Document:

EX-10.13

 Exhibit 10.13 

PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS 

(The Wellington, Salt Lake City, Utah; 

Cottonwood Creek, Salt Lake City, Utah; and 

The Charleston, Cedar Hills, Utah) 

THIS PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS (this “Agreement”) is made and entered into as of November 1, 2017 (the
“Effective Date”), by and between WELLINGTON MSL LLC, a Delaware limited liability company (“Wellington MSL”), COTTONWOOD CREEK MSL LLC, a Delaware limited liability company
(“Cottonwood MSL”) and CEDAR HILLS MSL LLC, a Delaware limited liability company (“Cedar Hills MSL,” and together with Wellington MSL and Cottonwood MSL, collectively,
“Sellers,” and each, a “Seller”), and SSSHT Acquisitions, LLC, a Delaware limited liability company (“Buyer” and, together with Sellers, collectively, the “Parties”). 

R E C I T A L S 

A.    Properties. Sellers desire to sell, and Buyer desires to buy, the Properties (as hereinafter defined),
including the buildings listed by property address on Exhibits A-1 through A-3 attached hereto (each a “Building” and
collectively, the “Buildings”). 
 B.    Purpose. The Parties are entering into this Agreement
in order, among other things, to provide a mechanism for Sellers to sell to Buyer, and Buyer to buy from Sellers, the Properties, all on the terms and subject to the conditions set forth herein. 

NOW, THEREFORE, in consideration of the mutual undertakings of the Parties hereto, it is hereby agreed as follows: 

ARTICLE I 
 DEFINITIONS 

1.    Certain Defined Terms. As used herein: 

1.1    “Anti-Money Laundering Laws” means the Executive Order, the Bank Secrecy Act (31
U.S.C. §§ 5311 et seq.), the Money Laundering Control Act of 1986 (18 U.S.C. §§ 1956 et seq.), the USA Patriot Act, and any applicable anti-money laundering law or regulation. 

1.2    “Business Day” means any day other than a Saturday, Sunday or federal or Utah state
holiday. 
 1.3    “Code” means the Internal Revenue Code of 1986, as amended, including effective date
and transition rules (whether or not codified), and any successor thereto. Any reference to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of succeeding law. 

  

					
		 		 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 1.4    “Due Diligence Period” shall mean the
period commencing on the Effective Date and ending at 5:00 p.m. local time at the Real Property (as hereinafter defined) on the earlier of (i) December 15, 2017 or (ii) the date that Buyer delivers an Approval Notice to Sellers. 

1.5    “Employee Expenses” shall mean gross Employee wages and salaries, incentive compensation,
commissions, workers’ compensation, sick pay, dues, vacation, pension and retirement payments (including any matching, profit sharing or other employer contributions to any defined contribution pension plan, any minimum funding contributions to
any defined benefit pension plan and any employer contributions to any multiemployer plan), deferred compensation, remuneration in any other form (including any type of employee benefit or insurance), and payroll taxes payable on any such Employee
compensation or remuneration. 
 1.6    “Employees” shall mean all employees working at the Projects,
including any administrator/executive director and other employees, including, but not limited to, accounting staff, clerical staff, managers, housekeepers, maintenance workers, food service workers, activity directors, and caregivers. 

1.7    “Environmental Laws” shall mean any and all applicable Laws, judgments and permits issued,
promulgated or entered into by any Governmental Authority, relating to the environment, preservation or reclamation of natural resources, or to the management, release or threatened release of Hazardous Materials, including the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq. (“CERCLA”), the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901, et seq., the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 U.S.C. §§1251 et seq., the Clean Air Act of 1970, as amended, 42 U.S.C.
§§7401 et seq., the Toxic Substances Control Act of 1976, 15 U.S.C. §§2601 et seq., the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §§651 et seq., the
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§11001 et seq., the Safe Drinking Water Act of 1974, as amended, 42 U.S.C.
§§300(f) et seq., the Hazardous Materials Transportation Act, 49 U.S.C. §§1801 et seq., and any similar or implementing state or local law, and all amendments or regulations promulgated under any of
the foregoing. 
 1.8    “Escrow Agent” shall mean Commonwealth Land Title Insurance Company,
through its offices at 4100 Newport Place Dr., Suite 120, Newport Beach, CA 90017, Attention: Kelly Ralph. 

1.9    “Excluded
Contracts” shall mean contracts to which any Seller is a party and relating to the Properties for: (i) insurance; (ii) the engagement of attorneys, accountants, brokers, surveyors, title
companies, environmental consultants, engineers or appraisers; (iii) the Existing Management Agreements; (iv) those certain agreements listed on Schedule 1.9 which are division wide contracts and (v) any other contracts or
agreements entered into after the Effective Date in accordance with the terms of this Agreement and that such Seller shall cause to be terminated at or prior to the Closing. 

  

					
		 	2	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 1.10    “Existing Management Agreement” shall
mean each of (a) that certain Management Agreement, dated as of May 6, 2011, between Manager and Wellington MSL, (b) that certain Management Agreement, dated as of May 6, 2011, between Manager and Cottonwood MSL and (c) that
certain Management Agreement, dated as of May 6, 2011, between Manager and Cedar Hills MSL (collectively, the “Existing Management Agreements”). 

1.11    “Governmental Authority” means any federal, state or local government or other political
subdivision thereof, including any Person exercising executive, legislative, judicial, regulatory or administrative governmental powers or functions, in each case to the extent the same has jurisdiction over the Person or property in question. 

1.12    “Government Healthcare Program” means Medicaid, Medicare or any other Federal or
Utah state or local county healthcare program applicable to the operation of any Property. 

1.13    “Government Lists” shall mean the Specially Designated Nationals and Blocked Persons List
maintained by OFAC, as such list is maintained from time to time or any other similar list maintained by the United States Department of State, the United States Department of Commerce. 

1.14    “Hazardous Materials” means any material, substance or waste that is listed, classified,
regulated, characterized or otherwise defined as “hazardous,” “toxic,” “radioactive,” (or words of similar intent or meaning) under applicable Environmental Law, including but not limited to petroleum, petroleum by-products, asbestos or asbestos-containing material, urea formaldehyde insulation, toxic mold, polychlorinated biphenyls, flammable or explosive substances, or pesticides. 

1.15    “Laws” shall mean any binding domestic or foreign laws, statutes, ordinances, rules, resolutions,
regulations, codes or executive orders enacted, issued, adopted, promulgated, applied, or hereinafter imposed by any Governmental Authority, including building, zoning and environmental protection, as to the use, occupancy, rental, management,
ownership, subdivision, development, conversion or redevelopment of any Property. 

1.16    “Liability” shall mean any liability, obligation, damage, loss, diminution in value, cost or
expense of any kind or nature whatsoever, whether accrued or unaccrued, actual or contingent, known or unknown, foreseen or unforeseen. 

1.17    “Liens” shall mean any liens, mortgages, deeds of trust, pledges, security interests or other
encumbrances securing any debt or obligation. 
 1.18    “Manager” shall mean MSL Community Management
LLC, a California limited liability company. 
 1.19    “MSL Parties” shall mean each Seller and
their respective partners, stockholders, members, direct and indirect owners, officers, directors, employees and agents. 

  

					
		 	3	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 1.20    “OFAC” shall mean the Office of Foreign Assets
Control, United States Department of the Treasury, or any other office, agency or department that succeeds to the duties of the Office of Foreign Assets Control, United States Department of the Treasury. 

1.21    “OFAC Laws” means lists, laws, rules, sanctions and regulations maintained by OFAC
pursuant to any authorizing statute, executive order or regulations, as amended from time to time. 

1.22    “Person” means any natural person, corporation, general or limited partnership, limited liability
company, association, joint venture, trust, estate, Governmental Authority or other legal entity, in each case whether in its own or a representative capacity. 

1.23    “Project” means each senior living community operated and conducted by the applicable Seller at
the applicable Property (collectively, the “Projects”) 
 1.24    “Title
Company” shall mean Commonwealth Land Title Insurance Company, through its offices at 888 S. Figueroa Street, Suite 2100, Los Angeles, CA 90017, Attention: Mai-Ly Marsh. 

1.25    The following terms have the meanings set forth in the following Sections: 

 

			
	 Term
	  	Section
	 “Accountants”
	  	Section 10.2.9
	 “Agreed Repair Item”
	  	Section 6.2.1
	 “Agreement”
	  	Preamble
	 “Allocated Purchase Price”
	  	Section 3.5
	 “Approval Notice”
	  	Section 6.4
	 “Bill of Sale”
	  	Section 7.2.1(b)
	 “Building”
	  	Recitals
	 “Buyer”
	  	Preamble
	 “Buyer Default”
	  	Section 13.2
	 “Buyer License”
	  	Section 10.1
	 “Buyer’s Inspectors”
	  	Section 6.2
	 “Buyer’s Title Objection Notice”
	  	Section 5.2.3
	 “Casualty”
	  	Section 9.1
	 “Casualty Notice”
	  	Section 9.1
	 “City”
	  	Section 14.15.3
	 “Closing”
	  	Section 7
	 “Closing Date”
	  	Section 7
	 “Closing Statements”
	  	Section 8.1
	 “Condemnation”
	  	Section 9.2
	 “Data Room”
	  	Section 6.1
	 “Deed”
	  	Section 7.2.1(a)
	 “Disapproval Notice”
	  	Section 6.4
	 “Deposit”
	  	Section 3.2
	 “Designated Representatives”
	  	Section 11.5.2

  

					
		 	4	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

			
	 Term
	  	Section
	 “Effective Date”
	  	Preamble
	 “Equipment Leases”
	  	Section 2.6
	 “Escrow Funds”
	  	Section 3.7
	 “Escrow Agreement”
	  	Section 3.7
	 “ERISA”
	  	Section 11.2.5
	 “Excluded Materials”
	  	Section 6.1
	 “Excluded Property”
	  	Section 2.9
	 “First Release Date”
	  	Section 3.7
	 “Form of New Management Agreement”
	  	Section 6.5
	 “HCP”
	  	Section 11.1.4
	 “Health Care Facility Licensing and Inspection Act”
	  	Section 10.1
	 “Improvements”
	  	Section 2.1
	 “Independent Consideration”
	  	Section 3.6
	 “Initial Deposit”
	  	Section 3.2
	 “Inspections”
	  	Section 6.2
	 “Intangible Property”
	  	Section 2.5
	 “Knowledge”
	  	Section 11.5.1
	 “Land”
	  	Section 2
	 “Leases”
	  	Section 2.3
	 “Manager License”
	  	Section 10.1
	 “Material Casualty”
	  	Section 9.1.1
	 “Material Condemnation”
	  	Section 9.2.1
	 “Medicaid Properties”
	  	Section 11.1.14
	 “Miscellaneous Assets”
	  	Section 2.8
	 “New Management Agreement”
	  	Section 6.5
	 “Operating Agreements”
	  	Section 2.7
	 “Owned Vehicles”
	  	Section 2.4
	 “Parcel”
	  	Section 2
	 “Parties”
	  	Preamble
	 “Permits”
	  	Section 11.1.13
	 “Permitted Exceptions”
	  	Section 5.2
	 “Preliminary Title Report”
	  	Section 5.1
	 “Program”
	  	Section 11.1.14
	 “Program Agreements”
	  	Section 11.1.14
	 “Properties”
	  	Section 2.8
	 “Property Information”
	  	Section 6
	 “Proprietary Marks”
	  	Section 2.9.4
	 “Purchase Price”
	  	Section 3.1
	 “Real Property”
	  	Section 2.1
	 “Rent Roll”
	  	Section 11.1.7
	 “Repair Lists”
	  	Section 6.2.1
	 “Representation Letter”
	  	Section 10.2.9
	 “Resident Agreements”
	  	Section 2.2
	 “SEC”
	  	Section 10.2.9

  

					
		 	5	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

			
	 Term
	  	Section
	 “Secondary Deposit”
	  	Section 3.2
	 “Second Release Date”
	  	Section 3.7
	 “Seller”
	  	Preamble
	 “Seller Default”
	  	Section 13.1
	 “Seller Repair Cost Cap”
	  	Section 6.2.1
	 “Sellers’ Broker”
	  	Section 14.1
	 “Survey”
	  	Section 5.1
	 “Survival Period”
	  	Section 11.3
	 “Tangible Personal Property”
	  	Section 2.4
	 “Tax Regulatory Agreements”
	  	Section 14.15.3
	 “Title Policy”
	  	Section 4.2.4
	 “UDHFLCRA”
	  	Section 10.1
	 “US Bank”
	  	Section 14.15.3

 ARTICLE II 

PROPERTIES 

2.    Properties. The applicable Seller owns the applicable parcel(s) of land (each, a “Parcel”)
more particularly described on Exhibits A-1 through A-3 attached hereto (collectively, the “Land”), which Land is
improved with the applicable Buildings indicated on Exhibits A-1 through A-3. Subject to the terms and conditions of this Agreement,
with respect to each Parcel, the applicable Seller agrees to sell to Buyer, and Buyer agrees to purchase from such Seller, the following: 

2.1    The “Real Property,” being the applicable Land, together with all improvements and fixtures
(other than fixtures, if any, that may be owned by residents pursuant to the Resident Agreements and tenants pursuant to the Leases) located thereon (the “Improvements”); all and singular the rights, benefits, privileges, easements,
tenements, hereditaments, and appurtenances thereon or in any way appertaining to such Land; and all right, title, and interest of such Seller in and to all strips and gores and any land lying in the bed of any street, road or alley, open or
proposed, adjoining such Land; 
 2.2    Such Seller’s interest in the “Resident
Agreements” being all resident agreements or other occupancy agreements affecting the applicable Improvements (other than Leases), including (i) any agreements titled “Assigned Living Residence and Services Agreement” and
(ii) resident agreements which may be made by such Seller after the date hereof and before the Closing Date as permitted by this Agreement, and any and all amendments and supplements thereto, and all guaranties and security, if any, received by
such Seller in connection therewith. All Resident Agreements in effect as of the Effective Date are listed on the Rent Roll; 

2.3    Such Seller’s interest in the “Leases” being all leases and subleases of space or other
occupancy agreements affecting the applicable Improvements (other than Resident Agreements), including leases or occupancy agreements which may be made by such Seller after the date hereof and before the Closing Date as permitted by this Agreement,
and any and all amendments and supplements thereto, and any and all guaranties and security received by such Seller in connection therewith. All Leases in effect as of the Effective Date are set forth on Schedule 2.3 attached hereto; 

  

					
		 	6	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 2.4    The “Tangible Personal Property,” being
all right, title and interest of such Seller, if any, in and to all tangible personal property now or hereafter located on, or used exclusively in connection with, the operation, ownership, maintenance, management, occupancy or improvement of the
applicable Real Property and the applicable Improvements, including without limitation: the applicable vehicles described on Schedule 2.4 (“Owned Vehicles”), and all other equipment, machinery, furniture, art work,
furnishings, office equipment and supplies stored onsite, including but not limited to food and beverages (including alcoholic beverages if the sale thereof to Buyer is allowed by state Law), but excluding cash and deposits, bonds or other security
(except as otherwise provided in this Article II); 
 2.5    The “Intangible Property,” being
all, right, title and interest of such Seller, if any, in and to all intangible personal property now or hereafter used exclusively in connection with the operation, ownership, maintenance, management, occupancy or improvement of the applicable Real
Property (to the extent assignable); the plans and specifications for the applicable Improvements (to the extent assignable); all applicable domain names, logos, designs, trademarks, service marks, trade names, and trade name registrations described
on Schedule 2.5, as well as all applicable goodwill relating thereto; all applicable warranties, indemnities, applications, vehicle leases, FCC wireless telecommunications licenses, service and access agreements for telephone, internet, cable
TV and other communication services, and all permits, approvals and licenses (to the extent applicable in any way to the above referenced Real Property or the Tangible Personal Property and assignable); and applicable insurance proceeds and
condemnation awards or claims thereto to the extent provided herein to be assigned to Buyer hereunder; 
 2.6    The
“Equipment Leases” being all leases and purchase money security agreements for any equipment, machinery, vehicles, furniture or other personal property at the applicable Real Property and the applicable Improvements, together
with all deposits made thereunder. All Equipment Leases in effect as of the Effective Date are set forth on Schedule 2.6 attached hereto; 

2.7    The “Operating Agreements” being all maintenance, service and supply contracts, license
agreements, and other similar agreements for goods or services at the applicable Real Property and the applicable Improvements, together with all deposits made or held by such Seller thereunder. All Operating Agreements in effect as of the Effective
Date (other than the Excluded Contracts) are set forth on Schedule 2.7 attached hereto; 
 2.8    All other
property, assets, rights or interests owned or held by such Seller and located at the applicable Real Property or otherwise used in the ownership of such Real Property or operation of the business at the applicable Project (the
“Miscellaneous Assets”). 
 With respect to each Parcel, the applicable Real Property, Improvements, Resident Agreements, Leases,
Tangible Personal Property, Intangible Property, Equipment Leases, Operating Agreements and Miscellaneous Assets (but in each case, excluding the Excluded Property) are sometimes hereinafter referred to, collectively, as a
“Property,” or collectively, with respect to all Parcels, as the “Properties.” 

  

					
		 	7	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 2.9    Notwithstanding anything to the contrary in Article II, the applicable
property, assets, rights and interest set forth in this Section 2.9 are excluded from each Property (the “Excluded Property”): 

2.9.1    Except for deposits expressly included in this Article II, all cash on hand or on deposit in any house bank,
operating account or other account maintained in connection with the ownership of such Property or operation of the business at the applicable Project; 

2.9.2    Any cash equivalents, securities and investments, and accounts receivable, notes receivable, premiums
receivable, commissions receivable, and other rights to receive payments from others, including all trade accounts receivables representing amounts payable to Seller for services rendered prior to the Closing Date; 

2.9.3    Any tangible or intangible property owned by (i) the lessor under any Equipment Leases; (ii) the
supplier, vendor, licensor or other party under any Operating Agreements or Intangible Property; (iii) the tenant or resident under any Leases or Resident Agreements; (iv) any guests or customers of the applicable Project; or (v) the
Manager; 
 2.9.4    All (i) trademarks, trade names, service marks, symbols, logos and other intellectual
property rights held by Sellers (the “Proprietary Marks”), except as set forth in Schedule 2.5; (ii) signs and other fixtures and personal property at the applicable Project which bear any of the Proprietary Marks;
(iii) Seller’s internal management, operational, employee and similar manuals, handbooks and publications; and (iv) Seller’s centralized systems and programs used in connection with any business at the applicable Project,
including, without limitation, the (A) sales and marketing and (B) purchasing, systems and programs; and 

2.9.5    Each Excluded Contract. 

2.10    Except for Liabilities for which any Seller has expressly agreed to indemnify Buyer under any other provision in
this Agreement (or in any documents which any Seller is obligated to deliver pursuant to this Agreement and/or prior to Closing), at Closing Buyer shall assume, hold Sellers harmless from, and defend Sellers from any claim, suit, action, proceeding,
effort, or undertaking relating to the following: (i) all Liabilities with respect to the Properties, the business at the Projects and any taxes arising out of ownership or operations of the Properties, but only to the extent (A) first
arising on or after the Closing Date, or (B) first arising prior to the Closing, but for which Buyer has received a credit for such Liabilities under Article VIII, these Liabilities include, without limitation, any claims against Sellers for
any tort or alleged tort, any claims against Sellers for negligence or professional malpractice, any claims against Sellers for any breach of contract or alleged breach of contract, any claims against Sellers for any regulatory fine or penalty, or
any claims against Sellers (whether deployed by a private person or a governmental agency) for any penalty, fine, or payment of money, (ii) all Liabilities otherwise expressly assumed by Buyer or against which Buyer has expressly agreed to
indemnify any Seller under any other provision in this Agreement (or in any documents which 

  

					
		 	8	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
Buyer is obligated to deliver pursuant to this Agreement and/or prior to Closing), and (iii) all Liabilities with respect to the physical condition of the Properties, whether arising prior
to or after the Closing. The provisions of this Section 2.10 shall survive Closing. 
 2.11    Sellers and Buyer
acknowledge that Buyer may cause one or more entities controlling, controlled by or under common control with Buyer to: (a) acquire and own the fee ownership interests of each Property from and after the Closing; (b) enter into the New
Management Agreements with the Manager for the operation of each Property from and after the Closing; and (c) otherwise consummate the transactions contemplated hereunder, in accordance with laws applicable to Buyer and its affiliates.
Therefore, notwithstanding any terms to the contrary herein, Sellers agree that Buyer may, without the prior consent of any Seller, assign its rights hereunder, including its right to purchase the Properties or any portion thereof, or delegate the
performance of any of its obligations hereunder, to one or more entities controlling, controlled by or under common control with Buyer; provided, however, that (i) no such assignment or delegation shall release the original entity named as
Buyer herein from any of Buyer’s obligations pursuant to this Agreement, and (ii) Buyer shall provide Sellers with notice of any such assignment not less than fifteen (15) days prior to the Closing Date. 

ARTICLE III 
 PURCHASE AND SALE

 3.1    Purchase Price. The purchase price (the “Purchase Price”) for the Properties shall be
Seventy-Eight Million Five Hundred Thousand No/100ths Dollars ($78,500,000.00). 
 3.2    Deposit. Within three
(3) Business Days after the Effective Date, Buyer shall deposit into an escrow with Escrow Agent Five Hundred Thousand Dollars ($500,000.00) (together with all interest accrued thereon, the “Initial Deposit”). In the
event that Buyer shall have delivered the Approval Notice (as hereinafter defined) to Sellers before the expiration of the Due Diligence Period (as hereinafter defined), the Initial Deposit shall be
non-refundable except as otherwise expressly provided in this Agreement, and shall be applied and credited toward payment of the Purchase Price payable at Closing. In the event that Buyer delivers written
notice to Sellers to terminate this Agreement (“Disapproval Notice”) or shall fail to deliver the Approval Notice to Sellers before the expiration of the Due Diligence Period, Buyer shall be deemed to have elected to
terminate this Agreement and the Initial Deposit shall be returned to Buyer. Should Buyer have delivered the Approval Notice before the expiration of the Due Diligence Period, within three (3) Business Days thereafter, Buyer shall deposit into
the escrow an additional Five Hundred Thousand Dollars ($500,000.00) (together with all interest accrued thereon, the “Secondary Deposit,” and together with the Initial Deposit, the “Deposit”), which shall be
non-refundable except as otherwise expressly provided in this Agreement, and shall be applied and credited toward payment of the Purchase Price payable at Closing. 

