Document:

2015-01-11 8K Ex 101

			
					
						ook

					
					
						 

				
	
					
						 

					
					
						Exhibit 10.1

				

		
			 
		

		
			
		

		
			EMPLOYMENT AGREEMENT
		

		
			 
		

		
			THIS EMPLOYMENT AGREEMENT (this “Agreement”) between Vermillion, Inc., a Delaware corporation (the “Company”), and Laura Miller (“Executive,” and together with the Company, the “Parties”) is effective as of Executive’s first day of employment (the “Effective Date”).
		

		
			 
		

		
			WHEREAS, the Company and Executive desire to enter into a Employment Agreement;
		

		
			NOW, THEREFORE, the Parties agree as follows:
		

			
	
			
				 1.
			

			
	
			
			Position.  The Company will employ Executive as its Senior Vice President of Sales and Customer Experience on January 7th, 2015.  In this position, Executive will be expected to devote Executive’s full business time, attention and energies to the performance of Executive’s duties with the Company.  Executive may devote time to outside Board or advisory positions as pre-approved by the Company’s Board of Directors.  Executive will render such business and professional services in the performance of such duties, consistent with Executive’s position within the Company, as shall be reasonably assigned to Executive by the Company’s CEO or Board of Directors. Executive may perform his duties and responsibilities principally from Breaux Bridge, Louisiana, USA, but will travel as needed, including to Austin, Texas and to collaborator and partner locations, academic medical centers, conferences, and other locations as necessary or advisable in performance of Executive’s duties.

			
	
			
				 2.
			

			
	
			
			Compensation.  The Company will pay Executive a base salary of $250,000 on an annualized basis, payable in accordance with the Company’s standard payroll policies, including compliance with applicable tax withholding requirements.  In addition, Executive will be eligible for a bonus of up to 40% of Executive’s base salary (prorated for partial years) for achievement of reasonable performance-related goals to be defined by the Company’s CEO or Board of Directors. The exact payment terms of a bonus, if any, are to be set by the Compensation Committee of the Board of Directors, in its sole discretion.  Any such bonus will be payable to Executive within 30 days of receipt by the Compensation Committee of the Board of Directors of the Company’s final year-end financial statements. 

		
			On or as soon as administratively practicable after the Effective Date, the Company shall grant to Executive a stock option award with respect to 150,000 shares of common stock of the Company, subject to the terms and conditions of the Company’s Amended and Restated 2010 Stock Incentive Plan (the “Stock Incentive Plan”) and a stock option award agreement in a form substantially similar to that used by the Company for other senior executives of the Company (the “Option”).  The Option shall be granted as an incentive stock option to the maximum extent possible in accordance with the limitations set forth in Section 422 of the Internal Revenue Code, 
		

		 

 

		and the remainder of the Option shall be granted as a nonqualified stock option.  The Option shall have a per share exercise price equal to the closing price of a share of common stock of the Company as of the date of grant and, except as otherwise provided in the Stock Incentive Plan or the stock option award agreement, 1/4th of the shares subject to the Option shall become vested and exercisable on the first anniversary date of Executive’s first day of employment and then the remainder 1/36th monthly thereafter over a period of 36 consecutive months, subject to Executive’s continued employment with the Company through each such anniversary date.  To the extent the Option is vested and exercisable as of the date of Executive’s termination of employment, the Option shall remain exercisable for the period prescribed by the terms of the stock option award agreement; provided that if Executive’s employment is terminated by the Company without Cause or Executive resigns for Good Reason, as such terms are defined below, the Option shall remain exercisable until the earliest to occur of (i) the 12-month anniversary of the date of Executive’s termination of employment, (ii) the date on which the Options would have expired if Executive’s employment had continued through the full term of the Option and (iii) the date on which Executive breaches this Agreement, the PIIA or any other agreement between Executive and the Company or any of its affiliates.   
		

			
	
			
				 3.
			

			
	
			
			Benefits.  During the term of Executive’s employment, Executive will be entitled to the Company’s standard benefits covering employees at Executive’s level, including the Company’s group medical, dental, vision and term life insurance plans, section 125 plan, and 401(k) plan, as such plans maybe in effect from time to time, subject to the Company’s right to cancel or change the benefit plans and program it offers to its employees at any time.

			
	
			
				 4.
			

			
	
			
			At-Will Employment.  Executive’s employment with the Company is for an unspecified duration and constitutes “at will” employment.  This employment relationship may be terminated at any time, with or without good cause or for any or no cause, at the option either of the Company or Executive, with or without notice.

			
	
			
				 5.
			

			
	
			
			Termination without Cause or for Good Reason.  In the event the Company terminates Executive’s employment for reasons other than for Cause (as defined below) or Executive terminates his employment for Good Reason (as defined below) at any time following the Effective Date, and provided that Executive signs and does not revoke a standard separation agreement release of all claims against the Company, in a form reasonably satisfactory to the Company, does not breach any provision of this Agreement (including but not limited to Section 10 and Section 11 hereof), and continues to comply with the PIIA, as hereinafter defined, Executive shall be entitled to receive, subject to Section 13 below:

		
			(a)continued payment of Executive’s base salary as then in effect for a period of nine (9) months following the date of termination (the “Severance Period”), to be paid periodically in accordance with the Company’s standard payroll practices, provided that you shall immediately repay to the Company any amounts that you receive hereunder if within sixty days following termination of your employment you either have failed to execute the standard release described above or have revoked the general release after you execute it; and
		

		
			(b)continuation of Company health and dental benefits through COBRA premiums paid by the Company directly to the COBRA administrator during the Severance 
		

		 

 

		Period; provided, however, that such premium payments shall cease prior to the end of the Severance Period if Executive commences other employment with reasonably comparable or greater health and dental benefits.
		

		
			Executive will not be eligible for any bonus or other benefits not described above after termination, except as may be required by law.
		

			
	
			
				 6.
			

			
	
			
			Termination after Change of Control.  If Executive’s employment is terminated by the Company for reasons other than for Cause (as defined below) or by Executive for Good Reason (as defined below) within the twelve (12) month period following a Change of Control (as defined below), then, in addition to the severance obligations due to Executive under Section 5 above, one-hundred percent (100%) of any then-unvested shares under Company stock options then held by Executive will vest upon the date of such termination and the period of time for their exercise will be at the discretion of the Company, provided that no option shall be exercisable after expiration of its original term. It may very well be necessary for the Executive to exercise such shares on the day of Change in Control, and the Company shall use its best efforts to provide Executive with a reasonable period of advance written notice in such event. 

			
	
			
				 7.
			

			
	
			
			Definitions.  For purposes of this Agreement:

		
			“Cause” means termination of employment by reason of Executive’s: 
		

		
			material breach of this Agreement, the Proprietary Information and Inventions Agreement entered into between Executive and the Company (the “PIIA”) or any other confidentiality, invention assignment or similar agreement with the Company; 
		

		
			repeated negligence in the performance of duties or nonperformance or misperformance of such duties that in the good faith judgment of the Board of Directors of the Company adversely affects the operations or reputation of the Company;
		

		
			 refusal to abide by or comply with the good faith directives of the Company’s CEO or Board of Directors or the Company’s standard policies and procedures, which actions continue for a period of at least ten (10) days after written notice from the Company;
		

		
			violation or breach of the Company’s Code of Ethics, Financial Information Integrity Policy, Insider Trading Compliance Program, or any other similar code or policy adopted by the Company and generally applicable to the Company’s employees, as then in effect; 
		

		
			willful dishonesty, fraud, or misappropriation of funds or property with respect to the business or affairs of the Company; 
		

		
			conviction by or entry of a plea of guilty or nolo contendere, in a court of competent and final jurisdiction, for any crime which constitutes a felony in the jurisdiction involved; or 
		

		

		

		 

 

		abuse of alcohol or drugs (legal or illegal) that, in the Board of Director’s reasonable judgment, materially impairs Executive’s ability to perform Executive’s duties.
		

		
			“Change of Control” means:
		

		
			after the date hereof, any “person.” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; or 
		

		
			the date of the consummation of a merger or consolidation of the Company with any other corporation or entity that has been approved by the stockholders of the Company, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
		

		
			the date of the consummation of the sale or disposition of all or substantially all of the Company’s assets.
		

		
			“Good Reason” means, the occurrence of any one or more of the following events, without Executive’s consent, which continues uncured for a period of not less than thirty (30) days following written notice given by Executive to the Company within thirty (30) days following the occurrence of a material and adverse change in Executive’s title or duties (excluding any changes in such duties resulting from the Company becoming part of a larger entity pursuant to a Change of Control) or in Executive’s base salary.
		

		
			In addition, Executive must actually terminate Executive’s employment with the Company within six months following the initial existence of the condition described above giving rise to Good Reason.
		

		
			 
		

		
			“Separation from Service” or “Separates from Service” shall mean Executive’s termination of employment, as determined in accordance with Treas. Reg. § 1.409A-1(h).  Executive shall be considered to have experienced a termination of employment when the facts and circumstances indicate that Executive and the Company reasonably anticipate that either (i) no further services will be performed for the Company after a certain date, or (ii) that the level of bona fide services Executive will perform for the Company after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by Executive (whether as an employee or independent contractor) over the immediately preceding 36-month period (or the full period of services to the Company if Executive has been providing services to the Company for less than 36 months).  If Executive is on military leave, sick leave, or other bona fide leave of absence, the employment relationship between Executive and the Company shall be treated as continuing intact, provided that the period of such leave does not exceed six months, or if longer, so long as Executive retains a right to reemployment with the Company under an applicable statute or by 
		

		 

 

		contract.  If the period of a military leave, sick leave, or other bona fide leave of absence exceeds six months and Executive does not retain a right to reemployment under an applicable statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Agreement as of the first day immediately following the end of such six-month period.  In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that Executive will return to perform services for the Company.
		

			
	
			
				 8.
			

			
	
			
			Employment, Confidential Information and Invention Assignment Agreement.  As a condition of Executive’s employment, Executive shall complete, sign and return the Company’s standard form of Proprietary Information and Inventions Agreement. 

			
	
			
				 9.
			

			
	
			
			Non Contravention.  Executive represents to the Company that Executive’s signing of this Agreement, the PIIA, the issuance of stock options to Executive, and Executive’s commencement of employment with the Company does not violate any agreement Executive has with Executive’s previous employer and Executive’s signature confirms this representation.

			
	
			
				 10.
			

