Document:

Exhibit 10.55

 

Exhibit
10.55

LEASE AGREEMENT

FOR

OFFICE FACILITIES

MAITLAND CONCOURSE

	 	 	 	 	 
	TENANT:

	 	TANDEM HEALTH CARE, INC.

	 
	SUITE:

	 	200	 

 

 

INDEX

	 	 	 	 	 	 	 
	NO.	 	PARAGRAPH HEADING		PAGE
	1.
	 	Definitions.
		 	1	 
	 	 			 	 	 
	2.
	 	Lease Grant
		 	3	 
	 	 			 	 	 
	3.
	 	Lease Term.
		 	3	 
	 	 			 	 	 
	4.
	 	Use.
		 	5	 
	 	 			 	 	 
	5.
	 	Base Rent
		 	7	 
	 	 			 	 	 
	6.
	 	Base Rent Adjustment.
		 	8	 
	 	 			 	 	 
	7.
	 	Services to be Furnished by Landlord.
		 	13	 
	 	 			 	 	 
	8.
	 	Improvements to be Made by Landlord
		 	15	 
	 	 			 	 	 
	9.
	 	Graphics
		 	15	 
	 	 			 	 	 
	10.
	 	Care of the Premises and Building
		 	15	 
	 	 			 	 	 
	11.
	 	Alterations by Tenant.
		 	16	 
	 	 			 	 	 
	12.
	 	Use of
Electrical Services by Tenant.
		 	17	 
	 	 			 	 	 
	13.
	 	Parking
		 	18	 
	 	 			 	 	 
	14.
	 	Laws,
Regulations and Rules.
		 	18	 
	 	 			 	 	 
	15.
	 	Entry by Landlord
		 	18	 
	 	 			 	 	 
	16.
	 	Assignment and Subletting
		 	18	 
	 	 			 	 	 
	17.
	 	Covenants Against Liens
		 	21	 
	 	 			 	 	 
	18.
	 	Property
Insurance.
		 	22	 
	 	 			 	 	 
	19.
	 	Liability
Insurance.
		 	23	 
	 	 			 	 	 
	20.
	 	Assumption of Risk.
		 	23	 
	 	 			 	 	 
	21.
	 	Casualty
Damage.
		 	24	 
	 	 			 	 	 
	22.
	 	Condemnation.
		 	26	 
	 	 			 	 	 
	23.
	 	Damages from Certain Causes
		 	27	 
	 	 			 	 	 
	24.
	 	Events of
Default/Remedies.
		 	27	 
	 	 			 	 	 
	25.
	 	Peaceful
Enjoyment.
		 	31	 
	 	 			 	 	 
	26.
	 	Intentionally Omitted
		 	31	 
	 	 			 	 	 
	27.
	 	Holding Over
		 	32	 
	 	 			 	 	 
	28.
	 	Subordination to Mortgage
		 	32	 
	 	 			 	 	 
	29.
	 	Tenant’s Personal Property.
		 	33	 

i

 

	 	 	 	 	 
	NO.	 	PARAGRAPH HEADING	PAGE

	30.
   Attorneys’ Fees
	 	 	33	 
	 	 	 	 	 
	31.    No Implied Waiver
	 	 	34	 
	 	 	 	 	 
	32.
   Personal Liability
	 	 	34	 
	 	 	 	 	 
	33.    Security Deposit
	 	 	34	 
	 	 	 	 	 
	34.
   Force Majeure
	 	 	34	 
	 	 	 	 	 
	35.    Relationship of Parties
	 	 	34	 
	 	 	 	 	 
	36.    Miscellaneous
	 	 	35	 
	 	 	 	 	 
	37.    Renewal Option
	 	 	37	 
	 	 	 	 	 
	38.
   Right of First Refusal — Lease
	 	 	38	 
	 	 	 	 	 
	39.   
Right of First Offer—Purchase
	 	 	40	 
	 	 	 	 	 
	40.    Satellite Antenna
	 	 	41	 
	 	 	 	 	 
	41.
   Moving Allowance
	 	 	41	 
	 	 	 	 	 
	EXHIBIT “A” DESCRIPTION OF REAL PROPERTY
	 	 	A-l	 
	 	 	 	 	 
	EXHIBIT “B” PREMISES LOCATION IN BUILDING
	 	 	B-l	 
	 	 	 	 	 
	EXHIBIT “C” WORK LETTER
	 	 	C-l	 
	 	 	 	 	 
	EXHIBIT “D” BUILDING RULES AND REGULATIONS
	 	 	D-l	 
	 	 	 	 	 
	EXHIBIT “E” FORM OF SUBORDINATION, NON-DISTURBANCE AND
ATTORNMENT AGREEMENT
	 	 	E-l	 
	 	 	 	 	 
	EXHIBIT “F” SITE PLAN
	 	 	F-1	 

ii

 

LEASE
AGREEMENT

     This LEASE AGREEMENT (this “Lease”), is made and entered into as of May 14, 2003, between
MAITLAND CONCOURSE PHASE II, LLLP., a Florida limited liability partnership (“Landlord”), and
TANDEM HEALTH CARE, INC., a Pennsylvania corporation (“Tenant”).

     1. Definitions.

     1.1 “Building” means the two (2) story office building known as Maitland Concourse Phase II,
Building III, on the Real Property (“Real Property”) described in Exhibit “A” attached hereto, and
other improvements presently or hereafter located on the Real Property, all as shown on the Site
Plan attached as Exhibit “F” hereto and made a part hereof (the “Site Plan”).

     1.2
“Premises” means the suite of offices (Suite No. 200) located on the second
(2nd) floor of the Building, in the location depicted on Exhibit “B” attached hereto
(the “Second Floor Space”) and that certain space on the first (1st) floor of the
Building containing approximately 900 square feet of Net Rentable Area in a location to be agreed
upon by Landlord and Tenant (the “First Floor Space”). The Premises are stipulated for all purposes
to contain approximately 23,400 square feet of Net Rentable Area. The Premises shall not include,
and Tenant shall have no claim under this Lease for, any easement of light and air over any portion
of the Building or any adjacent or other premises of Landlord.

     1.3 “Base Rent” means the sum of $ 19.25 per square foot of Net Rentable Area of the Premises
(as defined below) per annum as adjusted pursuant to Paragraph 6. The Base Rent due for the fifth
(5th) month of the Lease Term (hereinafter defined), in the amount of $37,537.50, plus
applicable state sales tax, shall be deposited with Landlord by Tenant contemporaneously with
Tenant’s execution and delivery of this Lease. Notwithstanding anything to the contrary contained
in this Lease, Base Rent and Tenant’s obligation to pay Tenant’s Proportionate Share of increases
in Operating Expenses which would otherwise be due under the terms of this Lease shall be abated
for the first four (4) months of the Lease Term.

     1.4 “Additional Rent” means any and all sums of money not defined as Base Rent with the
exception of Tenant Improvements as defined in Paragraph 1, Subparagraph 1.15.

     1.5 “Commencement Date” means, subject to Subparagraph 3.2 of this Lease, the date on which
the following have occurred: (i) Landlord has delivered possession of the Second Floor Space to
Tenant with the Tenant Improvements (as defined in the Work Letter) in the Second Floor Space
Substantially Completed (as hereinafter defined) and, (ii) to the extent applicable, a certificate
of occupancy has been issued for the Tenant Improvements in the Second Floor Space, or the
governmental authority has furnished equivalent evidence that Tenant may legally use and occupy the
Second Floor Space for its office operation. As used in this Lease, the term “Ready for Occupancy”
means that the matters described in clauses (i) and (ii) above have both occurred. Notwithstanding
the provisions of this Section 1.5, Landlord shall endeavor to Substantially Complete the Tenant
Improvements in the First Floor Space as soon as

 

 

reasonably feasible, depending, in large part, upon Tenant’s completion of the space plan for the
First Floor Space and review and approval of the final plans, specifications and working drawings
for the First Floor Space.

     1.6 “Lease Term” means a term of sixty-four (64) months from and after the Commencement Date,
unless sooner terminated or extended to a later date as herein provided.

     1.7 “Expiration Date” means the last day of the Lease Term.

     1.8
“Security Deposit” means the sum of $0.00.

     1.9
“Common Areas” means those areas devoted to corridors, lobbies, elevator foyers, rest
rooms, mechanical rooms, janitorial closets, electrical and telephone closets, vending areas and
other similar facilities provided for the common use or benefit of tenants generally and/or the
public. Tenant agrees that Landlord shall have the right, at any time and from time to time for the
purposes of accommodating other tenants of the Building or otherwise, to increase or decrease the
dimensions, change the configurations, or to otherwise alter the Common Areas so long as Tenant’s
access to the Premises and other essential facilities are not prohibited thereby, the configuration
of the Premises is not modified, the available parking areas (as of the date of this Lease) are not
reduced or relocated to locations outside of those shown on the Site Plan, and Tenant’s enjoyment
of the Premises is not materially and adversely affected.

     1.10
“Service Areas” means those areas within the outside walls of the building used for
elevator mechanical rooms, building stairs, fire towers, elevator shafts, flues, vents, stacks,
pipe shafts and vertical ducts (but shall not include any such areas for the exclusive use of a
particular tenant).

     1.11
“Net Rentable Area of the Building” shall mean 44,500 square feet, which may be
adjusted from time to time by Landlord.

     1.12
“Operating Expenses” shall have the meaning ascribed to it in Paragraph 6.2(a) of
this Lease.

     1.13
“Exterior Common Areas” means the portion of the Real Property which is not
located within the Building, and which are provided and maintained for the common use and benefit
of Landlord and tenants of the Building generally and the employees, invitees and licensees of
Landlord and such tenants including, without limitation, buildings, vehicular access areas,
streets, sidewalks and landscaped areas.

     1.14
“Base Building Improvements” means those improvements to the Premises described in Work
Letter attached as Exhibit C to this Lease and incorporated herein.

     1.15
“Tenant Improvements” means, except for the Base Building Improvements, all
improvements in the Premises to prepare the Premises for occupancy by the Tenant, as described
in the Work Letter.

2

 

     1.16
“Building Grade” means the type, brand and/or quality of materials Landlord
reasonably designates from time to time to be the minimum quality to be used in the Building or the
exclusive type, grade or quality of material to be used in the Building.

     1.17
“Net Usable Area” of the Premises shall mean the Net Rentable Area of the
Premises less; (a) any area not located on a floor within the Premises; (b) any Common Areas and
Service Areas located in the Premises or the Premises’ allotted share of any such Common Areas and
Service Areas, and (c) all restrooms, fire escapes, stairways, Building elevator shafts and
Building electrical, mechanical and telephone rooms located in the Premises.

     1.18
“Normal Building Hours” means 8:00 a.m. to 7:00 p.m., Monday through Friday, and
8:00 a.m. to 1:00 p.m. on Saturday, exclusive of legal holidays.

     1.19
“Substantially Complete” shall mean that Landlord has completed the Tenant
Improvements to the point where any remaining work to be done is of such a nature as will not
materially and adversely interfere with Tenant’s occupancy of the Premises, notwithstanding the
existence of minor or insubstantial details of construction, mechanical adjustment, or decoration
which remain to be performed or punchlist type items which may not have been completed.

     1.20
“Net Rentable Area of the Premises” shall mean the agreed to and stipulated
amount of 23,400 square feet. Within thirty (30) days following the Commencement Date, Tenant and
its representatives may measure the floor area of the Premises. In the event Tenant determines that
the Net Rentable Area of the Premises (measured in accordance with BOMA Standard ANSI Z65.1-1996
and using the Building common area add-on factor) is less than 23,400 square feet, then Tenant
shall notify Landlord within said thirty day period. In the event Landlord and Tenant do not agree
upon the actual Net Rentable Area of the Premises within thirty (30) days following Tenant’s
notification to Landlord concerning the Net Rentable Area of the Premises, said determination shall
be submitted to an arbitrator to be selected in accordance with the rules of the American
Arbitration Association, and the amount of the Base Rent and Additional Rent payable under this
Lease and based upon the Net Rentable Area of the Premises shall be adjusted accordingly based upon
the actual Net Rentable Area of the Premises determined by the arbitrator or as agreed upon by the
parties, whichever is applicable.

     2. Lease
Grant. Subject to and upon the terms herein set forth, Landlord leases to
Tenant and Tenant leases from Landlord the Premises.

     3. Lease Term.

     3.1 This Lease shall continue in force during a period beginning on the Commencement Date, and
terminating on the Expiration Date, unless this Lease is sooner terminated or extended to a later
date under any other term or provision of this Lease. Tenant shall be permitted entry to the
Premises four (4) weeks prior to the anticipated Commencement Date for the purpose of installing
its fixtures and equipment and performing such other work as is necessary to prepare the Premises
for occupancy. This early entry will be at Tenant’s sole risk and subject to all the terms and
provisions of this Lease as though the Commencement Date had occurred, except for the payment of
rent, which will commence on the Commencement Date.

3

 

Tenant, and its contractors, agents and employees will not materially interfere with or delay the
construction of the Tenant Improvements. All rights of Tenant under this Section 3.1 will be
subject to the requirements of all applicable building codes, zoning requirements, and federal,
state and local laws, rules, and regulations, and shall not interfere with Landlord’s compliance
with laws, including the obtaining of a certificate of occupancy or completion, as applicable for
the Premises.

     3.2 Provided that the Final Plans (as defined in the Work Letter) (with all final finishes)
for the Tenant Improvements are approved by Landlord and Tenant, and in form complete for the
purpose of bidding and obtaining a building permit, on or before May 15, 2003, Landlord reasonably
believes that the Tenant Improvements (excluding the Tenant Improvements in the First Floor Space)
will be substantially completed on or before August 21, 2003. If the Tenant Improvements have not
been Substantially Completed by August 21, 2003, Landlord shall have no liability of any kind
whatsoever therefor, and the Commencement Date shall be deferred and determined in accordance with
Section 1.5 of this Lease. Notwithstanding the foregoing, if Substantial Completion of the Tenant
Improvements is delayed by a Tenant Delay (as defined in Subparagraph 3.3), the Commencement Date
shall be the date on which Substantial Completion would have occurred but for the Tenant Delay.

     3.3 Notwithstanding anything to the contrary contained in Section 3.2, and provided that, on
or before May 15, 2003, (i) the Final Plans (as defined in the Work Letter) (with all final
finishes) for the Tenant Improvements are approved by Landlord and Tenant, and in form complete for
the purpose of bidding and obtaining a building permit, and (ii) Tenant has waived, in writing, its
termination right set forth in Section 3.5 below, then, if the Tenant Improvements (excluding the
Tenant Improvements in the First Floor Space) have not been Substantially Completed by September
21, 2003, as such date shall be extended by the period of any delay caused by Tenant Delay (as
hereinafter defined) or a force majeure event (as described in Section 34 below) (such date, as it
may be so extended, the “Outside Date”), then Tenant, as its sole and exclusive remedy, shall
receive, in addition to the scheduled rent abatement described in Sections 1.3 and 5.4, Tenant
shall receive two days of abatement of Base Rent and Tenant’s obligation to pay Tenant’s
Proportionate Share in increases in Operating Expenses for each day past the Outside Date that the
Premises are not Ready for Occupancy. As used herein, a “Tenant Delay” shall mean any delay in the
substantial completion of the Tenant Improvements caused by any act or omission of Tenant or any of
its agents, employees or contractors, including, without limitation, Tenant’s failure to timely
provide information reasonably requested by Landlord in order to prepare the space plan or
construction drawings, Tenant’s failure to timely review and comment upon the proposed space plan
or construction drawings, Tenant’s request for changes to the final, approved construction
drawings, Tenant’s request for “long lead items” (meaning, items which, due to their unique nature,
require long manufacturing or delivery times and are not readily available in a time frame
consistent with the construction schedule for the Tenant Improvements; Landlord will advise Tenant
of the existence of long lead items at the time of Landlord’s review of the plans or drawings in
question), interference by Tenant or its agents, contractors or employees with Landlord’s
performance of the Tenant Improvements, and Tenant’s failure on or before May 15, 2003, to waive
its termination right set forth in Section 3.5 below.

4

 

     3.4 Tenant agrees to accept possession of the Premises when the Tenant Improvements have been
Substantially Completed, and the certificate of occupancy, or equivalent evidence allowing Tenant
to legally occupy and use the Premises, has been issued, with all Building facilities relating
thereto, and all bathrooms, hallways and elevators serving the Premises, in operating order.

     3.5 NOTWITHSTANDING THE FOREGOING, OR ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE PARTIES
EXPRESSLY ACKNOWLEDGE AND AGREE THAT THIS LEASE IS SUBJECT TO THE TENANT’S OBTAINMENT OF CERTAIN
TAX INCENTIVES RELATING TO THE RELOCATION OF ITS CORPORATE HEADQUARTERS FROM THE COMMONWEALTH OF
PENNSYLVANIA TO THE STATE OF FLORIDA. THEREFORE, TENANT SHALL HAVE THE RIGHT TO CANCEL AND VOID
THIS LEASE WITHOUT ANY OBLIGATION TO LANDLORD HEREUNDER (EXCEPT THAT TENANT SHALL BE LIABLE TO
LANDLORD FOR ITS DESIGN FEES AND ATTORNEY FEES INCURRED IN CONNECTION WITH THIS LEASE, WHICH
LIABILITY SHALL SURVIVE SUCH TERMINATION) WITHIN 60 DAYS FOLLOWING FULL EXECUTION OF THIS LEASE IN
THE EVENT THE TENANT HAS BEEN UNABLE TO OBTAIN CERTAIN TAX INCENTIVES REQUIRED BY TENANT RELATING
TO THE PROPOSED RELOCATION. TENANT SHALL NOTIFY LANDLORD OF ITS INABILITY TO OBTAIN SUCH TAX
INCENTIVES AND THE CANCELLATION OF THIS LEASE IN WRITING PRIOR TO THE EXPIRATION OF SAID 60 DAY
PERIOD.

     4. Use.

     4.1 Tenant will use and occupy the Premises for the following use or purpose and for no other
use or purpose: General Office Purposes consistent with a first-class office building.
Notwithstanding anything to the contrary in this Lease, Tenant shall not use or permit any portion
of the Premises to be used, for state or federally regulated commercial banking or savings and loan
association accepting deposits, making loans or disbursing cash, or for the operation of a retail
banking of lending facility, or for the installation of any automatic teller machine.

     4.2 Tenant agrees not to use or permit the use of the Premises, for any purpose which is
illegal, or which, in Landlord’s reasonable opinion, creates a nuisance or which would increase the
cost of insurance coverage with respect to the Building. Tenant shall procure all operational
licenses and permits required for Tenant’s business in the Premises. Landlord represents and
warrants that any existing covenants, conditions or restriction of record, including, but not
limited to, easements, mortgages and development orders, which are applicable to the Building and
the Real Property, will not adversely affect Tenant’s ability to conduct its business at the
Premises as permitted under this Lease.

     4.3 Without Landlord’s express specific written consent in its sole and absolute discretion,
Tenant shall not use, generate, manufacture, produce, store, release, discharge, or dispose of, on,
under or about the Premises or Building or transport to or from the Premises or

5

 

the Building any Hazardous Material (as defined below) or allow its employees, agents, contractors,
licensees, invitees or any other person or entity to do so.

     (a)
“Hazardous Materials” shall include, without limitation, (i) those
substances included within the definitions of “hazardous substances,” “hazardous materials,”
“toxic substances” or “solid waste” under all present and future federal, state and local
laws (whether under common law, statute, rule, regulation or otherwise) relating to the
protection of human health or the environment, including without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the
Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801,
et seq., all as heretofore
and hereafter amended, or in any regulations promulgated pursuant to said laws; (ii) such
other substances, materials and wastes which are or become regulated under applicable local,
state or federal or by the United States government or which are or become classified as
hazardous or toxic under federal, state and local laws or regulations; and (iii) any
material, waste or substance which contains petroleum, asbestos or polychlorinated
biphenyls, is designated as a “hazardous substance” pursuant to Section 311 of the Clean
Water Act of 1977, 33 U.S.C. Sections 1251, et seq. (33 U.S.C. § 1321) or listed pursuant to
Section 307 of the Clean Water Act of 1977 (33 U.S.C. § 1317) or contains any flammable,
explosive or radioactive material.

     (b) The foregoing covenant shall not extend to insignificant amounts of substances
typically found or used in general office applications so long as (i) such substances are
maintained only in such quantities as are reasonably necessary for Tenant’s operations in
the Premises, (ii) such substances are used strictly in accordance with the manufacturers’
instructions therefor and all applicable law, (iii) such substances are not disposed of in
or about the Premises or the Building in a manner which would constitute a releases or
discharge thereof, and (iv) all such substances are removed from the Premises or the
Building by Tenant upon the expiration or earlier termination of this Lease. Tenant shall,
within thirty (30) days after demand therefor, provide to Landlord a written list
identifying any Hazardous Materials then maintained by Tenant in the Premises, the use of
each such Hazardous Material so maintained by Tenant together with written certification by
Tenant stating, in substance, that neither Tenant nor any person for whom Tenant is
responsible has released or discharged any Hazardous Materials in or about the Premises or
on the Building.

     (c) Upon any violation of the foregoing covenants and in all events upon expiration of
the Term, Tenant shall be obligated, at Tenant’s sole costs, to clean-up and remove from the
Building and Premises all Hazardous Materials introduced into the Premises or on the
Building by the Tenant or any third party for whom Tenant is responsible. Such clean-up and
removal shall include any testing and investigation required by any governmental authorities
having jurisdiction and preparation and implementation of any remedial action plan required
by any governmental authorities having jurisdiction. All such clean-up and removal
activities of Tenant shall, in each instance, be conducted to the satisfaction of Landlord
and all governmental authorities having jurisdiction. Landlord shall have a right to enter
and inspect the Premises for violations of Tenant’s covenant herein.

6

 

     (d) To the extent permitted by then applicable law, Tenant shall protect, indemnify,
defend and hold harmless Landlord, the partners of any entity constituting Landlord and the
officers, employees, agents, lenders and attorneys of Landlord and Landlord’s partners from
and against any all claims, liabilities, losses, actions, costs, and expenses (including
attorneys’ fees and costs of defense, whether incurred out of court, at trial, on appeal or
in any bankruptcy or administrative proceeding) incurred by such indemnified persons, or any
of them, as the result of (i) the introduction in the Premises or onto the Building by
Tenant, its employees, agents, licensees, invitees, contractors or any other person or
entity for whom Tenant is responsible (collectively, “Tenant’s Agents”) or any
Hazardous Material, (ii) the usage by Tenant or Tenant’s Agents of Hazardous Materials in or
about the Premises or the Building, (iii) the discharge or release in or about the Premises
or the Building by Tenant or Tenant’s Agents of any Hazardous Material, (iv) any injury to
or death of persons or damage to or destruction of Building resulting from the use by Tenant
or Tenant’s Agents of Hazardous Materials in or about the Premises or the Building, and (v)
any failure of Tenant or Tenant’s Agents to observe the foregoing covenants. Payment shall
not be a condition precedent to enforcement of the foregoing indemnification provision.

     (e) Upon any violation of any of the foregoing covenants, Landlord shall be entitled to
exercise all remedies available to Landlord against the defaulting Tenant, including but not
limited to those set forth in Section 24 of this Lease.

     4.4 Landlord represents and warrants that, to Landlord’s actual knowledge, without any further
investigation or duty of inquiry, as of the date of this Lease, the Building and Real Property are
free from Hazardous Materials or other substances which violate, or are required to be removed or
remediated pursuant to, any Federal, state or local statute, rule, regulation or other law
governing or protecting the environment. If at any time any removal or remediation of any Hazardous
Materials is sought or ordered, or any liability or penalty is sought or imposed, by any person
with respect to the Premises, the Common Areas or any other portion of the Building or the Real
Property, or by any authority having jurisdiction thereof, on account of the presence of any
Hazardous Substance or any migration thereof from the Building or the Real Property, whether based
on an alleged violation of applicable environmental standards, actual damage to persons or property
resulting therefrom, or otherwise, and provided that the Hazardous Materials in question existed
in, on or under the Building or the Real Property as of the Commencement Date or were introduced
in, on or under the Building or Real Property by Landlord or its agents, employees or contractors,
Landlord shall defend, indemnify and hold harmless Tenant therefrom and against all claims,
demands, losses, costs, expenses and liabilities on account of such contamination. This
indemnification shall survive and continue after the expiration or termination of this Lease.

     5. Base Rent.

     5.1 Commencing on the Commencement Date, Tenant agrees to pay during the Lease Term, to
Landlord, without any set off or deduction whatsoever (except as otherwise expressly provided in
this Lease), and as an independent covenant, the Base Rent and all such other sums of money as
shall become due hereunder as additional rent, all of which are sometimes herein

7

 

collectively called “rent”, for the nonpayment of which Landlord shall be entitled to exercise all
such rights and remedies as are herein provided in the case of the nonpayment of Base Rent.
Notwithstanding anything to the contrary contained in this Lease, Tenant’s obligation to pay rent
as to the First Floor Space shall not commence until (i) Landlord has delivered possession of the
First Floor Space to Tenant with the Tenant Improvements in the First Floor Space Substantially
Completed, and (ii) to the extent applicable, a certificate of occupancy has been issued for the
Tenant Improvements in the First Floor Space, or the governmental authority has furnished
equivalent evidence that Tenant may legally use and occupy the First Floor Space for its office
operation. The annual Base Rent for each calendar year or portion thereof during the Lease Term,
together with any estimated adjustment thereto pursuant to Paragraph 6 hereof then in effect,
shall be due and payable in advance, without demand or setoff, in twelve (12) equal installments
on the first day of each calendar month during the initial term of this Lease and any extensions
or renewals thereof, and Tenant hereby agrees to pay such Base Rent and any adjustments thereto to
Landlord at Landlord’s address provided in Paragraph 36, Subparagraph 36.12(a) (or such other
address as may be designated by Landlord in writing from time to time). If the term of this Lease
commences on a day other than the first day of a month or terminates on a day other than the last
day of a month, then the installments of Base Rent and any adjustments thereto for such month or
months shall be prorated, based on the number of days in such month.

     5.2 All installments of rent not paid when due and payable shall bear interest from the date
due until paid at the lesser of the rate of twelve percent (12%) per annum or the maximum lawful
rate.

     5.3 Tenant shall also pay with all rentals and other payments due under this Lease an amount
equal to all sales, use, excise and other taxes now or hereafter imposed by any lawful authority
on all amounts due or required under this Lease and classified as rent by any such authority.

     5.4 Notwithstanding anything to the contrary contained in this Lease, Base Rent and Tenant’s
obligation to pay Tenant’s Proportionate Share of increases in Operating Expenses shall be abated
for the first four (4) months of the Lease Term and Tenant shall have no obligation to pay such
items with respect to such period.

     6. Base Rent Adjustment.

     6.1 Adjustment to Base Rent. Commencing on the second (2) anniversary of the
Commencement Date of this Lease, and on each subsequent anniversary of the Commencement Date
thereafter throughout the Lease Term, the annual Base Rent payable for the following lease year
shall be increased by three percent (3%) of the annual Base Rent for the immediately preceding
lease year.

     6.2 Additional Rental — Operating Expenses and Real Estate Taxes.

     (a) Definitions. The following definitions shall apply for purposes of this
Section:

8

 

     All sums other than Base Rent due from Tenant to Landlord under this Lease shall constitute
“Additional Rental.” The term “Operating Expenses” as used herein shall include all direct costs
of administration, operation and maintenance of the Building, the Common Areas (including Exterior
Common Areas) and other Building appurtenances, as determined in accordance with generally
accepted accounting principles, and shall include Landlord’s actual and reasonable costs and
expenses (all grossed up to reflect 95% occupancy in the event less than 95% of the Building is
occupied by tenants) incurred in connection with the following by way of illustration but not
limitation: the cost of labor, materials and services for the operation and maintenance of the
Building, the Common Areas and its appurtenances, including but not limited to license, permit and
inspection fees; water and sewer charges; garbage and waste disposal; gas, electricity and other
utilities (excluding utilities the cost of which is paid separately by tenants); heat, air
conditioning and ventilation repairs; elevator service; plumbing service and other normal repairs;
janitorial and cleaning service; landscaping; parking garage cleaning, repairs and maintenance;
association fees; pest control; maintenance contracts; security services or personnel (if provided
to the Building); insurance for fire, extended coverage, general liability, and other insurance
which Landlord is required to maintain on the Building and its appurtenances either by the terms
of this Lease or by the holder of any mortgage or deed to secure debt encumbering the Building, or
which Landlord reasonably deems to be necessary in connection with the ownership and operation of
the Building; personnel engaged in onsite management, administration, operation and maintenance of
the Building, its common areas and its appurtenances together with payroll taxes and employee
benefits applicable thereto; management fees (not to exceed 10% of the gross receipts of
collections in the Building); supplies, materials, tools, equipment and general costs associated
with onsite management offices, all accrued and based on a calendar year type operation; but
excluding costs of tenant improvements, depreciation on the Building and equipment there, costs of
capital nature not expressly permitted to be included hereunder, interest, executive salaries, and
all costs billed directly to tenants of the Building either by Landlord or a third party.
Additionally, Operating Expenses shall not include the following:

     (i) expenses incurred in soliciting or procuring new tenants for space in the Building, and
leasing, including but not limited to finders’ fees, brokers’ fees, legal fees and advertising
costs;

     (ii) expenses for which Landlord is reimbursed by another source, including, but not limited
to, repair or replacement of any items covered by warranty;

     (iii) the costs of any repair, rebuilding or other work necessitated by condemnation, fire,
windstorm or other insured casualty or hazard;

9

 

     (iv) cost of installing any special facilities such as a cafeteria, health club or similar
facilities

     (v) any costs for services rendered by any person or entity related to or affiliated with
Landlord which is in excess of commercially reasonable rates for such services; and

     (vi) the cost of any special service rendered to a tenant of the Building which is not
rendered generally to other tenants;

     Landlord shall repair and maintain, secure and keep all parts of the Common Areas, including,
but not limited to, lobbies, stairs, elevators, corridors and restrooms, the windows of the
Building, the parking area, the landscaping and all other Common Areas in good condition and
repair, in a clean and sanitary and safe condition, well-lit, and in compliance with all
applicable legal requirements and in accordance with standards for a first class office building
in the market.

     If for any reason, including imposition of governmental requirements, laws or regulations,
Landlord shall make an expenditure, directly or indirectly, which is intended to reduce the energy
consumption for the Building and which, by generally accepted accounting principles would be
treated as a capital expenditure, the annual Operating Expenses of the Building shall also
include, to the extent of savings achieved, the amortization of such capital expenditure based
upon a useful life acceptable to the appropriate taxing authority.

     In the event that any local, state or federal government shall, by any legally enforceable
legislative, administrative or judicial action, whether by ordinance, act, statue, order, mandate,
rule, regulation or otherwise, require during the Term of this Lease any alteration of or
improvement to any portion of the Building, excluding the Premises or any premises leased or
available to be leased by other tenants of the Building (a “Mandated Alteration”), which, by
generally accepted accounting principles would be treated as a capital expenditure, the, provided
that such Mandated Alteration is the result of the adoption of a new or changed ordinance, act,
statute, order mandate, rule or regulation or interpretation thereof not existing on the
Commencement Date of this Lease, the annual Operating Expenses of the Building shall also include
the annual amortization of such capital expenditure based upon a useful life of not less than the
greater of (i) its useful life (determined in accordance with generally accepted accounting
principles), or (ii) five (5) years.

     In the event that Landlord shall pay or incur any extraordinary Operating Expenses at any time
during the Term of this Lease that would, in accordance with generally accepted accounting
principles, be expenses in the year paid or incurred, but for purposes of assessing Tenant for its
proportionate share of increases in Operating Expenses, Landlord elects to amortize such expenses
over more than a single year, then the Operating Expense for the year in which such

10

 

     expenses are paid or incurred and for each year thereafter over which such expenses are
amortized shall include the amount of such expenses that are amortized during such year;
provided however, that in the event that such extraordinary expenses are paid or incurred
in the Base Year, the Operating Expenses for the Base Year shall not include either such
expenses or the amortized amount of such expenses.

     “Tenant’s Proportionate Share” shall be calculated by dividing the Net
Rentable Area of the Premises by the Net Rentable Area of the Building. Tenant’s
Proportionate Share shall be 52.58% (provided, however, that Tenant’s Proportionate Share
shall be 50% until Tenant’s obligation to pay rent commences as to the First Floor Space,
as described in Section 5.1 above) as of the date of this Lease; however, this percentage
is subject to change in the event of any change in the Net Rentable Area of the Building,
provided that no such adjustment shall increase Tenant’s Proportionate Share without
Tenant’s prior consent.

     The term “Taxes” shall include (grossed up to reflect 95% occupancy in the event less
than 95% of the building is occupies by tenants) every type of tax, charge or other amount
assessed against the Building or upon the Real Property upon which the Building is located,
together with any expenses for tax consulting services and legal services in appealing or
protesting such taxes. The term Taxes shall not include any income taxes, capital stock,
inheritance, estate, gift or any other taxes imposed upon or measured by Landlord’s gross
income or profits, including gross receipts taxes, unless the same shall be imposed in lieu
of real estate taxes or other ad valorem taxes.

     The “Base Year” shall be calendar year 2003. The term “Comparison Year” shall be each
calendar year of the Term after the Base Year.

     (b) Reimbursement of Operating Expenses and Taxes. If in any Comparison Year, the
Operating Expenses paid or incurred for such year shall exceed the Operating Expenses paid
or incurred in the Base Year, and/or the Taxes paid or incurred for such year shall exceed
the Taxes paid or incurred in the Base year, Tenant shall pay as Additional Rental for each
Comparison Year, Tenant’s Proportionate Share of such excess as and when specified below.

     (c) Estimates of Operating Expenses and Taxes. Prior to the actual determination of
the Operating Expenses and Taxes for the Comparison Year, Landlord may, if it so elects and at any
time or from time to time during such Comparison Year, estimate the amount of such Operating
Expenses and Taxes that will be paid or incurred in such year. If, in the estimation of Landlord,
the Operating Expenses for the Comparison Year will exceed the Operating Expenses for the Base
Year, and/or the Taxes for the Comparison Year will exceed the Taxes for the Base Year, Landlord
may give Tenant written notice of the amount of such estimated excess and the amount of such excess
that will be due each month from Tenant. In such event, Tenant shall,

11

 

subsequent to receipt of such written notice, pay monthly Tenant’s Proportionate Share of such
excess at the same time and in the same manner as Base Rental is due from Tenant hereunder.

     (d) Annual Reconciliation. Within ninety (90) days after the end of each calendar year
or as soon after such ninety (90) day period as practicable, Landlord will deliver to Tenant a
statement of amounts payable under Section 6.2 (c) for such calendar year prepared and certified by
Landlord (“Landlord’s Statement”). Landlord’s Statement will be final and binding upon Landlord and
Tenant unless Tenant objects to it in writing to Landlord within sixty (60) days after it is given
to Tenant and it is subsequently determined that Landlord made a material error. Landlord’s
Statement shall set forth, in reasonable detail, the total amount of Operating Expenses (broken
down by cost categories) during the applicable period. Within ten (10) days after receipt of
Tenant’s request therefor, Landlord shall provide to Tenant the method of calculating Tenant’s
Proportionate Share of Operating Expenses and Taxes. If the total amount Tenant actually paid for
estimated increases in Operating Expenses and Taxes is less than Tenant’s Proportionate Share of
the actual increase as shown on Landlord’s Statement, Tenant shall pay to Landlord as Additional
Rental in one lump sum the difference between the total amount actually paid by Tenant for such
Comparison Year and the amount Tenant should have paid pursuant to subparagraph (b) above; this
lump sum payment shall be made within thirty (30) days of Tenant’s receipt of Landlord’s statement
therefor; or if the total amount Tenant actually paid for estimated increases in Operating Expenses
and Taxes is more than Tenant’s Proportionate Share of the actual increase, then Landlord shall
remit the excess to Tenant within thirty (30) days of the making of such determination or, at
Landlord’s election, credit such amount against the next monthly installment of Base Rental.

     (e) Prorations. If the Commencement Date is other than January 1 or if the Expiration
Date is other than December 31, Tenant’s Proportionate Share of any increase in Operating Expenses
and Taxes for such year shall be prorated based upon the actual number of days in the month. Even
if the Term has expired, and Tenant has vacated the Premises when the final determination is made
of Tenant’s Proportionate Share of Operating Expenses and Taxes for the year in which this Lease
expires, Tenant shall pay any increase due over the estimated amount paid and conversely any
overpayment made shall be rebated by Landlord to Tenant, all as specified above.

     (f) Audit. Tenant shall have the right to have Landlord’s books and records pertaining
to Operating Expenses for the Base Year of any Comparison Year during the Term of this Lease
reviewed, copied and audited (“Tenant’s Audit”) provided that (i) such right shall not be exercised
more than once during any calendar year; (ii) if Tenant elects to conduct Tenant’s audit, Tenant
shall provide Landlord with written notice thereof no later than forty-five (45) days following
Tenant’s receipt of Landlord’s statement of Operating Expenses for the year to which Tenant’s Audit
will apply; (iii) Tenant shall have no right to conduct Tenant’s Audit if Tenant is, either at the
time Tenant forwards Landlord written notice that Tenant’s Audit will be conducted or at any time
during Tenant’s Audit, then in default under this Lease; (iv) conducting Tenant’s

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Audit shall not relieve Tenant from the obligation to pay Tenant’s Proportionate Share of
Operating Expenses, as billed by Landlord, pending the outcome of such audit; (v) Tenant’s right
to conduct such audit for any calendar year shall expire ninety (90) days following Tenant’s
receipt of Landlord’s statement of Operating Expenses for such year, and if Landlord has not
received written notice of such audit within such ninety (90) day period, Tenant shall have waived
its right to conduct Tenant’s Audit for such calendar year; (vi) Tenant’s Audit shall be conducted
by a Certified Public Accountant; (vii) Tenant’s Audit shall be conducted at Landlord’s office
where the records of the year in question are maintained by Landlord, during Landlord’s normal
business hours; and (viii) Tenant’s Audit shall be conducted at Tenant’s sole cost and expense,
unless such audit demonstrates to Landlord’s reasonable satisfaction that Landlord has overstated
the Operating Expenses for the year audited by more than three percent (3%), in which case
Landlord shall reimburse Tenant for any overpayment of Tenant’s Proportionate Share of such
Operating Expenses, as well as Tenant’s actual reasonable costs incurred in conducting Tenant’s
Audit, within thirty (30) days of Landlord’s receipt of documentation reasonably acceptable to
Landlord reflecting the amount of such overpayment and cost of Tenant’s Audit.

7. Services to be Furnished by Landlord.

7.1 Landlord agrees to furnish Tenant the following defined services:

     (a) Hot and cold water at those points of supply provided for general use of other tenants in
the Building.

