Document:

Executive Change of Control Agreement dated as of March 27, 2015, among State Auto Financial Corporation, State Auto Property & Casualty Insurance Company, State Automobile Mutual Insurance Company and Michael E. LaRocco

EXHIBIT 10.02

EXECUTIVE CHANGE OF CONTROL AGREEMENT
This Executive Change of Control Agreement (this “Agreement”) is made as of March 27, 2015 to be effective as of April 27, 2015 (the “Effective Date”), by and among State Auto Financial Corporation, an Ohio corporation (“State Auto Financial”), State Auto Property and Casualty Insurance Company, an Iowa-domiciled insurance company (“State Auto P&C”), State Automobile Mutual Insurance Company, an Ohio-domiciled mutual insurance company (“State Auto Mutual”), and Michael E. LaRocco (“Executive”).  State Auto Financial, State Auto P&C, State Auto Mutual and each of their respective insurer subsidiaries and affiliates, present and future, are hereinafter collectively referred to as “State Auto.”
Background Information
		
	A.
	State Auto P&C is the principal operating subsidiary of State Auto Financial and the employer of record of all employees of State Auto.  State Auto Financial is a majority-owned, publicly-traded holding company subsidiary of State Auto Mutual.  State Auto Mutual is the ultimate controlling person in the State Auto holding company system.

		
	B.
	State Auto desires to establish and maintain a sound and vital management team as an important part of State Auto’s overall corporate strategy and as an essential means of protecting and enhancing the interests of State Auto, the Boards of State Auto Financial and State Auto Mutual (collectively, the “Boards”), and their shareholders and policyholders, respectively.  As part of this corporate strategy, State Auto desires to act in the best interests of State Auto to address Executive’s continued service to State Auto and available benefits in the event of an actual or threatened Change of Control (as defined herein) of State Auto Financial or State Auto Mutual.

		
	C.
	Executive is a party to an Employment Agreement with State Auto dated as of the same date as this Agreement, as it may be amended from time to time (the “Employment Agreement”).  The Employment Agreement does not address the impact of a Change in Control, except to incorporate by reference the provisions of this Agreement.  Therefore, in the event of a Change of Control and the termination of Executive’s employment, as described in Section 2.2 of this Agreement within the time period described therein, the payments and benefits provided to Executive under this Agreement will be in lieu of any payments or benefits that might otherwise be payable under the Employment Agreement.

Statement of Agreement
The parties hereby acknowledge the accuracy of the foregoing Background Information and hereby agree as follows:
Article I    Definitions.
As used in this Agreement, the following defined terms shall have the meanings set forth below:
		
	1.1
	Annual Base Salary means the greater of (a) the highest annual rate of base salary in effect for Executive during the 12-month period immediately prior to a Change of Control, or (b) the annual rate of base salary in effect on the date Executive’s employment is terminated.

		
	1.2
	Average Annual Award means the average of the annual aggregate bonus under the Short Term Incentive Plans (or its successors) earned by Executive in each of the three calendar years immediately preceding the calendar year in which the Change of Control occurs.

1.3    Cause shall be given the meaning used in the Employment Agreement.  
1.4    Change of Control means the occurrence of any of the following:
		
	(a)
	Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of State Auto Financial representing 30% or more of the combined voting power of State Auto Financial’s then outstanding securities, excluding (i) any acquisition by State Auto Financial or any Subsidiary; (ii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by State Auto Financial, a Subsidiary or State Auto Mutual; or (iii) any acquisition by State Auto Mutual; or

		
	(b)
	A majority of the Board of Directors of State Auto Financial at any time is comprised of other than Continuing Directors; or

		
	(c)
	Any event or transaction State Auto Financial would be required to report in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act; or

(d)    Any of the following occurs:
		
	(i)
	a merger or consolidation of State Auto Financial, other than a merger or consolidation in which the voting securities of State Auto Financial immediately prior to the merger or consolidation continue to represent (either by remaining outstanding or being converted into securities of the surviving entity) more than 50% of the combined voting power of State Auto Financial or surviving entity immediately after the merger or consolidation with another entity;

		
	(ii)
	a sale, exchange, lease, mortgage, pledge, transfer, or other disposition (in a single transaction or a series of related transactions) of all or substantially all of the assets of State Auto Financial which shall include, without limitation, the sale of assets or earning power aggregating more than 50% of the assets or earning power of State Auto Financial on a consolidated basis;

		
	(iii)
	a reorganization, reverse stock split, or recapitalization of State Auto Financial which would result in any of the foregoing; or

		
	(iv)
	a transaction or series of related transactions having, directly or indirectly.  the same effect as any of the foregoing.

(e)    As respects State Auto Mutual, any of the following occurs:
		
	(i)
	State Auto Mutual affiliates with or is merged into or consolidated with a third party and as a result, a majority of the Board of Directors of State Auto Mutual or its successor is comprised of other than Continuing Directors; or

		
	(ii)
	State Auto Mutual completes a conversion to a stock insurance company and as a result of which a majority of the Board of Directors of State Auto Mutual or its successor is comprised of other than Continuing Directors.

Notwithstanding the foregoing, for purposes of this Change of Control definition, the percentage of securities ownership listed under subsection (a) above (i.e., 30%) shall increase or decrease, as the case may be, such that the percentage of securities ownership is consistent with any future changes to the percentage of securities ownership represented in the Change of Control definition in Section 11(B)(2)(a) (or any successor Section) of the State Auto Financial Corporation 2009 Equity Incentive Compensation Plan, as amended from time to time, or any similar provision in any successor plan.
1.5    Code means the Internal Revenue Code of 1986, as amended.
		
	1.6
	Confidential Information shall be given the meaning used in the Employment Agreement.

		
	1.7
	Continuing Director of State Auto Financial or State Auto Mutual, as the case may be, means a director who was either:

		
	(a)
	first elected or appointed as a director on or prior to the Effective Date; or

		
	(b)
	subsequent to the Effective Date was elected or appointed as a director if such director was first nominated by the Nominating Committee of State Auto Financial or State Auto Mutual, as the case may be, or appointed by at least two-thirds of the total number of the then Continuing Directors of State Auto Financial or State Auto Mutual, as the case may be.

		
	1.8
	Directly or Indirectly means on Executive’s own behalf, or as an officer, director, shareholder, member, partner, owner, agent, consultant, advisor, coach or employee of any corporation, partnership, limited liability company or other entity.

