessor under
the Tenant Leases, and Seller has no knowledge of and has not received written notice that there exists any occurrence, event,
condition or act which, upon the giving of notice or the lapse of time or both, would become a default by Seller (or, to the knowledge
of Seller, any other party to such lease) under any such Tenant Lease.]

 

2.10      Patriot
Act. Seller is in compliance with the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the
"Order"), and other similar requirements contained in the rules and regulations of the Office of Foreign Assets
Control, Department of the Treasury ("OFAC") and in any enabling legislation or other Executive Orders or regulations
in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively called the "Orders").
Neither Seller nor any of its affiliates (A) is listed on the Specially Designated Nationals and Blocked Person List maintained
by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of
the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the "Lists"),
(B) is a Person (as defined in the Order) who has been determined by competent authority to be subject to the prohibitions contained
in the Orders; or (C) is owned or controlled by (including, without limitation, by virtue of such Person being a director or owning
voting shares or interests), or acts for or on behalf of, any person on the Lists or any other Person who had been determined
by competent authority to be subject to the prohibitions contained in the Orders.

 

2.11      Survey
Reports, Etc.; Compliance with Law. Seller has delivered or, pursuant to Section 1.8, will deliver to Purchaser true and complete
copies of all survey reports, waivers of deficiencies, plans of correction, and any other investigation notices, warnings, correspondence
or reports issued with respect to the Facility (collectively, "Licensing Surveys"), and Seller shall also promptly
deliver to Purchaser any Licensing Surveys received, filed, arising or involving the Facility between the Effective Date and the
Closing Date. There are no material deficiencies or violations noted in any Licensing Surveys and Seller has remedied, discharged
and complied with all applicable plans of correction, such that there are no current violations or deficiencies with respect to
any of the Licenses. Seller is currently conducting, and has at all times conducted, its operation of the Facility in compliance
with all Applicable Laws.

 

2.12      Capital
Expenditures. Except for routine expenditures for repairs and replacements in connection with the ongoing maintenance and
upkeep of the Facility, which Seller covenants and agrees to undertake and complete in the ordinary course consistent with past
practices pursuant to Section 4.1 below, Seller does not have any outstanding contracts for capital expenditures relating to the
Facility, nor does Seller have any agreement, obligations or commitments for capital expenditures relating to the Facility, including,
without limitation, additions to property, plant, equipment or intangible capital assets. Seller has not deferred or delayed implementing
any capital expenditures at the Facility and the Facility has been constructed to an institutional (as opposed to residential)
grade, including, without limitation, fire suppression systems and construction standards related to fire suppression.

 

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2.13        Absence
of Notices. Seller has not received any written notice, and has no knowledge, that (a) any customer or supplier of Seller
intends to discontinue, substantially alter prices or terms to, or significantly diminish its relationship with the Facility,
either as a result of the transaction contemplated hereby or otherwise or (b) any federal, state, county, municipal or other Governmental
Authority is alleging any fire, health, safety, building, pollution, environmental, zoning or other violation of Applicable Law,
including, without limitation, applicable health care licensure laws or violations under the Licenses, with respect to the Facility
or any part thereof.

 

2.14        Third
Party Payor Reimbursement. All billing practices of Seller with respect to the Facility to all third party payors, including
Medicare, Medicaid, CHAMPUS, TRICARE and other federal, state or local governmental reimbursement programs, or successor programs
to any of the foregoing (collectively referred to herein as the “Government Programs”) and private insurance
companies, have been in compliance with all Applicable Laws and policies of such third party payors and Government Programs in
all respects. Seller has received no written notice that Seller has billed or received any payment or reimbursement in excess
of amounts permitted by Applicable Law.

 

2.15        Financial
Statements. Seller has delivered to Purchaser copies of the financial statements listed in the Preliminary Due Diligence Checklist
certified by the chief financial officer of Seller (collectively, the "Financial Statements") as follows: (a)
audited income statements of Seller for the fiscal years ended 2012, 2013 and 2014; (b) income statements, balance sheets, changes
in stockholders equity and cash flow of Seller (the "Most Recent Financial Statements") as of and for the six
(6) month period ended, 2015; and (c) a schedule of capital improvements to the Facility that were completed in the
fiscal years ended 2012, 2013, and 2014. The Financial Statements (including the notes thereto) have been prepared in accordance
with generally accepted accounting principles ("GAAP") on a consistent basis throughout the periods covered thereby
and present fairly the financial condition of the Facility as of such dates and the results of operation of the Facility for such
periods.

 

2.16        No
Litigation. Except as set forth on Exhibit G attached hereto, there are no actions, suits, claims, governmental investigations
or other legal or administrative proceedings, or any orders, decrees or judgments in progress, pending or in effect, or, to the
knowledge of Seller, threatened against or relating to Seller, the Facility, Seller’s operation of the Facility, any of
the Assets or against or relating to the transactions contemplated by this Agreement, and there are none pending in state courts,
or in any federal courts, or, to the knowledge of Seller, pending in other jurisdictions or threatened in writing, at law or in
equity, by or before any federal, state or municipal court or other Governmental Authority. If the matters set forth on Exhibit
G if any, are decided adversely, it will not materially or adversely affect the Assets, Seller or Seller’s operation
of the Facility.

 

2.17        Absence
of Certain Changes or Events. From [DATE OF LAST INSPECTION BY PURCHASER] through the Effective Date, neither the Facility
nor Seller has:

 

(a)          Suffered
any Material Adverse Change;

 

    	 	10	 

     

    

 

(b)          Sold,
transferred or otherwise disposed of, or agreed to sell, transfer or otherwise dispose of, any assets related to or connected
with the Facility having a fair market value at the time of sale, transfer or disposition of $50,000.00 or more in the aggregate,
other than with respect to sales of Inventory in the ordinary course of business, or cancelled, or agreed to cancel, any debts
or claims relating primarily to the Facility in the amount of $50,000.00 or more in the aggregate; or

 

(c)          Made
any change in any method of accounting or accounting practice relating to the Facility.

 

2.18        Condition
of Assets. All of the Assets are in Seller’s possession or control and are located at or on the Facility and all of
the Assets are in good repair and working order.

 

2.19        Employee
and Labor Relations. Seller is in compliance with all federal, state or other Applicable Laws respecting employment and employment
practices at the Facility (collectively, "Employment Laws"). Seller shall remain responsible for maintaining
all employee benefit plans in compliance with Applicable Laws and Purchaser shall have no obligation with respect to any of Seller’s
employee benefit plans at any time. Seller has no unfunded or trailing obligation to fund any employee benefit plans.

 

2.20        Insurance.
Attached as Exhibit H is a list of insurance policies carried and insurance coverages maintained by Seller with respect
to the Facility, and upon request by Purchaser, Seller shall provide copies of any policies to Purchaser. Seller’s insurance
policies and coverages are in full force and effect and include coverages, policy limits, deductibles and other terms that are
customary for the Permitted Use at similar facilities.

 

2.21        Truth
of Warranties, Representations, and Statements. All of the statements, representations, and warranties made by Seller in this
Agreement and the statements and information set forth in the attached Exhibits are true and accurate in every material respect.

 

2.22        Materials
Provided. All materials provided to Purchaser by Seller either prior to the Effective Date or during the term hereof, including,
without limitation, all items on the Preliminary Due Diligence Checklist, are true, accurate and complete in all material respects.

 

Notwithstanding
anything else to the contrary herein, any reference in this Agreement to "knowledge" of Seller shall be deemed to mean
the actual knowledge of _________________ and _________________ after due inquiry. [Provide appropriate names and titles for
corporate and on-site officers/personnel at the Facility.]

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

As
an inducement to Seller to enter into this Agreement and to consummate the transactions contemplated herein, Purchaser represents
and warrants the following, each of which warranties and representations is material to and is relied upon by Seller:

 

    	 	11	 

     

    

 

3.1          Corporate
Organization; Etc. Purchaser is a corporation duly organized and validly existing under the laws of the State of Maryland
with full power and authority to own assets and to carry on its business as it is now being conducted.

 

3.2          Authorization,
Binding Effect. Purchaser has, and at Closing will have, the full and unrestricted right, power and authority to execute,
deliver and perform this Agreement and to consummate the transactions and perform all obligations contemplated hereby and in all
agreements, instruments and documents being or to be executed and delivered by Purchaser in connection with such transactions.
The consummation of the transactions contemplated herein have been duly authorized and approved by all necessary corporate action
of Purchaser. This Agreement and each such other agreement, instrument and document, upon due execution and delivery by Purchaser,
will constitute the legal, valid, and binding obligation of Purchaser, enforceable in accordance with its terms.

 

3.3          No
Violation. Purchaser is not subject to or obligated under any certificate of incorporation, bylaw, law, or rule
or regulation of any Governmental Authority, or any agreement or instrument, or any license, franchise or permit, or subject to
any order, writ, injunction or decree which would be in any material respect breached or violated by the execution, delivery or
performance of this Agreement.

 

3.4          Truth
of Warranties, Representations, and Statements. All of the statements, representations, and warranties made by Purchaser in
this Agreement are true and accurate in every material respect.

 

ARTICLE
IV.

COVENANTS OF SELLER

 

Seller
covenants and agrees during the period after the Effective Date and through and including the Closing Date as follows:

 

4.1          Regular
Course of Business. Seller shall: (a) operate the Facility in a manner consistent with all Applicable Laws, Seller’s
past practices and industry standards for operation of a [DESCRIBE USE]; (b) maintain the Assets in good order and repair and
otherwise in sufficient repair, order and condition to satisfy the representations and warranties as to the condition and quantity
of the Assets set forth in Article II; (c) comply with all Applicable Laws with respect to the Assets and the operation thereof,
including, without limitation, all required regulatory standards of any Governmental Authorities with regulatory jurisdiction
over the Facility and compliance with all Governmental Programs; (d) maintain and comply with, all Tenant Leases, each without
change except as expressly provided herein; (e) not make any changes or modifications in any Tenant Leases unless such changes
or modifications are in accordance with sound business judgment and do not adversely affect the operation of the Facility; (f)
not enter into any agreements or leases that would have had to be disclosed on any exhibit hereto had such agreements or leases
been entered into prior to the Effective Date without prior written notice to Purchaser and Purchaser's approval thereof, which
approval shall not be unreasonably withheld; (g) keep in full force and effect present insurance policies through the Closing
Date; (h) maintain and comply with, all Tenant Leases, each without change except as expressly provided herein; (i) not make any
changes or modifications in any Tenant Leases unless such changes or modifications are in accordance with sound business judgment
and do not adversely affect the operation of the Facility; and (j) maintain in good standing all Licenses and use commercially
reasonable efforts to maintain all goodwill of tenants under the Tenant Leases.

 

    	 	12	 

     

    

 

4.2       Full
Access and Disclosure. The term "Facility Management" means the following personnel: the principals of Seller,
any regional vice presidents (or other personnel with managerial oversight of the Facility), the director or executive director,
as applicable, of the Facility, the head nurse at the Facility and the head maintenance person at the Facility. On the Effective
Date, Seller shall notify the Facility Management of the pending sale/leaseback of the Facility to Purchaser and instruct the
Facility Management to fully cooperate with Purchaser and to treat the pending sale with utmost confidentiality. Thereafter, Seller
shall afford to Purchaser and its counsel, accountants, environmental consultants, engineers, appraisers, lenders and other authorized
representatives (collectively, "Purchaser’s Representatives") access to the Facility during business hours,
including, but not limited to, the roof, all FF&E, the heating and cooling systems, and any and all financial data and records,
operating data and other information requested, including the Most Recent Financial Statements, audits, inspection reports, plans
of correction with respect to Licensing Surveys, payroll information, Government Program reports, employment agreements, personnel
policies, and all contracts, agreements, correspondence files and other documents relating to the Facility so that Purchaser may
have a full opportunity to make such investigations of the Assets and the Facility as Purchaser shall desire to make. Seller shall
be entitled to have a representative present during Purchaser’s scheduled visits. Prior to expiration of the Due Diligence
Period, Purchaser’s access to personnel shall be limited to meeting with the Facility Management, unless otherwise approved
by Seller, which approval may not be unreasonably withheld. At the request of either Purchaser or Seller, within five (5) Business
Days after the expiration of the Due Diligence Period (and assuming this Agreement is not terminated), Seller and Purchaser shall
hold joint meetings at the Facility with the facility-based Employees to announce that the Facility will be sold to Purchaser
and leased to Tenant.  At any time after those meetings, Purchaser will be entitled to meet with and interview any and
all Employees. Seller shall furnish such additional financial and operating data and other information as Purchaser and Purchaser’s
Representatives shall from time to time request, and Seller shall supplement or amend any information, written or otherwise, previously
delivered or otherwise disclosed to Purchaser with respect to any matter hereafter arising which, if existing or occurring at
the Effective Date, would have been required to be set forth or disclosed.

 

4.3       Borrowing.
Seller shall not create or permit to become effective any mortgage, pledge, lien, encumbrance or charge of any kind upon all or
any portion of the Assets.

 

4.4       Consents.
Seller shall obtain, at Seller’s cost and expense, on or prior to Closing, all consents necessary for Seller, Tenant and
Guarantor to fulfill Seller’s, Tenant’s and Guarantor’s obligations to consummate the transactions contemplated
hereby and pursuant to the Facility Lease and the Guaranty, including, without limitation, any required consents of any Governmental
Authority.

 

4.5       Compliance
with Laws. Seller shall comply with all Applicable Laws in conjunction with the execution, delivery and performance of this
Agreement, the transactions contemplated hereby and the ownership, operation and maintenance of the Facility prior to Closing.

 

    	 	13	 

     

    

 

4.6         Taxes.
Seller shall file all federal, state and local returns, and, to the extent applicable, estimates and reports and pay all amounts
then due, for all taxes for all periods through and including the Closing Date to the extent due and payable at any time prior
to the Closing Date hereunder and otherwise to the extent necessary to transfer the Facility to Purchaser in accordance with the
terms of this Agreement.

 

4.7         No
Disposition of Assets. Seller shall not sell, lease or otherwise dispose of or distribute any of the Assets or properties
related thereto or necessary for operation of the Facility and, to the extent depleted or replaced in the ordinary course, Seller
shall restock and replenish any portion of the Assets consumed or used between the Effective Date and the Closing Date with Assets
of comparable quality.

 

4.8         Further
Documentation. Seller agrees that following the Closing, upon request by Purchaser, Seller will do, execute, acknowledge,
and deliver, or cause to be done, executed, acknowledged, and delivered, all such further acts, deeds, assignments, transfers,
conveyances and assurances as may be reasonably required, in order to more fully assign, grant, transfer, convey, assure and confirm
to Purchaser, or to its successors and assigns, or for aiding and assisting in collecting and reducing to possession, any or all
of the Assets to be sold to Purchaser pursuant to this Agreement. This Section shall survive Closing.

 

4.9         Confidentiality.
Seller will use its commercially reasonable efforts to keep confidential all information relating to the terms of this Agreement
and all information relating to Purchaser (other than information that is a matter of public knowledge or that has heretofore
been or is hereafter published in any publication for public distribution or filed as public information with any Governmental
Authority) and such information shall not at any time be used for the advantage of Seller or its representatives or disclosed
to third parties (including Facility-based Employees) by Seller or its representatives, other than to the extent necessary to
consummate the transactions contemplated hereby or as required by Applicable Law.

 

4.10       Title
Insurance and Survey; Environmental Assessments.

 

(a)          Existing
Title Documents. As part of its delivery of the items on the Preliminary Due Diligence Checklist, Seller will provide to Purchaser
a copy of Seller’s currently effective title insurance policy and plats and surveys in its possession that relate to the
Real Property.

 

    	 	14	 

     

    

 

(b)          Title
Commitment and Survey. Purchaser, at Purchaser’s option, shall use commercially reasonable efforts to obtain the following
prior to the expiration of the Due Diligence Period: (i) an updated real property survey for the Facility (the "Survey"),
and (ii)  a title commitment for the Facility (the "Title Commitment"), issued by a national title company
selected by Purchaser (the "Title Company"), which Title Commitment shall contain a commitment by the Title Company
to issue to Purchaser a title insurance policy on an extended coverage ALTA Owner’s form, in form and substance reasonably
acceptable to Purchaser (the "Title Policy") insuring the valid fee simple title to the Facility. In the event
that Purchaser is unable to obtain the Survey and Title Commitment prior to the expiration of this Due Diligence Period, the Due
Diligence Period shall be automatically extended until the date that is five (5) Business days after Purchaser receives both the
Survey and Title Commitment. Seller will cause all standard exceptions to be deleted from the Title Policy at the Closing, other
than exceptions for (i) such itemized matters shown on the Survey to which Purchaser does not object pursuant to the provisions
hereof and (ii) taxes for the year in which the Closing occurs which are not yet due and payable, and Seller will execute and
deliver or otherwise obtain such documents and instruments as the Title Company shall require, including, without limitation,
Seller’s affidavits, gap indemnities and the like. Purchaser shall have until the expiration of the Due Diligence Period
to give written notice to Seller accepting or objecting to the Title Commitment and Survey, with any such notice of objection
specifying the exceptions or other matters to which Purchaser objects. The failure of Purchaser to object to any matter reflected
in the Title Commitment or Survey prior to the expiration of the Due Diligence Period shall cause such matter to become a Permitted
Encumbrance; provided, however, Seller shall be unconditionally obligated to pay any outstanding indebtedness evidenced
by, and cause the release of any lien, mortgage, deed of trust, deed to secure debt, security agreement, judgment, tax lien or
other encumbrance affecting the Assets and capable of being released through or as a result of the payment of money (collectively,
"Monetary Encumbrances") irrespective of whether Purchaser objects to same unless and only to the extent that
such obligation is waived in writing by Purchaser. Notwithstanding the foregoing, Purchaser shall not have the right to object
to any matters created or consented to in separate written consent by Purchaser, all of which shall be deemed to be "Permitted
Encumbrances" hereunder. If Purchaser objects to any encumbrance or other matter reflected in the Title Commitment or
Survey, Seller shall have ten (10) Business Days from the date of the notice of such objection within which to cure the same (which
cure may be effected by payment and discharge of the objectionable item or by causing the Title Company to remove the same as
an exception or affirmatively insure over such item provided such affirmative insurance shall be reasonably satisfactory to Purchaser
and any lender of Purchaser and sufficient, in Purchaser’s reasonable judgment, to adequately address Purchaser’s
and any lender’s concerns with respect to such matter) and in the event Seller shall fail or refuse to do so within said
ten (10) Business Day period, Purchaser shall have five (5) Business Days thereafter in which to advise Seller in writing of Purchaser’s
election (x) to make such payments as are necessary to effect releases of such claims Seller is not prepared to cure and to proceed
to Closing or (y) to terminate this Agreement by notice to Seller, in which case the Deposit Balance shall be refunded to Seller,
and neither party shall have any further rights, duties or obligations hereunder or (z) to extend the Closing Date for a period
not to exceed thirty (30) days to enable Purchaser or Seller to so cure; provided, however, (i) Purchaser shall have the right,
but shall not be obligated, to cure such matters, (ii) if neither party cures such matters in said thirty (30) day period, Purchaser
shall again have the right to terminate this Agreement, in which case the Deposit Balance shall be refunded to Seller, and neither
party shall have any further rights, duties or obligations hereunder and (iii) any such extension shall not limit or affect
Seller’s absolute obligation hereunder to cure all Monetary Encumbrances. In the event that any update to the Title Commitment
prior to or on the Closing Date reveals any new matter not previously shown or disclosed on the prior Title Commitment, then Purchaser
will have the same rights of objection, termination and extension of the Closing Date, and Seller will have the same obligations
of cure, as set forth above. In the event Seller undertakes or commits to cure any item to which Purchaser objects and does not
cure the same on or before Closing, completion of such cure to Purchaser’s satisfaction shall be a condition to Purchaser’s
obligation to close the transaction contemplated herein.

 

    	 	15	 

     

    

 

(c)          Environmental
Reports. Seller will provide copies of any previously prepared Phase I environmental assessments or other environmental
assessments in Seller’s possession conducted for the Facility pursuant to the Preliminary Due Diligence Checklist and Seller
will permit Purchaser and its agents to conduct an environmental assessment for the Facility (the "Phase I").
Purchaser will have until the expiration of the Due Diligence Period to approve or disapprove the Phase I in writing delivered
to Seller. If the Phase I recommends that a Phase II Environmental Assessment (a "Phase II") be ordered for the
Facility, then Purchaser will use commercially reasonable efforts to obtain such Phase II prior to the expiration of the Due Diligence
Period. If the Phase II is not completed prior to the expiration of the Due Diligence Period, the Due Diligence Period shall automatically
be extended until the date that is five (5) Business Days after the date that Purchaser receives the Phase II. Should Purchaser
disapprove of any matter set forth in the Phase I or Phase II, Purchaser shall notify Seller in writing of such disapproval at
or prior to the expiration of the Due Diligence Period (as such period may be extended as contemplated above) (the "Environmental
Notice"). The failure of Purchaser to deliver an Environmental Notice to Seller on or prior to the expiration of the
Due Diligence Period shall be deemed to be a waiver by Purchaser of any right to disapprove any matter specifically set forth
in the Phase I or Phase II, respectively. If Purchaser delivers an Environmental Notice to Seller prior to the expiration of the
Due Diligence Period, Seller shall have ten (10) Business Days from the date of Seller’s receipt of such Environmental Notice
in which to advise Purchaser whether or not Seller will cure the same prior to Closing, and if Seller fails or refuses to do so
within said ten (10) Business Day period, Purchaser shall have five (5) Business Days thereafter in which to advise
Seller in writing of Purchaser’s election (x) to waive the matters to which Purchaser objected and to proceed to Closing
or (y) to terminate this Agreement by notice to Seller, in which case the Deposit Balance shall be refunded to Seller, and neither
party shall have any further rights, duties or obligations hereunder or (z) to extend the Closing Date for a period not to exceed
thirty (30) days to enable Purchaser or Seller to so cure; provided, however, (i) Purchaser shall have the right, but shall
not be obligated, to cure such matters and (ii) if neither party cures such matters in said thirty (30) day period, Purchaser
shall again have the right to terminate this Agreement, in which case the Deposit Balance shall be refunded to Seller, and neither
party shall have any further rights, duties or obligations hereunder.

 

(d)          No
Solicitation. After the Effective Date and before the Closing Date, Seller shall not directly or indirectly, through any officer,
director, employee, agent or otherwise, solicit, initiate or encourage submission of proposals or offers from any person relating
to any acquisition of all or any portion of the Assets, or any assets of or equity interest in Seller or any business combination
involving Seller, or furnish to any other person any information with respect to, or otherwise cooperate in any way with, or assist
or participate in, facilitate or encourage, any effort or attempt by any other person to do or seek any of the foregoing.

 

(e)          Surveys;
Relicensing Surveys and Cooperation. Seller shall provide to Purchaser any Licensure Surveys, including, without limitation,
reports, waivers of deficiency, plans of correction, and any other investigation reports issued with respect to the Facility between
the Effective Date and the Closing Date. Seller shall be obligated to deliver to Purchaser upon Purchaser’s request all
information and documentation within Seller’s control to enable Purchaser to make timely filings with the Governmental Authorities.

 

    	 	16	 

     

    

 

(f)          Capital
Expenditures. Seller shall complete all capital projects as needed on an emergency basis or as otherwise required to maintain
the Facility in good operating condition in a good and workmanlike manner, using materials and labor, all at Seller’s sole
cost and expense.

 

(g)          Changes
in Representations and Warranties. Throughout the period from the Effective Date through and including the Closing Date, Seller
shall give Purchaser prompt written notice of (i) any representation and warranty made by Seller in this Agreement which Seller
hereafter learns was inaccurate or incorrect when originally made and (ii) any event, change or occurrence which would make any
representation or warranty of Seller inaccurate or incorrect as of the time of such event, change or occurrence (Seller hereby
acknowledging and agreeing that all representations and warranties of Seller herein are hereby deemed to re-made and re-affirmed
by Seller each and every day while this Agreement is in effect) and (iii) any event, change or occurrence which will or reasonably
may be anticipated to prevent Seller from making the same representations and warranties as set forth herein on and as of the
Closing Date. The giving of any such notices shall not limit or modify any rights of Purchaser hereunder arising in the case of
a breach of a representation or warranty by Seller, and Purchaser shall have the right to terminate this Agreement at any time
prior to Closing following receipt by Purchaser of any such notice of a materially inaccurate or incorrect representation or warranty,
such determination of materiality to be made by Purchaser in its sole discretion.

 

ARTICLE
V.

COVENANTS OF PURCHASER

 

Purchaser
covenants and agrees with Seller that:

 

5.1         Confidentiality.
Prior to Closing, Purchaser will use its commercially reasonable efforts to keep confidential all information relating to the
terms of this Agreement, all information relating to Seller, and all financial statements, drawings, designs, customer and supplier
lists by Purchaser (other than information which is a matter of public knowledge or which has heretofore been or is hereafter
published in any publication for public distribution or filed as public information with any governmental authority or disclosed
pursuant to Applicable Law, order, subpoena or demand of any Governmental Authority (including any disclosure required of Purchaser’s
parent company pursuant to applicable securities laws) or as is necessary to be disclosed to lessors, lenders, Governmental Authorities,
Purchaser and Purchaser’s employees and third parties in order to consummate this transaction).

 

5.2         Compliance
with Laws. Purchaser shall comply in all material respects with all Applicable Laws Purchaser is required to comply with in
connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby.

 

    	 	17	 

     

    

 

5.3         Required
Consents; Governmental Approvals.

 

(a)          Subject
to Purchaser's performance of its obligation to cooperate and provide information as contemplated herein, Seller shall make all
filings with Governmental Authorities, and use commercially reasonable efforts to seek to obtain all permits, approvals, authorizations
and consents of all Governmental Authorities required to consummate the transactions contemplated by this Agreement, including,
without limitation, filing applications to obtain all necessary or appropriate approvals for all Licenses, agreements, certificates
and other consents from all Governmental Authorities, third parties and Government Program agencies, including, without limitation,
Government Program provider agreements entered into with each applicable Governmental Authority and the United States, if any,
and any municipality, or other governmental agency or administrative body that authorizes or regulates the operation of the Facility
and the conduct of the business thereon as presently operated upon terms and conditions acceptable to Purchaser in its sole discretion
(individually and collectively, "Governmental Approvals"). Each party shall furnish promptly to each other all
information that is not otherwise available to the other party and that such party may reasonably request in connection with any
such filing.

 

(b)          The
Governmental Approvals [PLEASE ADVISE OF deal-specific/state-specific approvals REQUIRED
WITH RESPECT TO LICENSURE] shall be referred to as "Required Consents".

 

(c)          Further
Documentation. Purchaser agrees that following the Closing Date, upon request by Seller, Purchaser will do, execute, acknowledge,
and deliver, or cause to be done, executed, acknowledged, and delivered, all such further acts, documents and assurances as may
be reasonably required, without enlarging or extending any obligations or liability of Purchaser under this Agreement in any manner
and without requiring the expenditure of funds by Purchaser, as necessary to fully consummate the transactions contemplated by
this Agreement.

 

(d)          Changes
in Representations and Warranties. Throughout the period from the Effective Date through and including the Closing Date, Purchaser
shall give Seller prompt written notice of any representation and warranty made by Purchaser in this Agreement which becomes materially
inaccurate or incorrect, to the extent Purchaser obtains knowledge of such inaccuracy or incorrectness.

 

ARTICLE
VI.

INDEMNIFICATION

 

6.1         Indemnification
by Seller. In addition to, and without limiting any indemnification obligation of Seller, as lessee under the Facility Lease,
Seller unconditionally and irrevocably indemnifies, protects and agrees to defend and hold harmless Purchaser from and against
any and all loss, cost or expense, including reasonable attorneys’ fees, arising from (i) the breach or violation of any
representation or warranty of Seller contained herein; (ii) the failure of Seller to satisfy or perform any covenant or other
provision contained herein; (iii) any violation of any covenant, condition or restriction affecting any Property; (iv) any encroachment
of buildings or other improvements onto adjoining lands or onto easements or licenses or rights-of-way located on any Property
which is not a Permitted Encumbrances; (v) the presence or existence of any Hazardous Substance on, in or under any Property;
and (vi) any claims made against Purchaser by any third party arising out of the transactions contemplated in this Agreement or
the Exhibits hereto (collectively, "Purchaser Indemnified Losses"). Payment shall not be a condition precedent
to recovery under the foregoing indemnification provision.

 

    	 	18	 

     

    

 

6.2         Indemnification
by Purchaser. Purchaser hereby unconditionally and irrevocably indemnifies, protects and agrees to defend and hold harmless
Seller from and against any and all loss, cost or expense, including costs and reasonable legal fees, incurred by Seller as a
result of the breach or violation of any representation or warranty of Purchaser hereunder. Payment shall not be a condition precedent
to recovery under the foregoing indemnification provision.

