Document:

Exhibit

Exhibit 10(b)
	
					
	DISCRETIONARY COMPENSATION

Because special situations occur where individual achievement may not be adequately recognized under incentive plans, the Compensation and Governance Committee (the “Committee”), at the beginning of each fiscal year, grants authority to the Chief Executive Officer to distribute additional discretionary cash and/or stock compensation up to an aggregate maximum amount to eligible participants for each particular fiscal year. 
For fiscal year 2017, the aggregate amount of cash compensation approved by the Committee was $500,000, and the maximum number of shares approved by the Committee was 125,000 shares of Common Stock. The stock compensation may be in the form of share award opportunities and/or outright grants of shares of Common Stock, all to be awarded under the Company's Amended and Restated 2003 Stock Option and Incentive Plan.  Discretionary compensation is awarded based upon individual effort and is paid in amounts and at such times as the Chief Executive Officer determines, in his sole discretion. No employee has a guaranteed right to discretionary compensation in the event that performance targets are not met.
For awards of stock compensation, eligible participants include any employee of the Company, excluding the Chief Executive Officer and any Section 16 reporting officers of the Company.  For awards of cash compensation, eligible participants include executive officers of the Company, excluding the Chief Executive Officer.  The Chief Executive Officer may grant cash compensation to other employees outside of the authority granted by the Committee.PROMISSORY
NOTE PURCHASE AGREEMENT

 

THIS
PROMISSORY NOTE PURCHASE AGREEMENT (this “Agreement”) made and entered into effective as of the 29th
day of August, 2016 (the “Effective Date”), by and among GLOBAL HEALTHCARE REIT, INC., a Utah corporation (“Purchaser”),
and JOE COLLINS (“Collins”), FRANK DICRISTINA (“DiCristina”), DICK EDELMAN (“Edelman”)
DAVID HOLEWINSKI (“Holewinski”), HP LONOKE, LLC (“HP Lonoke”) RYAN SCHINDLER (“Schindler”),
and STANLEY PARTNERS, LLLP (“Stanley”) (each individually a “Seller” and collectively “Sellers”).

 

WITNESSETH:

 

WHEREAS,
each Seller owns an undivided interest set forth on Exhibit A hereto (the “Interest” or “Purchased Interest”)
in a promissory note in the original principal amount of $1,650,000 (the “Note”) issued by GL Nursing, LLC, a Georgia
limited liability company (the “Company”), in favor of GLN Investors, LLC, a Georgia limited liability company (“GLN”);
and

 

WHEREAS,
the outstanding principal balance of the Note is $1,550,000; and

 

WHEREAS,
Sellers desires to sell to Purchaser, and subject to the conditions set forth herein Purchaser desires to purchase from Sellers,
the Interests on the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, for and in consideration of the above premises and the mutual covenants and agreements hereinafter set forth, and
for other good and valuable consideration, the receipt and sufficiency of which being hereby acknowledged, the parties hereto
do hereby agree as follows:

 

1.Transfer
of the Purchased Interests. For the consideration hereinafter provided and subject to the terms and conditions herein
set forth, on the Closing Date each Seller hereby (i) sells, assigns, transfers and delivers to Purchaser, and Purchaser hereby
purchases and acquires from Seller, the Purchased Interests.

 

2.Purchase
Price. Subject to the terms of this Agreement and in reliance on the representations and warranties of Sellers contained
herein, the purchase price for the Purchased Interests shall be an aggregate of 1,350,000 shares of the Common Stock, $0.05 par
value, of Purchaser, to be allocated pro rata among the Sellers in accordance with their percentage interests in the Note
(the “Purchase Price”).

 

3.Conditions
to Closing and Closing Date. The obligation of Purchaser to purchase the Interests is conditioned upon the Company, a
wholly-owned subsidiary of Purchaser, securing and consummating an operating lease (“Lease”) for its Willow Pointe
facility located in Lonoke, Arkansas having terms satisfactory to Purchaser (the “Closing Condition”). Closing of
the purchase and sale of the Interests shall occur by mutual agreement of Sellers and Purchaser no later than five (5) business
days following the satisfaction of the Closing Condition. If the Closing Condition is not satisfied on or before September 24,
2016, (the “TermPination Date”) this Agreement shall terminate and the rights and obligations of the parties under
this Agreement shall be null and void.

 

    	 	 	 

    	 		 

    

 

4.Representations
of Sellers.

 

a.
In consideration of the transfer and assignment of the Purchased Interests, each Seller represents and warrants that he/she has
agreed to sell the Purchased Interests based upon their own investigations of the Company, its financial condition and results
of operations, that they have not relied upon any statement, representation or information provided by the Company, or the Purchaser,
or their respective affiliates and representatives, in connection with their decision to sell the Purchased Interests for the
Purchase Price.

