Document:

Exhibit 10.121

 Exhibit 10.121 

[FIRST AMENDED AND RESTATED1] 
 MANAGEMENT AGREEMENT 
 for 

SUNRISE OF
                     
                     , 2010 
 Owner:
                                        

 Manager: [Sunrise Senior Living Management, Inc. / Sunrise North Senior Living Ltd.] 

 
  

	1	 In the case of certain Facilities (e.g., Facility Numbers 4037, 4038, 4063, 4064, 4065, 4066, 4076 and 4078), there have been one or more previous
amendments and restatements of the original Management Agreement and, accordingly, in the case of such Facilities, the applicable title of the Management Agreement and the recitals to the Management Agreement will be conformed to appropriately
reflect the history of the applicable Management Agreement. 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page No	 
	 ARTICLE I
	  	 DEFINITIONS
	  	 	2	  
		 	 1.1
	  	 8th Business Day Reports
	  	 	2	  
		 	 1.2
	  	 Account
	  	 	2	  
		 	 1.3
	  	 Accountant
	  	 	2	  
		 	 1.4
	  	 Accounting Period
	  	 	2	  
		 	 1.5
	  	 Adjusted Net Operating Income (“ANOI”)
	  	 	2	  
		 	 1.6
	  	 Affiliate
	  	 	2	  
		 	 1.7
	  	 Aggregate Late Deliveries Limit
	  	 	2	  
		 	 1.8
	  	 Agreement
	  	 	3	  
		 	 1.9
	  	 Amendment Date
	  	 	3	  
		 	 1.10
	  	 Applicable Local Currency
	  	 	3	  
		 	 1.11
	  	 Applicable Translation Rate
	  	 	3	  
		 	 1.12
	  	 Approved Budget
	  	 	3	  
		 	 1.13
	  	 Authorizations
	  	 	3	  
		 	 1.14
	  	 Authorized Officer
	  	 	4	  
		 	 1.15
	  	 Bad Debt
	  	 	4	  
		 	 1.16
	  	 Base Management Fee
	  	 	4	  
		 	 1.17
	  	 Business Day
	  	 	4	  
		 	 1.18
	  	 Capital Transaction
	  	 	4	  
		 	 1.19
	  	 Commencement of Management Services
	  	 	4	  
		 	 1.20
	  	 CONs
	  	 	4	  
		 	 1.21
	  	 Emergency Requirements
	  	 	5	  
		 	 1.22
	  	 [CANADA ONLY: Employee Claim
	  	 	5	  
		 	 1.23
	  	 [CANADA ONLY: Employee Costs
	  	 	5	  
		 	 1.24
	  	 [CANADA ONLY: Employee Plans
	  	 	5	  
		 	 1.25
	  	 Environmental Law(s)
	  	 	6	  
		 	 1.26
	  	 Expected ANOI
	  	 	6	  
		 	 1.27
	  	 [FOR PRE-STABILIZED FACILITIES: Expected Stabilization Date
	  	 	6	  
		 	 1.28
	  	 Facilities
	  	 	7	  
		 	 1.29
	  	 [CANADA ONLY: Facility Employees
	  	 	7	  
		 	 1.30
	  	 Facility Expenses
	  	 	7	  
		 	 1.31
	  	 Facility Mortgage
	  	 	11	  
		 	 1.32
	  	 FF&E
	  	 	11	  
		 	 1.33
	  	 FF&E Reserve
	  	 	11	  
		 	 1.34
	  	 Fiscal Year
	  	 	11	  
		 	 1.35
	  	 Force Majeure
	  	 	11	  
		 	 1.36
	  	 GAAP
	  	 	11	  
		 	 1.37
	  	 Governmental Authority
	  	 	11	  
		 	 1.38
	  	 Gross Revenues
	  	 	11	  
		 	 1.39
	  	 Household Replacements
	  	 	12	  
		 	 1.40
	  	 Index
	  	 	12	  
		 	 1.41
	  	 Intellectual Property
	  	 	13	  

  
 i 

									
		 	 1.42
	  	 Legal Requirements
	  	 	13	  
		 	 1.43
	  	 Management Services
	  	 	13	  
		 	 1.44
	  	 Manager Event of Default
	  	 	13	  
		 	 1.45
	  	 Manager’s System
	  	 	13	  
		 	 1.46
	  	 Manager’s Standards
	  	 	13	  
		 	 1.47
	  	 Master Agreement
	  	 	13	  
		 	 1.48
	  	 Material Adverse Event
	  	 	14	  
		 	 1.49
	  	 Material License
	  	 	15	  
		 	 1.50
	  	 Material Licensure Event
	  	 	15	  
		 	 1.51
	  	 Material Undertaking
	  	 	15	  
		 	 1.52
	  	 [US ONLY: Medicaid
	  	 	15	  
		 	 1.53
	  	 [US ONLY: Medicare
	  	 	16	  
		 	 1.54
	  	 Minor Casualty
	  	 	16	  
		 	 1.55
	  	 Mortgagee
	  	 	16	  
		 	 1.56
	  	 INTENTIONALLY OMITTED
	  	 	16	  
		 	 1.57
	  	 Operating Account
	  	 	16	  
		 	 1.58
	  	 Other Day Reports
	  	 	16	  
		 	 1.59
	  	 Owner Event of Default
	  	 	16	  
		 	 1.60
	  	 Person
	  	 	16	  
		 	 1.61
	  	 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Budget
	  	 	16	  
		 	 1.62
	  	 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Services
	  	 	16	  
		 	 1.63
	  	 Proprietary Marks
	  	 	17	  
		 	 1.64
	  	 [US: Provider Agreements
	  	 	17	  
		 	 1.65
	  	 [CANADA: Province
	  	 	17	  
		 	 1.66
	  	 Quarterly Reports
	  	 	17	  
		 	 1.67
	  	 REIT Compliance Requirements
	  	 	17	  
		 	 1.68
	  	 Related Management Agreement
	  	 	17	  
		 	 1.69
	  	 Resident Occupancy
	  	 	17	  
		 	 1.70
	  	 Resident Occupancy Rate
	  	 	17	  
		 	 1.71
	  	 Shared Expenses
	  	 	17	  
		 	 1.72
	  	 Software
	  	 	17	  
		 	 1.73
	  	 Stabilization or Stabilized
	  	 	18	  
		 	 1.74
	  	 [US: State
	  	 	18	  
		 	 1.75
	  	 Strategic Alliance Agreement
	  	 	18	  
		 	 1.76
	  	 SSLI
	  	 	18	  
		 	 1.77
	  	 SSLI Senior Credit Facility
	  	 	18	  
		 	 1.78
	  	 Sunrise Insolvency Event
	  	 	18	  
		 	 1.79
	  	 Sunrise Party
	  	 	18	  
		 	 1.80
	  	 Term
	  	 	18	  
		 	 1.81
	  	 Third Party
	  	 	18	  
		 	 1.82
	  	 [US: Third Party Payor Programs
	  	 	18	  
		 	 1.83
	  	 Total Casualty
	  	 	18	  
		 	 1.84
	  	 Unit
	  	 	19	  
		 	 1.85
	  	 Ventas, Inc
	  	 	19	  
		 	 1.86
	  	 Ventas Party
	  	 	19	  
		 	 1.87
	  	 Ventas SSL
	  	 	19	  

  
 ii 

									
		 	 1.88
	  	 Additional Defined Terms
	  	 	19	  
		 	 1.89
	  	 Rules of Construction
	  	 	20	  
			
	 ARTICLE II
	  	 APPOINTMENT OF MANAGER
	  	 	20	  
		 	 2.1
	  	 Appointment of Manager
	  	 	20	  
		 	 2.2
	  	 Amended and Restated Management Agreement
	  	 	21	  
		 	 2.3
	  	 [FOR NEW YORK FACILITIES: Certain Provisions Inapplicable
	  	 	21	  
			
	 ARTICLE III
	  	 MANAGEMENT FEE
	  	 	21	  
		 	 3.1
	  	 Management Fee
	  	 	21	  
		 	 3.2
	  	 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Services Fee
	  	 	21	  
			
	 ARTICLE IV
	  	 DUTIES AND RIGHTS OF MANAGER
	  	 	22	  
		 	 4.1
	  	 Authority of Manager
	  	 	22	  
		 	 4.2
	  	 Marketing Services
	  	 	22	  
		 	 4.3
	  	 [US: Hiring and Training of Staff
	  	 	23	  
		 	 4.4
	  	 Management Duties
	  	 	24	  
		 	 4.5
	  	 Manager’s Home Office Employees
	  	 	24	  
		 	 4.6
	  	 Personnel Administration
	  	 	25	  
		 	 4.7
	  	 Purchasing
	  	 	25	  
		 	 4.8
	  	 Resident Agreements
	  	 	26	  
		 	 4.9
	  	 Ancillary Activities
	  	 	26	  
		 	 4.10
	  	 Contracts with Affiliates
	  	 	27	  
		 	 4.11
	  	 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Services
	  	 	27	  
		 	 4.12
	  	 [FOR CANADIAN FACILITIES: Resignation, Termination and Hiring of Facility Employees
	  	 	28	  
			
	 ARTICLE V
	  	 OPERATING PROFITS, CREDITS AND COLLECTIONS, AND PROCEDURE FOR HANDLING

RECEIPTS AND OPERATING CAPITAL
	  	 	28	  
		 	 5.1
	  	 Operating Profits
	  	 	28	  
		 	 5.2
	  	 Master Agreement
	  	 	28	  
		 	 5.3
	  	 Gross Revenues Priority
	  	 	28	  
		 	 5.4
	  	 Credits and Collections
	  	 	29	  
		 	 5.5
	  	 Account
	  	 	29	  
		 	 5.6
	  	 Intentionally Omitted
	  	 	30	  
		 	 5.7
	  	 Impositions
	  	 	30	  
			
	 ARTICLE VI
	  	 FINANCIAL RECORDS
	  	 	30	  
		 	 6.1
	  	 Accounting and Financial Records.
	  	 	30	  
		 	 6.2
	  	 Manager Additional Reports
	  	 	32	  
		 	 6.3
	  	 Access
	  	 	33	  
			
	 ARTICLE VII
	  	 ANNUAL OPERATING BUDGET
	  	 	33	  
		 	 7.1
	  	 Annual Operating Budget
	  	 	33	  
		 	 7.2
	  	 Resolution of Budget Disputes
	  	 	34	  

  
 iii

									
			
	 ARTICLE VIII
	  	 ENVIRONMENTAL MATTERS
	  	 	35	  
		 	 8.1
	  	 Environmental Matters
	  	 	35	  
		 	 8.2
	  	 Costs of Compliance
	  	 	35	  
		 	 8.3
	  	 Environmental Indemnification
	  	 	35	  
		 	 8.4
	  	 Environmental Notices
	  	 	36	  
			
	 ARTICLE IX
	  	 OTHER FINANCIAL MATTERS
	  	 	36	  
		 	 9.1
	  	 Charges
	  	 	36	  
		 	 9.2
	  	 Tax Status
	  	 	36	  
		 	 9.3
	  	 Employee Withholding
	  	 	36	  
		 	 9.4
	  	 Certain Provisions Regarding Currency Matters
	  	 	36	  
			
	 ARTICLE X
	  	 GENERAL COVENANTS AND OWNER AND MANAGER OBLIGATIONS
	  	 	37	  
		 	 10.1
	  	 Covenants Not to Hire
	  	 	37	  
		 	 10.2
	  	 Owner’s Obligations
	  	 	37	  
		 	 10.3
	  	 Financing of the Facility
	  	 	37	  
		 	 10.4
	  	 Refinancing Fee
	  	 	40	  
		 	 10.5
	  	 Asset Disposition Fee
	  	 	40	  
		 	 10.6
	  	 Quiet Enjoyment
	  	 	40	  
		 	 10.7
	  	 Manager’s Obligations
	  	 	41	  
			
	 ARTICLE XI
	  	 REPAIRS, MAINTENANCE AND REPLACEMENTS
	  	 	41	  
		 	 11.1
	  	 Routine Repairs and Maintenance
	  	 	41	  
		 	 11.2
	  	 Capital Expenditures
	  	 	41	  
		 	 11.3
	  	 Owner to Provide Funds
	  	 	44	  
			
	 ARTICLE XII
	  	 INSURANCE; DAMAGE; CONDEMNATION; FORCE MAJEURE
	  	 	45	  
		 	 12.1
	  	 General Requirements
	  	 	45	  
		 	 12.2
	  	 Blanket Policies
	  	 	46	  
		 	 12.3
	  	 Risk Management
	  	 	46	  
		 	 12.4
	  	 Damage and Repair
	  	 	46	  
		 	 12.5
	  	 Condemnation
	  	 	47	  
		 	 12.6
	  	 Material Adverse Orders Restricting Operations
	  	 	48	  
			
	 ARTICLE XIII
	  	 TERMINATION OF AGREEMENT
	  	 	48	  
		 	 13.1
	  	 Termination
	  	 	48	  
		 	 13.2
	  	 Transition upon Termination
	  	 	48	  
			
	 ARTICLE XIV
	  	 DEFAULTS
	  	 	51	  
		 	 14.1
	  	 Events of Default
	  	 	51	  
		 	 14.2
	  	 Remedies of Owner
	  	 	58	  
		 	 14.3
	  	 Remedies of Manager
	  	 	58	  
		 	 14.4
	  	 No Waiver of Default
	  	 	58	  
		 	 14.5
	  	 Interest
	  	 	59	  
		 	 14.6
	  	 Manager’s Right to Specific Performance for Owner’s Wrongful Termination
	  	 	59	  
		 	 14.7
	  	 Owner’s Right to Specific Performance for Manager’s Wrongful Termination
	  	 	59	  

  
 iv 

							
	 ARTICLE XV
	  	 LEGAL ACTIONS AND INDEMNITY
	  	60
		 	 15.1
	  	 Legal Actions
	  	60
		 	 15.2
	  	 Indemnity
	  	60
			
	 ARTICLE XVI
	  	 Regulatory and Contractual Requirements
	  	61
		 	 16.1
	  	 Regulatory and Contractual Requirements
	  	61
		 	 16.2
	  	 Equal Employment Opportunity
	  	62
		 	 16.3
	  	 Equal Housing Opportunity
	  	62
			
	 ARTICLE XVII
	  	 PROPRIETARY MARKS; INTELLECTUAL PROPERTY
	  	62
		 	 17.1
	  	 Proprietary Marks
	  	62
		 	 17.2
	  	 Ownership of Proprietary Marks
	  	62
		 	 17.3
	  	 Intellectual Property
	  	62
		 	 17.4
	  	 Trademark License
	  	63
		 	 17.5
	  	 Breach of Covenant
	  	63
			
	 ARTICLE XVIII
	  	 MISCELLANEOUS PROVISIONS
	  	63
		 	 18.1
	  	 Additional Assurances
	  	63
		 	 18.2
	  	 Estoppel Certificates
	  	63
		 	 18.3
	  	 Subordination, Nondisturbance and Attornment Agreements
	  	64
		 	 18.4
	  	 No Brokerage
	  	64
		 	 18.5
	  	 Costs of Dispute
	  	64
		 	 18.6
	  	 Governing Law; Governing Currency
	  	64
		 	 18.7
	  	 Limitation of Liability; Survival
	  	64
		 	 18.8
	  	 Notices
	  	65
		 	 18.9
	  	 Counterparts
	  	66
		 	 18.10
	  	 Severability
	  	66
		 	 18.11
	  	 Gender and Number
	  	67
		 	 18.12
	  	 Division and Headings
	  	67
		 	 18.13
	  	 Confidentiality of Information
	  	67
		 	 18.14
	  	 Right to Perform
	  	67
		 	 18.15
	  	 Assignment by Manager
	  	67
		 	 18.16
	  	 Assignment by Owner
	  	67
		 	 18.17
	  	 Entire Agreement /Amendment / Conflicts Among Agreements
	  	68
		 	 18.18
	  	 Relationship Between the Parties
	  	68
		 	 18.19
	  	 Force Majeure
	  	69
		 	 18.20
	  	 Right to Inspect
	  	69
		 	 18.21
	  	 Binding Effect
	  	69

  

			
	Exhibit A	  	 Description of Property

		
	Exhibit B	  	 Approved Budget

		
	Exhibit C	  	 Shared Expenses

  
 v 

			
	Exhibit C-1	  	Current Formula and Methodology for Allocation of Shared Expenses
		
	Exhibit D	  	Insurance Coverage and Policy Limits
		
	Exhibit E	  	Financial Reporting Requirements
		
	Exhibit F	  	Cash Management Policies
		
	Exhibit G	  	Formula and Methodology for Determining the Portion of Cluster Advertising Costs that Constitutes Facility Expenses
		
	Exhibit H	  	Form of Capital Expenditure Project Status Report

  
 vi 

 [FIRST AMENDED AND RESTATED2] 

MANAGEMENT AGREEMENT 
 THIS [FIRST AMENDED AND RESTATED] MANAGEMENT AGREEMENT (“Agreement”) is made as of the              day of
            , 2010 (“Amendment Date”) between [SUNRISE SENIOR LIVING MANAGEMENT, INC., a Virginia corporation (“SSLM”), SUNRISE NORTH SENIOR
LIVING LTD., a New Brunswick corporation (“SNSL”)] (the “Manager”), and
                                , a
                                 (the “Owner”). 

RECITALS: 
 A. Owner is the owner of [FOR CANADIAN FACILITIES: [tenant of] [subtenant of]] certain real property located in
                    ,
                     as further described in Exhibit A, attached hereto and made a part hereof, on which is situated a senior
living facility known as Sunrise of                      (hereinafter referred to as the “Facility”). 

B. Owner [FOR CANADIAN FACILITIES: , as successor by assignment from
                     pursuant to that certain Assignment and Assumption of Management Agreement dated as of
                    ,) and Manager are parties to a Management Agreement (“Original Management Agreement”) dated
            , 200             (the “Effective Date”), [FOR CANADIAN FACILITIES DELETE
DEFINITION OF “ORIGINAL MANAGEMENT AGREEMENT” ABOVE AND ADD: as amended by that certain First Amendment to Management Agreement dated as of
                     (as so amended, the “Original Management Agreement”),] pursuant to which Owner appointed Manager as
manager of the Facility and Manager accepted such appointment and agreed to operate the Facility. 
 C. The Original Management
Agreement was governed by the terms and conditions set forth in the Master Agreement dated December 23, 2004 between Sunrise Senior Living, Inc., a Delaware corporation (“SSLI”), SNSL, SSLM, Sunrise REIT Trust, an Ontario
corporation, Sunrise Canadian UPREIT, LP, an Ontario limited partnership, Sunrise of Aurora, LP, an Ontario limited partnership, Sunrise US UPREIT, LLC, a Delaware limited liability company, and Sunrise US Holdings, Inc., a Delaware corporation (the
“Original Master Agreement”), as supplemented by certain provisions contained in (i) that certain letter dated January 14, 2007 between Ventas, Inc., a Delaware corporation (“Ventas, Inc.”) and SSLI
(the “January 14, 2007 Letter Agreement”, and references herein to the January 14, 2007 Letter Agreement shall include such provisions of the Strategic Alliance Agreement (as defined below), as remain of any force or effect
by the terms of the January 14, 2007 Letter Agreement) and (ii) those certain letter agreements dated June 30, 2008 (the “2008 Letter Agreement”) and April 3, 2009 (the “2009 Letter Agreement”),
each between Ventas, Inc. and SSLI (collectively, the January 14, 2007 
  

	2	 In the case of certain Facilities (e.g., Facility Numbers 4037, 4038, 4063, 4064, 4065, 4066, 4076 and 4078), there have been one or more previous
amendments and restatements of the original Management Agreement and, accordingly, in the case of such Facilities, the applicable title of the Management Agreement and the recitals to the Management Agreement will be conformed to appropriately
reflect the history of the applicable Management Agreement. 

  
 1 

 
Letter Agreement, the 2008 Letter Agreement and the 2009 Letter Agreement, as they may have been previously amended and as they may be amended, supplemented and/or restated from time to time
hereafter, the “Letter Agreements”). 
 D. Owner and Manager desire to amend and restate the Original
Management Agreement in its entirety as set forth in this Agreement; provided that this Agreement does not amend, restate or otherwise supersede the Letter Agreements (except as otherwise specifically stated in Section 18.17(b) of this
Agreement), which shall continue to supplement this Agreement, as applicable. 
 E. SSLM, SNSL, SSLI, and Ventas SSL, Inc., a
Delaware corporation, have on this day entered into a First Amended and Restated Master Agreement (the “Master Agreement”), the terms of which, to the extent applicable, are intended to govern this Agreement. 

NOW, THEREFORE, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 

The following terms shall have the following meanings when used in the Agreement: 

1.1 8th Business Day Reports. The term “8th Business Day Reports” shall have the meaning set forth in Section 14.1(a)(v) and are those reports designated as such on Exhibit E attached hereto. 

1.2 Account. The term “Account” means the Operating Account. 

1.3 Accountant. The term “Accountant” means a certified public accountant or firm thereof, which is independent
of Manager and its Affiliates. 
 1.4 Accounting Period. The term “Accounting Period” means and refers
to a calendar month. 
 1.5 Adjusted Net Operating Income (“ANOI”). The term “Adjusted Net Operating
Income” or “ANOI” has the meaning given to the term “ANOI” in the Master Agreement. 
 1.6
Affiliate. The term “Affiliate” means with respect to any person or entity (a “Person”), (i) any Person who directly or indirectly through one or more intermediaries controls, is controlled by or is
under common control with such Person or (ii) any Person of which such Person is the beneficial owner of a twenty-five percent (25%) or greater interest or (iii) any Person who acquires all or substantially all of the assets of such
Person. A Person shall be deemed to control another Person if such Person, directly or indirectly, has the power to direct the management, operations or business of such Person. The term “beneficial owner” is to be determined in accordance
with Rule 13d-3 under the United States Securities Exchange Act of 1934, as amended. 
 1.7 Aggregate Late Deliveries
Limit. The term “Aggregate Late Deliveries Limit” means the failure of Manager to deliver any Other Day Report or any Quarterly Report on or 

  
 2 

 
before the applicable delivery date for such Other Day Report or Quarterly Report (as applicable) set forth on Exhibit E attached hereto four (4) times in the aggregate in any given
calendar year. In the event Manager fails to deliver any Other Day Report or any Quarterly Report on a timely basis after their respective applicable delivery dates set forth in Section 14.1(a)(vi) or Section 14.1(a)(vii),
five (5) or more times in a given calendar year, the Aggregate Late Deliveries Limit shall have been exceeded. For any given calendar year, the determination of whether the Aggregate Late Deliveries Limit has been exceeded is expressly subject
to the terms of Sections 14.1(a)(vi) and 14.1(a)(vii) below. 
 1.8 Agreement. The term
“Agreement” means this [First Amended and Restated] Management Agreement among the parties hereto and any amendments, supplements, restatements and/or replacements thereof or thereto as may be from time to time agreed to in
writing by the parties. 
 1.9 Amendment Date. The term “Amendment Date” has the meaning set forth in
the preamble. 
 1.10 Applicable Local Currency. The term “Applicable Local Currency” means Canadian
Dollars (if the Facility is located in Canada) or US Dollars (if the Facility is located in the United States). 
 1.11
Applicable Translation Rate. The term “Applicable Translation Rate” means a rate for translating Canadian Dollars into US Dollars, and US Dollars into Canadian Dollars, based upon the average exchange rate quoted in The
Wall Street Journal (or, if it ceases to quote such exchange rate, another exchange rate source that is mutually agreed upon by SSLI and Ventas SSL each acting reasonably) as the rate for exchanging Canadian Dollars for US Dollars, and for
exchanging US Dollars for Canadian Dollars, during the one (1) year period ending on (a) the last Business Day of the month, calendar quarter or calendar year as to which any such currency translation is to be made or (b) if
subsection (a) above is not applicable, the last Business Day preceding the date as of which any such currency translation is to be made. 
 1.12 Approved Budget. The term “Approved Budget” means, collectively, the following budgets approved by Owner for the operation of the Facility (which budgets may be submitted to
Owner as one budget for the Facility, with separate line items for each of the following): (i) the Annual Operating Budget described in ARTICLE VII; (ii) the Capital Budget described in Section 11.2(d) hereof; and
(iii) any amendments, supplements, modifications, or additions to either such budget that are otherwise approved by Owner in writing or otherwise permitted by this Agreement. [FOR PRE-STABILIZED FACILITIES: ; and (iii) the Pre-Opening
Budget described in Section 4.11(a)]. The Approved Budget for the 2010 Fiscal Year is attached hereto and made a part hereof as Exhibit B. 
 1.13 Authorizations. The term “Authorizations” means any and all licenses, operating permits, Provider Agreements, CONs, certificates of exemption, approvals, waivers, variances
and other governmental or “quasi-governmental” authorizations necessary for the use of the Facility and receipt of reimbursement or other payments under any Third Party Payor Programs. [ADD CANADA ALTERNATE WITH APPROPRIATE
REFERENCES] 

  
 3 

 1.14 Authorized Officer. The term “Authorized Officer” means any
officer that has been empowered to act on behalf of a business and to enter into agreements. 
 1.15 Bad Debt. The term
“Bad Debt” means actual write-offs of accounts receivable balances deemed to be uncollectible by the Manager and a reasonable reserve for uncollectible accounts, in each case, based on Manager’s historical experience for
communities within Manager’s System. 
 1.16 Base Management Fee. The term “Base Management Fee”
means for calendar year 2012 and each subsequent calendar year that percentage of the Gross Revenues of the Facility for the calendar year in question as is determined pursuant to Section 5 of the Master Agreement but in no case shall the Base
Management Fee be less than five percent (5%) of the Gross Revenues of the Facility. For the period from and including January 1, 2010 through and including March 31, 2010, the Base Management Fee shall be
$            ; for the period from and including April 1, 2010 through and including December 31, 2010, the Base Management Fee shall be three and one half percent
(3.5%) of Gross Revenues of the Facility for such period; and for calendar year 2011 the Base Management Fee shall be three and three quarters percent (3.75%) of Gross Revenues of the Facility for such calendar year. [Adjust based on
Master Agreement] [FOR PRE-STABILIZED FACILITIES: The foregoing notwithstanding, (X) until the Expected Stabilization Date, the term “Base Management Fee” shall mean the greater of (I) six percent (6%) of Gross
Revenues for the Facility, and (II) $            ; and (Y) from and after the Expected Stabilization Date, the Base Management Fee shall be calculated as provided above,
prorated for any partial year from and including the Expected Stabilization Date through the end of the year in which the Expected Stabilization Date occurs.]  

1.17 Business Day. The term “Business Day” means any day on which the New York Stock Exchange
is open for some or all of such day. Notwithstanding the foregoing, however, for purposes of determining the date by which any reports required under this Agreement must be delivered to Owner, where the term “Business Day” is used
in determining the date by which the applicable report(s) must be delivered (e.g., 8th Business Day Reports), the term “Business Day” shall not include any day upon which all offices of the federal government located in Washington, D.C. are closed, it being understood that
the term “Business Day” shall exclude any such day(s) only in those instances, and only for the purposes, described in this sentence. 
 1.18 Capital Transaction. The term “Capital Transaction” means the sale, exchange or disposition of the Facility, the refinancing of the Facility or casualty damage to or
condemnation of the Facility or any part thereof. 
 1.19 Commencement of Management Services. The term
“Commencement of Management Services” means the date on which management services commenced, which occurred on the Effective Date. 
 1.20 CONs. The term “CON” means a certificate of need or similar permit or approval (not including conventional building permits or certificates of occupancy) from a Governmental
Authority related to (i) the construction and/or operation of the Facility for the use of a specified number of beds in a nursing facility, assisted living facility, senior independent living facility,

  
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rehabilitation hospital and/or other permitted use, or (ii) the alteration of any such Facility or (iii) the modification of the services provided at a Facility used as a nursing
facility, assisted living facility, senior independent living facility and/or rehabilitation hospital. 
 1.21 Emergency
Requirements. The term “Emergency Requirements” means any of the following events or circumstances: (i) an emergency threatening the Facility, or the life or property of its residents, invitees or employees;
(ii) material non-compliance with a Legal Requirement; (iii) a condition, the continuation of which is likely to subject Owner or Manager to civil or criminal liability; or (iv) a Force Majeure event that prevents Manager from
managing or operating the Facility pursuant to Manager’s Standards. 
 1.22 [CANADA ONLY: Employee Claim. The
term “Employee Claim” means any claim, action, application, lawsuit, grievance or other proceeding, whether incurred before or after the Effective Date or in connection therewith, by or on behalf of any Facility Employee or by any
governmental authority, or any other person in respect of: any Employee Costs; any breach or alleged breach by Owner, Manager, or any affiliate thereof of any Legal Requirements relating to the Facility Employees including, without limitation,
employment, privacy, occupational health and safety, workplace safety and insurance, labour relations, employment standards and human rights laws; contributions to, premiums for, liabilities in respect of, and deficits under or in respect of, any
Employee Plans; and the transfer of any Facility Employee to Owner or the transfer of any Facility Employee to Manager on termination of this Agreement.] 
 1.23 [CANADA ONLY: Employee Costs. The term “Employee Costs” means all costs, expenses, premiums, payments, contributions or claims included in the Approved Budget and which
are payable to, or payable on behalf of or in respect of, the Facility Employees under any contract of employment, written or oral, express or implied or by operation of law (whether arising pursuant to statute or common law); all payroll costs such
as salary, wages, overtime pay, incentive compensation, vacation and holiday pay, bonuses and retention payments; Canada Pension Plan and Employment Insurance employer contributions; workers’ compensation; workplace safety and insurance
premiums; employer health tax and employer premiums; costs, expenses, shift and pay premiums, payments, contributions to, under or in respect of any Employee Plan, costs of any perquisites provided to the Facility Employees; provided, however, any
tax exigible thereon under Part IX of the Excise Tax Act (Canada) (or any successor or similar tax) shall be paid solely by Manager and shall not be a Facility Expense.] 

1.24 [CANADA ONLY: Employee Plans. The term “Employee Plans” means all oral or written plans,
arrangements, agreements, programs, policies, practices or undertakings with respect to any Facility Employee which provide for or relate to: 
 (a) bonus, profit sharing or deferred profit sharing, performance compensation, deferred or incentive compensation, share compensation, share purchase or share option purchase, share appreciation rights,
phantom stock, employee loans, or any other compensation in addition to salary; 
 (b) retirement or retirement
savings, including, without limitation, registered or unregistered pension plans, pensions, supplemental pensions, registered retirement savings plans and retirement compensation arrangements; or 

  
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 (c) vacation or vacation pay, sick pay, insured or self-insured benefits for
or relating to income continuation or other benefits during absence from work (including short term disability, long term disability and workers’ compensation), hospitalization, health, welfare, legal costs or expenses, medical or dental
treatments or expenses, life insurance, accident, death or survivor’s benefits, supplementary employment insurance, day care, tuition or professional commitments or expenses or similar employment benefits.] 

1.25 Environmental Law(s). [FOR US FACILITIES: The term “Environmental Law(s)” means: (i) the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601 et seq., as now or hereafter amended and the Resource Conservation and Recovery Act of 1976, as now or hereafter amended; (ii) the regulations
promulgated thereunder, from time to time; and (iii) all federal, state, municipal and local laws, rules and regulations (now or hereafter in effect) dealing with the use, generation, treatment, management, storage, disposal or abatement of
Hazardous Materials or protection of human health or the environment.] [FOR CANADIAN FACILITIES: The term “Environmental Law(s)” means: all applicable federal, Provincial, municipal, regional and local laws, including common
law and all statutes, by-laws, rules and regulations and all orders, directives and decisions rendered by, and policies, instructions, guidelines and similar guidance of, any ministry, department or administrative or regulatory agency relating to
the protection of the environment or occupational health and safety, including those pertaining to reporting, licensing, permitting, investigation, remediation and clean up or other remediation or corrective action in connection with any presence,
release, discharge, escape or disposal or threat of same of any Hazardous Materials, as they relate to the Facility.] 
 1.26
Expected ANOI. The term “Expected ANOI” means (a) for 2010 the amount of $            .00 and for 2011, the amount of
$            .00, [FILL IN RESPECTIVE TARGETS FOR THE FACILITY SET FORTH ON LOI SCHEDULE V], and (b) for 2012 and each subsequent year, the Expected ANOI for 2012 or such
subsequent year as adjusted and determined in accordance with the Master Agreement. [FOR A NEW PRE-STABILIZED FACILITY OR NEW STABILIZED FACILITY ADDED AFTER THE AGREEMENT DATE (AS DEFINED IN THE MASTER AGREEMENT), SUBSTITUTE THE FOLLOWING FOR
CLAUSES (a) AND (b) ABOVE: (a) initially, an amount equal to the Adjusted Net Operating Income for the one (1) year period (the “New Stabilized/Pre-Stabilized Facility Period”) commencing on the Expected
Stabilization Date, and (b) commencing with the calendar year following the end of the calendar year that includes the last day of the applicable New Stabilized/Pre-Stabilized Facility Period, and for each subsequent calendar year, the Expected
ANOI for such calendar year or such subsequent calendar year, as adjusted and determined in accordance with the Master Agreement. 
 1.27 [FOR PRE-STABILIZED FACILITIES: Expected Stabilization Date. The term “Expected Stabilization Date” shall mean the first (1st) day of the month following the earlier
of (a) the date by which the Facility is scheduled to achieve initial Stabilization as set forth in the Approved Budget, or (b) the date by which actual Stabilization is achieved for such Facility. [FOR EXISTING PRE-STABILIZED
FACILITIES (AS DEFINED IN THE MASTER AGREEMENT)] [; provided however the Expected Stabilization Date shall be deemed to be January 1, 2011 if the Expected Stabilization Date, as determined above, has not occurred by such date.]] 

  
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 1.28 Facilities. The term “Facilities” means the Facility and all
other Facilities as such term is defined in the Master Agreement. 
 1.29 [CANADA ONLY: Facility Employees. The
term “Facility Employees” means all personnel required for purposes of operating and maintaining the Facility in accordance with Manager’s Standards.] 

1.30 Facility Expenses. The term “Facility Expenses” means those costs and expenses directly related to the
operation, maintenance, repair and staffing of the Facility which are in accordance with the Approved Budget or otherwise approved by the Owner or permitted to be incurred by Manager pursuant to the express terms hereof, and which expenses and
payment of expenses shall be paid by the Manager from the Facility’s Gross Revenues, including, but without duplication: 
 (a) Costs of inventory and supplies used in the operation of the Facility, including any inventory and supplies purchased prior to the Commencement of Management Services not previously paid by Owner or
an Affiliate of Owner; 
 (b) Subject to Section 16.1, costs incurred to Third Parties to prevent,
cure or correct any violation of Legal Requirements with respect to the leasing, use, repair or maintenance of the Facility and any expense incurred in order to obtain or maintain any operating permits or licenses, including any registration fees
and expenses and legal fees associated therewith; 
 (c) Costs incurred to Third Parties to make repairs and
perform all maintenance and preventative maintenance and other routine property maintenance and upkeep services for or at the Facility; 
 (d) Costs incurred to Third Parties for the collection of delinquent rentals collected through an attorney or collection agency and other costs required in connection with the enforcement of any lease or
resident agreement (including reasonable legal fees, disbursements and moving and storage expenses for FF&E and personal property of residents and/or lessees); 

(e) Costs incurred to Third Parties under service contracts for or at the Facility; 

(f) The following costs incurred to Third Parties for advertising and leasing expenses (including promotions, printing and
signs): (i) for advertising and leasing expenses that exclusively relate to the Facility, and/or (ii) for cluster advertising relating to the Facility and other facilities located within a common geographic area or region, and, in the case
of this clause (ii), only a portion of such costs of such cluster advertising shall constitute “Facility Expenses” relative to the Facility and such portion shall be determined in accordance with the formula and methodology set forth on
Exhibit G attached hereto and made a part hereof. Manager shall not materially and adversely (in respect of the Owner) change the formula and methodology employed by Manager in determining the portion of cluster advertising costs that
constitute “Facility Expenses” relative to the Facility from that set forth in Exhibit G and Manager shall consistently account for such cluster advertising expenses allocable to the Facility in accordance

  
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with such formula and methodology. An analysis of such formula and methodology will be provided to Owner by Manager on an annual basis. As part of the annual audit of Shared Expenses (further
described in Section 1.30(t) below), the Accountant will review and verify the formula and methodology employed by Manager in determining the portion of cluster advertising costs that constitute “Facility Expenses” relative to
the Facility; 
 (g) All reasonable Third Party costs and fees of audit, legal, technical, tax, accounting and
other independent professionals or other Third Parties who are retained by Manager to perform services required or permitted hereunder; provided, however, any of the costs and fees described in this subparagraph (g) which constitute
“Shared Expenses” shall be expressly subject to the limitations set forth in this Agreement and the Master Agreement on Shared Expenses; 
 (h) The reasonable cost and expense of technical consultants and operational experts who are employees of Manager or one of its Affiliates, and who perform specialized services (that is, services not
otherwise required to be provided by Manager hereunder for and in consideration of the fees payable hereunder) in connection with Facility work (including, regional office employees and employees of SSLI or any Affiliate thereof who assist with the
Facility operations, which includes an information technology support and help desk); provided, however, any such cost or expense shall only be a “Facility Expense” in the event either (i) the specialized service is necessary in
connection with Facility work performed to address an emergency or (ii) Owner grants its prior written consent to such specialized service being provided or performed (it being understood that any such cost and expense not satisfying clause
(i) or (ii) shall be a “Shared Expense” and, accordingly, shall be subject to the limitations set forth in this Agreement and the Master Agreement on Shared Expenses), and, in any event, such expense will be charged at a
market-based hourly rate based on the actual hours spent performing the work or service; 
 (i) Costs incurred by
Manager for all personnel (i) employed exclusively at the Facility or (ii) employed at the Facility and other facilities, it being understood that the costs incurred for any personnel of the type described in clause (ii) shall be
charged at reasonable market-based rates and shall be allocated to the Facility based solely on the number of hours such personnel are physically present and dedicated to matters relating to the Facility; 

(j) Costs incurred to Third Parties for printed forms and supplies required for use at the Facility; 

(k) Costs of all utilities serving the Facility; 

(l) Costs incurred to Third Parties for printed checks and bank account fees for each bank account reasonably required by
Owner; 
 (m) Costs of insurance at the Facility (“Costs of Insurance”) which include: insurance
premiums; the ultimate costs of self-insured losses and deductibles; claims administration costs; risk management costs; and other program costs including premium taxes, fronting fees, state [provincial] Workers’ Compensation
self-insurance assessments, collateral fees; fidelity bonds; and surety bonds supporting self-insurance programs, and broker fees; 

  
 8 

 (n) Costs incurred to Third Parties in order to prevent a breach under a
lease or a Facility Mortgage, unless such breach is the direct result of a breach by Manager of the terms of this Agreement; 
 (o) The Base Management Fee payable to Manager under the terms of this Agreement, subject to adjustment as provided in the Master Agreement; 

(p) Costs incurred by Manager for information technology systems, Software, equipment, or services (including procurement,
maintenance and upgrades) that are (i) used exclusively at the Facility or (ii) used at the Facility and other facilities and that are charged by the applicable provider based on the number of licenses, users or computers, it being
understood that only the portion of any such costs for licenses, users or computers at the Facility shall be included in Facility Expenses; 
 (q) All Impositions described in Section 5.7; 
 (r) Any
other costs (including expenditures for FF&E, repairs and equipment and capital improvements which are expensed in accordance with GAAP), fees or expenses included in, and which Manager is authorized to incur in accordance with, the Approved
Budget and the terms, conditions and limitations set forth in this Agreement; 
 (s) Anything deemed a Facility
Expense in this Agreement; 
 (t) A reasonable share of the Shared Expenses, (net of any credits-back (or
reversal adjustments) of the Shared Expenses pursuant to Section 4 of the Master Agreement) that reasonably relate to the operating and staffing of the Facility and are reasonably allocable to the Facility. Owner shall not disapprove of, or
unilaterally reduce below [2010] levels, any item shown on Exhibit C. During the annual budget process, Manager shall submit to Owner the costs for the items in Exhibit C. In addition, Manager also shall provide any
proposed additions to Shared Expenses as contemplated by this paragraph, which shall include, but not be limited to: (i) centralized support services and systems engaged in or utilized by Manager for the purpose of furthering the operation of
the Facility in accordance with the Manager’s Standards; and (ii) other centralized or home office expenses which Manager reasonably believes (A) should be allocated to the Facilities and constitute Facility Expenses and are generally
charged as such throughout Manager’s System; and (B) are centralized in order to achieve optimal cost savings and efficiencies for such expenses. Manager shall not materially and adversely (in respect of the Owner) change the formula and
methodology employed by Manager in allocating such Shared Expenses from that employed in respect of the [2010] Approved Budget and shall consistently account for such Shared Expenses in accordance with such formula and methodology. An
analysis of such formula and methodology will be provided to Owner by Manager on an annual basis, and a copy of the current formula and methodology is attached hereto as Exhibit C-1. Any Shared Expenses not shown on Exhibit C,
regardless of whether referred to elsewhere in the definition of Facility Expenses, shall be included as a Facility Expense only if approved as part of the Annual Operating Budget process or upon Owner’s prior written approval, which may be
granted or withheld in Owner’s reasonable discretion; provided, however, that any Shared Expense that relates to, or arises from, an Emergency Requirement shall be authorized. Shared Expenses shall be subject to annual audit at Manager’s
expense, as part of which, the Accountant 

  
 9 

 
will review and verify the formula and methodology employed by Manager in allocating such expenses. Owner and Manager acknowledge and agree that the actual Shared Expenses allocable to the
Facility shall be reduced by the amount of any credits-back allocated to the Facility in accordance with Section 4 of the Master Agreement; and 
 (u) Bad Debt. 
 Except as expressly provided herein, included in the Approved Budget or agreed in
writing by Owner, and except for any Shared Expense that relates to, or arises from, an Emergency Requirement, Facility Expenses shall not include the following: 

(i) Manager’s corporate overhead (except as expressly provided herein or in the Approved Budget). 

(ii) Except as expressly agreed to by Owner, or included in the Approved Budget or as otherwise expressly set forth above,
costs incurred by Manager for salary and wages, payroll taxes, workers’ compensation, bonus compensation, incentive compensation, retirement plan payments, travel expenses, training and other benefits payable to Manager’s corporate office
employees or divisional or regional supervisory employees (including non-incentive stock option grants and any bonus compensation to such employees); 
 (iii) Except as set forth on Exhibit C, centralized accounting and reporting systems, or software related thereto; 

(iv) Costs incurred by Manager for forms, papers, ledgers and other supplies, equipment, copying and telephone of any kind
used at any location other than the Facility; 
 (v) Costs incurred by Manager for political contributions or
charitable donations; 
 (vi) Costs attributable to losses which are covered by the indemnity obligations of
Manager pursuant to Section 15.2 of this Agreement; 
 (vii) Costs incurred by Manager for
advertising expenses of Manager other than costs of marketing the Facility for lease or occupancy, or costs of employment advertisements for positions at the Facility; 

(viii) Costs incurred by Manager for any architect, engineer, accountant, attorney, human resource or other professional
advisor or consultant employed by Manager (as distinct from Third Parties engaged for the performance of such services); 
 (ix) Costs incurred by Manager for dues of Manager or any of its employees in professional organizations or for any of Manager’s employees participating in industry conventions or meetings (except to
the extent included in an Approved Budget or as otherwise specifically approved by Owner); and 
 (x) Any
expenses, capital or otherwise, which are capitalized by Owner in accordance with GAAP. 

  
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 1.31 Facility Mortgage. The term “Facility Mortgage” means any
mortgage, deed of trust or indemnity deed of trust recorded against the Facility as security for a secured loan. 
 1.32
FF&E. The term “FF&E” means furniture, furnishings, fixtures, soft goods, case goods, vehicles and equipment (including telephone systems, facsimile machines, communications and computer systems hardware and software)
located in or on or used exclusively in connection with the operation of the Facility, but shall not include Household Replacements or any Software. FF&E shall be and remain the property of the Owner during the Term and upon the expiration or
termination of this Agreement. 
 1.33 FF&E Reserve. The term “FF&E Reserve” means the notional
FF&E reserve set forth in the Capital Budget. Unless the Manager and Owner otherwise agree, the FF&E Reserve shall be (a) for 2010 the amount of $            .00
[FILL IN RESPECTIVE FF&E RESERVE AMOUNT FOR THE FACILITY SET FORTH ON THE SCHEDULE PREVIOUSLY PROVIDED BY VENTAS], and (b) for 2011 and each subsequent year, an amount equal to the FF&E Reserve for the prior year adjusted by the
percentage increase or decrease in the Index’s annual average (as described in the definition of the “Index”) between the prior year and the year that is two (2) years prior to such year. For example, if the percentage change in
the Index’s annual average from 2010 to 2011 is 1.0%, the FF&E Reserve for 2012 would be increased by 1.0% over the FF&E Reserve for 2011. 
 1.34 Fiscal Year. The term “Fiscal Year” means the calendar year. 
 1.35 Force Majeure. The term “Force Majeure” has the meaning set forth in Section 18.19. 
 1.36 GAAP. The term “GAAP” means United States generally accepted accounting principles as promulgated by the Financial Accounting Standards Board (“FASB”), and
such other accounting standards as may be required by the United States Securities and Exchange Commission or FASB. 
 1.37
Governmental Authority. The term “Governmental Authority” means any federal, State [Province], county, local or municipal government, or political subdivision thereof, any governmental agency, authority, board, bureau,
commission, department, instrumentality, or public body, or any court or administrative tribunal or Board of Fire Underwriters or any similar body to any of the foregoing. 
 1.38 Gross Revenues. The term “Gross Revenues” means, for each Accounting Period, all revenues and receipts of every kind derived from operating the Facility and all departments
and parts thereof, including income (from both cash and credit transactions, net of any fees charged therefor) from monthly occupancy fees, health care fees and ancillary services fees received pursuant to various agreements with residents of the
Facility; income from food and beverage and catering sales; income from telephone charges; income from vending machines; and proceeds, if any, from business interruption or other loss of income insurance (to the extent such insurance either
reimburses on the basis of gross revenues or otherwise covers all expenses including Manager’s fees), all determined in accordance with GAAP; provided, however, that Gross Revenues shall not include: (i) gratuities to
employees at the Facility [FOR 

  
 11 

 
CANADIAN FACILITIES, replace “employees at the Facility” with “Facility Employees”]; (ii) federal, state [provincial] or municipal excise, goods and
services, sales or use taxes or similar taxes imposed at the point of sale and collected directly from residents or guests of the Facility or included as part of the sales price of any goods or services; (iii) proceeds from the sale of FF&E
and any other capital asset; (iv) interest received or accrued with respect to the monies in any operating or reserve accounts of the Facility; (v) any cash refunds, rebates or discounts to residents of the Facility, or cash discounts and
credits of a similar nature, given, paid or returned in the course of obtaining Gross Revenues or components thereof; (vi) proceeds from any sale of the Facility, or any other Capital Transaction; (vii) proceeds of any financing
transaction affecting the Facility; (viii) security or resident fee deposits until such time as the same are applied to current fees and other charges due and payable; (ix) awards of damages, settlement proceeds and other payments received
by Owner in respect of any litigation other than litigation to collect fees due for services rendered from the Facility; (x) proceeds of any condemnation; (xi) proceeds of any casualty or other insurance, other than loss of income or
business interruption insurance (which is included in Gross Revenues); and (xii) payments under any policy of title insurance. Any Bad Debt, or any community fees or deposits that are refunded to residents, shall be credited against Gross
Revenues during the Accounting Period in which such Bad Debt is recognized or such refunds are made, as the case may be, if such amounts were previously included in Gross Revenues. Any Bad Debt which is recognized but is later collected shall be
added to Gross Revenues. 
 1.39 Household Replacements. The term “Household Replacements” means supply
items including linen, china, glassware, silver, uniforms, and similar items, but excluding food, beverages, medical supplies, soaps, shampoos or any other similar consumable product. 

1.40 Index. [FOR US FACILITIES: The term “Index” means the All-Items Consumer Price Index for All Urban
Consumers, U.S. City Average (not seasonally adjusted) (1982-1984 = 100), published by the Bureau of Labor Statistics, U.S. Department of Labor or any successor thereto (the “BLS”), or such other renamed index. If the BLS changes
the base reference period for the Index from 1982-84 = 100, the consumer price index adjustment shall be determined with the use of such conversion formula or table as may be published by the BLS. If the BLS otherwise substantially revises, or
ceases publication of, the Index, then a substitute index for determining consumer price index adjustments, issued by the BLS or by a reliable governmental or other nonpartisan publication, shall be reasonably selected by Owner and Manager.] [FOR
CANADIAN FACILITIES: The term “Index” means the All-Items Consumer Price Index (not seasonally adjusted) for Canada or the equivalent thereof, or any comparable successor index thereof, published from time to time by Statistics
Canada or any other equivalent or duly authorized department of the Government of Canada (“Statistics Canada”). If the Statistics Canada changes the base reference period for the Index from 1992 = 100, the consumer price index
adjustment shall be determined with the use of such conversion formula or table as may be published by Statistics Canada. If Statistics Canada otherwise substantially revises, or ceases publication of, the Index, then a substitute index for
determining consumer price index adjustments, issued by Statistics Canada or by a reliable governmental or other nonpartisan publication, shall be reasonably selected by Owner and Manager.] In any case where this Agreement provides for the
calculation of a year-over-year percentage increase or decrease in the Index from a specified calendar year to a different calendar year, except as otherwise expressly specified, such calculation shall be made by comparing the Index’s annual

  
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average for each of the applicable calendar years (for example, the year-over-year percentage increase in the average annual Index from 2009 to 2010 would be calculated by comparing the
Index’s annual average for 2009 to the Index’s annual average for 2010). The Index’s annual average for a given year is the annual average for such year as stated in the Index, or if no annual average is stated, the mathematical
average of the Index for all months (or other partial year reporting periods, as applicable) of such year. 
 1.41
Intellectual Property. The term “Intellectual Property” means (i) all Software developed and owned by Manager or an Affiliate of Manager; and (ii) all written manuals, instructions, policies, procedures and
directives issued by Manager to its employees at the Facility [FOR CANADIAN FACILITIES, replace “employees at the Facility” with “Facility Employees”] regarding the procedures and techniques to be used in operation of the
Facility. The term “Intellectual Property” shall include Proprietary Marks but does not include the data and information stored or maintained on the Intellectual Property. 

1.42 Legal Requirements. The term “Legal Requirements” means any license, certificate, law, code, rule,
ordinance, regulation or order of any Governmental Authority having jurisdiction over the Manager, business or operation of the Facility or the matters which are the subject of this Agreement, including any resident care or health care, building,
zoning or use laws, ordinances, regulations or orders, environmental protection, employment, workplace safety, occupational health and safety, human rights and labor relations laws and fire department rules. 

1.43 Management Services. The term “Management Services” means the operational and personnel administration
services to be performed by the Manager as described in this Agreement. 
 1.44 Manager Event of Default. The term
“Manager Event of Default” shall have the meaning set forth in Section 14.1(a). 
 1.45
Manager’s System. The term “Manager’s System” means at any particular time the system or group of senior living communities then owned and/or operated or managed by Manager (or one or more of its Affiliates) which
are of a comparable type, size, brand and market orientation as the Facility. 
 1.46 Manager’s Standards. The term
“Manager’s Standards” means, from time to time, the (i) operational standards (for example, staffing levels, compensation plans, resident care and health care policies and procedures, and accounting and financial reporting
policies and procedures) and (ii) the physical standards (for example, amounts and quality of FF&E and frequency of FF&E replacement) that are then generally and consistently implemented at the senior living communities in the
Manager’s System, all in accordance with Legal Requirements, provided, however, that the Manager’s Standards taken as a whole shall at all times be at a level at least reasonably equivalent to such standards in effect as of the Effective
Date. 
 1.47 Master Agreement. The term “Master Agreement” has the meaning provided in Recital E;
provided, however, that in the event that this Agreement becomes an “Affected Management Agreement” (as such term is defined in Section 7.1 of the Master Agreement), then

  
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from and after the applicable “Facility Cessation Date” (as such term is defined in Section 7.2 of the Master Agreement) with respect to this Facility the term “Master
Agreement” as used herein shall mean the “Severed Master Agreement” (as such term is defined in Section 7.2.2 of the Master Agreement). 
 1.48 Material Adverse Event. The term “Material Adverse Event” means the occurrence of any of the following: 

(a) Either (i) an event of default under the SSLI Senior Credit Facility (that is not (a) subject to a valid
forbearance, waiver or amendment eliminating such default or (b) being contested in good faith by SSLI, which such contest has the effect of staying the lender’s remedies) that results in the exercise by the lender of its right to
accelerate the indebtedness due thereunder, or (ii) the expiration or termination of such senior credit facility (without extension, replacement or repayment, or any valid forbearance). 

(b) The occurrence of an event of default by a Sunrise Party (which event of default is not (i) subject to a valid
forbearance, waiver or amendment eliminating such default or (ii) being contested in good faith by the applicable Sunrise Party, which such contest has the effect of staying the lender’s remedies) under a Material Undertaking (as
hereinafter defined) as the result of which (x) the applicable counterparty has notified the applicable Sunrise Party in writing that it is terminating the Material Undertaking, or, in the case of a loan, credit agreement, or other financing
arrangement, that it is accelerating the indebtedness thereunder, and (y) such counterparty under a Material Undertaking has exercised any remedies that would be reasonably expected to result in a Sunrise Insolvency Event (as hereinafter
defined), as reasonably determined by Owner. 
 (c) Entry of a final, non-appealable judgment(s) for the payment
of money shall be rendered against one or more Sunrise Parties, the total of which (after aggregating any and all such final, non-appealable judgments rendered against all Sunrise Parties, it being understood that such aggregation shall be measured
as of a given date and, accordingly, shall not take into account any previous judgment(s) to the extent satisfied by the Sunrise Parties) exceeds Twenty-Five Million and No/100 Dollars ($25,000,000.00) in the aggregate, if recourse in nature, or
Four Hundred Million and No/100 Dollars ($400,000,000.00) in the aggregate, if non-recourse in nature (excluding (i) a judgment as to which, and only to the extent, a reputable insurance company has accepted coverage of such claim, in writing,
it being understood that in the case of partial coverage of a judgment by insurance, for purposes of determining the aggregate amount of outstanding judgments, any portion of such judgment not covered by insurance (or an indemnity, as further
provided below) shall be included, including the amount of any applicable deductible, or (ii) a judgment as to which the applicable Sunrise Party has been indemnified by a creditworthy party, provided such indemnity remains in full force and
effect and has not been canceled, terminated or revoked, it being understood that in the case of partial coverage of a judgment by an indemnity by a creditworthy party, for purposes of determining the aggregate amount of outstanding judgments, any
portion of such judgment not covered by such indemnity (or insurance, as further provided above) shall be included) and within thirty (30) days from the entry of such judgment, such judgment shall not have been discharged; or 

  
 14 

 (d) During any consecutive sixty (60) month period, the termination of
this Agreement and/or the Related Management Agreements with respect to any ten (10) Facilities in the aggregate by Ventas SSL or any Ventas Party as a result of one (1) or more “Manager Events of Default” by the applicable
“Manager” (as defined in this Agreement or the Related Management Agreements, as applicable) under this Agreement or the Related Management Agreements, as applicable (excluding termination on account of a Property Performance Termination
Right or Expense Termination Right (as such terms are defined in the Master Agreement) pursuant to the terms of the Master Agreement). Related Management Agreements that are terminated solely due to cross-default provisions resulting from being in a
pool of mortgage loans, as opposed to a Manager Event of Default with respect to the applicable Facility, shall not count towards the ten (10) Facilities test provided that SSLI pays any and all prepayment penalties, default interest and other
lender fees, costs and expenses contemplated by the applicable loan documents and actually incurred by any Ventas Party in connection with such terminations and with respect to the entire pool in connection with such terminations due to such
cross-default provisions. 
 (e) The termination of management agreements with parties other than a Ventas Party
occurring during any calendar year for any reason if (i) such agreements have annual base management fees representing, either individually or in the aggregate, in excess of twenty-five percent (25%) of SSLI’s consolidated management
fee revenue for the immediately preceding calendar year and (ii) such termination would, in Ventas SSL’s reasonable judgment, be expected to result in a Sunrise Insolvency Event. 

1.49 Material License. The term “Material License” has the meaning set forth in Section 14.1(a)(xiv).

 1.50 Material Licensure Event. The term “Material Licensure Event” has the meaning set forth in
Section 14.1(a)(xv). 
 1.51 Material Undertaking. The term “Material Undertaking” means
(i) any credit, financing or lease obligation(s) of one or more Sunrise Parties that is (are) recourse to the applicable Sunrise Party(ies) and that individually or in the aggregate, at a point in time (not cumulatively), exceeds (exceed) Ten
Million and No/100 Dollars ($10,000,000.00), (ii) any credit, financing or lease obligation(s) of one or more Sunrise Parties that is (are) nonrecourse to the applicable Sunrise Party(ies) [with any credit and financing obligations with respect
to SSLI joint venture properties computed pro rata based on SSLI’s interest in such joint ventures] and that individually or in the aggregate, at a point in time (not cumulatively), exceeds (exceed) One Hundred Million and No/100 Dollars
($100,000,000.00), or (iii) any management agreements with any parties other than a Ventas Party in which a Sunrise Party acts as manager with annual base management fees representing, either individually or in the aggregate, in excess of five
percent (5%) of SSLI’s consolidated management fee revenue for the immediately preceding calendar year. 
 1.52 [US
ONLY: Medicaid. The term “Medicaid” means that certain program of medical assistance, funded jointly by the federal government and the states for impoverished individuals who are aged, blind and/or disabled, and for
members of families with dependent children, which program is more fully described in Title XIX of the Social Security Act (42 

  
 15 

 
U.S.C. §§ 1396 et seq., as amended) and any statutes succeeding thereto, and the regulations promulgated thereunder.] [ADD CANADIAN EQUIVALENT] 

1.53 [US ONLY: Medicare. The term “Medicare” means that certain federal program providing health insurance
for eligible elderly and other individuals, under which physicians, hospitals, nursing facilities, home health care and other providers are reimbursed for certain covered services they provide to the beneficiaries of such program, which program is
more fully described in Title XVIII of the Social Security Act (42 U.S.C. §§ 1395 et seq., as amended) and any statutes succeeding thereto, and the regulations promulgated thereunder.] 

1.54 Minor Casualty. The term “Minor Casualty” means any fire or other casualty which results in damage to the
Facility and/or its contents, and in the reasonable judgment of Manager or Owner (i) the out-of-pocket expenses (whether or not covered by insurance proceeds) of the “Repair and/or Replacement” equals or is less than $100,000.00
(excluding any required insurance deductibles) and (ii) the “Repair and/or Replacement” would take not longer than one hundred and twenty (120) days to substantially complete. For purposes of this paragraph, “Repair
and/or Replacement” shall mean the repair and/or replacement of the Facility and/or its contents to substantially the same condition as existed prior to the fire or other casualty resulting in damage to the Facility and/or its contents.

 1.55 Mortgagee. The term “Mortgagee” means the holder, from time to time, of a Facility Mortgage or
any replacement of a Facility Mortgage. 
 1.56 INTENTIONALLY OMITTED. 

1.57 Operating Account. The term “Operating Account” means the account in Owner’s name [FOR CANADIAN
FACILITIES: replace “Owner’s name” with “the name of                 ”] to be maintained by the Owner during the Term in accordance
with Section 5.5 from which Facility Expenses are to be paid in accordance with the Approved Budget and the terms of this Agreement and into which Gross Revenues are to be deposited. 

1.58 Other Day Reports. The term “Other Day Reports” has the meaning set forth in Section 14.1(a)(vi)
and are those reports designated as such on Exhibit E attached hereto. 
 1.59 Owner Event of Default. The term
“Owner Event of Default” has the meaning set forth in Section 14.1(b). 
 1.60 Person. The
term “Person” means an individual, sole proprietorship, partnership, limited partnership, corporation, limited liability company, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body
corporate, joint venture or co-ownership, and a natural person in his or her capacity as a trustee, executor, administrator or other legal representative. 
 1.61 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Budget. The term “Pre-Opening Budget” shall have the meaning set forth in Section 4.11(a).]  

1.62 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Services. The term “Pre-Opening Services” shall mean the
services performed by Manager during the period 

  
 16 

 
commencing on the Effective Date and continuing throughout construction up to the date on which the Facility receives a certificate of occupancy sufficient to permit the occupancy, use and
operation of the Facility, as described in Section 4.11(a) of this Agreement.] 
 1.63 Proprietary
Marks. The term “Proprietary Marks” means all trademarks, trade names, symbols, logos, slogans, designs, insignia, emblems, devices, service marks and distinctive designs of buildings and signs, or combinations thereof, which
are used to identify the Facility or Manager’s System. The term “Proprietary Marks” shall also include all trade names, trademarks, symbols, logos, designs, etc, which are used in connection with the operation of the Facility during
the Term. The term “Proprietary Marks” shall include all present and future Proprietary Marks, whether they are now or hereafter owned by Manager or any of its Affiliates, and whether or not they are registered under the laws of the United
States, Canada or any other country. 
 1.64 [US: Provider Agreements. The term “Provider
Agreements” means any agreements under which healthcare facilities are eligible to receive payment under Medicare, Medicaid or any Third Party Payor Program from Governmental Authorities or non-public entities.] [INSERT CANADIAN
EQUIVALENT, IF APPLICABLE] 
 1.65 [CANADA: Province. The term “Province” means the Province
in which the Facility is located.] 
 1.66 Quarterly Reports. The term “Quarterly Reports” has the
meaning set forth in Section 14.1(a)(vii) and are those reports designated as such on Exhibit E attached hereto. 
 1.67 REIT Compliance Requirements. The term “REIT Compliance Requirements” means the applicable REIT Compliance Requirements contained in the Master Agreement. 

