Document:

EXHIBIT (10)-57

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

                             PARTICIPATION AGREEMENT

                          Dated as of December 27, 2001

                                      among

                        HEALTHSOUTH MEDICAL CENTER, INC.,
                  as the Construction Agent and as the Lessee,

                            HEALTHSOUTH CORPORATION,
                                as the Guarantor

                       State Street Bank and Trust Company
                      of connecticut, national association,
              not individually, except as expressly stated herein,
         but solely as Owner Trustee for Digital Hospital Trust 2001-1,

       THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS WHICH ARE PARTIES
                    HERETO FROM TIME TO TIME, as the Holders,

       THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS WHICH ARE PARTIES
                    HERETO FROM TIME TO TIME, as the Lenders,

                                       and

                           FIRST UNION NATIONAL BANK,
                          as the Agent for the Lenders
                     and respecting the Security Documents,
                      as the Agent for the Secured Parties

--------------------------------------------------------------------------------
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
SECTION 1.  THE LOANS.............................................................................................1

SECTION 2.  HOLDER ADVANCES.......................................................................................2

SECTION 3.  SUMMARY OF TRANSACTIONS...............................................................................2
         3.1.     Operative Agreements............................................................................2
         3.2.     Property Purchase...............................................................................2
         3.3.     Construction of Improvements; Commencement of Basic Rent........................................3
         3.4.     Ratable Interests of the Holders and the Lenders................................................3

SECTION 4.  THE CLOSINGS..........................................................................................3
         4.1.     Initial Closing Date............................................................................3
         4.2.     Initial Closing Date; Property Closing Dates; Acquisition Advances; Construction Advances.......3

SECTION 5.  FUNDING OF ADVANCES; CONDITIONS PRECEDENT; REPORTING REQUIREMENTS ON COMPLETION DATE; THE LESSEE'S
DELIVERY OF NOTICES; RESTRICTIONS ON LIENS........................................................................4
         5.1.     General.........................................................................................4
         5.2.     Procedures for Funding..........................................................................4
         5.3.     Conditions Precedent for  the Lessor, the Agent, the Lenders and the Holders Relating to the
                  Initial Closing Date and the Advance of Funds for the Acquisition of a Property.................6
         5.4.     Conditions Precedent for the Lessor, the Agent, the Lenders and the Holders Relating to the
                  Advance of Funds after the Acquisition Advance.................................................12
         5.5.     Additional Reporting and Delivery Requirements on Completion Date and on Construction Period
                  Termination Date...............................................................................13
         5.6.     The Construction Agent Delivery of Construction Budget Modifications...........................14
         5.7.     Restrictions on Liens..........................................................................14
         5.8.     [Intentionally Omitted]........................................................................14
         5.9.     Maintenance of the Lessee as a Wholly-Owned Entity.............................................14
         5.10.    Payments.......................................................................................15
         5.11.    Cash Collateral Account........................................................................15
         5.12.    [Intentionally Omitted]........................................................................16
         5.13.    Special Provision Regarding Renewal Term.......................................................16
         5.14.    Special Provision Regarding Mortgage Tax.......................................................16
         5.15.    Availability of Advances for Lessee and Construction Agent Obligations.........................16
         5.16.    Construction of Transaction....................................................................16
         5.17.    Payment of Ground Lease Rent...................................................................16
         5.18.    Force Majeure..................................................................................17
         5.19.    Accrual of Interest and Holder Yield Regarding Excluded Costs..................................18

SECTION 6.  REPRESENTATIONS AND WARRANTIES.......................................................................18
         6.1.     Representations and Warranties of the Borrower.................................................18
         6.2.     Representations and Warranties of Each Credit Party............................................21
</TABLE>

                                        i
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                             <C>
SECTION 6B.  GUARANTY............................................................................................27
         6B.1.    Guaranty of Payment and Performance............................................................27
         6B.2.    Obligations Unconditional......................................................................27
         6B.3.    Modifications..................................................................................28
         6B.4.    Waiver of Rights...............................................................................29
         6B.5.    Reinstatement..................................................................................29
         6B.6.    Remedies.......................................................................................29
         6B.7.    Limitation of Guaranty.........................................................................30

SECTION 7. PAYMENT OF CERTAIN EXPENSES...........................................................................30
         7.1.     Transaction Expenses...........................................................................30
         7.2.     Brokers' Fees..................................................................................31
         7.3.     Certain Fees and Expenses......................................................................31
         7.4.     Unused Fee.....................................................................................32
         7.5.     Administrative Fee.............................................................................32
         7.6.     Upfront Fee....................................................................................32
         7.7.     Structuring Fee................................................................................33

SECTION 8.  OTHER COVENANTS AND AGREEMENTS.......................................................................33
         8.1.     Cooperation with the Construction Agent or the Lessee..........................................33
         8.2.     Covenants of the Owner Trustee and the Holders.................................................33
         8.3.     Credit Party Covenants, Consent and Acknowledgment.............................................35
         8.4.     Sharing of Certain Payments....................................................................39
         8.5.     Grant of Easements, etc........................................................................39
         8.6.     Appointment by the Agent, the Lenders, the Holders and the Owner Trustee.......................39
         8.7.     Collection and Allocation of Payments and Other Amounts........................................40
         8.8.     Release of Properties, etc.....................................................................43

SECTION 9.  CREDIT AGREEMENT AND TRUST AGREEMENT.................................................................44
         9.1.     The Construction Agent's and the Lessee's Credit Agreement Rights..............................44
         9.2.     The Construction Agent's and the Lessee's Trust Agreement Rights...............................44

SECTION 10.  TRANSFER OF INTEREST................................................................................45
         10.1.    Restrictions on Transfer.......................................................................45
         10.2.    Effect of Transfer.............................................................................46

SECTION 11.  INDEMNIFICATION.....................................................................................46
         11.1.    General Indemnity..............................................................................46
         11.2.    General Tax Indemnity..........................................................................49
         11.3.    Increased Costs, Illegality, etc...............................................................53
         11.4.    Funding/Contribution Indemnity.................................................................54
         11.5.    EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT LIABILITY, ETC.........................55
         11.6.    Additional Provisions Regarding Environmental Indemnification..................................56
         11.7.    Indemnity Prior to Completion Date.............................................................56
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                             <C>
SECTION 12.  MISCELLANEOUS.......................................................................................56
         12.1.    Survival of Agreements.........................................................................56
         12.2.    Notices........................................................................................57
         12.3.    Counterparts...................................................................................59
         12.4.    Terminations, Amendments, Waivers, Etc.; Unanimous Vote Matters................................59
         12.5.    Headings, etc..................................................................................61
         12.6.    Parties in Interest............................................................................61
         12.7.    GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL; VENUE.........................61
         12.8.    Severability...................................................................................62
         12.9.    Liability Limited..............................................................................62
         12.10.   Rights of the Credit Parties...................................................................63
         12.11.   Further Assurances.............................................................................64
         12.12.   Calculations under Operative Agreements........................................................64
         12.13.   Confidentiality................................................................................64
         12.14.   Financial Reporting/Tax Characterization.......................................................66
         12.15.   Set-off........................................................................................66

NATIONAL ASSOCIATION................................................................ERROR! BOOKMARK NOT DEFINED.
</TABLE>

                                      iii
<PAGE>

EXHIBITS

A - Form of Requisition - Sections 4.2, 5.2, 5.3 and 5.4

B - Form of Outside Counsel Opinion for the Lessee - Section 5.3(j)

C - Form of Officer's Certificate - Section 5.3(z)

D- Form of Secretary's Certificate - Section 5.3(aa)

E - Form of Officer's Certificate - Section 5.3(cc)

F - Form of Secretary's Certificate - Section 5.3(dd)

G - Form of Outside Counsel Opinion for the Owner Trustee - Section 5.3(ee)

H - Form of Outside Counsel Opinion for the Lessee - Section 5.3(ff)

I - Form of Officer's Certificate - Section 5.5

J - [Intentionally Omitted]

K -Description of Material Litigation - Section 6.2(d)

L - Form of Cash Collateral Agreement - Section 5.11

M - Form of Control Agreement - Section 5.11

Appendix A - Rules of Usage and Definitions

                                       iv
<PAGE>

                             PARTICIPATION AGREEMENT

         THIS PARTICIPATION AGREEMENT dated as of December 27, 2001 (as amended,
modified, extended, supplemented, restated and/or replaced from time to time,
this "Agreement") is by and among HEALTHSOUTH MEDICAL CENTER, INC., an Alabama
corporation (the "Lessee" or the "Construction Agent"); HEALTHSOUTH CORPORATION,
a Delaware corporation (the "Guarantor"); State Street Bank and Trust Company OF
CONNECTICUT, NATIONAL ASSOCIATION, a national banking association, not
individually (in its individual capacity, the "Trust Company"), except as
expressly stated herein, but solely as Owner Trustee for Digital Hospital Trust
2001-1 (the "Owner Trustee", the "Borrower" or the "Lessor"); the various banks
and other lending institutions which are parties hereto from time to time as
holders of certificates issued with respect to the Digital Hospital Trust 2001-1
(subject to the definition of Holders in Appendix A hereto, individually, a
"Holder" and collectively, the "Holders"); the various banks and other lending
institutions which are parties hereto from time to time as lenders (subject to
the definition of Lenders in Appendix A hereto, individually, a "Lender" and
collectively, the "Lenders"); and FIRST UNION NATIONAL BANK, a national banking
association, as the agent for the Lenders and respecting the Security Documents,
as the agent for the Secured Parties (in such capacity, the "Agent").
Capitalized terms used but not otherwise defined in this Agreement shall have
the meanings set forth in Appendix A hereto.

         In consideration of the mutual agreements herein contained and other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto hereby agree as follows:

                              SECTION 1. THE LOANS.

         Subject to the terms and conditions of this Agreement and the other
Operative Agreements and in reliance on the representations and warranties of
each of the parties hereto contained herein or made pursuant hereto, the Lenders
have agreed to make Loans to the Lessor from time to time in an aggregate
principal amount of up to the aggregate amount of the Commitments of the Lenders
in order for the Lessor to acquire the Properties and certain Improvements, to
develop and construct certain Improvements in accordance with the Agency
Agreement and the terms and provisions hereof and for the other purposes
described herein, and in consideration of the receipt of proceeds of the Loans,
the Lessor will issue the Notes. The Loans shall be made and the Notes shall be
issued pursuant to the Credit Agreement. Pursuant to Section 5 of this Agreement
and Section 2 of the Credit Agreement, the Loans will be made to the Lessor from
time to time at the request of the Construction Agent in consideration for the
Construction Agent agreeing for the benefit of the Lessor, pursuant to the
Agency Agreement, to acquire the Properties, to acquire the Equipment, to
construct certain Improvements and to cause the Lessee to lease the Properties,
each in accordance with the Agency Agreement and the other Operative Agreements.
The Loans and the obligations of the Lessor under the Credit Agreement shall be
secured by the Collateral.

                                       1
<PAGE>

                           SECTION 2. HOLDER ADVANCES.

         Subject to the terms and conditions of this Agreement and the other
Operative Agreements and in reliance on the representations and warranties of
each of the parties hereto contained herein or made pursuant hereto, on each
date Advances are requested to be made in accordance with Section 5 hereof, each
Holder shall make a Holder Advance in proportion to each such Holder's share of
the aggregate Holder Commitments to the Lessor with respect to the Digital
Hospital Trust 2001-1 in immediately available funds in an amount equal to three
percent (3%) of the amount of the Requested Funds (less the Holder Fees);
provided, that no Holder shall be obligated for any Holder Advance in excess of
its pro rata share of the Available Holder Commitment; provided, further, with
respect to the Holder Fees, each Holder shall make a Holder Advance for Holder
Fees in proportion to each such Holder's share of the aggregate Holder
Commitments such that the aggregate of all Holder Advances shall be one hundred
percent (100%) of the Holder Fees payable on such date. The aggregate amount of
Holder Advances shall be up to the aggregate amount of the Holder Commitments.
No prepayment or any other payment with respect to any Advance shall be
permitted such that the Holder Advance with respect to such Advance is less than
three percent (3%) of the outstanding amount of such Advance plus the Holder
Fees, except in connection with termination or expiration of the Term or in
connection with the exercise of remedies relating to the occurrence of a Lease
Event of Default. The representations, warranties, covenants and agreements of
the Holders herein and in the other Operative Agreements are several, and not
joint or joint and several.

                       SECTION 3. SUMMARY OF TRANSACTIONS.

         3.1.     OPERATIVE AGREEMENTS.
                  --------------------

         On the date hereof, each of the respective parties hereto and thereto
shall execute and deliver this Agreement, the Lease, each applicable Ground
Lease, the Agency Agreement, the Credit Agreement, the Notes, the Trust
Agreement, the Certificates, the Security Agreement, the Cash Collateral
Agreement, the Control Agreement, each applicable Mortgage Instrument and such
other documents, instruments, certificates and opinions of counsel as agreed to
by the parties hereto.

         3.2.     PROPERTY PURCHASE.
                  -----------------

         On each Property Closing Date and subject to the terms and conditions
of this Agreement (a) the Holders will each make a Holder Advance in accordance
with Sections 2 and 5 of this Agreement and the terms and provisions of the
Trust Agreement, (b) the Lenders will each make Loans in accordance with
Sections 1 and 5 of this Agreement and the terms and provisions of the Credit
Agreement, (c) the Lessor will purchase and acquire good and marketable title to
or ground lease pursuant to a Ground Lease, the applicable Property, each to be
within an Approved State, identified by the Construction Agent, in each case
pursuant to a Deed, Bill of Sale or Ground Lease, as the case may be, and grant
the Agent a lien on such Property by execution of the required Security
Documents, (d) the Agent, the Lessee and the Lessor shall execute and deliver a
Lease Supplement relating to such Property and (e) the Term shall commence with
respect to such Property.

                                       2
<PAGE>

         3.3.     CONSTRUCTION OF IMPROVEMENTS; COMMENCEMENT OF BASIC RENT.
                  --------------------------------------------------------

         Construction Advances will be made with respect to particular
Improvements to be constructed and with respect to ongoing Work regarding the
Equipment and construction of particular Improvements, in each case, pursuant to
the terms and conditions of this Agreement and the Agency Agreement. The
Construction Agent will act as a construction agent on behalf of the Lessor
respecting the Work regarding the Equipment, the construction of such
Improvements and the expenditures of the Construction Advances related to the
foregoing. The Construction Agent shall promptly notify the Lessor upon
Completion of the Improvements and the Lessee shall commence to pay Basic Rent
as of the Rent Commencement Date.

         3.4.     RATABLE INTERESTS OF THE HOLDERS AND THE LENDERS.
                  ------------------------------------------------

         Each Holder and Lender agrees at all times (a) to hold the same ratable
portion of the aggregate Lender Commitment for Tranche A Loans, the aggregate
Lender Commitment for Tranche B Loans and the aggregate Holder Commitment and
(b) to make advances consistent with such committed amounts referenced in
Section 3.4(a) in accordance with the requirements of the Operative Agreements.

                            SECTION 4. THE CLOSINGS.

         4.1.     INITIAL CLOSING DATE.
                  --------------------

         All documents and instruments required to be delivered on the Initial
Closing Date shall be delivered at the offices of Moore & Van Allen, PLLC,
Charlotte, North Carolina, or at such other location as may be determined by the
Lessor, the Agent and the Lessee.

         4.2.     INITIAL CLOSING DATE; PROPERTY CLOSING DATES; ACQUISITION
                  ---------------------------------------------------------
                  ADVANCES; CONSTRUCTION ADVANCES.
                  --------------------------------

         The Construction Agent shall deliver to the Agent a requisition (a
"Requisition"), in the form attached hereto as Exhibit A or in such other form
as is satisfactory to the Agent, in its reasonable discretion, in connection
with (a) the Transaction Expenses and other fees, expenses and disbursements
payable, pursuant to Section 7.1, by the Lessor and (b) each Acquisition Advance
pursuant to Section 5.3 and (c) each Construction Advance pursuant to Section
5.4.

                                       3
<PAGE>

        SECTION 5. FUNDING OF ADVANCES; CONDITIONS PRECEDENT; REPORTING
            REQUIREMENTS ON COMPLETION DATE; THE LESSEE'S DELIVERY OF
                         NOTICES; RESTRICTIONS ON LIENS.

         5.1.     GENERAL.
                  -------

                  (a) To the extent funds have been advanced to the Lessor as
         Loans by the Lenders and to the Lessor as Holder Advances by the
         Holders, the Lessor will use such funds from time to time in accordance
         with the terms and conditions of this Agreement and the other Operative
         Agreements (i) at the direction of the Construction Agent to acquire
         the Properties in accordance with the terms of this Agreement, the
         Agency Agreement and the other Operative Agreements, (ii) to make
         Advances to the Construction Agent to permit the acquisition, testing,
         engineering, installation, development, construction, modification,
         design, and renovation, as applicable, of the Properties (or components
         thereof) in accordance with the terms of the Agency Agreement and the
         other Operative Agreements, and (iii) to pay Transaction Expenses,
         fees, expenses and other disbursements payable by the Lessor under
         Sections 7.1(a) and 7.1(b).

                  (b) In lieu of the payment of interest on the Loans and Holder
         Yield on the Holder Advances on any Scheduled Interest Payment Date
         with respect to any Property during the period prior to the Rent
         Commencement Date with respect to such Property, (i) each Lender's Loan
         shall automatically be increased by the amount of interest accrued and
         unpaid on such Loan for such period (except to the extent that at any
         time such increase would cause such Lender's Loan to exceed such
         Lender's Available Commitment, in which case the Lessee shall pay such
         excess amount to such Lender in immediately available funds on the date
         such Lender's Available Commitment was exceeded), and (ii) each
         Holder's Holder Advance shall automatically be increased by the amount
         of Holder Yield accrued and unpaid on such Holder Advance for such
         period (except to the extent that at any time such increase would cause
         the Holder Advance of such Holder to exceed such Holder's Available
         Holder Commitment, in which case the Lessee shall pay such excess
         amount to such Holder in immediately available funds on the date the
         Available Holder Commitment of such Holder was exceeded). Such
         increases in a Lender's Loan and a Holder's Holder Advance shall occur
         without any disbursement of funds by any Person.

         5.2.     PROCEDURES FOR FUNDING.
                  ----------------------

                  (a) The Construction Agent shall designate the date for
         Advances hereunder in accordance with the terms and provisions hereof,
         which in all cases shall be the first day of an Interest Period;
         provided, however, it is understood and agreed that no more than two
         (2) Advances (excluding any conversion and/or continuation of any Loans
         or Holder Advances) may be requested during any calendar month. Except
         as otherwise expressly agreed by the Agent, all Advances shall be made
         to accounts located outside of the State of Alabama. Not less than (i)
         three (3) Business Days prior to the Initial Closing Date and (ii)
         three (3) Business Days prior to the date on which any Acquisition

                                       4
<PAGE>

         Advance or Construction Advance is to be made, the Construction Agent
         shall deliver to the Agent, (A) with respect to the Initial Closing
         Date and each Acquisition Advance, a Requisition as described in
         Section 4.2 hereof (including without limitation a legal description of
         the Land, if any, a schedule of the Improvements, if any, and a
         schedule of the Equipment, if any, acquired or to be acquired on such
         date, and a schedule of the Work, if any, to be performed, each of the
         foregoing in a form reasonably acceptable to the Agent) and (B) with
         respect to each Construction Advance, a Requisition identifying (among
         other things) the Property to which such Construction Advance relates.

                  (b) Each Requisition shall: (i) be irrevocable, (ii) request
         funds in an amount that is not in excess of the total aggregate of the
         Available Commitments plus the Available Holder Commitments at such
         time, and (iii) request that the Holders make Holder Advances and that
         the Lenders make Loans to the Lessor for the payment of Transaction
         Expenses, Property Acquisition Costs (in the case of an Acquisition
         Advance) or other Property Costs (in the case of a Construction
         Advance) that have previously been incurred or are to be incurred on
         the date of such Advance to the extent such were not subject to a prior
         Requisition, in each case as specified in the Requisition.

                  (c) Subject to the satisfaction of the conditions precedent
         set forth in Sections 5.3 or 5.4, as applicable, on each Property
         Closing Date or the date on which the Construction Advance is to be
         made and with respect to the Requested Funds, including without
         limitation Holder Fees specified in any Requisition, as applicable, (i)
         each Lender shall make Loans to the Lessor in an amount equal to such
         Lender's proportionate share of ninety-seven percent (97%) of the
         Requested Funds (less Holder Fees) and (ii) each Holder shall make a
         Holder Advance to the Lessor in an amount equal to such Holder's
         proportionate share of the sum of three percent (3%) of the Requested
         Funds plus such Holder's proportionate share of the Holder Fees set
         forth in such Requisition. The Tranche A Lenders shall make Loans to
         the Lessor in proportion to such Tranche A Lender's share of the
         aggregate Tranche A Commitments of eighty-five percent (85%) of the
         Requested Funds (less the Holder Fees); the Tranche B Lenders shall
         make Loans to the Lessor in proportion to such Tranche B Lender's share
         of the aggregate Tranche B Commitments of twelve percent (12%) of the
         Requested Funds (less the Holder Fees), up to an aggregate principal
         amount equal to the aggregate of the Available Commitments; and each
         Holder shall make a Holder Advance in proportion to such Holder's share
         of the aggregate Holder Commitments of three percent (3%) of the
         Requested Funds (less the Holder Fees) plus such Holder's share of the
         Holder Fees specified in such Requisition, up to the aggregate advanced
         amount equal to the aggregate of the Available Holder Commitments. The
         total amount of such Loans and Holder Advances made on such date shall
         (x) be used by the Lessor to pay Property Costs including Transaction
         Expenses within three (3) Business Days of the receipt by the Lessor of
         such Advance or (y) be advanced by the Lessor on the date of such
         Advance to the Construction Agent or the Lessee to pay Property Costs,
         as applicable. Notwithstanding that the Operative Agreements state that
         Advances shall be directed to the Lessor, each Advance shall in fact be
         directed to the Construction Agent (for the benefit of the Lessor) and
         applied by the Construction Agent (for the benefit of the Lessor)
         pursuant to the requirements imposed on the Lessor under the Operative
         Agreements.

                                       5
<PAGE>

                  (d) With respect to an Advance obtained by the Lessor to pay
         for Property Costs and/or Transaction Expenses or other costs payable
         under Section 7.1 hereof and not expended by the Lessor for such
         purpose on the date of such Advance, such amounts shall be held by the
         Construction Agent until the applicable payment date or, if such
         payment date does not occur within three (3) Business Days of the date
         of the Construction Agent's receipt of such Advance, shall be paid to
         the Agent to be applied regarding the applicable Advance to repay the
         Lenders and the Holders and, subject to the terms hereof, and of the
         Credit Agreement and the Trust Agreement, shall remain available for
         future Advances. Any such amounts held by the Agent shall be subject to
         the lien of the Security Agreement and shall accrue interest and Holder
         Yield from the date any such amount is advanced to the Agent.

                  (e) All Operative Agreements which are to be delivered to the
         Lessor, the Agent, the Lenders or the Holders shall be delivered to the
         Agent, on behalf of the Lessor, the Agent, the Lenders or the Holders,
         and such items (except for Notes, Certificates, Bills of Sale, the
         Ground Leases and chattel paper originals, with respect to which in
         each case there shall be only one original) shall be delivered with
         originals sufficient for the Lessor, the Agent, each Lender and each
         Holder. All other items which are to be delivered to the Lessor, the
         Agent, the Lenders or the Holders shall be delivered to the Agent, on
         behalf of the Lessor, the Agent, the Lenders or the Holders, and such
         other items shall be held by the Agent. To the extent any such other
         items are requested in writing from time to time by the Lessor, any
         Lender or any Holder, the Agent shall provide a copy of such item to
         the party requesting it.

                  (f) Notwithstanding funding of any Advance under this
         Agreement pursuant to Sections 5.3 or 5.4, each condition precedent in
         connection with any such Advance may be subsequently enforced by the
         Agent as a covenant of the applicable party (unless such has been
         expressly waived in writing by the Agent acting upon the direction of
         the Majority Secured Parties).

         5.3.     CONDITIONS PRECEDENT FOR THE LESSOR, THE AGENT, THE LENDERS
                  -----------------------------------------------------------
                  AND THE HOLDERS RELATING TO THE INITIAL CLOSING DATE AND THE
                  ------------------------------------------------------------
                  ADVANCE OF FUNDS FOR THE ACQUISITION OF A PROPERTY.
                  --------------------------------------------------

         The obligations (i) on the Initial Closing Date of the Lessor, the
Agent, the Lenders and the Holders to enter into the transactions contemplated
by this Agreement, including without limitation the obligation to execute and
deliver the applicable Operative Agreements to which each is a party on the
Initial Closing Date, (ii) on the Initial Closing Date of the Holders to make
Holder Advances, and of the Lenders to make Loans in order to pay Transaction
Expenses, fees, expenses and other disbursements payable by the Lessor under
Section 7.1(a) of this Agreement and (iii) on a Property Closing Date for the
purpose of providing funds to the Lessor necessary to pay the Transaction
Expenses, fees, expenses and other disbursements payable by the Lessor under
Section 7.1(b) of this Agreement and to acquire or ground lease a Property (an
"Acquisition Advance"), in each case (with regard to the foregoing Sections
5.3(i), (ii) and (iii)) are subject to the satisfaction or waiver of the

                                       6
<PAGE>

following conditions precedent on or prior to the Initial Closing Date or the
applicable Property Closing Date, as the case may be (to the extent such
conditions precedent require the delivery of any agreement, certificate,
instrument, memorandum, legal or other opinion, appraisal, commitment, title
insurance commitment, lien report or any other document of any kind or type,
such shall be in form and substance satisfactory to the Agent, in its reasonable
discretion; notwithstanding the foregoing, the obligations of each party shall
not be subject to any conditions contained in this Section 5.3 which are
required to be performed by such party):

                  (a) the correctness of the representations and warranties of
         the parties to this Agreement contained herein, in each of the other
         Operative Agreements and each certificate delivered pursuant to any
         Operative Agreement (including without limitation the Incorporated
         Representations and Warranties) on each such date;

                  (b) the performance by the parties to this Agreement of their
         respective agreements contained herein and in the other Operative
         Agreements to be performed by them on or prior to each such date;

                  (c) the Agent shall have received a fully executed counterpart
         copy of the Requisition, appropriately completed;

                  (d) title to each such Property shall conform to the
         representations and warranties set forth in Section 6.2(l) hereof;

                  (e) the Construction Agent shall have delivered to the Agent a
         good standing certificate for the Construction Agent in the state where
         each such Property is located, the Deed with respect to the Land and
         existing Improvements (if any), a copy of the Ground Lease (if any),
         and a copy of the Bill of Sale with respect to the Equipment (if any),
         respecting such of the foregoing as are being acquired or ground leased
         on each such date with the proceeds of the Loans and Holder Advances or
         which have been previously acquired or ground leased with the proceeds
         of the Loans and Holder Advances and such Land, existing Improvements
         (if any) and Equipment (if any) shall be located in an Approved State;

                  (f) there shall not have occurred and be continuing any
         Default or Event of Default under any of the Operative Agreements and
         no Default or Event of Default under any of the Operative Agreements
         will have occurred after giving effect to the Advance requested by each
         such Requisition;

                  (g) the Construction Agent shall have delivered to the Agent
         title insurance commitments to issue policies respecting each such
         Property, with such endorsements as the Agent deems necessary, in favor
         of the Lessor and the Agent from a title insurance company acceptable
         to the Agent, but only with such title exceptions thereto as are
         acceptable to the Agent;

                  (h) the Construction Agent shall have delivered to the Agent
         an environmental site assessment respecting each such Property prepared
         by an independent recognized professional acceptable to the Agent and
         evidencing no pre-existing environmental condition with respect to
         which there is more than a remote risk of loss;

                  (i) the Construction Agent shall have delivered to the Agent a
         survey (with a flood hazard certification) respecting each such
         Property prepared (i) by an independent recognized professional
         acceptable to the Agent and (ii) in a manner and including such
         information as is required by the Agent;

                                       7
<PAGE>

                  (j) unless such an opinion has previously been delivered with
         respect to a particular state, the Construction Agent shall have caused
         to be delivered to the Agent a legal opinion in the form attached
         hereto as EXHIBIT B or in such other form as is acceptable to the Agent
         with respect to local law real property issues respecting the state in
         which each such Property is located addressed to the Lessor, the Agent,
         the Lenders and the Holders, from counsel located in the state where
         each such Property is located, prepared by counsel acceptable to the
         Agent;

                  (k) the Agent shall be satisfied that the acquisition, ground
         leasing and/or holding of each such Property and the execution of the
         Mortgage Instrument and the other Security Documents will not
         materially and adversely affect the rights of the Lessor, the Agent,
         the Holders or the Lenders under or with respect to the Operative
         Agreements;

                  (l) the Construction Agent shall have delivered to the Agent
         invoices for, or other reasonably satisfactory evidence of, the various
         Transaction Expenses and other fees, expenses and disbursements
         referenced in Sections 7.1(a) or 7.1(b) of this Agreement, as
         appropriate;

                  (m) the Construction Agent shall have caused to be delivered
         to the Agent a Mortgage Instrument (in such form as is acceptable to
         the Agent, with revisions as necessary to conform to applicable state
         law), Lessor Financing Statements and Lender Financing Statements
         respecting each such Property, all fully executed and in recordable
         form;

                  (n) the Lessee shall have delivered to the Agent with respect
         to each such Property a Lease Supplement and a memorandum (or short
         form lease) regarding the Lease and such Lease Supplement (such
         memorandum or short form lease to be in the form attached to the Lease
         as EXHIBIT B or in such other form as is acceptable to the Agent, with
         modifications as necessary to conform to applicable state law, and in
         form suitable for recording);

                  (o) with respect to each Acquisition Advance, the sum of the
         Available Commitment plus the Available Holder Commitment (after
         deducting the Unfunded Amount, if any, and after giving effect to the
         Acquisition Advance) will be sufficient to pay all amounts payable
         therefrom;

                                       8
<PAGE>

                  (p) if any such Property is subject to a Ground Lease, the
         Construction Agent shall have caused a lease memorandum (or short form
         lease) to be delivered to the Agent for such Ground Lease and, if
         requested by the Agent, a landlord waiver and a mortgagee waiver (in
         each case, in such form as is acceptable to the Agent);

                  (q) counsel (acceptable to the Agent) for the ground lessor of
         each such Property subject to a Ground Lease shall have issued to the
         Lessor, the Agent, the Lenders and the Holders, its opinion;

                  (r) the Construction Agent shall have delivered to the Agent a
         preliminary Construction Budget for each such Property, if applicable;

                  (s) the Construction Agent shall have provided evidence to the
         Agent of insurance that is required to be maintained with respect to
         each such Property as provided in the Lease;

                  (t) the Construction Agent shall have caused an Appraisal
         regarding each such Property to be provided to the Agent from an
         appraiser satisfactory to the Agent, and no Lender nor any Holder shall
         have provided the Agent written notice that such Appraisal is
         unsatisfactory;

                  (u) the Construction Agent shall cause (i) Uniform Commercial
         Code lien searches, tax lien searches and judgment lien searches
         regarding the Lessee to be conducted (and copies thereof to be
         delivered to the Agent) in such jurisdictions as determined by the
         Agent by a nationally recognized search company acceptable to the Agent
         and (ii) the liens referenced in such lien searches which are
         objectionable to the Agent to be either removed or otherwise handled in
         a manner satisfactory to the Agent;

                  (v) all taxes, fees and other charges in connection with the
         execution, delivery, recording, filing and registration of the
         Operative Agreements and/or documents related thereto shall have been
         paid or provisions for such payment shall have been made to the
         satisfaction of the Agent, including without limitation the provisions
         of Section 5.14;

                  (w) in the opinion of the Agent and its respective counsel,
         the transactions contemplated by the Operative Agreements do not and
         will not subject the Lessor, the Lenders, the Agent or the Holders to
         any adverse regulatory prohibitions, constraints, penalties or fines;

                  (x) each of the Operative Agreements to be entered into on
         such date shall have been duly authorized, executed and delivered by
         the parties thereto, and shall be in full force and effect, and the
         Agent shall have received a fully executed copy of each of the
         Operative Agreements;

                  (y) since the date of the most recent audited financial
         statements (as delivered pursuant to the requirements of the Parent
         Credit Agreement) of the Guarantor, there shall not have occurred any
         event, condition or state of facts which shall have or could reasonably
         be expected to have a Material Adverse Effect, other than as
         specifically contemplated by the Operative Agreements;

                                       9
<PAGE>

                  (z) as of the Initial Closing Date only, the Agent shall have
         received an Officer's Certificate, dated as of the Initial Closing
         Date, of the Lessee and each other Credit Party in the form attached
         hereto as EXHIBIT C or in such other form as is acceptable to the Agent
         stating that (i) each and every representation and warranty of such
         Credit Party contained in the Operative Agreements to which it is a
         party is true and correct on and as of the Initial Closing Date; (ii)
         no Default or Event of Default has occurred and is continuing under any
         Operative Agreement; (iii) each Operative Agreement to which such
         Credit Party is a party is in full force and effect with respect to it;
         and (iv) such Credit Party has duly performed and complied with all
         covenants, agreements and conditions contained herein or in any
         Operative Agreement required to be performed or complied with by it on
         or prior to the Initial Closing Date;

                  (aa) as of the Initial Closing Date only, the Agent shall have
         received (i) a certificate of the Secretary or an Assistant Secretary
         of each Credit Party, dated as of the Initial Closing Date, in the form
         attached hereto as EXHIBIT D or in such other form as is acceptable to
         the Agent attaching and certifying as to (1) the resolutions of the
         Board of Directors of such Credit Party duly authorizing the execution,
         delivery and performance by such Credit Party of each of the Operative
         Agreements to which it is or will be a party, (2) the articles of
         incorporation of such Credit Party certified as of a recent date by the
         Secretary of State of its state of incorporation and its by-laws and
         (3) the incumbency and signature of persons authorized to execute and
         deliver on behalf of such Credit Party the Operative Agreements to
         which it is or will be a party and (ii) a good standing certificate (or
         local equivalent) from the respective states where such Credit Party is
         incorporated and where the principal place of business of such Credit
         Party is located as to its good standing in each such state. To the
         extent any Credit Party is a partnership, a limited liability company
         or is otherwise organized, such Person shall deliver to the Agent (in
         form and substance satisfactory to the Agent) as of the Initial Closing
         Date (A) a certificate regarding such Person and any corporate general
         partners covering the matters described in EXHIBIT D and (B) a good
         standing certificate, a certificate of limited partnership or a local
         equivalent of either the foregoing as applicable;

                  (bb) as of the Initial Closing Date only, there shall not have
         occurred any material adverse change in the consolidated assets,
         liabilities, operations, business or condition (financial or otherwise)
         of the Credit Parties (on a consolidated basis) from that set forth in
         the most recent audited consolidated financial statements of the
         Guarantor which have been provided to the Agent;

                                       10
<PAGE>

                  (cc) as of the Initial Closing Date only, the Agent shall have
         received an Officer's Certificate of the Lessor dated as of the Initial
         Closing Date in the form attached hereto as EXHIBIT E or in such other
         form as is acceptable to the Agent, stating that (i) each and every
         representation and warranty of the Lessor contained in the Operative
         Agreements to which it is a party is true and correct on and as of the
         Initial Closing Date, (ii) each Operative Agreement to which the Lessor
         is a party is in full force and effect with respect to it and (iii) the
         Lessor has duly performed and complied with all covenants, agreements
         and conditions contained herein or in any Operative Agreement required
         to be performed or complied with by it on or prior to the Initial
         Closing Date;

                  (dd) as of the Initial Closing Date only, the Agent shall have
         received (i) a certificate of the Secretary, an Assistant Secretary,
         Trust Officer or Vice President of the Trust Company in the form
         attached hereto as EXHIBIT F or in such other form as is acceptable to
         the Agent, attaching and certifying as to (A) the signing resolutions
         duly authorizing the execution, delivery and performance by the Lessor
         of each of the Operative Agreements to which it is or will be a party,
         (B) its articles of association or other equivalent charter documents
         and its by-laws, as the case may be, certified as of a recent date by
         an appropriate officer of the Trust Company and (C) the incumbency and
         signature of persons authorized to execute and deliver, on the Lessor's
         behalf, the Operative Agreements to which such entity is a party and
         (ii) a good standing certificate from the Office of the Comptroller of
         the Currency;

                  (ee) as of the Initial Closing Date only, counsel for the
         Lessor acceptable to the Agent shall have issued to the Lessee, the
         Holders, the Lenders and the Agent its opinion in the form attached
         hereto as EXHIBIT G or in such other form as is reasonably acceptable
         to the Agent;

                  (ff) as of the Initial Closing Date only, the Construction
         Agent shall have caused to be delivered to the Agent a legal opinion in
         the form attached hereto as EXHIBIT H or in such other form as is
         acceptable to the Agent, addressed to the Lessor, the Agent, the
         Lenders and the Holders, from counsel acceptable to the Agent;

                  (gg) as of the Initial Closing Date only, the Construction
         Agent shall cause (i) tax lien searches and judgment lien searches
         regarding each Credit Party to be conducted (and copies thereof to be
         delivered to the Agent) in such jurisdictions as determined by the
         Agent by a nationally recognized search company acceptable to the Agent
         and (ii) the liens referenced in such lien searches which are
         objectionable to the Agent to be either removed or otherwise handled in
         a manner satisfactory to the Agent;

                  (hh) the Construction Agent shall have deposited good and
         immediately available Dollars into the Cash Collateral Account in a
         sufficient amount so that after giving effect to the requested Advance
         the Construction Agent is in compliance with Section 5.11 hereof;

                  (ii) except with respect to the Property ground leased on the
         Initial Closing Date, the Agent shall have received written approval
         regarding each subsequent Property, prior to the acquisition or ground
         leasing thereof by the Lessor, from each Lender and each Holder; and

                                       11
<PAGE>

                  (jj) the Lessee shall have complied with the provisions of
         Section 5.11 and the terms and conditions of the Cash Collateral
         Agreement and the Control Agreement.

         5.4.     CONDITIONS PRECEDENT FOR THE LESSOR, THE AGENT, THE LENDERS
                  -----------------------------------------------------------
                  AND THE HOLDERS RELATING TO THE ADVANCE OF FUNDS AFTER THE
                  ----------------------------------------------------------
                  ACQUISITION ADVANCE.
                  -------------------

         The obligations of the Holders to make Holder Advances, and the Lenders
to make Loans in connection with all requests for Advances subsequent to the
acquisition of a Property (and to pay the Transaction Expenses, fees, expenses
and other disbursements payable by the Lessor under Section 7.1 of this
Agreement in connection therewith) are subject to the satisfaction or waiver of
the following conditions precedent (to the extent such conditions precedent
require the delivery of any agreement, certificate, instrument, memorandum,
legal or other opinion, appraisal, commitment, title insurance commitment, lien
report or any other document of any kind or type, such shall be in form and
substance satisfactory to the Agent, in its reasonable discretion;
notwithstanding the foregoing, the obligations of each party shall not be
subject to any conditions contained in this Section 5.4 which are required to be
performed by such party):

                  (a) the correctness on such date of the representations and
         warranties of the parties to this Agreement contained herein, in each
         of the other Operative Agreements and in each certificate delivered
         pursuant to any Operative Agreement (including without limitation the
         Incorporated Representations and Warranties);

                  (b) the performance by the parties to this Agreement of their
         respective agreements contained herein and in the other Operative
         Agreements to be performed by them on or prior to each such date;

                  (c) the Agent shall have received a fully executed counterpart
         of the Requisition, appropriately completed;

                  (d) based upon the applicable Construction Budget which shall
         satisfy the requirements of this Agreement, the Available Commitments
         and the Available Holder Commitment (after deducting the Unfunded
         Amount) will be sufficient to complete the Improvements;

                  (e) there shall not have occurred and be continuing any
         Default or Event of Default under any of the Operative Agreements and
         no Default or Event of Default under any of the Operative Agreements
         will have occurred after giving effect to the Construction Advance
         requested by the applicable Requisition;

                  (f) the title insurance policy delivered in connection with
         the requirements of Section 5.3(g) shall provide for (or shall be
         endorsed to provide for) insurance in an amount at least equal to the
         maximum total Property Cost indicated by the Construction Budget
         referred to in subparagraph (d) above and there shall be no title
         change or exception objectionable to the Agent;

                                       12
<PAGE>

                  (g) the Construction Agent shall have delivered to the Agent
         copies of the Plans and Specifications for the applicable Improvements;

                  (h) the Construction Agent shall have delivered to the Agent
         invoices for, or other reasonably satisfactory evidence of, any
         Transaction Expenses and other fees, expenses and disbursements
         referenced in Section 7.1(b) that are to be paid with the Advance;

                  (i) the Construction Agent shall have delivered, or caused to
         be delivered to the Agent, invoices, Bills of Sale or other documents
         acceptable to the Agent, in each case with regard to any Equipment or
         other components of such Property then being acquired with the proceeds
         of the Loans and Holder Advances and naming the Lessor as purchaser and
         transferee;

                  (j) all taxes, fees and other charges in connection with the
         execution, delivery, recording, filing and registration of the
         Operative Agreements shall have been paid or provisions for such
         payment shall have been made to the satisfaction of the Agent;

                  (k)      [Intentionally Omitted];

                  (l) the Lessee shall have complied with the provisions of
         Section 5.11 and the term and conditions of the Cash Collateral
         Agreement and the Control Agreement; and

                  (m) the Construction Agent shall have deposited good and
         immediately available Dollars into the Cash Collateral Account in a
         sufficient amount so that after giving effect to the requested Advance
         the Construction Agent is in compliance with Section 5.11 hereof.

         5.5.     ADDITIONAL REPORTING AND DELIVERY REQUIREMENTS ON COMPLETION
                  ------------------------------------------------------------
                  DATE AND ON CONSTRUCTION PERIOD TERMINATION DATE.
                  ------------------------------------------------

         On or prior to the Completion Date for each Property, the Construction
Agent shall deliver to the Agent an Officer's Certificate in the form attached
hereto as EXHIBIT I or in such other form as is acceptable to the Agent
specifying (a) the address for such Property, (b) the Completion Date for such
Property, (c) the aggregate Property Cost for such Property, (d) detailed,
itemized documentation supporting the asserted Property Cost figures and (e)
that all representations and warranties of the Construction Agent and Lessee in
each of the Operative Agreements and each certificate delivered pursuant thereto
(including without limitation the Incorporated Representations and Warranties)
are true and correct as of the Completion Date. The Agent shall have the right
to contest the information contained in such Officer's Certificate. Furthermore,
on or prior to the Completion Date for each Property, the Construction Agent
shall deliver or cause to be delivered to the Agent (unless previously delivered
to the Agent) originals of the following, each of which shall be in form and
substance acceptable to the Agent, in its reasonable discretion: (v) a title
insurance endorsement regarding the title insurance policy delivered in
connection with the requirements of Section 5.3(g), but only to the extent such

                                       13
<PAGE>

endorsement is necessary to provide for insurance in an amount at least equal to
the maximum total Property Cost and, if endorsed, the endorsement shall not
include a title change or exception objectionable to the Agent; (w) an as-built
survey for such Property, (x) insurance certificates respecting such Property as
required hereunder and under the Lease Agreement, (y) if requested by the Agent,
amendments to the Lessor Financing Statements executed by the appropriate
parties and (z) an Appraisal regarding such Property. In addition, on the
Completion Date for such Property the Construction Agent covenants and agrees
that the recording fees, documentary stamp taxes or similar amounts required to
be paid in connection with the related Mortgage Instrument shall have been paid
in an amount required by applicable law, subject, however, to the obligations of
the Lenders and the Holders to fund such costs to the extent required pursuant
to Section 7.1.

         5.6.     THE CONSTRUCTION AGENT DELIVERY OF CONSTRUCTION BUDGET
                  ------------------------------------------------------
                  MODIFICATIONS.
                  -------------

         The Construction Agent covenants and agrees to deliver to the Agent
each month notification of any modification to any Construction Budget regarding
any Property if such modification increases the cost to construct such Property
beyond the projected cost of the Construction Budget delivered to the Agent
regarding such Property; provided no Construction Budget may be increased unless
(a) the title insurance policies referenced in Section 5.3(g) are also modified
or endorsed, if necessary, to provide for insurance in an amount that satisfies
the requirements of Section 5.4(f) of this Agreement and (b) after giving effect
to any such amendment, the Construction Budget remains in compliance with the
requirements of Section 5.4(d) of this Agreement.

         5.7.     RESTRICTIONS ON LIENS.
                  ---------------------

         On each Property Closing Date, the Construction Agent shall cause each
Property acquired by the Lessor on such date to be free and clear of all Liens
except those referenced in Sections 6.2(r)(i) and 6.2(r)(ii). On each date a
Property is either sold to a third party in accordance with the terms of the
Operative Agreements or, pursuant to Section 22.1(a) of the Lease Agreement,
retained by the Lessor, the Lessee shall cause such Property to be free and
clear of all Liens (other than Lessor Liens and such other Liens that are
expressly set forth as title exceptions on the title commitment issued under
Section 5.3(g) with respect to such Property, to the extent such title
commitment has been approved by the Agent).

         5.8.     [INTENTIONALLY OMITTED].
                  -----------------------

         5.9.     MAINTENANCE OF THE LESSEE AS A WHOLLY-OWNED ENTITY.
                  --------------------------------------------------

         From the Initial Closing Date and thereafter until such time as all
obligations of all Credit Parties under the Operative Agreements have been
satisfied and performed in full, the Parent shall retain the Lessee as a
Wholly-Owned Entity.

                                       14
<PAGE>

         5.10.    PAYMENTS.
                  --------

         All payments of principal, interest, Holder Advances, Holder Yield and
other amounts to be made by the Construction Agent or the Lessee under this
Agreement or any other Operative Agreements (excluding Excepted Payments which
shall be paid directly to the party to whom such payments are owed) shall be
made to the Agent at the office designated by the Agent from time to time in
Dollars and in immediately available funds, without setoff, deduction, or
counterclaim. Subject to the definition of "Interest Period" in Appendix A
attached hereto, whenever any payment under this Agreement or any other
Operative Agreements shall be stated to be due on a day that is not a Business
Day, such payment may be made on the next succeeding Business Day, and such
extension of time in such case shall be included in the computation of interest,
Holder Yield and fees payable pursuant to the Operative Agreements, as
applicable and as the case may be.

         5.11.    CASH COLLATERAL ACCOUNT.
                  -----------------------

         Prior to the funding of any Advances which in the aggregate, including
all prior Advances, exceed $60,000,000, (a) the Agent shall have received (i)
signature pages from each party to the Cash Collateral Agreement and the Control
Agreement which such agreements shall be in full force and effect and in form
and substance acceptable to the Agent, (b) counsel for the Cash Collateral
Possessor acceptable to the Agent shall have issued to the Lessee, the Holders,
the Lenders and the Agent its opinion in form and substance as is acceptable to
the Agent, (c) the Agent shall have received (i) a certificate of the Secretary,
an Assistant Secretary or Vice President of the Cash Collateral Possessor in
such form that is acceptable to the Agent, attaching and certifying as to (A)
the signing resolutions duly authorizing the execution, delivery and performance
by the Cash Collateral Possessor of each of the Operative Agreements to which it
is or will be a party, (B) its articles of association or other equivalent
charter documents and its by-laws certified as of a recent date by an
appropriate officer of the Cash Collateral Possessor and (C) the incumbency and
signature of persons authorized to execute and deliver, on the Cash Collateral
Possessor's behalf, the Operative Agreements to which such entity is a party and
(ii) a good standing certificate from the Office of the Comptroller of the
Currency or the jurisdiction of organization and (d) such other documentation
related to the Cash Collateral Account as required by the Operative Agreements
or otherwise requested by the Agent. The Construction Agent shall make cash
deposits in good and immediately available Dollars into the Cash Collateral
Account from time to time so that at all times during the Term, the amount on
deposit in the Cash Collateral Account equals or exceeds the sum of aggregate
Property Cost for all of the Properties, all Advances made but not yet expended
with respect to a Property and all amounts described in a Requisition not yet
funded, less sixty million dollars ($60,000,000). All amounts in the Cash
Collateral Account shall be held as cash or investments described in Exhibit A
to the Cash Collateral Agreement and otherwise in accordance with the terms and
conditions of the Cash Collateral Agreement.

                                       15
<PAGE>

         5.12.    [INTENTIONALLY OMITTED].
                  -----------------------

         5.13.    SPECIAL PROVISION REGARDING RENEWAL TERM.
                  ----------------------------------------

         No Renewal Term shall be effective unless agreed to by each Financing
Party, as applicable, in accordance with Section 2.2 of the Lease.

         5.14.    SPECIAL PROVISION REGARDING MORTGAGE TAX.
                  ----------------------------------------

         On or prior to the Initial Closing Date, (a) the Lessee shall cause the
mortgage recording tax to be paid pursuant to the requirements of the applicable
Laws and (b) the Lessee shall cause to be delivered to the Agent an amount equal
to the product of (i) the mortgage tax rate applicable to the Digital Hospital
Property and (ii) the difference between (A) the aggregate Commitments and
Holder Commitments less (B) the portion of the Commitments and Holder
Commitments upon which the recording mortgage tax was paid pursuant to
subsection (a) above. The Agent shall hold such amount delivered pursuant to
subsection (b) which may be applied to the mortgage recording tax as the Agent
determines, including without limitation payment of the mortgage recording tax
with respect to the Digital Hospital Property prior to such amount being due.

