Common use of CONDITIONS PRECEDENT TO LOANS AND LETTERS Clause in Contracts

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 Section 3.1. Conditions to Effectiveness 67 Section 3.2. Conditions to Each Credit Event 70 Section 3.3. Delivery of Documents 70 Section 3.4. Effect on Existing Credit Facility 70 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 Section 4.1. Existence; Power 71 Section 4.2. Organizational Power; Authorization 71 Section 4.3. Governmental Approvals; No Conflicts 71 Section 4.4. Financial Statements 71 Section 4.5. Litigation and Environmental Matters 72 Section 4.6. Compliance with Laws and Agreements 72 Section 4.7. Investment Company Act. 72 Section 4.8. Taxes 72 Section 4.9. Use of Proceeds; Margin Regulations 72 Section 4.10. ERISA 73 Section 4.11. Ownership of Property; Insurance 73 Section 4.12. Disclosure 74 Section 4.13. Labor Relations 74 Section 4.14. Subsidiaries 74 Section 4.15. Solvency 74 Section 4.16. [Reserved] 74 Section 4.17. Collateral Documents 74 Section 4.18. [Reserved] 75 Section 4.19. Healthcare Matters 75 Section 4.20. Sanctions 78 Section 4.21. Anti-Corruption Laws 78 Section 4.22. Patriot Act 78 ARTICLE V AFFIRMATIVE COVENANTS 78 Section 5.1. Financial Statements and Other Information 78 Section 5.2. Notices of Material Events 80 Section 5.3. Existence; Conduct of Business 82 Section 5.4. Compliance with Laws 82 Section 5.5. Payment of Obligations 83 Section 5.6. Books and Records 83 Section 5.7. Visitation and Inspection 83 Section 5.8. Maintenance of Properties; Insurance 83 Section 5.9. Use of Proceeds; Margin Regulations 84 Section 5.10. [Reserved] 84 Section 5.11. Cash Management 84 Section 5.12. Additional Subsidiaries and Collateral 85 Section 5.13. Mortgages; Collateral Access Agreements 86 Section 5.14. Further Assurances 87 Section 5.15. Health Care Matters 87 Section 5.16. Post-Closing Matters 88 Section 5.17. [Reserved] 88 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 Section 5.19. Anti-Corruption Laws 90 ARTICLE VI FINANCIAL COVENANTS 90 Section 6.1. Leverage Ratio 90 Section 6.2. Interest/Rent Coverage Ratio 90 ARTICLE VII NEGATIVE COVENANTS 91 Section 7.1. Indebtedness and Preferred Equity 91 Section 7.2. Liens 93 Section 7.3. Fundamental Changes 94 Section 7.4. Investments, Loans 95 Section 7.5. Restricted Payments 97 Section 7.6. Sale of Assets 98 Section 7.7 Transactions with Affiliates 99 Section 7.8. Restrictive Agreements 100 Section 7.9. Sale and Leaseback Transactions 100 Section 7.10. Hedging Transactions 101 Section 7.11. Amendment to Material Documents 101 Section 7.12. PropCo Master Leases 101 Section 7.13. Accounting Changes 101 Section 7.14. Government Regulation 101 Section 7.15. Sanctions 102 Section 7.16. Anti-Corruption Laws 102 ARTICLE VIII EVENTS OF DEFAULT 102 Section 8.1. Events of Default 102 Section 8.2. Application of Proceeds from Collateral 105 ARTICLE IX THE ADMINISTRATIVE AGENT 106 Section 9.1. Appointment of the Administrative Agent 106 Section 9.2. Nature of Duties of the Administrative Agent 107 Section 9.3. Lack of Reliance on the Administrative Agent 107 Section 9.4. Certain Rights of the Administrative Agent 108 Section 9.5. Reliance by the Administrative Agent 108 Section 9.6. The Administrative Agent in its Individual Capacity 108 Section 9.7. Successor Administrative Agent 108 Section 9.8. Withholding Tax 109 Section 9.9. The Administrative Agent May File Proofs of Claim 109 Section 9.10. Authorization to Execute Other Loan Documents 110 Section 9.11. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation Agents; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 ARTICLE X MISCELLANEOUS 111 Section 10.1. Notices 111 Section 10.2. Waiver; Amendments 114 Section 10.3. Expenses; Indemnification 116 Section 10.4. Successors and Assigns 117 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process 121 Section 10.6. WAIVER OF JURY TRIAL 122 Section 10.7. Right of Set-off 122 Section 10.8. Counterparts; Integration 122 Section 10.9. Survival 123 Section 10.10. Severability 123 Section 10.11. Confidentiality 123 Section 10.12. Interest Rate Limitation 124 Section 10.13. Waiver of Effect of Corporate Seal 124 Section 10.14. Patriot Act 124 Section 10.15. No Advisory or Fiduciary Responsibility 124 Section 10.16. Location of Closing 125 Section 10.17. Releases of Collateral 125 Section 10.18. Amendment and Restatement 126 Schedules Schedule I Commitment Amounts Schedule II Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 Existing Indebtedness Schedule 7.2 Existing Liens Schedule 7.4 Existing Investments Schedule 7.8 Existing Leases with Restrictive Agreements Exhibits Exhibit A Form of Assignment and Acceptance Exhibit B Form of Amended and Restated Guaranty and Security Agreement Exhibit 2.3 Form of Notice of Revolving Borrowing Exhibit 2.4 Form of Notice of Swingline Borrowing Exhibit 2.7 Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii) Form of Secretary’s Certificate Exhibit 3.1(b)(iv) Form of Officer’s Certificate Exhibit 5.1(c) Form of Compliance Certificate AMENDED AND RESTATED CREDIT AGREEMENT THIS AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5, 2016, by and among THE ENSIGN GROUP, INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”).