1.68 Related Management Agreement. The term “Related Management Agreement” means each of the Management
Agreements (as such term is defined in the Master Agreement) for Facilities other than the Facility. 
 1.69 Resident
Occupancy. The term “Resident Occupancy” means the total number of residents living in a senior living community calculated as at a certain date. 
 1.70 Resident Occupancy Rate. The term “Resident Occupancy Rate” with respect to the Facility means the Resident Occupancy, divided by the maximum number of residents capable of
being housed by such Facility, as of the date hereof, as adjusted from time to time by Owner and Manager in the context of the Approved Budget, expressed as a percentage. 
 1.71 Shared Expenses. The term “Shared Expenses” means, subject to the terms of Section 1.30(t) hereof, the expenses set forth on Exhibit C attached hereto.

 1.72 Software. The term “Software” means all computer software and accompanying documentation
(including all future upgrades, enhancements, additions, substitutions and modifications thereof) that are owned, licensed or leased by Manager and used in connection with its operations at the Facility. 

  
 17 

 1.73 Stabilization or Stabilized. The term “Stabilization” or
“Stabilized”, with respect to a senior living community, means a community which has had a Resident Occupancy Rate of 92% or greater on the last day of each of the preceding three consecutive months. 

1.74 [US: State. The term “State” shall mean the State in which the Facility is located.] 

1.75 Strategic Alliance Agreement. The term “Strategic Alliance Agreement” means that certain Strategic Alliance
Agreement dated December 23, 2004 by and between SSLI and Sunrise Senior Living Real Estate Investment Trust, as the provisions of such agreement were terminated (with certain limited exceptions) pursuant to the terms of the January 14,
2007 Letter Agreement. 
 1.76 SSLI. The term “SSLI” shall mean Sunrise Senior Living, Inc., a Delaware
corporation. 
 1.77 SSLI Senior Credit Facility. The term “SSLI Senior Credit Facility” means the
Credit Agreement by and among SSLI and certain subsidiaries, as the borrowers, the subsidiaries of the borrower as identified therein, as the Guarantors, Bank of America, N.A., as the Administrative Agent, Swing Line Lender and L/C Issuer, Wachovia
Bank, National Association as Syndication Agent, and other lender parties thereto, dated as of December 2, 2005 (as amended) as the same may be amended, modified or supplemented and including any and all successor credit facilities (whether or
not with the same lender(s)). 
 1.78 Sunrise Insolvency Event. The term “Sunrise Insolvency Event” has
the meaning set forth in Section 14.1(a)(xix). 
 1.79 Sunrise Party. The term “Sunrise
Party” means any of (i) Manager, (ii) SSLI or (iii) any Affiliate of Manager or SSLI. 
 1.80
Term. The “Term” began on the Effective Date, and, unless sooner terminated, shall continue until
[                    , 20    ]. 
 1.81 Third Party. The term “Third Party” has the meaning ascribed thereto in the Master Agreement. 
 1.82 [US: Third Party Payor Programs. The term “Third Party Payor Programs” means any third party payor programs pursuant to which healthcare facilities qualify for payment
or reimbursement for medical or therapeutic care or other goods or services rendered, supplied or administered to any admittee, occupant, resident or patient by or from any Governmental Authority, bureau, corporation, agency, commercial insurer,
non-public entity, “HMO,” “PPO” or other comparable party.] [INSERT CANADIAN EQUIVALENT, IF APPLICABLE] 
 1.83 Total Casualty. The term “Total Casualty” means any fire or other casualty which results in damage to the Facility and/or its contents, and in the reasonable judgment of
Manager or Owner, (i) the out-of-pocket expenses (whether or not covered by insurance proceeds) of the “Repair and/or Replacement” exceeds $2,000,000.00 (excluding any required insurance deductibles) and (ii) the “Repair
and/or Replacement” would take longer than one year to 

  
 18 

 
substantially complete. For purposes of this paragraph, “Repair and/or Replacement” shall mean the repair and/or replacement of the Facility and/or its contents to substantially
the same condition as existed prior to the fire or other casualty resulting in damage to the Facility and/or its contents. 

1.84 Unit. The term “Unit” shall mean one of the
             [FILL IN APPLICABLE NUMBER OF UNITS IN THE FACILITY SET FORTH ON SCHEDULE PREVIOUSLY PROVIDED BY VENTAS] separate apartments or living units within the Facility, it
being understood that the number of “Units” in the Facility is subject to adjustment from time to time, and, in any event, any change in the total number of “Units” in the Facility shall be subject to Owner’s reasonable
approval and verification. 
 1.85 Ventas, Inc. The term “Ventas, Inc.” has the meaning provided in the
preamble. 
 1.86 Ventas Party. The term “Ventas Party” means Ventas, Inc., Ventas SSL and any other
Affiliate of Ventas, Inc. 
 1.87 Ventas SSL. The term “Ventas SSL” means Ventas SSL, Inc., a Delaware
corporation, or any successor or assign of such entity, including any successor by merger, reorganization or acquisition of all or substantially all of its assets. 
 1.88 Additional Defined Terms. As used herein the following terms shall have the meanings set forth in the introductory paragraph, recital or section indicated below: 

 

			
	 2008 Letter Agreement
	  	Recital C
	 2009 Letter Agreement
	  	Recital C
	 AAA
	  	7.2
	 Amendment Date
	  	Introductory Paragraph
	 Annual Operating Budget
	  	7.1
	 Arbitration Notice
	  	7.2
	 Asset Disposition Fee
	  	10.5
	 Bulk Purchasing
	  	4.7(b)
	 Capital Budget
	  	11.2(d)
	 Capital Expenditures
	  	11.2(a)
	 Cash Management Policies
	  	5.5(b)
	 Cross Default
	  	14.2
	 Discounts
	  	4.7(c)
	 Effective Date
	  	Recital B
	 Facility
	  	Recital A
	 Financial Deliveries Response Requirement
	  	6.2(a)
	 Hazardous Materials
	  	8.1
	 Home Office Employees
	  	4.5
	 Impositions
	  	5.7
	 Indemnitee(s)
	  	8.3
	 Insurance Program
	  	12.1(a)
	 January 14, 2007 Letter Agreement
	  	Recital C
	 Letter Agreements
	  	Recital C

  
 19 

			
	 Litigation Deliveries Requirement
	  	15.1(b)
	 Litigation Matter
	  	15.1(b)
	 Loan Documents
	  	10.3(e)
	 Losses
	  	15.2
	 Manager Indemnified Parties
	  	15.2
	 Marketing Services
	  	4.2
	 Manager
	  	Introductory Paragraph
	 Non-Default Violations
	  	16.1
	 Ordinary Course CapX Project
	  	11.2(h)
	 Original Management Agreement
	  	Recital B
	 Other Approved Electronic Deliveries
	  	18.8
	 Refinancing Fee
	  	10.4
	 Required Certification Reports
	  	6.1(e)
	 Subject Event of Default
	  	14.2
	 Subsequent Owner
	  	18.3
	 Suspension
	  	14.2
	 Tax Deliveries Response Requirement
	  	6.2(b)
	 Trademark License
	  	17.4
	 Violation Notice
	  	11.2(e)

 1.89 Rules of
Construction. Unless the context otherwise requires: 
 (a) A capitalized term has the meaning assigned to
it; 
 (b) References to Articles, Sections and Exhibits shall refer to articles, sections and exhibits of this
Agreement, unless otherwise specified; 
 (c) This Agreement shall be construed without regard to any presumption
or other rule requiring construction against the party that drafted and caused this Agreement to be drafted; 

(d) References to “including” in this Agreement shall mean “including, without limitation,” whether or
not so specified; and 
 (e) The word “extent” in the phrase “to the extent” shall mean the
degree to which a subject or other theory extends and such phrase shall not mean “if.” 
 ARTICLE II 

APPOINTMENT OF MANAGER 
 2.1 Appointment of Manager. Owner hereby appoints Manager and Manager hereby accepts appointment, subject to the terms and conditions of this Agreement, as the sole and exclusive manager for the
daily operation and management of the Facility. Except as otherwise provided herein, Manager shall have discretion in the operation, direction, management and supervision of the Facility, in accordance with Manager’s Standards, subject only to
the limitations expressed herein. Manager accepts said appointment and agrees to operate the 

  
 20 

 
Facility during the Term of this Agreement in accordance with the terms and conditions hereinafter set forth. 
 2.2 Amended and Restated Management Agreement. This Agreement shall govern and control (i) with respect to all events, acts, omissions, liabilities, and obligations first occurring, arising,
or accruing from and after the Amendment Date, and (ii) as to the Base Management Fee, from and after January 1, 2010. The Original Management Agreement shall govern and control with respect to all events, acts, omissions, liabilities, and
obligations first occurring, arising, or accruing prior to the Amendment Date, or in the case of the Base Management Fee, prior to January 1, 2010; provided, however, that if any breach or default of the Original Management Agreement has
occurred and not been cured as of the Amendment Date, then the terms of this Agreement shall govern and control with respect to cure periods and remedies. 
 2.3 [FOR NEW YORK FACILITIES: Certain Provisions Inapplicable. Owner and Manager acknowledge that, as of the Amendment Date, the Facility is not licensed as a healthcare facility, and that,
therefore, Manager may not provide healthcare services to residents of the Facility. Accordingly, until such time as the Facility becomes licensed as an “Assisted Living Residence”, Manager shall not be required by the terms of this
Agreement to provide any healthcare services to residents or undertake any actions that, without such license, it would be prohibited from providing or undertaking by the rules and regulations of the New York Department of Health applicable to
Manager and/or the Facility. Owner and Manager anticipate that, until such time, if any, that the Facility becomes licensed as an “Assisted Living Residence”, healthcare services will continue to be provided to residents at the Facility,
if at all, by an appropriately licensed third party health services company. THE TERMS OF THIS SECTION 2.3 SHALL CONTROL OVER ANY CONTRARY PROVISIONS CONTAINED IN THIS AGREEMENT AND NOTHING CONTAINED IN THIS AGREEMENT SHALL REQUIRE OR BE
DEEMED TO REQUIRE MANAGER TO TAKE ANY ACTION THAT WOULD VIOLATE ANY RULE OR REGULATION OF THE NEW YORK DEPARTMENT OF HEALTH APPLICABLE TO MANAGER AND/OR THE FACILITY.] 
 ARTICLE III 
 MANAGEMENT FEE 

3.1 Management Fee. Subject to the Master Agreement, as compensation for the Management Services to be rendered by Manager
hereunder, Owner hereby instructs Manager on a monthly basis, in arrears, to pay itself, through retention of Gross Revenues from the Operating Account or other means, a fee equal to the Base Management Fee. 

3.2 [FOR PRE-STABILIZED FACILITIES: Pre-Opening Services Fee. As compensation for the Pre-Opening Services to be rendered
during the period described in the definition of Pre-Opening Services, in accordance with Section 4.11, Manager shall be entitled to a pre-opening services fee equal to
             ($            ), to be paid monthly in arrears, ratably over such period.] 

  
 21 

 ARTICLE IV 
 DUTIES AND RIGHTS OF MANAGER 
 4.1 Authority of Manager. Subject to
the terms of this Agreement and the Approved Budget, Facility operations shall be under the exclusive supervision and control of Manager who shall be responsible for the proper and efficient operation of the Facility. Subject to the terms of this
Agreement, Manager shall have discretion and control, free from interference, interruption or disturbance, in all matters relating to day-to-day management and operation of the Facility, including the following: fees and charges for providing
accommodations, food services, care services, and related services to residents and their guests; supervision of resident care; credit policies; food and beverage services; employment policies; executing, modifying and terminating licenses and
concessions for commercial space within the Facility (provided, however, that the term of any such license or concession shall not extend beyond the Term of this Agreement); receipt and disbursement of funds; procurement of inventories, supplies and
services; promotion and publicity; and, generally, all activities necessary for the operation of the Facility consistent with this Agreement and Manager’s Standards. Notwithstanding the generality of the foregoing, Manager shall only operate
the Facility as a senior living community. Manager shall not establish a skilled nursing unit within the Facility without Owner’s approval in its sole and unfettered discretion. 

4.2 Marketing Services. Manager shall provide comprehensive marketing services which shall include, but not be limited to, the
following services (the “Marketing Services”): 
 (a) Prepare a marketing plan and budget as
part of the Approved Budget, 
 (b) Direct the marketing efforts for the Facility in accordance with
Manager’s Standards, and 
 (c) Plan and implement community outreach, public relations and special events
programs. 

  
 22 

 4.3 [US: Hiring and Training of Staff. Manager shall be solely
responsible for the hiring and training of all Facility staff. All personnel hired for purposes of operating and maintaining the Facility shall be employed, trained and paid by Manager, and the salaries, costs, benefits and training of such
employees shall be Facility Expenses (subject to the Approved Budget or other written approval by Owner and the limitations with respect to Shared Expenses contained in the definition thereof and in the definition of Facility Expenses). The
salaries, costs and benefits of the employees shall be competitive with the community in which the Facility is located and generally commensurate with the salaries, costs and benefits paid by Manager in other facilities it owns or manages in the
State, subject to the Approved Budget. Subject to the Approved Budget or other written approval by Owner and the limitations with respect to Shared Expenses contained in the definition thereof and in the definition of Facility Expenses, Manager may
provide a bonus program or other bonus compensation for its employees at the Facility providing benefits consistent with the benefits provided by Manager throughout Manager’s System. Manager shall comply with all Legal Requirements on all
employment matters and shall not enter into any agreement with any employees that purports to bind the Owner.] 

[CANADA: Hiring and Training of Staff. Manager shall be solely responsible for the hiring, on behalf of Owner, and training
of all Facility Employees. All Facility Employees shall be employed and paid by Owner and Manager shall be responsible for processing payroll and other administrative matters related to such employees. Manager shall establish or maintain Employee
Plans for the Facility Employees. Each Facility Employee employed on the Effective Date shall be eligible to become a member of, and will be eligible to participate in, all Employee Plans effective at the start of the day on the Effective Date.
Thereafter, other Facility Employees will be eligible to participate in all Employee Plans in accordance with the terms thereof. Manager shall credit each Facility Employee with service credited to the Facility Employee with the applicable affiliate
of Manager for all purposes of the Employee Plans, including vacation and vacation pay entitlements, eligibility for retiree, life, medical and dental benefits. Manager shall take into account any time that has been accumulated with the applicable
affiliate of Manager towards satisfying any pre-existing condition limitation, evidence of insurability requirement or waiting period for benefit coverage with respect to the Employee Plans for each Facility Employee and his/her eligible dependants
prior to the Effective Date. Any eligible claims for benefits incurred by a Facility Employee will be eligible for payment under the Employee Plans. Manager shall provide each Facility Employee with annual vacation and vacation pay in accordance
with such Facility Employee’s existing entitlement and applicable laws. The salaries, costs and benefits of the Facility Employees shall be competitive with the community in which the Facility is located and generally commensurate with the
salaries, costs and benefits paid by Manager in other facilities it owns or manages in the Province, subject to the Approved Budget. Subject to the Approved Budget and the limitations with respect to Shared Expenses contained in the definition
thereof and in the definition of Facility Expenses, Manager may provide a bonus program or other bonus compensation for the Facility Employees providing benefits consistent with the benefits provided by Manager throughout Manager’s System.
Manager shall comply with all Legal Requirements on all employment matters, shall on behalf of Owner pay all Taxes in connection with the Facility Employees (provided, however, any tax under Part IX of the Excise Tax Act (Canada) (or any successor
or similar tax) shall be paid solely by Manager and shall not be a Facility Expense) and shall not enter into any agreement with any Facility Employees that purports to bind Owner. Owner shall reimburse Manager for all Employee Costs and the amount
so reimbursed shall be a 

  
 23 

 
Facility Expense. For purposes of this Section 4.3, “Taxes” means all taxes, premiums, withholdings, remittances and contributions, including income taxes, goods and
services taxes, health taxes, employment insurance premiums and Canada Pension Plan contributions.] 
 4.4 Management
Duties. As Manager of the Facility, Manager shall be responsible for diligently, and in good faith, implementing all aspects of the operation of the Facility in accordance with the terms of this Agreement, Legal Requirements, Manager’s
Standards and the Approved Budget, and shall have responsibility and commensurate authority for all such activities. In addition to any other duties set forth in this Agreement, Manager shall use diligent and good faith efforts to (provided that the
term “diligent and good faith efforts” as used in this clause shall not be deemed to limit, qualify or waive any other more stringent standard of performance expressly set forth in this Agreement): 

(a) Enter into all contracts, leases and agreements required in the ordinary course of business for the supply, operation,
maintenance and service of the Facility (including food procurement, trash removal, pest control and elevator maintenance) and, subject to Gross Revenues being available, pay the costs of all such services when due; 

(b) Purchase such inventories, provisions, food, supplies and other expendable items as are necessary to operate and
maintain the Facility in the manner required pursuant to this Agreement; 
 (c) Recruit, hire, supervise, train
and discharge all employees to be employed at the Facility [FOR CANADIAN FACILITIES, replace “employees to be employed at the Facility” with “Facility Employees to be employed at the Facility”] to be employed at the
Facility; 
 (d) Provide care to residents of the Facility as provided for in the resident agreement agreed to by
the parties; 
 (e) Set all resident fees and use commercially reasonable efforts to collect such fees;

 (f) Oversee, manage and direct all day-to-day operations; and 

(g) Obtain, renew and maintain all licenses and permits on behalf of, or for the benefit of, Owner or its subsidiary
necessary in order to operate the Facility in accordance with Legal Requirements and the terms of this Agreement. 
 4.5
Manager’s Home Office Employees. As part of the provision of the services provided by Manager, Manager shall from time to time make its employees who are not working directly at the Facility (the “Home Office Employees”)
available to the on-site management staff for consultation and advice related to the Facility. Home Office Employees include Manager’s home office staff and staff at other facilities managed by Manager and its Affiliates with experience in
areas such as accounting, budgeting, human resources, marketing, food service, construction and purchasing. Owner may reasonably request such services, but the decision to provide Home Office Employees shall be within the sole discretion of Manager.
The services of 

  
 24 

 
Home Office Employees shall be provided at no additional charge to Owner, unless otherwise specified herein. Should Owner request a type, form or level of service that Home Office Employees do
not provide in the normal course of operations to carry out the scope of services described in this Agreement, Manager shall (i) provide such services by Home Office Employees for an additional cost to be agreed to in advance by Manager and
Owner, which cost shall be a Facility Expense, or (ii) if such services cannot be provided by Manager’s Home Office Employees or if Manager and Owner cannot agree on the cost thereof, and Owner so directs Manager in writing, use
commercially reasonable efforts to locate and contract for such services from outside consultants, the cost of which shall be a Facility Expense if approved by Owner. 
 4.6 Personnel Administration. Manager shall be responsible for recruiting, hiring, training, promoting, assigning, supervising and discharging the personnel of the Facility [FOR CANADIAN
FACILITIES, replace “personnel of the Facility” with “Facility Employees”] and shall be responsible for the formulation, implementation, modification and administration of wage scales, rates of compensation, employee
insurance, employee taxes, in-service training, attendance at seminars or conferences, staffing schedules, job descriptions and personnel policies with respect to the personnel of the Facility [FOR CANADIAN FACILITIES, replace “personnel of
the Facility” with “Facility Employees”] in accordance with the Approved Budget. [FOR CANADIAN FACILITIES: Manager shall be responsible for, and have exclusive control over, the day-to-day supervision and management of the
Facility Employees, including discipline of the Facility Employees up to and including suspension and dismissal. Manager shall be responsible for negotiating all collective agreements and for managing all grievances and arbitrations and all
settlement proceedings in connection therewith. Manager may schedule the Facility Employees to work in accordance with the requirements of Manager, subject, in the case of unionized employees, to the requirements of the applicable collective
agreements.] 
 4.7 Purchasing. 

(a) Manager shall use, on behalf of the Facility, such purchasing systems and procedures developed by or otherwise
available to Manager for all items that are consistent with the Approved Budget. Any purchase by Manager made pursuant to or otherwise ancillary to this Agreement shall be made with Manager acting for and at the expense of the Facility or Owner.
Owner acknowledges that the Manager is not a merchant and thus is not making any representations or warranties with respect to the goods or services purchased by the Manager for use at the Facility, implied or otherwise. Manager shall fully disclose
to Owner any material interest of Manager and/or Affiliate in any vendor and shall be governed by Section 4.7(b) and Section 4.10 in respect of any dealings therewith. 

(b) Manager shall use commercially reasonable efforts to secure favorable pricing for goods and services purchased for the
Facility from one or more vendors (if more than one suitable and creditworthy vendor with a local market presence (where applicable) is continually available) by taking advantage of the significant purchasing power of Manager and its Affiliates
through purchasing programs for multiple facilities managed by Manager or its Affiliates (“Bulk Purchasing”), and Manager may charge as Facility Expenses a portion of any Shared Expenses incurred by Manager or its Affiliates with
respect to such Bulk Purchasing, in 

  
 25 

 
accordance with and subject to the limitations on Shared Expenses set forth in this Agreement; provided, that: 

(1) The aggregate cost to Owner for goods or services purchased through Bulk Purchasing (including out-of-pocket costs
incurred by Manager for related freight, storage, installation, duties, fees and taxes and any Shared Expenses, in each case allocable to Bulk Purchasing) shall, to the extent that such costs could be readily ascertainable by Manager in its
reasonable belief, be less than the costs that a third party would charge on an arm’s length competitive basis, to the extent that such costs could be readily ascertainable by Manager, for goods, supplies and services of comparable quality and
character purchased for the Facility alone in Manager’s reasonable belief; 
 (2) Manager, or any Affiliate,
as applicable, shall credit to the Facility a proportionate share of any Discounts with respect to Bulk Purchasing, as provided in Section 4.7(c), below; and 

(3) Upon reasonable request from time to time by Owner, Manager shall provide Owner with information regarding pricing,
Discounts, Shared Expenses and allocation of Discounts and Shared Expenses with respect to Bulk Purchasing, and Owner shall have the right, at its expense, subject to Section 6.3 and upon reasonable notice to Manager, to review or audit
Manager’s and its Affiliates’ books and records solely with respect to such matters at the Facility or at Manager’s or its Affiliates’ offices, as applicable. 

(c) Manager shall credit to the Facility any rebates, sponsorship fees, discounts and similar considerations given in
connection with purchases made for the Facility (collectively, “Discounts”), all of which shall be retained by the Facility for the benefit of Owner and properly accounted for to reduce Facility Expenses, as follows:
(i) Discounts given to the Facility in connection with a purchase made solely for the Facility shall be credited in full to Facility Expenses; and (ii) Discounts given in connection with Bulk Purchasing shall be credited to Facility
Expenses of the Facility pro rata based on purchasing volume of the Facility related to the Bulk Purchasing leading to the Discount. 
 4.8 Resident Agreements. Manager shall provide to Owner forms of resident agreements, leases or other occupancy agreements used in the leasing of the Facility upon request. Manager shall act on
behalf of Owner in executing resident agreements, resident leases and resident occupancy agreements. All such agreements shall comply with Legal Requirements. Standard form resident agreements shall have a term not to exceed one year. 

4.9 Ancillary Activities. Manager and/or its Affiliates shall have the right, with Owner’s prior written approval or as a
part of the Approved Budget, to utilize the Facility for ancillary activities, the revenues from which will not be included in Gross Revenues and will be Manager’s property, so long as (i) such ancillary activities in no way impair the
health and safety of the residents or the quality of services provided to them by Manager hereunder, (ii) such ancillary activities are outside the scope of the senior living services being provided to residents on a usual basis as of the
Amendment Date, (iii) Owner receives a fair market rental and reimbursement for any space or equipment in the Facility being utilized or utilities being consumed and (iv) no employees of Manager [FOR CANADIAN FACILITIES: or
Facility 

  
 26 

 
Employees] whose salaries and benefits are being paid [FOR CANADIAN FACILITIES: or reimbursed, respectively,] by Owner are utilized in the conduct of any ancillary activities. The
foregoing shall not prohibit employees at the Facility [FOR CANADIAN FACILITIES, replace “employees at the Facility” with “Facility Employees”] from making referrals to prospective residents to more appropriate services,
and such employees may receive referral fees for such referrals to the extent referral fees are permitted under applicable federal, state [provincial] or local laws. 
 4.10 Contracts with Affiliates. Manager shall not engage or pay any compensation to any Affiliate of Manager for the provision of services in connection with this Agreement unless (a) such
party is fully qualified, licensed where applicable, and experienced to provide the required services, (b) both the scope of services and the compensation payable to such Affiliate for the services are consistent with then current market
standards, (c) Manager discloses in advance such proposed engagement to Owner as a transaction with an Affiliate of Manager and provides detail as to the services to be provided and the compensation to be paid, and (d) Owner approves such
engagement and payment, such approval not to be unreasonably delayed, denied or withheld. 
 4.11 [FOR PRE-STABILIZED
FACILITIES: Pre-Opening Services. Manager shall provide the following services to Owner commencing as of the Effective Date and continuing throughout construction up to the date on which the Facility receives a certificate of occupancy
sufficient to permit the occupancy, use and operation of the Facility (the “Pre-Opening Services”): 
 (a) Prepare and submit to Owner for Owner’s approval (i) a budget for the period from the execution hereof until the opening of the Facility to the public (the “Pre-Opening
Budget”), including all costs to be incurred in connection with the development, design and construction management services under the applicable development agreement, the Pre-Opening Services and the Marketing Services and the sources of
funds and (ii) operating and capital budgets and financial projections for the operation of the Facility upon opening. 
 (b) Review all applicable licensing issues and obtain on Owner’s behalf (and in Owner’s name, to the extent permissible under applicable law) all necessary licenses for the Facility. 

(c) Determine appropriate staffing, prepare job descriptions and locate, hire, and train administrative, resident services
and food service staffs. Owner acknowledges that certain employees will be hired prior to the Commencement of Management Services. 
 (d) Prepare the Facility for occupancy, including causing the Facility to be equipped with all FF&E, case goods and systems necessary for its operation as a state-of-the-art, prototypical Sunrise
Facility. 
 (e) Obtain all necessary Authorizations to operate the Facility. Manager shall provide, at no
additional cost to Owner, all required preparation of documents, records and filings necessary to maintain all required licenses for the Facility. Any fees due for the filing of applicable licenses shall be Facility Expenses. 

  
 27 

 (f) Prepare and submit to Owner on a weekly basis a leasing status and
progress report, setting forth such information as Owner may reasonably request, including, without limitation, a leasing traffic report, a summary of deposits received and of nonrefundable deposits and a summary of resident agreements signed during
such week.] 
 4.12 [FOR CANADIAN FACILITIES: Resignation, Termination and Hiring of Facility Employees. If a
Facility Employee conducts himself or herself in a manner that constitutes grounds for immediate suspension or termination at law or if Manager, in its sole discretion, determines that it wishes to suspend or terminate a Facility Employee, then
Manager shall so notify Owner. Owner shall suspend or terminate the Facility Employee in accordance with the direction of Manager. Owner shall, at the direction of Manager from time to time, hire any new Facility Employees on such terms and
conditions as Manager may direct, including in respect of salary and other compensation, subject to compliance with Legal Requirements. Owner shall not hire any new Facility Employee without the prior consent of Manager. Upon the termination of this
Agreement for any reason, Manager shall indemnify Owner in respect of all Employee Claims resulting from the termination of a Facility Employee as a result of the termination of this Agreement.] 

ARTICLE V 

OPERATING PROFITS, CREDITS AND COLLECTIONS, AND 
 PROCEDURE FOR HANDLING RECEIPTS AND OPERATING CAPITAL 
 5.1 Operating
Profits. Manager shall be responsible for collecting all Gross Revenues and fees billed to residents and for paying Facility Expenses as agreed in the Approved Budget. All Gross Revenues shall be the exclusive property of the Owner and all cash
collections of Gross Revenues shall be deposited promptly and directly into the Operating Account. In addition to, and without limitation of, Manager’s obligations under this Section 5.1 (or elsewhere under this Agreement), Manager
shall be required to: 
 (a) invoice residents on not less than a monthly basis in a manner consistent with
commercially reasonable practices in the senior living industry, 
 (b) collect all Gross Revenues and fees
billed to, or otherwise payable by, residents on a timely basis in a manner consistent with commercially reasonable practices in the senior living industry; and 
 (c) use commercially reasonable efforts to pay Facility Expenses as and when due (subject, however, to Owner’s obligation under Section 11.3 below to ensure that the Operating Account has
sufficient funds or overdraft (or other) capacity to meet all Facility Expenses). 
 5.2 Master Agreement. The Facility
and this Agreement are subject to the Master Agreement, and in the event of a conflict between the terms of the Master Agreement and this Agreement, the terms of the Master Agreement shall prevail. Without limiting the foregoing, the Base Management
Fee shall be subject to adjustment as provided in the Master Agreement. 
 5.3 Gross Revenues Priority. In each Fiscal
Year, the following items shall be paid from Gross Revenues, if available, in the following order of priority: 

  
 28 

 (a) Facility Expenses (which shall include the Base Management Fee), and

 (b) The remaining revenues, after the payments provided for in subsection (a) above, to the Owner.

 If the portion of Gross Revenues to be paid pursuant to Section 5.3(a) above is insufficient in any Fiscal Year
to pay such amount in full for such Fiscal Year, any amount left unpaid shall accrue beyond such Fiscal Year. Manager shall, no less than quarterly on a year-to-date basis, notify Owner of the performance of the Facility in comparison to the Annual
Operating Budget. Each such notice shall include, in summary form, an analysis of the cause of any material deviation from the Approved Budget and any material change to Manager’s underlying assumptions, operating objectives and competitive
analysis, if any. 
 5.4 Credits and Collections. Manager shall install credit and collection policies and procedures,
and Manager shall institute monthly billing by the Facility, and the steps necessary for collection of accounts and monies owed to the Facility, all in accordance with applicable Legal Requirements. This may include the institution of legal
proceedings, in the name of Owner, Manager and/or the Facility, to collect such accounts or to enforce the rights of Owner or Manager as creditor under any contract in connection with the rendering of any service or the purchase of any goods, if
necessary after Manager has used commercially reasonable efforts to collect such accounts, or to enforce such rights without the institution of such proceedings. Any and all reasonable costs and/or fees charged by a Third Party in connection with
the collections and/or enforcement set forth in this Section shall be included in Facility Expenses. 
 5.5 Account.

 (a) Owner shall maintain the Operating Account in the banks, savings and loan associations, and other
financial institutions approved by Manager, acting reasonably. The Account shall be in Owner’s name [FOR CANADIAN FACILITIES: replace “Owner’s name” with “the name of
            ”], and withdrawals from such Account shall be made by representatives of Manager, as agent for the Owner, whose signatures have been authorized by Owner to
access the Account subject to a limitation on the maximum amount of any check as specified by Owner, acting reasonably. The Account shall be segregated from other of Owner’s accounts (other than accounts in respect of other senior living
facilities owned by Owner (or an Affiliate of Owner) and managed by Manager (or an Affiliate of Manager)). It is Owner’s responsibility to provide the funds needed for the proper and efficient operation of the Facility and consistent with the
terms of this Agreement, which funds shall be provided by funds available to be withdrawn from, such Account at times and in amounts as required pursuant to the Approved Budget and otherwise as required by the terms of this Agreement. Reasonable
petty cash funds shall be maintained at the Facility. 
 (b) Without limitation of the foregoing or any of the
other applicable terms and provisions of this Agreement, Manager shall implement and comply with the cash management policies set forth on the attached Exhibit F (collectively, the “Cash Management Policies”). Any changes to
the Cash Management Policies shall be subject to Owner’s prior written approval in its sole discretion. 

  
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 5.6 Intentionally Omitted. 

5.7 Impositions. All Impositions (defined below) which accrue during the Term of this Agreement (or are properly allocable to such
Term under GAAP) shall be paid by Manager from Gross Revenues, as a Facility Expense, before any fine, penalty or interest is added thereto or lien placed upon the Facility or this Agreement, unless payment thereof is stayed; provided,
however, that nothing herein shall impose upon Manager responsibility for funding payment of Impositions from Manager’s own funds. Owner shall, within five (5) Business Days after the receipt of any invoice, bill, assessment, notice
or other correspondence relating to any Imposition, furnish Manager with a copy thereof. Owner may initiate proceedings (or direct Manager to initiate proceedings) to contest any Imposition (in which case each party agrees to sign the required
applications and otherwise cooperate with the other party in expediting the matter), and all reasonable costs of any negotiations or proceedings with respect to any such contest shall be paid from Gross Revenues and shall be a Facility Expense.

 The term “Impositions” means all levies, taxes, assessments and similar charges,
including the following: real estate taxes, personal property taxes, gross receipt taxes, sales taxes, goods and services taxes, all water, sewer or similar fees, rents (including rents and other costs incurred for ground leases related to the
Facility), rates, charges, excises or levies, vault license fees or rentals; license fees; inspection fees and other authorization fees and other charges by a Governmental Authority of any kind or nature whatsoever (other than fines, penalties,
costs and expenses which are the obligation of Manager pursuant to the provisions of Section 16.1 below), whether general or special, ordinary or extraordinary, foreseen or unforeseen, or hereinafter levied or assessed of every character
(including all interest and penalties thereon), which at any time during or in respect of the Term of this Agreement may be assessed, levied, confirmed or imposed on Owner or Manager with respect to the Facility or the operation thereof, or
otherwise in respect of or be a lien upon the Facility (including on any of the inventories or Household Replacements now or hereafter located therein). Impositions shall not include (i) any income taxes payable by Owner or Manager or
(ii) any corporate, franchise or doing business tax, estate, inheritance, succession or transfer tax imposed on Owner or Manager, all of which shall be paid solely by Owner or Manager (as applicable), not from Gross Revenues or any other funds
generated by or held with respect to the Facility; provided that a tax which may be designated or referred to as a franchise or doing business tax but which is in effect a tax on gross receipts or revenues shall be included in the definition of
Impositions notwithstanding clause (ii) above, including, without limitation, (a) any franchise or margin tax, as in effect as of the date hereof, that is required to be paid under Chapter 171 of the Texas Tax Code or due to House Bill
No. 3, 79th Legislative, 3rd Called Session, 2006 levied against Owner or Manager and/or the
Facility in lieu of ad valorem taxes on the Facility or otherwise as a result of property tax reform in the State of Texas, (b) the Michigan Business Tax and/or the Michigan Modified Gross Receipts Tax, as in effect as of the date hereof, and
(c) the franchise tax imposed by the State of North Carolina, as in effect as of the date hereof. 
 ARTICLE VI

 FINANCIAL RECORDS 
 6.1 Accounting and Financial Records. 

  
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 (a) Manager shall, at its own expense, establish and
administer accounting procedures and controls and systems for the development, preparation and safekeeping of records and books of accounting relating to the business and financial affairs of the Facility, including payroll, accounts receivable and
accounts payable, and shall prepare monthly, quarterly and annual financial reports (including profit and loss statements) in accordance with the requirements of Exhibit E attached hereto. Exhibit E attached hereto shall be
reviewed annually by Manager and Owner as part of the Approved Budget. Such records shall be kept consistent with GAAP and, as applicable, shall compare monthly and year-to-date results with the Approved Budget. Manager shall cooperate with
Owner’s accounting department and external independent auditors in the preparation of the Owner’s annual audit and preparation of its income tax returns. Without limiting Manager’s obligations under Exhibit E or Owner’s
rights with respect to Section 14.1(a)(v), Manager acknowledges and agrees that (i) the timely delivery of the 8th Business Day Reports is most critical with respect to those calendar months that are the last month of a calendar
quarter, and (ii) accordingly, with respect to such calendar months, Manager shall use commercially reasonable best efforts to deliver such information on or prior to the eighth (8th) Business Day of such calendar month. 

(b) Manager shall also cooperate with Owner to provide any third-party lenders on the Facility with any reasonable
Facility-related financial information required by such third-party lenders under the terms of any such loan. If required by such third-party lenders, Manager shall certify such reports as true and correct to the best of its knowledge and
belief. In the event that Manager reasonably incurs any third-party, out-of-pocket costs in connection with its obligations under this Section 6.1(b), Owner shall reimburse Manager for Manager’s third-party, out-of-pocket costs
within thirty (30) days after Owner’s receipt of written demand, together with supporting invoices, therefor.  
 (c) The costs of Owner’s annual audit and/or preparation of the income tax returns for the Facility for Owner shall, if Owner elects to conduct such audit and/or prepare such returns, as applicable,
be an Owner’s expense, not a Facility Expense. 
 (d) As soon as available, and in any event no later than
thirty (30) days after the end of each calendar year, Manager shall deliver to Owner a list and general description of all ancillary activities that are currently being performed at the Facility as of the date such list is delivered to
Owner. Such ancillary activities list shall be accompanied by a statement, executed by the Authorized Officer of Manager that certifies, to the best of such person’s knowledge and belief, that (i) the financial information relating
to the ancillary activities described in the preceding sentence is true, correct and complete in all material respects, and (ii) that the ancillary activities list described in the preceding sentence is true and correct in all material
respects. 
 (e) Concurrently with the delivery of the quarterly financial statements described in
Section 6.1(a) above, Manager shall deliver to Owner a statement, executed by the Authorized Officer of Manager that certifies, to the best of such person’s knowledge and belief, that each of the Required Certification Reports
delivered to Owner on or prior to the date of such certified statement in accordance with the terms of this Section 6.1 is true, correct and complete in all material respects. As used herein, the term “Required Certification
Reports” means and includes the following (each as identified on Exhibit E attached hereto): (i) the Community Statement of Profit and Loss, (ii) the Portfolio Statement of Profit and Loss, (iii) the Portfolio

  
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Trial Balance, (iv) the Consolidated Transaction Upload File, (v) the Consolidated Statement of Profit and Loss, (vi) the Consolidated Trial Balance and (vii) the Consolidated
Quarterly Statement of Profit and Loss. 
 6.2 Manager Additional Reports. In addition to the reports required pursuant
to Section 6.1, Manager shall keep Owner reasonably informed as to the financial status, condition, and operation of the Facility and as to any State [Province] or local reporting requirements in connection with the licenses and
permits necessary for Manager to operate the Facility, with written reports and such other or special reports as Manager may from time to time determine are necessary or which Owner may reasonably request, with any and all such reports to be
delivered by Manager to Owner within such reasonable period of time as Owner shall request in writing. Manager acknowledges and agrees that its duty to keep Owner reasonably informed as to the matters described herein includes the affirmative
obligation to establish and maintain internal communications and internal reporting procedures so that Manager’s corporate office is kept timely informed of any such matters as to which Facility employees and/or regional or supervisory
personnel of Manager and its Affiliates become aware as necessary to enable Manager to fulfill its obligations under this Section 6.2. Without limiting the foregoing: 

(a) Manager shall provide substantive responses within four (4) Business Days to any good faith written request by
Owner for additional information related to, or clarifications regarding, the monthly financial information required to be delivered by Manager pursuant to Exhibit E that is reasonably required to timely and accurately complete and file the
periodic financial reporting requirements of Owner or its Affiliates (the “Financial Deliveries Response Requirement”). 
 (b) Manager shall provide substantive responses within five (5) Business Days to any good faith written request by Owner for additional information or clarifications regarding previously submitted
information reasonably required to timely and accurately complete and file Owner’s or its Affiliates’ tax returns (the “Tax Deliveries Response Requirement”). 

(c) As soon as available, and in any event within ninety (90) days after the end of each calendar year, Manager shall
deliver to Owner a report describing in reasonable detail the status of the Facility’s compliance with all material Authorizations for such Facility. In addition, not later than thirty (30) days after the commencement of each Fiscal Year
during the Term, Manager shall deliver to Owner copies of any and all previously undelivered copies of any and all material Authorizations (together with any renewals or extensions thereof) certified by Manager as accurate and complete. 

(d) As soon as available, and in any event no later than thirty (30) days after the end of each calendar quarter,
Manager shall deliver to Owner a quarterly consolidated survey deficiency summary report, indicating whether any survey, citation or report alleging any material deficiency with respect to the Facility has been issued during the prior calendar
quarter and, if so, setting forth the identity of the Governmental Authority that issued such survey, citation or report, a description of the alleged material deficiency and the timetable or deadline for remedying same and Manager’s plan for
curing such deficiency. Manager shall also deliver 

  
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to Owner promptly after request therefor by Owner any other Facility specific survey reports reasonably requested by Owner. 

(e) Manager shall deliver to Owner such supplements to the reports required under this Section 6.2 or
Exhibit E, and such other information and reports (including non-financial information), as Mortgagee may reasonably request from time to time, provided such supplements, and such information and reports, are consistent with the types of
supplements, reports and information generally utilized by institutions within the healthcare or financing industry. 
 6.3
Access. Owner shall have the right, at all reasonable times during the usual business hours of the Manager, to inspect the Facility, and audit, examine and make copies of books of account (including electronic copies thereof) maintained by
Manager with respect to the Facility. Such right may be exercised through any agent or employee designated by Owner or by an independent public accountant or chartered accountant designated by Owner. Further, at the end of the Term of this
Agreement, or upon other termination of this Agreement, as provided herein, copies of all books and records kept for the Facility, including all records kept on electronic media, and accounts and funds belonging to each Facility, are to be promptly
delivered to Owner in a form readable by generally available software. Manager shall have the right to locate any and all books of account and other records maintained by Manager with respect to the Facility at Manager’s corporate office.
Manager shall make adequate space available to Owner at Manager’s corporate office to audit, examine and make copies of such books of account and other records, and Manager shall be under no obligation to relocate such records to the Facility
for Owner’s review. In the event of any such audit, the final accounting shall be controlling over any interim accountings and the parties agree to make any necessary corrective financial adjustments determined by any such audit. 

ARTICLE VII 

ANNUAL OPERATING BUDGET 
 7.1 Annual Operating Budget. Manager shall, within the time limits set forth on Exhibit E, deliver to Owner for Owner’s approval a draft operations budget for the next Fiscal Year
for the Facility, and a final operations budget, and set forth an estimate, on an Accounting Period basis, of Gross Revenues and Facility Expenses, together with an explanation of anticipated changes to resident charges, payroll rates and positions,
non-wage cost increases, the proposed methodology and formula employed by Manager in allocating Shared Expenses, and all other factors differing from the current Fiscal Year. The budget, as proposed, shall be considered by Owner and, in consultation
between Owner and Manager, the budget for the Facility for the ensuing Fiscal Year will be prepared by the Manager with the final contents of the budget to be determined mutually by Manager and Owner (the “Annual Operating Budget”).
The proposed Annual Operating Budget shall include, in form and content at least consistent with that provided for in the 2010 Annual Operating Budget, a narrative description of underlying assumptions, operating objectives and relevant competitive
analysis. Such annual budget process shall be conducted on an open book basis, and Owner shall have the right, at all reasonable times during the usual business hours of the Manager, to examine and make copies of books of account and other
information (including electronic copies thereof) maintained or collected by Manager and its Affiliates with respect to each item to be included in the budget. 

  
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Such right may be exercised through any agent or employee designated by Owner or by an independent public accountant or chartered accountant designated by Owner. If the new Annual Operating
Budget is not finalized, or if Owner shall fail to approve the newly proposed budget, in each case, by December 15 of the then expiring year, Manager shall operate under the expired Annual Operating Budget, increased by 50% of the percentage
change in the Index between October of such expiring year and October of the year immediately preceding such expiring year, until a new budget is approved or determined pursuant to the procedures established in Section 7.2; provided,
however that if [the BLS / Statistics Canada] changes the publication frequency of the Index so that the Index is not available for October of the applicable year, adjustment shall be based on fifty percent (50%) of the percentage
difference between the Index for the closest preceding month for which the Index is available and the Index for the same month of the preceding year. During any period the Facility is operating under the expired Annual Operating Budget, variance
reports will be based on the expired Annual Operating Budget. Manager shall use diligent and good faith efforts to operate the Facility as provided herein so that the actual Gross Revenues, costs, and Facility Expenses of the Facility during any
applicable period of Owner’s fiscal year shall be at least consistent with the Annual Operating Budget. 
 7.2
Resolution of Budget Disputes. If the parties, each acting in good faith, cannot agree as to a proposed Annual Operating Budget for any year by June 30 of such year, then (a) upon written request by either party, the other party
shall stipulate in writing as to which line item or line items of the proposed Annual Operating Budget are in dispute and its proposed amount for each such line item and (b) such dispute shall be resolved through arbitration as provided in this
Section 7.2. In such event either Owner or Manager may initiate arbitration as to such disputed line items by delivering written notice (“Arbitration Notice”) to the other party, and filing at the Chicago, Illinois
regional office of the American Arbitration Association (the “AAA”) three copies of such Arbitration Notice and three copies of this Section 7.2, together with the appropriate filing fee as provided in the AAA’s
then current schedule of fees. Such Arbitration Notice shall include a copy of the proposed Annual Operating Budget and identify the specific line items as to which the parties have failed to agree, the amount which the notifying party proposes for
each such line item, and if known to the notifying party, the amount which the other party proposes for each such line item. In the event that either party invokes arbitration as provided above, such budget dispute shall be settled by binding
arbitration in Chicago, Illinois administered by the AAA pursuant to the Expedited Procedures under its Arbitration Rules for the Real Estate Industry, as modified by this Section 7.2, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Anything in the applicable rules of the AAA to the contrary notwithstanding, as to each disputed line item of the proposed Annual Operating Budget the arbitrator must choose between
Owner’s proposal for that line item and Manager’s proposal for that line item and may not compromise between the two or select some other amount. The cost of the arbitration shall be paid by Manager if the arbitrator selects Owner’s
proposal in its entirety and by Owner if the arbitrator selects Manager’s proposal in its entirety; provided that if multiple line items are in dispute and the arbitrator selects some amounts proposed by Owner and some amounts proposed by
Manager, the cost of the arbitration shall be shared equally by the parties. 

  
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 ARTICLE VIII 
 ENVIRONMENTAL MATTERS 
 8.1 Environmental Matters. In the event of
the discovery of material non-compliance with Environmental Law related to Hazardous Materials (as defined below) on any portion of the Facility during the Term of this Agreement, Owner shall promptly remedy such matter to achieve material
compliance, including, if required, the removal of such Hazardous Materials, together with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with all Environmental Laws. Owner shall indemnify, defend and hold
Manager harmless from and against all loss, costs, liability and damage (including engineers fees, reasonable attorneys’ fees and expenses and the cost of litigation) arising from the aforementioned non-compliance with Environmental Laws
(except to the extent that Manager caused or contributed to such matters or is liable for such loss, costs, liability or damages pursuant to Section 8.3 of this Agreement); and this indemnification obligation of Owner shall survive for
one (1) year after termination of this Agreement, for conditions that arose or existed before such termination. This duty includes, but is not limited to, costs associated with personal injury or property damage claims as a result of the
presence prior to the expiration or sooner termination of this Agreement of Hazardous Materials in, upon or under the soil or ground water of the Facility in violation of any Environmental Law. Upon written notice from Manager, Owner shall undertake
the defense, at its sole cost and expense, of any indemnification duties set forth under this Section 8.1, in which event, Owner shall not be liable for payment of any duplicative attorneys’ fees incurred by Manager.
“Hazardous Materials” shall mean and include any substance or material containing one or more of any of the following: “hazardous material,” “hazardous waste,” “hazardous substance,” “regulated
substance,” “petroleum,” “pollutant,” “contaminant,” or “asbestos” as such terms are defined in any applicable Environmental Law in such concentration(s) or amount(s) as may impose clean-up, removal,
monitoring or other responsibility under the Environmental Laws, as the same may be amended from time to time, or which may present a significant risk of harm to residents, invitees or employees of the Facility. 

8.2 Costs of Compliance. Subject to the provisions of Section 8.3 below, and except to the extent that Manager caused
or contributed to such matters described in Section 8.1 of this Agreement, all costs and expenses of the aforesaid removal or remediation of Hazardous Materials from the Facility, and of the aforesaid compliance with all Environmental
Laws, and any amounts paid to Manager pursuant to the indemnity set forth in Section 8.1, shall be paid by Owner, either as a Facility Expense or non-routine Capital Expenditure, all as determined in accordance with GAAP. 

8.3 Environmental Indemnification. To the extent not otherwise covered by insurance maintained by either Manager or Owner, Manager
shall protect, indemnify and hold harmless Owner, its trustees, directors, officers, agents, employees and beneficiaries, and any of their respective successors or assigns with respect to their interest in the Facility (collectively, the
“Indemnitees” and, individually, an “Indemnitee”) for, from and against any and all debts, liens, claims, causes of action, administrative orders or notices, costs, fines, penalties or expenses (including
engineers’ fees, reasonable attorneys’ fees and expenses and the cost of litigation) imposed upon, incurred by or asserted against any Indemnitee resulting from, either directly or indirectly, the presence during the Term in, upon or under
the soil or ground water of the Facility or any properties surrounding the Facility of any Hazardous Materials in violation of any 

  
 35 

 
Environmental Law, to the extent that any of the foregoing arises by reason of the gross negligence or willful misconduct of Manager, except to the extent the same also arises from the negligence
or wrongful conduct of a Third Party or any other Indemnitee. This duty includes, but is not limited to, costs associated with personal injury or property damage claims as a result of the presence prior to the expiration or sooner termination of
this Agreement of Hazardous Materials in, upon or under the soil or ground water of the Facility in violation of any Environmental Law. Upon written notice from the indemnified party and any other of the Indemnitees, Manager shall undertake the
defense, at its sole cost and expense, of any indemnification duties set forth under this Section 8.3, in which event, Manager shall not be liable for payment of any duplicative attorneys’ fees incurred by the Indemnitee. The
indemnity obligation of Manager set forth in this Section 8.3 shall survive for one (1) year after termination of this Agreement. 
 8.4 Environmental Notices. Each party shall undertake reasonable efforts to notify the other party concerning the presence of any material non-compliance with Environmental Laws or Hazardous
Materials on or under the Facility of which the notifying party has knowledge; provided, however, that, unless required by Legal Requirements, the parties shall otherwise maintain such information confidential. 

ARTICLE IX 

OTHER FINANCIAL MATTERS 
 9.1 Charges. As part of the Annual Operating Budget and at other times as determined by Manager, acting reasonably, Manager will establish the overall rate structure of the Facility, including
residency room charges, charges for all ancillary services, and charges for supplies, medication, and special services performed by Facility personnel. All such charges shall take into account the financial obligations of the Facility, the level of
rates at other comparable facilities, and the importance of providing housing, services and care at a competitive rate. 
 9.2
Tax Status. Subject to the provisions of this Agreement, Manager shall use commercially reasonable efforts to cause the Facility to be operated in a manner to best assure that Owner and the Facility receive all benefits of federal, state
[provincial], county, municipal and city or district tax exemptions and/or credits available thereto. Manager shall provide Owner any reasonably available data in its possession relating to the Facility which Owner or its Affiliates may need
for the preparation of federal and state [provincial] tax returns. Manager shall provide such information upon request by the Owner and in a timely manner so that Owner and its Affiliates shall have sufficient time to prepare and file any
necessary tax returns. Manager shall not be responsible for the preparation of Owner’s or its Affiliates’ federal or state [provincial] tax returns. 
 9.3 Employee Withholding. Manager shall use diligent and good faith efforts to comply with all Legal Requirements concerning the withholding of taxes and other deductions from employee wages.

 9.4 Certain Provisions Regarding Currency Matters. In the absence of any contrary provisions in this Agreement,
any monetary calculations or payments that are required under this 

  
 36 

 
Agreement and that relate solely to this Facility, including with respect to the ANOI, Expected ANOI, Gross Revenues, Base Management Fee, or Facility Expenses, shall be made in the Applicable
Local Currency and all other payments and calculations required under this Agreement shall be made in US Dollars. 
 ARTICLE X

 GENERAL COVENANTS AND OWNER AND MANAGER OBLIGATIONS 

10.1 Covenants Not to Hire. It is expressly understood and agreed by Owner and Manager that, during the Term and [FOR CANADIAN
FACILITIES: , except as expressly provided herein in respect of Facility Employees,] for a period of one year thereafter, each party shall not, and shall not permit any Affiliate, directly or indirectly, to hire, employ, offer to employ,
contract with, induce to terminate the employment of, attempt to hire, or in any way contact regarding employment, any person employed by the other party without the written consent of the party acting as the employer, it being understood and agreed
that, in the event of termination of this Agreement, for any reason whatsoever, both parties shall fully cooperate with one another to ensure a smooth transition of management. 

10.2 Owner’s Obligations. Owner hereby agrees to comply with all of the provisions of this Agreement applicable to it and to
perform all obligations of Owner as otherwise set forth herein. Owner further agrees to take all steps reasonably necessary to facilitate Manager’s provision of management services hereunder, and to ensure, consistent with the provisions
herein, that Owner, Owner’s employees and agents provide necessary assistance and cooperation to Manager in connection with Manager’s provision of management services hereunder. 

10.3 Financing of the Facility. 
 (a) Manager shall use commercially reasonable efforts to cooperate with Owner, as may be reasonably requested by Owner, to obtain financing or replacement financing (as applicable) for the Facility on
favorable terms (e.g., providing prospective Mortgagees with information about Manager generally available to the public from a publicly traded company, and/or contacting prospective Mortgagees at the request and on behalf of Owner with whom Manager
has business relationships). Owner shall have the right to encumber all of the assets that comprise the Facility, any part thereof, or any interest therein, including the land on which the Facility is located, the Facility building and all
improvements thereto and all FF&E and equipment and operating supplies placed in or used in connection with the operation of the Facility as contemplated in any Facility Mortgage that is entered into by Owner; provided, however, that Owner shall
use its commercially reasonable efforts to cause any such Mortgagee to grant reasonable non-disturbance to Manager pursuant to Section 18.3. The amount of any replacement first mortgage financing encumbering the Facility shall not exceed
(i) seventy-five percent (75%) of the fair market value of the Facility or (ii) if the Facility Mortgage is secured by the Facility and one or more other facilities to which the Master Agreement applies and which are owned by Owner
and managed by Manager or its Affiliates, seventy-five percent (75%) of the fair market value of the Facility and each of such other facilities on an aggregate basis, in each case as determined by a licensed real estate appraiser reasonably
approved by Manager. 

  
 37 

 (b) If Owner, at its discretion, shall obtain replacement financing and
encumber its interest in the Facility by a new Facility Mortgage, Owner shall furnish Manager with the post office address where notices may be served upon such new Mortgagee, in which case: 

(1) Simultaneously with the giving of any notice of default or termination to Owner, Manager will send a copy of such
notice by registered or certified mail to such Mortgagee. 
 (2) Manager will not exercise its right of
termination hereunder with respect to any default by Owner if, within any applicable cure period for such default, such Mortgagee gives Manager written notice of its intention to cure such default and cures such default within the applicable cure
period. 
 (c) Manager will not unreasonably refuse to consent to any requested modifications or amendments to
this Agreement if required by a proposed Mortgagee as a condition to making a Facility Mortgage loan to Owner on its interest in the Facility, provided that such modification or amendment does not diminish the amount or formula for the fees or
reimbursements becoming due to Manager hereunder, does not subordinate (unless non-disturbance in the form and substance acceptable to Manager, acting reasonably, is granted to Manager) Manager’s interest to the Facility Mortgage and does not
otherwise materially and adversely affect Manager’s rights and interest under this Agreement. Notwithstanding the foregoing, the terms of this Section 10.3(c) are expressly subject to the terms of Section 10.3(d) below
and, accordingly, Manager shall execute any requested modifications or amendments to this Agreement if requested by a proposed Mortgagee as a condition to making a Facility Mortgage loan to Owner, provided the terms of any such amendment or
modification are commercially reasonable for senior housing communities similar in nature and ownership structure to the Facility or to the other facilities to which the Master Agreement applies. Any determination of whether any amendment or
modification requested by an agency lender is commercially reasonable shall take into account the dominance of agency lenders (including Fannie Mae and Freddie Mac) in the financing of senior housing communities, the terms customarily required by
such agency lenders in connection with mortgage loans secured by senior housing communities similar in nature and ownership and management structure to the Facility or to the other facilities to which the Master Agreement applies, the then current
availability of mortgage financing for assets similar to the Facility, the then current reputation and financial condition of SSLI and its Affiliates and the conditions of the financial and financing markets in general. Manager shall not be required
to execute any such amendment or modification that adversely alters the formula for, or amount of, Manager’s compensation, unless Ventas SSL or another creditworthy Affiliate thereof agrees to compensate Manager for such change. If the Manager
so requests, during the amendment and modification process with the proposed Mortgagee, (i) Owner shall use good faith efforts to provide Manager reasonable opportunities to discuss and negotiate any such requested amendment or modification
with the proposed Mortgagee to the extent Manager believes in good faith such amendment or modification is not commercially reasonable, and (ii) to the extent that Owner, in its good faith judgment, concurs that such amendment or modification
is not commercially reasonable, Owner shall use good faith, commercially reasonable efforts to assist Manager in seeking a commercially reasonable outcome to such dispute; provided that such negotiations do not delay

  
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closing of the proposed financing and do not result in additional cost to Owner other than incremental legal fees, and provided further that Manager acknowledges that Owner’s view of
what constitutes a commercially reasonable outcome may differ from Manager’s, and Manager agrees that Owner (1) shall not be obligated to ensure any particular outcome, (2) shall have no obligation to incur any cost in
connection with or as a result of such negotiation (other than incremental legal fees), or to accept or agree to any changes in the economic terms of its proposed financing, and (3) shall have no liability in the event that the proposed
Mortgagee does not agree, in whole or in part, to Manager’s preferred outcome. 
 (d) Manager shall execute
such documents containing such terms as requested by a proposed Mortgagee as a condition to making a Facility Mortgage loan to Owner, provided the terms of any such document are commercially reasonable for senior housing communities similar in
nature and ownership structure to the Facility or to the other facilities to which the Master Agreement applies. Any determination of whether any amendment or modification requested by an agency lender is commercially reasonable shall take into
account the dominance of agency lenders (including Fannie Mae and Freddie Mac) in the financing of senior housing communities, the terms customarily required by such agency lenders in connection with mortgage loans secured by senior housing
communities similar in nature and ownership and management structure to the Facility or to the other facilities to which the Master Agreement applies, the then current availability of mortgage financing for assets similar to the Facility, the then
current reputation and financial condition of SSLI and its Affiliates and the conditions of the financial and financing markets in general. Manager shall not be required to execute such documents that adversely alter the formula for, or amount of,
Manager’s compensation, unless Ventas SSL or another creditworthy Affiliate thereof agrees to compensate Manager for such change. If the Manager so requests, during the documentation process with the proposed Mortgagee, (i) Owner shall use
good faith efforts to provide Manager reasonable opportunities to discuss and negotiate any such requested documentation with the proposed Mortgagee to the extent Manager believes in good faith such documentation is not commercially reasonable, and
(ii) to the extent that Owner, in its good faith judgment, concurs that such documentation is not commercially reasonable, Owner shall use good faith, commercially reasonable efforts to assist Manager in seeking a commercially reasonable
outcome to such dispute; provided that such negotiations do not delay closing of the proposed financing and do not result in additional cost to Owner other than incremental legal fees, and provided further that Manager acknowledges
that Owner’s view of what constitutes a commercially reasonable outcome may differ from Manager’s, and Manager agrees that Owner (1) shall not be obligated to ensure any particular outcome, (2) shall have no obligation
to incur any cost in connection with or as a result of such negotiation (other than incremental legal fees), or to accept or agree to any changes in the economic terms of its proposed financing, and (3) shall have no liability in the event that
the proposed Mortgagee does not agree, in whole or in part, to Manager’s preferred outcome. 
 (e) Manager
acknowledges and agrees that Manager shall be required to meet the requirements of any Mortgagee regarding the Facility which are within the scope of Manager’s duties under this Agreement (provided that Manager has received written notice of
such requirements), and to the extent that any Mortgagee imposes restrictions on the operations of the Facility or obligations upon Owner which are greater than those set forth in this Agreement, the terms and conditions of the Facility Mortgage and
other loan documents with such Mortgagee evidencing or securing such financing (collectively, the “Loan Documents”) 

  
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shall control, and, upon written notice from Owner as to the requirements thereof (which written notice may be provided by delivering copies of such Loan Documents to Manager), Manager agrees to
comply with those obligations under the Loan Documents which are within the scope of Manager’s duties under this Agreement and to execute an amendment to this Agreement reflecting any such additional obligations or duties required by the Loan
Documents; provided, however, that (i) any such additional duties or obligations shall be subject to Manager’s reasonable ability to perform, (ii) nothing herein, other than as provided in this Section 10.3
or in Section 18.3, shall imply any obligation that Manager subordinate its interest in the Facility under this Agreement to any Facility Mortgage, (iii) no budgetary or other restriction which might be imposed by any Mortgagee
shall in any way impair Manager’s ability to maintain all appropriate licenses for the Facility nor expose the Manager to any potential liability for inadequate care, (iv) nothing in the Loan Documents shall impair, reduce or eliminate
(although it may delay) Manager’s right, if any, to recover the Refinancing Fee from the Owner (defined in Section 10.4 below) or the Asset Disposition Fee from the Owner (defined in Section 10.5 below) in the case of an
Owner Event of Default, even if such default is caused by Owner’s compliance with the Loan Documents, and (v) Manager shall be appropriately compensated by Owner to the extent that the Loan Documents require a higher level of service by
Manager than contemplated hereunder. Manager acknowledges receipt of the financing terms against the Facility as of the Amendment Date and that the obligations therein shall not give rise to any additional compensation as contemplated in this
Section 10.3 and Manager acknowledges compliance by Owner with the provisions of this Section 10.3 in respect thereof as of the Amendment Date. 

