Document:

EX-4.1

 [Face of Security] 

FEDERAL REALTY INVESTMENT TRUST 

4.50% Note due 2044 
  

	 CUSIP No. 313747 AV9 
	 $250,000,000 

 UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITORY”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR OF
THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR. 
 THIS NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND
INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF. 
 FEDERAL REALTY INVESTMENT TRUST, a Maryland real estate investment trust (herein
referred to as the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to Cede & Co. or registered assigns the principal sum
of Two Hundred Fifty Million Dollars ($250,000,000) on December 1, 2044 (the “Stated Maturity Date”) or the date fixed for earlier redemption (the “Redemption Date,” and together with the Stated Maturity Date with respect to
principal repayable on such date, the “Maturity Date”), and to pay interest on the outstanding principal amount thereof from November 14, 2014 or from the most recent interest payment date to which interest has been paid or duly
provided for, semi-annually on June 1 and December 1 in each year (each, an “Interest Payment Date”), commencing June 1, 2015, at the rate of 4.50% per annum, until the principal hereof is paid or duly provided for. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Holder in whose name this Note (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be on May 15 or November 15 (whether or not a Business Day, as defined below), as the case may be, next preceding such Interest Payment Date at the office or agency of the
Company maintained for such purpose; provided, however, that such interest may be paid, at the Company’s option, by mailing a check to such Holder at its registered address or by transfer of 

 
funds to an account maintained by such Holder within the United States. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date, and may be paid to the Holder in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee
referred to on the reverse hereof, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve
30-day months. 
 The principal of this Note payable on the Stated Maturity Date or the principal of, premium, if any, and, if the
Redemption Date is not an Interest Payment Date, interest on this Note payable on the Redemption Date will be paid against presentation of this Note at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The
City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts. 

Interest payable on this Note on any Interest Payment Date and on the Maturity Date, as the case may be, will include interest accrued from
and including the next preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including November 14, 2014, if no interest has been paid on this Note) to but excluding such Interest Payment
Date or the Maturity Date, as the case may be. If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, principal, premium, if any, and/or interest payable with respect to such Interest Payment Date or Maturity
Date, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and after such
Interest Payment Date or Maturity Date, as the case may be. “Business Day” means any day, other than a Saturday or Sunday, on which banks in The City of New York and the City of Charlotte, State of North Carolina, are not required or
authorized by law or executive order to close. 
 All payments of principal, premium, if any, and interest in respect of this Note will be
made by the Company in immediately available funds. 
 Reference is hereby made to the further provisions of this Note set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
Certificate of Authentication hereon has been executed by the Trustee by manual signature of one of its authorized signatories, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

[This space intentionally left blank] 

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: November 14, 2014 
  

			
	FEDERAL REALTY INVESTMENT TRUST
		
	By:	 	  

		 	Donald C. Wood
		 	Trustee
		
	By:	 	  

		 	James M. Taylor, Jr.
		 	Executive Vice President-Chief Financial Officer and Treasurer

  

	
	Attest:
	
	  

	 Dawn M. Becker
 Executive Vice President-General
Counsel
 and Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is the Note of the series designated therein referred to in the within-mentioned Indenture. 

Dated: November 14, 2014 
  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Signatory

 [Reverse of Security] 

FEDERAL REALTY INVESTMENT TRUST 

4.50% Note due 2044 
 This Note
is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of September 1, 1998 (herein called the
“Indenture”), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture with respect to the series of which this Note is a
part), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Note is one of the duly authorized series of Securities designated as “4.50% Notes due 2044” (collectively, the
“Notes”), and the aggregate principal amount of the Notes to be issued under such series is initially limited to $250,000,000 (except for Notes authenticated and delivered upon transfer of, or in exchange for, or in lieu of other Notes).
The Company may, without the consent of the Holders of any Securities, create and issue additional notes in the future having the same terms other than the date of original issuance, the issue price and the date on which interest begins to accrue so
as to form a single series with the Notes. The Notes are the unsecured and unsubordinated obligations of the Company and rank equally with all existing and future unsecured and unsubordinated indebtedness of the Company. All terms used in this Note
which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 If an Event of Default, as defined herein,
shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

As used herein: 

“Event of Default” means any one of the following events (whatever the reason for such Event of Default and
whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

(1) default in the payment of any interest upon or any Additional Amounts payable in respect of the Notes when such interest or
Additional Amounts becomes due and payable, and continuance of such default for a period of 30 days; 
 (2) default in the
payment of the principal of (or premium, if any, on) the Notes when it becomes due and payable at its Maturity; 
 (3)
default in the deposit of any sinking fund payment, when and as due by the terms of the Notes; 
 (4) default in the
performance, or a breach, of any covenant or agreement by the Company under the Indenture (other than a covenant or agreement a default in whose 

 
performance or whose breach is elsewhere in this definition of Event of Default specifically dealt with), and continuance of such default or breach for a period of 60 days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the outstanding Notes a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” under the Indenture; 
 (5)
default under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company (including obligations under leases required to be capitalized on the balance sheet of the lessee under generally accepted accounting
principles but not including any indebtedness or obligations for which recourse is limited to property purchased) in an aggregate principal amount in excess of $25,000,000 or under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company (including such leases but not including such indebtedness or obligations for which recourse is limited to property purchased) in an aggregate
principal amount in excess of $25,000,000 by the Company, whether such indebtedness now exists or shall hereafter be created, which default shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise have become due and payable or such obligations being accelerated, without such acceleration having been rescinded or annulled; 

(6) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(a) is for relief against the Company or any Significant Subsidiary in an involuntary case, 

(b) appoints a Custodian of the Company or any Significant Subsidiary or for all or substantially all of either of its property, or 

(c) orders the liquidation of the Company or any Significant Subsidiary, and the order or decree remains unstayed and in effect for 90 days;
or 
 (7) the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

(a) commences a voluntary case or proceeding, 

(b) consents to the entry of an order for relief against it in an involuntary case or proceeding, 

(c) consents to the appointment of a Custodian of it or for all or substantially all of its property, or 

(d) makes a general assignment for the benefit of its creditors. 

  
 5 

 The defeasance and covenant defeasance provisions of the Indenture apply to the Notes. The Notes
will not be entitled to the benefits of any sinking fund. 
 The Notes are subject to redemption at any time, in whole or in part, at the
election of the Company, at a redemption price equal to (x) if the Notes are redeemed before June 1, 2044, the greater of (1) 100% of the principal amount of the Notes being redeemed, or (2) as determined by the Quotation Agent
(as defined below), the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 25 basis points (twenty-five one-hundredths of one percent) plus, in each case, accrued interest thereon to, but
excluding, the Redemption Date or (y) if the Notes are redeemed on or after June 1, 2044, 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date; provided, however,
that installments of interest on this Note whose Stated Maturity Date is on or prior to such Redemption Date will be payable to the Holder of this Note, or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture. 
 As used herein: 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Notes. 
 “Comparable Treasury Price” means, with respect to any
Redemption Date, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than five such
Reference Treasury Dealer quotations, the average of all such Quotations. 
 “Quotation Agent” means the
Reference Treasury Dealer appointed by the Company. 
 “Reference Treasury Dealer” means (1) a Primary
Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc. and their respective successors; provided, however, that if any of the
Reference Treasury Dealers ceases to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury Dealer, and (2) any two other Primary Treasury Dealers
selected by the Company. 

  
 6 

 “Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to
the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

Notice of any redemption will be given by mail to Holders of Securities, not less than 20 nor more than 60 days prior to the Redemption Date,
all as provided in the Indenture. 
 In the event of redemption of this Note in part only, a new Note or Notes for the unredeemed portion
hereof shall be issued in the name of the Holder hereof upon the cancellation hereof. 
 The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company and the Trustee with the consent of the Holders
of not less than a majority of the aggregate principal amount of all Securities issued under the Indenture at the time Outstanding and affected thereby. The Indenture also contains provisions permitting the Holders of not less than a majority of the
aggregate principal amount of the Outstanding Securities, on behalf of the Holders of all such Securities, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture permit the Holders of
not less than a majority of the aggregate principal amount, in certain instances, of the Outstanding Securities of any series to waive, on behalf of all of the Holders of Securities of such series, certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the times, places and rate, and in the
coin or currency, herein prescribed. 
 The Company will not, and will not permit any Subsidiary to, incur any Debt (as defined below) if,
immediately after giving effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance
with generally accepted accounting principles is greater than 60% of the sum of (without duplication) (i) Total Assets as of the end of the calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form
10-Q, as the case may be, most recently filed with the Securities and Exchange Commission (or, if such filing is not permitted under the Securities Exchange Act of 1934, with the Trustee) prior to the incurrence of such additional Debt and
(ii)

  
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the purchase price of any real estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire
real estate assets or mortgages receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt. 

In addition to the foregoing limitation on the incurrence of Debt, the Company will not, and will not permit any Subsidiary to, incur any Debt
secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any property of the Company or any Subsidiary if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds
thereof, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis which is secured by any mortgage, lien, charge, pledge, encumbrance or security interest on property of the Company or any
Subsidiary is greater than 40% of the sum of (without duplication) (1) Total Assets as of the end of the calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most
recently filed with the Securities and Exchange Commission (or, if such filing is not permitted under the Securities Exchange Act of 1934, with the Trustee) prior to the incurrence of such additional Debt and (2) the purchase price of any real
estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or
any Subsidiary since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt; provided, however, that for purposes of this limitation, the amount of obligations under capital
leases shown as a liability on the Company’s consolidated balance sheet shall be deducted from Debt and Total Assets. 
 Furthermore,
the Company will not, and will not permit any Subsidiary to, incur any Debt if the ratio of Consolidated Income Available for Debt Service (as defined below) to the Annual Debt Service Charge (as defined below) for the four consecutive fiscal
quarters most recently ended prior to the date on which such additional Debt is to be incurred shall have been less than 1.5 to 1, on an unaudited pro forma basis after giving effect thereto and to the application of the proceeds therefrom, and
calculated on the assumption that: (i) such Debt and any other Debt incurred by the Company and its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Debt,
had occurred at the beginning of such period; (ii) the repayment or retirement of any other Debt by the Company and its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period
(except that, in making such computation, the amount of Debt under any revolving credit facility shall be computed based upon the average daily balance of such Debt during such period); (iii) in the case of Acquired Debt or Debt incurred in
connection with any acquisition since the first day of such four-quarter period, the related acquisition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition being included in such
unaudited pro forma calculation; and (iv) in the case of any acquisition or disposition by the Company or its Subsidiaries of any asset or group of assets since the first day of such four-quarter period, whether by merger, stock purchase or
sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Debt had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such
unaudited pro forma calculation. 

  
 8 

 Furthermore, the Company and its Subsidiaries taken as a whole, will, at all times maintain an
Unencumbered Total Asset Value (as defined below) in an amount not less than 150% of the aggregate outstanding principal amount of the unsecured Debt of the Company and its Subsidiaries, taken as a whole. 

As used herein, 

“Acquired Debt” means Debt of a Person (i) existing at the time such Person becomes a Subsidiary or
(ii) assumed in connection with the acquisition of assets from such Person, in each case, other than Debt incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition. Acquired Debt shall be deemed
to be incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary. 

“Annual Debt Service Charge” as of any date means the maximum amount which is payable in any period for
interest on, and original issue discount of, Debt of the Company and its Subsidiaries and the amount of dividends which are payable in respect of any Disqualified Stock (as defined below). 

“Capital Stock” means, with respect to any Person, any capital stock (including preferred stock), shares,
interests, participations or other ownership interests (however designated) of such Person and any rights (other than debt securities convertible into or exchangeable for corporate stock), warrants or options to purchase any thereof. 

“Consolidated Income Available for Debt Service” for any period means Funds from Operations (as defined below)
of the Company and its Subsidiaries plus amounts which have been deducted for interest on Debt of the Company and its Subsidiaries. 

“Debt” means any indebtedness of the Company, or any Subsidiary, whether or not contingent, in respect of
(without duplication) (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the
Company or any Subsidiary, (iii) the reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property or
services, except any such balance that constitutes an accrued expense or trade payable, or all conditional sale obligations or obligations under any title retention agreement, (iv) the principal amount of all obligations of the Company or any
Subsidiary with respect to redemption, repayment or other repurchase of any Disqualified Stock or (v) any lease of property by the Company or any Subsidiary as lessee which is reflected on the Company’s consolidated balance sheet as a
capitalized lease in accordance with generally accepted accounting principles to the extent, in the case of items of indebtedness under (i) through (iii) above, that any such items (other than letters of credit) would appear as a

  
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liability on the Company’s consolidated balance sheet in accordance with generally accepted accounting principles, and also includes, to the extent not otherwise included, any obligation of
the Company or any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business or for the purposes of guaranteeing the payment of all amounts due and owing
pursuant to leases to which the Company is a party and has assigned its interest, provided that such assignee of the Company is not in default of any amounts due and owing under such leases), Debt of another Person (other than the Company or
any Subsidiary) (it being understood that Debt shall be deemed to be incurred by the Company or any Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof). 

“Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person which by the terms of
such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (i) matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, (ii) is convertible into or exchangeable or exercisable for Debt or Disqualified Stock or (iii) is redeemable at the option of the holder thereof, in whole or in part, in each case on or prior to the Stated
Maturity of the Notes. 
 “Funds from Operations” for any period means income available to common
shareholders before depreciation and amortization of real estate assets and before extraordinary items less gain on sale of real estate. 

“Total Assets” as of any date means the sum of (i) the Company’s and its Subsidiaries’
Undepreciated Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries determined in accordance with generally accepted accounting principles (but excluding goodwill). 

“Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital improvements) of
real estate assets of the Company and its Subsidiaries on such date, before depreciation and amortization determined on a consolidated basis in accordance with generally accepted accounting principles. 

“Unencumbered Total Asset Value” as of any date means the sum of (i) those Undepreciated Real Estate
Assets not encumbered by any mortgage, lien, charge, pledge or security interest and (ii) all other assets of the Company and each of its Subsidiaries on a consolidated basis determined in accordance with generally accepted accounting
principles (but excluding intangibles and accounts receivable), in each case which are unencumbered by any mortgage, lien, charge, pledge or security interest; provided, however, that in determining Unencumbered Total Asset Value for purposes of the
covenant relating to the maintenance of Unencumbered Total Asset Value, all investments by the Company and any of the Company’s subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability
companies and other unconsolidated entities accounted for financial reporting purposes using the equity method of accounting in accordance with U.S. generally accepted accounting principles shall be excluded from Unencumbered Total Asset Value. 

  
 10 

 Furthermore, the Company will, and will cause each of its Subsidiaries to, maintain insurance
with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by Persons engaged in similar businesses or as may be required by applicable law, and the Company will from time to time
deliver to the Administrative Agent (as such term is defined in the Credit Agreement, dated as of July 7, 2011, between the Company and the various financial institutions named therein, as amended), upon its request a detailed list, together
with copies of all policies of the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby. 

As provided in the Indenture and subject to certain limitations therein and herein set forth, the transfer of this Note is registrable in the
Security Register of the Company upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 As provided in the
Indenture and subject to certain limitations therein and herein set forth, this Note is exchangeable for a like aggregate principal amount of Notes of different authorized denominations but otherwise having the same terms and conditions, as
requested by the Holder hereof surrendering the same. 
 The Securities of this series are issuable only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be performed entirely in such State. 

