Document:

Limited Liability Company Agreement

 Exhibit 10.2 
  

 
  
  

 
  

LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 CHP MONTECITO PARTNERS I, LLC 

THE INTERESTS OF THE MEMBERS ISSUED UNDER THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES
LAWS OF ANY STATE OR THE DISTRICT OF COLUMBIA. NO RESALE OR TRANSFER OF AN INTEREST BY A MEMBER IS PERMITTED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT AND ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND ANY VIOLATION OF SUCH
PROVISIONS COULD EXPOSE THE SELLING OR TRANSFERRING MEMBER AND THE COMPANY TO LIABILITY. 
  
  

Dated as of January 16, 2013 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	  
	   1.1
	    	  Definitions
	  	 	1	  
	   1.2
	    	  General Interpretive Principles.
	  	 	14	  
		
	 ARTICLE 2 THE COMPANY AND ITS BUSINESS
	  	 	15	  
	   2.1
	    	  Company Name
	  	 	15	  
	   2.2
	    	  Term
	  	 	15	  
	   2.3
	    	  Filing of Certificate and Amendments
	  	 	15	  
	   2.4
	    	  Business; Scope of Members’ Authority.
	  	 	15	  
	   2.5
	    	  Principal Office; Registered Agent
	  	 	15	  
	   2.6
	    	  Authorized Persons
	  	 	16	  
	   2.7
	    	  Representations by Members
	  	 	16	  
	   2.8
	    	  Organization Expenses
	  	 	16	  
	   2.9
	    	  Securities Laws Restrictions
	  	 	16	  
		
	 ARTICLE 3 MANAGEMENT OF COMPANY BUSINESS
	  	 	17	  
	   3.1
	    	  Appointment of Managing Member
	  	 	17	  
	   3.2
	    	  Duties of Managing Member.
	  	 	17	  
	   3.3
	    	  Bank Accounts
	  	 	18	  
	   3.4
	    	  Reimbursement for Costs and Expenses
	  	 	18	  
	   3.5
	    	  Major Decisions
	  	 	18	  
		
	 ARTICLE 4 RIGHTS AND DUTIES OF MEMBERS
	  	 	19	  
	   4.4
	    	  Members Shall Not Have Power to Bind Company
	  	 	19	  
	   4.5
	    	  Other Activities of the Members.
	  	 	19	  
	   4.6
	    	  Indemnification.
	  	 	19	  
	   4.7
	    	  Dealing with Members
	  	 	20	  
	   4.8
	    	  Use of Company Assets
	  	 	21	  
	   4.9
	    	  Designation of Tax Matters Member
	  	 	21	  
	   4.10
	    	  OFAC; Not Foreign Person; Not Prohibited Person
	  	 	21	  
		
	 ARTICLE 5 BOOKS AND RECORDS; REPORTS
	  	 	22	  
	   5.1
	    	  Books and Records
	  	 	22	  
	   5.2
	    	  Availability of Books and Records; Return of Books and Records
	  	 	22	  
	   5.3
	    	  Reports and Statements
	  	 	22	  
	   5.4
	    	  Accounting Expenses
	  	 	23	  
	   5.5
	    	  Budgets
	  	 	23	  
		
	 ARTICLE 6 CAPITAL CONTRIBUTIONS, LOANS AND LIABILITIES
	  	 	23	  
	   6.1
	    	  Initial Capital Contributions of the Members
	  	 	23	  
	   6.2
	    	  Capital Calls
	  	 	24	  
	   6.3
	    	  Reimbursements.
	  	 	24	  
	   6.4
	    	  Remedies for Failure to Fund Capital Contributions.
	  	 	25	  

  
 i 

							
	   6.5
	    	   Capital of the Company
	  	 	26	  
	   6.6
	    	   Limited Liability of Members
	  	 	26	  
	   6.7
	    	   Financing.
	  	 	26	  
		
	 ARTICLE 7 CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS
	  	 	27	  
	   7.1
	    	   Capital Accounts.
	  	 	27	  
	   7.2
	    	   General Allocation Rules
	  	 	28	  
	   7.3
	    	   Special Allocations
	  	 	29	  
	   7.4
	    	   Income Tax Elections
	  	 	32	  
	   7.5
	    	   Income Tax Allocations.
	  	 	32	  
	   7.6
	    	   Transfers During Fiscal Year
	  	 	33	  
	   7.7
	    	   Election to be Taxed as Association
	  	 	33	  
	   7.8
	    	   Assignees Treated as Members
	  	 	33	  
		
	 ARTICLE 8 DISTRIBUTIONS OF NET OPERATING CASH FLOW AND CAPITAL PROCEEDS
	  	 	33	  
	   8.1
	    	   Distributions of Net Operating Cash Flow
	  	 	33	  
	   8.2
	    	   Distribution of Capital Proceeds
	  	 	34	  
	   8.3
	    	   Distribution Calculations
	  	 	34	  
	   8.4
	    	   Repayment of Member Loans, Reconciliation Amounts and Other Payments.
	  	 	34	  
	   8.5
	    	   Liquidation
	  	 	35	  
		
	 ARTICLE 9
	  	 	35	  
		
	 DISPOSITION OF INTERESTS
	  	 	35	  
	   9.1
	    	   Limitations on Assignments of Interests by Members
	  	 	35	  
	   9.2
	    	   Assignment Binding on Company
	  	 	35	  
	   9.3
	    	   Substituted Members.
	  	 	36	  
	   9.4
	    	   Acceptance of Prior Acts
	  	 	36	  
	   9.5
	    	   Permitted Transfers.
	  	 	36	  
		
	 ARTICLE 10 DISSOLUTION OF THE COMPANY; WINDING UP AND DISTRIBUTION OF
  ASSETS
	  	 	39	  
	   10.1
	    	   Dissolution.
	  	 	39	  
	   10.2
	    	   Winding Up.
	  	 	40	  
	   10.3
	    	   Distribution of Assets
	  	 	40	  
		
	 ARTICLE 11 AMENDMENTS
	  	 	40	  
	   11.1
	    	   Amendments
	  	 	40	  
	   11.2
	    	   Additional Members
	  	 	40	  
	   11.3
	    	   Documentation
	  	 	41	  
		
	 ARTICLE 12 BUY-SELL; RIGHT OF FIRST OFFER
	  	 	41	  
	   12.1
	    	   Buy Sell.
	  	 	41	  
	   12.2
	    	   Right of First Offer.
	  	 	42	  
	   12.3
	    	   Closing.
	  	 	43	  
	   12.4
	    	   Release from Guaranties
	  	 	45	  

  
 ii 

							
	   12.5
	    	 Enforcement
	  	 	45	  
	   12.6
	    	 Financing
	  	 	45	  
		
	 ARTICLE 13 MISCELLANEOUS
	  	 	45	  
	   13.1
	    	 Further Assurances
	  	 	45	  
	   13.2
	    	 Notices.
	  	 	45	  
	   13.3
	    	 Headings and Captions
	  	 	47	  
	   13.4
	    	 Variance of Pronouns
	  	 	47	  
	   13.5
	    	 Counterparts
	  	 	47	  
	   13.6
	    	 Governing Law; Litigation, Jurisdiction and Waiver of Jury Trial.
	  	 	48	  
	   13.7
	    	 Arbitration.
	  	 	48	  
	   13.8
	    	 Partition
	  	 	50	  
	   13.9
	    	 Compliance with ERISA and State Statutes on Governmental Plans.
	  	 	50	  
	   13.10
	    	 Invalidity
	  	 	51	  
	   13.11
	    	 Successors and Assigns
	  	 	51	  
	   13.12
	    	 Entire Agreement
	  	 	51	  
	   13.13
	    	 Waivers
	  	 	51	  
	   13.14
	    	 No Brokers
	  	 	51	  
	   13.15
	    	 Confidentiality
	  	 	52	  
	   13.16
	    	 No Third Party Beneficiaries
	  	 	52	  
	   13.17
	    	 Power of Attorney
	  	 	52	  
	   13.18
	    	 Invalidity
	  	 	52	  
	   13.19
	    	 Construction of Documents
	  	 	53	  

  
  

			
	 Schedule 1.1
	    	 Description of the Facility

	 Schedule 3.5
	    	 Major Decisions

	 Schedule 6.1
	    	 Initial Capital Contributions; Percentage Interests of the Members

	 Exhibit A
	    	 Annual Budget

	 Exhibit B
	    	 Indemnification and Contribution Agreement

  
 iii

 THIS LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”)
of CHP MONTECITO PARTNERS I, LLC, a Delaware limited liability company (the “Company”), is entered into effective as of January 16, 2013 (the “Effective Date”), by and among CHP CLAREMONT HOLDING, LLC, a
Delaware limited liability company (“CHP”), and MMAC BERKSHIRE CLAREMONT L.L.C., a Delaware limited liability company (“Montecito”). 
 RECITALS 
 WHEREAS, pursuant to, and as set forth in, the
Framework Agreement (as hereinafter defined), Claremont Venture I, L.P., a California limited partnership (“Claremont Seller”), has entered into that certain Sale Agreement dated November 9, 2012 (the “PSA”)
with MMIC Acquisition Corporation, a Florida corporation (“Claremont Buyer”), with respect to that certain Facility listed on Schedule 1.1 of this Agreement, and Claremont Buyer will assign to the Company at the closing of
the Facility its rights under the PSA pursuant to an Assignment and Assumption of Real Estate Contract (the “Assignment and Assumption”), with the Company closing on the Facility; and 

WHEREAS, the parties desire to enter into this Agreement to (i) set forth and agree upon their respective rights,
duties and responsibilities with respect to the management and affairs of the Company, and (ii) to memorialize certain other agreements between them with respect to the Company and their interests therein. 

NOW, THEREFORE, in order to carry out their intent as expressed above and in consideration of the mutual agreements
hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby amend and restate the Original Agreement in its entirety as follows: 

ARTICLE 1 

DEFINITIONS 
 1.1          Definitions.    As used in this Agreement, the following terms shall have the meanings set forth below, which
meanings shall be applicable equally to the singular and plural of the terms defined: 
 “AAA”
shall have the meaning set forth in Section 13.7(a). 
 “Acceptance Notice” shall have
the meaning set forth in Section 12.2(a). 
 “Act” shall mean the Delaware Limited
Liability Company Act (6 Del. C. §18-101 et seq.), as amended from time to time. 

“Adjusted Basis” shall mean the basis for determining gain or loss for federal income tax purposes from
the sale or other disposition of property, as defined in Section 1011 of the Code. 

  
 1 

 “Adjusted Capital Account Deficit” shall mean, with
respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: 

(a)        Credit to such Capital Account any amounts which such Member is
obligated to restore or is deemed to be obligated to restore pursuant to Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 
 (b)        Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4) (reasonably expected adjustments for depletion allowances),
1.704-1(b)(2)(ii)(d)(5) (certain other reasonably expected allocations of loss or deduction), and 1.704-1(b)(2)(ii)(d)(6) (reasonably expected distributions) of the Regulations. 

The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of
Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently therewith. 

“Affiliate” means a Person, which controls, is controlled by, or is under common control with another
Person. For the purposes of this definition, “control” means the power to direct the management and policies of a Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract
or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. A Person shall not be deemed to be under common “control” with another Person solely based on the fact that one
or more Person(s) serve as a director of both Persons. 
 “Affiliate Guaranties” or
“Affiliate Guaranty” means a customary indemnity or carve-out guaranty, (or guaranties) or similar limited recourse undertakings (that may spring into full recourse in certain limited carve-out events) made by CHP Guarantor and/or
Montecito Guarantor for the benefit of a Lender relating to the Financing (including, without limitation, with respect to the Facility (a) a recourse liabilities guaranty made by CHP Guarantor and Montecito Guarantor for the benefit of the
Lender, dated as of the date hereof; and (b) an environmental and/or ERISA indemnity agreement, as applicable, made by CHP Guarantor, Montecito Guarantor and the Facility Entity for the benefit of Lender, dated as of the date hereof) or under
any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement. 

“Agreement” shall mean this Limited Liability Company Agreement of the Company, as it may hereafter be
amended or modified from time to time. 
 “Annual Budget” shall have the meaning set forth in
the Management Agreement/ or means the budget with respect to the Facility approved by the Members as of the Effective Date and each year thereafter in accordance with Section 5.5. 

“Appointed Arbitrator” shall have the meaning set forth in Section 13.7(b). 

“Arbitration Notice” shall have the meaning set forth in Section 13.7(b). 

“Arbitration Proceeding” shall have the meaning set forth in Section 13.7(a). 

  
 2 

 “Assignee” shall mean a Person to whom an Interest has
been transferred in accordance with this Agreement and who has not been admitted as a Member. 

“Assignment and Assumption” shall have the meaning set forth in the Recitals of this Agreement.

 “Bankruptcy” shall mean, with respect to the affected party, (a) the entry of an order
for relief under the Bankruptcy Code, (b) the admission by such party of its inability to pay its debts as they mature, (c) the making by it of an assignment for the benefit of creditors, (d) the filing by it of a petition in
bankruptcy or a petition for relief under the Bankruptcy Code or any other applicable federal or state bankruptcy or insolvency statute or any similar law, (e) the application by such party for the appointment of a receiver for the assets of
such party, (f) the filing of an involuntary Bankruptcy petition against it that is not dismissed for 60 or more days, or (g) the imposition of a judicial or statutory lien on all or a substantial part of its assets. With respect to a
Member, this definition of Bankruptcy supersedes the definition of Bankruptcy set forth in Sections 18-101(1) and 18-304 of the Act. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code, as amended from time to time. 
 “Benefit Plan Investor” shall mean, as described in 29 C.F.R. Section 2510.3-101(f)(2), any employee benefit plan (as described in ERISA 3(3)), whether or not subject to Title 1 of
ERISA, any plan descried in Code Section 4975(e), and any entity whose underlying assets include plan assets by reason of a plan’s investment in that entity. 

“Business Day” shall mean any day other than (a) a Saturday or Sunday and (b) a day on which
federally insured depositary institutions in the State of New York are authorized or obligated by law, governmental decree or executive order to be closed. 
 “Buy-Sell Closing Date” shall have the meaning set forth in Section 12.3(a). 
 “Buy-Sell Notice” shall have the meaning set forth in Section 12.1(a). 
 “Buy-Sell Price” shall have the meaning set forth in Section 12.1(a). 
 “CapEx” shall have the meaning set forth in the Management Agreement. 
 “Capital Account” when used in respect of any Member shall mean the Capital Account maintained for such Member in accordance with Section 7.1, as said Capital Account may be
increased or decreased from time to time pursuant to the terms of Section 7.1. 
 “Capital
Call” shall mean any written notice given to the Members pursuant to Article 6, in accordance with the requirements of Section 13.2, requesting a Capital Contribution that is required to be made by the Members pursuant to said Article
6. 
 “Capital Contribution” when used with respect to any Member, shall mean (i) the
initial Capital Contribution of such Member as set forth on Schedule 6.1 attached hereto, and (ii) any additional capital contributed to the Company by such Member (and, for clarification, shall not include any consideration paid by
a Member to another Member for its Interest). 

  
 3 

 “Capital Proceeds” shall mean funds of the Company arising
from a Capital Transaction, net of the actual costs incurred by the Company with third parties in consummating the Capital Transaction. 
 “Capital Transaction” shall mean any of the following: (a) a sale, exchange, transfer, assignment or other disposition of all or a portion of a direct or indirect interest (i.e.,
equity in a Subsidiary) in any Company Asset other than (i) tangible personal property that is not sold or transferred in connection with the sale or transfer of real property or (ii) a leasehold interest in real property that is otherwise
sold or transferred in the ordinary course of business; (b) any condemnation or deeding in lieu of condemnation of all or a portion of any Company Asset used for restoration of the Facility; (c) any financing or refinancing of any Company
Asset; (d) the receipt of proceeds due to any fire or other casualty to any Company Asset; and (e) any other transaction involving a Company Asset, the proceeds of which, in accordance with GAAP, are considered to be capital in nature. For
purposes of distributions under Section 8.2, net proceeds from a Capital Transaction shall only include those distributions to be made to the Members under this Agreement after any third party payments relating to the Capital Transaction have
been made. 
 “Carrying Value” shall mean, with respect to any asset, the Adjusted Basis of
the asset, except as follows: 
 (a)        the initial Carrying Value
of an asset contributed by a Member to the Company shall be the gross fair market value of the asset, as determined and agreed upon by the Members at the time the asset is contributed; 

(b)        The Carrying Values of the Company’s assets shall be adjusted to
equal their respective gross fair market values, as determined by the Managing Member as of the following times: (i) the acquisition of an additional interest in the Company by any new or existing Assignee or Member in exchange for more than a
de minimis Capital Contribution; (ii) the distribution by the Company to a Member or an Assignee of more than a de minimis amount of property as consideration for all or part of a Member’s Interest or an Assignee’s economic rights;
and (iii) the liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); but adjustments pursuant to clauses (i) and (ii) above shall be made only if the Managing Member reasonably determines that
such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company; 
 (c)        The Carrying Value of an asset of the Company distributed to a Member shall be adjusted to equal the gross fair market value of the asset on the date of
distribution as determined by the Managing Member; and 

(d)        The Carrying Values of the Company’s assets shall be increased
(or decreased) to reflect any adjustments to the Adjusted Basis of those assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that those adjustments are taken into account in determining Capital Accounts pursuant to
Regulations Section 1.704-l(b)(2)(iv)(m); but the 

  
 4 

 
Carrying Values shall not be adjusted pursuant to this clause (d) to the extent the Managing Member determines that an adjustment pursuant to clause (b) above is necessary or
appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d). 
 If the Carrying Value of an asset is determined or adjusted pursuant to clauses (a), (b) or (d), such Carrying Value shall thereafter be adjusted by the Depreciation taken into account with respect
to the asset for purposes of computing Profit and Loss. 
 “Certificate of Formation” shall
mean the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware on January 7, 2013, as the same may hereafter be amended and/or restated from time to time. 

“CHP” shall have the meaning set forth in the preamble of this Agreement, and shall include any of its
assignees or transferees to the extent permitted in this Agreement, but only so long as any such Person continues in its capacity as a Member in the Company. 
 “CHP Guarantor” shall mean CHP REIT or another Affiliate of CHP acceptable to the Lender. 
 “CHP Operating Partnership” means CHP Partners, LP, a Delaware limited partnership. 
 “CHP Person” shall mean CHP or an Affiliate of CHP. 
 “CHP Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the extent resulting from gross negligence, willful misconduct or fraud of CHP or any Affiliate of CHP.

 “CHP REIT” shall mean CNL Healthcare Properties, Inc., a Maryland corporation. 

“CHP Transfer Amount” shall have the meaning set forth in Section 9.5(a)(iii). 

“Claim” shall mean any claim or demand for payment made by a Lender to a CHP Guarantor or Montecito
Guarantor under any of the Affiliate Guaranties. 
 “Claremont Buyer” shall have the meaning
set forth in the Recitals of this Agreement. 
 “Claremont Seller” shall have the meaning set
forth in the Recitals of this Agreement. 
 “Code” shall mean the Internal Revenue Code of
1986, as amended from time to time, or any corresponding provision(s) of succeeding law. 

“Company” shall have the meaning set forth in the preamble of this Agreement. 

  
 5 

 “Company Assets” shall mean all right, title and interest
of the Company in and to all or any portion of the assets of the Company and any property acquired in exchange therefor or in connection therewith. 
 “Company Minimum Gain” shall have the same meaning as the term “partnership minimum gain” set forth in Sections 1.704-2(b)(2) and 1.704-2(d) of the Regulations. 

“Confidential Information” shall have the meaning set forth in Section 13.15. 

“Contributing Member” shall have the meaning set forth in Section 6.4. 

“Costs” shall have the meaning set forth in Section 4.3(a). 

“CPI” shall have the meaning set forth for such term in a Management Agreement. 

“Depreciation” shall mean, for each Fiscal Year, an amount equal to the depreciation, amortization or
other cost recovery deduction allowable with respect to an asset for such Fiscal Year, except that if the Carrying Value of an asset differs from its Adjusted Basis at the beginning of the Fiscal Year, Depreciation shall be an amount which bears the
same ratio to the beginning Carrying Value as the federal income tax depreciation, amortization or other cost recovery deduction for the Fiscal Year bears to such beginning Adjusted Basis; but if the Adjusted Basis of an asset at the beginning of a
Fiscal Year is zero, Depreciation shall be determined with reference to the beginning Carrying Value using any reasonable method selected by the Tax Matters Member. 

“Effective Date” shall have the meaning set forth in the Preamble. 

“EO13224” shall have the meaning set forth in Section 4.7. 

“ERISA” shall mean the Employee Income Security Act of 1974, as amended. 

“Facility” shall mean the medical office facility listed on Schedule 1.1 and shall include all
real property, including, without limitation, the Improvements and related personal property comprising such Facility and owned by the Facility Entity. 
 “Facility Documents” shall mean, with respect to the Facility, (a) a Management Agreement, (b) any Leases, and (c) all other agreements relating to the Facility.

 “Facility Entity” shall mean each Subsidiary which owns the fee interest in the Facility,
including, without limitation, any Subsidiary formed by the Company pursuant to this Agreement or the Transfer Agreement for the purpose of acquiring, owning, developing, financing, constructing, operating and/or selling the Facility. 

“Facility Manager” shall mean StoneCreek Investment Corporation, a California corporation, d/b/a
StoneCreek Company, or any successor manager under a Management Agreement. 

  
 6 

 “Financing” shall mean the senior mortgage indebtedness of
the Facility Entity. 
 “Fiscal Year” shall mean the fiscal year of this Company, which shall
be the calendar year; provided that the first Fiscal Year of the Term shall commence on the Effective Date and shall end on the last day of the calendar year in which the Effective Date occurs and the last Fiscal Year of the Term shall end on the
last day of the Term and shall commence on the first day of the calendar year in which such last day occurs. 

“Framework Agreement” means that certain Framework Agreement dated as of January 14, 2013 between
MMAC Berkshire, LLC, a Delaware limited liability company, and the CHP Operating Partnership, as the same may be amended. 
 “GAAP” shall mean generally accepted accounting principles in the United States of America. 
 “Improvements” shall mean all structures and buildings located on the Property. 
 “Indemnified Person” shall have the meaning set forth in Section 4.3(a). 
 “Independent Accountant” shall mean an accounting firm jointly agreed upon by the Members. The Members hereby acknowledge that they shall give preference to one of the following
accounting firms as the Independent Accountant: Ernst & Young, PricewaterhouseCoopers, KPMG, or Deloitte Touche. 
 “Initial Arbitrator” shall have the meaning set forth in Section 13.7(b). 
 “Interest” shall mean the entire limited liability company interest of a Member in the Company at any particular time, including, without limitation, the right of such Member to any and
all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of such Member to comply with all the terms and provisions of this Agreement. For purposes of clarity, the Interest of CHP shall include
CHP’s rights and obligations as Managing Member hereunder. 
 “Internal Rate of Return”
shall mean, the internal rate of return calculated by using a “XIRR” function using exact dates for all contributions and disbursements made by or to the Members. Any payments received from a Non-Contributing Member to repay a Member Loan
shall not be included in the internal rate of return calculation. 
 “IRS” shall mean the
Internal Revenue Service and any successor agency or entity thereto. 
 “Lease” shall mean,
with respect to the Facility, those certain lease agreements by and between the Facility Entity and any third-party tenants. 
 “Lender” shall mean Regions Bank, N.A., or the lender under any future financing or refinancing. 

  
 7 

 “Lien” shall mean any mortgage, deed of trust, deed to
secure debt, lien (statutory or other), pledge, hypothecation, assignment, preference, priority, security interest, or any other encumbrance or charge on or affecting real or personal property, or any portion thereof, or any interest therein
(including, without limitation, any conditional sale or other title retention agreement, any sale-leaseback, any financing lease having a similar economic effect to any of the foregoing, the filing of any financing statement or other similar
instrument under the UCC or any comparable law of any jurisdiction, domestic or foreign, and mechanics’, materialmen’s and any other similar lien or encumbrance). 

“Liquidity Event” means any merger, reorganization, business combination, share exchange, acquisition
by any Person or related group of Persons of beneficial ownership of all or substantially all of the equity shares of a Member in one or more related transactions, or other similar transaction involving a Member pursuant to which Member’s
stockholders receive for their equity shares, as full or partial consideration, cash, listed or non-listed equity securities or combination thereof, or a sale of all or substantially all of the assets of a Member. 

“Loan Agreement” shall mean that certain loan agreement, dated as of the date hereof, among the
Facility Entity and the Lender, as the same may be amended, restated, supplemented or otherwise modified from time to time. 
 “Loan Documents” shall mean the documents evidencing the Financing, and any future refinancing thereof. 

“Major Decisions” shall have the meaning set forth in Section 3.5. 

“Management Agreement” shall mean with respect to the Facility, a Management Services Agreement among
the Facility Manager and the Facility Entity, each such Management Agreement having been executed or to be executed in connection with the management of the Facility, as it may hereafter be amended or modified from time to time. 

“Managing Member” shall mean CHP. 

“Mandatory Capital Contribution” shall have the meaning set forth in Section 6.2. 

“Material Contract” shall mean any contract, lease, license or other agreement pursuant to which
either: (a) the Company is obligated to pay or expend more than $50,000 in any Fiscal Year or (b) a Member or an Affiliate of a Member is a party. 
 “Member” shall mean each of CHP (in its capacity as Managing Member and otherwise) and Montecito, and any Substituted Member who is admitted as a member of the Company after the Effective
Date. 
 “Member Loan” shall have the meaning set forth in Section 6.4. 

“Member Loan Rate” shall mean five percent (5%) per annum, compounded annually. 

  
 8 

 “Member Minimum Gain” shall mean the amount, with respect
to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3). 

“Member Nonrecourse Debt” shall have the same meaning as the term “partner nonrecourse debt”
set forth in Regulations Section 1.704-2(b)(4). 
 “Member Nonrecourse Deductions” shall
have the same meaning as “partner nonrecourse deductions” set forth in Regulations Section 1.704-2(i)(1) and (2). The amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a Fiscal Year equals the
excess, if any, of the net increase, if any, in the amount of Member Minimum Gain attributable to such Member Nonrecourse Debt during that Fiscal Year over the aggregate amount of any distributions during that Fiscal Year to the Member that bears
the economic risk of loss for such Member Nonrecourse Debt to the extent such distributions are from the proceeds of such Member Nonrecourse Debt and are allocable to an increase in Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined according to the provisions of Regulations Section 1.704-2(i)(2). 

“Montecito” shall have the meaning set forth in the preamble of this Agreement, and shall include any
of its assignees or transferees to the extent permitted in this Agreement, but only so long as any such Person continues in its capacity as a Member in the Company. 

“Montecito Guarantor” shall mean MMAC Berkshire, LLC, a Delaware limited liability company, or another
Affiliate of Montecito acceptable to the Lender. 
 “Montecito Person” shall mean Montecito or
an Affiliate of Montecito. 
 “Montecito Principals” shall mean Chip Conk and Paul Sandler.

 “Montecito Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the
extent resulting from the gross negligence, willful misconduct or fraud of a Montecito Guarantor or any Affiliate of a Montecito Guarantor. 
 “Net Operating Cash Flow” for any month or Fiscal Year, shall mean cash flow related to the Facility after all operating expenses and Company expenses, excluding depreciation and
amortization, and including the property management fee to the Facility Manager, debt service, TI/LC Reserve payment, CapEx, and repayment of any Member loans or advances. Net Operating Cash Flow shall exclude Capital Proceeds. 

“Non-Contributing Member” shall have the meaning set forth in Section 6.4. 

“Non-Discretionary Items” shall mean (i) real estate taxes, (ii) insurance premiums,
(iii) regular payments of debt service and any reserve amounts due under the Financing or any future refinancing thereof (but excluding the principal amount of such indebtedness at the maturity date of such Financing, as the same may be
accelerated), (iv) amounts necessary to pay judgments or liens against (a) the Company, (b) any of the Company Assets, (c) any of the Subsidiaries or (d) any Subsidiary’s assets (including, without limitation,

  
 9 

 
the Property), and which, in each case, have been finally adjudicated, (v) any amounts required to be withheld pursuant to Section 1446 of the Code (or similar provisions of state or
local law), (vi) amounts currently due and payable, or to become due and payable within thirty (30) days, under any leases, service contracts or other agreements or contractual obligations (to the extent not entered into in violation of
this Agreement) to which the Company or any of the Subsidiaries is a party or obligor, whether or not the same are categorized for accounting purposes as ordinary operating expenses or capital improvements, and (vii) other amounts that are
required to be paid in the event of an emergency. 
 “Nonrecourse Deductions” shall have the
meaning set forth in Regulations Section 1.704-2(b)(1). The amount of Nonrecourse Deductions for a Fiscal Year equals the excess, if any, of the net increase, if any, in the amount of Company Minimum Gain during that Fiscal Year over the
aggregate amount of any distributions during that Fiscal Year of proceeds of a Nonrecourse Liability that are allocable to an increase in Company Minimum Gain, determined according to the provisions of Section 1.704-2(c) of the Regulations.

 “Nonrecourse Liability” shall have the meaning set forth in Sections 1.704-2(b)(3) and
1.752-1(a)(2) of the Regulations. 
 “Objection Notice” shall have the meaning set forth in
Section 13.7(b). 
 “OFAC” shall have the meaning set forth in
Section 4.7. 
 “Offer Amount” shall have the meaning set forth in Section 12.1(a).