(f) Owner shall not exercise any rights it may have under any Facility Mortgage or the other documents and instruments
evidencing and securing such financing to unilaterally terminate this Agreement in the absence of any Manager Event of Default or other termination rights arising under this Agreement (including, without limitation, any Manager Event of Default
relating to the failure to comply with the requirements of this Section 10.3) or the Master Agreement or as requested or directed by the applicable lender. 
 10.4 Refinancing Fee. In the event Owner requests Manager or its Affiliates to arrange financing or replacement financing for the Facility, Manager shall be paid a fee (the “Refinancing
Fee”) equal to one percent (1%) of the gross loan amount upon the closing of any financing or refinancing of the Facility to compensate Manager for its efforts in arranging such financing or refinancing, plus reimbursement of any
expenses incurred to conduct due diligence in connection with the financing or refinancing (whether or not requested by Owner). 

10.5 Asset Disposition Fee. In the event Owner requests Manager to arrange a sale of the Facility, Manager shall be paid a fee
(the “Asset Disposition Fee”) upon the sale of the Facility equal to one percent (1%) of the gross sales price, plus reimbursement of any expenses incurred to conduct due diligence in connection with the sale (whether or not
requested by Owner). 
 10.6 Quiet Enjoyment. Owner covenants that, so long as Owner or its Affiliates have not
terminated this Agreement by reason of (i) a Manager Event of Default under this Agreement, or (ii) the exercise by Owner or its Affiliates of any right of Owner or its Affiliates to terminate this Agreement under any other Section of this
Agreement or the Master Agreement, 

  
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Manager shall quietly hold, occupy and enjoy the Facility throughout the Term hereof free from hindrance or ejection by Owner or other party claiming under, through or by right of Owner. Owner
agrees to pay and discharge any payments and charges and, at its expense, to prosecute all appropriate actions, judicial or otherwise, necessary to assure such free and quiet occupancy except those resulting from any act or failure to act on the
part of Manager. 
 10.7 Manager’s Obligations. Manager hereby agrees to comply with all of the provisions of this
Agreement applicable to it and to perform all obligations of Manager as otherwise set forth herein. 
 ARTICLE XI

 REPAIRS, MAINTENANCE AND REPLACEMENTS 
 11.1 Routine Repairs and Maintenance. Manager shall maintain the Facility in good repair and condition and in conformity with applicable Legal Requirements (or in conformity with Manager’s
Standards, if higher), and shall make or cause to be made such routine maintenance, repairs and minor alterations, the cost of which can be expensed consistent with Manager’s System and GAAP, as it, from time to time, deems necessary for such
purposes, in accordance with the Approved Budget. The cost of such maintenance, repairs and alterations shall be paid from Gross Revenues and treated as a Facility Expense. All repairs shall be made in a good, workmanlike manner, consistent with
Manager’s Standards, in accordance with all applicable Legal Requirements relating to such work. 
 11.2 Capital
Expenditures. 
 (a) Commencing with the Approved Budget for calendar year 2012, the Approved Budget shall
contain on a quarterly basis appropriate line items, in addition to the notional FF&E Reserve, to cover the cost of the following (“Capital Expenditures”): 

(1) Replacements, renewals and additions to FF&E as required to meet Manager’s Standards and Legal Requirements;
and 
 (2) All other capital projects and/or items not provided for in Section 11.1, including,
without limitation, (i) renovations, replacements and maintenance to the Facility which are included in the Approved Budget and which are normally capitalized consistent with Manager’s Standards and GAAP such as flooring in common areas
and full replacement of roofs and parking areas, and (ii) any other expenses necessary for alterations, improvements, renewals or replacements to the Facility building’s structure or exterior facade or to its mechanical, electrical,
heating, ventilating, air conditioning, plumbing, or vertical transportation systems which are classified as capital expenditures under GAAP. 
 (b) With respect to any Capital Expenditure not included in the Approved Budget, including any change in scope or substitution of $5,000.00 or greater, Manager will submit a written request for same to
Owner, detailing Manager’s Capital Expenditures for the year to date, together with reasonable information outlining the need to expend funds for additional Capital Expenditures not included in the Approved Budget. Manager shall not in any case
be required to advance its own funds for such expenditures. Owner will respond with its approval or disapproval within thirty (30) days after such submission by Manager. If Owner 

  
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does not respond to such request within thirty (30) days of its receipt of such request, consent shall be deemed denied. 

(c) Manager shall from time to time make such: (1) replacements and renewals to the Facility’s FF&E of the
nature described in Section 11.2(a)(1); and (2) replacements or renovations to the Facility building of the nature described in Section 11.2(a)(2), as it deems necessary, up to the amount set forth in the Approved
Budget. No expenditures shall be made in excess of said budgeted amounts without the written approval of Owner, except as provided in Section 11.2(e). Manager shall be authorized to take appropriate remedial action without receiving
Owner’s prior approval, to remedy or respond to any Emergency Requirements but Manager shall notify Owner promptly following such action including the amount spent and the nature of the emergency. Proceeds from the sale of FF&E no longer
necessary to the operation of the Facility shall be deposited in the Operating Account. Proceeds from the disposition of FF&E shall not be included in Gross Revenues. Subject to the Approved Budget, Manager is authorized to lease (rather than
purchase) shuttle vans, postal machines, photocopiers and other office equipment. Lease payments with respect to such leases shall be paid from Gross Revenues and will be a Facility Expense. It is understood that Manager shall not be required to
guarantee or otherwise stand behind lease obligations. 
 (d) For the budget for calendar year 2012 and each
subsequent year, Manager shall prepare an annual estimate on a quarterly basis (the “Capital Budget”) of the Capital Expenditures necessary for the Facility. Unless otherwise approved by Owner, for all projects and/or items
requiring an expenditure of $5,000.00 or greater, the Capital Budget shall provide on an aggregated line item basis (i) reasonable detail describing the nature and type of capital project or item and its location within the Facility in such
detail at least equal to the detail provided in the 2010 Approved Budget, and (ii) all related costs and expenditures associated with such capital project and/or item. Manager shall submit such Capital Budget to Owner for Owner’s approval
at the same time the Annual Operating Budget is submitted. Owner shall not unreasonably withhold its consent with respect to such proposed Capital Expenditures as are: (1) required, in Manager’s reasonable judgment, to keep the Facility in
a competitive, efficient and economical operating condition, (2) reasonably required to achieve material compliance with any applicable Legal Requirements or otherwise reasonably required for the continued safe operation of the Facility, or
(3) renovations or replacements of portions of the Facility with respect to which it is no longer reasonably prudent to perform only routine maintenance in order to keep the Facility in good condition and repair, consistent with Manager’s
Standards. In addition, for the budget for calendar year 2012 and each subsequent year, the Capital Budget shall include an estimate of any unused amounts allocated to the Capital Budget for the immediately preceding year. 

(e) In the event of the receipt by Manager of an order or notice from a Governmental Authority pertaining to a violation
or potential violation of any applicable Legal Requirement (any such order or notice, a “Violation Notice”), or information indicating a circumstance involving the continued safe operation of the Facility, Manager shall give Owner
notice thereof within five (5) Business Days thereafter or sooner if circumstances reasonably warrant. Manager shall be authorized to take reasonable and appropriate remedial action without receiving Owner’s prior consent and, as
reasonably necessary, to expend funds not provided for in the Approved Budget, as follows: (i) in an emergency threatening the Facility, its Residents, 

  
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invitees or employees, such action and/or expenditure as may be necessary to eliminate the circumstances giving rise to such emergency or (ii) with respect to any condition not resulting
from a breach of this Agreement by Manager if the continuation of such condition will subject Manager and/or Owner to regulatory, civil, or criminal liability, and Owner has either failed to remedy the situation or has failed to take appropriate
legal action to stay the effectiveness of any such law, ordinance, regulation or order, such action and/or expenditure as may be necessary to stay the implementation of any such law, ordinance, regulation or order. Manager shall, as soon as
reasonably practical under the circumstances, but in no event later than five (5) days after such actions are taken or expenditures made, notify Owner of any action that it may have taken and any costs it may have paid or incurred under this
Section 11.2(e), which notice shall include a description of the unforeseen or special circumstances giving rise to such action or expenditures, and shall cooperate with Owner in the pursuit of any such action and shall have the right to
participate therein. Owner shall reimburse Manager for any such costs incurred by Manager in connection with any such remedial action within ninety (90) days after Owner’s receipt of written notice from Manager of the amount of such costs.

 (f) For calendar year 2012 and each subsequent year, Manager shall provide, on a quarterly and year-to-date
basis, reasonably detailed quarterly reports of the actual Capital Expenditures undertaken for the current quarter against the applicable quarter in the Approved Budget and any other prior reporting with respect to Capital Expenditures from Manager,
without depreciation, based on invoices and with copies of the invoices provided, including but not limited to explanations of cost variances, material changes to Manager’s underlying assumptions, delays in project timing, and any other
information Owner may reasonably request. Additionally, such reporting shall include a reconciliation and reasonable detail of the Capital Expenditures incurred to date. For periods prior to the commencement of calendar year 2012, Manager shall
(1) provide copies of invoices for Capital Expenditures on a quarterly basis and otherwise upon request, together with the foregoing reports to the extent such reporting is practicable under Manager’s accounting systems in effect as of the
Amendment Date, (2) provide, on a quarterly basis, a report describing the status of ongoing Capital Expenditure projects substantially similar in form and substance to the report attached hereto as Exhibit H, and (3) use
commercially reasonable efforts to provide to Owner, from time to time upon Owner’s reasonable request, a report summarizing the status of ongoing Capital Expenditure projects on a line item basis for the Facility, it being understood that,
with respect to the reports described in this clause (3), Manager’s use of “commercially reasonable efforts” shall take into account Manager’s then-current capabilities to provide the applicable report. 

(g) Manager and Owner shall use commercially reasonable efforts to prevent any liens from being filed against the Facility
which arise from any maintenance, repairs, alterations, improvements, renewals or replacements in or to the Facility. Manager shall not file any lien against the Facility. For any lienable work or materials the cost of which exceeds $10,000.00,
individually, or in the aggregate as to any vendor or contractor, or as otherwise required under any applicable Loan Documents, Manager shall obtain appropriate sworn statements and lien waivers, and other relevant documents as a condition to
payment of Capital Expenditures. Manager and Owner shall cooperate fully in obtaining the release of any such liens, and the costs thereof, if the lien was not occasioned by the fault of either party, shall be treated the same as the cost of the
matter to which it relates. If the lien arises as a result of the fault of either party, then the party at fault shall bear the cost of obtaining the lien release. 

  
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 (h) As used in this Section 11.2, “Ordinary Course CapX
Project” means (i) any proposed Capital Expenditure the cost of which is estimated not to exceed $100,000.00 and (ii) any carpet installation or replacement, regardless of the estimated cost of such replacement. Manager shall be
responsible for soliciting bids and providing design services with respect to Capital Expenditures as reasonably appropriate for the scope of each particular project and otherwise in accordance with Manager’s Standards. Manager shall be
entitled to reasonable procurement and design fees for procurement and design services actually performed by Manager with respect to Capital Expenditures, not to exceed market rates, and if so requested by Owner from time to time, Manager shall
provide evidence reasonably satisfactory to Owner that any such fees charged by Manager do not exceed market rates. The Manager and Owner acknowledge and agree that, as of the Amendment Date, 12% is the market rate for procurement fees and the
market rates for design fees are on an inverse sliding scale based on the cost of the applicable work, with a maximum of 10%. For any Ordinary Course CapX Project, Manager shall also provide construction management services as reasonably appropriate
for the scope of each such particular project and otherwise in accordance with Manager’s Standards, and Manager shall not be entitled to any additional fee for such construction management services in connection with any Ordinary Course CapX
Project. Owner shall be responsible for hiring a project manager to provide construction management for any Capital Expenditure project which is not an Ordinary Course CapX Project. If Manager desires to act as construction manager for any proposed
Capital Expenditure project which is not an Ordinary Course CapX Project, Manager shall provide a written proposal to Owner specifying the nature of the construction management services to be provided and the fees Manager proposes to charge for such
construction management services. Owner may, but shall not be obligated to, engage Manager for such purpose, on the terms proposed by Manager or such other terms as the parties shall mutually agree. 

11.3 Owner to Provide Funds. Owner shall ensure that the Operating Account has sufficient funds or overdraft (or other) capacity
to meet all Facility Expenses, and shall also ensure that the Operating Account has sufficient funds or overdraft (or other) capacity to meet all Capital Expenditures in the approved Capital Budget or approved pursuant to Section 11.2(b)
as they are incurred or become due. This obligation shall continue throughout the Term without regard to the sufficiency of Gross Revenues, or the existence of any Manager Event of Default hereunder. It is anticipated that this obligation will be
met by Manager, on Owner’s behalf, paying Facility Expenses, from the Operating Account, then, if such funds are insufficient, from funds provided by Owner. Any Capital Expenditures in the Approved Budget or otherwise approved pursuant to
Section 11.2(b) shall be provided first from the Operating Account, then from funds provided by Owner. It is specifically agreed that Manager has no obligation hereunder to provide either funds or its credit for the benefit of Owner.
However, the parties acknowledge that residents, employees, contractors, suppliers and other Third Parties doing business with the Facility may rely upon the credit, good name, and reputation of Manager. Therefore, timely compliance by Owner with
its obligations under this Section 11.3 is material in every respect and time is of the essence. Although it has no such obligations hereunder, if Manager, in order to see to the orderly continuance of operations of the Facility (in the
absence of Gross Revenues or funds from Owner, after notice, for such purpose), should elect to advance funds to pay Facility Expenses or to provide necessary working capital, such advances will constitute unsecured loans to Owner, will be
immediately due and payable, and will bear interest 

  
 44 

 
at the rate set forth in Section 14.5 until paid. Manager may deduct any such amounts from any distributions due Owner. 

ARTICLE XII 

INSURANCE; DAMAGE; CONDEMNATION; FORCE MAJEURE 
 12.1 General Requirements. 
 (a) Manager, in Manager’s
name, shall negotiate with independent insurance companies of recognized responsibility a contract or contracts for, and keep in full force and effect, policies of insurance that are commercially available and of the type, extent, amount and cost of
coverage that is consistent with sound management of the Facility, insuring Owner, Manager and the Facility against the risks customarily insured against for such a facility, all in accordance with Manager’s Standards (the “Insurance
Program”); provided, however that Owner shall have the right to obtain insurance coverage for any one or more lines of insurance coverage identified on Exhibit D if Owner is able to obtain such coverage on terms that are more
economical than those obtained by Manager and if such coverage is at least equal to that proposed by Manager, as provided in Section 12.1(b). The cost of such insurance shall be included in the Approved Budget as a Facility Expense. As
of the Amendment Date, the minimum coverages required to be obtained and maintained under the Insurance Program shall include the requirements set forth on Exhibit D attached hereto. 

(b) Annually during the term of this Agreement, the Insurance Program shall be reviewed by Manager and Owner in
consultation with each other. Not less than one hundred fifty (150) days prior to the expiration of the then-existing Insurance Program, Manager shall submit a pro forma estimate of its proposed Insurance Program for the next year to Owner for
review, which proposal shall include coverage levels and cost allocations for all such levels of insurance coverage. The Owner shall then have thirty (30) calendar days to elect to either (1) accept Manager’s proposed Insurance
Program in its entirety or (2) obtain an Insurance Program (in its entirety or as to any one or more individual lines of insurance coverage under Manager’s Insurance Program) with levels of insurance coverage reasonably acceptable to
Manager and Owner and consistent with the minimum levels of coverage and limits set forth on Exhibit D. If Owner elects to obtain some, but not all required insurance lines, then Manager shall provide coverage for those lines (but not
portions of lines) of Manager’s Insurance Program not selected by Owner (it being understood that, for purposes hereof, any insurance lines that are only offered in tandem shall be considered a single insurance line). Further, the decision by
Owner to obtain independent insurance coverage for all or any one or more lines of insurance for the next Insurance Program year shall be irrevocable for the policy period of the respective insurance policies that comprise Manager’s Insurance
Program for that program year. Owner may re-enter Manager’s Insurance Program (or any applicable line thereof) at the beginning of a subsequent Insurance Program year by providing one hundred and twenty (120) days notice to Manager. The
amount of any insurance deductibles paid by Owner (or by Manager on Owner’s behalf out of Gross Revenues) shall be a Facility Expense. Neither Manager nor its Affiliates shall be required to pledge their credit in order to obtain any letters of
credit issued to the insurance carriers in connection with any insurance policies. 

  
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 (c) Notwithstanding the foregoing, Manager (or Owner as to any line of
insurance which Owner elects to provide under clause (2) in the previous paragraph) will use commercially reasonable efforts to maintain insurance coverage types and amounts as reasonably required by any third-party lender, the cost of which
shall be a Facility Expense, provided that such coverage types and amounts do not fall below those set forth on Exhibit D attached hereto, and further provided that in no event will Manager’s inability to obtain insurance coverages
required by a third-party lender be a default which entitles Owner to terminate this Agreement. The cost of such insurance (whether obtained by Manager or Owner) will be included in the Approved Budget as a Facility Expense. 

(d) Unless Manager provides prior written notice to Owner at least thirty (30) days prior to the expiration of any
policy of insurance or any pending non-renewal thereof, during the Insurance Program, Manager shall use its diligent good faith efforts to maintain in effect, without any gap in coverage, policies of insurance required by this
Section 12.1. As soon as practicable following the expiration of any policy of insurance required hereby, Manager shall provide Owner with a certificate or certificates evidencing new insurance as required under this
Section 12.1. Such insurance shall be cancelable or materially changed only upon not less than ninety (90) days prior written notice by the insurer to the named insured and Owner. 

(e) Exhibit D may be amended from time to time by Manager with Owner’s consent. If Owner does not respond to a
written notice requesting consent to such a change within thirty (30) days of their receipt of such request, consent shall be deemed granted. 
 (f) Manager may, at any time, if Manager, in Manager’s judgment, determines it necessary for the proper operation of the Facility, amend or cancel an insurance program in effect and obtain
replacement insurance consistent with the requirements of Exhibit D and this Section 12.1. 
 12.2
Blanket Policies. All insurance described in Section 12.1 may be obtained by Manager by endorsement or equivalent means under its blanket insurance policies, provided that such blanket policies fulfill the requirements specified
herein. 
 12.3 Risk Management. One of the responsibilities of Manager shall be to provide risk management consultation
and recommendations with respect to the Facility. 
 12.4 Damage and Repair. 

(a) If, during the Term, the Facility is damaged by a Minor Casualty, Manager shall, with all reasonable diligence,
proceed to process the claim with the applicable insurance carriers, including settling such claim, and to make the necessary arrangements with appropriate contractors and suppliers to repair and/or replace the damaged portion of the Facility.
Owner’s consent shall not be needed for Manager to perform any of the foregoing, all of which shall be performed in accordance with Manager’s reasonable judgment and Manager’s Standards; provided, however, that the
parties agree that the standard for such repair and/or replacement shall be to repair and/or replace the damaged portion of the Facility to levels of quality and quantity that are equal to those that existed with respect to such portion of the
Facility prior to the occurrence of the damage at issue. Owner agrees to sign promptly any documents which are 

  
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necessary to process and/or adjust the claim with the insurance carriers, as well as any contracts with such contractors and/or suppliers. If construction services are provided by Manager at the
request of Owner (which Owner shall not be required to do), Manager shall be entitled to receive a construction management fee equal to five percent (5%) of the total cost of all work undertaken pursuant to this Section 12.4,
provided that the same is payable from insurance proceeds covering the cost of such repairs and/or replacements. Notwithstanding the foregoing, Manager is authorized, without first obtaining Owner’s consent, to take whatever steps are needed to
repair a Minor Casualty which creates a threat to the health or well-being of the residents or potential for further damage to the Facility if not immediately corrected. 

(b) If, during the Term, the Facility suffers a Total Casualty, this Agreement shall be terminable at the option of either
party upon ninety (90) days’ written notice to the other party. Such notice must be sent within thirty (30) days after the date of the Total Casualty. 

(c) If, during the Term, the Facility is damaged by fire, casualty or other cause to a greater extent than a Minor
Casualty, but not to the extent of a Total Casualty, Owner shall, at its cost and expense and with all reasonable diligence, repair and/or replace the damaged portion of the Facility to the same condition as existed previously. Manager shall have
the right to discontinue operating the Facility to the extent it deems necessary to comply with applicable Legal Requirements or as necessary for the safe and orderly operation of the Facility. To the extent available, proceeds from the casualty
insurance described in Section 12.1 of this Agreement shall be applied to such repairs and/or replacements. If Owner fails to so promptly commence and complete the repairing and/or replacement of the Facility so that it shall be
substantially the same as it was prior to such damage or destruction, such failure shall be a default by Owner and shall, if not cured by Owner within the applicable notice and cure period referenced in Section 14.1(b), be an Owner Event
of Default. The parties agree that, if Owner is obligated to utilize such available insurance proceeds to repay any obligations pursuant to any Facility Mortgage, then Owner shall be entitled to an equitable extension of time (in which Owner has to
fulfill its obligations pursuant to the provisions of this Section 12.4(c)) that is sufficient to allow Owner to obtain the necessary funding to replace such spent insurance proceeds and to make the repairs and/or replacements required
hereunder. The parties further agree that Owner’s obligations to repair and/or replace pursuant to the provisions of this Section 12.4(c) shall be subject to Owner’s ability to obtain such entitlements and/or other approvals of
a Governmental Authority as may be necessary to undertake such repair and/or replacement; provided, however, that Owner shall undertake good faith efforts to obtain such entitlements and/or approvals. 

12.5 Condemnation. 
 (a) In the event all or substantially all of the Facility shall be taken in any eminent domain, condemnation, compulsory acquisition, or similar proceeding by any competent authority for any public or
quasi-public use or purpose, or in the event a portion of the Facility shall be so taken, but the result is that it is unreasonable to continue to operate the Facility in accordance with the standards required by this Agreement, this Agreement shall
terminate effective as of the date of such taking or similar proceeding. Owner and Manager shall each have the right to initiate such proceedings as they deem advisable to recover any damages to which they may be entitled and as their interests may
appear. 

  
 47 

 (b) In the event a portion of the Facility shall be taken by the events
described in Section 12.5(a), or the entire Facility is affected but on a temporary basis, and the result is not to make it unreasonable to continue to operate the Facility, this Agreement shall not terminate. However, so much of any
award for any such partial taking or condemnation as shall be necessary to render the Facility equivalent to its condition prior to such event shall be used by Owner for such purpose; and Manager shall have the right to discontinue operating the
Facility or portion of the Facility to the extent it deems necessary for the safe and orderly operation of the Facility. Any award in excess of the amount used in accordance with the prior sentence shall be the property of Owner. 

12.6 Material Adverse Orders Restricting Operations. If an order, judgment or directive by a court or administrative body is
issued in connection with any litigation involving Owner, which restricts or prevents Manager, in a material adverse manner, from operating the Facility in accordance with Manager’s Standards, Manager shall be entitled, at its option, to
terminate this Agreement upon sixty (60) days’ notice; provided, however, that Manager shall (if it so elects) deliver such notice of termination to Owner by no later than ninety (90) days after Manager receives notice
of the issuance of such order, judgment or directive (or, if such order, judgment or directive is appealed, within ninety (90) days after Manager receives notice of the final disposition of such appeal) and such notice of termination shall
cease to be effective if, prior to the effective date thereof, such order, judgment or directive ceases to have such material adverse effect on the Manager. 
 ARTICLE XIII 
 TERMINATION OF AGREEMENT 

13.1 Termination. 
  

	 	(a)	This Agreement shall automatically terminate at the end of the Term. 

  

	 	(b)	This Agreement may be terminated prior to the expiration of the Term by: 

  

	 	(1)	the mutual written consent of the Owner and the Manager; 

  

	 	(2)	Owner, pursuant to the provisions of Section 14.2; 

  

	 	(3)	Manager, pursuant to the provisions of Section 14.3; or 

  

	 	(4)	Owner or its Affiliates, pursuant to the terms of the Master Agreement. 

 13.2 Transition upon Termination. 
 Upon termination of this Agreement for
any reason, Manager agrees to cooperate in transferring operational control of the Facility to Owner or a successor manager. Without limiting the foregoing, upon termination of this Agreement the following provisions shall apply: 

  
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 (a) Manager shall deliver to Owner a final accounting, reflecting the
balance of income and expenses of the Facility as of the date of termination, as soon as reasonably possible, but not later than one hundred twenty (120) days after such termination. 

(b) Manager shall (i) cooperate, at Owner’s election, in either (1) terminating the signature authority of
Manager or employees of Manager or its Affiliates with respect to bank accounts for the Facility held in Owner’s name and substituting signatories designated by Owner or (2) closing bank accounts for the Facility held in Owner’s name
upon clearance of outstanding checks and other payables; provided that any portfolio operating accounts which are used for both the Facility and one or more other Facilities for which the applicable Management Agreements (as such term is defined in
the Master Agreement) are not being terminated shall either be kept open or Owner shall cooperate to establish new portfolio accounts for such other Facilities; and (ii) deliver to Owner any balance of monies of Owner or resident deposits, or
both, held by Manager with respect to the Facility; in each case as soon as reasonably possible, but not later than one hundred twenty (120) days after such termination. 

(c) Manager shall turn over to Owner all facility information of any kind reasonably necessary for Owner or a new manager
to continue to operate the Facility, including, but not limited to, information of any kind pertaining to residents of the Facility, sales, contracts, leases, resident agreements, tenant correspondence, files, receipts for deposits, unpaid bills and
other information which pertains in any way to the Facility, subject to compliance with Legal Requirements and in any case excluding Manager’s proprietary manuals, as soon as reasonably possible, but not later than one hundred twenty
(120) days after such termination. 
 (d) Intentionally Omitted. 

(e) Upon termination, Manager shall assign to Owner or Owner’s designee, and Owner or Owner’s designee shall
accept such assignment, all contracts and orders as may be in Manager’s name relating solely to the operation of the Facility (and not to any other Facilities) and as permitted by any such contract or order and shall use reasonable efforts to
obtain all consents necessary therefor in order to ensure the continued day-to-day management of the Facility in accordance with this Agreement. 
 (f) Manager shall transfer to Owner or Owner’s designee all of Owner’s books and records (or copies thereof to the extent that originals are not required or advisable to comply with Legal
Requirements) respecting the Facility in the custody or control of Manager, necessary to ensure the orderly continuance of the operation of the Facility, but such books and records shall thereafter be available to Manager as reasonably necessary at
all reasonable times, upon reasonable notice, for inspection, audit, examination and transcription for a period of seven (7) years, subject to extension with respect to particular documents as requested by Manager in advance if required to
comply with litigation or any investigation, audit or review by a Government Authority that is open and active as of the end of such seven (7) year period so long as such matter remains active, subject to any extension reasonably requested by
Manager with reasonable prior notice and as reasonably required to comply with litigation or any investigation, audit or review by a Governmental Authority. 

  
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 (g) Manager shall cooperate reasonably in all respects to [(i)] achieve a
transfer of any license and/or certificate (or to obtain a new license and/or certificate, if necessary) required in connection with the operation of the applicable Facility, [and (ii) enable Owner to purchase such tail insurance as may be
advisable and appropriate, in Owner’s discretion,] but[, in connection with (i) and (ii),] Manager shall not be required to incur any monetary expenditures in connection therewith (unless Owner agrees to reimburse Manager for the same).
Without limiting the foregoing, Manager shall, to the extent permitted by Legal Requirements, assign and transfer to Owner or Owner’s designee, Manager’s right, title and interest (if any) in and to all licenses, permits, and approvals (if
any) used by Manager in the operation of the Facility in any and all such cases as are necessary, desirable, or advisable such that the day-to-day operations may continue in a practical and legal manner, and shall use reasonable efforts to file all
necessary applications and obtain all consents necessary therefor; provided, however, Manager shall not be required to incur any monetary expenditures in connection therewith (unless Owner agrees to reimburse Manager for the same) and provided
further that if Manager has expended any of its own funds in the acquisition of any of such licenses or permits, Owner shall reimburse Manager therefor if it has not done so already. Additionally, so as to avoid any disruption or delay of any
services or amenities at the Facility, if licenses or permits held in Manager’s name cannot be transferred or cannot be transferred immediately to Owner or the successor manager, Manager agrees to enter into an interim management arrangement in
form and substance reasonably acceptable to Manager, which shall lawfully permit Owner or such successor manager to continue to operate the Facility or activities of the Facility under Manager’s license or permit until the earliest of
completion of the transfer, issuance of a replacement license or permit, or the one hundred eightieth (180th) day after the effective date of the termination. 

(h) Manager shall provide to Owner a copy of all computer data in non proprietary machine-readable format and the transfer
of any documents relating to the Facility (or copies of such documents if Manager is required by law to maintain the originals) and, if permitted under the applicable software license, provide Owner with a one-hundred twenty (120) day license
for continued use of any software containing such data and information, without fee (provided, however, Manager shall not be required to incur any monetary expenditures for such temporary license which it would not otherwise have incurred unrelated
to the Facility, unless Owner agrees to reimburse Manager for the same), and the right to copy such data and information, but not the software. 
 (i) Manager shall peaceably and quietly surrender and deliver up to Owner or Owner’s designee possession of the Facility in accordance with its obligations contained herein, with the specific intent
to effectuate a smooth transition of management of the Facility to Owner or a third party so as to minimize any potential disturbance of the residents. 
 (j) Manager shall, upon Owner’s delivery of notice to Manager, promptly remove, or in the absence of such notice, shall remove at such time as Manager reasonably determines, all signage on the
Facility bearing the Sunrise name or trademark and, in any event (i.e., regardless of whether Owner delivers notice requesting the removal of such signage), Manager shall remove all such signage no later than one-hundred twenty (120) days after
such expiration or termination. Manager shall use reasonable care during any such removal and shall, at Manager’s sole cost and expense, repair any damage to the Facility caused by such removal. 

  
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 (k) Manager shall not interfere with the facilitation, evaluation and
employment by Owner or Owner’s designee of such of the Facility’s employees as Owner or Owner’s designee may elect and, to the extent permitted by Legal Requirements and subject to employee consent, Manager shall afford Owner or
Owner’s designee, as applicable, access to all relevant personnel files, records, documents and information in Manager’s or its Affiliates’ possession, custody or control. 

(l) To the extent within Manager’s possession or control, Manager shall provide to Owner originals (or, if not
available, copies) of all plans and specifications for the Facility (or any element thereof) and any and all operations and maintenance manuals for the Facility (or any element thereof) and the FF&E (and any and all other equipment, systems,
fixtures, improvements and machinery located in or on or related to the operations of the Facility); provided, however, in no event shall Manager be obligated to provide any of Manager’s proprietary manuals to Owner. 

ARTICLE XIV 

DEFAULTS 

14.1 Events of Default. 
 (a) Each of the following shall constitute a “Manager Event of Default” after the expiration of the applicable notice and cure periods, if any, expressly provided herein, and with no
additional notice or cure rights, except as expressly provided herein (it being expressly understood that, in the event no notice and cure periods are expressly provided below, it shall be an automatic Manager Event of Default if Manager does not
strictly comply with and perform the applicable obligation(s) in accordance with the terms and conditions set forth for the performance of such obligation(s) in this Agreement or in such other agreement or document as may be referenced below):

 (i) The failure of Manager to comply with the provisions of Section 5.1 of this Agreement and such
failure continues for a period of five (5) Business Days after notice from Owner; 
 (ii) The failure of
Manager to comply in any material respect with any of the Cash Management Policies, which failure continues for a period of five (5) Business Days after notice from Owner; 

(iii) The failure of Manager to provide and deliver any record, budget, estimate or report listed in subparagraph (1),
(2) or (3) of this Section 14.1(a)(iii) within the applicable time period specified in this Agreement, which failure continues for a period of fifteen (15) Business Days after written notice from Owner, such records,
budgets, estimates and reports to include the following: 
  

	 	(1)	any and all material items or reports required to be delivered to Owner pursuant to Section 6.2 of this Agreement, other than the Financial Deliveries
Requirement and the Tax Deliveries Response Requirement; 

  
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	 	(2)	any and all budgets required to be delivered to Owner pursuant to ARTICLE VII or ARTICLE XI of this Agreement; and 

 

	 	(3)	any and all variance reports (as the same may be affected by the terms of ARTICLE VII) required to be delivered to Owner pursuant to Section 5.3 of this
Agreement; 

 (iv) The failure of Manager to comply materially with the provisions of
Section 6.3 of this Agreement, which failure continues for a period of fifteen (15) Business Days after written notice from Owner; 

(v) The failure of Manager to timely provide the monthly information and/or financial reporting
required to be delivered by the eighth (8th) Business
Day of each calendar month as reflected on Exhibit E attached hereto (any and all such information and/or reports, collectively, the “8th Business Day Reports”), on or prior to the 8th Business Day of such month; provided, however, that the delivery of
an 8th Business Day Report after the eighth (8th) Business Day of the applicable calendar month shall not
constitute a Manager Event of Default if (A) the applicable 8th Business Day Report is delivered on or prior to the fifteenth
(15th) day of the applicable calendar month, and
(B) Manager has failed to deliver an 8th Business Day
Report, including the 8th Business Day Report referred to
in clause (A), on or prior to the eighth
(8th) Business Day of a calendar month no more than
twice during the calendar year in which the applicable calendar month falls; and, provided, further, that, for purposes of this Section 14.1(a)(v), in the event (1) Manager fails to deliver more than one (1) 8th Business Day Report on or prior to the eighth (8th) Business Day of an applicable calendar month, and
(2) Manager delivers all such delinquent 8th Business
Day Reports on or prior to the fifteenth (15th) day
of such calendar month, then, for such calendar month, any and all such failures to timely deliver 8th Business Day Reports on or prior to the eighth (8th) Business Day of such calendar month shall be deemed to be one (1) failure, regardless of the number of 8th Business Day Reports not delivered on or prior to the 8th Business Day of such calendar month; 

(vi) The failure of Manager to timely provide the monthly information and/or financial reporting
required to be delivered by the fifteenth (15th) or
twentieth (20th) day (as applicable) of each calendar
month as reflected on Exhibit E attached hereto (any and all such information and/or reports, collectively, the “Other Day Reports”), on or prior to the last day for delivery of such information or reports as set forth on
Exhibit E; provided, however, that the delivery of an Other Day Report after the fifteenth (15th) or twentieth (20th) day (as applicable) of the applicable calendar month shall not constitute a Manager Event of Default if (A) Manager delivers the applicable Other Day Report within two (2) Business Days
after notice from Owner (which notice may be delivered via e-mail) advising Manager that the applicable Other Day Report has not been timely delivered, and (B) such failure does not cause the Aggregate Late Deliveries Limit to be exceeded; and,
provided, further, that, for purposes of the Aggregate Late Deliveries Limit, in the event (1) Manager fails to deliver more than one (1) Other Day Report on or prior to the fifteenth (15th) or twentieth (20th) day (as applicable) of an applicable calendar month, and
(2) Manager delivers all such delinquent Other Day Reports on or prior to the date that is two (2) Business Days after notice from Owner advising Manager that 

  
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the applicable Other Day Report(s) has (have) not been timely delivered, then, for such calendar month, any and all such failures to timely deliver Other Day Reports on or prior to the fifteenth
(15th) or twentieth (20th) day (as applicable) of such calendar month shall be deemed to
be one (1) failure counting against the Aggregate Late Deliveries Limit, regardless of the number of Other Day Reports not delivered on or prior to the fifteenth (15th) or twentieth (20th) day (as applicable) of such calendar month; 

(vii) The failure of Manager to timely provide the quarterly information and/or financial reporting required to be
delivered on a quarterly basis as reflected on Exhibit E attached hereto (any and all such information and/or reports, collectively, the “Quarterly Reports”), on or prior to the last day for delivery of such information or
reports as set forth on Exhibit E; provided, however, that the failure to timely deliver a Quarterly Report shall not constitute a Manager Event of Default if (A) Manager delivers the applicable Quarterly Report within three
(3) Business Days after notice from Owner (which notice may be delivered via e-mail) advising Manager that the applicable Quarterly Report has not been timely delivered, and (B) such failure does not cause the Aggregate Late Deliveries
Limit to be exceeded; and, provided, further, that, for purposes of the Aggregate Late Deliveries Limit, in the event (1) Manager fails to deliver more than one (1) Quarterly Report on or prior to the last day for delivery of such
information or reports as set forth on Exhibit E in an applicable quarter, and (2) Manager delivers all such delinquent Quarterly Reports on or prior to the date that is three (3) Business Days after notice from Owner advising
Manager that the applicable Quarterly Report(s) has (have) not been timely delivered, then, for such quarter, any and all such failures to timely deliver Quarterly Reports for such quarter on or prior to the last day for delivery of such information
or reports as set forth on Exhibit E shall be deemed to be one (1) failure counting against the Aggregate Late Deliveries Limit, regardless of the number of Quarterly Reports for such quarter not delivered on or prior to the last day for
delivery of such information or reports as set forth on Exhibit E; 
 (viii) The failure of Manager to
comply with the Financial Deliveries Response Requirement in accordance with Section 6.2(a) above; 

(ix) The failure of Manager to comply with the Tax Deliveries Response Requirement in accordance with
Section 6.2(b) above; 
 (x) The occurrence of any of the following: (A) with respect to any
Legal Requirement pertaining to resident care, resident safety or any of the permits and/or licenses that are necessary to operate the Facility as a senior housing community, the failure of Manager to timely provide notice to Owner as and when
required by the first sentence of Section 11.2(e), read without reference to “information indicating a circumstance involving the continued safe operation of the Facility,” or (B) with respect to any other requirement of
the first sentence of Section 11.2(e), read without reference to “information indicating a circumstance involving the continued safe operation of the Facility,” any material failure by Manager to timely provide notice to Owner
as and when required by such sentence; 
 (xi) The failure of Manager to materially comply with the Litigation
Deliveries Requirement in accordance with Section 15.1(b) below; 

  
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 (xii) The occurrence of any of the following: (A) the failure of
Manager to either (1) timely comply with Manager’s material obligations under the provisions of Section 10.3 (it being understood that the terms of this clause (1) are expressly subject to the terms of the following clause
(2)), or (2) in those instances in which Manager is required to deliver any information, reports, documentation or any other submission to Owner pursuant to Manager’s obligations under Section 10.3, the Manager’s failure
to do so on or prior to the date that is three (3) Business Days prior to the date on which Owner must deliver such information, reports, documentation or submission (as applicable) to Owner’s lender and the Owner has provided reasonable
notice to Manager of such Owner obligation to its lender that permits Manager to comply with such three (3) Business Day advance delivery obligation to Owner, or (B) in the event the “Manager” (as such term is defined in the
applicable Related Management Agreement) under the Related Management Agreement for any of the other Facilities that secure the mortgage loans to which the obligations in Section 10.3 pertain commits either of the failures described in
the preceding clause (A) under the applicable Related Management Agreement, it shall constitute a Manager Event of Default under this Agreement; 
 (xiii) The failure of Manager at any time to maintain the insurance required to be maintained pursuant to ARTICLE XII if such insurance is placed by Manager; provided, however, that the failure to
maintain required insurance shall not be a Manager Event of Default if the required insurance is not commercially available at reasonable rates and insurance coverage has been obtained which is as close to the required coverage as is reasonably
available; and, provided further, that any immaterial variances in the scope of the required coverage shall not constitute a Manager Event of Default; 
 (xiv) The occurrence of (A) the receipt by Manager or Owner of written notice of any pending or threatened action by a Governmental Authority (or other regulatory body) to cancel, revoke or suspend
any material license, permit or approval relating to the Facility (any such material license, permit or approval, a “Material License”) so long as the underlying facts or circumstances that caused such notice to be delivered, or
such action to be commenced or threatened, are not the result of any failure of the Owner to timely provide any funds required of Owner under this Agreement (in which event the terms of this Section 14.1(a)(xiv) shall not apply), and
(B) the failure of Manager (1) to commence to cure the underlying circumstances that resulted in receipt of such notice (including by diligently pursuing a challenge or appeal of any such cancellation, revocation or suspension of such
Material License) within ten (10) days after the receipt of such notice, or (2) to thereafter continuously exercise reasonable diligence to complete such cure, or (3) to complete such cure on or prior to the deadline imposed by the
applicable Governmental Authority, as the same may be extended with the consent of the applicable Governmental Authority or any appeal being pursued in accordance with clause (B)(1) above; 

(xv) The occurrence of any cancellation, revocation or suspension of any Material License (any such cancellation,
revocation or suspension, a “Material Licensure Event”) so long as the underlying facts or circumstances that caused such cancellation, revocation or suspension are not the result of any failure of the Owner to timely provide any
funds required of Owner under this Agreement (in which event the terms of this Section 14.1(a)(xv) shall not apply); provided, however, that it is understood that the Material Licensure Event shall not constitute a Manager Event of
Default until it becomes final and non-appealable, 

  
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provided, however, that (1) Manager has a legal right to appeal such Material Licensure Event, (2) Manager timely appeals the Material Licensure Event, (3) while Manager is
contesting such Material Licensure Event the Facility must be continuously permitted to operate in the manner in which it was operating prior to such event without any conditions or restrictions that have a material adverse impact on the Facility
(other than admissions bans which are addressed in Section 14.1(a)(xvi) below), (4) Manager is diligently and continuously pursuing the reinstatement of the Material License, and (5) no such cure shall be available if
(x) any other of the Facilities located in the State [Province] in which the Facility is located has had a Material Licensure Event that became final and non-appealable or (y) there have been more than four (4) prior Material
Licensure Events that became final and non-appealable in the aggregate for all Facilities (for purposes of this Section 14.1(a)(xv), the term “Facilities” shall include any facility that is, or at any time was, a
“Facility” (as defined in the Master Agreement) at which a Material Licensure Event that became final and non-appealable has occurred even if such facility was subsequently conveyed or the Related Management Agreement for such facility
terminated); 
 (xvi) The occurrence of any full or partial ban by a Governmental Authority (or other regulatory
agency) on new admissions of any residents which, prior to such ban, were permitted at the Facility so long as the underlying facts or circumstances that caused such ban are not the result of any failure of the Owner to perform its obligations under
this Agreement (in which event the terms of this Section 14.1(a)(xvi) shall not apply); provided, however, if Manager is diligently and continuously attempting to cause such ban to be lifted and successfully causes such ban to be lifted
within ninety (90) days after the initiation of such ban, then such ban shall not constitute a Manager Event of Default unless either (a) more than two (2) admissions bans then exist at other Facilities or (b) more than ten
(10) admissions bans (past or current) in the aggregate have been imposed on the Facilities (for purposes of this Section 14.1(a)(xvi), the term “Facilities” shall include any facility that is, or at any time was, a
“Facility” (as defined in the Master Agreement) at which an admissions ban has occurred even if such facility was subsequently conveyed or the Related Management Agreement for such facility was subsequently terminated); 

(xvii) The failure of Manager to comply on or after the Amendment Date with the terms, provisions and/or obligations
contained in the REIT Compliance Requirements, or prior to the Amendment Date, with the terms, provisions and/or obligations contained in Paragraph 6 of the January 14, 2007 Letter Agreement; provided, however, in the event (A) an
applicable failure does not, in the sole, but good faith, opinion of Owner, jeopardize or threaten the qualification or status or legal compliance with any Legal Requirements relating to operating or qualifying as a real estate investment trust for
United States federal tax purposes, of any Ventas Party and (B) Owner has actual knowledge of such failure, then such failure shall not constitute a Manager Event of Default if Manager cures such failure prior to the first to occur of
(1) the date that is five (5) Business Days after Owner notifies Manager in writing of such failure and (2) the date upon which such failure jeopardizes or threatens the qualification or status or legal compliance with any Legal
Requirements relating to operating or qualifying as a real estate investment trust for United States federal tax purposes of any Ventas Party, as determined by Owner, in Owner’s sole, but good faith, opinion (for purposes of this
Section 14.1(a)(xvii), Owner shall be deemed to have “actual knowledge” of an applicable failure when any of Debra A. Cafaro, T. Richard Riney or Brian Wood (or their successors as, respectively,

  
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the Chief Executive Officer, General Counsel or Senior Vice President of Tax of Ventas, Inc.) has actual (as opposed to deemed, imputed or constructive) knowledge of such failure); 

(xviii) The failure of Manager to comply with the terms, provisions and/or obligations contained in the Letter Agreements
(other than those set forth in Paragraph 6 of the January 14, 2007 Letter Agreement) for a period of ten (10) Business Days after written notice from Owner to Manager; provided, however, that, in accordance with
Section 18.17(b) below and the terms of the Master Agreement, Paragraph 10 of the January 14, 2007 Letter Agreement and Sections 6, 7 and 9 of the 2008 Letter Agreement are superseded by this Agreement and the Master Agreement as of
the Amendment Date; 
 (xix) At the election of Owner, the occurrence of any of the following: (a) the
commencement of a proceeding by or against Manager under any applicable bankruptcy, reorganization, liquidation, insolvency, creditors’ rights or other similar law now or hereafter in effect or a proceeding in which a receiver, liquidator,
trustee or other similar official is sought to be, or is, appointed for Manager (and in the event that any such proceeding is not initiated by Manager, which proceeding results in the final adjudication of Manager as bankrupt or insolvent or remains
undismissed for sixty (60) days, or within sixty (60) days after the appointment of such receiver, liquidator, trustee or similar official, such appointment is not vacated), or (b) any vote, action or consent by Manager to become a
party to any of the foregoing proceedings set forth in clause (a) (including the failure to oppose any such proceeding), or (c) the execution of any written agreement by Manager to become a party to any of the foregoing proceedings set
forth in clause (a) (any such event, a “Sunrise Insolvency Event”); 
 (xx) The occurrence
of a Material Adverse Event; 
 (xxi) The occurrence of an Event of Default (as defined in the Master Agreement);
or, 
 (xxii) Unless specifically addressed in subsections (i) through (xxi) of this
Section 14.1(a) (in which event the specific default provisions including any applicable notice and cure periods, set forth above shall control), the occurrence of any of the following: (a) Manager shall fail to keep, observe or
perform any material covenant, agreement, term or provision of this Agreement to be kept, observed or performed by Manager (such failures to include misappropriation of funds by the Manager or any Affiliate, director, officer, shareholder, employee
or agent thereof), (b) any fraudulent act by Manager or any Affiliate thereof and their respective employees affecting the Owner or the Facility shall occur, or (c) any gross negligence or willful misconduct or willful omission of Manager
with respect to its duties and obligations under this Agreement which has, or could reasonably be expected to have, a material adverse effect on the Facility shall occur, and such default described in clause (a), (b) or (c) above shall
continue (1) for a period of ten (10) Business Days after Manager receives notice from Owner specifying the default in the case of monetary defaults, fraud or willful misconduct or willful omission, (2) for a period of thirty
(30) days after Manager first becomes aware of any such misappropriation or gross negligence, or (3) for a period of thirty (30) days after Manager receives notice from Owner in the case of all other defaults; provided,
however, that if any such non-monetary default referenced in this clause (3) cannot be cured within such thirty (30) day period, then Manager shall be entitled to such additional time as shall be reasonable under the

  
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circumstances, provided Manager is capable of curing same, has proceeded to commence cure of such default within said period, and thereafter diligently prosecutes the cure to completion (it being
understood that Manager shall provide Owner with prompt notice of any misappropriation of funds). 
 (b) Each of
the following shall constitute an “Owner Event of Default” after the expiration of the applicable notice and cure periods, if any, expressly provided herein, and with no additional notice or cure rights, except as expressly provided
herein (it being expressly understood that, in the event no notice and cure periods are expressly provided below, it shall be an automatic Owner Event of Default if Owner does not strictly comply with and perform the applicable obligation(s) in
accordance with the terms and conditions set forth for the performance of such obligation(s) in this Agreement or in such other agreement or document as may be referenced below): 

(i) The failure by Owner to keep, observe or perform any material covenant, agreement, term or provision of this Agreement
to be kept, observed or performed by Owner (including, without limitation, Owner’s obligation to ensure that the Operating Account has sufficient funds or overdraft (or other) capacity to meet all Facility Expenses and Owner’s obligation
to ensure that the Operating Account has sufficient funds or overdraft (or other) capacity to meet all Capital Expenditures in the Approved Budget or approved pursuant to Section 11.2(b) as they are incurred or become due), to the extent
such default continues (1) for a period of ten (10) Business Days after written notice thereof by Manager to Owner in the case of monetary defaults; or (2) for a period of thirty (30) days after written notice thereof by Manager
to Owner in the case of non-monetary defaults; provided, however, if such default cannot be cured within such thirty (30) day period, then Owner shall be entitled to such additional time as shall be reasonable in the
circumstances, provided that Owner is capable of curing same, has proceeded to commence cure of such default within said period, and thereafter diligently prosecutes the cure to completion; 

(ii) The occurrence of any of the following: (1) Owner files a voluntary petition in bankruptcy or insolvency or a
petition for reorganization under any bankruptcy law, or the admission of Owner that it is unable to pay its debts as they become due; or (2) Owner consents to an involuntary petition in bankruptcy or fails to vacate, within ninety
(90) days from the date of entry thereof, any order approving an involuntary petition by such party; or (3) any court of competent jurisdiction enters an order, judgment or decree adjudicating Owner as bankrupt or insolvent or approving a
petition seeking reorganization or appointing a receiver, trustee or liquidator of a substantial part of Owner’s assets, and such order, judgment or decree continues unstayed and in effect for an aggregate of sixty (60) days (whether or
not consecutive); 
 (iii) The failure of Owner to maintain the insurance required to be maintained by Owner
pursuant to the provisions of ARTICLE XII, unless Owner cures such default within ten (10) Business Days after receipt of written notice from Manager demanding such cure, provided, however, that the failure to maintain required
insurance shall not be a default if the required insurance is not commercially available at reasonable rates and insurance coverage has been obtained which is as close to the required coverage as is reasonably available; or 

  
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 (iv) The failure of Owner to comply with the terms, provisions and/or
obligations contained in the Letter Agreements (other than those set forth in Paragraph 6 of the January 14, 2007 Letter Agreement) as they relate to this Facility and such failure continues for a period of ten (10) Business Days after
written notice from Manager to Owner; provided, however, that, in accordance with Section 18.17(b) below and the terms of the Master Agreement, Paragraph 10 of the January 14, 2007 Letter Agreement and Sections 6, 7 and 9 of the
2008 Letter Agreement are superseded by this Agreement and the Master Agreement as of the Amendment Date. 
 14.2 Remedies of
Owner. Subject to Section 18.5 of the Master Agreement, upon the occurrence of a Manager Event of Default as specified in Section 14.1(a) of this Agreement and expiration of any applicable cure period (if any) provided by this
Agreement, Owner shall be entitled to exercise its rights at law or in equity, including the right to terminate this Agreement and retain the Facility, or dispose of all or part of the Facility to a Third Party or compel specific performance of
Manager’s obligations hereunder. Notwithstanding the foregoing, however, if the right of Ventas SSL to terminate any Management Agreement (as defined in the Master Agreement) on account of an Event of Default (as defined in the Master
Agreement) under Section 15.1(a) of the Master Agreement is suspended pursuant to the terms of Section 15.1(a) of the Master Agreement (such Master Agreement Event of Default, the “Subject Event of Default” and such
suspension of Ventas SSL’s termination right, the “Suspension”), then, for so long as the Suspension remains in effect, Owner shall have no right to terminate this Agreement on account of a Manager Event of Default arising
solely due to the existence of the Subject Event of Default (a “Cross Default”). The immediately preceding sentence shall not limit (a) any rights or remedies of Owner with respect to any Manager Event of Default other than a
Cross Default, (b) any rights or remedies of Owner with respect to a Cross Default other than termination, or (c) any rights or remedies of Owner with respect to a Cross Default after the Suspension has ceased to be effective. 

14.3 Remedies of Manager. Upon the occurrence of an Owner Event of Default as specified in Section 14.1(b) of this
Agreement and the expiration of any applicable cure period (if any) provided by this Agreement, Manager shall be entitled to exercise its rights at law or in equity, including the right to terminate this Agreement or compel specific performance of
Owner’s obligations hereunder. 
 14.4 No Waiver of Default. The failure of Owner or Manager to seek remedy for any
violation of, or to insist upon the strict performance of, any term or condition of this Agreement shall not prevent a subsequent act by Owner or Manager which would have originally constituted a violation of this Agreement by Owner or Manager, from
having all the force and effect of an original violation. Owner or Manager may waive any breach or threatened breach by Owner or Manager of any term or condition herein contained. The failure by Owner or Manager to insist upon the strict performance
of any one of the terms or conditions of this Agreement or to exercise any right, remedy or election herein contained or permitted by law shall not constitute or be construed as a waiver or relinquishment for the future of such term, condition,
right, remedy or election, but the same shall continue and remain in full force and effect. All rights and remedies that Owner or Manager may have at law, in equity or otherwise for any breach of any term or condition of this Agreement shall be
distinct, separate and cumulative rights and 

  
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remedies and no one of them, whether or not exercised by Owner or Manager, shall be deemed to be in exclusion of any other right or remedy of Owner or Manager. 

14.5 Interest. Upon the failure of either party to make any payment required to be made in accordance with the terms of this
Agreement as of the due date which is specified in this Agreement, and the continuance of such failure for five (5) Business Days after notice thereof, the amount owed to the non-defaulting party shall accrue interest at an annual rate of ten
percent (10%), from and after the date on which such payment was originally due to the non-defaulting party until such payment is made. 
 14.6 Manager’s Right to Specific Performance for Owner’s Wrongful Termination. Owner hereby acknowledges that (a) Manager has an interest in this Agreement beyond the fees Manager
will earn pursuant to the provisions of this Agreement, (b) the termination of this Agreement by Owner when Owner is not entitled to terminate this Agreement pursuant to the provisions of this Agreement will be injurious to Manager’s
business conducted beyond Owner’s Facility, and will damage Manager’s Proprietary Marks and goodwill, (c) Manager’s Proprietary Marks are unique, Manager’s exclusive rights of possession under this Agreement are unique, the
Facility is unique and Manager is entitled to an exclusive license to operate Manager’s business at the Facility and to promote Manager’s Proprietary Marks at the Facility, which license is irrevocable except pursuant to the express
provisions of this Agreement, (d) it would be impossible to calculate the damages that Manager would sustain if Owner terminated this Agreement when Owner is not entitled to terminate this Agreement pursuant to the provisions of this Agreement,
and (e) the remedy of specific performance of Owner’s obligations under this Agreement is fair, equitable and practicable. Accordingly, Owner agrees that for as long as Manager is an Affiliate of SSLI (i) Owner shall not exercise any
legal power that it may have to breach this Agreement by terminating, or purporting to terminate, this Agreement when Owner has no right to terminate this Agreement pursuant to the provisions of this Agreement, and Owner hereby surrenders and
releases any such legal power, and (ii) Owner consents to the issuance by a court of competent jurisdiction of injunctive relief prohibiting Owner from terminating, or purporting to terminate, this Agreement or from evicting Manager from the
Facility when Owner has no right to terminate this Agreement and Owner consents to the grant by a court of competent jurisdiction of specific performance of the obligations of Owner under this Agreement. 

14.7 Owner’s Right to Specific Performance for Manager’s Wrongful Termination. Manager hereby acknowledges that
(a) Owner has an interest in this Agreement beyond the financial interests reflected therein, (b) the termination of this Agreement by Manager when Manager is not entitled to terminate this Agreement pursuant to the provisions of this
Agreement will be injurious to Owner’s business conducted beyond Owner’s Facility, and will damage Owner’s goodwill, (c) the Facility is unique, (d) it would be impossible to calculate the damages that Owner would sustain if
Manager terminated this Agreement when Manager is not entitled to terminate this Agreement pursuant to the provisions of this Agreement, and (e) the remedy of specific performance of Manager’s obligations under this Agreement is fair,
equitable and practicable. Accordingly, Manager agrees that (i) Manager shall not exercise any legal power that it may have to breach this Agreement by terminating, or purporting to terminate, this Agreement when Manager has no right to
terminate this Agreement pursuant to the provisions of this Agreement, and Manager hereby surrenders and releases any such legal power, and 

  
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(ii) Manager consents to the issuance by a court of competent jurisdiction of injunctive relief prohibiting Manager from terminating, or purporting to terminate, this Agreement when Manager
has no right to terminate this Agreement and Manager consents to the grant by a court of competent jurisdiction of specific performance of the obligations of Manager under this Agreement. 

ARTICLE XV 

LEGAL ACTIONS AND INDEMNITY 
 15.1 Legal Actions. 
 (a) Manager shall institute or defend,
in the name of Owner, (with Owner’s sole and unfettered approval to either institute, defend or settle in the case of claims not covered under the insurance program required by this Agreement) any legal action affecting the Facility and take
any actions, in the name of Owner, necessary to protest or litigate to a final decision in any appropriate court or forum any violation, order, rule, or regulation affecting the Facility. Manager shall give prompt notice to Owner of any such matter
and keep Owner reasonably well informed in respect thereof as more particularly described in Section 15.1(b). Owner shall assist and cooperate with Manager in the defense or prosecution of any such action. All actions arising out of the
operation of the Facility and any and all legal actions or proceedings to collect charges, Third Party payments, rents, or other incomes for Manager, Owner or the Facility, or to lawfully evict or dispossess residents or other Persons in possession
thereunder, or to lawfully cancel, modify, or terminate any lease, license, or concession agreement in the event of breach or default thereof, or to defend any action brought against Owner, the Facility or Manager in connection with the Facility,
shall be paid out of Gross Revenues and be treated as Facility Expenses. 
 (b) Manager shall
deliver to Owner (the “Litigation Deliveries Requirement”): (i) not later than the tenth
(10th) day of each month, a written summary, in form
reasonably satisfactory to Owner, of all litigation and regulatory proceedings with respect to or involving the Facility or its operation (a “Litigation Matter”); (ii) written notice of each new Litigation Matter not later than
five (5) Business Days after receipt by Manager of service of process or other written notice of such Litigation Matter; and (iii) written notice of any material filing or occurrence with respect to any active Litigation Matter not later
than five (5) Business Days after the earlier of receipt of notice thereof by Manager or the date on which Manager becomes aware of such material filing or occurrence. Owner shall provide Manager notice of any Litigation Matter to which Manager
is not a party not later than five (5) Business Days after receipt of notice thereof by Owner from a party other than Manager. 
 15.2 Indemnity. Except as set forth in the next paragraph and subject to the last sentence of this paragraph, Owner will defend, indemnify, and hold Manager, and any of its Affiliates, and their
respective directors, officers, shareholders, employees and agents (collectively, the “Manager Indemnified Parties”) harmless, from and against any and [FOR CANADIAN FACILITIES: all Employee Claims and] all claims, expenses
(including reasonable attorneys’ fees), losses, costs, suits, actions, proceedings, demands, or liabilities (collectively, “Losses”) that are asserted against, or sustained or incurred by them as a result of, or in connection
with, the performance of Manager’s duties under this Agreement or otherwise 

  
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while acting within the scope of, and authority under, this Agreement or by virtue of Manager being appointed as manager of the Facility. 

Manager will defend, indemnify and hold Owner, and any of its Affiliates, and their respective directors, officers, shareholders,
employees and agents, harmless from and against any and all claims, losses, expenses (including reasonable attorneys’ fees), costs, suits, actions, proceedings, demands or liabilities that are asserted against, or sustained or incurred by them
as a result of, or in connection with, Manager’s gross negligence, fraud, or willful misconduct in the performance of Manager’s duties under this Agreement. 
 Recovery upon an indemnity contained in this Agreement shall be reduced dollar-for-dollar by any applicable insurance collected by the indemnified party with respect to the claims covered by such
indemnity. The scope of the foregoing indemnities includes any and all costs and expenses properly incurred in connection with any proceedings to defend any indemnified claim, or to enforce the indemnity, or both. 

