Document:

Exhibit 10.5

 

PHILLIPS EDISON – ARC GROCERY CENTER
REIT II, INC.

 

2013 LONG-TERM INCENTIVE PLAN

 

    	 

    	 

    

 

PHILLIPS EDISON – ARC GROCERY CENTER
REIT II, INC.

LONG-TERM INCENTIVE PLAN

 

	ARTICLE 1 PURPOSE	 	1
	 	 	 
	1.1	 	General	 	1
	 	 	 	 	 
	ARTICLE 2 DEFINITIONS	 	1
	 	 	 
	2.1	 	Definitions	 	1
	 	 	 	 	 
	ARTICLE 3 EFFECTIVE TERM OF PLAN	 	4
	 	 	 
	3.1	 	Effective Date	 	4
	 	 	 	 	 
	3.2	 	Term of Plan	 	4
	 	 	 	 	 
	ARTICLE 4 ADMINISTRATION	 	4
	 	 	 
	4.1	 	Committee	 	4
	 	 	 	 	 
	4.2	 	Actions and Interpretations by the Committee	 	5
	 	 	 	 	 
	4.3	 	Authority of Committee	 	5
	 	 	 	 	 
	4.4	 	Award Certificates	 	6
	 	 	 	 	 
	ARTICLE 5 SHARES SUBJECT TO THE PLAN	 	6
	 	 	 
	5.1	 	Number of Shares	 	6
	 	 	 	 	 
	5.2	 	Share Counting	 	6
	 	 	 	 	 
	5.3	 	Stock Distributed	 	6
	 	 	 	 	 
	ARTICLE 6 ELIGIBILITY	 	7
	 	 	 
	6.1	 	General	 	7
	 	 	 	 	 
	ARTICLE 7 STOCK OPTIONS	 	7
	 	 	 
	7.1	 	General	 	7
	 	 	 	 	 
	7.2	 	Incentive Stock Options	 	7
	 	 	 	 	 
	ARTICLE 8 STOCK APPRECIATION RIGHTS	 	8
	 	 	 
	8.1	 	Grant of Stock Appreciation Rights	 	8
	 	 	 	 	 
	ARTICLE 9 PERFORMANCE AWARDS	 	8
	 	 	 
	9.1	 	Grant of Performance Awards	 	8
	 	 	 	 	 
	9.2	 	Performance Goals	 	8
	 	 	 	 	 
	9.3	 	Right to Payment	 	8
	 	 	 	 	 
	9.4	 	Other Terms	 	9
	 	 	 	 	 
	ARTICLE 10 RESTRICTED STOCK AND RESTRICTED STOCK UNIT AWARDS	 	9
	 	 	 
	10.1	 	Grant of Restricted Stock and Restricted Stock Units	 	9
	 	 	 	 	 
	10.2	 	Issuance and Restrictions	 	9

 

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	10.3	 	Forfeiture	 	9
	 	 	 	 	 
	10.4	 	Delivery of Restricted Stock	 	9
	 	 	 	 	 
	ARTICLE 11 DEFERRED STOCK UNITS	 	9
	 	 	 
	11.1	 	Grant of Deferred Stock Units	 	9
	 	 	 	 	 
	ARTICLE 12 DIVIDEND EQUIVALENTS	 	10
	 	 	 
	12.1	 	Grant of Dividend Equivalents	 	10
	 	 	 	 	 
	ARTICLE 13 STOCK OR OTHER STOCK-BASED AWARDS	 	10
	 	 	 
	13.1	 	Grant of Stock or Other Stock-Based Awards	 	10
	 	 	 	 	 
	ARTICLE 14 PROVISIONS APPLICABLE TO AWARDS	 	10
	 	 	 
	14.1	 	Stand-Alone and Tandem Awards	 	10
	 	 	 	 	 
	14.2	 	Term of Awards	 	10
	 	 	 	 	 
	14.3	 	Form of Payment of Awards	 	10
	 	 	 	 	 
	14.4	 	Limits on Transfer	 	10
	 	 	 	 	 
	14.5	 	Beneficiaries	 	11
	 	 	 	 	 
	14.6	 	Stock Certificates	 	11
	 	 	 	 	 
	14.7	 	Acceleration Upon Death or Disability	 	11
	 	 	 	 	 
	14.8	 	Treatment upon a Change in Control	 	11
	 	 	 	 	 
	14.9	 	Acceleration For Any Reason	 	12
	 	 	 	 	 
	14.10	 	Termination of Employment	 	12
	 	 	 	 	 
	14.11	 	Forfeiture Events	 	12
	 	 	 	 	 
	14.12	 	Substitute Awards	 	12
	 	 	 	 	 
	ARTICLE 15 CHANGES IN CAPITAL STRUCTURE	 	13
	 	 	 
	15.1	 	Mandatory Adjustments	 	13
	 	 	 	 	 
	15.2	 	Discretionary Adjustments	 	13
	 	 	 	 	 
	15.3	 	General	 	13
	 	 	 	 	 
	ARTICLE 16 AMENDMENT, MODIFICATION AND TERMINATION	 	13
	 	 	 
	16.1	 	Amendment, Modification and Termination	 	13
	 	 	 	 	 
	16.2	 	Awards Previously Granted	 	14
	 	 	 	 	 
	ARTICLE 17 GENERAL PROVISIONS	 	14
	 	 	 
	17.1	 	No Rights to Awards; Non-Uniform Determinations	 	14
	 	 	 	 	 
	17.2	 	No Shareholder Rights	 	14
	 	 	 	 	 
	17.3	 	Withholding	 	14
	 	 	 	 	 
	17.4	 	No Right to Continued Service	 	14

 

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	17.5	 	Unfunded Status of Awards	 	14
	 	 	 	 	 
	17.6	 	Relationship to Other Benefits	 	15
	 	 	 	 	 
	17.7	 	Expenses	 	15
	 	 	 	 	 
	17.8	 	Titles and Headings	 	15
	 	 	 	 	 
	17.9	 	Gender and Number	 	15
	 	 	 	 	 
	17.10	 	Fractional Shares	 	15
	 	 	 	 	 
	17.11	 	Government and Other Regulations	 	15
	 	 	 	 	 
	17.12	 	Governing Law	 	15
	 	 	 	 	 
	17.13	 	Additional Provisions	 	15
	 	 	 	 	 
	17.14	 	No Limitations on Rights of Company	 	15
	 	 	 	 	 
	17.15	 	Indemnification	 	16
	 	 	 	 	 
	17.16	 	Special Provisions Related to Section 409A of the Code	 	16

 

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PHILLIPS EDISON – ARC GROCERY
CENTER REIT II, INC. 

2013 LONG-TERM INCENTIVE PLAN

 

ARTICLE 1 

PURPOSE

 

1.1. GENERAL. The purpose of the
Phillips Edison – ARC Grocery Center REIT II, Inc. 2013 Long-Term Incentive Plan (the “Plan”) is to promote
the success, and enhance the value, of Phillips Edison – ARC Grocery Center REIT II, Inc. (the “Company”),
by linking the personal interests of employees, officers and consultants of the Company or any Affiliate (as defined below) to
those of Company stockholders and by providing such persons with an incentive for outstanding performance. The Plan is further
intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of employees, officers
and consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely
dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers and
consultants of the Company and its Affiliates.

 

ARTICLE 2 

DEFINITIONS

 

2.1. DEFINITIONS. When a word or
phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word
or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1, unless a clearly different
meaning is required by the context. The following words and phrases shall have the following meanings:

 

(a) “Affiliate”
means (i) any Subsidiary or Parent, (ii) American Realty Capital PECO II Advisors, LLC, (iii) Phillips Edison NTR II LLC or
(iv) an entity that directly or through one or more intermediaries controls, is controlled by or is under common control with,
the Company, as determined by the Committee.

 

(b) “Award”
means any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Deferred Stock Unit Award, Performance
Award, Dividend Equivalent Award, Other Stock-Based Award, Performance-Based Cash Awards, or any other right or interest relating
to Stock or cash, granted to a Participant under the Plan.

 

(c) “Award Certificate”
means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of
an Award. Award Certificates may be in the form of individual award agreements or certificates or a program document describing
the terms and provisions of an Awards or series of Awards under the Plan.

 

(d) “Board”
means the Board of Directors of the Company.

 

(e) “Cause”
as a reason for a Participant’s termination of employment shall have the meaning assigned such term in the employment, severance
or similar agreement, if any, between such Participant and the Company or an Affiliate, provided, however that if there is no such
employment, severance or similar agreement in which such term is defined, and unless otherwise defined in the applicable Award
Certificate, “Cause” shall mean any of the following acts by the Participant, as determined by the Committee
or the Board: (i) the willful and continued failure of the Participant to perform his or her required duties as an officer
or employee of the Company or any Affiliate, (ii) any action by the Participant that involves willful misfeasance or gross
negligence, (iii) the requirement of or direction by a federal or state regulatory agency that has jurisdiction over the Company
or any Affiliate to terminate the employment of the Participant, (iv) the conviction of the Participant of the commission
of any criminal offense that involves dishonesty or breach of trust, or (v) any intentional breach by the Participant of a
material term, condition or covenant of any agreement between the Participant and the Company or any Affiliate.

 

(f) “Change in Control”
means and includes the occurrence of any one of the following events but shall specifically exclude a Public Offering:

 

(i) individuals who, on the Effective
Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority
of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election
was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided,
however , that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest with respect to the election or removal of directors (“Election Contest”) or other actual or
threatened solicitation of proxies or consents by or on behalf of any Person other than the Board ( “Proxy Contest”
), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent
Director; or

 

    	 

    	 

    

 

(ii) any person becomes a “beneficial
owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of either (A) 25% or more of the then-outstanding
shares of common stock of the Company ( “Company Common Stock” ) or (B) securities of the Company representing
25% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of
directors (the “Company Voting Securities” ); provided, however, that for purposes of this subsection
(ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control:
(w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary of the Company, (y) an
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company,
or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or

 

(iii) the consummation of a reorganization,
merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary
(a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets
(a “Sale”) or the acquisition of assets or stock of another corporation (an “Acquisition”),
unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting Securities
immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively,
the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation resulting from such Reorganization, Sale or
Acquisition (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Corporation”)
in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the
outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other
than (x) the Company or any Subsidiary of the Company, (y) the Surviving Corporation or its ultimate parent corporation,
or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing is the beneficial owner,
directly or indirectly, of 25% or more of the total common stock or 25% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Surviving Corporation, and (C) at least a majority of the members of the board
of directors of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the execution of
the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies
all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”);
or

 

(iv) approval by the stockholders
of the Company of a complete liquidation or dissolution of the Company.

 

(g) “Code” means
the Internal Revenue Code of 1986, as amended from time to time, and includes a reference to the underlying final regulations.

 

(h) “Committee”
means the committee of the Board described in Article 4.

 

(i) “Company”
means Phillips Edison – ARC Grocery Center REIT II, Inc., a Maryland corporation, or any successor corporation.

 

(j) “Continuous Status
as a Participant” means the absence of any interruption or termination of service as an employee, officer or consultant
of the Company or any Affiliate, as applicable; provided, however, that for purposes of an Incentive Stock Option, or a Stock Appreciation
Right issued in tandem with an Incentive Stock Option, “Continuous Status as a Participant” means the absence
of any interruption or termination of service as an employee of the Company or any Parent or Subsidiary, as applicable, pursuant
to applicable tax regulations. Continuous Status as a Participant shall continue to the extent provided in a written severance
or employment agreement during any period for which severance compensation payments are made to an employee, officer or consultant
and shall not be considered interrupted in the case of any short-term disability or leave of absence authorized in writing by the
Company prior to its commencement; provided, however, that for purposes of Incentive Stock Options, no such leave may exceed 90
days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of
a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held
by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option.

 

(k) “Deferred Stock Unit”
means a right granted to a Participant under Article 11.

 

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(l) “Disability”
or “Disabled” has the same meaning as provided in the long-term disability plan or policy maintained by the
Company or if applicable, most recently maintained, by the Company or if applicable, an Affiliate, for the Participant, whether
or not such Participant actually receives disability benefits under such plan or policy. If no long-term disability plan or policy
was ever maintained on behalf of Participant or if the determination of Disability relates to an Incentive Stock Option, or a Stock
Appreciation Right issued in tandem with an Incentive Stock Option, Disability means Permanent and Total Disability as defined
in Section 22(e)(3) of the Code. In the event of a dispute, the determination whether a Participant is Disabled will be made
by the Committee and may be supported by the advice of a physician competent in the area to which such Disability relates.

 

(m) “Dividend Equivalent”
means a right granted to a Participant under Article 12.

 

(n) “Effective Date”
has the meaning assigned such term in Section 3.1.

 

(o) “Eligible Participant”
means an employee, officer or consultant of the Company or any Affiliate.

 

(p) “Fair Market Value”,
on any date, means (i) if the Stock is listed on a national securities exchange or is traded on a national market system, the closing
sales price on such exchange or over such system on such date or, in the absence of reported sales on such date, the closing sales
price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a national securities
exchange or traded on a national market system, the mean between the bid and offered prices as quoted by NASDAQ for such date,
provided that if it is determined that the fair market value is not properly reflected by such NASDAQ quotations or bid and offered
prices for the Shares are not quoted by NASDAQ, Fair Market Value will be determined by such other method as the Committee determines
in good faith to be reasonable.

 

(q) “Full Value Award”
means an Award other than in the form of an Option or SAR, and which is settled by the issuance of Stock.

 

(r) “Good Reason”
(or similar term) has the meaning assigned such term in the Award Certificate or agreement referred to in Section 14.8(b).

 

(s) “Grant Date”
of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the Award as provided
in the Plan, or such later date as is determined and specified as part of that authorization process. Notice of the grant shall
be provided to the grantee within a reasonable time after the Grant Date.

 

(t) “Incentive Stock Option”
means an Option that is intended to be an incentive stock option and meets the requirements of Section 422 of the Code or
any successor provision thereto.

 

(u) “Independent Director”
means a director of the Company who is not a common law employee of the Company or an Affiliate.

 

(v) “Nonstatutory Stock
Option” means an Option that is not an Incentive Stock Option.

 

(w) “Option”
means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time
periods. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.

 

(x) “Other Stock-Based
Award” means a right, granted to a Participant under Article 13, that relates to or is valued by reference to Stock or
other Awards relating to Stock.

 

(y) “Parent”
means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding
voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall
mean a “parent corporation” within the meaning set forth in Section 424(e) of the Code.

 

(z) “Participant”
means a person who, as an employee, officer or consultant of the Company or any Affiliate, has been granted an Award under the
Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary
designated pursuant to Section 14.5 or the legal guardian or other legal representative acting in a fiduciary capacity on
behalf of the Participant under applicable state law and court supervision.

 

(aa) “Performance Award”
means Performance Shares or Performance Units or Performance-Based Cash Awards granted pursuant to Article 9.

 

(bb) “Performance-Based
Cash Award” means a right granted to a Participant under Article 9 to a cash award to be paid upon achievement of such
performance goals as the Committee establishes with regard to such Award.

 

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(cc) “Performance Share”
means any right granted to a Participant under Article 9 to a unit to be valued by reference to a designated number of Shares to
be paid upon achievement of such performance goals as the Committee establishes with regard to such Performance Share.

 

(dd) “Performance Unit”
means a right granted to a Participant under Article 9 to a unit valued by reference to a designated amount of cash or property
other than Shares to be paid to the Participant upon achievement of such performance goals as the Committee establishes with regard
to such Performance Unit.

 

(ee) “Person”
means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3)
or 14(d)(2) of the 1934 Act.

 

(ff) “Plan”
means the Phillips Edison – ARC Grocery Center REIT II, Inc. 2013 Long-Term Incentive Plan, as amended from time to time.

 

(gg) “Public Offering”
shall occur on the closing date of a firm commitment underwritten public offering of any class or series of the Company’s
equity securities pursuant to a registration statement filed by the Company under the 1933 Act.

 

(hh) “Restricted Stock
Award” means Stock granted to a Participant under Article 10 that is subject to certain restrictions and to risk of forfeiture.

 

(ii) “Restricted Stock
Unit Award” means the right granted to a Participant under Article 10 to receive shares of Stock (or the equivalent value
in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk
of forfeiture.

 

(jj) “Shares”
means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Section 15.1, the term
“Shares” shall also include any shares of stock or other securities that are substituted for Shares or into which
Shares are adjusted pursuant to Section 15.1.

 

(kk) “Stock”
means the $0.01 par value common stock of the Company and such other securities of the Company as may be substituted for Stock
pursuant to Article 15.

 

(ll) “Stock Appreciation
Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment equal
to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the grant price of the SAR,
all as determined pursuant to Article 8.

 

(mm) “Subsidiary”
means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock
or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive
Stock Option, Subsidiary shall mean a “subsidiary corporation” within the meaning set forth in Section 424(f)
of the Code.

 

(nn) “1933 Act”
means the Securities Act of 1933, as amended from time to time.

 

(oo) “1934 Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

ARTICLE 3 

EFFECTIVE TERM OF PLAN

 

3.1. EFFECTIVE DATE. The Plan shall
be effective as of the date it is approved by the stockholders of the Company (the “Effective Date”).

 

3.2. TERMINATION OF PLAN. The Plan
shall terminate on the tenth anniversary of the Effective Date unless earlier terminated as provided herein. The termination of
the Plan on such date shall not affect the validity of any Award outstanding on the date of termination.

 

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ARTICLE 4 

ADMINISTRATION

 

4.1. COMMITTEE. The Plan shall be
administered by a Committee appointed by the Board (which Committee shall consist of at least two directors) or, at the discretion
of the Board from time to time, the Plan may be administered by the Board. It is intended that at least two of the directors appointed
to serve on the Committee shall be “non-employee directors” (within the meaning of Rule 16b-3 promulgated under the
1934 Act) and that any such members of the Committee who do not so qualify shall abstain from participating in any decision to
make or administer Awards that are made to Eligible Participants who at the time of consideration for such Award are persons subject
to the short-swing profit rules of Section 16 of the 1934 Act. However, the mere fact that a Committee member shall fail to
qualify under the foregoing requirement or shall fail to abstain from such action shall not invalidate any Award made by the Committee
which Award is otherwise validly made under the Plan. The members of the Committee shall be appointed by, and may be changed at
any time and from time to time in the discretion of, the Board. The Board may reserve to itself any or all of the authority and
responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the extent
the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan,
it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1)
shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the
actions of the Board shall control.

 

4.2. ACTION AND INTERPRETATIONS BY THE
COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines
and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with
the Plan, as the Committee may deem appropriate. The Committee’s interpretation of the Plan, any Awards granted under the
Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding,
and conclusive on all parties. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other
information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an
Affiliate’s independent certified public accountants, Company counsel or any executive compensation consultant or other professional
retained by the Company to assist in the administration of the Plan.

 

4.3. AUTHORITY OF COMMITTEE. Except
as provided below, the Committee has the exclusive power, authority and discretion to:

 

(a) Grant Awards;

 

(b) Designate Participants;

 

(c) Determine the type or types
of Awards to be granted to each Participant;

 

(d) Determine the number of Awards
to be granted and the number of Shares or dollar amount to which an Award will relate;

 

(e) Determine the terms and conditions
of any Award, not inconsistent with the provisions of the Plan, granted under the Plan, including but not limited to, the exercise
price, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions
or restrictions on the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations
as the Committee in its sole discretion determines;

 

(f) Determine whether, to what
extent, and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Stock,
other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(g) Prescribe the form of each
Award Certificate, which need not be identical for each Participant;

 

(h) Decide all other matters that
must be determined in connection with an Award;

 

(i) Establish, adopt or revise
any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;

 

(j) Make all other decisions and
determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

 

(k) Amend the Plan or any Award
Certificate as provided herein; and

 

(l) Adopt such modifications, procedures,
and subplans as may be necessary or desirable to comply with provisions of the laws of non-U.S. jurisdictions in which the Company
or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in such
other jurisdictions and to meet the objectives of the Plan.

 

Notwithstanding the foregoing, grants of
Awards hereunder shall not be made to Independent Directors in their capacity as such, it being the intention that grants to Independent
Directors shall be made only in accordance with the terms, conditions and parameters of a separate plan, program or policy for
the compensation of Independent Directors as in effect from time to time.

 

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Notwithstanding the above, the Board or
the Committee may, by resolution, expressly delegate to a special committee, consisting of one or more directors who are also officers
of the Company, the authority, within specified parameters, to (i) designate officers, employees and/or consultants of the
Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards
to be granted to any such Participants; provided that a limit on the total number or dollar value of Awards to be granted to any
such Participants shall be approved in advance by the Board or the Committee and provided further that such delegation of duties
and responsibilities to such special committee may not be made with respect to the grant of Awards to Eligible Participants who
are subject to Section 16(a) of the 1934 Act at the Grant Date. The acts of such delegates shall be treated hereunder as acts
of the Board and such delegates shall report regularly to the Board and the Committee regarding the delegated duties and responsibilities
and any Awards so granted.

 

4.4. AWARD CERTIFICATES. Each Award
shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with the Plan,
as may be specified by the Committee.

 

ARTICLE 5 

SHARES SUBJECT TO THE PLA N

 

5.1. NUMBER OF SHARES. Subject
to adjustment as provided in Sections 5.2 and 15.1, the aggregate number of Shares reserved and available for issuance pursuant
to Awards granted under the Plan shall be 4,000,000. The maximum number of Shares that may be issued upon exercise of Incentive
Stock Options granted under the Plan shall be 4,000,000. The maximum number of Shares that may be issued (i) upon the exercise
or grant of an Award granted under the Plan and (ii) pursuant to the Company’s 2013 Independent Director Stock Plan, shall
not exceed in the aggregate (including both plans) an amount equal to 5% of the outstanding Shares on the Grant Date.

 

5.2. SHARE COUNTING.

 

(a) To the extent that an Award
is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued Shares from such Award will again be available
for issuance pursuant to Awards granted under the Plan.

 

(b) Shares subject to Awards settled
in cash will again be available for issuance pursuant to Awards granted under the Plan.

 

(c) Shares withheld from
an Award to satisfy minimum tax withholding requirements will again be available for issuance pursuant to Awards granted under
the Plan, but Shares delivered by a Participant (by either actual delivery or attestation) to satisfy tax withholding requirements
shall not be added back to the number of Shares available for issuance under the Plan.

 

(d) If the exercise price of an
Option is satisfied by delivering Shares to the Company (by either actual delivery or attestation), only the net number of Shares
actually issued by the Company shall be considered for purposes of determining the number of Shares remaining available for issuance
pursuant to Awards granted under the Plan.

 

(e) To the extent that the full
number of Shares subject to an Award is not issued for any reason, only the number of Shares issued and delivered shall be considered
for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan. Nothing
in this subsection shall imply that any particular type of cashless exercise of an Option is permitted under the Plan, that decision
being reserved to the Committee or other provisions of the Plan.

 

5.3. STOCK DISTRIBUTED. Any Stock
distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased
on the open market.

 

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ARTICLE 6 

ELIGIBILITY

 

6.1. GENERAL. Awards may be granted
only to Eligible Participants; except that Incentive Stock Options may be granted only to Eligible Participants who are employees
of the Company or a Parent or Subsidiary which constitutes a “parent corporation” or a “subsidiary corporation”
as defined in Section 424(e) and (f) of the Code, respectively.

 

ARTICLE 7 

STOCK OPTIONS

 

7.1. GENERAL. The Committee is authorized
to grant Options to Participants subject to terms and conditions, not inconsistent with the provisions of the Plan, as the Committee
shall establish, including the following:

 

(a) EXERCISE PRICE. The
exercise price per Share under an Option shall be determined by the Committee; provided, however, that the exercise price of an
Option shall not be less than the Fair Market Value as of the Grant Date.

 

(b) TIME AND CONDITIONS OF EXERCISE.
The Committee shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(d).
The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an
Option may be exercised or vested. Except under certain circumstances contemplated by Section 14.8 or 14.9 or as may be set
forth in an Award Certificate with respect to death or Disability of a Participant, Options will not be exercisable before the
expiration of one year from the Grant Date.

 

(c) PAYMENT. The Committee
shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including, without limitation,
cash, Shares, or other property (including “cashless exercise” arrangements), and the methods by which Shares shall
be delivered or deemed to be delivered to Participants; provided, however, that if Shares are used to pay the exercise price of
an Option, such Shares must have been held by the Participant for at least such period of time, if any, as necessary to avoid the
recognition of an expense under generally accepted accounting principles as a result of the exercise of the Option.

 

(d) EXERCISE TERM. In no
event may any Option be exercisable for more than ten years from the Grant Date.

 

7.2. INCENTIVE STOCK OPTIONS. The
terms of any Incentive Stock Options granted under the Plan must comply with the following additional rules:

 

(a) EXERCISE PRICE. The
exercise price of an Incentive Stock Option shall not be less than the Fair Market Value as of the Grant Date.

 

(b) LAPSE OF OPTION. Subject
to any earlier termination provision contained in the Award Certificate, an Incentive Stock Option shall lapse upon the earliest
of the following circumstances:

 

(1) The expiration date set forth
in the Award Certificate.

 

(2) The tenth anniversary of
the Grant Date.

 

(3) Three months after termination
of the Participant’s Continuous Status as a Participant for any reason other than the Participant’s Disability or death.

 

(4) One year after the termination
of the Participant’s Continuous Status as a Participant by reason of the Participant’s Disability.

 

(5) Two years after the Participant’s
death if the Participant dies while employed or during the three-month period described in paragraph (3) or during the one-year
period described in paragraph (4) and before the Option otherwise lapses.

 

Unless the exercisability of the
Incentive Stock Option is accelerated as provided in Article 14, if a Participant exercises an Option after termination of employment,
the Option may be exercised only with respect to the Shares that were otherwise vested on the Participant’s termination of
employment. Upon the Participant’s death, any exercisable Incentive Stock Options may be exercised by the Participant’s
beneficiary, determined in accordance with Section 14.5.

 

(c) INDIVIDUAL DOLLAR LIMITATION.
The aggregate Fair Market Value (determined as of the Grant Date) of all Shares with respect to which Incentive Stock Options are
first exercisable by a Participant in any calendar year may not exceed $100,000.00.

 

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(d) TEN PERCENT OWNERS.
No Incentive Stock Option shall be granted to any individual who, at the Grant Date, owns stock possessing more than ten percent
of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary unless the exercise price
per share of such Option is at least 110% of the Fair Market Value per Share at the Grant Date and the Option expires no later
than five years after the Grant Date.

 

(e) EXPIRATION OF AUTHORITY
TO GRANT INCENTIVE STOCK OPTIONS. No Incentive Stock Option may be granted pursuant to the Plan after the day immediately prior
to the tenth anniversary of the Effective Date of the Plan, or the termination of the Plan, if earlier.

 

(f) RIGHT TO EXERCISE. During
a Participant’s lifetime, an Incentive Stock Option may be exercised only by the Participant or, in the case of the Participant’s
Disability, by the Participant’s guardian or legal representative.

 

(g) ELIGIBLE GRANTEES. The
Committee may not grant an Incentive Stock Option to a person who is not at the Grant Date an employee of the Company or a Parent
or Subsidiary which constitute a “parent corporation” or a “subsidiary corporation” as defined in Section
424(e) and (f) of the Code, respectively.

 

ARTICLE 8 

STOCK APPRECIATION RIGHTS

 

8.1. GRANT OF STOCK APPRECIATION RIGHTS.
The Committee is authorized to grant Stock Appreciation Rights to Participants on the following terms and conditions:

 

(a) RIGHT TO PAYMENT. Upon
the exercise of a Stock Appreciation Right, the Participant to whom it is granted has the right to receive the excess, if any,
of:

 

(1) The Fair Market Value of
one Share on the date of exercise; over

 

(2) The base price of the Stock
Appreciation Right as determined by the Committee, which shall not be less than the Fair Market Value of one Share on the Grant
Date.

 

(b) OTHER TERMS. All awards
of Stock Appreciation Rights shall be evidenced by an Award Certificate. The terms, methods of exercise, methods of settlement,
form of consideration payable in settlement, and any other terms and conditions of any Stock Appreciation Right shall be determined
by the Committee at the time of the grant of the Award and shall be reflected in the Award Certificate.

 

ARTICLE 9 

PERFORMANCE AWARDS

 

9.1. GRANT OF PERFORMANCE AWARDS.
The Committee is authorized to grant Performance Shares, Performance Units or Performance-Based Cash Awards to Participants on
such terms and conditions as may be selected by the Committee. The Committee shall have the complete discretion to determine the
number of Performance Awards granted to each Participant and to designate the provisions of such Performance Awards as provided
in Section 4.3. All Performance Awards shall be evidenced by an Award Certificate or a written program established by the
Committee, pursuant to which Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions set
forth in such written program.