  
 11Exhibit 10.28

 

AGREEMENT FOR LEASE OF REAL PROPERTY

 

PINNACLE HEALTH PORTFOLIO

 

BLOOM MOB: 4310 LONDONDERRY ROAD, HARRISBURG,
PA

BRADY MOB: 205 SOUTH FRONT STREET, HARRISBURG,
PA

COMMUNITY HEALTH MOB: 2645 NORTH THIRD
STREET, HARRISBURG, PA

FOC MOB: 2005, 2015 AND 2025 TECHNOLOGY
PARKWAY, MECHANICSBURG, PA

LANDIS MEMORIAL: 2501
NORTH THIRD STREET, HARRISBURG, PA

and

MEDICAL SCIENCES PAVILION:
4300 LONDONDERRY ROAD, HARRISBURG, PA

 

THIS AGREEMENT FOR
LEASE OF REAL PROPERTY (this “Agreement”) is made and entered into as of the Effective Date by and among
AMERICAN REALTY CAPITAL VII, LLC, a Delaware limited liability company (“Lessee”), as lessee, and PINNACLE
HEALTH HOSPITALS, a Pennsylvania non-profit corporation (“Bloom Lessor,” “Brady Lessor,”
“Community Health Lessor,” “FOC Lessor,” “Landis Lessor”
and “Medical Sciences Lessor;” Medical Sciences Lessor, together with Bloom Lessor, Brady Lessor, Community
Health Lessor, FOC Lessor, and Landis Lessor, are referred to herein, individually and collectively, as “Lessor”),
as lessor.

 

BACKGROUND

 

A.           Bloom
Lessor is the fee owner of the Real Property described on Exhibit A-1-1 attached hereto and made a part hereof (the “Bloom
Real Property”).

 

 

B.           Brady
Lessor is the fee owner of the Real Property described on Exhibit A-1-2 attached hereto and made a part hereof (the “Brady
Real Property”).

 

C.           Community
Health Lessor is the fee owner of the Real Property described on Exhibit A-1-3 attached hereto and made a part hereof (the “Community
Health Real Property”).

 

D.           FOC
Lessor is the fee owner of the Real Property described on Exhibit A-1-4 attached hereto and made a part hereof (the “FOC
Real Property”).

 

E.           Landis
Lessor is the fee owner of the Real Property described on Exhibit A-1-5 attached hereto and made a part hereof (the “Landis
Real Property”).

 

F.           Medical
Sciences Lessor is the fee owner of the Real Property described on Exhibit A-1-6 attached hereto and made a part hereof (the “Medical
Sciences Real Property”).

 

I.           Lessee
desires to lease the Property (defined below) from Lessor and Lessor desires to lease the Property to Lessee on the terms and
conditions set forth in this Agreement.

 

    	 

    	 

    

 

In consideration of
the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.          Terms
and Definitions. The terms listed below shall have the respective meaning given them as set forth adjacent to each term.

 

(a)          “Bloom
Property” shall mean the Bloom Real Property and all matters described in (ii)-(vii) of the definition of “Property”
in connection with the Bloom Real Property.

 

(b)          “Brady
Property” shall mean the Brady Real Property and all matters described in (ii)-(vii) of the definition of “Property”
in connection with the Brady Real Property.

 

(c)          “Broker”
shall mean Hammond Hanlon Camp LLC, acting as Lessor’s
agent.

 

(d)          “Closing”
shall mean the consummation of the transaction contemplated herein, which shall occur, subject to any applicable extension
periods set forth in this Agreement, on the date that is five (5) business days after the last day of the Due Diligence Period
(as defined herein) unless the Lessee waives the full Due Diligence Period and elects to close earlier by providing written notice
thereof to Lessor. The date of Closing is sometimes hereinafter referred to as the “Closing Date.” Neither
party will need to be present at Closing, it being anticipated that the parties will deliver all Closing documents and deliverables
in escrow to the Escrow Agent (or if both Lessee and Lessor agree, to Lessee’s and/or Lessor’s counsel) prior to the
date of Closing. 

 

(e)          “Community
Health Property” shall mean the Community Health Real Property and all matters described in (ii)-(vii) of the definition
of “Property” in connection with the Community Health Real Property.

 

(f)          “Due
Diligence Period” shall mean the period beginning upon the Effective Date and extending until 11:59 PM EDT on the
date that is thirty (30) days thereafter or the date on which Lessor receives written notice of Lessee’s waiver of the Due
Diligence Period. Lessor shall deliver to Lessee all of the Due Diligence Materials within five (5) business days after the Effective
Date, and for each day that passes thereafter until all of the Due Diligence Materials are delivered to Lessee, the Due Diligence
Period and the Closing Date shall be extended by one (1) business day.

 

(g)          “Earnest
Money” shall mean Eight Million Seven Hundred Thousand and No/100 Dollars ($8,700,000.00). The Earnest Money shall
be delivered to Escrow Agent within three (3) business days after the Effective Date. The Earnest Money shall be deposited by
Lessee in escrow with Escrow Agent, to be applied as part payment of the Leasehold Transaction Price at the time of Closing, or
disbursed as agreed upon in accordance with the terms of this Agreement. Lessor and Lessee each shall pay one-half of all reasonable
escrow fees charged by Escrow Agent.

 

    	2

    	 

    

 

(h)          
“Effective Date” The date that is one (1) business day after the date of execution and delivery of this
Agreement by both Lessor and Lessee shall be the “Effective Date” of this Agreement.

 

(i)          “Escrow
Agent” shall mean Stewart Title Guaranty Company, whose address is One Washington Mall - Suite 1400, Boston, MA
02108, Attention: Annette Comer, Telephone: 617-933-2441, Telecopy: 617-727-8372; E-Mail: acomer@stewart.com. The parties agree
that the Escrow Agent and Lessee’s title agent, if any, shall be responsible for (x) organizing the issuance of the Title
Commitment (hereinafter defined) and Title Policy (hereinafter defined), (y) preparation of the closing statement, and (z) collections
and disbursement of the funds.

 

(j)          “FOC
Property” shall mean the FOC Real Property and all matters described in (ii)-(vii) of the definition of “Property”
in connection with the FOC Real Property.

 

(k)          
“Ground Leases” shall mean the ground leases for the Leasehold Properties to be entered into at Closing
between Lessor, as landlord, and Lessee, as tenant. Each of the Ground Leases may be referred to herein individually as a “Ground
Lease” or the “Ground Lease.”

 

(l)          “Guarantors”
shall mean the guarantors under the Guaranties. Each of the Guarantors may be referred to herein individually as a “Guarantor”
or the “Guarantor.”

 

(m)          “Guaranties”
shall mean the Lease guaranties executed by the Guarantors. Each of the Guaranties may be referred to herein individually
as a “Guaranty” or the “Guaranty.”

 

(n)          “Landis
Property” shall mean the Landis Real Property and all matters described in (ii)-(vii) of the definition of “Property”
in connection with the Landis Real Property.

 

(o)          “Leasehold
Properties” shall mean all of the Properties.

 

(p)          “Leasehold
Transaction Price” shall mean One Hundred Seventy Four Million Sixty Thousand and No/100 Dollars ($174,060,000.00).
The allocation of the Leasehold Transaction Price and the Earnest Money among the Properties is set forth on Schedule 1 attached
hereto.

 

(q)          “Leases”
shall mean those certain leases described on Exhibit A-2 attached hereto and made a part hereof and referred to in Section
6(b)(i) of this Agreement between Lessor, as landlord, and the tenants described on Exhibit A-2 attached hereto, as tenant (each
tenant, individually, a “Tenant”, and collectively, the “Tenants”), as amended.
Each of the Leases may be referred to herein individually as a “Lease” or the “Lease.”

 

(r)          
“Medical Sciences Property” shall mean the Medical Sciences Real Property and all matters described
in (ii)-(vii) of the definition of “Property” in connection with the Medical Sciences Real Property.

 

    	3

    	 

    

 

(s)          “Pinnacle
Leases” shall mean, collectively, the space leases for (i) the Bloom Real Property, (ii) the Brady Real Property,
(iii) the Community Health Real Property, (iv) the FOC Real Property (to consist of three separate leases, namely, the FOC Clinical
Lease, the FOC I Lease and the FOC II Lease), (v) the Landis Real Property and (vi) the Medical Sciences Real Property to be entered
into at Closing between Lessee, as landlord, and Pinnacle Tenant, as tenant. Each of the Pinnacle Leases may be referred to herein
individually as a “Pinnacle Lease” or the “Pinnacle Lease.”

 

(t)          “Pinnacle
Tenant” shall mean PinnacleHealth, a Pennsylvania non-profit corporation.

 

(u)          “Property”
shall collectively mean (i) those certain parcels of real property which are listed on Exhibits A-1-1 through and A-1-6 attached
hereto, together with all right, title and interest of Lessor, if any, in and to the land lying in the bed of any street or highway
in front of or adjoining such real property, and all appurtenances and all the estate and rights of Lessor, if any, in and appurtenant
to such parcels of real property, including, without limitation, all appurtenant easements and rights-of-way, and all air and
subsurface rights appurtenant to such parcels of real property, as the case may be (such parcels of real property, together with
all such rights and appurtenances, being collectively referred to herein as the “Real Property”); (ii) all
of the buildings (each individually called a “Building” and collectively called the “Buildings”),
facilities and other improvements situated on the Real Property or required to be constructed under the respective Leases (collectively,
the “Improvements”); (iii) all right, title and interest of Lessor, if any, in and to the lighting,
electrical, mechanical, plumbing and heating, ventilation and air conditioning systems used in connection with the Real Property
and the Buildings, and all carpeting, draperies, appliances and other fixtures and equipment attached or appurtenant to the Real
Property together with all personal property (other than furniture, equipment not necessary to operate the Buildings or building
systems and not permanently affixed to the Buildings or Real Property, trade fixtures and inventory) owned by Lessor and located
on the Real Property or on and/or in the Buildings (collectively, the “Personal Property”); (iv) all
right, title and interest of Lessor in and to all plans and specifications, architectural drawings, building permits and other
permits issued in connection with the construction, operation, use or occupancy of the Improvements, and all warranties and guaranties
respecting the Buildings and Personal Property; (v) to the extent not otherwise described in subsection (i), all right, title
and interest of Lessor in and to all leases respecting the Buildings and Personal Property, including, without limitation, all
prepaid rent or security or other deposits thereunder and all right, title and interest of the Affiliates under the Guaranties;
(vi) all right, title and interest of Lessor in and to all licenses, permits, authorizations and approvals issued by any governmental
agency or authority which pertain to the Real Property and the Buildings, to the extent they exist and are transferable and assignable;
and (vii) to the extent the same are assignable, all site plans, surveys, and plans which relate to the Real Property. Any references
to “Property” in the singular, such as references to “a Property” or “each Property”, refer
to an individual parcel of Real Property and all matters described in (ii)-(vii) in connection with such Real Property. Any references
to “Properties” refer to each Property collectively.

 

    	4

    	 

    

 

(v)         “Real
Estate Taxes” shall mean all real estate taxes, rollback taxes, personal property taxes, water and sewer use charges,
or payments in lieu of taxes, and any other charges and assessments constituting a lien on the Property.

 

(w)          Lessor
and Lessee’s Notice address 

 

(i)          “Lessor’s
Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:

 

PinnacleHealth

409 South 2nd Street

Suite 2B

Harrisburg, PA 17104

Attention: William H. Pugh, Senior
Vice President and CFO

Tel. No.: 717-231-8245

Email: wpugh@pinnaclehealth.org

 

And to:

 

Christopher P. Markley, Esq.

409 South 2nd Street

Suite 2C

Harrisburg, PA 17104

Tel. No.: 717-231-8210

Email: cmarkley@pinnaclehealth.org

 

And to:

 

Norris, McLaughlin & Marcus, P.A.

1611 Pond Road

Suite 300

Allentown, PA 18104

Attention: Matthew R. Sorrentino, Esq.

Tel. No.: 610-391-1800

Email: msorrentino@nmmlaw.com

 

(ii)         “Lessee’s
Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:

 

Michael Weil

c/o American Realty Capital Healthcare
Trust II, Inc.

405 Park Avenue, 2nd
Floor

New York, NY 10022

Tel. No.: (212) 415-6505

Fax No.: (857) 207-3397

Email: mweil@arlcap.com

 

    	5

    	 

    

 

And to:

 

Jesse Galloway, Esq.

c/o American Realty Capital Healthcare
Trust II, Inc.

405 Park Avenue, 14th Floor

New York, NY 10022

Tel. No.: (212) 415-6516

Fax No.: (646) 861-7751

Email: jgalloway@arlcap.com

 

And Due Diligence Materials (if provided
by email) to:

 

duediligence@arlcap.com

 

With hard copies and/or CDs to:

 

James A.
(Jim) Mezzanotte

c/o American Realty Capital VII,
LLC

7621 Little Avenue, Suite 200

Charlotte, North Carolina 28226

Tel. No.: (704) 626-4410

Fax No.: (212) 415.6507

Email: jmezzanotte@arlcap.com

 

2.          Lease
of the Property. Subject to the terms of this Agreement, Lessor agrees to lease to Lessee, and Lessee agrees to lease from
Lessor, the Property for the Leasehold Transaction Price.

 

3.          Payment
of Leasehold Transaction Price. 

 

(a)          The
Leasehold Transaction Price to be paid by Lessee to Lessor shall be paid by wire transfer of immediately available funds in the
amount of the Leasehold Transaction Price plus or minus prorations, credits and adjustments as provided in Section 4 and elsewhere
in this Agreement to Escrow Agent, at the time of Closing, or as otherwise agreed to between Lessee and Lessor.

 

(b)          The
parties agree that the value of the Personalty is de minimis, and no part of the Leasehold Transaction Price is
allocated to it.

 

4.          Proration
of Expenses and Payment of Costs and Recording Fees.

 

(a)          Prorations.
The following items will be prorated as of 12:01 A.M. on the Closing Date, with all items of income and expense for the Property
being borne by Lessee from and after (and including) the Closing Date: Tenant Receivables (hereinafter defined) and other income
and rents that have been collected by Lessor as of Closing; fees and assessments; prepaid expenses and obligations under service
contracts which are assigned, if any; accrued operating

 

    	6

    	 

    

 

expenses; ground rent and other amounts paid and payable under the Ground
Leases; Real Estate Taxes; and any assessments by private covenant for the then-current calendar year of Closing.

 

(b)          Taxes

 

(i)          If
Real Estate Taxes for the year of Closing are not known or cannot be reasonably estimated, Real Estate Taxes will be prorated
based on Real Estate Taxes for the year prior to Closing. Any additional Real Estate Taxes in the nature of “roll back”
taxes or relating to the year of Closing arising out of a change in the use of the Real Property and Improvements or a change
in ownership shall be paid by Lessor when due and payable, and Lessor will indemnify Lessee from and against any and all such
Real Estate Taxes arising out of the leasing of the Property, which indemnification obligation will survive the Closing.

