Document:

Amended and Restated Limited Liabilty Agreement

 Exhibit 10.2 
 AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 
 OF 

CNLSUN PARTNERS II, LLC 
 THE INTERESTS OF THE MEMBERS ISSUED UNDER THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR THE DISTRICT OF COLUMBIA. NO RESALE OR TRANSFER
OF AN INTEREST BY A MEMBER IS PERMITTED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT AND ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND ANY VIOLATION OF SUCH PROVISIONS COULD EXPOSE THE SELLING OR TRANSFERRING MEMBER AND THE
COMPANY TO LIABILITY. 
 Dated as of August 2, 2011 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE 1
	  	 DEFINITIONS
	  	 	1	  
	 1.1
	  	 Definitions
	  	 	1	  
	 1.2
	  	 General Interpretive Principles
	  	 	15	  
			
	 ARTICLE 2
	  	 THE COMPANY AND ITS BUSINESS
	  	 	16	  
	 2.1
	  	 Company Name
	  	 	16	  
	 2.2
	  	 Term
	  	 	16	  
	 2.3
	  	 Filing of Certificate and Amendments
	  	 	16	  
	 2.4
	  	 Business; Scope of Members’ Authority
	  	 	16	  
	 2.5
	  	 Principal Office; Registered Agent
	  	 	16	  
	 2.6
	  	 Authorized Persons
	  	 	17	  
	 2.7
	  	 Representations by Members
	  	 	17	  
	 2.8
	  	 Organization Expenses
	  	 	17	  
	 2.9
	  	 Opt-in to Article 8
	  	 	17	  
	 2.10
	  	 Securities Laws Restrictions
	  	 	18	  
			
	 ARTICLE 3
	  	 MANAGEMENT OF COMPANY BUSINESS
	  	 	18	  
	 3.1
	  	 Appointment of Managing Member
	  	 	18	  
	 3.2
	  	 Duties of Managing Member
	  	 	18	  
	 3.3
	  	 Bank Accounts
	  	 	19	  
	 3.4
	  	 Reimbursement for Costs and Expenses
	  	 	19	  
	 3.5
	  	 Major Decisions
	  	 	19	  
			
	 ARTICLE 4
	  	 RIGHTS AND DUTIES OF MEMBERS
	  	 	20	  
	 4.1
	  	 Members Shall Not Have Power to Bind Company
	  	 	20	  
	 4.2
	  	 Other Activities of the Members
	  	 	20	  
	 4.3
	  	 Indemnification
	  	 	20	  
	 4.4
	  	 Dealing with Members
	  	 	21	  
	 4.5
	  	 Use of Company Assets
	  	 	22	  
	 4.6
	  	 Designation of Tax Matters Member
	  	 	22	  
	 4.7
	  	 OFAC; Not Foreign Person; Not Prohibited Person
	  	 	22	  
	 4.8
	  	 Management Fees and OD Loans
	  	 	22	  
			
	 ARTICLE 5
	  	 BOOKS AND RECORDS; REPORTS
	  	 	23	  
	 5.1
	  	 Books and Records
	  	 	23	  
	 5.2
	  	 Availability of Books and Records; Return of Books and Records
	  	 	23	  
	 5.3
	  	 Reports and Statements
	  	 	23	  
	 5.4
	  	 Accounting Expenses
	  	 	24	  
	 5.5
	  	 Budgets
	  	 	24	  
			
	 ARTICLE 6
	  	 CAPITAL CONTRIBUTIONS, LOANS AND LIABILITIES
	  	 	24	  
	 6.1
	  	 Initial Capital Contributions of the Members
	  	 	25	  
	 6.2
	  	 [Intentionally Omitted]
	  	 	25	  
	 6.3
	  	 Capital Calls
	  	 	25	  

							
	 6.4
	  	 Reimbursements
	  	 	25	  
	 6.5
	  	 Member Loans for Failure to Fund Capital Contributions
	  	 	26	  
	 6.6
	  	 Capital of the Company
	  	 	26	  
	 6.7
	  	 Limited Liability of Members
	  	 	27	  
	 6.8
	  	 Refinancing
	  	 	27	  
			
	 ARTICLE 7
	  	 CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS
	  	 	27	  
	 7.1
	  	 Capital Accounts
	  	 	27	  
	 7.2
	  	 General Allocation Rules
	  	 	29	  
	 7.3
	  	 Special Allocations
	  	 	29	  
	 7.4
	  	 Income Tax Elections
	  	 	32	  
	 7.5
	  	 Income Tax Allocations
	  	 	32	  
	 7.6
	  	 Transfers During Fiscal Year
	  	 	33	  
	 7.7
	  	 Election to be Taxed as Association
	  	 	33	  
	 7.8
	  	 Assignees Treated as Members
	  	 	33	  
			
	 ARTICLE 8
	  	 DISTRIBUTIONS OF NET OPERATING CASH FLOW AND CAPITAL PROCEEDS
	  	 	33	  
	 8.1
	  	 Distributions of Net Operating Cash Flow
	  	 	34	  
	 8.2
	  	 Distribution of Capital Proceeds
	  	 	35	  
	 8.3
	  	 Distribution Calculations
	  	 	35	  
	 8.4
	  	 Repayment of Member Loans, Reconciliation Amounts and Other Payments
	  	 	35	  
	 8.5
	  	 Liquidation
	  	 	36	  
			
	 ARTICLE 9
	  	 DISPOSITION OF INTERESTS
	  	 	36	  
	 9.1
	  	 Limitations on Assignments of Interests by Members
	  	 	36	  
	 9.2
	  	 Assignment Binding on Company
	  	 	36	  
	 9.3
	  	 Substituted Members
	  	 	37	  
	 9.4
	  	 Acceptance of Prior Acts
	  	 	37	  
	 9.5
	  	 Permitted Transfers
	  	 	37	  
			
	 ARTICLE 10
	  	 DISSOLUTION OF THE COMPANY; WINDING UP AND DISTRIBUTION OF ASSETS
	  	 	39	  
	 10.1
	  	 Dissolution
	  	 	39	  
	 10.2
	  	 Winding Up
	  	 	39	  
	 10.3
	  	 Distribution of Assets
	  	 	40	  
			
	 ARTICLE 11
	  	 AMENDMENTS
	  	 	40	  
	 11.1
	  	 Amendments
	  	 	40	  
	 11.2
	  	 Additional Members
	  	 	40	  
	 11.3
	  	 Documentation
	  	 	40	  
			
	 ARTICLE 12
	  	 BUY-SELL; PURCHASE OPTION; RIGHT OF FIRST OFFER
	  	 	41	  
	 12.1
	  	 Purchase Option
	  	 	41	  
	 12.2
	  	 Buy Sell
	  	 	41	  

							
	 12.3
	  	 Right of First Offer
	  	 	42	  
	 12.4
	  	 CNL Put Right
	  	 	43	  
	 12.5
	  	 Closing
	  	 	44	  
	 12.6
	  	 Release from Guaranties
	  	 	46	  
	 12.7
	  	 Upon Termination of Management Agreement
	  	 	46	  
	 12.8
	  	 Enforcement
	  	 	46	  
			
	 ARTICLE 13
	  	 MISCELLANEOUS
	  	 	46	  
	 13.1
	  	 Further Assurances
	  	 	47	  
	 13.2
	  	 Notices
	  	 	47	  
	 13.3
	  	 Headings and Captions
	  	 	48	  
	 13.4
	  	 Variance of Pronouns
	  	 	48	  
	 13.5
	  	 Counterparts
	  	 	48	  
	 13.6
	  	 Governing Law; Litigation, Jurisdiction and Waiver of Jury Trial
	  	 	49	  
	 13.7
	  	 Arbitration
	  	 	49	  
	 13.8
	  	 Partition
	  	 	51	  
	 13.9
	  	 Invalidity
	  	 	51	  
	 13.10
	  	 Successors and Assigns
	  	 	51	  
	 13.11
	  	 Entire Agreement
	  	 	51	  
	 13.12
	  	 Waivers
	  	 	51	  
	 13.13
	  	 No Brokers
	  	 	52	  
	 13.14
	  	 Confidentiality
	  	 	52	  
	 13.15
	  	 No Third Party Beneficiaries
	  	 	52	  
	 13.16
	  	 Power of Attorney
	  	 	52	  
	 13.17
	  	 Invalidity
	  	 	52	  
	 13.18
	  	 Construction of Documents
	  	 	53	  

  

			
	Schedule 1.1	  	List of Facilities
	Schedule 3.5	  	Major Decisions
	Schedule 6.1	  	Percentage Interests of the Members
	Exhibit A	  	Approved Budget

 THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this
“Agreement”) OF CNLSUN PARTNERS II, LLC (the “Company”) is entered into effective as of August 2, 2011 (the “Effective Date”), by and among Sunrise Senior Living Investments, Inc., a Virginia
corporation (“Sunrise”), and CNL Income SL II Holding, LLC, a Delaware limited liability company (“CNL”). 
 RECITALS 
 WHEREAS, the Company was formed pursuant to a Limited Liability
Company Agreement dated as of June 8, 2011 (the “Original Agreement”) and a Certificate of Formation was filed with the Secretary of State of the State of Delaware on June 8, 2011. 

WHEREAS, pursuant to the Transfer Agreement (hereinafter defined) the Company has acquired one hundred percent (100%) of the
membership interests in MetSun Two Pool One, LLC, a Delaware limited liability company (the “Old Venture”). 

WHEREAS, the Members desire to amend and restate the terms of the Original Agreement, to reflect, among other items, the admission of CNL
as a Member, and the agreements between the Members with respect to the Company in connection therewith. 
 NOW, THEREFORE, in
order to carry out their intent as expressed above and in consideration of the mutual agreements hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby amend
and restate the Original Agreement in its entirety, as follows: 
 ARTICLE 1 

DEFINITIONS 
 1.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth below, which meanings shall be applicable equally to the singular and plural of the terms defined:

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

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

“Accounting Period” shall mean and refer to a calendar month. 

“Act” shall mean the Delaware Limited Liability Company Act (6 Del. C. §18-101 et seq.), as
amended from time to time. 
 “Adjusted Basis” shall mean the basis for determining gain or
loss for federal income tax purposes from the sale or other disposition of property, as defined in Section 1011 of the Code. 
 “Adjusted Capital Account Deficit” shall mean, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant Fiscal Year,
after giving effect to the following adjustments: 

  
 1 

 (a) Credit to such Capital Account any amounts which such Member is
obligated to restore or is deemed to be obligated to restore pursuant to Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 
 (b) Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4) (reasonably expected adjustments for depletion allowances), 1.704-1(b)(2)(ii)(d)(5) (certain other reasonably
expected allocations of loss or deduction), and 1.704-1(b)(2)(ii)(d)(6) (reasonably expected distributions) of the Regulations. 
 The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently
therewith. 
 “Affiliate” means a Person, which controls, is controlled by, or is under common
control with another Person. For the purposes of this definition, “control” means the power to direct the management and policies of a Person, directly or indirectly, whether through the ownership of voting securities or other beneficial
interest, by contract or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. A Person shall not be deemed to be under common “control” with another Person solely based
on the fact that one or more Person(s) serve as a director of both Persons. 
 “Affiliate
Guaranties” or “Affiliate Guaranty” means a customary indemnity or carve-out guaranty, (or guaranties) or similar limited recourse undertakings (that may spring into full recourse in certain limited carve-out events) made by
Sunrise Guarantor and/or CNL Guarantor for the benefit of Lender relating to the Existing Financing (as modified by the Existing Financing Modification) (including, without limitation (a) those certain Amended and Restated ERISA Guaranty
Agreements, dated as of the date of the Existing Financing Modification, made by each Facility Entity, the Company, CNLSun Two Pool One, LLC, CNL Income SL II TRS Corp., CNL Guarantor and Sunrise Guarantor in favor of Lender and (b) those
certain Amended and Restated Limited Recourse Liability Guaranties, dated as of the date of the Existing Financing Modification, made by Sunrise Guarantor and CNL Guarantor in favor of Lender) or under any future refinancing approved by all the
Members pursuant to Section 3.5 of this Agreement. 
 “Agreement” shall mean this Amended
and Restated Limited Liability Company Agreement of the Company, as it may hereafter be amended or modified from time to time. 
 “Appointed Arbitrator” shall have the meaning set forth in Section 13.7(b). 
 “Approved Budget” shall have the meaning set forth in a Management Agreement. 
 “Arbitration Notice” shall have the meaning set forth in Section 13.7(b). 
 “Arbitration Proceeding” shall have the meaning set forth in Section 13.7(a). 
 “Assignee” shall mean a Person to whom an Interest has been transferred in accordance with this Agreement and who has not been admitted as a Member. 

“Bankruptcy” shall mean, with respect to the affected party, (a) the entry of an order for relief
under the Bankruptcy Code, (b) the admission by such party of its inability to pay its debts 

  
 2 

 
as they mature, (c) the making by it of an assignment for the benefit of creditors, (d) the filing by it of a petition in bankruptcy or a petition for relief under the Bankruptcy Code
or any other applicable federal or state bankruptcy or insolvency statute or any similar law, (e) the application by such party for the appointment of a receiver for the assets of such party, (f) the filing of an Involuntary Bankruptcy
petition against it that is not dismissed for 60 or more days, or (g) the imposition of a judicial or statutory lien on all or a substantial part of its assets. With respect to a Member, this definition of Bankruptcy supersedes the definition
of Bankruptcy set forth in Sections 18-101(1) and 18-304 of the Act. 
 “Bankruptcy Code” shall
mean Title 11 of the United States Code, as amended from time to time. 
 “Business Day” shall
mean any day other than (a) a Saturday or Sunday and (b) a day on which federally insured depositary institutions in the State of New York are authorized or obligated by law, governmental decree or executive order to be closed. 

“Buy-Sell Closing Date” shall have the meaning set forth in Section 12.1(c). 

“Buy-Sell Notice” shall have the meaning set forth in Section 12.1(a). 

“Buy-Sell Price” shall have the meaning set forth in Section 12.1(a). 

“Buy-Sell Seller” shall have the meaning set forth in Section 12.1(c). 

“Capital Account” when used in respect of any Member shall mean the Capital Account maintained for such
Member in accordance with Section 7.1, as said Capital Account may be increased or decreased from time to time pursuant to the terms of Section 7.1. 
 “Capital Call” shall mean any written notice given to the Members pursuant to Article 6, in accordance with the requirements of Section 13.2, requesting a Capital Contribution that
is required to be made by the Members pursuant to said Article 6. 
 “Capital Contribution”
when used with respect to any Member, shall mean the aggregate amount of capital contributed to the Company by such Member (and, for clarification, shall not include any consideration paid by a Member to another Member for its Interest). 

“Capital Proceeds” shall mean funds of the Company arising from a Capital Transaction, net of the actual
costs incurred by the Company with third parties in consummating the Capital Transaction. 
 “Capital
Transaction” shall mean any of the following: (a) a sale, exchange, transfer, assignment or other disposition of all or a portion of any Company Asset other than (i) tangible personal property that is not sold or transferred in
connection with the sale or transfer of real property or (ii) a leasehold interest in real property that is otherwise sold or transferred in the ordinary course of business; (b) any condemnation or deeding in lieu of condemnation of all or
a portion of any Company Asset; (c) any financing or refinancing of any Company Asset; (d) the receipt of proceeds due to any fire or other casualty to any Company Asset; and (e) any other transaction involving Company Asset, the
proceeds of which, in accordance with GAAP, are considered to be capital in nature. For purposes of distributions under Section 8.2, net proceeds from a Capital Transaction 

  
 3 

 
shall only include those distributions to be made to the Members under this Agreement after any third party payments relating to the Capital Transaction have been made. 

“Carrying Value” shall mean, with respect to any asset, the Adjusted Basis of the asset, except as follows: 

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

(c) The Carrying Value of an asset of the Company distributed to a Member shall be adjusted to equal the gross fair
market value of the asset on the date of distribution as determined by the Managing Member; and 
 (d) The
Carrying Values of the Company’s assets shall be increased (or decreased) to reflect any adjustments to the Adjusted Basis of those assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that those adjustments are
taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-l(b)(2)(iv)(m); but the Carrying Values shall not be adjusted pursuant to this clause (d) to the extent the Managing Member determines that an
adjustment pursuant to clause (b) above is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d). 

If the Carrying Value of an asset is determined or adjusted pursuant to clauses (a), (b) or (d), such Carrying Value
shall thereafter be adjusted by the Depreciation taken into account with respect to the asset for purposes of computing Profit and Loss. 
 “Certificate” shall mean the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware on June 8, 2011, as the same may hereafter be amended
and/or restated from time to time. 
 “Claim” shall mean any claim or demand for payment made
by Lender to a Sunrise Guarantor or CNL Guarantor under any of the Affiliate Guaranties. 
 “Closing
Date” shall have the meaning set forth in Section 12.5(a). 
 “CLP” shall mean CNL
Lifestyle Properties, Inc. 

  
 4 

 “CLP Liquidity Event” means any merger, reorganization,
business combination, share exchange, acquisition by any Person or related group of Persons of beneficial ownership of all or substantially all of the equity shares of CLP in one or more related transactions, or other similar transaction involving
CLP or CNL Guarantor pursuant to which CLP’s stockholders receive for their equity shares, as full or partial consideration, cash, listed or non-listed equity securities or combination thereof, or a sale of all or substantially all of the
assets of CLP. 
 “CNL” shall have the meaning set forth in the preamble of this Agreement, and
shall include any of its assignees or transferees to the extent permitted in this Agreement, but only so long as any such Person continues in its capacity as a Member in the Company. 

“CNL Guarantor” shall mean CNL Income Partners LP or another Affiliate of CNL acceptable to Lender.

 “CNL Put Interest” shall have the meaning set forth in Section 12.4. 

“CNL Put Purchase Price” shall have the meaning set forth in Section 12.4. 

“CNL Put Right” shall have the meaning set forth in Section 12.4. 

“CNL Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the extent resulting from
gross negligence, willful misconduct or fraud of CNL or any Affiliate of CNL. 
 “CNL Total Capital
Contribution” shall mean the Initial Capital Contributions, the Cap Ex Contributions and all additional Capital Contributions, in each case made by CNL. 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any corresponding
provision(s) of succeeding law. 
 “Company” shall have the meaning set forth in the preamble
of this Agreement. 
 “Company Assets” shall mean all right, title and interest of the Company
in and to all or any portion of the assets of the Company and any property acquired in exchange therefor or in connection therewith. 
 “Company Minimum Gain” shall have the same meaning as the term “partnership minimum gain” set forth in Sections 1.704-2(b)(2) and 1.704-2(d) of the Regulations. 

“Company Year” shall mean a twelve (12) month period starting on the first day of the month in
which the Effective Date occurs or each anniversary thereof and ending on the day immediately preceding the following twelve (12) month period. 
 “Competitor” shall mean any Person which is regularly engaged in the business of directly or indirectly operating or managing real estate that (i) either directly or indirectly,
operates or manages a brand of retirement communities totaling at least ten (10) retirement communities and/or (ii) either directly or indirectly, operates or manages a group of retirement communities totaling at least ten
(10) retirement communities that are not affiliated with a brand but that are marketed and operated as a collective group. Notwithstanding the foregoing, the Members agree that the term “Competitor” shall specifically exclude any
entity that operates or is qualified as a Real Estate Investment Trust under applicable United States state and federal laws, rules and regulations. 

  
 5 

 “Confidential Information” shall have the meaning set forth
in Section 13.14. 
 “Contributing Member” shall have the meaning set forth in
Section 6.5. 
 “Costs” shall have the meaning set forth in Section 4.3(a).

 “Debt-Financed Distribution” shall have the meaning set forth in the Recitals. 

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

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

“11.5% Cumulative Return” means, for CNL as of any date, the amount, if any, that would be required to be distributed on
such date so that the aggregate distributions to CNL pursuant to Section 8.1(c)(i) provide a cumulative, annually compounded return of 11.5% per annum on CNL’s Capital Contributions to the Company. Such amount will be calculated on
the basis of the actual number of days elapsed from and including the date on which each Capital Contribution is accepted by the Company to and including the dates that distributions constituting a return of such Capital Contributions were made.

 “11.5% Return” means, for Sunrise as of any date, the amount, if any, that would be required
to be distributed on such date so that the aggregate distributions to Sunrise pursuant to Section 8.1(c)(ii) provide a noncompounded return of 11.5% on Sunrise’s Capital Contributions to the Company. 

“Emergency Expenses” shall have the meaning set forth in a Management Agreement. 

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

“Excluded Property” shall mean, with respect to each Facility: (a) any right, title or interest in
the name “Sunrise” or “Sunrise Senior Living,” any combination or variation thereof or any other trademark or trade name used by Sunrise or its Affiliates, (b) all property owned by Sunrise or any of its Affiliates, not
normally located at the Facility and used, but not exclusively, in connection with the development of the Facilities; and (c) all items, tangible or intangible, relating to a Facility which Sunrise or any of its Affiliates reasonably considers
proprietary, including, without limitation, any item with the Sunrise name or logo imprinted on it. 
 “Existing
Financing” means the existing mortgage indebtedness secured by the Facilities issued on or about March 11, 2008 as evidenced by that certain Collateral Loan Agreement and related mortgages and additional loan documents by the Facility
Entities and Operating Lessees in favor of The Prudential Life Insurance Company of America (each as amended and restated in connection with the Existing Financing Modification). 

  
 6 

 “Existing Financing Maturity Date” means April 5,
2014, as same may be extended pursuant to the terms and conditions of the Loan Documents. 
 “Existing
Financing Modification” means the modification of the Loan Documents as evidenced by that certain Amended and Restated Collateral Loan Agreement and related amended and restated mortgages and additional loan documents, dated on or about the
date hereof. 
 “Facility” shall mean an assisted living facility listed on Schedule 1.1
and shall include all real property, including, without limitation, the Improvements and related personal property comprising each such Facility (and shall exclude any Excluded Property) and owned by a Facility Entity. 

“Facility Documents” shall mean, with respect to a particular Facility, (a) a Management Agreement,
(b) the Manager Pooling Agreement, (c) the Operating Lease and all other agreements relating to the Facility. 
 “Facility Entity” shall mean a limited liability company or limited partnership Subsidiary which owns the fee interest in, or is the ground lessee of, a Facility, including, without
limitation, any Subsidiary formed by the Company pursuant to this Agreement for the purpose of acquiring, owning, developing, financing, constructing, operating and/or selling a Facility. 

“Facility Expenses” shall have the meaning set forth in a Management Agreement. 

“Facility Manager” shall mean Sunrise Senior Living Management, Inc., a Virginia corporation, or any
successor manager under the Management Agreements. 
 “FF&E Estimate” shall have the
meaning set forth in a Management Agreement. 
 “Fiscal Year” shall mean the fiscal year of
this Company, which shall be the calendar year; provided that the first Fiscal Year of the Term shall commence on the Effective Date and shall end on the last day of the calendar year in which the Effective Date occurs and the last Fiscal Year of
the Term shall end on the last day of the Term and shall commence on the first day of the calendar year in which such last day occurs. 
 “14% Cumulative Return” means, (a) for CNL as of any date, the amount, if any, that would be required to be distributed on such date so that the aggregate distributions to CNL
pursuant to Sections 8.2(a)(i) and 8.2(b)(i) provide a cumulative, annually compounded return of 14% per annum on CNL’s Capital Contributions to the Company and (b) for Sunrise as of any date, the amount, if any, that would be
required to be distributed on such date so that the aggregate distributions to Sunrise pursuant to Sections 8.2(a)(ii) and 8.2(b)(ii) provide a cumulative, annually compounded return of 14% per annum on Sunrise’s Capital Contributions to
the Company. Such amounts will be calculated on the basis of the actual number of days elapsed from and including the date on which each Capital Contribution is accepted by the Company to and including the dates that distributions constituting a
return of such Capital Contributions were made. 
 “GAAP” shall mean generally accepted
accounting principles in the United States of America. 
 “Gross Revenues” shall have the
meaning set forth in a Management Agreement. 

  
 7 

 “Improvements” shall mean all structures and buildings
located on the Property. 
 “Indemnified Person” shall have the meaning set forth in
Section 4.3(a). 
 “Index” shall have the meaning set forth for such term in a Management
Agreement. 
 “Initial Arbitrator” shall have the meaning set forth in Section 13.7(b).

 “Interest” shall mean the entire limited liability company interest of a Member in the
Company at any particular time, including, without limitation, the right of such Member to any and all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of such Member to comply with all the
terms and provisions of this Agreement. For purposes of clarity, the Interest of CNL shall include CNL’s rights and obligations as Managing Member hereunder. 

“Internal Rate of Return” shall mean, the internal rate of return calculated by using a “XIRR”
function using exact dates for all contributions and disbursements made by or to the Members. Any payments received from a Non-Contributing Member to repay a Member Loan shall not be included in the internal rate of return calculation. 

“IRS” shall mean the Internal Revenue Service and any successor agency or entity thereto. 

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

“Major Decisions” shall mean the decisions set forth in Annex A. 

“Management Agreement” shall mean, with respect to a Facility, a Management Agreement among the Company,
Facility Manager and applicable Operating Lessee, executed or to be executed in connection with the management of the Facility, as it may hereafter be amended or modified from time to time. 

“Manager Pooling Agreement” shall mean that certain Manager Pooling Agreement by and among all of the
Facility Entities, the Facility Manager and the Company for the pooled management of the Facilities, dated as of the Effective Date, as it may hereafter be amended or modified from time to time. 

  
 8 

 “Managing Member” shall have the meaning set forth in
Section 3.1. 
 “Material Contract” shall mean any contract, lease, license or other
agreement pursuant to which the Company is obligated to pay or expend more than $50,000 in any Fiscal Year. 

“Member” shall mean each of CNL, Sunrise and the Managing Member, and any Substituted Member who is
admitted as a member of the Company after the Effective Date. 
 “Member Loan” shall have the
meaning set forth in Section 6.5. 
 “Member Loan Rate” shall mean five percent
(5%) per annum, compounded annually. 
 “Member Minimum Gain” shall mean the amount, with
respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3). 

“Member Nonrecourse Debt” shall have the same meaning as the term “partner nonrecourse debt”
set forth in Regulations Section 1.704-2(b)(4). 
 “Member Nonrecourse Deductions” shall
have the same meaning as “partner nonrecourse deductions” set forth in Regulations Section 1.704-2(i)(1) and (2). The amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a Fiscal Year equals the
excess, if any, of the net increase, if any, in the amount of Member Minimum Gain attributable to such Member Nonrecourse Debt during that Fiscal Year over the aggregate amount of any distributions during that Fiscal Year to the Member that bears
the economic risk of loss for such Member Nonrecourse Debt to the extent such distributions are from the proceeds of such Member Nonrecourse Debt and are allocable to an increase in Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined according to the provisions of Regulations Section 1.704-2(i)(2). 
 “Net Operating Cash
Flow” for any month or Fiscal Year, shall mean the excess, if any, of (a) the sum of (i) the amount of all cash receipts of the Company during such month or Fiscal Year from whatever source plus (ii) any working
capital or any reserves in the form of cash of the Company existing at the start of such month or Fiscal Year less (b) the sum of (i) all cash amounts paid or payable (without duplication) in that period on account of any expense
incurred in connection with the Company’s business plus (ii) any cash reserves the Managing Member determines may be required for the working capital, capital expenditures and future needs of the Company or any Facility Entity. Net
Operating Cash Flow shall exclude Capital Proceeds. 
 “Non-Contributing Member” shall have the
meaning set forth in Section 6.5. 
 “Non-Discretionary Items” shall mean (i) real
estate taxes, (ii) insurance premiums, (iii) regular payments of debt service and any reserve amounts due under the Existing Financing or any future refinancing thereof (but excluding the principal amount of such indebtedness at the
maturity date of such Refinancing, as the same may be accelerated), (iv) amounts necessary to pay judgments or liens against (a) the Company, (b) any of the Company assets, (c) any of the Subsidiaries or (d) any
Subsidiary’s assets (including, without limitation, the Property), and which, in 

  
 9 

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

“Nonrecourse Liability” shall have the meaning set forth in Sections 1.704-2(b)(3) and 1.752-1(a)(2) of
the Regulations. 
 “Non-Transferor Member” shall have the meaning set forth in
Section 12.2(a). 
 “Objection Notice” shall have the meaning set forth in
Section 13.7(b). 
 “OD Loans” shall have the meaning set forth in a Management Agreement.

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

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

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

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

“Operating Lease” shall mean, with respect to each Facility, that certain lease agreement by and between
a Facility Entity and an Operating Lessee. 
 “Operating Lessee” shall mean each of the
following Subsidiaries of the Company: (a) CNLSun Two McCandless PA Senior Living, LP, (b) SNLSun Tow Simi Valley CA Senior Living LP, (c) Sunrise Bloomfield South MI Senior Living LLC, (d) Sunrise Johns Creek GA Senior Living,
LLC, (e) CNLSun Two Broomfield CO Senior Living LLC and (f) Sunrise Wake County NC Senior Living, LLC. 
 “Option Price” shall have the meaning set forth in Section 12.1. 
 “Organizational Document” shall mean, with respect to any Person: (a) in the case of a corporation, such Person’s certificate of incorporation and by-laws, and any shareholder
agreement, voting trust or similar arrangement applicable to any of such Person’s authorized shares of capital stock; (b) in the case of a partnership, such Person’s certificate of limited partnership, partnership agreement, voting
trusts, statement of qualification or similar arrangements applicable to any of its partnership interests; (c) in the case of a limited liability company, such Person’s certificate of formation or articles of organization, limited
liability company operating agreement or other 

  
 10 

 
document affecting the rights of holders of limited liability company interests; or (d) in the case of any other legal entity, such Person’s organizational documents and all other
documents affecting the rights of holders of equity interests in such Person. 
 “Original
Agreement” shall have the meaning set forth in the Recitals. 
 “Partially Adjusted Capital Account”
shall mean, with respect to any Member for any Fiscal Year, the Capital Account balance of such Member at the beginning of such period, adjusted as set forth in the definition of Capital Account for all contributions and distributions during such
period and all special allocations pursuant to Section 7.3 with respect to such period but before giving effect to any allocation with respect to such period pursuant to Section 7.2. 

“Percentage Interest” shall mean, with respect to any Member, the percentage interest listed for each Member in
Schedule 6.1, as the same may be adjusted pursuant to the terms of this Agreement. 

“Person” shall mean any individual, partnership, corporation, limited liability company, trust or other
legal entity. 
 “Prohibited Person” shall have the meaning set forth in Section 4.7.

 “Profits and Losses” shall mean, for each Fiscal Year or other period, an amount equal to the Company’s
taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be
included in taxable income or loss), with the following adjustments: 
 (e) Any income of the Company that is
exempt from federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss; 
 (f) Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not
otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss; 
 (g) In the event the Carrying Value of any Company asset is adjusted pursuant to subparagraph (b) or subparagraph (c) of the definition of Carrying Value herein, the amount of such adjustment
shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; 
 (h) Gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Carrying Value of
the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Carrying Value; 
 (i) In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account

  
 11 

 
Depreciation for such Fiscal Year or other period, computed in accordance with the terms of this Agreement; and 

(j) Notwithstanding any other provision of this Agreement, any items which are specially allocated pursuant to
Section 7.3 shall not be taken into account in computing Profits or Losses. In addition, any items which are specially allocated pursuant to Sections 7.2(a) or 7.2(b) shall not be taken into account in computing Profits and Losses for purposes
of Section 7.2(c). 
 “Property” shall mean the real property owned by any Facility Entity
and upon which a Facility has been constructed. 
 “Proposed Budget” shall have the meaning set
forth in Section 5.5(b). 
 “Purchase Option Closing Date” shall have the meaning set
forth in Section 12.1(b). 
 “Purchase Option Lockout Period” shall have the meaning set
forth in Section 12.1(a). 
 “Purchase Option Notice” shall have the meaning set forth in
Section 12.1(a). 
 “Purchase Option Termination Date” shall have the meaning set forth in
Section 12.1(a). 
 “Purchaser” shall have the meaning set forth in Section 12.4(a).

 “Put Notice” shall have the meaning set forth in Section 12.4. 

“Put Exercise Closing Date” shall have the meaning set forth in Section 12.4. 

“Put Exercise Outside Closing Date” shall have the meaning set forth in Section 12.4. 

“Regulations” shall mean the permanent and temporary regulations, and all amendments, modifications and
supplements thereof, from time to time promulgated by the Department of the Treasury under the Code. 

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

“Reply Notice” shall have the meaning set forth in Section 12.1(b). 

“Resident Agreement Documents” means the resident agreements with respect to the residents of the
Facilities approved by the Members as of the Effective Date. 
 “Restricted Transferee” shall
have the meaning set forth in Section 9.5. 
 “ROFO Amount” shall have the meaning set
forth in Section 12.3(a). 
 “ROFO Closing Date” shall have the meaning set forth in
Section 12.5(a). 
 “ROFO Recipient” shall have the meaning set forth in Section 12.5(a).

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

  
 12 

 “Secondary Objection Notice” shall have the meaning set
forth in Section 13.7(b). 
 “Seller” shall have the meaning set forth in
Section 12.5(a). 
 “Selling Amount” shall have the meaning set forth in
Section 12.1(a). 
 “Subsidiary” shall mean any entity in which the Company holds any
ownership interests, whether directly or indirectly through one or more Persons. 
 “Substituted
Member” shall mean any Person admitted to the Company as a Member pursuant to the provisions of Section 9.3. 

“Sunrise” shall have the meaning set forth in the preamble of this Agreement, and shall include any of its assignees or
transferees to the extent permitted in this Agreement, but only so long as any such Person continues in its capacity as a Member in the Company. 
 “Sunrise Guarantor” shall mean Sunrise Senior Living, Inc., a Delaware corporation, or another Affiliate of Sunrise acceptable to Lender. 

“Sunrise Person” shall mean Sunrise or an Affiliate of Sunrise. 

“Sunrise Purchase Option” shall have the meaning set forth in Section 12.1(a). 

“Sunrise Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the extent resulting from (a) the
gross negligence, willful misconduct or fraud of a Sunrise Guarantor or any Affiliate of a Sunrise Guarantor or (b) acts, events or omissions occurring prior to the Effective Date.

“Sunrise Total Capital Contribution” shall mean the Initial Capital Contributions and all additional
Capital Contributions actually made by Sunrise. 
 “Target Capital Account” shall mean, with respect to any
Member for any Fiscal Year or other period, an amount (which may be either a positive or negative balance) equal to (a) the hypothetical distribution (if any) such Member would receive if all Company assets, including cash, were sold for cash
equal to their Carrying Values (taking into account any adjustments to Carrying Values for such period), all Company liabilities were satisfied in cash according to their terms (limited, with respect to each Nonrecourse Liability of the Company, to
the Carrying Values of the assets securing such liability), and the net proceeds of such sale to the Company (after satisfaction of said liabilities) were distributed in full pursuant to Section 10.3 on the last day of such period, minus
(b) the sum of (i) such Member’s share of Company Minimum Gain and Member Minimum Gain immediately prior to such deemed sale, plus (ii) the amount, if any, which such Member is obligated to contribute to the capital of the
Company pursuant to the terms of this Agreement as of the last day of such period (but only to the extent such capital contribution obligation has not been taken into account in determining such Member’s share of Member Minimum Gain).

