Document:

EX-10.1

 Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

Superconductor Technologies Inc., a Delaware corporation (the “Company”) 

and 
 Clearday Naples LLC, a
Delaware limited liability company (the “Purchaser”) 
 June 30, 2020 

 SECURITIES PURCHASE AGREEMENT 

Table of Contents 
  

							
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	 
			
	 1.1.
	 	Definitions	  	 	1	 
		
	 ARTICLE 2 PURCHASE AND SALE
	  	 	4	 
			
	 2.1.
	 	Closing	  	 	4	 
			
	 2.2.
	 	Deliveries	  	 	4	 
			
	 2.3.
	 	Closing Conditions	  	 	5	 
			
	 2.4.
	 	Merger Agreement	  	 	6	 
		
	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES
	  	 	6	 
			
	 3.1.
	 	Representations and Warranties of the Company	  	 	6	 
			
	 3.2.
	 	Representations and Warranties of the Purchaser	  	 	10	 
		
	 ARTICLE 4 OTHER AGREEMENTS OF THE PARTIES
	  	 	15	 
			
	 4.1.
	 	Furnishing of Information	  	 	15	 
		
	 ARTICLE 5 MISCELLANEOUS
	  	 	16	 
			
	 5.1.
	 	Termination	  	 	16	 
			
	 5.2.
	 	Fees and Expenses	  	 	17	 
			
	 5.3.
	 	Entire Agreement	  	 	17	 
			
	 5.4.
	 	Notices	  	 	17	 
			
	 5.5.
	 	Amendments; Waivers	  	 	17	 
			
	 5.6.
	 	Headings	  	 	17	 
			
	 5.7.
	 	Successors and Assigns; Legends	  	 	17	 
			
	 5.8.
	 	No Third-Party Beneficiaries	  	 	18	 
			
	 5.9.
	 	Governing Law	  	 	18	 

  
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	 5.10.
	 	Survival; Indemnification	  	 	19	 
			
	 5.11.
	 	Execution	  	 	19	 
			
	 5.12.
	 	Severability	  	 	19	 
			
	 5.13.
	 	Replacement of Shares	  	 	20	 
			
	 5.14.
	 	Remedies	  	 	20	 
			
	 5.15.
	 	Saturdays, Sundays, Holidays, etc.	  	 	20	 
			
	 5.16.
	 	Construction	  	 	20	 
			
	 5.17.
	 	WAIVER OF JURY TRIAL	  	 	20	 

  

			
	Exhibit A:	  	Form of LLC Agreement
		
	Exhibit B:	  	Form of Registration Rights Agreement

  

  
 - ii - 

 SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement (this “Agreement”) is dated as of June 30, 2020 between Superconductor Technologies Inc., a
Delaware corporation (the “Company”), and Clearday Naples LLC, a Delaware limited liability company (the “Purchaser”). 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of
Section 5 of the Securities Act contained in Section 4(a)(2) thereof, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this
Agreement. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows: 
 ARTICLE 1

 DEFINITIONS 
 1.1.
Definitions.  
 In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the
following terms have the meanings set forth in this Section 1.1: 
 “Action” shall have the meaning ascribed to such
term in Section 3.1(i). 
 “Affiliate” means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act. 

“AIU” means Allied Integral United, Inc., a Delaware corporation. 

“Board of Directors” means the board of directors of the Company. 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States
or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1. 

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the
applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived, but
in no event later than the third (3rd) Trading Day following the date hereof. 
 “Commission” means the United States
Securities and Exchange Commission. 

 “Common Stock” means the common stock of the Company, par value $0.001 per
share, and any other class of securities into which such securities may hereafter be reclassified or changed. 
 “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 

“Company Counsel” means Proskauer Rose LLP, with offices located at 2029 Century Park East, Los Angeles, California 90067.

 “Delist Event” means any failure of the Company to remain listed on the Nasdaq Stock Market or any of its tiers,
including any adverse developments (such as loss of liquidity or trading volume) that may result therefrom, or any adverse developments in the Company’s hearing before a Nasdaq Hearing Panel. 

“Disclosure Schedules” means the Disclosure Schedules of the Company or the Purchaser (as the context requires) delivered
concurrently herewith, if any. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h). 

“Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction; provided, that the restrictions and encumbrances of the LLC Agreement and the Permitted Encumbrances shall not be included as a Lien. 

“LLC Agreement” means the Limited Liability Company Agreement of Naples JV, LLC, dated on or about the date hereof, by and
between the Company and Clearday Naples LLC, in substantially the form attached as Exhibit A hereto, as the same may be amended from time to time in accordance with the terms thereof. 

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b). 

“Material Permits” shall have the meaning ascribed to such term in Section 3.1(n). 

“Merger Agreement” means that certain Agreement and Plan of Merger by and among the Company, an affiliate of the Company and
AIU dated February 26, 2020, as amended by Amendment No 1 thereto, and as may be further amended. 
 “Naples LLC”
means Naples JV LLC, a Delaware limited liability company that, as of the Closing Date, shall own all of the equity interets of Property LLC. 

“Permitted Encumbrances” means the Liens set forth as exceptions to title in the title insurance policy that was delivered t
the Company. 

  
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 “Per Share Purchase Price” equals Forty Cents ($.40), subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Preferred LLC Interest” shall have the meaning ascribed thereto in the LLC Agreement. 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or to the Company’s or the Purchaser’s (as applicable) knowledge threatened. 

“Property” means the commercial real estate land, building and appurtences located at 8800 Village Drive, San Antonio, Texas.

 “Property LLC” means AIU 8800 Village Drive LLC, a Delaware limited liability company. 

“Purchaser Subsidiary” means any corporation, limited liability company, partnership, association or business entity of which
(x) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by the Purchaser, or (y) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of partnership, membership or other similar ownership interest thereof, or
the voting power thereof, is at the time owned or controlled, directly or indirectly, by the Purchaser. Except as otherwise expressly provided herein, Purchaser Subsidiary means, both as of the date hereof and as of the Closing, Naples LLC and
Property LLC and any other entity that comes within the definition of Purchaser Subisdiiary. 
 “Registration Rights
Agreement” means the Registration Rights Agreement, dated on or about the date hereof, among the Company and the Purchaser, in substantially the form of Exhibit B attached hereto. 

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e). 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

  
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 “Shares” means the shares of Common Stock issued or issuable to the
Purchaser pursuant to this Agreement. 
 “Subsidiary” means any significant subsidiary of the Company as defined under
Regulation S-X of the Securities Act and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof but before the Closing Date. 

“Trading Day” means a day on which the principal Trading Market is open for trading. 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing). 

“Transaction Documents” means this Agreement, the Registration Rights Agreement, the LLC Agreement, all exhibits and
schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

“Transfer Agent” means Computershare, the current transfer agent of the Company, with a mailing address of 250 Royall St.,
Canton, MA 02021 and a facsimile number of (781) 298-2866, and any successor transfer agent of the Company. 

ARTICLE 2 
 PURCHASE AND
SALE 
 2.1. Closing.  

On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to
purchase an aggregate of $1,600,000 (the “Subscription Amount”) of Shares as calculated pursuant to Section 2.2(a). The Purchaser’s Subscription Amount shall not be paid in cash; rather, the Subscription Amount shall be
deemed paid in full upon delivery of the Purchaser’s counterpart signature to the LLC Agreement and the transfer and assignment of the Preferred LLC Interests to the Company free and clear of all Liens. The Company shall deliver to the
Purchaser its Shares as determined pursuant to Section 2.2(a), and the Company and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth
in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree. Unless otherwise agreed, settlement of the Shares shall occur via any customary method selected by the
Company and reasonably acceptable to the Purchaser, including DWAC (as defined below), book entry or physical delivery. 
 2.2.
Deliveries. 
  

	 	(a)	 On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the
following: 

 (i) the Registration Rights Agreement duly executed by the Company; 

  
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 (ii) the LLC Agreement duly executed by the Company; and 

(iii) a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited
basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) (or via other method permitted by Section 2.1) Shares equal to the Subscription Amount divided by the Per Share Purchase Price, registered in
the name of such Purchaser; 
  

	 	(b)	 On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the
following: 

 (i) the Registration Rights Agreement duly executed by the Purchaser; 

(ii) evidence reasonably acceptable to the Company demonstrating that Naples LLC owns the Property LLC free and clear of all
Liens and 
 (iii) the LLC Agreement duly executed by the Purchaser and Naples LLC and evidence of the issuance of the
Preferred LLC Interest to the Company. 
 2.3. Closing Conditions. 

 

	 	(a)	 The obligations of the Company hereunder in connection with the Closing are subject to the following conditions
being met: 

 (i) the accuracy in all material respects (or, to the extent representations or warranties
are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein in which case they shall be
accurate as of such date); 
 (ii) all obligations, covenants and agreements of the Purchaser required to be performed at or
prior to the Closing Date shall have been performed; 
 (iii) the Company is reasonably satisfied with the accounting and
financial supplemental due diligence information to be provided by the Purchaser regarding the Purchaser and the Purchaser Subsidiaries, and with the accounting for the transactions contemplated hereby as a net increase to the Company’s
stockholder’s equity in the amount at least equal to the Subscription Amount and shall not have reasonably determined that the Nasdaq or its Hearing Panel disapproves of, or deems inadequate, the transactions contemplated hereby; and 

(iv) the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement. 

  
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	 	(b)	 The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the
following conditions being met: 

 (i) the accuracy in all material respects (or, to the extent
representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in
which case they shall be accurate as of such date); 
 (ii) all obligations, covenants and agreements of the Company required
to be performed at or prior to the Closing Date shall have been performed; and 
 (iii) the delivery by the Company of the
items set forth in Section 2.2(a) of this Agreement. 
 2.4. Merger Agreement. 

The parties agree, and shall cause their Affiliates to agree, that this Agreement be and hereby is approved and consented to for all purposes
under the Merger Agreement. 
 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES 

3.1. Representations and Warranties of the Company. 

Except as set forth in the Disclosure Schedules and/or the SEC Reports, which Disclosure Schedules shall be deemed a part hereof and which
Disclosure Schedules and SEC Reports shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules or as reasonably evident from the SEC Reports, the
Company hereby makes the following representations and warranties to the Purchaser: 
 (a) Subsidiaries. All of the material direct and
indirect Subsidiaries of the Company are disclosed in the SEC Reports. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no
subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded. 
 (b) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or
articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in
which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in:
(i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results 

  
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of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries (whether or not “significant”), taken as a whole, or (iii) a
material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), but excluding a Delist Event, a “Material Adverse
Effect”; and such term shall also apply to the Purchaser and the Purchaser Subsidiaries, mutatis mutandis, where the context so requires) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification. 
 (c) Authorization; Enforcement. The Company has the
requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and
no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to
which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 

(d) No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a
party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of
any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or
any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses
(ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect. 

  
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 (e) Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by
the Company of the Transaction Documents, other than: (i) application(s) to each applicable Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby, (ii) the filing of Form D with the
Commission and any Current Report on Form 8-K that may be required and (iii) such filings as are required to be made under applicable state securities laws (collectively, the “Required
Approvals”). 
 (f) Issuance of the Shares. The Shares are duly authorized and, when issued and paid for in accordance with this
Agreement by the transfer and assignment of the interests in Naples LLC and the execution and delivery by Naples LLC and the Purchaser of the Naples LLC Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company. 
 (g) Capitalization. The capitalization of the Company is as set forth in the SEC Reports, subject to the
issuance of additional shares that are not required to be reported on a Form 8-K by the Company. The Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the
conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act or such number of shares that are not required to be reported on a Form 8-K by the Company. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a
result of the purchase and sale of the Shares, and except for the Merger Agreement, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Shares will not obligate the Company or any
Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such
securities. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the
outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance in all material respects with all federal and state securities laws, and none of such outstanding
shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities granted by the Company. No further approval or authorization of any stockholder, the Board of Directors or others is required for the
issuance and sale of the Shares. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or
among any of the Company’s stockholders. 

  
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 (h) SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the
Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared
in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 

(i) Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action” and such term shall also apply to the Purchaser and the Purchaser Subsidiaries, mutatis mutandis, where the context so requires) which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor, to the
Company’s knowledge, any director or officer thereof, is or has been within the past three (3) years the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of
fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has
not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

  
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 (j) Private Placement. Assuming the accuracy of the Purchaser’s representations and
warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchaser as contemplated hereby. 

3.2. Representations and Warranties of the Purchaser. 

The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a
specific date therein, in which case they shall be accurate as of such date and except that a Lien as referred to in this Section shall not include the obligations of Purchaser under this Agreement or the LLC Agreement): 

(a) Subsidiaries. All of the direct and indirect Purchaser Subsidiaries, as of the Closing Date, are set forth on Schedule 3.2(a). The
Purchaser or its Affiliates has the full power and authority, without the requiring the consent of any other Person or governmental entity to transfer all of its right, title and interest in and to the Property LLC to Naples LLC free and clear of
all Liens. As of the Closing Date, the sole equity owner of the Property LLC is Naples LLC. The Purchaser owns, directly or indirectly, all of the capital stock or other equity interests of each Purchaser Subsidiary free and clear of any Liens, and
all of the issued and outstanding shares of capital stock (or other equity interests) of the Purchaser Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights
to subscribe for or purchase securities. 
 (b) Organization and Qualification. The Purchaser and each of the Purchaser Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate power and authority to own and use its properties and assets
and to carry on its business as currently conducted. Neither the Purchaser nor any Purchaser Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Purchaser and the Purchaser Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in a Material Adverse Effect and no Proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 

(c) Authorization; Enforcement. The Purchaser has the requisite limited liability company power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents
by the Purchaser and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Purchaser and no further action is required by the Purchaser or any other Person in
connection herewith or therewith. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Purchaser and, when delivered in accordance with the terms hereof and
thereof, will constitute the valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except (i) as limited 

  
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by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. 

(d) No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents to which it is
a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Purchaser’s or any Purchaser
Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, result in the creation of any Lien upon any of the properties or assets of the Purchaser or any Purchaser Subsidiary, or give to others any rights of termination, amendment, anti-dilution or similar adjustments, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Purchaser or Purchaser Subsidiary debt or otherwise) or other understanding to which the Purchaser or any Purchaser Subsidiary
is a party or by which any property or asset of the Purchaser or any Purchaser Subsidiary is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Purchaser or a Purchaser Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Purchaser or a Purchaser
Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect. 

(e) Filings, Consents and Approvals. The Purchaser is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Purchaser of the Transaction Documents. 

(f) Capitalization. 

(i) The capitalization of Naples LLC is as set forth on Schedule 3.2(f). No Person has any right of first refusal, preemptive
right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any stock, partnership interest, joint venture interest, or other equity
ownership interest in the Purchaser or any Purchaser Subsidiary, or contracts, commitments, understandings or arrangements by which the Purchaser or any Purchaser Subsidiary is or may become bound to issue additional shares of stock, partnership
interest, joint venture interest, or other equity ownership interest, in each case, other than as set forth in the LLC Agreement. The transactions contemplated by the Transaction Documents will not obligate the Purchaser or any Purchaser Subsidiary
to issue shares of any stock, partnership interest, joint venture 

  
 11 

 
interest, or other equity ownership interest to any Person (other than the Company) other than as contemplated by this Agreement and the LLC Agreement. There are no outstanding securities or
instruments of the Purchaser or any Purchaser Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Purchaser or any Purchaser Subsidiary is or may become
bound to redeem a security of the Purchaser or such Purchaser Subsidiary. Neither Naples LLC nor the Property LLC has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the
outstanding equity securities of the Naples LLC are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance in all material respects with all federal and state securities laws, and none of such equity interests
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities granted by the Purchaser. 

(ii) The sole member of Property LLC is Naples LLC. 

(g) Financial Statements; No Liabilities; Related Party Debt. 

