Document:

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                                                                    EXHIBIT 10.1

                           FIRST AMENDED AND RESTATED

                        AGREEMENT OF LIMITED PARTNERSHIP

                                       OF

                         MPT OPERATING PARTNERSHIP, L.P.

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                                TABLE OF CONTENTS

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ARTICLE I  DEFINED TERMS..........................................................................................1

ARTICLE II  FORMATION OF PARTNERSHIP..............................................................................8
         2.01       Continuation..................................................................................8
         2.02       Name, Office and Registered Agent.............................................................8
         2.03       Partners......................................................................................8
         2.04       Term and Dissolution..........................................................................8
         2.05       Filing of Certificate and Perfection of Limited Partnership...................................9
         2.06       Certificates Describing Partnership Units.....................................................9

ARTICLE III  BUSINESS OF THE PARTNERSHIP.........................................................................10

ARTICLE IV  CAPITAL CONTRIBUTIONS AND ACCOUNTS...................................................................10
         4.01       Capital Contributions........................................................................10
         4.02       Additional Capital Contributions and Issuances of Additional Partnership Interests...........10
         4.03       Additional Funding...........................................................................13
         4.04       Capital Accounts.............................................................................13
         4.05       Percentage Interests.........................................................................13
         4.06       No Interest on Contributions.................................................................13
         4.07       Return of Capital Contributions..............................................................14
         4.08       No Third Party Beneficiary...................................................................14

ARTICLE V  PROFITS AND LOSSES; DISTRIBUTIONS.....................................................................14
         5.01       Allocation of Profit and Loss................................................................14
         5.02       Distribution of Cash.........................................................................16
         5.03       REIT Distribution Requirements...............................................................17
         5.04       No Right to Distributions in Kind............................................................17
         5.05       Limitations on Return of Capital Contributions...............................................17
         5.06       Distributions Upon Liquidation...............................................................17
         5.07       Substantial Economic Effect..................................................................18

ARTICLE VI  RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER................................................18
         6.01       Management of the Partnership................................................................18
         6.02       Delegation of Authority......................................................................21
         6.03       Indemnification and Exculpation of Indemnitees...............................................21
         6.04       Liability of the General Partner.............................................................23
         6.05       Partnership Obligations......................................................................24
         6.06       Outside Activities...........................................................................24
         6.07       Employment or Retention of Affiliates........................................................24
         6.08       General Partner Activities...................................................................25
         6.09       Title to Partnership Assets..................................................................25
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<S>                                                                                                              <C>
         6.10       Redemption of General Partner Partnership Units..............................................25

ARTICLE VII  CHANGES IN THE COMPANY OR THE GENERAL PARTNER.......................................................25
         7.01       Transfer of the General Partner's Partnership Interest.......................................25
         7.02       Admission of a Substitute or Additional General Partner......................................27
         7.03       Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner..................28
         7.04       Removal of a General Partner.................................................................28

ARTICLE VIII  RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS.....................................................29
         8.01       Management of the Partnership................................................................29
         8.02       Power of Attorney............................................................................29
         8.03       Limitation on Liability of Limited Partners..................................................30
         8.04       Redemption Right.............................................................................30

ARTICLE IX  TRANSFERS OF PARTNERSHIP INTERESTS...................................................................32
         9.01       Purchase for Investment......................................................................32
         9.02       Restrictions on Transfer of Partnership Interests............................................32
         9.03       Admission of Substitute Limited Partner......................................................34
         9.04       Rights of Assignees of Partnership Interests.................................................35
         9.05       Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner................35
         9.06       Joint Ownership of Interests.................................................................35

ARTICLE X  BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS............................................................36
         10.01      Books and Records............................................................................36
         10.02      Custody of Partnership Funds; Bank Accounts..................................................36
         10.03      Fiscal and Taxable Year......................................................................36
         10.04      Annual Tax Information and Report............................................................36
         10.05      Tax Matters Partner; Tax Elections; Special Basis Adjustments................................36
         10.06      Reports to Limited Partners..................................................................37

ARTICLE XI  AMENDMENT OF AGREEMENT; MERGER.......................................................................37

ARTICLE XII  GENERAL PROVISIONS..................................................................................38
         12.01      Notices......................................................................................38
         12.02      Survival of Rights...........................................................................38
         12.03      Additional Documents.........................................................................38
         12.04      Severability.................................................................................38
         12.05      Entire Agreement.............................................................................38
         12.06      Pronouns and Plurals.........................................................................39
         12.07      Headings.....................................................................................39
         12.08      Counterparts.................................................................................39
         12.09      Governing Law................................................................................39
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EXHIBITS

EXHIBIT A - Partners, Capital Contributions and Percentage Interests

EXHIBIT B - Notice of Exercise of Redemption Right

EXHIBIT C - Certification of Non-Foreign Status

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                              AMENDED AND RESTATED

                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                         MPT OPERATING PARTNERSHIP, L.P.

         This Amended and Restated Agreement of Limited Partnership of MPT
Operating Partnership, L.P. is made and entered into as of the 29th day of
February, 2004 by and among MPT Operating Partnership, L.P. (the "Partnership"),
Medical Properties Trust, LLC, a Delaware limited liability company and
currently the sole general partner of the Partnership, and Medical Properties
Trust, Inc., a Maryland corporation (the "Company"), as well as the other
limited partners who from time to time execute this Agreement or counterparts
hereof as limited partners.

                                    RECITALS:

                  WHEREAS, the Partnership was formed as a limited partnership
under the laws of the State of Delaware, pursuant to a Certificate of Limited
Partnership filed with the Secretary of State of the State of Delaware effective
as of September 10, 2003 and an Agreement of Limited Partnership entered into as
of September 10, 2003;

                  WHEREAS, the parties desire to amend the Agreement of Limited
Partnership and restate it in its entirety as set forth in this Agreement.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants of the parties hereto, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Agreement of Limited Partnership shall be amended and restated as
follows:

                                   ARTICLE I

                                  DEFINED TERMS

         The following defined terms used in this Agreement shall have the
meanings specified below:

         "ACT" means the Delaware Revised Uniform Limited Partnership Act, as it
may be amended from time to time.

         "ADDITIONAL FUNDS" has the meaning set forth in Section 4.03 hereof.

         "ADDITIONAL SECURITIES" means any additional REIT Shares (other than
REIT Shares issued in connection with an exchange pursuant to Section 8.04
hereof) or rights, options,

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warrants or convertible or exchangeable securities containing the right to
subscribe for or purchase REIT Shares, as set forth in Section 4.02(a)(ii).

         "ADMINISTRATIVE EXPENSES" means (i) all administrative and operating
costs and expenses incurred by the Partnership, (ii) those administrative costs
and expenses of the General Partner or the Company, including any salaries or
other payments to directors, officers or employees of the General Partner or the
Company, and any accounting and legal expenses of the General Partner or the
Company, which expenses, the Partners have agreed, are expenses of the
Partnership and not the General Partner or the Company, and (iii) to the extent
not included in clauses (i) or (ii) above, REIT Expenses; provided, however,
that Administrative Expenses shall not include any administrative costs and
expenses incurred by the General Partner or the Company that are attributable to
Properties or partnership interests in a Subsidiary Partnership that are owned
by the General Partner or the Company or other than through its ownership
interest in the Partnership.

         "AFFILIATE" means, (i) any Person that, directly or indirectly,
controls or is controlled by or is under common control with such Person, (ii)
any other Person that owns, beneficially, directly or indirectly, 10% or more of
the outstanding capital stock, shares or equity interests of such Person, or
(iii) any officer, director, employee, partner, member, manager or trustee of
such Person or any Person controlling, controlled by or under common control
with such Person (excluding trustees and persons serving in similar capacities
who are not otherwise an Affiliate of such Person). For the purposes of this
definition, "control" (including the correlative meanings of the terms
"controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
through the ownership of voting securities or partnership interests or
otherwise.

         "AGREED VALUE" means the fair market value of a Partner's non-cash
Capital Contribution (net of assumed liabilities) as of the date of contribution
as agreed to by such Partner and the General Partner. The names and addresses of
the Partners, number of Partnership Units issued to each Partner, and the Agreed
Value of non-cash Capital Contributions as of the date of contribution is set
forth on Exhibit A.

         "AGREEMENT" means this First Amended and Restated Agreement of Limited
Partnership.

         "ARTICLES OF INCORPORATION" means the Articles of Incorporation of the
Company filed with the Maryland State Department of Assessments and Taxation, as
amended or restated from time to time.

         "BOARD OF DIRECTORS" means the Board of Directors of the Company.

         "CAPITAL ACCOUNT" has the meaning provided in Section 4.04 hereof.

         "CAPITAL CONTRIBUTION" means the total amount of cash, cash
equivalents, and the Agreed Value of any Property or other asset contributed or
agreed to be contributed, as the context requires, to the Partnership by each
Partner pursuant to the terms of the Agreement. Any

                                      -2-
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reference to the Capital Contribution of a Partner shall include the Capital
Contribution made by a predecessor holder of the Partnership Interest of such
Partner.

         "CASH AMOUNT" means an amount of cash per Partnership Unit equal to the
Value of the REIT Shares Amount on the date of receipt by the Partnership and
the Company of a Notice of Redemption.

         "CERTIFICATE" means any instrument or document that is required under
the laws of the State of Delaware, or any other jurisdiction in which the
Partnership conducts business, to be signed and sworn to by the Partners of the
Partnership (either by themselves or pursuant to the power-of-attorney granted
to the General Partner in Section 8.02 hereof) and filed for recording in the
appropriate public offices within the State of Delaware or such other
jurisdiction to perfect or maintain the Partnership as a limited partnership, to
effect the admission, withdrawal or substitution of any Partner of the
Partnership, or to protect the limited liability of the Limited Partners as
limited partners under the laws of the State of Delaware or such other
jurisdiction.

         "CODE" means the Internal Revenue Code of 1986, as amended, and as
hereafter amended from time to time. Reference to any particular provision of
the Code shall mean that provision in the Code at the date hereof and any
successor provision of the Code.

         "COMMISSION" means the U.S. Securities and Exchange Commission.

         "COMMON SHARE" means one share of common stock, $.01 par value, of the
Company.

         "COMPANY" means Medical Properties Trust, Inc., a Maryland corporation
electing to be taxed as a real estate investment trust under Sections 856
through 860 of the Code.

         "CONVERSION FACTOR" means 1.0, provided that in the event that the
Company (i) declares or pays a dividend on its outstanding REIT Shares in REIT
Shares or makes a distribution to all holders of its outstanding REIT Shares in
REIT Shares, (ii) subdivides its outstanding REIT Shares or (iii) combines its
outstanding REIT Shares into a smaller number of REIT Shares, the Conversion
Factor shall be adjusted by multiplying the Conversion Factor by a fraction, the
numerator of which shall be the number of REIT Shares issued and outstanding on
the record date for such dividend, distribution, subdivision or combination
(assuming for such purposes that such dividend, distribution, subdivision or
combination has occurred as of such time), and the denominator of which shall be
the actual number of REIT Shares (determined without the above assumption)
issued and outstanding on such date and, provided further, that in the event
that an entity other than an Affiliate of the Company shall become general
partner pursuant to any merger, consolidation or combination of the Company with
or into another entity (the "Successor Entity"), the Conversion Factor shall be
adjusted by multiplying the Conversion Factor by the number of shares of the
Successor Entity into which one REIT Share is converted pursuant to such merger,
consolidation or combination, determined as of the date of such merger,
consolidation or combination. Any adjustment to the Conversion Factor shall
become effective immediately after the effective date of such event retroactive
to the record date, if any, for such event; provided, however, that if the
Company and the Partnership receive a Notice of Redemption after the record
date, but prior to the effective date of such dividend, distribution,
subdivision or combination, the Conversion Factor shall be determined as if the
Company and

                                      -3-
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the Partnership had received the Notice of Redemption immediately prior to the
record date for such dividend, distribution, subdivision or combination.

         "DEFAULTING LIMITED PARTNER" has the meaning set forth in Section
5.02(c) hereof.

         "DISTRIBUTABLE AMOUNT" has the meaning set forth in Section 5.02(c)
hereof.

         "EVENT OF BANKRUPTCY" as to any Person means the filing of a petition
for relief as to such Person as debtor or bankrupt under the Bankruptcy Code of
1978 or similar provision of law of any jurisdiction (except if such petition is
contested by such Person and has been dismissed within 90 days); insolvency or
bankruptcy of such Person as finally determined by a court proceeding; filing by
such Person of a petition or application to accomplish the same or for the
appointment of a receiver or a trustee for such Person or a substantial part of
his assets; commencement of any proceedings relating to such Person as a debtor
under any other reorganization, arrangement, insolvency, adjustment of debt or
liquidation law of any jurisdiction, whether now in existence or hereinafter in
effect, either by such Person or by another, provided that if such proceeding is
commenced by another, such Person indicates his approval of such proceeding,
consents thereto or acquiesces therein, or such proceeding is contested by such
Person and has not been finally dismissed within 90 days.

         "GENERAL PARTNER" means Medical Properties Trust, LLC and any Person
who becomes a substitute or additional General Partner as provided herein, and
any of their successors as General Partner.

         "GENERAL PARTNERSHIP INTEREST" means a Partnership Interest held by the
General Partner that is a general partnership interest.

         "GENERAL PARTNER LOAN" has the meaning set forth in Section 5.02(c)
hereof.

         "INDEMNITEE" means (i) any Person made a party to a proceeding by
reason of its status as the Company, the General Partner or a director, officer
or employee of the Company, the Partnership or the General Partner, and (ii)
such other Persons (including Affiliates of the Company, General Partner or the
Partnership) as the General Partner may designate from time to time, in its sole
and absolute discretion.

         "LIMITED PARTNER" means any Person named as a Limited Partner on
Exhibit A attached hereto, and any Person who becomes a Substitute or Additional
Limited Partner, in such Person's capacity as a Limited Partner in the
Partnership.

         "LIMITED PARTNERSHIP INTEREST" means the ownership interest of a
Limited Partner in the Partnership at any particular time, including the right
of such Limited Partner to any and all benefits to which such Limited Partner
may be entitled as provided in this Agreement and in the Act, together with the
obligations of such Limited Partner to comply with all the provisions of this
Agreement and of such Act.

         "LOSS" has the meaning provided in Section 5.01(g) hereof.

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         "NOTICE OF REDEMPTION" means the Notice of Exercise of Redemption Right
substantially in the form attached as Exhibit B hereto.

         "NYSE" means the New York Stock Exchange.

         "OFFER" has the meaning set forth in Section 7.01(c) hereof.

         "ORIGINAL AGREEMENT" has the meaning set forth in the Recitals.

         "ORIGINAL LIMITED PARTNER" means James L. Francis.

         "PARTNER" means any General Partner or Limited Partner.

         "PARTNER NONRECOURSE DEBT MINIMUM GAIN" has the meaning set forth in
Regulations Section 1.704-2(i). A Partner's share of Partner Nonrecourse Debt
Minimum Gain shall be determined in accordance with Regulations Section
1.704-2(i)(5).

         "PARTNERSHIP INTEREST" means an ownership interest in the Partnership
held by either a Limited Partner or the General Partner and includes any and all
benefits to which the holder of such a Partnership Interest may be entitled as
provided in this Agreement, together with all obligations of such Person to
comply with the terms and provisions of this Agreement.

         "PARTNERSHIP MINIMUM GAIN" has the meaning set forth in Regulations
Section 1.704-2(d). In accordance with Regulations Section 1.704-2(d), the
amount of Partnership Minimum Gain is determined by first computing, for each
Partnership nonrecourse liability, any gain the Partnership would realize if it
disposed of the property subject to that liability for no consideration other
than full satisfaction of the liability, and then aggregating the separately
computed gains. A Partner's share of Partnership Minimum Gain shall be
determined in accordance with Regulations Section 1.704-2(g)(1).

         "PARTNERSHIP RECORD DATE" means the record date established by the
General Partner for the distribution of cash pursuant to Section 5.02 hereof,
which record date shall be the same as the record date established by the
Company for a distribution to its stockholders of some or all of its portion of
such distribution received through the General Partner.

         "PARTNERSHIP UNIT" means a fractional, undivided share of the
Partnership Interests of all Partners issued hereunder. The allocation of
Partnership Units among the Partners shall be as set forth on Exhibit A, as may
be amended from time to time.

         "PERCENTAGE INTEREST" means the percentage ownership interest in the
Partnership of each Partner, as determined by dividing the Partnership Units
owned by a Partner by the total number of Partnership Units then outstanding.
The Percentage Interest of each Partner shall be as set forth on Exhibit A, as
may be amended from time to time.

         "PERSON" means any individual, partnership, corporation, limited
liability company, joint venture, trust or other entity.

         "PROFIT" has the meaning provided in Section 5.01(g) hereof.

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<PAGE>

         "PROPERTY" means any property or other investment in which the
Partnership holds an ownership interest.

         "REDEMPTION AMOUNT" means either the Cash Amount or the REIT Shares
Amount, as selected by the Partnership or as directed by the General Partner
pursuant to Section 8.04(b) hereof.

         "REDEMPTION RIGHT" has the meaning provided in Section 8.04(a) hereof.

         "REDEEMING LIMITED PARTNER" has the meaning provided in Section 8.04(a)
hereof.

         "REGULATIONS" means the Federal Income Tax Regulations issued under the
Code, as amended and as hereafter amended from time to time. Reference to any
particular provision of the Regulations shall mean that provision of the
Regulations on the date hereof and any successor provision of the Regulations.

         "REIT" means a real estate investment trust under Sections 856 through
860 of the Code.

         "REIT EXPENSES" means (i) costs and expenses relating to the formation
and continuity of existence and operation of the Company and any Subsidiaries
thereof (which Subsidiaries shall, for purposes hereof, be included within the
definition of Company), including taxes, fees and assessments associated
therewith, any and all costs, expenses or fees payable to any director, officer
or employee of the Company, (ii) costs and expenses relating to any public
offering and registration, or private offering, of securities by the Company and
all statements, reports, fees and expenses incidental thereto, including,
without limitation, underwriting discounts and selling commissions applicable to
any such offering of securities, and any costs and expenses associated with any
claims made by any holders of such securities or any underwriters or placement
agents thereof, (iii) costs and expenses associated with any repurchase of any
securities by the Company, (iv) costs and expenses associated with the
preparation and filing of any periodic or other reports and communications by
the Company under federal, state or local laws or regulations, including filings
with the Commission, (v) costs and expenses associated with compliance by the
Company with laws, rules and regulations promulgated by any regulatory body,
including the Commission and any securities exchange, (vi) costs and expenses
associated with any 401(k) plan, incentive plan, bonus plan or other plan
providing for compensation for the employees of the Company, (vii) costs and
expenses incurred by the Company relating to any issuing or redemption of
Partnership Interests and (viii) all other operating or administrative costs of
the Company or any subsidiary, including the General Partner, incurred in the
ordinary course of its business on behalf of or in connection with the
Partnership.

         "REIT SHARE" means a Common Share of the Company (or Successor Entity,
as the case may be).

         "REIT SHARES AMOUNT" means a number of REIT Shares equal to the product
of the number of Partnership Units offered for redemption by a Redeeming Limited
Partner, multiplied by the Conversion Factor as adjusted to and including the
Specified Redemption Date; provided that in the event the Company issues to all
holders of REIT Shares rights, options, warrants or convertible or exchangeable
securities entitling the stockholders to subscribe for or purchase

                                      -6-
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REIT Shares, or any other securities or property (collectively, the "rights"),
and the rights have not expired at the Specified Redemption Date, then the REIT
Shares Amount shall also include the rights issuable to a holder of the REIT
Shares Amount on the record date fixed for purposes of determining the holders
of REIT Shares entitled to rights.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SERVICE" means the Internal Revenue Service.

         "SPECIFIED REDEMPTION DATE" means the first business day of the month
that is at least 60 calendar days after the receipt by the Partnership of a
Notice of Redemption.

         "SUBSIDIARY" means, with respect to any Person, any corporation,
partnership, limited liability company or other entity of which a majority of
(i) the voting power of the voting equity securities or (ii) the outstanding
equity interests is owned, directly or indirectly, by such Person.

         "SUBSIDIARY PARTNERSHIP" means any partnership or limited liability
company in which the Company, a Subsidiary of the Company or the Partnership
owns a partnership interest.

         "SUBSTITUTE LIMITED PARTNER" means any Person admitted to the
Partnership as a Limited Partner pursuant to Section 9.03 hereof.

         "SUCCESSOR ENTITY" has the meaning provided in the definition of
"Conversion Factor" contained herein.

         "SURVIVING GENERAL PARTNER" has the meaning set forth in Section
7.01(d) hereof.

         "TRADING DAY" means a day on which the principal national securities
exchange on which a security is listed or admitted to trading is open for the
transaction of business or, if a security is not listed or admitted to trading
on any national securities exchange, shall mean any day other than a Saturday, a
Sunday or a day on which banking institutions in the State of New York are
authorized or obligated by law or executive order to close.

         "TRANSACTION" has the meaning set forth in Section 7.01(c) hereof.

         "TRANSFER" has the meaning set forth in Section 9.02(a) hereof.

         "VALUE" means, with respect to any security, the average of the daily
market price of such security for the ten consecutive Trading Days immediately
preceding the date of such valuation. The market price for each such Trading Day
shall be: (i) if the security is listed or admitted to trading on the NYSE or
any securities exchange, the last reported sale price, regular way, on such day,
or if no such sale takes place on such day, the average of the closing bid and
asked prices, regular way, on such day, (ii) if the security is not listed or
admitted to trading on the NYSE or any securities exchange, the last reported
sale price on such day or, if no sale takes place on such day, the average of
the closing bid and asked prices on such day, as reported by a reliable
quotation source designated by the General Partner, or (iii) if the security is
not listed or admitted to trading on the NYSE or on any securities exchange and
no such last reported sale price or closing bid and asked prices are available,
the average of the reported high bid and low

                                      -7-
<PAGE>

asked prices on such day, as reported by a reliable quotation source designated
by the General Partner, or if there shall be no bid and asked prices on such
day, the average of the high bid and low asked prices, as so reported, on the
most recent day (not more than ten days prior to the date in question) for which
prices have been so reported; provided that if there are no bid and asked prices
reported during the ten days prior to the date in question, the value of the
security shall be determined by the General Partner acting in good faith on the
basis of such quotations and other information as it considers, in its
reasonable judgment, appropriate. In the event the security includes any
additional rights, then the value of such rights shall be determined by the
General Partner acting in good faith on the basis of such quotations and other
information as it considers, in its reasonable judgment, appropriate.

         "WITHHELD AMOUNT" has the meaning set forth in Section 5.02(c) hereof.

                                   ARTICLE II

                            FORMATION OF PARTNERSHIP

         2.01 CONTINUATION. The Partners hereby agree to continue the
Partnership pursuant to the Act and upon the terms and conditions set forth in
this Agreement.

         2.02 NAME, OFFICE AND REGISTERED AGENT. The name of the Partnership is
MPT Operating Partnership, L.P. The specified office and place of business of
the Partnership shall be 1000 Urban Center Drive, Suite 501, Birmingham, Alabama
35242. The General Partner may at any time change the location of such office,
provided the General Partner gives notice to the Partners of any such change.
The name of the Partnership's registered agent is National Registered Agents,
Inc. whose business address is 9 East Loocheman Street, Suite 1B, Dover,
Delaware 19901. The sole duty of the registered agent as such is to forward to
the Partnership any notice that is served on it as registered agent.

         2.03 PARTNERS.

                  (a) The General Partner of the Partnership is Medical
Properties Trust, LLC, a Delaware limited liability company. Its principal place
of business is the same as that of the Partnership.

                  (b) The Limited Partners are those Persons identified as
Limited Partners on Exhibit A hereto, as amended from time to time.

         2.04 TERM AND DISSOLUTION.

                  (a) The Partnership's existence shall be perpetual, except
that the Partnership shall be dissolved upon the first to occur of any of the
following events:

                           (i) The occurrence of an Event of Bankruptcy as to
                  the General Partner or the dissolution, death, removal or
                  withdrawal of the General Partner unless the business of the
                  Partnership is continued pursuant to Section 7.03(b) hereof;
                  provided that if the General Partner is on the date of such
                  occurrence a partnership, the dissolution of the General
                  Partner as a result of the dissolution, death, withdrawal,
                  removal or Event of

                                      -8-
<PAGE>

                  Bankruptcy of a partner in such partnership shall not be an
                  event of dissolution of the Partnership if the business of the
                  General Partner is continued by the remaining partner or
                  partners, either alone or with additional partners, and the
                  General Partner and such partners comply with any other
                  applicable requirements of this Agreement;

                           (ii) The passage of 90 days after the sale or other
                  disposition of all or substantially all of the assets of the
                  Partnership (provided that if the Partnership receives an
                  installment obligation as consideration for such sale or other
                  disposition, the Partnership shall continue, unless sooner
                  dissolved under the provisions of this Agreement, until such
                  time as such note or notes are paid in full); or

                           (iii) The election by the General Partner that the
                  Partnership should be dissolved.

                  (b) Upon dissolution of the Partnership (unless the business
of the Partnership is continued pursuant to Section 7.03(b) hereof), the General
Partner (or its trustee, receiver, successor or legal representative) shall
amend or cancel the Certificate and liquidate the Partnership's assets and apply
and distribute the proceeds thereof in accordance with Section 5.06 hereof.
Notwithstanding the foregoing, [the liquidating General Partner] may either (i)
defer liquidation of, or withhold from distribution for a reasonable time, any
assets of the Partnership (including those necessary to satisfy the
Partnership's debts and obligations), or (ii) distribute the assets to the
Partners in kind.

         2.05 FILING OF CERTIFICATE AND PERFECTION OF LIMITED PARTNERSHIP. The
General Partner shall execute, acknowledge, record and file at the expense of
the Partnership the Certificate and any and all amendments thereto and all
requisite fictitious name statements and notices in such places and
jurisdictions as may be necessary to cause the Partnership to be treated as a
limited partnership under, and otherwise to comply with, the laws of each state
or other jurisdiction in which the Partnership conducts business.

         2.06 CERTIFICATES DESCRIBING PARTNERSHIP UNITS. At the request of a
Limited Partner, the General Partner, at its option, may issue a certificate
summarizing the terms of such Limited Partner's interest in the Partnership,
including the number of Partnership Units owned and the Percentage Interest
represented by such Partnership Units as of the date of such certificate. Any
such certificate (i) shall be in form and substance as approved by the General
Partner, (ii) shall not be negotiable and (iii) shall bear a legend to the
following effect:

                  This certificate is not negotiable. The Partnership Units
                  represented by this certificate are governed by and
                  transferable only in accordance with the provisions of the
                  Agreement of Limited Partnership of MPT Operating Partnership,
                  L.P., as amended from time to time.

                                      -9-
<PAGE>

                                  ARTICLE III

                           BUSINESS OF THE PARTNERSHIP

         The purpose and nature of the business to be conducted by the
Partnership is (i) to conduct any business that may be lawfully conducted by a
limited partnership organized pursuant to the Act, provided, however, that such
business shall be limited to and conducted in such a manner as to permit the
Company at all times to qualify as a REIT, unless the Company otherwise ceases
to qualify as a REIT, (ii) to enter into any partnership, joint venture or other
similar arrangement to engage in any of the foregoing or the ownership of
interests in any entity engaged in any of the foregoing and (iii) to do anything
necessary or incidental to the foregoing. In connection with the foregoing, and
without limiting the Company's right in its sole and absolute discretion to
cease qualifying as a REIT, the Partners acknowledge that the Company's current
status as a REIT and the avoidance of income and excise taxes on the Company
inures to the benefit of all the Partners and not solely to the Company.
Notwithstanding the foregoing, the Limited Partners agree that the Company may
terminate its status as a REIT under the Code at any time. The General Partner
shall also be empowered to do any and all acts and things necessary or prudent
to ensure that the Partnership will not be classified as a "publicly traded
partnership" taxable as a corporation for purposes of Section 7704 of the Code.

                                   ARTICLE IV

                       CAPITAL CONTRIBUTIONS AND ACCOUNTS

         4.01 CAPITAL CONTRIBUTIONS. The General Partner and the Limited
Partners have made capital contributions to the Partnership in exchange for the
Partnership Interests set forth opposite their names on Exhibit A, as amended
from time to time.

         4.02 ADDITIONAL CAPITAL CONTRIBUTIONS AND ISSUANCES OF ADDITIONAL
PARTNERSHIP INTERESTS. Except as provided in this Section 4.02 or in Section
4.03, the Partners shall have no right or obligation to make any additional
Capital Contributions or loans to the Partnership. The General Partner and/or
the Company may contribute additional capital to the Partnership, from time to
time, and receive additional Partnership Interests in respect thereof, in the
manner contemplated in this Section 4.02.

                  (a) Issuances of Additional Partnership Interests.

                        (i) General. The General Partner is hereby authorized to
         cause the Partnership to issue such additional Partnership Interests in
         the form of Partnership Units for any Partnership purpose at any time
         or from time to time to the Partners (including the General Partner and
         the Company) or to other Persons for such consideration and on such
         terms and conditions as shall be established by the General Partner in
         its sole and absolute discretion, all without the approval of any
         Limited Partners. The General Partner's determination that
         consideration is adequate shall be conclusive insofar as the adequacy
         of consideration relates to whether the Partnership Interests are
         validly issued and fully paid. Any additional Partnership Interests
         issued thereby may be issued in one or more classes, or one or more
         series of any of such classes, with such designations,

                                      -10-
<PAGE>

         preferences and relative, participating, optional or other special
         rights, powers and duties, including rights, powers and duties senior
         to Limited Partnership Interests, all as shall be determined by the
         General Partner in its sole and absolute discretion and without the
         approval of any Limited Partner, subject to Delaware law, including,
         without limitation, (i) the allocations of items of Partnership income,
         gain, loss, deduction and credit to each such class or series of
         Partnership Interests; (ii) the right of each such class or series of
         Partnership Interests to share in Partnership distributions; and (iii)
         the rights of each such class or series of Partnership Interests upon
         dissolution and liquidation of the Partnership; provided, however, that
         no additional Partnership Interests shall be issued to the General
         Partner or the Company (or any direct or indirect wholly-owned
         Subsidiary of the General Partner or the Company) unless:

                              (1) (A) the additional Partnership Interests are
                  issued in connection with an issuance of REIT Shares of the
                  Company or other interests in the Company, which shares or
                  interests have designations, preferences and other rights, all
                  such that the economic interests are substantially similar to
                  the designations, preferences and other rights of the
                  additional Partnership Interests issued to the General Partner
                  or the Company (or any direct or indirect wholly-owned
                  Subsidiary of the General Partner or the Company) by the
                  Partnership in accordance with this Section 4.02 and (B) the
                  General Partner or the Company (or any direct or indirect
                  wholly-owned Subsidiary of the General Partner or the Company)
                  shall make a Capital Contribution to the Partnership in an
                  amount equal to the cash consideration received by the General
                  Partner or the Company from the issuance of such shares of
                  stock of or other interests in the General Partner or the
                  Company;

                              (2) the additional Partnership Interests are
                  issued in exchange for property owned by the General Partner
                  or the Company (or any direct or indirect wholly-owned
                  Subsidiary of the General Partner or the Company) with a fair
                  market value, as determined by the General Partner, in good
                  faith, equal to the value of the Partnership Interests; or

                              (3) the additional Partnership Interests are
                  issued to all Partners in proportion to their respective
                  Percentage Interests.

         Without limiting the foregoing, the General Partner is expressly
         authorized (other than in the case of an issuance under clause 2 above)
         to cause the Partnership to issue Partnership Units for less than fair
         market value, so long as the General Partner concludes in good faith
         that such issuance is in the best interests of the General Partner and
         the Partnership.

                        (ii) Upon Issuance of Additional Securities. The Company
         shall not issue any additional REIT Shares (other than REIT Shares
         issued in connection with an exchange pursuant to Section 8.04 hereof)
         or rights, options, warrants or convertible or exchangeable securities
         containing the right to subscribe for or purchase REIT Shares
         (collectively, "Additional Securities") other than to all holders of
         REIT Shares, unless (A) the General Partner shall cause the Partnership
         to issue to the Company or the General Partner Partnership Interests or
         rights, options, warrants or convertible or

                                      -11-
<PAGE>

         exchangeable securities of the Partnership having designations,
         preferences and other rights, all such that the economic interests are
         substantially similar to those of the Additional Securities, and (B)
         the Company contributes the proceeds from the issuance of such
         Additional Securities and from any exercise of rights contained in such
         Additional Securities to the Partnership; provided, however, that the
         Company is allowed to issue Additional Securities in connection with an
         acquisition of a property to be held directly by the Company, but if
         and only if, such direct acquisition and issuance of Additional
         Securities have been approved and determined to be in the best
         interests of the Company and the Partnership by a majority of the Board
         of Directors. Without limiting the foregoing, the Company is expressly
         authorized to issue Additional Securities for less than fair market
         value, and to cause the Partnership to issue to the Company or the
         General Partner corresponding Partnership Interests, so long as (x) the
         General Partner concludes in good faith that such issuance is in the
         best interests of the General Partner and the Partnership and (y) the
         Company contributes all proceeds from such issuance to the Partnership,
         including without limitation, the issuance of REIT Shares and
         corresponding Partnership Units pursuant to a share purchase plan
         providing for purchases of REIT Shares at a discount from fair market
         value or employee stock options that have an exercise price that is
         less than the fair market value of the REIT Shares, either at the time
         of issuance or at the time of exercise, or restricted or other stock
         awards. For example, in the event the Company issues REIT Shares for a
         cash purchase price and the Company contributes all of the proceeds of
         such issuance to the Partnership as required hereunder, the Company
         shall be issued a number of additional Partnership Units equal to the
         product of (A) the number of such REIT Shares issued by the Company,
         the proceeds of which were so contributed, multiplied by (B) a
         fraction, the numerator of which is 100%, and the denominator of which
         is the Conversion Factor in effect on the date of such contribution.

                (b) Certain Contributions of Proceeds of Issuance of REIT
Shares. In connection with any and all issuances of REIT Shares, the Company or
the General Partner shall make Capital Contributions to the Partnership of the
proceeds therefrom, provided that if the proceeds actually received and
contributed by the Company are less than the gross proceeds of such issuance as
a result of any underwriter's discount (or other expenses paid or incurred in
connection with such issuance, which shall be REIT Expenses hereunder), then the
Company or the General Partner shall make a Capital Contribution of such net
proceeds to the Partnership but shall receive additional Partnership Units with
a value equal to the aggregate amount of the gross proceeds of such issuance
pursuant to Section 4.02(a) hereof. Upon any such Capital Contribution by the
Company, the Company's or the General Partner's Capital Account shall be
increased pursuant to Section 4.04 hereof by the amount of the gross proceeds of
the issuance.

                (c) If the Company shall repurchase shares of any class of the
Company's capital stock, all costs incurred in connection with such repurchase
shall be reimbursed to the Company by the Partnership pursuant to Section 6.05
hereof and the General Partner shall cause the Partnership to redeem an
equivalent number of Partnership Interests of the appropriate class held by the
Company or the General Partner (which, in the case of Common Shares, shall be a
number equal to the quotient of the number of such Common Shares divided by the
Conversion Factor) in the manner provided in Section 6.10.

                                      -12-
<PAGE>

         4.03 ADDITIONAL FUNDING. If the General Partner determines that it is
in the best interests of the Partnership to provide for additional Partnership
funds ("Additional Funds") for any Partnership purpose, the General Partner may
(i) cause the Partnership to obtain such funds from outside borrowings, or (ii)
elect to have the General Partner, the Company or any of their Affiliates
provide such Additional Funds to the Partnership through loans or otherwise.
Subject to the provisions of Section 6.05, no person shall have any preemptive,
preferential or similar right or rights to subscribe for or acquire any
Partnership Interests except as set forth in this Article.

         4.04 CAPITAL ACCOUNTS. A separate capital account (a "Capital Account")
shall be established and maintained for each Partner in accordance with
Regulations Section 1.704-1(b)(2)(iv). If (i) a new or existing Partner acquires
an additional Partnership Interest in exchange for more than a de minimis
Capital Contribution or for services, (ii) the Partnership distributes to a
Partner more than a de minimis amount of Partnership property as consideration
for a Partnership Interest or (iii) the Partnership is liquidated within the
meaning of Regulation Section 1.704-1(b)(2)(ii)(g), the General Partner shall
revalue the property of the Partnership to its fair market value (as determined
by the General Partner, in its sole and absolute discretion, and taking into
account Section 7701(g) of the Code) in accordance with Regulations Section
1.704-1(b)(2)(iv)(f). When the Partnership's property is revalued by the General
Partner, the Capital Accounts of the Partners shall be adjusted in accordance
with Regulations Sections 1.704-1(b)(2)(iv)(f) and (g), which generally require
such Capital Accounts to be adjusted to reflect the manner in which the
unrealized gain or loss inherent in such property (that has not been reflected
in the Capital Accounts previously) would be allocated among the Partners
pursuant to Section 5.01 if there were a taxable disposition of such property
for its fair market value (as determined by the General Partner, in its sole and
absolute discretion, and taking into account Section 7701(g) of the Code) on the
date of the revaluation.

         4.05 PERCENTAGE INTERESTS. If the number of outstanding Partnership
Units increases or decreases during a taxable year, each Partner's Percentage
Interest shall be adjusted by the General Partner effective as of the effective
date of each such increase or decrease to a percentage equal to the number of
Partnership Units held by such Partner divided by the aggregate number of
Partnership Units outstanding after giving effect to such increase or decrease.
If the Partners' Percentage Interests are adjusted pursuant to this Section
4.05, the Profits and Losses for the taxable year in which the adjustment occurs
shall be allocated between the part of the year ending on the day when the
Partnership's property is revalued by the General Partner and the part of the
year beginning on the following day either (i) as if the taxable year had ended
on the date of the adjustment or (ii) based on the number of days in each part.
The General Partner, in its sole and absolute discretion, shall determine which
method shall be used to allocate Profits and Losses for the taxable year in
which the adjustment occurs. The allocation of Profits and Losses for the
earlier part of the year shall be based on the Percentage Interests before
adjustment, and the allocation of Profits and Losses for the later part shall be
based on the adjusted Percentage Interests.

         4.06 NO INTEREST ON CONTRIBUTIONS. No Partner shall be entitled to
interest on its Capital Contribution.

                                      -13-
<PAGE>

         4.07 RETURN OF CAPITAL CONTRIBUTIONS. No Partner shall be entitled to
withdraw any part of its Capital Contribution or its Capital Account or to
receive any distribution from the Partnership, except as specifically provided
in this Agreement. Except as otherwise provided herein, there shall be no
obligation to return to any Partner or withdrawn Partner any part of such
Partner's Capital Contribution for so long as the Partnership continues in
existence.

         4.08 NO THIRD PARTY BENEFICIARY. No creditor or other third party
having dealings with the Partnership shall have the right to enforce the right
or obligation of any Partner to make Capital Contributions or loans or to pursue
any other right or remedy hereunder or at law or in equity, it being understood
and agreed that the provisions of this Agreement shall be solely for the benefit
of, and may be enforced solely by, the parties hereto and their respective
successors and assigns. None of the rights or obligations of the Partners herein
set forth to make Capital Contributions or loans to the Partnership shall be
deemed an asset of the Partnership for any purpose by any creditor or other
third party, nor may such rights or obligations be sold, transferred or assigned
by the Partnership or pledged or encumbered by the Partnership to secure any
debt or other obligation of the Partnership or of any of the Partners. In
addition, it is the intent of the parties hereto that no distribution to any
Limited Partner shall be deemed a return of money or other property in violation
of the Act. However, if any court of competent jurisdiction holds that,
notwithstanding the provisions of this Agreement, any Limited Partner is
obligated to return such money or property, such obligation shall be the
obligation of such Limited Partner and not of the General Partner. Without
limiting the generality of the foregoing, a deficit Capital Account of a Partner
shall not be deemed to be a liability of such Partner nor an asset or property
of the Partnership.

                                   ARTICLE V

                        PROFITS AND LOSSES; DISTRIBUTIONS

         5.01 ALLOCATION OF PROFIT AND LOSS.

                  (a) Profit. Profit of the Partnership for each taxable year of
the Partnership shall be allocated to the Partners in accordance with their
respective Percentage Interests.

                  (b) Loss. Loss of the Partnership for each taxable year of the
Partnership shall be allocated to the Partners in accordance with their
respective Percentage Interests.

                  (c) Minimum Gain Chargeback. Notwithstanding any provision to
the contrary, (i) any expense of the Partnership that is a "nonrecourse
deduction" within the meaning of Regulations Section 1.704-2(b)(1) shall be
allocated in accordance with the Partners' respective Percentage Interests, (ii)
any expense of the Partnership that is a "partner nonrecourse deduction" within
the meaning of Regulations Section 1.704-2(i)(2) shall be allocated to the
Partner that bears the "economic risk of loss" of such deduction in accordance
with Regulations Section 1.704-2(i)(1), (iii) if there is a net decrease in
Partnership Minimum Gain within the meaning of Regulations Section 1.704-2(f)(1)
for any Partnership taxable year, then, subject to the exceptions set forth in
Regulations Section 1.704-2(f)(2),(3), (4) and (5), items of gain and income
shall be allocated among the Partners in accordance with Regulations Section
1.704-2(f) and the ordering rules contained in Regulations Section 1.704-2(j),
and (iv) if there is a net

                                      -14-
<PAGE>

decrease in Partner Nonrecourse Debt Minimum Gain within the meaning of
Regulations Section 1.704-2(i)(4) for any Partnership taxable year, then,
subject to the exceptions set forth in Regulations Section 1.704(2)(g), items of
gain and income shall be allocated among the Partners in accordance with
Regulations Section 1.704-2(i)(4) and the ordering rules contained in
Regulations Section 1.704-2(j). A Partner's "interest in partnership profits"
for purposes of determining its share of the nonrecourse liabilities of the
Partnership within the meaning of Regulations Section 1.752-3(a)(3) shall be
such Partner's Percentage Interest.