		
	1.9
	Disability shall be given the meaning used in the Employment Agreement.

		
	1.10
	Employee Benefits means the benefits and service credit for benefits as provided under any and all employee retirement income and welfare benefit policies, plans, programs or arrangements in which Executive is entitled to participate, including without limitation any stock option, stock purchase, stock appreciation, savings, pension, supplemental executive retirement, or other retirement income or welfare benefit, deferred compensation, incentive compensation, group or other life, health, medical/hospital, or other insurance (whether funded by actual insurance or self-insured by State Auto), disability, salary continuation, expense reimbursement and other employee benefit policies, plans, programs or arrangements that may now exist (and as may be modified from time to time) or any equivalent successor policies, plans, programs or arrangements that may be adopted hereafter (and as may be modified from time to time), providing benefits at least as great in a monetary equivalent as are payable thereunder prior to a Change of Control.

1.11    Good Reason means the occurrence of any one or more of the following:
		
	(a)
	The assignment to Executive of duties which are materially and adversely different from or inconsistent with the duties, responsibilities and status of Executive’s position at any time during the 12-month period prior to a Change of Control, or which result in a significant reduction in Executive’s authority and responsibility as the Chief Executive Officer of State Auto;

		
	(b)
	Except as may be required due to Exigent Circumstances, as defined in the Employment Agreement, (i) a reduction by State Auto in Executive’s Annual Base Salary in place as of the day immediately prior to a Change of Control; (ii) after a Change of Control the failure to grant salary increases and bonus payments on a basis comparable to those granted to other executives of State Auto; or (iii) a reduction of Executive’s most recent Average Annual Award prior to a Change of Control;

		
	(c)
	After a Change of Control, a demand by State Auto that Executive relocate to a location in excess of 35 miles from the location where Executive is based as of the day immediately prior to a Change of Control, or in the event of any such relocation with Executive’s express written consent, the failure of State Auto or a Subsidiary to pay (or reimburse Executive for) all reasonable moving expenses incurred by Executive relating to a change of principal residence in connection with such relocation and to indemnify Executive against any loss in the sale of Executive’s principal residence in connection with any such change of residence and any reasonable expenses incurred by Executive that are directly attributable to such sale (for purposes of this provision, “loss” is understood to mean a sale of such principal residence at a price less than the adjusted basis in such residence);

		
	(d)
	The failure of State Auto to obtain a satisfactory agreement from any successor to State Auto to assume and agree to perform this Agreement, as contemplated in Section 5.1 of this Agreement;

		
	(e)
	The failure of State Auto to provide Executive with substantially the same Employee Benefits that were provided to him immediately prior to the Change of Control, or with a package of Employee Benefits that, though one or more of such benefits may vary from those in effect immediately prior to a Change of Control, is substantially comparable in all material respects to such Employee Benefits taken as a whole; or

		
	(f)
	Any material reduction in Executive’s compensation or benefits or a material adverse change in Executive’s location or duties, if such material reduction or material adverse change occurs at any time after the commencement of any discussion with a third party relating to a possible Change of Control of State Auto involving such third party, if such material reduction or material adverse change is in contemplation of such possible Change of Control and such Change of Control is actually consummated within 12 months after the date of such material reduction or material adverse change.

The existence of Good Reason shall not be affected by Executive’s subsequent incapacity due to physical or mental illness.  Executive’s continued employment shall not constitute a waiver of Executive’s rights with respect to any circumstance constituting Good Reason under this Agreement.  Executive shall provide State Auto with written notice of his intent to terminate with Good Reason within a period not to exceed 90 calendar days of the initial existence of the condition constituting Good Reason.  State Auto shall have a period of 30 calendar days in which it may remedy the condition and prevent Executive’s termination for Good Reason.
		
	1.12
	LBP means the State Auto Financial Corporation Leadership Bonus Plan, as may be amended.

		
	1.13
	Severance Benefits means the benefits described in Section 2.1 of this Agreement, as adjusted by the applicable provisions of Section 9.1 of this Agreement.

		
	1.14
	Short Term Incentive Plans means the LBP and any successor short term incentive compensation plan of State Auto.

		
	1.15
	Subsidiary means any corporation, insurance company or other entity a majority of the voting control of which is directly or indirectly owned or controlled at the time by State Auto Financial.

		
	1.16
	Term means the period commencing on the Effective Date of this Agreement and ending on December 31, 2018, both dates inclusive; provided, however, that if a Change of Control occurs during the Term of this Agreement, the Term of this Agreement will be extended for the lesser of 36 months beyond the end of the month in which any such Change of Control occurs or the number of months beyond the end of the month in which any such Change of Control occurs until Executive attains age 65.  Notwithstanding the foregoing, this Agreement shall terminate upon the termination of the Employment Agreement; provided, however, that Sections 2.3 and 2.4, Articles IV, VII through X, and Sections 11.3, 11.6 and 11.8 of the Agreement shall survive Executive’s termination of employment.

Article II    Change of Control.
2.1    Severance Benefits.  In the event that State Auto shall undergo a Change of Control, and if Executive then becomes entitled to receive Severance Benefits, State Auto or its respective successor, shall pay or provide to Executive the following Severance Benefits, adjusted by the applicable provisions of Section 9.1:
		
	(a)
	Annual Base Salary.  In addition to any accrued compensation payable as of Executive’s termination of employment, a lump sum cash amount equal to Executive’s Annual Base Salary multiplied by 2.99, unless at the time of such employment termination Executive is within two years of age 65, in which case the benefit due under this subsection (a) shall not exceed Executive’s Annual Base Salary multiplied by a factor equal to the number of months remaining until Executive attains age 65 presented as a whole integer and a fraction of a partial year (e.g., 15 months equals 1.25).

		
	(b)
	Annual Incentive Compensation.  In addition to any compensation otherwise payable pursuant to Executive’s bonus arrangements, a lump sum cash amount equal to Executive’s Average Annual Award multiplied by 2.99, unless at the time of such employment termination Executive is within two years of age 65, in which case the benefit due under this subsection (b) shall not exceed Executive’s Average Annual Award multiplied by a factor equal to the number of months remaining until Executive attains age 65 presented as a whole integer and a fraction of a partial year (e.g., 15 months equals 1.25).  In addition, Executive shall be entitled to receive a prorated annual incentive payment for the year in which the Change of Control occurred, if otherwise eligible for such annual incentive.  Such prorated annual incentive amount, if any, will be determined based on the target award levels established for the year in which the Change of Control occurred.

		
	(c)
	Stock Options and Other Equity Awards.  Stock options and any other types of equity awards (e.g., restricted shares, performance shares, performance units, etc.) held by Executive become exercisable upon a Change of Control according to the terms of the applicable stock option or equity plan and related agreement (if any) under which such stock options or other equity awards were granted.