3.3    Closing Payment. Buyer shall pay the Purchase Price, as adjusted by the prorations and credits specified
herein, to Sellers by wire transfer of immediately available federal funds (through the escrow described in Section 7.1) as and when provided in Section 7.2.2 and in the escrow instructions contained herein. 

  

					
		 	9	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 3.4    Additional Consideration. Buyer agrees that it shall expend
significant time and material sums of money in connection with negotiating and executing this Agreement, conducting its due diligence investigations, and preparing for the Closing, all in reliance on Sellers’ obligations under this Agreement.
Further, Sellers acknowledge that Buyer would not have entered into this Agreement without having the opportunity to perform such investigations and without having the right to terminate this Agreement in accordance with the provisions of
Section 6.4 of this Agreement. Accordingly, separate consideration exists to support Sellers’ obligations hereunder notwithstanding Buyer’s right to terminate this Agreement in accordance with the provisions of Section 6.4 of
this Agreement. 
 3.5    Allocation of Purchase Price. Sellers and Buyer agree that the Purchase Price shall be
allocated between Properties (but not between the components of individual Properties) as determined by agreement of the Parties prior to the expiration of the Due Diligence Period for Sellers’ federal, state and local tax purposes. Sellers
shall, following the Effective Date, prepare and deliver to Buyer for its review a schedule allocating the Purchase Price to each the Property (with respect to each Property, the “Allocated Purchase Price”). Buyer
shall review such Allocated Purchase Price and provide any objections to Sellers within five (5) days after the receipt thereof. If Buyer raises any objection to the Allocated Purchase Price, the Parties hereto will negotiate in good faith to
resolve such objection(s). Upon reaching an agreement on the Allocated Purchase Price, Buyer and Sellers shall (i) cooperate in Sellers’ filing of any forms with respect to the Allocated Purchase Price as finally resolved, including any
amendments to such forms required pursuant to this Agreement with respect to any adjustment to the Purchase Price and (ii) cooperate in Sellers’ filing of all of its federal, state and local tax returns and related tax documents consistent
with such Allocated Purchase Price as the same may be adjusted pursuant to this Agreement. Notwithstanding the foregoing, nothing herein shall obligate Buyer to agree, whether prospectively or retrospectively, to a purchase price allocation that is
inconsistent with its accounting policies, GAAP or other financial reporting requirements. 
 3.6    Independent
Consideration. Upon execution of this Agreement, Buyer shall wire to Sellers One Hundred Dollars ($100.00) as independent consideration for this Agreement (the “Independent Consideration”). 

3.7    Escrow. Sellers agree that the sum of One Million Dollars ($1,000,000.00) (the “Escrow
Funds”) from the Purchase Price due to Sellers at Closing shall be set aside and deposited into an escrow pursuant to the terms of the Escrow Agreement attached hereto as Exhibit B (the “Escrow
Agreement”), which shall be executed by the Parties and Escrow Agent on the Closing Date. All of Buyer’s claims for Liabilities arising under this Agreement (including, but not limited to, Sellers’ breach of representations,
warranties or covenants contained herein) shall be made against the Escrow Funds under the terms of the Escrow Agreement. The Escrow Agreement shall be for a term of eighteen (18) months following the Closing Date. On the date that is nine
(9) months after the Closing Date (the “First Release Date”), one-half (1/2) of the Escrow Funds shall be released to Sellers, less (a) the amount of any disbursements
made to Buyer in accordance with the Escrow Agreement and (b) any outstanding unresolved claims that were made by Buyer against Sellers pursuant to this Agreement prior to the First Release Date; provided, however, (i) no such release
shall cause the Escrow Funds on deposit with escrow to be less than Five Hundred Thousand Dollars ($500,000.00), and (ii) if the Escrow Funds on deposit with escrow as of the First Release Date 

  

					
		 	10	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
are less than Five Hundred Thousand Dollars ($500,000.00), then no Escrow Funds shall be released to Sellers on the First Release Date. On the date that is eighteen (18) months after the
Closing Date (the “Second Release Date”), the balance of the Escrow Funds then on deposit with escrow shall be released to Sellers, less the amount of outstanding unresolved claims made by Buyer against Sellers
pursuant to this Agreement on the Second Release Date, which amounts shall be retained by the escrow to be held and invested by it under the terms of Escrow Agreement until such claims are finally resolved and then disbursed in accordance with the
terms of the Escrow Agreement. 
 ARTICLE IV 

CONDITIONS PRECEDENT 

4.1    Conditions to Sellers’ Obligation to Close. In addition to all other conditions set forth herein, the
obligation of each Seller to consummate the transactions contemplated hereunder shall be contingent upon each of the following: 

4.1.1    Representations. Buyer’s representations and warranties contained herein shall be true and correct
in all material respects as of the date of this Agreement and as of the Closing Date excluding, however, any matter or change expressly permitted by the terms of this Agreement. 

4.1.2    Performance. As of the Closing Date, Buyer shall have performed its obligations hereunder and all
deliveries to be made by Buyer at Closing shall have been tendered. 
 4.1.3    Concurrent Closing. The Closing
with respect to all three (3) of the Properties shall occur concurrently on the Closing Date. 

4.2    Conditions to Buyer’s Obligation to Close. In addition to all other conditions set forth herein, the
obligation of Buyer to consummate the transactions contemplated hereunder shall be contingent upon each of the following: 

4.2.1    Representations. Sellers’ representations and warranties contained herein shall be true and correct
in all material respects as of the date of this Agreement and as of the Closing Date. 
 4.2.2    Performance.
As of the Closing Date, Sellers shall have performed Sellers’ obligations hereunder and all deliveries to be made by Sellers, or which Sellers are required to cause to be made, at Closing shall have been tendered. 

4.2.3    Existing Management Agreements. Each Seller shall have terminated the applicable Existing Management
Agreement concurrently with the Closing without cost or expense to Buyer. 
 4.2.4    Title. Upon the sole
condition of payment of the premiums, the Title Company shall have irrevocably committed to issue to Buyer with regard to each Property an ALTA Owner’s Policy of title insurance, dated as of the date and time of the recording of the

  

					
		 	11	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
applicable Deed vesting title to such Property in Buyer, in the amount of the applicable Allocated Purchase Price, insuring Buyer as owner of good, marketable and indefeasible fee simple title to
such Property, subject only to the applicable Permitted Exceptions (each, a “Title Policy,” and collectively, the “Title Policies”). 

4.2.5    Bankruptcy. No proceeding has been commenced by or against any Seller under the federal Bankruptcy Code
or any state law for relief of debtors. 
 4.2.6    Concurrent Closing. The Closing with respect to all three
(3) of the Properties shall occur concurrently on the Closing Date. 
 4.3    Failure of Condition
Precedent. So long as a Party is not in default of its covenants and agreements beyond applicable notice and cure periods hereunder or in material breach of a representation and warranty, if any condition to such Party’s obligation to
proceed with the Closing hereunder has not been satisfied as of the Closing Date and such condition is not cured within ten (10) days after receipt of notice of default or failure of such condition to be satisfied from the non-defaulting Party or the Party for whose benefit the condition precedent exists, such notifying Party may, in its sole discretion, either (i) terminate this Agreement by delivering written notice to the
other Party on or before such date as is five (5) days after the expiration of the ten (10) day notice period described above in this Section (or other applicable date), or (ii) elect to close, notwithstanding the non-satisfaction of such condition, in which event such Party shall be deemed to have waived any such condition. In the event that Buyer elects to terminate this Agreement pursuant to this Section 4.3, then the
Deposit shall be returned to Buyer. 
 ARTICLE V 

TITLE MATTERS 

5.    Title Matters. 

5.1    Preliminary Title Report; Survey. If not previously delivered to Buyer, Sellers shall request that Title
Company promptly deliver to Buyer a copy of a preliminary title report or commitment for title insurance (each a “Preliminary Title Report”, and collectively, the “Preliminary Title
Reports”) covering each Property from Title Company. In addition, Sellers shall (if not previously delivered) deliver to Buyer a copy of the most recent existing survey (if any) in Sellers’ possession relating to each Property (if
any, each, a “Survey” and collectively, the “Surveys”). If Buyer determines that any matter set forth in the Preliminary Title Reports or Surveys is unacceptable, Buyer’s sole remedy shall be to terminate this
Agreement prior to the end of the Due Diligence Period, and Sellers and Buyer shall have no further rights or obligations hereunder, except for the provisions hereof that expressly survive termination of this Agreement. If Buyer fails to terminate
this Agreement pursuant to the previous sentence, then Buyer shall be deemed to have approved the Preliminary Title Reports and Surveys. 

5.2    Exceptions to Title. With respect to each Property, Buyer shall be obligated to accept title, subject to the
following exceptions (the “Permitted Exceptions”): 
 5.2.1    Real estate taxes and
assessments not yet delinquent; 

  

					
		 	12	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 5.2.2    The applicable New Management Agreement; and 

5.2.3    Such other exceptions to title or survey exceptions for such Property as are included in the Preliminary Title
Report or by the Title Company as a result of matters on the Survey, or as otherwise expressly permitted under this Agreement, or any exceptions resulting from the acts of Buyer or its agents or representatives. 

If Buyer disapproves any lien or other matter reflected in the Preliminary Title Reports, Buyer shall deliver written notice to Sellers on or prior to that
date which is ten (10) Business Days prior to the expiration of the Due Diligence Period identifying with specificity such disapproved title matters (“Buyer’s Title Objection Notice”). Sellers shall
have five (5) Business Days from the date of such Buyer’s Title Objection Notice in which to advise Buyer whether or not they are prepared to cure the same prior to the Closing Date (which cure may be effected by payment and discharge of
the objectionable item or by causing the Title Company to remove the same as an exception or affirmatively insure over such item). Failure by Sellers to respond within such five (5) Business Day period shall be deemed Sellers’ election to
not to cure any matters set forth in Buyer’s Title Objection Notice. In the event Sellers elect (or are deemed to have elected) not to cure any matters set forth in Buyer’s Title Objection Notice, Buyer shall have until the expiration of
the Due Diligence Period in which to advise Sellers in writing of Buyer’s election (a) to waive the matters to which Buyer objected and which Sellers have elected (or are deemed to have elected) not to cure and to proceed to Closing or
(b) to terminate this Agreement in which event the Deposit shall be returned to Buyer. In the event that this Agreement is not terminated pursuant to Section 6.4 below, Buyer shall be deemed to have waived all rights to terminate this
Agreement pursuant to this paragraph. Except for the Permitted Exceptions, Sellers shall (i) pay, or cause to be paid, all mortgages and deeds of trust recorded against the Properties and (ii) satisfy or remove (or cause to be satisfied or
removed) all mechanic’s or materialmen’s liens claimed against any Property arising from work performed prior to Closing; provided, however, that Sellers’ obligations pursuant to this sentence shall not apply to any Liens arising out
of acts or omissions taken by or on behalf of Buyer. 
 Buyer shall review title to the Properties by obtaining prior to the expiration of the Due Diligence
Period the commitment of Title Company to issue to Buyer on the Closing Date the Title Policy for each Property. If Buyer desires to obtain coverage over survey matters in the Title Policy for any Property, Buyer shall deliver to the Title Company
prior to the Closing Date a current ALTA survey for such Property certified by a licensed surveyor in the State of Utah sufficient to permit or cause the Title Company to insure against survey matters at the Closing. 

5.3    Endorsements to Title Policy. It is understood that Buyer may request a number of endorsements to the Title
Policies. The issuance of such endorsements shall not be a condition to Closing. 

  

					
		 	13	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 ARTICLE VI 

DUE DILIGENCE PERIOD 

6.    Due Diligence Reviews. Except for title and survey matters (which shall be governed by the provisions of
Article V above), and subject to the provisions hereinafter set forth, Buyer shall have until the expiration of the Due Diligence Period within which to perform and complete all of Buyer’s due diligence examinations, reviews and inspections of
all matters pertaining to the purchase of the Properties, including all toxic, soils, engineering and environmental reports and all leases, license agreements and service contracts, sewer/water conditions, utilities service information, zoning
information, access information, assessments and city fees, developmental conditions and approvals, operating expenses and legal, physical, environmental and compliance matters and conditions respecting the Properties (the foregoing being
collectively called the “Property Information”). 
 6.1    Sellers’ Delivery of
Specified Documents. To the extent such items are in Sellers’ possession or control, Sellers shall provide or make available to Buyer, (a) within three (3) days after the Effective Date, in an electronic data room located at
https://www.dropbox.com/home/Utah%203%20Disposition (the “Data Room”) the information and documents requested by Buyer as set forth on Schedule 6.1 attached hereto, and (b) such additional due diligence materials
as Buyer shall reasonably request between the Effective Date and the expiration of the Due Diligence Period. In no event, however, shall Sellers be obligated to make available (or cause to be made available) any proprietary or confidential
documents, including, without limitation, reports or studies that have been superseded by subsequent reports or studies, or any of the following confidential and proprietary materials (collectively, the “Excluded Materials”):
(1) information contained in financial analyses or projections (including Sellers’ budgets, valuations, cost-basis information and capital account information); (2) material that is subject to attorney-client privilege or that is
attorney work product; (3) appraisal reports or letters; (4) organizational, financial and other documents relating to Sellers as opposed to the Properties (other than any evidence of due authorization and organization required under this
Agreement); (5) material that Sellers are legally required not to disclose other than by reason of legal requirements voluntarily assumed by Sellers after the Effective Date; or (6) the Excluded Contracts, other than the agreements listed
on Schedule 1.9, copies of which agreements listed on Schedule 1.9 Sellers shall provide to Buyer to the extent Sellers are not prohibited from disclosing such agreements pursuant to a confidentiality agreement or other confidentiality
obligation. Sellers shall have the continuing obligation during the pendency of this Agreement to add to the Data Room or otherwise provide Buyer with any document described in Schedule 6.1 and coming into the possession of any Seller after
the initial delivery of such information. 
 6.2    Inspection of the Properties. Upon forty-eight
(48) hours advance notice to Sellers, Buyer shall have the right to perform such examinations, tests, investigations and studies of the Properties (the “Inspections”) as Buyer reasonably deems advisable in its sole discretion,
and at its sole cost and expense, in accordance with this Section 6.2, including, without limitation, an inspection of the books and records of each Seller relating to the operation of the applicable Property other than Excluded Materials.
Buyer may conduct the Inspections with its officers, employees, contractors, consultants, agents or representatives (“Buyer’s Inspectors”). Sellers shall provide reasonable access to the Properties for
Buyer’s Inspectors to perform the Inspections; provided, however, that (i) each Seller shall have the right to have an employee, agent or representative of such Seller accompany Buyer’s Inspectors; (ii) Buyer’s Inspectors
shall not perform any drilling, coring or other invasive or destructive testing, without the prior written consent of the applicable Seller, which consent may be given or withheld in such Seller’s

  

					
		 	14	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
sole discretion; (iii) the Inspections shall be conducted by Buyer’s Inspectors on a Business Day between 9:00 a.m. and 5:00 p.m. (local time at the Real Property); (iv) Buyer’s
right to perform the Inspections shall be subject to any rights of residents, and restrictions in the Resident Agreements, the Leases, and the Existing Management Agreements; and (v) the Inspections shall not unreasonably disrupt or disturb the
operation of the business at the Projects or the rights of tenants or residents at the Projects and Buyer’s Inspectors shall comply with reasonable requests with respect to the Inspections to minimize such disruption or disturbance. In the
course of its Inspections, Buyer may make inquiries to Manager and other Persons, including, without limitation, representatives, contractors, property managers, leasing agents, parties to Leases, Equipment Agreements or Operating Agreements and
municipal, local and other government officials and representatives in accordance with the terms of this Agreement, and Sellers hereby consent to such inquiries. 

6.2.1    Repair List. During the Due Diligence Period, Buyer and Sellers will reasonably cooperate
and use good faith efforts to jointly inspect each Property and agree prior to the expiration of the Due Diligence Period on a list of property condition issues to be addressed by each Seller at the applicable Property (such lists, the
“Repair Lists,” and each of the issues on each Repair List, an “Agreed Repair Item”). Notwithstanding the foregoing, in no event shall (i) the aggregate costs to be incurred by the Sellers
in order to remedy or resolve all of the Agreed Repair Items exceed Twenty Thousand Dollars ($20,000.00) for each Property (the “Seller Repair Cost Cap”), it being acknowledged and agreed that no Seller shall be
obligated to make any repair or perform any work with respect to any Property (and no such work or repair shall constitute an Agreed Repair Item) on account of any issues discovered by Buyer during its inspections to the extent such repair or work
is not an Agreed Repair Item or would result in the aggregate costs and expenses incurred by such Seller pursuant to this Section 6.2.1 to exceed the Seller Repair Cost Cap and (ii) any Seller be obligated to perform
any work or repair (and no such work or repair shall constitute an Agreed Repair Item) if such work or repair is contemplated by the capital expenditure budget provided by Sellers to Buyer with respect to the applicable Property. Sellers agree to
use commercially reasonable efforts to cause the Agreed Repair Items to be substantially completed prior to Closing. Not more than three (3) Business Days prior to the Closing, Buyer and Sellers shall hold a final walkthrough of the Properties
to confirm substantial completion of each Agreed Repair Item. If any of the Agreed Repair Items are not completed by the Closing Date, then the Parties shall proceed to Closing provided that the Manager shall, under the terms of the applicable New
Management Agreement(s), expressly assume the obligation to complete such Agreed Repair Items which are not completed on or prior to the Closing Date, at its sole cost, promptly following the Closing Date. 

6.3    Review Standards. Buyer shall use its commercially reasonable efforts at all times to conduct its due
diligence reviews, inspections and examinations in a manner so as to not cause Liability to any Seller or any Property, or create any Lien on any Property, and so as to not unreasonably interfere with or disturb any tenant or any Seller’s
operation of the applicable Property, and Buyer will indemnify, defend (with counsel reasonably acceptable to Sellers), and hold Sellers and the Properties harmless from and against any such Liability or Lien (including any such Liability or Lien
caused by Buyer’s employees, agents, advisors, partners, independent contractors, members, direct and indirect owners, officers, directors, clients and representatives, 

  

					
		 	15	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
but excluding any Liability or Lien suffered by any Seller or any Property as a result of the mere discovery of an existing condition at such Property that is not exacerbated by Buyer or any of
its employees, agents, advisors, partners, independent contractors, members, direct and indirect owners, officers, directors, clients and representatives). Buyer shall maintain a commercial general liability insurance policy (containing a waiver of
subrogation) to cover Buyer’s activities on the Properties pursuant to this Section 6.3 in an amount not less than One Million Dollars ($1,000,000) per occurrence, Two Million Dollars ($2,000,000) general aggregate. Sellers shall be named
as additional insureds on such policy. Buyer shall deliver to Sellers an insurance certificate evidencing compliance with such insurance requirements prior to entering any Property for the purpose of conducting any physical inspections of such
Property. In the event of any termination hereunder, Buyer shall return all documents and other materials furnished by Sellers hereunder and shall provide Seller with copies of all third party reports (other than Excluded Materials) obtained by
Buyer in connection with the transactions contemplated by this Agreement. In connection with any permitted testing, sampling or other work performed hereunder, Buyer shall promptly dispose of (or cause to be disposed of) at its sole cost in
accordance with all applicable Laws any waste, samples or other materials generated or removed by Buyer or by its agents or contractors arising from or in connection with the investigations, samplings or testing hereunder and shall restore the
Properties to its prior condition promptly following completion of any such Inspection, except to the extent caused by any Seller’s gross negligence or willful misconduct. This Section 6.3 shall survive Closing or any termination of this
Agreement. 
 6.4    Due Diligence Approval. Prior to the expiration of the Due Diligence Period, Buyer may in
its sole and absolute discretion, either (a) terminate this Agreement for any reason or no reason by delivery of a Disapproval Notice or (b) approve the purchase of the Properties, following Buyer’s due diligence examinations, reviews
and inspections of the Properties, by written notice to Sellers (such notice being herein called the “Approval Notice”). In the event that Buyer delivers an Approval Notice to Sellers, Buyer shall have no further right to
terminate this Agreement pursuant to this Section 6.4. In the event that Buyer fails to deliver the Approval Notice to Sellers before the expiration of the Due Diligence Period, Buyer shall be deemed to have elected to terminate this Agreement.
In the event that Buyer delivers a Disapproval Notice or is deemed to have terminated this Agreement pursuant to this Section 6.4, (i) the Initial Deposit, together with any interest earned thereon, shall be returned to Buyer and (ii) this
Agreement, and the obligations of the Parties hereunder, shall terminate (and no party hereto shall have any further obligation in connection herewith except under those provisions that expressly survive a termination of this Agreement). In the
event of termination, Sellers shall retain the Independent Consideration. 
 6.5    Form of Management Agreement.
During the Due Diligence Period, Manager and Buyer shall use good faith efforts to negotiate the form of a management agreement (the “Form of New Management Agreement”) pursuant to which Manager will
continue to operate each Property after Closing, which Form of New Management Agreement will then be duplicated to create the new management agreement for each Property (each, a “New Management Agreement”) in
substantially the form of the Form of New Management Agreement. Sellers and Buyer acknowledge and agree that each of the New Management Agreements for the respective Properties shall be executed by the Manager and Buyer’s designee for each
Property. In the event that the Parties are not able to agree upon the Form of New 

  

					
		 	16	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
Management Agreement prior to the expiration of the Due Diligence Period, then this Agreement shall automatically terminate concurrent with the expiration of the Due Diligence Period, the Parties
shall have no further rights or obligations pursuant to this Agreement (except for those rights and obligations which expressly survive the termination of this Agreement pursuant to its terms) and the Deposit (or portion thereof that has previously
been delivered to Escrow Holder) shall be returned to Buyer. 
 ARTICLE VII 

CLOSING 

7.    Closing Procedure. The closing (the “Closing”) of the sale and purchase herein provided
shall occur on January 31, 2018 (the “Closing Date”). 
 7.1    Escrow. The Closing
shall be accomplished pursuant to the escrow instructions set forth on Exhibit C attached hereto. 

