Document:

Guaranty Agreement

 Exhibit 10.4 
 GUARANTY AGREEMENT 
 THIS GUARANTY AGREEMENT
(“Guaranty”) made as of May 31, 2013, CNL HEALTHCARE PROPERTIES, INC., a Maryland corporation (“Guarantor”), to and for the benefit of KEYBANK NATIONAL ASSOCIATION, a national banking association, as
administrative agent for the benefit of the Lenders, its successors and assigns (“Agent”). 
 RECITALS

 A. On or about the date hereof, CHP Batesville Healthcare Owner, LLC (“Batesville”),
CHP Broadway Healthcare Owner, LLC (“Broadway”), CHP Jonesboro Healthcare Owner, LLC (“Jonesboro”), CHP Magnolia Healthcare Owner, LLC (“Magnolia”), CHP Mine Creek Healthcare Owner, LLC
(“Mine Creek”), and CHP Searcy Healthcare Owner, LLC (“Searcy”) (Batesville, Broadway, Jonesboro, Magnolia, Mine Creek, and Searcy being collectively referred to as “Borrower”), Agent and the
Lenders entered into that certain Secured Loan Agreement (“Loan Agreement”) whereby the Lenders agreed to make a secured term loan (the “Loan”) available to Borrower in the maximum aggregate amount at any time
outstanding not to exceed the sum of Thirty Million and No/100 Dollars ($30,000,000.00), for the acquisition of the Projects. 
 B. In connection with the Loan, Borrowers have executed and delivered one or more promissory notes (collectively, the “Notes”), of even date herewith and payable to the order of the
Lenders in the aggregate amount of $30,000,000.00, payment of which is secured by (i) the Mortgages made by Borrower in favor of Agent for the benefit of the Lenders on the Project and (ii) the other Loan Documents. 

C. Guarantor will derive financial benefit from the Loan evidenced and secured by the Notes, the Mortgages and the other
Loan Documents. 
 D. The Lenders have relied on the statements and agreements contained herein in agreeing to
make the Loan. The execution and delivery of this Guaranty by Guarantor is a condition precedent to the making of the Loan by the Lenders. 
 E. Initially capitalized terms used and not otherwise defined herein shall have the meanings respectively ascribed to them in the Loan Agreement. 

AGREEMENTS 
 NOW, THEREFORE, intending to be legally bound, Guarantor, in consideration of the matters described in the foregoing Recitals, which Recitals are incorporated herein and made a part hereof, and for other
good and valuable consideration the receipt and sufficiency of which are acknowledged, hereby covenants and agrees with Agent for the benefit of the Lenders and their respective successors, indorsees, transferees, participants and assigns as
follows: 
 1. Guarantor absolutely, unconditionally and irrevocably guarantees to Lender: 

(a) the full and prompt payment of any Enforcement Costs (as hereinafter defined in Section 8
hereof). 

  
 1 

 (b) any loss, damage, cost, expense, liability or obligation
suffered or incurred by the Lenders arising out of, on account of, or in connection with the misapplication or conversion of any tenant security deposits, insurance proceeds, condemnation awards, or any proceeds from the sale of a portion of any
Project received by any Borrower and not delivered over to Agent or used to restore the Project in accordance with the terms of the Loan Agreement; 

(c) any loss, damage, cost, expense, liability or obligation suffered or incurred by the Lenders arising
out or on account of or based upon any fraud or willful misrepresentation of a material fact by any Borrower or Guarantor in any document executed or presented to Agent or any Lender in connection with the Loan; 

(d) any amount(s) necessary to repair or replace any damage to or destruction of any Project which is the
result of willful misconduct or gross negligence on the part of any Borrower including, without limitation, waste, any act of arson or malicious destruction by any Borrower; 

(e) any loss, damage, cost, expense, liability or obligation suffered or incurred by the Lenders out of or
on account of or based upon the failure to maintain insurance as required by the Loan Documents or the failure to timely pay insurance premiums for any such required insurance or real estate taxes for any Project; 

(f) any loss, damage, cost, expense, liability or obligation suffered or incurred by the Lenders out of or
on account of or based upon the failure to timely pay any valid real estate taxes for any Project which could create liens on any portion of any Project which would be superior to the lien or security title of the applicable Mortgage or the other
Loan Documents, to the full extent of the amount claimed by any such lien claimant; 
 (g) the
aggregate amount outstanding under the Loan Documents upon any Borrower or Guarantor (i) making a general assignment for the benefit of its creditors; (ii) filing a petition, answer or consent seeking, or having entered against it an order
for relief (or any similar remedy) under any provision of Title 11 of the United States Code or any other federal, state or foreign Law relating to insolvency, bankruptcy, rehabilitation, liquidation or reorganization, or consent to the
institution of any proceedings thereunder; (iii) convening a meeting of its creditors, or any class thereof, for the purpose of effecting a moratorium upon or extension or composition of its debts; (iv) admitting in writing that it is
generally not able to pay its debts as they mature; or (v) applying for a consent to the appointment of a receiver, trustee, custodian, liquidator or other similar official of all or a portion of its assets; 

(h) any loss, damage, cost, expense, liability or obligation suffered or incurred by the Lenders arising
out of, on account of, or in connection with the failure of any Project to be properly licensed by the applicable Governmental Authority for the operation of the Improvements as skilled nursing care facilities for the number of Available Beds as set
forth in the Loan Agreement; and 

  

			
	 GUARANTY AGREEMENT
	  	Page 2

 (i) any loss, damage, cost, expense, liability or obligation
suffered or incurred by the Lenders arising out of, on account of, or in connection with a distribution by any Borrower of Monthly Excess Cash Flow in violation of the provisions of the Loan Documents. 

All amounts due, debts, liabilities and payment obligations described in subsections (a) – (i) of this
Section 1 shall be hereinafter collectively referred to as the “Guaranteed Indebtedness.” 
 2. In the event of any default by Borrowers in the payment of the Guaranteed Indebtedness, after the expiration of any applicable cure or grace period, Guarantor agrees, on demand by Agent or the holder
of any Note, to pay the Guaranteed Indebtedness regardless of any defense, right of set-off or claims which any Borrower or Guarantor may have against Agent or any Lender or the holder of any Note. 

3. All of the remedies set forth herein and/or provided for in any of the Loan Documents or at law or equity shall be
equally available to Agent and the Lenders, and the choice by Agent or the Lenders of one such alternative over another shall not be subject to question or challenge by Guarantor or any other person, nor shall any such choice be asserted as a
defense, setoff, or failure to mitigate damages in any action, proceeding, or counteraction by Agent to recover or seeking any other remedy under this Guaranty, nor shall such choice preclude Agent from subsequently electing to exercise a different
remedy. The parties have agreed to the alternative remedies provided herein in part because they recognize that the choice of remedies in the event of a default hereunder will necessarily be and should properly be a matter of good faith business
judgment, which the passage of time and events may or may not prove to have been the best choice to maximize recovery by Agent and the Lenders at the lowest cost to Borrowers and/or Guarantor. It is the intention of the parties that such good faith
choice by Agent or any Lender be given conclusive effect regardless of such subsequent developments. 
 4.
Guarantor does hereby (a) waive notice of acceptance of this Guaranty by Agent and the Lenders and any and all notices and demands of every kind which may be required to be given by any statute, rule or law, (b) agree to refrain from
asserting, until after repayment in full of the Loan, any defense, right of set-off or other claim which Guarantor may have against any Borrower, (c) waive any defense, right of set-off or other claim which Guarantor or any Borrower may have
against any Agent, any Lender, or the holder of any Note, (d) waive any and all rights Guarantor may have under any anti-deficiency statute or other similar protections, (e) waive presentment for payment, demand for payment, notice of
nonpayment or dishonor, protest and notice of protest, diligence in collection and any and all formalities which otherwise might be legally required to charge Guarantor with liability, and (f) waive any failure by Agent or any Lender to inform
Guarantor of any facts Agent or any Lender may now or hereafter know about any Borrower, any Project, the Loan, or the transactions contemplated by the Loan Agreement, it being understood and agreed that neither Agent nor any Lender has any duty so
to inform and that Guarantor is fully responsible for being and remaining informed by Borrowers of all circumstances bearing on the risk of nonperformance of any Borrower’s obligations. Credit may be granted or continued from time to time by
the Lenders to any Borrower without notice to 

  

			
	 GUARANTY AGREEMENT
	  	Page 3

 
or authorization from Guarantor, regardless of the financial or other condition of such Borrower at the time of any such grant or continuation. Neither Agent nor any Lender shall have any
obligation to disclose or discuss with Guarantor its assessment of the financial condition of Borrower. Guarantor acknowledges that no representations of any kind whatsoever have been made by Agent or any Lender. No modification or waiver of any of
the provisions of this Guaranty shall be binding upon Agent or any Lender except as expressly set forth in a writing duly signed and delivered by Agent on behalf of the Lenders. 

5. Guarantor further agrees that Guarantor’s liability as guarantor shall in not be impaired or affected by any
renewals or extensions which may be made from time to time, with or without the knowledge or consent of Guarantor of the time for payment of interest or principal under the Notes or by any forbearance or delay in collecting interest or principal
under the Notes, or by any waiver by Agent or any Lender under the Loan Agreement, any Mortgage or any other Loan Documents, or by Agent’s or any Lender’s failure or election not to pursue any other remedies it may have against any
Borrower or Guarantor, or by any change or modification in any Note, the Loan Agreement, any Mortgage or any other Loan Document, or by the acceptance by Agent or any Lender of any additional security or any increase, substitution or change therein,
or by the release by Agent or any Lender of any security or any withdrawal thereof or decrease therein, or by the application of payments received from any source to the payment of any obligation other than the Guaranteed Indebtedness even though
Agent or any Lender might lawfully have elected to apply such payments to any part or all of the Guaranteed Indebtedness, it being the intent hereof that, subject to Agent’s and the Lenders’ compliance with the terms of this Guaranty,
Guarantor shall remain liable for the payment of the Guaranteed Indebtedness, until the Guaranteed Indebtedness has been paid in full, notwithstanding any act or thing which might otherwise operate as a legal or equitable discharge of a surety.
Guarantor further understands and agrees that Agent and the Lenders may at any time enter into agreements with Borrowers to amend and modify the Notes, the Loan Agreement, the Mortgages or other Loan Documents, and may waive or release any provision
or provisions of the Notes, the Loan Agreement, the Mortgages and other Loan Documents or any thereof, and, with reference to such instruments, may make and enter into any such agreement or agreements as Agent, the Lenders and Borrowers may deem
proper and desirable, without in any manner impairing or affecting this Guaranty or any of Agent’s or Lenders’ rights hereunder or Guarantor’s obligations hereunder. 

