Document:

Transfer Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 TRANSFER AGREEMENT 

by and among 

GCI DEVELOPMENT, LLC, 
 an Iowa limited liability company, 
 and 

CHT PARTNERS, LP, 

a Delaware limited partnership 
 August 31, 2012 

 TABLE OF CONTENTS 

 

							
	 Article I. INTERPRETATION
	  	 	4	  
			
	 Section 1.01
	 	Defined Terms	  	 	4	  
	 Section 1.02
	 	Additional Defined Terms	  	 	9	  
	 Section 1.03
	 	Exhibits	  	 	10	  
		
	 Article II. AGREEMENT TO TRANSFER THE OWNED ASSETS
	  	 	11	  
			
	 Section 2.01
	 	Transfer of Interests	  	 	11	  
	 Section 2.02
	 	Owned Assets	  	 	11	  
	 Section 2.03
	 	Operating Cash	  	 	13	  
	 Section 2.04
	 	Down Payment	  	 	13	  
		
	 Article III. DUE DILIGENCE
	  	 	13	  
			
	 Section 3.01
	 	Investigation of Facilities	  	 	13	  
	 Section 3.02
	 	Title	  	 	15	  
	 Section 3.03
	 	Satisfaction of Conditions Precedent	  	 	15	  
		
	 Article IV. REPRESENTATIONS AND WARRANTIES OF TRANSFEREE
	  	 	15	  
			
	 Section 4.01
	 	Organization, Good Standing and Entity Authority	  	 	15	  
	 Section 4.02
	 	Authorization and Binding Effect of Documents	  	 	15	  
	 Section 4.03
	 	ERISA	  	 	16	  
	 Section 4.04
	 	Absence of Conflicts	  	 	16	  
	 Section 4.05
	 	Consents	  	 	16	  
	 Section 4.06
	 	Broker’s or Finder’s Fees	  	 	17	  
	 Section 4.07
	 	No Judgments	  	 	17	  
	 Section 4.08
	 	No Insolvency	  	 	17	  
	 Section 4.09
	 	Specially Designated National or Blocked Person	  	 	17	  
		
	 Article V. INTENTIONALLY OMITTED
	  	 	18	  
		
	 Article VI. INTENTIONALLY OMITTED
	  	 	18	  
		
	 Article VII. REPRESENTATIONS AND WARRANTIES OF TRANSFEROR
	  	 	18	  
			
	 Section 7.01
	 	Organization, Good Standing, Entity Authority and Qualification	  	 	18	  
	 Section 7.02
	 	Authorization and Binding Effect of Documents	  	 	18	  
	 Section 7.03
	 	Absence of Conflicts	  	 	18	  
	 Section 7.04
	 	Consents	  	 	19	  
	 Section 7.05
	 	Broker’s or Finder’s Fees	  	 	19	  
	 Section 7.06
	 	ERISA	  	 	19	  
	 Section 7.07
	 	Ownership of Owned Assets	  	 	19	  
	 Section 7.08
	 	No Judgments	  	 	20	  
	 Section 7.09
	 	No Governmental Approvals	  	 	20	  
	 Section 7.10
	 	No Insolvency	  	 	20	  

  
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	 Article VIII. BUSINESS REPRESENTATIONS
	  	 	21	  
			
	 Section 8.01
	 	Financial Statements; No Undisclosed Liabilities; Absence of Certain Changes	  	 	21	  
	 Section 8.02
	 	Books and Records; Internal Controls	  	 	22	  
	 Section 8.03
	 	Obligations	  	 	22	  
	 Section 8.04
	 	Medicare; Medicaid	  	 	22	  
	 Section 8.05
	 	No Possessory Rights	  	 	22	  
	 Section 8.06
	 	Employees	  	 	23	  
	 Section 8.07
	 	Licenses	  	 	23	  
	 Section 8.08
	 	Litigation	  	 	23	  
	 Section 8.09
	 	Environmental Matters	  	 	23	  
	 Section 8.10
	 	Compliance with Laws	  	 	23	  
	 Section 8.11
	 	Residence Agreements	  	 	24	  
	 Section 8.12
	 	Taxes	  	 	24	  
	 Section 8.13
	 	Personal Property	  	 	24	  
	 Section 8.14
	 	Title	  	 	24	  
	 Section 8.15
	 	Contracts	  	 	25	  
	 Section 8.16
	 	Insurance	  	 	25	  
	 Section 8.17
	 	Condemnation	  	 	25	  
	 Section 8.18
	 	Purchase Rights	  	 	25	  
	 Section 8.19
	 	Compliance with Permitted Exceptions	  	 	25	  
	 Section 8.20
	 	Utilities	  	 	25	  
	 Section 8.21
	 	Existing Owner Financing Documents	  	 	26	  
	 Section 8.22
	 	Management Documents	  	 	26	  
	 Section 8.23
	 	Facility Use	  	 	26	  
		
	 Article IX. COVENANTS
	  	 	26	  
			
	 Section 9.01
	 	Publicity	  	 	26	  
	 Section 9.02
	 	Commercially Reasonable Efforts	  	 	27	  
	 Section 9.03
	 	No Recordation	  	 	27	  
	 Section 9.04
	 	Licenses	  	 	27	  
	 Section 9.05
	 	Casualty	  	 	27	  
	 Section 9.06
	 	Condemnation	  	 	27	  
	 Section 9.07
	 	Operation of Business	  	 	27	  
		
	 Article X. CONDITIONS PRECEDENT TO THE OBLIGATION OF TRANSFEREE AND TRANSFEROR TO CLOSE
	  	 	28	  
			
	 Section 10.01
	 	Conditions to Transferee’s Obligation to Close	  	 	28	  
	 Section 10.02
	 	Conditions to Transferor’s Obligation to Close	  	 	28	  
		
	 Article XI. CLOSING
	  	 	29	  
			
	 Section 11.01
	 	Time and Place	  	 	29	  
	 Section 11.02
	 	Delivery of Documents at Closing	  	 	30	  
		
	 Article XII. INDEMNITY; DEFAULT; DAMAGES
	  	 	31	  
			
	 Section 12.01
	 	Survival	  	 	31	  
	 Section 12.02
	 	Transferee’s Remedies for Transferor’s Defaults	  	 	31	  
	 Section 12.03
	 	Transferor’s Remedies for Transferee’s Defaults	  	 	32	  

  
 ii 

							
	 Section 12.04
	 	 Indemnification by Transferee
	  	 	32	  
	 Section 12.05
	 	 Indemnification by Transferor
	  	 	32	  
	 Section 12.06
	 	 Administration of Indemnification
	  	 	33	  
	 Section 12.07
	 	 Exclusivity
	  	 	33	  
	 Section 12.08
	 	 Limitation of Liability
	  	 	34	  
	 Section 12.09
	 	 Business Representations Damages Cap
	  	 	34	  
		
	 Article XIII. DOWN PAYMENT AND ESCROW
	  	 	34	  
			
	 Section 13.01
	 	 Investment of Down Payment
	  	 	34	  
	 Section 13.02
	 	 Disbursement of Down Payment
	  	 	34	  
	 Section 13.03
	 	 Disputes
	  	 	36	  
	 Section 13.04
	 	 Compensation
	  	 	36	  
	 Section 13.05
	 	 Liability of Escrow Agent
	  	 	37	  
		
	 Article XIV. JOINT VENTURE AND FACILITY DOCUMENTS
	  	 	37	  
			
	 Section 14.01
	 	 Formation of Joint Venture
	  	 	37	  
	 Section 14.02
	 	 Termination of Existing Facility Documents
	  	 	38	  
	 Section 14.03
	 	 New Facility Documents
	  	 	38	  
	 Section 14.04
	 	 Other Documents
	  	 	39	  
	 Section 14.05
	 	 Escrow
	  	 	40	  
		
	 Article XV. FEES AND EXPENSES
	  	 	40	  
			
	 Section 15.01
	 	 Fees and Expenses
	  	 	40	  
	 Section 15.02
	 	 Title Costs
	  	 	41	  
	 Section 15.03
	 	 Transfer Taxes
	  	 	41	  
	 Section 15.04
	 	 Prorations
	  	 	41	  
	 Section 15.05
	 	 Other Closing Costs
	  	 	42	  
	 Section 15.06
	 	 Closing Cost Allocation
	  	 	42	  
		
	 Article XVI. REFINANCING AND HUD LOAN ASSUMPTIONS
	  	 	43	  
			
	 Section 16.01
	 	 Cooperation
	  	 	43	  
	 Section 16.02
	 	 Financing Fees
	  	 	43	  
	 Section 16.03
	 	 Refinancing Closing
	  	 	43	  
		
	 Article XVII. ASSUMED AND RETAINED LIABILITIES
	  	 	43	  
			
	 Section 17.01
	 	 Retained Liabilities
	  	 	43	  
	 Section 17.02
	 	 Assumed Liabilities
	  	 	44	  
		
	 Article XVIII. MISCELLANEOUS
	  	 	44	  
			
	 Section 18.01
	 	 Further Actions
	  	 	44	  
	 Section 18.02
	 	 Shenandoah Facility
	  	 	44	  
	 Section 18.03
	 	 Notices
	  	 	45	  
	 Section 18.04
	 	 Entire Agreement
	  	 	46	  
	 Section 18.05
	 	 Not Construed Against Drafter
	  	 	46	  
	 Section 18.06
	 	 Binding Effect; Benefits
	  	 	46	  
	 Section 18.07
	 	 Assignment
	  	 	46	  
	 Section 18.08
	 	 Governing Law
	  	 	47	  

  
 iii

							
	 Section 18.09
	 	 Amendments and Waivers
	  	 	47	  
	 Section 18.10
	 	 Severability
	  	 	47	  
	 Section 18.11
	 	 Headings
	  	 	47	  
	 Section 18.12
	 	 Counterparts
	  	 	47	  
	 Section 18.13
	 	 References
	  	 	47	  
	 Section 18.14
	 	 Exhibits
	  	 	47	  
	 Section 18.15
	 	 Attorneys’ Fees
	  	 	47	  
	 Section 18.16
	 	 Waiver of Jury Trial
	  	 	48	  
	 Section 18.17
	 	 Facsimile and PDF Signatures
	  	 	48	  
	 Section 18.18
	 	 Informational Meetings
	  	 	48	  

  

			
	EXHIBITS
		
	A	  	Facilities; Facility Owners
		
	B.	  	Refinancing Term Sheet

  
 iv 

 TRANSFER AGREEMENT 

THIS TRANSFER AGREEMENT (this “Agreement”) is dated as of the 31st day of August, 2012, by and among GCI DEVELOPMENT,
LLC, an Iowa limited liability company (“Transferor”) and CHT PARTNERS, LP, a Delaware limited partnership (“Transferee”). Certain capitalized terms used herein are defined in Section 1.01. 

RECITALS: 

A. Transferor is the sole member of CHT GCI PARTNERS I, LLC, a Delaware limited liability company (the “Company”).

 B. Transferor is also the sole member of (i) Vinton, IA Assisted Living Facility, L.L.C., an Iowa limited liability
company, (ii) Webster City, IA Assisted Living Facility, L.L.C., an Iowa limited liability company, (iii) Nevada, IA Assisted Living Facility, LLC, an Iowa limited liability company, (iv) Grinnell, IA Assisted Living Facility, L.L.C.,
an Iowa limited liability company, (v) Indianola, IA Assisted Living Facility, L.L.C., an Iowa limited liability company and (vi) Shenandoah, IA Assisted Living Facility , LLC (each a “Facility Owner” and collectively, the
“Facility Owners”). 
 C. Except for Nevada, IA Assisted Living Facility, LLC, each of the Facility Owners owns
the fee simple interest in the assisted living facility described across from such Facility Owner’s name on Exhibit A attached hereto (the “Facilities”). 

D. Nevada, IA Assisted Living Facility, LLC holds a ground lease interest in its Facility with an option to purchase. 

E. Transferor shall cause the Company to form, prior to the Pool One Closing (as hereinafter defined), a new Delaware “C”
corporation wholly owned by the Company (“TRS”). 
 POOL ONE ACQUISITION 

F. Transferor and Transferee are pursuing a refinancing of the Pool One Facilities (as defined on Exhibit A) with KeyBank
(“Lender”) on the terms set forth on Exhibit B attached hereto (the “Refinancing Term Sheet”) and such other terms and conditions as are reasonably satisfactory to both Transferor and Transferee (the
“Refinancing”). 
 G. Prior to the Pool One Closing, Transferee shall form, on behalf of the Company, the
following three (3) new Delaware entities, which immediately following the Restructuring (as hereinafter defined) and Pool One Closing, shall be wholly owned by the Company: (i) Vinton IA Assisted Living Owner, LLC, a Delaware limited
liability company, (ii) Webster City IA Assisted Living Owner, LLC, a Delaware limited liability company, and (iii) Nevada IA Assisted Living Owner, LLC, a Delaware limited liability company (each a “New Pool One Facility
Owner” and collectively the “New Pool One Facility Owners”). 
 H. Prior to the Pool One Closing,
Transferee shall form, on behalf of the TRS, the following three (3) new Delaware entities, which immediately following the Restructuring and Pool One Closing, shall be wholly owned by the TRS: (i) Vinton IA Assisted Living Tenant,

  
 1 

 
LLC, a Delaware limited liability company, (ii) Webster City IA Assisted Living Tenant, LLC, a Delaware limited liability company, and (iii) Nevada IA Assisted Living Tenant, LLC, a
Delaware limited liability company (each a “New Pool One Facility Tenant” and collectively the “New Pool One Facility Tenants”). 
 I. At the Pool One Closing, Transferor intends to cause the applicable Facility Owners to transfer and convey to the applicable New Pool One Facility Owners the Owned Assets associated with the Pool One
Facilities, which shall be deemed to have the values set forth for the applicable facilities on Schedule R-H attached hereto and by this reference made a part hereof (the “Pool One Transferor Contribution”). 

J. At the Pool One Closing, in return for an approximately seventy-five percent (75%) membership interest in the Company (the
“Transferee’s Equity Share”), Transferee intends to contribute to the Company an amount equal to approximately (i) Four Million Seven Hundred Eighty-Six Thousand Five Hundred Ninety-Eight and No/100 Dollars
($4,786,500.00)(the “Transferee Pool One Cash Contribution Amount”)(subject to adjustment as set forth herein provided that in no event shall the Transferee Pool One Cash Contribution Amount be an amount less than that necessary for
the resulting membership interest of Transferee in the Company to be less than 75%), plus (ii) Transferee’s pro-rata share of Shared Expenses relating to the Pool One Closing (collectively, the “Transferee Pool One
Contribution”)(and after which, Transferor will retain an approximately twenty-five percent (25%) membership interest in the Company, the “Transferor’s Equity Share”). 

K. A portion of the Transferee Pool One Contribution and the Refinancing, in an amount equal to approximately Six Million Four Hundred
Fifty-Seven Thousand One Hundred Eighty-Seven and 17/100 Dollars ($6,457,187.17) (the “Existing Financing Payoff Amount”), shall be utilized at the Pool One Closing to prepay in full the existing financing encumbering the Pool One
Facilities. 
 L. That portion of the cash held by the Company immediately after the Pool One Closing equal to the amount by
which the value of the Pool One Transferor Contribution, less the Transferor’s pro-rata share of Shared Expenses for the Pool One Closing exceeds the Transferor’s equity share in the Company (the “Pool One Transferor
Distribution”) shall be distributed to Transferor immediately after the Pool One Closing in order to reduce the Transferor’s Equity Share to 25%. 
 M. That portion of the Transferee Pool One Contribution remaining after payment of the Existing Financing Payoff Amount, the Transferee’s Shared Expenses and the Pool One Transferor Distribution, if
any, shall be used by the Company for working capital purposes. 
 POOL TWO ACQUISITION 

N. Transferor and Transferee are also pursuing the assumption of certain existing U.S. Department of Housing and Urban Development
(“HUD”) loans encumbering the Pool Two Facilities (as defined on Exhibit A) on such other terms and conditions as are reasonably satisfactory to both Transferor and Transferee (the “HUD Loan Assumptions”).

  
 2 

 O. Subject to receipt of HUD consent to the HUD Loan Assumptions, Transferor and Transferee
shall cause the Company, prior to the Pool Two Closing, to form the following two (2) new Delaware entities, which shall be wholly owned by the Company: (i) Grinnell IA Assisted Living Owner, LLC, a Delaware limited liability company, and
(ii) Indianola IA Assisted Living Owner, LLC, a Delaware limited liability company (each a “New Pool Two Facility Owner” and collectively the “New Pool Two Facility Owners”; the New Pool One Facility Owners and
the New Pool Two Facility Owners shall be together referred to individually a “New Facility Owner” and collectively as the “New Facility Owners”). 

P. Subject to receipt of HUD consent to the HUD Loan Assumptions, Transferor and Transferee shall cause the Company to cause the TRS,
prior to the Pool Two Closing, to form the following two (2) new Delaware entities: (i) Grinnell IA Assisted Living Tenant, LLC, a Delaware limited liability company, and (ii) Indianola IA Assisted Living Tenant, LLC, a Delaware
limited liability company (each a “New Pool Two Facility Tenant” and collectively the “New Pool Two Facility Tenants”; the New Pool One Facility Tenants and the New Pool Two Facility Tenants shall be together
referred to individually a “New Facility Tenant” and collectively as the “New Facility Tenants”). 
 Q. At the Pool Two Closing, Transferor intends to cause the applicable Facility Owners to transfer and convey to the applicable New Pool Two Facility Owners the Owned Assets associated with the Pool Two
Facilities, which shall be deemed to have the values set forth for the applicable facilities on Schedule R-H (the “Pool Two Transferor Contribution” and together with the Pool One Transferor Contribution, the “Transferor
Contribution”). 
 R. At the Pool Two Closing, Transferee intends to contribute to the Company an amount equal to
approximately (i) Three Million Eighty-Nine Thousand and No/100 Dollars ($3,089,000.00)(the “Transferee Pool Two Cash Contribution Amount”)(subject to adjustment as set forth herein provided that in no event shall the
Transferee Pool Two Cash Contribution Amount be an amount less than that necessary for the Transferee to maintain Transferee’s Equity Share), plus (ii) Transferee’s pro-rata share of Shared Expenses relating to the Pool Two
Closing (collectively, the “Transferee Pool Two Contribution”) and after which, Transferor will retain an the Transferor’s Equity Share. 
 S. That portion of the cash held by the Company immediately after the Pool Two Closing equal to the amount by which the value of the Pool Two Transferor Contribution, less the Transferor’s pro-rata
share of Shared Expenses for the Pool Two Closing exceeds the Transferor’s equity share in the Company (the “Pool Two Transferor Distribution”) shall be distributed to Transferor immediately after the Pool Two Closing in order
to reduce the Transferor’s Equity Share to 25%; provided, however, that $500,000 of the Pool Two Transferor Distribution shall be placed into the Indianola Performance Escrow (as hereinafter defined) and distributed pursuant to the terms
thereof. 
 T. That portion of the Transferee Pool Two Contribution remaining after payment of the Transferee’s Shared
Expenses and the Pool Two Transferor Distribution, if any, shall be used by the Company for working capital purposes. 

  
 3 

 U. The steps described in the foregoing Recitals E-S to form a new joint venture for the
purpose of owning and operating the Facilities, as well as any other structuring required pursuant to the Refinancing and HUD Loan Assumptions and agreed to by Transferor and Transferee in their reasonable discretion, shall hereinafter be referred
to as the “Restructuring.” 
 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: 

Access Agreement: that certain Access Agreement entered into between Transferor and Transferee dated June 28, 2012.

 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. 
 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 and 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. 

Company Subsidiaries: From and after Pool One Closing, TRS, the Facility Owners, the New Facility Owners, and the New Facility
Tenants. 
 Contract Date: The date of this Agreement, set forth in the introductory paragraph. 

