Document:

Guaranty

 Exhibit 10.6 

 

 GUARANTY 

THIS GUARANTY (the “Guaranty”) is executed as of August 29, 2012, by CNL HEALTHCARE
TRUST, INC., a Maryland corporation (“Guarantor”) in favor of SYNOVUS BANK, a Georgia state banking corporation (together with its successors and assigns, “Lender”). 

RECITALS: 
 A. CHT Harborchase Assisted Living Owner, LLC, a Delaware limited liability company (“Borrower”), has requested that Lender make a loan to Borrower in the principal sum of up to Seventeen
Million Three Hundred Twenty-Eight Thousand Twenty-Seven and 00/100 Dollars ($17,328,027.00) in order to finance the construction of a new assisted living facility containing 30 dementia care units and 66 assisted living units to be known as
HarborChase of Villages Crossing (the “Facility”) near The Villages in Lady Lake, Sumter County, Florida. The Loan will be evidenced by Borrower’s Promissory Note of even date herewith (the “Note”) and that
certain Loan Agreement by and between Lender and Borrower of even date herewith (the “Loan Agreement”), and will secured by, among other things, a Mortgage and Security Agreement, of even date herewith (the “Security
Instrument”) granting a first lien on the Facility and other property more particularly described therein (the “Mortgaged Property”). The Note, the Loan Agreement, the Security Instrument and the other documents,
certificates, instruments and agreements executed by Borrower in connection with the Loan or to otherwise evidence or secure the Loan, and all renewals, supplements, or amendments thereto or a part thereof, are collectively referred to as the
“Loan Documents.” Capitalized terms used herein without definitions shall have the meaning set forth in the Loan Agreement. 
 B. As a condition of making the Loan, Guarantor has agreed to guaranty payment of the Guaranteed Obligations (as defined below), subject to the terms and conditions set forth in this Guaranty. 

NOW, THEREFORE, as an inducement to Lender to make the Loan to Borrower, and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties do hereby agree as follows: 

ARTICLE 1. 

NATURE AND SCOPE OF GUARANTY 
 1.1 Guaranty of Obligation. Guarantor hereby irrevocably and unconditionally guarantees to Lender and its successors and assigns, the payment and performance of the Future Operating Deficit
Guaranty Obligations (as defined in Section 1.2) and the Guaranteed Recourse Obligations of Borrower (as defined in Section 1.3) (collectively, the “Guaranteed Obligations”) as and when the same shall be due
and payable. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor. 
 1.2 Future Operating Deficit Guaranty Obligations. Guarantor hereby absolutely and unconditionally guarantees to Lender, commencing with the first fiscal quarter ending after the
month which is 24 months after the date Facility opens for business (anticipated to be December 31, 2015) (the “First Test Date”), and for each quarter thereafter until the Termination

 Exhibit 10.5 

 

 
Date (as defined below), the full and punctual payment of Operating Deficits incurred by the Facility during such quarter, provided that Guarantor’s obligation to fund such Operating
Deficits shall in no event exceed One Million Eight Hundred Thousand and No/100 Dollars ($1,800,000.00) in the aggregate (the “Future Operating Deficit Guaranty Obligations”), and provided further that the Future Operating Deficit
Guaranty Obligations will be due and payable only if the following conditions have occurred: 
 (a) First, Loan
proceeds in the amount of the Budgeted Operating Deficits shall be have been fully advanced by Lender to Borrower pursuant to the Loan Agreement; and 
 (b) Second, as of the Determination Date, the Facility shall have failed to satisfy the following Debt Service Coverage Ratios: 

 

	 	 (i)
	 for the First Test Date, a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only payments due under the Loan, of not
less than 1.0 to 1.0, tested based on the preceding calendar month; 

  

	 	 (ii)
	 for the first quarter ending after the First Test Date, a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only
payments due under the Loan, of not less than 1.0 to 1.0, tested based on a trailing 3-calendar month basis; 

  

	 	 (iii)
	 for the second quarter ending after the First Test Date, a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only
payments due under the Loan, of not less than 1.3 to 1.0, tested based on a trailing 6-calendar month basis; 

  

	 	 (iv)
	 for the third quarter ending after the First Test Date, a Debt Service Coverage Ratio for the Facility, tested on the basis of interest only
payments due under the Loan, of not less than 1.5 to 1.0, tested based on a trailing 9-calendar month basis; 

  

	 	 (v)
	 for the fourth quarter ending after the First Test Date, and for all quarter thereafter until the Termination Date, a Debt Service Coverage Ratio
for the Facility, tested on the basis of interest only payments due under the Loan, of not less than 1.5 to 1.0, tested based on a trailing 12-calendar month basis. 

The Future Operating Deficits Guaranty Obligation shall, at Guarantor’s option, be satisfied by any of the following
payment options set forth in paragraphs (a), (b), or (c): 
 (c) Guarantor shall elect to fund Operating
Deficits directly to Borrower as a capital contribution on a monthly basis. In such event, Guarantor shall provide Lender with evidence of the amount of the additional Operating Deficit and the funding of the related capital contribution to Borrower
(provided that if a Default or Event of Default has occurred and is continuing under the terms of the Loan, Guarantor shall, at Lender’s option, fund directly to Lender upon demand by Lender). Such evidence of funding shall be delivered to
Lender together with a Guaranty Certificate executed by a financial officer of Guarantor, which Guaranty Certificate shall certify to the Lender the amount of the additional Operating Deficit and the related capital contribution funded by the
Guarantor and the amount of the remaining Future Operating Deficit Guaranty Obligations and Lender shall evidence its agreement with such amounts by delivering its countersignature to the Guaranty Certificate to the Guarantor. If Lender fails
to object to the 

 Exhibit 10.5 

 

 
amounts shown on the Guaranty Certificate or the evidence provided by the Guarantor within thirty (30) days of receipt from the Guarantor, such evidence and the Guaranty Certificate shall be
deemed approved. Each capital contribution confirmed or deemed confirmed by Lender under this paragraph (a) by Guarantor shall reduce Guarantor’s liability for the Future Operating Deficit Guaranty Obligations on a dollar for dollar
basis; or 
 (d) Guarantor shall deposit the sum of One Million Eight Hundred Thousand and No/100 Dollars
($1,800,000.00) with Lender in a reserve account, to be advanced by Lender to Borrower, provided that no Default or Event of Default has occurred, in order to finance Operating Deficits on a monthly basis; such reserve funds and the reserve account
will be pledged to Lender to secure the Loan Obligations; or 
 (e) Guarantor shall make a reduction of Loan
principal in the amount of One Million Eight Hundred Thousand and No/100 Dollars ($1,800,000.00). 
 Guarantor’s Future
Operating Deficit Guaranty Obligations will remain in full force and effect until the earlier of (i) reduction of the Loan principal in accordance with subsection (e) above or (ii) such time as Facility has maintained a Debt Service
Coverage Ratio, tested on the basis of interest only payments due under the Loan, of not less than 1.5 (tested based on a trailing 6-calendar month basis), and has achieved a stabilized Occupancy Covenant of at least 80% tested based on a trailing
6-calendar month basis (the “Termination Date”). On the Termination Date, provided that no Event of Default has occurred under the Loan Documents, Guarantor’s Future Operating Deficits Guaranty Obligations will cease and
terminate, and any remaining reserve amount deposited with Lender pursuant to paragraph (b) above will be released to Guarantor. Any prepayment made pursuant to paragraph (c) above, however, will not be refunded by Lender. 

