Document:

Management and Services Agreement

 Exhibit 10.3 
 MANAGEMENT SERVICES AGREEMENT 
 by and between 

PROVISION LIVING, LLC 
 (Manager) 
 and 

WEBSTER CITY IA ASSISTED LIVING TENANT, LLC 
 (Tenant) 
 Webster City, Iowa 

August 31, 2012 

 MANAGEMENT SERVICES AGREEMENT 

THIS MANAGEMENT SERVICES AGREEMENT (“Agreement”), is made as of the 31st day of August, 2012 by and between
WEBSTER CITY ASSISTED LIVING TENANT, LLC, a Delaware limited liability company (“Tenant”) and PROVISION LIVING, LLC, a Missouri limited liability company (“Manager”). 

WITNESSETH: 
 WHEREAS, Webster City IA Assisted Living Owner, LLC (“Landlord”) has acquired fee title to the assisted living facility located at 1401 Wall Street, Webster City, Iowa 50595 (the
“Facility”); and 
 WHEREAS, Tenant and Landlord have entered into a lease agreement with respect to the
Facility (the “Lease”); and 
 WHEREAS, effective as of the Effective Date, Tenant wishes to engage
Manager, and Manager wishes to provide certain services to Tenant during the Term of this Agreement relating to the management of the Facility, on the terms and conditions set forth herein. 

NOW, THEREFORE, the parties hereto, intending to be legally bound, in consideration of the mutual provisions and covenants herein
contained, agree as follows: 
  

	1.	DEFINITIONS. 

1.01 Definitions. The following terms shall have the meanings set forth below when capitalized herein: 

“Administrator” shall mean such individual employed by Manager, at the expense of the Facility as an Operating Expense.
The Administrator will be under the direct supervision of Manager, who is responsible for the daily operations of the Facility. 

“Annual Budget” shall have the meaning set forth in Section 2.01(o). 

“Base Management Fee” shall have the meaning set forth in Section 3.01. 

“Books and Records” means all books and records of Manager pertaining to the Facility for the period after the Effective
Date, including customer referral lists, reports, plans, projections and advertising and marketing materials and financial and accounting books and records. 
 “Business Day” shall mean any day other than a Saturday, Sunday or legal holiday in the State of Iowa. 
 “Code” shall have the meaning set forth in Section 6.03. 

“Contracts” means all agreements between Manager and any other Person, written or oral, for the provision of goods or
services to the Facility. 

 “Control” (including the correlative meanings of the terms
“Controlling”, “Controlled by”, and “under common control with”) as used with respect to Manager, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of
the management policies of Manager whether through the ownership of voting securities, by contract or otherwise. 

“Covered Revenue” shall mean all Revenues booked, recognized or recorded in the period beginning on the Effective Date
and continuing through the Termination Date. 
 “CPI” shall mean the Consumer Price Index for all items for the
United States as published by the United States Department of Labor, Bureau of Labor Statistics. 
 “Current Control
Party” shall have the meaning set forth in Section 4.02(a)(iii). 
 “Effective Date” means the
date of this Agreement. 
 “Excess Cash Flow” means NOI above the Incentive Management Fee Threshold.

 “Exclusion” shall have the meaning set forth in Section 5.03. 

“Facility Employees” shall have the meaning set forth in Section 2.06(a). 

“Fee Year” shall mean the calendar year. 
 “Fixed Asset Supplies” means supply items necessary for the operation of the Facility. 
 “FFE Reserve” means, from the Effective Date through August 31, 2013, an amount equal to the sum of Three Hundred Fifty Dollars ($350) multiplied by the total number of rental units
on an annual basis, and increasing on September 1, 2013, and each anniversary thereof, by three percent (3%). 

“GAAP” means generally accepted accounting principles in the United States. 

“HIPAA” shall have the meaning set forth in Section 8.16. 

“Improvements” shall mean all buildings, structures and other improvements of every kind, including, without limitation,
all roofs, plumbing systems, electric systems and HVAC systems, roadways, pavilions, alleyways, sidewalks, curbs, connecting tunnels, utility pipes, irrigation systems, conduits and lines (on site and off site), appurtenant to or presently situated
at the Facility, and all columns and other support structures and any additions or subsequent modifications thereto. 

“Incentive Management Fee” shall have the meaning set forth in Section 3.02. 

“Incentive Management Fee Threshold” shall mean an amount equal to (a) Five Hundred Seventy-Five Thousand Dollars
($575,000) for the period between January 1, 2013 and December 31, 2013, (b) Seven Hundred Thousand Dollars ($700,000) for the period between January 1, 2014 and December 31, 2014; and (c) an amount each calendar year
thereafter 

  
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determined by taking an amount equal to the previous year’s amount and increasing the same by the lesser of (i) three percent (3%) and (ii) CPI, prorated for any partial Fee
Year during the Term. At such time as certain existing real estate tax abatements expire in the future, the parties agree to adjust the foregoing thresholds to adjust for the loss of the same, dollar for dollar. 

“Increased Insurance Requirements” shall have the meaning set forth in 2.05. 

“Insurance” shall mean all of the insurance listed in Exhibit “A” to this Agreement. 

“Inventories” means inventories as defined by GAAP and provisions in storerooms, medical supplies, other merchandise
intended for sale, mechanical supplies, stationery and other expenses, supplies and similar items. 

“Landlord” has the meaning set forth in the Recitals. 

“Lease” has the meaning set forth in the Recitals. 

“Legal Requirements” means any (i) law, code, rule, ordinance or regulation applicable to Tenant, Manager and/or
the Facility or the operation thereof; (ii) any order of any governmental authority having jurisdiction over Tenant, Manager and/or the Facility or the operation thereof; and (iii) any law, code, rule, regulation, bulletin, decision,
ruling or opinion applicable to reimbursement by Medicare, Medicaid or any other governmental healthcare program for services or items rendered by the Facility. 
 “Management Fees” means the Base Management Fee and Incentive Management Fee. 
 “Manager” has the meaning set forth in the Recitals. 

“Manager Default” shall have the meaning set forth in Section 4.02(a). 

“Manager Losses” shall have the meaning set forth in Section 7.01. 

“Minimum Threshold Return” means (i) from January 1, 2013 through December 31, 2013, the sum of Four
Hundred Eighty-Five Thousand Dollars ($485,000), (ii) from January 1, 2014 through December 31, 2014, the sum of Six Hundred Twenty-Five Thousand Dollars ($625,000) and (iii) for each calendar year thereafter, an amount
determined by taking an amount equal to the previous year’s amount and increasing the same by the lesser of (i) three percent (3%) and (ii) CPI. At such time as certain existing real estate tax abatements expire in the future,
the parties agree to adjust the foregoing thresholds to adjust for the loss of the same, dollar for dollar. 

“NOI” means Revenues less Operating Expenses. 
 “Operating Account” has the meaning set forth in Paragraph 2.01(j). 
 “Operating Expenses” means any or all, as the context requires, of the following: (i) all costs and expenses incurred in connection with the Tenant, operation, management and
maintenance of the Facility, including, without limitation, all administrative and general 

  
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expenses, expenses relating to employment of employees at the Facility, advertising and business promotion expenses; (ii) Management Fees; (iii) the cost of Inventories and Fixed Asset
Supplies consumed in the operation of the Facility; (iv) costs and expenses for preparation of claims and billing submissions; (v) insurance costs; (vii) all real property and personal property taxes and assessments; (vi) those
costs and expenses that are expressly identified as Operating Expenses in this Agreement; (vii) budgeted costs related to accounting software fees and Manager’s server utilization fees; and (viii) any other non capital costs and
expenses incurred in connection with the Tenant or operation of the Facility or as are specifically provided for elsewhere in this Agreement. Operating Expenses shall not include any deductions for interest for property debt service, the FFE
Reserve, or depreciation or amortization, income, franchise or similar taxes, or rent payable from Tenant to Landlord pursuant to the Lease, or costs relating to the Landlord’s or Tenant’s ownership structure nor shall Operating Expenses
include costs incurred by Manager’s or Tenant’s corporate offices, including salaries, other staffing related costs, corporate overhead, and any other charges unless they are used in the direct operations of the Facility and are approved
in advance in writing by the Tenant. 
 “PEO” shall have the meaning set forth in Paragraph 2.06(a).

 “Person” means an individual, corporation, partnership, limited liability company, limited liability
partnership, joint venture, trust or unincorporated organization, joint stock company or other similar organization, government or any political subdivision thereof, or any other legal entity. 

“Pooling Agreement” means that certain Pooling Agreement dated on or about the date hereof by and between Manager,
Tenant and certain affiliates of Tenant. 
 “Real Property” means the real property upon which the Facility is
located and the Improvements. 
 “Receivables” means all billed and unbilled accounts receivable, trade
receivables, work in progress, notes receivable and other receivables arising out of or related to the Facility. 

“Revenues” shall mean, for the applicable period of time, but without duplication, all gross revenues and receipts of
every kind derived by or for the benefit of Tenant, Manager or their affiliates from operating or causing the operation of the Facility and all departments and parts thereof, determined in accordance with GAAP for each accounting period (with the
exception of any pass-through fees), including, but not limited to: income from both cash and credit transactions (after reasonable deductions for rent concessions or rebates given, paid or returned in ordinary course of obtaining Revenues, bad debt
allowance, discounts for prompt or cash payments, refunds and credit card payment fees) from rental or subleasing of every kind; community fees; monthly occupancy fees; healthcare fees and ancillary service fees received pursuant to various
agreements with residents of the Facility; license, lease and concession fees and rentals, off premises catering, if any, and parking; income from vending machines; proceeds, if any, from business interruption (but only to the extent it reimburses
Tenant for lost income and not for additional or other expenses) or other loss of income insurance; club membership fees; income from food and beverage and catering sales; wholesale and retail sales of merchandise (other than proceeds from the sale
of furnishings, fixtures and equipment no longer necessary to 

  
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the operation of the Facility); and service charges, to the extent not distributed to Facility Employees as gratuities; all determined in accordance with GAAP; provided, however, that Revenues
shall not include the following: (i) Management Fees or reimbursements paid by Tenant to Manager pursuant to this Agreement; (ii) gross receipts of revenue generated by lessees, sublessees, licensees or concessionaires;
(iii) gratuities to Facility Employees; (iv) federal, state or municipal excise, sales, occupancy, use or similar taxes collected directly from residents or guests of the Facility or included as part of the sales price of any goods or
services; (v) proceeds of any insurance policy (except for business interruption or loss of income insurance as provided above) or condemnation or other taking; (vi) any proceeds from any sale of the Facility or any other capital
transaction; (vii) proceeds of any financing or refinancing of any debt encumbering the Facility or any portion thereof; (viii); proceeds from the disposition of furnishings, fixtures and equipment or any capital asset no longer necessary for
the operation of the Facility; (ix) and interest received or accrued with respect to amounts deposited in any operating or reserve accounts of the Facility; (x) security deposits until such time as the same are applied to current fees due
for services rendered for the Facility; (xi) awards of damages, settlement proceeds and other payments received by Tenant in respect of any litigation other than litigation to collect fees due for services rendered from the Facility or
otherwise compensating Tenant or Landlord for lost revenue; and (xii) payments under any policy of title insurance. Any community fees or deposits or other amounts that are refunded to a resident shall be credited against Revenues during the
month in which such refunds are made, if previously included in Revenues. Notwithstanding any GAAP accounting treatment requirement, for the express purpose of calculating Management Fees and Incentive Management Fees due and payable, any and all
non-refundable community fees and non-refundable security deposits earned when residents move into the Facility shall be deemed earned in the month received (or reflected as a reduction in fees in the month refunded, if applicable) and included in
the definition of Revenues contained in this paragraph. 
 “Shortfall Termination Option” shall have the
meaning set forth in Section 4.02(c). 
 “Subordinated Base Management Fee” shall have the meaning set
forth in Section 3.03. 
 “Tenant” has the meaning set forth in the Recitals. 

