Document:

EX-10.1

 Exhibit 10.1 
 CONFIDENTIAL TREATMENT REQUESTED BY INSITE VISION INCORPORATED— 
 CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND 
 HAVE BEEN SEPARATELY FILED WITH THE COMMISSION 

SECOND AMENDMENT TO LICENSE AGREEMENT 
 This SECOND AMENDMENT TO LICENSE AGREEMENT (the “Second Amendment”) is made and effective as of June 13, 2013 (the “Second Amendment Effective Date”), by and between
Inspire Pharmaceuticals, Inc., a Delaware corporation having its principal place of business at One Merck Drive, Whitehouse Station, NJ 08889 (“Inspire”), and InSite Vision Incorporated, a Delaware corporation having its principal
office at 965 Atlantic Ave., Alameda, CA 94501 (“InSite”). Inspire and InSite are each referred to herein as a “Party” and collectively as the “Parties”. 

BACKGROUND 
 A. WHEREAS, Inspire and InSite entered into that certain License Agreement, dated as of February 15, 2007 (the “Agreement”); and 

B. WHEREAS, the Agreement was amended by that certain First Amendment to License Agreement effective as of August 9, 2012; and

 C. WHEREAS, Inspire and InSite now desire to again amend the Agreement to grant InSite certain rights to develop a particular
Subject Product and to grant Inspire an exclusive option with respect to the results of such development; 
 NOW, THEREFORE, in
consideration of the foregoing and the covenants and premises contained herein, the Parties therefore agree as follows: 

ARTICLE 1 

AMENDMENT OF AGREEMENT 
 The Parties hereby amend the Agreement as provided below, effective as of the Second Amendment Effective Date: 
 1.1 Amendment of Section 1.100. Section 1.100 of the Agreement is hereby deleted in its entirety and replaced with the following: 

“1.100 “Subject Product” means any topical anti-infective product for human ocular or ophthalmic indications, in
any dosage strength or size, for any mode of ocular or ophthalmic administration, containing as the sole active ingredient the chemical compound known as azithromycin or any salts, esters or hydrates thereof; provided, however, that,
unless and until Inspire exercises the AzaSite Xtra Option pursuant to Section 2.12(h)(ii) below, Subject Product does not include AzaSite Xtra.” 

  
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 1.2 Addition of New Definitions. The following defined terms are hereby added
to Article 1 of the Agreement: 
 “AzaSite Xtra” means any topical anti-infective product for human ocular or
ophthalmic indications, in any size, for any mode of ocular or ophthalmic administration, containing as the sole active ingredient two percent (2%) by weight of the chemical compound known as azithromycin or any salts, esters or hydrates
thereof. 
 “AzaSite Xtra Development Expenses” means all of InSite’s direct and indirect costs and
expenses actually incurred in connection with the pre-clinical and clinical development of AzaSite Xtra, as set forth in the budget attached to the AzaSite Xtra Development Plan (as defined in Section 2.12(a)(i)) and as evidenced by original
records and summaries prepared in accordance with United States generally accepted accounting principles; provided that AzaSite Xtra Development Expenses shall not include any costs or expenses related to activities related to obtaining
Regulatory Approval for AzaSite Xtra outside the Territory. AzaSite Xtra Development Expenses shall include, without limitation, a reasonable allocation of overhead, costs and expenses related to non-executive employees of InSite involved in the
development of AzaSite Xtra for the Territory, as well as costs and expenses related to preclinical development, clinical development, manufacturing of clinical drug supply and clinical comparator drug supply, and regulatory preparation and filing,
in each case for the Territory, and all third party costs and expenses actually incurred in connection with the foregoing, all as set forth in the budget attached to the AzaSite Xtra Development Plan. 

“AzaSite Xtra Option Period” means the period commencing on the Second Amendment Effective Date and ending on the
earlier of (i) 5:00 pm Eastern Standard or Daylight Time (as applicable) on the date that is ten (10) Business Days following the first Regulatory Approval of AzaSite Xtra in the United States, (ii) Inspire’s exercise of the
AzaSite Xtra Option pursuant to Section 2.12(h)(ii) below or (iii) termination or expiration of the Agreement. 

“NDA/NDS” means an NDA or its equivalent in Canada.” 

1.3 Amendment of Section 2.1(d). The following new subsection (vi) is hereby added to Section 2.1 (d) of the
Agreement: 
 “and (vi) subject to Inspire’s exercise of the AzaSite Xtra Option pursuant to
Section 2.12(h)(ii) below, InSite has the right to develop and commercialize AzaSite Xtra in the Territory.” 
 1.4
AzaSite Xtra Development and Buy-Back Option. The following new Section 2.12 is hereby added to the Agreement: 
 “2.12 AzaSite Xtra Development and Buy-Back Option. 
 (a) AzaSite
Xtra Steering Committee. Within thirty (30) days after the Second Amendment Effective Date, the Parties will establish a committee to manage their interactions regarding the development by InSite of AzaSite Xtra during the AzaSite Xtra
Option Period (the “AzaSite Xtra Steering Committee”), including: 
  

	 	(i)	the sharing of semi-annual written updates to the development plan for AzaSite Xtra, an initial draft of which is attached hereto as 

 
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Exhibit 1 (as updated from time to time by InSite and provided to Inspire, the “AzaSite Xtra Development Plan”), as well as the budgeted and actual AzaSite Xtra Development
Expenses; 

  