1.3 Guaranteed Recourse Obligations of Borrower. In addition to the Guarantor’s Future Operating
Deficit Guaranty Obligations, Guarantor shall also guarantee to Lender the prompt payment of any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including attorneys’ fees and costs reasonably incurred)
arising out of or in connection with the following occurring on or after the date hereof (collectively, the “Guaranteed Recourse Obligations of Borrower”): 

(a) fraud, material misrepresentation, gross negligence or willful misconduct by Borrower, Lessee,
Guarantor or any of their respective partners, officers, principals, members, any other guarantor or any other person authorized to make statements or representations, or act, on behalf of Borrower or Guarantor in connection with the Loan;

 (b) physical waste committed on the Mortgaged Property; damage to the Mortgaged Property as a
result of the intentional misconduct or gross negligence of Borrower, Lessee, or any of their respective principals, officers, general partners or members, or any agent or employee of any such persons; or the removal of any portion of the Mortgaged
Property in violation of the terms of the Loan Documents following an Event of Default; 

 Exhibit 10.5 

 

 (c) subject to any right to contest such matters, as
provided in the Security Instrument, and to the extent accrued and/or payable prior to a foreclosure or delivery of a deed-in-lieu, failure to pay any valid taxes, assessments, mechanic’s liens, materialmen’s liens or other liens which
could create liens on any portion of the Mortgaged Property which would be superior to the lien or security title of the Security Instrument or the other Loan Documents, to the full extent of the amount claimed by any such lien claimant; 

(d) all legal costs and expenses (including attorneys’ fees) reasonably incurred by Lender in
connection with litigation or other legal proceedings involving the collection or enforcement of the Loan, this Guaranty or preservation of Lender’s rights under the Loan Documents or this Guaranty, including any costs incurred by Lender
arising from or relating to the filing of a petition under the U.S. Bankruptcy Code by or against Borrower, Lessee, or Guarantor, other than those customarily incurred by a Lender in realizing upon its lien in an uncontested foreclosure sale after
an undisputed default; 
 (e) the breach of any representation, warranty, covenant or
indemnification provision in the Lessee’s Environmental Indemnity Agreement of even date herewith given by Lessee to Lender or in the Loan Agreement concerning Hazardous Materials Laws or Hazardous Substances; 

(f) the misapplication or conversion by Borrower or Lessee of (A) any insurance proceeds paid by
reason of any loss, damage or destruction to the Mortgaged Property, (B) any awards or other amounts received by Borrower or Lessee in connection with the condemnation of all or a portion of the Mortgaged Property, or (C) any Rents by
Borrower or Lessee following an Event of Default; and 
 (g) any security deposits or other
refundable deposits collected by Borrower or Lessee with respect to the Mortgaged Property which are not delivered to Lender upon a foreclosure of the Mortgaged Property or action in lieu thereof, except to the extent any such security deposits were
applied in accordance with the terms and conditions of any of the Leases (as defined in the Security Instrument) prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu thereof. 

Notwithstanding anything to the contrary in the Note or any of the Loan Documents, (A) Lender shall not be deemed to
have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the debt secured by the Security Instrument or to require that all
collateral shall continue to secure all of the debt owing to Lender in accordance with the Loan Documents, and (B) Guarantor shall be liable for the full amount of the debt and all obligations of Borrower to Lender under the Loan Documents in
the event that: (i) the first full monthly payment of principal and interest under the Note which becomes due after the date of this Guaranty is not paid when due; (ii) Borrower or Lessee fails to provide financial information required to
be produced by Borrower or Lessee under any Loan Document within thirty (30) days after the date upon which such financial information is due and Lender has given at least fifteen (15) days prior written notice to Borrower or Lessee of
such failure by Borrower or 

 Exhibit 10.5 

 

 
Lessee to provide such information; (iii) Borrower fails to maintain its status as a Single Purpose Entity (it being understood that, in the absence of a violation of any other provision of
Section 5.4 of the Loan Agreement, Guarantor shall not have any recourse liability for any requirement in such section which required Borrower to remain solvent after the date of this Guaranty; or (iv) except for Permitted Encumbrances
and/or Permitted Transfers, Borrower fails to obtain Lender’s prior written consent to any Transfer (as defined in the Security Instrument). 
 1.4 Nature of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance and not a guaranty of collection. This Guaranty may not be revoked by
Guarantor and shall continue to be effective with respect to any Guaranteed Obligations arising or created after any attempted revocation by Guarantor. The fact that at any time or from time to time the Guaranteed Obligations may be increased or
reduced shall not release or discharge the obligation of Guarantor to Lender with respect to the Guaranteed Obligations. This Guaranty may be enforced by Lender and any subsequent holder of the Note and shall not be discharged by the assignment or
negotiation of all or part of the Note. 
 1.5 Guaranteed Obligations Not Reduced by Offset. The
Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender hereunder, shall not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense of Borrower, or any other party,
against Lender or against payment of the Guaranteed Obligations, whether such offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise. 

1.6 Payment By Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid
when due, whether at demand, maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender, and without presentment, protest, notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice
of acceleration of the maturity, or any other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed Obligations to Lender at Lender’s address as set forth herein. Such demand(s) may be made at
any time coincident with or after the time for payment of all or part of the Guaranteed Obligations, and may be made from time to time with respect to the same or different items of Guaranteed Obligations. Such demand shall be deemed made, given and
received in accordance with the notice provisions hereof. 
 1.7 No Duty To Pursue Others. It
shall not be necessary for Lender (and Guarantor hereby waives any rights which Guarantor may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first to (i) institute suit or exhaust its remedies against
Borrower or others liable on the Loan or the Guaranteed Obligations or any other person, (ii) enforce Lender’s rights against any collateral which shall ever have been given to secure the Loan, (iii) enforce Lender’s rights
against any other guarantors of the Guaranteed Obligations, (iv) join Borrower or any others liable on the Guaranteed Obligations in any action seeking to enforce this Guaranty, (v) exhaust any remedies available to Lender against any
collateral which shall ever have been given to secure the Loan, or (vi) resort to any other means of obtaining payment of the Guaranteed Obligations. Lender shall not be required to mitigate damages or take any other action to reduce, collect
or enforce the Guaranteed Obligations. 

 Exhibit 10.5 

 

 1.8 Waivers. Guarantor agrees to the provisions of the
Loan Documents, and hereby waives notice of (i) any loans or advances made by Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any amendment or extension of the Note, the Security Instrument or of any other Loan Documents,
(iv) the execution and delivery by Borrower and Lender of any other loan or credit agreement or of Borrower’s execution and delivery of any promissory notes or other documents arising under the Loan Documents or in connection with the
Mortgaged Property, (v) the occurrence of any breach by Borrower or an Event of Default, (vi) Lender’s transfer or disposition of the Guaranteed Obligations, or any part thereof, (vii) sale or foreclosure (or posting or
advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations, (viii) protest, proof of non-payment or default by Borrower, or (ix) any other action at any time taken or omitted by Lender, and, generally, all
demands and notices of every kind in connection with this Guaranty, the Loan Documents, any documents or agreements evidencing, securing or relating to any of the Guaranteed Obligations and the obligations hereby guaranteed. 

1.9 Payment of Expenses. In the event that Guarantor should breach or fail to timely perform any provisions
of this Guaranty, Guarantor shall, immediately upon demand by Lender, pay Lender all costs and expenses (including court costs and attorneys’ fees) incurred by Lender in the enforcement hereof or the preservation of Lender’s rights
hereunder. The covenant contained in this Section shall survive the payment and performance of the Guaranteed Obligations. 
 1.10 Effect of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor relief law, or any judgment, order or decision thereunder,
or any agreement, stipulation or settlement, Lender must rescind or restore any payment, or any part thereof, received by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of
this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force and effect. It is the intention of Borrower and Guarantor that Guarantor’s obligations hereunder shall not be discharged except by
Guarantor’s performance of such obligations and then only to the extent of such performance. 
 1.11
Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty, Guarantor hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now
or hereafter have under any agreement, at law or in equity (including, without limitation, any law subrogating the Guarantor to the rights of Lender), to assert any claim against or seek contribution, indemnification or any other form of
reimbursement from Borrower or any other party liable for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in connection with this Guaranty or otherwise. Guarantor hereby waives all rights and defenses
arising out of an election of remedies by Lender. Specifically, and without in any way limiting the foregoing, Guarantor hereby waives any rights of subrogation, indemnification, contribution or reimbursement or any right of recourse to or with
respect to Borrower or the assets or property of Borrower or to any collateral for the Loan. In connection with the foregoing, Guarantor expressly waives any and all rights of subrogation to Lender against Borrower, and Guarantor hereby waives any
rights to enforce any remedy which Lender may have against Borrower and any right to participate in any collateral for the Loan. In addition to and without in any way limiting the foregoing, Guarantor hereby subordinates any and all