“Tenant Default” shall have the meaning set forth in Section 4.02(b). 

“Tenant Losses” shall have the meaning set forth in Section 7.02. 

“Term” shall have the meaning set forth in Section 4.01. 

“Termination Date” means the date this Agreement terminates or expires per the terms hereof. 

“Termination Threshold” means (a) $60,000 for the period commencing September 1, 2012 and ending
December 31, 2012; (b) $430,000 for the period commencing January 1, 2013 and ending December 31, 2013; (c) $550,000 for the period commencing January 1, 2014 and ending on December 31, 2014, and (d) for each
calendar year thereafter, an determined by taking an amount equal to the previous year’s amount and increasing the same by the lesser of (i) three percent (3%) and (ii) CPI. At such time as certain existing real estate tax
abatements expire in the future, the parties agree to adjust the foregoing thresholds to adjust for the loss of the same, dollar for dollar. 

  
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 “Threshold Shortfall” shall have the meaning set forth in
Section 3.03. 
  

	2.	RIGHTS AND RESPONSIBILITIES. 

 2.01 Duties and Responsibilities of Manager. Tenant hereby appoints Manager as the sole and exclusive manager of the Facility and grants Manager all the authority necessary to carry out, in
the manner deemed best by Manager and consistent with the objectives and obligations set forth in this Agreement, the management of the Facility on behalf of the Tenant. Notwithstanding anything provided herein to the contrary, Tenant hereby retains
the control and authority (a) required by law for Tenant to maintain the license from the State of Iowa that is required for the operation of the Facility as an assisted living facility, and (b) not otherwise specifically delegated to
Manager hereunder. Manager and Tenant are not partners or joint-venturers and it is agreed that Manager is acting solely as the agent of Tenant in performing services or acquiring assets or supplies as provided hereunder. Tenant shall honor, as its
own, all contracts, agreements, and commitments entered into by Manager with respect to the management and operation of the Facility so long as they are required to meet the Annual Budget and comply with the provisions of Section 2.03(e).
Provided that Manager has provided notice to Tenant of an insufficient balance in the Operating Account in accordance with the requirements of this Agreement, Manager shall not be required to make monetary expenditures on Tenant’s behalf to the
extent that the Operating Account does not contain sufficient funds to cover such expenditures. As the exclusive manager of the Facility, Manager shall perform the following, but only with respect to the Facility and subject to the rights and
responsibilities of the Tenant: 
 (a) Manage all aspects of the Facility in a professional, competent and business-like manner; 

(b) Recruit, hire, train and supervise Facility Employees, with no such personnel being employed by Tenant; 

(c) Manage the available cash flow of the Facility, including, without limitation, (i) timely billing of all residents and or other third-party
payors for all services or items provided by the Facility, (ii) timely paying all Operating Expenses from available cash flow; 
 (d)
Prepare, keep and provide Tenant with access during regular business hours to all contracts, Books and Records, documents, policies and other information necessary for the lawful operation and sound financial management of the Facility; 

(e) As an Operating Expense and in accordance with the Annual Budget, purchase and keep the Facility furnished with all necessary furnishings, Fixed
Asset Supplies, equipment and Inventories and services from third parties; provided, however, that no material (defined as more than the greater of 5% and Five Thousand and NO/100 Dollars ($5,000.00) of each budgeted Operating Expense
line item at the Facility without Tenant’s prior approval as set forth in (o) below) non-budgeted expenditure for any such item shall be made without Tenant’s prior written approval, which approval shall not be unreasonably withheld
or delayed, except expenditures reasonably necessary in the opinion of Manager to maintain services to residents and patients as a matter of life safety; 

  
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 (f) Provide a qualified full-time Administrator at the Facility who will assume general operational
responsibility for such Facility (whose expense shall be an Operating Expense); provide notice including a summary of such person’s prior experience to Tenant in advance of any change in the Administrator, provided that Tenant shall have the
right to review any person hired by Manager for such administrator position and to consult with Manager regarding such hiring (which right shall not be deemed to be a right of Tenant to approve such Administrator); recruit, hire, train, promote,
direct and terminate the employment of all other personnel necessary to maintain and operate the Facility; establish performance standards, salary and compensation scales, promotion policies, fringe benefit arrangements, and other personnel policies
and guidelines, all in accordance with the Annual Budget; provided, however, that no material non-budgeted personnel expense shall be incurred without Tenant’s prior written approval; provide management support to the
Administrator; and provide such other supervision, management and financing direction as may be required for the Administrator efficiently to perform his or her duties and responsibilities; 
 (g) As an Operating Expense, comply with Manager’s accounting and reporting obligations as set out in this Agreement; 
 (h) As an Operating Expense, prepare and file in a timely manner in accordance with applicable regulations, all necessary statistical reports (specifically including, but not limited to, payroll, sales,
use and occupancy tax reports and returns) and data to meet all local, state and federal regulatory requirements; provided, however, that nothing contained herein shall be deemed or construed to require Manager to prepare or file
Tenant’s local, state or federal income tax returns or schedules thereto; 
 (i) Process all insurance claims for the Facility;
provided, however, that nothing contained herein shall be deemed or construed to require Manager to prepare or file residents’ insurance claims; 
 (j) Collect the Revenues; deposit all such funds received by Manager for or on behalf of Tenant in a Tenant designated bank account (“Operating Account”) established by Tenant for such
purpose, as to which Manager shall have the right to deposit and withdraw funds, pay out of such funds all Operating Expenses, its compensation and any other sums due it from Tenant, and all other sums properly payable pursuant to any of the
provisions hereof (all expenditures authorized hereby being considered Operating Expenses to be paid from Tenant’s funds received by Manager); and hold, remit or expend the balance of such funds, if any, as Tenant may direct provided,
further, that funds may not be withdrawn by Tenant if the aggregate minimum cash balance required by Section 2.02(d) hereof would be impaired thereby; 
 (k) As an Operating Expense and in accordance with the Annual Budget, engage or utilize counsel satisfactory to Tenant, defend any legal proceedings or claims relating to operation of the Facility, and
cause such legal proceedings to be instituted as may be necessary to enforce payment of charges or compliance with other terms of admission agreements, or to dispossess residents and patients involving setoffs of damage claims; provided,
however, that no material non-budgeted legal expense shall be incurred without Tenant’s prior written approval; 

  
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 (l) As an Operating Expense and in accordance with the Annual Budget, develop, implement, manage and
supervise marketing and public relations programs for the Facility as follows; provided, however, that such programs shall be subject to Tenant’s prior written approval: 

(i) develop a marketing plan, encompassing an advertising plan, advertising, marketing, public relations, and networking; 

(ii) develop and design marketing and advertising materials; 
 (iii) construct appropriate signage on the Facility property pursuant to any local governmental requirements; 
 (iv) prospect database management; and 
 (v) conduct surveys of residents and
their families regarding selection of the Facility. 
 (m) As an Operating Expense: (i) file and pay all taxes, including but not limited
to real and personal property taxes (as applicable), and assessments (other than income, franchise and similar taxes) on the Facility; (ii) pay all premiums for insurance on the Facility; and (iii) pay such reserves as Tenant may direct;

 (n) As an Operating Expense, prepare and deliver to Tenant the following statements for the Facility prepared in accordance with GAAP and
applied consistently from period to period (which shall be certified by an officer of Manager as being true and accurate in all material respects) by the tenth (10th) Business Day of each calendar month during the Term, except for the rent
roll, which shall be submitted on or before the fifth (5th) Business Day of each calendar month during the Term: 
 (i)
Balance sheet and income statement (in Microsoft Excel format); 
 (ii) Trial balance with 3 columns (balance forward, net
debits/credit, and ending balance in Microsoft Excel format); 
 (iii) Rent roll; 

(iv) Report of daily census for the month; 
 (v) Marketing report; 
 (vi) Twelve month rolling cash flow projection;

 (vii) Detail of Management Fee calculations; 
 (viii) Capital expenditure reconciliation to the approved capital budget in the Annual Budget; 

  
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 (ix) Disclosure of any material communications with regulatory agencies and state surveys;

 (x) Equity intercompany reconciliation, if applicable; 

(xi) Most recent sales tax filings with the monthly reporting submittals to help validate to our tax department that you are current with
filings; 
 (xii) Reasonably cooperate with and assist Tenant in satisfying any requirements of lender providing financing for
the Facility; and 
 (xiii) Any other information relating to the Facility reasonably requested by Tenant. 

(o) Manager shall prepare and submit to Tenant for Tenant’s approval at least sixty (60) days prior to the commencement of each calendar year,
an annual plan and budget to cover all anticipated Revenues and Operating Expenses of the Facility for that calendar year, including capital improvements (the “Annual Budget”). Tenant shall have thirty (30) business days to
approve the Annual Budget by written notice. If the Tenant does not approve the Annual Budget, the Tenant and Manager agree to participate in telephone conferences or meet at the office of Manager to conduct negotiations in good faith and use
commercially reasonable efforts to arrive at a mutually acceptable Annual Budget. During such negotiations, each party agrees to apply reasonable expectations to projections of Operating Expenses and Revenues for the next calendar year. 

Until the current calendar year Annual Budget is resolved, the prior calendar year Annual Budget shall apply for the current calendar
year with respect to those line items that are subject to dispute, with Operating Expenses adjusted by increases in the CPI (as hereafter defined) from the prior calendar year; otherwise all budgeted items approved by Tenant shall apply for such
calendar year. 
 Except as expressly provided for in this Agreement and except for items relating to the health and safety of
Facility residents or employees, otherwise herein, Manager shall not make expenditures for any item aggregating materially in excess of the amount budgeted, defined as more than the greater of five percent (5%) and Five Thousand and NO/100
Dollars ($5,000.00) of each budgeted Operating Expense line item for the Facility without Tenant’s prior written approval. The Annual Budget shall also include Manager’s recommendations and suggestions for the rental rates, ancillary
service fees, and other costs and charges to the residents of the Facility (and, in such regard, Manager shall monitor rates in the applicable service areas, and assist Tenant in obtaining approval of appropriate rates from governmental and
third-party paying agencies); the salaries and fringe benefits of all Facility Employees; and major purchase contracts for supplies. Manager agrees to use its best efforts to maintain levels of rates and charges sufficient to assure the operation of
the Facility in a first-class manner, and to provide for the payment of all costs of operation of the Facility, specifically including, but not limited to, Base Management Fee. Manager shall, at all times, maintain full and complete documentation
regarding all of its actions taken to fulfill its duties as manager of the Facility. All Books and Records and reports maintained or prepared by Manager for or in connection with the operation of the Facility shall be Tenant’s property. During
the term hereof, Tenant shall, at all reasonable times, and at its expense, have the right to inspect and audit such Books and Records and reports, and to inspect all parts of the Facility. 