 “Offeree” shall have the meaning set forth in Section 12.1(a). 

“Offeror” shall have the meaning set forth in Section 12.1(a). 

“Organizational Document” shall mean, with respect to any Person: (a) in the case of a
corporation, such Person’s certificate of incorporation and by-laws, and any shareholder agreement, voting trust or similar arrangement applicable to any of such Person’s authorized shares of capital stock; (b) in the case of a
partnership, such Person’s certificate of limited partnership, partnership agreement, voting trusts, statement of qualification or similar arrangements applicable to any of its partnership interests; (c) in the case of a limited liability
company, such Person’s certificate of formation or articles of organization, limited liability company operating agreement or other document affecting the rights of holders of limited liability company interests; or (d) in the case of any
other legal entity, such Person’s organizational documents and all other documents affecting the rights of holders of equity interests in such Person. 
 “Partially Adjusted Capital Account” shall mean, with respect to any Member for any Fiscal Year, the Capital Account balance of such Member at the beginning of such period, adjusted as
set forth in the definition of Capital Account for all contributions and distributions during such period and all special allocations pursuant to Section 7.3 with respect to such period but before giving effect to any allocation with respect to
such period pursuant to Section 7.2. 

  
 10 

 “Percentage Interest” shall mean, with respect to any
Member, the percentage interest listed for each Member in Schedule 6.1, as the same may be adjusted pursuant to the terms of this Agreement. 
 “Person” shall mean any individual, partnership, corporation, limited liability company, trust or other legal entity. 

“Plan Violation” shall mean a transaction, condition, or event that would constitute a nonexempt
prohibited transaction under ERISA. 
 “Proceeds” shall have the meaning set forth in
Section 9.5(a)(iii)(C). 
 “Profits and Losses” shall mean, for each Fiscal Year or other
period, an amount equal to the Company’s taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 
 (a)        Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to
such taxable income or loss; 
 (b)        Any expenditures of the
Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be
subtracted from such taxable income or loss; 
 (c)        In the event
the Carrying Value of any Company Asset is adjusted pursuant to subparagraph (b) or subparagraph (c) of the definition of Carrying Value herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition
of such asset for purposes of computing Profits or Losses; 

(d)        Gain or loss resulting from any disposition of a Company Asset with
respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Carrying Value of the asset disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Carrying Value;

 (e)        In lieu of the depreciation, amortization and other cost
recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year or other period, computed in accordance with the terms of this Agreement; and 

(f)        Notwithstanding any other provision of this Agreement, any items
which are specially allocated pursuant to Section 7.3 shall not be taken into account in computing Profits or Losses. In addition, any items which are specially allocated pursuant to Sections 7.2(a) or 7.2(b) shall not be taken into account in
computing Profits and Losses for purposes of Section 7.2(c). 

  
 11 

 “Prohibited Person” shall have the meaning set forth in
Section 4.7. 
 “Property” shall mean the real property owned by the Facility Entity and
upon which the Facility has been constructed. 
 “Proposed Budget” shall have the meaning set
forth in Section 5.5. 
 “Prospective Buyer” shall have the meaning set forth in
Section 9.5(a)(iii). 
 “PSA” shall have the meaning set forth in the Recitals of this
Agreement. 
 “Purchaser” shall have the meaning set forth in Section 12.3(a).

 “Regulations” shall mean the permanent and temporary regulations, and all amendments,
modifications and supplements thereof, from time to time promulgated by the Department of the Treasury under the Code. 
 “Rejection Notice” shall have the meaning set forth in Section 12.2(a). 
 “REOC” shall have the meaning set forth in Section 13.9(b). 
 “Reply Notice” shall have the meaning set forth in Section 12.1(b). 
 “ROFO Amount” shall have the meaning set forth in Section 12.2(a). 
 “ROFO Closing Date” shall have the meaning set forth in Section 12.3(a). 
 “ROFO Recipient” shall have the meaning set forth in Section 12.3(a). 
 “Secondary Arbitrator” shall have the meaning set forth in Section 13.7(b). 
 “Secondary Objection Notice” shall have the meaning set forth in Section 13.7(b). 
 “Seller” shall have the meaning set forth in Section 12.3(a). 
 “Selling Amount” shall have the meaning set forth in Section 12.1(a). 
 “Subsidiary” shall mean any entity in which the Company holds any ownership interests, whether directly or indirectly through one or more Persons. 

“Substituted Member” shall mean any Person admitted to the Company as a Member pursuant to the
provisions of Section 9.3. 
 “Tag-Along Offer” shall have the meaning set forth in
Section 9.5(a)(iii). 
 “Target Capital Account” shall mean, with respect to any Member
for any Fiscal Year or other period, an amount (which may be either a positive or negative balance) equal to (a) the hypothetical distribution (if any) such Member would receive if all Company Assets, including cash, were sold for cash equal to
their Carrying Values (taking into account any 

  
 12 

 
adjustments to Carrying Values for such period), all Company liabilities were satisfied in cash according to their terms (limited, with respect to each Nonrecourse Liability of the Company, to
the Carrying Values of the assets securing such liability), and the net proceeds of such sale to the Company (after satisfaction of said liabilities) were distributed in full pursuant to Section 10.3 on the last day of such period, minus
(b) the sum of (i) such Member’s share of Company Minimum Gain and Member Minimum Gain immediately prior to such deemed sale, plus (ii) the amount, if any, which such Member is obligated to contribute to the capital of the
Company pursuant to the terms of this Agreement as of the last day of such period (but only to the extent such capital contribution obligation has not been taken into account in determining such Member’s share of Member Minimum Gain).

 “Tax Matters Member” shall mean the Managing Member. 

“Term” shall have the meaning set forth in Section 2.2. 

“Third Party Costs and Expenses” shall mean, with respect to each Claim made against a Montecito
Guarantor or a CHP Guarantor, as applicable, the reasonable third party costs and expenses actually incurred by a Montecito Guarantor or a CHP Guarantor, as applicable, in connection with such Claim, including, without limitation, reasonable costs
and expenses (including legal fees and expenses) of settlement discussions, litigation, arbitration, mediation or other proceedings relating to the Claim. 
 “TI/LC Reserve” shall have the meaning set forth in the Management Agreement. 
 “Total Capital Contribution” shall mean, with respect to any Member, the Initial Capital Contributions and all additional Capital Contributions made by such Member. 

“Transfer” shall mean, with respect to a specified interest, any transfer, sale, pledge, hypothecation,
encumbrance, assignment or other disposition of any sort, voluntary or involuntary, whether by operation of law or otherwise, of all or any portion of such interest, or any agreement or arrangement to do any of the foregoing. 

“Transfer Expenses” mean any customary transaction expenses in connection with a sale of the Facility,
including, without limitation, brokerage commissions, transfer taxes, loan prepayment fees and other costs, to the extent the same are saved in the proposed Transfer between the Members; such expenses to be reasonably determined by an independent
accountant of the Company in a manner consistent with then customary market practices for properties similar to the Facility and to be allocated equitably among the Members in accordance with their Percentage Interests. 

“Transfer Notice” shall have the meaning set forth in Section 12.2(a). 

“Transfer Price” shall have the meaning set forth in Section 12.2(a). 

“Transfer Price Notice” shall have the meaning set forth in Section 12.2(a). 

“UCC” shall mean the Uniform Commercial Code as in effect in the State of Delaware, as amended from
time to time, or any corresponding provision(s) of succeeding law. 

  
 13 

 “Venue” shall have the meaning set forth in
Section 13.7(a). 
 1.2          General Interpretive
Principles. 
 (a)        All references to sections, schedules and
exhibits are to sections, schedules and exhibits in or to this Agreement unless otherwise specified. 

(b)        Unless otherwise specified, the words hereof, herein and hereunder
and words of similar import will refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 (c)        If the context requires, the use of any gender will also refer to any other gender, and the use of either number will also refer to the other number. The
word including is not exclusive; if exclusion is intended, the word comprising is used instead. The word or will be construed to mean and/or unless the context clearly prohibits that construction. 

(d)        All terms that are defined by the UCC have the same meanings assigned
to them by the UCC, unless (and to the extent) they are varied by this Agreement. 

(e)        All accounting terms not specifically defined have the meanings
determined by reference to GAAP. 
 (f)        Unless the context
prevents this construction, a reference to the Facility will be construed to refer to all or any portion of the Facility. 
 (g)        The term mortgage shall mean a mortgage, deed of trust, deed to secure debt or similar instrument, as applicable, and mortgagee means the secured party
under a mortgage. 
 (h)        The term deemed means conclusively
presumed. The absence of a conclusive presumption does not mean that a particular circumstance does not exist or that a particular condition is not satisfied; it just means that there is no conclusive presumption. 

(i)        The term presumed means presumed subject to rebuttal and the burden
of proof is on the Person seeking to rebut the fact presumed. 

(j)        All yields and interest rates will be calculated on the basis of a
360-day year. 
 (k)        Any consent required by a Member that is
described in this Agreement as not to be unreasonably withheld shall mean that such consent shall not be unreasonably withheld, conditioned or delayed. 

  
 14 

 ARTICLE 2 
 THE COMPANY AND ITS BUSINESS 

2.1          Company Name.    The business
of the Company shall be conducted under the name of “CHP MONTECITO PARTNERS I, LLC” in the State of Delaware and under such name or such assumed names as the Managing Member deems necessary or appropriate to comply with the requirements of
any other jurisdiction in which the Company may be required to qualify. 

2.2          Term.    The term of the
Company shall have commenced on the date of the filing of the Certificate of Formation with the State of Delaware and shall continue in full force and effect until it is dissolved and its affairs wound up in accordance with the terms of this
Agreement and the applicable provisions of the Act (“Term”). 

2.3          Filing of Certificate and
Amendments.    The Certificate of Formation was filed with the Secretary of State of the State of Delaware. The Managing Member hereby agrees to cause the execution and filing of any required amendments to the Certificate of
Formation and shall do all other acts requisite for the constitution of the Company as a limited liability company pursuant to the laws of the State of Delaware or any other applicable law. 

2.4          Business; Scope of Members’ Authority.

 (a)        The Company is formed for the purpose of
(i) directly or through Subsidiaries, engaging in the acquisition, ownership, development, financing, construction, management and sale of medical office facilities throughout the United States, and (ii) transacting any and all lawful
business that is incident, necessary or appropriate to accomplish the foregoing. 

(b)        Except as otherwise expressly and specifically provided in this
Agreement, no Member shall have the authority to bind, to act for, or to assume any obligation or responsibility on behalf of, the Company or any other Member. Neither the Company nor any Member shall, by virtue of executing this Agreement, be
responsible or liable for any indebtedness or obligation of any other Member incurred or arising either before or after the Effective Date of this Agreement, except, as to the Company, as to those joint responsibilities, liabilities, indebtedness,
or obligations expressly assumed by the Company as of the Effective Date or incurred after the Effective Date pursuant to and as limited by the terms of this Agreement. 

(c)        Montecito shall reasonably cooperate with CHP and its Affiliates in
their compliance with applicable REIT and securities laws. 

2.5          Principal Office; Registered
Agent.    The principal office of the Company shall initially be at the offices of CHP at c/o CNL Healthcare Properties, Inc., 450 South Orange Avenue, Orlando, Florida 32801 or such other place as the Members may from time
to time determine. The registered agent and the registered address, respectively, of the Company shall be National Registered Agents, Inc. at c/o National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Managing
Member may elect to change the Company’s registered agent and the Company’s registered and principal offices by complying with the relevant requirements of the Act. 

  
 15 

 2.6      Authorized
Persons.  The Person who executed, delivered and filed the Certificate of Formation with the Office of the Delaware Secretary of State is an authorized person within the meaning of the Act, and upon the filing of the Certificate of
Formation with the Office of the Delaware Secretary of State, his or her powers as an authorized person ceased. The Managing Member is hereby designated as an “authorized person” within the meaning of the Act. Any one of such authorized
persons is hereby authorized to execute, deliver and file any other certificates or documents (and any amendments and/or restatements thereof) on behalf of the Company. The existence of the Company as a separate legal entity shall continue until
cancellation of the Certificate of Formation as provided in the Act. 

2.7      Representations by Members.  Each Member represents, warrants,
covenants and acknowledges that (a) it is a corporation, limited liability company or limited partnership duly organized or formed and is in good standing in the jurisdiction in which it has been organized or formed, (b) it has the power
and authority to authorize the execution, delivery and performance of this Agreement, (c) it has been duly authorized and is otherwise duly qualified to purchase and hold its Interest and to execute and deliver this Agreement and all other
instruments executed and delivered on behalf of it in connection with the acquisition of its Interest, (d) the person or persons executing and delivering this Agreement on behalf of a Member are duly authorized to do so, (e) the
consummation of such transactions will not result in a breach or violation of, or a default under, its charter or bylaws, if such Member is a corporation, or its certificate of limited partnership or its partnership agreement, if such Member is a
partnership, or its operating agreement if such Member is a limited liability company, or any existing agreement by which it or any of its assets are bound, and (f) this Agreement is a valid and binding agreement on the part of such Member
enforceable in accordance with its terms against such Member, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors and
general principles of equity. 
 2.8      Organization
Expenses.    Each Member shall bear the costs of its own legal counsel and other professional advisors in connection with the negotiation of this Agreement. All out-of-pocket expenses that have been incurred by or on behalf
of the Company by a CHP Person or a Montecito Person on or prior to the Effective Date shall be expenses of the Company; provided, that, the Members acknowledge that certain expenses incurred prior to the Effective Date shall be governed in
accordance with the Framework Agreement. 
 2.9      Securities Laws
Restrictions.    The Interests have not been registered under the Securities Act of 1933, as amended, or under the securities laws of the State of Delaware or any other jurisdiction. Consequently, the Interests may not be
sold, Transferred, assigned, pledged, hypothecated or otherwise disposed of, except in accordance with the provisions of such laws and this Agreement. 

  
 16 

 ARTICLE 3 
 MANAGEMENT OF COMPANY BUSINESS 

3.1          Appointment of Managing
Member.   CHP will be the initial Managing Member of the Company with the rights and responsibilities set forth in this Agreement. The rights of the Managing Member may not be assigned to any other Person whether voluntarily or by
operation of law. The duties of the Managing Member may not be delegated to any other Person whether voluntarily or by operation of law. Nothing in the preceding sentence is intended to prohibit or restrict the Managing Member from engaging a CHP
Person, a Montecito Person, facility managers, accountants, lawyers and other professional and independent service providers for the purpose of performing services for the Company. 

3.2          Duties of Managing Member. 

Subject to obtaining the unanimous consent of the Members to all Major Decisions as set forth in Section 3.5,
the Managing Member will have the authority and the duty to manage the Company and implement the purposes of the Company in accordance with the terms of this Agreement acting in a prompt and businesslike manner, and exercising such care and skill as
a prudent owner with sophistication and experience in owning, operating and managing facilities similar to the Facility would exercise in dealing with its own facility. The Managing Member will devote such time to the Company and its business as is
reasonably necessary to conduct the operations of the Company and to carry out the Managing Member’s responsibilities. Subject to Section 3.5, the Managing Member shall have the following rights and authority to act on behalf of the
Company: 
 (a)        To execute any contracts on behalf of the
Company. 
 (b)        To form Subsidiaries, including, without
limitation, the Facility Entity. 
 (c)        To collect revenues
generated by the Company and to pay all expenses of the Company as permitted under this Agreement. 

(d)        To establish, maintain and draw upon checking, savings and other
accounts in the name of the Company as provided in Section 3.3. 

(e)        To make any tax elections to be made by the Company. 

(f)        To use a trade name in the operation of the Company. 

(g)        To enter into, or cause its Subsidiaries to enter into, all Facility
Documents. 
 (h)        To take all actions reasonably necessary to
cause the Facility Manager to maintain in full force and effect all licenses, permits, approvals and insurance required for the construction, operation and maintenance of the Facility. 

  
 17 

 (i)        To take all other
actions reasonably necessary to implement the purposes of the Company. 

(j)        To allocate the cost of the purchase price relating to the purchase
of the Facility between real property, personal property, and other related asset classes. 

(k)       To do any and all of the foregoing upon such terms and conditions as the
Managing Member in its reasonable discretion determines to be necessary, desirable or appropriate. 
 The
Managing Member may delegate any of the above responsibilities and obligations to any other Member of the Company upon reasonable advance notice, provided that such Member agrees to such delegation. 

3.3          Bank Accounts.    The Company
will maintain separate bank accounts in such banks as the Managing Member may designate exclusively for the deposit and disbursement of the funds of the Company. All funds of the Company shall be promptly deposited in such accounts. The Managing
Member from time to time shall authorize signatories for such accounts. 

3.4          Reimbursement for Costs and
Expenses.    Subject to the terms of the Annual Budget, the Managing Member will fix the amounts, if any, which the Company will reimburse each Member for any costs and expenses incurred by such Member on behalf and for the
benefit of the Company; provided, however, that except as otherwise provided herein or in any separately-executed agreement relating to the business and operation of the Company, no overhead or general administrative expenses of any Person other
than the Company itself shall be allocated to the operation of the Company. The Managing Member in its capacity as Managing Member and not in its capacity as a Member shall not be entitled to any fee or compensation for performing its duties and
obligations under this Agreement. 
 3.5          Major
Decisions.  All of the actions listed on Schedule 3.5 (“Major Decisions”), shall require the written approval of all Members, which approval shall be in the sole discretion of each Member. If a dispute or
deadlock arises with respect to a Major Decision, the Members shall attempt to resolve such dispute during a sixty (60) day meet, confer and cooling off period, upon the expiration of which without resolution the Members shall submit the Major
Decision to arbitration in accordance with the provisions of Section 13.7. Either party may initiate arbitration. Any Member may propose a Major Decision by sending written notice in accordance with Section 13.2 together with sufficient
information to enable the receiving Member to consider the terms of the Major Decision being proposed requesting the approval of such Major Decision; if a Member fails to respond to such request after five (5) Business Days from receipt of the
notice (or such longer time as expressly provided for in the notice), the proposing Member shall send another written notice (designated as “Second Notice”) to the other Member and if such Member fails to respond to such second
request after five (5) Business Days from receipt of the notice (or such longer time as expressly provided for in the notice), such Member will be deemed to have approved the Major Decision set forth in such notice. If CHP approves, or is
deemed to approve, a Major Decision proposed by Montecito pursuant to this Section 3.5, CHP, in its capacity as Managing Member, shall be obligated to carry out the action that constitutes such Major Decision. 

  
 18 

 ARTICLE 4 
 RIGHTS AND DUTIES OF MEMBERS 

4.4          Members Shall Not Have Power to Bind
Company.  Except as set forth in Section 3.2 in its capacity as Managing Member (if applicable), no Member, acting solely in its capacity as a Member, shall transact business for the Company nor shall any Member, acting solely in
its capacity as a Member, have the power or authority to sign, act for or bind the Company. 

4.5          Other Activities of the Members. 

(a)        Each of the Members acknowledges that the Members will continue to
pursue their separate business opportunities outside of the Company and the Facility. Each Member is free to pursue all such activities and may engage in or possess an interest in any other business venture or ventures of any nature and description
and in any vicinity whatsoever, independently or with others, including, without limitation, the ownership, development, financing, leasing, operation, management, syndication, brokerage, subdivision or sale of real property, medical office
facilities and related services, and neither the Company nor any other Member shall have any rights in and to such independent ventures or to income or profits derived therefrom. 

(b)        Each Member may engage or invest in any other activity or venture or
possess any interest therein independently or with others. None of the Members, the Company or any other Person employed by, related to or in any way affiliated with any Member or the Company shall have any duty or obligation to disclose or offer to
the Company or the other Members, or obtain for the benefit of the Company or the other Members, any other activity or venture or interest not made with respect to the Company or the Facility. None of the Company, the Members, the creditors of the
Company or any other Person having any interest in the Company shall have any claim, right or cause of action against any Member or any other Person employed by, related to or in any way affiliated with, any Member (i) by reason of any direct
or indirect investment or other participation, whether active or passive, in any such activity or venture or interest therein, or (ii) any right to any such activity or venture or interest therein or the income or profits derived therefrom.

 4.6          Indemnification. 

(a)        In the event that the Members (including the Managing Member), or any
of their direct or indirect partners, directors, officers, stockholders, members, employees, incorporators, agents, affiliates or controlling Persons (an “Indemnified Person”), become involved, in any capacity, in any threatened,
pending or completed action, proceeding or investigation, in connection with any matter arising out of or relating to the Company’s business or affairs, the Company will periodically reimburse such Indemnified Person for its reasonable legal
and other expenses (including, without limitation, the cost of any investigation and preparation) incurred in connection therewith, provided that such Indemnified Person shall promptly repay to the Company the amount of any such reimbursed expenses
paid to it if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by the Company in connection with such action, proceeding or investigation as provided in the

  
 19 

 
exception contained in the next succeeding sentence. To the fullest extent permitted by law, the Company also will defend, indemnify and hold harmless an Indemnified Person against any losses,
claims, damages, liabilities, obligations, penalties, actions, judgments, suits, proceedings, costs, expenses and disbursements of any kind or nature whatsoever, including, without limitation, reasonable attorney’s fees and costs (collectively,
“Costs”) to which such an Indemnified Person may become subject in connection with any matter arising out of or in connection with the Company’s business or affairs, except to the extent that any such Costs result solely from
the gross negligence, fraud, or willful misconduct of such Indemnified Person. If for any reason (other than the gross negligence, fraud, or willful misconduct of such Indemnified Person) the foregoing indemnification is unavailable to such
Indemnified Person, or insufficient to hold it harmless, then the Company shall contribute to the amount paid or payable by such Indemnified Person as a result of such Costs in such proportion as is appropriate to reflect not only the relative
benefits received by the Company on the one hand and such Indemnified Person on the other hand but also the relative fault of the Company and such Indemnified Person, as well as any relevant equitable considerations. The reimbursement, indemnity and
contribution obligations of the Company under this Section 4.3 shall be in addition to any liability which the Company may otherwise have to any Indemnified Person and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Company and any Indemnified Person. The reimbursement, indemnity and contribution obligations of the Company under this Section 4.3 shall be limited to the Company Assets, and no Member shall have any
personal liability on account thereof. The foregoing provisions shall survive any termination of this Agreement. 
 (b)        To the fullest extent permitted by law, each Member shall defend and indemnify the Company and the other Members against, and shall hold it and them
harmless from, any Costs as and when incurred by the Company or the other Members in connection with or resulting from such indemnifying Member’s gross negligence, fraud, or willful misconduct. 

(c)        In addition to and not in limitation of any other indemnification
obligations set forth in this Agreement, each Member shall indemnify the other with respect to: (i) any representations and warranties made in the Loan Documents by a Member thereunder which are made based upon the knowledge of such Member
thereunder; or (ii) any absolute representations and warranties made in the Loan Documents by a Member thereunder of which such Member has knowledge to be incorrect and, in each of the foregoing, (i) and (ii), that (A) are untrue but
not known to the indemnified Member at the closing of the Financing to be untrue, (B) cannot be cured within the cure period allowed in the Loan Documents with commercially reasonable efforts, and (C) result in an event of default or other
liability to the Member being indemnified. As used in this Section 4.3(c), the term “knowledge” and “known” shall mean, (x) with respect to Montecito, the current, actual (not constructive, imputed or implied)
knowledge, after due inquiry, of Chip Conk, Paul Sandler and George Baker and (y) with respect to CHP, the current, actual (not constructive, imputed or implied) knowledge, after due inquiry, of Stephen H. Mauldin and Joseph T. Johnson.

 4.7         Dealing with
Members.   Subject to compliance with Section 3.5, the fact that a Member, an Affiliate of a Member, or any officer, director, employee, member, partner, consultant or agent of a Member or an Affiliate, is directly or
indirectly interested in or connected with any Person employed by the Company to render or perform a service, or from or 

  
 20 

 
to whom the Company may buy or sell any property or have other business dealings, shall not prohibit a Member from employing such Person or from dealing with him or it on customary terms and at
competitive rates of compensation, and neither the Company, nor any of the other Members shall have any right in or to any income or profits derived therefrom by reason of this Agreement. 

4.8      Use of Company Assets.  No Member shall make use of the Company
Assets or any other funds or property of the Company, or assign its rights to specific Company property, other than for the business or benefit of the Company. 
 4.9      Designation of Tax Matters Member.  The Tax Matters Member shall act as the “tax matters member” of the Company as provided in the
regulations pursuant to Section 6231 of the Code. Each Member hereby approves of such designation and agrees to execute, certify, acknowledge, deliver, swear to, file and record at the appropriate public offices such documents as may be deemed
necessary or appropriate to evidence such approval. To the extent and in the manner provided by applicable Code sections and regulations thereunder, the Tax Matters Member (a) shall furnish the name, address, profits interest and taxpayer
identification number of each Member to the IRS and each Member shall provide such information to the Tax Matters Member upon request and (b) shall inform each Member of administrative or judicial proceedings for the adjustment of Company items
required to be taken into account by a Member for income tax purposes. Each Member hereby reserves all rights under applicable law, including, without limitation, the right to retain independent counsel of its choice at its expense (which counsel
shall receive the full cooperation of the Tax Matters Member). 
 4.10    OFAC; Not
Foreign Person; Not Prohibited Person.   No Member is a "foreign person" within the meaning of Section 1445(f)(3) of the Code. Each Member represents and warrants that it is not or will not be an entity or person
(a) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 ("EO13224"), (b) whose name appears on the United States Treasury Department's Office of Foreign
Assets Control ("OFAC") most current list of "Specifically Designated National and Blocked Persons" (which list may be published from time to time in various mediums including, without limitation, the OFAC website,
http:www.treas.gov/ofac/t11sdn.pdf), (c) who commits, threatens to commit or supports "terrorism", as that term is defined in EO13224, or (d) who is otherwise affiliated with any entity or person listed above (any and all parties or
persons described in clauses [a] - [c] above are referred to as a "Prohibited Person"). Each Member represents, warrants and covenants that it will not (e) knowingly conduct any business, nor engage in any transaction or dealing, with any
Prohibited Person, including, without limitation, knowingly making or receiving any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person in violation of applicable laws, or knowingly selling or otherwise
Transferring an interest in itself to any Prohibited Person or (f) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in EO13224. The Members agree to deliver (from time to time) to the Managing Member any such certification or other evidence as may be reasonably requested by the Managing Member, confirming that (g) no Member is a Prohibited Person
and (h) no Member has knowingly engaged in any business, transaction or dealings with a Prohibited Person, including, without limitation, knowingly making or receiving any contribution of funds, goods, or services, to or for the benefit of a
Prohibited Person in violation of applicable laws. 

  
 21 

 ARTICLE 5 
 BOOKS AND RECORDS; REPORTS 

5.1      Books and Records.   At all times during the continuance of
the Company, the Managing Member, or such other Member as the Managing Member designates in accordance with the last sentence of Section 3.2, shall (a) keep or cause to be kept true and complete books and records, including corporate and
governance documents, of the Company and its Subsidiaries in which shall be entered each transaction of the Company and its Subsidiaries and (b) maintain and keep in good order the Organizational Documents of the Company and its Subsidiaries
and monitor corporate housekeeping issues relating to the Company and its Subsidiaries. Such books and records shall be kept on the basis of the Fiscal Year in accordance with the accrual method of accounting, and shall reflect all transactions of
the Company in accordance with GAAP. 
 5.2      Availability of Books and
Records; Return of Books and Records.   All of the books and records referred to in Section 4.1 (which shall include an executed copy of this Agreement, the Certificate of Formation, and any amendments thereto) shall at all
times be maintained at the principal office of the Company or such other location as the Managing Member shall reasonably approve (which other location, upon such approval, shall be communicated to all of the Members), and shall be open to the
inspection and examination of the Members or their representatives during reasonable business hours upon reasonable prior notice to the Managing Member. 
 5.3      Reports and Statements.    Subject to the terms of Section 3.5, the Managing Member, or such other Member as the Managing Member
designates in accordance with the last sentence of Section 3.2, shall be responsible for determining the need for independent accountants, selecting the Company’s independent accountants, if any, and for preparing or overseeing the
Company’s independent accountants in the preparation of all federal, state and local tax returns required to be filed. The Managing Member shall, or, in the Managing Member’s sole discretion, such other Member as the Managing Member
designates, shall cause the accountants to deliver to the Members completed IRS Schedules K-1 promptly upon receipt from the independent accountants. Each Member shall notify the other Members upon receipt of any notice of tax examination of the
Company by federal, state or local authorities. The Managing Member shall, or in the Managing Member’s sole discretion, such other Member as the Managing Member designates shall deliver to the Company: (a) not later than the twentieth
(20th) day of each month monthly consolidated balance sheets and income statements for the Company prepared in accordance with GAAP; (b) not later than ninety (90) days after the end of each Fiscal Year, annual consolidated balance
sheets and income statements for the Company prepared in accordance with GAAP; (c) not later than April 30th following the end of each Fiscal Year, annual audited consolidated financial statements for the Company prepared in accordance
with GAAP; and (d) all documentation and calculations necessary for the Company’s independent accountants to prepare the Company’s federal tax return and K-1’s on or before June 30th of each year. In addition to, and not in limitation of the
foregoing, the Managing 

  
 22 

 
Member shall, or in the Managing Member’s sole discretion, such other Member as the Managing Member designates shall have the responsibility to monitor and manage the Company’s debt
compliance, cash management functions and annual independent audit. 