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 58 Section 3.1. Conditions to Effectiveness 67 To Initial Borrowing 58 Section 3.2. Conditions to Each Credit Event 70 61 Section 3.3. Delivery of Documents 70 Section 3.4. Effect on Existing Credit Facility 70 61 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 61 Section 4.1. Existence; Power 71 61 Section 4.2. Organizational Power; Authorization 71 62 Section 4.3. Governmental Approvals; No Conflicts 71 62 Section 4.4. Financial Statements 71 62 Section 4.5. Litigation and Environmental Matters 72 62 Section 4.6. Compliance with Laws and Agreements 72 63 Section 4.7. Investment Company Act, Etc. 72 63 Section 4.8. Taxes 72 Taxes; Fees 63 Section 4.9. Use of Proceeds; Margin Regulations 72 63 Section 4.10. ERISA 73 63 Section 4.11. Ownership of Property; Insurance 73 Property 64 Section 4.12. Disclosure 74 64 Section 4.13. Labor Relations 74 64 Section 4.14. Subsidiaries 74 64 Section 4.15. Solvency 74 Insolvency 65 Section 4.16. [Reserved] 74 OFAC 65 Section 4.17. Collateral Documents 74 Compliance with Patriot Act and Other Laws 65 Section 4.18. [Reserved] 75 Security Documents 65 Section 4.19. Healthcare Matters 75 Section 4.20. Sanctions 78 Section 4.21. Anti-Corruption Laws 78 Section 4.22. Patriot Act 78 Existing Indebtedness 66 ARTICLE V AFFIRMATIVE COVENANTS 78 66 Section 5.1. Financial Statements and Other Information 78 66 Section 5.2. Notices of Material Events 80 67 Section 5.3. Existence; Conduct of Business 82 68 Section 5.4. Compliance with Laws 82 Laws, Etc. 68 Section 5.5. Payment of Obligations 83 68 Section 5.6. Books and Records 83 68 Section 5.7. Visitation and Inspection 83 Visitation, Inspection, Etc. 68 Section 5.8. Maintenance of Properties; Insurance 83 69 Section 5.9. Use of Proceeds; Margin Regulations 84 Proceeds and Letters of Credit 69 Section 5.10. [ReservedIntentionally Omitted] 84 69 Section 5.11. Cash Management 84 Additional Subsidiaries 69 Section 5.12. Additional Subsidiaries and Collateral 85 Further Assurances 71 Section 5.13. Mortgages; Collateral Access Agreements 86 Section 5.14. Further Assurances 87 Section 5.15. Health Care Matters 87 Section 5.16. Post-Post Closing Matters 88 Section 5.17. [Reserved] 88 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 Section 5.19. Anti-Corruption Laws 90 Covenant 71 Page ARTICLE VI FINANCIAL COVENANTS 90 71 Section 6.1. Leverage Ratio 90 71 Section 6.2. Interest/Rent Interest Coverage Ratio 90 72 Section 6.3. Consolidated Net Worth 72 Section 6.4. Collateral Asset Value 72 ARTICLE VII NEGATIVE COVENANTS 91 72 Section 7.1. Indebtedness and Preferred Equity 91 Indebtedness. 72 Section 7.2. Liens 93 Negative Pledge 73 Section 7.3. Fundamental Changes 94 73 Section 7.4. Loans and Other Investments, Loans 95 Etc. 74 Section 7.5. Restricted Payments 97 75 Section 7.6. Sale of Assets 98 75 Section 7.7 7.7. Transactions with Affiliates 99 75 Section 7.8. Restrictive Agreements 100 75 Section 7.9. Sale and Leaseback Hedging Transactions 100 76 Section 7.10. Hedging Transactions 101 Section 7.11. Amendment to Material Documents 101 76 Section 7.12. PropCo Master Leases 101 Section 7.137.11. Accounting Changes 101 Section 7.14. Government Regulation 101 Section 7.15. Sanctions 102 Section 7.16. Anti-Corruption Laws 102 76 ARTICLE VIII EVENTS OF DEFAULT 102 76 Section 8.1. Events of Default 102 76 Section 8.2. Application of Proceeds from Collateral 105 79 ARTICLE IX THE ADMINISTRATIVE AGENT 106 79 Section 9.1. Appointment of the Administrative Agent 106 79 Section 9.2. Nature of Duties of the Administrative Agent 107 80 Section 9.3. Lack of Reliance on the Administrative Agent 107 80 Section 9.4. Certain Rights of the Administrative Agent 108 81 Section 9.5. Reliance by the Administrative Agent 108 81 Section 9.6. The Administrative Agent in its Individual Capacity 108 81 Section 9.7. Successor Administrative Agent 108 81 Section 9.8. Withholding Tax 109 Section 9.9. The Administrative Agent May File Proofs of Claim 109 Section 9.10. Authorization to Execute Other other Loan Documents 110 82 Section 9.119.9. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation AgentsAgent; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 82 ARTICLE X MISCELLANEOUS 111 82 Section 10.1. Notices 111 82 Section 10.2. Waiver; Amendments 114 84 Page Section 10.3. Expenses; Indemnification 116 86 Section 10.4. Successors and Assigns 117 88 Section 10.5. Governing LawGOVERNING LAW; JurisdictionJURISDICTION; Consent to Service of Process 121 CONSENT TO SERVICE OF PROCESS 91 Section 10.6. WAIVER OF JURY TRIAL 122 92 Section 10.7. Right of Set-off 122 Setoff 92 Section 10.8. Counterparts; Integration 122 93 Section 10.9. Survival 123 93 Section 10.10. Severability 123 93 Section 10.11. Confidentiality 123 94 Section 10.12. Interest Rate Limitation 124 94 Section 10.13. Waiver of Effect of Corporate Seal 124 94 Section 10.14. Patriot Act 124 94 Section 10.15. No Advisory or Fiduciary Responsibility 124 Officer’s Certificates 95 Section 10.16. Location Effect of Closing 125 Section 10.17. Releases Inclusion of Collateral 125 Section 10.18. Amendment and Restatement 126 Exceptions 95 Schedules Schedule I — Applicable Margin and Applicable Percentage Schedule II — Commitment Amounts Schedule II 2.23 — Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 — Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 — Existing Indebtedness Schedule 7.2 — Existing Liens Schedule 7.4 — Existing Investments Schedule 7.8 Existing Leases with Restrictive Agreements Exhibits Exhibit A — Form of Revolving Credit Note Exhibit B — Form of Swingline Note Exhibit C — Form of Assignment and Acceptance Exhibit B D — Form of Amended and Restated Subsidiary Guaranty and Security Agreement Exhibit 2.3 — Form of Notice of Revolving Borrowing Exhibit 2.4 — Form of Notice of Swingline Borrowing Exhibit 2.7 2.8 — Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii) Form of Secretary’s Certificate Exhibit 3.1(b)(iv) Form of Officer’s Certificate Exhibit 5.1(c) — Form of Compliance Certificate AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT THIS AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5August 3, 20162006, by and among THE ENSIGN GROUP, BXXXXXX GROUP INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and ), SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an the “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”) JPMORGAN CHASE BANK, NATIONAL ASSOCIATION as Syndication Agent, and WXXXX FARGO BANK, NATIONAL ASSOCIATION, as Documentation Agent (the “Documentation Agent”).

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 69 Section 3.1. Conditions to Effectiveness 67 69 Section 3.2. Conditions to Each Credit Event 70 72 Section 3.3. Delivery of Documents 70 72 Section 3.4. Effect on Existing Credit Facility 70 73 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 69 Section 4.1. Existence; Power 71 69 Section 4.2. Organizational Power; Authorization 71 Conditions to Each Credit Event 72 Section 4.3. Governmental Approvals; No Conflicts 71 Delivery of Documents 72 Section 4.4. Financial Statements 71 73 Section 4.5. Litigation and Environmental Matters 72 74 Section 4.6. Compliance with Laws and Agreements 72 74 Section 4.7. Investment Company Act. 72 Act 74 Section 4.8. Taxes 72 74 Section 4.9. Use of Proceeds; Margin Regulations 72 75 Section 4.10. ERISA 73 75 Section 4.11. Ownership of Property; Insurance 73 76 Section 4.12. Disclosure 74 76 Section 4.13. Labor Relations 74 76 Section 4.14. Subsidiaries 74 77 Section 4.15. Solvency 74 77 Section 4.16. [Reserved] 74 77 Section 4.17. Collateral Documents 74 77 Section 4.18. [Reserved] 75 77 Section 4.19. Healthcare Matters 75 77 Section 4.20. Sanctions 78 80 Section 4.21. Anti-Corruption Laws 78 80 Section 4.22. Patriot Act 78 80 ARTICLE V AFFIRMATIVE COVENANTS 78 81 Section 5.1. Financial Statements and Other Information 78 81 Section 5.2. Notices of Material Events 80 82 US-DOCS\51545218.9 Section 5.3. Existence; Conduct of Business 82 85 Section 5.4. Compliance with Laws 82 85 Section 5.5. Payment of Obligations 83 85 Section 5.6. Books and Records 83 85 Section 5.7. Visitation and Inspection 83 85 Section 5.8. Maintenance of Properties; Insurance 83 86 Section 5.9. Use of Proceeds; Margin Regulations 84 86 Section 5.10. [Reserved] 84 86 Section 5.11. Cash Management 84 86 Section 5.12. Additional Subsidiaries and Collateral 85 87 Section 5.13. Mortgages; Collateral Access Agreements 86 89 Section 5.14. Further Assurances 87 89 Section 5.15. Health Care Matters 87 90 Section 5.16. Post-Closing Matters 88 90 Section 5.17. [Reserved] 88 91 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 91 Section 5.19. Anti-Corruption Laws 90 92 ARTICLE VI FINANCIAL COVENANTS 