 

9.2. PERFORMANCE GOALS. The Committee
may establish performance goals for Performance Awards which may be based on any performance criteria selected by the Committee.
Such performance criteria may be described in terms of Company-wide objectives or in terms of objectives that relate to the performance
of the Participant, an Affiliate or a division, region, department or function within the Company or an Affiliate. The length of
a performance period shall be determined by the Committee; provided, however, that a performance period shall not be shorter than
12 months.

 

9.3. RIGHT TO PAYMENT. The grant
of a Performance Share to a Participant will entitle the Participant to receive at a specified later time a specified number of
Shares, or the equivalent cash value, if the performance goals established by the Committee are achieved and the other terms and
conditions thereof are satisfied. The grant of a Performance Unit to a Participant will entitle the Participant to receive at a
specified later time a specified dollar value, which may be settled in cash or other property, including Shares, variable under
conditions specified in the Award, if the performance goals in the Award are achieved and the other terms and conditions thereof
are satisfied. The grant of a Performance-Based Cash Award to a Participant will entitle the Participant to receive at a specified
later time a specified dollar value in cash variable under conditions specified in the Award, if the performance goals in the Award
are achieved and the other terms and conditions thereof are satisfied. The Committee shall set performance goals and other terms
or conditions to payment of the Performance Awards in its discretion which, depending on the extent to which they are met, will
determine the value of the Performance Awards that will be paid to the Participant.

 

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9.4. OTHER TERMS. Performance Awards
may be payable in cash, Stock or other property, and have such other terms and conditions as determined by the Committee and reflected
in the Award Certificate. For purposes of determining the number of Shares to be used in payment of a Performance Award denominated
in cash but payable in whole or in part in Shares or Restricted Stock, the number of Shares to be so paid will be determined by
dividing the cash value of the Award to be so paid by the Fair Market Value of a Share on the date of determination by the Committee
of the amount of the payment under the Award, or, if the Committee so directs, the date immediately preceding the date the Award
is paid.

 

ARTICLE 10 

RESTRICTED STOCK AND RESTRICTED STOCK
UNIT AWARDS

 

10.1. GRANT OF RESTRICTED STOCK AND
RESTRICTED STOCK UNITS. The Committee is authorized to make Awards of Restricted Stock or Restricted Stock Units to Participants
in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted Stock or Restricted
Stock Units shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the
Award.

 

10.2. ISSUANCE AND RESTRICTIONS.
Restricted Stock or Restricted Stock Units shall be subject to such restrictions on transferability and other restrictions as the
Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock or dividend equivalents on the Restricted Stock Units) covering a period of time specified by
the Committee (the “Restriction Period”). These restrictions may lapse separately or in combination at such
times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee
determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special
Plan document governing an Award, the Participant shall have all of the rights of a stockholder with respect to the Restricted
Stock, and the Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units until such time
as Shares of Stock are paid in settlement of the Restricted Stock Units.

 

10.3. FORFEITURE. Except for certain
limited situations (including the death or Disability of the Participant or a Change in Control referred to in Section 14.8),
Restricted Stock Awards and Restricted Stock Unit Awards subject solely to continued employment restrictions shall have a Restriction
Period of not less than three years from the Grant Date (but permitting pro-rata vesting over such time). Except as otherwise determined
by the Committee at the time of the grant of the Award or thereafter, immediately after termination of Continuous Status as a Participant
during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period,
Restricted Stock or Restricted Stock Units that are at that time subject to restrictions shall be forfeited.

 

10.4. DELIVERY OF RESTRICTED STOCK.
Shares of Restricted Stock shall be delivered to the Participant at the time of grant either by book-entry registration or by delivering
to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees)
designated by the Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates
representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

 

ARTICLE 11 

DEFERRED STOCK UNITS

 

11.1. GRANT OF DEFERRED STOCK UNITS.
The Committee is authorized to grant Deferred Stock Units to Participants subject to such terms and conditions as may be selected
by the Committee. Deferred Stock Units shall entitle the Participant to receive Shares of Stock (or the equivalent value in cash
or other property if so determined by the Committee) at a future time as determined by the Committee, or as determined by the Participant
within guidelines established by the Committee in the case of voluntary deferral elections. An Award of Deferred Stock Units shall
be evidenced by an Award Certificate setting forth the terms and conditions applicable to the Award.

 

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ARTICLE 12 

DIVIDEND EQUIVALENTS

 

12.1. GRANT OF DIVIDEND EQUIVALENTS.
The Committee is authorized to grant Dividend Equivalents to Participants, in connection with other Awards or on a freestanding
basis, subject to such terms and conditions as may be selected by the Committee. Dividend Equivalents shall entitle the Participant
to receive payments equal to dividends with respect to all or a portion of the number of Shares subject to any Award, as determined
by the Committee. The Committee may provide that Dividend Equivalents be paid or distributed when accrued or be deemed to have
been reinvested in additional Shares or units equivalent to Shares, or otherwise reinvested. 

 

ARTICLE 13 

STOCK OR OTHER STOCK-BASED AWARDS

 

13.1. GRANT OF STOCK OR OTHER STOCK-BASED
AWARDS. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards
that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares or other property,
as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation Shares awarded purely as
a “bonus” and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights
convertible or exchangeable into Shares, and Awards valued by reference to book value of Shares or the value of securities of or
the performance of specified Parents or Affiliates (“Other Stock-Based Awards”). Such Other Stock-Based Awards
shall also be available as a form of payment in the settlement of other Awards granted under the Plan. The Committee shall determine
the terms and conditions of such Other Stock-Based Awards. Except for certain limited situations (including the death or Disability
of the Participant or a Change in Control referred to in Section 14.8), Other Stock-Based Awards subject solely to continued
employment restrictions shall be subject to restrictions imposed by the Committee for a period of not less than three years from
the Grant Date (but permitting pro-rata vesting over such time); provided that such restrictions shall not be applicable to any
substitute awards granted under Section 14.12, grants of Other Stock-Based Awards in payment of Performance Awards pursuant
to Article 9, grants of Other Stock-Based Awards granted in lieu of cash or other compensation, or grants of Other Stock-Based
Awards on a deferred basis.

 

ARTICLE 14 

PROVISIONS APPLICABLE TO AWARDS

 

14.1. STAND-ALONE AND TANDEM AWARDS.
Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with,
any other Award granted under the Plan. Subject to Section 16.2, awards granted in addition to or in tandem with other Awards
may be granted either at the same time as or at a different time from the grant of such other Awards.

 

14.2. TERM OF AWARD. The term of
each Award shall be for the period as determined by the Committee, provided that in no event shall the term of any Incentive Stock
Option or a Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period of ten years from its Grant
Date (or, if Section 7.2(d) applies, five years from its Grant Date).

 

14.3. FORM OF PAYMENT FOR AWARDS.
Subject to the terms of the Plan and any applicable law or Award Certificate, payments or transfers to be made by the Company or
an Affiliate on the grant or exercise of an Award may be made in such form as the Committee determines at or after the Grant Date,
including without limitation, cash, Stock, other Awards, or other property, or any combination, and may be made in a single payment
or transfer or in installments, in each case determined in accordance with rules adopted by, and at the discretion of, the Committee.

 

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14.4. LIMITS ON TRANSFER. No right
or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor
of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant
to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall be assignable or transferable
by a Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option,
pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award
under the Plan; provided, however, that the Committee may (but need not) permit other transfers where the Committee concludes that
such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive
Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking
into account any factors deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable
Awards.

 

14.5. BENEFICIARIES. Notwithstanding
Section 14.4, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights
of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions
of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise
provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated
or survives the Participant, payment shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation
may be changed or revoked by a Participant at any time provided the change or revocation is filed with the Company.

 

14.6. STOCK CERTIFICATES. All Stock
issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable
to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue
instructions to the transfer agent to reference restrictions applicable to the Stock.

 

14.7. ACCELERATION UPON DEATH OR DISABILITY.
Except as otherwise provided in the Award Certificate or any special Plan document governing an Award, upon the Participant’s
death or Disability during his or her Continuous Status as a Participant, (i) all of such Participant’s outstanding Options,
SARs, and other Awards in the nature of rights that may be exercised shall become fully exercisable, (ii) all time-based vesting
restrictions on the Participant’s outstanding Awards shall lapse, and (iii) the target payout opportunities attainable
under all of such Participant’s outstanding performance-based Awards shall be deemed to have been fully earned as of the
date of termination based upon (A) an assumed achievement of all relevant performance goals at the “target” level
if the date of termination occurs during the first half of the applicable performance period, or (B) the actual level of achievement
of all relevant performance goals against target, if the date of termination occurs during the second half of the applicable performance
period, and, in either such case, there shall be a pro rata payout to the Participant or his or her estate within thirty (30) days
following the date of termination (unless a later date is required by Section 17.16 hereof) based upon the length of time within
the performance period that has elapsed prior to the date of termination. Any Awards shall thereafter continue or lapse in accordance
with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive Stock Options
to exceed the dollar limitation set forth in Section 7.2(c), the excess Options shall be deemed to be Nonstatutory Stock Options.

 

14.8. TREATMENT UPON A CHANGE IN CONTROL.
The provisions of this Section 14.8 shall apply in the case of a Change in Control, unless otherwise provided in the Award
Certificate or any special Plan document or separate agreement with a Participant governing an Award.

 

(a) Awards not Assumed or Substituted
by Surviving Corporation. Upon the occurrence of a Change in Control, and except with respect to any Awards assumed by the
Surviving Corporation or otherwise equitably converted or substituted in connection with the Change in Control in a manner approved
by the Committee or the Board: (i) outstanding Options, SARs, and other Awards in the nature of rights that may be exercised
shall become fully exercisable, (ii) time-based vesting restrictions on outstanding Awards shall lapse, and (iii) the
target payout opportunities attainable under outstanding performance-based Awards shall be deemed to have been fully earned as
of the effective date of the Change in Control based upon (A) an assumed achievement of all relevant performance goals at
the “target” level if the Change in Control occurs during the first half of the applicable performance period, or (B) the
actual level of achievement of all relevant performance goals against target, if the Change in Control occurs during the second
half of the applicable performance period, and, in either such case, there shall be pro rata payout to Participants within thirty
(30) days following the Change in Control (unless a later date is required by Section 17.16 hereof) based upon the length
of time within the performance period that has elapsed prior to the Change in Control. Any Awards shall thereafter continue or
lapse in accordance with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive
Stock Options to exceed the dollar limitation set forth in Section 7.2(c), the excess Options shall be deemed to be Nonstatutory
Stock Options.

 

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(b) Awards Assumed or Substituted by
Surviving Corporation. With respect to Awards assumed by the Surviving Corporation or otherwise equitably converted or substituted
in connection with a Change in Control: if within two years after the effective date of the Change in Control, a Participant’s
employment is terminated without Cause or the Participant resigns for Good Reason, then (i) all of that Participant’s
outstanding Options, SARs and other Awards in the nature of rights that may be exercised shall become fully exercisable, (ii) all
time-based vesting restrictions on the his or her outstanding Awards shall lapse, and (iii) the target payout opportunities
attainable under all outstanding of that Participant’s performance-based Awards shall be deemed to have been fully earned
as of the date of termination based upon (A) an assumed achievement of all relevant performance goals at the “target”
level if the date of termination occurs during the first half of the applicable performance period, or (B) the actual level
of achievement of all relevant performance goals against target, if the date of termination occurs during the second half of the
applicable performance period, and, in either such case, there shall be pro rata payout to such Participant within thirty (30) days
following the date of termination of employment (unless a later date is required by Section 17.16 hereof) based upon the length
of time within the performance period that has elapsed prior to the date of termination of employment. With regard to each Award,
a Participant shall not be considered to have resigned for Good Reason unless either (i) the Award Certificate includes such
provision or (ii) the Participant is party to an employment, severance or similar agreement with the Company or an Affiliate
that includes provisions in which the Participant is permitted to resign for Good Reason. Any Awards shall thereafter continue
or lapse in accordance with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes
Incentive Stock Options to exceed the dollar limitation set forth in Section 7.2(c), the excess Options shall be deemed to
be Nonstatutory Stock Options.

 

14.9. ACCELERATION FOR ANY REASON.
Regardless of whether an event has occurred as described in Section 14.7 or 14.8 above, the Committee may in its sole discretion
at any time determine that all or a portion of a Participant’s Options, SARs, and other Awards in the nature of rights that
may be exercised shall become fully or partially exercisable, that all or a part of the time-based vesting restrictions on all
or a portion of the outstanding Awards shall lapse, and/or that any performance-based criteria with respect to any Awards shall
be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in its sole discretion, declare.
The Committee may discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant
to this Section 14.9. Notwithstanding anything in the Plan, including this Section 14.9, the Committee may not accelerate
the payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code.

 

14.10. TERMINATION OF EMPLOYMENT.
Whether military, government or other service or other leave of absence shall constitute a termination of employment shall be determined
in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive. A Participant’s
Continuous Status as a Participant shall not be deemed to terminate (i) in a circumstance in which a Participant transfers
from the Company to an Affiliate, transfers from an Affiliate to the Company, or transfers from one Affiliate to another Affiliate,
or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or
disposition of the Participant’s employer from the Company or any Affiliate. To the extent that this provision causes Incentive
Stock Options to extend beyond three months from the date a Participant is deemed to be an employee of the Company or a Parent
or Subsidiary which constitutes a “parent corporation” or a “subsidiary corporation” for purposes of Sections
424(e) and 424(f) of the Code, respectively, the Options held by such Participant shall be deemed to be Nonstatutory Stock Options.

 

14.11. FORFEITURE EVENTS. The Committee
may specify in an Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any
otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to, termination
of employment for Cause, violation of material Company or Affiliate policies, breach of non-competition, confidentiality or other
restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business
or reputation of the Company or any Affiliate.

 

14.12. SUBSTITUTE AWARDS. The Committee
may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of another entity who become
employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing entity with the Company
or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing corporation. The
Committee may direct that the substitute Awards be granted on such terms and conditions as the Committee considers appropriate
in the circumstances.

 

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ARTICLE 15 

CHANGES IN CAPITAL STRUCTURE

 

15.1. MANDATORY ADJUSTMENTS. In
the event of a nonreciprocal transaction between the Company and its shareholders that causes the per-share value of the Stock
to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash
dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such adjustments
to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately
resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares that may
be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of
the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award;
and (iv) any other adjustments that the Committee determines to be equitable. Notwithstanding the foregoing, the Committee shall
not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the stock right
under Treas. Reg. Section 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment
for purposes of Code Section 409A. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split),
a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number
of Shares, the authorization limits under Section 5.1 shall automatically be adjusted proportionately, and the Shares then subject
to each Award shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately
without any change in the aggregate purchase price therefor.

 

15.2 DISCRETIONARY ADJUSTMENTS.
Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including, without limitation,
any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 15.1),
the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that Awards
will become immediately vested and exercisable and will expire after a designated period of time to the extent not then exercised,
(iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of
the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise price
of the Award, (v) that performance targets and performance periods for Performance Awards will be modified or (vi) any combination
of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether
or not such Participants are similarly situated.

 

15.3 GENERAL. Any discretionary
adjustments made pursuant to this Article 15 shall be subject to the provisions of Section 16.2. To the extent that any adjustments
made pursuant to this Article 15 cause Incentive Stock Options to cease to qualify as Incentive Stock Options, such Options shall
be deemed to be Nonstatutory Stock Options.

 

ARTICLE 16 

AMENDMENT, MODIFICATION AND TERMINATION

 

16.1. AMENDMENT, MODIFICATION AND TERMINATION.
The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval;
provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially
increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan, (iii) materially
expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise
constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing
or other requirements of an exchange, then such amendment shall be subject to stockholder approval; and provided, further, that
the Board or Committee may condition any other amendment or modification on the approval of stockholders of the Company for any
reason, including by reason of such approval being necessary or deemed advisable to (i) permit Awards made hereunder to be
exempt from liability under Section 16(b) of the 1934 Act, (ii) to comply with the listing or other requirements of an
exchange, or (iii) to satisfy any other tax, securities or other applicable laws, policies or regulations.

 

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16.2. AWARDS PREVIOUSLY GRANTED.
At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant;
provided, however:

 

(a) Subject to the terms of the
applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s consent, reduce
or diminish the value of such Award;

 

(b) The original term of an Option
may not be extended without the prior approval of the stockholders of the Company;

 

(c) Except as otherwise provided
in Article 15, the Committee shall not be permitted to (i) lower the exercise price per Share of an Option after it is granted,
(b) cancel an Option when the exercise price per Share exceeds the Fair Market Value of the underlying Shares in exchange
for another Award, or (c) take any other action with respect to an Option that may be treated as a repricing under the rules
and regulations of an exchange, without the prior approval of the stockholders of the Company; and

 

(d) No termination, amendment,
or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of
the Participant affected thereby.

 

ARTICLE 17 

GENERAL PROVISIONS

 

17.1. NO RIGHTS TO AWARDS; NON-UNIFORM
DETERMINATIONS. No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither
the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations
made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive,
Awards (whether or not such Eligible Participants are similarly situated).

 

17.2. NO SHAREHOLDER RIGHTS. No
Award gives a Participant any of the rights of a stockholder of the Company unless and until Shares are in fact issued to such
person in connection with such Award.

 

17.3. WITHHOLDING. The Company or
any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an
amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law
to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. If Shares
are surrendered to the Company to satisfy withholding obligations in excess of the minimum withholding obligation, such Shares
must have been held by the Participant as fully vested shares for such period of time, if any, as necessary to avoid the recognition
of an expense under generally accepted accounting principles. The Company shall have the authority to require a Participant to
remit cash to the Company in lieu of the surrender of Shares for tax withholding obligations if the surrender of Shares in satisfaction
of such withholding obligations would result in the Company’s recognition of expense under generally accepted accounting
principles. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award
is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding
from the Award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes.

 

17.4. NO RIGHT TO CONTINUED SERVICE.
Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with
or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer
or consultant at any time, nor confer upon any Participant any right to continue as an employee, officer or consultant of the Company
or any Affiliate, whether for the duration of a Participant’s Award or otherwise.

 

17.5. UNFUNDED STATUS OF AWARDS.
The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to any payments
not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant
any rights that are greater than those of a general creditor of the Company or any Affiliate. This Plan is not intended to be subject
to the Employment Retirement Income Security Act of 1974, as amended.

 

    	14

    	 

    

 

17.6. RELATIONSHIP TO OTHER BENEFITS.
No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit
sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in such other plan.

 

17.7. EXPENSES. The expenses of
administering the Plan shall be borne by the Company and, if applicable, its Affiliates. The allocation of expenses among the Company
and its Affiliates shall be as agreed to by the Company and the applicable Affiliates.

 

17.8. TITLES AND HEADINGS. The titles
and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the
Plan, rather than such titles or headings, shall control.

 

17.9. GENDER AND NUMBER. Except
where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include
the singular and the singular shall include the plural.

 

17.10. FRACTIONAL SHARES. No fractional
Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
Shares or whether such fractional Shares shall be eliminated by rounding up or down.

 

17.11. GOVERNMENT AND OTHER REGULATIONS.

 

(a) Notwithstanding any other provision
of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an
affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933
Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under the 1933
Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration
requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

 

(b) Notwithstanding any other provision
of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered
by an Award upon any exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or
the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and
until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition
not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations
and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable
legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the
Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Company shall in no event
be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action
in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.

 

17.12. GOVERNING LAW. To the extent
not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws
of the State of Maryland.

 

17.13. ADDITIONAL PROVISIONS. Each
Award Certificate may contain such other terms and conditions as the Committee may determine; provided that such other terms and
conditions are not inconsistent with the provisions of the Plan.

 

17.14. NO LIMITATIONS ON RIGHTS OF COMPANY.
The grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes
in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business
or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards,
other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may issue or transfer Shares
to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate
will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by
the Committee pursuant to the provisions of the Plan.

 

    	15

    	 

    

 

17.15. INDEMNIFICATION. Each person
who is or shall have been a member of the Committee, or of the Board, or an officer of the Company to whom authority was delegated
in accordance with Article 4 shall be indemnified and held harmless by the Company against and from any loss, cost, liability,
or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes
to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful
misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws,
as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

17.16. SPECIAL PROVISIONS RELATED TO
SECTION 409A OF THE CODE.

 

(a) General. It is intended that the payments
and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the requirements
of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless,
the tax treatment of the benefits provided under the Plan or any Award is not warranted or guaranteed. Neither the Company, its
Affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties
or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award.

 

(b) Definitional Restrictions. Notwithstanding
anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would constitute
non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable,
or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan or any Award Certificate by reason
of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such amount or benefit
will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason
of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet
any description or definition of “change in control event”, “disability” or “separation from service”,
as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that
may be available under such definition). This provision does not prohibit the vesting of any Award upon a Change in Control, Disability
or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, such
payment or distribution shall be made on the next earliest payment or distribution date or event specified in the Award Certificate
that is permissible under Section 409A of the Code. If this provision prevents the application of a different form of payment of
any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.

 

(c) Allocation among Possible Exemptions.
If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described in Treas.
Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions,
the Company (acting through the Committee) shall determine which Awards or portions thereof will be subject to such exemptions.

 

(d) Six-Month Delay in Certain Circumstances.
Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would constitute
non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable
under this Plan or any Award Certificate by reason of a Participant’s separation from service during a period in which the
Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee
under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment
of employment taxes):

 

(i) the amount of such non-exempt deferred
compensation that would otherwise be payable during the six-month period immediately following the Participant’s separation
from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s
separation from service (or, if the Participant dies during such period, within 30 days after the Participant’s death) (in
either case, the “Required Delay Period”), and

 

    	16

    	 

    

 

(ii) the normal payment or distribution
schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

 

For purposes of this Plan, the term “Specified
Employee” has the meaning given such term in Section 409A of the Code and the final regulations thereunder, provided, however,
that, as permitted in such final regulations, the Company’s Specified Employees and its application of the six-month delay
rule of 409A(a)(2)(B)(i) of the Code shall be determined in accordance with rules adopted by the Board or any committee of the
Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company,
including this Plan.

 

(e) Grants to Employees of Affiliates. Eligible
Participants who are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Company qualifies
as an “eligible issuer of service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the final
regulations under Section 409A of the Code.

 

(f) Fair Market Value of Unlisted Stock.
If the Stock is not listed on a securities exchange, the Fair Market Value of the Stock as of any given date shall, for purposes
of the Plan and any Award, be determined by such method as the Committee determines in good faith to be reasonable and in compliance
with Section 409A of the Code.

 

(g) Design Limits on Options and SARs. Notwithstanding
anything in this Plan or any Award Certificate, no Option or SAR granted under this Plan shall (i) provide for Dividend Equivalents
or (ii) have any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or
disposition of the Option or SAR.

 

(h) Timing of Distribution of Dividend Equivalents.
Unless otherwise provided in the applicable Award Certificate, any Dividend Equivalents granted with respect to an Award hereunder
will be paid or distributed no later than the 15th day of the 3rd month following the later of (i) the calendar year in which the
corresponding dividends were paid to shareholders, or (ii) the first calendar year in which the Participant’s right to such
Dividends Equivalents is no longer subject to a substantial risk of forfeiture.

 

    	17

    	 

    

 

The foregoing is hereby acknowledged as
being the Phillips Edison – ARC Grocery Center REIT II, Inc. 2013 Long-Term Incentive Plan as adopted by the Board on November 7,
2013, approved by the sole stockholder on November 7, 2013.

 

	PHILLIPS EDISON – ARC GROCERY CENTER REIT II, INC.	 
	 	 	 
	By:	/s/ R. Mark Addy
	

	Name:	R. Mark Addy	 
	Title:	Co-President and Chief Operating Officer	 

 

    	18AGREEMENT
OF SALE

 

BETWEEN

 

Three
WM Real Estate, LLC,

Three
WM Operating, LLC,

Four
WM Real Estate, LLC,

 

AND

 

Four
WM Operating, LLC,

 

collectively,
as Seller

 

AND

 

Woodbury
Mews III, LLC

Woodbury
Mews IV, LLC

Woodbury
Mews Land Parcels, LLC

 

collectively,
as Purchaser

 

June
26, 2013 

 

    	 

    	 

    

 

TABLE
OF CONTENTS

Page

 

[To
be inserted]

 

    	1

    	 

    

 

AGREEMENT
OF SALE

 

This
AGREEMENT OF SALE (“Agreement”) is made on June 26, 2013 (the “Effective Date”) between
THREE WM REAL ESTATE, LLC (“Three Real Estate”), THREE WM OPERATING, LLC (“Three
Operating”), FOUR WM REAL ESTATE, LLC (“Four Real Estate”), and FOUR WM OPERATING,
LLC (“Four Operating”), each a Delaware limited liability company (individually and collectively,
the “Seller”), Woodbury Mews III, LLC, Woodbury Mews IV, LLC, and
Woodbury Mews Land Parcels, LLC, each a Delaware limited liability company (individually and collectively, the “Purchaser”).

 

WITNESSETH:

 

A.           Three
Real Estate is the owner in fee simple of the land located at 124 Green Avenue, Woodbury, New Jersey, more particularly described
on Exhibit A-2 attached hereto (the “Three Land”), and has leased the Three Land to Three Operating
pursuant to a lease dated February 1, 2011 (the “Three Operating Lease”) for purposes of operating an assisted
living facility for senior citizens as described on Exhibit A-1 annexed hereto (the “Three Facility”).

 

B.           Four
Real Estate is the owner in fee simple of the land located at 122 Green Avenue, Woodbury, New Jersey, more particularly described
on Exhibit A-2 attached hereto (the “Four Land”), and has leased the Four Land to Four Operating
pursuant to a lease dated February 1, 2011 (the “Four Operating Lease”) for purposes of operating an independent
living facility for senior citizens as described on Exhibit A-1 annexed hereto (the “Four Facility”).
The Three Operating Lease and the Four Operating Lease are hereinafter individually referred to as an “Operating Lease”
and collectively as the “Operating Leases.”

 

C.           Upon
the terms and conditions hereinafter set forth, Seller agrees to sell and convey fee title to the Three Facility and the Four Facility
to Purchaser (each, a “Facility,” and collectively, the “Facilities”).

 

D.           The
Facilities are included in the Property (as hereinafter defined).

 

E.           Seller
wishes to sell the Property to Purchaser and Purchaser wishes to purchase the Property in accordance with and subject to the terms
and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the agreement set forth herein and for other good and valuable consideration, the parties hereto
agree as follows:

 

Definitions

 

“Accrued
Employee Benefits” has the meaning set forth in Section 6(n)(ii).

 

“Addit”
has the meaning set forth in Section 4(g).

 

“Adjacent
Land” means those certain parcels of real estate adjacent to the Land, identified as Block
142, Lots 1, 4, 5 and 6 on the Tax Maps of the City of Woodbury, Gloucester County, New Jersey, which are the burdened parcels
under a certain Declaration of Easements recorded on February 2, 2011 in the Gloucester County Clerk’s office in Deed Book
4843, Page 287, benefitting the Land.

 

    	2

    	 

    

 

“Agreed
Upon Title Defect” has the meaning set forth in Section 4(b).

 

“Agreement”
has the meaning set forth in the introductory paragraph.

 

“Affiliate”
With respect to any person or entity, (A) all persons or entities that, directly or indirectly, control, are controlled by, or
under common control with, such person or entity; or (B) all persons or entities that, directly or indirectly, own, are owned by
or under common ownership with, such person or entity.  For purposes of this definition, “control” and “own”
shall mean ownership, directly or indirectly, of more than fifty percent (50%) of the issued and outstanding equity interests in
an entity, together with the ability, through the ownership of said equity interests, by contract, or otherwise, to direct the
management of such entity.

 

“Allocated
Purchase Price” shall have the meaning set forth in Section 2(a).

 

“Annual
Threshold” has the meaning set forth in Section 28(b).

 

“Applicable
Law” shall mean any federal, state, municipal, county, local, foreign, or other statute, law, ordinance, rule or regulation
or any order, writ, injunction, judgment, plan or decree of any court, arbitrator, department, commission, board, bureau, agency,
authority, instrumentality or other body, whether federal, state, municipal, county, local, foreign or other.

 

“Appurtenances”
has the meaning set forth in Section 3(a).