                (d) Qualified Income Offset. If a Partner receives in any
taxable year an adjustment, allocation or distribution described in
subparagraphs (4), (5) or (6) of Regulations Section 1.704-1(b)(2)(ii)(d) that
causes or increases a deficit balance in such Partner's Capital Account that
exceeds the sum of such Partner's shares of Partnership Minimum Gain and Partner
Nonrecourse Debt Minimum Gain, as determined in accordance with Regulations
Sections 1.704-2(g) and 1.704-2(i), such Partner shall be allocated specially
for such taxable year (and, if necessary, later taxable years) items of income
and gain in an amount and manner sufficient to eliminate such deficit Capital
Account balance as quickly as possible as provided in Regulations Section
1.704-1(b)(2)(ii)(d). After the occurrence of an allocation of income or gain to
a Partner in accordance with this Section 5.01(d), to the extent permitted by
Regulations Section 1.704-1(b), items of expense or loss shall be allocated to
such Partner in an amount necessary to offset the income or gain previously
allocated to such Partner under this Section 5.01(d).

                (e) Capital Account Deficits. Loss shall not be allocated to a
Limited Partner to the extent that such allocation would cause a deficit in such
Partner's Capital Account (after reduction to reflect the items described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of
such Partner's shares of Partnership Minimum Gain and Partner Nonrecourse Debt
Minimum Gain. Any Loss in excess of that limitation shall be allocated to the
General Partner. After the occurrence of an allocation of Loss to the General
Partner in accordance with this Section 5.01(e), to the extent permitted by
Regulations Section 1.704-1(b), Profit shall be allocated to such Partner in an
amount necessary to offset the Loss previously allocated to each Partner under
this Section 5.01(e).

                (f) Allocations Between Transferor and Transferee. If a Partner
transfers any part or all of its Partnership Interest, the distributive shares
of the various items of Profit and Loss allocable among the Partners during such
fiscal year of the Partnership shall be allocated between the transferor and the
transferee Partner either (i) as if the Partnership's fiscal year had ended on
the date of the transfer, or (ii) based on the number of days of such fiscal
year that each was a Partner without regard to the results of Partnership
activities in the respective portions of such fiscal year in which the
transferor and the transferee were Partners. The General Partner, in its sole
and absolute discretion, shall determine which method shall be used to allocate
the distributive shares of the various items of Profit and Loss between the
transferor and the transferee Partner.

                (g) Definition of Profit and Loss. "Profit" and "Loss" and any
items of income, gain, expense or loss referred to in this Agreement shall be
determined in accordance with federal income tax accounting principles, as
modified by Regulations Section 1.704-1(b)(2)(iv), except that Profit and Loss
shall not include items of income, gain and expense that are specially allocated
pursuant to Sections 5.01(c), 5.01(d) or 5.01(e). All allocations of

                                      -15-
<PAGE>

income, Profit, gain, Loss and expense (and all items contained therein) for
federal income tax purposes shall be identical to all allocations of such items
set forth in this Section 5.01, except as otherwise required by Section 704(c)
of the Code and Regulations Section 1.704-1(b)(4). The Partnership shall use the
traditional method for allocating items of income, gain and expense as required
by Section 704(c) of the Code with respect to the properties acquired by the
Partnership in connection with the private placement of the Company's
securities. With respect to other properties acquired by the Partnership, the
General Partner shall have the authority to elect the method to be used by the
Partnership for allocating items of income, gain and expense as required by
Section 704(c) of the Code with respect to such properties, and such election
shall be binding on all Partners.

         5.02 DISTRIBUTION OF CASH.

                (a) Subject to Section 5.02(c) hereof, the Partnership shall
distribute cash at such times and in such amounts as are determined by the
General Partner in its sole and absolute discretion, to the Partners who are
Partners on the Partnership Record Date with respect to such quarter (or other
distribution period) in accordance with their respective Percentage Interests on
the Partnership Record Date.

                (b) If a new or existing Partner acquires an additional
Partnership Interest in exchange for a Capital Contribution on any date other
than a Partnership Record Date, the cash distribution attributable to such
additional Partnership Interest relating to the Partnership Record Date next
following the issuance of such additional Partnership Interest shall be reduced
in the proportion to (i) the number of days that such additional Partnership
Interest is held by such Partner bears to (ii) the number of days between such
Partnership Record Date and the immediately preceding Partnership Record Date.

                (c) Notwithstanding any other provision of this Agreement, the
General Partner is authorized to take any action that it determines to be
necessary or appropriate to cause the Partnership to comply with any withholding
requirements established under the Code or any other federal, state or local law
including, without limitation, pursuant to Sections 1441, 1442, 1445 and 1446 of
the Code. To the extent that the Partnership is required to withhold and pay
over to any taxing authority any amount resulting from the allocation or
distribution of income to a Partner or assignee (including by reason of Section
1446 of the Code), either (i) if the actual amount to be distributed to the
Partner (the "Distributable Amount") equals or exceeds the amount required to be
withheld by the Partnership (the "Withheld Amount"), the entire Distributable
Amount shall be treated as a distribution of cash to such Partner, or (ii) if
the Distributable Amount is less than the Withheld Amount, the excess of the
Withheld Amount over the Distributable Amount shall be treated as a loan (a
"Partnership Loan") from the Partnership to the Partner on the day the
Partnership pays over such amount to a taxing authority. A Partnership Loan
shall be repaid upon the demand of the Partnership or, alternatively, through
withholding by the Partnership with respect to subsequent distributions to the
applicable Partner or assignee. In the event that a Limited Partner (a
"Defaulting Limited Partner") fails to pay any amount owed to the Partnership
with respect to the Partnership Loan within 15 days after demand for payment
thereof is made by the Partnership on the Limited Partner, the General Partner,
in its sole and absolute discretion, may elect to make the payment to the
Partnership on behalf of such Defaulting Limited Partner. In such event, on the
date of payment, the General

                                      -16-
<PAGE>

Partner shall be deemed to have extended a loan (a "General Partner Loan") to
the Defaulting Limited Partner in the amount of the payment made by the General
Partner and shall succeed to all rights and remedies of the Partnership against
the Defaulting Limited Partner as to that amount. Without limitation, the
General Partner shall have the right to receive any distributions that otherwise
would be made by the Partnership to the Defaulting Limited Partner until such
time as the General Partner Loan has been paid in full, and any such
distributions so received by the General Partner shall be treated as having been
received by the Defaulting Limited Partner and immediately paid to the General
Partner.

         Any amounts treated as a Partnership Loan or a General Partner Loan
pursuant to this Section 5.02(c) shall bear interest at the lesser of (i) 300
basis points above the base rate on corporate loans at large United States money
center commercial banks, as published from time to time in The Wall Street
Journal, or (ii) the maximum lawful rate of interest on such obligation, such
interest to accrue from the date the Partnership or the General Partner, as
applicable, is deemed to extend the loan until such loan is repaid in full.

                (d) In no event may a Partner receive a distribution of cash
with respect to a Partnership Unit if such Partner is entitled to receive a cash
dividend as the holder of record of a REIT Share for which all or part of such
Partnership Unit has been or will be redeemed.

         5.03 REIT DISTRIBUTION REQUIREMENTS. The General Partner shall use its
reasonable efforts to cause the Partnership to distribute amounts sufficient to
enable the Company to pay stockholder dividends that will allow the Company to
(i) meet its distribution requirement for qualification as a REIT as set forth
in Section 857 of the Code and (ii) avoid any federal income or excise tax
liability imposed by the Code, other than to the extent the Company elects to
retain and pay income tax on its net capital gain.

         5.04 NO RIGHT TO DISTRIBUTIONS IN KIND. No Partner shall be entitled to
demand property other than cash in connection with any distributions by the
Partnership.

         5.05 LIMITATIONS ON RETURN OF CAPITAL CONTRIBUTIONS. Notwithstanding
any of the provisions of this Article V, no Partner shall have the right to
receive, and the General Partner shall not have the right to make, a
distribution that includes a return of all or part of a Partner's Capital
Contributions, unless after giving effect to the return of a Capital
Contribution, the sum of all Partnership liabilities, other than the liabilities
to a Partner for the return of his Capital Contribution, does not exceed the
fair market value of the Partnership's assets.

         5.06 DISTRIBUTIONS UPON LIQUIDATION.

                (a) Upon liquidation of the Partnership, after payment of, or
adequate provision for, debts and obligations of the Partnership, including any
Partner loans, any remaining assets of the Partnership shall be distributed to
all Partners with positive Capital Accounts in accordance with their respective
positive Capital Account balances.

                (b) For purposes of Section 5.06(a), the Capital Account of each
Partner shall be determined after all adjustments made in accordance with
Sections 5.01 and 5.02 resulting from Partnership operations and from all sales
and dispositions of all or any part of the Partnership's assets.

                                      -17-
<PAGE>

                 (c) Any distributions pursuant to this Section 5.06 shall be
made by the end of the Partnership's taxable year in which the liquidation
occurs (or, if later, within 90 days after the date of the liquidation). To the
extent deemed advisable by the General Partner, appropriate arrangements
(including the use of a liquidating trust) may be made to assure that adequate
funds are available to pay any contingent debts or obligations.

         5.07 SUBSTANTIAL ECONOMIC EFFECT. It is the intent of the Partners that
the allocations of Profit and Loss under the Agreement have substantial economic
effect (or be consistent with the Partners' interests in the Partnership in the
case of the allocation of losses attributable to nonrecourse debt) within the
meaning of Section 704(b) of the Code as interpreted by the Regulations
promulgated pursuant thereto. Article V and other relevant provisions of this
Agreement shall be interpreted in a manner consistent with such intent.

                                   ARTICLE VI

                             RIGHTS, OBLIGATIONS AND
                          POWERS OF THE GENERAL PARTNER

         6.01 MANAGEMENT OF THE PARTNERSHIP.

                  (a) Except as otherwise expressly provided in this Agreement,
the General Partner shall have full, complete and exclusive discretion to manage
and control the business of the Partnership for the purposes herein stated, and
shall make all decisions affecting the business and assets of the Partnership.
Subject to the restrictions specifically contained in this Agreement, the powers
of the General Partner shall include, without limitation, the authority to take
the following actions on behalf of the Partnership:

                  (i) to acquire, purchase, own, operate, lease and dispose of
         any real property and any other property or assets including, but not
         limited to, notes and mortgages that the General Partner determines are
         necessary or appropriate in the business of the Partnership;

                  (ii) to construct buildings and make other improvements on the
         properties owned or leased by the Partnership;

                  (iii) to authorize, issue, sell, redeem or otherwise purchase
         any Partnership Interests or any securities (including secured and
         unsecured debt obligations of the Partnership, debt obligations of the
         Partnership convertible into any class or series of Partnership
         Interests, or options, rights, warrants or appreciation rights relating
         to any Partnership Interests) of the Partnership;

                  (iv) to borrow or lend money for the Partnership, issue or
         receive evidences of indebtedness in connection therewith, refinance,
         increase the amount of, modify, amend or change the terms of, or extend
         the time for the payment of, any such indebtedness, and secure
         indebtedness by mortgage, deed of trust, pledge or other lien on the
         Partnership's assets;

                                      -18-
<PAGE>

                  (v) to pay, either directly or by reimbursement, for all
         operating costs and general administrative expenses of the Partnership
         to third parties or to the General Partner or its Affiliates;

                  (vi) to guarantee or become a co-maker of indebtedness of any
         Subsidiary of the Company or the Partnership, refinance, increase the
         amount of, modify, amend or change the terms of, or extend the time for
         the payment of, any such guarantee or indebtedness, and secure such
         guarantee or indebtedness by mortgage, deed of trust, pledge or other
         lien on the Partnership's assets;

                  (vii) to use assets of the Partnership (including, without
         limitation, cash on hand) for any purpose consistent with this
         Agreement, including, without limitation, payment, either directly or
         by reimbursement, of all operating costs and general and administrative
         expenses of the General Partner, the Company, the Partnership or any
         Subsidiary of any of them as set forth in this Agreement;

                  (viii) to lease all or any portion of any of the Partnership's
         assets, whether or not the terms of such leases extend beyond the
         termination date of the Partnership and whether or not any portion of
         the Partnership's assets so leased are to be occupied by the lessee,
         or, in turn, subleased in whole or in part to others, for such
         consideration and on such terms as the General Partner may determine;

                  (ix) to prosecute, defend, arbitrate or compromise any and all
         claims or liabilities in favor of or against the Partnership, on such
         terms and in such manner as the General Partner may reasonably
         determine, and similarly to prosecute, settle or defend litigation with
         respect to the Partners, the Partnership or the Partnership's assets;

                  (x) to file applications, communicate and otherwise deal with
         any and all governmental agencies having jurisdiction over, or in any
         way affecting, the Partnership's assets or any other aspect of the
         Partnership business;

                  (xi) to make or revoke any election permitted or required of
         the Partnership by any taxing authority;

                  (xii) to maintain such insurance coverage for public
         liability, fire and casualty, and any and all other insurance for the
         protection of the Partnership, for the conservation of Partnership
         assets, or for any other purpose convenient or beneficial to the
         Partnership, in such amounts and such types, as it shall determine from
         time to time;

                  (xiii) to determine whether or not to apply any insurance
         proceeds for any property to the restoration of such property or to
         distribute the same;

                  (xiv) to establish one or more divisions of the Partnership,
         to hire and dismiss employees of the Partnership or any division of the
         Partnership, and to retain legal counsel, accountants, consultants,
         real estate brokers and such other persons as the General Partner may
         deem necessary or appropriate in connection with the Partnership
         business and to pay therefor such reasonable remuneration as the
         General Partner may deem reasonable and proper;

                                      -19-
<PAGE>

                  (xv) to retain other services of any kind or nature in
         connection with the Partnership business, and to pay therefor such
         remuneration as the General Partner may deem reasonable and proper;

                  (xvi) to negotiate and conclude agreements on behalf of the
         Partnership with respect to any of the rights, powers and authority
         conferred upon the General Partner;

                  (xvii) to maintain accurate accounting records and to file
         promptly all federal, state and local income tax returns on behalf of
         the Partnership;

                  (xviii) to distribute Partnership cash or other Partnership
         assets in accordance with this Agreement;

                  (xix) to form or acquire an interest in, and contribute
         property to, any further limited or general partnerships, joint
         ventures or other relationships that it deems desirable (including,
         without limitation, the acquisition of interests in, and the
         contributions of property to, its Subsidiaries and any other Person in
         which it has an equity interest from time to time);

                  (xx) to establish Partnership reserves for working capital,
         capital expenditures, contingent liabilities or any other valid
         Partnership purpose;

                  (xxi) to merge, consolidate or combine the Partnership with or
         into another person;

                  (xxii) to do any and all acts and things necessary or prudent
         to ensure that the Partnership will not be classified as a "publicly
         traded partnership" taxable as a corporation under Section 7704 of the
         Code; and

                  (xxiii) to take such other action, execute, acknowledge, swear
         to or deliver such other documents and instruments, and perform any and
         all other acts that the General Partner deems necessary or appropriate
         for the formation, continuation and conduct of the business and affairs
         of the Partnership (including, without limitation, all actions
         consistent with allowing the Company at all times to qualify as a REIT
         unless the Company voluntarily terminates its REIT status) and to
         possess and enjoy all of the rights and powers of a general partner as
         provided by the Act.

                  Except as otherwise provided herein, each of the Limited
         Partners agrees that the General Partner is authorized to execute,
         deliver and perform the above mentioned agreements and transactions on
         behalf of the Partnership without any further act, approval or vote of
         the Partners, notwithstanding any other provision of this Agreement,
         the Act or any applicable law. The execution, delivery and performance
         by the General Partner of the above mentioned agreements and
         transactions shall not constitute a breach of any duty under this
         Agreement or implied in law or equity.

             (b) Except as otherwise provided herein, to the extent the duties
of the General Partner require expenditures of funds to be paid to third
parties, the General Partner shall

                                      -20-
<PAGE>

not have any obligations hereunder except to the extent that Partnership funds
are reasonably available to it for the performance of such duties, and nothing
herein contained shall be deemed to authorize or require the General Partner, in
its capacity as such, to expend its individual funds for payment to third
parties or to undertake any individual liability or obligation on behalf of the
Partnership, and neither the General Partner nor any Limited Partner shall have
any obligation to contribute to the capital of the Partnership or otherwise
provide funds to enable the Partnership to fund its obligations under this
section, except to the extent otherwise expressly agreed to by such Partner and
the Partnership.

         6.02 DELEGATION OF AUTHORITY. The General Partner may delegate any or
all of its powers, rights and obligations hereunder to any Person that the
General Partner may from time to time determine, including, without limitation,
the officers and employees of the Partnership, the General Partner, the Company
and any Subsidiary of the Company and may further appoint, employ, contract or
otherwise deal with any Person for the transaction of the business of the
Partnership, which Person may, under supervision of the General Partner, perform
any acts or services for the Partnership as the General Partner may approve.
Without limiting the generality of the foregoing, the following officers of the
Partnership, who, subject to the general supervision and control of the General
Partner, may exercise the rights and powers of the General Partner to manage the
day-to-day operations of the Partnership: Chief Executive Officer, President,
one or more Vice Presidents, Chief Financial Officer, Chief Operations Officer,
Secretary and Treasurer.

         6.03 INDEMNIFICATION AND EXCULPATION OF INDEMNITEES.

                (a) The Partnership shall indemnify an Indemnitee from and
against any and all losses, claims, damages, liabilities, joint or several,
expenses (including reasonable legal fees and expenses), judgments, fines,
settlements, and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative,
that relate to the operations of the Partnership as set forth in this Agreement
in which any Indemnitee may be involved, or is threatened to be involved, as a
party or otherwise, unless it is established that: (i) the act or omission of
the Indemnitee was material to the matter giving rise to the proceeding and
either was committed in bad faith or was the result of active and deliberate
dishonesty; (ii) the Indemnitee actually received an improper personal benefit
in money, property or services; or (iii) in the case of any criminal proceeding,
the Indemnitee had reasonable cause to believe that the act or omission was
unlawful. The termination of any proceeding by judgment, order or settlement
does not create a presumption that the Indemnitee did not meet the requisite
standard of conduct set forth in this Section 6.03(a). The termination of any
proceeding by conviction or upon a plea of nolo contendere or its equivalent, or
an entry of an order of probation prior to judgment, creates a rebuttable
presumption that the Indemnitee acted in a manner contrary to that specified in
this Section 6.03(a). Any indemnification pursuant to this Section 6.03 shall be
made only out of the assets of the Partnership.

                (b) The Partnership shall reimburse an Indemnitee for reasonable
expenses incurred by an Indemnitee who is a party to a proceeding in advance of
the final disposition of the proceeding upon receipt by the Partnership of (i) a
written affirmation by the Indemnitee of the Indemnitee's good faith belief that
the standard of conduct necessary for indemnification by the Partnership as
authorized in this Section 6.03 has been met, and (ii) a written undertaking by

                                      -21-
<PAGE>

or on behalf of the Indemnitee to repay the amount if it shall ultimately be
determined that the standard of conduct has not been met.

                  (c) The indemnification provided by this Section 6.03 shall be
in addition to any other rights to which an Indemnitee or any other Person may
be entitled under any agreement, pursuant to any vote of the Partners, as a
matter of law or otherwise, and shall continue as to an Indemnitee who has
ceased to serve in such capacity.

                  (d) The Partnership may, but shall not be obligated to,
purchase and maintain insurance, on behalf of the Indemnitees and such other
Persons as the General Partner shall determine, against any liability that may
be asserted against or expenses that may be incurred by such Person in
connection with the Partnership's activities, regardless of whether the
Partnership would have the power to indemnify such Person against such liability
under the provisions of this Agreement.

                  (e) For purposes of this Section 6.03, the Partnership shall
be deemed to have requested an Indemnitee to serve as fiduciary of an employee
benefit plan whenever the performance by it of its duties to the Partnership
also imposes duties on, or otherwise involves services by, it to the plan or
participants or beneficiaries of the plan; excise taxes assessed on an
Indemnitee with respect to an employee benefit plan pursuant to applicable law
shall constitute fines within the meaning of this Section 6.03; and actions
taken or omitted by the Indemnitee with respect to an employee benefit plan in
the performance of its duties for a purpose reasonably believed by it to be in
the interest of the participants and beneficiaries of the plan shall be deemed
to be for a purpose that is not opposed to the best interests of the
Partnership.

                  (f) In no event may an Indemnitee subject the Limited Partners
to personal liability by reason of the indemnification provisions set forth in
this Agreement.

                  (g) An Indemnitee shall not be denied indemnification in whole
or in part under this Section 6.03 because the Indemnitee had an interest in the
transaction with respect to which the indemnification applies if the transaction
was otherwise permitted by the terms of this Agreement.

                  (h) The provisions of this Section 6.03 are for the benefit of
the Indemnitees, their heirs, successors, assigns and administrators and shall
not be deemed to create any rights for the benefit of any other Persons.

                  (i) Any amendment, modification or repeal of this Section 6.03
or any provision hereof shall be prospective only and shall not in any way
affect the indemnification of an Indemnitee by the Partnership under this
Section 6.03 as in effect immediately prior to such amendment, modification or
repeal with respect to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when claims relating to such
matters may arise or be asserted.

                  (j) If and to the extent any reimbursements to the General
Partner pursuant to this section constitute gross income of the General Partner
(as opposed to the repayment of advances made by the General Partner on behalf
of the Partnership) such amounts shall constitute guaranteed payments within the
meaning of Section 707(c) of the Code, shall be

                                      -22-
<PAGE>

treated consistently therewith by the Partnership and all Partners, and shall
not be treated as distributions for purposes of computing the Partners' Capital
Accounts.

         6.04 LIABILITY OF THE GENERAL PARTNER.

                  (a) Notwithstanding anything to the contrary set forth in this
Agreement, none of the General Partner, the Company, nor any of their directors,
officers, agents or employees shall be liable for monetary damages to the
Partnership or any Partners for losses sustained or liabilities incurred or
benefits not derived as a result of errors in judgment or mistakes of fact or
law or of any act or omission if the General Partner acted in good faith. The
General Partner shall not be in breach of any duty that the General Partner may
owe to the Limited Partners or the Partnership or any other Persons under this
Agreement or of any duty stated or implied by law or equity provided the General
Partner, acting in good faith, abides by the terms of this Agreement.

                  (b) The Limited Partners expressly acknowledge that the
General Partner is acting on behalf of the Partnership and the Company's
stockholders collectively, that the General Partner is under no obligation to
consider the separate interests of the Limited Partners (including, without
limitation, the tax consequences to Limited Partners or the tax consequences to
some, but not all, of the Limited Partners) in deciding whether to cause the
Partnership to take (or decline to take) any actions. In the event of a conflict
between the interests of the stockholders of the Company on one hand and the
Limited Partners on the other, the General Partner shall endeavor in good faith
to resolve the conflict in a manner not adverse to either the stockholders of
the Company or the Limited Partners; provided, however, that for so long as the
Company owns a controlling interest in the Partnership, any such conflict that
the General Partner, in its sole and absolute discretion, determines cannot be
resolved in a manner not adverse to either the stockholders of the Company or
the Limited Partners shall be resolved in favor of the stockholders of the
Company. The General Partner shall not be liable for monetary damages for losses
sustained, liabilities incurred or benefits not derived by Limited Partners in
connection with such decisions.

                  (c) Subject to its obligations and duties as General Partner
set forth in Section 6.01 hereof, the General Partner may exercise any of the
powers granted to it under this Agreement and perform any of the duties imposed
upon it hereunder either directly or by or through its agents. The General
Partner shall not be responsible for any misconduct or negligence on the part of
any such agent appointed by it in good faith.

                  (d) Notwithstanding any other provisions of this Agreement or
the Act, any action of the General Partner on behalf of the Partnership or any
decision of the General Partner to refrain from acting on behalf of the
Partnership, undertaken in the good faith belief that such action or omission is
necessary or advisable in order (i) to protect the ability of the Company to
continue to qualify as a REIT or (ii) to prevent the Company from incurring any
taxes under Section 857, Section 4981, or any other provision of the Code, is
expressly authorized under this Agreement and is deemed approved by all of the
Limited Partners.

                  (e) Any amendment, modification or repeal of this Section 6.04
or any provision hereof shall be prospective only and shall not in any way
affect the limitations on the

                                      -23-
<PAGE>

General Partner's or any of its officer's, director's, agent's or employee's
liability to the Partnership and the Limited Partners under this Section 6.04 as
in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when claims
relating to such matters may arise or be asserted.

         6.05 PARTNERSHIP OBLIGATIONS.

                  (a) Except as provided in this Section 6.05 and elsewhere in
this Agreement (including the provisions of Articles V and VI regarding
distributions, payments and allocations to which it may be entitled), the
General Partner shall not be compensated for its services as general partner of
the Partnership.

                  (b) All Administrative Expenses shall be obligations of the
Partnership, and each of the General Partner and the Company shall be entitled
to reimbursement by the Partnership for any expenditure (including
Administrative Expenses) incurred by it on behalf of the Partnership that shall
be made other than out of the funds of the Partnership.

         6.06 OUTSIDE ACTIVITIES. Subject to Section 6.08 hereof, the Articles
of Incorporation and any agreements entered into by the General Partner, the
Company or any of their respective Affiliates with the Partnership, any
Subsidiary or any officer, director, employee, agent, trustee, Affiliate or
stockholder of the Company, the General Partner and the Company shall be
entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and
activities substantially similar or identical to those of the Partnership. None
of the Partnership, the Limited Partners nor any other Person shall have any
rights by virtue of this Agreement or the partnership relationship established
hereby in any such business ventures, interests or activities, and the General
Partner and the Company shall have no obligation pursuant to this Agreement to
offer any interest in any such business ventures, interests and activities to
the Partnership or any Limited Partner, even if such opportunity is of a
character that, if presented to the Partnership or any Limited Partner, could be
taken by such Person.

         6.07 EMPLOYMENT OR RETENTION OF AFFILIATES.

                  (a) Any Affiliate of the General Partner may be employed or
retained by the Partnership and may otherwise deal with the Partnership (whether
as a buyer, lessor, lessee, manager, furnisher of goods or services, broker,
agent, lender or otherwise) and may receive from the Partnership any
compensation, price or other payment therefor that the General Partner
determines to be fair and reasonable.

                  (b) The Partnership may lend or contribute to its Subsidiaries
or other Persons in which it has an equity investment, and such Persons may
borrow funds from the Partnership, on terms and conditions established in the
sole and absolute discretion of the General Partner. The foregoing authority
shall not create any right or benefit in favor of any Subsidiary or any other
Person.

                  (c) The Partnership may transfer assets to joint ventures,
other partnerships, corporations or other business entities in which it is or
thereby becomes a participant upon such

                                      -24-
<PAGE>

terms and subject to such conditions as the General Partner deems are consistent
with this Agreement and applicable law.

         6.08 GENERAL PARTNER ACTIVITIES. The General Partner and the Company
agree that, generally, all business activities of the General Partner and the
Company, including activities pertaining to the acquisition, development or
ownership of a healthcare property or other property, shall be conducted through
the Partnership or one or more Subsidiaries of the Partnership; provided,
however, that the General Partner or the Company may make a direct acquisition
or undertake a business activity directly if such acquisition is made in
connection with the issuance of Additional Securities and direct acquisition and
issuance or the business activity has been approved by a majority of the Board
Directors.

         6.09 TITLE TO PARTNERSHIP ASSETS. Title to Partnership assets, whether
real, personal or mixed and whether tangible or intangible, shall be deemed to
be owned by the Partnership as an entity, and no Partner, individually or
collectively, shall have any ownership interest in such Partnership assets or
any portion thereof. Title to any or all of the Partnership assets may be held
in the name of the Partnership, the General Partner or one or more nominees, as
the General Partner may determine, including Affiliates of the General Partner.
The General Partner hereby declares and warrants that any Partnership assets for
which legal title is held in the name of the General Partner or any nominee or
Affiliate of the General Partner shall be held by the General Partner for the
use and benefit of the Partnership in accordance with the provisions of this
Agreement; provided, however, that the General Partner shall use its best
efforts to cause beneficial and record title to such assets to be vested in the
Partnership as soon as reasonably practicable. All Partnership assets shall be
recorded as the property of the Partnership in its books and records,
irrespective of the name in which legal title to such Partnership assets is
held.

         6.10 REDEMPTION OF COMPANY PARTNERSHIP UNITS. In the event the Company
redeems or repurchases any REIT Shares, then the General Partner shall cause the
Partnership to purchase from the Company a number of Partnership Units as
determined based on the application of the Conversion Factor on substantially
the same terms that the Company redeemed such REIT Shares.

                                  ARTICLE VII

                  CHANGES IN THE COMPANY OR THE GENERAL PARTNER

         7.01 TRANSFER OF THE GENERAL PARTNER'S PARTNERSHIP INTEREST.

                  (a) Except as provided in Section 4.02 or Section 6.10 hereof,
neither the General Partner nor the Company shall transfer all or any portion of
its Partnership Interest and the General Partner shall not withdraw as General
Partner except as provided in or in connection with a transaction contemplated
by Section 7.01(c), (d) or (e).

                  (b) The General Partner agrees that its Percentage Interest
will at all times be in the aggregate at least 1%.

                  (c) Except as otherwise provided in Section 7.01(d) hereof,
the Company shall not engage in any merger, consolidation or other combination
with or into another Person

                                      -25-
<PAGE>

or sale of all or substantially all of its assets (other than in connection with
a change in the Company's state of incorporation or organizational form), in
each case which results in a change of control of the Company (a "Transaction"),
unless at least one of the following conditions is met:

                  (i) the consent of Limited Partners (other than the General
         Partner, the Company or any Subsidiary of either of them) holding more
         than 50% of the Percentage Interests of the Limited Partners (other
         than those held by the General Partner or any Subsidiary) is obtained;
         or

                  (ii) as a result of such Transaction all Limited Partners will
         receive, or have the right to elect to receive, for each Partnership
         Unit an amount of cash, securities or other property equal in value to
         the product of the Conversion Factor and the greatest amount of cash,
         securities or other property paid in the Transaction to a holder of one
         REIT Share in consideration of one REIT Share, provided that if, in
         connection with the Transaction, a purchase, tender or exchange offer
         ("Offer") shall have been made to and accepted by the holders of more
         than 50% of the outstanding REIT Shares, each holder of Partnership
         Units shall be given the option to exchange its Partnership Units for
         the greatest amount of cash, securities or other property that a
         Limited Partner would have received had it (A) exercised its Redemption
         Right and (B) sold, tendered or exchanged pursuant to the Offer the
         REIT Shares received upon exercise of the Redemption Right immediately
         prior to the expiration of the Offer; or

                  (iii) the General Partner or the Company is the surviving
         entity in the Transaction and either (A) the holders of REIT Shares do
         not receive cash, securities or other property in the Transaction or
         (B) all Limited Partners (other than the General Partner or any
         Subsidiary) receive for each Partnership Unit an amount of cash,
         securities or other property having a value (expressed as an amount per
         REIT Share) that is no less than the product of the Conversion Factor
         and the greatest amount of cash, securities or other property
         (expressed as an amount per REIT Share) received in the Transaction by
         any holder of REIT Shares.

         (d) Notwithstanding Section 7.01(c), the General Partner or the Company
may merge with or into or consolidate with another entity if immediately after
such merger or consolidation (i) substantially all of the assets of the
successor or surviving entity (the "Survivor"), other than Partnership Units
held by the General Partner or the Company, are contributed, directly or
indirectly, to the Partnership as a Capital Contribution in exchange for
Partnership Units with a fair market value equal to the value of the assets so
contributed as determined by the Survivor in good faith and (ii) the Survivor
expressly agrees to assume all obligations of the General Partner and the
Company hereunder. Upon such contribution and assumption, the Survivor shall
have the right and duty to amend this Agreement as set forth in this Section
7.01(d). The Survivor shall in good faith arrive at a new method for the
calculation of the Cash Amount, the REIT Shares Amount and Conversion Factor for
a Partnership Unit after any such merger or consolidation so as to approximate
the existing method for such calculation as closely as reasonably possible. Such
calculation shall take into account, among other things, the kind and amount of
securities, cash and other property that was receivable upon such merger or
consolidation by a holder of REIT Shares or options, warrants or other rights

                                      -26-
<PAGE>

relating thereto, and which a holder of Partnership Units could have acquired
had such Partnership Units been exchanged immediately prior to such merger or
consolidation. Such amendment to this Agreement shall provide for adjustment to
such method of calculation, which shall be as nearly equivalent as may be
practicable to the adjustments provided for with respect to the Conversion
Factor. The Survivor also shall in good faith modify the definition of REIT
Shares and make such amendments to Section 8.04 hereof so as to approximate the
existing rights and obligations set forth in Section 8.04 as closely as
reasonably possible. The above provisions of this Section 7.01(d) shall
similarly apply to successive mergers or consolidations permitted hereunder.

         (e) Notwithstanding anything in this Article VII,

                  (i) the General Partner may transfer all or any portion of its
         General Partnership Interest to (A) the Company or (B) any direct or
         indirect Subsidiary of the Company and, following a transfer of all of
         its General Partnership Interest, may withdraw as General Partner; and

                  (ii) the General Partner or the Company may engage in a
         transaction required by law or by the rules of any national securities
         exchange on which the REIT Shares are listed.

         7.02 ADMISSION OF A SUBSTITUTE OR ADDITIONAL GENERAL PARTNER. A Person
shall be admitted as a substitute or additional General Partner of the
Partnership only if the following terms and conditions are satisfied:

                  (a) the Person to be admitted as a substitute or additional
General Partner shall have accepted and agreed to be bound by all the terms and
provisions of this Agreement by executing a counterpart thereof and such other
documents or instruments as may be required or appropriate in order to effect
the admission of such Person as a General Partner, and a certificate evidencing
the admission of such Person as a General Partner shall have been filed for
recordation and all other actions required by Section 2.06 hereof in connection
with such admission shall have been performed;

                  (b) if the Person to be admitted as a substitute or additional
General Partner is a corporation or a partnership, it shall have provided the
Partnership with evidence satisfactory to counsel for the Partnership of such
Person's authority to become a General Partner and to be bound by the terms and
provisions of this Agreement; and

                  (c) counsel for the Partnership shall have rendered an opinion
(relying on such opinions from other counsel as may be necessary) that the
admission of the Person to be admitted as a substitute or additional General
Partner is in conformity with the Act, that none of the actions taken in
connection with the admission of such Person as a substitute or additional
General Partner will cause (i) the Partnership to be classified other than as a
partnership for federal income tax purposes, or (ii) the loss of any Limited
Partner's limited liability.

                                      -27-
<PAGE>

         7.03 EFFECT OF BANKRUPTCY, WITHDRAWAL, DEATH OR DISSOLUTION OF A
GENERAL PARTNER.

                  (a) Upon the occurrence of an Event of Bankruptcy as to a
General Partner or the death, withdrawal, removal or dissolution of a General
Partner (except that, if a General Partner is on the date of such occurrence a
partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to, or
removal of a partner in, such partnership shall be deemed not to be a
dissolution of such General Partner if the business of such General Partner is
continued by the remaining partner or partners), the Partnership shall be
dissolved and terminated unless the Partnership is continued pursuant to Section
7.03(b) hereof. The merger of a General Partner with or into any entity that is
admitted as a substitute or successor General Partner pursuant to Section 7.02
hereof shall not be deemed to be the withdrawal, dissolution or removal of the
General Partner.

                  (b) Following the occurrence of an Event of Bankruptcy as to a
General Partner or the death, withdrawal, removal or dissolution of a General
Partner (except that, if a General Partner is on the date of such occurrence a
partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to, or
removal of a partner in, such partnership shall be deemed not to be a
dissolution of such General Partner if the business of such General Partner is
continued by the remaining partner or partners), the Limited Partners, within 90
days after such occurrence, may elect to continue the business of the
Partnership for the balance of the term specified in Section 2.04 hereof by
selecting, subject to Section 7.02 hereof and any other provisions of this
Agreement, a substitute General Partner by consent of a majority in interest of
the Limited Partners. If the Limited Partners elect to continue the business of
the Partnership and admit a substitute General Partner, the relationship with
the Partners and of any Person who has acquired an interest of a Partner in the
Partnership shall be governed by this Agreement.

         7.04 REMOVAL OF A GENERAL PARTNER.

                  (a) If on the date of an occurrence of an Event of Bankruptcy
as to, or the dissolution of, a General Partner, such General Partner is a
partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to or
removal of a partner in such partnership shall be deemed not to be a dissolution
of the General Partner if the business of such General Partner is continued by
the remaining partner or partners. The Limited Partners may not remove the
General Partner, with or without cause.

                  (b) If a General Partner has been removed pursuant to Section
7.03 and the Partnership is continued pursuant to Section 7.03 hereof, such
General Partner shall promptly transfer and assign its General Partnership
Interest in the Partnership to the substitute General Partner approved by a
majority in interest of the Limited Partners in accordance with Section 7.03(b)
hereof and otherwise admitted to the Partnership in accordance with Section 7.02
hereof. At the time of assignment, the removed General Partner shall be entitled
to receive from the substitute General Partner the fair market value of the
General Partnership Interest of such removed General Partner as reduced by any
damages caused to the Partnership by such General Partner. Such fair market
value shall be determined by an appraiser mutually agreed upon by the General
Partner and a majority in interest of the Limited Partners (excluding the
Company) within 10 days following the removal of the General Partner. In the
event that the parties are

                                      -28-
<PAGE>

unable to agree upon an appraiser, the removed General Partner and a majority in
interest of the Limited Partners (excluding the Company) each shall select an
appraiser. Each such appraiser shall complete an appraisal of the fair market
value of the removed General Partner's General Partnership Interest within 30
days of the General Partner's removal, and the fair market value of the removed
General Partner's General Partnership Interest shall be the average of the two
appraisals; provided, however, that if the higher appraisal exceeds the lower
appraisal by more than 20% of the amount of the lower appraisal, the two
appraisers, no later than 40 days after the removal of the General Partner,
shall select a third appraiser who shall complete an appraisal of the fair
market value of the removed General Partner's General Partnership Interest no
later than 60 days after the removal of the General Partner. In such case, the
fair market value of the removed General Partner's General Partnership Interest
shall be the average of the two appraisals closest in value. The cost of all
such appraisals shall be borne by the Partnership.

                  (c) The General Partnership Interest of a removed General
Partner, during the time after removal until transfer under Section 7.04(b),
shall be converted to that of a special Limited Partner; provided, however, such
removed General Partner shall not have any rights to participate in the
management and affairs of the Partnership, and shall not be entitled to any
portion of the income, expense, profit, gain or loss allocations or cash
distributions allocable or payable, as the case may be, to the Limited Partners.
Instead, such removed General Partner shall receive and be entitled only to
retain distributions or allocations of such items that it would have been
entitled to receive in its capacity as General Partner, until the transfer is
effective pursuant to Section 7.04(b).

                  (d) All Partners shall have given and hereby do give such
consents, shall take such actions and shall execute such documents as shall be
legally necessary and sufficient to effect all the foregoing provisions of this
Section.

                                  ARTICLE VIII

                             RIGHTS AND OBLIGATIONS
                             OF THE LIMITED PARTNERS

         8.01 MANAGEMENT OF THE PARTNERSHIP. The Limited Partners shall not
participate in the management or control of Partnership business nor shall they
transact any business for the Partnership, nor shall they have the power to sign
for or bind the Partnership, such powers being vested solely and exclusively in
the General Partner.

         8.02 POWER OF ATTORNEY. Subject to Section 8.03, each Limited Partner
hereby irrevocably appoints the General Partner its true and lawful
attorney-in-fact, who may act for each Limited Partner and in its name, place
and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver,
file or record, at the appropriate public offices, any and all documents,
certificates and instruments as may be deemed necessary or desirable by the
General Partner to carry out fully the provisions of this Agreement and the Act
in accordance with their terms, including amendments hereto, which power of
attorney is coupled with an interest and shall survive the death, dissolution or
legal incapacity of the Limited Partner, or the transfer by the Limited Partner
of any part or all of its Partnership Interest.

                                      -29-
<PAGE>

         8.03 LIMITATION ON LIABILITY OF LIMITED PARTNERS. No Limited Partner
shall be liable for any debts, liabilities, contracts or obligations of the
Partnership. A Limited Partner shall be liable to the Partnership only to make
payments of its Capital Contribution, if any, as and when due hereunder. After
its Capital Contribution is fully paid, no Limited Partner shall, except as
otherwise required by the Act, be required to make any further Capital
Contributions or other payments or lend any funds to the Partnership.

         8.04 REDEMPTION RIGHT.

                  (a) Subject to Sections 8.04(b), 8.04(c), 8.04(d), 8.04(e) and
8.04(f) and the provisions of any agreements between the Partnership and one or
more Limited Partners with respect to Partnership Units held by them, each
Limited Partner, other than the Company, shall have the right (the "Redemption
Right") to require the Partnership to redeem on a Specified Redemption Date all
or a portion of the Partnership Units held by such Limited Partner at a
redemption price equal to and in the form of the Redemption Amount to be paid by
the Partnership, provided that such Partnership Units shall have been
outstanding for at least one year, and subject to any restriction agreed to in
writing between the Redeeming Limited Partner and the General Partner or the
Partnership. The Redemption Right shall be exercised pursuant to a Notice of
Redemption delivered to the Partnership (with a copy to the Company) by the
Limited Partner who is exercising the Redemption Right (the "Redeeming Limited
Partner"); provided, further, that the Partnership shall, in its sole and
absolute discretion, have the option to deliver either the Cash Amount or the
REIT Shares Amount; provided, further, that the Partnership shall not be
obligated to satisfy such Redemption Right if the Company elects to purchase the
Partnership Units subject to the Notice of Redemption; and provided, further,
that no Limited Partner may deliver more than two Notices of Redemption during
each calendar year. Subject to the immediately succeeding sentence, a Limited
Partner may not, without the consent of the General Partner, exercise the
Redemption Right for less than 1,000 Partnership Units. If a Limited Partner
holds less than 1,000 Partnership Units, such Limited Partner may, without the
consent of the General Partner, exercise the Redemption Right for all of the
Partnership Units held by such Partner. The Redeeming Limited Partner shall have
no right, with respect to any Partnership Units so redeemed, to receive any
distribution paid with respect to Partnership Units if the record date for such
distribution is on or after the Specified Redemption Date.

