Document:

EX-4.13

 Exhibit 4.13 
  

 
  

JPMORGAN CHASE & CO. 

AND 
 U.S. BANK TRUST
NATIONAL ASSOCIATION, as Trustee 
  

 
 SUBORDINATED
INDENTURE 
 Dated as of
                     
  

 
  

 
  

 JPMORGAN CHASE & CO. 

Reconciliation and tie between Trust Indenture Act of 1939 and 

Indenture, dated as of
                     
  

			
	 Trust Indenture Act Section
	  	 Indenture Section

	 §310(a) (1)
	  	609
	 (a) (2)
	  	609
	 (a) (3)
	  	Not Applicable
	 (a) (4)
	  	Not Applicable
	 (b)
	  	608
		  	610
	 §311(a)
	  	613
	 (b)
	  	613
	 §312(a)
	  	701
		  	702(a)
	 (b)
	  	702(b)
	 (c)
	  	702(c)
	 §313(a)
	  	703(a)
	 (b)
	  	703(a)
	 (c)
	  	703(a)
	 (d)
	  	703(b)
	 §314(a)
	  	704
	 (b)
	  	Not Applicable
	 (c) (1)
	  	102
	 (c) (2)
	  	102
	 (c) (3)
	  	Not Applicable
	 (d)
	  	Not Applicable
	 (e)
	  	102
	 §315(a)
	  	601(a)
	 (b)
	  	602
		  	703(a)
	 (c)
	  	601(b)
	 (d)
	  	601(c)
	 (d) (1)
	  	601(a)(1)
 601(a)(2)

	 (d) (2)
	  	601(c)(2)
	 (d) (3)
	  	601(c)(3)
	 (e)
	  	514
	 §316(a) (1) (A)
	  	502
		  	512
	 (a) (1) (B)
	  	513
	 (a) (2)
	  	Not Applicable
	 (b)
	  	508
	 (c)
	  	Not Applicable
	 §317(a) (1)
	  	503
	 (a) (2)
	  	504
	 (b)
	  	1003
	 §318(a)
	  	107

  

	Note:	this reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

 TABLE OF CONTENTS 

 
  

 

							
	 	  	 	  	PAGE	 
		
	 ARTICLE ONE: DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION
	  	 	1	  
			
	 Section 101.
	  	 Definitions
	  	 	1	  
	 Section 102.
	  	 Compliance Certificates and Opinions
	  	 	7	  
	 Section 103.
	  	 Form of Documents Delivered to Trustee
	  	 	8	  
	 Section 104.
	  	 Acts of Holders
	  	 	8	  
	 Section 105.
	  	 Notices, Etc., to Trustee and Company
	  	 	9	  
	 Section 106.
	  	 Notice to Holders; Waiver
	  	 	9	  
	 Section 107.
	  	 Conflict with Trust Indenture Act
	  	 	10	  
	 Section 108.
	  	 Effect of Headings and Table of Contents
	  	 	10	  
	 Section 109.
	  	 Successors and Assigns
	  	 	10	  
	 Section 110.
	  	 Separability Clause
	  	 	10	  
	 Section 111.
	  	 Benefits of Indenture
	  	 	10	  
	 Section 112.
	  	 Governing Law
	  	 	10	  
	 Section 113.
	  	 Legal Holidays
	  	 	11	  
	 Section 114.
	  	 No Recourse Against Others
	  	 	11	  
		
	 ARTICLE TWO: SECURITY FORMS
	  	 	11	  
			
	 Section 201.
	  	 Forms Generally
	  	 	11	  
	 Section 202.
	  	 Form of Face of Security
	  	 	12	  
	 Section 203.
	  	 Form of Reverse of Security
	  	 	13	  
	 Section 204.
	  	 Additional Provisions Required in Global Security
	  	 	18	  
	 Section 205.
	  	 Form of Trustee’s Certificate of Authentication
	  	 	18	  
		
	 ARTICLE THREE: THE SECURITIES
	  	 	19	  
			
	 Section 301.
	  	 Amount Unlimited; Issuable in Series
	  	 	19	  
	 Section 302.
	  	 Denominations
	  	 	21	  
	 Section 303.
	  	 Execution, Authentication, Delivery and Dating
	  	 	21	  
	 Section 304.
	  	 Temporary Securities
	  	 	23	  
	 Section 305.
	  	 Registration, Registration of Transfer and Exchange
	  	 	24	  
	 Section 306.
	  	 Mutilated, Destroyed, Lost and Stolen Securities
	  	 	25	  
	 Section 307.
	  	 Payment of Interest; Interest Rights Preserved
	  	 	26	  
	 Section 308.
	  	 Persons Deemed Owners
	  	 	27	  
	 Section 309.
	  	 Cancellation
	  	 	27	  
	 Section 310.
	  	 Computation of Interest
	  	 	28	  
	 Section 311.
	  	 CUSIP Numbers
	  	 	28	  
		
	 ARTICLE FOUR: SATISFACTION AND DISCHARGE
	  	 	28	  
			
	 Section 401.
	  	 Satisfaction and Discharge of Indenture
	  	 	28	  

  

	Note:	This table of contents shall not, for any purpose, be deemed to be a part of the Indenture. 

  
 - i - 

							
	 	  	 	  	PAGE	 
			
	 Section 402.
	  	 Application of Trust Money
	  	 	29	  
		
	 ARTICLE FIVE: REMEDIES
	  	 	29	  
			
	 Section 501.
	  	 Events of Default
	  	 	29	  
	 Section 502.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	 	30	  
	 Section 503.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	 	31	  
	 Section 504.
	  	 Trustee May File Proofs of Claim
	  	 	32	  
	 Section 505.
	  	 Trustee May Enforce Claims Without Possession of Securities
	  	 	33	  
	 Section 506.
	  	 Application of Money Collected
	  	 	33	  
	 Section 507.
	  	 Limitation on Suits
	  	 	34	  
	 Section 508.
	  	 Unconditional Right of Holders to Receive Principal, Premium and Interest
	  	 	34	  
	 Section 509.
	  	 Restoration of Rights and Remedies
	  	 	34	  
	 Section 510.
	  	 Rights and Remedies Cumulative
	  	 	35	  
	 Section 511.
	  	 Delay or Omission Not Waiver
	  	 	35	  
	 Section 512.
	  	 Control by Holders
	  	 	35	  
	 Section 513.
	  	 Waiver of Past Defaults
	  	 	36	  
	 Section 514.
	  	 Undertaking for Costs
	  	 	36	  
		
	 ARTICLE SIX: THE TRUSTEE
	  	 	36	  
			
	 Section 601.
	  	 Certain Duties and Responsibilities
	  	 	36	  
	 Section 602.
	  	 Notice of Defaults
	  	 	37	  
	 Section 603.
	  	 Certain Rights of Trustee
	  	 	37	  
	 Section 604.
	  	 Not Responsible for Recitals or Issuance of Securities
	  	 	38	  
	 Section 605.
	  	 May Hold Securities
	  	 	39	  
	 Section 606.
	  	 Money Held in Trust
	  	 	39	  
	 Section 607.
	  	 Compensation and Reimbursement
	  	 	39	  
	 Section 608.
	  	 Disqualifications; Conflicting Interests
	  	 	39	  
	 Section 609.
	  	 Corporate Trustee Required; Eligibility
	  	 	39	  
	 Section 610.
	  	 Resignation and Removal; Appointment of Successor
	  	 	40	  
	 Section 611.
	  	 Acceptance of Appointment by Successor
	  	 	41	  
	 Section 612.
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	 	42	  
	 Section 613.
	  	 Preferential Collection of Claims Against Company
	  	 	42	  
	 Section 614.
	  	 Appointment of Authenticating Agent
	  	 	43	  
		
	 ARTICLE SEVEN: HOLDERS’ LISTS AND REPORTS
BY TRUSTEE AND COMPANY
	  	 	44	  
			
	 Section 701.
	  	 Company to Furnish Trustee Names and Addresses of Holders
	  	 	44	  
	 Section 702.
	  	 Preservation of Information; Communications to Holders
	  	 	44	  
	 Section 703.
	  	 Reports by Trustee
	  	 	45	  
	 Section 704.
	  	 Reports by Company
	  	 	45	  
		
	 ARTICLE EIGHT: CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER
OR LEASE
	  	 	45	  
			
	 Section 801.
	  	 Company May Consolidate, Etc., Only on Certain Terms
	  	 	45	  
	 Section 802.
	  	 Successor Corporation Substituted
	  	 	46	  

  
 - ii - 

							
	 	  	 	  	PAGE	 
		
	 ARTICLE NINE: SUPPLEMENTAL INDENTURES
	  	 	46	  
			
	 Section 901.
	  	 Supplemental Indentures Without Consent of Holders
	  	 	46	  
	 Section 902.
	  	 Supplemental Indentures with Consent of Holders
	  	 	47	  
	 Section 903.
	  	 Execution of Supplemental Indentures
	  	 	48	  
	 Section 904.
	  	 Effect of Supplemental Indentures
	  	 	49	  
	 Section 905.
	  	 Conformity with Trust Indenture Act
	  	 	49	  
	 Section 906.
	  	 Reference in Securities to Supplemental Indentures
	  	 	49	  
		
	 ARTICLE TEN: COVENANTS
	  	 	49	  
			
	 Section 1001.
	  	 Payment of Principal, Premium and Interest
	  	 	49	  
	 Section 1002.
	  	 Maintenance of Office or Agency
	  	 	50	  
	 Section 1003.
	  	 Money for Securities Payments to Be Held in Trust
	  	 	50	  
	 Section 1004.
	  	 Corporate Existence
	  	 	51	  
	 Section 1005.
	  	 Statement as to Compliance
	  	 	52	  
	 Section 1006.
	  	 Waiver of Certain Covenants
	  	 	52	  
		
	 ARTICLE ELEVEN: REDEMPTION OF SECURITIES
	  	 	53	  
			
	 Section 1101.
	  	 Applicability of Article
	  	 	53	  
	 Section 1102.
	  	 Election to Redeem; Notice to Trustee
	  	 	53	  
	 Section 1103.
	  	 Selection by Trustee of Securities to Be Redeemed
	  	 	53	  
	 Section 1104.
	  	 Notice of Redemption
	  	 	54	  
	 Section 1105.
	  	 Deposit of Redemption Price
	  	 	54	  
	 Section 1106.
	  	 Securities Payable on Redemption Date
	  	 	54	  
	 Section 1107.
	  	 Securities Redeemed in Part
	  	 	55	  
		
	 ARTICLE TWELVE: SINKING FUNDS
	  	 	55	  
			
	 Section 1201.
	  	 Applicability of Article
	  	 	55	  
	 Section 1202.
	  	 Satisfaction of Sinking Fund Payments with Securities
	  	 	55	  
	 Section 1203.
	  	 Redemption of Securities for Sinking Fund
	  	 	56	  
		
	 ARTICLE THIRTEEN: DEFEASANCE AND COVENANT DEFEASANCE
	  	 	56	  
			
	 Section 1301.
	  	 Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance
	  	 	56	  
	 Section 1302.
	  	 Defeasance and Discharge
	  	 	56	  
	 Section 1303.
	  	 Covenant Defeasance
	  	 	57	  
	 Section 1304.
	  	 Conditions to Defeasance or Covenant Defeasance
	  	 	57	  
	 Section 1305.
	  	 Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions
	  	 	60	  
		
	 ARTICLE FOURTEEN: SUBORDINATION
	  	 	60	  
			
	 Section 1401.
	  	 Agreement that the Securities be Subordinated to the Extent Provided
	  	 	60	  

  
 - iii - 

							
	 	  	 	  	PAGE	 
			
	 Section 1402.
	  	 Company Not to Make Payments with Respect to Securities in Certain Circumstances
	  	 	61	  
	 Section 1403.
	  	 Securities Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization of the
Company
	  	 	61	  
	 Section 1404.
	  	 Obligation of the Company to Give Prompt Notice to Trustee; Trustee and Holders of Securities May Rely on Certificate of Liquidating
Agent; Trustee May Require Further Evidence as to Ownership of Senior Indebtedness
	  	 	62	  
	 Section 1405.
	  	 Obligation of the Company Unconditional
	  	 	63	  
	 Section 1406.
	  	 No Fiduciary Duty to Holders of Senior Indebtedness
	  	 	63	  
	 Section 1407.
	  	 Notice to Trustee of Facts Prohibiting Payments
	  	 	63	  
	 Section 1408.
	  	 Application by Trustee of Moneys Deposited with It
	  	 	64	  
	 Section 1409.
	  	 Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior Indebtedness
	  	 	64	  
	 Section 1410.
	  	 Authorization of Trustees to Effectuate Subordination of the Securities
	  	 	65	  
	 Section 1411.
	  	 Right of Trustee to Hold Senior Indebtedness
	  	 	65	  
	 Section 1412.
	  	 Article Fourteen Not to Prevent Defaults
	  	 	65	  

  
 - iv - 

 INDENTURE, dated as of
                    , between JPMORGAN CHASE & CO., a corporation duly incorporated and
existing under the laws of the State of Delaware (herein called the “Company”), having its principal office at 270 Park Avenue, New York, New York 10017, and U.S. BANK TRUST NATIONAL
ASSOCIATION, a national banking association duly organized and existing under the laws of the United States, as Trustee (herein called the “Trustee”). 

RECITALS OF THE COMPANY 
 The
Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured subordinated bonds, debentures, notes or other evidences of indebtedness (herein called the
“Securities”), to be issued in one or more series as in this Indenture provided. 
 All things necessary to make this Indenture a
valid agreement of the Company, in accordance with its terms, have been done. 
 NOW, THEREFORE,
THIS INDENTURE WITNESSETH: 
 For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or of series thereof, as follows: 

ARTICLE ONE: 

DEFINITIONS AND OTHER PROVISIONS 

OF GENERAL APPLICATION 
  

	Section 101.	Definitions. 

 For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires: 
 (1) pronouns used herein shall be deemed to refer to the corresponding
masculine, feminine and neuter genders. 
 (2) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular; 
 (3) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; and 
 (4) the words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 

“Act,” when used with respect to any Holder, has the meaning specified in Section 104. 

  
 1 

 “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

“Attorney-in-Fact” means an officer of the Bank who has been duly appointed as an attorney-in-fact by the Company. 

“Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate Securities. 

“Bank” means JPMorgan Chase Bank, National Association, a national banking association duly organized and existing under the laws of
the United States, and its successors (whether by consolidation, merger, conversion, transfer of all or substantially all their assets and business or otherwise) so long as JPMorgan Chase Bank, National Association or any successor is a Subsidiary.

 “Board of Directors” means either the board of directors of the Company or any committee of that board duly authorized to act
hereunder or any directors or officers of the Company or Attorneys-in-Fact to whom such board of directors or such committee shall have duly delegated its authority. 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been
duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Business Day,” when used with respect to any Place of Payment, unless otherwise specified as contemplated by Section 301,
means any day, other than a Saturday or Sunday, which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law or executive order to close. 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if
at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

“Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall
have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. 

“Company Request” or “Company Order” means a written request or order delivered to the Trustee and signed in the name of
the Company by (i) the Chairman of the Board, a Vice Chairman, the President, its Chief Financial Officer, a Vice President, a Managing Director or any Attorney-in-Fact of the Company, and by (ii) any additional officer having any of the
foregoing titles or by the Controller, an Assistant Controller, the Secretary or an Assistant Secretary of the Company. 

  
 2 

 “Corporate Trust Office” means the principal office of the Trustee in the Borough of
Manhattan, The City of New York, at which at any particular time its corporate trust business shall be administered, such office being currently located at 100 Wall Street, New York, New York 10005. 

“corporation” includes corporations, associations, companies and business trusts. 

“covenant defeasance” has the meaning specified in Section 1303. 

“default”, when used in Section 602, has the meaning specified in that section. 

“Defaulted Interest” has the meaning specified in Section 307. 

“defeasance” has the meaning specified in Section 1302. 

“Depository” means, with respect to the Securities of any series issuable or issued in whole or in part in the form of one or more
Global Securities, the Person designated as Depository by the Company pursuant to Section 301. 
 “Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended from time to time. 
 “Event of Default” has the meaning specified in
Section 501. 
 “Global Security” means a Security in the form prescribed in Section 204 evidencing all or part of a
series of Securities, issued to the Depository for such series or its nominee, and registered in the name of such Depository or nominee. 

“Holder” means a Person in whose name a Security is registered in the Security Register. 

“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms or particular series of Securities established as contemplated by Section 301. 

“interest,” when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity,
means interest payable after Maturity. 
 “Interest Payment Date,” when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security. 
 “Maturity,” when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 

“Officer’s Certificate” means a certificate delivered to the Trustee and signed by the Chairman of the Board, a Vice Chairman,
the President, the Chief Financial Officer, a Vice President, a Managing Director, the Controller, an Assistant Controller, the Secretary, an Assistant Secretary or any Attorney-in-Fact of the Company. 

  
 3 

 “Opinion of Counsel” means a written opinion of counsel who may be an employee of the
Company or other counsel to the Company. 
 “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502. 

“Outstanding,” when used with respect to Securities, means, as of the date of determination, all Securities theretofore
authenticated and delivered under this Indenture, except: 
 (i) Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation; 
 (ii) Securities for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 

(iii) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of which other Securities have
been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose
hands such Securities are valid obligations of the Company; and 
 (iv) Securities as to which any property deliverable upon
conversion thereof has been delivered (or such delivery has been made available), or as to which any other particular conditions have been satisfied, in each case as may be provided for in such Securities as contemplated in Section 301; 

provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be
due and payable as of the date of such determination upon acceleration of the Maturity thereof pursuant to Section 502, (ii) the principal amount of a Security denominated in a foreign currency or currency unit shall be the U.S. dollar
equivalent, determined as of the date of original issuance of such Security, of the principal amount of such Security (or, in the case of an Original Issue Discount Security denominated in a foreign currency or currency unit, the U.S. dollar
equivalent as of the date of original issuance of such Security of the amount determined as provided in (i) above), (iii) the principal amount of a Security for which the amount of payments of principal of (and premium, if any) or interest
on such Security may be determined with reference to an index shall be determined as of the date of original issuance of such Security and (iv) Securities owned by the Company or any other obligor upon the Securities or any Affiliate

  
 4 

 
of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
established to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other
obligor. 
 “Paying Agent” means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on
any Securities on behalf of the Company. 
 “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of
Payment,” when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest on the Securities of that series are payable as contemplated by Section 301. 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
 “Record Date” means a Regular Record Date or a
Special Record Date, as the case may be. 
 “Redemption Date,” when used with respect to any Security to be redeemed, means the
date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption Price,” when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
 “Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 301. 

“Responsible Officer,” when used with respect to the Trustee, means the chairman or any vice-chairman of the board of directors, the
chairman or any vice-chairman of the executive committee of the board of directors, the chairman of the trust committee, the president, any vice president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the cashier,
any assistant cashier, any trust officer or assistant trust officer, the controller or any assistant controller or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers
and also means, with respect to a particular corporation trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 

  
 5 

 “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture. “Security” shall have a corresponding meaning. 

“Security Register” and “Security Registrar” have the respective meanings specified in Section 305. 

“Senior Indebtedness” of the Company means the principal of (and premium, if any) and interest on: 

(i) all indebtedness of the Company for money borrowed; 

(ii) similar obligations of the Company arising from off-balance sheet guarantees and direct credit substitutes; 

(iii) all obligations of the Company for claims in respect of derivative products such as interest rate and foreign exchange contracts,
commodity contracts and similar arrangements (and for purposes of this definition, “claim” shall have the meaning assigned thereto in Section 101(4) of the Bankruptcy Code of 1978, as amended and in effect on the date of execution of
this Indenture); and 
 (iv) any deferrals, renewals or extensions of any of the foregoing clauses (i), (ii) or (iii); 

in each case, whether outstanding on the date of execution of this Indenture or thereafter created, assumed or incurred; provided that in each case
Senior Indebtedness shall not include (A) the Securities; (B) all securities issued pursuant to the Amended and Restated Indenture, dated as of December 15, 1992, as amended by the Second Supplemental Indenture, dated as of
October 8, 1996, and the Third Supplemental Indenture, dated as of December 29, 2000, between the Company (as successor-by-merger to The Chase Manhattan Corporation, a Delaware corporation) and U.S. Bank Trust National Association
(formerly known as First Trust of New York, National Association), a national banking association, as successor to Morgan Guaranty Trust Company of New York, a New York banking corporation, as the same may be further amended, supplemented or
otherwise modified from time to time; (C) all securities issued pursuant to the Indenture, dated as of October 21, 2010, between the Company and U.S. Bank Trust National Association, a national banking association, as the same may be
amended, supplemented or otherwise modified from time to time; and (D) such other indebtedness of the Company as is by its terms expressly stated not to be senior in right of payment to, or to rank pari passu with, the Securities or the other
securities referred to in clauses (B) and (C) above. 
 The term “indebtedness of the Company for money borrowed” means any obligation of, or
any obligation guaranteed by, the Company for the repayment of money borrowed, whether or not evidenced by bonds, debentures, notes or other written instruments, and any deferred obligation for the payment of the purchase price of property or
assets. The Securities shall rank pari passu with the securities referred to in clauses (B) and (C) above, subject to the subordination provisions of Article Fourteen. 

“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307. 

  
 6 

 “Stated Maturity,” when used with respect to any Security or any installment of
principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 

“Subsidiary” means a corporation more than 50% of the outstanding Voting Stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. 
 “Trustee” means the Person
named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person
who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as in force at the date as of which this instrument was executed,
except as provided in Section 905 and except that in the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as
so amended. 
 “U.S. Government Obligations” has the meaning specified in Section 1304(1). 

“Vice President,” when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a
number or a word or words added before or after the title “vice president”. 
 “Voting Stock” means stock of the class
or classes having a general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of a corporation (irrespective of whether or not at the time stock of any other class or classes shall
have or might have voting power by reason of the happening of any contingency). 
  

	Section 102.	Compliance Certificates and Opinions. 

 Upon any application or request by the Company to
the Trustee to take any action under any provision of this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request
as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished. 

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include 

(1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the
definitions herein relating thereto; 

  
 7 

 (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (3) a statement
that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

 

	Section 103.	Form of Documents Delivered to Trustee. 

 In any case where several matters are required
to be certified by, or covered by an opinion of any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but
one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

Any certificate or opinion of an officer of, or Attorney-in-Fact for, the Company may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer or Attorney-in-Fact knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of, or an
Attorney-Fact or Attorneys-in-Fact for, the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or
execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 

 

	Section 104.	Acts of Holders. 

 (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing; and,
except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 

  
 8 

 (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him
the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 

(c) The ownership of Securities shall be proved by the Security Register. 

(d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future
Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such Security. 
  

	Section 105.	Notices, Etc., to Trustee and Company. 

 Any request, demand, authorization, direction,
notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished in, or filed with, 

(1) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or
filed in writing to or with the Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration; or 
 (2)
the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company addressed to it, Attention: Secretary, at
the address of its principal office specified in the first paragraph of this instrument or at any other address previously furnished in writing to the Trustee by the Company. 
  

	Section 106.	Notice to Holders; Waiver. 

 Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not
later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Any notice which is mailed in the manner herein provided shall be conclusively presumed to have been duly given. Where this Indenture provides for
notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 

  
 9 

 In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give one’s notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

Where this Indenture provides for notice of any event to a Holder of a Global Security, such notice shall be sufficiently given if given to
the Depository for such Security (or its designee), pursuant to the applicable procedures of the Depository, not later than the latest date, if any, and not earlier than the earliest date, if any, prescribed for the giving of such notice in such
procedures. 
  

	Section 107.	Conflict with Trust Indenture Act. 

 If any provision hereof limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under the Trust Indenture Act to be a part of and govern this Indenture, such Trust Indenture Act provision shall control. If any provision of this Indenture modifies or excludes
any provision of the Trust Indenture Act that may be so modified or excluded, such Trust Indenture Act provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. 

 

	Section 108.	Effect of Headings and Table of Contents. 

 The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the construction hereof. 
  

	Section 109.	Successors and Assigns. 

 All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not. 
  

	Section 110.	Separability Clause. 

 In case any provision in this Indenture or in the Securities shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

	Section 111.	Benefits of Indenture. 

 Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their successors hereunder, the holders of Senior Indebtedness and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture. 

 

	Section 112.	Governing Law. 

 This Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York. 

  
 10 

	Section 113.	Legal Holidays. 

 In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest
shall accrue for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 
  

	Section 114.	No Recourse Against Others. 

 A director, officer, employee, Attorney-in-Fact or
stockholder as such of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Holder shall waive and release all such liability. This waiver and release shall be part of the consideration for the issue of the Securities. 

ARTICLE TWO: 

SECURITY FORMS 
  

	Section 201.	Forms Generally. 

 The Securities of each series shall be substantially in the form set
forth in this Article, or in such other form (including permanent global form) as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the officers of the Company or any Attorney-in-Fact executing such Securities, as evidenced by their execution of the Securities. If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 303 for the authentication and delivery of such Securities. If all of the Securities of any series established by action taken pursuant to a Board Resolution are not to be issued at one time, it shall not
be necessary to deliver a record of such action at the time of issuance of each Security of such series, but an appropriate record of such action shall be delivered at or before the time of issuance of the first Security of such series. 

The Trustee’s certificates of authentication shall be in substantially the form set forth in this Article. 

The definitive Securities shall be printed or may be produced in any other manner (provided that if any Securities are to be listed on
any securities exchange, then in such manner as may be permitted by the rules of any such securities exchange), all as determined by the officers of the Company or any Attorney-in-Fact executing such Securities, as evidenced by their execution of
such Securities. 

  
 11 

	Section 202.	Form of Face of Security. 

 [Insert any legend required by the Internal Revenue Code and
the regulations thereunder] 
 JPMORGAN CHASE & CO. 

 
  

 

			
	No.             	  	$        

 JPMORGAN CHASE & CO., a corporation duly incorporated and existing under the laws of the State
of Delaware (herein called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of
                     Dollars              on
                     [if the Security is to bear interest prior to Maturity, insert —, and to pay interest thereon from
                     or from the most recent Interest Payment Date to which interest has been paid or duly provided for, [insert appropriate
period] on                      and
                     in each year, commencing
                    , at the rate of     % per annum, until the principal hereof is paid or made available for payment [if
applicable, insert —, and (to the extent that the payment of such interest shall be legally enforceable) at the rate of     % per annum on any overdue principal and premium [if applicable, insert — and on any
overdue installment of interest]. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the                      or
                     as the case may be, next preceding such Interest Payment Date. [In the event that any Interest Payment Date falls on a day that
is not a business day, the interest payment due on that date will be paid on the next day that is a business day, and interest shall be paid on that business day with the same force and effect as if made on the Interest Payment Date, without any
interest or other payment with respect to the delay. A “business day” is any day, other than a Saturday, Sunday or other day that, in New York City, banking institutions generally are authorized or obligated by law or executive order to
close.]  
 Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture]. [If the Security is not to bear interest prior to Maturity, insert —
The principal of this Security shall not bear interest except in the case of a default in payment  

  
 12 

 
of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this Security shall bear interest at the rate of     % per
annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of such principal has been made or duly provided for. [Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so paid on demand shall bear interest at the rate of     % per annum (to the extent that the payment of such interest shall be legally
enforceable), which shall accrue from the date of such demand for payment to the date payment of such interest has been made or duly provided for, and such interest shall also be payable on demand].] 

Payment of the principal of (and premium, if any) and [if applicable, insert — any such] interest on this Security will be
made at the office or agency of the Company maintained for that purpose in                     , in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts [unless otherwise specifically provided with respect to the Securities of the series, insert —; provided, however, that at the option of the
Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register]. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof, or an Authenticating Agent, by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: 
  

			
	  

		
	By	 	  

  

	
	Attest:
	
	  

  

	Section 203.	Form of Reverse of Security. 

 This Security is one of a duly authorized issue of
subordinated debt securities of the Company (herein called the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, dated as of
                     (herein called the “Indenture”), between the Company and U.S. Bank Trust National Association, as Trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture), duly executed and delivered by the Company. Reference is hereby made to the Indenture and all indentures supplemental thereto for a description of the
respective rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company, the holders of Senior 

  
 13 

 
Indebtedness and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. Terms defined in the Indenture are used herein as so
defined. The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any at different rates, may be subject to different
redemption provisions, if any, may be subject to different sinking funds, if any, may be subject to different covenants and Events of Default and may otherwise vary as provided in the Indenture. This Security is one of the series designated as the
[                    ] Subordinated Notes due [    ] of the Company (herein called the “Notes”), which series shall
have a current aggregate principal amount of $[        ], which principal amount may be increased from time to time through the issuance of additional Notes. 

Interest on this Security shall be computed on the basis of [    ]. 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest (if any) on this Security at the times, place and rate, and in the coin or currency herein prescribed. 

[If applicable, insert—This Security is not redeemable prior to maturity and is not subject to any sinking fund.] 

[If applicable, insert — The Securities of this series are subject to redemption upon not less than 30 days’ nor more
than 60 days’ notice by mail [if applicable, insert — (1) on                      in any year commencing with the year
                     and ending with the year
                     through operation of the sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)] at
any time [on or after             , 20    ], as a whole or in part, at the election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [on or before                     ,     %, and if redeemed] during the 12-month period beginning
                     of the years indicated, 
  

							
	Year	 	Redemption
Price	 	Year	 	Redemption
Price
		 		 		 	
		 		 		 	
		 		 		 	

 And thereafter at a Redemption Price equal to     % of the principal amount, together in
the case of any such redemption [if applicable, insert — (whether through operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant Regular Record Dates referred to on the face hereof, all as provided in the Indenture.] 

  
 14 

 [If applicable, insert — The Securities of this series are subject to
redemption upon not less than 30 days’ nor more than 60 days’ notice by mail (1) on                      in any year commencing with
the year                      and ending with the year
                     through operation of the sinking fund for this series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table below, and (2) at any time [on or after                     ], as
a whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed during the
12-month period beginning                      of the years indicated, 

 

					
	 Year
	 	Redemption Price
For Redemption
Through Operation
Of the
Sinking Fund	 	Redemption Price For
Redemption Otherwise
Than Through Operation
of the Sinking Fund
		 		 	
		 		 	
		 		 	

 and thereafter at a Redemption Price equal to     % of the principal amount, together in the case of any
such redemption (whether through operation of the sinking fund or otherwise) with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the relevant Regular Record Dates referred to on the face hereof, all as provided in the Indenture.] 

[Notwithstanding the foregoing, the Company may not, prior to
                    , redeem any Securities of this series as contemplated by [Clause (2) of] the preceding paragraph as a part of, or in
anticipation of, any refunding operation by the application, directly or indirectly, of moneys borrowed having an interest cost to the Company (calculated in accordance with generally accepted financial practice) of less than
    % per annum.] 
 [The sinking fund for this series provides for the redemption on
                     in each year beginning with the year
                     and ending with the year
                     of [not less than] $         [(“mandatory sinking fund”) and not more than
$        ] aggregate principal amount of Securities of this series. [Securities of this series acquired or redeemed by the Company otherwise than through [mandatory] sinking fund payments may be credited
against subsequent [mandatory] sinking fund payments otherwise required to be made [if applicable, insert — in the inverse order in which they become due].] 

