Purchase and Sale Agreement



 Exhibit 10.3 
 PURCHASE AND SALE AGREEMENT 
 between 

OKLAHOMA CARE GROUP, LP 
 as Seller, 
 and 

CHP PARTNERS, LP, 

as Purchaser 

Dated as of July 3, 2013 







 TABLE OF CONTENTS 

 

									
	 	 	 	    	 	  	Page	 
	I.	 	DEFINITIONS	  	 	1	  
			
	II.	 	SALE AND PURCHASE OF PROPERTY	  	 	9	  
		 	2.1	    	Purchase of Property	  	 	9	  
		 	2.2	    	Purchase Price and Terms of Payment	  	 	9	  
		 	2.3	    	Due Diligence Period	  	 	10	  
		 	2.4	    	Assumption of the Leases and Contracts	  	 	10	  
		 	2.5	    	Assumption of the Resident Agreements	  	 	10	  
		 	2.6	    	Assumed Liabilities	  	 	10	  
		 	2.7	    	Purchase Price	  	 	11	  
		 	2.8	    	Discharge of Liens	  	 	11	  
		 	2.9	    	Negotiation and Execution of Management Documents	  	 	11	  
			
	III.	 	ESCROW	  	 	11	  
		 	3.1	    	Escrow	  	 	11	  
		 	3.2	    	Deposit of Funds	  	 	12	  
			
	IV.	 	TITLE AND SURVEY	  	 	12	  
		 	4.1	    	Title Examination; Commitment for Title Insurance	  	 	12	  
		 	4.2	    	Survey	  	 	12	  
		 	4.3	    	Title Objections; Cure of Title Objections	  	 	12	  
		 	4.4	    	Conveyance of Title	  	 	13	  
			
	V.	 	INSPECTIONS	  	 	14	  
		 	5.1	    	Purchaser’s Independent Inspection	  	 	14	  
		 	5.2	    	Access	  	 	15	  
		 	5.3	    	Confidential Nature of Due Diligence Materials	  	 	16	  
		 	5.4	    	Continuing Nature of Purchaser’s Obligations	  	 	16	  
			
	VI.	 	PROPERTY	  	 	16	  
		 	6.1	    	Condition of Property	  	 	16	  
		 	6.2	    	Survival of Article VI	  	 	18	  
			
	VII.	 	CLOSING	  	 	18	  
		 	7.1	    	Closing Date	  	 	18	  
		 	7.2	    	Action Prior to the Closing Date by Seller	  	 	19	  


  
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 TABLE OF CONTENTS 

(continued) 
  


									
	 	 	 	    	 	  	Page	 
		 	7.3	    	Action Prior to the Closing Date by Purchaser	  	 	21	  
		 	7.4	    	Recording of Deeds	  	 	22	  
		 	7.5	    	Prorations	  	 	22	  
		 	7.6	    	Closing Costs	  	 	25	  
		 	7.7	    	Possession	  	 	25	  
		 	7.8	    	Post-Closing Audit	  	 	25	  
			
	VIII.	 	ADDITIONAL COVENANTS AND INDEMNITIES	  	 	25	  
		 	8.1	    	Purchaser’s Covenants	  	 	25	  
		 	8.2	    	Seller Covenants	  	 	26	  
		 	8.3	    	Employee Matters	  	 	28	  
		 	8.4	    	Bridging of Licenses	  	 	29	  
			
	IX.	 	REPRESENTATIONS AND WARRANTIES	  	 	30	  
		 	9.1	    	Purchaser’s Representations and Warranties	  	 	30	  
		 	9.2	    	Seller’s Representations and Warranties	  	 	31	  
		 	9.3	    	Seller’s Knowledge	  	 	33	  
		 	9.4	    	Failure of Condition But No Seller Breach	  	 	34	  
		 	9.5	    	Survival Period	  	 	34	  
			
	X.	 	CONDITIONS PRECEDENT TO CLOSING	  	 	34	  
		 	10.1	    	Conditions to Seller’s Obligations	  	 	34	  
		 	10.2	    	Conditions to Purchaser’s Obligations	  	 	35	  
		 	10.3	    	Failure of Conditions to Closing	  	 	35	  
			
	XI.	 	REMEDIES FOR PRE-CLOSING AND POST-CLOSING DEFAULTS ; LIQUIDATED DAMAGES	  	 	36	  
		 	11.1	    	Default by Purchaser Prior to Closing	  	 	36	  
		 	11.2	    	Default by Seller Prior to Closing	  	 	37	  
		 	11.3	    	Limitations of Purchaser’s Post-Closing Claims	  	 	37	  
		 	11.4	    	Survival of Purchaser’s Claims	  	 	38	  
		 	11.5	    	Limitations on Liability	  	 	39	  
		 	11.6	    	Survival	  	 	39	  
			
	XII.	 	FINANCIAL ADVISOR	  	 	39	  
			
	XIII.	 	NOTICES	  	 	40	  


  
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 TABLE OF CONTENTS 

(continued) 
  


									
	 	 	 	    	 	  	Page	 
	XIV.	 	MISCELLANEOUS	  	 	41	  
		 	14.1	    	Governing Law	  	 	41	  
		 	14.2	    	Exhibits and Schedules a Part of This Agreement	  	 	41	  
		 	14.3	    	Executed Counterparts	  	 	41	  
		 	14.4	    	Assignment	  	 	41	  
		 	14.5	    	IRS – Form 1099-S	  	 	41	  
		 	14.6	    	Successors and Assigns	  	 	41	  
		 	14.7	    	Time is of the Essence	  	 	42	  
		 	14.8	    	Entire Agreement	  	 	42	  
		 	14.9	    	Further Assurances	  	 	42	  
		 	14.10	    	Waiver	  	 	42	  
		 	14.11	    	Headings	  	 	42	  
		 	14.12	    	Risk of Loss	  	 	42	  
		 	14.13	    	Construction of Agreement	  	 	44	  
		 	14.14	    	No Public Disclosure	  	 	44	  
		 	14.15	    	Covenants, Representations and Warranties	  	 	45	  
		 	14.16	    	Confidentiality	  	 	45	  
		 	14.17	    	No Third-Party Beneficiaries	  	 	46	  
		 	14.18	    	Electronic Signatures	  	 	46	  
		 	14.19	    	Severability	  	 	46	  
		 	14.20	    	Cumulative Remedies	  	 	46	  
		 	14.21	    	WAIVER OF JURY TRIAL	  	 	46	  


  
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 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is dated as of this 3rd day of July, 2013 (the “Effective Date”), and is
made by and between Oklahoma Care Group, LP, a Texas limited partnership (“Seller”), and CHP Partners, LP, a Delaware limited partnership (“Purchaser”). 

RECITALS 
 A.
Seller is the owner of that certain improved real property located at 13000 N. May Avenue, Oklahoma City, OK 73120 and known as “Town Village” (the “Property”). 

B. Purchaser desires to purchase the Property and to acquire all of Seller’s right, title and interest in and to the Property, on
the terms and conditions set forth in this Agreement. 
 C. Seller desires to sell to Purchaser the Property and to convey to
Purchaser all of its right, title and interest in the Property, on the terms and conditions set forth in this Agreement. 
 D.
All capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to such terms in Article I. 
 AGREEMENT 
 NOW, THEREFORE, for valuable consideration, including the
promises, covenants, representations and warranties hereinafter set forth, the receipt and adequacy of which are hereby acknowledged, the parties, intending to be legally and equitably bound, agree as follows. 

I. 

DEFINITIONS 
 As used in this Agreement, the following terms have the meanings ascribed to them in this Article I: 
 “Accounts Receivable.” All accounts receivable and other sums owing to Seller in connection with the operation of the Facility existing prior to the Cut-Off Time. 

“Additional Deposit.” As set forth in Section 2.2(a) hereof. 

“Affiliate.” With respect to any person or entity, (i) all persons or entities that, directly or indirectly,
control, are controlled by, or under common control with, such person or entity; or (ii) all persons or entities that, directly or indirectly, own, are owned by or under common ownership with, such person or entity. 

“Agreement.” As set forth in the preamble hereof. 

“Assignment and Assumption of Leases and Contracts.” As set forth in Section 7.2(d) hereof. 







 “Assignment and Assumption of Intangible Property.” As set forth in
Section 7.2(c) hereof. 
 “Assignment and Assumption of Resident Agreements.” As set forth in
Section 7.2(e) hereof. 
 “Assumed Contracts.” As set forth in Section 2.4 hereof. 

“Bill of Sale.” As set forth in Section 7.2(b) hereof. 

“Books and Records.” All documentation, third party reports and studies, land surveys, land use applications, land use
permits and approvals, operating permits and other documents in printed or electronic form (but with respect to items in electronic format, excluding software which is proprietary to Seller, its Affiliates or any third party, or is licensed from
third parties by Seller or its Affiliates) that is in the possession or under the control of Seller or its Affiliates and that pertains to the use, operation, ownership or condition of the Property, including (i) all correspondence, billing,
and other files, (ii) all structural reviews, environmental assessments or audits, architectural drawings and engineering, geophysical, soils, seismic, geologic, environmental (including with respect to the impact of materials used in the
construction or renovation of the Improvements) and architectural reports, studies and certificates pertaining to the Property, and (iii) all financial statements and other accounting, tax, financial, and other books and records relating to the
use, maintenance, and operation of the Property, but excluding (x) any Excluded Documents and (y) those items that are consolidated with items from other facilities owned, leased or managed by Seller or its Affiliates and not being
conveyed to Purchaser, if any. 
 “Bridging Lease.” As set forth in Section 8.4(b) hereof. 

“Bridging Management Agreement.” As set forth in Section 8.4(b) hereof. 

“Bridging Sublease.” As set forth in Section 8.4(b) hereof. 

“Business Agreements.” Any Lease, rental agreement, loan agreement, mortgage, easement, covenant, restriction or other
agreement or instrument affecting all or a portion of the Property other than a Contract. 
 “Cap Amount.” As
set forth in Section 11.3(a) hereof. 
 “Casualty.” As set forth in Section 14.12(a) hereof.

 “Casualty Notice.” As set forth in Section 14.12(a) hereof. 

“Casualty Renovation Cost.” As set forth in Section 14.12(a) hereof. 

“Claims.” Collectively, damages, claims (including without limitation, any claim for damage to property of others or
injury to or death of any persons), penalties, obligations, liabilities, fines, losses, causes of action, fees, injuries, liens, encumbrance, proceedings, judgments, actions, rights, demands, costs and expenses (including without limitation,
reasonable attorneys’ fees whether or not legal proceedings are instituted and court and litigation costs). 

  
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 “Claim Notice.” As set forth in Section 11.3(b) hereof. 

“Closing.” The sale and assignment of the Property to Purchaser on the Closing Date and the performance by each party of
the obligations on its part then to be performed under and in accordance with this Agreement. 
 “Closing
Date.” As set forth in Section 7.1 hereof. 
 “Closing Documents.” As set forth in
Section 11.3(a) hereof. 
 “Closing Payment.” As set forth in Section 2.2(b) hereof. 

“Closing Statement.” As set forth in Section 7.2(k) hereof. 

“Contracts.” All leases of furniture, fixtures and equipment, all contracts (excluding Resident Agreements), all third
party payor provider agreements (excluding Governmental Entity third party payor provider agreements) and all other agreements relating to the ownership and/or operation of the Facility and/or the Property, together with all related written
warranties and guaranties, but excluding: (a) any leases of furniture, fixtures and equipment, contracts, or agreements that apply to any property other than the Property (all of which shall be amended or terminated at Seller’s expense
such that they no longer apply to the Property as of the Closing Date), (b) any leases of furniture, fixtures and equipment, contracts, or agreements that are with an Affiliate of Seller (which shall be terminated as of the Closing Date at
Seller’s sole cost and expense), (c) any property management agreement (which shall be terminated as of the Closing Date at Seller’s sole cost and expense), (d) any leases of furniture, fixtures and equipment, contracts, or
agreements entered into in violation of Section 8.2 and (e) any Leases. 
 “Current Month.” As set
forth in Section 7.5(i) hereof. 
 “Cut-Off Time.” As set forth in Section 7.5(c) hereof. 

“Deed.” As set forth in Section 7.2(a) hereof. 

“Deposit.” As set forth in Section 2.2(a) hereof. 

“Due Diligence Materials.” All of the documents and other materials delivered to or otherwise made available for
inspection (including in a website data room) by Purchaser and its representatives during the Due Diligence Period. 

“Due Diligence Period.” The period commencing on the Effective Date and ending at 5:00 p.m. (Eastern Time) on the date
which is forty-five (45) days from the Effective Date. 
 “Eastern Time.” Eastern Standard Time or Eastern
Daylight Time, as applicable. 
 “Effective Date.” As set forth in the preamble hereof. 

  
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 “Environmental Damages.” All claims, judgments, damages, losses, penalties,
fines, liabilities (including strict liability), encumbrances, liens, costs, and expenses of investigation and defense of any claim, whether or not such claim is ultimately defeated, and of any good faith settlement of judgment, of whatever kind or
nature, contingent or otherwise matured or unmatured, foreseeable or unforeseeable, including without limitation reasonable attorneys’ fees and disbursements and consultants’ fees, any of which are incurred at any time as a result of the
existence of Hazardous Materials upon, about or beneath the Real Property or migrating to or from the Real Property, or the existence of a violation of Environmental Requirements pertaining to the Real Property, regardless of whether the existence
of such Hazardous Materials or the violation of Environmental Requirements arose prior to the present ownership or operation of the Real Property. 
 “Environmental Requirements” All applicable present and future statutes, regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions,
franchises, and similar items, of all governmental agencies, departments, commissions, boards, bureaus, or instrumentalities of the United States, states and political subdivisions thereof and all applicable judicial, administrative, and regulatory
decrees, judgments, and orders relating to Hazardous Materials. 
 “Escrow.” As set forth in Section 3.1
hereof. 
 “Escrow Agent.” Fidelity National Title Insurance Company, 1900 West Loop South, Suite 200,
Houston, TX 77027, Attention: Selina I. Parelskin, sparelskin@fnf.com, Phone: (310) 701-7813. 

“Escrow Agreement.” As set forth in Section 3.1 hereof. 

“Excluded Assets.” The Excluded Documents, the Excluded Intellectual Property Rights, cash, cash equivalents, checks and
other funds, including, without limitation, the Accounts Receivable (other than the proration of rent for the Current Month as set forth in Section 7.5(i) below and payments received from third-party payors in connection with the Licensed
Facility, as set forth in Section 7.5(i) below), and balances on deposit to the credit of Seller with banking institutions, all of which shall be retained by Seller. 
 “Excluded Documents.” All (a) casualty, liability, and life insurance policies owned or obtained by Seller on behalf or in connection with Seller’s business at the Facility,
(b) the corporate minute books and stock registers of Seller, (c) internal memoranda, correspondence, analyses, documents or reports prepared by or for Seller or its Affiliates in connection with the sale of the Property, including,
without limitation, tax returns or financial statements of Seller (exclusive of operating statements and the general ledger of the Facility and any supporting information which shall be available for review by Purchaser) for or in connection with
its ownership or operation of the Property, (d) communications between Seller or any Affiliate and their respective attorneys, (e) employee personnel files of Seller, (f) appraisals, assessments or other valuations of the Property in
the possession or control of Seller, (g) original bills, invoices, receipts and checks relating to expenses incurred prior to the Cut-Off Time (provided that Purchaser shall be entitled to copies of such items and to retain copies of all of the
other Due Diligence Materials after Closing, which right shall survive the Closing), and (h) any confidential or proprietary information of Seller or any confidential information of a resident (unless the transfer of such confidential
information of a resident is made in compliance with all Legal Requirements), in each case however embodied. 

  
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 “Excluded Intellectual Property Rights.” As set forth on Schedule
“1” attached hereto. 
 “Existing Liens.” As set forth in Section 2.8 hereof. 

“Facility.” The senior living community located on the Real Property. 

“Filing Date.” As set forth in Section 8.1(b) hereof. 

“Financial Advisor.” As set forth in Article XII hereof. 