 

b.
Upon the consummation of this Agreement, each Seller represents and warrants that he/it shall have no further interest in the
Note and no further interest, direct or indirect, in the Company or GLN.

 

c.
The Interests of Sellers constitute 100% of the outstanding interests in the Note and upon consummation of this Agreement, there
shall be no further outstanding interest, direct or indirect, in the Note.

  

5.Representations
of Sellers with Respect to Purchaser’s Shares. Each Seller severally represents and warrants in connection with
accepting shares of the Purchaser’s Common Stock as the Purchase Price for the Purchased Interests, as follows:

 

a.Each
of the undersigned, by reason of his/her knowledge and experience in financial and business matters, believes himself capable
of evaluating the merits and risks of this investment.

 

b.In
connection therewith, each Seller represents and warrants his/her understanding that this investment is extremely speculative
and subject to a high degree of risk. Investor further understands that because of the speculative nature of this investment,
he may lose the entire investment and Investor represents that he has the economic wherewithal to absorb a total loss of this
investment.

 

c.The
undersigned acknowledges receipt of such information as he deems necessary or appropriate as a prudent and knowledgeable investor
in evaluating the purchase or acquisition of the shares. The undersigned acknowledges that the Purchaser has made available to
him the opportunity to obtain additional information to evaluate the merits and risks of this investment. The undersigned acknowledges
that he had the opportunity to ask questions of the Purchaser, and, to the extent he availed himself of such opportunity, he received
satisfactory answers from the Purchaser, or its affiliates, associates, or employees concerning the terms and conditions of the
offering.

 

d.Based
upon the foregoing, each Seller acknowledges the risk and highly speculative aspect of the shares he is acquiring in the Purchaser,
he is familiar with the management, contemplated operations, financial conditions and all other factors regarding the Purchaser,
and has fully satisfied himself with respect to the nature of the investment, and has received no assurances of any kind whatsoever
relative thereto, nor have there been any other representations made by the Purchaser or any of its principals or affiliates regarding
any potential increment in value of the Purchaser’s stock acquired by Investor.

 

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e.The
undersigned hereby represents, warrants and agrees that he/she is acquiring the shares solely for his own account, for investment,
and not with a view to the distribution or resale thereof. The undersigned further represents that his/her financial condition
is such that he/she is not under any present necessity or constraint to dispose of such shares to satisfy any existing or contemplated
debt or undertaking.

 

f.THE
UNDERSIGNED IS AWARE OF THE FACT THAT THE SHARES OF COMMON STOCK OF PURCHASER HAVE NOT BEEN REGISTERED NOR IS REGISTRATION CONTEMPLATED
UNDER THE SECURITIES ACT OF 1933, AND ACCORDINGLY, THAT SUCH SHARES MUST BE HELD INDEFINITELY UNLESS THEY ARE SUBSEQUENTLY REGISTERED
UNDER SAID ACT OR UNLESS, IN THE OPINION OF COUNSEL FOR THE COMPANY, A SALE OR TRANSFER MAY BE MADE WITHOUT REGISTRATION THEREUNDER.
The undersigned agrees that any certificate evidencing the Shares may bear a legend restricting the transfer thereof subject to
the approval of the Purchaser that the transfer is lawful.

 

g.Sellers
agree that the shares being acquired will not be sold, transferred or assigned without a valid registration statement being in
effect, or in the opinion of counsel for the Purchaser, pursuant to an exemption from registration.

 

h.Each
Seller represents and warrants that he/she qualifies as an “accredited investor within the meaning of Rule 501(a) of Regulation
D under the Securities Act of 1933, as amended. 

 

6.Release.
FOR VALUABLE CONSIDERATION, the receipt and sufficiency whereof are hereby acknowledged, each Seller, together with
his/her employees, attorneys, agents, affiliates, representatives, successors, spouses, heirs, and assigns , both past and present,
(“Releasor”) hereby irrevocably and unconditionally releases, acquits and forever discharges the Company, GLN and
the Purchaser, together with their respective affiliates, agents, employees, officers, directors, representatives, shareholders,
attorneys, successors and assigns, (“Releasees”) of and from any and all charges, complaints, grievances, claims,
actions, causes of action, suits, liabilities, obligations, promises, agreements, demands, controversies, rights, damages, costs,
debts, losses, expenses (including attorneys’ fees and costs actually incurred or to be incurred), from any rights claimed
or asserted by any reason and any other rights, whether statutory, contractual, or tortious, known or unknown, foreseen or unforeseen,
at law or in equity, including damages and consequences known or foreseen resulting from or which may result from any matter,
transaction, fact, occurrence or conduct which has occurred or does or shall otherwise exist, at or prior to the date hereof,
including, but not limited to, any and all liability for claims, damages, or causes of action of whatsoever kind, known or unknown.