5.4      Accounting Expenses.   All out-of-pocket expenses payable to
Persons that are retained in accordance with the terms of this Agreement in connection with the keeping of the books and records of the Company and the preparation of audited or unaudited financial statements and federal, state and local tax and
information returns required to implement the provisions of this Agreement or required by any governmental authority with jurisdiction over the Company shall be borne by the Company as an ordinary expense of its business; provided, however, that any
financial or other reporting or responsibility required of the Company because a Member is an Affiliate of a public company shall be borne by such Member. The Managing Member shall procure accounting services from an advisor of CHT REIT and the
Company shall reimburse such advisor for its allocable costs for its employees who perform such accounting services. 
 5.5      Budgets.  Attached hereto as Exhibit A is the Annual Budget for the current fiscal year. In each subsequent fiscal year, the Managing Member
shall deliver to the other Members promptly upon receipt from the Facility Manager, a draft annual operations budget for the next fiscal year for the Facility (the “Proposed Budgets”). The Proposed Budget shall be considered by the
Members and a final annual operations budget shall be approved based on the Proposed Budget which shall become an Annual Budget in accordance with the requirements of the Management Agreement for such Facility. If there is a delay in the
finalization of a new Annual Budget, or if the Proposed Budget is not approved as aforesaid, the Company shall require the Facility Manager to operate the Facility pursuant to the Annual Budget for the prior fiscal year for the Facility adjusted by
any increase in the CPI from the prior calendar year. The Managing Member shall use commercially reasonable efforts to adhere to the Annual Budgets, it is understood, however, that the Annual Budgets are only projections by the Managing Member of
estimated results and that various circumstances such as, but not limited to, the cost of labor, material, services and supplies, casualty, operation of law, or economic and market conditions may make achievement of the Annual Budgets impracticable
or not obtainable. 
 ARTICLE 6 
 CAPITAL CONTRIBUTIONS, LOANS 
 AND LIABILITIES 

6.1          Initial Capital Contributions of the
Members.  The initial Capital Contributions of the Members are set forth on Schedule 6.1 attached to this Agreement, made as follows: 
 (a)      CHP has contributed Six Million Nine Hundred Seventy-Seven Thousand Two Hundred and Fifty-Seven and Two One Hundredths Dollars ($6,977,257.02) in cash to the
Company; and 
 (b)      Montecito has contributed Seven Hundred Seventy-One
Thousand Five Hundred and Forty Nine and Fifteen One Hundredths Dollars ($771,549.15) in cash to the Company. 

  
 23 

 6.2          Capital
Calls.   Any Member may, at any time or times, request all Members to make a Capital Contribution upon the giving of a Capital Call, and all Members hereby agree to make additional Capital Contributions to the Company for the
purpose of curing an event of default or a default which with the passage of time will ripen into an event of default or will give rise to the exercise of a remedy by a Lender under the Financing or any future refinancing approved by all the Members
pursuant to Section 3.5 of this Agreement (other than the repayment of the principal amount of the Financing or any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement at the maturity of
the Financing or any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement, as the same may be accelerated), or for the purpose of funding Non-Discretionary Items (such Capital Contributions, the
“Mandatory Capital Contributions”). All additional Capital Contributions other than the Mandatory Capital Contributions shall be a Major Decision subject to the mutual agreement of the Members in accordance with
Section 3.5 hereof. Upon a Capital Call, provided such Capital Call is with respect to a Mandatory Capital Contribution or an additional Capital Contribution agreed upon by the Members in accordance with Section 3.5, each
Member shall contribute as a Capital Contribution such Member’s pro rata portion of the aggregate amount specified in the Capital Call based on such Member’s Percentage Interest set forth on Schedule 6.1 hereto, other than
payments for costs and expenses to be paid by a Member pursuant to Section 4.3(b). The Capital Calls shall be given no less than ten (10) Business Days in advance of the date the Capital Contribution specified in such Capital Call is to be
made. The Members acknowledge and agree that funds from Capital Contributions will be distributed to the Facility Entity for the purposes set forth in this Section 6.2. 

6.3          Reimbursements. 

(a)        Except as provided in Sections 6.3(b) below, the Company shall
reimburse each Montecito Guarantor and CHP Guarantor, as applicable, for (i) all amounts paid by a Montecito Guarantor or CHP Guarantor in respect of a Claim made by a Lender under an Affiliate Guaranty and (ii) Third Party Costs and
Expenses incurred by a Montecito Guarantor or CHP Guarantor in respect of the Claim. The Company shall make such reimbursement from time to time, within fifteen (15) days after receipt of a demand from a Montecito Guarantor or CHP Guarantor, as
applicable, together with reasonable documentation substantiating the amount of the request. The Managing Member shall notify the Members of the amount of funds required to pay the demand from the Montecito Guarantor or CHP Guarantor, as applicable,
and shall provide the Members with reasonable documentation substantiating the amount of the request, and each Member’s required contribution amount. The Members shall fund the amount called for within ten (10) Business Days after notice
is given. 
 (b)        The Company shall have no reimbursement
obligation with respect to a Montecito Recourse Claim or CHP Recourse Claim. 

(c)        Notwithstanding the foregoing, (a) CHP shall reimburse each
Montecito Guarantor for one hundred percent (100%) of (i) all amounts paid by a Montecito Guarantor in respect of a CHP Recourse Claim made by a Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a
Montecito Guarantor in respect of a CHP Recourse Claim and (b) Montecito shall reimburse each CHP Guarantor for one hundred percent (100%) of (i) all amounts paid by a CHP Guarantor in respect of a Montecito Recourse Claim made by a

  
 24 

 
Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a CHP Guarantor in respect of a Montecito Recourse Claim. CHP and Montecito shall make such
reimbursement from time to time, within ten (10) Business Days after demand from the Montecito Guarantor or CHP Guarantor, as applicable, together with reasonable documentation substantiating the amount of the request. 

6.4          Remedies for Failure to Fund Capital Contributions.

 (a)      If any Member shall fail to timely make a Capital Contribution
required pursuant to Section 6.2 in the amount and within the time period specified in the Capital Call notice (such Member is hereinafter referred to as a “Non-Contributing Member”), the Managing Member shall give written
notice in accordance with the requirements of Section 13.2 of such failure to all other Members and any other Member or Members may fund all or part of such Capital Contribution on behalf of such Non-Contributing Member (each such funding
Member is hereinafter referred to as a “Contributing Member”). Any amounts funded by a Contributing Member on behalf of a Non-Contributing Member shall be made directly to the Company but shall be treated as (a) a recourse
demand loan made by the Contributing Member to the Non-Contributing Member (the “Member Loan”), bearing interest at the lower of (i) the rate of return to which the Contributing Member is entitled pursuant to Section 8.1
at the time such Member Loan is made, plus the Member Loan Rate, and (ii) the maximum rate permitted by applicable law, followed by (b) a capital contribution by such Non-Contributing Member to the Company. If and to the extent permitted
under the terms of the Loan Documents, the Member Loan will be secured by a UCC security interest in the Non-Contributing Member’s Interest (which the Non-Contributing Member hereby grants) and any transferee of the Non-Contributing
Member’s Interest will take that Interest subject to the lien. In addition, the lien of such UCC security interest shall be superior-in-interest to the lien of any pledge or other encumbrance granted by the Non-Contributing Member with respect
to its Interest pursuant to and in accordance with Section 9.5 hereof. The Member Loan (to the extent of unpaid principal and interest) shall be payable within thirty (30) days after written demand by the Contributing Member and shall be
repaid (x) directly by the Company on behalf of the Non-Contributing Member to the Contributing Member from Net Operating Cash Flow or Capital Proceeds otherwise distributable to the Non-Contributing Member as further provided in
Section 8.4, and (y) to the extent outstanding, upon any Transfer of any part of the Non-Contributing Member’s Interest. Any Net Operating Cash Flow or Capital Proceeds used to repay the Member Loan shall be applied first to interest
and then to principal. The Member Loan may, at the election of the Contributing Member, be evidenced by a promissory note, and the Contributing Member is hereby granted an irrevocable power of attorney, coupled with an interest, to execute and
deliver that promissory note on behalf and in the name of the Non-Contributing Member. The failure of a Contributing Member or Non-Contributing Member to execute the promissory note will not invalidate or otherwise affect the enforceability of, or
amounts owing under, any Member Loan. 
 (b)      Notwithstanding anything in
Section 6.4(a) to the contrary, if the terms of the Loan Documents prohibit treating all or any portion of a Capital Contribution contributed by a Contributing Member on behalf of a Non-Contributing Member as a Member Loan, and any Member shall
fail to timely make a Capital Contribution required pursuant to Section 6.2 in the amount and within the time period specified in the Capital Call notice, the Managing Member shall give written notice in accordance with the requirements of
Section 13.2 of such failure to 

  
 25 

 
all other Members and any other Member or Members may fund all or part of such Capital Contribution on behalf of such Non-Contributing Member as a Capital Contribution to the Company. Any amounts
funded by the Contributing Member on behalf of a Non-Contributing Member shall be made directly to the Company (and shall not be treated as a Member Loan). In such an event, (X) the Capital Account of such Contributing Member shall be increased
by two (2) times the aggregate amount of all Capital Contributions funded by such Contributing Member on behalf of itself and on behalf of the Non-Contributing Member with respect to the Capital Call in question, and (Y) the Contributing
Member’s Percentage Interest shall be increased and the Non-Contributing Member’s Percentage Interest shall be reduced each proportionately based on such increase of the Contributing Member’s Capital Account. 

6.5          Capital of the Company.   The
capital of the Company shall be the sum of the Members’ Capital Contributions. Except as otherwise provided in this Agreement, no Member shall be entitled to withdraw or receive any interest on, or return of, all or any part of its Capital
Contribution or to receive Company Assets in return for its Capital Contribution. 

6.6          Limited Liability of Members.  No Member
shall be bound by, or be personally liable for, the expenses, liabilities, indebtedness or obligations of the Company. The liability of each Member shall be limited solely to the amount of its Capital Contribution; provided, however, after a Member
has received a distribution from the Company, such Member may be liable to the Company for the amount of the distribution but only to the extent required by this Agreement or by the Act. Nothing in this Agreement shall be construed to create
liability of any Member in excess of the amount of its Capital Contribution except for gross negligence, fraud, or willful misconduct by the Managing Member in its capacity as the Managing Member. Except as otherwise expressly provided in this
Agreement, none of the Members or their authorized representatives shall have any duties or liabilities to the Company or any other Member (including any fiduciary duties, each of the Members hereby agreeing that the other Member has no fiduciary
duty to the Company or the other Members and has no fiduciary duty to the Company or any other Member in connection with the exercise of any rights or options set forth in this Agreement), whether or not such duties or liabilities otherwise arise or
exist in law or in equity, and each Member hereby expressly waives any such duties or liabilities; provided, however, that this section shall not eliminate or limit the liability of such authorized representatives or the Members (A) for acts or
omissions that involve fraud, intentional misconduct, or a knowing and culpable violation of law, or (B) for any transaction not permitted or authorized under or pursuant to this Agreement from which such authorized representative or Member
derived a personal benefit unless the Managing Member has approved in writing such transaction in accordance with this Agreement; provided, further, however, that the duty of care of each of such authorized representatives and the Members is to not
act with fraud, intentional misconduct, or a knowing and culpable violation of law. 

6.7          Financing. 

(a)      Non-Recourse; Carve-out Guaranties The Financing is, or will be, secured
by the Facility and is, or will be, non-recourse to the Company and to the Members, except as otherwise expressly set forth in the documents evidencing such Financing, provided that a Montecito Guarantor and a CHP Guarantor will be jointly and
severally responsible for certain obligations as set forth in any Affiliate Guaranties. Montecito and CHP shall cause Montecito 

  
 26 

 
Guarantor and CHP Guarantor, respectively, to the extent required by the Lender, to issue any Affiliate Guaranties, in forms acceptable to Montecito and CHP in their sole discretion. CHP,
Montecito and the Company and the CHP Guarantor and Montecito Guarantor have entered into an Indemnification and Contribution Agreement on the date hereof in the form attached hereto as Exhibit B. 

ARTICLE 7 

CAPITAL ACCOUNTS, PROFITS 
 AND LOSSES AND ALLOCATIONS 

7.1          Capital Accounts. 

(a)        The Capital Accounts of Montecito and CHP established hereunder shall
initially be set forth on Schedule 6.1. 
 (b)        A separate
Capital Account shall be maintained for each Member in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv), and this Section 7.1 shall be interpreted and applied in a manner consistent therewith. Whenever the
Company would be permitted to adjust the Capital Accounts of the Members pursuant to Treasury Regulation 1.704-1(b)(2)(iv)(f) to reflect revaluations of the Company, the Company may so adjust the Capital Accounts of the Members. In the event that
the Capital Accounts of the Members are adjusted pursuant to Treasury Regulation 1.704-1(b)(2)(iv)(f) to reflect revaluations of any of the Company’s assets or property, (i) the Capital Accounts of the Members shall be adjusted in
accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or loss, as computed for book purposes, with respect to such assets or property, (ii) the Member’s
distributive shares of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to such assets or property shall be determined so as to take account of the variation between the adjusted tax basis and the
book value of such assets or property in the same manner as under IRC Section 704(c), and (iii) the amount of upward and/or downward adjustments to the book value of the Company property shall be treated as income, gain, deduction and/or
loss for purposes of applying the allocation provisions of this Section. In the event that Code Section 704(c) applies to any Company property, the Capital Accounts of the Members shall be adjusted in accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain and loss, as computed for book purposes with respect to such Company property. 

(c)        Each Member’s Capital Account shall be maintained in accordance
with the following provisions: 

            (i)       
 Each Member’s Capital Account shall be credited with the amounts of such Member’s Capital Contributions, such Member’s distributive share of Profits and any items in the nature of income or gain which are specially allocated to
the Member pursuant to this Article 7, and the amount of any liabilities of the Company assumed by such Member or which are secured by any property distributed by the Company to such Member; 

  
 27 

 (ii)       Each Member’s Capital
Account shall be charged with the amounts of cash and the Carrying Value of any property distributed by the Company to such Member pursuant to any provision of this Agreement, such Member’s distributive share of Losses and any items in the
nature of expenses or losses which are specially allocated to the Member pursuant to this Article 7, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the
Company. 
 (iii)      If all or a portion of a Member’s Interest is
Transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the Transferred Interest; and 

(iv)      In determining the amount of any liability for purposes of this
Section 7.1(b), Section 752(c) of the Code and any other applicable provisions of the Code and Regulations shall be taken into account. 
 This Section 7.1(c) and other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b), and shall be interpreted
and applied in a manner consistent with such Regulations. If the Managing Member determines that it is prudent to modify the manner in which the Capital Accounts, or any charges or credits thereto (including charges or credits relating to
liabilities which are secured by contributions or distributed property or which are assumed by the Company or by Members), are computed in order to comply with such Regulations, the Managing Member may make such modification, but only if it is not
likely to have a material effect on the amounts to be distributed to any Member pursuant to Section 8.1, Section 8.2 or Section 10.3 upon the dissolution of the Company. The Managing Member also shall (c) make any adjustments
that may be necessary or appropriate to maintain equality between the Capital Accounts of the Members and the amount of capital reflected on the Company’s balance sheet, as computed for book purposes, in accordance with Regulations
Section 1.704-1(b)(2)(iv)(q), and (d) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b). 

7.2          General Allocation Rules.  After giving
effect to the special allocations set forth in Section 7.3, all Profits and Losses (and to the extent necessary, as set forth in clauses (a), (b) and (c) of this Section 7.2, items of gross income, gain, expense and loss) of the
Company shall be allocated to the Members as follows: 
 (a)      If the Company
has Profits for any Fiscal Year (determined prior to giving effect to this clause (a)), each Member whose Partially Adjusted Capital Account is greater than its Target Capital Account shall be allocated, proportionately, items of Company expense or
loss for such Fiscal Year equal to the difference between its Partially Adjusted Capital Account and Target Capital Account. If the Company has insufficient items of expense or loss for such Fiscal Year to satisfy the previous sentence with respect
to all such Members, the available items of expense or loss shall be allocated among such Members in proportion to such differences. 
 (b)      If the Company has Losses for any Fiscal Year (determined prior to giving effect to this clause (b)), each Member whose Partially Adjusted Capital Account is less
than its Target Capital Account shall be allocated, proportionately, items of Company gain or income for 

  
 28 

 
such Fiscal Year equal to the difference between its Partially Adjusted Capital Account and Target Capital Account. If the Company has insufficient items of income or gain for such Fiscal Year to
satisfy the previous sentence with respect to all such Members, the available items of income or gain shall be allocated among such Members in proportion to such differences. 

(c)      Any remaining Profits or Losses (as computed after giving effect to clauses
(a) and (b) of this Section 7.2) shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for the period under
consideration. To the extent possible, each Member shall be allocated a pro rata share of all Company items allocated pursuant to this clause (c). No portion of such Profits, if any, shall be allocated to a Member whose Partially Adjusted Capital
Account for the period under consideration is greater than its Target Capital Account for such period; and no portion of such Losses, if any, shall be allocated to a Member whose Target Capital Account for the period under consideration is greater
than its Partially Adjusted Capital Account for such period. 

7.3          Special Allocations.    The
following special allocations shall be made in the following order and priority: 

(a)      Company Minimum Gain Charge-back. Notwithstanding any other provision of
this Article 7, if there is a net decrease in Company Minimum Gain during any Company Fiscal Year, each Member shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to
such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to
be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Sections 1.704-2(f)(6) and 1.704-2(j)(2) of the Regulations. This Section 7.3(a) is intended to comply with the minimum gain
charge-back requirement in Section 1.704-2(f) of the Regulations and shall be interpreted consistently therewith. 
 (b)      Member Minimum Gain Charge-Back. Notwithstanding any other provision of this Article 7 except Section 7.3(a), if there is a net decrease in Member
Minimum Gain attributable to a Member Nonrecourse Debt during any Company Fiscal Year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Regulations
Section 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Member Minimum Gain attributable to
such Member Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant
thereto. The items to be so allocated shall be determined in accordance with Sections 1.704-2(i)(4) and 1.704-2(j)(2) of the Regulations. This Section 7.3(b) is intended to comply with the minimum gain charge-back requirement in
Section 1.705-2(i)(4) of the Regulations and shall be interpreted consistently therewith. 

  
 29 

 (c)      Qualified Income
Offset.  In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in the Regulations Section 1.704-1(b)(2)(ii)(d)(4) (adjustments for depletion), 1.704-1(b)(2)(ii)(d)(5) (other loss or
deduction), or 1.704-1(b)(2)(ii)(d)(6) (reasonably expected distributions), items of Company income and gain shall be specially allocated to each such Member in any amount and manner sufficient to eliminate, to the extent required by the
Regulations, the Adjusted Capital Account Deficit of such Member as quickly as possible, provided that an allocation pursuant to this Section 7.3(c) shall be made only if and to the extent that such Member would have an Adjusted Capital Account
Deficit after all other allocations provided for in this Article 7 have been tentatively made as if this Section 7.3(c) were not in the Agreement. 
 (d)      Gross Income Allocation.  In the event any Member has a deficit Capital Account at the end of any Company Fiscal Year which is in excess of the sum
of (i) the amount such Member is obligated to restore pursuant to any provision of this Agreement and (ii) the amount such Member is deemed to be obligated to restore pursuant to Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each
such Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this Section 7.3(d) shall be made only if and to the extent that such Member
would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article 7 have been tentatively made as if this Section 7.3(d) and Section 7.3(c) were not in the Agreement. 

(e)      Nonrecourse Deductions.   Nonrecourse Deductions for any
Fiscal Year shall be allocated between the Members in proportion to their respective Percentage Interests. 

(f)      Member Nonrecourse Deductions.  Any Member Nonrecourse
Deductions for any Fiscal Year or other period shall be specially allocated to the Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with
Regulations Section 1.704-2(i)(1). 
 (g)      Code Section 754
Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 734(b) or 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss
shall be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations. 

  
 30 

 (h)          Reversal
of Regulatory Allocations. 
 (i)        The “Regulatory
Allocations” consist of the “Basic Regulatory Allocations,” as defined in Section 7.3(h)(ii), the “Nonrecourse Regulatory Allocations,” as defined in Section 7.3(h)(iii), and the “Member Nonrecourse
Regulatory Allocations,” as defined in Section 7.3(h)(iv). 

(ii)       The “Basic Regulatory Allocations” consist of allocations
pursuant to Section 7.3(c), 7.3(d) and 7.3(g). Notwithstanding any other provision of this Agreement, other than the Regulatory Allocations, the Basic Regulatory Allocations shall be taken into account in allocating items of income, gain, loss
and deduction among the Members so that, to the extent possible, the net amount of such allocations of other items and the Basic Regulatory Allocations to each Member shall be equal to the net amount that would have been allocated to each such
Member if the Basic Regulatory Allocations had not occurred. For purposes of applying the foregoing sentence, allocations pursuant to this Section 7.3(h)(ii) shall only be made with respect to allocations pursuant to Section 7.3(g) to the
extent the Managing Member reasonably determines that such allocations will otherwise be inconsistent with the economic agreement among the parties to this Agreement. 

(iii)      The “Nonrecourse Regulatory Allocations” consist of all
allocations pursuant to Sections 7.3(a) and 7.3(e). Notwithstanding any other provision of this Agreement, other than the Regulatory Allocations, the Nonrecourse Regulatory Allocations shall be taken into account in allocating items of income, gain,
loss and deduction among the Members so that, to the extent possible, the net amount of such allocations of other items and the Nonrecourse Regulatory Allocations to each Member shall be equal to the net amount that would have been allocated to each
such Member if the Nonrecourse Regulatory Allocations had not occurred. For purposes of applying the foregoing sentence, (A) no allocations pursuant to this Section 7.3(h)(iii) shall be made prior to the Company Fiscal Year during which
there is a net decrease in Company Minimum Gain, and (B) allocations pursuant to this Section 7.3(h)(iii) shall be deferred with respect to allocations pursuant to Section 7.3(e) to the extent the Managing Member reasonably determines
that such allocations are likely to be offset by subsequent allocations pursuant to Section 7.3(a). 

(iv)      The “Member Nonrecourse Regulatory Allocations” consist of all
allocations pursuant to Section 7.3(b) and 7.3(f). Notwithstanding any other provision of this Agreement, other than the Regulatory Allocations, the Member Nonrecourse Regulatory Allocations shall be taken into account in allocating items of
income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such allocations of other items and the Member Nonrecourse Regulatory Allocations to each Member shall be equal to the net amount that would have
been allocated to each such Member if the Member Nonrecourse Regulatory Allocations had not occurred. For purposes of applying the foregoing sentence, (A) no allocations pursuant to this Section 7.3(h)(iv) shall be made with respect to
allocations pursuant to Section 7.3(f) relating to a particular Member Nonrecourse Debt prior to the Company Fiscal Year during which there is a net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, and then only to
the extent necessary to avoid any potential economic distortions caused by such net decrease in Member Minimum Gain, and (B) allocations pursuant to this Section 7.3(h)(iv) shall be deferred with respect to allocations

  
 31 

 
pursuant to Section 7.3(f) relating to a particular Member Nonrecourse Debt to the extent the Managing Member reasonably determined that such allocations are likely to be offset by
subsequent allocations pursuant to Section 7.3(b). 

           (v)        The
Managing Member shall have reasonable discretion, with respect to each Company Fiscal Year, to (A) apply the provisions of Sections 7.3(h)(ii), 7.3(h)(iii) and 7.3(h)(iv) in whatever order is likely to minimize the economic distortions that
might otherwise result from the Regulatory Allocations, and (B) divide all allocations pursuant to Sections 7.3(h)(ii), 7.3(h)(iii) and 7.3(h)(iv) among the Members in a manner that is likely to minimize such economic distortions. 

7.4          Income Tax Elections.   In the event
of a Transfer of all or part of a Member’s Interest (or of the interest of a partner in a partnership which is a Member) because of death or sale, the Company shall, if requested by the transferee, make the election described in
Section 754 of the Code. 
 7.5          Income Tax
Allocations. 
 (a)       Except as otherwise provided in
Section 7.5(c), for purposes of Sections 702 and 704 of the Code, or the corresponding sections of any future Federal internal revenue law, or any similar tax law of any state or other jurisdiction, the Company’s profits, gains and losses
for Federal income tax purposes, and each item of income, gain, loss or deduction entering into the computation thereof, shall be allocated among the Members in the same proportions as the corresponding “book” items are allocated pursuant
to this Section. 
 (b)       If any portion of the Profit from a Capital
Transaction allocated among the Members pursuant to Section 7.5(a) is characterized as ordinary income under the recapture provisions of the Code or is subject to a different rate of tax under the Code, each Member’s distributive share of
taxable gain from the sale of the property that gave rise to such Profit (to the extent possible) shall include a proportionate share of the recapture income or income that is subject to a different rate of tax equal to that Member’s share of
prior cumulative depreciation deductions with respect to the property that give rise to the recapture income or the income that is subject to a different rate of tax except to the extent otherwise required by Regulations Sections 1.1245-1(e) and
1.1250-1(f). 
 (c)       Each item of taxable income, gain, loss or
deduction attributable to (i) any property (other than cash) contributed by a Member to the Company, and (ii) any other property of the Company the Carrying Value of which has been adjusted pursuant to clause (iii) of the definition
of Carrying Value, shall be allocated among the Members in accordance with Section 704(c) of the Code, using such method permitted by Section 704(c) of the Code and the Regulations thereunder as may be selected by the Managing Member, with
the approval of Montecito, so as to take into account the variation, at the time of contribution or adjustment to Carrying Value, between the Adjusted Basis and the Carrying Value of such property, as required by Regulations
Section 1.704-1(b)(4)(i) and Section 1.704-3. 
 (d)       Solely
for purposes of determining a Member’s proportionate share of the “excess nonrecourse liabilities” of the Company within the meaning of Regulations Section 1.752-3(a)(3), the Members’ interests in Company profits shall be in
proportion to their respective Percentage Interests. 

  
 32 

 (e)       To the extent permitted by
Sections 1.704-2(h)(3) and 1.704-2(i)(6) of the Regulations, the Members shall endeavor to treat distributions of Net Operating Cash Flow or Capital Proceeds as having been made from the proceeds of a Nonrecourse Liability or a Member Nonrecourse
Debt only to the extent that such distributions would cause or increase an Adjusted Capital Account Deficit for any Member. 
 7.6          Transfers During Fiscal Year.  In the event of the Transfer of all or any part of a Member’s Interest (in accordance
with the provisions of this Agreement) at any time other than the end of a Fiscal Year, the share of Profit or Loss (in respect of the Interest so Transferred) shall be allocated between the transferor and the transferee in the same ratio as the
number of days in the Fiscal Year before and after such Transfer. The prior sentence shall not apply to Profit or Loss from Capital Transactions or to other extraordinary nonrecurring items. Such amounts shall be allocated between the transferor and
transferee based on the date of closing of the sale or on the date the gain is realized or the loss incurred, as the case may be. 
 7.7          Election to be Taxed as Association.    The Company shall be treated as a partnership for federal income tax
purposes. No Member or Managing Member shall cause the Company to elect to be treated other than as a partnership for federal income tax purposes in accordance with Regulations Section 301.7701-3(c), unless such election is approved in writing
by all Members. If at any time the Company has just one Member, it shall be disregarded as a separate entity for federal, state and local tax purposes. The Managing Member, in the Managing Member’s reasonable discretion, shall have the
authority to elect to treat any subsidiary of the Company that is a corporation as a “Taxable REIT Subsidiary”. 
 7.8          Assignees Treated as Members.  For all purposes of this Article 7, but for no other purpose, an Assignee shall be treated as
a Member and each reference in this Article 7 to the Members shall be deemed to include Assignees. 
 ARTICLE 8

 DISTRIBUTIONS OF NET OPERATING CASH FLOW 
 AND CAPITAL PROCEEDS 

8.1          Distributions of Net Operating Cash
Flow.  Net Operating Cash Flow distributed shall be reasonably adjusted within 30 days after the end of the last calendar quarter of each Fiscal Year (and to the extent necessary the Members agree to make appropriate adjustments among
themselves) to ensure that the amount distributable to each of the Members for the entire Fiscal Year is equal to the amounts each of the Members would have received under Section 8.1 if the Net Operating Cash Flow was determined for the entire
Fiscal Year and was distributed in a single disbursement as of the end of each Fiscal Year (such adjustments, for example, shall take into account any increased yield a Member receives as a result of receiving distributions quarterly instead of
annually). Distributions of Net Operating Cash Flow shall be made to the Members, in accordance with each Member’s Percentage Interest of the Company, within thirty (30) days after the close of each calendar quarter (unless (x) such
distribution is not in 

  
 33 

 
compliance with law or (y) such distribution would result in a breach of any covenants or undertakings provided by the Company (including covenants or undertakings provided for third party
financing) or would, in the opinion of the Members, acting reasonably, be likely to do so during the following twelve (12) months). 
 8.2          Distribution of Capital Proceeds.  Capital Proceeds shall be distributed promptly after a Capital Transaction (unless
(x) such distribution is not in compliance with law or (y) such distribution would result in a breach of any covenants or undertakings provided by the Company (including covenants or undertakings provided for third party financing) or
would, in the opinion of the Members, acting reasonably, be likely to do so during the following twelve (12) months) in the following order of priority: 
 (a)       First, to each Member, in accordance with their respective Interests, until each Member has received a ten percent (10%) Internal Rate of Return,
compounded annually, on each Member’s Total Capital Contributions after taking into account all amounts previously distributed to each Member (pursuant to Sections 8.1 and 8.2), respectively; 

(b)       Second, (i) twenty percent (20%) to Montecito, and
(ii) eighty percent (80%) to CHP, until CHP has received a twelve percent (12%) Internal Rate of Return, compounded annually, on CHP’s Total Capital Contribution after taking into account all amounts previously distributed to
CHP; and 
 (c)       Thereafter, (i) thirty percent (30%) to
Montecito and (ii) seventy percent (70%) to CHP. 