                  (b) Notwithstanding the provisions of Section 8.04(a), a
Limited Partner that exercises the Redemption Right shall be deemed to have
offered to sell the Partnership Units described in the Notice of Redemption to
the Company, and the Company may, in its sole and absolute discretion, elect to
purchase directly and acquire such Partnership Units by paying to the Redeeming
Limited Partner either the Cash Amount or the REIT Shares Amount, as elected by
the Company (in its sole and absolute discretion), on the Specified Redemption
Date, whereupon the Company shall acquire the Partnership Units offered for
redemption by the Redeeming Limited Partner and shall be treated for all
purposes of this Agreement as the owner of such Partnership Units. If the
Company shall elect to exercise its right to purchase Partnership Units under
this Section 8.04(b) with respect to a Notice of Redemption, it shall so notify
the Redeeming Limited Partner within five Business Days after the receipt by the
Company of such Notice of Redemption.

                                      -30-
<PAGE>

         In the event the Company shall exercise its right to purchase
Partnership Units with respect to the exercise of a Redemption Right, the
Partnership shall have no obligation to pay any amount to the Redeeming Limited
Partner with respect to such Redeeming Limited Partner's exercise of such
Redemption Right, and each of the Redeeming Limited Partner, the Partnership and
the Company shall treat the transaction between the Company and the Redeeming
Limited Partner for federal income tax purposes as a sale of the Redeeming
Limited Partner's Partnership Units to the Company. Each Redeeming Limited
Partner agrees to execute such documents as the Company may reasonably require
in connection with the issuance of REIT Shares upon exercise of the Redemption
Right.

                  (c) Notwithstanding the provisions of Section 8.04(a) and
8.04(b), a Limited Partner shall not be entitled to exercise the Redemption
Right if the delivery of REIT Shares to such Partner on the Specified Redemption
Date by the Company pursuant to Section 8.04(b) (regardless of whether or not
the Company would in fact exercise its rights under Section 8.04(b)) would (i)
result in such Partner or any other person owning, directly or indirectly, REIT
Shares in excess of the Ownership Limitation (as defined in the Articles of
Incorporation) and calculated in accordance therewith, except as provided in the
Articles of Incorporation, (ii) result in REIT Shares being owned by fewer than
100 persons (determined without reference to any rules of attribution), (iii)
result in the Company being "closely held" within the meaning of Section 856(h)
of the Code, (iv) cause the Company to own, directly or constructively, 10% or
more of the ownership interests in a tenant of the Company's, the Partnership's
or a Subsidiary Partnership's real property, within the meaning of Section
856(d)(2)(B) of the Code, or (v) cause the acquisition of REIT Shares by such
Partner to be "integrated" with any other distribution of REIT Shares for
purposes of complying with the registration provisions of the Securities Act of
1933, as amended (the "Securities Act"). The General Partner, in its sole and
absolute discretion, may waive the restriction on redemption set forth in this
Section 8.04(c).

                  The consummation of any redemption in exchange for REIT Shares
shall be subject to the expiration or termination of any waiting period under
applicable law.

                  (d) Any Cash Amount to be paid to a Redeeming Limited Partner
pursuant to this Section 8.04 shall be paid on the Specified Redemption Date;
provided, however, that the General Partner may elect to cause the Specified
Redemption Date to be delayed for up to an additional 90 days to the extent
required for the Company to cause additional REIT Shares to be issued to provide
financing to be used to make such payment of the Cash Amount. Notwithstanding
the foregoing, the General Partner agrees to use its best efforts to cause the
closing of the acquisition of redeemed Partnership Units hereunder to occur as
quickly as reasonably possible.

                  (e) Notwithstanding any other provision of this Agreement, the
General Partner is authorized to take any action that it determines to be
necessary or appropriate to cause the Partnership to comply with any withholding
requirements established under the Code or any other federal, state or local law
that apply upon a Redeeming Limited Partner's exercise of the Redemption Right.
If a Redeeming Limited Partner believes that it is exempt from such withholding
upon the exercise of the Redemption Right, such Partner must furnish the General
Partner with a FIRPTA Certificate in the form attached hereto as Exhibit C. If
the Partnership,

                                      -31-
<PAGE>

the Company or the General Partner is required to withhold and pay over to any
taxing authority any amount upon a Redeeming Limited Partner's exercise of the
Redemption Right and if the Redemption Amount equals or exceeds the Withheld
Amount, the Withheld Amount shall be treated as an amount received by such
Partner in redemption of its Partnership Units. If, however, the Redemption
Amount is less than the Withheld Amount, the Redeeming Limited Partner shall not
receive any portion of the Redemption Amount, the Redemption Amount shall be
treated as an amount received by such Partner in redemption of its Partnership
Units, and the Partner shall contribute the excess of the Withheld Amount over
the Redemption Amount to the Partnership before the Partnership is required to
pay over such excess to a taxing authority.

                  (f) Notwithstanding any other provision of this Agreement, the
General Partner shall place appropriate restrictions on the ability of the
Limited Partners to exercise their Redemption Rights as and if deemed necessary
to ensure that the Partnership does not constitute a "publicly traded
partnership" taxable as a corporation under section 7704 of the Code. If and
when the General Partner determines that imposing such restrictions is
necessary, the General Partner shall give prompt written notice thereof (a
"Restriction Notice") to each of the Limited Partners, which notice shall be
accompanied by a copy of an opinion of counsel to the Partnership that states
that, in the opinion of such counsel, restrictions are necessary in order to
avoid the Partnership being treated as a "publicly traded partnership" under
section 7704 of the Code.

                                   ARTICLE IX

                       TRANSFERS OF PARTNERSHIP INTERESTS

         9.01 PURCHASE FOR INVESTMENT.

                  (a) Each Limited Partner hereby represents and warrants to the
General Partner and to the Partnership that (i) the acquisition of its
Partnership Interests and Partnership Units is made as a principal for its
account for investment purposes only and not with a view to the resale or
distribution of such Partnership Interest or Partnership Units, (ii) the Limited
Partner understands and agrees that its acquisition of Partnership Interests and
Partnership Units are being made in reliance on an exemption from registration
under the Securities Act, and (iii) the Limited Partner is an "accredited
investor" as that term may be defined pursuant to the rules and regulations of
the Securities and Exchange Commission from time to time.

                  (b) Subject to the provisions of Section 9.02, each Limited
Partner agrees that it will not sell, assign or otherwise transfer his
Partnership Interest or Partnership Units or any fraction thereof, whether
voluntarily or by operation of law or at judicial sale or otherwise, to any
Person who does not make the representations and warranties to the General
Partner and the Partnership set forth in Section 9.01(a) above.

         9.02 RESTRICTIONS ON TRANSFER OF PARTNERSHIP INTERESTS.

                  (a) Subject to the provisions of Sections 9.02(b), (c) and
(d), no Limited Partner may offer, sell, assign, hypothecate, pledge or
otherwise transfer all or any portion of his Partnership Interest or Partnership
Units, or any of such Limited Partner's economic rights as a

                                      -32-
<PAGE>

Limited Partner, whether voluntarily or by operation of law or at judicial sale
or otherwise (collectively, a "Transfer") without the consent of the General
Partner, which consent may be granted or withheld in its sole and absolute
discretion. The General Partner may require, as a condition of any Transfer to
which it consents, that the transferor assume all costs incurred by the
Partnership in connection therewith.

                  (b) No Limited Partner may withdraw from the Partnership other
than as a result of a permitted Transfer (i.e., a Transfer consented to as
contemplated by clause (a) above or clause (c) below or a Transfer pursuant to
Section 9.05 below) of all of his Partnership Units pursuant to this Article IX
or pursuant to a redemption of all of his Partnership Units pursuant to Section
8.04. Upon the permitted Transfer or redemption of all of a Limited Partner's
Partnership Units, such Limited Partner shall cease to be a Limited Partner.

                  (c) Subject to Sections 9.02(d) and (e) below, a Limited
Partner may Transfer, with the consent of the General Partner, all or a portion
of his Partnership Units to (i) a parent or parent's spouse, natural or adopted
descendant or descendants, spouse of such descendant, or brother or sister, or a
trust created by such Limited Partner for the benefit of such Limited Partner
and/or any such person(s), of which trust such Limited Partner or any such
person(s) is a trustee, (ii) a corporation, partnership or limited liability
company controlled by a Person or Persons named in (i) above or (iii) if the
Limited Partner is an entity, its beneficial owners.

                  (d) No Limited Partner may effect a Transfer of its
Partnership Interest or Partnership Units, in whole or in part, if, in the
opinion of legal counsel for the Partnership, such proposed Transfer would
require the registration of the Partnership Interest or Partnership Units under
the Securities Act or would otherwise violate any applicable federal or state
securities or blue sky law (including investment suitability standards).

                  (e) No Transfer by a Limited Partner of its Partnership
Interest or Partnership Units, in whole or in part, may be made to any Person if
(i) in the opinion of legal counsel for the Partnership, the transfer would
result in the Partnership's being treated as a publicly traded partnership
taxable as a corporation or an association taxable as a corporation (other than
a qualified REIT subsidiary within the meaning of Section 856(i) of the Code) or
(ii) in the opinion of legal counsel for the Partnership, it would adversely
affect the ability of the Company to continue to qualify as a REIT or subject
the Company to any additional taxes under Section 857 or Section 4981 of the
Code.

                  (f) Any purported Transfer in contravention of any of the
provisions of this Article IX shall be void ab initio and ineffectual and shall
not be binding upon, or recognized by, the General Partner or the Partnership.

                  (g) Prior to and as a condition of the consummation of any
Transfer under this Article IX, the transferor and/or the transferee shall
deliver to the General Partner such opinions, certificates and other documents
as the General Partner shall request in connection with such Transfer.

                                      -33-
<PAGE>

         9.03 ADMISSION OF SUBSTITUTE LIMITED PARTNER.

                  (a) Subject to the other provisions of this Article IX, an
assignee of the Partnership Interest of a Limited Partner (which shall be
understood to include any purchaser, transferee, donee or other recipient of any
disposition of such Partnership Interest) or Partnership Units shall be deemed
admitted as a Limited Partner of the Partnership only with the consent of the
General Partner, which consent may be given or withheld by the General Partner
in its sole and absolute discretion, and upon the satisfactory completion of the
following:

                  (i) The assignee shall have accepted and agreed to be bound by
         the terms and provisions of this Agreement by executing a counterpart
         or an amendment thereof, including a revised Exhibit A, and such other
         documents or instruments as the General Partner may require in order to
         effect the admission of such Person as a Limited Partner.

                  (ii) To the extent required, an amended Certificate evidencing
         the admission of such Person as a Limited Partner shall have been
         signed, acknowledged and filed for record in accordance with the Act.

                  (iii) The assignee shall have delivered a letter containing
         the representation set forth in Section 9.01(a) hereof and the
         agreement set forth in Section 9.01(b) hereof.

                  (iv) If the assignee is a corporation, partnership or trust,
         the assignee shall have provided the General Partner with evidence
         satisfactory to counsel for the Partnership of the assignee's authority
         to become a Limited Partner under the terms and provisions of this
         Agreement.

                  (v) The assignee shall have executed a power of attorney
         containing the terms and provisions set forth in Section 8.02 hereof.

                  (vi) The assignee shall have paid all legal fees and other
         expenses of the Partnership and the General Partner and filing and
         publication costs in connection with its substitution as a Limited
         Partner.

                  (vii) The assignee shall have obtained the prior written
         consent of the General Partner to its admission as a Substitute Limited
         Partner, which consent may be given or denied in the exercise of the
         General Partner's sole and absolute discretion.

                  (b) For the purpose of allocating Profits and Losses and
distributing cash received by the Partnership, a Substitute Limited Partner
shall be treated as having become, and appearing in the records of the
Partnership as, a Partner upon the filing of the Certificate described in
Section 9.03(a)(ii) hereof or, if no such filing is required, the later of the
date specified in the transfer documents or the date on which the General
Partner has received all necessary instruments of transfer and substitution.

                  (c) The General Partner shall cooperate with the Person
seeking to become a Substitute Limited Partner by preparing the documentation
required by this Section and making

                                      -34-
<PAGE>

all official filings and publications. The Partnership shall take all such
action as promptly as practicable after the satisfaction of the conditions in
this Article IX to the admission of such Person as a Limited Partner of the
Partnership.

                  (d) The General Partner's failure or refusal to permit a
transferee of any such interests to become a Substitute Limited Partner shall
not give rise to any cause of action against the Partnership or any partner.

         9.04 RIGHTS OF ASSIGNEES OF PARTNERSHIP INTERESTS.

                  (a) Subject to the provisions of Sections 9.01 and 9.02
hereof, except as required by operation of law, the Partnership shall not be
obligated for any purposes whatsoever to recognize the assignment by any Limited
Partner of its Partnership Interest or Partnership Units until the Partnership
has received notice thereof.

                  (b) Any Person who is the assignee of all or any portion of a
Limited Partner's Partnership Interest or Partnership Units, but does not become
a Substitute Limited Partner and desires to make a further assignment of such
Partnership Interest or Partnership Units, shall be subject to all the
provisions of this Article IX to the same extent and in the same manner as any
Limited Partner desiring to make an assignment of its Partnership Interest or
Partnership Units.

         9.05 EFFECT OF BANKRUPTCY, DEATH, INCOMPETENCE OR TERMINATION OF A
LIMITED PARTNER. The occurrence of an Event of Bankruptcy as to a Limited
Partner, the death of a Limited Partner or a final adjudication that a Limited
Partner is incompetent (which term shall include, but not be limited to,
insanity) shall not cause the termination or dissolution of the Partnership, and
the business of the Partnership shall continue if an order for relief in a
bankruptcy proceeding is entered against a Limited Partner, the trustee or
receiver of his estate or, if he dies, his executor, administrator or trustee,
or, if he is finally adjudicated incompetent, his committee, guardian or
conservator, shall have the rights of such Limited Partner for the purpose of
settling or managing his estate property and such power as the bankrupt,
deceased or incompetent Limited Partner possessed to assign all or any part of
his Partnership Interest and to join with the assignee in satisfying conditions
precedent to the admission of the assignee as a Substitute Limited Partner.

         9.06 JOINT OWNERSHIP OF INTERESTS. A Partnership Interest may be
acquired by two individuals as joint tenants with right of survivorship,
provided that such individuals either are married or are related and share the
same home as tenants in common. The written consent or vote of both owners of
any such jointly held Partnership Interest shall be required to constitute the
action of the owners of such Partnership Interest; provided, however, that the
written consent of only one joint owner will be required if the Partnership has
been provided with evidence satisfactory to the counsel for the Partnership that
the actions of a single joint owner can bind both owners under the applicable
laws of the state of residence of such joint owners. Upon the death of one owner
of a Partnership Interest held in a joint tenancy with a right of survivorship,
the Partnership Interest shall become owned solely by the survivor as a Limited
Partner and not as an assignee. The Partnership need not recognize the death of
one of the owners of a jointly-held Partnership Interest until it shall have
received notice of such death. Upon notice to the General Partner from either
owner, the General Partner shall cause the Partnership Interest to be

                                      -35-
<PAGE>

divided into two equal Partnership Interests, which shall thereafter be owned
separately by each of the former owners.

                                   ARTICLE X

                   BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

         10.01 BOOKS AND RECORDS. At all times during the continuance of the
Partnership, the Partners shall keep or cause to be kept at the Partnership's
specified office true and complete books of account in accordance with generally
accepted accounting principles, including: (a) a current list of the full name
and last known business address of each Partner, (b) a copy of the Certificate
of Limited Partnership and all certificates of amendment thereto, (c) copies of
the Partnership's federal, state and local income tax returns and reports, (d)
copies of this Agreement and any financial statements of the Partnership for the
three most recent years and (e) all documents and information required under the
Act. Any Partner or its duly authorized representative, upon paying the costs of
collection, duplication and mailing, shall be entitled to inspect or copy such
records during ordinary business hours.

         10.02 CUSTODY OF PARTNERSHIP FUNDS; BANK ACCOUNTS.

                  (a) All funds of the Partnership not otherwise invested shall
be deposited in one or more accounts maintained in such banking or brokerage
institutions as the General Partner shall determine, and withdrawals shall be
made only on such signature or signatures as the General Partner may, from time
to time, determine.

                  (b) All deposits and other funds not needed in the operation
of the business of the Partnership may be invested by the General Partner in
investment grade instruments (or investment companies whose portfolio consists
primarily thereof), government obligations, certificates of deposit, bankers'
acceptances and municipal notes and bonds. The funds of the Partnership shall
not be commingled with the funds of any other Person except for such commingling
as may necessarily result from an investment in those investment companies
permitted by this Section 10.02(b).

         10.03 FISCAL AND TAXABLE YEAR. The fiscal and taxable year of the
Partnership shall be the calendar year.

         10.04 ANNUAL TAX INFORMATION AND REPORT. Within 75 days after the end
of each fiscal year of the Partnership, the General Partner shall furnish to
each person who was a Limited Partner at any time during such year the tax
information necessary to file such Limited Partner's individual tax returns as
shall be reasonably required by law.

         10.05 TAX MATTERS PARTNER; TAX ELECTIONS; SPECIAL BASIS ADJUSTMENTS.

                  (a) The General Partner shall be the Tax Matters Partner of
the Partnership within the meaning of Section 6231(a)(7) of the Code. As Tax
Matters Partner, the General Partner shall have the right and obligation to take
all actions authorized and required, respectively, by the Code for the Tax
Matters Partner. The General Partner shall have the right to retain professional
assistance in respect of any audit of the Partnership by the Service and all

                                      -36-
<PAGE>

out-of-pocket expenses and fees incurred by the General Partner on behalf of the
Partnership as Tax Matters Partner shall constitute Partnership expenses. In the
event the General Partner receives notice of a final Partnership adjustment
under Section 6223(a)(2) of the Code, the General Partner shall either (i) file
a court petition for judicial review of such final adjustment within the period
provided under Section 6226(a) of the Code, a copy of which petition shall be
mailed to all Limited Partners on the date such petition is filed, or (ii) mail
a written notice to all Limited Partners, within such period, that describes the
General Partner's reasons for determining not to file such a petition.

                  (b) All elections required or permitted to be made by the
Partnership under the Code or any applicable state or local tax law shall be
made by the General Partner in its sole and absolute discretion.

                  (c) In the event of a transfer of all or any part of the
Partnership Interest of any Partner, the Partnership, at the option of the
General Partner, may elect pursuant to Section 754 of the Code to adjust the
basis of the Properties. Notwithstanding anything contained in Article V of this
Agreement, any adjustments made pursuant to Section 754 shall affect only the
successor in interest to the transferring Partner and in no event shall be taken
into account in establishing, maintaining or computing Capital Accounts for the
other Partners for any purpose under this Agreement. Each Partner will furnish
the Partnership with all information necessary to give effect to such election.

         10.06 REPORTS TO LIMITED PARTNERS.

                  (a) If the Company is required to furnish an annual report to
its stockholders containing financial statements of the Company , the Company
will, at the same time and in the same manner, furnish such annual report to
each Limited Partner. The annual financial statements shall be audited by
accountants selected by the Company.

                  (b) Any Partner shall further have the right to a private
audit of the books and records of the Partnership, provided such audit is made
for Partnership purposes, at the expense of the Partner desiring it and is made
during normal business hours.

                                   ARTICLE XI

                         AMENDMENT OF AGREEMENT; MERGER

         The General Partner's consent shall be required for any amendment to
this Agreement. The General Partner, without the consent of the Limited
Partners, may amend this Agreement in any respect; provided, however, that the
following amendments shall require the consent of Limited Partners (other than
the Company or any Subsidiary of the Company) holding more than 50% of the
Percentage Interests of the Limited Partners (other than those held by the
Company or any Subsidiary of the Company):

                  (a) any amendment affecting the operation of the Conversion
Factor or the Redemption Right (except as otherwise provided herein) in a manner
adverse to the Limited Partners;

                                      -37-
<PAGE>

                  (b) any amendment that would adversely affect the rights of
the Limited Partners to receive the distributions payable to them hereunder,
other than with respect to the issuance of additional Partnership Units pursuant
to Section 4.02 hereof;

                  (c) any amendment that would alter the Partnership's
allocations of Profit and Loss to the Limited Partners, other than with respect
to the issuance of additional Partnership Units pursuant to Section 4.02 hereof;

                  (d) any amendment that would impose on the Limited Partners
any obligation to make additional Capital Contributions to the Partnership; or

                  (e) any amendment to this Article XI.

         The General Partner, without the consent of the Limited Partners, may
(i) merge or consolidate the Partnership with or into any other domestic or
foreign partnership, limited partnership, limited liability company or
corporation in a transaction pursuant to Section 7.01(c) and (d) hereof, or (ii)
sell any, all or substantially all of the assets of the Partnership and may
amend this Agreement in connection with any such transaction.

                                  ARTICLE XII

                               GENERAL PROVISIONS

         12.01 NOTICES. All communications required or permitted under this
Agreement shall be in writing and shall be deemed to have been given when
delivered personally or upon deposit in the United States mail, registered,
postage prepaid return receipt requested, to the Partners at the addresses set
forth in Exhibit A attached hereto; provided, however, that any Partner may
specify a different address by notifying the General Partner in writing of such
different address. Notices to the Partnership shall be delivered at or mailed to
its specified office.

         12.02 SURVIVAL OF RIGHTS. Subject to the provisions hereof limiting
transfers, this Agreement shall be binding upon and inure to the benefit of the
Partners and the Partnership and their respective legal representatives,
successors, transferees and assigns.

         12.03 ADDITIONAL DOCUMENTS. Each Partner agrees to perform all further
acts and execute, swear to, acknowledge and deliver all further documents that
may be reasonable, necessary, appropriate or desirable to carry out the
provisions of this Agreement or the Act.

         12.04 SEVERABILITY. If any provision of this Agreement shall be
declared illegal, invalid or unenforceable in any jurisdiction, then such
provision shall be deemed to be severable from this Agreement (to the extent
permitted by law) and in any event such illegality, invalidity or
unenforceability shall not affect the remainder hereof.

         12.05 ENTIRE AGREEMENT. This Agreement and exhibits attached hereto
constitute the entire Agreement of the Partners and supersede all prior written
agreements and prior and contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof.

                                      -38-
<PAGE>

         12.06 PRONOUNS AND PLURALS. When the context in which words are used in
the Agreement indicates that such is the intent, words in the singular number
shall include the plural and the masculine gender shall include the neuter or
female gender as the context may require.

         12.07 HEADINGS. The Article headings or sections in this Agreement are
for convenience only and shall not be used in construing the scope of this
Agreement or any particular Article.

         12.08 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original copy and all of
which together shall constitute one and the same instrument binding on all
parties hereto, notwithstanding that all parties shall not have signed the same
counterpart.

         12.09 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware.

                                      -39-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have hereunder affixed their
signatures to this Amended and Restated Agreement of Limited Partnership, all as
of the date first above written.

                                  PARTNERSHIP:

                                  MPT OPERATING PARTNERSHIP, L.P.
                                  BY: MEDICAL PROPERTIES TRUST, LLC
                                  ITS: GENERAL PARTNER
                                  BY: MEDICAL PROPERTIES TRUST, INC.
                                  ITS: SOLE MEMBER

                                  By:  /s/ Edward K. Aldag, Jr.
                                     -------------------------------------------
                                  Name: Edward K. Aldag, Jr.
                                       -----------------------------------------
                                  Title: President & CEO
                                        ----------------------------------------

                                  GENERAL PARTNER:

                                  MEDICAL PROPERTIES TRUST, LLC
                                  BY: MEDICAL PROPERTIES TRUST, INC.
                                  ITS: SOLE MEMBER

                                  By:  /s/ Edward K. Aldag, Jr.
                                     -------------------------------------------
                                  Name: Edward K. Aldag, Jr.
                                       -----------------------------------------
                                  Title: President & CEO
                                        ----------------------------------------

                                  LIMITED PARTNERS:

                                  MEDICAL PROPERTIES TRUST, INC.

                                  By: /s/ Edward K. Aldag, Jr.
                                     -------------------------------------------
                                  Name: Edward K. Aldag, Jr.
                                       -----------------------------------------
                                  Title:  President & CEO
                                         ---------------------------------------

                                      -40-
<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>
                                                    Agreed Value
                                                         of         Number of
                                        Cash          Capital      Partnership    Percentage
Partner                              Contribution   Contribution      Units         Interest
                                     ------------   ------------   ------------   ------------
<S>                                  <C>            <C>            <C>            <C>
GENERAL PARTNER:
Medical Properties Trust, LLC
A Delaware limited liability
company                              $      16.30   $      16.30      16,304.35              1%

LIMITED PARTNERS:
 Medical Properties Trust, Inc.      $   1,614.14   $   1,614.14   1,614,130.65             99%

TOTALS:                              $   1,630.44   $   1,630.44      1,630,435            100%

</TABLE>

                                   Exhibit A-1
<PAGE>

                                    EXHIBIT B

                     NOTICE OF EXERCISE OF REDEMPTION RIGHT

         In accordance with Section 8.04 of the First Amended and Restated
Agreement of Limited Partnership (the "Agreement") of MPT Operating Partnership,
L.P., the undersigned hereby irrevocably (i) presents for redemption ________
Partnership Units in MPT Operating Partnership, L.P. in accordance with the
terms of the Agreement and the Redemption Right referred to in Section 8.04
thereof, (ii) surrenders such Partnership Units and all right, title and
interest therein and (iii) directs that the Cash Amount or REIT Shares Amount
(as defined in the Agreement) as determined by the General Partner and the
Company deliverable upon exercise of the Redemption Right be delivered to the
address specified below, and if REIT Shares (as defined in the Agreement) are to
be delivered, such REIT Shares be registered or placed in the name(s) and at the
address(es) specified below.

         Dated:________ __, _____

         Name of Limited Partner:

                                          --------------------------------------
                                          (Signature of Limited Partner)

                                          --------------------------------------
                                          (Mailing Address)

                                          --------------------------------------
                                          (City)  (State)  (Zip Code)

                                          Signature Guaranteed by:

                                          --------------------------------------

If REIT Shares are to be issued, issue to:

Please insert social security or identifying number:

Name:

                                   Exhibit B-1

<PAGE>

                                    EXHIBIT C

For Redeeming Limited Partners that are entities:

                       CERTIFICATION OF NON-FOREIGN STATUS

         Under section 1445(e) of the Internal Revenue Code of 1986, as amended
(the "Code"), in the event of a disposition by a non-U.S. person of a
partnership interest in a partnership in which (i) 50% or more of the value of
the gross assets consists of United States real property interests ("USRPIs"),
as defined in section 897(c) of the Code, and (ii) 90% or more of the value of
the gross assets consists of USRPIs, cash, and cash equivalents, the transferee
will be required to withhold 10% of the amount realized by the non-U.S. person
upon the disposition. To inform Medical Properties Trust, Inc. (the "Company")
and MPT Operating Partnership, L.P. (the "Partnership") that no withholding is
required with respect to the redemption by ____________ ("Partner") of its units
of partnership interest in the Partnership, the undersigned hereby certifies the
following on behalf of Partner:

1. Partner is not a foreign corporation, foreign partnership, foreign trust, or
foreign estate, as those terms are defined in the Code and the Treasury
regulations thereunder.

2. The U.S. employer identification number of Partner is _____________.

3. The principal business address of Partner is:
_____________________________________ __________________________ and Partner's
place of incorporation is____________________.

4. Partner agrees to inform the Company if it becomes a foreign person at any
time during the three-year period immediately following the date of this notice.

5. Partner understands that this certification may be disclosed to the Internal
Revenue Service by the Company and that any false statement contained herein
could be punished by fine, imprisonment, or both.

                                     PARTNER

                                     By:
                                         --------------------------------------
                                     Name:
                                           ------------------------------------
                                     Its:
                                          -------------------------------------

Under penalties of perjury, I declare that I have examined this certification
and, to the best of my knowledge and belief, it is true, correct, and complete,
and I further declare that I have authority to sign this document on behalf of
Partner.

Date:                                       [NAME]
      -----------------------------

                                            -----------------------------------
                                                     Title

                                   Exhibit C-1
<PAGE>

For Redeeming Limited Partners that are individuals:

                       CERTIFICATION OF NON-FOREIGN STATUS

         Under section 1445(e) of the Internal Revenue Code of 1986, as amended
(the "Code"), in the event of a disposition by a non-U.S. person of a
partnership interest in a partnership in which (i) 50% or more of the value of
the gross assets consists of United States real property interests ("USRPIs"),
as defined in section 897(c) of the Code, and (ii) 90% or more of the value of
the gross assets consists of USRPIs, cash, and cash equivalents, the transferee
will be required to withhold 10% of the amount realized by the non-U.S. person
upon the disposition. To inform Medical Properties Trust, Inc. (the "Company")
and MPT Operating Partnership, L.P. (the "Partnership") that no withholding is
required with respect to my redemption of my units of partnership interest in
the Partnership, I, ___________, hereby certify the following:

1. I am not a nonresident alien for purposes of U.S. income taxation.

2. My U.S. taxpayer identification number (social security number)
   is _____________.

3. My home address is: ____________________________________________________.

4. I agree to inform the Company promptly if I become a nonresident alien at any
time during the three-year period immediately following the date of this notice.

5. I understand that this certification may be disclosed to the Internal Revenue
Service by the Company and that any false statement contained herein could be
punished by fine, imprisonment, or both.

                                      -----------------------------------------
                                      Name:

Under penalties of perjury, I declare that I have examined this certification
and, to the best of my knowledge and belief, it is true, correct, and complete.

Date:
      ----------------------                            ------------------------
                                                          Name:

                                  Exhibit C-2<PAGE>

                                                                   EXHIBIT 10.39

                               SUBLEASE AGREEMENT

                           MPT OF NORTH CYPRESS, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP

                                    LANDLORD

                                       AND

              NORTH CYPRESS MEDICAL CENTER OPERATING COMPANY, LTD.
                           A TEXAS LIMITED PARTNERSHIP

                                     TENANT

                    PROPERTY: NORTH CYPRESS HOSPITAL FACILITY
                              HARRIS COUNTY, TEXAS

                               AS OF JUNE 1, 2005

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
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<S>                                                                                                           <C>
ARTICLE I DEFINITIONS....................................................................................       1
ARTICLE II LEASED PROPERTY AND TERM......................................................................      10
         2.1    Leased Property and Term.................................................................      10
         2.2    Purchase of Hospital Improvements........................................................      11
         2.3    REA Restrictions.........................................................................      11
ARTICLE III RENT.........................................................................................      11
         3.1    Construction Period Rent; Base Rent......................................................      11
         3.2    Additional Charges.......................................................................      12
         3.3    Absolute Triple Net Lease................................................................      13
         3.4    Lease Deposit............................................................................      13
         3.5    Lease Confirmation Letter................................................................      14
ARTICLE IV IMPOSITIONS...................................................................................      14
         4.1    Payment of Impositions...................................................................      15
         4.2    Adjustment of Impositions................................................................      15
         4.3    Utility Charges..........................................................................      15
         4.4    Insurance Premiums.......................................................................      16
ARTICLE V NO TERMINATION.................................................................................      16
         5.1    Triple Net Lease.........................................................................      16
ARTICLE VI OWNERSHIP OF LAND AND PERSONAL PROPERTY.......................................................      16
         6.1    Ownership of the Land and Improvements...................................................      16
         6.2    Tenant's Personal Property...............................................................      17
ARTICLE VII CONDITION AND USE OF LEASED PROPERTY.........................................................      17
         7.1    Condition of the Leased Property.........................................................      17
         7.2    Use of the Leased Property...............................................................      17
         7.3    Landlord to Grant Easements..............................................................      19
ARTICLE VIII LEGAL AND INSURANCE REQUIREMENTS............................................................      19
         8.1    Compliance with Legal and Insurance Requirements.........................................      19
         8.2    Legal Requirement Covenants..............................................................      19
         8.3    Hazardous Materials......................................................................      20
         8.4    Healthcare Laws..........................................................................      21
         8.5    Representations and Warranties...........................................................      22
         8.6    Single Purpose Entity....................................................................      22
         8.7    Organizational Documents.................................................................      22
ARTICLE IX REPAIRS; RESTRICTIONS.........................................................................      23
         9.1    Maintenance and Repair...................................................................      23
         9.2    Encroachments; Restrictions..............................................................      25
ARTICLE X CAPITAL ADDITIONS..............................................................................      25
         10.1   Construction of Capital Additions to the Leased Property.................................      25
         10.2   Capital Additions Financed by Tenant.....................................................      27
         10.3   Capital Additions Financed by Landlord...................................................      28
         10.4   Remodeling and Non-Capital Additions.....................................................      30
ARTICLE XI LIENS.........................................................................................      30
</TABLE>

                                       i

<PAGE>

                                Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
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                                                                                                              ----
<S>                                                                                                           <C>
         11.1   Liens....................................................................................      30
ARTICLE XII PERMITTED CONTESTS...........................................................................      31
         12.1   Permitted Contests.......................................................................      31
ARTICLE XIII INSURANCE...................................................................................      32
         13.1   General Insurance Requirements...........................................................      32
         13.2   Additional Insurance.....................................................................      34
         13.3   Insurance During Construction Period.....................................................      35
         13.4   Waiver of Subrogation....................................................................      35
         13.5   Form of Insurance........................................................................      35
         13.6   Increase in Limits.......................................................................      35
         13.7   Blanket Policy...........................................................................      36
         13.8   No Separate Insurance....................................................................      36
ARTICLE XIV FIRE AND CASUALTY............................................................................      36
         14.1   Insurance Proceeds.......................................................................      36
         14.2   Reconstruction in the Event of Damage or Destruction Covered by Insurance................      37
         14.3   Reconstruction in the Event of Damage or Destruction Not Covered by Insurance............      38
         14.4   Tenant's Personal Property...............................................................      38
         14.5   Restoration of Tenant's Property.........................................................      38
         14.6   No Abatement of Rent.....................................................................      38
         14.7   Damage Near End of Term..................................................................      38
         14.8   Waiver...................................................................................      39
ARTICLE XV CONDEMNATION..................................................................................      39
         15.1   Definitions..............................................................................      39
         15.2   Parties' Rights and Obligations..........................................................      39
         15.3   Total Taking.............................................................................      39
         15.4   Partial Taking...........................................................................      39
         15.5   Restoration..............................................................................      40
         15.6   Award Distribution.......................................................................      40
         15.7   Temporary Taking.........................................................................      40
ARTICLE XVI DEFAULT......................................................................................      40
         16.1   Events of Default........................................................................      40
         16.2   Covenants and Events of Default..........................................................      43
         16.3   Remedies.................................................................................      44
         16.4   Additional Expenses......................................................................      46
         16.5   Waiver...................................................................................      47
         16.6   Application of Funds.....................................................................      47
         16.7   Notices by Landlord......................................................................      47
         16.8   Landlord's Contractual Security Interest.................................................      47
         16.9   Remedies Cumulative......................................................................      48
ARTICLE XVII LANDLORD DEFAULT............................................................................      48
         17.1   Landlord Default.........................................................................      49
</TABLE>

                                      -2-

<PAGE>

                                Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                              Page
                                                                                                              ----
<S>                                                                                                           <C>
         17.2   Tenant's Remedy..........................................................................      49
ARTICLE XVIII HOLDING OVER...............................................................................      50
         18.1   Holding Over.............................................................................      50
ARTICLE XIX RISK OF LOSS.................................................................................      50
         19.1   Risk of Loss.............................................................................      50
ARTICLE XX INDEMNIFICATION...............................................................................      50
         20.1   Indemnification..........................................................................      50
ARTICLE XXI SUBLETTING; ASSIGNMENT AND SUBORDINATION.....................................................      51
         21.1   Subletting; Assignment and Subordination.................................................      51
         21.2   Attornment...............................................................................      52
         21.3   Sublease Limitation......................................................................      53
         21.4   Subordination............................................................................      53
ARTICLE XXII OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS; NOTICES AND OTHER CERTIFICATES................      53
         22.1   Estoppel Certificate.....................................................................      53
         22.2   Financial Statements.....................................................................      54
         22.3   Notices Regarding Licenses...............................................................      54
ARTICLE XXIII INSPECTIONS AND FEES.......................................................................      55
         23.1   Inspection Fee...........................................................................      55
ARTICLE XXIV TRANSFERS BY LANDLORD.......................................................................      55
         24.1   Transfer by Landlord.....................................................................      55
ARTICLE XXV QUIET ENJOYMENT..............................................................................      55
         25.1   Quiet Enjoyment..........................................................................      55
ARTICLE XXVI NOTICES.....................................................................................      56
         26.1   Notices..................................................................................      56
ARTICLE XXVII APPRAISAL..................................................................................      57
         27.1   Appraisal................................................................................      57
ARTICLE XXVIII FINANCING OF THE LEASED PROPERTY..........................................................      59
         28.1   Financing by Landlord....................................................................      59
         28.2   Financing by Tenant......................................................................      59
ARTICLE XXIX SUBORDINATION AND NON-DISTURBANCE...........................................................      60
         29.1   Subordination, Non-Disturbance...........................................................      60
ARTICLE XXX LICENSES.....................................................................................      61
         30.1   Maintaining Licenses.....................................................................      61
         30.2   Transfers................................................................................      61
         30.3   Cooperation..............................................................................      62
         30.4   No Encumbrance...........................................................................      62
         30.5   Notices..................................................................................      62
ARTICLE XXXI COMPLIANCE WITH HEALTHCARE LAWS.............................................................      63
         31.1   Compliance...............................................................................      63
ARTICLE XXXII MISCELLANEOUS..............................................................................      64
         32.1   General..................................................................................      64
         32.2   Governing Law............................................................................      64
</TABLE>

                                      -3-

<PAGE>

                                Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
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<S>                                                                                                           <C>
         32.3   Transfer of Licenses.....................................................................      64
         32.4   Landlord's Expenses......................................................................      64
         32.5   Entire Agreement; Modifications..........................................................      65
         32.6   Future Financing.........................................................................      65
         32.7   Cash Injection...........................................................................      65
         32.8   Additional Letter of Credit..............................................................      65
         32.9   Landlord Securities Offering and Filings.................................................      66
         32.10  Non-Recourse as to Landlord..............................................................      66
         32.11  Counterparts.............................................................................      66
         32.12  No Waiver................................................................................      66
         32.13  Surrender................................................................................      66
         32.14  No Merger of Title.......................................................................      66
ARTICLE XXXIII MEMORANDUM OF LEASE.......................................................................      67
         33.1   Memorandum...............................................................................      67
</TABLE>

                                      -4-

<PAGE>

                               SUBLEASE AGREEMENT

      THIS SUBLEASE AGREEMENT (this "Lease") is dated as of the _____ day of
June, 2005, but effective as of June 1, 2005, and is between MPT OF NORTH
CYPRESS, L.P., "(Landlord") a Delaware limited partnership, having its principal
office at 1000 Urban Center Drive, Suite 501, Birmingham, Alabama, 35242, and
NORTH CYPRESS MEDICAL CENTER OPERATING COMPANY, LTD. ("Tenant"), a Texas limited
partnership, having its principal office at 6830 North Eldridge Parkway, Suite
406, Houston, Texas 77041.

                                   WITNESSETH:

      WHEREAS, Land Owner is the owner of the fee simple interest in that
certain real property located in Harris County, Texas, which real property is
more particularly described on EXHIBIT A attached hereto and incorporated herein
by reference (the "Land");

      WHEREAS, Northeast Parcel Owner is the owner of the fee simple interest in
that certain real property located adjacent to portions of the Land, which real
property is more particularly described on EXHIBIT B attached hereto and
incorporated herein by reference (the "Northeast Parking Parcel");

      WHEREAS, Landlord and Northeast Parcel Owner, on or about the date hereof,
entered into the Parking Area Ground Lease pursuant to which Landlord leased and
rented from Northeast Parcel Owner the Northeast Parking Parcel;

      WHEREAS, Landlord and Land Owner, on or about the date hereof, entered
into the Hospital Tract Ground Lease pursuant to which Landlord leased and
rented from Land Owner the Land;

      WHEREAS, pursuant to the Ground Leases, Landlord has the right to
construct improvements on the Land and the Northeast Parking Parcel;

      WHEREAS, Landlord intends to sublease the Land and the Northeast Parking
Parcel to Tenant and Tenant intends to build on the Land and the Northeast
Parking Parcel the Hospital Improvements, all as more particularly set forth
herein; and

      WHEREAS, of even date herewith, Lender and Tenant has consummated the
Loan, the proceeds of which shall be utilized by Tenant for the construction of
the Hospital Improvements.

      NOW THEREFORE, for and in consideration of the premises, the covenants and
representations herein made and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, Landlord and
Tenant do hereby agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

<PAGE>

      For all purposes of this Lease, except as otherwise expressly provided or
unless the context otherwise requires, (a) the terms defined in this Article
have the meanings assigned to them in this Article and include the plural as
well as the singular, (b) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with GAAP as at the time applicable,
(c) all references in this Lease to designated "Articles", "Sections" and other
subdivisions are to the designated Articles, Sections and other subdivisions of
this Lease, and (d) the words "herein", "hereof" and "hereunder" and other words
of similar import refer to this Lease as a whole and not to any particular
Article, Section or other subdivision:

      Additional Charges: As defined in Section 3.2.