“Financial Statements.” The statements of income and expenses for calendar years 2011 and 2012 and year-to-date monthly
statements of income and expenses for 2013, including any such subsequent statements issued prior to Closing. 
 “Good
Funds.” A deposit of cashier’s check, certified funds, or confirmed wire transfer of funds. 
 “Hazardous
Materials.” Any substance (i) the presence of which requires investigation or remediation under any federal, state or local statute, regulation, ordinance or policy; or (ii) which is defined as a “hazardous waste”
or “hazardous substance” under any federal, state or local statute, regulation or ordinance, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et
seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.) and amendments thereto and regulations promulgated thereunder; or (iii) which is toxic, explosive, corrosive, infectious or otherwise
hazardous or is regulated by any federal, state or local governmental authority; or (iv) without limitation which contains polychlorinated biphenyls (PCBs), asbestos or urea formaldehyde other than cleaning supplies, solvents and other
substances typically used at the Property and other comparable properties held and used in commercially reasonable amounts and methods and in accordance with Environmental Requirements. 

“Healthcare Permits.” A license, certification, permit, authorization, registrations or similar document or authority
issued or required under Healthcare Requirements applicable to the ownership, leasing and/or operation of the Facility. 

“Healthcare Requirements” All applicable Legal Requirements relating to the operation of senior housing nursing, memory
and/or dementia care facilities. 
 “Improvements.” The buildings, structures, fixtures, and other permanent
improvements located on the Land, including, without limitation, the Facility, electrical distribution systems, HVAC systems, walkways, driveways, parking lots, plumbing, lighting, and mechanical equipment and fixtures installed thereon, and all
rights, benefits and privileges appurtenant thereto. 
 “Initial Deposit.” As set forth in Section 2.2(a)
hereof. 

  
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 “Intangible Property.” All (a) Intellectual Property Rights,
(b) local telephone and facsimile exchange numbers identified exclusively with the Facility, (c) certificates (including the Certificate of Occupancy for the Real Property), licenses, permits (including the Permits) and warranties now in
effect with respect to the Property permitted to be transferred pursuant to the applicable Legal Requirements and at no cost to Seller, (d) all general intangibles relating to design, development, operation and use of the Property, all rights
and work product under construction, service, consulting, engineering, architectural, design and construction agreements (including any warranties contained therein) and other Assumed Contracts, plans and specifications of any portion of the
Property, and all development rights and goodwill related to any portion of the Property, and (e) all other intangible property used by Seller exclusively in connection with the ownership and operation of the Property, but excluding the
Excluded Assets. 
 “Intellectual Property Rights.” Subject to the last sentence of this paragraph, all
patents, copyrights, trade secrets, trademarks, trade names, service marks, and other know-how owned by Seller, including but not limited to (a) Seller’s rights to the name “Town Village”, (b) marketing and management
intangibles, (c) computer software developed and owned by Seller or its Affiliates and used in the operation of the Facility, and (d) manuals, instructions, policies, procedures and directives issued by Seller or its Affiliates to its
employees at the Facility that relate solely to the operation of the Facility. The term “Intellectual Property Rights” includes the Proprietary Marks and the specific data and information stored or maintained on the Intellectual Property
Rights that uniquely pertains to the Facility or those served at the Facility (unless such data and information is confidential or proprietary to Seller). The term “Proprietary Marks” means all trademarks, service marks, trade names, trade
dress, symbols, logos, slogans, designs, insignia, emblems, devices, domain names, distinctive designs of signs, or any other source identifying feature, or combinations thereof, which are used to identify Seller’s or its Affiliates’
services at the Facility, or which are used in connection with the operation of the Facility by Seller or its Affiliates. The Intellectual Property Rights shall exclude the Excluded Assets. 

“Inventory.” All inventories, materials and supplies used in connection with the operation of the Property and located
thereat. 
 “Land.” The land, as more particularly described on Exhibit “A” attached hereto
and upon which the Improvements are located, including all easements, rights-of-way, rights of ingress and egress, strips, zones, licenses, transferable hereditaments, privileges, tenements and appurtenances in any way belonging to or appertaining
to the same or the Improvements, and any right or interest in any open or proposed highways, streets, roads, avenues, alleys, easements, strips, gores and rights-of-way in, across, in front of, contiguous to, abutting or adjoining the Land, and
other rights and benefits running with the Land and/or the owner of the Land. 
 “Leases.” All leases,
subleases, licenses, service agreements, concessions or other agreements granting an interest to any Person for the use and occupancy of a portion of such Facility, which are in effect or executed as of the Effective Date or which become effective
or executed between the Effective Date and the Closing Date, together with all security deposits thereunder, if any, but excluding Resident Agreements. 

  
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 “Legal Requirement.” Any applicable federal, state, local or municipal
constitution, law, ordinance, rule, order, regulation or statute of any governmental authority bearing on the construction, alteration, rehabilitation, maintenance, use, operation, sale, transfer or any other aspect of all or any portion of the
Property, including the Environmental Requirements and the Healthcare Requirements. 
 “Licensed Facility.” The
assisted living component of the Facility. 
 “New Manager” shall mean Integrated Senior Living LLC, a Texas
limited liability company, which is an Affiliate of Seller. 
 “Management Documents.” As set forth in
Section 2.9 hereof. 
 “Material Contract.” Any Contract that has a value, or involves payment by (or to)
Seller or its Affiliates, of at least Five Thousand and No/100 Dollars ($5,000.00) during any twelve (12) month period. 

“Non-Foreign Affidavit.” As set forth in Section 7.2(f) hereof. 

“Notice to Residents.” As set forth in Section 7.2(n) hereof. 

“Notice.” As set forth in Article XIII hereof. 
 “Official Records.” The office of the recorder of deeds and other real estate records in the jurisdiction in which the Property is located. 

“Other Permits.” The licenses and permits, approvals, entitlements, and other governmental authorizations issued by a
governmental or administrative agency or authority (whether federal, state or local) in Seller’s possession or control in connection with the ownership, operation, planning, development, constructions, use, or maintenance of the Property,
including certificates of occupancy, but excluding the Healthcare Permits. 
 “Pending Claim.” As set forth in
Section 11.4 hereof. 
 “Permits.” Collectively, the Healthcare Permits and the Other Permits. 

“Permitted Exceptions.” As set forth in Section 4.4 hereof. 

“Personal Property.” All (a) keys and combinations to all doors, cabinets, enclosures and other locks on or about
the Real Property, (b) furniture, equipment, televisions, telephone systems; mechanical systems, fixtures and equipment; electrical systems, fixtures and equipment; heating fixtures, systems, and equipment; air conditioning fixtures, systems
and equipment; plumbing fixtures, systems, and equipment; security systems and equipment; carpets, drapes, artwork and other furnishings; refrigerators, microwaves, ovens, stoves, and all other appliances; vehicles, office equipment, furniture and
fixtures not considered improvements, spare parts, supplies and other physical assets, machinery, tools, trade fixtures, utensils, china, glassware, and other personal property owned by Seller, which are used exclusively in connection with the
maintenance and operation of the Facility and/or the Real Property, (c) copies of files maintained or generated by Seller in the course of the operation of the Property (excluding the Excluded Documents) which are located on the Real Property,
(d) the Inventory, (e) the Books and 

  
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Records, and (h) all other personal property which Seller is the owner thereof and which is used by Seller exclusively in connection with the ownership, maintenance, and operation of the
Facility and/or the Real Property; but excluding, however, (i) the Excluded Assets, (ii) the personal property owned by any resident or employee, and (iii) all tax and utilities and other deposits. 

“Post-Closing Escrow Agreement.” As set forth in Section 11.3(a) hereof. 

“Post-Closing Liability Escrow.” As set forth in Section 11.3(a) hereof. 

“Property.” As set forth in Recital A, with the Property comprised of the Land, the Improvements, the Facility, the
Personal Property, the Leases, the Contracts, and the Intangible Property owned or entered into, as applicable, by Seller. 

“Proprietary Information.” As set forth in Section 14.16 hereof. 

“Purchaser.” As set forth in the preamble hereof. 

“Purchase Price.” As set forth in Section 2.2 hereof. 

“Purchaser Permits.” As set forth in Section 8.1(b) hereof. 

“Real Property.” The Land and the Improvements. 

“Rejected Contracts.” As set forth in Section 2.4 hereof. 

“Rent Roll.” As set forth in Section 9.2(n) hereof. 

“Required Deletion Items.” As set forth in Section 4.3 hereof. 

“Resident Agreements.” Those leases, occupancy, residency, and similar written agreements entered into with residents of
the Facility, and all amendments, modifications, supplements, renewals, and extensions thereof. 
 “Retained
Liabilities.” As set forth in Section 2.6 hereof. 
 “Seller.” As set forth in the preamble
hereof. 
 “Survey.” As set forth in Section 4.2 hereof. 

“Survival Date.” As set forth in Section 11.4 hereof. 

“Termination Notice.” As set forth in Section 2.3 hereof. 

“Threshold Amount.” As set forth in Section 11.3(a) hereof. 

“Title Commitment.” As set forth in Section 4.1 hereof. 

“Title Objection Date.” As set forth in Section 4.3 hereof. 

  
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 “Utility Deposits.” All deposits made by Seller in connection with
providing water, sewer, gas, electricity, telephone and other public utilities to the Real Property. 
 “WARN
Act.” As set forth in Section 8.3(b) hereof. 
 II. 

SALE AND PURCHASE OF PROPERTY 
 2.1 Purchase of Property. On the Closing Date, and subject to the terms and conditions of this Agreement, Seller shall sell, assign, convey, transfer and deliver to Purchaser, and Purchaser shall
purchase and acquire from Seller, Seller’s right, title, and interest in and to the Land and Improvements, good and marketable title in the Personal Property, and all of Seller’s right, title and interest in and to the Leases, Assumed
Contracts, the Resident Agreements and the Intangible Property, free and clear of all monetary liens and encumbrances (other than the Leases, the Assumed Contracts, the Resident Agreements, and the Permitted Exceptions), as further described in
Section 2.7 hereof, at the purchase price provided in Section 2.2 hereof. 
 2.2 Purchase Price and Terms of
Payment. The purchase price for the Property (“Purchase Price”) shall be Twenty Two Million Five Hundred Thousand and No/100 Dollars ($22,500,000.00) and shall consist of and be payable as follows: 

(a) Within one (1) business day after the Effective Date, Purchaser shall deliver to Escrow Agent, in Good Funds, the
sum of One Hundred Twelve Thousand Five Hundred and No/100 Dollars ($112,500.00) (together with all interest accrued thereon, the “Initial Deposit”). If this Agreement is not terminated pursuant to Section 2.3, within one
(1) business day after the expiration of the Due Diligence Period, Purchaser shall deliver to Escrow Agent, in Good Funds, as an additional deposit, the sum of One Hundred Twelve Thousand Five Hundred and No/100 Dollars ($112,500.00) (together
with all interest accrued thereon, the “Additional Deposit”; the Initial Deposit together with the Additional Deposit shall hereinafter individually and collectively be referred to as the “Deposit”). The Deposit
shall be non-refundable to Purchaser, except (i) if a condition precedent to Purchaser’s obligations as set forth in Section 10.2 below is not satisfied or cured as of the Closing Date and such failure is not due to a default by
Purchaser, or (ii) as specifically provided in Section 2.3, Section 4.3, Section 9.4, Section 10.3 or Section 11.2 below, and in any such event Purchaser’s right to such refund will survive any termination of this
Agreement. The Deposit shall be applied to the Purchase Price on the Closing Date. 
 (b) Not later than
1:00 p.m. (Eastern Time) on the Closing Date, Purchaser shall deposit with Escrow Agent, in Good Funds, the balance of the Purchase Price, reduced or increased by such amounts as are required to take into account any prorations, credits, costs or
other adjustments which are required by this Agreement and which can be computed and determined as of the time for the required deposit hereunder. The amount to be paid under this Section 2.2(b) is referred to in this Agreement as the
“Closing Payment.” 

  
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 2.3 Due Diligence Period. At any time prior to the expiration of the Due Diligence
Period, Purchaser shall be free, in its sole and absolute discretion, and for any or no reason whatsoever to terminate this Agreement by written notice to Seller (the “Termination Notice”) delivered on or prior to the expiration of
the Due Diligence Period. Upon delivery of the Termination Notice prior to the expiration of the Due Diligence Period, Purchaser shall receive a return of the Deposit (to the extent previously deposited) and the parties shall equally share the
cancellation charges, if any, of Escrow Agent. If the Termination Notice is not delivered on or prior to the expiration of the Due Diligence Period, Purchaser shall be deemed to have waived its right to terminate this Agreement pursuant to this
Section 2.3. 
 2.4 Assumption of the Leases and Contracts. As additional consideration, Purchaser shall, on and as
of the Closing Date, at its sole cost and expense, assume and agree to pay all sums and perform, fulfill and comply with all other covenants and obligations which are to be paid, performed and complied with by Seller under the Leases and Assumed
Contracts which first arise or accrue on and after the Closing Date. Prior to the expiration of the Due Diligence Period, Purchaser shall notify Seller in writing the identity of all Material Contracts that Purchaser elects to terminate
(collectively, the “Rejected Contracts”). Any Material Contracts existing as of the Effective Date that Purchaser does not notify Seller that Purchaser elects to terminate prior to the expiration of the Due Diligence Period,
together with those Contracts that do not meet the definition of “Material Contract” but are terminable without fee or penalty upon no more than sixty (60) days’ notice shall be “Assumed Contracts.”
Notwithstanding anything to the contrary set forth herein, Purchaser shall be responsible for payment of (i) all fees due for the period after Closing through the termination date of each Rejected Contract, and (ii) all termination fees
associated with the termination of each Rejected Contract. 
 2.5 Assumption of the Resident Agreements. As additional
consideration, Purchaser shall on and as of the Closing Date, at its sole cost and expense, assume and agree to perform, fulfill and comply with all covenants and obligations which are to be performed and complied with by Seller under the Resident
Agreements in effect at the Facility which first arise or accrue on and after the Closing Date. 
 2.6 Assumed
Liabilities. Except as expressly set forth herein, Purchaser shall not assume, in connection with the transaction contemplated hereby, any liability or obligation of Seller whatsoever, and, to this end, Seller shall retain responsibility for all
liabilities and obligations accrued or incurred from its operations prior to Closing and all liabilities and obligations arising from its operations prior to Closing, whether or not accrued and whether or not disclosed (the “Retained
Liabilities”). The terms of this Section 2.6 shall survive Closing. 

  
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 2.7 Purchase Price. Within five (5) days before the end of the Due Diligence
Period, the parties shall use their commercially reasonable efforts to agree on an allocation of the Purchase Price for the Property among the Real Property and the various items of Personal Property and Intangible Property. Each party agrees to
file federal, state and local tax returns consistent with such allocations agreed upon between the parties. If Seller and Purchaser do not agree on how the Purchase Price shall be allocated among the Real Property and the various items of Personal
Property and Intangible Property, each party shall file federal, state and local tax returns based on each party’s own determination of the proper allocations, each bearing its own consequences of any discrepancies. 

2.8 Discharge of Liens. Seller shall cause all bond financing, mortgages, deeds of trust, and monetary liens (including liens for
delinquent taxes and mechanics’ and judgment liens properly charged to Seller) affecting the Property and all indebtedness secured thereby (the “Existing Liens”) to be fully satisfied, released, and discharged of record on the
Closing Date with the use of the Closing Payment, so that Purchaser shall take title to the Property free of the same. All costs related to the discharge of the Existing Liens at the Property shall be borne by Seller. Seller acknowledges that such
satisfaction, release, and discharge may involve prepayment penalties or premiums and other costs or expenses, all of which shall be paid by Seller at its sole cost and expense in connection with the Closing (and the Closing Payment shall be used
for such purpose). 
 2.9 Negotiation and Execution of Management Documents. On or before the Effective Date, and
continuing throughout the Due Diligence Period, New Manager and Purchaser shall negotiate in good faith to enter into definitive, binding documents with respect to the management of the Property following Closing (the “Management
Documents”). The terms of the Management Documents shall be substantially in accordance with the terms set forth in that certain letter of intent dated June 4, 2013 between New Manager and Purchaser, with other such terms as the
parties thereto may negotiate. If New Manager and Purchaser have not fully executed the Management Documents by the date of expiration of the Due Diligence Period, then either Seller or Purchaser shall have the right to terminate this Agreement by
giving written notice to the other by not later than three (3) business days after the expiration of the Due Diligence Period. Upon any such termination, Purchaser shall receive a return of the Deposit (to the extent previously deposited) and
the parties shall equally share the cancellation charges, if any, of Escrow Agent. 
 III. 

ESCROW 

3.1 Escrow. Purchaser and Seller have established or will establish an escrow (“Escrow”) with Escrow Agent by
depositing with Escrow Agent the Deposit and having three (3) copies of the Escrow Agreement in the form attached hereto as Exhibit “B” duly executed (in counterparts or otherwise) by Seller, Purchaser and Escrow Agent (the
“Escrow Agreement”). The Deposit shall be held by Escrow Agent in accordance with the terms of the Escrow Agreement. In the event of any conflict between this Agreement and the Escrow Agreement, the terms of this Agreement shall
control. 