 “Tax Matters Member” shall mean the Managing Member. 

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

  
 13 

 “Third Party Costs and Expenses” shall mean, with respect
to each Claim made against a Sunrise Guarantor, the reasonable third party costs and expenses actually incurred by a Sunrise Guarantor in connection with such Claim, including, without limitation, reasonable costs and expenses (including legal fees
and expenses) of settlement discussions, litigation, arbitration, mediation or other proceedings relating to the Claim. 
 “13% Cumulative Return” means, for CNL as of any date, the amount, if any, that would be required to be distributed on such date so that the aggregate distributions to CNL pursuant to
Section 8.1(a)(i) provide a cumulative, annually compounded return of 13% per annum on CNL’s Capital Contributions to the Company. Such amount will be calculated on the basis of the actual number of days elapsed from and including the
date on which each Capital Contribution is accepted by the Company to and including the dates that distributions constituting a return of such Capital Contributions were made. 

“13% Return” means, for Sunrise as of any date, the amount, if any, that would be required to be
distributed on such date so that the aggregate distributions to Sunrise pursuant to Section 8.1(a)(ii) provide a noncompounded return of 13% on Sunrise’s Capital Contributions to the Company. 

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

“Transfer Agreement” means that certain Transfer Agreement dated as of July 8, 2011 by and among
Master MetSun Two, LP, Sunrise, the Company, and CNL Income Partners, LP. 
 “Transfer
Expenses” mean any customary transaction expenses in connection with a sale of the Facilities, including, without limitation, brokerage commissions, transfer taxes, loan prepayment fees and other costs, to the extent the same are saved in
the proposed Transfer between the Members; such expenses to be reasonably determined by an independent accountant of the Company in a manner consistent with then customary market practices for properties similar to the Facilities and to be allocated
equitably among the Members in accordance with their Percentage Interests. 
 “Transfer Notice”
shall have the meaning set forth in Section 12.2(a). 
 “Transfer Price” shall have the meaning
set forth in Section 12.2(a). 
 “Transfer Price Notice” shall have the meaning set forth
in Section 12.2(a). 
 “Transferor Member” shall have the meaning set forth in
Section 12.2(a). 
 “12% Cumulative Return” means, for CNL as of any date, the amount, if
any, that would be required to be distributed on such date so that the aggregate distributions to CNL pursuant to Section 8.1(b)(i) provide a cumulative, annually compounded return of 12% per annum on CNL’s Capital Contributions to
the Company. Such amount will be calculated on the basis of the actual number of days elapsed from and including the date on which each Capital Contribution is accepted 

  
 14 

 
by the Company to and including the dates that distributions constituting a return of such Capital Contributions were made. 

“12% Return” means, for Sunrise as of any date, the amount, if any, that would be required to be distributed on such
date so that the aggregate distributions to Sunrise pursuant to Section 8.1(b)(ii) provide a noncompounded return of 12% on Sunrise’s Capital Contributions to the Company. 

“UCC” shall mean the Uniform Commercial Code as in effect in the State of Delaware, as amended from time to time, or any
corresponding provision(s) of succeeding law. 
 “Venue” shall have the meaning set forth in
Section 13.7(a). 
 1.2 General Interpretive Principles. 

(a) All references to sections, schedules and exhibits are to sections, schedules and exhibits in or to this Agreement
unless otherwise specified. 
 (b) Unless otherwise specified, the words hereof, herein and hereunder and words
of similar import will refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 (c) If the context requires, the use of any gender will also refer to any other gender, and the use of either number will also refer to the other number. The word including is not exclusive; if exclusion
is intended, the word comprising is used instead. The word or will be construed to mean and/or unless the context clearly prohibits that construction. 
 (d) All terms that are defined by the UCC have the same meanings assigned to them by the UCC, unless (and to the extent) they are varied by this Agreement. 

(e) All accounting terms not specifically defined have the meanings determined by reference to GAAP. 

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

 (i) The term presumed means presumed subject to rebuttal and the burden of proof is on the Person seeking to
rebut the fact presumed. 
 (j) All yields and interest rates will be calculated on a the basis of a 360-day
year. 

  
 15 

 (k) Any consent required by a Member that is described in this Agreement as
not to be unreasonably withheld shall mean that such consent shall not be unreasonably withheld, conditioned or delayed. 

ARTICLE 2 

THE COMPANY AND ITS BUSINESS 
 2.1 Company Name. The business of the Company shall be conducted under the name of “CNLSun Partners II, LLC” in the State of Delaware and under such name or such assumed names as the
Managing Member deems necessary or appropriate to comply with the requirements of any other jurisdiction in which the Company may be required to qualify. 
 2.2 Term. The term of the Company shall have commenced on the date of the filing of the Certificate of Formation with the State of Delaware and shall continue in full force and effect until the
date that is the later of (a) the thirty (30) year anniversary of the Effective Date or (b) the date on which the term of the last Management Agreement expires, including any renewals thereof, unless sooner terminated as hereinafter
provided (“Term”). 
 2.3 Filing of Certificate and Amendments. The Certificate of Formation was filed
with the Secretary of State of the State of Delaware. The Managing Member hereby agrees to cause the execution and filing of any required amendments to the Certificate of Formation and shall do all other acts requisite for the constitution of the
Company as a limited liability company pursuant to the laws of the State of Delaware or any other applicable law. 
 2.4
Business; Scope of Members’ Authority. 
 (a) The Company is formed for the purpose of
(i) directly or through Subsidiaries, engaging in the acquisition, ownership, development, financing, construction, management and sale of senior living facilities throughout the United States, and (ii) transacting any and all lawful
business that is incident, necessary or appropriate to accomplish the foregoing. 
 (b) Except as otherwise
expressly and specifically provided in this Agreement, no Member shall have the authority to bind, to act for, or to assume any obligation or responsibility on behalf of, the Company or any other Member. Neither the Company nor any Member shall, by
virtue of executing this Agreement, be responsible or liable for any indebtedness or obligation of any other Member incurred or arising either before or after the Effective Date of this Agreement, except, as to the Company, as to those joint
responsibilities, liabilities, indebtedness, or obligations expressly assumed by the Company as of the Effective Date or incurred after the Effective Date pursuant to and as limited by the terms of this Agreement. 

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

  
 16 

 
agent and the Company’s registered and principal offices by complying with the relevant requirements of the Act. 
 2.6 Authorized Persons. The Person who executed, delivered and filed the Certificate of Formation with the Office of the Delaware Secretary of State is an authorized person within the meaning of
the Act, and upon the filing of the Certificate of Formation with the Office of the Delaware Secretary of State, his or her powers as an authorized person ceased. The Managing Member is hereby designated as an “authorized person” within
the meaning of the Act. Any one of such authorized persons is hereby authorized to execute, deliver and file any other certificates or documents (and any amendments and/or restatements thereof) on behalf of the Company. The existence of the Company
as a separate legal entity shall continue until cancellation of the Certificate of Formation as provided in the Act. 
 2.7
Representations by Members. Each Member represents, warrants, covenants and acknowledges that (a) it is a corporation, limited liability company or limited partnership duly organized or formed and is in good standing in the jurisdiction
in which it has been organized or formed, (b) it has the power and authority to authorize the execution, delivery and performance of this Agreement, (c) it has been duly authorized and is otherwise duly qualified to purchase and hold its
Interest and to execute and deliver this Agreement and all other instruments executed and delivered on behalf of it in connection with the acquisition of its Interest, (d) the person or persons executing and delivering this Agreement on behalf
of a Member are duly authorized to do so, (e) the consummation of such transactions will not result in a breach or violation of, or a default under, its charter or bylaws, if such Member is a corporation, or its certificate of limited
partnership or its partnership agreement, if such Member is a partnership, or its operating agreement if such Member is a limited liability company, or any existing agreement by which it or any of its assets are bound, and (f) this Agreement is
a valid and binding agreement on the part of such Member enforceable in accordance with its terms against such Member, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors and general principles of equity. 
 2.8 Organization
Expenses. Each Member shall bear the costs of its own legal counsel and other professional advisors in connection with the negotiation of this Agreement. All out-of-pocket expenses that have been incurred by or on behalf of the Company by a
Sunrise Person or a CNL Person on or prior to the Effective Date shall be expenses of the Company; provided, that, the Members acknowledge that certain expenses incurred prior to the Effective Date shall be governed in accordance with that certain
Framework Agreement, dated as of July 8, 2011, among Sunrise, Manager, CNL Income Partners, LP and the Company (the “Framework Agreement”). 
 2.9 Opt-in to Article 8. 
 (a) Each Interest shall be
personal property for all purposes and shall constitute a “security” within the meaning of, and governed by, Article 8 of the UCC. 
 (b) The Interests shall be “uncertificated securities” within the meaning of Article 8 of the UCC. 
 (c) The Company shall maintain books for the purpose of registering the transfer of any Interests. Subject to the provisions of Article 9 herein, no transfer of an Interest shall be

  
 17 

 
effective until the transfer of the Interest is registered upon the books maintained for that purpose by or on behalf of the Company. 

(d) A Transfer of the Interests may be registered as provided in Section 8-102(a)(13) of Article 8 of the UCC and
the Interests may be divisible into different classes or series of interests or obligations of the Company. 
 2.10
Securities Laws Restrictions. The Interests have not been registered under the Securities Act of 1933, as amended, or under the securities laws of the State of Delaware or any other jurisdiction. Consequently, the Interests may not be sold,
Transferred, assigned, pledged, hypothecated or otherwise disposed of, except in accordance with the provisions of such laws and this Agreement. 
 ARTICLE 3 
 MANAGEMENT OF COMPANY BUSINESS 

3.1 Appointment of Managing Member. CNL will be the Managing Member (“Managing Member”) of the Company with the
rights and responsibilities set forth in this Agreement. The rights of the Managing Member may not be assigned to any other Person whether voluntarily or by operation of law. The duties of the Managing Member may not be delegated to any other Person
whether voluntarily or by operation of law. Nothing in the preceding sentence is intended to prohibit or restrict the Managing Member from engaging a Sunrise Person, accountants, lawyers and other professional and independent service providers for
the purpose of performing services for the Company. 
 3.2 Duties of Managing Member. Subject to obtaining the unanimous
consent of the Members to all Major Decisions as set forth in Section 3.5, the Managing Member will have the authority and the duty to manage the Company and implement the purposes of the Company in accordance with the terms of this
Agreement acting in a prompt and businesslike manner, and exercising such care and skill as a prudent owner with sophistication and experience in owning, operating and managing facilities similar to the Facilities would exercise in dealing with its
own facility. The Managing Member will devote such time to the Company and its business as is reasonably necessary to conduct the operations of the Company and to carry out the Managing Member’s responsibilities. Subject to
Section 3.5 the Managing Member shall have the following rights and authority to act on behalf of the Company: 
 (a) To execute any contracts on behalf of the Company. 
 (b) To
form Subsidiaries, including, without limitation, the Facility Entities and Operating Lessees. 
 (c) To collect
revenues generated by the Company and to pay all expenses of the Company as permitted under this Agreement. 

(d) To establish, maintain and draw upon checking, savings and other accounts in the name of the Company as provided in
Section 3.3. 
 (e) To make any tax elections to be made by the Company. 

  
 18 

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

(g) To enter into, or cause its Subsidiaries to enter into, all Facility Documents. 

(h) To take all actions reasonably necessary to cause the Facility Manager to maintain in full force and effect all
licenses, permits, approvals and insurance required for the construction, operation and maintenance of the Facilities. 
 (i) To take all other actions reasonably necessary to implement the purposes of the Company. 
 (j) To do any and all of the foregoing upon such terms and conditions as the Managing Member in its reasonable discretion determines to be necessary, desirable or appropriate. 

The Managing Member may delegate any of the above responsibilities and obligations to any other Member of the Company upon reasonable
advance notice, provided that such Member agrees to such delegation. 
 3.3 Bank Accounts. The Company will maintain
separate bank accounts in such banks as the Managing Member may designate exclusively for the deposit and disbursement of the funds of the Company. All funds of the Company shall be promptly deposited in such accounts. The Managing Member from time
to time shall authorize signatories for such accounts. 
 3.4 Reimbursement for Costs and Expenses. Subject to the terms
of the Approved Budget, the Managing Member will fix the amounts, if any, which the Company will reimburse each Member for any costs and expenses incurred by such Member on behalf and for the benefit of the Company; provided, however, that except as
otherwise provided herein or in any separately-executed agreement relating to the business and operation of the Company, no overhead or general administrative expenses of any Person other than the Company itself shall be allocated to the operation
of the Company. The Managing Member in its capacity as Managing Member and not in its capacity as a Member shall not be entitled to any fee or compensation for performing its duties and obligations under this Agreement. 

3.5 Major Decisions. All of the actions listed on Schedule 3.5 (“Major Decisions”), shall require the
written approval of all Members, which approval shall be in the sole discretion of each Member. If a dispute or deadlock arises with respect to a Major Decision, the Members shall attempt to resolve such dispute during a sixty (60) day meet,
confer and cooling off period (the “Cooling Off Period”), upon the expiration of which without resolution the Members shall submit the Major Decision to arbitration in accordance with the provisions of Section 13.7. Either
party may initiate arbitration. Any Member may propose a Major Decision by sending written notice in accordance with Section 13.2 requesting the approval of such Major Decision; if a Member fails to respond to such request after five
(5) Business Days from receipt of the notice (or such longer time as expressly provided for in the notice), the proposing Member shall send another written notice to the other Member and if such Member fails to respond to such second request
after five (5) Business Days from receipt of the notice (or such longer time as expressly provided for in the notice), such Member will be deemed to have approved the Major Decision set forth in such notice. If CNL approves, or is deemed to
approve, a Major Decision proposed by Sunrise pursuant to this Section 3.5, CNL, in its capacity as Managing Member, shall be obligated to carry out the action that constitutes such Major Decision. 

  
 19 

 ARTICLE 4 
 RIGHTS AND DUTIES OF MEMBERS 
 4.1 Members Shall Not Have Power to Bind
Company. Except as set forth in Section 3.2 in its capacity as Managing Member (if applicable), no Member, acting solely in its capacity as a Member, shall transact business for the Company nor shall any Member, acting solely in its
capacity as a Member, have the power or authority to sign, act for or bind the Company. 
 4.2 Other Activities of the
Members. 
 (a) Each of the Members acknowledges that the Members will continue to pursue their separate
business opportunities outside of the Company and the Facilities. Each Member is free to pursue all such activities and may engage in or possess an interest in any other business venture or ventures of any nature and description and in any vicinity
whatsoever, independently or with others, including, without limitation, the ownership, development, financing, leasing, operation, management, syndication, brokerage, subdivision or sale of real property or senior living facilities and related
services, and neither the Company nor any other Member shall have any rights in and to such independent ventures or to income or profits derived therefrom. 
 (b) Each Member may engage or invest in any other activity or venture or possess any interest therein independently or with others. None of the Members, the Company or any other Person employed by,
related to or in any way affiliated with any Member or the Company shall have any duty or obligation to disclose or offer to the Company or the other Members, or obtain for the benefit of the Company or the other Members, any other activity or
venture or interest not made with respect to the Company or any Facility. None of the Company, the Members, the creditors of the Company or any other Person having any interest in the Company shall have any claim, right or cause of action against
any Member or any other Person employed by, related to or in any way affiliated with, any Member (i) by reason of any direct or indirect investment or other participation, whether active or passive, in any such activity or venture or interest
therein, or (ii) any right to any such activity or venture or interest therein or the income or profits derived therefrom. 

4.3 Indemnification. 
 (a) In the event that the Members (including the Managing Member), or any of their direct or indirect partners, directors, officers, stockholders, employees, incorporators, agents, affiliates or
controlling Persons (an “Indemnified Person”), become involved, in any capacity, in any threatened, pending or completed action, proceeding or investigation, in connection with any matter arising out of or relating to the
Company’s business or affairs, the Company will periodically reimburse such Indemnified Person for its reasonable legal and other expenses (including, without limitation, the cost of any investigation and preparation) incurred in connection
therewith, provided that such Indemnified Person shall promptly repay to the Company the amount of any such reimbursed expenses paid to it if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by the
Company in connection with such action, proceeding or investigation as provided in the exception contained in the next succeeding sentence. To the fullest extent permitted by law, the Company also will defend, indemnify and hold harmless an
Indemnified Person against any losses, claims, damages, liabilities, obligations, penalties, actions, judgments, suits, proceedings, costs, expenses and disbursements of any kind or nature whatsoever, including, without limitation, reasonable
attorney’s fees and costs (collectively, “Costs”) to which such an 

  
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Indemnified Person may become subject in connection with any matter arising out of or in connection with the Company’s business or affairs, except to the extent that any such Costs result
solely from the gross negligence, fraud, or willful misconduct of such Indemnified Person. If for any reason (other than the gross negligence, fraud, or willful misconduct of such Indemnified Person) the foregoing indemnification is unavailable to
such Indemnified Person, or insufficient to hold it harmless, then the Company shall contribute to the amount paid or payable by such Indemnified Person as a result of such Costs in such proportion as is appropriate to reflect not only the relative
benefits received by the Company on the one hand and such Indemnified Person on the other hand but also the relative fault of the Company and such Indemnified Person, as well as any relevant equitable considerations. The reimbursement, indemnity and
contribution obligations of the Company under this Section 4.3 shall be in addition to any liability which the Company may otherwise have to any Indemnified Person and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Company and any Indemnified Person. The reimbursement, indemnity and contribution obligations of the Company under this Section 4.3 shall be limited to the Company Assets, and no Member shall have any
personal liability on account thereof. The foregoing provisions shall survive any termination of this Agreement. 
 (b) To the fullest extent permitted by law, each Member shall defend and indemnify the Company and the other Members against, and shall hold it and them harmless from, any Costs as and when incurred by
the Company or the other Members in connection with or resulting from such indemnifying Member’s gross negligence, fraud, or willful misconduct. 
 (c) In addition to and not in limitation of any other indemnification obligations set forth in this Agreement, each Member shall indemnify the other with respect to: (i) any representations and
warranties made in the Loan Documents by the borrower thereunder which are made based upon the knowledge of the borrower thereunder; or (ii) any absolute representations and warranties made in the Loan Documents by the borrower thereunder of
which the borrower has knowledge to be incorrect and, in each of the foregoing, (i) and (ii), that (A) are untrue but not known to the indemnified Member at the closing of the Existing Financing Modification to be untrue, (B) can not
be cured within the cure period allowed in the Loan Documents with commercially reasonable efforts, and (C) result in an event of default or other liability to the Member being indemnified. As used in this Section 4.3(c), the term
“knowledge” and “known” shall mean, (x) with respect to Sunrise (or with respect to the borrower in the Loan Documents under subclause (i) above), the current, actual (not constructive, imputed or implied) knowledge,
after due inquiry, of Greg Neeb, Philip Kroskin, Edward Burnett and Jerry Liang, and (y) with respect to CNL, the current, actual (not constructive, imputed or implied) knowledge, after due inquiry, of Raymon Byron Carlock, Jr. and Joseph T.
Johnson. 
 4.4 Dealing with Members. The fact that a Member, an Affiliate of a Member, or any officer, director,
employee, member, partner, consultant or agent of a Member or an Affiliate, is directly or indirectly interested in or connected with any Person employed by the Company to render or perform a service, or from or to whom the Company may buy or sell
any property or have other business dealings, shall not prohibit a Member from employing such Person or from dealing with him or it on customary terms and at competitive rates of compensation, and neither the Company, nor any of the other Members
shall have any right in or to any income or profits derived therefrom by reason of this Agreement. 

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

4.8 Management Fees and OD Loans. The Members consent to the execution by the Company of the Management Agreements and Manager
Pooling Agreement, pursuant to which Facility Manager will receive certain fees and may make OD Loans or Pooled OD Loans to the Facilities as more specifically described in the Management Agreements and the Manager Pooling Agreement. 

  
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 ARTICLE 5 
 BOOKS AND RECORDS; REPORTS 
 5.1 Books and Records. At all times
during the continuance of the Company, the Managing Member, or such other Member as the Managing Member designates in accordance with the last sentence of Section 3.2, shall (a) keep or cause to be kept true and complete books and records,
including corporate and governance documents, of the Company and its Subsidiaries in which shall be entered each transaction of the Company and its Subsidiaries and (b) maintain and keep in good order the Organizational Documents of the Company
and its Subsidiaries and monitor corporate housekeeping issues relating to the Company and its Subsidiaries. Such books and records shall be kept on the basis of the Fiscal Year in accordance with the accrual method of accounting, and shall reflect
all transactions of the Company in accordance with GAAP. 
 5.2 Availability of Books and Records; Return of Books and
Records. All of the books and records referred to in Section 5.1 (which shall include an executed copy of this Agreement, the Certificate of Formation, and any amendments thereto) shall at all times be maintained at the principal office of
the Company or such other location as the Managing Member shall reasonably approve (which other location, upon such approval, shall be communicated to all of the Members), and shall be open to the inspection and examination of the Members or their
representatives during reasonable business hours upon reasonable prior notice to the Managing Member. 
 5.3 Reports and
Statements. Subject to the terms of Section 3.5, the Managing Member, or such other Member as the Managing Member designates in accordance with the last sentence of Section 3.2, shall be responsible for determining the need for
independent accountants, selecting the Company’s independent accountant’s, if any, and for preparing or overseeing the Company’s independent accountants in the preparation of all federal, state and local tax returns required to be
filed. The Managing Member shall, or, in the Managing Member’s sole discretion, such other Member as the Managing Member designates, shall cause the accountants to deliver to the Members completed IRS Schedules K-1 promptly upon receipt from
the independent accountants. Each Member shall notify the other Members upon receipt of any notice of tax examination of the Company by federal, state or local authorities. The Managing Member shall, or in the Managing Member’s sole discretion,
such other Member as the Managing Member designates shall deliver to the Company: (a) not later than the fifteenth (15th) day of each month monthly consolidated balance sheets and income statements for the Company prepared in accordance
with GAAP; (b) not later than the fifteenth (15th) day of each month, trial balances for the preceding month and year-to-date for: (i) the Company and each Subsidiary; (ii) each “Taxable REIT Subsidiary” (as
defined by the Code) owned by the Company or any Subsidiary, (iii) each entity owned by any “Taxable REIT Subsidiary” that is owned by the Company or any Subsidiary, and (iv) each of the Facility Entities owned by the Company or
any Subsidiary; (c) not later than fifteen (15) days after the end of each quarter, information (including detailed depreciation and basis information) in a format reasonably requested by CNL to be used by CNL, or a consultant engaged by
CNL, to compute the earnings and profits of the Company; (d) not later than sixty (60) days after the end of each Company Year, annual consolidated balance sheets and income statements for the Company prepared in accordance with GAAP; and
(e) all documentation and calculations necessary for the Company’s independent accountants to prepare the Company’s federal tax return and K-1’s on or before June 30th of each year. In addition to, and not in limitation of
the foregoing, the Managing Member shall, or in the Managing Member’s sole discretion, such other Member as the Managing Member designates shall have the responsibility to monitor and manage the Company’s debt compliance, cash management

  
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functions and annual independent audit. The Managing Member shall be responsible for determining, pursuant to and as required under Section 3.1(a) of each Operating Lease, whether any Excess
Rent (as defined in each Operating Lease) shall be deemed not to accrue or otherwise be payable as rent under any Operating Lease, which determination shall be subject to the approval of the other Members. 

5.4 Accounting Expenses. All out-of-pocket expenses payable to Persons that are retained in accordance with the terms of this
Agreement in connection with the keeping of the books and records of the Company and the preparation of audited or unaudited financial statements and federal, state and local tax and information returns required to implement the provisions of this
Agreement or required by any governmental authority with jurisdiction over the Company shall be borne by the Company as an ordinary expense of its business; provided, however, that any financial or other reporting or responsibility required of the
Company because a Member is an Affiliate of a public company shall be borne by such Member. 
 5.5 Budgets. Attached
hereto as Exhibit A is the Approved Budget for the current fiscal year. In each subsequent fiscal year, the Managing Member shall deliver to the other Members promptly upon receipt from the Facility Manager, a draft annual operations budget
for the next fiscal year for each Facility in the form attached as Exhibit D to the Management Agreement for the ensuing calendar year (the “Proposed Budgets”). The Proposed Budget shall be considered by the Members and a final
annual operations budget shall be approved based on the Proposed Budget which shall become an Approved Budget in accordance with the requirements of the Management Agreement for such Facility. If there is a delay in the finalization of a new
Approved Budget, or if the Proposed Budget is not approved as aforesaid, the Company shall require the Facility Manager to operate the Facility pursuant to the Approved Budget for the prior fiscal year for the Facility increased by the greater of
(A) three and one-half of one percent (3.5%) or (B) any increase in the Index, until the Proposed Budget is approved by the Members. The amount of the Index increase for each fiscal year shall be determined by multiplying the Approved
Budget for the previous Fiscal Year by a fraction, the numerator of which shall be (i) the Index most recently published immediately prior to the next fiscal year, minus (ii) the Index most recently published immediately prior to the
immediately preceding fiscal year, and the denominator of which shall be the Index most recently published immediately prior to the immediately preceding fiscal year. Mathematically, the Index increase calculation may be expressed as (current Index
- last year Index) ÷ last year Index. If consensus cannot be reached among the Members as to the Proposed Budget within sixty (60) days of Members’ receipt of the Proposed Budget, then the Members shall submit the Proposed Budget to
arbitration pursuant to Section 13.7, for a determination as to any items contained in the Proposed Budget which remain in dispute. Either party may initiate arbitration. Managing Member shall use commercially reasonable efforts to adhere to
the Approved Budgets, it is understood, however, that the Approved Budgets are only projections by Managing Member of estimated results and that various circumstances such as, but not limited to, the cost of labor, material, services and supplies,
casualty, operation of law, or economic and market conditions may make achievement of the Approved Budgets impracticable or not obtainable. 
 ARTICLE 6 
 CAPITAL CONTRIBUTIONS, LOANS 

AND LIABILITIES 

  
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 6.1 Initial Capital Contributions of the Members. The initial Capital Contributions
of the Members are set forth on Schedule 6.1 attached to this Agreement, made as follows: 
 (a) CNL has
contributed Eighteen Million, Nine Hundred and Fifty Nine Thousand, Nine Hundred and Ninety Eight and 41/100 Dollars ($18,959,998.41) in cash to the Company, which has been immediately used by the Company to fund a portion of the paydown of the
Existing Financing in connection with the Existing Financing Modification and other closing costs; and 
 (b)
Sunrise has contributed Eight Million, One Hundred and Twenty Five Thousand, Seven Hundred and Thirteen and 61/100 Dollars ($8,125,713.61) in cash to the Company, which has been immediately used by the Company to fund a portion of the paydown of the
Existing Financing in connection with the Existing Financing Modification and other closing costs 
 6.2 [Intentionally
Omitted]. 
 6.3 Capital Calls. Any Member may, at any time or times, require all Members upon the giving of a
Capital Call, and all Members hereby agree, to make additional Capital Contributions to the Company for the purpose of curing an event of default or a default which with the passage of time will ripen into an event of default or will give rise to
the exercise of a remedy by the Lender under the Existing Financing or any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement (other than the repayment of the principal amount of the Existing Financing or
any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement at the maturity of the Existing Financing or any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement, as the
same may be accelerated), or for the purpose of funding Non-Discretionary Items (such Capital Contributions, the “Mandatory Capital Contributions”). All additional Capital Contributions other than the Mandatory Capital Contributions
shall be a Major Decision subject to the mutual agreement of the Members in accordance with Section 3.5 hereof. Upon a Capital Call, provided such Capital Call is with respect to a Mandatory Capital Contribution or an additional Capital
Contribution agreed upon by the Members in accordance with Section 3.5, each Member shall contribute as a Capital Contribution such Member’s pro rata portion of the aggregate amount specified in the Capital Call based on such
Member’s Percentage Interest set forth on Schedule 6.1 hereto, other than payments for costs and expenses to be paid by a Member pursuant to Section 4.3(b). The Capital Calls shall be given no less than ten (10) Business Days
in advance of the date the Capital Contribution specified in such Capital Call is to be made. The Members acknowledge and agree that funds from Capital Contributions will be distributed to the Facility Owners and Facility Lessees for the purposes
set forth in this Section 6.3. 
 6.4 Reimbursements. 

(a) Except as provided in Sections 6.4(b) below, the Company shall reimburse each Sunrise Guarantor and CNL Guarantor, as
applicable, for (i) all amounts paid by a Sunrise Guarantor or CNL Guarantor in respect of a Claim made by Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a Sunrise Guarantor or CNL Guarantor in
respect of the Claim. The Company shall make such reimbursement from time to time, within fifteen (15) days after receipt of a demand from a Sunrise Guarantor or CNL Guarantor, as applicable, together with reasonable documentation
substantiating the amount of the request. The Managing Member shall notify the Members of the amount of funds required to pay the demand from the Sunrise Guarantor or 

  
 25 

 
CNL Guarantor, as applicable, and shall provide the Members with reasonable documentation substantiating the amount of the request, and each Member’s required contribution amount. The
Members shall fund the amount called for within ten (10) Business Days after notice is given. 
 (b) The
Company shall have no reimbursement obligation with respect to a Sunrise Recourse Claim or CNL Recourse Claim. 

(c) Notwithstanding the foregoing, (a) CNL shall reimburse each Sunrise Guarantor for one hundred percent
(100%) of (i) all amounts paid by a Sunrise Guarantor in respect of a CNL Recourse Claim made by Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a Sunrise Guarantor in respect of a CNL Recourse
Claim and (b) Sunrise shall reimburse each CNL Guarantor for one hundred percent (100%) of (i) all amounts paid by a CNL Guarantor in respect of a Sunrise Recourse Claim made by Lender under an Affiliate Guaranty and (ii) Third
Party Costs and Expenses incurred by a CNL Guarantor in respect of a Sunrise Recourse Claim. CNL and Sunrise shall make such reimbursement from time to time, within ten (10) Business Days after demand from the Sunrise Guarantor or CNL
Guarantor, as applicable, together with reasonable documentation substantiating the amount of the request. 
 6.5 Member
Loans for Failure to Fund Capital Contributions. If any Member shall fail to timely make a capital contribution required pursuant to Section 6.3 in the amount and within the time period specified in the Capital Call notice (such Member is
hereinafter referred to as a “Non-Contributing Member”), the Managing Member shall give written notice in accordance with the requirements of Section 13.2 of such failure to all other Members and any other Member or Members may
fund all or part of such capital contribution on behalf of such Non-Contributing Member (each such funding Member is hereinafter referred to as a “Contributing Member”). Any amounts funded by a Contributing Member on behalf of a
Non-Contributing Member shall be made directly to the Company but shall be treated as (a) a secured recourse demand loan made by the Contributing Member to the Non-Contributing Member (the “Member Loan”), bearing interest at
the lower of (i) the rate of return to which the Contributing Member is entitled pursuant to Section 8.1 at the time such Member Loan is made, plus the Member Loan Rate, and (ii) the maximum rate permitted by applicable law, followed
by (b) a capital contribution by such Non-Contributing Member to the Company. The Member Loan will be secured by a UCC security interest in the Non-Contributing Member’s Interest (which the Non-Contributing Member hereby grants) and any
transferee of the Non-Contributing Member’s Interest will take that Interest subject to the lien. The Member Loan (to the extent of unpaid principal and interest) shall be payable within thirty (30) days after written demand by the
Contributing Member and shall be repaid (c) directly by the Company on behalf of the Non-Contributing Member to the Contributing Member from Net Operating Cash Flow or Capital Proceeds otherwise distributable to the Non-Contributing Member as
further provided in Section 8.4, and (d) to the extent outstanding, upon any Transfer of any part of the Non-Contributing Member’s Interest. Any Net Operating Cash Flow or Capital Proceeds used to repay the Member Loan shall be
applied first to interest and then to principal. The Member Loan may, at the election of the Contributing Member, be evidenced by a promissory note, and the Contributing Member is hereby granted an irrevocable power of attorney, coupled with an
interest, to execute and deliver that promissory note on behalf and in the name of the Non-Contributing Member. The failure of a Contributing Member or Non-Contributing Member to execute the promissory note will not invalidate or otherwise affect
the enforceability of, or amounts owing under, any Member Loan. 
 6.6 Capital of the Company. The capital of the Company
shall be the sum of the Members’ Capital Contributions. Except as otherwise provided in this Agreement, no Member shall 

  
 26 

 
be entitled to withdraw or receive any interest on, or return of, all or any part of its Capital Contribution or to receive Company Assets in return for its Capital Contribution. 

6.7 Limited Liability of Members. No Member shall be bound by, or be personally liable for, the expenses, liabilities,
indebtedness or obligations of the Company. The liability of each Member shall be limited solely to the amount of its Capital Contribution; provided, however, after a Member has received a distribution from the Company, such Member may be
liable to the Company for the amount of the distribution but only to the extent required by this Agreement or by the Act. Nothing in this Agreement shall be construed to create liability of any Member in excess of the amount of its Capital
Contribution except for gross negligence, fraud, or willful misconduct by such Member. 
 6.8 Existing Financing.