	 	(ii)	providing a forum for Inspire to provide input (at Inspire’s sole discretion) to InSite into proposed changes to the AzaSite Xtra Development Plan, regulatory
strategies, filings, interactions with the Regulatory Authorities in the Territory, and product labeling; 

  

	 	(iii)	Inspire’s participation, at Inspire’s sole option, in any meetings with the Regulatory Authorities in the Territory, throughout the development of AzaSite
Xtra and during the review of the NDA/NDS; 

  

	 	(iv)	the provision of clinical, non-clinical, regulatory and other information by InSite to Inspire following NDA/NDS filing to enable Inspire to evaluate whether to
exercise the AzaSite Xtra Option (as defined below); 

  

	 	(v)	the coordination of information exchange pursuant to Sections 2.12(e)(i) and 2.12(h)(i); and 

 

	 	(vi)	addressing any other operational issues that arise related to development of the AzaSite Xtra by InSite. 

(b) AzaSite Xtra Steering Committee Composition and Meetings. 

 

	 	(i)	The AzaSite Xtra Steering Committee will be comprised of equal numbers of representatives of each Party, with each Party appointing two (2) representatives as
members. The AzaSite Xtra Steering Committee may change its size from time to time by mutual consent of its members. Each Party may replace its Steering Committee representatives at any time upon written notice to the other Party.

  

	 	(ii)	The AzaSite Xtra Steering Committee will meet, either in person or by telephone, no less frequently than once every six (6) months, unless otherwise agreed by the
Parties. The members of the AzaSite Xtra Steering Committee may also convene or be consulted from time to time by means of telecommunications, videoconferences, electronic mail or correspondence, as deemed necessary or appropriate. Meetings of the
AzaSite Xtra Steering Committee that are held in person will be held in such location as the Parties may agree. Each Party shall be responsible for the travel and other costs and expenses related to its respective representatives’ participation
in AzaSite Xtra Steering Committee activities. 

  
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 (c) AzaSite Xtra Steering Committee Decisions. The AzaSite Xtra Steering Committee
will strive to reach consensus on any determinations with respect to development and regulatory matters related to AzaSite Xtra in the Territory; provided, however, that InSite shall have final decision-making authority with respect to
the development of and regulatory strategy for AzaSite Xtra in the Territory unless and until Inspire exercises the AzaSite Xtra Option pursuant to Section 2.12(h)(ii). 
 (d) AzaSite Xtra Steering Committee Authority. The AzaSite Xtra Steering Committee will have only such purposes as are specifically set forth herein, and will have no power to amend or interpret
the Agreement or waive a Party’s rights or obligations under the Agreement. 
 (e) InSite Obligations.
Notwithstanding the formation of the AzaSite Xtra Steering Committee, the development of AzaSite Xtra shall be at the sole and absolute discretion of InSite and InSite shall be solely responsible for all filings and interactions with Regulatory
Authorities in the Territory; provided, however, that InSite shall: 
  

	 	(i)	provide Inspire with a written update on the status of its activities pursuant to the AzaSite Xtra Development Plan and of the AzaSite Xtra Development Expenses at
least twice per calendar year; 

  

	 	(ii)	develop AzaSite Xtra pursuant to an IND (and/or its equivalent in Canada) to be initially filed and maintained by InSite unless Inspire exercises the AzaSite Xtra
Option; 

  

	 	(iii)	permit, at Inspire’s sole option, Inspire’s participation in an observer capacity in all meetings with the Regulatory Authorities in the Territory;

  

	 	(iv)	keep complete and accurate records of all AzaSite Xtra Development Expenses in a manner consistent with United States generally accepted accounting principles; and

  

	 	(v)	in the event that “AzaSite Xtra” is not acceptable to the applicable Regulatory Authorities as the trademark for AzaSite Xtra, discuss, and agree with Inspire
on, an alternative trademark strategy for AzaSite Xtra in the Territory. 

 Furthermore, without limiting the
Parties’ obligations under Section 3.6, InSite agrees throughout the Term to notify Inspire within five (5) calendar days, in English, of any information of which InSite becomes aware concerning any side effect, injury, toxicity or
sensitivity reaction, or any unexpected incident, and the severity thereof, whether or not determined to be attributable to AzaSite Xtra or any Subject Product (hereinafter “Adverse Experience”), where such Adverse Experience is
(i) serious and associated with the clinical uses, studies, investigations, tests and marketing of AzaSite Xtra or any Subject Product (to the extent performed by or the responsibility of InSite), whether or not determined to be attributable to
AzaSite Xtra or any Subject Product. With respect to all other adverse experiences (non- 
  
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serious expected or non-serious unexpected adverse experiences), InSite shall furnish Inspire with copies of such non-serious adverse experiences reported to InSite in connection with the
marketing of AzaSite Xtra or any Subject Product, in English, within ten (10) calendar days after receipt. “Serious”, as used in this Section, refers to an experience which results in death, is immediately life threatening,
results in persistent and significant disability/incapacity or requires in-patient hospitalization, or prolongation of existing hospitalization, or is a congenital anomaly, cancer or an overdose. Other important medical events that may jeopardize
the patient or may require intervention to prevent one of the outcomes previously listed should also be considered serious. “Unexpected”, as used in this Section, refers to a condition or development not listed in the current
labeling or investigator’s brochure for the applicable product, and includes an event that may be symptomatically and pathophysiologically related to an event listed in the labeling, but differs from the event because of increased frequency or
greater severity or specificity. 
 With respect to clinical trials being carried out by or on behalf of InSite with respect to
AzaSite Xtra or any Subject Product, adverse experience reports of fatal or life threatening events must be forwarded to Inspire within three (3) calendar days after receipt of the information. 