ARTICLE XVI 

REGULATORY AND CONTRACTUAL REQUIREMENTS 
 16.1 Regulatory and Contractual Requirements. Manager shall use commercially reasonable efforts to cause all things to be done in and about the Facility that are reasonably necessary to comply with
the requirements of any applicable Legal Requirement or order of any Governmental Authority or quasi-governmental regulatory body or agency, or board of fire underwriters respecting the use of the Facility or the construction, maintenance, or
operation thereof. Manager shall use diligent and good faith efforts to obtain and maintain all federal, State [Province] and county permits and licenses needed for use, operation and management of [an assisted living facility] in the
State [Province]. Owner agrees upon request by Manager to sign promptly and without charge applications for licenses, permits or other instruments necessary for use, operation and management of the Facility in accordance with Legal
Requirements and to provide such information and perform such acts relative to the ownership of the Facility as are required by law, regulation or practice of a Governmental Authority in order for Manager to obtain and/or maintain any license,
permit, instrument, certificate, certification or approval with respect to the use, operation and management of the Facility. Manager shall keep its corporate organization in good standing in the State [Province] and shall maintain all
corporate permits and licenses required by the State [Province]. 
 The parties understand and agree that certain
deficiencies or situations of non-compliance with various Legal Requirements (such as building codes, Occupational Safety and Health Act, Americans with Disabilities Act, health care regulations and the like) may occur from time to time in the
normal course of business operations. Such occurrences will not constitute a breach or Manager Event of Default hereunder except as provided in Section 14.1(a)(x), 14.1(a)(xiv), 14.1(a)(xv) or 14.1(a)(xvi), provided that, (i) they
are not materially beyond the general experience of similar facility operations located in the State [Province] in terms of scope, seriousness, or frequency, and (ii) Manager takes all reasonable actions in a timely manner to cure such
deficiencies or situations of non-compliance, and (iii) they have not had, and could not reasonably be expected to have, a material adverse impact on the Facility (“Non-Default Violations”). The costs of curing such Non-Default
Violations shall constitute Facility Expenses 

  
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unless incurred by reason of Manager’s willful failure, gross negligence or default hereunder, in which case such costs shall be paid by the Manager out of its own funds. Anything in this
Agreement to the contrary notwithstanding, Manager shall be solely responsible for any fines imposed by any regulatory agency with jurisdiction over the Facility, and costs and expenses of any contest and appeal, unless such fine, costs, or expenses
arise on account of a breach by Owner of its obligations under this Agreement. 
 16.2 Equal Employment Opportunity.
Without limitation of any provision set forth herein, Manager expressly agrees to abide by any and all applicable federal and/or State [Province] equal employment opportunity statutes, rules and regulations, [including Title II of the
Civil Rights Act of 1964, the Equal Pay Act of 1963, the National Labor Relations Act, the Fair Labor Standards Act, the Rehabilitation Act of 1983, and the Occupational Safety and Health Act of 1970,] all as may be from time to time modified or
amended. 
 16.3 Equal Housing Opportunity. Without limitation of any provision set forth herein, Owner and Manager
expressly agree to abide by any and all applicable federal and/or State [Province] equal housing opportunity statutes, rules and regulations, all as may be from time to time modified or amended. 

ARTICLE XVII 
 PROPRIETARY MARKS; INTELLECTUAL PROPERTY 
 17.1 Proprietary Marks.
During the Term of this Agreement, the Facility may be known as a “Sunrise” Facility, with such additional identification as may be necessary and agreed to by Owner and Manager to provide local identification. If the name of the
Manager’s System is changed, Manager shall have the right (with the Owner’s written consent, which shall not be unreasonably withheld) to change the name of the Facility to conform thereto. Any incremental costs associated with
implementing such name change shall be borne by Manager and will not be a Facility Expense. 
 17.2 Ownership of Proprietary
Marks. The Proprietary Marks shall in all events remain the exclusive property of Manager, and nothing contained herein shall confer on Owner the right to use the Proprietary Marks, except as specifically contemplated in this Agreement or the
Master Agreement. Upon termination of this Agreement, any use of or right to use the Proprietary Marks by Owner shall cease forthwith and subject to Section 13.2(j) Manager shall promptly remove from the Facility any signs or similar
items that contain the Proprietary Marks. The right to use such Proprietary Marks belongs exclusively to Manager, and the use thereof inures to the benefit of Manager whether or not the same are registered and regardless of the source of the same.

 17.3 Intellectual Property. All Intellectual Property shall at all times be proprietary to Manager or its Affiliates,
and shall be the exclusive property of Manager or its Affiliates. During the Term of this Agreement, Manager shall be entitled to take all reasonable steps to ensure that the Intellectual Property remains confidential. Upon termination, Manager
shall remove all Intellectual Property from the Facility, without compensation to Owner. Notwithstanding the foregoing, upon termination of this Agreement, Owner shall have the right 

  
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to use any inventories and Household Replacement items marked with the Proprietary Marks used in connection with the Facility until they are consumed. 

17.4 Trademark License. Manager hereby grants to Owner a non-exclusive right and license (“Trademark License”) to
use “Sunrise” solely as part of the name of the Facility. Owner shall not be permitted to use “Sunrise” in connection with the identification or operation of any other business or property, or at any other location, except as may
otherwise be provided in other agreements between the parties. Owner acknowledges and agrees that Manager (or one of its Affiliates) is the owner of all right, title, and interest in and to “Sunrise” and the goodwill associated with and
symbolized by that mark. Owner’s use of “Sunrise” and derivatives pursuant to this Trademark License shall not give Owner any ownership, apart from this Trademark License, to “Sunrise,” and all goodwill arising from
Owner’s use of “Sunrise” shall inure solely to Manager’s benefit. This Trademark License shall immediately terminate upon termination or expiration of this Agreement. 

17.5 Breach of Covenant. Manager and/or its Affiliates shall be entitled, in case of any breach of the covenants of this ARTICLE
XVII by Owner or others claiming through it, to injunctive relief and to any other right or remedy available at law. This ARTICLE XVII shall survive termination. 
 ARTICLE XVIII 
 MISCELLANEOUS PROVISIONS 

18.1 Additional Assurances. The provisions of this Agreement shall be self-operative and shall not require further agreement by
the parties except as may be herein specifically provided to the contrary; provided, however, that at the request of either party, the party requested shall execute such additional instruments and take such additional acts as the
requesting party may deem reasonably necessary to effectuate this Agreement. 
 18.2 Estoppel Certificates. Each party to
this Agreement shall at any time and from time to time, upon not less than ten (10) days prior notice from the other party, execute, acknowledge and deliver to such other party, or to any Third Party specified by such other party, a statement
in writing: (i) certifying that this Agreement is unmodified and in full force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications); (ii) stating whether or
not to the best knowledge of the certifying party: (x) there is a continuing Manager Event of Default (if Owner is the certifying party) or Owner Event of Default (if Manager is the certifying party) in the performance or observation of any
covenant, agreement or condition contained in this Agreement; or (y) there shall have occurred any event which, with the giving of notice or the passage of time or both, would become a Manager Event of Default or Owner Event of Default, as
applicable, and, if so, specifying such event(s) or occurrence of which the certifying party may have knowledge; and (iii) stating such other information as the non-certifying party may reasonably request. Such statement shall be binding upon
the certifying party and may be relied upon by the non-certifying party and/or such Third Party specified by the non-certifying party as aforesaid. The obligations set forth in this Section 18.2 shall survive termination (that is, each
party shall, on request, within the time period described above, execute and deliver to the non-certifying party and to any such Third Party a statement certifying that this Agreement has been terminated). 

  
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 18.3 Subordination, Nondisturbance and Attornment Agreements. This Agreement and any
extensions, renewals, replacements or modifications thereto, and all rights and interests of Manager in the Facility, shall be subject and subordinate to any Facility Mortgage, provided, however, that such subordination shall be conditioned upon
Owner and any Mortgagee providing to Manager a non-disturbance agreement in form and substance acceptable to Manager acting reasonably only to the extent of Owner’s efforts required pursuant to Section 10.3 (and, if there is any
conflict between the provisions of Section 10.3 hereof and the provisions of this Section 18.3, the provisions of Section 10.3 shall govern). 

Manager shall be obligated to Owner or any Mortgagee coming into possession or title to the Facility at foreclosure or as a subsequent
purchaser from Owner or a Mortgagee or its designee (each, a “Subsequent Owner”) to perform all of the terms and conditions of this Agreement for the balance of the remaining term hereof, with the same force and effect as if such
Subsequent Owner were the Owner. 
 If the Loan Documents or any subordination, non-disturbance and attornment agreement
executed by Manager contains provisions requiring Manager (upon default under the Facility Mortgage, or upon various other stipulated conditions) to pay certain amounts which are otherwise due to Owner under this Agreement (after the payment of
Facility Expenses) to the Mortgagee or its designee (rather than to Owner), Owner hereby gives its consent to such provisions, which consent shall be deemed to be irrevocable until the entire debt secured by the Facility Mortgage has been
discharged. 
 18.4 No Brokerage. Each party represents to the other that it has not engaged a broker in connection with
this transaction, and agrees to defend, indemnify, and hold the other party harmless from any claim made by a broker through the indemnifying party. 
 18.5 Costs of Dispute. In any legal action or proceeding arising out of this Agreement, the successful or prevailing party or parties therein will be entitled to recover from the other party or
parties reasonable attorneys’ fees and other costs incurred in that action or proceeding, including those related to appeal of any such action. The recovery of attorneys’ fees and costs will be in addition to any other relief to which the
successful or prevailing party or parties may be entitled. A party will be deemed to prevail if an action or proceeding commenced against it is (a) dismissed or non-suited, whether voluntarily or involuntarily or (b) if the amount due from
such party as a result of final determination of such action or proceeding is less than the last bona fide settlement offer of the other party. 
 18.6 Governing Law; Governing Currency. The parties agree that this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia [Province of
            ] without regard to its principles of conflict of laws, except to the extent that the laws of the State [Province] in which the Facility is located shall apply
to the management and operation of the Facility if required by applicable State [Province] law. All dollar amounts specified herein shall be payable in United States [Canadian] dollars. 

18.7 Limitation of Liability; Survival. To the maximum extent permitted by applicable law, no member, shareholder, officer,
director, employee or agent of any party to this Agreement shall have any personal liability with respect to the liabilities or obligations of such party under 

  
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this Agreement or any document executed by such party pursuant to this Agreement. The indemnities contained in Section 15.2 shall survive termination of this Agreement for matters
that arose before such termination and shall be held in trust by the parties hereto for the beneficiaries of such indemnities. 

18.8 Notices. Any and all notices, including any demands, consents, approvals, offers, elections, reports, designations or
information, responses and other communications required or permitted under this Agreement shall be deemed adequately given if in writing, addressed to the recipient of the notice at the addresses set forth below (or to such other addresses as the
parties may specify by due notice to the other parties) and if delivered either (a) in hand, in which case it will be deemed delivered on the date of delivery or on the date delivery was refused by the addressee, (b) by United States or
Canadian mail, as applicable, postage prepaid, registered or certified, with return receipt requested, in which case it will be deemed delivered on the date of delivery as established by the return receipt (or the date on which the return receipt
confirms that acceptance of delivery was refused by the addressee), (c) by Federal Express or similar expedited commercial carrier, with all freight charges prepaid, in which case it will be deemed delivered on the date of delivery as
established by the courier service confirmation (or the date on which the courier service confirms that acceptance of delivery was refused by the addressee), (d) by facsimile transmission with a hard copy to follow by any of the other methods
above, in which case it will be deemed delivered on the day and at the time indicated in the sender’s automatic acknowledgment, (e) with respect to notices from Owner regarding Other Day Reports or Quarterly Reports in those instances
described in Sections 14.1(a)(vi) and 14.1(a)(vii), by e-mail to the party designated by Manager (or, in the absence of any designation, to             ), (f) with
respect to delivery by Manager to Owner of written reports required under Section 6.1, Section 11.2(b), Section 11.2(d) or Exhibit E or any Other Approved Electronic Deliveries, by website portal in
accordance with current practice as of the Amendment Date or by such other reasonable electronic means upon which the parties may from time to time agree in writing, or (g) with respect to delivery by Manager to Owner of written reports
required under Section 6.2(d), by e-mail to T. Richard Riney (RRiney@Ventasreit.com) or his successor as General Counsel of Ventas, Inc. If a notice is sent to a party, then copies of such notice under this Section shall also be sent by the
same delivery method to the copy recipients, however, failure to do so shall not invalidate any such notice. Any receipt of notice after recipient’s normal business hours shall be deemed to have been received on the next Business Day. All such
notices shall be by in writing and be addressed as follows: 
  

			
	 If to Owner:
	  	
		  	c/o Ventas Realty, Limited Partnership
		  	111 South Wacker Drive, Suite 4800
		  	Chicago, Illinois 60606
		  	Attn:    Senior Vice President, Asset Management
		  	Fax:    (312) 660-3850
		
	 With a copy to:
	  	c/o Ventas, Inc.
		  	10350 Ormsby Park Place, Suite 300
		  	Louisville, Kentucky 40223
		  	Attn:    General Counsel
		  	Fax:    (502)357-9001

  
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	 and to:
	  	Barack Ferrazzano Kirschbaum & Nagelberg LLP
		  	200 West Madison Street, Suite 3900
		  	Chicago, Illinois 60606
		  	Attn:    Douglas W. Anderson, Esq.
		  	Fax:    (312) 984-3150
		
	 If to Manager:
	  	[Sunrise Senior Living Management, Inc. / Sunrise North Senior Living Ltd.]
		  	c/o Sunrise Senior Living Management, Inc.
		  	7900 Westpark Drive, Suite T-900
		  	McLean, Virginia 22102
		  	Attn:    General Counsel
		  	Fax:    (703) ____-_____
		
	 With a copy to:
	  	Fried, Frank, Harris, Shriver & Jacobson LLP
		  	One New York Plaza
		  	New York, New York 20001
		  	Attn:     Paul M. Reinstein, Esq. and Richard A. Steinwurtzel, Esq.
		  	Fax:    (212) 859-4000

 or to such other address and to the attention of such other person as either party may from time to time designate in writing. Refusal to accept delivery shall constitute receipt. Whenever under this
Agreement a notice is required to be delivered, or an action is required to be taken, on a day which is not a Business Day or is required to be delivered, or an action is required to be taken, not later than a specific day which is not a Business
Day, the day of required delivery or required action shall automatically be extended to the next Business Day; provided, however, that the provisions of this sentence shall not apply to the limited grace period under
Section 14.1(a)(v) that permits, under certain conditions (further specified in Section 14.1(a)(v)), a delinquent 8th Business Day Report to be delivered on or prior to the fifteenth (15th) day of the applicable calendar month before such delinquent
delivery constitutes a Manager Event of Default, i.e., the references to the fifteenth (15th) day of the applicable calendar month in Section 14.1(a)(v) are not, and shall not be, subject to extension, for any reason whatsoever, regardless of whether the fifteenth (15th) day of a calendar month falls on a Business Day or otherwise.
As used herein, the term “Other Approved Electronic Deliveries” means any information or reports Owner from time to time agrees in writing (it being understood that Owner shall be under no obligation to so agree) may be delivered in
accordance with clause (f) of the first sentence of this Section 18.8. 
 18.9 Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be deemed an original. 
 18.10 Severability. If
any term or provision of this Agreement or the application thereof to any person or circumstance is held to be invalid or unenforceable for any reason, 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 

  
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affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 

18.11 Gender and Number. Whenever the context of this Agreement requires, the gender of all words herein shall include the
masculine, feminine, and neuter, and the number of all words herein shall include the singular and plural. 
 18.12 Division
and Headings. The division of this Agreement into sections and subsections and the use of captions and headings in connection therewith are solely for convenience and shall have no legal effect whatsoever in construing the provisions of this
Agreement. 
 18.13 Confidentiality of Information. Manager and Owner agree to keep confidential and not to use or to
disclose to others, except as expressly consented to in writing by the other party or required by law, or to lenders, purchasers, prospective lenders or purchasers, and professional advisors, all of whom will be deemed to be bound by the
confidentiality provisions of this Agreement, any and all of their respective secrets or confidential technology, proprietary information, customer lists, or trade secrets, or any confidential matter or confidential items ascertained through their
association with each other. 
 18.14 Right to Perform. In the event that Owner or Manager shall fail to perform any duty
or fulfill any obligation hereunder, Owner or Manager, in addition to any rights or remedies available to it under law, shall have the right, but not the obligation, to perform any such duty or fulfill any such obligation. 

18.15 Assignment by Manager. 
 (a) Manager shall have the right to assign this Agreement to an Affiliate of Manager after thirty (30) days written notice to Owner, provided such assignee remains an Affiliate of Manager and if it
ceases to be an Affiliate this Agreement shall be assigned to another Affiliate of Manager. Such Affiliate shall assume all obligations of Manager under this Agreement, in writing. All assignment documentation shall be satisfactory to Owner in its
reasonable discretion. Manager shall reimburse Owner for reasonable legal fees incurred in reviewing any such assignment and assumption documents. Manager shall not have the right to assign this Agreement to any non-Affiliate without Owner’s
prior, written permission, which permission may be granted or withheld in Owner’s sole discretion. 
 (b)
Anything in this Agreement to the contrary notwithstanding, in no event shall Manager be permitted to directly or indirectly assign, pledge or encumber this Agreement or its interest in this Agreement, whether by operation of law or otherwise, if
such transfer would result in Manager not being deemed an “Eligible Independent Contractor” as defined by the United States Internal Revenue Code of 1986, as it may be amended or replaced from time to time. 

18.16 Assignment by Owner. So long as no Owner Event of Default has occurred and remains uncured, Owner shall have the right to
transfer its entire interest in this Agreement, together with (but not independent of) the direct or indirect transfer of all or substantially all of Owner’s interest in the Facility only in compliance with the [Master Agreement and the]
 

  
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provisions of Paragraph 7 of the January 14, 2007 Letter Agreement which Paragraph 7 Owner acknowledges and agrees is applicable and is in full force and effect as of the Amendment Date
notwithstanding the sale of the Seller Interests (as defined in the Master Agreement) pursuant to the Purchase and Sale Agreement (as defined in the Master Agreement). 
 18.17 Entire Agreement /Amendment / Conflicts Among Agreements. 
 (a) With respect to the subject matter hereof, this Agreement supersedes all previous contracts (including, without limitation, the Original Management Agreement, but not including the Letter Agreements)
and together with the Master Agreement and the Letter Agreements constitutes the entire agreement between the parties, and no party shall be entitled to benefits other than those specified herein. As between the parties, no oral statements or prior
written material not specifically incorporated herein shall be of any force and effect. The parties specifically acknowledge that, in entering into and executing this Agreement, the parties have relied solely upon the representations and agreements
contained in this Agreement and the Original Management Agreement and no others. All prior representations or agreements not expressly incorporated herein, whether written or verbal, are superseded, and no changes in or additions to this Agreement
shall be recognized unless and until made in writing and signed by both parties hereto. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the
same instrument. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, (X) this
Agreement is supplemented by the January 14, 2007 Letter Agreement, the 2008 Letter Agreement and the 2009 Letter Agreement, and by the provisions of the Strategic Alliance Agreement that continue to have force and effect pursuant to the terms
of the January 14, 2007 Letter Agreement; (Y) each of such Letter Agreements, and such provisions of the Strategic Alliance Agreement, remain in full force and effect, notwithstanding this Agreement, except as follows: (i) Section 5
of the 2008 Letter Agreement shall not apply insofar as it conflicts or is inconsistent with this Agreement or the Master Agreement, (ii) Paragraph 7 of the January 14, 2007 Letter Agreement shall not apply insofar as it conflicts or is
inconsistent with Section 2.3 of the Master Agreement, and (iii) Paragraphs 6 and 10 of the January 14, 2007 Letter Agreement, and Sections 6, 7 and 9 of the 2008 Letter Agreement, are superseded by this Agreement as of the Amendment
Date; and (Z) except as specifically modified by this Agreement, the other Restated Management Agreements (as such term is defined in the Master Agreement) and the Master Agreement, and subject to the terms of subsections (X) and
(Y) above and Section 18.1, Section 18.3, Section 18.4 and Section 18.5 of the Master Agreement, any agreements between SSLI and/or its Affiliates, on the one hand, and Ventas SSL, Ventas, Inc.
and/or their respective Affiliates, on the other hand, that were in existence immediately prior to the Amendment Date, remain in full force and effect in accordance with their respective terms. 

(c) No modifications, change, amendments or additions to this Agreement shall be recognized or enforceable unless and
until made in writing and signed by the parties hereto. 
 18.18 Relationship Between the Parties. The relationship
between Owner and Manager pursuant to this Agreement shall not be one of general agency, but shall be that of Owner with an 

  
 68 

 
independent contractor; provided, however, that with respect to those specific and limited circumstances in which (a) Manager is holding funds for the account of Owner or
(b) Manager is required to act as authorized representative for Owner with respect to agreements with residents pursuant to licenses or Legal Requirements, the relationship of Manager to Owner shall be that of authorized representative (with
limited agency). Neither this Agreement nor any agreements, instruments, documents or transactions contemplated hereby shall in any respect be interpreted, deemed or construed as making Owner a partner or joint venturer with Manager or as creating
any similar relationship or entity, and each party agrees that it will not make any contrary assertion, contention, claim or counterclaim in any action, suit or other legal proceeding involving the other. 

18.19 Force Majeure. As used in this Agreement, the term “Force Majeure” shall mean any failure to perform an
obligation under this Agreement when the party so obligated is prevented from so performing by Acts of God, strike, lockout or labor unrest, sabotage, fire, order or regulation of or by any Governmental Authority (other than orders or regulations of
a Governmental Authority resulting from the obligated party’s non-compliance with typical and ordinary health, licensing and construction laws, rules or regulations) or because of war (declared or undeclared), acts of terrorism, riot or other
civil commotion; provided, however, that the lack of financial resources or a failure to comply with existing laws shall never be excused. 
 18.20 Right to Inspect. Owner or its agents shall have access to the Facility upon reasonable notice at any and all reasonable times, with Manager’s reasonable co-operation and assistance, for
the purpose of inspection or showing the Facility to prospective purchasers, investors, owners, or mortgagees. 
 18.21
Binding Effect. This Agreement shall be binding on each party’s successors and assigns and shall inure to the benefit of each party’s successors and permitted assigns. 

  
 69 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under seal
by their duly authorized offices, all as of the day and year first above written. 
  

					
	OWNER:
	
	[US SIGNATURE BLOCK]
	
	                           
                     , a Delaware limited liability company
		
	By:	 	                           
                                         
        ,
		 	a	 	 
		 	its	 	 
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 
	
	[CANADA SIGNATURE BLOCK]
	
	                           
                         , an Ontario limited partnership
		
	By:	 	                           
                                         
        ,
		 	a	 	 
		 	its	 	 
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

 
					
	MANAGER:
	
	 [SUNRISE SENIOR LIVING MANAGEMENT,
 INC., a Virginia corporation / SUNRISE
 SENIOR LIVING LTD., a New
Brunswick
 corporation]

			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

 EXHIBIT A 

Description of Property 

 EXHIBIT B 

Approved Budget 

 EXHIBIT C 

Shared Expenses 
  

	 	•	 	 Risk Management Administration 

  

	 	•	 	 Purchasing Administration 

  

	 	•	 	 Time & Attendance System 

  

	 	•	 	 Internet Marketing 

  

	 	•	 	 Training Materials 

  

	 	•	 	 Sunrise University 

  

	 	•	 	 Team Member Satisfaction Survey 

  

	 	•	 	 Resident Satisfaction Survey 

  

	 	•	 	 Mystery Shopper & Quality Assurance 

  

	 	•	 	 Bank Service Charges & Other Banking Fees 

  

	 	•	 	 Business Manager 

  

	 	•	 	 Technology Help Desk 

  

	 	•	 	 Connectivity (Shared & Direct) 

  

	 	•	 	 Resident Billing System, Support and Print & Delivery 

 

	 	•	 	 Preventative Maintenance Program 

  

	 	•	 	 Sales System 

  

	 	•	 	 Desktop Software Licensing 

  

	 	•	 	 Sales Training Programs (Excellence in Selling, Sales Skills, Focus and External Business Development) 

 

	 	•	 	 Predictive Index 

  

	 	•	 	 Tax Advice 

  

	 	•	 	 Recruitment Marketing & Advertising 

  

	 	•	 	 Payroll Staff, Training & Communication 

	 	•	 	 Accounts Payable Processing 

  

	 	•	 	 Cost Report Expense 

  

	 	•	 	 ED Basics 

  

	 	•	 	 Regional Facilities Expense 

  

	 	•	 	 Registrars Office 

  

	 	•	 	 Product Development 

  

	 	•	 	 Memory Care Training 

  

	 	•	 	 TALX (Human Resources Expense) 

  

	 	•	 	 Payroll Change 

  

	 	•	 	 E-Newsletter 

  

	 	•	 	 Horizon (Sales & Marketing Expense) 

  

	 	•	 	 Print Yellow Pages 

  

	 	•	 	 Website (Sales & Marketing Expense) 

  

	 	•	 	 Emergency Resources 

  

	 	•	 	 Online Licensing Fee 

  

	 	•	 	 Referral Subscriptions (excluding the “A Place for Mom” Program) 

 EXHIBIT C-1 

Current Formula and Methodology for Allocation of Shared Expenses 

 SUNRISE SENIOR LIVING 

PRIVILEGED AND CONFIDENTIAL 
  

									
	 Program Name on
 Exhibit C
	  	 Sunrise 2010

Program Name
	  	Program Cost	  	Numerator	  	Denominator
	Risk Management Administration	  	Risk Management Administration	  	[***]	  	[***]	  	[***]
					
	Purchasing Administration	  	Purchasing Administration	  	[***]	  	[***]	  	[***]
					
	Time & Attendance System	  	Time and Attendance System	  	[***]	  	[***]	  	[***]
					
	Internet Marketing	  	Internet Marketing	  	[***]	  	[***]	  	[***]
					
	Training Materials	  	Training Materials - Liberty	  	[***]	  	[***]	  	[***]
					
	Sunrise University	  		  		  	[***]	  	
					
	Team Member Satisfaction Survey	  	Team Member Satisfaction Survey	  	[***]	  	[***]	  	[***]
					
	Resident Satisfaction Survey	  	Resident Satisfaction Survey	  	[***]	  	[***]	  	[***]
					
	Mystery Shopper & Quality Assurance	  	Mystery Shop	  	[***]	  	[***]	  	[***]
					
	Bank Service Charges & Other Banking Fees	  	Bank Service Charges	  	[***]	  	[***]	  	[***]
					
	Business Manager	  	Area Controllers (Regional Business Managers)	  	[***]	  	[***]	  	[***]
					
	Technology Help Desk	  	Technology Help Desk	  	[***]	  	[***]	  	[***]
					
	Connectivity (Shared & Direct)	  	Connectivity Infrastructure - Direct	  	[***]	  	[***]	  	[***]

 SUNRISE SENIOR LIVING 

PRIVILEGED AND CONFIDENTIAL 
  

									
	 Program Name on
 Exhibit C
	  	 Sunrise 2010

Program Name
	  	Program Cost	  	Numerator	  	Denominator
		  	Connectivity Infrastructure - Shared	  	[***]	  	[***]	  	[***]
					
	Resident Billing System, Support and Print & Delivery	  	Resident Billing Software - BASIS	  	[***]	  	[***]	  	[***]
					
		  	Resident Billing Support	  	[***]	  	[***]	  	[***]
					
		  	Resident Bill Print and Delivery	  	[***]	  	[***]	  	[***]
					
	Preventative Maintenance Program	  	Preventive Maintenance System	  	[***]	  	[***]	  	[***]
					
	Sales System	  	Sales System - FOCUS	  	[***]	  	[***]	  	[***]
					
	Desktop Software Licensing	  	Desktop Software Licensing	  	[***]	  	[***]	  	[***]
					
	Sales Training Programs (Excellence in Selling, Sales Skills, Focus and External Business Development)	  	Sales Training - Excellence in Selling	  	[***]	  	[***]	  	[***]
					
		  	Sales Training - Selling Skills	  	[***]	  	[***]	  	[***]
					
		  	Sales Training - FOCUS	  	[***]	  	[***]	  	[***]
					
		  	Sales Training - External Business Development	  	[***]	  	[***]	  	[***]
					
	Predictive Index	  	Predictive Index	  	[***]	  	[***]	  	[***]
					
	Tax Advice	  	Tax Compliance	  	[***]	  	[***]	  	[***]
					
	Recruitment Marketing & Advertising	  	Recruitment Marketing and Advertising	  	[***]	  	[***]	  	[***]
					
	Payroll Staff, Training & Communication	  	Payroll Staff, Training and Communications	  	[***]	  	[***]	  	[***]

 SUNRISE SENIOR LIVING 

PRIVILEGED AND CONFIDENTIAL 
  

									
	 Program Name on
 Exhibit C
	  	 Sunrise 2010

Program Name
	  	Program Cost	  	Numerator	  	Denominator
	Accounts Payable Processing	  	Accounts Payable Processing	  	[***]	  	[***]	  	[***]
					
	Cost Report Expense	  	Cost Report Expense (Medicare/Medicaid Reimbursement)	  	[***]	  	[***]	  	[***]
					
	ED Basics	  	ED Basics	  	[***]	  	[***]	  	[***]
					
	Regional Facilities Expense	  	Regional Facilities Expense	  	[***]	  	[***]	  	[***]
					
	Registrars Office	  	Training Implementation and Compliance (Registrar’s Office)	  	[***]	  	[***]	  	[***]
					
	Product Development	  	Product Development (Training)	  	[***]	  	[***]	  	[***]
					
	Memory Care Training	  	Memory Care Training	  	[***]	  	[***]	  	[***]
					
	TALX (Human Resources Expense)	  	TALX	  	[***]	  	[***]	  	[***]
					
	Payroll Change	  	Payroll Operations (Payroll Charge)	  	[***]	  	[***]	  	[***]
					
	E-Newsletter	  	E-newsletter Sunrise Connections	  	[***]	  	[***]	  	[***]
					
	Horizon (Sales & Marketing Expense)	  	Horizon	  	[***]	  	[***]	  	[***]
					
	Print Yellow Pages	  	Yellow Pages	  	[***]	  	[***]	  	[***]]
					
	Website (Sales & Marketing Expense)	  	Sunrise Website	  	[***]	  	[***]	  	[***]
					
	Emergency Resources	  	Hurricane Preparedness	  	[***]	  	[***]	  	[***]
					
	Online Licensing Fee	  	Licensing Fee (Online Learning)	  	[***]	  	[***]	  	[***]
					
	Referral Subscriptions	  	Referral Subscriptions	  	[***]	  	[***]	  	[***]

 EXHIBIT D 

Minimum Insurance Requirements 
 The parties hereto mutually agree that the below listed minimum insurance requirements (the “Insurance Program”) shall be subject to reasonable availability of such insurance in the
marketplace at time of procurement. 
 All insurers must have an A.M. Best rating of A-/VII or better. Certificates of insurance for all
coverages will be issued as soon as practical after renewal terms have been finalized. 
 ARTICLE I 

LINES OF INSURANCE 
 1.01 Property Insurance. Coverage will be placed in an amount not less than the full replacement cost value of the facility, subject to no coinsurance requirement, including all property insurance
coverages of the type and limits typically maintained for each facility. The values associated with each property will be reviewed annually for adequacy. 
 Coverage should include loss or damage by fire, vandalism and malicious mischief, extended coverage perils commonly known as “All Risk” including but not limited to flood, the backup of sewers
and drains and earthquake. Business Interruption insurance should be included. Boiler and Machinery coverage is also required on a full replacement cost basis, either included within the “All Risk” policy, or on a stand-alone basis.

 1.02 Commercial General and Professional Liability Insurance. Coverage should include claims for bodily injury,
including death resulting therefrom, personal injury and property damage under a policy of commercial general liability insurance for limits not less than as stated below. 
 $5,000,000.00 each occurrence 
 $5,000,000.00 annual aggregate 

Aggregate does not apply on a per location basis 
 1.03 Crime Insurance. Coverage shall be provided for loss or damage commonly covered by blanket crime insurance including employee dishonesty, loss of money orders or paper currency,
depositor’s forgery, in commercially reasonable amounts for limits not less than as follows: 
 $5,000,000.00 Employee
Dishonesty 
 $5,000,000.00 Depositor and Forgery 
 $5,000,000.00 Money and Securities (Inside and Out) 
 1.04 Automobile
Liability. Coverage shall be provided for all owned and non-owned vehicles, including rented and leased vehicles, containing the following minimum limits: 
 $1,000,000.00 Combined Single Limit 

 1.05 Umbrella/Excess Liability. Coverage shall be provided containing limits not less
than the following: 
 $25,000,000.00 per occurrence 
 $25,000,000.00 Annual Aggregate 
 1.06 Non-Medical Professional Liability
covering the management and supervision of Real Estate, Development and Design Liability. 
 $5,000,000.00 Occurrence Limit

 $5,000,000.00 Annual Aggregate 
 We currently have these limits for the Architect and Engineering policy. However we do not intend on keeping these limits in future years if we do not resume development. 

1.07 Workers’ Compensation (statutory limits) and Employers Liability Insurance. Coverage shall be provided and kept in full
force and effect with limits of not less than as follows: 
 $1,000,000.00 each employee 

$1,000,000.00 each accident 
 $1,000,000.00 policy limit 
 1.08 Employment Practices Liability. Coverage
shall be provided containing limits not less than the following: 
 $5,000,000.00 per occurrence 

ARTICLE II 

INSURANCE COST ALLOCATION 
 2.01 The cost associated with the Insurance Program, including projected ultimate losses within deductible layers or self-insured retentions and premiums, will be allocated to all facilities operated by
Manager at the time of Manager’s Insurance Program renewal date. The allocations will be determined based on the following: 
  

			
	Property	  	Rate per $100.00 of Value
	GL/PL	  	Rate per Resident Capacity, by State [Province] and Bed Type
	Umbrella/Excess Liability	  	Rate per Resident Capacity
	Automobile	  	Rate per vehicle
	Crime	  	Rate per Facility Employee or Payroll
	Earthquake (CA Only)	  	Allocated to facilities requiring coverage only on a Rate per $100.00 of Value
	Flood	  	Allocated to facilities requiring coverage

			
	Workers’ Compensation	  	Rate per $100.00 of Facility Payroll by State [Province] and Class Code
	Employment Practices Liability	  	Rate per Facility Employee or Payroll

ARTICLE III 

FINANCIAL RESPONSIBILITY 
 3.01 For those lines of coverage to which a policy deductible or self-insured retention applies, each facility will be responsible for the cost of a portion of the deductible or self-insured retention
based on the projected ultimate loss estimate. The projected ultimate loss estimate will be derived using a Third Party actuarial analysis of Manager’s loss experience and other external factors, including, but not limited to, inflation and
increased litigation. 
 Within the projected ultimate loss estimate, each facility will be responsible for a deductible of up to $25,000.00 per
occurrence or the amount of the per occurrence deductible or self-insured retention under the insurance policy, if less (the “Facility Deductible”). Manager reserves the right to adjust the Facility Deductible by line of insurance
coverage for certain high-risk jurisdictions. Such Facility Deductible will be paid as a Facility Expense up to the Facility Deductible limit. 
 3.02 In the event that any of the required insurance placements are provided on a claims made basis, Manager will provide an extended reporting period coverage or “tail”, reasonably available in
the commercial insurance market for each such coverage or coverages, but in no even less than two years after the expiration of such coverage. The cost of such tail coverage will be treated as a Facility Expense. 

3.03 Upon Termination, an escrow fund in an amount reasonably acceptable to Manager shall be established from the proceeds of Gross
Revenues (or, if such Gross Revenues are not sufficient, with funds provided by Owner) to cover the amount of any Facility Deductible and all other cost and expense which shall eventually have to be paid by either Owner or Manager with respect to
pending or contingent claims, including those that arise after termination of this Agreement from causes arising during the Term of this Agreement. Upon the final disposition of all such pending or contingent claims, any unexpended funds remaining
in such escrow shall be paid to Owner. Cash Flow for the final Fiscal Year shall be recalculated as a result of any claims paid and Manager and Owner shall each pay to the other such amounts as may be required as a result of such adjustment.

 EXHIBIT E 

Financial Reporting Requirements 
 Financial Reporting Requirements 
  

																							
	 Reports
	  	Due Date	 	  	Monthly	 	  	Quarterly	 	  	Annually	 	  	Type of Report	 	  	 Report Name

	 System Generated Reports:
	  				  				  				  				  				  	
	Community Statement of Profit and Loss	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	OU#_Date_CommunityPL.xls
	Portfolio Statement of Profit and Loss	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	Portfolio Name_Date_PL.xls
	Portfolio Trial Balance	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	Portfolio Name_Date_TB.xls
	Consolidated Transaction Upload File1	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	Date_VENTAS TRNX UPLOAD.csv
	Consolidated Stat Upload File	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	Date_VENTAS STAT UPLOAD.csv
	Portfolio Bank Statements	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	BU#_OU#_last 4 digits of bank acct #.pdf
	Consolidated Statement of Profit and Loss	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	VENTAS_Date_PL.xls
	Consolidated Trial Balance	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	VENTAS_Date_TB.xls
	Consolidated Quarterly Statement of Profit and Loss	  	 	[***]	  	  				  	 	x	  	  				  	 	[***]	  	  	VENTAS_Date_QTRPL.xls
	Portfolio Rent Roll	  	 	[***]	  	  				  	 	x	  	  				  	 	[***]	  	  	Date_RentRoll_Portfolio Name.pdf
	Community Accounts Receivable Aging	  	 	[***]	  	  				  	 	x	  	  				  	 	[***]	  	  	OU#.doc
	Community Capital Expenditures Report1	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	OU#_Date_CapEx.xls
	Portfolio Capital Expenditures Report1	  	 	[***]	  	  	 	x	  	  				  				  	 	[***]	  	  	Portfolio Name_Date_CX.xls
	 Manual Reports:
	  				  				  				  				  				  	
	Portfolio Bank Reconciliations	  	 	15th	  	  	 	x	  	  				  				  	 	Other Day Report	  	  	BU#_OU#_Acct#_Bank Reconciliation_Date.xls
	Community Variance Reports	  	 	15th	  	  	 	x	  	  				  				  	 	Other Day Report	  	  	OU# Community Name VAR Date.xls
	Community Accounts Receivable Reconciliations	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	Acct 12100_Date.xls
	AR Subsystem	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	Acct 12220_Date.xls
	Unearned Rent System	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	Acct 23180_Date.xls
	Fixed Asset Rollforward2,3	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	REIT Asset_RF_Quarter.xls
	Fixed Asset System Addition/Disposal
Schedule2	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	
	Accumulated Depreciation Rollforward	  	 	15th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	REIT Accumulated_RF_Quarter.xls
	Portfolio Cash Distribution Schedules	  	 	20th	  	  	 	x	  	  				  				  	 	Other Day Report	  	  	Date Portfolio Distribution.xls
	Portfolio Intercompany Reconciliations	  	 	20th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	Portfolio IC_Date.xls
	MERLINs	  	 	As requested	  	  				  				  				  	 	N/A	  	  	
	Competitive Market Analysis	  	 	20th	  	  				  	 	x	  	  				  	 	Quarterly Report	  	  	
	Preliminary Annual Operating (and Capital)
Budget4	  	 	Nov. 15	  	  				  				  	 	x	  	  	 	N/A	  	  	
	Final Annual Operating (and Capital)
Budget4	  	 	Dec. 15	  	  				  				  	 	x	  	  	 	N/A	  	  	

  

	1	Report to include detailed journal entry transactions. 

	2	Reports must be itemized by individual transactions and broken down into categories, including, without limitation, 1) YTD expenditures, 2) cash expenditures,
3) accruals, 4) disposals, and 5) other account balance charges by individual item. All items must show variance to the capital expenditure budget, whether positive or negative. Sunrise will continue to provide the current fixed asset
roll-forward report. Sunrise will provide the additional detail as and when capability to do so exists, which will be no later than December 31, 2011. 

	3	To include information contained in Community Capital Expenditures Report (OU#_Date_CapEx.xls) and Portfolio Capital Expenditures Report
(Portfolio Name_Date_CX.xls). 

	4	Budget to Include: 1) Operating Performance, 2) Narrative with Operating Objectives and Assumptions, 3) Competitive Set Analysis, 4) Real Estate Tax Summary, and 5)
Capital Budget. 

 EXHIBIT F 

Cash Management Policies 
 Cash Management Procedures 
 Owner and Manager will implement a zero balance account
(“ZBA”) structure to efficiently manage cash in the Account, subject to any requirements imposed by any applicable Facility Mortgage or other Loan Documents. Owner (or an Affiliate of Owner) will manage a lead account for US
Facilities and Canadian Facilities. The Operating Account managed by Manager as Owner’s agent shall be zeroed out by being swept into the applicable lead account at the end of each Business Day. Owner (or its Affiliate) will determine and
maintain an appropriate cash balance in the lead account to sufficiently cover all outgoing expenditures. In order for Owner (or its Affiliate) to maintain sufficient cash for expenditures Manager shall provide information and the Account shall be
managed in accordance with the following: 
  

	 	1.	Following each check run, Manager will provide to Owner (or its designated Affiliate) an electronic file detailing all checks that were issued for each check run so
that outstanding checks on the accounts can be tracked daily by Owner or its Affiliate. [MAY NOT BE NEEDED IF VENTAS CAN ACCESS THE MATCH PAY FILE VIA BOFA, TD AND SCOTIA, ETC.] 

 

	 	2.	Weekly operating reimbursements to Manager shall be made on the same day of the week and follow an agreed upon standard for days when banks are not open for business in
the US or Canada as applicable (i.e. the reimbursement may take place on the prior Business Day). The weekly reimbursement amounts will be in consistent amounts; provided and if a greater reimbursement is needed periodically, Manager will provide
Owner (or its designated Affiliate) with the required adjusted amount not less than three Business Days prior to the scheduled date for reimbursement. 

  

	 	3.	Three Business Days prior to the scheduled date for payroll settlement, Manager shall notify Owner (or its designated Affiliate) as to the amount of the required
payroll reimbursement. The same procedure as in paragraph 2, above, will apply if the normal reimbursement day should fall on a date when banks in the US or Canada, as applicable, are not open for business. 

 

	 	4.	All fixed rate debt service payments shall be set up to be automatically debited from the Operating Account on the later of the date payment is due, or the last day of
any grace period allowed by the Mortgagee for payments by automatic debit. 

  

	 	5.	Manager shall forward copies of any debt statement to Owner (or its designated Affiliate) upon receipt by Manager, provided that Owner shall use commercially reasonable
efforts to obtain access to such statements electronically via e-mail or lender websites. 

  

	 	6.	Following each month’s resident billing, the total amount billed and date of billing will be provided to Owner (or its designated Affiliate).

  

	 	7.	Manager shall notify Owner (or its designated Affiliate) by 12:00 p.m. eastern standard time as to any wires to be sent out that day; provided that if the aggregate
amount of the wires from all Facilities accounts for any day exceed $500,000.00, Manager shall provide not less than three (3) Business Day’s notice. 

	 	8.	ZBA transfers shall flow through a separate intercompany account on the general ledger which should balance monthly with the net sweep amount from the account.

 In addition to the foregoing, Owner shall have the right to direct and manage any changes to the current and
future bank structure for the Account and sweep accounts and Manager shall fully cooperate with such changes. This could include but is not limited to, account elimination, controlled disbursement set up, changing banks, lockbox structure, provide
Owner online access, match pay etc. 
 All notices to be provided under this Agreement shall be sent by e-mail or other
electronic media in accordance with instructions provided from time to time by Owner or its designated Affiliate. 

 EXHIBIT G 

Formula and Methodology for Determining the Portion of Cluster Advertising Costs that 

Constitutes Facility Expenses 
  

													
	 Facility
 Expense Community A
	  	       =      

 
	  	Cluster Advertising Costs	  	       ×      

 
	  	 [

 
	  	
            1            

     Number of

Communities in

        Cluster
	  	
]

 EXHIBIT H 

Form of Capital Expenditure Project Status ReportExhibit 10.122

 Exhibit 10.122 
 FIRST AMENDED AND RESTATED MASTER AGREEMENT 
 by and among 

SUNRISE SENIOR LIVING MANAGEMENT, INC., 
 SUNRISE NORTH SENIOR LIVING LTD., 
 SUNRISE SENIOR LIVING, INC. 

and 
 VENTAS SSL,
INC. 
 Date: December 1, 2010 

 TABLE OF CONTENTS 
  

									
	 1.
	  	 General
	  	 	2	  
		  	 1.1
	  	 Definitions
	  	 	2	  
		  	 1.2
	  	 Additional Defined Terms
	  	 	15	  
		  	 1.3
	  	 Rules of Construction
	  	 	17	  
		  	 1.4
	  	 Certain Provisions Regarding Currency Matters
	  	 	17	  
			
	 2.
	  	 Performance; Prohibited Investments; Certifications; SOX/SAS 70
	  	 	18	  
		  	 2.1
	  	 Goals
	  	 	18	  
		  	 2.2
	  	 Standard of Care
	  	 	19	  
		  	 2.3
	  	 Prohibited Investment
	  	 	19	  
		  	 2.4
	  	 Annual Certifications
	  	 	20	  
		  	 2.5
	  	 SOX; SAS 70
	  	 	20	  
			
	 3.
	  	 Certain Termination Rights
	  	 	21	  
		  	 3.1
	  	 Monthly Facility-Level ANOI Test
	  	 	21	  
		  	 3.2
	  	 Monthly Facility-Level ANOI Plus Applicable Previous Cure Payments Test
	  	 	23	  
		  	 3.3
	  	 Annual Facility-Level Controllable Costs Test
	  	 	26	  
		  	 3.4
	  	 Annual All-Facilities Controllable Costs Test
	  	 	27	  
		  	 3.5
	  	 Aggregate Cure Limit; Additional Limitations on Cures
	  	 	33	  
			
	 4.
	  	 Shared Expenses Credits-Back
	  	 	36	  
			
	 5.
	  	 Base Management Fee
	  	 	37	  
		  	 5.1
	  	 Base Management Fee for 2010 and 2011
	  	 	37	  
		  	 5.2
	  	 Base Management Fee from and after 2012 – Stabilized Facilities
	  	 	37	  
		  	 5.3
	  	 Base Management Fee – Estimated and Reconciling Payments – Stabilized Facilities
	  	 	38	  
		  	 5.4
	  	 Base Management Fee – Pre-Stabilized Facilities
	  	 	39	  
		  	 5.5
	  	 Certain Provisions Regarding Base Management Fees Upon Expiration or Termination of a Management Agreement
	  	 	39	  
			
	 6.
	  	 Incentive Management Fee
	  	 	40	  
		  	 6.1
	  	 Incentive Management Fee – Stabilized Facilities
	  	 	40	  
		  	 6.2
	  	 Incentive Management Fee – Pre-Stabilized Facilities
	  	 	41	  
		  	 6.3
	  	 Certain Provisions Regarding Incentive Management Fees Upon Expiration or Termination of a Management Agreement
	  	 	41	  
			
	 7.
	  	 Severance of Transferred Facility(ies)
	  	 	42	  
		  	 7.1
	  	 Certain Definitions
	  	 	42	  
		  	 7.2
	  	 Severance of Transferred Facility(ies)
	  	 	42	  
		  	 7.3
	  	 Certain Provisions Regarding Transfer
	  	 	54	  
			
	 8.
	  	 Representations of US Manager and CAN Manager (Internal Controls)
	  	 	54	  
			
	 9.
	  	 Representations and Warranties of US Manager
	  	 	56	  

  
 i 

									
	 10.
	  	 Representations and Warranties of CAN Manager
	  	 	56	  
			
	 11.
	  	 Representations and Warranties of SSLI
	  	 	57	  
			
	 12.
	  	 Representations and Warranties of Ventas SSL
	  	 	58	  
			
	 13.
	  	 Miscellaneous
	  	 	58	  
		  	 13.1
	  	 Notices
	  	 	59	  
		  	 13.2
	  	 Amendments
	  	 	60	  
		  	 13.3
	  	 Interpretation
	  	 	61	  
		  	 13.4
	  	 Counterparts
	  	 	61	  
		  	 13.5
	  	 Severability
	  	 	61	  
		  	 13.6
	  	 Binding on Successors; Assignment
	  	 	61	  
		  	 13.7
	  	 Confidentiality
	  	 	61	  
		  	 13.8
	  	 Time is of the Essence
	  	 	61	  
		  	 13.9
	  	 Taxes
	  	 	61	  
			
	 14.
	  	 REIT Compliance
	  	 	62	  
			
	 15.
	  	 Events of Default
	  	 	65	  
		  	 15.1
	  	 Events of Default
	  	 	65	  
		  	 15.2
	  	 Remedies of Ventas SSL
	  	 	68	  
		  	 15.3
	  	 No Waiver of Default
	  	 	68	  
		  	 15.4
	  	 Interest
	  	 	68	  
			
	 16.
	  	 SSLI Guarantee and Indemnity
	  	 	69	  
		  	 16.1
	  	 Guarantee
	  	 	69	  
		  	 16.2
	  	 Indemnity
	  	 	69	  
		  	 16.3
	  	 Primary Obligation
	  	 	69	  
		  	 16.4
	  	 Obligations Absolute
	  	 	69	  
		  	 16.5
	  	 No Release
	  	 	69	  
		  	 16.6
	  	 No Exhaustion of Remedies
	  	 	70	  
		  	 16.7
	  	 No Set-off
	  	 	70	  
		  	 16.8
	  	 Continuing Guarantee
	  	 	70	  
			
	 17.
	  	 Benefits and Obligations
	  	 	70	  
			
	 18.
	  	 Effect of Amendment and Restatement; Release; Certain Waivers; Certain Agreements Not to Terminate
	  	 	70	  
		  	 18.1
	  	 Relation to Existing Master Agreement
	  	 	70	  
		  	 18.2
	  	 Relation to Certain Other Documents
	  	 	71	  
		  	 18.3
	  	 Release of Ventas SSL and Certain Other Persons
	  	 	71	  
		  	 18.4
	  	 Certain Waivers
	  	 	72	  
		  	 18.5
	  	 Certain Agreements Not to Terminate
	  	 	73	  

  
 ii 

 FIRST AMENDED AND RESTATED MASTER AGREEMENT 

THIS FIRST AMENDED AND RESTATED MASTER AGREEMENT (this agreement, as it may hereafter be amended, supplemented, restated or
replaced from time to time, is herein referred to as the “Agreement”) is made as of the 1st day of December, 2010 (the “Agreement Date”) by and among (i) Sunrise Senior Living Management, Inc., a Virginia
corporation (together with its successors and permitted assigns, “US Manager”), (ii) Sunrise North Senior Living Ltd., a New Brunswick corporation (together with its successors and permitted assigns, “CAN
Manager”), (iii) Sunrise Senior Living, Inc., a Delaware corporation (“SSLI”), and (iv) Ventas SSL, Inc., a Delaware corporation (“Ventas SSL”), and each other person that from time to time
becomes a party hereto pursuant to Recital D hereof. 
 RECITALS 

A. US Manager, CAN Manager, SSLI and certain other entities heretofore entered into that certain Master Agreement dated December 23,
2004 (herein, the “Existing Master Agreement”), which Existing Master Agreement was supplemented by certain provisions contained in (i) that certain letter dated January 14, 2007 between Ventas, Inc. (“Ventas,
Inc.”) and SSLI (the “January 14, 2007 Letter Agreement”, and references herein to the January 14, 2007 Letter Agreement shall include such provisions of the Strategic Alliance Agreement as remain of some force or
effect by the terms of the January 14, 2007 Letter Agreement) and (ii) those certain letters dated June 30, 2008 (the “2008 Letter Agreement”) and April 3, 2009 (the “2009 Letter Agreement”),
each between Ventas, Inc. and SSLI (collectively, the January 14, 2007 Letter Agreement, the 2008 Letter Agreement and the 2009 Letter Agreement, as they may have been previously amended and as they may be amended, supplemented and/or restated
from time to time hereafter, the “Letter Agreements”). 
 B. The parties listed on Exhibit A
hereto (“Existing SF Owners”) are the owners (or, in the case of the listed facilities that are located in Canada, tenants or subtenants) of certain Senior Living Facilities described on Exhibit A hereto, none of which
are in the Lease Up Period, but are operating (each an “Existing Stabilized Facility” and collectively, the “Existing Stabilized Facilities”). The parties listed on Exhibit B hereto (“Existing
PSF Owners” and, with the Existing SF Owners, the “Existing Owners”) are the owners (or, in the case of the listed facilities that are located in Canada, tenants or subtenants) of certain Senior Living Facilities described
on Exhibit B hereto, each of which is in the Lease Up Period (each, an “Existing Pre-Stabilized Facility” and collectively, the “Existing Pre-Stabilized Facilities”). The Existing Stabilized Facilities
and the Existing Pre-Stabilized Facilities are collectively referred to as the “Existing Facilities”. 

C. Each of the Existing Owners (or, in certain cases, its predecessor in interest) has previously entered into a Management Agreement, or
a Pre-Opening Services and Management Agreement, with CAN Manager or US Manager with respect to each Existing Facility (as previously amended, supplemented, restated or replaced from time to time, each an “Existing Management
Agreement” and collectively, the “Existing Management Agreements”) and is simultaneously herewith entering into a First Amended and Restated Management Agreement or a First Amended and Restated Pre-Opening Services and
Management Agreement (or, in the case of certain of the Existing Facilities, a second or third such amended and restated 

 
management agreement or pre-opening services and management agreement (each such amended and restated management agreement or pre-opening services and management agreement, as hereafter amended,
supplemented, restated or replaced from time to time, a “Restated Management Agreement” and collectively, the “Restated Management Agreements”). The term of each Restated Management Agreement shall expire on the
date specified in such Restated Management Agreement, unless sooner terminated pursuant to the terms of the applicable Restated Management Agreement or this Agreement. 
 D. Senior Living Facilities that are acquired by Ventas, Inc. (or an Affiliate of Ventas, Inc.), or in which Ventas, Inc. (or such Affiliate) has an interest, and managed by a Manager in furtherance of
(i) the January 14, 2007 Letter Agreement and (ii) the provisions of the Strategic Alliance Agreement that continue to have force and effect pursuant to the terms of the January 14, 2007 Letter Agreement, are herein referred to
as “New Facilities” and, with the Existing Facilities, “Facilities”. The management agreements, or pre-opening services and management agreements, between such parties (or their Affiliates) in respect of New
Facilities, as the same may be amended, supplemented, restated or replaced from time to time, are herein referred to as “New Management Agreements” and, with the Restated Management Agreements, are herein referred to as the
“Management Agreements”. 
 E. The parties hereto intend to automatically amend Exhibit A and
Exhibit B hereto to include owners (or, if applicable, tenants or subtenants) of New Facilities that are to be listed thereon from time to time which are operating after the Lease Up Period (each a “New Stabilized Facility”)
and owners (or, if applicable, tenants or subtenants) of New Facilities that are to be listed thereon which are in the Lease Up Period (each a “New Pre-Stabilized Facility”), the owners (or, if applicable, tenants or subtenants) of
which are referred to herein as “New SF Owners” and “New PSF Owners”, respectively. 

F. The parties hereto desire, by this Agreement, to amend and restate the Existing Master Agreement in its entirety for the purpose of
setting forth their agreements with respect to certain of the rights and obligations of the Ventas SSL Parties, SSLI and Manager with respect to the performance of the Facilities over the course of the Term. It is the intention of the parties hereto
that (i) the rights and obligations set forth in this Agreement shall have priority with respect to the terms of the Management Agreements and (ii) the terms of this Agreement shall prevail to the extent of any inconsistency between this
Agreement and any Management Agreement. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby amend and restate the Existing Master Agreement in its entirety as follows: 

 

	1.	General 

 1.1
Definitions. The following terms shall have the meanings indicated or referred to below, inclusive of their singular and plural forms, except where the context requires otherwise. All initially capitalized terms used and not otherwise
defined in this Agreement shall have the 

  
 2 

 
meanings given to such terms in the Management Agreements. Unless the context otherwise requires, all references herein to “years,” “months,” or “days” shall mean
“calendar years,” “calendar months,” or “calendar days.” 
 “Actual Knowledge”
shall mean actual knowledge (which does not include any constructive, imputed, assumed or other knowledge or awareness, and without any obligation or duty of any kind to investigate or otherwise make inquiry). 

“Affiliate” means, with respect to any Person, (a) any Person who directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with such Person or (b) any Person of which such Person is the beneficial owner of a twenty-five percent (25%) or greater interest or (c) any Person who acquires all
or substantially all of the assets of such Person. A Person shall be deemed to control another Person if such Person, directly or indirectly, has the power to direct the management, operations or business of such Person. The term “beneficial
owner” is to be determined in accordance with Rule 13d-3 under the United States Securities Exchange Act of 1934, as amended. 
 “ANOI” shall mean, with respect to a particular Facility(ies) and a particular period, the sum of the following: the Net Operating Income for such Facility(ies) (calculated exclusive of
(a) any Base Management Fees and/or Incentive Management Fees, (b) any ground lease base rents and (c) any expenditures for painting and/or wallpapering), less the FF&E Reserve for such Facility(ies), in each case for the
applicable period. ANOI shall be measured in accordance with the Management Agreements relative to each Facility and this Agreement as of the end of each month. In the event of a casualty (other than a Minor Casualty (as defined in the applicable
Management Agreement)) or condemnation that affects a particular Facility and directly results in a reduction in Resident Occupancy at such Facility, then, solely for the purpose of calculations made under Section 3 hereof (and not, for
example, for the purpose of calculations of the Base Management Fee or Incentive Management Fee under, respectively, Section 5 and Section 6 hereof), the “ANOI” for such Facility shall, as determined by the
applicable Manager and Owner (both acting reasonably), be deemed to have been increased until the earlier of the commencement of business interruption insurance proceeds on account of such casualty or the cessation of any such reduction in Resident
Occupancy, to account, for the aforesaid sole purpose, for the effects of such casualty or condemnation upon such Facility’s “ANOI”. 
 “ANOI Plus Applicable Previous Cure Payments” shall mean, with respect to a particular Facility(ies) and a particular period, the ANOI for such Facility(ies) and such period, as adjusted
to include therein the effect, for such period, of any Property Performance Cure payment as provided in Section 3.2 and Section 3.2.1 hereof, Facility Expense Overage Cure payment as provided in Section 3.3 and
Section 3.3.1 hereof and/or Aggregate Expense Overage Cure payment as provided in Section 3.4 and Section 3.4.1 hereof. 
 “Applicable Aggregate Limit” shall mean, with respect to a particular calendar year, the sum, in US Dollars, of (a) the amount of the budgeted aggregate Controllable Costs for all
Facilities located in the United States for such calendar year (such amount, as it may be reduced or increased for such calendar year as described below in this definition, is herein referred to as the “Budgeted US Facilities Controllable
Costs”), plus (b) the amount of the budgeted aggregate Controllable Costs for all Facilities located in Canada for such calendar year (but with such amount to be translated into US Dollars using the Applicable Translation Rate as of
the date 

  
 3 

 
that the Applicable Aggregate Limit is being calculated) (such amount, as it may be reduced or increased for such calendar year as described below in this definition, as translated into US
Dollars, is herein referred to as the “Translated Budgeted Canadian Facilities Controllable Costs”; and the sum of the Budgeted US Facilities Controllable Costs and the Translated Budgeted Canadian Facilities Controllable Costs is
herein referred to as the “Translated Budgeted All Facilities Controllable Costs”), plus (c) the product of (i) the Applicable Cushion Amount (as defined below) times (ii) the Applicable Cushion Amount US Index Factor
that is applicable for such calendar year; provided, however, that such Applicable Aggregate Limit shall be reduced if a Facility(ies) cease(s) to be managed under a Management Agreement and such Applicable Aggregate Limit shall be increased
if any New Facility(ies) commence(s) to be managed under a Management Agreement and provided further that the term “Applicable Cushion Amount” shall mean an amount equal to Ten Million US Dollars ($10,000,000.00) (or such
different amount to which such $10,000,000.00 amount has previously been increased or decreased due to proportionate reductions of such amount, as illustrated and explained in the example below, as a result of previous instances where a Facility has
ceased to be managed under a Management Agreement or due to increases of such amount as a result of previous instances where a New Facility has commenced to be managed under a Management Agreement). Any such reduction of the Applicable Aggregate
Limit due to a Facility ceasing to be managed under a Management Agreement shall be applied proportionally to both the Applicable Cushion Amount and the Translated Budgeted All Facilities Controllable Costs (as set forth in the example below and, in
connection with determining the respective amounts of such reductions, using the roundings of calculations that are specified in such example). Any such increase of the Applicable Aggregate Limit due to a New Facility commencing to be managed under
a Management Agreement shall be determined as follows: 
 (A) In the case of any such New Stabilized Facility, the Applicable
Aggregate Limit shall be increased by (x) including in the Budgeted US Facilities Controllable Costs or the Translated Budgeted Canadian Facilities Controllable Costs (as applicable depending upon whether such New Stabilized Facility is located
in the United States or Canada) the amount (translated into US Dollars if such New Stabilized Facility is located in Canada) that is budgeted for Controllable Costs at such New Stabilized Facility for the calendar year or partial calendar year
following the execution and delivery of the Management Agreement for such New Stabilized Facility and (y) increasing the Applicable Cushion Amount by an amount, unless Ventas SSL and SSLI otherwise agree in writing, equal to the product
(rounded to the nearest whole number) of (1) the annualized amount of the amount (translated into US Dollars, if applicable) budgeted for Controllable Costs for such New Stabilized Facility for the calendar year or portion thereof following the
execution and delivery of the Management Agreement for such New Stabilized Facility times (2) a fraction, the numerator of which is the Applicable Cushion Amount immediately prior to such execution and delivery date and the denominator of which
is the Translated Budgeted All Facilities Controllable Costs amount immediately prior to such execution and delivery date (provided, however, that, except if such execution and delivery date is January 1, (I) for the period from
such execution and delivery date through the end of the applicable calendar year, the amount referenced in this subsection (y) shall be only a prorated portion of such amount (rounded to the nearest whole number) for the portion of the
applicable calendar year on and after such execution and delivery date , and (II) as of the beginning of the following calendar year, the full amount 

  
 4 

 
referenced in this subsection (y) shall be included in the Applicable Cushion Amount and be subject to adjustment by the Applicable Cushion Amount US Index Factor at the beginning of such
following calendar year); and 
 (B) In the case of any such New Pre-Stabilized Facility, the Applicable Aggregate Limit shall be
increased, commencing with the first calendar year to which Section 3.3 and Section 3.4 hereof shall apply to such New Pre-Stabilized Facility (as provided in Section 3.3.3 hereof), by (x) including in the
Budgeted US Facilities Controllable Costs or the Translated Budgeted Canadian Facilities Controllable Costs (as applicable depending upon whether such New Pre-Stabilized Facility is located in the United States or Canada) the amount (translated into
US Dollars if such New Pre-Stabilized Facility is located in Canada) that is budgeted for Controllable Costs at such New Pre-Stabilized Facility for the aforesaid first calendar year and (y) increasing the Applicable Cushion Amount by an
amount, unless Ventas SSL and SSLI otherwise agree in writing, equal to the product (rounded to the nearest whole number) of (1) the amount (translated into US Dollars, if applicable) budgeted for Controllable Costs for such New Pre-Stabilized
Facility for the aforesaid first calendar year times (2) a fraction, the numerator of which is the Applicable Cushion Amount immediately prior to the commencement of such first calendar year and the denominator of which is the Translated
Budgeted All Facilities Controllable Costs amount for such first calendar year (exclusive of any amount relative to such New Pre-Stabilized Facility). 
 For example, assume that the amount of the Translated Budgeted All Facilities Controllable Costs for a particular calendar year equaled $275,000,000.00, that the amount of the budgeted aggregate
Controllable Costs for Facility A, located in the United States, for such calendar year equaled $3,500,000.00, that, as of June 30 of such year, Facility A ceased to be managed under a Management Agreement, that, other than the aforesaid
cessation of management of Facility A, no other Facility ceased, and no New Facility commenced, to be managed under a Management Agreement during such calendar year, and that the Applicable Cushion Amount US Index Factor that is applicable to
such calendar year equaled 1.0000. In such event, (a) as of the commencement of such year, the Applicable Aggregate Limit would have equaled $285,000,000.00 ($275,000,000.00 + ($10,000,000.00 x 1.0000) = $285,000,000.00), (b) due to the
aforesaid cessation of management of Facility A on June 30, the Applicable Aggregate Limit would have been reduced to equal $281,371,950.00 (the budgeted aggregate Controllable Costs for Facility A represented 1.273% (rounded to the nearest one
thousandth (1/1000) of a percent) of the Translated Budgeted All Facilities Controllable Costs, so both the amount of the Translated Budgeted All Facilities Controllable Costs and the aforesaid $10,000,000.00 amount would be reduced by such
1.273% to calculate the reduced Applicable Aggregate Limit after the aforesaid cessation of management of Facility A) (i.e., ($275,000,000.00 - (1.273% of $275,000,000.00 = rounded to the nearest whole number, $3,500,750.00) = $271,499,250.00) +
((($10,000,000.00 – (1.273% of $10,000,000.00 = rounded to the nearest whole number, $127,300.00) = rounded to the nearest whole number, $9,872,700.00) x 1.0000) = rounded to the nearest whole number, $9,872,700.00) = $281,371,950.00), and
(c) for purposes of determining whether an Aggregate Expense Termination Right exists with respect to such calendar year, the amount of the actual aggregate Controllable Costs at all of the remaining Facilities (i.e. exclusive of any
Controllable Costs at Facility A) for such calendar year would be compared to the 

  
 5 

 
Applicable Aggregate Limit (as reduced to $281,371,950.00 due to the aforesaid cessation of management of Facility A) to determine if an Aggregate Expense Termination Right has arisen.