  
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 3.2 Deposit of Funds. Except as otherwise provided in this Agreement, all funds
deposited into the Escrow by Purchaser shall be immediately deposited by Escrow Agent into an interest bearing account, subject to the control of Escrow Agent in a bank or savings and loan association, or such other institution approved by
Purchaser, or such other investment as may be approved by Purchaser; provided, however, that such funds must be readily available as necessary to comply with the terms of this Agreement and the Escrow Agreement, and for the Escrow to close within
the time specified in Section 7.1 of this Agreement. Except as may be otherwise specifically provided herein, interest on amounts placed by Escrow Agent in any such investments or interest bearing accounts shall accrue to the benefit of
Purchaser, and Purchaser shall promptly provide to Escrow Agent Purchaser’s Tax Identification Number. 
 IV. 

TITLE AND SURVEY 
 4.1 Title Examination; Commitment for Title Insurance. Prior to or on the Effective Date, Seller has obtained from Escrow Agent and delivered to Purchaser, at Seller’s sole cost and expense, a
current commitment for an A.L.T.A. Owner’s Policy of Title Insurance 2006 Form (or, if not available, the local equivalent) (the “Title Commitment”) covering the Real Property and a copy of each document referenced in the Title
Commitment as an exception to title. 
 4.2 Survey. Prior to or on the Effective Date, Seller has delivered to Purchaser,
at Seller’s sole cost and expense, the existing survey for the Real Property (the “Survey”). In the event that Purchaser elects to have a new or updated Survey of the Real Property performed, it shall deliver a copy thereof to
Seller within five (5) days of receipt of any such Survey. 
 4.3 Title Objections; Cure of Title Objections.
Purchaser shall have until fifteen (15) days prior to the expiration of the Due Diligence Period (the “Title Objection Date”) to provide Notice to Seller, in writing, of such objections as Purchaser may have to any item
contained in the Title Commitment and any matter shown on the Survey (or any update thereto received prior to the Title Objection Date). Any item contained in the Title Commitment or any matter shown on the Survey to which Purchaser does not object
prior to the Title Objection Date shall be deemed a Permitted Exception. In the event Purchaser provides Notice to Seller of objections to any items contained in the Title Commitment or any matters shown on the Survey prior to the Title Objection
Date, Seller shall have the right, but not the obligation (except as otherwise provided below), to cure such objections. Within five (5) days after receipt of Purchaser’s notice of objections, Seller shall notify Purchaser in writing as to
whether Seller elects to attempt to cure such objections. Any failure by Seller to respond within five (5) days after receipt of Purchaser’s notice of objections shall be deemed a refusal by Seller to cure any objections to which a
response was not delivered. If Purchaser does not terminate this Agreement prior to the expiration of the Due Diligence Period pursuant to Section 2.3, all items contained in the Title Commitment or matters shown on the Survey, other than the
Required Deletion Items and those items or matters with respect to which Purchaser has objected and Seller has affirmatively elected to cure, shall be deemed Permitted Exceptions. The Permitted Exceptions shall, inter alia, include (and
Purchaser shall not be permitted to object to) any exceptions relating to interests and rights of parties in possession under any Leases or Resident Agreements, liens for all real estate taxes and assessments, water rates, water meter charges, sewer
rates, sewer charges 

  
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and similar matters imposed by any governmental authority and not yet due and payable as of the Closing Date, including special assessments and special improvement district or local improvement
district bonds, any and all present and future laws, ordinances, restrictions, requirements, resolutions, orders, rules and regulations of any governmental authority, as now or hereafter existing or enforced (including those related to zoning and
land use), and any exceptions caused by Purchaser, its agents, representatives or employees. If Seller elects to attempt to cure, and provided that Purchaser shall not have terminated this Agreement in accordance with Section 2.3 hereof, Seller
shall have until the Closing Date to attempt to remove, satisfy or cure the same and for this purpose Seller shall be entitled to a reasonable adjournment of the Closing if additional time is required, but in no event shall the adjournment exceed
thirty (30) days after the Closing Date. If Seller is unable to effect a cure prior to the Closing Date (or any date to which the Closing has been adjourned) then Purchaser shall have the option, in its sole discretion, to (a) accept a
conveyance of the Real Property subject to the Permitted Exceptions and any matter objected to by Purchaser that Seller is unable to cure, and without reduction of the Purchase Price or (b) terminate this Agreement by sending written notice
thereof to Seller, and upon delivery of such notice of termination, this Agreement shall terminate and the Deposit shall be returned to Purchaser. Following any termination of this Agreement in accordance with subsection (b) of the previous
sentence, neither party hereto shall have any further rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. Except as provided in
the next sentence, Seller shall have no obligation to bring any action or proceeding or otherwise to incur any expense to correct, discharge or otherwise remove title exceptions or defects with respect to the Property or to remove, remedy or comply
with any other grounds for Purchaser’s refusing to approve title. Seller shall, however, be obligated to remove or discharge, or otherwise cause the Escrow Agent to omit as an exception to title or to insure against collection thereof from or
against the Property, (y) any Existing Liens and (z) any liens and encumbrances created by through or under Seller after the Effective Date, that are not Permitted Exceptions (collectively, the “Required Deletion Items”).
If, on the Closing Date, there are any Required Deletion Items, Seller may use any portion of the Closing Payment to satisfy same, provided the Escrow Agent shall omit such lien or encumbrance as an exception to title. If Seller shall fail to
authorize the Escrow Agent to use the Closing Payment to satisfy a Required Deletion Item, and such Required Deletion Item therefore is not omitted as an exception to title, such failure shall be deemed to be a default by Seller, and Purchaser shall
have the remedies set forth in Section 11.2. 
 4.4 Conveyance of Title. At the Closing, Seller shall deliver to
Purchaser, in escrow through Escrow Agent, the Deed, subject to no exceptions other than the Permitted Exceptions. The acceptance by Purchaser of the Deed shall be deemed to be a full performance and discharge of every obligation on the part of
Seller to be performed under this Agreement with respect to the Property, other than those that are specifically stated herein or in any Closing Document to survive the Closing. 

  
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 V. 
 INSPECTIONS 
 5.1 Purchaser’s Independent Inspection.

 (a) Seller shall provide the full opportunity during the Due Diligence Period to inspect and investigate each
and every aspect of the Property, either independently or through agents, representatives or experts of Purchaser’s choosing, as Purchaser considers necessary or appropriate. Such independent investigation by Purchaser may include (but is not
limited to): 
 (i) all matters relating to title to the Property; 

(ii) all matters relating to Legal Requirements with respect to the Property, such as taxes, assessments, zoning, use
permit requirements and building codes; 
 (iii) all zoning, land use, building, environmental and other
statutes, rules, or regulations applicable to the Real Property; 
 (iv) the physical condition of the Real
Property, including the interior, the exterior, the square footage of the Improvements, the structure, the roof, the paving, the utilities, and all other physical, structural and functional aspects of the Real Property; 

(v) reports, studies, assessments, investigations and other materials related to the presence of Hazardous Materials at,
on or under the Real Property and the compliance of the Real Property with all Environmental Requirements, including environmental assessment reports; 
 (vi) any easements and/or access rights affecting the Real Property; 
 (vii) the form of Resident Agreement with respect to the Real Property; 
 (viii) the Material Contracts and Leases affecting the Property; 

(ix) all matters that would be revealed by a Survey, a physical inspection or an environmental site assessment of the Real
Property; and 
 (x) all matters relating to the income and operating or capital expenses of the Property and all
other financial matters. 
 (b) Except as expressly provided herein or in any Closing Documents, Seller makes no
representations or warranties as to the truth, accuracy or completeness of any materials, data or other information, if any, supplied to Purchaser in connection with Purchaser’s inspection of the Property (e.g., that such materials are
complete, accurate or the final version thereof, or that all such materials are in Seller’s possession). Except for 

  
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Purchaser’s reliance on any representation and warranties expressly provided herein, it is the parties’ express understanding and agreement that any such materials are to be provided
only for Purchaser’s convenience in making its own examination and determination as to whether it wishes to purchase the Property and, in doing so, Purchaser shall rely exclusively on its own independent investigation and evaluation of every
aspect of the Property and not on any materials supplied by Seller. Except for Purchaser’s reliance on any representation and warranties expressly provided herein or in any Closing Documents with respect to any such materials, Purchaser
expressly disclaims any intent to rely on any such materials provided to it by Seller in connection with its inspection and agrees that it shall rely solely on its own independently developed or verified information. 

(c) Purchaser acknowledges and agrees that (i) on or prior to the expiration of the Due Diligence Period it will have
completed its independent inspection and investigation of the Property and the Due Diligence Materials and (ii) it shall have no right after the expiration of the Due Diligence Period to terminate this Agreement based on any further
investigations of the Property or the Due Diligence Materials. The failure of Purchaser to send a Termination Notice prior to the expiration of the Due Diligence Period shall conclusively constitute Purchaser’s approval of each and every aspect
of the Property, subject to the terms and conditions of this Agreement. 
 5.2 Access. 

(a) Seller shall cooperate and provide Purchaser with reasonable access to the Real Property upon commercially reasonable
Notice to Seller for the purpose of Purchaser’s inspection (provided, however, that Purchaser shall not perform any invasive testing of the Real Property without Seller’s prior written consent in each instance, which may be granted or
withheld in Seller’s sole and absolute discretion). Neither Purchaser nor any of its employees, agents or representatives shall contact or otherwise discuss this transaction and/or the operation of the Facility with any on-site employees of the
Facility without Seller’s prior written consent; provided, however, that Purchaser may meet with the Facility’s Executive Director upon commercially reasonable Notice to Seller but, if required by Seller, only in the presence of
Seller’s representative. Seller shall have the right to have a representative of Seller present during all inspections or examinations of the Real Property by Purchaser. Prior to any entry by Purchaser or any of Purchaser’s designees onto
the Property, Purchaser shall: (i) if Purchaser does not then have such a policy in force, procure a policy of commercial general liability insurance, issued by an insurer reasonably satisfactory to Seller, covering all Purchaser’s
activities, with a single limit of liability (per occurrence and aggregate) of not less than Two Million and No/100 Dollars ($2,000,000.00); and (ii) deliver to Seller a Certificate of Insurance, evidencing that such insurance is in force and
effect, and evidencing that Seller have been named as an additional insured thereunder with respect to any Purchaser’s activities. Such insurance shall be written on an “occurrence” basis, and shall be maintained in force until the
earlier of (x) the termination of this Agreement and the conclusion of all of Purchaser’s activities on the Property, or (y) the Closing Date. 

  
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 (b) Purchaser, at all times, will conduct all inspections and reviews in
compliance with all Legal Requirements, and in a manner so as to not cause damage, loss, cost or expense to Seller, the Property or the residents of the Property, and without unreasonably interfering with or disturbing any employee or resident at
the Facility. Prior to Closing, the results of or any other information acquired pursuant to Purchaser’s inspections shall be subject to the terms and conditions of Section 14.16 below. Purchaser will promptly restore any damage to the
Property caused by Purchaser’s inspection to substantially the same condition immediately preceding such inspections and examinations and will keep the Property free and clear of any mechanic’s liens or materialmen’s liens caused by
Purchaser or its representatives in connection with such inspections and examinations. 
 (c) The cost of the
inspections and tests undertaken pursuant to this Section 5.2 shall be borne solely by Purchaser. 
 5.3 Confidential
Nature of Due Diligence Materials. Purchaser covenants and agrees that, until the Closing Date, all information and materials disclosed and/or delivered to it by Seller, or Seller’s agents, employees and representatives (including without
limitation, the Due Diligence Materials), are confidential and proprietary information, and that Purchaser shall hold the same in accordance with the terms and conditions of Section 14.16 below. Purchaser also agrees that, in the event the
transaction contemplated in this Agreement is not consummated as provided herein, Purchaser shall promptly return to Seller or notify Seller in writing that Purchaser has destroyed all such information and documentation and all copies thereof other
than any copies required to be retained to comply with Purchaser’s internal records retention policy, which copies shall continue to be subject to the terms of Section 14.16. 

5.4 Continuing Nature of Purchaser’s Obligations. The obligations of Purchaser under this Article V (including its
indemnification obligations under Section 8.1(a)) shall survive Closing or the termination of this Agreement. 
 VI.

 PROPERTY 
 6.1 Condition of Property. THE FOLLOWING PROVISIONS IN THIS SECTION 6.1 ARE SUBJECT TO THE EXPRESS REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS, AND OTHER PROVISIONS OF THIS AGREEMENT
(INCLUDING WITHOUT LIMITATION THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9.2) AND THE CLOSING DOCUMENTS: 
 (a) BY ENTERING INTO THIS AGREEMENT, PURCHASER HAS AGREED TO, AND WILL, PERFORM (AND PURCHASER REPRESENTS AND WARRANTS TO SELLER THAT PURCHASER IS CAPABLE OF PERFORMING) AN INDEPENDENT INVESTIGATION,
ANALYSIS AND EVALUATION OF THE PROPERTY. PURCHASER WILL CONDUCT ITS OWN THOROUGH AND INDEPENDENT INSPECTION, INVESTIGATION, ANALYSIS AND EVALUATION OF ALL INSTRUMENTS, RECORDS AND DOCUMENTS WHICH PURCHASER DETERMINES TO BE APPROPRIATE OR ADVISABLE
TO REVIEW IN CONNECTION WITH PURCHASER’S ACQUISITION OF THE PROPERTY AND THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. 

  
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 (b) PURCHASER FURTHER ACKNOWLEDGES THAT PURCHASER HAS SUBSTANTIAL EXPERIENCE
WITH REAL PROPERTY AND SENIOR LIVING FACILITIES AND THEIR OPERATIONS, AND THAT PURCHASER WILL ACQUIRE THE PROPERTY IN “AS IS, WHERE IS, WITH ALL FAULTS” CONDITION, AND SOLELY IN RELIANCE ON PURCHASER’S OWN INSPECTION AND EXAMINATION
AND SELLER’S REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED HEREIN OR IN ANY CLOSING DOCUMENTS. 
 (c)
EXCEPT AS TO THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CLOSING DOCUMENTS, IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT SELLER MAKES NO REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND, NATURE OR SORT,
EXPRESS OR IMPLIED, WITH RESPECT TO THE PHYSICAL CONDITION, PAST, PRESENT OR FUTURE OPERATION AND/OR PERFORMANCE, OR VALUE, OF THE PROPERTY AND THAT SELLER CONVEYS THE PROPERTY TO PURCHASER “AS IS AND WHERE IS, WITH ALL FAULTS,” AND
PURCHASER ACKNOWLEDGES THAT SELLER MAKES NO REPRESENTATIONS, GUARANTIES OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE QUALITY, CHARACTER, EXTENT, PERFORMANCE, CONDITION OR SUITABILITY OF THE PROPERTY FOR ANY PURPOSE. 

(d) PURCHASER’S INSPECTION, INVESTIGATION AND SURVEY OF THE PROPERTY SHALL BE IN LIEU OF ANY NOTICE OR DISCLOSURE
REQUIRED BY ANY APPLICABLE HEALTH AND SAFETY CODE, OR BY ANY OTHER PROVISION OF APPLICABLE LAW, RULE OR REGULATION, INCLUDING, WITHOUT LIMITATION, LAWS REQUIRING DISCLOSURE BY SELLER OF FLOOD, FIRE, MOLD, SEISMIC HAZARDS, LEAD PAINT, LANDSLIDE AND
LIQUEFACTION, OTHER GEOLOGICAL HAZARDS, RAILROAD AND OTHER UTILITY ACCESS, SOIL CONDITIONS AND OTHER CONDITIONS WHICH MAY AFFECT THE USE OF THE REAL PROPERTY, AND PURCHASER HEREBY WAIVES ANY REQUIREMENT FOR A NOTICE PURSUANT TO THOSE PROVISIONS AND
HEREBY ACKNOWLEDGES AND AGREES THAT IT WILL CONDUCT ITS OWN INSPECTIONS AND REVIEWS WITH RESPECT TO ALL MATTERS COVERED THEREBY, AND HEREBY RELEASES SELLER FROM LIABILITY IN CONNECTION WITH ANY SUCH MATTERS THAT ARE NOT THE SUBJECT OF ANY OF
SELLER’S COVENANTS REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN OR ANY CLOSING DOCUMENTS. 