Disclosure Statement: The Disclosure Statement prepared by Transferor and delivered to Transferee, as updated prior to each of the
Pool One Closing and the Pool Two Closing. 
 Documents: This Agreement and all Exhibits hereto, and each other
agreement, certificate or instrument delivered pursuant to this Agreement. 
 Down Payment: The Initial Down Payment and
the Second Down Payment. 
 Due Diligence Period: With respect to the Pool One Facilities, a period ending at 5:00pm EST
on August 23, 2012, as the same may be extended by the mutual written consent of the parties hereto. With respect to the Pool Two Facilities, a period commencing on October 1, 2012 

  
 4 

 
and ending at 5:00pm EST on November 30, 2012, provided that if the Pool Two Closing does not close within 15 days thereafter, Transferee shall have the right to reasonably request updated
due diligence prior to the Pool Two Closing and any objection to new matters appearing during such update which have a financial or material non-financial impact on the Pool Two Facilities. 

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 Real Property. 

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 applicable Facility Owners
with respect to the Pool One and Pool Two Facilities.  
 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; 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

  
 5 

 
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 to provide healthcare and other assisted living services to Residents as are provided or offered by Facility Owners as of the Contract Date. 
 Indianola Performance Escrow: An escrow agreement entered into by and among the Transferor, the Transferee and the Company whereby $500,000 of the Pool Two Transferor Distribution shall be placed
in escrow until such time as the Facility located in Indianola, Iowa produces a minimum of $200,000 of trailing three month operating margin, as defined on Schedule I attached hereto. If the Facility does not satisfy the foregoing test by the
first anniversary of the Pool Two Closing Date, the Indianola Performance Escrow shall be paid to the Transferee. 
 Initial
Down Payment: The sum of One Hundred Thousand and No/100 Dollars ($100,000.00). 
 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. 

  
 6 

 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 the Company, the Facility Owners, the New Facility Owners, the
Facilities, or the Real Property in the aggregate or (b) the ability of the parties to consummate the transactions contemplated by this Agreement, but excluding (i) any event, circumstance or condition resulting from any change in
economic, industry or market conditions (whether general or regional in nature or limited to any area where a Facility is located); (ii) any change in Law or regulatory policy of general applicability that does not affect only the Company or
the Facilities; (iii) the effect of any change in the United States economy or financial markets in general; (iv) any effect resulting from the announcement of this Agreement or Transferor’s compliance with this Agreement or the
Documents. 
 Medicaid/Medicare Contracts: Any contracts with any Governmental Entity or other Person, which are
necessary for the Facility Owners or facility managers 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 Transferee in writing 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 the Company on or before the
expiration of the applicable Due Diligence Period, with respect to the issuance by the Escrow Agent of an owner’s policy of title insurance insuring each New Facility Owner’s title to the applicable Real Property, effective as of the
acquisition by the Company of the Real Property 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. 

  
 7 

 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.

 Second Down Payment: the sum of Three Hundred Thousand and No/100 Dollars ($300,000.00). 

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 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. 

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: As applicable, an owner’s policy of title insurance insuring each New Facility Owner’s title to the
applicable Real Property, effective as of the acquisition by each New Facility Owner of the Real Property as provided herein or a loan policy of title insurance as required by the Lender or any other lender providing financing relating to the Pool
One Closing or the Pool Two Closing. 
 Transferor Reimbursable Transaction Costs: all actual out-of-pocket costs and
expenses incurred by Transferee in connection with the applicable transactions contemplated by this Agreement. 
 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. 

  
 8 

 Section 1.02 Additional Defined Terms. As used herein, the following terms shall
have the meanings defined in the recitals or sections indicated below: 
  

			
	Agreement	  	Preamble
	Assignment and Assumption Agreement	  	Section 14.03(d)
	Assumed Liabilities	  	Section 18.02
	Business Representations	  	Introductory paragraph to Article VIII
	Business Representations Damages Cap	  	Section 12.09
	Closing	  	Section 11.01
	Closing Conditions	  	Section 10.01
	Closing Date	  	Section 3.03
	Closing Statement	  	Section 11.02(a)(iv)
	Company	  	Recital A
	Contracts	  	Section 8.15
	Cut-Off Time	  	Section 15.04
	Deed Transfers	  	Section 14.03(a)
	Documents	  	Section 15.01(a)
	Due Diligence Materials	  	Section 3.01(f)
	Environmental Reports	  	Section 8.09
	Executive Order	  	Section 1.01, definition of Specially Designated National or Blocked Person
	Facility Agreements	  	Section 2.02(c)
	Facility/Facilities	  	Recital C
	Facility Owners	  	Recital B
	Failure of Condition Notice	  	Section 13.02(e)
	Financials	  	Section 8.01(a)
	HUD	  	Recital N
	HUD Loan Assumptions	  	Recital N
	Improvements	  	Section 2.02(a)(i)
	Indemnification and Contribution Agreement	  	Section 14.04(a)
	Indemnified Party	  	Section 12.06(a)
	Indemnifying Party	  	Section 12.06(a)
	JV Agreement	  	Section 14.01(a)
	Land	  	Section 2.02(a)(i)
	Lender	  	Recital G
	Loan	  	Section 14.04(a)
	Local Counsel Costs	  	Section 15.01(b)
	Manager Pooling Agreement	  	Section 14.03(e)
	New Pool One Facility Owner(s)	  	Recital G
	New Pool One Facility Tenant(s)	  	Recital H
	New Facility Owner(s)	  	Recital O
	New Management Agreement	  	Section 14.03(c)
	Operating Cash Infusion	  	Section 2.03
	Operating Lease	  	Section 14.03(b)
	Other Refinancing Fees and Expenses	  	Section 16.02
	Other Shared Closing Costs	  	Section 15.04
	Owned Assets	  	Section 2.02

  
 9 

			
	Personal Property	  	Section 2.02(b)(v)
	Pool One Closing	  	Section 11.01(a)
	Pool One Closing Date	  	Section 11.01(a)
	Pool One Transferor Contribution	  	Recital I
	Pool Two Closing	  	Section 11.01(b)
	Pool Two Closing Date	  	Section 11.01(b)
	Pool Two Transferor Contribution	  	Recital S
	Property Taxes	  	Section 15.04(a)
	Prorations	  	Section 15.04
	Refinancing	  	Recital F
	Refinancing Fee	  	Section 16.02
	Refinancing Term Sheet	  	Recital F
	Refinancing Third-Party Costs	  	Section 15.01(b)
	Residence Agreements	  	Section 2.02(c)
	Restructuring	  	Recital U
	Restructuring Documents	  	Section 14.05
	Retained Assets	  	Section 2.02
	Retained Liabilities	  	Section 18.01
	Shared Expenses	  	Section 15.05
	Shenandoah Facility	  	Section 18.02
	Survey	  	Section 3.02(a)
	Third-Party Costs	  	Section 15.01(b)
	Title Insurance Costs	  	Section 15.02
	Transfer Taxes	  	Section 15.03
	Transferee	  	Preamble
	Transferee Pool One Cash Contribution Amount	  	Recital J
	Transferee Pool One Contribution	  	Recital J
	Transferee Pool Two Cash Contribution Amount	  	Recital R
	Transferee Pool Two Contribution	  	Recital R
	Transferee Default Notice	  	Section 13.02(d)
	Transferee Notice of Objection to Transferor Reimbursable Transaction Costs	  	Section 13.02(e)
	Transferee’s Objection Notice	  	Section 13.02(d)
	Transferor	  	Preamble
	Transferor Board Consent	  	Section 7.02(a)
	Transferor Contribution	  	Recital Q
	Transferor Default Notice	  	Section 13.02(c)
	Transferor’s Failure of Condition Objection Notice	  	Section 13.02(e)
	Transferor’s Objection Notice	  	Section 13.02(c)
	TRS	  	Recital 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. 

  
 10 

 Article II. 
 AGREEMENT TO TRANSFER THE OWNED ASSETS 
 Section 2.01 Transfer of
Interests. 
 (a) Upon and subject to the terms and conditions provided herein, at the Pool One Closing, Transferee will pay
the Pool One Transferee Contribution as follows: Transferee shall contribute to the Company an amount equal to the Pool One Transferee Contribution less 3/5 of the Down Payment, which shall be credited and paid to the Company pursuant to Article
XIII. Upon and subject to the terms and conditions provided herein, at the Pool Two Closing, Transferee shall contribute to the Company an amount equal to the Pool Two Transferee Contribution less 2/5 of the Down Payment. 

(b) On the Pool One Closing Date, Transferor shall cause the Owned Assets with respect to the Pool One Facilities to be transferred to
the Company free and clear of any Lien, and the Company shall assume the Pool One Transferor Contribution in accordance with the terms of this Agreement. On the Pool Two Closing Date, Transferor shall cause the Owned Assets with respect to the Pool
Two Facilities to be transferred to the Company free and clear of any Lien other than Permitted Exceptions, and the Company shall assume the Pool Two Transferor Contribution in accordance with the terms of this Agreement. 

Section 2.02 Owned Assets. As of the Pool One Closing and Pool Two Closing, Transferor shall take such steps as may be
necessary so that all tangible and intangible assets, excluding any assets leased or licensed from a third party or listed on Schedule 2.02(g) (“Retained Assets”), used in, and material to, the operation of the Facilities as
they are currently being operated by the Pool One Facility Owners and Pool Two Facility Owners, respectively as applicable (as further described below, the “Owned Assets”) will be owned by the Company or the Company Subsidiaries (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. 
 (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 applicable 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

  
 11 

 
in connection with the Real Property and located upon the Real Property now or as of the applicable Closing. In no event shall the Personal Property include any property owned by any Resident.

 (ii) 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 any Facility Owner has an interest therein) in connection with the Improvements or the Personal Property described in paragraph (b)(i) above. 

(iii) All rights to hold Resident Deposits or other tenant security deposits received or held in connection with each
Facility, but excluding any Retained Assets. 
 (iv) 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 between the date hereof and the applicable 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 the Company, the TRS, the New Facility Owners, the Facility Tenants. The Company shall provide Transferor access to any such records for seven (7) years following each Closing Date. 

(e) Licenses. Any and all Licenses now held in the name of any Facility Owner, the Company and the Facility Owners, or any of
their Affiliates and used or useful in 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 Company, the TRS or the Facility Owners and used in connection with the operation of the Facilities, including, without limitation, any and all rights of the Company,
the TRS or 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 Company, the TRS and 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. 

  
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 (g) Excluded Assets. At Closing, the following assets shall not be considered Owned
Assets: (i) all assets owned solely by Transferor and not used in conjunction with the Facilities, 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, (iii) all assets owned by Residents, and (iv) any assets listed on Schedule 2.02(g) of the Disclosure statement. 
 Section 2.03 Operating Cash. All cash held by the applicable Facility Owners as of a Closing Date shall be distributed to Transferor at Closing. At each Closing, the Company shall fund in
to the operating account for each Facility an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) for purposes of working capital (the “Operating Cash Infusion”). Transferee acknowledges and agrees that from and
after the Pool One Closing Date, to the extent not prohibited by the documents evidencing the Refinancing, (a) working capital will be held in operating accounts owned by the TRS and the Company and (b) FF&E reserves will be held in
operating accounts owned by the Company. 
 Section 2.04 Down Payment. 

(a) Not later than three (3) Business Days after the Contract Date, Transferee shall deposit with Escrow Agent the Initial Down
Payment. Not later than three (3) Business Days after the expiration of the Due Diligence Period, Transferee shall deposit with Escrow Agent the Second Down Payment. The parties acknowledge that, except as otherwise provided herein, the Down
Payment shall be applied at Closing toward the Transferee Contribution. The failure of the Initial Down Payment or Second 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 Transferor upon written notice to Escrow Agent, unless prior to such termination Transferee makes the delinquent Down Payment and receives written acceptance thereof from Transferor. 

(b) If Transferee 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 Transferee, 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. 

Article III. 
 DUE
DILIGENCE 
 Section 3.01 Investigation of Facilities. Transferor shall provide Transferee with the following rights
of access for purposes of conducting due diligence with respect to the Facilities, and the Company, subject to the terms and conditions of this Section 3.01. 

  
 13 

 (a) To the extent not already delivered, Transferor shall deliver to Transferee accurate and
complete copies of all due diligence materials reasonably requested by Transferee that are in Transferor’s, the Company’s or the Facility Owners’ possession or under Transferor’s, the Company’s or the Facility Owners’
direct or indirect control. 
 (b) All other obligations relating to inspections shall be governed by the Access Agreement, the
terms and conditions of which are incorporated herein. 
 (c) In the event that Transferee is not satisfied, in its sole and
absolute discretion, with the proposed acquisition, ownership, financing or operation of the Owned Assets, then Transferee shall have the absolute right to terminate this Agreement at any time on or prior to the end of the applicable Due Diligence
Period. Such right to terminate shall be exercised by Transferee giving written notice to Transferor in accordance with Section 13.02(a) and Section 18.03 hereof, which written notice must be received by Transferor prior to the end of the
applicable Due Diligence Period. 
 (d) Upon a termination of this Agreement by Transferee in accordance with
Section 3.01(c), Transferee shall be entitled to receive a disbursement of the Down Payment in accordance with the provisions hereof, and Transferor and Transferee 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 Transferee, 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),
Transferee shall (i) return all original due diligence materials provided by Transferor and destroy all other due diligence materials prepared by Transferee (collectively, the “Due Diligence Materials”), (ii) use its
commercially reasonable efforts to cause all persons to whom Transferee has provided any original Due Diligence Materials to return such materials and to destroy all other Due Diligence Materials, and (iii) certify to Transferor that, to
Transferee’s knowledge, all original Due Diligence Materials have been returned to Transferor and all other Due Diligence Materials have been destroyed. The provisions of this Section 3.01(f) shall survive the termination of this
Agreement. 
 (g) Transferor acknowledges and agrees to assist the Transferee in conducting, no later than seventy-four
(74) days following a Closing Date, an audit of property-level financials for the applicable Owned Assets as specified by Rule 3-05 of Regulation S-X of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as
amended, provided such audit shall be at the sole cost and expense of Transferee. In connection therewith, Transferor agrees to obtain and provide to the auditors any and all data and financial information in the possession of Transferor, the
Company or the Facility Owners which are necessary or required by the auditors in connection with their preparation and conducting of the foregoing audit. The rights and obligations of Transferor and Transferee under this Section 3.01(g) shall
survive each Closing. 

  
 14 

 Section 3.02 Title. 

(a) Transferee shall obtain a Title Commitment and a survey (“Survey”) for each Facility. The costs of such Title
Commitment, each Title Policy, any endorsements to the Title Policies and a Survey for each Facility shall be paid in accordance with Article XV below. To the extent required by the Title Company, Transferor or any Company Subsidiary, as
applicable, shall execute 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 
 (b) Notwithstanding any other provision of
this Section 3.02, Transferor shall cause to be released at or prior to each of the Pool One Closing and Pool Two Closing, all Liens encumbering the Owned Assets, the Company and the Facility Owners subject to such Closing, 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 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
and Transferee hereunder. The Closing shall take place in two phases, as provided in Section 11.01 (each such date, a “Closing Date”). If all conditions precedent have not been satisfied or waived on or prior to a
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. 

Article IV. 

REPRESENTATIONS AND WARRANTIES OF TRANSFEREE 
 Transferee represents and warrants to Transferor as follows: 
 Section 4.01
Organization, Good Standing and Entity Authority. Transferee 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. 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 

  
 15 

 
consummation by Transferee of the transactions contemplated hereby, on the terms and subject to the conditions herein shall be duly authorized by all necessary action on the part of Transferee
and Transferee’s board of directors with respect to each pool of Facilities on or before the expiration of the Due Diligence Period applicable to each pool of Facilities,. 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 4.03 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. 
 (b) Transferee is not a
“governmental plan” within the meaning of Section 3(32) of ERISA and the funds used by Transferee 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 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 4.05 Consents. Except for 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,
except for the consent of Transferee’s board of directors which shall be obtained prior to the expiration of the Pool One Due Diligence Period with respect to the Pool One Properties and prior to the expiration of the Pool Two Due Diligence
Period with respect to the Pool Two Properties, the consent, waiver or approval of any other Person which has not been obtained and is currently in full force and effect. 

  
 16 

 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 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 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 each Closing without time limitation. 

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 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’s 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 4.08 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 encumbrancer 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 Transferee (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 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 Affiliates is acting on behalf of a government of any country that is subject to such an embargo. 

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 Stephen H. Mauldin and Joseph T. Johnson, 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 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. 

  
 17 

 Article V. 
 INTENTIONALLY OMITTED 
 Article VI. 

INTENTIONALLY OMITTED 
 Article VII. 
 REPRESENTATIONS AND WARRANTIES OF TRANSFEROR 

Transferor represents and warrants to Transferee as follows: 
 Section 7.01 Organization, Good Standing, Entity Authority and Qualification. Transferor is a limited liability company duly organized, validly existing and in good standing under the laws of
the State of Iowa. Transferor has all requisite company power to own, operate and lease its properties and carry on its business. The Facility Owners are limited liability companies, duly organized, validly existing and in good standing under the
laws of the State of Iowa, 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.
Transferor (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 Transferor and the consummation by Transferor and the Facility Owners 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 and Facility Owners’ respective shareholders, members and board of directors (the “Transferor Board
Consent”). This Agreement has been, and each of the other Documents to which Transferor or a Facility Owner is to be a party will be, duly executed and delivered by Transferor or the applicable Facility Owner 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 and the Facility Owners enforceable against Transferor and the
Facility Owners 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.
Except as set forth on Schedule 7.03 of the Disclosure Statement, the execution, delivery and performance by Transferor of this Agreement and the other Documents to which Transferor and/or any Facility Owner is to be a party, and consummation by
Transferor and the Facility Owners 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 Transferor, the Company, the Facility Owners or any of their Affiliates, 

  
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any indenture, mortgage, lease, loan agreement or other agreement or instrument by which Transferor, the Company, the Facility Owners or any of their Affiliates is bound or affected, or any law,
regulation, rule, judgment, order or decree to which Transferor, the Company, the Facility Owners or any of their Affiliates is subject. 
 Section 7.04 Consents. Except as set forth on Schedule 7.04 of the Disclosure Statement, the execution, delivery and performance by Transferor of this Agreement and the other Documents to
which it is a party, and consummation by Transferor and the Facility Owners 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, except for the Transferor Board Consent, the consent, waiver or approval of any other Person. 
 Section 7.05 Broker’s or Finder’s Fees. Except as set forth on Schedule 7.05 of the Disclosure Statement, no agent, broker, investment banker, or other Person acting on behalf of
Transferor (or any Affiliate of Transferor) 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 Transferee in connection with the
transactions contemplated by this Agreement. Transferor agrees to indemnify and hold Transferee and its 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 each Closing without time limitation. 

Section 7.06 ERISA. 
 (a) Neither Transferor nor any Facility Owner is 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) Neither Transferor nor any Facility Owner is a “governmental plan” within the meaning of Section 3(32) of ERISA and no
funds received by Transferor 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 Ownership of Owned
Assets. Except as set forth on Schedule 7.02 of the Disclosure Statement, Transferor and the Facility Owners are the sole legal and beneficial owners of their respective Owned Assets. The Owned Assets are free and clear of all Liens, other than
the Permitted Encumbrances and Existing Owner Financing, and Transferor and the Facility Owners have good and marketable title to the Owned Assets. There is no restriction or limitation on Transferor’s or any Facility Owner’s right to sell
the Owned Assets as contemplated by this Agreement. At the Pool One Closing, Transferor and Pool One Facility Owners will transfer to Transferee good and marketable title to the Pool One Owned Assets, free and clear of all Liens. At the Pool Two
Closing, Transferor and Pool Two Facility Owners will transfer to Transferee good and marketable title to the Pool Two Owned Assets, free and clear of all Liens other than those related to the HUD Loan Assumptions. 