It is understood and agreed that these adverse experience reporting requirement provisions are based on the policies and procedures of
Inspire and regulatory reporting requirements. In the event of changes to regulatory requirements for adverse experience reporting, Inspire shall promptly notify InSite of any such changes and InSite agrees to use commercially reasonable efforts to
comply with any such reasonably required revised notification requirements applicable to Inspire and other parties generally subject to the Inspire procedures. 
 Within ninety (90) days following the Second Amendment Effective Date (or such shorter period of time as may be necessary to ensure compliance with applicable Regulatory Authority guidelines and
regulations), the Parties shall discuss and execute a Pharmacovigilance Agreement to set forth the responsibilities of each Party with respect to pharmacovigilance matters relating to AzaSite Xtra. 

(f) Right of Reference. Inspire, to the extent it has the right to do so, hereby grants, and Inspire shall procure that its
Affiliates grant, to InSite a “Right of Reference or Use”, as that term is defined in 21 C.F.R.§ 314.3(b), and any foreign equivalents, for AzaSite Xtra only, to any and all regulatory filings, data and information relating to Subject
Products developed, manufactured or commercialized by Inspire, in the Field in the Territory, including without limitation that related to pharmacology, toxicology, preclinical testing, clinical testing, chemistry, manufacturing and controls data,
batch records, trials and studies, safety and efficacy, manufacturing information, analytical and quality control, including without limitation the data and information listed on Schedule 3.1(c), and agrees to sign, and cause its Affiliates to sign,
any instruments reasonably requested by InSite in order to effect such grant. 
 (g) AzaSite Xtra Option Grant. InSite
hereby grants Inspire the exclusive option, but not the obligation, during the AzaSite Xtra Option Period, to acquire the exclusive right to develop and commercialize AzaSite Xtra in the Territory, subject to the terms and conditions set forth in
this Agreement (the “AzaSite Xtra Option”). 
  
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 (h) Option Exercise Mechanics. 

 

	 	(i)	Review of Development Information. InSite shall provide written notice to Inspire that the NDA/NDS for AzaSite Xtra has been accepted for filing and review by
the applicable Regulatory Authority (“NDA/NDS Acceptance”) within ten (10) Business Days of receiving notice of such acceptance. Commencing on NDA/NDS Acceptance and until expiration or termination of the AzaSite Xtra Option
Period, Inspire shall have the ongoing non-exclusive right to review the Regulatory Dossier related to AzaSite Xtra, including but not limited to the NDA filing, all non-NDA CMC non-clinical and clinical data, all ongoing and planned clinical
protocols, all regulatory correspondence, meeting minutes, and CMC-related documents and records and such other information available to InSite relating to AzaSite Xtra that Inspire may reasonably request (collectively the “AzaSite Xtra
Development Information”), as well as a comprehensive, up-to-date accounting of all AzaSite Xtra Development Expenses. For the avoidance of doubt, InSite shall
be free to share the AzaSite Xtra Development Information with Third Parties during Inspire’s non-exclusive data review period, including the NDA filing, ongoing protocols, program costs, and any data that has been publicly disclosed, but shall
not otherwise disclose or publish the AzaSite Xtra Development Information during the AzaSite Xtra Option Period without Inspire’s prior written consent. 

 

	 	(ii)	Inspire Determination of Exercise. Inspire may, at any time during the AzaSite Xtra Option Period, (A) exercise the AzaSite Xtra Option by delivering to
InSite a notice of Inspire’s election to exercise the AzaSite Xtra Option (the “Notice of Exercise”), or (B) deliver to InSite a notice that Inspire has elected not to exercise the AzaSite Xtra Option (such notice, a
“Non-Exercise Notice”). If Inspire fails to deliver a Notice of Exercise prior to the expiration of the AzaSite Xtra Option Period, Inspire shall be deemed to have elected to deliver a Non-Exercise Notice. 

 

	 	(iii)	Effect of Exercise. If Inspire delivers a Notice of Exercise to InSite during the AzaSite Xtra Option Period, (i) subject to InSite’s receipt of the
payment specified in this Section 2.12.(h)(iii), AzaSite Xtra shall be deemed a Subject Product, (ii) InSite shall deliver to Inspire a detailed accounting of all AzaSite Xtra Development Expenses within ten (10) Business Days
following InSite’s receipt of the Notice of Exercise, and (iii) Inspire shall pay to InSite a one-time payment equal to the lesser of ***. Following its exercise of the AzaSite Xtra Option, Inspire shall pay InSite the following
royalties on Net Sales of AzaSite Xtra in the Territory: (i) for so long as InSite remains obligated to make payments to 

  

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debt holders under the Senior Secured Notes (or any notes issued in exchange for the Senior Secured Notes), where such payments are related to royalty payment obligations pursuant to the
Agreement, Inspire shall pay InSite royalties on Net Sales of AzaSite Xtra as contemplated in Article 5 of the Agreement; and (ii) in the event that InSite is no longer under such obligations to such debt holders under the Senior Secured Notes
(or any notes issued in exchange for the Senior Secured Notes), InSite agrees to negotiate in good faith, during the AzaSite Xtra Option Period, a separate royalty buy-down agreement with Inspire with respect to AzaSite Xtra; provided that any
modification to royalty payment obligations with respect to AzaSite Xtra shall be subject to the agreement of the Parties to a separate amendment to the Agreement. 