  
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 (e) PURCHASER ALSO ACKNOWLEDGES AND AGREES THAT, ALTHOUGH SELLER HAS
PROVIDED TO PURCHASER THE DUE DILIGENCE MATERIALS AND THE BOOKS AND RECORDS, SELLER HAS NOT VERIFIED THE ACCURACY THEREOF AND MAKE NO REPRESENTATIONS OR WARRANTIES REGARDING THE MATTERS SET FORTH THEREIN EXCEPT AS MAY BE EXPRESSLY SET FORTH HEREIN
OR ANY CLOSING DOCUMENTS, IT BEING THE RESPONSIBILITY OF PURCHASER TO VERIFY THE ACCURACY OF SUCH MATERIALS. 

(f) FURTHERMORE, EXCEPT AS TO THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CLOSING
DOCUMENTS, PURCHASER ACKNOWLEDGES THAT SELLER HAS NOT AND DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THE PRESENCE OR INTEGRATION OF HAZARDOUS MATERIALS UPON OR WITHIN THE REAL PROPERTY. IN THAT REGARD, PURCHASER WILL CONDUCT
ITS OWN INVESTIGATIONS TO DETERMINE IF THE REAL PROPERTY CONTAINS ANY HAZARDOUS MATERIALS OR TOXIC WASTE, MATERIALS, DISCHARGE, DUMPING OR CONTAMINATION, WHETHER SOIL, GROUNDWATER OR OTHERWISE, WHICH VIOLATES ANY FEDERAL, STATE, LOCAL OR OTHER
GOVERNMENTAL LAW, REGULATION OR ORDER OR REQUIRES REPORTING TO ANY GOVERNMENTAL AUTHORITY. 
 BY INITIALING THIS CLAUSE BELOW, PURCHASER
ACKNOWLEDGES THAT THIS ARTICLE HAS BEEN READ AND FULLY UNDERSTOOD, AND THAT PURCHASER HAS HAD THE CHANCE TO ASK QUESTIONS OF ITS COUNSEL ABOUT ITS MEANING AND SIGNIFICANCE. 

 

					
		 	                /s/
TBB                	 	
		 	PURCHASER’S INITIALS	 	

 6.2 Survival of Article VI. THE PROVISIONS OF THIS ARTICLE VI SHALL SURVIVE CLOSING. 

VII. 

CLOSING 

7.1 Closing Date. The “Closing Date” for purposes of this Agreement shall be the date which is fifteen
(15) days after the expiration of the Due Diligence Period, or such earlier date as may be agreed upon, in writing, by Seller and Purchaser; subject, however, to (i) the automatic extension of the Closing Date as set forth in
Section 8.1(b) herein, and (ii) Seller’s right, at its option, to extend the Closing Date as set forth in Section 4.3 and Section 9.4 herein. 

  
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 7.2 Action Prior to the Closing Date by Seller. Seller agrees that, provided
Purchaser has complied with its obligations under Section 7.3 hereof, on or before 1:00 p.m. (Eastern Time) on the Closing Date, Seller will deposit with Escrow Agent such items and instruments (executed and acknowledged, if appropriate) as may
be necessary in order for Escrow Agent to comply with this Agreement, including, without limitation, the following: 
 (a) A special warranty deed substantially in the form and content attached hereto as Exhibit “C” prepared and executed by Seller and acknowledged before a Notary Public in the manner
provided under the laws of the State of Oklahoma, reflecting the sale and transfer to Purchaser of the Real Property and the Improvements owned by Seller (the “Deed”), subject only to the Permitted Exceptions. 

(b) Two (2) duplicate originals of a Bill of Sale, in the form and content attached hereto as Exhibit
“D”, prepared and executed by Seller assigning, conveying and transferring to Purchaser the Personal Property owned by Seller (“Bill of Sale”); 

(c) Two (2) duplicate originals of an Assignment and Assumption of Intangible Property, in the form and content
attached hereto as Exhibit “E”, prepared and executed by Seller assigning and conveying to Purchaser, at no cost or expense to Seller and without representation or warranty (other than as expressly set forth herein), all of
Seller’s right, title and interest in the Intangible Property owned by Seller (“Assignment and Assumption of of Intangible Property”); 
 (d) Two (2) duplicate originals of an Assignment and Assumption of Leases and Contracts, in the form and content attached hereto as Exhibit “F”, prepared and executed by Seller
assigning and conveying to Purchaser, at no cost or expense to Seller and without representation or warranty (other than as expressly set forth herein), all of Seller’s right, title and interest under the Leases and Assumed Contracts relating
to the Property (“Assignment and Assumption of Leases and Contracts”); 
 (e) Two
(2) duplicate originals of an Assignment and Assumption of Resident Agreements, in the form and content attached hereto as Exhibit “G”, prepared and executed by Seller assigning and conveying to Purchaser, at no cost or expense
to Seller and without representation or warranty (other than as expressly set forth herein), all of such right, title and interest under the Resident Agreements (including any pre-paid rents attributable to the time period on and after the Closing
Date and/or refundable security deposits thereunder) relating to the Facility (“Assignment and Assumption of Resident Agreements”); 
 (f) A non-foreign affidavit, in the form and content attached hereto as Exhibit “H”, prepared and executed by Seller (“Non-Foreign Affidavit”), any state tax withholding
affidavits as applicable, and an IRS Form 1099; 
 (g) A Bringdown Certificate executed by a duly authorized
officer of Seller certifying to Purchaser that, as of the Closing Date, the representations and warranties made by Seller set forth in Section 9.2 of the Agreement remain true and correct in all material respects. 

(h) All transfer tax and other tax returns, if any, which Seller is required by law to execute and acknowledge and to
deliver, either individually or together with Purchaser, to any governmental authority as a result of the sale, if and to the extent the same are available as of the Closing Date; 

  
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 (i) All of the plans (including “as built” plans), drawings,
blueprints and specifications relating to the Property where available, which are in Seller’s possession or control; 
 (j) All written warranties of manufacturers, suppliers and contractors, if any, in possession or control of Seller and in effect on the Closing Date; 

(k) All keys to the Property which are in the possession or control of Seller (which will be available at the Facility);

 (l) A closing statement prepared by Escrow Agent and reasonably approved by Seller and Purchaser setting
forth, among other things, all payments to and from Escrow in connection with the purchase and sale of the Property (the “Closing Statement”); 
 (m) One (1) original of the owner’s affidavit (including a gap indemnity), in the form attached hereto as Exhibit “I”, prepared and executed by Seller. 

(n) All other documents consistent with the express provisions of this Agreement and reasonably required by Escrow Agent
(including without limitation, evidence reasonably satisfactory to Escrow Agent that all necessary authorizations of the transaction contemplated hereby have been obtained by Seller), each in form and substance reasonably acceptable to Seller;

 (o) A form Notice to Residents, in the form and content attached hereto as Exhibit “J,”
prepared and executed by Seller (collectively, the “Notices to Residents”); 
 (p) For the
Licensed Facility, two (2) duplicate originals of a Bridging Lease, if applicable, pursuant to and as defined in Section 8.4(b) below, prepared and executed by Seller; 

(q) For the Licensed Facility, two (2) duplicate originals of a Bridging Management Agreement, if applicable,
pursuant to and defined in Section 8.4(b) below, prepared and executed by Seller; 
 (r) Any documents or
certificates necessary to transfer title to, or leasehold interests in, any motor vehicles being conveyed in connection herewith, each of which will be located at the Property; 

(s) To the extent not previously delivered to Purchaser and within the possession or control of Seller or its Affiliates,
originals (or copies, if originals are not available) of all items within the Due Diligence Materials (including, to the extent available, originals of all Resident Agreements, Assumed Contracts, and Permits and copies of all resident correspondence
and billing files and records), which need not be deposited with Escrow Agent but instead may be left at the Facility; 
 (t) Any releases necessary to extinguish the Existing Liens, as required hereby; 

  
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 (u) A termination of property management agreement executed by Seller and
the existing property manager of the Facility. 
 (v) Evidence that Seller has sent termination notices with
respect to any Rejected Contracts relating to the Facility owned by Seller, as applicable; and 
 (w) Such other
instruments or documents as may be reasonably necessary to effect or carry out the covenants and obligations to be performed by Seller pursuant to this Agreement. 
 7.3 Action Prior to the Closing Date by Purchaser. Purchaser agrees that on or before 1:00 p.m. (Eastern Time) on the Closing Date, Purchaser will deposit with Escrow Agent the Closing Payment and
all documents (executed and acknowledged, if appropriate) necessary to comply with the terms of this Agreement, including without limitation: 
 (a) To the extent that applicable law requires that the Deed, transfer tax or other tax forms, or recording forms be executed by the grantee, such instruments shall be executed by Purchaser and
acknowledged in the presence of a Notary Public in accordance with the laws of the State of Oklahoma; 
 (b) If
applicable, pursuant to Section 14.4 below, for the Property, two (2) fully executed duplicate originals of the Assignment of Purchase Contract to Applicable Property executed by Purchaser and its assignee in the form and content attached
hereto as Exhibit “K”; 
 (c) Two (2) duplicate originals of the Assignment and Assumption
of Intangible Property, executed by Purchaser; 
 (d) Two (2) duplicate originals of the Assignment and
Assumption of Leases and Contracts executed by Purchaser; 
 (e) Two (2) duplicate originals of the
Assignment and Assumption of Resident Agreements executed by Purchaser; 
 (f) A Bringdown Certificate executed
by a duly authorized officer of Purchaser certifying to Seller that, as of the Closing Date, the representations and warranties made by Purchaser set forth in Section 9.1 of the Agreement remain true and correct in all material respects.

 (g) An executed Closing Statement; 

(h) For the Licensed Facility, two (2) fully executed duplicate originals of the Bridging Lease, if applicable,
pursuant to Section 8.4(b) below, executed by Purchaser; 
 (i) For the Licensed Facility, two
(2) fully executed duplicate originals of the Bridging Management Agreement, if applicable, pursuant to Section 8.4(b) below, executed by Purchaser; and 

(j) Such other funds, instruments or documents as may be reasonably necessary to effect or carry out the covenants and
obligations to be performed by Purchaser pursuant to this Agreement. 

  
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 7.4 Recording of Deeds. Subject to Section 10.3 below, Escrow Agent will cause
the Deed to be dated as of the Closing Date and thereafter promptly recorded in the Official Records, and all other conveyance documents deposited with Escrow Agent to be dated as of the Closing Date, when (but in no event after the Closing Date)
Escrow Agent (i) is prepared to issue the title insurance policy to be issued to Purchaser as contemplated in this Agreement, and (ii) holds for the account of Seller and Purchaser all items and funds (if any) to be delivered to Seller and
Purchaser through the Escrow, after payment of costs, expenses, disbursements and prorations chargeable to Seller or Purchaser pursuant to the provisions of this Agreement. 
 7.5 Prorations. 
 (a) All non-delinquent real estate and
personal property general and special taxes and assessments for the Property and the Land for the current assessment year of the applicable taxing authority in which the Closing Date occurs shall be prorated as of the Closing Date. If the exact
amount of taxes is not known at Closing, the proration will be based on an amount equal to one hundred five percent (105%) of the prior assessment year’s taxes and shall be adjusted directly between Seller and Purchaser once actual figures
become available after Closing. Notwithstanding anything to the contrary in this Agreement, (i) Seller shall retain all right, title and interest in and to any and all property tax (both real property and personal property) refunds and claims
for refunds with respect to the Property for any period prior to the Closing Date, and (ii) Seller is responsible for all taxes due and payable prior to the Closing Date in connection with the Property. Purchaser shall assume all obligations
accruing from and after the Closing Date with respect to any agreements relating to the appealing of real estate taxes or real estate tax assessments, including the obligation to pay portions of amounts of real estate tax savings and costs and
expenses related thereto. With respect to the Property, Seller shall be responsible for all sales, use and other transfer taxes imposed in connection with the sale and transfer of the Personal Property and the Intangible Property. 

(b) Seller shall request each utility company providing utility service to the Real Property to cause all utility billings
to be closed and billed as of the Closing Date in order that utility charges may be separately billed for the period prior to the Closing Date and the period on and after the Closing Date. In the event any such utility charges are not separately
billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred during the billing period in which the Closing Date occurs. Seller shall receive a credit at Closing for any
Utility Deposits with respect to the Facility that are transferred or made available to Purchaser. Purchaser shall arrange for placing all utility services and bills in its own name as of the Closing Date. 

(c) All revenues from Facility operations accruing or relating to the period up to and including 11:59 p.m. in the
jurisdiction in which the Property is located on the day immediately preceding the Closing Date (“Cut-Off Time”) shall belong to Seller. All revenues from Facility operations accruing or relating to the period after the Cut-Off Time
shall belong to Purchaser. Without limiting the foregoing, it is the agreement and intent of the parties that all revenues shall be prorated as of the Closing Date. 

  
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 (d) All obligations and liabilities and accounts payable for the Facility
and the Real Property owing as of the Closing Date for merchandise, equipment, supplies and other materials and services paid, incurred or ordered shall be prorated between Seller and Purchaser as of the Closing Date based on whether the
merchandise, equipment, supplies and other materials remain in inventory as of the Closing Date and when the services were, or are, be rendered, i.e., prior to, or on or after the Closing Date. 

(e) Except as covered by the terms of Section 7.5(a) above, all water and sewer charges, taxes (other than ad valorem
property taxes), and any unpaid taxes payable in arrears, shall be prorated as of the Closing Date. Seller will be credited for that portion of taxes and fees paid by Seller allocable to the period after the Closing Date. 

(f) All payments and receipts, as applicable, under the Assumed Contracts shall be prorated between Purchaser and Seller
as of the Closing Date. Seller shall receive a credit for all prepayments and deposits thereunder which are transferred to Purchaser. In consideration for Purchaser’s agreement to honor (i) any written policy currently in place at the
Facility with respect to waitlist deposits or (ii) the terms of those Assumed Contracts entered into by and between Seller and a prospective resident (i.e., to admit the prospective resident as a resident of the Facility on the same terms and
conditions as such prospective resident would have been admitted to the Facility had Seller still owned the Facility), Purchaser shall receive a credit for all waitlist deposits made by prospective residents. 

(g) All other income derived by Seller from the Property accruing or relating to the period up to and including the
Cut-Off-Time shall be paid to Seller. All other income derived by Seller from the Property accruing or relating to the period on and after the Cut-Off-Time shall be paid to Purchaser. 

(h) Subject to Section 7.5(i) below, the Accounts Receivable shall be and remain the property of Seller subsequent to
the Closing of the transaction contemplated hereby. At the Closing, Seller shall prepare a list of its outstanding Accounts Receivable as of the Cut-Off Time, specifying the name of each account and the amount due to it. Purchaser shall hold in
trust for Seller any funds which are received by Purchaser as payment of Seller’s Accounts Receivable, i.e., if Purchaser actually collects any such amounts, Purchaser shall pay the monies collected in respect thereof (net of actual collection
costs) to Seller promptly following the end of the calendar month in which such amounts are collected, accompanied by a statement showing the amount collected on each such account. Other than the foregoing, Purchaser shall have no obligation with
respect to any such account, and Purchaser shall not be required to take any legal proceeding or action to effect collection on behalf of Seller. It is the intention of Purchaser and Seller that although the Accounts Receivable shall be and remain
the property of Seller, if any such accounts are paid to Purchaser, then Purchaser shall collect same and remit to Seller in the manner above provided. Nothing herein contained shall 

  
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be deemed to preclude Seller from enforcing collection of the Accounts Receivable which are owed to Seller; provided, in no event shall Seller be entitled to commence termination or eviction
proceedings with respect to any Lease or Resident Agreement. The provisions of this Section shall survive Closing. 
 (i) All rentals and other resident charges, including any community fees and reimbursements, in respect to the month in which the Closing Date occurs (the “Current Month”) shall be
prorated as of the Cut-Off Time, whether or not actually received prior to the Closing Date. All rentals and other charges received by Purchaser from a resident under a Resident Agreement or a tenant under a Lease after the Closing Date that are not
Seller’s Accounts Receivable shall be applied first to collection costs and then to the most recently accrued obligation of such resident or tenant, as applicable. After application as set forth above, Purchaser shall promptly remit to Seller
that portion of rentals and other resident charges received after the Closing Date attributable to periods prior to the Cut-Off Time. Notwithstanding any language to the contrary herein, (i) to the extent that Seller receives any payment with
respect to the Licensed Facility that was owned by Seller after the Cut-Off Time from a third-party payor that relates to periods after the Cut-Off Time, Seller shall hold in trust for Purchaser such funds and pay such funds to Purchaser promptly
following the end of the calendar month in which such funds are collected and (ii) to the extent that Purchaser receives any payment with respect to the Licensed Facility after the Cut-Off Time from a third-party payor that relates to periods
before the Cut-Off Time, Purchaser shall hold in trust for Seller such funds and pay such funds to Seller at the end of the calendar month in which such funds are collected. Seller shall retain, with respect to the Property, the right to pursue
directly collection of amounts due on account of the period prior to the Cut-Off Time, provided, in no event shall Seller be entitled to commence termination or eviction proceedings with respect to any Lease or Resident Agreement. 