		
	(d)
	Outplacement.  State Auto shall pay all fees for outplacement services incurred by Executive up to a maximum of $35,000, plus provide a travel expense account of up to $5,000 to reimburse job search travel.  Such expenses and reimbursements shall be limited to those expenses incurred within the two calendar years following the calendar year of Executive’s separation from service or prior to Executive’s attainment of age 65, if Executive is within two years of age 65 at the time of the Change in Control.  Such expenses shall be paid no later than December 31st of the calendar year following the applicable calendar year in which such reimbursable expense was incurred.

		
	(e)
	Health Insurance Reimbursement.  State Auto shall pay Executive an amount equal to State Auto’s then current monthly per employee cost of providing State Auto’s health insurance benefit multiplied by 36, unless at the time of the Change in Control Executive is within two years of age 65, in which case the health insurance reimbursement provided in this Section 2.1(e) shall be multiplied by the number of months remaining until Executive attains age 65.

In computing and determining Severance Benefits under subsections (a) and (b), above, a decrease in Executive’s salary or incentive bonus potential shall be disregarded if such decrease occurs within six months before a Change of Control, is in contemplation of such Change of Control, and is taken to avoid the effect of this Agreement should such action be taken after such Change of Control.  In such event, the salary and incentive bonus potential used to determine Severance Benefits shall be that in effect immediately before the decrease that is disregarded pursuant to this Section 2.1.

The Severance Benefits provided in subsections (a), (b) and (e) above shall be contingent upon Executive’s execution of a valid release of State Auto or its successors and their respective officers, directors, agents and employees, from any and all actions, suits, proceedings, claims and demands relating to Executive’s employment.  Provided such release is executed and enforceable, the payment of Severance Benefits shall commence no later than 90 days after Executive’s termination of employment.  In the event that the time period required by applicable law to obtain a valid and enforceable release (including the expiration of any revocation period) begins in one calendar year and ends in another calendar year, notwithstanding the provisions of the previous sentence, Severance Benefits due to Executive shall commence in the second calendar year.  Notwithstanding the foregoing, if Executive is a “specified employee” as defined in Code Section 409A, such payment shall be subject to and paid according to the provisions of Section 2.4, as described below.
Executive acknowledges and agrees that the Severance Benefits provided in this Section 2.1 shall be the sole severance benefits payable to Executive in the event of any “change of control” (under any definition) of State Auto, and Executive hereby waives and relinquishes any and all rights or severance benefits under any other “change of control” provision applicable to Executive with respect to his employment by State Auto.
2.2    Eligibility for Severance Benefits.  State Auto, or its respective successor, shall pay or provide to Executive the Severance Benefits as defined above, in the event that Executive becomes eligible for such Severance Benefits because, during the Term of this Agreement:
		
	(a)
	Executive’s employment is terminated from all State Auto companies for any reason other than for Cause or the death or Disability of Executive, within 24 months after a Change of Control; or

		
	(b)
	Executive terminates employment for Good Reason within 24 months after a Change of Control; or

		
	(c)
	Executive’s employment is terminated from all State Auto companies for any reason other than for Cause or the death or Disability of Executive after an agreement has been reached with an unaffiliated third party, the performance of which agreement would result in a Change of Control involving such third party, if such Change of Control is actually consummated within 12 months after the date of such termination.

Executive’s termination of employment for all purposes under this Agreement shall be determined to have occurred in accordance with the “separation from service” requirements of Code Section 409A and applicable Treasury Regulations and guidance issued thereunder.
2.3    Liquidated Damages; Mitigation.  State Auto hereby acknowledges that it will be difficult and may be impossible for Executive to find reasonably comparable employment, or to measure the amount of damages which Executive may suffer as a result of termination of employment hereunder.  Accordingly, the payment of the Severance Benefits by State Auto to Executive in accordance with the terms of this Agreement is hereby acknowledged by State Auto to be reasonable and will be liquidated damages, and Executive will not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor will any profits, income, earnings or other benefits from any source whatsoever create any mitigation, offset, reduction or any other obligation on the part of Executive hereunder or otherwise.  State Auto shall not be entitled to set off or counterclaim against amounts payable hereunder with respect to any claim, debt or obligation of Executive.
2.4    Specified Employee Delay.  In the event Executive is a “specified employee” as defined in Code Section 409A, any payments under this Agreement due to a separation from service and subject to Code Section 409A shall be delayed until a date that is six months after the date of separation from service (or, if earlier, the date of death of Executive).  Payments to which a “specified employee” would otherwise be entitled during the first six months following the date of separation shall be accumulated and paid as of the first date of the seventh month following the date of separation from service.  Interest shall be paid on any such delayed payment at the applicable federal rate under Code Section 7872(f)(2)(A).
Article III    Executive’s Rights Under Certain Plans.
Any references to specific employee benefits arrangements in this Agreement are not intended to exclude Executive from participation in other benefits available to executive personnel generally or to preclude Executive’s right to other compensation or benefits as may be authorized by the Boards at any time; provided that such other compensation or benefits are not severance benefits payable upon a Change in Control.  The provisions of this Agreement and any payments provided for hereunder shall not reduce any amounts otherwise payable, or in any way diminish Executive’s existing rights, or rights which would accrue solely as the result of the passage of time under any compensation plan, benefit plan, incentive plan, stock option plan, employment agreement or other contract, plan or arrangement except as may be specified in such contract, plan or arrangement.  Notwithstanding anything contained herein, State Auto agrees that the severance benefits provided to Executive herein are in addition to any rights 

and privileges to which Executive may be entitled as an employee of State Auto under any retirement, insurance, hospitalization or other plan which may now or hereafter be in effect, it being understood that, except to the extent currently provided in such plans, Executive shall have the same rights and privileges to participate in such plans or benefits as any other employee of State Auto.
Article IV    Confidential Information; Forfeiture Events.
4.1    Confidential Information.  Executive agrees to receive Confidential Information of State Auto in confidence, and not to disclose to others, assist others in the application of, or use for his own gain, such information, or any part thereof, unless and until it has become public knowledge or has come into the possession of such other or others by legal and equitable means and other than as a result of disclosure by Executive.  Executive further agrees that, upon termination of his employment with State Auto, all documents, records, notebooks and similar repositories (including electronic formats) containing Confidential Information, including copies thereof, then in Executive’s possession, whether prepared by him or others, will be left with and/or returned to State Auto.  Executive further agrees that the obligation to maintain confidentiality created by this Article IV shall continue in effect for the duration of this Agreement and following the termination of Executive’s employment with State Auto for any reason.
4.2    Forfeiture Events; Clawback Rights.
		