7.2    Closing Deliveries. The Parties shall deliver to the Escrow Agent the following: 

7.2.1    Sellers’ Deliveries. At least one (1) Business Day prior to the Closing Date, with respect to
each Property, the applicable Seller shall deliver (or cause to be delivered) to the Escrow Agent the following: 

(a)    Deeds. A Special Warranty Deed substantially in the form attached hereto as part of Exhibit D
(the “Deed”), sufficient to vest title in the applicable Real Property in Buyer, subject only to the Permitted Exceptions, executed and acknowledged by the applicable Seller; 

(b)    Bill of Sale and Assignment and Assumption of Leases, Contracts and Resident
Agreements. Two (2) original counterparts of a Bill of Sale and Assignment of Leases, Contracts and Resident Agreements substantially in the form of Exhibit E attached hereto (“Bill of Sale”),
executed and acknowledged by the applicable Seller; 
 (c)    Notice to Residents. A notice to each resident in
a form that is mutually agreeable to both Buyer and the applicable Seller and that notifies the residents of the change in ownership and informs them where to send rental payments; 

(d)    Notice to Tenants. A notice to each applicable tenant in a form that is mutually agreeable to both Buyer
and the applicable Seller and that notifies such tenants of the change in ownership and informs them where to send rental payments; 

(e)    FIRPTA. A Foreign Investment in Real Property Tax Act affidavit executed by or on behalf of the applicable
Seller, and any similar form required under state or local law; 
 (f)    Title Certificate. The applicable
Seller’s title certificate in the form of Exhibit F to the Title Company; 

  

					
		 	17	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 (g)    [Intentionally Omitted]; 

(h)    New Management Agreement. Two (2) original counterparts of the applicable New Management Agreement,
executed and acknowledged by Manager; and 
 (i)    Other Deliveries. Any other Closing deliveries required to
be made by or on behalf of each Seller hereunder or reasonably required to effect the Closing of this transaction consistent with this Agreement. 

7.2.2    Buyer’s Deliveries. At least one (1) Business Day prior to the Closing Date, with respect to
each Property, (except as to the Purchase Price, which shall be delivered no later than 1:00 p.m. local time at the Real Property on the Closing Date and shall be a single delivery with respect to all Properties), Buyer shall deliver to the
Escrow Agent the following: 
 (a)    Purchase Price. The Purchase Price, plus or minus applicable adjustments,
prorations and Buyer’s closing costs as specified in this Agreement, in immediate, same-day federal funds wired for credit into the Escrow Agent’s escrow account; 

(b)    Bill of Sale and Assignment and Assumption of Leases, Contracts and Resident Agreements. Two
(2) original counterparts of the Bill of Sale, executed by Buyer; 
 (c)    New Management Agreement. Two
(2) original counterparts of the applicable New Management Agreement, executed by Buyer; and 
 (d)    Other
Deliveries. Any other Closing deliveries required to be made by or on behalf of Buyer hereunder or reasonably required to effect the Closing of this transaction consistent with this Agreement. 

7.3    Closing Costs. Sellers shall pay or cause to be paid (1) any and all transfer taxes and intangible
taxes payable in connection with the sale contemplated herein, (2) the premium for the standard ALTA portion of the Title Policy, and (3) one-half (1/2) of all escrow charges and recording and filing
fees. Buyer shall pay (1) the title insurance costs for extended coverage, if any, obtained by Buyer and all endorsements obtained by Buyer, (2) one-half (1/2) of all escrow charges and recording and
filing fees, (3) Buyer’s cost to obtain each new survey or to update any Survey, and (4) all fees, costs or expenses in connection with Buyer’s due diligence reviews and analyses hereunder. Any other closing costs shall be
allocated in accordance with local custom. Sellers and Buyer shall pay their respective shares of prorations as hereinafter provided. Each party shall pay the fees of its own attorneys, accountants and other professionals. The provisions of this
Section 7.3 shall survive Closing or any termination of this Agreement. 
 7.4    Possession. At the time of
Closing, Sellers shall deliver to Buyer possession of the Properties, subject only to the Permitted Exceptions and the rights of residents under the Resident Agreements and tenants under the Leases. The provisions of this Section 7.4 shall
survive Closing. 

  

					
		 	18	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 7.5    Delivery of Books, Records and Title to Vehicles. At the
Closing and outside of escrow, Sellers shall deliver at each Property the originals of the Leases, Resident Agreements, Equipment Leases and Operating Agreements (or copies thereof if originals are not available) and the following to the extent they
pertain to such Property and are in the possession or control of the applicable Seller: copies or originals of all books and records of account, contracts, copies of correspondence with residents and suppliers, receipts for deposits, unpaid bills
and other papers or documents; all permits and warranties; all advertising materials, booklets, keys and other items, if any, used in the operation of such Property; and to the extent within the possession or reasonable control of such Seller, plans
and specifications for the applicable Building and all operation manuals. Sellers shall reasonably cooperate with Buyer before and after Closing to transfer to Buyer any such information stored electronically. Following Closing, Buyer and Sellers
shall cooperate to cause to be delivered to Buyer certificates of title to the applicable Owned Vehicles executed and acknowledged (or bonded) in accordance with applicable law in the State of Utah by the Utah Department of Motor Vehicles. The
provisions of this Section 7.5 shall survive Closing. 
 ARTICLE VIII 

PRORATIONS AND EXPENSES 

8.    Prorations and Expenses. 

8.1    Closing Statements. No later than the day prior to Closing, the Parties, through their respective employees,
agents or representatives, jointly shall make such examinations, audits and inventories of each Property and the business at each Project as may be necessary to make the adjustments and prorations to the Purchase Price as set forth in
Section 8.2 or any other provisions of this Agreement. Based upon such examinations, audits and inventories, the Parties jointly shall prepare prior to Closing a closing statement for each Property (the “Closing
Statements”), which shall set forth their best estimate of the amounts of the items to be adjusted and prorated under this Agreement with respect to each Property and the business at each Project. The Closing Statements shall be approved
and executed by the Parties at Closing, and to the extent any such items on the Closing Statements were based upon estimations, such items shall be reprorated after the Closing as expressly set forth in Section 8.2.10. 

8.2    Prorations. The following apportionments shall be made between the Parties at the Closing as of 11:59 p.m.
local time at the Real Property on the date immediately prior to the Closing Date: 
 8.2.1    Rents and
Payments. Buyer shall receive from the applicable Seller a credit for any rent and other income, including community fees, under each Resident Agreement and Lease collected by such Seller before Closing that applies to any period after Closing.
Uncollected rent and other uncollected income and community fees shall not be prorated at Closing. After Closing, Buyer shall apply all rent and income collected by Buyer from a tenant under a Resident Agreement or Lease, first to such tenant’s
current monthly rental, then to the month in which Closing occurred, and then to arrearages in the reverse order in which they were due, remitting promptly to the applicable Seller any balance properly allocable to such

  

					
		 	19	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
Seller’s period of ownership. Buyer shall bill and use commercially reasonable efforts to collect such rent arrearages in the ordinary course of business, but Buyer shall not be obligated to
engage a collection agency or take legal action to collect any rent arrearages. Any rent or other income received by the applicable Seller under any Resident Agreement or Lease after Closing which are owed to Buyer shall be remitted to Buyer by such
Seller promptly after receipt for allocation and disbursement as provided herein. 
 8.2.2    Deposits and Prepaid
Rent. All security deposits and pre-paid rent not previously applied by the applicable Seller pursuant to the terms of the applicable Resident Agreement or Lease shall be transferred by such Seller to
Buyer at Closing; at the Closing, Buyer hereby assumes all of each Seller’s financial and custodial obligations with respect to security deposits and pre-paid rent so transferred by the Sellers to Buyer,
it being the intent and purpose of this provision that, at Closing, Sellers will be relieved of all fiduciary and custodial obligations, and that Buyer will assume all such obligations and be directly accountable to the tenants of each Property with
respect thereto. 
 8.2.3    Taxes and Charges for Utilities. Real estate and personal property taxes and
assessments, water charges, sewer charges and charges for all other utilities, shall be apportioned on the basis of the fiscal period for which assessed, except that if there is a utility meter on any Property, apportionment at the Closing for such
utility shall be based on the last available reading, subject to adjustment after the Closing on a per diem basis, when the next reading is available. 

8.2.4    Utility Deposits. Utility deposits for any utility accounts which are transferred to Buyer shall be
credited to the applicable Seller. 
 8.2.5    Equipment Leases and Operating Agreements. All amounts due under
Equipment Leases and Operating Agreements assigned by the Sellers to Buyer at Closing shall be prorated, such that the applicable Seller is responsible for all such amounts related to periods prior to 11:59 p.m. local time at the Real Property on
the day immediately prior to the Closing Date and Buyer shall be responsible for all amounts due with respect to periods thereafter. To the extent that the applicable Seller has prepaid amounts under any Equipment Lease or Operating Agreement with
respect to periods from and after 11:59 p.m. local time at the Real Property on the day immediately prior to the Closing Date, Buyer shall provide Seller with a credit for such amounts at Closing. 

8.2.6    Employee Expenses. Sellers and Manager shall be responsible for all Employee Expenses related to periods
prior to 11:59 p.m. local time at the Real Property on the day immediately prior to the Closing Date. All Employee Expenses with respect to periods from and after 11:59 p.m. local time at the Real Property on the day immediately prior to the Closing
Date shall be the responsibility of Manager in accordance with the terms of the New Management Agreements. 

8.2.7    [Intentionally Omitted]. 

8.2.8    Government Healthcare Payments. If, on or after the Closing Date, Buyer receives payment from any
Government Healthcare Program and/or contractors 

  

					
		 	20	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
designated by such Government Healthcare Programs which payment represents reimbursement with respect to payment for services rendered by any Seller or Manager prior to the Closing Date, then
Buyer shall promptly forward such payments to the applicable Seller or Manager. Any payments received by any Seller or Manager on or after the Closing Date from any Government Healthcare Program which represents reimbursement for services rendered
by Buyer or Manager on or after the Closing Date shall be promptly remitted by such Seller to Buyer. Buyer and Seller agrees to cooperate in providing the applicable Government Healthcare Programs and the contractors designated by such Government
Healthcare Programs with an appropriate statement concerning Government Healthcare Program liabilities, and the respective obligations of the parties hereto if and to the extent required by applicable Law. 

8.2.9    Other Unpaid Expenses. To the extent that on the Closing Date there are any other unpaid expenses
attributable to Sellers’ operation of the Properties, Sellers shall either provide Buyer with a credit in the amount of such unpaid expenses or shall pay such expenses in due course (but prior to delinquency) following the Closing. 

8.2.10    Post-Closing True-Up. If the Closing shall occur before a new
tax rate is fixed for each Property, the apportionment of taxes for each Property at the Closing shall be upon the basis of the old tax rate for the preceding period applied to the latest assessed valuation. Promptly after the new tax rate is fixed,
the apportionment of taxes shall be recomputed. Any discrepancy resulting from such recomputation and any errors or omissions in computing apportionments at the Closing shall be promptly corrected, which obligation shall survive the Closing. If any
operating expenses or other prorations cannot conclusively be determined as of the date of Closing, including all such items in the Closing Statements which are prorated based upon the best estimates of the Parties, then the same shall be adjusted
at Closing based upon the most recently issued bills, and shall be re-adjusted after the Closing occurs. Either Party owing the other Party a sum of money based on such subsequent re-adjustments shall pay said sum to the other Party within ten (10) Business Days thereafter. The Parties shall endeavor to complete any necessary post-Closing true-up
of the prorations and adjustments described herein as soon as possible, but in no event later than ninety (90) calendar days after Closing. The provisions of this Section 8.2.10 and the obligations of each of the Parties hereunder shall
survive the Closing. 
 ARTICLE IX 

CASUALTY AND CONDEMNATION 

9.    Casualty or Condemnation of Property. 

9.1    Casualty. If, at any time after the Effective Date and prior to Closing or earlier termination of this
Agreement, all or any portion of any Real Property is damaged or destroyed by fire or any other casualty (a “Casualty”), Sellers shall give written notice of such Casualty to Buyer as promptly as practicable after the occurrence of
such Casualty, but in any event prior to the Closing (“Casualty Notice”). Such Casualty Notice shall include a description of the incident causing such Casualty, whether or not such Casualty is covered by any of Sellers’
existing insurance policies and Sellers’ estimate of the costs to repair such Casualty (if then known), copies of any and all third party reports and inspections then obtained by Sellers in 

  

					
		 	21	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
connection with such Casualty (if any), copies of any claims submitted to Sellers’ insurance carrier(s) prior to the delivery of such Casualty Notice (if any) and copies of any reports then
filed with any Government Authority in connection with such Casualty (if any). 
 9.1.1    Material Casualty. If
a Casualty occurs between the Effective Date and the Closing Date, and either (A) the cost to repair or restore all or any of the Properties required by a Casualty occurring between the Effective Date and the Closing Date equals or exceeds Six
Hundred Fifty Thousand Dollars ($650,000.00) or (B) any such Casualty event is not covered by any of the applicable Seller’s policies of insurance for the applicable Property and such Seller elects (in its sole and absolute discretion) not
to provide Buyer with a credit against the Purchase Price on account of such uninsured casualty (each of the foregoing is referred to herein as a “Material Casualty”), then Buyer shall have, in its sole and absolute
discretion, the right to elect, by providing written notice to Sellers within fifteen (15) days after Buyer’s receipt of Sellers’ written notice of such Casualty, to (i) terminate this Agreement, in which case (a) the
Deposit (or in the event of a Material Casualty prior to the expiration of the Due Diligence Period, the Initial Deposit) shall be returned to Buyer and (b) the Parties shall have no further rights or obligations under this Agreement, except
those which expressly survive such termination or (ii) proceed to Closing, in which case (a) Sellers shall assign and transfer to Buyer all of Sellers’ right, title and interest in and to all proceeds from all casualty insurance
policies maintained by Sellers with respect to such Casualty (other than amounts applied by Sellers prior to Closing in connection with the repair of the applicable Property) by delivering an assignment instrument to Buyer at Closing in form and
substance reasonably satisfactory to Buyer, and (b) Buyer shall receive no credit from Sellers against the Purchase Price in connection with such Material Casualty other than a credit equal to any unpaid deductibles under Sellers’
insurance policies to the extent such deductibles are called upon to cover any such claim related to such Casualty. If Buyer fails to provide written notice of its election to Sellers within such time period, Buyer shall be deemed to have elected to
terminate this Agreement pursuant to clause (i) of the preceding sentence. If the Closing is scheduled to occur prior to the expiration of Buyer’s election period, then the Closing shall be postponed until the date which is five
(5) Business Days after the expiration of Buyer’s election period. For purposes of clarity, in no event shall any Seller be obligated to provide Buyer with any credit against the Purchase Price on account of any uninsured Casualty unless
such Seller elects to do so in its sole and absolute discretion. 

9.1.2    Non-Material Casualty. In the event of any Casualty other than a
Material Casualty, Buyer shall not have the right to terminate this Agreement, but shall proceed to Closing, in which case (a) Sellers shall assign and transfer to Buyer all of Sellers’ right, title and interest in and to all proceeds from
all casualty insurance policies maintained by Sellers with respect to such Casualty (other than amounts applied by Sellers prior to Closing in connection with the repair of the applicable Property) by delivering an assignment instrument to Buyer at
Closing in form and substance reasonably satisfactory to Buyer, and (b) Buyer shall receive no credit from Sellers against the Purchase Price in connection with such Casualty, other than (i) a credit equal to any unpaid deductibles under
Sellers’ insurance policies to the extent such deductibles are called upon to cover any such claim or (ii) the estimated cost to repair or restore the applicable Property on account of any uninsured Casualty for which any Seller has
elected (in its sole and absolute discretion) to provide Buyer with a credit against the Purchase Price less any such amounts which have been paid by such Seller to repair or restore such Property prior to Closing. 

  

					
		 	22	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 9.2    Condemnation. If, at any time after the Effective Date and
prior to Closing or the earlier termination of this Agreement, any Governmental Authority commences or threatens to commence any condemnation proceeding or other proceeding in eminent domain with respect to all or any portion of any Property (a
“Condemnation”), the Sellers shall give written notice of such Condemnation to Buyer promptly after the Sellers receive notice of such Condemnation. 

9.2.1    Material Condemnation. If the Condemnation would result in the loss of Six Hundred Fifty Thousand Dollars
($650,000.00) or more (a “Material Condemnation”), then Buyer shall have the right to elect, by providing written notice to Sellers within fifteen (15) days after Buyer’s receipt of Sellers’ written notice of
such Condemnation, to (A) terminate this Agreement, in which case (i) the Deposit (or in the event of a Material Condemnation prior to the expiration of the Due Diligence Period, the Initial Deposit), together with any interest earned
thereon, shall be returned to Buyer and (ii) the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (B) proceed to Closing, without terminating this
Agreement, in which case Sellers shall assign to Buyer all of Sellers’ right, title and interest in all proceeds and awards from such Condemnation (other than amounts applied by Sellers prior to Closing in connection with the repair of the
applicable Property) by delivering an assignment instrument to Buyer at Closing in form and substance reasonably satisfactory to Buyer. If Buyer fails to provide written notice of its election to Sellers within such time period, then Buyer shall be
deemed to have elected to terminate this Agreement pursuant to clause (A) of the preceding sentence. If the Closing is scheduled to occur within Buyer’s fifteen (15) day election period, then the Closing shall be postponed until the
date which is five (5) Business Days after the expiration of Buyer’s election period. 
 9.2.2    Non-Material Condemnation. In the event of any Condemnation other than a Material Condemnation, Buyer shall not have the right to terminate this Agreement, but shall proceed to Closing, in which case Sellers
shall assign to Buyer all of Sellers’ right, title and interest in all proceeds and awards from such Condemnation (other than amounts applied by Sellers prior to Closing in connection with the repair of the applicable Property) by delivering an
assignment instrument to Buyer at Closing in form and substance reasonably satisfactory to Buyer. 
 9.3    The
provisions of this Article IX shall survive Closing or any termination of this Agreement. 

  

					
		 	23	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 ARTICLE X 

COVENANTS 

10.    Covenants. 

10.1    Governmental and Other Third Party Licenses, Consents and Approvals. Sellers and Buyer acknowledge that the
transactions contemplated under this Agreement include the continued operation of the each of the Properties by the Manager from and after the Closing Date. To that end, Sellers agree that it shall cause Manager to maintain, with respect to each
Project, all licenses, permits, approvals and consents from the Utah Department of Health Facility Licensing Certification and Resident Assessment (“UDHFLCRA”) under the provisions of Utah licensing law Title 26, Chapter 2l Utah Law
(the “Health Care Facility Licensing and Inspection Act”) issued to Manager (each, a “Manager License”), in compliance with the rules and regulations promulgated
thereunder, including without limitation Utah Administrative Rule 432-2-12, allowing each Project to continue to be operated as an assisted living facility of the type
currently shown in each respective Manager License as of the Effective Date, from and after the Closing Date. Buyer shall have received, on or before the date three (3) Business Days prior to the Closing Date, with respect to each Project, all
licenses, permits, approvals and consents required from UDHFLCRA under the provisions of the Health Care Facility Licensing and Inspection Act issued to Buyer (each, a “Buyer License”), in compliance with and the rules and
regulations promulgated thereunder, including without limitation Utah Administrative Rule 432-2-12, allowing each Project to continue to be operated as an assisted
living facility from and after the Closing Date. Buyer agrees to submit Buyer’s complete application for each Buyer License to the Utah Department of Health no later than thirty five (35) days prior to the Closing Date. Buyer assumes sole
responsibility for satisfactorily completing all applications for the Buyer Licenses and obtaining the same. 

10.2    Ongoing Operations. Each Seller covenants and agrees that from the Effective Date until the Closing Date:

 10.2.1    Preservation of Business. Except as set forth on Schedule 10.2.1, such Seller shall use
commercially reasonable efforts to cause Manager to (i) operate the applicable Property in the ordinary and usual course of business and consistent with past practice; (ii) preserve intact the applicable Property subject to reasonable wear
and tear; (iii) preserve the good will and advantageous relationships of such Seller with residents, tenants, customers, suppliers, independent contractors, employees and other persons or entities material to the operation of its business;
(iv) perform its obligations under Leases, Resident Agreements and other agreements affecting the applicable Property; and (v) not take any action or omission which would cause any of the representations or warranties of such Seller
contained herein to become inaccurate or any of the covenants of such Seller to be breached. 

10.2.2    Maintenance of Insurance. Such Seller shall use commercially reasonable efforts to cause Manager to
continue to carry its existing insurance through the Closing Date, and will not allow any breach, default, termination or cancellation of such insurance policies or agreements to occur or exist, unless such insurance is replaced by replacement
insurance on substantially similar terms to such terminated or canceled insurance. 
 10.2.3    New Contracts.
From and after the expiration of the Due Diligence Period, without Buyer’s prior written consent in each instance, which shall not be unreasonably withheld, such Seller shall not, and shall not permit Manager to, terminate, waive any default
under, or grant concessions regarding any of the existing Equipment Leases or Operating Agreements, nor to enter into any new agreement to provide or receive services to or 

  

					
		 	24	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
at the applicable Property, or that otherwise affects such Property or the businesses at the applicable Project, in each case if the same may not be terminated within thirty (30) days after
the end of the month in which the Closing occurs at Buyer’s election and without any cost to Buyer except the reasonable and necessary fair market value of services during the period between the Closing and the earlier of the termination date
or the end of the month after the month in which the Closing occurs. At Buyer’s request, the applicable Seller shall assist Buyer in obtaining new Operating Agreements with the division-wide vendors and suppliers listed on Schedule 1.9,
which are classified as Excluded Contracts, provided that failure to receive such new Operating Agreements shall not constitute a breach of this Agreement by any Seller or otherwise give rise to a right of Buyer to terminate this Agreement or pursue
any other remedies against the applicable Seller. Notwithstanding the foregoing, the provisions of this Section 10.2.3 shall not apply to any Leases or Resident Agreements. 