(j) Purchaser shall receive a credit for (a) prepaid rents and other resident charges, including any community fees,
applicable to periods after the Cut-Off Time, and (b) any refundable security deposits (and if Legal Requirements or any agreements require a landlord to be accountable for interest on such refundable security deposits, any accrued interest
owed thereon), which credit shall be applied against the Purchase Price. 
 (k) Except as otherwise expressly
provided in this Agreement, all apportionments and adjustments shall be made in accordance with generally accepted accounting principles. The computation of the adjustments shall be jointly prepared by Seller and Purchaser. In the event any
prorations or apportionments made under this Section 7.5 shall prove to be incorrect for any reason, then any party shall be entitled to an adjustment to correct the same in accordance with the remaining terms of this Section 7.5(k). To
the extent the exact amount of any adjustment item provided for in this Section 7.5 cannot be precisely determined on the Closing Date, such prorations and apportionments shall be tentatively prorated on the basis of the best data then
available and re-prorated when the information is available. Notwithstanding the foregoing, any adjustment or re-proration pursuant to the two immediately preceding sentences shall be made, if at all, within one hundred eighty (180) days after
the Closing Date (except with respect to taxes and assessments, in which case such re-proration shall be made within 

  
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sixty (60) days after the information necessary to perform such re-proration is available). All payments to be made as a result of the final results of the adjustments shall be paid to the
party entitled to the same within thirty (30) days after the final determination thereof. Seller and Purchaser agree that none of the insurance policies relating to the Property will be assigned to Purchaser (and Seller shall pay any
cancellation fees or minimum earned premiums resulting from the termination of the policies relating the Property) and Purchaser shall be responsible for arranging for its own insurance as of the Closing Date. 

7.6 Closing Costs. With respect to the title insurance policy insuring Purchaser’s title to the Property, Purchaser shall
bear the cost of the premium for the title insurance policy, including the cost of any and all endorsements to the title insurance policy requested by Purchaser or its lender. Purchaser shall bear the cost of any update to the Survey obtained by
Purchaser, the cost to record the Deed (including the nominal per page recording fees but excluding the documentary stamps to be placed on the Deed) and one-half of all escrow and closing fees relating to the sale of the Property imposed by Escrow
Agent. Seller shall pay any compensation due to Financial Advisor, the cost of the documentary stamps to be placed on the Deed) and one-half (1/2) of all escrow and closing fees relating to the sale of the Property (but, in each case, not in
connection with any financing by Purchaser, which shall be paid solely by Purchaser). Each party shall pay its own attorneys’ fees pertaining to the sale of the Property. Purchaser shall be responsible for the payment of any mortgage taxes or
recording fees for the mortgage securing Purchaser’s loan. All other costs pertaining to the sale of the Property shall be allocated as is customary for real estate transactions where the Property is located. 

7.7 Possession. Purchaser shall be entitled to sole possession of the Property on the Closing Date, subject to the possessory
rights of any resident of the Facility and the terms of the Leases and Assumed Contracts. 
 7.8 Post-Closing Audit.
Seller acknowledges and agrees to assist Purchaser in conducting, no later than seventy-four (74) days following the Closing Date, an audit of property-level financials for the Property as specified by Rule 3-05 of Regulation S-X of the
Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, provided such audit shall be at the sole cost and expense of Purchaser. In connection therewith, Seller agrees to obtain and provide to the auditors, at no cost
to Seller, any and all data and financial information, except for information constituting Excluded Assets, in the possession of Seller that are necessary or required by the auditors in connection with their preparation and conducting of the
foregoing audit. The rights and obligations of Purchaser and Seller under this Section 7.8 shall survive Closing. 
 VIII.

 ADDITIONAL COVENANTS AND INDEMNITIES 
 8.1 Purchaser’s Covenants. 
 (a) Purchaser covenants
and agrees to defend, indemnify, protect, defend, and hold harmless Seller, and its affiliates, owners, members, partners, employees, lenders, agents and representatives, from and against any and all Claims (i) arising from the acts


  
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and omissions of Purchaser and its agents, employees and contractors occurring in connection with or as a result of, any inspections, tests or examinations of or to the Property prior to the
Closing Date, and (b) caused by or arising out of any material misrepresentation by Purchaser in connection with this Agreement. This indemnity shall survive Closing for the Survival Period. 

(b) Prior to Closing, Purchaser shall use its commercially reasonable efforts to apply for and diligently pursue all
required licenses and approvals necessary to permit Purchaser to operate the Licensed Facility as an assisted living and Alzheimer’s care facility (“Purchaser Permits”). In furtherance of the preceding sentence, Purchaser shall
use commercially reasonable efforts to file all applications and other documents required by the applicable governmental or administrative agency or authority for all such required Purchaser Permits as soon as reasonably practical and, in all
events, on or prior to the date which is thirty (30) days after the Effective Date (the “Filing Date”). In addition, Purchaser shall file as soon as reasonably practical and, in all events, on or prior to the Filing Date, any
documentation (including, to the extent required, the Bridging Lease and the Bridging Management Agreement) necessary to permit the current license-holder for the Licensed Facility to remain in place pending confirmation by the Oklahoma Department
of Health that the parties can consummate the transaction contemplated by this Agreement with respect to the Licensed Facility. In the event that Purchaser has not received confirmation from the Oklahoma Department of Health that the parties can
consummate the transaction contemplated by this Agreement with respect to the Licensed Facility prior to the Closing Date, the terms of Section 8.4 below shall control. As more particularly described on Schedule “9.2(h)”
attached hereto, the assisted living center license expired on September 19, 2012, and Seller is awaiting receipt of a renewal license from the Oklahoma State Department of Health. Notwithstanding anything herein to the contrary, if the renewal
license has not been received on or prior to the Filing Date, the Filing Date shall be extended until one (1) business day following the receipt of the renewal license, provided, however, that in no event shall the Filing Date be extended
beyond the expiration of the Due Diligence Period. If the Filing Date is extended pursuant to the immediately preceding sentence, the Closing Date shall be extended for the same number of days as the Filing Date was extended. 

8.2 Seller Covenants. Seller (but solely for itself and its own Property, and not for any other Seller or any other Property)
covenants to Purchaser as follows: 
 (a) Subject to the terms of this Agreement, Seller, during the term of this
Agreement, shall carry on the business and operations of the Facility in substantially the same manner as heretofore carried on by it including incurring operating expenses consistent with past practices. Seller shall, during the term of this
Agreement, use commercially reasonable efforts to comply in all material respects with all Legal Requirements affecting the Property and all terms, covenants and conditions of any Assumed Contracts, Leases, Resident Agreements or other Business
Agreements affecting the Property. Prior to the Closing Date, Seller shall maintain (or replace with policies of like amounts) all existing insurance policies insuring its Property and the operation of the Facility. Seller shall maintain its
Inventory consistent with its past practices and shall replenish the same consistent with its past practices. Seller may 

  
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extend, amend, modify or terminate any of the Contracts relating to its Property as it deems appropriate to operate, service and maintain its Property consistent with normal business practices,
and may enter into new Contracts; provided, however, that so long as Purchaser is not in default of any of its obligations under this Agreement beyond the expiration of any applicable notice or cure period, then Seller shall not without the written
consent of Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed), enter into (i) any new Contract or amend or modify any existing Contract that would be binding on Purchaser or the Real Property following the
Closing other than those involving payments of less than Five Thousand and No/100 Dollars ($5,000.00) per annum or which are terminable with not more than sixty (60) days’ notice without penalty except to the extent such amendment or
modification is required under the Legal Requirements, or (ii) any additional Business Agreements or Resident Agreements or amend or modify any existing Business Agreement or Resident Agreement affecting its Property that would be binding on
Purchaser following Closing (other than new Resident Agreements, renewals or modifications of existing Resident Agreements and Leases entered into in the ordinary course of business at its Property, which, in the case of Resident Agreements, shall
be on the standard form of resident lease for the Facility, and at rental rates, promotional allowances, concessions, length of term and on other terms and conditions consistent in all material respects with past practices), except to the extent
such amendment or modification is required under the Legal Requirements. Other than in the ordinary course of business at its Property, no part of Seller’s Property, or any interest therein, will be sold or otherwise transferred or encumbered
without Purchaser’s prior written consent, which approval shall not be unreasonably withheld or delayed. 

(b) Seller shall cooperate with Purchaser in all commercially reasonable respects, including by executing and/or
delivering necessary or desirable applications and other information and documents, to facilitate the issuance and/or transfer of the Purchaser Permits (as defined in Section 8.1(b) above). Without limiting the foregoing, Seller shall cause New
Manager to provide such information and documents as may be required of New Manager in connection with Purchaser’s application for the Purchaser Permits, which shall include causing New Manager to file, as soon as reasonably practical and, in
all events, on or prior to the date which is thirty (30) days after the Effective Date, any documentation necessary to report to the Oklahoma Department of Health the change of property manager from the property manager as of the Effective Date
to New Manager. If Purchaser requests Seller or New Manager to advance (or otherwise consents to the advancement of) any governmental or other administrative agency fees in connection with such cooperation, Purchaser shall promptly reimburse Seller
or New Manager, as applicable, for any such fees so advanced on behalf of Purchaser. In the event that Purchaser has not received confirmation from the Oklahoma Department of Health that the parties can consummate the transaction contemplated by
this Agreement with respect to the Licensed Facility prior to the Closing Date, Seller agrees to implement a Bridging Lease and Bridging Management Agreement pursuant to Section 8.4 below that permit the consummation of the transaction
contemplated by this Agreement in accordance with all Legal Requirements in the absence of such confirmation. 

  
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 (c) Seller shall promptly notify Purchaser to the extent Seller receives
written notice from a third party or otherwise acquires knowledge of any event or occurrence that could be reasonably anticipated to have a material adverse effect on the operation, leasing, or condition of the Property, including fire or other
casualty loss, or receipt of notice of condemnation or violation of any Legal Requirement or order, including without limitation, any Legal Requirement relating to health, safety, fire, environmental or zoning that could be reasonably anticipated to
have a material adverse effect on the operation, leasing, or condition of the Property. 
 (d) Until such time as
this Agreement terminates, Seller shall not solicit or initiate any inquiries or proposals from, negotiate with, or consider the merits of any inquiries or proposals from, any person relating to any sale of the Property. 

8.3 Employee Matters. With respect to the Property: 

(a) On the Closing Date, Seller shall pay the applicable employees or (at Purchaser’s election) credit Purchaser with
all employee salaries, wages, and other compensation (including accrued vacation days but not including sick leave), including any applicable federal, state and local taxes, for any employees of the Facility that have accrued up to the Cut-Off Time
and remain unpaid. Subject to the provisions of Sections 8.3(b), Seller shall indemnify, defend and hold harmless Purchaser against any and all labor or employment claims, liabilities or obligations (including, without limitation, reasonable
attorneys’ fees and costs) that arise or accrue before, or arise out of events occurring before, the Closing Date, which indemnity shall survive Closing. Purchaser shall be responsible for any severance pay due to any employees who accept
employment with Purchaser or New Manager as of Closing and who Purchaser later elects to terminate on or after the Closing Date. Seller shall cooperate with New Manager to effectuate the transition of the employment of the employees of the
Facilities to New Manager upon Closing. 
 (b) On or before the day that is five (5) days after the end of
the Due Diligence Period, Seller shall provide Purchaser with a list of all employees at the Property and, to the extent permitted under the applicable Legal Requirements, access to other pertinent information as reasonably requested by Purchaser
(including, to the extent permitted under the applicable Legal Requirements, access to review the employee file and information on the terms of employment of each employee). After the expiration of the Due Diligence Period, except with respect to
the Facility’s Executive Director (access to whom is governed by the terms of Section 5.2), Seller shall afford Purchaser with opportunities to meet with any employees of Seller or New Manager who are involved in the operation of the
Facility and the Property. Such meetings shall be at such times as mutually agreed to by Seller and Purchaser and Seller shall be entitled to have a representative present at any such meetings with the employees at the Property. As of the Closing
Date, Purchaser shall instruct New Manager to offer employment to a sufficient number of the then-current employees of the Facility (and to hire those employees who accept such offers) such that no notices shall be required or due to any person or
entity under the federal Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any other comparable state law. Nothing in this Section 8.3(b) shall, however, create


  
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any rights in favor of any person not a party to this Agreement, including employees of the Facility, or constitute an employment agreement or condition of employment for any employee of Seller
(or its property manager) or any affiliate of Seller (or its property manager) who is hired by Purchaser. Purchaser shall indemnify, defend and hold harmless Seller, and its Affiliates, owners and employees from and against (i) any and all
claims, penalties, damages, liabilities, actions, costs and expenses (including reasonable attorneys’ fees) under the WARN Act or any comparable state law, to the extent that such claims, penalties, damages and expenses arise in connection with
Purchaser’s failure to comply with the provisions of this Section 8.3(b) and (ii) any and all labor or employment claims, liabilities and obligations (including, without limitation, reasonable attorneys’ fees and costs) that
arise or accrue from or after, or arise out of events occurring from or after the Closing Date, including, without limitation, all claims arising as a result of the termination by Purchaser of the Facility employee or personnel performing services
at or for the Facility. The foregoing indemnity shall survive Closing. 
 (c) Seller shall and hereby agree to
indemnify and save Purchaser, and its Affiliates and property managers, harmless from and against any liability for wages, salaries, bonuses, and accrued vacation days to be paid to employees on account of services rendered prior to Closing, except
to the extent the same is credited to Purchaser pursuant to Section 8.3(a) above for any employees retained by Purchaser or New Manager following Closing. Notwithstanding anything to the contrary herein contained, there shall be no
apportionment or proration of medical, pension, welfare benefits, other employee benefits or other fringe benefits (hereinafter collectively referred to as “benefits”) and Seller shall remain liable for and hereby indemnify and save
Purchaser, and its affiliates, harmless from and against all benefits due to employees under plans in which employees participate prior to Closing, and all payments due on the plans providing such benefits. Seller agrees to give all affected
employees written notice of termination of participation of employees working at the Property in any applicable 401(K) or other pension or retirement plan affecting the employees. The obligations of Seller and Purchaser set forth in this
Section 8.3 shall survive Closing. 
 8.4 Bridging of Licenses. 

(a) Without limiting Purchaser’s obligations set forth in Section 8.1(b) above and Seller’s agreement to
cooperate as set forth in Section 8.2(b) above, from and after the date hereof, Purchaser and Seller shall cooperate and work together diligently and in good faith to obtain confirmation from the Oklahoma Department of Health that the parties
can consummate the transaction contemplated by this Agreement with respect to the Licensed Facility. 
 (b) In
the event that Purchaser has not received confirmation from the Oklahoma Department of Health that the parties can consummate the transaction contemplated by this Agreement with respect to any Licensed Facility prior to the Closing Date, Purchaser
and Seller shall enter into such other mutually and reasonably acceptable documents and agreements as may be necessary and permitted under applicable Healthcare Requirements to cause the Seller as the current license-holder for the Licensed Facility
to remain in place pending receipt of such confirmation from the 

  
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Oklahoma Department of Health. If Purchaser requests Seller and/or New Manager to advance (or otherwise consents to the advancement of) any governmental or other administrative agency fees in
connection with the activities specified in the immediately preceding sentence, Purchaser shall be responsible for, or for reimbursing Seller for, any fees incurred by Seller and New Manager in connection therewith. Without limiting the foregoing,
Purchaser and Seller shall enter into a lease from Purchaser to Seller in the form and content attached hereto as Exhibit “L” (a “Bridging Lease”) and a management agreement between the current license-holder and
New Manager, in the form and content attached hereto as Exhibit “M” (a “Bridging Management Agreement”). Notwithstanding the foregoing, Seller acknowledges that Purchaser or its designee taking title to the Property
intends to lease the Property to an affiliate of Purchaser, in which event Purchaser or its designee taking title to the Property shall enter into the Bridging Lease with such affiliate, and such affiliate shall enter into a sublease (the
“Bridging Sublease”) with Seller in substantially the same form and content as attached hereto as Exhibit “L”. 
 (c) Purchaser and Seller shall promptly notify, consult with, and keep the other advised as to the status of the matters referred to in this Section 8.4, including with respect to any communications
to or from any governmental agency or other party in connection with the transfer or issuance of the Purchaser Permits. 
 IX.