	(a)
	The Board may, in its discretion, require Executive to repay to State Auto all or any portion of the amounts paid as Severance Benefits if:

		
	(i)
	Executive violates any non-competition, non-solicitation or confidentiality covenant applicable to the Executive and for the benefit of State Auto, including such covenants included in the Employment Agreement;

		
	(ii)
	It is later discovered that Executive engaged in conduct detrimental to State Auto during the Employment Term (as defined in the Employment Agreement) which has a material adverse effect on State Auto as determined by the Board of Directors of State Auto Mutual, in its discretion.  For purposes of this provision, no act or failure to act, on the part of Executive, shall be considered “detrimental to State Auto” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of State Auto; or

		
	(iii)
	(A)    The amount of any of the Severance Benefits was calculated based upon the achievement of certain financial results of State Auto that were subsequently the subject of a financial statement restatement by State Auto; and

(B)    The amount of Executive’s Severance Benefits would have been lower than the amount actually awarded to Executive had the financial results been properly reported.
Notwithstanding the foregoing, if the Boards determine that Executive engaged in fraudulent conduct, then the Boards will seek repayment of all Severance Benefits.  
This provision shall not be the exclusive remedy of State Auto with respect to such matters.
		
	(b)
	The terms of any compensation recovery or recoupment policy heretofore or hereafter adopted by the Boards, including any and all amendments thereto (a “clawback policy”), are hereby incorporated into this Agreement by reference.  In addition to the terms and conditions set forth in this Agreement and the Employment Agreement, Executive agrees that any amounts payable or paid to Executive under this Agreement shall be subject to the terms of any clawback policy of the Boards.

Article V    Successors; Binding Agreement.
5.1    As to State Auto.  This Agreement shall inure to the benefit of and be binding upon State Auto, its successors and assigns, including without limitation, any person, partnership or corporation which may acquire voting control of State Auto Financial or all or substantially all of its assets and business, or which may be a party to any consolidation, merger or other transaction that results in a Change of Control of State Auto Financial or State Auto Mutual.  State Auto will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of State Auto to expressly assume and agree to perform this Agreement in the same manner and to the same extent that State Auto would be required to perform it if no such succession had taken place.  Failure of State Auto to obtain such assumption and agreement prior 

to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle Executive to compensation from State Auto in the same amount and on the same terms to which Executive would be entitled hereunder if Executive terminated employment for Good Reason following a Change of Control.
5.2    As to Executive.  This Agreement shall also inure to the benefit of and be binding on Executive, his heirs, successors and legal representatives.  This Agreement shall be enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  Executive’s rights and benefits under this Agreement may not be assigned, except that if Executive dies while any amount would still be payable to Executive hereunder if Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid to the beneficiary indicated on the Beneficiary Designation attached as Exhibit A or, if there is no such beneficiary, to Executive’s estate.  Such payments, if any, shall be made in the same form and at the same time, as such payment would have been made to Executive.
Article VI    COBRA Continuation Coverage.
Notwithstanding any provision of this Agreement to the contrary, in the event of any “qualifying event,” as defined in Code Section 4980B, Executive and his qualifying beneficiaries shall be entitled to continuation of health care coverage, as provided under Code Section 4980B(f).  The foregoing is intended as a statement of Executive’s continuation coverage rights and is in no way intended to limit any greater rights of Executive or his qualified beneficiaries.
Article VII    Indemnification; Enforcement Costs; Interest.
7.1    Indemnification.  State Auto, as provided for in its Amended and Restated Articles of Incorporation and its Amended and Restated Bylaws, shall indemnify Executive to the full extent of the general laws of the State of Ohio, now or hereafter in force, including the advance of expenses under procedures provided by such laws.  From the date of a Change of Control, State Auto shall (a) for a period of five years after such Change of Control, provide Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability insurance policy at State Auto’s expense, and (b) indemnify and hold harmless Executive, to the fullest extent permitted or authorized by the law of the State of Ohio as it may from time to time be amended, if Executive is (whether before or after the Change of Control) made or threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that Executive is or was a director, officer or employee of State Auto or any Subsidiary, or is or was serving at the request of State Auto or any Subsidiary, as a director, trustee, officer or employee of an insurance company, corporation, partnership, joint venture, trust, or other enterprise.  The indemnification provided by this Section 7.1 shall not be deemed exclusive of any other rights to which Executive may be entitled under the charter or bylaws of State Auto or of any Subsidiary, or any agreement (including the Employment Agreement), vote of shareholders or disinterested directors, or otherwise, both as to action in Executive’s official capacity and as to action in another capacity while holding such office, and shall continue as to Executive after Executive has ceased to be a director, trustee, officer or employee and shall inure to the benefit of the heirs, executors and administrators of Executive.
7.2    Enforcement Cost.  State Auto is aware that, upon the occurrence of a Change of Control, the Board or a shareholder or policyholder of State Auto, as the case may be, may then cause or attempt to cause State Auto to refuse to comply with their obligations under this Agreement, or may cause or attempt to cause State Auto to institute, or may institute, litigation, arbitration or other legal action seeking to have this Agreement declared unenforceable, or may take, or attempt to take, other action to deny Executive the benefits intended under this Agreement.  In these circumstances, the purpose of this Agreement could be frustrated.  It is the intent of State Auto that Executive not be required to incur the expenses associated with the enforcement of Executive’s rights under this Agreement by litigation, arbitration or other legal action nor be bound to negotiate any settlement of Executive’s rights hereunder under threat of incurring such expenses because the cost and expense thereof would substantially detract from the benefits intended to be extended to Executive under this Agreement.  Accordingly, if following a Change of Control it should appear to Executive that State Auto has failed to comply with any of their obligations under this Agreement, or in the event that State Auto or any other person takes any action to declare this Agreement void or unenforceable, or institute any litigation or other legal action designed to deny, diminish or to recover from Executive, the benefits intended to be provided to Executive hereunder, State Auto irrevocably authorizes Executive from time to time to retain counsel (legal and accounting) of Executive’s choice at the expense of State Auto as provided in this Section 7.2 to represent Executive in connection with the calculation of the Code Section 280G reduction, or the initiation or defense of any litigation or other legal action, whether by or against State Auto or any director, officer, stockholder or other person affiliated with State Auto.  Notwithstanding any existing or prior attorney-client relationship between State Auto and such counsel, State Auto irrevocably consents to Executive entering into an attorney-client relationship with such counsel, and in that connection State Auto and Executive agree that a confidential relationship shall exist between Executive and such counsel.  The reasonable fees and expenses of counsel selected from time to time by Executive as provided in this Section 7.2 shall be paid or reimbursed to Executive by State Auto on a regular, periodic basis upon presentation by Executive of a statement or statements prepared by such counsel in accordance with their customary practices.