 

(ii)         If
Lessor has engaged or will engage prior to the expiration of the Due Diligence Period, consultants for the purpose of protesting
the amount of taxes or the assessed valuation for certain tax periods for the Property (“Protest Proceedings”),
any cash refunds or proceeds actually distributed (collectively, “Cash Refunds”) will be apportioned
as described below. Any Cash Refunds (including interest thereon) on account of a favorable determination, after deduction of
costs and expenses incurred for such Protest Proceedings, shall be: (A) the property of Lessor to the extent such Cash Refunds
were for Real Estate Taxes paid by Lessor applicable to a period prior to the Closing Date; (B) prorated between Lessee and Lessor
for taxes paid for a period during which the Closing Date occurred; and (C) the property of Lessee for Real Estate Taxes for a
period after the Closing Date. Lessor and Lessee agree to notify the other in writing of any receipt of a Cash Refund within fifteen
(15) business days of receipt of such Cash Refund. To the extent either party obtains a Cash Refund, a portion of which is owed
to the other party, the receiving party shall deliver the Cash Refund to the other party within fifteen (15) Business Days of
its receipt. Lessee agrees and acknowledges that Lessor has the right to initiate proceedings to protest the valuation of any
of the Property prior to the expiration of the Due Diligence Period. Lessor agrees to give Lessee notice of Lessor’s intent
to initiate such proceedings prior to initiation of such proceedings and at any time subsequent to the end of the Due Diligence
Period shall obtain Lessee’s consent to initiation of such proceedings, which consent may be withheld in Lessee’s
sole discretion.         

 

(c)          Utilities.
Lessee will take all steps necessary to effectuate the transfer of all utilities to its name as of the Closing Date, and where
necessary, post deposits with the utility companies. The Lessor will ensure that all utility meters are read as of the Closing
Date. Lessor will be entitled to recover any and all deposits held by any utility company as of the Closing Date.

 

(d)          Tenant
Receivables. Rents due from Tenants under Leases (including operating expense and real estate tax contributions or reimbursements
and similar charges (collectively, “Pass-Through Expenses”)), set-offs due or required to be paid under
or by reason of the Leases (collectively called “Tenant Receivables”) shall be adjusted by appropriate
credit to the Lessor or Lessee (as the case may be) on the Closing Date. If, at the Closing Date, any Tenant is in arrears in
the payment of rents (“Uncollected Delinquent Tenant Receivables”), Lessor will disclose the same to
Lessee in writing or on the rent roll to be delivered to Lessee pursuant to Section 10 hereof and such amounts shall not be adjusted
on the Closing Date. Prior to the

 

    	7

    	 

    

 

Closing Date, Lessor shall use Lessor’s current business practices to collect Uncollected
Delinquent Tenant Receivables. If Lessee shall collect Uncollected Delinquent Tenant Receivables within ninety (90) days after
the Closing Date, then Lessee shall turn over to Lessor the arrearages so collected, less the reasonable cost of collection thereof,
if any; provided, however, Lessor may continue to seek to collect the Uncollected Delinquent Tenant Receivables by legal action
following the Closing Date. All rents collected by Lessee after the Closing Date (except for amounts specifically billed and paid
as end of year reconciliation payments for Pass-Through Expenses, which shall be separately accounted for and allocated, pro rata,
between Lessor and Lessee as their interest may appear) shall be first applied to rents due and payable after the Closing Date
and only the excess thereof shall be paid over to Lessor on account of the Uncollected Delinquent Tenant Receivables. Lessor shall
prepare the reconciliation for Pass-Through Expenses for the Property and provide such reconciliation to Lessee and Lessee’s
property manager. Lessee agrees to cause its property manager to cooperate with Lessor in preparing such reconciliation. To the
extent that items to be apportioned hereunder may be required to be paid directly by a Tenant under its Lease, the same shall
not be apportioned, provided, however, that such items shall have been paid by such Tenant currently through the month including
the Closing Date. The provisions of this subparagraph 4(d) shall survive Closing. Lessor expressly agrees that if Lessor receives
any amounts after the Closing Date which are attributable, in whole or in part, to any period after the Closing Date, Lessor will
notify Lessee of such fact and will remit to Lessee that portion of the monies so received by Lessor to which Lessee is entitled
within ten (10) business days after receipt thereof. With respect to unbilled Tenant Receivables, Lessee covenants and agrees
to cause its property manager to (A) bill the same in the ordinary course of its business and (B) cooperate with Lessor
to determine the correct amount of operating expenses and/or taxes due.

 

A reconciliation or
determination of Pass-Through Expenses, Uncollected Delinquent Tenant Receivables and unbilled Tenant Receivables due under the
Leases shall be made at Closing to the extent possible. To the extent such information is not available at Closing, the foregoing
shall be subject to adjustment following the Closing in accordance with the terms of Section 4(e), below. The provisions of this
Section 4(d) will survive the Closing.

 

(e)          If
final bills are not available or cannot be issued prior to Closing for any item being prorated under Section 4(a) through (d),
then, for each separate item for which an adjustment is to be made, the following will apply: (i) initially the matter subject
to allocation at Closing (including without limitation the Pass-Through Expenses) shall be re-prorated within sixty (60) days
following the Closing; (ii) a further adjustment of prorated items shall occur one hundred twenty (120) days following the close
of the calendar year in which the Closing occurs; and (iii) a final adjustment shall occur not later than thirty-six (36) months
after the Closing. All such rights and obligations under this Section 4(e) will survive the Closing.

 

(f)          All
security deposits under the Leases collected and not properly applied by Lessor as of the Closing (and interest thereon if required
by law or contract) must be transferred or credited to Lessee at Closing. As of the Closing, Lessee will assume each Lessor’s
obligations related to the security deposits, but only to the extent they are credited or transferred to Lessee.

 

    	8

    	 

    

 

(g)          Lessor
shall pay or be charged with the following costs and expenses in connection with this transaction:

 

(i)          100%
of all Title Policy premiums, including search costs and a survey endorsement, but excluding any other endorsements issued in
connection with such policies other than endorsements that Lessor elects to purchase to cover title issues, if any;

 

(ii)         Transfer
taxes and conveyance fees on the transfer or leasing of the Property;

 

(iii)        Broker’s
commission payments in accordance with Section 24 of this Agreement;

 

(iv)        All
fees relating to the granting, executing and recording of each Memo of Ground Lease (defined below) for each Property; and

 

(v)         Any
unpaid leasing commissions or tenant improvement allowances or future rent concessions under the Leases entered into as of the
Effective Date.

 

(h)          Lessee
shall pay or be charged with the following costs and expenses in connection with this transaction:

 

(i)          Title
Policy premiums for any endorsements issued in connection therewith other than endorsements that Lessor elects to purchase to
cover title issues, if any, and other than a survey endorsement;

 

(ii)         all
costs and expenses in connection with Lessee’s financing, including appraisal, points, commitment fees and the like and
costs for the filing of all documents necessary to complete such financing and related documentary stamp tax and intangibles tax;
and

 

(iii)        Lessee
shall pay for the cost of its own survey, Phase I environmental study and due diligence investigations.

 

(i)          Each
party shall pay its own legal fees incidental to the negotiation, execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby.

 

(k)          Lessor
and Lessee each shall pay one-half of all reasonable escrow fees charged by Escrow Agent.

 

5.          Title.
At Closing, Lessor agrees to lease the Properties to Lessee with title thereto being marketable, free and clear of all liens,
defects of title, conditions, easements, assessments, restrictions, and encumbrances except for Permitted Exceptions (as hereinafter
defined); provided, however, that Lessee agrees and acknowledges that, while each Property will have a surveyed legal description
at Closing, the Properties will not, as of the Closing, be subdivided in accordance with local municipal requirements. The term
“Permitted Exceptions” (as hereinafter defined) shall be deemed to include the absence of municipal subdivision approval.

 

    	9

    	 

    

 

6.          Examination
of Property. Lessor and Lessee hereby agree as follows:

 

(a)          Lessee
shall order a title commitment (the “Title Commitment”) from Escrow Agent, a survey and a zoning report
for each Property promptly after the date hereof. All matters shown in the Title Commitment, survey or zoning report (“Title
Matters”) with respect to which Lessee fails to object prior to the expiration of the Due Diligence Period shall
be deemed “Permitted Exceptions”. However, Permitted Exceptions shall not include, and Lessor shall
be obligated to remove of record prior to or at Closing, any mechanic’s lien or any monetary lien, fine or penalty, or any
bond indentures, deeds of trust, mortgage, or other loan documents secured by any Property, or any judgments and federal and state
tax liens (collectively, “Liens”). Lessor shall be required to cure or remove all Liens (by payment,
bond deposit or indemnity acceptable to Escrow Agent). Lessor shall have no obligation to cure any Title Matter objected to, except
the Liens as aforesaid, provided Lessor notifies Lessee of any objections which Lessor elects not to remove or cure within five
(5) business days following receipt of Lessee’s objections. In the event that Lessor refuses to remove or cure any objections,
Lessee shall have the right to terminate this Agreement upon written notice to Lessor given within five (5) business days after
receipt of Lessor’s notice, upon which termination the Earnest Money, and all interest earned thereon, shall be returned
to Lessee and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein. If any
matter not revealed in the Title Commitment is discovered by Lessee or by the Escrow Agent and is added to the Title Commitment
by the Escrow Agent at or prior to Closing, Lessee shall have until the earlier of (i) ten (10) days after the Lessee’s
receipt of the updated, revised Title Commitment showing the new title exception, together with a legible copy of any such new
matter, or (ii) the Closing Date, to provide Lessor with written notice of its objection to any such new title exception (an “Objection”).
If Lessor does not remove or cure such Objection prior to the Closing Date, Lessee may terminate this Agreement as to the applicable
Property, in which case the pro-rata portion of the Earnest Money set forth on Schedule 1 attached hereto applicable to such terminated
Property, together with all interest earned thereon, shall be returned to Lessee, and neither party shall have any further obligation
hereunder with respect to such terminated Property, except as otherwise expressly set forth herein. If Lessee terminates the Agreement
as to a Property pursuant to the immediately preceding sentence and the Title Matter at issue was intentionally caused by Lessor,
then upon such termination, Lessor shall reimburse Lessee for all out of pocket costs and expenses incurred by Lessee hereunder
in connection with Lessee’s diligence of such Property.

 

(b)          Within
five (5) business days following the Effective Date, Lessor shall provide to Lessee copies of the following documents and materials
pertaining to each Property to the extent within Lessor’s possession or reasonably obtainable by Lessor or Lessor’s
counsel: (i) a complete copy of all leases and lease guaranties affecting the Property and all amendments thereto and of all material
correspondence relating thereto; (ii) a copy of all surveys and site plans of the Property, including without limitation any as-built
survey obtained or delivered to tenants of the Property in connection with its construction; (iii) a copy of all architectural
plans and specifications and construction drawings and contracts for improvements located on the Property; (iv) a copy of Lessor’s
title insurance commitments and policies relating to the Property; (v) a copy of the certificate of occupancy (or local equivalent)
and zoning reports for the Property; and of all governmental permits/approvals; (vi) a copy of all environmental, engineering
and physical condition reports for the Property; (vii) copies of the Property’s real

 

    	10

    	 

    

 

estate tax bills for the current and
prior two (2) tax years or, if the Property has been owned by Lessor for less than two (2) tax years, for the period of ownership;
(viii) the operating budget and any common area maintenance (CAM) reconciliations of the Property for the current year and following
year, if available; (ix) the operating statements and delinquency reports of the Property for the twenty four (24) calendar months
immediately preceding the Effective Date or if a Tenant has been operating for less than twenty-four (24) months, for the period
of operation; (x) all service contracts and insurance policies which affect the Property, if any; (xi) a copy of all warranties
relating to the improvements constructed on the Property, including without limitation any structural slab or roof warranties;
(xii) a written inventory of all items of personal property to be conveyed to Lessee, if any; (xiii) Tenant financials for each
Tenant, to the extent reasonably available to Lessor and consistent with each such Tenant’s reporting requirements; (xiv)
a complete copy of any feasibility study completed by the developer of the Property; (xv) a
copy of all primary and secondary state licenses or regulatory permits for the Property; and (xvi) a
copy of any documents relating to a waiver of life safety code or physical plant requirements (collectively, the “Due
Diligence Materials”). Lessor shall deliver any other documents relating to the Property reasonably requested by
Lessee, to the extent within Lessor’s or its affiliates’ or agents’ possession or reasonably obtainable by Lessor,
within three (3) business days following such request. Additionally, during the term of this Agreement, Lessee, its agents and
designees, shall have the right to enter the Property for the purposes of inspecting the Property, conducting soil tests, and
making surveys, mechanical and structural engineering studies, inspecting construction, and conducting any other investigations
and inspections as Lessee may reasonably require to assess the condition and suitability of the Property; provided, however, that
such activities by or on behalf of Lessee on the Property shall not damage the Property nor materially interfere with construction
on the Property or the conduct of business by Tenants under the Leases; and provided further, however, that Lessee shall indemnify
and hold Lessor harmless from and against any and all claims or damages to the extent resulting from the activities of Lessee
on the Property, and Lessee shall repair any and all damage caused, in whole or in part, by Lessee and return the Property to
substantially its condition prior to such damage, which obligation shall survive Closing or any termination of this Agreement.
Lessor shall reasonably cooperate with the efforts of Lessee and the Lessee’s representatives to inspect the Property. After
the Effective Date, Lessee shall be permitted to speak and meet with the Tenants in connection with Lessee’s due diligence.
Upon signing this Agreement, Lessor shall provide Lessee with the name of a contact person(s) for the purpose of arranging site
visits. Lessee shall give Lessor reasonable written notice (which in any event shall not be less than two (2) business days) before
entering the Property, and Lessor may have a representative present during any and all examinations, inspections and/or studies
on the Property. Lessee shall have the unconditional right, for any reason or no reason, to terminate this Agreement by giving
written notice thereof to Lessor and the Escrow Agent prior to the expiration of the Due Diligence Period, in which event this
Agreement shall become null and void with respect to all Properties, Lessee shall receive a refund of the Earnest Money, together
with all interest earned thereon, and all rights, liabilities and obligations of the parties under this Agreement shall expire,
except as otherwise expressly set forth herein. Lessee shall also have the right to terminate this Agreement with respect to any
single Property if the Property subject to termination has specific material Lease, title, survey, property condition, zoning
or environmental issues that a commercially reasonable lessee would not elect to close over, in which event this Agreement shall
become null and void with respect to the terminated Property or Properties, Lessee shall receive a refund of the pro-rata portion
of the

 

    	11

    	 

    

 

Earnest Money set forth on Schedule 1 attached hereto applicable to such terminated Property or Properties, and all rights,
liabilities and obligations of the parties under this Agreement shall terminate with respect to (but only with respect to) such
terminated Properties, except as otherwise expressly set forth therein.