90 92 Section 6.1. Leverage Ratio 90 93 Section 6.2. Interest/Rent Coverage Ratio 90 93 ARTICLE VII NEGATIVE COVENANTS 91 93 Section 7.1. Indebtedness and Preferred Equity 91 93 Section 7.2. Liens 93 95 Section 7.3. Fundamental Changes 94 96 Section 7.4. Investments, Loans 95 97 Section 7.5. Restricted Payments 97 99 Section 7.6. Sale of Assets 98 101 Section 7.7 7.7. Transactions with Affiliates 99 102 Section 7.8. Restrictive Agreements 100 102 Section 7.9. Sale and Leaseback Transactions 100 103 Section 7.10. Hedging Transactions 101 103 Section 7.11. Amendment to Material Documents 101 103 Section 7.12. PropCo Master Leases 101 103 Section 7.13. Accounting Changes 101 104 iii US-DOCS\51545218.9 Section 7.14. Government Regulation 101 104 Section 7.15. Sanctions 102 104 Section 7.16. Anti-Corruption Laws 102 104 ARTICLE VIII EVENTS OF DEFAULT 102 Section 8.1. Events of Default 102 Section 8.2. Application of Proceeds from Collateral 105 ARTICLE IX THE ADMINISTRATIVE AGENT 106 Section 9.1. Appointment of the Administrative Agent 106 Section 9.2. Nature of Duties of the Administrative Agent 107 Section 9.3. Lack of Reliance on the Administrative Agent 107 Section 9.4. Certain Rights of the Administrative Agent 108 Section 9.5. Reliance by the Administrative Agent 108 Section 9.6. The Administrative Agent in its Individual Capacity 108 Section 9.7. Successor Administrative Agent 108 Section 9.8. Withholding Tax 109 Section 9.9. The Administrative Agent May File Proofs of Claim 109 Section 9.10. Authorization to Execute Other Loan Documents 110 Section 9.11. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation Agents; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 ARTICLE X MISCELLANEOUS 111 Section 10.1. Notices 111 Section 10.2. Waiver; Amendments 114 Section 10.3. Expenses; Indemnification 116 Section 10.4. Successors and Assigns 117 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process 121 Section 10.6. WAIVER OF JURY TRIAL 122 Section 10.7. Right of Set-off 122 Section 10.8. Counterparts; Integration 122 Section 10.9. Survival 123 Section 10.10. Severability 123 Section 10.11. Confidentiality 123 Section 10.12. Interest Rate Limitation 124 Section 10.13. Waiver of Effect of Corporate Seal 124 Section 10.14. Patriot Act 124 Section 10.15. No Advisory or Fiduciary Responsibility 124 Section 10.16. Location of Closing 125 Section 10.17. Releases of Collateral 125 Section 10.18. Amendment and Restatement 126 Schedules Schedule I Commitment Amounts Schedule II Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 Existing Indebtedness Schedule 7.2 Existing Liens Schedule 7.4 Existing Investments Schedule 7.8 Existing Leases with Restrictive Agreements Exhibits Exhibit A Form of Assignment and Acceptance Exhibit B Form of Amended and Restated Guaranty and Security Agreement Exhibit 2.3 Form of Notice of Revolving Borrowing Exhibit 2.4 Form of Notice of Swingline Borrowing Exhibit 2.7 Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii) Form of Secretary’s Certificate Exhibit 3.1(b)(iv) Form of Officer’s Certificate Exhibit 5.1(c) Form of Compliance Certificate AMENDED AND RESTATED CREDIT AGREEMENT THIS AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5, 2016, by and among THE ENSIGN GROUP, INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”).VIII

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 48 Section 3.1. Conditions to To Effectiveness 67 48 Section 3.2. Conditions to Each Credit Event 70 50 Section 3.3. Delivery of Documents 70 Section 3.4. Effect on Existing Credit Facility 70 51 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 51 Section 4.1. Existence; Power 71 51 Section 4.2. Organizational Power; Authorization 71 52 Section 4.3. Governmental Approvals; No Conflicts 71 52 Section 4.4. Financial Statements 71 52 Section 4.5. Litigation and Environmental Matters 72 52 Section 4.6. Compliance with Laws and Agreements 72 53 Section 4.7. Investment Company Act, Etc. 72 53 Section 4.8. Taxes 72 53 Section 4.9. Use of Proceeds; Margin Regulations 72 53 Section 4.10. ERISA 73 53 Section 4.11. Ownership of Property; Insurance 73 Disclosure 53 Section 4.12. Disclosure 74 Subsidiaries 54 Section 4.13. Labor Relations 74 Solvency 54 Section 4.14. Subsidiaries 74 OFAC 54 Section 4.15. Solvency 74 Section 4.16. [Reserved] 74 Section 4.17. Collateral Documents 74 Section 4.18. [Reserved] 75 