      Additional Letter of Credit: As defined in Section 32.8.

      Adjustment Date: As defined in Section 3.1(c).

      Affiliate: When used with respect to any corporation, limited liability
company, or partnership, any person, corporation, limited liability company,
partnership or other legal entity, which, directly or indirectly, controls or is
controlled by or is under common control with such corporation, limited
liability company, or partnership. For the purposes of this definition,
"control" (including the correlative meanings of the terms "controlled by" and
"under common control with"), as used with respect to any person, corporation,
limited liability company, partnership or other legal entity, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such person, corporation, limited
liability company, partnership or other legal entity, through the ownership of
voting securities, partnership interests or other equity interests.

      Award: As defined in Section 15.1(c).

      Base Rent: As defined in Section 3.1(b).

      Building: The sixty-four (64) bed, two hundred twenty-five thousand
(225,000) gross square feet general acute care hospital building which Tenant is
to construct on the Land.

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

      Capital Addition: One or more new buildings or one or more additional
structures annexed to any portion of any of the Hospital Improvements, which are
constructed on any parcel or portion of the Land during the Term, including the
construction of a new wing or new story; provide no improvements which are
construed pursuant to the Construction Loan Agreement shall be deemed to be a
Capital Addition.

      Capital Addition Cost: The cost of any Capital Addition whether or not
paid for by Tenant or Landlord. Such cost shall include (a) the cost of
construction of the Capital Addition, including site preparation and
improvement, materials, labor, supervision and certain related design,
engineering and architectural services, the cost of any fixtures, the cost of
construction financing and miscellaneous costs approved by Landlord, (b) if
agreed to by Landlord in writing in advance, the cost of any land contiguous to
the Leased Property purchased for the purpose of placing thereon the Capital
Addition or any portion thereof or for providing means of access thereto, or
parking facilities therefor, including the cost of surveying the same, (c) the
cost of insurance, real estate taxes, water and sewage charges and other
carrying charges for such

                                      -2-

<PAGE>

Capital Addition during construction, (d) the cost of title insurance, (e)
reasonable fees and expenses of legal counsel, (f) filing, registration and
recording taxes and fees, (g) documentary stamp taxes, transfer taxes or other
similar charges, if any, and (h) all reasonable costs and expenses of Landlord
and any Lending Institution which has committed to finance the Capital Addition,
including, but not limited to, (i) the reasonable fees and expenses of their
respective legal counsel, (ii) all printing expenses, (iii) the amount of any
filing, registration and recording taxes and fees, (iv) documentary stamp taxes,
intangible taxes and recording taxes, if any, (v) title insurance charges,
appraisal fees, if any, (vi) rating agency fees, if any, and (vii) commitment
fees, if any, charged by any Lending Institution advancing or offering to
advance any portion of the financing for such Capital Addition.

      Capital Improvement Reserve: As defined in Section 9.1(e).

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

      Commencement Date: As defined in Article II.

      Completion: The terms "completion," "complete construction," "completion
of construction" and similar phrases means the date upon which the Project
Architect (as defined in the Construction Loan Agreement) shall have delivered
to Landlord a certification stating that, except for typical punch list items,
the construction of the Hospital Improvements has been completed in accordance
with the plans and specifications as approved pursuant to the Construction Loan
Agreement.

      Completion Date: The earlier to occur of (i) the date on which Tenant
obtains its Medicare billing number, or (ii) one hundred twenty (120) days
subsequent to the date of the issuance of a final certificate of occupancy for
the Building by the appropriate governmental authority; but in no event later
that the maturity date of the Loan.

      Condemnation: As defined in Section 15.1(a).

      Condemnor: As defined in Section 15.1(d).

      Consolidated Net Worth: At any time, the sum of the following for Tenant
and its respective consolidated subsidiaries on a consolidated basis determined
in accordance with GAAP.

                  (a) the amount of capital or stated capital (after deducting
      the cost of any treasury shares), plus

                  (b) the amount of capital surplus and Retained Earnings (or,
      in the case of a capital surplus or Retained Earnings deficit, minus the
      amount of such deficit), minus

                  (c) the sum of the following (without duplication of
      deductions in respect of items already deducted in arriving at surplus and
      retained earnings): (i) unamortized debt discount and expense and (ii) any
      write-up in book value of assets resulting from a revaluation thereof
      pursuant to GAAP subsequent to the most recent Income Statements prior to
      the date thereof, except any net write-up in value of foreign currency in
      accordance with GAAP; any write-up resulting from reversal of a reserve
      for bad debts or depreciation; and any write-up resulting from a change in
      methods of accounting for inventory.

                                      -3-

<PAGE>

      Construction Loan Agreement: That certain Construction Loan Agreement
dated of even date herewith between Lender and Tenant, which agreement was
executed and delivered in connection with the Loan.

      Construction Period: That period of time commencing on the date on which
the first advancement of funds are disbursed under the Construction Loan
Agreement and ending on the Completion Date.

      Construction Period Rent: As defined in Section 3.1(a).

      Consumer Price Index: The Consumer Price Index, all urban consumers, all
items, U.S. City Average, published by the United States Department of Labor,
Bureau of Labor Statistics, in which 1982-1984 equals one hundred (100). If the
Consumer Price Index is discontinued or revised during the Term, such other
governmental index or computation with which it is replaced shall be used in
order to obtain substantially the same result as would be obtained if the
Consumer Price Index had not been discontinued or revised.

      Cost Component: As defined in Section 3.1(a).

      Costs Confirmation: As defined in Section 3.1(d).

      Credit Enhancements: All security deposits, security interests, letters of
credit, pledges, guaranties, prepaid rent or other sums, deposits or interests
held by Tenant, if any, with respect to the Leased Property, the Secondary
Leases or the Lessees.

      Date of Taking: As defined in Section 15.1(b).

      Deposit Reduction Criteria: As defined in Section 3.4(d).

      EBITDAR: For any calculation period, earnings for such period before the
deduction of interest, taxes, depreciation, amortization and rent for such
period, as those terms are determined in accordance with GAAP.

      EBITDAR Lease Coverage: For any calculation period, EBITDAR for such
period divided by the sum for such period of all scheduled lease payments, debt
service payments (including payments of principal and interest), and payments to
fund required reserves.

      EBITDAR Total Fixed Charge Coverage: For any calculation period, EBITDAR
for such period divided by payments of Base Rent for such period.

      Encumbrances: As defined in Article XXVIII.

      Event of Default: As defined in Section 16.1.

      Expansion Improvements: As defined in Section 10.1(a).

      Facility: The licensed general acute care hospital facility to be operated
in the Building, all improvements constructed in connection therewith and all
licenses and other intangibles necessary for the operation of such hospital
facility.

      Facility Mortgage: As defined in Section 13.1.

      Facility Mortgagee: As defined in Section 13.1.

      Fair Market Value: The price at which property would change hands between
a willing seller and willing buyer, neither being under any compulsion to buy or
sell and both having full knowledge of all facts relevant to the property.

                                      -4-

<PAGE>

      Fair Market Value of the Leased Property and the Hospital Improvements:
The Fair Market Value of the Leased Property shall at any time be its Fair
Market Value, including all Capital Additions, and shall:

                  (a) be determined in accordance with the appraisal procedures
      set forth in Article XXVII or in such other manner as shall be mutually
      acceptable to Landlord and Tenant;

                  (b) not take into account any reduction in value resulting
      from any indebtedness to which the Leased Property is subject and which
      encumbrance Tenant or Landlord is otherwise required to remove pursuant to
      any provision of this Lease or agrees to remove at or prior to the closing
      of the transaction as to which the Fair Market Value of the Leased
      Property determination is being made (the positive or negative effect on
      the value of the Leased Property attributable to the interest rate,
      amortization schedule, maturity date, prepayment penalty and other terms
      and conditions of any Encumbrance on the Leased Property, which is not so
      required or agreed to be removed shall be taken into account in
      determining the Fair Market Value of the Leased Property);

                  (c) assume this Lease is not terminated prior to the
      expiration of the Fixed Term; and

                  (d) be based solely on the rents and other revenues generated
      and to be generated pursuant to this Lease without any regard to Tenant's
      operations.

      Fair Market Added Value: The Fair Market Value of the Leased Property and
the Hospital Improvements (including all Capital Addition) less the Fair Market
Value of the Leased Property and the Hospital Improvements determined as if no
Capital Addition paid for by Tenant had been constructed.

      Fair Market Value Purchase Price: The Fair Market Value of the Leased
Property and the Hospital Improvements less the Fair Market Added Value.

      Fiscal Year: The fiscal year for this Lease shall be the twelve (12) month
period from January 1 to December 31.

      Fixed Term: As defined in Article II.

      Fixtures: As defined in Article II.

      Full Replacement Cost: As defined in Section 13.1.

      GAAP: Generally accepted accounting principles as consistently applied in
the United States and in effect from time to time.

      Ground Leases: The Hospital Tract Ground Lease and the Parking Area Ground
Lease.

      Ground Rent Component: As defined in Section 3.1(a).

      Hazardous Materials: Any substance, including without limitation, asbestos
or any substance containing asbestos and deemed hazardous under any Hazardous
Materials Law, the group of organic compounds known as polychlorinated
biphenyls, flammable explosives, radioactive materials, infectious wastes,
biomedical and medical wastes, chemicals known to cause cancer or reproductive
toxicity, pollutants, effluents, contaminants, emissions or related

                                      -5-

<PAGE>

materials and any items included in the definition of hazardous or toxic wastes,
materials or substances under any Hazardous Materials Law.

      Hazardous Materials Laws: All local, state and federal laws relating to
environmental conditions and industrial hygiene, including, without limitation,
the Resource Conservation and Recovery Act of 1976 ("RCRA"), the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as
amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA"),
the Hazardous Materials Transportation Act, 49 U.S.C. Section 6901, et seq., the
Federal Water Pollution Control Act, 33 U.S.C. Sections 1251 et seq., the Clean
Air Act, 42 U.S.C. Sections 741 et seq., the Clean Water Act, 33 U.S.C. Section
7401, et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601-2629,
the Safe Drinking Water Act, 42 U.S.C. Sections 300f-300j, and all similar
federal, state and local environmental statutes, ordinances and the regulations,
orders, or decrees now or hereafter promulgated thereunder.

      Healthcare Laws: All rules and regulations under the False Claims Act (31
U.S.C. Section 3729 et seq.), the Anti-Kickback Act of 1986 (41 U.S.C. Section
51 et seq.), the Federal Health Care Programs Anti-Kickback statute (42 U.S.C.
Section 1320a-7a(b)), the Ethics in Patient Referrals Act of 1989, as amended
(Stark Law) (42 U.S.C. 1395nn), the Civil Monetary Penalties Law (42 U.S.C.
Section 1320a-7a), or the Truth in Negotiations (10 U.S.C. Section 2304 et
seq.), Health Care Fraud (18 U.S.C. 1347), Wire Fraud (18 U.S.C. 1343), Theft or
Embezzlement (18 U.S.C. 669), False Statements (18 U.S.C. 1001), False
Statements (19 U.S.C. 1035), and Patient Inducement Statute, and equivalent
state statutes and any and all rules or regulations promulgated by governmental
entities with respect to any of the foregoing.

      Hospital Improvements: The Building, the Fixtures and other improvements
of every kind including, but not limited to, alleyways and connecting tunnels,
sidewalks, utility pipes, conduits and lines (on-site and off-site), parking
areas and roadways appurtenant to such buildings and structures presently or
hereafter situated upon the Land and related to the Building.

      Hospital Tract Ground Lease: That certain Net Ground Lease (Hospital
Tract) dated of even date herewith by and between Land Owner, as landlord, and
Landlord, as tenant, pursuant to which the Land is leased to Landlord.

      Impositions: Collectively, all civil monetary penalties, fines and
overpayments imposed by state and federal regulatory authorities, all taxes
(including, without limitation, all capital stock and franchise taxes of
Landlord, all ad valorem, sales and use, single business, gross receipts,
transaction privilege, rent or similar taxes), assessments (including, without
limitation, all assessments, charges and costs imposed under the Permitted
Exceptions, 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 within the Term), ground rents, water, sewer or other rents and
charges, excises, tax levies, fees (including, without limitation, license,
permit, inspection, authorization and similar fees), and all other governmental
charges, in each case whether general or special, ordinary or extraordinary, or
foreseen or unforeseen, of every character in respect of the Leased Property
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 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, (b) the Leased Property
or any part thereof or any rent there from or any estate, right, title or
interest therein, or (c) any occupancy, operation, use or possession of, sales
from, or activity conducted on, or in connection with, the Leased Property

                                      -6-

<PAGE>

or the leasing or use of the Leased Property or any part thereof; provided,
however, nothing contained in this Lease shall be construed to require Tenant to
pay (1) any tax based on net income (whether denominated as a franchise or
capital stock, financial institutions or other tax) imposed on Landlord, or (2)
any transfer or net revenue tax of Landlord, or (3) any tax imposed with respect
to the sale, exchange or other disposition by Landlord of any portion of the
Leased Property or the proceeds thereof, or (4) except as expressly provided
elsewhere in this Lease, any principal or interest on any Encumbrance on the
Leased Property, except to the extent that any tax, assessment, tax levy or
charge which Tenant is obligated to pay pursuant to the first sentence of this
definition and which is in effect at any time during the Term is totally or
partially repealed, and a tax, assessment, tax levy or charge set forth in
clause (1) or (2) is levied, assessed or imposed expressly in lieu thereof, in
which case Tenant shall pay.

      Income Statements: For any fiscal year or other accounting period for
Tenant and its respective consolidated subsidiaries, statements of earnings and
retained earnings and of changes in financial position for such period and for
the period from the beginning of the respective Fiscal Year to the end of such
period and the related balance sheet as at the end of such period, together with
the notes thereto, all in reasonable detail and setting forth in comparative
form the corresponding figures for the corresponding period in the preceding
fiscal year, and prepared in accordance with GAAP.

      Insurance Requirements: All terms of any insurance policy required by this
Lease or any such additional insurance which Lessor may reasonably require and
all requirements of the issuer of any such policies.

      Land: As defined in the first "WHEREAS" clause.

      Land Owner: North Cypress Property Holdings, Ltd., a Texas limited
partnership which is an Affiliate of Tenant.

      Landlord: As defined in the Preamble and any successor or assign thereof.

      Landlord Default: As defined in Section 17.1.

      Landlord's Notice Address: As defined in Section 13.4.

      Lease: As defined in the Preamble.

      Lease Confirmation Letter: As defined in Section 3.5.

      Lease Deposit: As defined in Section 3.4.

      Lease Assignment: That certain Assignment of Rents and Leases dated on or
about the Commencement Date executed by Tenant to Landlord, pursuant to the
terms of which Tenant has assigned to Landlord each of the Secondary Leases and
Credit Enhancements, if any, as security for the obligations of Tenant under
this Lease, and any other obligations of Tenant to Landlord, or any Affiliate of
Tenant to Landlord.

      Lease Year: A twelve (12) month period commencing on the Commencement Date
or on each anniversary date thereof, as the case may be.

      Leased Property: As defined in Article II.

      Legal Requirements: All federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting

                                      -7-

<PAGE>

Tenant's operation of its business on the Leased Property, the Leased Property
or the construction, use or alteration of the Hospital Improvements (including,
without limitation, the Americans With Disabilities Act and Section 504 of the
Rehabilitation Act of 1973) whether now or hereafter enacted and in force,
including any which may (a) require repairs, modifications, or alterations in or
to the Leased Property, or (b) in any way adversely affect the use and enjoyment
thereof, and all permits, licenses, authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained
in any instruments, either of record or known to Tenant (other than encumbrances
created by Landlord without the consent of Tenant), at any time in force
affecting the Leased Property.

      Lender: MPT Finance Company, LLC, a Delaware limited liability company,
which is an Affiliate of Landlord.

      Lending Institution: Any insurance company, federally insured commercial
or savings bank, national banking association, savings and loan association,
employees' welfare, pension or retirement fund or system, corporate
profit-sharing or pension trust, college or university, or real estate
investment trust, including any corporation qualified to be treated for federal
tax purposes as a real estate investment trust, having a net worth of at least
$50,000,000.

      Lessees: The lessees or tenants under the Secondary Leases.

      Letter of Credit: As defined in Section 3.4(b).

      Licenses: As defined in Section 30.1.

      Loan: That certain construction loan made by Lender to Tenant in the
original principal amount of Sixty-Four Million Twenty-Eight Thousand and No/100
Dollars ($64,028,000.00), the proceeds of which, pursuant to the Construction
Loan Agreement, shall be disbursed to Tenant for payment of costs incurred in
connection with the construction of the Hospital Improvements.

      Management Agreement: Any contracts and agreements for the management of
any part of the Leased Property, including, without limitation, the Land and the
Hospital Improvements and the operations of the Facility.

      Management Company: Any person, firm, corporation or other entity or
individual who or which will manage any part of the Leased Property pursuant to
a Management Agreement.

      Medicaid: The medical assistance program established by the State under
Title XIX of the Social Security Act (42 U.S.C. Sections 1396 et seq.) and any
statute succeeding thereto.

      Medicare: The health insurance program for the aged and disabled
established by Title XVIII of the Social Security Act (42 U.S.C. Sections 1395
et seq.) and any statute succeeding thereto.

      Non-Capital Additions: As defined in Section 10.4.

      Northeast Parcel Owner: Northern Healthcare Land Ventures, Ltd., a Texas
limited partnership which is an Affiliate of Tenant.

      Northeast Parking Parcel: As defined in the second (2nd) "WHEREAS" clause.

      Officer's Certificate: A certificate of Tenant signed by the Chairman of
the Board of Directors, the President, any Vice President or the Treasurer of
Tenant or another officer authorized to so sign by the Board of Directors or
other governing body of Tenant, or any other

                                      -8-

<PAGE>

person whose power and authority to act has been authorized by delegation in
writing by any of the persons holding the foregoing offices.

      Organizational Documents: As defined in Section 8.7.

      Overdue Rate: On any date, the rate per annum which is the greater of (i)
eighteen percent (18%) or (ii) the highest rate allowed by the laws of the
State.

      Parking Area Ground Lease: That certain Net Ground Lease (Northeast
Parking Parcel) dated effective as of June 1, 2005, by and between Northern
Healthcare Land Ventures, Ltd., as landlord, and Landlord, as tenant, pursuant
to which the Northeast Parking Parcel is leased to Landlord.

      Permitted Exceptions: As defined in Article II.

      Primary Intended Use: As defined in Section 7.2(c).

      Prime Rate: The annual rate announced by Citibank in New York, New York,
to be the prime rate for 90-day unsecured loans to its United States corporate
borrowers of the highest credit standing, as in effect from time to time.

      Purchase Agreement: The Purchase and Sale Agreement dated of even date
herewith, between Tenant and Landlord, relating to the acquisition of the
Hospital Improvements by Landlord from Tenant.

      REA: That certain Reciprocal Easement Agreement and Declaration of
Covenants, Conditions and Restrictions for Development and Operation of the
North Cypress Medical Center Campus, dated effective as of June 1, 2005, by and
among Northern Healthcare Land Ventures, Ltd., Northern Healthcare Land
Ventures-II, Ltd. and Land Owner, recorded or to be recorded in the land records
of Harris County, Texas. The REA encumbers the Land.

      Release: As defined in Section 8.3(b).

      Rent: Collectively, the Base Rent, the Construction Period Rent and the
Additional Charges.

      Request: As defined in Section 10.3(a).

      Retained Earnings: The accumulated undisturbed earnings of the Company
retained for future needs for future distributions to owners of the Company.

      Schedule: As defined in Section 3.1(c).

      Secondary Leases: All leases, subleases and other rental agreements
(written or verbal, now or hereafter in effect), if any, that grant a possessory
interest in and to any space in the Leased Property and/or the Hospital
Improvements, or that otherwise have rights with regard to the Leased Property
and/or the Hospital Improvements, and all Credit Enhancements, if any, held in
connection therewith.

      Security Agreement: That certain Security Agreement to be dated on or
about the Commencement Date executed by Tenant to Landlord, pursuant to the
terms of which Tenant has granted to Landlord a first lien and security interest
in all of Tenant's rights under this Lease and in and to certain of Tenant's
Personal Property and to all of the Licenses.

      Single Purpose Entity: An entity which (i) exists solely for the purpose
of leasing Lease Property and operating the Facility, (ii) conducts business
only in its own name, (iii) does not

                                      -9-

<PAGE>

engage in any business other than the operation of the Facility and those
ancillary services normally performed by a hospital, (iv) does not hold,
directly or indirectly, any ownership interest (legal or equitable) in any
entity or any real or personal property other than the interest in the Leased
Property which it leases from Landlord hereunder, (v) does not have any assets
other than those related to its interest in the Leased Property and does not
have any debt other than as permitted by this Lease and does not guarantee or
otherwise obligate itself with respect to the debts of any other person or
entity, (vi) has its own separate books, records, accounts, financial statements
and tax returns (with no commingling of funds or assets), (vii) holds itself out
as being a company separate and apart from any other entity, and (viii) observes
limited liability company/partnership/corporate formalities, as the case may be,
independent of any other entity.

      State: The state in which the Land is located.

      Taking: A taking or voluntary conveyance during the Term of all or part of
the Leased Property, or any interest therein or right accruing thereto or use
thereof, as the result of, or in settlement of, any Condemnation or other
eminent domain proceeding affecting the Leased Property whether or not the same
shall have actually been commenced.

      Tenant: As defined in the Preamble and any successor and assign herein
permitted.

      Tenant's Personal Property: All machinery, equipment, furniture,
furnishings, movable walls or partitions, computers, trade fixtures or other
personal property, and consumable inventory and supplies, used or useful in the
operation of the Facility, including without limitation, all items of furniture,
furnishings, equipment, supplies and inventory, and Tenant's operating licenses
but excluding Tenant's accounts receivables and any items included within the
definition of Fixtures.

      Term: The actual duration of this Lease, taking into account any
termination.

      Test Rate: As defined in Section 10.2(c)(ii).

      TDH: Texas Department of Health.

      Total Development Costs: The total development costs for the development
of the Hospital Improvements as set forth in the Construction Loan Agreement
(including, without limitation, the (i) all amounts advanced or paid pursuant to
the Construction Loan Agreement, and (ii) all other costs agreed by Lender and
Tenant to be included in Total Development Costs) [including, without
limitation, all fees and expenses paid by Landlord in connection with the
construction, development and operation of the Leased Property advanced or paid
by Landlord].

      Unsuitable for its Primary Intended Use: By reason of damage or
destruction, or a partial Taking by Condemnation, the Facility cannot be
operated on a commercially practicable basis for its Primary Intended Use,
taking into account, all relevant factors, and the effect of such damage or
destruction or partial Taking.

                                   ARTICLE II

                            LEASED PROPERTY AND TERM

      2.1 LEASED PROPERTY AND TERM. Upon and subject to all of the terms and
conditions set forth in this Lease, Landlord leases to Tenant and Tenant rents
from Landlord the following property (collectively, the "Leased Property"):

                                      -10-

<PAGE>

            (a) the Land;

            (b) the Northeast Parking Parcel; and

            (c) all easements, rights and appurtenances relating to the Land and
      the Northeast Parking Parcel.

SUBJECT, HOWEVER, to the matters set forth on EXHIBIT C attached hereto and
incorporated herein by reference (the "Permitted Exceptions"), Tenant shall have
and hold the Leased Property for a fixed term (the "Fixed Term") commencing on
June 1, 2005 (the "Commencement Date") and ending at midnight on May 1, 2104,
unless earlier terminated as a result of Landlord's acquisition of the Hospital
Improvements from Tenant.

      2.2 PURCHASE OF HOSPITAL IMPROVEMENTS. Landlord and Tenant, of even date,
have entered into that certain Purchase Agreement pursuant to which Landlord has
the right, upon the terms and conditions therein set forth, to purchase the
Hospital Improvements from Tenant. This Lease shall terminate automatically upon
the conveyance of the Hospital Improvements from Tenant to Landlord.

      2.3 REA RESTRICTIONS. Pursuant to Section 9.03 of the REA, Tenant is
hereby notified that the restrictions, regulations and conditions regarding
operation and use of the Campus (as defined in the REA), a copy of which are
attached hereto as EXHIBIT E and by this reference made a part hereof, effect
the Premises and that Tenant must comply with the same.

                                  ARTICLE III

                                      RENT

      3.1 CONSTRUCTION PERIOD RENT; BASE RENT. Tenant shall pay to Landlord, in
advance and without notice, demand, set off or counterclaim, in lawful money of
the United States of America, at Landlord's address set forth herein or at such
other place or to such other person, firms or entity as Landlord from time to
time may designate in writing, rent during the Term, as follows:

            (a) CONSTRUCTION PERIOD RENT: During the Construction Period, Tenant
      shall pay Landlord, in consecutive monthly installments, a monthly amount
      equal to the sum of (A) the product of (i) ten and one-half percent
      (10.5%) multiplied by (ii) the total amount of funds disbursed under the
      Construction Loan Agreement as of the date such payment is due, divided by
      twelve (12) [the portion of the Base Rent specified in this clause (A)
      being referred to herein as the "Cost Component"], plus (B) the amount set
      forth in Schedule 3 for the applicable period [the portion of the Base
      Rent specified in this clause (B) being referred to herein as the "Ground
      Rent Component"] [collectively, the "Construction Period Rent"]. The
      Construction Period Rent shall commence as of June 1, 2005.

            (b) BASE RENT: Subject to adjustment as provided in Sections 3.1(c)
      and 10.3(b)(iv), from and after the Completion Date and throughout the
      remainder of the Term, Tenant shall pay Landlord rent (the "Base Rent") in
      an amount equal to the sum of

                                      -11-

<PAGE>

      (A) ten and one-half percent (10.5%) per annum of the Total Development
      Costs [the portion of the Base Rent specified in this clause (A) also
      being referred to herein as the "Cost Component"], plus (B) the amount set
      forth in Schedule 3 for the applicable period [the portion of the Base
      Rent specified in this clause (B) also being referred to herein as the
      "Ground Rent Component"]. Base Rent shall be payable in advance in equal,
      consecutive monthly installments on the first (1st) day of each calendar
      month of the Term, commencing on the first (1st) day of the month
      immediately following the Completion Date (prorated as to any partial
      month).

            (c) ADJUSTMENT OF BASE RENT: Commencing on the first January 1
      subsequent to the Commencement Date, and on each January 1 thereafter
      (each an "Adjustment Date") during the Term, the applicable Cost Component
      of the Base Rent shall be increased by an amount equal to the greater of
      (A) two and one-half percent (2.5%) per annum of the prior year's Cost
      Component, or (B) the percentage by which the Consumer Price Index on the
      Adjustment Date shall have increased over the Consumer Price Index figure
      in effect on the then just previous Adjustment Date. If the previous
      year's Cost Component of Base Rent is for a partial year, such Cost
      Component shall be annualized for purposes of this adjustment.

            (d) SCHEDULE OF TOTAL DEVELOPMENT COSTS AND RENT ADJUSTMENTS: At the
      end of the Construction Period, Tenant and Lender shall agree upon the
      final Total Development Costs and Tenant shall deliver to Landlord written
      evidence of the amount agreed upon by Tenant and Lender (the "Costs
      Confirmation"). Upon receipt of the Costs Confirmation, Landlord shall
      calculate the Base Rent to be paid hereunder (the "Schedule") and provide
      a copy of the Schedule to Tenant. The Schedule will become a part of this
      Lease and be incorporated herein by reference. The Schedule shall be
      substituted, amended and adjusted by Landlord from time to time in its
      reasonable discretion as the rent payments and rent adjustments are
      calculated during the Term as provided herein, and, when delivered to
      Tenant, such substituted, amended and adjusted Schedule shall become a
      part of this Lease and incorporated herein by reference.

      3.2 ADDITIONAL CHARGES. In addition to the Base Rent and the Construction
Period Rent (a) Tenant also will pay and discharge as and when due and payable
all other amounts, liabilities, obligations and Impositions relating to the
Leased Property and the Facility, including, without limitation, all licensure
violations, civil monetary penalties and fines, all common area expenses and
other charges assessed against the Leased Property and/or the Facility pursuant
to the REA, and (b) in the event of any failure on the part of Tenant to pay any
of those items referred to in clause (a) above, Tenant also will promptly pay
and discharge every fine, penalty, interest and cost which may be added for
non-payment or late payment of such items (the items referred to in clauses (a)
and (b) above being referred to herein collectively as the "Additional
Charges"), and Landlord shall have all legal, equitable and contractual rights,
powers and remedies provided in this Lease, by statute or otherwise, in the case
of non-payment of the Additional Charges, as in the case of the Base Rent. If
any installment of Base Rent, Construction Period Rent or Additional Charges
shall not be paid within five (5) Business Days after its due date, Tenant will
pay Landlord on demand, as Additional Charges, a late charge (to the extent
permitted by law) computed at the Overdue Rate on the amount of such
installment, from the due date of such installment to the date of payment
thereof. To the extent that Tenant

                                      -12-

<PAGE>

pays any Additional Charges to Landlord pursuant to any requirement of this
Lease, Tenant shall be relieved of its obligation to pay such Additional Charges
to the entity to which they would otherwise be due.

      3.3 ABSOLUTE TRIPLE NET LEASE. The Rent shall be paid absolutely net to
Landlord, so that this Lease shall yield to Landlord the full amount of the
installments of Base Rent, Construction Period Rent and the payments of
Additional Charges throughout the Term, but subject to any other provisions of
this Lease which expressly provide for adjustment of Rent or other charges.
Tenant further acknowledges and agrees that all charges, assessments or payments
of any kind due and payable under the Permitted Exceptions shall be paid by
Tenant as such charges, assessments or payments become due and payable.

      3.4 LEASE DEPOSIT.

            (a) Tenant shall pay to Landlord on the Commencement Date a security
      deposit in the amount of Six Million Seven Hundred Twenty-Two Thousand
      Nine Hundred Forty and No/100 Dollars ($6,722,940.00) [the "Lease
      Deposit"]. The Lease Deposit shall be held by Landlord as security for the
      performance by Tenant of Tenant's covenants and obligations under this
      Lease. The Lease Deposit shall not be considered an advance payment of
      rental or a measure of Landlord's damages in case of default by Tenant.
      Landlord may, from time to time, without prejudice to any other remedy,
      use the proceeds thereof to make good any arrearages of Rent, to satisfy
      any other covenant or obligation of Tenant hereunder or to compensate
      Landlord for any other loss or damage which Landlord may suffer by reason
      of any default by Tenant. Following any such use of the Lease Deposit by
      Landlord, Tenant shall deliver to Landlord on demand an amount sufficient
      to restore the aggregate amount held by Landlord to the amount of the
      original Lease Deposit. If Tenant is not in default at the termination of
      this Lease, and has complied with all of the provisions of this Lease to
      be performed by Tenant, including surrender of the Leased Property in
      accordance with the provisions hereof, the Lease Deposit shall be returned
      by Landlord to Tenant, subject to any draws which have previously been
      made by Landlord against the Lease Deposit and not replenished by Tenant.
      Tenant will not assign or encumber Tenant's interest in the Lease Deposit,
      and neither Landlord nor Landlord's successors or assigns will be bound by
      any such attempted assignment or encumbrance of the Lease Deposit.
      Landlord is not required to hold the Lease Deposit in an interest bearing
      account; however in the event Landlord, at its sole election, shall hold
      the Lease Deposit in an interest bearing account; any interest earned on
      the Lease Deposit will be for the sole benefit of the Landlord and shall
      not in any way reduce any amounts owed by Tenant under the terms hereof.
      Except as otherwise provided under applicable law, Landlord may co-mingle
      the Lease Deposit with other funds of Landlord.

            (b) The Lease Deposit, at Tenant's option, may be made by the
      delivery to Landlord of a letter of credit in the required amount (the
      "Letter of Credit"). The Letter of Credit shall be unconditional,
      irrevocable and payable on demand, in the form attached hereto as EXHIBIT
      D and by this reference made a part hereof, and the issuing bank shall be
      Republic National Bank or a similar institution having comparable assets
      which is acceptable to Landlord. The term of the Letter of Credit shall be
      at least one (1) year and

                                      -13-

<PAGE>

      Tenant shall renew the Letter of Credit within thirty (30) days prior to
      the expiration of the term of the Letter of Credit and shall continue such
      renewals until such date which is sixty (60) days beyond the expiration of
      the Term. In the event Tenant shall fail to timely renew the Letter of
      Credit as provided above, Landlord shall have the right to draw upon the
      Letter of Credit. The funds received by Landlord from a drawing upon the
      Letter of Credit shall become the Lease Deposit and shall be held and
      utilized in accordance with the terms of this Agreement.

            (c) Within ten (10) days subsequent to Tenant's receipt of the
      Schedule, the amount of the Lease Deposit shall be re-calculated to be an
      amount equal to one (1) year of Base Rent. If the recalculated amount of
      the Lease Deposit shall be greater than the amount of Lease Deposit set
      forth in Section 3.4(a), then on or before the expiration of said ten (10)
      day period, Tenant shall deliver to Landlord an amount necessary to cause
      the Lease Deposit to equal the recalculated amount or in the event a
      Letter of Credit was provided as the Lease Deposit, Tenant shall deliver
      to Landlord a substitute Letter of Credit which conforms to the
      requirements of Section 3.4(b) and upon receipt of the substitute Letter
      of Credit, Landlord shall return to Tenant the original Letter of Credit.
      For purposes of this Lease, the Lease Deposit as recalculated pursuant to
      this Section 3.4(c) shall be deemed to be the "Lease Deposit".

            (d) At such time as the operations from the Facility have a
      sustained EBITDAR coverage of at least two (2) times Base Rent for two (2)
      consecutive Fiscal Years, (the "Deposit Reduction Criteria"), the amount
      of the Lease Deposit shall be reduced by one-half. Tenant shall notify
      Landlord in writing that Tenant has met the Deposit Reduction Criteria and
      shall provide Landlord with evidence satisfactory to Landlord that Tenant
      has met the Deposit Reduction Criteria. Thereafter, Landlord, if the Lease
      Deposit shall be a cash deposit, shall deliver one-half of the Lease
      Deposit to Tenant. In the event the Lease Deposit held by Landlord is a
      Letter of Credit, then upon receipt of the said notice and evidence and a
      substitute Letter of Credit, which satisfies the conditions of Section
      3.4(b), in an amount equal to six (6) months of Base Rent, Landlord shall
      return the original Letter of Credit to Tenant. For purposes of this
      Lease, the reduced Lease Deposit as provided above or the substituted
      Letter of Credit shall be deemed the "Lease Deposit".

      3.5 LEASE CONFIRMATION LETTER. Upon delivery and receipt of the Schedule,
Landlord and Tenant shall execute and deliver to each other a letter (the "Lease
Confirmation Letter") confirming the Completion Date and the final Total
Development Costs. The Lease Confirmation Letter will become a part of this
Lease and incorporated herein by reference and all payments under this Lease
determined by using the Total Development Costs shall be recalculated and
adjusted by the amount of the Total Development Costs as confirmed in the Lease
Confirmation Letter.

                                   ARTICLE IV

                                   IMPOSITIONS

                                      -14-

<PAGE>

      4.1 PAYMENT OF IMPOSITIONS. Subject to the terms of Article XII, Tenant
will pay, or cause to be paid, all Impositions before any fine, penalty,
interest or cost may be added for non-payment, such payments to be made directly
to the taxing authorities or other party to whom such Imposition is payable
where feasible, and Tenant will promptly, upon request, furnish to Landlord
copies of official receipts or other satisfactory proof evidencing such
payments. Tenant's obligation to pay the Impositions shall be deemed absolutely
fixed upon the date the Imposition becomes a lien upon the Leased Property or
any part thereof. If any Imposition may, at the option of the Landlord, lawfully
be paid in installments (whether or not interest shall accrue on the unpaid
balance of such Imposition), Tenant may exercise the option to pay the same (and
any accrued interest on the unpaid balance of such Imposition) in installments
and, in such event, shall pay such installments during the Term (subject to
Tenant's right of contest pursuant to the provisions of Article XII) as the same
respectively become due and before any fine, penalty, premium, further interest
or cost may be added thereto. Landlord, at its expense, shall prepare and file
all tax returns and reports as may be required by governmental authorities in
respect of Landlord's net income, gross receipts, franchise taxes and taxes on
its capital stock, and Tenant, at its expense and to the extent permitted by
applicable laws and regulations shall prepare and file all tax returns and
reports in respect of any Imposition as may be required by governmental
authorities. If any refund shall be due from any taxing authority in respect of
any Imposition paid by Tenant, the same shall be paid over to or retained by
Tenant if no Event of Default shall have occurred hereunder and be continuing.
Any such funds retained by Landlord due to an Event of Default shall be applied
as provided in Article XVI. 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 filing is required and
Tenant may legally make such filing. 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 giving
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, shall fully cooperate with Tenant
in such protest, appeal, or other action. Billings for reimbursement by Tenant
to Landlord of personal property taxes shall be accompanied by copies of a bill
therefor and payments thereof which identify the personal property with respect
to which such payments are made.

      4.2 ADJUSTMENT OF IMPOSITIONS. Impositions imposed in respect of 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.

      4.3 UTILITY CHARGES. Tenant will contract for, in its own name, and will
pay or cause to be paid all charges for electricity, power, gas, oil, water,
voice, video and data and other utilities used in the Facility during the Term,
and, unless paid as part of the Total Development

                                      -15-

<PAGE>

Costs, all impact and tap fees necessary for the development of the Leased
Property and the operation of the Facility.

      4.4 INSURANCE PREMIUMS. Tenant will contract for in its own name and will
pay or cause to be paid all premiums for the insurance coverage required to be
maintained pursuant to Article XIII during the Term.

                                   ARTICLE V

                                 NO TERMINATION

      5.1 TRIPLE NET LEASE. The parties hereto understand, acknowledge and agree
      that this is an absolute triple net lease. Tenant shall remain bound by
      this Lease in accordance with its terms and, without the consent of
      Landlord, shall neither take any action to modify, surrender or terminate
      this Lease, nor seek nor be entitled to any abatement, deduction,
      deferment or reduction of Rent, or set-off against the Rent. The
      respective obligations of Landlord and Tenant shall not be affected by
      reason of (a) any damage to, or destruction of, any Leased Property or any
      portion thereof from whatever cause or any Taking of the Leased Property
      or any portion thereof, (b) the lawful or unlawful prohibition of, or
      restriction upon, Tenant's use of the Leased Property, or any portion
      thereof, or the interference with such use by any person, corporation,
      partnership or other entity, or by reason of eviction by paramount title;
      (c) 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, (d) any bankruptcy, insolvency, reorganization,
      composition, readjustment, liquidation, dissolution, winding up or other
      proceedings affecting Landlord or any assignee or transferee of Landlord,
      or (e) for any other cause whether similar or dissimilar to any of the
      foregoing other than a discharge of Tenant from any such obligations as a
      matter of law. Tenant hereby specifically waives all rights, arising from
      any occurrence whatsoever, which may now or hereafter be conferred upon it
      by law to (i) modify, surrender or terminate this Lease or quit or
      surrender the Leased Property or any portion thereof, or (ii) entitle
      Tenant to any abatement, reduction, suspension or deferment of the Rent or
      other sums payable by Tenant hereunder, except as otherwise specifically
      provided in this Lease. The obligations of Landlord and Tenant hereunder
      shall be separate and independent covenants and agreements and the Rent
      and all other sums payable by Tenant hereunder shall continue to be
      payable in all events unless the obligations to pay the same shall be
      terminated pursuant to the express provisions of this Lease or by
      termination of this Lease other than by reason of an Event of Default.

                                   ARTICLE VI

                     OWNERSHIP OF LAND AND PERSONAL PROPERTY

      6.1 OWNERSHIP OF THE LAND AND IMPROVEMENTS. Tenant acknowledges that the
      Landlord is the ground lessee of the Land, and that Tenant has only the
      right to the possession and use of the Leased Property upon the terms and
      conditions of this Lease.

                                      -16-

<PAGE>

      Tenant, upon construction thereof, shall own the Hospital Improvements.
      Upon the expiration or earlier termination of this Lease, the Hospital
      Improvements shall be and become Landlord's property, provided Tenant or
      any other owner thereof, shall have the right to remove all equipment,
      furniture and other personal property from the Leased Property on or prior
      to the expiration or earlier termination of this Lease. Tenant shall
      repair any damage to the Leased Property and the Hospital Improvement
      occurring as a result of such removal.

      6.2 TENANT'S PERSONAL PROPERTY. Tenant, at its expense, shall install,
      affix, assemble and place on the Land or in the Hospital Improvements,
      Tenant's Personal Property, which Tenant's Personal Property shall be
      subject to the security interests and liens as provided in Section 16.8
      below. Tenant shall not, without the prior written consent of Landlord
      (which consent may be withheld in the event Tenant is in default
      hereunder), remove Tenant's Personal Property from the Leased Property.
      Tenant shall provide and maintain during the Term all such Tenant's
      Personal Property as shall be necessary in order to operate the Facility
      in compliance with all licensure and certification requirements, in
      compliance with all applicable Legal Requirements and Insurance
      Requirements and otherwise in accordance with customary practice in the
      industry for the Primary Intended Use. If removal is authorized by
      Landlord as provided herein, all of Tenant's Personal Property not removed
      by Tenant within thirty (30) days following the expiration or earlier
      termination of this Lease shall be considered abandoned by Tenant and may
      be appropriated, sold, destroyed or otherwise disposed of by Landlord
      without first giving notice thereof to Tenant, without any payment to
      Tenant and without any obligation to Tenant to account therefor. Tenant,
      at its expense, will restore the Leased Property and repair all damage to
      the Leased Property caused by the removal of Tenant's Personal Property,
      whether effected by Tenant or Landlord.