         5.15.    AVAILABILITY OF ADVANCES FOR LESSEE AND CONSTRUCTION AGENT
                  ----------------------------------------------------------
                  OBLIGATIONS.
                  -----------

         Solely with respect to each Construction Period Property, amounts to be
paid by the Lessee or the Construction Agent pursuant to the Operative
Agreements may be funded with Advances to the extent the terms and conditions of
the Operative Agreements applicable to Advances have been satisfied or waived
pursuant to the terms therein (including without limitation the conditions
precedent contained in Sections 5.3 and 5.4); provided, however, no Advances may
be applied to (a) amounts owed under any Operative Agreement or with respect to
any Property, including without limitation Construction Period Properties, which
relate to environmental matters, Environmental Claims or Environmental
Violations, including without limitation payments pursuant to Section 11.6,
fines and settlements regarding such environmental matters and any remediation
and cleanup cost required to be paid pursuant to Section 15.2 of the Lease or
(b) amounts owed to the Owner Trustee pursuant to Sections 11.1, 11.2, 11.3,
11.4, 11.5, 11.6 or 11.7 hereof.

         5.16.    CONSTRUCTION OF TRANSACTION.

         Each of the Financing Parties and each of the Credit Parties
acknowledge and agree that each intends the transactions contemplated pursuant
to the Operative Agreements to be treated as interstate commerce under all Laws
applicable thereto.

         5.17.    PAYMENT OF GROUND LEASE RENT.

         Solely with respect to each Construction Period Property which is
subject to a Ground Lease, amounts to be paid as scheduled rental payments
thereunder may be funded with Advances to the extent the terms and conditions of
the Operative Agreements applicable to Advances have been satisfied or waived
pursuant to the terms therein (including without limitation the conditions
precedent contained in Sections 5.3 and 5.4).

                                       16
<PAGE>

         5.18.    FORCE MAJEURE.

         Upon the occurrence of a Force Majeure Event with respect to a
Construction Period Property and unless the Construction Agent shall have
previously purchased the Construction Period Property for the Termination Value,
the Lessor (at the direction of the Majority Secured Parties, regarding the
election of (a) or (c) below, and as a Unanimous Vote Matter, regarding the
election of (b) below), may elect any of the following:

                  (a) to direct the Construction Agent to restore such
         Construction Period Property with insurance proceeds paid with respect
         to such Force Majeure Event and in the event such proceeds are
         insufficient to restore such Construction Period Property to the
         condition of such Construction Period Property immediately prior to the
         occurrence of such Force Majeure Event, then the remaining portion of
         such restoration shall be funded with Advances to the extent the terms
         and conditions of the Operative Agreements applicable to Advances have
         been satisfied or waived pursuant to the terms in the Participation
         Agreement (including without limitation the conditions precedent
         contained in Sections 5.3 and 5.4), provided, for each month in which
         such Force Majeure Event has occurred and is continuing and such Force
         Majeure Event prevents the Construction Agent from continuing any work
         on such Construction Period Property, the maximum length of the
         Construction Period Termination Date with respect to such Construction
         Period Property shall be extended one month, but in no event shall the
         Construction Period Termination Date be extended beyond the third
         anniversary of the Initial Closing Date;

                  (b) to terminate the Agency Agreement and the Lease Agreement
         with respect to such Construction Period Property and thereafter the
         Construction Agent shall have no further obligations under the Agency
         Agreement or the Lease Agreement with respect to such Construction
         Period Property, except with respect to (i) indemnity obligations
         pursuant to Sections 11.1 through 11.7 of this Agreement and then only
         with respect to matters which have occurred or commenced on or prior to
         the date of such termination of the Agency Agreement and the Lease
         Agreement and (ii) all Full Recourse Events of Default; or

                  (c) subject to the terms and conditions of the Operative
         Agreements, to replace the Land and relocate the Improvements
         comprising such Construction Period Property and/or modify the Plans
         and Specifications and the Construction Budget for such Construction
         Period Property and/or inform the Construction Agent that the
         Construction Agent no longer has the right to modify the Plans and
         Specifications or the Construction Budget for such Construction Period
         Property, in each case in Lessor's sole discretion; provided, upon
         Completion of any such replacement Property, such replacement Property
         shall have a use, function and capacity substantially similar to the
         use, function and capacity of such replaced Property.

                                       17
<PAGE>

                  Upon the termination of the Agency Agreement and the Lease
         Agreement as referenced in Section 5.18(b), the Construction Agent
         shall vacate such Construction Period Property, and neither the
         Construction Agent nor the Lessee shall retain any right, title or
         interest in such Construction Period Property. Thereafter, the
         Financing Parties shall be permitted to retain any and all proceeds
         related to or subsequently generated from their respective interests in
         such Construction Period Property (including without limitation 100% of
         all amounts owed to the Financing Parties in accordance with the
         Operative Agreements).

5.19.    ACCRUAL OF INTEREST AND HOLDER YIELD REGARDING EXCLUDED COSTS.
         -------------------------------------------------------------

         Notwithstanding any other provision of any Operative Agreement,
interest on the Loans and Holder Yield on the Holder Advances (in each case,
only to the extent such were used to fund Excluded Costs) shall, prior to the
Maturity Date, accrue (a) on each Scheduled Interest Payment Date and (b)
monthly after the Expiration Date; provided, all such accrued amounts shall be
capitalized and added to the Loans and Holder Advances and shall constitute a
component of Property Cost.

                   SECTION 6. REPRESENTATIONS AND WARRANTIES.

         6.1.     REPRESENTATIONS AND WARRANTIES OF THE BORROWER.

         Effective as of the Initial Closing Date and the date of each Advance,
the Trust Company in its individual capacity and as the Borrower, as indicated,
represents and warrants to each of the other parties hereto as follows,
provided, that the representations in the following paragraphs (c), (g), (h),
(j) and (k) are made solely in its capacity as the Borrower:

                  (a) It is a national banking association and is duly organized
         and validly existing and in good standing under the laws of the United
         States of America and has the power and authority to enter into and
         perform its obligations under the Trust Agreement and (assuming due
         authorization, execution and delivery of the Trust Agreement by the
         Holders) has the corporate and trust power and authority to act as the
         Owner Trustee and to enter into and perform the obligations under each
         of the other Operative Agreements to which the Trust Company or the
         Owner Trustee, as the case may be, is or will be a party and each other
         agreement, instrument and document to be executed and delivered by it
         on or before such Closing Date in connection with or as contemplated by
         each such Operative Agreement to which the Trust Company or the Owner
         Trustee, as the case may be, is or will be a party;

                  (b) The execution, delivery and performance of each Operative
         Agreement to which it is or will be a party, either in its individual
         capacity or (assuming due authorization, execution and delivery of the
         Trust Agreement by the Holders) as the Owner Trustee, as the case may
         be, has been duly authorized by all necessary action on its part and
         neither the execution and delivery thereof, nor the consummation of the
         transactions contemplated thereby, nor compliance by it with any of the
         terms and provisions thereof (i) does or will require any approval or
         consent of any trustee or holders of any of its indebtedness or
         obligations, (ii) does or will contravene any federal or Connecticut
         Legal Requirement relating to its banking or trust powers, (iii) does
         or will contravene or result in any breach of or constitute any default

                                       18
<PAGE>

         under, or result in the creation of any Lien upon any of its property
         under, (A) its charter or by-laws, or (B) any indenture, mortgage,
         chattel mortgage, deed of trust, conditional sales contract, bank loan
         or credit agreement or other agreement or instrument to which it is a
         party or by which it or its properties may be bound or affected, which
         contravention, breach, default or Lien under clause (B) would
         materially and adversely affect its ability, in its individual capacity
         or as the Owner Trustee, to perform its obligations under the Operative
         Agreements to which it is a party or (iv) does or will require any
         Governmental Action by any federal or Connecticut Governmental
         Authority regulating its banking or trust powers;

                  (c) The Trust Agreement and, assuming the Trust Agreement is
         the legal, valid and binding obligation of the Holders, each other
         Operative Agreement to which the Trust Company or the Owner Trustee, as
         the case may be, is or will be a party have been, or on or before such
         Closing Date will be, duly executed and delivered by the Trust Company
         or the Owner Trustee, as the case may be, and the Trust Agreement and
         each such other Operative Agreement to which the Trust Company is a
         party constitutes, or upon execution and delivery will constitute, a
         legal, valid and binding obligation enforceable against the Trust
         Company in accordance with the terms thereof. The Trust Agreement and
         each other Operative Agreement to which the Owner Trustee is a party
         constitutes, or upon execution and delivery will constitute, a legal,
         valid and binding obligation enforceable against the Owner Trustee, in
         accordance with the terms thereof;

                  (d) There is no action or proceeding pending or, to its
         knowledge, threatened to which it is or will be a party, either in its
         individual capacity or as the Owner Trustee, before any Governmental
         Authority that, if adversely determined, would materially and adversely
         affect its ability, in its individual capacity or as the Owner Trustee,
         to perform its obligations under the Operative Agreements to which it
         is a party or would question the validity or enforceability of any of
         the Operative Agreements to which it is or will become a party;

                  (e) It, either in its individual capacity or as the Owner
         Trustee, has not assigned or transferred any of its right, title or
         interest in or under the Lease, the Agency Agreement or its interest in
         any Property or any portion thereof, except in accordance with the
         Operative Agreements;

                  (f) No Default or Event of Default under the Operative
         Agreements attributable to it has occurred and is continuing;

                  (g) Except as otherwise contemplated in the Operative
         Agreements, the proceeds of the Loans and Holder Advances shall not be
         applied by the Owner Trustee, either in its individual capacity or as
         the Owner Trustee, for any purpose other than the purchase and/or lease
         of the Properties, the acquisition, installation and testing of the
         Equipment, the construction of Improvements and the payment of
         Transaction Expenses and the fees, expenses and other disbursements
         referenced in Sections 7.1(a) and 7.1(b) of this Agreement, in each
         case which accrue prior to the Rent Commencement Date with respect to a
         particular Property;

                                       19
<PAGE>

                  (h) Neither the Owner Trustee nor any Person authorized by the
         Owner Trustee to act on its behalf has offered or sold any interest in
         the Trust Estate or the Notes, or in any similar security relating to a
         Property, or in any security the offering of which for the purposes of
         the Securities Act would be deemed to be part of the same offering as
         the offering of the aforementioned securities to, or solicited any
         offer to acquire any of the same from, any Person other than, in the
         case of the Notes, the Agent, and neither the Owner Trustee nor any
         Person authorized by the Owner Trustee to act on its behalf will take
         any action which would subject, as a direct result of such action
         alone, the issuance or sale of any interest in the Trust Estate or the
         Notes to the provisions of Section 5 of the Securities Act or require
         the qualification of any Operative Agreement under the Trust Indenture
         Act of 1939, as amended;

                  (i) The Owner Trustee's principal place of business, chief
         executive office, location for purposes of the UCC, and office where
         the documents, accounts and records relating to the transactions
         contemplated by this Agreement and each other Operative Agreement are
         kept are located at 225 Asylum Street, Goodwin Square, Hartford,
         Connecticut 06103, Attention: Corporate Trust Department;

                  (j) The Owner Trustee is not engaged principally in, and does
         not have as one (1) of its important activities, the business of
         extending credit for the purpose of purchasing or carrying any margin
         stock (within the meaning of Regulation U of the Board of Governors of
         the Federal Reserve System of the United States), and no part of the
         proceeds of the Loans or the Holder Advances will be used by it to
         purchase or carry any margin stock or to extend credit to others for
         the purpose of purchasing or carrying any such margin stock or for any
         purpose that violates, or is inconsistent with, the provisions of
         Regulations T, U, or X of the Board of Governors of the Federal Reserve
         System of the United States;

                  (k) The Owner Trustee is not an "investment company" or a
         company controlled by an "investment company" within the meaning of the
         Investment Company Act;

                  (l) Each Property is free and clear of all Lessor Liens
         attributable to the Owner Trustee, either in its individual capacity or
         as the Owner Trustee;

                  (m) The Owner Trustee, in its trust capacity, is not a party
         to any documents, instruments or agreements other than the Operative
         Agreements executed by the Owner Trustee, in its trust capacity;

                  (n) The Owner Trustee is authorized to act in a fiduciary
         capacity in the State of Connecticut and under the laws of the United
         States;

                                       20
<PAGE>

                  (o) Any national association organized under the laws of the
         United States having its principal place of business in the State of
         Alabama which is authorized to act in a fiduciary capacity in the State
         of Alabama is authorized to act in a like fiduciary capacity in the
         State of Connecticut without the necessity of complying with any law of
         the State of Connecticut relating to the qualification of a foreign
         corporation in the State of Connecticut;

                  (p) The Owner Trustee (a) has not received written notice that
         it is currently excluded, debarred or otherwise ineligible to
         participate in the Federal healthcare programs or in the Federal
         procurement or non-procurement programs; and (b) has not been convicted
         of a criminal offense related to the provision of healthcare items or
         services; and

                  (q) The Trust Company has filed with the appropriate Alabama
         Govermental Authority the documents and other items required pursuant
         to Alabama Code Sections 10-2B-15.41 and 10-2B-15.42.

         6.2.     REPRESENTATIONS AND WARRANTIES OF EACH CREDIT PARTY.
                  ---------------------------------------------------

         Effective as of the Initial Closing Date, the date of each Advance and
the Rent Commencement Date, each Credit Party represents and warrants to each of
the other parties hereto that:

                  (a) The Incorporated Representations and Warranties are true
         and correct (unless such relate solely to an earlier point in time) and
         the Lessee has delivered to the Agent the financial statements and
         other reports referred to in Section 7.1 of the Parent Credit
         Agreement;

                  (b) (i) Each of the Construction Agent and the Lessee is a
         corporation duly organized and validly existing and in good standing
         under the laws of the State of Alabama and the Guarantor is a
         corporation duly organized and validly existing and in good standing
         under the laws of the State of Delaware and each Credit Party has the
         power and authority to enter into and perform its obligations under the
         Operative Agreements to which it is a party and has the corporate power
         and authority to act as the Construction Agent, the Lessee or the
         Guarantor, as the case may be, and to enter into and perform the
         obligations under each of the other Operative Agreements to which it is
         a party or will be a party and each other agreement, instrument and
         document to be executed and delivered by it on or before such date in
         connection with or as contemplated by each such Operative Agreement to
         which it is a party or will be a party;

                           (ii) The execution and delivery by each Credit Party
                  of this Agreement and the other applicable Operative
                  Agreements as of such date and the performance by each Credit
                  Party of its respective obligations under this Agreement and
                  the other applicable Operative Agreements are within the
                  corporate, partnership or limited liability company (as the
                  case may be) powers of each Credit Party, have been duly
                  authorized by all necessary corporate, partnership or limited
                  liability company (as the case may be) action on the part of

                                       21
<PAGE>

                  each Credit Party (including, without limitation, any
                  necessary shareholder action), have been duly executed and
                  delivered, have received all necessary governmental approval,
                  and do not and will not (A) violate any Legal Requirement
                  which is binding on any Credit Party or any of its
                  Subsidiaries, (B) contravene or conflict with, or result in a
                  breach of, any provision of the Articles of Incorporation,
                  By-Laws or other organizational documents of any Credit Party
                  or any of its Subsidiaries or of any agreement, indenture,
                  instrument or other document which is binding on any Credit
                  Party or any of its Subsidiaries or (C) result in, or require,
                  the creation or imposition of any Lien (other than pursuant to
                  the terms of the Operative Agreements) on any asset of any
                  Credit Party or any of its Subsidiaries;

                  (c) This Agreement and the other applicable Operative
         Agreements, executed prior to and as of such date by any Credit Party,
         constitute the legal, valid and binding obligation of such Credit
         Party, as applicable, enforceable against such Credit Party, as
         applicable, in accordance with their terms. Each Credit Party has
         executed the various Operative Agreements required to be executed by
         such Credit Party as of such date;

                  (d) Except as described on EXHIBIT K, there are no material
         actions, suits or proceedings pending or, to our knowledge, threatened
         against any Credit Party in any court or before any Governmental
         Authority (nor shall any order, judgment or decree have been issued or
         proposed to be issued by any Governmental Authority to set aside,
         restrain, enjoin or prevent the full performance of any Operative
         Agreement or any transaction contemplated thereby) that (i) concern any
         Property or any Credit Party's interest therein, (ii) question the
         validity or enforceability of any Operative Agreement to which any
         Credit Party is a party or the overall transaction described in the
         Operative Agreements to which any Credit Party is a party or (iii) have
         or could reasonably be expected to have a Material Adverse Effect;

                  (e) No Governmental Action by any Governmental Authority or
         other authorization, registration, consent, approval, waiver, notice or
         other action by, to or of any other Person pursuant to any Legal
         Requirement, contract, indenture, instrument or agreement or for any
         other reason is required to authorize or is required in connection with
         (i) the execution, delivery or performance of any Operative Agreement,
         (ii) the legality, validity, binding effect or enforceability of any
         Operative Agreement, (iii) the acquisition, ownership, construction,
         completion, occupancy, operation, leasing or subleasing of any Property
         or (iv) any Advance, in each case, except those which have been
         obtained and are in full force and effect;

                  (f) Upon the execution and delivery of each Lease Supplement
         to the Lease, (i) the Lessee will have unconditionally accepted the
         Property subject to the Lease Supplement and will have a valid and
         subsisting leasehold interest in such Property, subject only to the
         Permitted Liens, and (ii) no offset will exist with respect to any Rent
         or other sums payable under the Lease;

                                       22
<PAGE>

                  (g) Except as otherwise contemplated by the Operative
         Agreements, the Construction Agent shall not use the proceeds of any
         Holder Advance or Loan for any purpose other than the purchase and/or
         lease of the Properties, the acquisition, installation and testing of
         the Equipment, the construction of Improvements and the payment of
         Transaction Expenses and the fees, expenses and other disbursements
         referenced in Sections 7.1(a) and 7.1(b) of this Agreement, in each
         case which accrue prior to the Rent Commencement Date with respect to a
         particular Property;

                  (h) All information heretofore or contemporaneously herewith
         furnished by each Credit Party or its Subsidiaries to the Agent, the
         Owner Trustee, any Lender or any Holder for purposes of or in
         connection with this Agreement and the transactions contemplated hereby
         is, and all information hereafter furnished by or on behalf of each
         Credit Party or its Subsidiaries to the Agent, the Owner Trustee, any
         Lender or any Holder pursuant hereto or in connection herewith will be,
         true and accurate in every material respect on the date as of which
         such information is dated or certified, and such information, taken as
         a whole, does not and will not omit to state any material fact
         necessary to make such information, taken as a whole, not misleading;

                  (i) The location of the Construction Agent and the Lessee for
         purposes of the UCC is One HealthSouth Parkway, Birmingham, Alabama
         35243. The principal place of business, chief executive office and
         office of the Construction Agent, the Lessee and the Guarantor where
         the documents, accounts and records relating to the transactions
         contemplated by this Agreement and each other Operative Agreement are
         kept are located at One HealthSouth Parkway, Birmingham, Alabama 35243;

                  (j) The representations and warranties of each Credit Party
         set forth in any of the Operative Agreements are true and correct in
         all material respects on and as of each such date as if made on and as
         of such date. Each Credit Party is in all material respects in
         compliance with its obligations under the Operative Agreements and
         there exists no Default or Event of Default under any of the Operative
         Agreements which is continuing and which has not been cured within any
         cure period expressly granted under the terms of the applicable
         Operative Agreement or otherwise waived in accordance with the
         applicable Operative Agreement. No Default or Event of Default will
         occur under any of the Operative Agreements as a result of, or after
         giving effect to, the Advance requested by the Requisition on the date
         of each Advance;

                  (k) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, each Property
         then being financed consists of (i) unimproved Land or (ii) Land and
         existing Improvements thereon which Improvements are either suitable
         for occupancy at the time of acquisition or ground leasing or will be
         renovated and/or modified in accordance with the terms of this
         Agreement. Each Property then being financed is located at the location
         set forth on the applicable Requisition, each of which is in one (1) of
         the Approved States;

                                       23
<PAGE>

                  (l) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, the Lessor has
         good and marketable fee simple title to each Property, or, if any
         Property is the subject of a Ground Lease, the Lessor will have a valid
         ground leasehold interest enforceable against the ground lessor of such
         Property in accordance with the terms of such Ground Lease, subject
         only to (i) such Liens referenced in Sections 6.2(r)(i) and 6.2(r)(ii)
         on the applicable Property Closing Date and (ii) subject to Section
         5.7, Permitted Liens after the applicable Property Closing Date;

                  (m) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, no portion of
         any Property is located in an area identified as a special flood hazard
         area by the Federal Emergency Management Agency or other applicable
         agency, or if any such Property is located in an area identified as a
         special flood hazard area by the Federal Emergency Management Agency or
         other applicable agency, then flood insurance has been obtained for
         such Property in accordance with Section 14.2(b) of the Lease and in
         accordance with the National Flood Insurance Act of 1968, as amended;

                  (n) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, each Property
         complies with all Insurance Requirements and all standards of Lessee
         with respect to similar properties owned by Lessee;

                  (o) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, each Property
         complies with all Legal Requirements as of such date (including without
         limitation all zoning and land use laws and Environmental Laws), except
         to the extent that failure to comply therewith, individually or in the
         aggregate, shall not have and could not reasonably be expected to have
         a Material Adverse Effect;

                  (p) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, all utility
         services and facilities necessary for the construction and operation of
         the Improvements and the installation and operation of the Equipment
         regarding each Property (including without limitation gas, electrical,
         water and sewage services and facilities) are available at the
         applicable Land and will be constructed prior to the Completion Date
         for such Property;

                  (q) As of each Property Closing Date, the date of each
         subsequent Advance and the Rent Commencement Date only, acquisition,
         installation and testing of the Equipment (if any) and construction of
         the Improvements (if any) to such date shall have been performed in a
         good and workmanlike manner, substantially in accordance with the
         applicable Plans and Specifications;

                  (r) (i) The Security Documents create, as security for the
                  Obligations (as such term is defined in the Security
                  Agreement), valid and enforceable security interests in, and
                  Liens on, all of the Collateral, in favor of the Agent, for
                  the ratable benefit of the Secured Parties, as their
                  respective interests appear in the Operative Agreements, and
                  such security interests and Liens are subject to no other

                                       24
<PAGE>

                  Liens other than Liens that are expressly set forth as title
                  exceptions on the title commitment issued under Section 5.3(g)
                  with respect to the applicable Property, to the extent such
                  title commitment has been approved by the Agent. Upon
                  recordation of the Mortgage Instrument in the real estate
                  recording office in the applicable Approved State identified
                  by the Construction Agent or the Lessee, the Lien created by
                  the Mortgage Instrument in the real property described therein
                  shall be a perfected first priority mortgage Lien on such real
                  property (or, in the case of a Ground Lease, the leasehold
                  estate under such Ground Lease) in favor of the Agent, for the
                  ratable benefit of the Secured Parties, as their respective
                  interests appear in the Operative Agreements. To the extent
                  that the security interests in the portion of the Collateral
                  comprised of personal property can be perfected by filing in
                  the filing offices of the Lessor's location for purposes of
                  the UCC (respecting the Lessor) and the filing offices of the
                  Construction Agent's and the Lessee's location for purposes of
                  the UCC (respecting the Construction Agent and the Lessee) or
                  location of the collateral or elsewhere identified by the
                  Construction Agent or the Lessee, upon filing of the Lender
                  Financing Statements in such filing offices, the security
                  interests created by the Security Agreement shall be perfected
                  first priority security interests in such personal property in
                  favor of the Agent, for the ratable benefit of the Secured
                  Parties, as their respective interests appear in the Operative
                  Agreements;

                           (ii) The Lease Agreement creates, as security for the
                  obligations of the Lessee under the Lease Agreement, valid and
                  enforceable security interests in, and Liens on, each Property
                  leased thereunder, in favor of the Lessor, and such security
                  interests and Liens are subject to no other Liens other than
                  Liens that are expressly set forth as title exceptions on the
                  title commitment issued under Section 5.3(g) with respect to
                  the applicable Property, to the extent such title commitment
                  has been approved by the Agent. Upon recordation of the
                  memorandum of the Lease Agreement and the memorandum of a
                  Ground Lease (or, in either case, a short form lease) in the
                  real estate recording office in the applicable Approved State
                  identified by the Construction Agent or the Lessee, the Lien
                  created by the Lease Agreement in the real property described
                  therein shall be a perfected first priority mortgage Lien on
                  such real property (or, in the case of a Ground Lease, on the
                  leasehold estate under such Ground Lease) in favor of the
                  Agent, for the ratable benefit of the Secured Parties, as
                  their respective interests appear in the Operative Agreements.
                  To the extent that the security interests in the portion of
                  any Property comprised of personal property can be perfected
                  by the filing in the filing offices of the Lessor's location
                  for purposes of the UCC (respecting the Lessor) and the filing
                  offices of the Construction Agent's and the Lessee's location
                  for purposes of the UCC (respecting the Construction Agent and
                  the Lessee) or location of the collateral or elsewhere
                  identified by the Construction Agent or the Lessee upon filing
                  of the Lessor Financing Statements in such filing offices, a
                  security interest created by the Lease Agreement shall be
                  perfected first priority security interests in such personal
                  property in favor of the Lessor, which rights pursuant to the
                  Lessor Financing Statements are assigned to the Agent, for the
                  ratable benefit of the Secured Parties, as their respective
                  interests appear in the Operative Agreements;

                                       25
<PAGE>

                  (s) The Plans and Specifications for each Property will be
         prepared prior to the commencement of construction in accordance with
         all applicable Legal Requirements (including without limitation all
         applicable Environmental Laws and building, planning, zoning and fire
         codes), except to the extent the failure to comply therewith,
         individually or in the aggregate, shall not have and could not
         reasonably be expected to have a Material Adverse Effect. Upon
         completion of the Improvements for each Property in accordance with the
         applicable Plans and Specifications, such Improvements will be within
         any building restriction lines and will not encroach in any manner onto
         any adjoining land (except as permitted by express written easements,
         which have been approved by the Agent). In addition, the Lessee has
         caused to be delivered to the Agent for the applicable Property the
         most current Plans and Specifications, the most current construction
         schedule and the most current Construction Budget, all in accordance
         with applicable provisions of the Operative Agreements;

                  (t) As of the Rent Commencement Date only, each Property shall
         be improved in accordance with the applicable Plans and Specifications
         in a good and workmanlike manner and shall be operational;

                  (u)      [Intentionally Omitted];

                  (v) As of each Property Closing Date only, each Property has
         been acquired or ground leased pursuant to a Ground Lease at a price
         that is not in excess of fair market value or fair market rental value,
         as the case may be; and

                  (w) The consolidated balance sheet and income statement of the
         Guarantor and its Consolidated Subsidiaries as of September 30, 2001,
         together with related consolidated statements of operations and
         retained earnings and of cash flows as of September 30, 2001 and the
         consolidated balance sheet and income statement of the Guarantor and
         its Consolidated Subsidiaries as of December 31, 2000, together with
         related consolidated statements of operations and retained earnings and
         of cash flows as of December 31, 2000, fairly present in all material
         respects the consolidated financial condition of the Guarantor and its
         Consolidated Subsidiaries as at such dates and the consolidated results
         of the operations of the Guarantor and its Consolidated Subsidiaries
         for the periods ended on such dates, all in accordance with GAAP,
         subject with respect to the September 30, 2001 financial statements, to
         changes resulting from audit and normal year-end audit adjustments.

                                       26
<PAGE>

                              SECTION 6B. GUARANTY

         6B.1.    GUARANTY OF PAYMENT AND PERFORMANCE.
                  -----------------------------------

         Subject to Section 6B.7, the Guarantor hereby, jointly and severally,
unconditionally guarantees (i) the prompt payment and performance of the Company
Obligations in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise) or when such is otherwise to be
performed; and (ii) on and after the earlier of the Construction Period
Termination Date and the occurrence of a Lease Event of Default, the prompt
payment and performance of the Lessor Obligations, including without limitation
payment of the Tranche A Notes, interest on the Tranche A Notes and other
amounts which are owed pursuant to any Operative Agreement to any Tranche A
Lender or the Agent, in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration or otherwise) or when such is otherwise to
be performed. This Section 6B is a guaranty of payment and performance and not
of collection and is a continuing guaranty and shall apply to all Company
Obligations whenever arising and, to the extent set forth above, all Lessor
Obligations whenever arising. All rights granted under this Section 6B shall be
subject to the provisions of Section 8.2(h) and 8.6.

         6B.2.    OBLIGATIONS UNCONDITIONAL.
                  -------------------------

         The Guarantor agrees that the obligations of the Guarantor hereunder
are absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Operative Agreements, or
any other agreement or instrument referred to therein, or any substitution,
release or exchange of any other guarantee of or security for any of the Company
Obligations or Lessor Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety,
guarantor or co-obligor, it being the intent of this Section 6B.2 that the
obligations of the Guarantor hereunder shall be absolute and unconditional under
any and all circumstances. The Guarantor agrees that this Section 6B may be
enforced without the necessity at any time of resorting to or exhausting any
other security or collateral and without the necessity at any time of having
recourse to the Notes, the Certificates or any other of the Operative Agreements
or any collateral, if any, hereafter securing the Company Obligations or
otherwise and the Guarantor hereby waives the right to require any benefitted
party to proceed against the Construction Agent, the Lessee or any other Person
(including without limitation a co-guarantor) or to require any benefitted party
to pursue any other remedy or enforce any other right. The Guarantor further
agrees that it hereby waives any and all right of subrogation, indemnity,
reimbursement or contribution against the Lessee and the Construction Agent, the
Lessor or the Guarantor of the Company Obligations or the Lessor Obligations for
amounts paid under this Section 6B until such time as the Loans, Holder
Advances, accrued but unpaid interest, accrued but unpaid Holder Yield and all
other amounts owing under the Operative Agreements have been paid in full.
Without limiting the generality of the waiver provisions of this Section 6B, the
Guarantor hereby waives any rights to require any benefitted party to proceed
against the Construction Agent, the Lessee or any co-guarantor or to require
Lessor to pursue any other remedy or enforce any other right, including without
limitation, any and all rights under N.C. Gen. Stat. ss. 26-7 through 26-9. The
Guarantor further agrees that nothing contained herein shall prevent any
benefitted party from suing on any Operative Agreement or foreclosing any

                                       27
<PAGE>

security interest in or Lien on any collateral, if any, securing the Company
Obligations or the Lessor Obligations or from exercising any other rights
available to it under any Operative Agreement, or any other instrument of
security, if any, and the exercise of any of the aforesaid rights and the
completion of any foreclosure proceedings shall not constitute a discharge of
the Guarantor's obligations hereunder; it being the purpose and intent of the
Guarantor that its obligations hereunder shall be absolute, independent and
unconditional under any and all circumstances; provided that any amounts due
under this Section 6B which are paid to or for the benefit of any benefitted
party shall reduce the Company Obligations and/or the Lessor Obligations, as
applicable, by a corresponding amount (unless required to be rescinded at a
later date). Neither the Guarantor's obligations under this Section 6B nor any
remedy for the enforcement thereof shall be impaired, modified, changed or
released in any manner whatsoever by an impairment, modification, change,
release or limitation of the liability of the Construction Agent or the Lessee
or by reason of the bankruptcy or insolvency of the Construction Agent or the
Lessee. The Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Company Obligations or any of the Lessor
Obligations and notice of or proof of reliance by any benefitted party upon this
Section 6B or acceptance of this Section 6B. The Company Obligations and the
Lessor Obligations shall conclusively be deemed to have been created, contracted
or incurred, or renewed, extended, amended or waived, in reliance upon this
Section 6B. All dealings between the Construction Agent, the Lessee and the
Guarantor, on the one hand, and the benefitted parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Section 6B.

         6B.3.    MODIFICATIONS.
                  -------------

         The Guarantor agrees that (a) all or any part of the security now or
hereafter held for the Company Obligations or the Lessor Obligations, if any,
may be exchanged, compromised or surrendered from time to time; (b) no
benefitted party shall have any obligation to protect, perfect, secure or insure
any such security interests, liens or encumbrances now or hereafter held, if
any, for the Company Obligations or the Lessor Obligations or the properties
subject thereto; (c) the time or place of payment of the Company Obligations or
the Lessor Obligations may be changed or extended, in whole or in part, to a
time certain or otherwise, and may be renewed or accelerated, in whole or in
part; (d) the Construction Agent, the Lessee and any other party liable for
payment under the Operative Agreements may be granted indulgences generally; (e)
any of the provisions of the Notes, the Certificates or any of the other
Operative Agreements may be modified, amended or waived; (f) any party
(including any co-guarantor) liable for the payment thereof may be granted
indulgences or be released; and (g) any deposit balance for the credit of the
Construction Agent, the Lessee or any other party liable for the payment of the
Company Obligations or the Lessor Obligations or liable upon any security
therefor may be released, in whole or in part, at, before or after the stated,
extended or accelerated maturity of the Company Obligations or the Lessor
Obligations, all without notice to or further assent by the Guarantor, which
shall remain bound thereon, notwithstanding any such exchange, compromise,
surrender, extension, renewal, acceleration, modification, indulgence or
release.

                                       28
<PAGE>

         6B.4.    WAIVER OF RIGHTS.
                  ----------------

         The Guarantor expressly waives to the fullest extent permitted by
applicable law: (a) notice of acceptance of this Section 6B by any benefitted
party and of all extensions of credit or other Advances to the Construction
Agent and the Lessee by the Lenders pursuant to the terms of the Operative
Agreements; (b) presentment and demand for payment or performance of any of the
Company Obligations or the Lessor Obligations; (c) protest and notice of
dishonor or of default with respect to the Company Obligations, the Lessor
Obligations or with respect to any security therefor; (d) notice of any
benefitted party obtaining, amending, substituting for, releasing, waiving or
modifying any security interest, lien or encumbrance, if any, hereafter securing
the Company Obligations or the Lessor Obligations, or any benefitted party's
subordinating, compromising, discharging or releasing such security interests,
liens or encumbrances, if any; and (e) all other notices to which the Guarantor
might otherwise be entitled. Notwithstanding anything to the contrary herein,
the Guarantor's payments hereunder shall be due five (5) Business Days after
written demand by the Agent for such payment (unless the Company Obligations or
the Lessor Obligations are automatically accelerated pursuant to the applicable
provisions of the Operative Agreements in which case the Guarantor's payments
shall be automatically due).

         6B.5.    REINSTATEMENT.
                  -------------

         The obligations of the Guarantor under this Section 6B shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Company Obligations or the Lessor
Obligations is rescinded or must be otherwise restored by any holder of any of
the Company Obligations or the Lessor Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, and the Guarantor
agrees that it will indemnify each benefitted party on demand for all reasonable
costs and expenses (including, without limitation, reasonable fees of counsel)
incurred by any benefitted party in connection with such rescission or
restoration, including without limitation any such costs and expenses incurred
in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

         6B.6.    REMEDIES.
                  --------

         The Guarantor agrees that, as between the Guarantor, on the one hand,
and each benefitted party, on the other hand, the Company Obligations or the
Lessor Obligations may be declared to be forthwith due and payable as provided
in the applicable provisions of the Operative Agreements (and shall be deemed to
have become automatically due and payable in the circumstances provided therein)
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing such Company Obligations or such Lessor Obligations
from becoming automatically due and payable) as against any other Person and
that, in the event of such declaration (or such Company Obligations or such
Lessor Obligations being deemed to have become automatically due and payable),
such Company Obligations or such Lessor Obligations (whether or not due and
payable by any other Person) shall forthwith become due and payable by the
Guarantor in accordance with the applicable provisions of the Operative
Agreements.

                                       29
<PAGE>

         6B.7.    LIMITATION OF GUARANTY.

         Notwithstanding any provision to the contrary contained herein or in
any of the other Operative Agreements, to the extent the obligations of the
Guarantor shall be adjudicated to be invalid or unenforceable for any reason
(including without limitation because of any applicable state or federal law
relating to fraudulent conveyances or transfers) then the obligations of the
Guarantor hereunder shall be limited to the maximum amount that is permissible
under applicable law (whether federal or state and including without limitation
the Bankruptcy Code).

         Subject to Section 6B.5, upon the satisfaction of the Company
Obligations and the Lessor Obligations in full, regardless of the source of
payment, the Guarantor's obligations hereunder shall be deemed satisfied,
discharged and terminated other than indemnifications set forth herein that
expressly survive.

         6B.8.    PAYMENT OF AMOUNTS TO THE AGENT.

         Each benefitted party hereby instructs the Guarantor, and the Guarantor
hereby acknowledges and agrees, that until such time as the Loans and the Holder
Advances are paid in full and the Liens evidenced by the Security Agreement and
the Mortgage Instruments have been released any and all Rent (excluding Excepted
Payments which shall be payable to each Holder or other Person as appropriate)
and any and all other amounts of any kind or type under any of the Operative
Agreements due and owing or payable to any Person shall instead be paid directly
to the Agent (excluding Excepted Payments which shall be payable to each Holder
or other Person as appropriate) or as the Agent may direct from time to time for
allocation and distribution in accordance with the procedures set forth in
Section 8.7 hereof.

                     SECTION 7. PAYMENT OF CERTAIN EXPENSES.

         7.1.     TRANSACTION EXPENSES.

                  (a) The Lessor agrees on the Initial Closing Date, to pay, or
         cause to be paid, all Transaction Expenses arising from the Initial
         Closing Date, including without limitation all reasonable fees,
         expenses and disbursements of the various legal counsels for the Lessor
         and the Agent in connection with the transactions contemplated by the
         Operative Agreements and incurred in connection with such Initial
         Closing Date, the initial fees and expenses of the Owner Trustee due
         and payable on such Initial Closing Date, all fees, taxes and expenses
         for the recording, registration and filing of documents and all other
         reasonable fees, expenses and disbursements incurred in connection with
         such Initial Closing Date; provided, however, the Lessor shall pay such
         amounts described in this Section 7.1(a) only if (i) such amounts are
         properly described in a Requisition delivered on or before the Initial
         Closing Date, and (ii) funds are made available by the Lenders and the
         Holders in connection with such Requisition in an amount sufficient to
         allow such payment. On the Initial Closing Date after delivery and
         receipt of the Requisition referenced in Section 4.2(a) hereof and
         satisfaction of the other conditions precedent for such date, the

                                       30
<PAGE>

         Holders shall make Holder Advances and the Lenders shall make Loans to
         the Lessor to pay for the Transaction Expenses, fees, expenses and
         other disbursements referenced in this Section 7.1(a). The Lessee
         agrees to timely pay all amounts referred to in this Section 7.1(a) to
         the extent not paid by the Lessor.

                  (b) Assuming no Default or Event of Default shall have
         occurred and be continuing and only for the period prior to the Rent
         Commencement Date, the Lessor agrees on each Property Closing Date, on
         the date of any Construction Advance and on the Completion Date to pay,
         or cause to be paid, all Transaction Expenses including without
         limitation all reasonable fees, expenses and disbursements of the
         various legal counsels for the Lessor and the Agent in connection with
         the transactions contemplated by the Operative Agreements and billed in
         connection with such Advance or such Completion Date, all amounts
         described in Section 7.1(a) of this Agreement which have not been
         previously paid, the annual fees and reasonable out-of-pocket expenses
         of the Owner Trustee, all fees, expenses and disbursements incurred
         with respect to the various items referenced in Sections 5.3, 5.4
         and/or 5.5 (including without limitation any premiums for title
         insurance policies and charges for any updates to such policies) and
         all other reasonable fees, expenses and disbursements in connection
         with such Advance or such Completion Date including without limitation
         all expenses relating to and all fees, taxes and expenses for the
         recording, registration and filing of documents and during the
         Commitment Period, all fees, expenses and costs referenced in Sections
         7.3(a), 7.3(b), 7.3(d) and 7.4; provided, however, the Lessor shall pay
         such amounts described in this Section 7.1(b) only if (i) such amounts
         are properly described in a Requisition delivered on the applicable
         date and (ii) funds are made available by the Lenders and the Holders
         in connection with such Requisition in an amount sufficient to allow
         such payment. On each Property Closing Date, on the date of any
         Construction Advance or any Completion Date, after delivery of the
         applicable Requisition and satisfaction of the other conditions
         precedent for such date, the Holders shall make a Holder Advance and
         the Lenders shall make Loans to the Lessor to pay for the Transaction
         Expenses, fees, expenses and other disbursements referenced in this
         Section 7.1(b). The Lessee agrees to timely pay all amounts referred to
         in this Section 7.1(b) to the extent not paid by the Lessor.

                  (c) All fees payable pursuant to the Operative Agreements
         shall be calculated on the basis of a year of three hundred sixty (360)
         days for the actual days elapsed.

         7.2.     BROKERS' FEES.
                  -------------

         The Lessee agrees to pay or cause to be paid any and all brokers' fees,
if any, including without limitation any interest and penalties thereon, which
are payable in connection with the transactions contemplated by this Agreement
and the other Operative Agreements.

         7.3.     CERTAIN FEES AND EXPENSES.
                  -------------------------

         The Lessee agrees to pay or cause to be paid (a) the initial and annual
Owner Trustee's fee and all reasonable expenses of the Owner Trustee and any
co-trustees (including without limitation reasonable counsel fees and expenses)

                                       31
<PAGE>

or any successor owner trustee and/or co-trustee, for acting as the owner
trustee under the Trust Agreement, (b) all reasonable costs and expenses
incurred by the Credit Parties, the Agent, the Lenders, the Holders or the
Lessor regarding filings of Security Documents, in entering into any Lease
Supplement and any future amendments, modifications, supplements, restatements
and/or replacements with respect to any of the Operative Agreements, whether or
not such Lease Supplement, amendments, modifications, supplements, restatements
and/or replacements are ultimately entered into, or giving or withholding of
waivers of consents hereto or thereto, which have been requested by any Credit
Party, the Agent, the Lenders, the Holders or the Lessor, (c) all reasonable
costs and expenses incurred by the Credit Parties, the Agent, the Lenders, the
Holders or the Lessor in connection with any exercise of remedies under any
Operative Agreement or any purchase of any Property by the Construction Agent,
the Lessee or any third party and (d) all reasonable costs and expenses incurred
by the Credit Parties, the Agent, the Lenders, the Holders or the Lessor in
connection with any transfer or conveyance of any Property, whether or not such
transfer or conveyance is ultimately accomplished.

         7.4.     UNUSED FEE.
                  ----------

         During the Commitment Period, the Lessee agrees to pay or to cause to
be paid to the Agent for the account of (a) the Lenders, respectively, an unused
fee (the "Lender Unused Fee") equal to the product of the average daily
Available Commitment of each Lender during the Commitment Period multiplied by
the applicable rate set forth for Unused Fee in the definition of Applicable
Percentage in accordance with the provisions set forth in such definition and
(b) the Holders, respectively, an unused fee (the "Holder Unused Fee") equal to
the product of the average daily Available Holder Commitment of each Holder
during the Commitment Period multiplied by the applicable rate set forth for
Unused Fee in the definition of Applicable Percentage in accordance with the
provisions set forth in such definition. Such Unused Fees shall be payable
quarterly in arrears on each Unused Fee Payment Date. If all or a portion of any
such Unused Fee shall not be paid when due, such overdue amount shall bear
interest, payable by the Lessee on demand, at a rate per annum equal to the ABR
plus the Applicable Percentage then applicable to Tranche B Loans which are ABR
Loans (or in the case of Holder Yield, the ABR plus the Applicable Percentage
then applicable to Holder Advances plus two percent (2%) from the date of such
non-payment until such amount is paid in full (as well as before judgment).

         7.5.     ADMINISTRATIVE FEE.
                  ------------------

         The Lessee shall pay or cause to paid an administrative fee to the
Agent (for its individual account) on the terms and conditions set forth in the
Engagement Letter.

         7.6.     UPFRONT FEE.
                  -----------

         The Lessee, at its option, either (a) shall cause the Lessor to pay or
(b) to the extent such amounts are not otherwise paid by the Lessor, the Lessee
shall timely pay, in either case on the Initial Closing Date an upfront fee in
accordance with the terms and conditions set forth in the Upfront Fee Letter.

                                       32
<PAGE>

         7.7.     STRUCTURING FEE.
                  ---------------

         The Lessee shall pay or cause to be paid on or before the Initial
Closing Date to the Agent for its own account, a structuring fee on the terms
and conditions set forth in the Engagement Letter.

                   SECTION 8. OTHER COVENANTS AND AGREEMENTS.

         8.1.     COOPERATION WITH THE CONSTRUCTION AGENT OR THE LESSEE.
                  -----------------------------------------------------

         The Holders, the Lenders, the Lessor (at the direction of the Majority
Secured Parties) and the Agent shall, at the expense of and to the extent
reasonably requested by the Construction Agent or the Lessee (but without
assuming additional liabilities on account thereof and only to the extent such
is acceptable to the Holders, the Lenders, the Lessor (at the direction of the
Majority Secured Parties) and the Agent in their reasonable discretion),
cooperate with the Construction Agent or the Lessee in connection with the
Construction Agent or the Lessee satisfying certain of its covenant obligations
contained in the Operative Agreements (but only to the extent that the party
from whom such cooperation is requested deems, in its reasonable discretion,
such cooperation to be appropriate) including without limitation at any time and
from time to time, promptly and duly executing and delivering any and all such
further instruments, documents and financing statements (and continuation
statements related thereto).

         8.2.     COVENANTS OF THE OWNER TRUSTEE AND THE HOLDERS.
                  ----------------------------------------------

         Each of the Owner Trustee and the Holders hereby agrees that so long as
this Agreement is in effect:

                  (a) Neither the Owner Trustee (in its trust capacity or in its
         individual capacity) nor any Holder will create or permit to exist at
         any time, and each of them will, at its own cost and expense, promptly
         take such action as may be necessary duly to discharge, or to cause to
         be discharged, all Lessor Liens on the Properties attributable to it;

                  (b) Without prejudice to any right under the Trust Agreement
         of the Owner Trustee to resign (subject to requirement set forth in the
         Trust Agreement that such resignation shall not be effective until a
         successor shall have agreed to accept such appointment), or the
         Holders' rights under the Trust Agreement to remove the institution
         acting as the Owner Trustee (after consent to such removal by the Agent
         as provided in the Trust Agreement), each of the Owner Trustee and the
         Holders hereby agrees with the Lessee and the Agent (i) not to
         terminate or revoke the trust created by the Trust Agreement except as
         permitted by Article VIII of the Trust Agreement, (ii) not to amend,
         supplement, terminate or revoke or otherwise modify any provision of
         the Trust Agreement in such a manner as to adversely affect the rights
         of any such party without the prior written consent of such party and
         (iii) to comply with all of the terms of the Trust Agreement, the
         nonperformance of which would adversely affect such party;

                                       33
<PAGE>

                  (c) The Owner Trustee or any successor may resign or be
         removed by the Holders as the Owner Trustee, a successor Owner Trustee
         may be appointed and a corporation may become the Owner Trustee under
         the Trust Agreement, only in accordance with the provisions of Article
         IX of the Trust Agreement and, with respect to such appointment, with
         the consent of the Lessee (so long as there shall be no Lease Event of
         Default that shall have occurred and be continuing), which consent
         shall not be unreasonably withheld or delayed;

                  (d) The Owner Trustee, in its capacity as the Owner Trustee
         under the Trust Agreement, and not in its individual capacity, shall
         not contract for, create, incur or assume any Indebtedness, or enter
         into any business or other activity or enter into any contracts or
         agreements, other than pursuant to or under the Operative Agreements;

                  (e) The Holders will not instruct the Owner Trustee to take
         any action in violation of the terms of any Operative Agreement;

                  (f) Neither any Holder nor the Owner Trustee shall (i)
         commence any case, proceeding or other action with respect to the Owner
         Trustee under any existing or future law of any jurisdiction, domestic
         or foreign, relating to bankruptcy, insolvency, reorganization,
         arrangement, winding-up, liquidation, dissolution, composition or other
         relief with respect to it or its debts, or (ii) seek appointment of a
         receiver, trustee, custodian or other similar official with respect to
         the Owner Trustee or for all or any substantial benefit of the
         creditors of the Owner Trustee; and neither any Holder nor the Owner
         Trustee shall take any action in furtherance of, or indicating its
         consent to, approval of, or acquiescence in, any of the acts set forth
         in this paragraph;

                  (g) The Owner Trustee shall give prompt notice to the Lessee,
         the Holders and the Agent if the Owner Trustee's principal place of
         business, chief executive office, location for purposes of UCC, or the
         office where the records concerning the accounts or contract rights
         relating to any Property are kept, shall cease to be located at 225
         Asylum Street, Goodwin Square, Hartford, Connecticut 06103 or if it
         shall change its name;

                  (h) The Owner Trustee shall take or refrain from taking such
         actions and grant or refrain from granting such approvals with respect
         to the Operative Agreements and/or relating to any Property in each
         case as directed in writing by the Agent (until such time as the Loans
         are paid in full, and then by the Majority Holders) or, in connection
         with Sections 8.5 and 9.2 hereof, the Lessee; provided, however, that
         notwithstanding the foregoing provisions of this subparagraph (h) the
         Owner Trustee, the Agent, the Lenders and the Holders each acknowledge,
         covenant and agree that neither the Owner Trustee nor the Agent shall
         act or refrain from acting, regarding each Unanimous Vote Matter, until
         such party has received the approval of each Lender and each Holder
         affected by such matter; and

                                       34
<PAGE>

                  (i) The Owner Trustee authorizes the Agent to file fixture
         filings and/or financing statements with respect to any collateral
         under or pursuant to any Operative Agreement without the signature of
         the Owner Trustee in such form and in such filing offices as the Agent
         reasonably determines appropriate to perfect the security interests of
         the Agent under the applicable Operative Agreement.