 

“Assumed
Obligations” has the meaning set forth in Section 3(c).

 

“Business
Day” means any day other than (i) Saturday, (ii) Sunday, or (iii) any other day when federally insured banks in New York,
New York are required or authorized to be closed.

 

“Cap”
has the meaning set forth in Section 18(d)(iv).

 

“City”
has the meaning set forth in Section 26.

 

“City
Agreement” has the meaning set forth in Section 26.

 

“Closing”
has the meaning set forth in Section 9(a).

 

“Closing
Date” has the meaning set forth in Section 9(a).

 

“Closing
Statement” has the meaning set forth in Section 10(a)(xiv).

 

“Code”
has the meaning set forth in Section 6(q).

 

“Commercial
Leases” shall mean all leases, rental, use and occupancy agreements, commitments, documents and instruments relating
to any Property and all related documents, instruments, agreements, letters of credit, deposits and other items (including, without
limitation, guarantees) other than the Residency Agreements or the Operating Leases.

 

“Deeds”
has the meaning set forth in Section 10(a)(i).

 

“Deposit”
has the meaning set forth in Section 2(b)(ii).

 

“Diligence
Materials” has the meaning set forth in Section 19.

 

    	3

    	 

    

 

“Document”
shall mean this Agreement, all Exhibits and Schedules hereto, and each other agreement, certificate or instrument to be delivered
pursuant to this Agreement.

 

“Due
Diligence Deadline” means 5 P.M. Eastern Standard Time on the date which is forty-five (45) days after the Effective
Date of this Agreement.

 

“Due
Diligence Period” shall mean the period commencing on the Effective Date and expiring on the Due Diligence Deadline.

 

“Effective
Date” has the meaning set forth in the introductory paragraph.

 

“Employee
Contracts” has the meaning set forth in Section 6(n)(i).

 

“Environmental
Laws” means all past, present or future federal, state and local laws, statutes, regulations, directives, ordinances,
rules, policies, guidelines, orders, decrees, arbitration awards, permits and the common law, which pertain to environmental matters,
contamination of any type whatsoever or health and safety matters, as such have been amended, modified or supplemented from time
to time (including all present and future amendments thereto and re-authorizations thereof).

 

“Environmental
Reports” means those environmental reports set forth on Schedule 3 attached hereto.

 

“Escrow
Agent” shall mean Acres Land Title Agency, Agent for Chicago Title Insurance Company, c/o Debbie Bannworth, 55 Essex
Street, Millburn, New Jersey 07041, Phone: (973)376-4643, Fax: (973)912-8195.     

 

“Existing
Manager” shall mean Senior Management of New Jersey, LLC.

 

“Facility”
has the meaning set forth in the recitals.

 

“Facilities”
has the meaning set forth in the recitals.

 

“Floor”
has the meaning set forth in Section 18(d)(vi).

 

“Four
Facility” has the meaning given in the recitals.

 

“Four
Land” has the meaning given in the recitals.

 

“Four
Operating” has the meaning given in the recitals.

 

“Four
Operating Lease” has the meaning given in the recitals.

 

“Four
Real Estate” has the meaning given in the recitals.

 

“GAAP”
shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other
statements by such entity as may be in general use by significant segments of the U.S. accounting profession.

 

    	4

    	 

    

 

“Governmental
Payor Program” has the meaning set forth in Section 6(u)(i).

 

“Guarantor”
has the meaning set forth in Section 5(b)(ix).

 

“Guaranty”
has the meaning set forth in Section 5(b)(ix).

 

“Hired
Employees” has the meaning set forth in Section 10(e).

 

“Hazardous
Materials” shall mean, without limitation, polychlorinated biphenyls, urea formaldehyde, radon gas, lead paint, radioactive
matter, medical waste, asbestos, petroleum products, including crude oil or any fraction thereof, natural gas, natural gas liquids,
liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas or such synthetic gas), and any substance,
material, waste, pollutant or contaminant that is listed or defined or that may be considered as hazardous, infectious or toxic
under any applicable federal, state or local law, statute, regulation, directive, ordinances, rules, policies, guidelines, orders,
decrees or common law.

 

“HSR
Act” has the meaning set forth in Section 8(e).

 

“Improvements”
has the meaning set forth in Section 3(a).

 

“Income
Support Agreement” has the meaning set forth in Section 28(a).

 

“Income
Support Payment” has the meaning set forth in Section 28(a).

 

“Indemnification
Loss” means, with respect to any Indemnified Party, any liability, obligation, damage, loss, cost or expense of any kind
or nature whatsoever, whether accrued or unaccrued, including, without limitation, reasonable attorneys’ fees and expenses
and court costs, incurred by such Indemnified Party as a result of the act, omission or occurrence in question.

 

“Indemnified
Party” has the meaning set forth in Section 18(d)(i).

 

“Indemnifying
Party” has the meaning set forth in Section 18(d)(i).

 

“Individual
Property” has the meaning set forth in Section 2(a).

 

“Initial
Deposit” has the meaning set forth in Section 2(b)(i).

 

“Intangibles”
has the meaning set forth in Section 3(a). 

 

“Interim
Licensure Arrangements” means the agreement annexed hereto as Exhibit H.

 

“Interim
Period” means: in the event the Three Facility is subject to an Interim Licensure Arrangement, the period of time from
the Closing Date until the Interim Licensure Arrangement expires or is earlier terminated in accordance with its terms.

 

“Knowledge
Parties” shall have the meaning set forth in Section 6.

 

“Land”
has the meaning set forth in Section 3(a).

 

    	5

    	 

    

 

“Licenses”
shall mean all certificates, licenses, and permits issued by governmental authorities which are required to be held by an owner
or tenant in connection with the ownership, use, occupancy, operation, and maintenance of the Property as an independent and assisted
living facility.

 

“Lists”
has the meaning set forth in Section 6(m)(i).

 

“LSRP”
has the meaning set forth in Section 4(f)(ii).

 

“Management
Agreement” has the meaning set forth in Section 4(g).

 

“Material
Change in Occupancy” means, with respect to the Facilities, any decrease in the Occupancy Rate at the Facilities by more
than ten percent (10%) from the Occupancy Rate of the Facilities as of the Due Diligence Deadline.

 

“NOI”
shall mean, for any period, Operating Income for such period minus Operating Expenses for such period.

 

“Occupancy
Rate” shall mean the percentage derived by dividing the actual number of occupied units by the total number of units
in the Facilities, as determined on the date each month that resident fees are billed; provided, however, that units which provide
for occupancy of more than one resident shall be considered as a fraction. For illustration purposes only, a double occupancy unit
which is occupied by one resident would constitute 1⁄2 (0.5) of an occupied unit for purposes of calculating the Occupancy
Rate.

 

“OFAC”
has the meaning set forth in Section 6(m).

 

“Operating
Expenses” shall mean, for any period, without duplication, all commercially reasonable expenses actually paid or payable
by Purchaser during such period in connection with the operation, management, maintenance, repair and use of the Property, determined
on an accrual basis, and in accordance with GAAP. Operating Expenses specifically shall include (i) the property management fees
actually paid under the Management Agreement, (ii) administrative, payroll (including all reasonable and customary bonuses
paid or expected to be paid to employees), security and general expenses for the Property, (iii) the cost of utilities, inventories
and fixed asset supplies consumed in the operation of the Property, (iv) a reasonable reserve for uncollectible accounts,
(v) costs and fees of independent professionals (including, without limitation, legal, accounting, consultants and other professional
expenses) or other third parties retained to perform services in connection with the operation of the Property in the ordinary
course of business, (vi) operational equipment and other lease payments in the ordinary course of business, (vii) real property
taxes and payments under the PILOT Agreement with respect to the Real Property, (viii) insurance premiums with respect to the Property,
and (ix) all other commercially reasonable expenses paid or payable, or reasonably expected to be incurred by Purchaser during
such period in connection with the operation, management, maintenance, repair and use of the Property. Notwithstanding the foregoing,
Operating Expenses shall not include (1) depreciation or amortization, (2) income taxes, (3) any expenses (including
legal, accounting and other professional fees, expenses and disbursements) incurred in connection with the sale, exchange, transfer,
financing or refinancing of all or any portion of the Property, (4) amounts expended for replacements and alterations to the
Property and required to be capitalized according to GAAP, (5) the scheduled principal and interest payments due under any
mortgage financing with respect to the Property; (6) costs or expenses outside the ordinary course of business; and (7) costs or
expenses associated with the operation of the legal entity (or entities) that constitutes Purchaser to the extent they are separate
and apart from the costs of the operation of the Property.

 

    	6

    	 

    

 

“Operating
Income” shall mean, for any period, all actual income of Purchaser during such period from the use, ownership or operation
of the Property, including without limitation, (i) all amounts actually paid to Purchaser as Rent and other amounts under lease,
license or occupancy agreements relating to the Property; (ii) all amounts payable by Medicaid with respect to the relevant period;
(iii) business interruption insurance proceeds allocable to the applicable reporting period; and (iv) all other amounts (to the
extent not covered pursuant to clauses (i) through (iii) of this sentence) which in accordance with GAAP, are included in Purchaser’s
annual financial statements as income attributable to the Property.

 

“Operating
Lease or Operating Leases” has the meaning given in the recitals.

 

“Order
or Orders” has the meaning set forth in Section 6(m).

 

“Permitted
Exceptions” has meaning set forth in Section 4(b).

 

“Personalty”
has the meaning set forth in Section 3(a).

 

“PILOT
Agreement” has the meaning set forth in Section 26.

 

“PILOT
Assignment” has the meaning set forth in Section 26.

 

“Prior
Owner Diligence Materials” has the meaning set forth in Section 6.

 

“Property”
has the meaning set forth in Section 3(a).

 

“Property
Agreement” has the meaning set forth in Section 3(a).

 

“Purchaser’s
Designee” has the meaning set forth in Section 2(d).

 

“Purchase
Price” has the meaning set forth in Section 2(a).

 

“Purchaser”
has the meaning set forth in introductory paragraph.

 

“Purchaser
Commissioned Reports” means any and all reports commissioned at any time prior to Closing by Purchaser or its agents
or Affiliates relating to the environmental or physical condition of any Individual Property, including without limitation Phase
I or Phase II environmental reports, survey, mechanical reports, structural or engineering, and zoning reports.

 

“Purchaser
Knowledge” shall mean in all cases the actual knowledge of the following individuals (or any one of them): Purchaser
Knowledge Parties, after reasonable inquiry with the consultants performing due diligence for Purchaser. In no event shall Seller
be entitled to assert any cause of action against any of the Purchaser Knowledge Parties with respect to this Agreement or any
breach hereof, nor shall any of the Purchaser Knowledge Parties have any personal liability whatsoever for any matter under or
related to this Agreement.

 

“Purchaser
Knowledge Parties” shall mean John Mark Ramsey or Kevin Thomas.

 

“Purchaser
Permits” has the meaning set forth in Section 7(b).

 

    	7

    	 

    

 

“Quarter”
has the meaning set forth in Section 28(a).

 

“Quarterly
Threshold” has the meaning set forth in Section 28(a).

 

“Real
Property” means the Land and the Improvements.

 

“Rent
Roll” has the meaning set forth in Section 6(k) 

 

“Rents”
shall mean all rents, moneys payable as damages (including payments by reason of the rejection of a lease in a bankruptcy proceeding)
or in lieu of rent, royalties (including all oil and gas or other mineral royalties and bonuses), income, fees, receivables, receipts,
revenues, deposits (including security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered,
and other payment and consideration of whatever form or nature received by or paid to or for the account of or benefit of Purchaser
or any of its agents or employees from any and all sources arising from or attributable to the Property.

 

“Required
Cure Items” has the meaning set forth in Section 4(b).

 

“Required
Governmental Approvals” means all Licenses, permits, authorizations and certifications from all governmental authorities
or otherwise that are necessary for the management and operation of the Facilities for their current uses following the Closing
Date, including any State of New Jersey facility license, certificate of need and any certifications from Medicaid.

 

“Residency
Agreements” shall mean all leases, rental, use, occupancy and reservation agreements, commitments, documents and instruments
relating to any Property other than Commercial Leases or Operating Leases and all related documents, instruments, agreements, letters
of credit, deposits and other items (including, without limitation, guarantees) which relate to the occupancy of portions of the
Property by individuals for independent living or assisted living purposes, as applicable.

 

“Resident
Deposit” has the meaning set forth in Section 3(a).

 

“Second
Deposit” has the meaning set forth in Section 2(b)(ii).

 

“Seller”
has the meaning set forth in introductory paragraph.

 

“SN”
has the meaning set forth in Section 14.

 

“Substantial
Portion” has the meaning set forth in Section 15(a)(ii).

 

“Survey”
has the meaning set forth in Section 4(d).

 

“Survival
Period” has the meaning set forth in Section 18(d)(v).

 

“Taking”
has the meaning set forth in Section 15(a)(i).

 

“Tax
Foreclosure Actions” has the meaning set forth in Section 25.

 

“Tax
Sale Certificates” has the meaning set forth in Section 25.

 

“Tests”
has the meaning set forth in Section 4(d)(i).

 

    	8

    	 

    

 

“Three
Facility” has the meaning given in the recitals.

 

“Three
Land” has the meaning given in the recitals.

 

“Three
Operating” has the meaning given in the recitals.

 

“Three
Operating Lease” has the meaning given in the recitals.

 

“Three
Real Estate” has the meaning given in the recitals.

 

“Title
Commitment” has the meaning set forth in Section 4(a).

 

“Title
Company” has the meaning set forth in Section 4(a).

 

“Title
Defect” has the meaning set forth in Section 4(b).

 

“Title
Expenses” has the meaning set forth in Section 4(e).

 

“Title
Insurance Policy and Title Insurance Policies” has the meaning set forth in Section 5(b)(i).

 

“Title
Notice” has the meaning set forth in Section 4(b).

 

“Transactions”
means the transactions contemplated by this Agreement.

 

“WMA”
has the meaning set forth in Section 25.

 

“Year”
has the meaning set forth in Section 28(a).

 

1.                           Purchase
and Sale. Seller agrees to sell and assign, as applicable, to Purchaser, and Purchaser agrees to purchase and assume, as
applicable, from Seller, the Property, as hereinafter defined, for the Purchase Price, as hereinafter defined, and subject to the
terms and conditions set forth in this Agreement.

 

2.                           Purchase
Price.

 

(a)          The
purchase price (the “Purchase Price”) for the Property shall be THIRTY NINE MILLION and 00/100 DOLLARS ($39,000,000.00),
subject to prorations and the adjustments expressly set forth in this Agreement. Prior to the expiration of the Due Diligence Period,
Seller and Purchaser shall agree on a reasonable allocation of the Purchase Price payable for each individual property described
on Exhibit A-2 (each, an “Individual Property”) which shall be allocated in the form set forth
on Exhibit B (each such allocated portion, an “Allocated Purchase Price”). In addition, Seller
and Purchaser shall agree on a reasonable further allocation of the Purchase Price as between (a) the Land and the Improvements,
(b) the Personalty, and (c) the Intangibles prior to the expiration of the Due Diligence Period.

 

    	9

    	 

    

 

(b)          The
Purchase Price shall be payable by Purchaser to Seller as follows:

 

(i)          Within
three (3) Business Days after the Effective Date, the sum of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) (the “Initial
Deposit”) shall be paid by electronic wire transfer of immediately available federal funds to an interest bearing account
designated by Escrow Agent or by certified check of Purchaser or bank teller’s check to the order of Escrow Agent.

 

(ii)         If
Purchaser has not terminated this Agreement prior to the Due Diligence Deadline in accordance with Section 4(d)(iii) below,
then within two (2) Business Days after the Due Diligence Deadline, the sum of Five Hundred Thousand and No/100 Dollars ($500,000.00)
(the “Second Deposit”, the Initial Deposit and the Second Deposit are hereinafter collectively referred to as
the “Deposit”) shall be paid by electronic wire transfer of immediately available federal funds to an interest
bearing account designated by Escrow Agent or by certified check of Purchaser or bank teller’s check to the order of Escrow
Agent. The Deposit shall include all interest earned thereon. In the event any check in payment of the Deposit is cancelled or
returned uncollected, Seller, at its sole option, may cancel this Agreement and/or pursue any legal remedies Seller may have against
Purchaser on such check at the sole expense of Purchaser, such remedies being cumulative and not exclusive.

 

(iii)        On
the Closing Date, the sum of Thirty Eight Million Two Hundred Fifty Thousand and No/100 Dollars ($38,250,000.00), subject to adjustment
and proration as expressly set forth in this Agreement, to be paid by electronic wire transfer of immediately available federal
funds pursuant to wiring instructions to be given by Escrow Agent or as Escrow Agent may direct to Purchaser prior to the Closing
and Purchaser shall cause Escrow Agent to distribute such funds to Seller in accordance with this Agreement.

 

(c)          Escrow
Agent shall hold and disburse the Deposit (or so much thereof as Escrow Agent is then holding) as follows:

 

(i)          Upon
the Closing, Escrow Agent is authorized and directed to pay the Deposit to Seller (or as Seller may direct).

 

(ii)         In
the event Seller terminates this Agreement pursuant to Section 13(a) below, Escrow Agent shall pay the Deposit to Seller,
who shall retain the Deposit in accordance with Section 13(a) below.

 

(iii)        In
the event this Agreement is terminated as provided in this Agreement by reason other than Purchaser's default, Escrow Agent shall
pay the Deposit to Purchaser.

 

(iv)        Escrow
Agent shall invest and reinvest the proceeds of the Deposit, and any interest earned thereon, in United States Government Treasury
Bills or Certificate(s) of Deposit or bank money market account(s) as Seller and Purchaser shall agree. If the Closing occurs,
then any interest earned on the Deposit shall be paid to Purchaser. If the Closing does not occur, then such interest shall follow
the Deposit. The party entitled to receive the interest earned on the Deposit shall pay all income taxes owed in connection therewith.
The employer identification numbers of Seller and Purchaser are respectively set forth on the signature page hereof.

 

(v)         Escrow
Agent, by signing this Agreement at the end hereof where indicated, signifies its agreement to hold the Deposit for the purposes
as provided in this Agreement. In the event of any dispute, Escrow Agent shall have the right to deposit the Deposit in court to
await the resolution of such dispute. Escrow Agent shall not incur any liability by reason of any action or non-action taken by
it in good faith or pursuant to the judgment or order of a court of competent jurisdiction. Escrow Agent shall have the right to
rely upon the genuineness of all certificates, notices and instruments delivered to it pursuant hereto, and all the signatures
thereto or to any other writing received by Escrow Agent purporting to be signed by any party hereto, and upon the truth of the
contents thereof.

 

    	10

    	 

    

 

(vi)        Except
as otherwise provided for in Section 2(c)(i) and in this paragraph below, Escrow Agent shall not pay or deliver the Deposit
to any party unless written demand is made therefor and a copy of such written demand is delivered to the other party. If Escrow
Agent does not receive a written objection from the other party to the proposed payment or delivery within five (5) Business Days
after such demand is served by personal delivery on such party, Escrow Agent is hereby authorized and directed to make such payment
or delivery. If Escrow Agent does receive such written objection within such five (5) Business Day period or if for any other reason
Escrow Agent in good faith shall elect not to make such payment or delivery, Escrow Agent shall forward a copy of the objections,
if any, to the other party or parties, and continue to hold the Deposit unless otherwise directed by written instructions from
the parties to this Agreement or by a judgment of a court of competent jurisdiction. In any event, Escrow Agent shall have the
right to refrain from taking any further action with respect to the subject matter of the escrow until it is reasonably satisfied
that such dispute is resolved or action by Escrow Agent is required by an order or judgment of a court of competent jurisdiction.
Notwithstanding anything to the contrary contained herein, if Purchaser makes a demand for the Deposit before the Due Diligence
Deadline, then the Deposit shall automatically be returned to Purchaser, and Seller shall have no right to object.

 

(vii)       In
the event that Escrow Agent shall receive conflicting instructions or objections from Purchaser or Seller, Escrow Agent shall be
entitled to consult with counsel in connection with its duties hereunder. Each of Seller and Purchaser agree to reimburse Escrow
Agent, upon demand, for one half (1/2) of the reasonable costs and expenses incurred by Escrow Agent in connection with such consultation.
In the event of litigation relating to the subject matter of the escrow, whichever of Seller or Purchaser is not the prevailing
party shall reimburse the prevailing party for any reasonable costs and fees paid by the prevailing party or paid from the escrowed
funds to Escrow Agent.

 

(viii)      Except
for any claim, action or proceeding resulting in a final determination that Escrow Agent acted in bad faith, negligently or engaged
in any type of willful misconduct, Escrow Agent shall not be responsible for any loss or delay occasioned by the closure or insolvency
of the institution with which any funds are invested in accordance with this Agreement, and shall have no liability for interest
on such funds. Escrow Agent shall not be liable for any loss or delay occasioned by the failure of said financial institution to
wire funds in a timely manner.

 

(d)          Purchaser’s
Designated Transferee. Purchaser may assign the right to take title to the Facilities to (i) a special purpose entity that
is an Affiliate of Purchaser subject to and in accordance with Section 17(e), or (ii) an
entity formed by a real estate investment trust at the request of Purchaser for the sole purposes of holding the fee simple title
to either or both of the Facilities and leasing them to Purchaser or its Affiliate (“Purchaser’s Designee”);
provided, however, that such designation shall not delay the Closing Date and Purchaser shall notify Seller of such assignment
not less than five (5) Business Days prior to the Closing Date. Any assignment by Purchaser to Purchaser’s Designee shall
not release or relieve Purchaser from any duties, obligations or rights arising under this Agreement.

 

    	11

    	 

    

 

3.                           Property.

 

(a)          “Property”
means, except for the items listed in Section 3(b), all of Seller’s right, title and interest in: (i) the Three Land
and the Four Land (collectively, the “Land”); (ii) all easements, and other related rights appurtenant to the
Land (collectively, “Appurtenances”); (iii) all of the buildings, structures, fixtures and other improvements
comprising real property and located on the Land and all property which might be considered personal property except for the fact
that it is inextricably related or attached to any such buildings, structures, fixtures and/or other improvements (collectively,
“Improvements”); (iv) all furnishings, machinery, equipment, vehicles, supplies,
inventory, linens, medicine, foodstuffs, consumable and other personal property of any type or description, including, without
limitation, all beds, chairs, sofas, wheelchairs, tables, kitchen and laundry equipment associated with and present at the Property,
including, but not limited to those items of personal property more particularly set forth on Exhibit I attached
hereto (the “Personalty”), (v) any and all trademarks, trade names, brand names, Licenses, intellectual property,
guaranties, warranties, development rights, permits, drawings, plans and business licenses (including, without limitation, healthcare
operating licenses) affecting each Individual Property (to the extent assignable) (collectively, the “Intangibles”),
(vi) all rights of Seller in, to and under all contracts, leases, agreements, commitments and other arrangements, and any amendments,
modifications, supplements, renewals and extensions thereof, used or useful in the operation of the Property made or entered into
by Seller as of the Effective Date, or between the Effective Date and the Closing in compliance with this Agreement (the “Property
Agreements”). (Notwithstanding the foregoing, Property Agreements expressly exclude: Seller’s management agreement
with Existing Manager, the Management Agreement, the City Agreement, the PILOT Agreement, the Residency Agreements, any contracts,
leases, agreements, commitments and other arrangements, and any amendments, modifications, supplements, renewals and extensions
entered into by Seller after the Effective Date and prior to the Closing in breach of Section 7(a), and any Property Agreements
for which consents to the assignment thereof to the Purchaser have not been obtained as of the Closing, unless waived by Purchaser.),
(vii) all rights of Seller in, to and under all Residency Agreements including any amendments, modifications, supplements, renewals
and extensions thereof, and all deposits, initial service fees and advances of any kind or nature from any resident of the Property
(“Resident Deposits”), (viii) true and complete copies of all the books, records, accounts, files, logs, ledgers,
journals and architectural, mechanical and electrical plans and specifications pertaining to or used in the operation of the Property
in Seller’s possession or control, however such data is stored, (ix) rights in and to any claims or causes of action (to
the extent assignable) to the extent they are in the nature of enforcing a guaranty, warranty, or a contract obligation to complete
improvements, make repairs, or deliver services to the Property, (x) the Tax Sale Certificates, including any and all rights related
to the Tax Foreclosure Actions (as such terms are defined in Section 25) and the results therefrom, and (xi) all rights
of Seller in and to the City Agreement and PILOT Agreement (subject to the consent of the City to the assignment of the PILOT Agreement)
(as those terms are more particularly defined in Section 26).

 

(b)          The
Property relating to each Facility shall not include, and Seller shall not sell, transfer or convey to Purchaser the following:

 

(i)          Accounts
receivable relating to such Facility for periods prior to Closing;

 

    	12

    	 

    

 

(ii)         Those
books and records relating to Seller which Seller is required by Applicable Law to retain; provided, however, that Purchaser may
retain copies of such books and records;

 

(iii)        The
computer software and systems set forth on Schedule 1;

 

(iv)        All
Medicaid provider agreements in respect of such Facility;

 

(v)         All
cash on hand at such Facility (subject to prorations of Section 11 below), cash equivalents, bank accounts and similar
type investments, such as certificates of deposit, treasury bills and other marketable securities wherever and however held;

 

(vi)        All
proprietary materials and documents of Seller or Existing Manager, provided that Seller shall transfer to Purchaser (to the extent
in the Seller’s possession or control) copies of operations handbooks, marketing materials (other than marketing materials
bearing Existing Manager’s logo or other intellectual property) and manuals for all equipment, systems and personal property
acquired by Purchaser;

 

(vii)       The
personal property of the Existing Manager set forth on Schedule 5; and

 

(viii)      All
websites, URLs and domain names of the Existing Manager.

 

Notwithstanding
the foregoing, Seller shall cooperate with Purchaser, and cause the Existing Manager to cooperate with Purchaser, in order to affect
the orderly transfer of operation of the Facilities (including, without limitation, transfer of electronic files and account information).

 

(c)          Assumption
of Liabilities. Except as expressly set forth in this Agreement, Purchaser is assuming no liabilities attributable to the operation
or ownership of the Property which accrued or occurred on or prior to the Closing. Specifically, without limiting the foregoing,
except as specifically set forth herein, Purchaser shall not assume (i) any claim, action, suit, or proceeding pending as of the
Closing or any subsequent claim, action, suit, or proceeding arising out of or relating to any event occurring prior to Closing,
with respect to the manner in which Seller conducted its businesses on or prior to the Closing (ii) any liability for taxes other
than real property taxes (and any payments under the PILOT Agreement) from and after Closing, or (iii) any liability under any
Property Agreements, except for the Assumed Obligations listed below. Purchaser acknowledges that, effective as of the Closing,
Purchaser shall assume and undertake to pay, discharge, and perform only the liabilities and obligations of Seller under the Property
Agreements listed in Schedule 2 (but not the Property Agreements which are entered into after the Effective Date hereof
not in compliance with this Agreement or Property Agreements for which consents to the assignment thereof to the Purchaser hereunder
have not been obtained as of the Closing), the City Agreement, the PILOT Agreement, the Residency Agreements, and the Tax Foreclosure
Actions (subject to and in accordance with Section 25) to the extent such liabilities and obligations arise during and relate
to any period from and after the Closing (collectively, the “Assumed Obligations”).

 

    	13

    	 

    

 

4.                           Due
Diligence.

 

(a)          Within
five (5) days after the execution of this Agreement, Purchaser shall order commitments for owner’s policies of title insurance
(the “Title Commitment”) issued by Acres Land Title Agency, Inc., Agent for Chicago Title Insurance Company
(the “Title Company”) covering fee simple title to the Real Property, in which the Title Company shall agree
to insure, in such amount as Purchaser deems adequate, merchantable title to such interests free from the Schedule B standard printed
exceptions and all other exceptions except for (i) exceptions which, under applicable state rules and regulations, cannot be deleted
or modified, and (ii) exceptions to which Purchaser does not object pursuant to Section 4(b) below (collectively, “Permitted
Exceptions”), with such endorsements as Purchaser shall reasonably require and with insurance coverage over any “gap”
period. Such Title Commitments shall have attached thereto complete, legible copies of all instruments noted as exceptions therein.
Purchaser shall furnish Seller with a copy of the title commitment and attachments, and all subsequent revisions thereof, promptly
upon receipt of same, but in no event later than five (5) days before the Due Diligence Deadline.