10.2.4    Leasing Arrangements. From and after the expiration of the Due Diligence Period, such Seller shall not
enter into any Lease that may not be terminated within thirty (30) days after the end of the month in which the Closing occurs, at Buyer’s election and without any cost to Buyer, nor shall such Seller amend, terminate, waive any default
under, grant concessions regarding, or incur any obligation for leasing commissions or otherwise in connection with any Lease, in each case, without Buyer’s prior written consent, which shall not be unreasonably withheld. Notwithstanding the
foregoing, the provisions of this Section 10.2.4 shall not apply to any Resident Agreements. 

10.2.5    Resident Agreements. No Seller shall, subsequent to the expiration of the Due Diligence Period, without
Buyer’s prior written consent, (a) enter into any new residency agreement for a unit with a first-time resident unless the residency agreement is for a period of no more than one year and has an effective rental rate consistent with such
Seller’s current practice; or (b) enter into, amend, renew or extend any Resident Agreement with an existing resident unless the Resident Agreement is for a period of not more than one year and has an effective rental rate for the amended,
renewal or extension term consistent with such Seller’s current practice; or (c) terminate any Resident Agreement except by reason of a default by the resident thereunder or by reason of the provisions contained in the Resident Agreement.

 10.2.6    Removal and Replacement of Tangible Personal Property. Such Seller shall not, and shall not permit
Manager to, remove any material Tangible Personal Property (other than as is prudent in the ordinary course of operating the applicable Property) unless it is replaced with a comparable item of equal quality and quantity as existed as of the time of
such removal. 
 10.2.7    Maintenance of Licenses and Notices of Survey. In furtherance of, and not in
limitation of Section 10.1, each Seller shall, and shall cause the Manager to, maintain in existence the applicable Manager License and all other material licenses, permits and approvals appropriate to the ownership, operation or improvement of
the applicable Project or necessary for such Seller or Manager to operate senior living facilities at the applicable Property. From the Effective Date hereof until the Closing Date, Sellers shall promptly notify Buyer of any regulatory survey
occurring at the Properties by UDHFLCRA or any other Governmental Authority having jurisdiction over the Properties. Furthermore, Sellers shall promptly notify Buyer of any of the following of which UDHFLCRA or any other Governmental Authority

  

					
		 	25	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
provides Sellers with notice after the Effective Date: (a) any deficiencies identified by any such regulatory survey; (b) any applicable fines imposed on Sellers or Manager in
connection with any such regulatory survey; and (c) any threatened or pending revocation, suspension, termination, probation, restriction, limitation or non-renewal of any of the Manager Licenses, permits
and approvals which are necessary for the continued operation of each Property as a senior living community. 

10.2.8    Additional Encumbrances. Neither Buyer nor such Seller shall grant or cause, and shall not permit or
suffer to exist, any new Liens affecting the applicable Property or any portion thereof from the Effective Date until the Closing Date. 

10.2.9    Cooperation with Buyer’s Auditors and SEC Filing Requirements. For the period of time commencing on
the Effective Date and continuing through the first (1st) anniversary of the Closing Date, Sellers shall, from time to time, upon reasonable advance notice from Buyer, (a) provide Buyer and its representatives, agents and employees with access
to all financial and other information pertaining to the period of the applicable Seller’s ownership and operation of each Property, which information is relevant and reasonably necessary, in the reasonable opinion of Buyer’s outside,
third party accountants (the “Accountants”), to enable Buyer and its Accountants to prepare financial statements in compliance with any or all of (i) Rule 3-14 of Regulation S-X of the Securities and Exchange Commission (the “SEC”), (ii) any other rule issued by the SEC and applicable to Buyer or its affiliates, and (iii) any registration statement, report or
disclosure statement filed with the SEC by, or on behalf of Buyer or its affiliates and (b) reasonably cooperate with and provide reasonable assistance to Buyer and the Accountants in completing an audit of such financial statements, including,
without limitation, providing Buyer’s auditor with an executed letter of representation in the form attached hereto as Exhibit G (the “Representation Letter”); provided, however, that in any such event(s),
Buyer shall reimburse Sellers for any reasonable actual, third party out-of-pocket costs and expenses that Sellers incur in order to comply with the foregoing
requirement. The provisions of this Section 10.2.9 shall survive Closing; provided, further that Sellers and Buyer acknowledge and agree that the Representation Letter is not intended to expand, extend, supplement or increase the
representations and warranties made by Sellers to Buyer pursuant to the terms and provisions of this Agreement or to expose Sellers to any risk of Liability to third parties. 

ARTICLE XI 
 REPRESENTATIONS AND
WARRANTIES 
 11.    Representations and Warranties. 

11.1    Representations and Warranties of Sellers. Each Seller hereby represents and warrants to Buyer that: 

11.1.1    Corporate Organization. Such Seller is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization 
 11.1.2    Power and Authority; Authorization;
Enforceability. Such Seller has all necessary corporate, partnership or similar power and authority to own and operate its 

  

					
		 	26	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
respective properties and assets and to carry on its business as and where such is now being conducted, including the Property owned by such Seller. Such Seller has all necessary corporate,
partnership or similar power and authority to enter into the documents and instruments to be executed and delivered by such Seller pursuant hereto and to carry out the transactions contemplated hereby. The execution and delivery of this Agreement,
and the items to be delivered by such Seller at the Closing, and the performance of this Agreement by such Seller has been duly and validly authorized. This Agreement constitutes the legal, valid and binding obligation of such Seller, enforceable
against such Seller in accordance with its terms. 
 11.1.3    Qualifications. Each Seller is duly qualified to
do business in the State of Utah, and is in good standing in the State of Utah. 
 11.1.4    No Conflicts or
Violation. Neither the execution and delivery of this Agreement or the other items to be delivered by such Seller at the Closing, the consummation of the transactions contemplated hereby and thereby by such Seller, nor the fulfillment of the
terms hereof by such Seller or the Manager shall: (i) except as set forth on Schedule 11.1.4, violate or result in a breach of any of the material terms and provision of, constitute a default under, conflict with, or result in any
acceleration of rights, benefits or obligations of any party under any material contract to which such Seller and/or Manager is a party or by which it is bound; (ii) materially violate any order of any Governmental Authority applicable to such
Sellers and/or Manager; (iii) result in the creation of any Lien or encumbrance upon any of the Properties pursuant to any such contract described in clause (i) above except pursuant to this Agreement; (iv) constitute a material
violation by such Seller of any applicable Law; (v) except as set forth on Schedule 11.1.4, to such Seller’s knowledge, subject to the terms of the applicable Existing Management Agreement and customary governmental approval
processes in the applicable jurisdiction with respect to the re-issuance of any licenses, permits, approvals or other authorizations in a purchaser’s name, result in the breach of any material terms of,
or constitute a material default under or otherwise cause a material impairment of the licenses and any other permits, approvals and governmental authorizations held by such Seller and/or the Existing Manager or (vi) conflict with or violate
any organizational document of such Seller. HCP S-H MRE/HCP PropCo Member, LLC (“HCP”) has waived its right to acquire each Property pursuant to that certain Amended and Restated Limited
Liability Company Agreement of S-H MRE/HCP Propco Ventures LLC dated March 30, 2015, by and between MRE Senior Joint Venture #1 LLC, as
successor-by-assignment to the rights of MBK Senior Living LLC, and HCP. 

11.1.5    General Compliance. Except as disclosed in the Property Information or in Schedule 11.1.5 hereto,
such Seller (i) has not received any written notice from any Governmental Authority that the applicable Property is not in compliance with applicable Laws other than notices of non-compliance that have
been remedied and (ii) has not received any written notice of any pending, threatened or contemplated actions by any Governmental Authority having the power of eminent domain which might result in any part of the applicable Property being taken
by condemnation or being conveyed in lieu thereof. Except as disclosed on Schedule 11.1.5, to such Seller’s knowledge, the physical structure and operation of the applicable Property is in material compliance with all Laws applicable to
it. To such Seller’s knowledge, and except as disclosed in the Property Information or in Schedule 11.1.5 hereto, there is no: (1) judicial, regulatory or Governmental Authority order requiring any material

  

					
		 	27	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
repair, alteration or correction of any existing physical condition affecting the Properties that has not already been remedied; or (2) underground storage tanks at any of the Properties,
except as otherwise set forth in any environmental report obtained by Buyer or delivered by such Seller to Buyer. 

11.1.6    [Intentionally Omitted]. 

11.1.7    Resident Agreements. As of the Effective Date, there are no residency agreements, leases, subleases,
licenses or other rental agreements or occupancy agreements (written or verbal) which grant any possessory interest in and to any space situated on or in the Improvements other than the Resident Agreements described in Schedule 11.1.7
attached hereto (the “Rent Roll”). The Rent Roll is the rent roll that such Seller uses and relies upon in its operation of the Property. 

11.1.8    Leases, Equipment Leases and Operating Agreements. Except as set forth on Schedule 11.1.8, true,
correct and complete copies of all of the Leases, Equipment Leases and Operating Agreements (including all amendments and modifications thereto) relating to the applicable Property have been delivered to Buyer. Except as set forth on Schedule
11.1.8, each of the applicable Leases, Equipment Leases and Operating Agreements is a valid and binding agreement of such Seller, and to such Seller’s knowledge, of the other parties thereto, in full force and effect and enforceable against
such Seller and, to such Seller’s knowledge, against the other parties thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, arrangement, moratorium and other similar state or federal debt relief
laws from time to time in effect and to general principles of equity. To such Seller’s knowledge, there is no material default under any of the Leases, Equipment Leases or Operating Agreements relating to the applicable Property. 

11.1.9    Litigation. Other than litigation disclosed in Schedule 11.1.9 hereto, and except for resident or
tenant collection actions, if any, and tort claims, if any, which are covered by insurance, to such Seller’s knowledge, there is no pending (nor has such Seller received any written notice within the last 12 months of any threatened) action,
litigation, condemnation or other legal proceeding against the applicable Property or against such Seller with respect to such Property. 

11.1.10     OFAC Laws, Anti-Money Laundering Laws and FIRPTA. Such Seller (i) is not listed on any Government
Lists, (ii) is not the target of any OFAC Laws, (iii) is not in violation of any OFAC Laws or Anti-Money Laundering Laws, and (iv) is not a “foreign person” as that term is defined in the Code and the regulations promulgated
pursuant thereto, and Buyer has no obligation under Code Section 1445 to withhold and pay over to the IRS any part of the amount realized by such Seller in the transaction contemplated hereby (as such term is defined in the regulations issued
under Code Section 1445). 
 11.1.11     Environmental Matters. Except as disclosed on Schedule
11.1.11, such Seller (i) to Seller’s knowledge, is in material compliance with all applicable Environmental Laws to the extent applicable to the applicable Property and (ii) has not received written notice from any governmental
entity alleging that it is in material violation of any applicable Environmental Laws with respect to any Property which has not been cured or remedied prior to the Effective Date. 

  

					
		 	28	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 11.1.12    Title to Personal Property. Such Seller has good title or
leasehold interest to all of the Tangible Personal Property owned or leased by such Seller, and at the Closing, such Seller shall transfer such Tangible Personal Property to Buyer, free and clear of all liabilities, liens and, encumbrances except
for the Permitted Exceptions. 
 11.1.13    Permits and Licenses. Such Seller or Manager holds, owns or
possesses all material permits, licenses, certificates and authorizations required to conduct the business at the applicable Property as currently conducted and that relate to the ownership, use, operation or management of the applicable Property
(the “Permits”). Such Seller has made available to Buyer true and correct copies of the Permits listed on Schedule 11.1.13. To such Seller’s knowledge, such Permits are valid and in full force and effect. Except as
described on Schedule 11.1.13, such Seller has received no written notice of any uncured material deficiency or violation of any term or condition of such Permits from any Governmental Authority, nor to the knowledge of such Seller does there
exist any uncured material default under any of the Permits.  
 11.1.14    Provider Agreements.
Cottonwood MSL’s, Wellington MSL’s and/or Manager’s operations at each Property owned by Cottonwood MSL and Wellington MSL (collectively, the “Medicaid Properties,” and each, a “Medicaid
Property”) are duly certified to participate, and do participate, in the Medicaid program (the “Program”). All provider numbers related to Cottonwood MSL’s, Wellington MSL’s and/or Manager’s existing
Medicaid contracts with respect to each Medicaid Property (the “Program Agreements”) are included on Schedule 11.1.14 attached hereto. Cottonwood MSL’s, Wellington MSL’s and/or Manager’s operations at
each Medicaid Property are and will be at the time of Closing in material compliance with all of the terms, conditions and provisions of such Program Agreements, as well as all Laws related thereto. 

11.2    Representations and Warranties of Buyer. Buyer hereby represents and warrants to Sellers that: 

11.2.1    Corporate Organization. Buyer is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization. 
 11.2.2    Power and Authority; Authorization;
Enforceability. Buyer has all necessary corporate, partnership or similar power and authority to own and operate its respective properties and assets, to carry on its business as and where such is now being conducted, to enter into the documents
and instruments to be executed and delivered by Buyer pursuant hereto and to carry out the transactions contemplated hereby. The execution and delivery of this Agreement, and the items to be delivered by Buyer at the Closing, and the performance of
this Agreement has been duly and validly authorized. This Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its term. 

11.2.3    Qualifications. Buyer is duly qualified or licensed to do business, and is in good standing, in the
State of Utah. 

  

					
		 	29	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 11.2.4    No Conflicts or Violations. Neither the execution and
delivery of this Agreement or the other items to be delivered by Buyer at the Closing, the consummation of the transactions contemplated hereby and thereby by Buyer, nor the fulfillment of the terms hereof by Buyer shall: (i) violate or result
in a breach of any of the material terms and provisions of, constitute a default under, conflict with, or result in any acceleration of rights, benefits or obligations of any party under any contract to which Buyer is a party or by which it is
bound; (ii) materially violate any order of any Governmental Authority applicable to Buyer; (iii) constitute a material violation by Buyer of any applicable Law; or (iv) conflict with or violate any organizational document of Buyer.

 11.2.5    Employee Benefit Plan. Buyer is not an “employee benefit plan” as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), a “plan” as defined in and subject to Section 4975 of the Code, or an entity deemed to hold “plan assets” of
either of the foregoing. Buyer is not a “governmental plan” as defined in Section 3(32) of ERISA and is not subject to state statutes regulating investments of and fiduciary obligations with respect to government plans which would be
violated by the transactions contemplated by this Agreement. 
 11.2.6    OFAC Laws and Anti-Money Laundering
Laws. Buyer (i) is not listed on any Government Lists, (ii) is not the target of any OFAC Laws, and (iii) is not in violation of any OFAC Laws or Anti-Money Laundering Laws. Buyer has no reason to believe that this transaction,
including, without limitation, the source of its funds, would result in a violation of OFAC Laws or Anti-Money Laundering Laws. 

11.3    Survival. The representations and warranties set forth in this Article XI are made as of the Effective Date
and are remade as of the Closing Date. Sellers’ Liability and Buyer’s Liability with respect to any representations and warranties under this Agreement shall survive the Closing for a period (the “Survival Period”)
of twelve (12) months. Unless expressly provided herein, no other obligations of the Sellers regarding this Agreement, except for the reprorations described in Section 8.2.10, shall survive the Closing. 

11.4    Buyer’s Knowledge. Notwithstanding anything to the contrary in this Agreement, Sellers shall have no
Liability, and Buyer shall make no claim against any Seller, for (and Buyer shall be deemed to have waived any failure of a condition hereunder by reason of) a failure of any condition or a breach of any representation or warranty, covenant or other
obligation of any Seller under this Agreement (including for this purpose any matter that would have constituted a breach of any Seller’s representations and warranties had they been made on the Closing Date) if (a) the failure or breach
in question constitutes or results from a condition, state of facts or other matter that was known or disclosed to Buyer prior to the expiration of the Due Diligence Period, or (b) the failure or breach in question constitutes or results
from a condition, state of facts or other matter that was known or disclosed to Buyer prior to Closing and Buyer proceeds with the Closing. 

11.5    Knowledge. 

11.5.1    Definition. When a statement is made under this Agreement to the “knowledge” of a party
(or other similar phrase), it shall mean that none of the Designated 

  

					
		 	30	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
Representatives of such party has any actual knowledge (without further investigation) of any facts indicating that such statement is not true. Each Designated Representative shall be deemed to
have actual knowledge of any matter received by such Designated Representative in writing, and the Buyer Designated Representatives shall be deemed to have actual knowledge of all matters contained in the Data Room or otherwise obtained by or on
behalf of Buyer in connection with Buyer’s due diligence pursuant to this Agreement. None of the Designated Representatives shall have any personal liability under this Agreement. 

11.5.2    Designated Representatives. The “Designated Representatives” are limited to the
following individuals: 
  

	 	(a)	for Sellers : Jeff Fischer and Rob Henderson; and 

  

	 	(b)	for Buyer : John Strockis and Kyle Stiff. 

 ARTICLE XII 

CONDITION OF THE PROPERTIES 

12.    CONDITION OF THE PROPERTIES. AS AN ESSENTIAL INDUCEMENT TO SELLERS TO ENTER INTO THIS AGREEMENT,
AND AS PART OF THE DETERMINATION OF THE PURCHASE PRICE, BUYER ACKNOWLEDGES AND AGREES, THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT: 

12.1    DISCLAIMER. 

12.1.1    AS-IS;
WHERE-IS. EXCEPT AS SET FORTH IN THE SELLERS’ REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 11, THE SALE OF EACH OF THE PROPERTIES HEREUNDER IS AND WILL BE MADE ON AN “AS IS, WHERE IS”
BASIS AND SHALL BE WITHOUT WARRANTY OF INCOME POTENTIAL, FUTURE OPERATING EXPENSES, USES, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONDITION. SELLERS HAVE NOT MADE, DO NOT MAKE AND SPECIFICALLY NEGATE AND DISCLAIM ANY REPRESENTATIONS,
WARRANTIES OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE OF, AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTIES OR ANY OTHER MATTER WHATSOEVER, EXCEPT IN EACH CASE FOR THE
REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT. BUYER SPECIFICALLY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY PROVIDED HEREIN, BUYER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM ANY
SELLER OR ANY REPRESENTATIVE OR AGENT OF ANY SELLER OR ANY MSL PARTY AS TO ANY MATTER CONCERNING ANY PROPERTY, INCLUDING WITHOUT LIMITATION: (1) THE CONDITION OR SAFETY OF SUCH PROPERTY (FOR OPERATION OR INSPECTION), INCLUDING, BUT NOT LIMITED
TO, PLUMBING, SEWER, 

  

					
		 	31	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
HEATING AND ELECTRICAL SYSTEMS, ROOFING, AIR CONDITIONING, AND FOUNDATIONS; (2) THE CONDITION OF THE SOILS AND GEOLOGY, INCLUDING THE EXISTENCE OR NONEXISTENCE OF HAZARDOUS MATERIALS AND
COMPLIANCE WITH LAWS RELATING TO HAZARDOUS MATERIALS; (3) WHETHER THE IMPROVEMENTS OR PERSONAL PROPERTY ARE IN WORKING ORDER; (4) THE CONDITION, HABITABILITY OR SUITABILITY FOR OCCUPANCY OF ANY STRUCTURE AND THE QUALITY OF ITS
CONSTRUCTION; (5) THE FITNESS OR MERCHANTABILITY OF ANY PERSONAL PROPERTY; (6) WHETHER THE IMPROVEMENTS ARE STRUCTURALLY SOUND, IN GOOD CONDITION, OR IN COMPLIANCE WITH APPLICABLE CITY, COUNTY, STATE OR FEDERAL STATUTES, CODES OR
ORDINANCES; (7) THE FUTURE STATUS OF THE RESIDENT AGREEMENTS, LEASES OR OPERATING AGREEMENTS; OR (8) WHETHER SUCH PROPERTY COMPLIES WITH ANY DISABILITY OR HANDICAP ACTS, LAWS, RULES, REGULATIONS OR GUIDELINES. ANY REPORTS, REPAIRS OR WORK
REQUIRED BY BUYER ARE TO BE THE SOLE RESPONSIBILITY OF BUYER AND BUYER AGREES THAT THERE IS NO OBLIGATION ON THE PART OF ANY SELLER TO MAKE ANY CHANGES, ALTERATIONS OR REPAIRS TO ANY PROPERTY. 

12.1.2    SOPHISTICATION OF BUYER. BUYER IS A SOPHISTICATED BUYER WHO IS FAMILIAR WITH THE OWNERSHIP AND
OPERATION OF PROJECTS SIMILAR TO THE PROPERTIES, AND BUYER HAS ACCESS TO AND HAS ACTUALLY RETAINED THE SERVICES OF ATTORNEYS, ADVISORS, CONSULTANTS, ACCOUNTANTS, INSPECTORS, AND OTHER AGENTS NECESSARY TO INFORM BUYER AS TO ALL MATERIAL ISSUES
RELATING TO THE ENTRY INTO THIS AGREEMENT, AND BUYER HAS HAD ADEQUATE OPPORTUNITY OR WILL HAVE ADEQUATE OPPORTUNITY PRIOR TO CLOSING (BUYER’S DELIVERY OF AN APPROVAL NOTICE PURSUANT TO SECTION 6.4 SHALL CONSTITUTE AN ACKNOWLEDGMENT BY BUYER
THAT IT HAS HAD SUCH AN OPPORTUNITY) TO COMPLETE ALL PHYSICAL AND FINANCIAL EXAMINATIONS RELATING TO THE ACQUISITION OF THE PROPERTIES HEREUNDER THAT IT DEEMS NECESSARY, AND WILL ACQUIRE THE SAME SOLELY ON THE BASIS OF AND IN RELIANCE UPON SUCH
EXAMINATIONS AND THE TITLE INSURANCE PROTECTION AFFORDED BY THE TITLE POLICIES AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY SELLER OR ANY MSL PARTY. 