         8.3.     CREDIT PARTY COVENANTS, CONSENT AND ACKNOWLEDGMENT.
                  --------------------------------------------------

                  (a) Each Credit Party acknowledges and agrees that the Owner
         Trustee, pursuant to the terms and conditions of the Security Agreement
         and the Mortgage Instruments, shall create Liens respecting the various
         personal property, fixtures and real property described therein in
         favor of the Agent. Each Credit Party hereby irrevocably consents to
         the creation, perfection and maintenance of such Liens. Each Credit
         Party shall, to the extent reasonably requested by any of the other
         parties hereto, cooperate with the other parties in connection with
         their covenants herein or in the other Operative Agreements and shall
         from time to time duly execute and deliver any and all such future
         instruments, documents and financing statements (and continuation
         statements related thereto) as any other party hereto may reasonably
         request.

                  (b) The Lessor hereby instructs each Credit Party, and each
         Credit Party hereby acknowledges and agrees, that until such time as
         the Loans and the Holder Advances are paid in full and the Liens
         evidenced by the Security Agreement and the Mortgage Instruments have
         been released (i) any and all Rent and any and all other amounts of any
         kind or type under any of the Operative Agreements due and owing or
         payable to any Person (except for Excepted Payments) shall instead be
         paid directly to the Agent (on behalf of the Person entitled thereto)
         or as the Agent may direct from time to time for allocation and
         distribution in accordance with the procedures set forth in Section 8.7
         hereof, (ii) all rights of the Lessor under the Lease shall be
         exercised by the Agent and (iii) each Credit Party shall cause all
         notices, certificates, financial statements, communications and other
         information which are delivered, or are required to be delivered, to
         the Lessor, to also be delivered at the same time to the Agent.

                  (c) No Credit Party shall consent to or permit any amendment,
         supplement or other modification of the terms or provisions of any
         Operative Agreement except in accordance with Section 12.4 of this
         Agreement.

                  (d) Each Credit Party hereby covenants and agrees that, except
         for amounts payable as Basic Rent, any and all payment obligations
         owing from time to time under the Operative Agreements by any Person to
         the Agent, any Lender, any Holder or any other Person shall (without
         further action) be deemed to be Supplemental Rent obligations payable
         by the Lessee and guaranteed by the other Credit Parties. Without
         limitation, such obligations of the Credit Parties shall include
         without limitation arrangement fees, administrative fees, participation
         fees, commitment fees, unused fees, breakage costs, prepayment
         penalties, indemnities, trustee fees and transaction expenses incurred
         by the parties hereto in connection with the transactions contemplated
         by the Operative Agreements.

                                       35
<PAGE>

                  (e) The Lessee hereby covenants and agrees to cause an
         Appraisal or reappraisal (in form and substance satisfactory to the
         Agent and from an appraiser selected by the Agent) to be issued
         respecting any Property as requested by the Agent from time to time (i)
         at each and every time as such shall be required to satisfy any
         regulatory requirements imposed on the Agent, the Lessor, the Trust
         Company, any Lender and/or any Holder and (ii) after the occurrence of
         an Event of Default.

                  (f) [Intentionally Omitted].

                  (g) At any time the Lessor or the Agent is entitled under the
         Operative Agreements to possession of a Property or any component
         thereof, each of the Construction Agent and the Lessee hereby covenants
         and agrees, at its own cost and expense, to assemble and make the same
         available to the Agent (on behalf of the Lessor).

                  (h) [Intentionally Omitted].

                  (i) The Lessee hereby covenants and agrees that as of
         Completion (i) the Property Cost for each individual parcel of the
         Property shall be (A) no less than $5,000,000 and (B) no more than
         $200,000,000 and (ii) each parcel of the Property shall be a Permitted
         Facility.

                  (j) The Lessee hereby covenants and agrees that it shall give
         prompt notice to the Agent if the Lessee's location for purposes of the
         UCC shall cease to be One HealthSouth Parkway, Birmingham, Alabama
         35243, and the Lessee shall specify its new location for purposes of
         the UCC in such notice. The Lessee hereby covenants and agrees that it
         shall give prompt notice to the Agent if the Lessee's principal place
         of business or chief executive office, or the office where the records
         concerning the accounts or contract rights relating to any Property are
         kept, shall cease to be located at One HealthSouth Parkway, Birmingham,
         Alabama 35243 or if it shall change its name, and the Lessee shall
         specify its new principal place of business, chief executive office,
         such other office where the records concerning the accounts or control
         rights relating to any Property are kept and/or its new name in such
         notice.

                  (k) If there is more than one Property, unless the Agent
         otherwise agrees in writing, the Lessee hereby covenants and agrees
         that the aggregate Property Cost of Properties purchased for any reason
         by the Lessee prior to the Expiration Date shall not exceed ten percent
         (10%) of the aggregate Property Cost for all Properties funded during
         the Commitment Period.

                  (l) [Intentionally Omitted].

                  (m) The Lessee hereby covenants and agrees that the rights of
         the Lessee under this Agreement and the Lease shall not impair or in
         any way diminish the obligations of the Construction Agent and/or the
         rights of the Lessor under the Agency Agreement.

                                       36
<PAGE>

                  (n) [Intentionally Omitted].

                  (o) Each Credit Party shall promptly notify the Agent, or
         cause the Agent to be promptly notified, upon such Credit Party gaining
         knowledge of the occurrence of any Default or Event of Default which is
         continuing at such time. In any event, such notice shall be provided to
         the Agent within ten (10) days of when such Credit Party gains such
         knowledge.

                  (p) Until all of the obligations under the Operative
         Agreements have been finally and indefeasibly paid and satisfied in
         full and the Commitments and the Holder Commitments terminated unless
         consent has been obtained from the Majority Secured Parties, each
         Credit Party will:

                           (i) preserve and maintain its separate legal
                  existence and all rights, franchises, licenses and privileges
                  necessary to the conduct of its business, and qualify and
                  remain qualified as a foreign corporation (or partnership,
                  limited liability company or other such similar entity, as the
                  case may be) and authorized to do business in each
                  jurisdiction in which the failure to so qualify would have a
                  Material Adverse Effect;

                           (ii) pay and perform all obligations of the Credit
                  Parties under the Operative Agreements and pay and perform (A)
                  all taxes, assessments and other governmental charges that may
                  be levied or assessed upon it or any of its property, and (B)
                  all other indebtedness, obligations and liabilities in
                  accordance with customary trade practices, which if not paid
                  would have a Material Adverse Effect; provided that any Credit
                  Party may contest any item described in this Section
                  8.3(p)(ii) in good faith so long as adequate reserves are
                  maintained with respect thereto in accordance with GAAP;

                           (iii) to the extent failure to do so would have a
                  Material Adverse Effect, observe and remain in compliance with
                  all applicable Laws and maintain in full force and effect all
                  Governmental Actions, in each case applicable to the conduct
                  of its business; keep in full force and effect all licenses,
                  certifications or accreditations necessary for any Property to
                  carry on its business; and not permit the termination of any
                  insurance reimbursement program available to any Property; and

                           (iv) provided that the Agent, the Lenders and the
                  Holders use reasonable efforts to minimize disruption to the
                  business of the Credit Parties and provide reasonable notice
                  thereof unless a Lease Default or Lease Event of Default has
                  occurred and is continuing, permit representatives of the
                  Agent or any Lender or Holder, from time to time, to visit and
                  inspect its properties; inspect, audit and make extracts from
                  its books, records and files, including without limitation
                  management letters prepared by independent accountants; and
                  discuss with its principal officers, and its independent
                  accountants, its business, assets, liabilities, financial
                  condition, results of operations and business prospects.

                                       37
<PAGE>

                  (q) [Intentionally Omitted].

                  (r) Lessee shall perform any and all obligations of Lessor
         under, and cause Lessor to otherwise remain in full compliance with,
         the terms and provisions of each Ground Lease, if any.

                  (s) Promptly after obtaining any required architectural
         approvals by any business park or any other applicable entity with
         oversight responsibility for the applicable Improvements, the
         Construction Agent shall deliver to the Agent copies of the same.

                  (t) [Intentionally Omitted].

                  (u) The Lessee authorizes the Agent to file fixture filings
         and/or financing statements with respect to any collateral under or
         pursuant to any Operative Agreement without the signature of the Lessee
         in such form and in such filing offices as the Agent reasonably
         determines appropriate to perfect the security interests of the Agent
         under the applicable Operative Agreements.

                  (v) As soon as available, and in any event within ten (10)
         days of receipt of each statement or any correspondence regarding the
         Cash Collateral Account or at any other time requested by the Agent,
         Lessee shall deliver to the Agent a copy of such statement or
         correspondence.

                  (w) On the third anniversary of the Initial Closing Date, the
         Lessee shall purchase all of the Tranche A Notes from each of the
         Tranche A Lenders as of such date for an amount equal to the sum of (i)
         the then outstanding Tranche A Loans, (ii) all accrued but unpaid
         interest on the Tranche A Loans and to the extent the same is not
         duplicative of the amounts payable under (i) and (ii) above, all other
         Rent and other amounts then due and payable or accrued in favor of the
         Tranche A Lenders under the Agency Agreement, Lease and/or under any
         other Operative Agreement (including without limitation amounts under
         Sections 11.1 and 11.2 of the Participation Agreement and all costs and
         expenses of Lessor regarding such transfer of the Tranche A Notes).

                  (x) In the event Lessee or Lessor would otherwise be required
         to transfer or assign any license, certification or other similar
         document, including without limitation pursuant to Article 22 of the
         Lease, but is prohibited by any Legal Requirement, then Lessee shall,
         at Lessee's expense, take all reasonable actions requested by the
         Agent, Lessor or any third party transferee of the Property to assist
         such Person in obtaining all such licenses, certifications and other
         similar documents which are necessary or typical, for the operation of
         a hospital facility similar to the Property or which were held
         previously with respect to the Property.

                  (y) Lessee shall promptly, but in no event more than five (5)
         Business Days after a change in Rating deliver to the Agent written
         notice of such Rating change.

                                       38
<PAGE>

         8.4.     SHARING OF CERTAIN PAYMENTS.
                  ---------------------------

         Except for Excepted Payments, the parties hereto acknowledge and agree
that all payments due and owing by any Credit Party to the Lessor under the
Lease or any of the other Operative Agreements shall be made by such Credit
Party directly to the Agent as more particularly provided in Section 8.3 hereof.
The Lessor, the Holders, the Agent, the Lenders and the Credit Parties
acknowledge the terms of Section 8.7 of this Agreement regarding the allocation
of payments and other amounts made or received from time to time under the
Operative Agreements and agree, that all such payments and amounts are to be
allocated as provided in Section 8.7 of this Agreement.

         8.5.     GRANT OF EASEMENTS, ETC.
                  -----------------------

         The Agent, the Lenders and the Holders hereby agree that, so long as no
Event of Default shall have occurred and be continuing, the Owner Trustee shall,
from time to time at the request of the Lessee (and with the prior consent of
the Agent), in connection with the transactions contemplated by the Agency
Agreement, the Lease or the other Operative Agreements, (i) grant easements and
other rights in the nature of easements with respect to any Property, (ii)
release existing easements or other rights in the nature of easements which are
for the benefit of any Property, (iii) execute and deliver to any Person any
instrument appropriate to confirm or effect such grants or releases, and (iv)
execute and deliver to any Person such other documents or materials in
connection with the acquisition, development, construction, testing or operation
of any Property, including without limitation reciprocal easement agreements,
construction contracts, operating agreements, development agreements, plats,
replats or subdivision documents; provided, that each of the agreements referred
to in this Section 8.5 shall be of the type normally executed by the Lessee in
the ordinary course of the Lessee's business and shall be on commercially
reasonable terms so as not to diminish the value of any Property in any material
respect.

         8.6.     APPOINTMENT BY THE AGENT, THE LENDERS, THE HOLDERS AND THE
                  ----------------------------------------------------------
                  OWNER TRUSTEE.
                  -------------

         The Holders hereby appoint the Agent to act as collateral agent for the
Holders in connection with the Lien granted by the Security Documents to secure
the Holder Amount. The Lenders and the Holders acknowledge and agree and direct
that the rights and remedies of the beneficiaries of the Lien of the Security
Documents shall be exercised by the Agent on behalf of the Lenders and the
Holders as directed from time to time by the Majority Secured Parties or,
pursuant to Sections 8.2(h) and 12.4, all of the Lenders and the Holders, as the
case may be; provided, in all cases, the Agent shall allocate payments and other
amounts received in accordance with Section 8.7. The Agent is further appointed
to provide notices under the Operative Agreements on behalf of the Owner Trustee
(as determined by the Agent, in its reasonable discretion), to receive notices
under the Operative Agreements on behalf of the Owner Trustee and (subject to
Sections 8.5 and 9.2) to take such other action under the Operative Agreements
on behalf of the Owner Trustee as the Agent shall determine in its reasonable
discretion from time to time. The Agent hereby accepts such appointments. For
purposes hereof, the provisions of Section 7 of the Credit Agreement, together

                                       39
<PAGE>

with such other terms and provisions of the Credit Agreement and the other
Operative Agreements as required for the full interpretation and operation of
Section 7 of the Credit Agreement are hereby incorporated by reference as if
restated herein for the mutual benefit of the Agent and each Holder as if each
Holder were a Lender thereunder. Outstanding Holder Advances and outstanding
Loans shall each be taken into account for purposes of determining Majority
Secured Parties. Further, the Agent shall be entitled to take such action on
behalf of the Owner Trustee as is delegated to the Agent under any Operative
Agreement (whether express or implied) as may be reasonably incidental thereto.
The parties hereto hereby agree to the provisions contained in this Section 8.6.
Any appointment of a successor agent under Section 7.9 of the Credit Agreement
shall also be effective as an appointment of a successor agent for purposes of
this Section 8.6.

         8.7.     COLLECTION AND ALLOCATION OF PAYMENTS AND OTHER AMOUNTS.
                  -------------------------------------------------------

                  (a) Each Credit Party has agreed pursuant to Section 5.10 and
         otherwise in accordance with the terms of this Agreement to pay to (i)
         the Agent any and all Rent and any and all other amounts of any kind or
         type under any of the Operative Agreements due and owing or payable to
         any Person and (ii) each Person as appropriate the Excepted Payments.
         Promptly after receipt, the Agent shall apply and allocate, in
         accordance with the terms of this Section 8.7, such amounts received
         from any Credit Party and all other payments, receipts and other
         consideration of any kind whatsoever received by the Agent pursuant to
         the Security Agreement or otherwise received by the Agent, the Holders
         or any of the Lenders in connection with the Collateral, the Security
         Documents or any of the other Operative Agreements. Ratable
         distributions among the Lenders and the Holders under this Section 8.7
         shall be made based on (in the case of the Lenders) the ratio of the
         outstanding Loans to the aggregate Property Cost and (in the case of
         the Holders) the ratio of the outstanding Holder Advances to the
         aggregate Property Cost. Ratable distributions among the Lenders (in
         situations where the Tranche A Lenders are not differentiated from the
         Tranche B Lenders) shall be made based on the ratio of the individual
         Lender's Loans outstanding to the aggregate of all the Lenders' Loans
         outstanding; provided, to the extent there are no Loans outstanding,
         such distributions shall be made based on the ratio of the individual
         Lender's Commitment to the aggregate of all the Lenders' Commitments.
         Ratable distributions among the Holders under this Section 8.7 shall be
         based on the ratio of the individual Holder's Holder Advances
         outstanding to the aggregate of all the Holders' Holder Advances
         outstanding; provided, to the extent there are not Holder Advances
         outstanding, such distributions shall be made based on the ratio of the
         individual Holder's Holder Commitment to the aggregate of all the
         Holders' Holder Commitments.

                  (b) Payments and other amounts received by the Agent from time
         to time in accordance with the terms of subparagraph (a) shall be
         applied and allocated as follows (subject in all cases to Section
         8.7(c)):

                           (i) Any such payment or amount identified as or
                  deemed to be Basic Rent shall be applied and allocated by the
                  Agent ratably to the Lenders and the Holders for application
                  and allocation to the payment of interest on the Loans and
                  thereafter the principal of the Loans which is due and payable
                  on such date and to the payment of accrued Holder Yield with
                  respect to the Holder Advances and thereafter the portion of
                  the Holder Advances which is due on such date.

                                       40
<PAGE>

                           (ii) If on any date the Agent or the Lessor shall
                  receive any amount in respect of (A) any Casualty or
                  Condemnation pursuant to Sections 15.1(a) or 15.1(g) of the
                  Lease (excluding any payments in respect thereof which are
                  payable to the Lessee in accordance with the Lease), or (B)
                  the Termination Value in connection with the delivery of a
                  Termination Notice pursuant to Article XVI of the Lease, or
                  (C) the Termination Value in connection with the exercise of
                  the Purchase Option under Section 20.1 of the Lease or the
                  exercise of the option of the Lessor to transfer the
                  Properties to the Lessee pursuant to Section 20.3 of the
                  Lease, or (D) any payment required to be made or elected to be
                  made by the Construction Agent to the Lessor pursuant to the
                  terms of the Agency Agreement, then in each case, the Lessor
                  shall be required to pay such amount received (1) if no
                  Acceleration has occurred, to prepay the principal balance of
                  the Loans and the Holder Advances, on a pro rata basis, a
                  portion of such amount to be distributed to the Lenders and
                  the Holders or (2) if an Acceleration has occurred, to apply
                  and allocate the proceeds respecting Sections 8.7(b)(ii)(A)
                  through 8.7(b)(ii)(D) in accordance with Section 8.7(b)(iii)
                  hereof.

                           (iii) An amount equal to any payment identified as
                  proceeds of the sale or other disposition (or lease upon the
                  exercise of remedies) of the Properties or any portion
                  thereof, whether pursuant to Article XXII of the Lease or the
                  exercise of remedies under the Security Documents or
                  otherwise, the execution of remedies set forth in the Lease
                  and any payment in respect of excess wear and tear pursuant to
                  Section 22.3 of the Lease (whether such payment relates to a
                  period before or after the Construction Period Termination
                  Date) shall be applied and allocated by the Agent first,
                  ratably to the payment of the principal and interest of the
                  Tranche B Loans then outstanding, second, ratably to the
                  payment of the principal and interest of the Tranche A Loans
                  then outstanding, third, ratably to the payment to the Holders
                  of the outstanding principal balance of all Holder Advances
                  plus all outstanding Holder Yield with respect to such
                  outstanding Holder Advances, fourth, to any and all other
                  amounts owing under the Operative Agreements to the Lenders
                  under the Tranche B Loans, fifth, to any and all other amounts
                  owing under the Operative Agreements to the Lenders under the
                  Tranche A Loans, sixth, to any and all other amounts owing
                  under the Operative Agreements to the Holders, and seventh, to
                  the extent moneys remain after application and allocation
                  pursuant to clauses first through sixth above, to the Owner
                  Trustee for application and allocation to any and all other
                  amounts owing to the Holders or the Owner Trustee and as the
                  Holders shall determine; provided, where no Event of Default
                  shall exist and be continuing and a prepayment is made for any
                  reason with respect to less than the full amount of the
                  outstanding principal amount of the Loans and the outstanding
                  Holder Advances, the proceeds shall be applied and allocated
                  ratably to the Lenders and to the Holders.

                                       41
<PAGE>

                           (iv) An amount equal to (A) any such payment pursuant
                  to Section 22.1(b) of the Lease (or otherwise) of the Maximum
                  Residual Guarantee Amount (and any such lesser amount as may
                  be required by Section 22.1(b) of the Lease) in respect of the
                  Properties and any such payment which derives from the Cash
                  Collateral Account and (B) any other amount payable upon any
                  exercise of remedies after the occurrence of an Event of
                  Default not covered by Sections 8.7(b)(i) or 8.7(b)(iii) above
                  (including without limitation any amount received in
                  connection with an Acceleration which does not represent
                  proceeds from the sale or liquidation of the Properties) shall
                  be applied and allocated by the Agent first, ratably, to the
                  payment of the principal and interest balance of Tranche A
                  Loans then outstanding, second, ratably to the payment of the
                  principal and interest balance of the Tranche B Loans then
                  outstanding, third, ratably to the payment of the principal
                  balance of all Holder Advances plus all outstanding Holder
                  Yield with respect to such outstanding Holder Advances,
                  fourth, to the payment of any other amounts owing to the
                  Lenders hereunder or under any of the other Operative
                  Agreement, and fifth, to the extent moneys remain after
                  application and allocation pursuant to clauses first through
                  fourth above, to the Owner Trustee for application and
                  allocation to Holder Advances and Holder Yield and any other
                  amounts owing to the Holders or the Owner Trustee as the
                  Holders shall determine.

                           (v) An amount equal to any such payment identified as
                  Supplemental Rent shall be applied and allocated by the Agent
                  to the payment of any amounts then owing to the Agent, the
                  Lenders, the Holders and the other parties to the Operative
                  Agreements (or any of them) (other than any such amounts
                  payable pursuant to the preceding provisions of this Section
                  8.7(b)) as shall be determined by the Agent in its reasonable
                  discretion; provided, however, that Supplemental Rent received
                  upon the exercise of remedies after the occurrence and
                  continuance of an Event of Default in lieu of or in
                  substitution of the Maximum Residual Guarantee Amount or as a
                  partial payment thereon shall be applied and allocated as set
                  forth in Section 8.7(b)(iv).

                           (vi) Amounts paid by the Guarantor pursuant to
                  Section 6B shall be applied and allocated by the Agent in the
                  same manner as the payment would have been applied and
                  allocated if paid by the Construction Agent or the Lessee.

                           (vii) The Agent in its reasonable judgment shall
                  identify the nature of each payment or amount received by the
                  Agent and apply and allocate each such amount in the manner
                  specified above.

                           (viii) Notwithstanding any other provision of any
                  Operative Agreement, if with respect to a Construction Period
                  Property any Advances were used to pay for Excluded Costs and
                  the Lessee has properly elected the Sale Option and paid the
                  Maximum Residual Guarantee Amount and all other amounts due,
                  then upon the sale of such Property an amount equal to the
                  proceeds from the sale of such Property plus the Maximum
                  Residual Guarantee Amount shall be applied in accordance with

                                       42
<PAGE>

                  Section 8.7 (b) (iii) up to the Adjusted Property Cost of such
                  Property. After distribution of an amount equal to the sales
                  proceeds pursuant to the preceding sentence with respect to
                  such Property plus the Maximum Residual Guarantee Amount, the
                  remaining sales proceeds, if any, shall be distributed first,
                  to the Lessee up to the Maximum Residual Guarantee Amount
                  previously paid by the Lessee (and not reclaimed) with respect
                  to such Property, second, ratably to the payment of the
                  principal and interest of the Tranche B Loans then
                  outstanding, third, ratably to the payment of the principal
                  and interest of the Tranche A Loans then outstanding, fourth,
                  ratably to the payment to the Holders of the outstanding
                  principal balance of and Holder Yield on all outstanding
                  Holder Advances, fifth, to any and all other amounts owing
                  under the Operative Agreements to the Lenders under the
                  Tranche B Loans, sixth, to any and all other amounts owing
                  under the Operative Agreements to the Lenders under the
                  Tranche A Loans, seventh, to any and all other amounts owing
                  under the Operative Agreements to the Holders, eighth, to any
                  and all other amounts owing under the Operative Agreements to
                  any Financing Party, and ninth, to the Lessee.

                  (c) Notwithstanding any other provision of any Operative
         Agreement, payment of principal, interest or any other amounts payable
         with respect to the Tranche A Loans held by any Credit Party or any of
         such Credit Party's Affiliates or assignees shall be subordinated to
         all other amounts owed to any other Financing Party whether by
         acceleration or otherwise upon the occurrence and continuance of an
         Event of Default. With respect to an election of Section 5.18(b) in
         this Agreement, all proceeds resulting from the right, title and
         interest of the Financing Parties in the applicable Construction Period
         Property shall be for the sole benefit of the Financing Parties, and
         the Lessee shall have no further right, title or interest therein.
         Except as described in the prior sentence, upon the payment in full of
         the Loans, the Holder Advances and all other amounts then due and owing
         by the Owner Trustee hereunder or under any Credit Document and the
         payment in full of all other amounts then due and owing to the Lenders,
         the Holders, the Agent, the Owner Trustee and the other Financing
         Parties pursuant to the Operative Agreements, any moneys remaining with
         the Agent shall be returned to the Lessee. It is agreed that, prior to
         the application and allocation of amounts received by the Agent in the
         order described in Section 8.7(b) above or any distribution of money to
         the Lessee, any such amounts shall first be applied and allocated to
         the payment of (i) any and all sums advanced by the Agent in order to
         preserve the Collateral or to preserve its Lien thereon, (ii) the
         expenses of retaking, holding, preparing for sale or lease, selling or
         otherwise disposing or realizing on the Collateral, or of any exercise
         by the Agent of its rights under the Security Documents, together with
         reasonable attorneys' fees and expenses and court costs and (iii) any
         and all other amounts reasonably owed to the Agent under or in
         connection with the transactions contemplated by the Operative
         Agreements (including without limitation any accrued and unpaid
         administration fees).

         8.8.     RELEASE OF PROPERTIES, ETC.
                  --------------------------

         If the Lessee shall at any time purchase any Property pursuant to the
Lease, or the Construction Agent shall purchase any Property pursuant to the

                                       43
<PAGE>

Agency Agreement, or if any Property shall be sold in accordance with Article
XXII of the Lease, then, upon satisfaction by the Owner Trustee of its
obligation to prepay the Loans, Holder Advances and all other amounts owing to
the Lenders and the Holders under the Operative Agreements, the Agent is hereby
authorized and directed to release such Property from the liens created by the
Security Documents to the extent of its interest therein. In addition, upon the
termination of the Commitments and the Holder Commitments and the payment in
full of the Loans, the Holder Advances and all other amounts owing by the Owner
Trustee and the Lessee hereunder or under any other Operative Agreement the
Agent is hereby authorized and directed to release all of the Properties from
the Liens created by the Security Documents to the extent of its interest
therein. Upon request of the Owner Trustee following any such release, the Agent
shall, at the sole cost and expense of the Lessee, execute and deliver to the
Owner Trustee and the Lessee such documents as the Owner Trustee or the Lessee
shall reasonably request to evidence such release.

                SECTION 9. CREDIT AGREEMENT AND TRUST AGREEMENT.

         9.1.     THE CONSTRUCTION AGENT'S AND THE LESSEE'S CREDIT AGREEMENT
                  ----------------------------------------------------------
                  RIGHTS.
                  ------

         Notwithstanding anything to the contrary contained in the Credit
Agreement, the Agent, the Lenders, the Holders, the Credit Parties and the Owner
Trustee hereby agree that, prior to the occurrence and continuation of any
Default or Event of Default, the Construction Agent or the Lessee, as the case
may be, shall have the following rights:

                  (a) the right to designate an account to which amounts funded
         under the Operative Agreements shall be credited pursuant to Section
         2.3(a) of the Credit Agreement;

                  (b) the right to terminate or reduce the Commitments pursuant
         to Section 2.5(a) of the Credit Agreement;

                  (c) the right to exercise the conversion and continuation
         options pursuant to Section 2.7 of the Credit Agreement;

                  (d) the right to receive any notice and any certificate, in
         each case issued pursuant to Section 2.11(a) of the Credit Agreement;

                  (e) the right to replace any Lender pursuant to Section
         2.11(b) of the Credit Agreement; and

                  (f) the right to approve any successor agent pursuant to
         Section 7.9 of the Credit Agreement.

         9.2.     THE CONSTRUCTION AGENT'S AND THE LESSEE'S TRUST AGREEMENT
                  ---------------------------------------------------------
                  RIGHTS.
                  ------

         Notwithstanding anything to the contrary contained in the Trust
Agreement, the Credit Parties, the Owner Trustee and the Holders hereby agree

                                       44
<PAGE>

that, prior to the occurrence and continuation of any Default or Event of
Default, the Construction Agent or the Lessee, as the case may be, shall have
the following rights:

                  (a) the right to exercise the conversion and continuation
         options pursuant to Section 3.8 of the Trust Agreement;

                  (b) the right to receive any notice and any certificate, in
         each case issued pursuant to Section 3.9(a) of the Trust Agreement;

                  (c) the right to replace any Holder pursuant to Section 3.9(b)
         of the Trust Agreement;

                  (d) the right to exercise the removal options contained in
         Section 9.1 of the Trust Agreement; provided, however, that no removal
         of the Owner Trustee and appointment of a successor Owner Trustee by
         the Holders pursuant to Section 9.1 of the Trust Agreement shall be
         made without the prior written consent (not to be unreasonably withheld
         or delayed) of the Lessee.

                        SECTION 10. TRANSFER OF INTEREST.

         10.1.    RESTRICTIONS ON TRANSFER.
                  ------------------------

         Each Lender may participate, assign or transfer all or a portion of its
interest hereunder and under the other Operative Agreements in accordance with
Sections 9.7 and 9.8 of the Credit Agreement; provided, each participant,
assignee or transferee must obtain the same ratable interest in Tranche A Loans,
Tranche A Commitments, Tranche B Loans and Tranche B Commitments (and to the
extent the selling Lender is also a Holder (or an Affiliate of a Holder), each
such participant, assignor or transferee must also obtain the same ratable
interest in and to the Holder Advances, Holder Commitments and the Trust
Estate); provided, further, that each Lender that participates, assigns or
transfers all or a portion of its interest hereunder and under the other
Operative Agreements shall deliver to the Agent a copy of each participation
agreement in form and substance reasonably satisfactory to the Agent (in the
case of a participation) and a copy of each Assignment and Acceptance (as
referenced in Section 9.8 of the Credit Agreement, in the case of an assignment
or other transfer) for purposes of maintaining the Register. The Holders may,
directly or indirectly, assign, convey or otherwise transfer any of their right,
title or interest in or to the Trust Estate or the Trust Agreement in accordance
with the terms of Section 11.8(b) of the Trust Agreement; provided, to the
extent the selling Holder is also a Lender (or an Affiliate of a Lender), each
such assignee, receiver of a conveyance or other transferee must also obtain the
same ratable interest in and to the Tranche A Loans, Tranche A Commitments,
Tranche B Loans and Tranche B Commitments. The Owner Trustee may, subject to the
rights of the Lessee under the Lease and the other Operative Agreements and to
the Lien of the applicable Security Documents but only with the prior written
consent of the Agent (which consent may be withheld by the Agent in its sole
discretion) and (provided, no Default or Event of Default has occurred and is
continuing) with the consent of the Lessee, directly or indirectly, assign,
convey, appoint an agent with respect to enforcement of, or otherwise transfer

                                       45
<PAGE>

any of its right, title or interest in or to any Property, the Lease, the Trust
Agreement and the other Operative Agreements (including without limitation any
right to indemnification thereunder), or any other document relating to a
Property or any interest in a Property as provided in the Trust Agreement and
the Lease. The provisions of the immediately preceding sentence shall not apply
to the obligations of the Owner Trustee to transfer Property to the Lessee or a
third party purchaser pursuant to Article XXII of the Lease upon payment for
such Property in accordance with the terms and conditions of the Lease. No
Credit Party may assign any of the Operative Agreements or any of their
respective rights or obligations thereunder or with respect to any Property in
whole or in part to any Person without the prior written consent of the Agent,
the Lenders, the Holders, the Lessor and the Lessee.

         10.2.    EFFECT OF TRANSFER.
                  ------------------

         From and after any transfer effected in accordance with this Section
10, the transferor shall be released, to the extent of such transfer, from its
liability hereunder and under the other documents to which it is a party in
respect of obligations to be performed on or after the date of such transfer;
provided, however, that any transferor shall remain liable hereunder and under
such other documents to the extent that the transferee shall not have assumed
the obligations of the transferor thereunder. Upon any transfer by the Owner
Trustee, a Holder or a Lender as above provided, any such transferee shall
assume the obligations of the Owner Trustee, the Holder or the Lender, as the
case may be, and shall be deemed an "Owner Trustee", "Holder", or "Lender", as
the case may be, for all purposes of such documents and each reference herein to
the transferor shall thereafter be deemed a reference to such transferee for all
purposes, except as provided in the preceding sentence. Notwithstanding any
transfer of all or a portion of the transferor's interest as provided in this
Section 10, the transferor shall be entitled to all benefits accrued and all
rights vested prior to such transfer including without limitation rights to
indemnification under any such document.

                          SECTION 11. INDEMNIFICATION.

         11.1.    GENERAL INDEMNITY.
                  -----------------

         Subject to the provisions of Section 11.7, whether or not any of the
transactions contemplated hereby shall be consummated, the Indemnity Provider
hereby assumes liability for and agrees to defend, indemnify and hold harmless
each Indemnified Person on an After Tax Basis from and against any Claims, which
may be imposed on, incurred by or asserted against an Indemnified Person by any
third party, including without limitation Claims arising from the negligence of
an Indemnified Person (but not to the extent such Claims arise from the gross
negligence or willful misconduct of such Indemnified Person itself, as
determined by a court of competent jurisdiction, as opposed to gross negligence
or willful misconduct imputed to such Indemnified Person) in any way relating to
or arising or alleged to arise out of the execution, delivery, performance or
enforcement of this Agreement, the Lease or any other Operative Agreement or on
or with respect to any Property or any component thereof, including without
limitation Claims in any way relating to or arising or alleged to arise out of
(a) the financing, refinancing, purchase, acceptance, rejection, ownership,
design, construction, refurbishment, development, delivery, acceptance,

                                       46
<PAGE>

nondelivery, leasing, subleasing, possession, use, occupancy, operation,
maintenance repair, modification, transportation, condition, sale, return,
repossession (whether by summary proceedings or otherwise), or any other
disposition of any Property or any part thereof, including without limitation
the acquisition, holding or disposition of any interest in the Property, lease
or agreement comprising a portion of any thereof; (b) any latent or other
defects in any Property or any portion thereof whether or not discoverable by an
Indemnified Person or the Indemnity Provider; (c) a violation of Environmental
Laws, Environmental Claims or other loss of or damage to any property or the
environment relating to the Property, the Lease, the Agency Agreement or the
Indemnity Provider; (d) the Operative Agreements, or any transaction
contemplated thereby; (e) any breach by the Indemnity Provider of any of its
representations or warranties under the Operative Agreements to which the
Indemnity Provider is a party or failure by the Indemnity Provider to perform or
observe any covenant or agreement to be performed by it under any of the
Operative Agreements; (f) the transactions contemplated hereby or by any other
Operative Agreement, in respect of the application of Parts 4 and 5 of Subtitle
B of Title I of ERISA; (g) personal injury, death or property damage, including
without limitation Claims based on strict or absolute liability in tort; and (h)
any fees, expenses and/or other assessments by any business park or any other
applicable entity with oversight responsibility for the applicable Property.

         If a written Claim is made against any Indemnified Person or if any
proceeding shall be commenced against such Indemnified Person (including without
limitation a written notice of such proceeding), for any Claim, such Indemnified
Person shall promptly notify the Indemnity Provider in writing and shall not
take action with respect to such Claim without the consent of the Indemnity
Provider for thirty (30) days after the receipt of such notice by the Indemnity
Provider; provided, however, that in the case of any such Claim, if action shall
be required by law or regulation to be taken prior to the end of such period of
thirty (30) days, such Indemnified Person shall endeavor to, in such notice to
the Indemnity Provider, inform the Indemnity Provider of such shorter period,
and no action shall be taken with respect to such Claim without the consent of
the Indemnity Provider before seven (7) days before the end of such shorter
period; provided, further, that the failure of such Indemnified Person to give
the notices referred to in this sentence shall not diminish the Indemnity
Provider's obligation hereunder except to the extent such failure precludes in
all respects the Indemnity Provider from contesting such Claim.

         If, within thirty (30) days of receipt of such notice from the
Indemnified Person (or such shorter period as the Indemnified Person has
notified the Indemnity Provider is required by law or regulation for the
Indemnified Person to respond to such Claim), the Indemnity Provider shall
request in writing that such Indemnified Person respond to such Claim, the
Indemnified Person shall, at the expense of the Indemnity Provider, in good
faith conduct and control such action (including without limitation by pursuit
of appeals) (provided, however, that (A) if such Claim, in the Indemnity
Provider's reasonable discretion, can be pursued by the Indemnity Provider on
behalf of or in the name of such Indemnified Person, the Indemnified Person, at
the Indemnity Provider's request, shall allow the Indemnity Provider to conduct
and control the response to such Claim and (B) in the case of any Claim (and
notwithstanding the provisions of the foregoing subsection (A)), the Indemnified
Person may request the Indemnity Provider to conduct and control the response to
such Claim (with counsel to be selected by the Indemnity Provider and consented
to by such Indemnified Person, such consent not to be unreasonably withheld;

                                       47
<PAGE>

provided, however, that any Indemnified Person may retain separate counsel at
the expense of the Indemnity Provider in the event of a conflict of interest
between such Indemnified Person and the Indemnity Provider)) by, in the sole
discretion of the Person conducting and controlling the response to such Claim
(1) resisting payment thereof, (2) not paying the same except under protest, if
protest is necessary and proper, (3) if the payment be made, using reasonable
efforts to obtain a refund thereof in appropriate administrative and judicial
proceedings, or (4) taking such other action as is reasonably requested by the
Indemnity Provider from time to time.

         The party controlling the response to any Claim shall consult in good
faith with the non-controlling party and shall keep the non-controlling party
reasonably informed as to the conduct of the response to such Claim; provided,
that all decisions ultimately shall be made in the discretion of the controlling
party. The parties agree that an Indemnified Person may at any time decline to
take further action with respect to the response to such Claim and may settle
such Claim if such Indemnified Person shall waive its rights to any indemnity
from the Indemnity Provider that otherwise would be payable in respect of such
Claim (and any future Claim, the pursuit of which is precluded by reason of such
resolution of such Claim) and shall pay to the Indemnity Provider any amount
previously paid or advanced by the Indemnity Provider pursuant to this Section
11.1 by way of indemnification or advance for the payment of an amount regarding
such Claim.

         Notwithstanding the foregoing provisions of this Section 11.1, an
Indemnified Person shall not be required to take any action and the Indemnity
Provider shall not be permitted to respond to any Claim in its own name or that
of the Indemnified Person unless (A) the Indemnity Provider shall have agreed to
pay and shall pay to such Indemnified Person on demand and on an After Tax Basis
all reasonable costs, losses and expenses that such Indemnified Person actually
incurs in connection with such Claim, including without limitation all
reasonable legal, accounting and investigatory fees and disbursements and the
Indemnity Provider shall have agreed that the Claim is an indemnifiable Claim
hereunder, (B) in the case of a Claim that must be pursued in the name of an
Indemnified Person (or an Affiliate thereof), the amount of the potential
indemnity (taking into account all similar or logically related Claims that have
been or could be raised for which the Indemnity Provider may be liable to pay an
indemnity under this Section 11.1) exceeds $25,000 (or such lesser amount as may
be subsequently agreed between the Indemnity Provider and the Indemnified
Person), (C) the Indemnified Person shall have reasonably determined that the
action to be taken will not result in any material danger of sale, forfeiture or
loss of the Property, or any part thereof or interest therein, will not
interfere with the payment of Rent, and will not result in risk of criminal
liability, (D) if such Claim shall involve the payment of any amount prior to
the resolution of such Claim, the Indemnity Provider shall provide to the
Indemnified Person an interest-free advance in an amount equal to the amount
that the Indemnified Person is required to pay (with no additional net after-tax
cost to such Indemnified Person) prior to the date such payment is due, (E) in
the case of a Claim that must be pursued in the name of an Indemnified Person
(or an Affiliate thereof), the Indemnity Provider shall have provided to such
Indemnified Person an opinion of independent counsel selected by the Indemnity
Provider and reasonably satisfactory to the Indemnified Person stating that a
reasonable basis exists to contest such Claim (or, in the case of an appeal of
an adverse determination, an opinion of such counsel to the effect that the

                                       48
<PAGE>

position asserted in such appeal will more likely than not prevail) and (F) no
Event of Default shall have occurred and be continuing. In no event shall an
Indemnified Person be required to appeal an adverse judicial determination to
the United States Supreme Court. In addition, an Indemnified Person shall not be
required to contest any Claim in its name (or that of an Affiliate) if the
subject matter thereof shall be of a continuing nature and shall have previously
been decided adversely by a court of competent jurisdiction pursuant to the
contest provisions of this Section 11.1, unless there shall have been a change
in law (or interpretation thereof) and the Indemnified Person shall have
received, at the Indemnity Provider's expense, an opinion of independent counsel
selected by the Indemnity Provider and reasonably acceptable to the Indemnified
Person stating that as a result of such change in law (or interpretation
thereof), it is more likely than not that the Indemnified Person will prevail in
such contest. In no event shall the Indemnity Provider be permitted to adjust or
settle any Claim without the consent of the Indemnified Person to the extent any
such adjustment or settlement involves, or is reasonably likely to involve, any
performance by or adverse admission by or with respect to the Indemnified
Person.

         11.2.    GENERAL TAX INDEMNITY.
                  ---------------------

                  Subject to the provisions of Section 11.7:

                  (a) The Indemnity Provider shall pay and assume liability for,
         and does hereby agree to indemnify, protect and defend each Property
         and all Indemnified Persons, and hold them harmless against, all
         Impositions on an After Tax Basis, and all payments pursuant to the
         Operative Agreements shall be made free and clear of and without
         deduction for any and all present and future Impositions.

                  (b) Notwithstanding anything to the contrary in Section
         11.2(a) hereof, the following shall be excluded from the indemnity
         required by Section 11.2(a):

                           (i) Taxes (other than Taxes that are, or are in the
                  nature of, sales, use, rental, value added, transfer or
                  property taxes) that are imposed on a Indemnified Person
                  (other than the Lessor, the Owner Trustee and the Trust) by
                  the United States federal government that are based on or
                  measured by the net income (including without limitation taxes
                  based on capital gains and minimum taxes) of such Person;
                  provided, that this clause (i) shall not be interpreted to
                  prevent a payment from being made on an After Tax Basis if
                  such payment is otherwise required to be so made;

                           (ii) Taxes (other than Taxes that are, or are in the
                  nature of, sales, use, rental, value added, transfer or
                  property taxes) that are imposed on any Indemnified Person
                  (other than the Lessor, the Owner Trustee and the Trust) by
                  any state or local jurisdiction or taxing authority within any
                  state or local jurisdiction and that are based upon or
                  measured by the net income (including without limitation taxes
                  based on capital gains and minimum taxes) of such Person;
                  provided that such Taxes shall not be excluded under this
                  subparagraph (ii) to the extent such Taxes would have been
                  imposed had the location, possession or use of any Property
                  in, the location or the operation of the Lessee in, or the

                                       49
<PAGE>

                  Lessee's making payments under the Operative Agreements from,
                  the jurisdiction imposing such Taxes been the sole connection
                  between such Indemnified Person and the jurisdiction imposing
                  such Taxes; provided, further, that this clause (ii) shall not
                  be interpreted to prevent a payment from being made on an
                  After Tax Basis if such payment is otherwise required to be so
                  made;

                           (iii) any Tax to the extent it relates to any act,
                  event or omission that occurs after the termination of the
                  Lease and redelivery or sale of the Property in accordance
                  with the terms of the Lease (but not any Tax that relates to
                  such termination, redelivery or sale and/or to any period
                  prior to such termination, redelivery or sale); and

                           (iv) any Taxes which are imposed on an Indemnified
                  Person as a result of the gross negligence or willful
                  misconduct of such Indemnified Person itself, as determined by
                  a court of competent jurisdiction (as opposed to gross
                  negligence or willful misconduct imputed to such Indemnified
                  Person), but not Taxes imposed as a result of ordinary
                  negligence of such Indemnified Person;

                  (c) (i) Subject to the terms of Section 11.2(f), the Indemnity
                  Provider shall pay or cause to be paid all Impositions
                  directly to the taxing authorities where feasible and
                  otherwise to the Indemnified Person, as appropriate, and the
                  Indemnity Provider shall at its own expense, upon such
                  Indemnified Person's reasonable request, furnish to such
                  Indemnified Person copies of official receipts or other
                  satisfactory proof evidencing such payment.

                           (ii) In the case of Impositions for which no contest
                  is conducted pursuant to Section 11.2(f) and which the
                  Indemnity Provider pays directly to the taxing authorities,
                  the Indemnity Provider shall pay such Impositions prior to the
                  latest time permitted by the relevant taxing authority for
                  timely payment. In the case of Impositions for which the
                  Indemnity Provider reimburses an Indemnified Person, the
                  Indemnity Provider shall do so within thirty (30) days after
                  receipt by the Indemnity Provider of demand by such
                  Indemnified Person describing in reasonable detail the nature
                  of the Imposition and the basis for the demand (including
                  without limitation the computation of the amount payable),
                  accompanied by receipts or other reasonable evidence of such
                  demand. In the case of Impositions for which a contest is
                  conducted pursuant to Section 11.2(f), the Indemnity Provider
                  shall pay such Impositions or reimburse such Indemnified
                  Person for such Impositions, to the extent not previously paid
                  or reimbursed pursuant to subsection (a), prior to the latest
                  time permitted by the relevant taxing authority for timely
                  payment after conclusion of all contests under Section
                  11.2(f).

                           (iii) At the Indemnity Provider's request, the amount
                  of any indemnification payment by the Indemnity Provider
                  pursuant to subsection (a) shall be verified and certified by
                  an independent public accounting firm mutually acceptable to
                  the Indemnity Provider and the Indemnified Person. The fees

                                       50
<PAGE>

                  and expenses of such independent public accounting firm shall
                  be paid by the Indemnity Provider unless such verification
                  shall result in an adjustment in the Indemnity Provider's
                  favor of fifteen percent (15%) or more of the payment as
                  computed by the Indemnified Person, in which case such fee
                  shall be paid by the Indemnified Person.

                  (d) The Indemnity Provider shall be responsible for preparing
         and filing any real and personal property or ad valorem tax returns in
         respect of each Property and any other tax returns required for the
         Owner Trustee respecting the transactions described in the Operative
         Agreements. In case any other report or tax return shall be required to
         be made with respect to any obligations of the Indemnity Provider under
         or arising out of subsection (a) and of which the Indemnity Provider
         has knowledge or should have knowledge, the Indemnity Provider, at its
         sole cost and expense, shall notify the relevant Indemnified Person of
         such requirement and (except if such Indemnified Person notifies the
         Indemnity Provider that such Indemnified Person intends to prepare and
         file such report or return) (A) to the extent required or permitted by
         and consistent with Legal Requirements, make and file in the Indemnity
         Provider's name such return, statement or report; and (B) in the case
         of any other such return, statement or report required to be made in
         the name of such Indemnified Person, advise such Indemnified Person of
         such fact and prepare such return, statement or report for filing by
         such Indemnified Person or, where such return, statement or report
         shall be required to reflect items in addition to any obligations of
         the Indemnity Provider under or arising out of subsection (a), provide
         such Indemnified Person at the Indemnity Provider's expense with
         information sufficient to permit such return, statement or report to be
         properly made with respect to any obligations of the Indemnity Provider
         under or arising out of subsection (a). Such Indemnified Person shall,
         upon the Indemnity Provider's request and at the Indemnity Provider's
         expense, provide any data maintained by such Indemnified Person (and
         not otherwise available to or within the control of the Indemnity
         Provider) with respect to each Property which the Indemnity Provider
         may reasonably require to prepare any required tax returns or reports.

                  (e) As between the Indemnity Provider on one hand, and each
         Financing Party on the other hand, the Indemnity Provider shall be
         responsible for, and the Indemnity Provider shall indemnify and hold
         harmless each Financing Party (without duplication of any
         indemnification required by subsection (a)) on an After Tax Basis
         against, any obligation for United States or foreign withholding taxes
         or similar levies, imposts, charges, fees, deductions or withholdings
         (collectively, "Withholdings") imposed in respect of the interest
         payable on the Notes, Holder Yield payable on the Certificates or with
         respect to any other payments under the Operative Agreement (all such
         payments being referred to herein as "Exempt Payments" to be made
         without deduction, withholding or set off) (and, if any Financing Party
         receives a demand for such payment from any taxing authority or a
         Withholding is otherwise required with respect to any Exempt Payment,
         the Indemnity Provider shall discharge such demand on behalf of such
         Financing Party); provided, however, that the obligation of the
         Indemnity Provider under this Section 11.2(e) shall not apply to:

                                       51
<PAGE>

                           (i) Withholdings on any Exempt Payment to any
                  Financing Party which is a non-U.S. Person unless such
                  Financing Party is, on the date hereof (or on the date it
                  becomes a Financing Party hereunder) and on the date of any
                  change in the principal place of business or the lending
                  office of such Financing Party, entitled to submit a W-8BEN or
                  W-8ECI (relating to such Financing Party and entitling it to a
                  complete exemption from Withholding on such Exempt Payment) or
                  is otherwise subject to exemption from Withholding with
                  respect to such Exempt Payment (except where the failure of
                  the exemption results from a change in the principal place of
                  business of the Lessee; provided if a failure of exemption for
                  any Financing Party results from a change in the principal
                  place of business or lending office of any other Financing
                  Party, then such other Financing Party shall be liable for any
                  Withholding or indemnity with respect thereto), or

                           (ii) Any U.S. Taxes imposed solely by reason of the
                  failure by a non-U.S. Person to comply with applicable
                  certification, information, documentation or other reporting
                  requirements concerning the nationality, residence, identity
                  or connections with the United States of America of such
                  non-U.S. Person if such compliance is required by statute or
                  regulation of the United States of America as a precondition
                  to relief or exemption from such U.S. Taxes.

         For the purposes of this Section 11.2(e), (A) "U.S. Person" shall mean
         a citizen, national or resident of the United States of America, a
         corporation, partnership or other entity created or organized in or
         under any laws of the United States of America or any State thereof, or
         any estate or trust that is subject to Federal income taxation
         regardless of the source of its income, (B) "U.S. Taxes" shall mean any
         present or future tax, assessment or other charge or levy imposed by or
         on behalf of the United States of America or any taxing authority
         thereof or therein, (C) "Form W-8BEN" shall mean Form W-8BEN
         (Certificate of Foreign Status of Beneficial Owner for United States
         Tax Withholdings) of the Department of the Treasury of the United
         States of America and (D) "Form W-8ECI" shall mean Form W-8ECI
         (Certificate of Foreign Person's Claim for Exemption from Withholding
         of Tax on Income Effectively Connected with the Conduct of a Trade or
         Business in the United States) of the Department of Treasury of the
         United States of America (or in relation to either such Form such
         successor and related forms as may from time to time be adopted by the
         relevant taxing authorities of the United States of America to document
         a claim to which such Form relates). Each of the Forms referred to in
         the foregoing clauses (C) and (D) shall include such successor and
         related forms as may from time to time be adopted by the relevant
         taxing authorities of the United States of America to document a claim
         to which such Form relates.