6. This is an absolute, present and continuing guaranty of payment and not of collection. Guarantor agrees that this
Guaranty may be enforced by Agent on behalf of the Lenders without the necessity at any time of resorting to or exhausting any other security or collateral given in connection herewith or with the Notes, the Loan Agreement, any Mortgage or any of
the other Loan Documents through foreclosure or sale proceedings, as the case may be, under any Mortgage or otherwise, or resorting to any other guaranties, and Guarantor hereby waives any right to require Agent or any Lender to join any Borrower in
any action brought hereunder or to commence any action against or obtain any judgment against any Borrower or to pursue any other remedy or enforce any other right. Guarantor further agrees that nothing contained herein or otherwise shall prevent
Agent on behalf of the Lenders from pursuing concurrently or successively all rights and remedies available to it at law and/or in equity or under the Notes, the Loan Agreement, any Mortgage or any other Loan Documents, and the exercise of any of
its rights or the completion of any of its remedies shall not constitute a discharge of Guarantor’s obligations hereunder, it being the purpose and intent of Guarantor that 

  

			
	 GUARANTY AGREEMENT
	  	Page 4

 
the obligations of Guarantor hereunder shall be absolute, independent and unconditional under any and all circumstances whatsoever. None of Guarantor’s obligations under this Guaranty or any
remedy for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever by any impairment, modification, change, release or limitation of the liability of any Borrower under the Notes, the Loan Agreement, any
Mortgage or other Loan Documents or by reason of the bankruptcy of any Borrower or by reason of any creditor or bankruptcy proceeding instituted by or against any Borrower. This Guaranty shall continue to be effective or be reinstated (as the case
may be) if at any time payment of all or any part of any sum payable pursuant to the Notes, the Loan Agreement, any Mortgage or any other Loan Document is rescinded or otherwise required to be returned by Agent or any Lender upon the insolvency,
bankruptcy, dissolution, liquidation, or reorganization of any Borrower, or upon or as a result of the appointment of a receiver, intervenor, custodian or conservator of or trustee or similar officer for, any Borrower or any substantial part of its
property, or otherwise, all as though such payment to Agent or such Lender had not been made, regardless of whether Agent or such Lender contested the order requiring the return of such payment. In the event of the foreclosure of the Mortgage and of
a deficiency, Guarantor hereby promises and agrees forthwith to pay the amount of such deficiency notwithstanding the fact that recovery of said deficiency against Borrowers would not be allowed by applicable law; however, the foregoing shall not be
deemed to require that Agent on behalf of the Lenders institute foreclosure proceedings or otherwise resort to or exhaust any other collateral or security prior to or concurrently with enforcing this Guaranty. 

7. In the event any Lender or any holder of any Note shall assign any Note to any lender or other entity to secure a loan
from such lender or other entity to any Lender or such holder for an amount not in excess of the amount which will be due, from time to time, from Borrowers to any Lender under such Note with interest not in excess of the rate of interest which is
payable by Borrowers under such Note, Guarantor will accord full recognition thereto and agree that all rights and remedies of such Lender or such holder hereunder shall be enforceable against Guarantor by such lender or other entity with the same
force and effect and to the same extent as would have been enforceable by such lender or such holder but for such assignment; provided, however, that unless Agent shall otherwise consent in writing, Agent shall have an unimpaired right, prior and
superior to that of its assignee or transferee, to enforce this Guaranty for Lender’s benefit to the extent any portion of the Guaranteed Indebtedness or any interest therein is not assigned or transferred. 

8. If: (a) this Guaranty is placed in the hands of an attorney for collection or is collected through any legal
proceeding; (b) an attorney is retained to represent Agent or any Lender in any bankruptcy, reorganization, receivership, or other proceedings affecting creditors’ rights and involving a claim under this Guaranty; (c) an attorney is
retained to provide advice to Agent or any Lender or other representative of Agent or any other Lender in any proceedings whatsoever in connection with this Guaranty and Agent or such Lender prevails in such proceedings, then Guarantor shall pay to
Agent or such Lender upon demand all reasonable attorney’s fees, costs and expenses incurred in connection therewith (all of which are referred to herein as “Enforcement Costs”), in addition to all other amounts due hereunder,
regardless of whether all or a portion of such Enforcement Costs are incurred in a single proceeding brought to enforce this Guaranty as well as the other Loan Documents. 

  

			
	 GUARANTY AGREEMENT
	  	Page 5

 9. The parties hereto intend and believe that each provision in this
Guaranty comports with all applicable local, state and federal laws and judicial decisions. However, if any provision or provisions, or if any portion of any provision or provisions, in this Guaranty is found by a court of law to be in violation of
any applicable local, state or federal ordinance, statute, law, administrative or judicial decision, or public policy, and if such court should declare such portion, provision or provisions of this Guaranty to be illegal, invalid, unlawful, void or
unenforceable as written, then it is the intent of all parties hereto that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this Guaranty
shall be construed as if such illegal, invalid, unlawful, void or unenforceable portion, provision or provisions were not contained therein, and that the rights, obligations and interest of Agent and the Lenders under the remainder of this Guaranty
shall continue in full force and effect. 
 10. TO THE GREATEST EXTENT PERMITTED BY LAW, GUARANTOR
HEREBY WAIVES ANY AND ALL RIGHTS TO REQUIRE MARSHALLING OF ASSETS BY AGENT. WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS RELATING TO THIS GUARANTY (EACH, A “PROCEEDING”), AGENT (BY ITS ACCEPTANCE HEREOF) AND GUARANTOR IRREVOCABLY
(A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS HAVING JURISDICTION IN THE CITY OF CLEVELAND AND STATE OF OHIO, AND (B) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY
PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY.
NOTHING IN THIS GUARANTY SHALL PRECLUDE AGENT FROM BRINGING A PROCEEDING IN ANY OTHER JURISDICTION NOR WILL THE BRINGING OF A PROCEEDING IN ANY ONE OR MORE JURISDICTIONS PRECLUDE THE BRINGING OF A PROCEEDING IN ANY OTHER JURISDICTION. AGENT AND
GUARANTOR FURTHER AGREE AND CONSENT THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY PROCEEDING IN ANY OHIO STATE OR UNITED STATES COURT SITTING IN THE CITY OF CLEVELAND AND MAY
BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE APPLICABLE PARTY AT THE ADDRESS INDICATED BELOW, AND SERVICE SO MADE SHALL BE COMPLETE UPON RECEIPT; EXCEPT THAT IF SUCH PARTY SHALL REFUSE TO ACCEPT DELIVERY,
SERVICE SHALL BE DEEMED COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED. 
 11. Any
indebtedness of Borrower to Guarantor now or hereafter existing is hereby subordinated to the payment of the Guaranteed Indebtedness. Guarantor agrees that, until the entire Guaranteed Indebtedness has been paid in full, Guarantor will not seek,
accept, or retain for its own account, any payment from Borrower on account of such subordinated debt. Any payments to Guarantor on account of such subordinated debt shall be collected and received by Guarantor in trust for the Lenders and shall be
paid over to Agent for the benefit of the Lenders on account of the Guaranteed Indebtedness without impairing or releasing the obligations of Guarantor hereunder. 

  

			
	 GUARANTY AGREEMENT
	  	Page 6

 12. Any amounts received by the Lenders from any source on account of the
Loan may be utilized by the Lenders for the payment of the Guaranteed Indebtedness and any other obligations of any Borrower to the Lenders in such order as the Lenders may from time to time elect. Additionally, if the Guaranteed Indebtedness
guaranteed hereby is less than the full indebtedness evidenced by the Notes, all rents, proceeds and avails of each Project, including proceeds of realization of the Lenders’ collateral, shall be deemed applied on the Guaranteed Indebtedness of
Borrowers to the Lenders that is not guaranteed by Guarantor until such unguaranteed indebtedness of Borrowers to the Lenders has been fully repaid before being applied upon the Guaranteed Indebtedness guaranteed by Guarantor. 

13. GUARANTOR AND AGENT (BY ITS ACCEPTANCE HEREOF) HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO OR ARISING FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS GUARANTY AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A COURT AND NOT BEFORE A JURY. 
 14. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be in writing and shall be deemed to have been properly given (a) if hand delivered, when delivered; (b) if mailed by United States Certified Mail (postage prepaid, return
receipt requested), three Business Days after mailing (c) if by Federal Express or other reliable overnight courier service, on the next Business Day after delivered to such courier service or (d) if by telecopier on the day of
transmission so long as copy is sent on the same day by overnight courier as set forth below: 
  

			
	 Guarantor:
	 	 CNL Healthcare Properties, Inc.

450 South Orange Avenue
 Orlando, Florida
32801
 Attention:     Joseph T. Johnson, Senior Vice President and Chief Financial Officer

Attention:     Holly J. Greer, Esq., Senior Vice President and General Counsel
 Telephone:   (407) 540-7500
 Facsimile:    (407)
540-2544

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

Attention:     Peter L. Lopez, Esq.
 Telephone:   (407) 843-4600
 Facsimile:    (407)
843-4444

  

			
	 GUARANTY AGREEMENT
	  	Page 7

			
	 Agent:
	 	 KeyBank National Association
 Mailcode: OH-01-51-0311
 4910 Tiedeman Road, 3rd Floor

Brooklyn, Ohio 44144
 Attention:     Amy L. MacLearie, KREC Commercial Loan Closer-Assistant Vice President
 Telephone:    (216) 813-6935

Facsimile:     (216) 357-6383

		
	 With a copy to:
	 	 Alfred G. Kyle, Esq.
 Bracewell & Giuliani LLP
 1445 Ross Avenue, Suite 3800

Dallas, Texas 75202
 Telephone:    (214) 758-1660
 Facsimile:
    (214) 758-8360

 or at such other address as the party to be served with notice may have furnished in writing to the party
seeking or desiring to serve notice as a place for the service of notice. 
 15. In order to induce the Lenders
to make the Loan, Guarantor makes the following representations and warranties to the Agent for the benefit of the Lender set forth in this Section. Guarantor acknowledges that but for the truth and accuracy of the matters covered by the following
representations and warranties, the Lenders would not have agreed to make the Loan: 
 (a)
Guarantor is duly formed, validly existing, and in good standing in its state of organization and has qualified to do business and is in good standing in any state in which it is necessary in the conduct of its business; 

(b) Guarantor maintains an office at the address set forth for such party in Section 14;

 (c) Any and all balance sheets, net worth statements, and other financial data with respect to
Guarantor which have heretofore been given to Agent or any Lender by or on behalf of Guarantor fairly and accurately present the financial condition of Guarantor in all material respects as of the respective dates thereof; 

(d) The execution, delivery, and performance by Guarantor of this Guaranty does not and will not
contravene or conflict with (i) any Laws, order, rule, regulation, writ, injunction or decree now in effect of any Government Authority, or court having jurisdiction over Guarantor, (ii) any contractual restriction binding on or affecting
Guarantor or Guarantor’s property or assets which may adversely affect Guarantor’s ability to fulfill its obligations under this Guaranty, (iii) the instruments creating any trust holding title to any assets included in
Guarantor’s financial statements, or (iv) the organizational documents of Guarantor; 

(e) This Guaranty creates legal, valid, and binding obligations of Guarantor enforceable in accordance
with its terms; 

  

			
	 GUARANTY AGREEMENT
	  	Page 8

 (f) there is no action, proceeding, or investigation pending
or, to the knowledge of Guarantor, threatened or affecting Guarantor, which may adversely affect Guarantor’s ability to fulfill its material obligations under this Guaranty. There are no judgments or orders for the payment of money rendered
against Guarantor for an amount in excess of $100,000 which have been undischarged for a period of ten (10) or more consecutive days or the enforcement of which is not stayed by reason of a pending appeal or otherwise. Guarantor is not in
default under any agreements which may adversely affect Guarantor’s ability to fulfill its obligations under this Guaranty; 
 (g) All statements set forth in the Recitals are true and correct; and 
 (h) For purposes of this Section 15(h), the “Company” shall mean the Guarantor. 
 (i) No Person owns more than 10% of the Equity Shares. The Articles of Amendment and Restatement of the Company dated June 8, 2011, as amended (the “Articles of Incorporation”) provide that
no Person shall Beneficially Own shares of any class or series of Equity Shares in excess of, with respect to each such class or series, 9.8% (by number or value) of the outstanding shares of such Equity Shares. 