 Exhibit 10.5 

 

 
indebtedness of Borrower now or hereafter owed to Guarantor to all indebtedness of Borrower to Lender, and agrees with Lender that Guarantor shall not demand or, during the continuance of an
Event of Default, accept any payment of principal or interest from Borrower, shall not claim any offset or other reduction of Guarantor’s obligations hereunder because of any such indebtedness and shall not take any action to obtain any of the
collateral for the Loan. Further, Guarantor shall not have any right of recourse against Lender by reason of any action Lender may take or omit to take under the provisions of this Agreement or under the provisions of any of the Loan Documents. If
any amount shall nevertheless be paid to a Guarantor by Borrower or another Guarantor during the continuance of an Event of Default and prior to payment in full of the Obligations (hereinafter defined), such amount shall be held in trust for the
benefit of Lender and shall forthwith be paid to Lender to be credited and applied to the Obligations, whether matured or unmatured. The provisions of this paragraph shall survive the termination of this Guaranty, and any satisfaction and discharge
of Borrower by virtue of any payment, court order or any applicable law. Without limiting the foregoing Guarantor waives (i) Guarantor’s rights of subrogation, reimbursement, indemnification, and contribution and any other rights and
defenses that are or may become available to Guarantor by reason of any state law; (ii) any rights or defenses Guarantor may have in respect of its obligations as a guarantor by reason of any election of remedies by the Lender; and
(iii) all rights and defenses that Guarantor may have because the Borrower’s debt is secured by real property. This means, among other things, Lender may collect from Guarantor without first foreclosing on any real or personal property
collateral pledged by Borrower; and if Lender forecloses on any real property collateral pledged by Borrower, the amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral
is worth more than the sale price, and Lender may collect from Guarantor even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower. This is an unconditional and irrevocable
waiver of any rights and defenses Guarantor may have because the Borrower’s debt evidenced by the Note is secured by real property. 
 1.12 Borrower. The term “Borrower” as used herein shall include any new or successor corporation, association, partnership (general or limited), joint venture, trust or other
individual or organization formed as a result of any merger, reorganization, sale, transfer, devise, gift or bequest of Borrower or any interest in Borrower. 
 ARTICLE 2. 
 EVENTS AND CIRCUMSTANCES NOT REDUCING 

OR DISCHARGING GUARANTOR’S OBLIGATIONS 

Guarantor hereby consents and agrees to each of the following, and agrees that Guarantor’s obligations under this
Guaranty shall not be released, diminished, impaired, reduced or adversely affected by any of the following, and waives any common law, equitable, statutory or other rights (including without limitation rights to notice) which Guarantor might
otherwise have as a result of or in connection with any of the following: 
 2.1 Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, the Note, the Security Instrument, the other Loan Documents, or any other document, instrument, contract or understanding
between Borrower and Lender, or any other parties, pertaining to the Guaranteed Obligations or any failure of Lender to notify Guarantor of any such action. 

 Exhibit 10.5 

 

 2.2 Adjustment. Any adjustment, indulgence, forbearance or
compromise that might be granted or given by Lender to Borrower or any Guarantor. 
 2.3 Condition of
Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the
Guaranteed Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any
reorganization of Borrower or Guarantor. 
 2.4 Invalidity of Guaranteed Obligations. The
invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations, or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without limitation the fact that
(i) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (ii) the act of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives executing the
Note, the Security Instrument or the other Loan Documents or otherwise creating the Guaranteed Obligations acted in excess of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) the Borrower has valid
defenses, claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from Borrower, (vi) the creation, performance or repayment of the Guaranteed Obligations (or the
execution, delivery and performance of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations, or given to secure the repayment of the Guaranteed Obligations) is illegal,
uncollectible or unenforceable, or (vii) the Note, the Security Instrument or any of the other Loan Documents have been forged or otherwise are irregular or not genuine or authentic, it being agreed that Guarantor shall remain liable hereon
regardless of whether Borrower or any other person be found not liable on the Guaranteed Obligations or any part thereof for any reason. 
 2.5 Release of Obligors. Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part thereof, or of any co-guarantors, or any other person or entity
now or hereafter liable, whether directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part thereof, it being recognized, acknowledged and agreed
by Guarantor that Guarantor may be required to pay the Guaranteed Obligations in full without assistance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that other parties will be liable to pay or perform the Guaranteed Obligations, or that Lender will look to other parties to pay or perform the Guaranteed Obligations. 

2.6 Other Collateral. The taking or accepting of any other security, collateral or guaranty, or other
assurance of payment, for all or any part of the Guaranteed Obligations. 

 Exhibit 10.5 

 

 2.7 Release of Collateral. Any release, surrender,
exchange, subordination, deterioration, waste, loss or impairment (including without limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any time existing in connection with, or
assuring or securing payment of, all or any part of the Guaranteed Obligations. 
 2.8 Care and
Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation, protection, enforcement, sale or other handling or treatment of all or any part of such collateral, property or security,
including but not limited to any neglect, delay, omission, failure or refusal of Lender (i) to take or prosecute any action for the collection of any of the Guaranteed Obligations or (ii) to foreclose, or initiate any action to foreclose,
or, once commenced, prosecute to completion any action to foreclose upon any security therefor, or (iii) to take or prosecute any action in connection with any instrument or agreement evidencing or securing all or any part of the Guaranteed
Obligations. 
 2.9 Unenforceability. The fact that any collateral, security, security interest or
lien contemplated or intended to be given, created or granted as security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or shall prove to be unenforceable or subordinate to any
other security interest or lien, it being recognized and agreed by Guarantor that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility or value of any of
the collateral for the Guaranteed Obligations. 
 2.10 Offset. The Note, the Guaranteed
Obligations and the liabilities and obligations of the Guarantor to Lender hereunder shall not be reduced, discharged or released because of or by reason of any existing or future right of offset, claim or defense of Borrower against Lender, or any
other party, or against payment of the Guaranteed Obligations, whether such right of offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise. 

2.11 Merger. The reorganization, merger or consolidation of Borrower into or with any other corporation or
entity. 
 2.12 Preference. Any payment by Borrower to Lender is held to constitute a preference
under bankruptcy laws, or for any reason Lender is required to refund such payment or pay such amount to Borrower or someone else. 
 2.13 Other Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Documents, the Guaranteed Obligations, or the security and collateral therefor,
whether or not such action or omission prejudices Guarantor or increases the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous and unequivocal intention of Guarantor that
Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not otherwise or particularly
described herein, which obligation shall be deemed satisfied only upon the full and final payment and satisfaction of the Guaranteed Obligations. 

 Exhibit 10.5 

 

 ARTICLE 3. 
 REPRESENTATIONS AND WARRANTIES 
 To induce Lender to
consent to the Transfer and the Assumption, Guarantor represents and warrants to Lender as follows: 
 3.1
Benefit. Guarantor is an affiliate of Borrower, is the owner of a direct or indirect interest in Borrower, and has received, or will receive, direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed
Obligations. 
 3.2 Familiarity and Reliance. Guarantor is familiar with, and has independently
reviewed books and records regarding, the financial condition of the Borrower and is familiar with the value of any and all collateral intended to be created as security for the payment of the Note or Guaranteed Obligations; however, Guarantor is
not relying on such financial condition or the collateral as an inducement to enter into this Guaranty. 
 3.3
No Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement to Guarantor in order to induce the Guarantor to execute this Guaranty. 

3.4 Guarantor’s Financial Condition. As of the date hereof, and after giving effect to this Guaranty
and the contingent obligation evidenced hereby, Guarantor is, and will be, solvent, and has and will have assets which, fairly valued, exceed its obligations, liabilities (including contingent liabilities) and debts, and has and will have property
and assets sufficient to satisfy and repay its obligations and liabilities. 
 3.5 Legality. The
execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder do not, and will not, contravene or conflict with any law, statute or regulation whatsoever to which Guarantor is
subject or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under, or result in the breach of, any indenture, mortgage, deed of trust, charge, lien, or any contract, agreement or other
instrument to which Guarantor is a party or which may be applicable to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws
of general application relating to the enforcement of creditors’ rights. 
 3.6 Survival. All
representations and warranties made by Guarantor herein shall survive the execution hereof. 
 ARTICLE 4. 

SUBORDINATION OF CERTAIN INDEBTEDNESS 

4.1 Subordination of All Guarantor Claims. As used herein, the term “Guarantor Claims” shall mean
all debts and liabilities of Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and
several, or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the person or persons in whose favor such debts or liabilities may,

 Exhibit 10.5 

 

 
at their inception, have been, or may hereafter be created, or the manner in which they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shall include without limitation
all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of Guarantor’s payment of all or a portion of the Guaranteed Obligations. Upon the occurrence of an Event of Default or the
occurrence of an event which would, with the giving of notice or the passage of time, or both, constitute an Event of Default, Guarantor shall not receive or collect, directly or indirectly, from Borrower or any other party any amount upon the
Guarantor Claims. 
 4.2 Claims in Bankruptcy. In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief, or other insolvency proceedings involving Guarantor as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish its rights hereunder and receive directly from
the receiver, trustee or other court custodian dividends and payments which would otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such dividends and payments to Lender. Should Lender receive, for application upon the Guaranteed
Obligations, any such dividend or payment which is otherwise payable to Guarantor, and which, as between Borrower and Guarantor, shall constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of the Guaranteed Obligations,
Guarantor shall become subrogated to the rights of Lender to the extent that such payments to Lender on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation shall be with respect to that
proportion of the Guaranteed Obligations which would have been unpaid if Lender had not received dividends or payments upon the Guarantor Claims. 
 4.3 Payments Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any funds, payment, claim or distribution which is
prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall have absolutely no dominion over the amount of such funds,
payments, claims or distributions so received except to pay them promptly to Lender, and Guarantor covenants promptly to pay the same to Lender. 
 4.4 Liens Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guarantor Claims
shall be and remain inferior and subordinate to any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guaranteed Obligations, regardless of whether such encumbrances in favor
of Guarantor or Lender presently exist or are hereafter created or attach. Without the prior written consent of Lender, Guarantor shall not (i) exercise or enforce any creditor’s right it may have against Borrower, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or proceedings (judicial or otherwise, including without limitation the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement. debtor’s relief or
insolvency proceeding) to enforce any liens, mortgage, deeds of trust, security interests, collateral rights, judgments or other encumbrances on assets of Borrower held by Guarantor. 