(i) The balance sheet of Property LLC provided to the Company as of December 31, 2019 (i) was prepared from, and is
consistent with, the books and records of Property LLC and (ii) has been prepared on an accrual basis in accordance with GAAP consistently applied throughout the periods covered thereby and (iii) presents fairly the financial condition and
member’s equity of Property LLC, except as provided in such balance sheet and subject to normal, recurring year-end adjustments (none of which would be material, individually or in the aggregate) and the
absence of notes. Property LLC is a sole purpose entity and has not conducted any material business activity other than the purchase of the Property and the payment of required operating expenditures of such property. Property LLC does not have any
debts or liabilities and there is no reasonable basis for any legal action with respect to any debt or liability, except for debts or liabilities (i) incurred in connection with the execution of this Agreement; (ii) liabilities reflected
on the face of the balance sheet provided to the Company; or (iii) of the type which have arisen since the acquisition of the Property in the ordinary course of business of a commercial office property (none of which are material (in view of
prior expenses for the Property) and none of which relate to breach of contract, breach of warranty, tort, infringement, violation of or liability under any Law or any Action). The Property LLC does not owe any money to, nor has it received any
advances from or have any liabilities to, any Affiliate of Property LLC, except such as have been irrevocably retired or repaid or contributed to the capital of Property LLC in full, and are considered fully extinguished under GAAP; provided,
that an Affilate of Property LLC leases space in the Property without any lease or payment. To the knowledge of the Purchaser, based on the recent broker price opinion and the purchase price paid for the Property, the fair market value of the
Property is, as of the date hereof and as of the Closing date, not less than the Subscription Amount. 
 (ii) Naples LLC is a
newly organized entity and does not have any assets or liabilities other than the statutory fees and registered agent fees for its organization and other than it is the sole member of Property LLC. 

  
 12 

 (h) Material Changes. Since December 31, 2019 (i) there has been no event, occurrence
or development that has had or that would reasonably be expected to result in a Material Adverse Effect on or with respect to Purchaser or any Purchaser Subsidiary, (ii) neither the Purchaser nor any Purchaser Subsidiary has incurred any
liabilities (contingent or otherwise) other than (A) trade payables and operating expenses of a commercial office building and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in the Purchaser’s financial statements pursuant to GAAP and (iii) the Purchaser and the Purchaser Subsidiaries have not altered, in any material respects, its method of accounting in a manner inconsistent with
GAAP. 
 (i) Litigation. There is no Action pending against Purchaser or any Purchaser Subsidiary or, to the Purchaser’s knowledge,
threatened, against the Purchaser or any Purchaser Subsidiary which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Preferred LLC Interests (as defined in the LLC
Agreement) or (ii) would, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect on Purchaser or any Purchaser Subsidiary. Neither the Purchaser nor any Purchaser Subsidiary, nor, to the
Purchaser’s knowledge, any director or officer thereof, is or has been within the past three (3) years the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of
fiduciary duty. 
 (j) Compliance. Neither the Purchaser nor any Purchaser Subsidiary: (i) is in default under or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Purchaser or any Purchaser Subsidiary under), nor has the Purchaser or any Purchaser Subsidiary received notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority,
including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not have
or reasonably be expected to result in a Material Adverse Effect. 
 (k) Environmental Laws. The Purchaser and Purchaser Subsidiaries
(i) are in compliance with all Environmental Laws; (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance
with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect on Purchaser
or any Purchaser Subsidiary. 
 (l) Regulatory Permits. The Purchaser and the Purchaser Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such permits would not reasonably be expected to result in a Material
Adverse Effect (“Purchaser Material Permits”), and neither the Purchaser nor any Purchaser Subsidiary has received any notice of proceedings relating to the revocation, violation or modification of any Purchaser Material Permit.

  
 13 

 (m) Licenses. Each of the Purchaser Subsidiaries is duly licensed to conduct its business,
as applicable, in each jurisdiction where the conduct of the business requires such licensing, and is in compliance in all material respects with all laws requiring such licensing and is not subject to any material liability by reason of the failure
to be so licensed. There are no proceedings pending or, to the knowledge of Purchaser, threatened that may result in the revocation, cancellation or suspension, or any adverse modification, of any such material licenses. 

(n) Title to Assets. Property LLC has good and marketable title in fee simple to all real property owned by it (includling the Property) and
good and marketable title in all tangible personal property owned by them that is material to its business, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by Property LLC, and (ii) Liens for the payment of federal, state or other taxes in the ordinary course, none of which are delinquent in any material respect. 

(o) Issuance of the Equity. The limited liability company interests to be issued to the Company pursuant to the LLC Agreement are duly
authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Purchaser or the LLC other than under the
terms of the LLC Agreement. 
 (p) Disclosure. All of the disclosure furnished by or on behalf of the Purchaser to the Company regarding the
Purchaser and Purchaser Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct in all material respects, and does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 

(q) Understandings or Arrangements. Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect
arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares, other than a distribution or transfer to an Affiliate (this representation and warranty not limiting such Purchaser’s right to sell
the Shares in compliance with applicable federal and state securities laws). 
 (r) Experience of Such Purchaser. Purchaser, either alone or
together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the
merits and risks of such investment. Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment. 

  
 14 

 (s) Access to Information. Purchaser acknowledges that it has had the opportunity to review
the Transaction Documents (including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the
Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company and its financial condition, results of operations, business,
properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment. 
 (t) Certain Transactions and Confidentiality. Other than
consummating the transactions contemplated hereunder, Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of
the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the
transactions contemplated hereunder and ending immediately prior to the execution hereof. 
 (u) General Solicitation. Such Purchaser is not
purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or, to the
knowledge of such Purchaser, any other general solicitation or general advertisement. 
 ARTICLE 4 

OTHER AGREEMENTS OF THE PARTIES 

4.1. Furnishing of Information. 

The Purchaser shall, until the Closing, and shall cause its Affiliates to, afford the Company and its advisors with reasonable access during
business hours, at the Company’s request, to all due diligence information (legal, business, financial and accounting) as it may reasonably request, including access to employees and advisors, regarding the Purchaser and the Purchaser
Subsidiaries (whether in the possession of the Purchaser or its Affiliates), and shall allow copies to be made thereof, all of which shall be subject to the existing confidentiality agreement between the Company and AIU. 

4.2. Reservation of Common Stock. 

As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive
rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement. 

4.3. Transfer Restriction. 

The Purchaser covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will, directly or
indirectly, including through transfer of ownership in the Purchaser or its parent entities, execute or permit any sale or assignment, including Short Sales, of or with respect to any of the Shares (as the same may be ratably adjusted for any splits
or combinations) during the period commencing with the Closing of this Agreement and ending at such time that the Merger Agreement has been terminated in accordance with its terms. 

  
 15 

 ARTICLE 5 

MISCELLANEOUS 
 5.1.
Termination. 
 Without prejudice to other remedies which may be available to the parties pursuant to this Agreement, this Agreement
may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: 
 (a) Mutual Consent.
By mutual written consent of the Company and the Purchaser; 
 (b) Breach of Representations, Warranties, Covenants or Agreements.

 (i) By the Purchaser upon delivery of written notice to the Company, if there has been a breach of any representation,
warranty, covenant, obligation or agreement made by the Company in this Agreement, which breach (A) would give rise to the failure of a condition set forth in Section 2.3(b)(i) and (B) (I) cannot be cured by the End Date or
(II) if capable of being cured, shall not have been cured by the earlier of (x) ten (10) calendar days following receipt of written notice from the Buyer of such breach and (y) the date that is three (3) calendar days prior to
the End Date; 
 (ii) By the Company upon delivery of written notice to the Purchaser, if there has been a breach of any
representation, warranty, covenant or agreement made by the Purchaser in this Agreement, which breach (A) would give rise to the failure of a condition set forth in Section 2.3(a)(i) and (B)(I) cannot be cured prior to the End Date or
(II) if capable of being cured, shall not have been cured by the earlier of (x) ten (10) calendar days following receipt of written notice from the Company of such breach and (y) the date that is one (1) calendar day prior to the
End Date; 
 (c) End Date. By either the Company or Purchaser upon delivery of written notice to the other if the Closing has not
occurred on or before 5:00 p.m., Eastern time, on July 6, 2020 (the “End Date”); provided that a party will not be entitled to terminate this Agreement pursuant to this Section 5.1(c) if such Person’s breach of, or
failure to fulfill any obligation under, this Agreement or any other Transaction Document has been the primary cause of the failure of the Closing to occur on or prior to such time on the End Date; 

(d) Rights Cumulative. In the event of any termination of this Agreement by either the Company or Purchaser as provided in
Section 5.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of any Party or any of its Affiliates to any other Person by virtue of, arising out of or otherwise in connection with this
Agreement or any other Transaction Document, except that nothing in this Agreement or any other Transaction Document will relieve any party for breach of contract or fraud. 

  
 16 

 5.2. Fees and Expenses. 

Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including,
without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied
in connection with the delivery of any Shares to the Purchasers. 
 5.3. Entire Agreement. 

The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to
the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 

5.4. Notices. 
 Any and
all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is
delivered via email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address
for such notices and communications shall be as set forth on the signature pages attached hereto. 
 5.5. Amendments; Waivers. 

No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an
amendment, by the Company and the Purchaser. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver
of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

5.6. Headings. 
 The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

5.7. Successors and Assigns; Legends. 

(a) This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may
not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser (other than by merger). 

  
 17 

 (b) Subject to the transfer restrictions herein, the Purchaser may, upon written notice,
assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Shares that is an Affiliate of the Purchaser, provided that such transferee agrees with the Company in writing to be bound, with
respect to the transferred Shares, by the provisions of the Transaction Documents that apply to the Purchaser. 
 (c) The certificates
representing the Shares shall contain a customary Securities Act restrictive legend and a restrictive legend noting the transfer restrictions required hereby by Section 4.3. The Securities Act legend will be removed in connection with the
registration of the Shares as are registered under the Securities Act pursuant to the Registration Rights Agreement or otherwise; or at such time as the Company receives a legal opinion reasonably satisfactory to it that such legend may be removed
as a result of compliance with Rule 144 under the Securities Act. 
 5.8. No Third-Party Beneficiaries. 

This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in this Section 5.8. 
 5.9.
Governing Law. 
 All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of
Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at
the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding. 

  
 18 

 5.10. Survival; Indemnification. 

(a) The representations and warranties contained herein shall survive the Closing and the delivery of the Shares and Preferred LLC Interests
for a period of three years after the Closing. 
 (b) Each party hereby agrees to indemnify the other and its respective Affiliates and each
of their respective officers, directors, stockholders, managers, members, partners, employees, agents, representatives, successors and assigns (collectively, the “Indemnified Parties”) and hold each of them harmless from and against
and pay on behalf of or reimburse any such Indemnified Party in respect of the entirety of any loss, damage, expense (including attorney’s fees and expenses), liability or claim (“Losses”), in each case, whether or not
involving a third party claim, which such Indemnified Party may suffer, sustain or become subject to, as a result of, arising out of, relating to or in connection with: (a) the breach or inaccuracy of any representation of such party contained
in this Agreement; and (b) the breach, non-compliance or non-performance of any covenant, agreement or obligation by such party contained in this Agreement, it
being acknowledged that the Purchaser and the Company shall not have any obligation to an Indemnified Party (except in the case of fraud) in excess of the sum of $1,600,000 plus reasonable expenses and legal fees incurred in connection with the
enforcement of such party’s indemnity rights hereunder and there shall not be any obligation with respect to the first $10,000 of Losses and further that no party shall be liable with respect to any exemplary or punitive damages that arise out
of or relate to this Agreement or any liability or responsibility assumed or retained hereunder. 
 5.11. Execution. 

This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with
the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. 
 5.12. Severability.

 If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

  
 19 

 5.13. Replacement of Shares. 

If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such
loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Shares. 

5.14. Remedies. 
 In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such
obligation the defense that a remedy at law would be adequate. 
 5.15. Saturdays, Sundays, Holidays, etc. 

If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business
Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 
 5.16. Construction. 

The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each
and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock
that occur after the date of this Agreement. 
 5.17. WAIVER OF JURY TRIAL. 

IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY UNDER THIS AGREEMENT, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

(Signature Pages Follow) 

  
 20 

 The parties hereto have caused this Securities Purchase Agreement to be duly executed by
their respective authorized signatories as of the date first indicated above. 
  

							
		
	THE COMPANY	  	PURCHASER
		
	Superconductor Technologies Inc.	  	Clearday Naples LLC
				
	By:	 	/s/ Jeff Quiram	  	By:	  	/s/ Jim Walesa
		 	Name: Jeffrey A. Quiram	  		  	Name: James Walesa
		 	Title: Chief Executive Officer	  		  	Title: Chief Executive Officer
		
	Address for Notice:	  	Address for Notice:
	15511 W. State Hwy 71,	  	8800 Village Drive
	Suite 110-105,	  	San Antonio, TX 78217
	Austin, TX 78738	  	Attn.:	  	James Walesa
	Attn.:	 	Jeffrey A. Quiram	  		  	E-mail:-jim@myclearday.com
		 	E-mail: jquiram@suptech.com	  		  	
	  
 With a copy to (which shall not constitute notice):

 
 Proskauer Rose LLP

2029 Century Park East
 Los Angeles, CA 90067

 
	  	Subscription Amount: $ 1,600,000 (one million six hundred thousand dollars) (payable in full through delivery of the signature page to the LLC Agreement and transfer and assignment to Purchaser of the Preferred Equity
Interest)
	 Attn.: Ben Orlanski, Esq, Matthew O’Loughlin, Esq.

Email: borlanski@proskauer.com and moloughlin@proskauer.com
	  	Shares of the Company to be received: Four Million shares of common stock of the Company.
		  		  	
		 		  	In consideration for its 100% ownership of the Purchaser and the benefits to be derived therefrom, and as a material inducement to the Company, the undersigned hereby agrees to be jointly and severally liable for the
oblgigations and liabilities of the Purchaser hereunder under Section 5.10(b):
			
		 		  	Allied Integral United, Inc.
				
		 		  	By:	  	/s/ Jim Walesa
		 		  		  	Name: James Walesa
		 		  		  	Title: Chief Executive Officer

  
 21 

 EXHIBIT A 

FORM OF LLC AGREEMENT 
 [attached
hereto] 

 EXHIBIT B 

FORM OF REGISTRATION RIGHTS AGREEMENT 

[attached hereto] 

 DISCLOSURE SCHEDULES 

OF THE COMPANY 
 AND

 OF THE PURCHASER 
 Schedule
3.2(a) 
 Purchaser Subsidiaries as of the Closing Date 

Naples JV, LLC (the Company) 
 AIU 8800 Village Drive, LLC, a
Delaware limited liability company 
 Schedule 3.2(f) 

Capitalization as of the Closing Date prior to the Closing 

Purchaser ® is the sole member of Naples JV, LLC 

Naples JV, LLC ® is the sole member of AIU 8800 Village Drive, LLCEX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT 

of 
 NAPLES JV, LLC

 LIMITED LIABILITY COMPANY AGREEMENT 

Of 
 NAPLES JV,
LLC 
 TABLE OF CONTENTS 
  

									
	 	 	 	  	Page	 
			
	 1.
	 	 Certain Defined Terms
	  	 	2	 
			
	 2.
	 	 Formation
	  	 	9	 
		 	 (a)
	 	 Formation; Name; Office
	  	 	9	 
		 	 (b)
	 	 Purposes
	  	 	9	 
		 	 (c)
	 	 Term
	  	 	9	 
		 	 (d)
	 	 Registered Office and Resident Agent
	  	 	9	 
		 	 (e)
	 	 Article 8 of the Uniform Commercial Code
	  	 	10	 
			
	 3.
	 	 Capital Contributions; LLC Interests
	  	 	10	 
				
		 	 (a)
	 	 Initial Capital Contributions
	  	 	10	 
		 	 (b)
	 	 Issuance of LLC Interests
	  	 	10	 
		 	 (c)
	 	 Certificates
	  	 	11	 
		 	 (d)
	 	 Schedule of LLC Interests
	  	 	11	 
		 	 (e)
	 	 No Interest in any other Capital Account
	  	 	11	 
		 	 (f)
	 	 Members’ Liability
	  	 	11	 
		 	 (g)
	 	 Uses of Capital Contributions; No Preferred Return
	  	 	11	 
		 	 (h)
	 	 Withdrawal of Capital
	  	 	11	 
		 	 (i)
	 	 Source of Distributions
	  	 	12	 
			
	 4.
	 	 Additional Capital Contributions
	  	 	12	 
				
		 	 (a)
	 	 Capital Call
	  	 	12	 
		 	 (b)
	 	 Mutual Consent
	  	 	12	 
		 	 (c)
	 	 Additional Capital Call Closing
	  	 	12	 
		 	 (d)
	 	 Capital Funding Default
	  	 	13	 
			
	 5.
	 	 Title to the Property of the Company
	  	 	15	 
				
		 	 (a)
	 	 Title to the Property of the Company
	  	 	15	 
			
	 6.
	 	 Transfer of LLC Interest
	  	 	15	 
				
		 	 (a)
	 	 General Restrictions
	  	 	15	 
		 	 (b)
	 	 Approved Transfers
	  	 	15	 
		 	 (c)
	 	 Conditions to an Approved Transfer
	  	 	16	 
		 	 (d)
	 	 No Admission of Third Party As A Member
	  	 	17	 
		 	 (e)
	 	 Remedies For Breach of Transfer Provisions
	  	 	17	 
			