7.3    Interest.  In any action involving this Agreement, Executive shall be entitled to prejudgment interest on any amounts found to be due him from the date such amounts would have been payable to Executive pursuant to this Agreement at an annual rate of interest equal to the prime commercial rate in effect at the corporation’s principal bank or their successor from time to time during the prejudgment period plus four percent.
Article VIII    Cooperation with Regard to Litigation.
Executive agrees to cooperate with State Auto for a period of two years following Executive’s termination of employment by making himself reasonably available to testify on behalf of State Auto in any action, suit or proceeding, whether civil, criminal, administrative or investigative, and to assist State Auto in any such action, suit or proceeding by providing information and meeting and consulting with the Boards or their counsel or counsel to State Auto as reasonably requested by the Boards or such counsel.  Executive shall be reimbursed by State Auto for any expenses (including, but not limited to, legal fees) reasonably incurred by Executive in connection with his compliance with the foregoing covenant.
Article IX    Payment of Taxes and Timing.
9.1    Excess Severance Payment.  If any Severance Benefit or other benefit paid or provided under Section 2.1, or the acceleration of stock option vesting, would be subject to excise tax pursuant to Code Section 4999 (or any similar federal or state excise tax), but would not be so subject if the total of such payments would be reduced by 10% or less, then such payment shall be reduced by the minimum amount necessary so as not to cause State Auto to have paid an Excess Severance Payment as defined in Code Section 280G(b)(1) and so Executive will not be subject to Excise Tax pursuant to Code Section 4999.  The calculation of the Code Section 280G reduction shall be approved by State Auto’s independent certified public accounting firm engaged by State Auto immediately prior to the Change of Control and the calculation shall be provided to Executive in writing.  Executive shall then be given 15 days; or such longer period as Executive reasonably requests and to which State Auto agrees, such agreement not to be unreasonably withheld, to accept or reject the calculation of the Code Section 280G reduction.  If Executive rejects the Code Section 280G reduction calculation and the parties are thereafter unable to agree within an additional 45 days, the arbitration provisions of Section 10.1 shall control.  State Auto shall reimburse Executive for all reasonable legal and accounting fees incurred with respect to the calculation of the Code Section 280G reduction and any disputes related thereto.  Any payments owed to Executive under this Section 9.1, which are subject to the rules under Code Section 409A and related regulations, shall be made to Executive no later than the end of the calendar year following the calendar year in which the taxes are remitted to the taxing authority.  In the event that the amount of any Severance Benefit that would be payable to or for the benefit of Executive under this Agreement must be modified or reduced to comply with this provision, it shall be modified or reduced on a pro-rata basis.  In no event shall the total payments be reduced by more than 10% in order to avoid treatment as an Excess Severance Payment.
9.2    Withholding of Taxes.  State Auto may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as required by law; provided, however, that such payment may not exceed the amount of such taxes due as a result of the payments due under this Agreement.
In accordance with Code Section 409A and the regulations issued thereunder, this Agreement shall permit the payment of amounts necessary to (a) satisfy the employment tax withholding obligations that arise under this Agreement prior to the date that payment may otherwise be made under this Agreement and/or (b) satisfy the excise tax or underpayment penalties owed under Code Section 409A in the event of a violation of Code Section 409A under this Agreement.
9.3    Delayed Payments.  In the event of a genuine dispute between State Auto or any Subsidiary and Executive regarding the amount or timing of benefits under this Agreement, a delay in the payment of amounts under this Agreement shall not cause Executive to violate Code Section 409A to the extent that such delay satisfies the conditions set forth in Code Section 409A and applicable regulations thereunder.
9.4    Savings Clause.  If any payments otherwise payable to Executive under this Agreement are prohibited or limited by any statute or regulation in effect at the time the payments would otherwise be payable (any such limiting statute or regulation a “Limiting Rule”):
		
	(a)
	State Auto will use its best efforts to obtain the consent of the appropriate governmental agency to the payment by State Auto to Executive of the maximum amount that is permitted (up to the amounts that would be due to Executive absent the Limiting Rule); and

		
	(b)
	Executive will be entitled to elect to have apply, and therefore to receive benefits directly under, either (i) this Agreement (as limited by the Limiting Rule) or (ii) any generally applicable State Auto severance, separation pay and/or salary continuation plan that may be in effect at the time of Executive’s termination.

Following any such election, Executive will be entitled to receive benefits under this Agreement or plan elected only if and to the extent the Agreement or plan is applicable and subject to its specific terms.
Article X    Arbitration.
10.1    Arbitration.  The method for resolving any dispute arising out of this Agreement shall be binding arbitration in accordance with this Section 10.1.  Except as provided otherwise in this Section 10.1, arbitration pursuant to this Section 10.1 shall be governed by the Commercial Arbitration Rules of the American Arbitration Association.  A party wishing to obtain arbitration of an issue shall deliver written notice to the other party, including a description of the issue to be arbitrated.  Within 15 days after either party demands arbitration, State Auto and Executive shall each appoint an arbitrator.  The fees and expenses of these arbitrators shall be paid by State Auto.  Within 15 additional days, these two arbitrators shall appoint the third arbitrator by mutual agreement; if they fail to agree within this 15 day period, then the third arbitrator shall be selected promptly pursuant to the rules of the American Arbitration Association for Commercial Arbitration.  The arbitration panel shall hold a hearing in Columbus, Ohio, within 90 days after the appointment of the third arbitrator.  The fees and expenses of the third arbitrator, and any American Arbitration Association fees, shall be paid by State Auto.  Both State Auto and Executive may be represented by counsel (legal and accounting) and may present testimony and other evidence at the hearing.  Each party shall be responsible for the legal fees and other expenses incurred by each party.  Within 90 days after commencement of the hearing, the arbitration panel will issue a written decision; the majority vote of two of the three arbitrators shall control.  The majority decision of the arbitrators shall be binding on the parties.  Executive shall be entitled to seek specific performance of Executive’s rights under this Agreement during the period of time that any dispute or controversy arising under or in connection with this Agreement is pending.
Article XI    General Provisions.
11.1    Entire Agreement.  This Agreement contains the entire agreement of the parties hereto with respect to the impact of a Change of Control on Executive, and completely supersedes any prior verbal or written agreements or arrangements between the parties hereto, if any, related to a Change of Control.  The parties hereto agree that this Agreement cannot be hereafter amended, modified or supplemented in any respect, except by a subsequent written agreement signed by both parties hereto.  The parties also agree that this Agreement shall be amended and/or modified as necessary to comply with Code Section 409A or regulations issued thereunder as well as requirements or regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as applicable.
11.2    Applicable Law.  This Agreement shall be governed in all respects by the laws of the State of Ohio, without giving effect to any of its conflict of law provisions.
11.3    Notices.  All notices under this Agreement shall be in writing and will be duly given if sent by United States registered or certified mail, return receipt requested, to the respective parties to the addresses set forth below or such other addresses as the parties may hereafter designate in writing for such purpose:
		
	(a)
	If to either State Auto Financial, State Auto P&C or State Auto Mutual, to 518 East Broad Street, Columbus, Ohio 43215, Attention: Corporate Secretary; and

		
	(b)
	If to Executive, to the last address on file with State Auto.