 

6.3         Notification
of Claims.

 

(a)          A
party entitled to be indemnified pursuant to Section 6.1 or 6.2 (the "Indemnified Party") shall notify the party
liable for such indemnification (the "Indemnifying Party") in writing of any claim or demand which the Indemnified
Party has determined gives rise or will likely give rise to a right of indemnification under this Agreement, as soon as possible
after the Indemnified Party becomes aware of such claim or demand and has made such determination; provided, however,
that the Indemnified Party’s failure to give such notice to the Indemnifying Party in a timely fashion shall not result
in the loss of the Indemnified Party’s rights with respect thereto except to the extent the Indemnified Party is prejudiced
by the delay. Subject to the Indemnifying Party’s right to defend in good faith third party claims as hereinafter provided,
the Indemnifying Party shall satisfy its obligations under this Article VII within thirty (30) days after the receipt of written
notice thereon from the Indemnified Party, it being agreed that the Indemnifying Party need not satisfy such obligations during
any period in which the Indemnifying Party is defending in good faith the applicable third party claim in the manner described
hereinbelow.

 

(b)          If
the Indemnified Party notifies the Indemnifying Party of any claim or demand pursuant to Section 6.3(a), and if such claim or
demand relates to a claim or demand asserted by a third party against the Indemnified Party which the Indemnifying Party acknowledges
is a claim or demand for which it must indemnify or hold harmless the Indemnified Party under Sections 6.1 or 6.2, the Indemnifying
Party shall have the right to either (i) pay such claim or demand or (ii) employ counsel reasonably acceptable to the Indemnified
Party to defend any such claim or demand asserted against the Indemnified Party. The Indemnified Party shall have the right to
participate in the defense of any such claim or demand. The Indemnifying Party shall notify the Indemnified Party in writing,
as promptly as possible (but in any case reasonably in advance of the due date for the answer or response to a claim) after the
date of the notice of claim given by the Indemnified Party to the Indemnifying Party under Section 6.3(a) of its election to defend
in good faith any such third party claim or demand. So long as the Indemnifying Party is defending in good faith any such claim
or demand asserted by a third party against the Indemnified Party and is able to demonstrate to the Indemnified Party its financial
wherewithal to fully perform its indemnification obligation in the event such contested claim is resolved adversely to the Indemnified
Party, the Indemnified Party shall not settle or compromise such claim or demand. The Indemnified Party shall make available to
such counsel all records and other materials in the Indemnified Party’s possession reasonably required by it for its use
in contesting any third party claim or demand. Whether or not the Indemnifying Party elects to defend any such claim or demand,
the Indemnified Party shall have no obligations to do so.

 

    	 	19	 

     

    

 

(c)          The
Indemnified Party shall have the right to participate in any matter through counsel of its own choosing at its own expense (unless
the Indemnified Party determines in good faith that there is a conflict of interest that prevents counsel for the Indemnifying
Party from representing the Indemnified Party, in which case the Indemnifying Party will have the right to choose and fund other
counsel to represent the Indemnified Party or to reimburse the Indemnified Party for the expenses of its counsel). After the Indemnifying
Party has notified the Indemnified Party of its intention to undertake to defend or settle any such Third Party Claim, and for
so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional
legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such Third Party Claim, except
to the extent such participation is requested by the Indemnifying Party, in which event the Indemnified Party shall be reimbursed
by the Indemnifying Party for reasonable legal expenses and out-of-pocket expenses incurred in connection with such requested
participation.

 

(d)          An
Indemnifying Party may not, without the prior written consent of the Indemnified Party, settle or compromise any claim against
an Indemnified Party or consent to the entry of any judgment with respect to which indemnification is being sought hereunder unless
such settlement, compromise or consent includes an unconditional release of the Indemnified Party from all liability arising out
of such claim and does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes
with the business of the Indemnified Party or any of the Indemnified Party’s affiliates.

 

ARTICLE
VII.

CONDITIONS TO THE OBLIGATIONS OF PURCHASER

 

Each
and every obligation of Purchaser under this Agreement, except for the obligations of Purchaser to be fulfilled prior to the Closing
and obligations that survive termination of this Agreement, shall be subject to the satisfaction, on or before the Closing,
of each of the following conditions set forth in this Article, unless waived in writing by Purchaser. The following constitute
material conditions to Purchaser’s performance hereunder, the failure of any of which shall entitle Purchaser to terminate
this Agreement upon written notice to Seller:

 

7.1          Representations
and Warranties; Performance.

 

(a)          The
representations and warranties made by Seller herein and in the Related Documents shall be true and correct in all material respects
(materiality to be determined by Purchaser in its discretion) as of the Effective Date and at and as of the Closing, with the
same effect as though made on such date.

 

(b)          Seller
shall have performed and complied with each of its covenants pursuant to this Agreement or any Related Documents in all material
respects through the Closing.

 

7.2          Required
Consents; Authorization.

 

(a)          Purchaser
or its designee shall have received or obtained all internal approvals and Required Consents.

 

    	 	20	 

     

    

 

(b)          Purchaser
shall have received certified copies of resolutions duly adopted by the board of directors of Seller (or Seller’s general
partner, manager or members, as appropriate) approving the transactions contemplated by this Agreement.

 

(c)          No
Destruction or Condemnation of Property. The Facility shall not have suffered material damage, destruction or condemnation
loss (or received notice of an impending condemnation loss). If, after the Effective Date, the Facility incurs damage, destruction
or condemnation loss (or received notice of an impending condemnation loss) which is not material damage, destruction or loss,
Seller shall be required to repair any such damage, destruction or loss (in all instances to restore the Facility to fully functional
status consistent with prior operation) before Purchaser shall be obligated to proceed to Closing. For the purposes of this Section,
"material damage, destruction or loss," shall mean damage to, or condemnation loss (or impending condemnation loss)
that (a) is reasonably expected to cost $100,000.00 or more to repair, (b) materially interferes with the operation of the Facility
or (c) renders the Facility less than a functional structure in which Seller can operate the business currently conducted thereon.

 

(d)          No
Proceeding or Litigation. No injunction, judgment, order, decree, ruling or charge shall be in effect under any action, suit
or proceeding before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction
or before any arbitrator that (i) prevents consummation of any of the transactions contemplated by this Agreement or the Facility
Lease or (ii) would cause any of the transactions contemplated by this Agreement or the Facility Lease to be rescinded following
consummation, provided that Purchaser has not solicited or encouraged any such action, suit or proceeding.

 

(e)          Title
Insurance. Title to the Real Property shall be as required by Section 4.10 above, Purchaser shall have received the Title
Policy in the form therein free and clear of encumbrances other than the Permitted Encumbrances.

 

(f)          Material
Adverse Change. There has been no Material Adverse Change. For purposes hereof, the term "Material Adverse Change"
shall mean any change or event or effect that is materially adverse to the Assets, business, prospects or financial condition
of the Facility or in the adjusted net operating income of the Facility, each as reasonably determined by Purchaser.

 

(g)          Other
Agreements. Seller shall have delivered into the Closing escrow its countersigned copies of the Seller Documents.

 

(h)          Purchaser
Financing. On terms and conditions satisfactory to Purchaser in its sole discretion, Purchaser shall have obtained financing
secured by the Assets to complete the transaction contemplated by this Agreement. Seller shall reasonably cooperate with Purchaser
to provide documents, records, financial statements and other such information as may be requested by Purchaser’s lender
in order for Purchaser to secure necessary financing. Such cooperation shall include, without limitation, execution and delivery
of a subordination agreement for the Facility Lease, if required.

 

    	 	21	 

     

    

 

ARTICLE
VIII.

CONDITIONS TO THE OBLIGATIONS OF SELLER

 

Each
and every obligation of Seller under this Agreement, except for the obligations to be fulfilled prior to the Closing and obligations
that survive termination of this Agreement, shall be subject to the satisfaction, on or before the Closing, of each of the following
conditions unless waived in writing by Seller:

 

8.1          Representations
and Warranties; Performance.

 

(a)          The
representations and warranties made by Purchaser herein and in the Related Documents, shall be true and correct in all material
respects on and as of the Effective Date and at and as of the Closing, with the same effect as though made on such date.

 

(b)          Purchaser
shall have performed and complied with all covenants required by this Agreement to be performed and complied in all material respects
with by Purchaser prior to the Closing.

 

8.2          Other
Agreements. Purchaser shall have delivered into the Closing escrow its countersigned copies of the Purchaser Documents.

 

ARTICLE
IX.

CLOSING

 

9.1          Possession
and Closing Documents.

 

(a)          Possession.
Possession of all Assets sold hereunder shall be delivered to Purchaser on the Closing Date unless Tenant is entitled possession
thereto pursuant to the terms of the Facility Lease.

 

(b)          Closing
Documents. Seller shall deliver to Purchaser on the Closing Date:

 

(i)          A
duly executed special warranty deed conveying the Real Property and Improvements to Purchaser, free and clear of all encumbrances
other than the Permitted Encumbrances (the "Deed");

 

(ii)         A
duly executed Bill of Sale for any personal property that is a part of the Facility, in the form attached hereto as Exhibit
I;

 

(iii)        An
assignment of the Tenant Leases to Tenant, in the form attached as Exhibit J. It is understood that the Tenant Leases will
be subleases after Closing.

 

(iv)        Such
additional bills of sale, certificates of title and other appropriate instruments of assignment and conveyance, in form mutually
but reasonably satisfactory to Purchaser and Seller, dated as of the Closing, conveying all title to the Assets, free and clear
of all liens, liabilities, security interests or encumbrances except as otherwise permitted herein;

 

    	 	22	 

     

    

 

(v)         Evidence
of the authority of Seller to execute and deliver the Seller Documents in order to effectuate the Closing;

 

(vi)        Duly
executed affidavit in form satisfactory to obtain the Title Policy, without exception for mechanic’s, materialman’s
or other statutory liens;

 

(vii)       A
closing statement setting forth in reasonable detail the financial transactions contemplated by this Agreement, including, without
limitation, the Purchase Price, all prorations, and the allocation of costs specified herein ("Closing Statement"),
duly executed by Seller;

 

(viii)      A
duly executed bring-down certificate in form acceptable to Purchaser, reaffirming that the representations and warranties of Seller
are true and correct as of the Closing Date;

 

(ix)         A
duly executed certificate and affidavit of non-foreign status;

 

(x)          The
duly executed Facility Lease and Guaranty in the form attached as Exhibit K. In addition, Tenant, as Tenant, shall execute
and deliver to Purchaser, as lessor, such Uniform Commercial Code financing statements and/or fixture filings evidencing Purchaser’s
ownership of the Personal Property. Such financing statements and/or fixture filings shall describe with particularity the Personal
Property, shall be in form sufficient for recording or filing, as applicable, with the appropriate Governmental Authority and
shall be otherwise satisfactory to Purchaser; and

 

(xi)         Any
other documents reasonably required by the Title Company.

 

(c)          Purchaser
shall deliver to Seller or cause to be delivered to Seller on the Closing Date, in addition to the Deposits set forth in Section
1.4 above, the following:

 

(i)          the
duly executed Facility Lease;

 

(ii)         the
Closing Statement.

 

9.2          Closing
Adjustments. There shall be no adjustment of taxes, assessments, water charges, utilities, receivables or rents, if any, premiums
on existing insurance policies, if any, or any other items relating to the Assets, it being understood by the parties that Seller,
as lessee under the Facility Lease, shall be obligated to pay the same under the terms thereof from and after the Closing Date.

 

9.3          Closing
Costs. Seller shall pay all Closing costs up to One Hundred Thousand and No/100 Dollars ($100,000.00) (the “Cap”),
including without limitation (i) any escrow or closing charges of the Title Company, (ii) the title exam fees and the premium
for the Title Policy and Lender’s title policy and the cost of all title endorsements required by Purchaser or its lender,
(iii) any recording fees associated the recording of the Deeds, (iv) all grantor’s tax or other similar transfer taxes,
(v) all costs (including recording costs) to payoff and release any Monetary Encumbrance, (vi) any brokerage fees associated with
this transaction, (vii) the costs of any UCC searches required by Purchaser or its lender; (viii) costs associated with the inspections
and investigations conducted by Purchaser or its agents or representatives during the Due Diligence Period to the extent not covered
by the Deposit; (v) all expenses incident to any financing obtained for the purchase of the Assets; and (vi) attorney’s
fees for Seller, Purchaser and any Purchaser’s lender. The Deposit shall be applied to the Closing costs to be borne by
Seller, with any excess remaining to be refunded to Seller at Closing. Seller shall either (i) bear the Closing costs up
to the Cap; or (ii) the Closing costs up to the Cap to the Purchase Price at Closing, provided the Minimum Rent payable under
the Facility Lease will be increased accordingly. Purchaser shall pay all Closing costs in excess of the Cap.

 

    	 	23	 

     

    

 

ARTICLE
X.

DEFAULT; REMEDIES

 

10.1        Purchaser’s
Default. If at any time Purchaser is in default of any representation, warranty or covenant of Purchaser under this Agreement
in any material respect, and Seller gives notice of such default to Purchaser ("Seller’s Notice") then
Purchaser will have a period expiring on the tenth (10th) Business Day after the date of Seller’s Notice ("Purchaser’s
Cure Period"), to (i) correct or cure Purchaser’s default or (ii) if the Due Diligence Period has not expired,
to terminate this Agreement by notice to Seller, whereupon the Deposit Balance shall be returned to Seller and neither party shall
have any further rights, duties or obligations hereunder except as expressly survive the termination hereof.

 

10.2        Default
Cured. If Purchaser does not elect to terminate during the Due Diligence Period, and Purchaser’s default is corrected
or cured within Purchaser’s Cure Period, the parties shall proceed to Closing as herein provided, with the Closing Date
being extended by not more than fourteen (14) days to accommodate any delay resulting from such default.

 

10.3        Default
Not Cured. If Purchaser does not elect to terminate during the Due Diligence Period, and Purchaser does not cure its default
within the Purchaser’s Cure Period, then, provided no default by Seller then exists and provided that Seller has not elected
to waive such default, this Agreement shall terminate and the parties shall be released and discharged of and from all further
obligations and liabilities under this Agreement, and the Deposit Balance shall be paid to Seller as Seller’s sole and exclusive
liquidated damages and in full and complete settlement and liquidation of all damages sustained by Seller, it being acknowledged
by Seller and Purchaser that the amount of damages incurred by Seller as a result of Purchaser’s default would be substantial
but difficult, if not impossible, to ascertain and that such liquidated damages represent the parties’ best estimate of
the damages Seller will incur as a result of such default. Seller shall not be entitled to exercise any other rights, powers or
remedies at law or in equity, other than its right to receive the Deposit Balance pursuant hereto, and Seller hereby expressly
and irrevocably waives all such other rights, powers and remedies and hereby covenants not to sue.

 

10.4        Seller’s
Default. If Seller is in default of any representation, warranty or covenant of Seller under this Agreement in any material
respect and Purchaser gives notice of such default to Seller ("Purchaser’s Notice"), then Seller will have
a period expiring on the tenth (10th) Business Day after the date of Purchaser’s Notice ("Seller’s
Cure Period"), to correct or cure Seller’s default.

 

    	 	24	 

     

    

 

10.5        Default
Cured. If Seller’s default is corrected or cured within Seller’s Cure Period, the parties shall proceed to Closing
as herein provided, with the Closing Date being extended by not more than fourteen (14) days to accommodate any delay resulting
from such default.

 

10.6        Default
Not Cured. If Seller does not cure its default within the Seller’s Cure Period then, upon notice to Seller, Purchaser
may elect to either (i) proceed to Closing, in which case, in addition to the right to monetary damages resulting from such default,
Purchaser will have the right to maintain an equitable action against Seller for specific performance of its obligation to sell
the Assets and to perform hereunder; or (ii) terminate this Agreement. If Purchaser elects to terminate this Agreement under
subsection (ii) above, then (A) the Deposit shall be retained by Purchaser; and (B) Purchaser shall be entitled to pursue an action
for damages against Seller.

 

ARTICLE
XI.

MISCELLANEOUS PROVISIONS

 

11.1        Amendment
and Modification. This Agreement may be amended, modified and supplemented only by written agreement of all the parties with
respect to any of the terms contained herein.

 

11.2        Waiver
of Compliance; Consent. Any failure of Seller on the one hand, or Purchaser, on the other hand, to comply with any
obligation, covenant, agreement or condition may be waived in writing by the other party, but such waiver or failure to insist
upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. Whenever this Agreement requires or permits consent by or on behalf of any party,
such consent shall be given in writing in a manner consistent with the requirements for a waiver of compliance as set forth in
this Section.

 

11.3        Notices.
All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be personally
delivered, or sent by facsimile transmission (provided a copy is thereafter promptly mailed as hereinafter provided), or sent
by overnight commercial delivery service (provided a receipt is available with respect to such delivery), or mailed by first-class
registered or certified mail, return receipt requested, postage prepaid (and shall be effective when received, if sent by personal
delivery or by facsimile transmission or by overnight delivery service, or on the third (3rd) day after mailing, if
mailed):

 

	If
    to Seller, to:		 
	 	 	 
	 	[Cherry Hills Real Estate, LLC]	 
	 	 	 	 
	 	 	 	 
	 	Attention:	 	 
	 	Fax No.:	 	 
	 	E-mail:	 	 

 

    	 	25	 

     

    

 

	with
    copies to (which shall not constitute notice):	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Attention:	 	 
	 	Fax
    No.:	 	 
	 	E-mail:	 	 

 

If
to Purchaser, to:

	 	 	 
	 	Global Medical
    REIT, Inc.	 
	 	4800 Montgomery
    Lane, Suite 450	 
	 	Bethesda, Maryland
    20814	 
	 	Fax: 202 380
    0891	 
	 	Email: AlfonsoL@GlobalMedicalREIT.com	 
	 	 	 
	 	with a copy
    to:	 
	 	 	 
	 	Bradley Arant
    Boult Cummings LLP	 
	 	1600 Division
    Street, Suite 700	 
	 	Nashville, TN
    37203	 
	 	Attn: Ann Peldo
    Cargile	 
	 	Fax: 615-252-2373	 
	 	Email:  acargile@babc.com	 

 

or
to such other person or address as any party shall furnish to the other parties in writing pursuant to this Section. Notwithstanding
the foregoing, Purchaser shall be permitted in connection with the exercise of its rights to terminate this Agreement or to give
title, survey or environmental objections on or before the expiration of the Due Diligence Period to send any such termination
or objection notice via electronic mail which shall constitute effective delivery for purposes hereof.

 

11.4        Brokers
and Finders; Expenses. Except for Seller’s retention of _________________, whose compensation shall be the sole obligation
and responsibility of Seller, the parties hereto represent and warrant to each other that none of them has retained any broker
or finder in connection with this transaction. Seller on the one hand, and Purchaser, on the other, each agrees to indemnify the
other for any losses incurred with respect to a breach of this Section. Except as otherwise provided herein, each party hereto
shall bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions
contemplated hereby.

 

11.5        Attorney’s
Fees. In the event any proceeding or suit is brought to enforce this Agreement, the prevailing party shall be entitled to
all reasonable costs and expenses (including reasonable attorneys’ fees) incurred by such party in connection with any action,
suit or proceeding to enforce the other’s obligations under this Agreement.

 

    	 	26	 

     

    

 

11.6        Assignment.
This Agreement and all the provisions hereof shall be binding upon and inure to the benefit of the parties and their respective
heirs, successors and permitted assigns. Purchaser may assign its rights under the Agreement to an affiliate that controls Purchaser
or is controlled by Purchaser or is under common control with Purchaser, including joint venture entities in which Purchaser or
its affiliates share control with third parties, without the prior written consent of Seller (each such assignee a "Purchaser’s
Permitted Assignee"). Other than the foregoing, neither Purchaser nor Seller may assign this Agreement without first
obtaining the other party’s written consent, which may be withheld in such other party’s sole discretion. Upon an
assignment by Purchaser of its rights under the Agreement in accordance with this Section, Purchaser’s Permitted Assignee(s)
shall be deemed to be the Purchaser hereunder and shall be the beneficiary of all of Seller’s warranties, representations
and covenants in favor of Purchaser under this Agreement. If there is more than one Seller hereunder, the obligations of Sellers
hereunder shall be joint and several.

 

11.7        Governing
Law. This Agreement shall be governed by the laws of the State where the Facility is located as to, including, but not limited
to, matters of validity, construction, effect and performance but exclusive of its conflicts of laws provisions.

 

11.8        Business
Day. If the date for the giving of notice or performance of any duty or obligation hereunder falls on a day that is not a
Business Day, such date shall be automatically extended to the next Business Day. As used herein, a "Business Day"
means any day other than a Saturday, Sunday or any other day on which banks are authorized to be closed in the State of Tennessee.

 

11.9        Counterparts;
Facsimile Signature. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Executed counterparts of this Agreement or any amendment
hereto may be delivered by electronic or facsimile transmission.

 

11.10      Headings.
The Article and Section headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

11.11      Entire
Agreement. This Agreement, which term as used throughout includes the Exhibits hereto, embodies the entire agreement and understanding
of the parties in respect of the subject matter contained herein. There are no restrictions, promises, representations, warranties,
covenants or undertakings, other than those expressly set forth or referred to herein. This Agreement supersedes all prior agreements
and understandings among the parties hereto with respect to such subject matters contained herein.

 

11.12      Warranty
of Authority. Each of the parties warrants that the persons signing on their behalf have the right and power to enter into
this Agreement and to bind them to the terms of this Agreement. 

 

11.13      Exhibits.
Nothing in any Exhibit shall be deemed adequate to disclose an exception to a representation or warranty made herein unless the
applicable Exhibit identifies the exception and the specific representation to which it relates with reasonable particularity
and describes the relevant facts in reasonable detail. Any fact or item disclosed on any Exhibit hereto shall not be deemed by
reason only of such inclusion, to be material and shall not be employed as a point of reference in determining any standard of
materiality under this Agreement.

 

    	 	27	 

     

    

 

11.14      Reliance.
In executing and in carrying out the provisions of this Agreement, the parties are relying solely on the representations, warranties
and agreements contained in this Agreement and on any writing delivered pursuant to provisions of this Agreement or at the Closing
of the transactions herein provided for and not upon any representation, warranty, agreement, promise or information, written
or oral, made by any person other than as specifically set forth herein or therein.

 

11.15      Publicity.
No party shall issue any press release or public announcement relating to the subject matter of this Agreement without the prior
written approval of the other parties, which approval shall not be unreasonably withheld or delayed; provided, however,
that any party may make the following public disclosure (without the consent of the other party): (a) if prior to Closing, such
disclosure it believes in good faith is required by Applicable Law or stock market rule; or (b) if post-Closing, disclosure of
such of the principal terms of the transaction contemplated by this Agreement that such party elects to make.

 

11.16      Waiver
of Jury Trial. EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, INCLUDING TO ENFORCE OR DEFEND
ANY RIGHTS HEREUNDER, AND AGREES THAT ANY SUCH ACTION SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

[SIGNATURE
PAGES FOLLOW]

 

    	 	28	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed or have caused their duly authorized officers to execute this Agreement
as of the date first written above.

 

	 	GLOBAL
    MEDICAL REIT, INC., a Maryland corporation
	 	 	 
	 	By:	 
	 	 	Chief Executive
    Officer
	 	 	 
	 	Date:	____________, 20__

 

[SELLER’S
SIGNATURE PAGES TO FOLLOW]

 

    	 	29	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed or have caused their duly authorized officers to execute this Agreement
as of the date first written above.

 

	 	[CHERRY
    HILLS REAL ESTATE, LLC, a  limited liability company]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date:	_____________,
    20__

 

    	 	30	 

     

    

 

EXHIBIT
A

 

The
Facility

 

	Name	 	Address	 	Type
	Surgical Institute
    of Michigan	 	33545 Cherry Hill
    Rd, 

    Westland, Michigan	 	Surgery Center

 

     

     

    

 

EXHIBIT
B

 

Legal
Description of the Real Property

 

     

     

    

 

EXHIBIT
C 

 

Preliminary
Due Diligence Checklist

 

	1.	Company Information
	 	a.	Bios for key management team
	 	b.	Organizational structure and ownership charts
	 	c.	Description of entity ownership, ownership record
    book, and equity holder list
	 	d.	List of medical staff by specialty (age, board
    certification)
	 	e.	Description of physician recruitment efforts
    and plans
	 	f.	List/description of key contracts (physicians,
    managed care, suppliers, software vendors, service agreements, facilities, etc.)
	 	g.	Insurance certificate and loss run reports for
    the Operator/Tenant
	 	h.	Description of current loans and material covenants
	 	i.	Description of any pending, threatened, or past
    litigations
	2.	Certification, Compliance, and Regulator
	 	a.	Accreditation certificates (JCAHO, AAAHC, etc.)
    and any accreditation survey reports and the responses to any noted deficiencies or to conditional accreditation
	 	b.	Any governmental approvals, permits, certificates,
    registrations, licenses and the like required in order for the facility to conduct its business
	 	c.	Quality reports or summary quality data for
    the facility
	 	d.	Copies of Medicare Cost Report (if applicable)
	 	e.	Summary of any notices from governmental entities
    regarding any possible violations
	3.	Real Estate Physical Assessment
    Due Diligence
	 	a.	Environmental Phase I and physical assessment
    condition reports
	 	b.	Surveys, title insurance policy, and title commitments
	 	c.	Copies of any document affecting use of property
    (easements, HOAs, CCRCs, etc)
	 	d.	Building floor plans and space measurement reports
	 	e.	Any certificate or license needed to occupy
    and use the building
	 	f.	List of major capital expenditures in the past
    three years
	 	g.	Fixed asset roll-forward report and depreciation
    schedules
	4.	Financial Information
	 	a.	Operator/Tenant and Guarantor Financial Statements
	 	b.	Cash flow statement, income statement, and balance
    sheet
	 	c.	Year-end and year-to-date for past three years
	 	d.	Monthly for trailing twelve months (preferably
    in excel or text)
	 	e.	Current and next year detailed budget with supporting
    assumptions
	 	f.	Entity that owns real estate being sold (if
    applicable)
	 	g.	Cash flow statement, income statement, and balance
    sheet
	 	h.	Year-end and year-to-date for past three years
	5.	Information on real estate being
    sold
	 	a.	Copies of appraisals done to obtain bank financing
	 	b.	Copies of utility bills for past two years
	 	c.	Copies of any leases or subleases
	 	d.	Property tax bills for the past two years (assessment
    notice & tax bills)
	 	e.	Summary/list of any building service contract
    (HVAC, elevators, etc)

 

     

     

    

 

	6.	Revenue Due Diligence
	 	a.	Revenue break downs, collection
    rate, A/R schedule, and bad debt allowance by payor for past two years, including out-of-network and co-pays percentages
	 	b.	Description of billing and collections systems
    and practices
	 	c.	Utilization stats, case volumes and revenue
    by specialty and by physician
	 	d.	List/decryption of contracts with insurance
    companies

 

    	 	2	 

     

    

 

EXHIBIT
D

 

Tenant
Leases

 

Affiliates
in Urology, P.C., a Michigan professional corporation.

 

     

     

    

 

EXHIBIT
E

 

Licenses

 

     

     

    

 

EXHIBIT
F

 

Required
Notices to Governmental Authorities

 

     

     

    

 

EXHIBIT
G

 

Litigation

 

     

     

    

 

EXHIBIT
H

 

Insurance

 

     

     

    

 

EXHIBIT
I

 

THIS
BILL OF SALE AND ASSIGNMENT (this "Bill of Sale and Assignment")’ is made this ____ day of __________, 2011, by
and between __________________, a ______________ ("Transferor"), and __________________, a ______________ ("Transferee").
All capitalized terms used herein, but not specifically defined herein, shall have the meanings given to such terms in that certain
Asset Purchase Agreement dated of even date herewith (the "Agreement") by and between Transferor and Transferee.

 

RECITALS

 

A.           Transferor
is the owner of that certain real property located in ________________ County, -----------------, consisting of approximately
__________ acres as more particularly described in Exhibit A attached hereto and incorporated herein by this reference
(the "Land"). Transferor is also the owner of all buildings, structures and other improvements situated on the Land
comprising the approximately ________ square foot, ________ unit ____________ facility (collectively, the "Improvements"),
together with the Personal Property (as defined herein) used in connection therewith. The Land and the Improvements shall be referred
to herein, collectively, as the "Facility."

 

B.           Pursuant
to the Agreement, Transferor is required to transfer and assign to Transferee as of the Closing Date (as defined in the Agreement)
all of Transferor’s right, title and interest in and to the Facility, including the Personal Property.

 

C.           In
order to perfect the transfer and vesting of the Personal Property to and in Transferee and in order that Transferee shall be
in possession of an instrument evidencing the same, as set forth more fully herein and in the Agreement, Transferor and Transferee
have made and entered into this Bill of Sale and Assignment.

 

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

 

1.            Transfer
and Assignment of Personal Property. Effective as of the date hereof, Transferor hereby grants, assigns, transfers, conveys
and delivers to Transferee, absolutely and unconditionally, and free from all encumbrances and other claims of any kind, all of
Transferor’s right, title and interest in and to the Personal Property (as defined in the Agreement). Transferor hereby
warrants and defends unto Transferee, its successors and assigns, all right, title and interest in the Personal Property against
every person whomsoever claiming all or any part thereof or interest therein.