                  If a Financing Party or an Affiliate with whom such Financing
         Party files a consolidated tax return (or equivalent) subsequently
         receives the benefit in any country of a tax credit or an allowance
         resulting from U.S. Taxes with respect to which it has received a
         payment of an additional amount under this Section 11.2(e), such
         Financing Party will pay to the Indemnity Provider such part of that
         benefit as in the opinion of such Financing Party will leave it (after
         such payment) in a position no more and no less favorable than it would
         have been in if no additional payment had been required to be paid,

                                       52
<PAGE>

         provided always that (i) such Financing Party will be the sole judge of
         the amount of any such benefit and of the date on which it is received,
         (ii) such Financing Party will have the absolute discretion as to the
         order and manner in which it employs or claims tax credits and
         allowances available to it and (iii) such Financing Party will not be
         obliged to disclose to the Borrower any information regarding its tax
         affairs or tax computations.

                  Each non-U.S. Person that shall become a Financing Party after
         the date hereof shall, upon the effectiveness of the related transfer
         or otherwise upon becoming a Financing Party hereunder, be required to
         provide all of the forms and statements referenced above or other
         evidences of exemption from Withholdings.

                  (f) If a written Claim is made against any Indemnified Person
         or if any proceeding shall be commenced against such Indemnified Person
         (including without limitation a written notice of such proceeding), for
         any Impositions, the provisions in Section 11.1 relating to
         notification and rights to contest shall apply; provided, however, that
         the Indemnity Provider shall have the right to conduct and control such
         contest only if such contest involves a Tax other than a Tax on net
         income of the Indemnified Person and can be pursued independently from
         any other proceeding involving a Tax liability of such Indemnified
         Person.

         11.3.    INCREASED COSTS, ILLEGALITY, ETC.
                  --------------------------------

         Subject to the provisions of Section 11.7:

                  (a) If, due to either (i) the introduction of or any change in
         or in the interpretation of any law or regulation or (ii) the
         compliance with any guideline or request hereafter adopted, promulgated
         or made by any central bank or other governmental authority (whether or
         not having the force of law), there shall be any increase in the cost
         to any Financing Party of agreeing to make or making, funding or
         maintaining Advances, then the Lessee shall from time to time, upon
         demand by such Financing Party (with a copy of such demand to the Agent
         but subject to the terms of Section 2.11 of the Credit Agreement and
         3.9 of the Trust Agreement, as the case may be), pay to the Agent for
         the account of such Financing Party additional amounts sufficient to
         compensate such Financing Party for such increased cost. A certificate
         as to the amount of such increased cost, submitted to the Lessee and
         the Agent by such Financing Party, shall be conclusive and binding for
         all purposes, absent manifest error.

                  (b) If any Financing Party determines that compliance with any
         law or regulation or any guideline or request from any central bank or
         other governmental authority (whether or not having the force of law,
         but in each case promulgated or made after the date hereof) affects or
         would affect the amount of capital required or expected to be
         maintained by such Financing Party or any corporation controlling such
         Financing Party and that the amount of such capital is increased by or
         based upon the existence of such Financing Party's commitment to make
         Advances and other commitments of this type or upon the Advances, then,
         upon demand by such Financing Party (with a copy of such demand to the
         Agent but subject to the terms of Section 2.11 of the Credit Agreement

                                       53
<PAGE>

         and 3.9 of the Trust Agreement), the Lessee shall pay to the Agent for
         the account of such Financing Party, from time to time as specified by
         such Financing Party, additional amounts sufficient to compensate such
         Financing Party or such corporation in the light of such circumstances,
         to the extent that such Financing Party reasonably determines such
         increase in capital to be allocable to the existence of such Financing
         Party's commitment to make such Advances. A certificate as to such
         amounts submitted to the Lessee and the Agent by such Financing Party
         shall be conclusive and binding for all purposes, absent manifest
         error.

                  (c) Without affecting its rights under Sections 11.3(a),
         11.3(b) or any other provision of any Operative Agreement, each
         Financing Party agrees that if there is any increase in any cost to or
         reduction in any amount receivable by such Financing Party with respect
         to which the Lessee would be obligated to compensate such Financing
         Party pursuant to Sections 11.3(a) or 11.3(b), such Financing Party
         shall use reasonable efforts to select an alternative office for
         Advances which would not result in any such increase in any cost to or
         reduction in any amount receivable by such Financing Party; provided,
         however, that no Financing Party shall be obligated to select an
         alternative office for Advances if such Financing Party determines that
         (i) as a result of such selection such Financing Party would be in
         violation of any applicable law, regulation, treaty, or guideline, or
         would incur additional costs or expenses or (ii) such selection would
         be inadvisable for regulatory reasons or materially inconsistent with
         the interests of such Financing Party.

                  (d) With reference to the obligations of the Lessee set forth
         in Sections 11.3(a) through 11.3(c), the Lessee shall not have any
         obligation to pay to any Financing Party amounts owing under such
         Sections for any period which is more than one (1) year prior to the
         date upon which the request for payment therefor is delivered to the
         Lessee.

                  (e) Notwithstanding any other provision of this Agreement, if
         any Financing Party shall notify the Agent that the introduction of or
         any change in or in the interpretation of any law or regulation makes
         it unlawful, or any central bank or other governmental authority
         asserts that it is unlawful, for any Financing Party to perform its
         obligations hereunder to make or maintain Eurodollar Loans or
         Eurodollar Holder Advances, as the case may be, then (i) each
         Eurodollar Loan or Eurodollar Holder Advance, as the case may be, will
         automatically, at the earlier of the end of the Interest Period for
         such Eurodollar Loan or Eurodollar Holder Advance, as the case may be,
         or the date required by law, convert into an ABR Loan or an ABR Holder
         Advance, as the case may be, and (iii) the obligation of the Financing
         Parties to make, convert or continue Eurodollar Loans or Eurodollar
         Holder Advances, as the case may be, shall be suspended until the Agent
         shall notify the Lessee that such Financing Party has determined that
         the circumstances causing such suspension no longer exist.

         11.4.    FUNDING/CONTRIBUTION INDEMNITY.
                  ------------------------------

         Subject to the provisions of Section 11.7 hereof, Section 2.11(a) of
the Credit Agreement and 3.9(a) of the Trust Agreement, as the case may be, the
Lessee agrees to indemnify each Financing Party and to hold each Financing Party

                                       54
<PAGE>

harmless from any loss or reasonable expense which such Financing Party may
sustain or incur as a consequence of (a) any default in connection with the
drawing of funds for any Advance, (b) any default in making any prepayment after
a notice thereof has been given in accordance with the provisions of the
Operative Agreements or (c) the making of a voluntary or involuntary payment of
Eurodollar Loans or Eurodollar Holder Advances, as the case may be, on a day
which is not the last day of an Interest Period with respect thereto. Such
indemnification shall be in an amount equal to the excess, if any, of (x) the
amount of interest or Holder Yield, as the case may be, which would have accrued
on the amount so paid, or not so borrowed, accepted, converted or continued for
the period from the date of such payment or of such failure to borrow, accept,
convert or continue to the last day of such Interest Period (or, in the case of
a failure to borrow, accept, convert or continue, the Interest Period that would
have commenced on the date of such failure) in each case at the applicable
Eurodollar Rate plus the Applicable Percentage for such Loan or Holder Advance,
as the case may be, for such Interest Period over (y) the amount of interest (as
determined by such Financing Party in its reasonable discretion) which would
have accrued to such Financing Party on such amount by (i) (in the case of the
Lenders) reemploying such funds in loans of the same type and amount during the
period from the date of payment or failure to borrow to the last day of the then
applicable Interest Period (or, in the case of a failure to borrow, the Interest
Period that would have commenced on the date of such failure) and (ii) (in the
case of the Holders) placing such amount on deposit for a comparable period with
leading banks in the relevant interest rate market. This covenant shall survive
the termination of the Operative Agreements and the payment of all other amounts
payable hereunder.

         11.5.    EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT
                  -------------------------------------------------------
                  LIABILITY, ETC.
                  --------------

         SUBJECT TO THE PROVISIONS OF SECTION 11.7, WITHOUT LIMITING THE
GENERALITY OF THE INDEMNIFICATION PROVISIONS OF ANY AND ALL OF THE OPERATIVE
AGREEMENTS, EACH PERSON PROVIDING INDEMNIFICATION OF ANOTHER PERSON UNDER ANY
OPERATIVE AGREEMENT HEREBY FURTHER EXPRESSLY RELEASES EACH BENEFICIARY OF ANY
SUCH INDEMNIFICATION FROM ALL CLAIMS FOR LOSS OR DAMAGE, DESCRIBED IN ANY
OPERATIVE AGREEMENT, CAUSED BY ANY ACT OR OMISSION ON THE PART OF ANY SUCH
BENEFICIARY ATTRIBUTABLE TO THE ORDINARY NEGLIGENCE (WHETHER SOLE OR
CONTRIBUTORY) OR STRICT LIABILITY OF ANY SUCH BENEFICIARY, AND INDEMNIFIES,
EXONERATES AND HOLDS EACH SUCH BENEFICIARY FREE AND HARMLESS FROM AND AGAINST
ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, CLAIMS, LOSSES, COSTS,
LIABILITIES, DAMAGES AND EXPENSES (INCLUDING WITHOUT LIMITATION ATTORNEY'S FEES
AND EXPENSES), DESCRIBED ABOVE, INCURRED BY ANY SUCH BENEFICIARY (IRRESPECTIVE
OF WHETHER ANY SUCH BENEFICIARY IS A PARTY TO THE ACTION FOR WHICH
INDEMNIFICATION UNDER THIS AGREEMENT OR ANY OTHER OPERATIVE AGREEMENT IS SOUGHT)
ATTRIBUTABLE TO THE ORDINARY NEGLIGENCE (WHETHER SOLE OR CONTRIBUTORY) OR STRICT
LIABILITY OF ANY SUCH BENEFICIARY.

                                       55
<PAGE>

         11.6.    ADDITIONAL PROVISIONS REGARDING ENVIRONMENTAL INDEMNIFICATION.
                  -------------------------------------------------------------

         Each and every Indemnified Person shall at all times have the rights
and benefits, and the Indemnity Provider shall have the obligations, in each
case provided pursuant to the Operative Agreements with respect to environmental
matters, violations of any Environmental Law, any Environmental Claim or other
loss of or damage to any property or the environment relating to any Property,
the Lease, the Agency Agreement or the Indemnity Provider (including without
limitation the rights and benefits provided pursuant to Section 11.1(c)).

         11.7.    INDEMNITY PRIOR TO COMPLETION DATE.
                  ----------------------------------

         The Owner Trustee shall be the only beneficiary of the provisions set
forth in Sections 11.1, 11.2, 11.3, 11.4 and 11.5 with respect to any Claim
arising thereunder for the period prior to the Completion Date related to the
applicable Property. Notwithstanding the foregoing, to the extent that the Owner
Trustee becomes obligated to any Indemnified Person pursuant to the next
succeeding paragraph of Section 11.7, the Owner Trustee shall only be obligated
to make such payments to the extent the Lenders and Holders make Advances for
such payments, provided, no Requisition shall be required for the Lenders and
Holders to make such payments. To the extent any such Claim arising pursuant to
Section 11.1 does not arise in connection with any Construction Agency Person's
acts or a failure to act while any Construction Agency Person is in possession
or control of the applicable Construction Period Property, then amounts paid by
Advances prior to the Completion Date for such Claim shall be an Excluded Cost
(such amounts paid shall be referred to as the "Excluded Indemnity Amount").

         To the extent the Indemnity Provider is not obligated to indemnify any
Indemnified Person with respect to Claims arising under Sections 11.1, 11.2,
11.3, 11.4 or 11.5, prior to the Completion Date related to the applicable
Property, the Owner Trustee shall provide such indemnities in favor of such
Indemnified Person in accordance with the relevant provisions of Sections 11.1,
11.2, 11.3, 11.4 or 11.5 as the case may be, but the Owner Trustee shall only be
obligated to make such payments to the extent the Lenders and Holders make
Advances for such payments, provided, no Requisition shall be required for the
Lenders and Holders to make such payments.

         THE INDEMNITY OBLIGATIONS UNDERTAKEN BY THE OWNER TRUSTEE PURSUANT TO
THIS SECTION 11.7 ARE IN ALL RESPECTS SUBJECT TO THE LIMITATIONS ON LIABILITY
REFERENCED IN SECTION 12.9.

                           SECTION 12. MISCELLANEOUS.

         12.1.    SURVIVAL OF AGREEMENTS.
                  ----------------------

         The representations, warranties, covenants, indemnities and agreements
of the parties provided for in the Operative Agreements, and the parties'
obligations under any and all thereof, shall survive the execution and delivery
of this Agreement, the transfer of any Property to the Owner Trustee, the

                                       56
<PAGE>

acquisition of any Property (or any of its components), the construction of any
Improvements, the Completion of any Property, any disposition of any interest of
the Owner Trustee in any Property or any interest of the Holders in the Trust
Estate, the payment of the Notes and any disposition thereof and shall be and
continue in effect notwithstanding any investigation made by any party and the
fact that any party may waive compliance with any of the other terms, provisions
or conditions of any of the Operative Agreements. Except as otherwise expressly
set forth herein or in other Operative Agreements, the indemnities of the
parties provided for in the Operative Agreements shall survive the expiration or
termination of one or more Operative Agreements.

         12.2.    NOTICES.
                  -------

         All notices required or permitted to be given under any Operative
Agreement shall be in writing. Notices may be served by certified or registered
mail, postage paid with return receipt requested; by private courier, prepaid;
by telex, facsimile, or other telecommunication device capable of transmitting
or creating a written record; or personally. Mailed notices shall be deemed
delivered five (5) days after mailing, properly addressed. Couriered notices
shall be deemed delivered when delivered as addressed, or if the addressee
refuses delivery, when presented for delivery notwithstanding such refusal.
Telex or telecommunicated notices shall be deemed delivered when receipt is
either confirmed by confirming transmission equipment or acknowledged by the
addressee or its office. Personal delivery shall be effective when accomplished.
Unless a party changes its address by giving notice to the other party as
provided herein, notices shall be delivered to the parties at the following
addresses:

                  If to the Construction Agent or the Lessee, to such entity at
the following address:

                           HEALTHSOUTH Medical Center, Inc.
                           One HealthSouth Parkway
                           Birmingham, Alabama 35243
                           Attention: Malcolm E. McVay
                           Telephone: (205) 969-6140
                           Telecopy:  (205) 969-4620

                  With a copy to:

                           HEALTHSOUTH Medical Center, Inc.
                           One HealthSouth Parkway
                           Birmingham, Alabama 35243
                           Attention: William W. Horton
                           Telephone: (205) 969-4977
                           Telecopy:  (205) 969-4730

                                       57
<PAGE>

                  If to the Guarantor, to such entity at the following address:

                           HEALTHSOUTH Corporation
                           One HealthSouth Parkway
                           Birmingham, Alabama 35243
                           Attention: Malcolm E. McVay
                           Telephone: (205) 969-6140
                           Telecopy:  (205) 969-4620

                  With a copy to:

                           HEALTHSOUTH Corporation
                           One HealthSouth Parkway
                           Birmingham, Alabama 35243
                           Attention: William W. Horton
                           Telephone: (205) 969-4977
                           Telecopy:  (205) 969-4730

                  If to the Owner Trustee, to it at the following address:

                           State Street Bank and Trust Company of Connecticut,
                             National Association
                           225 Asylum Street, Goodwin Square
                           Hartford, CT 06103
                           Attention: Corporate Trust Department
                           Telecopy:  (860) 244-1889

                  With a copy to:

                           State Street Bank and Trust Company
                           2 Avenue de Lafayette
                           Boston, MA 02111
                           Attn:  Corporate Trust Department
                           Reference: HealthSouth
                           Telephone: (617) 662-1802
                           Telecopy:  (617) 662-1465
                           E-mail: daibrahim@statestreet.com

                  If to the Holders, to each such Holder at the address set
         forth for such Holder on Schedule I of the Trust Agreement.

                                       58
<PAGE>

                  If to the Agent, to it at the following address:

                           First Union National Bank
                           c/o Wachovia Securities, Inc.
                           301 South College Street, TW-14
                           Charlotte, North Carolina 28288-5604
                           Attention: Gabrielle Altschuler
                           Telephone: (704) 383-1967
                           Telecopy:  (704) 383-8108
                           E-mail: gabrielle.altschuler@wachovia.com

                  If to any Lender, to it at the address set forth for such
         Lender in Schedule 2.1 of the Credit Agreement.

                  From time to time any party may designate additional parties
         and/or another address for notice purposes by notice to each of the
         other parties hereto. Each notice hereunder shall be effective upon
         receipt or refusal thereof.

         12.3.    COUNTERPARTS.
                  ------------

         This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one (1) and the same
instrument.

         12.4.    TERMINATIONS, AMENDMENTS, WAIVERS, ETC.; UNANIMOUS VOTE
                  -------------------------------------------------------
                  MATTERS.
                  -------

         Each Basic Document may be terminated, amended, supplemented, waived or
modified only by an instrument in writing signed by, subject to Article VIII of
the Trust Agreement regarding termination of the Trust Agreement, the Majority
Secured Parties and each Credit Party (to the extent such Credit Party is a
party to such Basic Document); provided, to the extent no Default or Event of
Default shall have occurred and be continuing, the Majority Secured Parties
shall not amend, supplement, waive or modify any provision of any Basic Document
in such a manner as to adversely affect the rights of any Credit Party without
the prior written consent (not to be unreasonably withheld or delayed) of such
Credit Party. Each Operative Agreement which is not a Basic Document may be
terminated, amended, supplemented, waived or modified only by an instrument in
writing signed by the parties thereto and (without the consent of any other
Financing Party) the Agent. In addition, the Unanimous Vote Matters shall
require the consent of each Lender and each Holder affected by such matter. At
no time shall any Credit Party (acting as a Financing Party) have any right to
consent or to withhold consent with regard to any matter concerning any
Operative Agreement.

         Notwithstanding the foregoing, no such termination, amendment,
supplement, waiver or modification shall, without the consent of the Agent and,
to the extent affected thereby, each Lender, except each Credit Party or any of
such Credit Party's Affiliates or assignees who may be a Lender from time to
time, and each Holder (collectively, the "Unanimous Vote Matters") (i) reduce
the Lender Commitments and/or the Holder Commitments (except for a pro-rata

                                       59
<PAGE>

reduction in each such commitment of the Lenders and the Holders or as otherwise
provided in Section 2.5 of the Credit Agreement and Section 3.1(e) of the Trust
Agreement), extend the scheduled date of maturity of any Note, extend the
scheduled Expiration Date, extend the Construction Period Termination Date,
extend any payment date of any Note or Certificate, reduce the stated rate of
interest payable on any Note, reduce the stated Holder Yield payable on any
Certificate (other than as a result of waiving the applicability of any
post-default increase in interest rates or Holder Yields), modify the priority
of any Lien in favor of the Agent under any Security Document, subordinate any
obligation owed to such Lender or Holder, reduce any Lender Unused Fees or any
Holder Unused Fees payable to such Lender or Holder (as the case may be) under
the Participation Agreement, extend the scheduled date of payment of any Lender
Unused Fees or any Holder Unused Fees payable to such Lender or Holder (as the
case may be) or extend the expiration date of such Lender's Commitment or the
Holder Commitment of such Holder, or (ii) terminate, amend, supplement, waive or
modify any provision of this Section 12.4 or reduce the percentages specified in
the definitions of Majority Lenders, Majority Holders or Majority Secured
Parties, or consent to the assignment or transfer by the Owner Trustee of any of
its rights and obligations under any Credit Document or release a material
portion of the Collateral (except in accordance with Section 8.8) or release any
Credit Party from its obligations under any Operative Agreement or otherwise
alter any payment obligations of any Credit Party to the Lessor or any Financing
Party under the Operative Agreements, or (iii) terminate, amend, supplement,
waive or modify any provision of Section 7 of the Credit Agreement, or (iv)
permit Advances for Work in excess of the Construction Budget, or (v) eliminate
the automatic option under Section 5.3(b) of the Agency Agreement requiring that
the Construction Agent pay certain liquidated damages in exchange for the
conveyance of a Property to the Construction Agent. Any such termination,
amendment, supplement, waiver or modification shall apply equally to each of the
Lenders and the Holders and shall be binding upon all the parties to this
Agreement. In the case of any waiver, each party to this Agreement shall be
restored to its former position and rights under the Operative Agreements, and
any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon. The parties to this
Agreement agree that any increase in the Lender Commitments and/or any increase
in the Holder Commitments shall be a matter decided by the Majority Secured
Parties and not as a Unanimous Vote Matter; provided, however, no individual
Lender's Commitment nor any Holder's Holder Commitment shall be increased
without such party's express consent, in each such party's sole discretion.

         If at a time when the conditions precedent set forth in the Operative
Agreements to any Loan are, in the opinion of the Majority Lenders, satisfied,
any Lender shall fail to fulfill its obligations to make such Loan (any such
Lender, a "Defaulting Lender") then, for so long as such failure shall continue,
the Defaulting Lender shall (unless the Lessee and the Majority Lenders,
determined as if the Defaulting Lender were not a "Lender", shall otherwise
consent in writing) be deemed for all purposes relating to terminations,
amendments, supplements, waivers or modifications under the Operative Agreements
to have no Loans, shall not be treated as a "Lender" when performing the
computation of Majority Lenders or Majority Secured Parties, and shall have no
rights under this Section 12.4; provided that any action taken pursuant to the
second paragraph of this Section 12.4 shall not be effective as against the
Defaulting Lender.

                                       60
<PAGE>

         If at a time when the conditions precedent set forth in the Operative
Agreements to any Holder Advance are, in the opinion of the Majority Holders,
satisfied, any Holder shall fail to fulfill its obligations to make such Holder
Advance (any such Holder, a "Defaulting Holder") then, for so long as such
failure shall continue, the Defaulting Holder shall (unless the Lessee and the
Majority Holders, determined as if the Defaulting Holder were not a "Holder",
shall otherwise consent in writing) be deemed for all purposes relating to
terminations, amendments, supplements, waivers or modifications under the
Operative Agreements to have no Holder Advances, shall not be treated as a
"Holder" when performing the computation of Majority Holders or Majority Secured
Parties, and shall have no rights under this Section 12.4; provided that any
action taken pursuant to the second paragraph of this Section 12.4 shall not be
effective as against the Defaulting Holder.

         12.5.    HEADINGS, ETC.
                  -------------

         The Table of Contents and headings of the various Articles and Sections
of this Agreement are for convenience of reference only and shall not modify,
define, expand or limit any of the terms or provisions hereof.

         12.6.    PARTIES IN INTEREST.
                  -------------------

         Except as expressly provided herein, none of the provisions of this
Agreement are intended for the benefit of any Person except the parties hereto.

         12.7.    GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY
                  ---------------------------------------------------------
                  TRIAL; VENUE.
                  ------------

                  (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
         PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND
         ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NORTH
         CAROLINA (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO
         CONFLICTS OF LAW). Any legal action or proceeding with respect to this
         Agreement or any other Operative Agreement may be brought in the courts
         of the State of North Carolina in Mecklenburg County or of the United
         States for the Western District of North Carolina and, by execution and
         delivery of this Agreement, each of the parties to this Agreement
         hereby irrevocably accepts for itself and in respect of its property,
         generally and unconditionally, the nonexclusive jurisdiction of such
         courts. Each of the parties to this Agreement further irrevocably
         consents to the service of process out of any of the aforementioned
         courts in any such action or proceeding by the mailing of copies
         thereof by registered or certified mail, postage prepaid, to it at the
         address set out for notices pursuant to Section 12.2, such service to
         become effective three (3) days after such mailing. Nothing herein
         shall affect the right of any party to serve process in any other
         manner permitted by Law or to commence legal proceedings or to
         otherwise proceed against any party in any other jurisdiction.

                                       61
<PAGE>

                  (b) EACH OF THE PARTIES HERETO IRREVOCABLY AND
         UNCONDITIONALLY, TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW,
         WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO ANY
         DISPUTE OR THIS AGREEMENT, ANY OTHER OPERATIVE AGREEMENT AND FOR ANY
         COUNTERCLAIM THEREIN.

                  (c) Each of the parties to this Agreement hereby irrevocably
         waives any objection which it may now or hereafter have to the laying
         of venue of any of the aforesaid actions or proceedings arising out of
         or in connection with this Agreement or any other Operative Agreement
         brought in the courts referred to in subsection (a) above and hereby
         further irrevocably waives and agrees not to plead or claim in any such
         court that any such action or proceeding brought in any such court has
         been brought in an inconvenient forum.

                  (d) Each party to this Agreement agrees that it shall not have
a remedy of punitive or exemplary damages against any other party in any legal
action or proceeding and hereby waives any right or claim to punitive or
exemplary damages it has now or which may arise in the future in connection with
any legal action or proceeding.

         12.8.    SEVERABILITY.
                  ------------

         Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         12.9.    LIABILITY LIMITED.
                  -----------------

                  (a) The Lenders, the Agent, the Credit Parties, the Owner
         Trustee and the Holders each acknowledge and agree that the Owner
         Trustee is (except as otherwise expressly provided herein or therein)
         entering into this Agreement and the other Operative Agreements to
         which it is a party (other than the Trust Agreement and to the extent
         otherwise provided in Section 6.1 of this Agreement), solely in its
         capacity as trustee under the Trust Agreement and not in its individual
         capacity and that the Trust Company shall not be liable or accountable
         under any circumstances whatsoever in its individual capacity for or on
         account of any statements, representations, warranties, covenants or
         obligations stated to be those of the Owner Trustee, except for its own
         gross negligence or willful misconduct and as otherwise expressly
         provided herein or in the other Operative Agreements.

                  (b) Anything to the contrary contained in this Agreement, the
         Credit Agreement, the Notes or in any other Operative Agreement
         notwithstanding, no Exculpated Person shall be personally liable in any
         respect for any liability or obligation arising hereunder or in any
         other Operative Agreement including without limitation the payment of
         the principal of, or interest on, the Notes, or for monetary damages

                                       62
<PAGE>

         for the breach of performance of any of the covenants contained in the
         Credit Agreement, the Notes, this Agreement, the Security Agreement or
         any of the other Operative Agreements. The Lenders, the Holders and the
         Agent agree that, in the event any remedies under any Operative
         Agreement are pursued, neither the Lenders, the Holders nor the Agent
         shall have any recourse against any Exculpated Person, for any
         deficiency, loss or Claim for monetary damages or otherwise resulting
         therefrom and recourse shall be had solely and exclusively against the
         Trust Estate (excluding Excepted Payments) and the Credit Parties (with
         respect to the Credit Parties' obligations under the Operative
         Agreements); but nothing contained herein shall be taken to prevent
         recourse against or the enforcement of remedies against the Trust
         Estate (excluding Excepted Payments) in respect of any and all
         liabilities, obligations and undertakings contained herein and/or in
         any other Operative Agreement. Notwithstanding the provisions of this
         Section, nothing in any Operative Agreement shall: (i) constitute a
         waiver, release or discharge of any indebtedness or obligation
         evidenced by the Notes and/or the Certificates arising under any
         Operative Agreement or secured by any Operative Agreement, but the same
         shall continue until paid or discharged; (ii) relieve any Exculpated
         Person from liability and responsibility for (but only to the extent of
         the damages arising by reason of): active waste knowingly committed by
         any Exculpated Person with respect to any Property, any fraud, gross
         negligence or willful misconduct on the part of any Exculpated Person;
         (iii) relieve any Exculpated Person from liability and responsibility
         for (but only to the extent of the moneys misappropriated, misapplied
         or not turned over) (A) except for Excepted Payments, misappropriation
         or misapplication by the Lessor (i.e., application in a manner contrary
         to any of the Operative Agreements) of any insurance proceeds or
         condemnation award paid or delivered to the Lessor by any Person other
         than the Agent, (B) except for Excepted Payments, any deposits or any
         escrows or amounts owed by the Construction Agent under the Agency
         Agreement held by the Lessor or (C) except for Excepted Payments, any
         rent or other income received by the Lessor from any Credit Party that
         is not turned over to the Agent; or (iv) affect or in any way limit the
         Agent's rights and remedies under any Operative Agreement with respect
         to the Rents and rights and powers of the Agent under the Operative
         Agreements or to obtain a judgment against the Lessee's interest in the
         Properties or the Agent's rights and powers to obtain a judgment
         against the Lessor or any Credit Party (provided, that no deficiency
         judgment or other money judgment shall be enforced against any
         Exculpated Person except to the extent of the Lessor's interest in the
         Trust Estate (excluding Excepted Payments) or to the extent the Lessor
         may be liable as otherwise contemplated in clauses (ii) and (iii) of
         this Section 12.9(b)).

         12.10.   RIGHTS OF THE CREDIT PARTIES.
                  ----------------------------

         If at any time all obligations (i) of the Owner Trustee under the
Credit Agreement, the Security Documents and the other Operative Agreements and
(ii) of the Credit Parties under the Operative Agreements have in each case been
satisfied or discharged in full, then the Credit Parties shall be entitled to
(a) terminate the Lease and guaranty obligations under Section 6B and (b)
receive all amounts then held under the Operative Agreements and all proceeds
with respect to any of the Properties. Upon the termination of the Lease and
Section 6B pursuant to the foregoing clause (a), the Lessor shall transfer to
the Lessee all of its right, title and interest free and clear of the Lien of

                                       63
<PAGE>

the Lease, the Lien of the Security Documents and all Lessor Liens in and to any
Properties then subject to the Lease and any amounts or proceeds referred to in
the foregoing clause (b) shall be paid over to the Lessee.

         12.11.   FURTHER ASSURANCES.
                  ------------------

         The parties hereto shall promptly cause to be taken, executed,
acknowledged or delivered, at the sole expense of the Lessee, all such further
acts, conveyances, documents and assurances as the other parties may from time
to time reasonably request in order to carry out and effectuate the intent and
purposes of this Participation Agreement, the other Operative Agreements and the
transactions contemplated hereby and thereby (including without limitation the
preparation, execution and filing of any and all Uniform Commercial Code
financing statements, filings of Mortgage Instruments and other filings or
registrations which the parties hereto may from time to time request to be filed
or effected). The Lessee, at its own expense and without need of any prior
request from any other party, shall take such action as may be necessary
(including without limitation any action specified in the preceding sentence),
or (if the Owner Trustee shall so request) as so requested, in order to maintain
and protect all security interests provided for hereunder or under any other
Operative Agreement. In addition, in connection with the sale or other
disposition of any Property or any portion thereof, the Lessee agrees to execute
such instruments of conveyance as reasonably required in connection therewith.

         12.12.   CALCULATIONS UNDER OPERATIVE AGREEMENTS.
                  ---------------------------------------

         The parties hereto agree that all calculations and numerical
determinations to be made under the Operative Agreements by the Owner Trustee
shall be made by the Agent and that such calculations and determinations shall
be conclusive and binding on the parties hereto in the absence of manifest
error.

         12.13.   CONFIDENTIALITY.
                  ---------------

         Each Financing Party severally agrees to use reasonable efforts to keep
confidential all non-public information pertaining to any Credit Party or any of
its Subsidiaries which is provided to it by any Credit Party or any of its
Subsidiaries, and shall not intentionally disclose such information to any
Person except:

                  (a) to the extent such information is public when received by
         such Person or becomes public thereafter due to the act or omission of
         any party other than such Person;

                  (b) to the extent such information is independently obtained
         from a source other than any Credit Party or any of its Subsidiaries
         and such information from such source is not, to such Person's
         knowledge, subject to an obligation of confidentiality or, if such
         information is subject to an obligation of confidentiality, that
         disclosure of such information is permitted;

                                       64
<PAGE>

                  (c) to counsel, auditors or accountants retained by any such
         Person or any Affiliates of any such Person (if such Affiliates are
         permitted to receive such information pursuant to clause (f) or (g)
         below), provided they agree to keep such information confidential as if
         such Person or Affiliate were party to this Agreement and to financial
         institution regulators, including examiners of any Financing Party or
         any Affiliate thereof in the course of examinations of such Persons;

                  (d) in connection with any litigation or the enforcement or
         preservation of the rights of any Financing Party under the Operative
         Agreements;

                  (e) to the extent required by any applicable statute, rule or
         regulation or court order (including without limitation, by way of
         subpoena) or pursuant to the request of any regulatory or Governmental
         Authority having jurisdiction over any such Person; provided, however,
         that such Person shall endeavor (if not otherwise prohibited by Law) to
         notify the Lessee prior to any disclosure made pursuant to this clause
         (e), except that no such Person shall be subject to any liability
         whatsoever for any failure to so notify the Lessee;

                  (f) any Financing Party may disclose such information to
         another Financing Party or to any Affiliate of a Financing Party that
         is a direct or indirect owner of any Financing Party;

                  (g) any Financing Party may disclose such information to an
         Affiliate of any Financing Party to the extent required in connection
         with the transactions contemplated hereby or to the extent such
         Affiliate is involved in, or provides advice or assistance to such
         Person with respect to, such transactions (provided, in each case that
         such Affiliate has agreed in writing to maintain confidentiality as if
         it were such Financing Party (as the case may be)); or

                  (h) to the extent disclosure to any other financial
         institution or other Person is appropriate in connection with any
         proposed or actual (i) assignment or grant of a participation by any of
         the Lenders of interests in the Credit Agreement or any Note to such
         other financial institution (who will in turn be required by the Agent
         to agree in writing to maintain confidentiality as if it were a Lender
         originally party to this Agreement) or (ii) assignment by any Holder of
         interests in the Trust Agreement to another Person (who will in turn be
         required by the transferring Holder to agree in writing to maintain
         confidentiality as if it were a Holder originally party to this
         Agreement).

         Subject to the terms of Sections 12.13(a)-12.13(h), under the terms of
any one or more of which circumstances disclosure shall be permitted, each
Financing Party severally agrees to use reasonable efforts to keep confidential
all non-public information pertaining to the financing structure described in
the unrecorded Operative Agreements.

                                       65
<PAGE>

         12.14.   FINANCIAL REPORTING/TAX CHARACTERIZATION.
                  ----------------------------------------

         Lessee agrees to obtain advice from its own accountants and tax counsel
regarding the financial reporting treatment and the tax characterization of the
transactions described in the Operative Agreements. Lessee further agrees that
Lessee shall not rely upon any statement of any Financing Party or any of their
respective Affiliates and/or Subsidiaries regarding any such financial reporting
treatment and/or tax characterization.

         12.15.   SET-OFF.
                  -------

         In addition to any rights now or hereafter granted under applicable Law
and not by way of limitation of any such rights, upon and after the occurrence
of any Event of Default and during the continuance thereof, the Lenders, the
Holders, their respective Affiliates and any assignee or participant of a Lender
or a Holder in accordance with the applicable provisions of the Operative
Agreements are hereby authorized by the Credit Parties at any time or from time
to time, without notice to the Credit Parties or to any other Person, any such
notice being hereby expressly waived, to set-off and to appropriate and to apply
any and all deposits (general or special, time or demand, including without
limitation indebtedness evidenced by certificates of deposit, whether matured or
unmatured) and any other indebtedness at any time held or owing by the Lenders,
the Holders, their respective Affiliates or any assignee or participant of a
Lender or a Holder in accordance with the applicable provisions of the Operative
Agreements to or for the credit or the account of any Credit Party against and
on account of the obligations of any Credit Party under the Operative Agreements
irrespective of whether or not (a) the Lenders or the Holders shall have made
any demand under any Operative Agreement or (b) the Agent shall have declared
any or all of the obligations of any Credit Party under the Operative Agreements
to be due and payable and although such obligations shall be contingent or
unmatured. Notwithstanding the foregoing, neither the Agent nor any other
Financing Party shall exercise, or attempt to exercise, any right of setoff,
banker's lien, or the like, against any deposit account or property of any
Credit Party held by the Agent or any other Financing Party, without the prior
written consent of the Majority Secured Parties, and any Financing Party
violating this provision shall indemnify the Agent and the other Financing
Parties from any and all costs, expenses, liabilities and damages resulting
therefrom. The contractual restriction on the exercise of setoff rights provided
in the foregoing sentence is solely for the benefit of the Agent and the
Financing Parties and may not be enforced by any Credit Party.

                            [signature pages follow]

                                       66
<PAGE>

                                                         Participation Agreement
                                                   Digital Hospital Trust 2001-1

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers thereunto duly authorized as of the
day and year first above written.

CONSTRUCTION AGENT
------------------
AND LESSEE:
-----------
                                             HEALTHSOUTH MEDICAL CENTER, INC.,
                                             an Alabama corporation

                                             By: /s/ Malcolm E. McVay
                                                 -------------------------------
                                             Name: Malcolm E. McVay
                                                   -----------------------------
                                             Title: Vice President and Treasurer
                                                    ----------------------------

                           [signature pages continued]

<PAGE>

GUARANTOR:
----------

                                   HEALTHSOUTH CORPORATION, a Delaware
                                   corporation

                                   By: /s/ Malcolm E. McVay
                                       -----------------------------------------
                                   Name: Malcolm E. McVay
                                         ---------------------------------------
                                   Title: Executive Vice President and Treasurer
                                          --------------------------------------

                           [signature pages continued]
<PAGE>

OWNER TRUSTEE AND
-----------------
LESSOR:                                      STATE STREET BANK AND TRUST
------                                       COMPANY OF CONNECTICUT, NATIONAL
                                             ASSOCIATION, not individually,
                                             except as expressly stated herein,
                                             but solely as Owner Trustee for
                                             Digital Hospital Trust 2001-1

                                             By: /s/ Deborah A. Ibrahim
                                                 -------------------------------
                                             Name: Deborah A. Ibrahim
                                                   -----------------------------
                                             Title: Assistant Secretary
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

THE AGENT AND
-------------
LENDERS:                                     FIRST UNION NATIONAL BANK, as a
-------                                      Lender and as the Agent

                                             By: /s/ Evander S. Jones, Jr.
                                                 -------------------------------
                                             Name: Evander S. Jones, Jr.
                                                   -----------------------------
                                             Title: Vice President
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

                                             DBAH CAPITAL, LLC, as a Lender

                                             By: /s/ John Cipriani
                                                 -------------------------------
                                             Name: John Cipriani
                                                   -----------------------------
                                             Title: Director
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

                                             JPMORGAN CHASE BANK, as a Lender

                                             By: /s/ Dawn Lee Lum
                                                 -------------------------------
                                             Name: Dawn Lee Lum
                                                   -----------------------------
                                             Title: Vice President
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

HOLDERS:                                  FIRST UNION NATIONAL BANK, as a Holder
-------

                                             By: /s/ Evander S. Jones, Jr.
                                                 -------------------------------
                                             Name: Evander S. Jones, Jr.
                                                   -----------------------------
                                             Title: Vice President
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

                                             DBAH CAPITAL, LLC, as a Holder

                                             By: /s/ John Cipriani
                                                 -------------------------------
                                             Name: John Cipriani
                                                   -----------------------------
                                             Title: Director
                                                    ----------------------------

                           [signature pages continued]
<PAGE>

                                             CSL LEASING, INC., as a Holder

                                             By: /s/ James P. Donaghey
                                                 -------------------------------
                                             Name: James P. Donaghey
                                                   -----------------------------
                                             Title: Vice President
                                                    ----------------------------

                              [signature pages end]
<PAGE>

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

                                   Appendix A
                         Rules of Usage and Definitions

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

                                I. Rules of Usage

The following rules of usage shall apply to this Appendix A and the Operative
Agreements (and each appendix, schedule, exhibit and annex to the foregoing)
unless otherwise required by the context or unless otherwise defined therein:

         (a) Except as otherwise expressly provided, any definitions set forth
herein or in any other document shall be equally applicable to the singular and
plural forms of the terms defined.

         (b) Except as otherwise expressly provided, references in any document
to articles, sections, paragraphs, clauses, annexes, appendices, schedules or
exhibits are references to articles, sections, paragraphs, clauses, annexes,
appendices, schedules or exhibits in or to such document.

         (c) The headings, subheadings and table of contents used in any
document are solely for convenience of reference and shall not constitute a part
of any such document nor shall they affect the meaning, construction or effect
of any provision thereof.

         (d) References to any Person shall include such Person, its successors,
permitted assigns and permitted transferees.

         (e) Except as otherwise expressly provided, reference to any agreement
means such agreement as amended, modified, extended, supplemented, restated
and/or replaced from time to time in accordance with the applicable provisions
thereof.

         (f) Except as otherwise expressly provided, references to any law
includes any amendment or modification to such law and any rules or regulations
issued thereunder or any law enacted in substitution or replacement therefor.

         (g) When used in any document, words such as "hereunder", "hereto",
"hereof" and "herein" and other words of like import shall, unless the context
clearly indicates to the contrary, refer to the whole of the applicable document
and not to any particular article, section, subsection, paragraph or clause
thereof.

         (h) References to "including" means including without limiting the
generality of any description preceding such term and for purposes hereof the
rule of ejusdem generis shall not be applicable to limit a general statement,
followed by or referable to an enumeration of specific matters, to matters
similar to those specifically mentioned.

                                  Appendix A-1
<PAGE>

         (i) References herein to "attorney's fees", "legal fees", "costs of
counsel" or other such references shall be deemed to include the allocated cost
of in-house counsel.

         (j) Each of the parties to the Operative Agreements and their counsel
have reviewed and revised, or requested revisions to, the Operative Agreements,
and the usual rule of construction that any ambiguities are to be resolved
against the drafting party shall be inapplicable in the construction and
interpretation of the Operative Agreements and any amendments or exhibits
thereto.

         (k) Capitalized terms used in any Operative Agreements which are not
defined in this Appendix A but are defined in another Operative Agreement shall
have the meaning so ascribed to such term in the applicable Operative Agreement.

                                 II. Definitions

         "ABR" shall mean, for any day, a rate per annum equal to the greater of
(a) the Prime Lending Rate in effect on such day, and (b) the Federal Funds
Effective Rate in effect on such day plus one-half of one percent (0.5%). For
purposes hereof: "Prime Lending Rate" shall mean the rate announced by the Agent
from time to time as its prime lending rate as in effect from time to time. The
Prime Lending Rate is a reference rate and is one of several interest rate bases
used by the Agent and does not necessarily represent the lowest or most
favorable rate offered by the Agent actually charged to any customer. Any Lender
may make commercial loans or other loans at rates of interest at, above or below
the Prime Lending Rate. The Prime Lending Rate shall change automatically and
without notice from time to time as and when the prime lending rate of the Agent
changes. "Federal Funds Effective Rate" shall mean, for any period, a
fluctuating interest rate per annum equal for each day during such period to the
weighted average of the rates on overnight Federal funds transactions with
members or the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by the Agent from three
(3) Federal funds brokers of recognized standing selected by it. Any change in
the ABR due to a change in the Prime Lending Rate or the Federal Funds Effective
Rate shall be effective as of the opening of business on the effective day of
such change in the Prime Lending Rate or the Federal Funds Effective Rate,
respectively.

         "ABR Holder Advance" shall mean a Holder Advance bearing a Holder Yield
based on the ABR.

         "ABR Loans" shall mean Loans the rate of interest applicable to which
is based upon the ABR.

         "Acceleration" shall have the meaning given to such term in Section 6
of the Credit Agreement.

                                  Appendix A-2
<PAGE>

         "Accounts" shall have the meaning given to such term in Section 1 of
the Security Agreement.

         "Acquisition Advance" shall have the meaning given to such term in
Section 5.3 of the Participation Agreement.

         "Acquisition Loan" shall mean any Loan made in connection with an
Acquisition Advance.

         "Additional Incorporated Terms" shall have the meaning given to such
term in Section 28.1 of the Lease.

         "Adjusted Property Cost" shall mean, for each Property, the Property
Cost for such Property minus the Excluded Costs for such Property.

         "Advance" shall mean a Construction Advance or an Acquisition Advance.

         "Affiliate" shall mean, with respect to any Person, any Person or group
acting in concert in respect of the Person in question that, directly or
indirectly, controls or is controlled by or is under common control with such
Person.

         "After Tax Basis" shall mean, with respect to any payment to be
received, the amount of such payment increased so that, after deduction of the
amount of all taxes required to be paid by the recipient calculated at the then
maximum marginal rates generally applicable to Persons of the same type as the
recipients with respect to the receipt by the recipient of such amounts (less
any tax savings realized as a result of the payment of the indemnified amount),
such increased payment (as so reduced) is equal to the payment otherwise
required to be made.

         "Agency Agreement" shall mean the Agency Agreement, dated on or about
the Initial Closing Date between the Construction Agent and the Lessor.

         "Agency Agreement Event of Default" shall mean an "Event of Default" as
defined in Section 5.1 of the Agency Agreement.

         "Agent" shall mean First Union National Bank, as agent for the Lenders
pursuant to the Credit Agreement, or any successor agent appointed in accordance
with the terms of the Credit Agreement and respecting the Security Documents, as
agent for the Secured Parties.

         "Applicable Percentage" shall mean for [ABR Loans, ABR Holder Advances,
Eurodollar Loans, Eurodollar Holder Advances and Unused Fees] the margin,
expressed as a percentage per annum, set forth below determined (except with
respect to Cash Secured Loans) according to the highest Rating of outstanding
senior unsecured indebtedness of the Parent from time to time as specified in
the table below (provided that in the event of a Rating split between Tiers,
then the Tier next above the Tier corresponding to the lower Rating shall apply)
or such margin as may otherwise be applicable for Cash Secured Loans:

                                  Appendix A-3
<PAGE>

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
                 Senior Unsecured Debt Rating                         ABR                    Eurodollar
                 ----------------------------            ABR         Holder     Eurodollar      Holder     Unused Fee
 Tier             S&P                  Moody's          Loans       Advances       Loans       Advances
---------------------------------------------------------------------------------------------------------------------
<S>      <C>                    <C>                     <C>         <C>           <C>          <C>           <C>
   I     Cash Secured Loans     Cash Secured Loans        0.0         n/a           40.0         n/a          15.0
---------------------------------------------------------------------------------------------------------------------
  II     BBB or greater         Baa2 or greater          12.5        112.5         112.5        212.5         25.0
---------------------------------------------------------------------------------------------------------------------
  III    BB+                    Ba1                      37.5        137.5         137.5        237.5         37.5
---------------------------------------------------------------------------------------------------------------------
  IV     less than BB+          less than Ba1            87.5        187.5         187.5        287.5         50.0
---------------------------------------------------------------------------------------------------------------------
</TABLE>

Additionally, the following provisions shall apply to the Tranche A Loans and
the Tranche A Unused Fee:

Tranche A Loans: The portion of Tranche A Loans in an amount equal to the
aggregate of all Advances in excess of $60,000,000 (Cash Secured Loans) shall
bear interest calculated at the rate applicable to such Advances set forth in
Tier I. The remaining portion of the total Tranche A Loans shall bear interest
at the rate applicable to the type of Tranche A Loan set forth in Tier II-IV
according to the Rating.

Tranche A Unused Fee: Commitments in an amount equal to the unused Tranche A
Commitments which if funded would be required to be Cash Secured Loans shall
receive an Unused Fee calculated at the rate applicable to such Commitments set
forth in Tier I. The difference between the aggregate unused Tranche A
Commitments and the unused Tranche A Commitments which if funded would be
required to be Cash Secured Loans shall receive an unused fee calculated at the
rate applicable to such Commitments set forth in Tier II-IV according to the
Rating.

The "Applicable Percentage" shall be determined by the Agent and for purposes of
such determination: (i) no change in Rating shall be effective until the Agent
receives notice or otherwise has notice knowledge thereof; and (ii) each change
in the Applicable Percentage shall, subject to the terms of the immediately
preceding subsection (i), be effective on and as of the date of each such
change. Initially, the Applicable Percentage shall be at Tier III. If at any
time either the Parent's senior unsecured debt is not rated by S&P or Moody's,
then Tier IV shall apply.

         "Appraisal" shall mean, with respect to any Property, an appraisal to
be delivered in connection with the Participation Agreement or in accordance
with the terms of the Lease, in each case prepared by a reputable appraiser
reasonably acceptable to the Agent, which in the judgment of counsel to the
Agent, complies with all of the provisions of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as amended, the rules and regulations
adopted pursuant thereto, and all other applicable Legal Requirements.

         "Appraisal Procedure" shall have the meaning given such term in Section
22.4 of the Lease.

                                  Appendix A-4
<PAGE>

         "Approved Bank" shall have the meaning given to such term in the
definition of "Cash Equivalents" in this Appendix A.

         "Approved State" shall mean each of the following: Alabama and any
other state within the continental United States proposed by the Lessee and
consented to in writing by the Agent.

         "Appurtenant Rights" shall mean (a) all agreements, easements, rights
of way or use, rights of ingress or egress, privileges, appurtenances,
tenements, hereditaments and other rights and benefits at any time belonging or
pertaining to the Land underlying the Improvements or the Improvements,
including without limitation the use of any streets, ways, alleys, vaults or
strips of land adjoining, abutting, adjacent or contiguous to the Land and (b)
all permits, licenses and rights, whether or not of record, appurtenant to such
Land or the Improvements.

         "Assignment and Acceptance" shall mean the Assignment and Acceptance in
the form attached to the Credit Agreement as EXHIBIT B.