  
 15 

 In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

[If applicable, insert — The Indenture contains provisions for defeasance at any time of [(a)] [the entire indebtedness
evidenced by this Security] [and (b)] certain restrictive covenants,] [in each case] upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Security.] 

The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness, as provided in the Indenture, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and
shall be bound by such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee his or her
attorney-in-fact for any and all such purposes. Each Holder hereof, by his or her acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness,
whether now outstanding or hereafter created, incurred, assumed or guaranteed, and waives reliance by each such holder upon said provisions. 

[If the Security is not an Original Issue Discount Security, insert — If an Event of Default with respect to Securities of
this series shall occur and be continuing, the principal of the securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.] [If the Security is an Original Issue Discount Security,
insert — If an Event of Default with respect to Securities of this series shall occur and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in
the Indenture. Such amount shall be equal to — insert formula for determining the amount.] Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue
interest (in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of (and premium, if any) and interest, if any, on the Securities
of this series shall terminate. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of 

  
 16 

 
this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable
in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest (if any) on this Security are payable, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this
series, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of
$        and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

No recourse for the payment of the principal of (or premium, if any) or interest on this Security or for any claim based hereon or otherwise
in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in this Security, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company, or any successor corporation, whether by virtue of any
constitution, statue or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released by each
holder of this Security. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in
the Indenture. 
 This Security shall be governed by and construed in accordance with the laws of the State of New York 

  
 17 

	Section 204.	Additional Provisions Required in Global Security. 

 Any Global Security issued hereunder
shall, in addition to the provisions contained in Sections 202 and 203, bear a legend in substantially the following form: 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the
name of a Depository or a nominee of a Depository. This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and no transfer
of this Security (other than a transfer of this Security as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository) may be registered except in such limited
circumstances.” 
 Unless otherwise provided as contemplated by Section 301 with respect to any series of Securities, any Global
Security shall provide, in addition to the provisions set forth in Sections 202 and 203 and the preceding paragraph, that the Depository will not sell, assign, transfer or otherwise convey any beneficial interest in such Global Security unless such
beneficial interest is in an amount equal to an authorized denomination for Securities of such series, and that the Depository, by accepting such Global Security, agrees to be bound by such provision. 

 

	Section 205.	Form of Trustee’s Certificate of Authentication. 

 This is one of the Securities of
the series designated therein referred to in the within-mentioned Indenture. 
  

			
	 U.S. BANK TRUST NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	  

		 	Authorized Officer
		
	[or]	 	
	
	 U.S. BANK TRUST NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	THE BANK OF NEW YORK MELLON
		 	Authenticating Agent
		
	By:	 	  

		 	Authorized Signatory

  
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 ARTICLE THREE: 

THE SECURITIES 
  

	Section 301.	Amount Unlimited; Issuable in Series. 

 The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited. 
 The Securities may be issued in one or more series. There
shall be established in or pursuant to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided, in an Officer’s Certificate, or established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series, 
 (1) the title of the Securities of the series (which shall distinguish the
Securities of the series from all other Securities); 
 (2) any limit upon the aggregate principal amount or the aggregate
initial offering price of the Securities of the series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to Section 303, shall not have been issued and sold by the Company and are therefore deemed never to have been
authenticated and delivered hereunder); 
 (3) the Person to whom any interest on a Security of the series shall be payable,
if other than the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest; 

(4) the date or dates on which the principal of the Securities of the series is payable; the provisions, if any, for extension
of such date or dates; 
 (5) the rate or rates (or the formula pursuant to which such rate or rates shall be determined) at
which the Securities of the series shall bear interest, if any, including the rate of interest applicable to overdue payments of principal, and the rate of interest, if any, applicable to overdue payments of interest if different from the rate of
interest stated in the title of the Security; the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Interest Payment
Date; 
 (6) the place or places where the principal of (and premium, if any) and interest, if any, on the Securities of the
series shall be payable; 
 (7) if applicable, the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company; 

  
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 (8) the obligation, if any, of the Company to redeem or purchase Securities of
the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation; 
 (9) if other than denominations of $1,000 and any
integral multiple thereof, the denominations in which Securities of the series shall be issuable; 
 (10) if other than the
currency of the United States, the currency or currencies, including composite currencies, in which payment of the principal of (and premium, if any) and interest on the Securities of the series shall be payable, which may be different for principal
(and premium, if any) and interest; 
 (11) if the principal of (and premium, if any) or interest, if any, on the Securities
of the series are to be payable, at the election of the Company or a Holder thereof, in a currency or currencies other than that in which the Securities are stated to be payable, the currency or currencies in which payment of the principal of (and
premium, if any) or interest, if any, on Securities of such series as to which such election is made shall be payable, and the period or periods within which, and the terms and conditions upon which, such election may be made; 

(12) if the amount of payments of principal of (and premium, if any) or interest on the Securities of the series may be
determined with reference to an index, the manner in which such amounts shall be determined; 
 (13) if other than the
principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 502; 

(14) any addition to, deletion from or change in the Events of Default specified in Section 501 which applies to the
Securities of the series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 502; 

(15) any addition to, deletion from or change in the covenants set forth in Article Ten which applies to Securities of the
series; 
 (16) the application, if any, of either or both of Section 1302 and Section 1303 to the Securities of
the series. 
 (17) whether the Securities of the series shall be issued in whole or in part in the form of one or more
Global Securities and, in such case, the Depository for such Global Security or Securities, which Depository shall be, if then required by applicable law or regulation, a clearing agency registered under the Exchange Act; 

(18) if the Securities of the series are to be convertible into or exchangeable for cash and/or any securities or other
property of any Person (including the Company), the terms and conditions upon which such Securities will be so convertible or exchangeable and 

  
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 (19) any other terms of the series (which terms shall not be inconsistent with
the provisions of this Indenture), including any covenants to be applicable to Securities of such series if not set forth herein. 
 The
Securities shall be subordinate and junior in right of payment to Senior Indebtedness, as provided in Article Fourteen. 
 All Securities of
any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 303) set forth in the Officer’s Certificate
referred to above or in any such indenture supplemental hereto. All Securities of any one series need not be issued at one time, and unless otherwise provided, a series may be reopened for issuances of additional Securities of such series. 

Unless otherwise specifically provided with respect to the Securities of a series, at the option of the Company, interest on the Securities of
any series that bears interest may be paid by mailing a check to the address of the person entitled thereto as such address shall appear in the Security Register. 

If any of the terms of Securities of a series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record
of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate setting forth the terms of the Securities of such series. If all
of the Securities of any series established by action taken pursuant to a Board Resolution are not to be issued at one time, it shall not be necessary to deliver a record of such action at the time of issuance of each Security of such series, but an
appropriate record of such action shall be delivered at or before the time of issuance of the first Security of such series. 
  

	Section 302.	Denominations. 

 The Securities of each series shall be issuable in registered form
without coupons in such denominations as shall be specified as contemplated by Section 301. In the absence of any such provisions with respect to the Securities of any particular series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof. 
  

	Section 303.	Execution, Authentication, Delivery and Dating. 

 The Securities shall be executed, by
facsimile or otherwise on behalf of the Company by its Chairman of the Board, one of its Vice Chairman, its President, its Chief Financial Officer or one of its Vice Presidents, Managing Directors or Attorneys-in-Fact and by its Secretary or one of
its Assistant Secretaries. 
 Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers
of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices a the date of such Securities. 

  
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 At any time and from time to time after the execution and delivery of this Indenture, the Company
may deliver Securities of any series executed by the Company to the Trustee or the Authenticating Agent for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee or the Authenticating
Agent in accordance with the Company Order shall authenticate and make available for delivery such Securities. If all of the Securities of any series are not to be issued at one time and if the Board Resolution or supplemental indenture establishing
such series shall so permit, such Company Order may set forth procedures acceptable to the Trustee for the issuance of such Securities and determining the terms of particular Securities of such series, such as interest rate, maturity date, date of
issuance and date from which interest shall accrue. In authenticating Securities of any series, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee or the Authenticating Agent, as the case
may be, shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating, 

(a) if the form of such Securities has been established by or pursuant to a Board Resolution as permitted by Section 201,
that such form has been established in conformity with the provisions of this Indenture; 
 (b) if the terms of such
Securities have been established by or pursuant to a Board Resolution as permitted by Section 301, that such terms have been established in conformity with the provisions of this Indenture; and 

(c) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject
to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equitable principles (whether considered a proceeding in equity or at law) and, if applicable, to provisions of law which may require
that a judgment for money damages rendered by a court in the United States be expressed in United States dollars. 
 If such forms or terms have been so
established, the Trustee or the Authenticating Agent, as the case may be, shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s or the Authenticating
Agent’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee or the Authenticating Agent. 

Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officer’s Certificate otherwise required pursuant to Section 301 or the Company Order and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior
to the time of authentication of each Security of such series if such documents are delivered at or prior to the time of authentication upon original issuance of the first Security of such series 

  
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to be issued. After the original issuance of the first Security of such series to be issued, any separate request by the Company that the Trustee authenticate Securities of such series for
original issuance will be deemed to be a certification by the Company that it is in compliance with all conditions precedent provided for in this Indenture relating to the authentication and delivery of such Securities. 

Each Security shall be dated the date of its authentication. 

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for herein executed by the Trustee or the Authenticating Agent by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued
and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309 together with a written statement (which need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to
the benefits of this Indenture. 
  

	Section 304.	Temporary Securities. 

 Pending the preparation of definitive Securities of any series,
the Company may execute, and upon Company Order the Trustee or the Authenticating Agent shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, reproduced or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities. 
 If temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender
of the temporary Securities of such series at the office or agency of the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the Company
shall execute, and the Trustee shall authenticate and make available for delivery, in exchange therefor a like principal amount of definitive Securities of the same series and tenor of authorized denominations. Until so exchanged the temporary
Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series. 

  
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	Section 305.	Registration, Registration of Transfer and Exchange. 

 The Company shall cause to be kept
at the corporate trust office of the Security Registrar designated pursuant to this Section 305 a register (the register maintained in such office being herein sometimes referred to as the “Security Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Bank of New York Mellon is hereby initially appointed “Security Registrar” for the purpose of
registering Securities and transfers of Securities as herein provided. 
 Upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and make available for delivery, in the name of the designated transferee or transferees, one or more new Securities
of the same series, of any authorized denominations and of a like tenor and aggregate principal amount. 
 At the option of the Holder,
Securities of any series may be exchanged for other Securities of the same series, of any authorized denominations and of a like tenor and aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and make available for delivery, the Securities which the Holder making the exchange is entitled to receive. 

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange. 

Every Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing. 

No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer. 

The Company shall not be required (i) to issue, register the transfer of or exchange any Security during a period beginning at the
opening of business 15 days before any selection for redemption of Securities of like tenor and of the series of which such Security is a part and ending at the close of business on the earliest date on which the relevant notice of redemption is
deemed to have been given to all Holders of Securities of such series to be redeemed, or (ii) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part. 
 Notwithstanding the foregoing, any Global Security representing a series of Securities shall be exchangeable
pursuant to this Section 305 for Securities registered in the names of Persons other than the Depository or its nominee only if (i) subject to any other terms of the 

  
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series applicable to such Global Security, such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository
ceases to be a clearing agency registered under the Exchange Act at a time when such Depository is required to be so registered to act as such Depository, (ii) the Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so exchangeable or (iii) there shall have occurred and be continuing an Event of Default or an event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default with respect to the
Securities. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as such Depository shall direct. 

Notwithstanding any other provision in this Indenture, a Global Security may not be transferred except as a whole by the Depository with
respect to such Global Security to a nominee of such Depository or by a nominee of such Depository to such Depository or another nominee of such Depository. Unless otherwise provided as contemplated by Section 301 with respect to any series of
Securities evidenced in whole or in part by a Global Security, the Depository may not sell, assign, transfer or otherwise convey any beneficial interest in a Global Security evidencing all or part of the Securities of such series unless such
beneficial interest is in an amount equal to an authorized denomination for Securities of such series. 
  

	Section 306.	Mutilated, Destroyed, Lost and Stolen Securities. 

 If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding. 
 If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss
or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security of the same series, pay such Security. 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder. 

  
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 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
  

	Section 307.	Payment of Interest; Interest Rights Preserved. 

 Unless otherwise provided as
contemplated by Section 301 with respect to any series of Securities, interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. 
 Any interest
on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular
Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or (2) below: 

(1) The Company may elect to make payment of any Defaulted Interest to the Person or Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee
in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it appears in the Security Register, not
less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2). 

  
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 (2) The Company may make payment of any Defaulted Interest on the Securities of
any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee. 
 Subject to
the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Security. 
  

	Section 308.	Persons Deemed Owners. 

 Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any)
and (subject to Section 307) interest on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary. 
 Notwithstanding the foregoing, with respect to any Global Security, nothing herein shall prevent the Company, the
Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by a Depository or impair, as between a Depository and holders of beneficial interests in any Global
Security, the operation of customary practices governing the exercise of the rights of the Depository as Holder of such Global Security. 
  

	Section 309.	Cancellation. 

 All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any
Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be destroyed by the Trustee and a certificate of destruction shall be delivered to the Company. 

  
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	Section 310.	Computation of Interest. 

 Except as otherwise specified as contemplated by
Section 301 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months. 
  

	Section 311.	CUSIP Numbers. 

 The Company in issuing any series of the Securities may use
“CUSIP” or “ISIN” numbers and/or other similar numbers to identify such Securities, if then generally in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice of redemption with respect
to such series; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities of such series or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Securities of such series, and any such redemption shall not be affected by any defect in or omission of such numbers. 

ARTICLE FOUR: 

SATISFACTION AND DISCHARGE 

 

	Section 401.	Satisfaction and Discharge of Indenture. 

 This Indenture shall upon request by the
Company cease to be of further effect with respect to any series of Securities (except as to any surviving rights of registration of transfer or exchange of Securities of such series herein expressly provided for), and the Trustee, upon Company
Request and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series, when 

(1) either 

(A) all Securities of such series theretofore authenticated and delivered (other than (i) Securities which have been
mutilated, destroyed, lost or stolen and which have been replaced or paid as provided in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or 

(B) all such Securities of such series not theretofore delivered to the Trustee for cancellation 

(i) have become due and payable, or 

(ii) will become due and payable at their Stated Maturity within one year, or 

  
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 (iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, 
 and the
Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be; 
 (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to
such series; and 
 (3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to such series have been complied with. 

Notwithstanding the satisfaction and discharge of this Indenture with respect to such series, the obligations of the Company to the Trustee
under Section 607, the obligations of the Trustee to any Authenticating Agent under Section 614 and, if money or U.S. Government Obligations shall have been deposited with the Trustee (or another trustee satisfying the conditions of
Section 609) in accordance with Section 1302, the obligations of the Company to the Trustee (or other qualifying trustee) under the fourth paragraph of Section 1305, and, if money shall have been deposited with the Trustee pursuant to
subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 1003 shall survive with respect to such series. 

 

	Section 402.	Application of Trust Money. 

 Subject to the provisions of the last paragraph of
Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the provisions of the applicable series of Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest, if any, for whose payment such money has
been deposited with the Trustee; but such money need not be segregated from other funds except as required by law. 
 ARTICLE FIVE: 

REMEDIES 
  

	Section 501.	Events of Default. 

 Except as may be otherwise provided pursuant to Section 301 for
Securities of any series, “Event of Default,” wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default and whether it shall be

  
 29 

 
occasioned by the provisions of Article Fourteen or be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body): 
 (1) the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of all or substantially all of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or 

(2) the commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or the consent by the Company to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of
the Company or of all or substantially all of its property, or the making by the Company of an assignment for the benefit of creditors, or the admission by the Company in writing of its inability to pay its debts generally as they become due, or the
taking of corporate action by the Company in furtherance of any such action; or 
 (3) any other Event of Default provided
with respect to Securities of that series. 
  

	Section 502.	Acceleration of Maturity; Rescission and Annulment. 

 Except as may be otherwise provided
pursuant to Section 301 for Securities of any series, if an Event of Default with respect to Securities of any series at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities of that series may declare the principal amount (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of
that series) of all of the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall
become immediately due and payable, except that no such declaration shall be required upon the occurrence of an Event of Default specified in Section 501(2). If an Event of Default specified in Section 501(2) with respect to the Securities
of any series at the time Outstanding occurs, the principal amount of all the Securities of such series (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the
terms of that series), together with any accrued and unpaid interest thereon, shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. Upon payment of such amount,
all obligations of the Company in respect of the payment of principal and interest of the Securities of such series shall terminate. 

Except as may be otherwise provided pursuant to Section 301 for Securities of any series, at any time after such a declaration of
acceleration with respect to Securities of any series has 

  
 30 

 
been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences, and any Event of Default giving rise to such declaration shall not be deemed to have occurred,
if 
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all
Securities of that series, (B) the principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in
such Securities, (C) to the extent that payment of such interest is lawful, interest, if any, upon overdue interest at the rate or rates prescribed therefor in such Securities, and (D) all sums paid or advanced by the Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
 (2) all
Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in
Section 513 or otherwise remedied. 
 No such rescission shall affect any subsequent default or impair any right consequent thereon. 

Upon receipt by the Trustee of any written notice declaring such an acceleration, or rescission and annulment thereof, with respect to
Securities of a series all or part of which is represented by a Global Security, a record date shall be established for determining Holders of Outstanding Securities of such series entitled to join in such notice, which record date shall be at the
close of business on the day the Trustee receives such notice. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such
record date; provided, that unless such declaration of acceleration, or rescission and annulment, as the case may be, shall have become effective by virtue of the requisite percentage having joined in such notice prior to the day which is 90
days after such record date, such notice of declaration of acceleration, or rescission and annulment, as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph
shall prevent a Holder, or a proxy of a Holder, from giving, after expiration of such 90-day period, a new written notice of declaration of acceleration, or rescission or annulment thereof, as the case may be, that is identical to a written notice
which has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section 502. 

 

	Section 503.	Collection of Indebtedness and Suits for Enforcement by Trustee. 

 The Company covenants
that if: 
 (1) default is made in the payment of any interest on any Security when such interest becomes due and payable and
such default continues for a period of 30 days, 

  
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 (2) default is made in the payment of the principal of (or premium, if any, on)
any Security at the Maturity thereof, or 
 (3) default is made in the making or satisfaction of any sinking fund payment or
analogous obligation when the same becomes due pursuant to the terms of any Security and such default continues for 5 days; 
 the Company will, upon demand
of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal, including any sinking fund payment or analogous obligations (and premium, if any) and interest and,
to the extent that the payment of such interest shall be legally enforceable, interest on any overdue principal including any sinking fund payment or analogous obligations (and premium, if any) and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee
of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such
Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 

If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  

	Section 504.	Trustee May File Proofs of Claim. 

 In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for
the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, 

(i) to file and prove a claim for the whole amount of principal (and premium, if any) and interest, if any, owing and unpaid in
respect of the Securities of all series and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and 
 (ii) to collect and
receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 

  
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 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607. 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any
plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

 

	Section 505.	Trustee May Enforce Claims Without Possession of Securities. 

 All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name and as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
  

	Section 506.	Application of Money Collected. 

 Any money collected by the Trustee pursuant to this
Article shall, subject to the subordination provisions set forth in Article Fourteen hereof, be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or
premium, if any) or interest, if any, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

FIRST: To the payment of all amounts due the Trustee under Section 607; and 

SECOND: To the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest,
if any, on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if
any) and interest, if any, respectively. 

  
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	Section 507.	Limitation on Suits. 

 No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless 

(1) such Holder has previously given written notice to the Trustee of a continuing Event of Default or an event which, with the
giving of notice or lapse of time, or both, would constitute an Event of Default with respect to the Securities of that series; 

(2) the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written
request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 

(3) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request; 
 (4) the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity has failed to institute any such proceeding; and 
 (5) no direction inconsistent with such written request has
been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series; 
 it
being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders,
or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all of such Holders. 

 

	Section 508.	Unconditional Right of Holders to Receive Principal, Premium and Interest. 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of (and premium, if any) and (subject to Section 307) interest, if any, on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
  

	Section 509.	Restoration of Rights and Remedies. 

 If the Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as
though no such proceeding had been instituted. 

  
 34 

	Section 510.	Rights and Remedies Cumulative. 

 Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  

	Section 511.	Delay or Omission Not Waiver. 

 No delay or omission of the Trustee or of any Holder of
any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or
by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
  

	Section 512.	Control by Holders. 

 The Holders of a majority in principal amount of the
Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that 
 (1) such direction shall not be in conflict with any rule of law or
with this Indenture, and 
 (2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent
with such direction. 
 Upon receipt by the Trustee of any written notice directing the time, method or place of conducting any such
proceeding or exercising any such trust or power with respect to Securities of a series all or part of which is represented by a Global Security, a record date shall be established for determining Holders of Outstanding Securities of such series
entitled to join in such notice, which record date shall be at the close of business on the day the Trustee receives such notice. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in
such notice, whether or not such Holders remain Holders after such record date; provided, that unless Holders of a majority in principal amount of the Outstanding Securities of such series shall have joined in such notice prior to the day
which is 90 days after such record date, such notice shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after
expiration of such 90-day period, a new notice identical to a notice which has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section 512.

  
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	Section 513.	Waiver of Past Defaults. 

 The Holders of not less than a majority in principal amount of
the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its consequences, except a default in the payment of the principal of (or
premium, if any) or interest, if any, on any Security of such series. 
 The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to waive any past default hereunder. If a record date is fixed, the Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to waive any default
hereunder, whether or not such Holders remain Holders after such record date; provided, that unless such majority in principal amount shall have waived such default prior to the date which is 90 days after such record date, any such waiver of
such default previously given shall automatically and without further action by any Holder be canceled and of no further effect. 

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
  

	Section 514.	Undertaking for Costs. 

 In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess reasonable costs
against any such party litigant, in the manner and to the extent provided in the Trust Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to
make such an assessment in any suit instituted by the Company. 
 ARTICLE SIX: 

THE TRUSTEE 
  

	Section 601.	Certain Duties and Responsibilities. 

 (a) Except during the continuance of an Event of
Default, 
 (1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
 (2) in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture. 

  
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 (b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise such
of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

(c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own wilful misconduct, except that 
 (1) this Subsection shall not be construed to limit the
effect of Subsection (a) of this Section; 
 (2) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 

(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of a majority in principal amount of the Outstanding Securities of any series, determined as provided in Section 512, relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; and 

(4) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it. 
 (d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 
  

	Section 602.	Notice of Defaults. 

 Within 90 days after the occurrence of any default hereunder known
to the Trustee with respect to Securities of any series, the Trustee shall give the Holders of Securities of such series notice of such default as and to the extent provided by the Trust Indenture Act. For the purpose of this Section, the term
“default” means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series. 

  
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	Section 603.	Certain Rights of Trustee. 

 Subject to the provisions of Section 601: 

(a) the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (c) whenever in the administration of this
Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officer’s Certificate; 
 (d) the Trustee may consult with counsel and the written advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

(e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction; 
 (f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or
attorney; and 
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

 

	Section 604.	Not Responsible for Recitals or Issuance of Securities. 

 The recitals contained herein
and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Trustee or any Authenticating Agent assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be accountable for the use or application by the Company of Securities or the proceeds thereof. 

  
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	Section 605.	May Hold Securities. 

 The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same rights it would have
if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent. 
  

	Section 606.	Money Held in Trust. 

 Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 

 

	Section 607.	Compensation and Reimbursement. 

 The Company agrees 

(1) to pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 

(2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and 
 (3) to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
  

	Section 608.	Disqualifications; Conflicting Interests. 

 If the Trustee has or shall acquire a
conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more than one series or any other indenture
between the Trustee and the Company. 
  

	Section 609.	Corporate Trustee Required; Eligibility. 

 There shall at all times be a Trustee
hereunder which shall be a corporation organized and doing business under the laws of the United States of America, any State or Territory thereof or 

  
 39 

 
the District of Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by
Federal, State, Territorial or District of Columbia authority and having its Corporate Trust Office in the Borough of Manhattan, The City of New York. If such corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 

 

	Section 610.	Resignation and Removal; Appointment of Successor. 

 (a) No resignation or removal of the
Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 611. 

(b) The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company.
If the instrument of acceptance by a successor Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
 (c) The Trustee may be removed at
any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to the Company. 

(d) If at any time: 

(1) the Trustee shall fail to comply with Section 608 after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security for at least six months, or 
 (2) the Trustee shall cease to be eligible under
Section 609 and shall fail to resign after written request therefor by the Company or by any such Holder, or 
 (3) the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation, 
 then, in any such case, (i) the Company by a Board Resolution may remove the Trustee
with respect to all securities, or (ii) subject to Section 514, any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees. 

  
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 (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series) and
shall comply with the applicable requirements of Section 611. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 611, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

(f) The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series by mailing written notice of such event by first-class mail, postage prepaid, to all Holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office. 
  

	Section 611.	Acceptance of Appointment by Successor. 

 (a) In case of the appointment hereunder of a
successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 
 (b) In case of the
appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor
Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such 

  
 41 

 
successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to
or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees cotrustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and
delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates. 
 (c) Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraphs (a) and (b) of this Section, as the case may be. 

(d) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article. 
  

	Section 612.	Merger, Conversion, Consolidation or Succession to Business. 

 Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all
the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on
the part of any of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 
  

	Section 613.	Preferential Collection of Claims Against Company. 

 If and when the Trustee shall be or
become a creditor of the Company (or any other obligor upon the Securities of any series), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company. 

  
 42 

	Section 614.	Appointment of Authenticating Agent. 

 As of the date of the Indenture and at any time
when any of the Securities remain Outstanding the Trustee may appoint an Authenticating Agent or Agents (which may be an Affiliate or Affiliates of the Company) with respect to one or more series of Securities which shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series issued upon original issuance, exchange, registration of transfer or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the United States of America, any State or Territory thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal, State, Territorial or District of Columbia authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section. 
 Any corporation into which an
Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation, to which such Authenticating Agent shall be a party, or any corporation succeeding to
the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent. 
 An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice or
resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable
to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the
Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating
Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 

  
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 The Company agrees to pay each Authenticating Agent from time to time reasonable compensation for
its services under this Section. 
 The Bank of New York Mellon is initially designated as the Authenticating Agent for the Securities. 

ARTICLE SEVEN: 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE
AND COMPANY 
  

	Section 701.	Company to Furnish Trustee Names and Addresses of Holders. 

 If and for so long as the
Trustee shall not be the Security Registrar for the Securities of any series, the Company will furnish or cause to be furnished to the Trustee 

(a) semi-annually, not more than fifteen days after each Regular Record Date, or, in the case of any series of Securities on
which no interest is payable, not more than fifteen days after each coupon date or other date specified by the Trustee, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of such series as of such
Record Date, and 
 (b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the
Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished. 
  

	Section 702.	Preservation of Information; Communications to Holders. 

 (a) The Trustee shall preserve,
in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 701 and the names and addresses of Holders received by the Trustee if and so
long as it is acting as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701 upon receipt of a new list so furnished. 

(b) The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities of any
series, and the corresponding rights and privileges of the Trustee, shall be as provided in the Trust Indenture Act. 
 (c) Every Holder of
Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of the disclosure of any such information as to the
names and addresses of the Holders made pursuant to the Trust Indenture Act. 

  
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	Section 703.	Reports by Trustee. 

 (a) The Trustee shall transmit to Holders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. 

(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which
any Securities are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange. 
  

	Section 704.	Reports by Company. 

 The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports as may be required by the Trust Indenture Act; provided that any such information, documents or reports filed electronically with the Commission pursuant to Section 13 or
15(d) of the Exchange Act shall be deemed filed with, and delivered to, the Trustee and transmitted to the Holders at the same time as filed with the Commission. Delivery of such reports, information and documents to the Trustee and transmission
thereof to the Holders is for informational purposes only and shall not constitute a representation or warranty as to the accuracy or completeness of the reports, information or documents. The Trustee’s receipt of such reports, information or
documents shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on an Officer’s Certificate). 
 ARTICLE EIGHT: 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

  

	Section 801.	Company May Consolidate, Etc., Only on Certain Terms. 

 Except as may be otherwise
provided pursuant to Section 301 for Securities of any series, the Company shall not consolidate or merge with any other Person or convey, transfer or lease all or substantially all of its properties and assets to any other Person, unless: 

(1) the Person formed by such consolidation or merger or the Person which acquires by conveyance or transfer, or which leases,
all or substantially all of the properties and assets of the Company shall be a corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and such successor Person (if not the
Company) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of (and premium, if any) and interest on all the
Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed; 

  
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 (2) immediately after giving effect to such transaction, no Event of Default and
no event which, after notice or lapse of time or both, would become an Event of Default shall have happened and be continuing; and 

(3) if requested by the Trustee, the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied
with. 
  

	Section 802.	Successor Corporation Substituted. 

 Upon any such consolidation or merger with any other
Person or any conveyance, transfer or lease of all or substantially all the properties and assets of the Company in accordance with Section 801, the successor Person formed by such consolidation or merger or to which such conveyance, transfer
or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in
the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 

ARTICLE NINE: 

SUPPLEMENTAL INDENTURES 
  

	Section 901.	Supplemental Indentures Without Consent of Holders. 

 Without the consent of any Holders,
the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 

(1) to evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants
of the Company herein and in the Securities; or 
 (2) to add to the covenants of the Company for the benefit of the Holders
of all or any series of Securities (and if such covenants are to be for the benefit of fewer than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or
power herein conferred upon the Company; or 
 (3) to add any additional Events of Default; or 

(4) to add to or change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate
the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons, or to permit or facilitate the issuance of Securities in certificated form or global form; or 

  
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 (5) to add to, change or eliminate any of the provisions of this Indenture in
respect of all or any Securities of any series (and if such addition, change or elimination is to apply with respect to less than all Securities of any series, stating that it is expressly being made to apply solely with respect to such Securities
within such series), provided that any such addition, change or elimination (A) shall neither (i) apply to any Security issued prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor
(ii) modify the rights of any Holder of any such Security with respect to such provision or (B) shall become effective only when there is no such Security Outstanding; or 

(6) to conform the text of this Indenture or the Securities of any series to any provision of the section entitled
“Description of Debt Securities” or any similarly captioned section in the prospectus, as supplemented by any applicable prospectus supplement, relating to the offering of such series of Securities; or 

(7) to secure the Securities of any series or provide for guarantees of the Securities of any series; or 

(8) to establish the form or terms of Securities of any series as permitted by Sections 201 and 301; or 

(9) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities
of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 611(b); or 
 (10) to cure any ambiguity, to correct or supplement any provision in the Indenture which may be
inconsistent with any other provision in the Indenture, or to make any other provisions as the Company may find necessary or desirable, provided such action shall not adversely affect the interests of the Holders of Securities of any series in any
material respect. 
  

	Section 902.	Supplemental Indentures with Consent of Holders. 

 With the consent of the Holders
of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange for Securities), by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby, 
 (1) change the Stated Maturity of the principal of, or
any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of, or method of computation of the rate of, interest thereon or any premium payable upon the

  
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redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 502, or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation, or change any Place of Payment where, or the coin or currency in which, any Security or any premium of the
interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or 

(2) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture,
or 
 (3) modify any of the provisions of this Section, Section 513 or Section 1006, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby, provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the references to the “Trustee,” and concomitant changes in this Section and Section 1006, or the deletion of this proviso, in accordance with the requirements of Sections
611(b) and 901(9). 
 A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of Securities of any other series. 
 The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any indenture supplemental hereto. If a record date is fixed, the Holders on such record date or their duly designated proxies, and only such Persons, shall be entitled to consent to such
supplemental indenture, whether or not such Holders remain Holders after such record date; provided, that unless such consent shall have become effective by virtue of the requisite percentage having been obtained prior to the date which is 90
days after such record date, any such consent previously given shall automatically and without further action by any Holder be canceled and of no further effect. 