  
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 (p) As an Operating Expense, prepare the following reports consistent with GAAP (which reports shall be
certified by an officer of Manager as being true and accurate in all material respects) and management status reports of the Facility, to be submitted to Tenant within ten (10) days after the end of each calendar quarter. 

(i) All balance sheet reconcilements; 
 (ii) Search for unrecorded liabilities; 
 (iii) Signed Certification statement;
and 
 (iv) Manager will cooperate in providing other reports as reasonable and necessary which are requested by the Tenant.

 (q) As an Operating Expense, prepare the following reports consistent with GAAP (which reports shall be certified by an officer of Manager as
being true and accurate in all material respects) and management status reports of the Facility, to be submitted to Tenant within seventy-five (75) days after the end of each calendar year, and each of which to be subject to an audit, at
Tenant’s cost, by a firm of accountants selected by Tenant, at Tenant’s expense (but not to be used in computing the Management Incentive Fee). 
 (i) Balance sheet and income statement; 
 (ii) Revenues, Operating Expenses,
Excess Cash Flow and NOI; 
 (iii) Calculations of Management Fees and Subordinated Base Management Fee; 

(iv) Fixed asset additions; 
 (v) Capital expense reconciliation to the capital budget in the Annual Budget; 

(vi) Communications with any regulatory agencies; and 
 (vii) Manager will cooperate in providing other reports as reasonable and necessary which are requested by the Tenant. 
 (r) Within fifteen (15) days after the end of each calendar quarter, Manager shall provide Owner with a certification executed by the controller or president of Manager in the form attached hereto as
Exhibit “B”; 
 (s) Provide performance standards and review procedures for the Administrator and obtain and maintain licenses and
staff to deliver the appropriate care and services of all residents of the Facility; 
 (t) Any other services related to the operation of the
Facility as requested by Tenant from time to time; 

  
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 (u) Obtain and keep in full force and effect in the name of Tenant any and all licenses and permits
necessary for the operation of the Facility. Manager shall not be required to use its own funds to pay any liabilities or obligations related to the operation of the Facility except to cover its own costs and expenses in providing corporate
services; 
 (v) Manager shall provide written notice to Tenant, upon Tenant’s request, pursuant to Section 8.12 in the event that
there is any change in the ownership of Manager, whether direct or indirect, regardless of whether such change constitutes a change in Control. Manager shall provide such notice to Tenant no later than ten (10) Business Days following its
receipt of Tenant’s request. Manager shall only be obligated to respond to one (1) such request from Tenant every calendar quarter, unless Tenant’s request is in response to a request for such information from a third party to whom
Tenant has an obligation to respond, in which case Manager shall provide written notice as outlined in this paragraph regardless of whether Manager has responded to a previous request during such calendar quarter; and 

(w) Manager shall maintain and provide to Tenant a complete copy of Manager’s “Emergency Response Plan” or other documented crisis and/or
disaster communication and management plan for the Facility, in form and substance required by applicable Legal Requirements for assisted living facilities, at the following times: (1) annually, at the same time as Manager submits its Annual
Budget to Tenant; (2) no later than ten (10) Business Days following its receipt of Tenant’s request for same; and (3) upon the expiration of the Term or earlier termination of this Agreement. 

2.02 Duties and Responsibilities of Tenant. Tenant shall perform the following, subject to the rights and responsibilities
of the Manager: 
 (a) Execute applications or other relevant documentation for licenses, permits or other instruments necessary for operation
of the Facility and provide such information and perform such acts relative to the operation of the Facility as are required by law, regulation or governmental agency in order to obtain and/or maintain any license, permit, instrument, certificate,
certification or approval with respect to the proper operation of the Facility; 
 (b) Reasonably cooperate with Manager in its responsibility
to obtain and keep in full force and effect in the name of Tenant any and all licenses and permits necessary for the operation of the Facility; 

(c) Reasonably cooperate, participate in and be responsible for any survey, inspection or site investigation conducted by a governmental, regulatory,
certifying or accrediting entity with authority or jurisdiction over the Facility; 
 (d) Ensure that the Operating Account has a minimum
balance of at least $50,000 at all times for the Facility. Tenant agrees to deposit an amount of money into the Operating Account that is sufficient to restore the minimum balance within five (5) Business Days of receiving written notice from
Manager of the shortfall that includes a reasonable explanation accounting for the shortfall; and 
 (e) Make deposits to the Operating Account
promptly following written notice from Manager in the event the balance of the Operating Account shall at any time be insufficient to pay incurred or anticipated Operating Expenses. Such deposits shall be sufficient in amount to comply with the
requirements of Section 2.02(d). 

  
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 2.03 Limitations on Authority of Manager. Notwithstanding anything contained
in this Agreement to the contrary and in addition to the various other provisions of this Agreement, Manager shall not, without the prior written consent of Tenant, perform any of the following actions on behalf of Tenant: 

(a) Borrow money or incur any indebtedness pursuant to the Annual Budget on behalf of Tenant, except for trade payables incurred in the ordinary course
of business; 
 (b) Pledge or provide a security interest in any assets of Tenant; 
 (c) Sell, lease or otherwise dispose of any assets of Tenant or the Facility, except for Fixed Asset Supplies and Inventories in the ordinary course of business; 

(d) Adjust or settle any claim under any insurance policy or litigation or other claim applicable to the Tenant or the Facility; 

(e) Enter into any contract or other agreement which will obligate Tenant without the prior written consent of Tenant except for contracts containing a
30 day cancellation clause with no fee or penalty; or which contract or other agreement does not exceed Twenty Thousand and NO/100 Dollars ($20,000.00) in any calendar year; 
 (f) Release, compromise, assign or transfer any claim, right or benefit of Tenant, except in the ordinary course of managing and operating the Facility as provided herein; or 

(g) Confess a judgment on behalf of or against Tenant. 
 2.04 Limitation on Liabilities of Tenant. Tenant and Manager acknowledge and agree that Tenant will not assume or acquire (i) any liabilities or accounts payable associated with the
operation of the Facility and arising or accruing in the period prior to the Effective Date, (ii) any of the past or current state and federal licenses or certifications for operation of the Facility (if any); or (iii) any of the past or
current provider numbers or provider agreements executed or maintained by Tenant and/or the Facility for participation in Medicaid, Medicare or any other state or federal government reimbursement program, or with any third party payor (if any),
except for the personal care services program provider agreements. This Section shall survive termination or expiration of this Agreement for a period of ninety (90) days. 
 2.05 Insurance. From the date of this Agreement and continuing until the conclusion of the Term, Manager shall procure and maintain (or Tenant shall procure and maintain, at Tenant’s
election), as an Operating Expense and with the prior written approval of Tenant, the Insurance. Notwithstanding any of the terms and conditions of this Agreement, in the event Manager shall be required to meet insurance requirements substantially
in excess of the insurance coverage types and/or dollar limitations for the Insurance (“Increased Insurance Requirements”), the difference in cost between providing insurance to satisfy the Increased Insurance Requirements and the
cost of the 

  
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Insurance shall be a reduction in calculating the Minimum Return Threshold and the Incentive Management Fee Threshold. The carrier and the amount of coverage of each policy of insurance shall be
satisfactory to Tenant. Manager shall be designated as a named insured with Tenant and Landlord included as additional insureds under each insurance policy. All deductibles, legal settlements, and any other costs related to claims under the
insurance policies required herein shall be an Operating Expense of the Facility. Tenant may elect, in its sole discretion and upon thirty (30) days’ written notice to Manager, to procure and maintain, as an Operating Expense, all Facility
insurance policies required and set forth on Exhibit “A,” except for Manager’s workers compensation and employers’ liability insurance policies. 
 2.06 Facility Employees; Proprietary Interest. 
 (a) All persons employed in the
operation of the Facility (“Facility Employees”) shall be employees of the Manager or a contracted professional employment organization (“PEO”). Using the Revenues (supplemented, if necessary, by Tenant’s
funds), Manager shall make disbursements and deposits for all compensation and other amounts payable with respect to Facility Employees, specifically including, but not limited to, unemployment insurance, social security, benefits, workers’
compensation, and other charges imposed by a governmental authority or provided for in a union agreement. All payroll and payroll administration costs and PEO fees, specifically including, but not limited to, those enumerated above, of the Facility
Employees are Operating Expenses to be reimbursed by Tenant to the Manager, as applicable from Revenues (supplemented, if necessary, by Tenant’s funds). Any payment by Tenant to Manager for the Facility Employees shall be in addition to all
Management Fees payable under this Agreement. Except as otherwise provided herein, all home office payroll costs and overhead expenses for employees of Manager are corporate administrative costs to be borne by Manager without reimbursement.

  

	3.	COMPENSATION TO MANAGER. In consideration of Manager’s performance of the services required under this Agreement, Manager shall be compensated as
follows: 

 3.01 Base Management Fee. Manager shall receive five percent (5%) of the collected
Revenues received each month (“Base Management Fee”). The Base Management Fee for each month shall be paid to the Manager no later than fifteen (15) days following the end of that month. 

3.02 Incentive Management Fee. Commencing with the 2013 Fee Year, Manager shall be entitled to fifty percent (50%) of
Excess Cash Flow in any given Fee Year, subject to a cap of two percent (2%) of total collected Revenue (“Incentive Management Fee”). Manager’s entitlement to the Incentive Management Fee, if any, shall commence on
January 1, 2013. The Incentive Management Fee shall be measured and paid each calendar quarter, but reconciled on an annual basis, with a final measurement done within sixty (60) days following the end of each Fee Year. Each Fee
Year’s calculation shall stand alone and not accrue or accumulate from Fee Year to Fee Year. The Incentive Management Fee shall be considered an Operating Expense, but shall be excluded when computing the Incentive Management Fee and
Subordinated Base Management Fee. The Incentive Management Fee shall be determined by computing the year to date Excess 

  
 - 13 -

 
Cash Flow and adding to Excess Cash Flow any Incentive Management Fee previously paid to Manager during such Fee Year as an Operating Expense for that Fee Year. The amount of Incentive Management
Fee to be paid at any quarter during the Fee Year will be the Incentive Management Fee expense less any Incentive Management Fee expense previously paid for the Fee Year being measured. 

3.03 Subordination of Base Management Fee. Commencing on January 1, 2013, and continuing thereafter during the Term, in
the event NOI does not equal or exceed the Minimum Threshold Return per Fee Year (before funding debt service, but after Base Management Fee) (a “Threshold Shortfall”), then the lesser of the amount of such Threshold Shortfall and
forty percent (40%) of the Base Management Fee (the lesser of such amount, the “Subordinated Base Management Fee”) shall not be paid but shall only accrue and be payable to Manager in accordance with the terms of this
Section 3.03. The calculation shall be measured each calendar quarter and reconciled on an annual basis, with a final measurement done within sixty (60) days following the end of each Fee Year. The Subordinated Base Management Fee shall be
payable to the Manager within fifteen (15) days of the end of the quarter in which, for the applicable Fee Year, the aggregate excess of the NOI over the aggregate Minimum Threshold Return for all calendar quarters in the current Fee Year since
a Threshold Shortfall within that Fee Year commenced has exceeded the Threshold Shortfall; provided, however, that if the Threshold Shortfall is not recouped within the Fee Year in which the Threshold Shortfall commenced then such
Subordinated Base Management Fee shall not be payable to Manager. Each Fee Year’s calculation shall stand alone and not accrue or accumulate from Fee Year to Fee Year. In no event shall Subordinated Base Management Fee be paid from sources
other than cash flow resulting from NOI above the Minimum Threshold Return. 
  