         "Available Commitment" shall mean, as to any Lender at any time, an
amount equal to the excess, if any, of (a) the amount of such Lender's
Commitment over (b) the aggregate principal amount of all Loans made by such
Lender as of such date after giving effect to Section 5.2(d) of the
Participation Agreement (but without giving effect to any other repayments or
prepayments of any Loans hereunder).

         "Available Holder Commitments" shall mean an amount equal to the
excess, if any, of (a) the aggregate amount of the Holder Commitments over (b)
the aggregate amount of the Holder Advances made since the Initial Closing Date
after giving effect to Section 5.2(d) of the Participation Agreement (but
without giving effect to any other repayments or prepayments of any Holder
Advances).

         "Bankruptcy Code" shall mean Title 11 of the U. S. Code entitled
"Bankruptcy," as now or hereafter in effect or any successor thereto.

         "Basic Documents" shall mean the following: the Participation
Agreement, the Agency Agreement, the Trust Agreement, the Certificates, the
Credit Agreement, the Notes, the Lease and the Security Agreement.

         "Basic Rent" shall mean, the sum of (a) the Loan Basic Rent and (b) the
Lessor Basic Rent, calculated as of the applicable date on which Basic Rent is
due.

         "Benefitted Lender" shall have the meaning specified in Section 9.10(a)
of the Credit Agreement.

         "Bill of Sale" shall mean a Bill of Sale regarding Equipment in form
and substance satisfactory to the Agent.

         "Board" shall mean the Board of Governors of the Federal Reserve System
of the United States (or any successor).

                                  Appendix A-5
<PAGE>

         "Borrower" shall mean the Owner Trustee, not in its individual capacity
but as Borrower under the Credit Agreement.

         "Borrowing Date" shall mean any Business Day specified in a notice
delivered pursuant to Section 2.3 of the Credit Agreement as a date on which the
Lessor requests the Lenders to make Loans thereunder.

         "Budgeted Total Property Cost" shall mean, at any date of determination
with respect to any Construction Period Property, an amount equal to the
aggregate amount which the Construction Agent in good faith expects to be
expended in order to achieve Completion with respect to such Property.

         "Business Day" shall mean a day other than a Saturday, Sunday or other
day on which commercial banks in Charlotte, North Carolina or any other states
from which the Agent, any Lender or any Holder funds or engages in
administrative activities with respect to the transactions under the Operative
Agreements are authorized or required by law to close; provided, however, that
when used in connection with a Eurodollar Loan, the term "Business Day" shall
also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market.

         "Capitalized Lease" shall mean, as applied to any Person, any lease of
property (whether real, personal, tangible, intangible or mixed of such Person)
by such Person as the lessee which would be capitalized on a balance sheet of
such Person prepared in accordance with GAAP.

         "Capital Stock" shall mean any nonredeemable capital stock of any
Credit Party or any of its Subsidiaries or of any other applicable Person,
whether common or preferred.

         "Cash Collateral" shall mean such cash and Cash Equivalents
constituting the Cash Collateral Account pledged by the Lessee and maintained in
a trust account with State Street Bank and Trust Company of Connecticut,
National Association in accordance with the Cash Collateral Agreement.

         "Cash Collateral Account" shall mean the cash collateral account
(including without limitation the deposits and certificates of deposit in such
account) which is the subject of the Cash Collateral Agreement and held at the
Cash Collateral Possessor.

         "Cash Collateral Agreement" shall mean that certain Cash Collateral
Agreement by the Lessee and agreed and accepted by the Agent and the Cash
Collateral Possessor, in substantially the form of Exhibit L attached to the
Participation Agreement, with any modifications thereto being approved by the
Majority Secured Parties.

         "Cash Collateral Agreement Event of Default" shall have the meaning
specified in Section 3.1 of the Cash Collateral Agreement.

                                  Appendix A-6
<PAGE>

         "Cash Collateral Possessor" shall mean an institution selected by the
Lessee and approved by the Agent that is not an affiliate of any Credit Party or
Financing Party.

         "Cash Equivalents" shall mean (a) securities issued or directly and
fully guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof).

         "Cash Secured Loan" shall mean those certain Tranche A Loans which the
Lessee has secured dollar for dollar by making deposits in the Cash Collateral
Account in accordance with Section 5.11 of the Participation Agreement and the
Cash Collateral Agreement.

         "Casualty" shall mean any damage or destruction of all or any portion
of the Property as a result of a fire or other casualty.

         "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, 42 U.S.C.ss.9601 et seq., as amended by
the Superfund Amendments and Reauthorization Act of 1986.

         "Certificate" shall mean a Certificate in favor of each Holder
regarding the Holder Commitment of such Holder issued pursuant to the terms and
conditions of the Trust Agreement in favor of each Holder.

         "Chattel Paper" shall have the meaning given to such term in Section 1
of the Security Agreement.

         "Claims" shall mean any and all obligations, liabilities, losses,
actions, suits, penalties, claims, demands, costs and expenses (including
without limitation reasonable attorney's fees and expenses) of any nature
whatsoever.

         "Closing Date" shall mean the Initial Closing Date and each Property
Closing Date.

         "Code" shall mean the Internal Revenue Code of 1986 together with rules
and regulations promulgated thereunder, as amended from time to time, or any
successor statute thereto.

         "Collateral" shall mean all assets of the Lessor, the Construction
Agent and the Lessee, now owned or hereafter acquired, upon which a Lien is
purported to be created by one or more of the Security Documents.

         "Commencement Date" shall have the meaning specified in Section 2.2 of
the Lease.

         "Commitment" shall mean, as to any Lender, the Lender Commitment of
such Lender.

         "Commitment Percentage" shall mean, as to any Lender at any time, the
percentage which such Lender's Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such Lender's
Loans then outstanding constitutes of the aggregate principal amount of all of

                                  Appendix A-7
<PAGE>

the Loans then outstanding), and such Commitment Percentage shall take into
account both the Lender's Tranche A Commitment and the Lender's Tranche B
Commitment.

         "Commitment Period" shall mean the period from and including the
Initial Closing Date to and including the Construction Period Termination Date,
or such earlier date as the Commitments shall terminate as provided in the
Credit Agreement or the Holder Commitment shall terminate as provided in the
Trust Agreement.

         "Company Obligations" shall mean the obligations of HEALTHSOUTH Medical
Center, Inc. in any and all capacities under and with respect to the Operative
Agreements and each Property.

         "Completion" shall mean, with respect to a Property, such time as the
acquisition, installation, testing and final completion of the Improvements on
such Property has been achieved in accordance with the Plans and Specifications,
the Agency Agreement and/or the Lease, and in compliance with all Legal
Requirements and Insurance Requirements and a certificate of occupancy has been
issued with respect to such Property by the appropriate governmental entity
(except if non-compliance, individually or in the aggregate, shall not have and
could not reasonably be expected to have a Material Adverse Effect or if
compliance with any of the foregoing is otherwise waived by the Agent upon
instruction from the Majority Secured Parties). If the Lessor purchases a
Property that includes existing Improvements that are to be immediately occupied
by the Lessee without any improvements financed pursuant to the Operative
Agreements, the date of Completion for such Property shall be the Property
Closing Date.

         "Completion Date" shall mean, with respect to a Property, the date on
which Completion for such Property has occurred.

         "Condemnation" shall mean any taking or sale of the use, access,
occupancy, easement rights or title to any Property or any part thereof, wholly
or partially (temporarily or permanently), by or on account of any actual or
threatened eminent domain proceeding or other taking of action by any Person
having the power of eminent domain, including without limitation an action by a
Governmental Authority to change the grade of, or widen the streets adjacent to,
any Property or alter the pedestrian or vehicular traffic flow to any Property
so as to result in a change in access to such Property, or by or on account of
an eviction by paramount title or any transfer made in lieu of any such
proceeding or action.

         "Consolidated Subsidiary" shall mean, as to any Person, any Subsidiary
of such Person which under the rules of GAAP consistently applied should have
its financial results consolidated with those of such Person for purposes of
financial accounting statements.

         "Construction Advance" shall mean an advance of funds to pay Property
Costs pursuant to Section 5.4 of the Participation Agreement.

                                  Appendix A-8
<PAGE>

         "Construction Agency Person" shall mean the Construction Agent and any
Person that the Construction Agent directly or indirectly supervises, and any
Affiliate of any of the foregoing.

         "Construction Agent" shall mean HEALTHSOUTH Medical Center, Inc., an
Alabama corporation, as the construction agent under the Operative Agreements.

         "Construction Budget" shall mean the cost of acquisition, installation,
testing, constructing and developing any Property as determined by the
Construction Agent in its reasonable, good faith judgment.

         "Construction Commencement Date" shall mean, with respect to
Improvements, the date on which construction of such Improvements commences
pursuant to the Agency Agreement.

         "Construction Contract" shall mean any contract entered into between
the Construction Agent or the Lessee with a Contractor for the construction of
Improvements or any portion thereof on the Property.

         "Construction Loan" shall mean any Loan made in connection with a
Construction Advance.

         "Construction Period" shall mean, with respect to a Property, the
period commencing on the Construction Commencement Date for such Property and
ending on the Completion Date for such Property.

         "Construction Period Property" means, at any date of determination, any
Property as to which the Rent Commencement Date has not occurred on or prior to
such date.

         "Construction Period Termination Date" shall mean (a) the earlier of
(i) the date that the Commitments have been terminated in their entirety in
accordance with the terms of Section 2.5 of the Credit Agreement, (ii) the date
that is thirty months after the Initial Closing Date, or (iii) with respect to
any Property, the Completion Date for such Property or (b) such later date as
shall be agreed in accordance with Section 12.4 of the Participation Agreement
or as provided pursuant to Section 5.18(a) of the Participation Agreement.

         "Contract Provider" shall mean any Person who provides professional
health care services under or pursuant to any contract with the Parent or any
Subsidiary.

         "Contractor" shall mean each entity with whom the Construction Agent or
the Lessee contracts to construct any Improvements or any portion thereof on the
Property.

         "Control Agreement" shall mean that certain control agreement by and
among the Lessee, the Agent and the Cash Collateral Possessor, in substantially
the form of Exhibit M attached to the Participation Agreement, with any
modifications thereto being approved by the Majority Secured Parties.

                                  Appendix A-9
<PAGE>

         "Control Investment Affiliate" shall mean as to any Person, any other
Person that (a) directly or indirectly, is in control of, is controlled by, or
is under common control with, such Person and (b) is organized by such Person
primarily for the purpose of making equity or debt investments in one or more
companies. For purposes of this definition, "control" of a Person means the
power, directly or indirectly, to direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

         "Controlled Group" shall mean all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with any Credit Party, are treated as a single
employer under Section 414 of the Code.

         "Co-Owner Trustee" shall have the meaning specified in Section 9.2 of
the Trust Agreement.

         "Credit Agreement" shall mean the Credit Agreement, dated on or about
the Initial Closing Date, among the Lessor, the Agent and the Lenders, as
specified therein.

         "Credit Agreement Default" shall mean any event or condition which,
with the lapse of time or the giving of notice, or both, would constitute a
Credit Agreement Event of Default.

         "Credit Agreement Event of Default" shall mean any event or condition
defined as an "Event of Default" in Section 6 of the Credit Agreement.

         "Credit Documents" shall mean the Participation Agreement, the Credit
Agreement, the Notes and the Security Documents.

         "Credit Parties" shall mean the Construction Agent, the Lessee and the
Guarantor.

         "Deed" shall mean a warranty deed regarding the Land and/or
Improvements in form and substance satisfactory to the Agent.

         "Default" shall mean any event, act or condition which with notice or
lapse of time, or both, would constitute an Event of Default.

         "Defaulting Holder" shall have the meaning given to such term in
Section 12.4 of the Participation Agreement.

         "Defaulting Lender" shall have the meaning given to such term in
Section 12.4 of the Participation Agreement.

         "Deficiency Balance" shall have the meaning given in Section 22.1(b) of
the Lease Agreement.

         "Digital Hospital Property" shall mean that certain Property located in
Birmingham, Alabama which was ground leased to the Lessor on or about the
Initial Closing Date and which is described more particularly in Lease
Supplement No. 1.

                                 Appendix A-10
<PAGE>

         "Digital Hospital Trust 2001-1" shall mean the grantor trust created
pursuant to the terms and conditions of the Trust Agreement.

         "Documents" shall have the meaning given to such term in Section 1 of
the Security Agreement.

         "Dollars" and "$" shall mean dollars in lawful currency of the United
States of America.

         "Election Date" shall have the meaning given to such term in Section
20.1 of the Lease.

         "Election Notice" shall have the meaning given to such term in Section
20.1 of the Lease.

         "Employee Benefit Plan" or "Plan" shall mean an employee benefit plan
(within the meaning of Section 3(3) of ERISA, including without limitation any
Multiemployer Plan), or any "plan" as defined in Section 4975(e)(1) of the Code
and as interpreted by the Internal Revenue Service and the Department of Labor
in rules, regulations, releases or bulletins in effect on any Closing Date.

         "Engagement Letter" shall mean the engagement letter dated October 25,
2001 addressed to Mr. Malcolm McVay, EVP & Treasurer of HEALTHSOUTH Corporation
from Weston Garrett, Vice President of First Union Securities, Inc.

         "Environmental Claims" shall mean any investigation, notice, violation,
demand, allegation, action, suit, injunction, judgment, order, consent decree,
penalty, fine, lien, proceeding, or claim (whether administrative, judicial, or
private in nature) arising (a) pursuant to, or in connection with, an actual or
alleged violation of, any Environmental Law, (b) in connection with any
Hazardous Substance, (c) from any abatement, removal, remedial, corrective, or
other response action in connection with a Hazardous Substance, Environmental
Law, or other order of a Tribunal or (d) from any actual or alleged damage,
injury, threat, or harm to health, safety, natural resources, or the
environment.

         "Environmental Laws" shall mean any Law, permit, consent, approval,
license, award, or other authorization or requirement of any Tribunal relating
to emissions, discharges, releases, threatened releases of any Hazardous
Substance into ambient air, surface water, ground water, publicly owned
treatment works, septic system, or land, or otherwise relating to the handling,
storage, treatment, generation, use, or disposal of Hazardous Substances,
pollution or to the protection of health or the environment, including without
limitation CERCLA, the Resource Conservation and Recovery Act, 42 U.S.C. ss.
6901, et seq., and state statutes analogous thereto.

         "Environmental Violation" shall mean any activity, occurrence or
condition that violates or threatens (if the threat requires remediation under
any Environmental Law and is not remediated during any grace period allowed
under such Environmental Law) to violate or results in or threatens (if the
threat requires remediation under any Environmental Law and is not remediated
during any grace period allowed under such Environmental Law) to result in
noncompliance with any Environmental Law.

                                 Appendix A-11
<PAGE>

         "Equipment" shall mean only the equipment, apparatus, furnishings,
fixtures, fittings and personal property of every kind and nature necessary or
typical for the operation of any Improvements, whenever purchased using the
proceeds of the Loans or the Holder Advances and all improvements and
modifications thereto and replacements thereof, whether or not now owned or
hereafter acquired or now or subsequently attached to any Improvements,
necessary or typical for the operation of any Improvements.

         "Equipment Schedule" shall mean (a) each Equipment Schedule attached to
the applicable Requisition and (b) each Equipment Schedule attached to the
applicable Lease Supplement.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

         "ERISA Affiliate" shall mean each entity required to be aggregated with
any Credit Party pursuant to the requirements of Section 414(b) or (c) of the
Code.

         "Eurodollar Holder Advance" shall mean a Holder Advance bearing a
Holder Yield based on the Eurodollar Rate.

         "Eurodollar Loans" shall mean Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.

         "Eurodollar Percentage" shall mean for the Interest Period for each
Eurodollar Loan or Eurodollar Holder Advance comprising part of the same
borrowing or advance (including without limitation conversions, extensions and
renewals), the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of 1%) appearing on Telerate page 3750 (or any successor thereto) at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first
day of such Interest Period. If for any reason such rate is not available, the
term "Eurodollar Percentage" shall mean for the Interest Period for each
Eurodollar Loan or Eurodollar Holder Advance comprising part of the same
borrowing or advance (including without limitation conversions, extensions and
renewals), the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of 1%), appearing on the Reuters Screen LIBO Page as the London interbank
offered rate for deposits in Dollars at approximately 11:00 A.M. ( London time)
two (2) Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period; provided, however, if more than one rate is
specified on Reuters Screen LIBO Page, the applicable rate shall be the
arithmetic mean of all such rates (rounded upwards, if necessary, to the nearest
1/100 of 1%). As used herein, "Reuters Screen LIBO Page" means the display
designated as page "LIBO" on the Reuters Monitor Money Rates Service (or such
other page as may replace the LIBO page on that service for the purpose of
displaying London interbank offered rates of major banks) ("RMMRS"). If, for any
reason, neither of such rates is available, then "Eurodollar Percentage" shall
mean for the Interest Period for each Eurodollar Loan or Eurodollar Holder
Advance comprising part of the same borrowing or advance (including without
limitation conversions, extensions and renewals), the rate per annum at which,
as determined by the Agent, Dollars in an amount comparable to the Eurodollar

                                 Appendix A-12
<PAGE>

Loans and Eurodollar Holder Advances then requested, converted, extended, or
renewed, as the case may be, are being offered to leading banks at approximately
11:00 A.M. London time, two (2) Business Days prior to the commencement of the
applicable Interest Period for settlement in immediately available funds by
leading banks in the London interbank market for a period equal to the Interest
Period selected.

         "Eurodollar Rate" shall mean a rate per annum (rounded upwards, if
necessary, to the next higher 1/100th of 1%) determined by the Agent pursuant to
the following formula:

                  Eurodollar Rate =       Eurodollar Percentage
                                    ------------------------------------
                                    1.00 - Eurodollar Reserve Percentage

         "Eurodollar Reserve Percentage" shall mean for any day as applied to a
Eurodollar Loan or a Eurodollar Holder Advance, the aggregate (without
duplication) of the maximum rates (expressed as a decimal) of reserve
requirements in effect on such day (including without limitation basic,
supplemental, marginal and emergency reserves under any regulations of the Board
or other Governmental Authority having jurisdiction with respect thereto)
dealing with reserve requirements prescribed on eurocurrency funding (currently
referred to as "Eurocurrency liabilities" in Regulation D) maintained by a
member bank of the Federal Reserve System.

         "Event of Default" shall mean a Lease Event of Default, an Agency
Agreement Event of Default, a Cash Collateral Agreement Event of Default or a
Credit Agreement Event of Default.

         "Excepted Payments" shall mean:

                  (a) all indemnity payments (including without limitation
         indemnity payments made pursuant to Section 11 of the Participation
         Agreement), whether made by adjustment to Basic Rent or otherwise, to
         which the Owner Trustee, any Holder or any of their respective
         Affiliates, agents, officers, directors or employees is entitled;

                  (b) any amounts (other than Basic Rent or Termination Value)
         payable under any Operative Agreement to reimburse the Owner Trustee,
         any Holder or any of their respective Affiliates (including without
         limitation the reasonable expenses of the Owner Trustee, the Trust
         Company and the Holders incurred in connection with any such payment)
         for performing or complying with any of the obligations of any Credit
         Party under and as permitted by any Operative Agreement;

                  (c) any amount payable to a Holder by any transferee of such
         interest of a Holder as the purchase price of such Holder's interest in
         the Trust Estate (or a portion thereof);

                  (d) any insurance proceeds (or payments with respect to risks
         self-insured or policy deductibles) under liability policies other than
         such proceeds or payments payable to the Agent or any Lender;

                                 Appendix A-13
<PAGE>

                  (e) any insurance proceeds under policies maintained by the
         Owner Trustee or any Holder;

                  (f) Transaction Expenses or other amounts, fees, disbursements
         or expenses paid or payable to or for the benefit of the Owner Trustee;

                  (g) any payments in respect of interest to the extent
         attributable to payments referred to in clauses (a) through (f) above;
         and

                  (h) any rights of either the Owner Trustee or the Trust
         Company to demand, collect, sue for or otherwise receive and enforce
         payment of any of the foregoing amounts, provided that such rights
         shall not include the right to terminate the Lease.

         "Excess Proceeds" shall mean the excess, if any, of the aggregate of
all awards, compensation or insurance proceeds payable in connection with a
Casualty or Condemnation over the Termination Value paid by the Lessee pursuant
to the Lease with respect to such Casualty or Condemnation.

         "Excluded Cost" shall mean the sum of (a) the actual construction costs
(net of insurance proceeds, but including the applicable deductible) necessary
to repair and restore damage caused by a Force Majeure Event with respect to the
Improvements to a Construction Period Property to the condition of such
Improvements immediately prior to such Force Majeure Event plus (b) the Excluded
Indemnity Amount.

         "Excluded Indemnity Amount" shall have the meaning given to such term
in Section 11.7 of the Participation Agreement.

         "Exculpated Persons" shall mean the Trust Company (except with respect
to the representations and warranties and the other obligations of the Trust
Company pursuant to the Operative Agreements expressly undertaken in its
individual capacity, including without limitation the representations and
warranties of the Trust Company pursuant to Section 6.1 of the Participation
Agreement, the obligations of the Trust Company pursuant to Section 8.2 of the
Participation Agreement and the obligations of the Trust Company pursuant to the
Trust Agreement), the Holders (except with respect to the obligations of the
Holders pursuant to the Participation Agreement and the Trust Agreement
expressly undertaken in their respective individual capacities), their officers,
directors, shareholders and partners.

         "Exempt Payments" shall have the meaning specified in Section 11.2(e)
of the Participation Agreement.

         "Expiration Date" shall mean the last day of the Term; provided, in no
event shall the Expiration Date be later than the date that is seven (7) years
and six (6) months after the Initial Closing Date, unless such later date has
been expressly agreed to in writing by each of the Lessor, the Lessee, the
Agent, the Lenders and the Holders.

                                 Appendix A-14
<PAGE>

         "Extended Remarketing Period" shall have the meaning given to such term
in Section 22.6 of the Lease.

         "Fair Market Sales Value" shall mean, with respect to any Property, the
amount, which in any event, shall not be less than zero (0), that would be paid
in cash in an arms-length transaction between an informed and willing purchaser
and an informed and willing seller, neither of whom is under any compulsion to
purchase or sell, respectively, such Property. Fair Market Sales Value of any
Property shall be determined based on the assumption that, except for purposes
of Section 17 of the Lease, such Property is in the condition and state of
repair required under Section 10.1 of the Lease and each Credit Party is in
compliance with the other requirements of the Operative Agreements.

         "Federal Funds Effective Rate" shall have the meaning given to such
term in the definition of ABR.

         "Financing Parties" shall mean the Lessor, the Owner Trustee, in its
trust capacity, the Agent, the Holders and the Lenders.

         "Fixtures" shall mean all fixtures relating to the Improvements,
including without limitation all components thereof, located in or on the
Improvements, together with all replacements, modifications, alterations and
additions thereto.

         "Force Majeure Event" shall mean with respect to a Construction Period
Property, any event beyond the control of the Lessee, Guarantor or any
Construction Agency Person (the existence of which was not known on the Property
Closing Date with respect to such Property, or would not reasonably have been
expected to be discovered through the exercise of commercially reasonable due
diligence, by the Lessee, Guarantor, or Construction Agency Person, taking into
account the anticipated construction of Improvements and the contemplated use of
such Property) including, but not limited to, general strikes (but not any
strike or other job action involving employees of the Lessee, Guarantor or any
Construction Agency Person), acts of God, government activities or inactivities
directly interfering with the construction of the Improvements, inability to
obtain labor or materials, civil commotion and enemy action; but excluding in
all cases (a) any event, cause or condition that results from (i) an act or
omission of Lessee, Guarantor or any Construction Agency Person, (ii) a breach
by Lessee, Guarantor or any Construction Agency Person of its obligations or
representations or warranties under the Operative Agreements or any other
agreements to which it is a party, or (iii) from either the Lessee's, the
Guarantor's or any Construction Agency Person's financial condition or failure
to pay, (b) any event, cause or condition which could have been avoided or which
could be remedied or mitigated through the exercise of commercially reasonable
efforts or the expenditure of funds, (c) any event, cause or condition which
Lessee certifies does not constitute a Force Majeure Event, or (d) any Full
Recourse Event of Default.

         "Form W-8BEN" shall have the meaning specified in Section 11.2(e) of
the Participation Agreement.

                                 Appendix A-15
<PAGE>

         "Form W-8ECI" shall have the meaning specified in Section 11.2(e) of
the Participation Agreement.

         "Full Recourse Event of Default" shall mean any of the following:

                  (i) an Agency Agreement Event of Default arising in whole or
         in part as a consequence of any fraudulent act or omission of any
         Construction Agency Person in connection with the negotiation,
         execution, delivery, consummation and/or performance of any Operative
         Agreement or any other contractual agreement relating to the Property
         or the construction or work thereon;

                  (ii) an Agency Agreement Event of Default arising in whole or
         in part as a consequence of the misapplication of any Advance or any
         portion thereof or any other funds made available to, or on behalf of,
         Construction Agent or any other Construction Agency Person under any
         Operative Agreement;

                  (iii) an Agency Agreement Event of Default arising as a
         consequence of an Insolvency Event with respect to Construction Agent;

                  (iv) any Construction Agency Person shall willfully breach any
         of its respective obligations, covenants, representations or warranties
         under any Operative Agreement or any other contractual agreement or law
         relating to the Property or the construction or work thereon; or

                  (v) any Construction Agency Person shall commit any illegal
         act regarding any Property or otherwise causing any loss, cost or
         damage to any Financing Party.

         "GAAP" shall mean generally accepted accounting principles set forth in
the opinions and pronouncements of the accounting principles board of the
American Institute of Certified Public Accountants, and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession, that are applicable to the circumstances as of the
date of determination.

         "Governmental Action" shall mean all permits, authorizations,
registrations, consents, approvals, waivers, exceptions, variances, orders,
judgments, written interpretations, decrees, licenses, exemptions, publications,
filings, notices to and declarations of or with, or required by, any
Governmental Authority, or required by any Legal Requirement, and shall include,
without limitation, all environmental and operating permits and licenses that
are required for the full use, occupancy, zoning and operating of the Property.

         "Governmental Authority" shall mean any nation or government, any state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

                                 Appendix A-16
<PAGE>

         "Ground Lease" shall mean a ground lease (in form and substance
satisfactory to the Agent) respecting any Property (a) owned by any Credit Party
(or a parent corporation or any Subsidiary of any Credit Party) and leased to
the Lessor where such lease has at least a ninety-nine (99) year term and
payments set at no more than $562,000.00 per year during the Term and no more
than the fair market rental value thereafter, or (b) where such lease is subject
to such other terms and conditions as are satisfactory to the Agent.

         "Guarantor" shall mean HEALTHSOUTH Corporation, a Delaware corporation.

         "Hard Costs" shall mean all costs and expenses payable for supplies,
materials, labor and profit with respect to the Improvements under any
Construction Contract.

         "Hazardous Substance" shall mean any of the following: (a) any
petroleum or petroleum product, explosives, radioactive materials, asbestos,
formaldehyde, polychlorinated biphenyls, lead and radon gas; (b) any substance,
material, product, derivative, compound or mixture, mineral, chemical, waste,
gas, medical waste, or pollutant, in each case whether naturally occurring,
man-made or the by-product of any process, that is toxic, harmful or hazardous
to the environment or human health or safety as determined in accordance with
any Environmental Law; or (c) any substance, material, product, derivative,
compound or mixture, mineral, chemical, waste, gas, medical waste or pollutant
that would support the assertion of any claim under any Environmental Law,
whether or not defined as hazardous as such under any Environmental Law.

         "HEALTHSOUTH" shall mean HEALTHSOUTH Medical Center, Inc., an Alabama
corporation, and its successors and permitted assigns.

         "Holder Advance" shall mean any advance made by any Holder to the Owner
Trustee pursuant to the terms of the Trust Agreement or the Participation
Agreement.

         "Holder Amount" shall mean as of any date, the aggregate amount of
Holder Advances made by each Holder to the Trust Estate pursuant to Section 2 of
the Participation Agreement and Section 3.1 of the Trust Agreement less any
payments of any Holder Advances received by the Holders pursuant to Section 3.4
of the Trust Agreement.

         "Holder Commitments" shall mean the Holder Commitment of each Holder as
set forth in Schedule I to the Trust Agreement as such Schedule I may be amended
and replaced from time to time.

         "Holder Fees" shall mean all fees paid in connection with Sections 7.6
and 7.7 of the Participation Agreement.

         "Holder Overdue Rate" shall mean the lesser of (a) the then current
rate of Holder Yield respecting the particular amount in question plus two
percent (2%) and (b) the highest rate permitted by applicable law.

                                 Appendix A-17
<PAGE>

         "Holder Property Cost" shall mean with respect to a Property an amount
equal to the outstanding Holder Advances with respect thereto.

         "Holder Unused Fee" shall have the meaning given to such term in
Section 7.4 of the Participation Agreement.

         "Holder Yield" shall mean with respect to Holder Advances from time to
time either the Eurodollar Rate plus the Applicable Percentage or the ABR plus
the Applicable Percentage as elected by the Owner Trustee from time to time with
respect to such Holder Advances in accordance with the terms of the Trust
Agreement; provided, however, (a) upon delivery of the notice described in
Section 3.7(c) of the Trust Agreement, the outstanding Holder Advances of each
Holder shall bear a yield at the ABR plus the Applicable Percentage applicable
from time to time from and after the dates and during the periods specified in
Section 3.7(c) of the Trust Agreement, and (b) upon the delivery by a Holder of
the notice described in Section 11.3(e) of the Participation Agreement, the
Holder Advances of such Holder shall bear a yield at the ABR plus the Applicable
Percentage applicable from time to time after the dates and during the periods
specified in Section 11.3(e) of the Participation Agreement.

         "Holders" shall mean First Union National Bank and shall include the
other banks and financial institutions which may be from time to time holders of
Certificates in connection with the Digital Hospital Trust 2001-1.

         "Impositions" shall mean any and all liabilities, losses, expenses,
costs, charges and Liens of any kind whatsoever for fees, taxes, levies,
imposts, duties, charges, assessments or withholdings ("Taxes") including but
not limited to (i) real and personal property taxes, including without
limitation personal property taxes on any property covered by the Lease that is
classified by Governmental Authorities as personal property, and real estate or
ad valorem taxes in the nature of property taxes; (ii) sales taxes, use taxes
and other similar taxes (including rent taxes and intangibles taxes); (iii)
excise taxes; (iv) real estate transfer taxes, conveyance taxes, stamp taxes and
documentary recording taxes and fees; (v) taxes that are or are in the nature of
franchise, income, value added, privilege and doing business taxes, license and
registration fees; (vi) assessments on any Property, including without
limitation all assessments for public Improvements or benefits, whether or not
such improvements are commenced or completed within the Term; and (vii) taxes,
Liens, assessments or charges asserted, imposed or assessed by the PBGC or any
governmental authority succeeding to or performing functions similar to, the
PBGC; and in each case all interest, additions to tax and penalties thereon,
which at any time prior to, during or with respect to the Term or in respect of
any period for which the Lessee shall be obligated to pay Supplemental Rent, may
be levied, assessed or imposed by any Governmental Authority upon or with
respect to (a) any Property or any part thereof or interest therein; (b) the
leasing, financing, refinancing, demolition, construction, substitution,
subleasing, assignment, control, condition, occupancy, servicing, maintenance,
repair, ownership, possession, activity conducted on, delivery, insuring, use,
operation, improvement, sale, transfer of title, return or other disposition of
such Property or any part thereof or interest therein; (c) the Notes, other
indebtedness with respect to any Property, or the Certificates, or any part
thereof or interest therein; (d) the rentals, receipts or earnings arising from
any Property or any part thereof or interest therein; (e) the Operative
Agreements, the performance thereof, or any payment made or accrued pursuant

                                 Appendix A-18
<PAGE>

thereto; (f) the income or other proceeds received with respect to any Property
or any part thereof or interest therein upon the sale or disposition thereof;
(g) any contract (including the Agency Agreement) relating to the construction,
acquisition or delivery of the Improvements or any part thereof or interest
therein; (h) the issuance of the Notes or the Certificates; (i) the Owner
Trustee, the Trust or the Trust Estate; or (j) otherwise in connection with the
transactions contemplated by the Operative Agreements.

         "Improvements" shall mean, with respect to the construction,
renovations and/or Modifications on any Land, all buildings, structures,
Fixtures, and other improvements of every kind existing at any time and from
time to time on or under the Land purchased or otherwise acquired using the
proceeds of the Loans or the Holder Advances or which is subject to a Ground
Lease, together with any and all appurtenances to such buildings, structures or
improvements, including without limitation sidewalks, utility pipes, conduits
and lines, parking areas and roadways, and including without limitation all
Modifications and other additions to or changes in the Improvements at any time,
including without limitation (a) any Improvements existing as of the Property
Closing Date as such Improvements may be referenced on the applicable
Requisition and (b) any Improvements made subsequent to such Property Closing
Date.

         "Incorporated Covenants" shall have the meaning given to such term in
Section 28.1 of the Lease.

         "Incorporated Representations and Warranties" shall have the meaning
given to such term in Section 28.1 of the Lease.

         "Indebtedness" of a Person shall mean, without duplication, such
Person's:

                  (a) obligations for borrowed money;

                  (b) obligations representing the deferred purchase price of
         Property (whether real, personal, tangible, intangible or mixed) or
         services (other than accounts payable arising in the ordinary course of
         such Person's business payable on terms customary in the trade);

                  (c) obligations, whether or not assumed, secured by liens or
         payable out of the proceeds or production from property now or
         hereafter owned or acquired by such Person;

                  (d) obligations which are evidenced by notes, acceptances or
         other instruments;

                  (e) Capitalized Lease obligations and the principal balance
         outstanding under any synthetic lease, tax retention operating lease,
         off-balance sheet loan or similar off-balance sheet financing product
         to which such Person is a party, where such transaction is considered
         borrowed money indebtedness for tax purposes but is classified as an
         operating lease in accordance with GAAP;

                                 Appendix A-19
<PAGE>

                  (f) net liabilities under interest rate swap, exchange or cap
         agreements; and

                  (g) contingent obligations.

         "Indemnified Person" shall mean the Lessor, the Owner Trustee, in its
individual and its trust capacity, the Trust, the Trust Company, the Agent,
First Union Securities, Inc., the Holders, the Lenders and their respective
successors, assigns, directors, shareholders, partners, officers, employees,
agents and Affiliates.

         "Indemnity Provider" shall mean, respecting each Property, the Lessee
and during the Construction Period, the Construction Agent.

         "Ineligible Person" shall have the meaning given to such term in
Section 30.15 of the Lease.

         "Initial Closing Date" shall mean December 28, 2001.

         "Insolvency Event" shall mean each event described in Sections 17.1(g),
(h), (i), and/or (j) of the Lease Agreement.

         "Instruments" shall have the meaning given to such term in Section 1 of
the Security Agreement.

         "Insurance Requirements" shall mean all terms and conditions of any
insurance policy either required by the Lease to be maintained by the Lessee or
required by the Agency Agreement to be maintained by the Construction Agent, and
all requirements of the issuer of any such policy and, regarding self insurance,
any other requirements of the Lessee.

         "Interest Period" shall mean during the Commitment Period as to any
Eurodollar Loan or Eurodollar Holder Advance (i) with respect to the initial
Interest Period, the period beginning on the date of the first Eurodollar Loan
and Eurodollar Holder Advance and ending one (1) month thereafter, and (ii)
thereafter, each period commencing on the last day of the next preceding
Interest Period applicable to such Eurodollar Loan or Eurodollar Holder Advance
and ending one (1) month thereafter and for Interest Periods commencing after
the Commitment Period, each period commencing on the last day of the next
preceding Interest Period applicable to such Eurodollar Loan or Eurodollar
Holder Advance and ending one (1) month, two (2) months, three (3) months or (to
the extent available to all Lenders and all Holders) six (6) months thereafter,
as selected by the Lessor by irrevocable notice to the Agent (in the case of a
Eurodollar Loan) or by the Owner Trustee (in the case of a Eurodollar Holder
Advance) in each case not less than three (3) Business Days prior to the last
day of the then current Interest Period with respect thereto; provided, however,
that all of the foregoing provisions relating to Interest Periods are subject to
the following: (A) if any Interest Period would end on a day which is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day (except that where the next succeeding Business Day falls in the
next succeeding calendar month, then on the next preceding Business Day), (B) no
Interest Period shall extend beyond the Maturity Date or the Expiration Date, as
the case may be and (C) where an Interest Period begins on a day for which there

                                 Appendix A-20
<PAGE>

is no numerically corresponding day in the calendar month in which the Interest
Period is to end, such Interest Period shall end on the last Business Day of
such calendar month, (D) there shall not be more than two (2) Interest Periods
outstanding during the Commitment Period and more than four (4) Interest Periods
outstanding at any one (1) time after the Commitment Period.

         "Investment Company Act" shall mean the Investment Company Act of 1940,
as amended, together with the rules and regulations promulgated thereunder.

         "Land" shall mean a parcel of real property described on (a) the
Requisition issued by the Construction Agent on the Property Closing Date
relating to such parcel and (b) the schedules to each applicable Lease
Supplement executed and delivered in accordance with the requirements of Section
2.4 of the Lease.

         "Land Cost" shall have the meaning specified in Section 5.4 of the
Agency Agreement.

         "Law" shall mean any statute, law, ordinance, regulation, rule,
directive, order, writ, injunction or decree of any Tribunal.

         "Lease" or "Lease Agreement" shall mean the Lease Agreement dated on or
about the Initial Closing Date, between the Lessor and the Lessee, together with
any Lease Supplements thereto.

         "Lease Default" shall mean any event or condition which, with the lapse
of time or the giving of notice, or both, would constitute a Lease Event of
Default.

         "Lease Event of Default" shall have the meaning specified in Section
17.1 of the Lease.

         "Lease Supplement" shall mean each Lease Supplement substantially in
the form of Exhibit A to the Lease, together with all attachments and schedules
thereto.

         "Legal Requirements" shall mean all foreign, federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions affecting the Owner Trustee, any
Holder, the Lessor, any Credit Party, the Agent, any Lender or any Property,
Land, Improvement, Equipment or the taxation, demolition, construction, use or
alteration of such Improvements, whether now or hereafter enacted and in force,
including without limitation any that require repairs, modifications or
alterations in or to any Property or in any way limit the use and enjoyment
thereof (including without limitation all building, zoning and fire codes and
the Americans with Disabilities Act of 1990, 42 U.S.C. ss. 12101 et. seq., and
any other similar federal, state or local laws or ordinances and the regulations
promulgated thereunder) and any that may relate to environmental requirements
(including without limitation all Environmental Laws), and all permits,
certificates of occupancy, licenses, authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained
in any instruments which are either of record or known to any Credit Party
affecting any Property or the Appurtenant Rights.

                                 Appendix A-21
<PAGE>

         "Lender Commitments" shall mean the Lender Commitment of each Lender as
set forth in Schedule 2.1 to the Credit Agreement as such Schedule 2.1 may be
amended and replaced from time to time.

         "Lender Financing Statements" shall mean UCC financing statements and
fixture filings appropriately completed and executed for filing in the
applicable jurisdiction in order to procure a security interest in favor of the
Agent in the Collateral subject to the Security Documents.

         "Lender Unused Fee" shall have the meaning given to such term in
Section 7.4 of the Participation Agreement.

         "Lenders" shall mean First Union National Bank and shall include the
other banks and financial institutions which may be from time to time party to
the Participation Agreement and the Credit Agreement.

         "Lessee" shall mean HEALTHSOUTH Medical Center, Inc., an Alabama
corporation, as the lessee under the Operative Agreements.

         "Lessor" shall mean the Owner Trustee, as the lessor under the
Operative Agreements.

         "Lessor Basic Rent" shall mean the scheduled Holder Yield due on the
Holder Advances on any Scheduled Interest Payment Date pursuant to the Trust
Agreement (but not including interest on (a) any such scheduled Holder Yield due
on the Holder Advances prior to the Rent Commencement Date with respect to the
Property to which such Holder Advances relate or (b) overdue amounts under the
Trust Agreement or otherwise).

         "Lessor Financing Statements" shall mean UCC financing statements and
fixture filings appropriately completed and executed for filing in the
applicable jurisdictions in order to protect the Lessor's interest under the
Lease to the extent the Lease is a security agreement or a mortgage.

         "Lessor Lien" shall mean any Lien arising as a result of (a) any claim
against the Lessor or the Trust Company, in its individual capacity, not
resulting from the transactions contemplated by the Operative Agreements, (b)
any act or omission of the Lessor or the Trust Company, in its individual
capacity, which is not required by the Operative Agreements or is in violation
of any of the terms of the Operative Agreements, (c) any claim against the
Lessor or the Trust Company, in its individual capacity, with respect to Taxes
or Transaction Expenses against which the Lessee is not required to indemnify
the Lessor or the Trust Company, in its individual capacity, pursuant to Section
11 of the Participation Agreement or (d) any claim against the Lessor arising
out of any transfer by the Lessor of all or any portion of the interest of the
Lessor in the Properties, the Trust Estate or the Operative Agreements other
than the transfer of title to or possession of any Properties by the Lessor
pursuant to and in accordance with the Lease, the Credit Agreement, the Security
Agreement or the Participation Agreement or pursuant to the exercise of the
remedies set forth in Article XVII of the Lease.

                                 Appendix A-22
<PAGE>

         "Lessor Obligations" shall mean the obligations of State Street Bank
and Trust Company of Connecticut, National Association, as Owner Trustee in any
and all capacities under and with respect to the Operative Agreements and each
Property.

         "Lien" shall mean any mortgage, pledge, security interest, encumbrance,
lien, option or charge of any kind.

         "Loan Basic Rent" shall mean the scheduled interest due on the Loans on
any Scheduled Interest Payment Date pursuant to the Credit Agreement (but not
including interest on (a) any such Loan due prior to the Rent Commencement Date
with respect to the Property to which such Loan relates or (b) any overdue
amounts under Section 2.8(b) of the Credit Agreement or otherwise).

         "Loan Property Cost" shall mean, with respect to each Property at any
date of determination, an amount equal to (a) the aggregate principal amount all
Loans (including without limitation all Acquisition Loans and Construction
Loans) made on or prior to such date with respect to such Property minus (b) the
aggregate amount of prepayments or repayments as the case may be of the Loans
allocated to reduce the Loan Property Cost of such Property pursuant to Section
2.6(c) of the Credit Agreement.

         "Loans" shall mean the loans extended pursuant to the Credit Agreement
and shall include both the Tranche A Loans and the Tranche B Loans.

         "Majority Holders" shall mean at any time, Holders whose Holder
Advances outstanding represent at least fifty-one percent (51%) of (a) the
aggregate Holder Advances outstanding or (b) to the extent there are no Holder
Advances outstanding, the aggregate Holder Commitments.

         "Majority Lenders" shall mean (a) prior to the Note Acquisition Date,
Lenders whose Loans outstanding represent at least fifty-one percent (51%) of
(i) the aggregate Loans outstanding or (ii) to the extent there are no Loans
outstanding, the aggregate of the Lender Commitments and (b) on or after the
Note Acquisition Date, Tranche B Lenders and Tranche A Lenders other than any
Credit Party or any of their Affiliates or any assignee thereof, if any, whose
Loans outstanding represent at least fifty-one percent (51%)of the aggregate
Loans outstanding, except Loans held by any Credit Party or any of their
Affiliates or any assignee thereof.

         "Majority Secured Parties" shall mean (a) prior to the Note Acquisition
Date, Lenders and Holders whose Loans and Holder Advances outstanding represent
at least fifty-one percent (51%) of (i) the aggregate Advances outstanding or
(ii) to the extent there are no Advances outstanding, the sum of the aggregate
Holder Commitments plus the aggregate Lender Commitments and (b) on or after the
Note Acquisition Date, Holders, Tranche B Lenders and Tranche A Lenders other
than any Credit Party or any of their Affiliates or any assignee thereof, if
any, whose Holder Advances and Loans represent at least fifty-one percent
(51%)of the aggregate Advances outstanding, except Loans held by any Credit
Party; or any of their Affiliates or any assignee thereof.

                                 Appendix A-23
<PAGE>

         "Marketing Period" shall mean, if the Lessee has given a Sale Notice in
accordance with Section 20.1 of the Lease, the period commencing on the date
such Sale Notice is given and ending on the Expiration Date.

         "Material Adverse Effect" shall mean a material adverse effect on (a)
the business, condition (financial or otherwise), assets, liabilities or
operations of the Credit Parties (on a consolidated basis), (b) the ability of
any Credit Party to perform its respective obligations under any Operative
Agreement to which it is a party, (c) the validity or enforceability of any
Operative Agreement or the rights and remedies of the Agent, the Lenders, the
Holders, or the Lessor thereunder, (d) the validity, priority or enforceability
of any Lien on any Property created by any of the Operative Agreements, or (e)
the value, utility or useful life of any Property or the use, or ability of the
Lessee to use, any Property for the purpose for which it was intended.

         "Maturity Date" shall mean the Expiration Date or to the extent there
is an Extended Remarketing Period, the date upon which a sale of the Properties
occurs or if there is no such sale during the Extended Remarketing Period, the
last day of such period.

         "Maximum Residual Guarantee Amount" shall mean an amount equal to the
product of the aggregate Adjusted Property Cost for all Properties times
eighty-five percent (85%) less the sum of accreted value of prepaid rent
payments made by Lessee regarding a Construction Period Property in accordance
with Section 3.3 of the Agency Agreement and Section 3.6 of the Lease.

         "Medicaid Certification" means certification by the Healthcare
Financing Administration (HCFA) or a state agency or entity under contract with
the Healthcare Financing Administration (HCFA) that a health care operation is
in compliance with all the conditions of participation set forth in the Medicaid
Regulations.

         "Medicaid Provider Agreement" means an agreement entered into between a
state agency or other entity administering the Medicaid program and a health
care operation under which the health care operation agrees to provide services
for Medicaid patients in accordance with the terms of the agreement and Medicaid
Regulations.

         "Medicaid Regulations" means, collectively, (i) all federal statutes
(whether set forth in Title XIX of the Social Security Act or elsewhere)
affecting the medical assistance program established by Title XIX of the Social
Security Act and any statutes succeeding thereto; (ii) all applicable provisions
of all federal rules, regulations, manuals and orders of all Governmental
Authorities promulgated pursuant to or in connection with the statutes described
in clause (i) above and all federal administrative, reimbursement and other
guidelines of all Governmental Authorities having the force of law promulgated
pursuant to or in connection with the statutes described in clause (i) above;
(iii) all state statutes and plans for medical assistance enacted in connection
with the statutes and provisions described in clauses (i) and (ii) above; and
(iv) all applicable provisions of all rules, regulations, manuals and orders of
all Governmental Authorities promulgated pursuant to or in connection with the
statutes described in clause (iii) above and all state administrative,
reimbursement and other guidelines of all Governmental Authorities having the
force of law promulgated pursuant to or in connection with the statutes

                                 Appendix A-24
<PAGE>

described in clause (ii) above, in each case as may be amended, supplemented or
otherwise modified from time to time.

         "Medicare Certification" means certification by HCFA or a state agency
or entity under contract with HCFA that a health care operation is in compliance
with all the conditions of participation set forth in the Medicare Regulations.

         "Medicare Provider Agreement" means an agreement entered into between a
state agency or other entity administering the Medicare program and a health
care operation under which the health care operation agrees to provide services
for Medicare patients in accordance with the terms of the agreement and Medicare
Regulations.

         "Medicare Regulations" means, collectively, all federal statutes
(whether set forth in Title XVIII of the Social Security Act or elsewhere)
affecting the health insurance program for the aged and disabled established by
Title XVIII of the Social Security Act and any statutes succeeding thereto;
together with all applicable provisions of all rules, regulations, manuals and
orders and administrative, reimbursement and other guidelines having the force
of law of all Governmental Authorities (including without limitation, Health and
Human Services ("HHS"), HCFA, the Office of the Inspector General for HHS, or
any Person succeeding to the functions of any of the foregoing) promulgated
pursuant to or in connection with any of the foregoing having the force of law,
as each may be amended, supplemented or otherwise modified from time to time.

         "Modifications" shall have the meaning specified in Section 11.1(a) of
the Lease.

         "Moody's" shall mean Moody's Investor Service, Inc.

         "Mortgage Instrument" shall mean any mortgage, deed of trust or any
other instrument executed by the Owner Trustee and the Lessee (or regarding any
Property subject to a Ground Lease, the applicable Affiliate of the Lessee) in
favor of the Agent (for the benefit of the Lenders and the Holders) and
evidencing a Lien on the Property, in form and substance reasonably acceptable
to the Agent.

         "Multiemployer Plan" shall mean any plan described in Section
4001(a)(3) of ERISA to which contributions are or have been made or required by
any Credit Party or any of its Subsidiaries or ERISA Affiliates.

         "Multiple Employer Plan" shall mean a plan to which any Credit Party or
any ERISA Affiliate and at least one (1) other employer other than an ERISA
Affiliate is making or accruing an obligation to make, or has made or accrued an
obligation to make, contributions.

         "New Facility" shall have the meaning given to such term in Section
28.1 of the Lease.

         "Note Acquisition Date" shall mean the date upon which the Lessee
acquires the Tranche A Note pursuant to Section 8.3(w) of the Participation
Agreement.

                                 Appendix A-25
<PAGE>

         "Notes" shall mean those notes issued to the Lenders pursuant to the
Credit Agreement and shall include both the Tranche A Notes and the Tranche B
Notes.

         "Obligations" shall have the meaning given to such term in Section 1 of
the Security Agreement.

         "Officer's Certificate" with respect to any person shall mean a
certificate executed on behalf of such person by a Responsible Officer who has
made or caused to be made such examination or investigation as is necessary to
enable such Responsible Officer to express an informed opinion with respect to
the subject matter of such Officer's Certificate.