 Exhibit 10.5 

 

 ARTICLE 5. 
 MISCELLANEOUS 
 5.1 Waiver. No failure
to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other
right. The rights of Lender hereunder shall be in addition to all other rights provided by law. No modification or waiver of any provision of this Guaranty, nor consent to departure therefrom, shall be effective unless in writing and no such consent
or waiver shall extend beyond the particular case and purpose involved. No notice or demand given in any case shall constitute a waiver of the right to take other action in the same, similar or other instances without such notice or demand.

 5.2 Notices. Any notice, demand, statement, request or consent made hereunder shall be in
writing and shall be deemed to be received by the addressee on the third day following the day such notice is deposited with the United States Postal Service first class certified mail, return receipt requested, addressed to the address, as set
forth below, of the party to whom such notice is to be given, or to such other address as either party shall in like manner designate in writing. 
 The addresses of the parties hereto are as follows: 
 If to
Guarantor: 
 CNL Healthcare Trust, Inc. 

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

Attn: Joseph T. Johnson, SVP and CFO and Holly Greer, SVP and General Counsel 

with a copy to: 
 Lowndes, Drosdick, Doster, Kantor & Reed, P.A. 
 215 N.
Eola Drive 
 Orlando, Florida 32801 

Attn: Peter Luis Lopez, Esq. 
 If to Lender: 
 Synovus Bank 

800 Shades Creek Parkway 
 Suite 375 
 Birmingham, Alabama 35209 

Attn: Senior Housing and Healthcare Lending 

with a copy to: 
 Burr & Forman LLP 

 Exhibit 10.5 

 

 420 North 20th Street 

Suite 3400 
 Birmingham, Alabama 35203 
 Gail Livingston Mills, Esq.

 Either party may change its address to another single address by notice given as herein provided, except any change of
address notice must be actually received in order to be effective. 
 5.3 Governing Law. This
Guaranty shall be governed by and construed in accordance with the laws of the State of Florida and the applicable laws of the United States of America. 
 5.4 Invalid Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Guaranty, such
provision shall be fully severable and this Guaranty shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining provisions of this Guaranty shall remain in
full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary to the basic
understandings and intentions of the parties as expressed herein. 
 5.5 Amendments. This Guaranty
may be amended only by an instrument in writing executed by the party or an authorized representative of the party against whom such amendment is sought to be enforced. 

5.6 Parties Bound: Assignment, Joint and Several. This Guaranty shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, assigns and legal representatives; provided, however, that Guarantor may not, without the prior written consent of Lender, assign any of its rights, powers, duties or obligations
hereunder. If Guarantor consists of more than one person or party, the obligations and liabilities of each such person or party shall be joint and several. 
 5.7 Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty. 

5.8 Recitals. The recital and introductory paragraphs hereof are a part hereof, form a basis for this
Guaranty and shall be considered prima facie evidence of the facts and documents referred to therein. 
 5.9
Counterparts. To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all
persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making proof of this Guaranty to produce or account for more than a single counterpart
containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to
another counterpart identical thereto except having attached to it additional signature pages. 

 Exhibit 10.5 

 

 5.10 Rights and Remedies. If Guarantor becomes liable for
any indebtedness owing by Borrower to Lender, by endorsement or otherwise, other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights of Lender hereunder shall be cumulative of any and all
other rights that Lender may ever have against Guarantor. The exercise by Lender of any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or
remedy. 
 5.11 Other Defined Terms. Any capitalized term utilized herein shall have the meaning
as specified in the Security Instrument, unless such term is otherwise specifically defined herein. 
 5.12
Entirety. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER,
NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS
GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND LENDER. 
 5.13 Waiver of Right
To Trial By Jury. GUARANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE SECURITY INSTRUMENT, OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND
VOLUNTARILY BY GUARANTOR AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER AND GUARANTOR ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH
IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY LENDER AND GUARANTOR. 
 [Remainder of Page Intentionally Left
Blank] 

 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be properly
executed by its duly authorized representative as of the date first above written. 
  

			
		  	 GUARANTOR:

		
	 Signed, sealed and delivered
	  	 CNL HEALTHCARE TRUST, INC.,

	 in the presence of:
	  	 a Maryland corporation

		
	 /s/ Cathleen A. Coffey
	  	 By: /s/ Joshua J. Taube

	 Print Name: Cathleen A. Coffey
	  	 Joshua J. Taube, Vice President

		
	 /s/ Carla S. Love
	  	
	 Print Name: Carla S. Love
	  	
		  	

  

					
	 STATE OF FLORIDA
	  	 	)	  
	 COUNTY OF ORANGE
	  	 	)	  

 The foregoing instrument was acknowledged before me this 29th day of August, 2012, by
Joshua J. Taube as Vice President of CNL Healthcare Trust, Inc., a Maryland corporation. He is personally known to me or has produced
                                        
as identification and did not take an oath. 
  

			
		  	 s/ Cathleen A. Coffey

		  	 Print Name: Cathleen A. Coffey

		  	 Notary Public Comm # DD0919126

	 [NOTARY STAMP OR SEAL]
	  	 My Commission Expires: 09/24/2013Development Agreement

 Exhibit 10.7 
 DEVELOPMENT AGREEMENT 
 THIS DEVELOPMENT
AGREEMENT (“Agreement”) is being entered into as of this 29th day of August, 2012, by and among HARBOR RETIREMENT ASSOCIATES, LLC, a Florida limited liability company (“Harbor”), and CHT HARBORCHASE
ASSISTED LIVING OWNER, LLC, a Delaware limited liability company (“Owner”). 
 RECITALS: 

WHEREAS, Owner is the owner of certain property located in The Villages, Sumter County, Florida and is developing,
designing, constructing, furnishing and equipping thereon a new assisted living facility containing 30 dementia care units and 66 assisted living units (with a pro forma capacity of 112 residents), with related amenities, to be known
as HarborChase of Villages Crossing (the “Project”); and 
 WHEREAS, Owner desires to
appoint and retain Harbor to perform certain services in connection with the development, design, construction, furnishing and equipping of the Project, in accordance with the terms and provisions of this Agreement set forth below; and 

WHEREAS, the Project will be managed for Owner by Harbor’s affiliate, Harbor Villages Management, LLC
(“Manager”) pursuant to a Management Agreement to be entered into between Owner and Manager or its wholly-owned affiliate (the “Management Agreement”), in a form acceptable to Harbor and Owner; and 

WHEREAS, the parties hereto intend to set forth their understanding of the development of the Project and their
respective rights and obligations in connection therewith. 
 NOW, THEREFORE, for the mutual covenants
and considerations herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound agree as follows: 

1. Definitions. As used herein, the following terms shall have the meanings set forth below. 

(a) “Audio/Video Systems” shall mean general audio and video systems (audio/video) for the public areas
of the Project, entertainment audio/video systems for common areas and units, and master antenna television distribution system for function spaces. 
 (b) “Change Order” shall mean a written request by Harbor, a Project Consultant or the General Contractor which authorizes or requests a deletion or addition to the contractual
obligations of a Project Consultant or changes, increases or reduces the scope of work, schedule, or price under one of the Contract Documents. 
 (c) “Contract Documents” shall mean the Project Budget, Project Schedule, Project Drawings, construction and other contracts and agreements entered into by Harbor (or its affiliates) or
at Harbor’s request, by Owner, in connection with the development and construction of the Project Development, as from time to time amended, including, but not limited to, the contract to be entered into with the General Contractor, contracts
with Project Consultants for the Project Development, and the Contracts, including any general and special conditions and all schedules and exhibits thereto. 

 (d) “Construction Loan” shall mean that certain loan dated
August 29, 2012 from Synovus Bank in the maximum principal amount of $17,328,027 for the development of the property and construction of improvements thereon. 