(ii) The Articles of Incorporation provide that a majority of the Board of Directors will be Independent
Directors, except for a period of 90 days after the death, removal, or resignation of an Independent Director. Independent Directors shall nominate replacements for vacancies in the Independent Director positions and no other Person has the right to
nominate such replacements. 
 (iii) The Articles of Incorporation provide that the Board of
Directors are responsible for setting the general policies of the Company and for the general supervision of its business; however, the Board Directors may, at their option, appoint, employ, or contract with any Person as an Advisor and may grant or
delegate such authority to the Advisor as the Board of Directors may, in their sole discretion, deem necessary or desirable. The term or retention of any Advisor shall not exceed one (1) year, although there is no limit to the number of times
and terms that a particular Advisor may be retained. 
 (iv) As of the date of this Guaranty, the
Company has retained CNL Healthcare Corp., a Florida corporation, as its current Advisor. 
 (v)
The Company’s stated investment objectives in the Articles of Incorporation are to invest in diversified portfolio of assets that will allow the Company to pay attractive and steady cash dividends, preserve, protect and grow the Invested
Capital, and explore liquidity options in the future, including the sale of either the Company or the Company’s Assets, potential merger opportunities, or the Listing of Common Shares. The Independent Directors are required to review the
investment policies of the Company with sufficient frequency and at least annually to determine that the policies being followed by the Company are in the best interest of its stockholders. 

  

			
	 GUARANTY AGREEMENT
	  	Page 9

 (vi) The Company’s funds will at all times be kept
separate and apart from any Affiliated entity or the Advisor. 
 (vii) The proceeds of the Loan,
or assets purchased with such proceeds, will not be transferred to any of the following Persons: CHT Acworth GA Owner, LLC, a Delaware limited liability company; CHT Harborchase Assisted Living Owner, LLC, a Delaware limited liability company;
Cypress Dallas, LP, a Texas limited partnership; CLP Moline IL Assisted Living Owner, LLC, a Delaware limited liability company; CLP Moline IL Memory Care Owner, LLC, a Delaware limited liability company; CLP Carson City NV Owner, LLC, a Delaware
limited liability company; CLP Godfrey IL Owner, LLC, a Delaware limited liability company; and CLP Laurel Creek GA Owner, LLC, a Delaware limited liability company (collectively, the “Non-Company Related Entities”), other than in a bona
fide arm’s length transaction where the proceeds are used to acquire property, goods, or services. 
 (viii) The source of repayment of the Loan is separate from and unrelated to the sources of repayment on the following loans from Synovus Bank, a Lender, to the Non-Company Related Entities:
$15,073,041.00 loan to CHT Acworth GA Owner, LLC, a Delaware limited liability company; $17,328,027 loan to CHT Harborchase Assisted Living Owner, LLC, a Delaware limited liability company; $22,500,000.00 loan to Cypress Dallas, LP, a Texas limited
partnership; and $30,000,000 loan to CLP Moline IL Assisted Living Owner, LLC, a Delaware limited liability company; CLP Moline IL Memory Care Owner, LLC, a Delaware limited liability company; CLP Carson City NV Owner, LLC, a Delaware limited
liability company; CLP Godfrey IL Owner, LLC, a Delaware limited liability company; and CLP Laurel Creek GA Owner, LLC, a Delaware limited liability company. 

(ix) Borrowers do not control, are not controlled by, or are not under common control with any of the
Non-Company Related Entities. For purposes of this Section 15(h)(ix), Borrowers are deemed to “control” Non-Company Related Entities if they, directly or indirectly, or acting through or in concert with one or more persons:
(A) own, control, or have the power to vote ten (10%) percent or more of any class of voting securities of a Non-Company Related Entity; (B) control in any manner the election of a majority of the directors of a Non-Company Related
Entity; or (C) have the power to exercise a controlling influence over the management or policies of a Non-Company Related Entity. 
 For purposes of this Section 15(h), the terms “Advisor,” Affiliated,” “Assets,” “Beneficially Own,” “Common Shares,” “Equity Shares,”
“Independent Directors,” “Invested Capital,” “Listing,” “Person” and “Real Estate” shall have the meaning given such terms in the Articles of Incorporation. 

  

			
	 GUARANTY AGREEMENT
	  	Page 10

 All of the foregoing representations and warranties shall be deemed remade on the date of
the first disbursement of Loan proceeds, on the date of each advance of Loan proceeds, and upon any extension of the Loan pursuant to the Loan Agreement. Guarantor hereby agrees to indemnify and hold Agent and each Lender free and harmless from and
against all loss, cost, liability, damage, and expense, including reasonable attorney’s fees and costs, which Agent or any Lender may sustain by reason of the inaccuracy or breach of any of the foregoing representations and warranties as of the
date the foregoing representations and warranties are made and are remade. 
 16. Guarantor shall deliver or
cause to be delivered to Agent all of the Guarantor financial statements to be delivered in accordance with the terms of the Loan Agreement. 
 17. This Guaranty shall be binding upon the heirs, executors, legal and personal representatives, successors and assigns of Guarantor. 

18. THIS GUARANTY, THE NOTE, AND ALL OTHER INSTRUMENTS EVIDENCING AND SECURING THE LOAN SECURED HEREBY WERE
NEGOTIATED IN THE STATE OF OHIO, AND DELIVERED BY GUARANTOR OR BORROWER, AS APPLICABLE, AND ACCEPTED BY AGENT IN THE STATE OF OHIO, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND THE UNDERLYING TRANSACTIONS EMBODIED
HEREBY. IN ALL RESPECTS, INCLUDING, WITHOUT LIMITATION, MATTERS OF CONSTRUCTION OF THE IMPROVEMENTS AND PERFORMANCE OF THIS GUARANTY AND THE OBLIGATIONS ARISING HEREUNDER, THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF OHIO APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. 
 19. The Lenders shall be entitled to honor any request for Loan proceeds made by Borrower and shall have no obligation to see to the proper disposition of such advances. Guarantor agrees that its
obligations hereunder shall not be released or affected by reason of any improper disposition by Borrowers of such Loan proceeds. 
 20. This Guaranty may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument. 

  

			
	 GUARANTY AGREEMENT
	  	Page 11

 IN WITNESS WHEREOF, Guarantor has delivered this Guaranty in the State of
Ohio as of the date first written above. 
  

			
	GUARANTOR:
	
	 CNL HEALTHCARE PROPERTIES, INC.,
 a Maryland corporation

		
	By:	 	/s/ Steven M. Wortman
		 	Steven M. Wortman, Senior Vice President

  

			
	 GUARANTY AGREEMENT
	  	Page 12Assignment Securiy Agreement

 Exhibit 10.5 
 ARKANSAS MORTGAGE, 
 ABSOLUTE ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND

 FIXTURE FILING (INCLUDES FUTURE ADVANCES) 
 MADE BY 
 CHP BATESVILLE HEALTHCARE OWNER, LLC, 

a Delaware limited liability company 
 as Mortgagor 
 to 

KEYBANK NATIONAL ASSOCIATION, 
 as Agent, for the benefit of the Lenders, 
 as Mortgagee 

 
  

Dated as of: May 31, 2013 
 PREPARED BY AND UPON RECORDATION RETURN TO: 
 Bracewell & Giuliani LLP

 1445 Ross Avenue, Suite 3800 
 Dallas, Texas 75202-2711 
 Attention: Alfred G. Kyle, Esq. 

 ARKANSAS MORTGAGE, 

ABSOLUTE ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND 
 FIXTURE FILING (INCLUDES FUTURE ADVANCES) 
 Project Commonly Known As

 “Batesville Health Care Center” 

THIS ARKANSAS MORTGAGE, ABSOLUTE ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this “Mortgage”)
is made as of May 31, 2013, by CHP BATESVILLE HEALTHCARE OWNER, LLC, a Delaware limited liability company (“Mortgagor”) whose address is /o CNL Healthcare Properties, Inc., 450 South Orange Ave., Orlando, Florida 32801, in
favor KEYBANK NATIONAL ASSOCIATION, a national banking association, its successors and assigns, as administrative agent for the benefit of the Lenders (“Mortgagee”), whose address is 4910 Tiedeman Road, 3rd Floor, Brooklyn, Ohio
44144. 
  

	1.	 Grant and Secured Obligations. 

1.1 Grant. For the purpose of securing payment and performance of the Secured Obligations defined and described in
Section 1.2 below, Mortgagor hereby irrevocably and unconditionally grants, bargains, sells, conveys, mortgages and warrants to Mortgagee, with power of sale and with right of entry and possession, all estate, right, title and interest
which Mortgagor now has or may later acquire in and to the following property (all or any part of such property, or any interest in all or any part of it, as the context may require, the “Property”): 

(a) the real estate situated in Independence County, Arkansas, which is more particularly described in
Exhibit A attached hereto and made a part hereof for all purposes the same as if set forth herein verbatim, together with all right, title and interest of Mortgagor in and to (i) all streets, roads, alleys, easements, rights-of-way,
licenses, rights of ingress and egress, vehicle parking rights and public places, existing or proposed, abutting, adjacent, used in connection with or pertaining to the real property or the Improvements (as hereinafter defined); (ii) any strips
or gores between the real property and abutting or adjacent properties; and (iii) all water and water rights, timber, crops and mineral interests pertaining to the real property (such real estate and other rights, titles and interests being
hereinafter sometimes called the “Land”); 
 (b) all buildings, structures and
other improvements (such buildings, structures and other improvements being hereinafter sometimes called the “Improvements”) now or hereafter situated on the Land; 

(c) all fixtures, under Ark. Code Ann. §§ 4-9-313 and 4-9-401 et seq., or similar
statute, whether now or hereinafter enacted, equipment, systems, machinery, furniture, furnishings, inventory, goods, building and construction materials, supplies, and articles of personal property, of every kind and character, now owned or
hereafter acquired by Mortgagor, which are now or hereafter attached to or situated in, on or about the Land or the Improvements, or used in or necessary to the complete and proper planning, development, use, occupancy or operation thereof, or
acquired (whether 

  