 (a) Non-Recourse; Carve-out Guaranties The Existing Financing is secured by the Facilities and is
non-recourse to the Company and to the Members, except as otherwise expressly set forth in the documents evidencing such Existing Financing, provided that a Sunrise Guarantor and a CNL Guarantor will be jointly and severally responsible for certain
obligations as set forth in any Affiliate Guaranties, including without limitation (i) those certain Amended and Restated ERISA Guaranty Agreements, dated as of the date of the Existing Financing Modification, made by each Facility Entity, the
Company, CNLSun Two Pool One, LLC, CNL Income SL II TRS Corp., CNL Guarantor and Sunrise Guarantor in favor of Lender and (ii) those certain Amended and Restated Limited Recourse Liability Guaranties, dated as of the date of the Existing
Financing Modification, made by Sunrise Guarantor and CNL Guarantor in favor of Lender. Sunrise and CNL shall cause Sunrise Guarantor and CNL Guarantor, respectively, to the extent required by the Lender, to issue any Affiliate Guarantees, in forms
acceptable to Sunrise and CNL in their sole discretion. CNL, Sunrise and the Company and the CNL Guarantor and Sunrise Guarantor have entered into an Indemnification and Contribution Agreement on the date hereof in the form attached hereto as
Exhibit B. 
 ARTICLE 7 
 CAPITAL ACCOUNTS, PROFITS 
 AND LOSSES AND ALLOCATIONS 

7.1 Capital Accounts. 
 (a) The Capital Accounts of Sunrise and CNL established hereunder shall be initially set forth on Schedule 6.1. 
 (b) The Capital Accounts of the Members shall be set forth on Schedule 6.1. A separate Capital Account shall be maintained for each Member in accordance with the rules of Treasury Regulations
Section 1.704-1(b)(2)(iv), and this Section 7.1 shall be interpreted and applied in a manner consistent therewith. Whenever the Company would be permitted to adjust the Capital Accounts of the Members pursuant to Treasury Regulation
1.704-1(b)(2)(iv)(f) to reflect revaluations of the Company, the Company may so adjust the capital accounts of the Members. In the event that the Capital Accounts of the Members are adjusted pursuant to Treasury Regulation 1.704-1(b)(2)(iv)(f) to
reflect revaluations of any of the Company’s assets or property, (i) the Capital 

  
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Accounts of the Members shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or loss, as
computed for book purposes, with respect to such assets or property, (ii) the Member’s distributive shares of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to such assets or property
shall be determined so as to take account of the variation between the adjusted tax basis and the book value of such assets or property in the same manner as under IRC Section 704(c), and (iii) the amount of upward and/or downward
adjustments to the book value of the Company property shall be treated as income, gain, deduction and/or loss for purposes of applying the allocation provisions of this Section. In the event that Code Section 704(c) applies to any Company
property, the Capital Accounts of the Members shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain and loss, as computed for book purposes with
respect to such Company property. 
 (c) Each Member’s Capital Account shall be maintained in accordance
with the following provisions: 
 (i) Each Member’s Capital Account shall be credited with the amounts of such
Member’s Capital Contributions, such Member’s distributive share of Profits and any items in the nature of income or gain which are specially allocated to the Member pursuant to this Article 7, and the amount of any liabilities of the
Company assumed by such Member or which are secured by any property distributed by the Company to such Member; 
 (ii) Each
Member’s Capital Account shall be charged with the amounts of cash and the Carrying Value of any property distributed by the Company to such Member pursuant to any provision of this Agreement, such Member’s distributive share of Losses and
any items in the nature of expenses or losses which are specially allocated to the Member pursuant to this Article 7, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such
Member to the Company. 
 (iii) If all or a portion of a Member’s Interest is Transferred in accordance with the terms of
this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the Transferred Interest; and 
 (iv) In determining the amount of any liability for purposes of this Section 7.1(b), Section 752(c) of the Code and any other applicable provisions of the Code and Regulations shall be taken
into account. 
 This Section 7.1(b) and other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to
comply with Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. If the Managing Member determines that it is prudent to modify the manner in which the Capital Accounts, or any
charges or credits thereto (including charges or credits relating to liabilities which are secured by contributions or distributed property or which are assumed by the Company or by Members), are computed in order to comply with such Regulations,
the Managing Member may make such modification, but only if it is not likely to have a material effect on the amounts to be distributed to any Member pursuant to Section 8.1, Section 8.2 or Section 10.3 upon the dissolution of the
Company. The Managing Member also shall (c) make any adjustments that may be necessary or appropriate to maintain equality between the Capital Accounts of the Members and the amount of capital reflected on the Company’s balance

  
 28 

 
sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (d) make any appropriate modifications in the event unanticipated events might
otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b). 
 7.2 General Allocation Rules.

 After giving effect to the special allocations set forth in Section 7.3, all Profits and Losses (and to the extent
necessary, as set forth in clauses (a), (b) and (c) of this Section 7.2, items of gross income, gain, expense and loss) of the Company shall be allocated to the Members as follows: 

(a) If the Company has Profits for any Fiscal Year (determined prior to giving effect to this clause (a)), each Member
whose Partially Adjusted Capital Account is greater than its Target Capital Account shall be allocated, proportionately, items of Company expense or loss for such Fiscal Year equal to the difference between its Partially Adjusted Capital Account and
Target Capital Account. If the Company has insufficient items of expense or loss for such Fiscal Year to satisfy the previous sentence with respect to all such Members, the available items of expense or loss shall be allocated among such Members in
proportion to such differences. 
 (b) If the Company has Losses for any Fiscal Year (determined prior to giving
effect to this clause (b)), each Member whose Partially Adjusted Capital Account is less than its Target Capital Account shall be allocated, proportionately, items of Company gain or income for such Fiscal Year equal to the difference between its
Partially Adjusted Capital Account and Target Capital Account. If the Company has insufficient items of income or gain for such Fiscal Year to satisfy the previous sentence with respect to all such Members, the available items of income or gain
shall be allocated among such Members in proportion to such differences. 
 (c) Any remaining Profits or Losses
(as computed after giving effect to clauses (a) and (b) of this Section 7.2) shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and
Target Capital Accounts for the period under consideration. To the extent possible, each Member shall be allocated a pro rata share of all Company items allocated pursuant to this clause (c). No portion of such Profits, if any, shall be allocated to
a Member whose Partially Adjusted Capital Account for the period under consideration is greater than its Target Capital Account for such period; and no portion of such Losses, if any, shall be allocated to a Member whose Target Capital Account for
the period under consideration is greater than its Partially Adjusted Capital Account for such period. 
 7.3 Special
Allocations. The following special allocations shall be made in the following order and priority: 
 (a)
Company Minimum Gain Charge-back. Notwithstanding any other provision of this Article 7, if there is a net decrease in Company Minimum Gain during any Company Fiscal Year, each Member shall be specially allocated items of Company income and
gain for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). Allocations pursuant to the
previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Sections 1.704-2(f)(6) and 1.704-2(j)(2) of the
Regulations. This 

  
 29 

 
Section 7.3(a) is intended to comply with the minimum gain charge-back requirement in Section 1.704-2(f) of the Regulations and shall be interpreted consistently therewith. 

(b) Member Minimum Gain Charge-Back. Notwithstanding any other provision of this Article 7 except
Section 7.3(a), if there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Company Fiscal Year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net
decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts
required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Sections 1.704-2(i)(4) and 1.704-2(j)(2) of the Regulations. This Section 7.3(b) is intended to comply with the
minimum gain charge-back requirement in Section 1.705-2(i)(4) of the Regulations and shall be interpreted consistently therewith. 
 (c) Qualified Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in the Regulations Section 1.704-1(b)(2)(ii)(d)(4)
(adjustments for depletion), 1.704-1(b)(2)(ii)(d)(5) (other loss or deduction), or 1.704-1(b)(2)(ii)(d)(6) (reasonably expected distributions), items of Company income and gain shall be specially allocated to each such Member in any amount and
manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit of such Member as quickly as possible, provided that an allocation pursuant to this Section 7.3(c) shall be made only if and to the
extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Article 7 have been tentatively made as if this Section 7.3(c) were not in the Agreement. 

(d) Gross Income Allocation. In the event any Member has a deficit Capital Account at the end of any Company
Fiscal Year which is in excess of the sum of (i) the amount such Member is obligated to restore pursuant to any provision of this Agreement and (ii) the amount such Member is deemed to be obligated to restore pursuant to Regulations
Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this Section 7.3(d) shall be
made only if and to the extent that such Member would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article 7 have been tentatively made as if this Section 7.3(d) and Section 7.3(c)
were not in the Agreement. 
 (e) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year
shall be allocated between the Members in proportion to their respective Percentage Interests. 
 (f) Member
Nonrecourse Deductions. Any Member Nonrecourse Deductions for any Fiscal Year or other period shall be specially allocated to the Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member
Nonrecourse Deductions are attributable in accordance with Regulations Section 1.704-2(i)(1). 
 (g)
Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Sections 734(b) or 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into
account in determining Capital Accounts, 

  
 30 

 
the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis),
and such gain or loss shall be specially allocated to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations. 

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

  
 31 

 
respect to allocations pursuant to Section 7.3(f) relating to a particular Member Nonrecourse Debt to the extent the Managing Member reasonably determined that such allocations are likely to
be offset by subsequent allocations pursuant to Section 7.3(b). 
 (v) The Managing Member shall have reasonable
discretion, with respect to each Company Fiscal Year, to (A) apply the provisions of Sections 7.3(h)(ii), 7.3(h)(iii) and 7.3(h)(iv) in whatever order is likely to minimize the economic distortions that might otherwise result from the
Regulatory Allocations, and (B) divide all allocations pursuant to Sections 7.3(h)(ii), 7.3(h)(iii) and 7.3(h)(iv) among the Members in a manner that is likely to minimize such economic distortions. 

7.4 Income Tax Elections. In the event of a Transfer of all or part of a Member’s Interest (or of the interest of a partner
in a partnership which is a Member) because of death or sale, the Company shall, if requested by the transferee, make the election described in Section 754 of the Code. 
 7.5 Income Tax Allocations. 
 (a) Except as otherwise
provided in Section 7.5(c), for purposes of Sections 702 and 704 of the Code, or the corresponding sections of any future Federal internal revenue law, or any similar tax law of any state or other jurisdiction, the Company’s profits, gains
and losses for Federal income tax purposes, and each item of income, gain, loss or deduction entering into the computation thereof, shall be allocated among the Members in the same proportions as the corresponding “book” items are
allocated pursuant to this Section. 
 (b) If any portion of the Profit from a Capital Transaction allocated
among the Members pursuant to Section 7.5(a) is characterized as ordinary income under the recapture provisions of the Code or is subject to a different rate of tax under the Code, each Member’s distributive share of taxable gain from the
sale of the property that gave rise to such Profit (to the extent possible) shall include a proportionate share of the recapture income or income that is subject to a different rate of tax equal to that Member’s share of prior cumulative
depreciation deductions with respect to the property that give rise to the recapture income or the income that is subject to a different rate of tax except to the extent otherwise required by Regulations Sections 1.1245-1(e) and 1.1250-1(f).

 (c) Each item of taxable income, gain, loss or deduction attributable to (i) any property (other than
cash) contributed by a Member to the Company, and (ii) any other property of the Company the Carrying Value of which has been adjusted pursuant to clause (iii) of the definition of Carrying Value, shall be allocated among the Members in
accordance with Section 704(c) of the Code, using such method permitted by Section 704(c) of the Code and the Regulations thereunder as may be selected by the Managing Member so as to take into account the variation, at the time of
contribution or adjustment to Carrying Value, between the Adjusted Basis and the Carrying Value of such property, as required by Regulations Section 1.704-1(b)(4)(i) and Section 1.704-3. 

(d) Solely for purposes of determining a Member’s proportionate share of the “excess nonrecourse
liabilities” of the Company within the meaning of Regulations Section 1.752-3(a)(3), the Members’ interests in Company profits shall be in proportion to their respective Percentage Interests. 

  
 32 

 (e) To the extent permitted by Sections 1.704-2(h)(3) and 1.704-2(i)(6) of
the Regulations, the Members shall endeavor to treat distributions of Net Operating Cash Flow or Capital Proceeds as having been made from the proceeds of a Nonrecourse Liability or a Member Nonrecourse Debt only to the extent that such
distributions would cause or increase an Adjusted Capital Account Deficit for any Member. 
 7.6 Transfers During Fiscal
Year. In the event of the Transfer of all or any part of a Member’s Interest (in accordance with the provisions of this Agreement) at any time other than the end of a Fiscal Year, the share of Profit or Loss (in respect of the Interest so
Transferred) shall be allocated between the transferor and the transferee in the same ratio as the number of days in the Fiscal Year before and after such Transfer. The prior sentence shall not apply to Profit or Loss from Capital Transactions or to
other extraordinary nonrecurring items. Such amounts shall be allocated between the transferor and transferee based on the date of closing of the sale or on the date the gain is realized or the loss incurred, as the case may be. 

7.7 Election to be Taxed as Association. The Company shall be treated as a partnership for federal income tax purposes. No Member
or Managing Member shall cause the Company to elect to be treated other than as a partnership for federal income tax purposes in accordance with Regulations Section 301.7701-3(c), unless such election is approved in writing by all Members. If
at any time the Company has just one Member, it shall be disregarded as a separate entity for federal, state and local tax purposes. The Managing Member, in the Managing Member’s reasonable discretion, shall have the authority to elect to treat
any subsidiary of the Company that is a corporation as a “Taxable REIT Subsidiary”. 
 7.8 Assignees Treated as
Members. For all purposes of this Article 7, but for no other purpose, an Assignee shall be treated as a Member and each reference in this Article 7 to the Members shall be deemed to include Assignees. 

ARTICLE 8 

DISTRIBUTIONS OF NET OPERATING CASH FLOW 
 AND CAPITAL PROCEEDS 

  
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 8.1 Distributions of Net Operating Cash Flow. Net Operating Cash Flow distributed
shall be reasonably adjusted within 30 days after the end of the last calendar quarter of each Company Year (and to the extent necessary the Members agree to make appropriate adjustments among themselves) to ensure that the amount distributable to
each of the Members for the entire Company Year is equal to the amounts each of the Members would have received under Section 8.1 if the Net Operating Cash Flow was determined for the entire Company Year and was distributed in a single
disbursement as of the end of each Company Year (such adjustments, for example, shall take into account any increased yield a Member receives as a result of receiving distributions quarterly instead of annually). Distributions of Net Operating Cash
Flow shall be made to the Members within thirty (30) days after the close of each calendar quarter (unless (x) such distribution is not in compliance with law or (y) such distribution would result in a breach of any covenants or
undertakings provided by the Company (including covenants or undertakings provided for third party financing) or would, in the opinion of the Members, acting reasonably, be likely to do so during the following twelve (12) months), in the
following order of priority: 
 (a) For the first Company Year: 

(i) First, to CNL, until CNL has received an 13% Cumulative Return, compounded annually, on the CNL Total Capital Contribution;

 (ii) Second, to Sunrise, until Sunrise has received a 13% Return on the Sunrise Total Capital Contribution; 

(iii) Thereafter, the balance, if any, to the Members pro-rata in accordance with their respective Percentage Interests.

 (b) For the second Company Year: 
 (i) First, to CNL, until CNL has received an 12% Cumulative Return, compounded annually, on the CNL Total Capital Contribution; 
 (ii) Second, to Sunrise, until Sunrise has received a 12% Return on the Sunrise Total Capital Contribution; 
 (iii) Thereafter, the balance, if any, to the Members pro-rata in accordance with their respective Percentage Interests. 
 (c) For the third through sixth Company Years: 
 (i) First, to CNL, until CNL has
received a 11.5% Cumulative Return, compounded annually, on the CNL Total Capital Contribution; 
 (ii) Second, to Sunrise,
until Sunrise has received a 11.5% Return on the Sunrise Total Capital Contribution; 
 (iii) Thereafter, the balance, if any,
to the Members pro-rata in accordance with their then current respective Percentage Interests. 

  
 34 

 (d) Following the sixth Company Year, to the Members pro-rata in
accordance with their respective Percentage Interests. 
 8.2 Distribution of Capital Proceeds. Capital Proceeds shall be
distributed promptly after a Capital Transaction (unless (x) such distribution is not in compliance with law or (y) such distribution would result in a breach of any covenants or undertakings provided by the Company (including covenants or
undertakings provided for third party financing) or would, in the opinion of the Members, acting reasonably, be likely to do so during the following twelve (12) months) in the following order of priority: 

(a) In the event of a Capital Transaction in the first through sixth Company Years: 

(i) First, to CNL, until CNL has received an 14% Cumulative Return, compounded annually, on the CNL Total Capital Contribution after
taking into account all amounts previously distributed to CNL. 
 (ii) Second, to Sunrise, until Sunrise has received an 14%
Cumulative Return, compounded annually, on the Sunrise Total Capital Contribution after taking into account all amounts previously distributed to Sunrise. 
 (iii) Thereafter, the balance, if any, to the Members pro-rata in accordance with their then current respective Percentage Interests. 

(b) If the Capital Transaction occurs after the sixth Company Year: 

(i) First, to CNL, to a 14% Cumulative Return, compounded annually, on the CNL Total Capital Contribution attributable to years one
(1) through six (6) of the Company, after taking into account all amounts previously distributed to CNL. 
 (ii)
Second, to Sunrise, to a 14% Cumulative Return, compounded annually, on the Sunrise Total Capital Contribution attributable to years one (1) through six (6) of the Company, after taking into account all amounts previously distributed to
Sunrise. 
 (iii) Thereafter, the balance, if any, to the Members pro-rata in accordance with their then current
respective Percentage Interests. 
 8.3 Distribution Calculations. In applying the terms of Sections 8.1 and
Section 8.2, (a) references to relative Percentage Interests or relative Capital Contributions will be those in effect at the time of the distribution, (b) until a particular priority has been satisfied in full, no amounts will be
distributable under any junior priority, and (c) all amounts distributable under a particular priority will be prorated among the Members in the manner specified within that priority, and the method of proration applied to each dollar
distributable in that priority will be the same until that priority is satisfied in full. 
 8.4 Repayment of Member Loans,
Reconciliation Amounts and Other Payments. 
 (a) Notwithstanding anything to the contrary in
Section 8.1 and Section 8.2, if as a result of a Member Loan, any Member becomes a Non-Contributing Member, then any 

  
 35 

 
distributions that would otherwise be payable to the Non-Contributing Member pursuant to Section 8.1 or Section 8.2 will instead be paid to the Contributing Member or Members, first to
pay any accrued interest and then to pay the principal amount thereof or until such Member Loan (including any accrued and unpaid interest) is repaid in full and such amounts will not be deemed to have passed through the distribution waterfalls set
forth in Section 8.1 and Section 8.2. If there are two or more Contributing Members with respect to the Member Loan to a Non-Contributing Member, distributions under Section 8.1 or Section 8.2 will be made pro rata to each
Contributing Member in proportion to the relative principal amount of Member Loans (including accrued and unpaid interest) that each Contributing Member has outstanding as a percentage of total outstanding Member Loans made to the Non-Contributing
Member by all Contributing Members. Any distributions paid to a Contributing Member(s) pursuant to this Section 8.4(a) in respect of a Member Loan will, for tax allocation and all other purposes of this Agreement, be treated as if they had been
distributed to the Non-Contributing Member, not the Contributing Member or Members. 
 (b) If any amount that is
to be paid by a Member pursuant to Section 4.3(b) has not been paid by a Member, any distributions that would otherwise be payable to the Member will instead be used first to pay the payment of any reconciliation amount owed by a Member to the
Company that has not been paid pursuant to Section 4.3(b) and such amounts will not be deemed to have passed through the distribution waterfalls set forth in Section 8.1 and Section 8.2. 

8.5 Liquidation. Subject to the terms of Sections 8.2(a) and (b), in the event of the sale or other disposition of all or
substantially all of the Company Assets, the Company shall be dissolves and the proceeds of such sale or other disposition shall be distributed in liquidation as provided in Article 10, except that to the extent that the Company receives a purchase
money note or notes in exchange for all or a portion of such assets, the Company shall continue until such purchase money note or notes have been paid in full. 
 ARTICLE 9 
 DISPOSITION OF INTERESTS 

9.1 Limitations on Assignments of Interests by Members. Except as set forth in this Article 9 and other than (i) Transfers by
Sunrise or CNL to their respective Affiliates, (ii) transfers of a minority equity interest in CNL to CNL Properties Trust, Inc., a Maryland corporation, (iii) Transfers between Sunrise and CNL or (iv) pledges of, or security or
similar interests in the Interests as may be required by the Lenders to the Company, which in each case shall be subject to the terms and conditions of the Existing Financing, no Member shall have the right to Transfer all or any portion of its
Interest without the consent of the other Members in their sole discretion. Notwithstanding anything to the contrary herein, in no event may CNL Transfer all or any portion of its Interest unless all necessary consents and approvals are received
from the applicable governmental authority with respect to the licensure of the Facilities. Any transfer tax or similar tax imposed on Sunrise or CNL relating to a transaction pursuant to Article 9 will be paid or caused to be paid by that Member
(and the Member will indemnify the Company for any such transfer tax or similar tax). 
 9.2 Assignment Binding on
Company. No Transfer of all or any part of the Interest of a Member permitted to be made under this Agreement shall be binding upon the Company unless and until a duplicate original of such assignment or instrument of transfer, duly executed and

  
 36 

 
acknowledged by the assignor or transferor, has been delivered to the Company, and such instrument evidences (i) the written acceptance by the assignee of all of the terms and provisions of
this Agreement and (ii) the assignee’s representation that such assignment was made in accordance with all applicable laws and regulations. In addition, a Person to whom a Transfer may be made pursuant to this Article 9, may also be
required, in the discretion of the Members, and as a condition precedent to its becoming a transferee to make certain representations, warranties and covenants including, without limitation, representations as to its net worth, sophistication and
investment intent. 
 9.3 Substituted Members. 

(a) Members who assign all their Interests pursuant to an assignment or assignments permitted under this Agreement shall
cease to be Members of the Company except that unless and until a Substituted Member is admitted in its stead, the assigning Member shall not cease to be a Member of the Company under the Act and shall retain the rights and powers of a Member under
the Act and pursuant to this Agreement, provided that such assigning Member may, prior to the admission of a Substituted Member, assign its economic interest in its Interest, to the extent otherwise permitted under this Article 9. Any Person
who is an assignee of any of the Interest of a Member and who has satisfied the requirements of Section 9.1 and Section 9.2 shall become a Substituted Member only when (i) the Managing Member has entered such assignee as a Member on
the books and records of the Company, which the Managing Member is hereby directed to do upon satisfaction of such requirements, and (ii) such assignee shall have paid all reasonable legal fees and filing costs in connection with the
substitution as a Member. 
 (b) Any Person who is an assignee of any of the Interest of a Member but who does
not become a Substituted Member and desires to make a further assignment of any such Interest, shall be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Member desiring to make an assignment of its
Interest. 
 9.4 Acceptance of Prior Acts. Any Person who becomes a Member, by becoming a Member, accepts, ratifies and
agrees to be bound by all actions duly taken pursuant to the terms and provisions of this Agreement by the Company prior to the date it became a Member and, without limiting the generality of the foregoing, specifically ratifies and approves all
agreements and other instruments as may have been executed and delivered on behalf of the Company prior to said date and which are in force and effect on said date. 
 9.5 Permitted Transfers. 
 (a) Notwithstanding anything to
the contrary herein, subject to the terms and conditions of the Existing Financing, the following Transfers shall be deemed “Permitted Transfers” and shall not require the consent of the other Member, provided however that (a) any
Permitted Transfer by CNL shall be subject to the Sunrise Purchase Option and, subject to Section 9.5(b) below, the transfer restrictions described in Section 9.5(a)(iii) and (b) any Permitted Transfer by Sunrise shall be subject to
the CNL Put Right. 
 (i) any Member may pledge its Interest to a commercial lender in connection with a financing for the
benefit of such Member or its Affiliates (other than the Refinancing), provided, however, that the definitive loan documentation with such lender shall provide that such lender shall provide a copy to both Members hereunder of any notice with
respect to such lender’s intent to realize upon the pledged Interest after an event of default under such 

  
 37 

 
financing, and the Member which is not subject to the financing shall have the same period as provided to the defaulting Member under the applicable loan documents to remedy or cause to be
remedied the defaults specified in such notice (to the extent such defaults are capable of being remedied by such Member). All sums expended by a Member to cure the loan defaults of a defaulting Member under this Section 9.5(a)(i) shall be
treated as a Member Loan hereunder. In the event the applicable defaults are not so cured and the lender realizes upon the defaulting Member’s Interest, such realization shall be a permitted Transfer hereunder; 

(ii) Sunrise and its successors and assigns may sell all or any portion of its Interest subject to the right of first offer in favor of
CNL, on the terms set forth in Section 12.3 hereof; provided however, that with respect to the voting rights of any third party purchaser of a portion of the Sunrise Interest, such rights will be exercised by Sunrise on behalf of such purchaser
as if Sunrise retained 100% of its Interest. 
 (iii) CNL and its successors and assigns may, subject to the right of first
offer in favor of Sunrise on the terms set forth in Section 12.3 hereof, assign or sell all or a portion of its Interest to CNL Properties Trust, Inc., a Maryland corporation, provided that such entity (A) has total assets in excess of Two
Hundred Million Dollars ($200,000,000), (B) has as its advisor (pursuant to an advisory agreement as to management, acquisition, advisory and administrative services) an Affiliate of CNL Financial Group, Inc., a Florida corporation, (C) is
not known in the community as being of bad moral character, and (D) is not in control of or is controlled by any one or more persons who have been convicted of a felony involving turpitude in any state or federal court. 

(iv) CNL and its successors and assigns may, from and after the second Company Year and subject to the right of first offer in favor of
Sunrise on the terms set forth in Section 12.3 hereof, sell all or a portion of its Interest to any party that is not (A) a Competitor of Sunrise or (B) HCP, Inc., a Maryland corporation (“HCP”), or Ventas, Inc., a
Delaware corporation (“Ventas”) or their respective Affiliates and successors (such Persons referenced in clauses (A) and (B), each a “Restricted Transferee”); provided however, that with respect to the voting
rights and the CNL Put Right of any third party purchaser of a portion of the CNL Interest, such rights will be exercised by CNL on behalf of such purchaser as if CNL retained 100% of its Interest. 

(b) Indirect Transfers of CNL’s Interest shall be subject to the restrictions set forth in Section 9.1,
provided, however, that notwithstanding anything else contained in this agreement, CNL may sell its Interest without receiving the prior written consent of Sunrise in connection with a CLP Liquidity Event, provided that the transferee of CLP’s
assets in accordance with such Liquidity Event is not a Restricted Transferee; provided further however that, from and after such CLP Liquidity Event, (i) the restriction on sales of CNL’s Interest by the successor to CNL in connection
with such CLP Liquidity Event to HCP or Ventas or their respective Affiliates and successors shall continue only for a period to expire on the later of (y) two (2) years following such CLP Liquidity Event or (z) two (2) years
following the expiration of the Purchase Option Lockout Period and (ii) notwithstanding the provisions of Section 12.1, if such CLP Liquidity Event (other than a CLP Liquidity Event constituting an initial public offering of the shares of
CLP or any Affiliate thereof) occurs prior to expiration of the Purchase Option Lockout Period, Sunrise shall have the right to exercise the Sunrise Purchase Option as of the date of such CLP Liquidity Event. For purposes of clarification, the
restriction on sales of the CNL Interest to Competitors of Sunrise following a CLP Liquidity Event shall not expire. 

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

 10.1 Dissolution. 
 (a) The Company shall be dissolved and its affairs shall be wound up only upon the first to occur of the following: 
 (i) the entry of a decree of judicial dissolution under Section 18-802 of the Act; 
 (ii) the termination of the legal existence of the last remaining Member of the Company or the occurrence of any other event which terminates the continued membership of the last remaining Member of the
Company in the Company unless the business of the Company is continued in a manner permitted by this Agreement or the Act. Upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company,
to the fullest extent permitted by law, the personal representative of such member is hereby authorized and directed to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of such
Member in the Company, agree in writing (A) to continue the Company and (B) to the admission of the personal representative or its nominee or designee, as the case may be, as a Substituted Member of the Company, effective as of the
occurrence of the event that terminated the continued membership of the last remaining Member of the Company in the Company; 

(iii) a Capital Transaction effecting the sale, exchange, transfer, assignment or other disposition, directly or indirectly, of all of
the Facilities and receipt of the final payment of any installment obligation received as a result of any such Capital Transaction; 
 (iv) the written direction of all of the Members; or 
 (v)
the later of (A) the thirtieth
(30th) anniversary of the Effective Date and
(B) the date on which the term of the last Management Agreement expires, including any renewals thereof. 

(b) No Member shall have the right to (i) withdraw or resign as a Member of the Company, (ii) redeem, or
otherwise require redemption of, its Interest or any part thereof or (iii) to the fullest extent permitted by law, dissolve itself voluntarily. 
 (c) Notwithstanding any other provision of this Agreement, the Bankruptcy of any of the Members shall not cause said Member to cease to be a Member of the Company and upon the occurrence of such an event,
the business of the Company shall continue without dissolution. To the fullest extent permitted by law, the Company shall not be dissolved or terminated solely by reason of the Bankruptcy, removal, withdrawal, dissolution or admission of any Member.

 10.2 Winding Up. 

  
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 (a) In the event of the dissolution of the Company pursuant to
Section 10.1(a), the Managing Member may wind up the Company’s affairs. 
 (b) Upon dissolution of the
Company and until the filing of a certificate of cancellation of the Certificate of Formation as provided in the Act, the Managing Member or a liquidating trustee, as the case may be, may, in the name of, and for and on behalf of, the Company,
prosecute and defend suits, whether civil, criminal or administrative, gradually settle and close the Company’s business, dispose of and convey the Company’s property, discharge or make reasonable provision for the Company’s
liabilities, and distribute to the Members in accordance with Section 10.3 any remaining assets of the Company, all without affecting the liability of Members and without imposing liability on any liquidating trustee. 

(c) Upon the completion of winding up of the Company, the Managing Member or liquidating trustee, as the case may be,
shall file a certificate of cancellation of the Certificate of Formation in the Office of the Secretary of State of the State of Delaware as provided in the Act. The existence of the Company as a separate legal entity shall continue until
cancellation of the Certificate as provided in the Act. 
 10.3 Distribution of Assets. Upon the winding up of the
Company, the Company Assets shall be distributed in the following priority: 
 (a) to the satisfaction of debts
and liabilities of the Company owed to creditors (whether by payment or the making of reasonable provision for payment thereof), in order of priority as provided by law, other than debts and liabilities owed to Members, including, without
limitation, Member Loans, including to the payment of expenses of the liquidation and to the setting up of any reserves that the Managing Member or the liquidating trustee, as the case may be, shall determine are reasonably necessary for any
contingent, conditional or non-matured liabilities or obligations of the Company or the Members; 
 (b) to the
satisfaction of debts and liabilities of the Company owed to Members; and 
 (c) to the Members in accordance
with provisions of Section 8.2(a), (b), or (e) as if such distribution was a distribution of Capital Proceeds. 

ARTICLE 11 

AMENDMENTS 
 11.1 Amendments. This Agreement may not be modified, altered, supplemented or amended except pursuant to a written agreement executed and delivered by all of the Members. 

11.2 Additional Members. Notwithstanding Section 11.1, if this Agreement shall be amended as a result of adding or
substituting a Member, the amendment to this Agreement shall be signed by all of the Members and by the Person to be added or substituted and by the assigning Member, if any. 
 11.3 Documentation. In making any amendments, the Managing Member shall prepare and file for recordation such documents and certificates as shall be required to be prepared and filed. 

  
 40 

 ARTICLE 12 
 BUY-SELL; PURCHASE OPTION; RIGHT OF FIRST OFFER 
 12.1 Purchase
Option. 
 (a) From and after the expiration of the third Company Year (the period beginning on the
Effective Date and ending upon the expiration of the third Company Year referred to herein as the “Purchase Option Lockout Period”), subject to Section 9.5(b), Sunrise shall have the option to purchase, exercisable in
Sunrise’s sole discretion, one hundred percent (100%) of CNL’s Interest in the Company (such option, the “Sunrise Purchase Option”). The Sunrise Purchase Option shall be exercisable upon not less than ninety
(90) days prior written notice to CNL (the “Purchase Option Notice”) in accordance with the requirements of Section 13.2 (which notice may be exercised prior to the expiration of the Purchase Option Lockout Period),
provided, however, that the Sunrise Purchase Option shall no longer be exercisable after the sixth Company Year (the “Purchase Option Termination Date”). If Sunrise exercises the Sunrise Purchase Option, CNL will be paid a purchase
price equal to the amount necessary to return to CNL a 16% Internal Rate of Return on the CNL Total Capital Contributions, after taking into account all amounts previously distributed to CNL (the “Option Price”). The Option Price
shall be calculated by an accounting firm jointly agreed upon by the Members (the “Independent Accountant”) and the Members hereby acknowledge that they shall give preference to one of the following accounting firms as the
Independent Accountant: Ernst & Young, PricewaterhouseCoopers, KPMG, or Deloitte Touche, within three (3) Business Days of the issuance of the Purchase Option Notice, and such accountant shall notify Sunrise and CNL of such amounts in
writing upon such calculation. For purposes of calculating the Option Price, as applicable, any amounts paid to CNL by Sunrise with respect to any claim for breach of obligations, representations or warranties of Sunrise or the Company under the
Purchase Agreement in accordance with the terms thereof, whether in settlement of such claim or pursuant to a judgment issued against Sunrise or the Company in connection with such claim or otherwise, shall be credited at closing against the Option
Price. For purposes of clarity, the Sunrise Purchase Option shall apply to CNL’s Interest in the Company but not to any interest in CNL. 
 (b) The closing of the Transfer of CNL’s Interest in accordance with the Sunrise Purchase Option shall be in accordance with Section 12.4 below and shall take place not earlier than ninety
(90) days after Sunrise issues the Purchase Option Notice, unless Sunrise and CNL mutually agree to an earlier closing date (the “Purchase Option Closing Date”). At the closing, CNL shall transfer its Interest free and clear of
all Liens and withdraw as Managing Member in consideration of its receipt of the Option Price, as applicable, by wire transfer of immediately available funds. The Members shall not invoke the provisions of Section 12.2 or Section 12.3
during any period when the Sunrise Purchase Option has been invoked but closing thereunder has not yet occurred. During the period commencing upon the issuance of the Purchase Option Notice and ending on the Purchase Option Closing Date, all
decisions regarding the management and operations of the Company, whether or not such decisions are Major Decisions, shall be decided jointly between the Members. 
 12.2 Buy Sell. 
 (a) At any time from and after the
Purchase Option Termination Date, provided Sunrise has not exercised the Sunrise Purchase Option on or before such Purchase Option Termination Date, either Member (the “Offeror”) may give to the other Member (the
“Offeree”) a written notice in accordance with the requirements of Section 13.2 (a “Buy-Sell Notice”) stating the 

  
 41 

 
Offeror’s determination of the price for the assets of the Company if the Company was sold to a third party purchaser for fair market value, free and clear of all liabilities, (the
“Buy-Sell Price”), and stating that the Offeror will either (i) pay to the Offeree in exchange for all the Offeree’s Interest an amount (the “Offer Amount”) equal to the cash amount that the Offeree would
have received in respect of the Offeree’s Interest pursuant to Section 8.2, net of the Transfer Expenses, in the event of a liquidating Capital Transaction on the date of delivery of the Buy-Sell Notice for a sales price equal to the
Buy-Sell Price or (ii) sell all the Offeror’s Interest to the Offeree in exchange for an amount (the “Selling Amount”) equal to the cash amount Offeror would have received pursuant to Section 8.2, net of the Transfer
Expenses, in the event of a liquidating Capital Transaction on the date of delivery of the Buy-Sell Notice for a sales price equal to the Buy-Sell Price. The Offer Amount and Selling Amount shall be calculated by an independent accountant acting on
behalf of the Company within three (3) Business Days of the issuance of the Buy-Sell Notice, and such accountant to notify both the Offeror and Offeree of such amounts in writing upon such calculation. 