Section 4.19. Healthcare Matters 75 Section 4.20. Sanctions 78 Section 4.21. Anti-Corruption Laws 78 Section 4.22. Patriot Act 78 54 ARTICLE V AFFIRMATIVE COVENANTS 78 54 Section 5.1. Financial Statements and Other Information 78 54 Section 5.2. Notices of Material Events 80 56 Section 5.3. Existence; Conduct of Business 82 56 Section 5.4. Compliance with Laws 82 Laws, Etc. 56 Section 5.5. Payment of Obligations 83 57 Section 5.6. Books and Records 83 57 Section 5.7. Visitation and Inspection 83 Visitation, Inspection, Etc. 57 Section 5.8. Maintenance of Properties; Insurance 83 57 Section 5.9. Use of Proceeds; Margin Regulations 84 Proceeds and Letters of Credit 57 Section 5.10. [Reserved] 84 Section 5.11. Cash Management 84 Section 5.12. Additional Subsidiaries and Collateral 85 Section 5.13. Mortgages; Collateral Access Agreements 86 Section 5.14. Further Assurances 87 Section 5.15. Health Care Matters 87 Section 5.16. Post-Closing Matters 88 Section 5.17. [Reserved] 88 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 Section 5.19. Anti-Corruption Laws 90 57 ARTICLE VI FINANCIAL COVENANTS 90 58 Section 6.1. Leverage Ratio 90 58 Section 6.2. Interest/Rent Interest Coverage Ratio 90 58 ARTICLE VII NEGATIVE COVENANTS 91 58 Section 7.1. Indebtedness and Preferred Equity 91 58 Section 7.2. Liens 93 Negative Pledge 59 Section 7.3. Fundamental Changes 94 59 Section 7.4. Investments, Loans 95 Loans, Etc. 60 Section 7.5. Restricted Payments 97 60 Section 7.6. Sale of Assets 98 61 Section 7.7 7.7. Transactions with Affiliates 99 61 Section 7.8. Restrictive Agreements 100 62 Section 7.9. Sale and Leaseback Transactions 100 Accounting Changes 62 Section 7.10. Hedging Transactions 101 Section 7.11. Amendment to Material Documents 101 Section 7.12. PropCo Master Leases 101 Section 7.13. Accounting Changes 101 Section 7.14. Government Regulation 101 Section 7.15. Sanctions 102 Section 7.16. Anti-Corruption Laws 102 62 ARTICLE VIII EVENTS OF DEFAULT 102 63 Section 8.1. Events of Default 102 Section 8.2. Application of Proceeds from Collateral 105 63 ARTICLE IX THE ADMINISTRATIVE AGENT 106 65 Section 9.1. Appointment of the Administrative Agent 106 65 Section 9.2. Nature of Duties of the Administrative Agent 107 65 Section 9.3. Lack of Reliance on the Administrative Agent 107 66 Section 9.4. Certain Rights of the Administrative Agent 108 66 Section 9.5. Reliance by the Administrative Agent 108 66 Section 9.6. The Administrative Agent in its Individual Capacity 108 66 Section 9.7. Successor Administrative Agent 108 67 Section 9.8. Withholding Tax 109 67 Section 9.9. The Administrative Agent May File Proofs of Claim 109 68 Section 9.10. Authorization to Execute Other other Loan Documents 110 68 Section 9.11. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation Agents; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 68 ARTICLE X MISCELLANEOUS 111 69 Section 10.1. Notices 111 69 Section 10.2. Waiver; Amendments 114 72 Section 10.3. Expenses; Indemnification 116 73 Section 10.4. Successors and Assigns 117 74 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process 121 77 Section 10.6. WAIVER OF JURY TRIAL 122 78 Section 10.7. Right of Set-off 122 Setoff 78 Section 10.8. Counterparts; Integration 122 78 Section 10.9. Survival 123 79 Section 10.10. Severability 123 79 Section 10.11. Confidentiality 123 79 Section 10.12. Interest Rate Limitation 124 80 Section 10.13. Waiver of Effect of Corporate Seal 124 Amendment and Restatement 80 Section 10.14. Patriot Act 124 80 Section 10.15. No Advisory or Fiduciary Responsibility 124 80 Section 10.16. Location of Closing 125 Section 10.17. Releases of Collateral 125 Section 10.18. Amendment and Restatement 126 81 Schedules Schedule I - Applicable Margin and Applicable Percentage Schedule II - Commitment Amounts Schedule II 2.22 - Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan 4.5 - Environmental Matters Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 4.12 - Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 Existing - Outstanding Indebtedness Schedule 7.2 - Existing Liens Schedule 7.4 - Existing Investments Schedule 7.6 - Sale Leaseback Transactions Schedule 7.8 Existing Leases with Restrictive Agreements - Restrictions on Subsidiary Indebtedness Exhibits Exhibit A - Form of Assignment and Acceptance Exhibit B - Form of Amended and Restated Subsidiary Guaranty and Security Agreement Exhibit 2.3 - Form of Notice of Revolving Borrowing Exhibit 2.4 - Form of Notice of Swingline Borrowing Exhibit 2.7 - Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii3.1(b)(iv) - Form of Secretary’s Certificate Exhibit 3.1(b)(iv3.1(b)(vii) - Form of Officer’s Certificate Exhibit 5.1(c) - Form of Compliance Certificate AMENDED AND RESTATED CREDIT AGREEMENT THIS AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5, 2016, by and among THE ENSIGN GROUP, INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”).Certificate