 REPRESENTATIONS AND WARRANTIES 
 9.1 Purchaser’s Representations and Warranties. Purchaser represents and warrants to Seller that as of the date hereof and as of the Closing Date: 

(a) Purchaser (i) is a limited partnership, duly formed, validly existing, and in good standing under the laws of the
State of Delaware, (ii) is, or on the Closing Date will be, duly qualified to do business in each state where such qualification is necessary with respect to the Property, and (iii) has the full power and authority to enter into this
Agreement and to carry out the transaction contemplated hereby to be carried out by it. 
 (b) Subject only to
the approval of its Board of Directors, which approval will be deemed to have been obtained prior to the end of the Due Diligence Period if Purchaser does not terminate this Agreement pursuant to Section 2.3, the performance of this Agreement
and the transaction contemplated hereunder by Purchaser have been duly authorized by all necessary action on the part of Purchaser, and this Agreement is binding on and enforceable against Purchaser in accordance with its terms. Purchaser shall, on
or prior to the Closing Date, furnish Seller with certified resolutions evidencing that Purchaser has been duly authorized to enter into and perform this Agreement and the transaction contemplated hereunder. No further consent of any shareholder,
creditor, board of directors, governmental authority or other party to such execution, delivery and performance hereunder is required. The person(s) signing this Agreement, and any document pursuant hereto on behalf of Purchaser, has full power and
authority to bind Purchaser. 

  
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 (c) Neither the execution of this Agreement nor the consummation of the
transaction contemplated hereby will violate any restriction, court order, judgment, law, regulation, charter, bylaw, instrument or agreement to which Purchaser is subject. 

(d) Purchaser has not (i) made any general assignment for the benefit of creditors, (ii) filed any voluntary
petition in bankruptcy or suffered the filing of an involuntary petition in bankruptcy by Purchaser’s creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Purchaser’s assets, or
(iv) suffered the attachment or other judicial seizure of all, or substantially all, of Purchaser’s assets, (v) admitted in writing its inability to pay its debts as they come due, and has no current plans to do or undertake, any of
the foregoing. 
 9.2 Seller’s Representations and Warranties. Subject to the provisions of Section 9.5,
Section 11.3, Section 11.4, and Section 14.15, Seller represents and warrants to Purchaser that as of the date hereof and as of the Closing Date: 
 (a) Seller is a limited partnership, duly organized under the laws of the State of Texas, validly existing, and in good standing under the laws of such state, qualified or registered to do business in the
State of Oklahoma, and has the full power and authority to enter into this Agreement and to carry out the transaction contemplated hereby to be carried out by it. 

(b) The performance of this Agreement and the transaction contemplated hereunder by Seller have been duly authorized by
all necessary action on the part of Seller, and this Agreement is binding on and enforceable against Seller in accordance with its terms. Seller shall, on or prior to the Closing Date, furnish Purchaser with certified resolutions evidencing that
Seller has been duly authorized to enter into and perform this Agreement and the transaction contemplated hereunder. No further consent of any member, manager, creditor, governmental authority or other party to such execution, delivery and
performance hereunder is required. The person(s) signing this Agreement, and any document pursuant hereto on behalf of Seller, has full power and authority to bind Seller. 

(c) Neither the execution of this Agreement nor the consummation of the transaction contemplated herein will violate any
restriction, court order, judgment, law, regulation, charter, bylaw, instrument, or agreement to which Seller or the Property (or any portion thereof) are subject. 

(d) Seller is not a foreign seller as defined in the “Foreign Investment in Real Property Tax Act.” 

(e) There are no demands, complaints, actions, suits or arbitrations pending or, to Seller’s actual knowledge,
threatened nor, to Seller’s actual knowledge, are there any governmental investigations or other proceedings pending or threatened against or affecting Seller and the Property (or any portion thereof) except demands, complaints, actions, suits,
arbitrations, governmental investigations or other proceedings that (i) are fully covered by insurance policies (subject to customary deductibles) or (ii) are listed on Schedule “9.2(e)” attached hereto. 

  
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 (f) Neither Seller nor any general partner of Seller has (i) made any
general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition in bankruptcy by Seller’s or such general partner’s creditors, (iii) suffered the
appointment of a receiver to take possession of all, or substantially all, of Seller’s or such general partner’s assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s or such
general partner’s assets, or (v) admitted in writing its inability to pay its debts as they come due and has no current plans to do or undertake any of the foregoing. 

(g) Attached hereto as Schedule “9.2(g)” is a true and complete, in all material respects, list of
all Material Contracts as of the Effective Date, and, to Seller’s knowledge, is inclusive of all Contracts as of the Effective Date. Except as set forth on Schedule “9.2(g)” attached hereto, as of the Effective Date,
Seller has not received written notice from any party to the Material Contracts of the occurrence of a material default by Seller in the performance of any of its material obligations under the Material Contracts that remains uncured as of the
Effective Date. To Seller’s knowledge, except as set forth on Schedule “9.2(g),” Seller has performed in all material respects all of its obligations under each Material Contract to which it is a party and, to
Seller’s knowledge, no fact or circumstance has occurred, which by itself or with the passage of time or the giving of notice or both would constitute a default by Seller under any such Material Contract. Further, to Seller’s knowledge, as
of the Effective Date, except as set forth on Schedule “9.2(g),” all other parties to such Material Contracts have performed all of their obligations thereunder in all material respects and are not in default thereunder.

 (h) Except as set forth on Schedule “9.2(h)”, as of the Effective Date, Seller has not
received any written notice from any governmental authority nor does Seller possess any actual knowledge that all or any portion of the Facility is or was at any time within the one-year period immediately prior to the Effective Date in material
violation of any of the Legal Requirements, which material violation has not been cured. 
 (i) Seller is not and
is not acting, directly or indirectly, for, or on behalf of, any person or Governmental Entity named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism) or named by the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked Person or Governmental Entity pursuant to
any Legal Requirement that is enforced or administered by the Office of Foreign Assets Control, and is not engaging in the transaction contemplated by this Agreement, directly or indirectly, on behalf of, or instigating or facilitating the
transaction contemplated by this Agreement, directly or indirectly, on behalf of, any such person or Governmental Entity. 

  
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 (j) Attached hereto as Schedule “9.2(j)” is a true and
complete, in all material respects, list of all material Healthcare Permits. To the knowledge of Seller, all of the Permits necessary for the operation of the Facility as it is currently being operated are valid, in good standing and in full force
and effect and, to Seller’s knowledge, none of Seller or its property manager have received written notice of any default or violation of any Permit which if unremedied would have a material adverse effect on the operation, leasing, or
condition of the Facility. To the knowledge of Seller, no governmental authority is considering suspending or revoking any Permit. 
 (k) Attached hereto as Schedule “9.2(k)” is a true and complete, in all material respects, list of all Leases as of the Effective Date. Each Lease in place is in full force and effect as
of the Effective Date in accordance with the terms thereof. To the knowledge of Seller, as of the Effective Date, neither Seller nor any Affiliate of Seller has given or received any notice claiming the existence of any default under any Lease in
place, which default remains uncured. 
 (l) Seller has delivered to Purchaser copies of all final environmental
reports or studies prepared for Seller by third party consultants in Seller’s possession or control relating to the Real Property, which reports are listed on Schedule “9.2(l)” attached hereto. To Seller’s actual knowledge
and except for any matters which are disclosed in the reports listed on Schedule “9.2(l)”, Seller is not aware that the Real Property is not in compliance with any Environmental Requirement. Seller has not received any written
notice of any pending action or proceeding arising out of the environmental condition of the Real Property, Hazardous Materials located on the Real Property, or any alleged violation of Environmental Requirements, which either (i) has not been
remediated or otherwise addressed in all material respects or (ii) would reasonably be expected to be material to the operation of the Facility. 
 (m) The Financial Statements for the Property are the operating statements used in Seller’s ordinary course of business and, to each of Seller’s knowledge, are in accordance with the books and
records of Seller and, to Seller’s knowledge, do not contain any material inaccuracies. 
 (n) To
Seller’s knowledge, Schedule “9.2(n)” sets forth a true and correct, in all material respects, “rent roll” for the Facility (the “Rent Roll”) as of the date identified on such Rent Roll. True and
correct, in all material respects, copies of the form(s) of Resident Agreements used by Seller in the ordinary course of business has/have been made available to Purchaser as part of the Due Diligence Materials. 

9.3 Seller’s Knowledge. Wherever the phrase “to Seller’s actual knowledge” or any similar phrase stating or
implying a limitation on the basis of knowledge appears in this Agreement, unless specifically otherwise qualified or except as otherwise provided herein, such phrase shall mean the present actual knowledge of Craig W. Spaulding or Patrick
McGonigle, after inquiry of the Executive Director of the Facility, but otherwise without any duty of inquiry, any imputation of the knowledge of another, or independent investigation of the relevant matter by any individual(s), and without any
personal liability. Wherever the phrase “in Seller’s possession”, “in the possession of Seller” or similar phrase appears in this Agreement, such phrase shall be deemed to mean only to the extent the material or other item
referred to by such phrase is located at the Property or in Seller’s offices in Dallas, Texas. 

  
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 9.4 Failure of Condition But No Seller Breach. Notwithstanding any provision of this
Agreement to the contrary (including Section 11.1 below), should any of the representations and warranties of Seller become false or inaccurate prior to the Closing Date or if Seller discovers that any representations and warranties are false
or inaccurate and informs Purchaser in writing prior to the Closing Date, then Purchaser’s sole recourse shall be to either (i) terminate this Agreement and cancel the Escrow, in which case the Deposit shall be returned to Purchaser and
neither Seller nor Purchaser will have any further liability or obligation under this Agreement (except for those obligations which survive in accordance with their terms), or (ii) proceed with the closing, without reservation, in which case
Purchaser shall be deemed to have waived all Claims against Seller with respect to such false or inaccurate representation and warranty. Notwithstanding the foregoing or any other provision of this Agreement to the contrary, in the event of any
right by Purchaser to terminate this Agreement (including without limitation, pursuant to Sections 10.3 and 11.2 below), Seller shall first have the right, at its sole option by written Notice to Purchaser within two (2) business days of the
date of Seller’s receipt of such Notice of termination by Purchaser, to elect to cure any failure of a covenant, condition or inaccurate representation or warranty, by the payment of money or otherwise (but, in all events, in a manner
reasonably acceptable to Purchaser), in which case, (a) the Closing Date will be extended at Seller’s option for a period of time not to exceed ten (10) days for Seller to effectuate such cure, and (b) Purchaser and Seller shall
each act reasonably and in good faith to agree on the sufficiency of such cure. If Seller is unable to cure any such failure, inaccuracy, misrepresentation, failed covenant or obligation or other condition, then Purchaser’s sole recourse shall
be to either (i) to terminate this Agreement and cancel the Escrow, in which case the Deposit shall be returned to Purchaser and neither Seller nor Purchaser will have any further liability or obligation under this Agreement (except for those
obligations which survive in accordance with their terms), or (ii) proceed with the closing, without reservation, in which case Purchaser shall be deemed to have waived all Claims against Seller with respect to such false or inaccurate
representation and warranty. 
 9.5 Survival Period. Subject to Section 11.5 below, the representations and
warranties of Seller and Purchaser set forth in this Agreement shall survive until the Survival Date (as hereinafter defined), at which time such representations and warranties shall terminate. 

X. 
 CONDITIONS
PRECEDENT TO CLOSING 
 10.1 Conditions to Seller’s Obligations. The obligation of Seller to close the
transaction contemplated hereunder shall be subject to the satisfaction or Notice of its waiver (delivered to Purchaser and Escrow Agent), in whole or in part, by Seller of each of the following conditions precedent: 

(a) Except by reason of a default by Seller, Escrow Agent is in a position to and will deliver to Seller the instruments
and funds accruing to Seller pursuant to the provisions of this Agreement and the Escrow Agreement; 

  
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 (b) There is no existing uncured material breach of any of the covenants,
representations, warranties or obligations of Purchaser set forth in this Agreement that has not been waived by Seller; and 
 (c) Purchaser shall have obtained confirmation from the Oklahoma Department of Health that Purchaser may consummate the transaction contemplated by this Agreement or Purchaser shall have executed a
Bridging Lease and a Bridging Management Agreement as needed to permit the Purchaser to own the Licensed Facility as of the Closing Date. 
 The
foregoing conditions contained in this Section 10.1 are intended solely for the benefit of Seller. Seller shall at all times have the right to waive any condition precedent, provided that such waiver is in writing and delivered to Purchaser and
Escrow Agent. 
 10.2 Conditions to Purchaser’s Obligations. The obligations of Purchaser to close the transaction
contemplated hereunder shall be subject to the satisfaction or Notice of its waiver (delivered to Seller and Escrow Agent), in whole or in part, by Purchaser of each of the following conditions precedent, and Purchaser shall have no right to
terminate this Agreement or delay the Closing for any other reason: 
 (a) Except by reason of a default by
Purchaser, Escrow Agent is in a position to and will deliver to Purchaser the instruments and funds, if any, accruing to Purchaser pursuant to the provisions of this Agreement; 

(b) There is no existing uncured material breach of any of the covenants, representations, warranties or obligations of
Seller set forth in this Agreement that has not been waived by Purchaser, and Seller’s representations and warranties contained in or made pursuant to this Agreement shall be true and correct in all material respects as if made again on the
Closing Date, but subject to Seller’s right to cure any of the same pursuant to Section 9.4 above; and 

(c) Purchaser shall have obtained confirmation from the Oklahoma Department of Health that Purchaser may consummate the
transaction contemplated by this Agreement or Seller shall have executed a Bridging Lease and a Bridging Management Agreement as needed to permit the Purchaser to own the Licensed Facility as of the Closing Date. 

The foregoing conditions contained in this Section 10.2 are intended solely for the benefit of Purchaser. Purchaser shall at all times have the
right to waive any condition precedent, provided that such waiver is in writing and delivered to Seller and Escrow Agent. 

10.3 Failure of Conditions to Closing. Escrow Agent shall be responsible for confirming, on or before the Closing Date, that the
conditions to Closing set forth in Sections 10.1 and 10.2 hereof, and as set forth elsewhere in this Agreement, have been satisfied. Purchaser and Seller hereby agree to deliver their Notices to Escrow Agent, on or before the Closing Date, of the
satisfaction or waiver of all conditions to Closing hereunder, and, in the event that both Purchaser and Seller specifically notify and instruct Escrow Agent, in writing, to proceed to Closing hereunder, all such conditions to Closing hereunder that
are not otherwise 

  
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satisfied shall be deemed to have been waived by both Purchaser and Seller. Escrow Agent shall not proceed to Closing hereunder unless both Purchaser and Seller specifically notify and instruct
Escrow Agent to do so. Seller and Purchaser shall use commercially reasonable efforts to satisfy the closing conditions set forth herein. Each party shall at any time and from time to time after the Closing execute, acknowledge where required, and
deliver such further instruments and documents, and take such other action as may be reasonably requested by the other party in order to carry out the purposes of this Agreement. Except as otherwise expressly provided herein, in the event any of the
conditions to closing set forth in this Agreement are not satisfied (other than as the result of a default by Purchaser or Seller under the terms of this Agreement) or waived by the applicable party by the Closing Date, then either Seller or
Purchaser (as applicable) shall have the right at its option to declare this Agreement terminated and null and void, in which case the Deposit shall be immediately returned to Purchaser (and such right shall survive any termination of this
Agreement) and each of the parties shall be relieved from further liability to the other. 
 XI. 