			
	 MORTGAGE
	  	Page 1

 
delivered to the Land or stored elsewhere) for use or installation in or on the Land or the Improvements, and all renewals and replacements of, substitutions for and additions to the foregoing,
including, but without limiting the foregoing, any and all fixtures, equipment, machinery, systems, facilities and apparatus for heating, ventilating, air conditioning, refrigerating, plumbing, sewer, lighting, generating, cleaning, storage,
incinerating, waste disposal, sprinkler, fire extinguishing, communications, transportation (of people or things, including, but not limited to, stairways, elevators, escalators and conveyors), data processing, security and alarm, laundry, food or
drink preparation, storage or serving, gas, electrical and electronic, water, and recreational uses or purposes; all tanks, pipes, wiring, conduits, ducts, doors, partitions, rugs and other floor coverings, wall coverings, windows, drapes, window
screens and shades, awnings, fans, motors, engines and boilers; and decorative items and art objects (all of which are herein sometimes referred to together, as the “Accessories”); 

(d) all (i) plans and specifications for the Improvements; (ii) contracts relating to the Land,
or the Improvements or the Accessories or any part thereof, including, without limitation, any and all operations transfer or other similar agreements; (iii) deposits, (including, but not limited to, Mortgagor’s rights in tenants’
security deposits, deposits with respect to utility services to the Land, or the Improvements or the Accessories or any part thereof, and any deposits or reserves hereunder or under any other Loan Document (as hereinafter defined) for taxes,
insurance or otherwise, funds, accounts, contract rights, instruments, documents, commitments, general intangibles (including, but not limited to, trademarks, trade names and symbols), notes, and chattel paper used in connection with or arising from
or by virtue of any transactions related to the Land, or the Improvements or the Accessories or any part thereof; (iv) permits, licenses, franchises, certificates and other rights and privileges obtained in connection with the Land, or the
Improvements or the Accessories or any part thereof; (v) leases, rents, royalties, bonuses, issues, profits, revenues and other benefits of the Land, the Improvements and the Accessories; and (vi) other properties, rights, titles and
interests, if any, specified in any Section or any Article of this Mortgage as being part of the Property; and 
 (e) all (i) proceeds of or arising from the properties, rights, titles and interests referred to above in paragraphs (a), (b), (c) and (d), including, but not limited to, proceeds of any sale,
lease or other disposition thereof, proceeds of each policy of insurance relating thereto (including premium refunds), proceeds of the taking thereof or of any rights appurtenant thereto by eminent domain or sale in lieu thereof for public or
quasi-public use under any law, and proceeds arising out of any damage thereto whether caused by such a taking (including change of grade of streets, curb cuts or other rights of access) or otherwise caused; and (ii) other interests of every
kind and character, and proceeds thereof, which Mortgagor now has or hereafter acquires in, to or for the benefit of the properties, rights, titles and interests referred to above in paragraphs (a), (b), (c) and (d) and all property used
or useful in connection therewith, including, but not limited to, remainders, reversions and reversionary rights or interests. In the event the estate of Mortgagor in and to any of the Property is a leasehold estate, this conveyance shall include,
and the lien and security interest created hereby shall encumber and extend to, all other further or additional title, estates, interest or rights which may exist now or at any 

  

			
	 MORTGAGE
	  	Page 2

 
time be acquired by Mortgagor in or to the property demised under the lease creating such leasehold estate and including Mortgagor’s rights, if any, to the property demised under such lease
and, if fee simple title to any of such property shall ever become vested in Mortgagor such fee simple interest shall be encumbered by this Mortgage in the same manner as if Mortgagor had fee simple title to said property as of the date of execution
hereof. 
 TO HAVE AND TO HOLD the Property, unto Mortgagee and Mortgagee’s successors, substitutes or
assigns, for the uses and purposes herein set forth, forever, together with all rights, privileges, hereditaments and appurtenances in anywise appertaining or belonging thereto, subject only to the Permitted Exceptions (herein so called) listed on
Exhibit B attached hereto (to the extent that the same are valid, subsisting and affect the Property), and Mortgagor, for Mortgagor and Mortgagor’s successors, hereby agrees to warrant and forever defend, all and singular, the Property
unto Mortgagee and Mortgagee’s successors or substitutes against the claim or claims of all persons claiming or to claim the same or any part thereof, subject, however, as aforesaid. 

Capitalized terms used above and elsewhere in this Mortgage without definition have the meanings given them in the Loan
Agreement referred to in Subsection 1.2(a)(iii) below. 
 1.2     Secured
Obligations. 
 (a) Mortgagor makes the grant, conveyance, and mortgage set forth in
Section 1.1 above, and grants the security interest set forth in Section 3 below for the purpose of securing the following obligations (the “Secured Obligations”) in any order of priority that Mortgagee may choose:

 (i) Payment of all obligations at any time owing under one or more promissory notes (the
“Notes”) bearing even date herewith, payable by Borrowers as maker in the aggregate principal amount of Thirty Million and No/100 Dollars ($30,000,000.00) to the order of each Lender; and 

(ii) Payment and performance of all obligations of Mortgagor under this Mortgage; and 

(iii) Payment and performance of all obligations of Borrowers under a Secured Loan Agreement bearing even
date herewith among Mortgagor, the other Borrowers, Mortgagee and the Lenders (the “Loan Agreement”); and 
 (iv) Payment and performance of any obligations of Borrowers under any Loan Documents which are executed by Borrowers or any one of them; and 

(v) Payment and performance of all future advances and other obligations that Mortgagor or any successor
in ownership of all or part of the Property may agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of the Lenders, when a writing evidences the parties’ agreement that the advance or obligation be secured by
this Mortgage; and 

  

			
	 MORTGAGE
	  	Page 3

 (vi) Payment and performance of all modifications,
amendments, extensions, and renewals, however evidenced, of any of the Secured Obligations. 

(b) All persons who may have or acquire an interest in all or any part of the Property will be considered
to have notice of, and will be bound by, the terms of the Secured Obligations and each other agreement or instrument made or entered into in connection with each of the Secured Obligations. Such terms include any provisions in the Note or the Loan
Agreement which permit borrowing, repayment and reborrowing, or which provide that the interest rate on one or more of the Secured Obligations may vary from time to time. 
 2. Assignment of Rents. 
 2.1 Assignment.
Mortgagor hereby irrevocably, absolutely, presently and unconditionally assigns to Mortgagee all of Mortgagor’s right, title and interest in and to all rents, royalties, issues, profits, revenue, income, accounts, proceeds and other benefits of
the Property, whether now due, past due or to become due, including all prepaid rents and security deposits (some or all collectively, as the context may require, “Rents”). This is an absolute assignment, not an assignment for security
only. 
 2.2 Grant of License. Mortgagee hereby confers upon Mortgagor a license
(“License”) to collect and retain the Rents as they become due and payable, so long as no Event of Default, as defined in Section 6.2 below, shall exist and be continuing. If an Event of Default has occurred and is continuing,
Mortgagee shall have the right, which it may choose to exercise in its sole discretion, to terminate this License upon notice to Mortgagor, and without regard to the adequacy of Mortgagee’s security under this Mortgage. 

2.3 Collection and Application of Rents. Subject to the License granted to Mortgagor under Section 2.2
above, Mortgagee has the right, power and authority to collect any and all Rents. Mortgagor hereby appoints Mortgagee its attorney-in-fact to perform any and all of the following acts, if and at the times when Mortgagee in its sole discretion may so
choose while an Event of Default is ongoing: 
 (a) Demand, receive and enforce payment of any
and all Rents; or 
 (b) Give receipts, releases and satisfactions for any and all Rents; or

 (c) Sue either in the name of Mortgagor or in the name of Mortgagee for any and all Rents.

 Mortgagee and Mortgagor agree that the mere recordation of the assignment granted herein entitles Mortgagee immediately to
collect and receive rents upon the occurrence of an Event of Default, as defined in Section 6.2, without first taking any acts of enforcement under applicable law, such as, but not limited to, providing notice to Mortgagor, filing
foreclosure proceedings, or seeking and/or obtaining the appointment of a receiver. Further, Mortgagee’s right to the Rents does not depend on whether or not Mortgagee takes possession of the Property as permitted under Subsection
6.3(c). In Mortgagee’s sole discretion, Mortgagee may choose to collect Rents either with or without taking possession of the Property. Mortgagee shall apply all Rents 

  

			
	 MORTGAGE
	  	Page 4

 
collected by it in the manner provided under Section 6.6. If an Event of Default occurs while Mortgagee is in possession of all or part of the Property and is collecting and applying
Rents as permitted under this Mortgage, Mortgagee and any receiver shall nevertheless be entitled to exercise and invoke every right and remedy afforded any of them under this Mortgage and at law or in equity. 

2.4 Mortgagee Not Responsible. Under no circumstances shall Mortgagee have any duty to produce Rents from the
Property. Regardless of whether or not Mortgagee, in person or by agent, takes actual possession of the Land and Improvements, unless Mortgagee agrees in writing to the contrary, Mortgagee is not and shall not be deemed to be: 

(a) A “Mortgagee in possession” for any purpose; or 

(b) Responsible for performing any of the obligations of the lessor under any lease; or 

(c) Responsible for any waste committed by lessees or any other parties, any dangerous or defective
condition of the Property, or any negligence in the management, upkeep, repair or control of the Property; or 
 (d) Liable in any manner for the Property or the use, occupancy, enjoyment or operation of all or any part of it. 
 Notwithstanding the foregoing, however, Mortgagee shall not be exculpated for its gross negligence or willful misconduct. 

2.5 Leasing. Mortgagor shall not accept any deposit or prepayment of rents under the leases for any rental period
exceeding one (1) month without Mortgagee’s prior written consent. Mortgagor shall not lease the Property or any part of it except strictly in accordance with the Loan Agreement. 
 3. Grant of Security Interest. 
 3.1 Security
Agreement. The parties intend for this Mortgage to create a lien on the Property, and an absolute assignment of the Rents, all in favor of Mortgagee. The parties acknowledge that some of the Property and some or all of the Rents may be
determined under applicable law to be personal property or fixtures. To the extent that any Property or Rents may be or be determined to be personal property, Mortgagor as debtor hereby grants Mortgagee as secured party a security interest in all
such Property and Rents, to secure payment and performance of the Secured Obligations. This Mortgage constitutes a security agreement under the Uniform Commercial Code of the State in which the Property is located, covering all such Property and
Rents. 
 3.2 Financing Statements. Mortgagor shall execute one or more financing statements and such
other documents as Mortgagee may from time to time reasonably require to perfect or continue the perfection of Mortgagee’s security interest in any Property or Rents. As provided in Section 5.9 below, Mortgagor shall pay all
reasonable fees and costs that Mortgagee may incur in filing such documents in public offices and in obtaining such record searches as Mortgagee 

  

			
	 MORTGAGE
	  	Page 5

 
may reasonably require. In case Mortgagor fails to execute any financing statements or other documents for the perfection or continuation of any security interest, Mortgagor hereby appoints
Mortgagee as its true and lawful attorney-in-fact to execute any such documents on its behalf. If any financing statement or other document is filed in the records normally pertaining to personal property, that filing shall never be construed as in
any way derogating from or impairing this Mortgage or the rights or obligations of the parties under it. 
 4. Fixture Filing.