8.3          Distribution Calculations.  In applying
the terms of Section 8.1 and Section 8.2, (a) references to relative Percentage Interests or relative Capital Contributions will be those in effect at the time of the distribution, (b) until a particular priority has been
satisfied in full, no amounts will be distributable under any junior priority, and (c) all amounts distributable under a particular priority will be prorated among the Members in the manner specified within that priority, and the method of
proration applied to each dollar distributable in that priority will be the same until that priority is satisfied in full. 
 8.4          Repayment of Member Loans, Reconciliation Amounts and Other Payments. 

(a)       Notwithstanding anything to the contrary in Section 8.1 and
Section 8.2, if as a result of a Member Loan, any Member becomes a Non-Contributing Member, then any distributions that would otherwise be payable to the Non-Contributing Member pursuant to Section 8.1 or Section 8.2 will instead be
paid to the Contributing Member or Members, first to pay any accrued interest and then to pay the principal amount thereof until such Member Loan (including any accrued and unpaid interest) is repaid in full and such amounts will not be deemed to
have passed through the distribution allocations set forth in Section 8.1 and the waterfall set forth in Section 8.2. If there are two or more Contributing Members with respect to the Member Loan to a Non-Contributing Member, distributions
under Section 8.1 or Section 8.2 will be made pro rata to each Contributing Member in proportion to the relative principal amount of Member Loans (including accrued and unpaid interest) that each Contributing Member has outstanding
as a percentage of total outstanding Member Loans made to the Non-Contributing Member by all 

  
 34 

 
Contributing Members. Any distributions paid to a Contributing Member(s) pursuant to this Section 8.4(a) in respect of a Member Loan will, for tax allocation and all other purposes of this
Agreement, be treated as if they had been distributed to the Non-Contributing Member, not the Contributing Member or Members. 
 (b)       If any amount that is to be paid by a Member pursuant to Section 4.3(b) has not been paid by a Member, any distributions that would otherwise be payable
to the Member will instead be used first to pay the payment of any such indemnification reconciliation amount owed by a Member to the Company that has not been paid pursuant to Section 4.3(b) and such amounts will not be deemed to have passed
through the distribution allocations set forth in Section 8.1 and the waterfall set forth in Section 8.2. 
 8.5          Liquidation.  Subject to the terms of Sections 8.2(a), (b) and (c), in the event of the sale or other disposition of
all or substantially all of the Company Assets, the Company shall be dissolved and the proceeds of such sale or other disposition shall be distributed in liquidation as provided in Article 10, except that to the extent that the Company receives a
purchase money note or notes in exchange for all or a portion of such assets, the Company shall continue until such purchase money note or notes have been paid in full. 
 ARTICLE 9 
 DISPOSITION OF INTERESTS 

9.1          Limitations on Assignments of Interests by
Members.  Except as set forth in this Article 9 and other than (i) Transfers by Montecito or CHP to their respective Affiliates, (ii) transfers of a minority equity interest in CHP to CNL Lifestyle Properties, Inc., a
Maryland corporation, (iii) Transfers between Montecito and CHP, or (iv) pledges of, or security or similar interests in the Interests as may be required by the Lenders to the Company, which in each case shall be subject to the terms and
conditions of the Financing, no Member shall have the right to Transfer all or any portion of its Interest without the consent of the other Members in their sole discretion and the consent of Lenders and assumption of any recourse Debt by such
transferee. Notwithstanding anything to the contrary herein, in no event may a Member Transfer all or any portion of its Interest unless all necessary consents and approvals are received from the applicable governmental authority with respect to the
licensure of the Facility. Any transfer tax or similar tax imposed on Montecito or CHP relating to a transaction pursuant to Article 9 will be paid or caused to be paid by that Member (and the Member will indemnify the Company for any such transfer
tax or similar tax). 
 9.2          Assignment Binding on
Company.  No Transfer of all or any part of the Interest of a Member permitted to be made under this Agreement shall be binding upon the Company unless and until a duplicate original of such assignment or instrument of transfer, duly
executed and acknowledged by the assignor or transferor, has been delivered to the Company, and such instrument evidences (i) the written acceptance by the assignee of all of the terms and provisions of this Agreement and (ii) the
assignee’s representation that such assignment was made in accordance with all applicable laws and regulations. In addition, a Person to whom a Transfer may be made pursuant to this Article 9, may also be required, in the discretion of the
Members, and as a condition precedent to its becoming a transferee, to make certain representations, warranties and covenants including, without limitation, representations as to its net worth, sophistication and investment intent. 

  
 35 

9.3          Substituted Members. 

(a)        Members who assign all their Interests pursuant to an assignment or
assignments permitted under this Agreement shall cease to be Members of the Company except that unless and until a Substituted Member is admitted in its stead, the assigning Member shall not cease to be a Member of the Company under the Act and
shall retain the rights and powers of a Member under the Act and pursuant to this Agreement, provided that such assigning Member may, prior to the admission of a Substituted Member, assign its economic interest in its Interest, to the extent
otherwise permitted under this Article 9. Any Person who is an assignee of any portion of the Interest of a Member and who has satisfied the requirements of Section 9.1 and Section 9.2 shall become a Substituted Member only when
(i) the Managing Member has entered such assignee as a Member on the books and records of the Company, which the Managing Member is hereby directed to do upon satisfaction of such requirements, and (ii) such assignee shall have paid all
reasonable legal fees and filing costs in connection with the substitution as a Member. 

(b)        Any Person who is an assignee of any of the Interest of a Member but
who does not become a Substituted Member and desires to make a further assignment of any such Interest, shall be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Member desiring to make an assignment
of its Interest. 
 9.4          Acceptance of Prior
Acts.  Any Person who becomes a Member, by becoming a Member, accepts, ratifies and agrees to be bound by all actions duly taken pursuant to the terms and provisions of this Agreement by the Company prior to the date it became a Member
and, without limiting the generality of the foregoing, specifically ratifies and approves all agreements and other instruments as may have been executed and delivered on behalf of the Company prior to said date and which are in force and effect on
said date. 
 9.5          Permitted Transfers.

 (a)        Notwithstanding anything to the contrary herein, subject
to the terms and conditions of the Financing, the following Transfers shall be deemed “Permitted Transfers” and shall not require the consent of the other Member. 

            (i)       
 Any Member may pledge its Interest to a commercial lender in connection with a financing for the benefit of such Member or its Affiliates (other than the Financing); provided that any such pledge would not contravene the terms and conditions of
the Loan Documents; and provided further however, that the definitive loan documentation with such lender, shall provide that: (i) such lender acknowledges and agrees that such pledge, and the lien and security interest created thereby, shall
be subject and subordinate to any lien and security interest on such Member’s Interest (whether then existing or thereafter created) which secures a Member Loan made to such Member, and such lender shall covenant and agree to duly execute and
deliver such documents that may be reasonably requested by the Contributing Member to evidence such subordination, and (ii) such lender shall provide a copy to both Members 

  
 36 

 
hereunder of any notice with respect to such lender’s intent to realize upon the pledged Interest after an event of default under such financing, and the Member which is not subject to the
financing shall have the same period as provided to the defaulting Member under the applicable loan documents to remedy or cause to be remedied the defaults specified in such notice (to the extent such defaults are capable of being remedied by such
Member). All sums expended by a Member to cure the loan defaults of a defaulting Member under this Section 9.5(a)(i) shall be treated as a Member Loan hereunder. In the event the applicable defaults are not so cured and the lender realizes upon
the defaulting Member’s Interest, such realization shall be a permitted Transfer hereunder. Each Member acknowledges and agrees that the Company shall not be required to bear any costs or expenses in connection with a financing of the type
described in this Section 9.5(a)(i) (including, without limitation, any fees, costs or expenses payable to any Lender on account of such financing), and all such costs and expenses shall be borne solely by the Member to whom (or to the
Affiliate of whom) such financing is made. In no event shall any such costs or expenses incurred by a Member pursuant to and in accordance with the immediately prior sentence entitle such Member to a Capital Account credit hereunder. 

(ii)       Montecito and its successors and assigns may sell all or any portion of
its Interest subject to the right of first offer in favor of CHP, on the terms set forth in Section 12.2 hereof; provided however, that with respect to the voting rights of any third party purchaser of a portion of the Montecito Interest, such
rights will be exercised by Montecito on behalf of such purchaser as if Montecito retained 100% of its Interest. 
 (iii)       CHP and its successors and assigns may sell all or any portion of its Interest; provided however, that with respect to the voting rights of any third party
purchaser of a portion of the CHP Interest, such rights will be exercised by CHP on behalf of such purchaser as if CHP retained 100% of its Interest. If CHP desires to sell any portion of its Interest (such portion of CHP’s Interest being
referred to herein as the “CHP Transfer Amount”) to a Person that is not an Affiliate of CHP (the “Prospective Buyer”), then, at least ten (10) Business Days prior to the consummation of such proposed sale, CHP
shall offer Montecito in writing (a “Tag-Along Offer”) the opportunity to sell to the Prospective Buyer a percentage of Montecito’s Interest equal to Montecito’s Percentage Interest of the CHP Transfer Amount. Montecito
shall, within five (5) Business Days after the giving of a Tag-Along Offer, inform CHP in writing as to whether Montecito accepts such Tag-Along Offer. If Montecito, within such five (5) Business Day period (time being of the essence),
fails to advise CHP in writing that Montecito unconditionally accepts such Tag-Along Offer, then Montecito shall be deemed to have rejected such Tag-Along Offer (in which case CHP may proceed with the sale of the CHP Transfer Amount to the
Prospective Buyer without the participation of Montecito). If Montecito duly accepts such Tag-Along Offer, then Montecito shall be entitled to sell a portion of its Interest equal to its Percentage Interest of the CHP Transfer Amount to the
Prospective Buyer, on the terms of the Tag-Along Offer and at the same time as CHP sells the balance of the CHP Transfer Amount to the Prospective Buyer. If Montecito does not timely tender the applicable portion of its Interest, or does not
otherwise reasonably cooperate in facilitating the sale of the applicable portion of its Interest to the Prospective Buyer, then Montecito will be deemed irrevocably to have waived its rights with respect to the applicable Tag-Along Offer. In the
event Montecito does not accept a Tag-Along Offer (or if Montecito is deemed to have waived its rights in respect of a Tag-Along Offer as provided herein), CHP will be entitled to consummate its Transfer of the CHP Transfer Amount to the Prospective
Buyer, within six (6) months 

  
 37 

 
following such non-acceptance or waiver, on basic economic terms substantially the same (or less favorable to CHP) as those contained in the Tag-Along Offer given to Montecito. If Montecito
timely accepts a Tag-Along Offer, then 
 (A)        on the date
scheduled for the closing of the Transfer to the Prospective Buyer, Montecito shall execute such documents and instruments, and take such other actions, as are reasonably required to consummate the sale of Montecito’s Interest, in the amount of
the Montecito Tag-Along Amount, to the Prospective Buyer (failing which CHP may proceed with the Transfer of its Interest, in the amount of the CHP Transfer Amount, to the Prospective Buyer without the participation of Montecito); 

(B)        Each Member shall bear its own transaction costs, including but not
limited to the costs of its own legal counsel and other professional advisors, in connection with the transfer of its respective Percentage Interest. All out-of-pocket expenses that have been incurred by or on behalf of the Company by either Member
with respect to the transfer shall be expenses of the Company; and 

(C)        the aggregate net proceeds (the “Proceeds”) of the
Transfer by CHP and Montecito of their respective Interests to the Prospective Buyer (after deducting the transaction costs described in the immediately preceding sub-clause (B)) shall be distributed to CHP and Montecito in proportion to their
respective Percentage Interests. 
 (iv)        CHP and its successors
and assigns may assign or sell all or a portion of its Interest to a REIT sponsored by CNL Financial Group, LLC, a Florida limited liability company, or its Affiliates. 

(v)         Montecito may from time to time and in its sole discretion
without the consent of any other Member or the Company, sell or assign its Interest in whole or in part to any Person that is a wholly-owned affiliate of MMAC Berkshire LLC, a Delaware limited liability company. Furthermore, direct or indirect
interests may be sold, conveyed, pledged or transferred in MMAC Berkshire LLC, a Delaware limited liability company, so long as one or more of those Persons that are members of MMAC Berkshire LLC, a Delaware limited liability company, as of the date
hereof continue to own not less than twenty-five percent (25%) of the interests in MMAC Berkshire LLC. Notwithstanding the foregoing, BRV-MMAC, L.L.C., a Delaware limited liability company, may sell, convey, pledge or transfer its interest in
MMAC Berkshire, LLC in whole or in part so long as Montecito Medical Property Company, LLC owns ten percent (10%) or more of MMAC Berkshire, LLC. 
 (b)         Indirect Transfers of a Member’s Interest shall be subject to the restrictions set forth in Section 9.1, provided, however, that
notwithstanding anything else contained in this agreement, any Member may sell its Interest without receiving the prior written consent of the other Member in connection with a Liquidity Event. 

  
 38 

 ARTICLE 10 
 DISSOLUTION OF THE COMPANY; 
 WINDING UP AND DISTRIBUTION OF ASSETS

 10.1        Dissolution. 

(a)        The Company shall be dissolved and its affairs shall be wound up only
upon the first to occur of the following: 

            (i)       the
entry of a decree of judicial dissolution under Section 18-802 of the Act; 

            (ii)       
the termination of the legal existence of the last remaining Member of the Company or the occurrence of any other event which terminates the continued membership of the last remaining Member of the Company in the Company unless the business of the
Company is continued in a manner permitted by this Agreement or the Act. Upon the occurrence of any event that causes the last remaining Member of the Company to cease to be a Member of the Company, to the fullest extent permitted by law, the
personal representative of such Member is hereby authorized and directed to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of such Member in the Company, agree in writing
(A) to continue the Company and (B) to the admission of the personal representative or its nominee or designee, as the case may be, as a Substituted Member of the Company, effective as of the occurrence of the event that terminated the
continued membership of the last remaining Member of the Company in the Company; 

             (iii)      
 a Capital Transaction effecting the sale, exchange, transfer, assignment or other disposition, directly or indirectly, of the Facility and receipt of the final payment of any installment obligation received as a result of any such Capital
Transaction; 

             (iv)      
 the written direction of all of the Members; or 

             (v)      
 the later of (A) the thirtieth
(30th) anniversary of the Effective Date and
(B) the date on which the term of the last Management Agreement expires, including any renewals thereof. 

(b)        No Member shall have the right to (i) withdraw or resign as a
Member of the Company, (ii) redeem, or otherwise require redemption of, its Interest or any part thereof or (iii) to the fullest extent permitted by law, dissolve itself voluntarily. 

(c)        Notwithstanding any other provision of this Agreement, the Bankruptcy
of any of the Members shall not cause said Member to cease to be a Member of the Company and upon the occurrence of such an event, the business of the Company shall continue without dissolution. To the fullest extent permitted by law, the Company
shall not be dissolved or terminated solely by reason of the Bankruptcy, removal, withdrawal, dissolution or admission of any Member. 

  
 39 

 10.2       Winding Up. 

(a)        In the event of the dissolution of the Company pursuant to
Section 10.1(a), the Managing Member may wind up the Company’s affairs. 

(b)        Upon dissolution of the Company and until the filing of a certificate
of cancellation of the Certificate of Formation as provided in the Act, the Managing Member or a liquidating trustee, as the case may be, may, in the name of, and for and on behalf of, the Company, prosecute and defend suits, whether civil, criminal
or administrative, gradually settle and close the Company’s business, dispose of and convey the Company’s Asset’s and property, discharge or make reasonable provision for the Company’s liabilities, and distribute to the Members
in accordance with Section 10.3 any remaining assets of the Company, all without affecting the liability of Members and without imposing liability on any liquidating trustee. 

(c)        Upon the completion of winding up of the Company, the Managing Member
or liquidating trustee, as the case may be, shall file a certificate of cancellation of the Certificate of Formation in the Office of the Secretary of State of the State of Delaware as provided in the Act. The existence of the Company as a separate
legal entity shall continue until cancellation of the Certificate of Formation as provided in the Act. 

10.3       Distribution of Assets.    Upon the winding up
of the Company, the Company Assets shall be distributed in the following priority: 

(a)        to the satisfaction of debts and liabilities of the Company owed to
creditors (whether by payment or the making of reasonable provision for payment thereof), in order of priority as provided by law, other than debts and liabilities owed to Members, including, without limitation, Member Loans, including to the
payment of expenses of the liquidation and to the setting up of any reserves that the Managing Member or the liquidating trustee, as the case may be, shall determine are reasonably necessary for any contingent, conditional or non-matured liabilities
or obligations of the Company or the Members; 
 (b)        to the
satisfaction of debts and liabilities of the Company owed to Members; and 

(c)        to the Members, in accordance with the provisions of
Section 8.2(a), Section 8.2(b), and Section 8.2(c) as if such distribution was a distribution of Capital Proceeds. 
 ARTICLE 11 
 AMENDMENTS 

11.1       Amendments.  This Agreement may only be modified, altered,
supplemented or amended pursuant to a written agreement executed and delivered by all of the Members. 

11.2       Additional Members.   Notwithstanding
Section 11.1, if this Agreement shall be amended as a result of adding or substituting a Member, the amendment to this Agreement shall be signed by all of the Members and by the Person to be added or substituted and by the assigning Member, if
any. 

  
 40 

11.3        Documentation.     In making any
amendments, the Managing Member shall prepare and file for recordation such documents and certificates as shall be required to be prepared and filed. 
 ARTICLE 12 
 BUY-SELL; RIGHT OF FIRST OFFER 

12.1        Buy Sell. 

(a)        With the consent of Lender, at any time from and after four
(4) years from the Effective Date, either Member (the “Offeror”) may give to the other Member (the “Offeree”) a written notice in accordance with the requirements of Section 13.2 (a “Buy-Sell
Notice”) stating the Offeror’s determination of the price for the assets of the Company if the Company was sold to a third party purchaser for fair market value, as determined by a qualified independent real estate appraiser with an
MAI designation, selected by the Offeror (without application of any lack of marketability or minority interest discounts), free and clear of all liabilities, (the “Buy-Sell Price”), and stating that the Offeror will either
(i) pay to the Offeree in exchange for all the Offeree’s Interest an amount (the “Offer Amount”) equal to the cash amount that the Offeree would have received in respect of the Offeree’s Interest pursuant to
Section 8.2, net of the Transfer Expenses, in the event of a Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the Buy-Sell Notice for a sales price equal to the Buy-Sell Price or (ii) sell
all the Offeror’s Interest to the Offeree in exchange for an amount (the “Selling Amount”) equal to the cash amount Offeror would have received pursuant to Section 8.2, net of the Transfer Expenses, in the event of a
Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the Buy-Sell Notice for a sales price equal to the Buy-Sell Price. The Offer Amount and Selling Amount shall be calculated by the Offeror and included
in the Buy-Sell Notice. In the event that the Offeree does not agree with the Offer Amount or Selling Amount contained in the Buy-Sell Notice and provides written notice to the Offeror of such disagreement within three (3) Business Days after
its receipt of the Buy-Sell Notice, then the Offer Amount and Selling Amount shall be re-calculated by an Independent Accountant acting on behalf of the Company within three (3) Business Days of the issuance of a subsequent Buy-Sell Notice (the
“Second Buy-Sell Notice”), and such accountant shall notify both the Offeror and Offeree of such amounts in writing upon such calculation. 
 (b)       The Offeree shall have a period of thirty (30) days after its receipt of the Buy-Sell Notice or Second Buy-Sell Notice, if applicable, within which to
give the Offeror written notice in accordance with the requirements of Section 13.2 (the “Reply Notice”) whether the Offeree shall (i) sell its Interest to the Offeror for the Offer Amount or (ii) buy the
Offeror’s Interest for the Selling Amount. In the event that the Reply Notice is not so given prior to the expiration of the thirty (30) day period, the Offeree shall be deemed to have accepted the offer to sell its entire Interest to the
Offeror for the Offer Amount or purchase the Offeror’s entire Interest for the Selling Amount. Within ten (10) Business Days after the receipt or deemed receipt of the Reply Notice, the purchaser of the Interest shall deliver a ten percent
(10%) cash deposit to the selling party. 

  
 41 

 (c)        Closing of the Transfer
of the Offeror’s or Offeree’s Interest in accordance with the Offeree’s election will take place within one hundred twenty (120) days after receipt or deemed receipt by the Offeror of the Reply Notice, unless the selling and the
purchasing party mutually agree to an earlier closing date. At the closing, the selling Member shall transfer its Interest free and clear of all Liens in consideration of its receipt by wire transfer of the purchase price on the terms and conditions
set forth in Section 12.3 below. Should either Member default in its obligation to close when it is obligated to do so, (i) the defaulting purchasing party shall forfeit the deposit, (ii) the defaulting Member shall have no further
ability to invoke the provisions of this Section 12.1 and (iii) the non-defaulting Member (A) shall have the right to buy the defaulting Member’s Interest for a Buy-Sell Price that shall be reduced by ten percent (10%), which
right shall continue for a period of thirty (30) days following the default of the defaulting purchasing party and (B) shall be entitled to specific performance of such obligation. If the non-defaulting Member exercises the right set forth
in the foregoing clause (iii), the closing of the purchase of the defaulting Member’s Interest shall occur subject to and in accordance with the provisions of Section 12.3. 

(d)        Notwithstanding anything to the contrary contained in this
Section 12.1, if at any time during the Term of the Company either of the Montecito Principals ceases to be directly associated with Montecito, for any reason whatsoever, then Montecito shall have sixty (60) days from the date of the
departure of such Montecito Principal to hire or otherwise put in place a suitable replacement, with the same credentials as the departing Montecito Principal, to serve in the same capacity as the departing Montecito Principal; provided, however,
that if CHP does not consent to such replacement, then CHP may accelerate Section 12.1, regardless of whether the four-year period has expired, and immediately exercise its buy-sell rights as set forth in Section 12.1(a), (b) and (c).
CHP shall act reasonably in exercising its business judgment for purposes of deciding whether or not to consent to such replacement. Notwithstanding the foregoing, so long as Montecito is diligently finding a replacement for the departing Montecito
Principal, then the sixty-day period set forth herein shall be extended until such time as Montecito hires or otherwise puts in place such replacement. 
 12.2        Right of First Offer. 
 (a)        Subject to the terms and conditions of Article 9 of this Agreement and notwithstanding anything to the contrary contained herein, if, at any time,
Montecito intends to sell all or a portion of its Interest pursuant to Section 9.5(a)(ii), then Montecito shall give a notice (“Transfer Notice”) to CHP stating that Montecito intends to Transfer such portion of its Interest to
a third party and setting forth the terms and conditions, including gross purchase price at which Montecito is prepared to sell its Interest (the “Transfer Price”). Upon receipt of the Transfer Notice, CHP shall either accept,
reject, or challenge the Transfer Price. If the Transfer Price is accepted, CHP shall so notify Montecito (“Acceptance Notice”) and within three (3) Business Days of acceptance, the Independent Accountant acting on behalf of
the Company shall determine the cash amount (the “ROFO Amount”) that Montecito would have received in respect of such portion of Montecito’s Interest pursuant to Section 8.2, net of the Transfer Expenses, in the event of a
Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the Transfer Notice for a sales price equal to the Transfer Price, and shall notify Montecito and CHP of the same. Upon delivery and acceptance of the
ROFO Amount, CHP shall purchase Montecito’s Interest in accordance with the provisions of Section 12.3 of this 

  
 42 

 
Agreement. If the Transfer Price is rejected, CHP shall so notify Montecito (“Rejection Notice”) and Montecito shall be free to sell its Interest to any third party in accordance
with Section 12.2(b) of this Agreement. If the Transfer Price is challenged, then CHP may engage a third-party appraiser to appraise the Transfer Price and shall give notice to Montecito of the same (the “Challenge Notice”). In
the event of a dispute regarding such appraisal, the parties shall submit the dispute to binding arbitration, pursuant to Section 13.7 hereof, with CHP maintaining the right to purchase Montecito’s Interest at such time. The failure of CHP
to deliver an Acceptance Notice, Rejection Notice, or Challenge Notice within such period of time shall be deemed to be the delivery by CHP of a Rejection Notice. If CHP fails to deliver a Transfer Price Notice within the time period set forth
herein, Montecito shall be free to sell its Interest to any third party pursuant to the terms and conditions set forth in Section 11.2(b) below. 
 (b)        Subject to the restrictions of Section 9.1, Montecito shall at all times be free to negotiate with any prospective third party purchasers of its
Interest and, if no Acceptance Notice has been timely delivered to Montecito, then Montecito may sell all or a portion of its Interest to a bona fide third-party purchaser (the “Third Party Purchaser”) for an amount that is equal to
or greater than the ROFO Amount and upon other material terms no more favorable to such Third Party Purchaser than were the material terms offered by Montecito, provided that (i) such purchase price is payable in immediately available funds,
(ii) Montecito and the Third Party Purchaser enter into a contract of sale not later than ninety (90) days after the date the Rejection Notices were delivered or deemed delivered and (iii) Montecito and the Third Party Purchaser close
the Transfer at any time within one hundred twenty (120) days after the date the Rejection Notices were delivered or deemed delivered, on the terms and conditions set forth in Section 12.3 below. In such case, the Third Party Purchaser
shall become a Member hereunder; provided however, that with respect to the voting rights of the Third Party Purchaser, if less than 100% percent of the Interest of Montecito is transferred to a Third Party Purchaser, such rights will be exercised
by Montecito on behalf of the Third Party Purchaser as if Montecito retained 100% of its Interest. 

12.3        Closing. 

(a)        At the closing on (i) the date of the closing of the purchase by
CHP or the Third Party Purchaser, (as applicable, the “ROFO Recipient”), of Montecito’s Interests which is the subject of a the right of first offer in accordance with Section 12.2 above (the “ROFO Closing
Date”), or (ii) the Buy-Sell Closing Date in accordance with Section 12.1 above, (as the case may be, the “Buy-Sell Closing Date”) Montecito (on the ROFO Closing Date), or Buy-Sell Seller (on the Buy-Sell Closing
Date), respectively, (as the case may be, the “Seller”), shall execute and deliver to the ROFO Recipient, or Buy-Sell Purchaser, respectively (as the case may be, the “Purchaser”), an assignment of the Seller’s
Interest (or with respect to the ROFO Closing Date, such portion of such Seller’s Interest which is subject to the assignment) (which assignment shall warrant Seller’s ownership of the Interest being sold to be free and clear of all liens
and other encumbrances) and such other instruments as the Purchaser may reasonably require, to give it good and lien free title to all of the Seller’s right, title and interest in the Company, subject to the terms of this Agreement. If the
Purchaser has elected to have the Seller convey the Seller’s Interest to a designee or nominee of the Purchaser, the Company shall thereafter continue. In such event, the Purchaser and the Company shall indemnify the Seller against claims and
liabilities of the Company arising after the date of such conveyance. 

  
 43 

 (b)       On the Closing Date, if the
Purchaser is the remaining Member, then the Purchaser shall, at its option, either (i) obtain a full release of the Seller (or a partial release in the event the Seller continues to be a Member after the Closing Date in connection with the sale
of a partial Interest to the Third Party Purchaser) from all liability, direct or contingent, by all holders of all Company and/or Subsidiary debts, obligations or claims against the Seller for which the Seller is or may be personally liable with
respect to the period from and after the Closing Date, except for any debts, obligations or claims which are fully insured by a public liability insurer(s) reasonably acceptable to the Seller; or (ii) cause all such debts, obligations or claims
to be paid in full on the Closing Date. 
 (c)       In the event of a
contemplated transfer to take place pursuant to Section 12.1 or Section 12.2 of this Agreement, the Seller shall be entitled to receive distributions of available cash for the period ending at 11:59 p.m. of the day immediately preceding
the Closing Date. All provisions allocating profits, losses, gains, deductions and credits for tax purposes shall remain in effect through the Closing Date. 
 (d)       The Managing Member is hereby authorized to execute and deliver all documents, instruments and agreements deemed necessary or desirable by the Managing Member
in its reasonable discretion to consummate the sale of the applicable Interest on the terms required by this Agreement to a Third Party Purchaser. If any Member is required to execute any such documents, instruments or agreements, such Member shall
execute the same upon the request of the Managing Member so long as the same are on terms and conditions which are reasonable and customary and do not increase the liability of such Member in such Member’s reasonable discretion. 