REMEDIES FOR PRE-CLOSING AND POST-CLOSING DEFAULTS ; LIQUIDATED 

DAMAGES 

11.1 Default by Purchaser Prior to Closing. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTION HEREIN CONTEMPLATED
DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY MATERIAL DEFAULT OF PURCHASER, PURCHASER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH SELLER MAY SUFFER. THEREFORE, PURCHASER AND SELLER DO
HEREBY AGREE THAT, IN THE EVENT OF SUCH DEFAULT, A REASONABLE ESTIMATE OF THE TOTAL DAMAGES THAT SELLER WOULD SUFFER IN THE EVENT THAT PURCHASER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS AND SHALL BE, AS SELLER’S SOLE AND
EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY), AN AMOUNT EQUAL TO THE DEPOSIT. SAID AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR THE FAILURE OF PURCHASER TO CLOSE AND CONSUMMATE THE TRANSACTION HEREIN CONTEMPLATED. ALL OTHER CLAIMS
TO DAMAGES OR OTHER REMEDIES IN CONNECTION WITH PURCHASER’S FAILURE TO CLOSE AND CONSUMMATE THE TRANSACTION CONTEMPLATED HEREIN ARE EXPRESSLY WAIVED BY SELLER. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR
PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER. UPON SUCH DEFAULT BY PURCHASER THAT REMAINS UNCURED AFTER THE EXPIRATION OF ANY APPLICABLE CURE PERIOD, THIS AGREEMENT SHALL BE TERMINATED AND NEITHER PARTY SHALL HAVE ANY FURTHER
RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT ANY INDEMNIFICATION OBLIGATIONS, THE RIGHTS OF SELLER AND PURCHASER THAT SHALL SURVIVE AS PROVIDED HEREIN, AND FOR THE RIGHT OF SELLER TO COLLECT SUCH LIQUIDATED DAMAGES FROM PURCHASER AND
ESCROW AGENT. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 11.1, NOTHING HEREIN SHALL LIMIT SELLER’S RECOVERY IN CONNECTION WITH ANY EXPRESS INDEMNITY BY PURCHASER PROVIDED IN THIS AGREEMENT. 

 

									
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		  	SELLER’S INITIALS	  		  	PURCHASER’S INITIALS	  	


  
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 11.2 Default by Seller Prior to Closing. IN THE EVENT THE CLOSING AND THE
CONSUMMATION OF THE TRANSACTION HEREIN CONTEMPLATED DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY DEFAULT OF SELLER, THEN PURCHASER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH PURCHASER
MAY SUFFER. THEREFORE, PURCHASER AND SELLER DO HEREBY AGREE THAT, IN THE EVENT OF SUCH DEFAULT, PURCHASER MAY, AS ITS SOLE RECOURSE AND REMEDY (AT LAW OR IN EQUITY), EITHER: (a) PURSUE AN ACTION AGAINST SELLER FOR SPECIFIC PERFORMANCE, PROVIDED
THAT SUCH ACTION IS INITIATED WITHIN NINETY (90) DAYS FOLLOWING THE CLOSING DATE SET FORTH HEREIN; OR (b) TERMINATE THIS AGREEMENT AND RECEIVE THE RETURN OF THE DEPOSIT PLUS DAMAGES FROM SELLER IN AN AMOUNT EQUAL TO PURCHASER’S
THIRD-PARTY EXPENSES ACTUALLY INCURRED IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREIN, INCLUDING WITHOUT LIMITATION THE NEGOTIATION OF THIS AGREEMENT, WHICH DAMAGES (NOT INCLUDING THE RETURN OF THE DEPOSIT) SHALL NOT EXCEED TWO HUNDRED
THOUSAND DOLLARS ($200,000.00). ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES IN CONNECTION WITH SELLER’S FAILURE TO CLOSE AND CONSUMMATE THE TRANSACTION CONTEMPLATED HEREIN (OTHER THAN AS SPECIFIED IN (a) AND (b) HEREOF) ARE
EXPRESSLY WAIVED BY PURCHASER. UPON DEFAULT BY SELLER, IF THIS AGREEMENT IS TERMINATED BY PURCHASER, NEITHER PARTY SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT ANY INDEMNIFICATION OBLIGATIONS, AND THE RIGHTS OF
SELLER AND PURCHASER THAT SHALL SURVIVE AS PROVIDED HEREIN. 
  

							
		 	        /s/CWS                
	 	          /s/
TBB                        	 	
		 	SELLER’S INITIALS	 	PURCHASER’S INITIALS	 	

 11.3 Limitations of Purchaser’s Post-Closing Claims. 

(a) Notwithstanding any provision to the contrary herein or in any document or instrument (including any deeds, bill of
sale or assignments) executed by Seller and delivered to Purchaser at or in connection with the Closing (excluding the Bridging Lease and the Bridging Management Agreement, if applicable) (collectively, “Closing Documents”), Seller
shall not have (and Seller is exculpated and released from any) liability whatsoever with respect to any Claims under, and Purchaser shall be forever barred from making or bringing any Claims with respect to, any of the representations and
warranties, covenants and indemnities contained in this Agreement or in any Closing Document, except to the extent (and only to the extent) that the aggregate amount of all Claims for breach of Seller’s representations and warranties, covenants
and indemnities exceed One Hundred Thousand and No/100 Dollars ($100,000.00) (the “Threshold  

  
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Amount”) (but if any such Claims are valid and are finally determined (or settled) to be in excess of the Threshold Amount, then Seller’s liability shall extend to the
“first dollar” of Purchaser’s Claims); provided, however, notwithstanding any provision to the contrary herein or in any Closing Document, the total liability of Seller for any or all Claims with respect to the Property may not exceed
Three Hundred Thousand and No/100 Dollars ($300,000.00) (such amount, the “Cap Amount”). The Cap Amount shall be placed in escrow with the Post-Closing Escrow Agent at Closing out of funds that would otherwise be payable to Seller
(the “Post-Closing Liability Escrow”), pursuant to the terms and conditions of a Post-Closing Escrow Agreement, in form and content as attached hereto as Exhibit “M” (the “Post-Closing Escrow
Agreement”). The Post-Closing Escrow Agreement shall further provide that on the date which is six (6) months after the Closing Date, the Post-Closing Escrow Agent shall refund to Seller fifty percent (50%) of the Cap Amount
unless there exists a Pending Claim, as hereinafter provided, and on the Survival Date, the Post-Closing Escrow Agent shall refund to Seller any remaining balance of the Post-Closing Liability Escrow (including any interest earned thereon), unless
there is a Pending Claim, in which event the Post-Closing Liability Escrow shall remain in place until the Pending Claim is definitively resolved by agreement of the parties or final court order but all funds in the Post-Closing Liability Escrow,
other than those funds that are to be retained by the Post-Closing Escrow Agent in accordance with the terms of the Escrow Agreement, shall be released to Seller as of the Survival Date. If any amount remains in the Post-Closing Liability Escrow
following the definitive resolution of the Pending Claim by agreement of the parties or final court order, such amount should be released to Seller. For purposes of clarification, the terms of this Section 11.3 shall not apply to any liability
of Seller to any third parties unaffiliated with Purchaser regarding the Retained Liabilities. 
 (b) Purchaser
shall not make any Claim with respect to the Property or deliver any notice of a Claim with respect to the Property (a “Claim Notice”) unless in good faith, it believes the Claim or all of the Claims with respect to the Property in
the aggregate would exceed the applicable Threshold Amount. 
 11.4 Survival of Purchaser’s Claims. Except as
otherwise specifically set forth in this Agreement, the representations and warranties, covenants and indemnities of Seller contained herein or in any Closing Document shall survive only until the date that is nine (9) months after the Closing
Date (the “Survival Date”). Any Claim that Purchaser may have at any time against Seller for breach of any such representation, warranty, covenant or indemnity, whether known or unknown, with respect to which a Claim Notice has not
been delivered to Seller on or prior to the Survival Date, shall not be valid or effective and the party against whom such Claim is asserted shall have no liability with respect thereto. Any Claim that Purchaser may have at any time against Seller
for a breach of any such representation or warranty, or its covenants and indemnities whether known or unknown, with respect to which a Claim Notice has been delivered to Seller on or prior to the Survival Date (a “Pending Claim”)
may be the subject of subsequent litigation brought by Purchaser against Seller. For avoidance of doubt, on the Survival Date, Seller shall be fully discharged and released (without the need for separate releases or other documentation) from any
liability or obligation to Purchaser and/or its successors and assigns with respect to any Claims or other matters relating to this Agreement or any Closing Document, except solely for those matters that are then the subject of a Claim Notice
delivered by Purchaser to Seller on or prior to the Survival Date that is still pending on the Survival Date. 

  
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 11.5 Limitations on Liability. To the maximum extent permitted by applicable law, no
shareholder, director, officer or employee of any party to this Agreement shall have any personal liability with respect to the liabilities or obligations of such party under this Agreement or any document executed by such party pursuant to this
Agreement. 
 11.6 Survival. Article XI shall survive the Closing. 

XII. 

FINANCIAL ADVISOR 
 Seller
represents and warrants to Purchaser, and Purchaser represents and warrants to Seller, that except for KeyBanc Capital Markets Inc. (“Financial Advisor”), no financial advisor, broker or commission agent has been engaged by it or
their affiliates, respectively, in connection with the transaction contemplated by this Agreement or to its knowledge is in any way connected with this transaction. Purchaser shall be responsible for the payment of any commission, finder’s fee
or other sum initiated by any financial advisor, broker, commission agent or other person engaged or retained by Purchaser in connection with the transaction contemplated by this Agreement. Seller shall be responsible for the payment of any
compensation, commission, finder’s fee or other sum initiated by any financial advisor, broker, commission agent or other person engaged or retained by Seller in connection with the transaction contemplated by this Agreement, including without
limitation, Financial Advisor. Seller and Purchaser (except with respect to the compensation which shall be paid by Seller to Financial Advisor) each agree to indemnify, protect, defend and hold the other harmless from and against any claims,
actions, suits or demands for payment of any compensation, commission, finder’s fee or other sum initiated by any financial advisor, broker, commission agent or other person which such party or its representatives has engaged or retained or
with which it has had discussions concerning or which shall be based upon any statement or agreement alleged to have been made by such party, in connection with the transaction contemplated by this Agreement or the sale of the Property by Seller.
The provisions of this Article XII shall survive the Closing. 

  
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 XIII. 
 NOTICES 
 Except as otherwise expressly provided in this Agreement, all notices, requests,
demands and other communications hereunder (“Notice”) shall be in writing and shall be deemed delivered by (i) hand delivery upon receipt, (ii) registered mail or certified mail, return receipt requested, postage prepaid,
upon delivery to the address indicated in the Notice, (iii) by confirmed telecopy or facsimile transmission when sent, and (iv) overnight courier (next business day delivery) on the next business day at 12:00 noon, whichever shall occur
first, as follows: 
 If to Seller: 
 c/o South Bay Partners, Ltd. 
 5307 E Mockingbird Lane, Ste.1010 

Dallas, TX 75206 

Attn: Craig W. Spaulding 
 Telephone: (214) 370-2600 
 Facsimile: (214) 370-2699 

With a copy to: 

Arent Fox LLP 

1717 K Street, N.W. 
 Washington, D.C. 20036-5339 
 Attention: Kenneth S. Jacob, Esq. 

Telephone: (202) 775-5750 
 Facsimile: (202) 857-6395 
 If to Purchaser: 

CHP Partners, LP 

c/o CNL Healthcare Properties, Inc. 
 450 South Orange Avenue, Suite 1200 Orlando, FL 32801-3336 
 Attention: Tracey B.
Bracco, Esq. 
 Telephone: (407) 540-7500 
 Facsimile: (407) 540-2544 
 Email: tracey.bracco@cnl.com 

With a copy to: 

Lowndes, Drosdick, Doster, Kantor & Reed, P.A. 
 215 North Eola Drive 
 Orlando, Florida 32801 

Attention: William T. Dymond, Jr., Esq. 
 Telephone: (407) 843-4600 
 Facsimile: (407) 843-4444 

Email: william.dymond@lowndes-law.com 
 Any correctly addressed Notice that is refused, unclaimed or undelivered because of an act or omission of the party to be notified shall be considered to be effective as of the first day that the Notice
was refused, unclaimed or considered undeliverable by the postal authorities, messenger or overnight delivery service. The parties hereto shall have the right from time to time, and at any time, to change their respective addresses and each shall
have the right to specify as its address any other address within the United States of America, by giving to the other party at least five (5) days prior Notice thereof, in the manner prescribed herein; provided, however, that to be effective,
any such change of address must be actually received (as evidenced by a return 

  
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receipt). Telephone numbers and email addresses, if listed, are listed for convenience purposes only and not for the purposes of giving Notice pursuant to this Agreement. Any Notice that is
required or permitted to be given by either party to the other under this Agreement may be given by such party or its legal counsel, who are hereby authorized to do so on the party’s behalf. 

XIV. 

MISCELLANEOUS 
 14.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oklahoma. If any legal action is necessary to enforce the terms and conditions of
this Agreement, the parties hereby agree that the courts in the State of Oklahoma shall be the sole jurisdiction and venue for the bringing of the action. 
 14.2 Exhibits and Schedules a Part of This Agreement. The Exhibits and Schedules attached hereto are incorporated in this Agreement by reference and are hereby made a part hereof. 

14.3 Executed Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts
and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement shall become effective upon the due execution and delivery of this Agreement to the parties hereto. 

14.4 Assignment. Purchaser may not assign, convey and otherwise transfer all or any part of its interest or rights herein without
the prior written consent of Seller, which consent may be withheld in Seller’s sole discretion. Notwithstanding the foregoing, however, Purchaser may (without Seller’s consent but with advance written notice to Seller), by not later than
one (1) business day prior to Closing, assign and transfer in whole or in part all of its rights and obligations under this Agreement to one (1) or more wholly owned subsidiary(ies) thereof, or to a one hundred percent (100%) owned
affiliate(s) thereof, or to any entity controlled (directly or indirectly, through voting or equity ownership) by Purchaser in the form of the Assignment of Purchase Agreement attached hereto as Exhibit “K”; provided, however, that
Purchaser shall not be released of its obligations under this Agreement as a result of any such assignment. No transfer or assignment in violation of the provisions hereof shall be valid or enforceable. 

14.5 IRS—Form 1099-S. For purposes of complying with Section 6045 of the Internal Revenue Code of 1986, as amended,
Escrow Agent shall be deemed the “person responsible for closing the transaction” and shall be responsible for obtaining the information necessary to file with the Internal Revenue Service Form 1099-S, “Statement for Recipients of
Proceeds from Real Estate, Broker and Barter Exchange Transactions.” 
 14.6 Successors and Assigns. Subject to the
provisions of Section 14.4 hereof, this Agreement shall be binding upon and inure to the benefit of the parties’ respective successors and permitted assigns. 

  
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 14.7 Time is of the Essence. Time is of the essence of this Agreement. 

14.8 Entire Agreement. This Agreement, and Exhibits and Schedules and other documents and instruments attached to or referenced
herein, contain the entire understanding and agreement between the parties hereto with respect to the purchase and sale of the Property, and all prior and contemporaneous understandings, letters of intent, agreements and representations, whether
oral or written, are entirely superseded. Except for any of the following expressly contained in this Agreement, Seller and Purchaser each expressly disclaim any reliance on any oral or written representations, warranties, comments, statements or
assurances made by Seller, Purchaser, and any of their respective affiliates, and their respective agents, employees, representatives, attorneys, financial advisors or brokers, as an inducement or otherwise, to Purchaser’s and Seller’s
respective execution hereof. No amendment of this Agreement shall be binding unless in writing and executed by the parties hereto. 
 14.9 Further Assurances. Whenever and so often as requested by a party, the other party will promptly execute and deliver or cause to be executed and delivered all such other and further
instruments, documents or assurances, and promptly do or cause to be done all such other and further things as may be necessary and reasonably required in order to further and more fully vest in such requesting party all rights, interests, powers,
benefits privileges and advantages conferred or intended to be conferred upon it by this Agreement, or to effectuate the termination of this Agreement and cancellation of the Escrow (if otherwise permitted hereunder). The terms of this Section shall
survive Closing and/or termination of this Agreement. 
 14.10 Waiver. Failure or delay by either party to insist on the
strict performance of any covenant, term, provision or condition hereunder, or to exercise any option herein contained, or to pursue any claim or right arising herefrom, shall not constitute or be construed as a waiver of such covenant, term,
provision, condition, option, claim or right (except that if a party proceeds to Closing, notwithstanding the failure of a condition to its obligation to close, then such condition shall be deemed waived by virtue of the Closing). Any waiver by
either party shall be effective only if in a writing delivered to the other party hereto and setting forth, with specificity, the covenant, term, provision or condition so waived. Any such waiver shall not constitute or be construed as a continuing
waiver of any subsequent default. 
 14.11 Headings. The headings of this Agreement are for purposes of convenience only
and shall not limit or define the meaning of the provisions of this Agreement. 
 14.12 Risk of Loss. With respect to the
Property, the risk of loss shall be as follows: 
 (a) Until the Closing Date, Seller shall bear the risk of loss
should there be damage to the Property by fire or other casualty (collectively “Casualty”). If, prior to the Closing Date, the Property shall be damaged by any Casualty, Seller shall promptly deliver to Purchaser a Notice
(“Casualty Notice”) of such event. Upon Purchaser’s receipt of a Casualty Notice, Seller and Purchaser shall meet promptly to estimate the cost to repair and restore the Improvements to good condition and to replace the damaged
Personal Property (“Casualty Renovation Cost”). If the parties are unable to agree on the cost of restoration, the matter will be submitted to an engineer designated by Seller and an engineer designated by Purchaser, each licensed
to practice in the state in which the Land is located, and the engineers shall resolve the dispute. Each party hereto shall bear the costs and expenses of its own engineer. 