 This Mortgage constitutes a financing statement filed as a fixture filing under Article 9 of the Uniform
Commercial Code in the State in which the Property is located, as amended or recodified from time to time, covering any Property which now is or later may become fixtures attached to the Land or Improvements. For this purpose, the respective
addresses of Mortgagor, as debtor, and Mortgagee, as secured party, are as set forth in the preambles of this Mortgage. 
 5. Rights and
Duties of the Parties. 
 5.1 Representations and Warranties. Mortgagor represents and warrants
that: 
 (a) Subject to the Batesville Permitted Exceptions, Mortgagor lawfully possesses and
holds fee simple title to all of the Land and Improvements; 
 (b) Mortgagor has good and
marketable title to all Property other than the Land and Improvements; 
 (c) Mortgagor has the
full and unlimited power, right and authority to encumber the Property and assign the Rents; 

(d) This Mortgage creates a first and prior lien on the Property; 

(e) The Property includes all property and rights which may be reasonably necessary or desirable to
promote the present and contemplated future beneficial use and enjoyment of the Land and Improvements; 
 (f) Mortgagor owns any Property which is personal property free and clear of any security agreements, reservations of title or conditional sales contracts, and there is no financing statement affecting
such personal property on file in any public office; and 
 (g) Mortgagor’s place of
business, or its chief executive office if it has more than one place of business, is located at the address specified below. 
 5.2 Taxes, and Assessments. Mortgagor shall, or shall cause the Batesville Operator to, prior to delinquency, pay all taxes, levies, charges and assessments, in accordance with the Loan Agreement.

 5.3 Performance of Secured Obligations. Mortgagor shall promptly pay and perform each Secured
Obligation in accordance with its terms. 

  

			
	 MORTGAGE
	  	Page 6

 5.4 Liens, Charges and Encumbrances. Mortgagor shall, or shall cause
the Batesville Operator to, immediately discharge any lien on the Property which Mortgagee has not consented to in writing. Mortgagee has not consented and will not consent to any contract or to any work or to the furnishing of any materials which
might be deemed to create a lien or liens superior to the lien of this instrument, either under Ark. Code Ann. §18-44-110, or otherwise, unless by signed, recorded writing, which consent Mortgagee may refuse to give in its sole and absolute
discretion. 
 5.5 Damages and Insurance and Condemnation Proceeds. In the event of any casualty or
condemnation of the Property, the provisions of Article 15 of the Loan Agreement shall govern. 
 5.6
Maintenance and Preservation of Property. 
 (a) Mortgagor shall, or shall cause the
Batesville Operator to, insure the Property as required by the Loan Agreement and keep the Property in good condition and repair. 
 (b) Mortgagor shall not remove or demolish the Property or any part of it, or alter, restore or add to the Property, or initiate or allow any change in any zoning or other land use classification which
affects the Property or any part of it, except as permitted or required by the Loan Agreement or with Mortgagee’s express prior written consent in each instance. 

(c) If all or part of the Property becomes damaged or destroyed, Mortgagor shall, or shall cause the
Batesville Operator to, promptly and completely repair and/or restore the Property in a good and workmanlike manner in accordance with sound building practices, regardless of whether or not Mortgagee agrees to disburse Proceeds or other sums to pay
costs of the work of repair or reconstruction under the Loan Agreement. 
 (d) Mortgagor shall
not commit or allow any act upon or use of the Property which would violate: (i) any applicable Laws or order of any Governmental Authority, whether now existing or later to be enacted and whether foreseen or unforeseen; or (ii) any public
or private covenant, condition, restriction or equitable servitude affecting the Property. Mortgagor shall not bring or keep any article on the Property or cause or allow any condition to exist on it, if that could invalidate or would be prohibited
by any insurance coverage required to be maintained by Mortgagor on the Property or any part of it under the Loan Agreement. 
 (e) Mortgagor shall not commit or allow waste of the Property, including those acts or omissions characterized under the Loan Agreement as waste which arises out of Hazardous Material. 

(f) Mortgagor shall, or shall cause the Batesville Operator to, perform all other acts which from the
character or use of the Property may be reasonably necessary to maintain and preserve its value. 

  

			
	 MORTGAGE
	  	Page 7

 5.7 Releases, Extensions, Modifications and Additional Security. From
time to time, Mortgagee may perform any of the following acts without incurring any liability or giving notice to any person: 
 (a) Release any person liable for payment of any Secured Obligation; 
 (b) Extend the time for payment, or otherwise alter the terms of payment, of any Secured Obligation; 

(c) Accept additional real or personal property of any kind as security for any Secured Obligation,
whether evidenced by deeds of trust, mortgages, security agreements or any other instruments of security; 
 (d) Alter, substitute, or release any property securing the Secured Obligations; 
 (e) Consent to the making of any plat or map of the Property or any part of it; 
 (f) Join in granting any easement or creating any restriction affecting the Property; 
 (g) Join in any subordination or other agreement affecting this Mortgage or the lien of it; or 
 (h) Release the Property or any part of it. 
 5.8 Release.
When all of the Secured Obligations have been paid in full and all fees and other sums owed by Mortgagor under Section 5.9 of this Mortgage and the other Loan Documents have been received, Mortgagee shall release this Mortgage, the lien
created thereby, and all notes and instruments evidencing the Secured Obligations. Mortgagor shall pay any costs of preparation and recordation of such release. 

5.9 Compensation, Exculpation, Indemnification. 

(a) Mortgagor agrees to pay fees in the maximum amounts legally permitted, or reasonable fees as may be
charged by Mortgagee when the law provides no maximum limit, for any reasonable services that Mortgagee may render in connection with this Mortgage, including providing a statement of the Secured Obligations or providing the release pursuant to
Section 5.8 above. Mortgagor shall also pay or reimburse all of Mortgagee’s reasonable costs and expenses which may be incurred in rendering any such services. Mortgagor further agrees to pay or reimburse Mortgagee for all
reasonable costs, expenses and other advances which may be incurred or made by Mortgagee in any efforts to enforce any terms of this Mortgage, including any rights or remedies afforded to Mortgagee under Section 6.3, whether any lawsuit
is filed or not, or in defending any action or proceeding arising under or relating to this Mortgage, including reasonable attorneys’ fees and other legal costs, costs of any Foreclosure Sale (as defined in Subsection 6.3(i) below) and
any cost of evidence of title. If Mortgagee, as required by applicable law, chooses to dispose of Property through more than one Foreclosure Sale, Mortgagor shall pay all reasonable costs, expenses or other advances that may be incurred or made by
Mortgagee in each of such Foreclosure Sales. 

  

			
	 MORTGAGE
	  	Page 8

 (b) Mortgagee shall not be directly or indirectly liable to
Mortgagor or any other person as a consequence of any of the following: 
 (i) Mortgagee’s
exercise of or failure to exercise any rights, remedies or powers granted to Mortgagee in this Mortgage; 
 (ii) Mortgagee’s failure or refusal to perform or discharge any obligation or liability of Mortgagor under any agreement related to the Property or under this Mortgage; or 

(iii) Any loss sustained by Mortgagor or any third party resulting from Mortgagee’s failure to lease
the Property, or from any other act or omission of Mortgagee in managing the Property, after an Event of Default, unless the loss is caused by the gross negligence or willful misconduct of Mortgagee. 

Mortgagor hereby expressly waives and releases all liability of the types described above, and agrees that no such
liability shall be asserted against or imposed upon Mortgagee. 
 (c) EXCEPT AS CAUSED BY THE
GROSS NEGLIGENCE AND OR WILLFUL MISCONDUCT OF MORTGAGEE (IT BEING THE INTENT OF THE PARTIES THAT THIS INDEMNIFICATION SHALL COVER THE NEGLIGENCE OF SUCH PARTIES), MORTGAGOR AGREES TO INDEMNIFY MORTGAGEE AGAINST AND HOLD THEM HARMLESS FROM ALL
LOSSES, DAMAGES, LIABILITIES, CLAIMS, CAUSES OF ACTION, JUDGMENTS, COURT COSTS, ATTORNEYS’ FEES AND OTHER LEGAL EXPENSES, COST OF EVIDENCE OF TITLE, COST OF EVIDENCE OF VALUE, AND OTHER COSTS AND EXPENSES WHICH THEY MAY SUFFER OR INCUR:

 (i) IN PERFORMING ANY ACT REQUIRED OR PERMITTED BY THIS MORTGAGE OR ANY OF THE OTHER LOAN
DOCUMENTS OR BY LAW; 
 (ii) BECAUSE OF ANY FAILURE OF MORTGAGOR TO PERFORM ANY OF ITS
OBLIGATIONS; OR 
 (iii) BECAUSE OF ANY ALLEGED OBLIGATION OF OR UNDERTAKING BY MORTGAGEE TO
PERFORM OR DISCHARGE ANY OF THE REPRESENTATIONS, WARRANTIES, CONDITIONS, COVENANTS OR OTHER OBLIGATIONS IN ANY DOCUMENT RELATING TO THE PROPERTY OTHER THAN THE LOAN DOCUMENTS. 

THIS AGREEMENT BY MORTGAGOR TO INDEMNIFY MORTGAGEE SHALL SURVIVE THE RELEASE AND CANCELLATION OF ANY OR ALL OF THE
SECURED OBLIGATIONS AND THE FULL OR PARTIAL RELEASE OF THIS MORTGAGE. 

  

			
	 MORTGAGE
	  	Page 9

 (d) Mortgagor shall pay all obligations to pay money arising
under this Section 5.9 immediately upon demand by Mortgagee. Each such obligation shall be added to, and considered to be part of, the principal of the Note, and shall bear interest from the date the obligation arises at the Default
Rate. 
 5.10 Defense and Notice of Claims and Actions. At Mortgagor’s sole expense, Mortgagor shall
protect, preserve and defend the Property and title to and right of possession of the Property, and the security of this Mortgage and the rights and powers of Mortgagee created under it, against all adverse claims. Mortgagor shall give Mortgagee
prompt notice in writing if any claim is asserted which does or could affect any such matters, or if any action or proceeding is commenced which alleges or relates to any such claim. 

5.11 Subrogation. Mortgagee shall be subrogated to the liens of all encumbrances, whether released of record or
not, which are discharged in whole or in part by Mortgagee in accordance with this Mortgage or with the proceeds of any loan secured by this Mortgage. 
 5.12 Site Visits, Observation and Testing. Mortgagee and its agents and representatives shall have the right at any reasonable time to enter and visit the Property for the purpose of performing
appraisals, observing the Property, taking and removing soil or groundwater samples, and conducting tests on any part of the Property. Mortgagee has no duty, however, to visit or observe the Property or to conduct tests, and no site visit,
observation or testing by Mortgagee, its agents or representatives shall impose any liability on any of Mortgagee, its agents or representatives. In no event shall any site visit, observation or testing by Mortgagee, its agents or representatives be
a representation that Hazardous Material are or are not present in, on or under the Property, or that there has been or shall be compliance with any law, regulation or ordinance pertaining to Hazardous Material or any other applicable governmental
law. Neither Mortgagor nor any other party is entitled to rely on any site visit, observation or testing by any of Mortgagee, its agents or representatives. Neither Mortgagee, its agents or representatives owe any duty of care to protect Mortgagor
or any other party against, or to inform Mortgagor or any other party of, any Hazardous Material or any other adverse condition affecting the Property. Mortgagee shall give Mortgagor reasonable notice before entering or visiting the Property.
Mortgagee shall make reasonable efforts to avoid interfering with Mortgagor’s or the Batesville Operator’s use of the Property in exercising any rights provided in this Section 5.12. 