			
	
			
			Conflicting Employment.  Executive agrees that, during the term of Executive’s employment with the Company and during the Severance Period, Executive will not engage in any other employment, occupation, consulting or other business activity competitive with or directly related to the business in which the Company is now involved or becomes involved during the term of Executive’s employment, nor will Executive engage in any other activities that conflict with Executive’s obligations to the Company. Executive acknowledges that compliance with the obligations of this paragraph is a condition to Executive’s right to receive the severance payments set forth in paragraph 5 above.

			
	
			
				 11.
			

			
	
			
			Nonsolicitation.  From the date of this Agreement until 12 months after the termination of this Agreement (the “Restricted Period”), Executive will not, directly or indirectly, solicit or encourage any employee or contractor of the Company or its affiliates to terminate employment with, or cease providing services to, the Company or its affiliates. During the Restricted Period, Executive will not, whether for Executive’s own account or for the account of any other person, firm, corporation or other business organization, solicit or interfere with any person who is or during the period of Executive’s engagement by the Company was a collaborator, partner, licensor, licensee, vendor, supplier, customer or client of the Company or its affiliates to the Company’s detriment. Executive acknowledges that compliance with the obligations of this paragraph is a condition to Executive’s right to receive the severance payments set forth in paragraph 5 above.

			
	
			
				 12.
			

			
	
			
			Arbitration and Equitable Relief.

			
	
			
				(a)
			In consideration of Executive’s employment with the Company, its promise to arbitrate all employment related disputes and Executive’s receipt of the compensation and other benefits paid to Executive by the Company, at present and in the future, EXECUTIVE AGREES THAT ANY AND ALL CONTROVERSIES, CLAIMS, OR DISPUTES WITH ANYONE (INCLUDING THE COMPANY AND ANY EMPLOYEE, OFFICER, DIRECTOR, STOCKHOLDER OR. BENEFIT PLAN OF THE COMPANY IN THEIR CAPACITY AS SUCH OR OTHERWISE) ARISING OUT OF, RELATING TO, OR RESULTING FROM 
		

		 

 

			EXECUTIVE’S EMPLOYMENT WITH THE COMPANY OR THE TERMINATION OF EXECUTIVE’S EMPLOYMENT WITH THE COMPANY, INCLUDING ANY BREACH OF THIS AGREEMENT, SHALL BE SUBJECT TO BINDING ARBITRATION UNDER THE ARBITRATION RULES SET FORTH IN TEXAS CIVIL PRACTICE AND REMEDY CODE SECTION 171.001 THROUGH SECTION 171.098 (THE “RULES”) AND PURSUANT TO TEXAS LAW. Disputes which Executive agrees to arbitrate, and thereby agree to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the California Fair Employment and Housing Act, the California Labor Code, claims of harassment, discrimination or wrongful termination and any statutory claims. Executive further understands that this agreement to arbitrate also applies to any disputes that the Company may have with Executive,

		
			Executive agrees that any arbitration will be administered by the American Arbitration Association (“AAA”) and that the neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes. Executive agrees that the arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Executive also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive shall pay the first $125.00 of any filing fees associated with any arbitration Executive initiates. Executive agrees that the arbitrator shall administer and conduct any arbitration in a mariner consistent with the Rules and that to the extent that the AAA’s National Rules for the Resolution of Employment Disputes conflict with the Rules, the Rules shall take precedence. Executive agrees that the decision of the arbitrator shall be in writing.
		

		
			Except as provided by the Rules and this Agreement, arbitration shall be the sole, exclusive and final remedy for any dispute between Executive and the Company. Accordingly, except as provided for by the Rules and this Agreement, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.
		

		
			In addition to the right under the Rules to petition the court for provisional relief, Executive agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of the PIIA between Executive and the Company or any other agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. Executive understands that any breach or threatened breach of such an agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefor and both parties hereby consent to the issuance of an injunction. In the event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys fees.
		

		

		

		 

 

		Executive understands that this Agreement does not prohibit Executive from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission or the Workers’ Compensation Board. This Agreement does, however, preclude Executive from pursuing court action regarding any such claim.
		

		
			Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial. Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement.
		

			
	
			
				 13.
			

			
	
			
			Taxes.  All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.  Notwithstanding the foregoing, Executive is solely responsible and liable for the satisfaction of any federal, state, province or local taxes that may arise with respect to this Agreement (including any taxes arising under Section 409A of the Internal Revenue Code (the “IRC”).  Neither the Company nor any of its employees, officers, directors, or service providers shall have any obligation whatsoever to pay such taxes, to prevent Executive from incurring them, or to mitigate or protect Executive from any such tax liabilities.  Notwithstanding anything in this Agreement to the contrary, if any amounts that become due under this Agreement on account of Executive’s termination of employment constitute “nonqualified deferred compensation” within the meaning of IRC Section 409A, payment of such amounts shall not commence until Executive incurs a Separation from Service.  If, at the time of Executive’s termination of employment under this Agreement, Executive is a “specified employee” (within the meaning of IRC Section 409A), any amounts that constitute “nonqualified deferred compensation” within the meaning of IRC Section 409A that become payable to Executive on account of Executive’s Separation from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth calendar month beginning after Executive’s Separation from Service (the “409A Suspension Period”). Within 14 calendar days after the end of the 409A Suspension Period, Executive shall be paid a lump sum payment in cash equal to any payments delayed because of the preceding sentence. Thereafter, Executive shall receive any remaining benefits as if there had not been an earlier delay.  Each payment due under this Agreement is treated as a separate payment for purposes of Treasury Regulations Sections 1.409A-1((b)(4)(F) and 1.409A-2(b)(2).

			
	
			
				 14.
			

			
	
			
			Successors of the Company.  The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company. This Agreement shall be assignable by the Company in the event of a merger or similar transaction in which the Company is not the surviving entity, or of a sale of all or substantially all of the Company’s assets.

			
	
			
				 15.
			

			
	
			
			Enforceability; Severability.  If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be 
		

		 

 

			deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be.

			
	
			
				 16.
			

			
	
			
			Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Texas without giving effect to Texas choice of law rules. This Agreement is deemed to be entered into entirely in the State of Texas.  This Agreement shall not be strictly construed for or against either party.

			
	
			
				 17.
			

			
	
			
			No Waiver.  No waiver of any term of this Agreement constitutes a waiver of any other term of this Agreement.

			
	
			
				 18.
			

			
	
			
			Amendment To This Agreement.  This Agreement may be amended only in writing by an agreement specifically referencing this Agreement, which is signed by both Executive and an executive officer or member of the Board of Directors of the Company authorized to do so by the Board by resolution.

			
	
			
				 19.
			

			
	
			
			Headings.  Section headings in this Agreement are for convenience only and shall be given no effect in the construction or interpretation of this Agreement.

			
	
			
				 20.
			

			
	
			
			Notice.  All notices made pursuant to this Agreement, shall be given in writing, delivered by a generally recognized overnight express delivery service, and shall be made to the following addresses, or such other addresses as the Parties may later designate in writing:

		
			If to the Company:
		

		
			Vermillion, Inc.
		

		
			12117 Bee Caves Road, Building Three, Suite 100
		

		
			Austin, Texas, 78738
		

		
			 
		

		
			If to Executive:
		

		
			 
		

		
			Laura Miller
		

		
			XXXXXXXXX
		

		
			XXXXXXXXX
		

		
			 
		

			
	
			
				 21.
			

			
	
			
			Expense Reimbursement.  The Company shall promptly reimburse Executive reasonable business expenses incurred by Executive in furtherance of or in connection with the performance of Executive’s duties hereunder, including expenditures for travel, in accordance with the Company’s expense reimbursement policy as in effect from time to time; provided that any and all reimbursements hereunder shall be requested and made within one year after being incurred.

		 

 

			
	
			
				 22.
			

			
	
			
			General; Conflict.  This Agreement and the PIIA, when signed by Executive, set forth the terms of Executive’s employment with the Company and supersede any and all prior representations and agreements, whether written or oral.

		
			[Signature Page Follows]
		

		

		

		 

 

		VERMILLION, INC.
		

		
			a Delaware corporation
		

		
			 
		

		
			 
		

		
			By:/s/ Valerie Palmieri
		

		
			Name: Valerie Palmieri
		

		
			Title:President & Chief Executive Officer
		

		
			
		

		
			 
		

		
			ACCEPTED AND AGREED TO this
		

		
			7th day of January, 2015.
		

		
			 
		

		
			 
		

		
			/s/ Laura Miller
		

		
			Laura MillerExhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

BY AND BETWEEN

 

CORNERSTONE OPERATING PARTNERSHIP, L.P.

 

AND

 

THE RESIDENCES AT SHERBURNE COMMONS,
INC.

 

    	 

    	 

    

  

	ARTICLE 1:	DEFINITIONS	4
	 	 	 
	1.1.	Definitions	4
	 	 	 
	ARTICLE 2:	CONSIDERATION, DEPOSIT AND ESCROW PROVISIONS	4
	 	 	 
	2.1.	Purchase Price	4
	 	 	 
	2.2.	Escrow Agent	4
	 	 	 
	2.3.	Escrow Provisions	4
	 	 	 
	2.4.	Payment of Monies	5
	 	 	 
	ARTICLE 3:	ACCESS; INSPECTIONS	5
	 	 	 
	3.1.	Seller’s Delivery of Specified Documents	5
	 	 	 
	3.2.	Access and Inspection Rights	5
	 	 	 
	3.3.	Title and Survey Review	6
	 	 	 
	3.4.	Condition of Property; AS-IS SALE	5
	 	 	 
	ARTICLE 4:	OPERATIONS; RISK OF LOSS; LICENSING	7
	 	 	 
	4.1.	Ongoing Operations	7
	 	 	 
	4.2.	Damage	9
	 	 	 
	4.3.	Condemnation	9
	 	 	 
	4.4.	Operations Transfer Agreement	9
	 	 	 
	ARTICLE 5:	CLOSING	10
	 	 	 
	5.1.	Closing	10
	 	 	 
	5.2.	Conditions to the Parties’ Obligations to Close	10
	 	 	 
	5.3.	Failure of Condition	12
	 	 	 
	5.4.	Seller’s Deliveries	12
	 	 	 
	5.5.	Buyer’s Deliveries	13
	 	 	 
	5.6.	Possession	14

 

    	 

    	 

    

  