 

2.            Acceptance.
Except as otherwise provided in the Agreement, Transferee hereby accepts the foregoing transfer and assignment of Personal
Property.

 

     

     

    

 

3.          Further
Assurances. Transferor transfers the Personal Property to Transferee, its successor and assigns, to have and hold to and for
its and their own use and benefit forever. Transferor, for itself and its successors and assigns, hereby covenants that, from
time to time after the Closing Date, at Transferee’s request and without further consideration, Transferor shall execute
and deliver such other instruments of conveyance and transfer and take such other actions as Transferee reasonably may require
to vest more effectively the Personal Property in Transferee, its successors and assigns, and to place Transferee in possession
of the Personal Property, and to do all other things and execute and deliver all other instruments and documents as may be required
to effect the same.

 

4.          Enforcement.
In the event of any action or suit by either party hereto against the other arising from or interpreting this Bill of Sale
and Assignment, the prevailing party in such action or suit shall, in addition to such other relief as may be granted, be entitled
to recover its costs of suit and actual attorneys’ fees, whether or not the same proceeds to final judgment.

 

5.          Successors
and Assigns. This Bill of Sale and Assignment shall be binding upon and inure to the benefit of Transferor and Transferee
and their respective successors and assigns.

 

6.          Counterparts.
This Bill of Sale and Assignment may be executed in multiple counterparts, all of which shall be but one and the same instrument,
binding on all parties when all separately executed copies have been fully delivered.

 

7.          Governing
Law. This Bill of Sale and Assignment shall be construed and enforced according to and governed by the laws of the State in
which the Land is located.

 

[Remainder
of Page Intentionally Left Blank. Signatures on Following Page.]

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF, Transferor and Transferee have executed this Bill of Sale and Assignment as of the date first written above.

 

	 	"Transferor"
	 	_________________________________,
	 	a
    ________________________________

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	"Transferee"
	 	_________________________________,
	 	a
    ________________________________

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	3	 

     

    

 

EXHIBIT
J

 

ASSIGNMENT
AND ASSUMPTION OF LEASE

 

The
Parties to this Assignment are                                (“Assignor”), whose mailing address is                              and                     (“Assignee”),
whose mailing address is                            . This Assignment shall be effective as of ________ __, 20__ (the “Effective Date”).
Assignor and Assignee are sometimes referred to herein as the “Parties.”

 

WHEREAS,
Assignor is the landlord under that certain Lease dated March, 2001 with                    , a                                (“Tenant”), amended
by that certain                                dated                    
(collectively, the “Lease”), which Lease is guaranteed by                                  (“Guarantor”) pursuant to which
the Tenant leases the Premises, as described in the Lease; and

 

WHEREAS,
Assignee desires to purchase and assume from Assignor, and Assignor desires to sell and assign to Assignee all of the rights,
benefits, and privileges as “Landlord” under the Lease, as set forth in this Assignment.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein set forth:

 

1.          As
of the Effective Date, Assignor does hereby assign, transfer, and deliver unto Assignee all of the right, benefits and privileges
as “Landlord” under the Lease, subject to all terms, conditions, reservations and limitations set forth in the Lease.

 

2.          As
of the Effective Date, Assignee accepts, on the terms and conditions herein specified, this Assignment, and assumes the obligations,
liabilities and performance of all the terms and conditions of “Landlord” to be performed under the Lease from and
after the Effective Date.

 

3.          Assignor
hereby agrees to indemnify and hold harmless Assignee from and against any and all loss, cost or expense (including, without limitation,
reasonable attorney’s fees) to the extent resulting by reason of the failure of Assignor to perform any of the obligations
as “Landlord” under the Lease prior to the Effective Date.

 

4.          Assignee
hereby agrees to indemnify and hold harmless Assignor from and against any and all loss, cost or expense (including, without limitation,
reasonable attorney’s fees) resulting by reason of the failure of Assignee to perform any of the obligations as “Landlord”
under the Lease on and after the Effective Date.

 

5.          Assignor
hereby covenants with Assignee and its heirs, successors or assigns to warrant and defend Assignee against any person lawfully
claiming by, under or through Assignor in a manner adverse to Assignee’s interest as “Landlord” in the Lease
on and from the Effective Date.

 

     

     

    

 

6.          No
course or dealing between Assignor and Assignee and no delay on the part of any party in exercising any rights under this Assignment
shall operate as a waiver of the rights of the Assignor or the Assignee. No covenant or other provision of this Assignment may
be waived unless by a written instrument signed by the Parties so waiving such covenant or other provision.

 

7.          Whenever
possible, each provision of this Assignment shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Assignment shall be prohibited or invalid, the remainder of this Assignment shall continue in
full force and effect. This Assignment has been made and entered into in the State of, and the laws of the state shall
govern the validity and interpretation hereof and the performance hereunder by the Parties hereto.

 

8.          The
signatories to this Assignment represent that they have the right and power to legally bind to this Assignment the partnerships
they represent. All of the covenants, terms and conditions set forth herein shall be binding upon and shall inure to the benefit
of the Parties hereto and their respective heirs, legal representatives, successors and assigns.

 

9.          This
Assignment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Executed counterparts of this Assignment or any amendment hereto may be delivered
by electronic or facsimile transmission.

 

[SIGNATURE
PAGES FOLLOW]

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Assignment as of the Effective Date.

 

	 	ASSIGNOR:
	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

[ASSIGNEE’S
SIGNATURE PAGE TO FOLLOW]

 

    	 	3	 

     

    

 

EXIHIBIT
K

 

Facility
LeaseExhibit 10.3

 

 

 

LEASE

 

between

 

[AFFILIATE OF GLOBAL MEDICAL REIT, INC.],
a Delaware limited liability company as Landlord

 

AND

 

THE SURGICAL INSTITUTE OF MICHIGAN, LLC,
a Delaware limited liability company

as Tenant

 

Dated as of __________, ___, 20___

 

 

 

    	 

     

    

 

LEASE

 

THIS LEASE (“Lease”)
is dated as of _________, ___, 20__, and is by and between                                 ,
a Delaware limited liability company (“Landlord”), and THE SURGICAL INSTITUTE OF MICHIGAN, LLC, a Delaware
limited liability company (“Tenant”), on the other hand.

 

SECTION
1

 

1.1          Premises;
Term. Upon and subject to the terms and conditions hereinafter set forth, Landlord leases to Tenant, and Tenant leases from
Landlord, all of Landlord’s rights and interests in and to the following (collectively, the “Premises”):

 

(a)          the
real property or properties described in Exhibit A hereto (the “Land”);

 

(b)          all
buildings, structures, Fixtures (as hereinafter defined) and other improvements of every kind now or hereafter located on the
Land, including alleyways and connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site and off-site to the extent
Landlord has obtained any interest in the same), parking areas and roadways appurtenant to such buildings and structures and Capital
Additions thereto (collectively, the “Leased Improvements”);

 

(c)          all
easements, rights and appurtenances relating to the Land and the Leased Improvements (collectively, the “Related Rights”);

 

(d)          all
equipment, machinery, fixtures, and other items of real and/or personal property, including all components thereof, now and hereafter
located in, on or used in connection with and permanently affixed to or incorporated into the Leased Improvements, including all
furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating, refrigerating, incineration, air and
water pollution control, waste disposal, air cooling and air conditioning systems, apparatus, sprinkler systems, fire and theft
protection equipment; and built in oxygen and vacuum systems (if any), all of which, to the greatest extent permitted by law,
are hereby deemed to constitute real estate, together with all replacements, modifications, alterations and additions thereto
(collectively, the “Fixtures”); and

 

(e)          the
machinery, equipment, furniture and other personal property described on Exhibit B attached hereto, together with any other
items of personal property conveyed to Landlord pursuant to the Purchase Contract, together with all replacements, modifications,
alterations and substitutes therefor (whether or not constituting an upgrade) (collectively, “Landlord’s Personal
Property”).

 

SUBJECT, HOWEVER, to the
easements, encumbrances, covenants, conditions and restrictions and other matters that affect the Premises as of the date hereof
or the Commencement Date or that are created thereafter as permitted hereunder, to have
and to hold for (1) the Fixed Term (as defined below), and (2) the Extended Terms provided for in Section 19.1, unless
this Lease is earlier terminated as hereinafter provided.

 

    	 

     

    

 

SECTION
2

 

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

 

Acquisition Price:
The sum of $4,750,000.

 

Additional Charges:
As defined in Section 3.2.

 

Affiliate: Any
Person which, directly or indirectly (including through one or more intermediaries), controls or is controlled by or is under
common control with any other Person, including any Subsidiary of a Person. For purposes of this definition, the definition of
Controlling Person below, and Section 24.1.1 below, the term “control” (including the correlative meanings of the
terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean
the possession, directly or indirectly (including through one or more intermediaries), of the power to direct or cause the direction
of the management and policies of such Person, through the ownership or control of voting securities, partnership interests or
other equity interests or otherwise. Without limiting the generality of the foregoing, when used with respect to any corporation,
limited liability company or other legal entity, the term “Affiliate” shall also include (i) any Person which owns,
directly or indirectly (including through one or more intermediaries), Fifty Percent (50%) or more of any class of voting security
or equity interests of such entity, (ii) any Subsidiary of such entity and (iii) any Subsidiary of a Person described in clause
(i).

 

AIU. Affiliates
in Urology, P.C., a Michigan professional corporation.

 

AIU December 2021 Rent.
The rent payable by AIU under its sublease for December 2021.

 

Appraiser: As defined
in Section 34.1

 

Award: All compensation,
sums or anything of value awarded, paid or received on a total or partial Condemnation.

 

Bankruptcy Code:
The United Stated Bankruptcy Code (11 U.S.C. § 101 et seq.), and any successor statute or legislation thereto.

 

    	 	- 2 -	 

     

    

 

Business Day: Each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which national banks in the City of New York, New York are
authorized, or obligated, by law or executive order, to close.

 

Capital Additions:
One or more new buildings, or one or more additional structures annexed to any portion of any of the Leased Improvements, or the
material expansion of existing improvements that are constructed on any parcel or portion of the Land during the Term including
the construction of a new wing or new story, or the repair, replacement, restoration, remodeling or rebuilding of the existing
Leased Improvements or any portion thereof.

 

Capital Addition Costs:
The costs of any Capital Addition made to the Premises whether paid for by Tenant or Landlord, including (i) all permit fees and
other costs imposed by any governmental authority, the cost of site preparation, the cost of construction including materials
and labor, the cost of supervision and related design, engineering and architectural services, the cost of any fixtures, and if
and to the extent approved by Landlord, the cost of construction financing; (ii) fees paid to obtain necessary licenses and certificates;
(iii) if and to the extent approved by Landlord in writing and in advance, the cost of any land contiguous to the Premises that
is to become a part of the Premises purchased for the purpose of placing thereon the Capital Addition or any portion thereof or
for providing means of access thereto, or parking facilities therefor, including the cost of surveying the same; (iv) the cost
of insurance, real estate taxes, water and sewage charges and other carrying charges for such Capital Addition during construction;
(v) the cost of title insurance; (vi) reasonable fees and expenses of legal counsel; (vii) filing, registration and recording
taxes and fees; (viii) documentary stamp and similar taxes; and (ix) all reasonable costs and expenses of Landlord and any Person
that has committed to finance the Capital Addition, including (1) the reasonable fees and expenses of their respective legal counsel;
(2) printing expenses; (3) filing, registration and recording taxes and fees; (4) documentary stamp and similar taxes; (5)
title insurance charges and appraisal fees; (6) rating agency fees; and (7) commitment fees charged by any Person advancing or
offering to advance any portion of the financing for such Capital Addition.

 

Code: The Internal
Revenue Code of 1986, as amended.

 

Collateral: As
defined in Section 16.7.1.

 

Commencement Date:
The date hereof.

 

Condemnation: The
exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor or a voluntary sale or transfer
by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending.

 

Condemnor: Any
public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

Controlling Person:
Any (i) Person(s) that, directly or indirectly (including through one or more intermediaries), controls Tenant and would be deemed
an Affiliate of Tenant, including any partners, shareholders, principals, members, trustees and/or beneficiaries of any such Person(s)
to the extent the same control Tenant and would be deemed an Affiliate of Tenant, and (ii) Person(s) that controls, directly or
indirectly (including through one or more intermediaries), any other Controlling Person(s) and which would be deemed an Affiliate
of any such Controlling Person(s).

 

    	 	- 3 -	 

     

    

 

Coverage Requirement.
A minimum EBITDARM/Rent ratio from Tenant operations of 2:1.

 

CPI Increase: The
percentage increase from (a) the CPI in effect two months prior to the Commencement Date; to (b) the CPI in effect two months
prior to the applicable anniversary of the Commencement Date. “CPI” shall mean the monthly index of the “All
Items” Consumer Price Index for Urban Consumers, 1982-84=100, compiled by the U.S. Department of Labor, Bureau of Labor
Statistics. If at the time of such computation no CPI is compiled and published by any agency of the federal government, then
the statistics reflecting cost of living increases for the periods specified above, as compiled by an institution, organization
or individual generally recognized as an authority by financial and insurance institutions, shall be used as a basis for such
computations.

 

Date of Taking:
The date the Condemnor has the right to possession of the property being condemned.

 

EBITDARM. 
For any period, NOI, adjusted to add thereto, to the extent allocable to the Premises, without duplication, (i) interest
expense; (ii) income tax expense; (iii) depreciation and amortization expense; (iv) rental expense; and (v) management
fee expenses, in each case determined in accordance with GAAP, to the extent applicable;

 

Environmental Costs:
As defined in Section 37.4.

 

Environmental Laws:
Any and all federal, state, municipal and local laws, statutes, ordinances, rules, regulations, guidances, policies, orders, decrees
and/or judgments, whether statutory or common law, as amended from time to time, now or hereafter in effect, or promulgated, pertaining
to the environment, public health and safety and industrial hygiene, including the use, generation, manufacture, production, storage,
release, discharge, disposal, handling, treatment, removal, decontamination, clean-up, transportation or regulation of any Hazardous
Substance, including the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Comprehensive Environmental
Response Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal Insecticide, Fungicide, and Rodenticide
Act, the Safe Drinking Water Act and the Occupational Safety and Health Act.

 

Event of Default:
As defined in Section 16.1.

 

Extended Term(s):
Two (2) consecutive terms of ten (10) years each.

 

    	 	- 4 -	 

     

    

 

Fair Market Value:
The fair market value of the Premises, or applicable portion(s) thereof, determined in accordance with the appraisal procedures
set forth in Section 34 and this definition. Fair Market Value shall be obtained by assuming that the Premises, or applicable
portion(s) thereof, are unencumbered by this Lease. Fair Market Value shall also be the higher value obtained by valuing the Premises,
or applicable portion(s) thereof, for their highest and best use or as a fully-permitted facility operated in accordance with
the provisions of this Lease. In addition, the negative value of (i) any deferred maintenance or other items of repair or replacement
of the Premises; (ii) any then current or prior licensure or certification violations and/or admissions holds; and (iii) any other
breach or failure of Tenant to perform or observe its obligations hereunder, shall not be taken into account in determining Fair
Market Value; rather, the Premises shall be deemed to be in the condition required by this Lease (i.e., reasonably good order
and repair) and Tenant shall at all times be deemed to have operated the Premises in compliance with and to have performed all
obligations of the Tenant under this Lease.

 

Fiscal Year: Tenant’s
Fiscal Year, which now ends December 31 in each calendar year, with the new Fiscal Year beginning on the following January 1.
If Tenant changes its Fiscal Year at any time during the Term, Tenant shall promptly give Landlord notice specifying such change.
If any such change is made, all reporting and accounting procedures set forth in this Lease shall continue to be made in accordance
with GAAP. Any appropriate adjustments to such procedures as a result of such change shall be made upon the mutual consent of
Landlord and Tenant. No such change or adjustment shall alter the Term, and Tenant shall bear any accounting costs reasonably
incurred by Landlord as a result of any such change or adjustment.

 

Fixed Term: The
period of time commencing on the Commencement Date and ending at 11:59 p.m. where the Premises are located on the expiration of
the tenth (10th) Lease Year.

 

Fixtures: As defined
in Section 1.1(d).

 

GAAP: Generally
accepted accounting principles consistently applied.

 

Guarantor: Surgical
Management Professionals, LLC, a South Dakota limited liability company.

 

Guaranty: The Guaranty
of even date herewith executed by Guarantor.

 

Handling: As defined
in Section 37.4.

 

Hazardous Substances:
Collectively, any medical waste, petroleum, petroleum product or byproduct or any substance, material or waste regulated or listed
pursuant to any Environmental Law.

 

    	 	- 5 -	 

     

    

 

Impositions: Collectively,
all taxes, including capital stock, franchise and other state taxes, ad valorem, sales, use, single business, gross receipts,
transaction privilege, rent or similar taxes; assessments including assessments for public improvements or benefits, whether or
not commenced or completed prior to the date hereof and whether or not to be completed within the Term; ground rents; water, sewer
and other utility levies and charges; excise tax levies; fees including license, permit, inspection, authorization and similar
fees; and all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen,
of every character in respect of the Premises and/or the Rent and all interest and penalties thereon attributable to any failure
in payment by Tenant which at any time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect
of or be a lien upon (i) Landlord or Landlord’s interest in the Premises, (ii) the Premises or any parts thereof or any
rent therefrom or any estate, right, title or interest therein, or (iii) any occupancy, operation, use or possession of, or sales
from or activity conducted on or in connection with the Premises or the leasing or use of the Premises or any parts thereof; provided,
however, that the following shall be expressly excluded from the definition of “Impositions”: (1) any tax based on
net income (whether denominated as a franchise or capital stock or other tax) imposed on Landlord, (2) any tax imposed with respect
to the sale, exchange or other disposition by Landlord of the Premises or the proceeds thereof, (3) any recording taxes, indebtedness
taxes or other taxes imposed with respect to or in connection with any of the Mortgages, and (4) any principal or interest
on any indebtedness on the Premises for which Landlord is the obligor, except to the extent that any tax, assessment, tax levy
or charge, of the type described in any of clauses (1), (2) or (3) above is levied, assessed or imposed in lieu of or as or as
a substitute for any tax, assessment, levy or charge which is otherwise included in this definition of an “Imposition.”

 

Insurance Requirement:
The terms of any insurance policy required by this Lease and all requirements of the issuer of any such policy and of any insurance
board, association, organization or company necessary for the maintenance of any such policy.

 

Intangible Property:
All accounts, proceeds of accounts, rents, profits, income or revenues derived from the use of rooms or other space within the
Premises or the providing of services in or from the Premises; documents, chattel paper, instruments, contract rights, deposit
accounts, general intangibles, commercial tort claims and causes of action, now owned or hereafter acquired by Tenant (including
any right to any refund of any Impositions) arising from or in connection with Tenant’s operation or use of the Premises;
all licenses and permits now owned or hereinafter acquired by Tenant which are necessary or desirable for Tenant’s use of
the Premises for the Primary Intended Use, including, if applicable, any certificate of need or similar certificate; the right
to use any trade name or other name associated with the Premises; and any and all third-party provider agreements (including Medicare
and Medicaid, if applicable),

 

Investment Amount:
The sum of Acquisition Price, plus all Capital Addition Costs funded by Landlord, if any.

 

Land: As defined
in Section 1.1(a).

 

Lease: As defined
in the preamble.

 

Lease Year: Each
period of twelve (12) full calendar months from and after the Commencement Date, unless the Commencement Date is a day other than
the first (1st) day of a calendar month, in which case the first Lease Year shall be the period commencing on the Commencement
Date and ending on the last day of the twelfth (12th) month following the month in which the Commencement Date occurs and each
subsequent Lease Year shall be each period of twelve (12) full calendar months after the last day of the prior Lease Year; provided,
however, that the last Lease Year during the Term may be a period of less than twelve (12) full calendar months and shall end
on the last day of the Term.

 

Leased Improvements:
As defined in Section 1.1(b).

 

    	 	- 6 -	 

     

    

 

Legal Requirements:
(i) All federal, state, county, municipal and other governmental statutes, laws (including common law and Environmental Laws),
rules, policies, guidance, codes, orders, regulations, ordinances, permits, licenses, covenants, conditions, restrictions, judgments,
decrees and injunctions, including those affecting the Premises, Tenant’s Personal Property or the construction, use or
alteration thereof, whether now or hereafter enacted and in force, including any which may (1) require repairs, modifications
or alterations in or to the Premises and all Tenant’s Personal Property, (2) in any way adversely affect the use and enjoyment
thereof, or (3) regulate the transport, handling, use, storage or disposal or require the cleanup or other treatment of any Hazardous
Substance, and (ii) all covenants, agreements, restrictions, and encumbrances either now or hereafter of record or known to Tenant
(other than encumbrances created by Landlord without the consent of Tenant except as otherwise expressly permitted hereunder)
affecting the Premises.

 

Landlord: As defined
in the preamble.

 

Landlord’s Personal
Property: As defined in Section 1.1(e)

 

Letter of Credit Requirements:
As defined in Section 21.3.

 

Minimum Net Worth:
Three Hundred Thousand Dollars ($300,000.00), consisting of any combination of demonstrable fungible and fixed assets, including
without limitation impounds and reserves required by Landlord and the Rent Reserve Fund, all as determined in accordance with
GAAP.

 

Minimum Rent: The
amount of minimum rent as determined pursuant to Section 3.1.

 

Minimum Required Liquidity:
Six (6) months of Minimum Rent.

 

Mortgage: As defined
in Section 13.1.

 

Mortgagee: As defined
in Section 13.1.

 

Mortgage Documents:
With respect to each Mortgage and Mortgagee, the applicable Mortgage, loan or credit agreement, lease, note, collateral assignment
instruments, guarantees, indemnity agreements and other documents or instruments evidencing, securing or otherwise relating to
the loan made, credit extended, lease or other financing vehicle pursuant thereto.

 

Mortgage Reserve Account:
As defined in Section 36.3.2.

 

NOI: The total
revenues of the Premises for a given period less all operating expenses of the Premises for such period. For purposes of this
definition, the term “operating expenses” shall not include depreciation, amortization, impairments or interest expense.

 

Occupancy Arrangement:
Any sublease, license or other arrangement with a Person for the right to use, occupy or possess any portion of the Premises.

 

Occupant: Any Person
having rights of use, occupancy or possession under an Occupancy Arrangement.

 

    	 	- 7 -	 

     

    

 

Officer’s Certificate:
A certificate of Tenant signed by an officer duly authorized to so sign on Tenant’s behalf.

 

Payment Date: Any
due date for the payment of the installments of Minimum Rent or any other sums payable under this Lease.

 

Person: Any individual,
corporation, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other form of entity.

 

Personal Property:
All machinery, furniture and equipment, including phone systems and computers, trade fixtures, inventory (including raw materials,
work in process and finished goods), supplies and other personal property used or useful in the use of the Premises for their
Primary Intended Use, other than Fixtures.

 

Premises: As defined
in Section 1.1.

 

Primary Intended Use:
The operation of an outpatient surgery center and such other uses necessary or incidental to such use.

 

Purchase Contract:
That certain Asset Purchase Agreement dated [_______, 2015], by and between [Cherry Hills Real Estate, LLC] and
Landlord’s Affiliate.

 

Quarter: During
each applicable Fiscal Year, the first three (3) calendar month period commencing on the first (1st) day of such Fiscal Year and
each subsequent three (3) calendar month period within such Fiscal Year

 

Related Rights:
As defined in Section 1.1(c).

 

Rent: Collectively,
Minimum Rent, Additional Charges and all other amounts payable under this Lease.

 

Rent Reserve Fund:
As defined in Section 21.2.

 

Seller Note. A
promissory note made by [Cherry Hills Real Estate, LLC] in favor of Tenant, as holder in an amount equal to twelve (12) times
the rent payable by AIU current Sub-Lessee, Affiliates in Urology (“AIU”) under its lease for December 2021
(the “AIU December 2021 Rent”).

 

State: The State
or Commonwealth in which the Premises are located.

 

Subsidiaries: Corporations,
partnerships, limited liability companies, business trusts or other legal entities with respect to which a Person owns, directly
or indirectly (including through one or more intermediaries), more than fifty percent (50%) of the voting stock or partnership,
membership or other equity interest, respectively.

 

Tenant: As defined
in the preamble.

 

    	 	- 8 -	 

     

    

 

Tenant’s Personal
Property: The Personal Property other than Landlord’s Personal Property.

 

Term: The Fixed
Term and any Extended Terms, unless earlier terminated pursuant to the provisions hereof.

 

Unsuitable for Its
Primary Intended Use: A state or condition of the Premises such that by reason of Condemnation, in the good faith judgment
of Landlord and Tenant, the Premises cannot be operated on a commercially practicable basis for the Primary Intended Use.

 

SECTION
3

 

3.1          Rent.

 

3.1.1           Method
and Timing of Payment. Tenant shall pay to Landlord in lawful money of the United States of America which shall be legal tender
for the payment of public and private debts, without offset or deduction, the amounts set forth hereinafter as Minimum Rent during
the Term. Payments of Minimum Rent shall be made by wire transfer of funds initiated by Tenant to Landlord’s account or
to such other Person as Landlord from time to time may designate in writing. For the entire Fixed Term and each Extended Term,
Tenant shall pay to Landlord Minimum Rent monthly, in advance, on or before the first (1st) day of each calendar month. The first
monthly payment of Minimum Rent shall be payable on the Commencement Date (prorated as to any partial calendar month at the beginning
of the Term).

 

3.1.2           Minimum
Rent for First Lease Year. For the period from the Commencement Date and through and including the expiration of the first
(1st) Lease Year, monthly “Minimum Rent” shall initially be in an amount equal to Three Hundred Eighty Thousand
and No/100 Dollars ($ 380,000.00), which is based on eight percent (8%) of the Acquisition Price. The Minimum Rent shall
be increased by the same percentage of any Capital Addition Costs funded by Landlord, if any.

 

3.1.3           Minimum
Rent Increases during Fixed Term. At the commencement of the second (2nd) Lease Year of the Fixed Term and at the
commencement of each successive Lease Year thereafter during the Fixed Term, the monthly Minimum Rent shall increase to an amount
equal to one hundred two and one-half percent (102.5%) of the Minimum Rent payable during the last full month of the previous
Lease Year.

 

3.1.4           Minimum
Rent during Extended Terms. At the commencement of each Lease Year during the Extended Term, monthly Minimum Rent shall be
adjusted to an amount equal to the Fair Market Rent, as provided in Section 19.2.

 

3.2          Additional
Charges. In addition to the Minimum Rent, (i) Tenant shall also pay and discharge as and when due and payable all other amounts,
liabilities, obligations and Impositions which Tenant assumes or agrees to pay under this Lease; and (ii) in the event of any
failure on the part of Tenant to pay any of those items referred to in clause (i) above, Tenant shall also promptly pay and discharge
every fine, penalty, interest and cost which may be added for non-payment or late payment of such items (the items referred to
in clauses (i) and (ii) above being referred to herein collectively as the “Additional Charges”), and Landlord shall
have the same remedies in the case of non-payment of the Additional Charges as in the case of non-payment of the Minimum Rent.

 

    	 	- 9 -	 

     

    

 

3.3          Late
Payment of Rent. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to incur costs
not contemplated hereunder, the amount of which will be difficult to ascertain. Accordingly, if any installment of Rent shall
not be paid within five (5) days after its due date, Tenant will pay Landlord on demand a late charge equal to the lesser of (i)
five percent (5%) of the amount of such installment per month until paid, or (ii) the maximum amount permitted by law. The
parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason
of late payment by Tenant. The parties further agree that such late charge is rent and not interest and such assessment does not
constitute a lender or borrower/creditor relationship between Landlord and Tenant. In addition, the amount unpaid, including any
late charges, shall bear interest at the Overdue Rate compounded monthly from the due date of such installment to the date of
payment thereof, and Tenant shall pay such interest to Landlord on demand. The payment of such late charge or such interest shall
not constitute waiver of, nor excuse or cure, any default under this Lease, nor prevent Landlord from exercising any other rights
and remedies available to Landlord.

 

3.4          Net
Lease. This Lease is and is intended to be what is commonly referred to as a “net, net, net” or “triple
net” lease. The Rent shall be paid absolutely net to Landlord, so that this Lease shall yield to Landlord the full amount
or benefit (as applicable) of the installments of Minimum Rent and Additional Charges throughout the Term.

 

SECTION
4

 

4.1          Impositions.

 

4.1.1           Subject
to Section 12.1 relating to permitted contests, Tenant shall pay, or cause to be paid, all Impositions before any fine, penalty,
interest or cost may be added for nonpayment. Subject to Section 4.4 below, Tenant shall make such payments directly to the taxing
authorities where feasible, and promptly furnish to Landlord copies of official receipts or other satisfactory proof evidencing
such payments.