  
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 Section 7.08 No Judgments. Except as set forth on Schedule 7.08 of the
Disclosure Statement, there are no judgments presently outstanding and unsatisfied against Transferor, the Company or any of the Facility Owners, and, to Transferor’s knowledge, none of Transferor, the Company or any of 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 Transferor’s knowledge, no such judgment, litigation or proceeding is threatened against Transferor the Company or any of the Facility Owners. 

Section 7.09 No Governmental Approvals. Except as set forth on Schedule 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
Transferor or any Facility Owner of this Agreement, any Document to which Transferor or any Facility Owner is a party or Transferor’s or any Facility Owner’s taking of any action thereby contemplated, which has not been (or as of the
applicable Closing will not have been) obtained and is (or as of applicable Closing will be) in full force and effect. 

Section 7.10 No Insolvency. None of Transferor, the Company 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. Transferor 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 possession of its
interest in any Facility, or had any execution or distress become enforceable or become levied upon its interest in any Facility. 
 As used in this Agreement, the phrase “to Transferor’s knowledge” and similar phrases shall mean the current, actual (not constructive, imputed, or implied) knowledge, after due inquiry, of
Steven R. Heyer, Michelle Byard, Mike Daniel and Scott L. Smith, who Transferor represents are the persons most knowledgeable about Transferor’s overall business and affairs. Notwithstanding anything herein to the contrary, Transferor shall
have no liability to Transferee for a breach of any representation or warranty hereunder, if the breach in question is based on a condition, state or 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. 

  
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 Article VIII. 
 BUSINESS REPRESENTATIONS 
 Transferor represents and warrants to Transferee as
follows with respect to each of the facilities owned by its Affiliates as of the Pool One Closing or Pool Two Closing (the following representations, the “Business Representations”): 

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

(a) The financial statements which have been provided to Transferee and are attached hereto as Schedule 8.01, fairly present in
all material respects the financial condition and the results of operations of the Facility Owners 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 Financials, there are no
material Liabilities of the Facility Owners 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 in the ordinary course of business of the Facility Owners consistent with past
practice or in connection with this Agreement or the other Documents; 
 (iii) in the case of unaudited financial
statements, normal recurring year-end adjustments and the absence of notes; and 
 (iv) Liabilities incurred
since the last date of the balance sheet provided to Transferee for the applicable Facility Owner. 
 (c) The Facility Owners
have conducted their respective businesses in the ordinary course of business consistent with past practice and there has not been since the last balance sheet provided to Transferee for the applicable Facility Owner: 

(i) other than dividends and distributions paid in the ordinary course of business of the Facility Owners consistent with
past practice, any declaration, setting aside or payment of any dividend or other distribution with respect to any equity interest of the Facility Owners (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 the Facility Owners; 

(ii) any amendment of any term of any outstanding equity interest of the Facility Owners; 

  
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 (iii) any incurrence, assumption or guarantee by the Facility Owners of any
indebtedness that would have a Material Adverse Effect; 
 (iv) any creation or assumption by the Facility Owners
of any Lien on any asset that would have a Material Adverse Effect, except for Permitted Exceptions; 
 (v)
except as set forth on the Disclosure Statement, any (i) transaction or commitment made, or any Contract entered into, by the Facility Owners 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 the Facility Owners 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 
 (vi) any change in any method of accounting or accounting practice not required by GAAP by the Facility Owners or any election for Taxes. 

Section 8.02 Books and Records; Internal Controls. All records relating to the Company 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 the Company and the Facility Owners. 
 Section 8.03 Obligations. Except (a) to the extent
reflected or reserved against in the Financials, (b) normal trade creditors payable in the ordinary and normal course of business since the dates of such Financials and (c) the Existing Owner Financing, none of the Company or the Facility
Owners have any material outstanding Liabilities, which in each case would reasonably be anticipated to have a Material Adverse Effect. 
 Section 8.04 Medicare; Medicaid. Except as set forth on Schedule 8.04 of the Disclosure Statement, none of Transferor, the Company or any Facility Owners are party to any Medicaid/Medicare
Contracts with respect to the provision of services at the Facilities. 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 Transferor’s
knowledge, threatened against any of Transferor, the Company or any Facility Owner in connection with the Facilities which would reasonably be anticipated to have a Material Adverse Effect. To Transferor’s knowledge, none of Transferor, the
Company 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. 
 Section 8.05 No Possessory Rights. Except for as set forth in Schedule 8.05 of the Disclosure Statement, and except for any parties in possession pursuant to, and any rights of possession
granted under, the Residence Agreements, 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 Transferor, the Company or any Facility Owners to any third party or
parties, except for licenses to use space which are cancelable by Transferor, the Company or any Facility Owners on ninety (90) days or less notice. 

  
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 Section 8.06 Employees. None of the Facility Owners has any employees. All
personnel employed at the Facilities are employees of a third party leasing company and will be terminated as of the Pool One Closing or the Pool Two Closing (as applicable) without liability to the Transferee, New Facility Owners or New Facility
Tenants. 
 Section 8.07 Licenses. The Facility Owners and the Facilities 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 and as listed on Schedule 8.07 of the Disclosure Statement, 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 Transferor’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 no notice has been received by Transferor, or any Facility Owners 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. Except as set forth in Schedule 8.08 of the Disclosure Statement, there currently exists
no litigation with respect to the Real Property, Facilities or the Facility Owners, nor to Transferor’s Knowledge has any litigation been threatened, which is not fully covered by insurance in place (subject to 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 Transferor’s knowledge, threatened in writing against any of Transferor (as to the Facilities), the Real
Property or the Facility Owners. 
 Section 8.09 Environmental Matters. Transferor has provided Transferee with
access to or copies of all environmental reports and documentation related to the environmental reports in the possession of Transferor or the Facility Owners with respect to the Real Property and the Facilities (the “Environmental
Reports”). No written notice has been received by Transferor or the Facility Owners 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 Transferee prior to the applicable Closing Date, to Transferor’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. To Transferor’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 Compliance with Laws. Except as would not reasonably be
anticipated to have a Material Adverse Effect or except as set forth on Schedule 8.10 of the Disclosure Statement, no written notice has been received by Transferor or the Facility Owners, nor does Transferor or any Facility Owner have knowledge,
that any of the Facilities is in violation of any applicable statute, law, regulation, rule, ordinance, order, License, permit, deed restrictions, 

  
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zoning or subdivision regulations, conditions of approval or permitting, urban redevelopment plans, local, state or federal environmental law or regulation or any building code or fire code. To
Transferor’s knowledge, all improvements have been constructed in accordance with (i) the plans for such improvements and (ii) applicable building codes, laws and regulations in a good and workmanlike manner. Each of the Facilities
complies in all material respects with the applicable provisions of the Americans with Disabilities Act and all related and applicable laws, rules, regulations and/or orders governing or relating to accessibility. 

Section 8.11 Residence Agreements. Transferee has been supplied with true and correct copies of the form of the Residence
Agreement currently in use for new admissions at the Facilities. No Facility Owner is in default, and, to Transferee’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 provided to Transferor 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. 
 Section 8.12 Taxes. To Transferor’s knowledge, each of Transferor 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, to Transferor’s knowledge,
whether or not shown on such returns or reports to be due, of Transferor 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 Transferor (with respect to the Facilities) and the Facility Owners, except liens for current taxes not yet delinquent. 
 Section 8.13 Personal Property. As of the expiration of the Due Diligence Period and except as set forth on Schedule 8.13 of the Disclosure Statement, 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 and the Existing Owner Financing. 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 8.14 Title. Except as set forth on Schedule 8.14 of the Disclosure Statement, To Transferor’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 Land and Improvements set forth across from such Facility
Owner’s name as described on Exhibit A attached hereto (except with respect to the Nevada, IA Facility, in which the Facility Owner holds a ground lease coupled with a purchase option to be exercised at the Pool One Closing),
(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 

  
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Owner, free and clear of all Liens, except for Permitted Exceptions, Existing Owner Financing and as otherwise expressly disclosed in this Agreement, and (c) the Real Property upon which
each Facility is located is a separate parcel for real estate tax assessment purposes. To Transferor’s knowledge, there are no federal, state, county or municipal plans to restrict or change access from any highway or road to any Facility.

 Section 8.15 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 listed on Schedule 8.15 attached hereto and are in full force and effect and (b) none of Transferor any Facility Owner, or, to Transferor’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 8.16 Insurance. None of Transferor, the Company or the Facility Owners 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. With respect to each insurance
policy affecting any Facility: (i) the policy is legal, valid, binding, enforceable and in full force and effect, (ii) neither the Company nor any of the Facility Owners, nor to Transferor’s knowledge, any other party to the policy,
is in material breach or default thereunder, and to Transferor’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 8.17 Condemnation. Neither Transferor, the Company nor any of the
Facility Owners has received any written notice of, nor, to Transferor’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 8.18 Purchase Rights. Except with respect to the Nevada, IA Facility, in which the Facility Owner holds a ground
lease coupled with a purchase option to be exercised at the Pool One Closing, there are no unrecorded purchase contracts, options or other agreements of any kind, whereby any Person other than the 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 8.19 Compliance with Permitted Exceptions. None of Transferor, the Company, 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 8.20
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. None of Transferor, the Company or any Facility Owner has received any notice stating that the provision of
utilities violates any public or private easement. 

  
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 Section 8.21 Existing Owner Financing Documents. Schedule 8.21 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. 

Section 8.22 Management Documents. Except as set forth on Schedule 8.22 of the Disclosure Statement, Transferor represents
and warrants to Transferee that, as of each Closing Date, there exists no agreement, contract or license agreement with respect to the provision of property management services at the applicable Facilities, other than the New Management Services
Agreements. 
 Section 8.23 Facility Use. Except as set forth on Schedule 8.23 of the Disclosure Statement, the
Facilities and the use thereof and the condition thereof do not violate, in any material respect, any applicable deed restrictions, zoning or subdivision regulations, conditions of approval or permitting, urban redevelopment plans, local, state or
federal environmental law or regulation or any building code or fire code applicable to the Facilities (“Applicable Laws and Restrictions”), and are not designated by any governmental agency to be in a flood plain area. 

Article IX. 

COVENANTS 

Section 9.01 Publicity. The parties agree that, prior to each 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, this Agreement, to obtain the necessary consents to consummate the transactions contemplated hereby 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 execution of this Agreement and/or the
transfer of the Owned Assets, provided that with respect to (a) any press release by Transferee or its Affiliates which identifies Transferor or its Affiliates, Transferee shall use its reasonable best efforts to seek the prior approval
of the Transferor, such approval not to be unreasonably delayed or withheld and (b) any press release by Transferor or its Affiliates which identifies Transferee or its Affiliates, Transferor shall use its reasonable best efforts to seek the
prior approval of the Transferor, such approval not to be unreasonably delayed or withheld and, in each case, 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. 

  
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 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. 
 Section 9.03 No Recordation. Transferor and Transferee each agrees that neither this Agreement nor any memorandum or notice hereof shall be recorded and Transferee 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 against all Losses or Liabilities incurred by either of them by reason of
the filing by Transferee, as applicable, of such notice of pendency or other instrument. 
 Section 9.04 Licenses.
During the Due Diligence Period, Transferor will and will cause the New Facility Tenants to apply for and diligently pursue issuance of the 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 $500,000, subject to the terms of the Existing Owner Financing, Transferor shall promptly cause the applicable Facility Owner to undertake such repair and complete the same. 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 event the cost of repair thereof is equal to or
greater than $500,000, Transferee, in its sole discretion, shall either (i) proceed to Closing, in which event all insurance proceeds attributable to such damage or destruction shall be transferred to the New Facility Owner at Closing and the
amount of any deductible with respect to such damage or destruction shall be paid by Transferor and Transferee in accordance with Article XV below or (ii) as Transferee’s sole and exclusive remedy in such event, terminate this
Agreement, in which event the Down Payment shall be promptly returned to Transferee, and Transferor and Transferee 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, Transferor shall notify Transferee of the same as promptly as commercially practicable, and Transferee 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 New Facility Owner at Closing, or (ii) as Transferee’s sole and exclusive remedy in such event,
terminate this Agreement, in which event the Down Payment shall be promptly returned to Transferee, and Transferor and Transferee 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 applicable
Closing Date, Transferor will cause each Facility Owner manage and operate the Facilities then owned by the Facility Owners, 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. 

  
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 Article X. 
 CONDITIONS PRECEDENT TO THE OBLIGATION 
 OF TRANSFEREE AND TRANSFEROR TO CLOSE

 Section 10.01 Conditions to Transferee’s Obligation to Close. The obligation of Transferee to proceed to the
Pool One Closing or the Pool Two Closing, as applicable, is subject to the satisfaction of each of the following conditions (the “Closing Conditions”) generally, or with respect to the Pool One or Pool Two Facilities only, as
applicable to the Facility Owners and Facilities that are subject to the Closing, any of which may be waived, in whole or in part, in writing by Transferee at or prior to the applicable Closing: 

(a) Transferor shall have performed in all material respects all of its obligations under this Agreement which are required to be
performed at or prior to the applicable Closing. 
 (b) All representations and warranties of Transferor 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 applicable Closing Date with the same force and effect as though made on and as of the applicable Closing Date. 

(c) Transferor shall have executed and/or delivered all of the documents required to be delivered at Closing pursuant to
Section 11.02 (a). 
 (d) 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) With respect to the Pool One Facilities, the Refinancing shall have
closed simultaneously with the closing of the Pool One Facilities, on substantially the terms and conditions set forth in the Refinancing Term Sheet and such other terms as are customary for similar mortgage financing or otherwise reasonably
acceptable to Transferee. With respect to the Pool Two Facilities, the HUD Loan Assumptions shall have closed simultaneously with the closing of the Pool Two Facilities, on terms and conditions reasonably acceptable to Transferee. 

Section 10.02 Conditions to Transferor’s Obligation to Close. The obligation of Transferor to proceed to the Pool One
Closing or Pool Two Closing, as applicable, is subject to the satisfaction of each of the following conditions, generally, or with respect to the Pool One or Pool Two Facilities only, as applicable to the Facilities and Facility Owners that are the
subject of the Closing, any of which may be waived, in whole or in part, in writing by Transferor at or prior to the applicable Closing: 
 (a) Transferee 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 Transferee set forth in Article IV 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 applicable Closing Date. 
 (c) Transferee shall have executed and delivered all of the documents required to be delivered at Closing pursuant to Sections 11.02 (b). 

(d) Provided that Transferor is not in breach of its 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) With respect to the Pool
One Facilities, the Refinancing shall have closed simultaneously with the closing of the Pool One Facilities, on substantially the terms and conditions set forth in the Refinancing Term Sheet and such other terms as are customary for similar
mortgage financing or otherwise reasonably acceptable to Transferor. With respect to the Pool Two Facilities, the HUD Loan Assumptions shall have closed simultaneously with the closing of the Pool Two Facilities, on terms and conditions reasonably
acceptable to Transferor. 
 Article XI. 
 CLOSING 
 Section 11.01 Time and Place. 

(a) Closing of Transferor’s and Facility the Pool One Facility Owners’ transfer of the Pool One Facility Owned Assets pursuant
to this Agreement (generally, a “Closing” and specifically, the “Pool One Closing”) shall take place at the offices of Lowndes, Drosdick, Doster, Kantor & Reed, P.A. (or at such other place as Transferee
and Transferor mutually agree) and shall occur the later of (i) August 31, 2012 or (ii) fifteen (15) days following the date upon which all Closing Conditions have been satisfied or waived with respect to the Pool One Facilities
(the “Pool One Closing Date”). If the Pool One Closing has not occurred on or before October 31, 2012, then the parties agree to discuss in good faith whether to proceed working towards closing or to terminate this Agreement.

 (b) Closing of Transferor’s and Facility the Pool Two Facility Owners’ transfer of the Pool Two Facility Owned
Assets pursuant to this Agreement (generally, a “Closing” and specifically, the “Pool Two Closing”) shall occur within fifteen (15) days following the date on which the HUD Loan Assumptions are approved by HUD
and all Closing Conditions have been satisfied or waived with respect to the Pool Two Facilities (the “Pool Two Closing Date”). If the Pool Two Closing has not occurred on or before June 30, 2013, then the parties agree to
discuss in good faith whether to proceed working towards closing or to terminate this Agreement. 

  
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 Section 11.02 Delivery of Documents at Closing. 

(a) At each Closing, Transferor shall: 
 (i) Execute, acknowledge and deliver a certificate to Transferee confirming the matters set forth in Sections 10.01 (a) and (b) with respect to Transferor, as of the applicable
Closing Date, such certificates to be signed by an officer of Transferor. 
 (ii) Provide to Transferee
(A) a copy of the Charter Documents of Transferor and/or each Facility Owner, certified by a duly authorized officer of Transferor or the Facility Owner, (B) a copy of resolutions or other actions of the managers and members of Transferor
and/or Facility Owners certified by a duly authorized officer of Transferor, and (C) such other evidence of the power and authority of Transferor and Facility Owners to consummate the transactions described in this Agreement as Transferee may
reasonably require. 
 (iii) Execute and cause the Facility Owners to execute, acknowledge or 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. 

(iv) Execute and cause the Facility Owners to execute, acknowledge or cause to be acknowledged as appropriate and deliver
to Transferee a closing statement or memorandum in a form reasonably acceptable to Transferor and Transferee (the “Closing Statement”). 
 (v) Execute and cause the Facility Owners to execute, acknowledge and deliver to Transferee a non-foreign status affidavit in the form as required by Section 1445 of the Code. 

(vi) Execute and cause the Facility Owners to execute, acknowledge and file, 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 Owned Assets to the Company as contemplated hereunder. 

(vii) Pay and fully satisfy all obligations which are evidenced by any Lien encumbering the Owned Assets which are not
permitted hereunder. 
 (viii) Execute and deliver, or cause to be executed and delivered, all Restructuring
Documents to be executed by Transferor, the Company, the Facility Owners or the New Facility Owners. 
 (ix) If a
search of the title to the Owned Assets discloses judgments, penalties or other returns against other Persons having names the same as or similar to that of Transferor or any Facility Owner, Transferor will, on request, execute and deliver to
Transferee (or cause to be delivered to Transferee) an affidavit from Transferor and/or the applicable Facility Owner(s) to the effect that such judgments, penalties or other returns are not against Transferor or the applicable Facility Owner(s).

  
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 (b) At each Closing, Transferee shall: 

(i) Execute, acknowledge and deliver a certificate to Transferor confirming the matters set forth in Sections
10.03(a) and (b) with respect to Transferee, as of the applicable Closing Date, such certificates to be signed by an officer of Transferee. 
 (ii) Provide to Transferor (A) a copy of the Charter Documents of Transferee certified by a duly authorized officer or partner of Transferee, (B) a copy of resolutions or other actions of the
partners of Transferee certified by a duly authorized officer or partner of Transferee, and (C) such other evidence of the power and authority of 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 and deliver, or cause to be executed and delivered, all Restructuring Documents to be executed by Transferee, the Company, the Facility Owners or the New Facility Owners. 

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

(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, in connection with the transfer of the Owned Assets to Transferee (or its designee), as contemplated hereunder. 