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 48 Section 3.1. Conditions to To Effectiveness 67 48 Section 3.2. Conditions to Each Credit Event 70 50 Page Section 3.3. Delivery of Documents 70 Section 3.4. Effect on Existing Credit Facility 70 51 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 51 Section 4.1. Existence; Power 71 51 Section 4.2. Organizational Power; Authorization 71 51 Section 4.3. Governmental Approvals; No Conflicts 71 51 Section 4.4. Financial Statements 71 52 Section 4.5. Litigation and Environmental Matters 72 52 Section 4.6. Compliance with Laws and Agreements 72 52 Section 4.7. Investment Company Act, Etc. 72 52 Section 4.8. Taxes 72 53 Section 4.9. Use of Proceeds; Margin Regulations 72 53 Section 4.10. ERISA 73 53 Section 4.11. Ownership of Property; Insurance 73 Disclosure 53 Section 4.12. Disclosure 74 Subsidiaries 53 Section 4.13. Labor Relations 74 Solvency 53 Section 4.14. Subsidiaries 74 OFAC 53 Section 4.15. Solvency 74 Section 4.16. [Reserved] 74 Section 4.17. Collateral Documents 74 Section 4.18. [Reserved] 75 Section 4.19. Healthcare Matters 75 Section 4.20. Sanctions 78 Section 4.21. Anti-Corruption Laws 78 Section 4.22. Patriot Act 78 54 ARTICLE V AFFIRMATIVE COVENANTS 78 54 Section 5.1. Financial Statements and Other Information 78 54 Section 5.2. Notices of Material Events 80 55 Section 5.3. Existence; Conduct of Business 82 56 Section 5.4. Compliance with Laws 82 Laws, Etc. 56 Section 5.5. Payment of Obligations 83 56 Section 5.6. Books and Records 83 56 Section 5.7. Visitation and Inspection 83 Visitation, Inspection, Etc. 56 Section 5.8. Maintenance of Properties; Insurance 83 57 Section 5.9. Use of Proceeds; Margin Regulations 84 Proceeds and Letters of Credit 57 Section 5.10. [Reserved] 84 Section 5.11. Cash Management 84 Section 5.12. Additional Subsidiaries and Collateral 85 Section 5.13. Mortgages; Collateral Access Agreements 86 Section 5.14. Further Assurances 87 Section 5.15. Health Care Matters 87 Section 5.16. Post-Closing Matters 88 Section 5.17. [Reserved] 88 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 Section 5.19. Anti-Corruption Laws 90 57 ARTICLE VI FINANCIAL COVENANTS 90 57 Section 6.1. Leverage Ratio 90 57 Section 6.2. Interest/Rent Interest Coverage Ratio 90 58 ARTICLE VII NEGATIVE COVENANTS 91 58 Section 7.1. Indebtedness and Preferred Equity 91 58 Section 7.2. Liens 93 Negative Pledge 59 Section 7.3. Fundamental Changes 94 59 Page Section 7.4. Investments, Loans 95 Loans, Etc. 59 Section 7.5. Restricted Payments 97 60 Section 7.6. Sale of Assets 98 60 Section 7.7 7.7. Transactions with Affiliates 99 61 Section 7.8. Restrictive Agreements 100 61 Section 7.9. Sale and Leaseback Transactions 100 Accounting Changes 62 Section 7.10. Hedging Transactions 101 Section 7.11. Amendment to Material Documents 101 Section 7.12. PropCo Master Leases 101 Section 7.13. Accounting Changes 101 Section 7.14. Government Regulation 101 Section 7.15. Sanctions 102 Section 7.16. Anti-Corruption Laws 102 62 ARTICLE VIII EVENTS OF DEFAULT 102 62 Section 8.1. Events of Default 102 Section 8.2. Application of Proceeds from Collateral 105 62 ARTICLE IX THE ADMINISTRATIVE AGENT 106 64 Section 9.1. Appointment of the Administrative Agent 106 64 Section 9.2. Nature of Duties of the Administrative Agent 107 65 Section 9.3. Lack of Reliance on the Administrative Agent 107 65 Section 9.4. Certain Rights of the Administrative Agent 108 66 Section 9.5. Reliance by the Administrative Agent 108 66 Section 9.6. The Administrative Agent in its Individual Capacity 108 66 Section 9.7. Successor Administrative Agent 108 66 Section 9.8. Withholding Tax 109 67 Section 9.9. The Administrative Agent May File Proofs of Claim 109 67 Section 9.10. Authorization to Execute Other other Loan Documents 110 68 Section 9.11. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation Agents; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 68 ARTICLE X MISCELLANEOUS 111 68 Section 10.1. Notices 111 68 Section 10.2. Waiver; Amendments 114 71 Section 10.3. Expenses; Indemnification 116 72 Section 10.4. Successors and Assigns 117 73 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process 121 77 Section 10.6. WAIVER OF JURY TRIAL 122 77 Section 10.7. Right of Set-off 122 Setoff 77 Section 10.8. Counterparts; Integration 122 78 Section 10.9. Survival 123 78 Section 10.10. Severability 123 78 Section 10.11. Confidentiality 123 78 Section 10.12. Interest Rate Limitation 124 79 Section 10.13. Waiver of Effect of Corporate Seal 124 Reserved 79 Section 10.14. Patriot Act 124 79 Section 10.15. No Advisory or Fiduciary Responsibility 124 79 Section 10.16. Location of Closing 125 Section 10.17. Releases of Collateral 125 Section 10.18. Amendment and Restatement 126 80 Schedules Schedule I - Applicable Margin and Applicable Percentage Schedule II - Commitment Amounts Schedule II 2.22 - Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan 4.5 - Environmental Matters Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 4.12 - Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 Existing - Outstanding Indebtedness Schedule 7.2 - Existing Liens Schedule 7.4 - Existing Investments Schedule 7.6 - Sale Leaseback Transactions Schedule 7.8 Existing Leases with Restrictive Agreements - Restrictions on Subsidiary Indebtedness Exhibits Exhibit A - Form of Assignment and Acceptance Exhibit B - Form of Amended and Restated Subsidiary Guaranty and Security Agreement Exhibit 2.3 - Form of Notice of Revolving Borrowing Exhibit 2.4 - Form of Notice of Swingline Borrowing Exhibit 2.7 - Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii3.1(b)(iv) - Form of Secretary’s Certificate Exhibit 3.1(b)(iv3.1(b)(vii) - Form of Officer’s Certificate Exhibit 5.1(c) - Form of Compliance Certificate AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT THIS AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5November 19, 20162010, by and among THE ENSIGN GROUP, INC.INTERNATIONAL SPEEDWAY CORPORATION, a Delaware Florida corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and SUNTRUST ), XXXXX FARGO BANK, N.A., in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an the “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”) and SUNTRUST BANK and JPMORGAN CHASE BANK, N.A., as co-syndication agents (the “Co-Syndication Agents”).

CONDITIONS PRECEDENT TO LOANS AND LETTERS. OF CREDIT 67 59 Section 3.1. 3.1 Conditions to To Effectiveness 67 59 Section 3.2. Conditions to 3.2 Each Credit Event 70 62 Section 3.3. 3.3 Delivery of Documents 70 Section 3.462 ARTICLE IV. Effect on Existing Credit Facility 70 ARTICLE IV REPRESENTATIONS AND WARRANTIES 71 63 Section 4.1. 4.1 Existence; Power 71 63 Section 4.2. 4.2 Organizational Power; Authorization 71 63 Section 4.3. 4.3 Governmental and Third Party Approvals; No Conflicts 71 63 Section 4.4. 4.4 Financial Statements 71 63 Section 4.5. 4.5 Litigation and Environmental Matters 72 64 Section 4.6. 4.6 Compliance with Laws and Agreements 72 65 Section 4.7. 4.7 Investment Company Act, Etc. 72 65 Section 4.8. 4.8 Taxes 72 65 Section 4.9. Use of Proceeds; 4.9 Margin Regulations 72 65 Section 4.10. ERISA 73 4.10 Employee Benefit Plans 65 Section 4.11. 4.11 Ownership of Property; Insurance 73 Property 67 Section 4.12. 4.12 Disclosure 74 67 Section 4.13. 4.13 Labor Relations 74 67 Section 4.14. 4.14 Subsidiaries 74 67 Section 4.15. 4.15 Solvency 74 68 Section 4.16. [Reserved] 74 4.16 Indebtedness 68 Section 4.17. Collateral 4.17 Dormant Companies 68 Section 4.18 Insurance 68 Section 4.19 Security Interests 68 Section 4.20 Transaction Documents 74 68 Section 4.18. [Reserved] 75 Section 4.19. Healthcare Matters 75 Section 4.20. Sanctions 78 Section 4.21. Anti-Corruption Laws 78 Section 4.22. Patriot Act 78 4.21 Sanctioned Entity/Sanctioned Persons 69 ARTICLE V V. AFFIRMATIVE COVENANTS 78 69 Section 5.1. 5.1 Financial Statements and Other Information 78 69 Section 5.2. 5.2 Notices of Material Events 80 71 Section 5.3. Existence; Conduct of Business 82 5.3 Existence 72 Section 5.4. 5.4 Compliance with Laws 82 Laws, Etc. 72 Section 5.5. 5.5 Payment of Obligations 83 72 Section 5.6. 5.6 Books and Records 83 72 Section 5.75.7 Visitation, Inspection, Etc. Visitation and Inspection 83 73 Section 5.8. 