 

(b)          If
(i) any of the Title Commitments reflect any exceptions to title other than Permitted Exceptions which are not acceptable
to Purchaser in Purchaser’s sole discretion, or (ii) the Survey to be obtained by Purchaser pursuant to Section 4(d)
below discloses anything not acceptable to Purchaser in Purchaser’s sole discretion (any such exception or unacceptable statement
of fact being referred to herein as a “Title Defect”), then Purchaser shall, on or before the earlier of five
(5) days before the end of the Due Diligence Period give Seller written notice of such Title Defect (the “Title Notice”).
Such Title Notice shall include a copy of the relevant Title Commitment and copies of the exceptions. Any exception to title that
is (x) disclosed in the Title Commitment, or (y) identified on a Survey, which, in either case, is not identified as
a Title Defect in the Title Notice, shall be deemed to be a “Permitted Exception” for purposes of this Agreement.
Seller shall, within ten (10) days after receipt of any such Title Notice, notify Purchaser whether Seller will take the action
necessary to remove the Title Defects (the Title Defects that Seller agrees to remove are hereinafter referred to as the “Agreed
Upon Title Defects”); it being understood that Seller shall have no obligation to agree to remove any Title Defects other
than Required Cure Items. If Seller gives notice that it will not cure one or more Title Defects, or if Seller does not respond
to the Title Notice during said ten (10) day period (in which case Seller shall be deemed to have refused to cure any Title Defects),
Purchaser shall have the right, in its sole discretion, to terminate this Agreement within five (5) days after the earlier of (y)
the date Purchaser receives Seller’s notice, or (z) the expiration of said ten (10) day period, in which case this Agreement
shall terminate and the Deposit shall be returned to Purchaser and neither party shall have any further obligations to the other
party hereunder, except as otherwise provided herein. Notwithstanding anything contained herein to the contrary, the following
items (the “Required Cure Items”) must be cured prior to or at Closing (with Seller having the right to apply
the portion of the Purchase Price allocated to either such party pursuant to Section 2 hereof, or a portion thereof, for
such purpose): (x) all mortgages, security deeds, and other security instruments created by Seller, (y) all mechanics’, materialmen’s,
repairmen’s, contractors’ or other similar liens which encumber the Real Property as of the Effective Date created
by, through or under Seller or which may be filed against the Real Property after the Effective Date created by, through or under
Seller, and (z) all judgments against the Seller in a liquidated monetary amount which may constitute a lien against the Real Property.
On or before the Closing, Seller shall provide Purchaser with reasonable evidence of removal of the Agreed Upon Title Defects (with
Seller having the right to apply the portion of the Purchase Price allocated to an Individual Property pursuant to Section 2
hereof, or a portion thereof, for such purpose). Following the Due Diligence Deadline, Purchaser shall notify Seller within five
(5) days of receipt of an updated Title Commitment or Survey showing any Title Defects that are not Permitted Exceptions, and Seller
shall have the same opportunity to respond and Purchaser the same remedies as set forth in this Section 4(b). Any Title
Defects that are not Permitted Exceptions that are not timely objected to in the manner set forth in this Section 4(b) shall
be deemed Permitted Exceptions.

 

    	14

    	 

    

 

(c)          In
the event (x) the Agreed Upon Title Defects specified are not cured on or before the Closing, or (y) a Required Cure Item is not
cured on or before the Closing, Purchaser shall have the option to:

 

		(i)	accept Seller’s interest in the Land subject to such Title Defect(s) or Required Cure Item(s),
in which event such Title Defect(s) or Required Cure Item(s) shall become part of the Permitted Exceptions, and to close the transaction
contemplated hereby in accordance with the terms of this Agreement;

 

		(ii)	pay up to an aggregate of Five Hundred Thousand Dollars ($500,000.00) to cure the Agreed Upon Title
Defect or Required Cure Items and deduct such amount from the Purchase Price; or

 

		(iii)	by giving Seller written notice of Purchaser’s election, terminate this Agreement and receive
a refund of the Deposit, Seller shall reimburse Purchaser for its actual out-of-pocket costs in negotiating and performing due
diligence under this Agreement, not to exceed $200,000 in the aggregate, and upon the making of such refund and reimbursement,
no party shall have any further rights or obligations to the other hereunder, except for such rights and obligations that, by the
express terms hereof, survive any termination of this Agreement. If Purchaser elects to proceed with the Closing without giving
notice of its election of this option (iii), it will be deemed to have accepted such Title Defect(s) or Required Cure Item(s) as
Permitted Exceptions.

 

Notwithstanding
anything to the contrary contained in this Section 4(c), if on the Closing Date the Real Property is affected by any Required Cure
Item or Agreed Upon Title Defect then in such event, Seller, at Seller’s election shall have the privilege to (i) remove
or satisfy the same, and shall, for that purpose, be entitled to one or more adjournments of the Closing for a period not to exceed
thirty (30) days beyond the date scheduled for Closing, or (ii) if the Required Cure Item or Agreed Upon Title Defect is of a liquidated
monetary amount, Seller may, at Seller’s election, post a bond, letter of credit or escrow reasonably acceptable to the Title
Company to cause the Title Company to omit the applicable Required Cure Item or Agreed Upon Title Defect from the Purchaser’s
title insurance policy to be issued at the Closing, and Seller shall use commercially reasonable efforts after the Closing to contest
the applicable Required Cure Item or Agreed Upon Title Defect and to cause the applicable Required Cure Item or Agreed Upon Title
Defect to be discharged of record.

 

(d)          Seller
will provide Purchaser with copies of any existing boundary surveys for the Real Property. Purchaser may order one or more boundary
surveys for the Real Property (the “Survey”) prepared by a registered land surveyor or surveyors satisfactory
to Purchaser.

 

    	15

    	 

    

 

(e)          All
Title Expenses shall be paid by the Purchaser. “Title Expenses” shall include all costs and expenses of obtaining
the Survey, Title Commitment and title policies, together with any endorsements required by any lender financing the Purchaser’s
acquisition of the Property. “Title Expenses” shall exclude any costs and expenses incurred or required to be
incurred to cure any Title Defects or Required Cure Items.

 

(f)          Tests
and Inspections.

 

(i)          From
the Effective Date and continuing until the Closing, Purchaser and/or its designees, shall have the right to enter, upon reasonable
prior notice to Seller (not less than two (2) Business Days) and during normal business hours, each Individual Property, while
this Agreement remains in full force and effect, for the purpose of conducting such inspections, measurements, surveys, studies,
investigations, analyses and other tests, relating to all aspects of the Property, including, without limitation, a close review
and analysis of the Diligence Materials, as Purchaser deems appropriate (collectively, the “Tests”). In addition,
Purchaser may investigate all other aspects of the Property.

 

(ii)         Purchaser’s
access to each Individual Property shall be subject to the following: (A) Seller shall have the option to have an agent or employee
accompany Purchaser at all times during its investigation or inspection of the Property; (B) Purchaser may only communicate with
the employees of Seller or the Existing Manager after obtaining the prior written consent of Seller in each instance (not to be
unreasonably withheld, conditioned or delayed) and then only in the presence of an agent or representative of Seller; (C) Purchaser
shall conduct the Tests in a manner that does not unreasonably interfere with the operations of the respective Facility and Purchaser
shall coordinate all visits to the Facilities in order to minimize the number of visits required; (D) Purchaser shall not conduct
any invasive testing without the prior written consent of Seller; (E) Purchaser shall indemnify and hold harmless Seller from and
against all costs, claims, damages or liabilities incurred by Seller in connection with or by reason of any damage, death, or injury
to any person or property occurring in connection with the Tests (other than any liability incurred in connection with or by reason
of Purchaser’s discovery of any existing condition, including, without limitation, any Hazardous Materials); (F) Purchaser’s
delivering to Seller evidence of commercial general liability insurance in the amount of $1,000,000.00, in form and substance reasonably
acceptable to the Seller, and naming Seller as an additional insured thereunder; and (G) a Licensed Site Remediation Professional
(“LSRP”), as defined in the Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq., and
the regulations promulgated thereunder, shall not be utilized at any time in connection with Purchaser's inspections or Tests,
or be permitted access to either Individual Property or to the results of the inspections or Tests. Without limiting the generality
of the foregoing indemnity, Purchaser shall (i) remove any mechanics’ or other lien which may be recorded against the Property
(or any part thereof) by any party providing labor, materials or services at the request of Purchaser and (ii) not file or cause
to be filed any application or make any request (other than inquiries of the public records) with any governmental or quasi-governmental
agency (other than Fannie Mae or Freddie Mac) prior to Closing which would or could lead to an investigation or hearing before
any governmental or quasi-governmental agency or which would or could lead to a violation of Applicable Law or any change in zoning,
parcelization, Licenses, permits or other entitlements or any investigation or restriction on the use of the Property, or any part
thereof; provided, however, that Purchaser, within ten (10) Business Days following the Effective Date, shall submit applications
for the Required Governmental Approvals. The foregoing indemnity shall survive the expiration or any earlier termination of this
Agreement. Notwithstanding anything herein to the contrary, (1) Purchaser may contact governmental authorities in regard to land
use and licensing matters, but only to extent required for due diligence, licensing of the new operators for the Facilities, and
operation of the Facilities, and (2) Purchaser shall not contact any officials of the City without giving Seller a minimum of two
(2) Business Days advance notice and an opportunity to participate, and (3) Purchaser shall not contact International Senior Properties
or any of its principals, employees or Affiliates without giving Seller a minimum of two (2) Business Days advance notice and an
opportunity for Seller to participate.

 

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(iii)        Purchaser
shall have the right to cancel this Agreement in its sole and absolute discretion, for any reason (including any title or Survey
concerns) or no reason on or before the Due Diligence Deadline by written notice given to Seller on or before Due Diligence Deadline.
If Purchaser duly cancels this Agreement in accordance with this Section 4(f)(iii), this Agreement shall be deemed terminated
and of no further force or effect, except for the provisions expressly stated to survive termination, and the Deposit shall be
returned to Purchaser. If Purchaser does not duly cancel this Agreement by the Due Diligence Deadline in accordance with this subparagraph
or if Purchaser expressly waives its right to cancel this Agreement pursuant to written notice thereof given to Seller, (i) this
Agreement shall remain in full force and effect and Purchaser shall have no further right to cancel this Agreement under this Section
and (ii) Purchaser shall be deemed to have waived any liability of Seller and any right to refuse to consummate the Closing
by reason of any condition known to Purchaser as of the Due Diligence Deadline, including, without limitation, a misrepresentation
known to Purchaser, Required Cure Items (other than those which Seller has agreed or is otherwise obligated to cure) or any other
condition, except as otherwise expressly provided herein and except for Seller’s default.

 

(iv)        
All information obtained by Purchaser or its representatives relating to the Property or the transactions contemplated hereby shall
be treated as confidential information. Purchaser shall not disclose any information obtained by Purchaser, including, without
limitation, the results of environmental inspections or analysis, to any party (including Seller) without obtaining Seller’s
prior written consent, except that Purchaser may disclose such information to its consultants, attorneys and prospective lenders
engaged in the review of same. Notwithstanding the foregoing, Purchaser shall have the right to disclose confidential information
to third parties if such disclosure is required by an order of a court of competent jurisdiction, provided that Purchaser delivers
reasonable advance notice thereof to Seller. Notwithstanding anything herein to the contrary, to the extent the transaction contemplated
by this Agreement proceeds through Closing, this provision shall no longer be applicable. 

 

(g)          Management
Agreement. This Agreement is contingent upon and subject to an Affiliate of Purchaser and an Affiliate of Capital Health Group
Management, LLC (“Addit”) entering into and delivering to the Escrow Agent an executed Management Agreement
in substantially the form and substance annexed hereto as Exhibit G (“Management Agreement”) on or before
July 12, 2013. If Purchaser and Addit have not executed and delivered the Management Agreement to Escrow Agent as provided in the
preceding sentence, each of Seller and Purchaser shall have the right to cancel this Agreement on or before July 12, 2013 by written
notice given to the other on or before July 12, 2013. If either party duly cancels this Agreement in accordance with this Section
4(g), this Agreement shall be deemed terminated and of no further force and effect, except for the provisions expressly stated
to survive termination, and the Deposit shall be returned to Purchaser. If Purchaser or Seller does not timely cancel this Agreement
in accordance with this Section 4(g) or if Purchaser and Addit execute and deliver the Management Agreement to the Escrow
Agent on or prior to July 12, 2013, (i) this Agreement shall remain in full force and effect and Purchaser and Seller shall have
no further right to cancel this Agreement under this Section 4(g), and (ii) Purchaser and Seller shall be deemed to have
waived any right to refuse to consummate the Closing arising out of or in connection with the Management Agreement.

 

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5.                          Conditions
to Closing.

 

(a)          Seller
shall not be obligated to proceed with Closing unless and until each of the following conditions have been fulfilled:

 

(i)          Seller’s
satisfaction that there is no material pending or threatened litigation regarding the Transactions.

 

(ii)         Seller
shall have received payment of the Purchase Price in accordance with Section 2 of this Agreement, subject to the adjustments
and prorations contemplated by this Agreement.

 

(iii)        The
continuing validity (in all material respects) of all of the representations and warranties of Purchaser set forth in Section
8.

 

(iv)        Purchaser
shall have delivered or caused to be delivered to Seller on the Closing each of the Documents required to be delivered pursuant
to Section 10.

 

(b)          Purchaser
obligation to close pursuant to the terms of this Agreement is subject to the satisfaction, on or prior to the Closing, of each
of the following conditions, unless waived by Purchaser in writing:

 

(i)          The
Title Company shall have delivered to Purchaser Title Commitments to issue at the prevailing promulgated rates, ALTA standard owner’s
policies and extended lender’s policies of title insurance insuring fee title and any lender’s mortgage interest, as
the case may be, for each Individual Property (collectively, the “Title Insurance Policies” and each individually
a “Title Insurance Policy”) in the amount of the Purchase Price (or the loan amount for lender policies) for
each Individual Property, as set forth on Exhibit B, subject only to the Permitted Exceptions.

 

(ii)         All
Property Agreements not assumed by Purchaser (other than those automobile leases and equipment leases which Purchaser elects to
assume or is deemed to have elected to assume pursuant to the provisions of this Agreement) and management agreements affecting
the Property shall be terminated effective as of the Closing Date (Seller hereby covenanting to so terminate all such agreements,
or otherwise make provision reasonably acceptable to Purchaser to perform, effective as of the Closing Date).

 

(iii)        Except
for any changes permitted by the terms of this Agreement, including without limitation, Section 6 hereof, or consented to
in writing by Purchaser, each of the representations and warranties made by Seller in this Agreement or in any certificate delivered
at Closing that is qualified as to knowledge or materiality shall be true and correct in all respects when made and shall be true
and correct in all respects at and as of the Closing as though such representations and warranties were made or given on and as
of the Closing, and each of such representations and warranties that is not qualified as to knowledge or materiality shall be true
and correct when made and shall be true and correct in all material respects at and as of the Closing as though such representations
and warranties were made or given on and as of the Closing. For purposes of determining whether the representations and warranties
made by the Seller pursuant to this Agreement are true and correct at and as of the Closing, the Schedules and Exhibits shall be
deemed to include only that information contained therein on the date such Schedules and Exhibits are acknowledged pursuant to
Section 29.

 

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(iv)        Seller
shall have obtained any approvals and given any notice required of Seller by the New Jersey Department of Health to consummate
the transactions contemplated herein, which Seller covenants to diligently pursue.

 

(v)         Purchaser,
at its sole cost and expense, shall within ten (10) Business Days after the Effective Date, file for the Required Governmental
Approvals and shall diligently prosecute such Required Governmental Approval applications (Seller hereby agreeing to cooperate
with Purchaser, to obtain the Required Governmental Approvals) and will copy Seller on such filings and all related correspondence.
If the Required Governmental Approvals have not been obtained by the date then-scheduled for Closing, then to the extent allowed
under the laws of New Jersey, Seller and Purchaser shall enter into the Interim Licensure Arrangements with respect to the Three
Facility in the form attached hereto as Exhibit H. The term of the Interim Licensure Arrangements shall not exceed
eighteen (18) months after the Closing; provided, however, that Purchaser shall have the right to extend the term of said arrangements
for up to six (6) additional periods of one (1) month each, by written notice to Seller given prior to the expiration of the then-current
term, provided that Purchaser is diligently pursuing the Required Governmental Approvals. Purchaser shall pay all costs incurred
by Seller to maintain any Required Governmental Approvals required to operate the Facilities during the term of said Interim Licensure
Arrangements. Purchaser shall be entitled to receive all revenues and shall be obligated to pay all operating costs during such
period. Purchaser shall indemnify, defend and hold Seller (and its Affiliates) harmless from any claims, demands, costs, damages,
losses or causes of action that may arise in relation to Purchaser’s (or its designees) operation of the Facilities during
such temporary period, and Purchaser’s indemnification obligation shall be guaranteed by an Affiliate of Purchaser acceptable
to Seller in its sole discretion.

 

(vi)        Seller
shall have obtained the consent to the assignment of the PILOT Agreement from the City to Purchaser with respect to (i) the Three
Land and Four Land, and (ii) only in the event WMA has taken fee ownership of the Adjacent Land, the Adjacent Land.

 

(vii)       Seller
shall have delivered or caused to be delivered to Purchaser on the Closing each of the Documents required to be delivered pursuant
to Section 10.

 

(viii)      Purchaser
shall have received evidence from Seller, satisfactory to Purchaser in its reasonable discretion, that the management agreement
between Seller and Existing Manager has been terminated without fee or cost to Purchaser.

 

(ix)         Seller
shall have caused Capital Health Group, LLC (the “Guarantor”)
to execute and deliver the guaranty in the form attached as Exhibit D to this Agreement (the “Guaranty”).

 

(x)          Seller
shall have performed in all material respects all of their covenants, agreements and obligations required by this Agreement to
be performed or complied with by them prior to or upon the Closing.

 

(xi)         No
Material Change in Occupancy shall have occurred.

 

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6.                          Certain
Representations and Warranties by Seller. Each Seller, for itself and its Individual Property, hereby represents and warrants
to Purchaser that:

 

(a)          Each
Seller is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware,
authorized to conduct business in the State of New Jersey, with all requisite limited liability company power and authority to
carry on its business in the manner and in the location in which such business has been and is now being conducted, to execute
and deliver this Agreement, and to perform its obligations hereunder.

 

(b)          This
Agreement has been duly authorized, executed and delivered by each Seller and is the legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms.

 

(c)          All
of the documents to be delivered by Seller at Closing will, at Closing, be duly authorized, executed and delivered by Seller (and/or,
if applicable, its Affiliates), will be the legal, valid and binding obligations of Seller (and/or, if applicable, its Affiliates),
and be enforceable against Seller (and/or, if applicable, its Affiliates) in accordance with their respective terms (except as
may be limited by bankruptcy, insolvency, or other similar laws affecting the rights of creditors generally or the general principles
of equity), and the execution and delivery thereof and the performance by Seller of the terms thereof will not violate any material
provision of any agreement, instrument, writ, order or decree to which Seller (and/or, if applicable, its Affiliates) is a party,
or to which any portion of the Property is subject.

 

(d)          Except
for (i) a certificate of continuing occupancy, (ii) any notice to or consent or approval required by any governmental agency regulating
the issuance of Required Governmental Approvals to operate senior housing facilities, (iii) notice to the New Jersey Division of
Taxation Bulk Sale Section, and (iv) the consent of the City to the assignment of the PILOT Agreement, Seller is not required to
give any notice to, make any filing with, or obtain any authorization, consent or approval of any governmental agency in order
for the parties to consummate the Transactions contemplated by this Agreement.

 

(e)          Attached
hereto as Exhibit I is a list of all vehicles owned or leased (and equipment that is leased) by Seller in connection
with the operation of the Facilities. Except as set forth on Exhibit I, Seller owns and has good title to all Personalty,
free and clear of any liens and encumbrances, except for the Permitted Exceptions and liens that will be satisfied at Closing.
Such Personalty represents all material assets used in the operation of the Facilities, other than the personal and intellectual
property excluded by Section 3(b) above.

 

(f)          Seller
has not received any written notice of any condemnation proceeding or other proceeding in the nature of eminent domain in connection
with the Real Property or any portion or portions thereof or any utilities, sewers, roadways or other public improvements serving
the Real Property.

 

(g)          Schedule
7 attached hereto is a true and complete list of all Licenses held by the Seller in connection with the Facilities. To Seller’s
Knowledge, the Licenses listed on Schedule 7 are valid and no material violations exist with respect to such Licenses. No
applications, complaints or proceedings are pending or, to the Knowledge of Seller, threatened in writing which may (i) result
in the revocation, modification, non-renewal or suspension of any License or of the denial of any pending applications, (ii) the
issuance of any cease and desist order, or (iii) the imposition of any fines, forfeitures, or other administrative actions with
respect to the Facilities or their operation.

 

    	20

    	 

    

 

(h)          Other
than usual and customary annual assessments, and except for the PILOT Agreement, Seller has no Knowledge of, nor has Seller received
any written notice of, any proposed assessment for public improvements or otherwise in connection with the Property or any portion
thereof.

 

(i)          Except
for (i) the foreclosure of the Tax Sale Certificates by WMA or (ii) the matters set forth on Schedule 8, there is no suit,
action or proceeding pending or to Seller’s Knowledge threatened against Seller or any portion of the Property before or
by any court, administrative agency or other governmental or quasi-governmental authority, which brings into question the validity
of this Agreement or the Transactions or otherwise materially affects the Property.

 

(j)          The
Property Agreements listed on Schedule 2 hereto are in full force and effect and are all of the Property Agreements relating
to or affecting the Property. Seller is not in material default of any of its obligations under any of the Property Agreements,
and Seller has no Knowledge of any default on the part of any other party thereto.

 

(k)          Set
forth on Exhibit J hereto is a true and complete rent roll for each Facility (the “Rent Roll”).
Except for the Operating Leases and as set forth on the Rent Roll, to Seller’s Knowledge:

 

(i)          Other
than the residents under the Residency Agreements and Commercial Leases, no party has any right to possess all or any portion of
the Real Property.

 

(ii)         Seller
has delivered, true, correct and complete copies of the Residency Agreements and Commercial Leases, including any and all amendments
and guarantees.

 

(iii)        All
information set forth in the Rent Roll is true and correct in all material respects as of its date.

 

(iv)        Seller
has not assigned or pledged any Residency Agreement or Commercial Lease, or rents or any interest therein, to any person or entity
other than the lenders in connection with existing mortgage loans encumbering the Real Property which will be discharged at Closing
in accordance with the terms of this Agreement.

 

(v)         Seller
is not in default under any of its material obligations under any Residency Agreement or any Commercial Lease, and, except as set
forth on the Rent Roll, Seller has no Knowledge of any material default on the part of any other party thereto. All of the Residency
Agreements identified on the Rent Roll are currently in full force and effect as of the date of the Rent Roll.

 

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

 

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

 

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

 

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

 

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

 

(n)          Employee
Matters.

 

(i)          All
persons employed at the Real Property in connection with the operation or maintenance of the Property are employees of Three Operating
or Four Operating, except for the Existing Manager and other third party service providers. There are no employment contracts,
operating agreements, management contracts, listing agreements, consulting agreements, union contracts, labor agreements, pension
plans, profit sharing plans or employee benefit plans which relate to the Facility (“Employee Contracts”) except
as set forth in the Schedule of Employee Contracts on Exhibit K attached hereto. Except as set forth on the
Schedule of Employee Contracts, none of the employees engaged in the operation or maintenance of the Facility is employed pursuant
to a written agreement.

 

(ii)         Purchaser
shall have no liability for any matter concerning any individual employed by Seller or Existing Manager in the operation or management
of any Facility which accrues prior to Closing except for accrued vacation and other accrued paid time off and benefits (“Accrued
Employee Benefits”) related to any employee hired by Purchaser or the Facilities’ property manager at Closing with
respect to which Purchaser receives a fully offsetting credit against the Purchase Price in accordance with the provisions hereof.
Seller shall be solely liable to pay (or cause Existing Manager to pay) the employees all severance and Accrued Employee Benefits
to which the employees are entitled through the Closing Date, except for any Accrued Employee Benefits for which Purchaser receives
a fully offsetting credit against the Purchase Price at Closing as aforesaid, in which case Purchaser will provide the Accrued
Employee Benefits to such employees. For the purposes hereof, the term “Accrued Employee Benefits” shall be deemed
to include, without limitation, any bonus payable to any employee to the extent that such bonus is attributable to services rendered
by such employee prior to the Closing Date, but payable after the Closing Date.

 

    	22

    	 

    

 

(o)          Lack
of Conflict. Subject to any licensing requirements and approvals otherwise set forth in this Agreement, neither the execution
of this Agreement nor the consummation of the transactions contemplated herein will violate any restriction, court order, judgment,
law, regulation, charter, bylaw, instrument, or agreement to which Seller or the Property (or any portion thereof) are subject.

 

(p)          Non-Foreign
Seller. Seller is not a foreign seller as defined in the “Foreign Investment in Real Property Tax Act.”

 

(q)          ERISA;
Benefit Plans. Seller has not incurred and does not presently expect to incur any liability under Title IV of ERISA that would
reasonably be expected to result in liability to Purchaser. Each of the Benefit Plans that is a group health plan within the meaning
of Section 5000(b)(1) of the Internal Revenue Code (the “Code”) was in complete compliance with the provisions
of Section 4980B(f) of the Code.

 

(r)          InsuranceSchedule
6 sets forth an accurate summary of all general liability, fire, theft, professional liability and other insurance maintained
with respect to the Property, currently and for the last three (3) years.

 

(s)          Financial
Disclosures. The following documents have been provided or will be provided to Purchaser by Seller as part of the Diligence
Materials and to Seller’s Knowledge are substantially true, complete and correct in all material respects:

 

(i)          Detailed
operating statements for Seller’s period of ownership of the Facilities

 

(ii)         Current
List of Employees

 

(iii)        Current
Rent Roll

 

(iv)        Current
Accounts receivable.

 

(t)          Seller
is not now nor will it be at Closing in default or breach of any of its material obligations under the City Agreement, Pilot Assignment
or Pilot Agreement.

 

(u)          Medicaid.

 

(i)          Seller
is receiving payment under Title XIX of the Social Security Act and is certified for participation in the Medicaid program, (“Governmental
Payor Program”), and is a party to valid a participation agreement for payment by the Governmental Payor Program,
which agreement is in full force and effect. A true and correct copies of such agreement shall be delivered to Purchaser, to the
extent not prohibited by Applicable Law. Without limiting the generality of the foregoing, the facilities, equipment, staffing
and operations of Seller satisfy all material conditions of participation in the Governmental Payor Program.  Seller has not
received written notice of pending, threatened or possible investigation by, or loss of participation in, the Governmental Payor
Program, and, to Seller’s Knowledge, there is no basis for any such notice.

 

    	23

    	 

    

 

(ii)         There
are no pending or threatened material claims (including potential penalties) by the Governmental Payor Program against Seller,
and Seller has not been subject to loss of waiver of liability for utilization review denials with respect to the Governmental
Payor Program during the past two (2) years.

 

(iii)        All
billing practices of Seller with respect to Governmental Payor Programs and private insurance companies have been in material compliance
with Applicable Laws, and Seller has not billed or received any payment or reimbursement in excess of amounts allowed by Applicable
Laws.

 

(iv)        Seller
has not (i) offered or paid any remuneration, in cash or in kind, to, or made any financial arrangements with, any past, present
or potential customers, past or present suppliers, patients, medical staff members, contractors or third-party payors of Seller
in order to obtain business or payments from such persons other than in the ordinary course of business; (ii) given or agreed
to give, or is aware that there has been made or that there is any agreement to make, any gift or gratuitous payment of any kind,
nature or description (whether in money, property or services) to any customer or potential customer, supplier or potential supplier,
contractor, third party-payor or any other person other than in connection with promotional or entertainment activities in the
ordinary course of business; (iii) made or agreed to make, or is to its Knowledge aware that there has been made or that there
is any agreement to make, any contribution, payment or gift of funds or property to, or for the private use of, any governmental
official, employee or agent where either the contribution, payment or gift or the purpose of such contribution, payment or gift
is or was illegal under Applicable Laws; (iv) established or maintained any unrecorded fund or asset for any purpose or to
its Knowledge made any misleading, false or artificial entries on any of its books or records for any reason; or (v) to its
Knowledge made, or agreed to make, or is aware that there has been made or that there is any agreement to make, any payment to
any person with the intention or understanding that any part of such payment would be used for any purpose other than that described
in the documents supporting such payment.