         "Operative Agreements" shall mean the following: the Participation
Agreement, the Agency Agreement, the Trust Agreement, the Certificates, the
Credit Agreement, the Notes, the Lease, the Lease Supplements (and memoranda of
the Lease and each Lease Supplement in a form reasonably acceptable to the
Agent), the Security Agreement, the Mortgage Instruments, the Cash Collateral
Agreement, the Control Agreement, the other Security Documents, the Ground
Leases, the Deeds and the Bills of Sale and any and all other agreements,
documents and instruments executed in connection with any of the foregoing.

         "Original Executed Counterpart" shall have the meaning given to such
term in Section 5 of Exhibit A to the Lease.

         "Overdue Interest" shall mean any interest payable pursuant to Section
2.8(b) of the Credit Agreement.

         "Overdue Rate" shall mean (a) with respect to the Loan Basic Rent, and
any other amount owed under or with respect to the Credit Agreement or the
Security Documents, the rate specified in Section 2.8(b) of the Credit
Agreement, (b) with respect to the Lessor Basic Rent, the Holder Yield and any
other amount owed under or with respect to the Trust Agreement, the Holder
Overdue Rate, and (c) with respect to any other amount, the amount referred to
in clause (y) of Section 2.8(b) of the Credit Agreement.

         "Owner Trustee," "Borrower" or "Lessor" shall mean State Street Bank
and Trust Company of Connecticut, National Association, not individually, except
as expressly stated in the various Operative Agreements, but solely as Owner
Trustee for Digital Hospital Trust 2001-1, and any successor, replacement and/or
additional Owner Trustee expressly permitted under the Operative Agreements.

         "Parent" shall mean HEALTHSOUTH Corporation, a Delaware corporation.

         "Parent Credit Agreement" shall mean that certain credit agreement
dated as of June 23, 1998 between the Parent, Bank of America, National
Association (formerly NationsBank, National Association), as the administrative
agent and the lenders party thereto from time to time, as such may hereafter be
amended, modified, supplemented, restated and/or replaced from time to time.

                                 Appendix A-26
<PAGE>

         "Parent Credit Agreement Event of Default" shall mean an Event of
Default as defined in Article IX of the Parent Credit Agreement.

         "Participant" shall have the meaning given to such term in Section 9.7
of the Credit Agreement.

         "Participation Agreement" shall mean the Participation Agreement dated
on or about the Initial Closing Date, among the Lessee, the Guarantor, the Owner
Trustee, not in its individual capacity except as expressly stated therein, the
Holders, the Lenders and the Agent.

         "Payment Date" shall mean any Scheduled Interest Payment Date and any
date on which interest or Holder Yield in connection with a prepayment of
principal on the Loans or of the Holder Advances is due under the Credit
Agreement or the Trust Agreement.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation created by
Section 4002(a) of ERISA or any successor thereto.

         "Pension Plan" shall mean a "pension plan", as such term is defined in
section 3(2) of ERISA, which is subject to title IV of ERISA (other than a
Multiemployer Plan), and to which any Credit Party or any ERISA Affiliate may
have any liability, including without limitation any liability by reason of
having been a substantial employer within the meaning of section 4063 of ERISA
at any time during the preceding five (5) years, or by reason of being deemed to
be a contributing sponsor under section 4069 of ERISA.

         "Permitted Facility" shall mean a digital hospital and medical office
building fit for commercial operation.

         "Permitted Liens" shall mean:

                  (a) the respective rights and interests of the parties to the
         Operative Agreements as provided in the Operative Agreements;

                  (b) the rights of any sublessee or assignee under a sublease
         or an assignment expressly permitted by the terms of the Lease for no
         longer than the duration of the Lease;

                  (c) Liens for Taxes that either are not yet due or are being
         contested in accordance with the provisions of Section 13.1 of the
         Lease;

                  (d) Liens arising by operation of law, materialmen's,
         mechanics', workmen's, repairmen's, employees', carriers',
         warehousemen's and other like Liens relating to the construction of the
         Improvements or in connection with any Modifications or arising in the
         ordinary course of business for amounts that either are not more than
         thirty (30) days past due or are being diligently contested in good
         faith by appropriate proceedings, so long as such proceedings satisfy
         the conditions for the continuation of proceedings to contest Taxes set
         forth in Section 13.1 of the Lease;

                                 Appendix A-27
<PAGE>

                  (e) Liens of any of the types referred to in clause (d) above
         that have been bonded for not less than the full amount in dispute (or
         as to which other security arrangements satisfactory to the Lessor and
         the Agent have been made), which bonding (or arrangements) shall comply
         with applicable Legal Requirements, and shall have effectively stayed
         any execution or enforcement of such Liens;

                  (f) Liens arising out of judgments or awards with respect to
         which appeals or other proceedings for review are being prosecuted in
         good faith and for the payment of which adequate reserves have been
         provided as required by GAAP or other appropriate provisions have been
         made, so long as such proceedings have the effect of staying the
         execution of such judgments or awards and satisfy the conditions for
         the continuation of proceedings to contest Taxes set forth in Section
         13.1 of the Lease;

                  (g) Liens described in the title policy delivered pursuant to
         Section 5.3(g) of the Participation Agreement and Liens granted
         pursuant to Section 8.5 of the Participation Agreement; and

                  (h) Lessor Liens.

         "Person" shall mean any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization, governmental authority or any other entity.

         "Plans and Specifications" shall mean, with respect to Improvements,
the plans and specifications for such Improvements to be constructed or already
existing, as such Plans and Specifications may be amended, modified or
supplemented from time to time in accordance with the terms of the Operative
Agreements.

         "Prime Lending Rate" shall have the meaning given to such term in the
definition of ABR.

         "Property" shall mean, with respect to each Permitted Facility that is
(or is to be) acquired, constructed and/or renovated pursuant to the terms of
the Operative Agreements, the Land and each item of Equipment and the various
Improvements, in each case located on such Land, including without limitation
each Construction Period Property, each Property subject to a Ground Lease and
each Property for which the Term has commenced.

         "Property Acquisition Cost" shall mean the cost to the Lessor to
purchase a Property on a Property Closing Date.

         "Property Closing Date" shall mean the date on which the Lessor
purchases or ground leases a Property or, with respect to the first Advance, the
date on which the Lessor seeks reimbursement for Property previously purchased
by the Lessor.

                                 Appendix A-28
<PAGE>

         "Property Cost" shall mean with respect to a Property the aggregate
amount (and/or the various items and occurrences giving rise to such amounts) of
the Loan Property Cost plus the Holder Property Cost for such Property (as such
amounts shall be increased equally among all Properties, including, without
limitation, all Construction Period Properties and all Properties subject to a
Lease Supplement, respecting the Holder Advances and the Loans extended from
time to time to pay for the Transaction Expenses, fees, expenses, disbursements,
indemnity payments and other amounts pursuant to the Operative Agreements).

         "Purchase Option" shall have the meaning given to such term in Section
20.1 of the Lease.

         "Purchasing Lender" shall have the meaning given to such term in
Section 9.8(a) of the Credit Agreement.

         "Rating" means the rating of senior unsecured debt of the Parent in
effect at any time which rating is made by either of Moody's or S&P.

         "Register" shall have the meaning given to such term in Section 9.9(a)
of the Credit Agreement.

         "Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

         "Regulation T" shall mean Regulation T of the Board of Governors of the
Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

         "Regulation U" shall mean Regulation U of the Board of Governors of the
Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

         "Regulation X" shall mean Regulation X of the Board of Governors of the
Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

         "Release" shall mean any release, pumping, pouring, emptying,
injecting, escaping, leaching, dumping, seepage, spill, leak, flow, discharge,
disposal or emission of a Hazardous Substance.

         "Renewal Term" shall have the meaning given to such term in Section 2.2
of the Lease.

         "Rent" shall mean, collectively, the Basic Rent and the Supplemental
Rent, in each case payable under the Lease.

         "Rent Commencement Date" shall mean, regarding each Property, the
Completion Date.

                                 Appendix A-29
<PAGE>

         "Reportable Event" shall have the meaning specified in ERISA.

         "Requested Funds" shall mean any funds requested by the Lessee or the
Construction Agent, as applicable, in accordance with Section 5 of the
Participation Agreement.

         "Requisition" shall have the meaning specified in Section 4.2 of the
Participation Agreement.

         "Responsible Officer" shall mean the Chairman or Vice Chairman of the
Board of Directors, the Chairman or Vice Chairman of the Executive Committee of
the Board of Directors, the President, any Senior Vice President or Executive
Vice President, any Vice President, the Secretary, any Assistant Secretary, the
Treasurer, or any Assistant Treasurer, except that when used with respect to the
Trust Company or the Owner Trustee, "Responsible Officer" shall also include the
Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer,
the Controller and any Assistant Controller or any other officer of the Trust
Company or the Owner Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

         "S&P" shall mean Standard & Poor's Rating Group, a division of The
McGraw Hill Companies.

         "Sale Date" shall mean the Expiration Date.

         "Sale Notice" shall mean a notice given to the Lessor in connection
with the election by the Lessee of its Sale Option.

         "Sale Option" shall have the meaning given to such term in Section 20.1
of the Lease.

         "Scheduled Interest Payment Date" shall mean (a) as to any Eurodollar
Loan or Eurodollar Holder Advance, the last day of the Interest Period
applicable to such Eurodollar Loan or Eurodollar Holder Advance (or respecting
any Eurodollar Loan or Eurodollar Holder Advance having an Interest Period of
six (6) months, the three (3) month anniversary of such Interest Period), (b) as
to any ABR Loan or any ABR Holder Advance, the fifteenth day of each month,
unless such day is not a Business Day and in such case on the next occurring
Business Day and (c) as to all Loans and Holder Advances, the date of any
voluntary or involuntary payment, prepayment, return or redemption, and the
Maturity Date or the Expiration Date, as the case may be.

         "Secured Parties" shall have the meaning given to such term in the
Security Agreement.

         "Securities Act" shall mean the Securities Act of 1933, as amended,
together with the rules and regulations promulgated thereunder.

                                 Appendix A-30
<PAGE>

         "Security Agreement" shall mean the Security Agreement dated on or
about the Initial Closing Date between the Lessor and the Agent, for the benefit
of the Secured Parties, and accepted and agreed to by the Lessee.

         "Security Documents" shall mean the collective reference to the
Security Agreement the Cash Collateral Agreement, the Control Agreement, the
Mortgage Instruments, (to the extent the Lease is construed as a security
instrument) the Lease, the UCC Financing Statements and all other security
documents hereafter delivered to the Agent granting a lien on any asset or
assets of any Person to secure the obligations and liabilities of the Lessor
under the Operative Agreements or to secure any guarantee of any such
obligations and liabilities or to secure the obligations and liabilities of the
Construction Agent and/or the Lessee- under the Operative Agreements or to
secure any guarantee of any such obligations and liabilities.

         "Soft Costs" shall mean all costs which are ordinarily and reasonably
incurred in relation to the acquisition, development, installation,
construction, improvement and testing of the Properties other than Hard Costs,
including without limitation structuring fees, administrative fees, legal fees,
upfront fees, fees and expenses related to appraisals, title examinations, title
insurance, document recordation, surveys, environmental site assessments,
geotechnical soil investigations and similar costs and professional fees
customarily associated with a real estate closing, the Lender Unused Fee, the
Holder Unused Fee, fees and expenses of the Owner Trustee payable or
reimbursable under the Operative Agreements and costs and expenses incurred
pursuant to Sections 7.3(a) and 7.3(b) of the Participation Agreement.

         "Subsidiary" shall mean, as to any Person, any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power to elect a majority of the board of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person, or by one (1)
or more Subsidiaries, or by such Person and one (1) or more Subsidiaries.

         "Supplemental Amounts" shall have the meaning given to such term in
Section 9.18 of the Credit Agreement.

         "Supplemental Rent" shall mean all amounts, liabilities and obligations
(other than Basic Rent) which the Lessee assumes or agrees to pay to the Lessor,
the Trust Company, the Holders, the Agent, the Lenders or any other Person under
the Lease or under any of the other Operative Agreements including without
limitation payments of the Termination Value and the Maximum Residual Guarantee
Amount and all indemnification amounts, liabilities and obligations.

         "Taxes" shall have the meaning specified in the definition of
"Impositions".

         "Term" shall have the meaning specified in Section 2.2 of the Lease.

         "Termination Date" shall have the meaning specified in Section 16.2(a)
of the Lease.

                                 Appendix A-31
<PAGE>

         "Termination Event" shall mean (a) with respect to any Pension Plan,
the occurrence of a Reportable Event or an event described in Section 4062(e) of
ERISA, (b) the withdrawal of any Credit Party or any ERISA Affiliate from a
Multiple Employer Plan during a plan year in which it was a substantial employer
(as such term is defined in Section 4001(a)(2) of ERISA), or the termination of
a Multiple Employer Plan, (c) the distribution of a notice of intent to
terminate a Plan or Multiemployer Plan pursuant to Section 4041(a)(2) or 4041A
of ERISA, (d) the institution of proceedings to terminate a Plan or
Multiemployer Plan by the PBGC under Section 4042 of ERISA, (e) any other event
or condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan or
Multiemployer Plan, or (f) the complete or partial withdrawal of any Credit
Party or any ERISA Affiliate from a Multiemployer Plan.

         "Termination Notice" shall have the meaning specified in Section 16.1
of the Lease.

         "Termination Value" shall mean the sum of (a) either (i) with respect
to all Properties, an amount equal to the aggregate outstanding Property Cost
for all the Properties, or (ii) with respect to a particular Property, an amount
equal to the Property Cost allocable to such Property, plus (b) respecting the
amounts described in each of the foregoing subclause (i) or (ii), as applicable,
any and all accrued but unpaid interest on the Loans and any and all accrued and
unpaid Holder Yield on the Holder Advances related to the applicable Property
Cost, plus (c) to the extent the same is not duplicative of the amounts payable
under clause (b) above, all other Rent and other amounts then due and payable or
accrued under the Agency Agreement, Lease and/or under any other Operative
Agreement (including without limitation amounts under Sections 11.1 and 11.2 of
the Participation Agreement and all costs and expenses referred to in clause
FIRST of Section 22.2 of the Lease).

         "Tranche A Commitments" shall mean the obligation of the Tranche A
Lenders to make the Tranche A Loans to the Lessor in an aggregate principal
amount at any one (1) time outstanding not to exceed the aggregate of the
amounts set forth opposite each Tranche A Lender's name on Schedule 2.1 to the
Credit Agreement, as such amount may be increased or reduced from time to time
in accordance with the provisions of the Operative Agreements; provided, no
Tranche A Lender shall be obligated to make Tranche A Loans in excess of such
Tranche A Lender's share of the Tranche A Commitments as set forth adjacent to
such Tranche A Lender's name on Schedule 2.1 to Credit Agreement.

         "Tranche A Lenders" shall mean First Union National Bank and shall
include the several banks and other financial institutions from time to time
party to the Credit Agreement that commit to make the Tranche A Loans.

         "Tranche A Loans" shall mean the Loans made pursuant to the Tranche A
Commitment.

         "Tranche A Note" shall have the meaning given to it in Section 2.2 of
the Credit Agreement.

         "Tranche B Commitments" shall mean the obligation of the Tranche B
Lenders to make the Tranche B Loans to the Lessor in an aggregate principal
amount at any one (1) time outstanding not to exceed the aggregate of the

                                 Appendix A-32
<PAGE>

amounts set forth opposite each Tranche B Lender's name on Schedule 2.1 to the
Credit Agreement, as such amount may be increased or reduced from time to time
in accordance with the provisions of the Operative Agreements; provided, no
Tranche B Lender shall be obligated to make Tranche B Loans in excess of such
Tranche B Lender's share of the Tranche B Commitments as set forth adjacent to
such Tranche B Lender's name on Schedule 2.1 to Credit Agreement.

         "Tranche B Lenders" shall mean First Union National Bank and shall
include the several banks and other financial institutions from time to time
party to the Credit Agreement that commit to make the Tranche B Loans.

         "Tranche B Loan" shall mean the Loans made pursuant to the Tranche B
Commitment.

         "Tranche B Note" shall have the meaning given to it in Section 2.2 of
the Credit Agreement.

         "Transaction Expenses" shall mean all Soft Costs and all other costs
and expenses incurred in connection with the preparation, execution and delivery
of the Operative Agreements and the transactions contemplated by the Operative
Agreements including without limitation all costs and expenses described in
Section 7.1 of the Participation Agreement and the following:

                  (a) the reasonable fees, out-of-pocket expenses and
         disbursements of counsel in negotiating the terms of the Operative
         Agreements and the other transaction documents, preparing for the
         closings under, and rendering opinions in connection with, such
         transactions and in rendering other services customary for counsel
         representing parties to transactions of the types involved in the
         transactions contemplated by the Operative Agreements;

                  (b) the reasonable fees, out-of-pocket expenses and
         disbursements of accountants for any Credit Party in connection with
         the transaction contemplated by the Operative Agreements;

                  (c) any and all other reasonable fees, charges or other
         amounts payable to the Lenders, the Agent, the Holders, the Owner
         Trustee or any broker which arises under any of the Operative
         Agreements;

                  (d) any other reasonable fee, out-of-pocket expenses,
         disbursement or cost of any party to the Operative Agreements or any of
         the other transaction documents; and

                  (e) any and all Taxes and fees incurred in recording or filing
         any Operative Agreement or any other transaction document, any deed,
         declaration, mortgage, security agreement, notice or financing
         statement with any public office, registry or governmental agency in
         connection with the transactions contemplated by the Operative
         Agreements.

                                 Appendix A-33
<PAGE>

         "Tribunal" shall mean any state, commonwealth, federal, foreign,
territorial, or other court or government body, subdivision agency, department,
commission, board, bureau or instrumentality of a governmental body.

         "Trust" shall mean the Digital Hospital Trust 2001-1.

         "Trust Agreement" shall mean the Trust Agreement dated on or about the
Initial Closing Date between the Holders and the Owner Trustee.

         "Trust Company" shall mean State Street Bank and Trust Company of
Connecticut, National Association, in its individual capacity, and any successor
owner trustee under the Trust Agreement in its individual capacity.

         "Trust Estate" shall have the meaning specified in Section 2.2 of the
Trust Agreement.

         "Type" shall mean, as to any Loan, whether it is an ABR Loan or a
Eurodollar Loan.

         "UCC Financing Statements" shall mean collectively the Lender Financing
Statements and the Lessor Financing Statements.

         "Unanimous Vote Matters" shall have the meaning given it in Section
12.4 of the Participation Agreement.

         "Unfunded Amount" shall have the meaning specified in Section 3.2 of
the Agency Agreement.

         "Unfunded Liability" shall mean, with respect to any Plan, at any time,
the amount (if any) by which (a) the present value of all benefits under such
Plan exceeds (b) the fair market value of all Plan assets allocable to such
benefits, all determined as of the then most recent valuation date for such
Plan, but only to the extent that such excess represents a potential liability
of the Company or any member of the Controlled Group to the PBGC or such Plan
under Title IV of ERISA.

         "Uniform Commercial Code" and "UCC" shall mean the Uniform Commercial
Code as in effect in any applicable jurisdiction.

         "Uninsurable Force Majeure Events" shall mean, subject to the next
sentence, such events that are outside of the control of the Lessee, Guarantor
or any Construction Agency Person for which no insurance was available on the
Initial Closing Date. Uninsurable Force Majeure Events shall be permitted
exclusions in the Lessee's builders all risk insurance policy and shall be
limited to (a) governmental action including seizure or destruction of property
by order of governmental authority (for reasons other than to prevent the spread
of fire), (b) nuclear hazard, including nuclear reaction, radiation or
radioactive contamination (provided, damage from loss by fire shall be insured),
and (c) war and military action, including (i) war, including undeclared civil
war, (ii) warlike action by a military force and (iii) insurrection, rebellion,

                                 Appendix A-34
<PAGE>

revolution, usurped power, or action taken by governmental authority in
hindering or defending against any of these.

         "United States Bankruptcy Code" shall mean Title 11 of the United
States Code.

         "Unused Fee" shall mean, collectively, the Holder Unused Fee and the
Lender Unused Fee.

         "Unused Fee Payment Date" shall mean the last Business Day of each
December, March, June and September and the last Business Day of the Commitment
Period, or such earlier date as the Commitments shall terminate as provided in
the Credit Agreement or the Holder Commitment shall terminate as provided in the
Trust Agreement.

         "Upfront Fee Letter" shall mean that certain upfront fee letter dated
as of _________ addressed to Mr. Malcolm McVay, EVP & Treasurer of HEALTHSOUTH
Corporation from [__________________, _________] of First Union Securities, Inc.

         "U.S. Person" shall have the meaning specified in Section 11.2(e) of
the Participation Agreement.

         "U.S. Taxes" shall have the meaning specified in Section 11.2(e) of the
Participation Agreement.

         "Withholdings" shall have the meaning specified in Section 11.2(e) of
the Participation Agreement.

         "Wholly-Owned Entity" shall mean a Person all of the shares of capital
stock or other ownership interest of which are owned by the Parent and/or one of
its wholly-owned Subsidiaries or other wholly-owned entities.

         "Work" shall mean the furnishing of labor, materials, components,
furniture, furnishings, fixtures, appliances, machinery, equipment, tools,
power, water, fuel, lubricants, supplies, goods and/or services with respect to
any Property.

                                 Appendix A-35EXHIBIT (10)-58

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

                                 LEASE AGREEMENT

                          Dated as of December 27, 2001

                                     between

                       STATE STREET BANK AND TRUST COMPANY
                      OF CONNECTICUT, NATIONAL ASSOCIATION,
                          not individually, but solely
               as Owner Trustee for Digital Hospital Trust 2001-1,
                                    as Lessor

                                       and

                        HEALTHSOUTH MEDICAL CENTER, INC.,
                                    as Lessee

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

This Lease Agreement is subject to a security interest in favor of First Union
National Bank, as the agent for the Lenders and respecting the Security
Documents, as the agent for the Secured Parties (the "Agent") under a Security
Agreement dated as of December 27, 2001, between State Street Bank and Trust
Company of Connecticut, National Association, not individually, but solely as
Owner Trustee for Digital Hospital Trust 2001-1 and the Agent, as amended,
modified, extended, supplemented, restated and/or replaced from time to time in
accordance with the applicable provisions thereof. This Lease Agreement has been
executed in several counterparts. To the extent, if any, that this Lease
Agreement constitutes chattel paper (as such term is defined in the Uniform
Commercial Code as in effect in any applicable jurisdiction), no security
interest in this Lease Agreement may be created through the transfer or
possession of any counterpart other than the original counterpart containing the
receipt therefor executed by the Agent on the signature page hereof.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

<S>               <C>                                                                                            <C>
ARTICLE I.........................................................................................................1
         1.1      Definitions.....................................................................................1
         1.2      Interpretation..................................................................................2
ARTICLE II........................................................................................................2
         2.1      Property........................................................................................2
         2.2      Lease Term......................................................................................2
         2.3      Title...........................................................................................3
         2.4      Lease Supplements...............................................................................3
ARTICLE III.......................................................................................................3
         3.1      Rent............................................................................................3
         3.2      Payment of Basic Rent...........................................................................4
         3.3      Supplemental Rent...............................................................................4
         3.4      Performance on a Non-Business Day...............................................................4
         3.5      Rent Payment Provisions.........................................................................4
         3.6      Payment of Cost Overruns........................................................................5
ARTICLE IV........................................................................................................5
         4.1      Taxes; Utility Charges..........................................................................5
ARTICLE V.........................................................................................................5
         5.1      Quiet Enjoyment.................................................................................5
ARTICLE VI........................................................................................................6
         6.1      Net Lease.......................................................................................6
         6.2      No Termination or Abatement.....................................................................6
ARTICLE VII.......................................................................................................7
         7.1      Ownership of the Properties.....................................................................7
ARTICLE VIII......................................................................................................8
         8.1      Condition of the Properties.....................................................................8
         8.2      Possession and Use of the Properties............................................................9
         8.3      Integrated Properties..........................................................................10
ARTICLE IX.......................................................................................................10
         9.1      Compliance With Legal Requirements, Insurance Requirements and Manufacturer's Specifications
                  and Standards..................................................................................10
ARTICLE X........................................................................................................11
         10.1     Maintenance and Repair; Return.................................................................11
         10.2     Environmental Inspection.......................................................................12
ARTICLE XI.......................................................................................................13
         11.1     Modifications..................................................................................13
ARTICLE XII......................................................................................................14
         12.1     Warranty of Title..............................................................................14
ARTICLE XIII.....................................................................................................15
         13.1     Permitted Contests Other Than in Respect of Indemnities........................................15
         13.2     Impositions, Utility Charges, Other Matters; Compliance with Legal Requirements................16
ARTICLE XIV......................................................................................................16
         14.1     Public Liability and Workers' Compensation Insurance...........................................16
</TABLE>

                                       i
<PAGE>
<TABLE>
<CAPTION>

<S>               <C>                                                                                            <C>
         14.2     Permanent Hazard and Other Insurance...........................................................16
         14.3     Coverage.......................................................................................17
ARTICLE XV.......................................................................................................18
         15.1     Casualty and Condemnation......................................................................18
         15.2     Environmental Matters..........................................................................20
         15.3     Notice of Environmental Matters................................................................21
ARTICLE XVI......................................................................................................22
         16.1     Termination Upon Certain Events................................................................22
         16.2     Procedures.....................................................................................22
ARTICLE XVII.....................................................................................................22
         17.1     Lease Events of Default........................................................................22
         17.2     Surrender of Possession........................................................................26
         17.3     Reletting......................................................................................27
         17.4     Damages........................................................................................27
         17.5     Power of Sale..................................................................................28
         17.6     Final Liquidated Damages.......................................................................28
         17.7     Environmental Costs............................................................................28
         17.8     Waiver of Certain Rights.......................................................................29
         17.9     Assignment of Rights Under Contracts...........................................................29
         17.10    Remedies Cumulative............................................................................29
         17.11    Limitation Regarding Certain Lease Events of Default...........................................29
ARTICLE XVIII....................................................................................................30
         18.1     Lessor's Right to Cure Lessee's Lease Defaults.................................................30
ARTICLE XIX......................................................................................................30
         19.1     Provisions Relating to Lessee's Exercise of its Purchase Option................................30
         19.2     No Purchase or Termination With Respect to Less than All of a Property.........................30
ARTICLE XX.......................................................................................................31
         20.1     Purchase Option or Sale Option-General Provisions..............................................31
         20.2     Lessee Purchase Option.........................................................................31
         20.3     Third Party Sale Option........................................................................32
ARTICLE XXI......................................................................................................32
         21.1     [Intentionally Omitted]........................................................................32
ARTICLE XXII.....................................................................................................33
         22.1     Sale Procedure.................................................................................33
         22.2     Application of Proceeds of Sale................................................................35
         22.3     Indemnity for Excessive Wear...................................................................35
         22.4     Appraisal Procedure............................................................................35
         22.5     Certain Obligations Continue...................................................................36
         22.6     Extended Remarketing Period....................................................................36
ARTICLE XXIII....................................................................................................37
         23.1     Holding Over...................................................................................37
ARTICLE XXIV.....................................................................................................37
         24.1     Risk of Loss...................................................................................37
ARTICLE XXV......................................................................................................38
         25.1     Assignment.....................................................................................38
         25.2     Subleases......................................................................................38
</TABLE>

                                       ii
<PAGE>
<TABLE>
<CAPTION>

<S>               <C>                                                                                             <C>
ARTICLE XXVI.....................................................................................................39
         26.1     No Waiver......................................................................................39
ARTICLE XXVII....................................................................................................39
         27.1     Acceptance of Surrender........................................................................39
         27.2     No Merger of Title.............................................................................39
ARTICLE XXVIII...................................................................................................39
         28.1     Incorporation of Covenants.....................................................................39
ARTICLE XXIX.....................................................................................................40
         29.1     Notices........................................................................................40
ARTICLE XXX......................................................................................................40
         30.1     Miscellaneous..................................................................................40
         30.2     Amendments and Modifications...................................................................41
         30.3     Successors and Assigns.........................................................................41
         30.4     Headings and Table of Contents.................................................................41
         30.5     Counterparts...................................................................................41
         30.6     GOVERNING LAW..................................................................................41
         30.7     Calculation of Rent............................................................................41
         30.8     Memoranda of Lease and Lease Supplements.......................................................41
         30.9     Allocations between the Lenders and the Holders................................................42
         30.10    Limitations on Recourse........................................................................42
         30.11    WAIVERS OF JURY TRIAL..........................................................................42
         30.12    Exercise of Lessor Rights......................................................................42
         30.13    SUBMISSION TO JURISDICTION; VENUE; ARBITRATION.................................................43
         30.14    USURY SAVINGS PROVISION........................................................................43
         30.15    Lessor Certification...........................................................................44
</TABLE>

                                    EXHIBITS

EXHIBIT A - Lease Supplement No. ____

EXHIBIT B - Memorandum of Lease and Lease Supplement No. ____

                                      iii
<PAGE>

                                 LEASE AGREEMENT
                                 ---------------

         THIS LEASE AGREEMENT dated as of December 27, 2001 (as amended,
modified, extended, supplemented, restated and/or replaced from time to time,
this "Lease") is between State Street Bank and Trust Company of Connecticut,
National Association, a national banking association, having its principal
office at 225 Asylum Street, Goodwin Square, Hartford, Connecticut 06103, not
individually, but solely as Owner Trustee for Digital Hospital Trust 2001-1, as
lessor (the "Lessor"), and HEALTHSOUTH MEDICAL CENTER, INC., an Alabama
corporation, having its principal place of business at One HealthSouth Parkway,
Birmingham, Alabama 35243, as lessee (the "Lessee").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         A. WHEREAS, subject to the terms and conditions of the Participation
Agreement and the Agency Agreement, Lessor will (i) purchase or ground lease
various parcels of real property, some of which will (or may) have existing
Improvements thereon, from one (1) or more third parties designated by Lessee
and (ii) fund the acquisition, installation, testing, use, development,
construction, operation, maintenance, repair, refurbishment and restoration of
the Properties by the Construction Agent; and

         B. WHEREAS, the Term shall commence with respect to each Property upon
the Property Closing Date with respect thereto; provided, Basic Rent with
respect thereto shall not be payable until the applicable Rent Commencement
Date; and

         C. WHEREAS, Lessor desires to lease to Lessee, and Lessee desires to
lease from Lessor, each Property;

         NOW, THEREFORE, in consideration of the foregoing, and of other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

         1.1      DEFINITIONS.
                  -----------

                  For purposes of this Lease, capitalized terms used in this
Lease and not otherwise defined herein shall have the meanings assigned to them
in Appendix A to that certain Participation Agreement dated as of December 27,
2001 (as amended, modified, extended, supplemented, restated and/or replaced
from time to time in accordance with the applicable provisions thereof, the
"Participation Agreement") among Lessee, HEALTHSOUTH Corporation, as the
Guarantor, Lessor, the various banks and other lending institutions which are
parties thereto from time to time, as the Holders, the various banks and other
lending institutions which are parties thereto from time to time, as the
Lenders, and First Union National Bank, as agent for the Lenders and respecting
the Security Documents, as the agent for the Secured Parties. Unless otherwise
indicated, references in this Lease to articles, sections, paragraphs, clauses,
appendices, schedules and exhibits are to the same contained in this Lease.

<PAGE>

         1.2      INTERPRETATION.
                  --------------

                  The rules of usage set forth in Appendix A to the
Participation Agreement shall apply to this Lease.

                                   ARTICLE II

         2.1      PROPERTY.
                  --------

                  Subject to the terms and conditions hereinafter set forth and
contained in the respective Lease Supplement relating to each Property, Lessor
hereby leases to Lessee and Lessee hereby leases from Lessor, each Property.

         2.2      LEASE TERM.
                  ----------

                  The term of this Lease with respect to each Property (the
"Term") shall begin upon the Property Closing Date for such Property (in each
case the "Commencement Date") and shall end on the date that is seven (7) years
and six (6) months after the Initial Closing Date, unless the Term is earlier
terminated or is extended pursuant to the next paragraph. Notwithstanding the
foregoing, Lessee shall not be obligated to pay Basic Rent until the Rent
Commencement Date with respect to such Property.

                  Lessee may, not less than two hundred forty (240) days and no
more than three hundred sixty (360) days prior to the date that is seven (7)
years and six (6) months or twelve (12) years and six (6) months after the
Initial Closing Date, as applicable, by irrevocable notice to Lessor, the
Lenders, the Holders and the Agent make written request to extend the Expiration
Date for all, but not less than all, the Properties for an additional period of
five years (a "Renewal Term"). There shall be no more than two consecutive
Renewal Terms. Lessor, each Lender, each Holder and the Agent shall each make a
determination, in the absolute and sole discretion of each such party, not later
than thirty (30) days after receipt of such notice as to whether or not such
party will agree to extend the Expiration Date as requested; provided, however,
that failure by any such party to make a timely response to Lessee's request for
extension of the Expiration Date shall be deemed to constitute a refusal by such
party to the extension of the Expiration Date. In response to a request for an
extension of the Expiration Date, if (a) Lessor, each Lender, each Holder and
the Agent shall agree to the requested extension, then the Term shall be
extended and shall expire on the date five (5) years after the then current
expiration date or (b) Lessor, any Lender, any Holder or the Agent shall refuse
(or be deemed to have refused) to agree to the requested extension, then the
Term shall not be extended and shall expire on the then current Expiration Date.
In addition to the foregoing with respect to a Renewal Term, the Financing
Parties may require certain amendments to the Operative Agreements, including
without limitation changing the interest rate, Holder Yield, any fees and the
Maximum Residual Guarantee Amount, or certain conditions to be met prior to the
effectiveness of the Renewal

                                       2
<PAGE>

Term, including without limitation updated appraisals. In the event a Lender or
Holder does not agree to permit the Renewal Term, then the Lessee may replace
such Lender or Holder on terms mutually agreeable to the Lessee and such Lender
or Holder and in accordance with the terms and conditions of the Operative
Agreements.

         2.3      TITLE.
                  -----

                  Each Property is leased to Lessee without any representation
or warranty, express or implied, by Lessor and subject to the rights of parties
in possession (if any), the existing state of title (including without
limitation the Permitted Liens) and all applicable Legal Requirements. Lessee
shall in no event have any recourse against Lessor for any defect in Lessor's
title to any Property or any interest of Lessee therein other than for Lessor
Liens.

         2.4      LEASE SUPPLEMENTS.
                  -----------------

         On or prior to each Commencement Date, Lessee and Lessor shall each
execute and deliver a Lease Supplement for the Property to be leased effective
as of such Commencement Date in substantially the form of Exhibit A hereto.

                                   ARTICLE III

         3.1      RENT.
                  ----

                  (a) Lessee shall pay Basic Rent in arrears on each Payment
         Date, and on any date on which this Lease shall terminate with respect
         to any or all Properties during the Term; provided, however, with
         respect to each individual Property Lessee shall have no obligation to
         pay Basic Rent with respect to such Property until the Rent
         Commencement Date with respect to such Property (notwithstanding that
         Basic Rent for such Property shall accrue from and including the
         Scheduled Interest Payment Date immediately preceding such Rent
         Commencement Date).

                  (b) Basic Rent shall be due and payable in lawful money of the
         United States and shall be paid by wire transfer of immediately
         available funds on the due date therefor (or within the applicable
         grace period) to such account or accounts at such bank or banks as
         Lessor shall from time to time direct.

                  (c) Lessee's inability or failure to take possession of all or
         any portion of any Property when delivered by Lessor, whether or not
         attributable to any act or omission of Lessor, the Construction Agent,
         Lessee or any other Person or for any other reason whatsoever, shall
         not delay or otherwise affect Lessee's obligation to pay Rent for such
         Property in accordance with the terms of this Lease.

                  (d) Lessee shall make all payments of Rent prior to 12:00
         Noon, Charlotte, North Carolina time, on the applicable date for
         payment of such amount.

                                       3
<PAGE>

         3.2      PAYMENT OF BASIC RENT.
                  ---------------------

                  Basic Rent shall be paid absolutely net to Lessor or its
designee, so that this Lease shall yield to Lessor the full amount thereof,
without setoff, deduction or reduction.

         3.3      SUPPLEMENTAL RENT.
                  -----------------

                  Lessee shall pay or cause to be paid to the Agent (on behalf
of the Person entitled thereto) any and all Supplemental Rent when and as the
same shall become due and payable, and if Lessee fails to pay any Supplemental
Rent within five (5) Business Days after demand is made upon Lessee for payment,
Lessor shall have all rights, powers and remedies provided for herein or by law
or equity or otherwise in the case of nonpayment of Basic Rent. All such
payments of Supplemental Rent shall be in the full amount thereof, without
setoff, deduction or reduction. Lessee shall pay or cause to be paid to the
appropriate Person, as Supplemental Rent due and owing to such Person, among
other things, on demand, (a) any and all payment obligations (except for amounts
payable as Basic Rent) owing from time to time under the Operative Agreements by
any Person to the Agent, any Lender, any Holder or any other Person, (b)
interest at the applicable Overdue Rate on any installment of Basic Rent not
paid when due (subject to the applicable grace period) for the period for which
the same shall be overdue and on any payment of Supplemental Rent not paid when
due or demanded by the appropriate Person (subject to any applicable grace
period) for the period from the due date or the date of any such demand, as the
case may be, until the same shall be paid and (c) amounts referenced as
Supplemental Rent obligations pursuant to Section 8.3 of the Participation
Agreement. It shall be an additional Supplemental Rent obligation of Lessee to
pay to the appropriate Person all rent and other amounts when such become due
and owing from time to time under each Ground Lease and without the necessity of
any notice from Lessor with regard thereto. The expiration or other termination
of Lessee's obligations to pay Basic Rent hereunder shall not limit or modify
the obligations of Lessee with respect to Supplemental Rent. Unless expressly
provided otherwise in this Lease, in the event of any failure on the part of
Lessee to pay and discharge any Supplemental Rent as and when due, Lessee shall
also promptly pay and discharge any fine, penalty, interest or cost which may be
assessed or added for nonpayment or late payment of such Supplemental Rent, all
of which shall also constitute Supplemental Rent.

         3.4      PERFORMANCE ON A NON-BUSINESS DAY.
                  ---------------------------------

                  If any Basic Rent is required hereunder on a day that is not a
Business Day, then such Basic Rent shall be due on the corresponding Scheduled
Interest Payment Date or, to the extent such Basic Rent is not due on a
Scheduled Interest Payment Date, then on the next succeeding Business Day. If
any Supplemental Rent is required hereunder on a day that is not a Business Day,
then such Supplemental Rent shall be due on the next succeeding Business Day.

         3.5      RENT PAYMENT PROVISIONS.
                  -----------------------

                  Lessee shall make payment of all Basic Rent and Supplemental
Rent when due (subject to the applicable grace periods) regardless of whether
any of the Operative Agreements pursuant to which same is calculated and is
owing shall have been rejected, avoided or

                                       4
<PAGE>

disavowed in any bankruptcy or insolvency proceeding involving any of the
parties to any of the Operative Agreements. Such provisions of such Operative
Agreements and their related definitions are incorporated herein by reference
and shall survive any termination, amendment or rejection of any such Operative
Agreements.

         3.6      PAYMENT OF COST OVERRUNS.
                  ------------------------

                  Lessee shall make payments of prepaid rent to the Lessor,
during the Construction Period, of cost overruns as directed by the Lessor in
accordance with Section 3.3. of the Agency Agreement.

                                   ARTICLE IV

         4.1      TAXES; UTILITY CHARGES.
                  ----------------------

                  Lessee shall pay or cause to be paid all Impositions, other
than Impositions with respect to Lessor Liens, with respect to the Properties
and/or the use, occupancy, operation, repair, access, maintenance or operation
thereof and all charges for electricity, power, gas, oil, water, telephone,
sanitary sewer service and all other rents, utilities and operating expenses of
any kind or type used in or on any Property and related real property during the
Term. Upon Lessor's reasonable request, Lessee shall provide from time to time
Lessor with evidence of all such payments referenced in the foregoing sentence.
Lessee shall be entitled to receive any credit or refund with respect to any
Imposition or utility charge paid by Lessee. Unless an Event of Default shall
have occurred and be continuing, the amount of any credit or refund received by
Lessor on account of any Imposition or utility charge paid by Lessee, net of the
costs and expenses incurred by Lessor in obtaining such credit or refund, shall
be promptly paid over to Lessee. All charges for Impositions or utilities
imposed with respect to any Property for a period during which this Lease
expires or terminates shall be adjusted and prorated on a daily basis between
Lessor and Lessee, and each party shall pay or reimburse the other for such
party's pro rata share thereof.

                                    ARTICLE V

         5.1      QUIET ENJOYMENT.
                  ---------------

                  Subject to the rights of Lessor contained in Sections 17.2,
17.3 and 20.3 and the other terms of this Lease and the other Operative
Agreements and so long as no Event of Default shall have occurred and be
continuing, Lessee shall peaceably and quietly have, hold and enjoy each
Property for the applicable Term, free of any claim or other action by Lessor or
anyone rightfully claiming by, through or under Lessor (other than Lessee) with
respect to any matters arising from and after the applicable Commencement Date.

                                       5
<PAGE>

                                   ARTICLE VI

         6.1      NET LEASE.
                  ---------

                  This Lease shall constitute a net lease, and the obligations
of Lessee hereunder are absolute and unconditional. Lessee shall pay or cause to
be paid all operating expenses arising out of the use, operation and/or
occupancy of each Property. Any present or future law to the contrary
notwithstanding, this Lease shall not terminate, nor shall Lessee be entitled to
any abatement, suspension, deferment, reduction, setoff, counterclaim, or
defense with respect to the Rent, nor shall the obligations of Lessee hereunder
be affected (except as expressly herein permitted and by performance of the
obligations in connection therewith) for any reason whatsoever, including
without limitation by reason of: (a) any damage to or destruction of any
Property or any part thereof; (b) any taking of any Property or any part thereof
or interest therein by Condemnation or otherwise; (c) any prohibition,
limitation, restriction or prevention of Lessee's use, occupancy or enjoyment of
any Property or any part thereof, or any interference with such use, occupancy
or enjoyment by any Person or for any other reason; (d) any title defect, Lien
or any matter affecting title to any Property; (e) any eviction by paramount
title or otherwise; (f) any default by Lessor hereunder; (g) any action for
bankruptcy, insolvency, reorganization, liquidation, dissolution or other
proceeding relating to or affecting the Agent, any Lender, Lessor, Lessee, any
Holder or any Governmental Authority; (h) the impossibility or illegality of
performance by Lessor, Lessee or both; (i) any action of any Governmental
Authority or any other Person; (j) Lessee's acquisition of ownership of all or
part of any Property; (k) breach of any warranty or representation with respect
to any Property or any Operative Agreement; (l) any defect in the condition,
quality or fitness for use of any Property or any part thereof; or (m) any other
cause or circumstance whether similar or dissimilar to the foregoing and whether
or not Lessee shall have notice or knowledge of any of the foregoing. The
parties intend that the obligations of Lessee hereunder shall be covenants,
agreements and obligations that are separate and independent from any
obligations of Lessor hereunder and shall continue unaffected unless such
covenants, agreements and obligations shall have been modified or terminated in
accordance with an express provision of this Lease. Lessor and Lessee
acknowledge and agree that the provisions of this Section 6.1 have been
specifically reviewed and subject to negotiation.

         6.2      NO TERMINATION OR ABATEMENT.
                  ---------------------------

                  Lessee shall remain obligated under this Lease in accordance
with its terms and shall not take any action to terminate, rescind or avoid this
Lease, notwithstanding any action for bankruptcy, insolvency, reorganization,
liquidation, dissolution, or other proceeding affecting any Person or any
Governmental Authority, or any action with respect to this Lease or any
Operative Agreement which may be taken by any trustee, receiver or liquidator of
any Person or any Governmental Authority or by any court with respect to any
Person, or any Governmental Authority. Lessee hereby waives all right (a) to
terminate or surrender this Lease (except as permitted under the terms of the
Operative Agreements) or (b) to avail itself of any abatement, suspension,
deferment, reduction, setoff, counterclaim or defense with respect to any Rent.
Lessee shall remain obligated under this Lease in accordance with its terms and
Lessee hereby waives any and all rights now or hereafter conferred by statute or
otherwise to modify or to avoid strict compliance with its obligations under
this Lease. Notwithstanding any such statute or otherwise, Lessee shall be bound
by all of the terms and conditions contained in this Lease.

                                       6
<PAGE>

                                   ARTICLE VII

         7.1      OWNERSHIP OF THE PROPERTIES.
                  ---------------------------

                  (a) Lessor and Lessee intend that (i) for financial accounting
         purposes with respect to Lessee (A) this Lease will be treated as an
         "operating lease" pursuant to Statement of Financial Accounting
         Standards No. 13, as amended, (B) Lessor will be treated as the owner
         and lessor of each Property and (C) Lessee will be treated as the
         lessee of each Property, but (ii) for federal and all state and local
         income tax purposes, bankruptcy purposes, regulatory purposes,
         commercial law and real estate purposes and all other purposes (A) this
         Lease will be treated as a financing arrangement and (B) Lessee will be
         treated as the owner of the Properties and will be entitled to all tax
         benefits ordinarily available to owners of property similar to the
         Properties for such tax purposes. Notwithstanding the foregoing,
         neither party hereto has made, or shall be deemed to have made, any
         representation or warranty as to the availability of any of the
         foregoing treatments under applicable accounting rules, tax,
         bankruptcy, regulatory, commercial or real estate law or under any
         other set of rules. Lessee shall claim the cost recovery deductions
         associated with each Property, and Lessor shall not, to the extent not
         prohibited by Law, take on its tax return a position inconsistent with
         Lessee's claim of such deductions.

                  (b) For all purposes other than as set forth in Section
         7.1(a)(i), Lessor and Lessee intend this Lease to constitute a finance
         lease and not a true lease. In order to secure the obligations of
         Lessee now existing or hereafter arising under any and all Operative
         Agreements, Lessee hereby conveys, grants, assigns, transfers,
         hypothecates, mortgages and sets over to Lessor, for the benefit of the
         Secured Parties, a first priority security interest (but subject to the
         security interest in the assets granted by Lessee in favor of the Agent
         in accordance with the Security Agreement) in and lien on all right,
         title and interest of Lessee (now owned or hereafter acquired) in and
         to all Properties, to the extent such is personal property and
         irrevocably grants and conveys a lien, deed of trust and mortgage on
         all right, title and interest of Lessee (now owned or hereafter
         acquired) in and to all Properties to the extent such is real property.
         Lessor and Lessee further intend and agree that, for the purpose of
         securing the obligations of Lessee and/or the Construction Agent now
         existing or hereafter arising under the Operative Agreements, (i) this
         Lease shall be a security agreement and financing statement within the
         meaning of Article 9 of the Uniform Commercial Code respecting each of
         the Properties and all proceeds (including without limitation insurance
         proceeds thereof) to the extent such is personal property and an
         irrevocable grant and conveyance of a lien, deed of trust and mortgage
         on each of the Properties and all proceeds (including without
         limitation insurance proceeds thereof) to the extent such is real
         property; (ii) the acquisition of title by Lessor (or to the extent
         applicable, a leasehold interest pursuant to a Ground Lease) in each
         Property referenced in Article II constitutes a grant by Lessee to

                                       7
<PAGE>

         Lessor of a security interest, lien, deed of trust and mortgage in all
         of Lessee's right, title and interest in and to each Property and all
         proceeds (including without limitation insurance proceeds thereof) of
         the conversion, voluntary or involuntary, of the foregoing into cash,
         investments, securities or other property, whether in the form of cash,
         investments, securities or other property, and an assignment of all
         rents, profits and income produced by each Property; and (iii)
         notifications to Persons holding such property, and acknowledgments,
         receipts or confirmations from financial intermediaries, bankers or
         agents (as applicable) of Lessee shall be deemed to have been given for
         the purpose of perfecting such lien, security interest, mortgage lien
         and deed of trust under applicable law. Lessee shall promptly take such
         actions as necessary (including without limitation the filing of
         Uniform Commercial Code Financing Statements, Uniform Commercial Code
         Fixture Filings and memoranda (or short forms) of this Lease and the
         various Lease Supplements) to ensure that the lien, security interest,
         mortgage lien and deed of trust in each Property and the other items
         referenced above will be deemed to be a perfected lien, security
         interest, mortgage lien and deed of trust of first priority under
         applicable law and will be maintained as such throughout the Term.