 “Applicable Cushion Amount US Index Factor” shall mean, as of any date within 2010, 1.0000, and, as of any
date within a particular calendar year after 2010, the sum of (a) one (1), plus or minus (as applicable) (b) the percentage increase or decrease (as applicable and rounded to the nearest one hundredth (1/100) of a percent) in the
annual average (as described in the definition of the “Applicable Index”) of the US Index for the full calendar year that is one (1) year prior to the calendar year that includes such date in relation to the annual average of the US
Index for 2009. For example, if the annual average of the US Index for 2010 is 105.111 and the annual average of the US Index for 2009 is 100.000, the Applicable Cushion Amount US Index Factor for any date within 2011 or for the year 2011 would be
equal to 1.0511 (1 + (105.111 divided by 100.000 = 1.0511, which represents a 5.11% increase (rounded to the nearest one hundredth (1/100) of a percent)) = 1 + 0.0511 = 1.0511). 

“Applicable Facility Translation Rate” shall mean (a) as to an Existing Facility, the rate for translating US
Dollars into Canadian Dollars that is applicable to such Existing Facility as set forth on Exhibit F attached hereto and made a part hereof and (b) as to any New Facility, the Applicable Translation Rate as of the date that the New
Management Agreement relating to such New Facility is executed and delivered by the parties thereto. 
 “Applicable
Index” shall mean (a) relative to any Facility located in Canada, the Canadian Index, and (b) relative to any Facility located in the United States, the US Index. In any case where this Agreement provides for the calculation of a
year-over-year percentage increase or decrease in the Applicable Index from a specified calendar year to a different calendar year, except as otherwise expressly specified, such calculation shall be made by comparing the annual average of the
Applicable Index for the applicable calendar years (for example, the year-over-year percentage increase in the Applicable Index from 2009 to 2010 would be calculated by comparing the annual average of the Applicable Index for 2009 to the annual
average of the Applicable Index for 2010). An Applicable Index’s annual average for a given year is the annual average for such Applicable Index as stated in the Applicable Index or, if no annual average is stated, the mathematical average of
the Applicable Index for all months of such year. 
 “Applicable Local Currency” shall mean, relative to a
particular Facility, Canadian Dollars (if such Facility is located in Canada) or US Dollars (if such Facility is located in the United States). 
 “Applicable Translation Rate” shall mean a rate for translating Canadian Dollars into US Dollars, and US Dollars into Canadian Dollars, based upon the average exchange rate quoted in
The Wall Street Journal (or, if it ceases to quote such exchange rate, another exchange rate source that is mutually agreed upon by SSLI and Ventas SSL, each acting reasonably) as the rate for exchanging Canadian Dollars for US Dollars, and
for exchanging US Dollars for Canadian Dollars, during the one (1) year period ending on (a) the last Business Day of the month, calendar quarter or calendar year as to which any such currency translation is to be made (e.g. the last
Business Day of each calendar year, in the case of currency translations under Section 4 or Section 6.1(i) hereof) or (b) if subsection (a) above is not applicable, the last Business Day preceding the date as of
which any such currency translation is to be made. 

  
 6 

 “Approved Budgets” shall mean the budgets approved by the applicable Owners
for the operation of particular Facilities as further described in the applicable Management Agreements. 
 “Arm’s
Length” shall have the meaning ascribed thereto in Exhibit D attached hereto and made a part hereof. 

“Assisted Living” shall mean housing facilities for seniors who seek housing with supporting care and services including
assistance with activities of daily living (such as bathing, eating, dressing and monitoring medications), Alzheimer’s care and other services such as housekeeping, meals and activities. 

“Base Management Fee” shall mean the Base Management Fees referenced in the Management Agreements, as adjusted pursuant
to, and subject to the terms of, Section 5 hereof. 
 “BMFEANOI Amount” shall have the following
meaning: (a) subject to subsections (c) and (d) below, for 2010 and 2011, the BMFEANOI Amount for a particular Facility (including the Existing Pre-Stabilized Facilities) shall mean the respective targets for such Facility for such
calendar years that are set forth on Exhibit C attached hereto and made a part hereof, (b) subject to subsections (c) and (d) below, for 2012 and each subsequent year, the respective annual BMFEANOI Amounts for each
Facility as of the end of the preceding year shall be adjusted by one hundred percent (100%) of the CPI Adjustment for the year that is two (2) years prior to such 2012 or such subsequent year (for example, the BMFEANOI Amount for 2012
would be calculated by increasing the BMFEANOI Amount as of the end of 2011 by one hundred percent (100%) of the CPI Adjustment for 2010), (c) notwithstanding subsections (a) and (b) above but subject to subsection
(d) below, the “BMFEANOI Amount” for any New Stabilized Facility and/or New Pre-Stabilized Facility that becomes a Facility on or after the Agreement Date shall be equal to the ANOI for any such Facility for the one (1) year
period (the “New Stabilized/Pre-Stabilized Facility Period”) commencing on the Expected Stabilization Date for such Facility, and the first CPI Adjustment of the BMFEANOI Amount relative to any such Facility pursuant to subsection
(b) above shall occur at the beginning of the calendar year that follows the calendar year that includes the last day of the applicable New Stabilized/Pre-Stabilized Facility Period for such Facility (for example, if the New
Stabilized/Pre-Stabilized Facility Period relative to a particular New Facility ended on June 30, 2013 and the BMFEANOI Amount for such New Facility as of July 1, 2013 equaled $X, the first CPI Adjustment of such BMFEANOI Amount would
occur at the beginning of 2014, and such BMFEANOI Amount of $X would increase on January 1, 2014 by one hundred percent (100%) of the CPI Adjustment for the year that is two (2) years prior to 2014 (i.e., the BMFEANOI Amount of $X for
2013 would be increased by one hundred percent (100%) of the CPI Adjustment for 2012)), and (d) effective upon the Facility Cessation Date for a Transferred Facility(ies) (as such terms are defined in Section 7 hereof), the
BMFEANOI Amount for each Transferred Facility and Continuing Facility (as such terms are defined in Section 7 hereof) shall be adjusted as provided in Section 7.2.3 hereof, and, upon any such adjustment relative to a particular
Facility, such adjusted BMFEANOI Amount shall, subject to the terms of Section 7.2.3(c) hereof and to further adjustment in the event another Facility Cessation Date arises after the subject Facility Cessation Date, (i) if such
adjustment occurs during 2010, be the BMFEANOI Amount for such Facility for 2010 and 2011 and for purposes of subsections (a) and (b) above, (ii) if such adjustment occurs during 2011, be the BMFEANOI Amount for such Facility for 2011
and for purposes of subsections (a) and (b)

  
 7 

 
above, and (iii) if such adjustment occurs during 2012 or any subsequent year, be the BMFEANOI Amount for such Facility for such year and for purposes of subsection (b) above.

 “Business Day” shall mean any day on which the New York Stock Exchange is open for some
or all of such day. Notwithstanding the foregoing, however, for purposes of determining the date by which any reports required under any Management Agreement must be delivered to the owner under such Management Agreement, where the term
“Business Day” is used in determining the date by which the applicable report(s) must be delivered (e.g.,
8th Business Day Reports (as defined in the Management
Agreements)), the term “Business Day” shall not include any day upon which all offices of the federal government located in Washington, D.C. are closed, it being understood that the term “Business Day” shall exclude any such
day(s) only in those instances, and only for the purposes, described in this sentence. 
 “Canadian Index”
shall mean the All-Items Consumer Price Index (not seasonally adjusted) for Canada or the equivalent thereof, or any comparable successor index thereof, published from time to time by Statistics Canada or any other equivalent or duly authorized
department of the Government of Canada (“Statistics Canada”). If the Statistics Canada changes the base reference period for the Canadian Index from 1992 = 100, the consumer price index adjustment shall be determined with the use of
such conversion formula or table as may be published by Statistics Canada. If Statistics Canada otherwise substantially revises, or ceases publication of, the Canadian Index, then a substitute index for determining consumer price index adjustments,
issued by Statistics Canada or by a reliable governmental or other nonpartisan publication, shall be reasonably selected by Ventas SSL and Manager. 
 “CAN Manager” shall have the meaning ascribed thereto in the preamble to this Agreement. 
 “ceased to be managed under a Management Agreement” or words to such effect shall mean, with respect to a particular Facility, that the Management Agreement for such Facility has expired
or been terminated or, in the case of a Transferred Facility, that the Management Agreement for such Transferred Facility has been assumed by the applicable Successor Owner/Lessee pursuant to the terms of Section 7 hereof. 

“Certificate of Occupancy” shall mean a certificate or other permit or evidence of approval provided by an appropriate
governmental body or agency in respect of a Facility, including a temporary or conditional certificate or permit, that permits residents to occupy or reside in all residential areas of that Facility and includes receipt of necessary seniors care
licenses, if and to the extent required by Legal Requirements. 
 “Certificate of Occupancy Date” shall mean
the date upon which a Certificate of Occupancy in respect of a Facility shall have been issued. 
 “Code” shall
mean the Internal Revenue Code of 1986, as amended. 
 “Controllable Costs” shall mean all Facility Expenses
other than (a) Impositions (excepting water, sewer or similar fees, rents, rates, charges, excises or levies that vary based on usage), Costs of Insurance (e.g., insurance premiums) and management fees (Base Management

  
 8 

 
Fees and Incentive Management Fees) and (b) costs for non-recurring extraordinary events reasonably approved by Ventas SSL. 

“Costs of Insurance” shall have the meaning ascribed to such term within the definition of “Facility Expenses”
in the Management Agreements. 
 “CPI Adjustment” shall mean, with respect to any particular calendar year and
particular Facility, the year-over-year percentage increase or decrease in the Applicable Index’s annual average (as described in the definition of the “Applicable Index”) from the prior calendar year to the calendar year in question,
rounded, in the case of each calculation described below relating thereto, to the nearest one hundredth (1/100) of a percentage or Used Index (as defined below) (except if such Used Index is also equal to the Applicable Index) or to the nearest
one thousandth (1/1000) (in the case of a Used Index that is also equal to the Applicable Index), as applicable, and not to exceed a 4% increase or decrease; provided, however, that any increase or decrease in the Applicable Index’s
annual average that is excluded on account of such 4% cap shall be taken into account, as illustrated below, in determining the CPI Adjustment for future years. For example, if the Applicable Index’s annual average for 2010 was 215.000, the
Applicable Index’s annual average for 2011 was 236.500 (10% increase over 2010), the Applicable Index’s annual average for 2012 was 241.230 (2% increase over 2011), the Applicable Index’s annual average for 2013 was 241.230 (0%
increase over 2012), the Applicable Index’s annual average for 2014 was 229.169 (5% decrease from 2013) and the Applicable Index’s annual average for 2015 was 236.044 (3% increase over 2014): 

(a) the CPI Adjustment with respect to 2011 would be a 4% increase, i.e. treated as if the Applicable Index’s annual average had only
increased to 223.60 (the value of the Applicable Index that is actually used to determine the CPI Adjustment (e.g., because of the 4% cap) is referred to as the “Used Index”) because of the operation of the 4% cap, and such 223.60
would be the value of the Used Index for 2011 with regards to calculating the 2012 year-over-year percentage increase or decrease in the Applicable Index’s annual average; 
 (b) the CPI Adjustment with respect to 2012 would be a 4% increase, i.e. treated as if the Applicable Index’s annual average had only increased to 232.54 (the maximum 4% increase over the Used Index
for 2011), and such 232.54 would be the value of the Used Index for 2012; 
 (c) the CPI Adjustment with respect to 2013 would be
a 3.74% increase, i.e. the actual percentage increase from 232.54 (the basis of the prior year’s increase, which, because the CPI Adjustment for 2012 was affected by the 4% cap, was also equal to the Used Index for 2012) to 241.230 (the
Applicable Index’s annual average for 2012) which increase for 2013 was less than the 4% cap, and the Used Index would be 241.23 for 2013; 
 (d) the CPI Adjustment with respect to 2014 would be a 4% decrease, i.e. treated as if the Applicable Index’s annual average had only decreased to 231.58 (the maximum 4% decrease from the Used Index
for 2013), and such 231.58 would be the value of the Used Index for 2014; and 

  
 9 

 (e) the CPI Adjustment with respect to 2015 would be a 1.93% increase, i.e. treated as if
the Applicable Index’s annual average had only increased from 231.58 to 236.044 (the increase over the Used Index for 2014), and 236.04 would be the value of the Used Index (potentially relevant to future years) for 2015. 

“Expected ANOI” shall have the following meaning: (a) subject to subsection (c) below, for 2010 and 2011, the
Expected ANOI for a particular Facility (including the Existing Pre-Stabilized Facilities) shall mean the respective targets for such Facility for such calendar years that are set forth on Exhibit C attached hereto and made a part
hereof, (b) subject to subsection (c) below, for 2012 and each subsequent year, the respective annual Expected ANOI target amounts shown on such Exhibit C for each Facility for the preceding year shall be adjusted by one
hundred percent (100%) of the CPI Adjustment for the year that is two (2) years prior to such 2012 or such subsequent year (for example, Expected ANOI for 2012 would be calculated by increasing the Expected ANOI for 2011 by one hundred
percent (100%) of the CPI Adjustment for 2010), and (c) notwithstanding subsections (a) and (b) above, the “Expected ANOI” for any New Stabilized Facility and/or New Pre-Stabilized Facility that becomes a Facility on or
after the Agreement Date shall be equal to the ANOI for any such Facility for the one (1) year period (the “New Stabilized/Pre-Stabilized Facility Period”) commencing on the Expected Stabilization Date for such Facility, and
the first CPI Adjustment of the Expected ANOI relative to any such Facility pursuant to subsection (b) above shall occur at the beginning of the calendar year that follows the calendar year that includes the last day of the applicable New
Stabilized/Pre-Stabilized Facility Period for such Facility (for example, if the New Stabilized/Pre-Stabilized Facility Period relative to a particular New Facility ended on June 30, 2013 and the Expected ANOI for such New Facility as of
July 1, 2013 equaled $X, the first CPI Adjustment of such Expected ANOI would occur at the beginning of 2014, and such Expected ANOI of $X would increase on January 1, 2014 by one hundred percent (100%) of the CPI Adjustment for the
year that is two (2) years prior to 2014 (i.e., the Expected ANOI of $X for 2013 would be increased by one hundred percent (100%) of the CPI Adjustment for 2012)). 

“Expected Stabilization Date” shall mean the first (1st) day of the month following the earlier of (a) the date by
which a Facility is scheduled to achieve initial Stabilization as set forth in the Approved Budget for such Facility or (b) the date by which actual Stabilization is achieved for such Facility; provided, however, that, in the case of any
Existing Pre-Stabilized Facility, the Expected Stabilization Date shall be deemed to be January 1, 2011 if the Expected Stabilization Date, as determined above, has not occurred by such date with respect to any such Existing Pre-Stabilized
Facility. 
 “Facilities” shall have the meaning ascribed thereto in Recital D, but subject to the terms of
Section 7 hereof. 
 “Facility Expenses” shall have the meaning ascribed to such term in the
Management Agreements. 
 “FF&E Reserve” shall have the meaning ascribed to such term in the Management
Agreements. 
 “Force Majeure” shall have the meaning ascribed to such term in the Management Agreements.

  
 10 

 “GAAP” shall mean United States generally accepted accounting principles as
promulgated by the Financial Accounting Standards Board (“FASB”), and such other accounting standards as may be required by the United States Securities and Exchange Commission or FASB. 

“Gross Revenues” shall have the meaning ascribed to such term in the Management Agreements; provided, however,
that “Gross Revenues” shall not include the amount of any Property Performance Cure payment, Facility Expense Overage Cure payment or Aggregate Expense Overage Cure payment or any portion thereof that, as provided in Section 3
hereof, is deemed to have been received with respect to any Facility for any period. 
 “Impositions” shall
have the meaning ascribed to such term in Section 5.7 of the Management Agreements. 
 “Incentive Fee
Target” shall have the following meaning: (a) subject to subsections (c) and (d) below, for 2010 and 2011, the Incentive Fee Target for a particular Facility (including the Existing Pre-Stabilized Facilities) shall mean the
respective targets for such Facility for such calendar years that are set forth on Exhibit C attached hereto and made a part hereof, (b) subject to subsections (c) and (d) below, for 2012 and each subsequent year, the
“Incentive Fee Target” for a particular Facility for a particular calendar year shall mean the Incentive Fee Target for such Facility as of the end of the immediately preceding calendar year, increased by one hundred percent (100%) of
the year-over-year percentage increase in the Applicable Index (i.e. not less than zero; any year-over-year percentage decrease in the Applicable Index shall be treated as if the Applicable Index had remained unchanged) for the calendar year that is
two (2) years prior to the calendar year for which the Incentive Fee Target is being established over the immediately preceding calendar year (e.g., the Incentive Fee Target for a particular Facility for 2012 would be the Incentive Fee Target
for such Facility as of the end of 2011, increased by 100% of the year-over-year percentage increase in the Applicable Index from 2009 to 2010), (c) notwithstanding subsections (a) and (b) above but subject to subsection
(d) below, the “Incentive Fee Target” for any New Stabilized Facility and/or New Pre-Stabilized Facility that becomes a Facility on or after the Agreement Date shall be equal to the ANOI for any such Facility for the New
Stabilized/Pre-Stabilized Facility Period that is applicable to such Facility, and the first year-over-year percentage increase of the Incentive Fee Target relative to any such Facility pursuant to subsection (b) above shall occur at the
beginning of the calendar year that follows the calendar year that includes the last day of the applicable New Stabilized/Pre-Stabilized Facility Period for such Facility (for example, if the New Stabilized/Pre-Stabilized Facility Period relative to
a particular New Facility ended on June 30, 2013 and the Incentive Fee Target for such New Facility as of July 1, 2013 equaled $X, the first year-over-year percentage increase of such Incentive Fee Target would occur at the beginning of
2014, and such Incentive Fee Target of $X would increase on January 1, 2014 by one hundred percent (100%) of the year-over-year percentage increase in the Applicable Index for the year that is two (2) years prior to 2014 (i.e., the
Incentive Fee Target of $X for 2013 would be increased by one hundred percent (100%) of the year-over-year percentage increase in the Applicable Index from 2011 to 2012)), and (d) effective upon the Facility Cessation Date for a
Transferred Facility(ies) (as such terms are defined in Section 7 hereof), the Incentive Fee Target for each Transferred Facility and Continuing Facility (as such terms are defined in Section 7 hereof) shall be adjusted as
provided in Section 7.2.3 hereof, and, upon any such adjustment relative to a particular Facility, such 

  
 11 

 
adjusted Incentive Fee Target shall, subject to the terms of Section 7.2.3(c) hereof and to further adjustment in the event another Facility Cessation Date arises after the subject
Facility Cessation Date, (i) if such adjustment occurs during 2010, be the Incentive Fee Target for such Facility for 2010 and 2011 and for purposes of subsections (a) and (b) above, (ii) if such adjustment occurs during 2011, be
the Incentive Fee Target for such Facility for 2011 and for purposes of subsections (a) and (b) above, and (iii) if such adjustment occurs during 2012 or any subsequent year, be the Incentive Fee Target for such Facility for such year
and for purposes of subsection (b) above. Any year-over-year percentage increase referenced herein shall be rounded to the nearest one hundredth (1/100) of a percent. 

“Incentive Management Fee” shall have the meaning ascribed to such term in Section 6.1 hereof. 

“Independent Living” shall mean senior housing facilities designed to meet the needs of seniors who choose to live in an
environment surrounded by their peers where they receive services such as housekeeping, meals and activities, but are not reliant on assistance with activities of daily living such as bathing, eating and dressing (although some residents may
contract out for those services). 
 “January 14, 2007 Letter Agreement” shall have the meaning ascribed to
such term in Recital A. 
 “Joint Venture Agreement” shall mean any limited liability company operating
agreement, partnership agreement, joint venture agreement or other similar agreement governing the rights of the owners of equity interests in any limited liability company, partnership or other joint venture, the Seller Interests in which have been
sold by SSLI, US Manager, CAN Manager or any of their Affiliates to Affiliates of Ventas SSL pursuant to the Purchase and Sale Agreement. 
 “Lease Up Period” shall mean, relative to any Facility, the period from the Certificate of Occupancy Date for such Facility to the Expected Stabilization Date for such Facility.

 “Legal Requirements” shall have the meaning ascribed to such term in the Management Agreements. 

“Management Agreements” shall have the meaning ascribed to such term in Recital D and includes any amendments,
supplements, restatements or replacements thereof from time to time, but subject to the terms of Section 7 hereof. 

“Management Fee” shall mean the Base Management Fee and Incentive Management Fee, subject to adjustment as provided in,
and to the terms of, Section 5 and Section 6 hereof. 
 “Manager” shall mean
collectively US Manager and CAN Manager. 
 “Manager’s Standards” shall have the meaning ascribed to such
term in the Management Agreements. 

  
 12 

 “Net Operating Income” shall mean Gross Revenues minus Facility Expenses;
provided, however, that, for any given calculation of Net Operating Income, the amount of any Bad Debt (as defined in the applicable Management Agreement) that has both increased the Facility Expenses in such calculation and reduced the Gross
Revenues in such calculation shall be added to Net Operating Income so as to avoid double-counting of such Bad Debt. 

“Obligations” shall mean the obligations and covenants to perform of any Manager hereunder or under a Management
Agreement. 
 “Owners” shall mean, collectively, Existing SF Owners, Existing PSF Owners, New SF Owners and New
PSF Owners, and “Owner” means any one of them. 
 “Person” shall mean an individual, sole
proprietorship, partnership, limited partnership, corporation, limited liability company, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, joint venture or co-ownership, and a natural person
in his or her capacity as a trustee, executor, administrator or other legal representative. 
 “Pre-Stabilized
Facilities” shall mean, collectively, Existing Pre-Stabilized Facilities (as described, as of the Agreement Date, on Exhibit B hereto) and New Pre-Stabilized Facilities, and “Pre-Stabilized Facility” means any one of them.

 “PSA Date” shall mean October 1, 2010. 

“Purchase and Sale Agreement” shall mean, collectively, that certain Purchase and Sale Agreement dated October 1,
2010 by and among Sunrise Senior Living Investments, Inc., SZR US Investments, Inc., Ventas REIT US Holdings, Inc. and Ventas, Inc. and that certain Purchase and Sale Agreement dated October 1, 2010 by and between Sunrise North Senior Living
Ltd. and Ventas SSL Ontario II, Inc., each as heretofore amended, supplemented or restated. 
 “REIT Compliance
Requirements” shall have the meaning ascribed to such term in Section 14 thereof. 
 “Resident
Occupancy” shall have the meaning ascribed to such term in the Management Agreements. 
 “Resident Occupancy
Rate” shall have the meaning ascribed to such term in the Management Agreements. 
 “Seller Interests”
shall have the same meaning in this Agreement as in the Purchase and Sale Agreement. 
 “Senior Living
Facility” shall mean a senior housing facility, and, for certainty, without limitation, includes Skilled Nursing, Assisted Living and Independent Living facilities. 
 “Shared Expenses” shall have the meaning ascribed to such term in the Management Agreements. 

  
 13 

 “Skilled Nursing” shall mean senior housing facilities that meet the needs
of seniors who require a substantial level of skilled nursing services or who are receiving rehabilitative services following an adverse event such as a broken hip or stroke. 
 “Stabilization” shall have the meaning ascribed to such term in the Management Agreements. 
 “Stabilized Facilities” shall mean, collectively, Existing Stabilized Facilities and New Stabilized Facilities, and “Stabilized Facility” shall mean any one of them.

 “Strategic Alliance Agreement” shall mean that certain Strategic Alliance Agreement dated December 23,
2004 by and between SSLI and Sunrise Senior Living Real Estate Investment Trust, as the provisions of such agreement were terminated (with certain limited exceptions) pursuant to the terms of the January 14, 2007 Letter Agreement. 

“Term” shall mean the term of each Management Agreement, as set forth in such Management Agreement, unless amended by
agreement of the applicable parties or sooner terminated pursuant to the terms of the applicable Management Agreement or this Agreement and, for greater certainty and without limitation of Section 7 hereof, this Agreement shall be
automatically amended so as to no longer apply to any Management Agreement that is no longer in effect or that has been terminated. 
 “Test Period” shall have the meaning ascribed thereto in Section 3.1. 
 “Third Party” shall mean a Person that is at Arm’s Length with each Owner, as well as to each party hereto. 
 “Treasury Regulations” shall mean the regulations promulgated under the Code, as amended from time to time (including any successor regulations). 

“US Index” shall mean the All-Items Consumer Price Index for All Urban Consumers, U.S. City Average (not seasonally
adjusted) (1982-84 = 100), published by the Bureau of Labor Statistics, U.S. Department of Labor or any successor thereto (the “BLS”), or such other renamed index. If the BLS changes the base reference period for the US Index from
1982-84 = 100, the consumer price index adjustment shall be determined with the use of such conversion formula or table as may be published by the BLS. If the BLS otherwise substantially revises, or ceases publication of, the US Index, then a
substitute index for determining consumer price index adjustments, issued by the BLS or by a reliable governmental or other nonpartisan publication, shall be reasonably selected by Ventas SSL and Manager. 

“US Manager” shall have the meaning ascribed thereto in the preamble to this Agreement. 

“Ventas SSL Parties” shall mean, collectively, Ventas SSL and any other Affiliate of Ventas SSL that may be a party to a
Management Agreement, and “applicable Ventas SSL Party” means any Ventas SSL Party that controls the Owner of the applicable Facility. 

  
 14 

 1.2 Additional Defined Terms. As used herein the following terms shall have
the meanings set forth in the preamble, recital or section indicated below: 
  

			
	 $10B HCREIT
	  	2.3
	 15% Calculation
	  	6.1(iii)
	 2008 Letter Agreement
	  	Recital A
	 2009 Letter Agreement
	  	Recital A
	 7% Capped Calculation
	  	6.1(iv)
	 AAA
	  	15.1(a)
	 Accrued But Not Yet Due Fees and Expenses Reimbursements
	  	18.3
	 Affected Management Agreement
	  	7.1(d)
	 Aggregate Cure Limit
	  	3.5(a)
	 Aggregate Expense Overage
	  	3.4
	 Aggregate Expense Overage Amount
	  	3.4
	 Aggregate Expense Overage Cure
	  	3.4
	 Aggregate Expense Termination Right
	  	3.4
	 Agreement
	  	Preamble
	 Agreement Date
	  	Preamble
	 All Facilities Actual Percentage
	  	7.2.3(b)
	 ANOI Testing Date
	  	3.1.1
	 Applicable BMF Percentage
	  	5.2
	 Applicable Lenders
	  	18.4
	 Applicable Period
	  	7.2.3(b)
	 Arbitrable Dispute
	  	15.1(a)
	 Arbitration Notice
	  	15.1(a)
	 Beneficiaries
	  	16.1
	 BMF Continuing Facility Adjustment Factor
	  	7.2.3(a)
	 BMF/IMF Continuing Facility Percentage
	  	7.2.3(a)
	 BMF Transferred Facility Adjustment Factor
	  	7.2.3(a)
	 BMF/IMF Transferred Facility Percentage
	  	7.2.3(a)
	 Canadian Budget Percentage
	  	3.4.1(a)
	 Continuing Facilities
	  	7.2.1(a)
	 Continuing Facility Actual Percentage
	  	7.2.3(b)
	 Event of Default
	  	15.1
	 Existing Facilities
	  	Recital B
	 Existing Immediate or Unmatured Event of Default
	  	18.5(a)
	 Existing Loan Document
	  	18.4
	 Existing Management Agreement
	  	Recital C
	 Existing Master Agreement
	  	Recital A
	 Existing Owners
	  	Recital B
	 Existing Ventas/Sunrise Agreements
	  	18.2
	 Expense Termination Right
	  	3.4
	 Facility Cessation Date
	  	7.2
	 Facility Cure Limit
	  	3.2.2
	 Facility Expense Overage Cure
	  	3.3

  
 15 

			
	 Facility Expense Termination Right
	  	3.3
	 Facility Performance Cure Amount
	  	3.4(ii)
	 IMF Continuing Facility Adjustment Factor
	  	7.2.3(a)
	 IMF Transferred Facility Adjustment Factor
	  	7.2.3(a)
	 Letter Agreements
	  	Recital A
	 Management Group
	  	18.3
	 Monetary Failure Notice
	  	15.1(a)
	 New Facilities
	  	Recital D
	 New Management Agreements
	  	Recital D
	 New PSF Owners
	  	Recital E
	 New Pre-Stabilized Facility
	  	Recital E
	 New SF Owners
	  	Recital E
	 New Stabilized Facility
	  	Recital E
	 Other Section 3.2.3 Termination Rights
	  	3.2.3(iii)
	 Payment/Credit-Back
	  	15.1(a)
	 Property Performance Cure
	  	3.2
	 Property Performance Termination Right
	  	3.1
	 REIT
	  	14
	 Related Agreement SSLI Event of Default/ Termination Right
	  	18.4
	 Related Agreements
	  	18.3
	 Released Matters
	  	18.4
	 Residents
	  	2.1(b)
	 Restated Management Agreement
	  	Recital C
	 SEC
	  	18.5(c)
	 Section 2.3 Person
	  	2.3
	 Section 3.2.3 Month
	  	3.2.3
	 Section 3.2.3 Period
	  	3.2.3(i)
	 Section 3.2.3 Termination Right
	  	3.2.3
	 Section 3.2.3 Waiver
	  	3.2.3
	 Severed Master Agreement
	  	7.2.2(a)
	 Shared Expenses Continuing Facilities Factor
	  	7.2.3(b)
	 Shared Expenses Percentage
	  	4
	 Shared Expenses Transferred Facilities Factor
	  	7.2.3(b)
	 Significant Actual Prejudice
	  	18.5(a)
	 SOX
	  	2.5
	 SSLI
	  	Preamble
	 Successor Owner/Lessee
	  	7.1(b)
	 Successor Parent Owner/Lessee
	  	7.1(c)
	 Sunrise Parties
	  	2.3
	 Terminated Facility
	  	5.5
	 Terminated Management Agreement
	  	5.5
	 Termination Effective Date
	  	5.5
	 Total Facility Overage Payments Amount
	  	3.4(i)
	 Total Performance Cure Amount
	  	3.4(ii)
	 Trailing Twelve Month Period
	  	7.2.3(a)
	 Transferred Facility
	  	7.1(a)

  
 16 

			
	 Transferred Facilities
	  	7.1(c)
	 Transferred Facilities Actual Percentage
	  	7.2.3(b)
	 Translated Annual Incentive Management Fee
	  	6.1(iv)
	 Unadjusted Facility
	  	7.2.3(a)
	 US Budget Percentage
	  	3.4.1(b)
	 Ventas, Inc.
	  	Recital A
	 Ventas SSL
	  	Preamble
	 Ventas SSL’s Management Group
	  	18.4

 1.3 Rules of
Construction. Unless the context otherwise requires: 
 1.3.1. A capitalized term shall have the
meaning assigned to it; 
 1.3.2. References to Articles, Sections and Exhibits shall refer
to articles, sections and exhibits of this Agreement, unless otherwise specified; 
 1.3.3. This Agreement
shall be construed without regard to any presumption or other rule requiring construction against the party that drafted and caused this Agreement to be drafted; 

1.3.4. References to “including” in this Agreement shall mean “including, without limitation,”
whether or not so specified; and 
 1.3.5. The word “extent” in the phrase “to the
extent” shall mean the degree to which a subject or other theory extends and such phrase shall not mean “if.” 

1.4 Certain Provisions Regarding Currency Matters. Certain payments required under this Agreement are designated as
payments to be made in the Applicable Local Currency, and other payments required under this Agreement are designated as payments to be made in Canadian Dollars or US Dollars. In the absence of any contrary provisions in this Agreement, any payments
that are required under this Agreement and that relate solely to a particular Facility and to the ANOI, Expected ANOI, BMFEANOI Amount, Incentive Fee Target, Gross Revenues, Base Management Fee or Facility Expenses applicable to such Facility shall
be made in the Applicable Local Currency and all other payments required under this Agreement shall be made in US Dollars. Certain calculations and determinations are required under this Agreement that involve the performance of mathematical
functions with respect to the combined amounts of the respective ANOIs, Expected ANOIs, BMFEANOI Amounts, Incentive Fee Targets, Net Operating Incomes, Gross Revenues, Facility Expenses and/or Shared Expenses for multiple Facilities, or other
combined amounts for multiple Facilities, and, in the case of some of such calculations and determinations, some of the amounts to be combined and as to which mathematical functions are to be performed have been initially determined or accounted for
in Canadian Dollars and others have been initially determined or accounted for in US Dollars. In such cases, if this Agreement expressly provides that such calculations and determinations are to be made after first applying the Applicable
Translation Rate or the Applicable Facility Translation Rate to certain of such amounts, such instruction shall be followed. 

  
 17 

	2.	Performance; Prohibited Investments; Certifications; SOX/SAS 70 

 2.1 Goals. The joint goals of the parties hereto are to: 
 (a)
Establish and maintain programs to promote the most effective and profitable utilization of each Facility’s services; 
 (b)
Provide quality services to individuals residing at each Facility (the “Residents”) in a manner complying with the form of resident agreement in use at such Facility, the Manager’s Standards and the applicable Approved Budget;

 (c) Establish appropriate marketing programs and maintain a public image of excellence and first-class operation for each
Facility, all in accordance with this Agreement, the applicable Management Agreement, the Manager’s Standards and the applicable Approved Budget; 
 (d) Maintain well trained, adequately supervised, quality staff, in sufficient number, at each Facility in a manner consistent with this Agreement, the applicable Management Agreement, the Manager’s
Standards and the applicable Approved Budget; 
 (e) Operate each Facility prudently, on a sound financial basis and in a manner
consistent with this Agreement, the applicable Management Agreement, the Manager’s Standards and the applicable Approved Budget; 
 (f) Establish and maintain a sound financial accounting system for each Facility; 

(g) Institute and maintain adequate internal fiscal controls through proper budgeting, accounting procedures, and timely financial
reporting in a manner consistent with this Agreement, the applicable Management Agreement and the applicable Approved Budget; 

(h) Prevent loss of Gross Revenues for each Facility and institute and maintain sound billing and collection procedures and methods;

 (i) Maintain and increase Gross Revenues and Net Operating Income at each Facility; 

(j) Conform operations at each Facility to, and comply with, all applicable Legal Requirements, this Agreement and the Manager’s
Standards, including those pertaining to licensing, and take all steps necessary to ensure that all licenses and certificates necessary for the ownership, use and operation of each Facility as a Senior Living Facility are maintained at all times,
without interruption; and 
 (k) Take such other steps as are necessary to provide high quality care to the Residents, consistent
with this Agreement, the Manager’s Standards and as 

  
 18 

 
otherwise reasonably requested by Owner, all consistent with the applicable Approved Budget. 
 2.2 Standard of Care. SSLI shall cause each Manager to discharge its duties under each Management Agreement in good faith, and to exercise, with respect to all services provided by either
Manager under or pursuant to this Agreement or any Management Agreement, a standard of care, skill, prudence and diligence under the circumstances then prevailing as would be expected of a prudent manager who has a high level of experience and
expertise with respect to such matters and at or above the Manager’s Standards and in no event with less care, skill, prudence or diligence as either Manager would customarily utilize in the conduct of its business, and as is necessary for the
maintenance of any license or permit required for the applicable Facility and compliance with all Legal Requirements and the Manager’s Standards. 
 2.3 Prohibited Investment. Without the prior written consent of Ventas SSL or Ventas, Inc., neither SSLI nor US Manager nor CAN Manager nor any of their respective Affiliates (each a
“Sunrise Party” and collectively the “Sunrise Parties”) shall become a party to, or participate in, or directly or indirectly consent to or approve, any transaction or arrangement involving the direct or indirect
investment in any Sunrise Party by any healthcare real estate investment trust having undepreciated total assets of more than Ten Billion US Dollars ($10,000,000,000.00) as of the Agreement Date (herein, a “$10B HCREIT”) or by any
Person (herein, a “Section 2.3 Person”) as to which, at the time of any such transaction or the commencement of any such arrangement, fifty percent (50%) or more of the consolidated gross revenues or consolidated net
operating income of such Person and its consolidated Affiliates (in each case, as determined in accordance with GAAP and for the current fiscal year and/or the fiscal year preceding such current fiscal year and/or the fiscal year following such
current fiscal year of such Person and its consolidated Affiliates) has historically been generated or received, or on a pro forma basis (taking into account pending, announced and completed transactions) is expected to be generated or received, in
either case directly or indirectly, from facilities or properties owned or controlled by a $10B HCREIT and/or its Affiliates. The foregoing shall not be deemed to prohibit the following transactions to the extent they are entered into by a Sunrise
Party(ies) in the ordinary course of its (their) business (and, in such regard, it is agreed by the parties that the public filing by any Sunrise Party(ies) with the SEC (as defined in Section 18.5(c) hereof) of a Form 8-K report
relative to a particular transaction shall not, by itself, mean that such transaction is outside of the ordinary course of its (their) business): 
 (a) Sale(s) of real property or other real estate assets, or leasehold or joint venture interests held by the Sunrise Parties in such assets, or interests of any Sunrise Party(ies) as a manager under a
management agreement(s) relating to such assets, provided that any such interests do not include, directly or indirectly, corporate or other voting rights in, or other rights to participate in the management of or otherwise control, any Sunrise
Party (except as the parenthetical clause in subsection (b) below permits); 
 (b) Entry into a joint venture agreement or
management agreement with a $10B HCREIT or Section 2.3 Person, provided that such joint venture agreement or management agreement relates only to a particular property or properties and does not include, directly or indirectly, corporate or
other voting rights in, or other rights to participate in the management of or otherwise control, any Sunrise Party 

  
 19 

 
(other than, in the case of a joint venture agreement, any such voting rights in, or any such rights to participate in the management of or otherwise control, the joint venture that is governed
by such joint venture agreement); or 
 (c) Obtaining customary non-recourse mortgage financing from, or entering into a lease
with, a $10B HCREIT or Section 2.3 Person, provided that (i) such financing is subject only to commercially customary non-recourse carveouts, (ii) (x) such lease is non-recourse to any assets of any Sunrise Party (other than the
interest of the Sunrise Party that is the tenant under such lease in the cash flow from, and in the leasehold interest and other rights created by such lease in, the real property that is the subject of such lease and subject to non-recourse
carveouts that are similar in scope and impact to the commercially customary non-recourse carveouts for mortgage financings permitted under this subsection (c)) and (y) a default by a Sunrise Party under such lease and/or any other lease
between any Sunrise Party, as tenant, and such $10B HCREIT and its Affiliates or such Section 2.3 Person and its Affiliates, as applicable, as landlord, does not result in a default under any material liability or obligation of SSLI and its
consolidated Affiliates and (iii) such financing and such lease do not include, directly or indirectly, corporate or other voting rights in, or other rights to participate in the management of or otherwise control, any Sunrise Party.

 In addition, notwithstanding the foregoing, this Section 2.3 shall cease to apply, and shall be of no further force or effect, at
such time as SSLI, US Manager and/or CAN Manager and/or their respective Affiliates cease to manage under a Management Agreement twenty (20) or more Facilities in the aggregate that are owned or controlled by Ventas SSL or its Affiliates.

 2.4 Annual Certifications. On or before February 15 of each calendar year, SSLI shall cause to be executed
and delivered to Ventas SSL a certificate, executed by an executive officer of SSLI, certifying, to the knowledge of SSLI, US Manager and CAN Manager, (a) as to each Facility, the number of Property Performance Termination Rights and Facility
Expense Termination Rights that have arisen with respect to such Facility (i) during the preceding calendar year and (ii) since the Agreement Date, (b) as to each Facility that has ceased to be managed under a Management Agreement
since the Agreement Date, the number of Property Performance Termination Rights and Facility Expense Termination Rights that arose with respect to such Facility (i) during the preceding calendar year and (ii) during the period from the
Agreement Date through the date such Facility ceased to be managed under a Management Agreement, (c) the number of Aggregate Expense Termination Rights that have arisen under this Agreement since the Agreement Date, (d) the aggregate
number of Property Performance Termination Rights and/or Expense Termination Rights that, through the end of the preceding calendar year, have occurred, and count towards the Aggregate Cure Limit, for purposes of Section 3.5(a) hereof,
and (e) as to each Facility, the respective Expected ANOI, BMFEANOI Amount and Incentive Fee Target that are applicable to such Facility for the current calendar year. 
 2.5 SOX; SAS 70. Each of SSLI, US Manager and CAN Manager acknowledges that the financial reports and other information provided by them, under this Agreement or the Management Agreements,
must be included in Ventas, Inc.’s or its Affiliates’ public disclosure documentation in order for Ventas, Inc. or its Affiliates to comply with NYSE public company 

  
 20 

 
and real estate investment trust reporting and certification obligations. Each of SSLI, US Manager and CAN Manager covenants that all such reporting provided by them, under this Agreement or the
Management Agreements, in connection with this Agreement or the Management Agreements shall be in a form that allows Ventas, Inc. and its Affiliates to comply with Ventas, Inc.’s and its Affiliates’ reporting and certification requirements
under all Legal Requirements and shall implement a system to allow Ventas, Inc. and its Affiliates to do control testing pursuant to the certification requirements of the Sarbanes-Oxley Act of 2002 (as amended, supplemented, restated or replaced
from time to time, “SOX”) or any similar or related requirements that may from time to time become Legal Requirements. Ventas SSL and its Affiliates shall have the right to review or audit (and SSLI, US Manager and CAN Manager, upon
request from time to time by Ventas SSL or its Affiliates, shall provide Ventas SSL and its Affiliates with electronic copies of) the books and records with respect to each Facility located at each Facility or at the applicable Manager’s or its
Affiliates’ offices, as applicable. Each of SSLI, US Manager and CAN Manager shall cooperate with Ventas, Inc. and its Affiliates in complying with its and their obligations pursuant to SOX and other Legal Requirements, including promptly
providing or causing its auditors to provide SAS 70 reports upon request by Ventas SSL or its Affiliates (any such SAS 70 reports that are so requested by Ventas SSL or its Affiliates shall be at the expense of Ventas SSL, provided, however,
that, if SSLI, US Manager and/or CAN Manager or their Affiliates provide the same SAS 70 report for the same accounting period to another owner or other owners of facilities managed by SSLI or its Affiliates to be relied upon by such owner(s) in
preparing financial statements of such owner(s), the cost to Ventas SSL of the SAS 70 report provided to it or its Affiliates will be limited to Ventas SSL’s proportionate share of the cost of such SAS 70 report, based upon the number of
facilities managed by SSLI or its Affiliates that are owned, respectively, by Ventas SSL or its Affiliates and by such other owner(s) to whom the SAS 70 report is provided) and assisting Ventas, Inc. and its Affiliates and their internal and
external independent auditors in completing procedures to comply with their obligations under SOX and other Legal Requirements in a timely manner. To facilitate the foregoing, SSLI, US Manager and CAN Manager shall maintain SOX-compliant internal
controls over financial reporting at each Facility to the extent required to accomplish the purposes set forth above. 
  

	3.	Certain Termination Rights 

 3.1 Monthly Facility-Level ANOI Test. Subject to Section 3.1.1 below regarding Pre-Stabilized Facilities that become Stabilized Facilities, as of the end of each calendar month,
commencing with the end of December, 2011 (unless a Manager Event of Default arises under the Management Agreement relating to a particular Stabilized Facility, in which case this Section 3.1 shall commence to apply to any such
Stabilized Facility at the end of the month during which such Manager Event of Default arises), the Expected ANOI for each Stabilized Facility shall be compared to the ANOI for such Stabilized Facility, in each case for the trailing twelve-month
period then ending (such a trailing twelve-month period is herein referred to as a “Test Period”) (in the case of the Expected ANOI, using a weighted average (weighted by the number of months in a given year that are in the subject
Test Period) Expected ANOI for any Test Period that includes parts of two (2) calendar years (e.g., if the Expected ANOI for year 1 is X and for year 2 is 1.03X, in the case of the Expected ANOI for the Test Period ending on June 30 of
year 2, the weighted average Expected ANOI would equal 1.015X ((X x  1/2 year) + (1.03X x  1/2 year) = 0.5X + 0.515X = 1.015X))). If any such comparison for any such Test 

  
 21 

 
Period reflects that the ANOI for a Stabilized Facility is less than seventy-five percent (75%) of the applicable Expected ANOI for such Stabilized Facility (in any case in this Agreement
where a specified amount or measurement is required to be more or less than, or equal to or greater than, or equal to or less than, a specified other amount or measurement, such requirement may not be met through rounding; for example, in this
Section 3.1, if the applicable ANOI was equal to $74,999.00 and the applicable Expected ANOI was equal to $100,000.00, the aforesaid seventy-five percent (75%) test may not be met by rounding 74.999% up to 75%), the Owner of such
Stabilized Facility shall have the right, in its sole discretion and at its option at any time thereafter, to terminate the Management Agreement for such Stabilized Facility by notice to the applicable Manager of such Stabilized Facility (any such
termination right under this Section 3.1, or under Section 3.2 below, is herein referred to as a “Property Performance Termination Right”). 
 3.1.1. Certain Provisions Regarding Pre-Stabilized Facilities and ANOI. In the case of any Pre-Stabilized Facility, (a) the provisions of Section 3.1 above and
Section 3.2 below shall commence to apply thereto, and such Facility shall commence to be included in the determinations with respect to all Stabilized Facilities under such Sections 3.1 and 3.2 and be treated as a Stabilized
Facility for purposes of such Sections 3.1 and 3.2, as of the applicable Expected Stabilization Date (in the case of any Existing Pre-Stabilized Facility) and as of the day following the last day of the applicable New
Stabilized/Pre-Stabilized Facility Period (in the case of any other Pre-Stabilized Facility) (the aforesaid commencement date for a particular Existing Pre-Stabilized Facility or New Pre-Stabilized Facility is herein referred to as the “ANOI
Testing Date”), and (b) for purposes of any calculations of ANOI relative to any Existing Pre-Stabilized Facility as to which such Sections 3.1 and 3.2 have commenced to apply, relative to any month of any Test Period that
precedes the ANOI Testing Date that is applicable to such Existing Pre-Stabilized Facility, such Facility shall be deemed to have an ANOI equal to one-twelfth (1/12) of the target amount of Expected ANOI for such Facility shown on Exhibit
C hereto for the calendar year that includes such month. 
 3.1.2. Certain Provisions Regarding Calculations,
Determinations and Cure Payments. Section 3.1, Section 3.2 and Section 4 hereof contemplate certain monthly calculations and determinations regarding each Facility, Section 3.3 hereof
contemplates certain annual calculations and determinations regarding each Facility, and Section 3.4 hereof contemplates certain annual calculations and determinations regarding the Facilities. In the case of each of such Sections,
(a) on or before the date of the Applicable Payment/Credit-Back Date (as described below), SSLI and Manager shall cause to be delivered to Ventas SSL a worksheet or other document that sets forth, in detail, the calculations, determinations and
data necessary or appropriate to assessing whether, for the particular month or year, as applicable, (i) termination rights have arisen in favor of Ventas SSL or an applicable Owner, (ii) a payment is permitted (and the amount of such
payment that would be necessary) from SSLI or a Manager if it desires to cure such a termination right or (iii) a Shared Expenses credit-back (or reversal adjustment thereof) (in each case as described in Section 4 hereof) is
required (and, if so, the aggregate amount of such credit-back (or reversal adjustment thereof) (expressed in US Dollars) and the Facility-by-Facility amounts of such credits-back (or reversal adjustments thereof) (expressed in US Dollars, in the
case of each Facility located in the United States, and in both US Dollars and Canadian Dollars, in the case of each Facility located in Canada) (and any such worksheet or other document shall be accompanied by supporting documentation that is in
form, substance 

  
 22 

 
and detail satisfactory to Ventas SSL), and (b) on or before the Applicable Payment/Credit-Back Date, if a curable termination right has arisen in favor of Ventas SSL or an applicable Owner
that SSLI or a Manager desires to cure or an obligation to make a Shared Expenses credit-back (or reversal adjustment thereof) has arisen, SSLI or such Manager shall make such cure payment or such Shared Expenses credit-back (or reversal
adjustment), as applicable. As used in this Section 3.1.2, the “Applicable Payment/Credit-Back Date” shall mean (x) in the case of Section 3.1 or Section 3.2 hereof, the fifth (5th) day after the eighth (8th) Business Day of the month following the end of the subject
Test Period (except that, in the case of any Test Period ending on December 31, the date in this subsection (x) shall be the January 31 following the end of such Test Period, in order to allow time for the completion of final,
calendar year end accounting adjustments), (y) in the case of Section 3.3 or Section 3.4 hereof, the February 15 that follows the end of the applicable calendar year, and (z) in the case of
Section 3.4 hereof, the fifth (5th) day
after the eighth (8th) Business Day of the month
following the month to which the applicable credit-back (or reversal adjustment) relates (except that, if the month to which the applicable credit-back (or reversal adjustment) relates is December, the date in this subsection (z) shall be the
January 31 following such December, in order to allow time for the completion of final, calendar year end accounting adjustments). 
 3.2 Monthly Facility-Level ANOI Plus Applicable Previous Cure Payments Test. Subject to Section 3.1.1 above regarding Pre-Stabilized Facilities that become Stabilized Facilities,
as of the end of each calendar month, commencing with the end of December, 2011 (unless a Manager Event of Default arises under the Management Agreement relating to a particular Stabilized Facility, in which case this Section 3.2 shall
commence to apply to any such Stabilized Facility at the end of the month during which such Manager Event of Default arises), the Expected ANOI for each Stabilized Facility shall be compared to the ANOI Plus Applicable Previous Cure Payments for
such Stabilized Facility, in each case for the Test Period then ending (in the case of the Expected ANOI, using a weighted average Expected ANOI for any Test Period that includes parts of two (2) calendar years). If any such comparison for any
such Test Period reflects that the ANOI Plus Applicable Previous Cure Payments for a Stabilized Facility is less than eighty-five percent (85%) of the applicable Expected ANOI for such Stabilized Facility, the Owner of such Stabilized Facility
shall have a Property Performance Termination Right, in its sole discretion and at its option at any time thereafter (or, if the applicable Manager of such Stabilized Facility qualifies for a cure period as set forth below, at any time after the
cure period set forth below), to terminate the Management Agreement for such Stabilized Facility by notice to the applicable Manager of such Stabilized Facility; provided, however, that, on the conditions that no Event of Default then exists
under this Agreement and no Manager Event of Default then exists under such Management Agreement and subject to Section 3.2.2 and Section 3.5 below, such Manager may prevent such Owner from exercising its aforesaid Property
Performance Termination Right, by making a non-refundable payment (herein, a “Property Performance Cure”) to such Owner and in the Applicable Local Currency, on or before five (5) days after the eighth (8th) Business Day of the month following the end of the subject
Test Period (or, in the case of any Test Period ending on December 31, on or before the following January 31), in an amount equal to the amount by which eighty-five percent (85%) of the Expected ANOI for such Stabilized Facility
exceeded the ANOI Plus Applicable Previous Cure Payments for such Stabilized Facility, in each case for the applicable Test Period. 

  
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 3.2.1. Deemed Impact of Property Performance Cure Payments on
Revenue. Solely for purposes of making determinations of (a) whether a Property Performance Termination Right has arisen with respect to future Test Periods (i.e., Test Periods ending on a future date) and (b) the amount of any
required Facility Expense Overage Cure and/or Aggregate Expense Overage Cure payment, the amount of any Property Performance Cure payment that is made by Manager with respect to a particular Stabilized Facility and Test Period shall be deemed to be
additional revenue that was received by the applicable Stabilized Facility in equal monthly installments during the aforesaid particular Test Period. For example, if a Property Performance Cure payment in the amount of $120,000.00 is made by Manager
with respect to a particular Stabilized Facility for the Test Period ending on December 31, 2011, such Property Performance Cure payment shall be treated as having been received with respect to such Stabilized Facility in equal $10,000.00
monthly installments during 2011 (i.e. $10,000.00 deemed received in January, 2011, $10,000.00 deemed received in February, 2011, and so forth), so that, when such Stabilized Facility’s ANOI Plus Applicable Previous Cure Payments is calculated
for Test Periods ending during 2012, the actual revenues at such Stabilized Facility shall be deemed to have been increased by $10,000.00 in each of the months in 2011 that are included in the applicable Test Period ending during 2012 (e.g., for the
Test Periods ending on February 29, 2012, April 30, 2012 and November 30, 2012, the actual revenues at the applicable Stabilized Facility shall include, respectively, ten months x $10,000.00, eight months x $10,000.00 and one month x
$10,000.00 of such deemed additional revenue). 
 3.2.2. Limits on Cure of Property Performance Termination
Rights. Notwithstanding anything to the contrary contained in Section 3.2 above, the applicable Manager with respect to a particular Stabilized Facility shall be permitted to cure Property Performance Termination Rights that
arise with respect to such Stabilized Facility no more than three (3) times per Stabilized Facility during the term of the Management Agreement that is applicable to such Stabilized Facility (such cure limitation is herein referred to as the
“Facility Cure Limit”). For purposes of the Facility Cure Limit and the Aggregate Cure Limit referenced in Section 3.5 below, any group of Property Performance Cure payments that relate to a particular Stabilized
Facility and to a set of ten (10) consecutive Test Periods shall be treated as a single Property Performance Cure; provided, however, that (a) no Property Performance Termination Right shall have arisen with respect to such
Stabilized Facility under Section 3.1 hereof and with respect to any of such ten (10) consecutive Test Periods, (b) no prior Property Performance Cure shall have been exercised by the applicable Manager of such Stabilized
Facility with respect to any of the ten (10) Test Periods immediately preceding the Test Period that relates to the first Property Performance Cure in such group and (c) Property Performance Cure payments shall have been made by such
Manager with respect to all of the to-be-grouped Property Performance Cure payments. For example, if Manager exercised a Property Performance Cure relative to the Test Periods ending January 31, 2012 (with no prior Property Performance Cures),
March 31, 2012, October 31, 2012, August 31, 2013, and September 30, 2013, then: (i) the group of Property Performance Cures relative to the Test Periods ending January 31, 2012, March 31, 2012 and October 31,
2012 would constitute a single Property Performance Cure for purposes of the Facility Cure Limit and the Aggregate Cure Limit, (ii) the Property Performance Cure for the Test Period ending August 31, 2013 would constitute a second Property
Performance Cure, and (iii) the Property Performance Cure relative to the Test Period ending September 30, 2013 would constitute a third Property Performance Cure because the Property Performance Cure relative to

  
 24 

 
the Test Period ending August 31, 2013 would be too proximate to the Property Performance Cure relative to the Test Period ending October 31, 2012 to be eligible for grouping.

 3.2.3. Waiver of Certain Property Performance Termination Rights. In the event (a) a
Property Performance Termination Right arises under Section 3.2 hereof relative to a particular Stabilized Facility and a particular month (the “Section 3.2.3 Month”) and (b) such Property Performance Termination
Right is not cured in a timely manner by the applicable Manager or is not curable by the applicable Manager in accordance with the terms of Section 3.2 (e.g., due to the exhaustion of the Facility Cure Limit relative to such Stabilized
Facility) (such uncured Property Performance Termination Right relative to such Section 3.2.3 Month is herein referred to as the “Section 3.2.3 Termination Right”), the right of the Owner of such Stabilized Facility to
terminate the Management Agreement for such Stabilized Facility on account of such Section 3.2.3 Termination Right shall be deemed to have been waived by such Owner (any such waiver is herein referred to as a “Section 3.2.3
Waiver”) provided and on the condition that all of the following conditions are satisfied by the applicable Manager and subject to all of the following terms: 

(i) During the period (the “Section 3.2.3 Period”) from the date when such Owner’s
Section 3.2.3 Termination Right arises until the date, if ever, that the applicable Manager satisfies all of the conditions to such Section 3.2.3 Waiver that are set forth in this Section 3.2.3, such Owner shall retain the
right, in its sole discretion and at its option at any time during such period, to terminate the Management Agreement for such Stabilized Facility by notice to the applicable Manager of such Stabilized Facility; 

(ii) As a condition to such Section 3.2.3 Waiver, for any period of six (6) consecutive months following the
Section 3.2.3 Month (and the first month of such six (6) consecutive month period need not be the month that immediately follows the Section 3.2.3 Month (e.g., such first month could be a number of months after the Section 3.2.3
Month)), no Property Performance Termination Right shall have arisen with respect to such Stabilized Facility; 

(iii) As a condition to such Section 3.2.3 Waiver and at a time when no other default then exists under this
Agreement and no Manager Event of Default then exists under such Management Agreement, the applicable Manager shall have delivered to such Owner (x) a notice stating that the applicable Manager desires to exercise its right to obtain a
Section 3.2.3 Waiver as provided in this Section 3.2.3 and identifying the Section 3.2.3 Termination Right, Section 3.2.3 Month and the Other Section 3.2.3 Termination Rights (as defined below) to which such notice
relates and (y) a non-refundable payment, which payment shall not be included in or otherwise affect the ANOI or ANOI Plus Applicable Previous Cure Payments for such Stabilized Facility, in an amount equal to one-half (1/2) of the
aggregate amount of the Property Performance Cure payments that such Owner would have received from the applicable Manager if the applicable Manager had been allowed to cure (e.g., without being restricted by the Facility Cure Limit that applies to
such Stabilized Facility), and had cured, (1) the Section 3.2.3 Termination Right and (2) every other Property Performance Termination Right that arose under Section 3.2 hereof during the Section 3.2.3

  
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Period with respect to such Stabilized Facility (herein, the “Other Section 3.2.3 Termination Rights”); and 

(iv) If the applicable Manager satisfies all of the conditions to such Section 3.2.3 Waiver that are set forth in
this Section 3.2.3 and the other terms of this Section 3.2.3 are satisfied, the Section 3.2.3 Termination Right relative to the Section 3.2.3 Month and the Other Section 3.2.3 Termination Rights, in each case as such
termination rights relate solely to such Stabilized Facility, shall be deemed to have been waived by such Owner, but such waiver shall not limit or impair the right of such Owner to terminate such Management Agreement in the event a Property
Performance Termination Right arises under Section 3.2 hereof with respect to such Stabilized Facility and any month following the end of the Section 3.2.3 Period or the rights of such Owner or any other Owner on account of any
Property Performance Termination Right arising at any time under Section 3.1 hereof or the rights of any other Owner on account of any Property Performance Termination Right arising at any time under Section 3.2 hereof with
respect to another Stabilized Facility. In addition, a Property Performance Termination Right that is waived with respect to a particular Stabilized Facility pursuant to the terms of this Section 3.2.3 shall nevertheless continue to be
counted as having occurred for purposes of the Facility Cure Limit that is applicable to such Stabilized Facility and of the Aggregate Cure Limit referenced in Section 3.5 below. 