	4.	TERM AND TERMINATION. 

 4.01 Term. Subject to Section 4.02, this Agreement shall have a term (the “Term”) commencing on the Effective Date and terminating on the tenth (10th) anniversary of the
Effective Date. The term may be extended for an additional five (5) years upon mutual written agreement of Manager and Tenant. 
 4.02 Termination. 
 (a) Tenant shall have the right to terminate this Agreement,
without paying any fee or penalty, when and if one of the following events occur (hereinafter collectively referred to as “Manager Default”), after which Tenant shall have the right – but not the obligation – to declare a
termination of this Agreement in accordance with the termination protocols set forth below: 
 (i) Appointment of a receiver or
trustee to manage the assets of Manager; 
 (ii) Assignment for the benefit of creditors of the assets of Manager; 

(iii) A change in fifty percent (50%) or more ownership or Control, whether direct or indirect, of Manager without Tenant’s
prior written consent, which consent may not be unreasonably withheld subject to the terms hereof. Tenant may withhold its consent to such a 

  
 - 14 -

 
change in the ownership or Control of Manager in the event that the proposed transferee does not meet the following criteria: (a) such transferee has the financial capacity that equals or
exceeds that which Manager has as of the date of this Agreement; (b) such transferee is known to be of good character and in good standing in its current business dealings; (c) such transferee is experienced in the assisted living facility
industry or has or intends to hire a qualified senior living facility manager; and (d) has all appropriate licenses and industry approvals to operate an assisted living facility. Notwithstanding the foregoing, such a change in ownership or
Control that directly results from the death of any person with a Controlling interest in Manager shall be permissible provided at least one of David B. Weiss and Todd E. Spittal (a “Current Control Party”) retains a Controlling
interest in Manager; provided, however, that in the event of the death of Todd E. Spittal, David B. Weiss must select an individual satisfying the criteria stated in items (a), (b), (c) and (d) of this
Section 4.02(a)(iii) to manage the day-to-day business operations and affairs at the Facility within one (1) year. If, as a result of a death of a Current Control Party, the surviving Current Control Party does not retain a Controlling
interest in Manager, a transfer of Control shall be permitted only if the new Controlling party satisfies the criteria stated in items (a), (b), (c) and (d) of this Section 4.02(a)(iii); 

(iv) Both Current Control Parties are dead and Tenant has not approved a change in ownership or Control pursuant to
Section 4.02(a)(iii) with respect to either Current Control Party; provided, however, that Tenant has not unreasonably delayed any such approval; 
 (v) A ban on admissions, suspension of any operating license, or termination or revocation of any license, if not corrected within five (5) Business Days, or longer as may be required to reinstate or
otherwise make effect any license; 
 (vi) Manager’s gross negligence or willful misconduct; 

(vii) Any voluntary act of bankruptcy by Manager, or any involuntary proceeding commenced against Manager and not dismissed within sixty
(60) days of the commencement thereof ; 
 (viii) Manager’s breach of any provisions of this Agreement, where such
breach has not been cured within thirty (30) days after the giving of written notice of the breach or such longer period as agreed to by Tenant and as may reasonably be required to diligently effect such cure, specifying the nature of the
breach, and complying with all provisions regarding mediation set forth herein; and/or 
 (ix) Any “Manager Default”
occurs under any other management agreement subject to the Pooling Agreement. 
 (b) Manager shall have the right to terminate this Agreement if
and when one of the following events occur (hereinafter “Tenant Default”), after which Manager shall have the right – but not the obligation – to declare a termination of this Agreement in accordance with the termination
protocols set forth below: 
 (i) appointment of a receiver or trustee to manage the assets of Tenant; 

  
 - 15 -

 (ii) assignment for the benefit of creditors of the assets of Tenant, except Manager shall
agree to enter into any agreements which may be required on behalf of the Mortgagee in order for the Landlord to obtain financing; 
 (iii) any voluntary act of bankruptcy by Tenant, or any involuntary proceeding commenced against Tenant and not dismissed within sixty days of the commencement thereof ; and/or 

(iv) failure by Tenant to pay Manager in accordance with Article 3 hereof within ten (10) calendar days after such amount becomes
due. 
 (v) Failure by Tenant to make any deposit to the Operating Account in order to comply with its obligations under
Section 2.02 within five (5) Business Days after a request in writing made by Manager. 
 (vi) Tenant’s breach of
any material term, where such breach has not been cured within thirty (30) days after the giving of written notice of the breach or such longer period as may reasonably be required to diligently effect such cure, specifying the nature of the
breach, and complying with all provisions regarding mediation set forth herein. 
 (c) At any time following the Effective Date through the end
of the Term, Tenant shall have the option to terminate this Agreement in the event that NOI in a given Fee Year (or partial Fee Year for the period from the Effective Date through December 31, 2012) does not equal or exceed the Termination
Threshold (the “Shortfall Termination Option”), in which case Tenant shall not be obligated to pay any fee or penalty to Manager as a result of such termination. In order to exercise the Shortfall Termination Option, Tenant must
provide ninety (90) days’ written notice to Manager of Tenant’s election to terminate, provided that such written notice is delivered to Manager no later than sixty (60) days after Tenant’s receipt of the annual reports to
be delivered by Manager to Tenant pursuant to Section 2.01. Manager shall have the right to cure any shortfall of NOI that triggers a Shortfall Termination Option by paying Tenant the amount by which the Termination Threshold exceeded the NOI
for such Fee Year, provided that (i) Manager cures such a shortfall within ten (10) days of receiving written notice of Tenant’s exercise of the Shortfall Termination Option, and (ii) Manager has not cured a shortfall of NOI more
than three (3) times during the Term. 
 (d) At any time following the Effective Date through the end of the Term, Tenant shall have the
right to terminate this Agreement for any reason or for no reason, upon sixty (60) days prior written notice to Manager and payment to the Manager, upon the effective date of such termination, of an amount equal to the lesser of (i) the
product of the average of the Management Fees (after deducting any Subordinated Base Management Fee) for the prior three (3) months multiplied by twenty four (24) and (ii) the product of the average of the Management Fees (after
deducting any Subordinated Base Management Fee) for the prior three (3) months times multiplied by the number of months remaining in the Term. 
 (e) If at any time Landlord or an affiliate of Landlord sells the Facility to a third party who is not an affiliate of Landlord or Tenant, Tenant shall have the option to terminate this Agreement, subject
to the notice and payment requirements set forth in Section 4.02(d). 

  
 - 16 -

 4.03 Effect of Termination. Upon termination of this Agreement for Default
(and irrespective of which Party terminates this Agreement), all of the following shall apply: 
 (a) Manager shall turn over to Tenant a
complete set of Books and Records pertaining to the Facility within three (3) Business Days after the termination has become effective; 

(b) Each party shall make information related to this Agreement and the Facility available to the requesting party for tax and other reporting purposes;
and 
 (c) All sums due Manager hereunder, whether pertaining to expenses, unreimbursed expenses or the Management Fees shall be due and payable
by Tenant to Manager within ten (10) calendar days after the Termination Date. 
  

	5.	REPRESENTATIONS AND WARRANTIES OF THE TENANT. 

 As a material inducement for Manager to enter into this Agreement and to consummate the transactions contemplated hereby, Tenant hereby makes the following representations and warranties as of the
Effective Date, each of which is relied upon by Manager regardless of any investigation made or information obtained by Manager: 

5.01 Due Organization. Tenant is a corporation duly organized and validly existing under the laws of the State of Delaware.

 5.02 Approval of Agreement. The execution, delivery and performance of this Agreement: (i) has been duly
approved by all requisite corporate action on the part of Tenant and such actions are within the corporate powers, authority and legal right of Tenant; (ii) does not violate or conflict with the organizational documents of Tenant, or any
material contract to which Tenant is a party, or any applicable law or governmental regulation. This Agreement (and each agreement referenced herein) constitutes the legal, valid, and binding obligation of Tenant, enforceable against such party in
accordance with their respective terms. 
 5.03 Exclusion. Tenant represents and warrants to Manager that neither
Tenant nor any of its owners, officers, directors, managers, or employees are excluded from participation in any federal health care programs, as defined under 42 U.S.C. 1320a-7b(f), or any form of state Medicaid program (each, an
“Exclusion”), and to Tenant’s knowledge, there are no pending or threatened governmental investigations that may lead to such Exclusion. Tenant agrees to notify Manager of the commencement of any such Exclusion or investigation
within seven (7) Business Days of Tenant’s first learning of it. Manager shall have the right to terminate this Agreement upon learning of any investigation which may result, with reasonable probability, in Tenant’s Exclusion, after
giving Tenant not less than sixty (60) days prior written notice of such election. Tenant agrees to notify Manager of the status of any such investigation. In the event of Tenant’s Exclusion, Manager shall have the right to terminate this
Agreement effective as of the earlier to occur of the following: (i) sixty (60) days after notice from Manager of such termination or (ii) the date on which Tenant shall enter into an agreement with a replacement Manager. In the event
Manager shall give notice to Tenant following Tenant’s Exclusion under this Section 5.03, Tenant agrees to use its best efforts in good 

  
 - 17 -

 
faith to enter into an agreement with a replacement Manager as soon as possible following Manager’s notice. Tenant agrees to indemnify Manager and save it harmless from any penalty, loss,
cost or damage Manager may incur as a result of Tenant’s Exclusion. 
  

	6.	REPRESENTATIONS AND WARRANTIES OF MANAGER. Manager hereby represents and warrants to Tenant as follows: 

6.01 Organization. Manager is a limited liability company duly organized, validly existing and in good standing under the
laws of the State of Missouri and authorized to do business in the State of Iowa. 
 6.02 Authorization; No Violation of
Laws or Agreements. Manager has full power and authority, and has taken all requisite corporate action, to enter into and perform under this Agreement and all other agreements and documents contemplated by or related to this Agreement to
which Manager is a party. Nothing in the articles of organization or operating agreement of Manager, as amended, or any other agreement, instrument, decree, proceeding, law or regulation (except as specifically referred to in or contemplated by this
Agreement) by or to which Manager is bound or subject would prohibit or inhibit Manager from consummating this Agreement on the terms and conditions herein contained. Upon execution and delivery, this Agreement and any agreement or document to be
executed by Manager pursuant hereto shall constitute a legal, valid and binding obligation of Manager in accordance with its terms. 
 6.03 Eligible Independent Contractor. Manager is and shall at all times be an “eligible independent contractor” as defined in Section 856(d)(9) of the Internal Revenue Code of
1986, as amended from time to time (the “Code”) (and taking into account the restrictions on ownership of the Manager by shareholders of CNL Healthcare Trust, Inc., and restrictions on ownership of CNL Healthcare Trust, Inc., by
owners of the Manager set forth in Section 856(d)(3)), and Manager will and shall cause the Facility to be operated in such a manner so that it qualifies as a “qualified health care facility” within the meaning of
Section 856(e)(6)(D) of the Code at all times. In the event that Tenant reasonably concludes that the terms of this Agreement will have any effect as to cause the rent under the Lease to fail to qualify as “rents from real property”
within the meaning of Section 856(d) of the Internal Revenue Code, Manager hereby agrees to enter into an amendment to this Agreement as proposed by Tenant modifying such terms in such a way as to cause rent under the Lease to so qualify as
“rent from real property” in the reasonable opinion of Tenant and its counsel; provided however, no such modifications shall affect the amount of Management Fees or the practical realization of the rights and benefits of the
Manager hereunder. 
 6.04 Exclusion. Manager represents and warrants to Tenant that neither Manager nor any of its
owners, officers, directors, managers, or employees have incurred an Exclusion, and to Manager’s knowledge, there are no pending or threatened governmental investigations that may lead to such Exclusion. Manager agrees to notify Tenant of the
commencement of any such Exclusion or investigation within seven (7) business days of Manager’s first learning of it. Tenant shall have the right to terminate this Agreement 

  
 - 18 -

 
upon learning of any such investigation which may result, with reasonable probability, in Manager’s Exclusion, after giving Manager not less than sixty (60) days prior written notice of
such election. Manager agrees to notify Tenant of the status of any such investigation. In the event of Manager’s Exclusion, Tenant shall have the right to terminate this Agreement effective as of the earlier to occur of the following:
(i) sixty (60) days after notice from Tenant of such termination or (ii) the date on which Tenant shall enter into an agreement with a replacement Manager. In the event Tenant shall give notice to Manager following Manager’s
Exclusion under this Section 6.04, Tenant agrees to use its best efforts in good faith to enter into an agreement with a replacement Manager as soon as possible following Tenant’s notice. Manager agrees to indemnify Tenant and save it
harmless from any penalty, loss, cost or damage Tenant may incur as a result of Manager’s Exclusion. 
  