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof. 
  

	Section 903.	Execution of Supplemental Indentures. 

 In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee may receive, and (subject to Section 601) shall be fully protected in relying upon, an

  
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Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
  

	Section 904.	Effect of Supplemental Indentures. 

 Upon the execution of any supplemental indenture
under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby. 
  

	Section 905.	Conformity with Trust Indenture Act. 

 Every supplemental indenture executed pursuant to
this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 
  

	Section 906.	Reference in Securities to Supplemental Indentures. 

 Securities of any series
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series. 
 ARTICLE TEN: 

COVENANTS 
  

	Section 1001.	Payment of Principal, Premium and Interest. 

 The Company covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay the principal of (and premium, if any) and interest on the Securities of that series in accordance with the terms of the Securities and this Indenture. 

The Company shall have the right to require a Holder, in connection with the payment of the principal of (and premium, if any) or interest, if
any, on a Security, to present at the office or agency of the Company at which such payment is made a certificate, in such form as the Company may from time to time prescribe, to enable the Company to determine its duties and liabilities with
respect to any taxes, assessments or governmental charges which it may be required to deduct or withhold therefrom under any present or future law of the United States of America or of any State, County, Municipality or taxing authority therein, and
the Company shall be entitled to determine its duties and liabilities with respect to such deduction or withholding on the basis of information contained in such certificate or, if no such certificate shall be so presented, on the basis of any
presumption created by any such law, and shall be entitled to act in accordance with such determination. Notwithstanding anything to the contrary 

  
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contained in this Indenture, the Company or the Paying Agent may, to the extent it is required to do so by law, deduct or withhold taxes imposed by the United States of America or other domestic
or foreign taxing authorities from the principal of (and premium, if any) and interest payments hereunder. 
  

	Section 1002.	Maintenance of Office or Agency. 

 The Company will maintain in the Borough of Manhattan,
The City of New York and in each Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered for payment (provided, however, that, unless otherwise provided
with respect to any series of Securities, at the option of the Company payment of interest may be made by check mailed to the address of the person entitled thereto as such address shall appear in the Security Register), where Securities of that
series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be served. The Company initially appoints The Bank of New York
Mellon as its agent for purposes of presentation and surrender of Securities for payment, registration of transfer or exchange and for service of notices and demands to or upon the Company in respect of the Securities of a series and this Indenture.
The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands. 
 The Company may also from time to time designate one or more other offices or agencies where the
Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of Manhattan, The City of New York and in each Place of Payment for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or agency. 
  

	Section 1003.	Money for Securities Payments to Be Held in Trust. 

 If the Company shall at any time act
as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest on any of the Securities of that series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act. 
 Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, prior to
each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust
for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

  
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 The Company will cause each Paying Agent for any series of Securities other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 

(1) hold all sums held by it for the payment of the principal of (and premium, if any) or interest on Securities of that series
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 

(2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of that series) in the
making of any payment of principal of (and premium, if any) or interest on the Securities of that series; and 
 (3) at any
time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and
premium, if any) or interest on any Security of any series and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured subordinated creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. 
  

	Section 1004.	Corporate Existence. 

 Except as permitted by the provisions of Article Eight, the
Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and material rights (charter and statutory) and material franchises of the Company; provided, however, that the
Company shall not be required to preserve any such right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries considered as a
whole, and that the loss thereof is not disadvantageous in any material respect to the Holders. 

  
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	Section 1005.	Statement as to Compliance. 

 The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company commencing with the fiscal year ending December 31, 2010, or, if later, December 31 of the first year during which Securities are Outstanding under this Indenture, a written statement, which
need not comply with Section 102, signed by an Officer of the Company stating that 
 (1) a review of the activities of
the Company during such year and of performance under this Indenture has been made under his supervision, and 
 (2) to the
best of his knowledge, based on such review, (a) the Company has fulfilled all its obligations under this Indenture throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default
known to him and the nature and status thereof, and (b) no event has occurred and is continuing which is, or after notice or lapse of time or both would become, an Event of Default, or, if such an event has occurred and is continuing,
specifying each such event known to him and the nature and status thereof. 
  

	Section 1006.	Waiver of Certain Covenants. 

 The Company may omit in any particular instance to comply
with any term, covenant or condition set forth in Sections 1004 and 1005 with respect to the Securities of any series if before the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Securities of such
series shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such term, covenant or condition, but no such waiver shall extend to or affect such term, covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, covenant or condition shall remain in full force and effect. 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to waive any such term,
provision or condition. If a record date is fixed, the Holders on such record date or their duly designated proxies, and only such Persons, shall be entitled to waive any such term, provision or condition hereunder, whether or not such Holders
remain Holders after such record date; provided, that unless the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall have waived such term, provision or condition prior to the date which is 90
days after such record date, any such waiver previously given shall automatically and without further action by any Holder be canceled and of no further effect. 

  
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 ARTICLE ELEVEN: 

REDEMPTION OF SECURITIES 

 

	Section 1101.	Applicability of Article. 

 Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 301 for Securities of any series) in accordance with this Article. 

 

	Section 1102.	Election to Redeem; Notice to Trustee. 

 The election of the Company to redeem any
Securities shall be evidenced by a Board Resolution or an Officer’s Certificate or in another manner specified as contemplated by Section 301 for such Securities. In case of any redemption at the election of the Company of fewer than all
the Securities of any series, the Company shall, at least 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the tenor, if
applicable, of the Securities to be redeemed, and of the principal amount of Securities of such series to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such restriction. 
  

	Section 1103.	Selection by Trustee of Securities to Be Redeemed. 

 If fewer than all the Securities of
any series are to be redeemed (unless all of the Securities of a specified tenor are to be redeemed), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series subject to such redemption and not previously called for redemption, by such method as the Trustee shall deem fair and appropriate (but subject to compliance with the rules of any securities exchange on which the securities
of such series may be listed) and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of
such series of a denomination larger than the minimum authorized denomination for Securities of that series. If fewer than all of the Securities of such series and of a specified tenor are to be redeemed, the particular Securities to be redeemed
shall be selected not more than 45 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series and specified tenor not previously called for redemption in accordance with the preceding sentence. 

The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Securities selected
for partial redemption, the principal amount thereof to be redeemed. 
 For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed.

  
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	Section 1104.	Notice of Redemption. 

 Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register. 

All notices of redemption shall state: 

(1) the Redemption Date, 

(2) the Redemption Price, 

(3) if fewer than all the Outstanding Securities of any series are to be redeemed, the identification (and, in the case of
partial redemption, the principal amounts) of the particular Securities to be redeemed, 
 (4) the CUSIP or ISIN number of
the Securities to be redeemed, 
 (5) that on the Redemption Date the Redemption Price will become due and payable upon each
such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after said date, 
 (6)
the place or places where such Securities are to be surrendered for payment of the Redemption Price, and 
 (7) that the
redemption is for a sinking fund, if such is the case. 
 Notice of redemption of Securities to be redeemed at the election of the Company
shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company. 
  

	Section 1105.	Deposit of Redemption Price. 

 Prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date. 
  

	Section 1106.	Securities Payable on Redemption Date. 

 Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to
the Redemption Date; provided, however, that installments of interest whose Stated Maturity is on or 

  
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prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 307. 
 If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security. 

 

	Section 1107.	Securities Redeemed in Part. 

 Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such Security without service charge, a new Security or Securities of the same series and of
like tenor, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. If a Global Security is so surrendered, such
new Security so issued shall be a new Global Security. 
 ARTICLE TWELVE: 

SINKING FUNDS 
  

	Section 1201.	Applicability of Article. 

 The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 301 for Securities of such series. 

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a
“mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment”. If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms
of Securities of such series. 
  

	Section 1202.	Satisfaction of Sinking Fund Payments with Securities. 

 The Company (1) may deliver
Outstanding Securities of a series (other than any previously called for redemption) and (2) may apply as a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be
made pursuant to the terms of such Securities as provided for by the terms of such series; provided that such Securities have not 

  
 55 

 
been previously so credited; provided further that, in the case of (1) above, with respect to any Outstanding Securities so delivered, and in the case of (2) above, with respect
to any such Securities so credited, such Outstanding Securities or Securities, as the case may be, be Securities subject to the sinking fund payment required to be made with respect to the Securities of such series. Such Securities shall be received
and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. 

 

	Section 1203.	Redemption of Securities for Sinking Fund. 

 Not less than 60 days prior to each sinking
fund payment date for any series of Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202 and will also deliver to the Trustee any
Securities to be so delivered. Not less than 45 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause notice
of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 1104. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107. 
 ARTICLE THIRTEEN: 

DEFEASANCE AND COVENANT DEFEASANCE 

 

	Section 1301.	Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance. 

If pursuant to Section 301 provision is made for either or both of (a) defeasance of the Securities of a series under
Section 1302 or (b) covenant defeasance of the Securities of a series under Section 1303, then the provisions of such Section or Sections, as the case may be, together with the other provisions of this Article Thirteen, shall be
applicable to the Securities of such series, and the Company may at its option by Board Resolution, at any time, with respect to the Securities of such series, elect to have either Section 1302 (if applicable) or Section 1303 (if
applicable) be applied to the Outstanding Securities of such series upon compliance with the conditions set forth below in this Article Thirteen. 
  

	Section 1302.	Defeasance and Discharge. 

 Upon the Company’s exercise of the above option
applicable to this Section, the Company shall be deemed to have been discharged from its obligations, and the provisions of Article Fourteen shall cease to be effective, with respect to the Outstanding Securities of such series on and after the date
the conditions precedent set forth below are satisfied but subject to satisfaction of the conditions subsequent set forth below (hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by the Outstanding Securities of such series and to have 

  
 56 

 
satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of the series of Securities defeased pursuant to this Section 1302 to receive,
solely from the trust fund described in Section 1304 and as more fully set forth in such Section, payments of the principal of (and premium, if any) and interest on such Securities when such payments are due, (B) the Company’s
obligations with respect to such Securities under Sections 304, 305, 306, 1002 and 1003 and such obligations as shall be ancillary thereto, (C) the rights, powers, trusts, duties, immunities and other provisions in respect of the Trustee
hereunder and (D) this Article Thirteen. Subject to compliance with this Article Thirteen, the Company may exercise its option under this Section 1302 notwithstanding the prior exercise of its option under Section 1303 with respect to
the Securities of such series. Following a defeasance, payment of the Securities of such series may not be accelerated because of an Event of Default. 
  

	Section 1303.	Covenant Defeasance. 

 Upon the Company’s exercise of the above option applicable to
this Section, (1) the Company shall be released from its obligations under Section 1004 (and any other Sections applicable to such Securities that are determined pursuant to Section 301 to be subject to this provision) and
(2) the provisions of Article Fourteen shall cease to be effective, in each case with respect to the Outstanding Securities of such series on and after the date the conditions precedent set forth below are satisfied but subject to satisfaction
of the conditions subsequent set forth below (hereinafter, “covenant defeasance”). For this purpose, such covenant defeasance means that, with respect to the Outstanding Securities of such series, the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any such Section, whether directly or indirectly by reason of any reference elsewhere herein to any such Section or by reason of any reference in any such Section
to any other provision herein or in any other document, but the remainder of this Indenture and such Securities shall be unaffected thereby. Following a covenant defeasance, payment of the Securities of such series may not be accelerated because of
an Event of Default specified by reference to such Sections as are specified above in this Section 1303. 
  

	Section 1304.	Conditions to Defeasance or Covenant Defeasance. 

 The following shall be the conditions
precedent or, as specifically noted below, subsequent to application of either Section 1302 or Section 1303 to the Outstanding Securities of such series: 

(1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 609 who shall agree to comply with the provisions of this Article Thirteen applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an amount, or (C) a 

  
 57 

 
combination thereof, sufficient, without reinvestment, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (i) the principal of (and premium, if any) and interest on the Outstanding Securities of such series to maturity or
redemption, as the case may be, and (ii) any mandatory sinking fund payments or analogous payments applicable to the Outstanding Securities of such series on the due dates thereof. Before such a deposit the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date or dates in accordance with Article Eleven, which shall be given effect in applying the foregoing. For this purpose, “U.S. Government Obligations” means
securities that are (x) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (y) obligations of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or
interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt. 
 (2) No Event of Default or event which with notice or lapse of time or both would become an Event of
Default with respect to the Securities of such series shall have occurred and be continuing (A) on the date of such deposit or (B) insofar as Sections 501(1) and 501(2) are concerned, at any time during the period ending on the 90th day
after the date of such deposit (it being understood that the condition in this clause (B) is a condition subsequent and shall not be deemed satisfied until the expiration of such 90 day period). 

(3) Such defeasance or covenant defeasance shall not (A) cause the Trustee for the Securities of such series to have a
conflicting interest within the meaning of the Trust Indenture Act or for purposes of the Trust Indenture Act with respect to any securities of the Company or (B) result in the trust arising from such deposit to constitute, unless it is
qualified as, a regulated investment company under the Investment Company Act of 1940, as amended. 
 (4) Such defeasance or
covenant defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound. 

(5) In the case of an election under Section 1302, the Company shall have delivered to the Trustee an Opinion of Counsel
stating that (x) the Company has received 

  
 58 

 
from, or there has been published by, the Internal Revenue Service a ruling, or (y) since the date of this Indenture there has been a change in the applicable Federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm that, the Holders of the Outstanding Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and
will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred. 

(6) In the case of an election under Section 1303, the Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that the Holders of the Outstanding Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred. 

(7) Such defeasance or covenant defeasance shall be effected in compliance with any additional terms, conditions or limitations
which may be imposed on the Company in connection therewith pursuant to Section 301. 
 (8) No event or condition shall
exist that, pursuant to the provisions of Article Fourteen, would prevent the Company from making payments of the principal of (and premium, if any) or interest on the Securities of such series on the date of such deposit or at any time on or prior
to the 90th day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until after such 90th day). 

(9) The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for relating to either the defeasance under Section 1302 or the covenant defeasance under Section 1303 (as the case may be) have been complied with. 

(10) The Company shall have delivered to the Trustee an Opinion of Counsel substantially to the effect that (x) the trust
funds deposited pursuant to this Section will not be subject to any rights of holders of Senior Indebtedness, including those arising under Article Fourteen, and (y) after the 90th day following the deposit, the trust funds will not be subject
to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally, except that if a court were to rule under any such law in any case or proceeding that the trust funds remained
property of the Company, no opinion is given as to the effect of such laws on the trust funds except the following: (A) assuming such trust funds remained in the possession of the trustee with whom such funds were deposited prior to such court
ruling to the extent not paid to Holders of such Securities, such trustee would hold, for the benefit of such Holders, a valid and perfected security interest in such trust funds that is not avoidable in bankruptcy or otherwise, (B) such
Holders would be entitled to receive adequate protection of their interests in such trust funds if such trust funds were used and (C) no property, rights in property or other interests granted to such trustee for the Trustee or such Holders in
exchange for or with respect to any such funds would be subject to any prior rights of holders of Senior Indebtedness, including those arising under Article Fourteen. 

  
 59 

	Section 1305.	Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions. 

Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee — collectively, for purposes of this Section 1305, the “Trustee”) pursuant to Section 1304 in respect of the Outstanding Securities of such series shall be
held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (but not including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, but such money need not be segregated from other funds except to the extent required by
law. 
 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the money or
U.S. Government Obligations deposited pursuant to Section 1304 or the principal and interest received in respect thereof. 
 Anything
herein to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 1304 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent defeasance or covenant
defeasance. 
 Anything herein to the contrary notwithstanding, if and to the extent the deposited money or U.S. Government Obligations (or
the proceeds thereof) either (i) cannot be applied by the Trustee in accordance with this Section because of a court order or (ii) are for any reason insufficient in amount, then the Company’s obligations to pay principal of (and
premium, if any) and interest on the Securities of such series shall be reinstated to the extent necessary to cover the deficiency on any due date for payment. In any case specified in clause (i), the Company’s interest in the deposited money
and U.S. Government Obligations (and proceeds thereof) shall be reinstated to the extent the Company’s payment obligations are reinstated. 

ARTICLE FOURTEEN: 

SUBORDINATION 
  

	Section 1401.	Agreement that the Securities be Subordinated to the Extent Provided. 

 The Company, for
itself, its successors and assigns, covenants and agrees, and each holder of a Security likewise covenants and agrees by his acceptance thereof, that the obligation of the Company to make any payment of principal of (and premium, if any) and
interest on each and all of the Securities is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, to the prior payment in full of all Senior Indebtedness. Subject to the provisions of this Article, all Securities
will rank pari passu in right of payment with all other Securities. 

  
 60 

	Section 1402.	Company Not to Make Payments with Respect to Securities in Certain Circumstances. 

 No
payment of principal of (and premium, if any) or interest on the Securities shall be made and no holder of the Securities shall be entitled to demand or receive any such payment (i) unless all amounts of principal of (and premium, if any) and
interest then due on all Senior Indebtedness shall have been paid in full or duly provided for, or (ii) if, at the time of such payment or immediately after giving effect thereto, there shall exist with respect to any Senior Indebtedness any
event of default permitting the holders thereof to accelerate the maturity thereof or any event which, with notice or lapse of time or both, would become such an event of default. 

 

	Section 1403.	Securities Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization of the Company. 

Upon any distribution of the assets of the Company in connection with the dissolution, winding up, liquidation or reorganization of the Company
(whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise), the holders of Senior Indebtedness shall first be
entitled to receive payment in full in accordance with the terms of such Senior Indebtedness of the principal thereof (and premium, if any) and the interest due thereon before the holders of the Securities are entitled to receive any payment on the
Securities. Upon any such dissolution, winding up, liquidation or reorganization, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the holders of the Securities would be
entitled except for the provisions of this Article, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of the Securities,
shall be made by the liquidating trustee or agent or other Person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account
of the principal of (and premium, if any) and interest (including interest accruing subsequent to the commencement of any proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy, insolvency, or similar law now
or hereafter in effect) on the Senior Indebtedness held or represented by each, to the extent necessary to pay in full all such Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of
such Senior Indebtedness. 
 If the holders of the Securities, or any of them, shall fail to file a proper claim in the form required in any
proceeding referred to in the first paragraph of this Section, prior to 30 days before the expiration of the time to file such claim or claims pursuant to the authority granted to the Trustee pursuant to the provisions of Section 504, then the
holders of Senior Indebtedness are hereby authorized to file an appropriate claim or claims for and on behalf of the holders of the Securities in the form required in any such proceeding. 

  
 61 

 In the event that, notwithstanding the foregoing, upon any such dissolution, winding up,
liquidation or reorganization, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company being subordinated to the payment of the Securities, shall be received by the Trustee, any paying agent or the holders of the Securities before all Senior Indebtedness is paid in full, then, subject
to the receipt by the Trustee or any paying agent of notice pursuant to Section 1407, such payment or distribution shall be held in trust for the benefit of and shall be paid over to the holders of such Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably as aforesaid for application to the payment of all Senior
Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness. 

Subject to the payment in full of all Senior Indebtedness, the holders of the Securities shall be subrogated to the rights of the holders of
such Senior Indebtedness to receive payments or distributions of assets of the Company applicable to such Senior Indebtedness until the Securities shall be paid in full, and none of the payments or distributions to the holders of such Senior
Indebtedness to which the holders of the Securities or the Trustee would be entitled except for the provisions of this Article or of payments over, pursuant to the provisions of this Article, to the holders of such Senior Indebtedness by the holders
of the Securities or the Trustee shall, as between the Company, its creditors other than the holders of such Senior Indebtedness and the holders of the Securities, be deemed to be a payment by the Company to or on account of such Senior
Indebtedness; it being understood that the provisions of Section 1402 and this Section are and are intended solely for the purpose of defining the relative rights of the holders of the Securities, on the one hand, and the holders of the Senior
Indebtedness, on the other hand. 
  

	Section 1404.	Obligation of the Company to Give Prompt Notice to Trustee; Trustee and Holders of Securities May Rely on Certificate of Liquidating Agent; Trustee May Require Further Evidence as to Ownership of Senior
Indebtedness. 

 The Company shall give prompt written notice to the Trustee of any dissolution, winding up, liquidation or
reorganization of the Company within the meaning of this Article. The Trustee, subject to the provisions of Section 601, shall be entitled to assume that no such event has occurred unless the Company or any one or more holders of Senior
Indebtedness or any trustee therefor (who shall have been certified or otherwise established to the satisfaction of the Trustee to be such a holder or trustee) has given written notice thereof to the Trustee at its Corporate Trust Office in
accordance with Section 1407. 
 Upon any distribution of assets of the Company referred to in this Article, the Trustee and the
holders of the Securities shall be entitled to rely upon any order or decree of a court of competent jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are pending for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior Indebtedness, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon, and all other facts pertinent thereto or to this Article, and the
Trustee, subject to the provisions of Article Six, and the holders of the Securities 

  
 62 

 
shall be entitled to rely upon a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the holders of the Securities for the purpose of
ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Indebtedness, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article. In the absence of notice from any liquidating trustee, agent or other Person to the contrary, the Trustee shall be entitled to rely upon a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee
or representative on behalf of such holder), as evidence that such Person is a holder of Senior Indebtedness (or is such a trustee or representative). 

In the event that the Trustee determines, in good faith, that further evidence is required with respect to the right of any Person, as a
holder of Senior Indebtedness, to participate in any payment or distribution pursuant to this Section, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior Indebtedness
held by such Person, as to the extent to which such Person is entitled to participation in such payment or distribution, and as to other facts pertinent to the rights of such Person under this Section, and if such evidence is not furnished, the
Trustee may defer any payment to such person pending judicial determination as to the right of such Person to receive such payment. 
  

	Section 1405.	Obligation of the Company Unconditional. 

 Nothing contained in this Article or elsewhere
in this Indenture or in the Securities is intended to or shall impair, as between the Company and the holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the holders of the Securities the
principal of (and premium, if any) and interest (including interest accruing subsequent to the commencement of any proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy, insolvency, or similar law now or
hereafter in effect) on the Securities as and when the same shall become due and payable in accordance with the terms thereof when required pursuant to the Securities and this Indenture, or is intended to or shall affect the relative rights of the
holders of the Securities and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the holder of any Securities from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any, under this Article of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 

 

	Section 1406.	No Fiduciary Duty to Holders of Senior Indebtedness. 

 The Trustee shall not be deemed to
owe any fiduciary duty to the holders of Senior Indebtedness, but shall have only such obligations to such holders as are expressly set forth in Sections 1403. 
  

	Section 1407.	Notice to Trustee of Facts Prohibiting Payments. 

 Notwithstanding any of the provisions
of this Article or any other provision of this Indenture, neither the Trustee nor any paying agent shall at any time be charged with knowledge 

  
 63 

 
of the existence of any facts which would prohibit the making of any payment of moneys to or by the Trustee or any such paying agent, when required pursuant to the Securities and this Indenture,
unless and until the Trustee or any such paying agent shall have received at its Corporate Trust Office written notice thereof from the Company or from one or more holders of Senior Indebtedness or from any trustee therefor, who shall have been
certified by the Company or otherwise established to the reasonable satisfaction of the Trustee to be such a holder or trustee; and, prior to the receipt of any such written notice, the Trustee or any paying agent, subject to the provisions of
Section 601, shall be entitled in all respects to assume that no such facts exist; provided, however, that, if prior to the fifth Business Day preceding the date upon which by the terms hereof any such moneys may become payable
for any purpose, or in the event of the execution of an instrument pursuant to Section 1302 acknowledging satisfaction and discharge of this Indenture, then if prior to the second Business Day preceding the date of such execution, the Trustee
or any paying agent shall not have received with respect to such moneys or such execution the notice provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Trustee or any paying agent may, in its
discretion, receive such moneys and/or apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary, which may be received by it on or after either such date, as the case may be;
provided, however, no such application shall affect the obligations under this Article of the Persons receiving such moneys from the Trustee or any paying agent. 

 

	Section 1408.	Application by Trustee of Moneys Deposited with It. 

 Anything in this Indenture to the
contrary notwithstanding, any deposit of moneys by the Company with the Trustee or any paying agent (whether or not in trust) for the payment of the principal of (and premium, if any) and interest on Securities shall, except as provided in
Section 1407, be subject to the provisions of Sections 1401, 1402 and 1403. 
  

	Section 1409.	Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior Indebtedness. 

No right of any present or future holders of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or be otherwise charged with. The holders of Senior Indebtedness may at any time or from time to time and in their absolute discretion, change the manner, place or terms of payment,
change or extend the time of payment of, or renew or alter, any such Senior Indebtedness, or amend or supplement any instrument pursuant to which any such Senior Indebtedness is issued or by which it may be secured, or release any security therefor,
or exercise or refrain from exercising any other of their rights under the Senior Indebtedness, including, without limitation, the waiver of default thereunder, all without notice to or assent from the holders of the Securities or the Trustee and
without affecting the obligations of the Company, the Trustee or the holders of the Securities under this Article. 

  
 64 

	Section 1410.	Authorization of Trustees to Effectuate Subordination of the Securities. 

 Each holder of
a Security, by his acceptance thereof, authorizes and expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate, as between the holders of Securities and the holders of Senior Indebtedness, the
subordination provided in this Article. 
  

	Section 1411.	Right of Trustee to Hold Senior Indebtedness. 

 The Trustee shall be entitled to all of
the rights set forth in this Article in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of such Senior Indebtedness, and nothing in this Indenture shall be construed to deprive the Trustee of any of
its rights as such holder. 
  

	Section 1412.	Article Fourteen Not to Prevent Defaults. 

 The failure to make a payment pursuant to the
Securities by reason of any provision in this Article shall not be construed as preventing the occurrence of a default or an Event of Default. 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument. 

  
 65 

 IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed and attested, all as of the day and year first above written. 
  

							
		 		 	JPMORGAN CHASE & CO.
				
		 		 	By	 	  

				
	Attest:	 		 		 	
				
	  
	 		 		 	
			
		 		 	U.S. BANK TRUST NATIONAL ASSOCIATION
				
		 		 	By	 	  

				
	Attest:	 		 		 	
				
	  
	 		 		 	

  
 66Purchase and Sale Agreement dated October 7, 2013

 Exhibit 10.1 

PURCHASE AND SALE AGREEMENT 

between 
 The parties designated
on Exhibit “A-1”, 
 as Sellers, 

and 
 CHP PARTNERS, LP 

as Purchaser 
 Dated as of
October 7, 2013 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
			
	I.	 	 DEFINITIONS
	  	 	1	  
			
	II.	 	 SALE AND PURCHASE OF PROPERTY
	  	 	10	  
				
		 	 2.1
	  	 Purchase of Property
	  	 	10	  
				
		 	 2.2
	  	 Purchase Price and Terms of Payment
	  	 	11	  
				
		 	 2.3
	  	 Due Diligence Period
	  	 	11	  
				
		 	 2.4
	  	 Assumption of the Leases and Contracts
	  	 	11	  
				
		 	 2.5
	  	 Assumption of the Resident Agreements
	  	 	12	  
				
		 	 2.6
	  	 Assumed Liabilities
	  	 	12	  
				
		 	 2.7
	  	 Allocation of Purchase Price
	  	 	12	  
				
		 	 2.8
	  	 Discharge of Liens
	  	 	13	  
				
		 	 2.9
	  	 Negotiation and Execution of Management Documents
	  	 	13	  
				
		 	 2.10
	  	 Negotiation and Execution of Development Framework Agreement
	  	 	13	  
				
		 	 2.11
	  	 General Contractor
	  	 	13	  
				
		 	 2.12
	  	 Assumption of Mansfield IL Loan
	  	 	14	  
			
	III.	 	 ESCROW
	  	 	16	  
				
		 	 3.1
	  	 Escrow
	  	 	16	  
				
		 	 3.2
	  	 Deposit of Funds
	  	 	16	  
			
	IV.	 	 TITLE AND SURVEY
	  	 	16	  
				
		 	 4.1
	  	 Title Examination; Commitment for Title Insurance
	  	 	16	  
				
		 	 4.2
	  	 Survey
	  	 	16	  
				
		 	 4.3
	  	 Title Objections; Cure of Title Objections
	  	 	16	  
				
		 	 4.4
	  	 Conveyance of Title
	  	 	18	  
			
	V.	 	 INSPECTIONS
	  	 	18	  
				
		 	 5.1
	  	 Purchaser’s Independent Inspection
	  	 	18	  
				
		 	 5.2
	  	 Access
	  	 	19	  
				
		 	 5.3
	  	 Confidential Nature of Due Diligence Materials
	  	 	20	  
				
		 	 5.4
	  	 Continuing Nature of Purchaser’s Obligations
	  	 	20	  
			
	VI.	 	 PROPERTY
	  	 	21	  
				
		 	 6.1
	  	 Condition of Property
	  	 	21	  
				
		 	 6.2
	  	 Survival of Article VI
	  	 	23	  

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
			
	VII.	 	 CLOSING
	  	 	23	  
				
		 	 7.1
	  	 Closing Date
	  	 	23	  
				
		 	 7.2
	  	 Action Prior to the Closing Date by Seller
	  	 	23	  
				
		 	 7.3
	  	 Action Prior to the Closing Date by Purchaser
	  	 	26	  
				
		 	 7.4
	  	 Recording of Deeds
	  	 	27	  
				
		 	 7.5
	  	 Prorations
	  	 	27	  
				
		 	 7.6
	  	 Closing Costs
	  	 	30	  
				
		 	 7.7
	  	 Possession
	  	 	31	  
				
		 	 7.8
	  	 Post-Closing Audit
	  	 	31	  
			
	VIII.	 	 ADDITIONAL COVENANTS AND INDEMNITIES
	  	 	31	  
				
		 	 8.1
	  	 Purchaser’s Covenants
	  	 	31	  
				
		 	 8.2
	  	 Seller Covenants
	  	 	32	  
				
		 	 8.3
	  	 Employee Matters
	  	 	34	  
				
		 	 8.4
	  	 Extension to Obtain Licenses
	  	 	36	  
				
		 	 8.5
	  	 Additional Extension Right
	  	 	36	  
			
	IX.	 	 REPRESENTATIONS AND WARRANTIES
	  	 	37	  
				
		 	 9.1
	  	 Purchaser’s Representations and Warranties
	  	 	37	  
				
		 	 9.2
	  	 Sellers’ Representations and Warranties
	  	 	38	  
				
		 	 9.3
	  	 Seller’s Knowledge
	  	 	41	  
				
		 	 9.4
	  	 Failure of Condition But No Seller Breach
	  	 	41	  
				
		 	 9.5
	  	 Survival Period
	  	 	41	  
			
	X.	 	 CONDITIONS PRECEDENT TO CLOSING
	  	 	42	  
				
		 	 10.1
	  	 Conditions to Sellers’ Obligations
	  	 	42	  
				
		 	 10.2
	  	 Conditions to Purchaser’s Obligations
	  	 	42	  
				
		 	 10.3
	  	 Failure of Conditions to Closing
	  	 	43	  
				
		 	 10.4
	  	 Purchase of all Facilities
	  	 	43	  
			
	XI.	 	 REMEDIES FOR PRE-CLOSING AND POST-CLOSING DEFAULTS ; LIQUIDATED DAMAGES
	  	 	44	  
				
		 	 11.1
	  	 Default by Purchaser Prior to Closing
	  	 	44	  
				
		 	 11.2
	  	 Default by Sellers Prior to Closing
	  	 	44	  
				
		 	 11.3
	  	 Limitations of Purchaser’s Post-Closing Claims
	  	 	45	  

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	 	  	Page	 
				
		 	 11.4
	  	 Survival of Purchaser’s Claims
	  	 	46	  
				
		 	 11.5
	  	 Limitations on Liability
	  	 	46	  
				
		 	 11.6
	  	 Survival
	  	 	46	  
			
	XII.	 	 FINANCIAL ADVISOR
	  	 	47	  
			
	XIII.	 	 NOTICES
	  	 	47	  
			
	XIV.	 	 MISCELLANEOUS
	  	 	49	  
				
		 	 14.1
	  	 Governing Law
	  	 	49	  
				
		 	 14.2
	  	 Exhibits and Schedules a Part of This Agreement
	  	 	49	  
				
		 	 14.3
	  	 Executed Counterparts
	  	 	49	  
				
		 	 14.4
	  	 Assignment
	  	 	49	  
				
		 	 14.5
	  	 IRS - Form 1099-S
	  	 	49	  
				
		 	 14.6
	  	 Successors and Assigns
	  	 	50	  
				
		 	 14.7
	  	 Time is of the Essence
	  	 	50	  
				
		 	 14.8
	  	 Entire Agreement
	  	 	50	  
				
		 	 14.9
	  	 Further Assurances
	  	 	50	  
				
		 	 14.10
	  	 Waiver
	  	 	50	  
				
		 	 14.11
	  	 Headings
	  	 	50	  
				
		 	 14.12
	  	 Risk of Loss
	  	 	50	  
				
		 	 14.13
	  	 Construction of Agreement
	  	 	52	  
				
		 	 14.14
	  	 No Public Disclosure
	  	 	52	  
				
		 	 14.15
	  	 Covenants, Representations and Warranties
	  	 	53	  
				
		 	 14.16
	  	 Confidentiality
	  	 	53	  
				
		 	 14.17
	  	 No Third-Party Beneficiaries
	  	 	54	  
				
		 	 14.18
	  	 Electronic Signatures
	  	 	54	  
				
		 	 14.19
	  	 Severability
	  	 	54	  
				
		 	 14.20
	  	 Cumulative Remedies
	  	 	54	  
				
		 	 14.21
	  	 WAIVER OF JURY TRIAL
	  	 	54	  

  
 -iii- 

 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is dated as of this
7th day of October, 2013 (the “Effective Date”), and is made by and between each of the parties named on Exhibit “A-1” hereto (each, individually, a
“Seller” and, collectively, “Sellers”), and CHP Partners, LP, a Delaware limited partnership (“Purchaser”). 