	ARTICLE 6:	PRORATIONS; COSTS; ADJUSTMENTS	14
	 	 	 
	6.1.	Prorations	14
	 	 	 
	6.2.	Sales, Transfer, and Documentary Taxes; Closing Costs	14
	 	 	 
	6.3.	Brokerage Commissions	15
	 	 	 
	6.4.	Post-Closing Corrections	15
	 	 	 
	6.5.	No Other Obligations	15
	 	 	 
	ARTICLE 7:	REPRESENTATIONS AND WARRANTIES	15
	 	 	 
	7.1.	Seller’s Representations and Warranties	15
	 	 	 
	7.2.	Buyer’s Representations and Warranties	19
	 	 	 
	7.3.	Indemnity	20
	 	 	 
	7.4.	Survival of Representations, Warranties and Indemnity; Holdback Deposit	21
	 	 	 
	ARTICLE 8:	DEFAULT AND REMEDIES	20
	 	 	 
	8.1.	Buyer’s Remedies	22
	 	 	 
	8.2.	Seller’s Remedies	22
	 	 	 
	8.3.	Other Expenses	22
	 	 	 
	ARTICLE 9:	ADDITIONAL AGREEMENTS	22
	 	 	 
	9.1.	Partial Releases of Purchase Money Mortgage	22
	 	 	 
	9.2.	Repurposing Cottages	22
	 	 	 
	9.3.	Settlement of LTA	23
	 	 	 
	ARTICLE 10:	MISCELLANEOUS	23
	 	 	 
	10.1.	Parties Bound	23
	 	 	 
	10.2.	Headings	23
	 	 	 
	10.3.	Invalidity and Waiver	23
	 	 	 
	10.4.	Governing Law	23

 

    	-2-

    	 

    

  

	10.5.	Survival	23
	 	 	 
	10.6.	No Third Party Beneficiary	23
	 	 	 
	10.7.	Entirety and Amendments	23
	 	 	 
	10.8.	Time	24
	 	 	 
	10.9.	Confidentiality	24
	 	 	 
	10.10.	Enforcement Expenses	24
	 	 	 
	10.11.	Notices	24
	 	 	 
	10.12.	Construction	24
	 	 	 
	10.13.	Calculation of Time Periods	24
	 	 	 
	10.14.	Execution in Counterparts	25
	 	 	 
	10.15.	Further Assurances	25
	 	 	 
	10.16.	Venue; Arbitration	25
	 	 	 
	10.17.	Bulk Sales	25

 

PURCHASE
AND SALE AGREEMENT

 

This Purchase and Sale Agreement (this
“Agreement”) is made as of November 4, 2014, by and between Cornerstone Operating Partnership, L.P., a Delaware
limited Partnership (“Seller”), and The Residences at Sherburne Commons, Inc., a Massachusetts c. 180 non-profit
corporation (“Buyer”).

 

RECITALS

 

A.           Seller
is the holder of Seller's Prior Mortgage Security and upon completion of the Foreclosure Action at which Seller is the highest
bidder, Seller shall be the owner of the Property which includes the Senior Housing Facility described on Exhibit B attached
hereto; and

 

B.           Upon
the successful completion of the Foreclosure Action as aforesaid, Seller desires to sell and Buyer desires to purchase the Property
upon and subject to the terms and conditions set forth herein.

 

    	-3-

    	 

    

  

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Seller hereby agrees to sell and Buyer hereby agrees to purchase
the Property upon and subject to the following terms and conditions:

 

ARTICLE
1: DEFINITIONS

 

1.1.         Definitions.
Initially capitalized terms which are used but not otherwise defined in this Agreement
shall have the meanings ascribed to them in Exhibit A attached hereto and incorporated herein by this reference.

 

ARTICLE 2: CONSIDERATION,
AND ESCROW PROVISIONS

 

2,1 Purchase Price.
There shall be no deposit paid with respect this Agreement. The Purchase Price, subject to the prorations and adjustments set forth
herein, shall be paid by delivery of the Purchase Money Note at the time of Closing.

2.2 [RESERVED]

 

2.3 Escrow Provisions.
Escrow Agent agrees to hold, keep and deliver the Purchase Money Note and all other sums or documents delivered to it pursuant
hereto in accordance with the terms and provisions of this Agreement. Escrow Agent shall not be entitled to any fees or compensation
for its services hereunder other than its customary one-time escrow fee. Escrow Agent shall be liable only to hold said sums and
deliver the same to the parties named herein in accordance with the provisions of this Agreement, it being expressly understood
that by acceptance of this Agreement Escrow Agent is acting in the capacity of a depository only and shall not be liable or responsible
to anyone for any damages, losses or expenses unless same shall have been caused by the gross negligence or willful malfeasance
of Escrow Agent. In the event of any disagreement between Buyer and Seller resulting in any adverse claims and demands being made
in connection with or for the monies involved herein or affected hereby, Escrow Agent shall be entitled to refuse to comply with
any such claims or demands so long as such disagreement may continue; and in so refusing Escrow Agent shall make no delivery or
other disposition of any of the monies then held by it under the terms of this Agreement, and in so doing Escrow Agent shall not
become liable to anyone for such refusal; and Escrow Agent shall be entitled to continue to refrain from acting until (a) the
rights of the adverse claimants shall have been finally adjudicated in a court of competent jurisdiction of the monies involved
herein or affected hereby, or (b) all differences shall have been adjusted by agreement between Seller and Buyer, and Escrow
Agent shall have been notified in writing of such agreement signed by the parties hereto. Escrow Agent shall not be required to
disburse any of the monies held by it under this Agreement unless in accordance with either a joint written instruction of Buyer
and Seller or an Escrow Demand from either Buyer or Seller in accordance with the provisions hereinafter. Upon receipt by Escrow
Agent from either Buyer or Seller (the “Notifying Party”) of any notice or request (an “Escrow Demand”)
to perform any act or disburse any portion of the monies held by Escrow Agent under the terms of this Agreement, Escrow Agent shall
give written notice to the other party (the “Notified Party”). If within five (5) days after the giving of such
notice, Escrow Agent does not receive any written objection to the Escrow Demand from the Notified Party, Escrow Agent shall comply
with the Escrow Demand. If Escrow Agent does receive written objection from the Notified Party in a timely manner, Escrow Agent
shall take no further action until the dispute between the parties has been resolved pursuant to either clause (a) or (b) above.
Further Escrow Agent shall have the right at all times to pay all sums held by it (i) to the appropriate party under the terms
hereof, or (ii) into any court of competent jurisdiction after a dispute between or among the parties hereto has arisen, whereupon
Escrow Agent's obligations hereunder shall terminate. Seller and Buyer, jointly and severally agree to indemnify and hold harmless
said Escrow Agent from any and all costs, damages and expenses, including reasonable attorneys' fees, that said Escrow Agent may
incur in compliance with and in good faith in accordance with the terms of this Agreement; provided, however, this indemnity shall
not extend to any act of gross negligence or willful malfeasance on the part of the Escrow Agent.

 

    	-4-

    	 

    

  

2.4 Payment of
Monies. Any monies payable under this Agreement, unless otherwise specified in this Agreement, shall be paid by wire transfer
or certified or cashier’s check.

 

ARTICLE
3:   ACCESS; INSPECTIONS

 

3.1.         Seller’s
Delivery of Specified Documents. On or before the date hereof, Seller has delivered or made available to Buyer true, correct
and complete originals or copies of each item described in Exhibit C attached hereto (the "Seller Deliverables")
in Seller's possession or control.

 

3.2.         Access
and Inspection Rights. Buyer and its agents, employees and representatives,
contractors and consultants, all at Buyer's sole cost, shall at any time, and from time to time, between the Effective Date and
the Closing Date, have reasonable access during normal business hours to the Facility and all books and records for the Facility
that are in Seller’s or the Existing Manager’s possession or control for the purpose of conducting surveys, inspections,
tests and studies, including, without limitation, engineering, geotechnical and environmental inspections and tests; provided,
however, that Buyer will work directly with the Existing Manager to conduct any and all investigations necessary of all books and
records for the Facility that are in the possession or control of the Existing Manager. In the course of its investigation of the
Property, Buyer may make inquiries to third parties, including, without limitation, lenders, contractors, Existing Manager (including,
without limitation, employees thereof), parties to any service contracts affecting the Facility, and municipal, local and other
government officials and representatives. Seller shall cooperate but at no cost to Seller with Buyer's due diligence during normal
business hours so long as Buyer gives at least forty-eight (48) hours' notice to Seller and the Existing Manager, conducts such
due diligence during normal business hours and is not disruptive to the operation of the business at the Facility or the quiet
enjoyment thereof by its residents, and shall be paid for by Buyer as and when due. Buyer may make such environmental investigations
as it deems appropriate but at no higher level than a Phase I environmental report, unless Seller shall otherwise agree in advance.
Buyer shall indemnify, defend, protect and hold Seller harmless from any and all claims, liabilities, losses, expenses (including
reasonable attorneys' fees), damages, including those for injury to person or to the Property, arising out of or relating to Buyer's
due diligence activities (except for any pre-existing conditions). If Buyer is not satisfied in its sole discretion with any of
survey, inspection, test or study or with any other matter concerning the Property, then Buyer may terminate this Agreement by
written notice given to Seller on before the date of expiration of the Due Diligence Period in which case neither party shall have
any further rights or obligations pursuant to this Agreement, except those that survive the termination of this Agreement as expressly
stated herein. If the written notice of termination is not given to Seller and the Escrow Holder prior to the expiration of the
Due Diligence Period, then (a) any due diligence contingency, and any and all objections with respect to the review and inspection
of the Property, shall be deemed to have been waived by Buyer for all purposes hereof; provided, however, that Buyer's closing
contingencies set forth in Section 5.2(a) below shall remain. If this Agreement is terminated pursuant to this Section 3.2, the
cost for cancellation of Escrow and all title company costs shall be borne solely by Buyer

 

    	-5-

    	 

    

  

3.3.         Title
and Survey Review.

 

(a)          Buyer
shall have the right to obtain a title commitment for owner's title insurance policy (the "Title Commitment")
and survey of the Real Property (the "Survey"). No later than ten (10) business days prior to the expiration of
the Due Diligence Period, Buyer shall give notice to Seller of any objection to any exception or other matter shown in the Title
Commitment or Survey on or before the date of expiration of the Due Diligence Period. Within five (5) business days of Seller's
receipt of Buyer's notice of objection(s), Seller shall notify Buyer in writing of Seller's election to either (i) remove such
exceptions (in which case Buyer's objections shall be deemed waived) but Seller shall incur no cost in connection therewith, or
(ii) terminate this Agreement, provided, however, Seller shall have no obligation to cure an objection relating to the Survey.
Seller's failure to make an election shall be deemed an election to terminate. Without limiting the foregoing, Seller shall be
obligated to fully discharge on or before Closing all mortgages, security interests and other monetary liens and encumbrances of
a definite and ascertainable amount (each a "Monetary Lien"). Notwithstanding the foregoing, all Monetary Liens
affecting the Property which are junior in right to Seller's Prior Mortgage Security shall be extinguished by the completion of
the Foreclosure Action which shall be full satisfaction of the foregoing obligation to discharge the same. In the event that any
additional title exceptions are discovered after the reports are issued, then if Buyer is not willing to accept such exceptions
as-is, then Seller shall elect in writing to either eliminate such exceptions (in which case this Agreement shall remain in effect)
or terminate this Agreement. If Buyer fails to give written notice to Seller of any objection to title or survey within the Due
Diligence Period, then Buyer shall be deemed to have approved the state of title and survey as of the date of such title and survey
reports are issued, except for Monetary Liens.