     (b) Central heat, ventilation and air conditioning (“HVAC”) at such temperatures and in such
amounts as are required to satisfy the following specifications: (i) during Spring and Summer
months, interior temperatures ranging from 68-76 degrees fahrenheit, with relative humidity between
40-60%, and (ii) during Fall and Winter months, interior temperatures ranging from 68-72 degrees
fahrenheit, with relative humidity between 40-60%, HVAC services at times other than “Normal
Building Hours” shall be furnished only upon the request of Tenant on the day such usage is
required. Tenant shall bear the entire cost of such additional services as such cost is determined
by Landlord periodically.

     (c) Routine maintenance and electric lighting service for all Common Areas and Service Areas
of the Building in the manner and to the extent deemed by Landlord to be standard.

     (d) Janitorial service, five days per week, exclusive of normal business holidays and high
dusting at least four (4) times each month. If, however, Tenant’s floor covering or other
improvements require special treatment, Tenant shall pay the additional cleaning cost attributable
thereto as additional rent upon presentation of a statement therefor by Landlord or a
representative of Landlord.

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     (e) Subject to the provisions of Paragraph 12, facilities to provide all electrical
current required by Tenant in its use and occupancy of the Premises.

     (f) All Building Grade fluorescent bulb replacement in the Premises and fluorescent and
incandescent bulb replacement in the Common Areas and Service Areas.

     (g) Access to the Building during Normal Building Hours; provided that Tenant shall
have access to the Building and Premises on a 24 hours per day, 7 days per week basis,
subject to Landlord’s reasonable security regulations and requirements. Landlord, however,
shall have no liability to Tenant, its employees, agents, invitees, licensees for losses due
to theft or burglary, or for damages done by unauthorized persons on the Premises and
neither shall Landlord be required to insure against any such losses. Tenant shall cooperate
fully in Landlord’s efforts to maintain security in the Building and shall follow all
regulations promulgated by Landlord with respect thereto.

     7.2 The failure by Landlord to any extent to furnish, or the interruption or termination of,
the defined services in whole or in part, resulting from causes beyond the reasonable control of
Landlord shall not render Landlord liable in any respect nor be construed as an eviction
(constructive or otherwise) of Tenant, nor work an abatement of rent, nor relieve Tenant from
obligation to fulfill any covenant or agreement of this Lease.

     7.3 Should any of the equipment or machinery used in the provision of defined services for any
cause cease to function properly, Tenant shall have no claim for offset or abatement of rent or
damages on account of an interruption in service occasioned thereby or resulting therefrom.
Notwithstanding the foregoing, if Building services to be provided by Landlord to Tenant pursuant
to the Lease are interrupted as a result of Landlord’s negligence or Landlord’s default under this
Lease, and such interruption continues for more than three (3) business days after Tenant gives
Landlord written notice of such interruption; and if such interruption renders all or a portion of
the Premises untenantable, and if the restoration of such services is within the reasonable control
of Landlord, then Base Rent and Tenant’s obligation to pay Tenant’s Proportionate Share of
Operating Expenses shall abate beginning on the fourth (4th) business day of such
interruption and continuing until such services are restored. Such abatement shall be in a
proportion corresponding to the proportion of the Premises so rendered untenantable.

     7.4 Except as otherwise expressly provided herein, Landlord shall not be required to make any
repairs to the Premises.

     7.5 (a) Notwithstanding any provision in this Lease to the contrary, no services shall be
rendered to Tenant under this Lease if, in Landlord’s opinion, such service would, within the
meaning of the United States Treasury Income Tax Regulation Section 1.512(b)-l (c)(5), be rendered
to Tenant primarily for its convenience and would be other than a service that is usually or
customarily rendered to lessees in first class office buildings in Maitland, Florida (a “Special
Service”). If Tenant shall desire any Special Service, Tenant may (subject to Landlord approval)
obtain the same from Landlord’s independent contractor if the same is available therefrom. Tenant
shall negotiate for such Special Service directly with such independent contractor, and

14

 

shall separately compensate the independent contractor (at rates to be mutually agreed upon by
Tenant and such independent contractor) for any Special Services the independent contractor
renders to Tenant. Any Special Services rendered to Tenant by the independent contractor shall be
rendered by the independent contractor for its own account and at its sole cost and expense.
Landlord acknowledges that (except as provided in Paragraph 7.1 (d) hereof with respect to extra
janitorial services) the services contemplated to be provided by Landlord pursuant to Section 7.1
hereof are not Special Services.

     (b) Any service, other than a Special Service, required to be rendered to Tenant by Landlord
hereunder shall be rendered on behalf of Landlord by Landlord’s independent contractor, unless
Landlord elects to render such services directly to Tenant, provided that such delegation shall
not relieve Landlord of its obligations under this Lease,

     8. Improvements to be Made by Landlord. Except as otherwise provided in the Work
Letter, all installations and improvements now or hereafter placed on the Premises at Tenant’s
request or direction, other than Base Building Improvements shall be for Tenant’s account and at
Tenant’s cost (and Tenant shall pay ad valorem taxes and assessments and increased insurance
thereon or attributable thereto),

     9. Graphics.

     9.1 Landlord shall provide and install, at Landlord’s cost, all letters or numerals
at the entryway .to the Premises. All such letters and numerals shall be in the standard graphics
for the Building and no others shall be used or permitted on the Premises without Landlord’s prior
written consent.

     9.2 Signage, wall coverings, graphics, or furniture that will be visible from the exterior
entryways must first be approved, in writing, by Landlord, which approval shall not be unreasonably
withheld or delayed.

     9.3 Notwithstanding anything to the contrary contained herein, Tenant shall be entitled to
have a sign identifying Tenant on the Maitland Boulevard side of the Building provided, the form,
size, graphics, location and all other aspects of such sign shall be subject to Landlord’s approval
(which shall not be unreasonably withheld, delayed or conditioned) and shall comply with all codes,
ordinances and other legal requirements of the City of Maitland. Additionally, Landlord and Tenant
agree that Tenant shall be entitled to exterior monument, lobby directory, and entry signage
utilizing the standard graphics applicable to the Building, which signage shall not be less than
the maximum signage available to any other tenant at the Real Property. All signage installed
pursuant to this Section 9.3 shall be at Tenant’s cost.

     9.4 Tenant may apply the Allowance (as described in Section 4.5 of the Work Letter) to pay any
or all of the signage costs for which Tenant is liable under this Section 9.

     10. Care of the Premises and Building.

     10.1 Landlord shall, at its cost and expense (subject to inclusion as Operating
Expenses, to the extent permitted under Section 6.2 above), keep the roof, foundation, outer

15

 

walls, buried conduits and structural components of the Premises and Building and the equipment
used to provide the services referenced in paragraph 7 above in good condition and repair
consistent with standards of comparable first class buildings in the market; provided, however, if
any of the repairs to the Premises or the Building for which Landlord
is responsible should be
required as a result of the acts of Tenant or Tenant’s agent, employees, invitees, visitors or
contractors, then Tenant shall pay all reasonable expenses incurred by Landlord in making such
repairs.

     10.2 Tenant, at its sole cost and expense, except for the repairs required to be made by
Landlord pursuant to the terms of this Lease, shall maintain the Premises in good order, condition
and repair and shall also keep the Premises in a clean and sanitary and safe condition. Tenant
shall not commit or allow any waste to be committed to any portion of the Premises, and at the
termination of this Lease Tenant shall deliver the Premises to Landlord in as good condition as
existed when the Premises was initially delivered by Landlord to Tenant, ordinary wear and use, and
damage by fire or other casualty, excepted.

     10.3 All repairs by Tenant shall be effected in compliance with all applicable laws; provided,
however, if Tenant fails to make such repairs or replacements promptly, Landlord may, at its
option, after ten (10) days prior notice to Tenant and Tenant’s failure to commence diligently
making such repairs within such ten (10) day period, make repairs or replacements required to
effectuate such compliance with laws, and Tenant shall pay the cost thereof to the Landlord within
ten (10) days of Landlord’s demand therefor accompanied by documentation substantiating such cost,
as additional rent.

     11. Alterations by Tenant.

     11.1 Tenant shall not make or allow to be made any alterations or improvements to the
Premises, install any vending machines on the Premises, or place signs on the Premises which are
visible from outside the Premises, without first obtaining the prior written consent of Landlord in
each such instance, which consent may be given in such reasonable conditions as Landlord may elect.
Should Landlord consent to any such alterations or improvements, Tenant shall cause all such
alterations and improvements to be done in compliance with all applicable laws.

     11.2 Any and all alterations to the Premises shall become the property of Landlord upon
termination of this Lease (except for movable equipment or furniture owned by Tenant). Landlord
may, nonetheless, at the time of approving plans for, or granting consent to, Tenant’s installation
of fixtures, equipment or improvements, notify Tenant that it will be required to remove such
fixtures, equipment and other improvements installed on the Premises and restore the Premises to
Building Grade. If Landlord so requires, and Tenant fails to remove such improvements, Landlord may
remove such improvements at Tenant’s cost, and Tenant shall pay Landlord on demand the cost of
restoring the Premises to Building Standard. All personal property of Tenant, including but not
limited to, its furniture, trade fixtures, furnishings and equipment, shall be removed by Tenant
upon termination of this Lease.

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     12. Use
of Electrical Services by Tenant

     12.1 Tenant’s electrical equipment shall be restricted to that equipment which individually
does not require voltage other than 120 volts, single phase; or 208 volts, 3-phase. Tenant’s
lighting shall not have a design load greater than 2 watts per square foot of Net Usable Area in
the Premises. Cumulatively, Tenant’s equipment and lighting shall not have an electrical design
load greater than an average of 5 watts per square foot of Net Usable Area in the Premises.
Landlord acknowledges and agrees that Tenant shall have its computer data storage center (the
“Data Center”) within the Premises. If, in Landlord’s reasonable judgment, the Data Center causes
the Building electrical design load to be exceeded, or otherwise adversely affects the temperature
or air quality otherwise maintained by the heating, ventilating and air conditioning (“HVAC”)
system in the Premises, Landlord may require Tenant, at Tenant’s sole cost, to install a
supplementary HVAC system to service the Data Center and a separate meter to measure the Data
Center electrical use, and Tenant would then separately pay the cost of such metered usage. Tenant
would then be responsible for the maintenance of such supplemental HVAC system. If Tenant disagrees
that the Data Center is causing the electrical design load to be exceeded, Landlord and Tenant
shall mutually select an independent electrical engineer to determine if the design load is being
exceeded and the causes therefor, and to recommend an equitable solution. The fee charged by such
independent engineer shall be shared equally by the parties, unless said engineer determines that
Landlord’s judgment was materially in error. Tenant shall have the right to install the Data Center
and a supplemental HVAC. Tenant shall have the right, upon expiration of the Lease Term, to remove
the Data Center and supplemental HVAC if Tenant paid the costs of acquiring and installing such
items (outside of the Allowance); otherwise, such items shall remain the property of Landlord.

     12.2 If Tenant requests that electrical services exceed the design loads as per Paragraph 12,
Subparagraph 12.1, Landlord may refuse to consent (which consent shall not be unreasonably
withheld) to usage or may consent with written approval, that such equipment may remain in the
Premises subject to the following:

     (a) Tenant shall pay for all costs of installation and maintenance of transformers,
submeters, wiring, air conditioning and other items required by Landlord, at Landlord’s
discretion, to accommodate Tenant’s excess design loads and capacities.

     (b) Tenant shall pay to Landlord, upon demand, the cost of the excess demand and
consumption of electrical service at rates determined by Landlord which shall be in
accordance with any applicable laws.

     (c) Landlord may, at its option, upon not less than thirty (30) days’ prior written
notice to Tenant, discontinue the availability of such extraordinary utility service. If
Landlord gives any such notice, Tenant may contract directly with the public utility for
the supplying of such utility service to the Premises.

     12.3 If Tenant’s consumption of electrical services exceeds the rated design loads as per
Paragraph 12, Subparagraph 12.1, then Landlord may require that Tenant comply with the provisions
of Subparagraphs 12.2(a) and (b) above.

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     13. Parking. As long as Tenant is not in default under this Lease beyond any
applicable cure period, Landlord will provide Tenant during the Term with unassigned, nonexclusive
parking spaces in an amount equal to 4.25 spaces per 1,000 square feet of the Net Rentable Area of
the Premises within the parking areas surrounding the Building, as shown on the Site Plan. The
spaces provided to Tenant within such ratio shall include ten (10) exclusive spaces, reserved for
Tenant’s use, in the location shown on the Site Plan which spaces shall be marked “Reserved”. Such
parking spaces may be used only by principals, employees, guests and invitees of Tenant. Landlord
reserves the right to alter the methods used to control parking and the right to establish such
controls and reasonable rules and regulations (such as parking stickers to be affixed to vehicles)
regarding parking that Landlord may deem desirable. Without liability, Landlord will have the right
to tow or otherwise remove vehicles improperly parked, blocking ingress or egress lanes, or
violating parking rules, at the expense of the offending tenant and/or owner of the vehicle.
Landlord further reserves the right to reduce the number of spaces in the Building parking area
and/or change access thereto, provided that some manner of reasonable access to the Building
parking area remains after such change, and such changes do not affect the number of parking spaces
granted to Tenant under this Lease or result in less than 4.25 spaces per 1,000 square feet of the
Net Rentable Area of the Premises being provided to Tenant within the locations shown on the Site
Plan.

     14. Laws, Regulations and Rules.

     14.1
In the use of the Premises and the operation of Tenant’s business at the Premises, Tenant
shall comply with all applicable laws, ordinances, rules and regulations of any governmental
entity, agency or authority having jurisdiction of the Premises or Tenant’s use of the Premises.

     14.2 Tenant shall comply with such reasonable Building Rules and Regulations adopted and
amended by Landlord from time to time, the current Building Rules and Regulations being attached
hereto as Exhibit “D”, and will cause all of its customers, licensees, invitees, agents and
employees to do so. All changes to such rules will be furnished by Landlord to Tenant in writing
and may not be enforced against Tenant unless and until Tenant has notice of same. Landlord shall
not discriminate against Tenant in the enforcement of Building Rules and Regulations.

     15. Entry by Landlord. Tenant shall permit Landlord or its agents or representatives
to enter into and upon any part of the Premises at all reasonable hours (and in emergencies at all
times), upon reasonable notice (except in the case of emergencies) to inspect the condition,
occupancy or use of the Premises; to show the Premises to prospective purchasers, mortgagees,
tenants or insurers; or to clean or make repairs, alterations or additions to the Premises. Tenant
shall not be entitled to abatement or reduction of rent by reason of this right of entry.

     16. Assignment and Subletting.

     16.1 Tenant shall not voluntarily or by operation of law assign, license, franchise,
transfer, mortgage, hypothecate, pledge, or otherwise encumber (collectively “Transfer”) all or
any part of this Lease or any interest therein, and shall not sublet, franchise, change ownership
or

18

 

license (also included as a “Transfer”) all or any part of the Premises, without first obtaining
the prior written consent of Landlord, which consent shall not be unreasonably withheld or
delayed. Any attempted Transfer without such consent being first had and obtained shall be wholly
void and shall confer no rights upon any third parties. Without in any way limiting Landlord’s
right to reasonably refuse to give such consent, Landlord hereby reserves the right to give such
consent if in Landlord’s reasonable discretion (i) the quality of the business operation conducted
on the Premises is or may in any way be adversely affected during the Term of the Lease by such
proposed Transfer, (ii) the financial net worth of a proposed new tenant is less than that of
Tenant, (iii) the proposed new tenant is a governmental agency or instrumentality thereof, or (iv)
the proposed Transfer would cause a violation of another lease for space in the Building or would
give an occupant of the Building a right to cancel its lease. Furthermore, Landlord hereby
reserves the right to condition Landlord’s consent to any Transfer upon Landlord’s receipt from
Tenant of a written agreement, in form and substance acceptable to Landlord, pursuant to which
Tenant shall pay over to Landlord all rent or other consideration received by Tenant from any such
subtenant or assignee, either initially or over the term of the assignment or sublease, in excess
of the Rent called for hereunder, or, in case of the sublease of a portion of the Premises, in
excess of such rent fairly allocable to such portion, after appropriate adjustments to assure that
all other payments called for hereunder are taken into account, and after deducting from such
excess Tenant’s reasonable costs incurred in connection with any such assignment or subleasing
(the “Transfer Premium”). Consent by Landlord to any Transfer of the Premises or any interest
therein shall not be waiver of Landlord’s rights under this Paragraph 16 as to any subsequent
transfer.

     16.2 In the event that Tenant desires at any time to Transfer the Premises or any portion
thereof, Tenant shall submit to Landlord at least thirty (30) days prior to the proposed effective
date of the Transfer (“Proposed Effective Date”), in writing: (a) a request for permission to
transfer, setting forth the Proposed Effective Date, which shall be no less than forty-five (45)
days after the sending of such notice; (b) the name of the proposed subtenant or assignee or other
party; (c) the nature of the business to be carried in the Premises after the Transfer; (d) the
terms and provisions of the proposed Transfer; (e) a copy of all existing executed and/or proposed
documentation pertaining to the Transfer; and (i) current financial statements (audited, if
available) of Tenant and the proposed subtenant or assignee; and such additional information that
Landlord may reasonably request in order to make a reasoned judgment.

     16.3 If Tenant proposes to assign this Lease, Landlord may, at its option, exercisable upon
written notice to Tenant within twenty (20) days after receipt of the notice from Tenant set forth
in Paragraph 16.2 above, elect to recapture the Premises and terminate this Lease. If Tenant
proposes to sublease all or part of the Premises, Landlord may, at its option exercisable upon
written notice to Tenant, within thirty (30) days after receipt of the notice from Tenant set forth
in Paragraph 16.2 above, elect to recapture such portion of the Premises as Tenant proposes to
sublease and, upon such election by Landlord, this Lease shall terminate as to the portion of
Premises recaptured. In the event a portion only of the Premises is recaptured the Basic Rent under
this Lease and Tenant’s Pro Rata Share shall be proportionately reduced. If Landlord does not elect
to recapture pursuant to this Paragraph 16.3, Tenant may thereafter enter into a valid assignment
or sublease with respect to the Premises provided Landlord, pursuant to this

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Paragraph 16, consents thereto, and provided further that (a) such assignment or sublease is
executed within ninety (90) days after notification to Landlord of such proposal, and (b) the
rental therefrom is not more than that stated in such notification.

     16.4 If this Lease is assigned, or if the Premises or any part thereof is sublet or occupied
by anybody other than Tenant, Landlord may collect rent from the assignee, subtenant or occupant
and apply the net amount collected to the rent herein reserved and retain any excess rent so
collected, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of
Tenant’s covenant set forth in the first sentence of paragraph 16.1 above, nor shall such
assignment, subletting, occupancy or collection be deemed an acceptance by Landlord of the
assignee, subtenant or occupant as tenant, or a release of Tenant or any guarantor from the further
performance by Tenant of covenants on the part of Tenant herein contained, or affect the continuing
primary liability of Tenant hereunder (which, following any assignment, shall be joint and several
with the assignee). If Landlord consents to a Transfer, (i) the terms and conditions of this Lease
shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed
consent to any further Transfer by either Tenant or a transferee, (iii) Tenant shall deliver to
Landlord, promptly after execution, an original executed copy of all documentation pertaining to
the Transfer in form reasonably acceptable to Landlord, and (iv) Tenant shall furnish upon
Landlord’s request a complete statement, certified by an independent certified public accountant,
or Tenant’s chief financial officer, setting forth in detail the computation of any Transfer
Premium Tenant has derived and shall derive from such Transfer. Landlord or its authorized
representatives shall have the right at all times to audit the books, records and papers of Tenant
relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium
respecting any Transfer shall be found understated, Tenant shall within thirty (30) days after
demand, pay the deficiency, and if understated by more than two percent (2%), Tenant shall pay
Landlord’s costs of such audit.

     16.5 Notwithstanding any assignment or sublease, or any indulgences, waivers or extensions of
time granted by Landlord to assignee or sublessee, or any failure by Landlord to take action
against any assignee or sublessee, as a condition to Landlord taking recourse against Tenant,
Landlord shall provide Tenant with notice of any default of any assignee or sublessee and agrees
that Tenant shall have the option to cure such default within the cure period provided in this
Lease prior to Landlord proceeding against Tenant, which Landlord shall have the right to do
without having taken action against or joined such assignee or sublessee, except that Tenant shall
have the benefit of any indulgences, waivers and extensions of time granted to any such assignee or
sublessee.

     16.6 If Tenant herein under is a corporation, an unincorporated association, a limited
liability company or a partnership, the transfer, merger, assignment or hypothecation of any stock
or interest in such corporation, association, company or partnership in the aggregate in excess of
fifty percent (50%) shall be deemed an assignment within the meaning and provisions of this
paragraph 16; provided, however, that: (a) an assignment of any such stock or interest with respect
to a corporation or partnership whose shares or partnership interests are publicly traded, (b) an
assignment or sublease to any corporation which controls, is controlled by or is under common
control with Tenant, or (c) an assignment or sublease by a shareholder or member to his spouse or
children, are all excepted form the foregoing provision.

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     16.7 In the event that Tenant files any type of petition in bankruptcy or has such petition
filed against it, and Landlord cannot elect to terminate this Lease pursuant to law, and in the
event that the trustee or receiver appointed by the bankruptcy court assumes or adopts this Lease
and fails or refuses to give Landlord adequate assurance of compliance with this Lease pursuant to
law, then Landlord shall have the right to terminate this Lease within thirty (30) days after
gaining knowledge of such failure to give such adequate assurances, or within (30) days after
receipt of written notice from said trustee or receiver of refusal to give such adequate
assurances, whichever is earlier.

     16.8 Landlord may make reasonable charges to Tenant for any reasonable attorneys’ fees or
expenses incident to any documentation relating to any proposed Transfer by Tenant.

     16.9 Landlord’s right to assign its interest under this Lease shall in all events remain
unqualified and unrestricted.

     16.10 Notwithstanding any other provision in this Section 16, Tenant shall have the right,
upon thirty (30) days prior notice to Landlord, to assign its interest in this Lease, or sublease
all or a portion of the Premises, to any entity which controls Tenant, which is controlled by
Tenant or under common control with Tenant (any such entity, a “Tenant Affiliate), provided that
Tenant shall deliver to Landlord, within five (5) business days after the date of such assignment
or subletting, an executed copy of the assignment or sublease wherein such Tenant Affiliate assumes
the obligations of Tenant under this Lease (other than, in the case of a sublease, the payment of
rent due hereunder), and agrees to be bound by the terms, conditions and covenants of this Lease.
No such assignment or subletting shall relieve Tenant from liability for the payment of rent or
other sums herein provided or from the obligation to keep and be bound by the terms, conditions and
covenants of this Lease.

     16.11 Tenant shall have the right to assign this Lease or to sublet the Premises to any
corporation into which Tenant may merge or to any corporation arising out of a consolidation of
Tenant with another corporation or to a corporation or other entity acquiring; (i) all or
substantially all the assets of Tenant; or (ii) all of the issued and outstanding voting stock of
Tenant (any of the preceding, an “Acquiring Entity”). Such right to assign this Lease or to sublet
the Premises to an Acquiring Entity shall be expressly conditioned upon Tenant delivering to
Landlord, within five (5) business days after the date of such assignment or subletting, an
executed copy of the assignment or sublease in a form reasonably acceptable to Landlord wherein the
Acquiring Entity assumes the agreements, obligations and covenants set forth in this Lease to be
observed and performed by Tenant and agrees to be bound by the terms, conditions and covenants of
this Lease. Any such assignment or subletting shall not relieve Tenant from liability for the
payment of rent or other sums herein provided or from the obligation to keep and be bound by the
terms, conditions and covenants of this Lease.

     17. Covenants Against Liens. Landlord’s interest in the Premises shall not be subject
to liens for improvements made by Tenant, and Tenant shall have no power or authority to create any
present estate, reversion or other estate of Landlord in the Premises herein demised or on the
Building or other improvements thereon as a result of improvements made by Tenant or for any other
cause or reason. All materialmen, contractors, artisans, mechanics and laborers and

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other persons contracting with Tenant with respect to the Premises or any part thereof, are hereby
charged with notice that such liens are expressly prohibited and that they must look solely to
Tenant to secure payment for any work done or material furnished for improvements by Tenant or for
any other purpose during the term of this Lease. Tenant shall indemnify Landlord against such loss
or expenses incurred as a result of the assertion of any such lien, and Tenant covenants and
agrees to discharge such lien, bond off the lien in accordance with Florida law, or insure over
such lien to Landlord’s satisfaction, within ten (10) business days of the assertion of any such
lien or claim of lien. If Tenant fails to discharge, bond off or insure over any such liens within
the time period allowed, Landlord may do so in Tenant’s behalf and Tenant shall agree to reimburse
Landlord for any associated costs including attorney fees. Tenant shall advise all persons
furnishing designs, labor, materials or services to the premises in connection with Tenant’s
improvements thereof of the provisions of this Paragraph.

     18. Property Insurance.

     18.1 Landlord shall maintain and pay for fire and extended coverage insurance on the
Building and the Premises in such amounts as Landlord’s mortgagees shall require (but in no event
less than full replacement cost), or as Landlord shall deem appropriate for the Building. Payments
for losses thereunder shall be made solely to Landlord or the mortgagees of Landlord as their
interests shall appear.

     18.2 Tenant shall maintain, at its expense, in an amount equal to full replacement cost, fire
and extended coverage insurance from a company qualified to do business in the State of Florida and
acceptable to Landlord, on all of its personal property, including removable trade fixtures,
located in the Premises and in such additional amounts as are required to meet Tenant’s obligations
pursuant to Section 21 hereof.

     18.3 Tenant shall, at Landlord’s request from time to time, provide Landlord with current
certificates of insurance evidencing Tenant’s compliance with this Section 18 and Section 19.

     18.4 Tenant shall obtain the agreement of Tenant’s insurers to notify Landlord at least thirty
(30) days prior to cancellation or expiration of any such insurance coverage required of Tenant.

     18.5 Landlord and Tenant intend that their respective Building loss risks shall be borne by
reasonable insurance carriers to the extent above provided, and therefore, notwithstanding any
provision contained in this Lease to the contrary (including but not limited to any liability
provision contained in this Lease, (i) Landlord hereby releases Tenant from any liability for
damage or destruction to the Premises or any other portion of the Building or Real Property, and
Landlord hereby waives any and all claims and right of recovery against Tenant for damage or loss
caused by or resulting from fire or other perils, to the extent that any such claims for damages or
losses are or would be covered by any property insurance policies which Landlord does or is
required to maintain hereunder, without regard to deductible amounts, and (ii) Tenant hereby
releases Landlord from any liability for damage or destruction to the Premises, or Tenant’s trade
fixtures or other personal property, and Tenant hereby waives any and all claims

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and right of recovery against Landlord for damage or loss caused by or resulting from fire or
other perils, to the extent that any such claim for damages or losses are or would be covered by
any property insurance policies which Tenant does or is required to maintain hereunder without
regard to deductible amounts. Landlord and Tenant shall each look to their respective insurance
coverage for recovery of any insured property damage. Each of Landlord and Tenant shall cause any
property insurance policies which it maintains to contain a provision whereby the insurer waives
any (i) rights of subrogation and (ii) rights of recover against the other party. Both Landlord
and Tenant agree to give each insurance company which has issued to its policies of property
insurance written notice of the terms of said mutual waivers and to cause said insurance policies
to be properly endorsed, if necessary, to prevent the invalidation thereof by reason of said
waivers and shall furnish to the other party a certificate of insurance or other written evidence
of such endorsement or that such endorsement is not required.

     19. Liability Insurance.

     19.1 Tenant and Landlord shall each maintain a policy or policies of commercial general
liability insurance with respect to their activities in and around the Building and in and around
the Real Property, with the premiums thereon fully paid for on or before due date, issued by and
binding upon an insurance company approved by Landlord, such insurance to afford minimum protection
of not less than $2,000,000 combined single limit coverage for bodily injury, property damage or
combination thereof. Tenant’s liability insurance shall name Landlord as an additional insured.

     19.2 Landlord shall not be required to maintain insurance against thefts within the Premises,
the Building or any project within which the Building is located.

     19.3 Throughout the period of its ownership of the Building, Landlord shall maintain
commercial general liability insurance with coverages, and in amounts, required by Landlord’s
lender, or in the absence of such a lender, as Landlord deems prudent, consistent with practices of
owners of comparable buildings in the market.

     20. Assumption of Risk.

     20.1 Except for personal injury caused by the negligence of Landlord or its agents, Landlord
shall not be liable to Tenant or Tenant’s customers, licensees, invitees, agents, guests or
employees for any injury or damages to its, his or their persons or Building by any cause
whatsoever, including, but not limited to acts or omissions of any other tenant in the Building,
construction defects, water, rain, sleet, fire, storms, negligence and accidents, breakage,
stoppage, or leaks of gas, water, heating, sewer pipes, boilers, wiring or plumbing or any other
defect in, on or about the Premises.

     20.2 Except and to the extent caused by the negligence or willful misconduct of Landlord or
its agents, Tenant shall indemnify, protect, and hold Landlord and its partners, subpartners, and
their respective officers, agents, servants, employees, and independent contractors, and each of
their respective successors and assigns (collectively, the “Indemnified Parties) harmless from, and
defend the Indemnified Parties against, (1) any and all claims or

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liability for any injury or damage to any person or property whatsoever occurring in, on or
about the Premises or any part thereof; (2) any and all claims or liability for any personal
injury occurring in, on or about the Common Areas when such injury is caused in part or in whole
by the act, neglect, fault or omission of any duty with respect to the same by Tenant, or Tenant’s
agents, contractors, employees or invitees; (3) any and all claims arising from any breach or
default in the performance of any obligation on Tenant’s part to be performed under the provisions
of this Lease, or arising from any act or negligence of Tenant, or any of Tenant’s agents,
contractors or employees; and (4) all costs, attorneys’ fees, expenses and liabilities incurred in
the defense of any such claim or any action or proceeding brought thereon. In case any action or
proceeding be brought against the Indemnified Parties by reason of any such claim, Tenant, upon
notice from Landlord, shall defend the same at Tenant’s expense by counsel reasonably satisfactory
to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk
of damage to property or injury to persons in, upon or about the Premises from any cause, other
than the negligence or misconduct of Landlord or Landlord’s agents, and Tenant hereby waives all
claims in respect thereof against the Indemnified Parties. Landlord shall not be liable for any
damages arising from any act or neglect of any other tenant in the Building. The provisions of
this Paragraph 20.2 shall survive the expiration or sooner termination of this Lease with respect
to any claims or liability arising in connection with any event occurring prior to such expiration
or termination.

     20.3 Except in connection with the negligence or willful misconduct of Tenant or
Tenant’s agents, Landlord shall indemnify, protect and hold Tenant and its respective
officers,
agents, servants, employees and independent contractors, and each of their respective
successors
and assigns (collectively, the “Tenant Indemnified Parties”) harmless from, and defend Tenant
Indemnified Parties against, (1) any and all claims arising from any breach or default in the
performance of any obligation on Landlord’s part to be performed under the provisions of this
Lease, or arising from any act or negligence of Landlord or its agents; and (2) all costs,
attorneys’ fees, expenses and liabilities incurred in the defense of any such claim or any
action or
proceeding brought thereon. In case any action or proceeding be brought against the Tenant
Indemnified Parties by reason of any such claim, Landlord, upon notice from Tenant, shall
defend the same at Landlord’s expense by counsel reasonably satisfactory to Tenant. The
provisions of this paragraph 20.3 shall survive the expiration or sooner termination of this
Lease
with respect to any claims or liability arising in connection with any event occurring prior
to
such expiration or termination.

     20.4 It is the agreement and understanding of the parties that the indemnifications set
forth in Sections 20.2 and 20.3 do not apply to property damage sustained by the Indemnified
Parties (under Section 20.2) or the Tenant Indemnified Parties (under Section 20.3), and that
such parties shall look to their respective property damage insurance policies with respect to
such
property damage.

     21. Casualty Damage.

     21.1 If the Premises or any part thereof shall be damaged by fire or other
casualty, Tenant shall give prompt written notice thereof to Landlord.

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     21.2 If the Building shall be so damaged that substantial alteration or reconstruction of
the Building shall, in Landlord’s sole opinion, be required (whether or not the Premises shall
have been damaged by such casualty) or in the event any mortgagee of Landlord should require
that the insurance proceeds payable as a result of a casualty be applied to the payment of the
mortgage debt or in the event of any material uninsured loss to the Building (notwithstanding
Landlord carrying full replacement cost insurance as required under the terms of this Lease),
Landlord may, at its option, terminate this Lease by notifying Tenant in writing of such
termination within ninety (90) days after the date of such damage.

     21.3 If Landlord does not thus elect to terminate this Lease, Landlord shall commence
and proceed with reasonable diligence to restore the Building to substantially the same
condition
in which it was immediately prior to the happening of the casualty, except that Landlord’s
obligation to restore shall not exceed the scope of the work required to be done by Landlord
in
originally constructing the Building (including the Common Areas) and installing Base Building
Improvements in the Premises, nor shall Landlord be required to spend for such work an amount
in excess of the insurance proceeds actually received by Landlord as a result of the casualty
to
the extent such proceeds are made available to Landlord by the first mortgagee.
Notwithstanding
the foregoing, if Landlord fails to commence restoration of the Building within ninety (90)
days
after the fire or other casualty, or fails to complete the restoration of the Building within
one
hundred eighty (180) days after the date on which Landlord commences restoration, then Tenant
shall have the right, to be exercised by written notice given to Landlord within ten (10)
business
days after the expiration of such 90 or 180 day period, as the case may be, to terminate this
Lease, in which event the Lease shall terminate 30 days after Landlord’s receipt of such
notice
and thereupon, neither party shall have any further liability under the Lease, except for
matters
accruing prior to such termination or obligations which survive the termination of the Lease.
Additionally, within ninety (90) days after the casualty, Landlord shall advise Tenant as to
whether Landlord has sufficient funds (from insurance proceeds and other sources) to complete
the restoration. If Landlord advises that it does not have sufficient proceeds, Tenant shall
have
the right, to be exercised by written notice given to Landlord within ten (10) business days
after
receipt of such advice, to terminate this Lease, in which event the Lease shall terminate 30
days
after Landlord’s receipt of such notice and thereupon, neither party shall have any further
liability under the Lease, except for matters accruing prior to such termination or
obligations
which survive the termination of the Lease.

     21.4 When the repairs described in the preceding Subparagraph have been completed
by Landlord, Landlord shall then complete the restoration of all improvements in excess of the
Base Building Improvements which are necessary to permit Tenant’s reoccupancy of the
Premises (including the installation of acoustical ceiling tile) pursuant to the final working
drawings and specifications approved by Landlord pursuant to the Work Letter (“Improvements
Restoration”). Notwithstanding the foregoing, if Landlord fails to complete Improvements
Restoration within ninety (90) days after completion of the restoration of the Building, then
Tenant shall have the right, to be exercised by written notice given to Landlord within ten
(10)
business days after the expiration of such 90 day period, to terminate this Lease, in which
event
the Lease shall terminate 30 days after Landlord’s receipt of such notice and thereupon,
neither
party shall have any further liability under the Lease, except for matters accruing prior to
such
termination or obligations which survive the termination of the Lease.

25

 

     21.5 Landlord shall not be obligated to expend for the completion of the Improvements
Restoration a sum in excess of a dollar amount equal to the dollar amount, if any, of the
Allowance (as defined in the Work Letter) (“Reconstruction Allowance”). Except for the
Reconstruction Allowance, all cost and expense of completing the Improvements Restoration
shall be borne by Tenant and the amount of such excess, as determined by Landlord, is herein
referred to as the “Reconstruction Excess.” Fifty percent (50%) of the Reconstruction Excess
(as
then estimated by Landlord) shall be paid by Tenant to Landlord, in cash, prior to
commencement of the Improvements Restoration. After Substantial Completion of the
Improvements Restoration, but prior to reoccupancy of the Premises by Tenant, Tenant shall pay
Landlord, in cash, an amount equal to ninety percent (90%) of the then unpaid balance of the
Reconstruction Excess (as then estimated by Landlord), As soon as a final accounting can be
prepared and submitted to Tenant, Tenant shall pay Landlord, in cash, the entire unpaid
balance
of the Restoration Excess, based on Landlord’s final cost. Each increment of the
Reconstruction
Excess payable by Tenant to Landlord shall be paid by Tenant within ten (10) days after a
written request therefor by Landlord to Tenant. Tenant shall not be entitled to receive any
credit
or payment with respect to any portion of the Reconstruction Allowance not actually spent upon
restoration of the Premises.

     21.6 Landlord shall not be liable for any inconvenience or annoyance to Tenant or
injury to the business of Tenant resulting in any way from such damage or the repair thereof.
Base Rent shall be abated during the time and to the extent the Premises are unfit for
occupancy
(in proportion to that portion of the Premises rendered untenantable); provided, however, the
Premises shall not be considered unfit for occupancy at any time that (i) such of the
Improvements Restoration has been completed so as to permit occupancy as evidenced by the
issuance of a Certificate of Occupancy or its equivalent for the Premises by the appropriate
governmental entity having jurisdiction over the Premises for the purpose of issuing such
certificate, or (ii) if no such certificate can be issued by any appropriate governmental
entity
under applicable laws, ordinances, or regulations, at such time as the Improvements
Restoration
have been substantially completed and tendered to Tenant and Tenant is legally permitted to
occupy and use the Premises for general office purposes.

     21.7 If the Premises or any other portion of the Building should be damaged by fire or
other casualty resulting from the intentional and willful misconduct of Tenant or any of
Tenant’s
customers, licensees, invitees, agents or employees, the rent hereunder shall not be
diminished
during the repair of such damage and Tenant shall be liable to Landlord for the cost of the
repair
and restoration of the Building caused thereby to the extent such cost and expense is not
covered
by Landlord’s insurance proceeds.

     22. Condemnation.

     22.1 If the whole or substantially the whole of the Building or the Premises should be
taken for any public or quasi-public use, by right of eminent domain or otherwise, or if it should
be transferred to the condemning authority in lieu of condemnation, then this Lease shall terminate
as of the date when physical possession of the Building or the Premises is taken by the condemning
authority.

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     22.2 If less than the whole or substantially the whole of the Building or the Premises is
thus taken or transferred to the condemning authority, Landlord (whether or not the Premises
are
affected thereby) may terminate this Lease by giving written notice thereof to Tenant, in
which
event this Lease shall terminate as of the date when physical possession of such portion of
the
Building or Premises is taken by the condemning authority.