RECITALS 
 A. Sellers,
collectively, are the owners of all of the Properties (as hereinafter defined), with the specific Seller of each Property being the party specified as the owner of such Property on Exhibit “A-1”. 

B. Purchaser desires to purchase all of the Properties and to acquire all of Sellers’ respective right, title and interest in and to the
Properties, on the terms and conditions set forth in this Agreement. 
 C. Sellers desire to sell to Purchaser all of the Properties and to
convey to Purchaser all of their respective right, title and interest in the Properties, on the terms and conditions set forth in this Agreement. 

D. All capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to such terms in Article I. 

AGREEMENT 
 NOW,
THEREFORE, for valuable consideration, including the promises, covenants, representations and warranties hereinafter set forth, the receipt and adequacy of which are hereby acknowledged, the parties, intending to be legally and equitably bound,
agree as follows. 
 I. 

DEFINITIONS 
 As used in
this Agreement, the following terms have the meanings ascribed to them in this Article I: 
 “Accounts Receivable.” With
respect to each Property, all accounts receivable and other sums owing to the applicable Seller in connection with the operation of its Facility existing prior to the Cut-Off Time. 

“Additional Deposit.” As set forth in Section 2.2(a) hereof. 

“Affiliate.” With respect to any person or entity, (i) all persons or entities that, directly or indirectly, control,
are controlled by, or under common control with, such person or entity; or (ii) all persons or entities that, directly or indirectly, own, are owned by or under common ownership with, such person or entity. 

 “Agreement.” As set forth in the preamble hereof. 

“Allocated Purchase Price.” As set forth in Section 2.7 hereof. 

“Allocated Deposit Amount.” With respect to any Property, two percent (2%) of the Allocated Purchase Price. 

“Assignment and Assumption of Leases and Contracts.” As set forth in Section 7.2(d) hereof. 

“Assignment and Assumption of Intangible Property.” As set forth in Section 7.2(c) hereof. 

“Assignment and Assumption of Resident Agreements.” As set forth in Section 7.2(e) hereof. 

“Assumed Contracts.” As set forth in Section 2.4 hereof. 

“Assumption Documents.” As set forth in Section 2.12(c) hereof. 

“Bill of Sale.” As set forth in Section 7.2(b) hereof. 

“Books and Records.” With respect to each Property, all documentation, third party reports and studies, land surveys, land
use applications, land use permits and approvals, operating permits and other documents in printed or electronic form (but with respect to items in electronic format, excluding software which is proprietary to Seller, its Affiliates or any third
party, or is licensed from third parties by Seller or its Affiliates) that is in the possession or under the control of Seller or its Affiliates and that pertains to the use, operation, ownership or condition of the Property, including (i) all
correspondence, billing, and other files, (ii) all structural reviews, environmental assessments or audits, architectural drawings and engineering, geophysical, soils, seismic, geologic, environmental (including with respect to the impact of
materials used in the construction or renovation of the Improvements) and architectural reports, studies and certificates pertaining to the Property, and (iii) all financial statements and other accounting, tax, financial, and other books and
records relating to the use, maintenance, and operation of the Property, but excluding (x) any Excluded Documents and (y) those items that are consolidated with items from other facilities owned, leased or managed by Seller or its
Affiliates and not being conveyed to Purchaser, if any. 
 “Business Agreements.” With respect to each Property, any Lease,
rental agreement, loan agreement, mortgage, easement, covenant, restriction or other agreement or instrument affecting all or a portion of the Property other than a Contract. 

“Cap Amount.” As set forth in Section 11.3(a) hereof. 

“Casualty.” As set forth in Section 14.12(a) hereof. 

“Casualty Notice.” As set forth in Section 14.12(a) hereof. 

  
 - 2 - 

 “Casualty Renovation Cost.” As set forth in Section 14.12(a) hereof. 

“Claims.” Collectively, damages, claims (including without limitation, any claim for damage to property of others or injury
to or death of any persons), penalties, obligations, liabilities, fines, losses, causes of action, fees, injuries, liens, encumbrance, proceedings, judgments, actions, rights, demands, costs and expenses (including without limitation, reasonable
attorneys’ fees whether or not legal proceedings are instituted and court and litigation costs). 
 “Claim Notice.” As
set forth in Section 11.3(b) hereof. 
 “CLIA Numbers” means license, registration and waiver identification numbers
assigned pursuant to the Clinical Laboratory Improvement Amendments (CLIA) of 1988. 
 “Closing.” The sale and assignment
of the Properties to Purchaser on the Closing Date and the performance by each party of the obligations on its part then to be performed under and in accordance with this Agreement. 

“Closing Date.” As set forth in Section 7.1 hereof. 

“Closing Documents.” As set forth in Section 11.3 hereof. 

“Closing Payment.” As set forth in Section 2.2(b) hereof. 

“Closing Statement.” As set forth in Section 7.2(k) hereof. 

“Contracts.” With respect to each Property, all leases of furniture, fixtures and equipment, all contracts (excluding
Resident Agreements), all third party payor provider agreements (excluding Governmental Entity third party payor provider agreements) and all other agreements relating to the ownership and/or operation of the Facility and/or the Property, together
with all related written warranties and guaranties, but excluding (a) any National Contracts (which shall be amended or terminated at Seller’s expense such that they no longer apply to any Property as of the Closing Date, unless such
contract, pursuant to a right to do so under the terms of such contract, can be de-coupled from the national contract and made site-specific, in which case the same shall be included in this definition), (b) any leases of furniture, fixtures
and equipment, contracts, or agreements that are with an Affiliate of the applicable Seller (which shall be terminated as of the Closing Date at the applicable Seller’s sole cost and expense), (c) any property management agreement (which
shall be terminated as of the Closing Date at the applicable Seller’s sole cost and expense), (d) any leases of furniture, fixtures and equipment, contracts, or agreements entered into in violation of Section 8.2 and (e) any
Leases. 
 “Current Month.” As set forth in Section 7.5(j) hereof. 

“Cut-Off Time.” As set forth in Section 7.5(c) hereof. 

“Deeds.” As set forth in Section 7.2(a) hereof. 

“Deposit.” As set forth in Section 2.2(a) hereof. 

  
 - 3 - 

 “Developer.” As set forth in Section 2.10 hereof. 

“Development Documents.” As set forth in Section 2.10 hereof. 

“Due Diligence Materials.” All of the documents and other materials delivered to or otherwise made available for inspection
(including in a website data room) by Purchaser and its representatives during the Due Diligence Period. 
 “Due Diligence
Period.” The period commencing on the Effective Date and ending at 5:00 p.m. (Eastern Time) on the date which is forty-five (45) days from the Effective Date. 

“Eastern Time.” Eastern Standard Time or Eastern Daylight Time, as applicable. 

“Effective Date.” As set forth in the preamble hereof. 

“Environmental Damages.” All claims, judgments, damages, losses, penalties, fines, liabilities (including strict liability),
encumbrances, liens, costs, and expenses of investigation and defense of any claim, whether or not such claim is ultimately defeated, and of any good faith settlement of judgment, of whatever kind or nature, contingent or otherwise matured or
unmatured, foreseeable or unforeseeable, including without limitation reasonable attorneys’ fees and disbursements and consultants’ fees, any of which are incurred at any time as a result of the existence of Hazardous Materials upon, about
or beneath any Real Property or migrating to or from any Real Property, or the existence of a violation of Environmental Requirements pertaining to any Real Property, regardless of whether the existence of such Hazardous Materials or the violation
of Environmental Requirements arose prior to the present ownership or operation of such Real Property. 
 “Environmental
Requirements” All applicable present and future statutes, regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises, and similar items, of all governmental agencies,
departments, commissions, boards, bureaus, or instrumentalities of the United States, states and political subdivisions thereof and all applicable judicial, administrative, and regulatory decrees, judgments, and orders relating to Hazardous
Materials. 
 “Escrow.” As set forth in Section 3.1 hereof. 

“Escrow Agent.” Fidelity National Title Insurance Company, 1900 West Loop South, Suite 200, Houston, TX 77027, Attention:
Selina I. Parelskin, sparelskin@fnf.com, Phone: (310) 701-7813. 
 “Escrow Agreement.” As set forth in
Section 3.1 hereof. 
 “Excluded Assets.” With respect to each Property, the Excluded Documents, the Excluded
Intellectual Property Rights, cash, cash equivalents, checks and other funds, including, without limitation, the Accounts Receivable (other than the proration of rent for the Current Month as set forth in Section 7.5(i) below and payments
received from third-party payors in connection with the Licensed Facilities, as set forth in Section 7.5(i) below), and balances on deposit to the credit of Seller with banking institutions, all of which shall be retained by Seller. 

  
 - 4 - 

 “Excluded Documents.” With respect to each Property, all (a) casualty,
liability, and life insurance policies owned or obtained by Seller on behalf or in connection with Seller’s business at the Facility, (b) the corporate minute books and stock registers of Seller, (c) internal memoranda,
correspondence, analyses, documents or reports prepared by or for Seller or its Affiliates in connection with the sale of the Property, including, without limitation, tax returns or financial statements of Seller (exclusive of operating statements
and the general ledger of the Facility and any supporting information which shall be available for review by Purchaser) for or in connection with its ownership or operation of the Property, (d) communications between Seller or any Affiliate and
their respective attorneys, (e) employee personnel files of Seller, (f) appraisals, assessments or other valuations of the Property in the possession or control of Seller, (g) original bills, invoices, receipts and checks relating to
expenses incurred prior to the Cut-Off Time (provided that Purchaser shall be entitled to copies of such items and to retain copies of all of the other Due Diligence Materials after Closing, which right shall survive the Closing), and (h) any
confidential or proprietary information of Seller or any confidential information of a resident (unless the transfer of such confidential information of a resident is made in compliance with all Legal Requirements), in each case however embodied.

 “Excluded Intellectual Property Rights.” As set forth on Schedule “1” attached hereto. 

“Existing Borrower Parties.” As set forth in Section 2.12(c). 

“Existing Liens.” As set forth in Section 2.8 hereof. 

“Extended Closing Date Property” or “Extended Closing Date Properties.” As set forth in Section 8.5
hereof. 
 “Extension Notice.” As set forth in Section 8.5 hereof. 

“Facility.” With respect to each Property, the senior living community located on the Real Property. 

“Financial Advisor.” As set forth in Article XII hereof. 

“Financial Statements.” The statements of income and expenses for calendar years 2011 and 2012 and year-to-date monthly
statements of income and expenses for 2013, including any such subsequent statements issued prior to Closing. 
 “General
Contractor.” As set forth in Section 2.11 hereof. 
 “Good Funds.” A deposit of cashier’s check,
certified funds, or confirmed wire transfer of funds. 
 “Hazardous Materials.” Any substance (i) the presence of
which requires investigation or remediation under any federal, state or local statute, regulation, ordinance or policy; or (ii) which is defined as a “hazardous waste” or “hazardous substance” under any
federal, state or local statute, regulation or ordinance, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.) and the Resource Conservation and Recovery
Act (42 U.S.C. Section 6901 et seq.) and amendments thereto and 

  
 - 5 - 

 
regulations promulgated thereunder; or (iii) which is toxic, explosive, corrosive, infectious or otherwise hazardous or is regulated by any federal, state or local governmental authority; or
(iv) without limitation which contains polychlorinated biphenyls (PCBs), asbestos or urea formaldehyde other than cleaning supplies, solvents and other substances typically used at the Properties and other comparable properties held and used in
commercially reasonable amounts and methods and in accordance with Environmental Requirements. 
 “Healthcare Permits.”
With respect to each Facility, a license, certification, permit, Medicare or Medicaid provider agreement, Medicare or Medicaid provider number, CLIA Numbers, authorization, registrations or similar document or authority issued or required under
Healthcare Requirements applicable to the ownership, leasing and/or operation of the Facility. 
 “Healthcare Requirements”
All applicable Legal Requirements relating to the operation of senior housing nursing, assisted living, memory and/or dementia care facilities for senior citizens. 

“Improvements.” With respect to each Property, the buildings, structures, fixtures, and other permanent improvements located
on the Land, including, without limitation, the Facility, electrical distribution systems, HVAC systems, walkways, driveways, parking lots, plumbing, lighting, and mechanical equipment and fixtures installed thereon, and all rights, benefits and
privileges appurtenant thereto. 
 “Initial Deposit.” As set forth in Section 2.2(a) hereof. 

“Intangible Property.” With respect to each Property, all (a) Intellectual Property Rights, (b) local telephone and
facsimile exchange numbers identified exclusively with the Facility, (c) certificates (including the Certificate of Occupancy for the Real Property), licenses, permits (including the Permits) and warranties now in effect with respect to the
Property permitted to be transferred pursuant to the applicable Legal Requirements and at no cost to Seller, (d) all general intangibles relating to design, development, operation and use of a Property, all rights and work product under
construction, service, consulting, engineering, architectural, design and construction agreements (including any warranties contained therein) and other Assumed Contracts, plans and specifications of any portion of the Property, and all development
rights and goodwill related to any portion of the Property, and (e) all other intangible property used by Seller exclusively in connection with the ownership and operation of the Property, but excluding the Excluded Assets. 

“Intellectual Property Rights.” With respect to each Property, subject to the last sentence of this paragraph, all patents,
copyrights, trade secrets, trademarks, trade names, service marks, and other know-how owned by Seller, including but not limited to (a) Seller’s rights to the names “Legacy Ranch” and “The Park at Plainfield, (b) the
exclusive right and license to use the names “Isle at Cedar Ridge”, “Isle at Watercrest – Bryan”, “Isle at Watercrest – Mansfield”, “Watercrest at Bryan”, “Watercrest at Mansfield”, and
“The Springs”, in connection with the operation of the applicable Facilities, but no other right or license to use the name “Isle”, “The Springs”, the “W” logo, or the name “Watercrest” except in
connection with the operation of the applicable Facilities, (c) marketing and management intangibles, (d) computer software developed and owned by Seller or its Affiliates and used in the operation of the Facilities, and (e)

  
 - 6 - 

 
manuals, instructions, policies, procedures and directives issued by Seller or its Affiliates to its employees at the Facility that relate solely to the operation of the Facility. The term
“Intellectual Property Rights” includes the Proprietary Marks and the specific data and information stored or maintained on the Intellectual Property Rights that uniquely pertains to the Facility or those served at the Facility (unless
such data and information is confidential or proprietary to Seller). The term “Proprietary Marks” means all trademarks, service marks, trade names, trade dress, symbols, logos, slogans, designs, insignia, emblems, devices, domain names,
distinctive designs of signs, or any other source identifying feature, or combinations thereof, which are used to identify Seller’s or its Affiliates’ services at the Facility, or which are used in connection with the operation of the
Facility by Seller or its Affiliates except the rights to the names “Isle at Cedar Ridge”, “Isle at Watercrest – Bryan”, “Isle at Watercrest – Mansfield”, “The Springs”, “Watercrest at
Bryan”, and “Watercrest at Mansfield”, which are being transferred only to the extent expressly provided in this paragraph. The Intellectual Property Rights shall exclude the Excluded Assets. 

“Inventory.” With respect to each Property, all inventories, materials and supplies used in connection with the operation of
the Property and located thereat. 
 “Land.” With respect to each Property, the land, as more particularly described on
Exhibit “A-2” attached hereto and upon which the Improvements are located, including all easements, rights-of-way, rights of ingress and egress, strips, zones, licenses, transferable hereditaments, privileges, tenements and
appurtenances in any way belonging to or appertaining to the same or the Improvements, and any right or interest in any open or proposed highways, streets, roads, avenues, alleys, easements, strips, gores and rights-of-way in, across, in front of,
contiguous to, abutting or adjoining the Land, and other rights and benefits running with the Land and/or the owner of the Land. 

“Leases.” With respect to each Facility, all leases, subleases, licenses, service agreements, concessions or other agreements
granting an interest to any Person for the use and occupancy of a portion of such Facility, which are in effect or executed as of the date of this Agreement or which become effective or executed between the date of this Agreement and the Closing
Date, together with all security deposits thereunder, if any, but excluding (i) Resident Agreements and (ii) if the Facility has a skilled nursing component, any operating lease entered into by Seller and an Affiliate of Seller (which
shall be terminated as of the Closing Date at Seller’s sole cost and expense). 
 “Legal Requirement.” Any applicable
federal, state, local or municipal constitution, law, ordinance, rule, order, regulation or statute of any governmental authority bearing on the construction, alteration, rehabilitation, maintenance, use, operation, sale, transfer or any other
aspect of all or any portion of a Property, including the Environmental Requirements and the Healthcare Requirements. 
 “Licensed
Facilities.” Collectively, the Facilities that have an assisted living, an Alzheimer’s care or a skilled nursing component. 

“Licensing Date.” As set forth in Section 2.9 hereof. 

  
 - 7 - 

 “Manager” shall mean the manager of the applicable Property as listed on
Exhibit “A-1” attached hereto. 
 “Management Documents.” As set forth in Section 2.9 hereof. 

“Mansfield IL Deposit.” As set forth in Section 2.12(f). 

“Mansfield IL Loan.” That certain loan in the original principal amount of $27,700,000 from KeyCorp Real Estate Capital
Markets, Inc. (and assigned to the Mansfield IL Lender) secured by the Mansfield IL Property. 
 “Mansfield IL Lender.”
Federal Home Loan Mortgage Corporation, a corporation organized and existing under the laws of the United States. Where the context so requires, the Mansfield IL Lender shall include its servicer, KeyBank Real Estate Capital Markets, Inc. 

“Mansfield IL Loan Documents.” Any and all documents evidencing, securing, governing or otherwise pertaining to the Mansfield
IL Loan. 
 “Mansfield IL Property.” That certain Property located at 250 East Debbie Lane, Tarant County, Texas. 

“Mansfield IL Seller.” Waterview at Mansfield Investors, L.P., a Texas limited partnership. 

“Material Contract.” Any Contract that has a value, or involves payment by (or to) Sellers or their respective Affiliates, of
at least Five Thousand and NO/100 Dollars ($5,000.00) during any twelve (12) month period. 
 “National Contracts.”
With respect to each Property, all leases of furniture, fixtures and equipment, service contracts, third party payor provider agreements or other agreements that apply to both the Property and to properties other than the Properties. 

“New Borrower Parties.” As set forth in Section 2.12(c) hereof. 

“Non-Foreign Affidavit.” As set forth in Section 7.2(f) hereof. 

“Notices to Residents.” As set forth in Section 7.2(o) hereof. 

“Notice.” As set forth in Article XIII hereof. 

“Official Records.” The office of the recorder of deeds and other real estate records in the jurisdiction in which a Property
is located. 
 “Other Permits.” With respect to each Property, the licenses and permits, approvals, entitlements, and other
governmental authorizations issued by a governmental or administrative agency or authority (whether federal, state or local) in Seller’s possession or control in connection with the ownership, operation, planning, development, constructions,
use, or maintenance of the Property, including certificates of occupancy, but excluding the Healthcare Permits. 

  
 - 8 - 

 “Pending Claim.” As set forth in Section 11.4 hereof. 

“Permits.” Collectively, the Healthcare Permits and the Other Permits. 

“Permitted Exceptions.” As set forth in Section 4.4 hereof. 

“Personal Property.” With respect to each Property, all (a) keys and combinations to all doors, cabinets, enclosures and
other locks on or about the Real Property, (b) furniture, equipment, televisions, telephone systems; mechanical systems, fixtures and equipment; electrical systems, fixtures and equipment; heating fixtures, systems, and equipment; air
conditioning fixtures, systems and equipment; plumbing fixtures, systems, and equipment; security systems and equipment; carpets, drapes, artwork and other furnishings; refrigerators, microwaves, ovens, stoves, and all other appliances; vehicles,
office equipment, furniture and fixtures not considered improvements, spare parts, supplies and other physical assets, machinery, tools, trade fixtures, utensils, china, glassware, and other personal property owned by Seller, which are used
exclusively in connection with the maintenance and operation of the Facility and/or the Real Property, (c) copies of files maintained or generated by Seller in the course of the operation of the Property (excluding the Excluded Documents) which
are located on the Real Property, (d) the Inventory, (e) the Books and Records, and (h) all other personal property which Seller is the owner thereof and which is used by Seller exclusively in connection with the ownership,
maintenance, and operation of the Facility and/or the Real Property; but excluding, however, (i) the Excluded Assets, (ii) the personal property owned by any resident or employee, and (iii) all tax and utilities and other deposits.

 “Post-Closing Escrow Agreement.” As set forth in Section 11.3(a) hereof. 

“Post-Closing Liability Escrow.” As set forth in Section 11.3(a) hereof. 

“Property.” As set forth in Recital A, with each Property comprised of the Land, the Improvements, the Facility, the Personal
Property, the Leases, the Contracts, and the Intangible Property owned or entered into, as applicable, by each Seller or SNF Subsidiary, as applicable. 

“Proprietary Information.” As set forth in Section 14.16 hereof. 

“Purchaser.” As set forth in the preamble hereof. 

“Purchase Price.” As set forth in Section 2.2 hereof. 

“Purchaser Permits.” As set forth in Section 8.1(b) hereof. 

“Real Property.” With respect to each Property, the Land and the Improvements. 

“Rejected Contracts.” As set forth in Section 2.4 hereof. 

“Rent Roll.” As set forth in Section 9.2(n) hereof 

  
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 “Required Deletion Items.” As set forth in Section 4.3 hereof. 

“Resident Agreements.” With respect to each Facility, those leases, occupancy, residency, and similar written agreements
entered into with residents of the Facility, and all amendments, modifications, supplements, renewals, and extensions thereof. 

“Retained Liabilities.” As set forth in Section 2.6 hereof. 

“Section 8.5 Extension Right.” As set forth in Section 8.5 hereof. 

“Seller” or “Sellers.” As set forth in the preamble hereof. 

“SNF Subsidiaries.” Collectively, Bryan SNF, LLC, a Delaware limited liability company, and Cedar Park SNF, LLC, a Delaware
limited liability company. Individually, any one of the SNF Subsidiaries shall be a “SNF Subsidiary.” 

“Survey.” As set forth in Section 4.2 hereof. 

“Survival Date.” As set forth in Section 11.4 hereof. 

“Termination Notice.” As set forth in Section 2.3 hereof. 

“Threshold Amount.” As set forth in Section 11.3(a) hereof. 

“Title Commitment.” As set forth in Section 4.1 hereof. 

“Title Objection Date.” As set forth in Section 4.3 hereof. 

“Utility Deposits.” With respect to each Property, all deposits made by Seller in connection with providing water, sewer,
gas, electricity, telephone and other public utilities to the Real Property. 
 “WARN Act.” As set forth in
Section 8.3(b) hereof. 
 II. 

SALE AND PURCHASE OF PROPERTY 

2.1 Purchase of Property. On the Closing Date, and subject to the terms and conditions of this Agreement, each Seller shall (or, as the
case may, cause the applicable SNF Subsidiary to) sell, assign, convey, transfer and deliver to Purchaser, and Purchaser shall purchase and acquire from each Seller (or, as the case may be, the applicable SNF Subsidiary) such Seller’s (or SNF
Subsidiary’s) right, title, and interest in and to the Land and Improvements, good and marketable title in the Personal Property, and all of such Seller’s right, title and interest in and to the Leases, Assumed Contracts, the Resident
Agreements and the Intangible Property, free and clear of all monetary liens and encumbrances (other than the Leases, the Assumed Contracts, the Resident Agreements, and the Permitted Exceptions), as further described in Section 2.7 hereof, at
the purchase price provided in Section 2.2 hereof. 

  
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 2.2 Purchase Price and Terms of Payment. The aggregate purchase price for the Properties
(“Purchase Price”) shall be One Hundred Eighty Seven Million Two Hundred Thousand and NO/100 Dollars ($187,200,000.00), allocated among the Properties as indicated on Exhibit “A-3”, and shall consist of and be
payable as follows: 
 (a) Within one (1) business day after the Effective Date, Purchaser shall deliver to Escrow
Agent, in Good Funds, the sum of Nine Hundred Thirty Five Thousand and NO/100 Dollars ($935,000.00) (together with all interest accrued thereon, the “Initial Deposit”). If this Agreement is not terminated pursuant to
Section 2.3, within one (1) business day after the expiration of the Due Diligence Period, Purchaser shall deliver to Escrow Agent, in Good Funds, as an additional deposit, the sum of Nine Hundred Thirty Five Thousand and NO/100 Dollars
($935,000.00) (together with all interest accrued thereon, the “Additional Deposit”; the Initial Deposit together with the Additional Deposit shall hereinafter individually and collectively be referred to as the
“Deposit”). The Deposit shall be non-refundable to Purchaser, except (i) if a condition precedent to Purchaser’s obligations as set forth in Section 10.2 below is not satisfied or cured as of the Closing Date and such
failure is not due to a default by Purchaser, or (ii) as specifically provided in Section 2.3, Section 4.3, Section 9.4, Section 10.3 or Section 11.2 below, and in any such event Purchaser’s right to such refund
will survive any termination of this Agreement. The Deposit shall be applied to the Purchase Price on the Closing Date. 

(b) Not later than 1:00 p.m. (Eastern Time) on the Closing Date, Purchaser shall deposit with Escrow Agent, in Good Funds, the
balance of the Purchase Price, reduced or increased by such amounts as are required to take into account any prorations, credits, costs or other adjustments which are required by this Agreement and which can be computed and determined as of the time
for the required deposit hereunder. The amount to be paid under this Section 2.2(b) is referred to in this Agreement as the “Closing Payment.” 

At the closing of the Mansfield IL Property, Purchaser shall receive a credit against the Purchase Price equal to the amount of the
outstanding principal balance and accrued interest on the Mansfield IL Loan as of the date that Purchaser’s applicable designee assumes the obligations of the Mansfield IL Seller under the Mansfield IL Loan Documents. 

2.3 Due Diligence Period. At any time prior to the expiration of the Due Diligence Period, Purchaser shall be free, in its sole and
absolute discretion, and for any or no reason whatsoever to terminate this Agreement by written notice to Sellers (the “Termination Notice”) delivered on or prior to the expiration of the Due Diligence Period. Upon delivery of the
Termination Notice prior to the expiration of the Due Diligence Period, Purchaser shall receive a return of the Deposit (to the extent previously deposited) and the parties shall equally share the cancellation charges, if any, of Escrow Agent. If
the Termination Notice is not delivered on or prior to the expiration of the Due Diligence Period, Purchaser shall be deemed to have waived its right to terminate this Agreement pursuant to this Section 2.3. 

2.4 Assumption of the Leases and Contracts. As additional consideration, Purchaser shall, on and as of the Closing Date, at its sole
cost and expense, assume and agree to pay all 

  
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sums and perform, fulfill and comply with all other covenants and obligations which are to be paid, performed and complied with by Sellers (or, as applicable, the SNF Subsidiaries) under the
Leases and Assumed Contracts which first arise or accrue on and after the Closing Date. Prior to the expiration of the Due Diligence Period, Purchaser shall notify Seller in writing of the identity of all Material Contracts that Purchaser elects to
terminate (collectively, the “Rejected Contracts”). Any Material Contracts existing as of the Effective Date that Purchaser does not notify Seller that Purchaser elects to terminate prior to the expiration of the Due Diligence
Period, together with those Contracts that do not meet the definition of “Material Contracts” but are terminable without fee or penalty upon no more than sixty (60) days’ notice shall be “Assumed Contracts.”
Notwithstanding anything to the contrary set forth herein, Purchaser shall be responsible for payment of (i) all fees due for the period after Closing through the termination date of each Rejected Contract and (ii) all termination fees
associated with the termination of each Rejected Contract. 
 2.5 Assumption of the Resident Agreements. As additional consideration,
Purchaser shall on and as of the Closing Date, at its sole cost and expense, assume and agree to perform, fulfill and comply with all covenants and obligations which are to be performed and complied with by Sellers (and, as applicable, the SNF
Subsidiaries) under the Resident Agreements in effect at such Facility which first arise or accrue on and after the Closing Date. 
 2.6
Assumed Liabilities. Except as expressly set forth herein, Purchaser shall not assume, in connection with the transactions contemplated hereby, any liability or obligation of any Seller (or any SNF Subsidiary) whatsoever, and, to this end,
each Seller (and SNF Subsidiary) shall retain responsibility for all liabilities and obligations accrued or incurred from its operations prior to Closing and all liabilities and obligations arising from its operations prior to Closing, whether or
not accrued and whether or not disclosed (the “Retained Liabilities”). The terms of this Section 2.6 shall survive Closing. 