12.1.3    DUE DILIGENCE MATERIALS. ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE
PROPERTIES IS SOLELY FOR BUYER’S CONVENIENCE AND WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES. NO SELLER HAS MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND SELLERS MAKE NO (AND EXPRESSLY DISCLAIM ALL)
REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. EXCEPT AS SET FORTH IN THE SELLERS’ REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 11, SELLERS SHALL NOT BE LIABLE FOR ANY MISTAKES, OMISSIONS, MISREPRESENTATIONS OR
ANY FAILURE TO INVESTIGATE THE 

  

					
		 	32	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
PROPERTIES NOR SHALL ANY SELLER BE BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, APPRAISALS, ENVIRONMENTAL ASSESSMENT REPORTS, OR OTHER INFORMATION PERTAINING TO THE
PROPERTIES OR THE OPERATION THEREOF, FURNISHED BY ANY SELLER. 
 12.2    RELEASE. SUBJECT TO
SECTION 12.3, BELOW, EFFECTIVE AS OF THE CLOSING, BUYER HEREBY RELEASES EACH SELLER AND ALL MSL PARTIES FROM ALL CLAIMS THAT BUYER OR ANY PARTY CLAIMING BY, THROUGH OR UNDER BUYER HAS OR MAY HAVE AS OF CLOSING ARISING FROM OR RELATED TO ANY MATTER
OR THING RELATED TO OR IN CONNECTION WITH ANY PROPERTY, INCLUDING THE PROPERTY INFORMATION, THE LEASES, THE RESIDENT AGREEMENTS AND THE TENANTS AND RESIDENTS THEREUNDER, ANY CONSTRUCTION DEFECTS, ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION AND
ANY ENVIRONMENTAL CONDITIONS, AND BUYER SHALL NOT LOOK TO ANY SELLER OR ANY MSL PARTY IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER HEREBY RELEASES EACH SELLER AND EACH MSL PARTY
FROM ANY AND ALL LIABILITY, COST AND EXPENSE (INCLUDING, WITHOUT LIMITATION, ATTORNEY’S FEES AND EXPENSES) ARISING FROM ANY INJURY OR LOSS SUSTAINED BY BUYER IN CONNECTION WITH ANY INSPECTION, EXCEPT TO THE EXTENT CAUSED BY ANY SELLER’S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS, INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION AND, IN THAT
REGARD, BUYER HEREBY EXPRESSLY WAIVES ALL RIGHTS AND BENEFITS IT MAY NOW HAVE OR HEREAFTER ACQUIRE UNDER CALIFORNIA CIVIL CODE SECTION 1542 WHICH PROVIDES: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

  /s/
HMS                           

INITIALS OF BUYER 

12.3    NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NOTHING CONTAINED IN SECTION 12.2 ABOVE OR ELSEWHERE
IN THIS AGREEMENT SHALL OPERATE TO RELEASE ANY SELLER FROM ITS LIABILITY AND OBLIGATIONS IN CONNECTION WITH OR ARISING FROM (A) SUCH SELLER’S ACTUAL FRAUD, (B) SUCH SELLER’S DEFAULT OR BREACH OF SUCH SELLER’S
REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS OR OBLIGATIONS EXPRESSLY SET FORTH IN 

  

					
		 	33	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER IN CONNECTION WITH THIS AGREEMENT (INCLUDING BUT NOT LIMITED TO THE APPLICABLE NEW MANAGEMENT AGREEMENT) OR (C) ANY THIRD-PARTY CLAIM
FOR PERSONAL OR PROPERTY DAMAGE AGAINST SUCH SELLER ARISING PRIOR TO THE CLOSING. 
 12.4    SURVIVAL. THIS
ARTICLE XII SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT AND THE CLOSING. 
 ARTICLE XIII 

DEFAULT 

13.    Default. 

13.1    Default by Sellers. If, at or any time prior to Closing, any Seller fails to perform any of its covenants or
obligations under this Agreement in any material respect, which breach or default is not caused by a Buyer Default and such failure remains uncured as of the Closing Date (a “Seller Default”), then Buyer, as its sole and
exclusive remedies for such Seller Default, may elect to (i) terminate this Agreement, in which case (A) Deposit (or in the event of a Seller Default prior to the expiration of the Due Diligence Period, the Initial Deposit), together with
any interest earned thereon, shall be returned to Buyer and (B) Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (ii) proceed to Closing, in which case
Buyer shall be deemed to have waived such Seller Default. Notwithstanding the foregoing, in the event Closing does not occur due to a Seller Default under this Agreement, then Buyer shall be entitled to commence appropriate legal proceedings seeking
to enforce each Seller’s obligation to convey the applicable Property through specific performance. The provisions of this 13.1 shall survive Closing or any termination of this Agreement. 

13.2    Default by Buyer. IN THE EVENT CLOSING DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF ANY MATERIAL DEFAULT
OF BUYER FOLLOWING THE EXPIRATION OF THE DUE DILIGENCE PERIOD AND SUCH DEFAULT REMAINS UNCURED AS OF THE CLOSING DATE (A “BUYER DEFAULT”), BUYER AND SELLERS AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO
ESTIMATE THE DAMAGES WHICH SELLERS MAY SUFFER. THEREFORE BUYER AND SELLERS DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLERS WOULD SUFFER IN THE EVENT THAT BUYER MATERIALLY DEFAULTS FOLLOWING THE EXPIRATION OF THE
DUE DILIGENCE PERIOD AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTIES IS AND SHALL BE AN AMOUNT EQUAL TO THE DEPOSIT, TOGETHER WITH THE ACCRUED INTEREST THEREON; AND, AS SELLERS’ SOLE AND EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY), SAID
AMOUNT SHALL BE DISBURSED TO SELLERS AS THE FULL, AGREED AND LIQUIDATED DAMAGES FOR A MATERIAL BREACH OF THIS AGREEMENT BY 

  

					
		 	34	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
BUYER FOLLOWING THE EXPIRATION OF THE DUE DILIGENCE PERIOD WHICH RESULTS IN CLOSING NOT OCCURRING, ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES IN RESPECT OF BUYER’S MATERIAL BREACH OF THIS
AGREEMENT FOLLOWING THE EXPIRATION OF THE DUE DILIGENCE PERIOD BEING HEREIN EXPRESSLY WAIVED BY SELLERS. SUCH PAYMENT OF THE DEPOSIT IS NOT INTENDED AS A PENALTY, BUT AS FULL LIQUIDATED DAMAGES. NOTHING CONTAINED IN THIS SECTION SHALL LIMIT ANY
SELLER’S RIGHT TO RECEIVE REIMBURSEMENT FOR COSTS AND EXPENSES PURSUANT TO SECTION 14.11 BELOW, NOR WAIVE OR AFFECT BUYER’S INDEMNITY AND CONFIDENTIALITY OBLIGATIONS THAT EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT. BY THEIR
SEPARATELY INITIALING THIS SECTION 13.2 BELOW, BUYER AND EACH SELLER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTOOD THE ABOVE PROVISION COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF
THIS LIQUIDATED DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED. THE PROVISIONS OF THIS SECTION 13.2 SHALL SURVIVE CLOSING OR ANY TERMINATION OF THIS AGREEMENT. 

 

							
		 	 /s/
HMS                      
	 	   /s/
JF                                         
           
	 	
		 	BUYER’S INITIALS	 	WELLINGTON MSL’S INITIALS	 	
				
		 		 	   /s/
JF                                         
           
	 	
		 		 	COTTONWOOD MSL’S INITIALS	 	
				
		 		 	  /s/
JF                                         
            	 	
		 		 	CEDAR HILLS MSL’S INITIALS	 	

 ARTICLE XIV 

MISCELLANEOUS 

14.    Miscellaneous. 

14.1    Brokers. Sellers represent and warrant to Buyer that no broker or finder has been engaged by it, in
connection with the sale contemplated by this Agreement other than Blueprint HCRE (“Sellers’ Broker”). Buyer represents and warrants to Sellers that no broker or finder has been engaged by it, in connection with the sale
contemplated by this Agreement. In the event of a claim for broker’s or finder’s fee or commissions in connection with the sale contemplated by this Agreement, then Sellers shall indemnify, defend and hold harmless Buyer from the same if
it shall be based upon any statement or agreement alleged to have been made by Sellers, and Buyer shall indemnify, defend and hold harmless Sellers from the same if it shall be based upon any statement or agreement alleged to have been made by
Buyer. Without limiting the foregoing, Sellers shall pay the commission of Sellers’ Broker, whose commission shall be paid pursuant to a separate agreement between Sellers and Sellers’ Broker. 

  

					
		 	35	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 14.2    Limitation of Liability. 

14.2.1    Notwithstanding anything to the contrary contained herein, the direct and indirect shareholders, partners,
members, trustees, officers, directors, employees, agents and security holders of the Parties are not assuming any, and shall have no, personal Liability for any obligations of the Parties hereto under this Agreement. 

14.2.2    Notwithstanding anything to the contrary contained herein, if the Closing of the transactions hereunder shall
have occurred, no Seller shall have Liability to Buyer (and Buyer shall make no claim against any Seller) for a breach of any representation or warranty or any other covenant, agreement or obligation of any Seller, or for indemnification, under this
Agreement or any document executed by any Seller in connection with this Agreement, unless (a) the valid claims for all such breaches and indemnifications collectively aggregate to more than Seventy-Five Thousand Dollars ($75,000.00) (in which
case Buyer shall be entitled to recover all amounts below such “floor”), and (b) the aggregate Liability of Sellers under this Agreement and such documents shall not exceed, in the aggregate, two percent (2%) of the Purchase Price. In
no event shall any Seller be liable for any consequential or punitive damages. In connection with any action alleging a breach of any warranty or covenant of title in the Deed, Buyer agrees that it shall in good faith pursue the Title Company under
its Title Policy(ies) with respect to such claim prior to bringing an action against any Seller. 
 14.2.3    The
limitations of Liability contained in this Section 14.2 are in addition to, and not in limitation of, any limitation on Liability provided elsewhere in this Agreement or by Law or by any other contract, agreement or instrument. 

14.3    Exhibits; Entire Agreement; Modification. All exhibits attached and referred to in this Agreement are
hereby incorporated herein as if fully set forth in (and shall be deemed to be a part of) this Agreement. This Agreement contains the entire agreement between the Parties respecting the matters herein set forth and supersedes all prior agreements
between the Parties hereto respecting such matters. This Agreement may not be modified or amended except by written agreement signed by both Parties. 

14.4    Time of the Essence. Time is of the essence of this Agreement. However, whenever action must be taken
(including the giving of notice or the delivery of documents) under this Agreement during a certain period of time (or by a particular date) that ends (or occurs) on a non-Business Day, then such period (or
date) shall be extended until the immediately following Business Day. Unless expressly indicated otherwise, (a) all references to time in this Agreement shall be deemed to refer to local time at the Real Property, and (b) all time periods
provided for under this Agreement shall expire at 5:00 p.m. local time at the Real Property. 

14.5    Interpretation. Section headings shall not be used in construing this Agreement. Each Party acknowledges
that such Party and its counsel, after negotiation and consultation, have reviewed and revised this Agreement. As such, the terms of this Agreement shall be fairly construed and the usual rule of construction, to the effect that any ambiguities
herein should be resolved against the drafting Party, shall not be employed in the interpretation of this Agreement or any amendments, modifications or exhibits hereto or thereto. The words “herein”, “hereof”,
“hereunder”, “hereby”, “this Agreement” and other similar references shall be construed to mean and include this Agreement and all amendments and supplements hereto 

  

					
		 	36	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 
unless the context shall clearly indicate or require otherwise. Whenever the words “including”, “include” or “includes” are used in this Agreement, they shall be
interpreted in a non-exclusive manner. Except as otherwise indicated, all Exhibit and Section references in this Agreement shall be deemed to refer to the Exhibits and Sections in this Agreement. Except as
otherwise expressly provided herein, any approval or consent provided to be given by a Party hereunder must be in writing to be effective and may be given or withheld in the sole and absolute discretion of such Party. 

14.6    Governing Law. This Agreement shall be construed and enforced in accordance with the Laws of the State of
Utah. 
 14.7    HIPAA Compliance. To the extent that any of the records at any Property include medical
information regarding any of the residents, Buyer shall cause its agents, servants, employees, consultants and contractors to respect the privacy thereof and to comply with all applicable Laws including, but not limited to, the Health Insurance
Portability and Accountability Act of 1996. 
 14.8    Successors and Assigns. Except as set forth in
Section 2.11, Buyer may not assign or transfer any of its rights or obligations under this Agreement either directly or indirectly (whether by outright transfer, transfer of ownership interests or otherwise) without the prior written consent of
Sellers. In the event of any assignment or transfer by Buyer that is consented to by Sellers, such transferor shall not be released from its obligations hereunder. No consent given by Sellers to any transfer or assignment of Buyer’s rights or
obligations hereunder shall be construed as a consent to any other transfer or assignment of Buyer’s rights or obligations hereunder. No transfer or assignment in violation of the provisions hereof shall be valid or enforceable. Subject to the
foregoing, this Agreement and the terms and provisions hereof shall inure to the benefit of and be binding upon the successors and assigns of the Parties. 

14.9    Notices. All notices, demands and communications permitted or required to be given hereunder shall be in
writing, and shall be delivered (i) personally, (ii) by United States registered or certified mail, postage prepaid, (iii) by Federal Express or other reputable courier service regularly providing evidence of delivery (with charges paid by
the party sending the notice), or (iv) by facsimile or a PDF or similar attachment to an email. Any such notice to a Party shall be addressed at the address set forth below (subject to the right of a party to designate a different address for
itself by notice similarly given): 
  

			
	To Seller:	 	 Wellington MSL LLC, Cottonwood Creek MSL LLC,

and Cedar Hills MSL, LLC
 c/o MBK Senior Living

4 Park Plaza, Suite 400,
 Irvine, California 92614

Attention:             Jeff Fischer

Telephone:           (949) 242-1480

Facsimile:            (949) 242-1480

Email:                  JeffFischer@mbk.com

  

					
		 	37	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

			
	With copy to (which shall not constitute notice):
		
		 	 Latham & Watkins LLP
 650 Town
Center Drive, 20th Floor
 Costa Mesa, California 92626-1925

Attention:             Hilary Shalla

Telephone:           (714) 755-8122

Facsimile:             (714) 755-8290

Email:                   hilary.shalla@lw.com

		
	To Buyer:	 	 SSSHT Acquisitions, LLC
 10 Terrace Road

Ladera Ranch, California 92694
 Attention:
            John Strockis
 Telephone:
          (949) 429-6600
 Facsimile:
           (949) 429-6606
 Email:
                  jstrockis@sam.com

	
	With copy to (which shall not constitute notice):
		
		 	 Sanders Rehaste Sternshein & Harvey, LLP

5316 E. Chapman Avenue
 Orange, California 92869

Attention:             Jennifer Sternshein

Telephone:           (714) 289-7070

Facsimile:             (714) 289-7071

Email:                   jennifer@srshhealthlaw.com

 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether
accepted or refused), as evidenced by printed confirmation if by facsimile (provided that if any notice or other communication to be delivered by facsimile or email attachment as provided above cannot be transmitted because of a problem affecting
the receiving Party’s computer, the deadline for receiving such notice or other communication shall be extended through the next Business Day), as shown by the addressee’s return receipt if by certified mail, and as confirmed by the
courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. local time at the Real Property or on a non-Business Day, then such notice or communication so made shall
be deemed effective on the first Business Day after the day of actual delivery. The attorneys for any Party hereto shall be entitled to provide any notice that a Party desires to provide or is required to provide hereunder. 

14.10    Third Parties. Except to the extent granted to the MSL Parties under Article XII, nothing in this
Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Person other than the Parties hereto and their respective successors and assigns, and nothing in this Agreement is
intended to relieve or discharge the obligation or Liability of any third persons to any Party to this Agreement, and no provision shall give any third parties any right of subrogation or action over or against any Party to this Agreement. 

  

					
		 	38	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 14.11    Legal Costs. The Parties hereto agree that they shall pay
directly any and all legal costs which they have incurred or shall incur on their own behalf in the preparation of this Agreement, all deeds and other agreements pertaining to this transaction and that such legal costs shall not be part of the
closing costs. In addition, if either Buyer or any Seller brings any suit or other proceeding, including an arbitration proceeding, with respect to the subject matter or the enforcement of this Agreement, the prevailing Party(ies) (as determined by
the court, agency, arbitrator or other authority before which such suit or proceeding is commenced), in addition to such other relief as may be awarded, shall be entitled to recover reasonable attorneys’ fees, expenses and costs of
investigation actually incurred. The foregoing includes attorneys’ fees, expenses and costs of investigation (including those incurred in appellate proceedings), costs incurred in establishing the right to indemnification, or in any action or
participation in, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United States Code Sections 101 et seq.), or any successor statutes. 

14.12    Further Assurances. Each Party shall, whenever and as often as it shall be requested so to do by another
Party, cause to be executed, acknowledged or delivered any and all such further instruments and documents as may be necessary or proper, in the reasonable opinion of the requesting Party, in order to carry out the intent and purpose of this
Agreement (provided the same do not increase in any material respect the costs to, or liabilities or obligations of, such Party in a manner not otherwise provided for herein). 

14.13    Severability. If any term or provision of this Agreement or the application thereof to any Person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by Law. 

14.14    Press Releases. Except as otherwise expressly permitted under Section 14.17 below, no press release
or other public disclosure regarding the terms of this Agreement or the transaction contemplated hereby shall be made without the prior written consent of Buyer and Sellers. Except as otherwise expressly permitted under Section 14.17 below,
without limitation on the foregoing, each of Buyer and Sellers shall use diligent efforts not to make any public disclosure of the Purchase Price. However, any Party shall have the right to make public disclosures required by (1) Law (but only
if such Party gives the other Parties reasonable notice and an opportunity to retain a restraining order or take other similar protective actions) or (2) the rules and regulations of the SEC. 

14.15    Tax Appeal Proceedings. 

14.15.1    Prosecution and Settlement of Proceedings. If any tax reduction proceedings in respect of any Property,
relating to any fiscal years ending prior to the fiscal year in which the Closing occurs, are pending at the time of the Closing, Sellers reserve and shall have the right to continue to prosecute and/or settle the same. If any tax reduction
proceedings in respect of any Property, relating to the fiscal year in which the Closing occurs, are pending at the time of Closing, then Sellers reserve and shall have the right to continue to prosecute and settle the same; provided, however, that
Sellers shall not settle any such proceeding without Buyer’s prior written consent, which consent shall not be unreasonably withheld or delayed. Buyer shall reasonably cooperate with Sellers in connection with the prosecution of any such tax
reduction proceedings. 

  

					
		 	39	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 14.15.2    Application of Refunds or Savings. Any refunds or savings
in the payment of taxes resulting from such tax reduction proceedings applicable to taxes payable during the period prior to the date of the Closing shall belong to and be the property of Sellers, and any refunds or savings in the payment of taxes
applicable to taxes payable from and after the date of the Closing shall belong to and be the property of Buyer; provided, however, that if any such refund creates an obligation to reimburse any tenants under any Lease for any rents or additional
rents paid or to be paid, that portion of such refund equal to the amount of such required reimbursement (after deduction of allocable expenses as may be provided in such Lease to such tenant) shall, at Sellers’ election, either (a) be
paid to Buyer and Buyer shall disburse the same to such tenants or (b) be paid by Sellers directly to the tenants entitled thereto. All attorneys’ fees and other expenses incurred in obtaining such refunds or savings shall be apportioned
between Sellers and Buyer in proportion to the gross amount of such refunds or savings payable to Sellers and Buyer, respectively (without regard to any amounts reimbursable to tenants); provided, however, that neither Sellers nor Buyer shall have
any Liability for any such fees or expenses in excess of the refund or savings paid to such Party unless such Party initiated such proceeding. 

14.15.3    Tax Regulatory Agreements. Buyer and each Seller shall cooperate in good faith and use commercially
reasonable efforts to provide the materials required in connection with the transactions contemplated by this Agreement pursuant to those certain Tax Regulatory Agreements, dated December 1, 2004, with the City of St. George, Utah (the
“City”) and U.S. Bank National Association (“US Bank”), as amended and supplemented, which have been recorded in the County Recorder’s office, with respect to the Projects owned by Cottonwood MSL and
Wellington MSL (the “Tax Regulatory Agreements”). Buyer and Sellers agree to use commercially reasonable efforts to have the Tax Regulatory Agreements terminated by an instrument in writing duly executed by the City,
US Bank and Cottonwood MSL or Wellington MSL, as applicable, pursuant to Section 8 of each Tax Regulatory Agreement, provided, however, that (i) the termination of the Tax Regulatory Agreements shall not be a condition to Closing and
(ii) a failure to cause the Tax Regulatory Agreements to be terminated shall not constitute a breach of this Agreement by the Sellers or otherwise give rise to a right of Buyer to terminate this Agreement or pursue any other remedies against
Sellers. In the event the Parties are unable to cause the Tax Regulatory Agreements to be terminated, each party shall be responsible for its own costs and expenses associated with any notices, legal opinions or other deliverables required by the
Tax Regulatory Agreements; provided, however, that Buyer and Sellers (collectively) shall each be responsible for fifty percent of all costs and expenses (i) associated with obtaining any legal opinions required from counsel to the transferee
pursuant to the Tax Regulatory Agreements, (ii) of bond counsel in connection with any legal opinion required from bond counsel pursuant to the Tax Regulatory Agreements, and (iii) charged by the City or US Bank pursuant to the Tax
Regulatory Agreements in connection with the transactions contemplated by this Agreement. 