     22.3 If this Lease is not so terminated upon any such taking or sale, the Base Rent
payable hereunder shall be diminished by a proportionate amount, and Landlord shall, to the
extent Landlord reasonably deems feasible, restore the Building and the Premises to
substantially
its former condition, but such work shall not exceed the scope of the work done by Landlord in
originally constructing the Building and installing Base Building Improvements in the
Premises,
nor shall Landlord in any event be required to spend for such work an amount in excess of the
amount received by Landlord as compensation for such damage. In the event such
condemnation occurs during the last twelve (12) months of the Lease Term, Tenant shall have
the right to terminate this Lease upon thirty (30) days notice in which event the Lease shall
terminate effective as of the date of taking and the parties shall have no further liability
under
this Lease except for such matters as accrued prior to such termination and such matters as
survive termination nor expiration of this Lease.

     22.4 All amounts awarded upon a taking of any part or all of the Building or the
Premises shall belong to Landlord, and Tenant shall not be entitled to, and expressly waives
all
claim to, any such compensation.

     22.5 Tenant shall be entitled to claim independently against condemning authority any
damages expressly referable to Tenant’s business as the same may be permitted by law provided
such claim shall not reduce any award payable to Landlord.

     23. Damages from Certain Causes. Landlord shall not be liable to Tenant for any
loss or damage to any property or person occasioned by theft, fire, act of God, environmental
hazards (unless and to the extent caused by Landlord or its agents or employees, and subject
to
the waiver of subrogation set forth in Section 18.5), public enemy, injunction, riot, strike,
insurrection, war, court order, requisition, or order of governmental body or authority or by
any
other cause beyond the control of Landlord (provided that financial inability shall not be
deemed
a cause beyond Landlord’s control). Nor shall Landlord be liable for any damage or
inconvenience which may arise through repair or alterations of any part of the Building or
Premises.

     24. Events of Default/Remedies.

     24.1 Events of Default by Tenant. The happening of any one or more of the following
listed events (“Events of Default”) shall constitute a breach of this Lease by Tenant:

     (a) The failure of Tenant to pay any rent or any other sums of money due hereunder
within five (5) business days after Tenant’s receipt of Landlord’s notice of such failure;

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     (b) Other than as set forth in Paragraph 24.1 (a), (c), (d), (e), (f), (g) or (h), the
failure of Tenant to comply with any term, provision or covenant of this Lease or any
other agreement between Landlord and Tenant, including the Work Letter all of which
terms, provisions, and covenants shall be deemed material, within thirty (30) days
after
Tenant’s receipt of Landlord’s notice of such failure, unless such failure cannot be
reasonably cured within said thirty (30) days period, in which event an Event of
Default
shall not be deemed to have occurred so long as Tenant commences to cure such failure
within ten (10) days after receipt of such notice and thereafter continuously (to the
extent
feasible) and diligently prosecutes such cure to completion;

     (c) The taking of the leasehold on execution or other process of law in any
action against Tenant;

     (d) Tenant or Guarantor becoming insolvent or unable to pay its debts as they
become due, or Tenant’s or Guarantor’s notification to Landlord that it anticipates
either
condition;

     (e) The filing of any bankruptcy or similar proceeding by or against Tenant or
Guarantor under any law including the filing of a petition by any creditor of Tenant or
Guarantor and such filing shall not be dismissed within ninety (90) days; and

     (f) The appointment of a receiver or trustee for Tenant’s leasehold interest in
the Premises or for all or a substantial part of the assets of Tenant
or Guarantor.

       24.2 Landlord’s Remedies for Tenant Default. Upon the occurrence of any Event or
Events of Default by Tenant, Landlord shall have the option, at any
one or more of the following remedies:

     (a) Landlord may terminate this Lease by giving to Tenant notice of
Landlord’s intention to do so, in which event the Term shall end, and all right, title
and
interest of Tenant hereunder shall expire, on the date stated in such notice;

     (b) Landlord may terminate the right of Tenant to possession of the Premises
without terminating this Lease by giving notice to Tenant that Tenant’s right of
possession shall end on the date stated in such notice, whereupon the right of Tenant
to
possession of the Premises or any part thereof shall cease on the date stated in such
notice
but Tenant’s monetary obligations under this Lease shall continue in full force and
effect;
and

     (c) Landlord may enforce the provisions of this Lease and may enforce and
protect the rights of Landlord hereunder by a suit or suits in equity or at law for the
specific performance of any covenant or agreement contained herein, or for the
enforcement of any other appropriate legal or equitable remedy, including injunctive
relief and recovery of all moneys due or to become due from Tenant under any of the
provisions of this Lease.

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     If Landlord exercises either of the remedies provided for in subparagraphs (a) and (b) above,
Landlord may, in accordance with applicable Florida law, re-enter and repossess the Premises and
remove all persons and property therefrom and Tenant hereby agrees to surrender possession of the
Premises and waives any claim arising by reason thereof or by reason of issuance of any distress
warrant or writ of sequestration and agrees to hold Landlord harmless from any such claim.
Notwithstanding any rule or provision of law to the contrary, in the event Landlord shall, for the
purpose of re-entering or regaining possession of the Premises, or for the purpose of excluding
Tenant therefrom, as authorized by law or the terms of this Lease, change the lock(s) to the
Premises, Landlord shall not be obligated to provide Tenant with the key(s) to the Premises unless
and until Tenant shall wholly and completely remedy any event of default occurring on the part of
Tenant hereunder. If Landlord elects to terminate this Lease, it may treat the Event of Default as
an entire breach of this Lease and Tenant shall immediately become liable to Landlord for damages
equal to the total of (i) the cost of recovering, reletting (including without limitation the cost
of lease commissions attributable to the unexpired portion of the Term of this Lease), and
remodeling the Premises, (ii) all unpaid Rent and other amounts earned or due through such
termination, (iii) the unamortized cost to Landlord, computed and determined in accordance with
generally accepted accounting principles, of any tenant improvements provided by Landlord at its
expense, (iv) the value of any other concessions or inducements granted to Tenant under or in
connection with this Lease, plus (v) the total Rent and other amounts to be paid by Tenant
hereunder for the remainder of the full Lease Term, less the fair rental value of the Premises for
the same period, with the resulting amount to be discounted to present value using a per annum
interest rate of 8%. If Landlord elects to terminate Tenant’s right to possession of the Premises
without terminating this Lease, Landlord may (but shall not be obligated to) rent the Premises or
any part thereof for the account of Tenant to any person or persons for such rent and for such
terms and conditions as Landlord deems appropriate, and Tenant shall be liable to Landlord for the
amount, if any, by which the Rent for the unexpired balance of the Term exceeds the net amount, if
any, received by Landlord less the costs of repossession, reletting, remodeling, and other
expenses incurred by Landlord. Such sum or sums shall be paid by Tenant in monthly installments on
the first day of each month of the Term. In no case shall Landlord be liable for failure to relet
the Premises or to collect the rent due under such reletting, and in no event shall Tenant be
entitled to any excess rents received by Landlord.

     All property removed from the Premises by Landlord pursuant to any provisions of this Lease or
of law shall be handled, removed or stored by Landlord at the cost, expense and risk of Tenant, and
Landlord shall in no event be responsible for the value, preservation or safekeeping thereof.
Tenant shall pay Landlord upon demand for all expenses incurred by Landlord in such removal and
storage. Tenant shall pay all costs, charges and expenses, including court costs and reasonable
attorneys’ fees incurred by Landlord in enforcing Tenant’s obligations under this Lease, in the
exercise by Landlord of any of its remedies in the event of a default, in any litigation,
negotiations or transactions in which Tenant causes Landlord, without Landlord’s fault, to become
involved or concerned, or in consideration of any request for approval of or consent to

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any action by Tenant which is prohibited by this Lease or which may be done only with
Landlord’s approval or consent, whether or not such approval or consent is given.

       24.3
Landlord’s Remedies are Cumulative. All of the remedies of Landlord in the
event of Tenant default shall be cumulative and in addition, Landlord may pursue any other
remedies permitted by law or in equity. Forbearance by Landlord to enforce one or more of the
remedies upon an Event of Default, shall not constitute a waiver of such default.

       24.4 Events of Landlord Default.

     (a) If Tenant asserts that Landlord has failed to meet its obligations under this
Lease, Tenant shall give written notice (“Notice of Default”), to Landlord specifying
the
alleged failure to perform, and Tenant shall send by certified mail, return receipt
requested, a copy of such Notice of Default to any mortgage holder, (provided that
Tenant has been previously advised of the address of the mortgage holder by assignment
of rents or otherwise).

     (b) If Landlord has not begun and pursued with reasonable diligence the cure
of any failure of Landlord to meet its obligations under this Lease within thirty (30)
days
of receipt of the Notice of Default, or such shorter period of time as is reasonably
required in the case of an emergency materially affecting Tenant, then Landlord shall
be
in default.

     (c) If Landlord shall have failed to pursue with reasonable diligence to cure
such default within the time set forth above, then the mortgagees shall have an
additional
thirty (30) days within which to cure such default, or if such default cannot be cured
within that time, then such additional time as may be necessary if within such
additional
thirty (30) days any mortgagee has commenced and is diligently pursuing the remedies
necessary to cure such default, including, but not limited to, commencement of
foreclosure proceedings if necessary to effect such a cure, in which event this Lease
shall
not be terminated while such remedies are being so diligently pursued,

     (d) In no event shall Tenant have the right to terminate or rescind this Lease
as a result of Landlord’s default as to any covenant or agreement contained in this
Lease
or as a result of the breach of any promise or inducement hereof, whether in this Lease
or
elsewhere. Tenant hereby waives such remedies of termination and recession and hereby
agrees that Tenant’s remedies for default hereunder and for breach of any promise or
inducement shall be limited to a suit for damages or an injunction, or both.

       24.5 Limited Tenant Self-Help. If Tenant believes that Landlord has failed to fulfill
its obligations under this Lease with respect to the maintenance or repair of the Building,
Tenant
may send written notice to Landlord specifically identifying the portion of the Building
requiring
the maintenance or repair and the maintenance or repair required. If Landlord fails to
commence
the necessary maintenance or repair within thirty (30) days after receipt of such notice, or
such
shorter period of time as is reasonably required in the case of an emergency materially
affecting
Tenant, Tenant may send a second written notice to Landlord stating Tenant’s intention to

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exercise self-help to effectuate the necessary maintenance or repair. If Landlord fails to
commence the necessary maintenance or repair within five (5) business days after receipt of such
second notice and if such failure gives rise to a material interference with Tenant’s business
operation or material damage to Tenant’s property, then Tenant may engage contractors to perform
the necessary repair and Landlord shall be liable to Tenant for the reasonable cost of such
repair. If Tenant has validly exercised its right of self-help pursuant to this Section 24.5, and
if Landlord fails to reimburse Tenant within thirty (30) days after submission by Tenant of
invoices evidencing the costs incurred by Tenant, Tenant shall have the right to offset such
amounts against Base Rent next coming due until Tenant has recouped such costs.

     24.6 THE PARTIES HERETO SHALL, AND THEY HEREBY DO, WAIVE TRIAL
BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY
EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS
WHATSOEVER ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS LEASE,
THE BUILDING, AND/OR CLAIM OF INJURY OR DAMAGE.

     24.7 The parties agree to cooperate and negotiate in good faith to resolve any disputes
under this Lease. All disputes other than those relating to the payment of Rent which cannot
be
resolved privately will be resolved by mediation and arbitration (if necessary) under the
Commercial Arbitration Rules of the Orlando, Florida, office (or nearest Florida office) of
the
American Arbitration Association (“AAA”) or any comparable organization agreed upon by the
parties (“Arbitration Entity”). Any disputes subject to mediation or arbitration will be
heard and
decided by a single independent arbitrator appointed by the Arbitration Entity who has
experience and qualifications appropriate to resolve the matter in dispute. The decision of
the arbitrator will be final and binding on both parties, subject to appeal in a U.S.
District Court or state court having jurisdiction only on the grounds specified in the
Federal Arbitration Act, 9 U.S.C. §1 et seq. If the parties cannot agree upon an Arbitration
Entity within ten (10) business days of written notice by either party invoking formal
dispute resolution, the arbitration shall be done by AAA.

     25. Peaceful Enjoyment.

     25.1 Tenant shall, and may peacefully, enjoy the Premises against all persons claiming
by, through or under Landlord, subject to the other terms and provisions of this Lease,
provided
that Tenant pays the rent and other sums herein recited to be paid by the Tenant and performs
all
of Tenant’s covenants and agreements in this Lease and Exhibits hereto.

     25.2 The foregoing covenant and any and all other covenants of Landlord shall be
binding upon Landlord and its successors, only with respect to breaches occurring during its
or
their respective period of ownership of Landlord’s interest hereunder, and is in lieu of any
implied covenants of title or possession. Landlord covenants that it is the fee simple owner
of
the Premises and that it has the right to execute, deliver, and perform its obligations
under, this
Lease.

     26. Intentionally Omitted.

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     27. Holding Over.

     27.1 If Tenant holds over without Landlord’s written consent after expiration or other
termination of this Lease, or if Tenant continues to occupy the Premises after termination of
Tenant’s right of possession pursuant to the provisions of Paragraph 24, Subparagraph 24.2
(c),
Tenant shall be deemed a tenant at sufferance and Tenant shall pay rental with respect to such
holdover at the rate of 150% of the Base Rent and Additional Rental which would have been
applicable had the term of this Lease continued through the period of such holding over by
Tenant, without proration for any partial month. Acceptance by Landlord of Base Rent after
such expiration or earlier termination shall not constitute a renewal of his Lease or permit
Tenant
to continue such holdover. The foregoing provisions of this paragraph 27.1 are in addition to
and
do not affect Landlord’s right of re-entry or any rights of Landlord hereunder or as otherwise
provided by law, including without limitation, Landlord’s right to recover any damages which
it
sustains as a result of such holdover. A termination or nonrenewal of this Lease is not
intended
to be and shall not be deemed to be a breach of the covenant of good faith and fair dealing.

     27.2 No possession by Tenant after the expiration of the term of this Lease shall be
construed to extend the term of this Lease unless Landlord has consented to such possession in
writing.

     28. Subordination to Mortgage.

     28.1 This Lease is and shall be subject to subordinate to a mortgage, whether presently
existing or hereafter arising upon the Premises, or upon the Building and to any renewals,
modifications, refinancing or extensions thereof, but Tenant agrees that any such mortgagee
shall
have the right at any time to subordinate such mortgage to this Lease on such terms and
subject
to such conditions as such mortgagee may deem appropriate in its sole
discretion.
Notwithstanding the foregoing, Tenant’s obligation to subordinate this Lease and its rights
hereunder to Landlord’s existing Mortgage is expressly conditioned upon receipt by Tenant of
the Subordination, Non-Disturbance and Attornment Agreement substantially in the form
attached as Exhibit E to this Lease (the “SNDA”) executed by Landlord’s lender. Tenant shall
execute and deliver the SNDA to Landlord concurrently with its execution and delivery of this
Lease. Landlord shall deliver to Tenant, within sixty (60) days after receipt of the
executed
SNDA from Tenant, a fully executed SNDA from Landlord’s current lender. Additionally,
Tenant’s agreement to subordinate this Lease to landlord’s future lenders is
expressly
conditioned upon any such lender entering into a non-disturbance agreement in commercially
reasonably form.

     28.2 Landlord is hereby irrevocably vested with full power and authority to
subordinate the Lease to any mortgage, now existing or hereafter placed upon the Premises or
the
Building, and Tenant agrees upon demand to execute such further instruments subordinating the
lease or attornment to the holder of any such first mortgage as Landlord may request.

     28.3 The terms of this Lease are subject to approval by the Landlord’s lender(s), and
such approval is a condition precedent to Landlord’s obligations hereunder. In addition, all
leases of portions of the Building will be subordinate to such lender’s mortgage.

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     28.4 If Tenant should fail to execute any subordination or other agreement required by
this Section 28 within ten (10) business days after request therefor, and such failure
continues for
an additional five (5) business days after a second written request therefor, then, for each
additional day after such five (5) business day period that Tenant has failed to execute and
deliver the requested document, Tenant shall pay $100.00 to Landlord, as Additional Rental
under this Lease, such sums being due without demand.

     28.5 Each party hereto agrees that, upon request of the other party (the “requesting
party”), it will, from time to time, execute and deliver to such persons as the requesting
party
shall request a statement in recordable form certifying that this Lease is unmodified and in
full
force and effect (or if there have been modifications, that the same is in full force and
effect as so
modified), stating the dates to which rent and other charges payable under this Lease have
been
paid, stating that the requesting party is not in default hereunder (or if the other party
alleges a
default stating the nature of such alleged default) and further stating such other matters as
the
requesting party or its mortgagee(s) shall reasonably require.

     28.6 Tenant shall, in the event of the sale or assignment of Landlord’s interest in the
Building of which the Premises form a part, or in the event of any proceedings brought from
the
foreclosure of, or in the event of exercise of the power of sale under any mortgage made by
Landlord covering the Premises, attorn to the purchaser and recognize the purchaser as
Landlord
under this Lease.

     29. Tenant’s Personal Property.

     29.1 All trade fixtures, furniture, equipment and other personally furnished or installed by
Tenant in the Premises, unless attached in such a manner as to become affixed to and part of the
real estate owned by Landlord, shall be and remain the property of Tenant and may be removed by
Tenant at any time during the Lease Term. Any of such property remaining on the Premises after the
expiration of such period shall be deemed abandoned by Tenant and, at Landlord’s option, shall
become the property of Landlord without payment therefor or shall be removed by Tenant at
Landlord’s request. Tenant agrees to repair any damage done to the Premises or pay the Landlord’s
reasonable cost of repairing any damage done to the Premises resulting from the removal of such
property, reasonable wear and tear excepted. Tenant shall have the right, upon expiration of the
Lease Term, to remove the Data Center and supplemental HVAC if Tenant paid the costs of acquiring
and installing such items (outside of the Allowance); otherwise, such items shall remain the
property of Landlord.

     30. Attorneys’ Fees. Tenant will pay, in addition to rents and other sums agreed to
be paid hereunder, all collection and court costs incurred by Landlord and Landlord’s
reasonable
attorneys’ fees and paralegals’ fees incurred for the collection of unpaid rents or the
successful
enforcement, defense or interpretation of Landlord’s rights under this Lease, whether such
fees
and costs be incurred out of court, at trial, on appeal, or in bankruptcy, arbitration or any
administrative proceedings. Landlord will pay all court costs incurred by Tenant and Tenant’s
reasonably attorneys’ fees and paralegals’ fees incurred in connection with the successful
enforcement, defense or interpretation of Tenant’s rights under the Lease, whether such fees
and

33

 

costs be incurred out of court, at trial, on appeal, or in bankruptcy, arbitration or any
administrative proceedings.

     31. No Implied Waiver.

     31.1 The failure of a party to insist at any time upon the strict performance of any
covenant or agreement or to exercise any option, right, power or remedy contained in this
Lease
shall not be construed as a waiver or a relinquishment thereof for the future. Any waiver by
a
party of any default must be in writing. The consent or approval of Landlord to or of any act
by
Tenant of a nature requiring consent or approval shall not be deemed to waive or render a
necessary consent to or approval of any subsequent similar act.

     31.2 No payment by Tenant or receipt by Landlord of a lesser amount than the monthly
installment of rent due under this Lease shall be deemed to be other than on account of the
earliest rent due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent be deemed on accord and satisfaction, and Landlord
may accept such check and payment without prejudice to Landlord’s right to recover the balance
of such rent or pursue any other remedy provided in this Lease.

     32. Personal Liability. The liability of Landlord to Tenant for any default by
Landlord under this Lease shall be limited to the interest of Landlord in the Building for the
recovery of any judgement from the Landlord, it being intended that Landlord shall not be
personally liable for any judgement or deficiency.

     33. Security
Deposit. No security deposit is required of the original named Tenant
under this Lease. Landlord reserves the right to require a security deposit of an assignee
of
Tenant’s interest under this Lease.

     34. Force Majeure. Whenever a period of time is herein prescribed for the taking of
any action by Landlord or Tenant, such party shall not be liable or responsible for, and there
shall be excluded from the computation of such period of time, any delays due to strikes,
riots,
acts of God, acts of terrorism, shortages of labor or materials, war, governmental controls in
connection with a national or other public emergency, governmental laws, regulations or
restrictions, financing, or any other cause whatsoever beyond the control of such party.
Notwithstanding the foregoing, this Section 34 shall not apply to, or excuse the performance
of,
any obligations of a party to pay sums owed or to execute documents, as required under the
terms of this Lease.

     35. Relationship of Parties. Nothing contained in this Lease shall be deemed or
construed by the parties hereto, nor by any third party, as creating the relationship of
principal
and agent or of partnership or of joint venture between the parties hereto, it being
understood and
agreed that neither the method of computation of rent, nor any other provision contained
herein,
nor any acts of the parties hereto, shall be deemed to create any relationship between the
parties
hereto other than the relationship of landlord and tenant.

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     36. Miscellaneous.

     36.1 Radon. Radon is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present health risks to persons who
are
exposed to it over time. Levels of radon that exceed federal and state guidelines have been
found
in Florida. Additional information regarding radon and radon testing may be obtained from your
public health unit.

     36.2 Severability. If any term or provision of this Lease, or the application thereof
to
any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of
this Lease or the application of such term or provisions to the persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected thereby, and
each
term and provision of this Lease shall be valid and enforced to the fullest extent permitted
by
law.

     36.3 Recordation. Tenant agrees not to record this Lease or any memorandum hereof
but Landlord may record this Lease or a memorandum thereof, at its sole election.

     36.4 Governing Law. This Lease and the rights and obligations of the parties hereto
are governed by the laws of the State of Florida.

     36.5 Time of Performance. Except as expressly otherwise herein provided, with
respect to all required acts of Landlord and Tenant, time is of the essence of this Lease.

     36.6 Transfers by Landlord. Landlord shall have the right to transfer and assign, in
whole or in part, all its rights and obligations hereunder and in the Building and the
Premises
referred to herein, and in such event and upon the transferee’s or assignee’s assumption of
the
obligations of “Landlord” under this Lease. Landlord shall be released from any further
obligations hereunder, and Tenant agrees to look solely to such successor in interest of
Landlord
for the performance of such obligations accruing after such transfer.

     36.7 Commissions. Landlord and Tenant acknowledge, represent and warrant to each
other that, except for Lincoln Property Company of Florida, Inc. (“Tenant’s Broker”), no
broker
or real estate agent brought about or was involved in the making of this Lease and that no
brokerage fee or commission is due to any other party as a result of the execution of this
Lease.
Landlord shall pay the brokerage commission owed Tenant’s Broker, pursuant to a separate
agreement between Landlord and Tenant’s Broker. Landlord and Tenant hereby indemnify and
agree to hold each other harmless against any loss, claim, expense or liability with respect
to any
commissions or brokerage fees claimed on account of the execution and/or renewal of this Lease
due to any action of the indemnifying party.

     36.8 Effect of Delivery of This Lease. Landlord has delivered a copy of this Lease to
Tenant for Tenant’s review only, and the delivery hereof does no constitute an offer to Tenant
or
an option to lease. This Lease shall not be effective until it is executed by both Landlord
and
Tenant and approved by Landlord’s lender(s).

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     36.9 Paragraph and Section Headings. The paragraph, subparagraph and section
headings are used for convenience of reference only and do not define, limit or extend the
scope
of intent of the paragraphs, subparagraphs and sections.

     36.10 Definitions. The definitions set forth in Section 1 are hereby made part of
this
Lease.

     36.11 Merger. It is understood that there are no oral agreements or representations
between the parties hereto affecting this Lease, and this Lease supersedes and cancels any and
all
previous negotiations, arrangements, brochures, agreements, drafts of leases or
representations
and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with
respect to the subject matter thereof, and none thereof shall be used to interpret or construe
this
Lease. There are no representations or warranties between the parties except expressly get
forth
in this Lease, and all reliance with respect to same is solely upon the representations and
agreements contained in this Lease.

     36.12 Successors and Assigns. The covenants and agreements herein contained shall
bind and inure to the benefit of Landlord its successor and assigns, and Tenant and its
permitted
successors and assigns.

     36.13
Survival. All obligations of Tenant hereunder not fully performed as of the
expiration or earlier termination of the terms of this Lease shall survive the expiration or
earlier
termination of the term hereof, including, without limitation, all payment obligations with
respect to Rent and Additional Rent. Tenant shall not for any reason withhold or reduce
Tenant’s required payments of Rent and other charges provided in this Lease, it being
expressly
understood and agreed by the parties that the payment of Rent and Additional Rent is a
covenant
by Tenant that is independent of the other covenants of the parties hereunder.

     36.14 Exhibits. The following exhibits are attached hereto and incorporated herein and
made a part of this Lease for all purposes:

	 	 	 
	Exhibit Number	 	Description
	Exhibit “A”

	 	Description of Real Property
	 
	 	 
	Exhibit “B”

	 	Premises Location in Building
	 
	 	 
	Exhibit “C”

	 	Work Letter
	 
	 	 
	Exhibit “D”

	 	Building Rules & Regulations
	 
	 	 
	Exhibit “E”

	 	Form of Subordination, Non-
Disturbance and Attornment
Agreement
	 
	 	 
	Exhibit “F”

	 	Site Plan

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     36.15
Notices.

     (a) Tenant shall pay the rent and shall furnish all notices to Landlord at the
following address (or at such other place as Landlord may hereafter designate in
writing):

300 South Orange Avenue

Suite 975

Orlando, FL 32801

     (b) Landlord shall furnish all notices to Tenant at the following address (or at
such other place as Tenant may hereafter designate in writing):

To the Premises

Attention: Lawrence Deering

                 Chairman and CEO

with a copy to:

Buchanan Ingersoll P.C.

301 Grant Street, 20th Floor

Pittsburgh, PA 15219-1410

Attention: Rosemary Corsetti, Esq.

     (c) Any notice provided for in this Lease must, unless otherwise expressly
provided herein, be in writing, and may, unless otherwise expressly provided, be given
or
be served by (i) depositing the same in the United States mail, postage prepaid and
certified and addressed to the party to be notified with return receipt requested, (ii)
sending the same via a nationally recognized overnight delivery service, or (iii) by
personal delivery, with evidence of receipt.

     (d) Notice given in the mail in the manner hereinabove indicated shall be
effective upon receipt, unless (in connection with such deposited mail) such mail is
unclaimed, in which event notice shall be effective five (5) days after the date of
mailing.

     36.16
Abatement Personal. If and to the extent that this Lease provides for the
abatement of any Rent or other charges due from Tenant under this Lease, any such abatement is
personal to the original named Tenant under this Lease and intended for its benefit only, and is
not transferable to any assignee of Tenant’s rights under this Lease. If Tenant’s rights are
assigned, then, as of the effective date of such assignment, any such abatements shall terminate
and be rendered of no force or effect and the Rent or other charges in question shall be payable at
the rate otherwise applicable for the period in question.

     37. Renewal
Option. Landlord hereby grants to Tenant the option to extend the Term on
the same terms, conditions and provisions as contained in the Lease, except as otherwise provided
herein, for one (1) period of five (5) years (the “Option Period”), subject to the terms and
conditions hereinafter set forth.

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     (a) Tenant’s option to extend shall be exercisable by written notice from
Tenant to Landlord given no earlier than twelve (12) months, and no later than nine (9)
months, prior to the expiration of the Lease Term, time being of the essence. If the
option is not so exercised, such option shall thereupon expire.

     (b) Base Rent per square foot of Net Rentable Area of the Premises payable
during the first (1st) year of the Option Period shall be equal to the Base
Rent per square
foot of Net Rentable Area of the Premises in effect during the last month of the initial
Lease Term, and shall increase annually each year during the Option Period by three
percent (3%) of the prior year’s Base Rent.

     (c) Tenant may only exercise its option to extend, and an exercise thereof
shall only be effective, if at the time of Tenant’s exercise and on the Option Period
commencement date, the Lease is in full force and effect and no event or circumstance
exists which, with the giving of notice or the passage of time, or both, could
constitute a
default by Tenant under the Lease and inasmuch as such option is intended only for the
benefit of the original Tenant named in this Amendment, the entire Premises are then
occupied by the original Tenant named in this Amendment. No assignee shall be entitled
to exercise such options other than an assignee to whom Tenant is permitted to assign
without Landlord’s consent. No sublessee shall be entitled to exercise such options.

     (d) Upon the valid exercise by Tenant of its option to extend, Landlord and Tenant shall enter into a written amendment to the Lease confirming the terms,
conditions and provisions applicable to the Option Period as determined in accordance
with the provisions of this paragraph, with such revisions to the Base Rent provisions
of
the Lease as may be necessary to conform those provisions to the rental rate applicable
to
the Option Period. No new options to extend shall be deemed to be created by a valid
exercise of the extension option and no other provisions inapplicable to the Option
Period
shall be construed to govern the Option Period.

     38. Right
of First Refusal — Lease. Landlord hereby grants to Tenant the right of
refusal to lease space in the Building which becomes “available” during the Lease Term (the
“Refusal Space”) on the terms and conditions hereinafter set forth. As used herein, space shall
be deemed “available” when it is not subject to the rights of any other tenant which is a tenant
under a lease which is in effect as of the date of this Lease (whether such rights are current,
to be exercised in the future or the result of future negotiation with a tenant to extend the
term of its lease).

     (a) Upon receipt by Landlord of a third party offer to lease any Refusal Space, which
offer is acceptable to Landlord, Landlord shall notify Tenant of the economic and other
material terms of such offer (the “Offer Notice”).

     (a) Tenant’s right to lease the Refusal Space from Landlord shall be exercisable by
written notice from Tenant to Landlord of Tenant’s election to exercise said right given
not later than ten (10) business days after Tenant’s receipt of the Offer Notice, time
being of the essence. Tenant may not elect to lease less than the entire area

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of Refusal Space described in the Offer Notice. If Tenant does not timely exercise its option to
lease the entire Refusal Space described in the subject Offer Notice, Tenant’s right to lease such
Refusal Space shall thereupon expire and Landlord shall have the right to lease such Refusal Space
to a third party, free of any rights of Tenant.

     (b) Tenant may only exercise its right to lease the Refusal Space, and an
exercise thereof shall only be effective, if at the time of Tenant’s exercise of said right
and on the Refusal Space commencement date, this Lease is in full force and effect and
no event or circumstance exists which, with the giving of notice or the passage of time, or
both, could constitute a default by Tenant under the Lease and inasmuch as such option is
intended only for the benefit of the original Tenant named in this Amendment, the entire
Premises is occupied by the original Tenant named in this Amendment. No assignee
shall be entitled to exercise such option other than an assignee to whom Tenant is
permitted to assign without Landlord’s consent. No sublessee shall be entitled to exercise
said option.

     (c) If Tenant has validly exercised its right to lease the Refusal Space, then,
effective as of the Refusal Space commencement date, such Refusal Space shall be
included in the Premises, subject to all of the terms, conditions and provisions of this
Lease, except as follows:

     (i) The Net Rentable Area of the Premises shall be increased by the rentable area of
the Refusal Space, and Tenant’s Proportionate Share shall be increased in a corresponding
manner;

     (ii) The term of the demise covering such Refusal Space be the term set forth in the
Offer Notice;

     (iii) Base Rent for such Refusal Space shall be at the rental rate designated in the
applicable Offer Notice;

     (iv) Landlord shall perform and pay the cost of tenant improvements in the Refusal
Space to the same extent as described in the Offer Notice.

Landlord shall prepare a written amendment to this Lease confirming the terms, conditions and
provisions applicable to such Refusal Space as determined in accordance herewith. If Tenant fails
to execute and deliver the Amendment to Landlord within ten (10) business days after receipt
thereof, Tenant’s exercise of its right to lease the Refusal Space shall be rendered null and void
and Landlord shall be free to lease such Refusal Space to the third party.

     (d) If Landlord should be unable on the Refusal Space commencement date to
deliver possession of all or any portion of the Refusal Space to be delivered on such
Refusal Space commencement date despite Landlord’s exercise of good faith and
reasonable efforts to do so, Landlord shall not be subject to any liability for failure to
deliver possession. Such failure to deliver possession shall not affect either the validity

39

 

of the Lease or the obligations of either Landlord or Tenant hereunder or be construed to
extend the expiration of the Term either as to such Refusal Space or the balance of the
Premises; provided, however, that under such circumstances, rent shall not commence as to
such Refusal Space until Landlord is able to deliver possession.

     39. Right of First Offer-Purchase. Should Landlord elect to sell the Building,
Landlord hereby grants to Tenant the right of first offer to purchase the Building on the terms
and conditions hereinafter set forth. Tenant’s right to purchase under this Section 39 shall
expire on the second (2nd) anniversary of the Commencement Date and, from that date on,
Landlord shall have the right to sell the Building free of any rights of Tenant.

     (a) Prior to offering the Building for sale to the public or any other third party,
Landlord shall give Tenant written notice (an “Offer Notice”) of the material economic
terms upon which Landlord is prepared to sell the Building, including, without
limitation,
the purchase price, earnest money deposit, and timing for due diligence investigation
and
closing.

     (b) Tenant’s right to purchase the Building from Landlord shall be exercisable
by written notice from Tenant to Landlord of Tenant’s election to exercise said right
given not later than ten (10) business days after the Offer Notice is given, time being
of
the essence. If Tenant does not timely exercise its option to purchase the Building,
Tenant’s right to purchase the Building shall thereupon expire and Landlord shall have
the right to sell the Building to a third party, free of any rights of
Tenant.
Notwithstanding the foregoing, if Landlord subsequently offers to sell the Building to
a
third party on terms which have a cumulative net economic effect which is more than ten
percent (10%) more favorable to such third party than the terms described in the Offer
Notice, Tenant’s right to purchase shall be reinstated and Landlord shall re-offer to
sell
the Building to Tenant, in accordance with subparagraph (a) above, upon such more
favorable terms.

     (c) Tenant may only exercise its right to purchase the Building, and an
exercise thereof shall only be effective, if at the time of Tenant’s exercise of said
right,
the Lease is in full force and effect and Tenant is not in default under this Lease.
In
addition to the condition set forth in the first sentence of this subparagraph (c), if
Tenant
is in default under the Lease within thirty (30) days prior to the sale closing date,
it shall
be a condition to Landlord’s obligation to close that Tenant cure any defaults arising
under the Lease as of the closing date.

     (d) If Tenant has validly exercised its right to purchase the Building, Landlord
and Tenant shall negotiate and execute a sale and purchase agreement which incorporates
the terms set forth in the Offer Notice. If Landlord and Tenant are unable to execute
such
an agreement within thirty (30) days after Tenant’s exercise of its purchase option,
despite good faith efforts to do so, then Tenant’s exercise of its purchase option
shall
thereupon expire and Landlord shall be free to sell the Building to any third party,
free of
any rights of Tenant.

40

 

     40. Satellite Antenna. Tenant shall be allowed to install and maintain, at Tenant’s
sole cost and expense, a satellite antenna (“Satellite Antenna”) at a location specified by
Landlord on the roof (“Roof”) of the Building, subject to the following terms and conditions.
Tenant shall be responsible for obtaining all required governmental permits and approvals
necessary for installation of the Satellite Antenna. Tenant will submit to Landlord all plans
and
specifications for installation of the Satellite Antenna for Landlord’s approval, which
approval
shall not be unreasonably withheld or delayed and shall be given to Tenant, in writing, within
(30) days of Landlord’s receipt of such plans and specifications. Tenant agrees that the
Satellite
Antenna shall be installed on the Roof and that the installation of the Satellite Antenna
shall in
no way cause any punctures in the surface of the Roof or otherwise breach Landlord’s roof
warranty. Tenant shall be solely responsible for maintaining the Satellite Antenna. Upon
termination of this Lease, Tenant shall be responsible for removing the Satellite Antenna from
the Roof and leaving the Roof in substantially the same condition it was in prior to Tenant’s
installation of the Satellite Antenna, reasonable wear and tear and damage by fire or other
casualty accepted.

     41. Moving Allowance. As a material inducement for Tenant entering into this
Lease, Landlord has agreed to pay Tenant a moving allowance in connection with Tenant’s
expenses associated with moving its offices to the Premises in the amount of Thirty Thousand
Dollars ($30,000.00) (the “Moving Allowance”) which shall be paid in full to Tenant within
thirty (30) days following Tenant’s opening for business in the Premises.

41

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple original
counterparts as of the day and year first above written.

     Executed in the presence of:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	LANDLORD:	 	 	 	 
	/s/ Lauren Keating
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Signature of Witness	 	 	 	MAITLAND CONCOURSE PHASE II, LLLP.,
	 	 	 	 	a Florida limited partnership
	Lauren Keating
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name	 	 	 	By:	 	LINCOLN PROPERTY
COMPANY NO. 

2363, LTD., a Texas limited partnership, a general partner
	 	 	 	 	 	 	 
	/s/ Kelly R. Bray
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Signature of Witness
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	LINCOLN BATTAGLIA, INC., a
	 

	 	 	 	 	 	 	 	Texas corporation, general partner
	Kelly R. Bray
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 

	 	By:
	 	/s/ Ellis L. Shamburger, III
	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	ELLIS L. SHAMBURGER, III
	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	VICE PRESIDENT
	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	TENANT:	 	 	 	 
	/s/ Rosemary L. Consetti
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Signature of Witness	 	 	 	TANDEM HEALTH CARE, INC., a
	 	 	 	 	Pennsylvania corporation
	 
	 	 	 	 	 	 	 	 
	Rosemary L. Consetti	 	 	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lawrence R. Deering
	/s/ Karen M. Mohr
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Signature of Witness

	 	 	 	 	 	Title:
	 	Chairman and CEO
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Karen M. Mohr
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 

42Exhibit 10.56

 

Exhibit
10.56

MASTER LEASE AGREEMENT

BETWEEN

HEALTH CARE REIT, INC.

HCRI PENNSYLVANIA PROPERTIES, INC.

AND

TANDEM HEALTH CARE, INC.