(b) The Offeree shall have a period of thirty (30) days after its receipt of the Buy-Sell Notice within which to
give the Offeror written notice in accordance with the requirements of Section 13.2 (the “Reply Notice”) whether the Offeree shall (i) sell its Interest to the Offeror for the Offer Amount or (ii) buy the
Offeror’s Interest for the Selling Amount. In the event that the Reply Notice is not so given prior to the expiration of the thirty (30) day period, the Offeree shall be deemed to have accepted the offer to sell its entire Interest to the
Offeror for the Offer Amount. Within ten (10) Business Days after the receipt or deemed receipt of the Reply Notice, the purchaser of the Interest shall deliver a ten percent (10%) cash deposit to the selling party. 

(c) Closing of the Transfer of the Offeror’s or Offeree’s Interest in accordance with the Offeree’s
election will take place within one hundred twenty (120) days after receipt or deemed receipt by the Offeror of the Reply Notice, unless the selling and the purchasing party mutually agree to an earlier closing date (the “Buy/Sell
Closing Date”). At the closing, the selling Member (the “Buy/Sell Seller”) shall transfer its Interest free and clear of all Liens in consideration of its receipt by wire transfer of the purchase price on the terms and
conditions set forth in Section 12.4 below. Should either Member default in its obligation to close when it is obligated to do so, (i) the defaulting purchasing party shall forfeit the deposit, (ii) the defaulting Member shall have no
further ability to invoke the provisions of this Section 12.1 and (iii) the non-defaulting Member (A) shall have the right to buy the defaulting Member’s Interest for a Buy-Sell Price that shall be reduced by ten percent (10%),
which right shall continue for a period of thirty (30) days following the default of the defaulting purchasing party and (B) shall be entitled to specific performance of such obligation. If the non-defaulting Member exercises the right set
forth in the foregoing clause (iii), the closing of the purchase of the defaulting Member’s Interest shall occur subject to and in accordance with the provisions of Section 12.4. 

12.3 Right of First Offer. 
 (a) Subject to the terms and conditions of Article 9 of this Agreement and notwithstanding anything to the contrary contained herein, if, at any time, (i) Sunrise intends to sell all or a portion of
its Interest pursuant to Section 9.5(a)(ii), or (ii) CNL intends to sell all or a portion of its Interest pursuant to Section 9.5(a)(iii), such Member (the “Transferor Member”) shall give a notice (“Transfer
Notice”) to the other Member (the “Non-Transferor Member”) that the Transferor Member intends to Transfer such portion of its Interest to a third party and, upon receipt of such Transfer Notice the Non-Transferor Member
shall determine a price for the assets of the Company if the Company was sold to a third party purchaser for fair market value, free and clear of all liabilities 

  
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(the “Transfer Price”). Within ten (10) Business Days of receipt of the Transfer Notice, the Non-Transferor Member shall notify the Transferor Member as to its determination
of the Transfer Price (the “Transfer Price Notice”). Upon receipt of such Notice, the Transferor Member shall either accept or reject the Transfer Price. If the Transfer Price is accepted, the Transferor Member shall so notify the
Non-Transferor Member (“Acceptance Notice”) and within three (3) Business Days of acceptance, the Independent Accountant acting on behalf of the Company shall determine the cash amount (the “ROFO Amount”) that
the Transferor Member would have received in respect of such portion of the Transferor Member’s Interest pursuant to Section 8.2, net of the Transfer Expenses, in the event of a Liquidation Capital Transaction on the date of delivery of
the Transfer Notice for a sales price equal to the Transfer Price, and shall notify the Transferor Member and Non-Transferor Member of the same. Upon delivery and acceptance of the ROFO Amount, the Non-Transferor Member shall purchase the Transferor
Members interest in accordance with the provisions of Section 12.4 of this Agreement. If the Transfer Price is rejected, the Transferor Member shall so notify the Non-Transferor Member (“Rejection Notice”) and the Transferor
Member shall be free to sell its Interest to any third party in accordance with Section 12.3(b) of this Agreement. The failure of a Transferor Member to deliver either an Acceptance Notice or a Rejection Notice within such period of time shall
be deemed to be the delivery by such Non-Transferor Member of a Rejection Notice. If the Non-Transferor Member fails to deliver a Transfer Price Notice within the time period set forth herein, the Transferor Member shall be free to sell its Interest
to any third party. 
 (b) Subject to the restrictions of Section 9.5, the Transferor Member shall at all
times be free to negotiate with any prospective third party purchasers of its Interest and, if no Acceptance Notice has been timely delivered by any Non-Transferor Member, the Transferor Member may sell all or a portion of its Interest to a bona
fide third-party purchaser (the “Third Party Purchaser”) for an amount that is at least ninety five percent (95%) of the ROFO Amount and upon other material terms no more favorable to such Third Party Purchaser than were the
material terms offered to the Non-Transferor Member, provided that (i) such purchase price is payable in immediately available funds, (ii) the Transferor Member and the Third Party Purchaser enter into a contract of sale not later than
ninety (90) days after the date the Rejection Notices were delivered or deemed delivered and (iii) the Transferor Member and the Third Party Purchaser close the Transfer at any time within one hundred twenty (120) days after the date
the Rejection Notices were delivered or deemed delivered, on the terms and conditions set forth in Section 12.4 below. In such case, the Third Party Purchaser shall become a Member hereunder; provided however, that with respect to the voting
rights of the Third Party Purchaser, if less than 100% percent of the Interest of a Member is transferred to a Third Party Purchaser, such rights will be exercised by the Transferor Member on behalf of the Third Party Purchaser as if the Transferor
Member retained 100% of its Interest. 
 12.4 CNL Put Right 

(a) CNL shall have the one-time right (the “CNL Put Right”), to require Sunrise to acquire a
portion of CNL’s Interest in the Company up to a 10% interest in the Company (the “CNL Put Interest”) within six (6) months after the Existing Financing Maturity Date, by written notice delivered by CNL to Sunrise
given at least six (6) months prior to the Existing Financing Maturity Date (the “Put Notice”). If CNL timely delivers the Put Notice, then Sunrise shall acquire the CNL Put Interest for the CNL Put Purchase Price (as
hereinafter defined) within six (6) months after the Existing Financing Maturity Date (the “Put Exercise Outside Closing Date”). For purposes hereof, the “CNL Put Purchase Price” shall be an
amount necessary to return to CNL a 13% Internal Rate of Return on that portion of the CNL Total 

  
 43 

 
Capital Contribution that bears the same relationship as the CNL Put Interest bears to CNL’s then-current Interest after taking into account all amounts previously distributed to CNL. The
CNL Put Purchase Price shall be calculated by an Independent Accountant and the Members hereby acknowledge that they shall give preference to one of the following accounting firms as the Independent Accountant: Ernst & Young,
PricewaterhouseCoopers, KPMG, or Deloitte Touche, within three (3) Business Days of the issuance of the Put Notice, and such accountant shall notify Sunrise and CNL of such amounts in writing upon such calculation. If CNL Transfers a portion of
its Interest in accordance with and subject to the terms and provisions hereof, then CNL shall also have the right to transfer all or a portion of the CNL Put Right to such transferee provided that (a) CNL notifies Sunrise at the time of the
transfer that all or a portion of the CNL Put Right has been transferred to such transferee and (b) CNL and such transferee must act together in exercising the CNL Put Right and selling the CNL Put Interest to Sunrise hereunder. For the
avoidance of doubt, in no event shall Sunrise have any obligation under this Section 12.4 to acquire more than a 10% interest in the Company. 
 (b) If Sunrise defaults in its obligation to purchase the CNL Put Interest and pay the CNL Put Purchase Price by the Put Exercise Outside Closing Date, then following the Put Exercise Outside Closing
Date, as CNL’s sole and exclusive remedies therefor, (i) notwithstanding that the Purchase Option Termination Date has not then occurred, CNL shall have the right to initiate the Buy-Sell procedure in accordance with and subject to the
terms Section 12.2 above, mutatis mutandis, and (ii) CNL, upon written notice to Sunrise, shall have the right to cause the Company and each Operating Lessee to, and upon receipt of such notice Sunrise shall cause Manager to, enter
in to an amendment to the Manager Pooling Agreement providing that there shall be no Incentive Fee payable thereunder from and after the Put Exercise Outside Closing Date. 

(c) Sunrise shall designate a closing date (the “Put Exercise Closing Date”), which must be a
Business Day not later than the Put Exercise Outside Closing Date. Sunrise shall notify CNL in writing of the Put Exercise Closing Date not less than ten (10) days prior thereto. If Sunrise does not designate the Put Exercise Closing Date
within seventy-five (75) days following the Put Notice, then the Put Exercise Closing Date shall automatically be the Put Exercise Outside Closing Date; provided, however, that if that date is not a Business Day, then the Put
Exercise Closing Date shall be the Business Day next following such date. 
 12.5 Closing. 

(a) At the closing on (i) the date of the closing of the purchase by the Non-Transferor Member or the Third Party
Purchaser, (as applicable, the “ROFO Recipient”), of the Transferor Member’s Interests which is the subject of a the right of first offer in accordance with Section 12.3 above (the “ROFO Closing Date”),
(ii) the Purchase Option Closing Date in accordance with Section 12.1 above, (iii) the Buy/Sell Closing Date in accordance with Section 12.2 above, or (iv) the Put Exercise Closing Date in accordance with Section 12.4
above (as the case may be, the “Closing Date”) the Transferor Member (on the ROFO Closing Date), CNL (on the Purchase Option Closing Date or the Put Exercise Closing Date) or Buy/Sell Seller (on the Buy/Sell Closing Date),
respectively, (as the case may be, the “Seller”), shall execute and deliver to the ROFO Recipient, Sunrise, or Buy/Sell Purchaser, respectively (as the case may be, the “Purchaser”), an assignment of the
Seller’s Interest (or with respect to the ROFO Closing Date or the Put Exercise Closing Date, such portion of such Seller’s Interest which is subject to the assignment) (which assignment shall

  
 44 

 
warrant Seller’s ownership of the Interest being sold to be free and clear of all liens and other encumbrances) and such other instruments as the Purchaser may reasonably require, to give it
good and lien free title to all of the Seller’s right, title and interest in the Company, subject to the terms of this Agreement. If the Purchaser has elected to have the Seller convey the Seller’s Interest to a designee or nominee of the
Purchaser, the Company shall thereafter continue. In such event, the Purchaser and the Company shall indemnify the Seller against claims and liabilities of the Company arising after the date of such conveyance. 

(b) On the Closing Date, the Purchaser shall, at its option, (i) obtain a full release of the Seller (or a partial
release in the event the Seller continues to be a Member after the Closing Date in connection with the sale of a partial Interest to the Third Party Purchaser) from all liability, direct or contingent, by all holders of all Company and/or Subsidiary
debts, obligations or claims against the Seller for which the Seller is or may be personally liable with respect to the period from and after the Closing Date, except for any debts, obligations or claims which are fully insured by public liability
insurer(s) reasonably acceptable to the Seller; or (ii) cause all such debts, obligations or claims to be paid in full on the Closing Date. 
 (c) In the event of a contemplated transfer to take place pursuant to Section 12.1, Section 12.2 or Section 12.3 of this Agreement, the Seller shall be entitled to receive distributions of
available cash for the period ending at 11:59 p.m. of the day immediately preceding the Closing Date. All provisions allocating profits, losses, gains, deductions and credits for tax purposes shall remain in effect through the Closing Date.

 (d) The Managing Member is hereby authorized to execute and deliver all documents, instruments and agreements
deemed necessary or desirable by the Managing Member in its reasonable discretion to consummate the sale of the applicable Interest on the terms required by this Agreement to a Third Party Purchaser. If any Member is required to execute any such
documents, instruments or agreements, such Member shall execute the same upon the request of the Managing Member so long as the same are on terms and conditions which are reasonable and customary and do not increase the liability of such Member in
such Member’s reasonable discretion. 
 (e) If a Facility or Facilities are damaged by fire or other
casualty or if any Person possessing the right of eminent domain shall give notice of an intention to take or acquire any part of a Facility or the underlying Property of such Facilities, and such notice is given between the date of election or
deemed election by the Purchaser, and the Closing Date (if any), the following shall apply: 
 (i) If the Facility or
Facilities are not substantially damaged (which shall be deemed to mean damage, the repair of which is reasonably estimated to cost no greater than the $10,000,000 with respect to any particular Facility), then the Purchaser (if any) shall be
required to complete the transaction and the insurance proceeds or the relevant part thereof shall be retained by the Company and the Seller (if any) shall not be entitled to any portion thereof and shall credit Purchaser for Seller’s pro rata
share (based on the Seller’s Percentage Interest immediately prior to the Closing Date) of any deductible. 
 (ii) If the
Facility or Facilities are substantially damaged (which shall mean a casualty which is reasonably estimated to cost more than $10,000,000 with respect to any particular Facility, or if a taking of a Facility or Facilities worth at least $10,000,000
with respect to any particular Facility shall occur, then the Purchaser shall have the option to either (a) accept the 

  
 45 

 
Facilities in an “as is” condition in which event any insurance or condemnation proceeds, settlements and awards or the relevant part thereof shall be retained by the Company and the
Seller shall not be entitled to any portion thereof and shall credit Purchaser for Seller’s pro rata share (based on the Seller’s Percentage Interest immediately prior to the Closing Date) of any deductible, or (b) cancel the
purchase. 
 (iii) From and after the determination of the Closing Date, but prior to such Closing Date, provided that the
purchase has not been canceled by the Purchaser pursuant to Section 12.4(e)(ii), the Company shall not settle any claim relating to a casualty that damages the Facilities or a taking or acquisition of the Facilities without the prior consent of
the Purchaser. 
 (iv) In the event that the purchase is canceled by the Purchaser pursuant to the above provisions, this
Agreement shall remain in effect and continue to be binding on the parties and either Member shall thereafter have the right to continue to exercise its respective rights under Section 12.1, Section 12.2 and Section 12.3 above.

 12.6 Release from Guaranties. As a condition to the buyout of a Member pursuant to the foregoing Sections 12.1 through
12.3, such Member and all of its Affiliates shall be released from the obligation to guarantee any of the obligations of the Company or any of its Subsidiaries or Affiliates under any financing. If either Member is the selling party, the other
Member shall, at its expense, secure the release from all lenders (without releasing any claim the Company may have against the applicable guarantor) of outstanding Affiliate Guaranties executed by the applicable Sunrise Guarantor or CNL Guarantor
or their respective Affiliates (other than obligations accrued prior to the transfer under any customary recourse carve-out guarantees) and, to the extent required, obtain the consent of all lenders to the buy-out of such Member (or cause the
applicable loans to be repaid at closing). 
 12.7 Upon Termination of Management Agreement. Notwithstanding the time
limitations in Section 12.1 above, if all but not less than all of the Management Agreements are terminated for any reason prior to the Purchase Option Termination Date, Sunrise and CNL shall have the right to initiate the buy-sell options set
forth in Section 12.1 prior to the Purchase Option Termination Date. 
 12.8 Enforcement. It is expressly agreed
that the remedy at law for breach of the obligations of the Members set forth in this Article XII is inadequate in view of (a) the complexities and uncertainties in measuring the actual damage to be sustained by reason of the failure of a
Member to comply fully with such obligations, and (b) the uniqueness of the Company business and the Member’s relationships. Accordingly, each of such obligations shall be, and is hereby expressly made, enforceable by a specific
performance. 
 12.9 Existing Financing. The terms and provisions of this Article XII shall be subject to the terms and
conditions of the Existing Financing. 
 ARTICLE 13 
 MISCELLANEOUS 

  
 46 

 13.1 Further Assurances. Each party to this Agreement agrees to execute, acknowledge,
deliver, file and record such further certificates, amendments, instruments and documents, and to do all such other acts and things, as may be required by law or as, in the reasonable judgment of the Managing Member, may be necessary or advisable to
carry out the intent and purpose of this Agreement so long as such acts and things do not increase the obligations or diminish the rights of any of the Members. 
 13.2 Notices. 
 (a) Any and all notices, including any
demands, consents, approvals, offers, elections and other communications required or permitted under this Agreement shall be deemed adequately given if in writing, addressed to the recipient of the notice at the addresses set forth below (or to such
other addresses as the parties may specify by due notice to the others parties) and if delivered either (a) in hand, in which case it will be deemed delivered on the date of delivery or on the date delivery was refused by the addressee,
(b) by United States mail, postage prepaid, registered or certified, with return receipt requested, in which case it will be deemed delivered on the date of delivery as established by the return receipt (or the date on which the return receipt
confirms that acceptance of delivery was refused by the addressee), (c) by Federal Express or similar expedited commercial carrier, with all freight charges prepaid, in which case it will be deemed delivered on the date of delivery as
established by the courier service confirmation (or the date on which the courier service confirms that acceptance of delivery was refused by the addressee), or (d) by facsimile transmission with a hard copy to follow by any of the other
methods above, in which case it will be deemed delivered on the day and at the time indicated in the sender’s automatic acknowledgment. If a notice is sent to a party, then copies of such notice under this Section shall also be sent by the same
delivery method to the copy recipients. Whenever under this Agreement a notice is required to be delivered on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of
required delivery shall automatically be extended to the next Business Day. All such notices shall be addressed as follows: 
  

			
	To CNL or the Managing Member:	  	 c/o CNL Income SL II Holding, LLC
 CNL Center at City Commons, Suite 1300
 450 South Orange Avenue

Orlando, Florida 32801
 Attention: Holly Greer,
Esq., SVP and General Counsel
 Telecopy No.: (407) 540-2544
 Telephone No.: (407) 540-7546
 E-mail: Holly.Greer@cnl.com

		
	 With a copy to:
	  	 Lowndes, Drosdick, Doster, Kantor & Reed
 215 North Eola Drive
 Orlando, Florida 32801

Attention: Peter E. Reinert, Esq.
 Telecopy No.:
407-843-4444
 Telephone No.: 407-418-6291
 E-mail: peter.reinert@lddkr.com

  
 47 

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

Attn: Chief Investment & Administrative Officer
 Telecopy No.: (703) 744-1601
 Telephone No.: (703) 854-0683

		
	 With a copy to:
	  	 c/o Sunrise Senior Living, Inc.
 7900 Westpark Drive, Suite T-900
 McLean, Virginia 22102

Attention: General Counsel
 Telecopy No.: (703)
854-0334
 Telephone No.: (703) 744-1601

		
	 With a copy to:
	  	 Willkie Farr & Gallagher LLP
 787 Seventh Avenue
 New York, New York 10019

Attention: Eugene A. Pinover
 Telecopy No.: (212)
728-9254
 Telephone No.: (212) 728-8254

E-mail: epinover@willkie.com

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

 13.3 Headings and Captions. All headings and captions contained in this Agreement and the table of contents hereto are
inserted for convenience only and shall not be deemed a part of this Agreement. 
 13.4 Variance of Pronouns. All
pronouns and all variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person or entity may require. 
 13.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one

  
 48 

 
Agreement. The submission of a signature page transmitted by facsimile (or similar electronic transmission facility) shall be considered as an “original” signature page for purposes of
this Agreement so long as the original signature page is thereafter transmitted by mail or by other delivery service and the original signature page is substituted for the facsimile signature page in the original and duplicate originals of this
Agreement. 
 13.6 Governing Law; Litigation, Jurisdiction and Waiver of Jury Trial. 

(a) This Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware without
regard to conflict of laws principles. 
 (b) For the purposes of any suit, action or proceeding involving this
Agreement, the parties each hereby expressly and irrevocably submits to the jurisdiction of all federal and state courts sitting in the Commonwealth of Virginia and the State of Florida which courts shall have jurisdiction over any such suit, action
or proceeding commenced by any party. The parties consent to service of process, wherever made, by certified mail return receipt requested, personal service or any other method permitted by applicable law and the rules of the applicable court. In
furtherance of such agreement, the parties agree, upon the request of any party, to discontinue (or agree to the discontinuance of) any such suit, action or proceeding pending in any other jurisdiction. 

(c) Each party hereby irrevocably waives any objection that either party may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Agreement brought in any federal or state court sitting in the Commonwealth of Virginia or the State of Florida and hereby further irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum. 
 (d) If for any
reason, the state and federal courts sitting in the Commonwealth of Virginia or the State of Florida refuse to exercise jurisdiction over the proceeding or any party, then litigation as permitted herein may be brought in any court of competent
jurisdiction in the United States of America. 
 (e) EACH PARTY HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY,
TRIAL BY JURY IN ANY ACTION BROUGHT ON, UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH, THE FACILITY, OR ANY CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING
HERETO OR TO ANY OF THE FOREGOING. 
 13.7 Arbitration. 

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

  
 49 

 
initiate the Arbitration Proceeding shall have the right to elect the Venue in its sole discretion, which shall be binding on both parties. The choice of law provisions set forth in
Section 13.6 shall apply in any such Arbitration Proceeding. Any dispute, disagreement, or controversy arising out of or relating to this Agreement for which arbitration is not expressly provided as the means of resolution may be resolved by
litigation as provided in Section 13.6 or by other lawful means. 
 (b) The party desiring arbitration
shall provide written notice in accordance with the requirements of Section 13.2 to the other party (the “Arbitration Notice”) indicating (i) the matter in controversy and (ii) the name, contact information and
professional resume of the proposed arbitrator meeting the requirements for a qualified and independent arbitrator set forth in Section 13.7(c) (“Initial Arbitrator”) to arbitrate such matter in controversy. If the party
receiving the Arbitration Notice rejects the Initial Arbitrator set forth in the Arbitration Notice it shall object by written notice in accordance with the requirements of Section 13.2 (“Objection Notice”) delivered to the
other party within seven (7) Business Days of the receipt of the Arbitration Notice. The Objection Notice shall contain the name, contact information and professional resume of a different arbitrator meeting the requirements for a qualified and
independent arbitrator set forth in Section 13.7(c) (“Secondary Arbitrator”) to arbitrate the matter in controversy set forth in the Arbitration Notice. If the party receiving the Objection Notice rejects the Secondary
Arbitrator, it shall object in writing (“Secondary Objection Notice”) to the other party within seven (7) Business Days after the receipt of the Objection Notice. If neither the Initial Arbitrator nor the Secondary Arbitrator
is accepted by the parties, the party which delivered the Arbitration Notice shall instruct the Initial Arbitrator and the Secondary Arbitrator to agree, within five (5) Business Days after receipt of the Secondary Objection Notice, upon an
arbitrator (“Appointed Arbitrator”) meeting the requirements for a qualified and independent arbitrator set forth in Section 13.7(c). If they agree upon an Appointed Arbitrator who is prepared to act as the Appointed
Arbitrator, the Initial Arbitrator and Secondary Arbitrator shall deliver written notice of the name, contact information and professional resume of the Appointed Arbitrator to each party simultaneously. The appointment of the Appointed Arbitrator
shall be a final decision, which shall not be subject to objection by either party, unless either party to this Agreement within five (5) Business Days after such selection of an Appointed Arbitrator, gives written notice in accordance with the
requirements of Section 13.2 of this Agreement to the other party, in writing, that such Appointed Arbitrator fails to meet the requirements for a qualified and independent arbitrator set forth in Section 13.7(c) and provides specific
information in such written notice as to the reasons why such failure exists. 
 (c) In the event the Initial
Arbitrator and the Secondary Arbitrator cannot agree on an Appointed Arbitrator or if such appointed Arbitrator is unwilling to act as the Appointed Arbitrator or if either party objects to the Appointed Arbitrator within five (5) Business Days
after the selection of such Appointed Arbitrator, as permitted in this Section 13.7, then either party may petition the AAA (or any successor body of similar function) to appoint an arbitrator within five (5) Business Days of such petition
using the following criteria: such arbitrator shall be (i) with respect to physical property matters, a licensed professional engineer or registered architect having at least ten (10) years experience in the design or construction of
similar senior housing facilities, (ii) with respect to financial matters, a partner in a “Big Four Accounting Firm” with at least ten (10) years experience with the type of matter in dispute, (iii) with respect to property
management issues, an individual who shall have had at least ten (10) years experience managing similar senior housing facilities in the market place for the matter in dispute and (iv) be neutral and shall have had no prior notice,
information or discussions concerning such controversy and shall not be employed by or associated with either party or any Affiliate of either of them, or any of their respective agents or affiliates at such time or for the previous ten
(10) years. If the dispute involves more than one type of 

  
 50 

 
matter, then the Appointed Arbitrator may be (v) an individual with expertise in any one of the types of matters in dispute, or (vi) a retired judge. 

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

(e) The costs and expenses of an Arbitration Proceeding including the administrative fees and costs, expert fees and the
arbitrator’s fees and costs, shall be shared equally by CNL and Sunrise, and each party shall bear its own counsel, expert, administrative fees and other professional fees and expenses with respect to such Arbitration Proceeding; provided,
however, that the Appointed Arbitrator may (but shall not be required to), in the exercise of his/her best judgment, assess one party for a part or all of the costs of the other party, including, without limitation, the costs of the Arbitration
Proceeding. 
 (f) Any arbitrator’s final decision and award shall be in writing, shall be binding on the
parties and shall be non-appealable, and counterpart copies thereof shall be delivered to both parties. A judgment or order based upon such award may be entered in any court of competent jurisdiction. All actions necessary to implement the decision
of the arbitrator shall be undertaken as soon as possible, but in no event later than three (3) Business Days after the rendering of such decision. 
 13.8 Partition. The Members hereby agree that no Member nor any successor-in-interest to any Member shall have the right to have the property of the Company partitioned, or to file a complaint or
institute any proceeding at law or in equity to have the property of the Company partitioned, and each Member, on behalf of himself, his successors, representatives, heirs and assigns, hereby waives any such right. 

13.9 Invalidity. Every provision of this Agreement is intended to be severable. The invalidity and unenforceability of any
particular provision of this Agreement in any jurisdiction shall not affect the other provisions of this Agreement, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 

13.10 Successors and Assigns. This Agreement shall be binding upon the parties hereto and their respective successors, executors,
administrators, legal representatives, heirs and legal assigns and shall inure to the benefit of the parties hereto and, except as otherwise provided in this Agreement, their respective successors, executors, administrators, legal representatives,
heirs and legal assigns. 
 13.11 Entire Agreement. This Agreement supersedes all prior agreements among the parties with
respect to the subject matter of this Agreement and contains the entire Agreement among the parties with respect to such subject matter. 
 13.12 Waivers. No waiver of any provision of this Agreement by any party hereto shall be deemed a waiver by any other party nor shall any such waiver by any party be deemed a continuing waiver of
any matter by such party. No amendment, modification, supplement, discharge or waiver of this Agreement shall require the consent of any Person not a party to this Agreement. 

  
 51 

 13.13 No Brokers. Each of the Members hereto represents and warrants to each other
that there are no brokerage commissions or finders’ fees (or any basis therefor) resulting from any action taken by such Member or any Person acting or purporting to act on their behalf upon entering into this Agreement. Each Member agrees to
defend, indemnify and hold harmless each other Member for all costs, damages or other expenses, including, without limitation, reasonable attorneys’ fees and expenses, arising out of any misrepresentation made in this Section 13.13.

 13.14 Confidentiality. Each Member agrees not to disclose or permit the disclosure of any of the terms of this
Agreement or of any other confidential, non-public or proprietary information relating to the Company Assets or business (collectively, “Confidential Information”), provided that such disclosure may be made (a) to any
Affiliate or other Person who is a partner, officer, director or employee of such Member or Affiliate or counsel to or accountants of such Member solely for their use and on a need-to-know basis, provided that such Persons are notified of the
Member’s confidentiality obligations pursuant to this Agreement, (b) with the consent of the other Members, (c) subject to the next paragraph, pursuant to a subpoena or order issued by a court, arbitrator or governmental body, agency
or official or (d) to any lender providing financing to the Company. 
 In the event that a Member shall receive a request
to disclose any Confidential Information under a subpoena or order such Member shall (e) promptly notify the other Members thereof, (f) consult with the other Members on the advisability of taking steps to resist or narrow such request and
(g) if disclosure is required or deemed advisable, cooperate with any of the other Members in any attempt it may make to obtain an order or other assurance that confidential treatment will be accorded the Confidential Information that is
disclosed. 
 13.15 No Third Party Beneficiaries. This Agreement is not intended and shall not be construed as granting
any rights, benefits or privileges to any Person not a party to this Agreement. 
 13.16 Power of Attorney. Subject to
Section 3.5, each of the undersigned does hereby constitute and appoint Managing Member as its true and lawful representative and attorney-in-fact, in its name, place, and stead to make, execute, sign, and file any amendment to the Certificate
of Formation of the Company required because of an amendment to this Agreement or in order to effectuate any change in the membership of the Company, and all such other instruments, documents, and certificates which may from time to time be required
by the laws of the United States of America, the State of Delaware, or any other state in which the Company shall determine to do business, or any political subdivision or agency thereof, to effectuate, implement, and continue the valid and
subsisting existence of the Company, or in connection with any state tax filings of the Company. The power of attorney granted hereby is coupled with an interest and shall (a) continue in full force and effect notwithstanding the subsequent
death, incapacity, dissolution, termination, or Bankruptcy of the Member granting the same or the Transfer of all or any portion of such Member’s Interest, and (b) extend to such Member’s successors, assigns, and legal
representatives. 
 13.17 Invalidity. The provisions of this Section 13.17 were negotiated in good faith by the
parties to this Agreement, and the parties agree that such provisions are reasonable and are not more restrictive than necessary to protect the legitimate interests of the parties hereto. It is the intention of the parties to this Agreement that if
any of the restrictions or covenants contained herein is held to be for a length of time that is not permitted by applicable law, or is any way construed to be too broad or to any extent invalid, such provision shall not be construed to be null,
void and of no effect, but to the extent such provision would be valid or enforceable under applicable law, a court of competent jurisdiction shall construe and interpret or reform such provision to provide for a restriction or

  
 52 

 
covenant having the maximum time period and other provisions (not greater than those contained herein) as shall be valid and enforceable under applicable law. 

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

SIGNATURE PAGES FOLLOW 

  
 53 

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

			
	MEMBERS:
	
	SUNRISE SENIOR LIVING INVESTMENTS, INC., a Virginia corporation
		
	By:	 	 /s/ Edward Burnett

		 	Name: Edward Burnett
		 	Title: Vice President
	
	CNL INCOME SL II HOLDING, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Holly Greer

		 	Name: Holly Greer
		 	Title: Senior Vice President

 [Signature Page to JV Agreement] 

 Schedule 1.1 
 Properties 
  

									
	 Name of Property
	  	 Street Address
	    	 City
	    	 ST
	    	 Zip

	Sunrise Assisted Living of Bloomfield Hills	  	Telegraph Road & Sandalwood	    	Bloomfield South	    	MI	    	48302
	Sunrise Senior Living of Broomfield	  	400 Summit Boulevard	    	Broomfield	    	CO	    	80021
	Sunrise at Johns Creek	  	11455 Medlock Bridge Road	    	Johns Creek	    	GA	    	30097
	Sunrise of McCandless	  	Duncan Avenue & Babcock Boulevard	    	McCandless	    	PA	    	15101
	Sunrise of Simi Valley	  	136 Tierra Rejada Road	    	Simi Valley	    	CA	    	93065
	Sunrise of Cary	  	1249 W. Chatham Street	    	Cary	    	NC	    	27513

 Schedule 3.5 
 Major Decisions 
 (a) Any sale, mortgage, financing or refinancing of any
material Company Assets, Facility, Facility Entity, any Subsidiary, or any interest in any material Company Asset, Facility, Facility Entity, any Subsidiary, or any lease of any Facility not permitted under the Management Agreement; however, the
Managing Member may make incidental sales, exchanges, conveyances, of personal property at the Facility which may be disposed of or replaced due to wear and tear or obsolescence or otherwise in the ordinary course of business, subject to the
provisions of Article 9 (Disposition of Interests) of this Agreement. 
 (b) Invest in or acquire any real property, or any
direct or indirect beneficial ownership interest therein by the Company or any Subsidiary. 
 (c) Make any expenditure or incur
any obligation by or for any Facility Entity which is not provided for in an Approved Budget or otherwise permitted to be incurred under the applicable Facility Documents of a Facility other than increased insurance costs, taxes, utility costs and
debt service payments; however, if actions are needed to satisfy any Emergency Requirements with respect to any Facility, the Managing Member may make such expenditures as may be necessary to alleviate such situation even if such expenditures are
not provided for, or exceed the amount provided for, in an Approved Budget or the FF&E Estimate, and the Managing Member shall promptly notify the other Members of the event giving rise to such repairs and the actions taken with respect thereto.

 (d) File any petition or consent to the filing of any petition that would subject the Company, any Facility Entity or other
Subsidiary to a Bankruptcy, or make any assignment for the benefit of creditors by the Company, any Facility Entity or other Subsidiary. 
 (e) Approve all Proposed Budgets and finalize Approved Budgets, Capital Budgets and FF&E Reserve Estimates. 
 (f) Approve operating and marketing budgets and business narrative as required to be approved by a Facility Entity pursuant to its Management Agreement; 

(g) Approve Material Contracts unless such agreements have been approved as part of the Approved Budget. 

(h) Dissolve, liquidate or otherwise terminate the Company or any Subsidiary, except pursuant to the provisions of Article 10 of
this Agreement. 
 (i) To terminate the Management Agreement if the amount of the insurance deductibles and other uninsured out
of pocket expenses of the applicable Facility Lessee in connection with the repair and/or replacement of a Facility subject to a Major Casualty (as defined in the Management Agreements) are in the aggregate higher than Five Million Dollars
($5,000,000) in accordance with Section 12.4(b) of the Management Agreements; 
 (j) To determine “fair market
value” in connection with the Facility Manager’s purchase of a Facility in accordance with Section 12.4(c) of the Management Agreements. 

  
 56 

 (k) Subject to Sections 12.04 and 12.05 of the applicable Management Agreement, to fairly
determine the use of the award in the accordance with the Management Agreement resulting from a partial condemnation of the Property or settlement in lieu thereof or the proceeds of an insurance claim resulting from a casualty to the Property, in
both instances, in excess of Five Million Dollars ($5,000,000); provided that the parties acknowledge that a portion of the proceeds for business interruption insurance would apply to management fees that would have been payable to Facility Manager
under the Manager Pooling Agreement. 
 (l) Change the status of the Company or Subsidiaries as a partnership for federal, state
or local income tax purposes. 
 (m) Enter into any resident agreement at the Facilities on a form or terms different from the
Resident Agreement Documents. 
 (n) Enter into any transaction or agreement, or modify or amend, or waive, any term of any new
or existing transaction or agreement, with an Affiliate of CNL, or take any enforcement action with respect to such a transaction or agreement. 
 (o) Renew, refinance, discharge or otherwise modify the existing loan or the Refinancing or obtain, incur, renew, refinance, discharge or otherwise modify any other financing, and entering into, amending
any loan document in connection with any such financing. 
 (p) Merge or consolidate the Company or any of its Subsidiaries with
or into another entity or forming any new Subsidiary. 
 (q) Reconstitute the Company prior to the termination thereof following
any dissolution of the Company. 
 (r) Take any other actions on behalf of the Company that are outside of the scope of
authority granted to the Managing Member pursuant to this Agreement. 
 (s) Change the purpose of the Company or the
Subsidiaries as set forth in this Agreement. 
 (t) Request any additional Capital Contributions (other than Mandatory Capital
Contributions). 
 (u) With respect to any redevelopment, renovation or capital improvement of the Facility, including with
respect to a casualty or condemnation, (a) approve the plans and specifications and material modifications thereto, (b) select the contractors and consultants, (c) approve the form and substance of the contracts with such contractors
and consultants and (d) approve of any modification of, or change order under, any such contracts. 
 (v) Institute, settle
or make any other material decision with respect to any lawsuit, claim, counterclaim or other legal proceeding by or against the Company, any Facility or any Subsidiary, including, without limitation, confessing a judgment against the Company or any
Subsidiary, accepting the settlement, compromise or payment of any claim asserted against the Company or any Subsidiary or any of their respective property and assets, or asserted by the Company or any Subsidiary in respect of the foregoing.