	7.	INDEMNIFICATION. 

7.01 Indemnification by Tenant. Subject to the limitations set forth in this Article 7, Tenant agrees to indemnify, save,
pay, insure, defend and hold harmless Manager from and after the Effective Date against and with respect to any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest,
penalties, and reasonable attorneys’ fees and expenses, costs of litigation and costs of investigation (but not including any adjustments or credits expressly provided for in this Agreement) (together referred to as “Manager
Losses”): 
 (a) resulting from any breach of a representation or warranty contained in Article 5 of this Agreement; 

(b) resulting from gross negligence or willful misconduct of Tenant in exercising its duties and responsibilities hereunder; 

(c) Tenant’s uncured breach of this Agreement; 
 (d) arising out of or resulting from the ownership, operation, use or control of the Facility at any time during the Term of this Agreement, including without limitation, any and all liabilities which
relate to events occurring during the Term of this Agreement, except for those caused by or arising out of the willful act or omission of Manager and except to the extent subject to Manager’s indemnity of Tenant provided in Section 7.02
below; or 
 (e) arising out of or resulting from any claim asserted by or on behalf of any Facility Employee for any act or omission occurring
at any time during the Term of this Agreement, except for those caused by or arising out of the willful act or omission of Manager and except to the extent subject to Manager’s indemnity of Tenant provided in Section 7.02 below.

 7.02 Indemnification by Manager. Subject to the limitations set forth in this Article 7, Manager hereby agrees
to indemnify, save, pay, insure, defend and hold harmless Tenant at all times from and after the Effective Date against and with respect to any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and
deficiencies, including interest, penalties, and reasonable attorneys’ fees and expenses, costs of litigation and costs of investigation (but not including any adjustments or credits expressly provided for in this Agreement) (“Tenant
Losses”): 
 (a) resulting from any breach of a representation or warranty contained in Article 6 of this Agreement; 

  
 - 19 -

 (b) resulting from gross negligence or willful misconduct of Manager in exercising its duties and
responsibilities hereunder; or 
 (c) Manager’s uncured breach of this Agreement, provided such breach is curable by Manager but is not
cured by Manager within the applicable time frames set forth for such cure in this Agreement. 
  

	8.	MISCELLANEOUS. 

8.01 No Third Party Beneficiaries. Any provision hereof to the contrary notwithstanding, nothing in this Agreement is
intended, nor shall it be deemed, to confer upon any Person other than the parties hereto and their respective successors and assigns any rights or remedies under or by reason of this Agreement. 

8.02 Binding Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns, including any representative appointed to administer or liquidate their respective estates in any way whatsoever. 
 8.03 Assignment. Neither of the parties hereto may assign any of its rights or obligations hereunder without the prior written consent of the other party hereto, which consent shall not be
wrongfully withheld, conditioned or delayed, except this Agreement may be assigned to either a lender at the Tenant’s request or to a buyer as part of a Facility sale. 
 8.04 Subordination. This Agreement shall be subordinate to any mortgage, deed of trust, master lease, or ground lease affecting the Facility. Manager shall promptly within fifteen
(15) days enter into agreements reasonably requested by any holder of any mortgage or deed of trust or the lessor under any master lease or ground lease evidencing such subordination. 

8.05 Entire Agreement; Modification. This Agreement, together with the exhibits and schedules hereto and the Pooling
Agreement, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous communications, agreements and understandings with respect to the subject matter hereof,
express or implied, oral or written, all of which are merged herein. 
 8.06 Costs. Except as expressly provided
herein, each party hereto shall bear its own costs, including counsel fees and accounting fees, incurred in connection with the negotiation, preparation and execution of this Agreement, and all matters incident thereto. In any action or proceeding
to enforce any of the provisions of this Agreement, the 

  
 - 20 -

 
unsuccessful party to such proceeding, as determined by the court or arbitrator in any final judgment or decree, shall pay to the successful party or parties all costs, expenses, and reasonable
attorneys’ fees and expenses incurred by the successful party or parties, and if the successful party recovers a judgment, such costs, expenses and fees shall be included in and as a part of such judgment. 

8.07 Interpretation. The parties hereto acknowledge and agree that this Agreement has been negotiated at arm’s length
and between parties equally sophisticated and knowledgeable in the matters dealt with in this Agreement, and that each party has been advised by counsel of its choosing with respect hereto. Accordingly, any rule of law or legal decision that would
require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is hereby waived. The terms of this Agreement shall be interpreted in a reasonable manner in order to affect the intent of the
parties as set forth herein. 
 8.08 Severability. Except as expressly provided to the contrary herein, each
Article, Section, term and provision of this Agreement, and any portion thereof, shall be considered severable and if for any reason any such portion of this Agreement is held to be invalid, contrary to, or in conflict with any applicable present or
future law or regulation in a final, unappealable ruling issued by any court, agency or tribunal with competent jurisdiction, that ruling shall not impair the operation of, or have any other effect upon, such other portions of this Agreement as may
remain otherwise intelligible, which shall continue to be given full force and effect and binding upon the parties hereto, although any portion held to be invalid shall be deemed not to be part of this Agreement. 

8.09 Waiver of Obligations. Neither party shall be deemed to have waived or impaired any right, power, or option reserved by
this Agreement (including, without limitation, its right to demand exact compliance with every term, condition and covenant herein) by virtue of (i) any custom of the parties at variance with the terms hereof; (ii) any failure by such
party to demand strict compliance with this Agreement; or (iii) any waiver, forbearance, delay, failure or omission to exercise any right, power or option. No failure, refusal or neglect to exercise any right under this Agreement or to insist
upon full compliance by the other parties hereto with their obligations hereunder shall constitute a waiver of any provision of this Agreement. 
 8.10 Counterparts and Execution. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original Agreement for all purposes, and all of which when taken
together shall constitute one Agreement among each of the parties hereto, notwithstanding that all of the parties are not signatories to the original or the same counterpart. 
 8.11 Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its
right to use any or all other remedies. Such rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. 

  
 - 21 -

 8.12 Notices. Any notice called for hereunder shall be in writing and shall be
deemed properly given if sent both by e-mail and one of the following methods of delivery: (i) certified mail, return receipt requested, (ii) personal delivery, or (iii) dispatch by any form of private or governmental express mail or
delivery service providing receipted delivery, to the following addresses or to such other address as either party may designate by notice in accordance with this Section: 
 If to Tenant: 
 c/o CNL Healthcare Trust, Inc. 

Attn: Holly J. Greer, SVP and General Counsel and Joseph T. Johnson, SVP and Chief Financial Officer 

450 South Orange Avenue 
 Orlando, FL 32801 
 Holly.Greer@cnl.com 

Joseph.Johnson@cnl.com 
 With a copy to: 
 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

 Attention: William T. Dymond, Jr., Esq. 
 215 N. Eola Drive 
 Orlando, FL 32801 

William.Dymond@lowndes-law.com 
 If to Manager: 
 c/o Provision Living, LLC 

Todd E. Spittal, President 
 1630 Des Peres Road, Suite 310 
 St. Louis, MO 63131 

Telephone: 314-238-3821 
 Cell: 314-452-9767 
 E-mail: tspittal@provisionliving.com 

  
 - 22 -

 With a copy to: 
 Baker Donelson Bearman Caldwell & Berkowitz, PC 
 1800 Republic
Centre 
 633 Chestnut St. 
 Chattanooga, TN 37450 
 Attention: Kenneth C. Beckman 

Telephone: (423) 209-4205 
 Facsimile: (423) 752-9519 
 E-mail: kbeckman@bakerdonelson.com 

Notice shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a facsimile
transmission confirmation, (iii) the date reflected on a signed delivery receipt, or (iv) two (2) Business Days following tender of delivery or dispatch by express mail or delivery service. 

8.13 Survival. All representations, warranties, indemnifications, covenants and undertakings set forth herein shall survive
the Effective Date and shall remain binding on the parties hereto. 
 8.14 Approval of Tenant; Agreement of
Parties. Unless otherwise specifically provided, (i) any approval to be given by Tenant hereunder must be in writing to be effective and may be granted or withheld in Tenant’s sole and absolute discretion, and (ii) any matter
to be agreed to by the parties must be in writing to be effective and the decision whether or not to enter into such agreement will be in the parties’ sole and absolute discretion. 

8.15 Governing Law. All issues relating to this Agreement and its formation, performance and enforcement shall be governed
by and construed in accordance with the substantive laws of the State of Iowa in the United States of America without reference to the rules governing conflict of laws. 
 8.16 HIPAA Compliance. The parties agree that the services provided under this Agreement will comply in all material respects with all federal and state-mandated regulations, rules, or
orders applicable to the services provided herein, including but not limited to regulations promulgated under Title II, Subtitle F of the Health Insurance Portability and Accountability Act (Public Law 104-91) (“HIPAA”). 

8.17 Additional Reports. In connection with Tenant’s responsibility to maintain effective internal controls over
financial reporting and the Tenant’s requirements for complying with the Sarbanes Oxley Act of 2002, Manager hereby agrees to provide, as an Operating Expense, access and reasonable assistance as may be requested by Tenant that will allow
Tenant to conduct activities necessary to satisfy its responsibilities, as previously outlined, including, without limitation, the activities stipulated by the Public Company Accounting Oversight Board in its 2004-1, or other similarly promulgated
guidance by other regulatory agencies. Manager hereby agrees to provide, at Tenant’s request and as an Operating Expense, (i) evidence of Manager’s documented policies 

  
 - 23 -

 
regarding “whistleblower” procedures and regarding the reporting of fraud or misstatements involving Facility financial reporting, and (ii) access for the Tenant to conduct such
procedures as Tenant reasonably considers necessary to make a determination that Manager has maintained an effective system of internal controls over financial reporting. In addition to the foregoing, Manager shall provide Tenant with access to the
Books and Records of the Facility in order to perform miscellaneous other internal audit procedures as deemed reasonably appropriate by Tenant. Notwithstanding the other terms, covenants and conditions of this Section 8.17, the parties
acknowledge and agree that Manager shall have no responsibility or obligation with regard to Tenant’s obligations stipulated by the Public Company Accounting Oversight Board or under the Sarbanes Oxley Act of 2002, except to comply with
requests which may be made by Tenant under this Section 8.17. Notwithstanding the other terms, covenants and conditions of this Agreement, if Manager shall be required to incur a cost in excess of Five Thousand and No/100 Dollars ($5,000) in
any calendar year to comply with its obligations under this Section 8.17, all such costs in excess of Five Thousand and No/100 Dollars ($5,000) shall be disregarded as an Operating Expense in calculating NOI for purposes of calculating the
Incentive Management Fee and Subordinated Base Management Fee. 