                                  ARTICLE VII

                      CONDITION AND USE OF LEASED PROPERTY

      7.1 CONDITION OF THE LEASED PROPERTY. Tenant acknowledges receipt and
      delivery of possession of the Leased Property and that Tenant has examined
      and otherwise has acquired knowledge of the condition of the Leased
      Property prior to the execution and delivery of this Lease and has found
      the same to be in good order and satisfactory for its purpose hereunder
      and under the Construction Loan Agreement. Tenant is leasing the Leased
      Property "as is" in its present condition and as shall be improved
      pursuant to the Construction Loan Agreement. Tenant waives any claim or
      action against Landlord in respect of 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, SUITABILITY, DESIGN OR CONDITION FOR ANY
      PARTICULAR USE OR PURPOSE OR OTHERWISE, 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.

      7.2 USE OF THE LEASED PROPERTY.

                                      -17-

<PAGE>

            (a) Tenant covenants that it will timely construct the Hospital
      Improvements in accordance with the terms and provisions of the
      Construction Loan Agreement.

            (b) Tenant covenants that it will apply for, obtain and maintain
      throughout the Term all approvals and licenses needed to use and operate
      the Leased Property and the Facility for the Primary Intended Use under
      applicable local, state and federal law, including but not limited to
      licensure approvals and Medicare and Medicaid certifications, provider
      numbers, certificates of need, governmental approvals, and full
      accreditation from all applicable governmental authorities and
      accreditation organizations, if any, that are necessary for the operation
      of the Facility as a general acute care hospital facility. Tenant
      acknowledges that the Land and the Northeast Parking Parcel are encumbered
      by the REA and agrees that Tenant will fully and completely comply with
      the terms of the REA in connection with the development and use of the
      Leased Property and the operation of the Facility.

            (c) From and after the Completion of the Hospital Improvements and
      throughout the remainder of the Term, Tenant shall use or cause to be used
      the Leased Property and the Hospital Improvements as a general acute care
      hospital facility in accordance with the approval received from TDH and as
      currently defined in the healthcare industry and for such other uses as
      may be necessary in connection with or incidental to such use (the
      "Primary Intended Use"). Tenant shall not use the Leased Property, the
      Hospital Improvements or any portion thereof for any other use without the
      prior written consent of Landlord, which Tenant agrees may be withheld in
      Landlord's sole discretion. No use shall be made or permitted to be made
      of the Leased Property and/or the Hospital Improvements and no acts shall
      be done which will cause the cancellation of any insurance policy covering
      the Leased Property or the Hospital Improvements or any part thereof, nor
      shall Tenant sell or otherwise provide to residents or patients therein,
      or permit to be kept, used or sold in or about the Leased Property and/or
      the Hospital Improvements any article which may be prohibited by law or by
      the standard form of fire insurance policies, any other insurance policies
      required to be carried hereunder or under applicable fire underwriters
      regulations. Tenant, at its sole cost, shall comply with all requirements,
      covenants and restrictions pertaining to the Leased Property, including,
      without limitation, all of the Permitted Exceptions, and other
      requirements of any insurance board, association, organization or company
      necessary for the maintenance of the insurance, as herein provided,
      covering the Leased Property, Tenant's Personal Property and the Hospital
      Improvements.

            (d) Tenant covenants and agrees that during the Term Tenant will
      continuously operate the Leased Property and the Hospital Improvements
      only as a provider of healthcare services in accordance with the Primary
      Intended Use and that Tenant shall maintain all required certifications
      for reimbursement and licensure and all accreditations.

            (e) Tenant shall not commit or suffer to be committed any waste on
      the Leased Property, or in the Facility, nor shall Tenant cause or permit
      any nuisance thereon.

                                      -18-

<PAGE>

            (f) Tenant shall neither suffer nor permit the Leased Property or
      any portion thereof, including any Capital Addition whether or not
      financed by Landlord, the Hospital Improvements or Tenant's Personal
      Property, to be used in such a manner as (i) might reasonably tend to
      impair Landlord's (or Tenant's, as the case may be) title thereto or to
      any portion thereof, or (ii) may reasonably make possible a claim or
      claims of adverse usage or adverse possession by the public, as such, or
      of implied dedication of the Leased Property or any portion thereof.

      7.3 LANDLORD TO GRANT EASEMENTS. Landlord, from time to time so long as no
      Event of Default has occurred and is continuing, at the request of Tenant
      and at Tenant's cost and expense, but subject to the approval of Landlord,
      which approval shall not be unreasonably withheld, shall request the Land
      Owner to (a) grant easements and other rights in the nature of easements,
      (b) release existing easements or other rights in the nature of easements
      which are for the benefit of the Leased Property, (c) dedicate or transfer
      unimproved portions of the Leased Property for road, highway or other
      public purposes, (d) execute petitions to have the Leased Property annexed
      to any municipal corporation or utility district, (e) execute amendments
      to any covenants and restrictions affecting the Leased Property and (f)
      execute and deliver to any person any instrument appropriate to confirm or
      effect such grants, releases, dedications and transfers (to the extent of
      its interest in the Leased Property), but only upon delivery to Landlord
      and the Land Owner of an Officer's Certificate stating (and such other
      information as Landlord and the Land Owner may reasonably require
      confirming) that such grant, release, dedication, transfer, petition or
      amendment is required for and not detrimental to the proper conduct of the
      Primary Intended Use on the Leased Property and does not reduce the value
      of the Leased Property and the Facility.

                                  ARTICLE VIII

                        LEGAL AND INSURANCE REQUIREMENTS

      8.1 COMPLIANCE WITH LEGAL AND INSURANCE REQUIREMENTS. Subject to Article
      XII relating to permitted contests, Tenant, at its expense, will promptly
      (a) comply with all Legal Requirements and Insurance Requirements in
      respect of the use, operation, maintenance, repair and restoration of the
      Leased Property and the Hospital Improvements, whether or not compliance
      therewith shall require structural change in any of the Hospital
      Improvements or interfere with the use and enjoyment of the Leased
      Property or the Hospital Improvements, and (b) procure, maintain and
      comply with all licenses, certificates of need, provider agreements,
      accreditations and other authorizations required for any use of the Leased
      Property, the Facility and Tenant's Personal Property then being made, and
      for the proper erection, installation, operation and maintenance of the
      Leased Property and the Hospital Improvements or any part thereof,
      including without limitation, any Capital Additions. Upon Landlord's
      request, Tenant shall deliver copies of all such licenses, certificates of
      need, agreements and other authorizations.

      8.2 LEGAL REQUIREMENT COVENANTS. Tenant covenants and agrees that the
      Leased Property, the Hospital Improvements and Tenant's Personal Property
      shall not be used for any unlawful purpose. Tenant shall acquire and
      maintain and shall use its best efforts

                                      -19-

<PAGE>

      to have Lessees acquire and maintain all licenses, certificates, permits,
      provider agreements and other authorizations and approvals needed to
      operate the Leased Property and the Hospital Improvements in a manner
      customary for the industry of the Primary Intended Use and any other use
      conducted on the Leased Property and the Hospital Improvements as may be
      permitted from time to time hereunder. Tenant further covenants and agrees
      that Tenant's use of the Leased Property and the Hospital Improvements and
      maintenance, alteration, and operation of the same, and all parts thereof,
      shall at all times conform to all applicable local, state and federal
      laws, ordinances, rules and regulations.

      8.3 HAZARDOUS MATERIALS.

            (a) During the Term, Tenant (i) shall comply, and cause the Leased
      Property and the Hospital Improvements to comply, with all Hazardous
      Materials Laws applicable to the Leased Property and the Hospital
      Improvements (including the making of all submissions to governmental
      authorities required by Hazardous Materials Laws and the carrying out of
      any remediation program specified by such authority), (ii) shall prohibit
      the use of the Leased Property and the Hospital Improvements for the
      generation, manufacture, refinement, production, or processing of any
      Hazardous Material or for the storage, handling, transfer or
      transportation of any Hazardous Material (other than in compliance with
      the Hazardous Materials Laws and in commercially reasonable quantities in
      connection with the operation, business and maintenance of the Leased
      Property and the Hospital Improvements as a hospital facility and/or as a
      consumer or supplier of consumer products), (iii) shall not permit to
      remain, install or permit the installation on the Leased Property or the
      Hospital Improvements of any surface impoundments, underground storage
      tanks, transformers containing polychlorinated biphenyl or
      asbestos-containing materials, and (iv) shall cause any improvements to or
      alterations of the Leased Property and the Hospital Improvements to comply
      with the Hazardous Materials Laws, and in connection with any such
      improvements or alterations shall remove any Hazardous Materials present
      upon the Leased Property or the Hospital Improvements which are not in
      compliance with Hazardous Materials Laws.

            (b) Tenant agrees to protect, defend, indemnify and hold harmless
      Landlord, its directors, officers, members, partners, employees and
      agents, and any successors and assigns of Landlord from and against any
      and all liability, including all foreseeable and all unforeseeable damages
      including but not limited to attorneys' and consultants' fees, fines,
      penalties and civil or criminal damages, directly or indirectly arising
      out of the use, generation, storage, treatment, release, threatened
      release, discharge, spill, presence or disposal of Hazardous Materials
      from, on, at, to or under the Leased Property or the Hospital Improvements
      during the Term (collectively, "Release"), and including, without
      limitation, the cost of any required or necessary repair, response action,
      remediation, investigation, cleanup or detoxification and the preparation
      of any closure or other required plans arising out of or relating to any
      such Release. This agreement to indemnify and hold harmless shall be in
      addition to any other obligations or liabilities Tenant may have to
      Landlord at common law under all statutes and ordinances or otherwise, and
      shall survive following the date of expiration or earlier termination of
      this Lease. Tenant expressly agrees that the representations, warranties
      and covenants made

                                      -20-

<PAGE>

      and the indemnities stated in this Lease are not personal to Landlord, and
      the benefits under this Lease may be assigned to subsequent parties in
      interest to the chain of title to the Leased Property and/or the Hospital
      Improvements, which subsequent parties in interest may proceed directly
      against Tenant to recover pursuant to this Lease.

            (c) Tenant shall promptly notify Landlord in writing, upon Tenant's
      learning, of any:

                  (i) notice or claim to the effect that Tenant is or may be
            liable to any person as a result of the release or threatened
            release of any Hazardous Material into the environment from the
            Leased Property or the Hospital Improvements;

                  (ii) notice that Tenant is subject to investigation by any
            governmental authority evaluating whether any remedial action is
            needed to respond to the release or threatened release of any
            Hazardous Material into the environment from the Leased Property or
            the Hospital Improvements;

                  (iii) notice that the Leased Property and/or the Hospital
            Improvements is subject to any environmental lien; and

                  (iv) notice of violation to Tenant or awareness by Tenant of a
            condition which might reasonably result in a notice of violation of
            any applicable Hazardous Material Law that could have a material
            adverse effect upon the Leased Property and/or the Hospital
            Improvements.

            (d) Tenant shall maintain a "best practices" protocol for disposal
      of medical waste and upon request Tenant shall provide all evidence
      thereof which Landlord may require.

      8.4 HEALTHCARE LAWS. Tenant warrants and represents that this Lease and
      all Secondary Leases are, and at all times during the Term will be, in
      compliance with all Healthcare Laws. Tenant agrees to add a provision or
      provisions to all of its third party agreements relating to the Leased
      Property and/or the Facility, including, without limitation, all Secondary
      Leases, that in the event it is determined that such agreement and/or
      sublease is in violation of the Healthcare Laws, such agreement and/or
      sublease shall be promptly renegotiated so that same are in compliance
      with all Healthcare Laws and if the parties to such agreement or sublease
      cannot agree on the modifications thereto, Tenant immediately shall
      terminate such agreement or sublease. Tenant agrees promptly to notify
      Landlord in writing upon learning of or upon receipt of any notice of
      investigation of any alleged Healthcare Law violations. Tenant hereby
      agrees to indemnify and defend, at its sole cost and expense, and hold
      harmless Landlord, its successors and assigns, from and against and to
      reimburse Landlord with respect to any and all claims, demands, actions,
      causes of action, losses, damages, liabilities, costs and expenses
      (including, without limitation, reasonable attorney's fees and court
      costs) of any and every kind or character, known or unknown, fixed or
      contingent, asserted against or incurred by Landlord at any time and from
      time to time by reason or arising out of any breach by Tenant of any of
      the above covenants, representations and warranties.

                                      -21-

<PAGE>

      8.5 REPRESENTATIONS AND WARRANTIES. Tenant represents and warrants to the
      Landlord as of the date hereof as follows:

            (a) Tenant is a limited partnership, duly organized and validly
      existing under the laws of the State of Texas.

            (b) Tenant is duly authorized to enter into, deliver and perform
      this Lease and the Lease constitutes the valid and binding obligation of
      Tenant, enforceable in accordance with its terms.

            (c) Neither the entering into of this Lease nor the performance by
      Tenant of its obligations hereunder will violate any provision of law or
      any agreement, indenture, note or other instrument binding upon Tenant.

            (d) No authority from or approval by any governmental body,
      commission or agency or consent of any third party is required in
      connection with the making or validity of and the execution, delivery and
      performance of this Lease or the other documents referred to herein.

            (e) There are no actions, suits or proceedings pending against or,
      to the knowledge of Tenant, its shareholders, directors, officers,
      employees and agents, threatened against or affecting Tenant or any
      Affiliate, in any court or before or by any governmental department,
      agency or instrumentality, an adverse decision in which could materially
      and adversely affect the financial condition, business or operations of
      Tenant or the ability of Tenant to perform its obligations under this
      Lease or the other documents referred to herein.

            (f) Tenant and its Affiliates are in compliance with all applicable
      laws, ordinances, rules, regulations and requirements of governmental
      authorities.

            (g) Tenant will use its best and good faith efforts to obtain all
      certificates of need, and other licenses and agreements required by the
      Healthcare Laws within sixty (60) days subsequent to the Completion Date.

      8.6 SINGLE PURPOSE ENTITY. Tenant is, at the time of the execution of this
      Lease, and shall remain at all times during the Term, a Single Purpose
      Entity created and to remain in good standing for the sole purpose of
      leasing the Leased Property, constructing the Hospital Improvements and
      operating the Facility in accordance with the terms of this Lease.
      Simultaneously with the execution of this Lease, and as requested by
      Landlord at other times during the Term, Tenant shall provide Landlord
      evidence that Tenant is a Single Purpose Entity and is in good standing in
      the state of its organization and in the State.

      8.7 ORGANIZATIONAL DOCUMENTS. Tenant shall not permit or suffer, without
      the prior written consent of Landlord (i) an amendment or modification of
      its Organizational Documents or the organizational documents of any
      constituent entity within Tenant, (ii) a change in the ownership or
      controlling interest in the general partner of Tenant, (iii) change in the
      ownership of more than twenty percent (20%) of the limited partnership

                                      -22-

<PAGE>

      interest in Tenant, (iv) any dissolution or termination of its existence,
      or (v) change in its state of formation or incorporation or its name.
      Tenant, prior to or simultaneously with the execution of this Lease, has
      delivered to Landlord a true and complete copy of the articles of
      incorporation and by-laws, articles of organization/certificate of
      formation and limited liability company operating agreement or certificate
      of limited partnership and partnership agreement, as the case may be,
      creating Tenant, and all other documents creating and governing Tenant
      (collectively, the "Organizational Documents"). Tenant warrants and
      represents that the Organizational Documents (i) were duly executed and
      delivered, (ii) are in full force and effect, and binding upon and
      enforceable in accordance with their terms, (iii) constitute the entire
      understanding among the shareholders, partners, or members of Tenant, and
      (iv) no breach exists under the Organizational Documents and no act has
      occurred and no condition exists which, with the giving of notice or the
      passage of time, or both, would constitute a breach under the
      Organizational Documents.

                                   ARTICLE IX

                              REPAIRS; RESTRICTIONS

      9.1 MAINTENANCE AND REPAIR.

            (a) Tenant, at its expense, will keep the Leased Property and all
      private roadways, sidewalks and curbs appurtenant thereto, the Hospital
      Improvements and Tenant's Personal Property in good first class order and
      repair (whether or not the need for such repairs occurs as a result of
      Tenant's use, any prior use, the elements, the age of the Leased Property
      or any portion thereof) and, except as otherwise provided in Articles XIV
      and XV, with reasonable promptness, will make all necessary and
      appropriate repairs thereto of every kind and nature, whether interior or
      exterior, structural or non-structural, ordinary or extraordinary,
      foreseen or unforeseen or arising by reason of a condition existing prior
      to the commencement of the Term (concealed or otherwise). All repairs, to
      the extent reasonably achievable, shall be at least equivalent in quality
      to the original work. Tenant will not take or omit to take any action the
      taking or omission of which might materially impair the value or the
      usefulness of the Leased Property, the Hospital Improvements or any part
      thereof for the Primary Intended Use. Tenant shall notify the Landlord of
      any and all repairs or improvements made to the Leased Property or the
      Hospital Improvements in excess of Fifty Thousand and 00/100 Dollars
      ($50,000.00).

            (b) Landlord shall not under any circumstances be required to build
      or rebuild any improvements on the Leased Property, or to make any
      repairs, replacements, alterations, restorations, or renewals of any
      nature or description to the Leased Property or the Hospital Improvements,
      whether ordinary or extraordinary, structural or non-structural, foreseen
      or unforeseen, or to make any expenditure whatsoever with respect thereto
      in connection with this Lease or to maintain the Leased Property or the
      Hospital Improvements in any way.

                                      -23-

<PAGE>

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

            (d) Unless Landlord shall convey any of the Leased Property to
      Tenant pursuant to the provisions of this Lease, Tenant, upon the
      expiration or prior termination of the Term, will vacate and surrender the
      Leased Property and the Hospital Improvements to Landlord in the condition
      in which the Leased Property was originally received from Landlord, except
      as improved, constructed, repaired, rebuilt, restored, altered or added to
      as permitted or required by the provisions of this Lease and except for
      ordinary wear and tear (subject to the obligation of Tenant to maintain
      the Leased Property and the Hospital Improvements in good order and repair
      during the Term), damage caused by the gross negligence or willful acts of
      Landlord and damage or destruction described in Article XIV or resulting
      from a Taking which Tenant is not required by the terms of this Lease to
      repair or restore.

            (e) Commencing on the Completion of construction of the Building,
      and on each January 1 thereafter, Tenant shall make annual deposits to a
      capital improvement reserve (the "Capital Improvement Reserve") at a
      financial institution of the Landlord's choosing. Such account shall
      require the signature of an officer of Tenant and Landlord to make
      withdrawals. The first annual deposit shall be equal to the product of Two
      Thousand Five Hundred and 00/100 Dollars ($2,500.00) times the number of
      beds in the Facility (the number of beds to be determined by the actual
      number of beds certified to be available for use in the Facility). On each
      January 1 thereafter during the Term, the Two Thousand Five Hundred and
      00/100 Dollars ($2,500.00) amount shall be increased by two and one-half
      percent (2.5%) per annum cumulative. Notwithstanding anything contained
      herein to the contrary, Tenant shall pay into the Capital Improvement
      Reserve any amounts needed in excess of such required payments as needed
      to undertake the required Capital Improvement. The amount in the Capital
      Improvement Reserve, including interest, may be used by Tenant with
      Landlord's approval, which such approval will not be unreasonably
      withheld, or by Landlord with Tenant's approval, which such approval will
      not be unreasonably withheld, to pay for capital improvements to the
      repair and replacement of the Leased Property and/or the Hospital
      Improvements. Tenant hereby grants to Landlord a security interest in all
      monies deposited into the Capital Improvement Reserve and Tenant, within
      fifteen (15) days subsequent to the Commencement Date, shall execute all
      documents necessary for Landlord to perfect its security interest in the
      Capital Improvement Reserve. Landlord and Tenant agree that the

                                      -24-

<PAGE>

      first dollars of all capital expenditures made in each year during the
      Term shall be funded from the Capital Improvement Reserve account to the
      full extent of such account.

      9.2 ENCROACHMENTS; RESTRICTIONS. If any of the Hospital Improvements
      shall, at any time, encroach upon any property, street or right-of-way
      adjacent to the Leased Property, or shall violate the agreements or
      conditions contained in any federal, state or local law, lawful
      restrictive covenant or other agreement affecting the Leased Property, or
      any part thereof, or shall impair the rights of others under any easement
      or right-of-way to which the Leased Property is subject, then promptly
      upon the request of Landlord, Tenant shall, at its expense, subject to its
      right to contest the existence of any encroachment, violation or
      impairment, (a) obtain valid and effective waivers or settlements of all
      claims, liabilities and damages resulting from each such encroachment,
      violation or impairment, whether the same shall affect Landlord or Tenant
      or (b) make such changes in the Hospital Improvements, and take such other
      actions, as Landlord in the good faith exercise of its judgment deems
      reasonably practicable, to remove such encroachment, or to end such
      violation or impairment, including, if necessary, the alteration of any of
      the Hospital Improvements, and in any event take all such actions as may
      be necessary in order to be able to continue the operation of the Facility
      for the Primary Intended Use substantially in the manner and to the extent
      the Facility was operated prior to the assertion of such violation or
      encroachment. Any such alteration shall be made in conformity with the
      applicable requirements of Article X. Tenant's obligations under this
      Section 9.2 shall be in addition to and shall in no way discharge or
      diminish any obligation of any insurer under any policy of title or other
      insurance and Tenant shall be entitled to a credit for any sums recovered
      by Landlord under any such policy of title or other insurance.

                                   ARTICLE X

                                CAPITAL ADDITIONS

      10.1 CONSTRUCTION OF CAPITAL ADDITIONS TO THE LEASED PROPERTY.

            (a) (i) After the completion of the construction of the Hospital
      Improvements, if no Event of Default shall have occurred and be continuing
      under this Lease and the Secondary Leases, Tenant, except as expressly
      provided in this Article X to the contrary, shall have the right, upon and
      subject to the terms and conditions set forth below, to construct or
      install Capital Additions on the Leased Property without the prior written
      consent of Landlord, provided, however, except as expressly provided in
      Section 10.2(d) hereof, Tenant shall not be permitted to create any
      Encumbrance on the Leased Property or the Hospital Improvements in
      connection with such Capital Addition. Prior to commencing construction of
      any Capital Addition, Tenant, at Tenant's sole cost and expense, shall (i)
      submit to Landlord in writing a proposal setting forth in reasonable
      detail any proposed Capital Addition and shall provide to Landlord such
      plans and specifications, certificates of need and other approvals,
      permits, licenses, contracts and other information concerning the proposed
      Capital Addition as Landlord may reasonably request, and (ii) obtain all
      necessary certificates of need, state licensure surveys and all regulatory
      approvals of architectural plans. Without limiting the generality of the

                                      -25-

<PAGE>

      foregoing, such proposal shall indicate the approximate projected cost of
      constructing such Capital Addition and the use or uses to which it will be
      put.

                  (ii) NO CAPITAL ADDITION SHALL BE MADE WITHOUT THE PRIOR
            WRITTEN CONSENT OF LANDLORD, WHICH CONSENT SHALL NOT BE UNREASONABLY
            WITHHELD OR DELAYED, (a) IF THE CAPITAL ADDITION COST OF SUCH
            PROPOSED CAPITAL ADDITION, WHEN AGGREGATED WITH THE COSTS OF ALL
            CAPITAL ADDITIONS MADE BY TENANT, WOULD EXCEED TWENTY-FIVE PERCENT
            (25%) OF THE THEN FAIR MARKET VALUE OF THE LEASED PROPERTY OR WOULD
            DIMINISH THE VALUE OF THE LEASED PROPERTY, OR (b) WHICH WOULD TIE IN
            OR CONNECT ANY HOSPITAL IMPROVEMENTS WITH ANY OTHER IMPROVEMENTS ON
            PROPERTY ADJACENT TO THE LEASED PROPERTY, INCLUDING WITHOUT
            LIMITATION, TIE-INS OF BUILDINGS OR OTHER STRUCTURES OF UTILITIES.
            ALL CAPITAL ADDITION SHALL BE ARCHITECTURALLY INTEGRATED AND
            CONSISTENT WITH THE LEASED PROPERTY.

                  (iii) LANDLORD ACKNOWLEDGES THAT TENANT INTENDS TO EXPAND THE
            HOSPITAL IMPROVEMENTS IN THE FOLLOWING MANNER (THE "EXPANSION
            IMPROVEMENTS"):

                              1. The opening of the fourth (4th) floor of the
                        Building from a shell to an active condition to add
                        twenty-four (24) more beds in the second (2nd) year
                        subsequent to the Commencement Date;

                              2. Construction of a fifth (5th) floor and sixth
                        (6th) floor to the Building to add forty-eight (48)
                        additional beds in the third (3rd) year subsequent to
                        the Commencement Date;

                              3. Construction of four (4) additional operating
                        rooms and a fifty percent (50%) expansion of the square
                        footage of the emergency room in the third (3rd) year
                        subsequent to the Commencement Date;

                              4. Construction of deck parking in the fourth
                        (4th) year subsequent to the Commencement Date (such
                        decked parking to be the replacement parking for the
                        parking area located on the Northeast Parking Parcel);

                              5. Construction of additional improvements of a
                        square footage required to increase total bed capacity
                        of the Facility to between one hundred eighty (180) and
                        two hundred (200) beds in the fifth year subsequent to
                        the Commencement Date; and

                              6. Construction of a connection between the ground
                        floor of the Building and the professional office
                        building which an affiliate of Tenant intends to
                        construct on a tract located adjacent to and southwest
                        of the Land.

      Landlord agrees that it will approve the Expansion Improvements without
      regard to the conditions set forth in Section 10.1(a)(iii) upon
      satisfaction of the following conditions:

                                      -26-

<PAGE>

                  (i) Landlord shall have received, reviewed and approved all
            plans and specifications for the Expansion Improvement, including
            without limitation, architectural, engineering and landscaping
            plans;

                  (ii) Tenant shall deliver to Landlord a copy of all permits
            necessary or required to construct and operate the Expansion
            Improvement, including without limitation, building permit,
            certificate of need, and state license survey; and

                  (iii) Landlord shall determine, in its reasonable discretion,
            that the Expansion Improvement will not result in a diminution in
            the value of the Leased Property.

            (b) Prior to commencing construction of any Capital Addition for
      which Tenant plans to borrow funds, Tenant shall first request Landlord to
      provide funds to pay for such Capital Addition in accordance with the
      provisions of Section 10.3. If Landlord declines or is unable to provide
      such financing on terms acceptable to Tenant, the provisions of Section
      10.2 shall apply. Notwithstanding any other provision of this Article X to
      the contrary, no Capital Addition shall be made without the consent of
      Landlord, which consent shall not be unreasonably withheld or delayed, if
      the Capital Addition Cost of such proposed Capital Addition, when
      aggregated with the costs of all Capital Additions made by Tenant, would
      exceed twenty-five percent (25%) of the then Fair Market Value of the
      Leased Property and the Hospital Improvements or would diminish the value
      of the Leased Property. Furthermore, no Capital Addition shall be made
      which would tie in or connect any Hospital Improvements with any other
      improvements on property adjacent to the Leased Property, including,
      without limitation, tie-ins of buildings or other structures or utilities,
      unless Tenant shall have obtained the prior written approval of Landlord,
      which approval in Landlord's sole discretion may be granted or withheld.
      All Capital Additions shall be architecturally integrated and consistent
      with the Hospital Improvements.

      10.2 CAPITAL ADDITIONS FINANCED BY TENANT. If Tenant provides or arranges
      to finance any Capital Addition, the following provisions shall be
      applicable:

            (a) There shall be no adjustment in the Base Rent by reason of any
      such Capital Addition.

            (b) Upon the expiration or earlier termination of this Lease, except
      by reason of the default by Tenant hereunder, Landlord shall compensate
      Tenant for each Capital Addition paid for or financed by Tenant in one of
      the following ways, determined in the sole discretion of Landlord:

                  (i) By purchasing all Capital Additions paid for by Tenant
            from Tenant for cash in the amount of the Fair Market Added Value of
            all such Capital Additions paid for or financed by Tenant; or

                  (ii) By purchasing all Capital Additions paid for by Tenant
            from Tenant by delivering to Tenant Landlord's purchase money
            promissory note in the amount of the Fair Market Added Value, due
            and payable not later than

                                      -27-

<PAGE>

            eighteen (18) months after the date of expiration or other
            termination of this Lease, bearing interest at the test rate
            applicable under Section 1272 of the Code or any successor section
            thereto ("Test Rate") or, if no such Test Rate exists, at the Prime
            Rate, which interest shall be payable monthly, and which note shall
            be secured by a mortgage on the Leased Property, subject to all
            mortgages and encumbrances on the Leased Property at the time of
            such purchase; or

                  (iii) Such other arrangement regarding such compensation as
            shall be mutually acceptable to Landlord and Tenant.

            (c) Landlord and Tenant agree that Tenant's construction lender for
      Capital Additions shall have the right to secure its loan by a mortgage
      upon Tenant's leasehold interest created hereunder and the Hospital
      Improvements provided such mortgage (i) shall be in an amount not to
      exceed the cost of the Capital Additions, (ii) shall be subordinate to
      this Lease and Landlord's rights herein, (iii) shall be subordinate to any
      mortgage or encumbrance now existing or hereinafter created, and (iv)
      shall be limited solely to Tenant's interest in the Leased Property and
      the Hospital Improvements.

      10.3 CAPITAL ADDITIONS FINANCED BY LANDLORD.

            (a) Tenant shall request that Landlord provide or arrange financing
      for a Capital Addition by providing to Landlord such information about the
      Capital Addition (a "Request") as Landlord may request, including without
      limitation, all information referred to in Section 10.1 above. Landlord
      may, but shall be under no obligation to, obtain the funds necessary to
      meet the Request. Within thirty (30) days subsequent to receipt of a
      Request, Landlord shall notify Tenant as to whether it will finance the
      proposed Capital Addition and, if so, the terms and conditions upon which
      it will do so, including the terms of any amendment to this Lease. In no
      event shall the portion of the projected Capital Addition Cost comprised
      of land, if any, materials, labor charges and fixtures be less than ninety
      percent (90%) of the total amount of such cost. Tenant may withdraw its
      Request by notice to Landlord at any time before or after receipt of
      Landlord's terms and conditions.

            (b) If Landlord agrees to finance the proposed Capital Addition,
      Tenant shall provide Landlord with the following prior to any advance of
      funds:

                  (i) all customary or other required loan documentation;

                  (ii) any information, certificates of need, regulatory
            approvals of architectural plans and other certificates, licenses,
            permits or documents requested by either Landlord or any lender with
            whom Landlord has agreed or may agree to provide financing which are
            necessary to confirm that Tenant will be able to use the Capital
            Addition upon completion thereof in accordance with the Primary
            Intended Use, including all required federal, state or local
            government licenses and approvals;

                                      -28-

<PAGE>

                  (iii) an Officer's Certificate and, if requested, a
            certificate from Tenant's architect, setting forth in reasonable
            detail the projected (or actual, if available) cost of the Capital
            Addition;

                  (iv) an amendment to this Lease, duly executed and
            acknowledged, in form and substance satisfactory to Landlord, and
            containing such provisions as may be necessary or appropriate,
            including without limitation, any appropriate changes in the legal
            description of the Land, the Fair Market Value and the Rent, which
            shall be increased in an amount at least equal to the principal and
            interest on the debt incurred by Landlord to finance the Capital
            Addition;

                  (v) a deed conveying title to Landlord or an amendment to the
            Hospital Tract Ground Lease adding to the premises demises
            thereunder any land acquired for the purpose of constructing the
            Capital Addition, free and clear of any liens or encumbrances except
            those approved by Landlord and, both prior to and following
            completion of the Capital Addition, an as-built survey thereof
            satisfactory to Landlord;

                  (vi) endorsements to any outstanding policy of title insurance
            covering the Leased Property and any additional land referred to in
            Section 10.3(b)(v) above, or a supplemental policy of title
            insurance covering the Leased Property and any additional land
            referred to in Section 10.3(b)(v) above, satisfactory in form and
            substance to Landlord (A) updating the same without any additional
            exceptions, except as may be permitted by Landlord; and (B)
            increasing the coverage thereof by an amount equal to the Fair
            Market Value of the Capital Addition (except to the extent covered
            by the owner's policy of title insurance referred to in subparagraph
            (vii) below);

                  (vii) if required by Landlord, (A) an owner's policy of title
            insurance insuring fee simple title to any land conveyed to Landlord
            pursuant to subparagraph (v), free and clear of all liens and
            encumbrances except those approved by Landlord and (B) a lender's
            policy of title insurance satisfactory in form and substance to
            Landlord and the Lending Institution advancing any portion of the
            Capital Addition Cost;

                  (viii) if required by Landlord, prior to commencing the
            Capital Addition, an M.A.I. appraisal of the Leased Property and the
            Hospital Improvements indicating that the Fair Market Value of the
            Leased Property and the Hospital Improvements upon completion of the
            Capital Addition will exceed the Fair Market Value of the Leased
            Property and the Hospital Improvements prior thereto by an amount
            not less than one hundred percent (100%) of the Capital Addition
            Cost; and

                  (ix) such other certificates (including, but not limited to,
            endorsements increasing the insurance coverage, if any, at the time
            required by Section 13.1), documents, opinions of counsel,
            appraisals, surveys, certified copies of duly adopted resolutions of
            the Board of Directors of Tenant authorizing the execution

                                      -29-

<PAGE>

            and delivery of the lease amendment described above and any other
            instruments as may be reasonably required by Landlord and any
            Lending Institution advancing or reimbursing Tenant for any portion
            of the Capital Addition Cost.

            (c) Upon making a Request, whether or not such financing is actually
      consummated, Tenant shall pay or agree to pay, upon demand, all reasonable
      costs and expenses of Landlord and any Lending Institution which has
      committed to finance such Capital Addition which have been paid or
      incurred by them in connection with the financing of the Capital Addition,
      including, but not limited to, (i) the fees and expenses of their
      respective counsel, (ii) all printing expenses, (iii) the amount of any
      filing, registration and recording taxes and fees, (iv) documentary stamp
      taxes. transfer taxes, intangible taxes, and other similar charges, if
      any, (v) title insurance charges, appraisal fees, if any, rating agency
      fees, if any, and (vi) commitment fees, if any, and (vii) costs of
      obtaining regulatory and governmental approvals, including but not limited
      to any required certificates of need, for the construction, operation, use
      or occupancy of the Capital Addition.

      10.4 REMODELING AND NON-CAPITAL ADDITIONS. Subject to Article IX, Tenant
      shall have the right and the obligation to make additions, modifications
      or improvements to the Leased Property and the Hospital Improvements which
      are not Capital Additions ("Non-Capital Additions") from time to time as
      it, in its discretion, may deem to be desirable for the Primary Intended
      Use and to permit the Tenant to comply fully with its obligations set
      forth in this Lease, provided that such action will be undertaken
      expeditiously, in a workmanlike manner and will not significantly alter
      the character or purpose or detract from the value or operating efficiency
      of the Leased Property and will not significantly impair the revenue
      producing capability of the Leased Property or adversely affect the
      ability of the Tenant to comply with the provisions of this Lease. The
      cost of Non-Capital Additions, modifications and improvements shall,
      without payment by Landlord at any time, be included under the terms of
      this Lease and, upon expiration or earlier termination of this Lease,
      shall pass to and become the property of Landlord.

                                   ARTICLE XI

                                      LIENS

      11.1 LIENS. Subject to the provisions of Article XII relating to permitted
      contests, Tenant will not directly or indirectly create or allow to remain
      and will promptly discharge at its expense any lien, encumbrance,
      attachment, title retention agreement or claim upon the Leased Property,
      the Hospital Improvements or any attachment, levy, claim or encumbrance in
      respect of the Rent, not including, however, (a) this Lease, (b) the
      matters, if any, set forth in EXHIBIT C, (c) restrictions, liens and other
      encumbrances which are consented to in writing by Landlord, or any
      easements granted pursuant to the provisions of Section 7.3, (d) liens for
      those taxes of Landlord which Tenant is not required to pay hereunder, (e)
      liens for Impositions or for sums resulting from noncompliance with Legal
      Requirements so long as (1) the same are not yet payable or are payable
      without the addition of any fine or penalty or (2) such liens are in the
      process of being contested as permitted by Article XII, (f) liens of
      mechanics, laborers,

                                      -30-

<PAGE>

      materialmen, suppliers or vendors for sums either disputed or not yet due,
      provided that (1) the payment of such sums shall not be postponed for more
      than sixty (60) days after the completion of the action giving rise to
      such lien and such reserve or other appropriate provisions as shall be
      required by law or GAAP shall have been made therefor or (2) any such
      liens are in the process of being contested as permitted by Article XII,
      and (g) any liens which are the responsibility of Landlord pursuant to the
      provisions of Article XXIX of this Lease. Unless otherwise expressly
      provided herein, Tenant shall not mortgage or grant any interest in, or
      otherwise assign, any part of the Tenant's rights and interests in this
      Lease, the Leased Property, the Hospital Improvements or any permits,
      licenses, certificates of need (if any) or any other approvals required to
      operate the Facility during the Term without the prior written consent of
      the Landlord, which may be withheld at Landlord's sole discretion;
      provided nothing in this sentence shall prohibit or be deemed to prohibit
      the sale of additional limited partnership interest in Tenant as allowed
      under this Lease.

                                  ARTICLE XII

                               PERMITTED CONTESTS

      12.1 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, validity or application, in whole or in part, of any Imposition,
      Legal Requirement, Insurance Requirement, lien, attachment, levy,
      encumbrance, charge or claim not otherwise permitted by Article XI,
      provided that (a) 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 and the Hospital Improvements, (b) neither the
      Leased Property, the Hospital Improvements nor any Rent nor any part
      thereof or interest therein would be in any immediate danger of being
      sold, forfeited, attached or lost, (c) 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, (d) in the event that any such contest shall involve a sum of
      money or potential loss in excess of Fifty Thousand Dollars and 00/100
      Dollars ($50,000.00), then, in any such event, (i) provided the
      Consolidated Net Worth of Tenant is then in excess of Fifty Million
      Dollars and 00/100 Dollars ($50,000,000.00), Tenant shall deliver to
      Landlord an Officer's Certificate to the effect set forth in clauses (a),
      (b) and (c), to the extent applicable, or (ii) in the event the
      Consolidated Net Worth of Tenant is not then in excess of Fifty Million
      Dollars and 00/100 Dollars ($50,000,000.00), then Tenant shall deliver to
      Landlord and its counsel an opinion of Tenant's counsel to the effect set
      forth in clauses (a), (b) and (c), to the extent applicable, (e) 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 portion of the Leased Property, the Hospital
      Improvements or the Rent by reason of such non-payment or non-compliance;
      provided, however, the provisions of this Article XII shall not be
      construed to permit Tenant to contest the payment of Rent or any other
      sums payable by Tenant to Landlord hereunder, (f) in the case of an
      Insurance

                                      -31-

<PAGE>

      Requirement, the coverage required by Article XIII shall be maintained,
      and (g) if such contest be finally resolved against Landlord or Tenant,
      Tenant shall, as Additional Charges 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 reasonably be
      required in any such contest and, if reasonably requested by Tenant or if
      Landlord so desires, Landlord shall join as a party therein. Tenant shall
      indemnify and save Landlord harmless 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.

                                  ARTICLE XIII

                                    INSURANCE

      13.1 GENERAL INSURANCE REQUIREMENTS. During the Term, Tenant shall at all
      times keep the Leased Property, the Hospital Improvements (once
      constructed) and all property located in or on the Leased Property and in
      the Hospital Improvements, including Tenant's Personal Property, insured
      against loss or damage from such causes as are customarily insured
      against, by prudent owners of similar facilities. Without limiting the
      generality of the foregoing, Tenant shall obtain and maintain in effect
      throughout the Term, the kinds and amounts of insurance deemed necessary
      by Landlord, including the insurance described below. All insurance shall
      be written by insurance companies (i) acceptable to Landlord, (ii) that
      are rated at least an "A-VIII" or better by Best's Insurance Guide and Key
      Ratings and a claim payment rating by Standard & Poor's Corporation of A
      or better, and (iii) authorized, licensed and qualified to do insurance
      business in the State. The aggregate amount of coverage by a single
      company must not exceed five percent (5%) of the insurance company's
      policyholders' surplus. The policies must name Landlord (and any other
      entities as Landlord may deem necessary) and Land Owner as an additional
      insured and losses shall be payable to Landlord and/or Tenant as provided
      in Article XIV. Each insurance policy required hereunder must (i) provide
      primary insurance without right of contribution from any other insurance
      carried by Landlord, (ii) contain an express waiver by the insurer of any
      right of subrogation, setoff or counterclaim against any insured party
      thereunder including Landlord, (iii) permit Landlord to pay premiums at
      Landlord's discretion, and (iv) as respects any third party liability
      claim brought against Landlord, obligate the insurer to defend Landlord as
      an additional insured thereunder. In addition, the policies shall name as
      an additional insured the holder ("Facility Mortgagee") of any mortgage,
      deed of trust or other security agreement securing any Encumbrance placed
      on the Leased Property or the Hospital Improvements in accordance with the
      provisions of this Lease ("Facility Mortgage"), if any, by way of a
      standard form of mortgagee's loss payable endorsement. Any loss adjustment
      shall require the written consent of Landlord and each affected Facility
      Mortgagee. Evidence of insurance and/or Impositions shall be deposited
      with Landlord and, if requested, with any Facility Mortgagee(s). If any
      provision of any Facility Mortgage which constitutes a first lien on the
      Leased Property or the Hospital Improvements requires deposits of
      insurance to be made with such Facility Mortgagee, Tenant shall either pay
      to Landlord monthly the amounts required and Landlord shall

                                      -32-

<PAGE>

      transfer such amounts to such Facility Mortgagee or, pursuant to written
      direction by Landlord, Tenant shall make such deposits directly with such
      Facility Mortgagee. The policies on the Leased Property and the Hospital
      Improvements, the Fixtures and Tenant's Personal Property, shall insure
      against the following risks:

            (a) All Risks or Special Form Property insurance against loss or
      damage to the building and improvements, including but not limited to,
      perils of fire, lightning, water, wind, theft, vandalism and malicious
      mischief, plate glass breakage, and perils typically provided under an
      Extended Coverage Endorsement and other forms of broadened risk perils,
      and insured on a "replacement cost" value basis to the extent of the full
      replacement value of the Hospital Improvements. The policy shall include
      coverage for subsidence. The deductible amount thereunder shall be borne
      by the Tenant in the event of a loss and the deductible must not exceed
      Ten Thousand and 00/100 Dollars ($10,000.00) per occurrence. Further, in
      the event of a loss, Tenant shall abide by all provisions of the insurance
      contract, including proper and timely notice of the loss to the insurer,
      and Tenant further agrees that it will notify Landlord of any loss in the
      amount of Twenty Five Thousand and 00/100 Dollars ($25,000.00) or greater
      and that no claim at or in excess of Twenty Five Thousand and 00/100
      Dollars ($25,000.00) thereunder shall be settled without the prior written
      consent of Landlord, which consent shall not be unreasonably withheld or
      delayed by Landlord.