(e)       If the Facility is damaged by fire or other casualty or if any Person
possessing the right of eminent domain shall give notice of an intention to take or acquire any part of the Facility or the underlying Property of such Facility, and such notice is given between the date of election or deemed election by the
Purchaser, and the Closing Date (if any), the following shall apply: 

(i)        If the Facility is not substantially damaged (which shall be deemed
to mean damage, the repair of which is reasonably estimated to cost no greater than $500,000.00), then the Purchaser (if any) shall be required to complete the transaction and the insurance proceeds or the relevant part thereof shall be retained by
the Company and the Seller (if any) shall not be entitled to any portion thereof and shall credit Purchaser for Seller’s pro rata share (based on the Seller’s Percentage Interest immediately prior to the Closing Date) of any deductible.

 (ii)       If the Facility is substantially damaged (which shall mean a
casualty the repair of which is reasonably estimated to cost more than $500,000.00), or if a taking of the Facility worth at least $500,000.00 shall occur, then the Purchaser shall have the option to either (a) accept the Facility in an
“as is” condition in which event any insurance or condemnation proceeds, settlements and awards or the relevant part thereof shall be retained by the Company and the Seller shall not be entitled to any portion thereof and shall credit
Purchaser for Seller’s pro rata share (based on the Seller’s Percentage Interest immediately prior to the Closing Date) of any deductible, or (b) cancel the purchase. 

  
 44 

 (iii)      From and after the determination
of the Closing Date, but prior to such Closing Date, provided that the purchase has not been canceled by the Purchaser pursuant to Section 12.3(e)(ii), the Company shall not settle any claim relating to a casualty that damages the Facility or a
taking or acquisition of the Facility without the prior consent of the Purchaser. 

(iv)      In the event that the purchase is canceled by the Purchaser pursuant to the
above provisions, this Agreement shall remain in effect and continue to be binding on the parties and either Member shall thereafter have the right to continue to exercise its respective rights under Section 12.1 and Section 12.2 above.

 12.4      Release from Guaranties.  As a condition to the
buyout of a Member pursuant to the foregoing Sections 12.1 and 12.2, such Member and all of its Affiliates shall be released from the obligation to guarantee any of the obligations of the Company or any of its Subsidiaries or Affiliates under any
financing. If either Member is the purchasing party, the purchasing Member shall, at its expense, secure the release from all lenders (without releasing any claim the Company may have against the applicable guarantor) of outstanding Affiliate
Guaranties executed by the applicable Montecito Guarantor or CHP Guarantor or their respective Affiliates (other than obligations accrued prior to the transfer under any customary recourse carve-out guarantees) and, to the extent required, obtain
the consent of all lenders to the buy-out of such Member (or cause the applicable loans to be repaid at closing). 
 12.5      Enforcement.   It is expressly agreed that the remedy at law for breach of the obligations of the Members set forth in this Article XII
is inadequate in view of (a) the complexities and uncertainties in measuring the actual damage to be sustained by reason of the failure of a Member to comply fully with such obligations, and (b) the uniqueness of the Company’s
business and the Member’s relationships. Accordingly, each of such obligations shall be, and is hereby expressly made, enforceable by a specific performance. 

12.6      Financing.   The terms and provisions of this Article XII
shall be subject to the terms and conditions of the Financing. 
 ARTICLE 13 

MISCELLANEOUS 
 13.1      Further Assurances.      Each party to this Agreement agrees to execute, acknowledge, deliver, file and record such further
certificates, amendments, instruments and documents, and to do all such other acts and things, as may be required by law or as, in the reasonable judgment of the Managing Member, may be necessary or advisable to carry out the intent and purpose of
this Agreement so long as such acts and things do not increase the obligations or diminish the rights of any of the Members. 
 13.2      Notices. 

(a)        Any and all notices, including any demands, consents, approvals,
offers, elections 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 others parties) 

  
 45 

 
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 mail,
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), or (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. 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.
Whenever under this Agreement a notice is required to be delivered on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of required delivery shall automatically be
extended to the next Business Day. All such notices shall be addressed as follows: 
  

			
	To CHP:	  	 c/o CNL Healthcare Properties, Inc.
 CNL Center at City Commons
 450 South Orange Ave.

Orlando, Florida 32801
 Attn.: Joseph T. Johnson,
SVP and CFO and
 Holly J. Greer, SVP and General Counsel
 Telecopy No.:   407-540- 2544
 Telephone No.: 407-540-7618 (Johnson)

407-540-7546 (Greer)

	  
 With a copy to:
	  	  
 Lowndes, Drosdick, Doster, Kantor & Reed, PA

215 North Eola Drive
 Orlando, Florida
32801
 Attn.:  Peter E. Reinert, Esq.
 Telecopy No.:  407-843-4444
 Telephone No.:  407-418-6291

	  
 To Montecito:
	  	  
 c/o Montecito Medical Property Company, LLC

6187 Carpinteria Avenue, Suite 300
 Carpinteria,
California 93013
 Attn: Paul Sandler

Telecopy No.:  805-456-8785
 Telephone
No.:  805-456-0668

  
 46 

			
	With a copy to:	  	 c/o Beavers/Rogers Law & Advisory Group, LLC
 500 Jesse Jewell Parkway, Suite 300
 Gainesville, GA 30501

Attn: William S. Rogers, Esq.
 Telecopy
No.:  678-928-5289
 Telephone No.:  678-928-5275

		  	  
 And:

 
 Berkshire Realty Ventures
 400 Madison Avenue, Suite 5A
 New York, New York 10017

Attn: Jason Grossman

		  	  
 The Berkshire Group

One Beacon Street, Suite 1500
 Boston,
Massachusetts 02108
 Attn: Mary Beth Bloom, Esq.

		  	  
 Jones Day

222 East 41st Street
 New York, New York 10017
 Attn: Steven Koppel, Esq.

 (b)       Notices, demands, requests, consents,
approvals, offers, elections and other communications given by an attorney named above on behalf of its client and sent to the other party to this Agreement in the manner set forth in this Section shall have the same effect as if given by a party to
this Agreement. Notwithstanding anything to the contrary contained in this Agreement, it is understood that notices to each party’s outside counsel shall be given as a courtesy only and failure to provide such notice shall not in any way affect
or diminish the validity of the notice given to any party under this Agreement. By notice given as provided in this Section, the parties to this Agreement and their respective successors and assigns shall have the right from time to time and at any
time during the Term to change their respective addresses effective five (5) Business Days after the date of receipt by the other parties of such notice and each party shall have the right to specify as its address any other address within the
United States of America. 
 13.3      Headings and
Captions.   All headings and captions contained in this Agreement and the table of contents hereto are inserted for convenience only and shall not be deemed a part of this Agreement. 

13.4      Variance of Pronouns.  All pronouns and all variations thereof
shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person or entity may require. 
 13.5      Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which,
when taken together, shall constitute 

  
 47 

 
one Agreement. The submission of a signature page transmitted by facsimile (or similar electronic transmission facility) shall be considered as an “original” signature page for purposes
of this Agreement so long as the original signature page is thereafter transmitted by mail or by other delivery service and the original signature page is substituted for the facsimile signature page in the original and duplicate originals of this
Agreement. 
 13.6      Governing Law; Litigation, Jurisdiction and Waiver of
Jury Trial. 
 (a)        This Agreement will be governed by, and
construed in accordance with, the laws of the State of Delaware without regard to conflict of laws principles. 

(b)        For the purposes of any suit, action or proceeding involving this
Agreement, the parties each hereby expressly and irrevocably submits to the jurisdiction of all federal and state courts sitting in the State of Florida which courts shall have jurisdiction over any such suit, action or proceeding commenced by any
party. The parties consent to service of process, wherever made, by certified mail return receipt requested, personal service or any other method permitted by applicable law and the rules of the applicable court. In furtherance of such agreement,
the parties agree, upon the request of any party, to discontinue (or agree to the discontinuance of) any such suit, action or proceeding pending in any other jurisdiction. 

(c)        Each party hereby irrevocably waives any objection that either party
may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any federal or state court sitting in the State of Florida and hereby further irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 

(d)        If for any reason, the state and federal courts sitting in the State
of Florida refuse to exercise jurisdiction over the proceeding or any party, then litigation as permitted herein may be brought in any court of competent jurisdiction in the United States of America. 

(e)        EACH PARTY HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY
JURY IN ANY ACTION BROUGHT ON, UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH, THE FACILITIES, OR ANY CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR
TO ANY OF THE FOREGOING. 
 13.7      Arbitration. 

(a)        Any dispute with respect to the matters described in Sections 3.5,
5.5, and 12.2 under this Agreement for which arbitration in accordance with Section 13.7 is expressly provided shall be determined by binding arbitration proceeding (the “Arbitration Proceeding”) administered by the American
Arbitration Association (“AAA”) under its Commercial Arbitration Rules and Expedited Procedures, in effect at the time of the demand for arbitration, provided, however, that to the extent any provision of this Section modifies, adds
to, or is inconsistent with any provisions of those rules and procedures, the provisions of this Section shall control. Arbitration will be conducted before a single arbitrator in Orlando, FL (the “Venue”). The parties hereby
acknowledge and agree that the party which did not initiate the 

  
 48 

 
Arbitration Proceeding shall have the right to elect the Venue in its sole discretion, which shall be binding on both parties. The choice of law provisions set forth in Section 13.6 shall
apply in any such Arbitration Proceeding. Any dispute, disagreement, or controversy arising out of or relating to this Agreement for which arbitration is not expressly provided as the means of resolution may be resolved by litigation as provided in
Section 13.6 or by other lawful means. 
 (b)        The party
desiring arbitration shall provide written notice in accordance with the requirements of Section 13.2 to the other party (the “Arbitration Notice”) indicating (i) the matter in controversy and (ii) the name, contact
information and professional resume of the proposed arbitrator meeting the requirements for a qualified and independent arbitrator set forth in Section 13.7(c) (“Initial Arbitrator”) to arbitrate such matter in controversy. If
the party receiving the Arbitration Notice rejects the Initial Arbitrator set forth in the Arbitration Notice it shall object by written notice in accordance with the requirements of Section 13.2 (“Objection Notice”) delivered
to the other party within seven (7) Business Days of the receipt of the Arbitration Notice. The Objection Notice shall contain the name, contact information and professional resume of a different arbitrator meeting the requirements for a
qualified and independent arbitrator set forth in Section 13.7(c) (“Secondary Arbitrator”) to arbitrate the matter in controversy set forth in the Arbitration Notice. If the party receiving the Objection Notice rejects the
Secondary Arbitrator, it shall object in writing (“Secondary Objection Notice”) to the other party within seven (7) Business Days after the receipt of the Objection Notice. If neither the Initial Arbitrator nor the Secondary
Arbitrator is accepted by the parties, the party which delivered the Arbitration Notice shall instruct the Initial Arbitrator and the Secondary Arbitrator to agree, within five (5) Business Days after receipt of the Secondary Objection Notice,
upon an arbitrator (“Appointed Arbitrator”) meeting the requirements for a qualified and independent arbitrator set forth in Section 13.7(c). If they agree upon an Appointed Arbitrator who is prepared to act as the Appointed
Arbitrator, the Initial Arbitrator and Secondary Arbitrator shall deliver written notice of the name, contact information and professional resume of the Appointed Arbitrator to each party simultaneously. The appointment of the Appointed Arbitrator
shall be a final decision, which shall not be subject to objection by either party, unless either party to this Agreement within five (5) Business Days after such selection of an Appointed Arbitrator, gives written notice in accordance with the
requirements of Section 13.2 of this Agreement to the other party, in writing, that such Appointed Arbitrator fails to meet the requirements for a qualified and independent arbitrator set forth in Section 13.7(c) and provides specific
information in such written notice as to the reasons why such failure exists. 

(c)        In the event the Initial Arbitrator and the Secondary Arbitrator
cannot agree on an Appointed Arbitrator or if such appointed Arbitrator is unwilling to act as the Appointed Arbitrator or if either party objects to the Appointed Arbitrator within five (5) Business Days after the selection of such Appointed
Arbitrator, as permitted in this Section 13.7, then either party may petition the AAA (or any successor body of similar function) to appoint an arbitrator within five (5) Business Days of such petition using the following criteria: such
arbitrator shall be (i) with respect to physical property matters, a licensed professional engineer or registered architect having at least ten (10) years’ experience in the design or construction of medical office facilities similar
to the Facility, (ii) with respect to financial matters, a partner in a “Big Four Accounting Firm” with at least ten (10) years’ experience with the type of matter in dispute, (iii) with respect to property management
issues, an individual who shall have had at least ten (10) years’ experience managing similar medical office facilities in the market place for 

  
 49 

 
the matter in dispute and (iv) be neutral and shall have had no prior notice, information or discussions concerning such controversy and shall not be employed by or associated with either
party or any Affiliate of either of them, or any of their respective agents or affiliates at such time or for the previous ten (10) years. If the dispute involves more than one type of matter, then the Appointed Arbitrator may be (v) an
individual with expertise in any one of the types of matters in dispute, or (vi) a retired judge. 

(d)        The Arbitration Proceedings shall commence fifteen (15) Business
Days after the engagement or appointment of the appropriate arbitrator pursuant to this Section 13.7. The arbitrator shall make a determination within ten (10) Business Days after conclusion of the Arbitration Proceeding. 

(e)        The costs and expenses of an Arbitration Proceeding including the
administrative fees and costs, expert fees and the arbitrator’s fees and costs, shall be shared equally by CHP and Montecito, and each party shall bear its own counsel, expert, administrative fees and other professional fees and expenses with
respect to such Arbitration Proceeding; provided, however, that the Appointed Arbitrator may (but shall not be required to), in the exercise of his/her best judgment, assess one party for a part or all of the costs of the other party, including,
without limitation, the costs of the Arbitration Proceeding. 

(f)        Any arbitrator’s final decision and award shall be in writing,
shall be binding on the parties and shall be non-appealable, and counterpart copies thereof shall be delivered to both parties. A judgment or order based upon such award may be entered in any court of competent jurisdiction. All actions necessary to
implement the decision of the arbitrator shall be undertaken as soon as possible, but in no event later than three (3) Business Days after the rendering of such decision. 

13.8      Partition.    The Members hereby agree that no Member
nor any successor-in-interest to any Member shall have the right to have the property of the Company partitioned, or to file a complaint or institute any proceeding at law or in equity to have the property of the Company partitioned, and each
Member, on behalf of himself, his successors, representatives, heirs and assigns, hereby waives any such right. 

13.9      Compliance with ERISA and State Statutes on Governmental Plans.Anything
else in this Agreement contained to the contrary notwithstanding, CHP shall have up to fifteen (15) days following a purchase or other acquisition by a Benefit Plan Investor to undo any such purchase or other acquisition that results in a
twenty-five percent (25%) or more participation in the Company by such Benefit Plan Investor.

(b)        In addition, CHP will certify at least annually, that the Company
shall operate as a real estate operating company (a “REOC”), as that term is defined in 29 C.F.R. Section 2510.3-101(e). Moreover, CHP will certify, at least annually, that the Company has and exercises direct contractual
rights to substantially participate in or substantially influence the conduct of any of the REOC’s management. 
 (c)        Montecito shall indemnify CHP and defend and hold CHP harmless from and against all loss, cost, damage and expense that CHP may incur, directly or
indirectly, as a 

  
 50 

 
result of a (i) default by Montecito under this Section 13.9, (ii) a breach of a representation or warranty given by Montecito under this Section 13.9, or (iii) any
material misstatement or omission in a certification by Montecito or proposed transferee of Montecito which is given to CHP pursuant to this Section 13.9. The liability, excise taxes, penalties, interest, loss, cost, damage and expense
will include attorney’s fees and costs incurred in the investigation, defense and settlement of claims and losses incurred in: 
 (i)        correcting any Plan Violation, 
 (ii)       the sale of a prohibited Company interest, or 
 (iii)      obtaining any individual exemption for a Plan Violation that may be required, in CHP’s sole discretion. This indemnity shall survive (x) the sale of
the Facility or of Montecito’s Interest and (y) termination of this Agreement. 

(d)        The Company will not enter into any agreements, or suffer any
conditions, that CHP determines, in its reasonable judgment, would result in a Plan Violation. At Montecito’s request, CHP shall deliver a written notice of each such determination to such Member together with an explanation of the reasons
for the determination. 
 (e)        Upon Montecito’s reasonable
request, CHP agrees to cooperate with Montecito’s efforts to discover and correct Plan Violations. 

13.10   Invalidity.   Every provision of this Agreement is intended to be severable.
The invalidity and unenforceability of any particular provision of this Agreement in any jurisdiction shall not affect the other provisions of this Agreement, and this Agreement shall be construed in all respects as if such invalid or unenforceable
provision were omitted. 
 13.11   Successors and Assigns.  This Agreement shall
be binding upon the parties hereto and their respective successors, executors, administrators, legal representatives, heirs and legal assigns and shall inure to the benefit of the parties hereto and, except as otherwise provided in this Agreement,
their respective successors, executors, administrators, legal representatives, heirs and legal assigns. 

13.12   Entire Agreement.   This Agreement supersedes all prior agreements among the
parties with respect to the subject matter of this Agreement and contains the entire Agreement among the parties with respect to such subject matter. 
 13.13   Waivers.  No waiver of any provision of this Agreement by any party hereto shall be deemed a waiver by any other party nor shall any such waiver by any party be
deemed a continuing waiver of any matter by such party. No amendment, modification, supplement, discharge or waiver of this Agreement shall require the consent of any Person not a party to this Agreement. 

13.14   No Brokers.    Except as disclosed in the Disclosure Statement to the
Transfer Agreement, each of the Members hereto represents and warrants to each other that there are no brokerage commissions or finders’ fees (or any basis therefor) resulting from any action taken by such Member or any Person acting or
purporting to act on their behalf upon entering into this 

  
 51 

 
Agreement. Each Member agrees to defend, indemnify and hold harmless each other Member for all costs, damages or other expenses, including, without limitation, reasonable attorneys’ fees and
expenses, arising out of any misrepresentation made in this Section 13.13. 

13.15   Confidentiality.   Each Member agrees not to disclose or permit the
disclosure of any of the terms of this Agreement or of any other confidential, non-public or proprietary information relating to the Company Assets or business (collectively, “Confidential Information”), provided that such
disclosure may be made (a) to any Affiliate or other Person who is a partner, member, officer, director or employee of such Member or Affiliate or counsel to or financial advisors or accountants of such Member solely for their use on behalf of
such Member and on a need-to-know basis, provided that such Persons are notified of the Member’s confidentiality obligations pursuant to this Agreement, (b) with the consent of the other Members, (c) if required by governmental law,
rule or regulation, in which event the disclosing party shall, unless prohibited by law, immediately notify the other of the terms and circumstances of the disclosure, and cooperate with any efforts to prevent or limit disclosure, (d) subject
to the next paragraph, pursuant to a subpoena or order issued by a court, arbitrator or governmental body, agency or official or (e) to any lender providing financing to the Company. 

In the event that a Member shall receive a request to disclose any Confidential Information under a subpoena or order
such Member shall (x) promptly notify the other Members thereof, (y) consult with the other Members on the advisability of taking steps to resist or narrow such request and (z) if disclosure is required or deemed advisable, cooperate
with any of the other Members in any attempt it may make to obtain an order or other assurance that confidential treatment will be accorded the Confidential Information that is disclosed. 

13.16   No Third Party Beneficiaries.   This Agreement is not intended and shall not
be construed as granting any rights, benefits or privileges to any Person not a party to this Agreement or an Indemnified Person. 
 13.17   Power of Attorney.   Subject to Section 3.5, each of the undersigned does hereby constitute and appoint Managing Member as its true and lawful
representative and attorney-in-fact, in its name, place, and stead to make, execute, sign, and file any amendment to the Certificate of Formation of the Company required because of an amendment to this Agreement or in order to effectuate any change
in the membership of the Company, and all such other instruments, documents, and certificates which may from time to time be required by the laws of the United States of America, the State of Delaware, or any other state in which the Company shall
determine to do business, or any political subdivision or agency thereof, to effectuate, implement, and continue the valid and subsisting existence of the Company, or in connection with any state tax filings of the Company. The power of attorney
granted hereby is coupled with an interest and shall (a) continue in full force and effect notwithstanding the subsequent death, incapacity, dissolution, termination, or Bankruptcy of the Member granting the same or the Transfer of all or any
portion of such Member’s Interest, and (b) extend to such Member’s successors, assigns, and legal representatives. 
 13.18   Invalidity.  The provisions of this Section 13.17 were negotiated in good faith by the parties to this Agreement, and the parties agree that such provisions
are reasonable and are not more restrictive than necessary to protect the legitimate interests of the parties hereto. It is 

  
 52 

 
the intention of the parties to this Agreement that if any of the restrictions or covenants contained herein is held to be for a length of time that is not permitted by applicable law, or is any
way construed to be too broad or to any extent invalid, such provision shall not be construed to be null, void and of no effect, but to the extent such provision would be valid or enforceable under applicable law, a court of competent jurisdiction
shall construe and interpret or reform such provision to provide for a restriction or covenant having the maximum time period and other provisions (not greater than those contained herein) as shall be valid and enforceable under applicable law.

 13.19   Construction of Documents.  The parties acknowledge that they were
represented by separate and independent counsel in connection with the review, negotiation and drafting of this Agreement and that this Agreement shall not be subject to the principle of construing its meaning against the drafter. 

[SIGNATURE PAGES FOLLOW] 

  
 53 

 IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby,
have duly executed this Limited Liability Company Agreement effective as of the Effective Date. 
  

 

			
	MEMBERS:
	
	 MMAC BERKSHIRE CLAREMONT LLC, a
 Delaware limited liability company

	  
  
 By:
	 	   /s/ Edward W. Conk

		 	Name:  Edward W. Conk
		 	Title:  Chief Executive Officer

  
  

 
  
  

  
 Signature Page
to JV Agreement 

 
			
	 CHP CLAREMONT HOLDING, LLC, a
 Delaware limited liability company

	  
  
 By:      
	 	   /s/ Joshua J. Taube

		 	 Name:  Joshua J. Taube

		 	 Title:  Vice President

  
  
  

 
  
  

  
 Signature Page
to JV Agreement 

 Schedule 1.1 
 Description of Facility 
 [Intentionally Omitted] 

 
 Schedule 3.5 

Major Decisions 
 [Intentionally Omitted] 
  
 Schedule 6.1 
 Percentage Interests of the Members 

[Intentionally Omitted] 
  

Exhibit A 

Annual Budget 

[Intentionally Omitted] 
  

Exhibit B 

Indemnification and Contribution Agreement 
 [Intentionally Omitted]Sale Agreement

 Exhibit 10.3 
 SALE AGREEMENT 
 [Claremont Medical Plaza, 1601 Monte Vista Drive, Claremont CA] 

This Sale Agreement (“Agreement”) made and entered into as of November 9, 2012 (“Effective
Date”), by and among Claremont Venture I, L.P., a California limited partnership (“Seller”) and MMIC Acquisition Corporation, a Florida corporation (“Buyer”). For good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby the parties hereto agree as follows: 
 1.          Definitions.    In addition to other words and terms defined elsewhere in this Agreement, as used herein the following words
and terms shall have the following meanings, respectively, unless the context hereof otherwise clearly requires: 

Broker - CBRE 
 Cancellation Procedures – Where invoked in this Agreement: (i) Buyer shall be entitled to a return of the Deposit; (ii) the parties shall split equally any remaining, escrow and title
cancellation fees; and (iii) all obligations under this Agreement shall terminate except for the parties’ obligations under Sections 5.1.3, 5.3 and 10, and any Seller liability where the Cancellation Procedures arose from a Seller default.

 Closing - the consummation of the purchase of the Property in accordance with the terms of this Agreement.

 Closing Date – January 8, 2013. 

Contingency Time – 8:00 p.m. Pacific time on December 12, 2012. 

County – Los Angeles County, California. 

Deposit - (i) $100,000 (“First Deposit”), to be delivered to Escrow Holder within 2 business days after
mutual execution and delivery of this Agreement; plus (ii) $300,000, to be delivered to Escrow Holder within 2 business days after the Contingency Time (“Second Deposit”); plus (iii) all interest earned thereon while in
Escrow. 
 Escrow Holder – First American Title Insurance Company. 

Hazardous Materials - any substance, chemical, waste or material that is or becomes regulated by any federal, state or local
governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness or reactivity, Including asbestos or asbestos containing material, toxic mold and fungus, the group of compounds known as
polychlorinated biphenyls, flammable explosives, oil, petroleum or any refined petroleum product. 
 Improvements -
the building and other improvements located on the Land, Including all fixtures, furniture, equipment, appliances and other types and items of personal property affixed thereto, located thereon and used in connection with the operation of the
Property, and owned by Seller, but excluding any personal property owned by any tenants under the Leases.. 

  

					
	Stonecreek\Claremont\PSA-10	  	1	  	

 Exhibit 10.3 

 
 Including (or variations thereof) - including,
but without limitation. 
 Indemnify - indemnify, defend (with counsel reasonably acceptable to indemnitee),
protect and hold harmless. 
 Land - those certain parcels of land described in the form Deed attached hereto as
Exhibit A, together with all of the tenements, hereditaments and appurtenances belonging to or in any way appertaining to such real property, and all of Seller’s right, title and interest in and to (i) any and all real property lying in
the bed of any street, road or avenue, open or proposed, in front of or adjoining such real property to the center line thereof, (ii) any strips and gores of land adjacent to, abutting or used in connection with such real property, and
(iii) any easements and rights appurtenant to such real property. 
 Lease - each lease and amendment
delivered pursuant to Section 5.1.1 or executed after the Effective Date in accordance with Section 7.1. 

Permits - federal, state and local governmental consents, waivers, authorizations, licenses, approvals and permits required
for the occupancy, management, leasing, maintenance and operation of the Land and Improvements. 
 Permitted
Exceptions - (1) current taxes and assessments not yet due and payable; (2) all matters in the PTR and any surveys delivered by Seller pursuant to Section 5.1.1 or obtained by Buyer or in any PTR supplements delivered to Buyer prior to
the Contingency Time; (3) the possessory rights of tenants, as tenants only without any rights to purchase the Property; (4) any exception to title caused by Buyer or expressly approved in writing by Buyer; (5) any matters of record
recorded prior to the effective date of the PTR and set forth in the PTR; (6) any matters disclosed in any supplements or amendments to the PTR delivered to Buyer prior to the Contingency Time; and (7) any matters which Buyer could have
discovered on or before the Contingency Time by a proper survey. Notwithstanding anything to the contrary, Permitted Exceptions shall not include any Removed Exceptions Nothing contained herein shall prohibit or limit Buyer in any way from objecting
to any or all of such Permitted Exceptions pursuant to Sections 4, 5.7(b) and 5.7(d). 
 Possession – means a
document either (i) in the actual, physical possession of Seller or its employees, or (ii) within the possession of an agent to or consultant of Seller and who has a contractual obligation to deliver such document to Seller upon demand or
which Seller is legally entitled to obtain from a non-governmental third party without expense. 
 Property - the
Land and the Improvements, Permits, and the interest of Seller in the Leases. 
 Property Conditions - Any matter
whatsoever relating to the Property or this Agreement or of concern to Buyer, Including: title; the environmental condition of the Property (Including the presence or absence of Hazardous Materials in, on or about the Property and Including: claims,
liabilities and contribution, reimbursement and indemnity rights relating to the presence, discovery or removal of any Hazardous Materials in, at, about or under any Property, or for, connected with or arising out of any and all claims or causes of
action based thereon 

  

					
	Stonecreek\Claremont\PSA-10	  	2	  	

 Exhibit 10.3 

 
 
Including any claims made under CERCLA or other similar environmental laws, whether state or Federal, providing for contribution); water, soil, pest and geological conditions of the Property; the
financial condition of the Property; the suitability of the Property or any and all activities and/or uses which may be conducted thereon; the compliance of or by the Property with any and all laws, rules, ordinances or regulations of any applicable
governmental authority or body (Including environmental, zoning, building codes, and the status of any development or use rights respecting the Property); the habitability, merchantability, marketability, profitability or fitness for a particular
purpose of the Property; or the physical condition of the Improvements, Including construction defects, deferred maintenance or other adverse physical conditions or defects. 

Purchase Price - Nineteen Million Two Hundred Fifty Thousand Dollars ($19,250,000), subject to increase to up to $19,650,000
per Section 7.1.1. 
 PTR - a title commitment for the Property issued by Escrow Holder, including the best
available copies of underlying documents, agreeing to issue to Buyer an Owner’s ALTA extended coverage (subject to a survey exception unless Buyer delivers to Escrow Holder an acceptable survey) title insurance policy in the total amount of the
Purchase Price insuring fee simple title to the Property. 
 Removed Exceptions - (1) any mortgages, deeds of
trust, mechanics liens and other voluntary monetary liens other than the lien for taxes not yet due and payable; (2) any lien for assessments under any CC&Rs or other document of record other than those assessments which are not yet due and
payable and which shall be prorated at Closing, as applicable; (3) any Title Defects which Seller elects to cure per Sections 4, 5.7(b) or 5.7(d); and (4) any recorded judgment liens. 