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 applicable 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 applicable 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) Transferee’s representations and warranties
contained in Sections 4.01 through 4.09 and (b) Transferor’s representations and warranties contained in Sections 7.01 through 7.10. 
 Section 12.02 Transferee’s Remedies for Transferor’s Defaults. If Transferor 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 Transferee specifying such default, Transferee may, as its sole remedy hereunder, by delivering notice in writing to
Transferor in the manner provided in this Agreement, either, (i)

  
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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 Transferee shall
receive a disbursement of the Down Payment and Transferor shall pay Transferee for its Transferor Reimbursable Transaction Costs within thirty (30) calendar days of such termination, (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 the Owned Assets 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. 
 Section 12.03 Transferor’s Remedies for Transferee’s Defaults. If Transferee 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 Transferor specifying such default, Transferor may, as its sole remedy hereunder, by delivering notice in writing to
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
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 Transferor would 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 Transferor shall not have any right or remedy to seek specific performance or injunctive relief with
respect to any default by Transferee. 
 Section 12.04 Indemnification by Transferee. Transferee 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. 

Section 12.05 Indemnification by Transferor. Transferor shall, during the applicable survival period, indemnify, defend, and
hold harmless Transferee and its 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 Transferor of any of its representations, warranties, covenants or agreements in this Agreement or any other Document, subject to the Business Representations Damage Cap with respect to breaches of Business Representations. Prior
to each Closing, Transferor shall either demonstrate to Transferee that it has sufficient financial wherewithal (in Transferee’s reasonable business judgment) to satisfy any potential Transferee indemnification obligations hereunder, or
otherwise provide a guarantor of such indemnification obligations reasonably satisfactory to Transferee in its reasonable business judgment. 

  
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 Section 12.06 Administration of Indemnification. For purposes of administering
the indemnification provisions set forth in Sections 12.04 and 12.05, 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 12.07 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 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. 

  
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 Section 12.08 Limitation of Liability. Except to the extent awarded to a party
other than an Indemnified Party in respect of third party claims, in no event shall any Indemnified Party be entitled to any incidental, indirect, special or consequential damages resulting from or arising out of any claim under this Article XII,
including damages for lost revenues, income or profits, diminution of value of one or more Facility or any other damage or loss resulting from the disruption or loss of operation of one or more Facility, unless a result of fraud or intentional
misrepresentation. 
 Section 12.09 Business Representations Damages Cap. Notwithstanding anything to the contrary
contained herein or in any other Document, if the Closing of the transactions hereunder shall have occurred, Transferor shall have no Liability to Transferee, its members, officers, directors, employees or Affiliates, successors or assigns, for the
breach of the Business Representations in excess of, in the aggregate, $1,500,000 with respect to the Pool One Facilities and $1,000,000 in the aggregate with respect to the Pool Two Facilities and $500,000 for the Shenandoah Facility (the
“Business Representations Damage Cap”). 
 Article XIII. 

DOWN PAYMENT AND ESCROW 
 Section 13.01 Investment of Down Payment. Transferee shall deposit the Down Payment with the Escrow Agent. 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 Transferee 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 Pool One Due Diligence Period, Escrow Agent shall receive written notice from Transferee
stating that (i) Transferee is terminating this Agreement, and (ii) Transferee is simultaneously giving Transferor a copy of such notice, Escrow Agent shall promptly disburse 3/5 of the Down Payment to Transferee without the need for
further instructions from or approvals by any other party to this Agreement. If at any time on or prior to the date that is eight (8) Business Days after the date of this Agreement, Escrow Agent shall receive written notice from Transferor
stating that (i) Transferor is terminating this Agreement due to the failure to receive the Transferor Board Consent with respect to the Pool One Properties and (ii) Transferor is simultaneously giving Transferee a copy of such notice,
Escrow Agent shall promptly disburse 3/5 of the Down Payment to Transferee without the need for further instructions from or approvals by any other party to this Agreement. If at any time prior to expiration of the Pool Two Due Diligence Period,
Escrow Agent shall receive written notice from Transferee stating that (i) Transferee is terminating this Agreement, and (ii) Transferee is simultaneously giving Transferor a copy of such notice, Escrow Agent shall promptly disburse 2/5 of
the Down Payment to Transferee without the need for further instructions from or approvals by any other party to this Agreement. 

  
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 (b) If at any time after the expiration of the Pool One Due Diligence Period, but prior to
Closing, Escrow Agent shall receive written notice from Transferee stating that (i) Transferee is terminating this Agreement for a reason other than a Transferor default or another reason which would permit Transferee to receive the Down
Payment, and (ii) Transferee is simultaneously giving Transferor a copy of such notice, Escrow Agent shall promptly disburse 3/5 of 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(e), if Escrow Agent shall receive written notice from
Transferee (“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) Transferee 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. 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 Transferee, then Escrow Agent shall not return the Down Payment to Transferee. 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 Transferee without the need for further instructions from or approvals by any other party to
this Agreement. 
 (d) Except as provided in Section 13.02(e), if Escrow Agent shall receive written notice from Transferor
(“Transferee Default Notice”) stating that (i) Transferee 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 has not
cured such failure or default in accordance with Section 12.03, and (iii) Transferor 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. If on or before the date which is five (5) Business Days following Transferee’s receipt of the Transferee Default Notice, Transferee shall object in writing (“Transferee’s Objection Notice”) to the return
of the Down Payment to Transferor, then Escrow Agent shall not return the Down Payment to Transferor. If Transferee 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 receipt of the Transferee Default Notice, then Escrow Agent shall promptly return the Down Payment to Transferor without the need for further instructions from or approvals by any other party to this Agreement.

 (e) Subject to Section 15.05 below, if Escrow Agent shall receive written notice from Transferee
(“Failure of Condition Notice”) stating that Transferee is demanding the return of the Down Payment because either (i) Transferee 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) or (e) or (ii) Transferor 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 10.02(d) or (e) and confirming that Transferor is not in breach of its obligations under Section 9.04, 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 Transferor’s receipt of the 

  
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Failure of Transferee Condition Notice, Transferor shall object in writing to the return of the Down Payment to Transferee because (x) Transferor objects to Transferee’s statement in
the Failure of Condition Notice regarding failure of any conditions specified in subsections (i) or (ii) above or (y) Transferor is demanding payment of any Transferor Reimbursable Transaction Costs from the Down Payment
(“Transferor’s Failure of Condition Objection Notice”), then Escrow Agent shall not return the Down Payment to Transferee. 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 Transferee, without the need for further instructions from or
approvals by any other party to this Agreement. If Transferor’s Failure of Condition Objection Notice specifies that Transferor is demanding payment of any Transferor Reimbursable Transaction Costs from the Down Payment, then Escrow Agent shall
immediately and simultaneously deliver a copy of the Transferor Failure of Condition Objection Notice to Transferee and on or before the date which is five (5) Business Days following Transferee’s receipt of the Transferor’s Failure
of Condition Objection Notice, Escrow Agent shall receive written notice from Transferee stating that Transferee is objecting to the amount of Transferor Reimbursable Transaction Costs which Transferor is demanding be paid to Transferor (the
“Transferee Notice of Objection to Transferor Reimbursable Transaction Costs”), then Escrow Agent shall not disburse any portion of the Down Payment to Transferor or Transferee. If Transferee shall not deliver a Transferee’s
Notice of Objection to Transferor Reimbursable Transaction Costs on or before the date which is five (5) Business Days following Transferee’s receipt of the Transferor’s Failure of Condition Objection Notice, then Escrow Agent shall
promptly disburse to Transferor from the Down Payment, an amount equal to the Transferor Reimbursable Transaction Costs demanded in the Transferor’s Failure of Condition Objection Notice and return to Transferee any remaining portion of the
Down Payment, without the need for further instructions from or approvals by any other party to this Agreement. 
 (f) 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 the Company as part of the Pool One Transferee Contribution. 

Section 13.03 Disputes. In the event of any dispute between Transferor and Transferee regarding the disbursement of the Down
Payment pursuant to Sections 13.02(c), (d) or (e), 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 and Transferee 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. 

  
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 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 and Transferee, 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. 
 JOINT VENTURE AND FACILITY DOCUMENTS 
 Section 14.01 Formation of Joint
Venture. 
 (a) Upon the occurrence of the Pool One Closing, Transferor and Transferee shall take such steps as may be
necessary to consummate the Restructuring. Transferee shall contribute the Pool One Transferee Contribution to the Company/New Facility Owners and Transferor shall contribute the Pool One Transferor Contribution to the Company/New Facility Owners.
In connection with the Restructuring, on the Pool One Closing Date, Transferor and Transferee covenant and agree to enter into (or in Transferee’s case, cause its designated subsidiary to enter into) the amended and restated limited liability
company agreement of the Company in the form mutually agreed to by the parties (the “JV Agreement”), subject to changes requested by the Lender and approved by Transferor and Transferee in their reasonable discretion, which shall
amend and restate the existing limited liability company agreement of the Company and create a joint venture that will, upon the Pool One Closing and immediately following the Restructuring, directly or indirectly own the TRS, the New Pool One
Facility Owners and the New Pool One Facility Tenants. 
 (b) Upon the occurrence of the Pool Two Closing, Transferor and
Transferee shall take such steps as may be necessary to consummate the HUD Loan Assumptions. Transferee shall contribute the Pool Two Transferee Contribution to the Company/New Facility Owners and Transferor shall contribute the Pool Two Transferor
Contribution to the Company/New Facility Owners. In connection with the HUD Loan Assumptions, on the Pool Two Closing Date, Transferor and Transferee covenant and agree to amend or amend and restate the JV Agreement to address the HUD Loan
Assumptions and the Indianola Performance Escrow, as well as to accommodate any reasonable changes requested by HUD and approved by the Lender, Transferor and Transferee in their reasonable discretion. Following the Pool Two Closing, the Joint
Venture will, directly or indirectly own the TRS, the New Pool One Facility Owners and the New Pool One Facility Tenants, the Pool Two Facility Owners and the Pool Two Facility Tenants. 

  
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 (c) Simultaneously with the Pool One Closing, Transferor and Transferee shall cause the
Company to distribute the Pool One Transferor Distribution to Transferor. Simultaneously with the Pool Two Closing, Transferor and Transferee shall cause the Company to distribute the Pool Two Transferor Distribution, less the amount being placed
into the Indianola Performance Escrow, to Transferor. 
 Section 14.02 Termination of Existing Facility Documents.
On or prior to the occurrence of each Closing, Transferor shall cause each Facility Owner to terminate any management agreements affecting the applicable Facilities. 
 Section 14.03 New Facility Documents. 
 (a) Deed Conveyance of Real
Property. Upon the occurrence of each Closing, Transferor shall cause the applicable Facility Owners to transfer and convey to the applicable New Facility Owners, fee simple title in and to the Real Property (the “Deed
Transfers”). The Deed Transfers shall be made by special warranty deed in form customary for the jurisdiction in which the applicable Real Property is located and reasonably approved by Transferor and Transferee, subject to changes
requested by Lender and approved by Transferor and Transferee in their reasonable discretion. Each applicable Facility Owner shall further assign, transfer and convey to the applicable New Facility Owner, all right, title and interest of such
Facility Owner in and to any and all tangible and intangible personal property relating directly or indirectly to the applicable Real Property and/or Facility, except for the Retained Assets. Such assignment, transfer and conveyance of personal
property shall be made by bill of sale in form reasonably approved by Transferor and Transferee, subject to changes requested by Lender and approved by Transferor and Transferee in their reasonable discretion. 

(b) Operating Lease. Upon the occurrence of each Closing, Transferor and Transferee shall cause each applicable New Facility Owner
and New Facility Tenant to enter into a Lease substantially in the form mutually agreed to by the parties (each, an “Operating Lease”), subject to changes requested by Lender and approved by Transferor and Transferee in their
reasonable discretion and to changes agreed to by Transferor and Transferee in their reasonable discretion as necessary to conform to local law. 
 (c) Management Agreement. Upon the occurrence of each Closing, Transferor and Transferee shall cause each applicable New Facility Tenant to, enter into a Management Agreement for the management and
marketing services of the Facilities substantially in the form mutually agreed to by the parties (each, a “New Management Agreement”), subject to changes requested by the Lender and approved by Transferor and Transferee in their
reasonable discretion. 
 (d) Assignment of Contracts, Facility Agreements and Licenses. On the occurrence of each
Closing, Transferor shall or shall cause the applicable Facility Owners to enter into an Assignment and Assumption Agreement substantially in the form mutually agreed to by the parties (the “Assignment and Assumption Agreement”), to
the extent assignable, the 

  
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applicable Contracts, Facility Agreements, and Licenses approved by Transferee during the applicable Due Diligence Period, together with the Resident Agreements, to the applicable New Facility
Owners or New Facility Tenants as of such Closing Date, with Transferor being responsible for the payment of any fee or other charge imposed by any party in connection with such transfer. Notwithstanding the foregoing, on or before the termination
of the applicable Due Diligence Period, Transferee shall identify in writing to Transferor (i) which Contracts, Facility Agreements, and Licenses it agrees to assume, and (ii) any such Contracts, Facility Agreements, and Licenses it does
not agree to assume, and Transferor shall terminate such disapproved Contracts, Facility Agreements, and Licenses at its sole cost and expense as of the Closing Date. With respect to any equipment lease that New Facility Owners or New Facility
Tenants assume, it shall be a condition to such assumption that at least five (5) Business Days prior to the applicable Closing Date, the applicable Facility Owner will obtain and deliver to Transferee written statements from the equipment
lessors which demonstrate to Transferee’s satisfaction that (i) all payments under such equipment lease are current and that there are no charges owed, and (ii) the New Facility Owner and/or New Facility Tenant shall not be
responsible for the payment of any charges, penalties or other costs relating to damage, destruction or loss of such equipment, or a breach or violation of the terms of such equipment leases that occurred or became due prior to the applicable
Closing Date. Notwithstanding anything to the contrary, none of the Company, the New Facility Owners or the New Facility Tenants shall be responsible for the obligations under any Contracts, Facility Agreements, and Licenses that are not expressly
approved by Transferee in writing during the Due Diligence Period and assumed pursuant to an Assignment and Assumption Agreement. 
 (e) Manager Pooling Agreement. Upon the occurrence of the Pool One Closing, Transferor and Transferee shall cause each of the New Pool One Facility Tenants to enter into the Manager Pooling
Agreement substantially in the form mutually agreed to by the parties (the “Manager Pooling Agreement”), subject to changes requested by the Lender and approved by Transferor and Transferee in their reasonable discretion, to pool
revenues and expenses of the Pool One Facilities leased by such New Pool One Facility Tenants for purposes of, among other things, netting such revenues at one Facility against expenses at the other Facilities leased by such New Pool One Facility
Tenant. Upon the occurrence of the Pool Two Closing, the Transferor and Transferee shall cause the New Pool One Facility Tenants and the Pool Two New Facility Tenants to enter into an amendment to the Manager Pooling Agreement adding the Pool Two
New Facility Tenants and Pool Two New Facilities to the same. However, if the foregoing is not permitted by HUD, then Transferor and Transferee shall cause each of the Pool Two New Facility Tenants, to enter a Manager Pooling Agreement with respect
to the Pool Two Facilities and subject to changes requested by the Lender and approved by Transferor and Transferee in their reasonable discretion. 
 Section 14.04 Other Documents. 
 (a) Indemnification and
Contribution Agreement. At Closing, if guaranties are required from the Transferor, Transferee or any of their respective affiliates in connection with the closing of the Refinancing or the HUD Loan Assumption, Transferor and Transferee shall
cause the Transferee and Transferor guarantors of the loans (the “Loans”) evidenced by the Refinancing and/or the HUD Loan Assumptions (together, the “Guarantors”), respectively, to execute a Contribution and
Indemnification Agreement in the form mutually agreed to by the 

  
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parties (the “Indemnification and Contribution Agreement”), subject to (i) changes required to conform to the documents evidencing the Refinancing or the HUD Loan Assumption
and (ii) changes requested by the Lender and approved by Transferor and Transferee in their reasonable discretion, pursuant to which Transferee and the Guarantors set forth the rights of Guarantors against Transferee if Guarantors make payments
under any guarantees of the Loans and Guarantor set forth their understanding concerning the manner in which they will share liability between themselves if either pays more than their proportionate share of any obligation under any guarantees of
the Loans. 
 Section 14.05 Escrow. Transferee, Transferor shall cause their respective executed counterparts to the
JV Agreement, Operating Leases, Management Agreements, Manager Pooling Agreement, Indemnification and Contribution Agreement, together with any other applicable agreements, leases, certificates or other documents reasonably necessary to effectuate
the Restructuring and HUD Loan Assumptions and otherwise in form and substance reasonably acceptable to Transferor, Transferee and Manger and any additional documents required by Lender to implement the Refinancing and agreed to by Transferor and
Transferee in their reasonable discretion (collectively, the “Restructuring Documents”), to be deposited into escrow with Escrow Agent prior to each Closing pursuant to an escrow agreement and instruction letter mutually
satisfactory to Transferor and Transferee which shall provide that such documents shall be released from escrow and made effective upon the consummation of the applicable Closing. 

Article XV. 
 FEES
AND EXPENSES 
 Section 15.01 Fees and Expenses. 

(a) Except as otherwise specifically provided in this Agreement, Transferor and Transferee shall each pay the fees and expenses of their
own attorneys, accountants, financial advisors, investment bankers and employees in connection with the preparation and negotiation of this Agreement, all documents prepared and negotiated pursuant to this Agreement, and the Restructuring Documents
(collectively, the “Documents”) 
 (b) The fees and expenses of local counsel engaged to represent the Company
in connection with the Restructuring (“Local Counsel Costs”) shall be Shared Expenses borne in accordance with Section 15.06 below. 
 (c) Any Third-Party Costs incurred by Transferee, Transferor or their respective Affiliates shall be paid solely by Transferee or Transferor, as the case may be, unless such costs were required to be
incurred in connection with the Refinancing or the HUD Loan Assumption (collectively, the “Refinancing Third-Party Costs”), in which event such Refinancing Third Party Costs shall be borne in accordance with
Section 15.06 below. It is understood, acknowledged and agreed by Transferor and Transferee that, subject to Section 15.05 below, any Refinancing Third-Party Costs incurred in connection with the Refinancing shall be borne in
accordance with Section 15.05 below regardless of whether any such Refinancing Third-Party Costs would have been incurred by Transferee, Transferor or their respective Affiliates had there been no Refinancing. Any Third-Party Costs incurred by
Transferee which are not also Refinancing Third-Party Costs, shall be paid solely by Transferee 

  
 40 

 
and any Third-Party Costs incurred by Transferor which are not also Refinancing Third-Party Costs, shall be paid solely by Transferor. As used herein, the term “Third-Party
Costs” shall mean all third party (i.e., a party other than Transferee, Transferor or their respective Affiliates), out-of-pocket due diligence costs incurred in connection with the evaluation of the Real Property, the Facilities, the
Company and the Facility Owners, including, without limitation, surveys, soil tests, engineering tests or other tests, environmental studies, market studies, other studies, reports, and property appraisals. 

(d) Transferor shall be responsible for payment of the following items in connection with this transaction: (i) any costs in
exercising the purchase option with respect to the Nevada Facility; (ii) any costs associated with termination of the existing facility managers, and (iii) any governmental fees or expenses payable for the assignment, transfer or
conveyance of any Facility Contracts, Tenant Leases, Resident Agreements or Licenses and Permits. 
 Section 15.02 Title
Costs. The cost of the Title Commitments and the Title Policies (including any non-imputation endorsements and other customary endorsements thereto) and any escrow costs and other fees associated therewith (collectively, the “Title
Insurance Costs”) shall be Shared Expenses pursuant to Section 15.06 below. 
 Section 15.03
Transfer Taxes. Any real estate transfer taxes, fees or similar charges incurred in connection with the Restructuring (collectively, the “Transfer Taxes”) will be borne by the Transferor. 