 

	 	(iv)	Transfer of Regulatory Dossier Upon Exercise. Within twenty-five (25) days after Inspire delivers a Notice of
Exercise to InSite during the AzaSite Xtra Option Period and makes the payment required pursuant to Section 2.12(h)(iii), InSite shall transfer the Regulatory Dossier for AzaSite Xtra in the Territory (including but not limited to the IND/any
CTAs, NDA/NDS) along with any and all supporting documentation to Inspire. InSite shall also submit to the applicable Regulatory Authorities in the Territory a written request to transfer to Inspire sole ownership of the entire Regulatory Dossier
for AzaSite Xtra in the Territory. InSite shall execute and deliver to the applicable Regulatory Authorities such documents as are required to transfer such NDA and IND, and any foreign equivalents thereto in the Territory, to Inspire. In addition,
InSite shall promptly execute any and all other instruments, forms of assignment or other documents, and take such further actions, as Inspire may reasonably request in order to give effect to or evidence the foregoing transfers. All of the
foregoing shall be carried out at no additional charge to Inspire. InSite shall retain the right to use any and all information in the Regulatory Dossier assigned to Inspire solely for purposes relating to InSite’s exercise of rights retained
by it under Section 2.1 (d) or otherwise not granted to Inspire under this Agreement. 

From and after the transfer of the Regulatory Dossier related to AzaSite Xtra in any country in the Territory as provided
above, Inspire shall have exclusive control over, and authority and responsibility for, the regulatory strategies relating to the further development and commercialization of AzaSite Xtra in such country in the Field, including, without limitation:

  

	 	(A)	the preparation of all documents submitted to Regulatory Authorities and the filing of all submissions relating to Regulatory Approval of AzaSite Xtra in such country;
and 

  
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	 	(B)	all regulatory actions, communications and meetings with any Regulatory Authority with respect to AzaSite Xtra in such country. 

Inspire shall make available to InSite on a reasonable basis any documents not included in the Regulatory Dossier, and amendments or
supplements thereto, for the Subject Products in such country that InSite is required by applicable law to reference in connection with seeking Regulatory Approval of AzaSite Xtra outside the Territory, provided that InSite requests such access in
writing and identifies such applicable law in such request. In addition, Inspire shall consider in good faith any other reasonable request by InSite for access to information in the Regulatory Dossier for the Subject Products in such country outside
of the Territory. 
  

	 	(v)	Effect of No Exercise. If Inspire elects or is deemed to elect to deliver a Non-Exercise Notice to InSite prior to the expiration of the AzaSite Xtra Option
Period, (i) the AzaSite Xtra Option shall not be exercised and (ii) InSite shall be free to develop and commercialize AzaSite Xtra in the Territory independent of Inspire and the Agreement. 

(i) Regulatory Cooperation and Data Access. Without limiting any other obligation under the Agreement, each Party shall, and shall
procure that its Affiliates shall, provide to the other party and its Affiliates on a timely basis such information in its possession relating to Subject Products or AzaSite Xtra, as applicable, as may be reasonably required for regulatory
activities, and otherwise provide reasonable assistance to the other party and its Affiliates, at the requesting Party’s expense, in complying with all regulatory obligations relating to Subject Products or AzaSite Xtra, as applicable,
including without limitation, safety updates, amendments, annual reports, pharmacovigilance filings, investigator notifications, manufacturing facility inspections and certifications and product approvals; provided, however, that
Inspire shall have no obligation to provide to InSite copies of any materials in InSite’s possession prior to the transfer to Inspire of the Regulatory Dossier related to AzaSite Xtra. In addition Inspire will, and will procure that its
Affiliates will, grant InSite access to all reasonably available data related to Subject Products in their possession, generated following approval of any Subject Product by the FDA or foreign equivalent; provided, that such data may be used
by InSite only for the purpose of regulatory strategy and clinical development planning for AzaSite Xtra and InSite shall not disclose or publish such data without Inspire’s prior written consent. 

(j) Trademark License. In the event that the AzaSite Xtra Option is exercised and the proprietary name for AzaSite Xtra does not
incorporate the “AzaSite” component, the Parties shall amend that certain Trademark License Agreement between the Parties dated as of February 15, 2007 and Schedule 1.24 of the Agreement with the effect of adding the proprietary name
for such product to the InSite Trademarks and Domain Names and thereby granting Inspire the rights and licenses to use the InSite Trademarks and Domain Names as amended. 

 
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 ARTICLE 2 
 MISCELLANEOUS 
 2.1 Publicity and Publications. The Parties
hereby agree that any press release relating to the subject matter of this Second Amendment will be subject to Section 8.4. The Parties further agree that any scientific publication proposed to be made by InSite in the Territory relating to
AzaSite Xtra will be subject to the process set forth in Section 8.3; provided, however, that the ten (10) day period referred to in Section 8.3 will instead be a fifteen (15) day time period. 