  
 - 24 -

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

			
	TENANT:
	
	WEBSTER CITY IA ASSISTED LIVING TENANT, LLC, a Delaware limited liability company
	
	 /s/    Kevin
Maddron        

	By: Kevin Maddron
	Its: Senior Vice President
	
	MANAGER:
	
	PROVISION LIVING, LLC, a Missouri limited liability company
		
	By:	 	PROVISION LIVING MANAGEMENT, INC., its Manager
	
	 /s/    Todd E.
Spittal        

	By: Todd E. Spittal
	Its: President

  
 - 25 -Lease Agreement

 Exhibit 10.4 
 WINDSOR MANOR OF WEBSTER CITY 
 WEBSTER CITY, IOWA 

LEASE AGREEMENT 
 DATED AS OF AUGUST 31, 2012 
 BY AND BETWEEN 

WEBSTER CITY IA ASSISTED LIVING OWNER, LLC, 
 A DELAWARE LIMITED LIABILITY COMPANY, 
 AS LANDLORD, 

AND 

WEBSTER CITY IA ASSISTED LIVING TENANT, LLC, 
 A DELAWARE LIMITED LIABILITY COMPANY, 
 AS TENANT 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS
	  	 	1	  
		
	 ARTICLE 2 LEASED PROPERTY AND TERM
	  	 	12	  
			
	 2.1
	  	 Leased Property
	  	 	12	  
	 2.2
	  	 Condition of Leased Property
	  	 	13	  
	 2.3
	  	 Fixed Term
	  	 	14	  
	 2.4
	  	 Renewal Terms
	  	 	14	  
	 2.5
	  	 Early Termination
	  	 	14	  
		
	 ARTICLE 3 RENT
	  	 	14	  
			
	 3.1
	  	 Rent
	  	 	14	  
	 3.2
	  	 Confirmation of Percentage Rent
	  	 	17	  
	 3.3
	  	 Additional Charges
	  	 	18	  
	 3.4
	  	 Payment of Impositions
	  	 	18	  
	 3.5
	  	 [INTENTIONALLY DELETED]
	  	 	19	  
	 3.6
	  	 Net Lease
	  	 	19	  
		
	 ARTICLE 4 USE OF THE LEASED PROPERTY
	  	 	21	  
			
	 4.1
	  	 Permitted Use
	  	 	21	  
	 4.2
	  	 Compliance with Legal/Insurance Requirements, Etc.
	  	 	22	  
	 4.3
	  	 Environmental Matters
	  	 	22	  
		
	 ARTICLE 5 REPAIRS, MAINTENANCE AND REPLACEMENTS
	  	 	23	  
			
	 5.1
	  	 Repairs and Maintenance Costs Which Are Expensed
	  	 	23	  
	 5.2
	  	 Capital Renewals Reserve
	  	 	24	  
	 5.3
	  	 Capital Expenditures
	  	 	25	  
	 5.4
	  	 Ownership of Replacements
	  	 	26	  
	 5.5
	  	 Tenant’s Personal Property
	  	 	26	  
	 5.6
	  	 Yield Up
	  	 	26	  
	 5.7
	  	 Management Agreement
	  	 	27	  
		
	 ARTICLE 6 IMPROVEMENTS, ETC.
	  	 	27	  
			
	 6.1
	  	 Improvements to the Leased Property
	  	 	27	  
	 6.2
	  	 Salvage
	  	 	27	  
	 6.3
	  	 Equipment Leases
	  	 	27	  
		
	 ARTICLE 7 LIENS
	  	 	28	  
		
	 ARTICLE 8 PERMITTED CONTESTS
	  	 	28	  
		
	 ARTICLE 9 INSURANCE
	  	 	29	  
			
	 9.1
	  	 Insurance
	  	 	29	  
	 9.2
	  	 General Insurance Provisions
	  	 	31	  

							
	 9.3
	  	Costs and Expenses	  	 	31	  
	 9.4
	  	Waiver of Subrogation	  	 	32	  
	 9.5
	  	Indemnification of Landlord	  	 	32	  
		
	 ARTICLE 10 DAMAGE, REPAIR AND CONDEMNATION
	  	 	32	  
			
	 10.1
	  	Damage and Repair	  	 	32	  
	 10.2
	  	Condemnation	  	 	33	  
	 10.3
	  	Disbursement of Award	  	 	34	  
		
	 ARTICLE 11 MORTGAGES, ETC.
	  	 	34	  
			
	 11.1
	  	Mortgages	  	 	34	  
	 11.2
	  	No Covenants, Conditions or Restrictions	  	 	35	  
	 11.3
	  	Liens; Credit	  	 	35	  
	 11.4
	  	Amendments Requested by Mortgagee	  	 	35	  
		
	 ARTICLE 12 DEFAULTS AND REMEDIES
	  	 	35	  
			
	 12.1
	  	Events of Default	  	 	35	  
	 12.2
	  	Remedies	  	 	37	  
	 12.3
	  	Waiver of Jury Trial	  	 	38	  
	 12.4
	  	Application of Funds	  	 	38	  
	 12.5
	  	Landlord’s Right to Cure Tenant’s Default	  	 	38	  
	 12.6
	  	Good Faith Dispute	  	 	39	  
		
	 ARTICLE 13 HOLDING OVER
	  	 	39	  
		
	 ARTICLE 14 LANDLORD’S NOTICE OBLIGATIONS; LANDLORD DEFAULT
	  	 	39	  
			
	 14.1
	  	Landlord Notice Obligation	  	 	39	  
	 14.2
	  	Landlord’s Default	  	 	39	  
	 14.3
	  	Tenant’s Right to Cure	  	 	40	  
		
	 ARTICLE 15 TRANSFERS BY LANDLORD
	  	 	40	  
			
	 15.1
	  	Transfer of Leased Property	  	 	40	  
		
	 ARTICLE 16 SUBLETTING AND ASSIGNMENT
	  	 	41	  
			
	 16.1
	  	Subletting and Assignment	  	 	41	  
	 16.2
	  	Required Sublease Provisions	  	 	41	  
	 16.3
	  	Permitted Sublease and Assignment	  	 	42	  
	 16.4
	  	Sublease Limitation	  	 	42	  
		
	 ARTICLE 17 ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS
	  	 	43	  
			
	 17.1
	  	Estoppel Certificates	  	 	43	  
	 17.2
	  	Accounting, Distributions and Annual Reconciliation	  	 	43	  
	 17.3
	  	Books and Records	  	 	44	  
	 17.4
	  	Accounts, Expenditures	  	 	44	  
		
	 ARTICLE 18 LANDLORD’S RIGHT TO INSPECT
	  	 	44	  

							
	 ARTICLE 19 MISCELLANEOUS
	  	 	45	  
			
	 19.1
	  	Limitation on Payment of Rent	  	 	45	  
	 19.2
	  	No Waiver	  	 	45	  
	 19.3
	  	Remedies Cumulative	  	 	45	  
	 19.4
	  	Severability	  	 	45	  
	 19.5
	  	Acceptance of Surrender	  	 	45	  
	 19.6
	  	No Merger of Title	  	 	46	  
	 19.7
	  	Conveyance by Landlord	  	 	46	  
	 19.8
	  	Quiet Enjoyment	  	 	46	  
	 19.9
	  	Memorandum of Lease	  	 	46	  
	 19.10
	  	Notices	  	 	46	  
	 19.11
	  	Construction; Nonrecourse	  	 	48	  
	 19.12
	  	Counterparts; Headings	  	 	48	  
	 19.13
	  	Applicable Law, Etc.	  	 	48	  
	 19.14
	  	Right to Make Agreement	  	 	49	  
	 19.15
	  	Disclosure of Information	  	 	49	  

 EXHIBITS: 
  

					
	Exhibit A	 	-	 	Minimum Rent
			
	Exhibit B	 	-	 	Legal Description of the Land
			
	Exhibit C	 	-	 	Percentage Rent Provisions
			
	Exhibit D	 	-	 	Tenant’s Personal Property

 LEASE AGREEMENT 

This LEASE AGREEMENT is entered into as of August 31, 2012, by and between WEBSTER CITY IA ASSISTED LIVING OWNER, LLC,
a Delaware limited liability company, as landlord (“Landlord”), and WEBSTER CITY IA ASSISTED LIVING TENANT, LLC, a Delaware limited liability company, as tenant (“Tenant”). 

W I T N E S S ET H: 

WHEREAS, Landlord is the owner of the Leased Property (as defined in Section 2.1); and 

WHEREAS, Landlord has agreed to lease the Leased Property to Tenant and Tenant has agreed to lease the Leased Property from Landlord, all
subject to and upon the terms and conditions herein set forth. 
 NOW, THEREFORE, in consideration of the mutual covenants
herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

ARTICLE 1 

DEFINITIONS 
 For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, (a) the terms defined in this Article shall have the meanings assigned to them in
this Article and include the plural as well as the singular, (b) all accounting terms not otherwise defined herein shall have the meanings assigned to them in accordance with GAAP, (c) all references in this Agreement to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Agreement, and (iv) the words “herein,” “hereof,” “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision. 

“Accessibility Laws” shall mean all applicable laws, statutes, regulations, rules, ordinances, codes, licenses,
permits and orders, from time to time in existence, of all courts of competent jurisdiction and Government Agencies, and all applicable judicial and administrative and regulatory decrees, judgments and orders, including common law rulings and
determinations, relating to accessibility for the disabled or handicapped, including, but not limited to, any applicable provisions of The Architectural Barriers Act of 1968, The Rehabilitation Act of 1973, The Fair Housing Act of 1988, The
Americans With Disabilities Act, the accessibility code(s), if any, of the State in which the Leased Property is located, and all regulations and guidelines promulgated under any all of the foregoing, as the same may be amended from time to time.