 (w) Change the name of the Company or any Subsidiary or otherwise modify the Organizational
Documents of any Subsidiary. 
 (x) Issue any guaranties or indemnities by the Company or any Subsidiary of obligations of any
Person whether or not in connection with the operation, improvement, management and maintenance of the Facilities. 
 (y) Settle
any dispute with respect to tax certiorari proceedings with respect to a Facility. 
 (z) Make any decisions with respect to
legal or tax matters which matters could have a material adverse effect upon the Company, any of its Subsidiaries, the Facilities or Sunrise, including, without limitation, any change to any allocation of profit and loss. 

(aa) Exchange or subdivide, or grant any option with respect to, all or any portion of the Facilities, and acquire any option with
respect to the purchase of any real property or granting or relocating any easements benefiting the Facilities, boundary line adjustments, road rights-of-way and other similar dispositions of non-leasehold interests in the Facilities. 

(bb) Set a level of reserves to be maintained by the Company or any Subsidiary. 

(cc) Select an accounting firm other than the so called “big four” accounting firms as the Company’s independent certified
public accountants; removing or replacing the Company’s independent certified public accountants unless such removed firm is replaced by any other of the so called “big four” accounting firms; make any accounting decisions for the
Company or any subsidiary in contradiction of the advice provided by the Company’s approved independent certified public accountants, and approving any financial statements of the Company within agreed time periods. 

(dd) Reduce the insurance and fidelity bond coverages carried by the Company or any Subsidiary with respect to the Company or any
Subsidiary and their respective assets, including, without limitation, the Facilities, below the greater of (x) the minimum coverages required by any loan documents and (y) the coverages in effect as of the date hereof, and
(ii) increasing the deductible with respect to any insurance coverages to more than a specified threshold amount. At any time that CNL intends to increase the insurance and/or fidelity bond coverages, Sunrise may require replacement insurance
and fidelity bond coverages to the extent that (a) such replacement insurance and fidelity bond coverages are available from an insurance company satisfactory to CNL and any lender at a lower premium than the premium for the insurance or
fidelity bond coverages in effect as of the date that CNL intends to increase such coverages, (b) the deductible with respect to any such replacement coverages shall not exceed the deductible for the coverages that CNL intends to obtain and
(c) the extent of the coverages provided by such replacement shall be equal to no less than the greater of (1) the coverages required by loan documents, and (2) the coverages in effect as of the date that CNL intends to increase such
coverages. 
 (ee) Select any third-party consultants, including, without limitation, environmental consultants, attorneys or
other professionals, to be employed or commissioned by the Company or any Subsidiary or on behalf of the Company or any Subsidiary, and the termination of any such third party, in each case to the extent related to any redevelopment, renovation or
capital improvement of the Facilities. 

 (ff) Make cash or other property distributions to the Members (other than as expressly
required or permitted under the terms of this Agreement and/or pursuant to an Approved Budget). 
 (gg) Other than with respect
to the service agreements in effect as of the date hereof, cause the Company or any Subsidiary to enter into any service agreements, or assign, cancel, terminate, extend, or modify the same, unless such service agreement (A) either (x) has
a term of one (1) year or less, or (y) is cancelable on not more than thirty (30) days’ notice without penalty and (B) is not in excess of the amount budgeted therefore. 

(hh) Make any decision with respect to any environmental matters affecting the Facilities. 

(ii) Make or agree to any changes to the zoning of the Facilities; and approve the terms and provisions of any restrictive covenants or
easement agreements affecting the Facilities or any portion thereof. 
 (jj) Approve the admission to the Company or any
Subsidiary of a successor or an additional member unless otherwise permitted to be admitted pursuant to this Agreement. 
 (kk)
Make any change or modification to, or waive any provision of, the Operating Leases. 
 (ll) In the event of a termination of
the Facility Manager in accordance with the Management Agreements, hire a new manager that is not an Affiliate of Sunrise. 

 SCHEDULE 6.1 
 Percentage Interests of the Members 
  

									
	Member	  	Percentage
Interest	 	 	Initial Capital Contribution($)	 
			
	 CNL Income Senior Holding, LLC
	  	 	67.8778	% 	 	$	35,224,832.57	  
			
	 Sunrise Senior Living Investments, Inc.
	  	 	32.1222	% 	 	$	16,669,665.81	  

 Exhibit A 
 Approved Budget 
 Exhibit B 

Indemnification and Contribution AgreementTransfer Agreement

 Exhibit 10.3 
 TRANSFER AGREEMENT 
 by and among 

MASTER METSUN TWO, LP 
 a Delaware limited partnership, 
 SUNRISE SENIOR LIVING INVESTMENTS, INC.,

 a Virginia corporation, 
 and 
 CNL INCOME PARTNERS, LP, 

a Delaware limited partnership 
 and 
 CNLSUN PARTNERS II, LLC, 

a Delaware limited liability company 
 July 8, 2011 

 TABLE OF CONTENTS 

 

							
	 Article I.           INTERPRETATION
	  	 	2	  
	 Section 1.01
	  	 Defined Terms
	  	 	2	  
	 Section 1.02
	  	 Additional Defined Terms
	  	 	6	  
	 Section 1.03
	  	 Exhibits
	  	 	8	  
		
	 Article II.          AGREEMENT TO TRANSFER TRANSFEROR’S
INTEREST
	  	 	8	  
	 Section 2.01
	  	 Transfer of Transferor’s Interest
	  	 	8	  
	 Section 2.02
	  	 Owned Assets
	  	 	8	  
	 Section 2.03
	  	 Operating Cash
	  	 	10	  
	 Section 2.04
	  	 Down Payment
	  	 	10	  
		
	 Article III.        DUE DILIGENCE
	  	 	11	  
	 Section 3.01
	  	 Investigation of Facilities
	  	 	11	  
	 Section 3.02
	  	 Title
	  	 	12	  
	 Section 3.03
	  	 Satisfaction of Conditions Precedent
	  	 	13	  
	 Section 3.04
	  	 Expiration of Due Diligence Period
	  	 	13	  
		
	 Article IV.        REPRESENTATIONS AND WARRANTIES OF NEW
INVESTOR
	  	 	13	  
	 Section 4.01
	  	 Organization, Good Standing and Entity Authority
	  	 	14	  
	 Section 4.02
	  	 Authorization and Binding Effect of Documents
	  	 	14	  
	 Section 4.03
	  	 ERISA
	  	 	14	  
	 Section 4.04
	  	 Absence of Conflicts
	  	 	14	  
	 Section 4.05
	  	 Consents
	  	 	15	  
	 Section 4.06
	  	 Broker’s or Finder’s Fees
	  	 	15	  
	 Section 4.07
	  	 No Judgments
	  	 	15	  
	 Section 4.08
	  	 No Insolvency
	  	 	15	  
	 Section 4.09
	  	 Specially Designated National or Blocked Person
	  	 	15	  
	 Section 4.10
	  	 New Investor Financials
	  	 	15	  
		
	 Article V.         REPRESENTATIONS AND WARRANTIES OF
TRANSFEREE
	  	 	16	  
	 Section 5.01
	  	 Organization, Good Standing and Entity Authority
	  	 	16	  
	 Section 5.02
	  	 Authorization and Binding Effect of Documents.
	  	 	16	  
	 Section 5.03
	  	 ERISA
	  	 	16	  
	 Section 5.04
	  	 Absence of Conflicts
	  	 	17	  
	 Section 5.05
	  	 Consents
	  	 	17	  
	 Section 5.06
	  	 Broker’s or Finder’s Fees
	  	 	17	  
	 Section 5.07
	  	 No Judgments
	  	 	17	  
	 Section 5.08
	  	 No Insolvency
	  	 	17	  
	 Section 5.09
	  	 Specially Designated National or Blocked Person
	  	 	18	  
		
	 Article VI.        REPRESENTATIONS AND WARRANTIES REGARDING
TRANSFEROR
	  	 	18	  
	 Section 6.01
	  	 Organization and Good Standing and Entity Authorization
	  	 	18	  
	 Section 6.02
	  	 Authorization and Binding Effect of Documents
	  	 	18	  
	 Section 6.03
	  	 Absence of Conflicts
	  	 	19	  

  
 I 

							
	 Section 6.04
	  	 Consents and Approvals
	  	 	19	  
	 Section 6.05
	  	 Broker’s or Finder’s Fees
	  	 	19	  
	 Section 6.06
	  	 Ownership of Transferor’s Interest
	  	 	19	  
	 Section 6.07
	  	 ERISA
	  	 	19	  
	 Section 6.08
	  	 No Judgments
	  	 	20	  
	 Section 6.09
	  	 No Insolvency
	  	 	20	  
	 Section 6.10
	  	 FIRPTA
	  	 	20	  
	 Section 6.11
	  	 Specially Designated National or Blocked Person
	  	 	20	  
		
	 Article VII.      REPRESENTATIONS AND WARRANTIES OF SSLII
	  	 	20	  
	 Section 7.01
	  	 Organization, Good Standing, Entity Authority and Qualification
	  	 	20	  
	 Section 7.02
	  	 Authorization and Binding Effect of Documents
	  	 	21	  
	 Section 7.03
	  	 Absence of Conflicts
	  	 	21	  
	 Section 7.04
	  	 Consents
	  	 	21	  
	 Section 7.05
	  	 Broker’s or Finder’s Fees
	  	 	21	  
	 Section 7.06
	  	 ERISA
	  	 	22	  
	 Section 7.07
	  	 No Judgments
	  	 	22	  
	 Section 7.08
	  	 No Governmental Approvals
	  	 	22	  
	 Section 7.09
	  	 No Insolvency
	  	 	22	  
	 Section 7.10
	  	 Ownership and Control of Transferee
	  	 	23	  
		
	 Article VIII.     BUSINESS REPRESENTATIONS
	  	 	23	  
	 Section 8.01
	  	 Financial Statements; No Undisclosed Liabilities; Absence of Certain Changes
	  	 	23	  
	 Section 8.02
	  	 Books and Records; Internal Controls
	  	 	24	  
	 Section 8.03
	  	 Obligations
	  	 	24	  
	 Section 8.04
	  	 Medicare; Medicaid
	  	 	25	  
	 Section 8.05
	  	 No Possessory Rights
	  	 	25	  
	 Section 8.06
	  	 Employees
	  	 	25	  
	 Section 8.07
	  	 Licenses
	  	 	25	  
	 Section 8.08
	  	 Litigation
	  	 	25	  
	 Section 8.09
	  	 Environmental Matters
	  	 	26	  
	 Section 8.10
	  	 Intentionally Omitted
	  	 	26	  
	 Section 8.11
	  	 Compliance with Laws
	  	 	26	  
	 Section 8.12
	  	 Residence Agreements
	  	 	26	  
	 Section 8.13
	  	 Taxes
	  	 	26	  
	 Section 8.14
	  	 Personal Property
	  	 	27	  
	 Section 8.15
	  	 Title
	  	 	27	  
	 Section 8.16
	  	 Intentionally Omitted
	  	 	27	  
	 Section 8.17
	  	 Contracts
	  	 	27	  
	 Section 8.18
	  	 Insurance
	  	 	27	  
	 Section 8.19
	  	 Condemnation
	  	 	28	  
	 Section 8.20
	  	 Purchase Rights
	  	 	28	  
	 Section 8.21
	  	 Compliance with Permitted Exceptions
	  	 	28	  
	 Section 8.22
	  	 Utilities
	  	 	28	  
	 Section 8.23
	  	 Existing Owner Financing Documents
	  	 	28	  

  
 II 

							
		
	 Article IX.        COVENANTS
	  	 	28	  
	 Section 9.01
	  	 Publicity
	  	 	28	  
	 Section 9.02
	  	 Commercially Reasonable Efforts
	  	 	29	  
	 Section 9.03
	  	 No Recordation
	  	 	29	  
	 Section 9.04
	  	 Licenses
	  	 	29	  
	 Section 9.05
	  	 Casualty
	  	 	29	  
	 Section 9.06
	  	 Condemnation
	  	 	30	  
	 Section 9.07
	  	 Operation of Business
	  	 	30	  
	 Section 9.08
	  	 MetLife Consent
	  	 	30	  
		
	 Article X.         CONDITIONS PRECEDENT TO THE OBLIGATION OF NEW
INVESTOR, SSLII AND TRANSFEROR TO CLOSE
	  	 	30	  
	 Section 10.01
	  	 Conditions to New Investor’s Obligation to Close
	  	 	30	  
	 Section 10.02
	  	 Conditions to Transferor’s Obligation to Close
	  	 	31	  
	 Section 10.03
	  	 Conditions to SSLII’s and Transferee’s Obligation to Close
	  	 	31	  
		
	 Article XI.        CLOSING
	  	 	32	  
	 Section 11.01
	  	 Time and Place
	  	 	32	  
	 Section 11.02
	  	 Delivery of Documents at Closing
	  	 	32	  
	 Section 11.03
	  	 Closing Costs
	  	 	35	  
		
	 Article XII.      INDEMNITY; DEFAULT; DAMAGES
	  	 	35	  
	 Section 12.01
	  	 Survival
	  	 	35	  
	 Section 12.02
	  	 New Investor’s Remedies for Transferor’s Defaults
	  	 	35	  
	 Section 12.03
	  	 New Investor’s Remedies for SSLII’s or Transferee’s Defaults
	  	 	36	  
	 Section 12.04
	  	 Transferor’s, SSLII’s and Transferee’s Remedies for New Investor’s Defaults
	  	 	36	  
	 Section 12.05
	  	 Limitation on Liability for Business Representations
	  	 	37	  
	 Section 12.06
	  	 Transferor not Liable for Representations of Other Parties
	  	 	37	  
	 Section 12.07
	  	 Indemnification by New Investor
	  	 	37	  
	 Section 12.08
	  	 Intentionally Omitted
	  	 	37	  
	 Section 12.09
	  	 Indemnification by SSLII
	  	 	37	  
	 Section 12.10
	  	 Indemnification by Transferee and SSLII
	  	 	37	  
	 Section 12.11
	  	 Administration of Indemnification
	  	 	38	  
	 Section 12.12
	  	 Exclusivity
	  	 	38	  
		
	 Article XIII.     DOWN PAYMENT AND ESCROW
	  	 	39	  
	 Section 13.01
	  	 Investment of Down Payment
	  	 	39	  
	 Section 13.02
	  	 Disbursement of Down Payment
	  	 	39	  
	 Section 13.03
	  	 Disputes
	  	 	41	  
	 Section 13.04
	  	 Compensation
	  	 	41	  
	 Section 13.05
	  	 Liability of Escrow Agent
	  	 	41	  
		
	 Article XIV.    MISCELLANEOUS
	  	 	41	  
	 Section 14.01
	  	 Further Actions
	  	 	41	  
	 Section 14.02
	  	 Consents under Existing Venture Agreement
	  	 	42	  
	 Section 14.03
	  	 Notices
	  	 	42	  

  
 III

							
	 Section 14.04
	  	 Entire Agreement
	  	 	43	  
	 Section 14.05
	  	 Not Construed Against Drafter
	  	 	43	  
	 Section 14.06
	  	 Binding Effect; Benefits
	  	 	43	  
	 Section 14.07
	  	 Assignment
	  	 	43	  
	 Section 14.08
	  	 Governing Law
	  	 	44	  
	 Section 14.09
	  	 Amendments and Waivers
	  	 	44	  
	 Section 14.10
	  	 Severability
	  	 	44	  
	 Section 14.11
	  	 Headings
	  	 	44	  
	 Section 14.12
	  	 Counterparts
	  	 	44	  
	 Section 14.13
	  	 References
	  	 	44	  
	 Section 14.14
	  	 Exhibits
	  	 	44	  
	 Section 14.15
	  	 Attorneys’ Fees
	  	 	44	  
	 Section 14.16
	  	 Waiver of Jury Trial
	  	 	45	  
	 Section 14.17
	  	 Facsimile and PDF Signatures
	  	 	45	  

 EXHIBITS 
  

	A	Facilities; Facility Owners 

  

	B.	Form of Assignment and Assumption of Interest Agreement 

  

	C.	Disclosure Statement 

  

	D.	Seller’s Non-Imputation Affidavit 

  

	E.	Rent Roll 

  

	F.	Non-Foreign Status Affidavit 

  

	G.	Existing Loan Modification Term Sheet 

  
 IV 

 TRANSFER AGREEMENT 

(Transfer of Interests in MetSun Two Pool One, LLC) 
 THIS TRANSFER AGREEMENT (this “Agreement”) is dated as of the 8th day of July, 2011, by and among MASTER METSUN TWO, LP, a Delaware limited partnership (“Transferor”),
CNLSUN PARTNERS II, LLC, a Delaware limited liability company (“Transferee”), SUNRISE SENIOR LIVING INVESTMENTS, INC., a Virginia corporation (“SSLII”) and CNL INCOME PARTNERS, LP, a Delaware limited partnership
(“New Investor”). Certain capitalized terms used herein are defined in Section 1.01. 

RECITALS: 
 A. Transferor is the sole member of MetSun Two Pool One, LLC (“Pool One LLC”). Transferor’s interest in Pool One LLC is referred to herein as “Transferor’s
Interest.” 
 B. Transferor is owned by SSLII, Master Metsun Two GP, LLC (“Sunrise GP”) and
Metropolitan Connecticut Properties Ventures, LLC (“Metlife”). Transferor is governed by that certain Second Amended and Restated Limited Partnership Agreement, dated as of December 7, 2007 (as amended, the “Existing
Venture Agreement”). 
 C. Pool One LLC is governed by that certain Amended and Restated Limited Liability Company
Agreement of MetSun Two Pool One, LLC, dated as of February 6, 2008 (the “Pool One LLC Agreement”). 
 D.
Pool One LLC owns, indirectly, the fee simple interest in each of the six (6) senior living facilities described in Exhibit A (the “Facilities”) 

E. Pool One LLC owns 100% of the membership interests in MetSun Two Pool One GP, LLC, a Delaware limited liability company (the
“Pool One GP”). Pool One LLC’s interest in Pool One GP, LLC is referred to herein as the “GP Interest”). 
 F. Pool One LLC owns (i) 100% membership interests in (a) Metsun Two Bloomfield South MI Senior Living, LLC, (b) Sunrise Johns Creek GA Senior Living, LLC, (c) Metsun Two Broomfield CO
Senior Living, LLC and (d) Sunrise Wake County NC Senior Living, LLC (collectively, the “LLC Facility Owners”) and (ii) 99% limited partnership interests in (a) Metsun Two McCandless PA Senior Living LP and
(b) Metsun Two Simi Valley CA Senior Living LP (collectively the “LP Facility Owners” and collectively with the LLC Facility Owners, the “Facility Owners”). Pool One LLC’s interest in the Facility Owners
is referred to as the “Pool One Facility Owner Interests”). 
 G. Pool One GP owns 1% general partnership
interests in the LP Facility Owners. Pool One GP’s interest in the LP Facility Owners is referred to herein as the “GP Facility Owner Interests”) 
 H. Each Facility is owned by the Facility Owner listed across from such Facility’s name on Exhibit A. 

  
 1 

 I. Pursuant to a separate management agreement and related documents for each Facility, each
of the Facilities is managed by Sunrise Senior Living Management, Inc., an Affiliate of SSLII (“Manager”). 

J. Transferee is owned by SSLII. 
 K. At Closing, Transferor intends to assign Transferor’s Interest to Transferee and Transferee has agreed to accept such assignment pursuant to the terms and conditions set forth herein. 

Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows: 
 Article I. 
 INTERPRETATION 
 Section 1.01 Defined Terms. As used herein, the
following terms shall have the meanings indicated: 
 Affiliate: With respect to any specified Person that is not an
individual, another Person which, directly or indirectly, controls, is controlled by, or is under common control with, the specified Person. 
 Assignment and Assumption of Interest Agreement: Assignment and Assumption Agreement substantially in the form of Exhibit B. 

Business Day: Any day, other than a Saturday, a Sunday or a day on which banks in New York City are required or authorized to
close. 
 Charter Documents: (i) with respect to any Person which is a corporation, the certificate of incorporation
an bylaws of such Person, (ii) with respect to any Person which is a limited liability company, the certificate of formation and operating or limited liability company agreement of such Person, and (iii) with respect to any Person which is
a limited partnership, the certificate of limited partnership and partnership agreement of such Person. 
 Code: The
United States Internal Revenue Code of 1986, as amended. 
 Contract Date: The date of this Agreement, set forth in the
introductory paragraph. 
 Disclosure Statement: The Disclosure Statement prepared by SSLII attached hereto as Exhibit
C. 
 Documents: This Agreement and all Exhibits hereto, and each other agreement, certificate or instrument
delivered pursuant to this Agreement. 
 Down Payment: The sum of One Million, Sixty Eight Thousand Dollars
($1,068,000.00). 

  
 2 

 Due Diligence Period: A period ending at 5:00pm EST on July 6, 2011, as the same
may be extended by the mutual written consent of the parties hereto. 
 Environmental Claims: All claims for
reimbursement, remediation, abatement, removal, clean up, contribution, personal injury, property damage, damage to natural resources or violations of Environmental Laws, made by any Governmental Entity or other Person arising from or in connection
with the (i) spill, leak, emission, discharge or release of any Hazardous Materials over, on, in, under or from the Real Property, or (ii) violation of any Environmental Laws with respect to the Real Property. 

Environmental Laws: Any federal, state or local law, statute, rule, regulation, order, ordinance, decree, injunction, judgment,
governmental restriction or any other requirement of law (including common law) regulating Hazardous Materials or relating to the protection of human health and safety from Hazardous Materials or relating to the protection of natural resources or
the environment and applicable to the Owned Assets. 
 Environmental Liabilities: All Liabilities under any Environmental
Laws arising from or in connection with the Real Property, including, without limitation, any obligations to manage, control, contain, remove, remedy, respond to, clean up or abate any spill, leak, emission, discharge or release of any Hazardous
Materials, pollution, contamination or radiation into any water, soil, sediment, air or other environmental media. 

ERISA: The Employee Retirement Income Security Act of 1974, as amended. 

Escrow Agent: First American Title Insurance Company, National Commercial Services Office in Orlando, Florida. 

Existing Owner Financing: The existing mortgage financing obtained by the Facility Owners with respect to the Facilities.

 Existing Owner Financing Modification: The modification of the Existing Mortgage Financing as contemplated under the
Framework Agreement. 
 Framework Agreement: That certain Framework Agreement dated as of the date hereof among
Transferee, SSLII, New Investor and Manager. 
 GAAP: United States generally accepted accounting principles,
consistently applied. 
 Governmental Entity: Any governmental authority, agency, commission, board or public authority.

 Hazardous Materials: Any material that: (i) is or contains asbestos, urea formaldehyde insulation,
polychlorinated biphenyls, petroleum or petroleum products, radon gas, or microbiological contamination, (ii) the presence of which in the environment requires remediation or abatement pursuant to any Environmental Law, or is defined, listed or
identified pursuant to any Environmental Law as a “hazardous waste,” “hazardous substance,” “toxic substance” or words of similar import, or (iii) is regulated under any Environmental Law;

  
 3 

 
provided, however, that Hazardous Material shall not include (a) cleaning material, pre-packaged supplies, and petroleum products customarily used in the operation and
maintenance of comparable properties, (b) cleaning materials, personal grooming items, and other items sold in pre-packaged containers for consumer use and used by tenants and residents in the Facilities, (c) any pharmaceuticals, vaccines
or medical products or devices, or medical waste or biological waste, including those materials defined as “medical waste” or “biological waste” under Environmental Laws, and (d) petroleum products used in the operation and
maintenance of motor vehicles from time to time located on the Facilities’ parking areas and equipment, so long as, to the extent required, all applicable Licenses for the use of any of the foregoing have been obtained and are in full force and
effect and so long as all the foregoing are used, stored, handled, transported and disposed of, and otherwise managed in quantities and types appropriate for such activities and in compliance with all Environmental Laws. 

Healthcare Permits: All licenses, permits, certifications or approvals issued by Governmental Entities necessary for Facility
Owners and Manager to provide healthcare and other assisted living services to Residents as are provided or offered by Facility Owners or Manager as of the Contract Date. 
 Liabilities: Liabilities, obligations, commitments or responsibilities of any nature whatsoever, whether direct or indirect, matured or unmatured, fixed or unfixed, known or unknown, accrued,
asserted or unasserted, choate or inchoate, liquidated or unliquidated, secured or unsecured, absolute, contingent or otherwise, including any direct or indirect indebtedness, guaranty, endorsement, claim, Loss, Taxes, damage, deficiency, cost or
expense, but excluding, with respect to the relationships among the parties to this Agreement created hereunder, consequential damages. 
 Licenses: All certificates, licenses, and permits issued by Governmental Entities in connection with the ownership, leasing, use, occupancy, operation, and maintenance of the Facilities, including
the Healthcare Permits. 
 Lien: Any mortgage, deed of trust, pledge, hypothecation, title defect, right of first
refusal, security or other adverse interest, voting trust agreement, community property interest, encumbrance, claim, option, lien, lease or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, affecting any
assets or property, including any agreement to give or grant any of the foregoing, any conditional sale or other title retention agreement, and the filing of or agreement to give any financing statement with respect to any assets or property under
the Uniform Commercial Code or comparable law of any jurisdiction. 
 Loss: With respect to any Person, any and all
costs, obligations, liabilities, demands, claims, settlement payments, awards, judgments, fines, penalties, damages, and reasonable out-of-pocket expenses, including court costs and reasonable attorneys’ fees, whether or not arising out of a
third party claim, but excluding consequential damages. 
 Material Adverse Effect: Any change, event, development or
effect that individually or in the aggregate has a material adverse effect on (a) the assets, business, operations, capitalization, financial condition (including Liabilities) or results of operations of

  
 4 

 
Pool One LLC, the Facilities, the Facility Owners or the Real Property in the aggregate or (b) the ability of the parties to consummate the transactions contemplated by this Agreement.

 Medicaid/Medicare Contracts: Any contracts with any Governmental Entity or other Person, which are necessary for the
Facility Owners or Manager to be reimbursed, paid or otherwise compensated for the care of elderly, disabled or low income individuals at the Facilities, pursuant to Title XVIII or Title XIX of the Social Security Act, Title 42 United States Code,
Chapter 7, as amended from time to time, or any similar state law governing the care of elderly, disabled or low income individuals. For purposes of this definition, the term ‘care’ includes any acute health care, long term care,
preventive care or other type of health care, or any goods or services provided in connection with the provision of such care. 

Permitted Exceptions: (i) The Lien of real estate taxes and assessments and other charges by Governmental Entities that are
not yet delinquent, (ii) the rights of Residents under the Residence Agreements, (iii) such matters as are shown on the Pro Forma Title Policies, (iv) the lien of any equipment lease or financing or purchase money Lien, in each case
incurred in the ordinary course of business consistent with past practice, (v) Liens set out in Section 1.01 of the Disclosure Statement and (vi) such other matters as are approved by New Investor in writing (such approval to be
deemed given upon completion of the Closing after written disclosure to New Investor of such other matters) or that are permitted pursuant to the terms of this Agreement. 
 Person: Any individual, partnership, corporation, limited liability company, trust or other legal entity. 
 Pro-Forma Title Policies: The Pro-Forma Title Policies prepared and delivered by the Escrow Agent to Transferee and New Investor on or before the expiration of the Due Diligence Period, with
respect to the issuance by the Escrow Agent of an owner’s policy of title insurance insuring each Facility Owner’s title to the Real Property, effective as of the acquisition by Transferee of the ownership of Transferor’s Interest as
provided herein. 
 Real Property: The Land and all buildings, structures, fixtures and other improvements located
thereon, as more fully described in Exhibit A, including all permits, easements, Licenses, rights-of-way, rights and related appurtenances. 
 Resident: Each individual resident at the Facilities in his/her capacity as such. 
 Resident Deposits: All deposits or advances of any kind or nature from any Resident. 
 Resident Pre-paid Rent: All rental amounts paid in advance of the date when such payment is due by any Resident. 
 Specially Designated National or Blocked Person: (i) A person or entity designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control from time to time as a
“specially designated national or blocked person” or similar status, (ii) a person or entity described in Section 1 of U.S. Executive Order 13224, issued on September 23, 2001 (the “Executive Order”),
or (iii) a person or entity otherwise identified by Governmental Entity or 

  
 5 

 
legal authority as a person with whom a United States Person is prohibited from transacting business. As of the date hereof, a list of such designations and the text of the Executive Order are
published under the internet website address www.ustreas.gov/offices/enforcement/ofac. 
 SSLI: Sunrise Senior Living,
Inc., a Delaware corporation, which is the sole owner of SSLII. 
 Taxes: All federal, state, local and foreign taxes
including, without limitation, income, gains, transfer, unemployment, withholding, payroll, social security, real property, personal property, excise, sales, use and franchise taxes, levies, assessments, imposts, duties, licenses and registration
fees and charges of any nature whatsoever, including interest, penalties and additions with respect thereto and any interest in respect of such additions or penalties, but excluding impact fees or other similar exactions levied or payable in
connection with the development or operation of any of the Facilities and excluding special assessments. 
 Tax Return:
Any return, filing, report, declaration, questionnaire or other document required to be filed for any period with any taxing authority (whether domestic or foreign) in connection with any Taxes (whether or not payment is required to be made with
respect to such document). 
 Title Commitment: A current commitment for title insurance for each of the Facilities.

 Title Policy: An owner’s policy of title insurance insuring each Facility Owner’s title to the Real
Property, effective as of the acquisition by Transferee of the ownership of the Transferor Interests as provided herein. 

United States Person: (i) Any individual or business entity, regardless of location, that is a resident of the United States;
(ii) any individual or business entity physically located within the United States; (iii) any business entity organized under the laws of the United States or of any state, territory, possession, or district thereof; and (iv) any
business entity, wheresoever organized or doing business, which is owned or controlled by an individual or business entity specified in (i) or (iii) above. 
 Section 1.02 Additional Defined Terms. As used herein, the following terms shall have the meanings defined in the recitals or sections indicated below: 

 

			
	Access Indemnified Parties	  	Section 3.01(b)
		
	Agreement	  	Preamble
		
	Business Representations	  	Introductory paragraph to Article VIII
		
	Closing	  	Section 11.01
		
	Closing Date	  	Section 3.03
		
	Closing Statement	  	Section 11.02(a)(v)
		
	Contracts	  	Section 8.17

  
 6 

			
		
	Due Diligence Materials	  	Section 3.01(f)
		
	Environmental Reports	  	Section 8.09
		
	Existing Venture Agreement	  	Recital B
		
	Facility Agreements	  	Section 2.02(c)
		
	Facility/Facilities	  	Recital D
		
	Facility Owners	  	Recital F
		
	Failure of Condition Notice	  	Section 13.02(f)
		
	GP Facility Owner Interests	  	Recital G
		
	GP Interest	  	Recital E
		
	Improvements	  	Section 2.02(a)(i)
		
	Indemnified Party	  	Section 12.11(a)
		
	Indemnifying Party	  	Section 12.11(a)
		
	Land	  	Section 2.02(a)(i)
		
	Manager	  	Recital I
		
	MetLife	  	Recital B
		
	MetLife Consent	  	Section 9.08
		
	MetLife Letter Agreement	  	Section 9.08
		
	Mutual Release	  	Section 9.08
		
	New Investor	  	Preamble
		
	New Investor Default Notice	  	Section 13.02(e)
		
	New Investor’s Objection Notice	  	Section 13.02(e)
		
	Owned Assets	  	Section 2.02
		
	Personal Property	  	Section 2.02(b)(v)
		
	Pool One GP	  	Recital E
		
	Pool One LLC	  	Recital A
		
	Pool One LLC Agreement	  	Recital C
		
	Property Representation Damage Cap	  	Section 12.05
		
	Rent Rolls	  	Section 8.12
		
	Residence Agreements	  	Section 2.02(c)
		
	Sunrise GP	  	Recital B
		
	Transferee Default Notice	  	Section 13.02(d)

  
 7 

			
		
	Transferee’s Objection Notice	  	Section 13.02(d)
		
	Transferor Default Notice	  	Section 13.02(c)
		
	Transferor’s Interest	  	Recital A
		
	Transferor’s Non-Imputation Affidavit	  	Section 3.02(a)(i)
		
	Transferor’s Failure of Condition Objection Notice	  	Section 13.02(e)
		
	Transferor’s Objection Notice	  	Section 13.02(c)
		
	SSLII	  	Preamble
		
	Survey	  	Section 3.02(a)(i)
		
	Transferee	  	Preamble
		
	Transferor	  	Preamble
		
	Transferee’s Default Notice	  	Section 13.02(d)

 Section 1.03 Exhibits. The inclusion of any information on any one exhibit will constitute
disclosure of such information for all purposes hereunder, and information need not be repeated on multiple exhibits. 
 Article
II. 
 AGREEMENT TO TRANSFER TRANSFEROR’S INTEREST 
 Section 2.01 Transfer of Transferor’s Interest. The parties acknowledge and agree neither Transferee nor New Investor is under any obligation to pay any monetary purchase price for
Transferor’s Interest and that Transferor is receiving good and valuable consideration for such transfer, including, without limitation, the covenants and obligations contained herein and the execution and delivery of the Mutual Release.

 Section 2.02 Owned Assets. As of the Closing, Sunrise GP and SSLII shall cause Transferor to cause Pool One LLC
to take such steps as may be necessary so that all tangible and intangible assets, excluding any assets leased or licensed from a third party, used in, and material to, the operation of the Facilities as they are currently being operated by the
Facility Owners (as further described below, the “Owned Assets”) will be owned by the Facility Owners or Pool One LLC (as the case may be) free of all Liens, other than Permitted Exceptions. The Owned Assets include the following:

 (a) Real Property. 
 (i) The Real Property, including, but not limited to, a fee simple interest in those certain real properties consisting of land (“Land”) and all buildings, structures, fixtures and other
improvements located thereon (“Improvements”), such Land and Improvements being more particularly described in Exhibit A. 