 

(b)          If
Seller willfully fails to cure an objection to title or survey in the manner set forth above, then
Buyer may elect, on or prior to the Closing Date, to (i) terminate this Agreement and no
party shall have any further obligations hereunder, except as specifically set forth herein, or (ii) accept the Property subject
to such objections and proceed to Closing. If Buyer makes no such election, then Buyer shall be deemed to have elected to waive
its right to terminate this Agreement as provided above in this Section 3.3(b).

 

    	-6-

    	 

    

  

3.4.         Condition
of Property; AS-IS SALE. BUYER ACKNOWLEDGES AND REPRESENTS THAT THEY HAVE CONDUCTED OR WILL CONDUCT THEIR OWN INSPECTION
AND INVESTIGATION OF THE PROPERTY AND THE GROUND LEASE, AND OF PUBLIC RECORDS PERTAINING TO SELLER AND THE FACILITY AND AGREES
TO ACCEPT AT CLOSING, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES CONTAINED IN SECTION 7.1, THE PROPERTY AND GROUND LEASE IN
ITS "AS IS, WHERE IS" CONDITION AS OF THE EFFECTIVE DATE, AND "WITH ALL FAULTS"; AND FURTHER ACKNOWLEDGES AND
AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE AND DOES
NOT MAKE, AND SELLER HEREBY EXPRESSLY DISCLAIMS, ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS OR IMPLIED WITH RESPECT TO THE PROPERTY OR THE GROUND LEASE, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE AND REPRESENTATIONS OR WARRANTIES WITH RESPECT TO (A) THE COMPLIANCE OF THE PROPERTY, INCLUDING
ITS USE OR OPERATION, WITH THE AMERICANS WITH DISABILITIES ACT, ANY OTHER DISCRIMINATION LAW, OR ANY FEDERAL, STATE OR LOCAL LAW,
RULE OR REGULATION RELATING TO THE LICENSING AND CERTIFICATION OF THE PROPERTY AS A SENIOR HOUSING FACILITY OR PARTICIPATION IN
THE MEDICARE AND MEDICAID PROGRAMS, (B) THE ASSIGNMENT OR TRANSFERABILITY OF ANY OF THE GOVERNMENTAL LICENSES, CERTIFICATES OR
PERMITS TO OPERATE THE PROPERTY AS A SENIOR HOUSING FACILITY, AND (C) THE EFFECT ON THE PROPERTY, CONDITION OF THE PROPERTY (FINANCIAL
OR OTHERWISE), OR THE RESULTS OF ANY ENACTED, PUBLISHED OR REPORTED LAWS, RULES, REGULATIONS OR JUDICIAL OR ADMINISTRATIVE DECISIONS
OR ACTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL AGENCY HAVING REGULATORY OR OTHER AUTHORITY (WHETHER HAVING RETROACTIVE OR
PROSPECTIVE EFFECT) RESPECTING MATTERS OF LICENSURE, SURVEY, OR REIMBURSEMENT. THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE THE
CLOSING.

 

ARTICLE
4: OPERATIONS; RISK OF LOSS; LICENSING

 

4.1.         Ongoing
Operations. From the Effective Date through the Closing Date:

 

(a)          Operation
of Property; Construction. Seller shall continue to cause the operation of the Property by the Existing Manager and shall not
terminate the Existing Management Agreement with the Existing Manager; provided, however, that the parties hereto acknowledge that
they might enter into future discussions relating to the replacement of the Existing Manager with an Affiliate of Buyer, but any
definitive arrangement relating thereto will be subject to the mutual written agreement of the parties. Seller shall not make (or
suffer or permit to be made) any renovations, alterations, or capital expenditures to the Facility or any portion thereof costing
more than $10,000, individually or in the aggregate, or enter into any contracts or agreements (whether binding or not) regarding
any such renovations, alterations, or capital expenditures. Seller will perform all of the obligations of Seller under the Ground
Lease and the Existing Management Agreement.

 

    	-7-

    	 

    

  

(b)          Ground
Lease. Seller shall cause compliance in all material respects with the terms and conditions of the Ground Lease and shall not
do or permit anything to be done, the doing of which, or refrain from doing anything, the omission of which, will be grounds for
declaring a default or forfeiture of the Ground Lease. Seller shall not modify, cancel, change, waive, supplement, alter or amend
the Ground Lease in any respect, subject, however, to seeking the amendment to the Ground Lease as contemplated in Exhibit I.

 

(c)          Listings
and Other Offers. Except in connection with the Foreclosure Action and in such manner as Seller shall deem appropriate in the
circumstances or required by law, Seller will not list the Property with any broker or otherwise solicit
or make or accept any offers to sell all or any part of the Property or any direct or indirect interest therein, engage in any
discussions or negotiations with any third party with respect to the sale or other disposition of the Property or any direct or
indirect interest therein, or enter into any contracts or agreements (whether binding or not) regarding any disposition of all
or any part of the Property or any direct or indirect interest therein, except as provided in Section 4.1(a) above.

 

(d)          Removal
and Replacement of Tangible Personal Property; Transfer or Conveyance of Other Property. Seller will not remove or suffer or
permit to be removed on Seller's behalf any Personal Property from the Facility except as
may be required for necessary repair or replacement in the ordinary course of business. Without limiting the foregoing,
all repairs and replacements shall be of equivalent quality and quantity
as existed as of the time of removal of the applicable Personal Property. Except as permitted by the preceding sentence, Seller
shall not make (or suffer or permit to be made on Seller's behalf)
any transfers or conveyances of the Property. 

 

(e)          Maintenance
of Insurance. Seller shall carry commercial general liability insurance in the amounts it currently holds and property damage
insurance for the full replacement value of the Improvements through the Closing Date. Seller shall not allow any breach, default,
termination or cancellation of any such insurance policies or agreements to occur or exist prior to Closing.

 

(f)          [RESERVED]

 

(g)          Approvals.
Seller and Buyer shall work diligently and cooperate with each other to obtain all waivers, consents, approvals and authorizations
required in connection with the transactions contemplated hereunder, including without limitation those required with respect to
the Ground Lease and all licenses and approvals required by governmental agencies charged with regulating or licensing senior housing
facilities.

 

(h)          Agreements
to Effect Prohibited Actions. Seller will not enter into any contracts
or agreements (whether binding or not) regarding any of the matters prohibited by paragraphs above.

 

    	-8-

    	 

    

  

4.2.         Damage.
Risk of loss with respect to the Real Property up to and including the Closing Date shall be borne by Seller. 
Seller shall promptly give Buyer written notice of any damage to the Facility, describing such damage, stating whether such damage
and loss of rents is covered by insurance and the estimated cost of repairing such damage. In the event of any material damage
(described below) to or destruction of the Facility or any portion thereof, Buyer may, at its option, by notice to Seller given
within five (5) business days after Seller has provided the above described notice to Buyer together with all relevant information
concerning the nature and extent of such damage (and if necessary the Closing Date shall be extended to give Buyer the full five
(5) business day period to make such election): (i) terminate this Agreement, in
which event no party shall have any further obligations hereunder,
except as expressly set forth herein, or (ii) proceed under this Agreement as to all of the Property, receive any insurance
proceeds (including any rent loss insurance applicable to any period on and after the Closing Date) due Seller as a result of such
damage or destruction and assume responsibility for such repair. If Buyer fails to timely make such election, Buyer shall be deemed
to have elected to proceed under clause (ii) above. If the Facility is not materially damaged, then (A) Buyer shall not have
the right to terminate this Agreement, (B) Seller shall, to the extent requested and directed by Buyer, repair the damage before
the Closing in a manner reasonably satisfactory to Buyer utilizing any available insurance proceeds, and (C) at Closing, Buyer
shall receive any insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing Date)
due Seller as a result of such damage or destruction. To the extent Seller has incurred reasonable costs in effecting the repairs
requested and directed in writing by Buyer (which costs have not been assumed by Buyer), Seller shall be paid a portion of such
insurance proceeds in an amount equal to such costs. “Material damage” and “materially damaged”
means, with respect to the Facility, damage (x) which, in Buyer’s reasonable estimation, exceeds $150,000 to repair, or (y)
which, in Buyer’s reasonable estimation, will take longer than ninety (90) days to repair or restore.

 

4.3.         Condemnation.
In the event any proceedings in eminent domain are contemplated, threatened or instituted by
any body having the power of eminent domain with respect to the Real Property or any portion thereof, Buyer may, at its option,
by notice to Seller given within ten (10) business days after Seller provides written notice to Buyer of such proceedings together
with all relevant information concerning such proceedings (and if necessary the Closing Date shall be extended to give Buyer the
full ten (10) business day period to make such election): (i) terminate this Agreement, in
which event no party shall have any further obligations thereunder,
except as expressly set forth herein, or (ii) proceed under this Agreement as to all of the Property, in which event Seller
shall, at the Closing, apply such of the proceeds from such award in prepayment of the Purchase Money Note and upon satisfaction
thereof, assign to Buyer its entire right, title and interest in and to any remaining balance of any condemnation award Seller
shall have the sole right during the pendency of this Agreement to negotiate and otherwise deal with the condemning authority in
respect of such matter. If Buyer fails to timely make such election, Buyer shall be deemed to have elected to proceed under clause (ii)
above.