 

(v)         Neither
Seller, nor to its Knowledge, any partner, member, director, or officer thereof, is a party to any contract, lease agreement or
other arrangement (including any joint venture or consulting agreement) with any physician, health care facility, hospital, nursing
facility, home health agency or other person who is in a position to make or influence referrals to or otherwise generate business
for Seller, or otherwise influence the affairs of the Seller, to provide services, lease space, lease equipment or engage in any
other venture or activity that is prohibited by law or that did not provide commercially reasonable terms with fair market value
consideration for the goods, property, services or use of money provided, exchanged or acquired thereunder at the time entered
into.

 

(v)         Intentionally
omitted.

 

(w)          Intentionally
omitted.

 

(x)          Title
Encumbrances. Seller is not in default under any of its material obligations under any recorded agreement, easement or instrument
encumbering title to the Real Property, and Seller has no Knowledge of any material default on the part of any other party thereto.

 

(y)          Intentionally
omitted.

 

(z)          Intentionally
omitted. 

 

    	24

    	 

    

 

(aa)         Intentionally
omitted. 

 

(bb)         Environmental
Matters. Seller has not generated, stored or disposed of any Hazardous Substance at or on the Real Property other than in accordance
with Environmental Laws. Except as set forth in the Environmental Reports, Seller has no Knowledge of any previous generation,
storage, disposal or existence of any Hazardous Substance at or on the Real Property other than in accordance with all Environmental
Laws. Except as set forth in the Environmental Reports, neither Seller, nor, to Seller’s Knowledge, Existing Manager, has
received any notice letter under any Environmental Law or any notice or claim, and there is no investigation pending or to Seller’s
Knowledge threatened, to the effect that Seller is or may be liable for or as a result of the release or threatened release of
hazardous substance into the environment or for the suspected unlawful presence of any hazardous waste on the Real Property.

 

(cc)         Neither
the Seller nor, to Seller’s Knowledge, the Existing Manager has received written notice of any violation of Applicable Laws
with respect to the Facilities.

 

Purchaser
acknowledges that Seller acquired the Facilities through foreclosure on February 1, 2011 and that the Diligence Materials may include
certain financial statements, reports, documents, investigations, etc. prepared by or on behalf of the prior owner of the Facilities
(“Prior Owner Diligence Materials”). Notwithstanding anything to the contrary contained in this Agreement, Seller
makes absolutely no representations or warranties of any kind, express or implied, with respect to any Prior Owner Diligence Materials,
including without limitation, with respect to the accuracy or completeness thereof.

 

All
representations and warranties made by Seller in this Section 6 shall be true and correct on the date made and their continued
validity in all material respects as of the Closing Date shall be a condition precedent to Purchaser’s obligation to close
the Transactions hereby contemplated.

 

If
before the Closing Purchaser acquires Purchaser Knowledge that any representation or warranty set forth in Section 6 is
untrue or incomplete or has become untrue or incomplete due to a change in facts or circumstances, then within five (5) days, Purchaser
shall give Seller written notice, specifying the manner in which such representation or warranty is untrue or incomplete. If before
the Closing Seller acquires Knowledge that any representation or warranty set forth in Section 6 has become untrue or incomplete
due to a change in facts or circumstances (or Seller acquiring Knowledge of facts or circumstances of which Seller did not previously
have Knowledge), then Seller shall promptly notify Purchaser of the representation or warranty which is untrue or incomplete. In
either case, Seller shall have the right to cure such condition before the Closing, and Seller shall give Purchaser written notice
within five (5) days after (i) receipt of Purchaser’s notice pursuant to the first sentence of this Section 6, or
(ii) the giving of Seller’s notice pursuant to the immediately preceding sentence, whether Seller will be able to cure such
condition prior to the Closing Date. If Seller is unable to cure any such condition prior to the Closing Date, then, provided the
condition is not the result of the willful conduct of Seller in violation of this Agreement, Purchaser's exclusive remedy shall
be to terminate this Agreement by notice to Seller and Escrow Agent given within ten (10) calendar days after Seller notifies Purchaser
that Seller will be unable to cure the same. In the event this Agreement is terminated pursuant to this Section 6, the Deposit
shall be refunded to Purchaser, whereupon, except as provided herein, this Agreement and all rights and obligations of the parties
hereunder shall be null and void; provided, however, if the condition is as a result of the willful conduct of Seller in violation
of this Agreement, Seller shall reimburse Purchaser for its actual out-of-pocket costs in negotiating and performing due diligence
under this Agreement, not to exceed $200,000 in the aggregate, and upon the making of such refund and reimbursement, this Agreement
shall be null and void. If Purchaser fails to terminate this Agreement within such ten (10) day period, Purchaser shall be deemed
to have waived any right to terminate under this Section 6, or any other recourse against Seller, and the applicable representation
and warranty made by Seller hereunder shall be deemed waived by Purchaser to the extent that it is untrue or incomplete.

 

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The
phrases “Knowledge” “to Seller’s Knowledge,” the “Knowledge of Seller and/or of its Affiliates,”
and similar terms used in this Agreement, shall mean in all cases the actual knowledge of the following individuals (or any one
of them): Jordan S. Socaransky and Kenneth R. Assiran (the “Knowledge Parties”), after reasonable
inquiry with the executive director of the Facilities. In no event shall Purchaser be entitled to assert any cause of action against
any of the Knowledge Parties with respect to this Agreement or any breach hereof, nor shall any of the Knowledge Parties have any
personal liability whatsoever for any matter under or related to this Agreement.

 

7.                           Covenants
of Seller.

 

(a)          Operation
of the Facility. Subject to the terms of this Agreement, Seller, during the term of this Agreement, shall carry on the business
and operations of each Facility in substantially the same manner as heretofore carried on by it. Prior to the Closing Date, Seller
shall maintain (or replace with policies of like amounts) all existing insurance policies set forth on Schedule 6 insuring
the Property and the operation of the Facility, and such policies shall be on an occurrence basis, where applicable. Seller shall
provide Purchaser with current loss runs within fifteen (15) days after the end of each month from the Effective Date until the
Closing. Prior to Closing Seller will promptly notify Purchaser of any potential losses or claims that may be covered by the insurance.
Except for the items listed in Section 3(b), Seller shall not remove any of the Personalty from the Facilities, unless Seller
replaces the same with like items that are of equal or better quality and condition. Seller shall maintain the inventory consistent
with Seller’s past practices and will replenish the same consistent with its past practices. Seller shall complete all capital
improvements and renovations to the facilities in a good and workmanlike manner. Seller may extend, amend, modify or terminate
any of the Property Agreements and Residency Agreements as Seller deems appropriate to operate, service and maintain the Property
consistent with normal business practices, and may enter into new Property Agreements; provided, however, (A) from the date
of this Agreement to the Closing Date, Seller shall provide to Purchaser copies of new Property Agreements and any terminations,
amendments, extensions, or modifications of existing Property Agreements, which Seller has entered into, or intends to enter into,
within two (2) business days thereof, (B) Seller shall not, without the written consent of Purchaser (which consent shall
not be unreasonably withheld, conditioned or delayed), enter into (i) any leases of furniture, fixtures or equipment for the
Facility, (ii) any new Property Agreement other than those that are consistent with past practices and that are terminable
with not more than thirty (30) days’ notice without penalty, or (iii) any extension, amendment, modification, or termination
of a Property Agreement other than an extension of an existing Property Agreement on substantially the same terms (provided that
Purchaser has not delivered to Seller Notice of its intent to not assume such Property Agreement) or consistent with past practices,
(C) no part of the Real Property, or any interest therein, will be sold or otherwise transferred or encumbered without Purchaser’s
prior written consent, which approval shall not be unreasonably withheld, conditioned or delayed, and (D) without the prior
written approval of Purchaser (which approval shall not be unreasonably withheld, conditioned or delayed), Seller shall not make
any material alterations to the Real Property, or remove or otherwise dispose of any material portion of the Personalty.

 

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(b)          Cooperation.
Seller shall cooperate with Purchaser in all commercially reasonable respects, including by (A) executing and/or delivering
necessary or desirable applications and other information and documents, to facilitate the issuance to Purchaser of all Required
Governmental Approvals, certificates and approvals for operation of the Facilities and other authorizations in connection with
the operation of the Property (“Purchaser Permits”) and (B) promptly notifying Purchaser of any communications
to or from any governmental agency with respect to matters that could reasonably be expected to have a material adverse affect
upon each Facility. In the event that any of the Purchaser Permits required to be obtained prior to the Closing Date are not obtained
at such time, but all other conditions set forth herein are satisfied (other than conditions which, by their nature, are to be
satisfied on the Closing Date), Seller agrees to cooperate in good faith with Purchaser and to use commercially reasonable efforts
in formulating and implementing mutually acceptable alternatives (including, but not limited to the Interim Licensure Arrangement)
that permit the consummation of the transactions contemplated by this Agreement in accordance with all legal requirements in the
absence of such Purchaser Permits, provided that any such arrangements are fully in compliance with all legal requirements, that
Purchaser either pays for or promptly reimburses Seller for all out-of-pocket expenses incurred by Seller in connection therewith,
and that Purchaser indemnifies and holds harmless Seller from and against any claims, damages, costs or liabilities arising in
connection therewith. If Purchaser is not able to obtain a license from the NJ Department of Health to operate the Three Facility
by the Closing Date, Seller and Purchaser shall enter into an Interim Licensure Arrangement in the form attached as Exhibit
H on or before the Closing Date.

 

(c)          Audit.
Seller at no material out of pocket cost to Seller, shall assist Purchaser in conducting and completing, no later than seventy-four
(74) days following the Closing Date, an audit of property-level financials for the Property 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 Purchaser. In connection therewith, Seller agrees to use commercially reasonable efforts to obtain
and provide to the auditors any and all data and financial information in the possession of Seller which are necessary or required
by the auditors in connection with their preparation and completion of the foregoing audit, which additional data and financial
information shall be true, correct and complete in all material respects to Seller’s knowledge. Additionally, Seller shall
provide Purchaser, but without expense to Seller, with (a) an audit letter in substantially the
form as Exhibit N attached hereto and made a part hereof, and (b) copies
of, or access to, such factual information as may be reasonably requested by Purchaser or its designated accountants, and in the
possession or control of Seller, to enable Purchaser to file any filings required by the SEC in connection with the purchase of
the Property. The rights and obligations of Seller and Purchaser under this Section 7(c) shall survive the Closing; provided,
however, that any representation and warranty shall be subject to the Survival Period, the Floor and the Cap.

 

(d)          Seller
shall give prompt written notice to Purchaser, and Purchaser shall give prompt written notice to Seller, of (i) the occurrence,
or failure to occur, of any event that would be likely to cause any of its respective representations or warranties contained in
this Agreement to be untrue or inaccurate in any material respect at any time from the Effective Date to the Closing, and (ii)
any failure to comply with or satisfy, in any material respect, any covenant, condition, or agreement to be complied with or satisfied
under this Agreement. If, prior to Closing, either Purchaser or Seller obtains Knowledge of any matter that causes the representations
or warranties of the other party contained in this Agreement to be untrue or inaccurate in any material respect, such party shall
promptly notify the other party thereof in writing.

 

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8.                         Certain
Representations and Warranties of Purchaser. Each Purchaser hereby represents and warrants to Seller as follows:

 

(a)          This
Agreement has been duly authorized, executed and delivered by each Purchaser and is the legal, valid and binding obligation of
each Purchaser, enforceable against each Purchaser in accordance with its terms.

 

(b)          The
execution and delivery of this Agreement by each Purchaser does not violate any provision of any governance document, agreement
or judicial order to which any Purchaser is a party or to which any Purchaser is subject.

 

(c)          All
the documents to be delivered by Purchaser at Closing will, at Closing, be duly authorized, executed and delivered by Purchaser
(and/or, if applicable, its Affiliates), will be the legal, valid and binding obligations of Purchaser (and/or, if applicable,
its Affiliates), and be enforceable against Purchaser (and/or, if applicable, its Affiliates) in accordance with their respective
terms, and the execution and delivery thereof will not violate any provision of any governance document, agreement or judicial
order to which Purchaser (and/or, if applicable, its Affiliates) is a party or, to the best of Purchaser’s Knowledge, to
which the Property is subject.

 

(d)          Purchaser
is not required to obtain the consent of any person or entity to the Transactions hereby contemplated.

 

(e)          The
Transactions contemplated under this Agreement do not meet the “size of transaction” test, 15 U.S.C. § 18a(a)(2)(B)(ii),
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), and the regulations
promulgated thereunder, and therefore the Transactions do not need to be notified to the Federal Trade Commission and the Antitrust
Division of the United States Department of Justice under the HSR Act.

 

All
representations and warranties made by Purchaser in this Section 8 shall be true and correct on the date made and their
continued validity as to any material fact as of the Closing Date shall be a condition precedent to Seller’s obligation to
close the Transactions hereby contemplated.

 

9.                          Closing.

 

(a)          Closing
Date. The closing of the sale of the Property (“Closing”) shall take place at 1:00 p.m. (New York time)
at the office of Escrow Agent or at another place mutually agreed upon by the parties, or by mail, on the later of (i) the first
Business Day occurring thirty (30) days after the Due Diligence Deadline, or (ii) the first Business Day occurring fifteen (15)
days after the consent of the City to the assignment of the PILOT Agreement is granted pursuant to Section 26 below (“Closing
Date”), or such earlier date as to which the parties have mutually agreed; provided, however, in no event shall the Closing
Date occur after October 31, 2013. For the purpose of allocating revenue and expense, the parties agree that 12:01 a.m. (New York
time) on the day of Closing shall be the cut-off time. The parties shall not attend the Closing in person and shall close the transaction
contemplated by this Agreement through escrow with Escrow Agent pursuant to written closing escrow instructions, which instructions
shall be reasonably satisfactory to Seller and Purchaser, and shall be consistent with the terms hereof.

 

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(b)          Post-Closing
Cooperation. Each party shall at any time and from time to time after the Closing execute, acknowledge where required, and
deliver such further instruments and documents and take such other action as may be reasonably requested by the other party in
order to carry out the purposes of this Agreement, in each event subject to the limitations on survival and liability set forth
in this Agreement.

 

10.                        Closing
Documents.

 

(a)          Seller
Closing Documents. At the Closing, Seller shall execute and deliver, or cause to be executed and delivered, to Purchaser the
following documents:

 

(i)          With
respect to each Individual Property comprising the Property, a separate deed in the form of Exhibit C in favor of
Purchaser, or at the written request of Purchaser, Purchaser’s Designee (such deeds, collectively, the “Deeds”);

 

(ii)         Affidavits,
indemnities, and other similar instruments as are reasonably required by the Title Company. All such affidavits, indemnities and
similar instruments shall be in form and substance reasonably satisfactory to the Title Company;

 

(iii)        A
certification of non-foreign status in the form of Exhibit E;

 

(iv)        All
documents necessary to transfer title to all vehicles and equipment owned by Seller, or to assign and assume vehicle and equipment
leases to the extent assumed by Purchaser;

 

(v)         A
certification of Seller in form reasonably satisfactory to Purchaser, containing an updated Rent Roll for the Property and certifying
that all of the representations and warranties of Seller contained in this Agreement remain true and correct as of the Closing
Date;

 

(vi)        A
document terminating the Operating Leases as of the Closing;

 

(vii)       A
Bill of Sale and General Assignment in the form of Exhibit M attached hereto for each Facility;

 

(viii)      An
assignment from Three Operating and Four Operating of the applicable Residency Agreements and Commercial Leases for each Facility
in the form of Exhibit L attached hereto;

 

(ix)         If
Purchaser is assuming any Property Agreements as set forth in Section 3(c) above, an Assignment of Property Agreements in
the form attached hereto as Exhibit F-1 executed by the applicable Seller;

 

(x)          Seller’s
Residency Certification (form GIT/REP-3);

 

(xi)         Affidavit
of Consideration for Use by Seller (form RTF-1); 

 

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(xii)        Interim
Licensure Arrangements, if applicable;

 

(xiii)       Any
other documentation reasonably required by the Title Company to consummate the Transactions contemplated by this Agreement;

 

(xiv)      A
statement showing all closing prorations (the “Closing Statement”);

 

(xv)       An
Assignment of the Tax Sale Certificates in the form of Exhibit F-2; or a Deed from WMA to Purchaser for the
Adjacent Land, as provided in Section 25.

 

(xvi)      An
assignment of the City Agreement in the form attached hereto as Exhibit F-3; and

 

(xvii)     An
assignment of the PILOT Agreement in the form attached hereto as Exhibit F-4.

 

(xviii)
A governmental certificate, dated as of a date as near as practicable to the Closing, showing that Seller (i) is in good standing
in the state of organization of Seller, and (ii) is qualified to do business in the state in which the Real Property is located.

 

(xix)       A
certificate of the secretary (or the equivalent thereto if none) of Seller attesting as to the incumbency of each manager, officer,
and authorized representative of Seller who executes this Agreement and any of the other Documents, certifying that resolutions
and consents necessary for Seller to act in accordance with the terms of this Agreement have been adopted or obtained (with copies
thereof attached) and to similar customary matters.

 

(xx)        Affidavit
of Title, in form reasonably acceptable to Title Company and Seller.

 

(xxi)       Release
or escrow letter from New Jersey Division of Taxation, Bulk Sale Section, and if required, a Bulk Sales Tax Escrow Agreement in
the form annexed hereto as Exhibit O.

 

(xxii)      The
Guaranty in the form attached hereto as Exhibit D.

 

(xxiii)     The
Income Support Agreement in the form attached hereto as Exhibit P.

 

(b)          Purchaser
Closing Documents. At the Closing, Purchaser shall execute and deliver, or cause to be executed and delivered, to Seller the
following documents:

 

(i)          An
assignment of the applicable Residency Agreements and Commercial Leases for each Facility in the form of Exhibit L
attached hereto;

 

(ii)         If
Purchaser is assuming any Property Agreements as set forth in Section 3(c) above, an Assignment of Property Agreements in
the form attached hereto as Exhibit F-1.

 

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(iii)        Duly
executed Affidavit of Consideration for Use by Purchaser (form RTF-1EE).

 

(iv)        Documentation
to establish to Seller’s reasonable satisfaction the due authorization of Purchaser’s execution of all documents contemplated
by this Agreement.

 

(v)         Interim
Licensure Arrangements, if applicable;

 

(vi)        Duly
executed counterpart of the Closing Statement.

 

(vii)       Any
other documentation reasonably required to consummate the transaction contemplated by this Agreement.

 

(viii)      An
Assignment of the Tax Sale Certificates in the form of Exhibit F-2, if required by Section 25.

 

(ix)         An
assignment of the City Agreement in the form attached hereto as Exhibit F-3.

 

(x)          An
assignment of the PILOT Agreement in the form attached hereto as Exhibit F-4.

 

(xi)         if
required, a Bulk Sales Tax Escrow Agreement in the form annexed hereto as Exhibit O.

 

(xii)        The
Income Support Agreement in the form attached hereto as Exhibit P.

 

(c)          Amounts
to be Paid at Closing. At the Closing, Purchaser shall pay to Seller, by federally insured wire transfer, the total amount
of the Purchase Price, subject to proration’s and adjustments, and any sales taxes in accordance with Section 12(b).

 

(d)          Further
Assurances. Seller and Purchaser shall, at the Closing, and from time to time thereafter, upon request, execute such additional
documents as are reasonably necessary in order to convey, assign and transfer the Property pursuant to this Agreement and otherwise
complete the Transactions contemplated by this Agreement, provided that such documents are consistent with the terms of this Agreement,
and do not increase Seller’s or Purchaser’s obligations hereunder or subject Seller or Purchaser to additional liability
not otherwise contemplated by this Agreement. Additionally, if this Agreement is terminated, either party may request from time
to time thereafter confirmation of such termination from the other party, upon which request, the non-requesting party shall promptly
confirm to the requesting party in writing (by a recordable instrument if requested by the requesting party) that this Agreement
has been terminated.

 

(e)          Employees.
Except as expressly set forth herein, Seller shall terminate all employees on the Closing Date. Addit may offer employment to substantially
all employees of Seller who, as of the Closing Date, are actively working at a Facility. Addit may also offer employment upon the
terms and conditions set forth herein, to all employees of Seller at the applicable Facility who, as of the Closing Date, are on
a leave of absence pursuant to the Seller’s Family and Medical Leave of Absence Policy or due to an injury or illness, when
and only when they return from such leave. All such employees electing to accept employment with Purchaser (or its manager) are
hereinafter referred to as the “Hired Employees”.

 

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11.                        Prorations
and Adjustments.

 

(a)          The
following items shall be prorated and adjusted between Seller and Purchaser as of 12:01 a.m. (New York time) on the day of the
Closing, except as otherwise specified:

 

(i)          all
income and revenue from the Facilities including, without limitation, all Resident Deposits, resident payments (uncollected rents
and other uncollected revenue shall not be adjusted at Closing and shall be subject to the provisions of Section 11(b) below);

 

(ii)         water,
electricity, gas, sewer, and other utility charges (excluding telephone) and deposits with utility companies to the extent such
deposits are assignable and are assigned to Purchaser;

 

(iii)        real
estate taxes and/or payments under the PILOT Agreement for the Real Property for the fiscal year in which Closing occurs based
on the most recently ascertainable taxes for the Land and/or the Improvements with a post-closing reconciliation of amounts owed
promptly after final tax amounts are determined;

 

(iv)        amounts
payable under the Property Agreements to be assumed by the Purchaser;

 

(v)         real
estate taxes and/or payments under the PILOT Agreement for the Adjacent Land for the fiscal year in which Closing occurs;

 

(vi)        Accrued
Employee Benefits; and

 

(vii)       any
other expenses normal to the operation and maintenance of the Property; all installments of special assessments payable after the
Closing, shall be paid exclusively by Purchaser.

 

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(b)          On
the date of the Closing, the amount of prorations and adjustments as aforesaid shall be determined or estimated to the extent practicable,
and monetary adjustment shall be made between Seller and Purchaser. If any prorations or adjustments are based on estimates as
of Closing, when the amount of such costs, expenses, charges or amounts upon which such prorations or adjustments are finally known,
Seller and Purchaser shall make a recalculation of the apportionment of the same, and Seller or Purchaser, as the case may be,
shall make an appropriate payment to the other based on such recalculation, provided such adjustment is claimed by such party within
one hundred eighty (180) days after the Closing Date. Subject to the prorations to be made pursuant to this Section 11(b),
if any resident sends payments to Seller after the Closing, Seller shall promptly deliver such payment to Purchaser. As soon as
reasonably practicable following the Closing Date, but not more than ten (10) days following the Closing Date, Seller shall provide
Purchaser a schedule of all unpaid accounts receivable relating to the period prior to the Closing Date. Seller shall have the
right to pursue such delinquent amounts following the Closing; provided that Seller shall not have the right to cause any eviction
or to terminate any Residency Agreement or Commercial Lease following the Closing on account of any delinquent amounts. Other than
invoicing such past due amounts in accordance with Purchaser’s customary practice, Purchaser shall have no obligation to
pursue any such delinquent amounts. To the extent such delinquent rents and other amounts are collected by Purchaser, Purchaser
may deduct from the amount owed to Seller an amount equal to the attorneys’ fees and other reasonable costs of collection
and out of pocket costs actually incurred by Purchaser in collecting such rents, as well as any other amounts due to Purchaser.
Subject to the foregoing sentence, any rent or other payment collected after the Closing from any resident which owed a payment
that was delinquent as of the Closing Date shall be applied first to Purchaser’s unpaid monetary obligations with respect
to any periods from and after the Closing Date through the end of the month in which such payment is made, in such order as Purchaser
may elect, until such monetary obligations have been paid in full; any remaining amount of such payment shall be paid over to Seller,
for application against Seller’s delinquent monetary obligations with respect to any periods before the Closing Date, in
such order as Seller may elect, until such delinquent monetary obligations have been paid in full, and any remaining amount of
such payment shall be retained by Purchaser for application against Purchaser’s future obligations. In addition, in calculating
the prorations pursuant to this Section 11(b), Seller shall receive a credit in the amount of any utility, municipality
or other deposits relating to the Real Property made by Seller and which are assigned to Purchaser at the Closing. Seller shall
be entitled to a refund from the utility or the municipality of any such deposits not assigned to Purchaser.

 

(c)          If
any refund of real property taxes or payments under the PILOT Agreement regarding any of the Real Property or the Adjacent Land
is made after the date of the Closing for a period prior to the Closing, after deducting Purchaser’s reasonable out-of-pocket
costs, if any, in obtaining such refund, the amount of such refund that is on account of the period prior to Closing shall be paid
to Seller or as Seller directs. The balance, if any, of such refund that is on account of the period following Closing shall be
paid to Purchaser.

 

(d)          At
Closing, Seller shall transfer the following sums or give Purchaser a credit against the Purchase Price in the amount of all (i)
Accrued Employee Benefits for any Hired Employees accruing prior to the Closing Date; (ii) security deposits (together with any
interest earned thereon or otherwise due to the residents under the terms of any residency agreement or Applicable Law); and (iii)
last months’ rents, and other prepaid rent or fees (together with any interest earned thereon or otherwise due to the residents
under the terms of any residency agreements or Applicable Law).

 

12.                         Closing
Costs.

 

(a)          Seller
shall be responsible for the payment of: (i) the fees and costs of Seller’s counsel and investment advisors representing
it in connection with the Transactions; (ii) one-half (1/2) of the escrow fees charged by Escrow Agent; (iii) the real estate transfer
fee (other than the “mansion tax”) payable in connection with the conveyance of the Property; and
(iv) all fees, costs and expenses in connection with the prepayment and discharge of the financing documents that encumber
the Property; and

 

(b)          Purchaser
shall be responsible for the payment of (i) the fees and costs of Purchaser’s counsel and investment advisors representing
it in connection with the Transactions; (ii) the
entire cost of the Title Insurance Policies; (iii) survey costs, environmental inspection costs and all due diligence
costs and expenses; (iv) all recording fees; (v) one-half of the escrow fees charged by Escrow Agent; (vi) any “mansion
tax” payable pursuant to N.J.S.A. 46:15-7.2 in connection with the conveyance of the Property; and (vii) all other
fees, costs and expenses incurred by Purchaser in connection with the Transactions, not specifically provided for herein.

 

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13.                         Remedies.

 

(a)          Purchaser
Default. If Purchaser should default under this Agreement, and such default continues for ten (10) days after written notice
thereof specifying such default, Seller may elect to cancel this Agreement by giving notice to Purchaser and Escrow Agent. The
parties hereto agree that the damages that Seller will sustain as a result of such default will be substantial but will be difficult
to ascertain. Accordingly, the parties agree that in the event that Seller shall elect to terminate this Agreement as a result
of such default, and Seller is not otherwise in default under this Agreement, Escrow Agent is hereby directed to pay the Deposit
to Seller, who shall retain the Deposit as and for its liquidated damages and sole remedy hereunder, in which event this Agreement
shall be null and void and of no further force or effect except for those provisions expressly stated to survive the termination
of this Agreement; provided, however, nothing herein shall limit the Seller’s rights under any indemnities set forth in this
Agreement.

 

(b)          Seller
Default. If Seller defaults on any of Seller’s obligations under this Agreement, and such default continues for ten (10)
days after written notice thereof specifying such default, Purchaser’s sole remedy for Seller’s default shall be to
elect either to: (i) cause the refund of the Deposit to Purchaser and reimburse Purchaser for its actual out-of-pocket costs
in negotiating and performing due diligence under this Agreement, not to exceed $200,000 in the aggregate, and upon the making
of such refund and reimbursement, this Agreement shall be null and void and of no further force or effect except for those provisions
expressly stated to survive the termination of this Agreement and the lien, if any, of Purchaser against the Property shall wholly
cease; or (ii) commence an action for specific performance. Purchaser hereby waives all other rights and remedies that it
might have, including but not limited to, the right to sue for damages.

 

(c)          Collection
Costs. If any legal action, arbitration or other similar proceeding is commenced to enforce or interpret any provision of this
Agreement, the prevailing party shall be entitled to an award of its attorneys’ fees and expenses. The phrase “prevailing
party” shall include a party who receives substantially the relief desired whether by dismissal, summary judgment, judgment
or otherwise. In the event that either party is entitled to an award of its attorneys’ fees and expenses pursuant to the
terms of this Section 13(c), such award shall be available notwithstanding the limitations on remedies set forth in Sections
13(a) and (b) above.

 

(d)          Survival.

 

(i)          Closing.
None of the terms and conditions of this Agreement shall survive the Closing, except for the following Sections: 4(f)(ii), 6
(subject to the Survival Period), 7(c), 9(b), 10, 11, 12, 13, 14, 15, 16, 17(g), 17(k), 18 (subject to the Survival Period), 19,
20, 23, 24, 25, 26, 27, 28, 29 and 30.