3.3 Annual Facility-Level Controllable Costs Test. As of the end of each calendar year, commencing with the end of 2010,
subject to Section 3.3.3 hereof, the actual aggregate Controllable Costs for each Facility shall be compared to the budgeted aggregate Controllable Costs for such Facility, in each case for the calendar year then ending. If any such
comparison for any calendar year reflects that the actual aggregate Controllable Costs for a Facility exceed one hundred ten percent (110%) of the budgeted aggregate Controllable Costs for such Facility, the Owner of such Facility shall have
the right, in its sole discretion and at its option at any time thereafter (or, if the applicable Manager of such Facility qualifies for a cure period as set forth below, at any time after the cure period set forth below), to terminate the
Management Agreement for such Facility by notice to the applicable Manager of such Facility (any such termination right under this Section 3.3 is herein referred to as a “Facility Expense Termination Right”);
provided, however, that, on the conditions that no Event of Default then exists under this Agreement and no Manager Event of Default then exists under such Management Agreement and subject to Section 3.3.2 and
Section 3.5 below, such Manager may prevent such Owner from exercising its aforesaid Facility Expense Termination Right, by making a non-refundable payment (herein, a “Facility Expense Overage Cure”) to such Owner and in
the Applicable Local Currency, on or before the February 15 that follows the end of the such calendar year, of an amount, not less than zero, equal to (a) the amount by which the actual aggregate Controllable Costs for such Facility and
such calendar year exceeded one hundred ten percent (110%) of the budgeted aggregate Controllable Costs for such Facility and such calendar year, minus (b) if a Property Performance Cure payment(s) has (have) been made with respect to such
Facility and any Test Period ending during the calendar year as to which such Facility Expense Overage Cure payment is being made, that portion of such Property Performance Cure payment(s) that, as described in Section 3.2.1 above, is
(are) deemed to have been received at 

  
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such Facility during the calendar year to which such Facility Expense Overage Cure payment relates (and, if the amount referenced in subsection (b) above exceeds the amount referenced in
subsection (a) above, the amount determined pursuant to such subsections (a) and (b) shall be deemed to be equal to zero). 
 3.3.1. Deemed Impact of Facility Expense Overage Cure Payments on Revenue. Solely for purposes of making determinations of whether a Property Performance Termination Right has arisen with
respect to future Test Periods (e.g., the Test Period ending on the January 31st that follows the end of the calendar year to which any Facility Expense Overage Cure payment relates), with respect to each month of the calendar year as to which a Facility Expense Overage Cure payment
is being made, one-twelfth (1/12) of the amount of such Facility Expense Overage Cure shall be deemed to be additional monthly revenue that was received by the applicable Facility. For example, relative to a particular Facility and calendar
year 2011, if the amount in Section 3.3(a) above is $250,000.00 and the amount in Section 3.3(b) above is $70,000.00, the amount of the required Facility Expense Overage Cure would equal $180,000.00, and 1/12th ($15,000.00)
of such $180,000.00 would be deemed to have been received by such Facility during each month of such calendar year 2011, so that, when such Facility’s ANOI Plus Applicable Previous Cure Payments is calculated for Test Periods ending during
2012, the actual revenues at such Facility shall be deemed to have been increased by $15,000.00 in each of the months in 2011 that are included in the applicable Test Period ending during 2012 (e.g., for the Test Periods ending on February 29,
2012, April 30, 2012 and November 30, 2012, the actual revenues at the applicable Facility shall include, respectively, ten months x $15,000.00, eight months x $15,000.00 and one month x $15,000.00 of such deemed additional revenue).

 3.3.2. Limits on Cure of Facility Expense Termination Rights. Notwithstanding anything to the
contrary contained in Section 3.3 above or 3.4 below but subject to Section 3.5(3) below, Manager shall be permitted to cure Facility Expense Termination Rights that arise with respect to a particular Facility no more
than three (3) times per Facility during the term of the Management Agreement that is applicable to such Facility. 
 3.3.3. Certain Provisions Regarding Pre-Stabilized Facilities and Controllable Costs. In the case of any Pre-Stabilized Facility, the provisions of Sections 3.3 and 3.4 hereof
shall commence to apply thereto, and such Facility shall commence to be included in the determinations with respect to Controllable Costs under Sections 3.3 and 3.4 hereof, as of the Expected Stabilization Date that is applicable to such
Facility (if such Expected Stabilization Date is the first (1st) day of a calendar year) and otherwise as of the first
(1st) day of the first (1st) calendar year that follows such Expected Stabilization Date,
and, solely for purposes of such Sections 3.3 and 3.4 hereof, during any period prior to such commencement date relative to any such Facility, such Facility shall be treated as if it was not a “Facility”. 

3.4 Annual All-Facilities Controllable Costs Test. As of the end of each calendar year, commencing with the end of 2010,
subject to Section 3.3.3 hereof, the sum of the actual aggregate Controllable Costs for all Facilities then under Management Agreements, plus the aggregate amount of the respective Former Facility-Controllable Costs Adjustments (as
described in Section 3.4.3 below) relative to all Facilities that ceased to be managed under Management Agreements during such calendar year (if any or all of such respective Former Facility-Controllable Costs Adjustments are negative
amounts as described in Section 3.4.3  

  
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below, the “aggregate amount of the respective Former Facility-Controllable Costs Adjustments” that is referenced above shall be the net amount of such positive and negative Former
Facility-Controllable Costs Adjustments, and, if such net amount is a negative number, the “plus” referenced above shall result in a reduction rather than an increase), in each case determined after first translating any amounts that are
expressed in Canadian Dollars into US Dollars using the Applicable Translation Rate as of the end of such calendar year, shall be compared to the Applicable Aggregate Limit (reduced (or increased) as provided in the definition thereof on account of
any cessation(s) (or commencement(s)) of management that occurred during such calendar year), in each case for the calendar year then ending. If any such comparison for any calendar year reflects that (a) the aforesaid sum of the actual
aggregate Controllable Costs for all Facilities then under Management Agreements plus the aforesaid aggregate amount of such Former Facility-Controllable Costs Adjustments exceeds (b) such Applicable Aggregate Limit (the amount of any such
excess is herein referred to as the “Aggregate Expense Overage Amount”), Ventas SSL shall have the right, in its sole discretion and at its option at any time thereafter (or, if Manager qualifies for a cure period as set forth
below, at any time after the cure period set forth below), to terminate any one (1) or more, or all, of the Management Agreements by notice to Manager (any such termination right under this Section 3.4 is herein referred to as an
“Aggregate Expense Termination Right”, and a Facility Expense Termination Right and/or Aggregate Expense Termination Right is herein referred to, individually or collectively as the context requires, as an “Expense
Termination Right”); provided, however, that, on the condition that no Event of Default then exists under this Agreement and subject to Section 3.3.2 above and Section 3.5 below, Manager may prevent Ventas SSL
from exercising its aforesaid Aggregate Expense Termination Right, by making a non-refundable payment (herein, an “Aggregate Expense Overage Cure”) to Ventas SSL, on or before the February 15 that follows the end of such
calendar year and in US Dollars, of an amount determined as follows: 
 (i) if a Facility Expense Overage Cure
payment (or payments) has (have) been made with respect to the calendar year as to which such Aggregate Expense Overage Cure payment is being made, the aggregate amount of such Facility Expense Overage Cure payment (or payments) shall be determined
(although, in the case of any such payment that was made in Canadian Dollars, the amount of such payment shall be translated into US Dollars, using the Applicable Translation Rate as of the end of such calendar year, prior to performing such
aggregation) (such aggregate amount is herein referred to as the “Total Facility Overage Payments Amount”); 
 (ii) if a Property Performance Cure payment (or payments) has (have) been made with respect to any Facility and any Test Period ending during the calendar year as to which such Aggregate Expense Overage
Cure payment is being made, then, (x) the portion of each such Property Performance Cure payment that is, pursuant to Section 3.2.1 hereof, deemed to have been received as additional revenue at such Facility during such calendar
year shall be determined, and, in the case of any such Facility as to which multiple Property Performance Cure payments were made relative to Test Periods ending during such calendar year, the aggregate amount of such portions for each such Facility
shall be determined, in each case in this subsection (x) with any such amounts relative to any such Facility located in Canada to be translated into US Dollars as 

  
 28 

 
provided in subsection (y) below (each such amount (or aggregated amount, if applicable) for each such Facility is herein referred to as the “Facility Performance Cure
Amount”), and (y) the aggregate amount of the respective Facility Performance Cure Amounts for the Facilities referenced in this subsection (ii) shall be determined (although, in the case of any such Facility located in Canada,
the aforesaid amount for any such Facility shall be translated into US Dollars, using the Applicable Translation Rate as of the end of such calendar year, prior to performing such aggregation) (such aggregate amount referenced in this subsection
(y) is herein referred to as the “Total Performance Cure Amount”); and 
 (iii) the amount
of the required Aggregate Expense Overage Cure payment shall equal, in US Dollars, the amount, if any, by which the Aggregate Expense Overage Amount exceeds the sum of (x) the Total Facility Overage Payments Amount determined in subsection
(i) above, plus (y) the Total Performance Cure Amount determined in subsection (ii) above. 

3.4.1. Deemed Impact of Aggregate Expense Overage Cure Payments on Revenue. Solely for purposes of making
determinations of whether a Property Performance Termination Right has arisen with respect to future Test Periods, with respect to each month of the calendar year as to which an Aggregate Expense Overage Cure payment is being made, one-twelfth
(1/12) of the amount of the Aggregate Expense Overage Cure payment shall be deemed to be additional monthly revenue that was received by all Facilities (exclusive of any Facility(ies) that ceased to be managed under a Management Agreement
during such calendar year), and such additional monthly revenue amount shall be spread among the aforesaid Facilities in the following manner: 
 (a) the portion of such additional monthly revenue amount that relates to Facilities located in Canada shall be deemed to equal the product of (i) the amount of such additional monthly revenue amount
times (ii) the percentage, determined exclusive of any amounts budgeted for any Facility(ies) that ceased to be managed under a Management Agreement during such calendar year, calculated by dividing the Translated Budgeted Canadian Facilities
Controllable Costs by the Translated Budgeted All Facilities Controllable Costs (such percentage is herein referred to as the “Canadian Budget Percentage”); 
 (b) the portion of such additional monthly revenue amount that relates to Facilities located in the United States shall be deemed to equal the product of (i) the amount of such additional monthly
revenue amount times (ii) the percentage, determined exclusive of any amounts budgeted for any Facility(ies) that ceased to be managed under a Management Agreement during such calendar year, calculated by dividing the Budgeted US Facilities
Controllable Costs by the Translated Budgeted All Facilities Controllable Costs (such percentage is herein referred to as the “US Budget Percentage”); 
 (c) the portion of such additional monthly revenue amount that relates to Facilities located in Canada, as determined pursuant to subsection (a) above, shall be translated into Canadian Dollars,
using the Applicable Translation Rate as of 

  
 29 

 
the end of the calendar year to which such Aggregate Expense Overage Cure payment relates, and such translated amount of Canadian Dollars shall be spread among the Facilities located in Canada
(exclusive of any Facility(ies) that ceased to be managed under a Management Agreement during such calendar year) in the same proportion that the budgeted aggregate Controllable Costs at each of such Facilities located in Canada bears to the amount
of the budgeted aggregate Controllable Costs for all such Facilities located in Canada, in each case for such calendar year; and 

(d) the portion of such additional monthly revenue amount that relates to Facilities located in the United States, as determined pursuant
to subsection (b) above, shall be spread among the Facilities located in the United States (exclusive of any Facility(ies) that ceased to be managed under a Management Agreement during the calendar year to which such Aggregate Expense Overage
Cure payment relates) in the same proportion that the budgeted aggregate Controllable Costs at each of such Facilities located in the United States bears to the amount of the budgeted aggregate Controllable Costs for all such Facilities located in
the United States, in each case for such calendar year. 
 For example, relative to calendar year 2011, assume that
(i) the amount of the required Aggregate Expense Overage Cure payment is $60,000.00, in US Dollars, (ii) the Canadian Budget Percentage is 20%, (iii) the Applicable Translation Rate as of the end of 2011 is 1.00 US Dollars for 1.03
Canadian Dollars and (iv) budgeted aggregate Controllable Costs at Facility A, located in Canada, for such calendar year 2011 equaled 15% of the aggregate amount of the budgeted aggregate Controllable Costs at all Facilities located in Canada
for such calendar year 2011. In such example,
(w) 1/12th ($5,000.00) of such $60,000.00 would be
deemed to have been received as additional monthly revenue at all of the Facilities collectively (exclusive of any Facility(ies) that ceased to be managed under a Management Agreement during such calendar year 2011) in each month of calendar year
2011, (x) $1,000.00 of such additional $5,000.00 of monthly revenue would be treated as having been received at Facilities located in Canada, based upon the assumed 20% Canadian Budget Percentage, (y) such $1,000.00 in US Dollars would, as
translated, equal $1,030.00 in Canadian Dollars, using the above referenced assumed Applicable Translation Rate, and (z) 15% ($154.50 in Canadian Dollars) of such $1,030.00 in Canadian Dollars would be treated as additional monthly revenue
received by Facility A during each month of such calendar year 2011, so that, when such Facility’s ANOI Plus Applicable Previous Cure Payments is calculated for Test Periods ending during 2012, the actual monthly revenues at such Facility shall
be deemed to have been increased by $154.50 in Canadian Dollars in each of the months in 2011 that are included in the applicable Test Period ending during 2012 (e.g., for the Test Periods ending on February 29, 2012, April 30, 2012
and November 30, 2012, the actual revenues at the applicable Facility shall include, respectively and in Canadian Dollars, ten months x $154.50, eight months x $154.50 and one month x $154.50 of such deemed additional revenue). 

3.4.2. Aggregate Expense Overage Cure Payment Example. For example, relative to calendar year 2012, assume
that: 
 (a) throughout such year there were four (4) Facilities in the aggregate under Management Agreements, 

  
 30 

 (b) at Canadian Facility A, a Facility Expense Overage Cure payment was made in the amount
of $20.00 Canadian Dollars with respect to such year, and at none of the other Facilities was a Facility Expense Overage Cure payment required with respect to such year, 
 (c) at US Facility C, a Property Performance Cure payment was made in the amount of $12.00 US Dollars relative to the month of June, 2012, and at none of the other Facilities was a Property Performance
Cure payment required with respect to such year, 
 (d) the Applicable Translation Rate as of the end of 2012 is 1.00 US Dollars
for 1.03 Canadian Dollars and the Applicable Cushion Amount US Index Factor is 1.0000 for 2012, 
 (e) at Canadian Facility A,
the budgeted amount of the Controllable Costs for such year equaled $5,000.00 Canadian Dollars (as translated, $4,854.37 US Dollars) and the actual amount of the Controllable Costs incurred at such Facility during such year equaled $5,520.00
Canadian Dollars (as translated, $5,359.22 US Dollars), 
 (f) at Canadian Facility B, the budgeted amount of the Controllable
Costs for such year equaled $4,000.00 Canadian Dollars (as translated, $3,883.50 US Dollars) and the actual amount of the Controllable Costs incurred at such Facility during such year equaled $4,395.00 Canadian Dollars (as translated, $4,266.99 US
Dollars), 
 (g) at US Facility C, the budgeted amount of the Controllable Costs for such year equaled $5,000.00 US Dollars and
the actual amount of the Controllable Costs incurred at such Facility during such year equaled $5,495.00 US Dollars, 
 (h) at US
Facility D, the budgeted amount of the Controllable Costs for such year equaled $6,000.00 US Dollars and the actual amount of the Controllable Costs incurred at such Facility during such year equaled $6,595.00 US Dollars, and 

(i) the Applicable Aggregate Limit equaled $21,237.87 throughout such year (as set forth in the definition of Applicable Aggregate Limit,
assuming no prior reductions or increases thereof, such limit equals the Translated Budgeted All Facilities Controllable Costs for the applicable calendar year, plus the product of $10,000,000.00 US Dollars times the Applicable Cushion Amount US
Index Factor; on account of the small number of Facilities and the small scale of the budgeted and actual Controllable Costs that were assumed in this example, such $10,000,000.00 amount would, if used in this example, make this example less useful
as an illustrative tool, and, accordingly, solely for purposes of this example, such $10,000,000.00 US Dollars amount has been reduced to $1,500.00 US Dollars). 

  
 31 

 Under the aforesaid assumed facts, an Aggregate Expense Overage Amount equal to $478.34 Dollars would exist
(the actual Controllable Costs at the Facilities, as translated in the case of Canadian Facilities A and B, would equal $21,716.21 US Dollars ($5,359.22 + $4,266.99 + $5,495.00 + $6,595.00 = $21,716.21); the Translated Budgeted All Facilities
Controllable Costs would equal $19,737.87 US Dollars ($4,854.37 + $3,883.50 + $5,000.00 + $6,000.00 = $19,737.87); the Applicable Aggregate Limit would equal $21,237.87 US Dollars ($19,737.87 + ($1,500.00 x 1.0000) = $21,237.87); and the aforesaid
actual Controllable Costs of $21,716.21 US Dollars would exceed the aforesaid Applicable Aggregate Limit of $21,237.87 US Dollars by such Aggregate Expense Overage Amount of $478.34 US Dollars), and the amount of the required Aggregate Expense
Overage Cure payment would be determined as follows: 
 (i) the Total Facility Overage Payments Amounts equals $19.42 US Dollars
(the Facility Expense Overage Cure payment of $20.00 Canadian Dollars relative to Canadian Facility A equals $19.42 US Dollars ($20.00 Canadian Dollars divided by 1.03 = $19.42 US Dollars)), 

(ii) in the case of US Facility C, a Property Performance Cure payment, and no Facility Expense Overage Cure payment,
was made with respect to such calendar year, and the Facility Performance Cure Amount relative to US Facility C equals $6.00 US Dollars (relative to the Property Performance Cure payment made relative to the month of June, 2012, pursuant to
Section 3.2.1 hereof, one-half of such payment (i.e.,  1/2 of $12.00) is deemed to have been received at such US Facility C during 2012, and such Facility Performance Cure Amount of $6.00 US Dollars is also the Total Performance Cure Amount (no translation of
the aforesaid Facility Performance Cure Amount relative to US Facility C into US Dollars is necessary, as such amount was initially calculated in US Dollars), and 
 (iii) the amount of the required Aggregate Expense Overage Cure payment equals $452.92 US Dollars (the Aggregate Expense Overage Amount of $478.34 US Dollars as described above minus the sum of the Total
Facility Overage Payments Amount of $19.42 US Dollars referenced in subsection (i) above and the Total Performance Cure Amount of $6.00 US Dollars referenced in subsection (ii) above = $478.34 US Dollars - ($19.42 US Dollars + $6.00 US
Dollars) = $452.92 US Dollars). 
 3.4.3. Former Facility-Controllable Costs Adjustment. In the
event that a Facility ceases to be managed under a Management Agreement during a particular calendar year, the amount of the “Former Facility-Controllable Costs Adjustment” shall be determined, and such amount shall be determined as
follows, in the case of any Facility located in Canada after first translating any amounts that are expressed in Canadian Dollars into US Dollars, using the Applicable Translation Rate: (i) the respective amounts of the actual and budgeted
Controllable Costs for such Facility for the portion of such calendar year that preceded such cessation shall be determined in US Dollars (respectively, the “Former Facility Actual Controllable Costs” and the “Former
Facility Budgeted Controllable Costs”), (ii) as of the commencement of such calendar year (i.e., before any reduction (or increase) of the Applicable Aggregate Limit on account of cessations (or commencements) of management occurring
during such calendar year), the respective percentages of the Applicable Aggregate Limit as of such commencement that 

  
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relate to (x) the Translated Budgeted All Facilities Controllable Costs (including any Facilities that ceased to be managed under a Management Agreement during such calendar year) and
(y) the Applicable Cushion Amount as of such commencement shall be determined (the percentage for the component referenced in subsection (y), rounded to the nearest one-hundredth of a percent, is herein referred to as the “Component
Percentage”), and (iii) the amount of the Former Facility-Controllable Costs Adjustment for such Facility shall be equal to (x) the amount by which the Former Facility Actual Controllable Costs for such Facility exceeds
(y) the product of the Former Facility Budgeted Controllable Costs times the sum of one (1) plus the Component Percentage (expressed as a number (e.g., 5.55% would equal 0.0555)) (or, if the amount referenced in subsection (y) exceeds
the amount referenced in subsection (x), the amount of the Former Facility-Controllable Costs Adjustment shall be a negative number equal to the amount of such excess of the subsection (y) amount over the subsection (x) amount).

 3.5 Aggregate Cure Limit; Additional Limitations on Cures. Notwithstanding anything to the contrary contained
in this Section 3, Manager shall not be permitted to cure any Property Performance Termination Right or Expense Termination Right that may arise, or to exercise or make any Property Performance Cure payment, Facility Expense Overage Cure
payment and/or Aggregate Expense Overage Cure payment, as applicable, to cure such termination right, if: 
 (a) subject to
Section 3.5(5) hereof, the number of Property Performance Termination Rights and/or Expense Termination Rights (inclusive of the aforesaid termination right in question and whether or not curable (in the case of Property Performance
Termination Rights arising under Section 3.1 hereof) or cured and whether or not the applicable Management Agreements remain in effect (i.e. Property Performance Termination Rights and/or Facility Expense Termination Rights and/or
Aggregate Expense Termination Rights that occurred with respect to a Facility while a Management Agreement was in effect relative to such Facility shall nevertheless count towards the aggregate limit referenced in this subsection (a) (such
aggregate limit is herein referred to as the “Aggregate Cure Limit”) regardless of whether such Facility ceases to be managed under a Management Agreement)) that have occurred, in the aggregate, is equal to or greater than fifty
(50); or 
 (b) during any consecutive sixty (60) month period, the sum of (i) the number of Management Agreements with
respect to which a Manager Event of Default then exists plus (ii) the number of Management Agreements that have been terminated during such period on account of Manager Events of Default is ten (10) or more (which number shall not include
terminations solely due to cross-default provisions resulting from being in a pool of mortgage loans, as opposed to a Manager Event of Default with respect to the applicable Facility; provided, however, that Manager pays any and all
prepayment penalties, default interest and other lender fees, costs and expenses contemplated by the applicable loan documents and actually incurred by any Ventas SSL Party in connection with such terminations and with respect to the entire pool in
connection with such terminations due to such cross-default provisions). 

  
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 For purposes of the Aggregate Cure Limit and notwithstanding anything to the contrary contained in this
Section 3, (1) subject to subsection (4) below, the occurrence of an Aggregate Expense Termination Right relative to a particular calendar year shall be counted, and treated, as if one (1) Expense Termination Right had
occurred during such calendar year, (2) as to each Stabilized Facility, no more than a total of three (3) Property Performance Termination Rights relative to such Stabilized Facility, and, as to each Facility, subject to subsection
(3) below, no more than a total of three (3) Facility Expense Termination Rights relative to such Facility, shall be counted towards the Aggregate Cure Limit, (3) if a Facility Expense Termination Right arises relative to a particular
Facility for a particular calendar year, and, as provided in Section 3.3 hereof, it is determined that the amount referenced in Section 3.3(b) hereof exceeds the amount referenced in Section 3.3(a) hereof, so that
no Facility Expense Overage Cure payment is required relative to such Facility for such calendar year, for purposes of the Aggregate Cure Limit and the limit on the number of Facility Expense Termination Rights relative to such Facility, no Facility
Expense Termination Right shall be deemed to have arisen and no Expense Termination Right that is counted against the Aggregate Cure Limit shall be deemed to have occurred with respect to such Facility, (4) if an Aggregate Expense Termination
Right arises relative to a particular calendar year and, as provided in Section 3.4(iii) hereof, it is determined that no Aggregate Expense Overage Cure payment is required relative to such calendar year, for purposes of the Aggregate
Cure Limit, no Expense Termination Right that is counted against the Aggregate Cure Limit shall be deemed to have occurred, and (5) solely for purposes of the Aggregate Cure Limit, upon the occurrence, relative to a particular Facility, of
(x) any Property Performance Termination Right under Section 3.1 hereof, (y) any uncured Property Performance Termination Right under Section 3.2 hereof or (z) any uncured Facility Expense Termination Right
under Section 3.3 hereof, the first such Property Performance Termination Right or Facility Expense Termination Right shall be counted against the Aggregate Cure Limit as two (2) Property Performance Termination Rights or Expense
Termination Rights, as the case may be (and no additional Property Performance Termination Right or Facility Expense Termination Right that may occur relative to such Facility shall be counted against the Aggregate Cure Limit). 

3.5.1. Aggregate Cure Limit Example. For example relative to Section 3.5(a) above, assume that,
at the beginning of calendar year 2013, there are three (3) Facilities in the aggregate under Management Agreements, that all of such Facilities are Stabilized Facilities located in the United States, that no Property Performance Termination
Rights arose with respect to any of the Facilities during 2012 and that, during such calendar year 2013: 
 (a) at Facility A,
(i) a Property Performance Termination Right arises, based on the required monthly testing, as of the end of months 1 and 12, (ii) the applicable Manager cures such termination rights by making Property Performance Cure payments, and
(iii) at the end of month 12, the actual aggregate Controllable Costs at such Facility A for calendar year 2013 are compared to the budgeted aggregate Controllable Costs for such Facility A for calendar year 2013 and such actual costs do not
exceed 110% of such budgeted costs, so no Facility Expense Termination Right arises under Section 3.3 hereof with respect to Facility A for such calendar year 2013; 

  
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 (b) at Facility B, (i) a Property Performance Termination Right arises, based on the
required monthly testing, as of the end of months 6 and 9, (ii) the applicable Manager cures such termination rights by making Property Performance Cure payments, (iii) a Property Performance Termination Right would have arisen with
respect to Facility B in each of months 10 and 11 of such calendar year if not for the impact of the Property Performance Cure payments made by such Manager with respect to such months 6 and 9 upon the deemed revenues at such Facility B in some of
the twelve months preceding the end of such months 10 and 11, and (iv) at the end of month 12, the actual aggregate Controllable Costs at such Facility B for calendar year 2013 are compared to the budgeted aggregate Controllable Costs for such
Facility B for calendar year 2013 and such actual costs exceed 110% of such budgeted costs, so a Facility Expense Termination Right arises under Section 3.3 hereof with respect to Facility B for such calendar year 2013, and a Facility
Expense Overage Cure payment is made by such Manager (due to the amount by which such actual costs exceeded such budgeted costs, it is determined that a Facility Expense Overage Cure payment is required, notwithstanding taking into account the
effect of the Property Performance Cure payments made by such Manager with respect to months 6 and 9 on the calculation of whether a Facility Expense Overage Cure payment is required); 

(c) at Facility C, (i) a Property Performance Termination Right arises, based on the required monthly testing, as of the end of
months 4, 5 and 6, (ii) the applicable Manager does not cure such termination rights by making Property Performance Cure payments, and (iii) at the end of month 7, the Management Agreement relative to Facility C is terminated by the
applicable Owner; and 
 (d) at the end of month 12, the sum of the actual aggregate Controllable Costs at Facilities A and B
plus the Former Facility-Controllable Costs Adjustment relative to Facility C is calculated and such sum is determined to exceed the Applicable Aggregate Limit (after reducing the Applicable Aggregate Limit due to the cessation of management of
Facility C), so that an Aggregate Expense Termination Right arises under Section 3.4 hereof with respect to such calendar year 2013, and an Aggregate Expense Overage Cure payment is made by Manager (due to the amount by which such sum
exceeded such Applicable Aggregate Limit, it is determined that an Aggregate Expense Overage Cure payment is required, notwithstanding taking into account the effect of the Property Performance Cure payment made by the applicable Manager with
respect to Facility A (because no Facility Expense Termination Right arose with respect to Facility A for such calendar year 2013), and the effect of the Facility Expense Overage Cure payment made by the applicable Manager with respect to Facility
B, on the calculation of whether an Aggregate Expense Overage Cure payment is required). 
 In such example, a total of six (6) Property
Performance Termination Rights and two (2) Expense Termination Rights would have occurred with respect to such calendar year 2013 (consisting of (w) relative to Facility A, two (2) Property Performance Termination Rights (the

  
 35 

 
Property Performance Termination Right relative to month 12 would not be proximate enough to the Property Performance Termination Right relative to month 1 to be grouped as provided in
Section 3.2.2 hereof, so, for purposes of the Facility Cure Limit, two (2), not one (1), Property Performance Termination Rights would have occurred), (x) relative to Facility B, one (1) Property Performance Termination Right
(due to the grouping provisions of Section 3.2.2 hereof) and one (1) Expense Termination Right (due to the occurrence of one (1) Facility Expense Termination Right), (y) relative to Facility C, three (3) Property
Performance Termination Rights (the Property Performance Termination Rights relative to Facility C count as separate, not grouped, Property Performance Termination Rights because the applicable Manager did not cure each of such termination rights),
and (z) one (1) additional Expense Termination Right (due to the occurrence of one (1) Aggregate Expense Termination Right relative to such calendar year)), and, for purposes of the Aggregate Cure Limit, pursuant to
Sections 3.5(1) and 3.5(5) above, seven (7) Property Performance Termination Rights and/or Expense Termination Rights would be counted against the Aggregate Cure Limit (consisting of two (2) such termination rights relative to
Facility A, two (2) such termination rights relative to Facility B, two (2) such termination rights relative to Facility C (pursuant to Section 3.5(5) above, the uncured Property Performance Termination Right relative
to month 4 at Facility C would count as two (2) termination rights against the Aggregate Cure Limit and the Property Performance Termination Rights relative to months 5 and 6 at Facility C would not count against the Aggregate Cure Limit) and
one (1) such termination right on account of the Aggregate Expense Termination Right relative to such calendar year). 
 3.5.2. Certain Provisions Regarding Pre-Stabilized Facilities and Certain Cure Limitations. In the case of any Pre-Stabilized Facility, the provisions of Section 3.5 hereof shall
commence to apply thereto, and such Facility shall commence to be included in the determinations under such Section 3.5, as of the Expected Stabilization Date that is applicable to such Facility. 

 

	4.	Shared Expenses Credits-Back 

 Any credits-back to the Facilities (or reversal adjustments thereof) that are required to be made by the terms of this Section 4 with respect to any month shall be made prior to the making of
any calculations or determinations that are required under Section 3 hereof. At the end of each month of each calendar year (including each December of each calendar year), Shared Expenses shall be allocated by Manager to each Facility
in the manner described in the respective Management Agreements. At the end of each calendar month and after the aforesaid allocations of Shared Expenses to individual Facilities, the aggregate amount of the Shared Expenses for all Facilities for
such calendar-year-to-date shall be determined (but, in the case of any such Shared Expenses allocated to Facilities located in Canada, with the amount of any such Shared Expenses first to be translated into US Dollars using the Applicable
Translation Rate as of the date of such determination), and, if (a) such aggregate amount is greater than (b) the product of one and two-tenths percent (1.2%) (such percentage, as adjusted in accordance with
Section 7.2.3(b) hereof, the “Shared Expenses Percentage”) times the Gross Revenues at all of the Facilities for such calendar year (determined after first translating into US Dollars the amount of any such Gross
Revenues at Facilities located in Canada, using the Applicable Translation Rate as of the date of such determination), then the amount of any such excess, as determined through the end of a particular calendar month, shall be credited back to the
Facilities, as a 

  
 36 

 
reduction (or reversal adjustment) in the Facility Expenses for such calendar month, and the amount of such credit through a particular calendar month shall be allocated among the Facilities in
proportion to the respective amounts that, on a calendar-year-to-date basis, were budgeted for Shared Expenses at each Facility (but, for purposes of determining such proportionate shares, any such calendar-year-to-date budgeted amounts of Shared
Expenses at Facilities located in Canada shall first be translated into US Dollars using the Applicable Translation Rate as of the end of such calendar month, and, once the respective amounts of the above-referenced excess that are to be credited
back to individual Facilities have been determined, in the case of each Facility located in Canada, its proportionate share of the credit-back shall have been determined in US Dollars, so, in order to reflect such credit-back as a reduction, in the
Applicable Local Currency, of the Facility Expenses for such Facility for such calendar month, the amount of such credit-back for each Facility located in Canada shall be translated from US Dollars into Canadian Dollars, using the Applicable
Translation Rate as of the end of such calendar month). In the event that a Shared Expenses credit-back arises in one (1) or more months of a particular calendar year and, thereafter in the same calendar year, the product referenced in
subsection (b) above for the calendar-year-to-date is greater than the aggregate amount referenced in subsection (a) above for the calendar-year-to-date, Shared Expenses credits-back relative to such calendar year shall be reversed
(sometimes referred to, in Section 3.1.2 and elsewhere in this Agreement, as a “reversal adjustment thereof” or a “reversal adjustment”) in an amount (the “Reversal Amount”) equal to the lesser of
(i) the amount of such excess or (ii) the net amount of the Shared Expenses credits-back relative to prior months of such calendar year (after taking into account the aggregate amount of any Reversal Amounts relative to prior months of
such calendar year), and such Reversal Amount shall be treated as an increase in the Facility Expenses for such calendar month and be allocated among the individual Facilities using the same methodology as was used for allocating Shared Expenses
credits-back among the individual Facilities as described above. For example, if, in month 1 of a particular calendar year, a Shared Expenses credit-back in the amount of $5.00 arises and if the product referenced in subsection (b) above for
the calendar-year-to-date is greater than the aggregate amount referenced in subsection (a) above for the calendar-year-to-date by $3.00 in month 2, and by $4.00 in month 3, of such calendar year, for such month 2 there would be a Reversal
Amount equal to $3.00 and for such month 3 there would be a Reversal Amount of $2.00 (representing the lesser of the subsection (i) above amount of $4.00 and the subsection (ii) above amount of $2.00 (the net amount of the prior-months
Shared Expenses credits-back would equal $5.00 (month 1) - $3.00 (month 2) = $2.00)). 
  

	5.	Base Management Fee 

5.1 Base Management Fee for 2010 and 2011. The Base Management Fee for each Stabilized Facility and Pre-Stabilized Facility,
for calendar years 2010 and 2011, shall be equal to the respective amounts, in US Dollars or Canadian Dollars, as applicable, that are shown on Exhibit I attached hereto and made a part hereof for the period from January 1, 2010
through March 31, 2010, and shall be equal to three and one-half percent (3.5%) (in the case of the last nine (9) months of 2010), and three and three-quarters percent (3.75%) (in the case of 2011), of the Gross Revenues for such
Stabilized or Pre-Stabilized Facility for the applicable period. 
 5.2 Base Management Fee from and after 2012 –
Stabilized Facilities. Subject to Section 5.5 hereof, the Base Management Fee for each Stabilized Facility for calendar year 2012 

  
 37 

 
and each subsequent calendar year shall be equal to the product of (a) the Gross Revenues for such Stabilized Facility for the calendar year in question (calculated in the Applicable Local
Currency) times (b) a percentage (the “Applicable BMF Percentage”) for such calendar year equal to the greater of (i) five percent (5%) or (ii) the percentage equal to six percent (6%) less one-quarter of
one percent (0.25%) for each one percent (1%) (or part thereof) by which the ANOI for all Stabilized Facilities for such calendar year (calculated, in the case of each Stabilized Facility located in the United States, after first translating
the amount of such ANOI into Canadian Dollars, using the Applicable Facility Translation Rate that is applicable to such Stabilized Facility) is less than the BMFEANOI Amount for all Stabilized Facilities for such calendar year (calculated, in the
case of each Stabilized Facility located in the United States, after first translating the amount of such BMFEANOI Amount into Canadian Dollars, using the Applicable Facility Translation Rate that is applicable to such Stabilized Facility) (for
example, if the ANOI for all Stabilized Facilities for a particular calendar year is 99,750.00 Canadian Dollars and the BMFEANOI Amount for all Stabilized Facilities for such calendar year is 100,000.00 Canadian Dollars, the amount referenced in
this subsection (ii) would equal five and three-quarters percent (5.75%) (99,750.00 Canadian Dollars is less than 100,000.00 Canadian Dollars by 250.00 Canadian Dollars, which, expressed as a percentage of such 100,000.00 Canadian Dollars
(and rounded up to the nearest whole number, due to the “(or part thereof)” language above) is 1%, and the percentage in subsection (ii) accordingly equals 6% - (0.25% for each 1% or part thereof = 0.25% x 1 = 0.25%) = 5.75%, and,
accordingly, in the case, for example, of a particular Stabilized Facility located in the United States that, for the calendar year in question, had Gross Revenues of 10,000.00 US Dollars, the Base Management Fee would equal 575.00 US Dollars and
would be paid in US Dollars). 
 5.3 Base Management Fee – Estimated and Reconciling Payments – Stabilized
Facilities. At the end of each January, February, April, May, July, August, October and November, commencing with January 2012, the Base Management Fee relative to each Stabilized Facility shall be determined and an estimated amount on
account of the Base Management Fee for such Stabilized Facility shall be paid, in the Applicable Local Currency, in the manner described in the applicable Management Agreements, (a) based upon the Gross Revenues for such Stabilized Facility for
such month (calculated in the Applicable Local Currency), (b) using as the estimated Applicable BMF Percentage for such month (i) the Applicable BMF Percentage for the preceding calendar year (in the case of any such estimated payment for
a January or February) or (ii) the estimated Applicable BMF Percentage as of the end of the preceding calendar quarter (as determined below in this Section 5.3) (in the case of any such estimated payment for an April, May, July,
August, October or November), and (c) subject to the adjustments described in this Section 5.3. At the end of each calendar quarter of each calendar year (commencing with the first quarter of 2012), (x) subject to
Section 5.5 hereof, the Applicable BMF Percentage referenced in Section 5.2(b) above shall be estimated (or, in the case of any calendar year end calculation, determined) based upon the calendar-year-to-date ANOI and BMFEANOI
Amount for all Stabilized Facilities (calculated, in each case for each Stabilized Facility located in the United States, after first translating the respective amounts of such calendar-year-to date ANOI and BMFEANOI Amount for each such Stabilized
Facility into Canadian Dollars, using the Applicable Facility Translation Rate that is applicable to such Stabilized Facility), and (y) using such estimated (or, in the case of any calendar year calculation, determined) Applicable BMF
Percentage, the Base Management Fee paid with respect to each Stabilized Facility shall be reconciled, by a payment, in the Applicable Local Currency, from the 

  
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applicable Owner to Manager (which may be made through the retention by Manager of the appropriate amount from the Operating Account (as defined in the applicable Management Agreement) containing
Gross Revenues of such Stabilized Facility) or by Manager to the applicable Owner, as applicable, of the amount necessary so that the calendar-year-to-date amount of the Base Management Fee paid with respect to such Stabilized Facility equals the
product of the calendar-year-to-date Gross Revenues for such Stabilized Facility (calculated in the Applicable Local Currency) times the aforesaid estimated Applicable BMF Percentage (or final Applicable BMF Percentage, in the case of any calendar
year end determination). Each such reconciling payment shall be made by the required payor by on or before the seventh
(7th) day after the eighth (8th) Business Day of the month that follows the end of the
applicable calendar quarter (or, in the case of any calendar quarter ending on December 31, by on or before the following January 31). 
 5.4 Base Management Fee – Pre-Stabilized Facilities. For calendar year 2012 and thereafter, a Base Management Fee shall be payable with respect to any Pre-Stabilized Facility for the
period prior to the Expected Stabilization Date that is applicable to any such Pre-Stabilized Facility on the terms provided in the Management Agreement relating thereto. 
 5.5 Certain Provisions Regarding Base Management Fees Upon Expiration or Termination of a Management Agreement. In the case of any Management Agreement that expires or is terminated
effective on any date other than December 31 (any such Management Agreement that expires or is terminated (but, as described below, not including any Management Agreement that is an Affected Management Agreement pursuant to the provisions of
Section 7) effective on any date other than December 31 is herein referred to as a “Terminated Management Agreement”, and such effective date is herein referred to as the “Termination Effective
Date”), the Base Management Fee calculations and payments referenced in this Section 5 for the calendar year that includes such Termination Effective Date shall be affected as described in this Section 5.5. With
respect to the Facility to which any such expiration or termination relates (the “Terminated Facility”), (x) if such Termination Effective Date occurs during 2010 or 2011, the Manager of the Terminated Facility shall be paid an
amount as the Base Management Fee for such Facility equal to the Gross Revenues of such Terminated Facility through the Termination Effective Date times the applicable Base Management Fee percentage set forth in Section 5.1 (i.e., 3.5%
or 3.75%, as applicable) (after considering any payments to Manager as set forth in Section 5.3) or (y) if such Termination Effective Date occurs during, or after, 2012, the Base Management Fee with respect to such Terminated
Facility shall be determined and an estimated amount on account of the Base Management Fee for such Terminated Facility shall be paid as provided in Section 5.3 of this Agreement and the Terminated Management Agreement for the period
through the Termination Effective Date (in the case of an expiration or termination on a date other than at a month end, the estimated Applicable BMF Percentage for the last full month prior to such expiration or termination shall be used and
applied to determine the Base Management Fee for such Terminated Facility for such partial month (subject to any reconciling payment as described below)). At the end of the calendar year that includes such Termination Effective Date, the ANOI
relative to such Terminated Facility through the Termination Effective Date, and a prorated portion of the BMFEANOI Amount for such Terminated Facility through the Termination Effective Date, shall be included in the aggregations of ANOIs and
BMFEANOI Amounts that are used to determine the Applicable BMF Percentage referenced in Section 5.2(b) hereof that is applicable for such 

  
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calendar year (but, in the case of each Terminated Facility that is located in the United States, with such ANOI and BMFEANOI Amount relative to each such Terminated Facility first to be
translated into Canadian Dollars using the Applicable Facility Translation Rate that is applicable to such Terminated Facility). Using the aforesaid Applicable BMF Percentage that is applicable for such calendar year, the Base Management Fee for
such Terminated Facility for such calendar year through the Termination Effective Date shall be reconciled, by a payment, in the Applicable Local Currency, from the applicable Owner to Manager or by Manager to the applicable Owner, as applicable, of
the amount necessary so that the calendar-year-through-the-Termination-Effective-Date amount of the Base Management Fee paid with respect to such Terminated Facility equals the product of the Gross Revenues at such Terminated Facility through the
Termination Effective Date times the aforesaid Applicable BMF Percentage, and each such reconciling payment shall be made by the required payor by on or before the January 31 following the end of such calendar year. This Section 5.5
shall not apply in the case of a severance transaction of the nature described in Section 7 hereof, as in such a severance transaction the Affected Management Agreement (as defined in Section 7 hereof) is not terminated.

  

	6.	Incentive Management Fee 

 6.1 Incentive Management Fee – Stabilized Facilities. There shall be no Incentive Management Fee due or payable with respect to any Stabilized Facility for 2010 or 2011. Commencing with
2012 but subject to Section 6.2 and Section 6.3 below, an Incentive Management Fee (the “Incentive Management Fee”) shall be due and payable with respect to the Stabilized Facilities as provided in this
Section 6.1. At the end of each calendar year (commencing with 2012), after the reconciliations of Base Management Fees that are provided for in Section 5.3 hereof and subject to Section 6.3 below: 

(i) as to each Stabilized Facility located in the United States, (x) the amounts of the Gross Revenues, the ANOI and
the Incentive Fee Target for such calendar year and each such Stabilized Facility shall be translated into Canadian Dollars, using the Applicable Facility Translation Rate that is applicable to such Stabilized Facility, and (y) the Base
Management Fee for such calendar year and each such Stabilized Facility shall be translated into Canadian Dollars, using the Applicable Translation Rate; 
 (ii) such translated amounts of Gross Revenues, ANOIs, Incentive Fee Targets and Base Management Fees paid for such US Stabilized Facilities shall be added to the respective amounts of the Gross Revenues,
ANOIs, Incentive Fee Targets and Base Management Fees paid for such calendar year for Stabilized Facilities located in Canada; 
 (iii) fifteen percent (15%) of the amount, if any, by which the aggregated amount of such ANOIs, as determined in subsection (ii) above, exceeds the aggregated amount of such Incentive Fee
Targets, as determined in subsection (ii) above, shall be determined (such amount, not less than zero, is herein referred to as the “15% Calculation”); 

  
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 (iv) the amount, if any, by which seven percent (7%) of the aggregated
amount of such Gross Revenues, as determined in subsection (ii) above, exceeds the aggregated amount of such Base Management Fees, as determined in subsection (ii) above, shall be determined (such amount, not less than zero, is herein
referred to as the “7% Capped Calculation”; the lesser of the 15% Calculation and the 7% Capped Calculation is herein referred to as the “Translated Annual Incentive Management Fee”); and 

(v) if the Translated Annual Incentive Management Fee is a positive number, such amount, which shall have been calculated
in Canadian Dollars, shall be translated into US Dollars, using the Applicable Translation Rate as of the end of such calendar year, and Ventas SSL shall pay to Manager, as the Incentive Management Fee for such calendar year and in US Dollars, the
amount of such Translated Annual Incentive Management Fee (as so translated into US Dollars), on or before the February 15 that follows the end of such calendar year. 

6.2 Incentive Management Fee – Pre-Stabilized Facilities. No Incentive Management Fee shall be
payable with respect to any Pre-Stabilized Facility during any period on or prior to the end of the calendar year during which the first (1st) anniversary of the Expected Stabilization Date occurs (or, if the Expected Stabilization Date occurs on a
January 1, the end of the calendar year that includes the Expected Stabilization Date), and, solely for purposes of Section 6.1 hereof, during any such period relative to a particular Pre-Stabilized Facility, such Facility shall be
treated as if it was not a Stabilized Facility, notwithstanding that the Expected Stabilization Date may have occurred with respect thereto. 
 6.3 Certain Provisions Regarding Incentive Management Fees Upon Expiration or Termination of a Management Agreement. In the case of any Terminated Management Agreement, the Incentive
Management Fee calculations and payments referenced in this Section 6 for the calendar year that includes the Termination Effective Date that is applicable to such Terminated Management Agreement shall be affected as provided in this
Section 6.3. When the amount, if any, of the Incentive Management Fee is calculated at the end of the calendar year that includes such Termination Effective Date, such calculation shall include therein, for purposes of the various
calculations referenced in Section 6.1 hereof, the Gross Revenues and ANOI relative to the Terminated Facility to which such Terminated Management Agreement related through such Termination Effective Date, a prorated portion of the
Incentive Fee Target for such Terminated Facility for such calendar year through such Termination Effective Date and the reconciled-amount of the Base Management Fee relative to such Terminated Facility through such Termination Effective Date (as
calculated pursuant to Section 5.5 above), and, again for purposes of the aforesaid calculations, in the case of each Terminated Facility that is located in the United States, any Base Management Fees relating to such Terminated Facility
that have been paid in US Dollars shall be translated into Canadian Dollars using the Applicable Translation Rate and any of the aforesaid other amounts relating to such Terminated Facility that have been determined or paid in US Dollars shall be
translated into Canadian Dollars using the Applicable Facility Translation Rate that is applicable to such Terminated Facility. This Section 6.3 shall not apply in the case of a severance transaction of the nature described in
Section 7 hereof, as in such a severance transaction the Affected Management Agreement (as defined in Section 7 hereof) is not terminated. 

  
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	7.	Severance of Transferred Facility(ies) 

 7.1 Certain Definitions. For purposes of this Section 7: 

(a) Any Facility that ceases to be controlled, directly or indirectly, by any Ventas SSL Party, whether by sale or otherwise, is herein
referred to as a “Transferred Facility”; 
 (b) The Person that, upon the cessation of control by any Ventas SSL
Party as described in subsection (a) above, owns the fee simple or leasehold interest in a Transferred Facility that has so ceased to be controlled by a Ventas SSL Party is herein referred to as the “Successor Owner/Lessee”
(such Successor Owner/Lessee may be the same Person that was the owner of the aforesaid fee simple or leasehold interest if, for example, such Person is a limited liability company and the Ventas SSL Parties’ cessation of control resulted from
their sale to an unrelated third party of 100% of the membership interests in such limited liability company); 
 (c) If the
transaction that resulted in such cessation of control by any Ventas SSL Party also resulted in such a cessation of control relative to multiple Facilities, as to each of which the Successor Owner/Lessee is controlled, directly or indirectly, by the
same Person, (i) such Facilities are herein referred to collectively as the “Transferred Facilities” and (ii) such Person is herein referred to as the “Successor Parent Owner/Lessee” (and such Successor
Parent Owner/Lessee shall have the same rights and duties with respect to the Transferred Facility(ies) under the hereinafter described Severed Master Agreement as Ventas SSL has with respect to the Facilities under this Agreement, except as
otherwise set forth herein); 
 (d) The Management Agreement relating to a Transferred Facility (or, if applicable, each of such
Transferred Facilities) is herein referred to as the “Affected Management Agreement” and, if applicable, the Management Agreements relating to the Transferred Facilities are herein referred to collectively as the “Affected
Management Agreements”; and 
 (e) The term “control” (including, with correlative meanings, the terms
“controlling”, “controlled by”, and “under common control with”), as used in this Section 7 with respect to any Person, shall mean having the right to elect a majority of the board of
directors or other comparable body responsible for the management and direction of a Person, or otherwise having, directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, by contract or by
ownership of voting securities. 
 7.2 Severance of Transferred Facility(ies). If any Facility(ies) ceases to be
controlled, as described in Section 7.1 above, by any Ventas SSL Party and becomes a Transferred Facility(ies), the Affected Management Agreement(s) shall nevertheless continue in full force and effect between the applicable Manager and
the applicable Successor Owner/Lessee, but the following provisions shall take effect upon any such cessation (the date of 

  
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any such cessation relative to a particular Transferred Facility is herein referred to as the “Facility Cessation Date”): 

7.2.1. Provisions Relative to this Agreement. The following provisions shall, without further action of the
parties to this Agreement, take effect relative to this Agreement upon the Facility Cessation Date for a Transferred Facility(ies): 
 (a) The Transferred Facility(ies) shall, for all purposes of this Agreement, cease to be one of the “Facilities” under this Agreement and be treated as having “ceased to be managed under a
Management Agreement” (so that, for example, upon the Facility Cessation Date for such Transferred Facility(ies), (i) the Applicable Aggregate Limit would be reduced as provided in the definition of such term and (ii) the Controllable
Costs at the Transferred Facility(ies) would be excluded from the actual and budgeted Controllable Costs for the Facilities that continue to be governed by this Agreement (the Facilities that so continue to be governed by this Agreement are herein
referred to as the “Continuing Facilities”) for purposes of, for example, calculations under Section 3.4 hereof (but subject to the inclusion of the Former Facility-Controllable Costs Adjustments relative to such
Transferred Facility(ies), as described in Section 3.4 and Section 3.4.3 hereof); 
 (b) The Affected
Management Agreement(s) shall, for all purposes of this Agreement, cease to be one of the “Management Agreements” under this Agreement; 
 (c) The provisions of Section 7.2.3 hereof shall be effective and apply with respect to the Continuing Facilities; and 
 (d) If, following any Facility Cessation Date, the number of Facilities that are subject to Management Agreements under this Agreement is ten (10) or fewer, the provisions of Section 3.4
of this Agreement shall no longer apply to such Facilities after such Facility Cessation Date, and such Section 3.4, and references thereto, shall be deemed deleted from this Agreement; 

7.2.2. Provisions Relative to the Affected Management Agreement(s) and Transferred Facility(ies). The
following provisions shall take effect relative to the Affected Management Agreement(s) and Transferred Facility(ies) upon the Facility Cessation Date for a Transferred Facility(ies): 

(a) Contemporaneously with the Facility Cessation Date for such Transferred Facility(ies), Ventas SSL shall (i) notify SSLI of such
Facility Cessation Date and provide a list of the Transferred Facilities severed from this Agreement on such Facility Cessation Date, (ii) cause the applicable Successor Owner/Lessee of each Transferred Facility to assume all obligations of the
applicable “Owner” under the Affected Management Agreement relating to such Transferred Facility that arise from and after such Facility Cessation Date and (iii) cause the Successor Parent Owner/Lessee (or, if there is no such
Successor Parent Owner/Lessee, the applicable Successor Owner(s)/Lessee(s)) to enter into a separate, new Master 

  
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Agreement (herein, the “Severed Master Agreement”) with the parties to this Agreement (exclusive of Ventas SSL) on the same terms as this Agreement, with the Successor
Parent/Owner Lessee or Successor Owner(s)/Lessee(s), as applicable, having the same rights and obligations as Ventas SSL relative to the Transferred Facilities, except for the following changes and differences, any other changes or differences
required to conform the Severed Master Agreement for the Successor Owner(s)/Lessee(s)’ identity and organization type and such other changes upon which SSLI and the Successor Parent Owner/Lessee (or, if applicable, Successor Owner(s)/Lessee(s))
may agree: 
 (i) References to the “Facilities” shall mean the Transferred Facility (or, if
applicable, the Transferred Facilities); 
 (ii) References to the “Management Agreements” shall mean
the Affected Management Agreement (or, if applicable, the Affected Management Agreements); 
 (iii) Subject to
Section 7.2.3 hereof, references to the ANOI, ANOI Plus Applicable Previous Cure Payments, Expected ANOI, BMFEANOI Amount, Incentive Fee Target, Net Operating Income, Gross Revenues, Facility Expenses, Controllable Costs, Approved Budget
and other monetary terms or items shall, insofar as such terms are used in this Agreement with respect to a particular Facility, mean and refer to the aforesaid terms or items, calculated or determined with reference, or as they relate, to only the
Transferred Facility or Transferred Facilities, as applicable, so that the aforesaid terms or items shall, unless the context otherwise requires, carry over to the Severed Master Agreement, but without the inclusion therein of data or information
from any Facility other than the Transferred Facility(ies); 
 (iv) Without limitation of subsection
(vi) below relative to the Aggregate Cure Limit, insofar as Facility-level events occurring at the Transferred Facility(ies) prior to the applicable Facility Cessation Date would have had a Facility-level impact on such Transferred
Facility(ies) and the parties to this Agreement if not for the occurrence of such Facility Cessation Date, such events shall, pursuant to the Severed Master Agreement, carry over and continue to impact such Transferred Facility(ies) and the parties
to the Severed Master Agreement in the same manner after the Facility Cessation Date (for example, if, relative to a particular Transferred Facility and prior to the applicable Facility Cessation Date, Manager had (x) cured one
(1) Property Performance Termination Right, (y) made a Property Performance Cure payment several months prior to the Facility Cessation Date, and (z) with respect to the calendar year that includes the Facility Cessation Date,
received various calendar-year-to-date payments on account of the Base Management Fee, then, for purposes of the Severed Master Agreement, (1) such cure of a Property Performance Termination Right would count towards the
no-more-than-three-(3)-times-per-Stabilized-Facility limit set 

  
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forth in Section 3.2.2 of the Severed Master Agreement, (2) the additional revenue that, pursuant to Section 3.2.1 hereof, is deemed to have been received at such
Transferred Facility on account of Manager’s Property Performance Cure payment and with respect to periods prior to the Facility Cessation Date would continue to be counted as and to the extent provided in Section 3.2.1 of the
Severed Master Agreement with respect to Test Periods ending after the Facility Cessation Date but including periods prior to the Facility Cessation Date (for purposes of, for example, Section 3.2 of the Severed Master Agreement), and
(3) when the amount of the Base Management Fee is calculated at the end of such calendar year under Section 5 of the Severed Master Agreement and relating to the Transferred Facility(ies), the amounts of the aforesaid
calendar-year-to-date payments would be counted and reconciled at such year end, notwithstanding that such payments occurred prior to the Facility Cessation Date); 

(v) The initial Applicable Aggregate Limit, and the initial Applicable Cushion Amount, under the Severed Master Agreement
shall be equal to the respective amounts, expressed in US Dollars, by which the Applicable Aggregate Limit, and the Applicable Cushion Amount, under this Agreement were reduced as of the Facility Cessation Date, and, for purposes of
Section 3.4 of the Severed Master Agreement, at the end of the calendar year that includes the Facility Cessation Date (and assuming that no Transferred Facility has, following the Facility Cessation Date, ceased to be managed under a
Management Agreement for purposes of the Severed Master Agreement), the actual aggregate Controllable Costs for the Transferred Facility or the Transferred Facilities, as applicable, for such calendar year shall be compared to such initial
Applicable Aggregate Limit (for purposes of such comparison, in each case after first translating into US Dollars the amount of any actual Controllable Costs relative to any Transferred Facility(ies) located in Canada, using the Applicable
Translation Rate as of the end of such calendar year), in order to determine if an Aggregate Expense Termination Right has arisen under the Severed Master Agreement with respect to such calendar year; 

(vi) The Aggregate Cure Limit shall not apply to the Transferred Facility(ies), and references to the Aggregate Cure Limit
would be deleted from the Severed Master Agreement, but the limitations set forth in Section 3.5(b) of this Agreement shall also apply in the Severed Master Agreement; 

(vii) If, following any Facility Cessation Date, the number of Facilities that are subject to Management Agreements under
a Severed Master Agreement is ten (10) or fewer, the provisions of Section 3.4 shall not apply to the Transferred Facilities under such Severed Master Agreement, and the provisions and terms of Section 3.4, and
references thereto, shall be deleted from such Severed Master Agreement; 

  
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 (viii) The Severed Master Agreement shall apply only to the Transferred
Facility(ies) and shall not, except as the parties to such Severed Master Agreement may otherwise agree in writing, apply to any other facilities that may at any time be owned or leased by any Successor Owner/Lessee or Successor Parent Owner/Lessee
or any of their respective Affiliates and managed by any Manager or SSLI or any of their respective Affiliates (and, accordingly, for example, (x) the provisions of this Agreement relative to New Facilities and New Management Agreements would
be omitted from the Severed Master Agreement, and (y) if each Transferred Facility is a Stabilized Facility as of the Facility Cessation Date and has been such a Stabilized Facility for, for example, three (3) years preceding the Facility
Cessation Date, the provisions of this Agreement relative to Pre-Stabilized Facilities, and to Pre-Stabilized Facilities becoming Stabilized Facilities, would be omitted from the Severed Master Agreement); 

(ix) If the Successor Owner(s)/Lessee(s) and/or the Successor Parent Owner/Lessee, if applicable, or any of their
respective Affiliates is a real estate investment trust, Section 14 hereof shall be revised to provide to such Successor Owner(s)/Lessee(s) and the Successor Parent Owner/Lessee, if applicable, the same assurances and protections, in
substance, as are provided to Ventas, Inc. and Ventas SSL and their Affiliates by Section 14; and 

(x) The provisions of Section 7.2.3 hereof shall be effective and apply to the Transferred Facilities,

 and SSLI shall cause the parties to this Agreement (exclusive of Ventas SSL) to enter into the Severed Master Agreement; and

 (b) Each Affected Management Agreement shall be amended in the following respects (and Ventas SSL shall cause the Successor
Owner/Lessee of each Transferred Facility, and SSLI shall cause the applicable Manager of each such Transferred Facility, to enter into an instrument implementing the aforesaid amendments that is in form and substance reasonably acceptable to Ventas
SSL, the applicable Successor Owner/Lessee and the applicable Manager): 
 (i) References to the “Master
Agreement” shall mean the Severed Master Agreement, as it shall thereafter be amended, supplemented, restated or replaced; and 
 (ii) Each Affected Management Agreement shall otherwise be amended as may be necessary or appropriate to conform such Affected Management Agreement for the applicable Successor Owner/Lessee’s
identity and organization type or to incorporate any other changes thereto upon which Ventas SSL, the applicable Successor Owner/Lessee and the applicable Manager may agree. 