                                  ARTICLE VIII

         8.1      CONDITION OF THE PROPERTIES.
                  ---------------------------

                  LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING EACH
PROPERTY "AS-IS WHERE-IS" WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS
OR IMPLIED) BY LESSOR (EXCEPT THAT LESSOR SHALL KEEP EACH PROPERTY FREE AND
CLEAR OF LESSOR LIENS) AND IN EACH CASE SUBJECT TO (A) THE EXISTING STATE OF
TITLE, (B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF (IF ANY), (C) ANY
STATE OF FACTS REGARDING ITS PHYSICAL CONDITION OR WHICH AN ACCURATE SURVEY
MIGHT SHOW, (D) ALL APPLICABLE LEGAL REQUIREMENTS AND (E) VIOLATIONS OF LEGAL
REQUIREMENTS WHICH MAY EXIST ON THE DATE HEREOF AND/OR THE DATE OF THE
APPLICABLE LEASE SUPPLEMENT. NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY
HOLDER HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION, WARRANTY OR
COVENANT (EXPRESS OR IMPLIED) (EXCEPT THAT LESSOR SHALL KEEP EACH PROPERTY FREE
AND CLEAR OF LESSOR LIENS) OR SHALL BE DEEMED TO HAVE ANY LIABILITY WHATSOEVER
AS TO THE TITLE, VALUE, HABITABILITY, USE, CONDITION, DESIGN, OPERATION,
MERCHANTABILITY OR FITNESS FOR USE OF ANY PROPERTY (OR ANY PART THEREOF), OR ANY
OTHER REPRESENTATION, WARRANTY OR COVENANT WHATSOEVER, EXPRESS OR IMPLIED, WITH
RESPECT TO ANY PROPERTY (OR ANY PART THEREOF), AND NEITHER LESSOR NOR THE AGENT
NOR ANY LENDER NOR ANY HOLDER SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT
DEFECT THEREON OR THE FAILURE OF ANY PROPERTY, OR ANY PART THEREOF, TO COMPLY
WITH ANY LEGAL REQUIREMENT. LESSEE HAS OR PRIOR TO THE COMMENCEMENT DATE WILL
HAVE BEEN AFFORDED FULL OPPORTUNITY TO INSPECT EACH PROPERTY AND THE

                                       8
<PAGE>

IMPROVEMENTS THEREON (IF ANY), IS OR WILL BE (INSOFAR AS LESSOR, THE AGENT, EACH
LENDER AND EACH HOLDER ARE CONCERNED) SATISFIED WITH THE RESULTS OF ITS
INSPECTIONS AND IS ENTERING INTO THIS LEASE SOLELY ON THE BASIS OF THE RESULTS
OF ITS OWN INSPECTIONS, AND ALL RISKS INCIDENT TO THE MATTERS DESCRIBED IN THE
PRECEDING SENTENCE, AS BETWEEN LESSOR, THE AGENT, THE LENDERS AND THE HOLDERS,
ON THE ONE (1) HAND, AND LESSEE, ON THE OTHER HAND, ARE TO BE BORNE BY LESSEE.

         8.2      POSSESSION AND USE OF THE PROPERTIES.
                  ------------------------------------

                  (a) Subsequent to the Completion Date, at all times during the
         Term (i) with respect to each Property, such Property shall be a
         Permitted Facility and shall be used by Lessee in the ordinary course
         of its business and (ii) with respect to the Property referenced in
         Lease Supplement No. 1, such Property shall also be operated as a
         hospital. Lessee shall pay, or cause to be paid, all charges and costs
         required in connection with the use of the Properties as contemplated
         by this Lease. Lessee shall not commit or permit any waste of the
         Properties or any part thereof.

                  (b) The address stated in Section 12.2 of the Participation
         Agreement is the principal place of business and chief executive office
         of Lessee (as such terms are used in the Uniform Commercial Code of any
         applicable jurisdiction), and Lessee will provide Lessor with prior
         written notice of any change of location of its principal place of
         business or chief executive office. The location of Lessee for purposes
         of the Uniform Commercial Code is Alabama, and Lessee will provide
         Lessor and the Agent with prior written notice of any change in its
         location for purposes of the Uniform Commercial Code. Regarding a
         particular Property, each Lease Supplement correctly identifies the
         initial location of the related Equipment (if any) and Improvements (if
         any) and contains an accurate legal description for the related parcel
         of Land or a copy of the Ground Lease (if any). The Equipment and
         Improvements respecting each particular Property will be located only
         at the location identified in the applicable Lease Supplement.

                  (c) Lessee will not attach or incorporate any item of
         Equipment to or in any other item of equipment or personal property or
         to or in any real property in a manner that could give rise to the
         assertion of any Lien on such item of Equipment by reason of such
         attachment or the assertion of a claim that such item of Equipment has
         become a fixture and is subject to a Lien in favor of a third party
         that is prior to the Liens thereon created by the Operative Agreements.

                  (d) On the Commencement Date for each Property, Lessor and
         Lessee shall execute a Lease Supplement in regard to such Property
         which shall contain an Equipment Schedule that has a general
         description of the Equipment which shall comprise the Property, an
         Improvement Schedule that has a general description of the Improvements
         which shall comprise the Property and a legal description of the Land
         to be leased hereunder (or in the case of any Property subject to a
         Ground Lease to be subleased hereunder) as of such date. Each Property
         subject to a Ground Lease shall be deemed to be ground subleased from
         Lessor to Lessee as of the Commencement Date, and such ground sublease

                                       9
<PAGE>

         shall be in effect until this Lease is terminated or expires, in each
         case in accordance with the terms and provisions hereof. Lessee shall
         satisfy and perform all obligations imposed on Lessor under each Ground
         Lease. Simultaneously with the execution and delivery of each Lease
         Supplement, such Equipment, Improvements, Land, ground subleasehold
         interest, all additional Equipment and all additional Improvements
         which are financed under the Operative Agreements after the
         Commencement Date and the remainder of such Property shall be deemed to
         have been accepted by Lessee for all purposes of this Lease and to be
         subject to this Lease.

                  (e) At all times during the Term with respect to each
         Property, Lessee will comply with all obligations under and (to the
         extent no Event of Default exists and provided that such exercise will
         not impair the value, utility or remaining useful life of such
         Property) shall be permitted to exercise all rights and remedies under,
         all operation and easement agreements and related or similar agreements
         applicable to such Property.

         8.3      INTEGRATED PROPERTIES.
                  ---------------------

                  On the Rent Commencement Date for each Property, Lessee shall,
at its sole cost and expense, cause such Property and the applicable property
subject to a Ground Lease to constitute (and for the duration of the Term shall
continue to constitute) all of the equipment, facilities, rights, other personal
property and other real property necessary or appropriate to operate, utilize,
maintain and control a Permitted Facility in a commercially reasonable manner.

                                   ARTICLE IX

         9.1      COMPLIANCE WITH LEGAL REQUIREMENTS, INSURANCE REQUIREMENTS AND
                  --------------------------------------------------------------
                  MANUFACTURER'S SPECIFICATIONS AND STANDARDS.
                  -------------------------------------------

                  Subject to the terms of Article XIII relating to permitted
contests, Lessee, at its sole cost and expense, shall (a) comply with all
applicable Legal Requirements (including without limitation all Environmental
Laws) and all Insurance Requirements relating to the Properties, (b) procure,
maintain and comply with all licenses, permits, orders, approvals, consents and
other authorizations required for the acquisition, installation, testing, use,
development, construction, operation, maintenance, repair, refurbishment and
restoration of the Properties, and (c) comply with all manufacturer's
specifications and standards, including without limitation the acquisition,
installation, testing, use, development, construction, operation, maintenance,
repair, refurbishment and restoration of the Properties, whether or not
compliance therewith shall require structural or extraordinary changes in any
Property or interfere with the use and enjoyment of any Property. Lessor agrees
to take such actions as may be reasonably requested by Lessee in connection with
the compliance by Lessee of its obligations under this Section 9.1.

                                       10
<PAGE>

                                    ARTICLE X

         10.1     MAINTENANCE AND REPAIR; RETURN.
                  ------------------------------

                  (a) Lessee, at its sole cost and expense, shall maintain each
         Property in good condition, repair and working order (ordinary wear and
         tear excepted) and in the repair and condition as when originally
         delivered to Lessor, subject to Modifications made or required to be
         made pursuant to the Operative Agreements, and make all necessary
         repairs thereto and replacements thereof, of every kind and nature
         whatsoever, whether interior or exterior, ordinary or extraordinary,
         structural or nonstructural or foreseen or unforeseen, in each case as
         required by Section 9.1 and on a basis consistent with the operation
         and maintenance of properties or equipment comparable in type and
         function to the applicable Property, such that such Property is capable
         of being immediately utilized by a third party and in compliance with
         standard industry practice subject, however, to the provisions of
         Article XV with respect to Casualty and Condemnation.

                  (b) Lessee shall not use or locate any component of any
         Property outside of the Approved State therefor. Lessee shall not move
         or relocate any component of any Property beyond the boundaries of the
         Land (comprising part of such Property) described in the applicable
         Lease Supplement, except for the temporary removal of Equipment and
         other personal property for repair or replacement.

                  (c) If any component of any Property becomes worn out, lost,
         destroyed, damaged beyond repair or otherwise permanently rendered
         unfit for use, Lessee, at its own expense, will within a reasonable
         time replace such component with a replacement component which is free
         and clear of all Liens (other than Permitted Liens) and has a value,
         utility and useful life at least equal to the component replaced
         (assuming the component replaced had been maintained and repaired in
         accordance with the requirements of this Lease); provided, however,
         that nothing in this Section shall prevent the Lessee from
         discontinuing the use, operation or maintenance of any Equipment or
         disposing of such if, in all such cases such Equipment is obsolete or
         no longer necessary for the operation of the Permitted Facility and
         such discontinuance or disposal does not, in the aggregate with all
         prior discontinuances and disposals, decrease the value of the Property
         by more than $500,000 or adversely affect the utility or useful life of
         the Property. All components which are added to any Property shall
         immediately become the property of (and title thereto shall vest in)
         Lessor and shall be deemed incorporated in such Property and subject to
         the terms of this Lease as if originally leased hereunder.

                  (d) Upon reasonable advance notice, Lessor and its agents
         shall have the right to inspect each Property and all maintenance
         records with respect thereto at any reasonable time during normal
         business hours but shall not, in the absence of an Event of Default,
         materially disrupt the business of Lessee.

                  (e) Lessee shall cause to be delivered to Lessor (at Lessee's
         sole expense) one (1) or more additional Appraisals (or reappraisals of
         Property) as Lessor may request if any one (1) of Lessor, the Agent,
         the Trust Company, any Lender or any Holder is required pursuant to any

                                       11
<PAGE>

         applicable Legal Requirement to obtain such Appraisals (or
         reappraisals) and upon the occurrence of any Event of Default.

                  (f) Lessor shall under no circumstances be required to build
         any improvements or install any equipment on any Property, make any
         repairs, replacements, alterations or renewals of any nature or
         description to any Property, make any expenditure whatsoever in
         connection with this Lease or maintain any Property in any way. Lessor
         shall not be required to maintain, repair or rebuild all or any part of
         any Property, and Lessee waives the right to (i) require Lessor to
         maintain, repair, or rebuild all or any part of any Property, or (ii)
         make repairs at the expense of Lessor pursuant to any Legal
         Requirement, Insurance Requirement, contract, agreement, covenant,
         condition or restriction at any time in effect.

                  (g) Lessee shall, upon the expiration or earlier termination
         of this Lease with respect to a Property, if Lessee shall not have
         exercised its Purchase Option with respect to such Property and
         purchased such Property, surrender such Property (i) to Lessor pursuant
         to the exercise of the applicable remedies upon the occurrence of a
         Lease Event of Default or (ii) pursuant to the second paragraph of
         Section 22.1(a) hereof, to Lessor or the third party purchaser, as the
         case may be, subject to Lessee's obligations under this Lease
         (including without limitation the obligations of Lessee at the time of
         such surrender under Sections 9.1, 10.1(a) through (f), 10.2, 11.1,
         12.1, 22.1 and 23.1).

                  (h) [Intentionally Omitted].

                  (i) [Intentionally Omitted].

                  (j) The provisions of this Section 10.1 are essential to this
         Lease, and upon application to any court of law or equity having
         jurisdiction in the premises, Lessor shall be entitled to a decree
         against Lessee requiring specific performance of the covenants of
         Lessee set forth in this Section 10.1.

         10.2     ENVIRONMENTAL INSPECTION.
                  ------------------------

                  If Lessee has not given notice of exercise of its Purchase
Option on the Expiration Date pursuant to Section 20.1 or for whatever reason
Lessee does not purchase a Property in accordance with the terms of this Lease,
then not more than one hundred eighty (180) days nor less than sixty (60) days
prior to the Expiration Date, Lessee at its expense shall cause to be delivered
to Lessor a Phase I environmental site assessment recently prepared (no more
than thirty (30) days prior to the date of delivery) by an independent
recognized professional reasonably acceptable to Lessor, and in form, scope and
content reasonably satisfactory to Lessor.

                                       12
<PAGE>

                                   ARTICLE XI

         11.1     MODIFICATIONS.
                  -------------

                  (a) Lessee at its sole cost and expense, at any time and from
         time to time without the consent of Lessor may make modifications,
         alterations, renovations, improvements and additions to any Property or
         any part thereof and substitutions and replacements therefor
         (collectively, "Modifications"), and Lessee shall make any and all
         Modifications required to be made pursuant to all Legal Requirements,
         Insurance Requirements and manufacturer's specifications and standards;
         provided, that: (i) no Modification shall materially impair the value,
         utility or useful life of any Property from that which existed
         immediately prior to such Modification; (ii) each Modification shall be
         done expeditiously and in a good and workmanlike manner; (iii) no
         Modification shall adversely affect the structural integrity of any
         Property; (iv) to the extent required by Section 14.2(a), Lessee shall
         maintain builders' risk insurance at all times when a Modification is
         in progress; (v) subject to the terms of Article XIII relating to
         permitted contests, Lessee shall pay all costs and expenses and
         discharge any Liens arising with respect to any Modification; (vi) each
         Modification shall comply with the requirements of this Lease
         (including without limitation Sections 8.2 and 10.1); and (vii) no
         Improvement shall be demolished or otherwise rendered unfit for use
         unless Lessee shall finance the proposed replacement Modification
         outside of this lease facility; provided, further, Lessee shall not
         make any Modification (unless required by any Legal Requirement) to the
         extent any such Modification, individually or in the aggregate, shall
         or could reasonably be expected to have a Material Adverse Effect.
         Except as expressly provided in this Section, all Modifications shall
         immediately and without further action upon their incorporation into
         the applicable Property (1) become property of Lessor, (2) be subject
         to this Lease and (3) be titled in the name of Lessor. Lessee shall not
         remove or attempt to remove any Modification from any Property. Each
         Ground Lease for a Property shall expressly provide for the provisions
         of the foregoing sentence. Lessee, at its own cost and expense, will
         pay for the repairs of any damage to any Property caused by the removal
         or attempted removal of any Modification.

                  Modifications made by Lessee that (A) are not required to be
         made pursuant to Legal Requirements, Insurance Requirements or
         manufacturer's specifications or standards, (B) are not financed or
         paid for wholly or partially by the Lessor or with proceeds of any
         Casualty or Condemnation, (C) are not required replacements pursuant to
         Article 15 of the Lease or any other provision of any Operative
         Agreement and (D) can be removed without adversely affecting the value,
         utility or useful life of the Property or the operation of the Property
         as a Permitted Facility, may be removed by Lessee prior to the
         Expiration Date, provided, if such Modifications are not removed by
         such date then title to such Modifications shall revert to Lessor.
         Lessee at its sole cost and expense shall repair in a good and
         workmanlike manner any and all damage done to any Property due to the
         removal, detachment, attempted removal or attempted detachment of any
         Modification from a Property and all such repairs shall be completed by
         the earlier of (Y) thirty (30) days after such removal, detachment,
         attempted removal or attempted detachment of the applicable
         Modification from the applicable Property and (Z) the Expiration Date.

                                       13
<PAGE>

         Lessee shall not remove or attempt to remove any Modification titled to
         Lessor from any Property.

                  Lessee may install any removable trade fixtures, machinery,
         equipment, inventory or other property (and all right, title and
         interest in and to such property shall belong to the Lessee or a third
         party other than any Financing Party) that (A) is not required to be
         made pursuant to Legal Requirements, Insurance Requirements or
         manufacturer's specifications or standards, (B) is not financed or paid
         for wholly or partially by the Lessor or with proceeds of any Casualty
         or Condemnation, (C) is not a required replacement pursuant to Article
         15 of the Lease or any other provision of any Operative Agreement and
         (D) can be removed without adversely affecting the value, utility or
         useful life of the Property or the operation of the Property as a
         Permitted Facility, may be removed by Lessee prior to the Expiration
         Date, provided, if such property is not removed by such date then title
         to such property shall automatically transfer to and vest in the
         Lessor. Lessee at its sole cost and expense shall repair in a good and
         workmanlike manner any and all damage done to any Property due to the
         removal, detachment, attempted removal or attempted detachment of any
         property from a Property and all such repairs shall be completed by the
         earlier of (Y) thirty (30) days after such removal, detachment,
         attempted removal or attempted detachment of the applicable
         Modification from the applicable Property and (Z) the Expiration Date.
         Lessee shall not remove or attempt to remove any Modification titled to
         Lessor from any Property.

                  (b) The construction process provided for in the Agency
         Agreement is acknowledged by Lessor to be consistent with and in
         compliance with the terms and provisions of this Article XI.

                                   ARTICLE XII

         12.1     WARRANTY OF TITLE.
                  -----------------

                  (a) Lessee hereby acknowledges and shall cause title in each
         Property (including without limitation all Equipment, all Improvements,
         all replacement components to each Property and all Modifications)
         immediately and without further action to vest in and become the
         property of Lessor and to be subject to the terms of this Lease
         (provided, respecting each Property subject to a Ground Lease, Lessor's
         interest therein is acknowledged to be a leasehold interest pursuant to
         such Ground Lease) from and after the date hereof or such date of
         incorporation into any Property. Lessee agrees that, subject to the
         terms of Article XIII relating to permitted contests, Lessee shall not
         directly or indirectly create or allow to remain, and shall promptly
         discharge at its sole cost and expense, any Lien, defect, attachment,
         levy, title retention agreement or claim upon any Property, any
         component thereof or any Modifications or any Lien, attachment, levy or
         claim with respect to the Rent or with respect to any amounts held by
         Lessor, the Agent, any Lender or any Holder pursuant to any Operative
         Agreement, other than Permitted Liens. Lessee shall promptly notify
         Lessor in the event it receives actual knowledge that a Lien other than
         a Permitted Lien has occurred with respect to a Property, the Rent or

                                       14
<PAGE>

         any other such amounts, and Lessee represents and warrants to, and
         covenants with, Lessor that the Liens in favor of Lessor and/or the
         Agent created by the Operative Agreements are (and until the Financing
         Parties under the Operative Agreements have been paid in full shall
         remain) first priority perfected Liens subject only to Permitted Liens
         and Lessor Liens. At all times subsequent to the Commencement Date
         respecting a Property, Lessee shall (i) cause a valid, perfected, first
         priority Lien on each applicable Property to be in place in favor of
         the Agent (for the benefit of the Secured Parties) and (ii) file, or
         cause to be filed, all necessary documents under the applicable real
         property law and Article 9 of the Uniform Commercial Code to perfect
         such title and Liens.

                  (b) Nothing contained in this Lease shall be construed as
         constituting the consent or request of Lessor, expressed or implied, to
         or for the performance by any contractor, mechanic, laborer,
         materialman, supplier or vendor of any labor or services or for the
         furnishing of any materials for any construction, alteration, addition,
         repair or demolition of or to any Property or any part thereof. NOTICE
         IS HEREBY GIVEN THAT LESSOR IS NOT AND SHALL NOT BE LIABLE FOR ANY
         LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE, OR
         TO ANYONE HOLDING A PROPERTY OR ANY PART THEREOF THROUGH OR UNDER
         LESSEE, AND THAT NO MECHANIC'S OR OTHER LIENS FOR ANY SUCH LABOR,
         SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LESSOR
         IN AND TO ANY PROPERTY.

                                  ARTICLE XIII

         13.1     Permitted Contests Other Than in Respect of Indemnities.
                  --------------------------------------------------------

                  Except to the extent otherwise provided for in Section 11 of
the Participation Agreement, Lessee, on its own or on Lessor's behalf but at
Lessee's sole cost and expense, may contest, by appropriate administrative or
judicial proceedings conducted in good faith and with due diligence, the amount,
validity or application, in whole or in part, of any Legal Requirement,
Imposition or utility charge payable pursuant to Section 4.1 or any Lien,
attachment, levy, encumbrance or encroachment, and Lessor agrees not to pay,
settle or otherwise compromise any such item, provided, that (a) the
commencement and continuation of such proceedings shall suspend the collection
of any such contested amount from, and suspend the enforcement thereof against,
the applicable Properties, Lessor, each Holder, the Agent and each Lender; (b)
there shall not be imposed a Lien (other than Permitted Liens) on any Property
and no part of any Property nor any Rent would be in any danger of being sold,
forfeited, lost or deferred; (c) at no time during the permitted contest shall
there be a risk of the imposition of criminal liability or material civil
liability on Lessor, any Holder, the Agent or any Lender for failure to comply
therewith; and (d) in the event that, at any time, there shall be a material
risk of extending the application of such item beyond the end of the Term, then
Lessee shall deliver to Lessor an Officer's Certificate certifying as to the
matters set forth in clauses (a), (b) and (c) of this Section 13.1. Lessor, at
Lessee's sole cost and expense, shall execute and deliver to Lessee such

                                       15
<PAGE>

authorizations and other documents as may reasonably be required in connection
with any such contest and, if reasonably requested by Lessee and required under
local procedural rules or regulations, shall join as a party therein at Lessee's
sole cost and expense; provided, however, Lessor shall not join as a party
therein in the event each Lender, each Holder and the Lessor agrees that the
Lessor shall forfeit the benefit of its indemnity under the Operative Agreements
with respect to such contest.

         13.2     IMPOSITIONS, UTILITY CHARGES, OTHER MATTERS; COMPLIANCE WITH
                  ------------------------------------------------------------
                  LEGAL REQUIREMENTS.
                  ------------------

                  Except with respect to Impositions, Legal Requirements,
utility charges and such other matters referenced in Section 13.1 which are the
subject of ongoing proceedings contesting the same in a manner consistent with
the requirements of Section 13.1, subject to the obligation of Lessor to pay
Impositions required to remove any Lessor Lien, Lessee shall cause (a) all
Impositions, utility charges and such other matters to be timely paid, settled
or compromised, as appropriate, with respect to each Property and (b) each
Property to comply with all applicable Legal Requirements.

                                   ARTICLE XIV

         14.1     PUBLIC LIABILITY AND WORKERS' COMPENSATION INSURANCE.
                  ----------------------------------------------------

                  During the Term for each Property, Lessee shall procure and
carry, at Lessee's sole cost and expense, commercial general liability and
umbrella liability insurance for claims for injuries or death sustained by
persons or damage to property while on such Property or respecting the Equipment
and such other public liability coverages as are then customarily carried by
similarly situated companies conducting business similar to that conducted by
Lessee. Such insurance shall be on terms and in amounts that are no less
favorable than insurance maintained by Lessee with respect to similar properties
and equipment that it owns and are then carried by similarly situated companies
conducting business similar to that conducted by Lessee, and in no event shall
have a minimum combined single limit per occurrence coverage (i) for commercial
general liability of less than $1,000,000 and (ii) for umbrella liability of
less than $25,000,000. The policies shall name Lessee as the insured and shall
be endorsed to name Lessor, the Holders, the Agent and the Lenders as additional
insureds. The policies shall also specifically provide that such policies shall
be considered primary insurance which shall apply to any loss or claim before
any contribution by any insurance which Lessor, any Holder, the Agent or any
Lender may have in force. In the operation of the Properties, Lessee shall
comply with applicable workers' compensation laws and protect Lessor, each
Holder, the Agent and each Lender against any liability under such laws.

         14.2     PERMANENT HAZARD AND OTHER INSURANCE.
                  ------------------------------------

                  (a) During the Term for each Property, Lessee shall keep such
         Property insured against all risk of physical loss or damage by fire
         and other risks and shall maintain all risk builders' risk insurance
         during construction of any Improvements or Modifications in each case
         in amounts no less than the Property Cost of such Property from time to

                                       16
<PAGE>

         time and on terms that (i) are no less favorable than insurance
         covering other similar properties owned by Lessee, (ii) subject to
         subsection (iii) below, are then carried by similarly situated
         companies conducting business similar to that conducted by Lessee and
         (iii) regarding builder's all risk insurance, shall cover all Casualty
         and all Force Majeure Events except Uninsurable Force Majeure Events.
         Such all risk builder's risk insurance shall not have a deductible in
         excess of $100,000 per occurrence (provided, from and after the earlier
         to occur of the delivery of the insurance certificate referenced in
         Section 17.1(a) and January 15, 2002, such deductible shall not be in
         excess of $25,000 per occurrence) with respect to any Construction
         Period Property and, with respect to each Construction Period Property
         as of the applicable Property Closing Date, such insurance shall be in
         effect for a term covering the period from such Property Closing Date
         through and including the Completion Date of such Property. The
         policies shall name Lessee as the insured and shall be endorsed to name
         Lessor and the Agent (on behalf of the Secured Parties) as an
         additional insured and loss payee; provided, so long as no Event of
         Default exists, any loss payable under the insurance policies required
         by this Section for losses up to $1,000,000 will be paid to Lessee.

                  (b) If, during the Term with respect to a Property the area in
         which such Property is located is designated a "flood-prone" area
         pursuant to the Flood Disaster Protection Act of 1973, or any
         amendments or supplements thereto or is in a zone designated A or V,
         then Lessee shall comply with the National Flood Insurance Program as
         set forth in the Flood Disaster Protection Act of 1973. In addition,
         Lessee will fully comply with the requirements of the National Flood
         Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, as
         each may be amended from time to time, and with any other Legal
         Requirement, concerning flood insurance to the extent that it applies
         to any such Property. During the Term, Lessee shall, in the operation
         and use of each Property, maintain workers' compensation insurance
         consistent with that carried by similarly situated companies conducting
         business similar to that conducted by Lessee and containing minimum
         liability limits of no less than $100,000. In the operation of each
         Property, Lessee shall comply with workers' compensation laws
         applicable to Lessee, and protect Lessor, each Holder, the Agent and
         each Lender against any liability under such laws.

         14.3     COVERAGE.
                  --------

                  (a) As of the date of this Lease and annually thereafter
         during the Term, Lessee shall furnish the Agent (on behalf of Lessor,
         and the other beneficiaries of such insurance coverage) and Lessor with
         certificates prepared by the insurers or insurance broker of Lessee
         showing the insurance required under Sections 14.1 and 14.2 to be in
         effect, naming (to the extent of their respective interests) Lessor, in
         its individual and trust capacity, the Holders, the Agent and the
         Lenders as additional insureds and loss payees and evidencing the other
         requirements of this Article XIV. All such certificates must be in form
         and substance satisfactory to Lessor and the Agent. All such insurance
         shall be at the cost and expense of Lessee and provided by nationally
         recognized, financially sound insurance companies having an A+ or
         better rating by A.M. Best's Key Rating Guide. Lessee shall cause such
         certificates to include a provision for thirty (30) days' advance

                                       17
<PAGE>

         written notice by the insurer to the Agent (on behalf of Lessor and the
         other beneficiaries of such insurance coverage) and Lessor in the event
         of cancellation or material alteration of such insurance. If an Event
         of Default has occurred and is continuing and the Agent (on behalf of
         Lessor and the other beneficiaries of such insurance coverage) so
         requests, Lessee shall deliver to the Agent (on behalf of Lessor and
         the other beneficiaries of such insurance coverage) and Lessor copies
         of all insurance policies required by Sections 14.1 and 14.2.

                  (b) Lessee agrees that the insurance policy or policies
         required by Sections 14.1, 14.2(a) and 14.2(b) shall include an
         appropriate clause pursuant to which any such policy shall provide that
         it will not be invalidated should Lessee or any Contractor, as the case
         may be, waive, at any time, any or all rights of recovery against any
         party for losses covered by such policy or due to any breach of
         warranty, fraud, action, inaction or misrepresentation by Lessee or any
         Person acting on behalf of Lessee. Lessee hereby waives any and all
         such rights against Lessor, the Holders, the Agent and the Lenders to
         the extent of payments made to any such Person under any such policy.

                  (c) Neither Lessor nor Lessee shall carry separate insurance
         concurrent in kind or form or contributing in the event of loss with
         any insurance required under this Article XIV, except that Lessor may
         carry separate liability insurance at Lessor's sole cost so long as (i)
         Lessee's insurance is designated as primary and in no event excess or
         contributory to any insurance Lessor may have in force which would
         apply to a loss covered under Lessee's policy and (ii) each such
         insurance policy will not cause Lessee's insurance required under this
         Article XIV to be subject to a coinsurance exception of any kind. This
         provision shall not limit the Agent, any Lender or any Holder from
         carrying separate insurance.

                  (d) Lessee shall pay or cause to be paid as they become due
         all premiums for the insurance required by Section 14.1 and Section
         14.2, shall renew or replace each policy prior to the expiration date
         thereof or otherwise maintain the coverage required by such Sections
         without any lapse in coverage.

                                   ARTICLE XV

         15.1     CASUALTY AND CONDEMNATION.
                  -------------------------

                  (a) Subject to the provisions of the Agency Agreement and this
         Article XV and Article XVI (in the event Lessee delivers, or is
         obligated to deliver or is deemed to have delivered, a Termination
         Notice), and prior to the occurrence and continuation of a Default or
         an Event of Default, Lessee shall be entitled to receive (and Lessor
         hereby irrevocably assigns to Lessee all of Lessor's right, title and
         interest in) any condemnation proceeds, award, compensation or
         insurance proceeds under Sections 14.2(a) or 14.2(b) hereof to which
         Lessee or Lessor may become entitled by reason of their respective
         interests in a Property (i) if all or a portion of such Property is
         damaged or destroyed in whole or in part by a Casualty or (ii) if the
         use, access, occupancy, easement rights or title to such Property or

                                       18
<PAGE>

         any part thereof is the subject of a Condemnation; provided, however,
         if a Default or an Event of Default shall have occurred and be
         continuing or if such award, compensation or insurance proceeds shall
         exceed $1,000,000, then such award, compensation or insurance proceeds
         shall be paid directly to Lessor or, if received by Lessee, shall be
         held in trust for Lessor, and shall be paid over by Lessee to Lessor
         and held in accordance with the terms of this paragraph (a). All
         amounts held by Lessor hereunder on account of any award, compensation
         or insurance proceeds either paid directly to Lessor or turned over to
         Lessor shall be held as security for the performance of Lessee's
         obligations hereunder and under the other Operative Agreements and when
         all such obligations of Lessee with respect to such matters (and all
         other obligations of Lessee which should have been satisfied pursuant
         to the Operative Agreements as of such date) have been satisfied, all
         amounts so held by Lessor shall be paid over to Lessee.

                  (b) To the extent no Lease Event of Default shall have
         occurred and be continuing, Lessee may appear in any proceeding or
         action to negotiate, prosecute, adjust or appeal any claim for any
         award, compensation or insurance payment on account of any such
         Casualty or Condemnation. Lessee shall pay all expenses regarding each
         such proceeding or action referenced in the previous sentence. At
         Lessee's reasonable request, and at Lessee's sole cost and expense,
         Lessor and the Agent shall participate in any such proceeding, action,
         negotiation, prosecution or adjustment. Lessor and Lessee agree that
         this Lease shall control the rights of Lessor and Lessee in and to any
         such award, compensation or insurance payment.

                  (c) If Lessee shall receive notice of a Casualty or a
         Condemnation of a Property or any interest therein where damage to the
         affected Property is estimated to equal or exceed twenty-five percent
         (25%) of the Property Cost of such Property, Lessee shall give notice
         thereof to Lessor promptly after Lessee's receipt of such notice. In
         the event such a Casualty or Condemnation occurs (regardless of whether
         Lessee gives notice thereof), then Lessee shall be deemed to have
         delivered a Termination Notice to Lessor and the provisions of Sections
         16.1 and 16.2 shall apply.

                  (d) In the event of a Casualty or a Condemnation (regardless
         of whether notice thereof must be given pursuant to paragraph (c)),
         this Lease shall terminate with respect to the applicable Property in
         accordance with Section 16.1 if Lessee, within thirty (30) days after
         such occurrence, delivers to Lessor a notice to such effect.

                  (e) If pursuant to this Section 15.1 this Lease shall continue
         in full force and effect following a Casualty or Condemnation with
         respect to the affected Property, Lessee shall, at its sole cost and
         expense (subject to reimbursement in accordance with Section 15.1(a))
         promptly and diligently repair any damage to the applicable Property
         caused by such Casualty or Condemnation in conformity with the
         requirements of Sections 10.1 and 11.1, using the as-built Plans and
         Specifications or manufacturer's specifications for the applicable
         Improvements, Equipment or other components of the applicable Property
         (as modified to give effect to any subsequent Modifications, any
         Condemnation affecting the applicable Property and all applicable Legal
         Requirements), so as to restore the applicable Property to the same or
         a greater remaining economic value, useful life, utility, condition,

                                       19
<PAGE>

         operation and function as existed immediately prior to such Casualty or
         Condemnation (assuming all maintenance and repair standards have been
         satisfied). In such event, title to the applicable Property shall
         remain with Lessor.

                  (f) In no event shall a Casualty or Condemnation affect
         Lessee's obligations to pay Rent pursuant to Article III.

                  (g) Notwithstanding anything to the contrary set forth in
         Section 15.1(a) or Section 15.1(e), if during the Term with respect to
         a Property to which Section 15.1(c) does not apply a Casualty occurs
         with respect to such Property or Lessee receives notice of a
         Condemnation with respect to such Property, and following such Casualty
         or Condemnation, the applicable Property cannot reasonably be restored,
         repaired or replaced on or before the day one hundred eighty (180) days
         prior to the Expiration Date or the date nine (9) months after the
         occurrence of such Casualty or Condemnation (if such Casualty or
         Condemnation occurs during the Term) to the same or a greater remaining
         economic value, useful life, utility, condition, operation and function
         as existed immediately prior to such Casualty or Condemnation (assuming
         all maintenance and repair standards have been satisfied) or on or
         before such day such Property is not in fact so restored, repaired or
         replaced, then Lessee shall be required to exercise its Purchase Option
         for such Property on the next Payment Date (notwithstanding the limits
         on such exercise contained in Section 20.2) and pay Lessor the
         Termination Value for such Property; provided, if any Default or Event
         of Default has occurred and is continuing, Lessee shall also promptly
         (and in any event within three (3) Business Days) pay Lessor any award,
         compensation or insurance proceeds received on account of any Casualty
         or Condemnation with respect to any Property; provided, further, that
         if no Default or Event of Default has occurred and is continuing, any
         Excess Proceeds shall be paid to Lessee. If a Default or an Event of
         Default has occurred and is continuing and any Loans, Holder Advances
         or other amounts are owing with respect thereto, then any Excess
         Proceeds (to the extent of any such Loans, Holder Advances or other
         amounts owing with respect thereto) shall be paid to Lessor, held as
         security for the performance of Lessee's obligations hereunder and
         under the other Operative Agreements and applied to such obligations
         upon the exercise of remedies in connection with the occurrence of an
         Event of Default, with the remainder of such Excess Proceeds in excess
         of such Loans, Holder Advances and other amounts owing with respect
         thereto being distributed to the Lessee.

                  (h) The provisions of Sections 15.1(a)-15.1(g) shall only
         apply to a Property after the Completion Date for such Property.

         15.2     ENVIRONMENTAL MATTERS.
                  ---------------------

                  Promptly upon Lessee's actual knowledge of the presence of
Hazardous Substances in any portion of any Property or Properties in
concentrations and conditions that constitute an Environmental Violation and
which, in the reasonable opinion of Lessee, the cost to undertake any legally
required response, clean up, remedial or other action will or might result in a
cost to Lessee of more than $100,000, Lessee shall notify Lessor in writing of
such condition. In the event of any Environmental Violation (regardless of

                                       20
<PAGE>

whether notice thereof must be given), Lessee shall, not later than thirty (30)
days after Lessee has actual knowledge of such Environmental Violation, either
deliver to Lessor a Termination Notice with respect to the applicable Property
or Properties pursuant to Section 16.1, if applicable, or, at Lessee's sole cost
and expense, promptly and diligently undertake and diligently complete any
response, clean up, remedial or other action (including without limitation the
pursuit by Lessee of appropriate action against any off-site or third party
source for contamination) necessary to remove, cleanup or remediate the
Environmental Violation in accordance with all Environmental Laws. Any such
undertaking shall be timely completed in accordance with prudent industry
standards. If Lessee does not deliver a Termination Notice with respect to such
Property pursuant to Section 16.1, Lessee shall, upon completion of remedial
action by Lessee, cause to be prepared by a reputable environmental consultant
acceptable to Lessor a report describing the Environmental Violation and the
actions taken by Lessee (or its agents) in response to such Environmental
Violation, and a statement by the consultant that the Environmental Violation
has been remedied in full compliance with applicable Environmental Law. Not less
than sixty (60) days and not more than one hundred eighty (180) days prior to
any time that Lessee elects to cease operations with respect to any Property or
to remarket any Property pursuant to Section 20.1 hereof or any other provision
of any Operative Agreement, Lessee at its expense shall cause to be delivered to
Lessor a Phase I environmental site assessment respecting such Property recently
prepared (no more than thirty (30) days prior to the date of delivery) by an
independent recognized professional acceptable to Lessor in its reasonable
discretion and in form, scope and content satisfactory to Lessor in its
reasonable discretion. Notwithstanding any other provision of any Operative
Agreement, if Lessee fails to comply with the foregoing obligation regarding the
Phase I environmental site assessment, Lessee shall be obligated to purchase
such Property for its Termination Value and shall not be permitted to exercise
(and Lessor shall have no obligation to honor any such exercise) any rights
under any Operative Agreement regarding a sale of such Property to a Person
other than Lessee or any Affiliate of Lessee.

         15.3     NOTICE OF ENVIRONMENTAL MATTERS.
                  -------------------------------

                  Promptly, but in any event within thirty (30) days from the
date Lessee has actual knowledge thereof, Lessee shall provide to Lessor written
notice of any pending or threatened claim, action or proceeding involving any
Environmental Law or any Release on or in connection with any Property or
Properties. All such notices shall describe in reasonable detail the nature of
the claim, action or proceeding and Lessee's proposed response thereto. In
addition, Lessee shall provide to Lessor, within thirty (30) days of receipt,
copies of all material written communications with any Governmental Authority
relating to any Environmental Law in connection with any Property. Lessee shall
also promptly provide such detailed reports of any such material environmental
claims as may reasonably be requested by Lessor.

                                       21
<PAGE>

                                   ARTICLE XVI

         16.1     TERMINATION UPON CERTAIN EVENTS.
                  -------------------------------

                  If Lessee has delivered, or is deemed to have delivered,
written notice of a termination of this Lease with respect to the applicable
Property to Lessor in the form described in Section 16.2(a) (a "Termination
Notice") pursuant to the provisions of this Lease, then following the applicable
Casualty, Condemnation or Environmental Violation, this Lease shall terminate
with respect to the affected Property on the applicable Termination Date.

         16.2     PROCEDURES.
                  ----------

                  (a) A Termination Notice shall contain: (i) notice of
         termination of this Lease with respect to the affected Property on a
         Payment Date not more than sixty (60) days after Lessor's receipt of
         such Termination Notice (the "Termination Date"); and (ii) a binding
         and irrevocable agreement of Lessee to pay the Termination Value for
         the applicable Property and purchase such Property on such Termination
         Date.

                  (b) On each Termination Date, Lessee shall pay to Lessor the
         Termination Value for the applicable Property, and Lessor shall convey
         such Property or the remaining portion thereof, if any, to Lessee (or
         Lessee's designee), all in accordance with Section 20.2.

                                  ARTICLE XVII

         17.1     LEASE EVENTS OF DEFAULT.
                  -----------------------

                  If any one (1) or more of the following events (each a "Lease
Event of Default") shall occur:

                  (a) Lessee shall fail to make payment of (i) any Basic Rent
         (except as set forth in clause (ii) within five (5) Business Days after
         the same has become due and payable or (ii) any Termination Value, on
         the date any such payment is due and payable, or any payment of Basic
         Rent or Supplemental Rent due on the due date of any such payment of
         Termination Value, or any amount due on the Expiration Date;

                  (b) Lessee shall fail to make payment of any Supplemental Rent
         (other than Supplemental Rent referred to in Section 17.1(a)(ii)) or
         any other Credit Party shall fail to make any payment of any amount
         under any Operative Agreement which has become due and payable within
         five (5) Business Days after receipt of notice that such payment is
         due;

                  (c) Lessee shall fail to maintain insurance as required by
         Article XIV of this Lease or to deliver any requisite annual
         certificate with respect thereto within ten (10) days of the date after

                                       22
<PAGE>

         receipt of notice of Lessee's failure to provide such certificate when
         due under the terms hereof;

                  (d) (i) Lessee shall fail to observe or perform any term,
         covenant, obligation or condition of Lessee under this Lease (including
         without limitation the Incorporated Covenants) or any other Operative
         Agreement to which Lessee is a party other than those set forth in
         Sections 17.1(a), (b) or (c) hereof, or any other Credit Party shall
         fail to observe or perform any term, covenant, obligation or condition
         of such Credit Party under any Operative Agreement other than those set
         forth in Section 17.1(b) hereof and such failure shall continue for
         thirty (30) days (or with respect to the Incorporated Covenants, the
         grace period, if any, applicable thereto) after the earlier of (A)
         notice thereof to the Lessee or such Credit Party and (B) the date the
         Lessee or such Credit Party otherwise has notice thereof, or (ii) any
         representation or warranty made by Lessee or any other Credit Party set
         forth in this Lease (including without limitation the Incorporated
         Representations and Warranties) or in any other Operative Agreement or
         in any document entered into in connection herewith or therewith or in
         any document, certificate or financial or other statement delivered in
         connection herewith or therewith shall be false or inaccurate in any
         material way when made;

                  (e) An Agency Agreement Event of Default shall have occurred
         and be continuing;

                  (f) Any Credit Party or any Subsidiary of any Credit Party
         shall default (beyond applicable periods of grace and/or notice and
         cure) in the payment when due of any principal of or interest on any
         Indebtedness having an outstanding principal amount of at least
         $25,000,000; or any other event or condition shall occur which results
         in a default of any such Indebtedness or enables the holder of any such
         Indebtedness or any Person acting on such holder's behalf to accelerate
         the maturity thereof;

                  (g) The liquidation or dissolution of any Credit Party, or the
         suspension of the business of any Credit Party, or the filing by any
         Credit Party of a voluntary petition or an answer seeking
         reorganization, arrangement, readjustment of its debts or for any other
         relief under the United States Bankruptcy Code, as amended, or under
         any other insolvency act or law, state or federal, now or hereafter
         existing, or any other action of any Credit Party indicating its
         consent to, approval of or acquiescence in, any such petition or
         proceeding; the application by any Credit Party for, or the appointment
         by consent or acquiescence of any Credit Party of a receiver, a trustee
         or a custodian of any Credit Party for all or a substantial part of its
         property; the making by any Credit Party of any assignment for the
         benefit of creditors; the inability of any Credit Party or the
         admission by any Credit Party in writing of its inability to pay its
         debts as they mature or any Credit Party is generally not paying its
         debts and other financial obligations as they become due and payable;
         or any Credit Party taking any corporate action to authorize any of the
         foregoing;

                  (h) The filing of an involuntary petition against any Credit
         Party in bankruptcy or seeking reorganization, arrangement,
         readjustment of its debts or for any other relief under the United

                                       23
<PAGE>

         States Bankruptcy Code, as amended, or under any other insolvency act
         or law, state or federal, now or hereafter existing; or the involuntary
         appointment of a receiver, a trustee or a custodian of any Credit Party
         for all or a substantial part of its property; or the issuance of a
         warrant of attachment, execution or similar process against any
         substantial part of the property of any Credit Party, and the
         continuance of any of such events for ninety (90) days undismissed or
         undischarged;

                  (i) The adjudication of any Credit Party as bankrupt or
         insolvent;

                  (j) The entering of any order in any proceedings against any
         Credit Party or any Subsidiary of any Credit Party decreeing the
         dissolution, divestiture or split-up of any Credit Party or any
         Subsidiary of any Credit Party, and such order remains in effect for
         more than sixty (60) days;

                  (k) Any report, certificate, financial statement or other
         instrument delivered to Lessor by or on behalf of any Credit Party
         pursuant to the terms of this Lease or any other Operative Agreement is
         false or misleading in any material respect when made or delivered;

                  (l) Any Parent Credit Agreement Event of Default shall have
         occurred and be continuing and shall not have been waived;

                  (m) A final judgment or judgments for the payment of money
         shall be rendered by a court or courts against any Credit Party or any
         Subsidiary of any Credit Party in excess of $1,000,000, in the
         aggregate, over amounts paid by insurance policies (other than
         self-insurance), and (i) the same shall not be discharged (or provision
         shall not be made for such discharge), or a stay of execution thereof
         shall not be procured, within thirty (30) days from the date of entry
         thereof, or (ii) any Credit Party or any such Subsidiary shall not,
         within said period of thirty (30) days, or such longer period during
         which execution of the same shall have been stayed, appeal therefrom
         and cause the execution thereof to be stayed during such appeal, or
         (iii) such judgment or judgments shall not be discharged (or provisions
         shall not be made for such discharge) within thirty (30) days after a
         decision has been reached with respect to such appeal and the related
         stay has been lifted;

                  (n) Any Credit Party or any member of the Controlled Group
         shall fail to pay when due an amount or amounts aggregating in excess
         of $2,000,000 which it shall have become liable to pay to the PBGC or
         to a Pension Plan under Title IV of ERISA; or notice of intent to
         terminate a Pension Plan or Pension Plans having aggregate Unfunded
         Liabilities in excess of $2,000,000 shall be filed under Title IV of
         ERISA by any Credit Party or any member of the Controlled Group, any
         plan administrator or any combination of the foregoing; or the PBGC
         shall institute proceedings under Title IV of ERISA to terminate or to
         cause a trustee to be appointed to administer any such Pension Plan or
         Pension Plans or a proceeding shall be instituted by a fiduciary of any
         such Pension Plan or Pension Plans against any Credit Party or any
         member of the Controlled Group to enforce Section 515 or 4219(c)(5) of
         ERISA; or a condition shall exist by reason of which the PBGC would be

                                       24
<PAGE>

         entitled to obtain a decree adjudicating that any such Pension Plan or
         Pension Plans must be terminated;

                  (o) (i) As a result of one (1) or more transactions after the
         date of this Lease, any "person" or "group" (each as used in Sections
         13(d)(3) and 14(d)(2) of the Exchange Act), who are not as of the
         Initial Closing Date owners of one percent (1%) or more of the voting
         stock of the Parent, either (A) becomes the "beneficial owner" (as
         defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of
         voting stock of the Parent (or securities convertible into or
         exchangeable for such voting stock) representing 15% or more of the
         combined voting power of all voting stock of the Parent (on a fully
         diluted basis) or (B) otherwise has the ability, directly or
         indirectly, to elect a majority of the board of directors of the
         Parent; or (ii) during any period of up to 24 consecutive months,
         commencing on the Initial Closing Date, individuals who at the
         beginning of such period were directors of the Parent shall cease for
         any reason (other than the death, disability or retirement of an
         officer of the Parent that is serving as a director at such time so
         long as another officer of the Parent replaces such Person as a
         director) to constitute a majority of the board of directors of the
         Parent; or (iii) any Person or two or more Persons acting in concert
         shall have acquired by contract or otherwise, or shall have entered
         into a contract or arrangement that, upon consummation thereof, will
         result in its or their acquisition, of the power to exercise, directly
         or indirectly, a controlling influence on the management or policies of
         the Parent;

                  (p) Any Operative Agreement shall cease to be in full force
         and effect;

                  (q) Except as to any Credit Party which is released in
         connection with the Operative Agreements, the guaranty given by the
         Guarantor under the Participation Agreement or any provision thereof
         shall cease to be in full force and effect, or the Guarantor or any
         Person acting by or on behalf of the Guarantor shall deny or disaffirm
         the Guarantor's obligations under such guaranty, or the Guarantor shall
         default in the due performance or observance of any term, covenant or
         agreement on its part to be performed or observed pursuant to any
         guaranty;

                  (r) Lessee shall fail to deposit or maintain Cash Equivalents
         equal to the amount required by Section 5.11 of the Participation
         Agreement in the Cash Collateral Account;

                  (s) Lessee shall fail to purchase all Tranche A Notes in
         accordance with the terms of the Operative Agreements, including
         without limitation Section 8.3(w) of the Participation Agreement;

                  (t) there shall occur (i) any cancellation, revocation,
         suspension or termination of any Medicare Certification, Medicare
         Provider Agreement, Medicaid Certification or Medicaid Provider
         Agreement affecting the Parent, any Subsidiary or any Contract
         Provider, or (ii) the loss of any other permits, licenses,
         authorizations, certifications or approvals from any federal, state or
         local Governmental Authority or termination of any contract with any
         such authority, in either case which cancellation, revocation,

                                       25
<PAGE>

         suspension, termination or loss (X) in the case of any suspension or
         temporary loss only, continues for a period greater than 60 days and
         (Y) results in the suspension or termination of operations of the
         Parent or any Subsidiary or in the failure of the Parent or any
         Subsidiaries or any Contract Provider to be eligible to participate in
         Medicare or Medicaid programs or to accept assignments of rights to
         reimbursement under Medicaid Regulations or Medicare Regulations, if
         and only if such Person, in the ordinary course of business,
         participates in the Medicare or Medicare programs or accepts
         assignments of rights to reimbursement thereunder; provided that any
         such events described in this Section 17.1(t) shall constitute an Event
         of Default only if such event shall result either singly or in the
         aggregate in the termination, cancellation, suspension or material
         impairment of operations or rights to reimbursement which produce 5% or
         more of the Parent's gross revenues (on an annualized basis); or

                  (u) Lessee shall fail to deliver to Lessor and the Agent an
         insurance certificate on or prior to January 15, 2002 that evidences
         all risk builder's risk and all risk of physical loss or damage
         insurance with respect to the Digital Hospital Property including (i) a
         deductible amount of $25,000 or less per occurrence, (ii) coverage from
         January 15, 2002 through the Completion Date, (iii) policy limit
         amounts of not less than $200,000,000 per occurrence and (iv) all other
         terms and conditions required pursuant to the Lease which are not in
         conflict with or less stringent than (i), (ii) or (iii) above.

then, in any such event, Lessor may, in addition to the other rights and
remedies provided for in this Article XVII and in Section 18.1, terminate this
Lease by giving Lessee five (5) days notice of such termination (provided,
notwithstanding the foregoing, this Lease shall be deemed to be automatically
terminated without the giving of notice upon the occurrence of a Lease Event of
Default under Sections 17.1(g), (h), (i) or (j)), and this Lease shall
terminate, and all rights of Lessee under this Lease shall cease. Lessee shall,
to the fullest extent permitted by law, pay as Supplemental Rent all costs and
expenses incurred by or on behalf of Lessor or any other Financing Party,
including without limitation reasonable fees and expenses of counsel, as a
result of any Lease Event of Default hereunder.