2.7 Allocation of Purchase Price. 

(a) The Purchase Price is allocated among the Properties (the portion of the Purchase Price allocated to each Property is
referred to herein as the “Allocated Purchase Price”) as provided in Exhibit “A-3” attached hereto. Each party agrees to file federal, state and local tax returns consistent with the allocations set forth on
Exhibit “A-3”. 
 (b) Within five (5) days before the end of the Due Diligence Period, the parties
shall use their commercially reasonable efforts to agree on an allocation of the Allocated Purchase Price for each Property among each Property’s Real Property and the various items of Personal Property and Intangible Property. Each party
agrees to file federal, state and local tax returns consistent with such allocations agreed upon between the parties. If Sellers and Purchaser do not agree on how a Property’s Allocated Purchase Price shall be allocated among each
Property’s Real Property and the various items of Personal Property and Intangible Property, each party shall file federal, state and local tax returns based on each party’s own determination of the proper allocations, each bearing its own
consequences of any discrepancies. 

  
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 2.8 Discharge of Liens. Each Seller shall cause all bond financing, mortgages, deeds of
trust, and monetary liens (including liens for delinquent taxes and mechanics’ and judgment liens properly charged to any of Sellers) affecting its respective Property and all indebtedness secured thereby other than the Mansfield IL Loan (the
“Existing Liens”) to be fully satisfied, released, and discharged of record on the Closing Date, so that Purchaser shall take title to each Property free of the same. All costs related to the discharge of the Existing Liens at a
Property shall be borne by the applicable Seller with the use of its pro rata share of the Closing Payment or other funds of such applicable Seller. Each Seller acknowledges that such satisfaction, release, and discharge may involve prepayment
penalties or premiums and other costs or expenses, all of which shall be paid by such Seller at its sole cost and expense in connection with the Closing (and its pro rata share of the Closing Payment shall be used for such purpose). 

2.9 Negotiation and Execution of Management Documents. On or before the Effective Date, and continuing through the date that is thirty
(30) days following the Effective Date (the “Licensing Date”), Purchaser shall negotiate in good faith to enter into definitive, binding documents with respect to the management of the Properties following Closing
(collectively, the “Management Documents”) with the applicable Manager of each Property. 
 2.10 Negotiation and
Execution of Development Framework Agreement. On or before the Effective Date, and continuing throughout the Due Diligence Period, Purchaser and South Bay Partners, Ltd. (“Developer”) and/or their Affiliates shall negotiate in
good faith to enter into definitive, binding documents with respect to the development of multiple senior housing projects, including a Development Framework Agreement, a Development Agreement, a Joint Venture Agreement, and other related ancillary
documents (collectively, the “Development Documents”). The terms of the Development Documents shall be substantially in accordance with the terms set forth in that certain letter of intent dated September 11, 2013, among
Sellers, Developer and CNL Healthcare Corp., with such other terms as the parties thereto may negotiate. If the parties thereto have not entered into the Development Documents by the date of expiration of the Due Diligence Period, then either
Sellers or Purchaser shall have the right to terminate this Agreement by giving written notice to the other, by not later than three (3) business days after the expiration of the Due Diligence Period. Upon any such termination, Purchaser shall
receive a return of the Deposit (to the extent previously deposited) and the parties shall equally share the cancellation charges, if any, of Escrow Agent. 

2.11 General Contractor. Notwithstanding anything in this Agreement to the contrary, Purchaser acknowledges that (i) the general
contractor for the development of the Property known as “The Springs” was RES ICD, LP, dba Integrated Construction and Development, LP, and the general contractor for the development of the remainder of the Properties (other than the
Property known as “The Park at Plainfield”), was RES ICC, LLC, dba Integrated Construction Concepts, LLC (collectively, the “General Contractor”), (ii) the General Contractor is an affiliate of Sellers, (iii) the
Contracts with the General Contractor have been fully performed by the General Contractor, and (iv) in any case no Contracts with or related rights against the General Contractor are being assigned hereunder. Purchaser acknowledges and agrees
that it does not have contractual privity with the General Contractor, and in any event Purchaser shall have no right to make warranty (whether arising under contract, statute, common law or otherwise) or other contract claims against General
Contractor. For the avoidance of doubt, any warranties assigned under the Assignment and Assumption of Intangible Property or any other Closing 

  
 - 13 - 

 
Document are assigned only to the extent given by third parties other than the General Contractor. Purchaser may therefore only make any warranty claims against any such third parties (to
the extent any warranties remain in effect from such third parties), and the General Contractor shall bear no liability arising from or related to any such warranty claim. Notwithstanding the foregoing, Purchaser is not waiving any claims arising as
a result of General Contractor’s gross negligence or willful misconduct which Purchaser may have against General Contractor by statute or under common law. 

2.12 Assumption of Mansfield IL Loan. 

(a) The Mansfield IL Property is currently subject to a mortgage lien that secures the Mansfield IL Loan. Subject to and in accordance with
the provisions of the Mansfield IL Loan Documents and this Agreement, Purchaser’s applicable designee will assume the obligations of the Mansfield IL Seller under the Mansfield IL Loan Documents. As such, Purchaser shall (i) use its
commercially reasonable efforts to obtain the written consent of the Mansfield IL Lender to the sale of the Mansfield IL Property to Purchaser’s applicable designee and the assumption by Purchaser’s applicable designee of the Mansfield IL
Loan and (ii) endeavor diligently and in good faith to complete the assumption of the Mansfield IL Loan. 
 (b) Without limiting the
generality of the foregoing, Purchaser shall: (i) within five (5) days after the Effective Date, submit to the Mansfield IL Lender a complete loan assumption application in the form required by the Mansfield IL Lender, (ii) submit all
other information with respect to Purchaser, Purchaser’s applicable designee and their respective representatives and Affiliates, as the Mansfield IL Lender may request, (iii) provide such legal opinions as the Mansfield IL Lender may
require, from counsel acceptable to the Mansfield IL Lender and in form and substance acceptable to the Mansfield IL Lender, (iv) satisfy the Mansfield IL Lender’s requirements with respect to the single purpose and/or single asset entity
and bankruptcy remote structure of ownership of Purchaser’s applicable designee; (v) deposit with the Mansfield IL Lender such funds as may be required in accordance with the terms of the Mansfield IL Loan Documents to replace all existing
required reserve or escrow accounts so that all funds or other security held by or for the benefit of the Mansfield IL Lender under the existing reserve or escrow accounts may be returned to the Mansfield IL Seller or, alternatively, credit the
Mansfield IL Seller in an amount equal to the amount of funds or other security held by or for the benefit of the Mansfield IL Lender under such reserve or escrow accounts; (vi) comply with any other conditions to the transfer that may be
imposed by the Mansfield IL Lender; and (vii) take such other actions as may be required to comply with the transfer provisions of the Mansfield IL Loan Documents. 

(c) It is understood and agreed that the assumption by Purchaser’s applicable designee of the Mansfield IL Loan will be pursuant to one
or more written agreements to be entered into among, inter alia, the Mansfield IL Lender, the Mansfield IL Seller and Purchaser or Purchaser’s applicable designee (collectively, the “Assumption Documents”). The
Assumption Documents will be on the standard forms of the Mansfield IL Lender, but shall include the following as conditions of Closing under Sections 10.1(d) and Section 10.2(d) below: (i) the Mansfield IL Lender’s consent to
Purchaser’s applicable designee’s purchase of the Mansfield IL Property; (ii) the Mansfield IL Lender’s consent to the assumption by (A) Purchaser’s applicable designee of the obligations of the Mansfield IL Seller
under the Mansfield IL Loan Documents, 

  
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and (B) an Affiliate of Purchaser (together with Purchaser, the “New Borrower Parties”) of the obligations of Richard E. Simmons (together with the Mansfield IL Seller, the
“Existing Borrower Parties”) under the Mansfield IL Loan Documents; and (iii) a release of the Existing Borrower Parties from liability under the Mansfield IL Loan Documents as provided for in the Mansfield IL Lender’s
standard form of Reaffirmation Agreement, utilizing the second version of each of Sections 2 and 3, releasing the Existing Borrower Parties from liability arising from “Post-Transfer Environmental Conditions” (as described in the Mansfield
IL Lender’s form of Reaffirmation Agreement) provided that the Mansfield IL Seller delivers a clean Phase I environmental report with respect to the Mansfield IL Property to the Mansfield IL Lender. 

(d) Notwithstanding anything to the contrary contained herein, in no event shall the New Borrower Parties be obligated to enter into any
agreements with the Mansfield IL Lender that would modify the economic terms of the Mansfield IL Loan, increase the obligations of the borrower beyond those of the Mansfield IL Seller or increase the obligations of any guarantors and indemnitors
beyond those of the current guarantors and indemnitors under the Mansfield IL Loan Documents. 
 (e) Purchaser shall pay any and all loan
assumption fees, expenses and other costs charged or incurred by the Mansfield IL Lender, and required to be reimbursed by the Mansfield IL Lender, in connection with the parties’ obtaining or seeking to obtain the Mansfield IL Lender’s
execution and delivery of the Assumption Documents, including the cost of any title insurance or endorsement required by the Mansfield IL Lender, any application fees, assumption fees, review fees or processing fees charged by the Mansfield IL
Lender, and any legal fees of the Mansfield IL Lender. Purchaser shall be responsible for all fees charged or incurred by the Mansfield IL Lender regardless of whether or not Closing occurs. The provisions of this subsection (e) shall survive
the expiration or termination of this Agreement. 
 (f) If the Mansfield IL Lender has not finally approved the Assumption Documents in
accordance with the provisions of this Section 2.12 on the Closing Date, then Seller or Purchaser may extend the Closing Date for up to fifteen (15) days; provided, however, if the Mansfield IL Lender still has not finally approved the
Assumption Documents in accordance with the provisions of this Section 2.12 as of the date that is fifteen (15) days after the Closing Date, then, Seller and Purchaser shall proceed to Closing with respect to all Properties other than the
Mansfield IL Property, this Agreement shall survive with respect to the Mansfield IL Property, and Escrow Agent shall continue to hold Four Hundred Forty-Eight Thousand Eight Hundred Dollars ($448,800) under the Escrow Agreement (the
“Mansfield IL Deposit”). The Mansfield IL Deposit shall constitute a Deposit hereunder for all purposes. On the date that is sixty (60) days after the Closing Date, if the Mansfield IL Property has not been sold subject to the
Mansfield IL Loan to Purchaser’s applicable designee in accordance with the provisions of this Section 2.12, then either Seller or Purchaser shall have the right to terminate this Agreement solely as the same relates to the Mansfield IL
Property by giving notice to the other party prior to the date that the Mansfield IL Property is sold in accordance with the provisions of this Section 2.12. Subject to the rights of the parties set forth in this Agreement with respect to
defaults, in the event of the termination of this Agreement solely as it relates to the Mansfield IL Property by either party, the Mansfield IL Deposit shall be returned to Purchaser, and neither party shall have any further obligation to the other
under this Agreement with respect to the Mansfield IL Property, except for obligations that may survive any termination hereof as expressly provided herein. 

  
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 III.  

ESCROW 
 3.1
Escrow. Purchaser and Sellers have established or will establish an escrow (“Escrow”) with Escrow Agent by depositing with Escrow Agent the Deposit and having three (3) copies of the Escrow Agreement in the form attached
hereto as Exhibit “B” duly executed (in counterparts or otherwise) by Sellers, Purchaser and Escrow Agent (the “Escrow Agreement”). The Deposit shall be held by Escrow Agent in accordance with the terms of the
Escrow Agreement. In the event of any conflict between this Agreement and the Escrow Agreement, the terms of this Agreement shall control. 

3.2 Deposit of Funds. Except as otherwise provided in this Agreement, all funds deposited into the Escrow by Purchaser shall be
immediately deposited by Escrow Agent into an interest bearing account, subject to the control of Escrow Agent in a bank or savings and loan association, or such other institution approved by Purchaser, or such other investment as may be approved by
Purchaser; provided, however, that such funds must be readily available as necessary to comply with the terms of this Agreement and the Escrow Agreement, and for the Escrow to close within the time specified in Section 7.1 of this Agreement.
Except as may be otherwise specifically provided herein, interest on amounts placed by Escrow Agent in any such investments or interest bearing accounts shall accrue to the benefit of Purchaser, and Purchaser shall promptly provide to Escrow Agent
Purchaser’s Tax Identification Number. 
 IV.  

TITLE AND SURVEY 
 4.1
Title Examination; Commitment for Title Insurance. Prior to or on the Effective Date, each Seller has obtained from Escrow Agent and delivered to Purchaser, at Seller’s sole cost and expense, a current commitment for an A.L.T.A.
Owner’s Policy of Title Insurance 2006 Form (or if not available, the local equivalent) (the “Title Commitment”) covering such Real Property and a copy of each document referenced in the Title Commitment as an exception to
title. 
 4.2 Survey. Prior to or on the Effective Date, each Seller has delivered to Purchaser, at Seller’s sole cost and
expense, the existing survey for its Real Property (the “Survey”), to the extent in its possession or control. In the event that Purchaser elects to have a new or updated Survey of any Real Property performed, it shall deliver a
copy thereof to Sellers within five (5) days of receipt of any such Survey. 
 4.3 Title Objections; Cure of Title Objections.
Purchaser shall have until fifteen (15) days prior to the expiration of the Due Diligence Period (the “Title Objection Date”) to provide Notice to Sellers, in writing, of such objections as Purchaser may have to any item
contained in any Title Commitment and any matter shown on any Survey (or any update thereto received 

  
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prior to the Title Objection Date). Any item contained in any Title Commitment or any matter shown on any Survey to which Purchaser does not object prior to the Title Objection Date shall be
deemed a Permitted Exception. In the event Purchaser provides Notice to Sellers of objections to any items contained in any Title Commitment or any matters shown on any Survey prior to the Title Objection Date, Sellers shall have the right, but not
the obligation (except as otherwise provided below), to cure such objections. Within five (5) days after receipt of Purchaser’s notice of objections, Sellers shall notify Purchaser in writing as to whether Sellers elect to attempt to cure
such objections. Any failure by Sellers to respond within five (5) days after receipt of Purchaser’s notice of objections shall be deemed a refusal by Sellers to cure any objections to which a response was not delivered. If Purchaser does
not terminate this Agreement prior to the expiration of the Due Diligence Period pursuant to Section 2.3, all items contained in the Title Commitments or matters shown on the Surveys, other than the Required Deletion Items and those items or
matters with respect to which Purchaser has objected and Sellers have affirmatively elected to cure, shall be deemed Permitted Exceptions. The Permitted Exceptions shall, inter alia, include (and Purchaser shall not be permitted to object to)
any exceptions relating to interests and rights of parties in possession under any Leases or Resident Agreements, liens for all real estate taxes and assessments, water rates, water meter charges, sewer rates, sewer charges and similar matters
imposed by any governmental authority and not yet due and payable as of the Closing Date, including special assessments and special improvement district or local improvement district bonds, any and all present and future laws, ordinances,
restrictions, requirements, resolutions, orders, rules and regulations of any governmental authority, as now or hereafter existing or enforced (including those related to zoning and land use), and any exceptions caused by Purchaser, its agents,
representatives or employees. If Sellers elect to attempt to cure, and provided that Purchaser shall not have terminated this Agreement in accordance with Section 2.3 hereof, Sellers shall have until the Closing Date to attempt to remove,
satisfy or cure the same and for this purpose Sellers shall be entitled to a reasonable adjournment of the Closing if additional time is required, but in no event shall the adjournment exceed thirty (30) days after the Closing Date. If Sellers
are unable to effect a cure prior to the Closing Date (or any date to which the Closing has been adjourned) then Purchaser shall have the option, in its sole discretion, to (a) accept a conveyance of the Real Property subject to the Permitted
Exceptions and any matter objected to by Purchaser that Sellers are unable to cure, and without reduction of the Purchase Price or (b) terminate this Agreement by sending written notice thereof to Seller, and upon delivery of such notice of
termination, this Agreement shall terminate and the Deposit shall be returned to Purchaser. Following any termination of this Agreement in accordance with subsection (b) of the previous sentence, neither party hereto shall have any further
rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. Except as provided in the next sentence, Sellers shall have no obligation to
bring any action or proceeding or otherwise to incur any expense to correct, discharge or otherwise remove title exceptions or defects with respect to any Property or to remove, remedy or comply with any other grounds for Purchaser’s refusing
to approve title. Each Seller shall, however, be obligated to remove or discharge, or otherwise cause the Escrow Agent to omit as an exception to title or to insure against collection thereof from or against its respective Property, (y) any
Existing Liens and (z) any liens and encumbrances created by through or under such Seller after the Effective Date, that are not Permitted Exceptions (collectively, the “Required Deletion Items”). If, on the Closing Date, there
are any Required Deletion Items, the applicable Seller 

  
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may use any portion of its pro rata share of the Closing Payment to satisfy same, provided the Escrow Agent shall omit such lien or encumbrance as an exception to title. If the applicable Seller
shall fail to authorize the Escrow Agent to use its pro rata share of the Closing Payment to satisfy a Required Deletion Item, and such Required Deletion Item therefore is not omitted as an exception to title, such failure shall be deemed to be a
default by Sellers, and Purchaser shall have the remedies set forth in Section 11.2. 
 4.4 Conveyance of Title. At the Closing,
Sellers shall deliver to Purchaser, in escrow through Escrow Agent, the Deeds, each subject to no exceptions other than the Permitted Exceptions. 

The acceptance by Purchaser of the Deeds shall be deemed to be a full performance and discharge of every obligation on the part of Sellers to
be performed under this Agreement with respect to the Property, other than those that are specifically stated herein or in any Closing Document to survive the Closing. 

V.  
 INSPECTIONS

 5.1 Purchaser’s Independent Inspection. 

(a) Sellers shall provide Purchaser the full opportunity during the Due Diligence Period to inspect and investigate each and
every aspect of each Property, either independently or through agents, representatives or experts of Purchaser’s choosing, as Purchaser considers necessary or appropriate. Such independent investigation by Purchaser may include (but is not
limited to): 
 (i) all matters relating to title to each Property; 

(ii) all matters relating to Legal Requirements with respect to each Property, such as taxes, assessments, zoning, use permit
requirements and building codes; 
 (iii) all zoning, land use, building, environmental and other statutes, rules, or
regulations applicable to each Real Property; 
 (iv) the physical condition of each Real Property, including the interior,
the exterior, the square footage of the Improvements, the structure, the roof, the paving, the utilities, and all other physical, structural and functional aspects of such Real Property; 

(v) reports, studies, assessments, investigations and other materials related to the presence of Hazardous Materials at, on or
under each Real Property and the compliance of such Real Property with all Environmental Requirements, including environmental assessment reports; 

(vi) any easements and/or access rights affecting such Real Property; 

  
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 (vii) the form of Resident Agreement with respect to each Real Property; 

(viii) the Material Contracts and Leases affecting each Property; 

(ix) all matters that would be revealed by a Survey, a physical inspection or an environmental site assessment of each Real
Property; and 
 (x) all matters relating to the income and operating or capital expenses of each Property and all other
financial matters. 
 (b) Except as expressly provided herein or in any Closing Documents, Sellers make no representations or
warranties as to the truth, accuracy or completeness of any materials, data or other information, if any, supplied to Purchaser in connection with Purchaser’s inspection of the Property (e.g., that such materials are complete, accurate or the
final version thereof, or that all such materials are in Sellers’ possession). Except for Purchaser’s reliance on any representation and warranties expressly provided herein, it is the parties’ express understanding and agreement that
any such materials are to be provided only for Purchaser’s convenience in making its own examination and determination as to whether it wishes to purchase the Properties, and, in doing so, Purchaser shall rely exclusively on its own independent
investigation and evaluation of every aspect of each Property and not on any materials supplied by Sellers. Except for Purchaser’s reliance on any representation and warranties expressly provided herein or in any Closing Documents with respect
to any such materials, Purchaser expressly disclaims any intent to rely on any such materials provided to it by Sellers in connection with its inspection and agrees that it shall rely solely on its own independently developed or verified
information. 
 (c) Purchaser acknowledges and agrees that (i) on or prior to the expiration of the Due Diligence Period
it will have completed its independent inspection and investigation of the Property and the Due Diligence Materials and (ii) it shall have no right after the expiration of the Due Diligence Period to terminate this Agreement based on any
further investigations of the Property or the Due Diligence Materials. The failure of Purchaser to send a Termination Notice prior to the expiration of the Due Diligence Period shall conclusively constitute Purchaser’s approval of each and
every aspect of the Property, subject to the terms and conditions of this Agreement. 
 5.2 Access. 

(a) Sellers shall cooperate and provide Purchaser with reasonable access to each Real Property upon commercially reasonable
Notice to Sellers for the purpose of Purchaser’s inspection (provided, however, that Purchaser shall not perform any invasive testing of any Real Property without Sellers’ prior written consent in each instance, which may be granted or
withheld in Sellers’ sole and absolute discretion). Neither Purchaser nor any of its employees, agents or representatives shall contact or otherwise discuss this transaction and/or the operation of the Facilities with any on-site employees of
the Facilities without Sellers’ prior written consent; provided, however, that Purchaser may 

  
 - 19 - 

 
meet with any Facility’s Executive Director upon commercially reasonable Notice to Sellers but, if required by Sellers, only in the presence of Sellers’ representative. Each Seller
shall have the right to have a representative of such Seller present during all inspections or examinations of the applicable Real Property by Purchaser. Prior to any entry by Purchaser or any of Purchaser’s designees onto any Property,
Purchaser shall: (i) if Purchaser does not then have such a policy in force, procure a policy of commercial general liability insurance, issued by an insurer reasonably satisfactory to Sellers, covering all Purchaser’s activities, with a
single limit of liability (per occurrence and aggregate) of not less than Two Million and NO/100 Dollars ($2,000,000.00); and (ii) deliver to Sellers a Certificate of Insurance, evidencing that such insurance is in force and effect, and
evidencing that Sellers have been named as an additional insured thereunder with respect to any Purchaser’s activities. Such insurance shall be written on an “occurrence” basis, and shall be maintained in force until the earlier of
(x) the termination of this Agreement and the conclusion of all of Purchaser’s activities on the Property, or (y) the Closing Date. 

(b) Purchaser, at all times, will conduct all inspections and reviews in compliance with all Legal Requirements, and in a
manner so as to not cause damage, loss, cost or expense to Sellers, any Property or the residents of any Property, and without unreasonably interfering with or disturbing any employee or resident at the Facilities. Prior to Closing, the results of
or any other information acquired pursuant to Purchaser’s inspections shall be subject to the terms and conditions of Section 14.16 below. Purchaser will promptly restore any damage to any Property caused by Purchaser’s inspection to
substantially the same condition immediately preceding such inspections and examinations and will keep the Properties free and clear of any mechanic’s liens or materialmen’s liens caused by Purchaser or its representatives in connection
with such inspections and examinations. 
 (c) The cost of the inspections and tests undertaken pursuant to this
Section 5.2 shall be borne solely by Purchaser. 
 5.3 Confidential Nature of Due Diligence Materials. Purchaser covenants and
agrees that, until the Closing Date, all information and materials disclosed and/or delivered to it by Sellers, or Sellers’ agents, employees and representatives (including without limitation, the Due Diligence Materials), are confidential and
proprietary information, and that Purchaser shall hold the same in accordance with the terms and conditions of Section 14.16 below. Purchaser also agrees that, in the event the transactions contemplated in this Agreement are not consummated as
provided herein, Purchaser shall promptly return to Sellers or notify Seller in writing that Purchaser has destroyed all such information and documentation and all copies thereof other than any copies required to be retained to comply with
Purchaser’s internal records retention policy, which copies shall continue to be subject to the terms of Section 14.16. 
 5.4
Continuing Nature of Purchaser’s Obligations. The obligations of Purchaser under this Article V (including its indemnification obligations under Section 8.1(a)) shall survive Closing or the termination of this Agreement. 

  
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 VI.  

PROPERTY 
 6.1
Condition of Property. THE FOLLOWING PROVISIONS IN THIS SECTION 6.1 ARE SUBJECT TO THE EXPRESS REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS, AND OTHER PROVISIONS OF THIS AGREEMENT (INCLUDING WITHOUT LIMITATION THE REPRESENTATIONS AND
WARRANTIES SET FORTH IN SECTION 9.2) AND THE CLOSING DOCUMENTS: 
 (a) BY ENTERING INTO THIS AGREEMENT, PURCHASER HAS AGREED
TO, AND WILL, PERFORM (AND PURCHASER REPRESENTS AND WARRANTS TO SELLERS THAT PURCHASER IS CAPABLE OF PERFORMING) AN INDEPENDENT INVESTIGATION, ANALYSIS AND EVALUATION OF THE PROPERTIES. PURCHASER WILL CONDUCT ITS OWN THOROUGH AND INDEPENDENT
INSPECTION, INVESTIGATION, ANALYSIS AND EVALUATION OF ALL INSTRUMENTS, RECORDS AND DOCUMENTS WHICH PURCHASER DETERMINES TO BE APPROPRIATE OR ADVISABLE TO REVIEW IN CONNECTION WITH PURCHASER’S ACQUISITION OF THE PROPERTY AND THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. 
 (b) PURCHASER FURTHER ACKNOWLEDGES THAT PURCHASER HAS SUBSTANTIAL EXPERIENCE WITH REAL
PROPERTY AND SENIOR LIVING FACILITIES AND THEIR OPERATIONS, AND THAT PURCHASER WILL ACQUIRE THE PROPERTIES IN “AS IS, WHERE IS, WITH ALL FAULTS” CONDITION, AND SOLELY IN RELIANCE ON PURCHASER’S OWN INSPECTION AND EXAMINATION AND
SELLERS’ REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED HEREIN OR IN ANY CLOSING DOCUMENTS. 
 (c) EXCEPT AS TO
THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CLOSING DOCUMENTS, IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT SELLERS MAKE NO REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND, NATURE OR SORT, EXPRESS OR
IMPLIED, WITH RESPECT TO THE PHYSICAL CONDITION, PAST, PRESENT OR FUTURE OPERATION AND/OR PERFORMANCE, OR VALUE, OF ANY PROPERTY AND THAT SELLERS CONVEY THE PROPERTIES TO PURCHASER “AS IS AND WHERE IS, WITH ALL FAULTS,” AND PURCHASER
ACKNOWLEDGES THAT SELLERS MAKE NO REPRESENTATIONS, GUARANTIES OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE QUALITY, CHARACTER, EXTENT, PERFORMANCE, CONDITION OR SUITABILITY OF THE PROPERTIES FOR ANY PURPOSE. 

(d) PURCHASER’S INSPECTION, INVESTIGATION AND SURVEY OF THE PROPERTIES SHALL BE IN LIEU OF ANY NOTICE OR DISCLOSURE
REQUIRED BY ANY APPLICABLE HEALTH AND SAFETY CODE, OR BY ANY 

  
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OTHER PROVISION OF APPLICABLE LAW, RULE OR REGULATION, INCLUDING, WITHOUT LIMITATION, LAWS REQUIRING DISCLOSURE BY SELLER OF FLOOD, FIRE, MOLD, SEISMIC HAZARDS, LEAD PAINT, LANDSLIDE AND
LIQUEFACTION, OTHER GEOLOGICAL HAZARDS, RAILROAD AND OTHER UTILITY ACCESS, SOIL CONDITIONS AND OTHER CONDITIONS WHICH MAY AFFECT THE USE OF THE REAL PROPERTY, AND PURCHASER HEREBY WAIVES ANY REQUIREMENT FOR A NOTICE PURSUANT TO THOSE PROVISIONS AND
HEREBY ACKNOWLEDGES AND AGREES THAT IT WILL CONDUCT ITS OWN INSPECTIONS AND REVIEWS WITH RESPECT TO ALL MATTERS COVERED THEREBY, AND HEREBY RELEASES SELLERS FROM LIABILITY IN CONNECTION WITH ANY SUCH MATTERS THAT ARE NOT THE SUBJECT OF ANY OF
SELLERS’ COVENANTS REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN OR ANY CLOSING DOCUMENTS. 
 (e) PURCHASER ALSO
ACKNOWLEDGES AND AGREES THAT, ALTHOUGH SELLERS HAVE PROVIDED TO PURCHASER THE DUE DILIGENCE MATERIALS AND THE BOOKS AND RECORDS, SELLERS HAVE NOT VERIFIED THE ACCURACY THEREOF AND MAKE NO REPRESENTATIONS OR WARRANTIES REGARDING THE MATTERS SET FORTH
THEREIN EXCEPT AS MAY BE EXPRESSLY SET FORTH HEREIN OR ANY CLOSING DOCUMENTS, IT BEING THE RESPONSIBILITY OF PURCHASER TO VERIFY THE ACCURACY OF SUCH MATERIALS. 

(f) FURTHERMORE, EXCEPT AS TO THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CLOSING
DOCUMENTS, PURCHASER ACKNOWLEDGES THAT SELLERS HAVE NOT AND DO NOT MAKE ANY REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THE PRESENCE OR INTEGRATION OF HAZARDOUS MATERIALS UPON OR WITHIN ANY REAL PROPERTY. IN THAT REGARD, PURCHASER WILL CONDUCT
ITS OWN INVESTIGATIONS TO DETERMINE IF ANY REAL PROPERTY CONTAINS ANY HAZARDOUS MATERIALS OR TOXIC WASTE, MATERIALS, DISCHARGE, DUMPING OR CONTAMINATION, WHETHER SOIL, GROUNDWATER OR OTHERWISE, WHICH VIOLATES ANY FEDERAL, STATE, LOCAL OR OTHER
GOVERNMENTAL LAW, REGULATION OR ORDER OR REQUIRES REPORTING TO ANY GOVERNMENTAL AUTHORITY. 
 (g) THE PROVISIONS HEREOF SHALL
EXTEND TO THE BENEFIT OF THE GENERAL CONTRACTOR AS WELL AS SELLERS EXCEPT THAT, WITH RESPECT TO THE GENERAL CONTRACTOR, THE PROVISIONS OF THIS SECTION 6.1 SHALL BE SUBJECT TO THE LAST SENTENCE OF SECTION 2.11.

  
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BY INITIALING THIS CLAUSE BELOW, PURCHASER ACKNOWLEDGES THAT THIS ARTICLE HAS BEEN READ AND FULLY UNDERSTOOD, AND THAT PURCHASER HAS HAD THE CHANCE TO ASK QUESTIONS OF ITS COUNSEL ABOUT ITS
MEANING AND SIGNIFICANCE. 
  