  
 8 

 (ii) All right, title and interest of the Facility Owners as landlord
(whether named as such therein, or by assignment or otherwise), including, but not limited to, in any leases and subleases (including Residence Agreements), if any, regarding the Real Property now existing or in effect at the Closing, and all
amendments, modifications, supplements, renewals and extensions thereof, together with any security deposits made by the lessees or Residents thereunder. 
 (b) Personal Property. 
 (i) Any and all furniture,
fixtures, furnishings, inventory, machinery and equipment used in connection with the Facilities, and all other personal property used in connection with the Real Property and located upon the Real Property now or as of the Closing. In no event
shall the Personal Property include any property owned by any Resident or Manager, notwithstanding Manager’s use of such property in connection with its management and administration of the Facilities. 

(ii) Goodwill and going concern value. 

(iii) All existing warranties and guaranties (express or implied) issued to the Facility Owners (or any prior owner or
lessee of the Facilities, to the extent Pool One LLC has an interest therein) in connection with the Improvements or the Personal Property described in paragraph (b)(i) above. 

(iv) All petty cash, all unrecognized community fees and all rights to hold Resident Deposits or other tenant security
deposits received or held in connection with each Facility. 
 (v) The tangible and intangible property described
in Sections 2.02(b)(i) through 2.02(b)(iv) shall be referred to herein as the “Personal Property.” 
 (c)
Facility Agreements and Residence Agreements. All rights of Facility Owners in, to and under all contracts, leases, subleases, agreements, commitments and other arrangements, and any amendments or modifications thereof, used or useful in the
operation of the Facilities as of the date hereof or made or entered into by the Facility Owners or Manager between the date hereof and the Closing Date in compliance with this Agreement (the “Facility Agreements”), and all
occupancy, residency, tenancy and similar written agreements entered into in the ordinary course of business with Residents, and all amendments, modifications, supplements, renewals, and extensions thereof (“Residence Agreements”).

 (d) Records. True and complete copies of all of the books, records, accounts, files, logs, ledgers and journals
pertaining to or used in the operation of the Facilities, including, but not limited to, any electronic data stored on computer disks or tapes, and originals of any of the foregoing that relate to the Facilities, together with the basic corporate,
partnership or limited liability company documents and records of Pool One LLC, Pool One GP and the Facility Owners. 
 (e)
Licenses. Any and all Licenses now held in the name of SSLII, Manager, Pool One LLC, Pool One GP, the Facility Owners, or any of their Affiliates and used or useful in 

  
 9 

 
the operation of the Facilities, and any renewals, extensions, amendments or modifications thereof, except to the extent not transferable or assignable under applicable law. 

(f) Miscellaneous Assets. Any other tangible or intangible assets, properties or rights of any kind or nature not otherwise
described above in this Section 2.02 and now or hereafter owned by the Facility Owners and used in connection with the operation of the Facilities, including, without limitation, any and all rights of the Facility Owners in and to
(i) all web sites, URLs, domain names, trade names, trademarks, service marks, logos and all copyrights used exclusively in connection with the Facilities, (ii) phone numbers and phone listings for the Facilities, (iii) all deposits
in connection with any Facility Agreement or utility service, (iv) all deposits, letters of credit and guarantees of future performance from third parties held by the Facility Owners and (v) all software, video tapes, films, brochures,
marketing packages and other advertising and promotional materials used solely in connection with the Facilities. 
 (g)
Excluded Assets. At Closing, the following assets shall not be considered Owned Assets: (i) all assets owned solely by Manager, SSLII or SSLI, including, without limitation, all web sites, URLs, domain names, trade names, trademarks,
service marks, logos and copyrights, (ii) all assets owned by tenants or licensees and (iii) all assets owned by Residents. 
 Section 2.03 Operating Cash. All cash held by Pool One LLC, Pool One GP and the Facility Owners (whether on hand or in bank accounts) as of the Closing Date shall be retained by Pool One LLC,
Pool One GP and the Facility Owners, other than an amount equal to Six Hundred and Twenty Thousand and One Hundred Dollars ($620,100.00) which shall be distributed to Transferor at Closing. 

Section 2.04 Down Payment. 
 (a) Not later than three (3) Business Days after the Contract Date, New Investor shall deposit with Escrow Agent the Down Payment. The parties acknowledge that, except as otherwise provided herein or
in the Framework Agreement, the Down Payment shall be applied at Closing toward the CNL Contribution (as defined in the Framework Agreement). The failure of the Down Payment to be timely deposited in accordance with this Section 2.04(a)
shall render this Agreement immediately terminable at any time thereafter by SSLII upon written notice to Transferor and Escrow Agent, unless prior to such termination New Investor makes the delinquent Down Payment and receives written acceptance
thereof from SSLII. 
 (b) If New Investor shall have deposited the Down Payment with the Escrow Agent in accordance with
Section 2.04(a), then, upon the expiration of the Due Diligence Period the Down Payment shall become non-refundable to New Investor, except as otherwise provided herein. 

(c) The Down Payment shall be held, invested and, along with all amounts earned thereon, credited and disbursed in accordance with the
provisions of Article XIII. 

  
 10 

 Article III. 
 DUE DILIGENCE 
 Section 3.01 Investigation of Facilities. Transferor
shall provide New Investor with the following rights of access for purposes of conducting due diligence with respect to the Facilities, Pool One LLC, Pool One GP and Facility Owner, subject to the terms and conditions of this
Section 3.01. 
 (a) To the extent not already delivered, Transferor and/or SSLII shall deliver, or direct Manager
to deliver, to New Investor accurate and complete copies of all due diligence materials reasonably requested by New Investor that are in Transferor’s SSLII’s, Pool One LLC’s, Pool One GP’s, Facility Owners’ or Manager’s
possession or under SSLII’s, Pool One LLC’s, Pool One GP’s, Facility Owner’s or Manager’s direct or indirect control. 
 (b) Subject to the rights of the Residents under the Residence Agreements, New Investor, and its agents, contractors and representatives, shall have the right to enter onto the Facilities prior to Closing
for purposes of conducting property surveys, environmental studies, engineering tests and such similar property-related tests, studies and/or investigations as New Investor deems necessary or desirable to evaluate the Facilities. All such tests,
studies and investigations shall be conducted at New Investor’s sole risk and expense. New Investor shall give SSLII reasonable prior notice of New Investor’s entry onto the Facilities for purposes of conducting such tests, studies and
investigations, and Manager shall have the right to accompany New Investor or its agents, employees, contractors and representatives during any such tests, studies and investigations. In performing its diligence activities, New Investor shall use
reasonable efforts to minimize any interference with the activities of Residents and to take such measures as SSLII may reasonably request in order to minimize, to the extent reasonably practicable, any disruption to the operation of the Facilities
and the occupancy of its Residents. New Investor and its agents, contractors and representatives shall not perform any soil, groundwater, or other environmental sampling, drilling, coring or other invasive sampling or testing without SSLII’s
consent, which consent shall not be unreasonably withheld. New Investor shall at all relevant times have liability insurance coverages in amounts reasonably acceptable to SSLII to cover the activities undertaken by New Investor and its agents,
employees, contractors and representatives pursuant to this Section 3.01(b). New Investor shall indemnify, defend and hold Transferor, Pool One LLC, Transferee and Manager and their respective direct and indirect Affiliates (the
“Access Indemnified Parties” harmless from and against any Loss, for damage to property and injury to persons, arising out of the entry by New Investor or its agents, employees, contractors or representatives onto the Facilities,
and their activities thereon, such indemnification to survive the Closing or termination of this Agreement. Notwithstanding anything to the contrary herein, the Access Indemnified Parties agree that in connection with any loss, liability, damage or
claim incurred by the Access Indemnified Parties and for which the Access Indemnified Parties are indemnified hereunder, the Access Indemnified Parties shall first seek recovery against any insurance provided by New Investor covering such loss,
liability, damage or claim before seeking recovery against New Investor; provided that to the extent the Access Indemnified Parties have not made such recovery within ninety (90) days after the occurrence of any such loss, liability, damage or
claim, the Access Indemnified Parties may seek recovery against New Investor. New Investor represents and warrants that to its 

  
 11 

 
knowledge, as of the date hereof, no event has occurred which could be the basis for a claim under the indemnity contained in this Section 3.01(b). 

(c) In the event that New Investor is not satisfied, in its sole and absolute discretion, with the proposed acquisition, ownership,
financing or operation of the Owned Assets or of the Transferor’s Interest by Transferee, then New Investor shall have the absolute right to terminate this Agreement at any time on or prior to the end of the Due Diligence Period. Such right to
terminate shall be exercised by New Investor giving written notice to SSLII and Transferor in accordance with Article XIII, which written notice must be received by SSLII and Transferor prior to the end of the Due Diligence Period. 

(d) Upon a termination of this Agreement by New Investor in accordance with Section 3.01(c), New Investor shall be entitled
to receive a disbursement of the Down Payment in accordance with the provisions hereof, and Transferor, SSLII, Transferee and New Investor shall be released from any and all further liabilities and obligations under this Agreement, except to the
extent otherwise expressly provided in this Agreement. 
 (e) If this Agreement shall not have been terminated in accordance
with Section 3.01(c), then this Agreement shall continue in full force in accordance with its terms and the Down Payment shall become non-refundable to New Investor, except as may otherwise be provided in this Agreement. 

(f) Upon any termination of this Agreement (whether pursuant to this Section 3.01 or otherwise), New Investor shall
(i) return all original due diligence materials provided by Manager, SSLII or Pool One LLC and destroy all other due diligence materials prepared by New Investor (collectively, the “Due Diligence Materials”), (ii) use its
commercially reasonable efforts to cause all persons to whom New Investor has provided any original Due Diligence Materials to return such materials and to destroy all other Due Diligence Materials, and (iii) certify to Manager, SSLII and Pool
One LLC that, to New Investor’s knowledge, all original Due Diligence Materials have been returned to Manager, SSLII or Pool One LLC and all other Due Diligence Materials have been destroyed. The provisions of this Section 3.01(f)
shall survive the termination of this Agreement. 
 Section 3.02 Title. 

(a) (i) New Investor shall obtain a Title Commitment and a survey (“Survey”) for each Facility.
Transferee shall pay at Closing the costs of such Title Commitment, each Title Policy, any endorsements to the Title Policies and a Survey for each Facility. To the extent required by the Title Company, SSLII and/or Sunrise GP shall execute a
non-imputation Affidavit in the form attached hereto as Exhibit D (the “Non-Imputation Affidavit”) as required to cause a non-imputation endorsement to be issued with each Title Policy and shall cause each Facility Owner to
execute any and all affidavits, indemnification agreements or other agreements necessary and reasonably requested by Escrow Agent for the issuance of said endorsement, each Title Policy and all other endorsements to each Title Policy, at the time of
Closing 

  
 12 

 (ii) Any real estate transfer taxes, fees or similar charges incurred in
connection with the transactions contemplated by this Agreement will be paid by Transferee. 
 (b) Notwithstanding any other
provision of this Section 3.02, Transferor shall cause to be released at or prior to Closing all Liens encumbering Transferor’s Interest, the GP Interest, the Pool One Facility Owner Interest and the GP Facility Owner Interest,
other than Permitted Exceptions. 
 (c) Neither Transferor nor any Facility Owner shall cause any change in the status of title
to the Facilities prior to Closing which would reasonably be anticipated to have a Material Adverse Effect. 
 Section 3.03
Satisfaction of Conditions Precedent. Transferor, SSLII, New Investor and Transferee will endeavor diligently and in good faith to satisfy as promptly as practical all conditions precedent set forth in this Agreement to the respective
obligations of Transferor, SSLII, New Investor and Transferee hereunder. The Closing shall take place, as provided in Section 11.01, on or before July 15, 2011 (such date, the “Closing Date”). If all conditions
precedent have not been satisfied or waived on or prior to the Closing Date, then the party in whose favor such condition precedent runs may terminate this Agreement and all other Documents (except for those provisions of this Agreement and such
other Documents that by their terms survive such termination), whereupon the parties hereto shall have no further obligations to each other in relation to this Agreement, such other Documents or the transactions contemplated hereunder or thereunder
(except for those obligations set forth in provisions of this Agreement and such other Documents that by their terms survive such termination), and provided that the provisions of Article XIII shall control the disposition of the Down Payment;
provided, however, notwithstanding the foregoing, that (a) provided that New Investor is not in default under any material term of this Agreement, in the event that any of the closing conditions set forth in Section 10.01(d), (e) or
(f) are not satisfied or waived by New Investor on or prior to the Closing Date, New Investor shall be permitted to extend the Closing Date, but not beyond August 26, 2011, by delivering written notice to Transferor, SSLII and Transferee
specifying the extended Closing Date and (b) provided that none of SSLII or Transferee is in default under any material term of this Agreement, in the event that any of the closing conditions set forth in Section 10.03(d), (e), (f) or
(g) are not satisfied or waived by SSLII and Transferee on or prior to the Closing Date, SSLII and Transferee shall be permitted to extend the Closing Date, but not beyond August 19, 2011, by delivering written notice to Transferor and New
Investor specifying the extended Closing Date. 
 Section 3.04 Expiration of Due Diligence Period. The parties
acknowledge that, notwithstanding anything else contained in this Agreement to the contrary, the Due Diligence Period shall be deemed to have expired prior to the date hereof for all purposes under this Agreement. 

Article IV. 

REPRESENTATIONS AND WARRANTIES OF NEW INVESTOR 
 New Investor represents and warrants to Transferor and SSLII as follows: 

  
 13 

 Section 4.01 Organization, Good Standing and Entity Authority. New Investor is a
limited partnership, duly organized, validly existing and in good standing under the laws of Delaware, and has all requisite corporate power to own and operate its properties and carry on its business. 

Section 4.02 Authorization and Binding Effect of Documents. New Investor (and any applicable Affiliate) has all requisite
power and authority to enter into this Agreement and, at Closing, shall have all requisite power and authority to enter into the other Documents to which New Investor is to be a party and to consummate the transactions contemplated by this Agreement
and such other Documents. The execution and delivery of this Agreement by New Investor and the consummation by New Investor of the transactions contemplated hereby, on the terms and subject to the conditions herein shall be, on or before the
expiration of the Due Diligence Period, duly authorized by all necessary action on the part of New Investor and New Investor’s board of directors. This Agreement has been, and each of the other Documents to which New Investor is to be a party
will be, duly executed and delivered by New Investor at or prior to Closing. This Agreement constitutes (and each of the other Documents to which New Investor is to be a party, when executed and delivered, will constitute) the valid and binding
obligation of New Investor enforceable against New Investor in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the rights of creditors generally and to the exercise
of judicial discretion in accordance with general principles of equity, whether applied by a court of law or of equity. 

Section 4.03 ERISA. 
 (a) New Investor is not an employee pension benefit plan subject to the provisions of Title IV of ERISA or subject to the minimum funding standards under Part 3, Subtitle B, Title I of ERISA or
Section 412 of the Code or Section 302 of ERISA, and none of its assets constitutes assets of any such employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA. 

(b) New Investor is not a “governmental plan” within the meaning of Section 3(32) of ERISA and the funds used by New
Investor to acquire the Facilities are not assets of any such governmental plan and are not subject to state statutes regulating investments of and fiduciary obligations with respect to governmental plans. The consummation of the transactions
contemplated by this Agreement will not violate such statutes. 
 Section 4.04 Absence of Conflicts. The execution,
delivery and performance by New Investor of this Agreement and the other Documents to which New Investor is to be a party, and consummation by New Investor of the transactions contemplated hereby and thereby, do not and will not (i) conflict
with or result in any breach of any of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in a violation of, or (iv) give any third party the right to modify, terminate or accelerate any obligation
under the provisions of any certificate or articles of incorporation, bylaws, operating or partnership agreement or other charter documents of New Investor (or its Affiliates), any law, regulation, judgment, rule, order or decree to which New
Investor (or its Affiliates) is subject, or any indenture, mortgage, lease, loan agreement or other agreement or instrument to which New Investor (or its Affiliates) is subject. 

  
 14 

 Section 4.05 Consents. Except for such reports and filings that an Affiliate of
New Investor may be required to make with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, the execution, delivery and performance by New Investor of this Agreement and the other Documents to which
New Investor is to be a party do not require any order, permission, consent, approval, authorization, registration or validation of, or exemption, clearance or other action by, or notice or declaration to, or filing with, any Governmental Entity,
or, except for the consent of New Investor’s board of directors which shall be obtained prior to the expiration of the Due Diligence Period, the consent, waiver or approval of any other Person which has not been obtained and is currently in
full force and effect. 
 Section 4.06 Broker’s or Finder’s Fees. No agent, broker, investment banker or
other person or firm acting on behalf of or under the authority of New Investor (or any of its Affiliates) is or will be entitled to any broker’s or finder’s fee or any other commission or similar fee, directly or indirectly, from
Transferor or SSLII in connection with the transactions contemplated by this Agreement. New Investor agrees to indemnify and hold Transferor and SSLII harmless from any Loss resulting from a breach of this representation and warranty. 

Section 4.07 No Judgments. Except as set forth in Section 4.07 of the Disclosure Statement, there are no
judgments presently outstanding and unsatisfied directly against New Investor, and New Investor is not involved in any litigation at law or in equity, or in any proceeding before any court, or by or before any Governmental Entity, which judgment,
litigation or proceeding could reasonably be anticipated to have a Material Adverse Effect and which is not fully covered by insurance and, to New Investor’s knowledge, (i) no such judgment, litigation or proceeding is threatened against
New Investor which could reasonably be anticipated to have a Material Adverse Effect and (ii) no investigation looking toward such a proceeding has begun or is contemplated. 

Section 4.08 No Insolvency. New Investor has not committed an act of bankruptcy, proposed a compromise or arrangement to its
creditors generally, had any petition for a receiving order in bankruptcy filed against it, instituted any proceeding with respect to a compromise or arrangement, instituted any proceeding to have itself declared bankrupt or wound-up, instituted any
proceeding to have a receiver appointed in connection with any of its assets, had any emcumbrancer take possession of any of its assets, or had any execution or distress become enforceable or become levied upon any of its assets. 

Section 4.09 Specially Designated National or Blocked Person. Neither New Investor (including, without limitation, any and
all of its partners, directors and officers), nor any of its Affiliates is a Specially Designated National or Blocked Person. Neither New Investor nor any of its Affiliates is directly or indirectly owned or controlled by the government of any
country that is subject to an embargo by the United States government. Neither New Investor nor any of its Affiliates is acting on behalf of a government of any country that is subject to such an embargo. 

Section 4.10 New Investor Financials. The audited and unaudited financial statements of New Investor for the period ending
April 30, 2011, copies of which have been provided to SSLII, fairly present in all material respects the financial condition and the results of operations of New Investor as at the respective dates and for the periods covered by such financial

  
 15 

 
statements, all in accordance with GAAP, consistently applied, subject, in the case of unaudited financial statements, to normal recurring year-end adjustments, and the absence of notes.

 As used in this Agreement, the phrase “to New Investor’s knowledge” and similar phrases shall mean the
current, actual (not constructive, imputed, or implied) knowledge, after due inquiry, of Raymon Byron Carlock, Jr. and Joseph T. Johnson, who New Investor represents are the persons most knowledgeable about New Investor’s overall business and
affairs. Notwithstanding anything herein to the contrary, New Investor shall have no Liability to Transferor or SSLII for a breach of any representation or warranty hereunder, if the breach in question is based on a condition, state of facts or
other matter which was currently and actually known (and not constructively, by imputation or by implication) by the party claiming such breach, or disclosed in writing to the party claiming such breach, on or prior to the date hereof. 

Article V. 

REPRESENTATIONS AND WARRANTIES OF TRANSFEREE 
 Transferee represents and warrants to Transferor and New Investor as follows: 

Section 5.01 Organization, Good Standing and Entity Authority. Transferee is a limited liability company, duly organized,
validly existing and in good standing under the laws of Delaware, and has all requisite corporate power to own and operate its properties and carry on its business. 
 Section 5.02 Authorization and Binding Effect of Documents. 
 (a)
Transferee (and any applicable Affiliate) has all requisite power and authority to enter into this Agreement and, at Closing, shall have all requisite power and authority to enter into the other Documents to which Transferee is to be a party and to
consummate the transactions contemplated by this Agreement and such other Documents. The execution and delivery of this Agreement by Transferee and the consummation by Transferee of the transactions contemplated hereby, on the terms and subject to
the conditions herein, have been duly authorized by all necessary action on the part of Transferee and Transferee’s equity holders and/or board of directors or managers. This Agreement has been, and each of the other Documents to which
Transferee is to be a party will be, duly executed and delivered by Transferee at or prior to Closing. This Agreement constitutes (and each of the other Documents to which Transferee is to be a party, when executed and delivered, will constitute)
the valid and binding obligation of Transferee enforceable against Transferee in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the rights of creditors generally
and to the exercise of judicial discretion in accordance with general principles of equity, whether applied by a court of law or of equity. 
 Section 5.03 ERISA. 
 (a) Transferee is not an employee pension
benefit plan subject to the provisions of Title IV of ERISA or subject to the minimum funding standards under Part 3, Subtitle B, Title I of ERISA or Section 412 of the Code or Section 302 of ERISA, and none of its assets constitutes
assets of any such employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA. 

  
 16 

 (b) Transferee is not a “governmental plan” within the meaning of
Section 3(32) of ERISA. The consummation of the transactions contemplated by this Agreement will not violate such statutes. 
 Section 5.04 Absence of Conflicts. The execution, delivery and performance by Transferee of this Agreement and the other Documents to which Transferee is to be a party, and consummation by
Transferee of the transactions contemplated hereby and thereby, do not and will not (i) conflict with or result in any breach of any of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in a
violation of, or (iv) give any third party the right to modify, terminate or accelerate any obligation under the provisions of any certificate or articles of incorporation, bylaws, operating or partnership agreement or other charter documents
of Transferee (or its Affiliates), any law, regulation, judgment, rule, order or decree to which Transferee (or its Affiliates) is subject, or any indenture, mortgage, lease, loan agreement or other agreement or instrument to which Transferee (or
its Affiliates) is subject. 
 Section 5.05 Consents. Except for and such reports and filings that an Affiliate of
Transferee may be required to make with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, the execution, delivery and performance by Transferee of this Agreement and the other Documents to which
Transferee is to be a party do not require any order, permission, consent, approval, authorization, registration or validation of, or exemption, clearance or other action by, or notice or declaration to, or filing with, any Governmental Entity, or
the consent, waiver or approval of any other Person which has not been obtained and is currently in full force and effect. 

Section 5.06 Broker’s or Finder’s Fees. No agent, broker, investment banker or other Person acting on behalf of or
under the authority of Transferee (or any of its Affiliates) is or will be entitled to any broker’s or finder’s fee or any other commission or similar fee, directly or indirectly, from Transferor in connection with the transactions
contemplated by this Agreement. Transferee agrees to indemnify and hold Transferor and its Affiliates harmless from any Loss resulting from a breach of this representation and warranty. 

Section 5.07 No Judgments. Except as set forth in Section 5.07 of the Disclosure Statement, there are no
judgments presently outstanding and unsatisfied directly against Transferee, and Transferee is not involved in any litigation at law or in equity, or in any proceeding before any court, or by or before any Governmental Entity, which judgment,
litigation or proceeding could reasonably be anticipated to have a Material Adverse Effect and which is not fully covered by insurance and, to Transferee knowledge, (i) no such judgment, litigation or proceeding is threatened against Transferee
which could reasonably be anticipated to have a Material Adverse Effect and (ii) no investigation looking toward such a proceeding has begun or is contemplated. 
 Section 5.08 No Insolvency. Transferee has not committed an act of bankruptcy, proposed a compromise or arrangement to its creditors generally, had any petition for a receiving order in
bankruptcy filed against it, instituted any proceeding with respect to a compromise or arrangement, instituted any proceeding to have itself declared bankrupt or wound-up, instituted any proceeding to have a receiver appointed in connection with any
of its assets, had any 

  
 17 

 
emcumbrancer take possession of any of its assets, or had any execution or distress become enforceable or become levied upon any of its assets. 

Section 5.09 Specially Designated National or Blocked Person. Neither Transferee (including, without limitation, any and all
of its members, directors and officers), nor any of its Affiliates is a Specially Designated National or Blocked Person; provided that Transferee makes no representations or warranties whatsoever with respect to stockholders of SSLI. Neither
Transferee nor any of its Affiliates is directly or indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Transferee nor any of its Affiliate is acting on behalf of a
government of any country that is subject to such an embargo. Notwithstanding the foregoing, Transferee makes no representations or warranties whatsoever with respect to stockholders of SSLI. 

As used in this Agreement, the phrase “to Transferee’s knowledge” and similar phrases shall mean the current, actual (not
constructive, imputed, or implied) knowledge, after due inquiry, of Greg Neeb, Philip Kroskin, Edward Burnett and Jerry Liang, who Transferee represents are the persons most knowledgeable about Transferee’s overall business and affairs.
Notwithstanding anything herein to the contrary, Transferee shall have no Liability to Transferor or New Investor for a breach of any representation or warranty hereunder, if the breach in question is based on a condition, state of facts or other
matter which was currently and actually known (and not constructively, by imputation or by implication) by the party claiming such breach, or disclosed in writing to the party claiming such breach, on or prior to the date hereof. 

Article VI. 

REPRESENTATIONS AND WARRANTIES REGARDING TRANSFEROR 
 SSLII represents and warrants to Transferee and New Investor as follows: 

Section 6.01 Organization and Good Standing and Entity Authorization. Transferor is a limited partnership, duly organized,
validly existing and in good standing under the laws of the State of Delaware. Transferor has all requisite limited partnership power to own, operate and lease its properties and carry on its business. Sunrise GP is the sole general partner of
Transferor and SSLII and MetLife comprise the sole limited partners of Transferor. 
 Section 6.02 Authorization and
Binding Effect of Documents. Transferor has all requisite power and authority to enter into this Agreement and, at Closing, shall have all requisite power and authority to enter into the other Documents to which it is to be a party and to
consummate the transactions contemplated by this Agreement and such other Documents, subject to receipt of the MetLife Consent. The execution and delivery of this Agreement by Transferor and the consummation by Transferor of the transactions
contemplated hereby, on the terms and subject to the conditions herein, have been duly authorized by all necessary action on the part of Transferor and Transferor’s limited partners, subject to receipt of the MetLife Consent. This Agreement has
been, and each of the other Documents to which Transferor is to be a party will be, duly executed and delivered by Transferor at or prior to Closing. This Agreement constitutes (and each of the other Documents to which Transferor is to be a party,
when executed and delivered, will constitute) the valid and binding obligation of Transferor enforceable against Transferor in accordance with its terms, subject to applicable bankruptcy, 

  
 18 

 
insolvency, reorganization, moratorium and other similar laws affecting the rights of creditors generally and to the exercise of judicial discretion in accordance with general principles of
equity, whether applied by a court of law or of equity. 
 Section 6.03 Absence of Conflicts. Subject to receipt of
the MetLife Consent, the execution, delivery and performance by Transferor of this Agreement and the other Documents to which Transferor is to be a party, and consummation by Transferor of the transactions contemplated hereby and thereby, do not and
will not (i) conflict with or result in any breach of any of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in a violation of, (iv) give any third party the right to modify, terminate or
accelerate any obligation under, the provisions of the certificate or articles of incorporation, bylaws, operating or partnership agreement or other charter documents of Transferor (or its Affiliates), any indenture, mortgage, lease, loan agreement
or other agreement or instrument by which Transferor (or its Affiliates) is bound or affected, or any law, regulation, rule, judgment, order or decree to which Transferor (or its Affiliates) is subject. 

Section 6.04 Consents and Approvals. The execution, delivery and performance by Transferor of this Agreement and the other
Documents, and consummation by Transferor of the transactions contemplated hereby and thereby, do not and will not require the authorization, consent, approval, exemption, clearance, order, permission, license, registration or validation of, or
exemption by, or other action by or notice or declaration to, or filing with, any court or Governmental Entity, or the consent, waiver or approval of any other Person which has not been obtained and is currently in full force and effect, except for
the MetLife Consent and the consent of SSLII, which consent and approval shall be evidenced by SSLII’s execution and delivery of this Agreement. 
 Section 6.05 Broker’s or Finder’s Fees. No agent, broker, investment banker, or other Person acting on behalf of or under the authority of Transferor (or any of its Affiliates) is or
will be entitled to any broker’s or finder’s fee or any other commission or similar fee, directly or indirectly, from Transferee, SSLII or New Investor in connection with the transactions contemplated by this Agreement. Transferor agrees
to indemnify and hold Transferee, SSLII, New Investor and their respective Affiliates harmless from any Loss resulting from a breach of this representation and warranty. 
 Section 6.06 Ownership of Transferor’s Interest. 
 (a) Transferor
is the sole legal and beneficial owner of Transferor’s Interest. Transferor’s Interest is free and clear of all Liens encumbering Transferor’s Interest, and Transferor has good and marketable title to Transferor’s Interest.
Transferor’s Interest is validly issued, fully paid and non-assessable. There is no restriction or limitation on Transferor’s right to sell Transferor’s Interest as contemplated by this Agreement, except for the MetLife Consent and
that the approval and consent of SSLII is required for the consummation by Transferor of the transactions contemplated by this Agreement, which consent and approval shall be evidenced by SSLII’s execution and delivery of this Agreement. At
Closing, Transferor will transfer to Transferee good and marketable title to Transferor’s Interest, free and clear of all Liens. 
 Section 6.07 ERISA. 

  
 19 

 (a) Transferor is not an employee pension benefit plan subject to the provisions of Title IV
of ERISA or subject to the minimum funding standards under Part 3, Subtitle B, Title I of ERISA or Section 412 of the Code or Section 302 of ERISA, and none of its assets constitute assets of any such employee benefit plan subject to Part
4, Subtitle B, Title I of ERISA. 
 (b) Transferor is not a “governmental plan” within the meaning of
Section 3(32) of ERISA. The consummation of the transactions contemplated by this Agreement will not violate such statutes. 
 Section 6.08 No Judgments. Except as set forth in Section 6.08 of the Disclosure Statement, there are no judgments presently outstanding and unsatisfied directly against
Transferor, and Transferor is not involved in any litigation at law or in equity, or in any proceeding before any court, or by or before any Governmental Entity, which judgment, litigation or proceeding could reasonably be anticipated to have a
Material Adverse Effect and which is not fully covered by insurance and, to SSLII’s knowledge, (i) no such judgment, litigation or proceeding is threatened against Transferor which could reasonably be anticipated to have a Material Adverse
Effect and (ii) no investigation looking toward such a proceeding has begun or is contemplated. 
 Section 6.09 No
Insolvency. Transferor has not committed an act of bankruptcy, proposed a compromise or arrangement to its creditors generally, or had any petition for a receiving order in bankruptcy filed against it, instituted any proceeding to have itself
declared bankrupt or wound-up, instituted any proceeding to have a receiver appointed in connection with any of its assets, had any emcumbrancer take possession of any of its assets, or had any execution or distress become enforceable or become
levied upon any of its assets. 
 Section 6.10 FIRPTA. Transferor is not a “foreign person” within the
meaning of Section 1445 of the Code and the regulations issued thereunder. 
 Section 6.11 Specially Designated
National or Blocked Person. Based solely on publicly-available information or as otherwise disclosed to SSLII, neither Transferor, nor any of its shareholders, directors or officers is a Specially Designated National or Blocked Person. Neither
Transferor nor any of its shareholders is directly or indirectly owned or controlled by the government of any country that is subject to an embargo by the United States government. Neither Transferor nor any of its shareholders, directors or
officers is acting on behalf of a government of any country that is subject to such an embargo. 
 Article VII. 

REPRESENTATIONS AND WARRANTIES OF SSLII 
 SSLII represents and warrants to New Investor as follows: 
 Section 7.01
Organization, Good Standing, Entity Authority and Qualification. SSLII is a corporation duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia. SSLII has all requisite company power to own,
operate and lease its properties and carry on its business. Each of Sunrise GP, Pool One LLC, Pool One GP and the Facility Owners are limited liability companies or limited partnerships, as the case may be, duly

  
 20 

 
organized, validly existing and in good standing under the laws of their respective jurisdictions of organization, have all requisite company power to own and operate their properties and carry
on their businesses, and are qualified to do business in each of the jurisdictions in which the nature of their business or the ownership of their properties make such qualification necessary. 

Section 7.02 Authorization and Binding Effect of Documents. 

(a) SSLII (and any applicable Affiliate) has all requisite power and authority to enter into this Agreement and, at Closing, shall have
all requisite power and authority to enter into the other Documents to which it is a party and to consummate the transactions contemplated by this Agreement and such other Documents. The execution and delivery of this Agreement by SSLII and the
consummation by SSLII of the transactions contemplated hereby, on the terms and subject to the conditions herein, have been duly authorized by all necessary action on the part of SSLII and SSLII’s shareholders, members and board of directors.
This Agreement has been, and each of the other Documents to which SSLII is to be a party will be, duly executed and delivered by SSLII at or prior to Closing. This Agreement constitutes (and each of the other Documents to which SSLII is to be a
party, when executed and delivered, will constitute) the valid and binding obligation of SSLII enforceable against SSLII in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the rights of creditors generally and to the exercise of judicial discretion in accordance with general principles of equity, whether applied by a court of law or of equity. 

Section 7.03 Absence of Conflicts. The execution, delivery and performance by SSLII of this Agreement and the other Documents
to which SSLII is to be a party, and consummation by SSLII of the transactions contemplated hereby and thereby, do not and will not (i) conflict with or result in any breach of any of the terms, conditions or provisions of, (ii) constitute
a default under, (iii) result in a violation of, or (iv) give any third party the right to modify, terminate or accelerate any obligation under, the provisions of the certificate or articles of incorporation, bylaws, operating or
partnership agreement or other charter documents of SSLII, Pool One LLC, Pool One GP, the Facility Owners or any of their Affiliates, any indenture, mortgage, lease, loan agreement or other agreement or instrument by which SSLII, Pool One LLC, Pool
One GP, the Facility Owners or any of their Affiliates is bound or affected, or any law, regulation, rule, judgment, order or decree to which SSLII, Pool One LLP, Pool One GP, the Facility Owners or any of their Affiliates is subject. 

Section 7.04 Consents. Except as set forth in Section 7.04 of the Disclosure Statement, the execution, delivery
and performance by SSLII of this Agreement and the other Documents to which it is a party, and consummation by SSLII of the transactions contemplated hereby and thereby, do not and will not require the authorization, consent, approval, exemption,
clearance or other action by or notice or declaration to, or filing with, any court or Governmental Entity, or the consent, waiver or approval of any other Person. 
 Section 7.05 Broker’s or Finder’s Fees. No agent, broker, investment banker, or other Person acting on behalf of Pool One LLC, SSLII (or any Affiliate of Pool One LLC or SSLII) or
under its authority is or will be entitled to any broker’s or finder’s fee or any other commission or similar fee, directly or indirectly, from Transferor or New Investor in connection with the transactions contemplated by this Agreement.
SSLII agrees to indemnify and hold Transferor, 

  
 21 

 
Transferee and their Affiliates harmless from any Loss resulting from a breach of this representation and warranty. Notwithstanding the provisions of Section 12.01 below, such
agreement to indemnify shall survive the Closing without time limitation. 
 Section 7.06 ERISA. 