5.13 Notice of Change. Mortgagor shall give Mortgagee prior written notice of any change in: (a) the location
of its place of business or its chief executive office if it has more than one place of business; (b) the location of any of the Property, including the Books and Records; and (c) Mortgagor’s name or business structure. Unless
otherwise approved by Mortgagee in writing, all Property that consists of personal property (other than the Books and Records) will be located on the Land and all Books and Records will be located at Mortgagor’s place of business or chief
executive office if Mortgagor has more than one place of business. 

  

			
	 MORTGAGE
	  	Page 10

 6. Accelerating Transfers, Default and Remedies. 

6.1 Accelerating Transfers. 

(a) “Accelerating Transfer” means any Transfer not expressly permitted under Article 12
of the Loan Agreement. 
 (b) Mortgagor acknowledges that Mortgagee is making one or more
advances under the Loan Agreement in reliance on the expertise, skill and experience of Mortgagor; thus, the Secured Obligations include material elements similar in nature to a personal service contract. In consideration of Mortgagee’s
reliance, Mortgagor agrees that Mortgagor shall not make any Accelerating Transfer, unless the transfer is preceded by Mortgagee’s express written consent to the particular transaction and transferee. Mortgagee may withhold such consent in its
sole discretion. If any Accelerating Transfer occurs, Mortgagee in its sole discretion may declare all of the Secured Obligations to be immediately due and payable, and Mortgagee may invoke any rights and remedies provided by Section 6.3
of this Mortgage. 
 6.2 Events of Default. Mortgagor will be in default under this Mortgage upon the
occurrence of any one or more of the following events (some or all collectively, “Events of Default;” any one singly, an “Event of Default”). 

(a) Failure of Mortgagor (i) (x) to pay any of the principal or interest of the Loan within ten
(10) days after the date when due or (y) to observe or perform any of the other covenants or conditions by Mortgagor to be performed under the terms of this Mortgage or any of the other Loan Documents concerning the payment of money for a
period of ten (10) days after written notice from Mortgagee that the same is due and payable; or (ii) for a period of thirty (30) days after written notice from Mortgagee, to observe or perform any non-monetary covenant or condition
contained in this Mortgage or any of the other Loan Documents; provided that if any such failure concerning a non-monetary covenant or condition is susceptible to cure but cannot reasonably be cured within said thirty (30) day period, then
Mortgagor shall have an additional sixty (60) day period to cure such failure and no Event of Default shall be deemed to exist hereunder so long as Mortgagor commences such cure within the initial thirty (30) day period and diligently and
in good faith pursues such cure to completion within such resulting ninety (90) day period from the date of Mortgagee’s notice; or 
 (b) An “Event of Default” occurs under the Loan Agreement or any other Loan Document. 
 6.3 Remedies. At any time after an Event of Default, Mortgagee shall be entitled to invoke any and all of the rights and remedies described below, in addition to all other rights and remedies
available to Mortgagee at law or in equity. All of such rights and remedies shall be cumulative, and the exercise of any one or more of them shall not constitute an election of remedies. 

(a) Acceleration. Mortgagee may declare any or all of the Secured Obligations to be due and payable
immediately. 

  

			
	 MORTGAGE
	  	Page 11

 (b) Receiver. Mortgagee shall, as a matter of right,
without notice and without giving bond to Mortgagor or anyone claiming by, under or through Mortgagor, and without regard for the solvency or insolvency of Mortgagor or the then value of the Property, to the extent permitted by applicable law, be
entitled to have a receiver appointed for all or any part of the Property and the Rents, and the proceeds, issues and profits thereof, with the rights and powers referenced below and such other rights and powers as the court making such appointment
shall confer, and Mortgagor hereby consents to the appointment of such receiver and shall not oppose any such appointment. Such receiver shall have all powers and duties prescribed by applicable law, all other powers which are necessary or usual in
such cases for the protection, possession, control, management and operation of the Property, and such rights and powers as Mortgagee would have, upon entering and taking possession of the Property under subsection (c) below. 

(c) Entry. Mortgagee, in person, by agent or by court-appointed receiver, may enter, take
possession of, manage and operate all or any part of the Property, and may also do any and all other things in connection with those actions that Mortgagee may in its sole discretion consider necessary and appropriate to protect the security of this
Mortgage. Such other things may include: taking and possessing all of Mortgagor’s or the then owner’s Books and Records; entering into, enforcing, modifying or canceling leases on such terms and conditions as provided in such leases and as
Mortgagee may consider proper; obtaining and evicting tenants and fixing or modifying Rents, subject to the terms of each tenant’s respective lease; collecting and receiving any payment of money owing to Mortgagee; completing any unfinished
construction; and/or contracting for and making repairs and alterations. If Mortgagee so requests, Mortgagor shall assemble all of the Property that has been removed from the Land and make all of it available to Mortgagee at the site of the Land.
Mortgagor hereby irrevocably constitutes and appoints Mortgagee as Mortgagor’s attorney-in-fact to perform such acts and execute such documents as Mortgagee in its sole discretion may consider to be appropriate in connection with taking these
measures, including endorsement of Mortgagor’s name on any instruments. 
 (d) Cure;
Protection of Security. Mortgagee may cure any breach or default of Mortgagor, and if it chooses to do so in connection with any such cure, Mortgagee may also enter the Property and/or do any and all other things which it may in its sole
discretion consider necessary and appropriate to protect the security of this Mortgage, including, without limitation, completing construction of the improvements at the Property contemplated by the Loan Agreement. Such other things may include:
appearing in and/or defending any action or proceeding which purports to affect the security of, or the rights or powers of Mortgagee under, this Mortgage; paying, purchasing, contesting or compromising any encumbrance, charge, lien or claim of lien
which in Mortgagee’s sole judgment is or may be senior in priority to this Mortgage, such judgment of Mortgagee or to be conclusive as among the parties to this Mortgage; obtaining insurance and/or paying any premiums or charges for insurance
required to be carried under the Loan Agreement; otherwise caring for and protecting any and all of the Property; and/or employing counsel, accountants, contractors and other appropriate persons to assist Mortgagee. Mortgagee may take any of the
actions permitted under this Subsection 6.3(d) either with or without giving notice to any person. Any amounts expended by Mortgagee under this Subsection 6.3(d) shall be secured by this Mortgage. 

  

			
	 MORTGAGE
	  	Page 12

 (e) Uniform Commercial Code Remedies. Mortgagee may
exercise any or all of the remedies granted to a secured party under the Uniform Commercial Code in the State in which the Property is located. 
 (f) Foreclosure; Lawsuits. Mortgagee shall have the right, in one or several concurrent or consecutive proceedings, to foreclose the lien hereof upon the Property or any part thereof, for the
Secured Obligations, or any part thereof, by any proceedings appropriate under applicable law. Mortgagee or its nominee may bid and become the purchaser of all or any part of the Property at any foreclosure or other sale hereunder, and the amount of
Mortgagee’s successful bid shall be credited on the Secured Obligations. Without limiting the foregoing, Mortgagee may proceed by a suit or suits in law or equity, whether for specific performance of any covenant or agreement herein contained
or in aid of the execution of any power herein granted, or for any foreclosure under the judgment or decree of any court of competent jurisdiction. 

(g) Other Remedies. Mortgagee may exercise all rights and remedies contained in any other
instrument, document, agreement or other writing heretofore, concurrently or in the future executed by Mortgagor or any other person or entity in favor of Mortgagee in connection with the Secured Obligations or any part thereof, without prejudice to
the right of Mortgagee thereafter to enforce any appropriate remedy against Mortgagor. Mortgagee shall have the right to pursue all remedies afforded to a “mortgagee” under applicable law, and shall have the benefit of all of the
provisions of such applicable law, including all amendments thereto which may become effective from time to time after the date hereof. 
 (h) Sale of Personal Property. Mortgagee, as required by applicable law, shall have the discretionary right to cause some or all of the Property, which constitutes personal property, to be sold or
otherwise disposed of in any combination and in any manner permitted by applicable law. 
 (i)
For purposes of this power of sale, Mortgagee, as required by applicable law, may elect to treat as personal property any Property which is intangible or which can be severed from the Land or Improvements without causing structural damage. If it
chooses to do so, Mortgagee, as required by applicable law, may dispose of any personal property, in any manner permitted by Article 9 of the Uniform Commercial Code of the State in which the Property is located, including any public or private
sale, or in any manner permitted by any other applicable law. 
 (ii) In connection with any sale
or other disposition of such Property, Mortgagor agrees that the following procedures constitute a commercially reasonable sale: Mortgagee shall mail written notice of the sale to Mortgagor not later than thirty (30) days prior to such sale.
Mortgagee will publish notice of the sale in a local daily newspaper of general circulation. Upon receipt of any written 

  

			
	 MORTGAGE
	  	Page 13

 
request, Mortgagee will make the Property available to any bona fide prospective purchaser for inspection during reasonable business hours. Notwithstanding, Mortgagee shall be under no obligation
to consummate a sale if, in its judgment, none of the offers received by it equals the fair value of the Property offered for sale. The foregoing procedures do not constitute the only procedures that may be commercially reasonable. 

(i) Foreclosure Sales. Mortgagee may proceed with foreclosure under the power of sale (a
“Foreclosure Sale”) which is hereby conferred, such foreclosure to be accomplished in accordance with the following provisions: 
 (i) Mortgagee is hereby authorized and empowered to sell the Property or any part thereof, with or without having taken possession of same. Any such sale (including notice thereof) shall comply with the
applicable requirements governing sales of Arkansas real property under powers of sale conferred by mortgages or deeds of trust. If there is no statute in force at the time of the sale governing sales of Arkansas real property under powers of sale
conferred by mortgages or deeds of trust, such sale shall comply with applicable law, at the time of the sale, governing sales of Arkansas real property under powers of sale conferred by mortgages or deeds of trust. 