If the parties by mutual agreement supply each other with telecopier numbers for the purposes of providing notice by facsimile, such notice shall also be proper notice under this Agreement.  Notice sent by certified or registered mail shall be effective two days after deposit by delivery to the U.S. Post Office.
11.4    Assignment.  Except as expressly provided herein, neither this Agreement nor any rights, benefits or obligations hereunder may be assigned by Executive without the prior written consent of State Auto Mutual and State Auto Financial.
11.5    Capacity.
		
	(a)
	State Auto Financial, State Auto P&C and State Auto Mutual represent and warrant to Executive that they have the capacity and right to enter into this Agreement and perform all of their obligations under this Agreement without any restriction by any agreement, document, restrictive covenant or otherwise.

		
	(b)
	Executive represents and warrants to State Auto Financial, State Auto P&C and State Auto Mutual that he has the capacity and right to enter into this Agreement and perform all of his services and other obligations under this Agreement without 

any restriction by any agreement, document, restrictive covenant or otherwise, except as provided in Section (E)(2) of Article XI of the Employment Agreement.
11.6    Waiver.  The failure by a party to exercise or enforce any of the terms or conditions of this Agreement will not constitute or be deemed a waiver of that party’s rights hereunder to enforce each and every term of this Agreement.  The failure by a party to insist upon strict performance of any of the terms and provisions herein will not be deemed a waiver of any subsequent default in the terms or provisions herein.
11.7    Rights and Remedies Cumulative.  All rights and remedies of the parties hereunder are cumulative.
11.8    Divisibility.  The provisions of this Agreement are divisible.  If any such provision shall be deemed invalid or unenforceable, it shall not affect the applicability or validity of any other provision of this Agreement, and if any such provision shall be deemed invalid or unenforceable as to any periods of time, territory or business activities, such provision shall be deemed limited to the extent necessary to render it valid and enforceable.
11.9    Captions and Titles.  Captions and titles have been used in this Agreement only for convenience and in no way define, limit or describe the meaning of any Article or any part thereof.
11.10    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
11.11    Code Section 409A Compliance.  It is the intention of both Executive and State Auto that the benefits and rights to which Executive could be entitled to under this Agreement be exempt from or, to the extent that the requirements of Code Section 409A apply, comply with Code Section 409A and the Treasury Regulations thereunder, and the provisions of this Agreement shall be construed in a manner consistent with that intention.  If Executive or State Auto believes, at any time, that any such benefit or right that is subject to Code Section 409A does not so comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and rights so that they comply with Code Section 409A (with the most limited possible economic effect on Executive and State Auto).
SIGNATURES APPEAR ON NEXT PAGE

IN WITNESS WHEREOF, the parties have signed this Agreement which is effective as of the Effective Date.
	
			
	 
	 
	State Auto Financial Corporation

	 
	 
	 

	 
	By
	/s/ Robert E. Baker

	 
	 
	Robert E. Baker, Chair of the State Auto Financial Corporation Compensation Committee

	 
	 
	 

	 
	 
	State Auto Property and Casualty Insurance Company

	 
	 
	 

	 
	By
	/s/ Robert E. Baker

	 
	 
	Robert E. Baker, Chair of the State Auto Financial Corporation Compensation Committee

	 
	 
	 

	 
	 
	State Automobile Mutual Insurance Company

	 
	 
	 

	 
	By
	/s/ Dwight E. Smith

	 
	 
	Dwight E. Smith, Chair of the State Automobile Mutual Insurance Company Compensation Committee

	 
	 
	 

	 
	 
	Executive

	 
	 
	 

	 
	By
	/s/ Michael E. LaRocco

	 
	 
	Michael E. LaRocco

Exhibit A
Beneficiary Designation and Notice Form
Beneficiary Designation
In the event of my death, I direct that any amounts due me under this Agreement to which this Beneficiary Designation is attached shall be distributed to the person designated below. If no beneficiary shall be living to receive such assets they shall be paid to the administrator or executor of my estate.
	
				
	Beneficiary:
	Ann LaRocco
	 
	 

	 
	 
	 
	 

	Relationship to Executive:
	Spouse
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Date:
	3/27/2015
	 
	EXECUTIVE

	 
	 
	 
	 

	 
	 
	 
	/s/ Michael E. LaRocco

	 
	 
	 
	Michael E. LaRoccoFIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT

 Exhibit 10.1 

FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT 

AND JOINT ESCROW INSTRUCTIONS 

This First Amendment to Purchase and Sale Agreement and Joint Escrow Instructions (this “Amendment”) is made and entered into
as of the 1st day of May, 2015 (the “Effective Date”) by and among: 

The following sellers (each, a “Seller” and jointly and severally, the “Sellers”), on the one hand: 

CNL Lifestyle Properties, Inc., a Maryland corporation, 

CLP Springfield MO Owner, LLC, a Delaware limited liability company, 

CLP Chesterfield MO Owner, LLC, a Delaware limited liability company, 

CLP Branson MO Owner, LLC, a Delaware limited liability company, 

CLP Nevada MO Owner, LLC, a Delaware limited liability company, 

CLP Springdale AR Owner, LLC, a Delaware limited liability company, 

CLP Jonesboro AR Owner, LLC, a Delaware limited liability company, 

CLP Fayetteville AR Owner, LLC, a Delaware limited liability company, 

CLP TCV Owner, LLC, a Delaware limited liability company, 

CLP Washington IL Owner, LLC, a Delaware limited liability company, 

CLP Pekin IL Owner, LLC, a Delaware limited liability company, 

CLP Sterling IL Owner, LLC, a Delaware limited liability company, 

CLP Carmel IN Continuing Care Owner, LLC, a Delaware limited liability company, 

CLP Denver CO Continuing Care Owner, LLC, a Delaware limited liability company, 

CLP Alpharetta GA Owner, LLC, a Delaware limited liability company, 

CLP Stockbridge GA Owner, LLC, a Delaware limited liability company, 

CLP Fayetteville GA Owner, LLC, a Delaware limited liability company, 

CLP Gainesville GA Owner, LLC, a Delaware limited liability company, 

CLP Moline IL Assisted Living Owner, LLC, a Delaware limited liability company, 

CLP Moline IL Memory Care Owner, LLC, a Delaware limited liability company, 

 CLP Carson City NV Owner, LLC, a Delaware limited liability company, 

CLP Godfrey IL Owner, LLC, a Delaware limited liability company, 

CLP Laurel Creek GA Owner, LLC, a Delaware limited liability company, 

CLP Pioneer Village Senior Living, LLC, a Delaware limited liability company, 

CLP Bozeman MT Senior Living, LLC, a Delaware limited liability company, 

CLP Chateau Vestavia AL Senior Living, LLC, a Delaware limited liability company, 