(a) SSLII is not an employee pension benefit plan subject to the provisions of Title IV of ERISA or subject to the minimum funding
standards under Part 3, Subtitle B, Title I of ERISA or Section 412 of the Code or Section 302 of ERISA, and none of its assets constitute assets of any such employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA.

 (b) SSLII is not a “governmental plan” within the meaning of Section 3(32) of ERISA and no funds received by
SSLII in this transaction are assets of any such governmental plan and are not subject to state statutes regulating investments of and fiduciary obligations with respect to governmental plans. The consummation of the transactions contemplated by
this Agreement will not violate such statutes. 
 Section 7.07 No Judgments. Except as set forth in
Section 7.08 of the Disclosure Statement, there are no judgments presently outstanding and unsatisfied against SSLII, Pool One LLC, Pool One GP or any of the Facility Owners, and, to SSLII’s knowledge, none of SSLII, Pool One LLC,
Pool One GP or the Facility Owners is involved in any litigation at law or in equity, or in any proceeding before any court, or by or before any governmental or administrative agency, which judgment, litigation or proceeding would reasonably be
anticipated to have a Material Adverse Effect and which is not fully covered by insurance and, to SSLII’s knowledge, no such judgment, litigation or proceeding is threatened against SSLII, Pool One LLC, Pool One GP or any of the Facility
Owners. 
 Section 7.08 No Governmental Approvals. Except as set forth in Section 7.09 of the Disclosure
Statement, no order, permission, consent, approval, license, authorization, registration or validation of, or filing with, or exemption by, any Governmental Entity is required to authorize, or is required in connection with the execution, delivery
and performance by SSLII of this Agreement, any Document to which SSLII is a party or SSLII’s taking of any action thereby contemplated, which has not been (or as of the Closing will not have been) obtained and is (or as of Closing will be) in
full force and effect. 
 Section 7.09 No Insolvency. None of Pool One LLC, Pool One GP, the Facility Lessees or the
Facility Owners has committed an act of bankruptcy, proposed a compromise or arrangement to its creditors generally, had any petition for a receiving order in bankruptcy filed against it, taken any proceeding with respect to a compromise or
arrangement, taken any proceeding to have itself declared bankrupt or wound-up, taken any proceeding to have a receiver appointed in connection with its interest in any Facility, had any encumbrancer take possession of its interest in any Facility,
or had any execution or distress become enforceable or become levied upon its interest in any Facility. SSLII has not committed an act of bankruptcy, had any petition for a receiving order in bankruptcy filed against it, filed in any court in lieu
of bankruptcy any legal proceeding with respect to a compromise or arrangement, filed any legal proceeding to have itself declared bankrupt or wound-up, taken any proceeding to have a receiver appointed in connection with its interest in any
Facility, had any encumbrancer take 

  
 22 

 
possession of its interest in any Facility, or had any execution or distress become enforceable or become levied upon its interest in any Facility. 

Section 7.10 Ownership and Control of Transferee. Prior to Closing, SSLII will control the business and affairs of Transferee
and will have the power and authority to cause Transferee to execute and deliver the documents to be provided by Transferee under this Agreement and to undertake the actions required to be performed by Transferee under this Agreement. 

As used in this Agreement, the phrase “to SSLII’s knowledge” and similar phrases shall mean the current, actual (not
constructive, imputed, or implied) knowledge, after due inquiry, of Greg Neeb, Philip Kroskin, Edward Burnett and Jerry Liang, who SSLII represents are the persons most knowledgeable about SSLII’s overall business and affairs. Notwithstanding
anything herein to the contrary, SSLII shall have no Liability to New Investor for a breach of any representation or warranty hereunder, if the breach in question is based on a condition, state of facts or other matter which was currently and
actually known (and not constructively, by imputation or by implication) by the party claiming such breach, or disclosed in writing to the party claiming such breach, on or prior to the date hereof. 

Article VIII. 

BUSINESS REPRESENTATIONS 
 SSLII represents and warrants to New Investor, Transferee and each Facility Owner as follows (the following representations, the “Business Representations”): 

Section 8.01 Financial Statements; No Undisclosed Liabilities; Absence of Certain Changes.  

(a) The unaudited financial statements of Pool One LLC as identified in Section 8.01 of the Disclosure Statement (the
“Pool One Financials”), copies of which have been provided to New Investor, fairly present in all material respects the financial condition and the results of operations of Pool One LLC as of the respective dates and for the periods
covered by such financial statements, all in accordance with GAAP, consistently applied, subject to normal recurring year-end adjustments, and the absence of notes. 
 (b) Except as set forth in the Pool One Financials, there are no material Liabilities of Pool One LLC of any kind whatsoever of the type required to be reflected on a balance sheet prepared in accordance
with GAAP, other than: 
 (i) contingent Liabilities, which, in accordance with GAAP, are not required to be
reflected on a balance sheet; 
 (ii) any Liabilities incurred since April 30, 2011 in the ordinary course
of business of Pool One LLC consistent with past practice or in connection with this Agreement or the other Documents; and 
 (iii) in the case of unaudited financial statements, normal recurring year-end adjustments and the absence of notes. 

  
 23 

 (c) Except as set forth in Section 8.01(c) of the Disclosure Statement, since
April 30, 2011, the Pool One LLC has conducted its business in the ordinary course of business consistent with past practice and there has not been: 
 (i) any event, occurrence or development of a state of circumstances or facts which, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect;

 (ii) other than dividends and distributions paid in the ordinary course of business of Pool One LLC consistent
with past practice, any declaration, setting aside or payment of any dividend or other distribution with respect to any equity interest of Pool One LLC (other than dividends or distributions in cash in an amount consistent with the requirements of
this Agreement), or any split, combination or reclassification of any equity interest of Pool One LLC; 
 (iii)
any amendment of any term of any outstanding equity interest of Pool One LLC; 
 (iv) any incurrence, assumption
or guarantee by Pool One LLC of any indebtedness that would have a Material Adverse Effect; 
 (v) as of the
expiration of the Due Diligence Period, any creation or assumption by Pool One LLC of any Lien on any asset that would have a Material Adverse Effect, except for Permitted Exceptions; 

(vi) any (i) transaction or commitment made, or any Contract entered into, by Pool One LLC relating to its assets or
business (including the acquisition or disposition of any assets) that involved the acquisition or disposition of assets other than for fair value or that involved an amount in excess of One Hundred Thousand Dollars ($100,000), or
(ii) relinquishment by Pool One LLC of any material Contract or other right outside of the ordinary course of business consistent with past practice that would have Material Adverse Effect; and 

(vii) any change in any method of accounting or accounting practice not required by GAAP by Pool One LLC or any election
for Taxes. 
 Section 8.02 Books and Records; Internal Controls. All records relating to Pool One LLC, Pool One GP
and the Facility Owners (including books and records, contract documents, accounts receivable data, financial statements and other similar records) are maintained, in all material respects, to the extent applicable, in accordance with GAAP and the
internal controls on financial reporting of Pool One LLC, Pool One GP and the Facility Owners. 
 Section 8.03
Obligations. Except (a) to the extent reflected or reserved against in the Pool One Financials, (b) normal trade creditors payable in the ordinary and normal course of business since the dates of such Pool One Financials and
(c) the Existing Owner Financing, none of Pool One LLC, Pool One GP or the Facility Owners have any material outstanding Liabilities, which in each case would reasonably be anticipated to have a Material Adverse Effect. 

  
 24 

 Section 8.04 Medicare; Medicaid. Except as set forth in Section 8.04
of the Disclosure Statement, none of Pool One LLC, Pool One GP, Manager or any Facility Owner are party to any Medicaid/Medicare Contracts with respect to the provision of services at the Facilities. Except as set forth in Section 8.04
of the Disclosure Statement, no action, proceeding, or investigation in connection with Medicare, Medicaid or other public or private third-party payor or other programs is pending or, to SSLII’s knowledge, threatened against any of SSLII, Pool
One LLC, Pool One GP, Manager or any Facility Owner in connection with the Facilities which would reasonably be anticipated to have a Material Adverse Effect. To SSLII’s knowledge, none of SSLII, Pool One LLC, Pool One GP, Manager or any
Facility Owner has received written notice of any threatened or pending investigation in connection with the Facilities relating to (i) any fraud, false statement or false claim applicable to its business or (ii) any patient care, patient
rights or other law applicable to its business, in each case which would reasonably be anticipated to have a Material Adverse Effect. None of SSLII, Pool One LLC, Pool One GP, Manager, or any Facility Owner has committed any material violation of
the Medicare and Medicaid fraud and abuse provisions of the Social Security Act, any similar state law or Title VI of the Civil Rights Act, in each case which would reasonably be anticipated to have a Material Adverse Effect. 

Section 8.05 No Possessory Rights. Except for any parties in possession pursuant to, and any rights of possession granted
under, the Residence Agreements, and except as shown in the Title Commitments or as set forth in Section 8.05 of the Disclosure Statement, there are no parties in possession of any part of the Facilities, and there are no other rights of
possession which have been granted by Pool One LLC, Pool One GP, or any Facility Owners to any third party or parties, except for licenses to use space which are cancelable by the Pool One LLC, Pool One GP or Facility Owners on ninety (90) days
or less notice. 
 Section 8.06 Employees. None of Pool One LLC, Pool One GP or the Facility Owners has any
employees. All personnel employed at the Facilities are employees of Manager. 
 Section 8.07 Licenses. Except as
set forth in Section 8.07 of the Disclosure Statement, Pool One LLC, Pool One GP, Manager and the Facility Owners have all material Licenses necessary to the conduct of their business as presently conducted and all such Licenses are
valid and in full force and effect. Except with respect to the Healthcare Permits, no consent is required from any issuer of a License, where the failure to obtain such consent would reasonably be expected to have a Material Adverse Effect. There is
no pending or, to SSLII’s knowledge, threatened action, investigation or proceeding with respect to revocation, cancellation, suspension or non-renewal of any License for any Facility which would reasonably be anticipated to have a Material
Adverse Effect, and except as set forth in Section 8.07 of the Disclosure Statement, no notice has been received by SSLII, the Facility Owners, Manager, Pool One LLC or Pool One GP from any Governmental Entity currently asserting the
violation of the terms of any Licenses or currently threatening to revoke, cancel, suspend or not renew the terms of any such existing License, which would reasonably be anticipated to have a Material Adverse Effect. 

Section 8.08 Litigation. A true and correct listing and summary of all litigation with respect to the Real Property,
Facilities, Pool One LLC, Pool One GP, Facility Owners or (with respect to the Facilities) Manager which is not fully covered by insurance in place (subject to 

  
 25 

 
applicable deductibles) with respect to each of the Facilities and which would reasonably be anticipated to have a Material Adverse Effect which is pending or, to SSLII’s knowledge,
threatened in writing against any of SSLII (as to the Facilities), the Real Property, the Facility Owners, Pool One LLC, Pool One GP or the Manager (as to the Facilities) is included as Section 8.08 of the Disclosure Statement.

 Section 8.09 Environmental Matters. SSLII has provided New Investor with access to or copies of all environmental
reports and documentation related to the environmental reports in the possession of SSLII, Pool One LLC, Pool One GP, the Facility Owners, or Manager with respect to the Real Property and the Facilities (the “Environmental
Reports”). Except as set forth on Section 8.09 of the Disclosure Statement, no written notice has been received by the Facility Owners, Manager, Pool One GP or Pool One LLC that the Real Property or Facilities are in violation
of Environmental Laws. Except as disclosed in the Environmental Reports and in any additional environmental reports received by New Investor prior to the Closing Date, to SSLII’s knowledge (a) there are no underground storage tanks on the
Real Property and (b) the Facilities do not contain any Hazardous Substances other than to a de minimus extent and in any event in compliance with Environmental Laws. Except as set forth on Section 8.09 of the Disclosure Statement
or in any additional environmental reports and documentation received by New Investor prior to the Closing Date, to SSLII’s knowledge there are no Environmental Claims and no Environmental Liabilities other than to a de minimus extent and in
any event in compliance with Environmental Laws. 
 Section 8.10 Intentionally Omitted. 

Section 8.11 Compliance with Laws. Except as would not reasonably be anticipated to have a Material Adverse Effect and except
as set forth in Section 8.11 of the Disclosure Statement or in any zoning letters provided to New Investor prior to the end of the Due Diligence Period, no written notice has been received by the Facility Owners, Manager, Pool One LLC or Pool
One GP, nor does SSLII have knowledge, that the Facilities are in violation of any applicable statute, law, regulation, rule, ordinance, order, License or permit. 
 Section 8.12 Residence Agreements. New Investor has been supplied with true and correct copies of the forms (on a state-by-state basis) of the Residence Agreement currently in use for new
admissions at the Facilities. No Facility Owner is in default, and, to SSLII’s knowledge, no Resident is in default, under any of its obligations under any Residence Agreement which default could reasonably be anticipated to have a Material
Adverse Effect. The Residence Agreements identified on the Rent Rolls were in full force and effect as of the date of the applicable Rent Roll, except as would not reasonably be anticipated to have a Material Adverse Effect. The Rent Rolls are true
and correct in all respects except as would not reasonably be anticipated to have a Material Adverse Effect, subject to the information on the then-current aged receivables report. As used in this Section 8.12, the term “Rent
Rolls” means the schedules of Residents at the Facilities provided pursuant to Exhibit E. 
 Section 8.13
Taxes. To SSLII’s knowledge, each of SSLII, Pool One LLC, Pool One GP and the Facility Owners has prepared and duly and timely filed (or has filed as part of a consolidated tax filing) all tax reports and returns required to be filed by
it and all such returns are accurate in all material respects. In addition, except as set forth in Section 8.13 of the 

  
 26 

 
Disclosure Statement, to SSLII’s knowledge, whether or not shown on such returns or reports to be due, of SSLII, Pool One LLC, Pool One GP and the Facility Owners each has duly paid or
provided for the payment of all taxes and other charges due or claimed to be due from it by federal, state, local or foreign taxing authorities (including, without limitation, those due in respect of the Real Property and the Facilities, and the
income, franchises, licenses, sales, usages or payrolls associated therewith). There are no tax liens upon any property or assets of SSLII, Pool One LLC, Pool One GP and the Facility Owners, except liens for current taxes not yet delinquent.

 Section 8.14 Personal Property. As of the expiration of the Due Diligence Period, each Facility Owner shall own
or lease all of the Personal Property that is currently used in the operations of the applicable Facility as it is currently conducted, free and clear of all Liens other than Permitted Exceptions. There are no assets necessary or material to the
operation of the Facilities as currently operated that are not Owned Assets, other than Excluded Assets. 
 Section 8.15
Title. To SSLII’s knowledge and subject to easements, covenants, conditions and restrictions of record as of the date hereof and to Permitted Exceptions in place on or prior to the expiration of the Due Diligence Period, (a) each
Facility Owner is the owner of a fee simple interest in the Owned Real Property set forth across from such Facility Owner’s name as described on Exhibit A attached hereto and (b) the Facility Owner is, or will be at Closing, the
owner of all of the remaining property constituting the Personal Property with respect to the Facility owned by such Facility Owner, free and clear of all Liens, except for Permitted Exceptions and as otherwise expressly disclosed in this Agreement
(including Section 1.01 of the Disclosure Statement). 
 Section 8.16 Intentionally Omitted. 

Section 8.17 Contracts. Except as would not be reasonably anticipated to have Material Adverse Effect, (a) all service,
maintenance, purchase order and other contracts, agreements and equipment leases as are needed with respect to the ownership, maintenance, operation, provisioning or equipping of the Facilities as presently conducted (the
“Contracts”) are in full force and effect and (b) none of SSLII, Manager or any Facility Owner, or, to SSLII’s knowledge, any other party to the Contracts, is in breach or default under any obligation thereunder or any
provisions thereof, and no condition exists that, with notice or the passage of time, or both, will constitute a breach or default under any obligation thereunder or any provisions thereof. Section 8.17 of the Disclosure Statement sets
forth a true, correct and complete list of those Contracts which were entered into pursuant to a master or other agreement pertaining to each Facility. 
 Section 8.18 Insurance. Neither Pool One LLC, Pool One GP, SSLII, Facility Owners, or Manager has received written notice from any insurance carrier of defects or inadequacies in the Real
Property or Facilities, which, if uncorrected, would result in a termination of insurance coverage or a material increase in the premiums charged therefor. Section 8.18 of the Disclosure Statement attached hereto sets forth a correct and
complete list of each insurance policy maintained with respect to the Real Property and or Facilities. With respect to each insurance policy shown on Section 8.18 of the Disclosure Statement: (i) the policy is legal, valid, binding,
enforceable and in full force and effect, (ii) neither Pool One LLC, Pool One GP, SSLII, Facility 

  
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Owners or Manager, nor to SSLII’s knowledge, any other party to the policy, is in material breach or default thereunder, and to SSLII’s knowledge, no event has occurred which, with
notice or the lapse of time, would constitute such a material breach or default, or permit termination or modification under such policy against any insured party. 
 Section 8.19 Condemnation. Neither SSLII or Manager has received any written notice of, nor, to SSLII’s Knowledge, is there any pending or contemplated condemnation, eminent domain or
similar proceeding with respect to all or any portion of the Owned Asset. 
 Section 8.20 Purchase Rights. There are
no unrecorded purchase contracts, options or other agreements of any kind, whereby any Person other than the Transferor or Transferee has or will have any right to acquire title to (a) all or any portion of the Real Property or (b) all or
any portion of the Personal Property. 
 Section 8.21 Compliance with Permitted Exceptions. Neither Transfer, SSLII,
Manager or any Facility Owner has received or given any written notice of any violation of any Permitted Exception which has not been cured or dismissed. 
 Section 8.22 Utilities. All public utilities including, without limitation, sewer, water, electric, gas, and telephone, required for the operation of the Facilities as currently operated are
installed and lawfully operating, and all installation and connection charges therefor have been paid in full, except as would not reasonably be anticipated to have a Material Adverse Effect. Neither Transferor, SSLII, Manager nor any Facility Owner
has received any notice stating that the provision of utilities violates any public or private easement. 
 Section 8.23
Existing Owner Financing Documents. Section 8.23 of the Disclosure Statement sets forth a true, correct and complete list of all notes, mortgages, deeds of trust, security agreements, and other material instruments, documents and
agreements relating to the Existing Owner Financing. 
 Notwithstanding anything to the contrary contained herein, the parties acknowledge that
the Business Representations shall run solely to the benefit of New Investor, Transferee and each Facility Owner; and Transferor shall not be entitled to bring any claim or cause of action against SSLII for any breach of the Business
Representations. 
 Article IX. 
 COVENANTS 
 Section 9.01 Publicity. The parties agree that, prior to
the Closing, no public release or announcement concerning the transactions contemplated hereby shall be issued by any party without the prior written consent of the other parties, except as required by law or applicable regulations. The parties may
disclose this Transfer Agreement and matters relating to the subject matter hereof to (i) their professional advisers (including legal and financial advisers) or (ii) to any prospective or existing lenders, provided that in each case any
such party informs the recipient of the confidentiality obligations of such party hereunder. The parties understand and agree that if required by law, or if required by applicable disclosure requirements under applicable securities laws or other
laws, one or more of the parties may (i) disclose certain information concerning the transaction, (ii) issue one (1) or more press releases concerning the 

  
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execution of this Agreement and/or the transfer of the Transferor’s Interest, provided that with respect to any press release which identifies Transferor, MetLife, SSLII, SSLI,
Transferee, New Investor or their respective Affiliates, the party issuing the release shall use its reasonable best efforts to seek the prior approval of SSLII (as to itself, Transferor, Transferee, or their Affiliates) or New Investor, as
applicable, such approval not to be unreasonably delayed or withheld and, in any event, such requirement to seek prior approval not to preclude any party or its Affiliate from complying with applicable disclosure obligations under law, and
(iii) file a copy of this Agreement with the Securities and Exchange Commission. 
 Section 9.02 Commercially
Reasonable Efforts. Subject to the terms and conditions of this Agreement, each party will use its commercially reasonable efforts to take all action and to do all things necessary, proper or advisable to satisfy any condition hereunder in its
power to satisfy and for which it is responsible for the satisfaction of, and to consummate and make effective as soon as practicable the transactions contemplated by this Agreement. Without limiting the foregoing, SSLII shall cause Transferee to
take and do all such actions and things. 
 Section 9.03 No Recordation. SSLII, New Investor, Transferor and
Transferee each agrees that neither this Agreement nor any memorandum or notice hereof shall be recorded and each of Transferee and New Investor agrees (i) not to file any notice of pendency or other instrument (other than a judgment) against
the Facilities or any interest therein in connection herewith and (ii) to indemnify Transferor and SSLII against all Losses or Liabilities incurred by either of them by reason of the filing by Transferee or New Investor, as applicable, of such
notice of pendency or other instrument. 
 Section 9.04 Licenses. During the Due Diligence Period, Transferee shall
apply for, and diligently pursue (and SSLII will cause Manager and the Facility Owners to apply for and diligently pursue), issuance of the Licenses. Transferor and SSLII shall cooperate, and shall cause the Facility Owners to cooperate, with
Transferee in such manner as Transferee may reasonably request in connection with the issuance to Transferee, the Facility Owners and/or Manager (or other appropriate party) of the Licenses. Without limiting the generality of the foregoing,
Transferor and SSLII shall promptly provide to New Investor such information in its possession and control concerning Pool One LLC, Pool One GP, Manager, the Facility Owners and the Facilities as may be requested by any Governmental Entity in
connection with the issuance of the Licenses and, if requested by such Governmental Entity, Transferor and SSLII shall allow, or cause Pool One LLC, Pool One GP, the Facility Owners or Manager to allow, representatives of the Governmental Entity to
inspect the Facilities in connection with the application for any Licenses. 
 Section 9.05 Casualty. In the event
that all or any portion of the Facilities is damaged or destroyed by fire or other casualty prior to Closing and the cost of repair for all such damaged or destroyed Facilities in the aggregate is less than Fifteen Million Dollars ($15,000,000.00),
subject to the terms of the Existing Lease Financing, the Pool One LLC shall (after receipt of MetLife’s approval to the extent required under the Existing Venture Agreement) promptly cause the Facility Owner to undertake such repair and
complete the same, and Transferor shall not have any obligation, direct or indirect, to fund any insurance deductible. Closing will not be extended to permit the Facility Owner to complete the same, but subject to the terms of the Existing Owner
Financing, the insurance proceeds will be escrowed to pay the costs of restoration. In the 

  
 29 

 
event the cost of repair thereof is equal to or greater than Fifteen Million Dollars ($15,000,000.00), New Investor, in its sole discretion, shall either (i) proceed to Closing, in which
event all insurance proceeds attributable to such damage or destruction shall be retained by the Facility Owner at Closing and the amount of any deductible with respect to such damage or destruction shall be paid by SSLII and New Investor or
(ii) as New Investor’s sole and exclusive remedy in such event, terminate this Agreement, in which event the Down Payment shall be promptly returned to New Investor, and SSLII, Transferor, Transferee and New Investor shall be released from
any and all further liabilities or obligations under this Agreement, except those liabilities or obligations that expressly survive such termination. 
 Section 9.06 Condemnation. In the event there is any permanent or temporary actual or threatened taking or condemnation of any material portion of any Facility, SSLII shall notify New Investor
of the same as promptly as commercially practicable, and New Investor shall have the right, at its sole option, (i) to proceed to Closing in which event any and all proceeds of such taking or condemnation shall be delivered or assigned to the
Facility Owner at Closing, or (ii) as New Investor’s sole and exclusive remedy in such event, terminate this Agreement, in which event the Down Payment shall be promptly returned to New Investor, and SSLII, Transferor, Transferee and New
Investor shall be released from any and all further liabilities or obligations under this Agreement, except those liabilities or obligations that expressly survive such termination. 

Section 9.07 Operation of Business: Through the Closing Date, Transferor and SSLII shall cause Manager to continue to manage
and operate the Facilities, taken as a whole, in the ordinary course of business in the manner it has previously managed and operated the Facilities prior to the date of this Agreement. 

Section 9.08 MetLife Consent. The parties acknowledge that the approval of MetLife is required for the transfer of
Transferor’s Interest pursuant to the terms and conditions of the Existing Venture Agreement. Pursuant to that certain Letter Agreement (the “MetLife Letter Agreement”) dated July 7, 2011 between SSLII, Sunrise LP, MetLife
and MetLife Insurance Company of Connecticut (“MICC”), MetLife has agreed to provide such consent (the “MetLife Consent”) on the condition that, among other things, MetLife will have received, on or before the
Closing Date, a Release Agreement in the form attached to the MetLife Letter Agreement among MetLife, MICC, SSLII and certain affiliates of SSLII (the “Mutual Release”). Provided that MetLife and/or MICC are not in default of any of
their obligations under the MetLife Letter Agreement, SSLII shall, and shall cause its affiliates to, execute and deliver the Mutual Release to MetLife and MICC at or prior to Closing. 

Article X. 

CONDITIONS PRECEDENT TO THE OBLIGATION 
 OF NEW INVESTOR, SSLII AND TRANSFEROR TO CLOSE 
 Section 10.01 Conditions
to New Investor’s Obligation to Close. The obligation of New Investor to proceed to Closing is subject to the satisfaction of each of the following conditions, 

  
 30 

 
any of which may be waived, in whole or in part, in writing by New Investor at or prior to Closing: 
 (a) Transferor, SSLII and Transferee shall have performed in all material respects all their respective obligations under this Agreement which are required to be performed at or prior to Closing.

 (b) All representations and warranties of Transferee set forth in Article V of this Agreement, of Transferor set forth
in Article VI of this Agreement and of SSLII set forth in Article VII and Article VIII of this Agreement shall have been true and correct as of the Contract Date and as of the Closing Date with the same force and effect as
though made on and as of the Closing Date. 
 (c) Transferor, SSLII and Transferee shall have executed and/or delivered all of
the documents required to be delivered at Closing pursuant to Section 11.02 (a) and Section 11.02(c), respectively. 
 (d) The MetLife Consent shall have been executed and delivered by MetLife. 
 (e)
The Licenses shall have been issued and shall be in full force and effect, it being understood that this condition shall be deemed satisfied if any License has been issued, but such license is subject to revocation, cancellation, suspension or
non-renewal in the event that post-licensure requirements that have not been satisfied as of Closing are not completed subsequent to Closing. 
 (f) The Existing Owner Financing Modification shall have closed simultaneously with the closing of the transactions contemplated in this Agreement, on substantially the terms and conditions set forth in
the term sheet attached hereto as Exhibit G and such other terms as are customary for similar mortgage financing or otherwise reasonably acceptable to New Investor. 
 Section 10.02 Conditions to Transferor’s Obligation to Close. The obligation of Transferor to proceed to Closing is subject to the satisfaction of each of the following conditions, any of
which may be waived, in whole or in part, in writing by Transferor at or prior to Closing: 
 (a) The MetLife Consent shall have
been executed and delivered by MetLife. 
 (b) The Mutual Release shall have been executed and delivered by all parties thereto
other than MetLife and MICC. 
 Section 10.03 Conditions to SSLII’s and Transferee’s Obligation to Close.
The obligation of SSLII and Transferee to proceed to Closing is subject to the satisfaction of each of the following conditions, any of which may be waived, in whole or in part, in writing by SSLII (for itself and on behalf of Transferee) at or
prior to Closing: 
 (a) New Investor shall have performed in all material respects its obligations under this Agreement which
are required to be performed at or prior to Closing. 

  
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 (b) All representations and warranties of New Investor set forth in Article IV and
Section 3.01(b) of this Agreement shall be true and correct as of the Contract Date and as of Closing with the same force and effect as though made on and as of the Closing Date. 

(c) New Investor shall have executed and delivered all of the documents required to be delivered at Closing pursuant to Sections 11.02
(b). 
 (d) Provided that Transferee and SSLII are not in breach of their obligations under Section 9.04, the Licenses
shall have been issued and shall be in full force and effect, it being understood that this condition shall be deemed satisfied if any License has been issued, but such license is subject to revocation, cancellation, suspension or non-renewal in the
event that post-licensure requirements that have not been satisfied as of Closing are not completed subsequent to Closing. 

(e) The MetLife Consent shall have been executed and delivered by MetLife. 

(f) The Mutual Release shall have been executed and delivered by MetLife and MICC. 

(g) The Existing Owner Financing Modification shall have closed simultaneously with the closing of the transactions contemplated in this
Agreement, on substantially the terms and conditions set forth in the term sheet attached hereto as Exhibit G and such other terms as are customary for similar mortgage financing or otherwise reasonably acceptable to SSLII. 

Article XI. 

CLOSING 

Section 11.01 Time and Place. Closing of Transferor’s assignment of Transferor’s Interest pursuant to this
Agreement (the “Closing”) shall take place at the offices of Willkie Farr & Gallagher LLP in New York City (or at such other place as New Investor, SSLII and Transferor mutually agree) on the Closing Date or such other date
as is mutually agreed upon by Transferor, New Investor and SSLII. 
 Section 11.02 Delivery of Documents at Closing.

 (a) At Closing, Transferor shall: 
 (i) Execute and deliver to Transferee (or its designee) the Assignment and Assumption of Interest Agreement. 
 (ii) Intentionally Omitted. 
 (iii) Provide to Transferee
(A) a copy of the Charter Documents of Transferor certified by a duly authorized officer of Transferor, (B) a copy of resolutions or other actions of the board of directors and shareholders of Transferor certified by a

  
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duly authorized officer of Transferor, and (C) such other evidence of the power and authority of Transferor to consummate the transactions described in this Agreement as Transferee may
reasonably require. 
 (iv) Execute, cause to be acknowledged as appropriate and deliver to Transferee such
additional documents as may be reasonably necessary or customary to consummate the transactions contemplated by this Agreement. 
 (v) Execute, cause to be acknowledged as appropriate and deliver to Transferee a closing statement or memorandum in a form reasonably acceptable to New Investor, Transferee and Transferor (the
“Closing Statement”). 
 (vi) Execute, cause to be acknowledged and deliver to Transferee a
non-foreign status affidavit in the form of Exhibit F, as required by Section 1445 of the Code. 

(vii) Execute or cause to be executed, and cause to be acknowledged and filed, as applicable, any and all transfer tax
forms, or signature pages to transfer tax forms, required by applicable law or advisable, in the reasonable opinion of Transferee, in connection with the transfer of Transferor’s Interests to Transferee (or its designee) as contemplated
hereunder. 
 (viii) Pay and fully satisfy all obligations which are evidenced by any Lien encumbering
Transferor’s Interest, the GP Interest, the Pool One Facility Owner Interest or the GP Facility Owner Interest which are not permitted hereunder. 
 (ix) Execute and deliver the Owner Agreement Terminations (as defined in the Framework Agreement) 
 (x) Execute and deliver the Pooling Agreement Termination (as defined in the Framework Agreement) 
 (xi) Execute, cause to be acknowledged and deliver to the Escrow Holder one or more Transferor’s Non-Imputation Affidavits. 

(xii) If a search of the title to the Transferor’s Interests discloses judgments, penalties or other returns against
other Persons having names the same as or similar to that of Transferor, Transferor will, on request, execute and deliver to Transferee (or cause to be delivered to Transferee) an affidavit from Transferor to the effect that such judgments,
penalties or other returns are not against Transferor. 
 (b) At Closing, New Investor shall: 

(i) Execute, acknowledge and deliver a certificate to SSLII confirming the matters set forth in Sections 10.03(a)
and (b) with respect to New Investor, as of the Closing Date, such certificates to be signed by an officer of New Investor. 

  
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 (ii) Provide to Transferor (A) a copy of the Charter Documents of New
Investor certified by a duly authorized officer or partner of New Investor, (B) a copy of resolutions or other actions of the partners of New Investor certified by a duly authorized officer or partner of New Investor, and (C) such other
evidence of the power and authority of New Investor to consummate the transactions described in this Agreement as Transferor may reasonably require. 
 (iii) Execute, cause to be acknowledged as appropriate and deliver such additional documents as may be reasonably necessary or customary to consummate the transactions contemplated by this Agreement.

 (iv) Execute, cause to be acknowledged as appropriate and deliver the Closing Statement. 

(v) Execute, and cause to be notarized and filed, as applicable, any and all transfer tax forms, or signature pages to
transfer tax forms, required by applicable law or advisable, in the reasonable opinion of Transferee, in connection with the transfer of the Membership Interests or the indirect interests in the Facility Companies to Transferee (or its designee), as
contemplated hereunder. 
 (c) At Closing, SSLII shall: 

(i) Cause Transferee to execute, acknowledge and deliver the Assignment and Assumption of Interest Agreement. 

(ii) Provide to Transferor (A) a copy of the Charter Documents of SSLII certified by a duly authorized officer of New
Investor and a copy of the Charter Documents of Transferee certified by a duly authorized officer or member of Transferee, (B) a copy of resolutions or other actions of the board of directors and shareholders of SSLII certified by a duly
authorized officer of SSLII and a copy of resolutions or other actions of the board of directors or managers and members of Transferee certified by a duly authorized officer or member of Transferee, and (C) such other evidence of the power and
authority of SSLII and Transferee to consummate the transactions described in this Agreement as Transferor may reasonably require. 
 (iii) Execute, cause to be acknowledged as appropriate and deliver such additional documents as may be reasonably necessary or customary to consummate the transactions contemplated by this Agreement.

 (iv) Execute, acknowledge and deliver a certificate to New Investor confirming the matters set forth in
Sections 10.01 (a) and (b) with respect to SSLII, Transferor and Transferee, as of the Closing Date, such certificates to be signed by an officer of SSLII. 

(v) Cause Transferee to execute, acknowledge and deliver the Closing Statement. 

  
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 (vi) Execute, and cause to be notarized and filed, as applicable, any and
all transfer tax forms, or signature pages to transfer tax forms, required by applicable law or advisable, in the reasonable opinion of Transferee (as the case may be), in connection with the transfer of the Transferor’s Interests to Transferee
(or its designee). 
 Section 11.03 Closing Costs. 

(a) Except as otherwise specifically provided in this Agreement, SSLII, New Investor, Transferee and Transferor shall each, as
appropriate, pay the fees and expenses of their own attorneys, accountants, financial advisors, investment bankers and employees. 
 (b) Title insurance costs will be paid by Transferee in accordance with Section 3.02(a). 
 (c) Any transfer taxes, fees or similar charges incurred as a result of the transactions contemplated by this Agreement will be paid by Transferee in accordance with Section 3.02(a).