  

					
		 	40	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 14.16    Acceptance of Deed. The acceptance of each Deed by Buyer
shall be deemed full compliance by Sellers of all of Sellers’ obligations under this Agreement except for those obligations of Sellers which are specifically stated to survive the Closing hereunder. 

14.17    Confidentiality. The terms of the transaction contemplated in this Agreement, including, without
limitation, the Purchase Price and all other financial terms, shall remain confidential and shall not be disclosed by any Party hereto without the written consent of the others except (i) to such Party’s directors, officers, partners,
employees, legal counsel, accountants, lenders, engineers, architects, brokers, financial advisors and similar professionals and consultants, to the extent such Party deems it necessary or appropriate in connection with the transaction contemplated
hereunder (and such Party shall inform each of the foregoing parties of such Party’s obligations under this Section and shall be liable for any breach of this Section 14.17 by any of such parties), or (ii) as otherwise required by Law
or regulation (including the rules and regulations of a securities exchange). Unless and until the transaction contemplated by this Agreement shall close, Buyer shall also keep confidential all documents, reports and information concerning the
Properties obtained from Sellers or through the due diligence investigation of the Properties by Buyer or its agents, except to the extent permitted by clauses (i) or (ii) above. Buyer shall not use any information provided by any Seller
concerning any of the Properties for any purpose, except in connection with the proposed acquisition. 

14.18    Counterparts; Delivery. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same document. The delivery of an executed counterpart of this Agreement by facsimile or as a PDF or similar attachment to an e-mail shall
constitute effective delivery of such counterpart for all purposes with the same force and effect as the delivery of an original, executed counterpart. 

14.19    Tax Deferred Exchange. Subject to the terms and conditions of this Section 14.19, Sellers and Buyer
agree to cooperate with the other in effecting a simultaneous or delayed like-kind exchange of real property pursuant to Section 1031 of the Code and similar provisions of applicable state law provided that: (i) the cooperating party shall
incur no additional costs, expenses or liabilities as a result of, or in connection with, the exchange; (ii) the Closing shall not be delayed as a result of the exchange but shall occur within the time period contemplated by this Agreement;
(iii) all representations and warranties of the requesting party contained in this Agreement shall remain in full force and effect as if no exchange has occurred; (iv) neither party shall have any obligation to act as an exchanging party
and shall not be obligated to take title to any exchange property; and (v) the cooperating party shall not incur any liability whatsoever to any party as a result of such party’s involvement in the exchange. Neither party is making any
representation that any exchange contemplated by this Section 14.19 shall qualify as an exchange within the meaning of Section 1031 of the Code or any provisions of applicable state law. 

  

					
		 	41	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 14.20    Effectiveness. In no event shall any draft of this Agreement
create any obligation or Liability, it being understood that this Agreement shall be effective and binding only when a counterpart hereof has been executed and delivered by each party hereto. 

14.21    Survival. The provision of this Article XIV shall survive the Closing or, to the extent applicable, any
termination of this Agreement. 
 [Signatures appear on following pages.] 

  

					
		 	42	 	 The Wellington, Salt Lake City, Utah

Cottonwood Creek, Salt Lake City, Utah

The Charleston Cedar Hills, Utah

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above
written. 
  

					
	SELLERS:
	
	 WELLINGTON MSL LLC,

a Delaware limited liability company

		
	By:	 	MBK SENIOR LIVING LLC,
		 	a California limited liability company
			
		 	By:	 	 /s/ Jeff Fischer

		 	Name:	 	Jeff Fischer
		 	Title:	 	President
	
	 COTTONWOOD CREEK MSL LLC,

a Delaware limited liability company

		
	By:	 	MBK SENIOR LIVING LLC,
		 	a California limited liability company
			
		 	By:	 	 /s/ Jeff Fischer

		 	Name:	 	Jeff Fischer
		 	Title:	 	President
	
	CEDAR HILLS MSL LLC,
	a Delaware limited liability company
		
	By:	 	MBK SENIOR LIVING LLC,
		 	a California limited liability company
			
		 	By:	 	 /s/ Jeff Fischer

		 	Name:	 	Jeff Fischer
		 	Title:	 	President

 [Signatures continue on following pages] 

  
 [Signature Page to
Purchase Agreement] 

 
					
	BUYER:
	
	 SSSHT ACQUISITIONS, LLC,

a Delaware limited liability company

		
	By:	 	Strategic Student & Senior Housing Trust, Inc.,
		 	a Maryland corporation, its Manager
			
		 	By:	 	/s/ H. Michael Schwartz
		 	Name:	 	H. Michael Schwartz
		 	Title:	 	Chief Executive Officer

 [Signatures continue on following page] 

  
 [Signature Page to
Purchase Agreement] 

 ESCROW AGENT: 

The Escrow Agent is executing this Agreement to evidence its agreement to hold the Deposit and act as Escrow Agent in accordance with the
terms and conditions of this Agreement. 
  

			
	By:	 	 /s/ Kelly Ralph

	Name:	 	Kelly Ralph
	Title:	 	AVP/Commercial Escrow Officer

  
 [Signature Page to
Purchase Agreement]Exhibit

EXHIBIT 10.1
Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXECUTION VERSION
EXCLUSIVE LICENSE AGREEMENT  
by and between  
MERCK SHARP & DOHME CORP.  
and  
TIGERCAT PHARMA, INC.  
(and, for purposes of Sections 9.01 and11.02,  
VELOCITY PHARMACEUTICAL HOLDINGS, LLC)

Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXCLUSIVE LICENSE AGREEMENT
THIS EXCLUSIVE LICENSE AGREEMENT (this “Agreement”), dated as of December 21, 2012 (the “Effective Date”), is by and between MERCK SHARP & DOHME CORP., a corporation organized and existing under the laws of New Jersey (“Merck”), TIGERCAT PHARMA, INC., a corporation organized and existing under the laws of Delaware (“Tigercat”) and, for purposes of Sections 9.01 and 11.02 only, VELOCITY PHARMACEUTICAL HOLDINGS, LLC, a corporation organized and existing under the laws of Delaware (“VPH”). Merck and Tigercat are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.
WHEREAS, Merck and its Affiliates (as defined herein) have discovered and developed the Licensed Compounds (as defined herein) and Merck is seeking a licensee to further develop and commercialize the Licensed Compounds; and WHEREAS, VPH has established Tigercat and intends to capitalize Tigercat as described in the Equity Agreements (as defined herein); and WHEREAS, Tigercat desires to develop and commercialize the Licensed Compounds with investment from VPH, as described herein, and with the development assistance of Velocity Pharmaceutical Development, LLC (“VPD”), as described herein; and WHEREAS, Merck and Tigercat desire to enter into a license arrangement whereby Tigercat will develop and commercialize Licensed Compound;
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, Merck, Tigercat and, as applicable, VPH hereby agree as follows:
ARTICLE I - DEFINITIONS
As used in this Agreement, the following capitalized terms, whether used in the singular or plural, shall have the respective meanings set forth below:
1.01    “Affiliate” shall mean any individual or entity directly or indirectly controlling, controlled by or under common control with a Party to this Agreement. For purposes of this Agreement, the direct or indirect ownership of fifty percent (50%) or more of the outstanding voting securities of an entity, or the right to receive fifty percent (50%) or more of the profits or earnings of an entity shall be deemed to constitute control. Such other relationship as in fact results in actual control over the management, business and affairs of an entity shall also be deemed to constitute control.
1.02    “Calendar Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31, for so long as this Agreement is in effect.
1.03    “Calendar Year” shall mean each successive period of twelve (12) months commencing on January 1 and ending on December 31, for so long as this Agreement is in effect.

1

Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

1.04    “Commercialization” or “Commercialize” shall mean, with respect to Licensed Product, any and all activities directed to the marketing, promotion, distribution, offering for sale and selling of such product, importing and exporting such product for sale, and interacting with Regulatory Authorities regarding the foregoing.
1.05    “Compound Patent Rights” shall mean those patents and patent applications that as of the Effective Date are owned or controlled by Merck (and/or any of its Affiliates) and are listed on Schedule 1.24, that (A) have claims specifically covering the Licensed Compound or the Manufacture and/or use thereof; (B) are substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations, certificates of invention, confirmations, re-examinations, extensions, supplementary protection certificates or the like, or the provisional applications of any such patents and patent applications; or (C) are foreign equivalents of any of the above.
1.06    “Development” or “Develop” shall mean all preclinical research and development activities and all clinical drug development activities, including, among other things: drug discovery, toxicology, formulation, statistical analysis and report writing, conducting clinical trials for the purpose of obtaining, supporting and maintaining Marketing Authorizations (including without limitation, post-marketing studies), and regulatory affairs related to all of the foregoing, including without limitation the filing of INDs and NDAs and all activities in support of such filings.
1.07    “Diligent Efforts” shall mean [***].
1.08    “Equity Agreements” shall mean (i) that certain Investors’ Rights Agreement by and among Tigercat, Merck and VPH and Velocity Pharmaceutical Development, LLC (“VPD”), (ii) that certain Series A Preferred Stock Purchase Agreement by and between Tigercat and VPH, (iii) that certain Voting Agreement by and among Tigercat, Merck, VPH, VPD and certain other stockholders, and (iv) that certain Common Stock Purchase Agreement by and between Tigercat and Merck.
1.09    “FDCA” shall mean the United States Federal Food Drug and Cosmetic Act and any successor acts thereto.
1.10    “Field” shall mean the use of any Licensed Compound or Licensed Product to treat, prevent, or diagnose any disease, disorder or condition in humans, excluding, however, the treatment or prevention of nausea or emesis (including without limitation chemotherapy-induced nausea and vomiting and postoperative nausea and vomiting).
1.11    “Good Clinical Practices” shall mean the then current Good Clinical Practices as such term is defined from time to time by the United States Food and Drug Administration (“FDA”) or other relevant Regulatory Authority having jurisdiction over the Development, Manufacture or Commercialization of a Licensed Product in the Territory pursuant to its regulations, guidelines or otherwise.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

1.12    “Good Laboratory Practices” shall mean the then current good laboratory practice regulations of the FDA as described in the United States Code of Federal Regulations (“CFR”) or any comparable corresponding foreign regulations or their respective successor regulations.
1.13    “Good Manufacturing Practices” shall mean the then current Good Manufacturing Practices as such term is defined from time to time by the FDA or other relevant Regulatory Authority having jurisdiction over the Development, Manufacture or Commercialization of a Licensed Product in the Territory pursuant to its regulations, guidelines or otherwise.
1.14    “IND” shall mean any investigational new drug application with respect to the Licensed Compounds filed with the FDA for commencing clinical trials in humans, or any comparable application filed with the Regulatory Authorities in a country other than the USA prior to commencing clinical trials in humans in that country, as well as all supplements or amendments filed with respect to such filings.
1.15    “Indication” shall mean a separate and distinct disease or medical condition in humans which a Licensed Product that is in clinical trials is intended to treat, prevent and/or diagnose and/or for which a Licensed Product has received Marketing Authorization.
1.16    “Initiation” shall mean, with respect to a clinical trial, the administration of the first dose to a patient in such clinical trial.
1.17    “Know-How” shall mean proprietary information and materials (whether patentable or not) relating to any Licensed Compound, any Licensed Product, a formulation, product improvement and/or Indication, or the Development or Manufacture or use of any of the foregoing, that are not in the public domain, including, without limitation, (a) ideas, discoveries, inventions, improvements, technology or trade secrets, (b) pharmaceutical, chemical and biological materials, products, components or compositions, (c) methods, procedures, formulas, processes, tests, assays, techniques, regulatory requirements and strategies, (d) biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical, clinical, safety, Manufacturing and quality control data and information related thereto, (e) technical and non-technical data and other information related to the foregoing, (f) drawings, plans, designs, diagrams, sketches, specifications or other documents containing or relating to such information or materials and (g) all applications, registrations, licenses, authorizations, approvals and material correspondence relating to any Licensed Compound and/or any Licensed Product submitted to Regulatory Authorities.
1.18    “Licensed Compound” shall mean [***].
1.19    “Licensed Product” shall mean any pharmaceutical composition, dosage form or preparation that contains as an active ingredient, a Licensed Compound or any metabolite, prodrug, acid form, base form, ester, salt, stereoisomer, racemate, tautomer or polymorph of a Licensed Compound.
1.20    “Major European Country” shall mean any of [***].

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

1.21    “Manufacture” shall mean all activities related to the manufacturing of a pharmaceutical product, or any ingredient thereof, including but not limited to test method development and stability testing, formulation, process development, manufacturing for use in non-clinical or clinical studies, manufacturing scale-up, manufacturing quality assurance/quality control development, quality control testing (including in-process release and stability testing), packaging, release of product or any component or ingredient thereof, quality assurance activities related to manufacturing and release of product, and regulatory activities related to all of the foregoing.
1.22    “Marketing Authorization” shall mean all approvals from the relevant Regulatory Authority necessary to market and sell a Licensed Product in any country and including, where relevant, pricing approval.
1.23    “Merck” shall have the meaning set forth in the preamble to this Agreement.
1.24    “Merck Know-How” shall mean the Know-How owned or controlled by Merck and/or any of its Affiliates as of the Effective Date that was used by Merck or its Affiliates in the Development or Manufacture of any Licensed Compound and that is listed on Schedule 1.24 or is otherwise provided to Tigercat by Merck under this Agreement.
1.25    “NDA” shall mean a New Drug Application, Biologics License Application, Worldwide Marketing Application, Marketing Authorization Application, filing pursuant to Section 510(k) of the FDCA, or similar application or submission for Marketing Authorization filed with a Regulatory Authority to obtain marketing approval for a biological, pharmaceutical or diagnostic product in that country or in that group of countries.
1.26    “Party” or “Parties” shall have the meaning given to such terms in the preamble to this Agreement.
1.27    “Phase II Clinical Trial” shall mean a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(b) or equivalent applicable regulatory requirements.
1.28    “Phase III Clinical Trial” shall mean a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(c) or equivalent applicable regulatory requirements.
1.29    “Proprietary Information” shall mean, as applicable, Know-How, information relating to the Development, Manufacturing or Commercialization of a Licensed Product and all other scientific, clinical, regulatory, marketing, financial and commercial information or data, whether communicated in writing, verbally or electronically, that is provided by one Party to the other Party in connection with this Agreement.
1.30    “Regulatory Authority” shall mean any applicable government regulatory authority involved in granting approvals for the manufacturing, marketing, reimbursement and/or pricing of a Licensed Product in the Territory.
1.31    “Territory” shall mean the entire world.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

1.32    “Tigercat” shall have the meaning set forth in the preamble of this Agreement.
1.33    “Tigercat Know-How” shall mean any and all Know-How developed by Tigercat and/or any of Tigercat’s Affiliates or sublicensees after the Effective Date.
1.34    “Tigercat Patent Rights” shall mean any and all patents and patent applications that after the Effective Date are owned or controlled by Tigercat and/or any of Tigercat’s Affiliates or sublicensees that: (A) have claims specifically covering (i) any Licensed Compound or the Manufacture and/or use thereof, or (ii) any Licensed Product or the Manufacture and/or use thereof; (B) are substitutions, divisions, continuations, continuations-in-part, reissues, renewals, registrations, certificates of invention, confirmations, re-examinations, extensions, supplementary protection certificates or the like, or the provisional applications, of any such patents and patent applications; or (C) are foreign equivalents of any of the above.
1.35    “Third Party” shall mean an entity other than Merck, Tigercat and their respective Affiliates.
1.36    “VPD” shall have the meaning set forth in the preamble of this Agreement.
1.37    “VPH” shall have the meaning set forth in the preamble of this Agreement.
1.38    Additional Definitions.  Each of the following definitions is set forth in the Section of this Agreement indicated below.
	
		
	Definition
	Section

	AAA
	13.02(a)

	AEs
	4.02(a)

	Agents
	9.01(b)

	Agreement
	Preamble

	CFR
	1.12

	Development Funding
	3.04

	Development Plan
	3.03(a)

	Development Report
	3.05

	Effective Date
	Preamble

	Evaluation Period
	3.07(b)

	FDA
	1.11

	Force Majeure
	14.08

	Inventory
	4.01(a)

	Liability
	11.01

	LIBOR
	7.04

	Merck Indemnified Party
	11.01

	Option Notice
	3.07(a)

	Option Information Package
	3.07(b)

	Services Agreement
	3.02

	Sublicense Agreement
	2.04

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

	
		
	Term
	12.01

	Term Sheet
	3.07(c)

	Tigercat Indemnified Party
	11.02

	Third Party Purchaser
	3.07(c)

ARTICLE II - LICENSE
2.01    License Grant.  Subject to the terms and conditions of this Agreement and Merck’s retained rights, Merck hereby grants the following to Tigercat:
		
	(a)
	Patent License.  An exclusive (even as to Merck and its Affiliates, except as provided in this Section 2.01) license, with the right to grant sublicenses as provided herein, under the Compound Patent Rights to make, have made, use, sell, offer for sale, and import (and to otherwise Develop, Manufacture, have Manufactured, export and Commercialize) any Licensed Compound and/or any Licensed Product in the Field in the Territory.

		
	(b)
	Know-How License.  An exclusive (even as to Merck and its Affiliates, except as provided in this Section 2.01) license, with the right to grant sublicenses as provided herein, to Merck Know-How to make, have made, use, sell, offer for sale, and import (and to otherwise Develop, Manufacture, have Manufactured, export and Commercialize) any Licensed Compound and/or any Licensed Product in the Field in the Territory.

For the avoidance of doubt, Merck and its Affiliates retain (i) non-exclusive rights under the Compound Patent Rights and to Merck Know-How (including, without limitation, any Licensed Compounds) for preclinical research purposes, including screening and counterscreening, and (ii) all rights for all purposes outside the Field.
2.02    No Non-Permitted Use.  Tigercat hereby covenants that it shall not, and shall cause its Affiliates and sublicensees (including without limitation VPD) not to, use or practice, directly or indirectly, any Merck Know-How or Compound Patent Rights for any purpose outside the Field.
2.03    No Other Licenses.  No Party grants to any other Party under this Agreement any rights or licenses in or to any intellectual property, whether by implication, estoppel, or otherwise, other than the license rights that are expressly granted under this Agreement.
2.04    Right to Sublicense and Sublicense Agreements.  The licenses granted in Section 2.01 may be sublicensed in whole or in part by Tigercat, to one or more Affiliates and/or Third Parties, for any country in the Territory, within any fields within the Field, and with respect to one or more Licensed Compounds and/or Licensed Products; provided that any sublicense agreement shall be consistent with the terms and conditions of this Agreement, and in particular, but without limitation, shall include provisions for the benefit of Merck corresponding to Sections 2.02, 3.07, 7.03 and 11.01. Tigercat shall (i) use reasonable efforts to procure the performance by any sublicensee of the terms of each such sublicense agreement, and (ii) ensure that any sublicensee will comply with the applicable terms and conditions of this Agreement. Tigercat hereby guarantees the performance of its Affiliates and sublicensees, and the grant of 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

any sublicense will not relieve Tigercat of its obligations under this Agreement, except to the extent they are satisfactorily performed by such Affiliate or sublicensee.
2.05    Section 365(n) of the Bankruptcy Code.  All rights and licenses granted under or pursuant to any section of this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(35A) of the Bankruptcy Code. Each Party shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code or equivalent legislation in any other jurisdiction. Upon the bankruptcy of any Party, the licensed Party shall further be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property, which, if not already in its possession, shall be promptly delivered to such other Party, unless the Party in bankruptcy elects to continue, and continues, to perform all of its obligations under this Agreement.
ARTICLE III - DEVELOPMENT AND COMMERCIALIZATION
3.01    Overview.  As of the Effective Date, Tigercat shall be solely responsible for the Development Commercialization and Manufacturing, including all costs thereof, of any Licensed Compound and any Licensed Product in the Field in the Territory. Tigercat shall perform all Development activities in accordance with the IND for any Licensed Compound and all applicable laws, rules and regulations.
3.02    Services Agreement.  As of the Effective Date, Tigercat and VPD shall have entered into a services agreement (the “Services Agreement”) pursuant to which VPD shall design and manage the Development of the Licensed Compounds and Licensed Products. All costs associated with the Services Agreement shall be borne by Tigercat.
3.03    Development Plans.
		
	(a)
	Initial Development Plan.  No later than the Effective Date, Tigercat and Merck shall have agreed on the initial Development plan for the Licensed Compounds and Licensed Products in the Field in the Territory, which shall be incorporated as part of this Agreement as Schedule 3.03(a) (as amended in accordance with this Agreement, the “Development Plan”).

		
	(b)
	Annual Development Plan.  No later than [***] days after the end of each Calendar Year, Tigercat shall submit to Merck an updated Development Plan for the then current Calendar Year. Such update shall take into account completion, commencement, changes in or cessation of Development activities in sufficient detail to reflect the continued diligence of Tigercat. Merck shall have the right to comment on such updated Development Plan, but Tigercat shall have sole decision-making rights with respect to such Development Plan.