CLP Santa Clarita CA Senior Living, LLC, a Delaware limited liability company, 

CLP Peoria AZ Senior Living, LLC, a Delaware limited liability company, 

CLP Sun City Center FL Senior Living, LLC, a Delaware limited liability company, 

CLP Portland OR Senior Living, LLC, a Delaware limited liability company, 

CLP Cranston RI Senior Living, LLC, a Delaware limited liability company, 

CLP Bakersfield CA Senior Living, LLC, a Delaware limited liability company, 

CLP Wilmington NC Senior Living, LLC, a Delaware limited liability company, 

CLP Modesto CA Senior Living, LLC, a Delaware limited liability company, 

CLP Northridge CA Senior Living, LLC, a Delaware limited liability company, 

CLP La Conner WA Senior Living, LLC, a Delaware limited liability company, 

CLP Everett WA Senior Living, LLC, a Delaware limited liability company, 

CLP Cumming GA Senior Living Owner, LLC, a Delaware limited liability company, 

CLP Hoschton GA Senior Living Owner, LLC, a Delaware limited liability company, 

CLP SHC Tenant TRS Corp., a Delaware corporation, 

CLP Grand Victorian Tenant TRS Corp., a Delaware corporation, 

CLP Fayetteville AR Tenant Corp., a Delaware corporation, 

TCV Senior Living, LLC, a Delaware limited liability company, 

CLP Georgia SL Tenant TRS Corp., a Delaware corporation, 

CLP Moline IL Tenant TRS Corp., a Delaware corporation, 

 CLP Carson City NV Tenant TRS Corp., a Delaware corporation, 

CLP Godfrey Tenant TRS Corp., a Delaware corporation, and 

CLP Laurel Creek GA Tenant Corp., a Delaware corporation, and 

Senior Housing Properties Trust, a Maryland real estate investment trust, together with assignees or designees thereof, on the other hand, as
buyer (the “Buyer”). 
 RECITALS 

A. Seller and Purchaser entered into a certain Purchase and Sale Agreement and Joint Escrow Instructions dated December 22, 2014 (the
“Purchase Agreement”). 
 B. The Purchase Agreement contemplated that sale of each of the Properties would occur
simultaneously. 
 C. The Tenant of the Property located in Wilmington, North Carolina (the “Wilmington Property”)
delivered the notice attached hereto as Exhibit 1 (the “Notice of Suspension”) to the Parties after execution of the Purchase Agreement. 

D. As a result of the Notice of Suspension, the Parties have determined that it is desirable to consummate the transactions contemplated by
the Purchase Agreement by way of two Closings such that (A) the Acquisition with respect to each of the Properties other than the Wilmington Property and the Associated Property relating to each Property other than the Wilmington Property (the
“First Closing Properties”) will take place on May 1, 2015 (the “First Closing”), and (B) the Acquisition with respect to the Wilmington Property and the Associated Property relating thereto
(the “Second Closing”) shall take place in accordance with and subject to the terms and conditions of the Purchase Agreement, as amended by this Amendment (as so amended, the “Amended Agreement”). 

E. Seller and Purchaser desire to amend the Purchase Agreement in the manner set forth herein. 

NOW, THEREFORE, in consideration of the provisions contained in the Amended Agreement, and intending to be legally bound hereby, the
Parties agree as follows: 
 1. Definitions. Capitalized terms that are used herein but not otherwise defined in this
Amendment shall have the meanings ascribed to such terms in the Purchase Agreement. 
 2. Representations. The representations
set forth in the Purchase Agreement are qualified by the matters set forth in the Notice of Suspension. The Parties agree that the Notice of Suspension and the conditions described therein do not constitute a breach of any representation by any
Seller, nor do they constitute a Seller Default; provided, however, that Sellers represent that, as of the date hereof, no Seller has received a notice of default under any of the Loan Documents with respect to the Notice of Suspension
or the conditions described therein. 

 3. Bifurcation of Closing. The Parties agree that the First Closing shall take
place on May 1, 2015 (the “First Closing Date”) and that, subject to the terms and conditions of the Amended Agreement, the Second Closing shall take place on the day that is three (3) Business Days after the date
on which all of the Buyer Conditions Precedent (including, without limitation, the additional condition precedent set forth in Section 7 of this Amendment) are satisfied (the “Second Closing Date”); provided,
however, that if on the Second Closing Date, the Lender with respect to the Wilmington Property shall not have consented to (i) the transfer of the Wilmington Property to Buyer, (ii) the assumption of the Loans and Loan Documents
relating to the Wilmington Property by Buyer on terms and conditions satisfactory to Buyer in its reasonable discretion, or (iii) any other applicable transactions contemplated by this Agreement, or such Lender shall not have executed and
delivered all applicable documentation evidencing such consents, which documentation shall be satisfactory to Buyer in its reasonable discretion, then Buyer shall have the right to extend the Second Closing Date two (2) times, with the first
such extension being until the day that is thirty (30) days after the previously scheduled Second Closing Date and the second such extension being until the day that is thirty (30) days after the previously scheduled Second Closing Date;
and further provided that if, on the then scheduled Second Closing Date (as extended twice by the foregoing clauses), the consents of the applicable Lender (and documentation evidencing the same) referenced to above has not been
obtained, then the Second Closing Date shall be further extended for an additional thirty (30) days. 
 4. Prorations.
The Proration Date for the Second Closing shall be the day before the Second Closing Date. 
 5. Deposit. At the First
Closing, Three Million and No/100 Dollars ($3,000,000.00) of the Deposit (together with any interest accruing thereon from and after the First Closing Date, the “Second Closing Deposit”) shall be retained by Escrow Agent and
shall be treated from and after the First Closing Date as the Deposit under the Purchase Agreement. All other portions of the Deposit shall be applied against amounts due from Buyer at the First Closing. At the Second Closing, the Second Closing
Deposit shall be applied against the Wilmington Purchase Price. 
 6. Purchase Price. The Purchase Price for the First Closing
Properties shall be equal to the difference between the Purchase Price and the Allocated Purchase Price for the Wilmington Property as set forth on Exhibit D to the Purchase Agreement. The Purchase Price for the Wilmington Property and the
Associated Property relating thereto shall be the Allocated Purchase Price for the Wilmington Property as set forth on Exhibit D to the Purchase Agreement (the “Wilmington Purchase Price”). 