(e) “Cost Savings” shall have the meaning set forth in Section 7. 

(f) “Contracts” shall mean equipment leases relating to telephone switches and voice mail and other
equipment leases related to the Project and which are to survive the Closing. 
 (g) “Decorative
Items” shall mean, by way of example, but not limitation, artifacts, artwork, banquettes, carpeting, curtains, decorative lighting fixtures, draperies, etched glass, furniture, graphics, interior landscaping, televisions, wall coverings and
window treatments. 
 (h) “Developer Holdback Account” shall mean an escrow account established
with a title company or party mutually acceptable to the parties into which thirty percent (30%) of the Development Fee shall be paid, pursuant to Exhibit 6 and Harbor’s share of Cost Savings shall be deposited pursuant to
Paragraph 7. 
 (i) “Food Equipment” shall mean all food preparation, cooking and holding
equipment; exhaust hoods and hood fire protection systems; general storage layout; refrigerators and freezers (including coils, condensers and compressors); ice-making, beverage dispensing and other food and beverage equipment; dishwashing equipment
(except any glass washer included in Housekeeping Equipment); and all other similar items required for a complete food and beverage service of the Project. 
 (j) “Force Majeure Event” shall mean any failure or delay in performance caused by any strikes, lock-outs, labor disputes, fires, acts of God or public enemy, extreme weather, including
but not limited to, hail, wind, hurricanes, tornadoes and flooding or restrictions or prohibitions by any Governmental Authority. 
 (k) “General Contractor” shall mean Proctor Construction Company, the general contractor retained by Owner for the construction of the Project pursuant to a Standard Form of Agreement
between Owner and General Contractor dated                         . Other general contractors for the Project, if any,
shall be retained pursuant to Section 4(d). 
 (l) “Governmental Authority” shall mean any
board, bureau, commission, department or body of any municipal, county, state or federal governmental or quasi-governmental unit, or any subdivision thereof, having or acquiring jurisdiction over the Project Development or any portion thereof or the
management, operation, use or improvement thereof. 
 (m) “Harbor” shall mean Harbor Retirement
Associates, LLC, a Florida limited liability company. 

  
 2 

 (n) “Housekeeping Equipment” shall mean stationary
equipment items (including glass washer) to be used by Project employees for cleaning the Project on a regular basis. 
 (o) “Laundry Equipment” shall mean valet laundry with limited capacity, which includes: washers, dryers, shirt pressers and linen carts. 

(p) “Management Agreement” shall mean that certain agreement between Owner and Manager for the
management and operation of the Project. 
 (q) “Manager” shall mean Harbor or its wholly-owned
affiliate which will manage and operate the Project as described above. 
 (r) “Material
Changes” shall have the meaning ascribed to such term in Section 4(u). 
 (s) “Opening
Date” shall mean, with respect to the Project, the date as of which: (i) a Certificate of Substantial Completion has been issued for the Project and there has been a final inspection of the Project (as provided for in Section 4(q)
below), subject only to minor punch list items which Harbor shall cause to be corrected or completed after such date; (ii) a certificate of occupancy has been issued for the Project by the appropriate Governmental Authority(iii) the
Project is fully furnished in accordance with this Agreement; and (iv) the Project is fully licensed and open for business to the public as an assisted living facility in the State of Florida. As of the date of this Agreement, the projected
Opening Date is November 1, 2013. 
 (t) “Owner Change Order(s)” shall mean any change(s)
to the Scope of Work requested by Owner pursuant to Section 5(a)(ix) below. 
 (u) “Permits and
Approvals” shall have the meaning set forth in Section 4(a). 
 (v) “Pre-Opening
Activities” shall mean those services performed or caused to be performed by Manager in connection with preparations to prepare the Project for opening, which are described more fully in Section 4(w). 

(w) “Project Budget” shall mean the budget for all costs and expenses that have been, or are expected to
be, incurred by Harbor and Owner in connection with the construction, development and opening of the Project, as provided by and as may be modified from time to time in compliance with this Agreement. The Project Budget approved by Harbor and Owner
is attached hereto as Exhibit 1. 
 (x) “Project Consultants” shall mean the third
party consultants, contractors and service providers for the Project, including the General Contractor, which have been or shall be engaged pursuant to Section 4(d). All Project Consultants listed on Exhibit 3 are hereby approved by
Owner. Any future Project Consultant retained by Harbor shall be approved by Owner in accordance with Section 4(d). 
 (y) “Project Development” shall mean the construction and development of the Project contemplated herein, which shall include all planning, permitting, design, construction,

  
 3 

 
furnishing and equipping associated therewith. The Project Development shall also include all work required to: (x) coordinate the development and construction of the Project with
(1) all Governmental Authorities and other persons or entities with authority, or approval rights, over all or part of the Project, and (2) all Project Consultants; and (y) obtain all Permits and Approvals. 

(z) “Project Drawings” shall mean the construction drawings and specifications for the Project
(including, without limitation, conceptual or schematic documents, interior design drawings and specifications), which shall be prepared, and may be modified from time to time, in compliance with the provisions hereof. As used herein, the term
“initial Project Drawings” shall mean the initial Project Drawings for the Project, identified on Exhibit 2. 
 (aa) “Project Schedule” shall mean the schedule for completion of the Project and all components thereof as may be modified from time to time, in compliance with the provisions hereof. As
used herein the term “initial Project Schedule” shall mean the Project Schedule identified on Exhibit 5, which is hereby approved by Harbor and Owner. If a Force Majeure Event occurs or an Owner Change Order results in a delay,
then the completion date for the Project, as provided for in the Project Schedule, shall be extended, as applicable, by a commercially reasonable amount of time based on the Owner Change Order or one day for each day commencing with the start of the
cause or circumstance giving rise to the Force Majeure Event and ending as soon as possible after that cause or circumstance has ceased to have effect. 
 (bb) “Project Systems” shall mean management systems, including front office, back office and accounting management systems; the Manager’s automated payroll system; point-of-sale
systems, including food, beverage and retail functions; and word processing and personal computer applications. 

(cc) “Punchlist Items” shall mean all items at variance in any material respect with the Contract
Documents or any defects in construction or installation upon Substantial Completion. 
 (dd) “Scope of
Work” shall mean all necessary or required efforts to complete the Project Development in accordance with the Contract Documents, including without limitation the Project Drawings, and shall include procuring and installing all FF&E and
Inventories (as defined in the Management Agreement), Trade Equipment, Audio/Visual Systems, Telecommunication Systems and Security Systems appropriate and necessary to operate the Project as an assisted living Project with related amenities and the
Pre-Opening Activities described in Section 4(w). 
 (ee) “Security Systems” shall mean
closed circuit television camera monitoring system, two-way radio system, and other special security systems required for the Project. 
 (ff) “Telecommunication Systems” shall mean the telephone equipment for the Project, including a private branch exchange system (“PBX”), if any, call accounting and
pocket paging system. 
 (gg) “Trade Equipment” shall mean Food Equipment, Laundry Equipment
and Housekeeping Equipment. 

  
 4 

 2. Scope of Work. 

(a) Standard of Conduct. The Project Development shall be undertaken and the Scope of Work completed pursuant to
the provisions hereof and the parties hereto shall perform and fully discharge all of their duties, responsibilities and obligations set forth herein diligently, promptly, in good faith and in full compliance with the provisions hereof, in a manner
consistent with that degree of care and skill ordinarily exercised by developers of commercial projects similar in size and nature to the Project Development. 
 (b) Project Drawings. Harbor and Owner hereby approve the initial Project Drawings for the Project Development identified on Exhibit 2 of this Agreement. 

3. Management of Project. 

(a) General. The parties agree that Harbor and Owner shall have the right, responsibility, power and authority to
cause the completion of the Project Development, subject to the provisions hereof. 
 (b) Cooperation.
Harbor and Owner shall cooperate with each other with the goal of completing the Project Development: (i) pursuant to the provisions hereof; and (ii) in accordance with the Contract Documents. 