Section 15.04 Prorations. The items of revenue and expense set forth in this Section 15.04 shall be prorated between
Transferor and Transferee (the “Prorations”) as of 11:59:59 p.m. on the day preceding the applicable Closing Date (the “Cut-Off Time”), or such other time expressly provided in this Section 15.04, so that the
Closing Date is a day of income and expense for Transferee. 
 (a) Taxes. All real property taxes and assessments (the
“Property Taxes”) shall be prorated as of the Cut-Off Time between The applicable Facility Owner and Transferee. If the amount of any such Property Taxes is not ascertainable on the Closing Date, the Proration for such Property
Taxes shall be based on the most recent available bill; provided, however, that after the Closing, the applicable Facility Owner and Transferee shall re-prorate the real property and related Property Taxes and pay any deficiency or excess in the
original proration to the other party promptly upon receipt of the actual bill for the relevant taxable period. Any additional taxes in the nature of “roll back” taxes or relating to the year of Closing arising out of a change in the use
of the real property and improvements or a change in ownership shall be paid by the applicable Facility Owner when due and payable, and the applicable Facility Owner and Transferor, jointly and severally, will indemnify Transferee from and against
any and all such Property Taxes, which indemnification obligation will survive the Closing. Transferor shall be entitled to any tax abatement rights and benefits with respect to the Pool One Facilities and the Pool Two Facilities to the extent the
same accrued prior to the contribution of the Pool One Facilities or Pool Two Facilities. This subparagraph shall survive Closing. 
 (b) Leases and Resident Agreements. Any rents and other amounts prepaid, accrued or due and payable under any leases or Residence Agreements shall be prorated as of the

  
 41 

 
Cut-Off Time between The applicable Facility Owner and Transferee. The Transferee shall receive a credit for all security deposits which are not transferred by the applicable Facility Owner to
Transferee. The Transferee shall not receive a credit for any security deposits held by the applicable Facility Owner which are transferred to Transferee at Closing. 
 (c) Utilities. All utility services shall be prorated as of the Cut-Off Time between the applicable Facility Owner and Transferee. The Parties shall use commercially reasonable efforts to obtain
readings for all utilities as of the Cut-Off Time. If readings cannot be obtained as of the Closing Date, the cost of such utilities shall be prorated between the applicable Facility Owner and Transferee by estimating such cost on the basis of the
most recent bill for such service; provided, however, that after the Closing, the parties shall re-prorate the amount for such utilities and pay any deficiency in the original proration to the other party promptly upon receipt of the actual bill for
the relevant billing period. The applicable Facility Owner shall receive a credit for all deposits transferred to Transferee or which remain on deposit for the benefit of Transferee with respect to such utility contracts. 

(d) All cash on hand, escrow and reserve accounts of Transferor or the Facility Owners, accounts receivable and accounts payable,
indebtedness or liabilities for the period prior to the Closing Date shall remain the property or responsibility, as applicable, of the Transferor and the applicable Facility Seller. Transferor and any applicable Facility Owner shall be responsible
for the payment of all expenses on account of services and supplies furnished to and for the benefit of the Facilities through and including the day preceding the Closing Date and Transferee shall be responsible for the payment of all expenses on
account of services and supplies furnished to and for the benefit of the Facilities from and including the Closing Date. 
 (e)
Re-Prorations. Notwithstanding anything to the contrary herein, if during the ninety (90) day period following the Closing Date, any party in its reasonable discretion believes the any of the Prorations as reflected on the Closing
Statement are not based on actual or accurate figures, such party shall have the right to request that such Prorations be re-prorated, and upon such request the parties agree in good faith to endeavor to accomplish such re-proration as soon as
practicable following such request. Any re-prorations shall be made in the same manner contemplated in this Section 15.04. This subparagraph shall survive Closing. The foregoing shall not apply to the proration of Property Taxes, which shall be
handled pursuant to Section 15.04(a) above. 
 Section 15.05 Other Closing Costs. Except as explicitly set
forth herein, all other costs, expenses and legal fees incurred by Transferee or Transferor in connection with the applicable Closing, including, without limitation, costs, expenses and legal fees incurred in connection with (i) the
Refinancing, and (ii) the issuance of the Licenses to the Company, the New Facility Tenants and/or the Facility Owners (collectively, the “Other Shared Closing Costs”), shall be Shared Expenses, pursuant to Section 15.06
below. 
 Section 15.06 Closing Cost Allocation. All Refinancing Third-Party Costs, Local Counsel Costs, Title
Insurance Costs, Transfer Taxes, Other Shared Closing Costs (other than costs of preparation and negotiation of the Documents which shall be borne by Transferor and Transferee as set forth in Section 15.01 above), Refinancing Fee or
Other Refinancing Fees and Expenses (the “Shared Expenses”) will be borne by Transferor and Transferee in accordance 

  
 42 

 
with their respective percentage interests in the Company following the Restructuring. Any payments by Transferor or Transferee in respect of any Shared Expenses shall be deemed capital
contributions of Transferor and Transferee, as applicable, under the JV Agreement. 
 Article XVI. 

REFINANCING AND HUD LOAN ASSUMPTIONS 
 Section 16.01 Cooperation. Transferor and Transferee will cooperate and use commercially reasonable efforts to secure the Refinancing and the HUD Loan Assumptions. The proceeds of the
Refinancing shall be utilized at Closing to repay in full the Existing Owner Financing encumbering the Pool One Facilities. 

Section 16.02 Financing Fees. Any (a) financing fee, extension fee, rate lock fee, interest rate breakage costs or other
similar fee in connection with the Refinancing or the HUD Loan Assumptions (a “Refinancing Fee”) required to be paid prior to a Closing, (b) Refinancing or HUD Loan Assumption Third-Party Costs and (c) any other fees and
expenses incurred in connection with the Refinancing or HUD Loan Assumptions (including, without limitation, any legal fees of a lender, any mortgage recordation or similar fees and any due diligence costs incurred by a lender) (collectively, the
“Other Refinancing Fees and Expenses”) shall be shall be Shared Expenses in accordance with Section 15.06 above. 
 Section 16.03 Refinancing Closing. The closing of the Refinancing and the Pool One Closing hereunder shall occur simultaneously. The closing of the HUD Loan Assumptions and the Pool Two
Closing hereunder shall occur simultaneously. At each Closing, Transferor and Transferee shall deliver, and shall cause the Company and its subsidiaries to deliver, those documents, instruments and other deliveries as are required to be delivered to
consummate the Refinancing or the HUD Loan Assumptions, as applicable, including, without limitation, any guaranties, to the extent reasonably acceptable to Transferor and Transferee, and any such documents shall constitute Restructuring Documents
hereunder. 
 Article XVII. 
 ASSUMED AND RETAINED LIABILITIES 
 Section 17.01 Retained Liabilities.
At each Closing, the applicable Facility Owners shall each retain all Liabilities for, and neither the Transferee nor the applicable New Facility Owner shall have any obligation or Liability concerning: 

(a) Matters Arising Prior to Closing Date. Any Liabilities under the Facility Agreements, Contracts, Residence Agreements, and
Licenses which have arisen, accrued or pertain to a period prior to the applicable Closing Date, including, without limitation, the Liability for the payment of any amounts due and payable or accrued but not yet due or payable prior to the Closing
Date under the Facility Agreements, Contracts, Residence Agreements, and Licenses as of such Closing Date; and 
 (b) Taxes
and Assessments. The payment of all Taxes and assessments due and payable or accrued with respect to the period prior to the applicable Closing Date but not yet paid prior to the applicable Closing Date, except to the extent Transferee has
received a credit for such Taxes and assessments at the applicable Closing; and 

  
 43 

 (c) Personal Injury. Any claim for personal injury to a Person which is based on any
event which occurred at a Facility prior to the applicable Closing Date; and 
 (d) Retained Assets. Any liability
associated with any of the items constituting Retained Assets (collectively, all items contained in this Section 17.01 being the “Retained Liabilities”). 
 The rights and obligations of the Parties under this Section 17.01 shall survive the Closings. 
 Section 17.02 Assumed Liabilities. At each Closing, the New Facility Owner shall assume (i) all Liabilities under the Facility Agreements, Contracts, Residence Agreements, and Licenses
that are not Retained Liabilities and which arise or accrue on or after the applicable Closing Date with respect to the applicable Facilities, and (ii) the payment of Taxes which arise or accrue on or after the applicable Closing Date
(“Assumed Liabilities”). 
 The rights and obligations of the Parties under this Section 17.02 shall
survive the Closings. 
 Article XVIII. 
 MISCELLANEOUS 
 Section 18.01 Further Actions. From time to time
before, at and after each Closing, each party, at its expense and without further consideration, will execute and deliver such documents as reasonably requested by any other party in order more effectively to consummate the transactions contemplated
hereby. 
 Section 18.02 Shenandoah Facility. Transferor and Transferee agree that, at such time as the Windsor
Manor of Shenandoah (the “Shenandoah Facility”) achieves eighty percent (80%) occupancy and a twenty-five percent (25%) Operating Margin for three (3) consecutive months Transferor and Transferee shall enter into a
transfer agreement for contribution of the Shenandoah Facility to the Company. Such transfer agreement shall contain the same terms and conditions as this Agreement (including, without limitation, due diligence rights), as if the Shenandoah Facility
were a third pool of facilities. The agreed-upon value of the Shenandoah Facility shall be Five Million Five Hundred Thousand Dollars ($5,500,000). Notwithstanding the contribution of the Shenandoah Facility to the Company, Transferor shall be
entitled to receive any rebate for property taxes with respect to its period of ownership prior to the contribution of the Shenandoah Facility to the Company. This provision shall expressly survive the Pool One Closing and Pool Two Closing. In the
event that the Shenandoah has not achieved the above-required Operating Margin by December 31, 2013, then the parties agree to discuss in good faith whether to proceed working towards closing on the Shenandoah Facility or to release each other
from any further obligations with respect to the same. 

  
 44 

 Section 18.03 Agreement. 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: 

 c/o HR
Green, Inc. 
 8710 Earhart Lane SW 
 Cedar Rapids, IA 52404 
 Attn.: Steven R. Heyer 

Telecopy No.: (319) 841-4012 
 Telephone No.: (319) 841-4403 
 E-Mail: sheyer@hrgreen.com 

with a copy to: 

c/o HR Green, Inc. 
 420 N. Front Street, Suite 100 
 McHenry, IL 60050 

Attn.: Scott L. Smith, Esq. 
 Telecopy No.: (815) 358-0988 
 Telephone No.: (815) 759-8354 

E-Mail: ssmith@hrgreen.com 
 with a copy to: 
 Simmons Perrine Moyer Bergman PLC 

115 Third Street SE, Suite 1200 
 Cedar Rapids, IA 52401 
 Attn.: Kathleen A. Kleiman, Esq. 

Telecopy No.: (319) 366-1917 
 Telephone No.: (319) 896-4027 
 E-Mail: kkleiman@simmonsperrine.com

  

	 	(b)	If to Transferee, to: 

 CHT
Partners, LP 
 CNL Center at City Commons 
 450 South Orange Ave. 
 Orlando, Florida 32801 

Attn.: Joseph T. Johnson, SVP and CFO and 
   Holly J. Greer, SVP and General Counsel 
 Telecopy No.: 407-540- 2544

 Telephone No.: 407-540-7618 (Johnson) 
   407-540-7546 (Greer) 
 E-Mail: hgreer@cnl.com 

 jjohnson@cnl.com 

  
 45 

 with a copy to: 
 Lowndes, Drosdick, Doster, Kantor & Reed, PA 
 450 S. Orange Avenue,
Suite 800 
 Orlando, Florida 32801 
 Attn.: John D. Ruffier, Esq. 
 Telecopy No.: 407-843-4444 

Telephone No.: 407-418-6414 
 E-Mail: john.ruffier@lowndes-law.com 
 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 18.04 Entire Agreement. This Agreement, the Access 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 18.05 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 18.06 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 18.07 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 Transferor 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 Transferor or Transferee hereunder
shall be true and correct in all material respects as applied to the applicable assignee, (ii) both Transferee or Transferee, 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 Transferee or Transferee, as applicable, and the assignee agree to be jointly and severally liable for 

  
 46 

 
performance of all of the applicable assignee’s obligations under this Agreement, (iii) Transferee or Transferor, as applicable, and the 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 or Transferor, as applicable, and the assignee and (iv) Transferor or Transferee,
as applicable, shall remain fully liable for its obligations under this Agreement. 
 Section 18.08 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; provided, however, that notwithstanding the foregoing, any matters relating
to real property shall be governed by the laws of the State of Iowa. 
 Section 18.09 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 18.10 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 18.11 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 18.12
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 18.13 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 18.14 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 18.15 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. 

  
 47 

 Section 18.16 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 EACH CLOSING (AND NOT BE MERGED THEREIN) OR ANY EARLIER TERMINATION OF THIS AGREEMENT. 

Section 18.17 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. 
 Section 18.18
Informational Meetings. Transferor and Transferee each agree to hold meetings with the other party at reasonable times and upon reasonable notice to review and discuss the status of this Agreement and the Refinancing. Such meetings shall be
held at the corporate headquarters of Transferor or Transferee or by telephone, as agreed to by the parties. 
 [SIGNATURES
FOLLOW ON NEXT PAGE] 

  
 48 

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

			
	TRANSFEROR:
	
	GCI DEVELOPMENT, LLC, an Iowa limited liability company
		
	By:	 	 /s/ Steven R. Heyer

			
	Name:	 	 Steven R. Heyer

			
	Title:	 	 President

  

			
	TRANSFEREE:
	
	CHT PARTNERS, LP, a Delaware limited partnership
		
	By:	 	CHT GP, LLC, a Delaware limited liability company, its general partner
		
	By:	 	CNL Healthcare Trust, Inc., a Maryland corporation, managing member of general partner
		
	By:	 	 /s/ Holly J. Greer

	Name: Holly J. Greer
	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 Marti

			
		
	Name:	 	 Keren Marti

			
		
	Title:	 	 Vice PresidentAmended and Restated Limited Liability Company Agreement

 Exhibit 10.2 
 AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 
 OF 

CHT GCI PARTNERS I, LLC 
 THE INTERESTS OF THE MEMBERS ISSUED UNDER THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR THE DISTRICT OF COLUMBIA. NO RESALE OR TRANSFER
OF AN INTEREST BY A MEMBER IS PERMITTED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT AND ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND ANY VIOLATION OF SUCH PROVISIONS COULD EXPOSE THE SELLING OR TRANSFERRING MEMBER AND THE
COMPANY TO LIABILITY. 
 Dated as of August 31, 2012 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	  
	 1.1
	 	 Definitions
	  	 	1	  
	 1.2
	 	 General Interpretive Principles
	  	 	14	  
		
	 ARTICLE 2 THE COMPANY AND ITS BUSINESS
	  	 	15	  
	 2.1
	 	 Company Name
	  	 	15	  
	 2.2
	 	 Term
	  	 	15	  
	 2.3
	 	 Filing of Certificate and Amendments
	  	 	15	  
	 2.4
	 	 Business; Scope of Members’ Authority
	  	 	16	  
	 2.5
	 	 Principal Office; Registered Agent
	  	 	16	  
	 2.6
	 	 Authorized Persons
	  	 	16	  
	 2.7
	 	 Representations by Members
	  	 	16	  
	 2.8
	 	 Organization Expenses
	  	 	17	  
	 2.9
	 	 Securities Laws Restrictions
	  	 	17	  
		
	 ARTICLE 3 MANAGEMENT OF COMPANY BUSINESS
	  	 	17	  
	 3.1
	 	 Appointment of Managing Member
	  	 	17	  
	 3.2
	 	 Duties of Managing Member
	  	 	17	  
	 3.3
	 	 Bank Accounts
	  	 	18	  
	 3.4
	 	 Reimbursement for Costs and Expenses
	  	 	18	  
	 3.5
	 	 Major Decisions
	  	 	18	  
	 3.6
	 	 Facilities Manager
	  	 	19	  
	 3.7
	 	 Future Development Opportunities
	  	 	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
	  	 	22	  
	 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	  
		
	 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
	  	 	25	  
	 6.1
	 	 Initial Capital Contributions of the Members
	  	 	25	  
	 6.2
	 	 GCI Excess Equity Amount
	  	 	25	  

  
 i 

							
	 6.3
	 	Capital Calls	  	 	25	  
	 6.4
	 	Reimbursements	  	 	26	  
	 6.5
	 	Remedies for Failure to Fund Capital Contributions	  	 	26	  
	 6.6
	 	Capital of the Company	  	 	27	  
	 6.7
	 	Limited Liability of Members	  	 	27	  
	 6.8
	 	Refinancing	  	 	28	  
		
	ARTICLE 7 CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS	  	 	28	  
	 7.1
	 	Capital Accounts	  	 	28	  
	 7.2
	 	General Allocation Rules	  	 	29	  
	 7.3
	 	Special Allocations	  	 	30	  
	 7.4
	 	Income Tax Elections	  	 	33	  
	 7.5
	 	Income Tax Allocations	  	 	33	  
	 7.6
	 	Transfers During Fiscal Year	  	 	34	  
	 7.7
	 	Election to be Taxed as Association	  	 	34	  
	 7.8
	 	Assignees Treated as Members	  	 	34	  
		
	ARTICLE 8 DISTRIBUTIONS OF NET OPERATING CASH FLOW AND CAPITAL PROCEEDS	  	 	34	  
	 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	  	 	36	  
	 8.5
	 	Liquidation	  	 	36	  
	 8.6
	 	GCI Excess Equity Amount	  	 	36	  
		
	ARTICLE 9	  	 	36	  
		
	DISPOSITION OF INTERESTS	  			
	 9.1
	 	Limitations on Assignments of Interests by Members	  	 	36	  
	 9.2
	 	Assignment Binding on Company	  	 	37	  
	 9.3
	 	Substituted Members	  	 	37	  
	 9.4
	 	Acceptance of Prior Acts	  	 	38	  
	 9.5
	 	Permitted Transfers	  	 	38	  
		
	ARTICLE 10 DISSOLUTION OF THE COMPANY; WINDING UP AND DISTRIBUTION OF ASSETS	  	 	39	  
	 10.1
	 	Dissolution	  	 	39	  
	 10.2
	 	Winding Up	  	 	40	  
	 10.3
	 	Distribution of Assets	  	 	40	  
		
	ARTICLE 11 AMENDMENTS	  	 	41	  
	 11.1
	 	Amendments	  	 	41	  
	 11.2
	 	Additional Members	  	 	41	  
	 11.3
	 	Documentation	  	 	41	  

  
 ii 

							
		
	ARTICLE 12 BUY-SELL; RIGHT OF FIRST OFFER	  	 	41	  
	 12.1
	 	Buy Sell	  	 	41	  
	 12.2
	 	Right of First Offer	  	 	42	  
	 12.3
	 	Closing.	  	 	43	  
	 12.4
	 	Release from Guaranties	  	 	45	  
	 12.5
	 	Enforcement	  	 	45	  
	 12.6
	 	Refinancing	  	 	45	  
		
	ARTICLE 13 MISCELLANEOUS	  	 	45	  
	 13.1
	 	Further Assurances	  	 	45	  
	 13.2
	 	Notices	  	 	46	  
	 13.3
	 	Headings and Captions	  	 	47	  
	 13.4
	 	Variance of Pronouns	  	 	47	  
	 13.5
	 	Counterparts	  	 	47	  
	 13.6
	 	Governing Law; Litigation, Jurisdiction and Waiver of Jury Trial	  	 	48	  
	 13.7
	 	Arbitration	  	 	48	  
	 13.8
	 	Partition	  	 	50	  
	 13.9
	 	Invalidity	  	 	50	  
	 13.10
	 	Successors and Assigns	  	 	50	  
	 13.11
	 	Entire Agreement	  	 	50	  
	 13.12
	 	Waivers	  	 	51	  
	 13.13
	 	No Brokers	  	 	51	  
	 13.14
	 	Confidentiality	  	 	51	  
	 13.15
	 	No Third Party Beneficiaries	  	 	51	  
	 13.16
	 	Power of Attorney	  	 	51	  
	 13.17
	 	Invalidity	  	 	52	  
	 13.18
	 	Construction of Documents	  	 	52	  

  

			
	 Schedule 1.1
	    	List of Facilities
	 Schedule 3.5
	    	Major Decisions
	 Schedule 3.7
	    	Future Development Opportunities; Definition of Operating Margin
	 Schedule 6.1
	    	Initial Capital Contributions; Percentage Interests of the Members
	 Exhibit A
	    	Annual Budget
	 Exhibit B
	    	Indemnification and Contribution Agreement

  
 iii

 THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this
“Agreement”) of CHT GCI PARTNERS I, LLC, a Delaware limited liability company (the “Company”) is entered into effective as of August 31, 2012 (the “Effective Date”), by and among CHT WINDSOR
MANOR AL HOLDING, LLC, a Delaware limited liability company (“CHT”), and GCI DEVELOPMENT, LLC, an Iowa limited liability company (“GCI”). 
 RECITALS 
 WHEREAS, the Company was formed by GCI, as the sole member, pursuant to
a Limited Liability Company Agreement dated as of July 25, 2012 (the “Original Agreement”) by filing a Certificate of Formation with the Secretary of State of the State of Delaware on July 25, 2012. 