		
	(c)
	Performance.  Tigercat shall perform, and shall cause its Affiliates, sublicensees, and Third Party contractors to perform, the activities described in the Development Plan in compliance with all applicable Good Laboratory Practices, Good Clinical Practices 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

and/or Good Manufacturing Practices and in compliance with all other applicable laws, rules, and regulations.
3.04    Development Funding.  Tigercat will use [***] it receives under the Equity Agreements (the “Development Funding”) to fund the Development of Licensed Compounds and Licensed Products in accordance with the Development Plan. For the avoidance of doubt, amounts paid by Tigercat to VPD under the Services Agreement to design and manage the Development of the Licensed Compounds and Licensed Products shall be deemed to have been used to fund the Development of Licensed Compounds and Products in accordance with the Development Plan.
3.05    Development Reports.  Tigercat shall provide Merck with reasonably detailed reports describing the progress of the Development of all Licensed Compounds and Licensed Products (hereinafter “Development Reports”). Such Development Reports shall be furnished on a [***] basis, within [***] following the end of the respective [***]. Each Development Report shall include the following information for the Licensed Compounds and Licensed Products: a description of the Development work conducted during the applicable [***], in reasonable detail, including clinical studies, formulation work, manufacturing work, other testing work and regulatory activity; timelines for such work; and key decision gates and milestones for such work.
3.06    Advance Notice of NDA Filing.  Tigercat shall give Merck at least [***] prior written notice of its intent to file the first NDA in the Territory for any Licensed Product.
3.07    [***].
ARTICLE IV - REGULATORY; MATERIALS AND INFORMATION TRANSFER 
4.01    Materials and Regulatory Filings Transfer.
		
	(a)
	As soon as is reasonably practicable following the Effective Date, Merck shall transfer to Tigercat, in a mutually agreed manner, such amounts of the Licensed Compounds (the “Inventory”) in Merck’s inventory as are set forth on Schedule 1.24. The Inventory shall be used only in preclinical Development in the Field and shall not be used for clinical Development (except to the extent that the Inventory is certified to be compliant with Good Manufacturing Practices by or on behalf of Tigercat) or for commercial purposes.

		
	(b)
	As soon as is reasonably practicable after the Effective Date (or such other date as may be mutually agreed by the Parties), Merck shall assign and transfer to Tigercat the existing INDs covering the Licensed Compounds identified on Schedule 1.24 and take such other actions as may be necessary to effect such assignment and transfer. All further submissions to any Regulatory Authorities relating to such INDs (including any subsequent NDAs and Marketing Authorizations) shall be filed in the name of and owned by Tigercat or its Affiliates. Tigercat or its Affiliates shall hold all Marketing Authorizations for any Licensed Products in the Field throughout the Territory.

8

Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	(c)
	As soon as is reasonably practicable after the Effective Date (or such other date as may be mutually agreed by the Parties), Merck shall (i) transfer to Tigercat the Merck Know-How identified on Schedule 1.24 and (ii) reasonably cooperate with Tigercat to address and answer Tigercat’s questions in understanding and utilizing the Merck Know-How. It is the intent of the Parties that this period of project transition extend no longer than [***] after the Effective Date; provided, however, that if reasonable cooperation is required after such [***], Tigercat shall reimburse Merck for the reasonable costs and expenses of providing such cooperation.

		
	(d)
	Tigercat shall be solely responsible for all regulatory actions, communications and filings with, and submissions to, the FDA and other Regulatory Authorities in the Field in the Territory with respect to any Licensed Compound or Licensed Product. Merck will cooperate with Tigercat for a period of up to [***] after the Effective Date to facilitate a smooth transition of regulatory responsibilities under this Agreement. Further, Merck will provide reasonable assistance to Tigercat in responding to any requests, regulatory actions, communications or any other obligations requested by the FDA or any other Regulatory Authorities to the extent related to the Development of the Licensed Compounds prior to the Effective Date.

		
	(e)
	Tigercat shall be solely responsible for interfacing, corresponding and meeting with the FDA and other Regulatory Authorities in the Field throughout the Territory with respect to any Licensed Compound or Licensed Product. Tigercat shall provide Merck with quarterly reports which include copies of any material correspondence and any meeting minutes from any material meetings with FDA or other Regulatory Authorities in the USA, the Major European Countries and Japan relating to approval of any Licensed Product during the prior Calendar Quarter, and respond to all reasonable inquiries by Merck with respect thereto.

		
	(f)
	In the event that any Regulatory Authority (a) threatens or initiates any action to remove a Licensed Product from the market in any country in the Field in the Territory or (b) requires Tigercat, its Affiliates, or its sublicensees to distribute a “Dear Doctor” letter or its equivalent regarding use of any Licensed Product in the Field, Tigercat shall notify Merck of such event within [***] after Tigercat becomes aware of the action, threat, or requirement (as applicable). Tigercat shall, to the extent reasonably practicable, notify Merck prior to initiating a recall or withdrawal of any Licensed Product in the Field in the USA, Japan, or a Major European Country. The decision as to whether to recall or withdraw a Licensed Product in the Field in the Territory shall be made by Tigercat in its sole discretion. Tigercat shall be responsible, at its sole expense, for conducting any such recalls or taking such other necessary remedial action.

4.02    Pharmacovigilance.
		
	(a)
	Following the transfer of any INDs related to any Licensed Products from Merck to Tigercat, Tigercat shall be solely responsible for the collection, review, assessment, tracking and filing of information related to adverse events (“AEs”) associated with each 

9

Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

Licensed Product in the Field, in accordance with 21 CFR 312.32, 314.80 and comparable regulations, guidance, directives and the like governing AEs associated with each Licensed Product that are applicable outside of the USA.
		
	(b)
	Tigercat shall assume responsibility for maintaining a global safety database for any Licensed Products consistent with industry practices.

ARTICLE V - DILIGENCE
5.01    Diligent Efforts.  Tigercat shall use Diligent Efforts to Develop [***]. For clarity, (i) all Development efforts relating to a Licensed Compound and/or a Licensed Product made by any Affiliate or sublicensee of the rights granted to Tigercat under this Agreement will be attributed to the Diligent Efforts of Tigercat under this Section 5.01, and (ii) in no event shall Tigercat be required to devote more than [***] to the Development of the Licensed Compound and/or Licensed Product.
ARTICLE VI - MANUFACTURING
6.01    Manufacturing Responsibility.  As between the Parties, Tigercat will be responsible for the Manufacturing of any Licensed Compound and Licensed Product for use by Tigercat, its Affiliates, and its sublicensees and any Third Parties in the Field in the Territory.
ARTICLE VII - PAYMENTS
7.01    Upfront Licensing Fee.  In partial consideration for the licenses granted to Tigercat under this Agreement, Tigercat shall pay to Merck a non-refundable, non-creditable, upfront payment of One Million US Dollars (US$1,000,000), which shall be due within [***] of the Effective Date.
7.02    Upfront Equity Payment.  In further consideration for the licenses granted to Tigercat under this Agreement, Tigercat shall issue to Merck fully paid equity equivalent to [***] of the common stock of Tigercat as of the Effective Date (the “Equity”). The Equity shall be issued to Merck within [***] after the Effective Date. The Equity shares issued to Merck pursuant to this Section 7.02 shall convey the rights and be subject to the terms and conditions set forth in the Equity Agreements.
7.03    Milestone Payments.  In further consideration for the licenses granted to Tigercat under this Agreement, Tigercat shall pay to Merck each of the following non-refundable milestone payments based on attainment of the Development and regulatory milestones indicated below:
	
			
	(i)
	Three Million US Dollars (US$3,000,000)
	Upon the Initiation of the first Phase III Clinical Trial of each Licensed Product

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

[***].
Tigercat shall notify Merck in writing within [***] after the achievement of each such milestone event, and Tigercat shall pay Merck the indicated amount no later than [***] after such notification to Merck.
For clarity, the Parties acknowledge the following:
[***]
(2) The maximum total potential milestone payments which may become due and payable under this Section 7.03 is twenty five million US dollars (US$25,000,000) with respect to each Licensed Product and seventy five million US dollars (US$75,000,000) for all Licensed Products Developed under this Agreement;
[***].
7.04    Method of Payment; Late Payments.  All payments to be made by Tigercat to Merck under this Agreement shall be paid by bank wire transfer in immediately available funds to such bank account as is designated in writing by Merck from time to time. Any amount owed by Tigercat to Merck under this Agreement that is not paid within the applicable time period set forth herein shall accrue interest at the rate of [***].
ARTICLE VIII - PATENTS
8.01    Prosecution and Maintenance of Patents.  Tigercat agrees to prosecute and maintain the Compound Patent Rights in the Field in the Territory at its sole cost and expense [***].
8.02    Option of Merck to Prosecute and Maintain Patents.  Tigercat shall give notice to Merck of any desire to cease prosecution and/or maintenance of the Compound Patent Rights in the Field in the Territory and, in such case, shall permit Merck (or any Merck Affiliate), at Merck’s sole discretion, to continue such prosecution or maintenance at its own expense.
8.03    Enforcement.  In the event that either Merck or Tigercat becomes aware of any alleged or threatened commercially material infringement in a country in the Territory of any issued patent within the Compound Patent Rights, it will notify the other Party in writing to that effect. Tigercat shall have [***] from the date of said notice to obtain a discontinuance of any such infringement within the Field or bring trial, suit or action against the Third Party infringer for such infringement within the Field. Tigercat shall bear all the expenses of any such trial, suit or action. Merck shall have the right, prior to commencement of the trial, suit or action brought by Tigercat, to join any such trial, suit or action. No settlement, consent judgment or other voluntary final disposition of such trial, suit or action may be entered into without the consent of Merck, such consent not to be unreasonably withheld, conditioned or delayed. In the event that Merck has not joined such trial, suit or action, Merck will reasonably cooperate with Tigercat in any such trial, suit or action, including by joining (and /or ensuring any relevant Merck Affiliate joins) such trial, suit or action if requested by Tigercat, at Tigercat’s sole cost and expense. Any recovery or damages derived from 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

such trial, suit or action shall be retained by Tigercat. Tigercat shall incur no liability to Merck (or its Affiliates) as a consequence of such litigation or any unfavorable decision resulting therefrom, including any decision holding any of the Compound Patent Rights invalid or unenforceable.
8.04    Infringement and Third Party Licenses.  In the event that Tigercat’s, its Affiliates’ or its sublicensees’ making, having made, importing, exporting, using, Manufacturing, having Manufactured, distributing, marketing, promoting, offering for sale or selling any Licensed Compound or Licensed Product infringes, will infringe or is alleged by a Third Party to infringe, a claim of a patent that specifically covers any Licensed Compound, Licensed Product or its Manufacture, the Party becoming aware of same shall promptly notify the other. Tigercat will be responsible for defending any such infringement claim. Merck and its Affiliates shall cooperate fully with Tigercat in its efforts to defend against such infringement claim and shall agree to be a 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

party in any suit, if requested. Further, Merck shall have a right, in Merck’s sole discretion, to join or otherwise participate in such legal action with legal counsel selected by Merck; provided, however that such participation shall not undermine Tigercat’s right to control such legal action and such participation will be at Merck’s sole cost and expense. Tigercat shall notify and keep Merck apprised in writing of such action and shall consider and take into account Merck’s reasonable interests and requests regarding such action. Any settlement of such infringement claim that would admit liability on the part of Merck or any of its Affiliates shall be subject to Merck’s prior written approval, such approval not to be unreasonably withheld, conditioned or delayed.
8.05    Abandonment.  Tigercat shall give notice to Merck of the grant, lapse, revocation, surrender, invalidation or abandonment of any Compound Patent Rights licensed by Merck or its Affiliates for which Tigercat is responsible for the prosecution and maintenance under this Agreement.
ARTICLE IX - CONFIDENTIALITY AND PUBLICATION
9.01    Confidentiality.
		
	(a)
	Nondisclosure Obligation.  Merck and Tigercat shall each use any Proprietary Information received by it hereunder from the other Party only in accordance with this Agreement and shall not disclose to any Third Party any such Proprietary Information without the prior written consent of the other Party. The foregoing obligations shall survive the expiration or termination of this Agreement for a period of [***]. These obligations shall not apply to Proprietary Information that:

		
	(i)
	is known by the receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party, as documented by the receiving Party’s written records;

		
	(ii)
	is at the time of disclosure, or thereafter becomes, published or otherwise part of the public domain without breach of this Agreement by the receiving Party;

		
	(iii)
	is subsequently disclosed to the receiving Party by a Third Party who has the right to make such disclosure, as documented by the receiving Party’s written records;

		
	(iv)
	is independently developed by the receiving Party or its Affiliates without the aid, use or application of any of the disclosing Party’s Proprietary Information, and such independent development can be documented by the receiving Party’s written records;

		
	(v)
	is disclosed to any institutional review board of any entity conducting clinical trials with any Licensed Product or to any governmental agency or Regulatory Authority in order to obtain patents or to gain approval to conduct clinical trials or to market any Licensed Product, provided that such disclosure may be made only to the extent reasonably necessary to obtain such patents or authorizations; or

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	(vi)
	is required to be disclosed by law, regulation, rule, act or order of any Regulatory Authority or governmental agency to be disclosed, provided that notice is promptly delivered to the Party that provided such Proprietary Information in order to provide an opportunity to seek a protective order or other similar order with respect to such Proprietary Information, and thereafter the receiving Party discloses to the requesting entity only the minimum information required to be disclosed in order to comply with the request, whether or not a protective order or other similar order is obtained by the other Party.

		
	(b)
	Disclosure to Agents.  Notwithstanding the provisions of Section 9.01(a) and subject to the other terms of this Agreement, Tigercat shall have the right to disclose Proprietary Information to its sublicensees, agents, consultants, Affiliates or other Third Parties (collectively “Agents”) in accordance with this Section 9.01(b). Such disclosure shall be limited (i) only to those Agents directly involved in the Development, Manufacturing or Commercialization of any Licensed Compound or Licensed Product (or for such Agents to determine their interest in performing such activities) in accordance with this Agreement, or (ii) to the Proprietary Information which is relevant for any Agent to determine whether to sublicense any or all of the rights licensed to Tigercat under this Agreement. Any such Agents must agree in writing to be bound by confidentiality and non-use obligations essentially the same as those contained in this Agreement.

		
	(c)
	Disclosure to Strategic Partners.  Notwithstanding the provisions of Section 9.01(a) and subject to the other terms of this Agreement, Tigercat shall have the right to disclose Proprietary Information to any investor or potential investor in Tigercat and/or VPH, shareholder or prospective shareholder of Tigercat and/or VPH, licensee or potential licensee of Tigercat, or acquirer or potential acquirer of Tigercat (collectively “Strategic Partners”) in accordance with this Section 9.01(c). Such disclosure shall be limited to Proprietary Information relevant to the diligence process of such Strategic Partners in connection with a financing (or proposed financing), equity investment (or proposed investment), license or collaboration deal (or proposed license or collaboration deal), merger, consolidation or similar transaction involving Tigercat or its Affiliates in accordance with this Agreement. Any such Strategic Partners must agree in writing to be bound by confidentiality and non-use obligations essentially the same as those contained in this Agreement.

9.02    Return of Confidential Information.  Upon termination of this Agreement, the receiving Party will return all documents, and copies thereof, including those in the possession of the receiving Party’s Agents pursuant to Section 9.01(b), containing the disclosing Party’s Proprietary Information at any time upon the written request of the disclosing Party. However, the receiving Party may retain one (1) copy of such documents in a secure location solely for the purposes of (i) determining its obligations hereunder, (ii) complying with any applicable regulatory requirements, or (iii) defending against any product liability or intellectual property infringement claim.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

9.03    Breach of Confidentiality.  The Parties agree that the disclosure of the disclosing Party’s Proprietary Information in violation of this Agreement may cause the disclosing Party irreparable harm and that any breach or threatened breach of this Agreement by the receiving Party entitles the disclosing Party to seek injunctive relief, in addition to any other legal or equitable remedies available to it, in any court of competent jurisdiction. For clarity, such disputes shall not be subject to Article XII.
9.04    No Publicity.  A Party may not use the name of another Party in any publicity or advertising and may not issue a press release or otherwise publicize or disclose any information related to the existence of this Agreement or the terms or conditions hereof, except (i) on the advice of its counsel as required by law (e.g., any Securities and Exchange Commission filings and disclosures), provided that the Party who will be disclosing such information has consulted with the other Party to the extent feasible prior to such disclosure with respect to the substance of the disclosure; or (ii) as consented to in advance by the other Party in writing. Furthermore, Tigercat shall provide Merck with reasonable advance written notice of any press release or other public disclosure relating to any Licensed Compound or Licensed Product.
9.05    Terms of Agreement.  No Party nor its Affiliates shall disclose any terms or conditions of this Agreement to any Third Party without the prior consent of the other Parties, except as follows: A Party and its Affiliates may disclose the terms or conditions of this Agreement (but not any other Proprietary Information, which may be disclosed only as described elsewhere in this Article IX), (a) on a need-to-know basis to its legal and financial advisors to the extent such disclosure is reasonably necessary, provided that such advisors are subject to confidentiality with regard to such information under an agreement or ethical obligation; (b) to a Third Party in connection with (i) a financing (or proposed financing) or an equity investment (or proposed investment) in such Party or its Affiliates, including to its shareholders and prospective shareholders, (ii) a merger, consolidation or similar transaction by such Party or its Affiliates, (iii) the sale of all or substantially all of the assets of such Party or its Affiliates, (iv) a securitization, (v) to facilitate the sublicensing of any or all of the rights licensed to Tigercat under this Agreement, or (vi) to facilitate the assignment of any or all of Tigercat’s rights and obligations under this Agreement (in accordance with Section 14.01(a)), provided that such Third Party executes a non-use and non-disclosure agreement and observes the same obligations of confidentiality as such Party owes under this Agreement with respect to Proprietary Information of the other Party; (c) to the United States Securities and Exchange Commission or any other securities exchange or governmental entity, including as required to make an initial or subsequent public offering, or (d) as otherwise required by law or regulation, provided that in the case of (c) and (d) the disclosing Party shall (x) if practicable, provide the other Party with reasonable advance notice of and an opportunity to comment on any such required disclosure, (y) if requested by such other Party, seek, or cooperate with such Party’s efforts to obtain, confidential treatment or a protective order with respect to any such disclosure to the extent available, at such other Party’s expense, and (z) use good faith efforts to incorporate the comments of such other Party in any such disclosure or request for confidential treatment or protective order.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

ARTICLE X - REPRESENTATIONS AND WARRANTIES
10.01    Representations and Warranties of Each Party.  Tigercat hereby represents, warrants and covenants to Merck, and Merck hereby represents, warrants and covenants to Tigercat as follows:
		
	(a)
	it is a corporation duly organized and validly existing under the laws of the state or other jurisdiction of its incorporation;

		
	(b)
	the execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate action;

		
	(c)
	it has the power and authority to execute and deliver this Agreement, to grant any and all licenses hereunder and to perform its obligations hereunder;

		
	(d)
	the execution, delivery and performance by such Party of this Agreement and its compliance with the terms and provisions hereof does not and will not conflict with or result in a breach of any of the terms and provisions of, or constitute a default under, (i) any loan agreement, guaranty, financing agreement, agreement affecting a product or other agreement or instrument binding or affecting it or its property; (ii) the provisions of its corporate charter or other operative documents or bylaws; or (iii) any order, writ, injunction or decree of any court or Regulatory Authority entered against it or by which any of its property is bound;

		
	(e)
	except for the Marketing Authorizations required to market any Licensed Product in the Territory, the execution, delivery and performance of this Agreement by such Party does not require the consent, approval or authorization of, or notice, declaration, filing or registration with, any governmental or Regulatory Authority and the execution, delivery or performance of this Agreement will not violate any law, rule or regulation applicable to such Party;

		
	(f)
	this Agreement has been duly authorized, executed and delivered and constitutes such Party’s legal, valid and binding obligation enforceable against it in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general equity principles; and

		
	(g)
	it shall comply with all applicable material laws and regulations relating to its activities under this Agreement.

10.02    Tigercat’s Representations.  Tigercat hereby represents, warrants and covenants to Merck as follows:
		
	(a)
	during the Term of this Agreement it will not use in any capacity, in connection with any services  to be performed in connection with this Agreement, any individual who has been debarred pursuant to the FDCA; and

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	(b)
	it has the capacity and resources to Develop Licensed Product and to Manufacture Licensed Compound.