January 1, 2002

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION	 	PAGE	 
	ARTICLE 1: LEASED PROPERTY, TERM AND DEFINITIONS
	 	 	1	 
	1.1 Leased Property
	 	 	1	 
	1.2 Indivisible Lease
	 	 	1	 
	1.3 Term
	 	 	2	 
	1.4 Definitions
	 	 	2	 
	1.5 Landlord As Agent
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 2: RENT
	 	 	10	 
	2.1 Base Rent
	 	 	10	 
	2.2 Increase of Lease Rate and Base Rent
	 	 	11	 
	2.3 Additional Rent
	 	 	11	 
	2.4 Place of Payment of Rent
	 	 	11	 
	2.5 Net Lease
	 	 	11	 
	2.6 No Termination, Abatement, Etc
	 	 	11	 
	2.7 Computational Method
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3: IMPOSITIONS AND UTILITIES
	 	 	12	 
	3.1 Payment of Impositions
	 	 	12	 
	3.2 Definition of Impositions
	 	 	13	 
	3.3 Escrow of Impositions
	 	 	13	 
	3.4 Utilities
	 	 	13	 
	3.5 Discontinuance of Utilities
	 	 	14	 
	3.6 Business Expenses
	 	 	14	 
	3.7 Permitted Contests
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 4: INSURANCE
	 	 	15	 
	4.1 Property Insurance
	 	 	15	 
	4.2 Liability Insurance
	 	 	16	 
	4.3 Builder’s Risk Insurance
	 	 	16	 
	4.4 Insurance Requirements
	 	 	16	 
	4.5 Replacement Value
	 	 	17	 
	4.6 Blanket Policy
	 	 	17	 
	4.7 No Separate Insurance
	 	 	17	 
	4.8 Waiver of Subrogation
	 	 	18	 
	4.9 Mortgages
	 	 	18	 
	4.10 Escrows
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 5: INDEMNITY
	 	 	18	 
	5.1 Tenant’s Indemnification
	 	 	18	 
	5.1.1 Notice of Claim
	 	 	19	 
	5.1.2 Survival of Covenants
	 	 	19	 
	5.1.3 Reimbursement of Expenses
	 	 	19	 

 

 

	 	 	 	 	 
	SECTION	 	PAGE	 
	5.2 Environmental Indemnity; Audits
	 	 	19	 
	5.3 Limitation of Landlord’s Liability
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 6: USE AND ACCEPTANCE OF PREMISES
	 	 	20	 
	6.1 Use of Leased Property
	 	 	20	 
	6.2 Acceptance of Leased Property
	 	 	20	 
	6.3 Conditions of Use and Occupancy
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 7: MAINTENANCE AND MECHANICS’ LIENS
	 	 	21	 
	7.1 Maintenance
	 	 	21	 
	7.2 Required Alterations
	 	 	22	 
	7.3 Mechanic’s Liens
	 	 	22	 
	7.4 Replacements of Fixtures and Landlord’s Personal Property
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 8: DEFAULTS AND REMEDIES
	 	 	23	 
	8.1 Events of Default
	 	 	23	 
	8.2 Remedies
	 	 	25	 
	8.3 Right of Set-Off
	 	 	28	 
	8.4 Performance of Tenant’s Covenants
	 	 	28	 
	8.5 Late Payment Charge
	 	 	28	 
	8.6 Interest
	 	 	28	 
	8.7 Litigation; Attorneys’ Fees
	 	 	28	 
	8.8 Escrows and Application of Payments
	 	 	29	 
	8.9 Remedies Cumulative
	 	 	29	 
	8.10 Intentionally Omitted
	 	 	29	 
	8.11 Obligations Under the Bankruptcy Code
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 9: DAMAGE AND DESTRUCTION
	 	 	30	 
	9.1 Notice of Casualty
	 	 	30	 
	9.2 Substantial Destruction
	 	 	30	 
	9.3 Partial Destruction
	 	 	31	 
	9.4 Restoration
	 	 	31	 
	9.5 Insufficient Proceeds
	 	 	32	 
	9.6 Not Trust Funds
	 	 	32	 
	9.7 Landlord’s Inspection
	 	 	32	 
	9.8 Landlord’s Costs
	 	 	33	 
	9.9 No Rent Abatement
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 10: CONDEMNATION
	 	 	33	 
	10.1 Total Taking
	 	 	33	 
	10.2 Partial Taking
	 	 	34	 
	10.3 Condemnation Proceeds Not Trust Funds
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 11: TENANT’S PROPERTY
	 	 	34	 
	11.1 Tenant’s Property
	 	 	34	 
	11.2 Requirements for Tenant’s Property
	 	 	34	 

(ii)

 

 

	 	 	 	 	 
	SECTION	 	PAGE	 
	ARTICLE 12: RENEWAL OPTIONS
	 	 	36	 
	12.1 Renewal Options
	 	 	36	 
	12.2 Effect of Renewal
	 	 	36	 
	12.3 Effect of Non-Renewal or Expiration of Lease
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 13: OPTION TO PURCHASE
	 	 	37	 
	13.1 Option to Purchase
	 	 	37	 
	13.2 Option Price
	 	 	37	 
	13.3 Fair Market Value
	 	 	38	 
	13.4 Closing
	 	 	39	 
	13.5 Failure to Close Option
	 	 	39	 
	13.6 Failure to Exercise Option to Purchase and Renewal Option
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 14: NEGATIVE COVENANTS
	 	 	40	 
	14.1 No Debt
	 	 	40	 
	14.2 No Liens
	 	 	40	 
	14.3 No Guaranties
	 	 	40	 
	14.4 No Transfer
	 	 	40	 
	14.5 No Dissolution
	 	 	40	 
	14.6 No Change in Management or Operation
	 	 	40	 
	14.7 No Investments
	 	 	41	 
	14.8 Contracts
	 	 	41	 
	14.9 Subordination of Payments to Affiliates
	 	 	41	 
	14.10 Change of Location or Name
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 15: AFFIRMATIVE COVENANTS
	 	 	41	 
	15.1 Perform Obligations
	 	 	41	 
	15.2 Proceedings to Enjoin or Prevent Construction
	 	 	41	 
	15.3 Documents and Information
	 	 	42	 
	15.3.1 Furnish Documents
	 	 	42	 
	15.3.2 Furnish Information
	 	 	42	 
	15.3.3 Further Assurances and Information
	 	 	42	 
	15.3.4 Material Communications
	 	 	43	 
	15.3.5 Requirements for Financial Statements
	 	 	43	 
	15.4 Compliance With Laws
	 	 	43	 
	15.5 Broker’s Commission
	 	 	43	 
	15.6 Existence and Change in Ownership
	 	 	43	 
	15.7 Financial Covenants
	 	 	44	 
	15.7.1 Definitions
	 	 	44	 
	15.7.2 Coverage Ratio
	 	 	45	 
	15.7.3 Net Worth
	 	 	45	 
	15.7.4 Current Ratio
	 	 	45	 
	15.8 Facility Licensure and Certification
	 	 	45	 
	15.9 Transfer of License and Facility Operations
	 	 	45	 
	15.9.1 Licensure
	 	 	45	 
	15.9.2 Facility Operations
	 	 	46	 
	15.10 Bed Operating Rights
	 	 	46	 

(iii)

 

 

	 	 	 	 	 
	SECTION	 	PAGE	 
	15.11 Power of Attorney
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 16: ALTERATIONS, CAPITAL IMPROVEMENTS, AND SIGNS
	 	 	47	 
	16.1 Prohibition on Alterations and Improvements
	 	 	47	 
	16.2 Approval of Alterations
	 	 	47	 
	16.3 Permitted Alterations
	 	 	47	 
	16.4 Requirements for Permitted Alterations
	 	 	47	 
	16.5 Ownership and Removal of Permitted Alterations
	 	 	48	 
	16.6 Minimum Qualified Capital Expenditures
	 	 	48	 
	16.7 Signs
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 17: [RESERVED]
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 18: ASSIGNMENT AND SALE OF LEASED PROPERTY
	 	 	49	 
	18.1 Prohibition on Assignment and Subletting
	 	 	49	 
	18.2 Requests for Landlord’s Consent to Assignment, Sublease or
Management Agreement
	 	 	49	 
	18.3 Agreements with Residents
	 	 	50	 
	18.4 Sale of Leased Property
	 	 	50	 
	18.5 Assignment by Landlord
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 19: HOLDOVER AND SURRENDER
	 	 	51	 
	19.1 Holding Over
	 	 	51	 
	19.2 Surrender
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 20: LETTER OF CREDIT
	 	 	51	 
	20.1 Terms of Letter of Credit
	 	 	51	 
	20.2 Replacement Letter of Credit
	 	 	51	 
	20.3 Draws
	 	 	52	 
	20.4 Partial Draws
	 	 	53	 
	20.5 Substitute Letter of Credit
	 	 	53	 
	20.6 Retention of Letter of Credit
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 21: QUIET ENJOYMENT, SUBORDINATION, ATTORNMENT AND ESTOPPEL CERTIFICATES
	 	 	53	 
	21.1 Quiet Enjoyment
	 	 	53	 
	21.2 Subordination
	 	 	53	 
	21.3 Attornment
	 	 	54	 
	21.4 Estoppel Certificates
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 22: REPRESENTATIONS AND WARRANTIES
	 	 	55	 
	22.1 Organization and Good Standing
	 	 	55	 
	22.2 Power and Authority
	 	 	55	 
	22.3 Enforceability
	 	 	55	 
	22.4 Government Authorizations
	 	 	55	 
	22.5 Financial Statements
	 	 	56	 
	22.6 Condition of Facility
	 	 	56	 

 (iv)

 

 

	 	 	 	 	 
	SECTION	 	PAGE	 
	22.7 Compliance with Laws
	 	 	56	 
	22.8 No Litigation
	 	 	56	 
	22.9 Consents
	 	 	57	 
	22.10 No Violation
	 	 	57	 
	22.11 Reports and Statements
	 	 	57	 
	22.12 ERISA
	 	 	57	 
	22.13 Chief Executive Office
	 	 	57	 
	22.14 Other Name or Entities
	 	 	58	 
	22.15 Parties in Possession
	 	 	58	 
	22.16 Access
	 	 	58	 
	22.17 Utilities
	 	 	58	 
	22.18 Condemnation and Assessments
	 	 	58	 
	22.19 Zoning
	 	 	58	 
	22.20 Pro Forma Statement
	 	 	58	 
	22.21 Environmental Matters
	 	 	59	 
	22.22 Leases and Contracts
	 	 	59	 
	22.23 No Default
	 	 	59	 
	22.24 Tax Status
	 	 	59	 
	 
	 	 	 	 
	ARTICLE 23: FUTURE PROJECTS
	 	 	60	 
	23.1 Project Submissions
	 	 	60	 
	 
	 	 	 	 
	ARTICLE 24: SECURITY INTEREST
	 	 	60	 
	24.1 Collateral
	 	 	60	 
	24.2 Additional Documents
	 	 	61	 
	24.3 Notice of Sale
	 	 	61	 
	24.4 Subordination of Receivables
	 	 	61	 
	24.5 Recharacterization
	 	 	61	 
	 
	 	 	 	 
	ARTICLE 25: MISCELLANEOUS
	 	 	61	 
	25.1 Notices
	 	 	61	 
	25.2 Advertisement of Leased Property
	 	 	62	 
	25.3 Entire Agreement
	 	 	62	 
	25.4 Severability
	 	 	62	 
	25.5 Captions and Headings
	 	 	62	 
	25.6 Governing Law
	 	 	62	 
	25.7 Memorandum of Lease
	 	 	62	 
	25.8 Waiver
	 	 	62	 
	25.9 Binding Effect
	 	 	63	 
	25.10 No Offer
	 	 	63	 
	25.11 Modification
	 	 	63	 
	25.12 Landlord’s Modification
	 	 	63	 
	25.13 No Merger
	 	 	63	 
	25.14 Laches
	 	 	63	 
	25.15 Limitation on Tenant’s Recourse
	 	 	64	 
	25.16 Construction of Lease
	 	 	64	 
	25.17 Counterparts
	 	 	64	 

 (v)

 

 

	 	 	 	 	 
	SECTION	 	PAGE	 
	25.18 Lease Guaranty
	 	 	64	 
	25.19 Custody of Escrow Funds
	 	 	64	 
	25.20 Landlord’s Status as a REIT
	 	 	64	 
	25.21 Exhibits
	 	 	64	 
	25.22 WAIVER OF JURY TRIAL
	 	 	64	 
	25.23 CONSENT TO JURISDICTION
	 	 	65	 
	25.24 Attorney’s Fees and Expenses
	 	 	65	 
	25.25 Survival
	 	 	66	 
	25.26 Time
	 	 	66	 
	25.27 Subtenant
	 	 	66	 
	25.28 Radon Gas
	 	 	66	 
	25.29 Warrants
	 	 	66	 

	 	 	 
	EXHIBIT A:

	 	LEGAL DESCRIPTIONS
	 
	 	 
	EXHIBIT B:

	 	PERMITTED EXCEPTIONS
	 
	 	 
	EXHIBIT C:

	 	FACILITY INFORMATION
	 
	 	 
	EXHIBIT D:

	 	LANDLORD’S PERSONAL PROPERTY
	 
	 	 
	EXHIBIT E:

	 	DOCUMENTS TO BE DELIVERED
	 
	 	 
	EXHIBIT F:

	 	TENANT’S CERTIFICATE AND FACILITY FINANCIAL REPORTS
	 
	 	 
	EXHIBIT G:

	 	GOVERNMENT AUTHORIZATIONS TO BE OBTAINED; ZONING PERMITS
	 
	 	 
	EXHIBIT H:

	 	PENDING LITIGATION
	 
	 	 
	EXHIBIT I:

	 	LIST OF LEASES AND CONTRACTS

(vi)

 

 

MASTER LEASE AGREEMENT

     This Master Lease Agreement (“Lease”) is made effective as of January 1, 2002 (the “Effective
Date”) between Health Care REIT, Inc., a corporation organized under the laws of the State of
Delaware (“HCRI” and a “Landlord” as further defined in §1.4 below), having its principal office
located at One SeaGate, Suite 1500, P.O. Box 1475, Toledo, Ohio 43603-1475, HCRI Pennsylvania
Properties, Inc., a corporation organized under the laws of the Commonwealth of Pennsylvania
(“HCRI-PA” and a “Landlord” as further defined in §1.4 below), having its principal office located
at One SeaGate, Suite 1500, P.O. Box 1475, Toledo, Ohio 43603-1475, and Tandem Health Care, Inc., a
corporation organized under the laws of the Commonwealth of Pennsylvania (“Tenant”), having its
chief executive office located at Cherrington Corporate Center, 200 Corporate Center Drive, Suite
360, Moon Township, Pennsylvania 15108.

RECITALS

     A. Landlord desires to lease the Leased Property to Tenant and Tenant desires to lease the
Leased Property from Landlord upon the terms set forth in this Lease.

     NOW, THEREFORE, Landlord and Tenant agree as follows:

ARTICLE 1: LEASED PROPERTY, TERM AND DEFINITIONS

     1.1 Leased Property. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord the Leased Property, subject, however, to the Permitted Exceptions and subject to the
terms and conditions of this Lease.

     1.2 Indivisible Lease. This Lease constitutes one indivisible lease of the entire
Leased Property. The Leased Property constitutes one economic unit and the Base Rent and all other
provisions have been negotiated and agreed to based on a lease of all of the Leased Property as a
single, composite, inseparable transaction and would have been materially different had separate
leases or a divisible lease been intended. Except as expressly provided herein for specific,
isolated purposes (and then only to the extent expressly otherwise stated), all provisions of this
Lease shall apply equally and uniformly to all the Leased Property as one unit and any Event of
Default under this Lease is an Event of Default as to the entire Leased Property. The parties
intend that the provisions of this Lease shall at all times be construed, interpreted and applied
so as to carry out their mutual objective to create a single indivisible lease of all the Leased
Property and, in particular but without limitation, that for purposes of any assumption, rejection
or assignment of this Lease under the Bankruptcy Code, this is one indivisible and non-severable
lease and executory contract dealing with one legal and economic unit which must be assumed,
rejected or assigned as a whole with respect to all (and only all) the Leased Property covered
hereby. The parties agree that the existence of more than one Landlord under this Lease does not
affect the indivisible, non-severable nature of this Lease. The parties may amend this Lease from
time to time to include one or more additional Facility Properties as part of the Leased Property
and such future addition to the Leased Property shall not in any way change the

 

 

indivisible and non-severable nature of this Lease and all of the foregoing provisions shall continue to apply in full force.

     1.3 Term. The initial term (“Initial Term”) of this Lease commences on the Effective
Date and expires at 12:00 Midnight Eastern Time on April 1, 2011 (the “Expiration Date”); provided,
however, that [i] Tenant has one or more options to renew the Lease pursuant to Article 12, and
[ii] that any addition to the Leased Property pursuant to amendment of this Lease shall extend the
Initial Term so that the Initial Term shall expire on the 13th anniversary of the
Amended Commencement Date as set forth in such amendment.

     1.4 Definitions. Except as otherwise expressly provided, [i] the terms defined in
this Section have the meanings assigned to them in this Section and include the plural as well as
the singular; [ii] all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles as of the time applicable; and
[iii] the words “herein”, “hereof”, and “hereunder” and similar words refer to this Lease as a
whole and not to any particular section.

     “ADA” means the federal statute entitled Americans with Disabilities Act, 42 U.S.C. §12101,
et seq.

     “Affiliate” means any person, corporation, partnership, limited liability company, trust, or
other legal entity that, directly or indirectly, controls, or is controlled by, or is under common
control with Tenant or Guarantor. “Control” (and the correlative meanings of the terms “controlled
by” and “under common control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such entity. “Affiliate” includes,
without limitation, each Guarantor.

     “Affiliate Facility” means each facility leased by Landlord or any Landlord Affiliate to any
Affiliate, whether now or hereafter existing.

     “Affiliate Lease” means each lease now or hereafter made between Landlord or any Landlord
Affiliate and any Affiliate, as amended, modified, extended or renewed from time to time.

     “Affiliate Tenant” means each Affiliate that is a tenant under an Affiliate Lease.

     “Allocated Lease Amount” means the portion of the Lease Amount allocated to a specific
Facility as set forth on the attached Exhibit C, including any Lease Advance Amount designated by
Landlord as allocated to such specific Facility.

     “Amended Commencement Date” means the Commencement Date as amended pursuant to the most recent
amendment of this Lease in effect at such time.

     “Annual Company Budget” means Company’s projection of its financial statement for the next
fiscal year (or the 12-month rolling forward period, if applicable), which shall include the
balance sheet, statement of income, statement of cash flows, statement of shareholders’ equity and
statement of capital expenditures for the applicable period.

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     “Annual Facility Budget” means Tenant’s projection of the Facility Financial Statement for the
next fiscal year (or the 12-month rolling forward period, if applicable).

     “Annual Financial Statements” means [i] for Tenant and Subtenant, an audited balance sheet,
statement of income, and statement of cash flows for the most recent fiscal year on an individual
facility and consolidated basis; [ii] for each Facility, an audited Facility Financial Statement
for the most recent fiscal year; [iii] for Guarantor, if Guarantor is or includes a corporation,
partnership or limited liability company, an audited balance sheet and statement of income for the
most recent fiscal year; and [iv] for Guarantor, if Guarantor is or includes an individual, a
current unaudited personal financial statement.

     “Bankruptcy Code” means the United States Bankruptcy Code set forth in 11 U.S.C. §101 et.
seq., as amended from time to time.

     “Base Rent” has the meaning set forth in §2.1, as increased from time to time pursuant to
§2.2.

     “Business Day” means any day other than a Saturday, Sunday, or national holiday.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended from time to time.

     “Closing” means the closing of the lease of the Leased Property to Tenant.

     “Collateral” has the meaning set forth in §24.1.

     “Commencement Date” means the Effective Date if such date is the first day of a month, and if
it is not, the first day of the first month following the Effective Date.

     “Commitment” means the Commitment Letter for the Lease dated August 25, 1997.

     “Company” means Tandem Health Care, Inc., a corporation organized under the laws of the
Commonwealth of Pennsylvania.

     “CPI” means the United States Department of Labor, Bureau of Labor Statistics Revised Consumer
Price Index for All Urban Consumers (1998-2000=100), U.S. City Average, All Items, or, if that
index is not available at the time in question, the index designated by such Department as the
successor to such index, and if there is no index so designated, an index for an area in the United
States that most closely corresponds to the entire United States, published by such Department, or
if none, by any other instrumentality of the United States.

     “Effective Date” means the date of this Lease.

     “Environmental Laws” means all federal, state, and local laws, ordinances and policies the
purpose of which is to protect human health and the environment, as amended from time to time,
including, but not limited to, [i] CERCLA; [ii] the Resource Conservation and

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Recovery Act; [iii] the Hazardous Materials Transportation Act; [iv] the Clean Air Act; [v] Clean
Water Act; [vi] the Toxic Substances Control Act; [vii] the Occupational Safety and Health Act;
[viii] the Safe Drinking Water Act; and [ix] analogous state laws and regulations.

     “Event of Default” has the meaning set forth in §8.1.

     “Expiration Date” has the meaning set forth in §1.3.

     “Extended Term” has the meaning set forth in §12.3(a).

     “Facility” means each facility located on a portion of the Land, including the Facility
Property associated with such Facility. References in this Lease to “the Facility” shall mean each
Facility individually unless expressly stated otherwise.

     “Facility Cash Flow” has the meaning set forth in §15.7.1.

     “Facility Coverage Ratio” has the meaning set forth in §15.7.1.

     “Facility Financial Statement” means a financial statement for each Facility which shall
include the balance sheet, statement of income, statement of cash flows, statement of shareholders’
equity, occupancy census data (including payor mix), statement of capital expenditures and a
comparison of the actual financial data versus the Annual Facility Budget for the applicable
period.

     “Facility Name” means the name under which a Facility has done business during the Term. The
Facility Name in use by each Facility on the Effective Date is set forth on the attached Exhibit C.

     “Facility Property” means the portion of the Land on which a Facility is located, the legal
description of which is set forth beneath the applicable Facility Name on Exhibit A, the
Improvements on such portion of the Land, the Related Rights with respect to such portion of the
Land, and Landlord’s Personal Property with respect to such Facility.

     “Facility Uses” means the uses relating to the operation of a Facility as a facility of the
type and operating the number of beds and units set forth on Exhibit C with respect to such
Facility.

     “Fair Market Value” has the meaning set forth in §13.3.

     “Financial Statements” means [i] the annual, quarterly and year to date financial statements
of Tenant and Guarantor; and [ii] all operating statements for each Facility, that were submitted
to Landlord prior to the Effective Date.

     “Fixtures” means all permanently affixed equipment, machinery, fixtures and other items of
real and/or personal property (excluding Landlord’s Personal Property), including all components
thereof, now and hereafter located in, on or used in connection with, and permanently affixed to or
incorporated into the Improvements, including, without limitation, all furnaces, boilers, heaters,
electrical equipment, heating, plumbing, lighting, ventilating,

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refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and
air-conditioning systems and apparatus, sprinkler systems and fire and theft protection equipment,
built-in oxygen and vacuum systems, towers and other devices for the transmission of radio,
television and other signals, all of which, to the greatest extent permitted by law, are hereby
deemed by the parties hereto to constitute real estate, together with all replacements,
modifications, alterations and additions thereto.

     “Government Authorizations” means all permits, licenses, approvals, consents, and
authorizations required to comply with all Legal Requirements, including, but not limited to, [i]
zoning permits, variances, exceptions, special use permits, conditional use permits, and consents;
[ii] the permits, licenses, provider agreements and approvals required for licensure and operation
of each Facility in accordance with its respective Facility Uses and certified as a provider under
the federal Medicare and state Medicaid programs; [iii] environmental, ecological, coastal,
wetlands, air, and water permits, licenses, and consents; [iv] curb cut, subdivision, land use, and
planning permits, licenses, approvals and consents; [v] building, sign, fire, health, and safety
permits, licenses, approvals, and consents; and [vi] architectural reviews, approvals, and consents
required under restrictive covenants.

     “Guarantor” means each Subtenant, individually and collectively.

     “Guaranty” means the Unconditional and Continuing Lease Guaranty entered into by Guarantor to
guarantee payment and performance of the Secured Obligations and any amendments thereto or
substitutions or replacements therefor.

     “Hazardous Materials” means any substance [i] the presence of which poses a hazard to the
health or safety of persons on or about the Land, including, but not limited to, asbestos
containing materials; [ii] which requires removal or remediation under any Environmental Law,
including, without limitation, any substance which is toxic, explosive, flammable, radioactive, or
otherwise hazardous; or [iii] which is regulated under or classified under any Environmental Law as
hazardous or toxic, including, but not limited to, any substance within the meaning of “hazardous
substance”, “hazardous material”, “hazardous waste”, “toxic substance”, “regulated substance”,
“solid waste”, or “pollutant” as defined in any Environmental Law.

     “HCRI” means Health Care REIT, Inc., a corporation organized under the laws of the State of
Delaware.

     “HCRI-PA” means HCRI Pennsylvania Properties, Inc., a corporation organized under the laws of
the Commonwealth of Pennsylvania.

     “HIPDB” means the Healthcare Integrity and Protection Data Bank maintained by the Department
of Health and Human Services.

     “Impositions” has the meaning set forth in §3.2.

     “Improvements” means all buildings, structures, Fixtures and other improvements of every kind
on the Land, including, but not limited to, alleys, sidewalks, utility pipes, conduits

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and lines (on-site and off-site), parking areas and roadways appurtenant to such buildings and
structures, now or hereafter situated upon the Land.

     “Increaser Rate” means 20.25 basis points per year for the Initial Term and 20.25 basis points
per year for each Renewal Term.

     “Initial Lease Advance” means $47,831,425.00.

     “Initial Term” has the meaning set forth in §1.3.

     “Issuer” means a financial institution satisfactory to Landlord issuing the Letter of Credit
and such Issuer’s successors and assigns. Any “Issuer” shall have a Lace Financial Service Rating
of “C+” or higher at all times throughout the Term.

     “Land” means the real property described in Exhibit A attached hereto.

     “Landlord” means HCRI and HCRI-PA, individually and collectively.

     “Landlord Affiliate” means any person, corporation, partnership, limited liability company,
trust, or other legal entity that, directly or indirectly, controls, or is controlled by, or is
under common control with Landlord. “Control” (and the correlative meanings of the terms
“controlled by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such entity.
“Landlord Affiliate” includes, without limitation, HCRI Indiana Properties, LLC, HCRI Texas
Properties, Ltd., HCRI Nevada Properties, Inc., HCRI Properties, Inc., HCRI North Carolina
Properties, LLC and HCRI Louisiana Properties, L.P.

     “Landlord’s Personal Property” means all Personal Property owned by Landlord on the Effective
Date, including, without limitation, all personal property listed on the attached Exhibit D,
together with any and all replacements thereof, and all Personal Property that pursuant to the
terms of this Lease becomes the property of Landlord during the Term.

     “LC Proceeds” has the meaning set forth in §20.3.

     “Lease” means this Master Lease Agreement, as amended from time to time.

     “Lease Advance” means any advance of funds by Landlord to Tenant pursuant to the terms of this
Lease.

     “Lease Advance Amount” means the amount of any Lease Advance. The first Lease Advance Amount
is the Lease Amount on the Effective Date.

     “Lease Advance Date” means the date on which Landlord makes a Lease Advance.

     “Lease Amount” is an aggregate concept and means the sum of the Lease Advance Amounts
outstanding at the applicable time. As of the Effective Date, the Lease Amount is $47,831,425.00.

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     “Lease Documents” means this Lease and all documents executed by Landlord and Tenant relating
to this Lease or the Facility.

     “Lease Payments” means the sum of the Base Rent payments (as increased from time to time) for
the applicable period.

     “Lease Rate” means the annual rate used to determine Base Rent for each Lease Advance. The
Lease Rate is 10.45% using the 365/360 method. The Lease Rate includes any accrued Increaser Rate.
On the Renewal Date, the Lease Rate will be the Renewal Rate.

     “Lease Year” means each consecutive period of 365 or 366 days throughout the Term. The first
Lease Year commences on the Commencement Date and expires on the day before the first anniversary
of the Commencement Date.

     “Leased Property” means all of the Land, Improvements, Related Rights and Landlord’s Personal
Property.

     “Legal Requirements” means all laws, regulations, rules, orders, writs, injunctions, decrees,
certificates, requirements, agreements, conditions of participation and standards of any federal,
state, county, municipal or other governmental entity, administrative agency, insurance
underwriting board, architectural control board, private third-party payor, accreditation
organization, or any restrictive covenants applicable to the development, construction, condition
and operation of the Facility by Tenant, including, but not limited to, [i] zoning, building, fire,
health, safety, sign, and subdivision regulations and codes; [ii] certificate of need laws (if
applicable); [iii] licensure to operate as each Facility in accordance with its respective Facility
Uses; [iv] Medicare and Medicaid certification requirements (if applicable); [v] the ADA; [vi] any
Environmental Laws; and [vii] requirements, conditions and standards for participation in
third-party payor insurance programs.

     “Letter of Credit” means an irrevocable and transferable Letter of Credit in an amount equal
to 2.5% of the Lease Amount, issued by Issuer in favor of Landlord as security for the Lease and in
form acceptable to Landlord, and any amendments thereto or replacements or substitutions therefor.

     “Material Obligation” means [i] any indebtedness secured by a security interest in or a lien,
deed of trust or mortgage on any of the Leased Property (or any part thereof, including any
Personal Property) and any agreement relating thereto; [ii] any obligation or agreement that is
material to the construction or operation of the Facility or that is material to Tenant’s business
or financial condition; [iii] any indebtedness or lease of Tenant or Subtenant that has an
outstanding principal balance or obligation of at least $50,000.00 and any agreement relating
thereto; [iv] any indebtedness or lease of Guarantor or of any other party that has been guaranteed
by Guarantor that has an outstanding principal balance or obligation of at least $250,000.00; [v]
any obligation to or agreement with the Issuer relating to the Letter of Credit; and [vi] any
sublease of the Leased Property.

     “Net Worth” has the meaning set forth in §15.7.1.

     “Option Price” has the meaning set forth in §13.2.

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     “Option to Purchase” has the meaning set forth in §13.1.

     “Organizational Documents” means [i] for a corporation, its Articles of Incorporation
certified by the Secretary of State of the state of organization, as amended to date, and its
Bylaws certified by such entity, as amended to date; [ii] for a partnership, its Partnership
Agreement certified by such entity, as amended to date, and the Partnership Certificate, certified
by the appropriate authority, as amended to date; and [iii] for a limited liability company, its
Articles of Organization certified by the Secretary of State of the state of organization, as
amended to date, and its Operating Agreement certified by such entity, as amended to date.

     “Overdue Rate” has the meaning set forth in §8.6.

     “PA-Facility” means each Facility located in the Commonwealth of Pennsylvania.

     “Periodic Financial Statements” means [i] for Tenant and Subtenant, an unaudited balance sheet
and statement of income for the most recent quarter; [ii] for the Facility, an unaudited Facility
Financial Statement for the most recent month; [iii] for Guarantor, if Guarantor is or includes a
corporation, partnership, or limited liability company, an unaudited balance sheet and statement of
income of Guarantor for the most recent quarter; and [iv] for Guarantor, if Guarantor is or
includes an individual, a current unaudited personal financial statement.

     “Permitted Exceptions” means all easements, liens, encumbrances, restrictions, agreements and
other title matters existing as of the Effective Date, including, without limitation, the
exceptions to title set forth on Exhibit B attached hereto, and any sublease of any portion of the
Leased Property made in complete accordance with Article 18.

     “Permitted Liens” means [i] liens granted to Landlord; [ii] liens customarily incurred by
Tenant or Subtenant in the ordinary course of business for items not delinquent, including
mechanic’s liens and deposits and charges under worker’s compensation laws; [iii] liens for taxes
and assessments not yet due and payable; [iv] any lien, charge, or encumbrance which is being
contested in good faith pursuant to this Lease; [v] the Permitted Exceptions; and [vi] purchase
money financing and capitalized equipment leases for the acquisition of personal property provided,
however, that Landlord obtains a nondisturbance agreement from the purchase money lender or
equipment lessor in form and substance as may be satisfactory to Landlord if the original cost of
the equipment exceeds $50,000.00.

     “Personal Property” means all machinery, equipment, furniture, furnishings, movable walls or
partitions, computers (and all associated software), trade fixtures and other personal property
(but excluding consumable inventory and supplies owned by Tenant) used in connection with the
Leased Property, together with all replacements and alterations thereof and additions thereto,
except items, if any, included within the definition of Fixtures or Improvements.

     “Portfolio Cash Flow” has the meaning set forth in §15.7.1.

     “Portfolio Coverage Ratio” has the meaning set forth in §15.7.1.

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     “Pro Forma Statement” means a financial forecast for the Facility for the next five-year
period prepared in accordance with the standards for forecasts established by the American
Institute of Certified Public Accountants.

     “Purchase Notice” has the meaning set forth in §13.1.

     “Qualified Capital Expenditures” means the expenditures capitalized on the books of Tenant or
Subtenant for any of the following: replacement of furniture, fixtures and equipment, including
refrigerators, ranges, major appliances, bathroom fixtures, doors (exterior and interior), central
air conditioning and heating systems (including cooling towers, water chilling units, furnaces,
boilers and fuel storage tanks) and major replacement of siding; major roof replacements, including
major replacements of gutters, downspouts, eaves and soffits; major repairs and replacements of
plumbing and sanitary systems; overhaul of elevator systems; major repaving, resurfacing and
sealcoating of sidewalks, parking lots and driveways; repainting of entire building exterior; but
excluding major alterations, renovations, additions and normal maintenance and repairs.

     “Rate Determination Date” means the date on which the value for the Rate Index is established
for computing any Lease Rate. For any Lease Advances made during the Initial Term, the Rate
Determination Date is the Lease Advance Date. For any Renewal Date, the Rate Determination Date is
the last Business Day of the current Term.

     “Rate Index” means the yield quoted in the Wall Street Journal on the applicable Rate
Determination Date for the most actively traded United States Treasury Notes having the nearest
equivalent maturity date to the Expiration Date or the expiration date for the current Renewal
Term, as applicable. For any Lease Advance other than the first Lease Advance, the yield shall be
computed based upon the remainder of the Initial Term or Renewal Term, as applicable.

     “Rate Spread” means the rate spread from time to time used to calculate the Lease Rate
applicable to any Lease Advance. The Rate Spread is 390 basis points for the Initial Term.

     “Receivables” means [i] all of Tenant’s or Subtenant’s rights to receive payment for providing
resident care and services as set forth in any accounts, contract rights, and instruments, and [ii]
those documents, chattel paper, inventory proceeds, provider agreements, participation agreements,
ledger sheets, files, records, computer programs, tapes, and agreements relating to Tenant’s or
Subtenant’s rights to receive payment for providing resident care services.

     “Related Rights” means all easements, rights (including bed operating rights) and
appurtenances relating to the Land and the Improvements.

     “Renewal Date” means the first day of each Renewal Term.

     “Renewal Option” has the meaning set forth in §12.1.

     “Renewal Rate” means the Lease Rate established for the Lease Year ending on the date
immediately prior to the Renewal Date plus the Increaser Rate.

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     “Renewal Term” has the meaning set forth in §12.1.

     “Rent” has the meaning set forth in §2.3.

     “Replacement Operator” has the meaning set forth in §15.9.1.

     “Secured Obligations” means all payment and performance obligations of Tenant, Subtenant and
Guarantor to Landlord or any Landlord Affiliate, including, but not limited to, all obligations
under this Lease, any loans extended to Tenant, Subtenant or Guarantor by Landlord or any Landlord
Affiliate and all documents executed by Tenant, Subtenant or Guarantor in connection with this
Lease, any loan or any other obligation.

     “State” means the State in which a respective Facility is located.

     “States” means, collectively, the States in which the Leased Property is located.

     “Subtenant” means Tandem Health Care of Cheswick, Inc.; Tandem Health Care of Fort Myers,
Inc.; Tandem Health Care of Lakeland, Inc.; Tandem Health Care of New Port Richey, Inc.; Tandem
Health Care of Vero Beach, Inc.; and Tandem Health Care of West Palm Beach, Inc., individually and
collectively. Each Subtenant will be the licensed operator of its respective Facility as shown on
Exhibit C. References in this Lease to “Subtenant” shall mean each Subtenant individually and
shall relate to such Subtenant’s respective Facility unless expressly stated otherwise.

     “Tenant” has the meaning set forth in the introductory paragraph of this Lease.

     “Term” means the Initial Term and each Renewal Term.

     1.5 Landlord As Agent. With respect to each PA-Facility, HCRI-PA appoints HCRI as the
agent and lawful attorney-in-fact of HCRI-PA to act for HCRI-PA for all purposes and actions of
Landlord under this Lease. All notices, consents, waivers and all other documents and instruments
executed by HCRI pursuant to this Lease from time to time and all other actions of HCRI as Landlord
under this Lease shall be binding upon HCRI-PA. All Rent payable under this Lease shall be paid to
HCRI.

ARTICLE 2: RENT

     2.1 Base Rent. Tenant shall pay Landlord base rent (“Base Rent”) in advance in
consecutive monthly installments payable on the first day of each month during the Term commencing
on the Commencement Date. If the Effective Date is not the first day of a month, Tenant shall pay
Landlord Base Rent on the Effective Date for the partial month, i.e., for the period commencing on
the Effective Date and ending on the day before the Commencement Date. The Base Rent for the
Initial Term will be computed monthly and will be equal to 1/12th of the sum of the products of
each Lease Advance times the Lease Rate for each Lease Advance. The Base Rent for each Renewal
Term will be computed in accordance with §12.2.

     2.2 Increase of Lease Rate and Base Rent. Commencing on the first day of April, 2002
and on each April 1st thereafter throughout the Term (including any Renewal Term

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and Extended Term), the Lease Rate will increase by the applicable Increaser Rate. On each date that
the Lease Rate is increased, the Base Rent will be increased accordingly and will be equal to
1/12th of the sum of the products of each Lease Advance times the Lease Rate (including the
applicable Increaser Rate) for each Lease Advance.

     2.3 Additional Rent. In addition to Base Rent, Tenant shall pay all other amounts,
liabilities, obligations and Impositions which Tenant assumes or agrees to pay under this Lease and
any fine, penalty, interest, charge and cost which may be added for nonpayment or late payment of
such items (collectively the “Additional Rent”). The Base Rent and Additional Rent are hereinafter
referred to as “Rent”. Landlord shall have all legal, equitable and contractual rights, powers and
remedies provided either in this Lease or by statute or otherwise in the case of nonpayment of the
Rent.

     2.4 Place of Payment of Rent. Tenant shall make all payments of Rent at Landlord’s
address set forth in the first paragraph of this Lease or at such other place as Landlord may
designate from time to time.

     2.5 Net Lease. This Lease shall be deemed and construed to be an “absolute net
lease”, and Tenant shall pay all Rent and other charges and expenses in connection with the Leased
Property throughout the Term, without abatement, deduction, recoupment or set-off.