 

(c)          Within
two (2) business days following the Effective Date, Lessor shall request an Estoppel Certificate (defined below) from each Tenant
and a written waiver of right of first refusal, right of first offer or other purchase option that any party may have to purchase
any Property. It shall be a condition of Closing that Lessor shall have obtained an estoppel certificate in the form attached
hereto as Exhibit F (each, an “Estoppel Certificate,” and collectively, “Estoppel Certificates”)
from each Tenant, and Lessor shall use good faith efforts to obtain the same. Each Estoppel Certificate obtained by Lessor
shall be fully executed by the applicable Tenant and Guarantor(s), if any, and dated no earlier than thirty (30) days prior to
the date of Closing. In addition, the business terms of each Estoppel Certificate must be in accordance with and not contradict
the corresponding Lease. If any Lease and any amendments, bearing the original signatures of the landlord and tenant thereunder
have not been delivered to Lessee previously, a copy thereof confirming that the copy is true, correct and complete shall be attached
to the corresponding Estoppel Certificate. Lessor shall promptly deliver to Lessee photocopies or pdf files of each executed Estoppel
Certificate when Lessor receives the same.

 

(d)          If
the fee estate in any Property is encumbered by a mortgage that is not subordinate to the Ground Lease for such Property, it shall
be a condition of Closing that Lessor shall have obtained either: (i) a subordination agreement in form and substance reasonably
acceptable to Lessee from the holder of such mortgage, pursuant to which such mortgage will be subordinated to the applicable
Ground Lease (each, a “Fee Mortgage Subordination”); or (ii) a release of lien of mortgage in form and
substance reasonably acceptable to Lessee from the holder of such mortgage pursuant to which such Property is released from the
lien of said mortgage (each, a “Fee Mortgage Release”). Within two (2) business days following the Effective
Date, Lessor shall request the Fee Mortgage Subordination or Fee Mortgage Release from each such mortgagee.

 

(e)          Within
two (2) business days following the Effective Date, Lessor shall deliver to Lessee the form of Ground Lease. Lessee and Lessor
shall use good faith efforts to negotiate the final form of Ground Lease prior to the expiration of the Due Diligence Period.
The Ground Lease for each Leasehold Property shall reflect the term, rent, rent escalations and renewal options applicable to
such Leasehold Property described on Schedule 6(e) attached hereto and made a part hereof.

 

(f)          Within
two (2) business days following the Effective Date, Lessor shall deliver to Lessee the form of the Pinnacle Leases. Lessee and
Lessor shall use good faith efforts to negotiate the final form of the Pinnacle Leases prior to the expiration of the Due Diligence
Period. The Pinnacle Leases shall reflect the term, rent, rent escalations, suite number, square footage and renewal options applicable
to such Property described on Schedule 6(f) attached hereto and made a part hereof. The Pinnacle Leases for the Brady Property,
Community Health Property, FOC Property (limited to the FOC Clinical Lease), Landis Property and Medical Sciences Property shall
be triple-net (NNN). The Pinnacle Leases for the Bloom Property, FOC Property (limited to the FOC I Lease and the FOC II Lease)
shall be double-net (NN).

 

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(g)          Lessor
shall use good faith efforts to obtain estoppel certificates with respect to reciprocal easement agreements as may be reasonably
requested by Lessee.

 

7.          Risk
of Loss/Condemnation. Upon an occurrence of a casualty, condemnation or taking with respect to any Property, Lessor shall
notify Lessee in writing of same. Until Closing, the risk of loss or damage to the Property, except as otherwise expressly provided
herein, shall be borne by Lessor. In the event all or any portion of any Property is damaged in any casualty or condemned or taken
(or notice of any condemnation or taking is issued) so that: (a) any Tenant has a right of termination or abatement of rent under
its Lease, or (b) with respect to any casualty, if the cost to repair such casualty would exceed $250,000, or (c) with respect
to any condemnation, any Improvements or access to the Property or more than five percent (5%) of the Property is (or will be)
condemned or taken, then, Lessee may elect to terminate this Agreement with respect to such Property by providing written notice
of such termination to Lessor within ten (10) business days after Lessee’s receipt of written notice of such condemnation,
taking or damage, upon which termination the pro-rata portion of the Earnest Money set forth on Schedule 1 attached hereto applicable
to such terminated Property shall be returned to Lessee, and neither party hereto shall have any further rights, obligations or
liabilities under this Agreement with respect to such Property, except as otherwise expressly set forth herein. With respect to
any condemnation or taking (of any notice thereof), if Lessee does not elect to cancel this Agreement as aforesaid, there shall
be no abatement of the Leasehold Transaction Price and Lessor shall assign to Lessee at the Closing the rights of Lessor to the
awards, if any, for the condemnation or taking, and Lessee shall be entitled to receive and keep all such awards. With respect
to a casualty, if Lessee does not elect to terminate this Agreement with respect to any such Property or does not have the right
to terminate this Agreement as aforesaid, there shall be no abatement of the Leasehold Transaction Price and Lessor shall assign
to Lessee at the Closing the rights of Lessor to the proceeds under Lessor’s insurance policies covering such Property with
respect to such damage or destruction (or pay to Lessee any such proceeds received prior to Closing) and pay to Lessee the amount
of any deductible with respect thereto, and Lessee shall be entitled to receive and keep any monies received from such insurance
policies.

 

8.          Earnest
Money Disbursement. The Earnest Money shall be held by Escrow Agent, in trust, and disposed of only in accordance with the
following provisions:

 

(a)          If
the Closing occurs, Escrow Agent shall deliver the Earnest Money to, or upon the instructions of, Lessor and Lessee on the Closing
Date to be applied as part payment of the Leasehold Transaction Price. If for any reason the Closing does not occur, Escrow Agent
shall deliver the Earnest Money to Lessor or Lessee only upon receipt of a written demand therefor from such party, subject to
the following provisions of this clause (a). Subject to the last sentence of this clause (a), if for any reason the Closing does
not occur and either party makes a written demand (the “Demand”) upon Escrow Agent for payment of the
Earnest Money, Escrow Agent shall give written notice to the other party of the Demand within one (1) business day after receipt
of the Demand. If Escrow Agent does not receive a written objection from the other party to the proposed payment within five (5)
business days after the giving of such notice by Escrow Agent, Escrow Agent is hereby authorized to make the payment set forth
in the Demand. If Escrow Agent does receive such written objection within such period, Escrow Agent shall continue to hold such
amount until otherwise directed by written instructions signed by Lessor

 

    	13

    	 

    

 

and Lessee or a final judgment of a court. Notwithstanding
the foregoing provisions of this clause (a), if Lessee delivers a notice to Escrow Agent stating that Lessee has terminated this
Agreement on or prior to the expiration of the Due Diligence Period, then Escrow Agent shall immediately return the Earnest Money,
or the pro-rata portion of the Earnest Money set forth on Schedule 1 attached hereto if Lessee terminates less than all of the
Properties, to Lessee without the necessity of delivering any notice to, or receiving any notice from Lessor.

 

(b)          The
parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that Escrow
Agent shall not be deemed to be the agent of either of the parties, and that Escrow Agent shall not be liable to either of the
parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall
be liable for its negligent acts and for any liabilities (including reasonable attorneys’ fees, expenses and disbursements)
incurred by Lessor or Lessee resulting from Escrow Agent’s mistake of law respecting the scope or nature of Escrow Agent’s
duties. Lessor and Lessee shall jointly and severally indemnify and hold Escrow Agent harmless from and against all liabilities
(including reasonable attorneys’ fees, expenses and disbursements) incurred in connection with the performance of Escrow
Agent’s duties hereunder, except with respect to actions or omissions taken or made by Escrow Agent in bad faith, in disregard
of this Agreement or involving negligence on the part of Escrow Agent. Escrow Agent has executed this Agreement in the place indicated
on the signature page hereof in order to confirm that Escrow Agent shall hold the Earnest Money in escrow, and shall disburse
the Earnest Money pursuant to the provisions of this Section 8.

 

9.          Default

 

(a)          In
the event that Lessor is ready, willing and able to close in accordance with the terms and provisions hereof, and Lessee defaults
in any of its obligations undertaken in this Agreement, Lessor shall be entitled, as its sole and exclusive remedy to either:
(i) if Lessee is willing to proceed to Closing, waive such default and proceed to Closing in accordance with the terms and provisions
hereof; or (ii) declare this Agreement to be terminated, and Lessor shall be entitled to immediately receive all of the Earnest
Money as liquidated damages as and for Lessor’s sole remedy. Upon such termination, neither Lessee nor Lessor shall have
any further rights, obligations or liabilities hereunder, except as otherwise expressly provided herein. Lessor and Lessee agree
that (a) actual damages due to Lessee’s default hereunder would be difficult and inconvenient to ascertain and that such
amount is not a penalty and is fair and reasonable in light of all relevant circumstances, (b) the amount specified as liquidated
damages is not disproportionate to the damages that would be suffered and the costs that would be incurred by Lessor as a result
of having withdrawn the Property from the market, and (c) Lessee desires to limit its liability under this Agreement to the amount
of the Earnest Money paid in the event Lessee fails to complete Closing, and such amount shall be paid to Lessor as liquidated
damages and as Lessor’s sole remedy hereunder. Lessor hereby waives any right to recover the balance of the Leasehold Transaction
Price, or any part thereof, and the right to pursue any other remedy permitted at law or in equity against Lessee. In no event
under this Section or otherwise shall Lessee be liable to Lessor for any punitive, speculative or consequential damages.

 

(b)          In
the event that Lessee is ready, willing and able to close in accordance with the terms and provisions hereof, and Lessor defaults
in the obligations herein taken by

 

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Lessor, with respect to any or all of the Properties, Lessee may, as its sole and exclusive
remedy, either: (i) waive any unsatisfied conditions and proceed to Closing in accordance with the terms and provisions hereof;
(ii) terminate this Agreement with respect to any or all Properties by delivering written notice thereof to Lessor no later than
Closing, upon which termination the Earnest Money shall be refunded to Lessee, Lessor shall pay to Lessee all of the out-of-pocket
costs and expenses incurred by Lessee as to such Property or Properties in connection with this Agreement, which return and payment
shall operate as liquidated damages and to terminate this Agreement and release Lessor and Lessee from any and all rights, obligations
and liability hereunder, except those which are specifically stated herein to survive any termination hereof; (iii) enforce specific
performance of Lessor’s obligations hereunder; or (iv) by notice to Lessor given on or before the Closing Date, extend the
Closing Date for a period of up to thirty (30) days (the “Lessee Closing Extension Period”), and the
“Closing Date” shall be moved to the last day of the Closing Extension Period. If Lessee so extends the Closing Date,
then Lessor may, but shall not be obligated to, cause said conditions to be satisfied during the Lessee Closing Extension Period.
If Lessor does not cause said conditions to be satisfied during the Lessee Closing Extension Period, then Lessee shall have the
remedies set forth in Section 9(b) (i) through (iii) above except that the term “Closing” shall read “Extended
Closing”.

 

Notwithstanding the
foregoing, in the event of a willful or intentional default of Lessor hereunder, Lessee shall, in addition to the foregoing remedies,
be permitted to pursue any and all rights and remedies available to Lessee at law or in equity; provided, however, in no event
shall Lessor be liable to Lessee for any punitive, speculative or indirect consequential damages.

 

10.         Closing

 

. The Closing shall
consist of the execution and delivery of documents by Lessor and Lessee, with respect to each Property as set forth below, and
delivery by Lessee to Lessor of the Leasehold Transaction Price in accordance with the terms of this Agreement. Lessor shall deliver
to Escrow Agent for the benefit of Lessee at Closing the following executed documents for each Property (except as otherwise noted
below):

 

(a)          Intentionally
Deleted;

 

(b)          An
Assignment and Assumption of Leases, Guaranties and Security Deposits, in the form attached hereto as Exhibit C;

 

(c)          A
Bill of Sale for the Personal Property, if any, in the form attached hereto as Exhibit D;

 

(d)          An
Assignment of Contracts, Permits, Licenses and Warranties in the form of Exhibit E;

 

(e)          The
Ground Leases with respect to the Leasehold Properties;

 

(f)          The
Pinnacle Leases;

 

(g)          A
settlement statement setting forth the Leasehold Transaction Price, all prorations and other adjustments to be made pursuant to
the terms hereof, and the funds required for Closing as contemplated hereunder;

 

    	15

    	 

    

 

(h)          All
transfer tax statements, declarations and filings as may be necessary or appropriate for purposes of recordation of the Memos
of Ground Lease;

 

(i)          Good
standing certificates and corporate resolutions or member or partner consents, as applicable, and such other documents as reasonably
requested by Escrow Agent;

 

(j)          Corporate
resolutions or member or partner consents, as applicable, from Lessor and Pinnacle Tenant, authorizing the execution and delivery
of the Ground Leases and the Pinnacle Leases;

 

(k)          Originals
of the Warranties (as hereinafter defined) re-issued at Lessor’s expense, to Lessee or Tenant, as requested by Lessee;

 

(l)          A
certificate pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, or the regulations issued pursuant thereto,
certifying the non-foreign status of Lessor;

 

(m)          An
owner’s title affidavit as to mechanics’ liens and possession and other matters in customary form reasonably acceptable
to Lessee and Escrow Agent;

 

(n)          Each
Fee Mortgage Subordination or Fee Mortgage Release required pursuant to Section 6(d) herein, executed by the applicable mortgagee
and notarized;

 

(o)          With
respect to each Tenant, a Letter to Tenant in form of Exhibit H attached hereto;

 

(p)          An
updated Rent Roll (defined below), arrears report and schedule of security deposits and letters of credit, certified by Lessor
to be true and correct;

 

(q)          Certificates
of insurance or other evidence reasonably satisfactory to Lessee memorializing and confirming that the Tenants are then maintaining
policies of insurance of the types and in the amounts required by the Leases, which shall name Lessee and its mortgagee as additional
insured parties and/or as loss payees and/or mortgagees, as appropriate, as their respective interests may appear;

 

(r)          A
bring down certificate with respect to Lessor’s representations and warranties provided herein in a form reasonably satisfactory
to Lessor and Lessee;

 

(s)          A
Memorandum of Ground Lease for each of the Leasehold Properties (each, a “Memo of Ground Lease” and
collectively, the “Memos of Ground Lease”) in the form attached to the Ground Leases; and

 

(t)          Such
other instruments as are reasonably required by Lessee or Escrow Agent to close the escrow and consummate the lease of the Property
in accordance with the terms hereof.

 

At Closing, Lessee
shall instruct Escrow Agent to deliver the Earnest Money to Lessor which shall be applied to the Leasehold Transaction Price,
shall deliver the balance of the

 

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Leasehold Transaction Price to Lessor and shall execute and deliver execution counterparts of
the closing documents referenced in clauses (b), (e), (f), (g), (h), (n) and (s) above. Lessee shall have the right to advance
the Closing upon five (5) days prior written notice to Lessor; provided that all conditions precedent to both Lessee’s and
Lessor’s respective obligations to proceed with Closing under this Agreement have been satisfied (or, if there are conditions
to a party’s obligation to proceed with Closing that remain unsatisfied, such conditions have been waived by such party).
The Closing shall be held through the mail by delivery of the closing documents to the Escrow Agent on or prior to the Closing
or such other place or manner as the parties hereto may mutually agree.