	 7.
	 	 Right of First Offer
	  	 	17	 
				
		 	 (a)
	 	 ROFO Offer
	  	 	17	 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	Page	 
		 	 (b)
	 	 ROFO Acceptance
	  	 	18	 
		 	 (c)
	 	 ROFO Rejection
	  	 	18	 
		 	 (d)
	 	 ROFO Closing
	  	 	19	 
		 	 (e)
	 	 ROFO Closing Default
	  	 	20	 
			
	 8.
	 	 Governance
	  	 	20	 
				
		 	 (a)
	 	 Covenant by Each Member
	  	 	20	 
		 	 (b)
	 	 Board of the Company
	  	 	20	 
		 	 (c)
	 	 Member Meetings or Written Consents
	  	 	22	 
		 	 (d)
	 	 Limitations on the Authority of the Board
	  	 	22	 
		 	 (e)
	 	 Mutual Consent Not Required
	  	 	23	 
			
	 9.
	 	 [intentionally omitted]
	  	 	25	 
			
	 10.
	 	 Accounting Provisions
	  	 	25	 
				
		 	 (a)
	 	 Fiscal and Taxable Year
	  	 	25	 
		 	 (b)
	 	 Books and Accounts
	  	 	25	 
		 	 (c)
	 	 Financial Reports
	  	 	25	 
		 	 (d)
	 	 Tax Elections
	  	 	26	 
		 	 (e)
	 	 Expenses
	  	 	26	 
			
	 11.
	 	 Distributions and Allocations
	  	 	26	 
				
		 	 (a)
	 	 Distributions
	  	 	26	 
		 	 (b)
	 	 Withholding Taxes
	  	 	27	 
		 	 (c)
	 	 Allocations of Profits and Losses
	  	 	27	 
		 	 (d)
	 	 Special Allocations
	  	 	28	 
		 	 (e)
	 	 Other Allocation Rules
	  	 	30	 
		 	 (f)
	 	 Tax Allocations
	  	 	30	 
		 	 (g)
	 	 Tax Matters
	  	 	31	 
			
	 12.
	 	 Liquidation and Termination of the Company
	  	 	32	 
				
		 	 (a)
	 	 Mandatory Liquidation and Termination
	  	 	32	 
		 	 (b)
	 	 General
	  	 	32	 
		 	 (c)
	 	 Statements on Termination
	  	 	32	 
		 	 (d)
	 	 Priority on Liquidation
	  	 	32	 
		 	 (e)
	 	 Distribution of Nonliquid Assets
	  	 	33	 
		 	 (f)
	 	 Orderly Liquidation
	  	 	34	 
			
	 13.
	 	 Loans and Advances
	  	 	34	 
			
	 14.
	 	 Exculpation and Indemnification of Managers, Members and Affiliates
	  	 	34	 

  
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 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	Page	 
		 	 (a)
	 	 Exculpation
	  	 	34	 
		 	 (b)
	 	 Indemnification
	  	 	34	 
			
	 15.
	 	 Confidentiality; Non-Exclusivity
	  	 	36	 
				
		 	 (a)
	 	 Confidentiality
	  	 	36	 
		 	 (b)
	 	 Press Releases
	  	 	36	 
		 	 (c)
	 	 Non-Exclusivity
	  	 	36	 
		 	 (d)
	 	 Financial Reporting
	  	 	37	 
		 	 (e)
	 	 Inspection
	  	 	37	 
			
	 16.
	 	 Members’ Representations and Warranties
	  	 	37	 
			
	 17.
	 	 Amendment and Modification
	  	 	38	 
			
	 18.
	 	 Assignment
	  	 	38	 
			
	 19.
	 	 Further Assurances
	  	 	38	 
			
	 20.
	 	 Governing Law
	  	 	38	 
			
	 21.
	 	 Notices
	  	 	38	 
				
		 	 (a)
	 	 Initial Addresses
	  	 	38	 
		 	 (b)
	 	 Notices to Other Members
	  	 	39	 
		 	 (c)
	 	 Change of Address
	  	 	39	 
		 	 (d)
	 	 Deemed Delivery
	  	 	39	 
			
	 22.
	 	 Consent to Jurisdiction
	  	 	39	 
			
	 23.
	 	 Waiver of Jury Trial
	  	 	40	 
			
	 24.
	 	 Entire Agreement; Non-Waiver
	  	 	40	 
			
	 25.
	 	 Specific Performance and Injunctive Relief
	  	 	40	 
			
	 26.
	 	 Attorneys’ Fees
	  	 	41	 
			
	 27.
	 	 Severability
	  	 	41	 
			
	 28.
	 	 Cash Payments by and to Members
	  	 	41	 

  
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 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	Page	 
			
	 29.
	 	 Miscellaneous
	  	 	41	 

  

			
	SCHEDULE I	  	Schedule of Members and Percentage Interests.
	EXHIBIT A	  	Form of Certificate Representing LLC Interests

  

  
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 AMENDED AND RESTATED 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 NAPLES JV, LLC

 AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT of Naples JV, LLC, a Delaware limited liability company (the
“Company”), dated as of July 6, 2020 (this “Agreement”), by and among the following: 
 1.
the Company; 
 2. Superconductor Technologies Inc., a Delaware corporation (the “Superconductor Member”);
and 
 3. Clearday Naples LLC, a Delaware limited liability company (“Clearday Member,” and, together
with the Superconductor Member and any Person duly admitted as a member in the Company in accordance with the provisions of this Agreement, collectively, the “Members”). 

Unless otherwise expressly set forth in this Agreement, all capitalized terms used in this Agreement shall have the meaning ascribed thereto
in Section 1. 
 WHEREAS, on June 26, 2020 the Company was formed as a Delaware limited liability company pursuant to the Limited
Liability Company Act of the State of Delaware, as amended, Title 6 §§18-101 et seq. (the “Act”); 

WHEREAS, the Company is the sole Member of AIU 8800 VILLAGE DRIVE, LLC, a Delaware limited liability company (“Property
Owner”); 
 WHEREAS, the Superconductor Member and an affiliate of the Clearday Member are parties to that certain Agreement and
Plan of Merger dated as of February 26, 2020, as amended (the “Merger Agreement”); 
 WHEREAS, in connection with the
formation of the Company the Superconductor Member delivered to Allied Integral United, Inc., a Delaware corporation (“Clearday”), an affiliate of Clearday Member, shares of common stock of the Superconductor Member; 

WHEREAS, the original Limited Liability Company Agreement of the Company, dated as of June 26, 2020 (the “Original Agreement”),
provided for Common LLC Interests and Preferred LLC Interests, both of which were owned by the Clearday Member, and through transfers by the Clearday Member to its Affiliates, all of such Preferred LLC Interests have been transferred to the
Superconductor Member as of the date hereof, while the Clearday Member has retained all of its Common LLC Interests; 
 WHEREAS, the Members
desire to provide for the stability and continuity of the management of the affairs of the Company and to impose certain rights and restrictions with respect to the transfer or other disposition of their membership interests upon the terms and
conditions hereinafter set forth. 

 NOW, THEREFORE, in consideration of the mutual promises and agreements set forth in this
Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to amend and restate the Original Agreement in its entirety as follows: 

 

	 	1.	 Certain Defined Terms.  

For the purposes of this Agreement, the following terms used in this Agreement shall be defined as set forth in this Section 1 and terms
that are defined elsewhere in this Agreement are referenced in Schedule II: 
 (i) “Adjusted Capital Account
Deficit”. Means with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant taxable year, after: 

(A) crediting to such Capital Account any amounts that such Member is obligated to restore to the Company pursuant to Treasury
Regulations Section 1.704-1(b)(2)(ii)(b)(3), is treated as obligated to restore pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c), or is deemed to
be obligated to restore pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 

(B) debiting from such Capital Account the items described in Treasury Regulations Sections
1.704-1(b)(2)(ii)(d)(4), (5), and (6). 
 (C) The foregoing definition of Adjusted
Capital Account Deficit is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

(ii) “Affiliate”. With respect to any Person means: (i) any Person at the time directly or indirectly
Controlling, Controlled by or under direct or indirect common Control with such Person; and (ii) any executive officer or director (or a person with similar responsibilities) of such Person. 

(iii) “Approved Accountant”. Means Friedman LLP or Marcum LLP, or such other certified public accounting firm
approved by Mutual Consent. 
 (iv) “Bankruptcy Code”. Means United States Bankruptcy Code (Title 11,
U.S.C.), as amended. 
 (v) “Bankruptcy Event”. Means any of the following events: 

(A) filing any voluntary petition in bankruptcy pursuant to the Bankruptcy Code on behalf of the Company or any Subsidiary;

  
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 (B) not defending the filing of any involuntary petition under the
Bankruptcy Code against the Company or any Subsidiary; 
 (C) filing of any petition with respect to the Company or any
Subsidiary seeking reorganization or relief under any applicable law relating to bankruptcy or insolvency; 
 (D) not
objecting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or any Subsidiary or a substantial part of their respective assets; 

(E) making any assignment with respect to the Company or any Subsidiary for the benefit of creditors; or 

(F) taking of any action by the Company or any Subsidiary in furtherance of any such action described in this definition. 

(vi) “Board”. Means the board of managers of the Company. 

(vii) “Capital Account”. Means an account to be maintained for each Member in accordance with the Code and
Treasury Regulations, which, subject to any contrary requirements of the Code and Treasury Regulations, shall be: 
 (A)
increased by: 
 (1) the amount of money and the gross fair market value of property contributed by such Member to the
Company, if any, in accordance with the express terms of this Agreement; 
 (2) the amount of any Company liabilities that
are assumed by such Member pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(c); 

(3) allocations to such Member of Profits pursuant to Section 11; and 

(4) any items in the nature of income or gain which are specially allocated to such Member pursuant to Section 11 or
otherwise as expressly provided by this Agreement; and 
 (B) decreased by: 

(1) the amount of money and the gross fair market value of property distributed to such Member by the Company, in accordance
with the express terms of this Agreement; 

  
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 (2) the amount of such Member’s individual liabilities that are
assumed by the Company pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(c); 

(3) allocations to the Member of Losses pursuant to Section 11; and 

(4) any items in the nature of loss or deduction which are specially allocated to such Member pursuant to Section 11 of
this Agreement or otherwise as expressly provided by this Agreement, including Section 4(d)(ii)(A) 
 The Members’ respective
Capital Accounts shall be determined and maintained at all times in accordance with all the provisions of Treasury Regulations Section 1.704-1(b) and this definition and other provisions of this Agreement
relating to the maintenance of Capital Accounts and/or the determination and allocation of Profits, Losses, items thereof and items allocated pursuant to Section 11 shall be interpreted and applied in a manner consistent with such Treasury
Regulations. 
 (viii) “Capital Event Proceeds” shall consist of the net amount of cash received by the
Company from the sale, exchange, refinancing (net of amounts used to repay existing indebtedness), leveraged recapitalization (i.e., borrowing against assets and distribution of the proceeds of such borrowing), condemnation, casualty loss or other
disposition by the Company or the Property Owner of its assets outside of the ordinary course of business, less (i) the portion thereof disbursed by the Board for the payment of the Company’s debts and expenses and (ii) such other
reserves for the future debts, expenses and plans and contingencies of the Company as the Board may establish. Capital Event Proceeds shall include amounts distributed to the Company as an owner of another entity, including any Subsidiary (including
the Property Owner), to the extent that the amount distributed, in the hands of the distributing entity, is in the nature of Capital Event Proceeds. Amounts released from a reserve of Capital Event Proceeds shall be treated as Capital Event
Proceeds. 
 (ix) “Code”. Means the Internal Revenue Code of 1986, as amended. 

(x) “Common Member”. Means any Member that holds a Common LLC Interest. 

(xi) “Control”. Means the possession of the power to direct or cause the direction of, directly or indirectly,
the management of a Person, whether through ownership of voting rights, by contract or otherwise; and the terms “Controlling” and “Controlled” shall have a correlative meaning. 

(xii) “Depreciation”. Means, for each taxable year or other period, an amount equal to the depreciation,
amortization or other cost recovery deduction allowable with respect to an asset for the taxable year or other period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the

  
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beginning of the taxable year or other period, Depreciation will be an amount which bears the same ratio to the beginning Gross Asset Value as the federal income tax depreciation, amortization or
other cost recovery deduction for the taxable year or other period bears to the beginning adjusted tax basis, provided that if the federal income tax depreciation, amortization, or other cost recovery deduction for the taxable year or other period
is zero, Depreciation will be determined with reference to the beginning Gross Asset Value using any reasonable method selected by the Board in its sole discretion. 

(xiii) “Emergency Expenditure”. Means a payment obligation of the Company or one of its Subsidiaries that:
(a) is, at the time of the applicable Capital Call Funding Date, either past due or due within ten (10) days; and (b)(i) the nonpayment of such obligation would cause a violation of law, a Lien on the property or assets of the Company or
one of its Subsidiaries; or (ii) the payment of such obligation is required to prevent a foreclosure or other legal process against the Company or one of its Subsidiaries. 

(xiv) Fiscal Year” means (i) the period commencing on the date that the Company was formed and ending on
December 31, 2020, (ii) any subsequent twelve (12) month period commencing on January 1 and ending on December 31 or (iii) any portion of the period described in clause (ii) for which the Company is required to allocate
Net Profit, Net Loss and other items of Company income, gain, loss or deduction pursuant to Section 11(c). 
 (xv)
“Gross Asset Value”. Means, with respect to any asset, the following: 
 (A) The initial Gross Asset Value
of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as determined in accordance with paragraph (F) of this definition; 

(B) The Gross Asset Values of all assets of the Company shall be adjusted to equal their respective gross fair market values,
as determined in accordance with paragraph (F) of this definition, as of the following times: 
 (1) the acquisition of
an additional interest in the Company by any new or existing Member in exchange for more than a de minimis Capital Contribution; 

(2) the distribution by the Company to a Member of more than a de minimis amount of Company property as consideration for an
interest in the Company; and 
 (3) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g). Notwithstanding the foregoing, the adjustments pursuant to clauses (1) and (2) above shall be made only with the Mutual Consent that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members in the Company; 

  
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 (C) The Gross Asset Value of any Company asset distributed to any Member
shall be determined by the Mutual Consent as of the date of distribution in accordance with paragraph (F) of this definition; 

(D) The Gross Asset Value of the assets of the Company shall be increased (or decreased) to reflect any adjustments to the
adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and subsection (vi) of the definition of Profits and Losses; provided, however, that Gross Asset Value shall not be adjusted pursuant to this paragraph (D) to the extent
that an adjustment was made pursuant to paragraph (B) of this definition in connection with any transaction that would otherwise have resulted in an adjustment pursuant to this paragraph (D) of this definition; 

(E) In all other cases, the Gross Asset Value of an asset shall be its adjusted basis for federal income tax purposes; and 

(F) For purposes of determining the Gross Asset Value of any asset (other than cash), the gross fair market value shall be as
determined by Mutual Consent. 
 If the Gross Asset Value of an asset has been determined or adjusted pursuant to paragraph (A), (B), or
(D) of this definition, the Gross Asset Value of such asset shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses. 

(xvi) “Lien”. Means any mortgage, pledge, security interest, restriction or any other lien or other
encumbrance, in each case, other than the terms and provisions of this Agreement. 
 (xvii) “Losses”. Shall
have the meaning specified in the definition of “Profits and Losses.” 
 (xviii) “Manager”. Means
a manager of the Company that is a member of the Board. 
 (xix) “Member Nonrecourse Debt”. Means any
“partner nonrecourse debt” or “partner nonrecourse liability” as defined in Treasury Regulations Section 1.704-2(b)(4). 

(xx) “Member Nonrecourse Debt Minimum Gain”. Means a Member’s share of “partner nonrecourse debt
minimum gain” as determined pursuant to Treasury Regulations Section 1.704-2(i)(5). 

(xxi) “Member Nonrecourse Deductions”. Means “partner nonrecourse deductions”
as defined in Treasury Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2). 

  
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 (xxii) “Minimum Gain”. Means “partnership minimum
gain” as determined pursuant to Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d). 