					
		 	  
	 	
		 	PURCHASER’S INITIALS	 	

 6.2 Survival of Article VI. THE PROVISIONS OF THIS ARTICLE VI SHALL SURVIVE CLOSING. 

VII. 
 CLOSING 

7.1 Closing Date. The “Closing Date” for purposes of this Agreement shall be the date which is fifteen (15) days
after the expiration of the Due Diligence Period, or such earlier date as may be agreed upon, in writing, by Sellers and Purchaser; provided, however, that Seller shall have the right, at its option, to extend the Closing Date as set forth in
Section 4.3 and Section 9.4 herein, Purchaser shall have the right, at its option, to extend the Closing Date as set forth in Section 8.5 herein, and either Sellers or Purchaser shall have the right, at their option, to extend the
Closing Date as set forth in Section 2.12 and Section 8.4 herein. Notwithstanding any language to the contrary herein, in no event shall the aggregate of all extensions of the Closing Date hereunder result in the Closing Date occurring
after February 28, 2014. 
 7.2 Action Prior to the Closing Date by Seller. Sellers agree that, provided Purchaser has complied
with its obligations under Section 7.3 hereof, on or before 1:00 p.m. (Eastern Time) on the Closing Date, Sellers will deposit with Escrow Agent such items and instruments (executed and acknowledged, if appropriate) as may be necessary in order
for Escrow Agent to comply with this Agreement, including, without limitation, the following: 
 (a) For the Property located
in Illinois, a special warranty deed in the form and content attached hereto as Exhibit “C-1” and for all of the Properties located in Texas, a single special warranty deed substantially in the form and content attached hereto as
Exhibit “C-2”, prepared and executed by the applicable Sellers and acknowledged before a Notary Public in the manner provided under the laws of the state in which the particular Property is located, reflecting the sale and transfer
to Purchaser of the Real Property and the Improvements owned by such Sellers (collectively, the “Deeds”), subject only to those Permitted Exceptions applicable to such Property. 

(b) For each Property, two (2) duplicate originals of a Bill of Sale, in the form and content attached hereto as
Exhibit “D”, prepared and executed by the applicable Seller (and, as the case may be, the applicable SNF Subsidiary) assigning, conveying and transferring to Purchaser the Personal Property owned by such Seller (and, as the case may
be, the applicable SNF Subsidiary) (“Bill of Sale”); 
 (c) For each Property, two (2) duplicate
originals of an Assignment and Assumption of Intangible Property, in the form and content attached hereto as Exhibit “E”, 

  
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prepared and executed by the applicable Seller (and, as the case may be, the applicable SNF Subsidiary) assigning and conveying to Purchaser, at no cost or expense to such Seller (or, as the case
may be, the applicable SNF Subsidiary) and without representation or warranty (other than as expressly set forth herein), all of such Seller’s (and, as the case may be, the applicable SNF Subsidiary’s) right, title and interest in the
Intangible Property owned by such Seller (and, as the case may be, the applicable SNF Subsidiary) (“Assignment and Assumption of Intangible Property”); 

(d) For each Property, two (2) duplicate originals of an Assignment and Assumption of Leases and Contracts, in the form
and content attached hereto as Exhibit “F”, prepared and executed by the applicable Seller (and, as the case may be, the applicable SNF Subsidiary), assigning and conveying to Purchaser, at no cost or expense to such Seller (or, as
the case may be, the applicable SNF Subsidiary), and without representation or warranty (other than as expressly set forth herein), all of such Seller’s (and, as the case may be, the applicable SNF Subsidiary’s) right, title and interest
under the Leases and Assumed Contracts relating to the Property owned by such Seller (“Assignment and Assumption of Leases and Contracts”); 

(e) For each Property, two (2) duplicate originals of an Assignment and Assumption of Resident Agreements, in the form and
content attached hereto as Exhibit “G”, prepared and executed by the applicable Seller (or, as the case may be, the applicable SNF Subsidiary), assigning and conveying to Purchaser, at no cost or expense to such Seller (or, as
the case may be, the applicable SNF Subsidiary), and without representation or warranty (other than as expressly set forth herein), all of such Seller’s (or, as the case may be, the applicable SNF Subsidiary’s) right, title and interest
under the Resident Agreements (including any pre-paid rents attributable to the time period on and after the Closing Date and/or refundable security deposits thereunder) relating to the Facility owned by such Seller (“Assignment and
Assumption of Resident Agreements”); 
 (f) For each Seller, a non-foreign affidavit, in the form and content
attached hereto as Exhibit “H”, prepared and executed by such Seller (“Non-Foreign Affidavit”), any state tax withholding affidavits as applicable, and an IRS Form 1099; 

(g) For each Seller, a Bringdown Certificate executed by a duly authorized officer of such Seller certifying to Purchaser that,
as of the Closing Date, the representations and warranties made by such Seller set forth in Section 9.2 of the Agreement remain true and correct in all material respects. 

(h) All transfer tax and other tax returns, if any, which any Seller is required by law to execute and acknowledge and to
deliver, either individually or together with Purchaser, to any governmental authority as a result of the sale, if and to the extent the same are available as of the Closing Date; 

(i) All of the plans (including “as built” plans), drawings, blueprints and specifications relating to the Properties
where available, which are in any Sellers’ possession or control; 

  
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 (j) All written warranties of manufacturers, suppliers and contractors, if any,
in possession or control of each Seller and in effect on the Closing Date; 
 (k) All keys to the Properties which are in the
possession or control of any Seller (which will be available at each respective Facility); 
 (l) A closing statement
prepared by Escrow Agent and reasonably approved by Sellers and Purchaser setting forth, among other things, all payments to and from Escrow in connection with the purchase and sale of the Properties (the “Closing Statement”); 

(m) For each Property, one (1) original of the owner’s affidavit (including a gap indemnity), in the form attached
hereto as Exhibit “I”, prepared and executed by the applicable Seller. 
 (n) All other documents consistent
with the express provisions of this Agreement and reasonably required by Escrow Agent (including without limitation, evidence reasonably satisfactory to Escrow Agent that all necessary authorizations of the transaction contemplated hereby have been
obtained by each Seller), each in form and substance reasonably acceptable to Sellers; 
 (o) For each Property, a form
Notice to Residents, in the form and content attached hereto as Exhibit “J”, prepared and executed by the applicable Seller (or, as the case may be, the applicable SNF Subsidiary) (collectively, the “Notices to
Residents”); 
 (p) Any documents or certificates necessary to transfer title to, or leasehold interests in, any
motor vehicles being conveyed in connection herewith, each of which will be located at a Property; 
 (q) To the extent not
previously delivered to Purchaser and within the possession or control of Sellers or their Affiliates, originals (or copies, if originals are not available) of all items within the Due Diligence Materials (including, to the extent available,
originals of all Resident Agreements, Assumed Contracts, and Permits and copies of all resident correspondence and billing files and records), which need not be deposited with Escrow Agent but instead may be left at the applicable Facility; 

(r) Any releases necessary to extinguish the Existing Liens, as required hereby; 

(s) For each Property, a termination of property management agreement executed by the applicable Seller (or, as the case may
be, the applicable SNF Subsidiary) and Manager; 
 (t) With respect to the Licensed Facilities known as “Isle at
Watercrest – Bryan” and “Isle at Cedar Ridge”, a termination of the Lease entered into by and between the Seller of each such Licensed Facility and the applicable SNF Subsidiary; 

  
 - 25 - 

 (u) Evidence that Seller (or, as the case may be, the applicable SNF Subsidiary)
has sent termination notices with respect to any Rejected Contracts relating to the Facility owned by such Seller, as applicable; 

(v) The Assumption Documents executed by the Existing Borrower Parties; and 

(w) Such other instruments or documents as may be reasonably necessary to effect or carry out the covenants and obligations to
be performed by Sellers pursuant to this Agreement. 
 7.3 Action Prior to the Closing Date by Purchaser. Purchaser agrees that on or
before 1:00 p.m. (Eastern Time) on the Closing Date, Purchaser will deposit with Escrow Agent the Closing Payment and all documents (executed and acknowledged, if appropriate) necessary to comply with the terms of this Agreement, including without
limitation: 
 (a) To the extent that applicable law requires that the Deeds, transfer tax or other tax forms, or recording
forms be executed by the grantee, such instruments shall be executed by Purchaser and acknowledged in the presence of a Notary Public in accordance with the laws of the state in which the particular Property is located; 

(b) If applicable, pursuant to Section 14.4 below, for each Property, two (2) fully executed duplicate originals of
the Assignment of Purchase Contract to Applicable Property executed by Purchaser and its assignee in the form and content attached hereto as Exhibit “K”; 

(c) For each Property, two (2) duplicate originals of the Assignment and Assumption of Intangible Property, executed by
Purchaser; 
 (d) For each Property, two (2) duplicate originals of the Assignment and Assumption of Leases and
Contracts executed by Purchaser; 
 (e) For each Property, two (2) duplicate originals of the Assignment and Assumption
of Resident Agreements executed by Purchaser; 
 (f) A Bringdown Certificate executed by a duly authorized officer of
Purchaser certifying to each Seller that, as of the Closing Date, the representations and warranties made by Purchaser set forth in Section 9.1 of the Agreement remain true and correct in all material respects. 

(g) The Assumption Documents executed by the New Borrower Parties; 

(h) An executed Closing Statement; and 

(i) Such other funds, instruments or documents as may be reasonably necessary to effect or carry out the covenants and
obligations to be performed by Purchaser pursuant to this Agreement. 

  
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 7.4 Recording of Deeds. Subject to Section 10.3 below, Escrow Agent will cause the
Deeds to be dated as of the Closing Date and thereafter promptly recorded in the Official Records, and all other conveyance documents deposited with Escrow Agent to be dated as of the Closing Date, when (but in no event after the Closing Date)
Escrow Agent (i) is prepared to issue the title insurance policies to be issued to Purchaser as contemplated in this Agreement, and (ii) holds for the account of Sellers and Purchaser all items and funds (if any) to be delivered to Sellers
and Purchaser through the Escrow, after payment of costs, expenses, disbursements and prorations chargeable to Sellers or Purchaser pursuant to the provisions of this Agreement. 

7.5 Prorations. 

(a) With respect to each Property, all non-delinquent real estate and personal property general and special taxes and
assessments for the Property and the Land for the current assessment year of the applicable taxing authority in which the Closing Date occurs shall be prorated as of the Closing Date. It is acknowledged and agreed that the tax assessment year in
Illinois is one year behind the current calendar year and therefore, assuming a 2013 Closing for the Properties, non-delinquent real estate taxes for the Property in Illinois will be prorated between the parties for the 2012 tax year only. If the
exact amount of taxes is not known at Closing, the proration will be based on an amount equal to one hundred five percent (105%) of the prior assessment year’s taxes and shall be adjusted directly between the applicable Seller and
Purchaser once actual figures become available after Closing. Notwithstanding anything to the contrary in this Agreement, (i) each Seller shall retain all right, title and interest in and to any and all property tax (both real property and
personal property) refunds and claims for refunds with respect to the its respective Property for any period prior to the Closing Date, and (ii) each Seller is responsible for all taxes due and payable prior to the Closing Date in connection
with its respective Property. Purchaser shall assume all obligations accruing from and after the Closing Date with respect to any agreements relating to the appealing of real estate taxes or real estate tax assessments, including the obligation to
pay portions of amounts of real estate tax savings and costs and expenses related thereto. With respect to each Property, Seller shall be responsible for all sales, use and other transfer taxes imposed in connection with the sale and transfer of the
Personal Property and the Intangible Property. 
 (b) With respect to each Property, the applicable Seller shall request each
utility company providing utility service to the applicable Real Property to cause all utility billings to be closed and billed as of the Closing Date in order that utility charges may be separately billed for the period prior to the Closing Date
and the period on and after the Closing Date. In the event any such utility charges are not separately billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred
during the billing period in which the Closing Date occurs. Each Seller shall receive a credit at Closing for any Utility Deposits with respect to its respective Facility that are transferred or made available to Purchaser. Purchaser shall arrange
for placing all utility services and bills in its own name as of the Closing Date. 

  
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 (c) With respect to each Property, all revenues from Facility operations accruing
or relating to the period up to and including 11:59 p.m. in the jurisdiction in which the Properties are located on the day immediately preceding the Closing Date (“Cut-Off Time”) shall belong to the applicable Seller. All revenues
from Facility operations accruing or relating to the period after the Cut-Off Time shall belong to Purchaser. Without limiting the foregoing, it is the agreement and intent of the parties that all revenues shall be prorated as of the Closing Date.

 (d) With respect to each Property, all obligations and liabilities and accounts payable for the Facility and the Real
Property owing as of the Closing Date for merchandise, equipment, supplies and other materials and services paid, incurred or ordered shall be prorated between the applicable Seller and Purchaser as of the Closing Date based on whether the
merchandise, equipment, supplies and other materials remain in inventory as of the Closing Date and when the services were, or are, be rendered, i.e., prior to, or on or after the Closing Date. 

(e) Except as covered by the terms of Section 7.5(a) above, with respect to each Property, all water and sewer charges,
taxes (other than ad valorem property taxes), and any unpaid taxes payable in arrears, shall be prorated as of the Closing Date. Each Seller will be credited for that portion of taxes and fees paid by such Seller allocable to the period after the
Closing Date. 
 (f) With respect to each Property, all payments and receipts, as applicable, under the Assumed Contracts
shall be prorated between Purchaser and the applicable Seller as of the Closing Date. The applicable Seller shall receive a credit for all prepayments and deposits thereunder which are transferred to Purchaser. In consideration for Purchaser’s
agreement to honor (i) any written policy currently in place at a Facility with respect to waitlist deposits or (ii) the terms of those Assumed Contracts entered into by and between a Seller and a prospective resident (i.e., to admit the
prospective resident as a resident of the applicable Facility on the same terms and conditions as such prospective resident would have been admitted to the applicable Facility had Seller still owned the Facility), Purchaser shall receive a credit
for all waitlist deposits made by prospective residents. 
 (g) With respect to each Property, all other income derived by
the applicable Seller from the Property accruing or relating to the period up to and including the Cut-Off-Time shall be paid to such Seller. All other income derived by such Seller from the Property accruing or relating to the period on and after
the Cut-Off-Time shall be paid to Purchaser. 
 (h) Subject to Section 7.5(i) below, with respect to each Property, the
Accounts Receivable shall be and remain the property of the applicable Seller subsequent to the Closing of the transaction contemplated hereby. At the Closing, each Seller shall prepare a list of its outstanding Accounts Receivable as of the Cut-Off
Time, specifying the name of each account and the amount due to it. Purchaser shall hold in trust for each Seller any funds which are received by Purchaser as payment of such Seller’s Accounts Receivable, i.e., if Purchaser actually collects
any such amounts, Purchaser shall pay the 

  
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monies collected in respect thereof (net of actual collection costs) to such Seller promptly following the end of the calendar month in which such amounts are collected, accompanied by a
statement showing the amount collected on each such account. Other than the foregoing, Purchaser shall have no obligation with respect to any such account, and Purchaser shall not be required to take any legal proceeding or action to effect
collection on behalf of any Seller. It is the intention of Purchaser and Sellers that although the Accounts Receivable shall be and remain the property of Sellers, still, if any such accounts are paid to Purchaser, then Purchaser shall collect same
and remit to the applicable Seller in the manner above provided. Nothing herein contained shall be deemed to preclude Sellers from enforcing collection of the Accounts Receivable which are owed to Sellers; provided, in no event shall Seller be
entitled to commence termination or eviction proceedings with respect to any Lease or Resident Agreement. The provisions of this Section shall survive Closing. 

(i) With respect to each Property, all rentals and other resident charges, including any community fees and reimbursements, in
respect to the month in which the Closing Date occurs (the “Current Month”) shall be prorated as of the Cut-Off Time, whether or not actually received prior to the Closing Date. All rentals and other charges received by Purchaser
from a resident under a Resident Agreement or a tenant under Lease after the Closing Date that are not Sellers’ Accounts Receivable shall be applied first to collection costs and then to the most recently accrued obligation of such resident or
tenant, as applicable. After application as set forth above, Purchaser shall promptly remit to the applicable Seller that portion of rentals and other resident charges received after the Closing Date attributable to periods prior to the Cut-Off
Time. Notwithstanding any language to the contrary herein, (i) to the extent that any Seller receives any payment with respect to the Licensed Facility that was owned by such Seller after the Cut-Off Time from a third-party payor (such as the
Medicare program) that relates to periods after the Cut-Off Time, Seller shall hold in trust for Purchaser such funds and pay such funds to Purchaser promptly following the end of the calendar month in which such funds are collected and (ii) to
the extent that Purchaser receives any payment with respect to a Licensed Facility after the Cut-Off Time from a third-party payor (such as the Medicare program) that relates to periods before the Cut-Off Time, Purchaser shall hold in trust for the
applicable Seller such funds and pay such funds to the applicable Seller at the end of the calendar month in which such funds are collected. Each Seller shall retain, with respect to its respective Property, the right to pursue directly collection
of amounts due on account of the period prior to the Cut-Off Time, provided, in no event shall Seller be entitled to commence termination or eviction proceedings with respect to any Lease or Resident Agreement. 

(j) Purchaser shall receive a credit for (a) prepaid rents and other resident charges, including any community fees,
applicable to periods after the Cut-Off Time, and (b) any refundable security deposits (and if Legal Requirements or any agreements require a landlord to be accountable for interest on such refundable security deposits, any accrued interest
owed thereon), and (c) any other funds which are held by a Seller or SNF Subsidiary in trust for the benefit of a Facility resident (which, as of the Effective Date, consist only of funds in the amount of approximately $2,500 held by the Seller
of the Facility known as the “Isle at Cedar Ridge” or its applicable SNF Subsidiary) which credit shall be applied against the Allocated Purchase Price for the Property at which there exist prepaid rents and other resident charges or
refundable security deposits. 

  
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 (k) Except as otherwise expressly provided in this Agreement, all apportionments
and adjustments shall be made in accordance with generally accepted accounting principles. The computation of the adjustments shall be jointly prepared by Sellers and Purchaser. In the event any prorations or apportionments made under this
Section 7.5 shall prove to be incorrect for any reason, then any party shall be entitled to an adjustment to correct the same in accordance with the remaining terms of this Section 7.5(k). To the extent the exact amount of any adjustment
item provided for in this Section 7.5 cannot be precisely determined on the Closing Date, such prorations and apportionments shall be tentatively prorated on the basis of the best data then available and re-prorated when the information is
available. Notwithstanding the foregoing, any adjustment or re-proration pursuant to the two immediately preceding sentences shall be made, if at all, within one hundred eighty (180) days after the Closing Date (except with respect to taxes and
assessments, in which case such re-proration shall be made within sixty (60) days after the information necessary to perform such re-proration is available). All payments to be made as a result of the final results of the adjustments shall be
paid to the party entitled to the same within thirty (30) days after the final determination thereof. Sellers and Purchaser agree that none of the insurance policies relating to any Property will be assigned to Purchaser (and each Seller shall
pay any cancellation fees or minimum earned premiums resulting from the termination of the policies relating to its respective Property) and Purchaser shall be responsible for arranging for its own insurance as of the Closing Date. 

(l) With respect to the Mansfield IL Property, any amounts prepaid with respect to the Mansfield IL Loan which would otherwise
be owing for periods following the Closing Date shall be credited to the account of the Mansfield IL Seller. Any funds or other security held by or for the benefit of the Mansfield IL Lender under any reserve or escrow accounts shall be replaced by
the Purchaser so that such funds or other security may be released to the Mansfield IL Seller or, alternatively, an amount equal to the amount of funds or other security held by or for the benefit of the Mansfield IL Lender under any reserve or
escrow accounts shall be credited to the account of the Mansfield IL Seller, all in accordance with the provisions of Section 2.12(b)(v). 

(m) To the extent that any item of income, expense or obligation referred to under the provisions of this Section 7.5 is
income attributable to, or the cost or expense of, a SNF Subsidiary (rather than a Seller), for the purpose of this Section 7.5, such item of income, expense or obligation shall be allocated as between the Seller of the Facility at which the
SNF Subsidiary serves as operator and Purchaser in accordance with the provisions of this Section 7.5. The provisions of this Section 7.5 shall survive Closing. 

7.6 Closing Costs. With respect to the title insurance policy insuring Purchaser’s title to the Properties, Seller shall bear the
cost of the premium for the base property title insurance policy but Purchaser shall bear the cost of any and all endorsements to the title insurance policy requested by Purchaser or its lender. Purchaser shall bear the cost of any update to the
Survey obtained by Purchaser, and one-half of all escrow and closing fees relating to the sale of the 

  
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Property imposed by Escrow Agent. Sellers shall pay any compensation due to Financial Advisor, the state and municipal transfer taxes for the Property located in Illinois (it being acknowledged
and agreed there are no state or municipal transfer taxes in Texas), the per page recording fees for each Deed, and one-half (1/2) of all escrow and closing fees relating to the sale of such Properties (but, in each case, not in connection with
any financing by Purchaser, which shall be paid solely by Purchaser). Each party shall pay its own attorneys’ fees pertaining to the sale of the Properties. Purchaser shall be responsible for the payment of any mortgage taxes or recording fees
for the mortgage securing Purchaser’s loan. All other costs pertaining to the sale of each Property shall be allocated as is customary for real estate transactions where the applicable Property is located; provided that any such closing costs
that are to be paid by Sellers shall be allocated among Sellers so that each Seller shall be responsible solely for that portion of such closing costs associated with the sale of Seller’s Property. 

7.7 Possession. Purchaser shall be entitled to sole possession of each Property on the Closing Date, subject to the possessory rights
of any resident of the Facility and the terms of the Leases and Assumed Contracts. 
 7.8 Post-Closing Audit. Sellers acknowledge and
agree to assist the Purchaser in conducting, no later than seventy-four (74) days following the Closing Date, an audit of property-level financials for each 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, Sellers agree to obtain and provide to the auditors, at no cost to Sellers, any and all
data and financial information, except for information constituting Excluded Assets, in the possession of Sellers that are necessary or required by the auditors in connection with their preparation and conducting of the foregoing audit. The rights
and obligations of Purchaser and Sellers under this Section 7.8 shall survive Closing. 
 VIII.  

ADDITIONAL COVENANTS AND INDEMNITIES 

8.1 Purchaser’s Covenants. 

(a) Purchaser covenants and agrees to defend, indemnify, protect, defend, and hold harmless Sellers, and their respective
affiliates, owners, members, partners, employees, lenders, agents and representatives, from and against any and all Claims (i) arising from the acts and omissions of Purchaser and its agents, employees and contractors occurring in connection
with or as a result of, any inspections, tests or examinations of or to the Properties prior to the Closing Date, and (b) caused by or arising out of any material misrepresentation by Purchaser in connection with this Agreement. This indemnity
shall survive Closing for the Survival Period. 
 (b) Prior to Closing, Purchaser shall use its commercially reasonable
efforts to apply for and diligently pursue all required licenses and approvals necessary to permit Purchaser to operate the Licensed Facilities as assisted living, Alzheimer’s care or skilled nursing facilities, as applicable, and to
participate in Medicare and Medicaid, as 

  
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applicable, under Purchaser’s name or the name of Purchaser’s assignee (“Purchaser Permits”). In furtherance of the preceding sentence, Purchaser shall use commercially
reasonable efforts to file all applications and other documents required by the applicable governmental or administrative agency or authority for all such required Purchaser Permits as soon as reasonably practical and, in all events, on or prior to
the Licensing Date. 
 (c) Purchaser shall deliver to the Mansfield IL Seller its Phase I environmental report with respect
to the Mansfield IL Property promptly upon Purchaser’s receipt of such report. 
 8.2 Seller Covenants. Each Seller (but solely
for itself and its own Property, and not for any other Seller or any other Property) covenants to Purchaser as follows: 

(a) Subject to the terms of this Agreement, Seller, during the term of this Agreement, shall (or, as the case may be, shall
cause the applicable SNF Subsidiary to) carry on the business and operations of its Facility in substantially the same manner as heretofore carried on by it including incurring operating expenses consistent with past practices. Seller shall, during
the term of this Agreement, use commercially reasonable efforts to comply in all material respects with all Legal Requirements affecting its respective Property and all terms, covenants and conditions of any Assumed Contracts, Leases, Resident
Agreements or Business Agreements affecting its respective Property. Prior to the Closing Date, Seller shall maintain (or replace with policies of like amounts) all existing insurance policies insuring its Property and the operation of its Facility.
Seller shall maintain its Inventory consistent with its past practices and shall replenish the same consistent with its past practices. Seller may extend, amend, modify or terminate any of the Contracts relating to its Property as it deems
appropriate to operate, service and maintain its Property consistent with normal business practices, and may enter into new Contracts; provided, however, that so long as Purchaser is not in default of any of its obligations under this Agreement
beyond the expiration of any applicable notice or cure period, then Seller shall not (or, as the case may be, shall cause the applicable SNF Subsidiary not to) without the written consent of Purchaser (which consent shall not be unreasonably
withheld, conditioned or delayed), enter into (i) any new Contract or amend or modify any existing Contract that would be binding on Purchaser or the Real Property following the Closing other than those involving payments of less than Five
Thousand and NO/100 Dollars ($5,000.00) per annum or which are terminable with not more than sixty (60) days’ notice without penalty except to the extent such amendment or modification is required under the Legal Requirements, or
(ii) any additional Business Agreements or Resident Agreements or amend or modify any existing Business Agreement or Resident Agreement affecting its Property that would be binding on Purchaser following Closing (other than new Resident
Agreements, renewals or modifications of existing Resident Agreements and Leases entered into in the ordinary course of business at its Property, which, in the case of Resident Agreements, shall be on the standard form of resident lease for such
Facility, and at rental rates, promotional allowances, concessions, length of term and on other terms and conditions consistent in all material respects with past practices), except to the extent such amendment or modification is required under the
Legal Requirements. Other than in the ordinary course 

  
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of business at its Property, no part of Seller’s (or, as the case may be, the applicable SNF Subsidiary’s) 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 or delayed. 

(b) To the extent that it owns Real Property on which a Licensed Facility is located, Seller shall (or shall cause the
applicable SNF Subsidiary or use commercially reasonable efforts to cause the Manager to) cooperate with Purchaser in all commercially reasonable respects, including by executing and/or delivering necessary or desirable applications and other
information and documents, to facilitate the issuance and/or transfer of the Purchaser Permits (as defined in Section 8.1(b) above). Without limiting the foregoing, if applicable, Seller shall request Manager to provide such information and
documents as may be required of Manager in connection with Purchaser’s application for the Purchaser Permits. If Purchaser requests Seller to advance (or otherwise consents to the advancement of) any governmental or other administrative agency
fees in connection with such cooperation, Purchaser shall promptly reimburse Seller for any such fees so advanced on behalf of Purchaser. 

(c) Seller shall promptly notify Purchaser to the extent Seller receives written notice from a third party or otherwise
acquires knowledge of any event or occurrence that could be reasonably anticipated to have a material adverse effect on the operation, leasing, or condition of its respective Property, including fire or other casualty loss, or receipt of notice of
condemnation or violation of any Legal Requirement or order, including without limitation, any Legal Requirement relating to health, safety, fire, environmental or zoning that could be reasonably anticipated to have a material adverse effect on the
operation, leasing, or condition of its respective Property. 
 (d) Until such time as this Agreement terminates, Sellers
shall not solicit or initiate any inquiries or proposals from, negotiate with, or consider the merits of any inquiries or proposals from, any person relating to any sale of the Properties. 

(e) Seller shall file as and when due any final Medicare, Medicaid (however denominated in the applicable state) or other third
party payor cost reports with respect to periods prior to Closing and shall provide Purchaser and Purchaser’s manager with a copy thereof, it being understood and agreed that Seller’s failure to timely file such cost reports could
adversely affect the reimbursement paid to Purchaser or Purchaser’s manager from and after the Closing. Upon request Purchaser or Purchaser’s manager shall have the right to review and consult with respect to any such cost reports before
the filing thereof and to facilitate such review Seller shall provide Purchaser or Purchaser’s manager with a copy thereof no later than three (3) days prior to the date on which the same are required to be filed; provided, however, Seller
shall have no obligation to accept any suggestions or requests that may be made by Purchaser with respect to changes to be made to such cost reports. 

(f) On the Closing Date Seller shall assign to Purchaser its Medicare provider agreements in accordance with and as permitted
by any and all applicable laws and orders, rules, requirements and regulations of the Centers for Medicare and Medicaid 

  
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Services (“CMS”), subject to any and all other applicable federal or state statutes and regulations regarding the same. All liability under Seller’s Medicare and Medicaid
provider agreements for (i) actions and events arising prior to the Closing Date and (ii) for reimbursement payments made to Seller with respect to periods prior to the Cut-Off Time which the applicable federal or state regulators contend
were excessive and must be repaid, will be the responsibility of Seller. All rights to payment for services rendered prior to the Closing Date will be and remain the property of Seller. Purchaser and Seller acknowledge and agree that Purchaser is
not expected to have received its “tie in” notice from CMS with respect to the Medicare provider agreement or a new Medicaid provider agreement as of the Closing Date. Accordingly, in consideration for, and as a material inducement to,
Seller’s and Purchaser’s agreement to consummate the transaction provided for herein prior to Purchaser’s receipt thereof, Purchaser will have the right to bill under Seller’s Medicare (but not Medicaid) provider numbers for a
period commencing on the Closing Date and ending on the earlier to occur of ninety (90) days after the Closing Date or the date on which Purchaser’s Medicare tie in notices are issued. 

(g) The Mansfield IL Seller shall, using its commercially reasonable efforts, diligently and in good faith, cooperate (at no
cost, expense or liability to Seller) with Purchaser’s efforts to obtain the Mansfield IL Lender’s consent to the sale of the Mansfield IL Property to, and the assumption of the Mansfield IL Loan by, Purchaser’s applicable designee.
Without limiting the foregoing, the Mansfield IL Seller shall submit to the Mansfield IL Lender within five (5) days after written request therefor, in writing, with a copy to Purchaser, all information required of the Mansfield IL Seller with
respect to the assumption of the Mansfield IL Loan. From the Effective Date to the date that Purchaser’s applicable designee assumes the obligations of the Mansfield IL Seller under the Mansfield IL Loan Documents, the Mansfield IL Seller shall
use its commercially reasonable efforts to comply in all material respects with all terms, covenants and conditions of the Mansfield IL Loan Documents. 

8.3 Employee Matters. With respect to each Property: 

(a) On the Closing Date, the applicable Seller shall pay the applicable employees or (at Purchaser’s election) credit
Purchaser with all employee salaries, wages, and other compensation (including accrued vacation days but not including sick leave), including any applicable federal, state and local taxes, for any employees of its respective Facility that have
accrued up to the Cut-Off Time and remain unpaid. Subject to the provisions of Sections 8.3(b), Seller (solely with respect to its respective Property and not for any other Seller or any other Property) shall indemnify, defend and hold harmless
Purchaser against any and all labor or employment claims, liabilities or obligations (including, without limitation, reasonable attorneys’ fees and costs) that arise or accrue before, or arise out of events occurring before, the Closing Date,
which indemnity shall survive Closing. Purchaser shall be responsible for any severance pay due to any employees who accept employment with Purchaser or Manager as of Closing and who Purchaser later elects to terminate on or after the Closing Date.
Sellers shall cooperate with Manager to effectuate the transition of the employment of the employees of the Facilities to Manager upon Closing. 