 

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7.Representations
and Warranties of Purchaser. To induce Seller to consummate the purchase and sale transaction contemplated by this Agreement,
Purchaser hereby represents and warrants as follows:

 

a.Purchaser
is purchasing the Purchased Interests for its own account.

 

b.Purchaser
is aware that the Purchased Interests have not been registered under any securities laws and may not be resold or transferred
except in a transaction which complies with applicable federal and state securities laws, and Purchaser shall not make any such
resale or transfer except in compliance with such laws.

 

c.Upon
execution and delivery by Purchaser, this Agreement will constitute the valid and legally binding agreement of Purchaser, enforceable
in accordance with its terms.

 

8.Miscellaneous.

 

a.Each
party hereto agrees to take such further actions and to execute and deliver such additional instruments and documents as the other
parties hereto may from time to time reasonably request to effectuate the transfer of the Purchased Interests to Purchaser, and
to effect the purposes of this Agreement.

 

b.The
parties hereto agree that they shall bear their own corresponding expenses incurred in connection with the preparation and negotiation
of this Agreement and the consummation of the transactions contemplated hereunder.

 

c.All
notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly and properly
given and received when personally delivered or three (3) days after mailing by United States Mail, postage prepaid, addressed
as follows:

 

If
to Purchaser:

 

8480
Orchard Road, Suite 3600 

Greenwood
Village, CO 80111 

Attn:
Lance Baller, Interim CEO

  

If
to Sellers:

  

or
to such other persons or at such different addresses as may be specified in writing, given by one party to the other in accordance
with the foregoing.

 

d.This
Agreement constitutes the entire and complete agreement of the parties hereto with respect to the subject matter hereof. Neither
this Agreement nor any provision contained herein may be changed, modified, discharged or terminated orally, but only by an instrument
in writing signed by both of the parties hereto.

 

e.This
Agreement shall be governed and construed in accordance with the laws of the State of Colorado. Titles of Paragraphs in this Agreement
are for convenience only and neither limit nor amplify the provisions hereof.

 

f.No
assignment or transfer by any party hereto of his rights and obligations hereunder shall be made except with the prior written
consent of the other party hereto. This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and
their respective personal representatives, heirs, successors in interest and permitted assigns.

 

g.Time
is of the essence of this Agreement.

 

h.No
waiver or breach of any provision of this Agreement shall constitute a waiver or breach of any other provision hereof. The failure
of any party hereto to insist upon strict adherence to any term of this Agreement on any occasion shall not constitute a waiver
or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term contained herein.
All remedies provided by law or any agreement hereunder, and the exercise of any such remedy, shall not be deemed an election
to the exclusion of any other remedy, any such claim by the other party being hereby waived.

 

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

 

	 	PURCHASER:
	 	 	 
	 	GLOBAL HEALTHCARE REIT, INC., a Utah corporation
	 	 	 
	 	By:	/s/
    Lance Baller
	 	 	Lance
    Baller, Interim CEO
	 	 	 
	 	SELLERS: 
	 	 	 
	 	/s/ Joe Collins
	 	JOE COLLINS
	 	 	 
	 	/s/ Frank DiCristina
	 	FRANK DICRISTINA
	 	 	 
	 	/s/ Dick Edelman
	 	DICK EDELMAN
	 	 	 
	 	/s/ David Holewinski
	 	DAVID HOLEWINSKI
	 	 	 
	 	HP LONOKE, LLC 
	 	 	 
	 	By:	/s/
    Elliott Hollander
	 	 	Elliott
    Hollander, Manager
	 	 	 
	 	/s/ Ryan Schindler
	 	RYAN SCHINDLER
	 	 	 
	 	STANLEY PARTNERS, LLLP
	 	 	 
	 	By:	STANLEY
    PARTNERS, INC.
	 	Its:	General
    Partner

 

	 	By:	/s/
    T. Bahnson Stanely
	 	 	President

  

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EXHIBIT
A

  

	Seller	 	Principal Loan

 Amount

 Outstanding	 	 	Percentage of

 Aggregate Loan

 Amount Outstanding	 	 	Shares of Company

 Common Stock

 
 (Purchase Price)
	 
	Joe Collins	 	$	250,000	 	 	 	16.1	%	 	 	217,742	 
	Frank DiCristina	 	$	100,000	 	 	 	6.5	%	 	 	87,097	 
	Dick Edelman	 	$	37,500	 	 	 	2.4	%	 	 	32,661	 
	David Holewinski	 	$	100,000	 	 	 	6.5	%	 	 	87,097	 
	HP Lonoke, LLC	 	$	765,000	 	 	 	49.4	%	 	 	666,290	 
	Ryan Schindler	 	$	197,500	 	 	 	12.7	%	 	 	172,016	 
	Stanley Partners, LLLP	 	$	100,000	 	 	 	6.5	%	 	 	87,097	 
	TOTAL:	 	$	1,550,000	 	 	 	100.0	%	 	 	1,350,000	 

 

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