4. Rights and Obligations of Harbor. Harbor shall have the responsibility for causing completion of the
Project Development pursuant to the provisions hereof, subject to Owner’s rights as set forth in this Agreement, and Harbor shall fully perform and discharge all of the duties, responsibilities and obligations required to complete the Project
Development in accordance with the Contract Documents. Harbor’s responsibilities shall include the following: 
 (a) Permits and Approvals. Except as otherwise provided in this Agreement, Harbor shall be required to submit, process and prepare all applications, plans, specifications, permits and approvals,
and related information and documents as may be required by any and all Governmental Authorities having jurisdiction over the Project Development and the performance of Harbor’s obligations under this Agreement (together, the “Permits
and Approvals”). In furtherance of this provision, no later than thirty (30) days after the date of this Agreement, Harbor will deliver to Owner an inventory of the Permits and Approvals, a schedule of when the Permits and Approvals
are anticipated to be obtained (to the extent not already issued), and copies of any existing Permits and Approvals (together, the “Permit Schedule”). The Permit Schedule shall be updated monthly by Harbor on the last Friday of each
month during the term of this Agreement, until such time as all the Permits and Approvals required for the Project Development have been obtained and copies of the same have been delivered to Owner. Harbor shall be responsible for overseeing the
implementation and performance of its obligations hereunder in compliance with the Permits and Approvals. In addition, to the extent required by applicable law, or permissible under applicable law, Harbor shall be obligated to assign and transfer
the Permits and Approvals to Owner, in whole or in part as applicable, to the extent the same relate to or affect Owner’s ownership, use or occupancy of the Facility. 

  
 5 

 (b) Lien Law. From draws on the Construction Loan, make all payments
required to all third parties in conformity with the requirements of the Construction Lien Law of Florida, so that the Project remains free of mechanics liens or any similar claim arising in equity. 

(c) Sales Tax. From draws on the construction loan on the Project, comply (or cause compliance) with the Florida
Sales and Use Tax law as it may apply to any and all of its respective obligations hereunder, and to the supplies, materials and equipment purchased or leased in connection therewith. 

(d) Project Consultants. Engage, as agent for Owner, and supervise and coordinate all Project Consultants as
necessary to complete the Project Development pursuant to the provisions hereof. A list of the Project Consultants currently under contract with Harbor is attached hereto as Exhibit 3. Additional Project Consultants, including any
replacements, shall be selected and engaged by Harbor; provided that Owner shall have given prior, written approval of the retention of all additional or replacement Project Consultants and the terms of their engagement (including the material
provisions of their contracts). Owner’s approval of any additional or replacement Project Consultants shall not be unreasonably withheld. If Owner refuses to approve a proposed additional or replacement Project Consultant, it must provide
Harbor with documentation sufficient to demonstrate the reasons for its disapproval. If such approval or disapproval is not given by Owner in writing within seven (7) business days after the date Harbor provides written request for same from
Owner, the replacement Project Consultant shall be deemed approved, unless Owner informs Harbor prior to the lapse of that time, that additional time is needed to make a determination. In the event that additional time is required, any decision must
be made without unnecessary delay, and in any case, within ten (10) business days of the original, written Harbor request for approval. In the event that the parties agree in writing that either Harbor or Owner should undertake the scope of
work of a Project Consultant, then Harbor or Owner, as the case may be, shall be compensated for any Project Consultant services supplied based on the amounts contained in the Project Budget for that particular scope of services. 

(e) Supervision. Supervise completion of the Project Development and the work of the Project Consultants and
administer the Contract Documents, to maintain compliance with the Scope of Work, the Project Drawings, the Project Budget and the Project Schedule. Harbor shall supervise the General Contractor and use commercially reasonable efforts to ensure that
the work of the General Contractor and all trade contractors conforms to the requirements of the Contract Documents, as determined in accordance with usual and customary construction practices, and Harbor shall use commercially reasonable efforts to
ensure that corrections to any work that is deficient or out of compliance with the Contract Documents is timely made by or on behalf of the General Contractor in a manner so as to not affect the efficient progress of the work. 

(f) Project Schedule. Establish, manage and periodically update the Project Schedule to reflect approved revisions
and communicate such revisions to Owner. 
 (g) Project Drawings. Cause the preparation of any necessary
revisions to the Project Drawings and deliver such revisions to Owner for its review and approval to the extent required by Section 4(u) of this Agreement. 

  
 6 

 (h) Project Budget. Manage the Project Budget in accordance with the
terms of this Agreement. 
 (i) Reports. Make available to Owner (and its representatives) upon request
all material non-proprietary reports and other material information relating to the progress of the Project Development and/or provided by the General Contractor, the Project’s architect (the “Architect”) and other Project Consultants
(the “Project Development Reports”). Owner (and its representatives), at its expense, shall be entitled to make copies of any or all Project Development Reports. Provide Owner with an accrual-basis balance sheet/trial balance within
five (5) days following the end of each calendar month. Provide Owner with weekly check registers for the months of January, April, July and October within thirty (30) days following the end of each applicable calendar quarter. 

(j) Delivery of Review Material. Promptly deliver, or cause the applicable Project Consultant to promptly deliver,
all documents and information that Owner is obligated to review pursuant to the provisions hereof, or that Owner has the right to review pursuant to the provisions hereof and requests in writing from Harbor. 

(k) Books and Records. Maintain the books and records of the Project Development including originals and copies of
all contracts, Change Orders, drawings, plans, specifications, and the like (collectively, the “Project Development Documents”), and at Owner’s request, make the same available to Owner at all reasonable times. To the extent
applicable, the accounting records constituting a part of the Project Development Documents shall be maintained in a professional and businesslike manner, in accordance with customary development practices. In addition, at Owner’s request,
Harbor shall cause the General Contractor to make the shop drawings and product data available to Owner at all reasonable times. 
 (l) Project Status. At all times keep Owner reasonably informed about the status of the Project, including those changes that do not require Owner’s approval pursuant to Section 4(u)
hereof, and at least once per calendar month submit or cause the General Contractor to submit a written report to Owner describing the status of the Project Development in a form substantially similar to Exhibit 4, attached hereto.

 (m) Performance. Endeavor to obtain satisfactory performance from the General Contractor and each of
the subcontractors, materials suppliers and laborers as well as the Project Consultants employed in the performance and satisfaction of the Project Development and, in the event of unsatisfactory performance, implement courses of action for
administering and curing such deficiencies. Harbor shall determine whether or not the work of the General Contractor and each of the subcontractors is being performed substantially in accordance with the requirements of the Contract Documents,
endeavoring to prevent or minimize defects and deficiencies in the work. 
 (n) Submission of Changes.
Submit in writing to Owner for its prior review and approval Material Changes as described in Section 4(u). 

  
 7 

 (o) Review of Proposals. Review and approve or disapprove within
seven (7) business days from receipt of Owner’s written proposal any proposed changes suggested by Owner, pursuant to Section 5(a)(viii), unless Harbor informs Owner prior to the lapse of that time, that additional time is needed to
make such determination. In the event additional time is required, any decision must be made without unnecessary delay, and in any case, within ten (10) business days of the original, written Owner proposal. If Harbor does not provide Owner
with its approval, disapproval or request for additional time within the time period provided, then such proposed change shall be deemed accepted and approved. 
 (p) On-site Representative. Provide to the Owner on site’s visiting representative, at Owner’s expense, reasonably adequate space together with reasonable access to a telephone, fax
machine, data line, copier and other customary support facilities at the Project Development to assist Owner in exercising its rights and obligations under this Agreement. 

(q) Substantial Completion. Coordinate with the Architect the issuance of a Certificate of Substantial Completion
(as contemplated under AIA Form B141) for the Project Development and supervise and conduct with the Architect and General Contractor a final inspection of the Project Development in the presence of Owner. Following such final inspection,
Harbor shall prepare, in concert with the Architect and General Contractor, a final report describing the Punchlist Items and, after approval thereof by Owner (which approval shall not be unreasonably withheld or delayed), supervise the General
Contractor and/or subcontractors, as appropriate, in the satisfaction of the Punchlist Items in accordance with the terms of this Agreement. 
 (r) Quality Materials. Ensure that all Contract Documents require that all materials and equipment installed during Project Development will be new unless otherwise specified, and use commercially
reasonable efforts to ensure that all work performed in connection with the Project Development will be of good quality, free from defects and substantially in accordance with the requirements of the Contract Documents. All work not substantially
conforming to the requirements of the Contract Documents shall be considered defective. Prompt notice of all defects shall be given to Owner by Harbor. 
 (s) Insurance. Throughout the term of this Agreement, Harbor shall provide and maintain, or cause the General Contractor or any subcontractors to provide and maintain, at no cost to Owner except as
included in the Project Budget, the following insurance: 
 (i) All risk builder’s risk
insurance policy for the Project Development including performing services with respect to the Project to maintain insurance coverage, at such party’s expense, consistent with Owner’s requirements as set forth on Exhibit 7. If Harbor
for any reason fails to obtain and/or maintain in force any of the insurance required, then Harbor shall and Harbor does hereby agree to, indemnify Owner against, and hold, save, and defend Owner harmless from, any and all claims, demands, actions,
causes of actions, suits, liabilities, damages, losses, costs and expenses of any kind or nature whatsoever (including, without limitation, reasonable attorneys’ fees and court costs incurred in enforcing this indemnity and otherwise) which
Owner may suffer or incur, or which may be asserted against Owner, because of Harbor’s failure to obtain or maintain such insurance. 