 

(ii)         Termination.
None of the terms and conditions of this Agreement shall survive the termination of this Agreement, except for the following Sections:
4(f)(ii) and (iv), 13, 14, and 16.

 

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14.                       Broker.
Seller and Purchaser represent to each other that neither party has dealt with any broker or real estate consultant in connection
with the Transactions contemplated by this Agreement. Notwithstanding the foregoing, Seller and Purchaser acknowledge that Seller
has engaged Stifel, Nicolaus & Company, Incorporated (“SN”)
as its investment advisor and the Seller shall pay the fees due to SN in accordance with a separate agreement between Seller and
SN. Seller and Purchaser shall indemnify and hold the other free and harmless from and against any liabilities, damages, costs
or expenses (including, but not limited to, reasonable attorneys' fees and disbursements) suffered by the indemnified party arising
from a misrepresentation or a breach of any covenant made by the indemnifying party pursuant to this Section 14. The provisions
of this Section 14 shall survive the Closing or termination of this Agreement.

 

15.                        Risk
of Loss.

 

(a)          Condemnation.

 

(i)          The
risk of any loss or damage to the Real Property by condemnation before the Closing shall continue to be borne by Seller. In the
event any condemnation proceeding is commenced or threatened, Seller shall promptly give Purchaser written notice thereof (in any
event within five (5) days after Seller first has Knowledge of the occurrence of same), together with such reasonable details with
respect thereto as to which Seller may have Knowledge. If, prior to Closing, there is a material taking by eminent domain at the
Real Property, this Agreement shall become null and void at Purchaser’s option, and upon receipt by Seller of the written
notice of an election by Purchaser to treat this Agreement as null and void, this Agreement shall be deemed null and void. If Purchaser
elects to proceed and to consummate the purchase despite said material taking, or if there is less than a material taking prior
to Closing, there shall be no reduction in or abatement of the Purchase Price and Purchaser shall be required to purchase the Property
in accordance with the terms of this Agreement, and Seller shall assign to Purchaser, without representation of warranty by or
recourse against Seller, all of Seller’s right, title and interest in and to any award made or to be made in the condemnation
proceeding (in which event Purchaser shall have the right to participate in the adjustment and settlement of any insurance claim
relating to said damage). For the purpose of this Section 15, the term “material” shall mean any taking
of in excess of five percent (5%) of the square footage of the buildings on the Real Property or ten percent (10%) of the Land
associated with the Real Property. The parties’ obligations, if any, under this Section 15(a) shall survive the expiration
or any termination of this Agreement.

 

(b)          Destruction
or Damage. The risk of any loss or damage to the Real Property by fire or other casualty before the Closing shall continue
to be borne by Seller. Seller shall promptly give Purchaser written notice of any fire or other casualty (in any event within ten
(10) days after Seller first has Knowledge of the occurrence of same), which notice shall include a description thereof in reasonable
detail and an estimate of the cost of time to repair. If (i) any portion of the Real Property is damaged by fire or casualty after
the Effective Date and is not repaired and restored substantially to its original condition prior to Closing, or (ii) at the time
of Closing the estimated cost of repairs as to the Real Property is THREE HUNDRED FIFTY THOUSAND U.S. DOLLARS ($350,000.00) or
less, as determined by an independent adjuster selected by Seller, Purchaser shall be required to purchase the Property in accordance
with this Agreement, and Purchaser shall receive from Seller at Closing (I) an assignment, without representation of warranty
by or recourse against Seller, of all insurance claims and proceeds with respect thereto, plus (II) an amount equal to Seller’s
insurance deductible. If the estimated cost of repairing such damage to the Real Property is more than THREE HUNDRED FIFTY THOUSAND
U.S. DOLLARS ($350,000.00), as determined by such independent adjuster, Purchaser may, at its sole option: (x) terminate this
Agreement by notice to Seller on or before the earlier of the Closing or the tenth (10th) day after receipt of such
notice described above, in which event no party shall have any further liability to the party under this Agreement; or (y) proceed
to Closing as provided in this Section 15(b). In no event shall the amount of insurance proceeds assigned to Purchaser under
this subparagraph (plus the amount of the deductible) exceed the lesser of (i) the cost of repair or (ii) the Purchase Price. The
parties’ obligations, if any, under this Section 15(b) shall survive the expiration or any termination of this Agreement.

 

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16.                        Limited
Warranties; Disclaimer.

 

(a)          Limited
Warranties.  Notwithstanding anything to the contrary contained in this
Section 16, the purchase, sale and conveyance of the Property shall be made with the limited warranties from Seller to Purchaser
contained in this Agreement and the Deeds. 

 

(b)          Disclaimer.
Purchaser agrees that, except as and to the extent provided in this Agreement or in the documents to be delivered by Seller at
Closing (subject to the provisions set forth in Section 16(a) of this Agreement),
Purchaser is purchasing the Property in “AS IS”, “WHERE IS”, “WITH ALL FAULTS” condition, and
without any other warranties, representations or guarantees, either express or implied, of any kind, nature, or type whatsoever
from, or on behalf of, Seller. 

 

(i)          Except
as and to the extent provided in the representations and warranties contained in this Agreement and in the documents to be delivered
by Seller at Closing, each of Seller and its Affiliates, and its and their officers, directors, employees, members, managers and
agents, expressly disclaims, has not made, will not make, and does not make, any warranties or representations, express or implied,
with respect to the Property or any portion thereof, the physical condition or repair or disrepair thereof (whether patent or latent),
the value, profitability or marketability thereof or the title thereto, or of any of the appurtenances, facilities or equipment
thereon;

 

(ii)         Except
as and to the extent provided in this agreement, Each of Seller and its Affiliates, and its and their officers, directors, employees,
members, managers and agents, expressly disclaims, has not made, will not, and does not, make, any warranties, express or implied,
of merchantability, habitability or fitness for a particular use;

 

(iii)        Except
as and to the extent provided in this agreement, Purchaser has not relied upon any statement or representation by or on behalf
of Seller unless such statement or representation is specifically set forth in this Agreement or in the documents to be delivered
by Seller at Closing; 

 

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(iv)        AS
OF THE DATE HEREOF AND THROUGH THE END OF THE DUE DILIGENCE PERIOD, PURCHASER HAS MADE AND WILL MAKE SUCH LEGAL, FACTUAL AND OTHER
INQUIRIES AND INVESTIGATIONS AS PURCHASER HAS DEEMED NECESSARY, DESIRABLE OR APPROPRIATE WITH RESPECT TO THE PROPERTY AND THE VALUE
AND MARKETABILITY THEREOF AND OF THE APPURTENANCES, FACILITIES AND EQUIPMENT THEREOF. SUCH INQUIRIES AND INVESTIGATIONS OF PURCHASER
ARE HEREBY DEEMED TO INCLUDE, WITHOUT LIMITATION, THE PHYSICAL COMPONENTS OF ALL PORTIONS OF THE IMPROVEMENTS, THE CONDITION OF
REPAIR OF THE PROPERTY OR ANY PORTION THEREOF, SUCH STATE OF FACTS AS A CURRENT TITLE REPORT AND/OR AN ACCURATE SURVEY, ENVIRONMENTAL
EXAMINATIONS, AND FLOOD PLAIN EXAMINATIONS WOULD SHOW OR DISCLOSE, AND THE PRESENT AND FUTURE ZONING, ORDINANCES, RESOLUTIONS AND
REGULATIONS OF THE CITY, COUNTY AND STATE WHERE THE IMPROVEMENTS ARE LOCATED.

 

(c)          Except
as specifically set forth in this Agreement or in the documents to be executed and delivered by Seller at Closing, each of Seller
and its Affiliates, and its and their officers, directors, members, managers, partners, principals, employees and agents, expressly
disclaims, has not made, will not make, and does not make, any warranties or representations, express or implied, that relate to,
arise out of or with respect to (1) Purchaser’s ability, or inability, to obtain or maintain temporary or final certificates
of occupancy or other licenses for the use or operation of the Improvements, and/or certificates of compliance for the Improvements,
(2) the actual or potential income, or profits, to be derived from the Property, (3) the real estate, or other, taxes or special
assessments, now or hereafter payable on account of, or with respect to, the Property, (4) Purchaser’s ability or inability
to demolish the Improvements or otherwise develop the Property, or (5) the environmental condition of the Property.

 

17.                        General
Provisions.

 

(a)          Entire
Agreement. This Agreement and exhibits hereto constitute the entire agreement of Seller and Purchaser with respect to sale
of the Property and supersedes all prior or contemporaneous written or oral agreements, whether express or implied, related to
the subject matter hereof.

 

(b)          Amendments.
This Agreement may be amended only by a written agreement executed and delivered by Seller and Purchaser.

 

(c)          Waivers.
No waiver of any provision or condition of, or default under, this Agreement by any party shall be valid unless in writing signed
by such party. No such waiver shall be taken as a waiver of any other or similar provision or of any future event, act, or default.

 

(d)          Time.
Time is of the essence of this Agreement. In the computation of any period of time provided for in this Agreement or by law, the
day of the act or event from which the period of time runs shall be excluded, and the last day of such period shall be included,
unless it is not a Business Day, in which case it shall run to the next day which is a Business Day.

 

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(e)          Assignment.
This Agreement may not be assigned by Purchaser without the consent of Seller. A direct or indirect transfer, sale or assignment
of the majority stock interest in a corporate purchaser or the majority membership interest in a limited liability company purchaser
or the majority or any general partnership interest of a partnership purchaser shall constitute an assignment of this Agreement,
which assignment or attempted assignment shall be void if made without the written consent of Seller. Notwithstanding the foregoing,
Purchaser may assign its rights under this Agreement, without the consent of Seller, to an Affiliate, including Purchaser’s
Designee, provided the assignee assumes in writing all of the obligations of Purchaser to be performed under this Agreement in
a form reasonably acceptable to Seller and an original of such fully executed assignment and assumption agreement is delivered
to Seller at least five (5) Business Days prior to the Closing. Purchaser shall not assign this Agreement to an entity or individual
which would make any of the statements, representations or warranties set forth in Section 8 of this Agreement untrue or
incorrect in any material respect and any such assignment shall be null and void and without force and effect. No assignment of
this Agreement shall relieve Purchaser from any of its obligations set forth herein arising prior to or after the effective date
of the assignment.

 

(f)          Notices.
Any notices or other communications permitted or required to be given hereunder shall be in writing, shall be delivered (i) personally,
in which case notice shall be deemed delivered upon receipt or refusal of delivery, (ii) by reputable overnight delivery service,
in which case notice shall be deemed delivered on the date of deposit with such courier, or (iii) by fax, in which case notice
shall be deemed delivered upon the mechanical confirmation of delivery, and shall be addressed to the respective party as set forth
in this subsection (f). Notices on behalf of the respective parties may be given by their attorneys and such notices shall have
the same effect as if in fact subscribed by the party on whose behalf it is given.

 

	To Seller:	c/o WCP Investment Manager LLC
	 	40 Danbury Road
	 	Wilton, CT  06897-4406
	 	Attention: Mr. Jordan S. Socaransky
	 	Facsimile: 203-429-8599
	 	 
	with a copy to:	c/o WCP Investment Manager LLC
	 	40 Danbury Road
	 	Wilton, CT  06897-4406
	 	Attention: Marc Porosoff, Esquire
	 	Facsimile: 203-429-8599
	 	 
	with a copy to:	c/o Capital Health Group, LLC
	 	Capital Health Group, LLC
	 	1422 Clarkview Road
	 	Baltimore, MD 21209
	 	Attention: Mr. Kenneth R. Assiran
	 	Facsimile: 410 342 7101 
	 	 
	with a copy to:	Drinker Biddle & Reath LLP
	 	500 Campus Drive
	 	Florham Park, NJ 07932-1047
	 	Attention:  Michael San Giacomo, Esq.
	 	Facsimile: 973-360-9831

 

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	To Purchaser:	Woodbury Mews III, LLC
	 	Woodbury Mews IV, LLC
	 	Woodbury Mews Land Parcels, LLC
	 	Attn: John Mark Ramsey
	 	Attn: Kevin Thomas 
	 	189 S. Orange Avenue, Suite 1700
	 	Orlando, FL 32801
	 	Phone:  407-999-7679
	 	Fax:  407-999-5210
	 	 
	with a copy to:	Michael A. Okaty, Esq.
	 	Foley & Lardner LLP
	 	111 N. Orange Avenue, Suite 1800
	 	Orlando, FL 32801
	 	Telephone:  407-423-7656
	 	Fax:  407-648-1743
	 	E-mail:  mokaty@foley.com

 

(g)          Governing
Law. This Agreement shall be governed in all respects by the internal laws of the State of New Jersey without regard to the
laws regarding conflicts of laws.

 

(h)          Counterparts.
This Agreement may be executed in any number of identical counterparts, any or all of which may contain the signatures of less
than all of the parties, and all of which shall be construed together as a single instrument.

 

(i)          Construction.
Seller and Purchaser agree that each party and its counsel have reviewed and approved this Agreement, and that any rules of construction
that provide that ambiguities be resolved against the drafting party shall not be used in the interpretation of this Agreement
or any amendments or exhibits hereto. The words “include”, “including”, “includes” and any
other derivation of “include” means “including, but not limited to” unless specifically set forth to the
contrary. As used in this Agreement, the neuter shall include the feminine and masculine, the singular shall include the plural,
and the plural shall include the singular, except where expressly provided to the contrary. The words “herein”, “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section,
subsection or other subdivision. Headings of sections herein are for convenience of reference only, and shall not be construed
as a part of this Agreement. Except to the extent expressly provided otherwise in this Agreement, references to “sections”
or “subsections” in this Agreement shall refer to sections and subsections of this Agreement, and references to “exhibits”
in this Agreement shall mean exhibits attached to this Agreement.

 

(j)          No
Recording. Purchaser shall not, and shall not cause or permit any other person to, record this Agreement or any memorandum
or other evidence thereof in any public records. If Purchaser violates the terms of this Subsection (j), then this Agreement
shall be deemed to be breached by Purchaser and, in Seller’s sole discretion, ipso facto terminated. Nothing
herein shall be deemed to prevent Purchaser from filing a Notice of Settlement.

 

(k)          Public
Announcement. Seller and Purchaser agree to cooperate with each other to make joint and/or coordinated public announcements
disclosing this Agreement and the Transactions contemplated hereby.

 

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(l)          Radon.
Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present
health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines may have been
found in buildings in the state in which the Real Property is located. Additional information regarding radon and radon testing
may be obtained from public health units of the county in which the Real Property is located.

 

18.                        Indemnification.

 

(a)          Reserved.

 

(b)          Indemnification
by Seller. From and after Closing, Seller shall indemnify, defend, and hold harmless Purchaser and each of their officers,
directors, employees, Affiliates, successors and assigns from and against, and pay or reimburse each of them for and with respect
to, any Indemnification Loss relating to, arising out of or resulting from any of the following:

 

(i)          Subject
to the provisions of Section 6, any material breach by Seller of any of its representations, warranties, covenants or agreements
in this Agreement or any other Document;

 

(ii)         The
operation, ownership or control of the Property prior to Closing, including without limitation, any and all liabilities which relate
to events occurring prior to the Closing, regardless of when they are asserted, except for (x) facts disclosed in or pursuant to
Section 6 of this Agreement, the Diligence Materials, or in the Purchaser Commissioned Reports, but only to the extent such
information constitutes Purchaser Knowledge; (y) Assumed Obligations, and (z) obligations, indebtedness or liabilities to the extent
of any Adjustment Amount credited to the Purchaser; and

 

(iii)        Claims
by any other party claiming to have represented Seller as broker or agent in connection with the transactions contemplated by this
Agreement.

 

(c)          Indemnification
by Purchaser. From and after Closing, Purchaser shall indemnify, defend and hold harmless Seller and its officers, directors,
employees, agents, representatives, Affiliates, successors and assigns from and against, and pay or reimburse each of them for
and with respect to any Indemnification Loss relating to, arising out of or resulting from any indemnification of the following: 

 

(i)          Any
material breach by Purchaser of any of its representations, warranties, covenants or agreements in this Agreement or any other
Document;

 

(ii)         The
ownership and operation of the Property post-Closing, and the Assumed Obligations.

 

(iii)        Claims
by any other party, other than SN, claiming to have represented Purchaser as broker or agent in connection with the transactions
contemplated by this Agreement.

 

(d)          Administration
of Indemnification. For purposes of administering the indemnification provisions set forth in Section 18(b) and Section
18(c), the following procedure shall apply:

 

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(i)          Whenever
a claim shall arise for indemnification under this Section 18, the party entitled to indemnification (the “Indemnified
Party”) shall give a reasonably prompt 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.

 

(ii)         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 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, (x) 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 (y) 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 (x), 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. In the case of clause (y), the Indemnifying Party shall
pay all costs of defense of both itself and the actual out-of-pocket costs of the Indemnified Party.

 

(iii)        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 from the Indemnifying Party of
defense expenses incurred and prompt indemnification from the Indemnifying Party in accordance with this Section 18.

 

(iv)        Failure
or delay by an Indemnified Party to give a reasonably prompt notice of any claim 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, except that no claim shall be brought after the expiration of the
Survival Period. Notwithstanding anything to the contrary contained herein, the parties agree that no indemnification right or
obligation shall apply to the extent any such Indemnification Loss or expense is paid to an Indemnified Party by an insurance company.

 

(v)         The
right to pursue indemnification as set forth in this Section 18 shall survive the Closing hereunder for a period of eighteen
(18) months following the Closing (the “Survival Period”).

 

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(vi)        Notwithstanding
anything to the contrary in this Agreement, (i) the right to pursue indemnification as set forth in this Section 18 shall
be actionable or payable only if valid claims for Losses, if any, collectively aggregate more than TWENTY FIVE THOUSAND and No/100
U.S. Dollars ($25,000.00) (the “Floor”); and (ii) the aggregate maximum liability of the entities comprising
the Seller under this Section 18 shall not exceed $1,500,000.00 (the “Cap”); provided, however, that
the foregoing limitation shall not apply in the case of fraud on the part of Purchaser, Seller or any of their respective Affiliates.
In addition, Purchaser shall first seek recovery under any insurance policies, the Title Insurance Policy and other applicable
agreements, and Seller shall not be liable to Purchaser to the extent Purchaser’s claim is actually satisfied from any sums
recovered from such insurance policies, Title Insurance Policy or other applicable agreements. FINALLY, IN NO EVENT SHALL EITHER
PARTY EVER BE LIABLE FOR ANY CONSEQUENTIAL OR PUNITIVE DAMAGES OTHER THAN IN THE EVENT OF FRAUD.

 

(vii)       The
indemnification provisions in this Section 18 shall be the sole and exclusive remedy of any Indemnified Party with respect
to any claim for Indemnification Loss arising from or in connection with this Agreement.

 

19.                           Diligence
Materials. Seller has delivered or will make available to Purchaser all plans, maps, descriptions, permits, certifications,
Licenses, approvals, environmental assessments, environmental audits, and other diligence materials (but not including any appraisals)
(the “Diligence Materials”) respecting the Property in Seller's possession or control, which material shall
be returned to Seller by Purchaser if Closing is not completed and Purchaser will not retain any copies. For purposes of this Agreement,
Diligence Materials shall be deemed to include all Title Commitments, Surveys and results of Tests, including environmental reports
and engineering reports relating to the physical condition of the Property, but shall not be deemed to include any appraisals.
Purchaser shall make no claim under this Agreement, for breach of representation or warranty, indemnification or otherwise, in
respect of a fact, circumstance or condition of which Purchaser has Purchaser Knowledge prior to the Closing, except that the foregoing
shall not prevent Purchaser from raising an objection as to any fact, circumstance or condition disclosed in the Title Commitments,
Surveys, the Diligence Materials or in the Purchaser Commissioned Reports and shall not prevent Purchaser from exercising any right
to terminate this Agreement as provided herein on account of any such fact, circumstance or condition disclosed in the Diligence
Materials or in the Purchaser Commissioned Reports whether or not such fact, circumstance or condition is contrary to a representation
or warranty of Seller contained in this Agreement. The provisions of this Section 19 shall survive the closing of title.

 

20.                           Facsimile
and PDF Signatures. The execution of this Agreement and all notices given hereunder and all amendments hereto, may be effected
by facsimile signatures or signatures in portable document format (pdf) delivered by electronic mail, all of which shall be treated
as originals; provided, however, that the party receiving a document with a facsimile or pdf signature may, by notice to the other,
require the prompt delivery of an original signature to evidence and confirm the delivery of the facsimile or pdf signature. Purchaser
and Seller each intend to be bound by its respective facsimile transmitted or pdf signature, and is aware that the other party
will rely thereon, and each party waives any defenses to the enforcement of the Agreement, and documents, and any Notices delivered
by facsimile transmission or transmission by electronic mail of pdf signatures.

 

21.                          Severability.
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid
or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of
this Agreement shall be valid and be enforced to the fullest extent permitted by law.

 

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22.                           Calculation
of Time Periods. Unless otherwise specified, in computing any period of time described herein, the day of the act or event
on which the designated period of time begins to run shall not be included and the last day of the period so computed shall be
included, unless such last day is a Saturday, Sunday or legal holiday, in which event the period shall run until the next day which
is not a Saturday, Sunday or a legal holiday.

 

23.                           Like-Kind
Exchange. Purchaser acknowledges that Seller may, at Seller’s option, include Seller’s sale of the Property
in a like-kind exchange under the Code. Purchaser shall reasonably cooperate with Seller and shall execute any documents reasonably
required to permit Seller to effect such a like-kind exchange pursuant to the Code, provided that such like-kind exchange shall
not delay the Closing or cause Purchaser to incur any additional liability or expense. Seller acknowledges that Purchaser may,
at Purchaser’s option, include Purchaser’s acquisition of the Property in a like-kind exchange under the Code. Seller
shall reasonably cooperate with Purchaser and shall execute any documents reasonably required to permit Purchaser to effect such
a like-kind exchange pursuant to the Code, provided that such like-kind exchange shall not delay the Closing or cause Seller to
incur any additional liability or expense.

 

24.                           Certificate
of Occupancy; etc. If any certificate of occupancy, certificate of continued occupancy, site plan waiver, smoke detector
certificate or other approval is necessary to legally convey title to the Real Property, Seller shall use commercially reasonable
efforts to obtain any such approval at its sole cost and expense prior to the Closing Date. If any alterations or improvements
to the Real Property are required in order to obtain any such certificate or approval, then Seller shall use commercially reasonable
efforts to perform such alterations and improvements prior to the Closing Date, and Seller shall have the right to postpone the
Closing Date for up to thirty (30) days in order to perform such alterations and improvements. The costs and expenses of performing
any alterations or improvements for any Real Property shall be the sole responsibility of the Seller. The provisions of this Section
24 shall survive the Closing.

 

25.                          Tax
Sale Certificates. Seller represents and warrants that WM Acquisitions, LLC (“WMA”), an Affiliate of
Seller, has good and marketable title (subject to liens in connection with the existing mortgage financing) to the following tax
sale certificates encumbering the Adjacent Land: Tax Sale Certificate No. 05-0074; Tax Sale Certificate No. 05-0075; Tax Sale Certificate
No. 05-0076; Tax Sale Certificate No. 2007-0058; Tax Sale Certificate No. 2010-0112; Tax Sale Certificate No. 2010-0115; and
Tax Sale Certificate No. 2010-0116 (collectively, the “Tax Sale Certificates”), which are the subject of tax
sale certificate foreclosure actions by WMA currently pending in the Superior Court of New Jersey, Chancery Division, Docket nos.
F-007892-12, F-007893-12, F-007894-12 and F-007895-12 (collectively, the “Tax Foreclosure Actions”). Seller
represents and warrants that it has paid all outstanding taxes on the Adjacent Lands as of the date of execution of this Agreement,
and will continue to pay all taxes that accrue on the Adjacent Lands up to and including the quarterly taxes for the quarter during
which Closing occurs. It is the intention of the parties to have title to the Adjacent Land prior to Closing and in that regard,
Seller shall prosecute the pending Tax Foreclosure Actions as promptly as permitted by Rules of Court and Orders of the Court having
jurisdiction, Seller agrees time is of the essence. At the Closing, Seller shall cause WMA to (i) if final judgments have not yet
been entered in the Tax Foreclosure Actions, assign to Purchaser the Tax Sale Certificates, and its rights to proceed in the Tax
Foreclosure Actions, pursuant to an Assignment of Tax Sale Certificates in the form attached hereto as Exhibit F-2;
and (ii) if final judgments have been entered in one or more of the Tax Foreclosure Actions, convey the Adjacent Land to Purchaser
by Deed in the form annexed hereto as Exhibit C. Seller shall manage the Tax Foreclosure Actions on behalf of Purchaser
after the Closing, and, except for the costs expressly required to be borne by Seller under this Section 25, Purchaser shall
indemnify, defend and hold Seller (and its Affiliates) harmless from any claims, demands, costs, damages, losses or causes of action
with respect to the Tax Sale Certificates or the Tax Foreclosure Actions after the Closing. For the avoidance of doubt, Purchaser
shall assume at Closing all risk in connection with the completion of the Tax Foreclosure Actions on the condition that the Tax
Foreclosure Actions have been properly filed and prosecuted as of Closing and the Title Company issues a certificate of regularity
as to the Tax Foreclosure Actions. Purchaser shall pay all attorneys’ fees and disbursements in connection with the Tax Foreclosure
Actions incurred after the Closing, up to $25,000.00, and Seller shall pay all attorneys’ fees and disbursements in connection
with the Tax Foreclosure Actions incurred after the Closing in excess of $25,000.00. The provisions of this Section 25 shall
survive the Closing.

 

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26.                           City
Agreement and PILOT Agreement. Purchaser acknowledges that Seller is a party to that certain
Sale and Assignment Agreement with the City of Woodbury (the “City”), dated March 7, 2012 (the “City
Agreement”) and that certain Assignment of Financial Agreement from the City, dated March 30, 2012 (the “PILOT
Assignment”) pursuant to which the City assigned to Seller a certain PILOT Agreement (as defined in the PILOT Assignment,
the “PILOT Agreement”). Seller shall use all commercially reasonable efforts to assign to Purchaser all of Seller’s
right, title and interest in the City Agreement and the Pilot Agreement pursuant to an Assignment of City Agreement in the form
attached hereto as Exhibit F-3, Assignment of Pilot Agreement in the form attached hereto as Exhibit F-4;
or such other form as may be acceptable to the City. Purchaser acknowledges that: (i) the consent of the City is required under
the terms of the City Agreement and the PILOT Agreement to the assignment of the PILOT Agreement; (ii) under applicable legal requirements,
Purchaser may be required to organize as an urban renewal entity in order to become a party to the PILOT Agreement; and (iii) the
conveyance of certain tax sale certificates from the City to WMA, as contemplated by the City Agreement, has already taken place,
and such tax sale certificates are included in the Tax Sale Certificates to be conveyed to Purchaser pursuant to Section 25.
In the event that Seller has not obtained the consent of the City to the assignment of the PILOT Agreement to Purchaser with respect
to the Adjacent Land prior to the Closing, then Seller and Purchaser shall continue to use commercially reasonable efforts
to pursue such assignments until the City consents or irrevocably rejects such assignment, in which event the Seller shall have
no further obligation to pursue the assignment and no liability to the Purchaser for the failure to complete such assignments.
 The provisions of this Section 26 shall survive the closing of title. 

 

27.         Non-compete.
Except for those properties currently being owned or operated by Seller and shown on Schedule 4, Seller agrees that
for three (3) years following the Closing Date, Seller and Seller’s Affiliates shall not directly or indirectly (unless acting
in accordance with Purchaser’s written consent) own, manage, operate or participate in the ownership, management or operation
of, or permit its name to be used by or in connection with, any business or enterprise that develops, owns, operates or manages
any facility that is used or intended for use, in whole or in part, for occupancy as an independent or assisted living facility
for senior citizens and that is located within a five (5) mile radius of the Real Property; provided, however, that the foregoing
shall not restrict loans made or acquired by Capital Funding Group, Inc., CFG Community Bank, Westport Capital Partners LLC, or
their Affiliates. The provisions of this Section 27 shall survive the Closing.