2.2 Acknowledgement of Continued Effect of Prior First Amendment. The Parties hereby acknowledge that they executed a First
Amendment to License Agreement as of May 19, 2009, and confirm that the First Amendment to License Agreement dated as of May 19, 2009 remains in full force and effect. After execution of this Second Amendment, all references to the
“Agreement” shall be deemed to be references to the Agreement as amended by (i) the First Amendment to License Agreement dated as of May 19, 2009, (ii) the First Amendment to License Agreement made and effective as of
August 9, 2012, and (iii) this Second Amendment. 
 2.3 Defined Terms. Capitalized terms used in this
Second Amendment that are not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. 
 2.4
Full Force and Effect. This Second Amendment amends the terms of the Agreement and is deemed incorporated into, and governed by all other terms of, the Agreement. To the extent that the Agreement is explicitly amended by this Second
Amendment, the terms of this Second Amendment will control where the terms of the Agreement are contrary to or conflict with the terms of this Second Amendment. All other terms and conditions of the Agreement not explicitly amended by this Second
Amendment shall remain in full force and effect. The Agreement shall, together with this Second Amendment, be read and construed as a single instrument. For clarity, the amendment to the defined term “Subject Product” pursuant to this
Second Amendment shall apply equally to the use of such term in that certain Trademark License Agreement between the Parties dated as of February 15, 2007 via the existing incorporation by reference in such Trademark License Agreement.

 2.5 Further Actions. Each Party shall execute, acknowledge and deliver such further instruments, and do all
other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Second Amendment. 
 2.6
Counterparts. This Second Amendment may be executed in one or more counterparts (facsimile and electronic transmission included), and by the respective Parties in separate counterparts, each of which when executed shall be deemed to be
an original but all of which taken together shall constitute one and the same Agreement. After facsimile or electronic transmission, the parties agree to execute and exchange documents with original signatures. 

 
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 IN WITNESS WHEREOF, duly authorized representatives of the Parties have duly executed this Second Amendment
as of the Second Amendment Effective Date. 
  

			
	INSITE VISION INCORPORATED
		
	By:	 	 /s/ Timothy Ruane

	Name:	 	Timothy Ruane
	Title:	 	Chief Executive Officer
	
	INSPIRE PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Mark McDonough

	Name:	 	Mark McDonough
	Title:	 	Vice President & Treasurer

  
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CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION *** 

 Exhibit 1 
 AzaSite Xtra Development Plan 
 *** 

  
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CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***Guaranty of Non-Recourse Obligations

 Exhibit 10.1 
 GUARANTY OF NON-RECOURSE OBLIGATIONS 
 This GUARANTY OF
NON-RECOURSE OBLIGATIONS (this “Guaranty”), dated as of May 8, 2013, is executed by the undersigned (“Guarantor”), to and for the benefit of KEYCORP REAL ESTATE CAPITAL MARKETS, INC., an Ohio corporation
(“Lender”). 
 RECITALS: 

A.        Pursuant to that certain Multifamily Loan and Security Agreement dated
as of the date hereof, by and between CHT DECATUR IL SENIOR LIVING, LLC, a Delaware limited liability company (“Borrower”) and Lender (as amended, restated, replaced, supplemented or otherwise modified from time to time, the
“Loan Agreement”), Lender is making a loan to Borrower in the original principal amount of Eleven Million Sixty Thousand and No/100 Dollars ($11,060,000.00) (the “Mortgage Loan”), as evidenced by that certain
Multifamily Note dated as of the date hereof, executed by Borrower and made payable to the order of Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented or otherwise modified from time to time, the
“Note”). 
 B.        The Note will be secured by,
among other things, a Security Instrument (as defined in the Loan Agreement) encumbering the real property described in the Security Instrument (the “Property”). 

C.        Guarantor has an economic interest in Borrower or will otherwise obtain
a material financial benefit from the Mortgage Loan. 
 D.        As a
condition to making the Mortgage Loan to Borrower, Lender requires that Guarantor execute this Guaranty. 
 NOW,
THEREFORE, in order to induce Lender to make the Mortgage Loan to Borrower, and in consideration thereof, Guarantor agrees as follows: 
 AGREEMENTS: 
  

	1.	 Recitals. 

 The recitals set forth above are incorporated herein by reference as if fully set forth in the body of this Guaranty. 
  

	2.	 Defined Terms. 

 Capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. 

  

					
	Guaranty of Non-Recourse Obligations	 	Form 6015	  	Page 1
	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

	3.	 Guaranteed Obligations. 

 Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment and performance when due, whether at maturity or earlier, by reason of acceleration or
otherwise, and at all times thereafter, of: 
 (a)        all amounts,
obligations and liabilities owed to Lender under Article 3 (Personal Liability) of the Loan Agreement (including the payment and performance of all indemnity obligations of Borrower described in Section 3.03 (Personal Liability for
Indemnity Obligations) of the Loan Agreement and including all of Borrower’s obligations under the Environmental Indemnity Agreement); and 
 (b)        all costs and expenses, including reasonable fees and out-of-pocket expenses of attorneys and expert witnesses, incurred by Lender in enforcing its
rights under this Guaranty. 
  

	4.	 Survival of Guaranteed Obligations. 

The obligations of Guarantor under this Guaranty shall survive any Foreclosure Event, and any recorded release or
reconveyance of the Security Instrument or any release of any other security for any of the Indebtedness. 
  

	5.	 Guaranty of Payment; Community Property. 

Guarantor’s obligations under this Guaranty constitute a present and unconditional guaranty of payment and not
merely a guaranty of collection. If Guarantor (or any Guarantor, if more than one) is a married person, and the state of residence of Guarantor or Guarantor’s spouse is a community property jurisdiction, Guarantor (or each such married
Guarantor, if more than one) agrees that Lender may satisfy Guarantor’s obligations under this Guaranty to the extent of all Guarantor’s separate property and Guarantor’s interest in any community property. 