  
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 7.2.3. Adjustment of BMFEANOI Amounts, Incentive Fee Targets and
Shared Expenses Percentages. 
 (a) Effective upon the Facility Cessation Date for a Transferred Facility(ies), the
BMFEANOI Amount and Incentive Fee Target of each Transferred Facility that is subject to the Severed Master Agreement created as of such Facility Cessation Date, and of each Continuing Facility, shall be adjusted as follows: 

(i) In the case of any New Stabilized Facility or New Pre-Stabilized Facility (x) that is one of the Transferred
Facilities or of the Continuing Facilities and (y) as to which the applicable New Stabilized/Pre-Stabilized Facility Period has not ended as of such Facility Cessation Date (herein, an “Unadjusted Facility”), there shall be no
adjustment of its existing BMFEANOI Amount or existing Incentive Fee Target; 
 (ii) The BMFEANOI Amount of each
such Transferred Facility (other than any Unadjusted Facility), expressed in the Applicable Local Currency for such Transferred Facility, shall be adjusted to equal the product (rounded to the nearest whole number) of (x) the BMF Transferred
Facility Adjustment Factor related to such Facility Cessation Date, times (y) the BMFEANOI Amount of such Transferred Facility as of immediately prior to such Facility Cessation Date; 

(iii) The BMFEANOI Amount of each Continuing Facility (other than any Unadjusted Facility), expressed in the Applicable
Local Currency for such Continuing Facility, shall be adjusted to equal the product (rounded to the nearest whole number) of (x) the BMF Continuing Facility Adjustment Factor related to such Facility Cessation Date, times (y) the BMFEANOI
Amount of such Continuing Facility as of immediately prior to such Facility Cessation Date; 
 (iv) The Incentive
Fee Target of each such Transferred Facility (other than any Unadjusted Facility), expressed in the Applicable Local Currency for such Transferred Facility, shall be adjusted to equal the product (rounded to the nearest whole number) of (x) the
IMF Transferred Facility Adjustment Factor related to such Facility Cessation Date, times (y) the Incentive Fee Target of such Transferred Facility as of immediately prior to such Facility Cessation Date; and 

(v) The Incentive Fee Target of each Continuing Facility (other than any Unadjusted Facility), expressed in the Applicable
Local Currency for such Continuing Facility, shall be adjusted to equal the product (rounded to the nearest whole number) of (x) the IMF Continuing Facility Adjustment Factor related to such Facility Cessation Date, times (y) the Incentive
Fee Target of such Continuing Facility as of immediately prior to such Facility Cessation Date. 

  
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 As used in this subsection (a), the following terms shall have the following meanings (and,
in the case of each calculation referenced in the following definitions, any calculation relating to a Continuing Facility or Transferred Facility that is located in the United States shall be made after first translating the BMFEANOI Amount,
Incentive Fee Target or ANOI, as applicable, relating thereto into Canadian Dollars, using the Applicable Facility Translation Rate that is applicable to such Continuing Facility or Transferred Facility): 

“BMF Continuing Facility Adjustment Factor” related to a Facility Cessation Date shall mean the product (rounded to the
nearest one hundredth (1/100)) of (x) the BMF/IMF Continuing Facility Percentage, times (y) the quotient (rounded to the nearest one hundredth (1/100)) of (A) the sum of the BMFEANOI Amounts, as of immediately prior to such
Facility Cessation Date, for all Facilities that were subject to this Agreement as of such time (other than any Unadjusted Facility(ies)), divided by (B) the sum of the BMFEANOI Amounts, as of immediately prior to such Facility Cessation Date,
for all Facilities that will be Continuing Facilities following such Facility Cessation Date (other than any Unadjusted Facility(ies)). 
 “BMF/IMF Continuing Facility Percentage” related to a Facility Cessation Date shall mean the quotient (expressed as a percentage and rounded to the nearest one hundredth (1/100) of a
percent) of (x) the sum of the ANOIs for all Facilities that will be Continuing Facilities following such Facility Cessation Date (other than any Unadjusted Facility(ies)) for the Trailing Twelve Month Period, divided by (y) the sum of the
ANOIs for all Facilities (other than any Unadjusted Facility(ies)) for the Trailing Twelve Month Period. 
 “BMF/IMF
Transferred Facility Percentage” related to a Facility Cessation Date shall mean the quotient (expressed as a percentage and rounded to the nearest one hundredth (1/100) of a percent) of (x) the sum of the ANOIs for all
Transferred Facilities (other than any Unadjusted Facility(ies)) for the Trailing Twelve Month Period, divided by (y) the sum of the ANOIs for all Facilities (other than any Unadjusted Facility(ies)) for the Trailing Twelve Month Period.

 “BMF Transferred Facility Adjustment Factor” related to a Facility Cessation Date shall mean the product
(rounded to the nearest one hundredth (1/100)) of (x) the BMF/IMF Transferred Facility Percentage, times (y) the quotient (rounded to the nearest one hundredth (1/100)) of (A) the sum of the BMFEANOI Amounts, as of
immediately prior to such Facility Cessation Date, for all Facilities that were subject to this Agreement as of such time (other than any Unadjusted Facility(ies)), divided by (B) the sum of the BMFEANOI Amounts, as of immediately prior to such
Facility Cessation Date, for all Transferred Facilities (other than any Unadjusted Facility(ies)). 
 “IMF Continuing
Facility Adjustment Factor” related to a Facility Cessation Date shall mean the product (rounded to the nearest one hundredth (1/100)) of (x) the BMF Continuing Facility Percentage, times (y) the quotient (rounded to

  
 48 

 
the nearest one hundredth (1/100)) of (A) the sum of the Incentive Fee Targets, as of immediately prior to such Facility Cessation Date, for all Facilities that were subject to this
Agreement as of such time (other than any Unadjusted Facility(ies)), divided by (B) the sum of the Incentive Fee Targets, as of immediately prior to such Facility Cessation Date, for all Facilities that will be Continuing Facilities following
such Facility Cessation Date (other than any Unadjusted Facility(ies)). 
 “IMF Transferred Facility Adjustment
Factor” related to a Facility Cessation Date shall mean the product (rounded to the nearest one hundredth (1/100)) of (x) the BMF Transferred Facility Percentage, times (y) the quotient (rounded to the nearest one hundredth
(1/100)) of (A) the sum of the Incentive Fee Targets, as of immediately prior to such Facility Cessation Date, for all Facilities that were subject to this Agreement as of such time (other than any Unadjusted Facility(ies)), divided by
(B) the sum of the Incentive Fee Targets, as of immediately prior to such Facility Cessation Date, for all Transferred Facilities (other than any Unadjusted Facility(ies)). 

“Trailing Twelve Month Period” shall mean the twelve (12) month period ending on the last day of the month preceding
the Facility Cessation Date. 
 (b) Effective upon the Facility Cessation Date for a Transferred Facility(ies), the Shared
Expenses Percentage for the Severed Master Agreement created as of such Facility Cessation Date, and for this Agreement, shall, instead of 1.20% or any other percentage previously determined to be the Shared Expenses Percentage in accordance with
this subsection (b), be the percentage calculated as follows: 
 (i) The Shared Expenses Percentage for this
Agreement shall be changed to equal the product (rounded to the nearest one hundredth (1/100) of a percent) of (x) the Shared Expenses Continuing Facilities Factor related to such Facility Cessation Date, times (y) the Shared Expenses
Percentage under this Agreement as of immediately prior to such Facility Cessation Date; and 
 (ii) The Shared
Expenses Percentage for such Severed Master Agreement shall be changed to equal the product (rounded to the nearest one hundredth (1/100) of a percent) of (x) the Shared Expenses Transferred Facilities Factor related to such Facility
Cessation Date, times (y) the Shared Expenses Percentage under this Agreement as of immediately prior to such Facility Cessation Date; and 
 As used in this subsection (b), the following terms shall have the following meanings (and, in the case of each calculation referenced in the following definitions, any calculation relating to a
Continuing Facility or Transferred Facility that is located in Canada shall be made after first translating the Shared Expenses, Gross Revenues or Shared Expenses credits-back, as applicable, 

  
 49 

 
relating thereto into US Dollars, using the Applicable Translation Rate as of such Facility Cessation Date): 
 “Applicable Period” related to a Facility Cessation Date shall mean the last full calendar year ended immediately prior to such Facility Cessation Date. 

“All Facilities Actual Percentage” shall mean the quotient (expressed as a percentage and rounded to the nearest one
hundredth (1/100) of a percent) of (x) the sum of the Shared Expenses for the Applicable Period for All Facilities that were subject to this Agreement immediately prior to such Facility Cessation Date, calculated without any reduction(s)
thereof on account of Shared Expenses credits-back that were allocated to such Facilities for any month(s) of such Applicable Period pursuant to Section 4 of this Agreement, divided by (y) the sum of the Gross Revenues for all such
Facilities during the Applicable Period. 
 “Continuing Facilities Actual Percentage” shall mean the quotient
(expressed as a percentage and rounded to the nearest one hundredth (1/100) of a percent) of (x) the sum of the Shared Expenses for the Applicable Period for all Continuing Facilities, calculated without any reduction(s) thereof on account
of Shared Expenses credits-back that were allocated to such Continuing Facilities for any month(s) of such Applicable Period pursuant to Section 4 of this Agreement, divided by (y) the sum of the Gross Revenues for all Continuing
Facilities during the Applicable Period. 
 “Shared Expenses Continuing Facilities Factor” shall mean the
quotient (rounded to the nearest one hundredth (1/00)) of (x) the Continuing Facilities Actual Percentage, divided by (y) the All Facilities Actual Percentage. 
 “Shared Expenses Transferred Facilities Factor” shall mean the quotient (rounded to the nearest one hundredth (1/00)) of (x) the Transferred Facilities Actual Percentage,
divided by (y) the All Facilities Actual Percentage. 
 “Transferred Facilities Actual Percentage” shall
mean the quotient (expressed as a percentage and rounded to the nearest one hundredth (1/100) of a percent) of (x) the sum of the Shared Expenses for the Applicable Period for all Transferred Facilities, calculated without any reduction(s)
thereof on account of Shared Expenses credits-back that were allocated to such Transferred Facilities for any month(s) of such Applicable Period pursuant to Section 4 of this Agreement, divided by (y) the sum of the Gross Revenues
for all Transferred Facilities during the Applicable Period. 
 (c) The adjustments and changes that are referenced in
subsections (a) and (b) above shall be effective upon the applicable Facility Cessation Date, but shall also affect the Base Management Fee, the Incentive Management Fee and the Shared Expenses credits-back, under this Agreement and the
Severed Master Agreement, prior to such Facility Cessation Date in the manner illustrated by, or stated in, the example below. To illustrate such affect, assume that (i) from January 1, 2013 through April 15, 2013, there were four
(4) Stabilized Facilities under 

  
 50 

 
Management Agreements and this Agreement (Facilities A, B, C and D, all located in Canada), (ii) on April 15, 2013, a Severed Master Agreement was entered into with respect to
Facilities C and D, as Transferred Facilities, (iii) the Applicable BMF Percentage for 2012 was 5.50%, (iv) the estimated Applicable BMF Percentage for Facilities A, B, C and D as of March 31, 2013 was 5.75%, as calculated under the
terms of this Agreement and using BMFEANOI Amounts that had not been adjusted due to the transaction that resulted in the aforesaid Severed Master Agreement, and (v) the Shared Expenses Percentage that was in effect prior to the Facility
Cessation Date of April 15, 2013 was 1.2%, and, pursuant to subsection (b) above, on April 15, 2013, such Shared Expenses Percentage was changed to 1.30% relative to this Agreement and Facilities A and B and to 1.10% relative to the
Severed Master Agreement and Facilities C and D. In such event: 
 (1) The estimated amounts of the Base Management Fee for each
of Facilities A, B, C and D for each of January, 2013 and February, 2013 shall be based upon the Gross Revenues at such Facility and the 5.50% Applicable BMF Percentage for 2012, pursuant to the terms of Section 5.3(b)(i) of this
Agreement; 
 (2) The estimated Applicable BMF Percentage that is to be used for purposes of calculating the estimated amounts of
the Base Management Fee for each of Facilities A, B, C and D for the calendar-year-to-date through March 31, 2013 shall be based upon the calendar-year-to-date ANOIs and unadjusted BMFEANOI Amounts for Facilities A, B, C and D, and, using such
percentage, the Base Management Fee for each of Facilities A, B, C and D shall be reconciled as provided in Section 5.3 of this Agreement through March 31, 2013 (by assumption, such Applicable BMF Percentage as of March 31,
2013 is equal to 5.75%); 
 (3) The estimated amounts of the Base Management Fee for each of Facilities A and B for each of
April, 2013 and May, 2013 shall be based upon the Gross Revenues at such Facility and the 5.75% Applicable BMF Percentage as of March 31, 2013, pursuant to the terms of Section 5.3(b)(ii) of this Agreement (i.e., as provided in this
subsection (3) and in subsection (4) below, the estimated Applicable BMF Percentage that is calculated under Section 5.3(b)(ii) of the Agreement as of the end of the calendar quarter that precedes the calendar quarter that
includes the Facility Cessation Date (or, if the Facility Cessation Date occurs during the period from January 1 through March 30 of any year, is calculated under Section 5.3(b)(i) of this Agreement for the preceding calendar
year) shall be used for the two (2) months that follow such preceding calendar quarter (or, if applicable, preceding calendar year) to calculate estimated Base Management Fees for such months under this Agreement and the Severed Master
Agreement, notwithstanding that such estimated Applicable BMF Percentage was calculated using unadjusted BMFEANOI Amounts); 

(4) The estimated amounts of the Base Management Fee for each of Facilities C and D for each of April, 2013 and May, 2013 shall be based
upon the Gross Revenues at such Facility and the 5.75% Applicable BMF Percentage as of 

  
 51 

 
March 31, 2013, pursuant to the terms of Section 5.3(b)(ii) of the Severed Master Agreement; 
 (5) At the end of June, 2013, the estimated Applicable BMF Percentage that is to be used for purposes of calculating the estimated amounts of the Base Management Fee for each of Facilities A and B for the
calendar-year-to-date through June 30, 2013 shall be based upon the calendar-year-to-date ANOIs at Facilities A and B and the calendar-year-to-date adjusted BMFEANOI Amounts for Facilities A and B (if, for example, the unadjusted BMFEANOI
Amounts for Facilities A and B equaled, respectively, $100,000.00 and $102,000.00, and the adjusted BMFEANOI Amounts for Facilities A and B equaled $103,000.00 and $105,060.00, the calendar-year-to-date amounts of the adjusted BMFEANOI Amounts for
Facilities A and B would equal, respectively, $51,500.00 and $52,530.00 (i.e., in effect, as provided in this subsection (5) and in subsection (6) below, the adjusted BMFEANOI Amount is treated as applying during the partial calendar year
that precedes the Facility Cessation Date for purposes of quarter-end (and year-end) calculations of the Applicable BMF Percentage under Section 5.3 of this Agreement that occur on or after the Facility Cessation Date)); 

(6) At the end of June, 2013, the estimated Applicable BMF Percentage that is to be used for purposes of calculating the estimated amounts
of the Base Management Fee for each of Facilities C and D for the calendar-year-to-date through June 30, 2013 shall be based upon the calendar-year-to-date ANOIs at Facilities C and D and the calendar-year-to-date adjusted BMFEANOI Amounts for
Facilities C and D (if, for example, the unadjusted BMFEANOI Amounts for Facilities C and D equaled, respectively, $100,000.00 and $102,000.00, and the adjusted BMFEANOI Amounts for Facilities C and D equaled $98,000.00 and $99,960.00, the
calendar-year-to-date amounts of the adjusted BMFEANOI Amounts for Facilities C and D would equal, respectively, $49,000.00 and $49,980.00); 
 (7) When the Incentive Management Fee is calculated (x) at the end of 2013, (y) with respect to Facilities A and B and (z) under this Agreement, the references in Section 6.1
and Section 6.3 of this Agreement to the “Incentive Fee Targets” shall refer to the adjusted Incentive Fee Targets for Facilities A and B (i.e. in effect, as provided in this subsection (7) and in subsection
(8) below, the adjusted Incentive Fee Targets are treated as applying during the partial calendar year that precedes the Facility Cessation Date for purposes of the year-end calculation of the Incentive Management Fee for 2013) (in the event
that, for example, Facility A became a Terminated Facility during 2013, for purposes of Section 6.3 of this Agreement, references therein to the Incentive Fee Target for such Terminated Facility would refer to the unadjusted Incentive
Fee Target (if the Termination Effective Date for Facility A preceded the Facility Cessation Date) and to the adjusted Incentive Fee Target (if the Termination Effective Date for Facility A was on or after the Facility Cessation Date)); 

(8) When the Incentive Management Fee is calculated (x) at the end of 2013, (y) with respect to Facilities C and D and
(z) under the Severed Master 

  
 52 

 
Agreement, the references in Section 6.1 and Section 6.3 of the Severed Master Agreement to the “Incentive Fee Targets” shall refer to the adjusted Incentive Fee
Targets for Facilities C and D; 
 (9) For each of January, February and March of 2013, the calendar-year-to-date determinations
relating to Shared Expenses at Facilities A, B, C and D that are described in Section 4 of this Agreement shall be made using the unadjusted Shared Expenses Percentage of 1.2%; 

(10) For April and each subsequent month of 2013, the calendar-year-to-date determinations relating to Shared Expenses at Facilities A and
B that are described in Section 4 of this Agreement shall be made using 1.30% as the Shared Expenses Percentage for such month, and all preceding months of 2013, and, if any Shared Expenses credit-back is required for a particular month
that includes, or is after, the Facility Cessation Date, such credit-back shall reduce the Facility Expenses for such month (e.g., if a Shared Expenses credit-back is required under this Agreement for April, 2013, none of such Shared Expenses
credit-back shall be treated as affecting the Facility Expenses at Facilities A and B for any prior month of such calendar year (including months prior to the month that includes the Facility Cessation Date)); and 

(11) For April and each subsequent month of 2013, the calendar-year-to-date determinations relating to Shared Expenses at Facilities C and
D that are described in Section 4 of the Severed Master Agreement shall be made using 1.10% as the Shared Expenses Percentage for such month, and all preceding months of 2013, and, if any Shared Expenses credit-back is required for a
particular month that includes, or is after, the Facility Cessation Date, such credit-back shall reduce the Facility Expenses for such month (e.g., if a Shared Expenses credit-back is required under the Severed Master Agreement for April, 2013, none
of such Shared Expenses credit-back shall be treated as affecting the Facility Expenses at Facilities C and D for any prior month of such calendar year (including months prior to the month that includes the Facility Cessation Date)). 

7.2.4. Transition. Relative to any Transferred Facility, Manager shall be compensated for its services
relative to such Transferred Facility by the applicable Ventas SSL Party that was the Owner under the Affected Management Agreement only through the applicable Facility Cessation Date, and Manager shall thereafter look to the applicable Successor
Owner/Lessee for such compensation and performance of the obligations of such Owner that relate to such Transferred Facility and arise after the applicable Facility Cessation Date (and Ventas SSL and such Owner (unless such Owner is the Successor
Owner/Lessee) shall be released from liability for any such post-Facility Cessation Date compensation or performance). Further, in the event this Section 7 becomes applicable to any Transferred Facility(ies), each of Ventas SSL, Manager
and SSLI shall fully cooperate with one another and with the applicable Successor Owner(s)/Lessee(s) and, if applicable, the Successor Parent Owner/Lessee to ensure a smooth transition of ownership relative to the affected Transferred Facility(ies).
Manager’s and SSLI’s cooperation activities shall include, without limitation: 

  
 53 

 (a) cooperating in connection with complying with any Legal Requirements that may be
applicable to the transfer of the applicable Transferred Facility(ies) to the Successor Owner(s)/Lessee(s), including transferring any license and/or certificate (or obtaining a new license and/or certificate, if necessary) required in connection
with the operation of the applicable Transferred Facility(ies), but Manager and SSLI shall not be required to incur any monetary expenditures in connection therewith (unless the applicable Ventas SSL Party or the applicable Successor Owner/Lessee
agrees to reimburse Manager or SSLI, as applicable, for the same); and 
 (b) providing such estoppel certificates relative to
this Agreement (and the Management Agreements thereunder) and the Severed Master Agreement (and the Affected Management Agreement(s) thereunder) and/or additional instruments as Ventas SSL or any other Ventas SSL Party, the Successor
Owner(s)/Lessee(s) and/or the Successor Parent Owner/Lessee may reasonably request to fully effectuate the severance of the Transferred Facility(ies) and Affected Management Agreement(s) that is described in, and/or the provisions and intent of,
this Section 7. 
 In connection with any such transition, Manager shall deliver to the applicable Ventas SSL Party as soon as
reasonably possible, but not later than ninety (90) days after the Facility Cessation Date, a final accounting, reflecting the balance of income and expenses of the applicable Transferred Facility(ies) as of the applicable Facility Cessation
Date, and any balance of monies of the applicable Ventas SSL Party that is held by Manager with respect to the applicable Transferred Facility(ies). 
 7.3 Certain Provisions Regarding Transfer. Notwithstanding anything to the contrary in this Agreement, Ventas SSL agrees that Paragraph 7 of the January 14, 2007 Letter Agreement is
applicable to any transfers of a Facility by Ventas SSL, and further agrees, and each Severed Master Agreement shall provide, that any Transferred Facility may be transferred only in compliance with the provisions of Paragraph 7 of the
January 14, 2007 Letter Agreement, which Paragraph 7 Ventas SSL acknowledges and agrees is applicable and is in full force and effect as of the Agreement Date notwithstanding the sale of the Seller Interests pursuant to the Purchase and
Sale Agreement. 
  

	8.	Representations of US Manager and CAN Manager (Internal Controls) 

 8.1 Manager will at all times maintain appropriate and proper accounting systems, books of account and records on a Facility-by-Facility, and all Facilities, basis and relating to all transactions
entered into in the performance of its obligations under the Management Agreements and this Agreement. Manager will maintain appropriate internal controls over financial reporting in connection with its duties, obligations and services provided
under the Management Agreements and this Agreement and, at the request of any Owner, will provide appropriate documentation with respect to the nature of, and existence, of such internal controls over financial reporting. Without in any way limiting
the foregoing, Manager will also maintain, on a Facility-by-Facility basis, and a portfolio-wide basis, appropriate business interruption and disaster recovery controls, procedures and systems. Each Owner will have the right, at such Owner’s
expense and through any agents or employees designated by such Owner or by any 

  
 54 

 
independent public accountants or chartered accountants designated by such Owner, at reasonable times to inspect the Facilities and the books and records maintained by Manager or to cause an
inspection to be made and to make copies of or extracts from the books of account and records or to perform such investigations or procedures relative to Manager’s internal controls over financial reporting as such Owner reasonably deems
appropriate. In addition, Manager will provide promptly to the Owners copies of any electronic and computer records and disks that may be reasonably requested by any Owner from time to time. Manager will, in addition to the applicable Approved
Budget and accounting information specified in the Management Agreements or this Agreement, supply, at any Owner’s request, such Owner with such additional information reasonably required by such Owner, at such Owner’s expense. Manager
agrees that, as and when required by any Owner in order to permit it and its management to comply with Legal Requirements, Manager will, to the extent reasonably required, cooperate with, and assist, any Owner in respect of the foregoing. In that
regard, Manager will supply, on request, such written representations by Manager to the best of its knowledge and belief as such Owner may reasonably request in connection with Manager’s internal controls over financial reporting on a
portfolio-wide basis, including (a) the absence of significant deficiencies or material weaknesses in the design or operation of such internal controls over financial reporting which are reasonably likely to adversely affect Manager’s
ability to record, process, summarize and report information to such Owner as required by such Owner for such Owner’s own internal controls over financial reporting; (b) the absence of material changes to, or violations of, Manager’s
internal controls over financial reporting; and (c) the absence of any fraud, whether or not material, that involves management or any employees of Manager who have a significant role in Manager’s internal controls over financial
reporting. At any time should Manager become aware of items described in (a), (b) and (c) above, Manager will notify the applicable Owner immediately. All books, records, reports or other papers maintained by Manager in connection with its
duties, obligations and services provided under this Agreement or the Management Agreements will be maintained by Manager, and shall not be destroyed, within six (6) years of the making thereof without the prior written approval of the Owners.
It is acknowledged and agreed that the requests, reports and representations referenced above, if requested by Ventas SSL, will be provided to Ventas SSL, at Ventas SSL’s expense. 

8.2 If any of the reports required by this Section 8 are not furnished on a timely basis, and Manager does not provide
the same within ten (10) Business Days after notice from Owner thereof, Owner shall have the right, at Manager’s expense, to cause the books and records of Manager relating to the affected Facility(ies) to be audited; provided,
however, that the foregoing right shall be in addition to, and not in lieu of, any other right or remedy available to Owner under this Agreement or the Management Agreements. Manager shall promptly correct all accounting method deficiencies and
errors disclosed by Owner’s audits and shall timely inform Owner of all corrective actions taken. Except as set forth above, Owner’s audit shall be at Owner’s expense unless an error on the part of Manager or its accountant is
discovered which affects Owner adversely and is equal to or greater than five percent (5%) of the greater of gross Facility Expenses or Gross Revenues for the most recent twelve (12) month period, in which case Manager shall bear the
reasonable cost of the audit. 
 8.3 Each Manager and SSLI hereby covenants and agrees to provide reasonable co-operation
and assistance to Ventas SSL and its Affiliates in order to enable them to prepare their 

  
 55 

 
respective or consolidated financial statements and other financial reports in accordance with GAAP. 
  

	9.	Representations and Warranties of US Manager 

 9.1 US Manager is a corporation, duly organized and validly existing under the laws of the Commonwealth of Virginia, and, to the extent necessary, duly qualified to do business in each of the
states in which a Facility is located, with the full power and authority and legal right to carry on its business in the manner and in the locations in which such business has been and is now being conducted by it, to execute and deliver this
Agreement and each Management Agreement to which it is a party and to perform its obligations hereunder and thereunder. 

9.2 No consent of any third party is required as a condition to the entering into of this Agreement by US Manager and each
Management Agreement to which it is a party other than such consent as has been previously obtained. 
 9.3 US Manager
has authorized the execution and delivery of this Agreement and each Management Agreement to which it is a party and each of this Agreement and each Management Agreement to which it is a party constitutes the valid and binding obligation and
agreement of US Manager, enforceable in accordance with its terms (subject to the effect of bankruptcy, insolvency or creditor’s rights generally, and to limitations imposed by general principles of equity). 

9.4 Neither the execution and delivery of this Agreement and each Management Agreement to which it is a party, nor compliance with
the terms and provisions hereof or thereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any Facility or the
assets of US Manager pursuant to the terms of, any indenture, mortgage, deed of trust, note, evidence of indebtedness, agreement or other instrument to which US Manager or any Affiliate thereof may be party or by which it or they or any of its or
their properties or assets may be bound, or violate any provision of law, or any applicable order, writ, injunction, judgment or decree of any court, or any order or other public regulation of any governmental commission, bureau or administrative
agency. 
 9.5 No order, permission, consent, approval, license, authorization, registration or validation of, or filing
with, or exemption by, any governmental agency, commission, board or public authority is required to authorize, or is required in connection with the execution, delivery and performance by US Manager of this Agreement or any Management Agreement to
which it is a party or the taking of any action hereby or thereby contemplated, which has not been obtained. 
  

	10.	Representations and Warranties of CAN Manager 

 10.1 CAN Manager is a corporation, duly organized and validly existing under the laws of the Province of New Brunswick and, to the extent necessary, duly qualified to do business in each of the
jurisdictions in which a Facility is located, with the full power and authority and legal right to carry on its business in the manner and in the locations in which such business has been and is now being conducted by it, to execute and deliver this
Agreement and 

  
 56 

 
each Management Agreement to which it is a party and to perform its obligations hereunder and thereunder. 
 10.2 No consent of any third party is required as a condition to the entering into of this Agreement by CAN Manager and each Management Agreement to which it is a party other than such consent as
has been previously obtained. 
 10.3 CAN Manager has authorized the execution and delivery of this Agreement and each
Management Agreement to which it is a party and each of this Agreement and each Management Agreement to which it is a party constitutes the valid and binding obligation and agreement of CAN Manager, enforceable in accordance with its terms (subject
to the effect of bankruptcy, insolvency or creditor’s rights generally, and to limitations imposed by general principles of equity). 
 10.4 Neither the execution and delivery of this Agreement or any Management Agreement to which it is a party, nor compliance with the terms and provisions hereof or thereof, will result in any
breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any Facility or the assets of CAN Manager pursuant to the terms of, any indenture,
mortgage, deed of trust, note, evidence of indebtedness, agreement or other instrument to which CAN Manager or any Affiliate thereof may be party or by which it or they or any of its or their properties or assets may be bound, or violate any
provision of law, or any applicable order, writ, injunction, judgment or decree of any court, or any order or other public regulation of any governmental commission, bureau or administrative agency. 

10.5 No order, permission, consent, approval, license, authorization, registration or validation of, or filing with, or exemption
by, any governmental agency, commission, board or public authority is required to authorize, or is required in connection with the execution, delivery and performance by CAN Manager of this Agreement or any Management Agreement to which it is a
party or the taking of any action hereby or thereby contemplated, which has not been obtained. 
  

	11.	Representations and Warranties of SSLI 

 11.1 SSLI is a corporation duly organized and validly existing under the laws of the State of Delaware, with full power and authority and legal right to carry on its business in the manner and in
the locations in which such business has been and is now being conducted by it, to execute and deliver this Agreement and to perform its obligations hereunder. 
 11.2 No consent of any third party is required as a condition to the entering into of this Agreement by SSLI other than such consent as has been previously obtained. 

11.3 SSLI has authorized the execution and delivery of this Agreement and this Agreement constitutes the valid and binding
obligation and agreement of SSLI, enforceable in accordance with its terms (subject to the effect of bankruptcy, insolvency or creditor’s rights generally, and to limitations imposed by general principals of equity). 

  
 57 

 11.4 Neither the execution and delivery of this Agreement, nor compliance with the
terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the property or assets of SSLI
pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness, agreement or other instrument to which SSLI or any Affiliate thereof may be party or by which it or they or any of its or their properties or assets may
be bound, or violate any provision of law, or any applicable order, writ, injunction, judgment or decree of any court, or any order or other public regulation of any governmental commission, bureau or administrative agency. 

11.5 No order, permission, consent, approval, license, authorization, registration or validation of, or filing with, or exemption
by, any governmental agency, commission, board or public authority is required to authorize, or is required in connection with the execution, delivery and performance by SSLI of this Agreement or the taking of any action hereby contemplated, which
has not been obtained. 
  

	12.	Representations and Warranties of Ventas SSL 

 12.1 Ventas SSL is a corporation duly organized and validly existing under the laws of the State of Delaware, with full power and authority and legal right to carry on its business in the manner
and in the locations in which such business has been and is now being conducted by it, to execute and deliver this Agreement and to perform its obligations hereunder. 
 12.2 No consent of any third party is required as a condition to the entering into of this Agreement by Ventas SSL other than such consent as has been previously obtained. 

12.3 Ventas SSL has authorized the execution and delivery of this Agreement and this Agreement constitutes the valid and binding
obligation and agreement of Ventas SSL, enforceable in accordance with its terms (subject to the effect of bankruptcy, insolvency or creditor’s rights generally, and to limitations imposed by general principals of equity). 

12.4 Neither the execution and delivery of this Agreement, nor compliance with the terms and provisions hereof, will result in any
breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the property or assets of Ventas SSL pursuant to the terms of any indenture,
mortgage, deed of trust, note, evidence of indebtedness, agreement or other instrument to which Ventas SSL or any Affiliate thereof may be party or by which it or they or any of its or their properties or assets may be bound, or violate any
provision of law, or any applicable order, writ, injunction, judgment or decree of any court, or any order or other public regulation of any governmental commission, bureau or administrative agency. 

12.5 No order, permission, consent, approval, license, authorization, registration or validation of, or filing with, or exemption
by, any governmental agency, commission, board or public authority is required to authorize, or is required in connection with the execution, delivery and performance by Ventas SSL of this Agreement or the taking of any action hereby contemplated,
which has not been obtained. 
  

	13.	Miscellaneous 

  
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 13.1 Notices. Any and all notices, demands, consents, approvals, offers,
elections, reports, designations or information, responses and other communications required or permitted under this Agreement (collectively, “notices”) shall be governed by the notice provisions set forth in the Management
Agreements; provided, however, that all such notices shall be in writing and be addressed: 
 If to US Manager or CAN
Manager, to: 
 Sunrise Senior Living Management, Inc. or Sunrise North Senior Living Ltd., as applicable 

c/o Sunrise Senior Living Management, Inc. 
 7900 Westpark Drive, Suite T-900 
 McLean, Virginia 22102 

Attention: General Counsel 
 Telecopier: (703) 744-1628 
 with a copy to: 

Fried, Frank, Harris, Shriver & Jacobson LLP 
 One New York Plaza 
 New York, New York 20001 

Attention:  Paul M. Reinstein, Esq. 
                    Richard A. Steinwurtzel, Esq. 

Telecopier: (212) 859-4000 
 If to SSLI, to: 
 Sunrise Senior Living, Inc. 

7900 Westpark Drive, Suite T-900 
 McLean, Virginia 22102 
 Attention: General Counsel 

Telecopier: (703) 744-1628 
 with a copy to: 
 Fried, Frank, Harris, Shriver & Jacobson LLP 

One New York Plaza 
 New York, New York 20001 
 Attention:  Paul M. Reinstein, Esq.

                    Richard A.
Steinwurtzel, Esq. 
 Telecopier: (212) 859-4000 

  
 59 

 If to any Ventas SSL Party, to: 

c/o Ventas Realty, Limited Partnership 
 111 South Wacker Drive 
 Suite 4800 

Chicago, Illinois 60606 
 Attn: Asset Manager 
 Telecopier: (312) 660-3850 

with a copy to: 

c/o Ventas, Inc. 

10350 Ormsby Park Place, Suite 300 
 Louisville, Kentucky 40223 
 Attention: General Counsel 

Telecopier: (502) 357-9001 
 with a copy to: 
 Barack Ferrazzano Kirschbaum & Nagelberg LLP 

200 West Madison Street, Suite 3900 
 Chicago, Illinois 60606 
 Attention: Douglas W. Anderson, Esq. 

Telecopier: (312) 984-3150 

or to such other address and to the attention of such other person as any party may from time to time designate in writing to the other non-affiliated
parties hereto. Refusal to accept delivery shall constitute receipt. Whenever under this Agreement a notice is required to be delivered, or an action is required to be taken, on a day which is not a Business Day or is required to be delivered, or an
action is required to be taken, not later than a specific day which is not a Business Day, the day of required delivery or required action shall automatically be extended to the next Business Day; provided, however, that the provisions of
this sentence shall not apply insofar as they conflict with the proviso (relating to limited grace periods under Section 14.1(a)(v) of the Management Agreements) contained in Section 18.8 of the Management Agreements. Any receipt of notice
after the recipient’s normal business hours shall be deemed to have been received on the next Business Day. 
 13.2
Amendments. No modifications, changes, amendments or additions to this Agreement shall be recognized or enforceable unless and until made in writing and signed by the parties hereto. The parties to this Agreement acknowledge and agree
that (a) “REIT”, “Canadian LP”, “Aurora LP”, “UPREIT” and “US Co” (as such terms are defined in the Existing Master Agreement), who were parties to the Existing Master Agreement, have either
been dissolved or no longer hold interests in the Facilities that necessitate their joining in this Agreement amending and restating the Existing Master Agreement and (b) this Agreement is binding on the parties hereto, notwithstanding the
removal of such former parties from this Agreement. 

  
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 13.3 Interpretation. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia without regard to the principles of conflicts of law. Any dispute arising in connection with this Agreement shall be resolved in a court of competent jurisdiction, and each party hereby
submits to the jurisdiction of that court. Each party hereby waives its right to trial by jury in connection with any dispute between any of the parties to this Agreement arising out of this Agreement or the rights or obligations of the parties
hereunder. The titles of the Articles and Sections in this Agreement are for convenience only and shall not be considered in construing this Agreement. Pronouns used herein shall be construed to refer to the masculine, feminine, neuter, singular
and plural as the identity of the individual or entity referred to may require. No provision of this Agreement shall be interpreted as bestowing any rights whatsoever upon any third party. A cross reference to another section shall be deemed to be
to such section of this Agreement, unless explicitly stated otherwise. Unless the context otherwise requires, reference herein to a particular Section shall refer also to the subsections of such Section (e.g., a reference to Section 3
shall refer also to Sections 3.1, 3.1.1, 3.1.2, 3.2, etc., and a reference to Section 3.1 shall refer also to Sections 3.1.1 and 3.1.2). 
 13.4 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original. 

13.5 Severability. If any provision of this Agreement is determined to be unenforceable for any reason, it shall be
adjusted rather than voided, if possible, to achieve the intent of the parties. In any event, all other provisions shall be deemed valid and enforceable to the greatest possible extent. 

13.6 Binding on Successors; Assignment. The rights and obligations of the parties under this Agreement shall bind their
respective successors and assigns and shall inure to the benefit of their successors and permitted assigns. This Agreement may not be assigned by SSLI or any Manager. Ventas SSL may assign, and any assignee of this Agreement may assign, its rights
under this Agreement only in compliance with the provisions of Paragraph 7 of the January 14, 2007 Letter Agreement, which Paragraph 7 Ventas SSL acknowledges and agrees is applicable and is in full force and effect as of the
Agreement Date notwithstanding the sale of the Seller Interests pursuant to the Purchase and Sale Agreement. 
 13.7
Confidentiality. The provisions as to confidentiality in the Management Agreements shall apply to the parties hereto as if such provisions were expressly set forth herein. 

13.8 Time is of the Essence. Time is of the essence with respect to all time or notice deadlines set forth herein;
provided, however, this provision shall not affect the rights of any defaulting party hereunder to cure such default within the time periods (if any) explicitly set forth herein, if and as so permitted pursuant to the terms of
this Agreement. 
 13.9 Taxes. All payments hereunder or under any Management Agreement shall be made subject to
any withholding required by applicable law and shall be exclusive of tax payable under Part IX of the Excise Tax Act (Canada), if applicable. 

  
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	14.	REIT Compliance 

Each of SSLI, US Manager and CAN Manager hereby agrees, for itself and its Affiliates, to comply with the provisions of this
Section 14 (the “REIT Compliance Requirements”) as follows: 
 (a) It shall, at any time and from
time to time, cooperate, and cause its Affiliates to cooperate, with Ventas SSL, Ventas, Inc. and their respective Affiliates to effectuate structural changes in the arrangements between (i) SSLI, US Manager and CAN Manager and their respective
Affiliates and (ii) Ventas SSL, Ventas, Inc. and their respective Affiliates that address the United States real estate investment trust (“REIT”) tax concerns of Ventas, Inc. and its Affiliates, provided that SSLI, US Manager
and CAN Manager shall not be required to take any action under this subsection (a) if such action would have an adverse impact on the aggregate amount of, or the manner in which SSLI and its Affiliates would be required to account for, the
Management Fees unless Ventas SSL agrees to bear the cost of such impact. For example, if requested by Ventas SSL, SSLI, US Manager and CAN Manager shall cooperate with Ventas SSL, Ventas, Inc. and their respective Affiliates to modify the Existing
Ventas/Sunrise Agreements (as defined in Section 18.2 below), this Agreement and/or the Restated Management Agreements in order for Ventas, Inc. and its Affiliates to comply with the requirements of the Code applicable to a REIT and
taxable REIT subsidiaries, as applicable, including to accommodate (x) Ventas, Inc. or its Affiliates leasing one or more of the properties that were acquired from Sunrise Senior Living Real Estate Investment Trust to a third party lessee
(reasonably acceptable to SSLI in terms of its ability to obtain any required regulatory license) who would be the counterparty to a Management Agreement(s) and (y) Ventas, Inc. or its Affiliates subsequently unwinding such third party leases
and directly or indirectly entering into Management Agreement(s) with Manager on the same terms as the Management Agreement(s) with such third party lessee(s)/counterparty(ies). In the case of (x) above, Ventas, Inc. or an appropriate
subsidiary will also agree to replace any lessee whose conduct would permit the Manager to terminate the Management Agreement for the leased Facility or whose tenancy is otherwise terminated by lessee or Ventas, Inc. or its Affiliate so that the
Manager’s rights under the Management Agreement would be unaffected by the existence of the lease structure. Also in the case of (x) above, Ventas, Inc. or an appropriate subsidiary will guarantee the obligations of the lessee under the
Management Agreement to the maximum extent consistent with the REIT status of Ventas, Inc., in the reasonable opinion of Ventas, Inc. Furthermore, Ventas SSL agrees to make SSLI whole for (1) any third party costs incurred by SSLI or the
Facilities, and (2) any one time or recurring charges assessed against SSLI or the Facilities (e.g., real property transfer tax), in either case in connection with the implementation or unwinding of any structural changes made to accommodate
the US REIT tax concerns of Ventas, Inc. Without limiting the generality of the foregoing: 

  
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 (A) SSLI shall advise Ventas SSL and Ventas, Inc. as promptly as practicable (but in any
event prior to doing so) if SSLI enters into an agreement to acquire or be acquired or is acquired (in each case by any form of Transfer, as defined in the JV Agreements, as in effect immediately prior to the Agreement Date (and the term “JV
Agreements” shall have the same meaning in this Section 14 as it has in Paragraph 6 of the January 14, 2007 Letter Agreement, as in effect immediately prior to the Agreement Date)) by any tenant of Ventas, Inc. or its
Affiliates that is named in Exhibit E attached hereto and made a part hereof (as such Exhibit E may be supplemented by Ventas SSL or Ventas, Inc. from time to time by notice to SSLI) or by Affiliates of any such tenant;

 (B) SSLI shall reasonably cooperate and provide to Ventas, Inc. and its Affiliates such other information with regard to
properties managed by SSLI, US Manager or CAN Manager or their Affiliates that are owned in whole or in part by Ventas, Inc. or its Affiliates or related matters as Ventas SSL or Ventas, Inc. may reasonably request from time to time in connection
with the verification or protection of Ventas, Inc.’s qualification as a REIT under the Code; 
 (C) without limitation of
subsection (c) below, SSLI shall use its reasonable best efforts to qualify and maintain qualification as an “eligible independent contractor” under Section 856(d)(9) of the Code; and 

(D) if requested by Ventas SSL or Ventas, Inc., SSLI shall cooperate reasonably with Ventas, Inc. and its Affiliates and shall exercise
reasonable efforts to try to find solutions or “workarounds” to any issues that any of the foregoing matters disclosed to Ventas SSL, Ventas, Inc. and their respective Affiliates or any other matters might create in respect of the REIT
qualification of Ventas, Inc. and its Affiliates. 
 (b) Each of US Manager and CAN Manager shall be (i) either (x) an
entity that is treated as a “corporation” under Treasury Regulation Section 301.7701-2 or (y) an entity that is treated as a “disregarded entity” under Treasury Regulation Section 301.7701-3 that is wholly owned by
another entity that is treated as a “corporation” under Treasury Regulation Section 301.7701-2 (in which case references to the “Manager” or “US Manager” or “CAN Manager”, for purposes of this
Section 14, shall include the “corporation” that is considered for United States federal income tax purposes to own the assets and conduct the activities of the Manager, US Manager or CAN Manager, as applicable), and
(ii) maintained so that it will be respected as a separate operating corporation for United States federal income tax purposes. 
 (c) Each of US Manager and CAN Manager shall be maintained to qualify as an eligible independent contractor under Section 856(d)(9) of the Code, and no Manager or any Person that is a direct or
indirect and wholly or partially owned subsidiary of any Manager shall at any time: (i) lease any assets from Ventas, Inc. or any of its Affiliates, or (ii) borrow, directly or indirectly, as primary obligor,

  
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surety or otherwise, money from Ventas, Inc. or any of its Affiliates. For purposes of clarity, Ventas SSL agrees, for itself and Ventas, Inc., that, for purposes of determining whether a Manager
shall be considered for the purposes hereof to be maintained to qualify as an eligible independent contractor under Section 856(d)(9) of the Code, a Manager (x) may be a separate corporate subsidiary (as determined for U.S. federal income
tax purposes) of an entity that leases assets from or borrows money from Ventas, Inc. and (y) may have a common parent with an entity that leases assets from or borrows money from Ventas, Inc. 

(d) If there shall be an amendment or modification to Section 856(d)(9) of the Code after the Agreement Date that adversely impacts
any Manager’s qualification as an “eligible independent contractor” under such section of the Code, SSLI and its Affiliates shall cooperate reasonably with Ventas SSL, Ventas, Inc. and their respective Affiliates and shall exercise
reasonable efforts to effectuate solutions or “workarounds” to address the REIT qualification concerns under the Code of Ventas, Inc. and its Affiliates arising out of any such amendment or modification. 

(e) SSLI, US Manager and CAN Manager shall not be in breach of this Section 14 solely on account of the fact that Persons who
own, in the aggregate, more than thirty-five percent (35%) of Ventas, Inc. also own, in the aggregate, more than thirty-five percent (35%) of SSLI, each as calculated under Section 856(d)(3) of the Code, so long as such situation did
not result from any knowing actions or intentional encouragement of SSLI or its Affiliates. 
 (f) Within three (3) Business
Days of Ventas SSL’s request, SSLI shall deliver to Ventas SSL a certificate, executed by an executive officer of SSLI, addressed to Ventas, Inc. and confirming that SSLI, US Manager, CAN Manager and their respective subsidiaries and Affiliates
are, and have at all times from and after the date of the January 14, 2007 Letter Agreement been, in compliance with the terms of this Section 14 and such January 14, 2007 Letter Agreement. 

(g) The terms and provisions of this Section 14 shall supercede Paragraph 6 of the January 14, 2007 Letter Agreement as
of the Agreement Date. 
 (h) Each of SSLI, US Manager and CAN Manager agrees that Ventas SSL, Ventas, Inc. and/or their
respective Affiliates may suffer immediate and irreparable harm in the event of any breach by SSLI, US Manager, CAN Manager or any of their respective subsidiaries or Affiliates of any of their respective obligations contained in this
Section 14 and, accordingly, that Ventas SSL, Ventas, Inc. and/or their respective Affiliates shall be entitled in such an event to equitable relief, including an injunction and an order of specific performance, in addition to all other
remedies available to them. 
 (i) The parties hereto hereby acknowledge and agree that Ventas, Inc. and its Affiliates are
intended to be, and are, third party beneficiaries of all of the terms and provisions of this Section 14, and, in the event of any default by SSLI, US 

  
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Manager, CAN Manager and/or any of their respective Affiliates of their respective duties, liabilities and obligations under this Section 14, Ventas, Inc. and its Affiliates shall be
entitled to exercise any and all rights and remedies as may be available to any of them and/or Ventas SSL at law, in equity or under this Section 14 (including the rights and remedies referenced in subsection (h) above), on account
of such default. 
 (j) This Section 14 shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns, including any transferee of any interest, beneficial or otherwise, in or to a Manager or any Person that is a direct or indirect parent of a Manager, including SSLI. Nothing herein shall act as a consent to
any such transfer. 
  

	15.	Events of Default 

15.1 Events of Default. Each of the following shall constitute an “Event of Default” by SSLI, US Manager
and CAN Manager after the expiration of the applicable notice and cure periods, if any, that are expressly provided below, and with no additional notice or cure rights (it being expressly understood that, in the event no notice and/or cure periods
are expressly provided below, it shall be an automatic Event of Default if SSLI, US Manager and/or CAN Manager does not strictly comply with and perform the applicable obligation(s) in accordance with the terms and conditions set forth for the
performance of such obligation(s) in this Agreement): 
 (a) The failure of SSLI, US Manager and/or CAN Manager to make any
payment required by the terms of this Agreement, or to make any Shared Expenses credit-back required by the terms of Section 4 hereof (any such payment or Shared Expenses credit-back is herein referred to as a
“Payment/Credit-Back”), in either case by its due date as provided in this Agreement, and, within thirty (30) days following notice from Ventas SSL of such failure (herein, a “Monetary Failure Notice”), such
failure has not been cured, provided, however, that, if, within the aforesaid thirty (30) day period following such Monetary Failure Notice, SSLI, US Manager and CAN Manager (i) notify Ventas SSL that SSLI, US Manager and CAN
Manager dispute in good faith all or a portion of the amount of the Payment/Credit-Back that Ventas SSL’s Monetary Failure Notice states is past due and that such disputed amount is less than One Million Two Hundred Fifty Thousand US Dollars
($1,250,000.00) (for all purposes of this subsection (a), the amount of any Payment/Credit-Back (or disputed or undisputed portion thereof) that is expressed in Canadian Dollars shall be translated into US Dollars using the Applicable Translation
Rate as of the date of Ventas SSL’s Monetary Failure Notice) and (ii) pay to Ventas SSL the amount of such Payment/Credit-Back that is not so disputed in good faith, then, (x) the failure of SSLI, US Manager and/or CAN Manager to pay
such disputed amount of the Payment/Credit-Back shall, without limiting Ventas SSL’s other rights and remedies on account of an Event of Default, not give rise to a right to terminate any Management Agreement, except as provided below in this
subsection (a) (and provided, however, that, if and for so long as Ventas SSL’s aforesaid right to terminate is suspended as provided in this subsection (a), Ventas SSL agrees that

  
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the existence of the Event of Default on account of which Ventas SSL’s right to terminate is suspended (and any Cross Default (as defined in the Management Agreements) arising solely due to
the existence of such Event of Default) shall not (X) by itself, preclude SSLI, US Manager or CAN Manager from exercising any cure right to which it is entitled under Section 3 hereof and which is conditional upon no Event of
Default being in existence under this Agreement and no Manager Event of Default being in existence under a specific Management Agreement or any of the Management Agreements, as applicable, and (Y) be counted as a Manager Event of Default for
purposes of Section 3.5(b) hereof), and (y) upon the written request of Ventas SSL, such dispute (an “Arbitrable Dispute”) shall be resolved through arbitration as provided in this subsection (a). Ventas SSL may
initiate arbitration, with respect to an Arbitrable Dispute and as provided in subsection (y) above, by delivering written notice (an “Arbitration Notice”) to SSLI, US Manager and CAN Manager (each of SSLI, US Manager and CAN
Manager together or Ventas SSL alone is sometimes referred to in this subsection (a) as a “party” or collectively as the “parties”), and filing at the Chicago, Illinois regional office of the American Arbitration Association
(the “AAA”) three copies of such Arbitration Notice and three copies of this subsection (a), together with the appropriate filing fee as provided in the AAA’s then current schedule of fees. Such Arbitration Notice shall include
a copy of Ventas SSL’s Monetary Failure Notice and of the notice from SSLI, US Manager and CAN Manager pursuant to subsection (i) above. In the event that Ventas SSL invokes arbitration as provided above, Ventas SSL may not revoke its
election to arbitrate, and shall be bound to proceed with arbitration of, the subject Arbitrable Dispute, and the subject Arbitrable Dispute shall be settled by binding arbitration in Chicago, Illinois administered by the AAA pursuant to the
Expedited Procedures under its Commercial Arbitration Rules (but not including or allowing application of any of the Procedures for Large, Complex Commercial Disputes included in such Commercial Arbitration Rules and further not including or
allowing application of Rule E-2 thereof, or any other provision of such Commercial Arbitration Rules, that would cause the arbitration to be administered under the regular procedures of such Commercial Arbitration Rules instead of the
Expedited Procedures and as otherwise modified by this subsection (a)), and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Anything in the applicable rules of the AAA to the contrary
notwithstanding, (1) the determination of the Arbitrable Dispute by the arbitrator shall be conclusive upon the parties and a final, unappealable judgment rendered by such arbitrator relative to the Arbitrable Dispute may be entered in any
court having appropriate jurisdiction, (2) the arbitrator shall furnish to each party a signed copy of his/her determination of the Arbitrable Dispute, (3) subject to subsection (5) below, each party shall pay its own attorneys’
fees and the witness fees and similar expenses of preparing for its presentation of evidence and arguments at the arbitration hearing(s) and of making such presentation, (4) subject to subsection (5) below, each party shall share equally
any fees payable to the arbitrator, (5) notwithstanding subsections (3) and (4) above, the arbitrator shall have the authority to require that the non-prevailing party in the arbitration pay to or reimburse the prevailing party for
the costs and expenses of the nature 

  
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described in subsections (3) and (4) above for which the prevailing party would otherwise have been responsible or for such portion of such costs and expenses as the arbitrator so
requires that the non-prevailing party pay or reimburse, and (6) in the event the arbitrator determines that any amount is owed by SSLI, US Manager and/or CAN Manager to Ventas SSL (A) as a result of his/her determination of the Arbitrable
Dispute and/or (B) pursuant to subsection (5) hereof, such amount shall bear interest at the rate of ten percent (10%) per annum from the date of Ventas SSL’s aforesaid Monetary Failure Notice (in the case of amounts owed under
subsection (6)(A) above) or from the fifth (5th) Business Day after the arbitrator’s delivery of his/her determination as provided in subsection (2) above (in the case of amounts owed under subsection (6)(B) above), and, in
the event such amount, with the applicable interest, is not paid by SSLI, US Manager and CAN Manager within five (5 Business Days after written demand therefor by Ventas SSL, Ventas SSL shall have the right to terminate any or all of the Management
Agreements as provided in Section 15.2 below, in addition to all other rights and remedies on account of an Event of Default hereunder. In the event SSLI, US Manager and CAN Manager comply with subsections (i) and (ii) above,
but, in lieu of proceeding to arbitrate the Arbitrable Dispute as described above, (I) Ventas SSL sues SSLI, US Manager and/or CAN Manager in a court of competent jurisdiction for all or any part of the amount claimed in the applicable Monetary
Failure Notice (net of any payment to Ventas SSL on account of such amount pursuant to subsection (ii) above) and any interest thereon to which Ventas SSL is entitled pursuant to Section 15.4 hereof, (II) Ventas SSL obtains a final,
unappealable judgment in such suit against SSLI, US Manager and/or CAN Manager and (III) such judgment is not paid and discharged in full within five (5) Business Days after the entry of such final, unappealable judgment, Ventas SSL shall have
the right to terminate any or all of the Management Agreements as provided in Section 15.2 below, in addition to all other rights and remedies on account of an Event of Default hereunder; or 

(b) The failure of SSLI, US Manager and/or CAN Manager to comply with any of their respective duties, liabilities and obligations under
Section 2.3, Section 2.5 or Section 14 of this Agreement (provided, however, that, in the case of a failure of SSLI, US Manager and/or CAN Manager to comply with Section 14 of this Agreement, in
the event (i) such failure does not, in the sole, but good faith, opinion of Ventas SSL, jeopardize or threaten the qualification or status or legal compliance with any Legal Requirement relating to operating or qualifying as a real estate
investment trust for United States federal tax purposes, of any Ventas SSL Party and (ii) Ventas SSL has actual knowledge of such failure, then such failure shall not constitute an Event of Default if SSLI, US Manager or CAN Manager cures such
failure prior to the first to occur of (1) the date that is five (5) Business Days after Ventas SSL notifies SSLI, US Manager and CAN Manager of such failure and (2) the date upon which such failure jeopardizes or threatens the
qualification or status or legal compliance with Legal Requirements relating to operating or qualifying as a real estate investment trust for United States federal tax purposes of any Ventas SSL Party, as determined by Ventas SSL, in Ventas
SSL’s sole, but good faith, opinion (for purposes of this 

  
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Section 15.1(b), Ventas SSL shall be deemed to have “actual knowledge” of an applicable failure when any of Debra A. Cafaro, T. Richard Riney or Brian K. Wood (or their
successors as, respectively, the Chief Executive Officer, General Counsel or Senior Vice President of Tax of Ventas, Inc.) has Actual Knowledge of such failure)); or 
 (c) Unless specifically addressed in subsection (a) or (b) above (in which event the specific default provisions, including the applicable notice and cure periods, if any, set forth above, shall
control), the occurrence of any material, non-monetary default by SSLI, US Manager and/or CAN Manager of its or their duties, liabilities and obligations under this Agreement for a period of thirty (30) days after SSLI, US Manager and CAN
Manager receives notice thereof from Ventas SSL; provided, however, that, if any such default referenced in this subsection (c) cannot be cured within such thirty (30) day period, then SSLI, US Manager and CAN Manager shall be
entitled to such additional time as shall be reasonable under the circumstances, provided SSLI, US Manager and CAN Manager are capable of curing same, have proceeded to commence cure of such default within said period, and thereafter diligently
prosecute the cure to completion. 
 15.2 Remedies of Ventas SSL. Upon the occurrence of any Event of Default but
subject to the limitation upon certain termination rights set forth in Section 15.1(a) above, Ventas SSL shall be entitled to exercise any and all rights and remedies as may be available to it at law, in equity or under this Agreement,
and, without limitation of the foregoing, upon the occurrence of any Event of Default but subject to the limitation upon certain termination rights set forth in Section 15.1(a) above, Ventas SSL may, in its sole discretion and at its
option at any time thereafter, elect to terminate any one (1) or more, or all, of the Management Agreements by notice to SSLI, US Manager and CAN Manager. 
 15.3 No Waiver of Default. The failure of Ventas SSL to seek a remedy for any violation of, or to insist upon the strict performance of, any term or condition of this Agreement shall not
prevent a subsequent act by SSLI, US Manager and/or CAN Manager that would have originally constituted a violation of this Agreement by SSLI, US Manager and/or CAN Manager from having all the force and effect of an original violation. Ventas SSL may
waive any breach or threatened breach by SSLI, US Manager and/or CAN Manager of any term or condition herein contained. The failure by Ventas SSL to insist upon the strict performance of any one of the terms or conditions of this Agreement or to
exercise any right, remedy or election herein contained or permitted by law shall not constitute or be construed as a waiver or relinquishment for the future of such term, condition, right, remedy or election, but the same shall continue and remain
in full force and effect. All rights and remedies that Ventas SSL may have at law, in equity or otherwise for any breach of any term or condition of this Agreement shall be distinct, separate and cumulative rights and remedies and no one of them,
whether or not exercised by Ventas SSL, shall be deemed to be in exclusion of any other right or remedy of Ventas SSL. 

15.4 Interest. Upon the failure of any party to make any payment required to be made in accordance with the terms of this
Agreement as of the due date that is specified in this Agreement, and the continuance of such failure for five (5) Business Days after notice thereof, the amount owed to the non-defaulting party shall accrue interest at the rate of 10% per
annum, 

  
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from and after the date on which such payment was originally due to the non-defaulting party until such payment is made. 

 

	16.	SSLI Guarantee and Indemnity 

 16.1 Guarantee. SSLI hereby unconditionally and irrevocably guarantees the performance to each Ventas SSL Party (the “Beneficiaries”) of all Obligations if any Manager fails
to do so. 
 16.2 Indemnity. If any or all of the Obligations are not duly performed and are not recoverable under
Section 16.1 for any reason whatsoever, SSLI will, as a separate and distinct obligation, indemnify and save harmless the Beneficiaries from and against all losses resulting from the failure to perform such Obligations. 

16.3 Primary Obligation. If any or all of the Obligations are not duly performed and are not recoverable under
Section 16.1 or each of the Beneficiaries is not indemnified under Section 16.2, in each case for any reason whatsoever, such Obligations will, as a separate and distinct obligation, be recoverable from SSLI as primary
obligor. 
 16.4 Obligations Absolute. The liability of SSLI hereunder will be absolute and unconditional and will
not be affected by: 
 (a) any lack of validity or enforceability of any agreement between SSLI and any Affiliate thereof and/or
any Beneficiary or any Affiliate thereof; 
 (b) any impossibility, impracticability, frustration of purpose, illegality, force
majeure or act of government; 
 (c) the bankruptcy, winding-up, liquidation, dissolution or insolvency of any Manager and/or any
other Person or the amalgamation of or any change in the status, function, control or ownership of any Beneficiary and/or any other Person; 
 (d) any lack or limitation of power, incapacity or disability on the part of any Manager or any other Person or of the directors, officers, employees or agents thereof or any other irregularity or defect
on the part of such Person in its obligations to any Beneficiary; 
 (e) any other law, regulation or other circumstance that
might otherwise constitute a defense available to, or a discharge of, any Manager or any Affiliate thereof in respect of any or all of the Obligations; 
 (f) the enforcement by any Beneficiary of its respective rights under a Management Agreement; or 
 (g) any payment or failure to pay by any Manager hereunder or under any Management Agreement. 
 16.5 No Release. The liability of SSLI hereunder will not be released, discharged, limited or in any way affected by anything done, suffered or permitted by any Beneficiary in

  
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connection with any duties or liabilities of any Manager to any Beneficiary or any security therefor, including any loss of or in respect of any security received by any Beneficiary. Without
limiting the generality of the foregoing and without releasing, discharging, limiting or otherwise affecting in whole or in part SSLI’s liability hereunder, and without obtaining the consent of or giving notice to SSLI, any Beneficiary may:

 (a) make any change in the time, manner or place of performance under, or in any other term of, any agreement between any
Manager and any Beneficiary or waive the failure on the part of any Manager and/or any other Person to carry out any of its obligations under any such agreement; 
 (b) grant time, renewals, extensions, indulgences, releases and discharges to any Manager and/or any other Person; 
 (c) accept compromises from any Manager and/or any other Person; and 
 (d)
otherwise deal with any Manager and/or any other Persons as any Beneficiary may see fit. 
 16.6 No Exhaustion of
Remedies. No Beneficiary will be bound or obligated to exhaust its recourse against any Manager or any other Person or collateral it may hold or take any other action before being entitled to demand performance or payment from SSLI
hereunder. 
 16.7 No Set-off. In any claim by any Beneficiary against SSLI, SSLI may not assert any set-off or
counterclaim that SSLI and/or any Manager and/or any other Person may have against any Beneficiary. 
 16.8 Continuing
Guarantee. The obligations of SSLI hereunder will constitute and be continuing obligations and will apply to and secure performance due to any Beneficiary and will not be considered as wholly or partially satisfied by the payment or
liquidation at any time of any sum of money for the time being due or remaining unpaid to any Beneficiary. The guarantee herein will continue to be effective even if at any time performance of any of the Obligations is rendered unenforceable or is
rescinded upon the occurrence of any action or event including the insolvency, bankruptcy or reorganization of any Beneficiary or otherwise. 
  