  
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 (b) On or before the day that is five (5) days after the end of the Due
Diligence Period, each Seller shall provide Purchaser with a list of all employees at its respective Property and, to the extent permitted under the applicable Legal Requirements, access to other pertinent information as reasonably requested by
Purchaser (including, to the extent permitted under the applicable Legal Requirements, access to review the employee file and information on the terms of employment of each employee). After the expiration of the Due Diligence Period, except with
respect to any Facility’s Executive Director (access to whom is governed by the terms of Section 5.2), each Seller shall afford Purchaser with opportunities to meet with any employees of such Seller or Manager who are involved in the
operation of each Facility and each Property. Such meetings shall be at such times as mutually agreed to by the applicable Seller and Purchaser and such Seller shall be entitled to have a representative present at any such meetings with the
employees at its Property. As of the Closing Date, Purchaser shall instruct Manager to offer employment to a sufficient number of the then-current employees of each Facility (and to hire those employees who accept such offers) such that no notices
shall be required or due to any person or entity under the federal Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any other comparable state law. Nothing in this Section 8.3(b) shall, however, create any
rights in favor of any person not a party to this Agreement, including employees of any Facility, or constitute an employment agreement or condition of employment for any employee of any Seller (or its property manager) or any affiliate of any
Seller (or its property manager) who is hired by Purchaser. Purchaser shall indemnify, defend and hold harmless each Seller, and its respective Affiliates, owners and employees from and against (i) any and all claims, penalties, damages,
liabilities, actions, costs and expenses (including reasonable attorneys’ fees) under the WARN Act or any comparable state law, to the extent that such claims, penalties, damages and expenses arise in connection with Purchaser’s failure to
comply with the provisions of this Section 8.3(b) and (ii) any and all labor or employment claims, liabilities and obligations (including, without limitation, reasonable attorneys’ fees and costs) that arise or accrue from or after,
or arise out of events occurring from or after the Closing Date, including, without limitation, all claims arising as a result of the termination by Purchaser of any Facility employee or personnel performing services at or for a Facility. The
foregoing indemnity shall survive Closing. 
 (c) Seller (solely with respect to its respective Property and not for any
other Seller or any other Property) shall and hereby agrees to indemnify and save Purchaser, and its Affiliates and property managers, harmless from and against any liability for wages, salaries, bonuses, and accrued vacation days to be paid to
employees on account of services rendered prior to Closing, except to the extent the same is credited to Purchaser pursuant to Section 8.3(a) above for any employees retained by Purchaser or Manager following Closing. Notwithstanding anything
to the contrary herein contained, there shall be no apportionment or proration of medical, pension, welfare benefits, other employee benefits or other fringe benefits (hereinafter collectively referred to as “benefits”) and Seller
(solely with respect to its respective Property, and not for any other Seller or any other Property) shall remain liable for and hereby indemnify and save Purchaser, and its affiliates, harmless from and against all benefits due to employees under
plans in which employees participate prior to Closing, and all payments due on the plans providing such benefits. Sellers agree to give all affected employees written notice 

  
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of termination of participation of employees working at any Property in any applicable 401(K) or other pension or retirement plan affecting the employees. The obligations of Sellers and Purchaser
set forth in this Section 8.3 shall survive Closing. 
 8.4 Extension to Obtain Licenses. In the event that Purchaser has not
received either written or verbal confirmation from, as applicable, the Texas Department of Aging and Disability Services and/or the Illinois Department of Public Health that the parties can consummate the transactions contemplated by this Agreement
with respect to any Licensed Facility prior to the Closing Date, Purchaser and Sellers shall each have the right to extend the Closing Date for up to two (2) periods of thirty (30) days each by written notice to the other party. 

8.5 Additional Extension Right. Purchaser shall have the right (the “Section 8.5 Extension Right”) to extend the
Closing Date with respect to any or all of the Properties provided that (a) Purchaser delivers written notice to Seller within five (5) business days prior to the then scheduled Closing Date, which notice (the “Extension
Notice”) shall include (i) a list of those Properties for which Purchaser desires to extend the Closing Date (each, an “Extended Closing Date Property” and, collectively, the “Extended Closing Date
Properties”) and (ii) the date on which Purchaser will proceed to Closing with respect to the Extended Closing Date Properties (which, in accordance with the terms of this Section 8.5, shall be no later than February 28,
2014), (b) the Closing Date with respect to any Extended Closing Date Property occurs on or prior to February 28, 2014 and (c) concurrently with its delivery of its initial Extension Notice to Seller, Purchaser deposits with Escrow
Agent an additional deposit in the amount equal to one percent (1%) of the sum of the Allocated Purchase Prices for each of the Extended Closing Date Properties. Assuming that Purchaser exercises its right under this Section 8.5 with
respect to some but not all Properties, Purchaser and Seller shall (x) proceed to Closing on the then scheduled Closing Date with respect to any Property that is not an Extended Closing Date Property, (y) instruct Escrow Agent to retain in
escrow the Allocated Deposit Amount for any Extended Closing Date Property and (z) exclude any Extended Closing Date Property from the proration requirements of Section 7.5 until the Closing with respect to such Extended Closing Date
Property occurs. The Allocated Purchase Price for any Extended Closing Date Property will be increased (but not decreased) on a Property by Property basis to account for any increases (but not decreases) in an Extended Closing Date Property’s
performance in accordance with the terms of Exhibit “N”. If the Closing Date for any Extended Closing Date Property occurs on or after January 1, 2014 and, on the Closing Date for such Extended Closing Date Property, capital
gain tax rates have increased from their level on December 31, 2013, then the Allocated Purchase Price (as adjusted in accordance with Exhibit “N”) for such Extended Closing Date Property will be increased by the product of One
Million Five Hundred Thousand Dollars ($1,500,000) and the quotient of the Allocated Purchase Price for such Extended Closing Date Property divided by the Purchase Price. Furthermore, if any Properties located in Texas constitute Extended Closing
Date Properties and such Properties close on different Closing Dates, Purchaser shall, notwithstanding the provisions of Section 7.6, pay the difference between the premium for the base title insurance policy(ies) for Properties closing on more
than one Closing Date and the premium for the base title insurance policy if such Properties closed on a single Closing Date. Purchaser may exercise its Section 8.5 Extension Right on more than one (1) occasion with respect to any Property
included in Purchaser’s initial Extension Notice so long as Purchaser complies with the terms of this Section 8.5 on each occasion that it exercises its 

  
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Section 8.5 Extension Right. If any Extended Closing Date Property has not closed on or prior to February 28, 2014, then either Seller or Purchaser shall have the right to terminate
this Agreement solely as it relates to any such Extended Closing Date Property by giving notice to the other party. Subject to the rights of Purchaser set forth in this Agreement with respect to a Seller default (in which case the provisions of
Section 11.2 shall be applicable) and subject to the rights of both parties with respect to the failure of a condition precedent (in which case the provisions of Section 10.3 shall be applicable), in the event of the termination of this
Agreement solely as it relates to any such Extended Closing Date Property by either party, the Allocated Deposit Amount for such Extended Closing Date Property shall be delivered to Seller and the provisions of Section 11.1 shall apply. 

IX. 
 REPRESENTATIONS AND
WARRANTIES 
 9.1 Purchaser’s Representations and Warranties. Purchaser represents and warrants to Sellers that as of the
date hereof and as of the Closing Date: 
 (a) Purchaser (i) is a limited partnership, duly formed, validly existing,
and in good standing under the laws of the State of Delaware (and any assignee of Purchaser will be a limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware as of the Closing Date),
(ii) is, or on the Closing Date will be, duly qualified to do business in each state where such qualification is necessary with respect to the Properties, and (iii) has the full power and authority to enter into this Agreement and to carry
out the transactions contemplated hereby to be carried out by it. 
 (b) Subject only to the approval of its Board of
Directors, which approval will be deemed to have been obtained prior to the end of the Due Diligence Period if Purchaser does not terminate this Agreement pursuant to Section 2.3, the performance of this Agreement and the transactions
contemplated hereunder by Purchaser have been duly authorized by all necessary action on the part of Purchaser, and this Agreement is binding on and enforceable against Purchaser in accordance with its terms. Purchaser shall, on or prior to the
Closing Date, furnish Sellers with certified resolutions evidencing that Purchaser has been duly authorized to enter into and perform this Agreement and the transactions contemplated hereunder. No further consent of any shareholder, creditor, board
of directors, governmental authority or other party to such execution, delivery and performance hereunder is required. The person(s) signing this Agreement, and any document pursuant hereto on behalf of Purchaser, has full power and authority to
bind Purchaser. 
 (c) Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby
will violate any restriction, court order, judgment, law, regulation, charter, bylaw, instrument or agreement to which Purchaser is subject. 

(d) Purchaser has not (i) made any general assignment for the benefit of creditors, (ii) filed any voluntary petition
in bankruptcy or suffered the filing of an 

  
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involuntary petition in bankruptcy by Purchaser’s creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Purchaser’s assets, or
(iv) suffered the attachment or other judicial seizure of all, or substantially all, of Purchaser’s assets, (v) admitted in writing its inability to pay its debts as they come due, and has no current plans to do or undertake, any of
the foregoing. 
 9.2 Sellers’ Representations and Warranties. Subject to the provisions of Section 9.5, Section 11.3,
Section 11.4, and Section 14.15, each Seller represents and warrants (but solely for itself and its own Property, and not for any other Seller or any other Property) to Purchaser that as of the date hereof and as of the Closing Date: 

(a) Seller is a limited partnership, as reflected on Exhibit “A-1” to this Agreement, duly organized under the
laws of the state of its formation, validly existing, and in good standing under the laws of such state, qualified or registered to do business in the state where its Property is located, and has the full power and authority to enter into this
Agreement and to carry out the transactions contemplated hereby to be carried out by it. 
 (b) The performance of this
Agreement and the transactions contemplated hereunder by Seller have been duly authorized by all necessary action on the part of Seller, and this Agreement is binding on and enforceable against Seller in accordance with its terms. Seller shall, on
or prior to the Closing Date, furnish Purchaser with certified resolutions evidencing that Seller has been duly authorized to enter into and perform this Agreement and the transactions contemplated hereunder. No further consent of any member,
manager, creditor, governmental authority or other party to such execution, delivery and performance hereunder is required. The person(s) signing this Agreement, and any document pursuant hereto on behalf of Seller, has full power and authority to
bind Seller. 
 (c) 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 its respective Property (or any portion thereof) are subject. 

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

(e) There are no demands, complaints, actions, suits or arbitrations pending or, to Seller’s actual knowledge, threatened
nor, to Seller’s actual knowledge, are there any governmental investigations or other proceedings pending or threatened against or affecting such Seller and its respective Property (or any portion thereof) except demands, complaints, actions,
suits, arbitrations, governmental investigations or other proceedings that (i) are fully covered by insurance policies (subject to customary deductibles) or (ii) are listed on Schedule “9.2(e)” attached hereto. 

(f) Neither Seller nor any general partner of Seller has (i) made any general assignment for the benefit of creditors,
(ii) filed any voluntary petition in bankruptcy or 

  
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suffered the filing of an involuntary petition in bankruptcy by such Seller’s or such general partner’s creditors, (iii) suffered the appointment of a receiver to take possession
of all, or substantially all, of such Seller’s or such general partner’s assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of such Seller’s or such general partner’s assets, or
(v) admitted in writing its inability to pay its debts as they come due and has no current plans to do or undertake any of the foregoing. 

(g) Attached hereto as Schedule “9.2(g)” is a true and complete, in all material respects, list of all
Material Contracts as of the Effective Date, and, to Seller’s knowledge, is inclusive of all Contracts as of the Effective Date. Attached hereto as Schedule “2” is a true and complete, in all material respects, list of all
National Contracts as of the Effective Date. Except as set forth on Schedule “9.2(g)” attached hereto, as of the Effective Date, neither Seller nor the applicable SNF Subsidiary (as the case may be) has received written notice from
any party to the Material Contracts related to Seller’s respective Facility of the occurrence of a material default by Seller or the applicable SNF Subsidiary (as the case may be) in the performance of any of its material obligations under the
Material Contracts related to Seller’s respective Facility that remains uncured as of the Effective Date. To Seller’s knowledge, except as set forth on Schedule “9.2(g),” Seller (and, as the case may be, the applicable SNF
Subsidiary) has performed in all material respects all of its obligations under each Material Contract to which it is a party and, to Seller’s knowledge, no fact or circumstance has occurred, which by itself or with the passage of time or the
giving of notice or both would constitute a default by Seller (or, as the case may be, the applicable SNF Subsidiary) under any such Material Contract. Further, to Seller’s knowledge, as of the Effective Date, except as set forth on Schedule
“9.2(g),” all other parties to such Material Contracts have performed all of their obligations thereunder in all material respects and are not in default thereunder. 

(h) Except as set forth on Schedule “9.2(h)”, as of the Effective Date, Seller has not received any written
notice from any governmental authority nor does Seller possess any actual knowledge that all or any portion of its respective Facility is or was at any time within the one-year period immediately prior to the Effective Date in material violation of
any of the Legal Requirements, which material violation has not been cured. 
 (i) Seller is not and is not acting, directly
or indirectly, for, or on behalf of, any person or Governmental Entity named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
or Support Terrorism) or named by the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked Person or Governmental Entity pursuant to any Legal Requirement that is
enforced or administered by the Office of Foreign Assets Control, and is not engaging in the transactions contemplated by this Agreement, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated by this
Agreement, directly or indirectly, on behalf of, any such person or Governmental Entity. 
 (j) Attached hereto as
Schedule “9.2(j)” is a true and complete, in all material respects, list of all material Healthcare Permits. To the knowledge of Seller, all of the 

  
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Permits necessary for the operation of Seller’s respective Facility as it is currently being operated are valid, in good standing and in full force and effect and, to Seller’s
knowledge, none of Seller, the applicable SNF Subsidiary, as the case may be, or the Facility’s existing property manager have received written notice of any default or violation of any Permit which if unremedied would have a material adverse
effect on the operation, leasing, or condition of its Facility. To the knowledge of Seller, no governmental authority is considering suspending or revoking any Permit. 

(k) Attached hereto as Schedule “9.2(k)” is a true and complete, in all material respects, list of all Leases
as of the Effective Date. Each Lease in place at Seller’s respective Facility is in full force and effect as of the Effective Date in accordance with the terms thereof. To the knowledge of Seller, as of the Effective Date, neither Seller nor
any Affiliate of Seller has given or received any notice claiming the existence of any default under any Lease in place at Seller’s respective Facility, which default remains uncured. 

(l) Seller has delivered to Purchaser copies of all final environmental reports or studies prepared for Seller by third party
consultants in Seller’s possession or control relating to its respective Real Property, which reports are listed on Schedule “9.2(l)” attached hereto. To Seller’s actual knowledge and except for any matters which are
disclosed in the reports listed on Schedule “9.2(l)” , Seller is not aware that its respective Real Property is not in compliance with any Environmental Requirement. Seller has not received any written notice of any pending
action or proceeding arising out of the environmental condition of its respective Real Property, Hazardous Materials located on its respective Real Property, or any alleged violation of Environmental Requirements, which either (i) has not been
remediated or otherwise addressed in all material respects or (ii) would reasonably be expected to be material to the operation of the Facility. 

(m) The Financial Statements for each Property are the operating statements used in each Seller’s ordinary course of
business and, to each of Seller’s knowledge, are in accordance with the books and records of each Seller and, to each of Seller’s knowledge, do not contain any material inaccuracies. 

(n) To Seller’s knowledge, Schedule “9.2(n)” sets forth a true and correct, in all material respects,
“rent roll” for Seller’s respective Facility (the “Rent Roll”) as of the date identified on each such Rent Roll. True and correct, in all material respects, copies of the form(s) of Resident Agreements used by Seller
in the ordinary course of business has/have been made available to Purchaser as part of the Due Diligence Materials. 
 (o)
There are no surviving representations and warranties under the contract with the General Contractor to develop the Properties. 

(p) All amounts owing under the Mansfield IL Loan are paid current. As of the Effective Date, no event of default has occurred
under the Mansfield IL Loan and to Seller’s knowledge, there exists no event which, with the passage of time, would result in any default or event of default under the Mansfield IL Loan. 

  
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 9.3 Seller’s Knowledge. Wherever the phrase “to Seller’s actual
knowledge” or any similar phrase stating or implying a limitation on the basis of knowledge appears in this Agreement, unless specifically otherwise qualified or except as otherwise provided herein, such phrase shall mean (i) with respect
to the Property located in Mansfield, Texas and known as “Watercrest at Mansfield”, only the present actual knowledge of Richard E. Simmons, (ii) with respect to the Property located in Plainfield, Illinois and known as “The Park
at Plainfield”, only the present actual knowledge of Craig W. Spaulding and Patrick McGonigle, and (iii) with respect to the remaining Properties, only the present actual knowledge of Craig W. Spaulding and Richard E. Simmons, each after
inquiry of the Executive Director for each Facility but otherwise without any other duty of inquiry, any imputation of the knowledge of another, or independent investigation of the relevant matter by any individual(s), and without any personal
liability. Wherever the phrase “in Seller’s possession”, “in the possession of Seller” or similar phrase appears in this Agreement, such phrase shall be deemed to mean only to the extent the material or other item referred
to by such phrase is located at a Property or in Seller’s offices in Dallas, Texas. 
 9.4 Failure of Condition But No Seller
Breach. Notwithstanding any provision of this Agreement to the contrary (including Section 11.1 below), should any of the representations and warranties of any Seller become false or inaccurate prior to the Closing Date or if any Seller
discovers that any representations and warranties are false or inaccurate and informs Purchaser in writing prior to the Closing Date, then Purchaser’s sole recourse shall be to either (i) to terminate this Agreement and cancel the Escrow,
in which case the Deposit shall be returned to Purchaser and neither Sellers nor Purchaser will have any further liability or obligation under this Agreement (except for those obligations which survive in accordance with their terms), or
(ii) proceed with the closing, without reservation, in which case Purchaser shall be deemed to have waived all Claims against such Seller(s) with respect to such false or inaccurate representation and warranty. Notwithstanding the foregoing or
any other provision of this Agreement to the contrary, in the event of any right by Purchaser to terminate this Agreement (including without limitation, pursuant to Sections 10.3 and 11.2 below), Sellers shall first have the right, at their sole
option by written Notice to Purchaser within two (2) business days of the date of Sellers’ receipt of such Notice of termination by Purchaser, to elect to cure any failure of a covenant, condition or inaccurate representation or warranty,
by the payment of money or otherwise (but, in all events, in a manner reasonably acceptable to Purchaser), in which case, (a) the Closing Date will be extended at Sellers’ option for a period of time not to exceed ten (10) days for
Sellers to effectuate such cure, and (b) Purchaser and Sellers shall each act reasonably and in good faith to agree on the sufficiency of such cure. If Sellers are unable to cure any such failure, inaccuracy, misrepresentation, failed covenant
or obligation or other condition, then Purchaser’s sole recourse shall be to either (i) to terminate this Agreement and cancel the Escrow, in which case the Deposit shall be returned to Purchaser and neither Sellers nor Purchaser will have
any further liability or obligation under this Agreement (except for those obligations which survive in accordance with their terms), or (ii) proceed with the closing, without reservation, in which case Purchaser shall be deemed to have waived
all Claims against such Seller(s) with respect to such false or inaccurate representation and warranty. 
 9.5 Survival Period.
Subject to Section 11.5 below, the representations and warranties of each Seller and Purchaser set forth in this Agreement shall survive until the Survival Date (as hereinafter defined), at which time such representations and warranties shall
terminate. 

  
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 X.  

CONDITIONS PRECEDENT TO CLOSING 

10.1 Conditions to Sellers’ Obligations. The obligation of Sellers to close the transaction contemplated hereunder shall be
subject to the satisfaction or Notice of its waiver (delivered to Purchaser and Escrow Agent), in whole or in part, by Sellers of each of the following conditions precedent: 

(a) Except by reason of a default by Sellers, Escrow Agent is in a position to and will deliver to Sellers the instruments and
funds accruing to Sellers pursuant to the provisions of this Agreement and the Escrow Agreement; 
 (b) There is no existing
uncured material breach of any of the covenants, representations, warranties or obligations of Purchaser set forth in this Agreement that has not been waived by Sellers; 

(c) Purchaser shall have obtained confirmation (as determined in accordance with customary practices in Texas or Illinois, as
applicable) from the Texas Department of Aging and Disability Services and the Illinois Department of Public Health, as applicable, that Purchaser may consummate the transactions contemplated by this Agreement; and 

(d) As to the Mansfield IL Property, the Mansfield IL Lender shall have executed and delivered the Assumption Documents in the
form required by Section 2.12. 
 The foregoing conditions contained in this Section 10.1 are intended solely for the benefit of Sellers. Sellers
shall at all times have the right to waive any condition precedent, provided that such waiver is in writing and delivered to Purchaser and Escrow Agent. 

10.2 Conditions to Purchaser’s Obligations. The obligations of Purchaser to close the transaction contemplated hereunder shall be
subject to the satisfaction or Notice of its waiver (delivered to Sellers and Escrow Agent), in whole or in part, by Purchaser of each of the following conditions precedent, and Purchaser shall have no right to terminate this Agreement or delay the
Closing for any other reason: 
 (a) Except by reason of a default by Purchaser, Escrow Agent is in a position to and will
deliver to Purchaser the instruments and funds, if any, accruing to Purchaser pursuant to the provisions of this Agreement; 

(b) There is no existing uncured material breach of any of the covenants, representations, warranties or obligations of any
Seller set forth in this Agreement that has not been waived by Purchaser, and each Seller’s representations and warranties contained in or made pursuant to this Agreement shall be true and correct in all material respects as if made again on
the Closing Date, but subject to Sellers’ right to cure any of the same pursuant to Section 9.4 above; 

  
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 (c) Purchaser shall have obtained confirmation (as determined in accordance with
customary practices in Texas or Illinois, as applicable) from the Texas Department of Aging and Disability Services and the Illinois Department of Public Health, as applicable, that Purchaser may consummate the transactions contemplated by this
Agreement; and 
 (d) As to the Mansfield IL Property, the Mansfield IL Lender shall have executed and delivered the
Assumption Documents in the form required by Section 2.12. 
 The foregoing conditions contained in this Section 10.2 are intended solely for the
benefit of Purchaser. Purchaser shall at all times have the right to waive any condition precedent, provided that such waiver is in writing and delivered to Sellers and Escrow Agent. 

10.3 Failure of Conditions to Closing. Escrow Agent shall be responsible for confirming, on or before the Closing Date, that the
conditions to Closing set forth in Sections 10.1 and 10.2 hereof, and as set forth elsewhere in this Agreement, have been satisfied. Purchaser and Sellers hereby agree to deliver their Notices to Escrow Agent, on or before the Closing Date, of the
satisfaction or waiver of all conditions to Closing hereunder, and, in the event that both Purchaser and Sellers specifically notify and instruct Escrow Agent, in writing, to proceed to Closing hereunder, all such conditions to Closing hereunder
that are not otherwise satisfied shall be deemed to have been waived by both Purchaser and Sellers. Escrow Agent shall not proceed to Closing hereunder unless both Purchaser and Sellers specifically notify and instruct Escrow Agent to do so. Sellers
and Purchaser shall use commercially reasonable efforts to satisfy the closing conditions set forth herein. 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. Except as otherwise expressly provided herein (including pursuant to Section 2.12,
which shall govern as to matters in connection with the Mansfield IL Property), in the event any of the conditions to closing set forth in this Agreement are not satisfied (other than as the result of a default by Purchaser or Sellers under the
terms of this Agreement) or waived by the applicable party by the Closing Date, then either Sellers or Purchaser (as applicable) shall have the right at its option to declare this Agreement terminated and null and void, in which case the Deposit
shall be immediately returned to Purchaser (and such right shall survive any termination of this Agreement) and each of the parties shall be relieved from further liability to the other. 

10.4 Purchase of all Facilities. Purchaser hereby acknowledges and agrees that this Agreement is for the purchase and sale of all of
the Facilities and that Purchaser shall not under any circumstances purchase less than all of the Facilities, except as expressly permitted, at Purchaser’s option, in accordance with Section 14.12 herein. 

  
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 XI. 

REMEDIES FOR PRE-CLOSING AND POST-CLOSING DEFAULTS ; LIQUIDATED DAMAGES 

11.1 Default by Purchaser Prior to Closing. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTION HEREIN CONTEMPLATED DOES
NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY MATERIAL DEFAULT OF PURCHASER, PURCHASER AND SELLERS AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH SELLERS MAY SUFFER. THEREFORE, PURCHASER AND SELLERS DO
HEREBY AGREE THAT, IN THE EVENT OF SUCH DEFAULT, A REASONABLE ESTIMATE OF THE TOTAL DAMAGES THAT SELLERS WOULD SUFFER IN THE EVENT THAT PURCHASER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS AND SHALL BE, AS SELLERS’ SOLE AND
EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY), AN AMOUNT EQUAL TO THE DEPOSIT. SAID AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR THE FAILURE OF PURCHASER TO CLOSE AND CONSUMMATE THE TRANSACTIONS HEREIN CONTEMPLATED. ALL OTHER CLAIMS
TO DAMAGES OR OTHER REMEDIES IN CONNECTION WITH PURCHASER’S FAILURE TO CLOSE AND CONSUMMATE THE TRANSACTIONS CONTEMPLATED HEREIN ARE EXPRESSLY WAIVED BY SELLERS. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE
OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLERS. UPON SUCH DEFAULT BY PURCHASER THAT REMAINS UNCURED AFTER THE EXPIRATION OF ANY APPLICABLE CURE PERIOD, THIS AGREEMENT SHALL BE TERMINATED AND NEITHER PARTY SHALL HAVE ANY
FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT ANY INDEMNIFICATION OBLIGATIONS, THE RIGHTS OF SELLERS AND PURCHASER THAT SHALL SURVIVE AS PROVIDED HEREIN, AND FOR THE RIGHT OF SELLERS TO COLLECT SUCH LIQUIDATED DAMAGES FROM
PURCHASER AND ESCROW AGENT. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 11.1, NOTHING HEREIN SHALL LIMIT SELLERS’ RECOVERY IN CONNECTION WITH ANY EXPRESS INDEMNITY BY PURCHASER PROVIDED IN THIS AGREEMENT. 

 

									
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		 	SELLERS’ INITIALS	 		  	PURCHASER’S INITIALS	  	

 11.2 Default by Sellers Prior to Closing. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE
TRANSACTION HEREIN CONTEMPLATED DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY DEFAULT OF SELLERS, PURCHASER AND SELLERS AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH PURCHASER MAY SUFFER. THEREFORE,
PURCHASER AND SELLERS DO HEREBY AGREE THAT, IN THE EVENT OF SUCH DEFAULT, PURCHASER MAY, AS ITS SOLE RECOURSE AND REMEDY (AT LAW OR IN EQUITY), EITHER: (a) PURSUE AN ACTION AGAINST SELLERS FOR SPECIFIC PERFORMANCE, PROVIDED THAT SUCH ACTION IS

  
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INITIATED WITHIN NINETY (90) DAYS FOLLOWING THE CLOSING DATE SET FORTH HEREIN; OR (b) TERMINATE THIS AGREEMENT AND RECEIVE THE RETURN OF THE DEPOSIT PLUS DAMAGES FROM SELLER IN AN
AMOUNT EQUAL TO PURCHASER’S THIRD-PARTY EXPENSES ACTUALLY INCURRED IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREIN, INCLUDING WITHOUT LIMITATION THE NEGOTIATION OF THIS AGREEMENT, WHICH DAMAGES (NOT INCLUDING THE RETURN OF THE DEPOSIT)
SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS ($500,000.00). ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES IN CONNECTION WITH SELLERS’ FAILURE TO CLOSE AND CONSUMMATE THE TRANSACTIONS CONTEMPLATED HEREIN (OTHER THAN AS SPECIFIED IN
(a) AND (b) HEREOF) ARE EXPRESSLY WAIVED BY PURCHASER. UPON DEFAULT BY SELLERS, IF THIS AGREEMENT IS TERMINATED BY PURCHASER, NEITHER PARTY SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT ANY
INDEMNIFICATION OBLIGATIONS, AND THE RIGHTS OF SELLERS AND PURCHASER THAT SHALL SURVIVE AS PROVIDED HEREIN. 
  

									
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		 	SELLERS’ INITIALS	 		  	PURCHASER’S INITIALS	  	

 11.3 Limitations of Purchaser’s Post-Closing Claims. 

(a) Notwithstanding any provision to the contrary herein or in any document or instrument (including any deeds, bill of sale or
assignments) executed by any Seller and delivered to Purchaser at or in connection with the Closing, (collectively, “Closing Documents”), no Seller shall have (and each Seller is exculpated and released from any) liability
whatsoever with respect to any Claims under, and Purchaser shall be forever barred from making or bringing any Claims with respect to, any of the representations and warranties, covenants and indemnities contained in this Agreement or in any Closing
Document, except to the extent (and only to the extent) that the aggregate amount of all Claims for breach of any Seller’s representations and warranties, covenants and indemnities exceed One Hundred Thousand and NO/100 Dollars ($100,000.00)
(the “Threshold Amount”) (but if any such Claims are valid and are finally determined (or settled) to be in excess of the Threshold Amount, then Seller’s liability shall extend to the “first dollar” of
Purchaser’s Claims); provided, however, notwithstanding any provision to the contrary herein or in any Closing Document, the total liability of a Seller for any or all Claims with respect to its respective Property may not exceed the amount
listed opposite such Seller’s name in Column 3 of Exhibit “L” (each such amount, the “Cap Amount”). The Cap Amount shall be placed in escrow with the Post-Closing Escrow Agent at Closing out of funds that would
otherwise be payable to Sellers (the “Post-Closing Liability Escrow”), pursuant to the terms and conditions of Post-Closing Escrow Agreement, in form and content as attached hereto as Exhibit “M” (the
“Post-Closing Escrow Agreement”). As provided in more detail in the Post-Closing Escrow Agreement, on the date which is six (6) months after the Closing Date, the Post-Closing Escrow Agent shall refund to Sellers fifty percent
(50%) of the Cap Amount unless there exists a Pending Claim, as hereinafter provided, and on the Survival Date, the Post-Closing Escrow Agent shall refund to Sellers any remaining balance of the Post-Closing

  
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Liability Escrow (including any interest earned thereon), in each case unless there is a Pending Claim, in which event the Post-Closing Liability Escrow shall remain in place until the Pending
Claim is definitively resolved by agreement of the parties or final court order but all funds in the Post-Closing Liability Escrow, other than those funds that are to be retained by the Post-Closing Escrow Agent in accordance with the terms of the
Escrow Agreement, shall be released to Sellers as of the Survival Date. If any amount remains in the Post-Closing Liability Escrow following the definitive resolution of the Pending Claim by agreement of the parties or final court order, such amount
should be released to Sellers. For purposes of clarification, the terms of this Section 11.3 shall not apply to any liability of Sellers to any third parties unaffiliated with Purchaser regarding the Retained Liabilities. 

(b) Purchaser shall not make any Claim with respect to a Property or deliver any notice of a Claim with respect to a Property
(a “Claim Notice”) unless in good faith, it believes the Claim or all of the Claims with respect to a Property in the aggregate would exceed the applicable Threshold Amount. 