(ii) In addition to the rights and powers of sale granted under the preceding provisions of this
Subsection, if default is made in the payment of any installment of the Secured Obligations and such default continues beyond any applicable grace period, Mortgagee may, at Mortgagee’s option, at once or at any time thereafter while any matured
installment remains unpaid, without declaring the entire Secured Obligations to be due and payable, sell the Property subject to such unmatured indebtedness and to the rights, powers, liens, security interests and assignments securing or providing
recourse for payment of such unmatured indebtedness, in the same manner, all as provided in the preceding provisions of this Subsection. Sales made without maturing the Secured Obligations may be made hereunder whenever there is a default in the
payment of any installment of the Secured Obligations, without exhausting the power of sale granted hereby, and without affecting in any way the power of sale granted under this Subsection, the unmatured balance of the Secured Obligations or the
rights, powers, liens, security interests and assignments securing or providing recourse for payment of the Secured Obligations. 
 (iii) Sale of a part of the Property shall not exhaust the power of sale, but sales may be made from time to time until the Secured Obligations are paid and performed in full. It is intended by each of
the foregoing provisions of this Subsection that Mortgagee may sell not only the Land and the Improvements, but also the Accessories and other interests constituting a part of the Property or any part thereof, along with the Land and the
Improvements or any part thereof, as a unit and as a part of a single sale, or may sell any part of the Property separately from the remainder of the Property. It shall not be necessary to have present or to exhibit at any sale any of the Property.

  

			
	 MORTGAGE
	  	Page 14

 (iv) After any sale under this Subsection, Mortgagee shall
make good and sufficient deeds, assignments and other conveyances to the purchaser or purchasers thereunder in the name of Mortgagor, conveying the Property or any part thereof so sold to the purchaser or purchasers with general warranty of title by
Mortgagor. It is agreed that, in any deeds, assignments or other conveyances given by Mortgagee, any and all statements of fact or other recitals therein made as to the identity of Mortgagee, or as to the occurrence or existence of any Default, or
as to the acceleration of the maturity of the Secured Obligations, or as to the request to sell, notice of sale, time, place, terms and manner of sale, and receipt, distribution and application of the money realized therefrom, and, without being
limited by the foregoing, as to any other act or thing having been duly done by or on behalf of Mortgagee, shall be taken by all courts of law and equity as prima facie evidence that the said statements or recitals state facts and are without
further question to be so accepted, and Mortgagor does hereby ratify and confirm any and all acts that Mortgagee may lawfully do in the premises by virtue hereof. 

6.4 Credit Bids. At any Foreclosure Sale, any person, including Mortgagor or Mortgagee, may bid for and acquire
the Property or any part of it to the extent permitted by then applicable law. Instead of paying cash for such property, Mortgagee may settle for the purchase price by crediting the sales price of the property against the following obligations:

 (a) First, the portion of the Secured Obligations attributable to the expenses of sale, costs
of any action and any other sums for which Mortgagor is obligated to pay or reimburse Mortgagee under Section 5.9 of this Mortgage; and 

(b) Second, all other Secured Obligations in any order and proportions as Mortgagee in its sole discretion
may choose. 
 6.5 Application of Foreclosure Sale Proceeds. Mortgagee shall apply the proceeds of any
Foreclosure Sale in the following manner: 
 (a) First, to pay the portion of the Secured
Obligations attributable to the expenses of sale, costs of any action and any other sums for which Mortgagor is obligated to reimburse Mortgagee under Section 5.9 of this Mortgage; 

(b) Second, to pay the portion of the Secured Obligations attributable to any sums expended or advanced by
Mortgagee under the terms of this Mortgage which then remain unpaid; 
 (c) Third, to pay all
other Secured Obligations in any order and proportions as Mortgagee in its sole discretion may choose; and 
 (d) Fourth, to remit the remainder, if any, to the person or persons entitled to it by law. 
 6.6 Application of Rents and Other Sums. Mortgagee shall apply any and all Rents collected by it, and any and all sums other than proceeds of a Foreclosure Sale which Mortgagee may receive or
collect under Section 6.3 above, in the following manner: 
 (a) First, to pay the
portion of the Secured Obligations attributable to the costs and expenses of operation and collection that may be incurred by Mortgagee or any receiver; 

  

			
	 MORTGAGE
	  	Page 15

 (b) Second, to pay all other Secured Obligations in any
order and proportions as Mortgagee in its sole discretion may choose; and 
 (c) Third, to remit
the remainder, if any, to the person or persons entitled to it by law. 
 Mortgagee shall have no liability for any funds which
it does not actually receive. 
 7. The Mortgagee. 

7.1 Certain Rights. Mortgagee shall have the right to take any and all of the following actions: (i) to
select, employ and consult with counsel (who may be, but need not be, counsel for Mortgagee) upon any matters arising hereunder, including the preparation, execution and interpretation of the Loan Documents, and shall be fully protected in relying
as to legal matters on the advice of counsel, (ii) to execute any of the trusts and powers hereof and to perform any duty hereunder either directly or through his or her agents or attorneys, (iii) to select and employ, in and about the
execution of his or her duties hereunder, suitable accountants, engineers and other experts, agents and attorneys-in-fact, either corporate or individual, not regularly in the employ of Mortgagee (and Mortgagee shall not be answerable for any act,
default, negligence, or misconduct of any such accountant, engineer or other expert, agent or attorney-in-fact, if selected with reasonable care, or for any error of judgment or act done by Mortgagee in good faith, or be otherwise responsible or
accountable under any circumstances whatsoever, except for Mortgagee’s gross negligence or bad faith), and (iv) any and all other lawful action that Mortgagee may protect or enforce Mortgagee’s rights hereunder. Mortgagee shall not be
personally liable in case of entry by Mortgagee, or anyone entering by virtue of the powers herein granted to Mortgagee, upon the Land for debts contracted for or liability or damages incurred in the management or operation of the Land. Mortgagee
shall have the right to rely on any instrument, document, or signature authorizing or supporting any action taken or proposed to be taken by Mortgagee hereunder, believed by Mortgagee in good faith to be genuine. Mortgagee shall be entitled to
reimbursement for reasonable expenses incurred by Mortgagee in the performance of Mortgagee’s duties hereunder. Mortgagor will save and hold Mortgagee harmless against, any and all liability and expenses which may be incurred by Mortgagee in
the performance of Mortgagee’s duties. 
 7.2 Retention of Money. All moneys received by Mortgagee
shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, and shall be segregated from any other moneys of Mortgagee. 

7.3 Perfection of Appointment. Should any deed, conveyance, or instrument of any nature be required from Mortgagor
by Mortgagee to more fully and certainly vest in and confirm to Mortgagee such estates, rights, powers, and duties, then, upon request by Mortgagee, any and all such deeds, conveyances and instruments shall be made, executed, acknowledged, and
delivered and shall be caused to be recorded and/or filed by Mortgagor. 

  

			
	 MORTGAGE
	  	Page 16

 7.4 No Representation by Mortgagee. By accepting or approving
anything required to be observed, performed, or fulfilled or to be given to Mortgagee pursuant to the Loan Documents, Mortgagee shall not be deemed to have warranted, consented to, or affirmed the sufficiency, legality, effectiveness or legal effect
of the same, or of any term, provision, or condition thereof, and such acceptance or approval thereof shall not be or constitute any warranty or affirmation with respect thereto by Mortgagee. 
 8. Miscellaneous Provisions. 
 8.1 Additional
Provisions. The Loan Documents fully state all of the terms and conditions of the parties’ agreement regarding the matters mentioned in or incidental to this Mortgage. The Loan Documents also grant further rights to Mortgagee and contain
further agreements and affirmative and negative covenants by Mortgagor which apply to this Mortgage and to the Property. 
 8.2 No Waiver or Cure. 
 (a) Each waiver by
Mortgagee must be in writing, and no waiver shall be construed as a continuing waiver. No waiver shall be implied from any delay or failure by Mortgagee to take action on account of any default of Mortgagor. Consent by Mortgagee to any act or
omission by Mortgagor shall not be construed as a consent to any other or subsequent act or omission or to waive the requirement for Mortgagee’s consent to be obtained in any future or other instance. 

(b) If any of the events described below occurs, that event alone shall not: cure or waive any breach,
Event of Default or notice of default under this Mortgage or invalidate any act performed pursuant to any such default or notice; or nullify the effect of any notice of default or sale (unless all Secured Obligations then due have been paid and
performed and all other defaults under the Loan Documents have been cured); or impair the security of this Mortgage; or prejudice Mortgagee or any receiver in the exercise of any right or remedy afforded any of them under this Mortgage; or be
construed as an affirmation by Mortgagee of any tenancy, lease or option, or a subordination of the lien of this Mortgage. 
 (i) Mortgagee, its agent or a receiver takes possession of all or any part of the Property in the manner provided in Subsection 6.3(c). 

(ii) Mortgagee collects and applies Rents as permitted under Sections 2.3 and 6.6
above, either with or without taking possession of all or any part of the Property. 
 (iii)
Mortgagee receives and applies to any Secured Obligation any proceeds of any Property, including any proceeds of insurance policies, condemnation awards, or other claims, property or rights assigned to Mortgagee under Section 5.5 above.

 (iv) Mortgagee makes a site visit, observes the Property and/or conducts tests as permitted
under Section 5.12 above. 

  

			
	 MORTGAGE
	  	Page 17

 (v) Mortgagee receives any sums under this Mortgage or any
proceeds of any collateral held for any of the Secured Obligations, and applies them to one or more Secured Obligations. 
 (vi) Mortgagee or any receiver invokes any right or remedy provided under this Mortgage. 
 8.3 Powers of Mortgagee. 
 (a) If Mortgagee
performs any act which it is empowered or authorized to perform under this Mortgage, including any act permitted by Section 5.7 or Subsection 6.3(d) of this Mortgage, that act alone shall not release or change the personal
liability of any person for the payment and performance of the Secured Obligations then outstanding, or the lien of this Mortgage on all or the remainder of the Property for full payment and performance of all outstanding Secured Obligations. The
liability of the original Mortgagor shall not be released or changed if Mortgagee grants any successor in interest to Mortgagor any extension of time for payment, or modification of the terms of payment, of any Secured Obligation. Mortgagee shall
not be required to comply with any demand by the original Mortgagor that Mortgagee refuse to grant such an extension or modification to, or commence proceedings against, any such successor in interest. 

(b) Mortgagee may take any of the actions in accordance with the terms of and permitted under
Subsections 6.3(b) and/or 6.3(c) regardless of the adequacy of the security for the Secured Obligations, or whether any or all of the Secured Obligations have been declared to be immediately due and payable, or whether notice of
default and election to sell has been given under this Mortgage. 
 (c) From time to time,
Mortgagee may apply to any court of competent jurisdiction for aid and direction in executing and enforcing the rights and remedies created under this Mortgage. Mortgagee may from time to time obtain orders or decrees directing, confirming or
approving acts in executing and enforcing these rights and remedies. 
 8.4 Merger. No merger shall occur
as a result of Mortgagee’s acquiring any other estate in or any other lien on the Property unless Mortgagee consents to a merger in writing. 
 8.5 Joint and Several Liability. If Mortgagor consists of more than one person, each shall be jointly and severally liable for the faithful performance of all of Mortgagor’s obligations under
this Mortgage. 
 8.6 Applicable Law. The creation, perfection and enforcement of the lien of this
Mortgage shall be governed by the law of the State in which the Property is located. Subject to the foregoing, in all other respects, this Mortgage shall be governed by the substantive laws of the State of Ohio. 

8.7 Successors in Interest. The terms, covenants and conditions of this Mortgage shall be binding upon and inure
to the benefit of the heirs, successors and assigns of the parties. However, this Section 8.7 does not waive the provisions of Section 6.1 above. 