 

4.1.2           Landlord
shall prepare and file all tax returns and reports as may be required by Legal Requirements with respect to Landlord’s net
income, gross receipts, franchise taxes and taxes on its capital stock, and Tenant shall prepare and file all other tax returns
and reports as may be required by Legal Requirements with respect to or relating to the Premises and Tenant’s Personal Property.

 

4.1.3           Landlord
and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the request is made with
respect to the Premises as may be necessary to prepare any required returns and reports to taxing authorities. If any property
covered by this Lease is classified as personal property for tax purposes, Tenant shall file all personal property tax returns
in such jurisdictions where it must legally so file. Landlord, to the extent it possesses the same, and Tenant, to the extent
it possesses the same, shall provide the other party, upon request, with cost and depreciation records necessary for filing returns
for any property so classified as personal property. Where Landlord is legally required to file personal property tax returns
and to the extent practicable, Tenant shall be provided with copies of assessment notices indicating a value in excess of the
reported value in sufficient time for Tenant to file a protest.

 

    	 	- 10 -	 

     

    

 

4.1.4           Subject
to the conditions set forth in Section 12.1, Tenant may, upon notice to Landlord, at Tenant’s option and at Tenant’s
sole cost and expense, protest, appeal, or institute such other proceedings as Tenant may deem appropriate to effect a reduction
of real estate or personal property assessments and Landlord, at Tenant’s expense as aforesaid, shall reasonably cooperate
with Tenant in such protest, appeal, or other action but at no cost or expense to Landlord. Billings for reimbursement by Tenant
to Landlord of personal property or real property taxes shall be accompanied by copies of a bill therefor and payments thereof
which identify the personal property or real property with respect to which such payments are made. Any refund due from any taxing
authority in respect of any Imposition paid by Tenant shall be paid over to Tenant if no Event of Default shall have occurred
and be continuing hereunder. Any other refund shall be paid over to, or retained by, Landlord and applied to the payment of Tenant’s
obligations under this Lease in such order of priority as Landlord shall determine.

 

4.1.5           Landlord
shall give prompt notice to Tenant of all Impositions payable by Tenant hereunder of which Landlord has actual knowledge, but
Landlord’s failure to give any such notice shall in no way diminish Tenant’s obligations hereunder to pay such Impositions.

 

4.1.6           Impositions
imposed or assessed in respect of the tax-fiscal period during which the Term commences or terminates shall be adjusted and prorated
between Landlord and Tenant, whether or not such Imposition is imposed or assessed before or after such commencement or termination,
and Tenant’s obligation to pay its prorated share thereof shall survive termination of this Lease.

 

4.2           Utility
Charges. Tenant shall pay or cause to be paid all charges for electricity, power, gas, oil, water and other utilities used
in the Premises. Tenant shall also pay or reimburse Landlord for all costs and expenses of any kind whatsoever which at any time
with respect to the Term hereof may be imposed against Landlord, Tenant and/or the Premises by reason of any of the easements,
covenants, conditions and/or restrictions affecting or benefiting the Premises and/or any part(s) thereof, or with respect to
easements, licenses or other rights over, across or with respect to any adjacent or other property which benefits the Premises,
including any and all costs and expenses associated with any utility, drainage and parking easements.

 

4.3           Insurance
Premiums. Tenant shall pay or cause to be paid all premiums for the insurance coverage required to be maintained by Tenant
hereunder.

 

    	 	- 11 -	 

     

    

 

4.4           Impound
Account. Notwithstanding any provision of this Lease to the contrary, during the Term, Tenant shall deposit, at the time each
payment of Minimum Rent is due by Tenant under this Lease, an amount equal to one-twelfth of (a) Tenant’s estimated annual
Impositions relating to real estate and personal property taxes, of every kind and nature, required pursuant to Section 4.1, and
(b) the estimated amount of insurance premiums required to procure the insurance coverage required to be maintained by Tenant
pursuant to Section 13 below, into an impound account as directed by Landlord. The estimated amounts described in clauses (a)
and (b) of the preceding sentence shall be established by Landlord in its reasonable discretion and may be adjusted from time
to time by Landlord in its reasonable discretion. The cost of administering such impound account shall be paid by Tenant. At the
time any payment of Impositions and/or insurance premiums for the insurance coverages required pursuant to Section 13 below
is due, and upon request by Tenant, accompanied by copies of all tax bills, invoices or other evidence reasonably satisfactory
to Landlord of the amounts so due, Landlord shall apply funds on deposit with Landlord in such impound account to the appropriate
amount due to the appropriate taxing authority and/or insurance provider: provided, however, that (i) Landlord shall have
no obligation to deliver funds in excess of the total amount of funds held in such account, and (ii) upon the occurrence of an
Event of Default, Landlord shall not be obligated to make such payments, but may instead apply such funds to payment of Tenant’s
other obligations under this Lease in such order as Landlord may determine. On the Commencement Date, Tenant shall deposit with
Landlord such amounts, when considered with the monthly payments to be made by Tenant pursuant to this Section, as may reasonably
be required to pay the full amount of such Impositions and insurance premiums at the time(s) the same become next due, all as
reasonably determined by Landlord. No amount deposited with Landlord or into an impound account established pursuant to this Section
shall be or be deemed to be escrow or trust funds, and at Landlord’s option and in Landlord’s discretion, any amounts
deposited with Landlord may either be held in a separate account or be commingled by Landlord with the general funds of Landlord.
Tenant shall not be entitled to interest on funds deposited with Landlord or contained in any impound account established pursuant
to this Section. Any amounts deposited with Landlord or contained in any impound account established pursuant to this Section
shall be solely for the protection of Landlord and the Premises and entail no responsibility on Landlord’s part beyond the
application of such amounts as provided above. In the event of a transfer of Landlord’s interest in the Premises or an assignment
of Landlord’s interest in this Lease, Landlord shall have the right to transfer to the transferee the amounts deposited
by Tenant with Landlord or in any impound account established by Landlord pursuant to this Section and thereupon shall, without
any further agreement between the parties, be released by Tenant from all liability therefor, and it is agreed that the provisions
hereof shall apply to every transfer or assignment of such amounts to such a transferee/assignee. The amounts deposited by Tenant
with Landlord or in any impound account established by Landlord pursuant to this Section may also be assigned as security in connection
with a Mortgage. Nothing contained in this Section shall be deemed to affect any right or remedy of Landlord hereunder.

 

SECTION
5

 

5.1           No
Termination, Abatement, etc. Except as otherwise specifically provided in this Lease, Tenant shall remain bound by this Lease
in accordance with its terms and shall not seek or be entitled to any abatement, deduction, deferment or reduction of Rent, or
set-off against the Rent. Except as expressly set forth in this Lease, the respective obligations of Landlord and Tenant shall
not be affected by reason of damage to or destruction of the Premises, Condemnation of the Premises, any claim that Tenant has
or might have against Landlord, or any bankruptcy, insolvency, reorganization or other proceedings affecting Landlord or any assignee
or transferee of Landlord, or for any other cause, whether similar or dissimilar to any of the foregoing, other than a discharge
of Tenant from any such obligations as a matter of law. Tenant hereby specifically waives all rights arising from any occurrence
whatsoever that may now or hereafter be conferred upon it by law (a) to modify, surrender or terminate this Lease or quit or surrender
the Premises and/or any part(s) thereof; or (b) which may entitle Tenant to any abatement, reduction, suspension or deferment
of the Rent or other sums payable by Tenant hereunder, except as otherwise specifically provided in this Lease. The obligations
of Landlord and Tenant hereunder shall be separate and independent covenants and agreements and the Rent and all other sums payable
by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be terminated pursuant
to the express provisions of this Lease or by any termination of this Lease other than by reason of an Event of Default.

 

    	 	- 12 -	 

     

    

 

SECTION
6

 

6.1           Ownership
of the Premises. Tenant acknowledges that the Premises are the property of Landlord and that Tenant has only the right to
the exclusive possession and use of the Premises upon the terms and conditions of this Lease. Upon the expiration or earlier termination
of this Lease, Tenant shall, at its expense, repair and restore the Premises to the condition required by Section 9.1.4.

 

6.2           Personal
Property. During the Term, Tenant shall, as necessary and at its expense, install, affix or assemble or place on any parcels
of the Land or in any of the Leased Improvements, any items of Tenant’s Personal Property and replacements thereof which
shall be the property of and owned by Tenant. Except as provided in Sections 6.3 and 16.7, Landlord shall have no rights to Tenant’s
Personal Property during the Term. Tenant shall provide and maintain during the entire Term all Personal Property necessary in
order to operate the Premises in compliance with all licensure and certification requirements, all Legal Requirements and all
Insurance Requirements and otherwise in accordance with customary practice in the industry for the Primary Intended Use. In addition,
Tenant shall be required to replace, modify, alter or substitute any of Landlord’s Personal Property that has become obsolete
or worn out with personal property of equal or better quality. Any such replacements, modifications, alterations or substitutions
(whether or not upgrades thereof) shall become Landlord’s Personal Property.

 

6.3           Transfer
of Personal Property and Capital Additions to Landlord. Upon the expiration or earlier termination of this Lease (unless such
termination is the result of Tenant’s purchase of the Premises), all Capital Additions not owned by Landlord and all of
Tenant’s Personal Property (including all motor vehicles (if any) owned by Tenant used to transport patients) shall become
the property of Landlord, free of any encumbrance, and Tenant shall execute all documents and take any actions reasonably necessary
to evidence such ownership and discharge any encumbrance. Notwithstanding anything to the contrary in this Lease, upon the expiration
or earlier termination of this Lease, Landlord shall not be obligated to reimburse Tenant for any replacements, rebuildings, alterations,
additions, substitutions, and/or improvements that are surrendered as part of or with the Premises.

 

    	 	- 13 -	 

     

    

 

SECTION
7

 

7.1          Condition
of the Premises. Tenant acknowledges that it has been managing or operating the Premises and has knowledge of the condition
of the Premises. Tenant is leasing the Premises “AS IS” in its present condition. Tenant waives any claim or action
against Landlord in respect of the condition of the Premises including any defects or adverse conditions not discovered or otherwise
known by Tenant as of the date hereof. LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE PREMISES
OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, OR
AS TO THE NATURE OR QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, OR THE EXISTENCE OF ANY HAZARDOUS SUBSTANCE, IT BEING AGREED
THAT ALL SUCH RISKS, LATENT OR PATENT, ARE TO BE BORNE SOLELY BY TENANT INCLUDING ALL RESPONSIBILITY AND LIABILITY FOR ANY ENVIRONMENTAL
REMEDIATION AND COMPLIANCE WITH ALL ENVIRONMENTAL LAWS.

 

7.2          Use
of the Premises.

 

7.2.1           Tenant
covenants that it will obtain and maintain all authorizations and approvals needed to use and operate the Premises for such the
Primary Intended Use and any other use conducted on the Premises as may be permitted from time to time hereunder in accordance
with Legal Requirements including applicable licenses, provider agreements, permits, and Medicare and/or Medicaid certification
(if applicable).

 

7.2.2           Tenant
shall use or cause to be used the Premises and the improvements thereon for the Primary Intended Use. Tenant shall not use the
Premises or any part(s) thereof for any other use without the prior written consent of Landlord.

 

7.2.3           Tenant
shall operate continuously the entire Premises in accordance with the Primary Intended Use. Tenant shall devote the entirety of
the Premises to the Primary Intended Use, except for areas reasonably required for office, storage space or ancillary service
uses incidental to the Primary Intended Use. Tenant shall not modify the services offered or take any other action (e.g., removing
patients or directing patients, or prospective patients, to another facility) if such modification of services or the taking of
such action would materially reduce gross revenues from the Premises or the Fair Market Value of the Premises. Tenant shall at
all times maintain an adequate staff for the service of its patients, in each case assuming an occupancy and/or use level that
is not less than the average occupancy and/or use level for similar facilities in the State. Tenant shall employ its best judgment,
efforts and abilities to operate the entirety of the Premises in such a manner so as to enhance the reputation and attractiveness
of the Premises.

 

7.2.4           Tenant
shall conduct its business at the Premises in conformity with the highest standards of patient care practice provided in
similar facilities in the State.

 

7.2.5           Tenant
shall not commit or suffer to be committed any waste on the Premises or cause or permit any nuisance to exist thereon or with
respect thereto.

 

7.2.6           Tenant
shall neither suffer nor permit the Premises or any part(s) thereof, or Tenant’s Personal Property, to be used in such a
manner as (a) might reasonably tend to impair Landlord’s title thereto or to any portion thereof or (b) may make possible
a claim of adverse use or possession, or an implied dedication of the Premises or any part(s) thereof.

 

    	 	- 14 -	 

     

    

 

7.2.7           Tenant
shall not commit or suffer to be committed any waste on the Premises or cause or permit any nuisance to exist thereon or with
respect thereto.

 

7.2.8           There
shall be no change in the holder of any license for the Premises without Landlord’s prior written consent, which consent
may be given or withheld in Landlord’s sole and absolute discretion.

 

7.3          Landlord
to Grant Easements. etc. Landlord shall, from time to time so long as no Event of Default has occurred and is continuing,
at the request of Tenant and at Tenant’s cost and expense, but subject to the approval of Landlord, (a) grant easements
and other rights in the nature of easements; and (b) release existing easements or other rights in the nature of easements which
are for the benefit of the Premises. Except as set forth in Section 36.1 with respect to granting Mortgages, or unless otherwise
requested by Tenant, Landlord shall not grant any easements or impose any covenants, conditions or restrictions on the Premises
without Tenant’s consent, which consent shall not be unreasonably withheld.

 

7.4          Preservation
of Value. Tenant acknowledges that a fair return to Landlord on its investment in the Premises is dependent, in part, on the
concentration on the Premises during the Term of the core community business of Tenant and its Affiliates in the geographical
area of the Premises. Tenant further acknowledges that diversion of patients, from the Premises to other facilities or institutions
and/or reemployment by Tenant of management or supervisory personnel working at the Premises following the expiration or earlier
termination of this Lease at other facilities or institutions owned, operated or managed, whether directly or indirectly, by Tenant
or its Affiliates could have a material adverse impact on the value and utility of the Premises. Accordingly, Landlord and Tenant
agree as follows:

 

7.4.1           During
the Term and for a period of one (1) year thereafter, neither Tenant nor any of its Affiliates, directly or indirectly, shall
operate, own, manage or have any interest in or otherwise participate in or receive revenues from any other facility or institution
providing services or goods similar to those provided in connection with the Premises and its Primary Intended Use, within a fifty
(50) mile radius outward from the outside boundary of the Premises. All distances shall be measured on a straight line rather
than on a driving distance basis. In the event that any portion of such other facility or institution is located within such restricted
area the entire facility or institution shall be deemed located within such restricted area.

 

7.4.2           
For a period of two (2) years following any termination of this Lease for an Event of Default by Tenant, neither Tenant
nor any of its Affiliates shall hire, engage or otherwise employ any management or supervisory personnel working solely on or
solely in connection with the Premises.

 

    	 	- 15 -	 

     

    

 

SECTION
8

 

8.1          Compliance
with Legal and Insurance Requirements, Instruments, etc. Subject to Section 12.1 regarding permitted contests, Tenant, at
its expense, shall at all times (a) comply with all Legal Requirements and Insurance Requirements regarding the use, operation,
maintenance, repair and restoration of the Premises and Tenant’s Personal Property, whether or not compliance therewith
may require structural changes in any of the Leased Improvements; and (b) procure, maintain and comply with all licenses, certificates
of need, provider agreements and other authorizations required for the use of the Premises and Tenant’s Personal Property
for the applicable Primary Intended Use and for the proper erection, installation, operation and maintenance of the Premises and
Tenant’s Personal Property. If, after thirty (30) days of receiving notice from Landlord, Tenant fails to comply with the
provisions of this Section, Landlord may, but shall not be obligated to, enter upon the Premises and make all Capital Additions
and take such actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its interest
in the Premises, and Tenant shall reimburse Landlord for all costs and expenses incurred by Landlord in connection with such actions.
Tenant covenants and agrees that none of the Premises, Tenant’s Personal Property or any Capital Additions shall be used
for any unlawful purpose.

 

SECTION
9

 

9.1          Maintenance
and Repair.

 

9.1.1           Tenant,
at its expense, shall maintain the Premises and the Tenant’s Personal Property in good order and repair, and, with reasonable
promptness, make all necessary and appropriate repairs thereto of every kind and nature, whether interior or exterior, structural
or non-structural, ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior to the
Commencement Date. All repairs shall be at least equivalent in quality to the original work. Tenant will not take or omit to take
any action the taking or omission of which might impair the value or the usefulness of the Premises for the Primary Intended Use.

 

9.1.2           Landlord
shall not under any circumstances be required to (a) build or rebuild any improvements on the Premises; (b) make any repairs,
replacements, alterations, restorations or renewals of any nature to the Premises, whether ordinary or extraordinary, structural
or non-structural, foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto; or (c) maintain the Premises
in any way. Tenant hereby waives, to the extent permitted by law, the right to make repairs at the expense of Landlord pursuant
to any law in effect at the time of the execution of this Lease or hereafter enacted.

 

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

 

9.1.4           Unless
Landlord shall convey any of the Premises to Tenant pursuant to the provisions of this Lease, Tenant shall, upon the expiration
or earlier termination of the Term, vacate and surrender the Premises and the Tenant’s Personal Property to Landlord in
the condition in which the Premises was originally received from Landlord or (if applicable) were originally introduced to the
Premises, except as repaired, rebuilt, restored, altered or added to as permitted or required by the provisions of this Lease
and except for ordinary wear and tear.

 

    	 	- 16 -	 

     

    

 

9.2           Encroachments;
Restrictions. Tenant shall take all steps necessary to cause the Leased Improvements to not encroach upon any property, street,
right-of-way, easement or set-back line, or to not violate any restrictive covenant or other agreement affecting the Premises.

 

SECTION
10

 

10.1         Construction
of Capital Additions and Other Alterations to the Premises. Without the prior written consent of Landlord, Tenant shall not
(a) make any Capital Additions on or structural alterations to the Premises; (b) enlarge or reduce the size of the Premises or
otherwise materially alter or affect (other than repair and replacement thereof) any main building systems, including any main
plumbing, electrical or heating, ventilating and air conditioning systems; or (c) make any Capital Additions or other alterations
which would tie in or connect with any improvements on property adjacent to the Land. Tenant may, without Landlord’s prior
written consent, make any alterations, additions, or improvements (collectively, “alterations”) to the Premises if
such alterations are not of the type described in either clause (a), (b) or (c) above, so long as in each case: (i) the same do
not (A) decrease the value of the Premises, (B) affect the exterior appearance of the Premises, or (C) adversely affect the structural
components of the Leased Improvements or the main electrical, mechanical, plumbing or ventilating and air conditioning systems;
(ii) the same are consistent or better in terms of style, quality and workmanship to the original Leased Improvements and Fixtures;
(iii) the same are constructed and performed in accordance with the provisions of this Section; and (iv) the cost thereof does
not exceed, in the aggregate, $100,000 for any twelve (12) month period. Any alterations (other than alterations described in
clauses (a), (b) or (c) above, and other than alterations which meet the foregoing requirements of clauses (i), (ii), and (iii)
and (iv) above) shall be subject to Landlord’s prior written consent, which consent shall not be unreasonably withheld.
To the extent Landlord’s prior written consent shall be required in connection with any alterations or Capital Additions,
Landlord may impose such conditions thereon in connection with its approval thereof as Landlord in its sole but reasonable judgment
deems appropriate. Notwithstanding the foregoing, Landlord agrees that painting, landscaping, and replacement of floor, wall and
window coverings shall be deemed alterations which do not require Landlord’s consent, regardless of the cost thereof, so
long as the same meet the requirements of clauses (ii) and (iii) above. With respect to any Capital Additions or alterations permitted
hereunder, (A) all work done in connection with such construction shall be done promptly and in a good and workmanlike manner
using first-class materials and in conformity with all Legal Requirements; (B) promptly following the completion of such construction,
Tenant shall deliver to Landlord “as built” drawings of such addition, certified as accurate by the licensed architect
or engineer selected by Tenant to supervise such work; and (C) if by reason of the construction thereof, a new or revised Certificate
of Occupancy for any component of the Premises is required, Tenant shall obtain and furnish a copy of the same to Landlord promptly
upon completion thereof.

 

    	 	- 17 -	 

     

    

 

SECTION
11

 

11.1         Liens.
Subject to the provisions of Section 12.1 relating to permitted contests, Tenant will not directly or indirectly create or allow
to remain and will promptly discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon
the Premises, excluding, however, the matters that exist as of the Commencement Date.

 

SECTION
12

 

12.1         Permitted
Contests. Tenant, upon prior written notice to Landlord, on its own or in Landlord’s name, at Tenant’s expense,
may contest, by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity or application,
in whole or in part, of any licensure or certification decision, Imposition, Legal Requirement, Insurance Requirement, lien, attachment,
levy, encumbrance, charge or claim; subject, however, to the further requirement that (a) the commencement and continuation of
such proceedings shall suspend the collection thereof from Landlord and from the Premises; (b) neither the Premises nor the Rent
therefrom nor any part or interest in either thereof would be in any danger of being sold, forfeited, attached or lost pending
the outcome of such proceedings; (c) neither Landlord nor Tenant would be in any danger of civil or criminal liability for failure
to comply therewith pending the outcome of such proceedings; and (d) Tenant shall give such reasonable security as may be required
by Landlord to insure ultimate payment of the same and to prevent any sale or forfeiture of the Premises or the Rent by reason
of such nonpayment or noncompliance. If any such contest is finally resolved against Landlord or Tenant, Tenant shall promptly
pay the amount required to be paid, together with all interest and penalties accrued thereon, or comply with the applicable Legal
Requirement or Insurance Requirement. Tenant shall indemnify, defend, protect and save Landlord harmless from and against any
liability, cost or expense of any kind that may be imposed upon Landlord in connection with any such contest and any loss resulting
therefrom.

 

SECTION
13

 

13.1         General
Insurance Requirements. During the Term, Tenant shall at all times keep the Premises, and all property located in or on the
Premises, including all Capital Additions, the Fixtures and the Personal Property, insured with the kinds and amounts of insurance
described below. Each element of the insurance described in this Section shall be maintained with respect to the Premises and
the Personal Property and operations thereon. This insurance shall be written by companies authorized to do insurance business
in the State in which the Premises is located. All liability type policies (a) must name Landlord as an “additional insured”
and (b) shall be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord shall be
excess and non-contributing with any insurance required of Tenant. All property, loss of rental and business interruption type
policies shall name Landlord as “loss payee.” Losses shall be payable to Landlord and/or Tenant as provided in Section
14. In addition, the policies, as appropriate, shall name as an “additional insured” or “loss payee” the
holder of any mortgage, deed of trust or other security agreement (“Mortgagee”) securing any indebtedness or
any other encumbrance placed on any Premises in accordance with the provisions of Section 36.3.1 (“Mortgage”)
by way of a standard form of mortgagee’s loss payable endorsement; provided that Landlord delivers the name and address
of any such Mortgagee to Tenant. Any loss adjustment shall require the written consent of Landlord, Tenant and each Mortgagee.
Evidence of insurance shall be deposited with Landlord and, if requested, with any Mortgagee(s). The policies shall insure against
the following risks:

 

    	 	- 18 -	 

     

    

 

13.1.1           Loss
or damage by fire, vandalism and malicious mischief, extended coverage perils commonly known as special form perils, earthquake
(including earth movement), sinkhole and windstorm in an amount not less than the insurable value on a replacement cost basis
(as defined below in Section 13.2) and including a building ordinance coverage endorsement;

 

13.1.2           Loss
or damage by explosion of steam boilers, pressure vessels or similar apparatus, now or hereafter installed in the Premises, in
such limits with respect to any one accident as may be reasonably requested by Landlord from time to time;

 

13.1.3           Flood
(when the Premises is located in whole or in part within a designated 100-year flood plain area) and such other hazards and in
such amounts as may be customary for comparable properties in the area;

 

13.1.4           Loss
of rental value in an amount not less than twelve (12) months’ Rent payable hereunder or business interruption in an amount
not less than twelve (12) months of income and normal operating expenses including payroll and Rent payable hereunder with an
endorsement extending the period of indemnity by at least ninety (90) days (Building Ordinance Increased Period of Restoration
Endorsement) necessitated by the occurrence of any of the hazards described in Sections 13.1.1, 13.1.2 or 13.1.3; and

 

13.1.5           (a) Bodily
injury and property damage under a policy of commercial general liability insurance (including broad form property damage and
broad form contractual liability) and (b) medical professional liability, with amounts not less than Five Million and No/100 Dollars
($5,000,000.00) per occurrence and Ten Million and No/100 Dollars ($10,000,000.00) in the annual aggregate.

 

13.2         Replacement
Cost. The term “replacement cost” shall mean the actual replacement cost of the insured property from time to
time with new materials and workmanship of like kind and quality. If either party believes that the replacement cost has increased
or decreased at any time during the Term, it shall have the right to have such replacement cost redetermined by an impartial national
insurance company reasonably acceptable to both parties (the “impartial appraiser”). The party desiring to have the
replacement cost so redetermined shall forthwith, on receipt of such determination by the impartial appraiser, give written notice
thereof to the other party hereto. The determination of the impartial appraiser shall be final and binding on the parties hereto,
and Tenant shall forthwith increase or decrease the amount of the insurance carried pursuant to this Section to the amount so
determined by the impartial appraiser. Tenant shall pay the fee, if any, of the impartial appraiser. If Tenant has made improvements
to the Premises, including any Capital Additions. If Tenant has made improvements to the Premises, Landlord may, at Tenant’s
expense. have the replacement cost redetermined at any time after such improvements are made, regardless of when the replacement
cost was last determined.

 

    	 	- 19 -	 

     

    

 

13.3         Additional
Insurance. In addition to the insurance described above, Tenant shall maintain such additional insurance as may be reasonably
required from time to time by Landlord and shall further at all times maintain adequate workers’ compensation coverage and
any other coverage required by Legal Requirements for all Persons employed by Tenant on the Premises in accordance with Legal
Requirements.

 

13.4         Waiver
of Subrogation. All insurance policies carried by either party covering the Premises and Tenant’s Personal Property
including contents, fire and casualty insurance, shall expressly waive any right of subrogation on the part of the insurer against
the other party. Each party waives any claims it has against the other party to the extent such claim is covered by insurance.

 

13.5         Policy
Requirements. All of the policies of insurance referred to in this Section shall be written in form satisfactory to Landlord
and by insurance companies with a policyholder rating of “A” and a financial rating of “X” in the most
recent version of Best’s Key Rating Guide. Additionally, all of the insurance referred to in this Section shall be on an
occurrence (rather than a claims-made) basis. Tenant shall pay all of the premiums therefor, and deliver such policies or certificates
thereof to Landlord prior to their effective date (and with respect to any renewal policy, shall deliver to Landlord’s reasonable
satisfaction, evidence of renewal at least thirty (30) days prior to the expiration of the existing policy), and in the event
of the failure of Tenant either to effect such insurance in the names herein called for or to pay the premiums therefor, or to
deliver such policies or certificates thereof to Landlord, at the times required, Landlord shall be entitled, but shall have no
obligation, to effect such insurance and pay the premiums therefor, in which event the cost thereof, together with interest thereon
at the Overdue Rate, shall be repayable to Landlord upon demand therefor. Each insurer shall agree, by endorsement on the policy
or policies issued by it, or by independent instrument furnished to Landlord, that it will give to Landlord thirty (30) days’
written notice before the policy or policies in question shall be materially altered, allowed to expire or canceled. Each policy
shall have a deductible or deductibles, if any, which are no greater than those normally maintained for similar facilities in
the State of similar size, financial condition, [resident mix and number]; provided, however, that in no event shall the
deductibles for any medical professional liability policies or general liability policies exceed $25,000.00.

 

13.6         Increase
in Limits. If either party shall at any time believe the limits of the insurance required hereunder to be either excessive
or insufficient, the parties shall endeavor to agree in writing on the proper and reasonable limits for such insurance to be carried
and such insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the provisions
of this Section. If the parties shall be unable to agree thereon, the proper and reasonable limits for such insurance to be carried
shall be determined by an impartial third party reasonably selected by Landlord and Tenant. Nothing herein shall permit the amount
of insurance to be reduced below the amount or amounts required by any of the Mortgagees.

 

13.7         Blanket
Policies and Policies Covering Multiple Locations. Notwithstanding anything to the contrary contained in this Section, Tenant’s
obligations to carry the insurance provided for herein may be brought within the coverage of a blanket policy or policies of insurance
carried and maintained by Tenant; provided, however, that the coverage afforded Landlord will not be reduced or
diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this
Lease by reason of the use of such blanket policy of insurance, and provided further that the requirements of this Section are
otherwise satisfied. For any liability policies covering any other facilities in addition to the Premises, Landlord may require
excess limits as Landlord reasonably determines.