     2.6 No Termination, Abatement, Etc. Except as otherwise specifically provided in this
Lease, Tenant shall remain bound by this Lease in accordance with its terms. Tenant shall not,
without the consent of Landlord, modify, surrender or terminate the Lease, nor seek nor be entitled
to any abatement, deduction, deferment or reduction of Rent, or set-off or recoupment against the
Rent. Except as expressly provided in this Lease, the obligations of Landlord and Tenant shall not
be affected by reason of [i] any damage to, or destruction of, the Leased Property or any part
thereof from whatever cause (other than Landlord’s negligence or willful misconduct) or any Taking
(as hereinafter defined) of the Leased Property or any part thereof; [ii] the lawful or unlawful
prohibition of, or restriction upon, Tenant’s use of the Leased Property, or any part thereof, the
interference with such use by any person, corporation, partnership or other entity (other than
Landlord or Landlord Affiliate), or by reason of eviction by paramount title; [iii] any claim which
Tenant has or might have against Landlord or by reason of any default or breach of any warranty by
Landlord under this Lease or any other agreement between Landlord and Tenant, or to which Landlord
and Tenant are parties; [iv] any bankruptcy, insolvency, reorganization, composition, readjustment,
liquidation, dissolution, winding up or other proceeding affecting Landlord or any assignee or
transferee of Landlord; or [v] 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. Except
as otherwise specifically provided in this Lease, Tenant hereby specifically waives all rights,
arising from any occurrence whatsoever, which may now or hereafter be conferred upon it by law [a]
to modify, surrender or terminate this Lease or quit or surrender the Leased Property or any
portion thereof; or [b] entitling Tenant to any abatement, reduction, suspension or deferment
of the Rent or other sums payable by Tenant hereunder. 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

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be terminated pursuant to the express provisions of this Lease or by termination of this Lease other than by reason of an Event of Default.

     2.7 Computational Method. Landlord and Tenant acknowledge that all rates under this
Lease will be computed based on the actual number of days elapsed over a 360-day year (365/360
method).

ARTICLE 3: IMPOSITIONS AND UTILITIES

     3.1 Payment of Impositions. Tenant shall pay, as Additional Rent, all Impositions
that may be levied or become a lien on the Leased Property or any part thereof at any time (whether
prior to or during the Term), without regard to prior ownership of said Leased Property, before any
fine, penalty, interest, or cost is incurred; provided, however, Tenant may contest any Imposition
in accordance with §3.7. Tenant shall deliver to Landlord [i] not more than 10 days after the due
date of each Imposition, copies of the invoice for such Imposition and the check delivered for
payment thereof; and [ii] not more than 30 days after the due date of each Imposition, a copy of
the official receipt evidencing such payment or other proof of payment satisfactory to Landlord.
Tenant’s obligation to pay such Impositions shall be deemed absolutely fixed upon the date such
Impositions become a lien upon the Leased Property or any part thereof. Tenant, at its expense,
shall prepare and file all tax returns and reports in respect of any Imposition as may be required
by governmental authorities. Tenant shall be entitled to any refund due from any taxing authority
if no Event of Default shall have occurred hereunder and be continuing and if Tenant shall have
paid all Impositions due and payable as of the date of the refund. Landlord shall be entitled to
any refund from any taxing authority if an Event of Default has occurred and is continuing. Any
refunds retained by Landlord due to an Event of Default shall be applied as provided in §8.8.
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 Leased Property as may be necessary to
prepare any required returns and reports. In the event governmental authorities classify any
property covered by this Lease as personal property, Tenant shall file all personal property tax
returns in such jurisdictions where it may legally so file. Landlord, to the extent it possesses
the same, and Tenant, to the extent it possesses the same, will 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, Tenant will 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. 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 fully cooperate
with Tenant in such protest, appeal, or other action. Tenant shall reimburse Landlord for all
personal property taxes paid by Landlord within 30 days after receipt of billings accompanied by
copies of a bill therefor and payments thereof which identify the personal property with respect to
which such payments are made. Impositions imposed in respect to the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Landlord
and Tenant, whether or not such Imposition is imposed before or after such termination, and
Tenant’s obligation to pay its prorated share thereof shall survive such termination.

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     3.2 Definition of Impositions. “Impositions” means, collectively, [i] taxes
(including, without limitation, all capital stock and franchise taxes of Landlord imposed by the
State or any governmental entity in the State due to this lease transaction or Landlord’s ownership
of the Leased Property and the income arising therefrom, or due to Landlord being considered as
doing business in the State because of Landlord’s ownership of the Leased Property or lease thereof
to Tenant), all real estate and personal property ad valorem, sales and use, business or
occupation, single business, gross receipts, transaction privilege, rent or similar taxes; [ii]
assessments (including, without limitation, all assessments for public improvements or benefits,
whether or not commenced or completed prior to the date hereof and whether or not to be completed
with the Term); [iii] ground rents, water, sewer or other rents and charges, excises, tax levies,
and fees (including, without limitation, license, permit, inspection, authorization and similar
fees); [iv] all taxes imposed on Tenant’s operations of the Leased Property, including, without
limitation, employee withholding taxes, income taxes and intangible taxes; [v] all taxes imposed by
the State or any governmental entity in the State with respect to the conveyance of the Leased
Property by Landlord to Tenant or Tenant’s designee, including, without limitation, conveyance
taxes and capital gains taxes; and [vi] all other governmental charges, in each case whether
general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in
respect of the Leased Property or any part thereof and/or the Rent (including all interest and
penalties thereon due to any failure in payment by Tenant), which at any time prior to, during or
in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien upon [a]
Landlord or Landlord’s interest in the Leased Property or any part thereof; [b] the Leased Property
or any part thereof or any rent therefrom or any estate, right, title or interest therein; or [c]
any occupancy, operation, use or possession of, or sales from, or activity conducted on, or in
connection with the Leased Property or the leasing or use of the Leased Property or any part
thereof. Tenant shall not, however, be required to pay any tax based on net income imposed on
Landlord by any governmental entity other than the capital stock and franchise taxes described in
clause [i] above.

     3.3 Escrow of Impositions. If an Event of Default occurs and while it remains
uncured, Tenant shall, at Landlord’s election, deposit with Landlord on the first day of each month
a sum equal to 1/12th of the Impositions assessed against the Leased Property for the preceding tax
year, which sums shall be used by Landlord toward payment of such Impositions. Tenant, on demand,
shall pay to Landlord any additional funds necessary to pay and discharge the obligations of Tenant
pursuant to the provisions of this Section. The receipt by Landlord of the payment of such
Impositions by and from Tenant shall only be as an accommodation to Tenant, the mortgagees, and the
taxing authorities, and shall not be construed as rent or income to Landlord, Landlord serving, if
at all, only as a conduit for delivery purposes.

     3.4 Utilities. Tenant shall pay, as Additional Rent, all taxes, assessments, charges,
deposits, and bills for utilities, including, without limitation, charges for water, gas, oil,
sanitary and storm sewer, electricity, telephone service, and trash collection, which may be charged against the occupant of the Improvements during the Term. If an
Event of Default occurs and while it remains uncured, Tenant shall, upon written notice and at
Landlord’s election, deposit with Landlord on the first day of each month a sum equal to 1/12th of
the amount of the annual utility expenses for the preceding Lease Year, which sums shall be used by
Landlord to pay such utilities. Tenant shall, on demand, pay to Landlord any additional amount
needed to pay such utilities. Landlord’s receipt of such payments shall only be an

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accommodation to Tenant and the utility companies and shall not constitute rent or income to Landlord. Tenant
shall at all times maintain that amount of heat necessary to ensure against the freezing of water
lines. Tenant hereby agrees to indemnify and hold Landlord harmless from and against any liability
or damages to the utility systems and the Leased Property that may result from Tenant’s failure to
maintain sufficient heat in the Improvements.

     3.5 Discontinuance of Utilities. Landlord will not be liable for damages to person or
property or for injury to, or interruption of, business for any discontinuance of utilities nor
will such discontinuance in any way be construed as an eviction of Tenant or cause an abatement of
rent or operate to release Tenant from any of Tenant’s obligations under this Lease.

     3.6 Business Expenses. Tenant shall promptly pay all expenses and costs incurred in
connection with the operation of the Facility on the Leased Property, including, without
limitation, employee benefits, employee vacation and sick pay, consulting fees, and expenses for
inventory and supplies.

     3.7 Permitted Contests. Tenant, on its own or on Landlord’s behalf (or in Landlord’s
name), but at Tenant’s expense, may contest, by appropriate legal proceedings conducted in good
faith and with due diligence, the amount or validity or application, in whole or in part, of any
Imposition or any Legal Requirement or insurance requirement or any lien, attachment, levy,
encumbrance, charge or claim provided that [i] in the case of an unpaid Imposition, lien,
attachment, levy, encumbrance, charge or claim, the commencement and continuation of such
proceedings shall suspend the collection thereof from Landlord and from the Leased Property; [ii]
neither the Leased Property nor any Rent therefrom nor any part thereof or interest therein would
be in any immediate danger of being sold, forfeited, attached or lost; [iii] in the case of a Legal
Requirement, Landlord would not be in any immediate danger of civil or criminal liability for
failure to comply therewith pending the outcome of such proceedings; [iv] in the event that any
such contest shall involve a sum of money or potential loss in excess of $50,000.00, Tenant shall
deliver to Landlord and its counsel an opinion of Tenant’s counsel to the effect set forth in
clauses [i], [ii] and [iii], to the extent applicable; [v] in the case of a Legal Requirement
and/or an Imposition, lien, encumbrance or charge, Tenant shall give such reasonable security as
may be demanded by Landlord to insure ultimate payment of the same and to prevent any sale or
forfeiture of the affected Leased Property or the Rent by reason of such nonpayment or
noncompliance; provided, however, the provisions of this Section shall not be construed to permit
Tenant to contest the payment of Rent (except as to contests concerning the method of computation
or the basis of levy of any Imposition or the basis for the assertion of any other claim) or any
other sums payable by Tenant to Landlord hereunder; [vi] in the case of an insurance requirement,
the coverage required by Article 4 shall be maintained; and [vii] if such contest be finally
resolved against Landlord or Tenant, Tenant shall, as Additional Rent due hereunder, 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. Landlord, at Tenant’s expense, shall execute and deliver to
Tenant such authorizations and other documents as may be reasonably required in any such contest,
and, if reasonably requested by Tenant or if Landlord so desires, Landlord shall join as a party
therein. Tenant hereby agrees to indemnify 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.

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ARTICLE 4: INSURANCE

     4.1 Property Insurance. At Tenant’s expense, Tenant shall maintain in full force and
effect a property insurance policy or policies insuring the Leased Property against the following:

          (a) Loss or damage commonly covered by a “Special Form” policy insuring against physical loss
or damage to the Improvements and Personal Property, including, but not limited to, risk of loss
from fire and other hazards, collapse, transit coverage, vandalism, malicious mischief, theft,
earthquake (if the Leased Property is in earthquake zone 1 or 2) and sinkholes (if usually
recommended in the area of the Leased Property). The policy shall be in the amount of the full
replacement value (as defined in §4.5) of the Improvements and Personal Property and shall contain
a deductible amount acceptable to Landlord. Landlord shall be named as an additional insured. The
policy shall include a stipulated value endorsement or agreed amount endorsement and endorsements
for contingent liability for operations of building laws, demolition costs, and increased cost of
construction.

          (b) If applicable, loss or damage by explosion of steam boilers, pressure vessels, or similar
apparatus, now or hereafter installed on the Leased Property, in commercially reasonable amounts
acceptable to Landlord.

          (c) Consequential loss of rents and income coverage insuring against all “Special Form” risk
of physical loss or damage with limits and deductible amounts acceptable to Landlord covering risk
of loss during the first nine months of reconstruction, and containing an endorsement for extended
period of indemnity of at least six months, and shall be written with a stipulated amount of
coverage if available at a reasonable premium.

          (d) If the Leased Property is located, in whole or in part, in a federally designated 100-year
flood plain area, flood insurance for the Improvements in an amount equal to the lesser of [i] the
full replacement value of the Improvements; or [ii] the maximum amount of insurance available for
the Improvements under all federal and private flood insurance programs.

          (e) Loss or damage caused by the breakage of plate glass in commercially reasonable amounts
acceptable to Landlord.

          (f) Loss or damage commonly covered by blanket crime insurance, including employee dishonesty,
loss of money orders or paper currency, depositor’s forgery, and loss of property of patients
accepted by Tenant for safekeeping, in commercially reasonable amounts acceptable to Landlord.

     4.2 Liability Insurance. At Tenant’s expense, Tenant shall maintain liability
insurance against the following:

          (a) Claims for personal injury or property damage commonly covered by comprehensive general
liability insurance with endorsements for incidental malpractice, contractual, personal injury,
owner’s protective liability, voluntary medical payments, products and completed operations, broad
form property damage, and extended bodily injury, with

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commercially reasonable amounts for bodily injury, property damage, and voluntary medical payments acceptable to Landlord, but with a combined
single limit of not less than $5,000,000.00 per occurrence.

          (b) Claims for personal injury and property damage commonly covered by comprehensive
automobile liability insurance, covering all owned and non-owned automobiles, with commercially
reasonable amounts for bodily injury, property damage, and for automobile medical payments
acceptable to Landlord, but with a combined single limit of not less than $5,000,000.00 per
occurrence.

          (c) Claims for personal injury commonly covered by medical malpractice insurance in
commercially reasonable amounts acceptable to Landlord.

          (d) Claims commonly covered by worker’s compensation insurance for all persons employed by
Tenant on the Leased Property. Such worker’s compensation insurance shall be in accordance with
the requirements of all applicable local, state, and federal law.

     4.3 Builder’s Risk Insurance. In connection with any construction, Tenant shall
maintain in full force and effect a builder’s completed value risk policy (“Builder’s Risk Policy”)
of insurance in a nonreporting form insuring against all “Special Form” risk of physical loss or
damage to the Improvements, including, but not limited to, risk of loss from fire and other
hazards, collapse, transit coverage, vandalism, malicious mischief, theft, earthquake (if Leased
Property is in earthquake zone 1 or 2) and sinkholes (if usually recommended in the area of the
Leased Property). The Builder’s Risk Policy shall include endorsements providing coverage for
building materials and supplies and temporary premises. The Builder’s Risk Policy shall be in the
amount of the full replacement value of the Improvements and shall contain a deductible amount
acceptable to Landlord. Landlord shall be named as an additional insured. The Builder’s Risk
Policy shall include an endorsement permitting initial occupancy.

     4.4 Insurance Requirements. The following provisions shall apply to all insurance
coverages required hereunder:

          (a) The form and substance of all policies shall be subject to the approval of Landlord, which
approval will not be unreasonably withheld.

          (b) The carriers of all policies shall have a Best’s Rating of “A” or better and a Best’s
Financial Category of X or higher and shall be authorized to do insurance business in the State.

          (c) Tenant shall be the “named insured” and Landlord shall be an “additional insured” on each
liability policy. On all property and casualty policies, Landlord and Tenant shall be joint
payees.

          (d) Tenant shall deliver to Landlord certificates or policies showing the required coverages
and endorsements. The policies of insurance shall provide that the policy may not be canceled or
not renewed, and no material change or reduction in coverage may be made, without at least 30 days’
prior written notice to Landlord.

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          (e) The policies shall contain a severability of interest and/or cross-liability endorsement,
provide that the acts or omissions of Tenant or Landlord will not invalidate the coverage of the
other party, and provide that Landlord shall not be responsible for payment of premiums.

          (f) All loss adjustment shall require the written consent of Landlord and Tenant, as their
interests may appear.

          (g) At least 30 days prior to the expiration of each insurance policy, Tenant shall deliver to
Landlord a certificate showing renewal of such policy and payment of the annual premium therefor
and a current Certificate of Compliance (in the form delivered at the time of Closing) completed
and signed by Tenant’s insurance agent.

     4.5 Replacement Value. The term “full replacement value” means the actual replacement
cost thereof from time to time, including increased cost of construction endorsement, with no
reductions or deductions. Tenant shall, in connection with each annual policy renewal, deliver to
Landlord a redetermination of the full replacement value by the insurer or an endorsement
indicating that the Leased Property is insured for its full replacement value. If Tenant makes any
Permitted Alterations (as hereinafter defined) to the Leased Property, Landlord may have such full
replacement value redetermined at any time after such Permitted Alterations are made, regardless of
when the full replacement value was last determined.

     4.6 Blanket Policy. Notwithstanding anything to the contrary contained in this
Section, Tenant may carry the insurance required by this Article under a blanket policy of
insurance, provided that the coverage afforded Tenant will not be reduced or diminished or
otherwise be different from that which would exist under a separate policy meeting all of the
requirements of this Lease.

     4.7 No Separate Insurance. Tenant shall not take out separate insurance concurrent in
form or contributing in the event of loss with that required in this Article, or 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
Landlord and any mortgagees, are included therein as additional insureds or loss payees, the loss
is payable under said insurance in the same manner as losses are payable under this Lease, and such
additional insurance is not prohibited by the existing policies of insurance. Tenant shall
immediately notify Landlord of the taking out of such separate insurance or the increasing of any of the amounts of the existing insurance by
securing an additional policy or additional policies.

     4.8 Waiver of Subrogation. Each party hereto hereby waives any and every claim which
arises or may arise in its favor and against the other party hereto during the Term for any and all
loss of, or damage to, any of its property located within or upon, or constituting a part of, the
Leased Property, which loss or damage is covered by valid and collectible insurance policies, to
the extent that such loss or damage is recoverable under such policies. Said mutual waiver shall
be in addition to, and not in limitation or derogation of, any other waiver or release contained in
this Lease with respect to any loss or damage to property of the parties hereto. Inasmuch as the
said waivers will preclude the assignment of any aforesaid claim by way of

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subrogation (or otherwise) to an insurance company (or any other person), each party hereto agrees immediately to
give each insurance company which has issued to it policies of insurance, written notice of the
terms of said mutual waivers, and to have such insurance policies properly endorsed, if necessary,
to prevent the invalidation of said insurance coverage by reason of said waivers, so long as such
endorsement is available at a reasonable cost.

     4.9 Mortgages. The following provisions shall apply if Landlord now or hereafter
places a mortgage on the Leased Property or any part thereof: [i] Tenant shall obtain a standard
form of lender’s loss payable clause insuring the interest of the mortgagee; [ii] Tenant shall
deliver evidence of insurance to such mortgagee; [iii] loss adjustment shall require the consent of
the mortgagee, such consent not to be unreasonably withheld or delayed; and [iv] Tenant shall
provide such other information and documents as may reasonably be required by the mortgagee.

     4.10 Escrows. After an Event of Default occurs hereunder, Tenant shall make such
periodic payments of insurance premiums in accordance with Landlord’s requirements after receipt of
notice thereof from Landlord.

ARTICLE 5: INDEMNITY

     5.1 Tenant’s Indemnification. Except for claims arising out of the willful misconduct
or gross negligence of Landlord or its authorized representatives, Tenant hereby indemnifies and
agrees to hold harmless Landlord, any successors or assigns of Landlord, and Landlord’s and such
successor’s and assign’s directors, officers, employees and agents from and against any and all
demands, claims, causes of action, fines, penalties, damages (including consequential damages),
losses, liabilities (including strict liability), judgments, and expenses (including, without
limitation, reasonable attorneys’ fees, court costs, and the costs set forth in §8.7) incurred in
connection with or arising from: [i] the use or occupancy of the Leased Property by Tenant or any
persons claiming under Tenant; [ii] any activity, work, or thing done, or permitted or suffered by
Tenant in or about the Leased Property; [iii] any acts, omissions, or negligence of Tenant or any
person claiming under Tenant, or the contractors, agents, employees, invitees, or visitors of
Tenant or any such person; [iv] any breach, violation, or nonperformance by Tenant or any person
claiming under Tenant or the employees, agents, contractors, invitees, or visitors of Tenant or of
any such person, of any term, covenant, or provision of this Lease or any law, ordinance, or
governmental requirement of any kind, including, without limitation, any failure to comply with any applicable requirements under
the ADA; [v] any injury or damage to the person, property or business of Tenant, its employees,
agents, contractors, invitees, visitors, or any other person entering upon the Leased Property;
[vi] any construction, alterations, changes or demolition of the Facility performed by or
contracted for by Tenant or its employees, agents or contractors; and [vii] any obligations, costs
or expenses arising under any Permitted Exceptions. If any action or proceeding is brought against
Landlord, its employees, or agents by reason of any such claim, Tenant, upon notice from Landlord,
will defend the claim at Tenant’s expense with counsel reasonably satisfactory to Landlord. All
amounts payable to Landlord under this Section shall be payable on written demand and any such
amounts which are not paid within 10 days after demand therefor by Landlord shall bear interest at
the Overdue Rate. In case any action, suit or proceeding is

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brought against Tenant by reason of any such occurrence, Tenant shall use its best efforts to defend such action, suit or proceeding.

     5.1.1 Notice of Claim. Landlord shall notify Tenant in writing of any claim or action
brought against Landlord in which indemnity may be sought against Tenant pursuant to this Section.
Such notice shall be given in sufficient time to allow Tenant to defend or participate in such
claim or action, but the failure to give such notice in sufficient time shall not constitute a
defense hereunder nor in any way impair the obligations of Tenant under this Section unless the
failure to give such notice precludes Tenant’s defense of any such action.

     5.1.2 Survival of Covenants. The covenants of Tenant contained in this Section shall
remain in full force and effect after the termination of this Lease until the expiration of the
period stated in the applicable statute of limitations during which a claim or cause of action may
be brought and payment in full or the satisfaction of such claim or cause of action and of all
expenses and charges incurred by Landlord relating to the enforcement of the provisions herein
specified.

     5.1.3 Reimbursement of Expenses. Unless prohibited by law, Tenant hereby agrees to
pay to Landlord all of the reasonable fees, charges and reasonable out-of-pocket expenses related
to the Facility and required hereby, or incurred by Landlord in enforcing the provisions of this
Lease.

     5.2 Environmental Indemnity; Audits. Tenant hereby indemnifies and agrees to hold
harmless Landlord, any successors to Landlord’s interest in this Lease, and Landlord’s and such
successors’ directors, officers, employees and agents from and against any losses, claims, damages
(including consequential damages), penalties, fines, liabilities (including strict liability),
costs (including cleanup and recovery costs), and expenses (including expenses of litigation and
reasonable consultants’ and attorneys’ fees) incurred by Landlord or any other indemnitee or
assessed against any portion of the Leased Property by virtue of any claim or lien by any
governmental or quasi-governmental unit, body, or agency, or any third party, for cleanup costs or
other costs pursuant to any Environmental Law. Tenant’s indemnity shall survive the termination of
this Lease. Provided, however, Tenant shall have no indemnity obligation with respect to [i]
Hazardous Materials first introduced to the Leased Property subsequent to the date that Tenant’s
occupancy of the Leased Property shall have fully terminated; or [ii] Hazardous Materials
introduced to the Leased Property by Landlord, its agent, employees, successors or assigns. If at any time during the Term
of this Lease any governmental authority notifies Landlord or Tenant of a violation of any
Environmental Law or Landlord reasonably believes that a Facility may violate any Environmental
Law, Landlord may require one or more environmental audits of such portion of the Leased Property,
in such form, scope and substance as specified by Landlord, at Tenant’s expense. Tenant shall,
within 30 days after receipt of an invoice from Landlord, reimburse Landlord for all costs and
expenses incurred in reviewing any environmental audit, including, without limitation, reasonable
attorneys’ fees and costs.

     5.3 Limitation of Landlord’s Liability. Except for its own gross negligence and
willful misconduct, Landlord, its agents, and employees, will not be liable for any loss, injury,
death, or damage (including consequential damages) to persons, property, or Tenant’s business
occasioned by theft, act of God, public enemy, injunction, riot, strike, insurrection, war,

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court order, requisition, order of governmental body or authority, fire, explosion, falling objects,
steam, water, rain or snow, leak or flow of water (including water from the elevator system), rain
or snow from the Leased Property or into the Leased Property or from the roof, street, subsurface
or from any other place, or by dampness or from the breakage, leakage, obstruction, or other
defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, or lighting
fixtures of the Leased Property, or from construction, repair, or alteration of the Leased Property
or from any acts or omissions of any other occupant or visitor of the Leased Property, or from any
other cause beyond Landlord’s control.

ARTICLE 6: USE AND ACCEPTANCE OF PREMISES

     6.1 Use of Leased Property. Tenant shall use and occupy the Leased Property
exclusively for the Facility Uses specified for each Facility and for all lawful and licensed
ancillary uses, and for no other purpose without the prior written consent of Landlord. Tenant
shall obtain and maintain all approvals, licenses, and consents needed to use and operate the
Leased Property as herein permitted. Tenant shall deliver to Landlord complete copies of surveys,
examinations, certification and licensure inspections, compliance certificates, and other similar
reports issued to Tenant by any governmental agency within 10 days after Tenant’s receipt of each
item.

     6.2 Acceptance of Leased Property. Tenant acknowledges that [i] Tenant and its agents
have had an opportunity to inspect the Leased Property; [ii] Tenant has found the Leased Property
fit for Tenant’s use; [iii] Landlord will deliver the Leased Property to Tenant in “as-is”
condition; [iv] Landlord is not obligated to make any improvements or repairs to the Leased
Property; and [v] the roof, walls, foundation, heating, ventilating, air conditioning, telephone,
sewer, electrical, mechanical, elevator, utility, plumbing, and other portions of the Leased
Property are in good working order. Tenant waives any claim or action against Landlord with
respect to the condition of the Leased Property. LANDLORD MAKES NO WARRANTY OR REPRESENTATION,
EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY 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 QUALITY OF
THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY
TENANT.

     6.3 Conditions of Use and Occupancy. Tenant agrees that during the Term it shall use
and keep the Leased Property in a careful, safe and proper manner; not commit or suffer waste
thereon; not use or occupy the Leased Property for any unlawful purposes; not use or occupy the
Leased Property or permit the same to be used or occupied, for any purpose or business deemed
extrahazardous on account of fire or otherwise; keep the Leased Property in such repair and
condition as may be required by the Board of Health, or other city, state or federal authorities,
free of all cost to Landlord; not permit any acts to be done which will cause the cancellation,
invalidation, or suspension of any insurance policy; and permit Landlord and its agents to enter
upon the Leased Property at all reasonable times to examine the condition thereof. Landlord shall
have the right to have an annual inspection of the Leased Property performed and, with respect to
any such inspection next following a renovation or repair to a particular Facility,

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Tenant shall pay an inspection fee of $1,500.00 per such renovated Facility plus Landlord’s reasonable
out-of-pocket expenses within 30 days after receipt of Landlord’s invoice.

ARTICLE 7: MAINTENANCE AND MECHANICS’ LIENS

     7.1 Maintenance. Tenant shall maintain, repair, and replace the Leased Property,
including, without limitation, all structural and nonstructural repairs and replacements to the
roof, foundations, exterior walls, HVAC systems, equipment, parking areas, sidewalks, water, sewer
and gas connections, pipes and mains. Tenant shall pay, as Additional Rent, the full cost of
maintenance, repairs, and replacements. Tenant shall maintain all drives, sidewalks, parking
areas, and lawns on or about the Leased Property in a clean and orderly condition, free of
accumulations of dirt, rubbish, snow and ice. Tenant shall at all times maintain, operate and
otherwise manage the Leased Property on a basis and in a manner consistent with the standards of
the highest quality competing facilities in the market areas served by the Leased Property. All
repairs shall, to the extent reasonably achievable, be at least equivalent in quality to the
original work or the property to be repaired shall be replaced. Tenant will not take or omit to
take any action the taking or omission of which might materially impair the value or the usefulness
of the Leased Property or any parts thereof for the Facility Uses. Tenant shall permit Landlord to
inspect the Leased Property at all reasonable times, and if Landlord gives Tenant notice of
maintenance problem areas, Tenant shall deliver to Landlord a plan of correction within 10 Business
Days after receipt of the notice. Tenant shall diligently pursue correction of all problem areas
within 60 days after receipt of the notice and, upon expiration of the 60-day period, shall deliver
evidence of completion to Landlord or an interim report evidencing Tenant’s diligent progress
towards completion and, at the end of the next 60-day period, evidence of satisfactory completion.
Upon completion, Landlord shall have the right to re-inspect the Facility and, if applicable,
Tenant shall pay Landlord’s inspection fee and reasonable out-of-pocket expenses as set forth in
§6.3 within 30 days after receipt of Landlord’s invoice. At each inspection of the Leased Property
by Landlord, the Facility employee in charge of maintenance shall be available to tour the Facility
with Landlord and answer questions.

     7.2 Required Alterations. Tenant shall, at Tenant’s sole cost and expense, make any
additions, changes, improvements or alterations to the Leased Property, including structural
alterations, which may be required by any governmental authorities, including those required to
maintain licensure or certification under the Medicare and Medicaid programs (if so certified),
whether such changes are required by Tenant’s use, changes in the law, ordinances, or governmental
regulations, defects existing as of the date of this Lease, or any other cause whatever. All such
additions, changes, improvements or alterations shall be deemed to be Permitted Alterations and
shall comply with all laws requiring such alterations and with the provisions of §16.4.

     7.3 Mechanic’s Liens. Tenant shall have no authority to permit or create a lien
against Landlord’s interest in the Leased Property, and Tenant shall post notices or file such
documents as may be required to protect Landlord’s interest in the Leased Property against liens.
Tenant hereby agrees to defend, indemnify, and hold Landlord harmless from and against any
mechanic’s liens against the Leased Property by reason of work, labor, services or materials
supplied or claimed to have been supplied on or to the Leased Property by or on behalf of Tenant.
Tenant shall remove, cause the title company to insure over, bond-off, or otherwise

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obtain the release of any mechanic’s lien filed against the Leased Property within 20 days after notice of the
filing thereof. Tenant shall pay all expenses in connection therewith, including, without
limitation, damages, interest, court costs and reasonable attorneys’ fees.

     7.4 Replacements of Fixtures and Landlord’s Personal Property. Tenant shall not
remove Fixtures and Landlord’s Personal Property from the Leased Property except to replace the
Fixtures and Landlord’s Personal Property by other similar items of equal or higher quality and
value. Items being replaced by Tenant may be removed and shall become the property of Tenant and
items replacing the same shall be and remain the property of Landlord. Tenant shall execute, upon
written request from Landlord, any and all documents necessary to evidence Landlord’s ownership of
Landlord’s Personal Property and replacements therefor. Tenant may finance replacements for the
Fixtures and Landlord’s Personal Property by equipment lease or by a security agreement and
financing statement if [i] Landlord has consented to the terms and conditions of the equipment
lease or security agreement; and [ii] the equipment lessor or lender has entered into a
nondisturbance agreement with Landlord upon terms and conditions reasonably acceptable to Landlord,
including, without limitation, the following: [a] Landlord shall have the right (but not the
obligation) to assume such security agreement or equipment lease upon the occurrence of an Event of
Default under this Lease; [b] the equipment lessor or lender shall notify Landlord of any default
by Tenant under the equipment lease or security agreement and give Landlord a reasonable
opportunity to cure such default; and [c] Landlord shall have the right to assign its rights under
the equipment lease, security agreement, or nondisturbance agreement. Tenant shall, within 30 days
after receipt of an invoice from Landlord, reimburse Landlord for all costs and expenses incurred
in reviewing and approving the equipment lease, security agreement, and nondisturbance agreement,
including, without limitation, reasonable attorneys’ fees and costs.

ARTICLE 8: DEFAULTS AND REMEDIES

     8.1 Events of Default. The occurrence of any one or more of the following shall be an
event of default (“Event of Default”) hereunder:

          (a) Tenant fails to pay in full any installment of Base Rent, any Additional Rent or any other
monetary obligation payable by Tenant under this Lease (including the Option Price), within 10 days
after written notice thereof is given to Tenant by Landlord that such payment is due.

          (b) Landlord gives Tenant three or more notices of nonpayment of Rent (after expiration of the
10 day grace period) in any Lease Year.

          (c) Tenant, Subtenant or Guarantor (where applicable) fails to comply with any covenant set
forth in Article 14, §15.6, §15.7, §15.8 or Article 20 of this Lease.

          (d) Tenant fails to observe and perform any other covenant, condition or agreement under this
Lease to be performed by Tenant and [i] such failure continues for a period of 30 days after
written notice thereof is given to Tenant by Landlord; or [ii] if, by reason of the nature of such
default the same reasonably cannot be remedied within said 30 days, Tenant fails to proceed with
diligence reasonably satisfactory to Landlord after receipt of the notice to

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cure the default or, in any event, fails to cure such default within 75 days after receipt of the notice. The foregoing
notice and cure provisions do not apply to any Event of Default otherwise specifically described in
any other subsection of §8.1.

          (e) Tenant or Subtenant abandons or vacates any Facility Property or any material part
thereof, ceases to operate any Facility, ceases to do business for any one or more days without
Landlord’s prior written consent, not to be unreasonably withheld, or ceases to exist for any
reason for any one or more days.

          (f) [i] The filing by Tenant, Subtenant or Guarantor of a petition under the Bankruptcy Code
or the commencement of a bankruptcy or similar proceeding by Tenant, Subtenant or Guarantor; [ii]
the failure by Tenant, Subtenant or Guarantor within 60 days to dismiss an involuntary bankruptcy
petition or other commencement of a bankruptcy, reorganization or similar proceeding against such
party, or to lift or stay any execution, garnishment or attachment of such consequence as will
impair its ability to carry on its operation at the Leased Property; [iii] the entry of an order
for relief under the Bankruptcy Code in respect of Tenant, Subtenant or Guarantor; [iv] any
assignment by Tenant, Subtenant or Guarantor for the benefit of its creditors; [v] the entry by
Tenant, Subtenant or Guarantor into an agreement of composition with its creditors; [vi] the
approval by a court of competent jurisdiction of a petition applicable to Tenant, Subtenant or
Guarantor in any proceeding for its reorganization instituted under the provisions of any state or
federal bankruptcy, insolvency, or similar laws; [vii] appointment by final order, judgment, or
decree of a court of competent jurisdiction of a receiver of a whole or any substantial part of the
properties of Tenant, Subtenant or Guarantor (provided such receiver shall not have been removed or discharged within 60 days of the date of his
qualification).

          (g) [i] Any receiver, administrator, custodian or other person, in each case acting in respect
to Tenant or Subtenant, takes possession or control of any of the Leased Property and continues in
possession for 60 days; [ii] any writ against any of the Leased Property is not released within 60
days; [iii] any judgment is rendered or proceedings are instituted against the Leased Property,
Tenant or Subtenant which affect the Leased Property or any part thereof, which is not dismissed
for 60 days (except as otherwise provided in this Section); [iv] all or a substantial part of the
assets of Tenant, Subtenant or Guarantor are attached, seized, subjected to a writ or distress
warrant, or are levied upon, or come into the possession of any receiver, trustee, custodian, or
assignee for the benefit of creditors; [v] Tenant, Subtenant or Guarantor is enjoined, restrained,
or in any way prevented by court order, or any proceeding is filed or commenced seeking to enjoin,
restrain or in any way prevent Tenant, Subtenant or Guarantor from conducting all or a substantial
part of its business or affairs; or [vi] except as otherwise permitted hereunder, a final notice of
lien, levy or assessment is filed of record with respect to all or any part of the Leased Property
or any property of Tenant or Subtenant located at the Leased Property and is not dismissed,
discharged, or bonded-off within 30 days.

          (h) Any representation or warranty made by Tenant, Subtenant or Guarantor in this Lease or any
other document executed in connection with this Lease, any guaranty of or other security for this
Lease, or any report, certificate, application, financial statement or other instrument furnished
by Tenant, Subtenant or Guarantor pursuant hereto or

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thereto shall prove to be false, misleading or incorrect in any material respect as of the date made.

          (i) Tenant, any Subtenant, any Guarantor, or any Affiliate defaults on any indebtedness or
obligation to Landlord or any Landlord Affiliate, any Secured Obligation or any agreement with
Landlord or any Landlord Affiliate, including, without limitation, any lease with Landlord or any
Landlord Affiliate, or Tenant, any Subtenant or any Guarantor defaults on any Material Obligation,
and any applicable grace or cure period with respect to default under such indebtedness or
obligation expires without such default having been cured. This provision applies to all such
indebtedness, obligations and agreements as they may be amended, modified, extended, or renewed
from time to time.

          (j) The occurrence of any change in Tenant’s or Subtenant’s leasehold interest in the Leased
Property, without the prior written consent of Landlord.

          (k) Any guarantor of this Lease dies, dissolves, terminates, is adjudicated incompetent, files
a petition in bankruptcy, or is adjudicated insolvent under the Bankruptcy Code or any other
insolvency law, or fails to comply with any covenant or requirement of such guarantor set forth in
this Lease or in the guaranty of such guarantor, and in the case of the death or incompetency of an
individual guarantor only, Tenant fails within 30 days to deliver to Landlord a substitute guaranty
or other collateral reasonably satisfactory to Landlord.

          (l) The license for the Facility or any other Government Authorization is canceled, suspended,
reduced to provisional or temporary, or otherwise invalidated, or notice of impending license
revocation or decertification proceedings is received and Tenant or Subtenant fails to diligently
contest such proceeding, or any reduction occurs in the number of licensed beds or units at the
Facility, or an admissions ban is issued for the Facility.

     8.2 Remedies. Upon the occurrence of an Event of Default under this Lease or any Lease
Document and during the continuation of an Event of Default, and at any time thereafter until
Landlord waives the default in writing or acknowledges cure of the default in writing, at
Landlord’s option, without declaration, notice of nonperformance, protest, notice of protest,
notice of default, notice to quit or any other notice or demand of any kind, Landlord may exercise
any and all rights and remedies provided in this Lease or any Lease Document or otherwise provided
under law or in equity, including, without limitation, any one or more of the following remedies:

          (a) Landlord may re-enter and take possession of the Leased Property or any portion thereof
without terminating this Lease, and lease such Leased Property for the account of Tenant, holding
Tenant liable for all costs of Landlord in reletting such Leased Property and for the difference in
the amount received by such reletting and the amounts payable by Tenant under the Lease.

          (b) Landlord may terminate this Lease with respect to all or any portion of the Leased
Property by written notice to Tenant, exclude Tenant from possession of such Leased Property and
use efforts to lease such Leased Property to others, holding Tenant

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liable for the difference in the amounts received from such reletting and the amounts payable by Tenant under this Lease.

          (c) Landlord may re-enter the Leased Property or any portion thereof and have, repossess and
enjoy such Leased Property as if this Lease had not been made, and in such event, Tenant and its
successors and assigns shall remain liable for any contingent or unliquidated obligations or sums
owing at the time of such repossession.

          (d) Landlord may have access to and inspect, examine and make copies of the books and records
and any and all accounts, data and income tax and other returns of Tenant insofar as they pertain
to the Leased Property.

          (e) Landlord may accelerate all of the unpaid Rent hereunder so that the aggregate Rent for
the unexpired term of this Lease becomes immediately due and payable.

          (f) Landlord may take whatever action at law or in equity as may appear necessary or desirable
to collect the Rent and other amounts payable under this Lease then due and thereafter to become
due, or to enforce performance and observance of any obligations, agreements or covenants of Tenant
under this Lease.