10.03    Merck’s Representations.  Merck hereby represents and warrants to Tigercat that, to the best of its knowledge, as of the Effective Date, the patents and patent applications listed on Schedule 1.24 are the only patents and patent applications owned or controlled by Merck (and/or any of its Affiliates) that are necessary for the Development of any Licensed Compound as contemplated in the Development Plan.
10.04    No Inconsistent Agreements.  No Party has in effect, and after the Effective Date no Party shall enter into, any oral or written agreement or arrangement that would be inconsistent with its obligations under this Agreement.
10.05    Representation by Legal Counsel.  Each Party hereto represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting of this Agreement. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption shall exist or be implied against the Party that drafted such terms and provisions.
10.06    Disclaimer.  EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE X, THE LICENSED COMPOUNDS, LICENSED PRODUCTS, COMPOUND PATENT RIGHTS AND MERCK KNOW-HOW ARE PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR ANY WARRANTY THAT THE USE OF THE MATERIALS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY.
10.07    No Warranty.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NO PARTY HERETO MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. IN PARTICULAR, BUT WITHOUT LIMITATION, MERCK MAKES NO REPRESENTATION AND EXTENDS NO WARRANTY CONCERNING WHETHER ANY LICENSED COMPOUND OR LICENSED PRODUCT IS FIT FOR ANY PARTICULAR PURPOSE OR SAFE FOR HUMAN CONSUMPTION.
ARTICLE XI - INDEMNIFICATION AND LIMITATION ON LIABILITY
11.01    Indemnification by Tigercat.  Tigercat shall indemnify, defend and hold harmless Merck and its Affiliates, and each of its and their respective employees, officers, directors and agents (each of the foregoing, an “Merck Indemnified Party”) from and against any and all liability, loss, damage, cost, and expense (including reasonable attorneys’ fees) (collectively, a “Liability”) that a Merck Indemnified Party may incur, suffer or be required to pay as a result of any Third Party claim, suit or action resulting from or arising in connection with [***]. Notwithstanding the foregoing, Tigercat shall have no obligation under this Agreement to indemnify, defend or hold harmless any Merck Indemnified Party with respect to any Liabilities 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

that result from the gross negligence or willful misconduct of any Merck Indemnified Party or that result from Merck’s breach of its obligations under this Agreement.
11.02    Indemnification by Merck.  Merck shall indemnify, defend and hold harmless Tigercat, VPD, VPH and their Affiliates, and each of their respective employees, officers, directors and agents (each of the foregoing, a “Tigercat Indemnified Party”) from and against any Liability that a Tigercat Indemnified Party may incur, suffer or be required to pay as a result of any Third Party claim suit or action resulting from or arising in connection with [***]. Notwithstanding the foregoing, Merck shall have no obligation under this Agreement to indemnify, defend or hold harmless any Tigercat Indemnified Party with respect to any Liabilities that result from the gross negligence or willful misconduct of any Tigercat Indemnified Party or that result from Tigercat’s breach of its obligations under this Agreement.
11.03    Conditions to Indemnification.  The obligations of the indemnifying Party under Sections 11.01 and 11.02 are conditioned upon the delivery of written notice to the indemnifying Party of any potential Liability promptly after the indemnified Party becomes aware of such potential Liability. The indemnifying Party shall have the right to assume the defense of any suit or claim related to the Liability if it has assumed responsibility for the suit or claim in writing. If the indemnifying Party defends the suit or claim, the indemnified Party may participate in (but not control) the defense thereof at its sole cost and expense. Notwithstanding the foregoing, the Parties acknowledge and agree that failure of the indemnified Party to promptly notify the indemnifying Party of a potential Liability shall not constitute a waiver of, or result in the loss of, such Party’s right to indemnification under Section 11.01 or 11.02, as appropriate, except to the extent that the indemnifying Party’s rights, and/or its ability to defend against such Liability, are materially prejudiced by such failure to notify.
11.04    Settlements.  No Party may settle a claim or action related to a Liability without the consent of another Party, such consent not to be unreasonably withheld, if such settlement would impose any monetary obligation on such other Party or require such other Party to submit to an injunction or otherwise limit such other Party’s rights under this Agreement. Any payment made by a Party to settle any such claim or action shall be at its own cost and expense.
11.05    Limitation of Liability.  EXCEPT WITH RESPECT TO LIABILITY ARISING FROM BREACH OF ARTICLE IX, FROM ANY WILLFUL OR INTENTIONALLY WRONGFUL ACT BY EITHER PARTY OR TO THE EXTENT SUCH PARTY MAY BE REQUIRED TO INDEMNIFY THE OTHER PARTY UNDER THIS ARTICLE 11, NEITHER PARTY NOR ITS RESPECTIVE AFFILIATES AND SUBLICENSEES SHALL BE LIABLE FOR ANY LOST PROFITS, LOSS OF BUSINESS, LOSS OF CONTRACTS, DIMINISHED GOODWILL, DIMINISHED REPUTATION, OR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE.
11.06    Insurance.  At such time as Tigercat or any of its sublicensees begins to Commercialize a Licensed Product, Tigercat shall, at its own expense, procure and maintain policies of comprehensive general liability insurance (including without limitation product liability 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

insurance) in the amount of [***]. Any such policies shall name Merck as an additional insured, and insurers will waive all rights of subrogation against Merck. Upon Merck’s request, Tigercat will promptly provide for itself and its sublicensees copies of certificates of insurance evidencing such coverages. Tigercat shall notify Merck not less than [***] in advance of any material change or cancellation of any policy. Tigercat shall continue to maintain such insurance in effect after the expiration or termination of this Agreement during any period in which Tigercat or its sublicensee continues to Manufacture or Commercialize any Licensed Product. If any insurance is on a claims made basis, Tigercat will maintain such insurance for a period of not less than [***] after it has ceased all Commercialization of any Licensed Product. In the event that it would be commercially reasonable for Tigercat to self-insure for liabilities of [***] (as a result of Tigercat’s acquisition or otherwise), then, notwithstanding the foregoing insurance obligations imposed by this Section 11.06, Tigercat may self-insure for any such liabilities.
ARTICLE XII - TERM AND TERMINATION
12.01    Term and Expiration.  This Agreement shall be effective as of the Effective Date and, unless terminated earlier by mutual written agreement of the Parties or pursuant to Section 12.02 or 12.03, this Agreement shall continue in effect until all of the milestones set forth in Section 7.03 have been achieved (the “Term”). Upon expiration of this Agreement, Tigercat’s licenses pursuant to Section 2.01 shall become fully paid-up, perpetual licenses.
12.02    Termination by Tigercat.
		
	(a)
	Tigercat’s Right to Terminate.  Tigercat shall have the unilateral right to terminate this Agreement in its entirety without cause by giving thirty (30) days’ advance written notice to Merck. In the event of such termination, the rights and obligations hereunder shall terminate; provided, however, that any payment obligations due and owing as of the termination date shall continue.

		
	(b)
	Effect of Termination.  Notwithstanding anything contained herein to the contrary, following any termination of this Agreement in its entirety under Section 12.02(a), all rights and licenses granted to Tigercat hereunder shall revert back to Merck pursuant to Section 12.05.

12.03    Termination for Cause.
		
	(a)
	Termination for Cause.  This Agreement may be terminated, in its entirety, by written notice by either Party at any time during the Term of this Agreement:

		
	(i)
	upon or after the breach of any material provision of this Agreement, if the breaching Party has not cured such breach within [***] following receipt of written notice from the non-breaching Party requesting cure of the breach or, if such breach is not susceptible of cure within such [***] period, the breaching Party has not taken appropriate steps to commence such cure during such [***] period and continued to diligently pursue such cure in a manner reasonably ensuring such cure within a reasonable period of time thereafter (not to exceed [***]). Any right to terminate 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

under this Section 12.03(a) shall be stayed and the cure period tolled in the event that, during any cure period, the Party alleged to have been in material breach shall have initiated dispute resolution in accordance with Article XIV with respect to the alleged breach, which stay and tolling shall last so long as the allegedly breaching Party diligently and in good faith cooperates in the prompt resolution of such dispute resolution proceedings; or upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings by or against the other Party, or 
		
	(ii)
	upon an assignment of a substantial portion of the assets for the benefit of creditors by the other Party, or in the event a receiver or custodian is appointed for such Party’s business, or if a substantial portion of such Party’s business is subject to attachment or similar process; provided, however, that in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the proceeding is not dismissed within [***] after the filing thereof.

		
	(b)
	Effect of Termination for Cause on License.

		
	(i)
	Termination by Tigercat for Cause.  In the event this Agreement is properly terminated by Tigercat under Section 12.03(a), Tigercat’s licenses pursuant to Section 2.01 shall become perpetual licenses, provided that Tigercat continues to make the payments to be made to Merck by Tigercat pursuant to Article VII.

		
	(ii)
	Termination by Merck for Cause.  In the event this Agreement is properly terminated by Merck under Section 12.03, the rights and licenses granted to Tigercat under Section 2.01 of this Agreement shall terminate and all rights to the Licensed Compound and the Licensed Products shall revert to Merck. In the event of termination under Section 12.03 as a result of a breach of Section 2.02, the Parties shall have the rights and obligations set forth in Section 12.05. In all other events of termination by Merck under Section 12.03, Tigercat shall, within [***] after the effective date of such termination, return or cause to be returned to Merck all Proprietary Information and Merck Know-How provided by Merck, as well as all Licensed Compounds and Licensed Products.

12.04    Effect of Termination Generally.  Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination, and the provisions of Sections 2.03, 9.01, 9.02, 9.03, 10.05, 10.06, 10.07, 12.01, 12.02(b), 12.03(b), 12.04, and 12.05, and Articles XI, XIII, and XIV shall survive the expiration or termination of this Agreement. Any expiration or early termination of this Agreement shall be without prejudice to the rights of any Party against another accrued or accruing under this Agreement prior to termination, including the obligation to pay milestone payments for any milestones achieved prior to such termination.
12.05    Licensed Product Reversion.  Upon termination of this Agreement in its entirety by Merck as a result of a breach of Section 2.02 or by Tigercat pursuant to Section 12.02, at Merck’s option and upon Merck’s written request, the following provisions shall apply:
		
	(a)
	Effective upon such termination, without further action by any Party, Merck shall have a worldwide, sublicensable, transferable, perpetual license from Tigercat, which shall be 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

exclusive in the Field, under any Tigercat Know-How and Tigercat Patent Rights existing at the time of termination that are necessary for and were actually used by Tigercat for the Development, Manufacture, or Commercialization of any Licensed Compound and/or Licensed Product. To the extent that the Development, Manufacture, or Commercialization of any Licensed Compound and/or Licensed Product by Merck or its sublicensee or assignee actually utilizes Tigercat Know-How or would, but for such license, infringe Tigercat Patent Rights, such license shall be royalty-bearing at the rate of [***] of the applicable Licensed Compound or Licensed Product. Merck’s license under this Section 12.05(a) shall be limited solely to the right to Develop, Manufacture and Commercialize any such Licensed Compound and/or Licensed Product in the Field in the Territory.
		
	(b)
	Tigercat shall reasonably cooperate with Merck in order to enable Merck to assume responsibility for the Development, Manufacture and Commercialization of all Licensed Compounds and Licensed Products then being Developed, Manufactured or Commercialized by Tigercat. Such cooperation and assistance shall be provided in a timely manner, not to exceed six (6) months, and shall include the following, without limitation:

		
	(i)
	Tigercat shall transfer to Merck (or its nominee) all INDs, NDAs and Marketing Authorizations, and all supporting documentation for such filings and applications, made or obtained by Tigercat or its Affiliates or any of its sublicensees to the extent relating to any Licensed Compound and/or Licensed Product then being Commercialized or in Development.

		
	(ii)
	Tigercat shall assign to Merck all of its rights in any trademarks claiming any proprietary name approved by a Regulatory Authority for any Licensed Product or utilized by Tigercat for any Licensed Product (i.e., a Licensed Product’s “brand name”) and shall transfer to Merck all of its rights in any domain names containing such trademarks, in each case to the extent that such trademarks have actually been or are planned to be utilized by Tigercat in connection with the Commercialization of Licensed Product in the Field, but excluding any trademarks which apply to products other than just Licensed Products. Any assignment or transfer to Merck pursuant to this Section 12.05(b)(ii) shall be at no cost to Merck.

		
	(iii)
	Tigercat shall transfer to Merck (or its nominee), to the extent not previously provided, a copy of all Tigercat Know-How in its possession or under its control relating to any Licensed Compound and/or Licensed Product then being Commercialized or in clinical Development by Tigercat and reasonably necessary or useful for its continued Development, Manufacture and/or Commercialization, including without limitation all information contained in Tigercat’s regulatory and/or safety databases, all in the format then currently maintained by Tigercat.

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	(iv)
	Upon the request of Merck, Tigercat shall transfer to Merck, at a price to be agreed upon in good faith by the Parties, that shall not be more than [***] of Tigercat’s fully allocated Manufacturing cost for the Licensed Compound and/or Licensed Product, all quantities of Licensed Compound and Licensed Product in the possession of Tigercat or its Affiliates (including, without limitation, clinical trial supplies and Licensed Product intended for Commercialization).

The Parties shall use Diligent Efforts to complete the transition of the Development, Manufacture and Commercialization of all Licensed Compounds and Licensed Products from Tigercat to Merck pursuant to this Section 12.05 as soon as is reasonably possible.
ARTICLE XIII - DISPUTE RESOLUTION
13.01    Informal Discussions.  Except as otherwise provided herein, in the event of any controversy or claim arising out of or relating to this Agreement, or the rights or obligations of the Parties hereunder, or the relationship between the Parties with respect to Licensed Compound or Licensed Product, the Parties shall first try to settle their differences amicably between themselves. Any Party may initiate such informal dispute resolution by sending written notice of the dispute to the other Parties, and within thirty (30) days after such notice appropriate representatives of the Parties shall meet for attempted resolution by good faith negotiations. If such representatives are unable to resolve such disputed matter within thirty (30) days, any Party may refer the matter by written notice to the others to the Worldwide Head of Licensing, Merck Research Laboratories, or his designee, and the Chief Executive Officer of Tigercat, or his designee, for discussion and resolution. If such individuals or their designees are unable to resolve such dispute within thirty (30) days of such written notice or if the recipient Party does not respond within thirty (30) days of such written notice, any Party may initiate arbitration proceedings in accordance with the provisions of this Article XIII.
13.02    Arbitration.  All disputes arising out of or relating to this Agreement, or the rights or obligations of the Parties hereunder, or relating in any way to the relationship between the Parties with respect to any Licensed Compound or Licensed Product, shall be finally and exclusively settled by arbitration by a panel of three (3) arbitrators, provided such dispute is not an “Excluded Claim”. As used in this Section, the phrase “Excluded Claim” shall mean a dispute, controversy or claim that concerns (a) the validity or infringement of a patent, trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory.
		
	(a)
	The arbitration proceeding shall be conducted under the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) with such proceedings to be held in New York, New York. In all cases, the arbitration proceedings shall be conducted in English, and all documents that are submitted in the proceeding shall be in English. Judgment upon the award rendered by arbitration may be issued and enforced by any court having competent jurisdiction.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	(b)
	If a Party intends to begin an arbitration to resolve a dispute, such Party shall provide written notice to the other Parties, informing the other Parties of such intention and any statement of claim required under the applicable arbitration rules (as determined in accordance with Section 13.02(a)). Within twenty (20) business days after its receipt of such notice, the other Parties shall, by written notice to the Party initiating arbitration, add any additional issues to be resolved that would be considered mandatory counterclaims under New York law. For clarity, the resolution of any disputes regarding such counterclaims shall be conducted in the same proceedings as the initial claims.

		
	(c)
	Within forty-five (45) days following the receipt of the notice of arbitration, the Party referring the matter to arbitration shall appoint an arbitrator and promptly notify the other Parties of such appointment. If (i) the initiating Party is Tigercat, then Merck shall, upon receiving such notice, appoint a second arbitrator within twenty-one (21) days, or (ii) alternatively, the initiating Party is Merck, then Tigercat shall, upon receiving such notice, appoint a second arbitrator within twenty-one (21) days, and (iii) in either case, the two (2) arbitrators shall, within fifteen (15) days of the appointment of the second arbitrator, agree on the appointment of a third arbitrator who will act with them and be the chairperson of the arbitration panel. In the event that either Party shall fail to appoint an arbitrator within thirty (30) days after the commencement of the arbitration proceeding, the arbitrator shall be appointed by the AAA. In the event of the failure of the two (2) arbitrators to agree within sixty (60) days after the commencement of the arbitration proceeding to appoint the chairperson, the chairperson shall also be appointed by the AAA.

		
	(i)
	All of the arbitrators shall have significant legal or business experience in pharmaceutical licensing matters. The arbitrators shall not be employees, directors or shareholders of any Party or any of their Affiliates.

		
	(ii)
	Each Party shall have the right to be represented by counsel throughout the arbitration proceedings.

		
	(iii)
	To the extent possible, the arbitration hearings and award will be maintained in confidence.

		
	(iv)
	In any arbitration pursuant to this Agreement, the award or decision shall be rendered by a majority of the members of the panel provided for herein, with each member having one (1) vote. The arbitrators shall render a written decision regarding their resolution of the dispute that shall set forth in reasonable detail the facts of the dispute and the reasons for their decision. The decision of the arbitrators shall be final and non-appealable and binding on the Parties.

13.03    Injunctive Relief.  By agreeing to arbitration, the Parties do not intend to deprive any competent court of such court’s jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment or other order in aid of the arbitration proceedings and the enforcement of any award or judgment. Without prejudice to such provisional remedies in aid of arbitration as may be 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

available under the jurisdiction of a national court, the court of arbitration shall have full authority to grant provisional remedies and to award damages for failure of any Party to respect the court of arbitration’s order to that effect.
13.04    Expenses of Arbitration and Expert Determination.  Each Party shall bear its own attorneys’ fees, costs, and disbursements arising out of the arbitration, and Merck, on the one hand, and Tigercat, on the other hand, shall pay an equal share of the fees and costs of the arbitrators; provided, however, that the arbitrators shall be authorized to determine whether a Party is the prevailing Party, and if so, to award to that prevailing Party reimbursement for its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees and expenses, photocopy charges and travel expenses). Absent the filing of an application to correct or vacate the arbitration award as permitted by applicable law, each Party shall fully perform and satisfy the arbitration award within [***] of the service of the award.
ARTICLE XIV - MISCELLANEOUS
14.01    Assignment.  Neither party shall assign this Agreement without the prior written consent of the other Party; provided, however, either Party may assign this Agreement without the prior written consent of the other Party in connection with the sale of such Party (including, without limitation, through the sale of all or substantially all of such Party’s assets, through the sale of a controlling interest in the outstanding shares of such Party, or through any merger, reorganization, consolidation or combination of such Party). This Agreement shall be binding upon, and inure to the benefit of, each Party, its Affiliates, and its permitted successors and assigns. Each Party shall be responsible for the compliance by its Affiliates with the terms and conditions of this Agreement.
14.02    Governing Law.  This Agreement shall be governed, interpreted and construed in accordance with the laws of the State of New York, without giving effect to its conflict of law principles. Subject to the terms of this Agreement, all disputes under this Agreement shall be governed by binding arbitration pursuant to the mechanism set forth in Article XIII herein.
14.03    Waiver.  The waiver by any Party hereto of any right hereunder, or of any failure of another Party to perform, or of any breach by another Party, shall not be deemed a waiver of any other right hereunder or of any other breach by or failure of such other Party, whether of a similar nature or otherwise.
14.04    Independent Relationship.  Nothing herein contained shall be deemed to create an employment, agency, joint venture or partnership relationship between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or failure to act of the other Party. No Party shall have any power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever.
14.05    Export Control.  This Agreement is made subject to any restrictions concerning the export of products or technical information from the USA that may be imposed upon or related to Merck or Tigercat from time to time by the United States government. Furthermore, Tigercat 

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

agrees that it will not export, directly or indirectly, any technical information acquired from Merck under this Agreement or any products using such technical information to any country for which the United States government or any agency thereof at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the Department of Commerce or other agency of the United States government when required by an applicable statute or regulation.
14.06    Entire Agreement; Amendment.  This Agreement, including the Exhibits and Schedules hereto, the Services Agreement and the Equity Agreements set forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto and supersede and terminate all prior agreements and understandings between the Parties with regard to the subject matter of this Agreement. There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties other than as are set forth herein and therein. No subsequent alteration, amendment, change, waiver or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.
14.07    Notices.  Any notice required or permitted to be given or sent under this Agreement shall be hand delivered or sent by express delivery service or certified or registered mail, postage prepaid, or by facsimile transmission (with written confirmation copy by express delivery service or certified or registered mail) to the Parties at the addresses and facsimile numbers indicated below.
	
		
	if to Tigercat, to:

	Tigercat Pharma, Inc,
[***]

	if to Merck, to:
	Merck Sharp & Dohme Corp. 
[***]

	With a copy to:
	Merck Sharp & Dohme Corp. 
[***]

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

	
		
	and for patent-related notices, a copy to:
	Merck Sharp & Dohme Corp.
[***]

Any such notice shall be deemed to have been received on the earlier of the date actually received or the date [***] after the same was posted or sent. A Party may change its address or its facsimile number by giving the other Parties written notice, delivered in accordance with this Section 14.07.
14.08    Force Majeure.  Failure of any Party to perform its obligations under this Agreement (except the obligation to make payments when properly due) shall not subject such Party to any liability or place it in breach of any term or condition of this Agreement if such failure is due to any cause beyond the reasonable control of such non-performing Party (“Force Majeure”), unless conclusive evidence to the contrary is provided. Causes of non-performance constituting Force Majeure shall include, without limitation, acts of God, fire, explosion, flood, drought, war, riot, sabotage, embargo, strikes or other labor trouble, failure in whole or in part of suppliers to deliver on schedule materials, equipment or machinery, interruption of or delay in transportation, a national health emergency or compliance with any order or regulation of any government entity acting with color of right. The Party affected shall promptly notify the other Parties of the condition constituting Force Majeure and shall exert reasonable efforts to eliminate, cure and overcome any such causes and to resume performance of its obligations with all possible speed; provided that nothing herein shall obligate a Party to settle on terms unsatisfactory to such Party any strike, lockout or other labor difficulty, any investigation or other proceeding by any public authority or any litigation by any Third Party. If a condition constituting Force Majeure as defined herein exists for more than ninety (90) consecutive days, the Parties shall meet to negotiate a mutually satisfactory resolution to the problem, if practicable. If the Parties cannot in good faith reach a satisfactory resolution to the problem within sixty (60) days of meeting, the matter shall be handled pursuant to the dispute resolution provisions of Article XIII herein.
14.09    Severability.  If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement.
14.10    Counterparts.  This Agreement may be signed in any number of counterparts (including by facsimile or electronic transmission), each of which shall be deemed an original, but all of which shall constitute one and the same instrument. After facsimile or electronic transmission, the Parties agree to execute and exchange documents with original signatures.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

14.11    Captions.  The captions of this Agreement are solely for the convenience of reference and shall not affect its interpretation.
14.12    Further Actions.  Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

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Confidential treatment has been sought for portions of this agreement. The copy filed herewithin omits the information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties.
	
					
	MERCK SHARP & DOHME CORP.
	 
	TIGERCAT PHARMA, INC.

	 
	 
	 
	 
	 

	By:
	/s/ Roger Pomerantz, M.D., F.A.C.P.
	 
	By:
	/s/ James W. Larrick, M.D., Ph.D.

	Name:
	Roger Pomerantz, M.D., F.A.C.P.
	 
	Name:
	James W. Larrick, M.D., Ph.D.

	Title:
	World Wide Head of Licensing & Acquisitions and Knowledge Management 
Global Franchise Head for Infectious Diseases and Senior Vice President
	 
	Title:
	President

	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	For Purposes of Sections 9.01 and 11.12 only, 

	 
	 
	 
	 
	 

	 
	 
	 
	VELOCITY PHARMACEUTICAL HOLDINGS, LLC

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ David Collier

	 
	 
	 
	Title:
	Manager

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