  
 1 

 “Accounting Period” shall mean each of twelve (12) Accounting
Periods of one (1) calendar month occurring each Fiscal Year. 
 “Accounting Period Statement”
shall have the meaning given such term in Section 17.2(a). 
 “Additional Charges” shall
have the meaning given such term in Section 3.3. 
 “Adjustment Date” shall have the meaning
given such term in Section 5.2(b). 
 “Affiliate” shall mean, with respect to any Person,
(i) any Person directly or indirectly Controlling, Controlled by or under common Control with any such Person, (ii) in the case of any such Person which is a partnership, any partner in such partnership, (iii) in the case of any such
Person which is a limited liability company, any member of such company, (iv) in the case of any such Person which is a corporation, any officer, director or stockholder of such corporation, (v) any other Person which is a Parent, a
Subsidiary, or a Subsidiary of a Parent with respect to such Person or to one or more of the Persons referred to in the preceding clauses (i) through (iv), (vi) any other Person who is an officer, director, trustee or employee of, or
partner in, such Person or any Person referred to in the preceding clauses (i) through (v) and (vii) any other Person who is a member of, or trustee of any trust for the benefit of, the Immediate Family of such Person or of any Person
referred to in the preceding clauses (i) through (vi); provided, however, a Person shall not be deemed to be an Affiliate solely by virtue of the ownership of shares of stock registered under the Securities Act of 1934, as
amended, unless such Person, as holder of such stock, is required to file a Schedule 13-D, pursuant to Section 13(d) of such Act and Rule 13-d-1 promulgated thereunder. 
 “Agreement” shall mean this Lease Agreement, including all Exhibits hereto, as it and they may be amended from time to time as herein provided. 

“Annual Operating Statement” shall have the meaning given such term in Section 17.2(b). 

“Applicable Laws” shall mean all applicable laws, statutes, regulations, rules, ordinances, codes, licenses,
permits and orders, from time to time in existence, of all courts of competent jurisdiction and Government Agencies, and all applicable judicial and administrative and regulatory decrees, judgments and orders, including common law rulings and
determinations, relating to (i) injury to, or the protection of, real or personal property, (ii) human health and safety (except those requirements which, by definition, are solely the responsibility of employers), (iii) the
Environment, including, without limitation, all valid and lawful requirements of courts and other Government Agencies pertaining to reporting, licensing, permitting, investigation, remediation and removal of underground improvements (including,
without limitation, treatment or storage tanks, or water, gas or oil wells), or emissions, discharges, releases or threatened releases of Hazardous Materials, chemical substances, pesticides, petroleum or petroleum products, pollutants, contaminants
or hazardous or toxic substances, materials or wastes whether solid, liquid or gaseous in nature, into the Environment, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials, underground improvements (including, without 

  
 2 

 
limitation, treatment or storage tanks, or water, gas or oil wells), or pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, liquid or gaseous in nature,
(iv) Accessibility Laws, (v) dementia care/assisted facility licensure or (vi) participation in Medicare or Medicaid programs. 
 “Award” shall mean all compensation, sums or other value awarded, paid or received by virtue of a total or partial Condemnation of the Leased Property (after deduction of all
reasonable legal fees and other reasonable costs and expenses, including, without limitation, expert witness fees, incurred by Landlord, in connection with obtaining any such award). 

“Business” shall mean the operation of the Facility and other activities related thereto conducted on the Land.

 “Business Day” shall mean any day other than Saturday, Sunday, or any other day on which federal
banking institutions are authorized by law or executive action to close. 
 “Building Estimate” shall
have the meaning given such term in Section 5.3(a). 
 “Capital Expenditure” shall mean the
expenses necessary for non-routine, major repairs, alterations, improvements, renewals, replacements, and additions to the Facility including, without limitation, to the structure, the exterior facade (excluding painting) and all of the mechanical,
electrical, heating, ventilating, air conditioning, plumbing or vertical transportation elements of the Facility, together with all other expenditures which are classified as “capital expenditures” under generally accepted accounting
principles. Capital Expenditures shall not include Routine Capital Expenditures. 
 “Capital Renewals
Payment” shall have the meaning given such term in Section 5.2(b). 
 “Capital Renewals
Reserve” shall have the meaning given such term in Section 5.2(a). For clarity, “Capital Renewals Reserve” shall be construed to be synonymous with the term “FF&E Reserve” as used in the
Management Agreement in effect as of the date of this Agreement. To the extent of any inconsistency with respect thereto, the definition and use of the term in the Management Agreement shall control. 

“Capital Reserve Budget” shall have the meaning given such term in Section 5.2(c). 

“Claims” shall have the meaning given such term in Article 8. 

“Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations
promulgated thereunder, each as amended from time to time. 
 “Commencement Date” shall mean the date of
this Agreement. 
 “Compliance Threshold Provisions” shall have the meaning given such term in
Section 3.1(a). 

  
 3 

 “Condemnation” shall mean (a) the exercise of any governmental
power with respect to the Leased Property, whether by legal proceedings or otherwise, by a Condemnor of its power of condemnation, (b) a voluntary sale or transfer of the Leased Property by Landlord to any Condemnor, either under threat of
condemnation or while legal proceedings for condemnation are pending, or (c) a taking or voluntary conveyance of all or part of the Leased Property, or any interest therein, or right accruing thereto or use thereof, as the result or in
settlement of any Condemnation or other eminent domain proceeding affecting the Leased Property, whether or not the same shall have actually been commenced. 
 “Condemnor” shall mean any public or quasi-public authority, or Person having the power of Condemnation. 
 “Controlling Interest” shall mean (a) as to a corporation the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable
to the shares of the Entity (through ownership of such shares or by contract), and (b) as to an Entity not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the
Entity. 
 “CC&R’s” shall have the meaning given such term in Section 11.2(a).

 “Date of Taking” shall mean the date the Condemnor has the right to possession of the Leased
Property, or any portion thereof, in connection with a Condemnation. 
 “Default” shall mean any event
or condition existing which with the giving of notice and/or lapse of time would ripen into an Event of Default. 

“Emergency Requirements” shall mean any of the following events or circumstances: (a) an emergency
threatening imminent damage to the Facility, or the life or property of its residents, patients, invitees or employees; or (b) a Legal Requirement, the violation (or continued violation) of which would subject Tenant, Manager and/or Landlord to
the imminent threat of civil or criminal liability. 
 “Entity” shall mean any corporation, general or
limited partnership, limited liability company, limited liability partnership, stock company or association, joint venture, association, company, trust, bank, trust company, land trust, business trust, cooperative, any government or agency or
political subdivision thereof or any other association or entity. 
 “Environment” shall mean soil,
surface waters, ground waters, land, streams, sediments, surface or subsurface strata and ambient air. 

“Environmental Laws” shall have the meaning given such term in Section 4.3(a). 

“Escrow Agent” shall have the meaning given such term in Section 10.3. 

“Event of Default” shall have the meaning given such term in Section 12.1. 

  
 4 

 “Excess Rent” shall have the meaning given such term in
Section 3.1(a). 
 “Facility” shall mean the assisted living facility located on the Land.

 “First Tier Gross Revenues Break Point” shall mean the amount of Gross Revenues for the applicable
Lease Year corresponding to such term as set forth on Exhibit C attached hereto. 
 “First Tier Gross
Revenues Percentage” shall mean the percentage corresponding to such term as set forth on Exhibit C. 

“Fiscal Year” shall mean each fiscal year of Manager, each such fiscal year to consist of twelve
(12) Accounting Periods, and which, as of the Commencement Date, commences at midnight on January 1 and ends at midnight on December 31 of each calendar year. If Manager shall, for a bona fide business reason, change its Fiscal Year
during the Term, appropriate adjustments, if any, shall be made with respect to the timing of certain accounting and reporting requirements of this Agreement; provided, however, that, in no event shall any such change or adjustment increase or
reduce any monetary obligation under this Agreement. 
 “Fixed Term” shall have the meaning given such
term in Section 2.3. 
 “Fixtures” shall have the meaning given such term in
Section 2.1(e). 
 “Force Majeure Event” means any circumstance which is not within the
reasonable control of either party hereto, caused by any of the following: strikes, lockouts; acts of God; civil commotion; fire or any other casualty; governmental action; or other similar cause or circumstance which is not in the reasonable
control of either party hereto. Neither lack of financing nor general economic and/or market conditions or factors is a Force Majeure Event. 
 “Fourth Tier Gross Revenues Percentage” shall mean the percentage corresponding to such term as set forth on Exhibit C. 

“GAAP” shall mean generally accepted accounting principles consistently applied. 

“Government Agencies” shall mean any court, agency, authority, board (including, without limitation,
environmental protection, planning and zoning), bureau, commission, department, office or instrumentality of any nature whatsoever of any governmental or quasi-governmental unit of the United States or the State or any County or any political
subdivision of any of the foregoing, whether now or hereafter in existence, having jurisdiction over Tenant or the Leased Property or any portion thereof, or the Business operated thereon. 

“Gross Income Tests” shall have the meaning given such term in Section 3.1(a). 

“Gross Revenues” shall mean, for a given period or interval, all gross revenues and receipts of every kind
derived by or for the benefit of Tenant or its Affiliated Persons from operating or causing the operation of the Leased Property and all parts thereof, including, but not limited to: gross revenues from both cash and credit transactions (after
reasonable deductions for bad debts and discounts for prompt or cash payments and refunds) from rental or subleasing of 

  
 5 

 
every kind; entrance fees, fees for health care and personal care services, license, lease and concession fees and rentals, off premises catering, if any, and parking (not including gross
receipts of licensees, lessees and concessionaires); gross revenues from vending machines; health club membership fees; food and beverage sales; wholesale and retail sales of merchandise (other than proceeds from the sale of furnishings, fixtures
and equipment no longer necessary to the operation of the Facility, which shall be deposited in the Capital Renewals Reserve) and service charges, to the extent not distributed to employees at the Facility as gratuities, interest income except as
specifically provided below, community fees, and deposits forfeited, all as determined in accordance with GAAP on an accrual basis; provided, however, that Gross Revenues shall not include the following: gratuities to Facility employees; federal,
state or municipal excise, sales, occupancy, use or similar taxes collected directly from residents or included as part of the sales price of any goods or services; insurance proceeds (except for business interruption insurance proceeds); any
proceeds from any sale of the Leased Property or from the refinancing of any debt encumbering the Leased Property; proceeds from the disposition of furnishings, fixture and equipment no longer necessary for the operation of the Facility; and
interest which accrues on amounts deposited in the Capital Renewals Reserve. 
 “Hazardous Materials”
shall have the meaning given such term in Section 4.3(a). 
 “Immediate Family” shall mean,
with respect to any individual, such individual’s spouse, parents, brothers, sisters, children (natural or adopted), stepchildren, grandchildren, grandparents, parents-in-law, brothers-in-law, sisters-in-law, nephews and nieces. 

“Improvements” shall have the meaning given such term in Section 2.1(b) of this Agreement.