 

4.4.         Operations
Transfer Agreement. Seller and Buyer shall jointly use commercially reasonable efforts, but without expense to Seller,
to cause the Operations Transfer Agreement (in the form approved as of the date hereof by Buyer) to be executed (with all schedules
and exhibits thereto completed) by the parties thereto (other than Buyer, who agrees to execute the Operations Transfer Agreement
promptly following its execution by the other parties thereto). The execution and delivery of the Operations Transfer Agreement
by the other parties thereto shall be a condition precedent to Buyer’s obligation to close on its purchase of the Property.

 

    	-9-

    	 

    

  

ARTICLE
5: CLOSING

 

5.1.         Closing.
The consummation of the transactions contemplated herein (the “Closing”) shall occur on the date that is the
[tenth] (10th) business day after the later to occur of (a) final completion of the Foreclosure Action wherein Seller shall be
the grantee named in a foreclosure deed as a result thereof or (b) the Town Lease Amendment Approval Date. The date of Closing
shall be referred to herein as the “Closing Date.” Closing
shall be effectuated through an escrow with the Escrow Agent. Buyer and Seller shall execute such supplemental escrow instructions
as may be reasonably requested by either party or Escrow Agent to comply with the terms of this Agreement, so long as such instructions
are not in conflict with this Agreement. In addition, Seller shall have the right to extend the Closing Date for up to thirty (30)
days if necessary in connection with the final completion of the Foreclosure Action vesting leasehold title in Seller. Notwithstanding
anything to the contrary set forth in this Agreement shall the Closing Date occur later than the Outside Closing Date without the
prior written consent of the Seller.

 

5.2.         Conditions
to the Parties’ Obligations to Close.

 

(a)          Conditions
to Buyer’s Obligation to Close. As a condition to Buyer’s obligation to close with respect to the Property on the
Closing Date:

 

(i)          All
instruments and other documents required to be delivered by Seller and described in Section 5.4 have been delivered to the Escrow
Agent.

 

(ii)         The
representations and warranties of Seller contained herein shall be true and correct in all material respects as of the Effective
Date and as of the Closing Date.

 

(iii)        There
shall be no default with respect to any material obligation of Seller hereunder which Seller has not cured within thirty (30) days
after written notice from Buyer.

 

(iv)        There
shall be no notice issued after the Effective Date of any violation or alleged violation of any law, rule, regulation or code,
including, without limitation, any building code, with respect to the Facility, which has not been corrected to the satisfaction
of the issuer of the notice.

 

(v)         There
shall be no material default on the part of Seller or any other party under any agreement to be assigned to, or obligation to be
assumed by, Buyer under this Agreement, including, without limitation the Ground Lease.

 

(vi)        All
licenses, consents, approvals or other authorizations from third parties or governmental authorities required in connection with
the transactions contemplated hereunder, including, without limitation, all consents and approvals of the ground lessor under the
Ground Lease and all licenses and approvals by agencies charged with regulating or licensing Senior Housing Facilities, shall have
been obtained by, and issued in the name of, Buyer or its property manager or designee.

 

    	-10-

    	 

    

  

(vii)       There
shall have been no material adverse change in the business, operations or condition (financial, physical, title, licensing, environmental
or otherwise) of the Facility since the Effective Date.

 

(viii)      [RESERVED]

 

(ix)         No
proceedings shall be pending or threatened that could or would involve the change, redesignation, redefinition or other modification
of the zoning classifications (or any building, environmental or code requirements applicable to) in a manner that would adversely
affect the Property, excepting such proceedings agreed to by Buyer.

 

(x)          [RESERVED]

 

(xi)         [RESERVED][

 

(xii)        There
shall be no default with respect to any material obligation of any party
to the Operations Transfer Agreement (other than Buyer) which such party has not cured within thirty (30) days after written
notice from Buyer.

 

(b)          Conditions
to Seller’s Obligation to Close. As a condition to Seller’s obligation to close with respect to the Property on
the Closing Date:

 

(i)          The
Foreclosure Action shall have been completed and Seller shall be vested in title with the lessee's interest under the Ground Lease
and the Personal Property, together constituting the Property.

 

(ii)         The
Purchase Money Note, Purchase Money Mortgage and all funds, instruments and other documents required to be delivered by Buyer and
described in Section 5.5 have been delivered to the Escrow Agent.

 

(iii)        The
representations and warranties of Buyer contained herein shall be true and correct in all material respects as of the Effective
Date and as of the Closing Date.

 

(iv)        There
shall be no default with respect to any material obligation of Buyer hereunder which Buyer has not cured within thirty (30) days
after written notice from Seller.

 

    	-11-

    	 

    

 

5.3.         Failure
of Condition. Provided that a party is not in default of any material obligation of such party, if any
condition to such party’s obligation to proceed with the Closing set forth in this Agreement has not been satisfied as of
the Closing Date, then such party may, in its sole discretion, elect, by notice given to the other party on or before the
Closing Date, to:  (i) extend the time available for the satisfaction
of such condition by up to a total of thirty (30) days; or (ii) close, notwithstanding the non-satisfaction of such condition,
in which event such party shall be deemed to have waived such condition. If such party elects to proceed pursuant to clause (i)
above, and such condition remains unsatisfied after the end of such extension period, then, at such time, such party may elect
to proceed pursuant to either terminate this Agreement or proceed pursuant to clause (ii) above. 

 

5.4.         Seller’s
Deliveries. On or before the Closing Date, Seller shall deliver
in escrow to the Escrow Agent or outside of escrow to Buyer the following, each duly executed and, where appropriate, in recordable
form and notarized:

 

(a)          Assignment
of Ground Lease. An assignment of lessee's interest under the Ground Lease in the form
of Exhibit D-1 attached hereto (the “Ground Lease Assignment”), executed and acknowledged by Seller,
vesting in Buyer good, indefeasible and marketable title to the lessee's interest under the Ground Lease, subject only to
the Permitted Exceptions and the terms and provisions Ground Lease, provided, however, that in the event Seller is the highest
bidder in the Foreclosure Action, Seller may assign to Buyer its bid at such auction and, in lieu of delivery of the Ground Lease
Assignment, deliver Seller's foreclosure deed directly to Buyer, the forms of which are attached as Exhibit D-2, which Buyer agrees
to accept;

 

(b)          Bill
of Sale and Assignment Agreement. A bill of sale and assignment agreement in the form
of Exhibit G attached hereto (the “Bill of Sale”), executed and acknowledged by Seller, vesting
in Buyer good title to the Personal Property described therein free of any claims, except for the Permitted Personal Property Liens;

 

(c)          [RESERVED]

 

(d)          Notice
to Residents. A notice to each resident in form as reasonably requested
by Buyer;

 

(e)          State
Law Disclosures. Such disclosures and reports as are required by applicable state and local law
in connection with the conveyance of real property;

 

(f)          FIRPTA.
An affidavit of Seller substantially in the form of Exhibit F
attached hereto. If Seller fail to provide the necessary affidavit and/or documentation of exemption on the Closing Date, Buyer
may proceed in accordance with the withholding provisions imposed by Section 1445 of the Internal Revenue Code of 1986, as amended;

 

(g)          Certificates
of Title. Certificates of title (if applicable) and leases (if applicable) for each Vehicle.

 

(h)          Authority.
Evidence of the existence, organization and authority of Seller and of the authority of
the persons executing documents on behalf of Seller reasonably satisfactory to the Title Company and Buyer;

 

(i)          Title
Documents. Affidavits required by the Title Company sufficient to have the general exceptions deleted
together with such other documents and instruments required by the Title Company in order to issue the Title Policy;

 

    	-12-

    	 

    

  

(j)          Due
Diligence Materials. To the extent not previously delivered to Buyer, true, correct and complete originals, or copies, if originals
are not available, of each Seller Deliverable.

 

(k)          Closing
Certificate. A certificate, signed by Seller, certifying to Buyer that the representations and warranties of Seller contained
in this Agreement are true and correct in all material respects as if made on and as of the Closing Date and that all covenants
required to be performed by Seller prior to the Closing Date have been performed in all material respects;

 

(l)            Settlement
Statement. A settlement statement, duly executed by Seller;

 

(m)          Permits
and Approvals. All licenses, permits and approvals in Seller’s possession related to the construction, development ownership,
operation and use of the Property;

 

(n)          Plans
and Specifications. All material plans and specifications relating to the Property in Seller’s possession and control
or otherwise reasonably available to Seller;

 

(o)          Ground
Lease Matters. (i) A consent executed and acknowledged by the ground lessor under the Ground Lease, in form and substance reasonably
acceptable to Buyer, evidencing the consent of the ground lessor to the Ground Lease Assignment, and (ii) an amendment to the Ground
Lease executed and acknowledged by the ground lessor, substantially
in the form of Exhibit I attached hereto;

 

(p)          Other
Deliveries. Such other documents, certificates and instruments as are reasonably necessary in order to effectuate the
transaction described herein, including, without limitation, gap indemnity agreements, transfer tax declarations, broker lien waivers
and any documents or representations necessary to comply with any applicable environmental transfer disclosure laws and any other
Closing deliveries required to be made by or on behalf of Seller.

 

5.5.         Buyer’s
Deliveries. On or before the Closing Date, Buyer shall deposit the 
duly executed Purchase Money Note, Purchase Money Mortgage and other documents securing the payment of the Purchase Money Note.
In addition, except as specified below, on or before the Closing
Date, Buyer shall deliver in escrow to the Escrow Agent or outside of escrow to Seller the following, each duly executed and, where
appropriate, in recordable form and notarized:

 

(a)          Bill
of Sale. The Bill of Sale, executed by Buyer;

 

(b)          Authority.
Evidence of the existence, organization and authority of Buyer and of the authority of the persons executing documents on behalf
of Buyer reasonably satisfactory to the Title Company and Seller;

 

(c)          Assignment
of Residency Agreements. ;

 

(d)          State
Law Disclosures. Such disclosures and reports as are required by applicable state and local law
in connection with the conveyance of real property;

 

    	-13-

    	 

    

  

(e)          Settlement
Statement. A settlement statement, duly executed by Buyer;

 

(f)          Other
Deliveries. Such other documents, certificates and instruments reasonably necessary in order to effectuate the
transactions described herein and any other Closing deliveries required to be made by or on behalf of Buyer.

 

5.6.        Possession.
Seller shall deliver possession of the Property to Buyer at the Closing, subject
only to the Permitted Exceptions.