            (b) Flood and earthquake insurance shall be required only in the
      event that the Hospital Improvements is located in a flood plain or
      earthquake zone.

            (c) Insurance against loss of earnings in an amount sufficient to
      cover not less than twelve (12) months' lost earnings and written in an
      "all risks" form, either as an endorsement to the insurance required under
      Section 13.1(a) above, or under a separate policy.

            (d) Worker's compensation insurance covering all employees in
      amounts that are customary for Tenant's industry.

            (e) Commercial General Liability in a primary amount of at least
      Five Million and 00/100 Dollars ($5,000,000.00) per occurrence, bodily
      injury for injury or death of any one person and One Hundred Thousand and
      00/100 Dollars ($100,000.00) for property damage for damage to or loss of
      property of others, subject to a Ten Million and 00/100 Dollars
      ($10,000,000.00) annual aggregate policy limit for all bodily injury and
      property damage claims, occurring on or about the Leased Property or the
      Hospital Improvements or in any way related to the Leased Property or the
      Hospital Improvements, including but not limited to, any swimming pools or
      other rehabilitation and recreational facilities or areas that are located
      on the Leased Property or otherwise related to the Leased Property or the
      Hospital Improvements. Such policy shall include coverages of a Broad Form
      nature, including, but not limited to, Explosion, Collapse and Underground
      (XCU), Products Liability, Completed Operations, Broad Form Contractual
      Liability, Broad Form Property Damage, Personal Injury, Incidental
      Malpractice Liability, and Host Liquor Liability (if applicable).

                                      -33-

<PAGE>

            (f) Automobile and vehicle liability insurance coverage for all
      owned, non-owned, leased or hired automobiles and vehicles in a primary
      limit amount of One Million and 00/100 Dollars ($1,000,000.00) per
      occurrence for bodily injury; One Hundred Thousand and 00/100 Dollars
      ($100,000.00) per occurrence for property damage; subject to an annual
      aggregate policy limit of One Million and 00/100 Dollars ($1,000,000.00).

            (g) Umbrella liability insurance in the minimum amount of Ten
      Million and 00/100 Dollars ($10,000,000.00) for each occurrence and
      aggregate combined single limit for all liability, with a Ten Thousand and
      00/100 Dollars ($10,000.00) self-insured retention for exposure not
      covered in underlying primary policies. The umbrella liability policy
      shall name in its underlying schedule the policies of commercial general
      liability, garage keepers liability, automobile/vehicle liability and
      employer's liability under the Worker's Compensation Policy.

            (h) Professional liability insurance for any physician employed by
      Tenant or other employee or agent of Tenant providing services at the
      Facility in an amount not less than Five Million and 00/100 Dollars
      ($5,000,000.00) per individual claim and Ten Million and 00/100 Dollars
      ($10,000,000.00) annual aggregate.

            (i) A commercial blanket bond covering all employees of the Tenant,
      including its officers and the individual owners of the insured business
      entity, whether a joint-venture, partnership, proprietorship or
      incorporated entity, against loss as a result of their dishonesty. Policy
      limit shall be in an amount of at least One Million and 00/100 Dollars
      ($1,000,000.00) subject to a deductible of no more than Ten Thousand and
      00/100 Dollars ($10,000.00) per occurrence.

      The term "Full Replacement Cost" as used herein, shall mean the actual
      replacement cost thereof from time to time, including increased cost of
      construction endorsement, less exclusions provided in the normal fire
      insurance policy. In the event either Landlord or Tenant believes that the
      Full Replacement Cost has increased or decreased at any time during the
      Term, it shall have the right to have such Full Replacement Cost
      re-determined by the fire insurance company which is then providing the
      largest amount of fire insurance carried on the Leased Property and the
      Hospital Improvement, hereinafter referred to as the "impartial
      appraiser". The party desiring to have the Full Replacement Cost so
      re-determined shall forthwith, on receipt of such determination by such
      impartial appraiser, give written notice thereof to the other party
      hereto. The determination of such impartial appraiser shall be final and
      binding on the parties hereto, and Tenant shall forthwith increase, or may
      decrease, the amount of the insurance carried pursuant to this Article, as
      the case may be, to the amount so determined by the impartial appraiser.
      Tenant shall pay the fee, if any, of the impartial appraiser.

      13.2 ADDITIONAL INSURANCE. In addition to the insurance described above,
      Tenant shall maintain such additional insurance as may be required from
      time to time by any Facility Mortgagee and shall further at all times
      maintain adequate worker's compensation insurance coverage for all persons
      employed by Tenant at the Facility, in accordance with the requirements of
      applicable local, state and federal law.

                                      -34-

<PAGE>

      13.3 INSURANCE DURING CONSTRUCTION PERIOD. During the Construction Period,
      Tenant shall maintain or cause to be maintained all insurance required
      under the Construction Loan Agreement and Landlord and Land Owner shall be
      named as an additional insured with respect to such insurance.

      13.4 WAIVER OF SUBROGATION. All insurance policies carried by either party
      covering the Leased Property, the Fixtures, the Facility and/or Tenant's
      Personal Property, including without limitation, contents, fire and
      casualty insurance, shall expressly waive any right of subrogation on the
      part of the insurer against the other party. The parties hereto agree that
      their policies will include such a waiver clause or endorsement so long as
      the same is obtainable without extra cost, and in the event of such an
      extra charge the other party, at its election, may pay the same, but shall
      not be obligated to do so.

      13.5 FORM OF INSURANCE. All of the policies of insurance referred to in
      this Article XIII shall be written in form satisfactory to Landlord and by
      insurance companies satisfactory to Landlord. Tenant shall pay all of the
      premiums therefor, and shall deliver such original policies, or a
      certified copy thereof (which is certified in writing by a duly authorized
      agent for the insurance company as a "true and certified" copy of the
      policy), or in the case of a blanket policy, a copy of the original
      policy, to Landlord and Land Owner effective with the Commencement Date
      and furnished annually thereafter (and, with respect to any renewal
      policy, at least fifteen (15) days prior to the expiration of the existing
      policy) and in the event of the failure of Tenant either to obtain such
      insurance in the names herein called for or to pay the premiums therefor,
      or to deliver such policies or certified copies of such policies to
      Landlord and Land Owner at the times required, Landlord shall be entitled,
      but shall have no obligation, to obtain such insurance and pay the
      premiums therefor, which premiums shall be repayable to Landlord upon
      written demand therefor, and failure to repay the same shall constitute an
      Event of Default. Each insurer mentioned in this Article XIII shall agree,
      by endorsement on the policy or policies issued by it, or by independent
      instrument furnished to Landlord, that it will give to Landlord sixty (60)
      days' prior written notice (at Landlord's notice address as specified in
      this Lease ("Landlord's Notice Address") before the policy or policies in
      question shall be altered, allowed to expire or canceled. The parties
      hereto agree that all insurance policies, endorsements and certificates
      which provide that the insurer will "endeavor to" give notice before same
      may be altered, allowed to expire or canceled will not be acceptable to
      Landlord. Notwithstanding anything contained herein to the contrary, all
      policies of insurance required to be obtained by Tenant hereunder shall
      provide (i) that such policies will not lapse, terminate, be canceled, or
      be amended or modified to reduce limits or coverage terms unless and until
      Landlord has received not less than sixty (60) days' prior written notice
      at Landlord's Notice Address, and (ii) that in the event of cancellation
      due to non-payment of premium, the insurer will provide not less than ten
      (10) days' prior written notice to Landlord at Landlord's Notice Address.

      13.6 INCREASE IN LIMITS. In the event that Landlord shall at any time deem
      the limits of the personal injury, property damage or general public
      liability insurance then carried to be insufficient, the parties shall
      endeavor to agree on the proper and reasonable limits for such insurance
      to be carried and such insurance shall thereafter be carried with the
      limits thus agreed on until further change pursuant to the provisions of
      this Article XIII.

                                      -35-

<PAGE>

      If the parties shall be unable to agree thereon, the proper and reasonable
      limits for such insurance to be carried shall be determined by an
      impartial third party selected by the parties. Nothing herein shall permit
      the amount of insurance to be reduced below the amount or amounts required
      by any of the Facility Mortgages.

      13.7 BLANKET POLICY. Notwithstanding anything to the contrary contained in
      this Article XIII, Tenant's obligations to carry the insurance provided
      for herein may be brought within the coverage of a so-called blanket
      policy or policies of insurance carried and maintained by Tenant provided
      that:

            (a) Any such blanket policy or policies are acceptable to and have
      been approved by the Landlord;

            (b) Any such blanket policy or policies shall not be changed,
      altered or modified without the prior written consent of the Landlord; and

            (c) Any such blanket policy or policies shall otherwise satisfy the
      insurance requirements of this Article XIII (including the requirement of
      sixty (60) days' written notice before the expiration or cancellation of
      such policies as required by Section 13.5) and shall provide for
      deductibles in amounts acceptable to Landlord.

      13.8 NO SEPARATE INSURANCE. Tenant shall not, on Tenant's own initiative
      or pursuant to the request or requirement of any third party, take out
      separate insurance concurrent in form or contributing in the event of loss
      with that required in this Article XIII to be furnished by, or which may
      reasonably be required to be furnished by, Tenant, 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 in all cases Landlord and
      all Facility Mortgagees, are included therein as additional insureds and
      the loss is payable under said insurance in the same manner as losses are
      required to be payable under this Lease. Tenant shall immediately notify
      Landlord of the taking out of any such separate insurance or of the
      increasing of any of the amounts of the then existing insurance by
      securing an additional policy or additional policies.

                                  ARTICLE XIV

                                FIRE AND CASUALTY

      14.1 INSURANCE PROCEEDS. All proceeds payable by reason of any loss or
      damage to the Leased Property, the Hospital Improvements or any portion
      thereof and insured under any policy of insurance required by Article XIII
      shall be paid to Landlord and held by Landlord in trust (subject to the
      provisions of Section 14.7) and shall be made available for reconstruction
      or repair, as the case may be, of any damage to or destruction of the
      Leased Property, the Hospital Improvements or any portion thereof, and
      shall be paid out by Landlord from time to time for the reasonable cost of
      such reconstruction or repair. Any excess proceeds of insurance remaining
      after the completion of the restoration or reconstruction of the Leased
      Property or the Hospital Improvements, as applicable, (or in

                                      -36-

<PAGE>

      the event neither Landlord nor Tenant is required or elects to repair and
      restore, all such insurance proceeds) shall be retained by Landlord free
      and clear upon completion of any such repair and restoration except as
      otherwise specifically provided below in this Article XIV. All salvage
      resulting from any risk covered by insurance shall belong to Landlord
      except that any salvage relating to Capital Additions paid for by Tenant
      or to Tenant's Personal Property shall belong to Tenant.

      14.2 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION COVERED BY
INSURANCE.

            (a) Except as provided in Section 14.7, if during the Term, the
      Hospital Improvements are totally or partially destroyed from a risk
      covered by the insurance described in Article XIII and the Hospital
      Improvements is thereby rendered Unsuitable for its Primary Intended Use,
      Tenant shall have the option, by giving written notice to Landlord within
      sixty (60) days following the date of such destruction, to (i) restore the
      Hospital Improvements to substantially the same condition as existed
      immediately before the damage or destruction, or (ii) so long as Tenant is
      not in default, or no event has occurred which with the giving of notice
      or the passage of time or both would constitute a default, under this
      Lease and the Secondary Leases, to purchase Landlord's interest in the
      Leased Property for a purchase price equal to the Fair Market Value
      Purchase Price of the Leased Property and the Hospital Improvements
      immediately prior to such damage or destruction. In the event Landlord
      does not accept Tenant's offer to so purchase within thirty (30) days
      after Landlord's receipt of Tenant's notice, Tenant may, after giving
      Landlord thirty (30) days' prior written notice, either withdraw its offer
      to purchase and proceed to restore the Hospital Improvements to
      substantially the same condition as existed immediately before the damage
      or destruction or, terminate this Lease and, in the latter event, Landlord
      shall be entitled to retain the insurance proceeds, and Tenant shall pay
      to Landlord on demand, the amount of any deductible or uninsured loss
      arising in connection therewith.

            (b) Except as provided in Section 14.7, if during the Term, the
      Hospital Improvements and/or the Fixtures are totally or partially
      destroyed from a risk covered by the insurance described in Article XIII,
      but the Facility is not thereby rendered Unsuitable for its Primary
      Intended Use, Tenant shall restore the Facility to substantially the same
      condition as existed immediately before the damage or destruction. Such
      damage or destruction shall not terminate this Lease; provided, however,
      if Tenant cannot within a reasonable time obtain all necessary
      governmental approvals, including building permits, licenses, conditional
      use permits and any certificates of need, after diligent efforts to do so,
      in order to be able to perform all required repair and restoration work
      and to operate the Facility for its Primary Intended Use in substantially
      the same manner as immediately prior to such damage or destruction, so
      long as Tenant is not in default, or no event has occurred which with the
      giving of notice or the passage of time or both would constitute a
      default, under the terms of this Lease and the Secondary Leases, Tenant
      shall have the option to purchase Landlord's interest in the Leased
      Property for a purchase price equal to the Fair Market Value Purchase
      Price of the Leased Property and the Hospital Improvements immediately
      prior to such damage or destruction.

                                      -37-

<PAGE>

            (c) If the cost of the repair or restoration exceeds the amount of
      proceeds received by Landlord from the insurance required under Article
      XIII, Tenant shall be obligated to contribute any excess amount needed to
      restore the Facility prior to use of the insurance proceeds. Such amount
      shall be paid by Tenant to Landlord (or a Facility Mortgagee if required)
      to be held in trust together with any other insurance proceeds for
      application to the cost of repair and restoration.

            (d) In the event Landlord accepts Tenant's offer to purchase
      Landlord's interest in the Leased Property, this Lease shall terminate
      upon payment of the purchase price and Landlord shall remit to Tenant all
      insurance proceeds being held in trust by Landlord or the Facility
      Mortgagee if applicable.

      14.3 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION NOT COVERED BY
      INSURANCE. Except as provided in Section 14.7 below, if during the Term,
      the Hospital Improvements are totally or materially destroyed from a risk
      not covered by the insurance described in Article XIII but that would have
      been covered if Tenant carried the insurance customarily maintained by,
      and generally available to, the operators of reputable health care
      facilities in the region in which the Facility is located, then whether or
      not such damage or destruction renders the Facility Unsuitable for its
      Primary Intended Use, Tenant shall restore the Hospital Improvements to
      substantially the same condition they were in immediately before such
      damage or destruction and this Lease shall not terminate or be terminated
      as a result of such damage or destruction. If such damage or destruction
      is not material, Tenant shall restore the Hospital Improvements at
      Tenant's expense.

      14.4 TENANT'S PERSONAL PROPERTY. All insurance proceeds payable by reason
      of any loss of or damage to any of Tenant's Personal Property or Capital
      Additions financed by Tenant shall be paid to Landlord and Landlord shall
      hold such insurance proceeds in trust to pay the cost of repairing or
      replacing the damage to Tenant's Personal Property or the Capital
      Additions financed by Tenant.

      14.5 RESTORATION OF TENANT'S PROPERTY. If Tenant is required or elects to
      restore the Hospital Improvements as provided in Sections 14.2 or 14.3,
      Tenant also shall restore all alterations and improvements made by Tenant,
      Tenant's Personal Property and all Capital Additions paid for by Tenant.

      14.6 NO ABATEMENT OF RENT. This Lease shall remain in full force and
      effect and Tenant's obligation to make rental payments and to pay all
      other charges required by this Lease shall remain unabated during any
      period required for repair and restoration.

      14.7 DAMAGE NEAR END OF TERM. Notwithstanding any provisions of Sections
      14.2 or 14.3 to the contrary, if damage to or destruction of the Hospital
      Improvements occurs during the last twenty-four (24) months of the Term,
      and if such damage or destruction cannot be fully repaired and restored
      within six (6) months immediately following the date of loss, either party
      shall have the right to terminate this Lease by giving notice to the other
      within thirty (30) days after the date of damage or destruction, in which
      event Landlord shall be entitled to retain the insurance proceeds and
      Tenant shall pay to

                                      -38-

<PAGE>

      Landlord on demand the amount of any deductible or uninsured loss arising
      in connection therewith.

      14.8 WAIVER. Tenant hereby waives any statutory or common law rights of
      termination which may arise by reason of any damage or destruction of the
      Hospital Improvements.

                                   ARTICLE XV

                                  CONDEMNATION

      15.1 DEFINITIONS.

            (a) "Condemnation" means (i) the exercise of any governmental power,
      whether by legal proceedings or otherwise, by a Condemnor or (ii) a
      voluntary sale or transfer by Landlord to any Condemnor, either under
      threat of Condemnation or while legal proceedings for Condemnation are
      pending.

            (b) "Date of Taking" means the date the Condemnor has the right to
      possession of the property being condemned.

            (c) "Award" means all compensation, sums or anything of value
      awarded, paid or received on a total or partial Condemnation.

            (d) "Condemnor" means any public or quasi-public authority, or
      private corporation or individual, having the power of Condemnation.

      15.2 PARTIES' RIGHTS AND OBLIGATIONS. If during the Term there is any
      Taking of all or any part of the Leased Property, the Hospital
      Improvements or any interest in this Lease by Condemnation, the rights and
      obligations of the parties shall be determined by this Article XV.

      15.3 TOTAL TAKING. If there is a Taking of all of the Leased Property by
      Condemnation, this Lease shall terminate on the Date of Taking.

      15.4 PARTIAL TAKING. If there is a Taking of a portion of the Leased
      Property and/or the Hospital Improvements by Condemnation, this Lease
      shall remain in effect if the Facility is not thereby rendered Unsuitable
      for its Primary Intended Use. If, however, the Facility is thereby
      rendered Unsuitable for its Primary Intended Use, Tenant shall have the
      option (a) to restore the Facility, at its own expense, to the extent
      possible, to substantially the same condition as existed immediately
      before the partial Taking, or, so long as Tenant is not in default, or no
      event has occurred which with the giving of notice or the passage of time
      or both would constitute a default, under the terms of this Lease and the
      Secondary Leases, or (b) to offer to acquire Landlord's interest in the
      Leased Property from Landlord for a purchase price equal to the Fair
      Market Value Purchase Price of the Leased Property and the Hospital
      Improvements immediately prior to such partial Taking, in which event this
      Lease shall terminate upon payment of the purchase price. Tenant shall
      exercise its option by giving Landlord notice thereof within sixty (60)

                                      -39-

<PAGE>

      days after Tenant receives notice of the Taking. In the event Landlord
      does not accept Tenant's offer to so purchase within thirty (30) days
      after receipt of the notice described in the preceding sentence, Tenant
      may either (a) withdraw its offer to purchase and proceed to restore the
      Facility, to the extent possible, to substantially the same condition as
      existed immediately before the partial Taking or (b) terminate this Lease
      by written notice to Landlord.

      15.5 RESTORATION. If there is a partial Taking of the Leased Property
      and/or the Hospital Improvements and this Lease remains in full force and
      effect pursuant to Section 15.4, Tenant shall accomplish all necessary
      restoration.

      15.6 AWARD DISTRIBUTION. In the event Landlord accepts Tenant's offer to
      purchase Landlord's interest in the Leased Property, as described in
      clause (b) of Section 15.4, the entire Award shall belong to Tenant
      provided no Event of Default is continuing and Landlord agrees to assign
      to Tenant all of its rights thereto. In any other event, the entire Award
      shall belong to and be paid to Landlord, except that, if this Lease is
      terminated, and subject to the rights of the Facility Mortgagee, Tenant
      shall be entitled to receive from the Award, if and to the extent such
      Award specifically includes such items, the following:

            (a) A sum attributable to the Capital Additions for which Tenant
      would be entitled to reimbursement at the end of the Term pursuant to the
      provisions of Section 10.2(c) and the value, if any, of the leasehold
      interest of Tenant under this Lease; and

            (b) A sum attributable to Tenant's Personal Property and any
      reasonable removal and relocation costs included in the Award.

            If Tenant is required or elects to restore the Facility, Landlord
      agrees that, subject to the rights of the Facility Mortgagees, its portion
      of the Award shall be used for such restoration and it shall hold such
      portion of the Award in trust, for application to the cost of the
      restoration.

      15.7 TEMPORARY TAKING. The Taking of the Leased Property, the Hospital
      Improvements or any part thereof, by military or other public authority
      shall constitute a Taking by Condemnation only when the use and occupancy
      by the Taking authority has continued for longer than six (6) months.
      During any such six (6) month period all the provisions of this Lease
      shall remain in full force and effect and the Base Rent shall not be
      abated or reduced during such period of Taking.

                                  ARTICLE XVI

                                     DEFAULT

      16.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following
      events (individually, an "Event of Default") shall constitute Events of
      Default hereunder:

                                      -40-

<PAGE>

            (a) if Tenant shall fail to make a payment of Rent or any other
      monetary payment due and payable by Tenant under this Lease when the same
      becomes due and payable, or

            (b) if Tenant shall fail to observe or perform any other term,
      covenant or condition of this Lease and such failure is not cured by
      Tenant within a period of thirty (30) days after receipt by Tenant of
      written notice thereof from Landlord (provided, however, in no event shall
      Landlord be required to give more than one (1) written notice per calendar
      year), unless such failure cannot with due diligence be cured within a
      period of thirty (30) days, in which case such failure shall not be deemed
      to continue if Tenant proceeds promptly and with due diligence to cure the
      failure and diligently completes the curing thereof within sixty (60) days
      after receipt by Tenant of Landlord's notice of default, or

            (c) if Tenant shall:

                  (i) admit in writing its inability to pay its debts generally
            as they become due,

                  (ii) file a petition in bankruptcy or a petition to take
            advantage of any insolvency act,

                  (iii) make an assignment for the benefit of its creditors,

                  (iv) consent to the appointment of a receiver of itself or of
            the whole or any substantial part of its property, or

                  (v) file a petition or answer seeking reorganization or
            arrangement under the Federal bankruptcy laws or any other
            applicable law or statute of the United States of America or any
            state thereof, or

                  (vi) admits in writing that Tenant cannot meet its obligations
            as they become due; or is declared insolvent according to any law;
            or assignment of Tenant's property is made for the benefit of
            creditors; or a receiver or trustee is appointed for Tenant or its
            property; or the interest of Tenant under this Lease is levied on
            under execution or other legal process; or any petition is filed by
            or against Tenant to declare Tenant bankrupt or to delay, reduce or
            modify Tenant's capital structure if Tenant be a corporation or
            other entity (provided that no such levy, execution, legal process
            or petition filed against Tenant shall constitute a breach of this
            Lease if Tenant shall vigorously contest the same by appropriate
            proceedings and shall remove or vacate the same within thirty (30)
            days from the date of its creation, service or filing); or

            (d) if any License is terminated or if Tenant or the Facility is
      excluded from participation in Medicare, Medicaid or other governmental
      payor programs by a final adjudication, or

                                      -41-

<PAGE>

            (e) except as a result of damage, destruction or a partial or
      complete Condemnation, the abandonment or vacation of the Leased Property
      and/or the Hospital Improvements by Tenant (Tenant's absence from the
      Leased Property and/or the Hospital Improvements for thirty (30)
      consecutive days shall constitute abandonment), or the failure by Tenant
      to continuously operate the Facility in accordance with the terms of this
      Lease, or

            (f) if Tenant shall, after a petition in bankruptcy is filed against
      it, be adjudicated a bankrupt or if a court of competent jurisdiction
      shall enter an order or decree appointing, without the consent of Tenant,
      as the case may be, a receiver of Tenant or of the whole or substantially
      all of its property, or approving a petition filed against it seeking
      reorganization or arrangement of Tenant under the federal bankruptcy laws
      or any other applicable law or statute of the United States of America or
      any state thereof, and such judgment, order or decree shall not be vacated
      or set aside or stayed within ninety (90) days from the date of the entry
      thereof, or

            (g) if Tenant shall be liquidated or dissolved, or shall begin
      proceedings toward such liquidation or dissolution, or shall, in any
      manner, permit the sale or divestiture of substantially all of its assets
      other than in connection with a merger or consolidation of Tenant into, or
      a sale of substantially all of Tenant's assets to, another corporation,
      provided that if the survivor of such merger or the purchaser of such
      assets shall assume all of Tenant's obligations under this Lease by a
      written instrument, in form and substance reasonably satisfactory to
      Landlord, accompanied by an opinion of counsel, reasonably satisfactory to
      Landlord and addressed to Landlord stating that such instrument of
      assumption is valid, binding and enforceable against the parties thereto
      in accordance with its terms (subject to usual bankruptcy and other
      creditors' rights exceptions), and provided, further, that if, immediately
      after giving effect to any such merger, consolidation or sale, Tenant or
      such other corporation (if not the Tenant) surviving the same, shall have
      a Consolidated Net Worth not less than the Consolidated Net Worth of
      Tenant immediately prior to such merger, consolidation or sale, all as to
      be set forth in an Officer's Certificate delivered to Landlord within
      thirty (30) days of such merger, consolidation or sale, an Event of
      Default shall not be deemed to have occurred, or

            (h) if the estate or interest of Tenant in the Leased Property, the
      Hospital Improvements or any part thereof shall be levied upon or attached
      in any proceeding and the same shall not be vacated or discharged within
      the later of ninety (90) days after commencement thereof or thirty (30)
      days after receipt by Tenant of written notice thereof from Landlord
      (unless Tenant shall be contesting such lien or attachment in good faith
      in accordance with Article XII hereof), or

            (i) if any of the representations or warranties made by Tenant in
      the Purchase Agreement or in the certificates delivered in connection
      therewith are or become untrue in any material respect, and which is not
      cured within ten (10) days after notice from Landlord, or

            (j) a default by Tenant as described in Section 16.2 below, or

                                      -42-

<PAGE>

            (k) a default or event of default shall occur under the Lease
      Assignment, Security Agreement or any other agreement between Landlord or
      any Affiliate of Landlord and Tenant or any Affiliate of Tenant, which is
      not cured within the cure period as provided therein, or

            (l) a default by Tenant under the documents evidencing the Loan, or

            (m) if Tenant causes or fails to prevent a payment default on any of
      its corporate debt or other leases or is declared to be in material
      default by any of its corporate lenders and such default is not cured
      within any applicable cure periods; or

      (n) IF A DEFAULT OCCURS UNDER ANY OTHER LEASE BETWEEN TENANT AND ITS
AFFILIATES AND LANDLORD AND ITS AFFILIATE AND SUCH DEFAULT IS NOT CURED WITHIN
ANY APPLICABLE CURE PERIODS.

      16.2 COVENANTS AND EVENTS OF DEFAULT. IN ADDITION TO THOSE MATTERS SET
   FORTH IN SECTION 16.1, THE OCCURRENCE OF ANY OF THE FOLLOWING EVENTS SHALL
   CONSTITUTE AN EVENT OF DEFAULT:

            (a) If, based on a quarterly test, Tenant's Consolidated Net Worth
      (net of Approved Pre-Opening Expenses pursuant to Section 32.7) shall be
      less than the below stated amount in the applicable period:

<TABLE>
<CAPTION>
     Year                 Consolidated Net Worth
     ----                 ----------------------
<S>                       <C>
     2005                       12,500,000

     2006                       11,000,000

     2007                        9,000,000

     2008                        9,000,000

     2009                       12,000,000

2010 and after                  15,000,000
</TABLE>

            (b) If EBITDAR Total Fixed Charge Coverage shall be less than the
      amount calculated per applicable period as provided below:

<TABLE>
<CAPTION>
                                  EBITDAR Testing Periods:                                     Calculation:
                                  -----------------------                                      ------------
<S>                    <C>                                                                  <C>
Year One:              -  For Year One as Tested at the End of the 4th Quarter              0.5 times EBITDAR

Year Two:              -  For Quarters 1, 2, and 3 (Tested Quarterly)                       0.5 times EBITDAR

                       -  For Year Two as Tested at the End of the 4th Quarter              0.75 times EBITDAR

Year Three:            -  For Quarters 1 and 2 (Tested Quarterly)                           1.0 times EBITDAR

                       -  For Quarters 3 and 4 (Tested Quarterly)                           1.2 times EBITDAR

Year Four: (and        -  Tested Quarterly                                                  1.5 times EBITDAR
thereafter)
</TABLE>

                                      -43-

<PAGE>

            (c) If EBITDAR Lease Coverage shall be less than the amount
      calculated per applicable period as provided below:

<TABLE>
<CAPTION>
                                   EBITDAR Testing Periods:                                    Calculation:
                                   -----------------------                                     -----------
<S>                    <C>                                                                  <C>
Year One:              -  For Year One as Tested at the End of the 4th Quarter              0.6 times EBITDAR

Year Two:              -  For Quarters 1, 2, and 3 (Tested Quarterly)                       0.6 times EBITDAR

                       -  For Year Two as Tested at the End of the 4th Quarter              1.2 times EBITDAR

Year Three:            -  For Quarters 1 and 2 (Tested Quarterly)                           1.5 times EBITDAR

                       -  For Quarters 3 and 4 (Tested Quarterly)                           1.8 times EBITDAR

Year Four:  (and       -  Tested Quarterly                                                  2.0 times EBITDAR
thereafter)
</TABLE>

            (d) Tenant, on a consolidated basis, shall experience six (6)
      consecutive quarters of falling net revenue, and EBITDAR (based on
      trailing twelve (12) months) shall be less than 1.5 times Tenant's Rent
      payments; or

            (e) Tenant shall be in payment default on any of its corporate debt
      or other leases or be declared to be in material default by any of its
      corporate lenders, unless such default is cured within any applicable cure
      periods.

      16.3 REMEDIES. If an Event of Default shall have occurred, Landlord,
      except as expressly provided to the contrary herein, shall have the right
      at its election, then or at any time thereafter, to pursue any one or more
      of the following remedies, in addition to any remedies which may be
      permitted by law, in equity or by other provisions of this Lease, without
      notice or demand.

            (a) Without any notice or demand whatsoever, Landlord may take any
      one or more of the actions permissible at law to insure performance by
      Tenant of Tenant's covenants and obligations under this Lease. In this
      regard, it is agreed that if Tenant deserts or vacates the Leased Property
      and/or the Hospital Improvements, Landlord may enter upon and take
      possession of the Leased Property and the Hospital Improvements in order
      to protect it from deterioration and continue to demand from Tenant the
      monthly rentals and other charges provided in this Lease, without any
      obligation to relet; but that if Landlord does, at its sole discretion,
      elect to relet the Leased Property and/or the Hospital Improvements, such
      action by Landlord shall not be deemed as an acceptance of Tenant's
      surrender of the Leased Property and/or the Hospital Improvements unless
      Landlord expressly notifies Tenant of such acceptance in writing pursuant
      to subsection (b) of this Section 16.3, Tenant hereby acknowledging that
      Landlord shall otherwise be reletting as Tenant's agent and Tenant
      furthermore hereby agreeing to pay to Landlord on demand any deficiency
      that may arise between the monthly rentals and other charges provided in
      this Lease and that are actually collected by Landlord. It is further
      agreed in this regard that in the event of any default described in
      Section 16.1, Landlord shall have the right to enter upon the Leased
      Property and the Hospital Improvements by force, if necessary, without
      being liable for prosecution or any claim for damages therefor, and do

                                      -44-

<PAGE>

      whatever Tenant is obligated to do under the terms of this Lease; and
      Tenant agrees to reimburse Landlord on demand for any expenses which
      Landlord may incur in thus effecting compliance with Tenant's obligations
      under this Lease, and Tenant further agrees that Landlord shall not be
      liable for any damages resulting to Tenant from such action.

            (b) Landlord may terminate this Lease by written notice to Tenant,
      in which event Tenant shall immediately surrender the Leased Property and
      the Hospital Improvements to Landlord, and if Tenant fails to do so,
      Landlord may, without prejudice to any other remedy which Landlord may
      have for possession or arrearages in Rent (including any late charge which
      may have accrued pursuant to Section 3.4), enter upon and take possession
      of the Leased Property and the Hospital Improvements and expel or remove
      Tenant and any other person who may be occupying the Leased Property and
      the Hospital Improvements or any part thereof, by force, if necessary,
      without being liable of prosecution or any claim for damages therefor.
      Tenant hereby waives any statutory requirement of prior written notice for
      filing eviction or damage suits for nonpayment of rent. In addition,
      Tenant agrees to pay to Landlord on demand the amount of all loss and
      damage which Landlord may suffer by reason of any termination effected
      pursuant to this subsection (b), said loss and damage to be determined, at
      Landlord's option, by either of the following alternative measures of
      damages:

                  (i) Until Landlord is able, although Landlord shall be under
            no obligation to attempt, to relet the Leased Property and lease the
            Hospital Improvements, Tenant shall pay to Landlord on or before the
            first day of each calendar month, the Rent and other charges
            provided in this Lease. After the Leased Property has been relet and
            the Hospital Improvements leased by Landlord, Tenant shall pay to
            Landlord on the tenth (10th) day of each calendar month the
            difference between the Rent and other charges provided in this Lease
            for the preceding calendar month and that actually collected by
            Landlord for such month. If it is necessary for Landlord to bring
            suit in order to collect any deficiency, Landlord shall have a right
            to allow such deficiencies to accumulate and to bring an action on
            several or all of the accrued deficiencies at one time. Any such
            suit shall not prejudice in any way the right of Landlord to bring a
            similar action for any subsequent deficiency or deficiencies. Any
            amount collected by Landlord from subsequent tenants for any
            calendar month, in excess of the monthly rentals and other charges
            provided in this Lease, shall be credited to Tenant in reduction of
            Tenant's liability for any calendar month for which the amount
            collected by Landlord will be less than the monthly rentals and
            other charges provided in this Lease; but Tenant shall have no right
            to such excess other than the above-described credit.

                  (ii) When Landlord desires, Landlord may demand a final
            settlement. Upon demand for a final settlement, Landlord shall have
            a right to, and Tenant hereby agrees to pay, the difference between
            the total of all monthly rentals and other charges provided in this
            Lease for the remainder of the Lease Term and the reasonable rental
            value of the Leased Property and the Hospital Improvements for such
            period, such difference to be discounted to present value at a rate
            equal to the

                                      -45-

<PAGE>

            lowest rate of capitalization (highest present worth) reasonably
            applicable at the time of such determination and allowed by
            applicable law. If Landlord elects to exercise the remedy prescribed
            in subsection (a) above, this election shall in no way prejudice
            Landlord's right at any time thereafter to cancel said election in
            favor of the remedy prescribed in subsection (b) above. Similarly,
            if Landlord elects to compute damages in the manner prescribed by
            subsection (b)(i) above, this election shall in no way prejudice
            Landlord's right at any time thereafter to demand a final settlement
            in accordance with this subsection (b)(ii) above. Pursuit of any of
            the above remedies shall not preclude pursuit of any other remedies
            prescribed in other sections of this Lease and any other remedies
            provided by law or equity. Forbearance by Landlord to enforce one or
            more of the remedies herein provided upon an Event of Default shall
            not be deemed or construed to constitute a waiver of such default.

            (c) Landlord may require Tenant to cancel the Management Agreement
      and to replace the Management Company with a company of Landlord's
      choosing.

            (d) Landlord, without waiving or releasing any obligation or Event
      of Default, may (but shall be under no obligation to) at any time
      thereafter make any payment or perform any act required to be made or
      performed under this Lease by Tenant for the account and at the expense of
      Tenant, and, to the extent permitted by law, may enter upon the Leased
      Property and/or the Hospital Improvements for such purpose and take all
      such action thereon as, in Landlord's opinion, may be necessary or
      appropriate therefor. No such entry shall be deemed an eviction of Tenant.
      All sums so paid by Landlord and all costs and expenses (including,
      without limitation, reasonable attorneys' fees and expenses, in each case,
      to the extent permitted by law) so incurred, together with a late charge
      thereon (to the extent permitted by law) at the Overdue Rate from the date
      on which such sums or expenses are paid or incurred by Landlord, shall be
      paid by Tenant to Landlord on demand.

            (e) In addition to other rights and remedies Landlord may have
      hereunder and at law and in equity, in the event Tenant defaults under
      this Lease, (i) Landlord shall have the right, but not the obligation or
      responsibility to hire all or some of the employees of Tenant, and Tenant
      hereby acknowledges that no non-compete or non-solicitation agreement is
      either implied or expressed hereunder relating to such employees; (ii)
      Tenant is deemed to have assigned to Landlord, at Landlord's sole option,
      all service agreements (including, without limitation, all medical
      director agreements); (iii) Tenant is deemed to have assigned and
      transferred to Landlord, at Landlord's sole option, all supplies and
      inventory used or usable in the operation of the Leased Property; and (iv)
      Tenant is deemed, at Landlord's sole discretion, to have transferred and
      assigned to Landlord all Licenses and agreements, including, without
      limitation, all Medicare and Medicaid provider numbers, or is hereby
      deemed, at Landlord's sole discretion, to agree to transfer to the
      Landlord all of the Licenses, including, without limitation, all Medicare
      and Medicaid provider numbers.

      16.4 ADDITIONAL EXPENSES. Tenant shall compensate Landlord for (i) all
      administrative expenses, (ii) all expenses incurred by Landlord in
      repossessing the

                                      -46-

<PAGE>

      Leased Property (including among other expenses, any increase in insurance
      premiums caused by the vacancy of the Leased Property), (iii) all expenses
      incurred by Landlord in reletting (including among other expenses,
      repairs, remodeling, replacements, advertisements and brokerage fees),
      (iv) all concessions granted to a new tenant or tenants upon reletting
      (including among other concessions, renewal options), (v) Landlord's
      reasonable attorneys' fees and expenses, (vi) all losses incurred by
      Landlord as a direct or indirect result of Tenant's default (including
      among other losses any adverse action by mortgagees), and (vii) a
      reasonable allowance for Landlord's administrative efforts, salaries and
      overhead attributable directly or indirectly to Tenant's default and
      Landlord's pursuing the rights and remedies provided herein and under
      applicable law.

      16.5 WAIVER. If this Lease is terminated pursuant to Section 16.3, Tenant
      waives, to the extent permitted by applicable law, (a) any right of
      redemption, re-entry or repossession, (b) any right to a trial by jury in
      the event of summary proceedings to enforce the remedies set forth in this
      Article XVI, and (c) the benefit of any laws now or hereafter in force
      exempting property from liability for rent or for debt.

      16.6 APPLICATION OF FUNDS. Any payments otherwise payable to Tenant which
      are received by Landlord under any of the provisions of this Lease during
      the existence or continuance of any Event of Default shall be applied to
      Tenant's obligations in the order which Landlord may reasonably determine
      or as may be prescribed by the laws of the State.

      16.7 NOTICES BY LANDLORD. The provisions of this Article XVI concerning
      notices shall be liberally construed insofar as the contents of such
      notices are concerned, and any such notice shall be sufficient if
      reasonably designed to apprise Tenant of the nature and approximate extent
      of any default, it being agreed that Tenant is in good or better position
      than Landlord to ascertain the exact extent of any default by Tenant
      hereunder.