 

    	 	- 20 -	 

     

    

 

13.8        No
Separate Insurance. Tenant shall not, on Tenant’s own initiative or pursuant to the request or requirement of any third
party, (a) take out separate insurance concurrent in form or contributing in the event of loss with that required in this Section
to be furnished by, or which may reasonably be required to be furnished by, Tenant or (b) increase the amounts of any then existing
insurance by securing an additional policy or additional policies, unless all parties having an insurable interest in the subject
matter of the insurance, including in all cases Landlord and all Mortgagees, are included therein as additional insured and the
loss is payable under such insurance in the same manner as losses are payable under this Lease. Tenant shall immediately notify
Landlord of the taking out of any such separate insurance or of the increasing of any of the amounts of the then existing insurance
by securing an additional policy or additional policies.

 

SECTION
14

 

14.1        Insurance
Proceeds. All proceeds payable by reason of any loss or damage to the Premises under any policy of insurance required to be
carried hereunder shall be paid to Landlord and made available by Landlord to Tenant from time to time for the reasonable costs
of reconstruction or repair, as the case may be, of any damage to or destruction of the Premises. Any excess proceeds of such
insurance remaining after the completion of (and payment for) the restoration or reconstruction of the Premises (or in the event
neither Landlord nor Tenant is required or elects to repair and restore, all such insurance proceeds) shall be retained by Landlord,
except as otherwise specifically provided below in this Section. All salvage resulting from any risk covered by insurance shall,
at Landlord’s option, belong to Landlord.

 

14.2        Casualty.

 

14.2.1           If
the Premises is damaged or destroyed by fire or other casualty, Tenant shall restore such Premises to substantially the same condition
as existed immediately before such damage or destruction.

 

14.2.2           If
the cost of the repair or restoration exceeds the amount of proceeds received by Landlord from the insurance required to be carried
hereunder, Tenant shall contribute any excess amounts needed to restore the Premises. Such difference shall be paid by Tenant
to Landlord together with any other insurance proceeds, for application to the cost of repair and restoration.

 

14.2.3           If
Tenant purchases the Premises pursuant to Section 40, and if such purchase occurs after a fire or other casualty has damaged or
destroyed the Premises, but prior to the completion by Tenant of its repair and restoration obligations under Section 14.2, Landlord
shall remit to Tenant, at the Close of Escrow, all insurance proceeds that are then being held by Landlord with respect to such
casualty.

 

    	 	- 21 -	 

     

    

 

14.3        No
Abatement of Rent. This Lease shall remain in full force and effect and Tenant’s obligation to pay the Rent and all
other charges required by this Lease shall remain unabated during the period required for adjusting insurance, satisfying Legal
Requirements, repair and restoration. All proceeds payable by reason of any loss of rental or business interruption under any
policy of insurance required to be carried by Tenant hereunder shall be paid to Landlord and, provided that no Event of Default
has occurred and is continuing, Landlord shall (a) apply, on a monthly basis, all such proceeds paid by reason of loss of
rental towards Tenant’s obligation to pay Rent; and (b) after Rent has been paid, make available to Tenant for Tenant’s
operating costs (e.g., payment of salaries, taxes, etc.), on a monthly basis, all such proceeds paid by reason of business interruption.
Any excess proceeds of such insurance remaining after such rent and operating costs have been paid shall be delivered to Tenant

 

14.4        Waiver.
Tenant waives any statutory rights of termination that may arise by reason of any damage or destruction of the Premises.

 

SECTION
15

 

15.1        Condemnation.

 

15.1.1           Total
Taking. If the Premises are totally and permanently taken by Condemnation, this Lease shall terminate as of the day before
the Date of Taking.

 

15.1.2           Partial
Taking. If a portion of the Premises is taken by Condemnation, this Lease shall remain in effect if the Premises is not thereby
rendered Unsuitable for Its Primary Intended Use (except that this Lease shall terminate with respect to the portion of the Premises
so taken), but if the Premises are thereby rendered Unsuitable for its Primary Intended Use, this Lease shall terminate as of
the day before the Date of Taking. In the event of any such partial taking in which the Lease is not so terminated and such partial
taking affects the building (as opposed to components of the Premises such as parking, landscaping, sidewalks, etc.), Minimum
Rent shall be adjusted in a manner that is fair, just and equitable to both Landlord and Tenant.

 

15.1.3           Restoration.
If there is a partial taking of the Premises and this Lease remains in full force and effect pursuant to Section 15.1.2, Landlord
shall make available to Tenant the portion of the Award necessary and specifically identified or allocated for restoration of
the Premises and Tenant shall accomplish all necessary restoration whether or not the amount provided or allocated by the Condemnor
for restoration is sufficient.

 

15.1.4           Award
Distribution. Subject to Section 15.1.3 above, the entire Award shall belong to and be paid to Landlord, except that Tenant
shall be entitled to receive from the Award, if and to the extent such Award specifically includes such item, lost profits value
and moving expenses.

 

15.1.5           Temporary
Taking. The taking of the Premises and/or any part(s) thereof, shall constitute a taking by Condemnation only when the use
and occupancy by the taking authority has continued for longer than one hundred eighty (180) consecutive days. During any shorter
period, which shall be considered a temporary taking, all the provisions of this Lease shall remain in full force and effect and
the Award allocable to the Term shall be paid to Tenant.

 

    	 	- 22 -	 

     

    

 

15.1.6           Sale
under Threat of Condemnation. A sale by Landlord to any Condemnor, either under threat of Condemnation or while Condemnation
proceedings are pending, shall be deemed a Condemnation for purposes of this Lease. Subject to Tenant’s consent, which shall
not be unreasonably withheld, Landlord may, without any obligation to Tenant, agree to sell and/or convey to any Condemnor all
or any portion of the Premises free from this Lease and the rights of Tenant hereunder without first requiring that any action
or proceeding be instituted or pursued to judgment.

 

SECTION
16

 

16.1        Events
of Default. Any one or more of the following shall constitute an “Event of Default”:

 

16.1.1           a
default shall occur under any other lease or other agreement or instrument, now or hereafter with or in favor of Landlord or any
Affiliate of Landlord and made by or with Tenant or any Affiliate of Tenant where such default is not cured within applicable
notice and cure periods in such lease, agreement or instrument;

 

16.1.2           Tenant
shall fail to pay any installment of Rent by the last day of the applicable calendar month and does not cure such failure within
ten (10) days of notice from Landlord that the same is past due;

 

16.1.3           except
as otherwise specifically provided for in this Section, if Tenant shall fail to observe or perform any other term, covenant or
condition of this Lease and such failure is not cured by Tenant within thirty (30) days after notice thereof from Landlord, unless
such failure cannot with due diligence be cured within a period of thirty (30) days, in which case such failure shall not be deemed
to be an Event of Default if Tenant commences to cure such failure within such 30-day period and thereafter proceeds promptly
and with reasonable diligence to cure the failure and diligently completes the curing thereof; provided, however, that (i) such
notice shall be in lieu of and not in addition to any notice required under applicable law; and (ii) in no event shall the cure
period set forth above continue for more than sixty (60) days after the initial notice of such default is delivered by Landlord
to Tenant;

 

16.1.4           Tenant
or any Guarantor shall admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy
or a petition to take advantage of any insolvency act, make an assignment for the benefit of its creditors, consent to the appointment
of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization
or arrangement under the Federal bankruptcy laws or any other applicable law or statute of the United States of America or any
state thereof;

 

16.1.5           Tenant
or any Guarantor shall be adjudicated as bankrupt or a court of competent jurisdiction shall enter an order or decree appointing
a receiver of Tenant or of the whole or substantially all of its property and such judgment, order or decree shall not be vacated
or set aside or stayed within sixty (60) days from the date of the entry thereof;

 

    	 	- 23 -	 

     

    

 

16.1.6           Tenant
or any Guarantor shall be liquidated or dissolved, or shall begin proceedings toward such liquidation or dissolution, or shall,
in any manner, permit the sale or divestiture of substantially all its assets (except to the extent such a sale is expressly permitted
hereunder);

 

16.1.7           any
breach or default of the provisions of Section 24.1 occurs;

 

16.1.8           any
of the representations or warranties made by Tenant herein or by any Guarantor in the Guaranty proves to be untrue when made in
any material respect;

 

16.1.9           any
license or third-party provider reimbursement agreements material to operation of the Premises for its Primary Intended Use are
at any time terminated or revoked or suspended;

 

16.1.10         Tenant
fails to give notice to Landlord not later than ten (10) days after any notice, claim or demand from any governmental authority,
or any officer acting on behalf thereof, of any material violation of any Legal Requirement with respect to the operation of the
Premises. For purposes of this Subsection, a “material violation” shall mean a violation of any such Legal Requirement
that is reasonably likely to (i) have a material adverse effect on Tenant’s operations in the Premises; or (ii) impose any
liability on Landlord;

 

16.1.11         Tenant
fails to cure or abate any material violation (except for violations being contested by Tenant pursuant to Section12.1 hereof)
occurring during the Term that is claimed by any governmental authority, or any officer acting on behalf thereof, of any law,
order, ordinance, rule or regulation pertaining to the operation of the Premises, and within the time permitted by such authority
for such cure or abatement. For purposes of this Subsection, a “material violation” shall mean a violation of any
such law, order, ordinance, rule or regulation that is reasonably likely to (i) have a material adverse effect on Tenant’s
operations in the Premises; or (ii) impose any liability on Landlord;

 

16.1.12         Tenant
fails to notify Landlord within three (3) business days after receipt of any notice from any governmental agency terminating or
suspending or reflecting a material risk of imminent termination or suspension, of any material license or certification relating
to the Premises;

 

16.1.13         any
proceedings are instituted against Tenant by any governmental authority that are reasonably likely to result in (i) the revocation
of any license granted to Tenant that is material to the operation of the Premises; (ii) the decertification of the Premises from
participation in the Medicare or Medicaid reimbursement program if participation in such programs is applicable and is material
to the operation of the Premises; or (iii) the issuance of a stop placement order against Tenant;

 

16.1.14         any
default and acceleration of any indebtedness of borrowed money in excess of $250,000 of Tenant, Guarantor or any Affiliate of
Tenant or Guarantor has occurred;

 

16.1.15         any
default shall occur under any Guaranty;

 

    	 	- 24 -	 

     

    

 

16.1.16         Tenant
or its Affiliates, as applicable, shall fail to comply with the provisions of Section 47.1 below;

 

16.1.17         Tenant
fails maintain the Coverage Requirement for two (2) successive reporting quarters (a “Coverage Default”), and
thereafter does not meet the Coverage Requirement within two (2) reporting quarters after receipt of notice thereof from Landlord;

 

16.1.18         Tenant
fails to maintain the Minimum Net Worth; provided, however, that such event shall only constitute an Event of Default hereunder
if Landlord delivers notice of such failure to Tenant and if such failure continues beyond any cure period expressly afforded
by Landlord to Tenant in such notice (it being agreed, however, that the decision as to whether a cure period shall be granted
and the duration of such cure period, if any, shall be determined by Landlord in its sole and absolute discretion);

 

16.2         Certain
Remedies. If an Event of Default shall have occurred, Landlord may terminate this Lease, by giving Tenant notice of such termination
and the Term shall terminate and all rights of Tenant under this Lease shall cease. Landlord shall have all rights at law and
in equity available to Landlord as a result of any Event of Default. Tenant shall pay as Additional Charges all costs and expenses
incurred by or on behalf of Landlord, including reasonable attorneys’ fees and expenses, as a result of any Event of Default
hereunder. If an Event of Default shall have occurred and be continuing, whether or not this Lease has been terminated pursuant
to this Section, Tenant shall, to the extent permitted by law, if required by Landlord so to do, immediately surrender to Landlord
possession of the Premises and quit the same and Landlord may enter upon and repossess the Premises by reasonable force, summary
proceedings, ejectment or otherwise, and may remove Tenant and all other Persons and any of Tenant’s Personal Property from
the Premises.

 

16.3         Damages.
The (a) termination of this Lease; (b) repossession of the Premises; (c) failure of Landlord, notwithstanding reasonable
good faith efforts, to relet the Premises; (d) reletting of all or any portion of the Premises; or (e) failure or inability
of Landlord to collect or receive any rentals due upon any such reletting, shall not relieve Tenant of its liabilities and obligations
hereunder, all of which shall survive any such termination, repossession or reletting. If any such termination occurs, Tenant
shall forthwith pay to Landlord all Rent due and payable with respect to the Premises to and including the date of such termination.
Thereafter, following any such termination, Tenant shall forthwith pay to Landlord, at Landlord’s option, as and for liquidated
and agreed current damages for an Event of Default by Tenant, the sum of:

 

16.3.1           the
worth at the time of award of the unpaid Rent (including all monthly Minimum Rent) which had been earned at the time of termination,

 

16.3.2           the
worth at the time of award of the amount by which the unpaid Rent (including all monthly Minimum Rent) which would have been earned
after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably
avoided,

 

16.3.3           the
worth at the time of award of the amount by which the unpaid Rent (including all monthly Minimum Rent) for the balance of the
then current Term (not including any Extended Terms that have not yet been exercised, but including any Extended Term which has
been exercised but has not yet commenced) after the time of award exceeds the amount of such rental loss that Tenant proves could
be reasonably avoided, plus

 

    	 	- 25 -	 

     

    

 

16.3.4           any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its
obligations under this Lease or which in the ordinary course of things would be likely to result therefrom.

 

As used in Subsections 16.3.1 and 16.3.2
above, the “worth at the time of award” shall be computed by allowing interest at the Overdue Rate. As used in Subsection
16.3.3 above, the “worth at the time of award” shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of New York at the time of award plus One Percent (1%). Alternatively, if Landlord does not elect to
terminate this Lease, then Tenant shall pay to Landlord, at Landlord’s option, as and for agreed damages for such Event
of Default without termination of Tenant’s right to possession of the Premises and any Capital Additions, each installment
of said Rent (including the monthly Minimum Rent) and other sums payable by Tenant to Landlord under this Lease as the same becomes
due and payable with respect to the Premises, together with interest at the Overdue Rate from the date when due until paid, and
Landlord may enforce, by action or otherwise, any other term or covenant of this Lease.

 

16.4         Receiver.
Upon the occurrence of an Event of Default, and upon commencement of proceedings to enforce the rights of Landlord hereunder,
Landlord shall be entitled, as a matter of right, to the appointment of a receiver or receivers acceptable to Landlord of the
Premises and/or of the revenues, earnings, income, products and profits thereof, pending the outcome of such proceedings, with
such powers as the court making such appointment shall confer.

 

16.5         Waiver.
If Landlord initiates judicial proceedings or if this Lease is terminated by Landlord pursuant to this Section, Tenant waives,
to the extent permitted by applicable law, (a) any right of redemption, re-entry or repossession; and (b) the benefit of
any laws now or hereafter in force exempting property from liability for rent or for debt.

 

16.6         Application
of Funds. Any payments received by Landlord under any of the provisions of this Lease during the existence or continuance
of any Event of Default that are made to Landlord rather than Tenant due to the existence of an Event of Default (including all
rentals received as a result of any reletting) shall be applied to Tenant’s obligations in the order which Landlord may
determine or as may be prescribed by the laws of the State in which the Premises are located.

 

16.7         Landlord’s
Security Interest. The parties intend that if an Event of Default occurs under this Lease, Landlord will control Tenant’s
Personal Property and the Intangible Property so that Landlord or its designee or nominee can operate or re-let the Premises intact
for their Primary Intended Use. Accordingly, to implement such intention, and for the purpose of securing the payment and performance
obligations of Tenant hereunder, Landlord and Tenant agree as follows:

 

    	 	- 26 -	 

     

    

 

16.7.1           Tenant,
as debtor, hereby grants to Landlord, as secured party, a security interest in, and an express contractual lien upon, all of Tenant’s
right, title and interest in and to (a) Tenant’s Personal Property and in and to the Intangible Property and any and all
products, rents, proceeds and profits thereof in which Tenant now owns or hereafter acquires an interest or right, including any
leased Tenant’s Personal Property, and further including the property and interests in property described on Exhibit
C hereto (except to the extent such items constitute Landlord’s Personal Property), and (b) all of Tenant’s right,
title and interest in and to the Seller Note (collectively, the “Collateral”). This Lease constitutes a security
agreement covering all such Tenant’s Personal Property and the Intangible Property. The security interest granted to Landlord
with respect to Tenant’s Personal Property in this Subsection is intended by Landlord and Tenant to be subordinate to any
security interest granted in connection with the financing or leasing of all or any portion of the Tenant’s Personal Property
so long as the lessor or financier of such Tenant’s Personal Property agrees to give Landlord written notice of any default
by Tenant under the terms of such lease or financing arrangement, to give Landlord a reasonable time following such notice to
cure any such default and consents to Landlord’s written assumption of such lease or financing arrangement upon Landlord’s
curing of any such defaults.

 

16.7.2           Tenant
hereby authorizes Landlord to file such financing statements, continuation statements and other documents as may be necessary
or desirable to perfect or continue the perfection of Landlord’s security interest in the Collateral. In addition, if required
by Landlord at any time during the Term, (Tenant shall execute and deliver to Landlord, in form reasonably satisfactory to Landlord,
additional security agreements, financing statements, fixture filings and such other documents as Landlord may reasonably require
to perfect or continue the perfection of Landlord’s security interest in the Collateral. In the event Tenant fails to execute
any financing statement or other documents for the perfection or continuation of Landlord’s security interest, Tenant hereby
appoints Landlord as its true and lawful attorney-in-fact to execute any such documents on its behalf, which power of attorney
shall be irrevocable and is deemed to be coupled with an interest.

 

16.7.3           Tenant
will give Landlord at least thirty (30) days’ prior written notice of any change in Tenant’s name, identity, jurisdiction
of organization or corporate structure. With respect to any such change, Tenant will promptly execute and deliver such instruments,
documents and notices and take such actions, as Landlord deems necessary or desirable to create, perfect and protect the security
interests of Landlord in the Collateral.

 

16.7.4           Upon
the occurrence of an Event of Default, Landlord shall be entitled to exercise any and all rights or remedies available to a secured
party under the Uniform Commercial Code, or available to a lessor under the laws of the State, with respect to Tenant’s
Personal Property and the Intangible Property, including the right to sell the same at public or private sale.

 

16.7.5           Tenant
shall deposit the Seller Note with Landlord as further security for this Lease. At any time after December 31, 2021 that
AIU is not a subtenant paying rent at least equal to the AIU December 2021 Rent, Tenant will have the right to draw upon the Seller
Note in monthly increments equal to the AIU December 2021 Rent, until the AIU space is re-subleased to a tenant at least as creditworthy
as AIU for at least five (5) years at a rent at least equal to the AIU December 2021 Rent. If an Event of Default by Tenant
occurs, Landlord shall have the right to make draws under the Seller Note upon the terms set forth above.

 

    	 	- 27 -	 

     

    

 

SECTION
17

 

17.1         Landlord’s
Right to Cure Tenant’s Default. If Tenant shall fail to make any payment or to perform any act required to be made or
performed hereunder within fifteen (15) days after written demand by Landlord (except in case of emergencies), Landlord, without
waiving or releasing any obligation or default, may, but shall be under no obligation to, make such payment or perform such act
for the account and at the expense of Tenant, and may, to the extent permitted by law, enter upon the Premises for such purpose
and take all such action thereon as, in Landlord’s opinion, may be necessary or appropriate therefor. No such entry shall
be deemed an eviction of Tenant. All sums so paid by Landlord and all costs and expenses, including reasonable attorneys’
fees and expenses, so incurred, together with interest thereon at the Overdue Rate from the date on which such sums or expenses
are paid or incurred by Landlord, shall be paid by Tenant to Landlord on demand.

 

SECTION
18

 

18.1         Intentionally
Omitted.

 

SECTION
19

 

19.1         Renewal
Terms. Provided that no Event of Default has occurred and is continuing, either at the date of exercise or upon the commencement
of an Extended Term (as hereunder defined), then Tenant shall have the right to renew this Lease with respect to the Premises
of all (but not less than all) of the Premises for the Extended Term(s). Tenant shall be deemed to have exercised its renewal
options in this Section unless Tenant gives written notice to Landlord of Tenant’s election not to exercise such
renewal option at least twenty-four (24) months prior to the expiration of the then applicable current Term. During each Extended
Term, all of the terms and conditions of this Lease shall continue in full force and effect, except for the Minimum Rent, which
shall be as set forth in Section 19.2.

 

19.2         Determination
of Fair Market Rent. If Tenant’s renewal option is deemed exercised as provided in the preceding Section, Landlord shall
notify Tenant of the proposed Fair Market Rent for the Premises at least eight (8) months prior to the expiration of the then
applicable Term. “Fair Market Rent” shall be the anticipated rate in effect for the Premises as of the commencement
of the applicable Extended Term, based upon the rents generally in effect for new leases of space in the area in which the Premises
are located of equivalent quality, size, utility and location, with the length of the extended term and the credit standing of
Tenant to be taken into account. In no event shall the Fair Market Rent be less than the Minimum Rent set forth herein. Landlord
shall lease to Tenant the Premises in their then-current condition, and Landlord shall not provide to Tenant any allowances (e.g.,
moving allowance, construction allowance, free rent or the like) or other tenant inducements. If Tenant does not accept the rate
set forth in Landlord’s notice, Tenant shall have the right, upon notice sent to Landlord within fifteen (15) days
of receipt of Landlord’s notice containing the proposed Fair Market Rent, to require that Fair Market Rent be determined
by an appraisal. If Tenant does not so notify Landlord, Tenant shall be deemed to have accepted the Fair Market Rent set forth
in Landlord’s notice. In the event Tenant elects to have an appraisal, the following shall apply:

 

    	 	- 28 -	 

     

    

 

19.2.1           Landlord
shall send written notice to Tenant ("Landlord's Notice") designating the name of Landlord’s independent,
third party Appraiser (“Landlord’s Appraiser”).

 

19.2.2           Within
five (5) days of receipt of Landlord’s notice, Tenant shall notify Landlord of either (i) Tenant’s acceptance of Landlord’s
Appraiser; or (ii) the name of Tenant’s independent third party Appraiser (“Tenant’s Appraiser”).
If Tenant fails to so notify Landlord, Tenant shall be deemed to have accepted Landlord’s Appraiser.

 

19.2.3           If
Tenant accepts Landlord’s Appraiser, the Fair Market Rent shall be determined by Landlord’s Appraiser within thirty
(30) days of Landlord's Notice.

 

19.2.4           If
Tenant does not accept Landlord’s Appraiser, within thirty (30) days of Landlord's Notice Landlord’s Appraiser
and Tenant’s Appraiser shall each state what they believe the Fair Market Rent to be. If the two (2) rates vary by five
percent (5%) or less, then the Fair Market Rent shall be the average of the two (2) rates. If the two (2) rates vary by more than
five percent (5%), such two Appraisers shall select an independent third party Appraiser no later than sixty (60) days after Landlord's
Notice, and within five (5) days after such appointment, the third Appraiser shall select one (1) of the two (2) rates set by
Landlord’s Appraiser and Tenant’s Appraiser as the Fair Market Rent.

 

19.2.5           Each
party shall bear the cost of its Appraiser; provided, however (i) if Tenant accepts Landlord’s Appraiser, the parties shall
share equally the cost of Landlord’s Appraiser; or (ii) if a third Appraiser is appointed, the parties shall share equally
the cost of such third Appraiser.

 

19.2.6           “Appraiser”
shall mean a real estate broker who has a minimum of five (5) years’ experience in the Westland, Michigan leasing market
for properties to the Premises, who is licensed by the State of Michigan, and who is not affiliated with either party or involved
in an active transaction with either party.

 

SECTION
20

 

20.1         Holding
Over. If Tenant shall for any reason remain in possession of the Premises after the expiration or earlier termination of the
Term, such possession shall be as a month-to-month tenant during which time Tenant shall pay as Rent each month one hundred fifty
percent (150%) of the sum of (a) monthly Minimum Rent applicable to the prior Lease Year, together with (b) all Additional
Charges and all other sums payable by Tenant pursuant to this Lease. During such period of month-to-month tenancy, Tenant shall
be obligated to perform and observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder
other than the right, to the extent given by law to month-to-month tenancies, to continue its occupancy and use of the Premises.
Nothing contained herein shall constitute the consent, express or implied, of Landlord to the holding over of Tenant after the
expiration or earlier termination of this Lease.

 

    	 	- 29 -	 

     

    

 

SECTION
21

 

21.1        Security
for Tenant Obligations.

 

21.1.1           If
a Coverage Default is not cured as provided in Section 16.1.17, in addition to any other remedies to which Landlord may be entitled,
Landlord may require that Tenant provide to Landlord a letter of credit complying with the Letter of Credit Requirements as security
for Tenant’s obligations under this Lease (a “Security Letter of Credit”). The face amount of the Security
Letter of Credit shall be one (1) year’s Minimum Ren (the “Required Coverage”). If at any time face amount
of the Security Letter of Credit held by Landlord pursuant to this paragraph, shall be less than the Required Coverage, Tenant
shall deliver to Landlord one or more replacement or additional Security Letters of Credit (or amendments to the existing Security
Letters of Credit) to the extent necessary to cause the face amount of the Security Letters of Credit held by Landlord pursuant
to this paragraph, to be at least equal to the Required Coverage.

 

21.1.2           If
Tenant meets the Coverage Requirement for four (4) successive quarters, the Security Letter of Credit shall be returned to Tenant,
and shall not be required thereafter unless another Coverage Default occurs. Further, If Tenant shall fully and faithfully perform
every provision of this Lease to be performed by Tenant, upon the expiration of the Term, the Security Letter of Credit shall
be returned to within ninety (90) days after the expiration of such Term.

 

21.2        Rent
Reserve Fund. Tenant will maintain and demonstrate, on demand from Landlord, a cash (including cash equivalents and accounts
receivable) account on its balance sheet, or alternatively, at Tenant’s option, a letter of credit (the “Rent Reserve
Letter of Credit”) at least equal to the Minimum Required Rent Reserve (the “Rent Reserve Fund”).
Tenant may use the cash account or direct the Landlord to draw upon the Rent Reserve Letter of Credit, as applicable, to pay Rent
(a “Rent Reserve Fund Draw”). If a Rent Reserve Fund Draw occurs, then Tenant or Guarantor will replenish the
Rent Reserve Fund monthly in the amount of Fifty Thousand Dollars ($50,000) per month until the Rent Reserve Fund reaches the
Minimum Required Rent Reserve. The Rent Reserve Fund will count as part of any cash reserve requirement and in the Minimum Net
Worth computation.

 

21.3        Letter
of Credit Requirements. The following requirements shall apply to any letters of credit posted by Tenant in connection with
this Lease (the “Letter of Credit Requirements”):

 

21.3.1           Each
letter of credit must be unconditional, irrevocable and in substantially the form attached hereto as Exhibit D (or another
form satisfactory to Landlord).

 

21.3.2           Each
letter of credit must be issued by a financial institution having offices located in New York, New York and otherwise reasonably
satisfactory to Landlord.

 

    	 	- 30 -	 

     

    

 

21.3.3           Tenant
understands that Landlord is relying upon the financial condition of the issuer of the letter of credit, as a primary inducement
to Landlord to lease the Premises to Tenant. In the event Moody’s rating on the issuer’s long term senior debt becomes
less than Baa2 while the letter of credit is outstanding, Landlord may notify Tenant of such fact, and Tenant shall have five
(5) days from the date of such notice within which to either (i) secure the letter of credit with additional collateral acceptable
to Landlord in its sole discretion; (ii) provide a substitute letter of credit in the same form as the letter of credit but issued
by a banking institution reasonably satisfactory to Landlord having its senior long term debt rated at least Baa2 by Moody’s
or equivalent rating service; or (iii) have the letter of credit confirmed by a banking institution reasonably satisfactory to
Landlord having its senior long term debt rated at least Baa2 by Moody’s or equivalent rating service. Failure to do one
of the foregoing within such time shall constitute an Event of Default and shall entitle Landlord to present the letter of credit
for payment at any time after such default, without providing Tenant any further notice or opportunity to cure, and the entire
sum drawn thereunder shall be held by Landlord as provided in Subsection 21.2.13, below.

 

21.3.4           Each
letter of credit mush expressly permit partial drawings on multiple occasions.

 

21.3.5           Each
letter of credit shall provide that it is assignable by Landlord without charge to Landlord and without limitation on the permitted
number of assignments.

 

21.3.6           Unless
otherwise provided herein, the initial letter of credit shall expire no sooner than twelve (12) months from the date thereof.
The letter of credit must be satisfactorily renewed or replaced with replacement letters of credit meeting all of the Letter of
Credit Requirements except that the expiration date shall be no less than twelve (12) months from the date of issuance. Such renewal
or replacement letters of credit must be in Landlord’s possession no later than sixty (60) days prior to the expiration
of the then current letter of credit. Tenant shall be responsible for obtaining such renewal or replacement letters of credit
at its sole expense. Failure to renew a letter of credit in accordance with the foregoing will entitle Landlord to present the
letter of credit for payment, without providing Tenant any notice or opportunity to cure, and the entire sum drawn thereunder
shall be held by Landlord as provided in subsection 21.2.13, below.