(xxiii) “Net Invested Capital”. Means, with respect to the initial Preferred Member as of any given date, the
aggregate Capital Contributions of such Preferred Member, which is equal to $1,600,000. 
 (xxiv) “Net Unreturned
Invested Capital”. means, with respect to each Preferred Member as of any given date, such Preferred Member’s Net Invested Capital, less all amounts distributed to such Preferred Member (other than through tax distributions), but not
less than zero. 
 (xxv) “Nonrecourse Deductions”. Shall have the meaning set forth in Treasury Regulations Section 1.704-2(b)(1). 
 (xxvi) “Percentage Interest”. Means, with
respect to all Members, the percentage set forth opposite such Member’s name on Schedule A attached hereto. In the event any LLC Interest is Transferred in accordance with the provisions of this Agreement, the transferee of such LLC Interest
that is admitted as a Member shall succeed to the Percentage Interest of the transferor to the extent it relates to the Transferred LLC Interest. 

(xxvii) “Person”. Means any entity or individual, including any corporation, limited liability company,
partnership, fund, trust, foundation, government, government agency or authority. 
 (xxviii) “Preferred
Member”. Means any Member that holds a Preferred LLC Interests. 
 (xxix) “Profits and Losses”.
Means for each taxable year or other period, an amount equal to the Company’s taxable income or loss determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or deduction, whether or not
required to be stated separately pursuant to Code Section 703(a)(1), shall be included in taxable income or loss), with the following adjustments: 

(A) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits
or Losses shall be added to such taxable income or loss; 
 (B) Any Code Section 705(a)(2)(B) expenditures of the
Company (or expenditures treated as such pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i)) that are not otherwise taken into account in computing Profits or Losses shall be subtracted from
such taxable income or loss; 
 (C) If the Gross Asset Value of any Company asset is adjusted pursuant to paragraph
(ii) or (iii) of the definition of Gross Asset Value, the amount of such adjustment shall be taken into account in the year of such adjustment as gain or loss from the disposition of such asset, for purposes of computing Profits or Losses; 

  
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 (D) Gain or loss resulting from any disposition of Company property with
respect to which gain or loss is recognized for federal income tax purposes (or is deemed realized pursuant to paragraph (iii) above) shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the
adjusted tax basis of such property differs from its Gross Asset Value; 
 (E) In lieu of the depreciation, amortization, and
other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such taxable year or other period; 

(F) To the extent that a Code Section 734(b) or Code Section 743(b) adjustment is required to be taken into account
in determining Capital Accounts, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4), the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis
of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits or Losses; 

(G) Notwithstanding anything to the contrary in the definition of the terms “Profits” and “Losses,” any
items that are specially allocated pursuant to this Agreement other than as a part of a special allocation of Profits or Losses as such shall be excluded in computing Profits or Losses; and 

(H) For purposes of this Agreement, any deduction for a loss on a sale or exchange of Company property that is disallowed to
the Company under Code Section 267(a)(1) or Code Section 707(b) shall be treated as a Code Section 705(a)(2)(B) expenditure. 

(xxx) “Property Owner Interests”. Means all of the limited liability company interests in Property Owner. 

(xxxi) “Subsidiary”. With respect to any specified Person, means each Affiliate in which more than 50% of the
economic interests in the Affiliate is owned by the specified Person. 
 (xxxii) “Third Party”. Means any
Person that is not a Member. 
 (xxxiii) “Transfer”. Means to sell, exchange, assign, pledge, hypothecate or
otherwise encumber or dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law), directly or indirectly, at any tier of ownership, all or any fraction of an LLC Interest of a Member in the
Company or the entering into of any agreement as a result of which any other Person shall have rights with respect to a Member’s LLC Interest. A Transfer shall also include, with respect to a Member that is not a natural person, the direct or
indirect sale, transfer, exchange, assignment, pledge, hypothecation or other encumbrance or disposition of any interest in any such Member by any direct or indirect owner thereof. 

  
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 (xxxiv) “Treasury Regulations”. Means permanent and
temporary regulations promulgated (and, subject to consent of all of the Members as regulations proposed) by the United States Department of the Treasury, as such regulations may be lawfully changed from time to time. 

 

	 	2.	 Formation. 

(a) Formation; Name; Office.  

The Clearday Member formed the Company under and pursuant to the Act to be conducted under the name “Naples JV, LLC”. The business
office of the Company shall be 8800 Village Drive, 2nd Floor, San Antonio, Texas 78217 or at such other place or places as the Board may from time to time designate. 

(b) Purposes.  

The purposes for which the Company has been formed are: 

(i) to directly or through one or more of its subsidiaries, hold, manage, finance or refinance and dispose of the investment of
the Company in the Property Owner; and 
 (ii) to engage in any other lawful business or purpose from time to time determined
by the Mutual Consent of the Members; 
 (iii) to engage in all activities necessary, customary, convenient or incident to
any of the foregoing, including without limitation, conducting all operations of the Company and its Subsidiaries. 
 (c) Term.
 
 This Company continues since the Original Agreement and this Agreement shall commence on the date of this Agreement and shall end
upon the termination of this Agreement as provided in Section 12. 
 (d) Registered Office and Resident Agent.  

The registered office and the resident agent of the Company shall be as designated in the certificate of formation of the Company (the
“Certificate”) or any amendment thereof. The registered office and the resident agent may be changed from time to time by the Board in accordance with the Act. If the resident agent shall ever resign, then the Board shall promptly
appoint a successor resident agent and shall file an appropriate amendment to the Certificate. 

  
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 (e) Article 8 of the Uniform Commercial Code.  

The LLC Interests shall for all purposes of the Uniform Commercial Code (as adopted by the State of Delaware) constitute
“Securities”, as such term is defined by Article 8 thereof. 
  

	 	3.	 Capital Contributions; LLC Interests. 

(a) Initial Capital Contributions. 

(i) Simultaneously with the execution and delivery of this Agreement, each Member hereby is deemed to have contributed to the
Company assets with a Gross Asset Value equal to the following: 
 (A) The Clearday Member: $1,600,000.00 

(B) The Superconductor Member: $1,600,000.00. 

(ii) The initial capital contribution of each Member pursuant to this Section 3(a) is referred to in this Agreement as an
“Initial Capital Contribution”. The Initial Capital Contribution of each Member together with any other contribution to the Company’s capital (except, as provided in Section 4(d)(ii)(A), for the interest contributed by a
Defaulting Member with respect to its Capital Default Loan), including any Additional Capital Contribution, is referred to in this Agreement as a “Capital Contribution”. 

(b) Issuance of LLC Interests.  

(i) In consideration of the foregoing, on the date of this Agreement the Company shall recognize, acknowledge and reflect on
its books that each Member holds and owns as of the date hereof (by virtue of prior issuance or transfer) a limited liability company interest (as defined by the Act) in the Company (a “LLC Interest”) as follows: 

(A) the Superconductor Member, a LLC Interest with the preferences in the liquidation and dissolution of the Company set forth
in Section 12(d) (“Preferred LLC Interests”), which interests have a Percentage Interest of such class of LLC Interests equal to 100% of such class of LLC Interests and a Percentage Interest in the Company as set forth in
Schedule I to this Agreement; and 
 (B) Clearday Member a LLC Interest that is pari passue with the Preferred LLC Interests
in all respects, other than the economic rights in the liquidation and dissolution of the Company set forth in Section 12(d) (“Common LLC Interests”), which interests have a Percentage Interest of such class of LLC Interests
equal to 100% of such class of LLC Interests and a Percentage Interest in the Company as set forth in Schedule I to this Agreement. 

  
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 (ii) The other rights, benefits and preferences of the Preferred LLC
Interests and Common LLC Interests, and the obligations and restrictions with respect thereto are as provided in this Agreement. 
 (c)
Certificates.  
 The LLC Interests of the Company shall be represented by a certificate in the form attached hereto as
Exhibit A. Each certificate representing LLC Interests shall have the legend endorsed thereon in the form provided in Exhibit A and such other legends as may be approved from time to time by the Board. Each such certificate shall be signed in the
name of the Company by the Manager designated by the Board in the manner approved by the Board. The Company shall issue a new certificate to replace a lost, mutilated, stolen or destroyed certificate pursuant to the procedures then approved by the
Board. Any such certificate may note the number of units (each, a “Unit”) represented by such LLC Interests. As of the initial date of this Agreement, there shall be 50 Units representing the Common LLC Interests and 50 Units
representing the Preferred LLC Interests. 
 (d) Schedule of LLC Interests.  

Schedule I shall reflect the name and address of each Member and the Percentage Interest of each Member. Schedule I shall be amended by the
Board to reflect any changes to the Percentage Interest of each Member expressly permitted under this Agreement, including changes resulting from the redemption or sale of any LLC Interest or any Additional Capital Contribution. 

(e) No Interest in any other Capital Account.  

The provisions of this Section 3 shall not give any Member an interest in any amount credited to the capital account of any other Member.

 (f) Members’ Liability.  

Except as otherwise expressly provided in this Agreement, the liability of a Member, solely as Member, for any obligations, debts or
liabilities incurred by the Company (as opposed to such Member directly on its own behalf in its individual capacity) shall be limited to the aggregate amount of the Capital Contributions that such Member has made or is obligated to make to the
Company under the terms and provisions of this Agreement. 
 (g) Uses of Capital Contributions; No Preferred Return.  

All Capital Contributions shall be utilized by the Company for the purposes of the Company. Except as otherwise expressly provided in this
Agreement, no interest or preferred return shall accrue on any Capital Contribution. 
 (h) Withdrawal of Capital.  

Unless the prior unanimous written consent of the Members shall have been obtained and except as otherwise expressly provided in this
Agreement (including Section 4(d)(i)(A)(1)), no Member shall have the right to withdraw any part of such Member’s Capital Contributions prior to the liquidation and termination of the Company pursuant to Section 12. 

  
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 (i) Source of Distributions.  

No Member, Manager or any of their respective Affiliates shall be personally liable for the return of the Capital Contributions of any other
Member, or any portion thereof, it being expressly understood that any such return shall be made solely from the Company’s assets. 
  

	 	4.	 Additional Capital Contributions. 

(a) Capital Call.  

The Board shall provide a notice (a “Capital Call Notice”) to the Members promptly after it determines that the Company or
its Subsidiaries require funds in addition to their available cash to pay or otherwise discharge or settle their obligations. A Capital Call Notice will state: 

(i) the amount of funds to be contributed to the capital of the Company (“Additional Capital Contribution”);

 (ii) the proposed use for the Additional Capital Contribution; 

(iii) the aggregate Percentage Interests that are represented by such Additional Capital Contributions; and 

(iv) the date (“Capital Call Funding Date”) that the Members shall fund their pro rata share of the Additional
Capital Contribution (determined on the basis of their respective Percentage Interests as of the date of the Capital Call Notice), which date shall not be earlier than fourteen (14) days after the date that the Capital Call Notice is delivered,
provided that if the Additional Capital Contribution is required to pay an Emergency Expenditure, then the Capital Call Funding Date may be any date that from and after two (2) business days after the date that the Capital Call Notice is
delivered. 
 (b) Mutual Consent.  

The Capital Call Notice shall not be deemed effective unless and until there is Mutual Consent for such Capital Call Notice. 

(c) Additional Capital Call Closing.  

The closing of an Additional Capital Contribution shall be held at 10:00 a.m. (local time) at the principal offices of the Company on the
Capital Call Funding Date or at such other location or time as may be agreed by Clearday Member and the Superconductor Member. At the closing of an Additional Capital Contribution, each Member shall pay to the Company an amount equal to its
Percentage Interest (determined as of the date of the Capital Call Notice) multiplied by the aggregate amount of the Additional Capital Contribution stated in the Capital Call Notice. 

  
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 (d) Capital Funding Default.  

(i) Capital Default Loans. 

(A) In the event a Member (a “Defaulting Member”) does not fully fund the amount of the Additional Capital
Contribution to be funded by such Member on the Capital Call Funding Date and such default continues for three (3) business days (the date that such cure or grace period expires being the “Funding Default Date”), then the other
Member (“Non-Defaulting Member”), if such other Member fully paid the amount of its Additional Capital Contribution on or prior to the Funding Default Date, shall have the right to elect one
(but not both) of the following: 
 (1) demand and receive from the Company the full and immediate return of the Additional
Capital Contribution funded by the Non-Defaulting Member (the “Cancel Option”); or 

(2) provide a loan to the Company (a “Capital Default Loan”) in an amount (the “Shortfall
Amount”) equal to such portion of the Additional Capital Contribution not made by the Defaulting Member as of the Funding Default Date (the “Loan Option”). 

(B) If the Cancel Option is not exercised within five (5) business days after the Funding Default Date by the Non-Defaulting Member providing notice to such effect to the Company and the Defaulting Member, then the Cancel Option shall be forfeited and the Non-Defaulting Member shall
have the right, but not the obligation, to exercise the Loan Option (but will not have a right to withdraw its Additional Capital Contribution in accordance with this Section 4). 

(C) If the Cancel Option was not duly and timely exercised by the Non-Defaulting
Member, then the Non-Defaulting Member may exercise the Loan Option by providing the Company and the Defaulting Member(s) a notice to such effect on or prior to the date that is ten (10) business days
after the Funding Default Date. If the Non-Defaulting Member duly and timely exercised the Loan Option, then the Non-Defaulting Member shall make a Capital Default Loan
to the Company in an amount equal to the Shortfall Amount on or prior to the date that is fifteen (15) business days after the Funding Default Date, provided that if the Non-Defaulting Member fails to so
timely fund the Capital Default Loan then it will be deemed to have not elected the Loan Option or the Cancel Option and its prior Capital Contributions shall not be subject to return pursuant to Section 4(d)(i)(A)(1). 

(D) A Capital Default Loan shall accrue interest at the rate (the “Capital Default Loan Rate”) equal to the
lesser of: (i) twenty percent (20%), per annum, compounded annually on the basis of the actual number of days outstanding divided by the actual number of days (365 or 366) of the year; and (ii) the maximum interest rate permitted to be
charged by applicable law. Capital Default Loans shall 

  
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be paid prior to any distributions on account of any LLC Interests in the order made and as and when the Company has sufficient cash resources. No Capital Default Loan will increase the
Percentage Interest of a Member unless and to the extent that the amount of the Capital Default Loan is converted and then contributed to the Company’s capital in accordance with the provisions of Section 4(d)(ii). 

(ii) Conversion of a Capital Default Loan. 

(A) A Defaulting Member shall have the right, but not the obligation, to repay and redeem the Capital Default Loan or Capital
Default Loans made with respect to its failure to fully fund its Additional Capital Contribution on the Capital Call Funding Date by purchasing all but not less than all, of the Capital Default Loan by contributing cash to the Company in an amount
equal to the principal of the Capital Default Loan plus the accrued interest thereon (determined at the Capital Default Loan Rate to the date of such contribution) on any business day (on or before noon of such business day) that is on or prior to
ninety (90) days after the Funding Default Date. On the same date that the Defaulting Member makes such contribution, the Company shall repay to the Non-Defaulting Member the Capital Default Loan in full,
together with the interest thereon. On the date of such payment, the Percentage Interests of the Members shall be adjusted to reflect an Additional Capital Contribution by the Defaulting Member equal to the principal amount of the Capital Default
Loan but the amount of the interest with respect to such Capital Default Loan that was contributed to the capital of the Company by the Defaulting Member shall not be deemed a Capital Contribution for the purposes of this Agreement and shall not
increase or otherwise adjust the Percentage Interest of any Member. Notwithstanding the provisions of Section 11(c), all of the interest deduction recognized by the Company arising from the payment of interest on a Capital Default Loan shall,
if such loan is repaid as provided in this Section 4(d)(ii)(A), be allocated to the Non-Defaulting Member. 

(B) A Member that holds a Capital Default Loan shall have the right (“Conversion Right”), but not the
obligation, to contribute all or any part of the principal balance of the Capital Default Loan and the accrued and unpaid interest thereon to the capital of the Company and thereby increase its Percentage Interest. Such right may be exercised by a
Member that holds a Capital Default Loan by delivering the Company and the Defaulting Member a notice (“Conversion Notice”) to such effect at any time; the Conversion Notice shall state the amount (“Converted
Amount”) of principal and interest that is contributed to the Company’s capital by the Non-Defaulting Member. The conversion of the Capital Default Loan (or part thereof) to a Capital
Contribution shall be effective the date the Conversion Notice is delivered to the Company and the Defaulting Member. 