 

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28.         Income
Support. (a) Subject to and in accordance with the provisions of this Section 28 and the Income Support Agreement
attached hereto as Exhibit P (the “Income Support Agreement”), if, after the Closing,
the NOI for the Property for any Quarter is less than $775,000.00 (the “Quarterly Threshold”), Seller shall
pay to Purchaser the difference between the Quarterly Threshold and the actual NOI for such Quarter (the “Income Support
Payment”) within thirty (30) days after receipt of notice from Purchaser, setting forth in reasonable detail the calculation
of NOI for such Quarter. A “Quarter” shall be a period of three (3) consecutive calendar months, commencing,
with respect to the first Quarter, on the first day of the first (1st) calendar month after the month in which the Closing
Date occurs, and with respect to each subsequent Quarter, on the day immediately following the end of the preceding Quarter. A
“Year” shall be a period of four (4) consecutive Quarters, commencing, with respect to the first Year, on the
first day of the first Quarter as defined in the immediately preceding sentence, and with respect to each subsequent Year, on the
day immediately following the end of the preceding Year.

 

(b)          At
the end of any Year during which Seller has made any Income Support Payments pursuant to Section 28(a), Seller and Purchaser
shall reconcile any Income Support Payments made over such Year as follows: (i) if the NOI for the Property for such Year is less
than $3,100,000.00 (the “Annual Threshold”), Seller shall pay to Purchaser the difference between the Annual
Threshold and the actual NOI for such Year, less the amount of any Income Support Payments paid by Seller during such Year, and
(ii) if the NOI for the Property for such Year is equal to or more than the Annual Threshold, Purchaser shall pay to Seller the
amount of any Income Support Payments paid by Seller during such Year. The reconciliation pursuant to this Section 28(b)
shall occur within thirty (30) days after the end of a Year, and Seller or Purchaser, as applicable, will make any required payment
to the other party within thirty (30) days after the reconciliation. Notwithstanding anything to the contrary contained in this
Section 28(b), Seller shall not be required to make the payment set forth in clause (i) of the first sentence of this Section
28(b) if Seller’s obligations under this Section 28 have terminated pursuant to Section 28(c) prior to
the reconciliation.

 

(c)          Notwithstanding
anything to the contrary contained in this Section 28, Seller’s liability under this Section 28 shall not exceed
$2,000,000.00 in the aggregate. Seller’s obligations under this Section 28 shall terminate on the later to occur of
(i) the last day of the first Year after the Closing Date occurs, or (ii) the last day of the second (2nd) consecutive
Quarter in which the NOI from the Property is in excess of the Quarterly Threshold.

 

(d)          The
provisions of this Section 28 shall survive the Closing.

 

29.         Schedules
and Exhibits. Each Schedule and Exhibit referred to in this Agreement shall be deemed to be attached hereto and incorporated
by reference even though it may be maintained separately from this Agreement or completed after the Effective Date so long as
it is acknowledged as a Schedule or an Exhibit to this Agreement by the parties hereto as of Closing. Any item disclosed hereunder
(including in the Schedules and Exhibits hereto) shall be deemed disclosed for all purposes hereof irrespective of the specific
representation or warranty to which it is explicitly referenced. The Schedules and Exhibits not attached hereto as of the Effective
Date will be prepared and mutually agreed to by the parties within five (5) business days of the Effective Date, except for (i)
Exhibit B, which will be prepared in the time frame set forth in Section 2(a); (ii) the Management Agreement,
which will be prepared in the time frame set forth in Section 4(g); and (iii) the Interim Licensure Arrangements, which
shall be finalized prior to July 12, 2013. The parties agree to cooperate and act in good-faith during the preparation of such
documents.

 

    	45

    	 

    

 

30.         Bulk
Sale Tax Compliance. The parties will comply with and file any and all necessary notifications arising from this Agreement
with the New Jersey Division of Taxation Bulk Sale Section in accordance with N.J.S.A. 54:50-38, and comply with any escrow or
other requirements relating thereto. No later than twenty (20) days prior to Closing, Seller shall provide Purchaser with New
Jersey Division of Taxation forms C-9600, completed by Seller with Seller information required, and Asset Transfer Tax Declaration.
Purchaser will complete form C-9600 with Purchaser information and file with the New Jersey Division of Taxation Bulk Sale Section
no later than fifteen (15) days prior to Closing. Any notice or response received by either party from the New Jersey Division
of Tax Bulk Sale Section shall be promptly provided to the other party. Receipt of a response from the New Jersey Division of
Taxation Bulk Sale Section with a release or escrow directive, shall be a condition of Closing.

 

[SIGNATURES
CONTINUE ON FOLLOWING PAGES.]

 

    	46

    	 

    

 

IN
WITNESS WHEREOF, the Purchaser has executed this Agreement on the date first above written.

 

	 	PURCHASER:
	 	 
	 	Woodbury Mews III, LLC
	 	 
	 	By: 	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	Woodbury Mews IV, LLC
	 	 
	 	By: 	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	Woodbury Mews Land Parcels, LLC
	 	 
	 	By: 	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Seller has executed this Agreement on the date first above written.

 

	 	 	SELLER:
	 	 	 	 	 	 
	Employer Identification No.:	 	
        THREE WM REAL ESTATE, LLC,

        a Delaware limited liability company

	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager

	 	 	 	 	 
	 	 	 	 	By:	/s/	Ken Assiran
    
	 	 	 	 	Name:	Ken Assiran
	 	 	 	 	Title:	President

	 	 	 	 	 	 
	 	 	 	 	 	 
	Employer Identification No.:	 	THREE WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager

 

		 	 	 	By:	/s/	Ken Assiran
    
	 	 	 	 	Name:	Ken Assiran
	 	 	 	 	Title:	President

 

 

[SIGNATURES
CONTINUE ON FOLLOWING PAGE.] 

 

    	 

    	 

    

 

	 	 	SELLER:
	 	 	 	 	 	 
	Employer Identification No.:	 	
        FOUR WM REAL ESTATE, LLC,

        a Delaware limited liability
        company

	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 	 

		 	 	 	By:	/s/	 Ken Assiran
	 	 	 	 	Name:	 Ken Assiran
	 	 	 	 	Title:	President

 

	 	 	 	 	 	
	Employer Identification No.:	 	FOUR WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 

		 	 	 	By:	/s/	Ken Assiran
    
	 	 	 	 	Name:	Ken Assiran
	 	 	 	 	Title:	President

 

 

    	 

    	 

    

 

ACCEPTANCE
AND APPROVAL BY ESCROW HOLDER

 

Escrow
Holder hereby (i) acknowledges receipt of a fully executed copy or counterpart copies of the foregoing Agreement on this 26th
day of June, 2013, and (ii) agrees to establish an escrow and act as the Escrow Holder in accordance with the provisions
of the Agreement. Escrow Holder further agrees to deliver immediately to Purchaser and Seller fully executed copies of the Agreement

 

	 	Acres Land Title Agency, Agent for Chicago Title Insurance Company, 
	 	 	 
	 	By:	/s/ Deborah Bannworth
	 	Printed:	Deborah Bannworth
	 	Title:	 

 

 

  

	Escrow No.:	 	 

  

	Escrow Officer and	 
	Address for Notices:	Acres Land Title Agency 
	 	Agent for Chicago Title Insurance Company
	 	c/o Debbie Bannworth
	 	55 Essex Street
	 	Millburn, New Jersey 07041
	 	Phone: (973)376-4643
	 	Fax: (973)912-8195

 

Wire
Transfer Information:

 

	 	OUR BANK:	 
	 	 	 
	 	ABA ROUTING:	 
	 	OUR ACCOUNT NAME:	 
	 	ACCOUNT NUMBER:	 
	 	REFERENCE:	 
	 	Project Name:	 
	 	CLIENT NAME:	 
	 	Attention:	 

  

    	 

    	 

    

 

Exhibits
and Schedules to the Agreement

 

	Exhibit A-1	Description of Facilities
	 	 
	Exhibit A-2	Description of Land
	 	 
	Exhibit B	Purchase Price Allocation
	 	 
	Exhibit C	Form of Deeds
	 	 
	Exhibit D	Form of Guaranty
	 	 
	Exhibit E	FIRPTA Affidavit
	 	 
	Exhibit F – 1	Form of Assignment of Property Agreements
	 	 
	Exhibit F – 2	Form of Assignment of Tax Sale Certificates
	 	 
	Exhibit F – 3	Form of Assignment of City Agreement
	 	 
	Exhibit F – 4	Form of Assignment of Pilot Agreement
	 	 
	Exhibit G	Form of Management Agreement
	 	 
	Exhibit H	Form of Interim Licensure Arrangements
	 	 
	Exhibit I	Schedule of Vehicles and Equipment
	 	 
	Exhibit J	Rent Roll
	 	 
	Exhibit K	Employee Contracts and Matters
	 	 
	Exhibit L	Form of Assignment of Residency Agreements and Commercial Leases
	 	 
	Exhibit M	Form of Bill of Sale and General Assignment
	 	 
	Exhibit N	Form of Audit Letter
	 	 
	Exhibit O	Form of Bulk Sales Tax Escrow Agreement
	 	 
	Exhibit P	Form of Income Support Agreement
	 	 
	Schedule 1	Retained Computer Software
	 	 
	Schedule 2	Property Agreements
	 	 
	Schedule 3	Environmental Reports
	 	 
	Schedule 4	Exclusions from Noncompete
	 	 
	Schedule 5	Existing Manager Property
	 	 
	Schedule 6	Insurance
	 	 
	Schedule 7	Licenses
	 	 
	Schedule 8	Litigation

  

    	 

    	 

    

 

EXHIBIT
A-1

 

DESCRIPTION
OF FACILITIES

 

	Facility Name	 	Address	 	Number of Beds/Units
	 	 	 	 	 
	Three Woodbury Mews	 	
        124 (a/k/a 160) Green Avenue

        Block 142, Lot 2

        City of Woodbury, Gloucester

        County, New Jersey
	 	118 Beds
	 	 	 	 	 
	Four Woodbury Mews	 	
        122 Green Avenue

        Block 142, Lot 3

        City of Woodbury, Gloucester

County, New Jersey 
	 	130 Units
	 	 	 	 	 

    	 

    	 

    

 

EXHIBIT
A-2

 

DESCRIPTION
OF LAND

 

(See Attached) 

 

    	 

    	 

    

 

EXHIBIT
B

 

PURCHASE
PRICE ALLOCATION

 

	Facility	 	Amount	 
	Three Facility	 	$		 
	Four Facility	 	$		 
	[OTHER ALLOCABLE ITEMS]	 	$		 
	TOTAL PURCHASE PRICE	 	$		 

  

    	 

    	 

    

 

EXHIBIT
C

 

Form
of Deed

Prepared by:

_______________

_______________

_______________

 

BARGAIN
AND SALE DEED

 

This Bargain and Sale Deed is
made on ________________, 2013.

 

	BETWEEN	___________________, a ___________________,
	 	whose address is ___________________________.
	 	 
	 	referred to as Grantors
	 	 
	AND	________________________, a ____________,
	 	whose address is, ___________________________.
	 	 
	 	referred to as Grantees.

 

The words “Grantor”
and “Grantee” shall mean all Grantors and Grantees listed above.

 

TRANSFER OF OWNERSHIP.
The Grantor does hereby grant, bargain, sell, convey and transfer ownership of the property (called the “Property”)
described below to the Grantee. This transfer is made for the sum of _____________________ Dollars ($____________). The Grantor
acknowledges receipt of this money.

 

TAX MAP REFERENCE. (N.J.S.A.
46:15-1.1)

 

	 	Municipality:	___________________.	 
	 	Description:	___________________.	 

 

PROPERTY. The Property
consists of the land (the “Land”) and all the buildings and structures on the Land in the City of Woodbury, County
of Gloucester, State of New Jersey and the easements benefitting such Land, building and structures.

 

SEE LEGAL DESCRIPTION ATTACHED
HERETO AS EXHIBIT A AND MADE A PART HEREOF.

 

The street
address of the Property is: ____________________________________.

 

Being
the same premises conveyed to Grantor by Deed dated [____________] from [____________] which Deed was recorded in the Office
of the County Clerk of [___________] County in Deed Book [_____], page [______].

 

    	 

    	 

    

 

Promises
by Grantor. The Grantor promises that, except for easements, covenants, and restrictions of record, the Grantor has done no
act to encumber the property. This promise is called a “covenant as to grantor's acts” (N.J.S.A. 46:4-6). This
promise means that the Grantor has not allowed anyone else to obtain any legal rights which affect the property (such as by making
a mortgage or allowing a judgment to be entered against the Grantor).

 

SIGNATURES.
The Grantor signs this Deed as of the date at the top of the first page.

 

	WITNESSES:	 	GRANTOR:
	 	 	 
	 	 	________________________________
	 	 	a ______________________________
	___________________________	 	 
	Printed Name:	 	 
	 	 	 
	___________________________	 	By: ______________________________
	Printed Name:	 	Name: ______________________________
	 	 	Title: _______________________________

 

    	 

    	 

    

 

	STATE OF ____________	)
	 	) ss.
	COUNTY OF __________	)

 

Before me this ______ day of
____________, 2013, personally appeared ________________, who acknowledged himself to be the ________________ of _______________________,
a ___________________, and as such, being authorized to do so, executed the foregoing instrument on behalf of said corporation.

 

WITNESS my hand and Notarial
Seal this ____ day of ____________, 2013.

 

	My Commission Expires:	 
	_____________	Notary Public – Signature
	 	 
	My County of Residence:	 
	_________________	Notary Public – Printed

 

RECORD AND RETURN TO: 

 

    	 

    	 

    

 

EXHIBIT
D

 

Form
of Guaranty

 

GUARANTY
OF agreement of sale

 

THIS
GUARANTY OF AGREEMENT OF SALE, dated as of __________, 2013 (the “Guaranty”), is executed by CAPITAL HEALTH
GROUP, LLC (“Guarantor”), and extended to Woodbury Mews III, LLC, Woodbury
Mews IV, LLC, and Woodbury Mews Land Parcels, LLC, each a Delaware limited
liability company (individually and collectively, the “Purchaser”), for the benefit of THREE WM REAL ESTATE,
LLC, THREE WM OPERATING, LLC, FOUR WM REAL ESTATE, LLC, and FOUR WM OPERATING, LLC, each a Delaware limited
liability company (each a “Seller” and collectively “Sellers”).

 

RECITALS:

 

WHEREAS,
Purchaser has agreed to purchase, and Sellers have agreed to sell and cause to be transferred to Purchaser, an assisted living
facility and independent living facility located in Woodbury, New Jersey (the “Facilities”), described in the
Purchase Agreement, and real and personal property associated therewith pursuant to the terms and conditions of that certain Agreement
of Sale between Seller and Purchaser dated June __, 2013 (the “Purchase Agreement”).

 

WHEREAS,
without this Guaranty, Purchaser would be unwilling to consummate the transactions contemplated in the Purchase Agreement.

 

WHEREAS,
because of the direct benefit to Guarantor, as a holder of direct or indirect beneficial ownership interests in each Seller, from
the transaction described in the Purchase Agreement, and as an inducement to Purchaser to enter into the Purchase Agreement, Guarantor
agree to guarantee to Purchaser certain obligations of Sellers pursuant to the Purchase Agreement as set forth herein.

 

NOW,
THEREFORE, in consideration of the benefits received by Guarantor as a result of the Purchaser’s execution of and performance
under the Purchase Agreement, the receipt and sufficiency of which is hereby acknowledged by Guarantor, Guarantor hereby covenants
and agrees as follows:

 

1.          Guaranty
of Payment. Guarantor hereby unconditionally guarantees to Purchaser the payment, when due, of all Seller Obligations. For
the purposes hereof, the term “Seller Obligations” shall include any and all payment, reimbursement, and indemnity
obligations of Seller to Purchaser pursuant to Section 18 and Section 28 of the Purchase Agreement, as such Seller Obligations
may be modified, amended, increased, or extended from time to time by agreement of the Sellers. The guaranty of Guarantor, as set
forth in this section, is a guaranty of payment.

 

    	 

    	 

    

 

2.          Subordination.
All rights and claims of Guarantor now or hereafter existing including, without limitation, rights to distributions or dividends
from the Seller (collectively the “Guarantor Claims”) against Seller or any of Seller’s property which
Seller now owns or shall acquire in the future or hereafter existing shall be subordinate and subject in right of payment to the
prior payment in full of the Seller Obligations to Purchaser by Seller; provided, however that nothing herein shall limit Sellers’
ability to pay Guarantor Claims in the ordinary course of business.

 

3.          Guarantor
Waivers. Guarantor hereby waives and agrees not to assert or take advantage of (a) any right or claim of right to cause a marshalling
of any of Sellers’ assets or the assets of any other party now or hereafter held as security for the Seller Obligations;
(b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of Guarantor, any other guarantor
of the Seller Obligations, or any Seller or any other person or entity, or the voluntary or involuntary dissolution of any Seller
or Guarantor, or the failure of Purchaser to file or enforce a claim against the estate (either in administration, bankruptcy,
or any other proceeding) of any Seller or any other person or entity; (c) any action or non-action on the part of any other person
whomsoever; (d) any defense based upon an election of remedies by Purchaser which destroys or otherwise impairs any subrogation
rights of Guarantor or any other guarantor of the Seller Obligations or the right of Guarantor to proceed against Seller or any
other guarantor for reimbursement, or both; (e) any defense based upon failure of Purchaser to commence an action against any Seller;
(f) any defense based upon acceptance of this Guaranty by Purchaser; (g) any defense based upon the invalidity or unenforceability
of the Purchase Agreement or any of the Seller Obligations; (h) any defense based upon the failure of Purchaser to perfect any
security or to extend or renew the perfection of any security; and (i) any other legal or equitable defenses whatsoever to which
Guarantor might otherwise be entitled, other than to the extent related to the underlying merits of whether or not a Seller Obligation
exists.

 

4.          Consent
to Purchaser’s Actions or Inactions. Guarantor consents that Purchaser may, at any time and from time to time, before
or after any default by any Seller pursuant to the Purchase Agreement, without reducing the liability of Guarantor hereunder and
with or without further notice to or assent from Guarantor:

 

(a)          Waive
or delay the exercise of any of its rights or remedies against any Seller or any other person or entity, including without limitation,
Guarantor guaranteeing payment of any portion of the Seller Obligations; notwithstanding any waiver or delay, Purchaser shall not
be precluded from further exercise of any of its rights, powers or privileges expressly provided for herein or otherwise available,
it being understood that all such rights and remedies are cumulative;

 

(b)          Waive
or extend the time of any Seller’s or any other guarantor’s performance of any and all terms, provisions and conditions
set forth in the Purchase Agreement;

 

(c)          Release
any Seller or any other person or entity, including without limitation any other guarantor guaranteeing the payment of any portion
of the Seller Obligations, from their obligations to repay all or any portion of the Seller Obligations;

 

    	 

    	 

    

 

(d)          Proceed
against Guarantor without first proceeding against or joining any Seller or any other guarantor guaranteeing payment of any portion
of the Seller Obligations; and

 

(e)          Generally
deal with any Seller or other person or party as Purchaser may see fit.

 

Guarantor
shall remain bound under this Guaranty notwithstanding any such exchange, release, surrender, subordination, waiver (whether or
not such waiver is oral or written), delay, proceeding, renewal, extension, modification, act or failure to act, or other dealings
or events described in Subsections 4(a) through (e) above, even if done without notice or consent from Guarantor.

 

5.          Waiver
of Notice. Guarantor waives all notices whatsoever with respect to the Purchase Agreement, this Guaranty, and the Seller Obligations,
including, but not limited to, notice of:

 

(a)          Purchaser’s
acceptance of this Guaranty or its intention to act, or its action, in reliance hereon;

 

(b)          Presentment
and demand for payment of any Seller Obligations or any portion thereof;

 

(c)          Protest
and notice of dishonor or non-payment with respect to any Seller Obligations or any portion thereof;

 

(d)          Any
default by any Seller or any pledgor, grantor of security, or any other guarantor guaranteeing the payment of any portion of the
Seller Obligations;

 

(e)          Any
other notices to which Guarantor may otherwise be entitled; and

 

(f)          Any
demand for payment under this Guaranty.

 

6.          Primary
Liability of Guarantor. Guarantor agrees that this Guaranty may be enforced by Purchaser without the necessity at any time
of resorting to or exhausting any other security or collateral, and Guarantor hereby waives any rights to require Purchaser to
proceed against any Seller or any other guarantor or to require Purchaser to pursue any other remedy or enforce any other right,
except as otherwise provided in the Purchase Agreement. Guarantor further agrees that Guarantor shall have no right of subrogation,
reimbursement or indemnity whatsoever, nor any right of recourse to security for the Seller Obligations against any Seller or any
other guarantor, unless and until all of the Seller Obligations have been paid in full to Purchaser or otherwise satisfied to Purchaser’s
satisfaction. Guarantor further agrees that nothing contained herein shall prevent Purchaser from exercising any other rights available
to it under the Purchase Agreement or any instrument of security if any Seller fails to timely perform the obligations of any Seller
thereunder, and the exercise of the aforesaid rights shall not constitute a discharge of any of Guarantor’s obligations hereunder;
it being the purpose and intent of Guarantor that Guarantor’s obligations hereunder shall be absolute, independent and unconditional
under any and all circumstances. Neither Guarantor’s obligations under this Guaranty nor any remedy for the enforcement thereof
shall be impaired, modified, changed or released in any manner whatsoever by an impairment, modification, change, release or limitation
of the liability of any Seller or any other guarantor or by reason of any Seller’s or any other guarantor’s bankruptcy,
insolvency, death, or dissolution.

 

    	 

    	 

    

 

7.          Subrogation
Rights. Guarantor irrevocably waives any present or future right to which Guarantor is or becomes entitled to be subrogated
to Purchaser’s rights against any Seller or to seek contribution, reimbursement, indemnification, or the like from any Seller
on account of this Guaranty or to assert any other claim or right of action against any Seller on account of, arising under, or
relating to this Guaranty.

 

8.          Cost
of Enforcement. In the event that the Seller Obligations or this Guaranty are not paid when due, or should it be necessary
for Purchaser to enforce any other of its rights under the Purchase Agreement or this Guaranty, Guarantor will pay to Purchaser,
in addition to payment of all Seller Obligations, all third party costs of collection or enforcement, including reasonable attorneys’
fees, paralegals’ fees, legal assistants’ fees, costs and expenses, whether incurred with respect to collection, litigation,
bankruptcy proceedings, interpretation, dispute, negotiation, trial, appeal, defense of actions instituted by a third party against
Purchaser arising out of or related to a Seller Obligation under the Purchase Agreement, enforcement of any judgment based on this
Guaranty or otherwise related to a Seller Obligation, whether or not a suit to collect such amounts or to enforce such rights is
brought or, if brought, is prosecuted to judgment.

 

9.          Term
of Guaranty; Warranties. Notwithstanding any statute of limitations applicable hereto, this Guaranty shall continue in full
force and effect (i) with respect to the Seller Obligations under Section 18 of the Purchase Agreement, for eighteen months following
the date hereof and (ii) with respect to the Seller Obligations under Section 28 of the Purchase Agreement, until the termination
of such Seller Obligations pursuant to the terms of said Section 28; provided, however, that if any claim for Seller Obligations
has been made and remains outstanding, then this Guaranty shall not terminate until such claim for Seller Obligations is fully
paid or otherwise finally resolved. This Guaranty covers the Seller Obligations whether presently outstanding or arising subsequent
to the date hereof. Guarantor warrants and represents to Purchaser, (i) that this Guaranty is binding upon and enforceable against
Guarantor and its successors and assigns in accordance with its terms, (ii) that the execution and delivery of this Guaranty does
not violate any applicable laws or constitute a breach of any agreement to which Guarantor is a party, and (iii) that except as
may have been specifically disclosed to Purchaser in writing, there is no litigation, claim, action or proceeding pending, or,
to the knowledge of such Guarantor, threatened against such Guarantor which would materially adversely affect its ability to fulfill
its obligations hereunder. Guarantor agrees to promptly inform Purchaser of the adverse determination of any litigation, claim,
action or proceeding or the institution of any litigation, claim, action or proceeding against Guarantor which does or could materially
adversely affect its ability to fulfill its obligations hereunder.

 

    	 

    	 

    

 

10.         Additional
Liability of Guarantor. If Guarantor is or becomes liable for any indebtedness owing by any Seller to Purchaser by endorsement
or otherwise than under this Guaranty, such liability shall not be in any manner impaired or reduced hereby but shall have all
and the same force and effect it would have had if this Guaranty had not existed and Guarantor’s liability hereunder shall
not be in any manner impaired, reduced, enhanced or expanded thereby.

 

11.         Cumulative
Rights. Except as otherwise provided in the Purchase Agreement, all rights of Purchaser hereunder or otherwise arising under
the Purchase Agreement or any documents executed in connection with or as security for the Seller Obligations are separate and
cumulative and may be pursued separately, successively or concurrently, or not pursued without affecting, reducing or limiting
any other right of Purchaser and without affecting, reducing, or impairing the liability of Guarantor.

 

12.         Pronouns;
Captions; Severability. The pronouns used in this instrument shall be construed as masculine, feminine or neuter as the occasion
may require. Use of the singular includes the plural, and vice versa. Captions are for reference only and in no way limit the terms
of this Guaranty. Invalidation of any one or more of the provisions of this Guaranty shall in no way affect any of the other provisions
hereof, which shall remain in full force and effect. Use of the term “include” or “including” is always
without limitation. “Person” or “party” means any natural person or artificial entity having legal capacity.

 

13.         Purchaser
Assigns. This Guaranty is intended for and shall inure to the benefit of Purchaser and its successors or assignees, and each
and every reference herein to Purchaser shall include and refer to each and every successor or assignee of Purchaser at any time
holding or owning any part of or interest in any part of the Seller Obligations. Guarantor expressly waives notice of transfer
or assignment, and agrees that the failure of the Purchaser to give notice will not affect the liabilities of Guarantor hereunder.

 

14.         Application
of Payments. Purchaser may apply any payments received by it from any source against that portion of the Seller Obligations
it deems appropriate in such priority and fashion as it may deem appropriate.

 

15.         Notices.
Except as otherwise provided in this Guaranty, all notices or other communications under this Guaranty shall be sent by hand, by
overnight courier, or by registered or certified mail, postage prepaid, to the parties at the following addresses:

 

	to Guarantor:	Capital Health Group, LLC
	 	1422 Clarkview Road
	 	Baltimore, MD 21209
	 	Attention: Mr. Kenneth R. Assiran
	 	 
	 	Facsimile: 410 342 7101 

 

    	 

    	 

    

 

	with copies to:	Drinker Biddle & Reath LLP
	 	 
	 	500 Campus Drive
	 	Florham Park, NJ 07932-1047
	 	Attention:  Michael San Giacomo, Esq.
	 	Facsimile: 973-360-9831
	 	 
	to Purchaser:	Woodbury Mews III, LLC
	 	Woodbury Mews IV, LLC
	 	Woodbury Mews Land Parcels, LLC
	 	Attn: John Mark Ramsey
	 	Attn: Kevin Thomas 
	 	189 S. Orange Avenue, Suite 1700
	 	Orlando, FL 32801
	 	Phone:  407-999-7679
	 	Fax:  407-999-5210
	 	 
	with copies to:	Michael A. Okaty, Esq.
	 	Foley & Lardner LLP
	 	111 N. Orange Avenue, Suite 1800
	 	Orlando, FL 32801
	 	Phone No.:  407-423-7656
	 	Fax No.:  407-648-1743
	 	E-mail:  mokaty@foley.com

 

This section
shall not be construed in any way to affect or impair any waiver of notice or demand herein provided or to require giving of notice
or demand to or upon Guarantor in any situation or for any reason.

 

16.         Governing
Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of New Jersey without regard
to its principles of conflict of laws.

 

17.         Submission
to Jurisdiction. Guarantor irrevocably and unconditionally (a) agrees that any suit, action or other legal proceeding arising
out of or relating to this Guaranty may be brought, at the option of Purchaser, in a court of competent jurisdiction in Gloucester
County, New Jersey or any United States District Court having jurisdiction in Gloucester County, New Jersey; (b) consents to the
jurisdiction of each such court in any such suit, action or proceeding; and (c) waives any and all personal rights under the laws
of any state to object to the laying of venue of any such suit, action or proceeding in Gloucester County, New Jersey.

 

18.         Oral
Modification Ineffective. Any amendment to or modification of this Guaranty, and any waiver of any
provision hereof, shall be in writing and shall require the prior written approval of the Purchaser as evidenced by the handwritten,
non-electronic signature of the Purchaser affixed by the Purchaser to a paper document. This Guaranty shall be irrevocable
by Guarantor until all outstanding Seller Obligations are fully paid or otherwise finally resolved, at which time Purchaser will
promptly terminate this Guaranty. This Guaranty shall continue in full force and effect unless and until discharged or released
by Purchaser pursuant to a written instrument properly executed by the Purchaser.