          (g) With respect to the Collateral or any portion thereof and Landlord’s security interest
therein, Landlord may exercise all of its rights as secured party under Article 9 of the Uniform
Commercial Code as adopted in the State. Landlord may sell the Collateral by public or private
sale upon five days notice to Tenant or Subtenant. Tenant and Subtenant agree that a commercially reasonable manner of disposition of the Collateral shall include, without
limitation and at the option of Landlord, a sale of the Collateral, in whole or in part,
concurrently with the sale of the Leased Property.

          (h) Landlord may obtain control over and collect the Receivables and apply the proceeds of the
collections to satisfaction of the Secured Obligations unless prohibited by law. Tenant and
Subtenant appoint Landlord or its designee as attorney for Tenant and Subtenant, respectively, with
powers [i] to receive, to endorse, to sign and/or to deliver, in Tenant’s or Subtenant’s name or
Landlord’s name, any and all checks, drafts, and other instruments for the payment of money
relating to the Receivables, and to waive demand, presentment, notice of dishonor, protest, and any
other notice with respect to any such instrument; [ii] to sign Tenant’s or Subtenant’s name on any
invoice or bill of lading relating to any Receivable, drafts against account debtors, assignments
and verifications of Receivables, and notices to account debtors; [iii] to send verifications of
Receivables to any account debtor; and [iv] to do all other acts and things necessary to carry out
this Lease. Landlord shall not be liable for any omissions, commissions, errors of judgment, or
mistakes in fact or law made in the exercise of any such powers, except for Landlord’s gross
negligence and willful misconduct. At Landlord’s option, Tenant and Subtenant shall [i] provide
Landlord a full accounting of all amounts received on account of Receivables with such frequency
and in such form as Landlord may require, either with or without applying all collections on
Receivables in payment of the Secured Obligations or [ii] deliver to Landlord on the day of receipt
all such collections in the form received and duly endorsed by Tenant or Subtenant, as applicable.
At Landlord’s request, Tenant and Subtenant shall institute any action or enter into any settlement
determined by

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Landlord to be necessary to obtain recovery or redress from any account debtor in default of Receivables. Landlord may give notice of its security interest in the Receivables to
any or all account debtors with instructions to make all payments on Receivables directly to
Landlord, thereby terminating Tenant’s and Subtenant’s authority to collect Receivables. After
terminating Tenant’s and Subtenant’s authority to enforce or collect Receivables, Landlord shall
have the right to take possession of any or all Receivables and records thereof and is hereby
authorized to do so, and only Landlord shall have the right to collect and enforce the Receivables.
Prior to the occurrence of an Event of Default, at Tenant’s and Subtenant’s cost and expense, but
on behalf of Landlord and for Landlord’s account, Tenant and Subtenant shall collect or otherwise
enforce all amounts unpaid on Receivables and hold all such collections in trust for Landlord, but
Tenant and Subtenant may commingle such collections with Tenant’s and Subtenant’s own funds, until
Tenant’s and Subtenant’s authority to do so has been terminated, which may be done only after an
Event of Default. Notwithstanding any other provision hereof, Landlord does not assume any of
Tenant’s or Subtenant’s obligations under any Receivable, and Landlord shall not be responsible in
any way for the performance of any of the terms and conditions thereof by Tenant or Subtenant.

          (i) Without waiving any prior or subsequent Event of Default, Landlord may waive any Event of
Default or, with or without waiving any Event of Default, remedy any default.

          (j) Landlord may terminate its obligation, if any, to disburse Lease Advances.

          (k) Landlord may enter and take possession of the Land or any portion thereof and any one or
more Facilities without terminating the Lease and complete construction and renovation of the
Improvements (or any part thereof) and perform the obligations of Tenant under the Lease Documents.
Without limiting the generality of the foregoing and for the purposes aforesaid, Tenant hereby
appoints Landlord its lawful attorney-in-fact with full power to do any of the following: [i]
complete construction, renovation and equipping of the Improvements in the name of Tenant; [ii] use
unadvanced funds remaining under the Lease Amount, or funds that may be reserved, escrowed, or set
aside for any purposes hereunder at any time, or to advance funds in excess of the Lease Amount, to
complete the Improvements; [iii] make changes in the plans and specifications that shall be
necessary or desirable to complete the Improvements in substantially the manner contemplated by the
plans and specifications; [iv] retain or employ new general contractors, subcontractors,
architects, engineers, and inspectors as shall be required for said purposes; [v] pay, settle, or
compromise all existing bills and claims, which may be liens or security interests, or to avoid
such bills and claims becoming liens against the Facility or security interest against fixtures or
equipment, or as may be necessary or desirable for the completion of the construction and equipping
of the Improvements or for the clearance of title; [vi] execute all applications and certificates,
in the name of Tenant, that may be required in connection with any construction; [vii] do any and
every act that Tenant might do in its own behalf, to prosecute and defend all actions or
proceedings in connection with the Improvements; and [viii] to execute, deliver and file all
applications and other documents and take any and all actions necessary to transfer the operations
of the Facility to Landlord or Landlord’s designee. This power of attorney is a power coupled with
an interest and cannot be revoked.

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          (l) After the occurrence of an Event of Default and subject to the first paragraph of this
§8.2, Landlord may apply, with or without notice to Tenant, for the appointment of a receiver
(“Receiver”) for Tenant or Tenant’s business or for the Leased Property. Unless prohibited by law,
such appointment may be made either before or after termination of Tenant’s possession of the
Leased Property, without notice, without regard to the solvency or insolvency of Tenant at the time
of application for such Receiver and without regard to the then value of the Leased Property, and
Landlord may be appointed as Receiver. After the occurrence of an Event of Default, Landlord shall
be entitled to appointment of a receiver as a matter of right and without the need to make any
showing other than the existence of an Event of Default. The Receiver shall have the power to
collect the rents, income, profits and Receivables of the Leased Property during the pendency of
the receivership and all other powers which may be necessary or are usual in such cases for the
protection, possession, control, management and operation of the Leased Property during the whole
of said proceeding. All sums of money received by the Receiver from such rents and income, after
deducting therefrom the reasonable charges and expenses paid or incurred in connection with the
collection and disbursement thereof, shall be applied to the payment of the Rent or any other
monetary obligation of Tenant under this Lease, including, without limitation, any losses or
damages incurred by Landlord under this Lease. Tenant, if requested to do so, will consent to the
appointment of any such Receiver as aforesaid.

          (m) Landlord may terminate any management agreement with respect to any of the Leased Property
and shall have the right to retain one or more managers for the Leased Property at the expense of
Tenant, such manager(s) to serve for such term and at such compensation as Landlord reasonably
determines is necessary under the circumstances; provided however, that Tenant shall not be responsible for the expense of any such substitute manager
in excess of 5% of gross revenues of the respective Facility.

     8.3 Right of Set-Off. Landlord may, and is hereby authorized by Tenant to, at any
time and from time to time without advance notice to Tenant (any such notice being expressly waived
by Tenant), set-off or recoup and apply any and all sums held by Landlord, any indebtedness of
Landlord to Tenant, and any claims by Tenant against Landlord, against any obligations of Tenant
hereunder and against any claims by Landlord against Tenant, whether or not such obligations or
claims of Tenant are matured and whether or not Landlord has exercised any other remedies
hereunder. The rights of Landlord under this Section are in addition to any other rights and
remedies Landlord may have against Tenant.

     8.4 Performance of Tenant’s Covenants. Landlord may perform any obligation of Tenant
which Tenant has failed to perform within five days after Landlord has sent a written notice to
Tenant informing it of its specific failure (or such longer cure period as may be provided under
§8.1 above). Tenant shall reimburse Landlord on demand, as Additional Rent, for any expenditures
thus incurred by Landlord and shall pay interest thereon at the Overdue Rate (as defined in §8.6).

     8.5 Late Payment Charge. Tenant acknowledges that any default in the payment of any
installment of Rent payable hereunder will result in loss and additional expense to Landlord in
servicing any indebtedness of Landlord secured by the Leased Property, handling such delinquent
payments, and meeting its other financial obligations, and because such loss and

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additional expense is extremely difficult and impractical to ascertain, Tenant agrees that in the event any Rent
payable to Landlord hereunder is not paid within 10 days after the due date, Tenant shall pay a
late charge of 5% of the amount of the overdue payment as a reasonable estimate of such loss and
expenses, unless applicable law requires a lesser charge, in which event the maximum rate permitted
by such law may be charged by Landlord. The 10-day grace period set forth in this Section shall
not extend the time for payment of Rent or the period for curing any default or constitute a waiver
of such default.

     8.6 Interest. In addition to the late payment charge, any payment not made by Tenant
within 10 days after the due date shall thereafter bear interest at the rate (the “Overdue Rate”)
of the greater of [i] 18.5% per annum; or [ii] 2.5% per annum above the Lease Rate then in effect;
provided, however, that at no time will Tenant be required to pay interest at a rate higher than
the maximum legal rate and, provided further, that if a court of competent jurisdiction determines
that any other charges payable under this Lease are deemed to be interest, the Overdue Rate shall
be adjusted to ensure that the aggregate interest payable under this Lease does not accrue at a
rate in excess of the maximum legal rate. Tenant shall not be required to pay interest upon any
late payment fees assessed pursuant to §8.5.

     8.7 Litigation; Attorneys’ Fees. Within five days after Tenant or Subtenant has
knowledge of any litigation or other proceeding that may be instituted against Tenant or Subtenant,
against the Leased Property to secure or recover possession thereof, or that may affect the title to or the interest of Landlord
in the Leased Property, Tenant shall give written notice thereof to Landlord. Tenant shall pay all
reasonable costs and expenses incurred by Landlord in enforcing or preserving Landlord’s rights
under this Lease, whether or not an Event of Default has actually occurred or has been declared and
thereafter cured, including, without limitation, [i] the fees, expenses, and costs of any
litigation, appellate, receivership, administrative, bankruptcy, insolvency or other similar
proceeding; [ii] reasonable attorney, paralegal, consulting and witness fees and disbursements,
whether in-house counsel or outside counsel; and [iii] the expenses, including, without limitation,
lodging, meals, and transportation, of Landlord and its employees, agents, attorneys, and witnesses
in preparing for litigation, administrative, bankruptcy, insolvency or other similar proceedings
and attendance at hearings, depositions, and trials in connection therewith. All such reasonable
costs, expenses, charges and fees payable by Tenant shall be deemed to be Additional Rent under
this Lease.

     8.8 Escrows and Application of Payments. As security for the performance of the
Secured Obligations, Tenant hereby assigns to Landlord all its right, title, and interest in and to
all monies escrowed with Landlord under this Lease and all deposits with utility companies, taxing
authorities and insurance companies; provided, however, that Landlord shall not exercise its rights
hereunder until an Event of Default has occurred. Any payments received by Landlord under any
provisions of this Lease during the existence or continuance of an Event of Default shall be
applied to the Secured Obligations in the order which Landlord may determine.

     8.9 Remedies Cumulative. The remedies of Landlord herein are cumulative to and not in
lieu of any other remedies available to Landlord at law or in equity. The use of any one remedy
shall not be taken to exclude or waive the right to use any other remedy.

     8.10 Intentionally Omitted.

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     8.11 Obligations Under the Bankruptcy Code. Upon filing of a petition by or against
Tenant under the Bankruptcy Code, Tenant, as debtor and as debtor-in-possession, and any trustee
who may be appointed with respect to the assets of or estate in bankruptcy of Tenant, agree to pay
monthly in advance on the first day of each month, as reasonable compensation for the use and
occupancy of the Leased Property, an amount equal to all Rent due pursuant to this Lease. Included
within and in addition to any other conditions or obligations imposed upon Tenant or its successor
in the event of the assumption and/or assignment of this Lease are the following: [i] the cure of
any monetary defaults and reimbursement of pecuniary loss within not more than five business days
of assumption and/or assignment; [ii] the deposit of an additional amount equal to not less than
three months’ Base Rent, which amount is agreed to be a necessary and appropriate deposit to
adequately assure the future performance under this Lease of the Tenant or its assignee; and [iii]
the continued use of the Leased Property for the Facility Uses. Nothing herein shall be construed
as an agreement by Landlord to any assignment of this Lease or a waiver of Landlord’s right to seek
adequate assurance of future performance in addition to that set forth hereinabove in connection
with any proposed assumption and/or assignment of this Lease.

ARTICLE 9: DAMAGE AND DESTRUCTION

     9.1 Notice of Casualty. If the Leased Property shall be destroyed, in whole or in
part, or damaged by fire, flood, windstorm or other casualty in excess of $50,000.00 (a
“Casualty”), Tenant shall give written notice thereof to Landlord within three Business Days after
the occurrence of the Casualty. Within 15 days after the occurrence of the Casualty or as soon
thereafter as such information is reasonably available to Tenant, Tenant shall provide the
following information to Landlord: [i] the date of the Casualty; [ii] the nature of the Casualty;
[iii] a description of the damage or destruction caused by the Casualty, including the type of
Leased Property damaged and the area of the Improvements damaged; [iv] a preliminary estimate of
the cost to repair, rebuild, restore or replace the Leased Property; [v] a preliminary estimate of
the schedule to complete the repair, rebuilding, restoration or replacement of the Leased Property;
[vi] a description of the anticipated property insurance claim, including the name of the insurer,
the insurance coverage limits, the deductible amount, the expected settlement amount, and the
expected settlement date; and [vii] a description of the business interruption claim, including the
name of the insurer, the insurance coverage limits, the deductible amount, the expected settlement
amount, and the expected settlement date. Within five days after request from Landlord, Tenant
will provide Landlord with copies of all correspondence to the insurer and any other information
reasonably requested by Landlord.

     9.2 Substantial Destruction.

     9.2.1 If any Facility’s Improvements are substantially destroyed at any time other than during
the final 18 months of the Initial Term or any Renewal Term, Tenant shall promptly rebuild and
restore such Improvements in accordance with §9.4 and Landlord shall make the insurance proceeds
available to Tenant for such restoration. The term “substantially destroyed” means any casualty
resulting in the loss of use of 50% or more of the licensed beds at any one Facility.

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     9.2.2 If any Facility’s Improvements are substantially destroyed during the final 18 months of
the Initial Term or any Renewal Term, Landlord may elect to terminate this Lease with respect to
the entire Leased Property or terminate this Lease and all Affiliate Leases, at Landlord’s option,
and retain the insurance proceeds unless Tenant exercises its option to renew as set forth in
§9.2.3 or exercises its option to purchase as set forth in §9.2.4 or exercises its option to
rebuild the Leased Premises and continue the Lease in full force and effect. If Landlord elects to
terminate, Landlord shall give notice (“Termination Notice”) of its election to terminate this
Lease (or this Lease and all Affiliate Leases, if elected by Landlord) within 30 days after receipt
of Tenant’s notice of the damage. If Tenant does not exercise its option to renew under §9.2.3 or
its option to purchase under §9.2.4 or its option to rebuild under §9.2.5 within 15 days after
delivery of the Termination Notice, this Lease (or this Lease and all Affiliate Leases, if elected
by Landlord) shall terminate on the 15th day after delivery of the Termination Notice. If this
Lease (or this Lease and all Affiliate Leases, if elected by Landlord) is so terminated, Tenant
shall be liable to Landlord for all Rent and all other obligations accrued under this Lease through
the effective date of termination and each Affiliate shall be liable to Landlord for all Rent and all other obligations accrued under its respective Affiliate Lease through the
effective date of termination.

     9.2.3 If any Facility’s Improvements are substantially destroyed during the final 18 months of
the Initial Term or the Renewal Term and Landlord gives the Termination Notice, Tenant shall have
the option to renew this Lease with respect to the entire Leased Property (but not any part
thereof). Tenant shall give Landlord irrevocable notice of Tenant’s election to renew, and each
Affiliate Tenant shall give irrevocable notice of renewal, within 15 days after delivery of the
Termination Notice. If Tenant and each Affiliate Tenant elect to renew, the Renewal Term will be
in effect for the balance of the then current Term plus a 13-year period. The Renewal Term will
commence on the third day following Landlord’s receipt of Tenant’s and each Affiliate Tenant’s
notice of renewal. All other terms of this Lease for the Renewal Term shall be in accordance with
Article 12. The Improvements will be restored by Tenant in accordance with the provisions of this
Article 9 regarding partial destruction.

     9.2.4 If any Facility’s Improvements are substantially destroyed during the final 18 months of
the Initial Term or any Renewal Term and Landlord gives the Termination Notice, Tenant shall have
the option to purchase the entire Leased Property (but not any part thereof). Tenant shall give
Landlord notice of Tenant’s election to purchase, and if required by Landlord, each Affiliate
Tenant shall give notice of its election to purchase its respective Affiliate Facility, within 15
days after delivery of the Termination Notice. If Tenant and each Affiliate Tenant elect to
purchase their respective Leased Property, the Option Price will be determined in accordance with
§13.2 and the Fair Market Value will be determined in accordance with §13.3 except as otherwise
provided in this Section. For purposes of determining the Fair Market Value, the Leased Property
will be valued as if it had been restored to be equal in value to the Leased Property existing
immediately prior to the occurrence of the damage. All other terms of the option to purchase shall
be in accordance with Article 13. Landlord shall hold the insurance proceeds until the closing of
the purchase of the Leased Property and at closing shall deliver the proceeds to Tenant.

     9.2.5 If the Improvements are substantially destroyed during the final 18 months of the
Initial Term of any Renewal Term and Landlord gives the Termination Notice, Tenant

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shall have the option to rebuild the Leased Premises in accordance with §9.4. In the event Tenant elects to
rebuild the Leased Premises, Tenant shall be entitled to all insurance proceeds payable with
respect to the insurance maintained pursuant to this Lease.

     9.3 Partial Destruction. If any Facility’s Improvements are not substantially
destroyed, then Tenant shall comply with the provisions of §9.4 and Landlord shall make the
insurance proceeds available to Tenant for such restoration.

     9.4 Restoration. Tenant shall promptly repair, rebuild, or restore the damaged Leased
Property, at Tenant’s expense, so as to make the Leased Property at least equal in value to the
Leased Property existing immediately prior to such occurrence and as nearly similar to it in
character as is practicable and reasonable. Before beginning such repairs or rebuilding, or
letting any contracts in connection with such repairs or rebuilding, Tenant will submit for
Landlord’s approval, which approval Landlord will not unreasonably withhold or delay, plans and specifications meeting the requirements of §16.2 for such
repairs or rebuilding. Promptly after receiving Landlord’s approval of the plans and
specifications and receiving the proceeds of insurance, Tenant will begin such repairs or
rebuilding and will prosecute the repairs and rebuilding to completion with diligence, subject,
however, to strikes, lockouts, acts of God, embargoes, governmental restrictions, and other causes
beyond Tenant’s reasonable control. Landlord will make available to Tenant the net proceeds of any
fire or other casualty insurance paid to Landlord for such repair or rebuilding as the same
progresses, after deduction of any costs of collection, including attorneys’ fees. Payments will
be made against properly certified vouchers of a competent architect in charge of the work and
approved by Landlord. Payments for deposits for the repairing or rebuilding or delivery of
materials to the Facility will be made upon Landlord’s receipt of evidence satisfactory to Landlord
that such payments are required in advance. Prior to commencing the repairing or rebuilding,
Tenant shall deliver to Landlord for Landlord’s approval a schedule setting forth the estimated
monthly draws for such work. Landlord will contribute to such payments out of the insurance
proceeds an amount equal to the proportion that the total net amount received by Landlord from
insurers bears to the total estimated cost of the rebuilding or repairing, multiplied by the
payment by Tenant on account of such work. Landlord may, however, withhold 10% from each payment
until the work is completed and proof has been furnished to Landlord that no lien or liability has
attached or will attach to the Leased Property or to Landlord in connection with such repairing or
rebuilding. Upon the completion of rebuilding and the furnishing of such proof, the balance of the
net proceeds of such insurance payable to Tenant on account of such repairing or rebuilding will be
paid to Tenant. Tenant will obtain and deliver to Landlord a temporary or final certificate of
occupancy before the damaged Leased Property is reoccupied for any purpose. Tenant shall complete
such repairs or rebuilding free and clear of mechanic’s or other liens, and in accordance with the
building codes and all applicable laws, ordinances, regulations, or orders of any state, municipal,
or other public authority affecting the repairs or rebuilding, and also in accordance with all
requirements of the insurance rating organization, or similar body. Any remaining proceeds of
insurance after such restoration will be Tenant’s property.

     9.5 Insufficient Proceeds. If the proceeds of any insurance settlement are not
sufficient to pay the costs of Tenant’s repair, rebuilding or restoration under §9.4 in full,
Tenant shall deposit with Landlord at Landlord’s option, and within 10 days of Landlord’s request,
an amount sufficient in Landlord’s reasonable judgment to complete such repair, rebuilding or

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restoration. Tenant shall not, by reason of the deposit or payment, be entitled to any
reimbursement from Landlord or diminution in or postponement of the payment of the Rent.

     9.6 Not Trust Funds. Notwithstanding anything herein or at law or equity to the
contrary, none of the insurance proceeds paid to Landlord as herein provided shall be deemed trust
funds, and Landlord shall be entitled to dispose of such proceeds as provided in this Article 9.
Tenant expressly assumes all risk of loss, including a decrease in the use, enjoyment or value, of
the Leased Property from any casualty whatsoever, whether or not insurable or insured against.

     9.7 Landlord’s Inspection. During the progress of such repairs or rebuilding,
Landlord and its architects and engineers may, from time to time, inspect the Leased Property and will be furnished, if required by them, with
copies of all plans, shop drawings, and specifications relating to such repairs or rebuilding.
Tenant will keep all plans, shop drawings, and specifications at the building, and Landlord and its
architects and engineers may examine them at all reasonable times. If, during such repairs or
rebuilding, Landlord and its architects and engineers determine that the repairs or rebuilding are
not being done in substantial accordance with the approved plans and specifications, Landlord will
give prompt notice in writing to Tenant, specifying in detail the particular deficiency, omission,
or other respect in which Landlord claims such repairs or rebuilding do not accord with the
approved plans and specifications. Upon the receipt of any such notice, Tenant will cause
corrections to be made to any material deficiencies, omissions, or such other respect. Tenant’s
obligations to supply insurance, according to Article 4, will be applicable to any repairs or
rebuilding under this Section.

     9.8 Landlord’s Costs. Tenant shall, within 30 days after receipt of an invoice from
Landlord, pay the reasonable costs, expenses, and fees of any architect or engineer employed by
Landlord to review any plans and specifications and to supervise and approve any construction, or
for any services rendered by such architect or engineer to Landlord as contemplated by any of the
provisions of this Lease, or for any services performed by Landlord’s attorneys in connection
therewith.

     9.9 No Rent Abatement. Rent will not abate pending the repairs or rebuilding of the
Leased Property.

ARTICLE 10: CONDEMNATION

     10.1 Total Taking. If, by exercise of the right of eminent domain or by conveyance
made in response to the threat of the exercise of such right (“Taking”), any entire Facility
Property is taken, or so much of any Facility Property is taken that the Facility Property cannot
be used by Tenant for the purposes for which it was used immediately before the Taking, then this
Lease will end with respect to such Facility Property only on the earlier of the vesting of title
to the Facility Property in the condemning authority or the taking of possession of the Facility
Property by the condemning authority. Upon such termination, the Lease Amount shall be reduced by
the Allocated Lease Amount for such Facility Property and Rent hereunder shall be reduced
accordingly unless there is only one Facility Property subject to this Lease in which case the
Lease will terminate. All damages awarded for such Taking under the power of eminent

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domain shall be the property of Landlord, whether such damages shall be awarded as compensation for diminution
in value of the leasehold or the fee of the Facility Property. If this Lease is terminated with
respect to a Facility subject to a taking described in this Section, Tenant shall pay Landlord the
difference between the Allocated Lease Amount and any damages received by Landlord from the
condemning authority, and Landlord may, at its option, terminate this Lease.

     10.1.1 If any Facility Property is taken during the final 18 months of the Initial Term or any
Renewal Term and Landlord elects to terminate this Lease with respect to all Leased Property,
Tenant shall have the option to purchase all of the Leased Property. Tenant shall give Landlord
notice of Tenant’s election to purchase within 15 days after delivery of the notice of Landlord’s
intent to terminate. If Tenant elects to purchase all of the Leased Property, the Option Price will be determined in accordance with §13.2 and the Fair Market Value will be
determined in accordance with §13.3. All other terms of the option to purchase shall be in
accordance with Article 13.

     10.2 Partial Taking. If, after a Taking, so much of the Facility Property remains
that the Facility Property can be used for substantially the same purposes for which it was used
immediately before the Taking, then [i] this Lease will end as to the part taken on the earlier of
the vesting of title to such Leased Property in the condemning authority or the taking of
possession of such Leased Property by the condemning authority and the Rent will be adjusted
accordingly; [ii] at its cost, Tenant shall restore so much of the Facility Property as remains to
a sound architectural unit substantially suitable for the purposes for which it was used
immediately before the Taking, using good workmanship and new, first-class materials; [iii] upon
completion of the restoration, Landlord will pay Tenant the lesser of the net award made to
Landlord on the account of the Taking (after deducting from the total award, attorneys’,
appraisers’, and other fees and costs incurred in connection with the obtaining of the award and
amounts paid to the holders of mortgages secured by the Facility Property), or Tenant’s actual
out-of-pocket costs of restoring the Facility Property; and [iv] Landlord shall be entitled to the
balance of the net award. The restoration shall be completed and the condemnation award/proceeds
advanced to Tenant in accordance with §§9.4, 9.5, 9.7, 9.8 and 9.9 with such provisions deemed to
apply to condemnation instead of casualty.

     10.3 Condemnation Proceeds Not Trust Funds. Notwithstanding anything in this Lease or
at law or equity to the contrary, none of the condemnation award paid to Landlord shall be deemed
trust funds, and Landlord shall be entitled to dispose of such proceeds as provided in this Article
10. Tenant expressly assumes all risk of loss, including a decrease in the use, enjoyment, or
value, of the Leased Property from any Condemnation.

ARTICLE 11: TENANT’S PROPERTY

     11.1 Tenant’s Property. Tenant may, at its option, install, place, and use on the
Leased Property such fixtures, furniture, equipment, inventory and other personal property in
addition to Landlord’s Personal Property as may be required or as Tenant may, from time to time,
deem necessary or useful to operate the Leased Property for its permitted purposes. All fixtures,
furniture, equipment, inventory, and other personal property installed, placed, or used

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on the Leased Property which is owned by Tenant or leased by Tenant from third parties is hereinafter
referred to as “Tenant’s Property”.

     11.2 Requirements for Tenant’s Property. Tenant shall comply with all of the
following requirements in connection with Tenant’s Property:

          (a) Tenant shall, at Tenant’s sole cost and expense, maintain, repair, and replace Tenant’s
Property.

          (b) Tenant shall, at Tenant’s sole cost and expense, keep Tenant’s Property insured against
loss or damage by fire, vandalism and malicious mischief, sprinkler leakage, earthquake, and other
physical loss perils commonly covered by fire and extended coverage, boiler and machinery, and
difference in conditions insurance in an amount not less than 90% of the then full replacement cost
thereof. Tenant shall use the proceeds from any such policy for the repair and replacement of
Tenant’s Property. The insurance shall meet the requirements of §4.3.

          (c) Tenant shall pay all taxes applicable to Tenant’s Property.

          (d) If Tenant’s Property is damaged or destroyed by fire or any other cause, Tenant shall
promptly repair or replace Tenant’s Property unless Landlord elects to terminate this Lease
pursuant to §9.2.2 or Landlord determines that the Tenant Property is not necessary for the
operation of the Facility.

          (e) Unless an Event of Default or any event which, with the giving of notice or lapse of time,
or both, would constitute an Event of Default has occurred, Tenant may remove Tenant’s Property
from the Leased Property from time to time provided that [i] the items removed are not required to
operate the Leased Property for the Facility Uses (unless such items are being replaced by Tenant);
and [ii] Tenant repairs any damage to the Leased Property resulting from the removal of Tenant’s
Property.

          (f) Tenant shall not, without the prior written consent of Landlord or as otherwise provided
in this Lease, remove any Tenant’s Property or Leased Property. Tenant shall, at Landlord’s
option, remove Tenant’s Property upon the termination or expiration of this Lease and shall repair
any damage to the Leased Property resulting from the removal of Tenant’s Property. If Tenant fails
to remove Tenant’s Property within 30 days after request by Landlord, then Tenant shall be deemed
to have abandoned Tenant’s Property, Tenant’s Property shall become the property of Landlord, and
Landlord may remove, store and dispose of Tenant’s Property. In such event, Tenant shall have no
claim or right against Landlord for such property or the value thereof regardless of the
disposition thereof by Landlord. Tenant shall pay Landlord, upon demand, all expenses incurred by
Landlord in removing, storing, and disposing of Tenant’s Property and repairing any damage caused
by such removal. Tenant’s obligations hereunder shall survive the termination or expiration of
this Lease.

          (g) Tenant shall perform its obligations under any equipment lease or security agreement for
Tenant’s Property. For equipment loans or leases for equipment having an original cost in excess
of $50,000.00, Tenant shall use commercially reasonable efforts to cause such equipment lessor or
lender to enter into a nondisturbance agreement with Landlord

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upon terms and conditions reasonably acceptable to Landlord, including, without limitation, the following: [i] Landlord shall have the
right (but not the obligation) to assume such equipment lease or security agreement upon the
occurrence of an Event of Default by Tenant hereunder; [ii] such equipment lessor or lender shall
notify Landlord of any default by Tenant under the equipment lease or security agreement and give
Landlord a reasonable opportunity to cure such default; and [iii] Landlord shall have the right to
assign its interest in the equipment lease or security agreement and nondisturbance agreement.
Tenant shall, within 30 days after receipt of an invoice from Landlord, reimburse Landlord for all
costs and expenses incurred in reviewing and approving the equipment lease, security agreement and nondisturbance agreement, including,
without limitation, reasonable attorneys’ fees and costs.

ARTICLE 12: RENEWAL OPTIONS

     12.1 Renewal Options. Tenant has the option to renew (“Renewal Option”) this Lease
for one 13-year renewal terms (“Renewal Term”). Tenant can exercise the Renewal Option only upon
satisfaction of the following conditions:

          (a) There shall be no uncured Event of Default, or any event which with the passage of time or
giving of notice would constitute an Event of Default, at the time Tenant exercises its Renewal
Option nor on the date the Renewal Term is to commence.

          (b) Tenant shall give Landlord irrevocable written notice of renewal no later than the date
which is [i] 90 days prior to the expiration date of the then current Term; or [ii] 15 days after
Landlord’s delivery of the Termination Notice as set forth in §9.2.3.

          (c) Each Affiliate Tenant shall concurrently give irrevocable notice of renewal for each
Affiliate Lease (if applicable).

     12.2 Effect of Renewal. The following terms and conditions will be applicable if
Tenant renews the Lease:

          (a) Effective Date. Except as otherwise provided in §9.2.3, the effective date of the
Renewal Term will be the first day after the expiration date of the Initial Term. The first day of
the Renewal Term is also referred to as the Renewal Date.

          (b) Lease Amount. Effective as of the Renewal Date, a single Lease Amount will be
computed by summing all Lease Advance Amounts.

          (c) Lease Rate. Effective as of the Renewal Date, the Lease Rate will be computed
equal to the Renewal Rate.

          (d) Base Rent. Effective as of the Renewal Date, the Base Rent will be changed to
equal 1/12th of the product of [i] the Lease Amount on the Renewal Date times [ii] the new Lease
Rate equal to the Renewal Rate.

          (e) Other Terms and Conditions. Except for the modifications set forth in this §12.2,
all other terms and conditions of the Lease will remain the same for the Renewal Term. The Lease
Rate and Base Rent will increase annually as set forth in §2.2.

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     12.3 Effect of Non-Renewal or Expiration of Lease. The following terms and conditions
will be applicable if Tenant does not renew this Lease or exercise its Option to Purchase by the
expiration date for the then current Term:

          (a) Extension of Current Term. The current Term will be extended (the “Extended
Term”) for 180 days; provided, however, that the Extended Term will expire on such earlier date of
the closing of the sale pursuant to the Option to Purchase.

          (b) Lease Payments. During the Extended Term, Tenant shall continue to make monthly
payments of Rent (including Base Rent) based upon the applicable Lease Rate.

ARTICLE 13: OPTION TO PURCHASE

     13.1 Option to Purchase. Landlord hereby grants to Tenant an option to purchase
(“Option to Purchase”) all of the Leased Property (but not any part thereof) in accordance with the
terms and conditions of this Article 13. Tenant may exercise its Option to Purchase only by giving
an irrevocable notice of Tenant’s election to purchase the Leased Property (“Purchase Notice”) in
accordance with the following:

          (a) During the Initial Term or the Renewal Term, Tenant and each Affiliate Tenant (if any)
must give a Purchase Notice no earlier than the date which is 180 days, and no later than the date
which is 90 days, prior to the expiration date of the then current Term of this Lease and each
Affiliate Lease (if any).

          (b) If any Facility’s Improvements are substantially destroyed during the final 18 months of
the Initial Term or any Renewal Term, Tenant (and each Affiliate Tenant if required by Landlord)
must give a Purchase Notice within 15 days after Landlord gives the Termination Notice pursuant to
§9.2.4.

          (c) If this Lease has been terminated pursuant to a nonmonetary Event of Default, Tenant must
give a Purchase Notice within 15 days after Landlord gives the notice of Lease termination pursuant
to §8.2(b).

          (d) If any Facility Property is taken during the final 18 months of the Initial Term or any
Renewal Term by exercise of the right of eminent domain or by conveyance made in response to the
threat of the exercise of such right, Tenant must give a Purchase Notice within 30 days after
delivery of the notice of Landlord’s intent to terminate pursuant to §10.1.1.

Tenant shall have no right to exercise the Option to Purchase other than in accordance with
subparagraphs (a) — (d).

     13.2 Option Price. The option price (“Option Price”) will be an amount equal to the
greater of [i] the Lease Amount; or [ii] the sum of [a] the Lease Amount plus [b] 50% of the
difference between the Fair Market Value at the time of the option exercise and the Lease Amount.
In addition to the Option Price, Tenant shall pay all closing costs and expenses in connection with
the transfer of the Leased Property to Tenant, including, but not limited to, the following: [a]
real property conveyance or transfer fees or deed stamps; [b] title search fees, title

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insurance commitment fees, and title insurance premiums; [c] survey fees; [d] environmental assessment fees;
[e] recording fees; [f] attorneys’ fees of Landlord’s counsel; [g] fees of any escrow agent; and
[h] all amounts, costs, expenses, charges, Additional Rent and other items payable by Tenant to Landlord, including, but not limited
to, enforcement costs as set forth in §8.7.

     13.3 Fair Market Value. The fair market value (the “Fair Market Value”) of the Leased
Property shall be determined as follows.

     13.3.1 The parties shall attempt to determine the Fair Market Value by mutual agreement within
15 days after giving the Purchase Notice. However, if the parties do not agree on the Fair Market
Value within such 15-day period, the following provisions shall apply.

     13.3.2 Landlord and Tenant shall each give the other party notice of the name of an acceptable
appraiser 15 days after giving of the Purchase Notice. The two appraisers will then select a third
appraiser within an additional five days. Each appraiser must demonstrate to the reasonable
satisfaction of both Landlord and Tenant that it has significant experience in appraising
properties similar to the Leased Property. Within five days after designation, each appraiser
shall submit a resume to Landlord and Tenant setting forth such appraiser’s qualifications,
including education and experience with similar properties. A notice of objections to the
qualifications of any appraiser shall be given within 10 days after receipt of such resume. If a
party fails to timely object to the qualifications of an appraiser, then the appraiser shall be
conclusively deemed satisfactory. If a party gives a timely notice of objection to the
qualifications of an appraiser, then the disqualified appraiser shall be replaced by an appraiser
selected by the qualified appraisers or, if all appraisers are disqualified, then by an appraiser
selected by a commercial arbitrator acceptable to Landlord and Tenant.

     13.3.3 The Fair Market Value shall be determined by the appraisers within 60 days thereafter
as follows. Each of the appraisers shall be instructed to prepare an appraisal of the Leased
Property in accordance with the following instructions:

The Leased Property is to be valued upon the three conventional
approaches to estimate value known as the Income, Sales Comparison
and Cost Approaches. Once the approaches are completed, the
appraiser correlates the individual approaches into a final value
conclusion.

The three approaches to estimate value are summarized as follows:

Income Approach: This valuation approach recognizes that the value
of the operating tangible and intangible assets can be represented
by the expected economic viability of the business giving returns on
and of the assets.

Sales Comparison Approach: This valuation approach is based upon
the principle of substitution. When a facility is replaceable in
the market, the market approach assumes that value tends to be set
at the price of acquiring an equally desirable substitute facility.

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Since healthcare market conditions change and frequently are subject
to regulatory and financing environments, adjustments
need to be considered. These adjustments also consider the
operating differences such as services and demographics.

Cost Approach: This valuation approach estimates the value of the
tangible assets only. Value is represented by the market value of
the land plus the depreciated reproduction cost of all improvements
and equipment.

In general, the Income and Sales Comparison Approaches are considered the best representation of
value because they cover both tangibles and intangible assets, consider the operating
characteristics of the business and have the most significant influence on attracting potential
investors.

The appraised values submitted by the three appraisers shall be ranked from highest value to middle
value to lowest value, the appraised value (highest or lowest) which is furthest from the middle
appraised value shall be discarded, and the remaining two appraised values shall be averaged to
arrive at the Fair Market Value.

     13.3.4 In the event of any condemnation, similar taking or threat thereof with respect to any
part of the Leased Property or any insured or partially insured casualty loss to any part of the
Leased Property after Tenant has exercised an Option to Purchase, but before settlement, the Fair
Market Value of the Leased Property shall be redetermined as provided in this §13.3 to give effect
to such condemnation, taking or loss and shall take into account all available condemnation awards
and insurance proceeds.

     13.3.5 Tenant shall pay, or reimburse Landlord for, all costs and expenses in connection with
the appraisals.

     13.4 Closing. The purchase of the Leased Property by Tenant shall close on a date
agreed to by Landlord and Tenant which shall be not less than 60 days after Landlord’s receipt of
the Purchase Notice and not more than 60 days after the Fair Market Value of the Leased Property
has been determined. At the closing, Tenant shall pay the Option Price and all closing costs in
immediately available funds and Landlord shall convey title to the Leased Property to Tenant by a
transferable and recordable quitclaim deed and quitclaim bill of sale, subject only to Permitted
Exceptions and such other matters approved in writing by Tenant or created as a result of a default
by Tenant. Landlord shall execute a special warranty deed only if required by the title company to
issue a policy of title insurance insuring the interest of Tenant in the Leased Property.

     13.5 Failure to Close Option. If Tenant for any reason fails to purchase the Leased
Property after Tenant has given the Purchase Notice, then Tenant shall pay Landlord all costs and
expenses incurred by Landlord as a result of the failure to close, including costs of unwinding
swap transactions or other interest rate protection devices and preparing for the closing. Tenant
shall continue to be obligated as lessee hereunder for the remainder of the Term (including the
Extended Term as set forth in §12.3).