  
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 (C) A Member that holds a Capital Default Loan and delivers a Conversion
Notice shall be deemed to have made a Capital Contribution to the Company in an amount equal to 125% of the Converted Amount in satisfaction of the obligation of the Company to such Member in respect of that portion of the Capital Default Loan equal
to the Converted Amount. 
 (D) Unless and until the Conversion Right is duly exercised, a Capital Default Loan that was not
contributed to the capital of the Company shall remain outstanding and be repaid by the Company in accordance with the express terms of this Agreement. 
  

	 	5.	 Title to the Property of the Company. 

(a) Title to the Property of the Company.  

Title to the Property Owner Interest and any and all other property owned by the Company shall be held in the name of the Company. No Member,
individually or collectively, shall have, or shall be deemed to have, any title in or to any such property. 
  

	 	6.	 Transfer of LLC Interest. 

(a) General Restrictions.  

(i) Unless and until the Merger Agreement is terminated, no Member shall transfer any LLC Interest to any Person other than an
Affiliate of such Member. 
 (ii) Except as otherwise expressly provided in this Section 6, during the term of this
Agreement, no Member shall Transfer, or permit a Transfer of, any LLC Interest without the prior consent of the Superconductor Member and Clearday Member. 

(iii) Any Transfer effected or purported or attempted to be effected: (A) not in accordance with the terms and conditions
of this Agreement; (B) to an individual younger than 18 years of age or who has been adjudged incompetent or insane; or (C) to a person prohibited by law from owning any LLC Interest, shall be void ab initio and shall not
bind the Company or any Member. 
 (b) Approved Transfers.  

Notwithstanding the provisions of Section 6(a) and subject to the provisions of Section 6(c), each Transfer described in this
Section 6(b) (each, an “Approved Transfer”) shall be permitted: 
 (i) a Transfer may be effected after
the Merger Agreement has been terminated to a Third Party subject to the compliance with the provisions of Section 6(c) and Section 7; and 

(ii) any of the following Transfers may be consummated without the consent of any other Member and shall not be subject to the
ROFO under Section 7: 

  
 - 15 - 

 (A) Upper Tier Transfers. Any Transfer of ownership interests in a
Member. 
 (B) Affiliate. A Transfer to any Affiliate of a Member. 

(C) Company or Member. A Member may Transfer LLC Interests to the Company or any other Member pursuant to this Agreement
or otherwise. 
 (c) Conditions to an Approved Transfer.  

Notwithstanding the provisions of Section 6(b), an Approved Transfer shall not be permitted, in each case, if: 

(i) such Transfer requires the registration of any LLC Interests or any other security issued or issuable by the Company under
the Securities Act of 1933, as amended (the “1933 Act”), or any state securities or “Blue Sky” laws (other than notice filings in connection with a transaction exempt from the registration requirements of the 1933 Act);

 (ii) such Transfer requires the Company to register as an investment company under the Investment Company Act of 1940, as
amended; 
 (iii) such Transfer does not comply with all applicable federal and state securities and “Blue Sky”
laws; 
 (iv) such Transfer causes a violation of the Employee Retirement Income Security Act of 1974,as amended, by the
Company or any of its Members; 
 (v) such Transfer is to a person that is listed on the Specially Designated Nationals List
by the Office of Foreign Assets Control of the United States Department of the Treasury (or any successor or similar list); 

(vi) the Company does not receive all documentation reasonably requested by the Company to evidence that such Transfer is
permitted under this Agreement; and 
 (vii) with respect to a sale or other conveyance of LLC Interests, the Company does
not, prior to the effective date of such sale or conveyance, receive a notice stating the Percentage Interest that is sold or conveyed and the certificate representing such LLC Interests accompanied with an assignment of all of the LLC Interests
represented thereby executed in blank. 

  
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 (d) No Admission of Third Party As A Member.  

The Members each agree that they will not transfer or assign the record ownership of any of their LLC Interest to a Third Party unless such
Third Party purchases all, but not less than all, of the LLC Interest of such Member. Accordingly, no Third Party will hold, directly, any LLC Interest or be admitted in the Company as a member, unless otherwise determined by Mutual Consent or such
Third Party acquires all, but not less than all of the selling Member’s LLC Interest. In accordance with the express terms of this Agreement, any sale or conveyance of any part of the LLC Interest to a Third Party referred to in this Agreement
shall be effected by: (i) the Member or an owner of the Member transferring and assigning a separate class of limited liability company interests in itself and admitting the Third Party as a member in itself, with the Third Party holding (by
virtue of its ownership of equity interests in the selling Member or an owner of the Member) an indirect ownership of the LLC Interests of the selling Member, free and clear of all Liens other than the provisions of this Agreement; or (ii) as
an assignment or other Transfer of economic interest only; or (iii) if all but not less than all of the LLC Interest of the selling Member is sold in accordance with the express terms of this Agreement, by the transfer of record ownership of
such LLC Interest, in which case, upon such Third Party signing a counter-part to this Agreement, subject to the provisions of Section 6(c), such Third Party shall be admitted as a Member in the Company with all of the rights and obligations
under this Agreement and the Act of the selling Member with respect to such sold LLC Interest. 
 (e) Remedies For Breach of Transfer
Provisions.  
 In the event that there is any Transfer of LLC Interests that is not in compliance with the terms and conditions
of this Agreement, then: 
 (i) the Member holding the LLC Interests subject to such invalid Transfer shall be deemed to have
breached the terms of this Agreement and shall indemnify and hold harmless the Company and the other Member from and against any and all liabilities or damages to such party by reason of such act including, without limitation, actual attorneys’
fees and disbursements incurred by any such indemnified party in connection with any such act as and when such liabilities or damages are determined and such expenses are incurred; and 

(ii) the Member holding such LLC Interests shall lose all rights (including, without limitation, all governance rights and the
right to make an Additional Capital Contribution) and benefits under this Agreement other than the right to the return of its unreturned Capital Contributions as and when the Company distributes the Capital Contributions of the other Members. 

 

	 	7.	 Right of First Offer. 

(a) ROFO Offer. 

(i) Each Member may propose to sell the rights to any or all of its LLC Interests to a Third Party (such Member being referred
to in this Agreement as the “ROFO Selling Member”), for cash consideration subject to the right (the “ROFO”), but not the obligation, of the other Member (“ROFO Buying Member”) to purchase the
Percentage Interest of the LLC Interests whose rights are proposed to be sold by the ROFO Selling Member (“ROFO Interests”). For avoidance of doubt the ROFO is not applicable to any Approved Transfer pursuant to the provisions of
Section 6(b)(ii). 

  
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 (ii) A ROFO Selling Member shall, prior to soliciting any offer to sell any
ROFO Interests, provide the Company and the ROFO Buying Member a notice (“ROFO Notice”) stating the : 
 (A)
Percentage Interest represented by the ROFO Interests; 
 (B) aggregate purchase price (“ROFO Price”) for
the ROFO Interests; and 
 (C) amount of the purchase price deposit (“ROFO Deposit”) required to be provided
upon acceptance of the offer, which shall be equal to twenty percent (20%) of the ROFO Price. 
 (iii) It is acknowledged and
agreed that the ROFO Interests that are acquired by a Member shall be acquired by the ROFO Buying Member free and clear of all Liens. 
 (b)
ROFO Acceptance.  
 (i) A Member may exercise its ROFO by delivering a notice (the “ROFO Acceptance
Notice”) to the ROFO Selling Member to such effect on or prior to the date that is thirty (30) days after the date that the ROFO Notice was delivered to the ROFO Buying Member (the “ROFO Acceptance Period”). Any
exercise of the ROFO will irrevocably obligate the ROFO Buying Member to purchase all of the ROFO Interests in accordance with the provisions of this Section 7. 

(ii) On or prior to the date that is five (5) business days after the expiration of the ROFO Acceptance Period, the ROFO
Buying Member shall deliver the ROFO Deposit to the ROFO Selling Member, which shall be held by the attorney representing the ROFO Selling Member in such attorney’s escrow account; 

(iii) If the ROFO Buying Member does not timely provide the ROFO Acceptance Notice and the ROFO Deposit in accordance with the
provisions of Sections 7(b)(i) and 7(b)(ii), then the ROFO will be deemed rejected and the provisions of Section 7(c) shall apply. 

(c) ROFO Rejection.  

(i) If the ROFO Buying Member did not duly and timely deliver the ROFO Acceptance Notice and duly and timely pay the ROFO
Deposit in accordance with Sections 7(b)(i) and 7(b)(ii), then the ROFO will be deemed rejected and the ROFO Selling Member shall be entitled to sell all, but not less than all, of the ROFO Interests to a Third Party at an aggregate purchase
price equal to or greater than 98% of the ROFO Price and on such other terms and conditions agreed by the ROFO Selling Member and the Third Party that are no more favorable than the terms and conditions of the ROFO specified in the ROFO Notice (for
example, the ROFO Selling Member may provide representations, warranties and indemnities to the Third Party, but the beneficial interest in the ROFO Interest shall not be subject to any Lien), if each of the following conditions are satisfied: 

  
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 (A) The Third Party enters into a binding written contract to acquire the
ROFO Interests (a “Third Party ROFO Contract”) no later than sixty (60) days after the date that the ROFO was rejected or deemed rejected; 

(B) The Third Party is required to, and in fact provides, a purchase price deposit equal to the ROFO Deposit on the date that
the Third Party and the ROFO Selling Member enter into a Third Party ROFO Contract; 
 (C) The Third Party purchases the ROFO
Interests and pays for the ROFO Interests in full on the date that is not later than one-hundred and fifty days (150) after the date that the ROFO was rejected or deemed rejected. 

(ii) If the Third Party purchases the ROFO Interests in accordance with the foregoing provisions, then the Transfer shall be in
accordance with the provisions of Section 6(d). 
 (iii) If the ROFO Selling Member does not sell all the ROFO Interests
to a Third Party in accordance with the provisions of Section 7(c), then any future Transfer of such ROFO Interests will again be subject to the provisions of this Agreement, including Section 6. 

(d) ROFO Closing.  

If the ROFO was duly and timely accepted, then the ROFO Buying Member shall purchase, and the ROFO Selling Member shall sell, free and clear
of all Liens, the ROFO Interests at a closing (“ROFO Closing”) on the date that is ninety (90) days after the date that the ROFO Notice was delivered or such earlier date that is determined by the ROFO Buying Member that is at
least two (2) business days after notice to such effect by the ROFO Buying Member to the ROFO Selling Member. The ROFO Closing shall be held at 10:00 a.m. (local time) at the principal offices of the Company or on such date or at such other
location as agreed by the ROFO Selling Member and the ROFO Buying Member. At the ROFO Closing: 
 (i) the ROFO Selling Member
shall deliver to the Company the certificate representing all of the ROFO Interests, accompanied with an assignment of all of the LLC Interests represented thereby executed in blank; 

(ii) the ROFO Deposit and interest thereon shall be released from escrow and paid over to the ROFO Selling Member (the interest
on the ROFO Deposit shall not be credited to the purchase price); 
 (iii) the ROFO Buying Member shall pay the ROFO Selling
Member the balance of the ROFO Price that is payable by the ROFO Buying Member, giving full effect to the ROFO Deposit (excluding the interest on the ROFO Deposit) previously paid by the ROFO Buying Member; and 

  
 - 19 - 

 (iv) At or promptly after the ROFO Closing the Company shall: 

(A) supplement Schedule I to reflect such Transfer; and 

(B) deliver a notice to each Member that includes a copy of Schedule I, as so amended; and 

(C) issue and deliver to the ROFO Buying Member a certificate representing the ROFO Interests acquired by the ROFO Buying
Member. 
 (e) ROFO Closing Default.  

If the ROFO Buying Member fails to tender the ROFO Price at the ROFO Closing or otherwise fails to purchase the ROFO Interests at the ROFO
Closing in violation of this Agreement (and the ROFO Selling Member is not in default of this Section 7) and such breach or default continues for five (5) business days, then: 

(i) The ROFO Selling Member shall be entitled to retain the ROFO Deposit and interest thereon paid by the ROFO Buying Member;
and 
 (ii) The ROFO Buying Member shall no longer have a ROFO and the ROFO Selling Member shall be permitted to sell the
ROFO Interests to any Third Party; and 
 (iii) If the ROFO Buying Member or any of its Affiliates is a Manager, then such
Manager shall be removed by the Company and the other Member will be entitled to appoint a successor Manager of the Company and have the exclusive right to elect and appoint (or remove) the Managers; and 

(iv) If the Third Party purchases the ROFO Interests in accordance with the foregoing provisions, then, the Transfer shall be
in accordance with the provisions of Section 6(d). 
  

	 	8.	 Governance. 

(a) Covenant by Each Member.  

Each Member hereby agrees to promptly take, at any time and from time to time, all action necessary (including, without limitation, voting all
of its LLC Interests in person or by proxy, calling special meetings of the Members and executing and delivering written consents in lieu thereof) to effect the provisions of this Section 8. 

(b) Board of the Company.  

(i) Election and Appointment of the Board. For so long as Clearday Member is a Member, and so long as the Superconductor
Member is a Member: 

  
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 (A) each such Member shall have the right to elect and appoint a manager of
the Company (each such person, a “Manager”) and there shall be two Managers of a board of Managers (the “Board”) or such other number of Managers as approved by the Board. 

(B) The Manager that is appointed or elected by a Member may be removed by such Member for any reason or no reason and such
Member shall have the sole right to elect or appoint the successor to such Manager. 
 (C) Any such election or appointment
or removal shall be effective when the applicable Member provides a notice to such effect to the other Member. 
 (ii) Power
and Authority of the Board. 
 (A) Subject to Section 8(d), the Board shall have the exclusive power and authority to
conduct the business and affairs of the Company. Approval of, or action taken by, the Board in accordance with the terms of this Agreement shall constitute approval of, or action by, the Company, or by the Company on behalf of any Subsidiary, and
shall be binding on each of the Members. Notwithstanding any provision of this Agreement to the contrary, the Company shall not effect, and shall not permit any Subsidiary or provide a consent to any other Person to permit, any
transaction between the Company (or any Subsidiary) and any Member or any Affiliate of any Member, unless the terms and conditions of such transaction are not less favorable to the Company (or such Subsidiary) as a substantially similar bona fide
transaction with a Person that is not an Affiliate of any Member. 
 (B) The Managers shall meet at such times and at such
locations as from time to time determined by the Managers. The procedures regarding such meetings, and the manner in which a Manager may attend in person, by teleconference or by proxy, shall be determined from time to time by the Managers, provided
that a quorum for any meeting of the Managers shall be presence in person, by teleconference or by proxy by the Managers required to approve the action being considered at such meeting. Quorum shall be all of the Managers. 

(C) Managers may act without a meeting if the action taken is approved in writing by the Managers that constitute the Managers
required to approve such action. The effective date for any such approval shall be the date that written consent is delivered to the Company by the Managers. 

(iii) Reimbursement. Each Manager shall be reimbursed from the Company for all out of pocket fees and expenses incurred
on behalf of the Company’s business promptly after providing receipts or other documentation sufficient under the Code to substantiate such fees and expenses, provided that that central overhead or salaries of directors, officers, managers,
employees (or any Person acting in any similar capacity) of a Manager shall not be expenses of the Company or reimbursable. 

  
 - 21 - 

 (c) Member Meetings or Written Consents.  

(i) The Members shall meet at such times and at such locations as from time to time determined by the Members. The procedures
regarding such meetings, and the manner in which a Member may attend in person, by teleconference or by proxy, shall be determined from time to time by the Members, provided that a quorum for any meeting of the Members shall be presence in person,
by teleconference or by proxy by the Members required to approve the action being considered at such meeting; 
 (ii) Members
may act without a meeting if the action taken is approved in writing by the Members that constitute the Members required to approve such action. The effective date for any such approval shall be the date that written consent is delivered to the
Company, the Superconductor Member and Clearday Member. 
 (d) Limitations on the Authority of the Board.  

Notwithstanding the provisions of Section 8(b) to the contrary, subject to the provisions of Section 8(e), the Company and its
Subsidiaries shall not, and the Board shall not authorize the Company or any of its Subsidiaries to, consummate any of the following transactions (each, a “Significant Transaction”) without the prior affirmative consent
(“Mutual Consent”) of the Superconductor Member and Clearday Member: 
 (i) Sale of Assets or the Company:

 (A) the merger or consolidation (or any similar transaction) of the Company or the Property Owner with any other Person;

 (B) the sale, transfer, encumbrance, assignment, pledge, hypothecation or other disposition of the Property Owner
Interests or any of them, or the sale, transfer, encumbrance, assignment, pledge, hypothecation or other disposition of all or substantially all of the Company’s or the Property Owner’s assets. 