 

	6.	 Obligations Unsecured; Cross-Default. 

The obligations of Guarantor under this Guaranty shall not be secured by the Security Instrument or the Loan Agreement.
However, a default under this Guaranty shall be an Event of Default under the Loan Agreement, and a default under this Guaranty shall entitle Lender to be able to exercise all of its rights and remedies under the Loan Agreement and other Loan
Documents. 
  

	7.	 Continuing Guaranty. 

 The obligations of Guarantor under this Guaranty shall be unconditional irrespective of the genuineness, validity, regularity or enforceability of any provision of this Guaranty, the Note, the Loan
Agreement, the Security Instrument or any other Loan Document. Guarantor agrees that performance of the obligations hereunder shall be a primary obligation, shall not be subject to any counterclaim, set-off, recoupment, abatement, deferment or
defense based upon any claim that Guarantor may have against Lender, Borrower, any other guarantor of the obligations hereunder or any other person or entity, and shall remain in full force and effect without regard

  

					
	Guaranty of Non-Recourse Obligations	 	Form 6015	  	Page 2
	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

 
to, and shall not be released, discharged or affected in any way by any circumstance or condition (whether or not Guarantor shall have any knowledge thereof), including: 

(a)        any furnishing, exchange, substitution or release of any collateral
securing repayment of the Mortgage Loan, or any failure to perfect any lien in such collateral; 

(b)        any failure, omission or delay on the part of Borrower, Guarantor, any
other guarantor of the obligations hereunder or Lender to conform or comply with any term of any of the Loan Documents or failure of Lender to give notice of any Event of Default; 

(c)        any action or inaction by Lender under or in respect of any of the
Loan Documents, any failure, lack of diligence, omission or delay on the part of Lender to perfect, enforce, assert or exercise any lien, security interest, right, power or remedy conferred upon it in any of the Loan Documents, or any other action
or inaction on the part of Lender; 
 (d)        any Bankruptcy Event,
or any voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement, readjustment, assignment for the benefit of creditors, composition, receivership, liquidation, marshaling of assets and liabilities or similar events or proceedings
with respect to Guarantor or any other guarantor of the obligations hereunder, or any of their respective property or creditors or any action taken by any trustee or receiver or by any court in such proceeding; 

(e)        any merger or consolidation of Borrower into or with any entity or any
sale, lease or Transfer of any asset of Borrower, Guarantor or any other guarantor of the obligations hereunder to any other Person; 
 (f)        any change in the ownership of Borrower or any change in the relationship between Borrower, Guarantor or any other guarantor of the obligations
hereunder, or any termination of such relationship; 
 (g)        any
release or discharge by operation of law of Borrower, Guarantor or any other guarantor of the obligations hereunder, any obligation or agreement contained in any of the Loan Documents; or 

(h)        any other occurrence, circumstance, happening or event, whether
similar or dissimilar to the foregoing, and whether seen or unforeseen, which otherwise might constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which otherwise might limit recourse against Borrower
or Guarantor to the fullest extent permitted by law. 
  

	8.	 Guarantor Waivers. 

 Guarantor hereby waives: 

(a)        the benefit of all principles or provisions of law, statutory or
otherwise, which are or might be in conflict with the terms of this Guaranty (and agrees that Guarantor’s obligations shall not be affected by any circumstances, whether or not referred to in this Guaranty, which might otherwise constitute a
legal or equitable discharge of a surety or a guarantor); 

  

					
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 (b)        the benefits of any right
of discharge under any and all statutes or other laws relating to guarantors or sureties and any other rights of sureties and guarantors; 
 (c)        diligence in collecting the Indebtedness, presentment, demand for payment, protest and all notices with respect to the Loan Documents and this Guaranty
which may be required by statute, rule of law or otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any Event
of Default, notice of intent to accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest and notice of the incurring by Borrower of any obligation or indebtedness; and 

(d)        all rights to require Lender to: 

    (1)        proceed against or exhaust any
collateral held by Lender to secure the repayment of the Indebtedness; 

    (2)        proceed against or pursue any
remedy it may now or hereafter have against Borrower or any guarantor, or, if Borrower or any guarantor is a partnership, any general partner of Borrower or general partner of any guarantor; or 

    (3)        demand or require collateral
security from Borrower, any other guarantor or any other Person as provided by applicable law or otherwise. 
  

	9.	 No Effect Upon Obligations. 

 At any time or from time to time and any number of times, without notice to Guarantor and without releasing, discharging or affecting the liability of Guarantor: 

(a)        the time for payment of the principal of or interest on the
Indebtedness may be extended or the Indebtedness may be renewed in whole or in part; 

(b)        the rate of interest on or period of amortization of the Mortgage Loan
or the amount of the Monthly Debt Service Payments payable under the Loan Documents may be modified; 

(c)        the time for Borrower’s performance of or compliance with any
covenant or agreement contained in any Loan Document, whether presently existing or hereinafter entered into, may be extended or such performance or compliance may be waived; 

(d)        the maturity of the Indebtedness may be accelerated as provided in the
Loan Documents; 
 (e)        any or all payments due under the Loan
Agreement or any other Loan Document may be reduced; 

  

					
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 (f)        any Loan Document may be
modified or amended by Lender and Borrower in any respect, including an increase in the principal amount of the Mortgage Loan; 
 (g)        any amounts under the Loan Agreement or any other Loan Document may be released; 

(h)        any security for the Indebtedness may be modified, exchanged,
released, surrendered or otherwise dealt with or additional security may be pledged or mortgaged for the Indebtedness; 
 (i)        the payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to payment or the security, or both, of
any other present or future creditor of Borrower; 
 (j)        any
payments made by Borrower to Lender may be applied to the Indebtedness in such priority as Lender may determine in its discretion; and 
 (k)        any other terms of the Loan Documents may be modified as required by Lender. 