5.8 Maintenance of Properties; Properties 73 Section 5.9 Insurance 83 Section 5.9. Use of Proceeds; Margin Regulations 84 Section 5.10. [Reserved] 84 Section 5.11. Cash Management 84 Section 5.12. Additional Subsidiaries and Collateral 85 Section 5.13. Mortgages; Collateral Access Agreements 86 Section 5.14. Further Assurances 87 Section 5.15. Health Care Matters 87 Section 5.16. Post-Closing Matters 88 Section 5.17. [Reserved] 88 Section 5.18. Limitations on Designation of Excluded Subsidiaries 88 Section 5.19. Anti-Corruption Laws 90 ARTICLE VI FINANCIAL COVENANTS 90 Section 6.1. Leverage Ratio 90 Section 6.2. Interest/Rent Coverage Ratio 90 ARTICLE VII NEGATIVE COVENANTS 91 Section 7.1. Indebtedness and Preferred Equity 91 Section 7.2. Liens 93 Section 7.3. Fundamental Changes 94 Section 7.4. Investments, Loans 95 Section 7.5. Restricted Payments 97 Section 7.6. Sale of Assets 98 Section 7.7 Transactions with Affiliates 99 Section 7.8. Restrictive Agreements 100 Section 7.9. Sale and Leaseback Transactions 100 Section 7.10. Hedging Transactions 101 Section 7.11. Amendment to Material Documents 101 Section 7.12. PropCo Master Leases 101 Section 7.13. Accounting Changes 101 Section 7.14. Government Regulation 101 Section 7.15. Sanctions 102 Section 7.16. Anti-Corruption Laws 102 ARTICLE VIII EVENTS OF DEFAULT 102 Section 8.1. Events of Default 102 Section 8.2. Application of Proceeds from Collateral 105 ARTICLE IX THE ADMINISTRATIVE AGENT 106 Section 9.1. Appointment of the Administrative Agent 106 Section 9.2. Nature of Duties of the Administrative Agent 107 Section 9.3. Lack of Reliance on the Administrative Agent 107 Section 9.4. Certain Rights of the Administrative Agent 108 Section 9.5. Reliance by the Administrative Agent 108 Section 9.6. The Administrative Agent in its Individual Capacity 108 Section 9.7. Successor Administrative Agent 108 Section 9.8. Withholding Tax 109 Section 9.9. The Administrative Agent May File Proofs of Claim 109 Section 9.10. Authorization to Execute Other Loan Documents 110 Section 9.11. Collateral and Guaranty Matters 110 Section 9.12. Co-Documentation Agents; Syndication Agent 110 Section 9.13. Right to Realize on Collateral and Enforce Guarantee 110 Section 9.14. Secured Bank Product Obligations and Hedging Obligations 111 ARTICLE X MISCELLANEOUS 111 Section 10.1. Notices 111 Section 10.2. Waiver; Amendments 114 Section 10.3. Expenses; Indemnification 116 Section 10.4. Successors and Assigns 117 Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process 121 Section 10.6. WAIVER OF JURY TRIAL 122 Section 10.7. Right of Set-off 122 Section 10.8. Counterparts; Integration 122 Section 10.9. Survival 123 Section 10.10. Severability 123 Section 10.11. Confidentiality 123 Section 10.12. Interest Rate Limitation 124 Section 10.13. Waiver of Effect of Corporate Seal 124 Section 10.14. Patriot Act 124 Section 10.15. No Advisory or Fiduciary Responsibility 124 Section 10.16. Location of Closing 125 Section 10.17. Releases of Collateral 125 Section 10.18. Amendment and Restatement 126 Schedules Schedule I Commitment Amounts Schedule II Existing Letters of Credit Schedule 1.1 Cornerstone Equity Plan Schedule 1.2 Subsidiary Agreements Schedule 4.11 Real Estate Schedule 4.14 Subsidiaries Schedule 4.19 Healthcare Matters Schedule 5.16 Post-Closing Matters Schedule 7.1 Existing Indebtedness Schedule 7.2 Existing Liens Schedule 7.4 Existing Investments Schedule 7.8 Existing Leases with Restrictive Agreements Exhibits Exhibit A Form of Assignment and Acceptance Exhibit B Form of Amended and Restated Guaranty and Security Agreement Exhibit 2.3 Form of Notice of Revolving Borrowing Exhibit 2.4 Form of Notice of Swingline Borrowing Exhibit 2.7 Form of Notice of Continuation/Conversion Exhibit 3.1(b)(ii) Form of Secretary’s Certificate Exhibit 3.1(b)(iv) Form of Officer’s Certificate Exhibit 5.1(c) Form of Compliance Certificate AMENDED AND RESTATED CREDIT AGREEMENT THIS AMENDED AND RESTATED CREDIT AGREEMENT (as amended, restated, supplemented, or otherwise modified, this “Agreement”) is made and entered into as of February 5, 2016, by and among THE ENSIGN GROUP, INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”) and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank (in such capacity, an “Issuing Bank”) and as swingline lender (in such capacity, the “Swingline Lender”).73 Page