(C) the liquidation or dissolution of the Company or the Property Owner other than in accordance with Section 12; 

(ii) Company Equity: 

(A) approving any Capital Call Notice; 

(B) issuing LLC Interests (or similar interests of the Property Owner) other than as permitted by this Agreement; or 

(C) issuing any other equity interests (including phantom interests) in the Company or the Property Owner or granting any
options, warrants, rights or other equity interests or debt obligations which are or may be converted or exchanged for any such securities or interests; 

  
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 (D) converting or redeeming any LLC Interests or similar interests of the
Property Owner; 
 (E) waiving any of the conditions for a Third Party to be admitted as a Member; 

(iii) Changing the Company’s Business: commencing any business or line of business other than the
holding, managing and selling, pledging or otherwise realizing the economic value of the Property Owner Interests; 
 (iv)
Auditors: retaining or changing the Company’s independent public accounting firm; 
 (v) Investments:
forming any Subsidiary of the Company or the Property Owner or investing in any Person; 
 (vi) Amending the Charter
Documents: amending this Agreement or the Certificate of Formation of the Company or of the Property Owner; 
 (vii)
Asset Acquisitions: acquiring any assets by the Company or any Subsidiary of the Company; 
 (viii) Affiliate
Transactions: directly or indirectly entering into, amending or being a party to, any transaction or arrangement with a Member or any Affiliate of said Member except in the ordinary course of business and on
arm’s-length terms and conditions no less favorable to the Company or such Subsidiary than would be obtained in a comparable arm’s-length transaction with an
unrelated Third Party; 
 (ix) Debt. Incurrence of debt by the Company or the Property Owner, except as permitted by
Section 8(e); and 
 (x) Other Similar Actions: authorizing any transaction similar in nature, substance or
materiality to any of the foregoing provisions unless permitted under Section 8(e) below. 
 (e) Mutual Consent Not Required.
 
 Notwithstanding the provisions of Section 8(d), the Mutual Consent shall not be required and any of the following actions may
be taken with the sole approval of the Clearday Member: 
 (i) The sale or other disposition of the Property Owner Interests
or the assets of Property Owner for a sales price that provides minimum unrestricted, cash net proceeds, that does not subject the holder of the Preferred LLC Interests to contractual indemnity or clawback, that is equal to or greater than the
Preferred Liquidation Amount; provided, such action is proposed to the Board at least 10 days before the proposed action (even if the Superconductor Member does not approve or vote). 

  
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 (ii) The ordinary course conduct of the business of Property Owner as an
owner and developer of the property (the “Property”) located at 8800 Village Drive, San Antonio, Texas. 

(iii) The leasing of space at the Property; 

(iv) The lease or use of the Property by the Clearday Member or any of its Affiliates for their respective businesses; 

(v) The refinancing of any indebtedness of the property owned by Property Owner or the incurrence of purchase money financing
or other financing of the business of Property Owner, whether or not secured by the pledge of the equity interests of Property Owner; provided, (a) the action is proposed in writing to the Board at least 10 days before taking the action
(the “Review Period”); (b) no Affiliate of any member is the lender or receives any compensation or payment with respect to such refinancing or incurrence; (c) the Superconductor Member has received during the Review Period all
such documentation regarding the refinancing or incurrence as it may reasonably request that is reasonably available or in the possession of the Company or its Affiliates, and (d) (i) prior to the date of the filng with the Securities and
Exchange Commission of the Registration Statement on Form S-4 contemplated by Section 5.1(a) of the Merger Agreement (the “S-4 Filing”), the
Superconductor Member has provided its written consent to such refinancing or incurrence, which consent shall not be unreasonably withheld; and (ii) on or after the date of the S-4 Filing, the
Superconductor Member has not, within 10 days after the conclusion of the Review Period, reasonably determined in a written notification delivered to the Company (an “Impairment Determination”), based on its good faith accounting
judgment of Generally Accepted Accounting Principles as consistently applied by it in the preparation of its financial statements (“GAAP”) after discussion with the Clearday Member and as reasonably explained in the notification
containing the Impairment Determination (which explanation shall include, as applicable, reference to appropriate GAAP standards, rules or principles, and supporting documentation, such as, worksheets illustrating the GAAP considerations) that the
proposed refinancing or incurrence (taking into account any other debt or proposed debt of the Company and other factors relevant under GAAP and after giving effect to the transactions related to such refinancing or incurrence) either does or is
reasonably likely to, result in a write-down, impairment, charge or other reduction to the $1.6 million of stockholder’s equity that the Superconductor Member has booked in connection with the transactions contemplated by this Agreement
(the process described in clauses (a) through (d) inclusive, an “Impairment Determination Process”). 

(vi) The incurrence of a loan by the Property Owner or the Company, and a related encumbrance on the assets of the Property
Owner or the Company, by a commercial bank or other institutional lender that does not require any guaranty of obligations by any Preferred Member and in which the net proceeds for any such loan is used solely for the capital improvements of the
building at 8800 Village Drive, San Antonio, Texas; provided, such lender is not an Affilate of the Clearday Member and the aggregate amount of such loan does not exceed $2,500,000; provided, (i) prior to the date

  
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of the S-4 Filing, the Superconductor Member has provided its written consent to such refinancing or incurrence, which consent shall not be unreasonably
withheld; and (ii) on or after the date of the S-4 Filing, no Impairment Determination with respect to such loan has been made after complying with the Impairment Determination Process. 

(vii) The advance of cash to the Company or Property Owner for the payment of any obligations of such Person as a loan under
Section 13; provided, that no interest or fees shall accrue or be payable on account of any such loan and only the amount of the cash advanced shall be repaid, and no such loan shall be repaid unless and until the Superconductor Member
receives or has received the Preferred Liquidation Amount in full. 
 The Clearday Member agrees that in the event that the Merger Agreement is terminated
in accordance with its terms, upon the written request of the Superconductor Member, the Clearday Member will use its commercially reasonable efforts to refinance or finance the Property and/or the interests in Property Owner to make distributions
to the Preferred Member in an amount that is not less than the then Preferred Liquidation Amount. 
  

	 	9.	 [intentionally omitted] 

 

	 	10.	 Accounting Provisions. 

(a) Fiscal and Taxable Year.  

The fiscal and taxable year of the Company shall be the calendar year. 

(b) Books and Accounts. 

(i) Complete and accurate books and accounts shall be kept and maintained for the Company at the Company’s principal place
of business. Such books and accounts shall be kept for fiscal and tax purposes on the accrual basis in accordance of Generally Accepted Accounting Principles. A list of the names and addresses of the Members and their respective membership interest
shall be maintained as part of the books and records for the Company. Each Member or such Member’s duly authorized representative, at such Member’s own expense and upon delivering advance written notice to the Company, shall at all
reasonable time have access to, and may inspect and make copies of, such books and accounts and any other records of the Company. 

(ii) All funds received by the Company shall be deposited in the name of the Company in the bank account or accounts of the
Company, and withdrawals therefrom shall be made upon the signature of the individual or individuals designated from time to time by the Board. In the sole and absolute discretion of the Board, all deposits and other funds not needed in the
operation of the Company’s business may be deposited in interest-bearing bank accounts, in money market funds, or invested in treasury bills, certificates of deposit, U.S. government security-backed repurchase agreements or similar money market
instruments, or funds investing in any of the foregoing or similar types of investments. 
 (c) Financial Reports.  

The Board shall endeavor to cause to be prepared after the end of each taxable year of the Company and file, on or before their respective due
dates (as the same may be extended), all federal and state income tax returns of the Company for such taxable year and shall promptly take all action as may be necessary to permit the Company’s regular accountants to prepare and

  
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timely file such returns. A copy of Schedule K 1 to the Company’s income tax return shall be sent to each Member within thirty (30) days after the Board has all information necessary to
properly prepare the Schedule K 1 reflecting the Member’s distributive share of income, loss, credit and deductions for such taxable year. The Board shall cause to be sent to each Member (a) within forty-five (45) days after the end
of each calendar quarter during the term of this Agreement, a balance sheet and profit and loss statement for the calendar quarter just ended (which financial statements need not be audited) and (b) within ninety (90) days after the end of
each fiscal year a balance sheet, cash flow statement and profit and loss statement for the fiscal year just ended, compiled by the Approved Accountant, provided that if such compilation is not completed within such ninety (90) day period, then
the Board shall cause to be delivered the regularly prepared unaudited fiscal year a balance sheet, cash flow statement and profit and loss statement for the fiscal year just ended and a copy of such complied financial statements within five
(5) business days after receipt thereof. Such financial statements shall be prepared on the basis that the books and records are maintained in accordance with Section 10(b)(i). In addition, within thirty (30) days after the filing
thereof, the Board shall cause the Company to send to each Member (a) a copy of each federal and, if applicable, state and local tax return of the Company for the fiscal year just ended; and (b) such other items as the Board may deem
reasonably material to the operations of the Company. 
 (d) Tax Elections.  

Any elections required or permitted to be made by the Company under the Internal Revenue Code of 1986, as amended (the
“Code”), shall be made by the Board in such manner as the Board shall determine. 
 (e) Expenses.  

To the extent practicable, all expenses of the Company shall be billed directly to, and be paid by, the Company. The Company shall not be
obligated to pay or reimburse the Members for their expenses with respect to the negotiation, execution and delivery of this Agreement. 
  

	 	11.	 Distributions and Allocations. 

(a) Distributions.  

The net cash flow, i.e., cash received in excess of expenses and reasonable reserves (including all amounts paid or payable with respect to
Capital Default Loans), of the Company shall be distributed to the Members at such times as from time to time determined by the Board (but in no event, less than quarterly) to the Members as provided in this Section 11(a): 

(i) All distributions of Capital Event Proceeds shall be distributed as follows: 

  
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 (A) First to the holders of the Preferred LLC Interests in an amount that is
equal to the Net Unreturned Invested Capital of the Preferred LLC Interests (which distribution amounts are referred to as the “Preferred Liquidation Amount”); 

(B) Then, to the holders of the Common LLC Interests. 

(ii) All distributions of proceeds that are not Capital Event Proceeds, shall be distributed to the Members in accordance with
their respective Percentage Interersts. 
 (iii) After the distribution of the Preferred Liquidation Amount, the Preferred
LLC Interests shall be redeemed. 
 (b) Withholding Taxes.     

If the Company is required to withhold any portion of any distribution or allocation to a Member by applicable federal, state, local or
foreign tax laws, the Company shall withhold such amounts and make such payments to such taxing authorities as are necessary to ensure compliance with such tax laws. If the Company is required to pay any tax to a federal, state, local or foreign
government on the account of a Member’s nationality, origin, tax status or similar factors, or as a result of the action or inaction of a Member, the Company shall pay such tax as required or necessary to ensure its compliance with applicable
tax laws. Any funds withheld or paid by reason of this Section 11(b) shall nonetheless be deemed distributed or allocated (as the case may be) to the Member in question for all purposes under this Agreement. If the Company makes any payment to
a taxing authority in respect of a Member hereunder that is not withheld from actual distributions to the Member, then the Company may, at its option: (i) require the Member to reimburse the Company for such withholding (along with interest at
the Capital Loan Rate from the date of such withholding until reimbursed or subsequently withheld from distributions); and/or (ii) reduce any subsequent distributions to such Member by the amount of such unrecovered withholding (along with
interest at the Capital Loan Rate from the date of such withholding until reimbursed or subsequently withheld from distributions); provided, however, that if the Company elects (ii), such reduction must be taken from the first distribution
subsequent to the payment. The obligation of a Member to reimburse the Company for taxes that were required to be withheld shall continue after such Member sells or otherwise conveys its LLC Interest and after the withdrawal by such Member. Each
Member agrees to furnish the Company with any representations and forms as shall reasonably be requested by the Board to assist it in determining the extent of, and in fulfilling, any withholding obligations of the Company. 

(c) Allocations of Profits and Losses.  

Subject to the provisions of Section 11(d), and after giving effect to the allocations under such Section, Profits and Losses of the
Company shall be allocated as follows: 
 Except as otherwise provided in this Agreement, and after giving effect to Section 11(d),
Profits or Losses for any Fiscal Year will be allocated among the Members such that the Capital Account of each Member, immediately after giving effect to such allocations, will equal (proportionately), as nearly as possible, (A) the amount of
the Distributions that would be made to such Member during such Fiscal Year if (i) the Company were dissolved and terminated, (ii) its affairs were wound up and each asset were sold for its Gross Asset Value (without regard

  
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to clause (d) of the definition of Gross Asset Value, and except that any asset which was the subject of a disposition in such Fiscal Year will be treated as if it were sold for cash equal
to the sum of the amount received by the Company in any such disposition and the Fair Market Value of any other property received by the Company in such disposition), (iii) all liabilities of the Company were satisfied and (iv) the net assets
of the Company were distributed to the Members in accordance with Section 12 and applicable law, minus (B) such Member’s share of partnership minimum gain and partner nonrecourse debt minimum gain determined pursuant to Regulations
§§ 1.704-2(g)(1) and 1.704-2(i)(5), computed immediately prior to the hypothetical sale of assets. For avoidance of doubt, it is the parties’ intent to
have all income, gain, deduction and loss allocated to the Clearday Member. The Board will make such other assumptions as he deems necessary or appropriate in his good faith and reasonable judgment in order to effectuate the intended beneficial
entitlements of the Members. It is the intent of the Members that the foregoing allocation will meet the requirements for “substantial economic effect” of Section 704 of the Code and the Regulations promulgated thereunder. The
allocations set forth in this Article 6 shall be interpreted consistently with the foregoing intent and the allocations shall be amended, if necessary, in order to accomplish this purpose. 

(d) Special Allocations.  

(i) Loss Limitation. Losses shall not be allocated to a Member to the extent an allocation of such loss
would cause or increase an Adjusted Capital Account Deficit of such Member beyond the amount that such Member is obligated to restore as of the end of any taxable year, taking into account the amounts and adjustments set forth in Treasury Regulation
Section 1.704-1(b)(2)(ii)(d)(4)-(6). Any Loss not allocated to a Member under this Section 11(d)(i) shall be reallocated to the other Member, provided that such reallocation does not cause or
increase the Adjusted Capital Account Deficit of any other Member. 
 (ii) Member Minimum Gain
Chargeback. Notwithstanding any other provision of this Section 11, if during any taxable year there is a net decrease in Member Nonrecourse Debt Minimum Gain, any Member with a share of that Member Nonrecourse Debt Minimum Gain
(determined in accordance with Treasury Regulations Section 1.704-2(i)(5)) as of the beginning of such taxable year must be allocated items of Company income and gain for the taxable year (and, if
necessary, for succeeding taxable years) equal to that Member’s share of the net decrease in the Member Nonrecourse Debt Minimum Gain (determined in accordance with Treasury Regulations
Section 1.704-2(i)(4)); provided, however, that this Section 11(d)(ii) shall not apply to the extent the circumstances described in the third and fifth sentences of Treasury Regulations Section 1.704-2(i)(4) exist. The items of Company income and gain to be allocated pursuant to this Section 11(d)(ii) shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(4) and (j). This Section 11(d)(ii) is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement in Treasury Regulations
Section 1.704-2(i) and shall be interpreted consistently therewith. 

  
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 (iii) Minimum Gain Chargeback. Notwithstanding any
other provision of this Section 11(d), if there is a net decrease in Minimum Gain for any taxable year, each Member shall, in the manner provided in Treasury Regulations Section 1.704-2(f), be
allocated items of Company income and gain for such year (and, if necessary, for subsequent taxable years) in an amount equal to such Member’s share of the net decrease in Minimum Gain, in accordance with Treasury Regulations Sections 1.704-2(f),(g) and (j); provided, however, that this Section 11(d)(iii) shall not apply to the extent the circumstances described in Treasury Regulations Sections
1.704-2(f)(2), 1.704-2(f)(3), 1.704-2(f)(4), or 1.704-2(f)(5) exist. The items of Company
income and gain to be allocated pursuant to this Section 11(d)(iii) shall be determined in accordance with Treasury Regulations Sections 1.704-2(f)(6) and (j). This Section 11(d)(iii) is intended to
comply with the minimum gain chargeback requirement in Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently therewith. 