 

11.         Representations
by Lessor. For the purpose of inducing Lessee to enter into this Agreement and to consummate the lease of the Property in
accordance herewith, Lessor makes the following representations and warranties to Lessee as of the date hereof and as of the Closing
Date with respect to each Property:

 

(a)          Lessor
is duly organized (or formed), validly existing and in good standing under the laws of its state of organization, and to the extent
required by law, the State in which the Property is located. Lessor has the power and authority to execute and deliver this Agreement
and all closing documents to be executed by Lessor, and to perform all of Lessor’s obligations hereunder and thereunder.
Neither the execution and delivery of this Agreement and all closing documents to be executed by Lessor, nor the performance of
the obligations of Lessor hereunder or thereunder will result in the violation of any law or any provision of the organizational
documents of Lessor or will conflict with any order or decree of any court or governmental instrumentality of any nature by which
Lessor is bound. The execution, delivery and performance of this Agreement does not require the consent or approval of any court,
administrative or governmental authority and does not result in the creation or imposition of any lien or equity of any kind whatsoever
upon, or give to any other person any interest or right (including any right of termination or cancellation) in or with respect
to, any material agreement to which Lessor is a party or the business or operations of Lessor or any of its properties or assets;

 

(b)          Except
for any tax appeals and/or contests initiated by Lessor and/or Tenants, if any, Lessor has not received any written notice of
any current or pending litigation, condemnation proceeding or tax appeals affecting Lessor or the Property and Lessor does not
have any knowledge of any pending litigation, condemnation proceeding or tax appeals against Lessor or the Property; Lessor has
not initiated, nor is Lessor participating in, any action for a change or modification in the current subdivision, site plan,
zoning or other land use permits for the Property and Lessor has no knowledge that the Property may be rezoned;

 

(c)          Lessor
has not entered into any leases, subleases, contracts, licenses or other agreements affecting the Property which will be binding
upon Lessee after the Closing other than the Leases and the agreements referenced on Exhibit J annexed hereto;

 

(d)          Except
for violations which have been cured or remedied on or before the date hereof, Lessor has not received any written notice from
(or delivered any notice to) (i) any governmental authority regarding any violation of any law applicable to the Property and
Lessor does not have knowledge of any such violations and (ii) any third party that the Property or the

 

    	17

    	 

    

 

current use thereof violates
any private covenant, restriction, easement or encumbrance and Lessor does not have any knowledge of any such violation;

 

(e)          Lessor
has fee simple title to the Property free and clear of all liens and encumbrances except for Permitted Exceptions and Lessor is
the sole owner of the entire lessor’s interest in each Lease;

 

(f)          With
respect to each Lease: (i) the Lease and any Guaranty forwarded to Lessee under Section 6(b) is a true, correct and complete copy
of the Lease and Guaranty; (ii) the Lease and Guaranty, if any, are in full force and effect and there is no default thereunder;
(iii) no brokerage or leasing commissions or other compensation is or will be due or payable to any person, firm, corporation
or other entity with respect to or on account of the current term of the Lease or any extension or renewal thereof; (iv) Lessor
has no outstanding obligation to provide Tenant with an allowance to construct, or to construct at its own expense, any tenant
improvements, except as set forth in Schedule 11(f)(iv) attached hereto; (v) intentionally deleted; (vi) Tenant is not entitled
to rental concessions or abatements for any period subsequent to the scheduled date of Closing, except as set forth in Schedule
11(f)(vi) attached hereto; (vii) Tenant has not prepaid any rents as of the date hereof nor has Tenant delivered a security deposit,
letter of credit or other security in connection with the Lease, except as set forth on Schedule 11(f)(vii) attached hereto; (viii)
Tenant has not made any request for any assignment, transfer, or subletting in connection with all or a portion of the premises
demised to Tenant which is presently pending or under consideration by Lessor; (ix) all specified work required to be performed
by the landlord under the Lease up to the date of Closing has been completed or will be completed, at Lessor’s expense,
prior to the Closing; (x) Lessor has not received and has no knowledge of any pending notices from Tenant electing to vacate the
premises leased to Tenant or exercising any right of Tenant to terminate the Lease; and (xi) Lessor has heretofore billed Tenant
for all fixed rent and additional rent due under the Lease as of the date hereof; 

 

(g)          Attached
hereto as Exhibit A-3 and made a part hereof is a true, correct and complete copy of the rent roll for the Property (the “Rent
Roll”);

 

(h)          There
are no occupancy rights, leases or tenancies affecting the Property other than the Leases. Neither this Agreement nor the consummation
of the transactions contemplated hereby is subject to any first right of refusal or other purchase right in favor of any other
person or entity; and apart from this Agreement, Lessor has not entered into any written agreements for the lease, purchase or
sale of the Property, or any interest therein which has not been terminated;

 

(i)          The
transactions contemplated hereby either (i) will not constitute a conveyance of all or substantially all the assets of Lessor,
or (ii) if such transaction does constitute a conveyance of all or substantially all the assets of any Lessor, Lessor shall provide
to Lessee at Closing an excise tax lien waiver or such other reasonably obtainable instruments evidencing compliance with laws
or payment of taxes to the extent required by the law of the relevant state, or an indemnification from a party reasonably acceptable
to Lessee for any resulting liability with respect to the period prior to the Closing;

 

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(j)          To
Lessor’s knowledge, except as set forth in the environmental reports previously delivered by Lessor to Lessee, no hazardous
substances have been generated, stored, released, or disposed of on or about the Property in violation of any law, rule or regulation
applicable to the Property which regulates or controls matters relating to the environment or public health or safety (collectively,
“Environmental Laws”) and no adverse environmental condition exists at the Property. Lessor has not
received any written notice from (nor delivered any notice to) any federal, state, county, municipal or other governmental department,
agency or authority (1) concerning any petroleum product or other hazardous substance discharge or seepage at, on, around or under
the Property, or migrating from the Property, in violation of any Environmental Laws or; (2) of any pending actions, suits, claims
and/or proceedings claiming that Lessor, any Tenant or the Property is in violation of any Environmental Laws. For purposes of
this Subsection, “hazardous substances” shall mean any substance or material which is defined or deemed to be hazardous
or toxic pursuant to any Environmental Laws. To Lessor’s knowledge, there are no underground storage tanks located on the
Property;

 

(k)          Exhibit
I attached hereto is a true, correct and complete listing of all warranties in effect for the Property (the “Warranties”);

 

(l)          Lessor
is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code; and

 

(m)          There
presently exists no unrestored casualty or condemnation affecting the Property.

 

The representations
and warranties of Lessor shall survive Closing for a period of nine (9) months.

 

12.         Representations
by Lessee.   Lessee represents and warrants to, and covenants with, Lessor as follows:

 

(a)          Lessee
is a limited liability company duly formed, validly existing and in good standing under the laws of Delaware, is authorized to
consummate the transaction set forth herein and fulfill all of its obligations hereunder and under all closing documents to be
executed by Lessee, and has all necessary power to execute and deliver this Agreement and all closing documents to be executed
by Lessee, and to perform all of Lessee’s obligations hereunder and thereunder. At Closing, each Approved Assignee (defined
below) will be authorized to conduct business in the Commonwealth of Pennsylvania. This Agreement and all closing documents to
be executed by Lessee have been duly authorized by all requisite corporate or other required action on the part of Lessee and
are the valid and legally binding obligation of Lessee, enforceable in accordance with their respective terms. Neither the execution
and delivery of this Agreement and all closing documents to be executed by Lessee, nor the performance of the obligations of Lessee
hereunder or thereunder will result in the violation of any law or any provision of the organizational documents of Lessee or
will conflict with any order or decree of any court or governmental instrumentality of any nature by which Lessee is bound.

 

The representations
and warranties of Lessee shall survive Closing for a period of nine (9) months.

 

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13.         Conditions
Precedent to Lessee’s Obligations. Lessee’s obligation to pay the Leasehold Transaction Price, and to accept title
to the Property, shall be subject to compliance by Lessor with the following conditions precedent with respect to each Property
on and as of the Closing Date:

 

(a)          Lessor
shall deliver to Lessee on or before the Closing the items set forth in Section 10 above;

 

(b)          Lessee
shall receive from Escrow Agent or any other title insurer approved by Lessee in its judgment and discretion, a current ALTA leasehold
form of title insurance policy, as applicable, or irrevocable and unconditional binder to issue the same, with extended coverage
for the Real Property in the amount of the Leasehold Transaction Price, dated, or updated to, the date of the Closing, insuring,
or committing to insure, at its ordinary premium rates Lessee’s good and marketable title to the leasehold estate in the
Real Property and the Improvements otherwise in such form and with such endorsements as provided in the title commitment approved
by Lessee pursuant to Section 6 hereof and subject only to the Permitted Exceptions (the “Title Policy”);

 

(c)          Each
Tenant shall be in possession of the premises demised under its respective Lease, open for business to the public and paying full
and unabated rent under such Lease and no Tenant shall have assigned its Lease;

 

(d)          The
representations and warranties of Lessor contained in this Agreement shall have been true when made and shall be true in all material
respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Lessor
shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement
to be performed or complied with by Lessor prior to or at the Closing;

 

(e)          Lessor
shall have delivered to Lessee a written waiver by each applicable party of any right of first refusal, right of first offer or
other purchase option that such party has to lease or purchase the Property, or any part thereof, from Lessor;

 

(f)          Lessor
shall have delivered to Lessee a copy of each Estoppel Certificate required to be delivered by Lessor under the terms of Section
6(c) hereof; and 

 

(g)          Lessor
shall have made all contributions, payments and/or reimbursements and completed any and all work required by any governmental
authority in connection with the construction and development of the Property, including, without limitation, as required by any
variance or site plan approval.

 

In the event that
any of the foregoing conditions precedent has not been satisfied as of Closing, Lessee shall have the right terminate this Agreement
by delivering written notice thereof to Lessor no later than that date which is fifteen (15) days after the Closing Date, upon
which termination the Earnest Money shall be refunded to Lessee, and with respect to a failure under Subsections (a), (d) or (e)
above, Lessor shall pay to Lessee upon receipt of reasonable documentary evidence of all of the out-of-pocket costs and expenses
actually incurred by Lessee in connection with this Agreement, which return and payment shall operate to terminate this

 

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Agreement
and release Lessor and Lessee from any and all liability hereunder, except those which are specifically stated herein to survive
any termination hereof.

 

14.         Conditions
Precedent to Lessor’s Obligations. Lessor’s obligation to lease the Property shall be subject to the following
conditions precedent with respect to each Property on and as of the Closing Date:

 

(a)          Escrow
Agent is in receipt of a release from Manufacturers and Traders Trust Company of its lien against certain of the Properties (as
created by that certain document entitled “Master Open-End Mortgage and Security Agreement” dated June 23, 2009 by
and between Lessor and Manufacturers and Traders Trust Company and recorded in the Dauphin County Recorder of Deeds Office on
July 2, 2009 at Instrument Number 20090021845);

 

(b)          Lessee
shall deliver to Escrow Agent on the Closing Date the remainder of the Leasehold Transaction Price, subject to adjustment of such
amount pursuant to Section 4 hereof; and

 

(c)          The
representations and warranties of Lessee contained in this Agreement shall have been true when made and shall be true in all material
respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Lessee
shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement
to be performed or complied with by Lessee prior to or at the Closing.

 

To the extent that,
notwithstanding the good faith efforts of Lessor to secure the release described in Section 14(a) above, the same has not been
obtained by the Closing Date, then Lessor by written notice to Lessee given on or before the Closing Date, may extend the Closing
Date to a date (the “Extended Closing Date”) that is no later than October 31, 2014 (the period between
the Closing Date and the Extended Closing Date, the “Lessor Closing Extension Period”), and the “Closing
Date” shall be moved to the Extended Closing Date. If Lessor so extends the Closing Date, then Lessee may, but shall not
be obligated to, cause said conditions to be satisfied during the Lessor Closing Extension Period. If Lessor does not cause said
conditions to be satisfied by the Extended Closing Date, then Lessee may either (i) waive any unsatisfied conditions and proceed
to Closing in accordance with the terms and provisions hereof; or (ii) terminate this Agreement with respect to any or all Properties
by delivering written notice thereof to Lessor no later than five (5) business days following the Extended Closing Date, upon
which termination the Earnest Money shall be refunded to Lessee, Lessor shall pay to Lessee all of the out-of-pocket costs and
expenses incurred by Lessee as to such Property or Properties in connection with this Agreement, which return and payment shall
operate as liquidated damages and to terminate this Agreement and release Lessor and Lessee from any and all rights, obligations
and liability hereunder, except those which are specifically stated herein to survive any termination hereof.

 

15.         Notices.
Unless otherwise provided herein, all notices and other communications which may be or are required to be given or made by
any party to the other in connection herewith shall be in writing and shall be deemed to have been properly given and received
on the date: (i) delivered by facsimile transmission or by electronic mail (e.g. email), (ii) delivered in

 

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person, (iii) deposited
in the United States mail, registered or certified, return receipt requested, or (iv) deposited with a nationally recognized overnight
courier, to the addresses set out in Section 1, or at such other addresses as specified by written notice delivered in accordance
herewith. Notwithstanding the foregoing, Lessor and Lessee agree that notice may be given on behalf of each party by the counsel
for each party and notice by such counsel in accordance with this Section 15 shall constitute notice under this Agreement.

 

16.         Lessor
Covenants.   Lessor agrees that it: (a) shall continue to operate and manage each Property in the same manner in which Lessor
has previously operated and managed such Property; (b) shall, subject to Section 7 hereof and subject to reasonable wear and tear,
maintain each Property in the same (or better) condition as exists on the date hereof; and (c) shall not, without Lessee’s
prior written consent, which, after the expiration of the Due Diligence Period may be withheld in Lessee’s sole discretion:
(i) amend the Leases or the Guaranties in any manner, nor enter into any new lease, other than the Ground Leases and the Pinnacle
Leases, license agreement or other occupancy agreement with respect to any Property; (ii) consent to an assignment of any Lease
or a sublease of the premises demised thereunder or a termination or surrender thereof; (iii) terminate any Lease or release any
guarantor of or security for any Lease unless required by the express terms of such Lease; and/or (iv) cause, permit or consent
to an alteration of the premises demised under the Leases (unless such consent is non-discretionary). Lessor shall promptly inform
Lessee in writing of any material event adversely affecting the ownership, use, occupancy or maintenance of any Property, whether
insured or not.

 

17.         314
Audit. Upon Lessee’s request, for a period of one (1) year after Closing, Lessor shall make the financial statements,
including balance sheets, income statements, stockholders’ equity statements and cash flow statements and related notes
prepared in accordance with United States generally accepted accounting standards, and any and all books, records, correspondence,
financial data, leases, delinquency reports and all other documents and matters (other than confidential and privileged information)
maintained by Lessor or their agents and relating to receipts, expenditures, contributions and distributions reasonably necessary
to complete an audit pertaining to each Property for the three (3) most recent full calendar years and the interim period of the
current calendar year (collectively, the “Records”) available to Lessee and/or its auditors for inspection,
copying and audit by Lessee’s designated accountants, and at Lessee’s expense. Lessor shall provide Lessee and/or
its auditors, but without expense to Lessor, with copies of, or access to, such factual and financial information as may be reasonably
requested by Lessee or its designated accountants, and in the possession or control of Lessor, to enable Lessee to file any filings
required by the Securities and Exchange Commission (the “SEC”) in connection with the lease of each
Property. Lessor understands and acknowledges that Lessee is required to file audited financial statements related to each Property
with the SEC within seventy-one (71) days of the Closing Date and agrees to provide any Records and
requested reasonable representations and/or certifications to the Lessee’s auditors, on a timely basis to facilitate
Lessee’s timely submission of such audited financial statements.