 

	10.	 Joint and Several (or Solidary) Liability. 

If more than one Person executes this Guaranty as Guarantor, such Persons shall be liable for the obligations hereunder
on a joint and several (solidary instead for purposes of Louisiana law) basis. Lender, in its discretion, may: 

(a)        to the extent permitted by applicable law, bring suit against
Guarantor, or any one or more of the Persons constituting Guarantor, and any other guarantor, jointly and severally (solidarily instead for purposes of Louisiana law), or against any one or more of them; 

(b)        compromise or settle with any one or more of the Persons constituting
Guarantor, or any other guarantor, for such consideration as Lender may deem proper; 

(c)        discharge or release one or more of the Persons constituting
Guarantor, or any other guarantor, from liability or agree not to sue such Person; and 

(d)        otherwise deal with Guarantor and any guarantor, or any one or more of
them, in any manner, and no such action shall impair the rights of Lender to collect from Guarantor any amount guaranteed by Guarantor under this Guaranty. 
 Nothing contained in this Section 10 shall in any way affect or impair the rights or obligations of Guarantor with respect to any other guarantor. 

 

	11.	 Subordination of Affiliated Debt. 

 Any indebtedness of Borrower held by Guarantor now or in the future is and shall be subordinated to the Indebtedness and any such indebtedness of Borrower shall be collected, enforced and received by
Guarantor, as trustee for Lender, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty. 

  

					
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	12.	 Subrogation. 

 Guarantor shall have no right of, and hereby waives any claim for, subrogation or reimbursement against Borrower or any general partner of Borrower by reason of any payment by Guarantor under this
Guaranty, whether such right or claim arises at law or in equity or under any contract or statute, until the Indebtedness has been paid in full and there has expired the maximum possible period thereafter during which any payment made by Borrower to
Lender with respect to the Indebtedness could be deemed a preference under the Insolvency Laws. 
  

	13.	 Voidable Transfer. 

 If any payment by Borrower is held to constitute a preference under any Insolvency Laws or similar laws, or if for any other reason Lender is required to refund any sums to Borrower, such refund shall not
constitute a release of any liability of Guarantor under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s obligations under this Guaranty shall not be discharged except by Guarantor’s performance of such
obligations and then only to the extent of such performance. If any payment by any Guarantor should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including
provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the advice of its counsel, then the obligations guaranteed
hereunder shall automatically be revived, reinstated and restored by the amount of such Voidable Transfer or the amount of such Voidable Transfer that Lender is required or elects to repay or restore, including all reasonable costs, expenses and
legal fees incurred by Lender in connection therewith, and shall exist as though such Voidable Transfer had never been made, and any other guarantor, if any, shall remain liable for such obligations in full. 

 

	14.	 Credit Report/Credit Score. 

 Guarantor acknowledges and agrees that Lender is authorized, no more frequently than once in any twelve (12) month period, to obtain a credit report (if applicable) on Guarantor, the cost of which
shall be paid for by Guarantor. Guarantor acknowledges and agrees that Lender is authorized to obtain a Credit Score (if applicable) for Guarantor at any time at Lender’s expense. 

 

	15.	 Financial Reporting. 

 Guarantor shall deliver to Lender such Guarantor financial statements as required by Section 8.02 (Books and Records; Financial Reporting – Covenants) of the Loan Agreement. 

 

	16.	 Further Assurances. 

 Guarantor acknowledges that Lender (including its successors and assigns) may sell or transfer the Mortgage Loan, or any interest in the Mortgage Loan. 

  

					
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 (a)        Guarantor shall, subject
to Section 16(b) below: 

    (1)        do anything necessary to
comply with the reasonable requirements of Lender or any Investor of the Mortgage Loan or provide, or cause to be provided, to Lender or any Investor of the Mortgage Loan within ten (10) days of the request, at Borrower’s and
Guarantor’s cost and expense, such further documentation or information as Lender or Investor may reasonably require, in order to enable: 
         (A)        Lender to sell the Mortgage Loan to such Investor; 

        (B)        
Lender to obtain a refund of any commitment fee from any such Investor; or 

        (C)        any
such Investor to further sell or securitize the Mortgage Loan; 

    (2)        confirm that Guarantor is not
in default under this Guaranty or in observing any of the covenants or agreements contained in this Guaranty (or, if Guarantor is in default, describing such default in reasonable detail); and 

    (3)        execute and deliver to Lender
and/or any Investor such other documentation, including any amendments, corrections, deletions or additions to this Guaranty as is reasonably required by Lender or such Investor. 

(b)        Nothing in this Section 16 shall require Guarantor to do any
further act that has the effect of: 

    (1)        changing the essential
economic terms of the Mortgage Loan set forth in the related commitment letter between Borrower and Lender; 
     (2)        imposing on Borrower or Guarantor greater personal liability under the Loan Documents than that set forth in the related
commitment letter between Borrower and Lender; or 

    (3)        materially changing the rights
and obligations of Borrower or Guarantor under the commitment letter. 
  