WHEREAS, pursuant to, and as set forth in, the Transfer Agreement (as hereinafter defined), (i) CHT has acquired seventy-five
percent (75%) of the limited liability company interests in the Company, and (ii) the Company has acquired certain assets of the Facilities listed on Schedule 1.1 of this Agreement. 

WHEREAS, the parties desire to enter into this Agreement to amend and restate the Original Agreement to (i) reflect, among other
things, the admission of CHT as a member, (ii) set forth and agree upon their respective rights, duties and responsibilities with respect to the management and affairs of the Company, and (iii) to memorialize certain other agreements
between them with respect to the Company and their interests therein. 
 NOW, THEREFORE, in order to carry out their intent as
expressed above and in consideration of the mutual agreements hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby amend and restate the Original Agreement
in its entirety as follows: 
 ARTICLE 1 
 DEFINITIONS 
 1.1 Definitions. As used in this Agreement, the
following terms shall have the meanings set forth below, which meanings shall be applicable equally to the singular and plural of the terms defined: 
 “AAA” shall have the meaning set forth in Section 13.7(a). 

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

“Act” shall mean the Delaware Limited Liability Company Act (6 Del. C. §18-101 et seq.), as amended from
time to time. 
 “Adjusted Basis” shall mean the basis for determining gain or loss for federal income tax
purposes from the sale or other disposition of property, as defined in Section 1011 of the Code. 

  
 1 

 “Adjusted Capital Account Deficit” shall mean, with respect to any Member,
the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: 
 (a) Credit to such Capital Account any amounts which such Member is obligated to restore or is deemed to be obligated to restore pursuant to Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and

 (b) Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4) (reasonably expected adjustments
for depletion allowances), 1.704-1(b)(2)(ii)(d)(5) (certain other reasonably expected allocations of loss or deduction), and 1.704-1(b)(2)(ii)(d)(6) (reasonably expected distributions) of the Regulations. 

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

“Affiliate” means a Person, which controls, is controlled by, or is under common control with another Person. For the
purposes of this definition, “control” means the power to direct the management and policies of a Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract or otherwise;
and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. A Person shall not be deemed to be under common “control” with another Person solely based on the fact that one or more
Person(s) serve as a director of both Persons. 
 “Affiliate Guaranties” or “Affiliate Guaranty”
means a customary indemnity or carve-out guaranty, (or guaranties) or similar limited recourse undertakings (that may spring into full recourse in certain limited carve-out events) made by CHT Guarantor and/or GCI Guarantor for the benefit of a
Lender relating to a Refinancing (including, without limitation, with respect to each Facility (a) a recourse liabilities guaranty made by CHT Guarantor and GCI Guarantor for the benefit of the Lender, dated as of the date hereof; and
(b) an environmental and/or ERISA indemnity agreement, as applicable, made by CHT Guarantor, GCI Guarantor and the applicable Facility Entity and Operating Lessee for the benefit of Lender, dated as of the date hereof) or under any future
refinancing approved by all the Members pursuant to Section 3.5 of this Agreement. 
 “Agreement” shall
mean this Amended and Restated Limited Liability Company Agreement of the Company, as it may hereafter be amended or modified from time to time. 
 “Annual Budget” shall have the meaning set forth in the Management Agreement/ or means the budget with respect to the Facilities approved by the Members as of the Effective Date and each
year thereafter in accordance with Section 5.5. 
 “Appointed Arbitrator” shall have the meaning set forth
in Section 13.7(b). 
 “Arbitration Notice” shall have the meaning set forth in Section 13.7(b).

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

  
 2 

 “Assignee” shall mean a Person to whom an Interest has been transferred in
accordance with this Agreement and who has not been admitted as a Member. 
 “Bankruptcy” shall mean, with
respect to the affected party, (a) the entry of an order for relief under the Bankruptcy Code, (b) the admission by such party of its inability to pay its debts as they mature, (c) the making by it of an assignment for the benefit of
creditors, (d) the filing by it of a petition in bankruptcy or a petition for relief under the Bankruptcy Code or any other applicable federal or state bankruptcy or insolvency statute or any similar law, (e) the application by such party
for the appointment of a receiver for the assets of such party, (f) the filing of an involuntary Bankruptcy petition against it that is not dismissed for 60 or more days, or (g) the imposition of a judicial or statutory lien on all or a
substantial part of its assets. With respect to a Member, this definition of Bankruptcy supersedes the definition of Bankruptcy set forth in Sections 18-101(1) and 18-304 of the Act. 

“Bankruptcy Code” shall mean Title 11 of the United States Code, as amended from time to time. 

“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 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). 
 “Capital Account” when used in respect of any Member shall mean the Capital Account maintained for such Member in accordance with Section 7.1, as said Capital Account may be
increased or decreased from time to time pursuant to the terms of Section 7.1. 
 “Capital Call” shall
mean any written notice given to the Members pursuant to Article 6, in accordance with the requirements of Section 13.2, requesting a Capital Contribution that is required to be made by the Members pursuant to said Article 6. 

“Capital Contribution” when used with respect to any Member, shall mean (i) the initial Capital Contribution of
such Member as set forth on Schedule 6.1 attached hereto, and (ii) any additional capital contributed to the Company by such Member (and, for clarification, shall not include any consideration paid by a Member to another Member for its
Interest). 
 “Capital Proceeds” shall mean funds of the Company arising from a Capital Transaction, net of the
actual costs incurred by the Company with third parties in consummating the Capital Transaction. 
 “Capital
Transaction” shall mean any of the following: (a) a sale, exchange, transfer, assignment or other disposition of all or a portion of a direct or indirect interest (i.e., equity in a Subsidiary) in any Company Asset other than
(i) tangible personal property that is not sold or transferred in connection with the sale or transfer of real property or (ii) a leasehold interest in real property that is otherwise sold or transferred in the ordinary course of business;
(b) any condemnation or deeding in lieu of condemnation of all or a portion of any Company 

  
 3 

 
Asset used for restoration of the Facility; (c) any financing or refinancing of any Company Asset; (d) the receipt of proceeds due to any fire or other casualty to any Company Asset;
and (e) any other transaction involving a Company Asset, the proceeds of which, in accordance with GAAP, are considered to be capital in nature. For purposes of distributions under Section 8.2, net proceeds from a Capital Transaction shall
only include those distributions to be made to the Members under this Agreement after any third party payments relating to the Capital Transaction have been made. 
 “Carrying Value” shall mean, with respect to any asset, the Adjusted Basis of the asset, except as follows: 
 (a) the initial Carrying Value of an asset contributed by a Member to the Company shall be the gross fair market value of the asset, as determined and agreed upon by the Members at the time the asset is
contributed; 
 (b) The Carrying Values of the Company’s assets shall be adjusted to equal their respective gross fair
market values, as determined by the Managing Member as of the following times: (i) the acquisition of an additional interest in the Company by any new or existing Assignee or Member in exchange for more than a de minimis Capital Contribution;
(ii) the distribution by the Company to a Member or an Assignee of more than a de minimis amount of property as consideration for all or part of a Member’s Interest or an Assignee’s economic rights; and (iii) the liquidation of
the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); but adjustments pursuant to clauses (i) and (ii) above shall be made only if the Managing Member reasonably determines that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members in the Company; 
 (c) The Carrying Value of an asset of
the Company distributed to a Member shall be adjusted to equal the gross fair market value of the asset on the date of distribution as determined by the Managing Member; and 
 (d) The Carrying Values of the Company’s assets shall be increased (or decreased) to reflect any adjustments to the Adjusted Basis of those assets pursuant to Sections 734(b) or 743(b) of the Code,
but only to the extent that those adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-l(b)(2)(iv)(m); but the Carrying Values shall not be adjusted pursuant to this clause (d) to the
extent the Managing Member determines that an adjustment pursuant to clause (b) above is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d). 

If the Carrying Value of an asset is determined or adjusted pursuant to clauses (a), (b) or (d), such Carrying Value shall
thereafter be adjusted by the Depreciation taken into account with respect to the asset for purposes of computing Profit and Loss. 
 “Certificate of Formation” shall mean the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware on July 25, 2012, as the same may
hereafter be amended and/or restated from time to time. 

  
 4 

 “CHT” 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. 

“CHT Guarantor” shall mean CHT REIT or another Affiliate of CHT acceptable to the Lender. 

“CHT Operating Partnership” means CHT Partners, LP, a Delaware limited partnership. 

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

“CHT Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the extent resulting from gross negligence,
willful misconduct or fraud of CHT or any Affiliate of CHT. 
 “CHT REIT” shall mean CNL Healthcare Trust,
Inc., a Maryland corporation. 
 “Claim” shall mean any claim or demand for payment made by a Lender to a CHT
Guarantor or GCI Guarantor under any of the Affiliate Guaranties. 
 “Closing Date” shall have the meaning set
forth in Section 12.3(a). 
 “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 immediately following 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. 

“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). 

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

  
 5 

 “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% Cumulative Return” means, (i) for CHT, as of any date, the amount, if any, that would be required to be
distributed on such date so that the aggregate distributions to CHT pursuant to Section 8.1(a), Section 8.1(c), Section 8.2(a) and Section 8.2(c) provide a cumulative, annually compounded return of 11% per annum on
CHT’s Capital Contributions to the Company, and (ii) for GCI, as of any date, the amount, if any, that would be required to be distributed on such date so that the aggregate distributions to GCI pursuant to Section 8.1(b),
Section 8.1(c), Section 8.2(b) and Section 8.2(c) provide a cumulative, annually compounded return of 11% per annum on GCI’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. 

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

“Facilities” shall mean, collectively, the assisted living facilities listed on Schedule 1.1 

“Facility” shall mean each 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 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) an Operating Lease and
(d) all other agreements relating to the Facility. 
 “Facility Entities” shall mean, collectively, every
Subsidiary which owns a fee interests in a Facility. 
 “Facility Entity” shall mean each Subsidiary which owns
the fee interest in a Facility, including, without limitation, any Subsidiary formed by the Company pursuant to this Agreement or the Transfer Agreement for the purpose of acquiring, owning, developing, financing, constructing, operating and/or
selling a Facility. 
 “Facility Manager” shall mean Provision Living, LLC, a Missouri limited liability
company, or any successor manager under a Management Agreement. 

  
 6 

 “FFE Reserve” shall have the meaning set forth in the Management
Agreements. 
 “Financing” shall mean the new mortgage indebtedness secured by the Facilities, issued on or
about the Effective Date, as evidenced by the Loan Agreement and certain additional loan documents made by the respective Facility Entities and Operating Lessees of the Facilities with respect to the Financing as of the date hereof. The Financing is
sometimes referred to herein as the “Refinancing.” 
 “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. 
 “GAAP” shall mean generally accepted accounting principles in the United States of America. 
 “GCI” 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. 
 “GCI Contributed Assets” shall mean
certain assets of the Facilities contributed by GCI to the Company pursuant to, and as set forth in, the Transfer Agreement. 

“GCI Excess Equity Amount” shall mean the amount by which the value of the GCI Contributed Assets as set forth in
Schedule R-H of the Transfer Agreement, less any closing prorations and less GCI’s 25% of Shared Expenses (as defined in the Transfer Agreement) for the Pool One Closing (as defined in the Transfer Agreement) exceeds GCI’s Capital Account
credit as set forth in Section 6.1(b). 
 “GCI Guarantor” shall mean Green Companies or another Affiliate
of GCI acceptable to the Lender. 
 “GCI Person” shall mean GCI or an Affiliate of GCI. 

“GCI Recourse Claim” shall mean a Claim made under an Affiliate Guaranty to the extent resulting from the gross
negligence, willful misconduct or fraud of a GCI Guarantor or any Affiliate of a GCI Guarantor. 
 “Green
Companies” shall mean Green Companies, Inc., an Iowa corporation. 
 “Improvements” shall mean all
structures and buildings located on the Properties. 
 “Independent Accountant” shall mean an accounting firm
jointly agreed upon by the Members. The Members hereby acknowledge that they shall give preference to one of the following accounting firms as the Independent Accountant: Ernst & Young, PricewaterhouseCoopers, KPMG, or Deloitte Touche.

  
 7 

 “Indemnified Person” shall have the meaning set forth in
Section 4.3(a). 
 “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 CHT shall include CHT’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 KeyBank, National Association, a national banking association, 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). 
 “Liquidity
Event” means any merger, reorganization, business combination, share exchange, acquisition by any Person or related group of Persons of beneficial ownership of all or substantially all of the equity shares of a Member in one or more related
transactions, or other similar transaction involving a Member pursuant to which Member’s stockholders receive for their equity shares, as full or partial consideration, cash, listed or non-listed equity securities or combination thereof, or a
sale of all or substantially all of the assets of a Member. 
 “Loan Agreement” shall mean that certain loan
agreement, dated as of the date hereof, among the Facility Entities, Operating Lessees and the Lender, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“Loan Documents” shall mean the documents evidencing the Financing, and any future refinancing thereof. 

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

  
 8 

 “Management Agreement” shall mean with respect to each Facility, a
Management Services Agreement among the Facility Manager and the applicable Operating Lessee, each such Management Agreement having been executed or to be executed in connection with the management of a Facility, as it may hereafter be amended or
modified from time to time. 
 “Manager Pooling Agreement” shall mean that certain Pooling Agreement by and
among all of the Operating Lessees and the Facility Manager 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. 

“Managing Member” shall mean CHT. 
 “Mandatory Capital Contribution” shall have the meaning set forth in Section 6.3. 
 “Material Contract” shall mean any contract, lease, license or other agreement pursuant to which either: (a) the Company is obligated to pay or expend more than $50,000 in any Fiscal
Year or (b) a Member or an Affiliate of a Member is a party. 
 “Member” shall mean each of CHT (in its
capacity as Managing Member and otherwise) and GCI, 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). 

  
 9 

 “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 Refinancing 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 Properties), and
which, in each case, have been finally adjudicated, (v) any amounts required to be withheld pursuant to Section 1446 of the Code (or similar provisions of state or local law), (vi) amounts currently due and payable, or to become due
and payable within thirty (30) days, under any leases, service contracts or other agreements or contractual obligations (to the extent not entered into in violation of this Agreement) to which the Company or any of the Subsidiaries is a party
or obligor, whether or not the same are categorized for accounting purposes as ordinary operating expenses or capital improvements, and (vii) other amounts that are required to be paid in the event of an emergency. 

“Nonrecourse Deductions” shall have the meaning set forth in Regulations Section 1.704-2(b)(1). The amount of
Nonrecourse Deductions for a Fiscal Year equals the excess, if any, of the net increase, if any, in the amount of Company Minimum Gain during that Fiscal Year over the aggregate amount of any distributions during that Fiscal Year of proceeds of a
Nonrecourse Liability that are allocable to an increase in Company Minimum Gain, determined according to the provisions of Section 1.704-2(c) of the Regulations. 
 “Nonrecourse Liability” shall have the meaning set forth in Sections 1.704-2(b)(3) and 1.752-1(a)(2) of the Regulations. 

“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). 

“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). 

  
 10 

 “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: Vinton IA Assisted Living Tenant, LLC; Webster City IA Assisted Living Tenant, LLC and Nevada IA Assisted Living Tenant, LLC. 
 “Operating Lessees” shall mean Vinton IA Assisted Living Tenant, LLC; Webster City IA Assisted Living Tenant, LLC and Nevada IA Assisted Living Tenant, LLC, collectively. 

“Organizational Document” shall mean, with respect to any Person: (a) in the case of a corporation, such
Person’s certificate of incorporation and by-laws, and any shareholder agreement, voting trust or similar arrangement applicable to any of such Person’s authorized shares of capital stock; (b) in the case of a partnership, such
Person’s certificate of limited partnership, partnership agreement, voting trusts, statement of qualification or similar arrangements applicable to any of its partnership interests; (c) in the case of a limited liability company, such
Person’s certificate of formation or articles of organization, limited liability company operating agreement or other document affecting the rights of holders of limited liability company interests; or (d) in the case of any other legal
entity, such Person’s organizational documents and all other documents affecting the rights of holders of equity interests in such Person. 
 “Partially Adjusted Capital Account” shall mean, with respect to any Member for any Fiscal Year, the Capital Account balance of such Member at the beginning of such period, adjusted as
set forth in the definition of Capital Account for all contributions and distributions during such period and all special allocations pursuant to Section 7.3 with respect to such period but before giving effect to any allocation with respect to
such period pursuant to Section 7.2. 
 “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: 
 (a) Any income of the Company that is exempt from federal income
tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss; 

  
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 (b) Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated
as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss; 

(c) In the event the Carrying Value of any Company Asset is adjusted pursuant to subparagraph (b) or subparagraph (c) of the
definition of Carrying Value herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; 

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

(e) In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or
loss, there shall be taken into account Depreciation for such Fiscal Year or other period, computed in accordance with the terms of this Agreement; and 
 (f) Notwithstanding any other provision of this Agreement, any items which are specially allocated pursuant to Section 7.3 shall not be taken into account in computing Profits or Losses. In addition,
any items which are specially allocated pursuant to Sections 7.2(a) or 7.2(b) shall not be taken into account in computing Profits and Losses for purposes of Section 7.2(c). 

“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. 

“Purchaser” shall have the meaning set forth in Section 12.3(a). 

“Regulations” shall mean the permanent and temporary regulations, and all amendments, modifications and supplements
thereof, from time to time promulgated by the Department of the Treasury under the Code. 
 “Rejection Notice”
shall have the meaning set forth in Section 12.2(a). 
 “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. 
 “ROFO Amount” shall have the
meaning set forth in Section 12.2(a). 
 “ROFO Closing Date” shall have the meaning set forth in Section
12.3(a). 

  
 12 

 “ROFO Recipient” shall have the meaning set forth in Section 12.3(a).

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

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

“Seller” shall have the meaning set forth in Section 12.3(a). 

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

“Subsidiary” shall mean any entity in which the Company holds any ownership interests, whether directly or indirectly
through one or more Persons. 
 “Substituted Member” shall mean any Person admitted to the Company as a Member
pursuant to the provisions of Section 9.3. 
 “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. 

“Third Party Costs and Expenses” shall mean, with respect to each Claim made against a GCI Guarantor or a CHT Guarantor,
as applicable, the reasonable third party costs and expenses actually incurred by a GCI Guarantor or a CHT Guarantor, as applicable, in connection with such Claim, including, without limitation, reasonable costs and expenses (including legal fees
and expenses) of settlement discussions, litigation, arbitration, mediation or other proceedings relating to the Claim. 