  
 8 

 (ii) Waiver of Subrogation for Builder’s Risk
Insurance. Owner and Harbor waive all rights against each other and any of their respective agents, employees and independent contractors, and the agents and employees of such independent contractors, for damages caused by fire or other causes
of loss to the extent required to be covered by Builders Risk Insurance required to be obtained by Harbor or to the extent covered by other property insurance applicable to the Project, except such rights as they have to proceeds of such insurance
held by the Owner as fiduciary. Owner or Harbor, as appropriate shall require of their agents and independent contractors, if any, by appropriate agreements, written where legally required for the validity, similar waivers each in favor of other
parties enumerated herein. The Builder’s Risk Policy shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise
have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest in the property damaged. 

(t) General Rights. Harbor shall have the right, power and authority to perform all actions that Harbor deems
necessary or desirable in order to complete the Project Development and to fulfill its obligations hereunder under this Agreement, subject to and in accordance with Owner’s rights under this Agreement. 

(u) Changes to Project Drawings and the Contract Documents. Harbor shall provide prior written notification to
Owner of any change to the Contract Documents. In addition, Harbor shall obtain the prior written approval of Owner before making any change to the Contract Documents or approving any Change Order that will: (i) change the design
intent of the Project Drawings; (ii) materially modify the term, scope or price of any of the Contract Documents; or (iii) increase or decrease the Project Budget by more than twenty-five thousand dollars ($25,000) per individual change or
one hundred twenty-five thousand dollars ($125,000) in the aggregate. The foregoing changes described in this Section 4(u) shall be referred to collectively as “Material Changes.” If, in Harbor’s reasonable business judgment, a
Material Change must be undertaken without first receiving Owner’s prior written approval because (a) such Material Change is necessitated by any immediate life, health or safety issue, or (b) to await written approval of the Material
Change would result in delay to the Project Schedule and such delay would result in an extraordinary expense, then Harbor must inform Owner of such event before proceeding and, thereafter, immediately seek Owner’s written approval.
Owner shall grant its approval if, in its reasonable business judgment, it determines that Harbor acted reasonably in making its determination to proceed without first obtaining Owner’s prior written approval. Owner shall be deemed to have
approved any Material Change if it has not given written notice to Harbor of its disapproval within seven (7) business days after the date on which Harbor submits such Material Change to Owner, together with such supporting documentation as
Owner may reasonably request, unless Owner informs Harbor prior to the lapse of that time, that additional time is needed to make such determination. In the event additional time is required, any decision must be made without unnecessary delay, and
in any case, within ten (10) business days of the original, written Harbor proposal. 
 (v) Loan
Compliance. Harbor will make a good faith effort to provide Owner with assistance in providing commercially reasonable additional reports required by Lender or otherwise fulfilling commercially reasonable requests made by Lender of Owner.

  
 9 

 (w) Pre-Opening Activities. Owner and Harbor recognize that certain
activities must be undertaken in advance of the opening of the Project so that the Project can function in an appropriate and orderly manner on the Opening Date. These Pre-Opening Activities are included in the Project Budget. Accordingly, prior to
the Opening Date, Harbor will, or will cause Manager to: 
 (i) Recruit, train and employ the
staff required for the Project; 
 (ii) Negotiate concession contracts and leases for the
Project, to the extent required; 
 (iii) Undertake pre-opening promotion and advertising,
including opening celebrations and related activities; 
 (iv) Review and approve the conceptual
design (architectural theme and building massing) and any changes thereto; 
 (v) Test and, if
necessary, implement modifications of the operations of the Project; 
 (vi) For a period ending
not later than sixty (60) days after the Opening Date, make provisions to provide a task force of personnel to supervise and assist the pre-opening and opening operations; 

(vii) Apply for and obtain the initial licenses and permits required for the operation of the Project;

 (viii) Equip the Project with the initial Inventories (as defined in the Management
Agreement) required for the operation of the Project; and 
 (ix) In general, render such other
miscellaneous services incidental to the preparation and organization of the Project’s operations as may be reasonably required for the Project to be adequately staffed and capable of operating on the Opening Date and during the year, including
development and implementation of marketing and sales programs, accounting and budgeting controls and similar operation items, as contemplated by the Management Agreement to be performed during the Pre-Opening Services Period (as defined in the
Management Agreement). 
 5. Rights and Obligations of Owner. Owner shall participate in the
Project Development pursuant to the provisions hereof and subject to Harbor’s rights as set forth above. In fulfilling such obligations, Owner shall: 
 (a) (i) Assign and authorize a representative located on or near the Project to monitor the Project Development and act as the primary Owner liaison for Harbor with respect to the Project; 

(ii) Review and approve the site plan for the Project, Permits and Approvals, and the Permit Schedule.
Owner shall be entitled to participate in the permitting process and shall be entitled to attend (and shall be given reasonable notice of) all meetings with governmental or quasi-governmental authorities or agencies regarding the site plan and the
Permits and Approvals or applications therefore; 

  
 10 

 (iii) Review and approve the programming of the Project
Development and any changes thereto (e.g., the square foot program, market analysis, market position, Project Development phasing, unit mixes and Project amenities). 

(iv) Review and approve residential floor plans, finishes, fixtures and appliances; 

(v) Review and approve interior design and color board presentations; 

(vi) Review and approve marketing strategies and model sales units; 

(vii) Owner hereby acknowledges that it has approved all Project Consultants listed on
Exhibit 3. Owner shall be entitled to review and approve all additional Project Consultants or replacement Project Consultants in accordance with Section 4(d) of this Agreement. 

(viii) Suggest to Harbor for its approval or disapproval changes to the Scope of Work provided that, in
Harbor’s reasonable discretion, such changes shall not compromise Project Schedule or increase the Project Budget. If the proposed changes do not compromise the Project Schedule or increase the Project Budget, then Harbor’s approval shall
not be unreasonably withheld; 
 (ix) Review, and approve or disapprove Material Changes in a
timely and reasonable manner as detailed in Section 4(u) hereof; 
 (x) Have the right
during the actual construction of the Project to attend all progress meetings, any General Contractor draw request meetings and other significant meetings with Project Consultants or other third parties regarding the Project Development; 

(xi) Review all Change Orders, material correspondence, applications for payment from Project Consultants
and evidence of payment relating to the Project Development. 
 By its execution of this Agreement, Owner
confirms that it has granted all approvals required of it pursuant to Sections 5(a)(ii)-(vii) above, and Owner ratifies Tim Smick’s execution, in Owner’s name and on its behalf, of the contract with the General Contractor for the
construction of the Project; 
 (b) Harbor’s Role. Owner acknowledges and agrees that Harbor shall
have the primary management obligations described in Section 4 above, and Owner shall cooperate with Harbor to ensure that Harbor is able to fulfill such obligations pursuant to the provisions hereof. 

  
 11 

 (c) Approval Rights. Owner shall have the right to approve all
Material Changes pursuant to Section 4(u) of this Agreement. Any approval required by Owner pursuant to this Section 5(c) or Sections 5(a)(ii)-(viii) shall not be unreasonably withheld or delayed. 

(d) Dispute Resolution. In the event that there is a dispute among the parties or if Owner disapproves any
Material Changes, Harbor may either agree or disagree with such disapproval. In the event that Harbor disagrees with such disapproval by Owner, or if the parties are unable to resolve any other disputes, Harbor and Owner will work in good faith to
resolve such dispute or disagreement; provided, however, that Harbor may proceed with such portion(s) of the Material Changes that Owner has not specifically disapproved. In addition, if Harbor and Owner are unable to resolve such dispute or
disagreement after ten (10) business days of good faith discussions and the non-resolution of the matter of dispute or disagreement adversely impacts the Project Schedule or the Project Budget, Harbor and Owner shall submit the dispute or
disagreement to a mediator for non-binding mediation, such mediator to be jointly selected by Harbor and Owner and the cost of such mediator equally shared between Harbor and Owner. If the non-resolution of the matter of dispute or disagreement
does not adversely impact the Project Schedule or the Project Budget, the parties shall continue to negotiate in good faith until agreement is reached or until further delay will adversely impact the Project Schedule or the Project Budget. If such
time arises when a further delay will adversely impact the Project Schedule or the Project Budget, the parties will submit the dispute or disagreement to a mediator as described in this Section 5(d) for binding mediation. 