         A POWER OF SALE HAS BEEN GRANTED IN THIS LEASE. A POWER OF SALE MAY
ALLOW LESSOR TO TAKE THE PROPERTIES AND SELL THE PROPERTIES WITHOUT GOING TO
COURT IN A FORECLOSURE ACTION UPON THE OCCURRENCE OF A LEASE EVENT OF DEFAULT.

         17.2     SURRENDER OF POSSESSION.
                  -----------------------

                  If a Lease Event of Default shall have occurred and be
continuing, and whether or not this Lease shall have been terminated pursuant to
Section 17.1, Lessee shall, upon thirty (30) days written notice, surrender to
Lessor possession of the Properties. Lessor may enter upon and repossess the
Properties by such means as are available at law or in equity, and may remove
Lessee and all other Persons and any and all personal property and Lessee's
equipment and personalty and severable Modifications from the Properties. Lessor
shall have no liability by reason of any such entry, repossession or removal
performed in accordance with applicable law. Upon the written demand of Lessor,
Lessee shall return the Properties promptly to Lessor, in the manner and

                                       26
<PAGE>

condition required by, and otherwise in accordance with the provisions of,
Section 22.1(c) hereof.

         17.3     RELETTING.
                  ---------

                  If a Lease Event of Default shall have occurred and be
continuing, and whether or not this Lease shall have been terminated pursuant to
Section 17.1, Lessor may, but shall be under no obligation to, relet any or all
of the Properties, for the account of Lessee or otherwise, for such term or
terms (which may be greater or less than the period which would otherwise have
constituted the balance of the Term) and on such conditions (which may include
concessions or free rent) and for such purposes as Lessor may determine, and
Lessor may collect, receive and retain the rents resulting from such reletting.
Lessor shall not be liable to Lessee for any failure to relet any Property or
for any failure to collect any rent due upon such reletting.

         17.4     DAMAGES.
                  -------

                  Neither (a) the termination of this Lease as to all or any of
the Properties pursuant to Section 17.1; (b) the repossession of all or any of
the Properties; nor (c) the failure of Lessor to relet all or any of the
Properties, the reletting of all or any portion thereof, nor the failure of
Lessor to collect or receive any rentals due upon any such reletting, shall
relieve Lessee of its liabilities and obligations hereunder, all of which shall
survive any such termination, repossession or reletting. If any Lease Event of
Default shall have occurred and be continuing and notwithstanding any
termination of this Lease pursuant to Section 17.1, Lessee shall forthwith pay
to Lessor all Rent and other sums due and payable hereunder to and including
without limitation the date of such payment. Thereafter, on the days on which
the Basic Rent or Supplemental Rent, as applicable, are payable under this Lease
or would have been payable under this Lease if the same had not been terminated
pursuant to Section 17.1 and until the end of the Term hereof or what would have
been the Term in the absence of such termination, Lessee shall pay Lessor, as
current liquidated damages (it being agreed that it would be impossible
accurately to determine actual damages) an amount equal to the Basic Rent and
Supplemental Rent that are payable under this Lease or would have been payable
by Lessee hereunder if this Lease had not been terminated pursuant to Section
17.1, less the net proceeds, if any, which are actually received by Lessor with
respect to the period in question of any reletting of any Property or any
portion thereof; provided, that Lessee's obligation to make payments of Basic
Rent and Supplemental Rent under this Section 17.4 shall continue only so long
as Lessor shall not have received the amounts specified in Section 17.6. In
calculating the amount of such net proceeds from reletting, there shall be
deducted all of Lessor's, any Holder's, the Agent's and any Lender's reasonable
expenses in connection therewith, including without limitation repossession
costs, brokerage or sales commissions, fees and expenses for counsel and any
necessary repair or alteration costs and expenses incurred in preparation for
such reletting. To the extent Lessor receives any damages pursuant to this
Section 17.4, such amounts shall be regarded as amounts paid on account of Rent.
Lessee specifically acknowledges and agrees that its obligations under this
Section 17.4 shall be absolute and unconditional under any and all circumstances
and shall be paid and/or performed, as the case may be, without notice or demand
and without any abatement, reduction, diminution, setoff, defense, counterclaim
or recoupment whatsoever.

                                       27
<PAGE>

         17.5     POWER OF SALE.
                  -------------

                  Without limiting any other remedies set forth in this Lease,
Lessor and Lessee agree that Lessee has granted, pursuant to Section 7.1(b)
hereof and each Lease Supplement, a Lien against the Properties WITH POWER OF
SALE, and that, upon the occurrence and during the continuance of any Lease
Event of Default, Lessor shall have the power and authority, to the extent
provided by law, after prior notice and lapse of such time as may be required by
law, to foreclose its interest (or cause such interest to be foreclosed) in all
or any part of the Properties.

         17.6     FINAL LIQUIDATED DAMAGES.
                  ------------------------

                  If a Lease Event of Default shall have occurred and be
continuing, whether or not this Lease shall have been terminated pursuant to
Section 17.1 and whether or not Lessor shall have collected any current
liquidated damages pursuant to Section 17.4, Lessor shall have the right to
recover, by demand to Lessee and at Lessor's election, and Lessee shall pay to
Lessor, as and for final liquidated damages, but exclusive of the indemnities
payable under Section 11 of the Participation Agreement (which, if requested,
shall be paid concurrently), and in lieu of all current liquidated damages
beyond the date of such demand (it being agreed that it would be impossible
accurately to determine actual damages) the Termination Value. Upon payment of
the amount specified pursuant to the first sentence of this Section 17.6, Lessee
shall be entitled to receive from Lessor, either at Lessee's request or upon
Lessor's election, in either case at Lessee's cost, an assignment of Lessor's
entire right, title and interest in and to the Properties, Improvements,
Fixtures, Modifications, Equipment and all components thereof, in each case in
recordable form and otherwise in conformity with local custom and free and clear
of the Lien of this Lease (including without limitation the release of any
memoranda of Lease and/or the Lease Supplement recorded in connection therewith)
and any Lessor Liens. The Properties shall be conveyed to Lessee "AS-IS,
WHERE-IS" and in their then present physical condition. If any statute or rule
of law shall limit the amount of such final liquidated damages to less than the
amount agreed upon, Lessor shall be entitled to the maximum amount allowable
under such statute or rule of law; provided, however, Lessee shall not be
entitled to receive an assignment of Lessor's interest in the Properties, the
Improvements, Fixtures, Modifications, Equipment or the components thereof
unless Lessee shall have paid in full the Termination Value. Lessee specifically
acknowledges and agrees that its obligations under this Section 17.6 shall be
absolute and unconditional under any and all circumstances and shall be paid
and/or performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

         17.7     ENVIRONMENTAL COSTS.
                  -------------------

                  If a Lease Event of Default shall have occurred and be
continuing, and whether or not this Lease shall have been terminated pursuant to
Section 17.1, Lessee shall pay directly to any third party (or at Lessor's
election, reimburse Lessor) for the cost of any environmental testing and/or
remediation work undertaken respecting any Property, as such testing or work is
deemed appropriate in the reasonable judgment of Lessor, and shall indemnify and
hold harmless Lessor and each other Indemnified Person therefrom. Lessee shall
pay all amounts referenced in the immediately preceding sentence within ten (10)
days of any request by Lessor for such payment. The provisions of this Section

                                       28
<PAGE>

17.7 shall not limit the obligations of Lessee under any Operative Agreement
regarding indemnification obligations, environmental testing, remediation and/or
work.

         17.8     WAIVER OF CERTAIN RIGHTS.
                  ------------------------

                  If this Lease shall be terminated pursuant to Section 17.1,
Lessee waives, to the fullest extent permitted by Law, (a) any notice of
re-entry or the institution of legal proceedings to obtain re-entry or
possession; (b) any right of redemption, re-entry or possession; (c) the benefit
of any laws now or hereafter in force exempting property from liability for rent
or for debt; and (d) any other rights which might otherwise limit or modify any
of Lessor's rights or remedies under this Article XVII.

         17.9     ASSIGNMENT OF RIGHTS UNDER CONTRACTS.
                  ------------------------------------

                  If a Lease Event of Default shall have occurred and be
continuing, and whether or not this Lease shall have been terminated pursuant to
Section 17.1, Lessee shall upon Lessor's demand immediately assign, transfer and
set over to Lessor all of Lessee's right, title and interest in and to each
agreement executed by Lessee in connection with the acquisition, installation,
testing, use, development, construction, operation, maintenance, repair,
refurbishment and restoration of the Properties (including without limitation
all right, title and interest of Lessee with respect to all warranty,
performance, service and indemnity provisions), as and to the extent that the
same relate to the acquisition, installation, testing, use, development,
construction, operation, maintenance, repair, refurbishment and restoration of
the Properties or any of them.

         17.10    REMEDIES CUMULATIVE.
                  -------------------

         The remedies herein provided shall be cumulative and in addition to
(and not in limitation of) any other remedies available at law, equity or
otherwise, including without limitation any mortgage foreclosure remedies.

         17.11    LIMITATION REGARDING CERTAIN LEASE EVENTS OF DEFAULT.
                  ----------------------------------------------------

         Notwithstanding anything contained herein or in any other Operative
Agreement to the contrary, upon the occurrence and during the continuance of a
Lease Event of Default attributable solely to Sections 17.1(o) or (t) or any
other Lease Event of Default that occurs as a direct result of the occurrence of
a Material Adverse Effect pursuant to subsections (a), (b) or (e) of the
definition of Material Adverse Effect, the maximum aggregate amount that the
Lessor, or any Person acting by or through the Lessor, including without
limitation the Agent, the Lenders and the Holders, shall be entitled to recover
from the Credit Parties on account of such Lease Event of Default attributable
solely to Sections 17.1(o) or (t) shall be an amount equal to 89.9% of the
aggregate Property Cost for all Properties, provided, this Section 17.11 shall
not in any way limit any Full Recourse Event of Default or any indemnity payment
to any Indemnified Person, including without limitation, the indemnities set
forth in Sections 11.1 through 11.7 of the Participation Agreement and such
indemnity payment shall not be included in the calculation set forth above. The
Lessee nonetheless acknowledges and agrees that even though the maximum

                                       29
<PAGE>

aggregate recovery from the Credit Parties is limited as aforesaid, the Lessor's
right of recovery from the Properties (as opposed to any recovery from the
Credit Parties) is not so limited and the Lessor shall be entitled to recover
100% of the amounts owed to the Lessor in accordance with the Operative
Agreements from its interest in the Properties.

                                  ARTICLE XVIII

         18.1     LESSOR'S RIGHT TO CURE LESSEE'S LEASE DEFAULTS.
                  ----------------------------------------------

                  Lessor, without waiving or releasing any obligation or Lease
Event of Default, may (but shall be under no obligation to) remedy any Lease
Event of Default for the account and at the sole cost and expense of Lessee,
including without limitation the failure by Lessee to maintain the insurance
required by Article XIV, and may, to the fullest extent permitted by law, and
notwithstanding any right of quiet enjoyment in favor of Lessee, enter upon any
Property, and take all such action thereon as may be necessary or appropriate
therefor. No such entry shall be deemed an eviction of any lessee. All
out-of-pocket costs and expenses so incurred (including without limitation fees
and expenses of counsel), together with interest thereon at the Overdue Rate
from the date on which such sums or expenses are paid by Lessor, shall be paid
by Lessee to Lessor on demand.

                                   ARTICLE XIX

         19.1     PROVISIONS RELATING TO LESSEE'S EXERCISE OF ITS PURCHASE
                  --------------------------------------------------------
                  OPTION.
                  ------

                  Subject to Section 19.2, in connection with any termination of
this Lease with respect to any Property pursuant to the terms of Section 16.2,
or in connection with Lessee's exercise of its Purchase Option, upon the date on
which this Lease is to terminate with respect to any Property, and upon tender
by Lessee of the amounts set forth in Sections 16.2(b) or 20.2, as applicable,
Lessor shall execute and deliver to Lessee (or to Lessee's designee) at Lessee's
cost and expense an assignment (by deed or other appropriate instrument) of
Lessor's entire interest in such Property, in each case in recordable form and
otherwise in conformity with local custom and free and clear of any Lessor Liens
attributable to Lessor but without any other warranties (of title or otherwise)
from Lessor. Such Property shall be conveyed to Lessee "AS-IS, "WHERE-IS" and in
then present physical condition.

         19.2     NO PURCHASE OR TERMINATION WITH RESPECT TO LESS THAN ALL OF A
                  -------------------------------------------------------------
                  PROPERTY.
                  --------

                  Lessee shall not be entitled to exercise its Purchase Option
or the Sale Option separately with respect to a portion of any Property
consisting of Land, Equipment, Improvements and/or any interest pursuant to a
Ground Lease but shall be required to exercise its Purchase Option or the Sale
Option with respect to an entire Property.

                                       30
<PAGE>

                                   ARTICLE XX

         20.1     PURCHASE OPTION OR SALE OPTION-GENERAL PROVISIONS.
                  -------------------------------------------------

                  The provisions of this Section 20.1 regarding the Sale Option
are subject to the provisions of Section 22.6. Not less than one hundred eighty
(180) days and no more than two hundred forty (240) days prior to the Expiration
Date (as such may have been extended beyond the seventh annual anniversary of
the Initial Closing Date pursuant to Section 2.2) or, respecting the Purchase
Option only not less than sixty (60) days prior to the applicable Payment Date
(such Expiration Date or, respecting the Purchase Option only, any such Payment
Date being hereinafter referred to as the "Election Date"), Lessee may give
Lessor irrevocable written notice (the "Election Notice") that Lessee is
electing to exercise either (a) the option to purchase all, but not less than
all, the Properties on the applicable Election Date (the "Purchase Option") or
(b) with respect to an Election Notice given in connection with the Expiration
Date only, the option to remarket all, but not less than all, the Properties to
a Person other than Lessee or any Affiliate of Lessee and cause a sale of such
Properties to occur on the applicable Election Date (subject to Section 22.6)
pursuant to the terms of Section 22.1 (the "Sale Option"). If Lessee does not
give an Election Notice indicating the Purchase Option or the Sale Option at
least one hundred eighty (180) days and not more than two hundred forty (240)
days prior to the Expiration Date, then Lessee shall be deemed to have elected
for the Purchase Option to apply on the Expiration Date.

         20.2     LESSEE PURCHASE OPTION.
                  ----------------------

                  Provided, no Default or Event of Default shall have occurred
and be continuing (other than those that will be cured by the payment of the
Termination Value for all the Properties) and provided, that the Election Notice
has been appropriately given specifying the Purchase Option, Lessee shall
purchase all the Properties on the applicable Election Date at a price equal to
the Termination Value for such Properties (which the parties do not intend to be
a "bargain" purchase price).

                  Subject to Section 19.2, in connection with any termination of
this Lease with respect to any Property pursuant to the terms of Section 16.2,
or in connection with Lessee's exercise of its Purchase Option, upon the date on
which this Lease is to terminate with respect to a Property or all of the
Properties, and upon tender by Lessee of the amounts set forth in Section
16.2(b) or this Section 20.2, as applicable, Lessor shall execute, acknowledge
(where required) and deliver to Lessee, at Lessee's cost and expense, each of
the following: (a) a termination or assignment (as requested by the Lessee) of
each applicable Ground Lease and special or limited warranty Deeds conveying
each Property (to the extent it is real property not subject to a Ground Lease)
to Lessee free and clear of the Lien of this Lease, the Lien of the Credit
Documents and any Lessor Liens; (b) a Bill of Sale conveying each Property (to
the extent it is personal property) to Lessee free and clear of the Lien of this
Lease, the Lien of the Credit Documents and any Lessor Liens; (c) any real
estate tax affidavit or other document required by law to be executed and filed
in order to record the applicable Deed and/or the applicable Ground Lease
termination; and (d) FIRPTA affidavits. All of the foregoing documentation must

                                       31
<PAGE>

be in form and substance reasonably satisfactory to Lessor. The applicable
Property shall be conveyed to Lessee "AS-IS, WHERE-IS" and in then present
physical condition.

                  If any Property is the subject of remediation efforts
respecting Hazardous Substances at the applicable Election Date which could
materially and adversely impact the Fair Market Sales Value of such Property
(with materiality determined in Lessor's discretion), then Lessee shall be
obligated to purchase each such Property pursuant to Section 20.2.

                  On the applicable Election Date on which Lessee has elected to
exercise its Purchase Option, Lessee shall pay (or cause to be paid) to Lessor,
the Agent and all other parties, as appropriate, the sum of all costs and
expenses incurred by any such party in connection with the election by Lessee to
exercise its Purchase Option and all Rent and all other amounts then due and
payable or accrued under this Lease and/or any other Operative Agreement.

         20.3     THIRD PARTY SALE OPTION.
                  -----------------------

                  (a) Provided, that (i) no Default or Event of Default shall
         have occurred and be continuing and (ii) the Election Notice has been
         appropriately given specifying the Sale Option, Lessee shall undertake
         to cause a sale of the Properties on the applicable Election Date (all
         as specified in the Election Notice), in accordance with the provisions
         of Section 22.1 hereof.

                  (b) In the event Lessee exercises the Sale Option then, as
         soon as practicable and in all events not less than sixty (60) days and
         not more than one hundred eighty (180) days prior to the Sale Date,
         Lessee at its expense shall cause to be delivered to Lessor a Phase I
         environmental site assessment for each of the Properties recently
         prepared (no more than thirty (30) days old prior to the date of
         delivery) by an independent recognized professional reasonably
         acceptable to Lessor and in form, scope and content reasonably
         satisfactory to Lessor. In the event that Lessor shall not have
         received such environmental site assessment by the date sixty (60) days
         prior to the Sale Date or in the event that such environmental
         assessment shall reveal the existence of any material violation of
         Environmental Laws, other material Environmental Violation or potential
         material Environmental Violation (with materiality determined in each
         case by Lessor in its reasonable discretion), then Lessee on the Sale
         Date shall pay to Lessor an amount equal to the Termination Value for
         all the Properties and any and all other amounts due and owing
         hereunder. Upon receipt of such payment and all other amounts due under
         the Operative Agreements, Lessor shall transfer to Lessee all of
         Lessor's right, title and interest in and to all the Properties in
         accordance with Section 19.1.

                                   ARTICLE XXI

         21.1     [INTENTIONALLY OMITTED].

                                       32
<PAGE>

                                  ARTICLE XXII

         22.1     SALE PROCEDURE.
                  --------------

                  (a) The provisions of this Section 22.1 are subject to the
         provisions of Section 22.6. During the Marketing Period, Lessee, on
         behalf of Lessor, shall obtain bids for the cash purchase of all the
         Properties in connection with a sale to one (1) or more third party
         purchasers to be consummated on the Sale Date for the highest price
         available, shall notify Lessor promptly of the name and address of each
         prospective purchaser and the cash price which each prospective
         purchaser shall have offered to pay for each such Property and shall
         provide Lessor with such additional information about the bids and the
         bid solicitation procedure as Lessor may reasonably request from time
         to time. All such prospective purchasers must be Persons other than
         Lessee or any Affiliate of Lessee. On the Sale Date, Lessee shall pay
         (or cause to be paid) to Lessor and all other parties, as appropriate,
         the sum of all costs and expenses incurred by Lessor and/or the Agent
         (as the case may be) in connection with such sale of one or more
         Properties, all Rent and all other amounts then due and payable or
         accrued under this Lease and/or any other Operative Agreement.

                  Lessor may reject any and all bids and may solicit and obtain
         bids by giving Lessee written notice to that effect. Lessor may elect
         to retain one or more of the Properties by giving Lessee prior written
         notice of Lessor's election to retain the same, and promptly upon
         receipt of such notice, Lessee shall surrender, or cause to be
         surrendered, each of the Properties specified in such notice in
         accordance with the terms and conditions of Section 10.1. Upon
         acceptance of any bid, Lessor agrees, at Lessee's request and expense,
         to execute a contract of sale with respect to such sale, so long as the
         same is consistent with the terms of this Article 22 and provides by
         its terms that it is nonrecourse to Lessor.

                  Unless Lessor shall have elected to retain one or more of the
         Properties pursuant to the provisions of the preceding paragraph,
         Lessee shall arrange for Lessor to sell all the Properties free and
         clear of the Lien of this Lease and any Lessor Liens attributable to
         Lessor, without recourse or warranty (of title or otherwise), for cash
         on the Sale Date to the purchaser or purchasers offering the highest
         cash sales price, as identified by Lessee or Lessor, as the case may
         be. To effect such transfer and assignment, Lessor shall execute,
         acknowledge (where required) and deliver to the appropriate purchaser
         each of the following: (a) special or limited warranty Deeds conveying
         each such Property (to the extent it is real property titled to Lessor)
         and an assignment of the Ground Lease conveying the leasehold interest
         of Lessor in each such Property (to the extent it is real property and
         subject to a Ground Lease) to the appropriate purchaser free and clear
         of the Lien of this Lease, the Lien of the Credit Documents and any
         Lessor Liens; (b) a Bill of Sale conveying each such Property (to the
         extent it is personal property) titled to Lessor to the appropriate
         purchaser free and clear of the Lien of this Lease, the Lien of the
         Credit Documents and any Lessor Liens; (c) any real estate tax
         affidavit or other document required by law to be executed and filed in
         order to record each Deed and/or each Ground Lease assignment; and (d)
         FIRPTA affidavits, as appropriate. All of the foregoing documentation

                                       33
<PAGE>

         must be in form and substance reasonably satisfactory to Lessor. Lessee
         shall surrender the Properties so sold or subject to such documents to
         each purchaser in the condition specified in Section 10.1, or in such
         other condition as may be agreed between Lessee and such purchaser.
         Lessee shall not take or fail to take any action which would have the
         effect of unreasonably discouraging bona fide third party bids for any
         Property. If any Property (i) is not sold on the Sale Date in
         accordance with the terms of this Section 22.1, or (ii) is retained by
         Lessor pursuant to an affirmative election made by Lessor pursuant to
         the second sentence of the second paragraph of this Section 22.1(a),
         then (x) Lessee shall be obligated to pay Lessor on the Sale Date an
         amount equal to the Maximum Residual Guarantee Amount and (y) Lessor
         shall retain each applicable Property for subsequent marketing in
         accordance with the provisions of Section 22.6.

                  (b) If the Properties are sold on a Sale Date to one (1) or
         more third party purchasers in accordance with the terms of Section
         22.1(a), Lessee hereby unconditionally promises to pay to Lessor on the
         Sale Date all Rent and all other amounts then due and owing pursuant to
         the Operative Agreements. If the aggregate purchase price paid for all
         the Properties is less than the sum of the aggregate Property Cost for
         all the Properties (hereinafter such difference shall be referred to as
         the "Deficiency Balance"), then Lessee hereby unconditionally promises
         to pay to Lessor on the Sale Date the lesser of (i) the Deficiency
         Balance, or (ii) the Maximum Residual Guarantee Amount for all the
         Properties. On a Sale Date if (x) Lessor receives the aggregate
         Termination Value for all the Properties from one (1) or more third
         party purchasers, (y) Lessor and such other parties receive all other
         amounts specified in the last sentence of the first paragraph of
         Section 22.1(a) and (z) the aggregate purchase price paid for all the
         Properties on such date exceeds the sum of the aggregate Property Cost
         for all the Properties, then Lessee may retain such excess. If one or
         more of the Properties are retained by Lessor pursuant to an
         affirmative election made by Lessor pursuant to the provisions of
         Section 22.1(a), then Lessee hereby unconditionally promises to pay to
         Lessor on the Sale Date all Rent and all other amounts then due and
         owing pursuant to the Operative Agreements and an amount equal to the
         Maximum Residual Guarantee Amount for the Properties so retained. Any
         payment of the foregoing amounts described in this Section 22.1(b)
         shall be made together with a payment of all other amounts referenced
         in the last sentence of the first paragraph of Section 22.1(a).

                  (c) In the event that all the Properties are either sold to
         one (1) or more third party purchasers on the Sale Date or retained by
         Lessor in connection with an affirmative election made by Lessor
         pursuant to the provisions of Section 22.1(a), then in either case on
         the applicable Sale Date Lessee shall provide Lessor or such third
         party purchaser (unless otherwise agreed by such third party purchaser)
         with (i) all permits, certificates of occupancy, governmental licenses
         and authorizations necessary to use, operate, repair, access and
         maintain each such Property for the purpose it is being used by Lessee,
         and (ii) such manuals, permits, easements, licenses, intellectual
         property, know-how, rights-of-way and other rights and privileges in
         the nature of an easement as are reasonably necessary or desirable in
         connection with the use, operation, repair, access to or maintenance of
         each such Property for its intended purpose or otherwise as Lessor or
         such third party purchaser(s) shall reasonably request (and a

                                       34
<PAGE>

         royalty-free license or similar agreement to effectuate the foregoing
         on terms reasonably agreeable to Lessor or such third party
         purchaser(s), as applicable). All assignments, licenses, easements,
         agreements and other deliveries required by clauses (i) and (ii) of
         this paragraph (c) shall be in form reasonably satisfactory to Lessor
         or such third party purchaser(s), as applicable, and to the extent
         lawfully assignable shall be fully assignable (including without
         limitation both primary assignments and assignments given in the nature
         of security) without payment of any fee, cost or other charge. Lessee
         shall also execute any documentation requested by Lessor or such third
         party purchaser(s), as applicable, evidencing the continuation or
         assignment of each Ground Lease.

         22.2     APPLICATION OF PROCEEDS OF SALE.
                  -------------------------------

                  Lessor shall transfer to the Agent the proceeds of sale of any
Property for application and distribution in accordance with Section 8.7 of the
Participation Agreement.

         22.3     INDEMNITY FOR EXCESSIVE WEAR.
                  ----------------------------

         If the sum of (a) the proceeds of the sale described in Section 22.1
with respect to the Properties, if any, plus (b) the amount previously paid by
the Lessee with respect to the Maximum Residual Guarantee Amount (less any
portion of the Maximum Residual Guarantee Amount repaid to the Lessee pursuant
to the Operative Agreements, including without limitation Section 8.7(b)(viii)
of the Participation Agreement) shall be less than the Termination Value with
respect to the Properties, and on the Expiration Date it shall have been
reasonably determined (pursuant to the Appraisal Procedure) that the Fair Market
Sales Value of the Properties shall have been impaired by greater than expected
wear and tear during the term of the Lease, Lessee shall pay to Lessor within
ten (10) days after receipt of Lessor's written statement the amount of such
excess wear and tear determined by the Appraisal Procedure.

         22.4     APPRAISAL PROCEDURE.
                  -------------------

                  For determining the Fair Market Sales Value of the Properties
or any other amount which may, pursuant to any provision of any Operative
Agreement, be determined by an appraisal procedure, Lessor and Lessee shall use
the following procedure (the "Appraisal Procedure"). Lessor and Lessee shall
endeavor to reach a mutual agreement as to such amount for a period of ten (10)
days from commencement of the Appraisal Procedure under the applicable section
of the Lease, and if they cannot agree within ten (10) days, then two (2)
qualified appraisers, one (1) chosen by Lessee and one (1) chosen by Lessor,
shall mutually agree thereupon, but if either party shall fail to choose an
appraiser within twenty (20) days after notice from the other party of the
selection of its appraiser, then the appraisal by such appointed appraiser shall
be binding on Lessee and Lessor. If the two (2) appraisers cannot agree within
twenty (20) days after both shall have been appointed, then a third appraiser
shall be selected by the two (2) appraisers or, failing agreement as to such
third appraiser within thirty (30) days after both shall have been appointed, by
the American Arbitration Association. The decisions of the three (3) appraisers
shall be given within twenty (20) days of the appointment of the third appraiser
and the decision of the appraiser most different from the average of the other
two (2) shall be discarded and such average shall be binding on Lessor and

                                       35
<PAGE>

Lessee; provided, that if the highest appraisal and the lowest appraisal are
equidistant from the third appraisal, the third appraisal shall be binding on
Lessor and Lessee. The fees and expenses of the appraiser appointed by Lessee
shall be paid by Lessee; the fees and expenses of the appraiser appointed by
Lessor shall be paid by Lessor (such fees and expenses not being indemnified
pursuant to Section 11 of the Participation Agreement); and the fees and
expenses of the third appraiser shall be divided equally between Lessee and
Lessor.

         22.5     CERTAIN OBLIGATIONS CONTINUE.
                  ----------------------------

                  During the Marketing Period, the obligation of Lessee to pay
Rent with respect to the Properties (including without limitation the
installment of Basic Rent due on the Sale Date) shall continue undiminished
until payment in full to Lessor of the sale proceeds, if any, the Maximum
Residual Guarantee Amount, the amount due under Section 22.3, if any, and all
other amounts due to Lessor or any other Person with respect to all Properties
or any Operative Agreement. Lessor shall have the right, but shall be under no
duty, to solicit bids, to inquire into the efforts of Lessee to obtain bids or
otherwise to take action in connection with any such sale, other than as
expressly provided in this Article XXII.

         22.6     EXTENDED REMARKETING PERIOD.
                  ---------------------------

                  To the extent Lessee has properly elected the Sale Option and
not caused each of the Properties to be sold to a third party purchaser by the
Expiration Date in accordance with the provisions of Sections 20.1, 20.3 and
22.1 through 22.5, then on the Expiration Date Lessee shall pay to Lessor the
Maximum Residual Guarantee Amount and all Rent and all other amounts then due
and owing pursuant to the Operative Agreements. For a period not to exceed one
(1) year beginning on the Expiration Date (the "Extended Remarketing Period"),
Lessor shall have a right to market and offer for sale its right, title and
interest in the Properties to third party purchasers and during such time,
Lessor shall have exclusive control of the bid process. During the Extended
Remarketing Period, Lessee shall have vacated the Properties and relinquished
all of its right, title and interest therein, but Lessee shall continue to be
responsible for the satisfaction of all matters described in (and compliance
with) Section 3.3.

                  To the extent Lessor sells one or more of the Properties to a
third party purchaser during the Extended Remarketing Period, Lessor shall
deliver the documentation specified in the third paragraph of Section 22.1(a)
and the sales proceeds paid by such third party purchaser for each such Property
shall be paid to the Agent (on behalf of Lessor) for allocation and distribution
in accordance with Section 8.7(b)(iii) of the Participation Agreement. If with
respect to any of the Properties so sold, Advances were used to pay for Excluded
Costs while any such Property was a Construction Period Property, then Section
8.7(b)(viii) shall apply.

                  To the extent Lessor does not sell any particular Property
during the Extended Remarketing Period, then the Fair Market Sales Value of each
such Property as of the Expiration Date shall be determined pursuant to the
Appraisal Procedure. Lessor shall cause the Lenders and the Holders to
contribute ratably (based on such Lender's or such Holder's proportion of the
aggregate Loans or aggregate Holder Advances, respectively), but not jointly and
severally, to the Agent (on behalf of Lessor) an aggregate amount equal to the

                                       36
<PAGE>

portion of such appraised value of each such Property (as determined pursuant to
the Appraisal Procedure) which would be payable to Lessee pursuant to Section
8.7(b)(viii) of the Participation Agreement if such Property had been sold for
such appraised value on the Expiration Date.

                                  ARTICLE XXIII

         23.1     HOLDING OVER.
                  ------------

                  If Lessee shall for any reason remain in possession of a
Property after the expiration or earlier termination of this Lease as to such
Property (unless such Property is conveyed to Lessee), such possession shall be
as a tenancy at sufferance during which time Lessee shall continue to pay
Supplemental Rent that would be payable by Lessee hereunder were the Lease then
in full force and effect with respect to such Property and Lessee shall continue
to pay Basic Rent at the lesser of the highest lawful rate and one hundred ten
percent (110%) of the last payment of Basic Rent due with respect to such
Property prior to such expiration or earlier termination of this Lease. Such
Basic Rent shall be payable from time to time upon demand by Lessor and such
additional amount of Basic Rent shall be applied by Lessor ratably to the
Lenders and the Holders based on their relative amounts of the then outstanding
aggregate Property Cost for all Properties. During any period of tenancy at
sufferance, Lessee shall, subject to the second preceding sentence, be obligated
to perform and observe all of the terms, covenants and conditions of this Lease,
but shall have no rights hereunder other than the right, to the extent given by
law to tenants at sufferance, to continue their occupancy and use of such
Property. Nothing contained in this Article XXIII shall constitute the consent,
express or implied, of Lessor to the holding over of Lessee after the expiration
or earlier termination of this Lease as to any Property (unless such Property is
conveyed to Lessee) and nothing contained herein shall be read or construed as
preventing Lessor from maintaining a suit for possession of such Property or
exercising any other remedy available to Lessor at law or in equity.

                                  ARTICLE XXIV

         24.1     RISK OF LOSS.
                  ------------

                  During the Term, unless Lessee shall not be in actual
possession of any Property in question solely by reason of Lessor's exercise of
its remedies of dispossession under Article XVII, the risk of loss or decrease
in the enjoyment and beneficial use of such Property as a result of the damage
or destruction thereof by fire, the elements, casualties, thefts, riots, wars or
otherwise is assumed by Lessee, and Lessor shall in no event be answerable or
accountable therefor.

                                       37
<PAGE>

                                   ARTICLE XXV

         25.1     ASSIGNMENT.
                  ----------

                  (a) Lessee may not assign this Lease or any of its rights or
         obligations hereunder or with respect to any Property in whole or in
         part to any Person without the prior written consent of the Agent, the
         Lenders, the Holders and Lessor.

                  (b) No assignment by Lessee (referenced in this Section 25.1
         or otherwise) or other relinquishment of possession to any Property
         shall in any way discharge or diminish any of the obligations of Lessee
         to Lessor hereunder and Lessee shall remain directly and primarily
         liable under the Operative Agreements as to any rights or obligations
         assigned by Lessee or regarding any Property in which rights or
         obligations have been assigned or otherwise transferred.

         25.2     SUBLEASES.
                  ---------

                  (a) Promptly, but in any event within five (5) Business Days,
         following the execution and delivery of any sublease permitted by this
         Article XXV, Lessee shall notify Lessor of the execution of such
         sublease. As of the date of each Lease Supplement, Lessee shall lease
         the respective Property described in such Lease Supplement from Lessor,
         and any existing tenant respecting such Property shall automatically be
         deemed to be a subtenant of Lessee and not a tenant of Lessor.

                  (b) Without the prior written consent of the Agent, any
         Lender, any Holder or Lessor and subject to the other provisions of
         this Section 25.2, Lessee may sublet any Property or portion thereof to
         any Subsidiary of the Parent or up to thirty percent (30%), in the
         aggregate, of the square footage of the applicable Property to any
         healthcare providers or businesses related to the operations of the
         Property in accordance with market and industry practices and
         standards, provided in all cases the Lessee shall remain primarily
         liable with respect to the Company Obligations. Except as referenced in
         the immediately preceding sentence, no other subleases shall be
         permitted unless consented to in writing by Lessor. All subleasing
         shall be done on market terms and shall in no way diminish the fair
         market value or useful life of any applicable Property.

                  (c) No sublease (referenced in this Section 25.2 or otherwise)
         or other relinquishment of possession to any Property shall in any way
         discharge or diminish any of Lessee's obligations to Lessor hereunder
         and Lessee shall remain directly and primarily liable under this Lease
         as to such Property, or portion thereof, so sublet. The term of any
         such sublease shall not extend beyond the Term. Each sublease shall be
         expressly subject and subordinate to this Lease.

                                       38
<PAGE>

                                  ARTICLE XXVI

         26.1     NO WAIVER.
                  ---------

                  No failure by Lessor or Lessee to insist upon the strict
performance of any term hereof or to exercise any right, power or remedy upon a
default hereunder, and no acceptance of full or partial payment of Rent during
the continuance of any such default, shall constitute a waiver of any such
default or of any such term. To the fullest extent permitted by law, no waiver
of any default shall affect or alter this Lease, and this Lease shall continue
in full force and effect with respect to any other then existing or subsequent
default.

                                  ARTICLE XXVII

         27.1     ACCEPTANCE OF SURRENDER.
                  -----------------------

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

         27.2     NO MERGER OF TITLE.
                  ------------------

                  There shall be no merger of this Lease or of the leasehold
estate created hereby by reason of the fact that the same Person may acquire,
own or hold, directly or indirectly, in whole or in part, (a) this Lease or the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate, (b) any right, title or interest in any Property, (c) any Notes, or (d)
a beneficial interest in Lessor.

                                 ARTICLE XXVIII

         28.1     INCORPORATION OF COVENANTS.
                  --------------------------

                  Reference is made to the Parent Credit Agreement and the
representations and warranties of Lessee contained in Article VI of the Parent
Credit Agreement (hereinafter referred to as the "Incorporated Representations
and Warranties") and the covenants contained in Articles VII and VIII of the
Parent Credit Agreement (hereinafter referred to as the "Incorporated
Covenants"). Lessee agrees with Lessor that the Incorporated Representations and
Warranties and the Incorporated Covenants (and all other relevant provisions of
the Parent Credit Agreement related thereto, including without limitation the
defined terms contained in Section 1.1 thereof which are used in the
Incorporated Representations and Warranties and the Incorporated Covenants,
hereinafter referred to as the "Additional Incorporated Terms") are hereby
incorporated by reference into this Lease to the same extent and with the same
effect as if set forth fully herein and shall inure to the benefit of Lessor,

                                       39
<PAGE>

without giving effect to any waiver, amendment, modification or replacement of
the Parent Credit Agreement or any term or provision of the Incorporated
Representations and Warranties or the Incorporated Covenants occurring
subsequent to the date of this Lease, except to the extent otherwise
specifically provided in the following provisions of this paragraph. In the
event a waiver is granted under the Parent Credit Agreement or an amendment or
modification is executed with respect to the Parent Credit Agreement, and such
waiver, amendment and/or modification affects the Incorporated Representations
and Warranties, the Incorporated Covenants or the Additional Incorporated Terms,
then such waiver, amendment or modification shall be effective with respect to
the Incorporated Representations and Warranties, the Incorporated Covenants and
the Additional Incorporated Terms as incorporated by reference into this Lease
only if consented to in writing by the Agent (acting upon the direction of the
Majority Secured Parties). In the event of any replacement of the Parent Credit
Agreement with a similar credit facility (the "New Facility") the
representations and warranties, covenants and additional terms contained in the
New Facility which correspond to the representations and warranties, covenants
contained in Article VI and Articles VII and VIII, respectively, and such
additional terms (each of the foregoing contained in the Parent Credit
Agreement) shall become the Incorporated Representations and Warranties, the
Incorporated Covenants and the Additional Incorporated Terms only if consented
to in writing by the Agent (acting upon the direction of the Majority Secured
Parties) and, if such consent is not granted or if the Parent Credit Agreement
is terminated and not replaced, then the representations and warranties and
covenants contained in Article VI and Articles VII and VIII, respectively, and
such additional terms (each of the foregoing contained in the Parent Credit
Agreement (together with any modifications or amendments approved in accordance
with this paragraph)) shall continue to be the Incorporated Representations and
Warranties, the Incorporated Covenants and the Additional Incorporated Terms
hereunder.

                                  ARTICLE XXIX

         29.1     NOTICES.
                  -------

                  All notices required or permitted to be given under this Lease
shall be in writing and delivered as provided in the Participation Agreement.

                                   ARTICLE XXX

         30.1     MISCELLANEOUS.
                  -------------

                  Anything contained in this Lease to the contrary
notwithstanding, all claims against and liabilities of Lessee or Lessor arising
from events commencing prior to the expiration or earlier termination of this
Lease shall survive such expiration or earlier termination. If any provision of
this Lease shall be held to be unenforceable in any jurisdiction, such
unenforceability shall not affect the enforceability of any other provision of
this Lease and such jurisdiction or of such provision or of any other provision
hereof in any other jurisdiction.

                                       40
<PAGE>

         30.2     AMENDMENTS AND MODIFICATIONS.
                  ----------------------------

                  Neither this Lease nor any Lease Supplement may be amended,
waived, discharged or terminated except in accordance with the provisions of
Section 12.4 of the Participation Agreement.

         30.3     SUCCESSORS AND ASSIGNS.
                  ----------------------

                  All the terms and provisions of this Lease shall inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

         30.4     HEADINGS AND TABLE OF CONTENTS.
                  ------------------------------

                  The headings and table of contents in this Lease are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

         30.5     COUNTERPARTS.
                  ------------

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

         30.6     GOVERNING LAW.
                  -------------

                  THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NORTH CAROLINA
(WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW),
EXCEPT TO THE EXTENT THE LAWS OF THE STATE WHERE A PARTICULAR PROPERTY IS
LOCATED ARE REQUIRED TO APPLY.

         30.7     CALCULATION OF RENT.
                  -------------------

                  All calculation of Rent payable hereunder shall be computed
based on the actual days elapsed over a year of three hundred sixty (360) days
or, to the extent such Rent is based on the Prime Lending Rate, the actual days
elapsed over a year of three hundred sixty-five (365) (or three hundred
sixty-six (366), as applicable) days.

         30.8     MEMORANDA OF LEASE AND LEASE SUPPLEMENTS.
                  ----------------------------------------

                  This Lease shall not be recorded; provided, Lessor and Lessee
shall promptly record (a) a memorandum of this Lease and the applicable Lease
Supplement (in substantially the form of Exhibit B attached hereto) or a short
form lease (in form and substance reasonably satisfactory to Lessor) regarding
each Property promptly after the acquisition thereof in the local filing office
with respect thereto, in all cases at Lessee's cost and expense, and as required
under applicable law to sufficiently evidence this Lease and any such Lease
Supplement in the applicable real estate filing records.

                                       41
<PAGE>

         30.9     ALLOCATIONS BETWEEN THE LENDERS AND THE HOLDERS.
                  -----------------------------------------------

                  Notwithstanding any other term or provision of this Lease to
the contrary, the allocations of the proceeds of the Properties and any and all
other Rent and other amounts received hereunder shall be subject to the
inter-creditor provisions between the Lenders and the Holders contained in the
Operative Agreements (or as otherwise agreed among the Lenders and the Holders
from time to time).

         30.10    LIMITATIONS ON RECOURSE.
                  -----------------------

                  Notwithstanding anything contained in this Lease to the
contrary, except for Lessor Liens arising by, through or under the Trust Company
which shall be the responsibility of the Trust Company and Lessor Liens arising
by, through or under the Lessor which shall be the responsibility of the Lessor,
Lessee agrees to look solely to Lessor's estate and interest in the Properties
(and in no circumstance to the Agent, the Lenders, the Holders or otherwise to
Lessor) for the collection of any judgment requiring the payment of money by
Lessor in the event of liability by Lessor, and no other property or assets of
Lessor or any shareholder, owner or partner (direct or indirect) in or of
Lessor, or any director, officer, employee, beneficiary, Affiliate of any of the
foregoing shall be subject to levy, execution or other enforcement procedure for
the satisfaction of the remedies of Lessee under or with respect to this Lease,
the relationship of Lessor and Lessee hereunder or Lessee's use of the
Properties or any other liability of Lessor to Lessee. Nothing in this Section
shall be interpreted so as to limit the terms of Sections 6.1 or 6.2 or the
provisions of Section 12.9 of the Participation Agreement.

         30.11    WAIVERS OF JURY TRIAL.
                  ---------------------

                  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY, TO
         THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW, WAIVE TRIAL BY JURY IN
         ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS LEASE AND FOR ANY
         COUNTERCLAIM THEREIN.

         30.12    EXERCISE OF LESSOR RIGHTS.
                  -------------------------

                  Lessee hereby acknowledges and agrees that the rights and
powers of Lessor under this Lease have been assigned to the Agent pursuant to
the terms of the Security Agreement and the other Operative Agreements. Lessor
and Lessee hereby acknowledge and agree that (a) the Agent shall, in its
discretion, direct and/or act on behalf of Lessor pursuant to the provisions of
Sections 8.2(h) and 8.6 of the Participation Agreement, (b) all notices to be
given to Lessor shall be given to the Agent and (c) all notices to be given by
Lessor may be given by the Agent, at its election.

                                       42
<PAGE>

         30.13    SUBMISSION TO JURISDICTION; VENUE; ARBITRATION.
                  ----------------------------------------------

                  THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO
SUBMISSION TO JURISDICTION, VENUE AND ARBITRATION ARE HEREBY INCORPORATED BY
REFERENCE HEREIN, MUTATIS MUTANDIS.

         30.14    USURY SAVINGS PROVISION.
                  -----------------------

                  IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND
CONTRACT IN STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN
EFFECT. TO THE EXTENT ANY RENT OR PAYMENTS HEREUNDER ARE HEREINAFTER
CHARACTERIZED BY ANY COURT OF COMPETENT JURISDICTION AS THE REPAYMENT OF
PRINCIPAL AND INTEREST THEREON, THIS SECTION 30.14 SHALL APPLY. ANY SUCH RENT OR
PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE REFERRED TO HEREIN AS "INTEREST."
ALL AGREEMENTS AMONG THE PARTIES HERETO ARE HEREBY LIMITED BY THE PROVISIONS OF
THIS PARAGRAPH WHICH SHALL OVERRIDE AND CONTROL ALL SUCH AGREEMENTS, WHETHER NOW
EXISTING OR HEREAFTER ARISING AND WHETHER WRITTEN OR ORAL. IN NO WAY, NOR IN ANY
EVENT OR CONTINGENCY (INCLUDING WITHOUT LIMITATION PREPAYMENT OR ACCELERATION OF
THE MATURITY OF ANY OBLIGATION), SHALL ANY INTEREST TAKEN, RESERVED, CONTRACTED
FOR, CHARGED, OR RECEIVED UNDER THIS LEASE OR OTHERWISE, EXCEED THE MAXIMUM
NONUSURIOUS AMOUNT PERMISSIBLE UNDER APPLICABLE LAW. IF, FROM ANY POSSIBLE
CONSTRUCTION OF ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT OR
AGREEMENT, INTEREST WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM
NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF
THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE
AUTOMATICALLY REDUCED TO THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER
APPLICABLE LAW, WITHOUT THE NECESSITY OF EXECUTION OF ANY AMENDMENT OR NEW
DOCUMENT OR AGREEMENT. IF LESSOR SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS
CHARACTERIZED AS INTEREST WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR
UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF
THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN
EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE
COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST,
OR REFUNDED TO LESSEE OR ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT SUCH
AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS DEEMED
TO BE PRINCIPAL. THE RIGHT TO DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF
THE OPERATIVE AGREEMENTS DOES NOT INCLUDE THE RIGHT TO RECEIVE ANY INTEREST
WHICH HAS NOT OTHERWISE ACCRUED ON THE DATE OF SUCH DEMAND, AND LESSOR DOES NOT

                                       43
<PAGE>

INTEND TO CHARGE OR RECEIVE ANY UNEARNED INTEREST IN THE EVENT OF SUCH DEMAND.
ALL INTEREST PAID OR AGREED TO BE PAID TO LESSOR SHALL, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, BE AMORTIZED, PRORATED, ALLOCATED, AND SPREAD THROUGHOUT THE
FULL STATED TERM (INCLUDING WITHOUT LIMITATION ANY RENEWAL OR EXTENSION) OF THIS
LEASE SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF SUCH PAYMENTS DOES NOT EXCEED
THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY APPLICABLE LAW.

         30.15    LESSOR CERTIFICATION.
                  --------------------

         It is Lessee's policy not to contract with "Ineligible Persons". An
"Ineligible Person" is defined as any individual or entity who: (a) is currently
excluded, debarred or otherwise ineligible to participate in the Federal
healthcare programs or in the Federal procurement or non-procurement programs;
and (b) has been convicted of a criminal offense related to the provision of
healthcare items or services, but has not yet been excluded, debarred or
otherwise declared ineligible. In connection therewith, Lessee is required to
verify that its contractors are not listed on the General Services
Administration's List of Parties Excluded from Federal Programs and the list of
Excluded Individuals/Entities maintained by the Office of Inspector General of
the Department of Health and Human Services. Lessor hereby certifies that it (a)
has not received written notice that it is currently excluded, debarred or
otherwise ineligible to participate in the Federal healthcare programs or in the
Federal procurement or non-procurement programs; and (b) has not been convicted
of a criminal offense related to the provision of healthcare items or services.

                            [signature pages follow]

                                       44
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Lease to be duly
executed and delivered as of the date first above written.

                                           STATE STREET BANK AND TRUST COMPANY
                                           OF CONNECTICUT, NATIONAL ASSOCIATION,
                                           not individually, but solely as Owner
                                           Trustee for Digital Hospital Trust
                                           2001-1, as Lessor

                                           By: /s/ Deborah A. Ibrahim
                                               ---------------------------------
                                           Name: /s/ Deborah A. Ibrahim
                                                 -------------------------------
                                           Title: Assistant Secretary
                                                  ------------------------------

                           [signature pages continue]

<PAGE>

                                           HEALTHSOUTH MEDICAL CENTER, INC., as
                                           Lessee

                                           By: /s/ Malcolm E. McVay
                                               ---------------------------------
                                           Name: Malcolm E. McVay
                                                 -------------------------------
                                           Title: Vice President and Treasurer
                                                  ------------------------------
<PAGE>

Receipt of this original
counterpart of the foregoing
Lease is hereby acknowledged
as the date hereof

FIRST UNION NATIONAL BANK,
as the Agent

By: /s/ Evander S. Jones. Jr.
    ---------------------------------------
Name: Evander S. Jones. Jr.
      -------------------------------------
Title: Vice President
       ------------------------------------

                              [signature pages end]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]