 

18.         Performance
on Business Days. A "business day" is a day which is not a Saturday, Sunday or legal holiday recognized by the Federal
Government. Furthermore, if any date upon which or by which action is required under this Agreement is not a business day, then
the date for such action shall be extended to the first day that is after such date and is a business day. When calculating the
period of time before which, within which or following which any act

 

    	22

    	 

    

 

is to be done or step taken pursuant to this Agreement, the date that is the reference
date in calculating such period shall be excluded. If the last day of such period is a non-business day, the period in question
shall end on the next succeeding business day.

 

19.         Entire
Agreement. This Agreement constitutes the sole and entire agreement among the parties hereto and no modification of
this Agreement shall be binding unless in writing and signed by all parties hereto. No prior agreement or understanding pertaining
to the subject matter hereof (including, without limitation, any letter of intent executed prior to this Agreement) shall be valid
or of any force or effect from and after the date hereof.

 

20.         Severability.
 If any provision of this Agreement, or the application thereof to any person or circumstance, shall be invalid or unenforceable,
at any time or to any extent, then the remainder of this Agreement, or the application of such provision to persons or circumstances
other than those as to which it is invalid or unenforceable, shall not be affected thereby. Each provision of this Agreement shall
be valid and enforced to the fullest extent permitted by law.

 

21.         No
Representations or Warranties. Lessee hereby acknowledges, understands and agrees that it has an opportunity to inspect the
Property as set forth in Section 6 herein, and except as set forth in this Agreement, the Property shall be conveyed by lease
at Closing to Lessee in “as-is” condition with no representation or warranties, express or implied, whatsoever.

 

22.         Applicable
Law. This Agreement shall be construed under the laws of the State or Commonwealth in which the Property is located, without
giving effect to any state's conflict of laws principles.

 

23.         Intentionally
Deleted.

 

24.         Broker’s
Commissions. Lessee and Lessor each hereby represent that, except for the Broker listed herein, there are no other brokers
involved or that have a right to proceeds in this transaction. Lessor shall be responsible for payment of commissions to the Broker
pursuant to a separate written agreement executed by Lessor. Lessor and Lessee each hereby agree to indemnify and hold the other
harmless from all loss, cost, damage or expense (including reasonable attorneys' fees at both trial and appellate levels) incurred
by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission,
finder's fee or similar compensation made by any broker, finder or any party who claims to have dealt with such party (except
that Lessee shall have no obligations hereunder with respect to any claim by Broker). The representations, warranties and indemnity
obligations contained in this section shall survive the Closing or the earlier termination of this Agreement.

 

25.         Assignment.
Lessee may assign its rights under this Agreement, provided, however, that no such assignment shall relieve Lessee of any
of its obligations hereunder until Closing is complete. Lessee is entering into this Agreement for and on behalf of the special
purpose entities named on Schedule 25 attached hereto and made a part hereof (individually and collectively, “Approved
Assignee”) and intends to assign each respective Approved Assignee its rights hereunder prior to Closing.

 

    	23

    	 

    

 

26.         Attorneys’
Fees. In any action between Lessee and Lessor as a result of failure to perform or a default under this Agreement, the prevailing
party shall be entitled to recover from the other party, and the other party shall pay to the prevailing party, the prevailing
party’s reasonable attorneys’ fees and disbursements and court costs incurred in such action.

 

27.         Time
of the Essence. Time is of the essence with respect to each of Lessee’s and Lessor’s obligations hereunder.

 

28.         Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and
shall become a binding agreement when one or more counterparts have been signed by each of the parties and delivered to the other
party. Signatures on this Agreement which are transmitted electronically shall be valid for all purposes, however any party shall
deliver an original signature on this Agreement to the other party upon request.

 

29.         Anti-Terrorism.
Neither Lessee or Lessor, nor any of their affiliates, are in violation of any Anti-Terrorism Law (as hereinafter defined)
or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts
to violate, any of the prohibitions set forth in any Anti-Terrorism Law. “Anti-Terrorism Laws” shall mean any laws
relating to terrorism or money laundering, including: Executive Order No. 13224; the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or may hereafter
be, renewed, extended, amended or replaced; the applicable laws comprising or implementing the Bank Secrecy Act; and the applicable
laws administered by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing may
from time to time be amended, renewed, extended, or replaced).

 

[SIGNATURES APPEAR ON THE FOLLOWING PAGES]

 

    	24

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the Effective Date.

 

	LESSEE:	 	LESSOR:
	 	 	 
	AMERICAN REALTY CAPITAL VII, LLC,	 	PINNACLE HEALTH HOSPITALS,
	a Delaware limited liability company	 	a Pennsylvania non-profit corporation
	 	 	 
	By:	/s/ Edward M. Weil, Jr.	 	By:	/s/ Michael Young
	 	Name: Edward M. Weil, Jr.	 	 	Name: Michael Young
	 	Title:   President	 	 	Title:   President/CEO
	 	 	 
	Date: June 13, 2014	 	Date: June 11, 2014

 

THE UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES TO BE BOUND
BY THE TERMS OF THIS AGREEMENT RELATING TO ESCROW AGENT AND THE EARNEST MONEY.

 

ESCROW AGENT:

 

STEWART TITLE GUARANTY COMPANY

 

	By:	/s/ Annette M. Comer	 
	 	 	 
	Name:  	Annette M. Comer	 
	 	 	 
	Title:	Vice President	 
	 	 	 
	Date:	June 16, 2014	 

 

    	 

    	 

    

 

EXHIBITS AND SCHEDULES

 

	Exhibits	 	 
	 	 	 
	Exhibit A-1-1	-	Bloom Real Property
	 	 	 
	Exhibit A-1-2	-	Brady Real Property
	 	 	 
	Exhibit A-1-3	-	Community Health Real Property
	 	 	 
	Exhibit A-1-4	-	FOC Real Property
	 	 	 
	Exhibit A-1-5	-	Landis Real Property
	 	 	 
	Exhibit A-1-6	-	Medical Sciences Real Property
	 	 	 
	Exhibit A-2	-	List of Leases
	 	 	 
	Exhibit A-3	-	Rent Roll
	 	 	 
	Exhibit B-1	-	Intentionally Deleted
	 	 	 
	Exhibit C	-	Form of Assignment and Assumption of Leases, Guaranties and Security Deposits
	 	 	 
	Exhibit D	-	Form of Bill of Sale
	 	 	 
	Exhibit E	-	Form of Assignment of Contracts, Permits, Licenses and Warranties
	 	 	 
	Exhibit F	-	Form of Estoppel Certificate
	 	 	 
	Exhibit G	-	Intentionally Omitted
	 	 	 
	Exhibit H	-	Form of Tenant Notice Letter
	 	 	 
	Exhibit I	-	Warranties
	 	 	 
	Exhibit J	-	Service Contracts
	 	 	 
	Schedules	 	 
	 	 	 
	Schedule 1	-	Leasehold Transaction Price Allocations
	 	 	 
	Schedule 6(e)	-	Ground Lease Terms
	 	 	 
	Schedule 6(f)	-	Pinnacle Lease Terms
	 	 	 
	Schedule 11(f)(iv)	-	Tenant Improvement Allowances

 

Exhibits and Schedules

 

    	 

    	 

    

 

	Schedule 11(f)(vi)	-	Rent Concessions
	 	 	 
	Schedule 11(f)(vii)	-	Prepaid Rents, Security Deposits and Letters of Credit
	 	 	 
	Schedule 25	-	Approved Assignees

 

Exhibits and Schedules

 

    	 

    	 

    

 

EXHIBIT A-1-1

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

Bloom Real Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-1

    	 

    

 

EXHIBIT A-1-2

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

Brady Real Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-2

    	 

    

 

EXHIBIT A-1-3

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

Community Health Real
Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-3

    	 

    

 

EXHIBIT A-1-4

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

FOC Real Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-4

    	 

    

 

EXHIBIT A-1-5

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

Landis Real Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-5

    	 

    

 

EXHIBIT A-1-6

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

Medical Sciences Real
Property

 

[LESSOR TO PROVIDE
LEGAL DESCRIPTION TO LESSEE BY JUNE 20, 2014]

 

    	A-1-6

    	 

    

 

EXHIBIT A-2

 

LIST OF LEASES

 

Bloom Real Property Leases

		1.	Lease Agreement, dated January
                                         1, 2000, by and between Pinnacle Health Hospitals and Susquehanna Valley Surgery Center,
                                         as amended by (i) a lease amendment dated January 9, 2004, by and between Pinnacle Health
                                         Hospitals and Susquehanna Valley Surgery Center, and (ii) a renewal agreement letter
                                         dated January 8, 2010 by and between PinnacleHealth and Susquehanna Valley Surgery Center.

 

		2.	Lease Agreement, dated February
                                         17, 2005, by and between Pinnacle Health Hospitals and Susquehanna Valley Surgery Center,
                                         as amended by (i) a lease amendment dated February 25, 2010.

 

		3.	Office Lease Agreement, dated
                                         February 27, 2004 by and between Pinnacle Health Hospitals and Knight, Boline & D’Amico
                                         Urology Associates.

 

		4.	Office Lease Agreement, dated
                                         October 25, 2011, by and between Pinnacle Health Hospitals and Medical Arts Allergy,
                                         P.C.

 

		5.	Office Lease Agreement, dates
                                         April 9, 2003, by and between Pinnacle Health Hospitals and Michael F. Lupinacci, d/b/a
                                         Physicians of Rehabilitation, Industrial and Spine Medicine, P.C., as amended by (i)
                                         Lease Addendum dated February 1, 2006, by and between Pinnacle Health Hospitals and Michael
                                         F. Lupinacci, d/b/a Physicians of Rehabilitation, Industrial and Spine Medicine, P.C.,
                                         (ii) Second Lease Addendum dated September 21, 2007, , by and between Pinnacle Health
                                         Hospitals and Michael F. Lupinacci, d/b/a Physicians of Rehabilitation, Industrial and
                                         Spine Medicine, P.C., and (ii) letter dated July 1, 2013 by and between Zetter HealthCare
                                         Management Consultants, Pinnacle Health Hospitals and PRISM.

 

		6.	Office Lease Agreement, dated
                                         January 4, 2014, by and between Pinnacle Health Hospitals and Urology of Central PA.

 

FOC Real Property Leases

FOC I Leases

		1.	Lease Agreement, dated May 19,
                                         2004, by and between Pinnacle Health Hospitals and Cumberland Ears, Nose and Throat and
                                         Facial Plastic Surgery, P.C., as amended by (i) Lease Addendum dated September 15, 2009,
                                         by and between Pinnacle Health Hospitals and Heritage Medical Group, LLP, and (ii) Lease
                                         Renewal Letter dated September 21, 2010, by and between Pinnacle Health and Heritage
                                         Ears, Nose and Throat and Facial Surgery.

 

		2.	Lease Agreement, dated September
                                         2, 2004, by and between Pinnacle Health Hospitals and GDD Pharmacy Services, Inc. as
                                         amended by (i) Lease Renewal Letter dated January 26, 2010, by and between Pinnacle Health
                                         and Good Day Pharmacy.

 

    	A-2-1

    	 

    

 

		3.	Lease Agreement, dated March 23,
                                         2007 by and between Pinnacle Health Hospitals and Jones, Daly & Coldren Associates,
                                         as amended by (i) Lease Addendum and Extension, dated June 20, 2008, by and between Pinnacle
                                         Health Hospitals and Jones, Daly & Coldren Associates.

 

		4.	Basic Lease Information dated
                                         January 1, 2004, by and between Pinnacle Health Hospitals and Armesto Eye Associates,
                                         as amended by (i) Lease Addendum dated February 22, 2005, by and between Pinnacle Health
                                         Hospitals and Armesto Eye Associates, (ii) a Second Lease Addendum dated October 2, 2009,
                                         by and between Pinnacle Health Hospitals and Armesto Eye Associates (iii) a Third Lease
                                         Addendum dated January 13, 2011 by and between Pinnacle Health Hospitals and Armesto
                                         Eye Associates.

 

		5.	Lease dated December 16, 1999,
                                         by and between Pinnacle Health Hospitals and Leo D. Farrell M.D. and Deborah Darrell,
                                         M.D., as amended by (i) a First Amendment, dated September 1, 2000, by and between Pinnacle
                                         Health Hospitals and Leo D. Farrell M.D. and Deborah Darrell, M.D., (ii) a Corrective
                                         Addendum dated May 15, 2001, by and between Pinnacle Health Hospitals and Leo D. Farrell
                                         M.D. and Deborah Darrell, M.D., (superseding an Addendum dated April 25, 2001), (iii)
                                         a Third Addendum, dated October 3, 2001, by and between Pinnacle Health Hospitals and
                                         Leo D. Farrell M.D. and Deborah Darrell, M.D., (iv) a Fourth Addendum dated February
                                         25, 2002, by and between Pinnacle Health Hospitals and Leo D. Farrell M.D. and Deborah
                                         Darrell, M.D., (v) a Fifth Lease Addendum dated August 4, 2005, by and between Pinnacle
                                         Health Hospitals and Leo D. Farrell M.D. and Deborah Darrell, M.D., (vi) a Sixth Addendum
                                         dated April 20, 2010, by and between Pinnacle Health Hospitals and Leo D. Farrell M.D.
                                         and Deborah Darrell, M.D.

 

		6.	Lease Agreement, dated January
                                         26, 2009, by and between Pinnacle Health Hospitals and Peter Sakol, M.D., as amended
                                         by (i) a Lease Renewal Letter dated January 23, 2012 between Pinnacle Health Hospitals
                                         and Peter Sakol M.D.

 

		7.	Lease Agreement, dated April 22,
                                         2010 by and between Pinnacle Health Hospitals and Scott Mueller, M.D.

 

		8.	Lease Agreement, dated January
                                         15, 2013 by and between Pinnacle Health Hospitals and Reproductive Medicine Associates
                                         of Philadelphia, P.C.

 

		9.	Lease Agreement, dated February
                                         1, 2013 by and between Pinnacle Health Hospitals and Arlington Orthopedics.

 

		10.	Office Lease Agreement, dated
                                         January 23, 2009 by and between Pinnacle Health Hospitals and Women First, Obstetrics
                                         and Gynecology, as amended by (i) a Lease Addendum dated October 1, 2011, by and between
                                         Pinnacle Health Hospitals and Women First, Obstetrics and Gynecology.

 

		11.	Office Lease Agreement, dated
                                         January 23, 2009 by and between Pinnacle Health Hospitals and Women First, Obstetrics
                                         and Gynecology, as amended by a Lease 

 

    	A-2-2

    	 

    

 

		 	Addendum dated October 1, 2011, by and between Pinnacle
Health Hospitals and Women First, Obstetrics and Gynecology.

 

		12.	Office Lease dated August 15,
                                         2002, by and between Pinnacle Health Hospitals and deRamon Plastic Surgery Institute,
                                         P.C., as amended by (i) an Addendum dated October 29, 2004, by and between Pinnacle Health
                                         Hospitals and deRamon Plastic Surgery Institute, P.C., and (ii) a Second Lease Addendum
                                         dated December 12, 2006, by and between Pinnacle Health Hospitals and deRamon Plastic
                                         Surgery Institute, P.C.

