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<br />INTO ACCOUNT PROGRESS MADE TO LIMIT THE SPREAD OF THE VIRUS TO DATE, INCLUDING
<br />PROGRESS RELATING TO THE DISTRIBUTION OF VACCINATIONS, INCLUDING TO THE ELDERLY
<br />AND TO SERVICE PROVIDERS IN THE SKILLED NURSING AND SENIOR LIVING INDUSTRIES.
<br />SEE APPENDIX A: [“THE CORPORATION, THE PROJECT AND THE GUARANTOR”] FOR
<br />SPECIFIC INFORMATION REGARDING THE CORPORATION AND COVID-19 AS OF THE DATE HEREOF,
<br />AND FOR A DESCRIPTION OF THE OPERATIONAL AND FINANCIAL IMPACTS OF COVID-19 ON THE
<br />CORPORATION AND THE GUARANTOR.
<br />The Corporation’s business and financial results may be harmed by an international, national or localized
<br />outbreak of a highly contagious or epidemic disease. The current international outbreak of the novel coronavirus
<br />(“COVID-19”) is having numerous and varied medical, economic, and social impacts, any and all of which may
<br />adversely affect the Corporation’s business and financial results. The World Health Organization declared the
<br />COVID-19 outbreak to be a pandemic. On March 13, 2020, former President Trump declared a national emergency
<br />in response to COVID-19. Business disruptions could include temporary closures of the Project facilities or the
<br />facilities of suppliers and their contract manufacturers. A substantial portion of the population is subject to voluntary
<br />or involuntary quarantine, leading to general and substantial reductions in economic activity. Health care providers
<br />are disproportionately likely to become ill from COVID-19, which may limit the ability of the Project to provide care.
<br />Throughout the United States, health care providers are experiencing, or expect to experience, shortages of
<br />pharmaceuticals, protective gear, testing materials and medical equipment. Even if the Project were able to find
<br />alternate sources for such products, they may cost more, which could adversely impact profitability and the financial
<br />condition of the Project. Changes in operations at the Project may result in additional costs being incurred related to
<br />adjustments to the use of various facilities and to staffing during this outbreak, including overtime wages, wages paid
<br />to employees who are unable to work due to quarantine, and utilization of more expensive contract staff to provide
<br />care. COVID-19 could severely affect the Corporation’s ability to conduct normal business operations and, as a result,
<br />the operating results of the Project could be materially adversely affected.
<br />National, state, and local governments have taken, and are expected to continue to take, various actions,
<br />including the passage of laws and regulations, on a wide array of topics, in an attempt to slow the spread of COVID-
<br />19 and to address the health and economic consequences of the outbreak. Many of these government actions are
<br />expected to cause substantial changes to the way healthcare is provided, and how society in general functions. It is not
<br />clear how long such measures will remain in place.
<br />Various states, including Minnesota, and local governments have issued general “shelter-in-place” orders
<br />that mandate or strongly encourage social distancing, face coverings, quarantine after certain interstate travel, closed
<br />or limited school systems and closed or limited non-essential business activities in an effort to slow the spread of
<br />COVID-19. While such measures are expected to assist in responding to the recent outbreak, self-quarantines, shelter-
<br />in-place orders, and suspension of voluntary procedures and surgeries will likely have an adverse impact on the
<br />operations and financial position of health care provider systems due to increased costs, potential reduction in overall
<br />patient volume, and shifts in payor mix. Even if such actions help reduce the rate of increase in COVID-19 cases in
<br />the near term, they may prove to be ineffective in reducing the total number of cases. COVID-19 outbreak
<br />developments, and attendant governmental and regulatory responses, are rapidly changing. Management cannot
<br />presently quantify or estimate the cumulative impact of these recent developments taken as a whole.
<br />Effective March 11, 2021, the American Rescue Plan Act of 2021 became law and provides for the most
<br />recent economic stimulus measures. However, the impact of this and other legislation and others on the current and
<br />future operations and revenues of the Corporation remain unknown.
<br /> The federal government is working with private companies to increase the manufacture and supply of
<br />pharmaceuticals and personal protective equipment, such as masks, respirators, gloves and ventilators needed to treat
<br />COVID-19 patients. In addition, the federal government may, from time to time, distribute ventilators and various
<br />personal protective equipment nationwide and make certain military hospital facilities, including hospital ships, and
<br />other facilities are available to provide additional bed capacity for COVID-19 patients in hard hit areas. As of March
<br />2021, the federal Food and Drug Administration (“FDA”) authorized three COVID-19 vaccines for emergency use,
<br />the Pfizer-BioNTech COVID-19 Vaccine manufactured by Pfizer Inc., the Moderna COVID-19 Vaccine
<br />manufactured by ModernaTX, Inc., and the Janssen COVID-19 Vaccine manufactured by Janssen Biotech Inc., a
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