6. Payment of Construction-Related Expenses. 

(a) Harbor Developer Fee. In consideration for the services provided pursuant to this Agreement, Owner will
pay Harbor a development fee of Seven Hundred Fifty-Four Thousand Four Hundred Five and No/100 Dollars ($754,405.00), payable in accordance with the schedule attached hereto as Exhibit 6. All Development Fee payment requests shall be
submitted to Owner for review and payment; provided that, to the extent to be paid pursuant to the Construction Loan, Owner will submit such requests to Lender within ten (10) days of receipt for payment (absent an Owner objection to the
matters contained therein) for payment pursuant to the draw procedures established by the Construction Loan. For draw requests to be funded from Owner’s equity, all draw requests shall be submitted to Owner for review and, absent any Owner
objection to the matters contained therein, shall be paid within ten (10) business days. If there are any disputed items within a draw request, all other items will be paid or forwarded to the Lender for payment, to the extent consistent with
the draw requirements under the Construction Loan. 
 (b) Draw Requests. All draw requests for
construction costs and draws on the operating loss reserve (to the extent required) shall be submitted to Owner for review and payment; provided that, to the extent to be paid pursuant to the Construction Loan, Owner will then submit such requests
to lender within ten (10) business days of receipt for payment (absent an Owner objection to the matters contained therein) and be paid by Lender within five (5) business days of submission to Lender pursuant to the draw procedures
established by the Construction Loan. For draw requests to be funded from Owner’s equity, all draw requests shall be submitted to Owner for review and, absent any Owner objection to the matters contained therein, shall be paid within ten
(10) business days. If there are any disputed items within a draw request, all other items will be paid or forwarded to the Lender for payment, to the extent consistent with the draw requirements under the Construction Loan. 

  
 12 

 7. Cost Savings and Overruns. If the Project Development is
completed (meaning that the Opening Date has occurred and Harbor has caused all Punch List Items to be completed to the reasonable satisfaction of Owner) for less than the total amount provided therefor in the Project Budget due to savings in the
Total Construction Budget (“Cost Savings”), then any such Cost Savings will be allocated one-half (1/2) to Harbor and one-half (1/2) to Owner. That portion owing to Harbor shall be capped at two percent (2%) of the
Total Construction Budget and paid by Owner to Harbor (as part of the Developer Holdback Account and to be disbursed under the conditions contained therein) promptly after a certificate of occupancy has been issued for the Project. If the Project
Development is completed for more than the total amount provided therefor in the Project Budget, then any cost overruns shall be governed by the provisions of Section 12 below. 

8. Term. The provisions of this Agreement, and the rights and obligations of Harbor and Owner hereunder,
shall terminate upon the latest of: (a) the full and final payment of all Project Consultants pursuant to the provisions of the Contract Documents and the receipt of the final certificate of occupancy for the Project; (b) the completion of
all Punchlist Items to the reasonable satisfaction of Owner; (c) the Project’s opening and commencement of operation for its intended use; and (d) the full and final payment of all amounts due pursuant to Sections 6 and 7 above.

 9. Health, Safety and Protection. In the performance of its obligations hereunder, each party
will comply with all applicable laws, ordinances, rules, regulations, standards, requirements and orders of any agency or organization having jurisdiction for the health, safety or well-being of persons or property or to protect them from damage,
injury or loss during the construction of the Project. Each party will use commercially reasonable efforts to ensure that its contractors, agents, employees, consultants and other representatives erect and maintain, as required by the nature of the
task, all necessary facilities and safeguards for the health, safety and protection to prevent damage, injury or loss during the construction of the Project. 
 10. Default. If any party hereunder shall fail to perform any of the material covenants and agreements contained herein and such condition or failure continues for a period of ten
(10) days (or such additional period as may be reasonably required to effectuate a cure of the same) after written notice thereof from the other party hereto, the non-defaulting party may terminate this Agreement, in which event the prorated
amount of the developer fees earned to date pursuant to Section 6 above by Harbor, if Harbor is the non-defaulting party, shall become immediately due and payable to Harbor, and shall be paid within ten (10) days of the defaulting
party’s receipt of written notice of such termination. 
 If Owner is the non-defaulting party and elects to
terminate this Agreement as set forth above, as an additional remedy, Owner shall have the right to terminate the Management Agreement without payment of any termination fee or other fees that accrue after the date of termination. 

  
 13 

 If Harbor is the non-defaulting party and elects to terminate this Agreement
as set forth above, then Harbor shall be entitled to: 
 (a) Immediate release from any construction-related
guaranty and indemnification by Owner from and against any and all claims thereunder arising from and after the date of termination; 
 (b) Payment of all monies held in the Developer Holdback Account; 

(c) Payment of the balance of the portion of its Development Fee owed for work performed through termination; 

(d) To terminate the Management Agreement; and 

(e) To exercise any and all of its rights at law or in equity to recover additional damages against Owner. 

Upon termination of this Agreement pursuant to this Section 10, except as set forth in the preceding paragraphs,
neither party shall have any further liability or obligation to the other pursuant to this Agreement, except for provisions (if any) that survive termination. 
 If any lawsuit or other legal proceeding arises in connection with the enforcement of this Agreement, the prevailing party therein shall be entitled to receive from the non-prevailing party the prevailing
party’s costs and expenses, including reasonable attorneys’ fees, incurred in connection therewith, in preparation therefore and on appeal therefrom, which amounts shall be included in any judgment therein. 

11. Notices. Notices to be given under the terms of this Agreement shall be in writing and delivered by
hand, or sent by certified or registered mail, postage prepaid, return receipt requested, or sent by a recognized, national overnight delivery service, or sent by e-mail with a follow up sent by one of the other methods provided for herein:

  

			
	 To Owner:
	  	 CHT Harborchase Assisted Living Owner, LLC

c/o CNL Healthcare Trust, Inc.
 Attn: Holly Greer, SVP and General Counsel and
 Joseph T. Johnson, SVP and Chief
Financial Officer
 450 South Orange Avenue
 Orlando, FL 32801
 E-mail: Holly.Greer@cnl.com

E-mail: Joseph.Johnson@cnl.com

		
	 with a copy to:
	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

450 S. Orange Avenue, Suite 800
 Orlando, FL 32801
 Attn: John D. Ruffier, Esquire

E-mail: john.ruffier@lowndes-law.com

  
 14 

			
	 To Harbor:
	  	 Harbor Retirement Associates, LLC
 1440 Highway AIA
 Vero Beach, Florida 32963

Attn: Tim Smick

E-mail: tsmick@hraonline.net

		
	 with a copy to:
	  	 Foley & Lardner LLP
 111 N. Orange Avenue, Suite 1800
 Orlando, Florida 32801

Attn: Mike Okaty Esquire
 E-mail: mokaty@foley.com

 or at such other address as is from time to time designated by the party receiving the notice. A notice
shall be deemed to have been given upon delivery, evidenced by appropriate signature, pursuant to the methods described above. 
 12. Cost Overruns. If the Project Development is completed for more than the total amount provided for in the Project Budget, then unless the increase resulted from an Owner Change Order or
Force Majeure Event, such increase shall be the responsibility of and paid by Harbor. 
 13.
Miscellaneous. 
 (a) This Agreement may be executed in a number of identical counterparts.
If so executed, all counterparts shall, collectively, constitute one agreement, but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart, provided that photocopy or facsimile copies of
the signatures of all parties are produced. 
 (b) The provisions of this Agreement shall not be modified,
amended, waived, discharged or terminated except by a written document signed by all of the parties hereto. 

(c) No party, except for such liability to each other and their respective affiliates as contemplated herein, shall be
liable to any nonparty for any matters relating to the Project, including defective or delayed portions of the Project Development and construction means, methods or techniques, and all nonparties shall look solely to such rights under the Contract
Documents, if any, and the warranties contained therein, for any matters or claims relating to the Project. 

(d) This Agreement and its validity, interpretation and enforcement shall be governed by the laws of the State of
Florida. 
 (e) The provisions of this Agreement shall be binding upon, and inure to the benefit of, the
parties’ successors and permitted assigns. 
 (f) 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. 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the day and year first above written. 
  

			
	 CHT HARBORCHASE ASSISTED LIVING OWNER,

LLC, a Delaware limited liability company

		
	 By:
	 	 /s/ Kevin Maddron

	 Name:
	 	 Kevin Maddron

	 Title:
	 	 Senior Vice President

	
	 HARBOR RETIREMENT ASSOCIATES, LLC,

a Florida limited liability company

		
	 By:
	 	 /s/ Timothy S. Smick

	 Name:
	 	 Timothy S. Smick

	 Title:
	 	 CEO

  
 16

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