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

  
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 “Transfer Agreement” means that certain Transfer Agreement dated as of
August 31, 2012 between GCI and CHT Operating Partnership, as the same may be amended. 
 “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). 

“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). 
 “Vinton Facility” shall mean the Facility known as Windsor Manor of Vinton described
on Schedule 1.1 attached hereto. 
 “Webster City Facility” shall mean the Facility known as Windsor
Manor of Webster City described on Schedule 1.1 attached hereto. 
 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. 

  
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 (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. 

(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 “CHT GCI PARTNERS I, LLC” in the State of Delaware and under such name or such assumed names as the
Managing Member deems necessary or appropriate to comply with the requirements of any other jurisdiction in which the Company may be required to qualify. 
 2.2 Term. The term of the Company shall have commenced on the date of the filing of the Certificate of Formation with the State of Delaware and shall continue in full force and effect until it is
dissolved and its affairs wound up in accordance with the terms of this Agreement and the applicable provisions of the Act. (“Term”). 
 2.3 Filing of Certificate and Amendments. The Certificate of Formation was filed with the Secretary of State of the State of Delaware. The Managing Member hereby agrees to cause the execution and
filing of any required amendments to the Certificate of Formation and shall do all other acts requisite for the constitution of the Company as a limited liability company pursuant to the laws of the State of Delaware or any other applicable law.

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

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 

  
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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 CHT Person or a GCI Person on or prior to the Effective Date shall be expenses of the Company; provided, that, the Members
acknowledge that certain expenses incurred prior to the Effective Date shall be governed in accordance with the Transfer Agreement. 
 2.9 Securities Laws Restrictions. The Interests have not been registered under the Securities Act of 1933, as amended, or under the securities laws of the State of Delaware or any other
jurisdiction. Consequently, the Interests may not be sold, Transferred, assigned, pledged, hypothecated or otherwise disposed of, except in accordance with the provisions of such laws and this Agreement. 

ARTICLE 3 

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

3.2 Duties of Managing Member. Subject to obtaining the unanimous consent of the Members to all Major Decisions as set forth in
Section 3.5, the Managing Member will have the authority and the duty to manage the Company and implement the purposes of the Company in accordance with the terms of this Agreement acting in a prompt and businesslike manner, and
exercising such care and skill as a prudent owner with sophistication and experience in owning, operating and managing facilities similar to the 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. 

  
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 (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. 

(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 Annual Budget, the Managing Member will fix the amounts, if any, which the Company will reimburse each Member for any costs and
expenses incurred by such Member on behalf and for the benefit of the Company; provided, however, that except as otherwise provided herein or in any separately-executed agreement relating to the business and operation of the Company, no overhead or
general administrative expenses of any Person other than the Company itself shall be allocated to the operation of the Company. The Managing Member in its capacity as Managing Member and not in its capacity as a Member shall not be entitled to any
fee or compensation for performing its duties and obligations under this Agreement. 
 3.5 Major Decisions. All of the
actions listed on Schedule 3.5 (“Major Decisions”), shall require the written approval of all Members, which approval shall be in the sole discretion 

  
 18 

 
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 together with sufficient information to enable the receiving Member to consider the terms of the Major Decision being proposed
requesting the approval of such Major Decision; if a Member fails to respond to such request after five (5) Business Days from receipt of the notice (or such longer time as expressly provided for in the notice), the proposing Member shall send
another written notice (designated as “Second Notice”) to the other Member and if such Member fails to respond to such second request after five (5) Business Days from receipt of the notice (or such longer time as expressly
provided for in the notice), such Member will be deemed to have approved the Major Decision set forth in such notice. If CHT approves, or is deemed to approve, a Major Decision proposed by GCI pursuant to this Section 3.5, CHT, in its capacity
as Managing Member, shall be obligated to carry out the action that constitutes such Major Decision. 
 3.6 Facilities
Manager. The Company will engage Provision Living, LLC as the Facility Manager of the Facilities, pursuant to Management Agreements approved by the Members. The Facility Manager shall at all times be an “eligible independent
contractor” as such term is defined in the Code. At such time, if any, as Provision Living, LLC does not qualify as an “eligible independent contractor” within the meaning of the Code, the Members shall engage a new Facility Manager.

 3.7 Future Development Opportunities. The Members intend to cause the Company to develop and own additional assisted
living facilities (“Windsor Manor Communities”). So long as the Facility Manager is in good standing with no uncured defaults under the Management Agreements, the Company will use commercially reasonable efforts to engage Provision
Living, LLC as the Facility Manager of these future Windsor Manor Communities after the Company acquires the properties. The Company shall also be obligated to use the services of HR Green Company, Inc. at its then current standard billing rates for
any design, engineering, architectural or related professional services needed for the Windsor Manor Communities or for any renovations, remodeling or expansion of any existing Facility; provided, however, that such rates shall be consistent with
market rates for the applicable area and all agreements contain commercially reasonable terms. The purchase price for any future Windsor Manor Communities shall include, but not be limited to, the cost of time (at standard billing rates) and
materials of land acquisition, design, and construction, plus a twelve percent (12%) research and development fee to be paid to GCI and shall be memorialized in a separate agreement approved by the Members prior to commencement of land
acquisition activities for a future Windsor Manor Community. GCI shall be responsible for the research and study related to the establishment of future Windsor Manor Communities. The decision to proceed with the development of any future Windsor
Manor Community shall be made jointly by both CHT and GCI. CHT and GCI each agree that neither the Company, GCI, CHT nor their Affiliates shall have any obligation to develop and own additional properties in the future, including without limitation,
future Windsor Manor Communities. However, if both CHT and GCI agree that the Company will develop a new Windsor Manor Community, then GCI will be able to rely on a written commitment from the Company that the Company will purchase the subject
property 

  
 19 

 
upon achieving eighty percent (80%) occupancy and twenty five percent (25.0%) operating margin, as defined in Schedule 3.7, for one month. Notwithstanding anything contained
herein to the contrary, it is agreed that GCI shall have no obligation to develop Windsor Manor Communities exclusively for the Company and shall be free to develop, build and operate other Windsor Manor Communities or other assisted living
facilities for any other party without having any obligation to offer such opportunities to the Company or CHT for development or purchase. 
 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, senior living facilities and related services, and/or assisted living services 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, members, employees, incorporators, agents, affiliates or controlling Persons (an “Indemnified Person”), become 

  
 20 

 
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 Indemnified Person may become subject in connection with any matter arising out of or in connection with the Company’s business or affairs, except to the extent that any such Costs result solely from
the gross negligence, fraud, or willful misconduct of such Indemnified Person. If for any reason (other than the gross negligence, fraud, or willful misconduct of such Indemnified Person) the foregoing indemnification is unavailable to such
Indemnified Person, or insufficient to hold it harmless, then the Company shall contribute to the amount paid or payable by such Indemnified Person as a result of such Costs in such proportion as is appropriate to reflect not only the relative
benefits received by the Company on the one hand and such Indemnified Person on the other hand but also the relative fault of the Company and such Indemnified Person, as well as any relevant equitable considerations. The reimbursement, indemnity and
contribution obligations of the Company under this Section 4.3 shall be in addition to any liability which the Company may otherwise have to any Indemnified Person and shall be binding upon and inure to the benefit of any successors, assigns,
heirs and personal representatives of the Company and any Indemnified Person. The reimbursement, indemnity and contribution obligations of the Company under this Section 4.3 shall be limited to the Company Assets, and no Member shall have any
personal liability on account thereof. The foregoing provisions shall survive any termination of this Agreement. 
 (b) To the
fullest extent permitted by law, each Member shall defend and indemnify the Company and the other Members against, and shall hold it and them harmless from, any Costs as and when incurred by the Company or the other Members in connection with or
resulting from such indemnifying Member’s gross negligence, fraud, or willful misconduct. 
 (c) In addition to and not in
limitation of any other indemnification obligations set forth in this Agreement, each Member shall indemnify the other with respect to: (i) any representations and warranties made in the Loan Documents by a Member thereunder which are made
based upon the knowledge of such Member thereunder; or (ii) any absolute representations and warranties made in the Loan Documents by a Member thereunder of which such Member has knowledge to be incorrect and, in each of the foregoing,
(i) and (ii), that (A) are untrue but not known to the indemnified Member at the closing of the Refinancing to be untrue, (B) cannot be cured within the cure period allowed in the Loan Documents with commercially reasonable efforts,
and (C) result in an event of default or other liability to the Member being indemnified. As used in this Section 4.3(c), the term “knowledge” and “known” shall mean, (x) with respect to GCI, the current, actual
(not constructive, imputed or implied) 

  
 21 

 
knowledge, after due inquiry, of Steven R. Heyer, Michelle Byard, Mike Daniel and Scott L. Smith, and (y) with respect to CHT, the current, actual (not constructive, imputed or implied)
knowledge, after due inquiry, of Stephen H. Mauldin and Joseph T. Johnson. 
 4.4 Dealing with Members. Subject to
compliance with Section 3.5, the fact that a Member, an Affiliate of a Member, or any officer, director, employee, member, partner, consultant or agent of a Member or an Affiliate, is directly or indirectly interested in or connected with any
Person employed by the Company to render or perform a service, or from or to whom the Company may buy or sell any property or have other business dealings, shall not prohibit a Member from employing such Person or from dealing with him or it on
customary terms and at competitive rates of compensation, and neither the Company, nor any of the other Members shall have any right in or to any income or profits derived therefrom by reason of this Agreement. 

4.5 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 EO13224, or (d) who is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses [a] – [c] above are referred to as a
“Prohibited Person”). Each Member represents, warrants and covenants that it will not (e) knowingly conduct any business, nor engage in any transaction or dealing, with any Prohibited Person, including, without limitation,
knowingly making or receiving any 

  
 22 

 
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. 
 ARTICLE 5 
 BOOKS AND RECORDS; REPORTS 
 5.1 Books and Records. At all times
during the continuance of the Company, the Managing Member, or such other Member as the Managing Member designates in accordance with the last sentence of Section 3.2, shall (a) keep or cause to be kept true and complete books and records,
including corporate and governance documents, of the Company and its Subsidiaries in which shall be entered each transaction of the Company and its Subsidiaries and (b) maintain and keep in good order the Organizational Documents of the Company
and its Subsidiaries and monitor corporate housekeeping issues relating to the Company and its Subsidiaries. Such books and records shall be kept on the basis of the Fiscal Year in accordance with the accrual method of accounting, and shall reflect
all transactions of the Company in accordance with GAAP. 
 5.2 Availability of Books and Records; Return of Books and
Records. All of the books and records referred to in Section 4.1 (which shall include an executed copy of this Agreement, the Certificate of Formation, and any amendments thereto) shall at all times be maintained at the principal office of
the Company or such other location as the Managing Member shall reasonably approve (which other location, upon such approval, shall be communicated to all of the Members), and shall be open to the inspection and examination of the Members or their
representatives during reasonable business hours upon reasonable prior notice to the Managing Member. 
 5.3 Reports and
Statements. Subject to the terms of Section 3.5, the Managing Member, or such other Member as the Managing Member designates in accordance with the last sentence of Section 3.2, shall be responsible for determining the need for
independent accountants, selecting the Company’s independent accountants, if any, and for preparing or overseeing the Company’s independent accountants in the preparation of all federal, state and local tax returns required to be filed.
The Managing Member shall, or, in the Managing Member’s sole discretion, such other Member as the Managing Member designates, shall cause the accountants to deliver to the Members completed IRS Schedules K-1 promptly upon receipt from the
independent accountants. Each Member shall notify the other Members upon receipt of any notice of tax examination of the Company by federal, state or local authorities. The Managing Member shall, or in the Managing Member’s sole discretion,
such other Member as the Managing Member designates shall deliver to the Company: (a) not later than the fifteenth (15th) day of each month monthly consolidated balance sheets and income statements for the

  
 23 

 
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 CHT to be used by CHT, or a consultant engaged by CHT, 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; (e) not later than
March 20th following the end of each Company Year,
annual audited consolidated financial statements for the Company prepared in accordance with GAAP, provided, however, that the Managing Member (or such other Member as the Managing Member designates) shall use its best efforts to deliver such annual
audited consolidated financial statements by
March 15th following the end of each Company Year;
and (f) 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 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 Annual Budget for the current fiscal
year. In each subsequent fiscal year, the Managing Member shall deliver to the other Members promptly upon receipt from the Facility Manager, a draft annual operations budget for the next fiscal year for each Facility (the “Proposed
Budgets”). The Proposed Budget shall be considered by the Members and a final annual operations budget shall be approved based on the Proposed Budget which shall become an Annual Budget in accordance with the requirements of the Management
Agreement for such Facility. If there is a delay in the finalization of a new Annual Budget, or if the Proposed Budget is not approved as aforesaid, the Company shall require the Facility Manager to operate the Facility pursuant to the Annual Budget
for the prior fiscal year for the Facility adjusted by any increase in the CPI from the prior calendar year. The Managing Member shall use commercially reasonable efforts to adhere to the Annual Budgets, it is understood, however, that the Annual
Budgets are only projections by the Managing Member of 

  
 24 

 
estimated results and that various circumstances such as, but not limited to, the cost of labor, material, services and supplies, casualty, operation of law, or economic and market conditions may
make achievement of the Annual Budgets impracticable or not obtainable. 
 ARTICLE 6 

CAPITAL CONTRIBUTIONS, LOANS 
 AND LIABILITIES 
 6.1 Initial Capital Contributions of the Members.
The initial Capital Contributions of the Members are set forth on Schedule 6.1 attached to this Agreement, made as follows: 
 (a) CHT has contributed Four Million Nine Hundred Forty-Nine Thousand Four Hundred Twenty-Three and 25/100 Dollars ($4,949,423.25) in cash to the Company, of which the Company has used (i) Four
Million Four Hundred Four Hundred Forty-Eight Thousand Seven Hundred Fourteen and 71/100 Dollars ($4,448,714.71) to make a distribution to GCI (the “GCI Excess Equity Amount,” (ii) a portion of, together with certain proceeds
from the Financing, to repay the mortgage financing that encumbered the Facilities immediately prior to the Financing, and (iii) a portion of to pay for other closing costs; and 

(b) GCI has contributed the GCI Contributed Assets to the Company for which GCI shall receive a Capital Account credit of One Million Six
Hundred Forty-Nine Thousand Eight Hundred Seven and 75/100 Dollars ($1,649,807.75). 
 6.2 GCI Excess Equity Amount. The
GCI Excess Equity Amount shall be distributed by the Company to GCI on the Effective Date. 
 6.3 Capital Calls. Any
Member may, at any time or times, request all Members to make a Capital Contribution upon the giving of a Capital Call, and all Members hereby agree to make additional Capital Contributions to the Company for the purpose of curing an event of
default or a default which with the passage of time will ripen into an event of default or will give rise to the exercise of a remedy by a Lender under the Refinancing 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 Refinancing or any future refinancing approved by all the Members pursuant to Section 3.5 of this Agreement at the maturity of the
Refinancing 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 Entities and Operating Lessees for the purposes set forth in this Section 6.3. 

  
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 6.4 Reimbursements. 

(a) Except as provided in Sections 6.4(b) below, the Company shall reimburse each GCI Guarantor and CHT Guarantor, as applicable, for
(i) all amounts paid by a GCI Guarantor or CHT Guarantor in respect of a Claim made by a Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a GCI Guarantor or CHT 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 GCI Guarantor or CHT 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 GCI Guarantor or CHT 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 GCI Recourse Claim or CHT Recourse Claim. 
 (c) Notwithstanding the foregoing, (a) CHT shall reimburse each GCI Guarantor for one hundred percent (100%) of (i) all amounts paid by a GCI Guarantor in respect of a CHT Recourse Claim
made by a Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a GCI Guarantor in respect of a CHT Recourse Claim and (b) GCI shall reimburse each CHT Guarantor for one hundred percent (100%) of
(i) all amounts paid by a CHT Guarantor in respect of a GCI Recourse Claim made by a Lender under an Affiliate Guaranty and (ii) Third Party Costs and Expenses incurred by a CHT Guarantor in respect of a GCI Recourse Claim. CHT and GCI
shall make such reimbursement from time to time, within ten (10) Business Days after demand from the GCI Guarantor or CHT Guarantor, as applicable, together with reasonable documentation substantiating the amount of the request. 

6.5 Remedies for Failure to Fund Capital Contributions. 
 (a) 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 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. 

  
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If and to the extent permitted under the terms of the Loan Documents, the Member Loan will be secured by a UCC security interest in the Non-Contributing Member’s Interest (which the
Non-Contributing Member hereby grants) and any transferee of the Non-Contributing Member’s Interest will take that Interest subject to the lien. In addition, the lien of such UCC security interest shall be superior-in-interest to the lien of
any pledge or other encumbrance granted by the Non-Contributing Member with respect to its Interest pursuant to and in accordance with Section 9.5 hereof. The Member Loan (to the extent of unpaid principal and interest) shall be payable within
thirty (30) days after written demand by the Contributing Member and shall be repaid (x) directly by the Company on behalf of the Non-Contributing Member to the Contributing Member from Net Operating Cash Flow or Capital Proceeds otherwise
distributable to the Non-Contributing Member as further provided in Section 8.4, and (y) to the extent outstanding, upon any Transfer of any part of the Non-Contributing Member’s Interest. Any Net Operating Cash Flow or Capital
Proceeds used to repay the Member Loan shall be applied first to interest and then to principal. The Member Loan may, at the election of the Contributing Member, be evidenced by a promissory note, and the Contributing Member is hereby granted an
irrevocable power of attorney, coupled with an interest, to execute and deliver that promissory note on behalf and in the name of the Non-Contributing Member. The failure of a Contributing Member or Non-Contributing Member to execute the promissory
note will not invalidate or otherwise affect the enforceability of, or amounts owing under, any Member Loan. 
 (b)
Notwithstanding anything in Section 6.5(a) to the contrary, if the terms of the Loan Documents prohibit treating all or any portion of a Capital Contribution contributed by a Contributing Member on behalf of a Non-Contributing Member as a
Member Loan, and any Member shall fail to timely make a Capital Contribution required pursuant to Section 6.3 in the amount and within the time period specified in the Capital Call notice, the Managing Member shall give written notice in
accordance with the requirements of Section 13.2 of such failure to all other Members and any other Member or Members may fund all or part of such Capital Contribution on behalf of such Non-Contributing Member as a Capital Contribution to the
Company. Any amounts funded by the Contributing Member on behalf of a Non-Contributing Member shall be made directly to the Company (and shall not be treated as a Member Loan). In such an event, (X) the Capital Account of such Contributing
Member shall be increased by two (2) times the aggregate amount of all Capital Contributions funded by such Contributing Member on behalf of itself and on behalf of the Non-Contributing Member with respect to the Capital Call in question, and
(Y) the Contributing Member’s Percentage Interest shall be increased and the Non-Contributing Member’s Percentage Interest shall be reduced each proportionately based on such increase of the Contributing Member’s Capital Account.

 6.6 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 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 

  
 27 

 
Agreement or by the Act. Nothing in this Agreement shall be construed to create liability of any Member in excess of the amount of its Capital Contribution except for gross negligence, fraud, or
willful misconduct by the Managing Member in its capacity as the Managing Member. 
 6.8 Refinancing. 

(a) Non-Recourse; Carve-out Guaranties The Refinancing is, or will be, secured by the Facilities and is, or will be, non-recourse
to the Company and to the Members, except as otherwise expressly set forth in the documents evidencing such Refinancing, provided that a GCI Guarantor and a CHT Guarantor will be jointly and severally responsible for certain obligations as set forth
in any Affiliate Guaranties. GCI and CHT shall cause GCI Guarantor and CHT Guarantor, respectively, to the extent required by the Lender, to issue any Affiliate Guarantees, in forms acceptable to GCI and CHT in their sole discretion. CHT, GCI and
the Company and the CHT Guarantor and GCI 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 GCI and CHT established hereunder shall initially be set forth on Schedule 6.1. 