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     13.6 Failure to Exercise Option to Purchase and Renewal Option. If Tenant for any
reason does not exercise its Option to Purchase or Renewal Option in accordance with the terms and
conditions of this Lease before the expiration of the then current Term, Tenant shall be deemed to
have forfeited its contribution and all proprietary and ownership interest of Tenant in the Leased
Property including all of Tenant’s rights to exercise the Option to Purchase and Renewal Option.

ARTICLE 14: NEGATIVE COVENANTS

     Until the Secured Obligations shall have been performed in full, Tenant, Subtenant and
Guarantor covenant and agree that Tenant and Subtenant (and Guarantor where applicable) shall not
do any of the following without the prior written consent of Landlord which consent in each
instance shall not be unreasonably withheld:

     14.1 No Debt. Tenant and Subtenant shall not create, incur, assume, or permit to
exist any indebtedness other than [i] trade debt incurred in the ordinary course of Tenant’s
business; [ii] indebtedness for Facility working capital purposes; [iii] indebtedness relating to
the Letter of Credit; and [iv] indebtedness that is secured by any Permitted Lien.

     14.2 No Liens. Tenant and Subtenant shall not create, incur, or permit to exist any
lien, charge, encumbrance, easement or restriction upon the Leased Property or any lien upon or
pledge of any interest in Tenant or Subtenant, except for Permitted Liens.

     14.3 No Guaranties. Tenant and Subtenant shall not create, incur, assume, or permit
to exist any guarantee of any loan or other indebtedness except for the endorsement of negotiable
instruments for collection in the ordinary course of business.

     14.4 No Transfer. Tenant and Subtenant shall not sell, lease, sublease, mortgage,
convey, assign or otherwise transfer any legal or equitable interest in the Leased Property or any
part thereof, except for transfers made in connection with any Permitted Lien.

     14.5 No Dissolution. Tenant, Subtenant or Guarantor shall not dissolve, liquidate,
merge, consolidate or terminate its existence or sell, assign, lease, or otherwise transfer
(whether in one transaction or in a series of transactions) all or substantially all of its assets
(whether now owned or hereafter acquired).

     14.6 No Change in Management or Operation. No material change shall occur in the
management of Tenant, Subtenant or Guarantor or in the management or licensed operation of the
Facility. Each Subtenant shall remain the licensed operator of the Facility as specified on
Exhibit C. Lawrence R. Deering shall remain the Chief Executive Officer of Tenant and Joseph D.
Conte shall remain the Chief Operating Officer of Tenant.

     14.7 No Investments. Tenant and Subtenant shall not purchase or otherwise acquire,
hold, or invest in securities (whether capital stock or instruments evidencing indebtedness) of or
make loans or advances to any person, including, without limitation, any Guarantor, any Affiliate,
or any shareholder, member or partner of Tenant, Guarantor or any Affiliate, except for cash
balances temporarily invested in short-term or money market securities.

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     14.8 Contracts. Tenant and Subtenant shall not execute or modify any material
contracts or agreements with respect to the Facility except for contracts and modifications
approved by Landlord. Contracts made in the ordinary course of business and in an amount less than
$50,000.00 shall not be considered “material” for purposes of this paragraph.

     14.9 Subordination of Payments to Affiliates. After the occurrence of an Event of
Default and until such Event of Default is cured, Tenant, Subtenant and Guarantor shall not make
any payments or distributions (including, without limitation, salary, bonuses, fees, principal,
interest, dividends, liquidating distributions, management fees, cash flow distributions or lease
payments) to Guarantor, any Affiliate, or any shareholder, member or partner of Tenant, Guarantor
or any Affiliate.

     14.10 Change of Location or Name. Tenant and Subtenant shall not change any of the
following: [i] the location of the principal place of business or chief executive office of Tenant
or Subtenant, or any office where any of Tenant’s or Subtenant’s books and records are maintained;
or [ii] the name under which Tenant or Subtenant conducts any of its business or operations.

ARTICLE 15: AFFIRMATIVE COVENANTS

     15.1 Perform Obligations. Tenant and Subtenant shall each perform all of its
obligations under this Lease, the Government Authorizations, the Permitted Exceptions, and all
Legal Requirements. If applicable, Tenant and each Subtenant shall take all necessary action to
obtain all Government Authorizations required for the operation of the Facility as soon as possible
after the Effective Date.

     15.2 Proceedings to Enjoin or Prevent Construction. If any proceedings are filed
seeking to enjoin or otherwise prevent or declare invalid or unlawful Tenant’s construction,
occupancy, maintenance, or operation of the Facility or any portion thereof, Tenant will, in
accordance with and subject to the terms, conditions and provisions of §3.7, cause such proceedings
to be vigorously contested in good faith, and in the event of an adverse ruling or decision,
prosecute all allowable appeals therefrom, and will, without limiting the generality of the
foregoing, resist the entry or seek the stay of any temporary or permanent injunction that may be
entered, and use commercially reasonable efforts to bring about a favorable and speedy disposition
of all such proceedings and any other proceedings.

     15.3 Documents and Information.

     15.3.1 Furnish Documents. Tenant and each Subtenant shall periodically during the
term of the Lease deliver to Landlord the Annual Financial Statements, Periodic Financial
Statements, Annual Facility Budget, Annual Company Budget and all other documents, reports,
schedules and copies described on Exhibit E within the specified time periods. With each delivery
of Annual Financial Statements and Periodic Financial Statements (other than the monthly Facility
Financial Statement) to Landlord, Tenant and each Subtenant shall also deliver to Landlord a
certificate signed by the Chief Financial Officer, general partner or managing member (as
applicable) of Tenant and each Subtenant, an Annual Facility Financial Report or Quarterly Facility
Financial Report, as applicable, and a Quarterly Facility Accounts Receivable

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Aging Report all in the form of Exhibit F. In addition, Tenant and each Subtenant shall deliver to Landlord the
applicable Annual Facility Financial Report and the applicable Quarterly Facility Accounts
Receivable Aging Report (based upon internal financial statements) within 60 days after the end of
each fiscal year. After the occurrence of an Event of Default and receipt of Landlord’s written
request, Tenant shall deliver to Landlord an updated Annual Facility Budget and Annual Company
Budget (based on a 12-month rolling forward period) within 30 Business Days after receipt of
Landlord’s request.

     15.3.2 Furnish Information. Tenant and each Subtenant shall [i] promptly supply
Landlord with such information concerning its financial condition, affairs and property, as
Landlord may reasonably request in writing from time to time hereafter; [ii] promptly notify
Landlord in writing of any condition or event that constitutes a breach or event of default of any
term, condition, warranty, representation, or provisions of this Lease or any other agreement, and
of any material adverse change in its financial condition; [iii] maintain a standard and modern
system of accounting; [iv] permit Landlord or any of its agent or representatives to have access to
and to examine all of its books and records regarding the financial condition of the Facility at
any time or times hereafter during business hours and after reasonable oral or written notice; and
[v] permit Landlord to copy and make abstracts from any and all of said books and records.

     15.3.3 Further Assurances and Information. Tenant shall, on written request of
Landlord from time to time, execute, deliver, and furnish documents as may be reasonably necessary
to fully consummate the transactions contemplated under this Lease. Within 15 days after a request
from Landlord, Tenant and each Subtenant shall provide to Landlord such additional information
regarding Tenant, Tenant’s financial condition, Subtenant, each Subtenant’s financial condition or
the Facility as Landlord, or any existing or proposed creditor of Landlord, or any auditor or
underwriter of Landlord, may require from time to time, including, without limitation, a current
Tenant’s Certificate and Facility Financial Report in the form of Exhibit F. Upon Landlord’s
request, but not more than once every three years, Tenant shall provide to Landlord, at Tenant’s
expense, an appraisal prepared by an MAI appraiser setting forth the current fair market value of
the Leased Property.

     15.3.4 Material Communications. Tenant and each Subtenant shall transmit to Landlord,
within 10 Business Days after receipt thereof, any material communication affecting a Facility,
this Lease, the Legal Requirements or the Government Authorizations, and Tenant and each Subtenant
will promptly respond to Landlord’s inquiry with respect to such information. Tenant and each
Subtenant shall notify Landlord in writing within five days after Tenant or any Subtenant has
knowledge of any threatened or existing material litigation or material proceeding against, or
investigation of, Tenant, Subtenant, Guarantor, or the Facility that may affect the right to
operate the Facility or Landlord’s title to the Facility or Tenant’s interest therein.

     15.3.5 Requirements for Financial Statements. Tenant shall meet the following
requirements in connection with the preparation of the financial statements: [i] all audited
financial statements shall be prepared in accordance with general accepted accounting principles
consistently applied; [ii] all unaudited financial statements shall be prepared in a manner
substantially consistent with prior audited and unaudited financial statements submitted to
Landlord; [iii] all financial statements shall fairly present the financial condition and
performance for the relevant period in all material respects; [iv] the financial statements shall

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include all notes to the financial statements and a complete schedule of contingent liabilities and
transactions with Affiliates; and [v] the audited financial statements shall contain an unqualified
opinion.

     15.4 Compliance With Laws. Tenant and each Subtenant shall comply with all Legal
Requirements and keep all Government Authorizations in full force and effect. Tenant and each
Subtenant shall pay when due all taxes and governmental charges of every kind and nature that are
assessed or imposed upon Tenant and each Subtenant, respectively, at any time during the term of
the Lease, including, without limitation, all income, franchise, capital stock, property, sales and
use, business, intangible, employee withholding, and all taxes and charges relating to Tenant’s and
each Subtenant’s respective business and operations. Tenant and each Subtenant shall be solely
responsible for compliance with all Legal Requirements, including the ADA, and Landlord shall have
no responsibility for such compliance.

     15.5 Broker’s Commission. Tenant shall indemnify Landlord from claims of brokers
(other than those engaged by, or on behalf of Landlord) arising by the execution hereof or the
consummation of the transactions contemplated hereby and from expenses incurred by Landlord in
connection with any such claims (including attorneys’ fees).

     15.6 Existence and Change in Ownership. Tenant and Subtenant shall each maintain
their existence throughout the term of this Lease. Any change in the ownership of Subtenant,
change in control of Tenant, or disposition of shares of Tenant by Lawrence R. Deering or Joseph D.
Conte, whether direct or indirect, shall require Landlord’s prior written consent, which shall not
be unreasonably withheld. For purposes of the prior sentence, a change in control of Tenant shall
mean a future acquisition by any person or entity, or group of persons or entities acting in
concert, of more than 20% of the voting power of Tenant in the election of directors.
Notwithstanding the foregoing and anything else to the contrary contained elsewhere in the Lease or
the Guaranty, Landlord hereby consents to the following with respect to Tenant: [i] all purchases of capital stock of Tenant pursuant to
a Securities Purchase Agreement by and among Tenant, Behrman Capital II, L.P. (“Behrman”) and other
original purchasers (“Original Purchasers”) dated as of March 25, 1998 (all such stock is referred
to herein as the “Behrman Block”); [ii] sale or transfer of minority portions of the Behrman Block
provided that Behrman and the Original Purchasers of the Behrman Block at all times maintain, in
the aggregate, ownership of a majority portion of the Behrman Block; and [iii] any issuance or
sales of capital stock of Tenant in connection with a public stock offering that results in Tenant
becoming a reporting company under the Securities Exchange Act of 1934, as amended, or any public
offering of capital stock by Tenant thereafter.

     15.7 Financial Covenants. The defined terms used in this Section are defined in
§15.7.1. The method of calculating Net Worth and valuing assets shall be consistent with the
Financial Statements. The following financial covenants shall be met throughout the term of this
Lease:

     15.7.1 Definitions.

          (a) “Facility Cash Flow” means the net income of Tenant or Subtenant arising from its
respective Facility as reflected on the Facility Financial Statement plus [i] the

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amount of the provision for depreciation and amortization; [ii] the amount of the provision for management fees;
plus [iii] the amount of the provision for income taxes; plus [iv] the amount of the provision for
Rent payments allocated to the respective Facility and interest and lease payments, if any,
relating to the respective Facility; minus [v] an imputed management fee equal to 5% of gross
revenues of the respective Facility (net of contractual allowances); and minus [vi] an imputed
replacement reserve of $300 per licensed bed at the respective Facility, per year.

          (b) “Facility Coverage Ratio” is the ratio of [i] Facility Cash Flow of a respective Facility
for each applicable period; to [ii] the Rent payments allocated to the respective Facility and all
other debt service and lease payments relating to the respective Facility for the applicable
period.

          (c) “Net Worth” means an amount equal to the total consolidated fair market value of the
tangible assets of the person (excluding good will and other intangible assets) minus the total
consolidated liabilities of such person.

          (d) “Portfolio Cash Flow” means the aggregate net income arising from all Facilities under
this Lease as reflected on the Facility Financial Statement of each Facility plus [i] the amount of
the provision for depreciation and amortization; [ii] the amount of the provision for management
fees; plus [iii] the amount of the provision for income taxes; plus [iv] the amount of the
provision for Rent payments and interest and lease payments, if any, relating to the Facilities;
minus [v] an imputed management fee equal to 5% of gross revenues of the Facilities (net of
contractual allowances); and minus [vi] an imputed replacement reserve of $300 per licensed bed at
the Facilities, per year.

          (e) “Portfolio Coverage Ratio” is the ratio of [i] Portfolio Cash Flow for each applicable
period; to [ii] the Rent payments under this Lease and all other debt service and lease payments
relating to the Facilities for the applicable period.

     15.7.2 Coverage Ratio. Tenant shall maintain for each fiscal quarter a Portfolio
Coverage Ratio of not less than .85 to 1.00 for the first 12 months after the date hereof; 1.00 to
1.00 from month 13 through and including month 24 after the date hereof and 1.10 to 1.00
thereafter.

     15.7.3 Net Worth. Tenant shall maintain for each fiscal quarter a Net Worth of at
least $4,000,000.00 increased by the net income in any year since fiscal year 1998 with cash and
cash equivalents of at least $1,000,000.00. Subtenant shall maintain for each fiscal quarter a
positive Net Worth.

     15.7.4 Current Ratio. Tenant shall maintain for each fiscal quarter a ratio of
current assets to current liabilities of not less than 1.10 to 1.00.

     15.8 Facility Licensure and Certification. Tenant and each Subtenant, as applicable,
shall [i] give written notice to Landlord within 10 days after an inspection of the Facility with
respect to health care licensure or certification has occurred; and [ii] deliver to Landlord copies
of each of the reports, notices, correspondence and all other items and documents listed under item
no. 18 of Exhibit E within 10 days after receipt thereof. Tenant and

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Subtenant acknowledge that each has reviewed Exhibit E and agrees to the foregoing obligation. If Tenant or Subtenant
receives a Facility survey or inspection report with material deficiencies, notice of failure to
comply with a plan of correction or an HIPDB adverse action report, Tenant and the respective
Subtenant shall cure all deficiencies and implement all corrective actions within the earlier of
[a] the date required by the regulatory authority, or [b] 30 days after receipt of such notice and
shall deliver evidence of same to Landlord.

     15.9 Transfer of License and Facility Operations. If this Lease is terminated due to
expiration of the Term, pursuant to an Event of Default or for any reason other than Tenant’s
purchase of the Leased Property, or if Tenant or Subtenant vacates the Leased Property (or any part
thereof) without termination of this Lease, the following provisions shall be immediately
effective:

     15.9.1 Licensure. If this Lease is terminated due to expiration of the Term, pursuant
to an Event of Default or for any reason other than Tenant’s purchase of the Leased Property, or if
Tenant or Subtenant vacates the Leased Property without termination of this Lease, Tenant and each
Subtenant shall execute, deliver and file all documents and statements requested by Landlord to
effect the transfer of the Facility license and Government Authorizations to a replacement operator
designated by Landlord (“Replacement Operator”), subject to any required approval of governmental
regulatory authorities, and Tenant and each Subtenant shall provide to Landlord all information and
records required by Landlord in connection with the transfer of the license and Government
Authorizations.

     15.9.2 Facility Operations. In order to facilitate a responsible and efficient
transfer of the operations of the Facility, Tenant and Subtenant shall, if and to the extent requested by Landlord, [i] deliver to Landlord the most
recent updated reports, notices, schedules and documents listed under item nos. 16, 17, 18, 19 and
20 of Exhibit E; [ii] continue and maintain the operation of the Facility in the ordinary course of
business, including retention of all residents at the Facility to the fullest extent practicable
and consistent with applicable laws and regulations, until transfer of the Facility operations to
the Replacement Operator is completed; [iii] enter into such management agreements, operations
transfer agreements and other types of agreements that may be reasonably requested by Landlord or
the Replacement Operator; and [iv] provide reasonable access for Landlord and its agents to show
the Facility to potential replacement operators. Tenant and Subtenant consent to the distribution
by Landlord to potential replacement operators of Facility financial statements, licensure reports,
financial and property due diligence materials and other documents, materials and information
relating to the Facility. The provisions of this Section do not create or establish any rights in
Tenant, Subtenant or any third party and Landlord reserves all rights and remedies relating to
termination of this Lease.

     15.10 Bed Operating Rights. Tenant and Subtenant acknowledge and agree that the
rights to operate the beds located at the Facility as long term care beds under the law of the
State, to relocate such bed operating rights to another location or locations, and to transfer such
bed operating rights to third parties, are property of the Landlord and are an integral part of the
real and personal property that constitutes the Leased Property. Tenant and Subtenant have only
the right to use of such rights during the term of this Lease and subject to its terms and
conditions. All operating rights shall automatically revert to Landlord or Landlord’s designee
upon the expiration or termination of this Lease for any reason whatsoever (other than Tenant’s

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purchase of the Leased Property) without any requirement of a transfer or the payment of additional
consideration.

     15.11 Power of Attorney. Effective upon [i] the occurrence and during the continuance
of an Event of Default, or [ii] termination of this Lease for any reason other than Tenant’s
purchase of the Leased Property, Tenant and Subtenant hereby irrevocably and unconditionally
appoint Landlord, or Landlord’s authorized officer, agent, employee or designee, as Tenant’s and
Subtenant’s true and lawful attorney-in-fact, to act for Tenant and Subtenant in Tenant’s and
Subtenant’s respective name, place, and stead, to execute, deliver and file all applications and
any and all other necessary documents and statements to effect the issuance, transfer,
reinstatement, renewal and/or extension of the Facility license and all Governmental Authorizations
issued to Tenant and Subtenant or applied for by Tenant and Subtenant in connection with Tenant’s
and Subtenant’s operation of the Facility, to permit any designee of Landlord or any other
transferee to operate the Facility under the Governmental Authorizations, and to do any and all
other acts incidental to any of the foregoing. Tenant and Subtenant irrevocably and
unconditionally grant to Landlord as their respective attorney-in-fact full power and authority to
do and perform every act necessary and proper to be done in the exercise of any of the foregoing
powers as fully as Tenant and Subtenant might or could do if personally present or acting, with
full power of substitution, hereby ratifying and confirming all that said attorney shall lawfully
do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and is
irrevocable prior to Tenant’s purchase of the Leased Property.

ARTICLE 16: ALTERATIONS, CAPITAL IMPROVEMENTS, AND SIGNS

     16.1 Prohibition on Alterations and Improvements. Except for Permitted Alterations
(as hereinafter defined), Tenant shall not make any structural or nonstructural changes,
alterations, additions and/or improvements (hereinafter collectively referred to as “Alterations”)
to the Leased Property.

     16.2 Approval of Alterations. If Tenant desires to perform any Permitted Alterations,
Tenant shall deliver to Landlord plans, specifications, drawings, and such other information as may
be reasonably requested by Landlord (collectively the “Plans and Specifications”) showing in
reasonable detail the scope and nature of the Alterations that Tenant desires to perform. It is
the intent of the parties hereto that the level of detail shall be comparable to that which is
referred to in the architectural profession as “design development drawings” as opposed to working
or biddable drawings. Landlord agrees not to unreasonably delay its review of the Plans and
Specifications. Within 30 days after receipt of an invoice, Tenant shall reimburse Landlord for
all costs and expenses incurred by Landlord in reviewing and, if required, approving or
disapproving the Plans and Specifications, inspecting the Leased Property, and otherwise monitoring
compliance with the terms of this Article 16. Tenant shall comply with the requirements of §16.4
in making any Permitted Alterations.

     16.3 Permitted Alterations. Permitted Alterations means any one of the following:
[i] Alterations approved by Landlord; [ii] Alterations required under §7.2; [iii] Alterations
having a total cost of less than $25,000.00; or [iv] repairs, rebuilding and restoration required
or undertaken pursuant to §9.4.

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     16.4 Requirements for Permitted Alterations. Tenant shall comply with all of the
following requirements in connection with any Permitted Alterations:

          (a) The Permitted Alterations shall be made in accordance with the approved Plans and
Specifications.

          (b) The Permitted Alterations and the installation thereof shall comply with all applicable
legal requirements and insurance requirements.

          (c) The Permitted Alterations shall be done in a good and workmanlike manner, shall not impair
the value or the structural integrity of the Leased Property, and shall be free and clear of all
mechanic’s liens.

          (d) For any Permitted Alterations having a total cost of $100,000.00 or more, Tenant shall
deliver to Landlord a payment and performance bond, with a surety acceptable to Landlord, in an
amount equal to the estimated cost of the Permitted Alterations, guaranteeing the completion of the
work free and clear of liens and in accordance with the approved Plans and Specifications, and
naming Landlord and any mortgagee of Landlord as joint obligees on such bond.

          (e) Tenant shall, at Tenant’s expense, obtain a builder’s completed value risk policy of
insurance insuring against all risks of physical loss, including collapse and transit coverage, in
a nonreporting form, covering the total value of the work performed, and equipment, supplies, and
materials, and insuring initial occupancy. Landlord and any mortgagee of Landlord shall be
additional insureds of such policy. Landlord shall have the right to approve the form and
substance of such policy.

          (f) Tenant shall pay the premiums required to increase the amount of the insurance coverages
required by Article 4 to reflect the increased value of the Improvements resulting from
installation of the Permitted Alterations, and shall deliver to Landlord a certificate evidencing
the increase in coverage.

          (g) Tenant shall, not later than 60 days after completion of the Permitted Alterations,
deliver to Landlord a revised “as-built” survey of the respective Facility if the Permitted
Alterations altered the Land or “footprint” of the Improvements and an “as-built” set of Plans and
Specifications for the Permitted Alterations in form and substance satisfactory to Landlord.

          (h) Tenant shall, not later than 30 days after Landlord sends an invoice, reimburse Landlord
for any reasonable costs and expenses, including attorneys’ fees and architects’ and engineers’
fees, incurred in connection with reviewing and approving the Permitted Alterations and ensuring
Tenant’s compliance with the requirements of this Section. The daily fee for Landlord’s consulting
engineer is $750.00.

     16.5 Ownership and Removal of Permitted Alterations. The Permitted Alterations shall
become a part of the Leased Property, owned by Landlord, and leased to Tenant subject to the terms
and conditions of this Lease. Tenant shall not be required or permitted to remove any Permitted
Alterations.

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     16.6 Minimum Qualified Capital Expenditures. During each calendar year of the Term,
Tenant shall expend at least $125.00 per bed for Qualified Capital Expenditures to improve the
Facilities (provided that as to any Facility with respect to which a certificate of occupancy was
not issued prior to the end of the first calendar year, the minimum qualified capital expenditures
required by this Section shall be waived until the calendar year immediately following the year in
which such certificate of occupancy is issued). Thereafter throughout the Term, Tenant shall
expend such amount each calendar year, increased annually in proportion to increases in the CPI.
At least annually, at the request of Landlord, Landlord and Tenant shall review capital
expenditures budgets and agree on modifications, if any, required by changed circumstances and the
changed conditions of the Leased Property.

     16.7 Signs. Tenant may, at its own expense, erect and maintain identification signs
at the Leased Property, provided such signs comply with all laws, ordinances, and regulations.
Upon the termination or expiration of this Lease, Tenant shall, within 30 days after notice from
Landlord, remove the signs and restore the Leased Property to its original condition.

ARTICLE 17: [RESERVED]

ARTICLE 18: ASSIGNMENT AND SALE OF LEASED PROPERTY

     18.1 Prohibition on Assignment and Subletting. Tenant acknowledges that Landlord has
entered into this Lease in reliance on the personal services and business expertise of Tenant.
Tenant may not assign, sublet, mortgage, hypothecate, pledge, grant a right of first refusal or
transfer any interest in this Lease, or in the Leased Property, in whole or in part, without the
prior written consent of Landlord, which consent shall not be unreasonably withheld. The following
transactions will be deemed an assignment or sublease requiring Landlord’s prior written consent:
[i] an assignment by operation of law; [ii] an imposition (whether or not consensual) of a lien,
mortgage, or encumbrance upon Tenant’s interest in the Lease; [iii] an arrangement (including, but
not limited to, management agreements, concessions, licenses, and easements) which allows the use
or occupancy of all or part of the Leased Property by anyone other than Tenant; and [iv] a change
of ownership of Tenant. Landlord’s consent to any assignment, right of first refusal or sublease
will not release Tenant (or any guarantor) from its payment and performance obligations under this
Lease, but rather Tenant, any guarantor, and Tenant’s assignee or sublessee will be jointly and
severally liable for such payment and performance. An assignment, right of first refusal or
sublease without the prior written consent of Landlord will be void at Landlord’s option.
Landlord’s consent to one assignment, right of first refusal or sublease will not waive the
requirement of its consent to any subsequent assignment or sublease. Notwithstanding the
foregoing, Tenant may enter into a Sublease with each Subtenant for each Facility provided that
each Sublease complies with §18.2.

     18.2 Requests for Landlord’s Consent to Assignment, Sublease or Management Agreement.
If Tenant is required to obtain Landlord’s consent to a specific assignment, sublease, or
management agreement, Tenant shall give Landlord [i] the name and address of the proposed assignee,
subtenant or manager; [ii] a copy of the proposed assignment, sublease or management agreement;
[iii] reasonably satisfactory information about the nature, business and business history of the
proposed assignee, subtenant, or manager and its proposed use of the Leased Property; and [iv]
banking, financial, and other credit information, and references about

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the proposed assignee, subtenant or manager sufficient to enable Landlord to determine the financial responsibility and
character of the proposed assignee, subtenant or manager. Any assignment, sublease or management
agreement shall contain provisions to the effect that [a] such assignment, sublease or management
agreement is subject and subordinate to all of the terms and provisions of this Lease and to the
rights of Landlord and that the assignee, subtenant or manager shall comply with all applicable
provisions of this Lease; [b] such assignment, sublease or management agreement may not be modified
without the prior written consent of Landlord not to be unreasonably withheld or delayed; [c] if
this Lease shall terminate before the expiration of such assignment, sublease or management
agreement, the assignee, subtenant or manager thereunder will, solely at Landlord’s option and only
upon the express written notice of attornment from Landlord, attorn to Landlord and waive any right
the assignee, subtenant or manager may have to terminate the assignment, sublease or management
agreement or surrender possession thereunder as a result of the termination of this Lease; and [d]
if the assignee, subtenant or manager receives a written notice from Landlord stating that Tenant is in
default under this Lease, the assignee, subtenant or manager shall thereafter pay all rentals or
payments under the assignment, sublease or management agreement directly to Landlord until such
default has been cured. Any attempt or offer by an assignee, subtenant or manager to attorn to
Landlord shall not be binding or effective without the express written consent of Landlord. Tenant
hereby collaterally assigns to Landlord, as security for the performance of its obligations
hereunder, all of Tenant’s right, title, and interest in and to any assignment, sublease or
management agreement now or hereafter existing for all or part of the Leased Property. Tenant
shall, at the request of Landlord, execute such other instruments or documents as Landlord may
request to evidence this collateral assignment. If Landlord, in its sole and absolute discretion,
consents to such assignment, sublease, or management agreement, such consent shall not be effective
until [i] a fully executed copy of the instrument of assignment, sublease or management agreement
has been delivered to Landlord; [ii] in the case of an assignment, Landlord has received a written
instrument in which the assignee has assumed and agreed to perform all of Tenant’s obligations
under the Lease; and [iii] Tenant has paid to Landlord a fee in the amount of $2,500.00 (applies
only to consent requests after the Closing); and [iv] Landlord has received reimbursement from
Tenant or the assignee for all reasonable attorneys’ fees and expenses and all other reasonable
out-of-pocket expenses incurred in connection with determining whether to give its consent, giving
its consent and all matters relating to the assignment (applies only to consent requests after the
Closing).

     18.3 Agreements with Residents. Notwithstanding §18.1, Tenant and Subtenant may enter
into an occupancy agreement with residents of the Leased Property without the prior written consent
of Landlord provided that [i] the agreement does not provide for lifecare services; [ii] the
agreement does not contain any type of rate lock provision or rate guaranty for more than one
calendar year; [iii] the agreement does not provide for any rent reduction or waiver other than for
an introductory period not to exceed six months; [iv] Tenant and Subtenant may not collect rent for
more than one month in advance; and [v] all residents of the Leased Property are accurately shown
in accounting records for the Facility.

     18.4 Sale of Leased Property. If Landlord or any subsequent owner of the Leased
Property sells the Leased Property, its liability for the performance of its agreements in this
Lease will end on the date of the sale of the Leased Property, and Tenant will look solely to the
purchaser for the performance of those agreements provided the subsequent owner assumes

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either in writing or as a matter of law, all obligations of Landlord under the terms of the Lease and
acknowledges Tenant’s Option to Purchase set forth herein. For purposes of this Section, any
holder of a mortgage or security agreement which affects the Leased Property at any time, and any
landlord under any lease to which this Lease is subordinate at any time, will be a subsequent owner
of the Leased Property when it succeeds to the interest of Landlord or any subsequent owner of the
Leased Property.

     18.5 Assignment by Landlord. Landlord may transfer, assign, mortgage, collaterally
assign, or otherwise dispose of Landlord’s interest in this Lease or the Leased Property.

ARTICLE 19: HOLDOVER AND SURRENDER

     19.1 Holding Over. If Tenant, with or without the express or implied consent of
Landlord, continues to hold and occupy the Leased Property (or any part thereof) after the
expiration of the Term or earlier termination of this Lease (other than pursuant to Tenant’s
purchase of the Leased Property), such holding over beyond the Term and the acceptance or
collection of Rent in the amount specified below by Landlord shall operate and be construed as
creating a tenancy from month to month and not for any other term whatsoever. Said month-to-month
tenancy may be terminated by Landlord by giving Tenant 10 days written notice, and at any time
thereafter Landlord may re-enter and take possession of the Leased Property. If Tenant continues
after the expiration of the Term or earlier termination of this Lease to hold and occupy the Leased
Property whether as a month-to-month tenant or a tenant at sufferance or otherwise, Tenant shall
pay Rent for each month in an amount equal to the sum of [i] the Base Rent payable during the month
in which such expiration or termination occurs, plus [ii] all Additional Rent accruing during the
month, plus [iii] any and all other sums payable by Tenant pursuant to this Lease. During any
continued tenancy after the expiration of the Term or earlier termination of this Lease, 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 applicable law, to
continue its occupancy and use of the Leased Property until the tenancy is terminated. 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.

     19.2 Surrender. Except for [i] Permitted Alterations; [ii] normal and reasonable wear
and tear (subject to the obligation of Tenant to maintain the Leased Property in good order and
repair during the Term); and [iii] damage and destruction not required to be repaired by Tenant,
Tenant shall surrender and deliver up the Leased Property at the expiration or termination of the
Term in as good order and condition as of the Commencement Date.

ARTICLE 20: LETTER OF CREDIT

     20.1 Terms of Letter of Credit. As security for the performance of its obligations
under this Lease, Tenant shall provide Landlord with the Letter of Credit at the Closing. Tenant
shall maintain the Letter of Credit in favor of Landlord until the Secured Obligations are
performed in full. The Letter of Credit shall permit partial and full draws and shall permit
drawing upon presentation of a draft drawn on the issuer and a certificate signed by

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Landlord stating that an Event of Default has occurred under this Lease. The Letter of Credit shall be for
an initial term of one year and shall be automatically renewed annually for successive terms of at
least one year unless Landlord receives notice from the Issuer, by certified mail, at least 60 days
prior to the expiry date then in effect that the Letter of Credit will not be extended for an
additional one-year period.

     20.2 Replacement Letter of Credit. Tenant shall provide a replacement Letter of
Credit which satisfies the requirements of §20.1 from an Issuer acceptable to Landlord within 30
days after the occurrence of any of the following: [i] Landlord’s receipt of notice from the Issuer that the Letter of Credit will not be
extended for an additional one-year period; [ii] Landlord gives notice to Tenant that the Lace
Financial Service Rating (or rating of a comparable rating service) of the Issuer is less than a
“C+” (or the comparable rating of such other rating service); [iii] Landlord gives notice to Tenant
of the admission by Issuer in writing of its inability to pay its debts generally as they become
due, or Issuer’s filing of a petition in bankruptcy or petitions to take advantage of any
insolvency act, making an assignment for the benefit of its creditors, consenting to the
appointment of a receiver of itself or of the whole or any substantial part of its property, or
filing a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws
or any other applicable law, regulation, or statute of the United States of America or any state
thereof or [iv] Issuer is at any time determined not to be at least “adequately capitalized,” as
that term is defined and used in the “Prompt Corrective Action” statute, 12 U.S.C. §1831o, and
implementing regulations. Tenant’s failure to comply with the requirements of this Section shall
be an immediate Event of Default without any notice (other than as provided for in this Section),
cure or grace period. Upon such Event of Default, Landlord shall be entitled to draw upon the
Letter of Credit and Landlord may, solely at its option and without any obligation to do so,
require Tenant to obtain a replacement Letter of Credit satisfactory to Landlord with the Letter of
Credit proceeds made available to Tenant solely to secure Tenant’s reimbursement obligation for the
replacement Letter of Credit.

     20.3 Draws. Landlord may draw under the Letter of Credit upon the occurrence of an
Event of Default hereunder. Any such draw shall not cure an Event of Default. The proceeds from
the Letter of Credit (“LC Proceeds”) shall be the sole property of Landlord and may be used,
retained and invested by Landlord without restriction or limitation. Tenant shall have no interest
in or claim against the LC Proceeds. Landlord shall have the right and option, but not the
obligation, to apply all or any portion of the LC Proceeds to pay all or any portion of [i] all
Rent and other charges and expenses payable by Tenant under this Lease; plus [ii] all reasonable
expenses and costs incurred by Landlord in enforcing or preserving Landlord’s rights under this
Lease or any security for the Lease, including, without limitation, [a] the fees, expenses, and
costs of any litigation, appellate, receivership, administrative, bankruptcy, insolvency, or other
similar proceeding; [b] attorney, paralegal, consulting and witness fees and disbursements; and [c]
the expenses, including, without limitation, lodging, meals and transportation of Landlord and its
employees, agents, attorneys, and witnesses in preparing for litigation, administrative,
bankruptcy, insolvency, or similar proceedings and attendance at hearings, depositions, and trials
in connection therewith.

     With respect to any portion of the Letter of Credit proceeds that is not applied to payment of
Tenant’s Obligations, Landlord shall have the option to either [i] deposit the proceeds into an
interest bearing account with a financial institution chosen by Landlord

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(“LC Account”); or [ii] require Tenant to obtain a replacement Letter of Credit satisfactory to Landlord, with the Letter
of Credit proceeds made available to Tenant to secure Tenant’s reimbursement obligation for the
Letter of Credit. All interest accruing on the LC Account shall be paid to Landlord and may, from
time to time, be withdrawn from the LC Account by Landlord. At any time and from time to time
until Tenant’s Obligations are performed in full, Landlord may apply all or any portion of the
funds held in the LC Account to payment of all or any portion of Tenant’s Obligations. Within 10
days after any such payment from the LC Account, Landlord shall give written notice to Tenant describing the amount of such payment and how it was applied to Tenant’s
Obligations.

     Upon the occurrence of either [i] Landlord’s receipt of a replacement Letter of Credit that
satisfies the requirements of §20.1 and is issued by an Issuer acceptable to Landlord; or [ii] the
date on which all of Tenant’s Obligations are performed in full, Landlord shall pay the balance of
the LC Account to Tenant.

     20.4 Partial Draws. Upon the occurrence of a monetary Event of Default under this
Lease, Landlord may, at its option, make a partial draw on the Letter of Credit in an amount not to
exceed the amount of Tenant’s monetary obligations under this Lease then past due. If Landlord
then applies the proceeds from such partial draw on the Letter of Credit to payment of all or any
portion of Tenant’s monetary obligations then past due, Tenant shall, within 10 days after notice
from Landlord of such partial draw and payment, cause the amount of the Letter of Credit to be
reinstated to the amount in effect prior to such partial draw. Tenant’s failure to comply with the
requirements of this Section shall be an immediate Event of Default under the Lease Documents
without any notice (other than as provided for in this Section), cure or grace period. Landlord’s
rights under this §20.4 are in addition to, and not in limitation of, Landlord’s rights under
§20.3.

     20.5 Substitute Letter of Credit. Tenant may, from time to time, deliver to Landlord
a substitute Letter of Credit meeting the requirements of this Lease and issued by an Issuer
acceptable to Landlord. Upon Landlord’s approval of the substitute Letter of Credit, Landlord
shall release the previous Letter of Credit to Tenant.

     20.6 Retention of Letter of Credit. Upon termination of this Lease due to expiration
of the Term, pursuant to an Event of Default or for any reason other than Tenant’s purchase of the
Leased Property, Landlord shall be entitled to hold the Letter of Credit until the Secured
Obligations are performed in full or are released by Landlord.

ARTICLE 21: QUIET ENJOYMENT, SUBORDINATION, ATTORNMENT AND ESTOPPEL CERTIFICATES

     21.1 Quiet Enjoyment. So long as Tenant performs all of its obligations under this
Lease, Tenant’s possession of the Leased Property will not be disturbed by Landlord or any party
claiming by, through or under Landlord.