Reserved Matters – Claims by Buyer against Seller for fraud or for breach of any covenants, representations or
warranties of Seller expressly set forth in this Agreement and not waived or terminated pursuant to Sections 5.5, 5.7.1, 11.2 or 13.10. 
 Seller’s Knowledge - the actual knowledge of Clayton M. Corwin as of the date the representation is made and without any duty of discovery, investigation, inquiry or inspection; notwithstanding the
reference to such person, such person shall have no liability to Buyer hereunder or otherwise. Such person, notwithstanding being named above, is not a party to, and has no personal liability under, this Agreement. 

2.          Purchase and Sale of the
Property.    Subject to the terms, provisions and conditions set forth herein, Seller hereby agrees to sell the Property to Buyer, and Buyer hereby agrees to purchase the Property from Seller. 

3.          Purchase Price for Property.    The
Purchase Price for the Property shall be payable in the following manner: 

3.1        Deposit. 

3.1.1     Buyer shall deliver each portion of the Deposit to Escrow Holder when required under the
“Deposit” definition. If any portion of the Deposit is not paid when required and 

  

					
	Stonecreek\Claremont\PSA-10	  	3	  	

 Exhibit 10.3 

 
 
remains unpaid three (3) days after receipt (or deemed receipt per Section 12) by Buyer of written notice of such default, then Buyer shall be in material default and Seller may
terminate this Agreement effective upon written notice to Buyer, whereupon the liquidated damages provisions of Section 11.1 shall apply. 
 3.1.2       If the Agreement is terminated pursuant to Section 5.5 before the Contingency Time, the Deposit (or so much thereof as has been actually deposited) shall be
immediately returned to Buyer without objection by Seller. After the Contingency Time, the Deposit (or so much thereof as has been actually deposited) shall be either: (i) credited against the Purchase Price at Closing; or (i) retained by
Seller as liquidated damages pursuant to Section 11.1; or (iii) returned to Buyer if this Agreement is terminated prior to Closing pursuant to Section 5.7.1 or otherwise as may be set forth in this Agreement. 

3.2        Balance of Purchase Price. The balance of the Purchase Price, increased
or decreased by any closing costs and prorations allocable to Buyer as provided below, shall be paid in full by a wire transfer by Buyer to Escrow Holder in immediately available federal funds, when and as provided in Section 6.2.1. 

4.          Title Review; Survey.    Escrow Holder is
hereby instructed to prepare and deliver the PTR to Buyer with a copy to Seller within seven (7) business days of the Effective Date. Buyer may cause a new survey of the Property to be prepared at its own expense by a registered land surveyor
duly licensed in the State of California (the “Survey”). Buyer shall have the right to disapprove any aspect of title and Survey (including, without limitation, exceptions appearing the in the PTR or Survey) before the Contingency
Time pursuant to this Section 4. Before the Contingency Time, Buyer may notify Seller in writing of any defects or objections to the title appearing in the PTR (including any PTR Schedule B-1 requirements which Buyer wishes to require Seller to
satisfy) or the Survey (“Title Defects”), provided that Buyer need not notify Seller of Removed Exceptions, and provided that Buyer rights shall include the right to object to any Permitted Exceptions. Any failure by Buyer to
provide such notice shall be deemed Buyer’s approval of the PTR and Survey. No later than three (3) days after receipt of Buyer’s notice of Title Defects, Seller shall provide written notice to Buyer of those Title Defects which
Seller elects in its sole discretion to cure (which shall become thereby additional Removed Exceptions); provided that if Seller fails or elects not to deliver such written notice by the earlier of such 3 day period or the Contingency Time, then
Seller shall be deemed to have elected not cure any such Title Defects. If Seller elects not to cure any Title Defects, or is deemed to have elected not to cure any Title Defects, Buyer shall have the absolute right to terminate this Agreement per
Section 5.5. 
 5.          Inspection and Contingencies.

 5.1        Due Diligence Documents. 

5.1.1     Specific Deliveries.   Within two (2) business days after the opening
of Escrow, Seller shall deliver to Buyer copies of the following documents (“Due Diligence Documents”): 
  

	 	(1)	 The most recent survey of the Property in Seller’s Possession (“Old Survey”). 

 

	 	(2)	 All written environmental, engineering, seismic, soils and other physical reports commissioned by Seller or otherwise, pertaining to the Property and in
Seller’s Possession. 

  

					
	Stonecreek\Claremont\PSA-10	  	4	  	

 Exhibit 10.3 

 

	 	(3)	 All Leases currently in effect. 

  

	 	(4)	 The 2009, 2010, 2011 and (to be delivered upon completion around mid November) year to date through October 31, 2012 operating statements of Seller for
the Property in such form as is customarily maintained by Seller. 

  

	 	(5)	 All contracts relating to the maintenance and operation of the Property (“Service Contracts”); excluding, however, any property management
contracts with affiliates of Seller, any insurance policies and any sale or leasing brokerage listing agreements, none of which will be assigned to Buyer at the Closing. 

 

	 	(6)	 2010, 2011-2012 tax bills. 

  

	 	(7)	 The last four months’ rent rolls on the current form used by Seller. 

 

	 	(8)	 Copies of utility bills for the current month. 

  

	 	(9)	 Insurance claim loss history for the last 3 years. 

  

	 	(10)	 Certificates of Occupancy, or governmental equivalent, for the Property and all Tenant spaces, in Seller’s Possession. 

 

	 	(11)	 Floor plans, site plan and unit location for the Property, in Seller’s Possession. 

 

	 	(12)	 Any NHD (defined in Section 5.4) in Seller’s Possession. 

5.1.2     Other Records.   In addition to the above documents, on one
(1) business day advance notice from Buyer, Seller shall, to the extent in Seller’s Possession, provide access to all of Seller’s books and records relating exclusively to the Property (but excluding any privileged information, work
product, marketing studies, appraisals and information relating to Seller itself), to be inspected and copied by the Buyer at the offices of the property manager during regular business hours, Including tenant lease correspondence and files.

 5.1.3     Return of Documents.   If this Agreement is terminated prior
to Closing for any reason, then promptly following such termination, Buyer shall return to Seller, within five (5) business days after termination: (i) all original Due Diligence Documents and copies made by Buyer or transferees thereof
from Buyer; and (ii) copies of all third party reports and studies relating to the Property and received by Buyer, but without any representation or warranty by Buyer. 

5.2         Inspections.      Until Closing,
Buyer, through its agents, employees and independent contractors (“Buyer’s Agents”), has the right to enter the Land and Improvements, for the purpose of inspecting the same and performing, at its sole cost and expense,
environmental, engineering and other inspection or tests thereon as Buyer deems necessary in its sole discretion. Buyer agrees to provide Seller with at least 24 hours’ notice prior to 

  

					
	Stonecreek\Claremont\PSA-10	  	5	  	

 Exhibit 10.3 

 
 
performing any such inspections or tests.. Buyer shall have no right to perform any invasive testing or borings without Seller’s prior written consent which may be withheld in Seller’s
sole and absolute discretion. Seller shall have the right to have one or more of its agents or representatives accompany Buyer or Buyer’s Agents at all times while Buyer or Buyer’s Agents are on the Property. As a condition to any entry,
Buyer shall provide Seller with sufficient evidence to show that Buyer and Buyer’s Agents, who are to enter upon the Property, are adequately covered by a general commercial liability insurance policy insuring against any and all liability
arising out of Buyer’s or Buyer’s Agents’ entry upon and Inspection of the Property, Including any loss or damage to the Property, with coverage in the amount of not less than $1,000,000 per occurrence. Such insurance shall name
Seller as an additional insured. 

5.3        Indemnity.      Buyer Indemnifies Seller,
and its employees, agents and consultants, against any loss, damage or liability caused by Buyer or its employees or agents solely arising or connected with said inspections and/or testing by Buyer’s Agents, Including any mechanics’ or
materialmen’s liens, attorneys’ fees and court costs incurred in connection with the defense of said claims, except for those matters which are merely discovered by Buyer during such inspections. 

5.4        Natural Hazards Disclosure.   Buyer waives receipt and
review of a Natural Hazards Disclosure for the Property (“NHD”) in connection with the following California Code Sections: Government Code Sections 8589.4 (Dam Failure Inundation Areas); 8589.3 (Special Flood Hazard Area);
Government Code Sections 51183.4, 51183.5 (Fire Hazard Severity Zone); Public Resources Code Section 2621.9 (Earthquake Fault Zone); Public Resources Code Section 2694 (Seismic Hazard Zone); and Public Resources Code Section 4136
(Wildland Area); and California Civil Code Section 1102.3. 

5.5        Contingency Time Disapproval.    Buyer may terminate
this Agreement for no reason or for any reason (Including as a result of Buyer’s review and investigations under Sections 4, 5.1 or 5.2 or because Buyer disapproves Exhibits E or F) by delivery of written notice of such termination on or before
the Contingency Time. If Buyer fails, or elects not, to terminate this Agreement by the Contingency Time, then upon the Contingency Time, all of the conditions in Sections 4, 5.1 and 5.2, and Buyer’s right to terminate per this
Section 5.5, shall be deemed waived and shall terminate. If Buyer terminates this Agreement by the Contingency Time pursuant to this Section, the Cancellation Procedures shall apply. 

5.6        Omitted. 

5.7        Buyer Closing Conditions.    The following are
conditions to Closing for Buyer’s benefit, unless they have been waived by Buyer: 

(a)         Default.   As a Buyer Closing condition, Seller
shall not be in material default of any Seller pre-Closing covenant or any Section 8 representation and warranty. 

(b)         Survey.   Provided Buyer orders a Survey within five
(5) calendar days after the Effective Date but is unable to receive such Survey by the Contingency Time, then if Buyer thereafter receives the Survey and it discloses additional title exceptions not disclosed in the PTR or the Old Survey
("Survey Exception"), then Buyer may disapprove any Survey Exception by written notice to Seller within five (5) business days after receipt of the Survey 

  

					
	Stonecreek\Claremont\PSA-10	  	6	  	

 Exhibit 10.3 

 
 
("Survey Notice"); provided that Buyer's failure to timely object shall be deemed Buyer's approval of such Survey Exceptions. Upon receipt of a timely Survey Notice, Seller shall within
three (3) business days either (i) covenant to remove such Survey Exception by Closing; or (ii) elect not to do so; provided that Seller's failure to timely object shall be deemed Seller's election under subsection (ii). If Seller
elects not to remove a Survey Exception, then Buyer may terminate this Agreement within three (3) business days of Seller's election or deemed election of Subsection (ii), in which case Section 5.7.1 shall apply, provided that if Buyer
fails to timely terminate then the Survey Exception shall be deemed a Permitted Exception. 

(c)         Title Policy.  As a Buyer Closing condition, Escrow
Holder shall be committed to issue at the Closing with respect to the Property an original 2006 ALTA extended coverage (with a survey exception unless Buyer delivers to Escrow Holder an acceptable Survey) owner’s policy of title insurance, in
the amount of the Purchase Price, subject to no exceptions other than the Permitted Exceptions. 

(d)         PTR Supplements.    If after the Contingency
Time Escrow Holder delivers any supplement to the PTR disclosing additional title exceptions first arising after the effective date of the PTR ("New Exception"), then Buyer may disapprove any New Exception by written notice to Seller within
five (5) business days after receipt of the supplemental report ("Additional PTR Notice"); provided that Buyer's failure to timely object shall be deemed Buyer's approval thereof. Upon receipt of a timely Additional PTR Notice, Seller
shall within three (3) business days either (i) covenant to remove such New Exception by Closing; or (ii) elect not to do so; provided that Seller's failure to timely object shall be deemed Seller's election under subsection (ii). If
Seller elects not to remove a New Exception, then Buyer may terminate this Agreement within three (3) business days of Seller's election or deemed election of Subsection (ii), in which case Section 5.7.1 shall apply, provided that if Buyer
fails to timely terminate then the New Exception shall be deemed a Permitted Exception. 

(e)         Condemnation.    As a Buyer Closing condition,
Buyer shall not have received notice after the Contingency Time of a pending or threatened action, suit or proceeding to condemn or take all or any part of the Property under the power of eminent domain (“Condemnation”) either:
(a) which substantially impairs access to the Improvements; or (b) results in the termination of any Leases in the Property. Seller shall promptly notify Buyer of any pending or threatened in writing Condemnation which Seller discovers
after the Effective Date. If a Condemnation occurs after the Effective Date and prior to Closing but Buyer nonetheless waives this condition, then upon the Closing, Seller shall deliver to Buyer all Condemnation awards received and assign the right
to Buyer to any future Condemnation awards. Notwithstanding any Condemnation, there shall be no reduction in the Purchase Price. 
 (f)         Casualty.  Seller assumes all risk and liability, damage to or injury occurring to the Property and/or Improvements by fire, storm, accident
or any other casualty or cause until the Closing has been consummated. If the Property and/or Improvements or any part thereof, suffers any damages prior to the Closing from fire or other casualty, Seller shall promptly notify Buyer of such damage.
If such damage is not Material, then upon Closing the proceeds of all insurance covering such damage (less the portion used to repair and less any portion retained by Seller’s lender) and post-closing rent loss insurance shall be assigned by
Seller to Buyer at Closing and the Purchase Price shall be reduced by the amount of any deductible and any insurance proceeds retained by Seller’s lender. If such damage is Material, then Buyer shall

  

					
	Stonecreek\Claremont\PSA-10	  	7	  	

 Exhibit 10.3 

 
 
have the option to: (x) terminate this Agreement whereupon the Deposit shall be returned to Buyer and the Cancellation Procedures shall apply; or (y) elect to proceed to Closing without
Seller repairing such damage, consummate the Closing, in which case the proceeds of all insurance covering such damage (less any portion retained by Seller’s lender) and post-closing rent loss insurance shall be assigned by Seller to Buyer at
Closing and the Purchase Price shall be reduced by the amount of any deductible and any insurance proceeds retained by Seller’s lender. For purposes hereof, “Material” shall be deemed to mean a damage: (i) resulting in
termination of one or more Leases; (ii) for which the repair cost exceeds $285,000, as reasonably estimated by Seller’s contractor reasonably approved by Buyer; or (iii) the repair time exceeds 3 months from building permit, as
reasonably estimated by Seller’s contractor reasonably approved by Buyer. Seller agrees to provide to Buyer copies of all claims, correspondence, and damage reports and such other information as reasonably requested by Buyer, submitted to or
received by Seller in connection with said casualty. 

(g)         Estoppels.    On or before three
(3) business days after the Contingency Time, Seller shall prepare and deliver to all tenants an estoppel certificate in the AIREA estoppel form and consistent with the information specified on the Section 5.1.1 rent roll. As conditions to
Closing for Buyer’s benefit: (i) Buyer shall have received such executed estoppels dated not earlier than December 1, 2012 from Pomona Valley Hospital Medical Center (“PVH”) and from other tenants aggregating (with
PVH) at least 85% of the rented area of the Property, either in the AIREA form or in such form as is required by the applicable Lease; and (ii) no returned estoppels shall have any material, adverse, information added thereto. All estoppels
returned shall be deemed acceptable to Buyer unless specifically disapproved in writing by the earlier of the Closing or five (5) business days after receipt. For the remainder of the rented area not covered by estoppels to be returned per
Subsection (i), Seller shall deliver on or before three (3) business days prior to Closing estoppels in the form of Exhibit C (“Seller Estoppels”); provided that Seller’s liability under a Seller Estoppels shall terminate
upon receipt after Closing of a tenant estoppel which complies with Subsections (i) and (ii) of this subsection (g). 
 (b)         Rep Changes.    As a Buyer Closing condition, no Material Change (other than those which are timely Cured) shall have occurred.
The term “Change” means the discovery by Buyer (Including as a result of notice from Seller) after the Contingency Time and before the Closing that any Section 8 representation and warranty (excluding Sections 8.6.1 and 8.9.1)
was true on the Effective Date but became untrue by Closing. The term “Material” means that the Change has, or if uncertain or unliquidated is reasonably expected to have, an adverse financial impact on Buyer exceeding $20,000.
Seller covenants to deliver prompt written notice of any Change known to Seller’s Knowledge. Upon a Material Change, Buyer shall give Seller written notice thereof and Seller shall have the option, but not the duty, to correct the underlying
facts so as to cure such Material Change (“Cure”) within five (5) business days after such notice (and such Cure might include a reasonable indemnification of Buyer by Seller as to unliquidated matters in form, scope and
content acceptable to Buyer). Seller’s election not, or failure, to Cure shall not constitute a Seller default unless such Change also constitutes a Seller default under Section 7. 

5.7.1     Failure.    Upon failure of a Section 5.7 condition, Buyer may
terminate this Agreement. Upon the Closing, all conditions in Section 5.7, and any default described in Section 5.7(a) of which Buyer has actual knowledge as of the Closing shall be deemed waived by Buyer. If Buyer timely terminates this
Agreement pursuant to this Section, the Cancellation Procedures shall apply. 

  

					
	Stonecreek\Claremont\PSA-10	  	8	  	

 Exhibit 10.3 

 

6.          CLOSING 

6.1        Opening of Escrow.    Escrow shall be opened upon
delivery of the First Deposit and a fully signed copy of this Agreement to the Escrow Holder. The Deposit and any other funds delivered to Escrow Holder shall be deposited by Escrow Holder in an insured interest bearing account as designated by
Buyer. Escrow Holder is hereby directed to disburse funds held by it in accordance with the terms and provisions of this Agreement, or as otherwise directed in a writing signed by both Buyer and Seller, or their legal counsel described in the
Section 12 notice provisions. These instructions shall be irrevocable and shall supersede any conflicting provision in Escrow Holder's general conditions or in any escrow instructions executed upon Escrow Holder's request. This Agreement shall
constitute escrow instructions to Escrow Holder. Notwithstanding anything contained herein to the contrary, prior to the Contingency Time, this escrow shall constitute a “sole order” escrow, meaning that if Buyer shall timely deliver a
termination notice to Seller and Escrow Holder on or prior to the Contingency Time as provided in Section 5.2 above, Escrow Holder shall immediately refund the Deposit to Buyer. 

6.2        Closing Date.    Provided the Section 5.7
conditions have been satisfied or waived and the Section 6.3 deliveries have been made, the Closing shall occur on the Closing Date; provided, however, that if the Closing Date falls on a Saturday, Sunday or holiday the Closing shall occur on
the next business day thereafter. The Closing shall take place through escrow at the Escrow Holder's office or at such other place and time as the parties shall mutually agree. 

6.2.1     Buyer and Seller instruct Escrow Holder not to record the Deed and otherwise consummate the
Closing on any given day unless: (i) all deliveries pursuant to Sections 6.3 have been made by the time required; (ii) Escrow Holder is prepared to record the Deed; and (iii) Escrow Holder is ready, willing and able to disburse
Seller’s proceeds as directed by Seller by wire transfer no later than Noon Pacific time on the day of recordation. If Escrow Holder cannot comply with such conditions, then Escrow shall not Close that day but shall be postponed to the next
business day, with all Section 6.4 amounts re-prorated; provided that any such extension beyond the scheduled Closing Date shall require the approval of Buyer and Seller and shall not constitute a waiver of any default by a party for failing to
timely consummate the Closing. 
 6.3        Closing Deliveries.

 6.3.1     By Seller.    On or before one (1) day prior to the
Closing, Seller shall deliver or cause to be delivered to Escrow Holder the following, fully executed and acknowledged by Seller as applicable: 
  

	 	(1)	 A grant deed in the form of Exhibit A, attached hereto (“Deed”). 

 

	 	(2)	 Duplicate originals of the Assignment and Bill of Sale in the form of Exhibit B (“Assignment”). 

  

					
	Stonecreek\Claremont\PSA-10	  	9	  	

 Exhibit 10.3 

 

	 	(3)	 A FIRPTA affidavit and California Form 590 RE, in a form prepared by Escrow Holder (“Affidavit”). 

 

	 	(4)	 Escrow Holder’s settlement statement. 

  

	 	(5)	 Duplicate originals of the property management and leasing agreement executed by StoneCreek Company in the form of Exhibit F (“PMA”).

  

	 	(6)	 All Seller Estoppels required under Section 5.7(g). 

  

	 	(7)	 The Holdback Agreement, if applicable per Section 7.1.1 

 

	 	(8)	 Any other monies, documents, instruments, records, correspondence or agreements called for hereunder that have not previously been delivered to Buyer.

 6.3.2     By Buyer.    On or before one
(1) day prior to the Closing (except as noted below), Buyer shall deliver, or cause to be delivered, to Escrow Holder the following, fully executed and acknowledged by Buyer as applicable: 

 

	 	(1)	 The Purchase Price (less the Deposit previously delivered), to be received by Escrow Holder by wire transfer no later than 9:00 a.m. Pacific time on the
Closing Date. 

  

	 	(2)	 Duplicate originals of the Assignment. 

  

	 	(3)	 The amounts allocated to Buyer in Sections 6.5 and Section 6.6. 

 

	 	(4)	 Escrow Holder’s settlement statement. 

  

	 	(5)	 Duplicate originals of the PMA. 

  

	 	(6)	 The Holdback Agreement, if applicable per Section 7.1.1 

 

	 	(7)	 Any other monies, documents, instruments, records, correspondence or agreements called for hereunder that have not previously been delivered to Seller.

 6.4        Closing Procedures. 

6.4.1     Recordings.     Upon receipt of the funds and instruments
described in this Section 6 and written notice to proceed from Buyer and Seller, Escrow Holder shall record the Deed, and record all other documents, including deeds of reconveyance, necessary for title to the Property to be conveyed to Buyer
free and clear of all liens and encumbrances and other matters of record, except for the Permitted Exceptions. 

6.4.2     Deliveries.    Escrow Holder shall immediately (i) deliver to
Buyer: a conformed copy of the Deed; the original Assignment, PMA, and Holdback Agreement if applicable; the 

  

					
	Stonecreek\Claremont\PSA-10	  	10	  	

 Exhibit 10.3 

 
 
original Affidavit; and any other documents delivered into escrow by Seller; and (ii) deliver to Seller: the Purchase Price less the Deposit, Seller's share of prorations set forth in
Section 6.5, and Seller's Closing Costs set forth in Section 6.6; the PMA and the Holdback Agreement, if applicable, and any other documents delivered into escrow by Buyer. 

6.4.3     Ex-Escrow Deliveries.    Promptly following the Closing, Seller shall
deliver to Buyer outside of Escrow (to be delivered at the Seller’s property management office) all of the following in Seller’s Possession: keys to the Improvements; the original Leases and Lease files, including any tenant
correspondence; Service Contracts; Permits. 

6.5        Prorations.     At Closing, the following
prorations shall be computed and apportioned between Buyer and Seller as of the date of Closing based on the ratio of the number of days in the period for which such charges are paid to the number of days in such period (i) before but not
including the date of Closing and (ii) including and from and after the date of Closing: 

6.5.1     Rents and CAM Reimbursements.    The parties shall prorate the
following: Lease rents and Lease expense reimbursements ("Rents"): (i) due for the month in which the Closing occurs ("Closing Month"); and (ii) otherwise collected prior to the Closing. The parties shall not prorate
the following until collected: Rents which are past due prior to the Closing Month ("Receivables"). Rents collected after Closing by Buyer shall be allocated: first to Buyer to the extent of collection costs; next to Buyer to the extent of
Rents applicable to the post-Closing period and then due and payable; next to Seller to the extent of Receivables; and the remainder to Buyer. Seller shall retain the right to commence collection actions for Receivables (without any right to
terminate leases or evict tenants). 
 6.5.2     Expenses.    Water,
sewer and utility charges and any other amounts payable under any Service Contracts, annual permits and/or inspection fees. Seller and Buyer shall cooperate to ensure that utilities are not cut off at Closing, by either transferring to Buyer utility
services on the Closing Date, or coordinating to concurrently terminate Seller, and commence Buyer, utilities. 

6.5.3     Security Deposits.    The amount of any security or other deposits
under the Leases specified in the Assignment shall be credited against the Purchase Price and Seller shall retain such deposits. 
 6.5.4     Taxes.  Real and personal property taxes and assessments on the Property shall be prorated on the actual number of days elapsed. 

6.5.5     Leasing Costs.    For any Lease amendment, extension or new lease
executed after the Effective Date in compliance with Sections 7.1 and 7.1.1 (except for Seller TILC described therein), at Closing Buyer shall assume all obligations to pay or incur brokerage commissions, tenant improvement costs and allowances and
other tenant inducements ("Lease Costs"), and reimburse Seller for all Lease Costs paid to date. All of such Lease Costs must be disclosed to Buyer no later than five (5) Business Days prior to the Contingency Time. Seller shall
be and remain responsible for all brokerage commissions and tenant improvement costs and allowances due on or before Closing with respect to any Lease executed on or before the Effective Date. 

  

					
	Stonecreek\Claremont\PSA-10	  	11	  	

 Exhibit 10.3 

 
 6.5.6    Non-Prorated
Items.  The following items shall not be prorated: insurance premiums. 

6.5.7    Re-prorations.    Seller and Buyer hereby agree that if any of the
Section 6.5 prorations cannot be calculated accurately as of the Closing Date, then the same shall be estimated (based on current information then known, such as the most recent tax bills) for the purposes of Closing and within thirty
(30) days after the Closing Date, or as soon thereafter (but in no event shall re-prorations under Sections 6.5.2, 6.5.4 and 6.5.5 occur more than 90 days after the Closing) as sufficient information is available to permit the parties to
effectively calculate such prorations, either party owing the other party a sum of money based on such subsequent prorations shall pay such sum to the other party within ten (10) days after such calculations. 

6.6       Closing Costs.    Seller shall pay: (1) documentary
transfer tax; (2) costs of removing any lien, assessment or encumbrance required to be discharged hereunder in order to convey title to the Property as herein provided; (3) the cost of a 2006 ALTA standard coverage policy of title
insurance in the amount of the Purchase Price; (4) 50% of the Escrow Holder’s escrow fees; and (5) such other costs and expenses related to the acquisition of the Property normally paid by a seller in the County. Buyer shall pay:
(a) Deed recordation costs; (b) all costs of title insurance other than that described in Subsection (3) Including premiums for extended coverage, any surveys obtained by Buyer and any endorsements; (c) 50% of the Escrow
Holder’s Escrow fees; (d) the cost of any studies conducted by Buyer during Buyer’s due diligence; and (e) such other costs and expenses related to the acquisition of the Property normally paid by a buyer in the County.

 7.        Seller’s Escrow Period
Covenants.    Commencing on the Effective Date and continuing until the Closing or earlier termination of the Agreement, Seller covenants as follows: 

7.1       Leases and Service Contracts.  After the Contingency Time, Seller
agrees not to amend or terminate any Leases or Service Contracts or enter into any new leases or service contracts which cannot be canceled as of Closing. Seller shall promptly deliver (and in all events at least five (5) business days prior to
the Contingency Time) copies of all Lease and Service Contract terminations and amendments and new leases and service contracts executed before the Contingency Time. 

7.1.1    Suite 200 Lease.  Notwithstanding the above, Seller shall have the absolute right to
sign a lease for Suite 200, containing approximately 1,934 rentable sq. ft., within the following parameters and subject to the following conditions (“Approved Lease”) prior to Closing: 

Base Rent:  At least $2.00/month/per rentable sq. ft. (“RSF”). 

Rent Start Date: The rent start date must occur by December 31, 2013. The period from Closing until the rent start
date is the “No Rent Period”. 
 TILC:  Landlord’s cost of moving allowances,
leasing commissions, tenant improvement costs and allowances (“TILC”) shall not exceed $130,000 plus any portion Seller elects to pay (“Seller TILC”). 

  

					
	Stonecreek\Claremont\PSA-10	  	12	  	

 Exhibit 10.3 

 
 Form:  The Approved Lease shall be in
substantially the form attached hereto as Exhibit G, subject to such other changes (“Form Change”) requested by the tenant and agreed to by Seller, and which changes are commercially customary and reasonable for a landlord to
concede under the current medical office building lease practice in the area in which the Property is located (“Reasonable Form Changes”). Seller shall deliver the final form of the Approved Lease to Buyer when completed. Buyer
shall have two (2) business days from receipt to indicate Buyer’s approval of the Reasonable Form Changes to the final Approved Lease, and if Buyer does not respond to Seller within such 2-business day period, Buyer shall be deemed to have
approved such final Approved Lease (it being acknowledged by Buyer, for avoidance of doubt, that Buyer shall have no right to object to or approve the basic terms of the Approved Lease as stated above, or any terms already provided in the lease form
attached as Exhibit G). Buyer shall in any event not unreasonably withhold approval of the Reasonable Form Changes and shall act in good faith regarding its review and approval of the final Approved Lease. 

(a)         If an Approved Lease is executed prior to Closing, then: (1) Purchase
Price shall increase by the sum of $400,000 minus $2.00 per rsf for the No Rent Period (“No Rent Credit”); and (2) Seller will pay all Seller TILC or grant Buyer a credit for Seller TILC at Closing in which case Buyer shall
assume such obligation. 
 (b)         If an Approved Lease is not executed
by Closing, then: (1) the parties shall deliver the Holdback Agreement in the form of Exhibit E; and (2) Buyer will deposit with Escrow Agent the $400,000 (“Holdback”) per the Holdback Agreement; and (3) Buyer shall
retain Clayton M. Corwin, a California licensed broker (“Agent”) as Buyer’s exclusive agent to lease Suite 200 for a period of 9 months after Closing pursuant to a leasing agreement to be mutually and reasonably agreed upon.
The Holdback (less the No Rent Credit and any Seller TILC) will be delivered to Seller (and the No Rent Credit and Seller TILC will be delivered to Buyer) if: (A) Agent delivers to Buyer within such period either (i) an Approved Lease
executed by the tenant, or (ii) a new lease for Suite 200 reasonably acceptable to Buyer, or (B) Seller directly leases or otherwise removes the Suite 200 premises from the market thus impairing Agent’s ability to deliver an Approved
Lease. Otherwise, the Holdback shall be returned to Buyer. Buyer shall reasonably cooperate with Agent’s efforts to lease Suite 200 during such period, and Agent shall likewise keep Buyer informed of the leasing status for Suite 200.