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

  
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 (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 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 

  
 29 

 
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 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 

  
 30 

 
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, 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. 

  
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 (h) Reversal of Regulatory Allocations. 

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

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

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

  
 32 

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

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

(c) Each item of taxable income, gain, loss or deduction attributable to (i) any property (other than cash) contributed by a Member
to the Company, and (ii) any other property of the Company the Carrying Value of which has been adjusted pursuant to clause (iii) of the definition of Carrying Value, shall be allocated among the Members in accordance with
Section 704(c) of the Code, using such method permitted by Section 704(c) of the Code and the Regulations thereunder as may be selected by the Managing Member, with the approval of GCI, 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. 

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

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

ARTICLE 8 

DISTRIBUTIONS OF NET OPERATING CASH FLOW 
 AND CAPITAL PROCEEDS 
 8.1 Distributions of Net Operating Cash Flow.
Net Operating Cash Flow distributed shall be reasonably adjusted within 30 days after the end of the last calendar quarter of each 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 

  
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of any covenants or undertakings provided by the Company (including covenants or undertakings provided for third party financing) or would, in the opinion of the Members, acting reasonably, be
likely to do so during the following twelve (12) months), in the following order of priority: 
 (a) First, to CHT, until
CHT has received an 11% Cumulative Return, compounded annually, on CHT’s Total Capital Contribution; 
 (b) Second, to GCI,
until GCI has received an 11% Cumulative Return, compounded annually, on GCI’s Total Capital Contribution; and 
 (c)
Thereafter, the balance, if any, 75% to CHT and 25% to GCI. 
 8.2 Distribution of Capital Proceeds. Capital Proceeds
shall be distributed promptly after a Capital Transaction (unless (x) such distribution is not in compliance with law or (y) such distribution would result in a breach of any covenants or undertakings provided by the Company (including
covenants or undertakings provided for third party financing) or would, in the opinion of the Members, acting reasonably, be likely to do so during the following twelve (12) months) in the following order of priority: 

(a) First, to CHT, until CHT has received an 11% Internal Rate of Return, compounded annually, on CHT’s Total Capital Contribution
after taking into account all amounts previously distributed to CHT; 
 (b) Second, to GCI, until GCI has received an 11%
Internal Rate of Return, compounded annually, on GCI’s Total Capital Contribution after taking into account all amounts previously distributed to GCI; and 
 (c) Thereafter, the balance, if any, 60% to CHT and 40% to GCI. 
 8.3
Distribution Calculations. In applying the terms of Section 8.1 and Section 8.2, (a) references to relative Percentage Interests or relative Capital Contributions will be those in effect at the time of the distribution,
(b) until a particular priority has been satisfied in full, no amounts will be distributable under any junior priority, and (c) all amounts distributable under a particular priority will be prorated among the Members in the manner
specified within that priority, and the method of proration applied to each dollar distributable in that priority will be the same until that priority is satisfied in full. 

  
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 8.4 Repayment of Member Loans, Reconciliation Amounts and Other Payments. 

(a) Notwithstanding anything to the contrary in Section 8.1 and Section 8.2, if as a result of a Member Loan, any Member
becomes a Non-Contributing Member, then any distributions that would otherwise be payable to the Non-Contributing Member pursuant to Section 8.1 or Section 8.2 will instead be paid to the Contributing Member or Members, first to pay any
accrued interest and then to pay the principal amount thereof until such Member Loan (including any accrued and unpaid interest) is repaid in full and such amounts will not be deemed to have passed through the distribution 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 such indemnification reconciliation amount owed by a Member to
the Company that has not been paid pursuant to Section 4.3(b) and such amounts will not be deemed to have passed through the distribution 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 dissolved and the proceeds of such sale or other disposition shall be distributed in liquidation as provided in Article 10, except that to the extent that the Company receives a purchase
money note or notes in exchange for all or a portion of such assets, the Company shall continue until such purchase money note or notes have been paid in full. 
 8.6 GCI Excess Equity Amount. Notwithstanding anything to the contrary contained herein, the Members acknowledge and agree that GCI is entitled to receive the GCI Excess Equity Amount, which amount
was distributed by the Company to GCI from CHT’s initial Capital Contribution immediately following the Company’s receipt of CHT’s initial Capital Contribution. 
 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
GCI or CHT to their respective Affiliates, (ii) transfers 

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

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

  
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 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 Refinancing, the following Transfers shall be deemed “Permitted Transfers” and shall not require
the consent of the other Member. 
 (i) Any Member may pledge its Interest to a commercial lender in connection with a
financing for the benefit of such Member or its Affiliates (other than the Refinancing); provided that any such pledge would not contravene the terms and conditions of the Loan Documents; and provided further however, that the definitive loan
documentation with such lender, shall provide that: (i) such lender acknowledges and agrees that such pledge, and the lien and security interest created thereby, shall be subject and subordinate to any lien and security interest on such
Member’s Interest (whether then existing or thereafter created) which secures a Member Loan made to such Member, and such lender shall covenant and agree to duly execute and deliver such documents that may be reasonably requested by the
Contributing Member to evidence such subordination, and (ii) such lender shall provide a copy to both Members hereunder of any notice with respect to such lender’s intent to realize upon the pledged Interest after an event of default under
such financing, and the Member which is not subject to the financing shall have the same period as provided to the defaulting Member under the applicable loan documents to remedy or cause to be remedied the defaults specified in such notice (to the
extent such defaults are capable of being remedied by such Member). All sums expended by a Member to cure the loan defaults of a defaulting Member under this Section 9.5(a)(i) shall be treated as a Member Loan hereunder. In the event the
applicable defaults are not so cured and the lender realizes upon the defaulting Member’s Interest, such realization shall be a permitted Transfer hereunder. Each Member acknowledges and agrees that the Company shall not be required to bear any
costs or expenses in connection with a financing of the type described in this Section 9.5(a)(i) (including, without limitation, any fees, costs or expenses payable to any Lender on account of such financing), and all such costs and expenses
shall be borne solely by the Member to whom (or to the Affiliate of whom) such financing is made. In no event shall any such costs or expenses incurred by a Member pursuant to and in accordance with the immediately prior sentence entitle such Member
to a Capital Account credit hereunder. 
 (ii) GCI and its successors and assigns may sell all or any portion of its Interest
subject to the right of first offer in favor of CHT, on the terms set forth in Section 12.2 hereof; provided however, that with respect to the voting rights of any third party purchaser of a portion of the GCI Interest, such rights will be
exercised by GCI on behalf of such purchaser as if GCI retained 100% of its Interest. 
 (iii) CHT and its successors and
assigns may sell all or any portion of its Interest subject to the right of first offer in favor of GCI, on the terms set forth in Section 12.2 

  
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hereof; provided however, that with respect to the voting rights of any third party purchaser of a portion of the CHT Interest, such rights will be exercised by CHT on behalf of such purchaser as
if CHT retained 100% of its Interest. 
 (iv) CHT and its successors and assigns may, subject to the right of first offer in
favor of GCI on the terms set forth in Section 12.2 hereof, assign or sell all or a portion of its Interest to a REIT sponsored by CNL Financial Group, Inc., a Florida corporation, or its Affiliates. 

(b) Indirect Transfers of a Member’s Interest shall be subject to the restrictions set forth in Section 9.1, provided, however,
that notwithstanding anything else contained in this agreement, any Member may sell its Interest without receiving the prior written consent of the other Member in connection with a Liquidity Event. 

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 

  
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 (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. 

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

  
 40 

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

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

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

ARTICLE 12 

BUY-SELL; RIGHT OF FIRST OFFER 
 12.1 Buy Sell. 
 (a) With the consent of Lender, at any time from and after
two (2) years from the Effective Date, either Member (the “Offeror”) may give to the other Member (the “Offeree”) a written notice in accordance with the requirements of Section 13.2 (a “Buy-Sell
Notice”) stating the Offeror’s determination of the price for the assets of the Company if the Company was sold to a third party purchaser for fair market value, as determined by a qualified independent real estate appraiser with an
MAI designation, selected by the Offeror (without application of any lack of marketability or minority interest discounts), free and clear of all liabilities, (the “Buy-Sell Price”), and stating that the Offeror will either
(i) pay to the Offeree in exchange for all the Offeree’s Interest an amount (the “Offer Amount”) equal to the cash amount that the Offeree would have received in respect of the Offeree’s Interest pursuant to
Section 12.2, net of the Transfer Expenses, in the event of a Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the Buy-Sell Notice for a sales price equal to the Buy-Sell Price or (ii) sell
all the Offeror’s Interest to the Offeree in exchange for an amount (the “Selling Amount”) equal to the cash amount Offeror would have received pursuant to Section 12.2, net of the Transfer Expenses, in the event of a
Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the Buy-Sell Notice for a sales price equal to the Buy-Sell Price. The Offer Amount and Selling Amount shall be calculated by 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 shall notify both the Offeror and Offeree of such amounts in writing upon such calculation. 

(b) The Offeree shall have a period of thirty (30) days after its receipt of the Buy-Sell Notice within which to give the Offeror
written notice in accordance with the 

  
 41 

 
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. At the closing, the selling Member shall
transfer its Interest free and clear of all Liens in consideration of its receipt by wire transfer of the purchase price on the terms and conditions set forth in Section 12.3 below. Should either Member default in its obligation to close when
it is obligated to do so, (i) the defaulting purchasing party shall forfeit the deposit, (ii) the defaulting Member shall have no further ability to invoke the provisions of this Section 12.1 and (iii) the non-defaulting Member
(A) shall have the right to buy the defaulting Member’s Interest for a Buy-Sell Price that shall be reduced by ten percent (10%), which right shall continue for a period of thirty (30) days following the default of the defaulting
purchasing party and (B) shall be entitled to specific performance of such obligation. If the non-defaulting Member exercises the right set forth in the foregoing clause (iii), the closing of the purchase of the defaulting Member’s
Interest shall occur subject to and in accordance with the provisions of Section 12.3. 
 12.2 Right of First Offer.

 (a) Subject to the terms and conditions of Article 9 of this Agreement and notwithstanding anything to the contrary contained
herein, if, at any time, (i) GCI intends to sell all or a portion of its Interest pursuant to Section 9.5(a)(ii), or (ii) CHT 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 (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 Capital Transaction of the type described in Section 10.1(a) above on the date of delivery of the
Transfer Notice for a sales price equal to the Transfer Price, and shall notify 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
Member’s Interest in accordance with the 

  
 42 

 
provisions of Section 12.3 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 12.2(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 pursuant to the terms and conditions set forth in Section 11.2(b) below. 
 (b) Subject to
the restrictions of Section 9.1, 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 to 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 by 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 12.3 below. In such case, the Third Party Purchaser shall become a
Member hereunder; provided however, that with respect to the voting rights of the Third Party Purchaser, if less than 100% percent of the Interest of 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. 
 12.3 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 12.2 above (the “ROFO Closing Date”), or
(ii) the Buy/Sell Closing Date in accordance with Section 12.1 above, (as the case may be, the “Closing Date”) the Transferor Member (on the ROFO Closing Date), or Buy/Sell Seller (on the Buy/Sell Closing Date),
respectively, (as the case may be, the “Seller”), shall execute and deliver to the ROFO Recipient, or Buy/Sell Purchaser, respectively (as the case may be, the “Purchaser”), an assignment of the Seller’s
Interest (or with respect to the ROFO Closing Date, such portion of such Seller’s Interest which is subject to the assignment) (which assignment shall warrant Seller’s ownership of the Interest being sold to be free and clear of all liens
and other encumbrances) and such other instruments as the Purchaser may reasonably require, to give it good and lien free title to all of the Seller’s right, title and interest in the Company, subject to the terms of this Agreement. If the
Purchaser has elected to have the Seller convey the Seller’s Interest to a designee or nominee of the Purchaser, the Company shall thereafter continue. In such event, the Purchaser and the Company shall indemnify the Seller against claims and
liabilities of the Company arising after the date of such conveyance. 

  
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 (b) On the Closing Date, if the Purchaser is the remaining Member, then the Purchaser shall,
at its option, either (i) obtain a full release of the Seller (or a partial release in the event the Seller continues to be a Member after the Closing Date in connection with the sale of a partial Interest to the Third Party Purchaser) from all
liability, direct or contingent, by all holders of all Company and/or Subsidiary debts, obligations or claims against the Seller for which the Seller is or may be personally liable with respect to the period from and after the Closing Date, except
for any debts, obligations or claims which are fully insured by a public liability insurer(s) reasonably acceptable to the Seller; or (ii) cause all such debts, obligations or claims to be paid in full on the Closing Date. 

(c) In the event of a contemplated transfer to take place pursuant to Section 12.1 or Section 12.2 of this Agreement, the
Seller shall be entitled to receive distributions of available cash for the period ending at 11:59 p.m. of the day immediately preceding the Closing Date. All provisions allocating profits, losses, gains, deductions and credits for tax purposes
shall remain in effect through the Closing Date. 
 (d) The Managing Member is hereby authorized to execute and deliver all
documents, instruments and agreements deemed necessary or desirable by the Managing Member in its reasonable discretion to consummate the sale of the applicable Interest on the terms required by this Agreement to a Third Party Purchaser. If any
Member is required to execute any such documents, instruments or agreements, such Member shall execute the same upon the request of the Managing Member so long as the same are on terms and conditions which are reasonable and customary and do not
increase the liability of such Member in such Member’s reasonable discretion. 
 (e) If 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 $500,000.00, in the aggregate, with respect to all Facilities), 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 the repair of which is reasonably estimated to cost more than $500,000.00, in the aggregate, with respect to all
Facilities), or if a taking of a Facility or Facilities worth at least $500,000.00, in the aggregate, with respect to all Facilities, shall occur, then the Purchaser shall have the option to either (a) accept the 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. 

  
 44 

 (iii) From and after the determination of the Closing Date, but prior to such Closing Date,
provided that the purchase has not been canceled by the Purchaser pursuant to Section 12.3(e)(ii), the Company shall not settle any claim relating to a casualty that damages the 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 and Section 12.2 above.

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

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

 ARTICLE 13 
 MISCELLANEOUS 
 13.1 Further Assurances. Each party to this
Agreement agrees to execute, acknowledge, deliver, file and record such further certificates, amendments, instruments and documents, and to do all such other acts and things, as may be required by law or as, in the reasonable judgment of the
Managing Member, may be necessary or advisable to carry out the intent and purpose of this Agreement so long as such acts and things do not increase the obligations or diminish the rights of any of the Members. 

  
 45 

 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 CHT or the Managing Member:	    	 c/o CNL Healthcare Trust, Inc.
 CNL Center at City Commons
 450 South Orange Ave.

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

407-540-7546 (Greer)

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

Attn.: Peter L. Lopez, Esq.
 Telecopy No.:
407-843-4444
 Telephone No.: 407-418-6277

  
 46 

			
	To GCI:	    	 c/o GCI Development, LLC

8710 Earhart Lane SW
 Cedar Rapids, Iowa
52404
 Attn: Steven R. Heyer
 Telecopy
No.: 319-841-4012
 Telephone No.: 319-360-0046

		
	With a copy to:	    	 c/o GCI Development, LLC

420 N. Front Street, Suite 100
 McHenry, IL
60050
 Attn: Scott Smith, Esquire

Telecopy No.: 815-385-0988
 Telephone No.:
815-739-7117

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

13.3 Headings and Captions. All headings and captions contained in this Agreement and the table of contents hereto are inserted
for convenience only and shall not be deemed a part of this Agreement. 
 13.4 Variance of Pronouns. All pronouns and all
variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person or entity may require. 
 13.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one Agreement. The
submission of a signature page transmitted by facsimile (or similar electronic transmission facility) shall be considered as an “original” signature page for purposes of this Agreement so long as the original signature page is thereafter
transmitted by mail or by other delivery service and the original signature page is substituted for the facsimile signature page in the original and duplicate originals of this Agreement. 

  
 47 

 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, except to the extent that any legal interpretation involves a real estate issue and relates to the Facilities in which case Iowa law shall govern the interpretation of such matter. 

(b) For the purposes of any suit, action or proceeding involving this Agreement, the parties each hereby expressly and irrevocably
submits to the jurisdiction of all federal and state courts sitting in the State of Iowa 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 State of Iowa 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 State of Iowa 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 FACILITIES, OR ANY CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE FOREGOING. 
 13.7 Arbitration. 
 (a) Any dispute with respect to the matters described
in Sections 3.5 and 5.5 under this Agreement for which arbitration in accordance with Section 13.7 is expressly provided shall be determined by binding arbitration proceeding (the “Arbitration Proceeding”) administered by the
American Arbitration Association (“AAA”) under its Commercial Arbitration Rules and Expedited Procedures, in effect at the time of the demand for arbitration, provided, however, that to the extent any provision of this Section
modifies, adds to, or is inconsistent with any provisions of those rules and procedures, the provisions of this Section shall control. Arbitration will be conducted before a single arbitrator in Orlando, FL or Cedar Rapids, Iowa (the
“Venue”). The parties hereby acknowledge and agree that the party which did not initiate the Arbitration Proceeding shall have the right to elect the Venue in its sole discretion,

  
 48 

 
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 assisted living facilities similar to the 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 assisted living facilities in the market place for 

  
 49 

 
the matter in dispute and (iv) be neutral and shall have had no prior notice, information or discussions concerning such controversy and shall not be employed by or associated with either
party or any Affiliate of either of them, or any of their respective agents or affiliates at such time or for the previous ten (10) years. If the dispute involves more than one type of matter, then the Appointed Arbitrator may be (v) an
individual with expertise in any one of the types of matters in dispute, or (vi) a retired judge. 
 (d) The Arbitration
Proceedings shall commence fifteen (15) Business Days after the engagement or appointment of the appropriate arbitrator pursuant to this Section 13.7. The arbitrator shall make a determination within ten (10) Business Days after
conclusion of the Arbitration Proceeding. 
 (e) The costs and expenses of an Arbitration Proceeding including the
administrative fees and costs, expert fees and the arbitrator’s fees and costs, shall be shared equally by CHT and GCI, 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. 

  
 50 

 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. 
 13.13 No Brokers. Except as disclosed in the Disclosure Statement to the
Transfer Agreement, each of the Members hereto represents and warrants to each other that there are no brokerage commissions or finders’ fees (or any basis therefor) resulting from any action taken by such Member or any Person acting or
purporting to act on their behalf upon entering into this 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, member, officer, director or employee of such Member or Affiliate or counsel to or financial advisors or accountants
of such Member solely for their use on behalf of such Member and on a need-to-know basis, provided that such Persons are notified of the Member’s confidentiality obligations pursuant to this Agreement, (b) with the consent of the other
Members, (c) if required by governmental law, rule or regulation, in which event the disclosing party shall, unless prohibited by law, immediately notify the other of the terms and circumstances of the disclosure, and cooperate with any efforts
to prevent or limit disclosure, (d) subject to the next paragraph, pursuant to a subpoena or order issued by a court, arbitrator or governmental body, agency or official or (e) to any lender providing financing to the Company. 

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

  
 51 

 
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 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] 

  
 52 

 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:
	
	 GCI DEVELOPMENT, LLC,
 an Iowa limited liability company

		
	By:	 	 /s/ Steven Heyer

		 	Name: Steven Heyer
		 	Title: President
	
	CHT WINDSOR MANOR AL HOLDING, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Kevin Maddron

		 	Name: Kevin Maddron
		 	Title: Senior Vice President

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