 

21.3.7           Each
letter of credit shall provide that it will be honored upon a signed statement by Landlord that Landlord is entitled to draw upon
such letter of credit under this Lease and shall require no signature or statement from any party other than Landlord.

 

21.3.8           Each
letter of credit shall provide that, following the honor of any drafts in an amount less than the aggregate amount thereof, the
financial institution shall return the original letter of credit to Landlord and Landlord’s rights as to the remaining amount
of such letter of credit will not be extinguished.

 

21.3.9           In
the event of a transfer of Landlord’s interest in the Premises, Landlord may transfer any letter of credit held by Landlord
to the transferee and thereupon shall, without any further agreement between the parties, be released by Tenant from all liability
therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of any such letter of credit
to a new Landlord.

 

    	 	- 31 -	 

     

    

 

21.3.10         Landlord’s
rights in and to any letter of credit may be assigned and pledged by Landlord to a Mortgagee as security in connection with a
Mortgage.

 

21.3.11         Tenant
will not assign or encumber the letter of credit or any part thereof and agrees that neither Landlord nor its successors or assigns
will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

21.3.12         Upon
the occurrence of an Event of a Default, in addition to any or all of its other remedies contained in this Lease, Landlord shall
have the right (but not the obligation) to present the letter of credit for payment and to draw thereon, in whole or in part.
In the event of any such draw, Landlord may require that Tenant forthwith provide Landlord with an additional letter of credit
in an amount sufficient to restore the aggregate amounts of the letter(s) of credit held by Landlord to the amount prior to such
draw.

 

21.3.13         Landlord
may use or apply the whole or any part of the amounts drawn on the letter(s) of credit (the “Proceeds”) for
the payment of Tenant’s obligations under this Lease. Any Proceeds not otherwise applied to amounts then due Landlord shall
serve as security for the prompt, full, and faithful performance by Tenant of the terms and provisions of this Lease. Tenant’s
obligation to furnish the letter of credit and any use, application or retention by Landlord of all or any part of the Proceeds
shall not be deemed in any way to constitute liquidated damages for any default by Tenant, or to limit the remedies to which Landlord
is otherwise entitled under the terms of this Lease. In the event the Proceeds are reduced below the original amount of the letter
of credit by such use or application, Tenant shall deposit with Landlord, within ten (10) days after notice, an amount sufficient
to restore the amount of the Proceeds to the original amount. Landlord shall not be required to keep the Proceeds separate from
Landlord’s general funds or pay interest on the Proceeds. Provided Tenant has performed all of its obligations under this
Lease, any remaining portion of the Proceeds shall be returned to Tenant within thirty (30) days subsequent to the expiration
of the Term. No trust or fiduciary relationship is created herein between Landlord and Tenant with respect to the Proceeds. If
Landlord transfers the Premises during the Term of this Lease, Landlord may pay the Proceeds to Landlord’s successor-in-interest,
in which event the transferring Landlord shall be released from all liability for the return of the Proceeds.

 

21.3.14         Landlord
shall return the letter of credit to Tenant within thirty (30) days following the expiration of the Term; provided however, no
such release shall occur at any time when Tenant has failed to perform any of its obligations under the under the Lease, regardless
of whether any applicable notice or cure periods have expired.

 

21.4        Subordination
of Debt and Distributions. Tenant will not seek to subordinate the Rent payable under this Lease to any creditor obligation
or debt. Rent will be paid and received, and current under this Lease, before (a) any other creditor obligation or debt is
paid; and (b) any profits are distributed to Tenant’s owners or assigns.

 

    	 	- 32 -	 

     

    

 

SECTION
22

 

22.1         Risk
of Loss. The risk of loss or of decrease in the enjoyment and beneficial use of the Premises as a consequence of the damage
or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise, or in consequence of foreclosures,
attachments, levies or executions (other than by Landlord and Persons claiming from, through or under Landlord) is assumed by
Tenant, and no such event shall entitle Tenant to any abatement of Rent.

 

SECTION
23

 

23.1         General
Indemnification. In addition to the other indemnities contained herein, and notwithstanding the existence of any insurance
carried by or for the benefit of Landlord or Tenant, and without regard to the policy limits of any such insurance, Tenant shall
protect, indemnify, save harmless and defend Landlord and its Affiliates from and against all liabilities, obligations, claims,
damages penalties, causes of action, costs and expenses, including reasonable attorneys’, consultants’ and experts’
fees and expenses, imposed upon or incurred by or asserted against Landlord by reason of: (a) any accident, injury to or death
of Persons or loss of or damage to property occurring on or about the Premises or adjoining sidewalks thereto; (b) any use,
misuse, non-use, condition, maintenance or repair by Tenant of the Premises; or (c) any failure on the part of Tenant to
perform or comply with any of the terms of this Lease; (d) the non-performance of any of the terms and provisions of any
and all existing and future subleases of the Premises to be performed by any party thereunder; (e) any claim for malpractice,
negligence or misconduct committed by any Person on or working from the Premises or any Capital Additions; and (f) the violation
of any Legal Requirement. Any amounts that become payable by Tenant under this Section shall be paid within ten (10) days after
demand by Landlord, and if not timely paid shall bear interest at the Overdue Rate from the date of such determination to the
date of payment. Tenant, at its sole cost and expense, shall contest, resist and defend any such claim, action or proceeding asserted
or instituted against Landlord or its Affiliates or may compromise or otherwise dispose of the same as Tenant sees fit; provided,
however, that any legal counsel selected by Tenant to defend Landlord shall be reasonably satisfactory to Landlord. All indemnification
covenants are intended to apply to losses, damages, injuries, claims, etc. incurred directly by the indemnified parties and their
property, as well as by the indemnifying party or third party, and their property. For purposes of this Section, any acts or omissions
of Tenant, or by employees, agents, assignees, contractors, subcontractors or others acting for or on behalf of Tenant (whether
or not they are negligent, intentional, willful or unlawful), shall be strictly attributable to Tenant. It is understood and agreed
that payment shall not be a condition precedent to enforcement of the foregoing indemnification obligations.

 

    	 	- 33 -	 

     

    

 

SECTION
24

 

24.1        Transfers.

 

24.1.1           Assignment.

 

(a)          Tenant
shall not, without Landlord’s prior written consent, either directly or indirectly or through one or more step transactions
or tiered transactions, voluntarily or by operation of law, (i) assign, convey, sell, pledge, mortgage, hypothecate or otherwise
encumber, transfer or dispose of all or any part of this Lease or Tenant’s leasehold estate hereunder; (ii) engage
the services of any Person for the management or operation of all or any part of the Premises or any Capital Additions; (iii) convey,
sell, assign, transfer or dispose of any stock or partnership, membership or other interests (whether equity or otherwise) in
Tenant (which shall include any conveyance, sale, assignment, transfer or disposition of any stock or partnership, membership
or other interests (whether equity or otherwise) in any Controlling Person(s)), if such conveyance, sale, assignment, transfer
or disposition results, directly or indirectly, in a change in control of Tenant (or in any Controlling Person(s)); (iv) dissolve,
merge, reorganize, recapitalize, exchange shares or consolidate Tenant (which shall include any dissolution, merger, reorganization,
recapitalization, exchange of shares or consolidation of any Controlling Person) with any other Person, if such dissolution, merger,
reorganization, recapitalization, exchange of shares or consolidation, directly or indirectly, results in a change in control
of Tenant or in any Controlling Person(s); (v) sell, convey, assign, or otherwise transfer all or substantially all of the
assets of Tenant (which shall include any sale, conveyance, assignment, or other transfer of all or substantially all of the assets
of any Controlling Person(s)); or (vi) enter into or permit or allow to be entered into any agreement or arrangement to do
any of the foregoing or to grant any option or other right to any Person to do any of the foregoing (each of the aforesaid acts
referred to in clauses (a) through (g) being referred to herein as a “Transfer”). If Tenant so allows, causes,
permits or suffers any such Transfer without Landlord’s consent in each such instance, such event shall constitute an Event
of Default by Tenant under this Lease.

 

(b)          Notwithstanding
the foregoing, Landlord’s consent to an assignment shall not be required as long as (i) the creditworthiness of the
proposed assignee is equal to or greater than the creditworthiness of Tenant as of the date of this Lease or the date of the proposed
assignment, whichever is higher; (ii) the proposed assignee meets all other requirements of this Lease, including without
limitation insurability and legal diligence, and (iii) Tenant and Guarantor are not released from liability under this Lease..
It is understood that Landlord may nonetheless withhold consent despite satisfaction of the conditions in the foregoing subsections
based on other reasonable grounds.

 

24.1.2           Subletting.
Subletting will not require approval of Landlord but will be limited to ancillary licensed medical operators, services and concessions
(including pharmacy, ambulance service, physician joint venture, mobile imaging, etc.). Landlord will not unreasonably withhold
its consent for subleases of vacant space to other third party subtenants. Tenant will not pledge or encumber any sublease rents
to any third party. Upon any Event of Default under this Lease, all sublease rents will be paid directly to Landlord. Tenant shall
not, without Landlord’s prior written consent in each instance, allow, cause, permit or suffer all or any portion of the
Premises to be leased, subleased or licensed to, or used or occupied by, any other Person and Landlord may, in Landlord’s
sole and absolute discretion, grant, withhold or place conditions upon such consent. If Tenant allows, causes, permits or suffers
any sublease or occupancy without Landlord’s prior written consent if required hereunder, same shall constitute an Event
of Default by Tenant under this Lease.

 

24.1.3           Costs.
Tenant shall reimburse Landlord for Landlord’s actual costs and expenses incurred in conjunction with the processing and
documentation of any request to Transfer, including attorneys’, architects’, engineers’ or other consultants’
fees, whether or not such Transfer is actually consummated.

 

24.1.4           No
Release of Tenant’s Obligations. No assignment, conveyance, subletting or other action pursuant to this Section shall
relieve Tenant of its obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder.

 

    	 	- 34 -	 

     

    

 

24.1.5           REIT
Protection. Anything contained in this Lease to the contrary notwithstanding, (a) no Transfer shall be consummated on
any basis such that the rental or other amounts to be paid by the Occupant, assignee, manager or other transferee thereunder would
be based, in whole or in part, on the income or profits derived by the business activities of the Occupant, assignee, manager
or other transferee; (b) Tenant shall not furnish or render any services to an Occupant, assignee, manager or other transferee
with respect to whom Transfer Consideration is required to be paid or manage or operate the Premises and/or any Capital Additions
so Transferred with respect to which consideration for the Transfer is being paid; (c) Tenant shall not consummate a Transfer
with any Person in which Landlord or its Affiliate owns an interest, directly or indirectly by applying constructive ownership
rules set forth in Section 856(d)(5) of the Code; and (d) Tenant shall not consummate a Transfer with any Person or
in any manner which could cause any portion of the amounts received by Landlord pursuant to this Lease or any Occupancy Arrangement
to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar
or successor provision thereto or that could cause any other income of Landlord or its Affiliate to fail to qualify as income
described in Section 856(c)(2) of the Code.

 

24.1.6           Transfers
in Bankruptcy. In the event of a Transfer or assignment of this Lease pursuant to the provisions of the Bankruptcy Code, all
consideration payable or otherwise to be delivered in connection with such Transfer or assignment shall be paid or delivered to
Landlord, shall be and remain the exclusive property of Landlord and shall not constitute property of Tenant or of the estate
of Tenant within the meaning of the Bankruptcy Code. Any consideration constituting Landlord’s property pursuant to the
immediately preceding sentence and not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and be
promptly paid or delivered to Landlord. For purposes of this Subsection, the term “consideration” shall mean and include
money, services, property and any other thing of value such as payment of costs, cancellation or forgiveness of indebtedness,
discounts, rebates, barter and the like. If any such consideration is in a form other than cash (such as in kind, equity interests,
indebtedness earn-outs, or other deferred payments, consulting or management fees, etc.), Landlord shall be entitled to receive
in cash the then present fair market value of such consideration.

 

SECTION
25

 

25.1        Officer’s
Certificates and Financial Statements.

 

25.1.1           Officer’s
Certificate. At any time and from time to time upon Tenant’s receipt of not less than ten (10) days’ prior written
request by Landlord, Tenant shall furnish to Landlord an Officer’s Certificate certifying (a) that this Lease is unmodified
and in full force and effect, or that this Lease is in full force and effect as modified and setting forth the modifications;
(b) the dates to which the Rent has been paid; (c) whether or not, to the best knowledge of Tenant, Landlord is in default
in the performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of
which Tenant may have knowledge; and (d) responses to such other questions or statements of fact as Landlord, any ground
or underlying lessor, any purchaser or any current or prospective Mortgagee shall reasonably request. Tenant’s failure to
deliver such statement within such time shall constitute an acknowledgment by Tenant that (i) this Lease is unmodified and
in full force and effect except as may be represented to the contrary by Landlord; (ii) Landlord is not in default in the performance
of any covenant, agreement or condition contained in this Lease; and (iii) the other matters set forth in such request, if any,
are true and correct. Any such certificate furnished pursuant to this Section may be relied upon by Landlord and any current or
prospective Mortgagee, ground or underlying lessor or purchaser of the Premises or any portion thereof.

 

    	 	- 35 -	 

     

    

 

25.1.2           Statements.
Tenant shall furnish the following statements to Landlord:

 

(a)          Tenant
shall, as soon as available and in any event within one hundred twenty (120) days after the end of each Fiscal Year, provide to
Landlord annual audited financial statements of Guarantor and Tenant for such Fiscal Year, including therein the balance sheets
of Guarantor and Tenant as of the end of such Fiscal Year and statements of earnings and statements of cash flow of Guarantor
and Tenant for such Fiscal Year, in each case certified in a manner acceptable to Landlord by independent certified public accountants
of recognized national standing selected by Tenant and reasonably acceptable to Landlord (the form of such certification to be
reasonably satisfactory to Landlord), prepared in accordance with GAAP, except as otherwise noted therein, on a basis consistent
with prior periods and fairly presenting the financial condition of Guarantor and Tenant at the end of such Fiscal Year and the
immediately preceding Fiscal Year and in comparative columnar form.

 

(b)          Tenant
shall, as soon as available and in any event within forty-five (45) days after the end of each Quarter, provide to Landlord quarterly
financial statements of the Tenant for such Quarter, including therein the balance sheets of Guarantor and Tenant as of the end
of such Quarter, and statements of earnings and statements of cash flow of Guarantor and Tenant for such Quarter, in each case
certified in a manner acceptable to Landlord by such entity’s chief accounting officer as being prepared in accordance with
GAAP, except as otherwise noted therein, and that such quarterly financial statements fairly present to financial condition of
each of Guarantor and Tenant as of the end of such Quarter and year-to-date.

 

(c)          with
the statements submitted pursuant to Subsections (a) and (b) of this Section, a certificate signed on behalf of Tenant by the
principal financial or accounting officer of Tenant to the effect that no Event of Default specified herein nor any event which,
upon notice or with the passage of time or both, would constitute such an Event of Default has occurred and is continuing, or,
in each case, if any such Event of Default or event has occurred and is continuing, specifying the nature and extent thereof;
and

 

(d)          promptly,
from time to time, such other information regarding the operations, business affairs and financial condition of Tenant as Landlord
may reasonably request, including, without limitation, prompt notice of any Event of Default or any event which, with the passage
of time or the giving of notice, or both, would constitute an Event of Default and prompt notice of any action, suit or proceeding
at law or in equity or by or before any governmental instrumentality or other agency which, if adversely determined, would materially
adversely affect Tenant’s or the Premises’ business, operations, properties, assets or condition, financial or otherwise.

 

    	 	- 36 -	 

     

    

 

25.1.3           Licensing
Information. Tenant shall promptly furnish to Landlord complete copies of all surveys, examinations, inspections, compliance
certificates and similar reports of any kind issued to Tenant or its property manager by any governmental agencies or authorities
having jurisdiction over the licensing of the operation of the Premises that are material to the Premises or their ownership or
operation.

 

SECTION
26

 

26.1        Landlord’s
Right to Inspect and Show the Premises. Tenant shall permit Landlord and its authorized representatives, upon reasonable prior
notice, to (a) inspect the Premises and (b) exhibit the same to prospective purchasers and lenders, and during the last
twelve (12) months of the Term to prospective lessees or managers, in each instance during usual business hours and subject to
any reasonable security, health, safety or confidentiality requirements of Tenant or any Legal Requirement or Insurance Requirement.
Tenant shall cooperate with Landlord in exhibiting the Premises to prospective purchasers, lenders, lessees and managers. Additionally,
Landlord shall have the right to make site visits to the Premises for purposes of inspecting the Premises from time to time, as
Landlord may determine in its reasonable discretion.

 

SECTION
27

 

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

 

SECTION
28

 

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

 

SECTION
29

 

29.1        Acceptance
of Surrender. No surrender to Landlord of this Lease or of the Premises shall be valid or effective unless agreed to and accepted
in writing by Landlord and no act by Landlord or any representative or agent of Landlord, other than such a written acceptance
by Landlord, shall constitute an acceptance of any such surrender.

 

SECTION
30

 

30.1        No
Merger. There shall be no merger of this Lease or of the leasehold estate created hereby by reason of the fact that the same
Person may acquire, own or hold, directly or indirectly, (a) this Lease or the leasehold estate created hereby or any interest
in this Lease or such leasehold estate; and (b) the fee estate in the Premises.

 

    	 	- 37 -	 

     

    

 

SECTION
31

 

31.1         Conveyance
by Landlord. Landlord may, without the consent or approval of Tenant, sell, transfer, assign, convey or otherwise dispose
of the Premises, subject, however, to this Lease. If Landlord or any successor owner of the Premises shall sell, transfer, assign,
convey or otherwise dispose of the Premises other than as security for a debt, Landlord or such successor owner, as the case may
be, shall thereupon be released from all future liabilities and obligations of Landlord with respect to the Premises under this
Lease arising or accruing from and after the date of such sale, transfer, assignment or other disposition and all such future
liabilities and obligations with respect to the Premises shall thereupon be binding upon such purchaser, grantee, assignee or
transferee.

 

SECTION
32

 

32.1         Quiet
Enjoyment. So long as Tenant shall pay the Rent as the same becomes due and shall fully comply with all of the terms of this
Lease and fully perform its obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy the Premises for the
Term, free of any claim or other action by Landlord or anyone claiming by, through or under Landlord, but subject to all liens
and encumbrances of record as of the Commencement Date or created thereafter as permitted hereunder or thereafter consented to
by Tenant.

 

SECTION
33

 

33.1         Notices.
Any notice, consent, approval, demand or other communication required or permitted to be given hereunder (a “notice”)
must be in writing and may be served personally or by U.S. Mail. If served by U.S. Mail, it shall be addressed as follows:

 

	If to Landlord:	____________________________	 
	 	c/o Global Medical REIT, Inc.	 
	 	4800 Montgomery Lane, Suite 450	 
	 	Bethesda, Maryland 20814	 
	 	Fax: 202 380 0891	 
	 	Attn: Alfonzo Leon	 
	 	Fax: 202 380 0891	 
	 	 	 
	with a copy to:	Bradley Arant Boult Cummings LLP
	 	1600 Division Street, Suite 700	 
	 	Nashville, TN 37203	 
	 	Attn: Ann Peldo Cargile	 
	 	Fax: 615-252-2373	 

 

    	 	- 38 -	 

     

    

 

	If to Tenant:	The Surgical Institute of Michigan, LLC
	 	____________________________	 
	 	____________________________	 
	 	Attn.: _______________________	 
	 	Fax: ________________________	 
	 	 	 
	with a copy to:	____________________________	 
	 	____________________________	 
	 	____________________________	 
	 	____________________________	 
	 	____________________________	 
	 	Attn.: _______________________	 
	 	Fax: ________________________	 

 

Any notice which is personally served shall
be effective upon the date of service; any notice given by U.S. Mail shall be deemed effectively given, if deposited in the United
States Mail, registered or certified with return receipt requested, postage prepaid and addressed as provided above, on the date
of receipt, refusal or non-delivery indicated on the return receipt. In lieu of notice by U.S. Mail, either party may send notices
by facsimile or by a nationally recognized overnight courier service which provides written proof of delivery (such as UPS or
Federal Express). Any notice sent by facsimile shall be effective upon confirmation of receipt in legible form, provided that
an original of such facsimile is also sent to the intended addressee by another method approved in this Section, and any notice
sent by a nationally recognized overnight courier shall be effective on the date of delivery to the party at its address specified
above as set forth in the courier’s delivery receipt. Either party may, by notice to the other from time to time in the
manner herein provided, specify a different address for notice purposes.

 

SECTION
34

 

34.1         Appraiser.
If it becomes necessary to determine the Fair Market Value of the Premises for any purpose of this Lease, the same shall be determined
by an independent appraisal firm, in which one or more of the members, officers or principals of such firm are Members of the
Appraisal Institute (or any successor organization thereto) and who are expert in valuation of facilities used for the Primary
Intended Use, as may be reasonably selected by Landlord and approved by Tenant (the “Appraiser”). Landlord
shall cause such Appraiser to determine the Fair Market Value of the Premises as of the relevant date (giving effect to the impact,
if any, of inflation from the date of the Appraiser’s decision to the relevant date) and the determination of such Appraiser
shall be final and binding upon the parties. A written report of such Appraiser shall be delivered and addressed to each of Landlord
and Tenant. To the extent consistent with sound appraisal practice as then existing at the time of any such appraisal, an appraisal
of Fair Market Value for purposes of this Lease shall take into account and shall give appropriate consideration to all three
customary methods of appraisal (i.e., the cost approach, the sales comparison approach and the income approach), and no one method
or approach shall be deemed conclusive simply by reason of the nature of Landlord’s business or because such approach may
have been used for purposes of determining the fair market value of the Premises at the time of acquisition thereof by Landlord.
This provision for determination by appraisal shall be specifically enforceable to the extent such remedy is available under applicable
law, and any determination hereunder shall be final and binding upon the parties except as otherwise provided by applicable law.
Tenant shall pay the fees and expenses of the Appraiser and all other costs and expenses incurred in connection with such appraisal.
If Landlord and Tenant are unable to agree upon the Appraiser within fifteen (15) days after Landlord notifies Tenant of the identity
of Landlord’s selected Appraiser, then the following shall apply:

 

    	 	- 39 -	 

     

    

 

34.1.1           Within
fifteen (15) days after Tenant’s receipt of Landlord’s selected Appraiser, Tenant shall by notice to Landlord appoint
a second Appraiser meeting the requirements set forth above to act on its behalf. In such event, the Appraisers thus appointed
shall, within sixty (60) days after the date of Landlord’s notice of its originally selected Appraiser, proceed to determine
the Fair Market Value of the Premises as of the relevant date (giving effect to the impact, if any, of inflation from the date
of their decision to the relevant date); provided, however, that if Tenant fails to appoint its Appraiser within
the time permitted, or if two Appraisers shall have been so appointed but only one such Appraiser shall have made such determination
within such sixty (60) day period, then the determination of such sole Appraiser shall be final and binding upon the parties.

 

34.1.2           If
the two Appraisers shall have been appointed and shall have made their determinations within the respective requisite periods
set forth above and if the difference between the amounts so determined shall not exceed five percent (5%) of the lesser of such
amounts, then the Fair Market Value of the Premises shall be an amount equal to average of the two appraisals. If the difference
between the amounts so determined shall exceed five percent (5%) of the lesser of such amounts, then such two Appraisers shall
have twenty (20) days to appoint a third Appraiser meeting the above requirements, but if such Appraisers fail to do so, then
either party may request the CPR or AAA (as such terms are defined in Section 44.1.1) or any successor organization(s) thereto
to appoint an Appraiser meeting the above requirements within twenty (20) days of such request, and both parties shall be bound
by any appointment so made within such twenty (20) day period. If no such Appraiser shall have been appointed within such twenty
(20) days or within one hundred five (105) days of the original request for a determination of Fair Market Value, whichever is
earlier, either Landlord or Tenant may apply to any court having jurisdiction to have such appointment made by such court. Any
Appraiser appointed by the original Appraisers, by the CPR or AAA or by such court shall be instructed to one of the two (2) the
Fair Market Values of the Premises, as determined by the original two (2) Appraisers, as the Fair Market Value within thirty
(30) days after appointment of such Appraiser.

 

34.1.3           The
determination by the third Appraiser described above (if applicable), shall be final and binding upon Landlord and Tenant as the
Fair Market Value of the Premises. This provision for determination by appraisal shall be specifically enforceable to the extent
such remedy is available under applicable law, and any determination hereunder shall be final and binding upon the parties except
as otherwise provided by applicable law.

 

34.1.4           If
the foregoing two (2) or three (3) Appraiser system is utilized, then Landlord and Tenant shall each pay the fees and expenses
of the Appraiser appointed by it and each shall pay one-half (1/2) of the fees and expenses of any third Appraiser.

 

    	 	- 40 -	 

     

    

 

SECTION
35

 

35.1         Intentionally
Omitted.

 

SECTION
36

 

36.1         Landlord
May Grant Liens. Without the consent of Tenant, Landlord may, from time to time, directly or indirectly, create or otherwise
cause to exist any Mortgage upon the Premises. This Lease is and at all times shall be subject and subordinate to any Mortgage
that may now or hereafter affect the Premises and to all renewals, modifications, consolidations, replacements and extensions
thereof or any part(s) or portion(s) thereof. This clause shall be self-operative and no further instrument of subordination shall
be required; provided, however, that in confirmation of such subordination, Tenant shall execute promptly any certificate
or document that Landlord or any Mortgagee may request for such purposes. If, in connection with obtaining financing or refinancing
for the Premises, a Mortgagee or prospective Mortgagee shall request reasonable modifications to this Lease as a condition to
such financing or refinancing, Tenant shall not withhold or delay its consent thereto.

 

36.2         Attornment.
If Landlord’s interest in the Premises is sold, conveyed or terminated upon the exercise of any remedy provided for in any
Mortgage, or otherwise by operation of law: (a) at the new owner’s option, Tenant shall attorn to and recognize the
new owner as Tenant’s Landlord under this Lease or enter into a new lease substantially in the form of this Lease with the
new owner, and Tenant shall take such actions to confirm the foregoing within ten (10) days after request; and (b) the new
owner shall not be (i) liable for any act or omission of Landlord under this Lease occurring prior to such sale, conveyance
or termination, (ii) subject to any offset, abatement or reduction of rent because of any default of Landlord under this
Lease occurring prior to such sale, conveyance or termination, (iii) bound by any previous modification or amendment to this Lease
or any previous prepayment of more than one month’s rent, unless such modification, amendment or prepayment shall have been
approved in writing by the Mortgagee or, in the case of such prepayment, such prepayment of rent has actually been delivered to
such successor lessor, or (iv) liable for any security deposit or other collateral deposited or delivered to Landlord pursuant
to this Lease unless such security deposit or other collateral has actually been delivered to such successor lessor.

 

36.3         Compliance
with Mortgage Documents.

 

 36.3.1           With
respect to any Mortgages and any refinancing of any Mortgage, prior to the execution and delivery of any Mortgage Documents relating
thereto, Landlord shall provide copies of the same to Tenant for Tenant’s review. Tenant acknowledges that any Mortgage
Documents executed by Landlord will impose certain obligations on the “Borrower” thereunder to comply with or cause
the operator and/or lessee of the Premises to comply with all representations, covenants and warranties contained therein relating
to the Premises and the operator and/or lessee thereof, including, covenants relating to (a) the maintenance and repair of the
Premises; (b) maintenance and submission of financial records and accounts of the operation of the Premises and related financial
and other information regarding the operator and/or lessee of the Premises; (c) the procurement of insurance policies with respect
to the Premises; and (d) without limiting the foregoing, compliance with all Legal Requirements relating to the Premises and the
operation thereof for their Primary Intended Use. For so long as any Mortgages encumber the Premises, or any portion thereof,
Tenant covenants and agrees, at its sole cost and expense and for the express benefit of Landlord, to operate the Premises
in strict compliance with the terms and conditions of the Mortgage Documents (other than payment of any indebtedness evidenced
or secured thereby) and to timely perform all of the obligations of Landlord relating thereto), or to the extent that any of such
duties and obligations may not properly be performed by Tenant, Tenant shall cooperate with and assist Landlord in the performance
thereof (other than payment of any indebtedness evidenced or secured thereby); provided, however, that Landlord shall use
good faith efforts to ensure that the duties and obligations imposed upon Tenant by the Mortgage Documents relating thereto and
this Section entered into after the Commencement Date are not materially more burdensome to Tenant than Tenant’s
obligations to Landlord under this Lease

 

    	 	- 41 -	 

     

    

 

36.3.2           Without
limiting Tenant’s obligations pursuant to any other provision of this Section, during the Term of this Lease, Tenant acknowledges
and agrees that, except as expressly provided elsewhere in this Lease, it shall undertake at Tenant’s own cost and expense
the performance of any and all repairs, replacements, capital improvements, maintenance items and all other requirements relating
to the condition of the Premises which are required by any Mortgage Documents, and Tenant shall be solely responsible and hereby
covenants to fund and maintain any and all impound, escrow or other reserve or similar accounts required under any Mortgage Documents
as security for or otherwise relating to any operating or capital expenses of the Premises, including any capital repair or replacement
reserves and/or impounds or escrow accounts for Impositions or insurance premiums (a “Mortgage Reserve Account”);
provided, however, that any amount deposited by Tenant in any Mortgage Reserve Account pursuant to this Subsection shall
be credited (a) in the case of any Impositions or insurance premiums, against any amounts otherwise required to be deposited or
impounded by Tenant with Landlord pursuant to Section 4.4 hereof; and (b) in the case of any capital repair or replacement reserves,
any amounts otherwise required to be deposited or impounded pursuant Section 35 hereof. During the Term of this Lease and provided
that no Event of Default shall have occurred and be continuing hereunder, Tenant shall, subject to the terms and conditions of
the Mortgage Reserve Account and the requirements of the Mortgagee(s) thereunder, have access to and the right to apply or use
(including for reimbursement) to the same extent of Landlord all monies held in the Mortgage Reserve Account for the purposes
and subject to the limitations for which the Mortgage Reserve Account is maintained, and Landlord agrees to reasonably cooperate
with Tenant in connection therewith; provided, however, that notwithstanding terms for release or application of any amounts
held in any Mortgage Reserve Account, the right of Tenant to apply or use (including for reimbursement) the same shall be subject
further to the following: (i) in the case of any amounts deposited in a Mortgage Reserve Account on account of Impositions or
taxes, the provisions of Section 4.4 as if such amounts were deposited or impounded directly with Landlord; and (ii) in the case
of an amounts deposited in a Mortgage Reserve Account on account of any capital repairs or replacements, the provisions of Section
35.1 as if such amounts were deposited directly in the Replacement Reserve.