 

		13.	Lease Agreement, dated September
                                         16, 2009 by and between Pinnacle Health Hospitals and Calagno and Rossi Vein Treatment
                                         Center, LLC.

 

		14.	Lease Agreement, dated August
                                         1, 2000, by and between Pinnacle Health Hospitals and Medical Arts Allergy P.C, as amended
                                         by (i) Lease Addendum dated November 1, 2006, by and between Pinnacle Health Hospitals
                                         and Medical Arts Allergy P.C., (ii) Second Lease Addendum dated January 1, 2919 by and
                                         between Pinnacle Health Hospitals and Medical Arts Allergy P.C.

 

		15.	Ground and Rooftop Lease Agreement
                                         dated February 1, 2002 by and between Pinnacle Health Hospitals and Cellco Partnership
                                         d/b/a Verizon Wireless.

 

FOC II Leases

		1.	Lease Agreement, dated July 12,
                                         2011, by and between Pinnacle Health Hospitals and Sandeep Kakaria, M.D.

 

		2.	Lease Agreement, dated May 11,
                                         2011, by and between Pinnacle Health Hospitals and Ability Prosthetics and Orthotics,
                                         Inc.

 

		3.	Lease Agreement, dated August
                                         1, 2010, by and between Pinnacle Health Hospitals and Burick Center for Health &Wellness.

 

    	A-2-3

    	 

    

 

EXHIBIT A-3

 

RENT ROLL

 

(attached)

 

    	A-3-1

    	 

    

 

 

    	A-3-2

    	 

    

 

 

    	A-3-3

    	 

    

 

 

    	A-3-4

    	 

    

 

 

    	A-3-5

    	 

    

 

 

    	A-3-6

    	 

    

 

 

    	A-3-7

    	 

    

 

 

    	A-3-8

    	 

    

 

 

    	A-3-9

    	 

    

 

EXHIBIT B-1

 

INTENTIONALLY DELETED

 

    	B-1

    	 

    

 

EXHIBIT C

 

FORM OF

ASSIGNMENT AND ASSUMPTION OF LEASES, GUARANTIES AND SECURITY DEPOSITS

 

______________________________
("Assignor"), in consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid and other good and valuable
consideration, the receipt of which is hereby acknowledged, hereby assigns, transfers, sets over and conveys to ______________________________
("Assignee"), all of Assignor's right, title and interest in and to those leases described in Exhibit A attached
hereto and made a part hereof (as amended from time to time, the “Leases”), including any and all security deposits
under the Leases, together with all of Assignor’s right, title and interest in and to those lease guaranties described in
Exhibit B attached hereto and made a part hereof (as amended from time to time).

 

Subject to the limitations
set forth below, Assignor does hereby agree to defend, indemnify and hold harmless Assignee from any liability, damages (excluding
speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable attorneys' fees incurred
by Assignee by reason of the failure of Assignor to have fulfilled, performed and discharged all of the various commitments, obligations
and liabilities of the lessor, or landlord under and by virtue of the Leases arising or accruing prior to the date of this Assignment.
Subject to the limitations set forth below, Assignee does hereby agree to defend, indemnify and hold harmless Assignor from any
liability, damages (excluding speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable
attorneys' fees incurred by Assignor by reason of the failure of Assignee to have fulfilled, performed and discharged all of the
various commitments, obligations and liabilities of the Landlord under and by virtue of the Leases arising or accruing on and
after the date of this Assignment.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	C-1

    	 

    

 

IN WITNESS WHEREOF,
Assignor and Assignee have executed this Assignment this ______ day of ______________, 2014, which Assignment is effective this
date. This Assignment may be executed in counterparts, which when taken together shall be deemed one agreement.

 

	 	ASSIGNOR:
	 	 
	 	 
	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 
	 	 
	 	ASSIGNEE:
	 	 
	 	 
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title:	 

 

    	C-2

    	 

    

 

EXHIBIT A

 

Leases

 

    	C-3

    	 

    

 

EXHIBIT B

 

Guaranties

 

    	C-4

    	 

    

 

EXHIBIT D

 

FORM OF BILL OF SALE

 

For valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, ______________________________, a ___________________________, having
an address at ____________________________ (“Lessor”), hereby bargains, sells, conveys and transfers to ____________________________
(“Lessee”), a _______________________________, all of Lessor’s right, title and interest in and to those certain
items of personal and intangible property (including any warranty made by third parties in connection with the same and the right
to sue on any claim for relief under such warranties) (the “Personal Property”) located at or held in connection with
that certain real property located in the State of __________________________, as more particularly described on Schedule A attached
hereto and made a part hereof.

 

Lessor has not made
and does not make any express or implied warranty or representation of any kind whatsoever with respect to the Personal Property,
including, without limitation, with respect to title, merchantability of the Personal Property or its fitness for any particular
purpose, the design or condition of the Personal Property; the quality or capacity of the Personal Property; workmanship or compliance
of the Personal Property with the requirements of any law, rule, specification or contract pertaining thereto; patent infringement
or latent defects. Lessee accepts the Personal Property on an “as is, where is” basis.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	D-1

    	 

    

 

IN WITNESS WHEREOF,
Lessor has caused this instrument to be executed and delivered as of this ___ day of _______, 2014.

 

	 	LESSOR:	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name: 	 	 
	 	 	 	 
	 	Title:	 	 

 

    	D-2

    	 

    

 

SCHEDULE A

 

TO BILL OF SALE

 

[Add legal description of Real Property]

 

    	D-3

    	 

    

 

EXHIBIT E

 

FORM OF ASSIGNMENT OF CONTRACTS,

PERMITS, LICENSES AND WARRANTIES

 

THIS ASSIGNMENT, made
as of the ___ day of ________, 2014, by _________________, a __________________________ (“Assignor”), to _____________________________,
a __________________________________________(“Assignee”).

 

WITNESSETH:

 

WHEREAS, by Agreement
for Lease of Real Property (the “Agreement for Lease”) having an effective date of ________, 2014, between Assignor
and American Realty Capital VII, LLC, Assignee’s predecessor-in-interest under the Agreement for Lease, Assignee has agreed
to lease from Assignor as of the date hereof, and Assignor has agreed to lease to Assignee, that certain property located at ________________________
(the “Property”); and

 

WHEREAS, Assignor
desires to assign to Assignee as of the date hereof all of Assignor’s right, title and interest in those contracts set forth
on Exhibit A attached hereto and made a part hereof, and the permits, trademarks, licenses and warranties held by Assignor in
connection with the Property (collectively, the “Contracts”).

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the Assignor hereby assigns, sets over and transfers
unto Assignee to have and to hold from and after the date hereof all of the right, title and interest of Assignor in, to and under
the Contracts. Assignor agrees without additional consideration to execute and deliver to Assignee any and all additional forms
of assignment and other instruments and documents that may be reasonably necessary or desirable to transfer or evidence the transfer
to Assignee of any of Assignor's right, title and interest to any of the Contracts.

 

This Assignment shall
be governed by the laws of the State of _____________, applicable to agreements made and to be performed entirely within said
State.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	E-1

    	 

    

 

IN WITNESS WHEREOF,
Assignor has duly executed this Assignment as of the date first above written.

 

	 	ASSIGNOR:
	 	 
	 	 
	 	a	 
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

    	E-2

    	 

    

 

Exhibit A

 

Assumed Contracts

 

    	E-3

    	 

    

 

EXHIBIT F

 

FORM OF ESTOPPEL CERTIFICATE

 

The undersigned hereby
certifies to American Realty Capital VII, LLC (“ARC VII”), [_____________________] (“Approved
Assignee”; ARC VII and Approved Assignee are hereinafter referred to, individually and collectively, as “Lessee”),
KeyBank National Association (“Lender”) and their respective successors and assigns as follows:

 

1.          The
undersigned is the tenant under that certain [insert title of lease document] [(the “Lease”)], dated as of
_________ __, ____, by and between _________________________ (“Landlord”) and _________________________ (“Tenant”)
[, as amended by that certain [insert title of lease amendment document], dated as of _________ __, ____, by and between _________________________
and _________________________ (collectively, the “Lease”)], pursuant to which Tenant leases certain premises
known as [Suite ____], consisting of _______ rentable square feet, at that real property located at _________________________________________
(the “Premises”).

 

2.          Except
as set forth above, the Lease has not been modified, changed, altered, supplemented or amended in any respect, nor have any provisions
thereof been waived.

 

3.          The
Lease is valid and in full force and effect on the date hereof. The Lease represents the entire agreement between Landlord and
Tenant with respect to the Premises and the land on which the Premises are situated.

 

4.          Tenant
is not entitled to, and has made no agreement with Landlord or its agents or employees concerning, free rent, partial rent, rebate
of rent payments, credit or offset or reduction in rent, or any other type of rental concession including, without limitation,
lease support payments, lease buy-outs, or assumption of any leasing or occupancy agreements of Tenant.

 

5.          The
initial term of the Lease began on __________ __, _____ and expires on ________ __, 20__. The Rent Commencement Date was __________
__, ____. Tenant has accepted possession of the Premises and is open for business. Tenant has not sublet all or a portion of the
Premises to any sublessee and has not assigned, transferred or encumbered any of its rights or interests under the Lease.

 

6.          Tenant
has no outstanding options or rights to renew or extend the term of the Lease, except as follows: ________________ (if none, please
state “none”). Tenant has no outstanding expansion options, other options, rights of first refusal or rights of first
offer to purchase the Premises or any part thereof and/or the land on which the Premises are situated, or rights of first offer
to lease with respect to all or any part of the Premises.

 

7.          The
[Base Annual Rent] payable under the Lease is $____________ ($_________ monthly). Such [Base Annual Rent] payable under the Lease
shall be adjusted during the initial term of the Lease as follows: (a) from ___________, 20__ to and including ______________,
20__, the Base Annual Rent shall be $_______ ($_______ monthly); (b) from ___________, 20___ to and including ____________, 20___
the Base Annual Rent shall be $________

 

    	F-1

    	 

    

 

($________ monthly); [and from __________, 20__ to and including __________, 20___ the
Base Annual Rent shall be $_________ ($__________ monthly)]. Such rent has been paid through and including the month of ____________,
2014. Additional rent under the Lease has been paid through and including the month of __________, 2014. No such rent (excluding
security deposits) has been paid more than one (1) month in advance of its due date.

 

8.          Tenant's
security deposit, if any, is $_________________ (if none, please state “none”).

 

9.          No
event has occurred and no condition exists that constitutes, or that with the giving of notice or the lapse of time or both, would
constitute, a default by Tenant or, to the best knowledge of Tenant, Landlord under the Lease. Tenant has no existing defenses
or offsets against the enforcement of the Lease by Landlord.

 

10.         (a)          All
required contributions by Landlord to Tenant on account of Tenant's improvements have been received by Tenant and all of Tenant's
tenant improvements have been completed in accordance with the terms of the Lease.

 

(b)          Landlord
has satisfied all its obligations to Tenant arising out of or incurred in connection with the construction of the tenant improvements
on the Premises and no off-set exists with respect to any rents or other sums payable or to become payable by the Tenant under
the Lease.

 

11.         All
licenses necessary for using and operating the Premises as a medical office are held by Tenant and are in full force and effect.

 

12.         No
voluntary actions or, to Tenant’s best knowledge, involuntary actions are pending against Tenant under the bankruptcy laws
of the United States or any state thereof

 

13.         This
Certificate is delivered to induce Lessee to acquire the Premises and Lender to provide certain financing to Lessee, with the
understanding that Lessee and Lender shall rely upon the truth of the matters set forth in this Certificate.

 

[SIGNATURE PAGE FOLLOWS]

 

    	F-2

    	 

    

 

The undersigned is
duly authorized to execute this Certificate on behalf of Tenant.

 

Dated: ____________, 2014

 

TENANT:

 

____________________, a ________________

 

	By: 	 	 
	 	Name:	 
	 	Title:	 

 

[DELETE THE FOLLOWING SECTION IF
THE LEASE IS NOT GUARANTEED]

 

[_________________________,
a _________________________] (“Guarantor”) certifies to and for the benefit of Lessee, Lender and their respective
successors and assigns as follows:

 

With respect to that
certain [Guaranty], dated as of ________ __, ____, by Guarantor to and for the benefit of Landlord (the “Guaranty”):
(a) Guarantor is the guarantor of the Lease pursuant to the Guaranty; (b) the Guaranty has not been modified, changed, altered,
supplemented or amended in any respect, nor have any provisions thereof been waived; (c) the Guaranty is valid and in full force
and effect on the date hereof; and (d) no voluntary actions or, to Guarantor’s best knowledge, involuntary actions are pending
against Guarantor under the bankruptcy laws of the United States or any state thereof. This Certificate is delivered to induce
Lessee to acquire the Premises and Lender to provide certain financing to Lessee, with the understanding that Lessee and Lender
shall rely upon the truth of the matters set forth in this Certificate. The undersigned is duly authorized to execute this Certificate.

 

Dated: ____________, 2014

 

	 	[USE FOLLOWING SIGNATURE BLOCK FOR
	 	ENTITY GUARANTOR]
	 	 
	 	GUARANTOR:
	 	 
	 	____________________,
	 	a ________________
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[USE FOLLOWING SIGNATURE BLOCK FOR 

PERSONAL GUARANTOR]
	 	 
	 	GUARANTOR:
	 	 
	 	 
	 	Name:

 

    	F-3

    	 

    

 

EXHIBIT G

 

[INTENTIONALLY OMITTED]

 

    	G-1

    	 

    

 

EXHIBIT H

 

FORM OF NOTICE TO TENANT

 

________________
___, 2014

 

TO:    [INSERT TENANT’S NOTICE ADDRESS FROM LEASE]

 

Re:    Notice of Change of Ownership of ______________________________

 

Ladies and Gentlemen:

 

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

 

That as of the date
hereof, the undersigned has transferred, sold, assigned, and conveyed all of its right, title and interest in and to the above-described
property (the “Property”) to [APPROVED ASSIGNEE] (the “New Owner”) and assigned to New Owner, all of the
undersigned’s right, title and interest under that certain Lease, dated _________, between ________as tenant and ____________as
landlord (the “Lease”), together with any security deposits or letters of credit held thereunder.

 

Accordingly, New Owner
is the landlord under the Lease and future notices and correspondence with respect to your leased premises at the Property should
be made to the New Owner at the following address:

 

[APPROVED ASSIGNEE]

c/o American Realty Capital Healthcare
Trust II, Inc.

7621 Little Avenue, Suite 200

Charlotte, North Carolina 28226

Attention: Regional Asset Manager

 

With a copy to:

 

[APPROVED ASSIGNEE]

c/o American Realty Capital Healthcare
Trust II, Inc.