 

ARTICLE
6:  PRORATIONS; COSTS; ADJUSTMENTS

 

6.1.        Prorations.
Not less than one (1) business days prior to Closing, Seller shall provide
to Buyer such information and verification reasonably necessary to support the prorations under this Article 6. The items
in this Section 6.1 shall be pro rated between Seller and Buyer as of the close of business on the day immediately preceding
the applicable Closing Date, the Closing Date being a day of income and expense to Buyer. Credits to Buyer shall be paid by adjustment
by credit to the principal of the Purchase Money Note by Seller to Buyer at the Closing. Credits to Seller shall be paid by Buyer
in cash at the Closing. Post-closing re-prorations and adjustments shall be paid in cash. Subject to the foregoing and for the
other provisions of this Article 6, the following items shall be pro rated and adjusted at Closing:

 

(a)          Taxes
and Assessments. Buyer shall receive a credit for any accrued but unpaid real estate taxes,
personal property taxes, special assessments and betterments (“Taxes”) (including, without limitation, any assessments
imposed by private covenant) applicable to any period before the Closing Date, whether or not such Taxes are not yet due and payable,
and Seller shall receive a credit for any Taxes applicable to any period after the Closing Date paid in advance by Seller. If the
amount of any such Taxes have not been determined as of the Closing Date, then such credit shall be based on the most recent ascertainable
taxes. Such undetermined Taxes shall be reprorated upon issuance of the final tax bill. Notwithstanding the foregoing, (i) Buyer
shall receive from Seller a credit for any special assessments and betterments which are levied or charged against the Property
or the Real Property with respect to any infrastructure improvements specifically made to serve the Facility, whether or not then
due and payable, and (ii) any other special assessments and betterments shall be prorated only for the year of Closing.

 

(b)          Ground
Rent. Buyer shall receive from Seller a credit for any rent and other charges under
the Ground Lease accrued or payable on or before Closing that applies to any period prior to Closing but is unpaid as of Closing,
unless the same has otherwise been waived or forgiven by the ground lessor.

 

6.2.        Sales,
Transfer, and Documentary Taxes; Closing Costs.

 

(a)          Seller
shall pay all sales, gross receipts, conveyancing, stamp, excise, documentary,
transfer, deed or similar taxes or fees imposed in connection with this transaction under applicable state, county or local law,
excepting, however, the Nantucket Land Bank transfer fee which shall be the responsibility of Buyer. Seller and Buyer shall execute
any applicable city, county and state transfer tax or other declarations.

 

    	-14-

    	 

    

  

(b)          Buyer
shall pay: (i) one-half of the Escrow Agent’s escrow fee, closing
charges and any cancellation fee, (ii) the costs associated with Buyer’s due diligence activities, (iii) the cost of the
Title Policy and Survey, (iv) the Nantucket Land Bank transfer fee, and (v) and any recording fees that do not constitute clearing
title. Seller shall pay (x) one-half of the Escrow Agent’s escrow fee, closing charges and any cancellation fee, and (y)
all recording fees or other charges incurred in connection with clearing title, including without limitation any prepayment or
release fees. Each party shall be responsible for its own attorney’s and other professional fees.

 

6.3.         Brokerage
Commissions. Seller and Buyer each represents and warrants to the other that it has not dealt with any real estate broker,
sales person or finder in connection with this transaction other than auctioneer fees in connection with the Foreclosure Action.
Seller shall be responsible for any fee or commission due to the auctioneer pursuant to a separate agreement between Seller and
auctioneer. Buyer shall indemnify, defend and hold harmless Seller from and against any claim to a broker’s or finder’s
fee or commission by any other party based upon any actual or alleged statement, representation or agreement of Buyer. Seller shall
indemnify, defend and hold harmless Seller from and against any claim to a broker’s or finder’s fee or commission made
by auctioneer or by any other party based upon any actual or alleged statement, representation or agreement of Seller.

 

6.4.        Post-Closing
Corrections. Notwithstanding any provision hereof to the contrary, within sixty (60) days after Closing, the parties shall
complete a good faith reconciliation of all closing costs, prorations and adjustments under this Article 6 and shall make any payments
due to the other party pursuant thereto.

 

6.5.        No
Other Obligations. No other expense related to the ownership or
operation of the Property prior to the Closing Date shall be charged to or paid or assumed by Buyer under this Agreement, other
than those obligations expressly assumed by Buyer in writing.

 

ARTICLE
7:  REPRESENTATIONS AND WARRANTIES

 

7.1.        Seller’s
Representations and Warranties. As a material inducement to Buyer to execute this Agreement and consummate
this transaction, Seller represents and warrants to Buyer as follows as of the date hereof (which representations, warranties shall
also be true on the Closing Date as if made on the Closing Date):

 

(a)          Organization
and Authority of Seller. Seller is a duly organized, and validly existing, and
is in good standing as a limited partnership in the State of Delaware.
Seller has the full right, power and authority and has obtained any and all consents required to enter into this Agreement, all
of the documents to be delivered by Seller at the Closing and to consummate or cause to be consummated the transactions contemplated
hereby. This Agreement has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and properly
executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance
with its terms subject to applicable bankruptcy and insolvency laws and laws affecting creditor’s rights generally. 

 

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(b)          Pending
Actions or Proceedings. There is no action or proceeding pending or,
to Seller’s knowledge, threatened against Seller with respect to the Property, the Facility or the within transaction. No
condemnation, eminent domain or similar proceedings are pending or which Seller has received notice or, to Seller's knowledge,
threatened with regard to the Facility. Seller has not received any notice and has no knowledge of any pending or threatened liens,
special assessments, impositions or increases in assessed valuations to be made against the Facility. This Agreement constitutes
the legal, valid and binding obligation of Seller enforceable in accordance with its terms.

 

(c)          Conflicts;
Filings. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby,
will: (i) violate any law to which Seller is subject, or any provision of its operating agreement or certificate of formation;
or (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument,
or other arrangement to which Seller is a party or by which it is bound or to which any of its assets is subject other than the
notices and consents which constitute conditions precedent under this Agreement. Except for such notices and consents which constitute
conditions precedent under this Agreement, Seller is not required to give any notice to, make any filing with, or obtain any authorization,
consent or approval of any government or governmental agency in order for the parties to consummate the transactions contemplated
by this Agreement.

 

(d)          Title.
Upon completion of the Foreclosure Action, Seller shall have good, clear record and marketable title to the Property, free and
clear of all liens, encumbrances and restrictions, other than the matters described in Exhibit J attached hereto.

 

(e)          Ground
Lease. The Ground Lease has not been modified, altered or terminated, provided that Seller and Buyer shall proceed to obtain
the amendment to the Ground Lease on or before Closing in the form attached as Exhibit I. No default or event of default
now exists, or, but for the passage of time, will exist, under the Ground Lease.

 

(f)          Operating
Statements. The operating statements of Seller and Existing Manager with respect to the Facility for the fiscal year ended
December 31, 2013 and the year-to-date interim operating statements for the period through August 30, 2014, delivered to Buyer
pursuant to this Agreement show all items of income and expense incurred
in connection with the ownership, operation, and management of the Property for the periods indicated and are true, correct, and
complete in all material respects. No material adverse change has occurred from the respective dates of such operating statements
to the date hereof.

 

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(g)          Permits,
Legal Compliance, and Notice of Defects. Seller, or its agents, managers or affiliates, have all licenses, permits and certificates
necessary to be held by Seller for the operation of the Property, including, without limitation, all certificates of occupancy
necessary for the occupancy of the Property (the "Permits"). All of the Permits are in full force and effect,
and Seller has not taken or failed to take any action that would result in their revocation, suspension or limitation, nor received
any written notice of an intention to revoke, suspend or limit any of them. Neither the Property nor the use thereof violates any
Permit, governmental law or regulation or any covenants or restrictions encumbering the Property. Seller has not received any written
notice from any insurance company or underwriter, or is otherwise aware, of any defects that would materially adversely affect
the insurability of the Property or cause an increase in insurance premiums. Seller has not received notice from any governmental
authority or other person of, nor has any knowledge of, any violation of zoning, building, fire, health, environmental, or other
statutes, ordinances, regulations or orders (including, without limitation, those respecting the Americans with Disabilities Act),
or any restriction, condition, covenant or consent in regard to the Property or any part thereof which have not been corrected
to the satisfaction of the issuer.

 

(h)          Environmental.
To the best of Seller's knowledge and belief, Seller has received no notice of any violation of any Environmental Law related to
the Real Property or the presence or release of any Hazardous Materials on or from the Real Property except as disclosed in the
environmental reports listed in Exhibit K attached hereto (the "Environmental Reports"). Except for de
minimis amounts of Hazardous Materials used, stored and disposed of in accordance with Environmental Laws, and used in connection
with the ordinary maintenance and operation of the Property, Seller has no knowledge of any Hazardous Materials or any toxic wastes,
substances or materials (including, without limitation, asbestos) manufactured, introduced, released or discharged from or onto
the Property and Seller has no knowledge of the generation, treatment, storage, handling or disposal of any Hazardous Materials
at the Property. Except as set forth in the Environmental Reports, there are no underground storage tanks located on the Real Property.
Seller is not aware of any environmental assessments or studies which exist with respect to the Real Property except for the Environmental
Reports.

 

(i)          Bankruptcy
Matters. Seller has not made a general assignment for the benefit
of creditors, filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors, suffered
the appointment of a receiver to take possession of all or substantially all of its assets, suffered the attachment or other judicial
seizure of all or substantially all of its assets, admitted its inability to pay its debts as they come due, or made an offer of
settlement, extension or composition to its creditors generally.

 

(j)          PATRIOT
Act. Seller is in compliance with the requirements of Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the
“Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign
Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive
Orders or regulations in respect thereof (the Order and such other rules, regulations, legislation, or orders are collectively
called the “Orders”). Further, Seller covenants and agrees to make its policies, procedures and practices
regarding compliance with the Orders, if any, available to Buyer for its review and inspection during normal business hours and
upon reasonable prior notice. Neither Seller nor any beneficial owner of Seller:

 

(i)          is
listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other
list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any
other applicable Orders (such lists are collectively referred to as the “Lists”);

 

    	-17-

    	 

    

  

(ii)         is
a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or

 

(iii)        is
owned or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been
determined by competent authority to be subject to the prohibitions contained in the Orders.

 

Seller hereby covenants and agrees that
if Seller obtains knowledge that Seller or any of its beneficial owners becomes listed on the Lists or is indicted, arraigned,
or custodially detained on charges involving money laundering or predicate crimes to money laundering, Seller shall immediately
notify Buyer in writing, and in such event, Buyer shall have the right to terminate this Agreement without penalty or liability
to Seller immediately upon delivery of written notice thereof to Buyer.