 7.2.        Condition of Property.  Seller shall lease, manage
and maintain the Property consistent with its current operating practices. Seller shall maintain the Improvements in accordance with Seller’s normal operating practices, Including repair or replacement of any mechanical, electrical or plumbing
equipment which first breaks and ceases functioning after the Contingency Time (“Breaks”). Notwithstanding the above, Seller shall have no obligation (a) to repair damage from casualty events, (b) to repair normal wear and
tear items, or (c) any obligation to expend more than $20,000 (except for Breaks) for any correction of defects or deferred maintenance (whether or not such expenditure would have normally been incurred in accordance with Seller’s normal
operating practices). If, after the Effective Date and prior to Closing, Seller receives any Gov’t Notices or discovers to Seller’s Knowledge any Breaks (excluding those repaired by Closing), then Seller will promptly notify Buyer of same.

  

					
	Stonecreek\Claremont\PSA-10	  	13	  	

 Exhibit 10.3 

 

7.3        Title.  After the Effective Date, Seller shall not cause, permit
or suffer any new monetary liens on the Property except for those expressly allowed as Permitted Exceptions. After the Effective Date, and except for memoranda of leases permitted by Section 7.1, Seller shall not cause or expressly permit any
documents to be recorded adversely affecting title to the Property which will not be removed by Closing. By Closing, Seller shall remove all Removed Exceptions. 

8.          Seller Representations and
Warranties.      Seller makes the following representations and warranties as of the Effective Date and again, subject to Changes, as of the Closing Date: 

8.1        Seller is a limited partnership duly organized, validly existing and in good
standing under the laws of the State of California. Seller will keep I full force and effect through the Closing Date its legal existence and all licenses and franchises necessary for the conduct of its business. Seller has obtained all necessary
authorizations and consents to enable it to execute and deliver this Agreement and to consummate the transaction contemplated hereby. This Agreement and the other documents to be executed by Seller hereunder will have been duly entered into by
Seller and will constitute legal, valid and binding obligations of Seller enforceable in accordance with their respective terms. 
 8.2        Seller is not a “foreign person” within the meaning of Section 1445(f) (3) of the Internal Revenue Code of 1986, as amended. 

8.3        The execution, delivery and performance of this Agreement and the Closing
hereunder will not conflict with any agreement, partnership agreement, any other organizational papers or any amendments thereof, contract or law applicable to Seller nor constitute a default under any agreement or instrument to which Seller is a
party or by which Seller or the Property are bound. 
 8.4        Seller has not:
(1) made a general assignment for the benefit of creditors; (2) filed any voluntary petition in bankruptcy; (3) received notice of the appointment of a receiver to take possession of all or substantially all of its assets;
(4) received notice of the attachment or other judicial seizure of all or substantially all of its assets; (5) admitted in writing its inability to pay its debts as they come due; or (6) made an offer of settlement, extension or
composition to its creditors generally. 
 8.5        There is no unsatisfied
judgment, litigation, arbitration or administrative proceeding served upon Seller or, to Seller’s Knowledge pending or threatened in writing against Seller, with respect to the Property or this Agreement. 

8.6        Seller has received no written notice from any governmental authority with
jurisdiction over the Property (“Gov’t Notices”) alleging any current violation of any laws applicable to the Property. 
 8.6.1     Seller has received no Gov’t Notices notifying Seller of a special assessments for public improvements against the Property, whether pending or threatened, Including those
for construction of sewer and water lines or mains, street lights, streets, sidewalks and curbs. 

  

					
	Stonecreek\Claremont\PSA-10	  	14	  	

 Exhibit 10.3 

 

8.7        Seller has not generated, manufactured, stored or disposed of Hazardous Materials
(other than de minimis amounts customarily and properly used in connection with the maintenance of the Property) on the Property in violation of applicable law and which are required by law to be remediated or removed. To Seller’s
Knowledge, there are no Hazardous Materials or underground storage tanks in, on or under the Property in violation of applicable law. 
 8.8        All Seller Estoppels delivered at Closing shall be true and correct. 
 8.9        Seller has received no written notice alleging a Seller default remaining uncured under any Service Contract. 

8.9.1    Seller has given no written notice alleging a third party default remaining uncured under any Service
Contract. 
 8.10      Except for Leasing Costs per Section 6.5.5 and TILC per
Section 7.1.1, there are no sums due as leasing commissions or brokerage or finders fees in connection with any of the Leases for which Buyer will become liable upon Closing. 

8.11      Seller has not received any written notices from any insurance company which has issued a
policy with respect to any portion of the Property, by any board of fire underwriters, or from any governmental authority, alleging any zoning, building, fire or health code violations in respect to the Property. 

8.12      Seller has not granted to any person or entity any option or other right to purchase to the
Property. 
 8.13      Seller has commenced no real property tax reduction proceedings
pending with respect to the Property. 
 8.14      Seller has not commenced and pending, or
threatened in writing, any construction or construction defect litigation against any contractor, engineer or architect with respect to the Property, which has not been resolved to Seller’s satisfaction. 

8.15      To Seller’s knowledge, Seller is not: (i) identified on any governmental
terrorist list or (ii) in violation of any applicable law, rule or regulation relating to anti-money laundering or anti-terrorism, Including any applicable law, rule or regulation related to transaction business with prohibited persons or the
requirements of any Anti-Terrorism Law. 
 9.          Buyer
Representations.  Buyer represents and warrants as of the Effective Date and again as of the Closing as follows: 
 9.1        Buyer has obtained all necessary authorizations and consents to enable it to execute and deliver this Agreement and to consummate the transaction contemplated
hereby. This Agreement and the other documents to be executed by Buyer hereunder will have been duly entered into by Buyer and will constitute legal, valid and binding obligations of Buyer enforceable in accordance with their respective terms.

  

					
	Stonecreek\Claremont\PSA-10	  	15	  	

 Exhibit 10.3 

 
 9.2        The
execution, delivery and performance of this Agreement and the Closing hereunder will not conflict with any agreement, contract or law applicable to Buyer nor constitute a default under any agreement or instrument to which Buyer is a party or by
which Buyer is bound. 
 9.3        Buyer has not (i) made a general
assignment for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy against it; (iii) received notice of the appointment of a receiver to take possession of all or substantially all of its assets; (iv) received
notice of the attachment or other judicial seizure of all or substantially all of its assets; (v) admitted in writing its inability to pay its debts as they come due; or (vi) made an offer of settlement, extension or composition to its
creditors generally. 
 9.4        INTENTIONALLY DELETED.. 

9.5        Except for the Reserved Matters: (1) Seller has not made (and
specifically negates and disclaims) any representations or warranties, promises, covenants, agreements or guarantees of any kind, character or nature whatsoever, whether express, implied or otherwise, oral, written, of, as to, concerning or relating
to any Property Conditions; (2) by the Contingency Time, Buyer will have examined, reviewed and inspected all Property Conditions and other matters which, in Buyer’s judgment, bear upon the Property and its value and suitability for
Buyer’s purposes; (3) upon Closing, Buyer will acquire the Property solely on the basis of its own physical and financial examinations, review and inspections and the title insurance protection afforded by the owner’s title policy;
and (4) upon Closing, Buyer shall assume the risk that Property Conditions, may not have been revealed by Buyer’s investigations. Except for the Reserved Matters, upon the Closing: (a) Buyer represents, warrants, acknowledges and
agrees that upon the Closing, Buyer will be purchasing the Property on an “AS IS, WHERE IS, WITH ALL FAULTS” basis, without representation or warranty of any kind, character or nature, express, implied or otherwise; and (b) Buyer
releases Seller and all of Seller’s members, agents and affiliates from, and waives any and all liability, claims, demands, damages and costs (Including attorneys’ fees and expenses) of any and every kind or character, known or unknown,
for, arising out of, or attributable to, any and all Property Conditions, Including: claims, liabilities and contribution, reimbursement and indemnity rights relating to the presence, discovery or removal of any Hazardous Materials in, at, about
or under any Property, or for, connected with or arising out of any and all claims or causes of action based thereon Including any claims made under CERCLA or other similar environmental laws, whether state or Federal, providing for contribution.
Except for Reserved Matters, the parties intend that the foregoing release shall be effective with respect to all matters, past and present, known and unknown, suspected and unsuspected. Buyer realizes and acknowledges that factual matters now
unknown to it may have given or may hereafter give rise to losses, damages, liabilities, costs and expenses which are presently unknown, unanticipated and unsuspected, and Buyer further agrees that the waivers and releases herein have been
negotiated and agreed upon in light of that realization and that Buyer nevertheless hereby intends to release, discharge and acquit Seller from any such unknown losses, damages, liabilities, costs and expenses. In furtherance of this intention, the
Buyer hereby expressly waives any and all rights and benefits conferred upon it by the provisions of California Civil Code Section 1542, which provides as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

  

					
	Stonecreek\Claremont\PSA-10	  	16	  	

 Exhibit 10.3 

 
 The Buyer acknowledges that the foregoing
acknowledgments, releases and waivers Including the waiver of the provisions of California Civil Code Section 1542 were expressly bargained for. 
 Buyer’s Initials:  /s/ WSR         
 10.          Brokerage Commissions.  Seller shall pay a real estate commission to Seller's Broker pursuant to a separate agreement. Except for
Broker, Seller and Buyer each represent and warrant that no other real estate commission, broker’s fee or finder's fee is payable in connection with the transaction contemplated by this Agreement. Seller Indemnifies Buyer from and against any
and all liabilities, claims, demands, damages, or costs of any kind (Including attorneys’ fees, costs and expenses) arising from or connected with any broker’s or finder’s fee or commission or charge (“Broker Claims”)
claimed to be due by Broker or any person arising from or by reason of the conduct of Seller with respect to this transaction. Buyer Indemnifies Seller from and against any and all Broker Claims claimed to be due by any person (other than Broker)
arising from or by reason of the conduct of Buyer with respect to this transaction. The provisions of this Section shall survive the Closing hereunder. 
 11.          Defaults. 

11.1        Buyer Default.  IF ESCROW FAILS TO CLOSE DUE TO BUYER’S
DEFAULT UNDER THIS AGREEMENT (INCLUDING A DEFAULT UNDER SECTION 3.1.1), SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION FOR THOSE DAMAGES. SUCH DAMAGES WILL, HOWEVER, BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN FOR THE FOLLOWING
REASONS: (1) THE DAMAGES SELLER WOULD BE ENTITLED TO IN A COURT OF LAW WILL BE BASED IN PART ON THE DIFFERENCE BETWEEN THE ACTUAL VALUE OF THE PROPERTY AT THE TIME SET FOR THE CLOSING AND A PURCHASE PRICE FOR THE PROPERTY AS SET FORTH IN THIS
AGREEMENT; (2) PROOF OF THE AMOUNT OF SUCH DAMAGES WILL BE BASED ON OPINIONS OF VALUE OF THE PROPERTY, WHICH CAN VARY IN SIGNIFICANT AMOUNTS; AND (3) IT IS IMPOSSIBLE TO PREDICT AS OF THE DATE ON WHICH THIS AGREEMENT IS MADE THE EXTENT TO
WHICH THE VALUE OF THE PROPERTY WILL INCREASE AS OF THE DATE SET FOR THE CLOSING. BUYER DESIRES TO LIMIT THE AMOUNT OF DAMAGES FOR WHICH BUYER MIGHT BE LIABLE SHOULD BUYER BREACH THIS AGREEMENT AS AFORESAID. BUYER AND SELLER WISH TO AVOID THE COST
AND LENGTHY DELAYS WHICH WOULD RESULT IF SELLER FILED A LAWSUIT TO COLLECT ITS DAMAGES FOR A BREACH OF THIS AGREEMENT. THEREFORE, IF ESCROW FAILS TO CLOSE DUE TO A BUYER DEFAULT AS DESCRIBED ABOVE, THE SUM THEN REPRESENTED BY THE DEPOSIT (WHETHER
THEN HELD BY ESCROW HOLDER, SELLER OR BOTH) SHALL BE DEEMED TO CONSTITUTE A REASONABLE ESTIMATE OF SELLER’S DAMAGES UNDER THE PROVISIONS OF SECTION 1671 OF THE CALIFORNIA CIVIL CODE, AND SELLER’S SOLE AND EXCLUSIVE REMEDY IN THE EVENT OF
THE FAILURE TO CLOSE ESCROW RESULTING FROM A BUYERS DEFAULT 

  

					
	Stonecreek\Claremont\PSA-10	  	17	  	

 Exhibit 10.3 

 
 
SHALL BE LIMITED TO SUCH AMOUNTS AND SELLER SHALL HAVE NO RIGHT TO AN ACTION FOR SPECIFIC PERFORMANCE OF ANY PROVISIONS OF THIS AGREEMENT. IN CONSIDERATION OF THE PAYMENT OF SUCH LIQUIDATED
DAMAGES, SELLER WILL BE DEEMED TO HAVE WAIVED ALL OTHER CLAIMS FOR DAMAGES OR RELIEF AT LAW OR IN EQUITY INCLUDING ANY RIGHTS SELLER MAY HAVE PURSUANT TO SECTION 1680 OR SECTION 3389 OF THE CALIFORNIA CIVIL CODE. BY INITIALING THIS PROVISION IN THE
SPACES BELOW, SELLER AND BUYER EACH SPECIFICALLY AFFIRM THEIR RESPECTIVE AGREEMENTS CONTAINED HEREIN AND AGREE THAT SUCH SUM IS A REASONABLE SUM CONSIDERING THE CIRCUMSTANCES AS THEY EXIST ON THE DATE OF THIS AGREEMENT. NOTWITHSTANDING THE
FOREGOING, THE PAYMENT OF LIQUIDATED DAMAGES TO SELLER PURSUANT TO THE FOREGOING SHALL NOT RELEASE BUYER OF ITS INDEMNITY OBLIGATION SET FORTH IN SECTIONS 5.3 AND 10, BUYER’S OBLIGATION TO PAY ITS SHARE OF ESCROW CANCELLATION FEES IN ACCORDANCE
WITH THE PROVISIONS HEREIN OR, IF NECESSARY FOR ATTORNEYS’ FEES TO ENFORCE THIS PROVISION. 
  

			
	  SELLER’S INITIALS: /s/ CMC  
	  	 BUYER’S INITIALS:  /s/ WSR

 11.2      Seller Default.  If Seller defaults under
any of the terms of this Agreement prior to Closing and if such default is not cured within ten (10) days after receipt by Seller of written notice from Buyer, Buyer shall be entitled as the sole and exclusive remedy of Buyer to either:
(1) terminate this Agreement, receive a refund of the Deposit, and commence an action for reimbursement of Buyer’s reasonable out-of-pocket costs not to exceed $400,000 incurred in connection with performing Property due diligence; or
(2) commence an action for specific performance. In no event shall Buyer be entitled to actual, punitive or consequential damages. Upon Closing, Buyer waives all Seller defaults known to Buyer. 

11.2.1   If Seller defaults in any post-Closing covenant or in any Section 8 representation or warranty that
survives Closing or Seller Estoppel, subject to Sections 13.9 and 13.10, Buyer shall be entitled to seek actual damages in an amount not exceeding an amount equal to $400,000 Including any award for attorneys fees and costs. In no event shall Buyer
be entitled to punitive or consequential or other actual damages. 

12.        Notices.  All notices, elections, requests and other
communication hereunder shall be in writing and shall be deemed given (a) when personally delivered or delivered by reputable overnight courier service; or (b) two (2) business days after being deposited in the United States mail,
postage prepaid, certified or registered, or (c) when sent by facsimile before 5:00 p.m. Pacific time on a business day (as evidenced by a confirmation slip from sender’s fax machine showing the transmission date and time and
recipient’s fax number) and otherwise on the next business day. Phone and email addresses are provided for convenience only and shall not constitute effective notice. Notices shall be addressed as follows (or to such other person or at such
other address, of which any party hereto shall have given written notice as provided herein): 
  

					
	 If to Seller:
	  	 Clayton M. Corwin

		  	 StoneCreek Company

		  	 30212 Tomas, Suite 300

		  	 Rancho Santa Margarita CA 92688

		  	 Phone
	 	 949 709 8080

		  	 Fax
	 	 949 709 8081

		  	 Email ccorwin@stonecreekcompany.com

  

					
	Stonecreek\Claremont\PSA-10	  	18	  	

 Exhibit 10.3 

 
  

					
	 cc:
	  	 Milburn A. Matthews, Esq.

		  	 Coontz & Matthews LLP

		  	 30900 Rancho Viejo Road, Suite 230

		  	 San Juan Capistrano CA 92675-1776

		  	 Phone
	  	 949 240 3040

		  	 Fax
	  	 949 240 7540

		  	 Email
	  	 mibs@coontzmatthews.com

		
	 If to Buyer:
	  	 MMIC Acquisition Corporation

		  	 1307 W 6th Street, Suite 214

		  	 Corona CA 92882

		  	 Attn: Paul Sandler

		  	 Phone
	  	 951 520 0471

		  	 Fax
	  	 805 456 0334

		  	 Email
	  	 psandler@montecitomac.com

		
	 Cc:
	  	 William S. Rogers, Jr., Esq.

		  	 Beavers/Rogers Law & Advisory Group, LLC

		  	 500 Jesse Jewell Parkway, Suite 300

		  	 Gainesville, GA 30501

		  	 Phone
	  	 678 928 5275

		  	 Fax
	  	 770 534 8689

		  	 Email
	  	 brogers@beaversrogers.com

		
	 If to Escrow Holder:
	  	 First American Title Insurance Company

		  	 5 First American Way

		  	 Santa Ana CA 92707:

		  	 Escrow Officer: Ryan Hahn

		  	 Phone
	  	 714 250 8394

		  	 Fax
	  	 714 242 7478

		  	 Email
	  	 rhahn@firstam.com

 13.        Miscellaneous Provisions 

13.1      Binding Effect; Assignment.  This Agreement shall be binding upon and
shall inure to the benefit of Seller and Buyer and their respective successors and assigns. Buyer’s rights under this Agreement shall be fully assignable; provided that such assignment shall be subject to a written assignment executed by
assignor and assignee in the form of Exhibit D which shall have been delivered to Seller and Escrow Holder at least five (5) business days prior to Closing. 

13.2      Captions.  The several headings and captions of the sections and
subsections used herein are for convenience of reference only, and shall in no way be deemed to limit, define or restrict the substantive provisions of this Agreement. 

  

					
	Stonecreek\Claremont\PSA-10	  	19	  	

 Exhibit 10.3 

 
 13.3.      Entire
Agreement; No Recording.    This Agreement constitutes the entire agreement of Buyer and Seller with respect to the purchase and sale of the Property, and supersedes any prior or contemporaneous agreement with respect
thereto. No amendment or modification of this Agreement shall be binding upon the parties unless made in writing and signed by both Seller and Buyer. This Agreement shall not be recorded by any party and, if recorded by any party, the other party
hereto may immediately terminate all of its obligations under this Agreement, and the party who recorded the Agreement shall pay all reasonable costs and attorneys’ fees in removing this Agreement of record. 

13.4      Time of Essence.  Time is of the essence with respect to the performance
of all the terms, conditions and covenants of this Agreement. 
 13.5      Governing
Law.  This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws and customs of the State of California. 

13.6      Counterparts.  This Agreement and any amendments may be executed in any
number of counterparts and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement and any
amendments may be executed and then delivered by fax or PDF scan by email which shall constitute effective execution and delivery. 
 13.7      Tax-Deferred Exchange.  Buyer and/or Seller (“Exchangor”), at its option, may close the transfer of the Property as an exchange of real
property qualifying under Section 1031 of the Internal Revenue Code of 1986, as amended (which may include distribution of Property tenancy-in-common interests to beneficial owners from Seller in redemption of their interest in Seller). If the
Exchangor so elects, then (i) the Exchangor may delegate its obligations and assign its rights under this Agreement to a deferred exchange intermediary (an "Intermediary"); (ii) such delegation and assignment shall in no way reduce,
modify or otherwise affect the obligations of Exchangor pursuant to this Agreement; (iii) Exchangor shall remain fully liable for its obligations under this Agreement as if such delegation and assignment shall not have taken place;
(iv) Intermediary shall have no liability to the other party, notwithstanding such delegation and assignment; and (v) the Closing of the transfer of the Property shall be undertaken by direct deed from Seller to Buyer. 

13.8      Confidentiality.  Buyer acknowledges that it is in the best interest of
Buyer and Seller to maintain the confidentiality of the terms and provisions of this Agreement and the materials relating thereto. Except as otherwise provided herein, Buyer shall not disclose any of the terms or provisions of this Agreement prior
to the Closing to any person or entity not a party to this Agreement, nor, prior to the Closing shall Buyer issue any press release or make any public statement relating to this Agreement or Buyer’s intended use of the Property, and Buyer shall
keep all materials provided or made available to Buyer by Seller, and all materials generated by Buyer in the course of conducting its inspections, review of books and records, and other due diligence activities relating to the Property (Including
matters relating to the environmental condition of the Property), whether obtained through documents, oral or written communications, or otherwise, (collectively, the “Information”), in the strictest confidence.

  

					
	Stonecreek\Claremont\PSA-10	  	20	  	

 Exhibit 10.3 

 
 
Under no circumstances shall any of the Information be used for any purpose other than the investigation of the Property in connection with its purchase by Buyer and contemplated under this
Agreement. Buyer shall cause the confidentiality obligations set forth in this Section to be agreed to by its attorneys, auditors, lenders, equity partners, consultants, accountants and any other third parties which Buyer may employ or with which
Buyer may work in connection with this transaction and the investigations contemplated hereunder, each of whom shall be exceptions to the non-disclosure provisions hereof. 

13.9      Survival.    The following shall survive the Closing and
delivery of the Deed indefinitely: (1) Buyer Section 9 representations and warranties; (2) any Buyer or Seller indemnifications expressly set forth in this Agreement or the Assignment; and (3) any Buyer or Seller covenants in
this Agreement which expressly survive the Closing or are specified to be performed post-Closing. All Seller Section 8 representations and warranties, Seller Estoppels shall survive Closing for a period of six months after the recordation of
the Deed and will thereupon terminate except to the extent of any claims expressly specified in a lawsuit then filed and served or delivered per the Section 12 notice provisions (provided that such delivery shall not constitute effective
service of process). Except as provided above, upon completion of the Closing all other liability and obligations of Buyer and Seller shall terminate. 
 13.10    Limitation on Seller's Liability.    Buyer acknowledges and agrees that its recourse against Seller under this Agreement for a default by Seller hereunder is
limited to the remedies set forth in Section 11.2 and any other remedies expressly set forth in this Agreement, and in no event shall Buyer seek or attempt to obtain any recovery or judgment against any other assets (if any) of Seller, or
against any of Seller’s direct or indirect members, partners, directors, officers, employees or shareholders. 

13.11    Attorney Fees.  If any action is instituted between any one or more of Buyer, Seller
and Escrow Holder in connection with the enforcement of this Agreement or any provision hereof, the party prevailing in such action shall be entitled to recover from the other party all of its reasonable costs in bringing such action, Including
reasonable attorney fees. 
 14.    Equity Participation Right.  Pursuant to the terms set forth
below, Buyer shall offer to Seller (assignable to Seller’s partners, with the requirement that such partners form a single investment entity) the right to become a member, partner or shareholder (the “Seller Investment
Opportunity”) in the partnership or limited liability company entity formed by the principals of Buyer (“Montecito Partnership Entity”) and Buyer’s institutional equity partner (“Equity Partner”) to be
a single purpose entity to which Buyer will assign this Agreement at or prior to Closing and which will be the fee simple owner of the Property (the “SPE”) . The Seller Investment Opportunity shall be in a joint venture to be formed
by Seller’s investors, as a single entity (“Seller’s Investors”), and the Montecito Partnership Entity (such joint venture being referred to as the “Seller/Montecito Investment Entity”), which
Seller/Montecito Investment Entity shall be the partner in the SPE with the Equity Partner. Seller’s Investment Opportunity shall be limited to a maximum of $500,000 of cash equity (“Seller’s Equity”) invested in the
Seller/Montecito Partnership Entity. Seller’s Equity shall be pari passu with the Montecito Partnership Entity’s property level economic rights solely arising from the Montecito Partnership Entity’s cash contributions to the SPE
(including preferred returns, if any, and a prorata share of profit distributions, but specifically excluding any additional “promote” or acquisition, disposition, management, leasing or other fees paid or payable to the Montecito
Partnership 

  

					
	Stonecreek\Claremont\PSA-10	  	21	  	

 Exhibit 10.3 

 
 
Entity or an affiliate thereof) but shall specifically exclude any voting, governance, approval, management or other rights under the SPE governing documents (including, without limitation, the
right to participate in, or trigger, any buy/sell rights under such SPE governing documents) (such SPE governing documents being referred to as the “SPE Governing Documents”) It is understood and agreed that the Seller Investment
Opportunity is intended for all purposes to be a passive investment in the Seller/Montecito Investment Entity and SPE, and the Seller/Montecito Partnership Entity governing documents and the SPE Governing Documents shall so reflect. Seller agrees to
accept the terms and conditions of the Seller/Montecito Partnership Entity governing documents and the SPE Governing Documents (as negotiated by the Montecito Partnership Entity Principals), so long as such documents reflect the pari passu nature of
the Seller Investment Opportunity, and such documents do not material and adversely affect the return on Seller’s Equity as provide above or as stated and accepted in the term sheet as provided below. Buyer shall present Seller with the details
of the Seller Investment Opportunity via a written term sheet no later than ten (10) business days following the Effective Date. Seller shall accept or reject the Seller Investment Opportunity in writing within five (5) days of receipt.
Failure of Seller to respond to the Seller Investment Opportunity within the required 5-day period shall constitute rejection of the Seller Investment Opportunity by Seller’s Investors. Upon Seller’s rejection, or deemed rejection, of the
Seller Investment Opportunity, Seller and Seller’s Investors shall be deemed to have fully and completely waived any rights to participate in the investment with the Montecito Partnership Entity or in the SPE as contemplated herein, and this
transaction shall close without such participation by Seller’s Investors in any manner. If Seller accepts such Seller Investment Opportunity, such acceptance shall be deemed a binding obligation of Seller’s Investors to invest the
Seller’s Equity at Closing. In the event Seller’s Investors fail or refuse to contribute Seller’s Equity as required at Closing, Buyer shall have the unilateral right, at Buyer’s sole option, to (i) close this transaction
without Seller’s Equity, with no liability whatsoever to Seller or Seller’s Investors, or (ii) extend the Closing for up to a maximum of 60 days to allow Buyer time to replace Seller’s Equity . 

 

	
	 Initials:   /s/ CMC  
        /s/ WSB      

 \\\\\ 

[signature page follows] 

  

					
	Stonecreek\Claremont\PSA-10	  	22	  	

 Exhibit 10.3 

 
 In witness whereof, the parties hereto have executed
this Agreement as of the Effective Date. 
  

											
		 	Seller:	 		 	 Claremont Venture I, L.P., a California limited partnership

				
		 		 		 	By: Claremont Manager, Inc., a California corporation, General Partner

 

			
	 By:
	 	 /s/ Clayton M. Corwin

		 	  Clayton M. Corwin, President

 

											
		 	Buyer:	 		 	 MMIC Acquisition Corporation, a Florida corporation

 

			
	 By:
	 	 /s/ William S.
Rogers

 
			
		
	 Title:
	 	 William S. Rogers, V.P.

 Acceptance:  The undersigned hereby accepts its appointment as Escrow Holder under the terms
of the foregoing Agreement and agrees to follow the terms and provisions thereof as its escrow instructions in connection with the contemplated transactions. 
  

					
	 First American Title Insurance Company

			
	 By:
	 	  
	 	
		 	 Ryan Hahn, Escrow Officer
	 	

 Date: November      , 2012 

LIST OF EXHIBITS 

	A	 Grant Deed 

	B	 Assignment and Bill of Sale 

	C	 Seller Estoppel 

	D	 Sale Agreement Assignment 

	E	 Holdback Agreement 

	F	 PMA 

	G	 Suite 200 draft lease 

  

					
	Stonecreek\Claremont\PSA-10	  	23	  	

 Exhibit 10.3 

 
 Exhibit A - GRANT DEED 

RECORDING REQUESTED BY AND 
 WHEN
RECORDED MAIL TO AND 
 MAIL TAX STATEMENTS TO: 
         
         

        

        
  

 
 (Above Space For Recorder's Use Only)

 GRANT DEED 
 In
accordance with Section 11932 of the California Revenue and Taxation Code, Grantor has declared the amount of transfer tax which is due by a separate statement which is not being recorded with this Grant Deed. 