 

    	 	- 42 -	 

     

    

 

SECTION
37

 

37.1         Hazardous
Substances. Tenant shall not allow any Hazardous Substance to be located, stored, disposed of, released or discharged in,
on, under or about the Premises or incorporated in the Premises; provided, however, that Hazardous Substances may be brought,
kept, used or disposed of in, on or about the Premises in quantities and for purposes similar to those brought, kept, used or
disposed of in, on or about similar facilities used for purposes similar to the Primary Intended Use and which are brought, kept,
used and disposed of in strict compliance with Legal Requirements.

 

37.2         Notices.
Tenant shall provide to Landlord promptly, and in any event immediately upon Tenant’s receipt thereof, a copy of any notice
or notification with respect to (a) any violation of a Legal Requirement relating to Hazardous Substances located in, on, or under
the Premises; (b) any enforcement, cleanup, removal, or other governmental or regulatory action instituted, completed or threatened
with respect to the Premises; (c) any claim made or threatened by any Person against Tenant or the Premises relating to damage,
contribution, cost recovery, compensation, loss, or injury resulting from or claimed to result from any Hazardous Substance; and
(d) any reports made to any federal, state or local environmental agency arising out of or in connection with any Hazardous Substance
in, on, under or removed from the Premises, including any complaints, notices, warnings or asserted violations in connection therewith.

 

37.3         Remediation.
If Tenant becomes aware of a violation of any Legal Requirement relating to any Hazardous Substance in, on, under or about the
Premises or any adjacent property thereto, or if Tenant, Landlord or the Premises becomes subject to any order of any federal,
state or local agency to repair, close, detoxify, decontaminate or otherwise remediate the Premises, Tenant shall immediately
notify Landlord of such event and, at its sole cost and expense, cure such violation or effect such repair, closure, detoxification,
decontamination or other remediation. If Tenant fails to implement and diligently pursue any such cure, repair, closure, detoxification,
decontamination or other remediation, Landlord shall have the right, but not the obligation, to carry out such action and to recover
from Tenant all of Landlord’s costs and expenses incurred in connection therewith.

 

37.4         Indemnity.
Tenant shall indemnify, defend, protect, save, hold harmless, and reimburse Landlord for, from and against any and all costs,
losses (including, losses of use or economic benefit or diminution in value), liabilities, damages, assessments, lawsuits, deficiencies,
demands, claims and expenses (collectively, “Environmental Costs”) (whether or not arising out of third-party
claims and regardless of whether liability without fault is imposed, or sought to be imposed, on Landlord) incurred in connection
with, arising out of, resulting from or incident to, directly or indirectly, before or during the Term (a) the production, use,
generation, storage, treatment, transporting, disposal, discharge, release or other handling or disposition of any Hazardous Substances
from, in, on or about the Premises (collectively, “Handling”); (b) the presence of any Hazardous Substances
in, on, under or about the Premises and (c) the violation of any Legal Requirements (including Environmental Laws). “Environmental
Costs” include interest, costs of response, removal, remedial action, containment, cleanup, investigation, design, engineering
and construction, damages (including actual, consequential and punitive damages) for personal injuries and for injury to, destruction
of or loss of property or natural resources, relocation or replacement costs, penalties, fines, charges or expenses, attorney’s
fees, expert fees, consultation fees, and court costs, and all amounts paid in investigating, defending or settling any of the
foregoing. Without limiting the scope or generality of the foregoing, Tenant expressly agrees to reimburse Landlord for any and
all costs and expenses incurred by Landlord:

 

    	 	- 43 -	 

     

    

 

37.4.1           In
investigating any and all matters relating to the Handling of any Hazardous Substances, in, on, from, under or about the Premises;

 

37.4.2           In
bringing the Premises into compliance with all Legal Requirements; and

 

37.4.3           Removing,
treating, storing, transporting, cleaning-up and/or disposing of any Hazardous Substances used, stored, generated, released or
disposed of in, on, from, under or about the Premises or offsite.

 

If any claim is made hereunder, Tenant agrees
to pay such claim promptly, and in any event to pay such claim within thirty (30) calendar days after receipt by Tenant of notice
thereof. If any such claim is not so paid and Landlord is ultimately found or agrees to be responsible therefore, Tenant agrees
also to pay interest on the amount paid from the date of the first notice of such claim, at the Overdue Rate.

 

37.5         Environmental
Inspection. If Landlord reasonably believes the Premises to be in violation of applicable Environmental Laws, then (a) Landlord
shall have the right, from time to time, and upon not less than five (5) days’ written notice to Tenant, except in the case
of an emergency in which event no notice shall be required, to conduct an inspection of the Premises and all Capital Additions
to determine the existence or presence of Hazardous Substances on or about the Premises or any such Capital. Additions; (b) Landlord
shall have the right to enter and inspect the Premises and all Capital Additions, conduct any testing, sampling and analyses it
deems necessary and shall have the right to inspect materials brought into the Premises or any such Capital Additions; (c) Landlord
may retain such experts as it deems necessary or desirable to conduct the inspection, perform the tests referred to herein, and
to prepare a written report in connection therewith; and (d) all costs and expenses incurred by Landlord under this Section shall
be paid on demand as Additional Charges by Tenant to Landlord. Failure to conduct an environmental inspection or to detect unfavorable
conditions if such inspection is conducted shall in no fashion be intended as a release of any liability for environmental conditions
subsequently determined to be associated with or to have occurred during Tenant’s tenancy. Tenant shall remain liable for
any environmental condition related to or having occurred during its tenancy regardless of when such conditions are discovered
and regardless of whether or not Landlord conducts an environmental inspection at the termination of this Lease. The obligations
set forth in this Section shall survive the expiration or earlier termination of the Lease.

 

SECTION
38

 

38.1         Memorandum
of Lease. Landlord and Tenant shall, promptly upon the request of either, enter into one or more short form memoranda of this
Lease, each in form suitable for recording under the laws of the applicable State. Tenant shall pay all costs and expenses of
recording any such memoranda and shall fully cooperate with Landlord in removing from record any such memoranda upon the expiration
or earlier termination of the Term.

 

    	 	- 44 -	 

     

    

 

SECTION
39

 

39.1        Sale
of Assets. Notwithstanding any other provision of this Lease, Landlord shall not be required to (a) sell or transfer
the Premises, or any portion thereof, which is a real estate asset as defined in Section 856(c)(5)(B) of the Code, or functionally
equivalent successor provision, of the Code, to Tenant if Landlord’s counsel advises Landlord that such sale or transfer
may not be a sale of property described in Section 857(b)(6)(C), or functionally equivalent successor provision, of the Code;
or (b) sell or transfer the Premises, or any portion thereof, to Tenant if Landlord’s counsel advises Landlord that such
sale or transfer could result in an unacceptable amount of gross income for purposes of the Ninety-Five percent (95%) gross income
test contained in Section 856(c)(2), or functionally equivalent successor provision, of the Code. If Tenant has the right
or obligation to purchase the property pursuant to the terms herein, and if Landlord determines not to sell such property pursuant
to the above sentence, then Tenant shall purchase such property, upon and subject to all applicable terms and conditions set forth
in this Lease, including the provisions of Section 40.1, at such time as the transaction, upon the advice of Landlord’s
counsel, would be a sale of property (to the extent the Premises is a real estate asset) described in Section 857(b)(6)(C), or
functionally equivalent successor provision, of the Code, and would not result in an unacceptable amount of gross income to Landlord
for purposes of the Ninety-Five Percent (95%) gross income test contained in Section 856(c)(2), or functionally equivalent successor
provision of the Code and until such time Tenant shall lease the Premises and all Capital Additions from Landlord for the then
current Minimum Rent under this Lease.

 

SECTION
40

 

40.1        [OPTIONAL]

 

Option to Purchase.

 

40.1.1           Exercise
of Option. Provided no Event of Default, or event which, with notice or lapse of time or both, would constitute an Event of
Default, has occurred and is continuing under this Lease, Landlord hereby grants to Tenant the option to purchase, on the Option
Closing Date, all (but not less than all) of the Premises at the Option Repurchase Price. Subject to the foregoing, such option
shall be exercised, if at all, upon written notice from Tenant to Landlord given not earlier than two hundred seventy (270) days
prior to the Option Closing Date. Such option shall be a one-time option occurring on the Option Closing Date. In no event shall
Tenant be entitled to exercise such option prior to or after the time period described above.

 

40.1.2           Closing
Funds. On or before the Option Closing Date, Tenant shall pay to Landlord, in cash or other immediately available funds, the
Option Repurchase Price plus any other sums payable by Tenant pursuant to the provisions hereof.

 

    	 	- 45 -	 

     

    

 

40.1.3           Close
of Escrow. If Tenant purchases the Premises pursuant to this Section, Landlord shall, upon receipt from Tenant of the Option
Repurchase Price, together with full payment of any unpaid Rent due and payable with respect to any period ending on or before
the Option Purchase Date, deliver to Tenant an appropriate special or limited warranty deed conveying the entire interest of Landlord
in and to the Premises to Tenant free and clear of all encumbrances other than (a) those that Tenant has agreed hereunder
to pay or discharge; (b) those liens and encumbrances which were in effect on the date of conveyance of such Premises to
Landlord; and (c) any other encumbrances permitted hereunder to be imposed on the Premises. All expenses of such conveyance,
including the cost of title insurance, attorneys’ fees incurred by Landlord in connection with such conveyance and release,
transfer taxes and recording and escrow fees, shall be paid by Tenant.

 

40.1.4           Landlord’s
Election of 1031 Exchange. In the event that Tenant exercises its option to purchase the Premises as provided in this Section,
Landlord may, elect to sell the Premises or its interests therein to Tenant in the form of a simultaneous, tax-deferred forward
or reverse exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (“1031 Exchange”).
In the event that Landlord shall so elect, Landlord shall give written notice to Tenant of such election and Tenant shall fully
cooperate with any such 1031 Exchange, including but not limited to executing and delivering additional documents reasonably requested
or approved by Landlord; provided that Tenant shall not be required to incur any additional costs or liabilities or financial
obligation as a consequence of any of the foregoing exchange transactions.

 

40.1.5           Right
of First Refusal to Provide Financing. In the event Tenant desires to develop or recapitalize any portion of the Land, including
but not limited to construction of medical office building(s), outpatient treatment facilities, expansions or additions to the
existing facility, or parking garage(s) (an “Additional Facility”). Landlord (and/or its Affiliates) shall
have a right of first refusal to provide such financing by an amendment of this Lease to provide such additional capital, or a
separate, market-competitive financial instrument. In the event Tenant desires to construct the Additional Facility, Tenant shall
seek bids (in the form of commitment letters or letters of intent) (each, a “Financing Bid”) from third party
lenders for such financing (which financing must be for a minimum term of five (5) years) and shall deliver to Landlord a copy
of any Financing Bid that Tenant desires to accept. Within thirty (30) days after Landlord’s receipt of such Financing Bid,
Landlord may elect to provide the same financing to Tenant in the same amount, and upon the same terms, as are set forth in such
Financing Bid. Such election shall be made if at all, by Landlord (or its Affiliates) providing written notice of such election
to Tenant within said thirty (30) day period after Landlord’s receipt of such Financing Bid. If Landlord makes such election
in a timely manner, Landlord shall be entitled to provide such financing to Tenant. If Landlord fails to make such election in
a timely manner, Landlord shall be deemed to have waived its right to provide such financing, and Tenant may obtain such financing
from other sources. If Landlord does not elect to be the financing source for such Additional Facility, Tenant will ground lease
the portion of the Land for such Additional Facility from Landlord at prevailing market rates that meet with Landlord’s
approval. All such Additional Facilities shall be subject to the reasonable approval of Landlord so as not to impair the operation
of the premises for the Primary Intended Use.

 

    	 	- 46 -	 

     

    

 

SECTION
41

 

41.1         Authority.
If Tenant is a corporation, limited liability company, trust, or partnership, Tenant and each individual executing this Lease
on behalf of Tenant represent and warrant that each is duly authorized to execute and deliver this Lease on behalf of Tenant and
shall concurrently with the execution and delivery of this Lease to Landlord deliver to Landlord evidence of such authority satisfactory
to Landlord.

 

SECTION
42

 

42.1         Attorneys’
Fees. If Landlord or Tenant brings an action or other proceeding (including an arbitration pursuant to Section 44) against
the other to enforce any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Lease, or by
reason of any breach or default hereunder or thereunder, the party prevailing in any such action or proceeding and any appeal
thereupon shall be paid all of its costs and reasonable attorneys’ fees incurred therein. In addition to the foregoing and
other provisions of this Lease that specifically require Tenant to reimburse, pay or indemnify against Landlord’s attorneys’
fees, Tenant shall pay, as Additional Charges, all of Landlord’s reasonable attorneys’ fees incurred in connection
with the administration or enforcement of this Lease, including attorneys’ fees incurred in connection with Tenant’s
exercise of its option to purchase the Premises or the renewal of this Lease for any Extended Term, the review of any letters
of credit, the review, negotiation or documentation of any subletting, assignment, or management arrangement or any consent requested
in connection therewith, and the collection of past due Rent.

 

SECTION
43

 

43.1         Brokers.
Tenant warrants that it has not had any contact or dealings with any Person or real estate broker (except for the Tenant’s
broker described in the Purchase Contract, which broker shall not be entitled to a separate commission upon the rents payable
pursuant to this Lease) which would give rise to the payment of any fee or brokerage commission in connection with this Lease
and Tenant shall indemnify, protect, hold harmless and defend Landlord from and against any liability with respect to any fee
or brokerage commission arising out of any act or omission of Tenant. Landlord warrants that it has not had any contact or dealings
with any Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with
this Lease, and Landlord shall indemnify, protect, hold harmless and defend Tenant from and against any liability with respect
to any fee or brokerage commission arising out of any act or omission of Landlord.

 

    	 	- 47 -	 

     

    

 

SECTION
44

 

44.1        Submission
to Arbitration.

 

44.1.1           Except
as provided below, any controversy, dispute or claim of whatsoever nature arising out of, in connection with, or in relation to
the interpretation, performance or breach of this Lease, including any claim based on contract, tort or statute, shall be determined
by final and binding, confidential arbitration in accordance with the then current CPR Institute for Dispute Resolution Rules
for Non-Administered Arbitration of Business Disputes (“CPR”), by a sole arbitrator mutually selected by Landlord
and Tenant from among the CPR Panel of Distinguished Neutrals; provided, however, that if the CPR (or any successor organization
thereto) no longer exists, then such arbitration shall be administered by the American Arbitration Association (“AAA”)
in accordance with its then-existing Commercial Arbitration Rules, and the sole arbitrator shall be selected in accordance with
such AAA rules. Any arbitration hereunder shall be governed by the United States Arbitration Act, 9 U.S.C. 1-16 (or any successor
legislation thereto), and judgment upon the award rendered by the arbitrator may be entered by any state or federal court having
jurisdiction thereof. If Landlord and Tenant are not able to agree on an arbitrator, then an arbitrator shall be appointed by
the CPR or AAA upon application by either party. The cost of the arbitrator and the expenses relating to the arbitration (exclusive
of legal fees) shall be borne equally by Landlord and Tenant unless otherwise specified in the award of the arbitrator. Such fees
and costs paid or payable to the arbitrator shall be included in “costs and reasonable attorneys’ fees” for
purposes of Section 42.1 and the arbitrator shall specifically have the power to award to the prevailing party pursuant to
such Section 42.1 such party’s costs and expenses incurred in such arbitration, including fees and costs paid to the
arbitrator.

 

44.1.2           The
provisions of this Section shall not apply to:

 

(a)          Any
unlawful detainer or other similar summary or expedited proceeding for ejectment or recovery of possession of the Premises instituted
by Landlord in accordance with applicable Legal Requirements as the result of an Event of Default or alleged Event of Default
by Tenant pursuant to this Lease, and any compulsory counterclaim of Tenant with respect thereto. In addition, if permitted by
applicable Legal Requirements, Landlord shall be entitled in connection with any such proceeding to seek any damages to which
it is entitled at law, including those set forth in Section 16.

 

(b)          Any
specific controversy, dispute, question or issue as to which this Lease specifically provides another method of determining such
controversy, dispute, question or issue and provides that a determination pursuant to such method is final and binding, unless
both Landlord and Tenant agree in writing to waive such procedure and proceed instead pursuant to this Section.

 

(c)          Any
request or application for an order or decree granting any provisional or ancillary remedy (such as a temporary restraining order
or injunction) with respect to any right or obligation of either party to this Lease, and any preliminary determination of the
underlying controversy, dispute, question or issue as is required to determine whether or not to grant such relief. A final and
binding determination of such underlying controversy, dispute, question or issue shall be made by an arbitration conducted pursuant
to this Section after an appropriate transfer or reference to the arbitrator selected pursuant to this Section upon motion or
application of either party hereto. Any ancillary or provisional relief which is granted pursuant to this clause (c) shall
continue in effect pending an arbitration determination and entry of judgment thereon pursuant to this Section.

 

    	 	- 48 -	 

     

    

 

SECTION
45

 

45.1         Miscellaneous.

 

45.1.1           Survival.
Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities and indemnities of, Tenant
or Landlord arising prior to the expiration or earlier termination of the Term shall survive such expiration or termination. In
addition, all claims against, and all liabilities and indemnities hereunder of, Tenant shall continue in full force and effect
and in favor of the Landlord named herein and its successors and assigns, notwithstanding any conveyance of the Premises to Tenant.

 

45.1.2           Severability.
If any term or provision of this Lease or any application thereof shall be held invalid or unenforceable, the remainder of this
Lease and any other application of such term or provision shall not be affected thereby.

 

45.1.3           Non-Recourse.
Tenant specifically agrees to look solely to the Premises (and any proceeds thereof) for recovery of any judgment from Landlord.
It is specifically agreed that no constituent partner in Landlord or officer, director or employee of Landlord shall ever be personally
liable for any such judgment or for the payment of any monetary obligation to Tenant. The provision contained in the foregoing
sentence is not intended to, and shall not limit any right that Tenant might otherwise have to obtain injunctive relief against
Landlord or any action not involving the personal liability of Landlord. Furthermore, except as otherwise expressly provided herein,
in no event shall Landlord ever be liable to Tenant for any indirect or consequential damages suffered by Tenant from whatever
cause.

 

45.1.4           Licenses
and Operation Transfer Agreements. Upon the expiration or earlier termination of the Term (unless the Premises has been purchased
by Tenant), Tenant shall use its best efforts to transfer to Landlord or Landlord’s nominee the Premises in a fully operational
condition and shall cooperate with Landlord or Landlord’s designee or nominee in connection with the processing by Landlord
or Landlord’s designee or nominee of any applications for all licenses, operating permits and other governmental authorization,
all contracts, including contracts with governmental or quasi-governmental entities, business records, data, [patient and resident]
records, and [patient and resident] trust accounts, which may be necessary or useful for the operation of the Premises;
provided that the costs and expenses of any such transfer or the processing of any such application shall be paid by Landlord
or Landlord’s designee or nominee. Tenant shall not commit any act or be remiss in the undertaking of any act that would
jeopardize the licensure or certification of the Premises, and Tenant shall comply with all reasonable requests for an orderly
transfer of the same upon the expiration or early termination of the Term. Without limiting the generality of the foregoing, if
requested by Landlord or a proposed replacement operator for the Premises, Tenant hereby agrees to enter into a reasonable operations
transfer agreement with such replacement operator as is customary in the transfer to a new operator of the operations of a facility
similar to the Premises. Tenant shall not unreasonably withhold, condition or delay its consent to entering into any interim subleases
or management agreements as may be necessary to effectuate an early transfer of the operations of the Premises prior to the time
that such replacement operator holds all licenses and permits from all applicable governmental authorities with jurisdiction necessary
to operate the Premises for their Primary Intended Use. In addition, upon request, Tenant shall promptly deliver copies of all
books and records relating to the Premises and operations thereon to Landlord or Landlord’s designee or nominee. Tenant
shall indemnify, defend, protect and hold harmless Landlord from and against any loss, damage, cost or expense incurred by Landlord
or Landlord’s designee or nominee in connection with the correction of any and all deficiencies of a physical nature identified
by any governmental authority responsible for licensing the Premises in the course of any change of ownership inspection and audit.

 

    	 	- 49 -	 

     

    

 

45.1.5           Successors
and Assigns. This Lease shall be binding upon Landlord and its successors and assigns and, subject to the provisions of Section
24.1, upon Tenant and its successors and assigns.

 

45.1.6           Termination
Date. If this Lease is terminated by Landlord or Tenant under any provision hereof, and upon the expiration of the Term (collectively,
the “termination date”), the following shall pertain:

 

(a)          Tenant
shall vacate and surrender the Premises and all Tenant’s Personal Property to Landlord in the condition required by this
Lease. Prior to such vacation and surrender, Tenant shall remove any items which Tenant is permitted or required to remove hereunder.
Tenant shall, at Tenant’s cost, repair any damage to such Premises and/or any Tenant’s Personal Property caused by
such vacation and/or removal of any items which Tenant is required or permitted hereunder to remove. Any items that Tenant is
permitted to remove but which Tenant fails to remove prior to the surrender to Landlord of such Premises shall be deemed abandoned
by Tenant, and Landlord may retain or dispose of the same as Landlord sees fit without claim by Tenant thereto or to any proceeds
thereof. If Landlord elects to remove and dispose of any such items abandoned by Tenant, the cost of such removal and disposal
shall be an Additional Charge payable by Tenant to Landlord upon demand.

 

(b)          Without
limiting any other provision of this Lease, upon any such termination or expiration of this Lease, the following shall pertain:

 

(i)          Tenant
agrees to defend, protect, indemnify, defend and hold harmless Landlord from and against any and all claims, costs, losses, expenses,
damages, actions, and causes of action for which Tenant is responsible under this Lease (including Tenant’s indemnification
obligations under this Lease that accrue or have accrued on or before the termination date.

 

(ii)         Tenant
shall remain liable for the cost of all utilities used in or at the Premises through the termination date and accrued and unpaid,
whether or not then billed, as of the termination date until full payment thereof by Tenant. Tenant shall obtain directly from
the companies providing such services closing statements for all services rendered through the termination date and shall promptly
pay the same. If any utility statement with respect to such Premises includes charges for a period partially prior to and partially
subsequent to the termination date, such charges shall be prorated as between Landlord and Tenant, with Tenant responsible for
the portion thereof (based upon a fraction the numerator of which is the number of days of service on such statement through the
termination date and the denominator of which is the total number of days of service on such statement) through the termination
date and Landlord shall be responsible for the balance. The party receiving any such statement which requires proration hereunder
shall promptly pay such statement and the other party shall, within ten (10) days after receipt of a copy of such statement, remit
to the party paying the statement any amount for which such other party is responsible hereunder.

 

    	 	- 50 -	 

     

    

 

(iii)        Tenant
shall remain responsible for any and all Impositions imposed against the Premises, the Personal Property with a lien date prior
to the termination date (irrespective of the date of billing therefor) and for its pro rata share of any Impositions imposed in
respect of the tax-fiscal period during which the Term terminates as provided in Section 4.1.6, and Tenant shall indemnify and
hold Landlord harmless with respect to any claims for such Impositions or resulting from nonpayment thereof.

 

(iv)        Tenant
shall (A) execute all documents and take any actions reasonably necessary to cause the transfer to Landlord of all of Tenant’s
Personal Property not owned by Landlord, as provided in Section 6.3, in each case free of any encumbrance, as provided in Section
6.3, and (C) comply with its covenants set forth in Section 45.1.4.

 

(v)         Tenant
shall observe any covenant or agreement of Tenant in this Lease that is intended to or expressly provides that it shall survive
the expiration or sooner termination of this Lease.

 

45.1.7           Governing
Law. THIS LEASE WAS NEGOTIATED IN THE STATE IN WHICH THE PREMISES ARE LOCATED, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY. ACCORDINGLY, IN ALL RESPECTS THIS LEASE (AND ANY
AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL
LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED (WITHOUT REGARD OF PRINCIPLES OR CONFLICTS OF LAW) AND ANY APPLICABLE LAWS
OF THE UNITED STATES OF AMERICA.

 

45.1.8           Waiver
of Trial by Jury. EACH OF LANDLORD AND TENANT ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT
TO ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTION OF THE UNITED STATES, AND THE LAW OF THE STATE IN WHICH THE PREMISES ARE
LOCATED. EACH OF LANDLORD AND TENANT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION (A) ARISING UNDER THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR (B) IN ANY MANNER CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF LANDLORD AND TENANT WITH RESPECT TO THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO
THE TERMS HEREOF) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS
RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREINAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT
OR OTHERWISE; EACH OF LANDLORD AND TENANT HEREBY AGREES AND CONSENTS THAT, SUBJECT TO SECTION 44, ANY SUCH CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER PARTY MAY FILE A COPY OF THIS SECTION WITH
ANY COURT AS CONCLUSIVE EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

    	 	- 51 -	 

     

    

 

45.1.9           Tenant
Counterclaim and Equitable Remedies. Tenant hereby waives the right to interpose counterclaim (other than compulsory counterclaims)
in any summary proceeding instituted by Landlord against Tenant in any court or in any action instituted by Landlord in any court
for unpaid Rent under this Lease. In the event that Tenant claims or asserts that Landlord has violated or failed to perform a
covenant of Landlord not to unreasonably withhold or delay Landlord’s consent or approval hereunder, or in any case where
Landlord’s reasonableness in exercising its judgment is in issue, Tenant’s sole remedy shall be an action for specific
performance, declaratory judgment or injunction, and in no event shall Tenant be entitled to any monetary damages for a breach
of such covenant, and in no event shall Tenant claim or assert any claims for monetary damages in any action or by way of set-off
defense or counterclaim, and Tenant hereby specifically waives the right to any monetary damages or other remedies in connection
with any such claim or assertion.

 

45.1.10         Entire
Agreement. This Lease, the Exhibits hereto and thereto and such other documents as are contemplated hereunder or thereunder,
constitutes the entire agreement of the parties with respect to the subject matter hereof, and may not be changed or modified
except by an agreement in writing signed by the parties. Landlord and Tenant hereby agree that all prior or contemporaneous oral
understandings, agreements or negotiations relative to the leasing of the Premises are merged into and revoked by this Lease.

 

45.1.11         Headings.
All titles and headings to sections, subsections, paragraphs or other divisions of this Lease are only for the convenience of
the parties and shall not be construed to have any effect or meaning with respect to the other contents of such sections, subsections,
paragraphs or other divisions, such other content being controlling as to the agreement among the parties hereto.

 

45.1.12         Counterparts.
This Lease may be executed in any number of counterparts, each of which shall be a valid and binding original, but all of which
together shall constitute one and the same instrument. Executed counterparts of this Lease or any amendment hereto may be delivered
by electronic or facsimile transmission.

 

45.1.13         Joint
and Several. If more than one Person is the Tenant under this Lease, the liability of such Persons under this Lease shall
be joint and several.

 

45.1.14         Interpretation.
Both Landlord and Tenant have been represented by counsel and this Lease and every provision hereof has been freely and fairly
negotiated. Consequently, all provisions of this Lease shall be interpreted according to their fair meaning and shall not be strictly
construed against any party.