 

(k)          Utilities.
Public utility services (including, without limitation, all applicable electric lines, sewer and water lines, gas, cable, television
and telephone lines) are available to service the Property at the property line without the need for any non public utility easements
over land of others, and, to Seller’s knowledge, said public utility services are adequate to service the requirements of
the Property and its tenants and occupants as presently operated, and all payments currently due for the same have been made, and,
to Seller’s knowledge, all necessary easements, permits, licenses and agreements in respect of any of the foregoing exist
and are in full force and effect and are installed and operating and all installation and connection charges have been paid for
in full. Neither Seller, nor to Seller’s knowledge, any prior owner of the Property has received notice of any fact or condition
existing and would or could result in the termination or reduction of the current access from the Property to existing roads and
highways, or to sewer or other utility services available to the Property.

 

(l)          Disclosure.
Other than this Agreement, the documents delivered at Closing pursuant hereto, the Permitted
Exceptions, and the Residency Agreements, there are no contracts or agreements of any kind relating to the Property to which Seller
is a party and which would be binding on Buyer after Closing Seller has delivered to Buyer all written materials in Seller’s
possession or control which contain information or disclose facts or conditions that would have a material adverse impact on the
use, operation or marketability of the Property. The originals and copies of Seller Deliverables delivered to Buyer pursuant to
Section 3.1 hereof are true, correct and complete originals or copies of the respective documents, instruments, agreements
or other items, and Seller is not aware of any material inaccuracy or omission in the information in Seller Deliverables.

 

(m)          Bankruptcy
Matters. Seller has not made a general assignment for the benefit of creditors, filed any voluntary petition in bankruptcy
or suffered the filing of an involuntary petition by its creditors, suffered the appointment of a receiver to take possession of
all or substantially all of its assets, suffered the attachment or other judicial seizure of all or substantially all of its assets,
admitted its inability to pay its debts as they come due, or made an offer of settlement, extension or composition to its creditors
generally.

 

    	-18-

    	 

    

  

As used in this Agreement, the "knowledge"
of Seller means the actual knowledge of Kent Eikanas, and shall not include any imputed or constructive knowledge, or any implied
duty to investigate or verify any matters represented to herein.

 

7.2.         Buyer’s
Representations and Warranties. As a material inducement to Seller to execute this Agreement and consummate
this transaction, Buyer represents and warrants to Seller as follows as of the date hereof (which representations, warranties shall
also be true on the Closing Date as if made as of the date thereof):

 

(a)          Organization
and Authority. Buyer has been duly organized and is validly existing as
a Massachusetts c. 180 non-profit corporation,. Buyer has the full right and authority and has obtained any and all consents required
to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby. This Agreement
has been, and all of the documents to be delivered by Buyer at the Closing will be, authorized and properly executed and constitutes,
or will constitute, as appropriate, the valid and binding obligation of Buyer, enforceable in accordance with their terms.

 

(b)          Pending
Action. There is no agreement to which Buyer is a party or to Buyer's knowledge binding on Buyer which is in conflict with
this Agreement. There is no action or proceeding pending or, to Buyer's knowledge, threatened against Buyer which challenges or
impairs Buyer's ability to execute or perform its obligations under this Agreement. This Agreement constitutes the legal, valid
and binding obligation of Buyer enforceable in accordance with its terms.

 

(c)          Bankruptcy
Matters. Buyer has not made a general assignment for the benefit of creditors, filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by its creditors, suffered the appointment of a receiver to take possession of all
or substantially all of its assets, suffered the attachment or other judicial seizure of all or substantially all of its assets,
admitted its inability to pay its debts as they come due, or made an offer of settlement, extension or composition to its creditors
generally.

 

(d)          Conflicts;
Filings. Neither the execution and the delivery of this Agreement,
nor the consummation of the transactions contemplated hereby, will: (i) violate any law to which Buyer is subject, or any
provision of its operating agreement or certificate of formation; or (ii) conflict with, result in a breach of, constitute
a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require
any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which
it is bound or to which any of its assets is subject. Buyer is not required to give any notice to, make any filing with, or obtain
any authorization, consent or approval of any government or governmental agency in order for the parties to consummate the transactions
contemplated by this Agreement.

 

(e)          PATRIOT
Act. Buyer is in compliance with the requirements of the Order and other similar requirements contained in the rules
and regulations of OFAC and in any enabling legislation or other Orders. Further, Buyer covenants and agrees to make
its policies, procedures and practices regarding compliance with the Orders, if any, available to Seller for its review and inspection
during normal business hours and upon reasonable prior notice. Neither Buyer nor any beneficial owner of Buyer:

 

    	-19-

    	 

    

  

(i)          is
listed on the Lists;

 

(ii)         is
a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or

 

(iii)        is
owned or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been
determined by competent authority to be subject to the prohibitions contained in the Orders.

 

(f)          Buyer
hereby covenants and agrees that if Buyer obtains knowledge that Buyer or any of its beneficial owners becomes listed on the Lists
or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering,
Buyer shall immediately notify Seller in writing, and in such event, Seller shall have the right to terminate this Agreement without
penalty or liability to Buyer immediately upon delivery of written notice thereof to Buyer.

 

7.3.        Indemnity.

 

(a)          Seller
hereby agrees to indemnify, defend and hold Buyer harmless from any liability, claim, demand, loss, expense or damage, including,
without limitation, attorneys' fees and costs (collectively, "Claims") arising out of (i) any material breach
of any material representation or warranty of Seller set forth herein which adversely affects the Property, the Facility or its
operatons; (ii) any willful malfeasance or gross negligence of Seller or any of its agents, employees or contractors; (iii) the
ownership of the Property accruing prior to the Closing Date, including, without limitation, any Claims made by or relating to
employment matters arising prior to the Closing, or made under or relating to the Ground Lease];. Notwithstanding the foregoing
or anything to the contrary in this Agreement, with respect to any Claims arising under theOperations Transfer Agreement, Buyer
hereby agrees that (i) Buyer will first pursue its remedies and indemnification rights under the Operations Transfer Agreement
prior to seeking any indemnification rights it is entitled to under this Agreement, and (ii) the aggregate liability of Seller
shall not exceed $50,000.

 

(b)          Buyer
hereby agrees to indemnify, defend and hold Seller harmless from any Claim arising out of (i) any material breach of any of material
representation or warranty of Buyer set forth herein, (ii) any willful
act or omission of Buyer, its agents, employees or contractors, or (iii) the ownership or operation of the Property accruing on
or after the Closing Date, including, without limitation, any Claims made by or relating to any employee accruing on or after the
Closing Date.

 

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(c)          The
following provisions govern all actions for indemnity under this Section 7.3 and any other
provision of this Agreement. Promptly after receipt by an indemnitee of notice of any claim, such indemnitee will, if a claim in
respect thereof is to be made against the indemnitor, deliver to the indemnitor written notice thereof. After such notice, the
indemnitor shall be entitled, if it so elects at its own cost, risk and expense, (i) to take control of the defense and investigation
of such lawsuit or action, (ii) to employ and engage attorneys of its own choice to handle and defend the same unless the
named parties to such action or proceeding include both the indemnitor and the indemnitee and the indemnitee has been advised in
writing by counsel that there exists a bona fide and recognized ethical conflict which would require that such counsel obtain a
waiver or similar consent from each of the indemnitor and the indemnitee to undertake such joint defense, in which event the indemnitor
shall be entitled, at the indemnitor’s cost, risk and expense, to separate counsel of its own choosing only if it reasonably
determines in good faith that such waiver or consent cannot be given, and (iii) to compromise or settle such claim, which
compromise or settlement shall be made only with the written consent of the indemnitee, such consent not to be unreasonably withheld.
If the indemnitor fails to assume the defense of such claim within thirty (30) calendar days after receipt of the claim notice,
the indemnitee against which such claim has been asserted will (upon delivering notice to such effect to the indemnitor) have the
right to undertake, at the indemnitor’s sole cost and expense (to be reimbursed as accrued), the defense, compromise or settlement
of such claim on behalf of and for the account and risk of the indemnitor. In the event the indemnitee assumes the defense of the
claim, the indemnitee will keep the indemnitor reasonably informed of the progress of any such defense, compromise or settlement.
The indemnitor shall be liable for any settlement of any action effected pursuant to and in accordance with this Section 7.3
subject to the written consent of the indemnitor and for any final judgment (subject to any right of appeal), and the indemnitor
agrees to indemnify and hold harmless an indemnitee from and against any losses by reason of such settlement or judgment; provided,
however, that if an indemnitee settles a claim without the prior written consent of the indemnitor, then the indemnitor
shall be released from liability with respect to such claim unless the indemnitor has unreasonably withheld such consent. The failure
of indemnitee to deliver written notice to the indemnitor within a reasonable time after indemnitee receives notice of any such
claim shall relieve such indemnitor of any liability to the indemnitee under this indemnity only if and to the extent that such
failure is prejudicial to the indemnitor’s ability to defend such action, and the omission so to deliver written notice to
the indemnitor will not relieve it of any liability that it may have to any indemnitee other than under this indemnity.

 

7.4.        Survival
of Representations, Warranties and Indemnity.

 

(a)          The
representations and warranties set forth in this Article 7 are made
as of the Effective Date, and each party shall be deemed to have remade all of their respective representations and warranties
as of the Closing Date. No representations or warranties shall be deemed to be merged into or waived by the instruments of Closing,
but shall survive the Closing for a period of six (6) months.

 

(b)          The
indemnity obligations of the parties under Section 7.3 shall survive the Closing for a period of six (6) months.

 

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ARTICLE
8:  DEFAULT AND REMEDIES

 

8.1.         Buyer’s
Remedies. If this transaction fails to close as a result of any material default on the part of Seller which has not been
cured by the earlier of the thirtieth (30th) day after written notice thereof from Buyer or the Closing Date, then
Buyer shall be entitled to the remedy of specific performance, but in no event shall Seller be liable for any actual, compensatory,
consequential, punitive or any other monetary damages.

 

8.2.         Seller’s
Remedies. If this transaction fails to close as a result of any default on the part of Buyer which has not been cured within
thirty (30) days after written notice thereof from Seller, then Seller
may seek specific performance, but in no event shall Buyer be liable for any actual, compensatory, punitive or any other monetary
damages. .

 

8.3.         Other
Expenses. If this Agreement is terminated due to the default of any party, then
the defaulting party shall pay any fees due to the Escrow Agent.