405 Park Avenue, 14th Floor

New York, NY 10022

Attention: General Counsel

 

You will receive a
separate notification from New Owner regarding the new address for the payment of rent. In addition, to the extent required by
the Lease, please amend all insurance policies you are required to maintain pursuant to the Lease to name New Owner as an additional
insured thereunder and promptly provide New Owner with evidence thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

    	H-1

    	 

    

 

	 	Very truly yours,
	 	[PRIOR LANDLORD)
	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

    	H-2

    	 

    

 

EXHIBIT I

 

WARRANTIES

 

None

 

    	I-1

    	 

    

 

EXHIBIT J

 

Service
Contracts

 

	PHH 

        Contracting 

        Entity
	 	Vendor	 	Type of Services	 	Term	 	Cost	 	Comment
	FOHC	 	Cintas	 	Duralite Mats @ FOHC used by Environmental Services	 	 	 	$202.03/weekly	 	 
	CHC	 	Dempsey Uniform & Linen Supply	 	PH Community Health Center Logo
        (2)

        Welcome Pinnacle Health Logo (3)

         
	 	 	 	$5.72/weekly

         

        $5.72/weekly
	 	 
	Pinnacle	 	ABM Electrical Power Solutions	 	Professional engineering reliability/testing
        for electrical distribution equipment for:

         
	 	07/01/12 to 06/30/18

        (for 4 hospitals)
	 	$9,960/annually Polyclinic Hospital, $11,556/annually Harrisburg
    Hospital, $16,620/annually Community General Osteopathic Hospital, $3,564/annually Fredricksen Outpatient Center	 	 
	Fredricksen Center	 	Bailey Landscape and Maintenance, Inc.	 	Landscape maintenance of grounds	 	04/01/14 to 03/31/15	 	$99,889/annually	 	 
	Osteopathic Hospital	 	Bailey Landscape and Maintenance, Inc.	 	Landscape maintenance of grounds	 	04/01/14 to 03/31/15	 	$114,540/annually	 	 
	Harrisburg Hospital	 	Black Landscape Contracting	 	Landscape maintenance of campus	 	04/01/14 to 03/31/15	 	$23,000/annually	 	 
	Polyclinic Hospital	 	Black Landscape Contracting	 	Landscape maintenance of campus	 	04/01/14 to 03/31/15	 	$36,500/annually	 	 
	Pediatric Surgery – 2600 N. 3rd ST	 	Black Landscape Contracting	 	Landscape maintenance of campus	 	04/01/14 to 03/31/15	 	$3,900/annually	 	 
	Harrisburg Hospital (1 staff member year round)	 	Black Landscape Contracting	 	Landscape maintenance of campus	 	04/01/14 to 03/31/15	 	$68,000/annually	 	 
	Elizabeth PT	 	Black Landscape Contracting	 	Landscape maintenance of campus	 	04/01/14 to 03/31/15	 	$1,000/annually	 	 
	Pinnacle	 	Berkshire Systems Group	 	Fire system testing – service agreement	 	01/01/14 to 12/31/16	 	$13,692/annually	 	 

 

    	J-1

    	 

    

 

	PHH 

        Contracting 

        Entity
	 	Vendor	 	Type of Services	 	Term	 	Cost	 	Comment
	Pinnacle/CGOH	 	Cleveland Brothers	 	Preventative maintenance service
        agreement (emergency generators)

         
	 	04/01/14 to 03/30/16	 	$12,934/3-year term Community Campus (6 units), $21,465/3-year
    term Harrisburg Campus (6 units), $2,292/3-year term Brady Hall (1 unit), $1,101/3-year term Cole Support Services (1 unit),
    $5,507/3-year term Polyclinic Campus (3 units), $3,358/3-year term Fredricksen Outpatient (1 unit), $5,473/3-year term Fredricksen
    Load Bank	 	 
	Fredricksen Outpatient Center	 	Eastern Time	 	Fire alarm system – inspection, testing and maintenance	 	02/01/13 to 01/31/14	 	$4,536/annually	 	 
	Pinnacle	 	F.T.S. Management, Inc.	 	Preventative maintenance – fuel tank cleaning and testing	 	2014	 	$3,226/annually Harrisburg Hospital (7 tanks), $1,252/annually
    Polyclinic Hospital (3 tanks), $2,474/annually Community Campus (5 tanks), $800/annually Fredricksen Campus (2 tanks), $1,360.00
    Sulfur testing (17 tanks)	 	 
	Pinnacle	 	Greenhills	 	None stated	 	None stated	 	Varied	 	 
	Pinnacle	 	Kint Fire Protection	 	Fire suppression systems for:

        Harrisburg-Brady

        Community

        Polyclinic

        Fredricksen
	 	01/01/14 to 12/31/16	 	$3,876/annually	 	 
	Pinnacle	 	Kone, Inc.	 	Maintenance for vertical transportation equipment	 	2010 to 2015	 	$18,884/monthly	 	 

 

Exhibit J

 

    	 

    	 

    

 

	PHH 

        Contracting 

        Entity
	 	Vendor	 	Type of Services	 	Term	 	Cost	 	Comment
	Pinnacle	 	NRG Building Services	 	Maintenance – building automation
        system for:

        Polyclinic

        CGH

        Outpatient

        Cole Warehouse

        Harrisburg Hospital
	 	09-01/12 to 08/31/15	 	$68,175/annually	 	 
	Pinnacle	 	Orkin	 	Pest management	 	2014	 	$40,791.88/annually	 	 
	Pinnacle	 	Sodexho	 	Manage and operate services for patients, residents, employees,
    visitors and guests (food, etc.)	 	04-01-13 to 03-21-18	 	See attachments	 	 
	Pinnacle	 	Trane	 	Scheduled maintenance of chillers, cooling towers	 	08/01/12 to 07/31/15	 	$18,776/annually Bloom Outpatient Center, $18,817/annually Community
    General Osteopathic (central utility plant), $67,384/annually Community General Osteopathic, $19,339/annually Fredricksen
    Outpatient, $68,531/annually Polyclinic Hospital	 	 
	Pinnacle	 	Tri-Dim Filter Corp.	 	Filters, hepa, etc.	 	None stated	 	None stated	 	 
	Pinnacle	 	Waste Management	 	Waste disposal services	 	36 months and renewable	 	See attachments	 	 
	Pinnacle	 	Zeplin Security Group, Inc.	 	Alarm systems/monitoring	 	12/01/11

        (for 3 years)
	 	$25/monthly	 	 

 

 

Exhibit J

 

    	 

    	 

    

 

Schedule 1

 

Leasehold Transaction Price Allocation

 

	Property	 	Leasehold 
Transaction Price	 	 	Earnest Money	 
	Bloom Property	 	$	16,775,000.00	 	 	$	840,000.00	 
	Brady Property	 	$	26,370,000.00	 	 	$	1,320,000.00	 
	Community Health Property	 	$	7,020,000.00	 	 	$	350,000.00	 
	FOC Property	 	 	 	 	 	 	 	 
	(a)  Property subject to the FOC Clinical Lease	 	$	24,065,000.00	 	 	$	1,200,000.00	 
	(b) Property subject to the FOC I Lease	 	$	11,255,000.00	 	 	$	560,000.00	 
	(c) Property subject to the FOC II Lease	 	$	20,585,000.00	 	 	$	1,030,000.00	 
	Landis Property	 	$	42,565,000.00	 	 	$	2,130,000.00	 
	Medical Sciences Property	 	$	25,425,000.00	 	 	$	1,270,000.00	 
	Totals	 	$	174,060,000.00	 	 	$	8,700,000.00	 

 

Schedule 1

 

    	 

    	 

    

 

Schedule 6(e)

 

Ground Lease Terms

 

	Ground Lessor:	PinnacleHealth, a Pennsylvania non-profit corporation
	 	 
	Ground Tenant:	Applicable Approved Assignee
	 	 
	Rent Commencement Date:	Upon transaction close
	 	 
	Expiration Date:	55 years
	 	 
	Current Rent:	$1,000.00 per month per property
	 	 
	Escalation:	2.5% annual increase
	 	 
	Renewal Options:	Two, 10-year options

 

Schedule 6(e)

 

    	 

    	 

    

 

Schedule 6(f)

 

Pinnacle Lease Terms

 

(attached)

 

Schedule 6(f)

 

    	 

    	 

    

  

 

  

Note: The ground lease payment is not
reimbursed by the tenant.

 

Schedule 6(f)

 

    	 

    	 

    

 

Schedule 11(f)(iv)

 

Tenant Improvement Allowances

 

	Property	 	Suite/Tenant	 	Status
	FOC	 	Suite 211 – RMA	 	Balance as of 5/15/14 - $11,903.73.  They pay an additional
    payment of $658.30 monthly to us.  The payment includes a 6% interest and they will complete their payments on 12/15/15.
	FOC	 	Suite 209 – RMA	 	We are working with them on an expansion and have included a
    fit-out allowance of $54,835 as part of the rental payment.  This lease was already in process prior to the RFP
    being sent out.
	FOC	 	Ability Prosthetics	 	Tenant Fit-out Allowance - $65 sq. ft. in exchange for a 10 year
    lease agreement.  November and December 2011 payments waived as part of the lease negotiations.
	FOC	 	Kakaria	 	Tenant Fit-out Allowance - $65 sq. ft. in exchange for a 10 year
    lease agreement.

 

Schedule 11(f)(iv)

 

    	 

    	 

    

 

Schedule 11(f)(vi)

 

Rent Concessions

 

	Property	 	Tenant	 	Details
	Polyclinic	 	Advanced Pain Management

         

        3 Landis within Rehab
        Options Space
	 	10% discount offered if rent paid in advance rather than monthly
    for the year.  Tenant paid $4,713.93, thus rent paid through 7/31/14
	FOC	 	Grossman Foot and Ankle

         

        Time Share Suite 201
	 	Tenant originally occupied Suite 209 and
    paid for the year (through 6/30/14)(which included a 10% discount inasmuch as the rent was paid in full). Landlord requested
    Tenant to relocate to Suite 201 so that Landlord could expand the RMA Suite.  Tenant did relocate in December 2013.
    Since Tenant had already prepaid rent for Suite 209, the lease for Suite 201 included rent concession for July, August and
    September 2014. Tenant paid Landlord in April 2014 for the period October 2014 – June 30, 2015 (the aforementioned 10%
    discount was applied to the payment).

 

Schedule 11(f)(vi)

 

    	 

    	 

    

 

Schedule 11(f)(vii)

 

Prepaid Rents, Security Deposits and
Letters Of Credit

 

	 	 	 	 	 	 	 	 	 	 	Deposits	 	 	Deposits	 	 	Deposits	 
	Customer Name	 	Account	 	Unit	 	Address	 	Move In	 	Charged	 	 	Received	 	 	Held	 
	Bloom Building	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRISM (2,186 Sq Ft.) Suite 106	 	41	 	PRISM	 	Attention Kendra Rhayem	 	05/01/03	 	 	4,007.66	 	 	 	4,007.66	 	 	 	4,007.66	 
	PRISM (3,447 Sq Ft.) Sutie 100	 	41	 	PRISM	 	Attention Kendra Rhayem	 	2006	 	 	1,436.25	 	 	 	1,436.25	 	 	 	1,436.25	 
	PRISM (1,733 Sq Ft.)	 	41	 	PRISM	 	Attention Kendra Rhayem	 	2007/08	 	 	722.08	 	 	 	722.08	 	 	 	722.08	 
	Medical Arts Allergy Bloom 201	 	208	 	MedArtAlgy	 	c/o Elain Novak	 	02/17/12	 	 	3676.89	 	 	 	3676.89	 	 	 	3676.89	 
	Urology of Central PA Bloom 101	 	35	 	Urology101	 	Suite 101	 	02/01/04	 	 	5,458.92	 	 	 	5,458.92	 	 	 	5,458.92	 
	Totals for Property	 	 	 	 	 	 	 	 	 	 	15,301.80	 	 	 	15,301.80	 	 	 	15,301.80	 

 

Schedule 11(f)(vii)

 

    	 

    	 

    

 

	 	 	 	 	 	 	 	 	 	 	Deposits	 	 	Deposits	 	 	Deposits	 
	Customer Name	 	Account	 	Unit	 	Address	 	Move In	 	Charged	 	 	Received	 	 	Held	 
	FOC-Physician Office Building 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Burick Center for Health & Wellness	 	172	 	Burick	 	2005 Technology Parkway	 	08/01/10	 	 	4289.00	 	 	 	4289.00	 	 	 	4289.00	 
	Dr. Sandeep Kakaria	 	212	 	Kakaria	 	2005 Technology Parkway	 	02/01/12	 	 	2815.00	 	 	 	2815.00	 	 	 	2815.00	 
	Ability Prosthetics	 	204	 	AbilityPro	 	2005 Technology Parkway	 	08/15/11	 	 	4,722.00	 	 	 	4,722.00	 	 	 	4,722.00	 
	Totals for Property	 	 	 	 	 	 	 	 	 	 	11,826.00	 	 	 	11,826.00	 	 	 	11,826.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fredricksen Outpatient Center 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dr. Peter Sakol	 	20	 	Sakol	 	Suite 205	 	02/14/09	 	 	2,245.42	 	 	 	2,245.42	 	 	 	2,245.42	 
	de Ramon Plastic Surgery Institute, PC	 	16	 	deRamon	 	Suite 303	 	08/15/02	 	 	2,779.50	 	 	 	2,779.50	 	 	 	2,779.50	 
	Farrell Plastic Surgery	 	17	 	Farrell	 	Suite 204	 	04/01/00	 	 	2,833.33	 	 	 	2,833.33	 	 	 	2,833.33	 
	Good Day Pharmacy	 	25	 	Good Day	 	2250 Millennium Way, Suite 300	 	03/01/05	 	 	2,180.75	 	 	 	2,180.75	 	 	 	2,180.75	 
	Dr. Abram HENT	 	216	 	AbramHENT	 	Suite G03	 	04/01/12	 	 	3412.50	 	 	 	3412.50	 	 	 	3412.50	 
	Armesto Eye Associates OPTICAL SHOP	 	36	 	ArmstOShop	 	Suite 103 - Optical Shop	 	01/01/04	 	 	364.00	 	 	 	364.00	 	 	 	364.00	 
	Calcagno & Rossi Vein Treatment Ctr.	 	29	 	Calcagno/R	 	Suite 304 & 306	 	01/01/07	 	 	4,028.75	 	 	 	4,028.75	 	 	 	4,028.75	 
	JDC Pediatrics	 	19	 	JonesDalyC	 	Suite 108	 	07/01/01	 	 	6,000.00	 	 	 	6,000.00	 	 	 	6,000.00	 
	Medical Arts Allergy - FOC 310	 	21	 	MedArtAlle	 	c/o Elaine Novak	 	11/01/00	 	 	2,000.00	 	 	 	2,000.00	 	 	 	2,000.00	 
	Dr. Scott Mueller	 	28	 	S. Mueller	 	2025 Technology Parkway	 	10/20/00	 	 	2,643.33	 	 	 	2,643.33	 	 	 	2,643.33	 
	Totals for Property	 	 	 	 	 	 	 	 	 	 	28,487.58	 	 	 	28,487.58	 	 	 	28487.58	 

 

Schedule 11(f)(vii)

 

    	 

    	 

    

 

Schedule 25

 

Approved Assignees

 

	Property	 	Approved Assignee
	Bloom Property	 	ARHC BLHBGPA01, LLC
	Brady Property	 	ARHC BRHBGPA01, LLC
	Community Health Property	 	ARHC CHHBGPA01, LLC
	FOC Real Property	 	ARHC FOMBGPA01, LLC
	Landis Property	 	ARHC LMHBGPA01, LLC
	Medical Sciences Property	 	ARHC MSHBGPA01, LLC

 

Schedule 25

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