      16.8 LANDLORD'S CONTRACTUAL SECURITY INTEREST. Tenant hereby grants to
      Landlord an express first and prior contract lien and security interest,
      in Tenant's interest in all property which may be placed on the Leased
      Property and the Hospital Improvements (including fixtures, equipment,
      chattels and merchandise), and also upon all proceeds of any insurance
      which may accrue to Tenant by reason of destruction of or damage to any
      such property and also upon all of Tenant's interest as Tenant and rights
      and options to purchase fixtures, equipment and chattels placed on the
      Leased Property and the Hospital Improvements (in case of fixtures,
      equipment and chattels leased to Tenant which are placed on the Leased
      Property or the Hospital Improvements). All exemption laws are hereby
      waived in favor of such lien and security interest and in favor of
      Landlord's statutory landlord lien. This lien and security interest are
      given in addition to any statutory landlord lien and shall be cumulative
      thereto. Landlord shall have at all times a valid security interest to
      secure payment of all rentals and other sums of money becoming due
      hereunder from Tenant, and to secure payment of any damages or loss which
      Landlord may suffer by reason of the breach by Tenant of any covenant,
      agreement or condition contained herein, upon all inventory, merchandise,
      goods, wares, equipment, fixtures, furniture, improvements and other
      tangible personal property of Tenant

                                      -47-

<PAGE>

      presently, or which may hereafter be, situated in or about the Leased
      Property and/or the Hospital Improvements, and all proceeds therefrom and
      accessions thereto and, except as a result of sales made in the ordinary
      course of Tenant's business, such property shall not be removed without
      the consent of Landlord until all arrearages in rent as well as any and
      all other sums of money then due to Landlord or to become due to Landlord
      hereunder shall first have been paid and discharged and all the covenants,
      agreements and conditions hereof have been fully complied with and
      performed by Tenant. Upon the occurrence of an Event of Default Landlord,
      in addition to any other remedies provided herein, may enter upon the
      Leased Property and the Hospital Improvements and take possession of any
      and all inventory, merchandise, goods, wares, equipment, fixtures,
      furniture, improvements and other personal property of Tenant situated in
      or about the Leased Property and/or the Hospital Improvements, without
      liability for trespass or conversion, and sell the same at public or
      private sale, with or without having such property at the sale, after
      giving Tenant reasonable notice of the time and place of any public sale
      of the time after which any private sale is to be made, at which sale the
      Landlord or its assigns may purchase unless otherwise prohibited by law.
      Unless otherwise provided by law, and without intending to exclude any
      other manner of giving Tenant reasonable notice, the requirement of
      reasonable notice shall be met, if such notice is given in the manner
      prescribed in this Lease at least seven (7) days before the time of sale.
      Any sale made pursuant to the provision of this Section 16.8 shall be
      deemed to have been a public sale conducted in commercially reasonable
      manner if held in the above-described premises or where the property is
      located after the time, place and method of sale and a general description
      of the types of property to be sold have been advertised in a daily
      newspaper published in the county in which the property is located, for
      five (5) consecutive days before the date of the sale. The proceeds from
      any such disposition, less any and all expenses connected with the taking
      of possession, holding and selling of the property (including reasonable
      attorney's fees and legal expenses), shall be applied as a credit against
      the indebtedness secured by the security interest granted in this
      paragraph. Any surplus shall be paid to Tenant or as otherwise required by
      law; Tenant shall pay any deficiencies forthwith. Upon request by
      Landlord, Tenant agrees to execute and deliver to Landlord a financing
      statement in form sufficient to perfect the security interest of Landlord
      in the aforementioned property and proceeds thereof under the provision of
      the Uniform Commercial Code (or corresponding state statute or statutes)
      in force in the State, as well as any other state the laws of which
      Landlord may at any time consider to be applicable.

      16.9 REMEDIES CUMULATIVE. To the extent permitted by law, each legal,
      equitable or contractual right, power and remedy of Landlord or Tenant now
      or hereafter provided either in this Lease or by statute or otherwise
      shall be cumulative and concurrent and shall be in addition to every other
      right, power and remedy and the exercise or beginning of the exercise by
      Landlord or Tenant of any one or more of such rights, powers and remedies
      shall not preclude the simultaneous or subsequent exercise by Landlord or
      Tenant of any or all of such other rights, powers and remedies.

                                  ARTICLE XVII

                                LANDLORD DEFAULT

                                      -48-

<PAGE>

      17.1 LANDLORD DEFAULT. The occurrence of any one or more of the following
      events (individually, a "Landlord Default") shall constitute a Landlord
      Default hereunder:

            (a) if any of Landlord, Lender, MPT Operating Partnership L.P., or
      Medical Properties Trust, Inc. shall:

                  (i) admit in writing its inability to pay its debts generally
            as they become due,

                  (ii) file a petition in bankruptcy or a petition to take
            advantage of any insolvency act,

                  (iii) make an assignment for the benefit of its creditors,

                  (iv) consent to the appointment of a receiver of itself or of
            the whole or any substantial part of its property, or

                  (v) file a petition or answer seeking reorganization or
            arrangement under the Federal bankruptcy laws or any other
            applicable law or statute of the United States of America or any
            state thereof;

            provided, however, that no such inability, petition, assignment,
      receivership, or forced reorganization shall constitute a breach of this
      Lease if Landlord or its affiliates vigorously contest the same by
      appropriate proceedings and shall remove or vacate the same within ninety
      (90) days from the date of its creation, service or filing; or

            (b) if any of Landlord, Lender, MPT Operating Partnership L.P., or
      Medical Properties Trust, Inc. shall be liquidated or dissolved, or shall
      begin proceedings toward such liquidation or dissolution, or shall, in any
      manner, permit the sale or divestiture of substantially all of its assets
      other than in connection with a merger or consolidation of Landlord into,
      or a sale of substantially all of Landlord's assets to, another business
      entity; or

            (c) if within sixty (60) days after the Completion Date the Landlord
      fails to acquire the Hospital Improvements in accordance with the terms of
      the Purchase Agreement; or

            (d) if Tenant shall have declared Lender to be in default of any of
      its material covenants or obligations under the Loan, and such default
      shall continue beyond any applicable notice, cure or grace period,
      provided such default is not caused by or did not arise due to any default
      by Tenant under the Loan.

      17.2 TENANT'S REMEDY. Upon the occurrence and during the continuance of a
      Landlord Default, Tenant will have the option to purchase all of
      Landlord's interest in the Land, the Ground Leases, and the Hospital
      Improvements for an amount equal to the sum of the then outstanding
      principal balance of the Loan plus any and all other sums expended by
      Landlord in connection with the transactions contemplated by this Lease,
      the Ground Leases and the Loan.

                                      -49-

<PAGE>

                                 ARTICLE XVIII

                                  HOLDING OVER

      18.1 HOLDING OVER. If Tenant shall for any reason remain in possession of
      the Leased Property and the Hospital Improvements after the expiration of
      the Term or any earlier termination of the Term, such possession shall be
      as a tenancy at will during which time Tenant shall pay as rental each
      month, one and one-quarter times the aggregate of (a) one-twelfth of the
      aggregate Base Rent payable with respect to the last complete Lease Year
      prior to the expiration of the Term; (b) all Additional Charges accruing
      during the month and (c) all other sums, if any, payable by Tenant
      pursuant to the provisions of this Lease with respect to the Leased
      Property. During such period of tenancy, Tenant shall be obligated to
      perform and observe all of the terms, covenants and conditions of this
      Lease, but shall have no rights hereunder other than the right, to the
      extent given by law to tenancies at will, to continue its occupancy and
      use of the Leased Property and the Hospital Improvements. 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.

                                  ARTICLE XIX

                                  RISK OF LOSS

      19.1 RISK OF LOSS. During the Term, the risk of loss or of decrease in the
      enjoyment and beneficial use of the Leased Property and the Hospital
      Improvements in consequence of the damage or destruction thereof by fire,
      the elements, casualties, thefts, riots, wars or otherwise, or in
      consequence of foreclosures, attachments, levies or executions (other than
      by Landlord and those claiming from, through or under Landlord) is assumed
      by Tenant and, Landlord shall in no event be answerable or accountable
      therefor nor shall any of the events mentioned in this Article XIX entitle
      Tenant to any abatement of Rent except as specifically provided in this
      Lease.

                                   ARTICLE XX

                                 INDEMNIFICATION

      20.1 INDEMNIFICATION. NOTWITHSTANDING THE EXISTENCE OF ANY INSURANCE
      PROVIDED FOR IN ARTICLE XIII, AND WITHOUT REGARD TO THE POLICY LIMITS OF
      ANY SUCH INSURANCE, TENANT WILL PROTECT, INDEMNIFY, SAVE HARMLESS AND
      DEFEND LANDLORD FROM AND AGAINST ALL LIABILITIES, OBLIGATIONS, CLAIMS,
      DAMAGES, PENALTIES, CAUSES OF ACTION, COSTS AND EXPENSES (INCLUDING,
      WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES AND EXPENSES), TO THE
      EXTENT PERMITTED BY LAW, IMPOSED UPON OR INCURRED BY OR ASSERTED AGAINST
      LANDLORD BY REASON OF: (A) ANY ACCIDENT, INJURY TO OR DEATH OF PERSONS OR
      LOSS OF PERSONAL PROPERTY OCCURRING ON OR ABOUT THE LEASED PROPERTY, THE
      HOSPITAL

                                      -50-

<PAGE>

      IMPROVEMENTS OR ADJOINING SIDEWALKS, INCLUDING WITHOUT LIMITATION ANY
      CLAIMS OF MALPRACTICE, (B) ANY USE, MISUSE, NO USE, CONDITION, MAINTENANCE
      OR REPAIR BY TENANT OF THE LEASED PROPERTY OR THE HOSPITAL IMPROVEMENTS,
      (C) ANY IMPOSITIONS (WHICH ARE THE OBLIGATIONS OF TENANT TO PAY PURSUANT
      TO APPLICABLE PROVISIONS OF THIS LEASE), (D) ANY FAILURE ON THE PART OF
      TENANT TO PERFORM OR COMPLY WITH ANY OF THE TERMS OF THIS LEASE, AND (E)
      THE NON-PERFORMANCE OF ANY OF THE TERMS AND PROVISIONS OF ANY AND ALL
      EXISTING AND FUTURE SUBLEASES OF THE LEASED PROPERTY OR THE HOSPITAL
      IMPROVEMENTS TO BE PERFORMED BY THE LANDLORD (TENANT) THEREUNDER. ANY
      AMOUNTS WHICH BECOME PAYABLE BY TENANT UNDER THIS SECTION SHALL BE PAID
      WITHIN THIRTY (30) DAYS AFTER LIABILITY THEREFOR ON THE PART OF LANDLORD
      IS DETERMINED BY LITIGATION OR OTHERWISE AND, IF NOT TIMELY PAID, SHALL
      BEAR A LATE CHARGE (TO THE EXTENT PERMITTED BY LAW) AT THE OVERDUE RATE
      FROM THE DATE OF SUCH DETERMINATION TO THE DATE OF PAYMENT. TENANT, AT ITS
      EXPENSE, SHALL CONTEST, RESIST AND DEFEND ANY SUCH CLAIM, ACTION OR
      PROCEEDING ASSERTED OR INSTITUTED AGAINST LANDLORD OR MAY COMPROMISE OR
      OTHERWISE DISPOSE OF THE SAME AS TENANT AND LANDLORD SEE FIT. NOTHING
      HEREIN SHALL BE CONSTRUED AS INDEMNIFYING LANDLORD AGAINST ITS OWN
      NEGLIGENCE OR OMISSIONS OR WILLFUL MISCONDUCT. TENANT'S LIABILITY FOR A
      BREACH OF THE PROVISIONS OF THIS ARTICLE SHALL SURVIVE ANY TERMINATION AND
      THE EXPIRATION OF THIS LEASE.

                                  ARTICLE XXI

                    SUBLETTING; ASSIGNMENT AND SUBORDINATION

      21.1 SUBLETTING; ASSIGNMENT AND SUBORDINATION. Tenant shall not assign the
      Lease or sublease the Leased Property or the Hospital Improvements or
      engage any Management Company or allow any Lessees to engage any
      Management Company without Landlord's prior written consent. Tenant, if
      required by Landlord, shall assign all of Tenant's rights under the
      Management Agreement to Landlord. All Management Agreements entered into
      in connection with the Leased Property and/or the Hospital Improvements or
      any portion thereof shall expressly contain provisions acceptable to
      Landlord which (i) require an assignment of the Management Agreement to
      Landlord upon request by Landlord, (ii) confirm and warrant that all sums
      in excess of One Million Dollars ($1,000,000.00) per year which are due
      and payable under the Management Agreement are subordinate to this Lease,
      (iii) grant Landlord the right to terminate the Management Agreement
      (individually or collectively, if more than one (1) upon a default
      hereunder or upon a default under such applicable Management Agreement,
      (iv) require the Management Company to execute and deliver to Landlord
      within ten (10) days from Landlord's request an assignment and/or
      subordination agreement as required by Landlord and/or Landlord's lender
      providing financing to Landlord, in such form and content as is acceptable
      to Landlord and/or its lender. Tenant agrees to execute and

                                      -51-

<PAGE>

      deliver (and/or require the tenants to execute and deliver, if applicable)
      an assignment and/or subordination agreement relating to the Management
      Agreement entered into in connection to the Leased Property and/or the
      Hospital Improvements, which assignment and/or subordination agreement
      shall be in such form and content as reasonably acceptable to the Landlord
      and/or any lender providing financing to Landlord, and shall be delivered
      to Landlord within ten (10) days from Landlord's request. Any sublease
      approved by Landlord shall be subordinate to this Lease and may be
      terminated or left in place by Landlord in the event of a termination of
      this Lease. Landlord shall not unreasonably withhold its consent to any
      other or further subletting or assignment; provided that (a) in the case
      of a subletting, the sublessee shall comply with the provisions of this
      Article XXI, (b) in the case of an assignment, the assignee shall assume
      in writing and agree to keep and perform all of the terms of this Lease on
      the part of Tenant to be kept and performed and shall be and become
      jointly and severally liable with Tenant for the performance thereof, and
      the assignee has credit and operating characteristics equal or greater
      than that of Tenant, (c) an original counterpart of each such sublease and
      assignment and assumption, duly executed by Tenant and such sublessee or
      assignee, as the case may be, in form and substance satisfactory to
      Landlord, shall be delivered promptly to Landlord, and (d) in case of
      either an assignment or subletting, Tenant shall remain primarily liable,
      as principal rather than as surety, for the prompt payment of the Rent and
      for the performance and observance of all of the covenants and conditions
      to be performed by Tenant hereunder. Notwithstanding anything contained
      herein to the contrary, Landlord and Tenant agree that all subleases,
      including, without limitation, all physician subleases (whether
      individually or physician groups) must provide (i) for a minimum lease
      term of sixty (60) months from the date that such sublessee or physician
      opens to the public for business; (ii) must be in compliance with all
      Legal Requirements and Healthcare Laws, including, without limitation, all
      Stark and Anti-Kickback rules and regulations and Landlord shall have the
      right, in its reasonable discretion, to review and approve/disapprove such
      compliance before consenting thereto; (iii) each sublessee and physician
      must sign a personal guaranty guaranteeing the full payment and
      performance under the sublease; (iv) must not violate the use restrictions
      as set forth in Section 7.2, and (v) must contain an express prohibition
      against leasehold financing by Tenant, sublessee and assignee. If
      conditions (i) through (iv) are not met, then Landlord's disapproval of
      any subleases not containing such terms and conditions shall be deemed
      reasonable.

      21.2 ATTORNMENT. Tenant shall insert in each sublease permitted under
      Section 21.1 provisions to the effect that (a) such sublease is subject
      and subordinate to all of the terms and provisions of this Lease and to
      the rights of Landlord hereunder, (b) in the event this Lease shall
      terminate before the expiration of such sublease, the sublessee thereunder
      will, at Landlord's option, attorn to Landlord and waive any right the
      sublessee may have to terminate the sublease or to surrender possession
      thereunder, as a result of the termination of this Lease, (c) that
      sublessee shall from time to time upon request of Tenant or Landlord
      furnish within ten (10) days an estoppel certificate relating to the
      sublease, and (d) in the event the sublessee receives a written notice
      from Landlord or Landlord's assignees, if any, stating that Tenant is in
      default under this Lease, the sublessee shall thereafter be obligated to
      pay all rentals accruing under said sublease directly to the party giving
      such notice, or as such party may direct. All rentals received

                                      -52-

<PAGE>

      from the sublessee by Landlord or Landlord's assignees, if any, as the
      case may be, shall be credited against the amounts owing by Tenant under
      this Lease.

      21.3 SUBLEASE LIMITATION. Anything contained in this Lease to the contrary
      notwithstanding, Tenant shall not sublet the Leased Property or the
      Hospital Improvements on any basis such that the rental to be paid by the
      sublessee thereunder would be based, in whole or in part, on either (a)
      the income or profits derived by the business activities of the sublessee,
      or (b) any other formula such that any portion of the sublease rental
      received by Landlord would fail to qualify as "rents from real property"
      within the meaning of Section 856(d) of the Code, or any similar or
      successor provision thereto. Provided also, Tenant shall not sublet any
      portion of the Leased Property or the Hospital Improvements for a term
      extending beyond the Fixed Term without the express consent of Landlord.
      In addition, all subleases shall comply with the Healthcare Laws. Landlord
      and Tenant acknowledge and agree that any subleases entered into relating
      to the Leased Property or the Hospital Improvements, whether or not
      approved by Landlord, shall not, without the prior written consent of
      Landlord, be deemed to be a direct lease between Landlord and any
      sublessee.

      21.4 SUBORDINATION. Any sublease approved by Landlord shall be subordinate
      to this Lease and may be terminated or left in place by Landlord in the
      event of a termination of this Lease. Tenant hereby agrees that all
      payments and fees payable under the Management Agreements are subordinate
      to the payment of the obligations under this Lease and all other documents
      executed or to be executed in connection with the Purchase Agreement.
      Tenant agrees to execute and cause the Management Company to execute (and
      cause the tenants to execute, if applicable) a subordination agreement
      relating to the Management Agreements (and the Secondary Leases), which
      subordination agreement shall be in such form and content as is acceptable
      to Landlord.

                                  ARTICLE XXII

         OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS; NOTICES AND OTHER
                                  CERTIFICATES

      22.1 ESTOPPEL CERTIFICATE. From time to time, each party hereto, on or
      before the date specified in a request therefor made by the other party,
      which date shall not be earlier than ten (10) days from the making of such
      request, but not more than three (3) times per calendar year, shall
      execute, acknowledge and deliver to the other party a certificate
      evidencing whether or not (i) this Lease is in full force and effect; (ii)
      this Lease has been amended in any way; and (iii) there are any existing
      defaults on the part of either party hereunder, to the knowledge of such
      other party, and specifying the nature of such defaults, if any; (iv)
      stating the date to which rent and other amounts due hereunder, if any,
      have been paid; and (v) such other matters as may reasonably be requested
      by such party. Each certificate delivered pursuant to this Section 23.1
      may be relied on by any prospective transferee of Landlord's or Tenant's
      interest hereunder and any lender of Landlord or Tenant.

                                      -53-

<PAGE>

      22.2 FINANCIAL STATEMENTS. Subsequent to the Construction Period and
      thereafter throughout the Term, Tenant will furnish the following
      statements to Landlord, which must be in such form and detail as Landlord,
      from time to time, may reasonably request:

            (a) within ninety (90) days after the end of Tenant's fiscal year, a
      copy of the Income Statements for the preceding fiscal year and an
      Officer's Certificate stating that to the best of the signer's knowledge
      and belief after making due inquiry, Tenant is not in default in the
      performance or observance of any of the terms of this Lease and no
      condition currently exists that would, but for the giving of any required
      notice or expiration of any applicable cure period, constitute an Event of
      Default, or, if Tenant shall be in default to its knowledge, specifying
      all such defaults, the nature thereof and the steps being taken to remedy
      the same, and

            (b) within ninety (90) days after the end of Tenant's fiscal year,
      audited financial statements of Tenant and the operations performed in the
      Facility, prepared by a nationally recognized accounting firm or an
      independent certified public accounting firm acceptable to Landlord, which
      statements shall include a balance sheet and statement of income and
      expenses and changes in cash flow all in accordance with GAAP, and

            (c) within forty-five (45) days after the end of each quarter,
      current financial statements of Tenant and the operations performed in the
      Facility, on a quarterly, year-to-date, and prior year comparable basis,
      certified to be true and correct by an officer of Tenant, and

            (d) within thirty (30) days after the end of each month, current
      operating statements of the Facility, including, but not limited to
      operating statistics, certified to be true and correct by an officer of
      the Tenant, and

            (e) within ten (10) days subsequent to receipt, any and all notices
      (regardless of form) from any and all licensing and/or certifying agencies
      that the license and/or the Medicare and/or Medicaid certification and/or
      managed care contract of the Facility is being downgraded to a substandard
      category, revoked, or suspended, or that action is pending or being
      considered to downgrade to a substandard category, revoke, or suspend such
      Facility's license or certification, and

            (f) with reasonable promptness, such other information respecting
      the financial condition and affairs of Tenant as Landlord may reasonably
      request from time to time.

Landlord reserves the right to require such other financial information from
Tenant at such other times as Landlord shall deem reasonably necessary.

      22.3 NOTICES REGARDING LICENSES. Within ten (10) days of receipt, Tenant
      shall furnish to Landlord copies of any and all notices (regardless of
      form) from any and all licensing or certifying agencies that any license
      or certification, including, without limitation, the Medicare or Medicaid
      certification of the Facility, is being downgraded, revoked or suspended,
      or that action is pending or being considered to downgrade, revoke or
      suspend such Facility's license or certification.

                                      -54-

<PAGE>

                                 ARTICLE XXIII

                              INSPECTIONS AND FEES

      23.1 INSPECTION FEE. Tenant shall permit Landlord and its authorized
      representatives to inspect the Leased Property and the Hospital
      Improvements during usual business hours subject to any security, health,
      safety or confidentiality requirements of Tenant, any governmental agency,
      any Insurance Requirements relating to the Leased Property and the
      Hospital Improvements or imposed by law or applicable regulations. On the
      Commencement Date and thereafter on January 1st of each year during the
      Term, Tenant shall pay to Landlord an inspection fee to cover the cost of
      the physical inspection of the Leased Property and the Hospital
      Improvements. The amount payable for the inspection fee on the
      Commencement Date is Seven Thousand Five Hundred and 00/100 Dollars
      ($7,500.00) and the amount of such inspection fee shall be increased by an
      amount equal to two and one-half percent (2.5%) per annum on each January
      1st.

                                  ARTICLE XXIV

                              TRANSFERS BY LANDLORD

      24.1 TRANSFER BY LANDLORD. Tenant understands that Landlord may sell its
      interest in the Leased Property in whole or in part. Tenant agrees that
      any purchaser of Landlord's interest in the Leased Property may exercise
      any and all rights of Landlord, as fully as if such purchaser was the
      original landlord hereunder; provided, however, such purchaser shall be
      subject to the same restrictions imposed upon Landlord hereunder. Landlord
      may divulge to any such purchaser all information, reports, financial
      statements, certificates and documents obtained by it from Tenant. If
      Landlord or any successor owner of Landlord's interest in the Leased
      Property shall convey such interest in the Leased Property, other than as
      security for a debt, and the purchaser of such interest in the Leased
      Property shall expressly assume all obligations of Landlord hereunder
      arising or accruing from and after the date of such conveyance or
      transfer, Landlord or such successor owner, as the case may be, shall
      thereupon be released from all future liabilities and obligations of the
      Landlord under this Lease arising or accruing from and after the date of
      such conveyance or other transfer as to Landlord's interest in the Leased
      Property and all such future liabilities and obligations shall thereupon
      be binding upon the new owner.

                                  ARTICLE XXV

                                 QUIET ENJOYMENT

      25.1 QUIET ENJOYMENT. So long as Tenant shall pay all Rent as the same
      becomes due and shall fully comply with all of the terms of this Lease and
      fully perform its obligations hereunder, Tenant shall peaceably and
      quietly have, hold and enjoy the Leased Property for the Term, free of any
      claim or other action by Landlord or anyone claiming by, through or under
      Landlord, but subject to all liens and encumbrances of record as of the
      date hereof or hereafter consented to by Tenant. No failure by Landlord to
      comply with

                                      -55-

<PAGE>

      the foregoing covenant shall give Tenant any right to cancel or terminate
      this Lease, or to fail to pay any other sum payable under this Lease, or
      to fail to perform any other obligation of Tenant hereunder.
      Notwithstanding the foregoing, Tenant shall have the right by separate and
      independent action to pursue any claim it may have against Landlord as a
      result of a breach by Landlord of the covenant of quiet enjoyment
      contained in this Article XXV.

                                  ARTICLE XXVI

                                     NOTICES

      26.1 NOTICES. All notices, demands, consents, approvals, requests and
      other communications required or permitted to be given under this Lease
      shall be in writing and shall be (a) delivered in person, (b) sent by
      certified mail, return receipt requested to the appropriate party at the
      address set out below, (c) sent by Federal Express, Express Mail or other
      comparable courier addressed to the appropriate party at the address set
      out below, or (d) transmitted by facsimile transmission to the facsimile
      number for each party set forth below:

      (a)   if to Tenant:   North Cypress Medical Center Operating Company, Ltd.
                            6830 North Eldridge Parkway, Suite 406
                            Houston, Texas  77041

                            Attention: Robert A. Behar, M.D.
                            Phone: (713) 466-6040
                            Fax: (713) 466-6050

            with copies to: Brennan Manna & Diamond, LLC
                            75 East Market Street
                            Akron, Ohio 44308
                            Attention: Frank T. Sossi, Esq.
                            Phone: (330) 253-5060
                            Fax: (330) 253-1977

                            Zimmerman, Axelrad, Meyer, Stern & Wise P.C.
                            3040 Post Oak Boulevard
                            Suite 1300
                            Houston, Texas  77056-6560
                            Attention: Leonard Meyer, Esq.
                            Phone: (713) 552-1234
                            Fax: (713) 963-0859

                                      -56-

<PAGE>

                            Vinson & Elkins
                            First City Tower, Suite 2300
                            1001 Fannin Street
                            Houston, Texas 77002-6760
                            Attention: Dennis C. Dunn, Esq.
                            Phone: (713) 758-3478
                            Fax: (713) 615-5047

      (b)   if to Landlord: MPT of North Cypress, L.P.
                            1000 Urban Center Drive, Suite 501
                            Birmingham, Alabama  35242
                            Attention: Michael G. Stewart, Esq.,
                                       Executive Vice President & General
                                       Counsel
                            Phone: (205) 969-3755
                            Fax: (205) 969-3756

            with a copy to: Morris, Manning & Martin, LLP
                            1600 Atlanta Financial Center
                            3343 Peachtree Road, N.E.
                            Atlanta, Georgia  30326-1044
                            Attention: Jeanna A. Brannon, Esq.
                            Phone: (404) 233-7000
                            Fax: (404) 365-9532

            Each notice, demand, consent, approval, request and other
      communication shall be effective upon receipt and shall be deemed to be
      duly received if delivered in person or by a national courier service,
      when left at the address of the recipient and if sent by facsimile, upon
      receipt by the sender of an acknowledgment or transmission report
      generated by the machine from which the facsimile was sent indicating that
      the facsimile was sent in its entirety to the recipient's facsimile
      number; provided that if a notice, demand, consent, approval, request or
      other communication is served by hand or is received by facsimile on a day
      which is not a Business Day, or after 5:00 p.m. on any Business Day at the
      addressee's location, such notice or communication shall be deemed to be
      duly received by the recipient at 9:00 a.m. on the first Business Day
      thereafter. Rejection or other refusal by the addressee to accept, or the
      inability to deliver because of a changed address or changed facsimile
      number of which no notice was given, shall be deemed to be receipt of the
      notice, demand, consent, approval, request or communication sent. Any
      party shall have the right, from time to time, to change the address or
      facsimile number to which notice to it shall be sent by giving to the
      other party or parties at least ten (10) days prior notice of the changed
      address or changed facsimile number.

                                 ARTICLE XXVII

                                    APPRAISAL

      27.1 APPRAISAL. In the event that it becomes necessary to determine the
      Fair Market Value of the Leased Property and the Hospital Improvements,
      Fair Market Value

                                      -57-

<PAGE>

      Purchase Price or Fair Market Added Value for any purpose of this Lease,
      the party required or permitted to give notice of such required
      determination shall include in the notice the name of a person selected to
      act as an appraiser on its behalf. Landlord and Tenant agree that any
      appraisal of the Leased Property and the Hospital Improvements shall be
      without regard to the termination of this Lease and shall assume the Lease
      is in place for a term of ninety-nine (99) years, and based solely on the
      rents and other revenues generated and to be generated pursuant to this
      Lease without any regard to Tenant's operations. Within ten (10) days
      after receipt of any such notice, Landlord (or Tenant, as the case may be)
      shall by notice to Tenant (or Landlord, as the case may be) appoint a
      second person as an appraiser on its behalf. The appraisers thus appointed
      (each of whom must be a member of the American Institute of Real Estate
      Appraisers or any successor organization thereto) shall, within forty-five
      (45) days after the date of the notice appointing the first (1st)
      appraiser, proceed to appraise the Leased Property and the Hospital
      Improvements, to determine the Fair Market Value of the Leased Property
      and the Hospital Improvements, Fair Market Value Purchase Price or Fair
      Market Added Value as of the relevant date (giving effect to the impact,
      if any, of inflation from the date of their decision to the relevant
      date); provided, however, that if only one (1) appraiser shall have been
      so appointed, or if two (2) appraisers shall have been so appointed but
      only one (1) such appraiser shall have made such determination within
      fifty (50) days after the making of Tenant's or Landlord's request, then
      the determination of such appraiser shall be final and binding upon the
      parties. If two (2) appraisers shall have been appointed and shall have
      made their determinations within the respective requisite periods set
      forth above and if the difference between the amounts so determined shall
      not exceed ten percent (10%) of the lesser of such amounts, then the Fair
      Market Value of the Leased Property and the Hospital Improvements, Fair
      Market Value Purchase Price or Fair Market Added Value shall be an amount
      equal to fifty percent (50%) of the sum of the amounts so determined. If
      the difference between the amounts so determined shall exceed ten percent
      (10%) of the lesser of such amounts, then such two (2) appraisers shall
      have twenty (20) days to appoint a third appraiser, but if such appraisers
      fail to do so, then either party may request the American Arbitration
      Association or any successor organization thereto to appoint an appraiser
      within twenty (20) days of such request, and both parties shall be bound
      by any appointment so made within such 20-day period. If no such appraiser
      shall have been appointed within such twenty (20) days or within ninety
      (90) days of the original request for a determination of Fair Market Value
      of the Leased Property and the Hospital Improvements, Fair Market Value
      Purchase Price or Fair Market Added Value, whichever is earlier, either
      Landlord or Tenant may apply to any court having jurisdiction to have
      appointment made by such court. Any appraiser appointed, by the American
      Arbitrator Association or by such court shall be instructed to determine
      the Fair Market Value of the Leased Property and the Hospital
      Improvements, Fair Market Value Purchase Price or Fair Market Added Value
      within thirty (30) days after appointment of such appraiser. The
      determination of the appraiser which differs most in terms of dollar
      amount from the determinations of the other two (2) appraisers shall be
      excluded, and fifty percent (50%) of the sum of the remaining two (2)
      determinations shall be final and binding upon Landlord and Tenant as the
      Fair Market Value of the Leased Property and the Hospital Improvements,
      Fair Market Value Purchase Price or Fair Market Added Value for such
      interest. This provision for

                                      -58-

<PAGE>

      determination by appraisal shall be specifically enforceable to the extent
      such remedy is available under applicable law, and any determination
      hereunder shall be final and binding upon the parties except as otherwise
      provided by applicable law. Landlord and Tenant shall each pay the fees
      and expenses of the appraiser appointed by it and each shall pay one-half
      of the fees and expenses of the third appraiser and one-half of all other
      costs and expenses incurred in connection with each appraisal.

                                 ARTICLE XXVIII

                        FINANCING OF THE LEASED PROPERTY

      28.1 FINANCING BY LANDLORD. Landlord agrees that, if it grants or creates
      any mortgage, lien, encumbrance or other title retention agreement
      ("Encumbrances") upon Landlord's interest in the Leased Property or any
      portion thereof, Landlord will use reasonable efforts to obtain an
      agreement from the holder of each such Encumbrance whereby such holder
      agrees (a) to give Tenant the same notice, if any, given to Landlord of
      any default or acceleration of any obligation underlying any such
      Encumbrance or any sale in foreclosure of such Encumbrance, (b) to permit
      Tenant, after twenty (20) days prior written notice, to cure any such
      default on Landlord's behalf within any applicable cure period, in which
      event Landlord agrees to reimburse Tenant for any and all reasonable
      out-of-pocket costs and expenses incurred to effect any such cure
      (including reasonable attorneys' fees), (c) to permit Tenant to appear
      with its representatives and to bid at any foreclosure sale with respect
      to any such Encumbrance, (d) that, if subordination by Tenant is requested
      by the holder of each such Encumbrance, to enter into an agreement with
      Tenant containing the provisions described in Article XXIX and (e)
      Landlord further agrees that no such Encumbrance shall in any way
      prohibit, derogate from, or interfere with Tenant's right and privilege to
      collaterally assign its leasehold and contract rights hereunder provided
      such collateral assignment and rights granted to the assignee thereunder
      shall be subordinate to the rights of the holder of an Encumbrance as
      provided in Article XXIX hereof.

      28.2 FINANCING BY TENANT.

            (a) Landlord agrees that Tenant shall have the right to place one
      (1) or more deeds of trust, mortgages or similar security interests on all
      or any portion of Tenant's leasehold interest in the Leased Property and
      the Hospital Improvements in connection with the Loan; provided, however,
      and except as provided below Tenant shall have no right whatsoever to
      encumber Landlord's reversionary interest in the Premises and such
      security instrument shall encumber only Tenant's rights under this Lease
      and the leasehold estate created hereby. Notwithstanding any other
      provision of this Lease to the contrary, in the event Tenant shall obtain
      the Loan, Landlord, upon request by Tenant, shall subordinate this Lease
      and Landlord's interest therein and in the Leased Property to the Loan and
      shall timely execute any and all documents reasonably requested by the
      construction lender to evidence such subordination.

            (b) In the event of a termination of this Lease prior to the
      expiration of the Term, for any reason other than Landlord's acquisition
      of the Hospital Improvements,

                                      -59-

<PAGE>

      Landlord, within fifteen (15) days prior to the termination of the Lease,
      shall serve upon Lender written notice of such termination, together with
      a statement of any and all sums which would be due under the Lease as of
      the date of notice (but for the termination of the Lease) and a
      description of any and all events of default. Within thirty (30) days from
      its receipt of the notice of termination, Lender shall have the option to
      obtain a new lease for the Leased Property by providing Landlord with
      written notice of its desire to exercise such option. Upon Landlord's
      receipt of such notice, Landlord shall enter into a new lease for the
      Leased Property with Lender which shall:

                  (i) Commence as of the date of the termination of the Lease,
            and shall be effective for the remainder of the Term, and contain
            all of the terms and conditions that were set forth in the Lease,
            including, but not limited to, those pertaining to rental payments;
            and

                  (ii) Require the tenant under the new lease to cure any
            monetary events of default under the terminated Lease.

Landlord shall promptly take all actions necessary to evict Tenant or any other
unauthorized party from the Leased Property and, subject to the rights of any
sublessee, shall provide the tenant under the new lease with the sole and
exclusive possession of the Leased Property upon execution of the new lease.

            (c) For the benefit of Lender, Landlord agrees, subject nevertheless
      to all of the terms, covenants, agreements, provisions, conditions and
      limitations contained in this Lease, not to accept a voluntary surrender
      of this Lease at any time during which Lender shall hold an outstanding
      mortgage, deed of trust or other security interest. It is further
      understood and agreed that Landlord and Tenant shall not modify this Lease
      without the prior written consent of Lender and no sale of the Leased
      Property and the Hospital Improvements or any portion thereof to Tenant
      shall terminate this Lease by merger or otherwise so long as Lender holds
      an outstanding deed to secure debt, mortgage or other security interest
      with respect to the portion of the Leased Property and the Hospital
      Improvements so sold. Landlord and Tenant hereby acknowledge and agree
      that Lender is an intended third party beneficiary of this Section 28.2.

                                  ARTICLE XXIX

                        SUBORDINATION AND NON-DISTURBANCE

      29.1 SUBORDINATION, NON-DISTURBANCE. At the request from time to time by
      one or more holders of a mortgage or deed of trust that may hereafter be
      placed by Landlord upon Landlord's interest in the Leased Property or any
      part thereof, and any and all renewals, replacements, modifications,
      consolidations, spreaders and extensions thereof, within ten (10) days
      from the date of request, Tenant shall execute and deliver, and shall have
      all subtenants or sublessees of the Leased Property and the Hospital
      Improvements execute and deliver within such ten (10) day period, to such
      holders a written agreement in a form reasonably acceptable to such holder
      whereby Tenant and such subtenants and sublessees subordinate this Lease
      and all of their rights and estate hereunder to each such

                                      -60-

<PAGE>

      mortgage or deed of trust that encumbers Landlord's interest in the Leased
      Property or any part thereof and agree with each such holder that Tenant
      and all such subtenants and sublessees will attorn to and recognize such
      holder or the purchaser at any foreclosure sale or any sale under a power
      of sale contained in any such mortgage or deed of trust, as the case may
      be, as Landlord under this Lease for the balance of the Term then
      remaining, subject to all of the terms and provisions of this Lease;
      provided, however, that each such holder simultaneously executes and
      delivers a written agreement (a) consenting to this Lease and agreeing
      that, notwithstanding any such other mortgage, deed of trust, right, title
      or interest, or any default, expiration, termination, foreclosure, sale,
      entry or other act or omission under, pursuant to or affecting any of the
      foregoing, Tenant and such subtenants and sublessees shall not be
      disturbed in peaceful enjoyment of the Leased Property, the Hospital
      Improvements or the subleased property (as applicable) nor shall this
      Lease (nor the applicable subleases) be terminated or canceled at any
      time, except in the event Tenant or such applicable subtenant or sublessee
      is in default under this Lease, or the applicable subleases; (b) agreeing
      that for any period while it is Landlord hereunder, it will perform,
      fulfill and observe all of Landlord's representations, warranties and
      agreements set forth herein; and (c) agreeing, unless otherwise expressly
      provided in the mortgage or deed of trust, that all proceeds of the
      casualty insurance described in Article XIV of this Lease and all Awards
      described in Article XV will be made available for restoration of the
      Leased Property and the Hospital Improvements as and to the extent
      required by this Lease, subject only to reasonable regulation regarding
      the disbursement and application thereof.

                                  ARTICLE XXX

                                    LICENSES

      30.1 MAINTAINING LICENSES. Tenant shall maintain at all times during the
      Term and any holdover period all federal, state and local governmental
      licenses, approvals, qualifications, variances, certificates of need,
      franchises, accreditations, certificates, certifications, consents,
      permits and other authorizations necessary for the operation of the
      Facility (collectively, the "Licenses"), and shall qualify and comply with
      all applicable laws as they may from time to time exist, including those
      applicable to certification and participation as a provider under Medicare
      and Medicaid legislation and regulations.

      30.2 TRANSFERS. Tenant shall not, without the prior written consent of
      Landlord, which may be granted or withheld in Landlord's sole discretion,
      effect or attempt to effect any change in the license category or status
      of the Facility or any part thereof. Under no circumstances shall Tenant
      have the right to transfer any of the Licenses to any location other than
      the Facility or to any other person or entity (except to Landlord as
      contemplated herein), whether before, during or after the Term. Following
      the termination of this Lease, Tenant shall retain no rights whatsoever to
      the Licenses, and Tenant will not move or attempt to move the Licenses to
      any other location. To the extent that Tenant has or will extend any
      right, title, or claim of right whatsoever in and to the Licenses or the
      right to operate the Facility, all such right, title, or claim of right
      shall automatically revert to the Landlord or to Landlord's designee upon
      termination of

                                      -61-

<PAGE>

      this Lease, to the extent allowed by law. Upon any termination of this
      Lease or any Event of Default (which Event of Default is not cured within
      any applicable grace period and which results in Landlord terminating this
      Lease), Landlord shall have the sole, complete, unilateral, absolute and
      unfettered right to cause all Licenses to be reissued in Landlord's name
      or in the name of Landlord's designee upon application therefor to the
      issuing authority, and to further have the right to have any and all
      provider and/or third party payor agreements as a provider in the Medicare
      and/or Medicaid and other federal healthcare programs issued in Landlord's
      name or in the name of Landlord's designee.

      30.3 COOPERATION. Upon termination of this Lease and for reasonable
      periods of time immediately before and after such termination, Tenant
      shall use its best efforts to facilitate an orderly transfer of the
      operation and occupancy of the Facility to Landlord or any new Tenant or
      operator selected by Landlord, it being understood and agreed that such
      cooperation shall include, without limitation, (a) Tenant's assignment, if
      and to the extent allowed by law, to Landlord or Landlord's new Tenant or
      operator of any and all Licenses, (b) Tenant's use of best efforts to
      maintain, to the maximum extent allowed by applicable law, the
      effectiveness of any and all such Licenses until such time as any new
      Licenses necessary for any new lessee or operator to operate the Facility
      have been issued, and (c) the taking of such other actions as are required
      by applicable law or as are reasonably requested by Landlord. Upon any
      termination of this Lease or Event of Default (which Event of Default is
      not cured within any applicable grace period and which results in Landlord
      terminating this Lease), Landlord shall have the sole, complete,
      unilateral, absolute and unfettered right to cause any and all Licenses to
      be reissued in Landlord's name or in the name of Landlord's designee upon
      application therefor to the appropriate authority, if required, and to
      further have the right to have any and all Medicare and Medicaid and any
      other provider and/or third party payor agreements issued in Landlord's
      name or in the name of Landlord's designee. The provisions of this Article
      XXX are in addition to the other provisions of this Lease.

      30.4 NO ENCUMBRANCE. It is an integral condition of this Lease that Tenant
      covenants and agrees not to sell, move, modify, cancel, surrender,
      transfer, assign, sell, relocate, pledge, secure, convey or in any other
      manner encumber any License or any governmental or regulatory approval,
      consent or authorization of any kind to operate the Facility.