(iv) Qualified Income Offset. If any Member unexpectedly receives any adjustments, allocations, or
distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that create or increase an Adjusted Capital Account Deficit for such Member, items of Company income and
gain (consisting of a pro rata portion of each item of Company income, including gross income, and gain for such year) shall be specially allocated to such Member in an amount and manner sufficient to eliminate, to the extent required by Treasury
Regulations Section 1.704-1(b)(2)(ii)(d), the Adjusted Capital Account Deficit for such Member as quickly as possible; provided, however, that an allocation pursuant to this Section 11(d)(iv) shall
be made if and only to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Section 11(d)(iv) have been tentatively made as if this Section 11 were not in this
Agreement. 
 (v) Nonrecourse Deductions. Nonrecourse Deductions for any taxable year or other period
shall be specially allocated among the Members in accordance with their Percentage Interests. 
 (vi) Member
Nonrecourse Deductions. Any Member Nonrecourse Deductions for any taxable year or other period shall be specially allocated in accordance with Treasury Regulations Section 1.704-2(i)(1).

 (vii) Section 754 Adjustment. To the extent that any adjustment to the adjusted tax basis of any
Company asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Members in a
manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Treasury Regulations. The Board shall cause the Company to make the election permitted under Code Section 754. 

  
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 (e) Other Allocation Rules. 

(i) Accrual of Profits and Losses. For purposes of determining Profits, Losses or any other items allocable to any
period, Profits, Losses and any such other items shall be determined on a daily, monthly or other basis, using any method that is permissible under Code Section 706. If an LLC Interest is sold or otherwise conveyed in accordance with this
Agreement, then except as otherwise provided by Code Section 706, the Profits and Losses of the Company and any other items of the Company shall be allocated between the periods before and after such sale or conveyance by the closing of the
books method. As of the date of such sale or conveyance, the transferee shall succeed to the Capital Account of the transferor Member with respect to the Percentage Interest so sold or conveyed. This Section 11(e)(i) shall apply for purposes of
computing a Member’s Capital Account and for federal income tax purposes. 
 (ii) Excess Nonrecourse
Liability. Each “excess nonrecourse liability” of the Company within the meaning of Treasury Regulation Section 1.752-3(a)(3) shall be allocated among the Members in accordance
with the manner in which the Nonrecourse Deductions attributable to such liability will be allocated. 
 (iii)
514(c)(9)(E) Allocation. Notwithstanding anything to the contrary contained herein, if a “qualified organization” within the meaning of Code Section 514(c)(9)(c) owns a direct or indirect interest in the Company
and a Member so requests, allocations under this Agreement shall be made only to the extent that, and shall be adjusted to the extent necessary to ensure that the Company’s allocations satisfy the requirements of Code Section 514(c)(9)(E),
the Treasury Regulations promulgated thereunder and any administrative guidelines or pronouncements thereunder, including so that all allocations have “substantial economic effect” for the purposes of Code Section 514(c)(9)(E)(i)(II).

 (f) Tax Allocations.  

Unless otherwise agreed by the Members, the following elections will be made by the Company: 

(i) In accordance with Code Section 704(c), the traditional method as set forth in Treasury Regulations Section 1.704-3(b), shall, solely for tax purposes, direct the allocation of income, gain, loss, and deduction with respect to any Company property among the Members so as to take account of any variation
between the adjusted basis of such property to the Company for federal income tax purposes and its initial Gross Asset Value. 

(ii) Except as provided herein, for federal income tax purposes, under the Code and Treasury Regulations, each Company item of
income, gain, loss and deduction shall be allocated among the Members in the same manner as its correlative item of “book” income, gain, loss or deduction is allocated pursuant to this Section 11. Any elections or other decisions
relating to such allocations shall be made with the unanimous consent of the Members (or, to the extent provided herein, the Board) in any manner that reasonably reflects the purpose and intention of this Agreement. 

  
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 (iii) The parties intend that the foregoing tax allocation provisions of
this Section 11 shall produce final Capital Account balances of the Members that will match the liquidating distributions (after unpaid loans and interest thereon, including those owed to Members, have been paid) required to be made to the
Members in accordance with Section 12. To the extent that the allocation provisions of this Section 11 would fail to produce such final Capital Account balances the Managing Member shall specifically allocate items of gross income and
deduction of the Company for the year of liquidation and, if necessary, prior open years in such amounts as necessary to cause the Members final Capital Account balance to equal the amounts of the distributions made or to be made pursuant to
Section 12. 
 (g) Tax Matters.  

(i) The Members intend that the Company be treated as a partnership for Federal income tax purposes. 

(ii) The fiscal and taxable year of the Company shall be the calendar year, unless the Board in its discretion, designates a
different year. The Board shall provide a notice to each Member of any such designation. 
 (iii) The Manager that has been
appointed by the Clearday Member is designated as the “partnership representative” within the meaning of Section 6223(a) of the Code (the “Partnership Representative”) and shall be authorized to take any actions
necessary under Treasury Regulations or other guidance to cause such person to be designated as such. The Company and each Member agree that they shall be bound by the actions taken by the Partnership Representative, as described in
Section 6223(b) of the Code. The Partnership Representative shall have the authority to make elections set forth in the Revised Partnership Audit Rules, including but not limited to the election set forth in Section 6226(a) of the Code and
each of the Members is required under this Agreement to furnish the Company and the Partnership Representative with any information necessary, to give effect to such election; and (iv) any imputed underpayment imposed on the Company, as
applicable, pursuant to Section 6232 of the Code (and any related interest, penalties or other additions to tax) that the Company reasonably determines is attributable to one or more Members shall be promptly paid by such Member to the Company
(pro rata in proportion to their respective shares of such underpayment) within fifteen (15) days following the Company’s request for payment (and any failure to pay such amount shall result in a subsequent reduction in distributions
otherwise payable to such Member). For the purposes of this Agreement, the term “Revised Partnership Audit Rules” shall mean the provisions regarding partnership audit procedures under Subchapter C of Subtitle A, Chapter 63 of the
Code, as amended by the Bipartisan Budget Act of 2015 (together with any subsequent amendments thereto, treasury regulations promulgated thereunder, published administrative interpretations thereof, any guidance issued thereunder and any successor
provisions) or any similar procedures established by a state, local, or non-U.S. taxing authority. 

  
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	 	12.	 Liquidation and Termination of the Company. 

(a) Mandatory Liquidation and Termination.  

Upon the earlier to occur of: 

(i) a merger between the Company and any other Person in which the Company is not the surviving entity; 

(ii) the sale of all or substantially all of the assets of the Company or Property Owner, in each case, in any one transaction
or series of related transactions; 
 (iii) Mutual Consent to dissolve the Company; or 

(iv) any act requiring the dissolution of the Company under the Act, 

the Company shall be terminated and liquidated in accordance with this Section 12 and the Act. 

(b) General.  

Upon the termination of the Company, the Company shall be liquidated in accordance with this Section 12 and the Act. The liquidation
shall be conducted and supervised by the Board, or by an agent of the Company designated and approved by Mutual Consent (the Board or such agent being referred to in this Agreement as the “Liquidating Agent”). The Liquidating Agent
shall have all of the rights and powers with respect to the assets and liabilities of the Company in connection with the liquidation and termination of the Company that the Members would have with respect to the assets and liabilities of the Company
during the term of this Agreement if acting by Mutual Consent. The Liquidating Agent shall have the right from time to time, by revocable powers of attorney, to delegate to one or more persons any or all of such rights and powers and such authority
and power to execute and deliver documents, and, in connection therewith, to fix the reasonable compensation of each such person, which compensation shall be charged as an expense of liquidation. The Liquidating Agent is also expressly authorized to
sell the Company’s assets and/or to distribute the Company’s property to the Members or other third parties subject to liens and the terms and provisions of this Agreement. 

(c) Statements on Termination.  

Each Member shall be furnished with a statement prepared by the Company’s regular accountants setting forth the assets and liabilities of
the Company as of the date of complete liquidation, and each Member’s Percentage Interest as of such date. Upon compliance with the distribution plan set forth in this Agreement, the Members shall cease to be such, and the Liquidating Agent
shall execute, acknowledge and cause to be filed where appropriate under law a Certificate of Dissolution of the Company. 
 (d) Priority
on Liquidation.  
 The Liquidating Agent shall, to the extent feasible, liquidate and sell the tangible assets and the
intangible assets of the Company as promptly as shall be practicable. To the extent the proceeds are sufficient therefor, in the Liquidating Agent’s opinion, the proceeds of such liquidation shall be applied and distributed in the following
order of priority (the “Liquidation Distribution”): 

  
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 (i) To pay the costs and expenses of the liquidation and termination; 

(ii) To pay the matured or fixed debts and liabilities of the Company; 

(iii) To establish any reasonable reserve that the Liquidating Agent may deem necessary for any contingent, unmatured or
unforeseen liability of the Company; 
 (iv) To the Members in accordance with the provisions of Section 11(a)(i). 

(e) Distribution of Nonliquid Assets.  

If the Liquidating Agent shall reasonably determine that it is not practicable to liquidate all of the assets of the Company, then the
Liquidating Agent shall cause the fair market value of the assets not so liquidated to be determined by appraisal by an independent appraiser. Such assets, as so appraised, shall be retained or distributed by the Liquidating Agent as follows: 

(i) The Liquidating Agent shall retain assets having a fair market value equal to the amount, if any, by which the net proceeds
of liquidated assets are insufficient to satisfy the debts and liabilities of the Company, to pay the costs and expenses of the dissolution and liquidation, and to establish reserves, all subject to the provisions of this Agreement. The foregoing
shall not be construed, however, to prohibit the Liquidating Agent from distributing, pursuant to this Agreement, property subject to Liens at the value of the Company’s equity therein. 

(ii) The remaining assets (including, without limitation, receivables, if any) shall be distributed to the Members by way of
undivided interests therein in such proportions as shall be equal to the respective amounts to which each Member is entitled pursuant to this Agreement. If, in the judgment of the Liquidating Agent, it shall not be practicable to distribute to each
Member an undivided aliquot share of each asset, the Liquidating Agent may allocate and distribute specific assets to one or more Members as tenants in-common as the Liquidating Agent shall determine to be
fair and equitable, taking into consideration, inter alia, the basis for tax purposes of each asset distributed. Notwithstanding any provision contained in this Agreement to the contrary, if the Liquidating Agent shall for any reason
be unable to liquidate and/or sell the Company’s intangible assets in the course of any liquidation, then the parties hereto hereby instruct the Liquidating Agent to, and the Liquidating Agent shall, subject to the terms and provisions of this
Section 12, distribute such intangible assets to the Members as co-owners with an undivided interest in the whole and unless otherwise agreed to by the parties hereto to the contrary, each Member to whom
an intangible asset shall have been distributed shall have the full right to exploit the intellectual property rights contained therein without being obligated to account or pay to the other Member or Members for any royalties or other revenues
received therefrom. 
 (iii) Nothing contained in this Agreement is intended to cause any
in-kind distributions to be treated as sales for value. 

  
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 (f) Orderly Liquidation.  

A reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the discharge of liabilities to creditors so
as to minimize the losses normally attendant upon a liquidation. 
  

	 	13.	 Loans and Advances.  

If any Member or any of their respective Affiliates shall loan or advance any funds to the Company, such loan or advance shall not be deemed a
Capital Contribution and shall not in any respect increase such Member’s Percentage Interest except as otherwise provided upon the exercise of a Conversion Right under Section 4(d)(ii). Such loan or advance shall constitute an obligation
and liability of the Company. Unless otherwise agreed in writing between the Members, the Board and the Company, the Members, the managers and any of their respective Affiliates shall not have any personal obligation or liability for the repayment
of such loans and the same shall be collectible only from Company assets. Any reference in this Agreement to the payment of debts, obligations or liabilities of the Company shall be deemed to include any such loans from a Member and any of their
Affiliates, to the extent that law and agreements to which the Company is a party or is subject permit, and to the extent that the terms of such loans may require, such loans from a Member or any of their Affiliates, shall be paid ahead of other
general debts, obligations and liabilities of the Company. 
  

	 	14.	 Exculpation and Indemnification of Managers, Members and Affiliates. 

(a) Exculpation.  

Notwithstanding any other provisions of this Agreement, whether express or implied, or obligation or duty at law or in equity, no Member or
manager, nor any officer or employee of the Company or of any Member or manager shall be liable to the Company or any other Person for any act or omission taken or omitted by any such Person or any Affiliate of any such Person which is within the
scope of authority granted to any such Person or any Affiliate of any such Person by this Agreement, provided that such act or omission does not constitute a breach of any covenant or agreement of this Agreement (in which case, the Member shall be
liable), fraud, willful misconduct or gross negligence. In furtherance of the foregoing, it is acknowledged and agreed that no Member nor any Manager shall have a fiduciary duty to the Company or any Member to the fullest extent permitted under Section 18-1101(c) of the Act. 
 (b) Indemnification. 

(i) The Company shall indemnify any Person who was or is a party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action initiated by or in the right of the Company in which action the Company ultimately prevails) by reason of the fact that such
party is or was a Member, manager, officer, employee, or agent of the Company, or is or was serving at the request of the Company as a manager, director, officer, employee, trustee or agent of another limited liability company or corporation,
partnership, joint venture, trust or other enterprise, from and against 

  
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expenses (including attorneys’ and accountants’ fees and disbursements), judgments, fines and amounts paid in settlement, actually and reasonably incurred (collectively,
“Indemnification Losses”) by such party in connection with such action, suit or proceeding, provided that no Person shall be entitled to indemnification under this Agreement to the extent that the amount of any
Indemnification Losses arises from fraud, willful misconduct or gross negligence; provided, further, that any Indemnification Losses suffered by the Clearday Member shall be subordinated in right of payment to the Preferred Liquidation Amount to the
extent that such obligations do not arise from the ordinary course of business of the assets of the Company, including the renovation or capital improvement of the property owned by the Company or are owed to an Affiliate of the Clearday Member.

 (ii) The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that the acts or omissions by the Person seeking indemnification actions constitute fraud, willful misconduct or gross negligence. 

(iii) Any indemnification under this Agreement (unless ordered by a court) shall be made by the Company only as authorized in
the specific case with the consent of the Members (which consent shall not be unreasonably withheld, delayed or conditioned) that indemnification of the Member, manager, officer, employee or agent is proper in the circumstances because such party
has met the applicable standard of conduct set forth in this Agreement. 
 (iv) Expenses (including actual attorneys’
and accountants fees and disbursements including any retainer fees or deposits) incurred by any Member, manager, officer, employee or agent in defending any civil, criminal, administrative or investigative action, suit or proceeding shall, with the
prior consent of the Members (which consent shall not be unreasonably withheld, delayed or conditioned), be paid by the Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of
such Person to repay such amount if it shall ultimately be determined that such party is not entitled to be indemnified by the Company as authorized in this Section 14(b) ; provided, further, that any such expenses incurred by the Clearday
Member shall be subordinated in right of payment to the Preferred Liquidation Amount to the extent that such obligations do not arise from the ordinary course of business of the assets of the Company, including the renovation or capital improvement
of the property owned by the Company or are owed to an Affiliate of the Clearday Member.. 
 (v) The indemnification and
advancement of expenses provided by, or granted pursuant to, this Section 14(b) shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any law, agreement, or
otherwise, both as to action in an official capacity and as to action in another capacity while holding such office. 

  
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 (vi) The Company may purchase and maintain insurance on behalf of any person
who is or was a Member, manager, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee, trustee or agent of another limited liability company corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against such party and incurred by such party in any such capacity, or arising out of such party’s status as such. 

(vii) The indemnification and advancement of expenses provided by, or granted pursuant to, this Section 14(b) shall,
unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a Member, manager, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators or successors or assigns of
each such Person. 
  

	 	15.	 Confidentiality; Non-Exclusivity. 

(a) Confidentiality.  

Each Member shall retain in strict confidence, and shall not use for any purpose whatsoever, or divulge, disseminate or disclose to any Third
Party (other than in furtherance of the business purposes of the Company or as may be required by law) any proprietary or confidential information relating to the business of the Company, including, without limitation, information regarding the
conduct of the memory care business conducted by Property Owner, financial information, real property space availability, lease terms, development plans, distribution or franchising methods and channels, pricing information, business methods,
management information systems and software, customer lists, supplier lists, leads, solicitations and contacts, know-how, show-how, inventions, improvements,
specifications, trade secrets, agreements, research and development, business plans and marketing plans of Property Owner or the Company, whether or not any of the foregoing are copyrightable or patentable provided, that (i) a Member may in
connection with any Approved Transfer provide financial and other information with respect to the Company; (ii) that each Member may divulge, disseminate or disclose any such proprietary and confidential information to its agents, consultants,
professional advisors and co-investors for the purposes of managing its investment in the Company; and (iii) each Member may divulge, disseminate or disclose any such proprietary and confidential
information to any of its Affiliates or otherwise to the extent necessary to comply with applicable legal requirements. 
 (b) Press
Releases.  
 Except as required by law, no press release shall be issued about the Company or its Subsidiaries or any Member or
any of their respective Affiliates without the prior Mutual Consent. The provisions of this Section 15(b) shall survive the termination of the term of this Agreement for a period of three (3) years. 