	17.	Benefits and Obligations 

 Each of the parties hereto (other than Manager and SSLI) shall hold the benefits of this Agreement in trust for each Owner that is not a party hereto. Each of the parties hereto covenants and agrees with
the other to cause the Owners that such party controls to comply with such Owners’ obligations hereunder. 
  

	18.	Effect of Amendment and Restatement; Release; Certain Waivers; Certain Agreements Not to Terminate 

18.1 Relation to Existing Master Agreement. Subject to Section 18.2 and Section 18.5 below,
(a) this Agreement shall govern and control with respect to all events, acts, omissions, liabilities, and obligations first occurring, arising, or accruing from and after the 

  
 70 

 
Agreement Date (except that the provisions of Sections 5 and 6 of this Agreement shall so govern and control from and after January 1, 2010) and (b) subject to
Section 18.3, Section 18.4 and Section 18.5 below, the Existing Master Agreement shall govern and control with respect to all events, acts, omissions, liabilities, and obligations first occurring, arising, or
accruing prior to the above referenced applicable governance and control dates; provided, however, that, subject to Section 18.3, Section 18.4 and Section 18.5 below, if any breach or default of the
Existing Master Agreement has occurred and not been cured as of the Agreement Date, then the terms of this Agreement shall govern and control with respect to cure periods and remedies. 

18.2 Relation to Certain Other Documents. Notwithstanding anything to the contrary contained in this Agreement,
(a) this Agreement is supplemented by the January 14, 2007 Letter Agreement, the 2008 Letter Agreement and the 2009 Letter Agreement, and by the provisions of the Strategic Alliance Agreement that continue to have force and effect pursuant
to the terms of the January 14, 2007 Letter Agreement, (b) each of such letters, and such provisions of the Strategic Alliance Agreement, remain in full force and effect, notwithstanding this Agreement, except as follows:
(i) Section 5 of the 2008 Letter Agreement shall not apply insofar as it conflicts or is inconsistent with this Agreement, (ii) Paragraph 7 of the January 14, 2007 Letter Agreement shall not apply insofar as it conflicts or
is inconsistent with Section 2.3 of this Agreement, and (iii) Paragraphs 6 and 10 of the January 14, 2007 Letter Agreement, and Sections 6, 7 and 9 of the 2008 Letter Agreement, are superseded by this Agreement as of the
Agreement Date, and (c) except as specifically modified by this Agreement and the Restated Management Agreements and subject to the terms of subsections (a) and (b) above and Section 18.1, Section 18.3,
Section 18.4 and Section 18.5 of this Agreement, any agreements between SSLI and/or its Affiliates, on the one hand, and Ventas SSL, Ventas, Inc. and/or their respective Affiliates, on the other hand, that were in existence
immediately prior to the Agreement Date (the “Existing Ventas/Sunrise Agreements”), remain in full force and effect in accordance with their respective terms. 
 18.3 Release of Ventas SSL and Certain Other Persons. Each of SSLI, CAN Manager and US Manager, for itself and for its predecessors, successors, assigns, shareholders, officers,
directors and Affiliates, hereby releases Ventas SSL, Ventas, Inc. and the Existing Owners, their respective predecessors, shareholders, officers, directors and Affiliates, from any and all claims, demands, controversies, actions, causes of action,
obligations, liabilities, costs, expenses, attorneys’ fees and damages of any character, nature or kind, past or present, known or unknown, suspected or unsuspected, fixed or contingent, liquidated or unliquidated, and whether arising in or by
tort, contract, statute or equity, arising on or prior to the PSA Date (collectively, the “Released Matters”), including any and all Released Matters caused by, or arising from, any act, omission to act, breach or default by Ventas
SSL, Ventas, Inc., any of the Existing Owners or any of their respective Affiliates (as applicable) that occurred on or prior to the PSA Date and under any of the Existing Master Agreement, the January 14, 2007 Letter Agreement, the 2008 Letter
Agreement, the 2009 Letter Agreement, the Existing Management Agreements and the Existing Agreements (as such term is defined in the January 14, 2007 Letter Agreement), as applicable. Notwithstanding anything contained herein to the contrary,
however, in no event shall the release effected under this Section 18.3 relate, extend or otherwise apply to any indemnities in favor of a Sunrise Party, solely on account of its former ownership of a Seller Interest and in its capacity
as such a former owner, pursuant to the terms of the Joint Venture Agreement governing such Seller Interest or to any fees or reimbursements for expenses (a)

  
 71 

 
payable to SSLI, CAN Manager or US Manager (as applicable) under the Existing Master Agreement or any of the Existing Management Agreements, and (b) which had accrued but were not yet due
and payable as of the PSA Date (the fees and/or reimbursements for expenses described in clauses (a) and (b) are collectively referred to herein as “Accrued But Not Yet Due Fees and Expenses Reimbursements”). Each of SSLI,
CAN Manager and US Manager hereby represents and warrants to Ventas SSL that, to the Actual Knowledge of its Management Group (as hereinafter defined), as of the PSA Date, there are no Accrued But Not Yet Due Fees and Expenses Reimbursements, except
for those listed on Exhibit G attached hereto. As used in this Section 18.3, the term “Management Group” shall mean, in the case of each of SSLI, CAN Manager and/or US Manager, Greg Neeb, David Haddock, Ann
Lacey and Philip Kroskin. 
 18.4 Certain Waivers. Ventas SSL hereby waives, for itself, the Existing Owners and
its and their respective Affiliates (including any Ventas SSL Party), the following: 
 (a) Insofar as it existed as of the PSA
Date, any Related Agreement SSLI Event of Default/Termination Right (as defined below) of which, as of the PSA Date, Ventas SSL’s Management Group (as defined below) had Actual Knowledge; 

(b) Any termination rights under the terms of Section 3 or Section 4 of the Existing Master Agreement; 

(c) Any default by US Manager and/or CAN Manager of the last sentence of Section 7.01 of any Existing Management Agreement as a
result of US Manager or CAN Manager, as applicable, having incurred an expenditure in excess of any line item (not a summary line item) in an approved budget for a Facility of $10,000.00 or more and for an aggregate excess of $50,000.00 or more in
any fiscal year; 
 (d) Subject to Section 18.5(d) and Section 18.5(e) hereof, insofar as it existed as
of the PSA Date, any right (of which Ventas SSL’s Management Group had Actual Knowledge as of the PSA Date) of Ventas SSL or any Existing Owner or any of its or their Affiliates (including any Ventas SSL Party), acting unilaterally and without
being required to do so by any of the Applicable Lenders (as defined below) pursuant to the terms of any Existing Loan Document (as defined below), to terminate any of the Existing Management Agreements pursuant to the terms of any of the Existing
Loan Documents; and 
 (e) Subject to Section 18.5(d) and Section 18.5(e) hereof, any right of
termination that Ventas SSL or any Existing Owner or any of its or their Affiliates (including any Ventas SSL Party) may have under the terms of this Agreement, the Existing Master Agreement, any Management Agreement, any Existing Management
Agreement or any Existing Ventas/Sunrise Agreement, on account of any Existing Immediate or Unmatured Default (as defined in Section 18.5(a) below) of which, as of the PSA Date, Ventas SSL’s Management Group had Actual Knowledge.

 As used in this Section 18.4: 
 (1) The term “Ventas SSL’s Management Group” shall mean T. Richard Riney, Joseph D. Lambert, Timothy A. Doman and Chris Cummings; 

  
 72 

 (2) The term “Related Agreement SSLI Event of Default/Termination Right”
shall mean the following that existed as of the PSA Date: (x) an Event of Default or “Event of Default by a Manager” under any of the Existing Management Agreements; (y) an “Event of Default” or other substantively
comparable term under any of the other Related Agreements (as hereinafter defined) that describes an event or circumstance existing as of the PSA Date in which SSLI, CAN Manager or US Manager (as applicable) was in breach or default of any of its
obligations under such other Related Agreement and such situation had matured, whether through the giving of notice or the passage of time or both, into an “event of default” or “default” in response to which Ventas SSL, an
Existing Owner or any of their respective Affiliates (as applicable) was entitled, without any further obligation to give the defaulting party notice or an opportunity to cure, to exercise its rights and remedies under the applicable other Related
Agreement on account of such “event of default” or “default”, or, if no such substantively comparable term exists, then the existence of any such event or circumstance, entitling exercise of rights and remedies as aforesaid,
described in this clause (y); or (z) any right, other than on account of any of the matters described in clauses (x) and (y) above, to terminate the Existing Master Agreement or any of the Existing Management Agreements pursuant to
the terms of any of the Related Agreements; 
 (3) The term “Related Agreements” shall collectively mean the
Existing Master Agreement, the January 14, 2007 Letter Agreement, the 2008 Letter Agreement, the 2009 Letter Agreement and the Existing Management Agreements; 
 (4) The term “Existing Loan Document” shall mean any “Loan Document”, as defined in Section 10.3(e) of the Management Agreements, in existence as of the PSA Date; and

 (5) The term “Applicable Lenders” shall collectively mean any owners or holders of any of the Existing Loan
Documents and/or any loan servicer acting on behalf of any such owner or holder. 
 Notwithstanding anything contained herein to the contrary,
however, in no event shall the waivers made in this Section 18.4 relate or apply to any Related Agreement SSLI Event of Default/Termination Right that involves or otherwise arises from any accrued fees or payments which are listed on
Exhibit H attached hereto and, as of the PSA Date, were due to Ventas SSL or any of the Existing Owners or any of their respective Affiliates (as applicable) under a Related Agreement. 

18.5 Certain Agreements Not to Terminate. Notwithstanding any other provision of this Agreement, the Management Agreements,
the Existing Master Agreement or the Existing Management Agreements to the contrary, and in addition to the waivers set forth in Section 18.4 of this Agreement, Ventas SSL agrees that: 

(a) Subject to subsection (d) below, it will not, and it will cause each of the Owners, and its and their Affiliates not to, exercise
any right of termination that it may have under 

  
 73 

 
the terms of this Agreement, the Existing Master Agreement, any Management Agreement or any Existing Management Agreement and on account of any specific event or circumstance or combination of
specific events and circumstances (i) that occurred prior to the PSA Date and (ii) that, (x) immediately and without notice or (y) solely with notice or the passage of time or both (i.e., without any further event or circumstance
(failure by SSLI, US Manager or CAN Manager, as applicable, to complete any permitted cure shall not, by itself, be deemed a further event or circumstance), whether or not similar to the specific event or circumstance or combination of specific
events and circumstances in question), gave rise, or would give rise, to a right to terminate this Agreement, the Existing Master Agreement, any Management Agreement or any Existing Management Agreement (an “Existing Immediate or Unmatured
Default”), for so long as the occurrence or existence of any such Existing Immediate or Unmatured Default has not caused, and would reasonably be expected not to cause, significant actual prejudice or damage to any Facility or Facilities,
to any Owner or Owners or to Ventas SSL or any of its Affiliates (“Significant Actual Prejudice”); 
 (b)
Subject to subsection (d) below, it will not, and it will cause each of the Owners, and its and their Affiliates not to, exercise any right of termination that it may have under the terms of any Management Agreement and on account of any
Manager Event of Default under Section 14.1(a)(x), (xi) or (xii) of any Management Agreement (in the case of such Section 14.1(a)(xii), other than with respect to the obligations under Section 10.3(e) of any Management
Agreement, which is provided for in Section 18.5(c) below, and further other than with respect to the obligations under Sections 10.3(c) and 10.3(d) of any Management Agreement, as to which Sections 10.3(c) and (d), and as to
any Manager Event of Default under such Section 14.1(a)(xii) resulting from non-compliance with such Sections 10.3(c) and 10.3(d), this subsection (b) shall not apply), for so long as the occurrence or existence of any such Manager
Event of Default has not caused, and would reasonably be expected not to cause, Significant Actual Prejudice. Each of SSLI, US Manager and CAN Manager acknowledges and agrees that, by way of example and not in limitation, any Manager Event of
Default under Section 14.1(a)(x), (xi) or (xii), as applicable, of any Management Agreement that results in any of the following shall, for purposes of this subsection (b), be deemed to cause Significant Actual Prejudice: 

(i) the expiration, termination or breach of any applicable “Authorization” (as defined in the Management Agreements) that is
material to any Facility; 
 (ii) any Ventas SSL Party being (x) unable to provide notice to its insurer of any insurance
claim that is material to any Facility in a manner that such insurer accepts as a timely notice of such claim, or (y) otherwise significantly prejudiced in making or prosecuting any insurance claim that is material to any Facility; or

 (iii) with regard to matters of which any Manager is required to give any Owner written notice as provided in
Section 15.1(b) of any Management Agreement, any Ventas SSL Party being unable, or having insufficient time, to prepare and file, or to make, a Proper Response (as described below) (x) in any new “Litigation Matter” (as defined
in the Management Agreements) that is material to any Facility, or (y) to any material filing or occurrence with respect to any active Litigation Matter that is material to any Facility. As used herein, a

  
 74 

 
“Proper Response” required of any Ventas SSL Party shall refer to an initial response (e.g., an appearance and answer to a complaint) (in the case of subsection (x) above)
or a response (in the case of subsection (y) above) that is both a proper response and accepted (without objection by, or over the objection of, any adverse party) by the court, regulatory body, arbitrator(s) or other applicable tribunal;

 (c) Subject to subsection (d) below, it will not, and it will cause the Owners and Ventas SSL’s and such
Owners’ Affiliates not to, exercise any right of termination that it may have under the terms of any Management Agreement on account of any non-compliance with Section 10.3(e) of any Management Agreement, unless and until such
non-compliance materially and adversely affects any Ventas SSL Party or any Facility that is being managed by any Manager under a Management Agreement. Each of SSLI, US Manager and CAN Manager acknowledges and agrees that any non-compliance with
such Section 10.3(e) of any Management Agreement (i) as to which any Ventas SSL Party that is a public company is required, by applicable Legal Requirements, to disclose in a public filing with the Securities and Exchange Commission (such
commission or any successor thereto, the “SEC”) or any other regulatory agency or authority having jurisdiction over such public company or (ii) on account of which the owner or holder of any Facility Mortgage (other than
Ventas SSL, or any Owner, or any of their respective Affiliates) or any loan servicer acting on behalf of any such owner or holder, on account of such non-compliance, takes any action to enforce its rights under its Facility Mortgage or other Loan
Documents (it being agreed, however, that any notification or statement that is sent by any such owner, holder or loan servicer to the applicable Owner and/or borrowing entity, SSLI, US Manager or CAN Manager, and that notifies the recipient(s)
thereof (x) that an obligation has not been met by such applicable Owner, other borrowing entity, SSLI, US Manager or CAN Manager, or a default by such applicable Owner, other borrowing entity, SSLI, US Manager or CAN Manager has occurred
and/or (y) describes, but does not exercise or implement any of, such owner’s, holder’s or loan servicer’s rights resulting therefrom shall not, by itself, constitute an action to enforce the aforesaid right(s) under such
Facility Mortgage or such other Loan Documents) or (iii) on account of which (x) a breach or default exists under any indebtedness that is material to Ventas, Inc. and/or Ventas Realty, Limited Partnership (and, for purposes of this
subsection (iii) and without limitation of the foregoing, SSLI, US Manager and CAN Manager acknowledge and agree that (1) Ventas, Inc. and/or Ventas Realty, Limited Partnership need not be obligated for the payment of a particular
indebtedness in order for that indebtedness to be material to it or them (provided that an Affiliate of Ventas, Inc. and Ventas Realty, Limited Partnership that is, directly or indirectly, majority-owned by Ventas, Inc. and Ventas Realty, Limited
Partnership or is consolidated for financial reporting purposes on the financial statements of Ventas, Inc. or Ventas Realty, Limited Partnership is an obligor relative to such indebtedness) and (2) any credit facility (revolving or term) of
Ventas, Inc. or Ventas Realty, Limited Partnership, or debt securities issued by Ventas, Inc., Ventas Realty, Limited Partnership or any of their respective wholly owned subsidiaries, shall be treated and recognized as an indebtedness that is
material to Ventas, Inc. and/or Ventas Realty, Limited Partnership if the principal agreement related to such credit facility or debt securities is publicly filed with the SEC; provided, however, that, notwithstanding the foregoing, any loan,
the principal collateral 

  
 75 

 
for which is a Facility Mortgage or Facility Mortgages, shall not be considered to be a credit facility or debt security under this subsection (2)) and (y) such situation has matured
into an “event of default” or “default” in response to which the holder, or the agent, trustee or similar representative of the beneficial owners, of such indebtedness is entitled, without further obligation to give the
defaulting party notice or an opportunity to cure, to exercise its rights and remedies under the applicable indebtedness documents (whether or not such holder, or such agent, trustee or similar representative, of such indebtedness has taken any
action to enforce its rights under the applicable indebtedness documents), shall, for purposes of this subsection (c), be deemed to have such material and adverse effect; 
 (d) The provisions of subsections (a), (b) and (c) above, and Section 18.4(d) and Section 18.4(e) above, shall not apply to restrict (i) the owner or holder of any
Facility Mortgage (other than Ventas SSL, or any Owner, or any of their respective Affiliates) and/or any loan servicer acting on behalf of any such owner or holder from exercising any rights it may have with respect to this Agreement, the
Management Agreements, the Existing Management Agreements or the Existing Master Agreement pursuant to the terms its Facility Mortgage or any other Loan Documents or (ii) Ventas SSL or any of its Affiliates from exercising any right of
termination that is referenced in subsection (a), (b) or (c) above, or Section 18.4(d) or Section 18.4(e) above, if required to do so by any such owner or holder or any loan servicer acting on behalf of any such
owner or holder of any Facility Mortgage pursuant to the terms of any Facility Mortgage or other Loan Documents; and 
 (e)
Except with respect to the restrictions on termination rights expressly set forth in subsections (a), (b) and (c) above or the waivers of termination rights expressly set forth in Section 18.4(d) and Section 18.4(e)
above (all subject to subsection (d) above), the provisions of subsections (a), (b) and (c) above, and Section 18.4(d) and Section 18.4(e) above, shall not apply to restrict Ventas SSL or any Affiliate of
Ventas SSL from exercising any rights and remedies that it may have at law, in equity, or under this Agreement, the Existing Master Agreement, any Management Agreement and/or any Existing Management Agreement on account of any matter referenced in
subsection (a), (b) or (c) above or Section 18.4(d) or Section 18.4(e) above, all of which rights and remedies (other than the aforesaid restricted or waived (as applicable) rights to terminate) are unaffected by
this Section 18.5 or by Section 18.4(d) or Section 18.4(e) above; provided, however, that, subject to and without limitation of subsection (d) above, Ventas SSL agrees that the existence of an Event of
Default, or a Manager Event of Default under a Management Agreement, on account of which Ventas SSL has suspended or waived its right to terminate under any of subsections (a), (b) and (c) above or Section 18.4(d) or
Section 18.4(e) above (including any Cross Default (as defined in the Management Agreements) arising solely due to the existence of any such Event of Default under this Agreement), for so long as such suspension or waiver is effective,
shall not (A) by itself, preclude SSLI, US Manager or CAN Manager from exercising any cure right to which it is entitled under Section 3 hereof and which is conditional upon no Event of Default being in existence under this
Agreement and no Manager Event of Default being in existence under a specific Management Agreement or any of the 

  
 76 

 
Management Agreements, as applicable, and (B) be counted as a Manager Event of Default for purposes of Section 3.5(b) hereof. 

EXECUTED as of the date first above written. 
 [SIGNATURE PAGES TO FOLLOW] 

  
 77 

 
			
	SSLI:
	
	SUNRISE SENIOR LIVING, INC.,
a Delaware corporation
		
	By:	 	/s/ Julie A. Pangelinan
	Name:	 	Julie A. Pangelinan
	Title:	 	Chief Financial Officer
	
	US MANAGER:
	
	SUNRISE SENIOR LIVING MANAGEMENT, INC., a Virginia corporation
		
	By:	 	/s/ Julie A. Pangelinan
	Name:	 	Julie A. Pangelinan
	Title:	 	Vice President and Treasurer
	
	CAN MANAGER:
	
	SUNRISE NORTH SENIOR LIVING LTD., a New Brunswick corporation
		
	By:	 	/s/ Julie A. Pangelinan
	Name:	 	Julie A. Pangelinan
	Title:	 	Vice President and Treasurer
	
	VENTAS SSL, INC.:
	
	VENTAS SSL, INC., a Delaware corporation
		
	By:	 	/s/ T. Richard Riney
	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President and Associate Secretary

 EXHIBITS 

 

			
	 Exhibit
	  	 Description

		
	A	  	List of Owners of Stabilized Facilities and Names and Addresses of Stabilized Facilities
		
	B	  	List of Owners of Pre-Stabilized Facilities and Names and Addresses of Pre-Stabilized Facilities
		
	C	  	Expected ANOIs, BMFEANOI Amounts and Incentive Fee Targets
		
	D	  	Arm’s Length
		
	E	  	Ventas Tenants
		
	F	  	Applicable Facility Translation Rates
		
	G	  	Certain Accrued But Not Yet Due Fees and Expenses Reimbursements
		
	H	  	Certain Accrued Fees or Payments
		
	I	  	Base Management Fees – January 1, 2010 through March 31, 2010

 EXHIBIT A 

LIST OF STABILIZED FACILITIES 
  

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	4000	  	Sunrise of Springfield	  	6541 Franconia Road	  	Springfield	  	VA	  	22150	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Springfield

Assisted Living, L.L.C.

								
	4001	  	Sunrise of Morris Plains	  	209 Littleton Road	  	Morris Plains	  	NJ	  	7950	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Morris Plains
 Assisted Living, L.L.C.

								
	4002	  	Sunrise of Old Tappan	  	195 Old Tappan Road	  	Old Tappan	  	NJ	  	7675	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Old Tappan

Assisted Living, L.L.C.

								
	4003	  	Sunrise of Granite Run	  	247 North Middletown Road	  	Media	  	PA	  	19063	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Granite Run

Assisted Living, L.L.C.

								
	4004	  	Sunrise of Abington	  	1801 Susquehanna Road	  	Abington	  	PA	  	19001	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Abington

Assisted Living, L.L.C.

								
	4005	  	Sunrise of Wayne	  	184 Berdan Avenue	  	Wayne	  	NJ	  	7470	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Wayne

Assisted Living, L.L.C.

								
	4006	  	Sunrise of Westfield	  	240 Springfield Avenue	  	Westfield	  	NJ	  	7090	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Westfield

Assisted Living, L.L.C.

								
	4007	  	Sunrise of Haverford	  	217 West Montgomery Avenue	  	Haverford	  	PA	  	19041	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Haverford

Assisted Living, L.L.C.

								
	4008	  	Sunrise of Ann Arbor	  	1901 Plymouth Road	  	Ann Arbor	  	MI	  	48105	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise North Ann

Arbor Senior Living,

LLC

								
	4009	  	Sunrise of Cherry Creek	  	251 South Colorado Boulevard	  	Denver	  	CO	  	80246	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Cherry Creek
 Senior Living, LLC

								
	4010	  	Sunrise of Cuyahoga Falls	  	1500 State Road	  	Cuyahoga Falls	  	OH	  	44223	  	 Sunrise Senior

Living Management,
 Inc.
	  	 Sunrise Cuyahoga
 Falls Senior
Living,
 LLC

  
 A-1

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	 4011
	  	Sunrise of New City	  	233 North Main Street	  	New City	  	NY	  	10956	  	 Sunrise Senior

Living Management, Inc.
	  	 Sunrise New City
 Senior
Living, LLC

								
	 4012
	  	Sunrise of Sunnyvale	  	633 South Knickerbocker Drive	  	Sunnyvale	  	CA	  	94087	  	 Sunrise Senior

Living Management, Inc.
	  	 AL III Investments,

L.L.C.

								
	 4013
	  	Sunrise of Parma	  	7766 Broadview Road	  	Cleveland	  	OH	  	44134	  	 Sunrise Senior

Living Management, Inc.
	  	 Sunrise Parma

Assisted Living, L.L.C.

								
	 4014
	  	Sunrise of Park Ridge	  	1725 Ballard Road	  	Park Ridge	  	IL	  	60068	  	 Sunrise Senior

Living Management, Inc.
	  	 Karrington of Park
 Ridge,
L.L.C.

								
	 4015
	  	Sunrise of Lincoln Park	  	2710 North Clark Street	  	Chicago	  	IL	  	60614	  	Sunrise Senior Living Management, Inc.	  	SZR Lincoln Park LLC
								
	 4016
	  	Sunrise of Westlake Village	  	3101 Townsgate Road	  	Westlake Village	  	CA	  	91361	  	 Sunrise Senior

Living Management, Inc.
	  	SZR Westlake Village LLC
								
	 4017
	  	Sunrise of North Hills	  	615 Spring Forest Road	  	Raleigh	  	NC	  	27609	  	 Sunrise Senior

Living Management, Inc.
	  	SZR North Hills LLC
								
	 4018
	  	Sunrise of Yorba Linda	  	4792 Lakeview Avenue	  	Yorba Linda	  	CA	  	92886	  	 Sunrise Senior

Living Management, Inc.
	  	SZR Yorba Linda LLC
								
	 4019
	  	Sunrise of Providence	  	5114 Providence Road	  	Charlotte	  	NC	  	28226	  	 Sunrise Senior

Living Management, Inc.
	  	 AL I/Providence Senior

Housing, LLC

								
	 4020
	  	Sunrise of Westtown	  	501 Skiles Boulevard	  	West Chester	  	PA	  	19382	  	 Sunrise Senior

Living Management, Inc.
	  	 AL One PA
 Investments,
LLC

								
	 4021
	  	Sunrise of Glen Ellyn	  	95 Carleton Avenue	  	Glen Ellyn	  	IL	  	60137	  	 Sunrise Senior

Living Management, Inc.
	  	AL I/Glen Ellyn Senior Housing, LLC
								
	 4022
	  	Sunrise of Exton	  	200 Sunrise Boulevard	  	Exton	  	PA	  	19341	  	 Sunrise Senior

Living Management, Inc.
	  	AL One PA Investments, LLC
								
	 4023
	  	Sunrise of La Costa	  	7020 Manzanita Street	  	Carlsbad	  	CA	  	92009	  	 Sunrise Senior

Living Management, Inc.
	  	 AL I/La Costa Senior
 Housing, LLC

  
 A-2

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	 4024
	  	Sunrise of Naperville	  	960 East Chicago Avenue	  	Naperville	  	IL	  	60540	  	 Sunrise Senior Living

Management, Inc.
	  	 AL I/Naperville Senior

Housing, LLC

								
	 4025
	  	Sunrise of East Brunswick	  	190 Summerhill Road	  	East Brunswick	  	NJ	  	8816	  	 Sunrise Senior Living

Management, Inc.
	  	 AL I/East Brunswick

Senior Housing, LLC

								
	 4026
	  	Sunrise of Richmond	  	1807 North Parham Road	  	Richmond	  	VA	  	23229	  	 Sunrise Senior Living

Management, Inc.
	  	 AL I/Richmond Senior

Housing, LLC

								
	 4027
	  	Sunrise of North Lynbrook	  	53 Franklin Avenue	  	Lynbrook	  	NY	  	11563	  	Sunrise Senior Living Management, Inc.	  	 AL I/North Lynbrook

Senior Housing, LLC

								
	 4028
	  	Sunrise of Stamford	  	251 Turn of River Road	  	Stamford	  	CT	  	6905	  	 Sunrise Senior Living

Management, Inc.
	  	AL I/Stamford Senior Housing, LLC
								
	 4029
	  	Sunrise of Woodcliff Lake	  	430 Chestnut Ridge Road	  	Woodcliff Lake	  	NJ	  	7677	  	Sunrise Senior Living Management, Inc.	  	 AL I/Woodcliff Lake

Senior Housing, LLC

								
	 4030
	  	Sunrise of Pinehurst	  	5195 West Quincy Avenue	  	Denver	  	CO	  	80236	  	Sunrise Senior Living Management, Inc.	  	 AL I/Pinehurst Senior

Housing, LLC

								
	 4031
	  	Sunrise of Troy	  	6870 Crooks Road	  	Troy	  	MI	  	48098	  	 Sunrise Senior Living

Management, Inc.
	  	Sunrise Troy Assisted Living, L.L.C.
								
	 4032
	  	Sunrise of Norwood	  	86 Saunders Road	  	Norwood	  	MA	  	2062	  	Sunrise Senior Living Management, Inc.	  	SZR Norwood LLC
								
	 4033
	  	Sunrise of Columbia	  	6500 Freetown Road	  	Columbia	  	MD	  	21044	  	Sunrise Senior Living Management, Inc.	  	SZR Columbia LLC
								
	 4034
	  	Sunrise of Rockville	  	8 Baltimore Road	  	Rockville	  	MD	  	20850	  	 Sunrise Senior Living

Management, Inc.
	  	SZR Rockville LLC
								
	 4035
	  	Sunrise of San Mateo	  	955 South El Camino Real	  	San Mateo	  	CA	  	94402	  	 Sunrise Senior Living

Management, Inc.
	  	SZR San Mateo LLC
								
	 4036
	  	Sunrise of Willowbrook	  	6300 Clarendon Hills Road	  	Willowbrook	  	IL	  	60514	  	 Sunrise Senior Living

Management, Inc.
	  	SZR Willowbrook LLC

  
 A-3

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	 4037
	  	Sunrise of Hillcrest	  	13001 Hillcrest Road	  	Dallas	  	TX	  	75251	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Hillcrest Senior Living, LLC
								
	 4038
	  	Sunrise of Bloomfield Hills	  	2080 Telegraph Road	  	Bloomfield Hills	  	MI	  	48302	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Bloomfield Senior Living, LLC
								
	 4039
	  	Sunrise of Alexandria	  	3520 Duke Street	  	Alexandria	  	VA	  	22304	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise of Alexandria Assisted Living, L.P.
								
	 4040
	  	Sunrise of Bloomingdale	  	129 East Lake Street	  	Bloomingdale	  	IL	  	60108	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Bloomingdale Assisted Living, L.L.C.
								
	 4041
	  	Sunrise of Blue Bell	  	795 Penllyn Pike	  	Blue Bell	  	PA	  	19422	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Assisted Living Limited Partnership III
								
	 4042
	  	Sunrise of Buffalo Grove	  	180 West Half Day	  	Buffalo Grove	  	IL	  	60089	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Buffalo Grove Assisted Living, L.L.C.
								
	 4043
	  	Sunrise of Canyon Crest	  	5265 Chapala Drive	  	Riverside	  	CA	  	92507	  	 Sunrise Senior

Living Management,
 Inc.
	  	Sunrise Riverside Assisted Living, L.P.
								
	 4044
	  	Sunrise of Fleetwood	  	500 North Columbus Avenue	  	Mount Vernon	  	NY	  	10552	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Fleetwood A.L., L.L.C.
								
	 4045
	  	Sunrise of Mission Viejo	  	26151 Country Club Drive	  	Mission Viejo	  	CA	  	92691	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Mission Viejo Assisted Living, L.L.C.
								
	 4046
	  	Sunrise of Northville	  	16100 Haggerty Road	  	Plymouth	  	MI	  	48170	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Northville Assisted Living, L.L.C.
								
	 4047
	  	Sunrise of Pacific Palisades	  	15441 West Sunset Boulevard	  	Pacific Palisades	  	CA	  	90272	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Pacific Palisades Assisted Living, L.P.
								
	 4048
	  	Sunrise of Rochester	  	500 East University Drive	  	Rochester	  	MI	  	48307	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Rochester Assisted Living, L.L.C.
								
	 4049
	  	Sunrise of Smithtown	  	30 Hauppauge, Route 111	  	Smithtown	  	NY	  	11787	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Smithtown A.L., L.L.C.

  
 A-4

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	4050	  	Sunrise of Sterling Canyon	  	25815 McBean Parkway	  	Valencia	  	CA	  	91355	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Sterling Canyon Assisted Living Limited Partnership
								
	4051	  	Sunrise of Arlington	  	1395 Massachusetts Avenue	  	Arlington	  	MA	  	2476	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Arlington, MA Assisted Living, L.L.C.
								
	4052	  	Sunrise of Baton Rouge	  	8502 Jefferson Highway	  	Baton Rouge	  	LA	  	70809	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Second Baton Rouge Assisted Living, L.L.C.
								
	4053	  	Sunrise of East Cobb	  	1551 Johnson Ferry Road	  	Marietta	  	GA	  	30062	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise East Cobb Assisted Living Limited Partnership
								
	4054	  	Sunrise of Edina	  	7128 France Avenue South	  	Edina	  	MN	  	55435	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Edina Assisted Living, L.L.C.
								
	4055	  	Sunrise of Fair Oaks	  	4820 Hazel Avenue	  	Fair Oaks	  	CA	  	95628	  	 Sunrise Senior

Living Management, Inc.
	  	Fair Oak Assisted Living L.L.C.
								
	4056	  	Sunrise of Huntcliff I	  	8592 Roswell Road	  	Atlanta	  	GA	  	30350	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Huntcliff Assisted Living Limited Partnership
								
	4057	  	Sunrise of Huntcliff II	  	8480 Roswell Road	  	Atlanta	  	GA	  	30350	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Huntcliff Assisted Living Limited Partnership
								
	4058	  	Sunrise of Ivey Ridge	  	2950 Old Alabama Road	  	Alpharetta	  	GA	  	30022	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Ivey Ridge Assisted Living Limited Partnership
								
	4059	  	Sunrise of Orchard	  	5975 South Holly Street	  	Littleton	  	CO	  	80121	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Orchard AL, L.L.C.
								
	4060	  	Sunrise of Palos Park	  	12828 South La Grange Road	  	Palos Park	  	IL	  	60464	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise TFE Acquisitions, L.L.C.
								
	4061	  	Sunrise of Westminster	  	10280 South Sheridan Boulevard	  	Westminster	  	CO	  	80020	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Second Westminster Assisted Living, L.L.C.
								
	4062	  	Sunrise of Wall	  	2600 Allaire Road	  	Wall	  	NJ	  	7719	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Wall Assisted Living, L.L.C.

  
 A-5

															
	 Fac.#
	  	 Facility Current Name
	  	 Address
	  	City	  	State	  	Zip	  	 Manager
	  	 Owner

	 4063
	  	Sunrise of Staten Island	  	801 Narrows Road North	  	Staten Island	  	NY	  	10314	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Staten Island SL, L.L.C.
								
	4064	  	Sunrise of Scottsdale	  	7370 East Gold Dust Avenue	  	Scottsdale	  	AZ	  	85258	  	 Sunrise Senior

Living Management, Inc.
	  	SZR Scottsdale, LLC
								
	4065	  	Sunrise of Sandy	  	2130 East 9400 South	  	Sandy	  	UT	  	84093	  	 Sunrise Senior

Living Management, Inc.
	  	SZR Sandy Senior Living, LLC
								
	4066	  	Sunrise of Rocklin	  	6100 Sierra College Boulevard	  	Rocklin	  	CA	  	95677	  	 Sunrise Senior

Living Management, Inc.
	  	Sunrise Rocklin Senior Living, LLC
								
	4067	  	Sunrise of Unionville	  	38 Swansea Road	  	Markham	  	ON	  	L3R 5K2	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4068	  	Sunrise of Mississauga	  	1279 Burnhamthorpe Road East	  	Mississauga	  	ON	  	L4Y 3V7	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4069	  	Sunrise of Beacon Hill (Victoria)	  	920 Humboldt Street	  	Victoria	  	BC	  	V8V 4W7	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4070	  	Sunrise of Burlington	  	5401 Lakeshore Road	  	Burlington	  	ON	  	L7L 6S5	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4071	  	Sunrise of Oakville	  	456 Trafalgar Road	  	Oakville	  	ON	  	L6J 3H9	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4072	  	Sunrise of Richmond Hill	  	9800 Yonge Street	  	Richmond Hill	  	ON	  	L4C 0P5	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4073	  	Sunrise of Lynn Valley	  	980 Lynn Valley Road North	  	Vancouver	  	BC	  	V7J 1Z7	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4074	  	Sunrise of Windsor	  	5065 Riverside Drive East	  	Windsor	  	ON	  	N8Y 5B3	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4075	  	Sunrise of Aurora	  	3 Golf Links Drive	  	Aurora	  	ON	  	L4G 7Y4	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4076	  	Sunrise of Erin Mills	  	4046 Erin Mills Parkway	  	Mississauga	  	ON	  	L5L 2W7	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4077	  	Sunrise of Vancouver	  	999 West 57th Avenue	  	Vancouver	  	BC	  	V6P 6Y9	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.
								
	4078	  	Sunrise of Vaughn (Steeles)	  	484 Steeles Avenue West	  	Vaughan	  	ON	  	L4J 1A2	  	 Sunrise North

Senior Living Ltd.
	  	PRP Senior Living Operating, Inc.

  
 A-6

 EXHIBIT B 

LIST OF PRE-STABILIZED FACILITIES 
 NONE 

  
 B-1

 EXHIBIT C 

EXPECTED ANOIS, BMFEANOI AMOUNTS AND INCENTIVE FEE TARGETS 

 

													
	 Community
	  	Expected ANOI,
2010 and
20111	 	 	BMFEANOI Amount,
2010 and
20112	 	 	Incentive Fee Target,
2010 and 20112	 
	 Springfield
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Morris Plains
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Old Tappan
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Granite Run
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Abington
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Wayne
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Westfield
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Haverford
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 North Ann Arbor
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Cherry Creek
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Cuyahoga Falls
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 New City
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Sunnyvale
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Parma
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Park Ridge
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Lincoln Park
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Westlake Village
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 North Hills
	  	 	[	***] 	 	 	[	***[ 	 	 	[	***] 
	 Yorba Linda
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Providence
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Westtown
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Glen Ellyn
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Exton
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 La Costa
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Naperville
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 East Brunswick
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Richmond
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 North Lynbrook
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Stamford
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Woodcliff Lake
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Pinehurst
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Troy
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Norwood
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Columbia
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Rockville
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 San Mateo
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Willowbrook
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Alexandria
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Bloomingdale
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Blue Bell
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Buffalo Grove
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Canyon Crest
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Fleetwood
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Mission Viejo
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Northville
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Pacific Palisades
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Rochester
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Smithtown
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 
	 Sterling Canyon
	  	 	[	***] 	 	 	[	***] 	 	 	[	***] 

  
 C-1

 EXPECTED ANOIS, BMFEANOI AMOUNTS AND INCENTIVE FEE TARGETS 

 

													
	 Community
	  	Expected ANOI,
2010 and
20111	 	  	BMFEANOI Amount,
2010 and
20112	 	  	Incentive Fee Target,
2010 and 20112	 
	 Arlington
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Baton Rouge
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 East Cobb
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Edina
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Fair Oaks
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Huntcliff I
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Huntcliff II
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Ivey Ridge
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Orchard
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Palos Park
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Westminster
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Wall
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Bloomfield
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Hillcrest
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Staten Island
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Scottsdale
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Sandy
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Rocklin
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
		  	 	 	 	  	 	 	 	  	 	 	 
	 Total US Communities
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
		  	 	 	 	  	 	 	 	  	 	 	 
	 Burlington
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Unionville
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Mississauga
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Windsor
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Aurora
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Victoria
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Lynn Valley
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Oakville
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Richmond Hill
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Vancouver
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Erin Mills
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
	 Steeles
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
		  	 	 	 	  	 	 	 	  	 	 	 
	 Total Canadian Communities
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
		  	 	 	 	  	 	 	 	  	 	 	 

  

	1	 Amounts are in local currency 

	2	 Amounts are in local currency and subject to Section 7.2.3 

  
 C-2

 EXHIBIT D 

ARM’S LENGTH 
  

	1.	Arm’s Length 

 For
the purposes of this Agreement: 
  

	 	(a)	Related Persons are deemed not to deal with each other at arm’s length; and 

 

	 	(b)	it is a question of fact whether Persons not related to each other were at a particular time dealing with each other at arm’s length. 

 

	2.	Definition of “Related Persons” – “Related Persons” means 

 

	 	(a)	individuals connected by blood relationship, marriage or adoption; 

  

	 	(b)	a corporation and 

  

	 	(i)	a Person who Controls the corporation if it is Controlled by one Person, 

  

	 	(ii)	a Person who is a member of a Related Group that Controls the corporation, or 

 

	 	(iii)	any Person related to a Person described in subparagraph (i) or (ii); and 

 

	 	(c)	any two corporations 

  

	 	(i)	if they are Controlled by the same Person or group of Persons, 

  

	 	(ii)	if each of the corporations is Controlled by one Person and the Person who Controls one of the corporations is related to the Person who Controls the other corporation,

  

	 	(iii)	if one of the corporations is Controlled by one Person and that Person is related to any member of a Related Group that Controls the other corporation,

  

	 	(iv)	if one of the corporations is Controlled by one Person and that Person is related to each member of an Unrelated Group that Controls the other corporation,

  

	 	(v)	if any member of a Related Group that Controls one of the corporations is related to each member of an Unrelated Group that Controls the other corporation, or

  

	 	(vi)	if each member of an Unrelated Group that Controls one of the corporations is related to at least one member of an Unrelated Group that Controls the other corporation.

  
 D-1

	3.	Corporations related through a third corporation – Where two corporations are related to the same corporation within the meaning of subsection (2), they
shall, for the purposes of subsections (1) and (2), be deemed to be related to each other. 

  

	4.	Relation where amalgamation or merger – Where there has been an amalgamation or merger of two or more corporations and the new corporation formed as a
result of the amalgamation or merger and any predecessor corporation would have been related immediately before the amalgamation or merger if the new corporation were in existence at that time, and if the persons who were the shareholders of the new
corporation immediately after the amalgamation or merger were the shareholders of the new corporation at that time, the new corporation and any such predecessor corporation shall be deemed to have been related persons. 

 

	5.	Definitions concerning groups 

  

	 	(a)	“Related Group” means a group of Persons each member of which is related to every other member of the group; 

 

	 	(b)	“Unrelated Group” means a group of Persons that is not a Related Group. 

 

	6.	Control by related groups, options, etc. 

  

	 	(a)	where a Related Group is in a position to Control a corporation, it shall be deemed to be a Related Group that Controls the corporation whether or not it is part of a
larger group by which the corporation is in fact Controlled; 

  

	 	(b)	where at any time a Person has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently,

  

	 	(i)	to, or to acquire, shares of the capital stock of a corporation or to control the voting rights of such shares, the Person is, except where the right is not exercisable
at that time because the exercise thereof is contingent on the death, bankruptcy or permanent disability of an individual, deemed to have the same position in relation to the Control of the corporation as if the Person owned the shares at that time;

  

	 	(ii)	to cause a corporation to redeem, acquire or cancel any shares of its capital stock owned by other shareholders of the corporation, the Person is, except where the
right is not exercisable at that time because the exercise thereof is contingent on the death, bankruptcy or permanent disability of an individual, deemed to have the same position in relation to the Control of the corporation as if the shares were
so redeemed, acquired or cancelled by the corporation at that time; 

  

	 	(iii)	 to, or to acquire or control, voting rights in respect of shares of the capital stock of a corporation, the Person is, except where the right is not
exercisable at that time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual, deemed to have the 

  
 D-2

	 	 
same position in relation to the Control of the corporation as if the Person could exercise the voting rights at that time; or 

 

	 	(iv)	to cause the reduction of voting rights in respect of shares, owned by other shareholders, of the capital stock of a corporation, the Person is, except where the right
is not exercisable at that time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual, deemed to have the same position in relation to the Control of the corporation as if the voting rights were so
reduced at that time; and 

  

	 	(c)	where a Person owns shares in two or more corporations, the Person is, as shareholder of one of the corporations, deemed to be related to himself, herself or itself as
shareholder of each of the corporations. 

  

	7.	Blood relationship, etc. – Persons are connected by 

  

	 	(a)	blood relationship if one is the child or other descendant of the other or one is the brother or sister of the other; and 

 

	 	(b)	marriage if one is married to the other or to a Person who is so connected by blood relationship to the other. 

 

	8.	Definition of “Control” – “Control” means 

  

	 	(a)	when applied to the relationship between a Person and a corporation, the beneficial ownership by such Person at the relevant time of shares of such corporation carrying
more than the greater of 50% of the voting rights ordinarily exercisable at meetings of shareholders of such corporation and the percentage of voting rights ordinarily exercisable at meetings of shareholders of such corporation that are sufficient
to elect a majority of the directors of such corporation; and 

  

	 	(b)	when applied to the relationship between a Person and a partnership or joint venture, the beneficial ownership by such Person at the relevant time of more than 50% of
the ownership interests of the partnership or joint venture in circumstances where it can reasonably be expected that such Person directs the affairs of the partnership or joint venture; 

and the words “Controlled by”, “Controlling” and similar words have corresponding meanings; provided that a Person
(the “first-mentioned Person”) who Controls a corporation, partnership or joint venture (the “second-mentioned Person”) shall be deemed to Control a corporation, partnership or joint venture which is Controlled by the
second-mentioned Person and so on; and the words “Control Directly” and similar words mean Control otherwise than by reason of the application of the proviso above and the words “Control Indirectly” and similar words mean control
by reason of the application of such proviso. For greater certainty, a Person who owns shares of a corporation shall not be deemed to have beneficial ownership of the assets of such corporation, whether such assets comprise shares in another
corporation or otherwise, but may, by virtue of the 

  
 D-3

 
proviso above, nevertheless be deemed to Control such Corporation or any entity which it, in turn, Controls. 

  
 D-4

 EXHIBIT E 

VENTAS TENANTS 

	1.	Beverly Enterprises, Inc. 

  

	2.	Brookdale Senior Living, Inc. 

  

	3.	Capital Senior Living Corp. 

  

	4.	Assisted Living Concepts, Inc. 

  

	5.	CommuniCare Health Services 

  

	6.	Emeritus Corporation 

  

	7.	Genesis Healthcare Corp. 

  

	8.	Harborside Healthcare Corporation 

  

	9.	Fillmore Strategic Investors, LLC 

  

	10.	Kindred Healthcare, Inc. 

  

	11.	Prime Care Properties, LLC 

  

	12.	ResCare, Inc. 

  

	13.	Senior Care, Inc. 

  

	14.	Summerville Senior Living, Inc. 

  

	15.	Sun Healthcare Group, Inc. 

  

	16.	Trans Healthcare, Inc. 

  

	17.	Integral Senior Living 

  

	18.	Atria Senior Living, Inc. 

  
 E-1

 EXHIBIT F 

APPLICABLE FACILITY TRANSLATION RATES 
  

									
	 Community
	  	Management
Agreement Date	 	  	FX 
Translation
Rate1	 
	 US Communities
	  				  			
	 Springfield
	  	 	12/23/04	  	  	 	1.2414	  
	 Morris Plains
	  	 	12/23/04	  	  	 	1.2414	  
	 Old Tappan
	  	 	12/23/04	  	  	 	1.2414	  
	 Granite Run
	  	 	12/23/04	  	  	 	1.2414	  
	 Abington
	  	 	12/23/04	  	  	 	1.2414	  
	 Wayne
	  	 	12/23/04	  	  	 	1.2414	  
	 Westfield
	  	 	12/23/04	  	  	 	1.2414	  
	 Haverford
	  	 	12/23/04	  	  	 	1.2414	  
	 North Ann Arbor
	  	 	12/23/04	  	  	 	1.2414	  
	 Cherry Creek
	  	 	12/23/04	  	  	 	1.2414	  
	 Cuyahoga Falls
	  	 	12/23/04	  	  	 	1.2414	  
	 New City
	  	 	12/23/04	  	  	 	1.2414	  
	 Sunnyvale
	  	 	12/23/04	  	  	 	1.2414	  
	 Parma
	  	 	12/23/04	  	  	 	1.2414	  
	 Park Ridge
	  	 	12/23/04	  	  	 	1.2414	  
	 Lincoln Park
	  	 	6/17/05	  	  	 	1.2355	  
	 Westlake Village
	  	 	6/17/05	  	  	 	1.2355	  
	 North Hills
	  	 	6/17/05	  	  	 	1.2355	  
	 Yorba Linda
	  	 	10/4/05	  	  	 	1.2355	  
	 Providence
	  	 	8/9/05	  	  	 	1.2153	  
	 Westtown
	  	 	8/9/05	  	  	 	1.2153	  
	 Glen Ellyn
	  	 	8/9/05	  	  	 	1.2153	  
	 Exton
	  	 	8/9/05	  	  	 	1.2153	  
	 La Costa
	  	 	8/9/05	  	  	 	1.2153	  
	 Naperville
	  	 	8/9/05	  	  	 	1.2153	  
	 East Brunswick
	  	 	8/9/05	  	  	 	1.2153	  
	 Richmond
	  	 	8/9/05	  	  	 	1.2153	  
	 North Lynbrook
	  	 	8/9/05	  	  	 	1.2153	  
	 Stamford
	  	 	8/9/05	  	  	 	1.2153	  
	 Woodcliff Lake
	  	 	8/9/05	  	  	 	1.2153	  
	 Pinehurst
	  	 	8/9/05	  	  	 	1.2153	  
	 Troy
	  	 	8/9/05	  	  	 	1.2153	  
	 Norwood
	  	 	12/9/05	  	  	 	1.1583	  
	 Columbia
	  	 	12/9/05	  	  	 	1.1583	  
	 Rockville
	  	 	12/9/05	  	  	 	1.1583	  
	 San Mateo
	  	 	12/9/05	  	  	 	1.1583	  

  
 F-1

									
	 Community
	  	Management
Agreement Date	 	  	FX 
Translation
Rate1	 
	 US Communities
	  				  			
	 Willowbrook
	  	 	3/30/06	  	  	 	1.1719	  
	 Alexandria
	  	 	9/13/06	  	  	 	1.1203	  
	 Bloomingdale
	  	 	9/13/06	  	  	 	1.1203	  
	 Blue Bell
	  	 	9/13/06	  	  	 	1.1203	  
	 Buffalo Grove
	  	 	9/13/06	  	  	 	1.1203	  
	 Canyon Crest
	  	 	9/13/06	  	  	 	1.1203	  
	 Fleetwood
	  	 	9/13/06	  	  	 	1.1203	  
	 Mission Viejo
	  	 	9/13/06	  	  	 	1.1203	  
	 Northville
	  	 	9/13/06	  	  	 	1.1203	  
	 Pacific Palisades
	  	 	9/13/06	  	  	 	1.1203	  
	 Rochester
	  	 	9/13/06	  	  	 	1.1203	  
	 Smithtown
	  	 	9/13/06	  	  	 	1.1203	  
	 Sterling Canyon
	  	 	9/13/06	  	  	 	1.1203	  
	 Arlington
	  	 	9/13/06	  	  	 	1.1203	  
	 Baton Rouge
	  	 	9/13/06	  	  	 	1.1203	  
	 East Cobb
	  	 	9/13/06	  	  	 	1.1203	  
	 Edina
	  	 	9/13/06	  	  	 	1.1203	  
	 Fair Oaks
	  	 	9/13/06	  	  	 	1.1203	  
	 Huntcliff Summit I
	  	 	9/13/06	  	  	 	1.1203	  
	 Huntcliff Summit II
	  	 	9/13/06	  	  	 	1.1203	  
	 Ivey Ridge
	  	 	9/13/06	  	  	 	1.1203	  
	 Orchard
	  	 	9/13/06	  	  	 	1.1203	  
	 Palos Park
	  	 	9/13/06	  	  	 	1.1203	  
	 Westminster
	  	 	9/13/06	  	  	 	1.1203	  
	 Wall
	  	 	9/13/06	  	  	 	1.1203	  
	 Bloomfield
	  	 	6/15/05	  	  	 	1.2471	  
	 Hillcrest
	  	 	6/15/05	  	  	 	1.2471	  
	 Staten Island
	  	 	6/19/07	  	  	 	1.0716	  
	 Scottsdale
	  	 	3/30/07	  	  	 	1.1529	  
	 Sandy
	  	 	3/30/07	  	  	 	1.1529	  
	 Rocklin
	  	 	3/30/07	  	  	 	1.1529	  
	 Canadian Communities
	  				  			
	 Burlington
	  	 	12/23/04	  	  	 	1.0000	  
	 Unionville
	  	 	12/23/04	  	  	 	1.0000	  
	 Mississauga
	  	 	12/23/04	  	  	 	1.0000	  
	 Windsor
	  	 	12/23/04	  	  	 	1.0000	  
	 Aurora
	  	 	12/23/04	  	  	 	1.0000	  
	 Victoria
	  	 	12/23/04	  	  	 	1.0000	  
	 Lynn Valley
	  	 	12/23/04	  	  	 	1.0000	  

  
 F-2

									
	 Community
	  	Management
Agreement Date	 	  	FX 
Translation
Rate1	 
	 Canadian Communities
	  				  			
	 Oakville
	  	 	12/23/04	  	  	 	1.0000	  
	 Richmond Hill
	  	 	12/23/04	  	  	 	1.0000	  
	 Vancouver
	  	 	12/30/05	  	  	 	1.0000	  
	 Erin Mills
	  	 	3/30/05	  	  	 	1.0000	  
	 Steeles
	  	 	3/30/06	  	  	 	1.0000	  

  

	1	 The rate to translate USD to CAD is equal to the closing exhange rate on the day in which the REIT acquired the property. 

  
 F-3

 EXHIBIT G 

CERTAIN ACCRUED BUT NOT YET DUE FEES 
 AND EXPENSES REIMBURSEMENTS 
 1. Any claim by any of the Sunrise Parties for
consideration due to seller pursuant to section 4.2 of that certain Fixed Price Acquisition Agreement relating to the community commonly known as Sunrise of Sandy. 
 2. Intercompany amounts due to/due from accounts between an Owner and a Manager for the month of September 2010. 

  
 G-1

 EXHIBIT H 

CERTAIN ACCRUED FEES OR PAYMENTS 
 1. Any amount that is owed to Ventas SSL or its Affiliates due to Base Management Fees having been calculated and paid to the Sunrise Parties with respect to the period from April 1, 2010 through the
PSA Date based upon the provisions of the Existing Management Agreements and the Existing Master Agreement instead of based upon the provisions of Section 5.1 and the other provisions of this Agreement and the provisions of the Management
Agreements. 
 2. Intercompany amounts due to/due from accounts between an Owner and a Manager for the month of September 2010. 

  
 H-1

 EXHIBIT I 

BASE MANAGEMENT FEES – JANUARY 1, 2010 THROUGH MARCH 31, 2010 

 

					
	 	  	Jan-Mar
2010	 
	 Canadian Properties (in Canadian Dollars)
	  			
	 Sunrise of Unionville (4067)
	  	 	[***]	  
	 Sunrise of Mississauga (4068)
	  	 	[***]	  
	 Sunrise of Victoria (4069)
	  	 	[***]	  
	 Sunrise of Burlington (4070)
	  	 	[***]	  
	 Sunrise of Oakville (4071)
	  	 	[***]	  
	 Sunrise of Richmond Hill (4072)
	  	 	[***]	  
	 Sunrise of Lynn Valley (4073)
	  	 	[***]	  
	 Sunrise of Windsor (4074)
	  	 	[***]	  
	 Sunrise of Aurora (4075)
	  	 	[***]	  
	 Sunrise of Erin Mills (4076)
	  	 	[***]	  
	 Sunrise of Vancouver (4077)
	  	 	[***]	  
	 Sunrise of Steeles (4078)
	  	 	[***]	  
		  	 	 	 
	 Total CA Dollars
	  	 	[***]	  
	 US Properties (in US Dollars)
	  			
	 Sunrise of Springfield (4000)
	  	 	[***]	  
	 Sunrise of Morris Plains (4001)
	  	 	[***]	  
	 Sunrise of Old Tappan (4002)
	  	 	[***]	  
	 Sunrise of Granite Run (4003)
	  	 	[***]	  
	 Sunrise of Abington (4004)
	  	 	[***]	  
	 Sunrise of Wayne (4005)
	  	 	[***]	  
	 Sunrise of Westfield (4006)
	  	 	[***]	  
	 Sunrise of Haverford (4007)
	  	 	[***]	  
	 Sunrise of North Ann Arbor (4008)
	  	 	[***]	  
	 Sunrise of Cherry Creek (4009)
	  	 	[***]	  
	 Sunrise of Cuyahoga Falls (4010)
	  	 	[***]	  
	 Sunrise of New City (4011)
	  	 	[***]	  
	 Sunrise of Sunnyvale (4012)
	  	 	[***]	  
	 Sunrise of Parma (4013)
	  	 	[***]	  
	 Sunrise of Park Ridge (4014)
	  	 	[***]	  
	 Sunrise of Lincoln Park (4015)
	  	 	[***]	  
	 Sunrise of Westlake Village (4016)
	  	 	[***]	  
	 Sunrise of North Hills (4017)
	  	 	[***]	  
	 Sunrise of Yorba Linda (4018)
	  	 	[***]	  
	 Sunrise of Providence (4019)
	  	 	[***]	  
	 Sunrise of Westtown (4020)
	  	 	[***]	  
	 Sunrise of Glen Ellyn (4021)
	  	 	[***]	  
	 Sunrise of Exton (4022)
	  	 	[***]	  
	 Sunrise of La Costa (4023)
	  	 	[***]	  
	 Sunrise of Naperville (4024)
	  	 	[***]	  
	 Sunrise of East Brunswick (4025)
	  	 	[***]	  
	 Sunrise of Richmond (4026)
	  	 	[***]	  
	 Sunrise of North Lynbrook (4027)
	  	 	[***]	  
	 Sunrise of Stamford (4028)
	  	 	[***]	  
	 Sunrise of Woodcliff Lake (4029)
	  	 	[***]	  
	 Sunrise of Pinehurst (4030)
	  	 	[***]	  
	 Sunrise of Troy (4031)
	  	 	[***]	  
	 Sunrise of Norwood (4032)
	  	 	[***]	  
	 Sunrise of Columbia (4033)
	  	 	[***]	  
	 Sunrise of Rockville (4034)
	  	 	[***]	  
	 Sunrise of San Mateo (4035)
	  	 	[***]	  
	 Sunrise of Willowbrook (4036)
	  	 	[***]	  
	 Sunrise of Hillcrest (4037)
	  	 	[***]	  
	 Sunrise of Bloomfield Hills (4038)
	  	 	[***]	  
	 Sunrise of Alexandria (4039)
	  	 	[***]	  
	 Sunrise of Bloomingdale (4040)
	  	 	[***]	  
	 Sunrise of Blue Bell (4041)
	  	 	[***]	  
	 Sunrise of Buffalo Grove (4042)
	  	 	[***]	  
	 Sunrise of Canyon Crest (4043)
	  	 	[***]	  
	 Sunrise of Fleetwood (4044)
	  	 	[***]	  
	 Sunrise of Mission Viejo (4045)
	  	 	[***]	  
	 Sunrise of Northville (4046)
	  	 	[***]	  
	 Sunrise of Pacific Palisades (4047)
	  	 	[***]	  
	 Sunrise of Rochester (4048)
	  	 	[***]	  
	 Sunrise of Smithtown (4049)
	  	 	[***]	  
	 Sunrise of Sterling Canyon (4050)
	  	 	[***]	  
	 Sunrise of Arlington (4051)
	  	 	[***]	  
	 Sunrise of Baton Rouge (4052)
	  	 	[***]	  
	 Sunrise of East Cobb (4053)
	  	 	[***]	  
	 Sunrise of Edina (4054)
	  	 	[***]	  
	 Sunrise of Fair Oaks (4055)
	  	 	[***]	  
	 Sunrise of Huntcliff I (4056)
	  	 	[***]	  
	 Sunrise of Huntcliff II (4057)
	  	 	[***]	  
	 Sunrise of Ivey Ridge (4058)
	  	 	[***]	  
	 Sunrise of Orchard (4059)
	  	 	[***]	  
	 Sunrise of Palos Park (4060)
	  	 	[***]	  
	 Sunrise of Westminster (4061)
	  	 	[***]	  
	 Sunrise of Wall (4062)
	  	 	[***]	  
	 Sunrise of Staten Island (4063)
	  	 	[***]	  
	 Sunrise of Scottsdale (4064)
	  	 	[***]	  
	 Sunrise of Sandy (4065)
	  	 	[***]	  
	 Sunrise of Rocklin (4066)
	  	 	[***]	  
		  	 	 	 
	 Total US Dollars
	  	 	[***]	  

  
 I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00185-of-00352.parquet"}]]