 

45.1.15         Time
of Essence. Time is of the essence of this Lease and each provision hereof in which time of performance is established.

 

    	 	- 52 -	 

     

    

 

45.1.16         Further
Assurances. The parties agree to promptly sign all documents reasonably requested to give effect to the provisions of this
Lease.

 

SECTION
46

 

46.1         Provisions
Relating to Treatment of Lease. Landlord and Tenant hereby acknowledge and agree that this Lease shall be treated as an operating
lease for all purposes and not as a synthetic lease, financing lease or loan, and that Landlord shall be entitled to all the benefits
of ownership of the Premises, including depreciation for all federal, state and local tax purposes.

 

SECTION
47

 

47.1         Covenants
with Respect to Operations and Fundamental Changes of Tenant. Tenant hereby represents, warrants and covenants as of the date
hereof and until the expiration or earlier termination of this Lease, that Tenant:

 

47.1.1           will
not (and will not permit any limited or general partner, member or shareholder to) amend, modify or otherwise change its partnership
certificate, partnership agreement, articles of incorporation, bylaws, certificate of formation, limited liability company agreement,
operating agreement, articles of organization, or other formation agreement or document, as applicable, in any material term or
manner, or in a manner which adversely affects Tenant’s existence as a single purpose entity without the prior written consent
of Landlord;

 

47.1.2           to
the full extent permitted by law, will not liquidate or dissolve (or suffer any liquidation or dissolution), or enter into any
transaction of merger or consolidation, or acquire by purchase or otherwise all or substantially all the business or assets of,
or any stock or other evidence of beneficial ownership of, any entity without the prior written consent of Landlord;

 

47.1.3           has
not and will not guarantee, pledge its assets for the benefit of, or otherwise become liable, on or in connection with, any obligation
of any other Person without the prior written consent of Landlord;

 

47.1.4           will
not own any asset other than (a) its leasehold interest in the applicable Premises; and (b) incidental personal property necessary
for the operation of the applicable Premises without the prior written consent of Landlord;

 

47.1.5           is
not engaged and will not engage, either directly or indirectly, in any business other than the lease, management and operation
of the applicable Premises without the prior written consent of Landlord;

 

47.1.6           has
maintained and will maintain an arm’s length relationship with its Affiliates and its shareholders and any other parties
furnishing services to it;

 

47.1.7           has
not incurred and will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation) (other
than (a) accounts payable incurred in the ordinary course of business; and (b) equipment leases not exceeding Fifty Thousand Dollars
($50,000.00);

 

    	 	- 53 -	 

     

    

 

47.1.8           has
not made and will not make any loans or advances to any third party (including any Affiliate);

 

47.1.9           has
done or caused to be done and will do all things necessary to preserve its existence, and will observe all formalities applicable
to it and will do all things necessary to maintain its identity as an entity separate and distinct from its Affiliates;

 

47.1.10         will
conduct and operate its business in its own name and as presently conducted and operated;

 

47.1.11         will
maintain financial statements, books and records and bank accounts separate from those of its Affiliates, including, without limitation,
its general partners, shareholders or members, as applicable;

 

47.1.12         will
be, and at all times will hold itself out to the public as, a legal entity separate and distinct from any other entity (including,
without limitation, any Affiliate or any partner, member or shareholder of Tenant);

 

47.1.13         will
file its own tax returns (except to the extent it is treated as a division of another taxpayer for tax purposes) and pay any taxes
so required to be paid under applicable law; provided, however, that so long as Tenant’s tax liability and its income and
expenses are readily determinable based on a review of Tenant’s books and records, it may file consolidated tax returns
(provided that Tenant shall maintain sufficient books and records to determine its separate tax obligations for any particular
reporting periods);

 

47.1.14         will
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations;

 

47.1.15         will
not commingle the funds and other assets of Tenant with those of any general partner, shareholder, member, Affiliate, principal
or any other Person;

 

47.1.16         has
and will maintain its assets in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual
assets from those of any Affiliate or any other Person;

 

47.1.17         does
not and will not hold itself out to be responsible for the debts or obligations of any other Person;

 

47.1.18         will
not hold title to Tenant’s assets other than in Tenant’s name;

 

47.1.19         will
deposit all of its funds in checking accounts, savings accounts, time deposits or certificates of deposit in its own name or invest
such funds in its own name;

 

    	 	- 54 -	 

     

    

 

47.1.20         will
participate in the fair and reasonable allocation of any and all overhead expenses and other common expenses for facilities, goods
or services provided to multiple entities;

 

47.1.21         without
limiting any other provision of this Lease, has obtained and will maintain all consents, licenses, permits, approvals or authorizations
from governmental authorities or third parties that are necessary for the operation of such Premises for its Primary Intended
Use, including all health care licenses and permits.

 

[Signature pages follow]

 

    	 	- 55 -	 

     

    

 

	 	 	“TENANT”
	 	 	 
	WITNESSED:	 	THE SURGICAL INSTITUTE OF MICHIGAN, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 
	 	 	By:	                
	Witness	 	Name:	 
	 	 	Title:	 
	 	 	 
	Witness	 	 

 

    	 	- 56 -	 

     

    

 

IN WITNESS WHEREOF, the
parties have caused this lease to be executed and attested by their respective officers thereunto duly authorized.

 

	 	 	“LANDLORD”
	 	 	 
	WITNESSED:	 	_____________________,
	 	 	a Delaware limited liability company
	 	 	By:	                    
	Witness	 	Name:	 
	 	 	Title:	 
	 	 	 
	Witness	 	 

 

    	 	- 57 -	 

     

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

    	 	- 1 -	 

     

    

 

EXHIBIT
B

List of Landlord’s Personal Property

 

All machinery, equipment,
furniture, furnishings, moveable walls or partitions, computers or trade fixtures or other tangible personal property that is
owned by Landlord and is used or useful in Tenant’s business on the Premises, excluding items, if any, included within the
definition of Fixtures, but specifically including those items described in Exhibit C- 1 hereto.

 

    	 	- 1 -	 

     

    

 

EXHIBIT
B-1

Itemization of Landlord’s Personal Property

 

[To be mutually agreed
upon by Landlord and Tenant prior to the Commencement Date. When agreed upon, the same shall be initialed by each of Landlord
and Tenant and attached hereto as Exhibit C-1, and will thereafter form a part of this Lease. Failure of either Landlord
or Tenant to prepare and/or initial such Exhibit C-1 shall not affect the definition of or what personal property constitutes
Landlord’s Personal Property in accordance with Exhibit C.]

 

    	 	- 1 -	 

     

    

 

EXHIBIT
C

Supplemental Collateral Description

 

The following terms shall have the following
meanings:

 

“CHAMPUS” means the Civilian
Health and Medical Program of the Uniformed Service, a program of medical benefits covering retirees and dependents of members
or former members of a uniformed service, provided, financed and supervised by the United States Department of Defense and established
by 10 U.S.C. § 1071 et seq.

 

“CHAMPUS Receivable” means
any account that arises from the provision of health care services (and any services or sales ancillary thereto) and that is payable
pursuant to CHAMPUS.

 

“CHAMPUS Regulations” means
collectively (a) all federal statutes (whether set forth in 10 U.S.C. § 1071 et seq. or elsewhere) affecting CHAMPUS and
(b) all applicable provisions of all rules, regulations (including, but not limited to, 32 C.F.R. 199), manuals, orders and administrative,
reimbursement and other guidelines of any governmental or regulatory authority promulgated pursuant to or in connection with any
of such federal statutes, in each case as such statutes, rules, regulations, manuals, orders and guidelines may be supplemented,
amended or otherwise modified from time to time.

 

“Medicaid” means the medical
assistance program established by Title XIX of the Social Security Act, as amended.

 

“Medicaid Receivable” means
any account that arises from the provision of health care services (and any services or sales ancillary thereto) and that is payable
pursuant to an agreement entered into between a health care facility and a federal or state agency or other Person administering
Medicaid, pursuant to which the health care facility agrees to provide services or merchandise for patients under Medicaid in
accordance with the terms of such agreement and the Medicaid Regulations.

 

“Medicaid Regulations”
means collectively (a) all federal statutes (whether set forth in Title XIX of the Social Security Act, as amended, or elsewhere)
affecting Medicaid, (b) all applicable provisions of all rules, regulations, manuals, orders and administrative, reimbursement
and other guidelines of any governmental or regulatory authority promulgated pursuant to or in connection with any of such federal
statutes, (c) all state statutes and plans for medical assistance enacted in connection with any such federal statutes, rules,
regulations, manuals, orders and guidelines, and (d) and all applicable provisions of all rules, regulations, manuals, orders
and administrative, reimbursement and other guidelines of any governmental or regulatory authority promulgated pursuant to or
in connection with any of such state statutes, in each case as such statutes, rules, regulations, manuals, orders and guidelines
may be supplemented, amended or otherwise modified from time to time.

 

“Medicare” means the health
insurance program for the aged and disabled established by Title XVIII of the Social Security Act, as amended.

 

    	 	- 1 -	 

     

    

 

“Medicare Receivable” means
any account that arises from the provision of health care services (and any services or sales ancillary thereto) and that is payable
pursuant to an agreement entered into between a health care facility and a federal or state agency or other Person administering
Medicare, pursuant to which the health care facility agrees to provide services or merchandise for patients under Medicare in
accordance with the terms of such agreement and the Medicare Regulations.

 

“Medicare Regulations”
means collectively (a) all federal statutes (whether set forth in Title XVIII of the Social Security Act, as amended, or elsewhere)
affecting Medicare and (b) all applicable provisions of all rules, regulations, manuals, orders and administrative, reimbursement
and other guidelines of any governmental or regulatory authority promulgated pursuant to or in connection with any of such federal
statutes, in each case as such statutes, rules, regulations, manuals, orders and guidelines may be supplemented, amended or otherwise
modified from time to time.

 

Without limiting the provisions of Section
16.7 of the Lease, the “Collateral” includes, and Tenant hereby grants to Landlord a security interest in and
to, all of Tenant’s right, title and interest in the following described property and property rights (and types of property)
that are located on, attached to or under or used or useful in connection with all or any part of the Land and/or any of the Facilities
located or to be located thereon, both presently existing and hereafter acquired or arising, wherever located, and all replacements
and additions thereto:

 

(1)         All
inventory in all of its forms, including, but not limited to, all central supplies, linen, housekeeping and other supplies (collectively,
the “Inventory”).

 

(2)         All
accounts, accounts receivable (regardless of source payment), notes, drafts, acceptances, instruments, chattel paper, choses in
action, documents, deposit accounts, general intangibles, intangible personal property, things in action, contract rights and
other rights to receive the payment of money and other consideration of any kind, however evidenced or designated, whether now
or hereafter existing and whether or not arising out of or in connection with the sale or lease of goods or the rendering of services,
and all rights now or hereafter existing in and to all security agreements, leases and other contracts securing or otherwise relating
to any of the foregoing (collectively, the “Receivables”); without limiting the foregoing, the term “Receivables”
shall include CHAMPUS Receivables, Medicaid Receivables and Medicare Receivables.

 

(3)         All
beds, linens, towels, televisions, carpeting, draperies and blinds, telephones, computers, lamps, medical and rehabilitation equipment,
wheel chairs, laboratory equipment, diagnostic equipment, furniture, furnishings, food service equipment, restaurant and kitchen
equipment, medical equipment, heating and air conditioning equipment, fixtures, other equipment, machinery and tangible personal
property of every description and kind, and all replacements or substitutions thereto owned by Tenant, and all parts thereof and
all accessions thereto; provided, however, that with respect to any items that are leased and not owned by Tenant, the Equipment
shall include the leasehold interest only of Tenant together with any options to purchase any of said items and any additional
or greater rights with respect to such items that Tenant may hereafter acquire (collectively the “Equipment”).

 

    	 	- 2 -	 

     

    

 

(4)         To
the full extent transferable, all Certificates of Need, licenses, permits, registrations, certificates, consents, accreditations,
approvals and franchises owned by Tenant and necessary to operate the Facilities, subject only to necessary governmental approval.

 

(5)         All
plans and surveys, including, without limitation, all “as built” plans, plans relating to utilities, easements and
roads, plats, specifications, engineers’ drawings, architectural renderings and similar items owned by Tenant.

 

(6)         Investment
Property as defined in the Uniform Commercial Code as adopted in the State of Virginia (the “Code”).

 

(7)         All
ledger sheets, records (including but not limited to [patient and resident records]), files, data, printouts, data bases,
programs and books of account relating to any of the foregoing items, whether in the form of writings, photographs, microfilm,
microfiche or electronic media, together with all computer software necessary to access, use, create, maintain or process the
foregoing on electronic media (collectively the “Documentation”).

 

(8)         All
proceeds of any and all of the foregoing items, including proceeds that constitute property of the types described as Collateral,
and, to the extent not otherwise included, all (a) payments under insurance (whether or not Landlord is the loss payee thereof),
or any indemnity, warranty or guaranty payable by reason of loss to or otherwise with respect to any of the foregoing items and
(b) cash;

 

    	 	- 3 -	 

     

    

 

EXHIBIT D

Letter of Credit form

 

IRREVOCABLE STANDBY LETTER OF CREDIT

 

LETTER OF CREDIT NO.:___________________________

 

DATE: ___________________, 20__

 

ISSUING BANK: _________________________________

 

ADDRESS: _______________________________

                     ______________________________

 

FACSIMILE NO.: __________________________

 

EXPIRATION DATE:                                      ,
20__, AT OUR COUNTERS

 

AMOUNT: ________________________ US DOLLARS ($________________)

 

BENEFICIARY: ________________________

 

ADDRESS: _______________________________

                    _______________________________

 

FACSIMILE NO.: __________________________

 

WE HEREBY ESTABLISH IN YOUR FAVOR OUR IRREVOCABLE
LETTER OF CREDIT NO.                  
IN THE AMOUNT OF                            
US DOLLARS ($                     )
FOR THE ACCOUNT OF [TENANT]. DRAW(S) UP TO THE MAXIMUM AGGREGATE AMOUNT AVAILABLE UNDER THIS LETTER OF CREDIT, ARE PAYABLE BY
US WITHIN TWO BUSINESS DAYS AFTER OUR RECEIPT ON OR PRIOR TO OUR CLOSE OF BUSINESS ON THE EXPIRATION DATE, OF ONE OR MORE DRAW
STATEMENTS PURPORTEDLY SIGNED BY YOUR AUTHORIZED OFFICER OR REPRESENTATIVE OR, IF THIS LETTER OF CREDIT IS TRANSFERRED, BY AN
AUTHORIZED OFFICER OR REPRESENTATIVE OF ANY TRANSFEREE BENEFICIARY. EACH DRAW STATEMENT SHOULD BE ADDRESSED TO US, REFERENCE THIS
LETTER OF CREDIT BY NUMBER, SPECIFY THE AMOUNT OF THE DRAW REQUEST, SET FORTH WIRE TRANSFER INSTRUCTIONS AND CONTAIN, IN SUBSTANCE,
THE FOLLOWING STATEMENT (WITH THE AMOUNT OF THE DRAW REQUEST AND WIRE TRANSFER INSTRUCTIONS COMPLETED): “BENEFICIARY HEREBY
DRAWS ON LETTER OF CREDIT NO.                                
IN THE AMOUNT OF $______________. FUNDS IN RESPECT OF THIS DRAW REQUEST SHOULD BE WIRE TRANSFERRED TO ___________ BANK, ROUTING
NO. __________, ACCOUNT NO. ____________ FOR CREDIT TO THE ACCOUNT OF ____________________________.” NO FURTHER INFORMATION
SHALL BE REQUIRED ON SUCH DEMAND.

 

    	 	- 1 -	 

     

    

 

THIS LETTER OF CREDIT SHALL INITIALLY EXPIRE
ON                                      ,
20___. SUCH EXPIRATION DATE SHALL BE AUTOMATICALLY EXTENDED WITHOUT NOTICE OR AMENDMENT FOR PERIODS OF ONE (1) YEAR, BUT IN NO
EVENT LATER THAN                             ,
20___, UNLESS AT LEAST SIXTY (60) DAYS BEFORE ANY EXPIRATION DATE, WE NOTIFY YOU BY REGISTERED MAIL OR OVERNIGHT COURIER SERVICE
AT YOUR ADDRESS ABOVE (OR ANY OTHER ADDRESS OF WHICH YOU PROVIDE US NOTICE AT OUR ADDRESS SET FORTH ABOVE), THAT THIS LETTER OF
CREDIT IS NOT EXTENDED BEYOND THE CURRENT EXPIRATION DATE. UPON RECEIPT BY YOU OF SUCH NOTIFICATION, YOU MAY DRAW ON THIS LETTER
OF CREDIT AS SET FORTH ABOVE, PROVIDED THAT THE AMOUNT OF YOUR DRAW SHALL NOT EXCEED THE TOTAL AMOUNT AVAILABLE FOR PAYMENT HEREUNDER.

 

DRAW REQUESTS NEED NOT BE PRESENTED AS ORIGINALS
AND MAY BE SUBMITTED IN PERSON, BY COURIER, BY MAIL OR BY FACSIMILE TO OUR ADDRESS OR FACSIMILE NUMBER STATED ABOVE.

 

THIS LETTER OF CREDIT IS TRANSFERABLE ONE
OR MORE TIMES IN WHOLE BUT NOT IN PART UPON OUR RECEIPT OF A TRANSFER REQUEST IN THE FORM ATTACHED AS EXHIBIT A, SIGNED BY THE
THEN CURRENT BENEFICIARY. THE CHARGE FOR EACH TRANSFER IS LIMITED TO $100.

 

THIS LETTER OF CREDIT IS GOVERNED BY THE INTERNATIONAL
STANDBY PRACTICES 1998 (ICC PUBLICATION NO. 590), EXCEPT TO THE EXTENT THE SAME WOULD BE INCONSISTENT WITH THE EXPRESS PROVISIONS
HEREOF. WE HEREBY WAIVE AND DISCLAIM RIGHTS OF SUBROGATION IN RESPECT OF ANY DRAW MADE BY YOU, WHETHER ARISING UNDER THE UNIFORM
COMMERCIAL CODE OR OTHERWISE.

 

	 	 
	 	AUTHORIZED OFFICER

 

    	 	- 2 -	 

     

    

 

EXHIBIT A

 

Transfer Form

 

    	 	- 3 -	 

     

    

 

EXHIBIT
E

intentionally omitted

 

    	 	- 1 -	 

     

    

 

LEASE
GUARANTY

 

THIS GUARANTY OF LEASE
is made this ____ day of _________, 20__, by SURGICAL MANAGEMENT PROFESSIONALS, LLC, a South Dakota limited liability company
(the “Guarantor”), in favor of [AFFILIATE OF GLOBAL MEDICAL REIT, INC.], a Delaware limited liability company
(the “Landlord”).

 

WITNESSETH:

 

WHEREAS, the Guarantor
desires to induce Landlord to enter into a lease with THE SURGICAL INSTITUTE OF MICHIGAN, LLC, a Delaware limited liability company
(the “Tenant”), with respect to certain premises, consisting of                         
feet located at                                          
(the “Lease”), such Lease being of even date herewith; and

 

WHEREAS, the entering
into of the Lease by Landlord and Tenant will be of direct pecuniary advantage to Guarantor;

 

NOW, THEREFORE, in consideration
of One Dollar ($1.00) paid by Landlord to Guarantor and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor hereby covenants and agrees with the Landlord, as follows:

 

1.          The
Guarantor, as primary obligor, hereby (a) unconditionally guarantees the prompt, punctual and full payment of the rent and
all other sums due under the Lease in accordance with the terms and tenor thereof as completely and effectually as if such guarantee
had been made by Guarantor on the face of the Lease; (b) unconditionally guarantees the prompt, punctual and full performance
by Tenant of any and all of the agreements, covenants, terms and conditions agreed to be performed by Tenant under the Lease;
and (c) covenants and agrees that in the event of default in payments or any default in the performance of any of the terms,
covenants or conditions thereof, the Guarantor will promptly make or cause such payment to be made or will perform or cause to
be performed all such terms, covenants and conditions, irrespective of any invalidity therein, the unenforceability thereof or
the insufficiency, invalidity or unenforceability of any security therefor.

 

2.          The
Guarantor does hereby further agree that Guarantor’s liability hereunder as Guarantor shall not be prejudiced, impaired
or affected by any of the following, whether with or without its knowledge or consent: (a) any renewal or extension of the
time of payment of the rent or other sums due under the Lease or of the time for performance by any party obligated under the
Lease; (b) by any forbearance or delay in enforcing the payment of the rent or other sums due under the Lease or enforcing
the obligations of any party to the Lease; (c) by any modification, addition or alteration of the terms, tenor or provisions
of the Lease or (d) by the release of any other collateral Landlord may hold for the obligations of Tenant.

 

3.          On
or before the 15th day of each calendar quarter during the term hereof, Guarantor shall submit to Landlord a current financial
statement in form and content satisfactory to Landlord indicating Guarantor’s current net worth. Guarantor shall submit
substantiating documentation to Landlord upon request. In addition, within thirty (30) days following the expiration of Guarantor’s
fiscal year, and no less frequently than once every twelve (12) calendar months, Guarantor shall submit to Landlord an annual
audited financial statement prepared in accordance with generally accepted accounting principles consistently applied and certified
as true and correct by Guarantor’s chief financial officer. Guarantor acknowledges that Landlord may require Tenant to post
additional collateral for its obligations under the Lease in the event of a decline in the financial condition of Guarantor and
that it shall be a default under the Lease entitling Landlord to call upon this Guaranty if Tenant shall fail to post such additional
collateral or if Guarantor files a petition in bankruptcy, is adjudged a bankrupt, has a receiver appointed for its assets, makes
an assignment for the benefit of creditors, or otherwise takes advantage of any debtor relief proceedings available under federal,
state or local law.

 

    	 	- 2 -	 

     

    

 

4.          This
Guaranty is and shall be construed to be an irrevocable, absolute, unlimited and continuing guaranty of payment and performance,
and the liability of Guarantor hereunder and Landlord’s right to pursue Guarantor shall not be affected, delayed, limited,
impaired or discharged, in whole or in part, by reason of an extension or discharge that may be granted to the Tenant by any court
in proceedings under the Bankruptcy Code, or any amendments thereof, or under any other state or other federal statutes. The Guarantor
expressly waives the benefits of any extension or discharge granted to Tenant. This Guaranty shall survive notwithstanding the
expiration or termination of the Lease with respect to any sums previously received from Tenant or from Guarantor that Landlord
may be required to repay in such proceeding.

 

5.          The
Landlord shall have the right to proceed against Guarantor immediately upon any default by the Tenant in payment or performance
of any obligation under the Lease, and Landlord shall not be required to take any action or proceedings of any kind against the
Tenant or any other party liable for the Tenant’s debts or obligations or to look to any other collateral Landlord may have
for the obligations of Tenant under the Lease. Should Landlord desire to proceed against Guarantor and Tenant in the same action,
Guarantor agrees that Guarantor may be joined in any such action against Tenant and that recovery may be had against Guarantor
to the extent of Guarantor’s liability in such action.

 

6.          If
Landlord calls upon Guarantor to honor, pay or perform all or part of any obligation of the Tenant, and Guarantor fails to honor
such demand, the debt or obligation owed the Landlord pursuant to this Guaranty shall bear interest at the Interest Rate set forth
in the Lease. In case Guarantor fails or refuses to honor this Guaranty, the Landlord is hereby authorized to utilize such legal
means as Landlord deems proper to enforce this Guaranty, through the efforts of its employees, agents, or attorneys, and Guarantor
shall pay all costs of enforcement and collection, including but not limited to court costs, reasonable attorneys’ fees,
depositions and expert witnesses.

 

7.          If
a corporation, partnership, limited liability company or other entity is executing this Guaranty, the Guarantor and the individual
executing this Guaranty on behalf of the Guarantor personally warrant that execution and delivery hereof and the assumption of
liability hereunder have been in all respects authorized and approved by proper action on the part of the Guarantor, that the
Guarantor has full authority and power to execute this Guaranty, that the Guarantor is duly formed and in good standing in the
state of its formation and that the Guarantor is authorized to do business in the state in which the premises subject to the Lease
are located.

 

    	 	- 3 -	 

     

    

 

8.          The
Guaranty shall be binding upon and inure to the benefit of the heirs, personal and legal representatives, successors and assigns
of Guarantor and the Landlord. The Landlord shall have the right to assign and transfer this Guaranty to any assignee of the Lease,
and this Guaranty shall be deemed to run with the Lease. The Landlord’s successors and assigns shall have the rights, elections,
remedies, and privileges, discretions and powers granted hereunder to the Landlord and shall have the right to rely upon this
Guaranty and to enter into and continue other and additional transactions with the Tenant in reliance hereon, in the same manner
and with the same force and effect as if they were specifically named as the Landlord herein.

 

9.          This
Guaranty shall constitute a Michigan contract, and be governed by the laws of the State of Michigan. The undersigned hereby voluntarily
submits to the jurisdiction of any court in the State of Michigan  having jurisdiction over the subject matter of this
instrument, and hereby constitutes the Secretary of State of the State of Michigan as its agent for service of process in connection
with any suit or proceeding arising hereunder.

 

10.         Failure
of the Landlord to insist in any one or more instances upon strict performance of any one or more of the provisions of this Guaranty
or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment
of any such rights, but the same shall continue and remain in full force and effect.

 

11.         The
Landlord shall have the right, without affecting Guarantor’s obligations hereunder, and without demand or notice, to collect
first from the Tenant, and to exercise its rights of setoff against any asset of the Tenant, and to otherwise pursue and collect
from the Tenant any other indebtedness of the Tenant to the Landlord not covered by this Guaranty, and any sums received from
the Tenant, whether by voluntary payment, offset, or collection efforts, may be applied by the Landlord as it sees fit, including
the application of all such amounts to other debts not guaranteed by Guarantor. Subrogation rights or any other rights of any
kind of Guarantor against the Tenant, if any, shall not become available until all indebtednesses and obligations of the Tenant
to the Landlord are paid in full. This Guaranty shall survive the expiration or termination of the Lease to the extent the obligations
of the Tenant thereunder likewise survive.

 

12.         Landlord
may proceed against any collateral securing the obligations of Tenant and against parties liable therefor in such order as it
may elect, and Guarantor shall not be entitled to require Landlord to marshall assets. The benefit of any rule of law or equity
to the contrary is hereby expressly waived.

 

13.         Landlord
may, in its sole discretion and with or without consideration, release any collateral securing the obligations of Tenant or release
any party liable therefor. The defenses of impairment of collateral and impairment of recourse and any requirement of diligence
on Landlord’s part in perfecting or enforcing any lien granted in the Lease or in collecting the obligations under the Lease
are hereby waived.

 

    	 	- 4 -	 

     

    

 

14.         Within
ten (10) days after request therefor by Landlord, or in the event of any sale, assignment or hypothecation of the property of
which the premises leased by Tenant are a part, Guarantor agrees to deliver in recordable form, an estoppel certificate to any
proposed ground lessor, mortgagee or purchaser, or to Landlord, signed by Guarantor certifying that this Guaranty is unmodified
and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified, and
stating the modifications), that there are no defenses or offsets thereto (or stating those claimed by Guarantor), and such other
matters as may be requested. If Guarantor fails to deliver such certificate as required herein, Guarantor shall be deemed to have
conclusively agreed to and be bound by all matters set forth in the certificate as submitted by the requesting party.

 

15.         Guarantor
hereby waives any requirement of presentment, protest, notice of dishonor, notice of default, demand, and all other actions or
notices that may be required on Landlord’s part in connection with the obligations guaranteed hereby.

 

16.         GUARANTOR
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY ACTION, PROCEEDING OR COUNTERCLAIM WITH RESPECT TO THIS GUARANTY.

 

17.         In
the event any portion of this Guaranty shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable,
such portion shall be deemed severed from this Guaranty, and the remaining parts hereof shall remain in full force and effect,
as fully as though such invalid, illegal or unenforceable portion had never been part of this Guaranty.

 

18.         If
there is more than one Guarantor, the obligations of each Guarantor under this Guaranty are and will be joint and several. Landlord
may release any one or more Guarantors at any time without notice to or consent by the remaining Guarantors and without affecting
the continuing liability of the remaining Guarantors. Landlord shall not be required to pursue any remedy against any other person
or party which shall have executed any agreement of guaranty with Landlord. Landlord may elect, in its sole and absolute discretion,
to seek to recover from any one or more of such persons or parties and no such election shall constitute any defense or any other
bar or limitation to the enforcement of Guarantors’ obligations set forth herein.

 

    	 	- 5 -	 

     

    

 

IN WITNESS WHEREOF, Guarantor
has executed this Guaranty as of the day and year first set forth above.

 

	WITNESS:	 	GUARANTOR:
	 	 	 
	 	 	SURGICAL MANAGEMENT PROFESSIONALS, LLC, a South Dakota limited liability company
	 	 	 	 
	 	 	By:	                        
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 

 

    	 	- 6 -

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