(c) Non-Exclusivity.  

Each Member and any of its Affiliates may engage in, acquire and possess, without accountability to the Company or the other Members, any
calling, business, profession, investment or interest independently or with others, including, but not limited to, the acquisition, ownership, financing, leasing, operation, management or development of any interests in any business or asset even if
such act is directly competitive with the business of, or any of the assets owned by, the Company or any Subsidiary of the Company. 

  
 - 36 - 

 (d) Financial Reporting. 

The Company shall cooperate with the Superconductor Member in providing such financial information as it may reasonably require to prepare its
own consolidated financial statements for public reporting. 
 (e) Inspection. 

Each Member shall have the absolute right, during business hours, to inspect each and every asset, document, liability, record or other
information of the Company and its subsidiaries. Each Members shall have the right to promptly receive such financial information and reports as it may reasonably request, including annual, quarterly and monthly income statements, balance sheets and
cash flow statements on a consolidated and subsidiary basis (according to GAAP is reasonably practicable), all certified as to accuracy by the chief financial officer of the Company and provided not later then 90 days after each annual period, 45
days after each quarterly period and promptly after each monthly period. 
  

	 	16.	 Members’ Representations and Warranties.  

Each of the Members on behalf of itself, severally, represents and warrants as of the date hereof to the other Members that: 

(i) it is duly formed and has all necessary power and authority to execute and deliver, and perform its obligations under, this
Agreement as a Member; this Agreement has been duly authorized, executed and delivered by such Member and the constituent members of such Member; this Agreement constitutes the valid and legal binding obligation of each Member and is enforceable
against each Member in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, moratorium and other similar laws of general applicability affecting creditors rights and general equity principles; and no consent or
approval from any governmental authority or any third party is required in connection with the execution and delivery of this Agreement; 

(ii) neither the execution of this Agreement by a Member nor the performance by each Member of its obligations hereunder will

 (A) conflict with or result in a breach of, the terms, conditions or provisions of, or constitute a default by any Member
under, any agreement by which a Member is bound or 
 (B) violate any restriction, requirement, covenant or condition
contained in any agreement to which a Member (to the best of such Member’s knowledge) is bound; and 
 (iii) it has not
relied on any representations, warranties or promises (written or oral) with respect to the Company or the Property except as expressly set forth herein. 

  
 - 37 - 

	 	17.	 Amendment and Modification.  

This Agreement may not be amended, modified or supplemented except in a writing, duly authorized, executed and delivered by each Member. 

 

	 	18.	 Assignment.  

This Agreement and all of the provisions of this Agreement shall be binding upon and shall inure to the benefit of the Members and their
respective heirs, assigns, executors, administrators or successors, but neither this Agreement nor any of the rights, benefits, interests or obligations under this Agreement shall be assigned or delegated by any of the Members without the prior
written consent of the other Member, in each case, except as otherwise expressly permitted under this Agreement. 
  

	 	19.	 Further Assurances.  

Each party hereto by the execution and delivery of this Agreement hereby consents to the formation of the Company and the transfer and
assignment of the Property Owner Interests. Each Member hereby agrees that he or it shall promptly do and perform or cause to be done and performed all such further acts and things and shall promptly execute and deliver all such other agreements,
certificates, instruments and documents as any other party hereto may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated by this Agreement. 

 

	 	20.	 Governing Law.  

This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Delaware governing agreements made
wholly within the State of Delaware. 
  

	 	21.	 Notices.  

(a) Initial Addresses.  

All notices (including any consent required of any Member and the Foreclosure Notice) given or permitted to be provided pursuant to this
Agreement shall be in writing and shall be made by hand delivery, telecopier, or overnight air courier guaranteeing next business day delivery: 

(i) if to the Company, 

to each of 

Clearday Member and 

the Superconductor Member 

as provided below 

  
 - 38 - 

 (ii) if to Clearday Member, to such Person 

c/o Clearday, Inc. 

8800 Village Drive, 2nd Floor 

San Antonio, Texas 78217 

Attention: James Walesa 

Tel: (210-451-0939 

(iii) if to the Superconductor Member, to such Person 

c/o Superconductor Technologies Inc. 

15511 W State Hwy 71, Suite 110-105 

Austin, TX 78738 

Attention: Jeffrey A. Quiram 

Tel: (512) 650-7775 

with a copy to: 

Proskauer Rose LLP 

2029 Century Park East, 

Suite 2400 

Los Angeles, CA 90067-3010 

Attention: Ben D. Orlanski, Esq. 

Tel.: (310) 557-2900 

(b) Notices to Other Members.  

If to any other Member, the address designated by such other Member to the Company in writing, each such designation to be effective only upon
receipt and only to the extent provided in the modification to Schedule I. 
 (c) Change of Address.  

Any party may change the address that notices should be delivered to it by delivering a notice with the corrected information to the Company
and each other Member, such corrected information to be effective only upon delivery of such notice. 
 (d) Deemed Delivery. 

 Except as otherwise expressly provided in this Agreement, each such notice shall be deemed given, delivered and received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if telecopied; and the next business day after timely delivery to the courier, if sent by overnight air courier guaranteeing next business day delivery. 

 

	 	22.	 Consent to Jurisdiction.  

All actions and proceedings arising out of, or relating to, this Agreement shall be heard and determined exclusively in any state or federal
court sitting in New York County, New York. The undersigned, by execution and delivery of this Agreement, expressly and irrevocably: 

  
 - 39 - 

 
(i) consent and submit to the exclusive personal jurisdiction of any of such courts in any such action or proceeding; (ii) consent to the service of any complaint, summons, notice or other
process relating to any such action or proceeding by delivery thereof to such party or the above specified attorney by hand delivered or addressed as set forth in Section 21; and (iii) waive any claim or defense in any such action or
proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis. 
  

	 	23.	 Waiver of Jury Trial.  

EACH MEMBER, THE COMPANY AND THE MANAGER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY
AND VOLUNTARILY BY EACH MEMBER, THE COMPANY AND THE MANAGER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EITHER PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF
THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER 
  

	 	24.	 Entire Agreement; Non-Waiver.  

This Agreement supersedes and terminates all prior agreements between any of the parties hereto with respect to the subject matter contained in
this Agreement, and this Agreement embodies the entire understanding between the parties relating to such subject matter, and any and all prior correspondence, conversations and memoranda are merged in this Agreement and shall be without effect
hereon. No promises, covenants or representations of any kind, other than those expressly stated in this Agreement, have been made to induce any party to enter into this Agreement. No delay on the part of any party in exercising any right under this
Agreement shall operate as a waiver thereof, nor shall any waiver, express or implied, by any party of any right under this Agreement or of any failure to perform or breach of this Agreement by any other party constitute or be deemed a waiver of any
other right under this Agreement or of any other failure to perform or breach of this Agreement by the same or any other Member, whether of a similar or dissimilar nature thereof. 

 

	 	25.	 Specific Performance and Injunctive Relief.  

The parties recognize and acknowledge that their membership interests are closely held and that, accordingly, in the event of a breach or
default by one or more of the parties hereto of the terms and conditions of this Agreement, the damages to the remaining parties to this Agreement, or any one or more of them, may be impossible to ascertain and such parties will not have an adequate
remedy at law. In the event of any such breach or default in the performance of the terms and provisions of this Agreement, any party or parties thereof aggrieved thereby shall be entitled to institute and prosecute proceedings in any court of
competent jurisdiction, either at law or in equity, to enforce the specific performance of the terms and conditions of this Agreement, to 

  
 - 40 - 

 
enjoin further violations of the provisions of this Agreement and/or to obtain damages. Except as otherwise expressly provided in this Agreement, such remedies shall however be cumulative and not
exclusive and shall be in addition to any other remedies which any party may have under this Agreement or at law. Each Member hereby waives any requirement for security or the posting of any bond or other surety and proof of damages in connection
with any temporary or permanent award of injunctive, mandatory or other equitable relief and further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 

 

	 	26.	 Attorneys’ Fees.  

In any action or proceeding brought to enforce any provision of this Agreement, or where any provision of this Agreement is validly asserted as
a defense, the successful party shall be entitled to recover its actual attorneys’ fees and all disbursements in addition to any other available remedy. 
  

	 	27.	 Severability.  

If any provision of this Agreement or the application thereof to any party or circumstance shall be held invalid or unenforceable to any
extent, the remainder of this Agreement and the application of such provisions to the other parties or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by applicable law. 

 

	 	28.	 Cash Payments by and to Members.  

All payments of cash by any Member to any other Member provided in this Agreement shall be by wire transfer of immediately available funds
pursuant to the wire transfer instructions provided by the Member receiving such payment to the paying Member or, if such wire transfer instructions are not received at least two (2) business days prior to the date of such payment, then such
payment shall be by check payable to the Member receiving such payment delivered to such Member on the applicable payment date at the offices of the Company. 
  

	 	29.	 Miscellaneous. 

(i) Notwithstanding any provision of this Agreement to the contrary, a Transferee of an Approved Transfer shall take the LLC
Interests in such sale or transaction subject to the terms and provisions of this Agreement. 
 (ii) Section headings are for
convenience of reference only and shall not be used to construe the meaning of any provision of this Agreement. 
 (iii) This
Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which shall together constitute one agreement. 

  
 - 41 - 

 (iv) Any word or term used in this Agreement in any form shall be masculine,
feminine, neuter, singular or plural, as proper reading requires. The words “herein”, “hereof”, “hereby” or “hereto” shall refer to this Agreement unless otherwise expressly provided. Any reference in this
Agreement to a Section or any exhibit or schedule shall be a reference to a Section of, and an exhibit or schedule to, this Agreement unless the context otherwise requires. Any reference in this Agreement to a “business day” shall mean a
day in which the New York branch of the Federal Reserve Bank is open for business during its normal hours of operation. 
 [The next page
is the Signature Page] 

  
 - 42 - 

 IN WITNESS WHEREOF, this Agreement has been signed by each of the parties hereto as of the
date first written above. 
  

			
	The Company
	
	NAPLES JV, LLC
		
	By:	 	/s/ James Walesa
		 	Name: James Walesa
		 	Title: Manager
	
	The Members
	
	SUPERCONDUCTOR TECHNOLOGIES INC.
		
	By:	 	/s/ Jeffrey A. Quiram
		 	Name: Jeffrey A. Quiram
		 	Title: Chief Executive Officer
	
	CLEARDAY NAPLES, LLC
		
	By:	 	/s/ James Walesa
		 	Name: James Walesa
		 	Title: Manager

  
 - 43 - 

 SCHEDULE I 

to the Amended and Restated Limited Liability Company Agreement 

of 
 Naples JV, LLC 

Date Last Revised: July 6, 2020 
  

					
	Name of Member	  	Percentage Interest	 
	 Superconductor Technologies Inc.
	  	 	50.00	% 
	 Clearday Naples, LLC
	  	 	50.00	% 
	 TOTAL
	  	 	100.00	% 
		  	  
	  
	 

 EXHIBIT A 

Form of Certificate Representing LLC Interests 

(attached hereto) 

 
LLC INTEREST CERTIFICATE 

Naples JV, LLC 
 (A
DELAWARE LIMITED LIABILITY COMPANY) 
 THIS CERTIFIES THAT 

 

                       
                                      

is the owner of [Common] [Preferred] limited liability company interests in the above named limited liability company that as of the date
of this certificate represent 
 ___________ % of the aggregate limited liability company interests in said company and 100% of such
class of limited liability company interests, transferable only on the books of said company by the holder hereof in person or by duly authorized attorney upon surrender of this Certificate properly endorsed. 

IN WITNESS WHEREOF, the said Company has caused the Certificate to be signed by a duly authorized manager of the Company as of
this _____ day of __________, ____. 
  

							
	Naples JV, LLC	 	
			
	By:	 	 	 	
		 	Name:	 		 	
		 	Title:	 	Manager	 	

 [THIS CERTIFICATE CONTAINS A LEGEND OR LEGENDS ON THE REVERSE SIDE]

 
THE LIMITED LIABILITY COMPANY INTERESTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY JURISDICTION. NO SUCH LIMITED LIABILITY COMPANY INTEREST MAY BE SOLD OR OFFERED FOR SALE UNLESS A REGISTRATION STATEMENT UNDER ALL APPLICABLE SECURITIES LAWS WITH RESPECT TO THE LIMITED LIABILITY
COMPANY INTEREST IS THEN IN EFFECT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THOSE LAWS IS THEN APPLICABLE TO THE LIMITED LIABILITY COMPANY INTERESTS OR SUCH SALE. THE LIMITED LIABILITY COMPANY INTERESTS REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY, AS AMENDED, INCLUDING PROVISIONS RESTRICTING THE TRANSFER OF SUCH LIMITED LIABILITY COMPANY INTERESTS. NO TRANSFEREE OR ASSIGNEE OF ANY OF THE LIMITED
LIABILITY COMPANY INTERESTS REPRESENTED BY THE CERTIFICATE MAY BE ADMITTED AS A MEMBER IN THE ABOVE NAMED COMPANY UNLESS THE CONDITIONS OF THE ABOVE REFERENCED LIMITED LIABILITY COMPANY AGREEMENT, AS AMENDED, ARE SATISFIED. 

THE LIMITED LIABILITY COMPANY INTERESTS REPRESENTED BY THIS CERTIFICATE ARE A SECURITY GOVERNED BY ARTICLE 8 OF THE
UNIFORM COMMERCIAL CODE. 

  
 - 2 - 

 Schedule II 

To 
 Amended and Restated Limited
Liability Company Agreement of 
 Naples JV, LLC 

Index to Certain Defined Terms 
  

			
	1933 Act	  	6(c)(i)
	Act	  	Recital
	Additional Capital Contribution	  	4(a)(i))
	Agreement	  	Recitals
	Approved Transfer	  	6(b)
	Board	  	8(b)(i)
	business day	  	29(iv)
	Cancel Option	  	4(d)(i)(A)(1)
	Capital Call Funding Date	  	4(a)(iv)
	Capital Call Notice	  	4(a)
	Capital Contribution	  	3(a)(ii)
	Capital Default Loan Rate	  	4(d)(i)(D)
	Capital Default Loan	  	4(d)(i)(A)(2)
	Certificate	  	2(d)
	Clearday	  	Recitals
	Clearday Member	  	Recitals
	Code	  	10(d)
	Common LLC Interests	  	3(b)(i)
	Company	  	Recitals
	Conversion Notice	  	4(d)(ii)
	Conversion Right	  	4(d)(ii)
	Converted Amount	  	4(d)(ii)
	Defaulting Member	  	4(d)(i)(A)
	Defaulting Purchasing	  	
	Funding Default Date	  	4(d)(i)(A)
	Initial Capital Contribution	  	3(a)(ii)
	Liquidating Agent	  	12(b)
	Liquidation Distribution	  	12(d)
	LLC Interest	  	3(b)
	Loan Option	  	4(d)(i)(A)(1)
	Losses	  	14(b)(i)
	Members	  	Recitals
	Merger Agreement	  	Recitals
	Mutual Consent	  	8(d)
	Non-Defaulting Member	  	4(d)(i)(A)
	Partnership Representative	  	11(g)(iii)
	Preferred Liquidation Amount	  	11(a)(i)(A)

			
	 Preferred LLC Interests
	  	 3(b)(i)

	 Property Owner
	  	 Recitals

	 Revised Partnership Audit Rules
	  	 11(g)(iii)

	 ROFO Acceptance Notice
	  	 7(b)(i)

	 ROFO Acceptance Period
	  	 7(b)

	 ROFO Buying Member
	  	 7(a)(i)

	 ROFO Closing
	  	 7(d)

	 ROFO Deposit
	  	 7(a)(ii)(C)

	 ROFO Interests
	  	 7(a)(i)

	 ROFO Notice
	  	 7(a)(ii)

	 ROFO Price
	  	 7(a)(ii)(B)

	 ROFO Selling Member
	  	 7(a)(i)

	 ROFO
	  	 7(a)(i)

	 Shortfall Amount
	  	 4(d)(i)(A)(2)

	 Significant Transaction
	  	 8(d)

	 Superconductor
	  	 Recitals

	 Superconductor Member
	  	 Recitals

	 Third Party ROFO Contract
	  	 7(c)(i)(A)

	 Unit
	  	 3(c)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}]]