	17.	 Successors and Assigns. 

 Lender may assign its rights under this Guaranty in whole or in part and, upon any such assignment, all the terms and provisions of this Guaranty shall inure to the benefit of such assignee to the extent
so assigned. Guarantor may not assign its rights, duties and obligations under this Guaranty, in whole or in part, without Lender’s prior written consent and any such assignment shall be deemed void ab initio. The terms used to designate any of
the parties herein shall be deemed to include the heirs, legal representatives, successors and assigns of such parties. 

  

					
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	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

	18.	 Final Agreement. 

 Guarantor acknowledges receipt of a copy of each of the Loan Documents and this Guaranty. THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. All prior or contemporaneous agreements, understandings, representations and statements, oral or
written, are merged into this Guaranty. Neither this Guaranty nor any of its provisions may be waived, modified, amended, discharged or terminated except by an agreement in writing signed by the party against which the enforcement of the waiver,
modification, amendment, discharge or termination is sought, and then only to the extent set forth in that agreement. 
  

	19.	 Governing Law. 

 This Guaranty shall be governed by and construed in accordance with the substantive law of the Property Jurisdiction without regard to the application of choice of law principles that would result in the
application of the laws of another jurisdiction. 
  

	20.	 Property Jurisdiction. 

 Guarantor agrees that any controversy arising under or in relation to this Guaranty shall be litigated exclusively in the Property Jurisdiction. The state and federal courts and authorities with
jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Guaranty or any other Loan Document with respect to the subject matter hereof. Guarantor irrevocably
consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. 

 

	21.	 Time is of the Essence. 

 Guarantor agrees that, with respect to each and every obligation and covenant contained in this Guaranty, time is of the essence. 

 

	22.	 Notices. 

 Guarantor agrees to notify Lender of any change in Guarantor’s address within ten (10) Business Days after such change of address occurs. All notices under this Guaranty shall be: 

(a)        in writing and shall be 

    (1)        delivered, in person;

     (2)        mailed, postage
prepaid, either by registered or certified delivery, return receipt requested; 

  

					
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	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

    (3)        sent by overnight courier; or

     (4)        sent by electronic
mail with originals to follow by overnight courier; 

(b)        addressed to the intended recipient at the notice addresses provided
under the signature block at the end of this Guaranty; and 

(c)        deemed given on the earlier to occur of: 

    (1)        the date when the notice is
received by the addressee; or 

    (2)        if the recipient refuses or
rejects delivery, the date on which the notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or such express courier service. 

 

	23.	 Construction. 

 (a)        Any reference in this Guaranty to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless
otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Guaranty or to a Section or Article of this Guaranty. 

(b)        Any reference in this Guaranty to a statute or regulation shall be
construed as referring to that statute or regulation as amended from time to time. 

(c)        Use of the singular in this Guaranty includes the plural and use of
the plural includes the singular. 
 (d)        As used in this
Guaranty, the term “including” means “including, but not limited to” or “including, without limitation,” and is for example only, and not a limitation. 

(e)        Whenever Guarantor’s knowledge is implicated in this Guaranty or
the phrase “to Guarantor’s knowledge” or a similar phrase is used in this Guaranty, Guarantor’s knowledge or such phrase(s) shall be interpreted to mean to the best of Guarantor’s knowledge after reasonable and diligent
inquiry and investigation. 
 (f)        Unless otherwise provided in
this Guaranty, if Lender’s approval, designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision shall
be made in Lender’s sole and absolute discretion. 
 (g)        All
references in this Guaranty to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. 

(h)        “Lender may” shall mean at Lender’s discretion, but
shall not be an obligation. 

  

					
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	24.	 WAIVER OF JURY TRIAL. 

 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF GUARANTOR AND LENDER (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR ANY LOAN DOCUMENT
OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY GUARANTOR AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 
  

	25.	 Schedules. 

 The schedules, if any, attached to this Guaranty are incorporated fully into this Guaranty by this reference and each constitutes a substantive part of this Guaranty. 

ATTACHED SCHEDULE. The following Schedule is attached to this Guaranty: 

            
 ̈        Schedule 1                Modifications to Guaranty 

[Remainder of Page Intentionally Blank] 

  

					
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 IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty
under seal (where applicable) or has caused this Guaranty to be signed and delivered under seal (where applicable) by its duly authorized representative. Where applicable law so provides, Guarantor intends that this Guaranty shall be deemed to be
signed and delivered as a sealed instrument. 
 GUARANTOR: 

CNL HEALTHCARE PROPERTIES, INC., a 

Maryland corporation 
 By:       /s/ Joshua J. Taube 
 Name:  Joshua J. Taube 

Title:    Vice President 

Address for Notices to Guarantor: 

CNL Center at City Commons 
 450 South Orange Avenue, Suite 1200 
 Orlando, Florida 32801

 Attn: Holly Greer, SVP and General Counsel 

Email address:  holly.greer@cnl.com 

  

					
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	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

 SCHEDULE 1 TO 
 GUARANTY OF NON-RECOURSE OBLIGATIONS 
 State-Specific Provisions

 [Intentionally Omitted] 

  

					
	Guaranty of Non-Recourse Obligations	 	Form 6015	  	Page Sch. 1-1
	Fannie Mae	 	06-12	  	© 2012 Fannie Mae

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