     21.2 Subordination. Subject to the terms and conditions of this Section, this Lease
and Tenant’s rights under this Lease are subordinate to any ground lease or underlying lease, first
mortgage, first deed of trust, or other first lien against the Leased Property, together

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with any renewal, consolidation, extension, modification or replacement thereof, which now or at any
subsequent time affects the Leased Property or any interest of Landlord in the Leased Property,
except to the extent that any such instrument expressly provides that this Lease is superior. The
foregoing subordination provision is expressly conditioned upon any lessor or mortgagee being obligated and bound to recognize Tenant as
the tenant under this Lease, and such lessor or mortgagee shall have no right to disturb Tenant’s
possession, use and occupancy of the Leased Property or Tenant’s enjoyment of its rights under this
Lease unless and until an Event of Default occurs hereunder. Any foreclosure action or proceeding
by any mortgagee with respect to the Leased Property, or the acceptance of a deed in lieu thereof,
shall not affect Tenant’s rights under this Lease and shall not terminate this Lease unless and
until an Event of Default occurs hereunder. The foregoing provisions will be self-operative, and
no further instrument will be required in order to effect them. However, Tenant shall execute,
acknowledge and deliver to Landlord, at any time and from time to time upon demand by Landlord,
such documents as may be requested by Landlord or any mortgagee or any holder of any mortgage or
other instrument described in this Section, to confirm or effect any such subordination, provided
that any such document shall include a nondisturbance provision as set forth in this Section
satisfactory to Tenant. Any mortgagee of the Leased Property shall be deemed to be bound by the
nondisturbance provision set forth in this Section. If Tenant fails or refuses to execute,
acknowledge, and deliver any such document within 20 days after written demand, Landlord may
execute acknowledge and deliver any such document on behalf of Tenant as Tenant’s attorney-in-fact.
Tenant hereby constitutes and irrevocably appoints Landlord, its successors and assigns, as
Tenant’s attorney-in-fact to execute, acknowledge, and deliver on behalf of Tenant any documents
described in this Section. This power of attorney is coupled with an interest and is irrevocable.

     21.3 Attornment. If any holder of any mortgage, indenture, deed of trust, or other
similar instrument described in §21.2 succeeds to Landlord’s interest in the Leased Property,
Tenant will pay to such holder all Rent subsequently payable under this Lease. Tenant shall, upon
request of anyone succeeding to the interest of Landlord, automatically become the tenant of, and
attorn to, such successor in interest without changing this Lease. The successor in interest will
not be bound by [i] any payment of Rent for more than one month in advance; [ii] any amendment or
modification of this Lease thereafter made without its consent as provided in this Lease; [iii] any
claim against Landlord arising prior to the date on which the successor succeeded to Landlord’s
interest; or [iv] any claim or offset of Rent against Landlord. Upon request by Landlord or such
successor in interest and without cost to Landlord or such successor in interest, Tenant will
execute, acknowledge and deliver an instrument or instruments confirming the attornment. If Tenant
fails or refuses to execute, acknowledge, and deliver any such instrument within 20 days after
written demand, then Landlord or such successor in interest will be entitled to execute,
acknowledge, and deliver any document on behalf of Tenant as Tenant’s attorney-in-fact. Tenant
hereby constitutes and irrevocably appoints Landlord, its successors and assigns, as Tenant’s
attorney-in-fact to execute, acknowledge, and deliver on behalf of Tenant any such document. This
power of attorney is coupled with an interest and is irrevocable.

     21.4 Estoppel Certificates. At the request of Landlord or any mortgagee or purchaser
of the Leased Property, Tenant shall execute, acknowledge, and deliver an estoppel certificate, in
recordable form, in favor of Landlord or any mortgagee or purchaser of the Leased

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Property certifying the following: [i] that the Lease is unmodified and in full force and effect, or if
there have been modifications that the same is in full force and effect as modified and stating the
modifications; [ii] the date to which Rent and other charges have been paid; [iii] whether Tenant
or Landlord is in default or whether there is any fact or condition which, with notice or lapse of time, or both, would constitute a default, and
specifying any existing default, if any; [iv] that Tenant has accepted and occupies the Leased
Property; [v] that Tenant has no defenses, set-offs, deductions, credits, or counterclaims against
Landlord, if that be the case, or specifying such that exist; and [vi] such other information as
may reasonably be requested by Landlord or any mortgagee or purchaser. Any purchaser or mortgagee
may rely on this estoppel certificate. If Tenant fails to deliver the estoppel certificates to
Landlord within 10 days after the request of Landlord, then Tenant shall be deemed to have
certified that [a] the Lease is in full force and effect and has not been modified, or that the
Lease has been modified as set forth in the certificate delivered to Tenant; [b] Tenant has not
prepaid any Rent or other charges except for the current month; [c] Tenant has accepted and
occupies the Leased Property; [d] neither Tenant nor Landlord is in default nor is there any fact
or condition which, with notice or lapse of time, or both, would constitute a default; and [e]
Tenant has no defenses, set-offs, deductions, credits, or counterclaims against Landlord. Tenant
hereby irrevocably appoints Landlord as Tenant’s attorney-in-fact to execute, acknowledge, and
deliver on Tenant’s behalf any estoppel certificate to which Tenant does not object within 10 days
after Landlord sends the certificate to Tenant. This power of attorney is coupled with an interest
and is irrevocable.

ARTICLE 22: REPRESENTATIONS AND WARRANTIES

     Tenant and Subtenant hereby make the following representations and warranties, as of the
Effective Date, to Landlord and acknowledge that Landlord is granting the Lease in reliance upon
such representations and warranties. Tenant’s and Subtenant’s representations and warranties shall
survive the Closing and, except to the extent made as of a specific date, shall continue in full
force and effect until the Secured Obligations have been performed in full.

     22.1 Organization and Good Standing. Tenant is a corporation, duly organized, validly
existing and in good standing under the laws of the Commonwealth of Pennsylvania. Subtenant is a
corporation, duly organized, validly existing and in good standing under the laws of the State of
Florida. Tenant and each Subtenant are qualified to do business in and are in good standing under
the laws of the State.

     22.2 Power and Authority. Tenant and Subtenant have the power and authority to
execute, deliver and perform this Lease. Tenant and Subtenant have taken all requisite action
necessary to authorize the execution, delivery and performance of their respective obligations
under this Lease.

     22.3 Enforceability. This Lease constitutes a legal, valid, and binding obligation of
Tenant and Subtenant, as applicable, enforceable in accordance with its terms.

     22.4 Government Authorizations. The Facility is in compliance with all Legal
Requirements. All Government Authorizations are in full force and effect. Except as otherwise
noted in Exhibit G, Tenant or the respective Subtenant holds all Government Authorizations
necessary for the operation of the Facility in accordance with the Facility Uses. No prior notice

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to or approval from any licensure authority is required in connection with the execution of this Lease.

     22.5 Financial Statements. Tenant has furnished Landlord with true, correct, and
complete copies of the Financial Statements. The Financial Statements fairly present the financial
position of Tenant and Guarantor as applicable, as of the respective dates and the results of
operations for the periods then ended in conformance with generally accepted accounting principles
applied on a basis consistent with prior periods. The Financial Statements and other information
furnished to Landlord are true, complete and correct and, as of the Effective Date, no material
adverse change has occurred since the furnishing of such statements and information. As of the
Effective Date, the Financial Statements and other information do not contain any untrue statement
or omission of a material fact and are not misleading in any material respect. Tenant and
Guarantor are solvent, and no bankruptcy, insolvency, or similar proceeding is pending or
contemplated by or, to the knowledge of Tenant, against Tenant or Guarantor.

     22.6 Condition of Facility. To the best of Tenant’s and Subtenant’s knowledge, all of
the mechanical and electrical systems, heating and air-conditioning systems, plumbing, water and
sewer systems, and all other items of mechanical equipment or appliances are in good working order,
condition and repair, are of sufficient size and capacity to service the Facility for the Facility
Uses and conform with all applicable ordinances and regulations, and with all building, zoning,
fire, safety, and other codes, laws and orders. The Improvements, including the roof and
foundation, are structurally sound and free from leaks and other defects.

     22.7 Compliance with Laws. To the best of Tenant’s and Subtenant’s knowledge, there
is no violation of, or noncompliance with, [i] any laws, orders, rules or regulations, ordinances
or codes of any kind or nature whatsoever relating to the Facility or the ownership or operation
thereof (including, without limitation, building, fire, health, occupational safety and health,
zoning and land use, planning and environmental laws, orders, rules and regulations); [ii] any
covenants, conditions, restrictions or agreements affecting or relating to the ownership, use or
occupancy of the Facility; or [iii] any order, writ, regulation or decree relating to any matter
referred to in [i] or [ii] above.

     22.8 No Litigation. As of the Effective Date and except as disclosed on Exhibit H,
[i] there are no actions or suits, or any proceedings or investigations by any governmental agency
or regulatory body pending against Tenant, Subtenant, Guarantor or, to the best of Tenant’s
knowledge without any independent investigation, the Facility; [ii] no HIPDB adverse action reports
have been issued to Tenant, Subtenant, Guarantor or the Facility; [iii] no one has received notice
of any threatened actions, suits, proceedings or investigations against Tenant, Subtenant,
Guarantor or, to the best of Tenant’s knowledge without any independent investigation, the Facility
at law or in equity, or before any governmental board, agency or authority which, if determined
adversely to Tenant, Subtenant or Guarantor, would materially and adversely affect the Facility or
title to the Facility (or any part thereof), the right to operate the Facility as presently
operated, or the financial condition of Tenant or Guarantor; [iv] there are no unsatisfied or
outstanding judgments against Tenant, Guarantor or, to the best of Tenant’s knowledge without any
independent investigation, the Facility; [v] there is no labor dispute materially and adversely affecting the operation or
business conducted by Tenant, Guarantor, or,

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to the best of Tenant’s knowledge without any independent investigation, the Facility; and [vi] Tenant does not have knowledge of any facts or
circumstances which might reasonably form the basis for any such action, suit, or proceeding.

     22.9 Consents. The execution, delivery and performance of this Lease will not require
any consent, approval, authorization, order, or declaration of, or any filing or registration with,
any court, any federal, state, or local governmental or regulatory authority, or any other person
or entity, the absence of which would materially impair the ability of Tenant or Subtenant to
operate the Facility for the Facility Uses except for the post-acquisition filing for licensure of
the Facility.

     22.10 No Violation. The execution, delivery and performance of this Lease [i] do not
and will not conflict with, and do not and will not result in a breach of Tenant’s or Subtenant’s
Organizational Documents; [ii] do not and will not conflict with, and do not and will not result in
a breach of, and do not and will not constitute a default under (or an event which, with or without
notice or lapse of time, or both, would constitute a default under), any of the terms, conditions
or provisions of any agreement or other instrument or obligation to which Tenant or Subtenant is a
party or by which its assets are bound; and [iii] do not and will not violate any order, writ,
injunction, decree, statute, rule or regulation applicable to Tenant, Subtenant or the Facility.

     22.11 Reports and Statements. All reports, statements, certificates and other data
furnished by or on behalf of Tenant or Guarantor to Landlord in connection with this Lease, and all
representations and warranties made herein or in any certificate or other instrument delivered in
connection herewith and therewith, are true and correct in all material respects and do not omit to
state any material fact or circumstance necessary to make the statements contained herein or
therein, in light of the circumstances under which they are made, not misleading as of the date of
such report, statement, certificate or other data. The copies of all agreements and instruments
submitted to Landlord, including, without limitation, all agreements relating to management of the
Facility, the Letter of Credit, and Tenant’s working capital are true, correct and complete copies
and include all amendments and modifications of such agreements.

     22.12 ERISA. All plans (as defined in §4021(a) of the Employee Retirement Income
Security Act of 1974, as amended or supplemented from time to time (“ERISA”)) for which Tenant or
Subtenant is an “employer” or a “substantial employer” (as defined in §§3(5) and 4001(a)(2) of
ERISA, respectively) are in compliance with ERISA and the regulations and published interpretations
thereunder. To the extent Tenant or Subtenant maintains a qualified defined benefit pension plan:
[i] there exists no accumulated funding deficiency; [ii] no reportable event and no prohibited
transaction has occurred; [iii] no lien has been filed or threatened to be filed by the Pension
Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA; and [iv]
Tenant and Subtenant have not been deemed to be a substantial employer.

     22.13 Chief Executive Office. Tenant and Subtenant each maintain its respective chief
executive office and its books and records at Tenant’s address set forth in the introductory paragraph of this Lease. Tenant and Subtenant do
not conduct any business or operations other than at Tenant’s chief executive office and at the
Facility.

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     22.14 Other Name or Entities. Except as disclosed herein, none of Tenant’s or
Subtenant’s business is conducted through any subsidiary, unincorporated association or other
entity and neither Tenant nor Subtenant have, within the six years preceding the date of this Lease
[i] changed its name, [ii] used any name other than the name stated at the beginning of this
agreement, or [iii] merged or consolidated with, or acquired any of the assets of, any corporation
or other business.

     22.15 Parties in Possession. Except as disclosed on Exhibit B and except for each
Subtenant, there are no parties in possession of any Leased Property or any portion thereof as
managers, lessees, tenants at sufferance, or trespassers.

     22.16 Access. Access to the Land is directly from a dedicated public right-of-way
without any easement. To the knowledge of Tenant and Subtenant, there is no fact or condition
which would result in the termination or reduction of the current access to and from the Land to
such right-of-way.

     22.17 Utilities. There are available at the Land gas, municipal water, and sanitary
sewer lines, storm sewers, electrical and telephone services in operating condition which are
adequate for the operation of the Facility at a reasonable cost. The Land has direct access to
utility lines located in a dedicated public right-of-way without any easement, except to the extent
that any such easement is in full force and effect and benefits the Land. As of the Effective
Date, there is no pending or, to the knowledge of Tenant or Subtenant, threatened governmental or
third party proceeding which would impair or result in the termination of such utility
availability.

     22.18 Condemnation and Assessments. As of the Effective Date, neither Tenant nor
Subtenant has received notice of, and there are no pending or, to the best of Tenant’s and
Subtenant’s knowledge, threatened, condemnation, assessment or similar proceedings affecting or
relating to the Facility, or any portion thereof, or any utilities, sewers, roadways or other
public improvements serving the Facility.

     22.19 Zoning. As of the Effective Date, [i] the use and operation of the Facility for
the Facility Uses is a permitted use under the applicable zoning code; [ii] except as disclosed on
Exhibit G hereto, no special use permits, conditional use permits, variances, or exceptions have
been granted or are needed for such use of the Facility; [iii] the Land is not located in any
special districts such as historical districts or overlay districts; and [iv] the Facility has been
constructed in accordance with and complies with all applicable zoning laws, including, but not
limited to, dimensional, parking, setback, screening, landscaping, sign and curb cut requirements.

     22.20 Pro Forma Statement. Tenant has delivered to Landlord a true, correct and
complete copy of the Pro Forma Statement. The Pro Forma Statement shows Tenant’s reasonable expectation of the most likely results of Facility
operations for the next three-year period.

     22.21 Environmental Matters. During the period of Tenant’s or Subtenant’s ownership
or possession of the Leased Property and, to the best of Tenant’s and Subtenant’s knowledge after
diligent inquiry, which knowledge is based solely on the environmental report(s) delivered to
Landlord, and except as may be disclosed in such report(s) for the period

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prior to Tenant’s and Subtenant’s ownership or possession of the Leased Property, [i] the Leased Property is in
compliance with all Environmental Laws; [ii] there were no releases or threatened releases of
Hazardous Materials on, from, or under the Leased Property, except in compliance with all
Environmental Laws; [iii] no Hazardous Materials have been, are or will be used, generated, stored,
or disposed of at the Leased Property, except in compliance with all Environmental Laws; [iv]
asbestos has not been and will not be used in the construction of any Improvements; [v] no permit
is or has been required from the Environmental Protection Agency or any similar agency or
department of any state or local government for the use or maintenance of any Improvements; [vi]
underground storage tanks on or under the Land, if any, have been and currently are being operated
in compliance with all applicable Environmental Laws; [vii] any closure, abandonment in place or
removal of an underground storage tank on or from the Land was performed in compliance with
applicable Environmental Laws and any such tank had no release contaminating the Leased Property
or, if there had been a release, the release was remediated in compliance with applicable
Environmental Laws to the satisfaction of regulatory authorities; [viii] no summons, citation or
inquiry has been made by any such environmental unit, body or agency or a third party demanding any
right of recovery for payment or reimbursement for costs incurred under CERCLA or any other
Environmental Laws and the Land is not subject to the lien of any such agency; and [ix] to the best
of Tenant’s and Subtenant’s knowledge, the environmental assessment of the Facility (and all
follow-up reports, supplements and amendments) that was delivered to Landlord by Tenant in
connection with the closing of this Lease is true, complete and accurate. “Disposal” and “release”
shall have the meanings set forth in CERCLA.

     22.22 Leases and Contracts. As of the Effective Date and except as disclosed on
Exhibit I, there are no leases or contracts (including, but not limited to, insurance contracts,
maintenance contracts, construction contracts, employee benefit plans, employment contracts,
equipment leases, security agreements, architect agreements, and management contracts) to which
Tenant, Subtenant or Guarantor is a party relating to any part of the ownership, operation,
possession, construction, management or administration of the Land or the Facility.

     22.23 No Default. As of the Effective Date, [i] there is no existing Event of Default
under this Lease; and [ii] no event has occurred which, with the giving of notice or the passage of
time, or both, would constitute or result in such an Event of Default.

     22.24 Tax Status. If Tenant or Subtenant is a partnership or limited liability
company, it is taxable as a partnership under the Internal Revenue Code and all applicable state
tax laws.

ARTICLE 23: FUTURE PROJECTS

     23.1 Project Submissions. Tenant, Guarantor and any Affiliate shall submit certain
future acquisition and development projects to Landlord as provided in the Commitment.

ARTICLE 24: SECURITY INTEREST

     24.1 Collateral. Tenant hereby grants, and each Subtenant hereby amends and restates
the grant, to each Landlord and HCRI (if not a Landlord) of a security interest in

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Tenant’s or Subtenant’s, as the case may be, right, title and interest in the following described property,
whether now owned or hereafter acquired by Tenant or any Subtenant (the “Collateral”), to secure
the payment and performance of the Secured Obligations:

          (a) All machinery, furniture, equipment, trade fixtures, appliances, inventory and all other
goods (as “equipment”, “inventory” and “goods” are defined for purposes of Article 9 (“Article 9”)
of the Uniform Commercial Code as adopted in the State) and any leasehold interest of Tenant or any
Subtenant in any of the foregoing, now or hereafter located in or on or used or usable in
connection with the Land, Improvements, or Fixtures and replacements, additions, and accessions
thereto, including, without limitation, those items which are to become fixtures or which are
building supplies and materials to be incorporated into an Improvement or Fixture.

          (b) All accounts, contract rights, general intangibles, instruments, documents, and chattel
paper [as “accounts”, “contract rights”, “general intangibles”, “instruments”, “documents”, and
“chattel paper”, are defined for purposes of Article 9] now or hereafter arising in connection with
the business located in or on or used or usable in connection with the Land, Improvements, or
Fixtures, and replacements, additions, and accessions thereto.

          (c) All franchises, permits, licenses, operating rights, certifications, approvals, consents,
authorizations and other general intangibles regarding the use, occupancy or operation of the
Improvements, or any part thereof, including, without limitation, certificates of need, state
health care facility licenses, and Medicare and Medicaid provider agreements, to the extent
permitted by law.

          (d) Unless expressly prohibited by the terms thereof, all contracts, agreements, contract
rights and materials relating to the design, construction, operation or management of the
Improvements, including, but not limited to, plans, specifications, drawings, blueprints, models,
mock-ups, brochures, flyers, advertising and promotional materials and mailing lists.

          (e) All subleases, occupancy agreements, license agreements and concession agreements, written
or unwritten, of any nature, covering all of the Leased Property or any part thereof, now or
hereafter entered into, and all right, title and interest of Tenant thereunder, including, without
limitation, those certain Subleases dated as of the Effective Date, by and between Tenant, as
Sublandlord, and each Subtenant, as Subtenant; and including, without limitation, Tenant’s right,
if any, to cash or securities deposited thereunder whether or not the same was deposited to secure performance by the subtenants, occupants, licensees and
concessionaires of their obligations thereunder, including the right to receive and collect the
rents, revenues, and other charges thereunder.

          (f) All ledger sheets, files, records, computer programs, tapes, other electronic data
processing materials, and other documentation relating to the preceding listed property or
otherwise used or usable in connection with the Land and Improvements, except to the extent any of
the foregoing is considered confidential or proprietary.

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          (g) The products and proceeds of the preceding listed property, including, without limitation,
cash and non-cash proceeds, proceeds of proceeds, and insurance proceeds.

     24.2 Additional Documents. At the request of Landlord, Tenant and each Subtenant
shall execute additional security agreements, financing statements, and such other documents as may
be reasonably requested by Landlord to maintain and perfect such security interest. Tenant and
each Subtenant hereby irrevocably appoint Landlord, its successors and assigns, as Tenant’s or
Subtenant’s attorney-in-fact to execute, acknowledge, deliver and file such documents on behalf of
Tenant or such Subtenant. This power of attorney is coupled with an interest and is irrevocable.

     24.3 Notice of Sale. With respect to any sale or other disposition of any of the
Collateral after the occurrence of an Event of Default, Landlord, Tenant and each Subtenant agree
that the giving of five days’ notice by Landlord, sent by overnight delivery, postage prepaid, to
Tenant’s or Subtenant’s notice address designating the time and place of any public sale or the
time after which any private sale or other intended disposition of such Collateral is to be made,
shall be deemed to be reasonable notice thereof and Tenant and each Subtenant waive any other
notice with respect thereto.

     24.4 Subordination of Receivables. Landlord shall subordinate its security interest
in the Receivables to the security interest of a working capital lender in accordance with an
agreement to be mutually agreed to by Landlord and working capital lender.

     24.5 Recharacterization. Landlord and Tenant intend this Lease to be a true lease.
However, if despite the parties’ intent, it is determined or adjudged by a court for any reason
that this Lease is not a true lease or if this Lease is recharacterized as a financing arrangement,
then this Lease shall be considered a secured financing agreement and Landlord’s title to the
Leased Property shall constitute a perfected first priority lien in Landlord’s favor on the Leased
Property to secure the payment and performance of all the Secured Obligations.

ARTICLE 25: MISCELLANEOUS

     25.1 Notices. Landlord, Tenant and Subtenant hereby agree that all notices, demands,
requests, and consents (hereinafter “notices”) required to be given pursuant to the terms of this
Lease shall be in writing, shall be addressed to the addresses set forth in the introductory
paragraph of this Lease, and shall be served by [i] personal delivery; [ii] certified mail, return receipt requested, postage prepaid; or [iii] nationally
recognized overnight courier. Notices to any Subtenant should be sent c/o Tenant at Tenant’s
address set forth in the introductory paragraph. All notices shall be deemed to be given upon the
earlier of actual receipt or three days after mailing, or one Business Day after deposit with the
overnight courier. Any notices meeting the requirements of this Section shall be effective,
regardless of whether or not actually received. Landlord or Tenant may change its notice address
at any time by giving the other party notice of such change.

     25.2 Advertisement of Leased Property. In the event the parties hereto have not
executed a renewal Lease within 120 days prior to the expiration of this Lease, or Tenant has

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not exercised its Option to Purchase, then Landlord or its agent shall have the right to enter the
Leased Property at all reasonable times for the purpose of exhibiting the Leased Property to others
and to place upon the Leased Property for and during the period commencing 120 days prior to the
expiration of this Lease, “for sale” or “for rent” notices or signs.

     25.3 Entire Agreement. This Lease contains the entire agreement between Landlord and
Tenant with respect to the subject matter hereof. No representations, warranties, and agreements
have been made by Landlord except as set forth in this Lease. No oral agreements or understandings
between Landlord and Tenant shall survive execution of this Lease.

     25.4 Severability. If any term or provision of this Lease is held or deemed by
Landlord to be invalid or unenforceable, such holding shall not affect the remainder of this Lease
and the same shall remain in full force and effect, unless such holding substantially deprives
Tenant of the use of the Leased Property or Landlord of the rents herein reserved, in which event
this Lease shall forthwith terminate as if by expiration of the Term.

     25.5 Captions and Headings. The captions and headings are inserted only as a matter
of convenience and for reference and in no way define, limit or describe the scope of this Lease or
the intent of any provision hereof.

     25.6 Governing Law. This Lease shall be governed by and construed in accordance with
the laws of the State of Ohio, except as to matters under which the laws of a State in which a
respective Facility is located, or under applicable procedural conflicts of laws rules, require the
application of laws of such other State, in which case the laws or conflicts of laws rules, as the
case may be, of such State shall govern to the extent required.

     25.7 Memorandum of Lease. Tenant shall not record this Lease. Tenant shall, however,
record a memorandum of lease reasonably approved by Landlord upon Landlord’s request.

     25.8 Waiver. No waiver by Landlord of any condition or covenant herein contained, or
of any breach of any such condition or covenant, shall be held or taken to be a waiver of any
subsequent breach of such covenant or condition, or to permit or excuse its continuance or any future breach thereof or of any condition or covenant, nor
shall the acceptance of Rent by Landlord at any time when Tenant or Subtenant is in default in the
performance or observance of any condition or covenant herein be construed as a waiver of such
default, or of Landlord’s right to terminate this Lease or exercise any other remedy granted herein
on account of such existing default.

     25.9 Binding Effect. This Lease will be binding upon and inure to the benefit of the
heirs, successors, personal representatives, and permitted assigns of Landlord, Tenant and
Subtenant.

     25.10 No Offer. Landlord’s submission of this Lease to Tenant is not an offer to
lease the Leased Property, or an agreement by Landlord to reserve the Leased Property for Tenant.
Landlord will not be bound to Tenant until Tenant has duly executed and delivered

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duplicate original leases to Landlord, and Landlord has duly executed and delivered one of these duplicate
original leases to Tenant.

     25.11 Modification. This Lease may only be modified by a writing signed by both
Landlord and Tenant. All references to this Lease, whether in this Lease or in any other document
or instrument, shall be deemed to incorporate all amendments, modifications and renewals of this
Lease, made after the date hereof. If Tenant requests Landlord’s consent to any change in
ownership, merger or consolidation of Tenant or Guarantor, any assumption of the Lease, or any
modification of the Lease, Tenant shall provide Landlord all relevant information and documents
sufficient to enable Landlord to evaluate the request. In connection with any such request, Tenant
shall pay to Landlord a fee in the amount of $2,500.00 and shall pay all of Landlord’s reasonable
attorney’s fees and expenses and other reasonable out-of-pocket expenses incurred in connection
with Landlord’s evaluation of Tenant’s request, the preparation of any documents and amendments,
the subsequent amendment of any documents between Landlord and its collateral pool lenders (if
applicable), and all related matters.

     25.12 Landlord’s Modification. Tenant acknowledges that Landlord may mortgage the
Leased Property or use the Leased Property as collateral for a collateralized mortgage obligations
or Real Estate Mortgage Investment Companies (REMICS). If any mortgage lender of Landlord desires
any modification of this Lease, Tenant agrees to consider such modification in good faith and to
execute an amendment of this Lease if Tenant finds such modification acceptable.

     25.13 No Merger. The surrender of this Lease by Tenant or the cancellation of this
Lease by agreement of Tenant and Landlord or the termination of this Lease on account of Tenant’s
default will not work a merger, and will, at Landlord’s option, terminate any subleases or operate
as an assignment to Landlord of any subleases. Landlord’s option under this paragraph will be
exercised by notice to Tenant and all known subtenants of the Leased Property.

     25.14 Laches. No delay or omission by either party hereto to exercise any right or
power accruing upon any noncompliance or default by the other party with respect to any of the terms hereof shall impair any such right or power or be construed
to be a waiver thereof.

     25.15 Limitation on Tenant’s Recourse. Tenant’s sole recourse against Landlord, and
any successor to the interest of Landlord in the Leased Property, is to the interest of Landlord,
and any such successor, in the Leased Property. Tenant will not have any right to satisfy any
judgment which it may have against Landlord, or any such successor, from any other assets of
Landlord, or any such successor. In this Section, the terms “Landlord” and “successor” include the
shareholders, venturers, and partners of “Landlord” and “successor” and the officers, directors,
and employees of the same. The provisions of this Section are not intended to limit Tenant’s right
to seek injunctive relief or specific performance.

     25.16 Construction of Lease. This Lease has been prepared by Landlord and its
professional advisors and reviewed by Tenant and its professional advisors. Landlord, Tenant, and
their advisors believe that this Lease is the product of all their efforts, that it expresses their
agreement, and agree that it shall not be interpreted in favor of either Landlord or Tenant or
against either Landlord or Tenant merely because of their efforts in preparing it.

- 61 -

 

     25.17 Counterparts. This Lease may be executed in multiple counterparts, each of
which shall be deemed an original hereof.

     25.18 Lease Guaranty. The payment of Rent and the performance of the Secured
Obligations arising under this Lease are guaranteed by Guarantor pursuant to a Lease Guaranty of
even date.

     25.19 Custody of Escrow Funds. Any funds paid to Landlord in escrow hereunder may be
held by Landlord or, at Landlord’s election, by a financial institution, the deposits or accounts
of which are insured or guaranteed by a federal or state agency. The funds shall not be deemed to
be held in trust, may be commingled with the general funds of Landlord or such other institution,
and shall not bear interest.

     25.20 Landlord’s Status as a REIT. Tenant acknowledges that Landlord (or a Landlord
Affiliate) has elected and may hereafter elect to be taxed as a real estate investment trust
(“REIT”) under the Internal Revenue Code.

     25.21 Exhibits. All of the exhibits referenced in this Lease are attached hereto and
incorporated herein.

     25.22 WAIVER OF JURY TRIAL. LANDLORD, TENANT AND SUBTENANT WAIVE TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHER ON ALL MATTERS ARISING
OUT OF THIS LEASE OR THE USE AND OCCUPANCY OF THE LEASED PROPERTY (EXCEPT CLAIMS FOR PERSONAL
INJURY OR PROPERTY DAMAGE). IF LANDLORD COMMENCES ANY SUMMARY PROCEEDING FOR NONPAYMENT OF RENT, TENANT AND SUBTENANT WILL NOT INTERPOSE, AND WAIVES THE RIGHT TO
INTERPOSE, ANY COUNTERCLAIM IN ANY SUCH PROCEEDING (EXCEPT FOR MANDATORY COUNTERCLAIMS).

     25.23 CONSENT TO JURISDICTION. TENANT AND SUBTENANT HEREBY IRREVOCABLY SUBMIT AND
CONSENT TO THE NONEXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT HAVING
JURISDICTION OVER LUCAS COUNTY, OHIO OR ANY COUNTY IN WHICH A FACILITY IS LOCATED FOR ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO [I] THE COMMITMENT; [II] THIS
LEASE; OR [III] ANY DOCUMENT EXECUTED BY TENANT OR SUBTENANT IN CONNECTION WITH THIS LEASE. TENANT
AND SUBTENANT HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT TENANT AND SUBTENANT MAY EFFECTIVELY
DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING.
TENANT AND SUBTENANT AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW.

- 62 -

 

     TENANT AND SUBTENANT AGREE NOT TO INSTITUTE ANY LEGAL ACTION OR PROCEEDING AGAINST LANDLORD OR
ANY DIRECTOR, OFFICER, EMPLOYEE, AGENT OR PROPERTY OF LANDLORD, CONCERNING ANY MATTER ARISING OUT
OF OR RELATING TO THE COMMITMENT, THIS LEASE OR ANY RELATED DOCUMENT IN ANY COURT OTHER THAN A
STATE OR FEDERAL COURT HAVING JURISDICTION OVER LUCAS COUNTY, OHIO.

     TENANT AND SUBTENANT HEREBY CONSENT TO SERVICE OF PROCESS BY LANDLORD IN ANY MANNER AND IN ANY
JURISDICTION PERMITTED BY LAW. NOTHING HEREIN SHALL AFFECT OR IMPAIR LANDLORD’S RIGHT TO SERVE
LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW, OR LANDLORD’S RIGHT TO BRING ANY ACTION OR PROCEEDING
AGAINST TENANT, SUBTENANT OR THE PROPERTY OF TENANT OR SUBTENANT IN THE COURTS OF ANY OTHER
JURISDICTION.

     25.24 Attorney’s Fees and Expenses. Tenant shall pay to Landlord all reasonable costs
and expenses incurred by Landlord in administering this Lease and the security for this Lease,
enforcing or preserving Landlord’s rights under this Lease and the security for this Lease, and in
all matters of collection, whether or not an Event of Default has actually occurred or has been
declared and thereafter cured, including, but not limited to, [a] reasonable attorney’s and
paralegal’s fees and disbursements; [b] the fees and expenses of any litigation, administrative,
bankruptcy, insolvency, receivership and any other similar proceeding; [c] court costs; [d] the
expenses of Landlord, its employees, agents, attorneys and witnesses in preparing for litigation,
administrative, bankruptcy, insolvency and other proceedings and for lodging, travel, and
attendance at meetings, hearings, depositions, and trials; and [e] consulting and witness fees and
expenses incurred by Landlord in connection with any litigation or other proceeding; provided, however, Landlord’s internal bookkeeping and routine
lease servicing costs are not payable by Tenant.

     25.25 Survival. The following provisions shall survive termination of the Lease:
Article 8 (Defaults and Remedies); Article 9 (Damage and Destruction); Article 10 (Condemnation);
§15.3.6 (Confidentiality); §15.9 (Transfer of License and Facility Operations); §15.10 (Bed
Operating Rights); §18.2 (Assignment or Sublease); Article 19 (Holdover and Surrender); §20.6
(Retention of Letter of Credit); Article 24 (Security Interest) and §25.25 (Survival).

     25.26 Time. Time is of the essence in the performance of this Lease.

     25.27 Subtenant. Each Subtenant has joined in the execution of this Lease to
acknowledge that Subtenant is subject to and bound by the terms of the Lease applicable to
Subtenant, including, without limitation, the confirmation of a prior grant of a security interest
under Article 24.

     25.28 Radon Gas. Radon is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present health risks to persons who are
exposed to it over time. Levels of radon that exceed federal and state guidelines have been

- 63 -

 

found in buildings in Florida. Additional information regarding radon and radon testing may be obtained
from your county health department.

     25.29 Warrants. Tenant has issued stock warrants to Landlord upon the terms and
conditions set forth therein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

- 64 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease or caused the same to be
executed by their respective duly authorized officers as of the date first set forth above.

	 	 	 	 	 	 	 	 	 
	Signed and acknowledged in the presence of:	 	HEALTH CARE REIT, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rita J. Rogge	 	By:	 	/s/ Erin C. Ibele
	 	 	 	 	 	 	 
	Print Name

	 	Rita J. Rogge	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature

	 	/s/ Oksana M. Ludd
	 	 	 	Title:
	 	VICE PRESIDENT AND CORPORATE SECRETARY
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Oksana M. Ludd	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	HCRI PENNSYLVANIA PROPERTIES, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rita J. Rogge	 	By:	 	/s/ Erin C. Ibele
	 	 	 	 	 	 	 
	Print Name

	 	Rita J. Rogge	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature

	 	/s/ Oksana M. Ludd
	 	 	 	Title:
	 	VICE PRESIDENT AND CORPORATE SECRETARY
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Oksana M. Ludd	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 23-2923146

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF CHESWICK, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 23-2937687

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF FORT MYERS, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 65-0795953

S-1

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF LAKELAND, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 59-3479292

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF NEW PORT RICHEY, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 65-0795949

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF VERO BEACH, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 65-0795951

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TANDEM HEALTH CARE OF WEST PALM BEACH, INC.
	 
	 	 	 	 	 	 	 	 
	Signature	 	/s/ Rosemary L. Corsetti	 	By:	 	/s/ Lawrence R. Deering
	 	 	 	 	 	 	 
	Print Name

	 	Rosemary L. Corsetti	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	Chairman and CEO
	Signature

	 	/s/ Sharon K. Mason	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	Sharon K. Mason	 	 	 	 	 	 
	 	 	 	 	Tax I.D. No.: 65-0795947

S-2

 

	 	 	 	 	 
	STATE OF OHIO

	 	)	 
	 

	 	) SS:

	COUNTY OF LUCAS

	 	)	 

     The
foregoing instrument was acknowledged before me this
30th day of January, 2002 by
ERIN C. IBELE, the U. PRES. & CORP. SECT of Health Care REIT, Inc., a Delaware
corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Oksana M. Ludd
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My Commission Expires:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	OKSANA M. LUDD, Attorney at Law
	 

	 	 	 	 	 	Notary Public — State of Ohio
	 

	 	 	 	 	 	My commission has no expiration date
	 

	 	 	 	 	 	Section 147.03 R.C.

	 	 	 	 	 
	STATE OF OHIO

	 	)	 
	 

	 	) SS:

	COUNTY OF LUCAS

	 	)	 

     The
foregoing instrument was acknowledged before me this
30th day of January, 2002 by
ERIN C. IBELE, the U. PRES. & CORP. SECT of HCRI Pennsylvania Properties, Inc., a
Pennsylvania corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Oksana M. Ludd
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My Commission Expires:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	OKSANA M. LUDD, Attorney at Law
	 

	 	 	 	 	 	Notary Public — State of Ohio
	 

	 	 	 	 	 	My commission has no expiration date
	 

	 	 	 	 	 	Section 147.03 R.C.

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chairman and CEO of Tandem Health Care, Inc., a
Pennsylvania corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	 
	 	 	 	[SEAL]
	 
	 	 	 	 	 	 
	My Commission Expires:

	 	4/1/04	 	 	 	 

S-3

 

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chairman and CEO of Tandem Health Care of Cheswick, Inc., a
Pennsylvania corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My
Commission Expires: 4/1/04

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chairman and CEO of Tandem Health Care of Fort Myers, Inc.,
a Florida corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My
Commission Expires: 4/1/04

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chairman and CEO of Tandem Health Care of Lakeland, Inc., a
Florida corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My
Commission Expires: 4/1/04

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

S-4

 

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chariman and CEO of Tandem Health Care of New Port Richey,
Inc., a Florida corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My
Commission Expires: 4/1/04

	 		 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chariman and CEO of Tandem Health Care of Vero Beach, Inc.,
a Florida corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My
Commission Expires: 4/1/04

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

S-5

 

	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	)	 
	 

	 	)	 
	COUNTY OF Allegheny

	 	)	 

     The foregoing instrument was acknowledged before me this 23 day of January, 2002 by
Lawrence R. Deering, the Chairman and CEO of Tandem Health Care of West Palm Beach,
Inc., a Florida corporation, on behalf of the corporation.

	 	 	 	 	 	 	 
	 	 	 	 	/s/ Karen M. Mohr
	 	 	 	 	 
	 	 	 	 	Notary Public
	 
	 	 	 	 	 	 
	My Commission Expires: 4/1/04

	 	 	 	 	 	 
	 

	 	 	 	[SEAL]
	 	Notarial Seal
	 

	 	 	 	 	 	Karen M. Mohr, Notary Public
	 

	 	 	 	 	 	Pittsburgh, Allegheny County
	 

	 	 	 	 	 	My Commission Expires Apr. 1, 2004
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Member, Pennsylvania Association of Notaries

THIS INSTRUMENT PREPARED BY:

Oksana M. Ludd, Esq.

Shumaker, Loop & Kendrick, LLP

1000 Jackson Street

Toledo, Ohio 43624

S-6

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