 

ARTICLE 9: ADDITIONAL
AGREEMENTS

 

9.1.         Partial
Releases of Purchase Money Mortgage. Upon the delivery of the Net Proceeds upon the sale of a Cottage as provided and defined
in the Purchase Money Note, Seller agrees to deliver to Buyer a partial release of the lien of the Purchase Money Mortgage with
respect to the subleasehold estate created with respect to such Cottage.

 

9.2.         Repurposing
Cottages Upon Purchase Money Mortgage Default.  In the event Buyer, as obligor under the Purchase Money Note and mortgagor
under the Purchase Money Mortgage shall default in its prompt and punctual payment and monetary obligations thereunder, or shall
cause such conditions to occur as to materially and adversely affect the value of the security granted to secure the payment of
the Purchase Money Note, including, but not limited to, causing excessive waste, failing to maintain insurance for the benefit
of Seller as mortgagee, or filing any proceeding under the Bankruptcy Act or a proceeding for the benefit of debtors under federal
or state law, then, in such event, Seller, as mortgagee, may declare the Purchase Money Mortgage in default, and the Seller as
mortgagee may take possession of the Property, and, pursuant to the amendment to the Ground Lease, declare all age restrictions
applicable to the Property and unsold Cottages null and void, cause the Ground Lessor to release its interest as Ground Lessor
in and to the unsold Cottages and surrounding land and grant of sufficient easements for access, utilities and the like to serve
the Cottages and land appurtenant thereto, and convey the same to Seller as mortgagee in possession in a sufficient manner that
Seller as mortgagee in possession may cause a subdivision of the land constituting the Cottages and appurtenant land and market,
sell and convey the same free of the Ground Lease and any interest of Buyer as ground lessee and any obligation to the Facility;
alternatively, in lieu of subdividing the Cottages and appurtenant land, in its sole discretion Seller may declare a condominium
regime with respect to the Cottages. In connection therewith, and as contemplated in the amendment to the Ground Lease, Ground
Lessor shall submit and support at a Town Meeting an article in form and content sufficient to create a fee simple absolute with
respect to the Cottages and appurtenant land to effectuate such subdivision or creation of condominium.

 

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9.3.         Settlement
of the LTA. After the Closing, Seller agrees to assist and cooperate with Buyer in negotiations with the trustees of the
liquidating trust formed under the LTA to settle and resolve outstanding disputes and concerns regarding the LTA. It is Buyer's
intention that following the Closing, sufficient funds will become available from operations of the Facility to fund such settlement
or payments to the LTA for the benefit of the beneficiaries thereof. In the event such funds from operations of the Facility shall
be inadequate to fund such settlement or payments due to the LTA, Seller agrees to contribute in the aggregate not more than $150,000,
in such portions as may be necessary from time to time to reach settlement and resolution with the beneficiaries of the LTA entitled
thereto. The foregoing obligations of Seller shall expire, determine and be of no further force or effect upon the fourth anniversary
of the Closing Date.

 

ARTICLE
10:  MISCELLANEOUS

 

10.1.      Parties
Bound. Neither party may assign this Agreement without the prior written consent of the other,
and any such prohibited assignment shall be void; provided, however, that Buyer may assign its rights and obligations under this
Agreement without Seller's consent, but with prior written notice to Seller, to any entity which is owned by or under common control
with Buyer. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the respective legal representatives,
successors, assigns, heirs, and devises of the parties.

 

10.2.      Headings.
The article and paragraph headings of this Agreement are for convenience only and in no
way limit or enlarge the scope or meaning of the language hereof.

 

10.3.      Invalidity
and Waiver. If any portion of this Agreement is held invalid or inoperative, then
so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and, to the greatest
extent legally possible, effect shall be given to the intent manifested by the portion held invalid or inoperative. The failure
by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver of such
party’s right to enforce against the other party the same or any other such term or provision in the future.

 

10.4.      Governing
Law. This Agreement shall, in all respects, be governed, construed, applied,
and enforced in accordance with the laws of the Commonwealth of Massachusetts.

 

10.5.      Survival.
The provisions of this Agreement that contemplate performance after the Closing including, without limitation, Article 6,
Article 7 and Article 9, the obligations of the parties not fully
performed at the Closing, and all indemnities set forth in this Agreement shall survive the Closing and shall not be deemed to
be merged into or waived by the instruments of Closing, subject to the provisions of Section 7.4 hereof.

 

10.6.      No
Third Party Beneficiary. This Agreement is not intended to give or confer any benefits,
rights, privileges, claims, actions, or remedies to any person or entity as a third party beneficiary, decree, or otherwise.

 

10.7.      Entirety
and Amendments. This Agreement embodies the entire agreement between the parties and supersedes all prior
agreements and understandings relating to the Property. This Agreement may be amended or supplemented only by an instrument in
writing executed by the party against whom enforcement is sought.

 

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10.8.      Time.
Time is of the essence in the performance of this Agreement.

 

10.9.      Confidentiality.
Neither party shall make any public announcement or other disclosure of this Agreement or any information
related to this Agreement to outside brokers or third parties, before or after the Closing, without the prior written consent of
the other party; provided, however, that each party may make disclosure of this Agreement to its lenders, creditors, officers,
employees, representatives, investors, consultants and agents as necessary or appropriate to consummate the transactions contemplated
herein, and provided further that Seller may disclose this Agreement and information relating hereto to any governmental or regulatory
body having jurisdiction over Seller.

 

10.10.    Enforcement
Expenses. Should either party employ attorneys to enforce any of the provisions hereof, the
party against whom any final judgment is entered agrees to pay the prevailing party all reasonable costs, charges, and expenses,
including reasonable and necessary attorneys’ fees and costs, expended or incurred in connection therewith.

 

10.11.    Notices.
All notices required or permitted hereunder shall be in writing and shall be served on
the parties at the addresses set forth in Exhibit L. Any such notices shall be either (i) sent by overnight delivery
using a nationally recognized overnight courier, in which case notice shall be deemed delivered on the date of deposit with such
courier, (ii) sent by certified or regular U.S. mail, postage prepaid, in which case notice shall be deemed delivered on the date
of deposit with the U.S. Postal Service, (iii) sent by email or facsimile, in which case notice shall be deemed delivered upon
transmission thereof so long as a copy thereof is also sent by overnight delivery using a nationally recognized overnight courier
by depositing such copy on such date of delivery by email or facsimile with such courier, or (iv) sent by personal delivery, in
which case notice shall be deemed delivered upon receipt or refusal of delivery. A party’s address may be changed to another
address in the United States by written notice to the other party; provided, however, that no notice of a change of address shall
be effective until actual receipt of such notice. Copies of notices are for informational purposes only, and a failure to give
or receive copies of any notice shall not be deemed a failure to give notice. Notices given by counsel to Buyer shall be deemed
given by Buyer and notices given by counsel to Seller shall be deemed given by Seller.

 

10.12.    Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement
and the documents to be executed at the Closing and agree that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be applied in the interpretation of this Agreement, the documents to be
delivered at Closing or any exhibits or amendments thereto.

 

10.13.    Calculation
of Time Periods. Unless otherwise specified, in computing any period of time described herein,
the day of the act or event after which the designated period of time begins to run is not to be included and the last day of such
period is to be included, unless such last day is a Saturday, Sunday or legal holiday for national banks in the Commonwealth of
Massachusetts, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, nor legal
holiday.

 

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10.14.    Execution
in Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement. To facilitate execution
of this Agreement, the parties may execute and exchange by telephone facsimile counterparts of the signature pages.

 

10.15.    Further
Assurances. In addition to the acts and deeds recited herein and contemplated to be performed,
executed and/or delivered by either party at Closing, each party agrees to perform, execute and deliver, but without any obligation
to incur any additional liability or expense, on or after the Closing any further deliveries and assurances as may be reasonably
necessary to consummate the transactions contemplated hereby or to further perfect the conveyance, transfer and assignment of the
Property to Buyer.

 

10.16.    Venue;
Arbitration. . IN CONNECTION WITH ANY PROCEEDING INVOLVING A DISPUTE
BETWEEN THE PARTIES HERETO, THE PARTIES HERETO CONSENT AND AGREE TO ARBITRATE THE SAME IN BOSTON, MASSACHUSETTS IN ACCORDANCE WITH
THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION, THE DECISION OF ANY SUCH ARBITRATOR OR PANEL SHALL BE FINAL AND ENFORCEABLE
BY ANY COURT, FEDERAL OR STATE, HAVING JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS.

 

10.17.    Bulk
Sales. If any applicable provisions of law require that any state or local taxation authorities be notified of the transactions
contemplated herein, or if clearance is required of such authorities, each in order to permit the transfer of the Real Property
as contemplated herein without liability to Buyer for any state or local taxes required to be paid or collected by Seller prior
to the Closing Date, it shall be a condition precedent to the obligations of Buyer hereunder that all such notification and clearance
requirements shall have complied with and the Buyer shall have received the requisite clearances and releases from further liability.
Seller shall, within ten (10) days after the Effective Date make all filings necessary to obtain such clearances, and shall contemporaneously
provide Buyer with copies of all such filings.

 

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    	-25-

    	 

    

  

IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Agreement on the day and year written below.

  

	 	SELLER:
	 	 
	 	CORNERSTONE OPERATING PARTNERSHIP, L.P.,
	 	a Delaware limited partnership
	 	By:  Summit Healthcare REIT, Inc.,
	 	f/k/a Cornerstone Core Properties REIT, Inc.,
	 	a Maryland corporation, its sole
	 	general partner
	 	 
	Dated: November 4, 2014	By:	/s/ Kent Eikanas
	 	 	Kent Eikanas, President
	 	 
	 	BUYER:
	 	 
	 	THE RESIDENCES AT SHERBURNE COMMONS, INC.,
	 	a Massachusetts non-profit corporation
	 	 
	Dated: November 4, 2014	By:	/s/ David D. Worth
	 	 	Name:David D. Worth
	 	 	Title:President and Treasurer

 

    	 

    	 

    

  

JOINDER

 

Chicago Title Insurance
Company hereby joins this Agreement for the sole purpose of agreeing to be bound by the provisions of Sections 2.2 and 2.3 hereof.

 

	 	CHICAGO TITLE INSURANCE COMPANY
	 	 	 
	 	By:	/s/ David J. Buczkowski
	 	 	Name: David J. Buczkowski
	 	 	Title: Vice President

 

    	 

    	 

    

  

EXHIBITS OMITTED

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