For a valuable consideration, receipt of which is hereby acknowledged, Claremont Venture I, L.P., a California limited partnership, hereby grants
to       , a       , the real property described as follows: 
 [      – insert legal description from PTR upon receipt] 

This conveyance is subject to: non-delinquent taxes and assessments; all matters whether or not of record; and any matters which could be
ascertained by a proper inspection or survey of such real property. 
  

									
	 Dated: December       , 2012
	 		 	 Claremont Venture I, L.P., a California limited partnership

			
		 		 	 By: Claremont Manager, Inc., a California corporation, General Partner

					
		 		 		 	 By:
	 	  

		 		 		 		 	  Clayton M. Corwin, President

  

									
	 STATE OF
	 	  
	 	 )
	 	 SS
	  	
	 COUNTY OF
	 	  
	 	 )
	 		  	

  

	
	 On
                                 before me,
                                        ,
Notary Public, personally appeared                             

	  

	 who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

  

					
	Stonecreek\Claremont\PSA-10	  	24	  	

 Exhibit 10.3 

 
 I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 

 

			
	 Signature
	 	  

 This area for official notarial seal.       

  

					
	Stonecreek\Claremont\PSA-10	  	25	  	

 Exhibit 10.3 

 
 Exhibit B-Assignment and Bill of Sale 

This Assignment and Bill of Sale (“Assignment”) is made as of December       , 2012 between
Claremont Venture I, L.P., a California limited partnership (“Seller”), and       , a        (“Buyer”). 

1.          Seller is the owner of that certain real property known as Claremont Medical Plaza,
1601 Monte Vista Drive, Claremont CA (“Land”). Seller hereby assigns, transfers, sets over and conveys to Buyer all of Seller’s right, title and interest in, to and under: 

(1)        The existing leases of any of the Land or improvements thereon
(“Leases”), including without limitation the leases described on the rent roll in Schedule A. 

(2)        All security deposits described in Schedule B (“Deposits”).

 (3)        The contracts described in Schedule C (“Service
Contracts”) without any representation or warranty as to their assignability. 

(4)        All federal, state and local governmental consents, waivers, authorizations,
licenses, approvals and permits required for the occupancy, management, leasing, maintenance and operation of the Land and improvements (“Permits”). 

(5)        All of Seller’s right, title and interest in (i) any tangible personal
property located on or in the Land and improvements thereon and used exclusively in the operation thereof; and (ii) any intangible personal property relating exclusively to the Land and improvements thereon (“Personalty”).

 2.          Buyer accepts the Leases, Deposits, Service Contracts, Permits and
Personalty. Buyer assumes all obligations under the Leases and Service Contracts arising on and after the date hereof and all obligations to the tenants under the Leases with respect to return of the Deposits pursuant to such Leases. 

3.          This Assignment is made by Seller on an “as is, where is” basis, and
without any representation or warranty whatsoever except that Seller represents and warrants Buyer has the right to convey the Leases and Deposits to Buyer. Schedules A, B and C are hereby incorporated herein by this reference. This Assignment is
binding upon and inures to the benefit of Seller and Buyer and their respective heirs, executors, administrators, successors and assigns. This Assignment may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. 
 In witness whereof, Seller and Buyer have executed this Assignment as
of the above date. 
  

									
	Seller:	 		 	 Claremont Venture I, L.P., a California limited partnership

		 		 	 By: Claremont Manager, Inc., a California corporation, General Partner

					
		 		 		 	 By:
	 	  

		 		 		 		 	 Clayton M. Corwin, President

	Buyer:	 		 	        
	 		 	
		 		 		 		 	

  

					
	Stonecreek\Claremont\PSA-10	  	26	  	

 Exhibit 10.3 

 
 Exhibit C - Form of Seller Estoppel 

This Certificate is made as of December       , 2012 by Claremont Venture I, L.P., a California limited
partnership (“Seller”) for the benefit of        (“Buyer”

), Buyer’s prospective lender(s), and their successors and assigns, and is made pursuant to that certain Sale Agreement dated November 9, 2012, as may have been amended (“Sale Agreement”).
All capitalized terms not otherwise defined herein shall have the meaning specified in the Sale Agreement. Seller represents and warrants as follows, subject to Sale Agreement Sections 5.5, 5.7.1, 11.2, 13.9 and 13.10. 

1.          The following documents constitute the lease (“Lease”) between
Seller as landlord (“Landlord”), and Tenant with respect to Suite        (“Premises”) at       , California:
      . A correct and complete copy of the Lease is attached hereto. The Lease constitutes the entire agreement between Landlord and Tenant with respect to the Premises and is in full force and effect. The Lease
has not been modified, changed, altered or amended in any respect except as attached hereto. Except as specified in the Lease: (a) Tenant has made no agreements with Landlord or its agent or employees concerning free rent, partial rent, rebate
of rental payments or any other type of rental or other concession except as expressly set forth in the Lease; and (b) Tenant has no option or preferential right: (i) to lease or occupy additional space; (ii) to purchase all or any
part of the Premises or any right or interest with respect to the Premises; or (iii) to renew or extend the term of the Lease. 

2.           Monthly base rent is $      , and is paid
through the month of       . 

              Monthly installments of estimated CAM reimbursements are
$       

              Security Deposit is
$      . 
               Lease
term expires       , subject to the extension options in the Lease. 
 No other rent has been paid
more than one month in advance. To Seller’s Knowledge, Tenant has no claim or defense against Landlord under the Lease and is asserting no offsets or credits against either the rent or Landlord. 

3.          To Seller’s Knowledge, Tenant has accepted possession of the Premises. All
improvements to be constructed on the Premises by Landlord have been completed and any tenant construction allowances have been paid in full. To Seller’s Knowledge, all conditions of the Lease to be performed by Landlord and necessary to the
enforceability of the Lease have been satisfied. 
 4.          To Seller’s
Knowledge, as of this date, there exists no default under the Lease by Landlord or Tenant. To Seller’s Knowledge, no claim, controversy, dispute, quarrel or disagreement exists between Tenant and Landlord. Seller has not received written notice
from tenant alleging any uncured Seller default under the Lease. 
  

											
	 Dated December       , 2012
	 		 	 Claremont Venture I, L.P., a California limited partnership

		 		 	 By:  Claremont Manager, Inc., a California corporation, General Partner

						
		 		 		 		 	 By:
	 	 
		 		 		 		 	     Clayton M. Corwin, President

  

					
	Stonecreek\Claremont\PSA-10	  	27	  	

 Exhibit 10.3 

 
 Exhibit D - SALE AGREEMENT ASSIGNMENT 

This Sale Agreement Assignment ("Assignment") is made as of        by and between
      , a        ("Assignor") and       , a        ("Assignee"), and is made with
respect to the Sale Agreement by and between Assignor and Claremont Venture I, L.P., a California limited partnership ("Seller") dated November 9, 2012, as amended        ("PSA"). For good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 Assignor
hereby assigns to Assignee all of Assignor's right, title and interest in and to the PSA, the escrow created pursuant to the PSA, any Deposits (as defined in the PSA) in such escrow or held by Seller, and all other rights and assets appurtenant to
any of the above ("Assets"). 
 Assignee hereby accepts the Assets and assumes all of Assignor's obligations under the PSA, whether
arising before or after the date of this Assignment. Assignor acknowledges that it is not released (as a result of such assignment or for any other reason) from any PSA obligations, whether arising before or after the date of this Assignment. All of
Assignor’s knowledge with respect to the Property is hereby attributed to Assignee, which is deemed to have such same knowledge. 

Upon deliver hereto to Seller, Buyer’s address per PSA Section 12 is hereby changed to:       
[Alternatively - Buyer’s address per PSA Section 12 remains unchanged.] 
 In witness whereof, the undersigned have
executed this Assignment as of the above date. 
  

									
	 Assignor:
	 		 	       , a        

				
		 		 		 	By:                             
                                         
                   
				
		 		 		 	Title:                            
                                         
                
			
	 Assignee:
	 		 	           , a        

				
		 		 		 	By:                             
                                         
                   
				
		 		 		 	Title:                            
                                         
                

  

					
	Stonecreek\Claremont\PSA-10	  	28	  	

 Exhibit 10.3 

 
 EXHIBIT E - HOLDBACK ESCROW AGREEMENT 

This Holdback Escrow Agreement (“Agreement”) is entered into by and among Claremont Venture I, L.P., a California
limited partnership (“Seller”),        (“Buyer”), and FIRST AMERICAN TITLE INSURANCE COMPANY (“FATCO”) effective December
      , 2012 
 Recitals 

Seller and Buyer entered into that certain Sale Agreement dated November 9, 2012, as amended
       (“PSA”), pursuant to which Buyer agrees to pay Seller up to $400,000 (“Holdback”) in additional purchase price contingent upon certain leasing activity in Claremont
Medical Center, more particularly described in the PSA (“Property”). Pursuant to the PSA, at Closing Buyer has agreed to deposit into an escrow per this Agreement the Holdback to be held by FATCO and paid to Seller and/or returned
to Buyer per the PSA. FATCO agrees to act as escrow holder to hold, administer, invest and disburse the Holdback on the terms and conditions herein set forth. 
 NOW, THEREFORE, in consideration of the foregoing and in consideration of the mutual covenants of the parties herein contained, which each of the parties acknowledges is adequate and sufficient, the parties hereto
agree as follows: 
 1.          Definitions.  All
capitalized terms used herein, unless otherwise herein defined, shall have the meanings given them in the PSA. 

2.          Appointment.  Buyer and Seller hereby appoint FATCO
to serve as escrow holder for the purposes set forth herein, and FATCO accepts such appointment. 

3.          Acknowledgment of Receipt.  FATCO hereby
acknowledges receipt of the Holdback delivered by Seller to FATCO from FATCO Escrow No. NCS       . 
 4.          Administration of Holdback.  FATCO hereby agrees to hold and administer the Holdback pursuant to the terms and conditions of this
Agreement. The Holdback shall not be commingled. 

5.          Conditions Precedent to Disbursement.  The Holdback
shall be disbursed as follows: 
 (1)   The Holdback (less the No Rent Credit and any Seller TILC) will be
delivered to Seller (and the No Rent Credit and Seller TILC will be delivered to Buyer) if either (A) Agent delivers to Buyer by September 30, 2013 either (i) an Approved Lease executed by the tenant, or (ii) a lease for Suite
200 reasonably acceptable to Buyer, or (B) Seller leases or otherwise removes the Suite 200 premises from the market thus impairing Agent’s ability to deliver an Approved Lease (and if Buyer and Seller disagree on whether a lease for Suite
200 should be “reasonably” acceptable to Buyer, or whether any event described in Subsection (B) has occurred, then such dispute shall be submitted to binding arbitration pursuant to PSA Section 15
(“Arbitration”); or 
 (2)  The Holdback shall be disbursed to Buyer directly if the conditions
to delivery in (1) above are not satisfied, by the later of September 30, 2013 or entry of the arbitrator’s award in any Arbitration pending (and of which FATCO has been given notice) on September 30, 2013 (“Pending
Arbitration”). 

  

					
	Stonecreek\Claremont\PSA-10	  	29	  	

 Exhibit 10.3 

 
 Any disbursement shall be subject to confirmation in writing by Buyer
and Seller All disbursements made under this Agreement shall be made by wire transfer (if the recipient gives FATCO such instructions, and otherwise by cashier’s check and delivered to the specified recipient via U.S. Postal Service, regular
mail, or at Seller’s request, by wire transfer. 

6.          Term.  This Agreement shall terminate upon the
earlier to occur of: (i) agreement of Buyer and Seller; (ii) disbursement of the entire Holdback, in which case any remaining interest accrued on the Holdbacks shall be distributed to the party entitled to the Holdback; or (iii) the
later of October 10, 2013 or entry of the arbitrator’s award in any Pending Arbitration, whereupon FATCO shall either: (a) deliver the remainder of the Holdback pursuant to a written agreement between Buyer and Seller; or
(b) interplead and deliver the deliver the remainder of the Holdback to the court. 

7.          Indemnification of FATCO.  If this Agreement or any
matter relating hereto shall become the subject of any litigation or controversy, Buyer and Seller shall, jointly and severally, indemnify, defend (with counsel satisfactory to FATCO) and hold FATCO free and harmless from any loss or expense,
including attorneys’ fees, that may be suffered by it by reason thereof other than as a result of FATCO’s breach of this Agreement, negligence or willful misconduct. In the event conflicting demands are made or notices served upon FATCO
with respect to this Agreement, or if there shall be uncertainty as to the meaning or applicability of the terms of this Agreement, Buyer and Seller expressly agree that FATCO may (but will not be required to) file a suit in interpleader and to
obtain an order from the court requiring Buyer and Seller to interplead and litigate their several claims and rights among themselves. Upon the filing of the action in interpleader and the deposit of the Holdbacks into the registry of the court,
FATCO shall be fully released and discharged from any obligations imposed upon it by this Agreement with respect to the amount so deposited with the court. Alternatively, FATCO may continue to hold the Holdback in escrow until directed by written
agreement of the parties hereto or by a court order. 

8.          Liability.  FATCO shall not be liable for the
sufficiency or correctness as to form, manner, execution or validity of any instrument deposited with it, nor as to the identity, authority or rights of any person executing such instrument. It is agreed that the duties of the FATCO are purely
ministerial in nature, and that FATCO’s duties hereunder shall be limited to the safekeeping of the Holdbacks and documents received by it as FATCO, and for their disposition in accordance with the terms of this Agreement. The FATCO may seek
the advice of independent legal counsel in the event of any dispute or question as to the construction of any of the provisions of this Agreement or its duties hereunder, and it shall incur no liability and shall be fully protected in respect of any
action taken or suffered by it except for FATCO’s negligence or willful misconduct. 

9.          Maintenance of Confidentiality By FATCO.  Except as
may otherwise be required by law or by this Agreement, FATCO shall maintain in strict confidence and not disclose to anyone the existence of this Agreement, the Contract, the identity of the parties to the foregoing, the amount of the Purchase
Price, the provisions of this Agreement or the Contract or any other information concerning the transactions contemplated hereby or by the Contract, without the prior written consent of Buyer and Seller. 

  

					
	Stonecreek\Claremont\PSA-10	  	30	  	

 Exhibit 10.3 

 

10.        Investment of Holdbacks. 

(a)        FATCO shall invest and reinvest the Holdback at the written instruction of Buyer
in governmentally insured interest-bearing accounts as Buyer shall direct. The investment of the Holdback shall be at the sole risk of Buyer. All interest shall accrue to the benefit of Buyer, shall not increase the amount of the Holdback, and shall
be paid to Buyer periodically. Buyer shall provide the FATCO with a taxpayer identification number. 

(b)        FATCO is not and shall not be responsible for maintaining the value of any
investment or providing investment counseling. In addition, FATCO is not to be held responsible for any loss of principal or interest which may be incurred as a result of making the investments or redeeming said investments for the purposes of this
Agreement. 
 11.        Notices.  The notice provisions in the
PSA are hereby incorporated herein by this reference. Buyer’s, Seller’s and FATCO’s addresses are set forth in the PSA. 
 12.        Miscellaneous.  This Agreement may not be assigned by any party without the consent of the other parties. This Agreement shall be construed under
and governed by the laws of the State of California and, in the event that any provision hereof shall be deemed illegal or unenforceable, said provision shall be severed herefrom and the remainder of this Agreement shall be enforced in accordance
with the intent of the parties as herein expressed. This Agreement may not be amended or altered except by an instrument in writing executed by all the parties hereto. Buyer shall pay any reasonable fees charged by FATCO for its services hereunder
and Seller shall not be responsible for any fees of FATCO. This Agreement may be executed in multiple counterparts and by the parties on separate counterparts, each of which shall be deemed to be an original and all of which shall together
constitute one and the same agreement. The parties may execute and deliver this Agreement, Draw Notices and Objections by forwarding signed facsimile or scanned email copies of this Agreement. Such facsimile signatures shall have the same binding
effect as original signatures, and the parties hereby waive any defense to validity based on any such copies or signatures. 
 In witness whereof, the parties have executed this Agreement as of the above date. 
  

									
	 Buyer:
	 		 	          

			
	 Seller:
	 		 	 Claremont Venture I, L.P., a California limited partnership

			
		 		 	 By: Claremont Manager, Inc., a California corporation, General Partner

					
		 		 		 	 By:
	 	 
		 		 		 		 	 Clayton M. Corwin, President

			
	 FATCO:
	 		 	 First American Title Insurance Company

					
		 		 		 	 By:
	 	 
		 		 		 		 	 Ryan Hahn, Escrow Officer

  

					
	Stonecreek\Claremont\PSA-10	  	31	  	

 Exhibit 10.3 

 
 Exhibit F - PMA 

PROPERTY MANAGEMENT AGREEMENT 

Claremont Medical Plaza – 1601 Monte Vista Avenue, Claremont, California 

This Property Management Agreement ("Agreement") is made as of
                        ,          ("Effective Date"), between
StoneCreek Investment Corporation, a California corporation dba StoneCreek Company ("Manager") and
                                         
             , a
                                         
  ("Owner"). 
  
 Recitals 

Owner owns Claremont Medical Plaza, located at 1601 Monte Vista Ave., Claremont, CA 91711, a 48,984 +/- square foot medical office
building (the “Property”). 
 Now therefore, the parties, for and in consideration of the promises and mutual
covenants, representations and warranties set forth in this Agreement, agree as follows: 

1.          Appointment.  Owner hires Manager as the property
manager for the Property, and Manager agrees to perform such services. 

2.          Manager Duties. 

2.1        General.  Manager, through Manager's designated employees and
agents, shall generally perform the services of a property manager in accordance with this Agreement and as determined from time to time by Owner and otherwise in the scope and quality generally comparable with the services performed by professional
medical office building managers in the Claremont area. Manager shall at all times conform to policies and programs established and approved by Owner. Manager shall be subject to the direction of Owner as agreed to at a meeting or in a writing
signed by Owner. Manager shall keep Owner informed as to all matters of concern to the Property. 

2.2        Specific Duties.  Without limiting the above, Manager's duties
shall include the following plus such other duties reasonably requested by Owner from time to time: 

2.2.1     Maintenance.  Manager shall periodically inspect the Property to advise Owner
of any maintenance and repairs that are necessary, and upon Owner's direction, Manager shall supervise such maintenance and repair. Manager shall submit for bid and negotiate contracts for periodic maintenance services, and shall direct and
supervise the performance of such services. 
 2.2.2     Construction.  Manager
shall manage installation of tenant improvements and the maintenance and repair of the Property (including major construction, rehabilitation and betterments) and repair or replace improvements due to wear, tear and casualty, including without
limitation: 
  

	 	(1)	 Selection and supervision of design and engineering consultants; 

 

	 	(2)	 supervision of tenant improvement design and construction; 

  

					
	Stonecreek\Claremont\PSA-10	  	32	  	

 Exhibit 10.3 

 
  

	 	(3)	 supervision of capital improvements; 

  

	 	(4)	 the inspection of the progress of repairs and maintenance, and supervision of the verification of the materials and labor being expended;

  

	 	(5)	 obtaining the necessary receipts, releases, waivers, discharges and assurances to keep the Property free from mechanics' and materialmen's liens and other
claims; and posting and recording notices of non-responsibility in connection with construction performed by tenants; 

  

	 	(6)	 requiring that all contractors and subcontractors performing work on the Property maintain insurance as specified by Owner from time to time; and

  

	 	(7)	 obtaining and maintaining all governmental permits and approvals necessary for use, operation and maintenance of the Property (provided that no permit or
approval creating a burden or obligation on the Owner will be enforceable without Owner's signature); and obtaining temporary and permanent certificates of occupancy for Property tenant improvements. 

2.2.3     Marketing and Leasing.  Subject to Owner's direction, Manager shall retain
broker(s) to market and lease space in the Property. Manager shall negotiate leases, subject to Owner’s final approval. Unless otherwise agreed to by Owner, Manager shall not act as a broker to conduct the above and shall not be paid any fees
or commissions except as specified in Section 4.3. 
 2.2.4     Tenant
Relations.  Manager shall supervise the moving in and out of tenants. Manager shall interface with tenants in an effort to maintain good tenant relations between tenants and Owner, and shall handle all tenant requests and complaints.
Manager will assist Owner in the collection of delinquent rents and eviction efforts if necessary, including the serving of three day notices and the like, and appearance at trial if necessary in any Owner-tenant litigation. 

2.2.5     Budget and Accounting.  Manager shall set up a bank account in Owner’s
name, with Manager having signatory authority (“Account”). Manager shall deposit all Property receipts of any type or source into the Account. Manager shall prepare periodic operating budgets for the Property for Owner's review and
approval (“Budget”). Manager shall pay directly from the Account any and all expenditures pursuant to the Budget (including Section 4 fees and expenses payable to Manager), provided that Manager may exceed any specific line
item in the Budget by up to 10% in the event of an emergency threatening imminent danger to person or property. Manager shall prepare and deliver quarterly and annual accounting reports on a cash basis along with a comparison to Budget. 

2.2.6     Special Projects and Services.  Manager shall conduct any special assignments
as requested by Owner and not customarily within the scope of daily property management functions, subject to an approved budget for such services. Examples of such services are property tax appeals; accounting, audit, and tax compliance; and
market, financial, and Property disposition analysis. 

2.2.7     Competition.  Manager manages or intends to manage other properties in the
vicinity of the Property. 

  

					
	Stonecreek\Claremont\PSA-10	  	33	  	

 Exhibit 10.3 

 

2.3        Independent Contractor.  Manager is acting hereunder as an
independent contractor. Within reasonable limits and subject to the needs of tenants and third parties doing business in and on the Property, Manager shall determine when and how to perform Manager's services hereunder. Manager may delegate any
duties hereunder to Manager's employees or agents. All payroll and related expenses for Manager's employees concerning the Property shall be incurred by Owner, as described in the Budget. Manager, at Manager's expense, shall provide all office
facilities necessary to perform Manager's duties hereunder. 

2.4        Indemnification.  Manager indemnifies, defends, protects and
holds harmless Owner from any claim, loss, cost, penalty or expense incurred as a result of the violation of law by, or the gross negligence or willful misconduct of, Manager or Manager's employees and agents. Owner indemnifies, defends, protects
and holds harmless Manager from any claim, loss, cost, penalty or expense incurred as a result of: (1) the violation of law by, or the negligence or willful misconduct of, Owner or Owner’s employees, contractors and agents; (2) the
ownership or operation of the Property, except as a result of Manager’s default or the gross negligence or willful misconduct of Manager or its employees and agents. 

3.          Term.  The term of this Agreement shall continue
until the earlier of: (1) 90 days after written notice of termination by Manager; (2) the date Owner ceases to own the Property; (3) a material default by Manager hereunder which is not cured within 30 days after written notice from
Owner; or (4) three (3) years from the Effective Date. On and after termination, Manager shall reasonably assist Owner in transferring management duties and Property files to Owner or the new manager, subject to payment by Owner to Manager
for Manager’s time and expenses in connection therewith, according to Manager’s fee schedule. 

Notwithstanding the above, expiration of the term in the prior paragraph shall only apply to Sections 2.1, 2.2 (excluding
2.2.3 with respect to the right to seek to let Suite 200 and the PVH Extension). Manager’s rights under Section 2.2.3 to seek to let Suite 200 and the Section 5 provisions applicable thereto shall continue through 2013, unless
terminated by the mutual approval of Manager and Owner. Manager’s rights under Section 2.2.3 to seek the PVH Extension, Section 4.3(3), and the Section 5 provisions applicable thereto, shall continue through 2015, unless
terminated by the mutual approval of Manager and Owner. 

4.          Management Fees. 

4.1        Owner shall pay Manager during the term hereof the greater of $4,500 per month
or 4.5% of the gross monthly collections generated from the Property. This fee is payable monthly in arrears within ten (10) days after the end of each month. 

4.2        Owner shall pay Manager 5% of all construction costs relating to tenant
improvements, capital improvements, and casualty repairs. This fee is payable monthly in arrears within ten (10) days after the end of each month. 
 4.3        Owner shall pay Manager leasing commissions as follows: 
  

	 	(1)	 for new tenants where a landlord broker is entitled to a commission, 1% of the aggregate base rents including tenant-reimbursed operating expenses for the
term; 

  

					
	Stonecreek\Claremont\PSA-10	  	34	  	

 Exhibit 10.3 

 
  

	 	(2)	 3% of the aggregate base rents including tenant-reimbursed operating expenses for the first 5 years, and 1.5% for any lease term periods thereafter for any:
(i) new leases for which Owner is not required to pay Owner’s listing broker; and (ii) renewal leases and exercised option extensions. 

  

	 	(3)	 4% of the aggregate base rents including tenant-reimbursed operating expenses for any extension executed by December 31, 2015 of the existing lease term
by Pomona Valley Hospital Medical Center for all or any portion of its premises at the Property (“PVH Extension”). 

 These fees are payable one-half at lease execution, and one-half at occupancy. 

4.4        Manager shall be entitled to reimbursement for un-reimbursed, out-of-pocket
costs paid by Manager on an arm's-length basis to unrelated parties. In addition, Owner shall reimburse Manager for reasonable lunch expenses with tenants incurred to maintain a good tenant relationship and not more often than quarterly with any one
tenant. 
 5.          General Provisions 

5.1        Notice.  All notices, elections, requests and other
communication hereunder shall be in writing and shall be deemed given (a) when personally delivered or delivered by reputable overnight courier service; or (b) two (2) business days after being deposited in the United States mail,
postage prepaid; or (c) when sent by facsimile before 5:00 p.m. Pacific time on a business day and otherwise on the next business day (as evidenced by a confirmation slip from sender’s fax machine showing the transmission date and time and
recipient’s fax number) are sent pursuant to Subsections (a) or (b) above on the same business day as faxing. Phone and email addresses are provided for convenience only and shall not constitute effective notice. Notices shall be
addressed as follows (or to such other person or at such other address, of which any party hereto shall have given written notice as provided herein): 
  

							
	 Manager:
	  	 StoneCreek Company
	 	
		  	 30212 Tomas, Suite 300
	 	
		  	Rancho Santa Margarita CA 92688	 	
		  	 Attn: Clayton M. Corwin
	 	
		  	 Phone
	 	 (949) 709-8080
	 	
		  	 Fax
	 	 (949) 709-8081
	 	
		  	 Email
	 	
ccorwin@stonecreekcompany.com

			
	 Owner:
	  	  
	 	
		  	  
	 	
		  	  
	 	
		  	  
	 	
		  	  
	 	
		  	  
	 	
		  	  
	 	
		  	  
	 	

 5.2        Entire Agreement.  This
Agreement shall constitute the entire agreement of the parties. All prior or contemporaneous agreements between the parties, whether written or oral, are merged herein and shall be of no force and effect. 

  

					
	Stonecreek\Claremont\PSA-10	  	35	  	

 Exhibit 10.3 

 

5.3        Amendment and Waivers.  No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provisions, whether or not similar, nor shall any waiver
constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 

5.4        Governing Law.  This Agreement is executed in and intended to
be performed in the State of California, and the laws of that state shall govern its interpretation and effect. 

5.5        Severability.  The parties hereto agree that if any paragraph,
section, sentence, clause or phrase contained in this Agreement shall become illegal, null or void or against public policy, for any reason, or shall be held by any court of competent jurisdiction to be incapable of being construed or limited in a
manner to make it enforceable, or is otherwise held by such court to be illegal, null or void or against public policy, the remaining paragraphs, sections, sentences, clauses or phrases contained in this Agreement shall not be affected thereby.

 5.6        Successors and Assigns.  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. Neither the Manager's rights nor obligations under this Agreement shall be assignable. 

5.7        Counterparts.  For the convenience of the parties hereto, this
Agreement may be executed in any number of identical original counterparts, each of which shall for all purposes be deemed an original, and all of such counterparts shall together constitute but one and the same agreement. 

5.8        Attorneys' Fees.  Should any party institute any action,
proceeding, suit, arbitration, appeal or other similar proceeding or other non-judicial dispute resolution mechanism ("Action") to enforce or interpret this Agreement or any provision hereof, for damages by reason of any alleged breach of
this Agreement or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in such Action shall be entitled to receive from the other party(s) all reasonable attorneys' fees, accountants' fees, expert witness fees, and
any and all other similar fees, costs and expenses incurred by the prevailing party in connection with the Action and preparations therefor ("Fees"). If any party files for protection under, or voluntarily or involuntarily becomes subject to,
any chapter of the United States Bankruptcy Code or similar state insolvency laws, any other party shall be entitled to any and all Fees incurred to protect such party's interest and other rights under this Agreement, whether or not such action
results in a discharge. 

  

					
	Stonecreek\Claremont\PSA-10	  	36	  	

 Exhibit 10.3 

 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the Effective Date. 
  

					
	 MANAGER:
	 	
	 StoneCreek Investment Corporation, a California corporation, dba StoneCreek Company

		
	 By:
	 	  

		 	  Clayton M. Corwin
	 	
		 	  President
	 	
		
	 OWNER:
	 	
	  
	 	 ,

 
					
	 a
	 	  
	 	

 
			
		
	 By:
	 	  

			
		
	 Name:
	 	  

			
		
	 Its:
	 	  

  

					
	Stonecreek\Claremont\PSA-10	  	37	  	

 Exhibit 10.3 

 
 Exhibit F Suite 200 lease draft 

  

					
	Stonecreek\Claremont\PSA-10	  	38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]