 

    	 

    	 

    

 

19.         Counterparts.
This Guaranty may be executed in separate counterparts, each of which shall constitute an original and both of which, when taken
together, shall be constituted one Guaranty.

 

20.         Waiver
of Jury Trial. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, OR ANY OTHER
DOCUMENT RELATED TO THIS GUARANTY, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT
TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH
ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. PURCHASER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH
IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, Guarantor has executed this GUARANTY OF AGREEMENT OF SALE as of the day and year first above written.

 

	 	 
	 	 
	 	 

 

STATE OF _____________

COUNTY OF ___________

 

I HEREBY
CERTIFY that on this day before me, an officer duly authorized in the State and County aforesaid to take acknowledgements,
personally appeared ___________________________________ who [___] are personally known to me or [___] produced ______________________________
as identification, and that they acknowledged executing the same, freely and voluntarily, for the uses and purposes therein expressed.

 

WITNESS
my hand and official seal in the County and State last aforesaid this ____ day of ______________, 2013.

 

	 	 
	 	Signature of Notary
	 	 
	 	 
	 	Name of Notary (Typed, Printed or Stamped)
	 	 
	 	Commission Number (if not legible on seal): 	 
	 	My Commission Expires (if not legible on seal):	 

  

    	 

    	 

    

 

EXHIBIT
E

 

FIRPTA
AFFIDAVIT

 

CERTIFICATION
OF NON-FOREIGN STATUS

 

Section
1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor
is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property
interest by _____________________________ (“Seller”), the undersigned hereby certifies the following on behalf
of Seller:

 

		1.	Seller is a “United States Person” and is not a “foreign person” in accordance
with and for the purpose of the provisions of Sections 7701 and 1445 (as may be amended) of the Internal Revenue Code of 1986 (the
“Code”), as amended, and any regulations promulgated thereunder.

 

		2.	Seller’s U. S. Employer Identification Number is [              ].

 

		3.	Seller is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Code.

 

		4.	Seller’s office address is [              ].

 

The
undersigned and Seller understand that this certification may be disclosed to the Internal Revenue Service by transferee
and that any false statement contained herein could be punished by fine, imprisonment, or both.

 

Under
penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true,
correct and complete, and I further declare that I have authority to sign this document on behalf of Seller.

 

Dated:
______________, 20___.

 

[Insert
signature block]

 

Sworn
to and subscribed before me this   day of ________, 2013, in the state and county aforesaid.

 

	 	 
	 	Notary Public
	 	 
	My Commission Expires:	[Notarial Seal]

  

    	 

    	 

    

 

EXHIBIT
F-1

 

FORM
OF ASSIGNMENT OF PROPERTY AGREEMENTS

 

KNOW
ALL MEN that ______________________________ (“Assignor”), in consideration of Ten and 00/100 ($10.00) Dollars and
other good and valuable consideration, received from [______________________] (“Assignee”), does hereby
assign, transfer and deliver onto Assignee, all of its right, title and interest in and to those certain agreements relating to
the operation or maintenance of the premises known as [___________], which agreements are listed in Schedule A annexed hereto
(the “Contracts”).

 

TO
HAVE AND TO HOLD the same unto Assignee, its successors and assigns, forever, from and after the date hereof, subject to the
terms, covenants, conditions and provisions contained in the Contracts and subject aforesaid.

 

AND
Assignee does hereby acknowledge receipt of the Contracts so delivered, and does hereby (a) accept the within assignment and
(b) assume the performance of all the terms, covenants and conditions of the Contracts on the Assignor’s part to be
performed thereunder accruing from and after the date hereof.

 

Except
as expressly set forth in the Agreement of Sale by and between Assignor, ___________ and ____________, dated as of __________,
2013, and subject to the limitations set forth therein, this assignment is made without warranty or representation by the Assignor.

 

This
assignment and assumption agreement shall inure to the benefit of Assignee and Assignor and their respective successors and assigns,
and shall be governed by the laws of the State of New Jersey. This assignment and assumption agreement may not be modified, altered
or amended, or its terms waived, except by an instrument in writing signed by the parties hereto.

 

None
of the provisions of this instrument are intended to be, nor shall they be construed to be, for the benefit of any third party.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, Assignor and Assignee have executed this agreement this _____ day of _______________.

 

	 	ASSIGNOR
	 	 
	 	[INSERT SIGNATURE BLOCK]
	 	 
	 	ASSIGNEE:
	 	 
	 	[INSERT SIGNATURE BLOCK]

 

    	 

    	 

    

 

EXHIBIT
F-2

 

FORM
OF ASSIGNMENT OF TAX SALE CERTIFICATES

 

    	 

    	 

    

 

EXHIBIT
F-3

 

FORM
OF ASSIGNMENT OF CITY AGREEMENT

 

    	 

    	 

    

 

EXHIBIT
F-4

 

FORM
OF ASSIGNMENT OF PILOT AGREEMENT 

 

    	 

    	 

    

 

EXHIBIT
G

 

FORM
OF MANAGEMENT AGREEMENT

 

    	 

    	 

    

 

EXHIBIT
H

 

FORM
OF INTERIM LICENSURE ARRANGEMENTS 

 

    	 

    	 

    

 

EXHIBIT
I

 

SCHEDULE
OF VEHICLES AND EQUIPMENT

 

(See Attached) 

 

    	 

    	 

    

 

EXHIBIT
J

 

RENT
ROLL

 

(See Attached) 

 

    	 

    	 

    

 

EXHIBIT
K

 

EMPLOYEE
CONTRACTS AND MATTERS

 

(See Attached) 

 

    	 

    	 

    

 

EXHIBIT
L

 

FORM
OF ASSIGNMENT OF RESIDENCY

AGREEMENTS AND COMMERCIAL LEASES

 

THIS
ASSIGNMENT AND ASSUMPTION OF RESIDENCY AGREEMENTS AND COMMERCIAL LEASES (this “Assignment Agreement”) is made
and entered into as of this _____ day of __________, 2013 (the “Transfer Date”) by and between ___________________________
(the “Assignor”), and ____________________________ (the “Assignee”). Each party hereto is
referred to individually as a “Party” and collectively as the “Parties.”

 

BACKGROUND:

 

WHEREAS,
the Assignor and Assignee (as successor to _________________) have entered into that Agreement of Sale dated as of _______, 2012
(the “Sale Agreement”), providing for, among other things, the transfer by the Assignor to the Assignee of the
[assisted/independent] living facility identified on Exhibit A hereto (the “Facility”), all upon the
terms and conditions contained in the Settlement Agreement;

 

WHEREAS,
pursuant to the terms of the Sale Agreement, the Assignor shall assign all of its right, title and interest as lessor in and to
all “Residency Agreements” and “Commercial Leases” (as each term is defined in the Sale Agreement); and

 

WHEREAS,
attached hereto (i) as Schedule 1 is a list of all Residency Agreement held by Assignor as of the Transfer Date, and (ii)
as Schedule 2 is a list of all Commercial Leases held by Assignor as of the Transfer Date.

 

NOW,
THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the Parties hereto, the Parties hereto, intending to be bound, hereby agree as follows:

 

1.          Assignment.
Assignor hereby assigns, transfers and conveys all of its right, title and interest in, to, and under the Residency Agreement set
forth on Schedule 1 to Assignee. Assignor hereby assigns, transfers and conveys all of its right, title and interest in,
to, and under the Commercial Leases set forth on Schedule 2 to Assignee. Except as expressly set forth in the Agreement
of Sale by and between Assignor, ___________ and ____________, dated as of __________, 2013, and subject to the limitations set
forth therein, this Assignment is made without warranty or representation by the Assignor

 

2.          Assumption.
Assignee hereby accepts all of the Assignor’s right, title and interest in, to, and under the Residency Agreement and Commercial
Leases, each as set forth on Schedule 1 or Schedule 2, as applicable, and assumes all of the Assignor’s obligations
accruing thereunder from and after the Transfer Date.

 

3.          Miscellaneous.
Capitalized terms used but not defined in this Assignment Agreement have the meaning given to them in the Sale Agreement. Nothing
contained herein is intended to amend, modify or affect the rights and obligations of the Parties under the Sale Agreement. This
Assignment Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, taken together,
shall be considered one and the same instrument. This Assignment Agreement shall be governed by the laws of the State of New Jersey.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have duly executed this Assignment Agreement on
the date first above written.

 

	 	ASSIGNOR:
	 	 
	 	ASSIGNEE:

  

    	 

    	 

    

 

Schedule
1

To

ASSIGNMENT
AGREEMENT

 

Residency
Agreements

 

    	 

    	 

    

 

Schedule
2

To

ASSIGNMENT
AGREEMENT

 

Commercial
Leases 

 

    	 

    	 

    

 

EXHIBIT
M

 

FORM
OF BILL OF SALE AND GENERAL ASSIGNMENT

 

KNOW
ALL MEN that __________________________ (“Assignor”), in consideration of Ten ($10.00) Dollars and other
good and valuable consideration, receipt whereof is hereby acknowledged from ________________________ (“Assignee”),
does hereby assign, transfer and deliver unto Assignee, all of its right, title and interest in and to any and all Personalty and
Intangibles (each as defined in that certain Agreement of Sale by and between Assignor, ___________ and ____________, dated as
of March __, 2013 presently held by Assignor affecting the premises known as _____________________________ (the “Premises”).

 

TO
HAVE AND TO HOLD the same unto Assignee, its successors and assigns, forever, from and after the date hereof.

 

Except
as expressly set forth in the Agreement of Sale by and between Assignor, ___________ and ____________, dated as of __________,
2013, and subject to the limitations set forth therein, this assignment is made without warranty or representation by the Assignor,
including, without limitation, any warranty or representation that Assignor has any right in the Personalty and Intangibles or
that the Personalty and Intangibles are transferable, and without recourse to Assignor in any manner whatsoever.

 

This
assignment agreement shall inure to the benefit of Assignee and its successors and assigns and shall be governed by the laws of
the State of New Jersey. This assignment agreement may not be modified, altered or amended, or its terms waived, except by an instrument
in writing signed by the parties hereto.

 

None
of the provisions of this instrument are intended to be, nor shall they be construed to be, for the benefit of any third party.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, Assignor has executed this agreement this _____ day of ___________, 2013.

 

ASSIGNOR:

 

ASSIGNEE: 

 

    	 

    	 

    

 

EXHIBIT
N

 

FORM
OF AUDIT LETTER

 

[DATE]

 

[ACCOUNTING FIRM]

[ADDRESS]

 

Ladies and Gentlemen:

 

We are providing
this letter in connection with your audit of the balance sheet(s) of the [PROPERTY OR PORTFOLIO] (“the Property”) as
of [REPORTING PERIODS] and the related combined statements of operations, owners’ equity, and cash flows for the years then
ended, for the purpose of expressing an opinion as to whether these financial statements present fairly, in all material respects,
the financial position, and results of operations of the Property in conformity with U.S. generally accepted accounting principles.

 

Certain
representations in this letter are described as being limited to matters that are material. Items are considered material, regardless
of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances,
makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission
or misstatement.

 

We confirm,
to the best of our knowledge and belief, the following representations made to you during your audit:

 

1.          The
financial statements referred to above are fairly presented in conformity with U.S. generally accepted accounting principles.

 

2.          We
have made available to you:

 

		a.	All financial records and related data.

 

		b.	All minutes of the meetings of boards, or summaries of actions of recent meetings for which minutes
have not yet been prepared.

 

3.          There
are no:

 

		a.	Violations or possible violations of laws or regulations, whose effects should be considered for
disclosure in the combined financial statements or as a basis for recording a loss contingency.

 

		b.	We are not aware of any pending or threatened litigation, claims, or
assessments or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance
with FASB ASC 450, Contingencies, and we have not consulted a lawyer concerning litigation,
claims, or assessments.

 

		c.	Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by
FASB ASC 450, Contingencies.

 

		d.	Material transactions that have not been properly recorded in the accounting records underlying
the financial statements.

 

    	 

    	 

    

 

		e.	Events that have occurred subsequent to the balance sheet date and through the date of this letter
that would require adjustment to or disclosure in the financial statements, except as disclosed.

 

4.          There
are no uncorrected financial statement misstatements.

 

5.          We
acknowledge our responsibility for the design and implementation of programs and controls to prevent, deter and detect fraud. We
understand that the term "fraud" includes misstatements arising from fraudulent financial reporting and misstatements
arising from misappropriation of assets.

 

6.          We
have no knowledge of any fraud or suspected fraud affecting the entity involving:

 

		a.	Management

 

		b.	Employees who have significant roles in internal control
over financial reporting, or

 

		c.	Others where the fraud could have a material effect on
the financial statements.

 

7.          We
have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees,
former employees, analysts, regulators, short sellers, or others.

 

8.          The
Property has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

 

9.          We
have no knowledge of any officer or trustee of the Property, or any other person acting under the direction thereof, having taken
any action to fraudulently influence, coerce, manipulate or mislead you during your audit.

 

10.         The
following have been properly recorded or disclosed in the financial statements:

 

		a.	Related party transactions including sales, purchases, loans, transfers, leasing arrangements,
guarantees, ongoing contractual commitments and amounts receivable from or payable to related parties.

 

			The term "related party" refers to affiliates of the enterprise; entities for which investments
in their equity securities would, absent the election of the fair value option under FASB ASC 825, Financial Instruments,
be required to be accounted for by the equity method by the enterprise; trusts for the benefit of employees, such as pension and
profit-sharing trusts that are managed by or under the trusteeship of management; principal owners of the enterprise; its management;
members of the immediate families of principal owners of the enterprise and its management; and other parties with which the enterprise
may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that
one of the transacting parties might be prevented from fully pursuing its own separate interests. Another party also is a related
party if it can significantly influence the management or operating policies of the transacting parties or if it has an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests.

 

		b.	Guarantees, whether written or oral, under which the Property is contingently liable, including
guarantee contracts and indemnification agreements pursuant to FASB ASC 460, Guarantees.

 

		c.	Significant estimates and material concentrations known to management that are required to be disclosed
in accordance with FASB ASC 275, Risks and Uncertainties.

 

    	 

    	 

    

 

Significant
estimates are estimates at the balance sheet date, which could change materially within the next year. Concentrations refer to
volumes of business, revenues, available sources of supply, or markets or geographic areas for which it is reasonably possible
that events could occur which would significantly disrupt normal finances within the next year.

 

		d.	Significant common ownership or management control relationships requiring disclosure.

 

11.         The
Property has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets, nor has any asset been
pledged as collateral, except as disclosed.

 

12.         The
Property has complied with all aspects of contractual agreements that would have a material effect on the combined financial statements
in the event of noncompliance.

 

13.         There
have been no:

 

		a.	Instances of fraud involving others that could have a material effect on the adjustments.

 

		b.	Allegations, either written or oral, of misstatements or other misapplication of accounting principles
in the Property’s adjustments that have not been disclosed to you in writing.

 

		c.	Allegations, either written or oral, of deficiencies in internal control that could have a material
effect on the Property’s adjustments that have not been disclosed to you in writing.

 

		d.	False statements affecting the Property’s adjustments made to you, our internal auditors,
or other auditors who have audited entities under our control upon whose work you may be relying in connection with your audit.

 

14.         There
are no material transactions that have not been properly recorded in the accounting records underlying the adjustments.

 

15.         Receivables
reported in the combined financial statements represent valid claims against debtors for sales or other charges arising on or before
the balance sheet date and have been appropriately reduced to their estimated net realizable value.

 

16.         The
Portfolio has appropriately grouped long-lived assets together for purposes of assessing impairment in accordance with FASB ASC
360, Property, Plant and Equipment. We have reviewed long-lived assets, including amortizable intangible assets, to be held
and used, for impairment whenever events or changes in circumstances have indicated that the carrying amount of the assets might
not be recoverable. Provision has been made for any material adjustments to long-lived assets including amortizable intangible
assets.

 

17.         We
are responsible for making the fair value measurements and disclosures included in the combined financial statements in accordance
with FASB ASC 820, Fair Value Measurement and Disclosures, including determining the fair value of assets and liabilities
for which there has been a significant decrease in the volume and level of activity in relation to the normal market activity for
those assets or liabilities (or similar assets or liabilities) or for which transactions are deemed not orderly. As part of fulfilling
this responsibility, we have established an accounting and financial reporting process for determining the fair value measurements
and disclosures, in accordance with the fair value techniques included in FASB ASC 820, considered the appropriateness of valuation
techniques, adequately supported any significant assumptions used, and ensured that the presentation and disclosure of the fair
value measurements are in accordance with U.S. generally accepted accounting principles including the disclosure requirements of
FASB ASC 820. We believe the assumptions and techniques used by us, including those used by specialists engaged by us, are in accordance
with the definition of fair value in FASB ASC 820 and the disclosures adequately describe the level of the inputs used in the fair
value measurement, in accordance with the fair value hierarchy in FASB ASC 820. 

 

    	 

    	 

    

 

18.         The
Portfolio is responsible for determining the fair value of financial instruments as required by FASB ASC 825, Financial Instruments.
The amounts disclosed represent the Portfolio’s best estimate of fair value of financial instruments required to be disclosed
under the FASB ASC 825. The Portfolio also has disclosed the methods and significant assumptions used to estimate the fair value
of financial instruments and any changes to those methods and significant assumptions, if any, as required by FASB ASC 825.

 

19.         Uncertain
tax positions have been accounted for in accordance with the provisions of FASB ASC 740, Income Taxes.

 

Further,
we confirm that we are responsible for the fair presentation in the financial statements of financial position, results of operations,
and cash flows in conformity with U.S. generally accepted accounting principles.

 

Very truly yours,

 

[SELLER]

 

	 	 
	[NAME]	 
	[TITLE]	 

 

    	 

    	 

    

 

EXHIBIT
O

 

BULK SALES
TAX ESCROW AGREEMENT

 

THIS
ESCROW AGREEMENT (this “Agreement”) is made as of _________ by and among [___________], a [____________],
having an address at [___________________] (“Escrow Agent”), [_________], a [____________], having an
address at [__________] (“Seller”) and [___________], a [______________], having an address at [_________________]
(“Purchaser”).

 

PRELIMINARY
STATEMENT

 

Seller
and Purchaser are parties to that certain Agreement of Sale, dated [________] (the “Contract”), relating to
certain real property known and located at [________________].

 

Section
[__] of the Contract provides that simultaneously with the conveyance of the Property to Purchaser, Purchaser shall post an escrow
(the “Tax Escrow”) required by the New Jersey Division of Taxation (the “Division”) on Seller’s
behalf. This Agreement shall govern the terms of such escrow and the disbursement of amounts from such escrow.

 

Capitalized
terms used in this Agreement, which are not defined in this Agreement, shall have the meanings given to such terms in the Contract.

 

NOW,
THEREFORE, for and in consideration of the premises, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.          Tax
Escrow Funds. Simultaneously herewith, Purchaser has deposited the sum of $[___________], which amount has been withheld from
the Purchase Price, to be held by Escrow Agent as the Tax Escrow, in accordance with the provisions hereof. [Simultaneously herewith,
Seller has deposited the sum of $[___________], which amount represents the difference between the amount of the Deficiency and
the Purchase Price, to be held by Escrow Agent as the Tax Escrow, in accordance with the provisions hereof.] Escrow Agent shall
hold the Escrowed Sums (as hereinafter defined) in an interest bearing trust account at [INSERT an FDIC insured banking institution
authorized to do business in New Jersey, with offices located in New Jersey, which is acceptable to Seller and Purchaser]. As used
herein, the term “Escrowed Sums” shall mean the amount of the initial deposit hereunder, as increased by any
interest earned thereon and as decreased by any sums which have been disbursed from escrow in accordance with the terms hereof.

 

2.          Payment
to Division of Taxation. Within five (5) days after receipt from the Division, Seller or Purchaser, as the case may be, shall
forward to Escrow Agent and the other party hereunder a copy of any written instructions of the Division regarding the disbursement
of Escrowed Sums (“Disbursement Instructions”). No sooner than five (5) days after receipt, Escrow Agent shall
disburse all or a portion of the Escrowed Sums in accordance with such Disbursements Instructions.

 

    	 

    	 

    

 

3.          Release
of Funds to Seller. Within five (5) days after receipt from the Division, Seller or Purchaser, as the case may be, shall forward
to Escrow Agent and the other party hereunder a copy of any written confirmation (“Release Authorization”) from
the Division that the Deficiency has been paid in full or that Purchaser has no further liability for the Deficiency. Upon receipt
of such Release Authorization, Escrow Agent shall release to Seller any Escrowed Sums which remain in escrow (and which the Division
has not required to be paid to the Division pursuant to any Disbursement Instructions or Release Authorization); provided, however,
that Escrow Agent shall not release any Escrowed Sums to Seller until at least ten (10) days after Escrow Agent receives the Release
Authorization, nor thereafter if Escrow Agent shall have received written notice of objection from Purchaser within such ten (10)
day period.

 

4.          Objection
to Disbursement. If Escrow Agent shall receive any objection from Purchaser to the release of any Escrowed Sums to Seller pursuant
to Paragraph 3, then Escrow Agent shall release any undisputed amount and shall continue to hold the disputed amount in
escrow under the terms and conditions hereof, until the earlier of (a) receipt by Escrow Agent of joint instructions signed
by Seller and Purchaser regarding the release or disbursement of the disputed sums, or (b) receipt by Escrow Agent of a final,
unappealable judgment, order or decree from a court of competent jurisdiction instructing Escrow Agent as to release and/or disbursement
of the disputed sum.

 

5.          Reliance;
Duties. Escrow Agent may act in reliance on any writing or instrument or signature which it believes to be genuine, and may
assume the validity and accuracy of any statement or assertion contained in such a writing or instrument and may assume that any
person purporting to give any writing, notice, advice or instruction in connection with the provisions hereof has been duly authorized
to do so.

 

6.          Dispute.
In the event of any dispute between the parties regarding the Escrowed Sums, Escrow Agent, at its option, may disregard all instructions
received and either (i) hold the Escrowed Sums until the dispute is mutually resolved and Escrow Agent is advised of this fact
in writing by both Seller and Purchaser, or Escrow Agent is otherwise instructed by a final unappealable judgment of a court of
competent jurisdiction, or (ii) deposit the Escrowed Sums into a court of competent jurisdiction (whereupon Escrow Agent shall
be released and relieved of any and all liability and obligations hereunder from and after the date of such deposit).

 

7.          Uncertainty.
In the event Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive conflicting instructions, claims
or demands from the parties hereto, or instructions which conflict with any of the provisions of this Agreement or the Contract,
Escrow Agent shall be entitled (but not obligated) to refrain from taking any action other than to keep safely the Escrowed Sums
until Escrow Agent shall be instructed otherwise in writing signed by both Seller and Purchaser, or by final judgment of a court
of competent jurisdiction.

 

8.          Indemnity.
Seller and Purchaser shall jointly and severally hold Escrow Agent harmless against any loss, damage, liability or expense incurred
by Escrow Agent, arising out of or in connection with its entering into this Agreement and the carrying out of its duties hereunder,
including the reasonable costs and expenses of defending itself against any claim of liability or participating in any legal proceeding.
Escrow Agent may consult with counsel of its choice, and shall have full and complete authorization and protection for any action
taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel.

 

    	 

    	 

    

 

9.          Resignation.
Escrow Agent may resign at will and be discharged from its duties or obligations hereunder by giving notice in writing of such
resignation specifying a date when such resignation shall take effect; provided, however, that (i) prior to the effective date
of such resignation a substitute escrow agent is approved in writing by Seller and Purchaser, which approval shall not be unreasonably
withheld or delayed, or (ii) Escrow Agent shall deposit the Escrowed Sums with a court of competent jurisdiction. After such resignation,
Escrow Agent shall have no further duties or liability hereunder.

 

10.         Termination.
Purchaser and Seller, together, shall have the right to terminate the appointment of Escrow Agent hereunder by giving to it notice
of such termination, specifying the date upon which such termination shall take effect and designating a replacement Escrow Agent,
who shall sign a counterpart of this Agreement. Upon demand of such successor Escrow Agent, the Escrowed Sums shall be turned over
and delivered to such successor Escrow Agent, who shall thereupon be bound by all of the provisions hereof. Escrow Agent’s
agreements and obligations hereunder shall terminate and Escrow Agent shall be discharged from further duties and obligations hereunder
upon final payment of the Escrowed Sums in accordance with the terms of this Agreement.

 

11.         Continued
Representation of a Party. Notwithstanding that Escrow Agent is acting as an escrow agent for the Escrowed Sums, and, further,
notwithstanding any subsequent dispute which may arise between the parties related to this Agreement, the Contract, the Escrowed
Sums or otherwise, if Escrow Agent is legal counsel to a party hereunder, each party agrees that Escrow Agent may continue to represent
such party as legal counsel in connection with this Agreement, the Contract and the transactions contemplated hereby or thereby
and/or with respect to any dispute or litigation arising out of the Contract or this Agreement.

 

12.         Entire
Agreement. This Agreement embodies the entire understanding and agreement of the parties to this Agreement concerning Escrow
Agent’s obligations, and supersedes all prior and contemporaneous agreements, understandings, negotiations, offers and expressions
of intent, whether oral or written. None of the terms and conditions of this Agreement may be modified except by a writing, signed
by Seller, Purchaser and Escrow Agent. In the event of any inconsistency between this Agreement and the Contract, the terms of
this Agreement shall control.

 

13.         Binding
Effect. This Agreement shall be binding upon and inure to the benefit of Seller, Purchaser and Escrow Agent and their respective
successors in interest.

 

14.         Notices.
Any demand, notice or other communication required or permitted to be given hereunder shall be in writing, and shall be delivered
personally, by recognized overnight national courier service (such as Federal Express) for next business day delivery, by telecopy
(with a hard copy and a transmission confirmation sent by a recognized overnight national courier service), or by certified mail,
return receipt requested, first-class postage prepaid to the parties at the addresses set forth below (or to such other addresses
as the parties may specify by due notice to the other):

 

    	 

    	 

    

 

To
Purchaser:

 

	 	 	 
	 	 	 
	 	 	 

 

copy
to:

 

	 	 	 
	 	 	 
	 	 	 

 

To
Seller:

 

	 	 	 
	 	 	 
	 	 	 

 

copy
to:

 

	 	 	 
	 	 	 
	 	 	 

 

To
Escrow Agent:

 

	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

Any notice
delivered to a party’s designated address by (a) personal delivery, (b) recognized overnight national courier service, or
(c) certified mail, return receipt requested, shall be deemed to have been received by such party at the time the notice is delivered
to such party. Any notice sent by fax to the party’s designated fax number shall be effective upon receipt, provided receipt
occurs before 5:00 PM on a business day in the State of New Jersey. Confirmation by the courier delivering any notice given pursuant
to this Paragraph 14 shall be conclusive evidence of receipt of such notice. Each party hereby agrees that it will not refuse
or reject delivery of any notice given hereunder, that it will acknowledge, in writing, receipt of the same upon request by any
other party and that any notice rejected or refused by it shall be deemed for all purposes of this Agreement to have been received
by the rejecting party on the date so refused or rejected, as conclusively established by the records of the U.S. Postal Service
or the courier service. Any notice given by an attorney for a party shall be effective for all purposes.

 

15.         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey.

 

16.         Section
Headings. The respective section and subsection headings contained in this Agreement are for convenience of reference only,
and shall not be deemed to modify, limit, define or describe in any respect any of the provisions of this Agreement.

 

17.         Execution
in Counterparts. This Agreement may be executed in several counterparts, all of which when taken together shall constitute
a single Agreement.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date of this Agreement.

 

	 	ESCROW AGENT:
	 	 
	 	[_____________]
	 	 	 
	 	By: 	 
	 		Name:
	 		Title:
	 	 	 
	 	SELLER:
	 	 
	 	[______________]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	PURCHASER:
	 	 
	 	[________________]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

EXHIBIT
P

 

INCOME
SUPPORT AGREEMENT

 

    	 

    	 

    

 

SCHEDULE
1

 

Retained
Computer Software

 

    	 

    	 

    

 

SCHEDULE
2

 

Property
Agreements

 

    	 

    	 

    

 

SCHEDULE
3

 

Environmental
Reports

 

    	 

    	 

    

 

SCHEDULE
4

 

Exclusions
to Noncompete

 

    	 

    	 

    

 

SCHEDULE
5

 

Property
of Existing Manager

 

    	 

    	 

    

 

SCHEDULE
6

 

Insurance

 

    	 

    	 

    

 

SCHEDULE
7

 

Licenses

 

    	 

    	 

    

 

SCHEDULE
8

 

Litigation

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]