7. Conditions to Closing. In addition to the other Buyer Conditions Precedent set forth in the Purchase Agreement, it shall be a
condition precedent to Buyer’s obligation to consummate the Second Closing that the order suspending admissions set forth in the Notice of Suspension be lifted and no longer be of any force or effect. Notwithstanding anything contained herein
or in the Purchase Agreement to the contrary, from and after the First Closing, the Buyer Conditions Precedent set forth in Sections 14.1(c) and 14.1(d) of the Purchase Agreement shall be limited such that they only relate to those representations,
warranties, covenants and obligations relating to the Wilmington Property and the Associated Property 

 
relating thereto. In the event that the Buyer Conditions Precedent, as modified by this Paragraph 7 is not satisfied on or before November 1, 2015, Buyer shall be entitled to terminate the
Amended Agreement with respect to the Wilmington Property and the Associated Property relating thereto. Upon such termination by Buyer, Buyer shall receive a refund of the Second Closing Deposit and the parties shall be relieved of all obligations
under the Amended Agreement relating to the Wilmington Property and the Associated Property relating thereto. 
 8. Out of Pocket
Expenses. To the extent that Buyer terminates the Amended Agreement with respect to the Wilmington Property pursuant to Section 16.1(a)(2) of the Purchase Agreement, Sellers’ obligation to reimburse Buyer pursuant thereto shall not
exceed the amount of Eighty-Five Thousand and No/100 Dollars ($85,000.00). 
 9. No Rescission Rights. The Parties agree that
neither Party shall have any right of rescission with respect to the First Closing Properties from and after the First Closing and that the First Closing shall in no way relieve the Parties of their obligations with respect to the Second Closing,
notwithstanding anything to the contrary provided in the Purchase Agreement, including, without limitation, in Section 17.22 thereof. 

10. Interpretation of Purchase Agreement from and after First Closing. The Parties agree that for the period after the First
Closing and prior to the Second Closing, the Purchase Agreement shall, for purposes of all obligations contemplated to be performed prior to “Closing” under the Purchase Agreement, be interpreted as if the Purchase Agreement relates only
to the Wilmington Property and the Associated Property relating thereto. From and after the Second Closing, the Purchase Agreement shall be interpreted in such a manner as is consistent with a bifurcated closing, with the applicable closing date
being applied with respect to the applicable Property. Notwithstanding the fact that a Tenant Lease Estoppel for the Tenant Lease covering the Wilmington Property has been delivered in connection with the First Closing, if the Second Closing does
not occur on or before June 1, 2015, Sellers shall deliver a new Tenant Lease Estoppel or a representation letter from the Company in accordance with Section 5.2(b) of the Purchase Agreement with respect to the Tenant Lease covering the
Wilmington Property, which shall be dated no more than thirty (30) days prior to the Second Closing Date. 
 11. Full Force and
Effect and Conflicts. Except as modified by this Amendment, all of the terms of the Purchase Agreement shall remain in full force and effect, provided, however, that in the event of any conflict between the terms of this Amendment and the
terms of the Purchase Agreement, the terms of this Amendment shall control. 
 12. Execution of Amendment. A Party may deliver
executed signature pages to this Amendment by facsimile or email transmission to the other Party, which facsimile or email copy shall be deemed to be an original executed signature page. This Amendment may be executed in any number of counterparts,
each of which shall be deemed an original and all of which counterparts together shall constitute one agreement with the same effect as if the parties hereto had signed the same signature page. 

 13. Binding Effect. Each and every term and provision of this Amendment shall be
binding upon and shall inure to the benefit of the parties and their respective heirs, successors, personal representatives and assigns. 

[Remainder of page intentionally left blank; 

Signatures continue on following page] 

 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the
Effective Date. 
  

			
	BUYER:
	
	 SENIOR HOUSING PROPERTIES TRUST,

a Maryland real estate investment trust

		
	By:		 s/o David J. Hegarty

	Name:		David J. Hegarty
	Title:		President

			
	SELLERS:
	
	 CNL LIFESTYLE PROPERTIES, INC.,

a Maryland corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP SPRINGFIELD MO OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CHESTERFIELD MO OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP BRANSON MO OWNER, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP NEVADA MO OWNER, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP SPRINGDALE AR OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP JONESBORO AR OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP FAYETTEVILLE AR OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP TCV OWNER, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP WASHINGTON IL OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP PEKIN IL OWNER, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP STERLING IL OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CARMEL IN CONTINUING CARE OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP DENVER CO CONTINUING CARE OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP ALPHARETTA GA OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP STOCKBRIDGE GA OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP FAYETTEVILLE GA OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP GAINESVILLE GA OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP MOLINE IL ASSISTED LIVING OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP MOLINE IL MEMORY CARE OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CARSON CITY NV OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP GODFREY IL OWNER, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP LAUREL CREEK GA OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP PIONEER VILLAGE SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP BOZEMAN MT SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CHATEAU VESTAVIA AL SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP SANTA CLARITA CA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP PEORIA AZ SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP SUN CITY CENTER FL SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP PORTLAND OR SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CRANSTON RI SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP BAKERSFIELD CA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP WILMINGTON NC SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP MODESTO CA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP NORTHRIDGE CA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP LA CONNER WA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP EVERETT WA SENIOR LIVING, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CUMMING GA SENIOR LIVING OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP HOSCHTON GA SENIOR LIVING OWNER, LLC,

a Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP SHC TENANT TRS CORP.,
 a
Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP GRAND VICTORIAN TENANT TRS CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP FAYETTEVILLE AR TENANT CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 TCV SENIOR LIVING, LLC,
 a
Delaware limited liability company

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP GEORGIA SL TENANT TRS CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP MOLINE IL TENANT TRS CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP CARSON CITY NV TENANT TRS CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

			
	 CLP GODFREY TENANT TRS CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President
	
	 CLP LAUREL CREEK GA TENANT CORP.,

a Delaware corporation

		
	By:		 s/o Tracey B. Bracco

	Name:		Tracey B. Bracco
	Title:		Vice President

 EXHIBIT 1 

[See attached copy.] 
 [Omitted as
not necessary]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]