  
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 (b) If the Casualty Renovation Costs for the Facility
exceeds One Million and No/100 Dollars ($1,000,000.00), then, Purchaser may, at its option, elect to terminate this entire Agreement by Notice to Seller within ten (10) business days after the date that the Casualty Renovation Cost is
determined. If Purchaser does not elect to terminate this Agreement, then the Closing shall take place as provided herein without reduction of the Purchase Price and Seller shall assign the insurance proceeds to Purchaser in the event the Casualty
is insured against and shall pay to Purchaser the amount of any deductible not already otherwise paid by Seller under applicable insurance policies, or have the Purchase Price reduced by the Casualty Renovation Cost in the event the Casualty is not
fully insured against (subject to further adjustment for actual restoration costs). 
 (c) If the Casualty
Renovation Cost is One Million and No/100 Dollars ($1,000,000.00) or less, then, in any such event, neither party hereto shall have any right to terminate this Agreement, the Closing shall take place as provided herein without reduction of the
Purchase Price, and Seller shall assign the insurance proceeds to Purchaser in the event the Casualty is insured against and shall pay to Purchaser the amount of any deductible, under applicable insurance policies, or have the Purchase Price reduced
by the Casualty Renovation Cost in the event the Casualty is not fully insured against (subject to further adjustment for actual restoration costs). 
 (d) If, prior to the Closing Date, Seller receives notice that a material portion of the Property (or access or other material rights in connection therewith) as would materially adversely affect the
operation of the Facility or uses of the Property is, or has been threatened in writing by a governmental authority of competent jurisdiction, to be taken by condemnation or eminent domain, Seller shall promptly notify Purchaser, and at the election
of Purchaser this Agreement shall, upon the giving of Notice of such event or of the condemning authorities’ intention so to take the Property, to the extent that the taking or condemnation is reasonably anticipated to materially adversely
affect the operation of the Facility or uses of the Property, Purchaser may terminate this Agreement. If Purchaser does not elect to terminate this Agreement prior to the Closing Date, on the Closing Date all of the proceeds of any award or payment
made or to be made by reason of such taking shall be assigned by Seller to Purchaser, and any money theretofore received by Seller in connection with such taking shall be paid over to Purchaser, whereupon Purchaser shall pay the Purchase Price
without abatement by reason of such taking. Seller shall not settle, agree to, or accept any award or payment in connection with a taking of less than all of the Property without obtaining Purchaser’s prior written consent in each case, which
consent shall not be unreasonably withheld or delayed. 
 (e) In the event of any termination of this Agreement
in its entirety by Purchaser pursuant to this Section 14.12, the Deposit shall be returned to Purchaser and neither party shall have any further liability with respect to this Agreement, except to the extent of such provisions which expressly
survive such transaction. 

  
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 (f) Notwithstanding any language to the contrary herein, the parties
acknowledge that the roof of the Facility has suffered storm damage, that Purchaser’s sole right to terminate this Agreement on account of such roof damage shall be during the Due Diligence Period, that the occurrence of such roof damage shall
not constitute a Casualty for the purposes of this Section 14.12, and that the roof damage shall be addressed as provided in the remainder of this paragraph. Seller shall use its commercially reasonable efforts to cause the roof damage to be
repaired prior to Closing. To the extent the roof damage has not been repaired by Closing, Seller shall (i) assign to Purchaser its right to receive any additional insurance proceeds on account of such roof damage, plus (ii) to the extent
the remaining insurance proceeds are insufficient to complete the roof repair, provide Purchaser a credit against the Purchase Price in the amount necessary to complete the roof repair less the amount of the assigned insurance proceeds. Following
Closing, Seller shall have no further liability on account of such roof damage. 
 14.13 Construction of Agreement. The
parties hereto have negotiated this Agreement at length, and have had the opportunity to consult with, and be represented by, their own competent counsel. This Agreement is, therefore, deemed to have been jointly prepared. In determining the meaning
of, or resolving any ambiguity with respect to, any word, phrase or provision of this Agreement, no uncertainty or ambiguity shall be construed or resolved against any party under any rule of construction, including the party primarily responsible
for the drafting and preparation of this Agreement. The words “herein,” “hereof,” “hereunder” and words of similar reference shall mean this Agreement. The words “this Agreement” include the exhibits,
schedules addenda and any future written modifications, unless otherwise indicated by the context. All words in this Agreement shall be deemed to include any number or gender as the context or sense of the Agreement requires. The words
“will,” “shall” and “must” in this Agreement indicate a mandatory obligation. The use of the words “include,” “includes” and “including” followed by one or more examples is intended to be
illustrative and is not a limitation on the scope of the description or term for which the examples are provided. All dollar amounts set forth in this Agreement are stated in United States Dollars, unless otherwise specified. The words
“day” and “days” refer to calendar days unless otherwise stated. The words “business day” refers to a day other than a Saturday, Sunday or Legal Holiday (hereinafter defined). The words “month” and
“months” refer to calendar months unless otherwise stated. The words “year” and “years” refer to calendar years unless otherwise stated. If any date herein set forth for the performance of any obligations by Seller or
Purchaser or for the delivery of any instrument or notice as herein provided should fall on a Saturday, Sunday or Legal Holiday, the compliance with such obligations or delivery will be deemed acceptable on the next business day following such
Saturday, Sunday or Legal Holiday. As used herein, the term “Legal Holiday” will mean any local or federal holiday on which post offices are closed in the State of Oklahoma. 

14.14 No Public Disclosure. The parties agree that no party shall, with respect to this Agreement and the transactions
contemplated hereby, contact or conduct negotiations with public officials, make any public pronouncements, issue press releases or otherwise furnish information regarding this Agreement or the transactions contemplated hereby to any third party
without the consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed, except as may be required by law or securities regulations or as may be reasonably necessary, on a confidential basis, to inform any
rating agencies, potential sources of 

  
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financing, financial analysts, or to entities involved with a sale of a controlling interest in Seller, Purchaser or any of their Affiliates or to receive legal, accounting and/or tax advice;
provided, however, that, if such information is required to be disclosed by law, the party so disclosing the information will use reasonable efforts to give notice to the other parties as soon as such party learns that it must make such
disclosure. Notwithstanding the foregoing, if such information is required to be disclosed to any governmental authority to facilitate the issuance of Permits or obtain zoning information, the disclosing party may disclose such information
without the consent of the other parties and shall promptly give written notice to the other parties of such information which was disclosed. This Section 14.14 shall be subject to the terms of the confidentiality provisions of
Section 14.16. 
 14.15 Covenants, Representations and Warranties. By proceeding with the closing of the sale
transaction, Seller and Purchaser shall be deemed to have waived, and so covenant to waive, any claims of defaults or breaches by the other party existing on or as of the Closing Date whether under this Agreement or any other document or instrument
executed by the other party in connection with this transaction, of which the waiving party was made aware by Notice from the defaulting or breaching party (and, if applicable, which is described on Seller’s certification of representations and
warranties to be delivered at Closing) prior to the Closing Date for which the other party shall have no liability. 
 14.16
Confidentiality. Other than as required or permitted by the terms of this Agreement or required by any Legal Requirements (including without limitation, any disclosures required or advisable by Seller or Purchaser under any applicable
securities laws or practices), no party hereto shall release or cause or permit to be released any press notices or releases or publicity (oral or written) or advertising promotion relating to, or otherwise announce or disclose or cause or permit to
be announced or disclosed, in any manner whatsoever, the terms and conditions of the purchase and sale transaction for the Property, nor shall Purchaser or its agents or representatives disclose, in any manner whatsoever, (a) the information
provided to Purchaser by Seller or its representatives, or (b) any analyses, compilations, studies or other documents or records prepared by or on behalf of Purchaser, in connection with Purchaser’s investigation of the Property, without
first obtaining the written consent of Seller (collectively, “Proprietary Information”). Proprietary Information shall not include (i) publicly available information or (ii) information that becomes publicly available for
reasons other than a breach of this section by Purchaser. The foregoing shall not preclude Purchaser (i) from discussing the Proprietary Information with any person who is employed by Purchaser or who, on behalf of Purchaser, is actively and
directly participating in the purchase and sale of the Property, including, without limitation, to Purchaser’s shareholders, partners, members, existing or prospective lenders, attorneys, accountants and other consultants and advisors, or
(ii) from complying with all laws, rules, regulations and court orders, including, without limitation, governmental regulatory, disclosure, tax and reporting requirements; provided, however, that if Purchaser is required by applicable law or
legal process to disclose any Proprietary Information, Purchaser agrees to use its commercially reasonable efforts to obtain assurance that, if possible, confidential treatment will be accorded to the Proprietary Information. Purchaser shall inform
its respective representatives of the confidential nature of the Proprietary Information and shall direct them to be bound by the terms of this Section. In addition to any other remedies available to Seller, Seller shall have the right to seek
equitable relief, including, without limitation, injunctive relief or specific performance, against Purchaser in order to enforce the provisions of this Section. The provisions of such confidentiality agreement shall survive any termination of this
Agreement. 

  
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 14.17 No Third-Party Beneficiaries. Except as otherwise expressly provided herein,
Seller and Purchaser agree that there are no third parties who are intended to benefit from or who are entitled to rely on any of the provisions of this Agreement. No third party shall be entitled to assert any claims or to enforce any rights
whatsoever pursuant to this Agreement. Except as otherwise expressly provided herein, the covenants and agreements provided in this Agreement are solely for the benefit of Seller and Purchaser and their permitted successors and assigns respectively.

 14.18 Electronic Signatures. The execution of this Agreement and all Notices given hereunder and all amendments
hereto, may be effected by portable document format (“.pdf”) signatures, all of which shall be treated as originals; provided, however, that the party receiving a document with a .pdf signature may, by Notice to the other, require
the prompt delivery of an original signature to evidence and confirm the delivery of the .pdf signature. Purchaser and Seller each intend to be bound by its respective .pdf transmitted signature, and is aware that the other party will rely thereon,
and each party waives any defenses to the enforcement of the Agreement, and documents, and any Notices delivered by facsimile or .pdf transmission. 
 14.19 Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this
Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid
and be enforced to the fullest extent permitted by law. 
 14.20 Cumulative Remedies. No remedy conferred upon a party in
this Agreement is intended to be exclusive of any other remedy herein or by law provided or permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law, in equity or by
statute (except as otherwise expressly herein provided). 
 14.21 WAIVER OF JURY TRIAL. THE PARTIES HEREBY
IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN
THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Purchase and Sale Agreement to be
executed effective as of the Effective Date. 
  

					
	 OKLAHOMA CARE GROUP, LP,
 a Texas limited partnership

		
	By:	 	 OKLAHOMA CARE GROUP GP, LLC, a Texas
 limited liability company, its general partner

			
		 	By:	 	/s/ Craig W. Spaulding
		 		 	Craig W. Spaulding
		 		 	Manager


  

									
	PURCHASER:
	
	CHP PARTNERS, LP, a Delaware limited partnership
		
	By:	 	CHP GP, LLC, a Delaware limited liability company, its general partner
				
		 	By:	 		 	CNL Healthcare Properties, Inc., a Maryland corporation, its sole member
					
		 		 		 	By:	 	/s/ Tracey B. Bracco
		 		 		 	Name:	 	Tracey B. Bracco
		 		 		 	Title:	 	Vice President



  
 S-1









 LIST OF EXHIBITS TO PURCHASE AGREEMENT 

 

			
	Exhibit “A”	  	Legal Description of Property
	Exhibit “B”	  	Form of Escrow Agreement for Earnest Money Deposit
	Exhibit “C”	  	Form of Deed
	Exhibit “D”	  	Form of Bill of Sale
	Exhibit “E”	  	Form of Assignment and Assumption of Intangible Property
	Exhibit “F”	  	Form of Assignment and Assumption of Leases and Contracts
	Exhibit “G”	  	Form of Assignment and Assumption of Resident Agreements
	Exhibit “H”	  	Form of FIRPTA Certificate
	Exhibit “I”	  	Form of Owner’s Affidavit
	Exhibit “J”	  	Form of Notice to Residents
	Exhibit “K”	  	Form of Assignment of Purchase Agreement
	Exhibit “L”	  	Bridging Lease
	Exhibit “M”	  	Bridging Management Agreement
	Exhibit “N”	  	Post-Closing Escrow Agreement

 LIST OF SCHEDULES TO PURCHASE AGREEMENT 

 

			
	Schedule 1	  	Excluded Intellectual Property Rights
	Schedule “9.2(e)”	  	Litigation
	Schedule “9.2(g)”	  	Material Contracts
	Schedule “9.2(h)”	  	Notice of Material Violation of Legal Requirements
	Schedule “9.2(j)”	  	Material Healthcare Permits
	Schedule “9.2(k)”	  	Leases
	Schedule “9.2(l)”	  	Environmental Reports
	Schedule “9.2(n)”	  	Rent Roll








 EXHIBIT “A” 

LEGAL DESCRIPTION OF PROPERTY 
 (as described in the vesting deed) 
 [Intentionally Omitted] 

EXHIBIT “B” 
 FORM OF 
 EARNEST MONEY DEPOSIT ESCROW AGREEMENT 

[Intentionally Omitted] 
 EXHIBIT “C” 
 FORM OF DEED 

[Intentionally Omitted] 
 EXHIBIT “D” 
 FORM OF BILL OF SALE 

[Intentionally Omitted] 
 EXHIBIT “E” 
 FORM OF ASSIGNMENT AND ASSUMPTION OF INTANGIBLE
PROPERTY 
 [Intentionally Omitted] 
 EXHIBIT “F” 
 FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES AND
CONTRACTS 
 [Intentionally Omitted] 







 EXHIBIT “G” 

FORM OF ASSIGNMENT AND ASSUMPTION OF RESIDENT AGREEMENTS 
 [Intentionally Omitted] 
 EXHIBIT “H” 

FORM OF FIRPTA CERTIFICATE 
 [Intentionally Omitted] 
 EXHIBIT “I” 

FORM OF OWNER’S AFFIDAVIT 
 [Intentionally Omitted] 
 EXHIBIT “J” 

FORM OF NOTICE TO RESIDENTS 
 [Intentionally Omitted] 
 EXHIBIT “K” 

FORM OF ASSIGNMENT OF PURCHASE CONTRACT 
 TO APPLICABLE PROPERTY 
 [Intentionally Omitted] 

EXHIBIT “L” 
 FORM OF BRIDGING LEASE 
 [Intentionally Omitted] 







 EXHIBIT “M” 

FORM OF BRIDGING MANAGEMENT AGREEMENT 
 [Intentionally Omitted] 
 EXHIBIT “N” 

FORM OF POST-CLOSING ESCROW AGREEMENT 
 [Intentionally Omitted] 
 SCHEDULE “1” 

EXCLUDED INTELLECTUAL PROPERTY RIGHTS 
 [Intentionally Omitted] 
 SCHEDULE “9.2(e)” 

LITIGATION 

[Intentionally Omitted] 
 SCHEDULE “9.2(g)” 
 MATERIAL CONTRACTS 

[Intentionally Omitted] 
 SCHEDULE “9.2(h)” 
 NOTICE OF MATERIAL VIOLATION OF LEGAL
REQUIREMENTS 
 [Intentionally Omitted] 







 SCHEDULE “9.2(j)” 

MATERIAL HEALTHCARE PERMITS 
 [Intentionally Omitted] 
 SCHEDULE “9.2(k)” 

LEASES 

[Intentionally Omitted] 
 SCHEDULE “9.2(l)” 
 ENVIRONMENTAL REPORTS 

[Intentionally Omitted] 
 SCHEDULE “9.2(n)” 
 RENT ROLL 

[Intentionally Omitted]