 Article XII. 
 INDEMNITY; DEFAULT; DAMAGES 
 Section 12.01 Survival. Except for those
representations, warranties, covenants or agreements contained in this Agreement the obligations in relation to which are expressly stated to survive the Closing beyond the below-referenced twelve (12) month period or without time limitation,
all claims for any breach by a party of any representation, warranty, covenant or agreement made by it in this Agreement or in any other Document must be set forth in reasonable detail in a written notice received by such party not later than the
date that is twelve (12) months following the Closing Date and any litigation with respect to such claim shall be commenced on or prior to the date that is sixty (60) days after the expiration of such twelve (12) month period. The
following representations and warranties shall survive without time limit: (a) New Investor’s representations and warranties contained in Sections 4.01 through 4.09, (b) Transferee’s representations and warranties contained in
Sections 5.01 through 5.09, (c) SSLII’s representations and warranties contained in Sections 7.01 through 7.10 and (d) SSLII’s representations and warranties contained in Sections 6.01 through 6.11. 

Section 12.02 New Investor’s Remedies for Transferor’s Defaults. (A) If Transferor breaches any of its
representations and warranties hereunder, or defaults on any of its obligations hereunder in any material respect, in each case caused solely by the indirect or direct actions or inactions of Metlife, and such default continues for ten
(10) Business Days after written notice thereof from New Investor to Transferor specifying such default, including, without limitation, a breach of the obligation to transfer Transferor’s Interest on the Closing Date, time being of the
essence, New Investor may, as its and Transferee’s sole remedy hereunder, by delivering notice in writing to Transferor in the manner provide in this Agreement, either (i) terminate this Agreement and the other Documents and declare it and
them null and void (except for those Liabilities that expressly survive such termination) and New Investor shall receive a disbursement of the Down Payment, (ii) seek enforcement of this Agreement by a decree of specific performance or
injunctive relief requiring Transferor to fulfill its obligations under this 

  
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Agreement, including but not limited to the transfer of Transferor’s Interest or (iii) waive any such conditions or defaults and consummate the transactions contemplated by this
Agreement and the Documents in the same manner as if there had been no conditions or defaults without any further claim against Transferor and (B) if Transferor breaches any of its representations and warranties hereunder, or defaults on any of
its obligations hereunder in any material respect, in each case to the extent caused by the indirect or direct actions or inactions of SSLII, Manager or any Affiliate of SSLII or Manager (provided that MetLife or MICC shall not be considered
Affiliates of SSLII or Manager), and such default continues for ten (10) Business Days after written notice thereof from New Investor to Transferor specifying such default, including, without limitation, a breach of the obligation to transfer
Transferor’s Interest on the Closing Date, time being of the essence, New Investor may, as its and Transferee’s sole remedy hereunder, by delivering notice in writing to Transferor in the manner provide in this Agreement, either
(i) terminate this Agreement and the other Documents and declare it and them null and void (except for those Liabilities that expressly survive such termination) and New Investor shall receive a disbursement of the Down Payment and be entitled
to recovery from SSLII of New Investor’s out-of-pocket costs and expenses incurred in connection with the transactions contemplated under this Agreement and the Framework Agreement (including, without limitation, reasonable attorneys fees and
costs), (ii) seek enforcement of this Agreement by a decree of specific performance or injunctive relief requiring Transferor to fulfill its obligations under this Agreement, including but not limited to the transfer of Transferor’s
Interest or (iii) waive any such conditions or defaults and consummate the transactions contemplated by this Agreement and the Documents in the same manner as if there had been no conditions or defaults without any further claim against
Transferor. 
 Section 12.03 New Investor’s Remedies for SSLII’s or Transferee’s Defaults. If SSLII
or Transferee breaches any of their respective representations or warranties hereunder, or defaults on any of their respective obligations hereunder in any material respect, and such default continues for ten (10) Business Days after written
notice thereof from New Investor specifying such default, New Investor may, as its sole remedy hereunder, by delivering notice in writing to SSLII and Transferee in the manner provided in this Agreement, either, (i) terminate this Agreement and
the other Documents and declare it and them null and void (except for those Liabilities that expressly survive such termination) in which event New Investor shall receive a disbursement of the Down Payment or (ii) waive any such conditions or
defaults and consummate the transactions contemplated by this Agreement and the Documents in the same manner as if there had been no conditions or defaults. The foregoing in no way affects, limits or otherwise impairs any remedies of New Investor
against SSLII under the Framework Agreement. 
 Section 12.04 Transferor’s, SSLII’s and Transferee’s
Remedies for New Investor’s Defaults. If New Investor breaches any of its representations or warranties hereunder, or defaults on any of its obligations hereunder in any material respect, and such default continues for ten
(10) Business Days after written notice thereof from SSLII or Transferor specifying such default, SSLII, Transferor and Transferee may, as their sole remedy hereunder, by delivering notice in writing to New Investor in the manner provided in
this Agreement, either, (i) terminate this Agreement and the other Documents and declare it and them null and void (except for those Liabilities that expressly survive such termination), in which event Transferor shall retain the Down Payment
as liquidated damages as the sole legal or equitable remedy, the parties hereby acknowledging and agreeing that the damages which SSLII, Transferor and Transferee would 

  
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suffer as a result of such default and termination would be difficult, if not impossible, to determine and that the liquidated damages provided for herein are a fair and reasonable estimation of
such damages or (ii) waive any such conditions or defaults and consummate the transactions contemplated by this Agreement and the Documents in the same manner as if there had been no conditions or defaults; it being expressly understood and
agreed that neither SSLII, Transferee nor Transferor shall have any right or remedy to seek specific performance or injunctive relief with respect to any default by New Investor. The foregoing in no way affects, limits or otherwise impairs any
remedies of SSLII against New Investor under the Framework Agreement. 
 Section 12.05 Limitation on Liability for
Business Representations. Notwithstanding anything to the contrary contained herein or in any other Document, if the Closing of the transactions hereunder shall have occurred, SSLII shall have no Liability to New Investor for the breach of the
Business Representations in excess of, individually or in the aggregate, Three Million Dollars ($3,000,000.00)] (the “Business Representations Damage Cap”). New Investor shall not enter any judgment or collect an amount hereunder in
excess of the Business Representations Damage Cap. 
 Section 12.06 Transferor not Liable for Representations of Other
Parties. Notwithstanding anything to the contrary contained herein or in any document executed in connection herewith, Transferor shall not be responsible for, or have any liability with respect to, any representation or warranty of SSLII or
Manager, whether made pursuant to this Agreement or otherwise, any of the other Documents, or otherwise. 
 Section 12.07
Indemnification by New Investor. New Investor shall, during the applicable survival period, indemnify, defend, and hold harmless SSLII, Transferee and Transferor and their respective members, officers, directors, employees, Affiliates,
successors and assigns from and against, and pay or reimburse each of them for and with respect to, any Loss relating to, arising out of or resulting from any breach by New Investor of any of its representations, warranties, covenants or agreements
in this Agreement or any other Document. 
 Section 12.08 Intentionally Omitted. 

Section 12.09 Indemnification by SSLII. SSLII shall, during the applicable survival period, indemnify, defend, and hold
harmless Transferee and New Investor and their respective members, officers, directors, employees, Affiliates, successors and assigns from and against, and pay or reimburse each of them for and with respect to, any Loss relating to, arising out of,
or resulting from any breach by SSLII or Transferor of any of their representations, warranties, covenants or agreements in this Agreement or any other Document, subject to the Business Representations Damage Cap with respect to breaches of the
Business Representations. 
 Section 12.10 Indemnification by Transferee and SSLII. Transferee and SSLII, jointly
and severally, shall, during the applicable survival period, indemnify, defend, and hold harmless Transferor and its members, officers, directors, employees, Affiliates, successors and assigns from and against, and pay or reimburse each of them for
and with respect to, any Loss relating to, arising out of, or resulting from any breach by Transferee of any of its representations, warranties, covenants or agreements in this Agreement or any other Document. 

  
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 Section 12.11 Administration of Indemnification. For purposes of administering
the indemnification provisions set forth in Sections 12.07, 12.09 and 12.10, the following procedure shall apply: 
 (a)
Whenever a claim shall arise for indemnification under this Article, the party entitled to indemnification (the “Indemnified Party”) shall promptly give written notice to the party from whom indemnification is sought (the
“Indemnifying Party”) setting forth in reasonable detail, to the extent then available, the facts concerning the nature of such claim and the basis upon which the Indemnified Party believes that it is entitled to indemnification
hereunder. 
 (b) In the event of any claim for indemnification resulting from or in connection with any claim by a third party,
the Indemnifying Party shall be entitled, at its sole expense, either (i) to participate in defending against such claim or (ii) to assume the entire defense with counsel which is selected by it and which is reasonably satisfactory to the
Indemnified Party provided that (A) the Indemnifying Party agrees in writing that it does not and will not contest its responsibility for indemnifying the Indemnified Party in respect of such claim or proceeding and (B) no settlement shall
be made and no judgment consented to without the prior written consent of the Indemnified Party which shall not be unreasonably withheld. If, however, (i) the claim, action, suit or proceeding would, if successful, result in the imposition of
damages for which the Indemnifying Party would not be solely responsible, or (ii) representation of both parties by the same counsel would otherwise be inappropriate due to actual or potential differing interests between them, then the
Indemnifying Party shall not be entitled to assume the entire defense and each party shall be entitled to retain counsel who shall cooperate with one another in defending against such claim. In the case of clause (i) of the immediately
preceding sentence, the Indemnifying Party shall be obligated to bear only that portion of the expense of the Indemnified Party’s counsel that is in proportion to the damages indemnifiable by the Indemnifying Party compared to the total amount
of the third-party claim against the Indemnified Party. 
 (c) If the Indemnifying Party does not choose to defend against a
claim by a third party, the Indemnified Party may defend in such manner as it deems appropriate or settle the claim (after giving notice thereof to the Indemnifying Party) on such terms as the Indemnified Party may deem appropriate, and the
Indemnified Party shall be entitled to periodic reimbursement of defense expenses incurred and prompt indemnification from the Indemnifying Party in accordance with this Article. 

(d) Failure or delay by an Indemnified Party to give prompt notice of any claim (if given prior to expiration of any applicable survival
period) shall not release, waive or otherwise affect an Indemnifying Party’s obligations with respect to the claim, except to the extent that the Indemnifying Party can demonstrate actual loss or prejudice as a result of such failure or delay.

 Section 12.12 Exclusivity. The rights and remedies set forth in this Article XII shall be exclusive of all
other rights to monetary damages that any party (or any party’s successors or assigns) would otherwise have at law or in equity in connection with the transactions 

  
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contemplated by this Agreement or any other Document, other than with respect to claims based on common law fraud or rights which by law cannot be waived or limited. 

Article XIII. 

DOWN PAYMENT AND ESCROW 
 Section 13.01 Investment of Down Payment. Escrow Agent shall deposit the Down Payment in an escrow account in the name of Escrow Agent in a commercial bank designated by New Investor, provided
that New Investor approves Wells Fargo, Bank of America, or JP Morgan Chase as such commercial bank. Escrow Agent shall invest the Down Payment in an insured interest bearing account, or in interest bearing investments backed by securities issued by
the U.S. federal government, as New Investor may from time to time direct. 
 Section 13.02 Disbursement of Down
Payment. Escrow Agent shall hold the Down Payment in escrow and release the same as follows: 
 (a) If at any time prior to
expiration of the Due Diligence Period, Escrow Agent shall receive written notice from New Investor stating that (i) New Investor is terminating this Agreement, and (ii) New Investor is simultaneously giving Transferor and SSLII a copy of
such notice, Escrow Agent shall promptly disburse the Down Payment to New Investor without the need for further instructions from or approvals by any other party to this Agreement. 

(b) If at any time after the expiration of the Due Diligence Period, but prior to Closing, Escrow Agent shall receive written notice from
New Investor stating that (i) New Investor is terminating this Agreement for a reason other than a Transferor default, an SSLII default or another reason which would permit New Investor to receive the Down Payment, and (ii) New Investor or
SSLII, as applicable, is simultaneously giving Seller a copy of such notice, Escrow Agent shall promptly disburse the Down Payment to Transferor, without the need for further instructions from or approvals by any other party to this Agreement.

 (c) Except as provided in Section 13.02(f), if Escrow Agent shall receive written notice from New Investor
(“Transferor Default Notice”) stating that (i) Transferor has failed to complete Closing in accordance with the terms of this Agreement, or has defaulted in any other manner under this Agreement, (ii) Transferor has not
cured such failure or default in accordance with Section 12.02, and (iii) New Investor is demanding the return of the Down Payment, then Escrow Agent shall immediately and simultaneously deliver a copy of the Transferor Default Notice to
Transferor and SSLII. If on or before the date which is five (5) Business Days following Transferor’s receipt of the Transferor Default Notice, Transferor shall object in writing (“Transferor’s Objection Notice”) to
the return of the Down Payment to New Investor, then Escrow Agent shall not return the Down Payment to New Investor. If Transferor shall not deliver a Transferor’s Objection Notice to Escrow Agent on or before the date which is five
(5) Business Days following Transferor’s receipt of the Transferor Default Notice, then Escrow Agent shall promptly return the Down Payment to New Investor without the need for further instructions from or approvals by any other party to
this Agreement. 
 (d) Except as provided in Section 13.02(f), if Escrow Agent shall receive written notice from New
Investor (“Transferee Default Notice”) stating that (i) Transferee or 

  
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SSLII has failed to complete Closing in accordance with the terms of this Agreement, or has defaulted in any other manner under this Agreement, (ii) Transferee or SSLII has not cured such
failure or default in accordance with Section 12.03, and (iii) New Investor is demanding the return of the Down Payment, then Escrow Agent shall immediately and simultaneously deliver a copy of the Transferee Default Notice to Transferee
and SSLII. If on or before the date which is five (5) Business Days following Transferee’s and SSLII’s receipt of the Transferee Default Notice, Transferee or SSLII shall object in writing (“Transferee’s Objection
Notice”) to the return of the Down Payment to New Investor, then Escrow Agent shall not return the Down Payment to New Investor. If Transferee or SSLII shall not deliver a Transferee’s Objection Notice to Escrow Agent on or before the
date which is five (5) Business Days following Transferee’s or SSLII’s receipt of the Transferee Default Notice, then Escrow Agent shall promptly return the Down Payment to New Investor without the need for further instructions from
or approvals by any other party to this Agreement. 
 (e) Except as provided in Section 13.02(f), if Escrow Agent shall
receive a written notice from Transferor, Transferee or SSLII (“New Investor Default Notice”) stating that (i) New Investor has failed to complete Closing in accordance with the terms of the Purchase Agreement, or has defaulted
in any other manner under this Agreement, (ii) New Investor, as applicable, has not cured such failure or default in accordance with Section 12.04, as applicable, and (iii) Transferor, Transferee or SSLII is demanding the release of
the Down Payment to Transferor, Escrow Agent shall promptly deliver a copy of the New Investor Default Notice to New Investor. If on or before the date which is five (5) Business Days following New Investor’s receipt of the New Investor
Default Notice, New Investor shall object in writing (“New Investor’s Objection Notice”) to the release of the Down Payment to Transferor, then Escrow Agent shall not release the Down Payment to Transferor. If New Investor
shall not deliver a Transferee’s Objection Notice to Escrow Agent on or before the date which is five (5) Business Days following New Investor’s receipt of the New Investor Default Notice, then Escrow Agent shall promptly release the
Down Payment to Transferor, without the need for further instructions from or approvals by any other party to this Agreement. 

(f) If Escrow Agent shall receive written notice from New Investor or SSLII (“Failure of Condition Notice”) stating that
(i) New Investor has failed to complete Closing in accordance with the terms of this Agreement solely due to a failure of the conditions set forth in Section 10.01(d), (e) or (f) or (ii) Transferee and SSLII have
failed to complete Closing in accordance with the terms of this Agreement solely due to a failure of the condition set forth in Section 10.03(d), (e), (f) or (g) and confirming that Transferee and SSLII are not in breach of
their obligations under Section 9.04 or Section 9.08, then Escrow Agent shall immediately deliver a copy of the Failure of Condition Notice to Transferor. If on or before the date which is five (5) Business Days
following Seller’s receipt of the Failure of Condition Notice, Transferor shall object in writing (“Transferor’s Failure of Condition Objection Notice”) to the return of the Down Payment to New Investor, then Escrow Agent
shall not return the Down Payment to New Investor. If Transferor shall not deliver a Transferor’s Failure of Condition Notice to Escrow Agent on or before the date which is five (5) Business Days following Transferor’s receipt of the
Failure of Condition Notice, then Escrow Agent shall promptly return the Down Payment to New Investor, without the need for further instructions from or approvals by any other party to this Agreement. 

  
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 (g) Unless the Down Payment shall have been previously released by Escrow Agent pursuant to
this Section 13.02, at Closing, Escrow Agent shall deliver the Down Payment to Transferee as part of the CNL Contribution. 

Section 13.03 Disputes. In the event of any dispute between Transferor, SSLII and New Investor regarding the disbursement of
the Down Payment pursuant to Sections 13.02(c) or (d), or in the event Escrow Agent shall receive conflicting demands or instructions with respect to the disbursement of the Down Payment, Escrow Agent shall withhold disbursement of the Down Payment
until it receives either (i) joint written instructions from Transferor, SSLII and New Investor (or, with respect to a dispute among only SSLII and New Investor, then joint written instructions from SSLII and New Investor) with respect to the
disbursement of the Down Payment or (ii) an order binding upon it from a court of competent jurisdiction with respect to the disbursement of the Down Payment. Notwithstanding the foregoing, in the event of any such dispute or conflicting
demands or instructions, Escrow Agent shall have the right to deliver the Down Payment into the registry of any court of competent jurisdiction, and Escrow Agent shall thereupon be released from any further liabilities or obligations with respect to
the Down Payment. 
 Section 13.04 Compensation. Escrow Agent shall receive no compensation for its services
performed pursuant to this Agreement except for reasonable attorneys’ fees and costs incurred as a result of any dispute between the parties hereto. Such fees and costs shall be borne by the party adjudged by a court of competent jurisdiction
to have been at fault. 
 Section 13.05 Liability of Escrow Agent. The parties covenant and agree that in performing
any of its duties under this Agreement, Escrow Agent shall not be liable for any Loss which it may incur as a result of serving as Escrow Agent hereunder, except for any Loss arising out of its willful default or gross negligence. Accordingly,
Escrow Agent shall not incur any liability with respect to (i) any action taken or omitted to be taken in good faith upon advice of its counsel given with respect to any questions relating to its duties and responsibilities (ii) to any
action taken or omitted to be taken in reliance upon any document, not only as to its due execution and the validity and effectiveness of its provisions, but also to the truth and accuracy of any information contained therein, which Escrow Agent
shall in good faith believe to be genuine, to have been signed or presented by a proper person or persons and to conform with the provisions of this Agreement or (iii) failure, insolvency, or inability of the depositary to pay said funds upon
demand for withdrawal; or (iv) levies by taxing authorities based upon the taxpayer identification number used to establish this interest bearing account. Transferor, Transferee, SSLII and New Investor hereby agree, jointly and severally, to
indemnify and hold harmless Escrow Agent against any and all Losses which may be imposed upon or incurred by Escrow Agent in connection with its serving as Escrow Agent hereunder, except for any Loss arising out of its willful default or gross
negligence. 
 Article XIV. 
 MISCELLANEOUS 
 Section 14.01 Further Actions. From time to time
before, at and after the Closing, each party, at its expense and without further consideration, will execute and deliver such documents 

  
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as reasonably requested by any other party in order more effectively to consummate the transactions contemplated hereby. 
 Section 14.02 Consents under Existing Venture Agreement. The parties acknowledge that the transactions contemplated hereunder may require the consent of SSLII (in addition to the MetLife
Consent) in accordance with the terms of the Existing Venture Agreement, and the execution and delivery by SSLII of this Agreement shall evidence any such required consent from SSLII. 

Section 14.03 Notices. All notices, demands or other communications given hereunder shall be in writing and shall be
sufficiently given if delivered by courier (including overnight delivery service) or sent by registered or certified mail, first class, postage prepaid, or by electronic mail or facsimile (provided that an additional copy is delivered by one
of the foregoing methods), addressed as follows: 
 (a) If to Transferor, Transferee or SSLII, to: 

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

Attn.: General Counsel 
 Telecopy No.: (703) 744-1990 
 Telephone No.: (703) 854-0334 

with a copy to: 

Willkie Farr & Gallagher LLP 
 787 Seventh Avenue 
 New York, New York 10019 

Attn.: Eugene A. Pinover, Esq. 
 Telecopy No.: (212) 728-9254 
 Telephone No.: (212) 728-8254 

(b) If to New Investor, to: 
 CNL Income Partners, LP 
 CNL Center at City Commons 

450 South Orange Avenue 
 Orlando, Florida 32801 
 Attn.: Holly Greer, SVP and General Counsel; and

   Joseph T. Johnson, SVP and Chief Accounting Officer 

Telecopy No.: (407) 540-2544 
 Telephone No.: (407) 540-7546 [Greer] 
 (407) 540-7618
[Johnson] 
 with a copy to: 

  
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 Lowndes, Drosdick, Doster, Kantor & Reed, PA 

215 North Eola Drive 
 Orlando, Florida 32801 
 Attn.: Peter Luis Lopez, Esq. 

Telecopy No.: 407-843-4444 
 Telephone No.: 407-418-6277 
 or such other address as a party may from time to time notify the
other party in writing (as provided above). Any such notice, demand or communication shall be deemed to have been given (i) if so mailed, as of the close of the fifth Business Day following the date so mailed, (ii) if delivered by courier,
on the date received and (iii) if sent by facsimile, on the date transmitted if during normal business hours of the recipient, and otherwise on the next Business Day of the recipient, in each case as evidenced by receipt by the sending party of
electronic confirmation of successful transmission form the receiving party’s facsimile machine. 
 Section 14.04
Entire Agreement. This Agreement, the Exhibits and the other Documents contain the entire understanding among the parties with respect to the subject matter hereof and are intended to be a full integration of all prior or contemporaneous
agreements, conditions or undertakings among the parties hereto. There are no promises, agreements, conditions, undertakings, warranties or representations, oral or written, express or implied, among the parties with respect to the subject matter
hereof other than as set forth in this Agreement and the Exhibits and other Documents. 
 Section 14.05 Not Construed
Against Drafter. This Agreement has been negotiated and prepared by the parties and their respective counsel, and should any provision of this Agreement require judicial interpretation, the court interpreting or construing the provision shall
not apply the rule of construction that a document is to be construed more strictly against one party. 
 Section 14.06
Binding Effect; Benefits. Except as otherwise provided herein, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors or permitted assigns. Except to the extent specified herein,
nothing in this Agreement, express or implied, shall confer on any person other than the parties hereto and their respective successors or permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 Section 14.07 Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder may be
assigned by any party without the prior written consent of the other parties, provided that SSLII, New Investor or Transferee may assign all of their respective rights under this Agreement to an Affiliate, provided further that
(i) the respective representations and warranties of Transferee, SSLII or New Investor hereunder shall be true and correct in all material respects as applied to the applicable assignee, (ii) both Transferee, SSLII or New Investor, as
applicable, and the assignee shall execute and deliver to the other parties hereto a written instrument in form and substance satisfactory to such parties, in their reasonable discretion, in which both Transferee, SSLII or New Investor, as
applicable, and the assignee agree to be jointly and severally liable for performance of all of the applicable assignee’s obligations under this Agreement, (iii) Transferee, New Investor or SSLII, as applicable, and the

  
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assignee shall deliver such other documents and instruments as reasonably requested by the other parties hereto, including appropriate certified resolutions of the members or boards of directors
of Transferee, SSLII or New Investor, as applicable, and the assignee and (iv) Transferee, New Investor and SSLII, as applicable, shall remain fully liable for its obligations under this Agreement. 

Section 14.08 Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of
the State of Delaware without regard to its principles of conflicts of laws. 
 Section 14.09 Amendments and
Waivers. No term or provision of this Agreement may be amended, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against whom the enforcement of such amendment, waiver, discharge or termination is
sought. Any waiver shall be effective only in accordance with its express terms and conditions. 
 Section 14.10
Severability. Any provision of this Agreement which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof, and any such
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the parties hereto hereby waive any provision of law now or hereafter in effect
which renders any provision hereof unenforceable in any respect. 
 Section 14.11 Headings. The captions in this
Agreement are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 

Section 14.12 Counterparts. This Agreement may be executed in any number of counterparts, and by any party on separate
counterparts, each of which shall be an original, and all of which together shall constitute one and the same instrument. 

Section 14.13 References. All references in this Agreement to Articles and Sections are to Articles and Sections contained in
this Agreement unless a different document is expressly specified. 
 Section 14.14 Exhibits. Unless otherwise
specified herein, each Exhibit referred to in this Agreement is attached hereto, and each such Exhibit (other than Exhibits that are to be separately executed and delivered as Documents) is hereby incorporated by reference and made a part hereof as
if fully set forth herein. 
 Section 14.15 Attorneys’ Fees. In the event any party brings an action to enforce
or interpret any of the provisions of this Agreement, the “prevailing party” in such action shall, in addition to any other recovery, be entitled to its reasonable attorneys’ fees and expenses arising from such action and any appeal
or any bankruptcy action related thereto, whether or not such matter proceeds to court. For purposes of this Agreement, “prevailing party” shall mean, in the case of a Person asserting a claim, such Person is successful in obtaining
substantially all of the relief sought, and in the case of a Person defending against or responding to a claim, such Person is successful in denying substantially all of the relief sought. 

  
 44 

 Section 14.16 Waiver of Jury Trial. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN
ANY PROCEEDINGS BROUGHT BY ANY OTHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE TRANSACTION, THIS AGREEMENT, SELLER’S INTEREST, THE FACILITIES OR THE RELATIONSHIP OF THE PARTIES HEREUNDER. THE PROVISIONS
OF THIS SECTION SHALL SURVIVE THE CLOSING (AND NOT BE MERGED THEREIN) OR ANY EARLIER TERMINATION OF THIS AGREEMENT. 

Section 14.17 Facsimile and PDF Signatures. Signatures to this Agreement transmitted by telecopy or by electronic mail in PDF
format shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver an execution original to this Agreement with its actual signature to the other parties, but a failure to do so shall not affect the
enforceability of this Agreement, it being expressly agreed that each party to this Agreement shall be bound by its own telecopied signature or signature transmitted by electronic mail in PDF format and shall accept the telecopied signature or
signature transmitted by electronic mail in PDF format of each other party to this Agreement. 
 [SIGNATURES FOLLOW ON NEXT PAGE]

  
 45 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as
of the date first written above. 
  

			
	TRANSFEREE:
	
	CNLSUN PARTNERS II, LLC, a Delaware limited liability company
		
	By:	 	Sunrise Senior Living Investments, Inc., a Virginia corporation, its managing member
		
	By:	 	 /s/ Edward W. Burnett

	Name:	 	Edward W. Burnett
	Title:	 	Vice President
	
	TRANSFEROR:
	
	MASTER METSUN TWO LP, a Delaware limited partnership
		
	By:	 	Master MetSun Two GP, LLC, its general partner
		
	By:	 	Sunrise Senior Living Investments, Inc., its sole member
		
	By:	 	 /s/ Edward W. Burnett

	Name:	 	Edward W. Burnett
	Title:	 	Vice President
	
	SSLII
	
	SUNRISE SENIOR LIVING INVESTMENTS, INC., a Virginia corporation
		
	By:	 	 /s/ Edward W. Burnett

	Name:	 	Edward W. Burnett
	Title:	 	Vice President

 [Signatures continue on following page] 

					
	NEW INVESTOR
	
	CNL INCOME PARTNERS, LP, a Delaware limited partnership
		
	By:	 	CNL Income GP Corp., a Delaware corporation, its general partner
			
		 	By:	 	 /s/ Kay S. Redlich

		 	Name:	 	Kay S. Redlich
		 	Title:	 	Senior Vice President

			
	Executed for the purpose of acknowledging and
agreeing to the obligations of the Escrow Agent
hereunder:
	
	ESCROW AGENT
	
	FIRST AMERICAN TITLE INSURANCE COMPANY
		
	By:	 	 /s/ Keren Baki Marti

	Name:	 	Keren Baki Marti
	Title:	 	Vice President & Orlando NCS Operations Manager

 Exhibit A 
 Facilities; Facility Owners 
  

					
	FACILITY OWNER	  	FACILITY	  	 
			
	MetSun Two Bloomfield South MI Senior Living, LLC	  	Sunrise of Bloomfield Hills	  	
			
	MetSun Two Broomfield CO Senior Living, LLC	  	Sunrise of Broomfield	  	
			
	Sunrise Wake County NC Senior Living, LLC	  	Sunrise of Cary	  	
			
	Sunrise Johns Creek GA Senior Living, LLC	  	Sunrise of Johns Creek	  	
			
	MetSun Two McCandless PA Senior Living, LP	  	Sunrise of McCandless	  	
			
	MetSun Two Simi Valley CA Senior Living, LP	  	Sunrise of Simi Valley	  	

 Exhibit B 
 Form of Assignment and Assumption of Interest Agreement 
 ASSIGNMENT
AND ASSUMPTION OF INTEREST 
 THIS ASSIGNMENT AND ASSUMPTION OF INTEREST (this “Assignment”) is made as of
                 , 201    , between MASTER METSUN TWO, LP, a Delaware limited partnership, a (“Assignor”) and
[                    ], a Delaware limited liability company (“Assignee”). 

RECITALS: 
  

	1.	As of the date hereof, Assignor is the owner of a 100% membership interest (the “Interest”) in MetSun Two Pool One, LLC (the
“Company”). The Company is governed by that certain [                    ] dated as of
[            ] (the “Operating Agreement”). 

  

	2.	Pursuant to that certain Transfer Agreement among Assignor, Assignee, Sunrise Senior Living Investments, Inc. (“SSLII”) and CNL Income Partners, LP,
dated as of                  , 2011 (the “Transfer Agreement”), Assignor desires to assign to Assignee the Interest, including all rights,
responsibilities and obligations of Assignor in, to and under the Operating Agreement. 

  

	3.	Pursuant to the Transfer Agreement, Assignee desires to accept an assignment of Assignor’s Interest and to assume of all of Assignor’s rights,
responsibilities and obligations in, to and under the Operating Agreement. 

 NOW, THEREFORE, in
consideration of the foregoing premises, of the mutual covenants set forth in this Assignment, and of other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Assignor and Assignee agree as follows: 

 

	 	1.	Assignment and Assumption of Interest. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest in, to and
under the Interest. Assignee hereby accepts the Interest and hereby assumes and agrees to be bound by all of the obligations, duties and liabilities of Assignor with respect to the Interest and under the Operating Agreement. This assignment is made
without representation, warranty or indemnity except as expressly set forth in the Transfer Agreement. 

  

	 	2.	 Withdrawal and Substitution. By reason of the assignment effected pursuant to Section 1 hereof, (i) Assignee is hereby entitled to
exercise all rights, powers and privileges and is hereby obligated to perform all of the duties and obligations that may hereinafter exist in relation to the Interest, (ii) Assignor hereby fully and completely withdraws from the Company as a
member and Assignee is hereby admitted to the 

  
 - 7 -

	 	 
Company as a substitute member and (iii) Assignor shall not have any further rights, powers, privileges, duties and/or obligations with respect to the Interest. 

 

	 	3.	Miscellaneous. 

 i. The
obligations of the parties hereto shall be continuing, absolute and unconditional and shall remain in full force and effect. 

ii. Promptly upon request of any other party, each party hereto shall execute and deliver such further assurances and take such further
actions as may be reasonably required or appropriate to perfect the assignment and assumption of the Interest and otherwise carry out the intent and purpose of this Assignment. 

iii. This Assignment shall be binding upon and inure to the benefit of Assignor, Assignee, the Company, and their respective successors
and assigns. 
 iv. Each of the parties hereto hereby waives any right to jury trial in the event any party files an action
relating to this Assignment. 
 v. This Assignment may be executed in any number of counterparts which, when taken together,
shall constitute a single binding instrument. Signatures to this Assignment transmitted by telecopy or by electronic mail in PDF format shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver an execution
original to this Assignment with its actual signature to the other parties, but a failure to do so shall not affect the enforceability of this Assignment, it being expressly agreed that each party to this Assignment shall be bound by its own
telecopied signature or signature transmitted by electronic mail in PDF format and shall accept the telecopied signature or signature transmitted by electronic mail in PDF format of each other party to this Assignment. 

 

	 	4.	Interpretation. 

 i. This
Assignment shall be governed by and construed in accordance with the laws of the State of Delaware (without reference to conflicts of laws principles). 
 ii. Captions, numbering and headings of Sections in this Assignment are for convenience of reference only and shall not be considered in the interpretation of this Assignment. 

iii. Whenever required by the context, the singular shall include the plural, the neuter gender shall include the male gender and female
gender, and vice versa. 

  
 - 8 -

 iv. No modification of this Assignment shall be valid or effective unless the same is in
writing and signed by the parties hereto. No purported waiver of any of the provisions of this Assignment shall be valid or effective unless the same is in writing and signed by the party against whom it is sought to be enforced. 

v. This Assignment has been negotiated and prepared by the parties and their respective attorneys and, should any provision of this
Assignment require judicial interpretation, the court interpreting or construing such provision shall not apply the rule of construction that a document is to be construed more strictly against one party. 

  
 - 9 -

 IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first
above written. 
  

			
	ASSIGNEE:
	
	[                            
            ]
		
	By:	 	  

		
	Name:	 	
		
	Title:	 	
	
	ASSIGNOR:
	
	MASTER METSUN TWO, LP
	
	By: Master MetSun Two GP, LLC, its general partner
	
	By: Sunrise Senior Living Investments, Inc., its sole member
		
	By:	 	  

		
	Name:	 	
		
	Title:	 	

  
 iii

 Exhibit C 
 Disclosure Statement 

  
 iv 

 Exhibit D 
 Non-Imputation Affidavit 

  
 v 

 Exhibit E 
 Rent Roll 

  
 vi 

 Exhibit F 
 Non-Foreign Status Affidavit 
 CERTIFICATION OF NON-FOREIGN STATUS

 Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. To inform the transferee, [                    ], a Delaware limited liability company
(“Transferee”), that withholding of tax is not required upon the disposition of a U.S. real property interest by MASTER METSUN TWO, LP, a Delaware limited partnership (“Transferor”), the undersigned
hereby certifies to Transferee the following on behalf of Transferor: 
 1. Transferor is not a foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations). 
 2. The employer identification number of Transferor is [            ] 
 3. Transferor has an office address of c/o [                    ] 

Transferor understands that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false
statement contained herein could be punished by fine, imprisonment, or both. 
 Under penalties of perjury I declare that I
have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Transferor. 

 

			
	
	MASTER METSUN TWO, LP
	
	By: Master MetSun Two GP, LLC, its general partner
	
	By: Sunrise Senior Living Investments, Inc., its sole member
		
	By	 	  

		 	Name:
		 	Title:

  
 vii

					
	 Sworn to and subscribed before me

this     day of             ,
201  

		
	  
 Notary Public
	 	

			
		
	My Commission Expires:	 	  

  
 viii

 Exhibit G 
 Existing Loan Modification Term Sheet 

  
 ix

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