      30.5 NOTICES. Tenant shall immediately (within two (2) Business Days)
      notify Landlord in writing of any notice, action or other proceeding or
      inquiry of any governmental agency, bureau or other authority whether
      federal, state, or local, of any kind, nature or description, which could
      adversely affect any material License or Medicare and/or
      Medicaid-certification status, or accreditation status of the Facility, or
      the ability of Tenant to maintain its status as the licensed and
      accredited operator of the Facility or which alleges noncompliance with
      any law. Tenant shall immediately (within two (2) Business Days) upon
      Tenant's receipt, furnish Landlord with a copy of any and all such notices
      and Landlord shall have the right, but not the obligation, to attend
      and/or participate, in Landlord's sole and absolute discretion, in any
      such actions or proceedings. Tenant shall act diligently to correct any
      deficiency or deal effectively with any "adverse action" or other
      proceedings, inquiry or other governmental action, so as to

                                      -62-

<PAGE>

      maintain the licensure and Medicare and/or Medicaid-certification status
      stated herein in good standing at all times. Tenant shall not agree to any
      settlement or other action with respect to such proceedings or inquiry
      which affects the use of the Leased Property, the Hospital Improvements or
      any portion thereof as provided herein without the prior written consent
      of Landlord, which consent shall not be unreasonably withheld or delayed.
      Tenant agrees to sign, acknowledge, provide and deliver to Landlord (and
      if Tenant fails to do so upon request of Landlord, Tenant hereby
      irrevocably appoints Landlord, as agent of Tenant for such express
      purposes) any and all documents, instruments or other writings which are
      or may become necessary, proper and/or advisable to cause any and all
      hospital licenses required for the Primary Intended Use, DHS provider
      agreements, and/or state or federal Title XVIII and/or Title XIX provider
      agreements to be obtained (either in total or individually) in the name of
      Landlord or the name of Landlord's designee in the event that Landlord
      reasonably determines in good faith that (irrespective of any claim,
      dispute or other contention or challenge of Tenant) there is any breach,
      default or other lapse in any representation, warranty, covenant or other
      delegation of duty to Tenant (beyond any applicable grace or cure period)
      and the issuing government agency has threatened or asserted that such
      license or provider agreement will terminate or has lapsed or that
      Tenant's license or certification or accreditation status is in jeopardy.
      This power is coupled with the ownership interest of Landlord in and to
      the Facility and all incidental rights attendant to any and all of the
      foregoing rights.

                                  ARTICLE XXXI

                         COMPLIANCE WITH HEALTHCARE LAWS

      31.1 COMPLIANCE. Tenant hereby covenants, warrants and represents to
      Landlord that as of the Commencement Date and throughout the Term: (i)
      Tenant shall be, and shall continue to be validly licensed, Medicare and
      Medicaid certified, and, if required, accredited to operate the Facility
      in accordance with the applicable rules and regulations of the State,
      federal governmental authorities and accrediting bodies, including, but
      not limited to, the United States Department of Health and Human Services,
      TDH and the Centers for Medicare and Medicaid Services; and/or (ii) Tenant
      shall be, and shall continue to be, certified by and the holder of valid
      provider agreements with Medicare and Medicaid issued by the Centers for
      Medicare and Medicaid Services and TDH and shall remain so certified and
      shall remain such a holder in connection with its operation of the Primary
      Intended Use on the Leased Property as a licensed and Medicare and
      Medicaid certified general acute care hospital facility; (iii) Tenant
      shall be, and shall continue to be in compliance with and shall remain in
      compliance with all state and federal laws, rules, regulations and
      procedures with regard to the operation of the Facility, including,
      without limitation, compliance under HIPAA; (iv) Tenant shall operate the
      Facility in a manner consistent with high quality rehabilitation services
      and sound reimbursement principles under the Medicare and/or Medicaid
      programs and as required under state and federal law; and (v) Tenant shall
      not abandon, terminate, vacate or fail to renew any license,
      certification, accreditation, certificate, approval, permit, waiver,
      provider agreement or any other authorization which is required for the
      lawful and proper operation of the Facility or in any way commit any act
      which will or may

                                      -63-

<PAGE>

      cause any such license, certification, accreditation, certificate,
      approval, permit, waiver, provider agreement or other authorization to be
      revoked by any federal, state or local governmental authority or
      accrediting body having jurisdiction thereof.

                                 ARTICLE XXXII

                                  MISCELLANEOUS

      32.1 GENERAL. Anything contained in this Lease to the contrary
      notwithstanding, all claims against, and liabilities of, Tenant or
      Landlord arising prior to any date of expiration or termination of this
      Lease shall survive such expiration or termination. If any term or
      provision of this Lease or any application thereof shall be invalid or
      unenforceable, the remainder of this Lease and any other application of
      such term or provision shall not be affected thereby and a like but valid
      and enforceable provision shall replace the invalid or unenforceable
      provision. If any late charges provided for in any provision of this Lease
      are based upon a rate in excess of the maximum rate permitted by
      applicable law, the parties agree that such charges shall be fixed at the
      maximum permissible rate. Neither this Lease nor any provision hereof may
      be changed, waived, discharged or terminated except by an instrument in
      writing and in recordable form signed by Landlord and Tenant. All the
      terms and provisions of this Lease shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors and assigns.
      The headings in this Lease are for convenience of reference only and shall
      not limit or otherwise affect the meaning hereof.

      32.2 GOVERNING LAW. This Lease shall be governed by and construed in
      accordance with the laws of the State, without regard to principles of
      conflicts of law.

      32.3 TRANSFER OF LICENSES. Upon the expiration or earlier termination of
      the Term, and except as prohibited by law, Tenant shall transfer to
      Landlord or Landlord's nominee, without additional consideration to
      Tenant, the Licenses and all contracts, including contracts with
      governmental or quasi-governmental entities which may be necessary or
      useful in the operation of the Facility. Tenant hereby grants to Landlord
      a landlord's lien on the License and all contracts, including contracts
      with governmental or quasi-governmental entities, which may be necessary
      or useful in the operation of the Facility. For purposes of effecting the
      transfers herein described and all assignments and transfers described in
      Article XVI, Tenant hereby nominates and irrevocably designates and
      appoints Landlord its true and lawful agent and attorney-in-fact, either
      in the name of Landlord or in the name of Tenant to do all acts and things
      and execute all documents which Landlord may deem necessary or advisable
      to effect the transfers and assignments set forth in this Section 32.3 and
      Article XVI, including without limitation preparing, signing and filing
      any and all agreements, documents and applications necessary to effect
      such transfers or assignments.

      32.4 LANDLORD'S EXPENSES. In addition to other provisions herein, Tenant
      agrees and shall pay and reimburse Landlord's costs and expenses,
      including legal fees, incurred or resulting from and relating to (a)
      requests by Tenant for approval or consent under this Lease, (b) requests
      by Landlord for approval or consent under this Lease, (c) any

                                      -64-

<PAGE>

      circumstances or developments which give rise to Landlord's right of
      consent or approval, (d) circumstances resulting from any action or
      inaction by Tenant contrary to the lease provisions, and (e) a request for
      changes including, but not limited to (i) the permitted use of the Leased
      Property and/or the Hospital Improvements, (ii) alterations and
      improvements to the Hospital Improvements, (iii) subletting or assignment,
      and (iv) any other changes in the terms, conditions or provisions of this
      Lease. Such expenses and fees shall be paid by Tenant within thirty (30)
      days of the submission of a statement for the same or such amount(s) shall
      become Additional Charges and subject to the Overdue Rate after thirty
      (30) days.

      32.5 ENTIRE AGREEMENT; MODIFICATIONS. This Lease embodies and constitutes
      the entire understanding between the parties with respect to the
      transactions contemplated herein, and all prior to contemporaneous
      agreements, understandings, representations and statements (oral or
      written) are merged into this Lease. Neither this Lease nor any provision
      hereof may be modified or amended except by an instrument in writing
      signed by Landlord and Tenant.

      32.6 FUTURE FINANCING. Tenant hereby agrees that if at any time during the
      Term Tenant purchases or contemplates the purchase of a facility, or
      property to be used, for the operation of a business for the Primary
      Intended Use, Tenant shall notify Landlord in writing of such purchase or
      contemplated purchase, and Landlord shall have the first opportunity to
      provide financing for such purchase upon terms mutually agreeable to
      Landlord and Tenant. Such financing will be contingent upon, among other
      things, performance benchmarks acceptable to Landlord and Landlord's
      satisfaction and approval of other due diligence requirements.

      32.7 CASH INJECTION. As of the Commencement Date, Tenant shall have
      received from its equity owners at least Fifteen Million and No/100
      Dollars ($15,000,000.00) in cash equity. So long as Tenant shall maintain
      the Consolidated Net Worth required under this Lease, such cash equity may
      be used for acquisition, pre-opening and operating expenses of the
      Facility and shall not be distributed to its equity owners. Upon request
      from Landlord from time to time, Tenant shall provide to Landlord evidence
      that such cash equity is in place and has not been distributed to Tenant's
      equity owners. During the Term, Tenant shall maintain Consolidated Net
      Worth in those amounts required under Section 16.2(a) above.

      32.8 ADDITIONAL LETTER OF CREDIT. In the event Tenant obtains a letter of
      credit or other form of credit enhancement from a sublessee, subtenant,
      operating company, management company, or any other individual or entity
      relating to the Facility, (the "Additional Letter of Credit"), such
      Additional Letter of Credit shall name Landlord as a beneficiary
      thereunder and shall be in a form acceptable to Landlord. Tenant hereby
      grants to Landlord a security interest in the Additional Letter of Credit.
      Tenant, within ten (10) subsequent to receipt of request therefore from
      Landlord, shall execute, and cause any applicable sublessee, subtenant,
      operating company, management company, or any other individual or entity
      to execute and deliver, all documents (including, without limitation, all
      bank/lender required documents) necessary for Landlord to perfect its
      security interest in the Additional Letter of Credit.

                                      -65-

<PAGE>

      32.9 LANDLORD SECURITIES OFFERING AND FILINGS. Notwithstanding anything
      contained herein to the contrary, Tenant agrees to cooperate with Landlord
      and its Affiliates in connection with any securities offerings and filings
      and in connection therewith, Tenant shall furnish Landlord with such
      financial and other information as Landlord shall request and Landlord and
      its Affiliates shall have the right of access, at reasonable business
      hours and upon advance notice, to the Facility and all documentation and
      information relating to the Facility and have the right to disclose any
      information regarding this Lease, the Tenant, the Leased Property, the
      Facility and such other additional information or documents which Landlord
      and/or its Affiliates may reasonably deem necessary.

      32.10 NON-RECOURSE AS TO LANDLORD. Anything contained herein to the
      contrary notwithstanding, any claim based on or in respect of any
      liability of Landlord under this Lease shall be enforced only against
      Landlord's interest in the Leased Property and not against any other
      assets, properties or funds of (i) Landlord, (ii) any director, officer,
      general partner, member, shareholder, limited partner, beneficiary,
      employee or agent of Landlord or any general partner or manager of
      Landlord or any of its general partners or members (or any legal
      representative, heir, estate, successor or assign of any thereof), (iii)
      any predecessor or successor partnership or corporation (or other entity)
      of Landlord or any of its general partners, members, shareholders,
      officers, directors, employees or agents, either directly or through
      Landlord or its general partners, members, shareholders, officers,
      directors, employees or agents or any predecessor or successor partnership
      or corporation (or other entity), or (iv) any person affiliated with any
      of the foregoing, or any director, officer, employee or agent of any
      thereof.

      32.11 COUNTERPARTS. This Lease may be executed in any number of
      counterparts, each of which shall be an original, but all of which
      together shall constitute one and the same instrument.

      32.12 NO WAIVER. No failure by Landlord or Tenant to insist upon the
      strict performance of any term hereof or to exercise any right, power or
      remedy consequent upon a breach thereof, and no acceptance of full or
      partial payment of Rent during the continuance of any such breach, shall
      constitute a waiver of any such breach or any such term. To the extent
      permitted by law, no waiver of any breach shall affect or alter this
      Lease, which shall continue in full force and effect with respect to any
      other then existing or subsequent breach.

      32.13 SURRENDER. No surrender to Landlord of this Lease or of the Leased
      Property or any part of any thereof, or of any interest therein, shall be
      valid or effective unless agreed to and accepted in writing by Landlord
      and no act by Landlord or any representative or agent of Landlord, other
      than such a written acceptance by Landlord, shall constitute an acceptance
      of any such surrender.

      32.14 NO MERGER OF TITLE. There shall be no merger of this Lease or of the
      leasehold estate created hereby by reason of the fact that the same
      person, firm, corporation or other entity may acquire, own or hold,
      directly or indirectly, (a) this Lease or the leasehold estate created
      hereby or any interest in this Lease or such leasehold estate and (b) the
      fee estate in the Leased Property.

                                      -66-

<PAGE>

                                 ARTICLE XXXIII

                               MEMORANDUM OF LEASE

      33.1 MEMORANDUM.

      Landlord and Tenant, promptly upon the request of either, shall enter into
a short form memorandum of this Lease, in form suitable for recording under the
laws of the state in which the Leased Property is located in which reference to
this Lease, and all options contained herein, shall be made.

                     [Signatures appear on following pages]

                                      -67-

<PAGE>

      IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be
executed by their incumbent and duly authorized representatives effective as of
June 1, 2005.

                              LANDLORD:

                              MPT OF NORTH CYPRESS, L.P., a Delaware limited
                              partnership

                              By: MPT of North Cypress, LLC, a Delaware limited
                                  liability company, its general partner

                                  By: MPT Operating Partnership, L.P., a
                                      Delaware limited partnership, its sole
                                      member

                                      By: Medical Properties Trust, LLC, a
                                          Delaware limited liability company,
                                          its general partner

                                      By: Edward K. Aldag, Jr.
                                          ----------------------------------
                                      Print Name: Edward K. Aldag, Jr.
                                                  --------------------------
Date: June 13, 2005                   Title: President & CEO
      ---------------------                  -------------------------------

                              TENANT:

                              NORTH CYPRESS MEDICAL CENTER OPERATING COMPANY,
                              LTD.,
                              a Texas limited partnership

                              By: North Cypress Medical Center Operating Company
                                  GP, LLC, a Texas limited liability company,
                                  its general partner

Date: June 8, 2005                By: /s/ Robert A. Behar, M.D.
      ----------------------          -----------------------------------------
                                  Name: Robert A. Behar, M.D.
                                  Title: Chairman of the Board

<PAGE>

                                    EXHIBIT A

                           PROPERTY DESCRIPTION (LAND)

                          METES AND BOUNDS DESCRIPTION
                 PROPOSED NORTH CYPRESS PROPERTY HOLDINGS TRACT
                                12.985 NET ACRES
                              Revised June 7, 2005

All that certain 13.958 acre (608,019 square foot) tract of land situated in the
W. H. Gentry Survey, Abstract Number 295 and in the William Jones Survey,
Abstract Number 489, both in Harris County, Texas, being out of and a part of a
called 13.5055 acre tract of land as described by deed recorded under Harris
County Clerk's File Number Y175041 and a called 19.855 acre tract of land as
described by deed recorded under Harris County Clerk's File Number X441181 and
being more particularly described by metes and bounds as follows: (All bearings
based on the Texas State Plane Coordinate System, South Central Zone)

COMMENCING FOR REFERENCE at a 5/8-inch iron rod with plastic cap stamped
"BENCHMARK ENGR" set in the northerly right-of-way line of U.S. Highway 290
(right-of-way width, varies) at the most southerly corner of the residue of a
tract of land as described in a conveyance to Frank Robert Kukral, Supreme Lodge
of Slavonic Benevolent Order of the State of Texas tract by deed recorded in
Volume 3703, Page 68 of the Harris County Deed Records for the most westerly
corner of said 13.5055 acre tract, from which a 5/8-inch iron rod found bears
South 09 degrees 30' 17" East, a distance of 1.56 feet;

THENCE, North 37 degrees 21' 26" East, along the northwesterly line of said
13.5055 acre tract, a distance of 381.03 feet to the POINT OF BEGINNING and
being the most westerly corner of the herein described tract;

THENCE, North 37 degrees 21' 26" East, continuing along the northwesterly line
of said 13.5055 acre tract, a distance of 418.26 feet to an exterior corner of
the herein described tract;

THENCE, South 54 degrees 00' 08" East, a distance of 474.00 feet to the
beginning of a curve to the left;

THENCE, southeasterly, a distance of 140.10 feet along the arc of said curve to
the left having a radius of 336.00 feet through a central angle of 23 degrees
53' 23" and a chord that bears South 64 degrees 35' 08" East, a distance of
139.08 feet to the point of reverse curvature of a curve to the right;

THENCE, southeasterly, a distance of 30.07 feet along the arc of said curve to
the right having a radius of 166.78 feet through a central angle of 10 degrees
19' 55" and a chord that bears South 71 degrees 21' 52" East, a distance of
30.03 feet to the point of reverse curvature of a curve to the left;

THENCE, northeasterly, a distance of 37.36 feet along the arc of said curve to
the left having a radius of 28.00 feet through a central angle of 76 degrees
27' 08" and a chord that bears North 75 degrees 34' 31" East, a distance of
34.65 feet to the point of tangency of said curve;

THENCE, North 37 degrees 20' 57" East, a distance of 40.04 feet to an interior
corner of the herein described tract;

<PAGE>

THENCE, North 52 degrees 38' 34" West, a distance of 9.81 feet to a 5/8-inch
iron rod found in the northwesterly line of said 19.855 acre tract at the most
southerly corner of a called 10.00 acre tract of land as described by deed
recorded under Harris County Clerk's File Number X647241 and being the most
easterly corner of said 13.5055 acre tract for an exterior corner of the herein
described tract;

THENCE, North 37 degrees 21' 26" East, along the northwesterly line of said
19.855 acre tract, a distance of 223.69 feet to a 5/8-inch iron rod found for an
angle point of said 10.00 acre tract, said 19.855 acre tract and the herein
described tract;

THENCE, North 87 degrees 37' 41" East, along the north line of said 19.855 acre
tract, a distance of 413.32 feet to a 5/8-inch iron rod found in the west
right-of-way line of Huffmeister Road (100-foot wide right-of-way) at the
southeast corner of a called 5.1348 acre tract of land as described by deed
recorded under Harris County Clerk's File Number X647240 for the northeast
corner of said 19.855 acre tract and the herein described tract;

THENCE, South 02 degrees 41' 38" East, along said west right-of-way line, a
distance of 55.63 feet to an exterior corner of the herein described tract;

THENCE, South 86 degrees 39' 10" West, a distance of 250.74 feet to the
beginning of a curve to the left;

THENCE, northwesterly, a distance of 23.43 feet along the arc of said curve to
the left having a radius of 15.00 feet through a central angle of 89 degrees
28' 55" and a chord that bears North 47 degrees 26' 05" West, a distance of
21.12 feet to the point of tangency of said curve;

THENCE, South 87 degrees 49' 25" West, a distance of 71.75 feet to the point of
curvature of a curve to the left;

THENCE, southwesterly, a distance of 119.81 feet along the arc of said curve to
the left having a radius of 136.00 feet through a central angle of 50 degrees
28' 28" and a chord that bears South 62 degrees 35' 11" West, a distance of
115.97 feet to the point of tangency of said curve;

THENCE, South 37 degrees 20' 57" West, a distance of 171.52 feet to the point
of curvature of a curve to the left;

THENCE, southeasterly, a distance of 38.43 feet along the arc of said curve to
the left having a radius of 28.00 feet through a central angle of 78 degrees
38' 20" and a chord that bears South 01 degrees 58' 13" East, a distance of
35.48 feet to the point of reverse curvature of a curve to the right;

THENCE, southeasterly, a distance of 48.88 feet along the arc of said curve to
the right having a radius of 166.78 feet through a central angle of 16 degrees
47' 36" and a chord that bears South 32 degrees 53' 36" East, a distance of
48.71 feet to the point of reverse curvature of a curve to the left;

THENCE, southeasterly, a distance of 70.04 feet along the arc of said curve to
the left having a radius of 136.00 feet through a central angle of 29 degrees
30' 24" and a chord that bears South 39 degrees 15' 00" East, a distance of
69.27 feet to the point of tangency of said curve;

THENCE, South 54 degrees 00' 12" East, a distance of 13.04 feet to the point of
curvature of a curve to the left;

THENCE, southeasterly, a distance of 28.21 along the arc of said curve to the
left having a-radius of 86.00 feet through a central angle of 18 degrees 47'
38" and a chord that bears South 63 degrees 24' 01" East, a distance of 28.08
feet to the point of reverse curvature of a curve to the right;

<PAGE>

THENCE, southeasterly, a distance of 103.49 feet along the arc of said curve to
the right having a radius of 54.50 feet through a central angle of 108 degrees
47' 38" and a chord that bears South 18 degrees 24' 01" East, a distance of
88.62 feet to the point of tangency of said curve;

THENCE, South 35 degrees 59' 48" West, a distance of 119.12 feet to the point of
curvature of a curve to the left;

THENCE, southwesterly, a distance of 77.35 feet along the arc of said curve to
the left having a radius of 112.00 feet through a central angle of 39 degrees
34' 10" and a chord that bears South 16 degrees 12' 43" West, a distance of
75.82 feet to the point of reverse curvature of a curve to the right;

THENCE, southwesterly, a distance of 85.39 along the arc of said curve to the
right having a radius of 48.00 feet through a central angle of 101 degrees 55'
41" and a chord that bears South 47 degrees 23' 29" West, a distance of 74.57
feet to the point of reverse curvature of a curve to the left;

THENCE, southwesterly, a distance of 21.93 along the arc of said curve to the
left having a radius of 20.00 feet through a central angle of 62 degrees 49' 24"
and a chord that bears South 66 degrees 56' 37" West, a distance of 20.85 feet
to the point of tangency of said curve;

THENCE, South 35 degrees 31' 55" West, a distance of 81.68 feet to the point of
curvature of a curve to the left;

THENCE, southwesterly, a distance of 12.07 along the arc of said curve to the
left having a radius of 18.00 feet through a central angle of 38 degrees 25' 39"
and a chord that bears South 16 degrees 19' 05" West, a distance of 11.85 feet
to the end of said curve;

THENCE, South 36 degrees 01' 56" West, a distance of 13.90 feet to an exterior
corner of the herein described tract;

THENCE, North 75 degrees 46' 46" West, a distance of 1.78 feet to the point of
curvature of a curve to the right;

THENCE, northwesterly, a distance of 14.05 feet along the arc of said curve to
the right having a radius of 110.00 feet through a central angle of 07 degrees
19' 12" and a chord that bears North 72 degrees 07' 10" West, a distance of
14.04 feet to an interior corner of the herein described tract;

THENCE, South 36 degrees 01' 56" West, a distance of 42.41 feet to the point of
curvature of a curve to the left;

THENCE, southwesterly, a distance of 45.27 feet along the arc of said curve to
the left having a radius of 150.00 feet through a central angle of 17 degrees
17' 31" and a chord that bears South 27 degrees 23' 35" West, a distance of
45.10 feet to the point of tangency of said curve;

THENCE, South 18 degrees 44' 49" West, a distance of 169.30 feet to a point in
the northerly right-of-way line of U.S. Highway 290 (right-of-way width, varies)
and being on the arc of a curve to the right at the most southerly corner of the
herein described tract;

THENCE, northwesterly, along said northerly right-of-way line a distance of 8.72
feet along the arc of said curve to the right having a radius of 477.47 feet
through a central angle of 01' 02' 47" and a chord that bears North 70 degrees
43' 47" West, a distance of 8.72 feet to a Texas Department of Transportation
monument found at the point of tangency of said curve;

<PAGE>

THENCE, North 70 degrees 12' 24" West, continuing along said northerly
right-of-way line, a distance of 13.91 feet to a Texas Department of
Transportation monument found at the point of curvature of a curve to the right;

THENCE, northwesterly, continuing along said northerly right-of-way line a
distance of 436.10 feet along the arc of said curve to the right having a radius
of 2,694.79 feet through a central angle of 09 degrees 16' 20" and a chord that
bears North 65 degrees 34' 13" West, a distance of 435.63 feet to an exterior
corner of the herein described tract;

THENCE, North 28 degrees 41' 36" East, a distance of 35.02 feet to the point of
curvature of a curve to the left;

THENCE, northeasterly, a distance of 17.75 feet along the arc of said curve to
the left having a radius of 63.00 feet through a central angle of 16 degrees 08'
24" and a chord that bears North 20 degrees 37' 25" East, a distance of 17.69
feet to the point of reverse curvature of a curve to the right;

THENCE, northeasterly, a distance of 46.03 feet along the arc of said curve to
the right having a radius of 112.50 feet through a central angle of 23 degrees
26' 36" and a chord that bears North 24 degrees 16' 31" East, a distance of
45.71 feet to the point of tangency of said curve;

THENCE, North 35 degrees 59' 48" East, a distance of 141.39 feet to the point of
curvature of a curve to the right;

THENCE, northeasterly, a distance of 21.07 feet along the arc of said curve to
the right having a radius of 37.50 feet through a central angle of 32 degrees
11' 39" and a chord that bears North 52 degrees 05' 38" East, a distance of
20.79 feet to an interior corner of the herein described tract;

THENCE, North 54 degrees 00' 12" West, a distance of 69.48 feet to an interior
corner of the herein described tract;

THENCE, South 36 degrees 00' 04" West, a distance of 4.37 feet to an exterior
corner of the herein described tract;

THENCE, North 54 degrees 19' 03" West, a distance of 186.81 feet to an exterior
corner of the herein described tract;

THENCE, North 35 degrees 40' 57" East, a distance of 15.94 feet to an interior
corner of the herein described tract;

THENCE, North 54 degrees 19' 03" West, a distance of 40.00 feet to an exterior
corner of the herein described tract;

THENCE, North 35 degrees 40' 57" East, a distance of 98.56 feet to an interior
corner of the herein described tract;

THENCE, North 54 degrees 19' 03" West, a distance of 235.19 feet to the POINT OF
BEGINNING and containing a computed area of 13.958 acres (608,019 square feet)
land. SAVE AND EXCEPT the following described tract;

<PAGE>

                              SAVE AND EXCEPT TRACT

COMMENCING FOR REFERENCE at a 5/8-inch iron rod found in the northwesterly line
of said 19.855 acre tract at the most southerly corner of a called 10.00 acre
tract of land as described by deed recorded under Harris County Clerk's File
Number X647241 and being the most easterly corner of said 13.5055 acre tract;

THENCE, South 37 degrees 21' 26" West, along the southeasterly line of said
13.5055 acre tract and along the northwesterly line of said 19.855 acre tract, a
distance of 553.87 feet to a point;

THENCE, South 52 degrees 38' 34" East, a distance of 28.91 feet to the POINT OF
BEGINNING and being an angle point of the herein described;

THENCE, North 76 degrees 11' 04" East, a distance of 35.74 feet to an angle
POINT;

THENCE, South 53 degrees 58' 04" East, a distance of 117.23 feet to an exterior
corner of the herein described tract;

THENCE, South 36 degrees 01' 56" West, a distance of 30.50 feet to an interior
corner of the herein described tract;

THENCE, South 53 degrees 58' 04" East, a distance of 5.52 feet to an exterior
corner of the herein described tract;

THENCE, South 36 degrees 01' 56" West, a distance of 252.00 feet to the most
southerly corner of the herein described tract;

THENCE, North 53 degrees 58' 04" West, a distance of 34.80 feet to the point of
curvature of a curve to the left;

THENCE, southwesterly, a distance of 3.93 feet along the arc of said curve to
the left having a radius of 2.50 feet through a central angle of 90 degrees 00'
00" and a chord that bears South 81 degrees 01' 56" West, a distance of 3.54
feet to the point of tangency of said curve;

THENCE, South 36 degrees 01' 56" West, a distance of 16.00 feet to an exterior
corner of the herein described tract;

THENCE, North 53 degrees 58' 04" West, a distance of 90.50 feet to an exterior
corner of the herein described tract;

THENCE, North 36 degrees 01' 56" East, a distance of 15.50 feet to the point of
curvature of a curve to the left;

THENCE, northwesterly, a distance of 3.93 feet along the arc of said curve to
the left having a radius of 2.50 feet through a central angle of 90 degrees 00'
00" and a chord that bears North 08 degrees 58' 04" West, a distance of 3.54
feet to the point of tangency of said curve;

THENCE, North 53 degrees 58' 04" West, a distance of 15.50 feet to an exterior
corner of the herein described tract;

<PAGE>

THENCE, North 36 degrees 01' 56" East, a distance of 255.68 feet to the POINT OF
BEGINNING and containing a computed area of 0.973 of one acre (42,392 square
feet) land, resulting in a net acreage of 12.985 acres (565,627 square feet) of
land.

This description is based on a survey made on the ground of the property and is
issued in conjunction with an exhibit map entitled "PROPOSED NORTH CYPRESS
PROPERTY HOLDINGS TRACT" prepared by Benchmark Engineering Corporation, Job
Number 03112.

<PAGE>

                                    EXHIBIT B

                 PROPERTY DESCRIPTION (NORTHEAST PARKING PARCEL)

                          METES AND BOUNDS DESCRIPTION
                         PROPOSED NORTHEAST PARKING LOT
                                   1.878 ACRES
                                   May 6, 2005

All that certain 1.878 acre (81,823 square foot) tract of land situated in the
William Jones Survey, Abstract Number 489, Harris County, Texas, being out of
and a part of a called 19.855 acre tract of land as described by deed recorded
under Harris County Clerk's File Number X441181 and being more particularly
described by metes and bounds as follows: (All bearings based on the Texas State
Plane Coordinate System, South Central Zone)

COMMENCING FOR REFERENCE at a 5/8-inch iron rod found in the west right-of-way
line of Huffmeister Road (100-foot wide right-of-way) at the southeast comer of
a called 5.1348 acre tract of land as described by deed recorded under Harris
County Clerk's File Number X647240 and being the northeast corner of said 19.855
acre tract, from which a 5/8-inch iron rod found at an angle point of a called
10.00 acre tract of land as described by deed recorded under Harris County
Clerk's File Number X647241 and said 19.855 acre tract bears South 87 degrees
37' 41" West, a distance of 413.32 feet;

THENCE, South 02 degrees 41' 38" East, along said west right-of-way line, a
distance of 55.63 feet to the POINT OF BEGINNING and being the northeast corner
of the herein described tract;

THENCE, South 02 degrees 41' 38" East, continuing along said west right-of-way
line, a distance of 322.86 feet TO the beginning of a curve to the right at the
southeast corner of the herein described tract;

THENCE, southwesterly, a distance of 18.21 feet along the arc of said curve to
the right having a radius of 28.00 feet through a central angle of 37 degrees
15' 57" and a chord that bears South 68 degrees 59' 10" West, A distance of
17.89 feet to the point of tangency of said curve;

THENCE, South 87 degrees 37' 09" West, a distance of 233.74 feet to the
southwest corner of the herein described Tract;

THENCE, North 02 degrees 41' 38" West, a distance of 324.35 feet to the
northwest corner of the herein described Tract;

THENCE, North 86 degrees 39' 10" East, a distance of 250.74 feet to the POINT OF
BEGINNING and containing a compuTed area of 1.878 acres (81,823 square feet)
land.

This description is based on a survey made on the ground of the property and is
issued in conjunction with an exhibit map entitled "PROPOSED NORTHEAST PARKING
LOT" prepared by Benchmark Engineering Corporation, Job Number 03112.

<PAGE>

                                    EXHIBIT C

                              PERMITTED EXCEPTIONS

1.    All taxes for the year 2005 and subsequent years not yet due and payable,
      and any additional taxes resulting from reassessment of subject property.

2.    Restrictions recorded in Volume 5943, Page 51, of the Deed Records of
      Harris County, Texas.

3.    Terms, conditions and stipulations regarding development of the subject
      property, as set forth and defined in instrument filed for record under
      Clerk's File No. R488062, of the Official Records of Harris County, Texas.

4.    Easement to Harris County Municipal Utility District No. 248 recorded in
      Clerk's File No. T954404, of the Official records of Harris County, Texas
      granting an easement 20 feet wide along the north 83.13 feet of the east
      property line.

5.    Mineral and/or royalty interest recorded in Volume 5943, Page 51, of the
      Deed records of Harris County, Texas.

6.    Mineral and/or royalty interest recorded in Volume 7725, Page 211, of the
      Deed records of Harris County, Texas.

7.    Ordinance #1999-262, of the City of Houston, passed March 24, 1999, and
      amendments, pertaining to the platting and replatting of real property and
      the establishment of building set back lines along major thoroughfares
      within such boundaries.

8.    City of Houston Ordinance 91-1701 regarding the planting, preservation and
      maintenance of trees and decorative landscaping, a certified copy of which
      is filed for record under Clerk's File No. N556388, of the Official
      Records of Harris County, Texas.

9.    Inclusion within Harris County Municipal Utility District No. 248.

10.   Terms and conditions of that certain Net Ground Lease (Northeast Parking
      Parcel) between Northern Healthcare Land Ventures, Ltd., as Lessor and MPT
      of North Cypress, L.P. as Lessee, a memorandum of which is recorded June
      _____, 2005 under Clerk's File No. _____, of the Official Records of
      Harris County, Texas.

11.   Terms and conditions of that certain Net Ground Lease (Hospital Tract)
      between North Cypress Property Holdings, Ltd., as Lessor and MPT of North
      Cypress, L.P. as Lessee, a memorandum of which is recorded June _____,
      2005 under Clerk's File No. _____, of the Official Records of Harris
      County, Texas.

12.   Terms and conditions of that certain Reciprocal Easement Agreement and
      Declaration of Covenants, Conditions, and Restrictions for Development and
      Operation of the North

<PAGE>

      Cypress Medical Center Campus recorded June _____, 2005 under Clerk's File
      No. _____, of the Official Records of Harris County, Texas.

<PAGE>

                                    EXHIBIT D

                            FORM OF LETTER OF CREDIT

DATE

                    IRREVOCABLE STANDBY LETTER OF CREDIT NO.

TO:

WE HEREBY ESTABLISH OUR IRREVOCABLE LETTER OF CREDIT NO.        IN YOUR
FAVOR AT THE REQUEST AND FOR THE ACCOUNT OF          , FOR THE SUM NOT TO EXCEED
IN ALL U.S. DOLLARS                   (US $            ) AVAILABLE BY YOUR SIGHT
DRAFT ON US, ACCOMPANIED BY:

1.    BENEFICIARY'S STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED
      REPRESENTATIVE OF                 CERTIFYING THAT PAYMENT WAS NOT RECEIVED
      FROM                       AND REMAINS UNPAID AT THE TIME OF DRAWING.

2.    INVOICE SHOWING THE AMOUNT OWED.

PARTIAL DRAWINGS ARE PERMITTED.

ALL DRAFTS SO DRAWN MUST BE MARKED "DRAWN UNDER REPUBLIC NATIONAL BANK STANDBY
LETTER OF CREDIT NO. , DATED               .

THIS CREDIT EXPIRES AT OUR COUNTERS ON          . THE ORIGINAL OF THIS LETTER OF
CREDIT MUST ACCOMPANY ALL DRAWINGS.

WE HEREBY ENGAGE WITH YOU THAT ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE
TERMS OF THIS LETTER OF CREDIT WILL BE DULY HONORED BY US UPON PRESENTATION.

THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS, INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 500 (1993
REVISION).

REPUBLIC NATIONAL BANK

<PAGE>

                                    EXHIBIT E

                       RESTRICTIONS, RULES AND REGULATIONS

OPERATIONS AND USE

NAME OF CAMPUS

1. The name of the Campus is North Cypress Medical Center Campus and the name
may not be changed without prior written consent of all the Parties.

PERMITTED USES

2. Subject to the limitations set forth in this Article, the Campus may be used
only for the development, construction, leasing, operation, and maintenance of
hospitals, professional office buildings, medical services, retail business
establishments and related facilities (such as the Common Areas) customarily
located in a first class medical Campus.

PROHIBITED NUISANCES

3. No Party may conduct or permit any activity or use on its Parcel that:

(a) Constitutes a private or public nuisance.

(b) Emits any noise or sound that is objectionable due to intermittence,
loudness, frequency, beat, or pitch.

(c) Emits any obnoxious odor.

(d) Involves the use of any noxious, toxic, hazardous, or corrosive chemical,
fuel, gas, or other substance, except in the Hospital Areas where such
substances may be used in connection with the provision of medical services or
in the operation of the hospital in the Hospital Areas.

(e) Produces dust or dirt.

(f) Involves a risk of fire, explosion, or other dangerous hazard.

(g) Involves the burning or incineration of garbage or refuse.

(h) Violates a law, ordinance, or regulation of any governmental agency.

PROHIBITED OPERATIONS AND USES

4. No Parcel may be used for any of the following:

<PAGE>

(a) Storage or warehousing, except by a retail establishment for temporary
storage of goods intended for sale at its establishment, or by a hospital for
temporary storage of goods intended for use in the operation of the hospital.

(b) Manufacturing, industrial, or residential uses.

(c) Displaying merchandise in Common Areas.

(d) Entertainment or recreational uses which include, but are not limited to:
bowling alleys; skating rinks; theaters; video or other game arcades; health
spas (except in the Hospital Areas), studios, gyms, night clubs; massage
parlors; pool or billiard halls; pornographic or sexually oriented stores,
materials including books, videos, films, discs or sex performances, and card
rooms.

(e) Educational, training, or instructional uses, such as beauty schools, barber
colleges, business or technical colleges, or other facilities oriented toward
students or trainees rather than customers), provided nothing in this
subparagraph shall be deemed to prohibit a hospital from being a teaching
hospital.

FAST-FOOD USES

5. "Fast-food" establishments are permitted on the Campus.

RESTAURANT USES

6. Restaurants are permitted in the Campus subject to the following conditions:

(a) The restaurant is located in the Commercial Areas.

(b) A restaurant is located in the Hospital Areas as an accessory use to the
operation of the Hospital Areas.

(c) An Occupant operating a restaurant must, at the Occupant's sole cost and
expense, keep the Common Areas at all times free of trash and debris generated
by the restaurant and its customers. No portion of this cost may be included in
the Common Area Maintenance Costs.

(d) A lease to an Occupant operating a restaurant must contain provisions
incorporating the preceding requirements.

RULES AND REGULATIONS

7. The Parties may from time to time adopt Rules and Regulations pertaining to
the use of all Common Areas and other areas of the Campus by Occupants and
Users, provided that no rule or regulation shall abrogate or modify the rights
granted to any Party under this Agreement. Moreover, all Rules and Regulations
apply equally and without discrimination to all Owners, Users and Occupants. As
part of its obligations to manage, operate, and maintain the Campus,

<PAGE>

the Owner must enforce these Rules and Regulations with respect to the Owner's
Parcel. No portion of the Common Areas may be used for commercial purpose by an
Occupant or User except as permitted by this Agreement or by the Rules and
Regulations.

SIGNS

8. The regulations and restrictions for posting signs in Commercial Areas of the
Campus are:

No sign, symbol, advertisement, or billboard may be constructed, used,
maintained, erected, posted, displayed, or permitted on or about any portion of
the Campus except as expressly allowed as follows

(a) One storefront, establishment name sign may be used for each retail
establishment in the Campus provided that such sign:

      (i) Identifies the name, business, or symbol of the establishment.

      (ii) Does not advertise any particular item of merchandise (other than as
may be contained in the store's trade name).

      (iii) Is harmonious with the general exterior architectural style of the
buildings in the Campus.

      (iv) Is of a type, size, and design commonly found in first class regional
centers.

      (v) Complies with the dimensional, floor level elevation, location, and
style of lettering specifications approved by the Project Architect. The Project
Architect has approved the foregoing signage specifications for the construction
of the hospital in the Hospital Areas.

      (vi) Otherwise complies with the sign criteria and requirements
established in this document.

      (vii) Has been approved by the Project Architect.

9. The regulations and restrictions for posting signs in the Hospital Areas of
the Campus are those which have been approved by the Project Architect
(hereinafter defined).

SOUND AND LIGHT PROJECTIONS

10. No Occupant may operate or maintain any system or electronic device (such as
loudspeakers or search lights) that projects sound or light beyond the confines
of the Occupant's retail establishment. A sound system for the Campus as a
whole, if approved by the Parties, may be installed for general promotional
purposes.

<PAGE>

                                   SCHEDULE 3

                       GROUND RENT COMPONENT OF BASE RENT

<TABLE>
<CAPTION>
                                           Annual Ground       Monthly
            Period                         Rent Component    Installment
            ------                         --------------    -----------
<S>                                        <C>               <C>
June 1, 2005 - December 31, 2009           $   502,300.00    $ 41,858.00

January 1, 2010 - December 31, 2014        $   542,484.00    $ 45,207.00

January 1, 2015 - December 31, 2019        $   585,883.00    $ 48,824.00

January 1, 2020 - December 31, 2024        $   632,753.00    $ 52,729.00

January 1, 2025 - December 31, 2029        $   683,373.00    $ 56,948.00

January 1, 2030 - December 31, 2034        $   738,043.00    $ 61,504.00

January 1, 2035 - December 31, 2039        $   797,087.00    $ 66,424.00

January 1, 2040 - December 31, 2044        $   860,854.00    $ 71,738.00

January 1, 2045 - December 31, 2049        $   929,722.00    $ 77,477.00

January 1, 2050 - December 31, 2054        $ 1,004,100.00    $ 83,675.00

January 1, 2055 - December 31, 2059        $ 1,084,428.00    $ 90,369.00

January 1, 2060 - December 31, 2064        $ 1,171,182.00    $ 97,598.00

January 1, 2065 - December 31, 2069        $ 1,264,876.00    $105,406.00

January 1, 2070 - December 31, 2074        $ 1,366,067.00    $113,839.00

January 1, 2075 - December 31, 2079        $ 1,475,352.00    $122,946.00

January 1, 2080 - December 31, 2084        $ 1,593,380.00    $132,782.00

January 1, 2085 - December 31, 2089        $ 1,720,850.00    $143,404.00

January 1, 2090 - December 31, 2094        $ 1,858,518.00    $154,877.00

January 1, 2095 - December 31, 2099        $ 2,007,200.00    $167,267.00

January 1, 2100 - May 31, 2104             $ 2,167,776.00    $180,648.00
</TABLE>

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