11.4 Survival of Purchaser’s Claims. Except as otherwise specifically set forth in this Agreement, the representations and
warranties, covenants and indemnities of each Seller contained herein or in any Closing Document shall survive only until the date that is nine (9) months after the Closing Date (the “Survival Date”). Any Claim that Purchaser
may have at any time against any Seller for breach of any such representation, warranty, covenant or indemnity, whether known or unknown, with respect to which a Claim Notice has not been delivered to such Seller on or prior to the Survival Date,
shall not be valid or effective and the party against whom such Claim is asserted shall have no liability with respect thereto. Any Claim that Purchaser may have at any time against a Seller for a breach of any such representation or warranty, or
its covenants and indemnities whether known or unknown, with respect to which a Claim Notice has been delivered to such Seller on or prior to the Survival Date (a “Pending Claim”) may be the subject of subsequent litigation brought
by Purchaser against such Seller. For avoidance of doubt, on the Survival Date, each Seller shall be fully discharged and released (without the need for separate releases or other documentation) from any liability or obligation to Purchaser and/or
its successors and assigns with respect to any Claims or other matters relating to this Agreement or any Closing Document, except solely for those matters that are then the subject of a Claim Notice delivered by Purchaser to such Seller on or prior
to the Survival Date that is still pending on the Survival Date. 
 11.5 Limitations on Liability. To the maximum extent permitted by
applicable law, no shareholder, director, officer or employee of any party to this Agreement shall have any personal liability with respect to the liabilities or obligations of such party under this Agreement or any document executed by such party
pursuant to this Agreement. 
 11.6 Survival. Article XI shall survive the Closing. 

  
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 XII. 

FINANCIAL ADVISOR 
 Sellers represent and
warrant to Purchaser, and Purchaser represents and warrants to Sellers, that except for KeyBanc Capital Markets Inc. (“Financial Advisor”), no financial advisor, broker or commission agent has been engaged by it or their affiliates,
respectively, in connection with the transaction contemplated by this Agreement or to its knowledge is in any way connected with this transaction. Purchaser shall be responsible for the payment of any commission, finder’s fee or other sum
initiated by any financial advisor, broker, commission agent or other person engaged or retained by Purchaser in connection with the transaction contemplated by this Agreement. Sellers shall be responsible for the payment of any compensation,
commission, finder’s fee or other sum initiated by any financial advisor, broker, commission agent or other person engaged or retained by Sellers in connection with the transaction contemplated by this Agreement, including without limitation,
Financial Advisor. Sellers and Purchaser (except with respect to the compensation which shall be paid by Sellers to Financial Advisor) each agree to indemnify, protect, defend and hold the other harmless from and against any claims, actions, suits
or demands for payment of any compensation, commission, finder’s fee or other sum initiated by any financial advisor, broker, commission agent or other person which such party or its representatives has engaged or retained or with which it has
had discussions concerning or which shall be based upon any statement or agreement alleged to have been made by such party, in connection with the transaction contemplated by this Agreement or the sale of the Properties by Sellers. The provisions of
this Article XII shall survive the Closing. 
 XIII. 

NOTICES 
 Except as otherwise expressly
provided in this Agreement, all notices, requests, demands and other communications hereunder (“Notice”) shall be in writing and shall be deemed delivered by (i) hand delivery upon receipt, (ii) registered mail or
certified mail, return receipt requested, postage prepaid, upon delivery to the address indicated in the Notice, (iii) by confirmed telecopy or facsimile transmission when sent, and (iv) overnight courier (next business day delivery) on
the next business day at 12:00 noon, whichever shall occur first, as follows: 
 If to Sellers: 

c/o South Bay Partners, Ltd. 

5307 E Mockingbird Lane, Ste.1010 

Dallas, TX 75206 
 Attn: Craig W.
Spaulding 

			
	Telephone:	 	(214) 370-2600
	Facsimile:	 	(214) 370-2699

  
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 and 

c/o Integrated Real Estate Group 

3110 W. Southlake Blvd., Suite 120 

Southlake, Texas 76092 
 Attn:
Richard E. Simmons 

			
	Telephone:	 	(817) 742-1851 x 12
	Facsimile:	 	(817) 741-6959

 With a copy to: 

Arent Fox LLP 
 1717 K Street,
N.W. 
 Washington, D.C. 20036-5339 

Attention: Kenneth S. Jacob, Esq. 

Telephone: (202) 775-5750 

Facsimile: (202) 857-6395 

If to Purchaser: 
 CHP
Partners, LP 
 c/o CNL Healthcare Properties, Inc. 

450 South Orange Avenue, Suite 1200 

Orlando, FL 32801-3336 

Attention: Tracey B. Bracco, Esq. 

			
	Telephone:	 	(407) 540-7500
	Facsimile:	 	(407) 540-2544

 Email: tracey.bracco@cnl.com 

With a copy to: 
 Lowndes,
Drosdick, Doster, Kantor & Reed, P.A. 
 215 North Eola Drive 

Orlando, Florida 32801 

Attention: William T. Dymond, Jr., Esq. 

			
	Telephone:	 	(407) 843-4600
	Facsimile:	 	(407) 843-4444

 Email: william.dymond@lowndes-law.com 

Any correctly addressed Notice that is refused, unclaimed or undelivered because of an act or omission of the party to be notified shall be considered to be
effective as of the first day that the Notice was refused, unclaimed or considered undeliverable by the postal authorities, messenger or overnight delivery service. The parties hereto shall have the right from time to time, and at any time, to
change their respective addresses and each shall have the right to specify as its address any other address within the United States of America, by giving to the other party at least five (5) days prior Notice thereof, in the manner prescribed
herein; provided, however, that to be effective, any such change of address must be actually received (as evidenced by a return 

  
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receipt). Telephone numbers and email addresses, if listed, are listed for convenience purposes only and not for the purposes of giving Notice pursuant to this Agreement. Any Notice that is
required or permitted to be given by either party to the other under this Agreement may be given by such party or its legal counsel, who are hereby authorized to do so on the party’s behalf. 

XIV. 
 MISCELLANEOUS 

14.1 Governing Law. This Agreement (but not the Closing Documents, the forms of which are attached hereto as Exhibits) shall be
governed by and construed in accordance with the laws of the State of Texas. If any legal action is necessary to enforce the terms and conditions of this Agreement, the parties hereby agree that the courts in the State of Texas shall be the sole
jurisdiction and venue for the bringing of the action. 
 14.2 Exhibits and Schedules a Part of This Agreement. The Exhibits and
Schedules attached hereto are incorporated in this Agreement by reference and are hereby made a part hereof. 
 14.3 Executed
Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together
shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement shall
become effective upon the due execution and delivery of this Agreement to the parties hereto. 
 14.4 Assignment. Purchaser may not
assign, convey and otherwise transfer all or any part of its interest or rights herein without the prior written consent of Sellers, which consent may be withheld in Sellers’ sole discretion. Notwithstanding the foregoing, however, Purchaser
may (without Sellers’ consent but with advance written notice to Sellers), by not later than one (1) business day prior to Closing, assign and transfer in whole or in part all of its rights and obligations under this Agreement to one
(1) or more wholly owned subsidiary(ies) thereof, or to a one hundred percent (100%) owned affiliate(s) thereof, or to any entity controlled (directly or indirectly, through voting or equity ownership) by Purchaser in the form of the
Assignment of Purchase Agreement attached hereto as Exhibit “K”; provided, however, that Purchaser shall not be released of its obligations under this Agreement as a result of any such assignment. No transfer or assignment in
violation of the provisions hereof shall be valid or enforceable. 
 14.5 IRS - Form 1099-S. For purposes of complying with
Section 6045 of the Internal Revenue Code of 1986, as amended, Escrow Agent shall be deemed the “person responsible for closing the transaction” and shall be responsible for obtaining the information necessary to file with the
Internal Revenue Service Form 1099-S, “Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions.” 

  
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 14.6 Successors and Assigns. Subject to the provisions of Section 14.4 hereof, this
Agreement shall be binding upon and inure to the benefit of the parties’ respective successors and permitted assigns. 
 14.7 Time
is of the Essence. Time is of the essence of this Agreement. 
 14.8 Entire Agreement. This Agreement, and Exhibits and Schedules
and other documents and instruments attached to or referenced herein, contain the entire understanding and agreement between the parties hereto with respect to the purchase and sale of the Property, and all prior and contemporaneous understandings,
letters of intent, agreements and representations, whether oral or written, are entirely superseded. Except for any of the following expressly contained in this Agreement, Sellers and Purchaser each expressly disclaim any reliance on any oral or
written representations, warranties, comments, statements or assurances made by Sellers, Purchaser, and any of their respective affiliates, and their respective agents, employees, representatives, attorneys, financial advisors or brokers, as an
inducement or otherwise, to Purchaser’s and Sellers’ respective execution hereof. No amendment of this Agreement shall be binding unless in writing and executed by the parties hereto. 

14.9 Further Assurances. Whenever and so often as requested by a party, the other party will promptly execute and deliver or cause to
be executed and delivered all such other and further instruments, documents or assurances, and promptly do or cause to be done all such other and further things as may be necessary and reasonably required in order to further and more fully vest in
such requesting party all rights, interests, powers, benefits privileges and advantages conferred or intended to be conferred upon it by this Agreement, or to effectuate the termination of this Agreement and cancellation of the Escrow (if otherwise
permitted hereunder). The terms of this Section shall survive Closing and/or termination of this Agreement. 
 14.10 Waiver. Failure
or delay by either party to insist on the strict performance of any covenant, term, provision or condition hereunder, or to exercise any option herein contained, or to pursue any claim or right arising herefrom, shall not constitute or be construed
as a waiver of such covenant, term, provision, condition, option, claim or right (except that if a party proceeds to Closing, notwithstanding the failure of a condition to its obligation to close, then such condition shall be deemed waived by virtue
of the Closing). Any waiver by either party shall be effective only if in a writing delivered to the other party hereto and setting forth, with specificity, the covenant, term, provision or condition so waived. Any such waiver shall not constitute
or be construed as a continuing waiver of any subsequent default. 
 14.11 Headings. The headings of this Agreement are for purposes
of convenience only and shall not limit or define the meaning of the provisions of this Agreement. 
 14.12 Risk of Loss. With
respect to each Property, the risk of loss shall be as follows: 
 (a) Until the Closing Date, Seller shall bear the risk of
loss should there be damage to any of the Property by fire or other casualty (collectively “Casualty”). If, prior to the Closing Date, any of the Properties shall be damaged by any Casualty, Seller shall promptly deliver to
Purchaser a Notice (“Casualty Notice”) of such event. Upon Purchaser’s receipt of a Casualty Notice, Seller and Purchaser shall meet promptly to 

  
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estimate the cost to repair and restore the Improvements to good condition and to replace the damaged Personal Property (“Casualty Renovation Cost”). If the parties are unable to
agree on the cost of restoration, the matter will be submitted to an engineer designated by Seller and an engineer designated by Purchaser, each licensed to practice in the state in which the Land is located, and the engineers shall resolve the
dispute. Each party hereto shall bear the costs and expenses of its own engineer. 
 (b) If the Casualty Renovation Cost for
any single Property exceeds Five Hundred Thousand and NO/100 Dollars ($500,000.00), then Purchaser may, at its option, elect to terminate this Agreement with respect to the impacted Property by Notice to Sellers within ten (10) business days
after the date that the Casualty Renovation Cost is determined (and if necessary the Closing Date will be extended to accommodate such ten (10) business day period). If the Casualty Renovation Costs for any one or more of the Properties
individually or in the aggregate exceed Two Million and NO/100 Dollars ($2,000,000.00), then, Purchaser may, at its option, elect to terminate this entire Agreement by Notice to Sellers within ten (10) business days after the date that the
Casualty Renovation Cost is determined. In the event of a termination hereof with respect solely to the impacted Property, the Purchase Price shall be reduced by the Allocated Purchase Price of the impacted Property. If Purchaser does not elect to
terminate this Agreement with respect to the impacted Property (or, as applicable, all Properties), then the Closing shall take place as provided herein without reduction of the Purchase Price and the applicable Seller shall assign the insurance
proceeds to Purchaser in the event the Casualty is insured against and shall pay to Purchaser the amount of any deductible not already otherwise paid by such Seller under applicable insurance policies, or have the Allocated Purchase Price for the
Property that was damaged by the Casualty reduced by the Casualty Renovation Cost in the event the Casualty is not fully insured against (subject to further adjustment for actual restoration costs). 

(c) If the Casualty Renovation Cost is Five Hundred Thousand and NO/100 Dollars ($500,000.00) or less, then, in any such event,
neither party hereto shall have any right to terminate this Agreement, the Closing shall take place as provided herein without reduction of the Purchase Price, and the applicable Seller shall assign the insurance proceeds to Purchaser in the event
the Casualty is insured against and shall pay to Purchaser the amount of any deductible, under applicable insurance policies, or have the Allocated Purchase Price for the Property that was damaged by the Casualty reduced by the Casualty Renovation
Cost in the event the Casualty is not fully insured against (subject to further adjustment for actual restoration costs). 

(d) If, prior to the Closing Date, a Seller receives notice that a material portion of a Property (or access or other material
rights in connection therewith) as would materially adversely affect the operation of the Facility or uses of the Property is, or has been threatened in writing by a governmental authority of competent jurisdiction, to be taken by condemnation or
eminent domain, Seller shall promptly notify Purchaser, and at the election of Purchaser this Agreement shall, upon the giving of Notice of such event or of the condemning authorities’ intention so to take the Property, either (i) to the
extent that the taking or condemnation is reasonably anticipated to materially adversely affect the operation of a Facility or uses of the Property, Purchaser may terminate this 

  
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Agreement with respect only to the impacted Property, but the Closing shall proceed with respect to the remaining Properties (with the Purchase Price reduced by the Allocated Purchase Price of
that Property) or, (ii) to the extent that the taking or condemnation would result in a condemnation aware reasonably estimated to exceed Two Million and NO/100 Dollars ($2,000,000.00), terminate this Agreement in its entirety. If Purchaser
does not elect to terminate this Agreement with respect to the impacted Property (or, as applicable, all Properties), prior to the Closing Date, on the Closing Date all of the proceeds of any award or payment made or to be made by reason of such
taking shall be assigned by the applicable Seller to Purchaser, and any money theretofore received by the applicable Seller in connection with such taking shall be paid over to Purchaser, whereupon Purchaser shall pay the Purchase Price without
abatement by reason of such taking. No Seller shall settle, agree to, or accept any award or payment in connection with a taking of less than all of the Property without obtaining Purchaser’s prior written consent in each case, which consent
shall not be unreasonably withheld or delayed. 
 (e) In the event of any termination of this Agreement in its entirety by
Purchaser pursuant to this Section 14.12, the Deposit shall be returned to Purchaser and neither party shall have any further liability with respect to this Agreement, except to the extent of such provisions which expressly survive such
transaction. 
 14.13 Construction of Agreement. The parties hereto have negotiated this Agreement at length, and have had the
opportunity to consult with, and be represented by, their own competent counsel. This Agreement is, therefore, deemed to have been jointly prepared. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase or
provision of this Agreement, no uncertainty or ambiguity shall be construed or resolved against any party under any rule of construction, including the party primarily responsible for the drafting and preparation of this Agreement. The words
“herein,” “hereof,” “hereunder” and words of similar reference shall mean this Agreement. The words “this Agreement” include the exhibits, schedules addenda and any future written modifications, unless
otherwise indicated by the context. All words in this Agreement shall be deemed to include any number or gender as the context or sense of the Agreement requires. The words “will,” “shall” and “must” in this Agreement
indicate a mandatory obligation. The use of the words “include,” “includes” and “including” followed by one or more examples is intended to be illustrative and is not a limitation on the scope of the description or term
for which the examples are provided. All dollar amounts set forth in this Agreement are stated in United States Dollars, unless otherwise specified. The words “day” and “days” refer to calendar days unless otherwise stated. The
words “business day” refers to a day other than a Saturday, Sunday or Legal Holiday (hereinafter defined). The words “month” and “months” refer to calendar months unless otherwise stated. The words “year” and
“years” refer to calendar years unless otherwise stated. If any date herein set forth for the performance of any obligations by Seller or Purchaser or for the delivery of any instrument or notice as herein provided should fall on a
Saturday, Sunday or Legal Holiday, the compliance with such obligations or delivery will be deemed acceptable on the next business day following such Saturday, Sunday or Legal Holiday. As used herein, the term “Legal Holiday” will mean any
local or federal holiday on which post offices are closed in the State of Texas. 
 14.14 No Public Disclosure. The parties agree
that no party shall, with respect to this Agreement and the transactions contemplated hereby, contact or conduct negotiations with 

  
 - 52 - 

 
public officials, make any public pronouncements, issue press releases or otherwise furnish information regarding this Agreement or the transactions contemplated hereby to any third party without
the consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed, except as may be required by law or securities regulations or as may be reasonably necessary, on a confidential basis, to inform any rating
agencies, potential sources of financing, financial analysts, or to entities involved with a sale of a controlling interest in Seller, Purchaser or any of their Affiliates or to receive legal, accounting and/or tax advice; provided, however, that,
if such information is required to be disclosed by law, the party so disclosing the information will use reasonable efforts to give notice to the other parties as soon as such party learns that it must make such disclosure. Notwithstanding the
foregoing, if such information is required to be disclosed to any governmental authority to facilitate the issuance of Permits or obtain zoning information, the disclosing party may disclose such information without the consent of the other parties
and shall promptly give written notice to the other parties of such information which was disclosed. This Section 14.14 shall be subject to the terms of the confidentiality provisions of Section 14.16. 

14.15 Covenants, Representations and Warranties. By proceeding with the closing of the sale transaction, Sellers and Purchaser shall be
deemed to have waived, and so covenant to waive, any claims of defaults or breaches by the other party existing on or as of the Closing Date whether under this Agreement or any other document or instrument executed by the other party in connection
with this transaction, of which the waiving party was made aware by Notice from the defaulting or breaching party (and, if applicable, which is described on Sellers certification of representations and warranties to be delivered at Closing) prior to
the Closing Date for which the other party shall have no liability. 
 14.16 Confidentiality. Other than as required or permitted by
the terms of this Agreement or required by any Legal Requirements (including without limitation, any disclosures required or advisable by Sellers or Purchaser under any applicable securities laws or practices), no party hereto shall release or cause
or permit to be released any press notices or releases or publicity (oral or written) or advertising promotion relating to, or otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the terms and
conditions of the purchase and sale transaction for the Properties, nor shall Purchaser or its agents or representatives disclose, in any manner whatsoever, (a) the information provided to Purchaser by any Seller or its representatives, or
(b) any analyses, compilations, studies or other documents or records prepared by or on behalf of Purchaser, in connection with Purchaser’s investigation of the Properties, without first obtaining the written consent of Sellers
(collectively, “Proprietary Information”). Proprietary Information shall not include (i) publicly available information or (ii) information that becomes publicly available for reasons other than a breach of this section by
Purchaser. The foregoing shall not preclude Purchaser (i) from discussing the Proprietary Information with any person who is employed by Purchaser or who, on behalf of Purchaser, is actively and directly participating in the purchase and sale
of the Properties, including, without limitation, to Purchaser’s shareholders, partners, members, existing or prospective lenders, attorneys, accountants and other consultants and advisors, or (ii) from complying with all laws, rules,
regulations and court orders, including, without limitation, governmental regulatory, disclosure, tax and reporting requirements; provided, however, that if Purchaser is required by applicable law or legal process to disclose any Proprietary
Information, Purchaser agrees to use its commercially reasonable efforts to obtain assurance that, if possible, 

  
 - 53 - 

 
confidential treatment will be accorded to the Proprietary Information. Purchaser shall inform its respective representatives of the confidential nature of the Proprietary Information and shall
direct them to be bound by the terms of this Section. In addition to any other remedies available to Sellers, Sellers shall have the right to seek equitable relief, including, without limitation, injunctive relief or specific performance, against
Purchaser in order to enforce the provisions of this Section. The provisions of such confidentiality agreement shall survive any termination of this Agreement. 

14.17 No Third-Party Beneficiaries. Except as otherwise expressly provided herein, Sellers and Purchaser agree that there are no third
parties who are intended to benefit from or who are entitled to rely on any of the provisions of this Agreement. No third party shall be entitled to assert any claims or to enforce any rights whatsoever pursuant to this Agreement. Except as
otherwise expressly provided herein, the covenants and agreements provided in this Agreement are solely for the benefit of Sellers and Purchaser and their permitted successors and assigns respectively. 

14.18 Electronic Signatures. The execution of this Agreement and all Notices given hereunder and all amendments hereto, may be effected
by portable document format (“.pdf”) signatures, all of which shall be treated as originals; provided, however, that the party receiving a document with a .pdf signature may, by Notice to the other, require the prompt delivery of an
original signature to evidence and confirm the delivery of the .pdf signature. Purchaser and Sellers each intend to be bound by its respective .pdf transmitted 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 .pdf transmission. 
 14.19 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. 

14.20 Cumulative Remedies. No remedy conferred upon a party in this Agreement is intended to be exclusive of any other remedy herein or
by law provided or permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law, in equity or by statute (except as otherwise expressly herein provided). 

14.21 WAIVER OF JURY TRIAL. THE PARTIES HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT. 

  
 - 54 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Purchase and Sale Agreement to be
executed effective as of the Effective Date. 
  

					
	SELLERS:
	
	 MIDLAND CARE GROUP, LP,
 a Texas
limited partnership

		
	By:	 	Midland Care Group GP, LLC,
		 	a Texas limited liability company,
		 	its general partner
		
	By:	 	 /s/ Craig W. Spaulding

		 	Craig W. Spaulding
		 	Manager
	
	 BRYAN AL INVESTORS, LP,
 a Texas
limited partnership

		
	By:	 	Bryan AL Investors GP, LLC,
		 	a Texas limited liability company,
		 	its general partner
		
	By:	 	 /s/ Craig W. Spaulding

		 	Craig W. Spaulding
		 	Manager
	
	 BRYAN SENIOR INVESTORS, LP,
 a Texas
limited partnership

		
	By:	 	Bryan Senior Investors GP, LLC,
		 	a Texas limited liability company,
		 	its general partner
			
		 	By:	 	 /s/ Craig W. Spaulding

		 		 	Craig W. Spaulding
		 		 	Manager

 [Signatures continue on the next page] 

  
 S-1 

 
					
	MANSFIELD AL GROUP, LP,
	a Texas limited partnership
		
	By:	 	Mansfield AL Group GP, LLC,
		 	a Texas limited liability company,
		 	its general partner
			
		 	By:	 	 /s/ Craig W. Spaulding

		 		 	Craig W. Spaulding
		 		 	Manager
	
	 CEDAR PARK AL GROUP, LP,
 a Texas
limited partnership

		
	By:	 	Cedar Park AL Group GP, LLC
		 	a Texas limited liability company,
		 	its general partner
			
		 	By:	 	 /s/ Craig W. Spaulding

		 		 	Craig W. Spaulding
		 		 	Manager
	
	WATERVIEW AT MANSFIELD INVESTORS,
	L.P., a Texas limited partnership
		
	By:	 	Waterview at Mansfield GenPar, LLC,
		 	a Texas limited liability company,
		 	its general partner
			
		 	By:	 	 /s/ Richard E. Simmons

		 		 	Richard E. Simmons
		 		 	Manager
	
	 PLAINFIELD CARE GROUP, LLC,
 a
Delaware limited liability company

		
	By:	 	 /s/ Craig W. Spaulding

		 	Craig W. Spaulding
		 	Manager

 [Signatures continue on the next page] 

  
 S-2 

 
					
	SAN ANGELO CARE GROUP, LP,
	a Texas limited partnership
		
	By:	 	San Angelo Care Group GP, LLC,
		 	a Texas limited liability company,
		 	its general partner
			
		 	By:	 	 /s/ Craig W. Spaulding

		 		 	Craig W. Spaulding
		 		 	Manager

 [PURCHASER’S SIGNATURE FOLLOWS] 

  
 S-3 

 
							
	PURCHASER:
	
	CHP PARTNERS, LP, a Delaware limited partnership
		
	By:	 	CHP GP, LLC, a Delaware limited liability
		 	company, its general partner
			
		 	By:	 	CNL Healthcare Properties, Inc., a Maryland corporation, its sole member
				
		 		 	By:	 	 /s/ Tracey B. Bracco

		 		 	Name:	 	Tracey B. Bracco
		 		 	Title:	 	Vice President

  
 S-4 

 LIST OF EXHIBITS TO PURCHASE AGREEMENT 

 

			
	Exhibit “A-1”	  	Properties and Sellers
	Exhibit “A-2”	  	Legal Descriptions of Properties
	Exhibit “A-3”	  	Allocated Purchase Prices
	Exhibit “B”	  	Form of Escrow Agreement for Earnest Money Deposit
	Exhibit “C-1”	  	Form of Illinois Deed
	Exhibit “C-2”	  	Form of Texas Deed
	Exhibit “D”	  	Form of Bill of Sale
	Exhibit “E”	  	Form of Assignment and Assumption of Intangible Property
	Exhibit “F”	  	Form of Assignment and Assumption of Leases and Contracts
	Exhibit “G”	  	Form of Assignment and Assumption of Resident Agreements
	Exhibit “H”	  	Form of FIRPTA Certificate
	Exhibit “I”	  	Form of Owner’s Affidavit
	Exhibit “J”	  	Form of Notice to Residents
	Exhibit “K”	  	Form of Assignment of Purchase Contract to Applicable Property
	Exhibit “L”	  	Cap Amounts
	Exhibit “M”	  	Post-Closing Escrow Agreement
	Exhibit “N”	  	NOI Purchase Price Increase Calculation for Extended Closing Date Properties

 LIST OF SCHEDULES TO PURCHASE AGREEMENT 

 

			
	Schedule 1	  	Excluded Intellectual Property Rights
	Schedule 2	  	National Contracts
	Schedule “9.2(e)”	  	Litigation
	Schedule “9.2(g)”	  	Material Contracts
	Schedule “9.2(h)”	  	Notice of Material Violation of Legal Requirements
	Schedule “9.2(j)”	  	Material Healthcare Permits
	Schedule “9.2(k)”	  	Leases
	Schedule “9.2(l)”	  	Environmental Reports
	Schedule “9.2(n)”	  	Rent Roll

 EXHIBIT “A-1” 

PROPERTIES AND SELLERS 
  

					
	 	  	 Property
	  	 Owner/Seller

	1	  	 Legacy Ranch
 4800 Briarwood Avenue

Midland, TX 79707
 (ALZ)
	  	 Midland Care Group, LP,
 a Texas limited
partnership

			
	2	  	 Isle at Cedar Ridge
 2200 S. Lakeline
Boulevard
 Cedar Park, TX 78613
 (AL/SNF)*
	  	 Cedar Park AL Group, LP,
 a Texas limited
partnership

			
	3	  	 Isle at Watercrest – Bryan
 4091
Eastchester Drive
 Bryan, TX 77802
 (AL/SNF)*
	  	 Bryan AL Investors, LP,
 a Texas limited
partnership

			
	4	  	 Watercrest at Bryan
 3801 E Crest Drive

Bryan, TX 77802
 (IL)
	  	 Bryan Senior Investors, LP
 a Texas limited
partnership

			
	5	  	 Isle at Watercrest – Mansfield
 200 East
Debbie Lane
 Mansfield, TX 76063
 (AL/ALZ)
	  	 Mansfield AL Group, LP,
 a Texas limited
partnership

			
	6	  	 Watercrest at Mansfield
 250 East Debbie
Lane
 Mansfield, TX 76063
 (IL)
	  	 Waterview at Mansfield Investors, L.P.,
 a Texas
limited partnership

			
	7	  	 The Park at Plainfield
 12446 S. Van Dyke
Road
 Plainfield, IL 60585
 (AL/ALZ)
	  	 Plainfield Care Group, LLC,
 a Delaware limited
liability company

			
	8	  	 The Springs
 6102 Grand Court Road

San Angelo, TX 76901
 (ALZ)
	  	 San Angelo Care Group, LP,
 a Texas limited
partnership

  

	*	The SNF component of the Isle at Watercrest – Bryan and the Isle at Cedar Ridge participate in Medicare and Medicaid. 

 EXHIBIT “A-2” 

LEGAL DESCRIPTIONS OF PROPERTIES 

(as described in the applicable vesting deed) 

Legacy Ranch (Midland, TX) 

[Intentionally Omitted] 

EXHIBIT “A-3” 

ALLOCATED PURCHASE PRICES 
  

					
	 Facility
	  	Allocated
Purchase
Price	 
	 Legacy Ranch
	  	$	11,500,000	  
	 Isle at Cedar Ridge
	  	$	21,000,000	  
	 Isle at Watercrest – Bryan
	  	$	21,000,000	  
	 Watercrest at Bryan
	  	$	26,700,000	  
	 Isle at Watercrest – Mansfield
	  	$	25,000,000	  
	 Watercrest at Mansfield
	  	$	45,000,000	  
	 The Park at Plainfield
	  	$	26,500,000	  
	 The Springs
	  	$	10,500,000	  
		  	  
	  
	 
	 Total
	  	$	187,200,000	  
		  	  
	  
	 

 EXHIBIT “B” 

FORM OF ESCROW AGREEMENT FOR 

EARNEST MONEY DEPOSIT 

[Intentionally Omitted] 

EXHIBIT “C-1” 

FORM OF ILLINOIS DEED 

[Intentionally Omitted] 

EXHIBIT “C-2” 

FORM OF TEXAS DEED 

[Intentionally Omitted] 

EXHIBIT “D” 

FORM OF BILL OF SALE 

[Intentionally Omitted] 

EXHIBIT “E” 

FORM OF ASSIGNMENT AND ASSUMPTION OF INTANGIBLE PROPERTY 

[Intentionally Omitted] 

 EXHIBIT “F” 

FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES AND CONTRACTS 

[Intentionally Omitted] 

EXHIBIT “G” 

FORM OF ASSIGNMENT AND ASSUMPTION OF RESIDENT AGREEMENTS 

[Intentionally Omitted] 

EXHIBIT “H” 

FORM OF FIRPTA CERTIFICATE 

[Intentionally Omitted] 

EXHIBIT “I” 

FORM OF OWNER’S AFFIDAVIT 

[Intentionally Omitted] 

 EXHIBIT “J” 

FORM OF NOTICE TO RESIDENTS 

[Intentionally Omitted] 

EXHIBIT “K” 

FORM OF ASSIGNMENT OF PURCHASE CONTRACT 

TO APPLICABLE PROPERTY 

[Intentionally Omitted] 

EXHIBIT “L” 

CAP AMOUNTS 

[Intentionally Omitted] 

EXHIBIT “M” 

FORM OF POST-CLOSING ESCROW AGREEMENT 

[Intentionally Omitted] 

EXHIBIT “N” 

NOI PURCHASE PRICE INCREASE CALCULATION FOR EXTENDED CLOSING DATE PROPERTIES 

[Intentionally Omitted] 

SCHEDULE “1” 

EXCLUDED INTELLECTUAL PROPERTY RIGHTS 

[Intentionally Omitted] 

SCHEDULE “2” 

NATIONAL CONTRACTS 

[Intentionally Omitted] 

 SCHEDULE “9.2(e)” 

LITIGATION 
 [Intentionally
Omitted] 
 SCHEDULE “9.2(g)” 

MATERIAL CONTRACTS 

[Intentionally Omitted] 

SCHEDULE “9.2(h)” 

NOTICE OF MATERIAL VIOLATION OF LEGAL REQUIREMENTS 

[Intentionally Omitted] 

 SCHEDULE “9.2(j)” 

MATERIAL HEALTHCARE PERMITS 

[Intentionally Omitted] 

SCHEDULE “9.2(k)” 

LEASES 
 [Intentionally
Omitted] 
 SCHEDULE “9.2(l)” 

ENVIRONMENTAL REPORTS 

[Intentionally Omitted] 

SCHEDULE “9.2(n)” 

RENT ROLL 
 [Intentionally
Omitted]

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