  

			
	 MORTGAGE
	  	Page 18

 8.8 Interpretation. 

(a) Whenever the context requires, all words used in the singular will be construed to have been used in
the plural, and vice versa, and each gender will include any other gender. The captions of the sections of this Mortgage are for convenience only and do not define or limit any terms or provisions. The word “include(s)” means
“include(s), without limitation,” and the word “including” means “including, but not limited to.” 
 (b) The word “obligations” is used in its broadest and most comprehensive sense, and includes all primary, secondary, direct, indirect, fixed and contingent obligations. It further includes all
principal, interest, prepayment charges, late charges, loan fees and any other fees and charges accruing or assessed at any time, as well as all obligations to perform acts or satisfy conditions. 

(c) No listing of specific instances, items or matters in any way limits the scope or generality of any
language of this Mortgage. The Exhibits to this Mortgage are hereby incorporated in this Mortgage. 
 8.9
In-House Counsel Fees. Whenever Mortgagor is obligated to pay or reimburse Mortgagee for any attorneys’ fees, those fees shall include the allocated costs for services of in-house counsel. 

8.10 Waiver of Statutory Rights. To the extent permitted by law, Mortgagor hereby agrees that it shall not and
will not apply for or avail itself of any appraisement, valuation, stay, extension or exemption laws, or any so-called “Moratorium Laws,” now existing or hereafter enacted, in order to prevent or hinder the enforcement or foreclosure of
this Mortgage, but hereby waives the benefit of such laws. Mortgagor for itself and all who may claim through or under it waives any and all right to have the property and estates comprising the Property marshaled upon any foreclosure of the lien
hereof and agrees that any court having jurisdiction to foreclose such lien may order the Property sold as an entirety. Mortgagor hereby waives any and all rights of redemption from sale under any judgment of foreclosure of this Mortgage on behalf
of Mortgagor and on behalf of each and every person acquiring any interest in or title to the Property of any nature whatsoever, subsequent to the date of this Mortgage, including, particularly, all right of redemption under §18-49-106 of the
Arkansas Code Annotated. The foregoing waiver of right of redemption is made pursuant to the provisions of applicable law. 
 8.11 Severability. If any provision of this Mortgage should be held unenforceable or void, that provision shall be deemed severable from the remaining provisions and shall in no way affect the
validity of this Mortgage except that if such provision relates to the payment of any monetary sum, then Mortgagee may, at its option, declare all Secured Obligations immediately due and payable. 

8.12 Notices. Any notice, demand, request or other communication which any party hereto may be required or may
desire to give hereunder shall be in writing and shall be deemed to have been properly given (a) if hand delivered, when delivered; (b) if mailed by United States Certified Mail (postage prepaid, return receipt requested), three Business
Days after mailing (c)

  

			
	 MORTGAGE
	  	Page 19

 
if by Federal Express or other reliable overnight courier service, on the next Business Day after delivered to such courier service or (d) if by telecopier on the day of transmission so long
as copy is sent on the same day by overnight courier as set forth below: 
 If to Mortgagor: 

CHP Batesville Healthcare Owner, LLC 

c/o CNL Healthcare Properties, Inc. 

450 South Orange Avenue 
 Orlando, Florida 32801 
 Attention: Joseph T. Johnson, 

                  Senior Vice
President and Chief Financial Officer 
 Attention: Holly J. Greer, Esq., Senior Vice President and General
Counsel 
 Telephone: (407) 540-7500 

Facsimile: (407) 540-2544 
 With a copy to: 
 Lowndes Drosdick Doster Kantor &
Reed, P.A. 
 215 North Eola Drive 

Orlando, Florida 32801 
 Attention: Peter L. Lopez, Esq. 
 Telephone: (407) 843-4600

 Facsimile: (407) 843-4444 

If to Mortgagee: 
 KeyBank National Association 
 Mailcode: OH-01-51-0311 

4910 Tiedeman Road, 3rd Floor 
 Brooklyn, Ohio 44144 
 Attention: Amy L. MacLearie, 

                  KREC
Commercial Loan Closer-Assistant Vice President 
 Telephone: (216) 813-6935 

Facsimile: (216) 357-6383 
 With a copy to: 
 Alfred G. Kyle, Esq. 

Bracewell & Giuliani LLP 
 1445 Ross Avenue, Suite 3800 
 Dallas, Texas 75202 

Telephone: (214) 758-1660 
 Facsimile: (214) 758-8360 
 or at such other address as the party to be served
with notice may have furnished in writing to the party seeking or desiring to serve notice as a place for the service of notice. 
 8.13 Future Advances. The total amount of indebtedness secured hereby may increase or decrease from time to time, but the total unpaid principal balance of indebtedness secured hereby (including
disbursements that the Bank may, but shall not be obligated to, make under 

  

			
	 MORTGAGE
	  	Page 20

 
this Mortgage, the Loan Documents or any other document with respect thereto) at any one time outstanding may be substantially less but shall be limited to all indebtedness reasonably
contemplated by the parties for the Project as of the date hereof, including, without limitation, any disbursements made for the enforcement of this Mortgage and any remedies hereunder, payment of taxes, special assessments, utilities or insurance
on the Property and interest on such disbursements and all disbursements by Mortgagee pursuant to applicable law (all such indebtedness being hereinafter referred to as the maximum amount secured hereby). This Mortgage shall be valid and have
priority to the extent of the maximum amount secured hereby over all subsequent liens and encumbrances, including statutory liens, excepting solely taxes and assessments levied on the Property given priority by law, AND IT IS AGREED THAT THIS
MORTGAGE SHALL STAND AS SECURITY FOR ANY AND ALL FUTURE AND ADDITIONAL INDEBTEDNESS OF BORROWERS TO THE LENDERS, WHETHER IT BE INCURRED FOR ANY BUSINESS PURPOSE THAT WAS RELATED OR WHOLLY UNRELATED TO THE PURPOSE OF THE ORIGINAL LOAN, OR WHETHER IT
WAS INCURRED FOR SOME PERSONAL OR NONBUSINESS PURPOSE, OR FOR ANY OTHER PURPOSE RELATED OR UNRELATED, OR SIMILAR OR DISSIMILAR, TO THE PURPOSE OF THE ORIGINAL LOAN. 

8.14 Mortgagee’s Lien for Service Charge and Expenses. At all times, regardless of whether any Loan proceeds
have been disbursed, this Mortgage secures (in addition to any Loan proceeds disbursed from time to time) the payment of any and all loan commissions, service charges, liquidated damages, expenses and advances due to or incurred by Mortgagee not to
exceed the maximum amount secured hereby. 
 8.15 WAIVER OF TRIAL BY JURY. MORTGAGOR HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS MORTGAGE, THE NOTE, OR ANY OF THE OTHER LOAN DOCUMENTS, THE LOAN OR ANY OTHER STATEMENTS OR ACTIONS OF
MORTGAGOR OR MORTGAGEE. MORTGAGOR ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS MORTGAGE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS DISCUSSED THIS WAIVER WITH SUCH
LEGAL COUNSEL. MORTGAGOR FURTHER ACKNOWLEDGES THAT (i) IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER, (ii) THIS WAIVER IS A MATERIAL INDUCEMENT FOR MORTGAGEE TO MAKE THE LOAN, ENTER INTO THIS MORTGAGE AND EACH OF
THE OTHER LOAN DOCUMENTS, AND (iii) THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH OTHER LOAN DOCUMENTS AS IF FULLY INCORPORATED THEREIN. 
 8.16 Inconsistencies. In the event of any inconsistency between this Mortgage and the Loan Agreement, the terms hereof shall be controlling as necessary to create, preserve and/or maintain a valid
security interest upon the Property, otherwise the provisions of the Loan Agreement shall be controlling. 

  

			
	 MORTGAGE
	  	Page 21

 8.17 Controlling Agreement. The parties hereto intend to conform
strictly to the applicable usury laws. All agreements between Mortgagor (and any other party liable for any part of the Secured Obligations) and Mortgagee, whether now existing or hereafter arising and whether written or oral, are expressly limited
so that in no event whatsoever, whether by reason of acceleration of the maturity of the Secured Obligations or otherwise, shall the interest contracted for, charged or received by Mortgagee hereunder or otherwise exceed the maximum amount
permissible under applicable law. If from any circumstances whatsoever interest would otherwise be payable to Mortgagee in excess of the maximum lawful amount, the interest payable to Mortgagee shall be reduced automatically to the maximum amount
permitted under applicable law. If Mortgagee shall ever receive anything of value deemed interest under applicable law which would apart from this provision be in excess of the maximum lawful amount, the amount which would have been excessive
interest shall be applied to the reduction of the principal amount owing on the Secured Obligations in inverse order of maturity and not to the payment of interest, or if such amount which would have been excessive interest exceeds the unpaid
principal balance of the Secured Obligations, such excess shall be refunded to Mortgagor, or to the maker of the Note or other evidence of indebtedness if other than Mortgagor. All interest paid or agreed to be paid to Mortgagee shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term, including any renewal or extension, of such indebtedness so that the amount of interest on account of such indebtedness does not exceed the
maximum permitted by applicable law. The terms and provisions of this section shall control and supersede every other provision of all existing and future agreements between Mortgagor, the maker of the Note or other evidence of indebtedness if other
than Mortgagor, and Mortgagee. 
 THIS MORTGAGE, THE LOAN AGREEMENT, AND THE OTHER LOAN DOCUMENTS EMBODY THE
FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. The provisions hereof and the other Loan Documents may be amended or waived only
by an instrument in writing signed by the Mortgagor and Mortgagee. 
 [INTENTIONALLY BLANK] 

  

			
	 MORTGAGE
	  	Page 22

 IN WITNESS WHEREOF, Mortgagor has executed this Mortgage as of the date
first above written. 
  

			
	MORTGAGOR:
	
	CHP BATESVILLE HEALTHCARE OWNER, LLC, a Delaware limited liability company
		
	By:	 	/s/ Steven M. Wortman
		 	Steven M. Wortman, Senior Vice President

  

							
	STATE OF FLORIDA	  	 )
	  		  	
		  	)	  	         SS:
	  	
	COUNTY OF ORANGE        	  	)	  		  	

 The foregoing instrument was acknowledged before me this 24th day of May, 2013, by Steven M.
Wortman, Senior Vice President of CHP BATESVILLE HEALTHCARE OWNER, LLC, a Delaware limited liability company, on behalf of said limited liability company. He is personally known to me or has produced
                                         
    as identification. 
  

			
	
		
	Sign Name:	 	/s/ Tresa Bagwell
		 	Notary Public
		
	Print Name:	 	Tresa Bagwell

 
			
		
	Serial No. (if any):	 	 
	
	[NOTARIAL SEAL]

 My Commission Expires: August 23, 2013 

  

			
	 MORTGAGE
	  	Page 23

 EXHIBIT A 

Description of Land 
 [Intentionally Omitted] 
 EXHIBIT B 

Permitted Exceptions 
 [Intentionally Omitted]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]