 “Impositions” shall mean collectively, all taxes (including, without limitation, all taxes imposed
under the laws of the State, as such laws may be amended from time to time, and all ad valorem, sales and use, single business, gross receipts, transaction privilege, rent or similar taxes as the same relate to or are imposed upon Landlord, Tenant
or the Business), assessments (including, without limitation, all assessments for public improvements or benefit, whether or not commenced or completed prior to the date hereof), water, sewer or other rents and charges, excises, tax levies, fees
(including, without limitation, license, permit, inspection, authorization and similar fees), and all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in
respect of the Leased Property or the Business (including all interest and penalties thereon due to any failure in payment by Tenant), which at any time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect of
or be a lien upon (a) Landlord’s interest in the Leased Property, (b) the Leased Property or any part thereof or any rent therefrom or any estate, right, title or interest therein, or (c) any occupancy, operation, use or
possession of, or sales from, or activity conducted on, or in connection with the Leased Property or the leasing or use of the Leased Property or any part thereof by Tenant; provided, however, that nothing contained herein shall be construed to
require Tenant to pay (i) any tax based on net income, net worth or capital imposed on Landlord, (ii) any net revenue tax of Landlord, (iii) any transfer fee or other tax imposed with respect to the sale, exchange or other disposition
by Landlord of the Leased Property or the proceeds thereof, (iv) any single business, gross receipts tax (from any source other than the rent received by Landlord from Tenant), or similar taxes as the same relate to or

  
 6 

 
are imposed upon Landlord, except to the extent that any tax, assessment, tax levy or charge that would otherwise be an Imposition under this definition which is in effect at any time during the
Term hereof is totally or partially repealed, and a tax, assessment, tax levy or charge set forth in clause (i) or (ii) preceding is levied, assessed or imposed expressly in lieu thereof, (v) any interest or
penalties imposed on Landlord as a result of the failure of Landlord to file any return or report timely and in the form prescribed by law or to pay any tax or imposition, except to the extent such failure is a result of a breach by Tenant of its
obligations pursuant to Section 3.4, (vi) any Impositions imposed on Landlord that are a result of Landlord not being considered a “United States person” as defined in Section 7701(a)(30) of the Code, (vii) any
Impositions that are enacted or adopted by their express terms as a substitute for any tax that would not have been payable by Tenant pursuant to the terms of this Agreement, or (viii) any Impositions imposed as a result of a breach of covenant
or representation by Landlord in any agreement entered into by Landlord governing Landlord’s conduct or operation or as a result of the negligence or willful misconduct of Landlord. 

“Indebtedness” shall mean all obligations, contingent or otherwise, which in accordance with GAAP should be
reflected on the obligor’s balance sheet as liabilities. 
 “Index” shall mean the Consumer Price
Index: All Urban Consumers, (1982-84=100), All Items, U.S. City Average (CPI-U), as published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or otherwise revised during the Term, such other
government index or computation with which it is replaced shall be used. If the Index is discontinued with no successor Index, another similar index with an appropriate conversion factor shall be substituted. If the Index is changed so that a base
year other than 1982-84 is used, the Index shall be converted in accordance with the conversion factor published by the Bureau of Labor Statistics. 
 “Initial Investment” shall mean an amount equal to Three Million, One Hundred Sixty-Three Thousand and no/100 Dollars ($3,163,000.00). 

“Institutional Lender” shall mean a foreign or domestic commercial bank, trust company, savings bank, savings and
loan association, insurance company, real estate investment trust, investment bank, pension trust, pension plan or pension fund, a public or privately-held fund engaged in real estate and/or corporate lending, any trustee of any trust or REMIC or
other securitization vehicle, or any other financial institution commonly known as an institutional lender (or any Affiliate of any of the foregoing). 
 “Insurance Requirements” shall mean all terms of any insurance policy required by this Agreement and all requirements of the issuer of any such policy and all orders, rules and
regulations and any other requirements of the National Board of Fire Underwriters (or any other body exercising similar functions) binding upon Landlord, Tenant or the Leased Property. 

  
 7 

 “Insurance Retention” shall have the meaning given such term in
Section 9.3(c). 
 “Intangible Property” shall mean (a) Permits (hereinafter defined)
and other approvals granted by any public body or by any private party pursuant to a recorded instrument, and (b) certificates, licenses, warranties and guarantees other than such permits, operating permits, certificates, licenses and approvals
which are to be held by, or transferred to, Tenant in order to permit Tenant to operate the Leased Property properly in accordance with the terms of this Agreement. 
 “Interest Rate” shall mean an annual rate of interest equal to, as of the date of determination, the per annum rate for ten (10) year U.S. Treasury Obligations as published in
the Wall Street Journal, plus two hundred (200) basis points. 
 “Inventories” shall mean all
inventories, as such term is customarily used and defined in its most broad and inclusive sense including, but not limited to, all inventories of food, beverages and other consumables held by Tenant for sale or use at or from the Leased Property or
the Facility, and soap, cleaning supplies, paper supplies, operating supplies, china, glassware, silver, linen, uniforms, building and maintenance supplies, spare parts and attic stock, medical supplies, drugs and all other such goods, wares and
merchandise held by Tenant for sale to or for consumption by residents or patients of the Leased Property or the Facility and all such other goods returned to or repossessed by Tenant. 

“Land” shall mean all tracts, pieces and parcels of land described on Exhibit B attached hereto.

 “Landlord” shall have the meaning given such term in the preamble to this Agreement. 

“Landlord Default” shall have the meaning given such term in Section 14.2. 

“Landlord Liens” shall mean liens on or against the Leased Property or any payment of Rent (a) which result
from any act of, or any claim against, Landlord or any owner (other than Tenant) of a direct or indirect interest in the Leased Property, or which result from any violation by Landlord of any terms of this Agreement, or (b) which result from
liens in favor of any taxing authority by reason of any tax owed by Landlord or any fee owner of a direct or indirect interest in the Leased Property; provided, however, that “Landlord Lien” shall not include any lien resulting from any
tax for which Tenant is obligated to pay or indemnify Landlord against until such time as Tenant shall have already paid to or on behalf of Landlord the tax or the required indemnity with respect to the same. 

“Lease Basis” shall mean Landlord’s Initial Investment in the Leased Property plus any additional costs or
expenses incurred by Landlord in connection with the Leased Property pursuant to this Agreement. 
 “Lease
Year” shall mean any Fiscal Year during the Term and any partial Fiscal Year at the beginning or end of the Term. 

  
 8 

 “Leased Intangible Property” shall mean all Intangible Property
owned by Landlord with respect to the Leased Property. 
 “Leased Personal Property” shall mean all
machinery, equipment, furniture, furnishings, moveable walls or partitions, computers, trade fixtures, linen, china, glassware, tableware, uniforms and similar items, located on or in the Land or Improvements, and all modifications, replacements,
alterations and additions to such property, except items, if any, included within the category of Fixtures. 

“Leased Property” shall have the meaning given such term in Section 2.1. 

“Legal Requirements” shall mean all federal, state, county, municipal and other governmental statutes, laws,
rules, orders, regulations, ordinances, judgments, decrees and injunctions affecting the Leased Property or the maintenance, construction, alteration or operation thereof, whether now or hereafter enacted or in existence, including, without
limitation, (a) all permits, licenses, authorizations, certificates and regulations necessary to operate the Leased Property for its Permitted Use, (b) all covenants, agreements, declarations, restrictions and encumbrances contained in any
instruments at any time in force affecting the Leased Property as of the date hereof, or to which Tenant has consented or required to be granted pursuant to Applicable Laws, including those which may (i) require material repairs, modifications
or alterations in or to the Leased Property, or (ii) in any way materially and adversely affect the use and enjoyment thereof, but excluding any requirements arising as a result of Landlord’s or any Affiliate of Landlord’s status as a
real estate investment trust and (c) Applicable Laws. 
 “Lien” shall mean any mortgage, security
interest, pledge, collateral assignment, or other encumbrance, lien or charge of any kind, or any transfer of property or assets for the purpose of subjecting the same to the payment of Indebtedness or performance of any other obligation in priority
to payment of its general creditors. 
 “Limitation Ratio” shall have the meaning given such term in
Section 3.1(a). 
 “Management Agreement” shall mean any agreement entered into between
Tenant and Manager with respect to the management and operation of the Leased Property, as the same may be amended from time to time. As of the date of this Agreement, the term “Management Agreement” shall mean that certain Management
Agreement, dated as of the date hereof, between Tenant and Provision Living, LLC, a Missouri limited liability company, including any amendments, restatements, supplements or modifications thereto or thereof in accordance with the terms thereof.

 “Manager” shall have the same meaning as defined in the Management Agreement. 

“Minimum Rent” shall mean, with respect to each Accounting Period, the sum set forth on Exhibit A
attached hereto, subject to adjustment pursuant to the terms of this Agreement. 

  
 9 

 “Minor Casualty” shall mean any fire or other casualty which results
in damage to the Facility and/or its contents, to the extent that the total cost (in Tenant’s reasonable judgment) of repairing and/or replacing of the damaged portion of the Facility to the same condition as existed previously does not exceed
the dollar amount and/or satisfy the condition of a Total Casualty hereunder or a “Major Casualty,” as set forth in the Management Agreement. 
 “Mortgage” shall mean any mortgage, deed of trust, or security document encumbering any or all of the Leased Property. 

“Mortgagee” shall mean the holder of any Mortgage. 

“Notice” shall mean a notice given in accordance with Section 19.10. 

“Operating Accounts” shall have the meaning given such term in Section 17.4(a). 

“Operating Year” shall mean a twelve (12) month period commencing at midnight on January 1 and ending
at 11:59 p.m. on December 31 of each calendar year during the term. 
 “Parent” shall mean, with
respect to any Person, any Person which directly, or indirectly through one or more Subsidiaries or Affiliates, (a) owns fifty-one percent (51%) or more of the voting or beneficial interest in, or (b) otherwise has the right or power
(whether by contract, through ownership of securities or otherwise) to control, such Person. 
 “Percentage
Rent” shall have the meaning given such term in Section 3.1(a). 
 “Period Revenues
Computation” shall have the meaning given such term Section 3.1(b). 
 “Permits”
means all licenses, permits and certificates used or useful in connection with the ownership, operation, use or occupancy of the Leased Property or the Facility, including, without limitation, business licenses, state and local health and
environmental department licenses, any other licenses required in connection with the operation of the Facility for assisted living, independent living and dementia care purposes, food service licenses, licenses to conduct business, certificates of
need and all such other permits, licenses and rights, obtained from any governmental, quasi-governmental or private person or entity whatsoever. 
 “Permitted Encumbrances” shall mean all rights, restrictions, and easements of record set forth on Schedule B to the applicable owner’s or leasehold title insurance policy
issued to Landlord on the date hereof, plus any other such encumbrances as may have been consented to in writing by Landlord from time to time. 
 “Permitted Use” shall have the meaning set forth in Section 4.1.1(a). 
 “Person” shall mean any individual or Entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so admits.

  
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 “Qualified Mortgage” shall have the meaning given such term in
Section 11.1(a). 
 “Qualified Mortgagee” shall mean any holder of a Qualified Mortgage.

 “Reimbursement Contracts” shall mean all third party reimbursement contracts for the Facility which
are now or hereafter in effect with respect to residents or patients qualifying for coverage under the same, including private insurance agreements, Medicare and Medicaid and any successor program or other similar reimbursement program and/or
private insurance agreements. 
 “REIT” shall have the meaning given such term in
Section 3.1(a). 
 “Re-letting Expenses” shall have the meaning given such term in
Section 12.2. 
 “Rent” shall mean, collectively, the Minimum Rent, Percentage Rent and
Additional Charges. 
 “Renewal Term” shall have the meaning given such term in Section 2.4.

 “Routine Capital Expenditures” shall mean certain routine, non-major expenditures which are
classified as “capital expenditures” under generally-accepted accounting principles, but which will be funded from the Capital Renewals Reserve (pursuant to Section 5.2, rather than pursuant to the provisions of
Section 5.3). Routine Capital Expenditures consist of the following types of expenditures: exterior and interior repainting; resurfacing building walls and floors; resurfacing parking areas; replacing folding walls; and miscellaneous
similar expenditures (all such types of expenditures to be in accordance with Manager’s policies as then generally implemented throughout the Manager’s system). 
 “SEC” shall mean the Securities and Exchange Commission. 

“Second Tier Gross Revenues Break Point” shall mean the amount of Gross Revenues for the applicable Lease Year
corresponding to such term as set forth on Exhibit C attached hereto. 
 “Second Tier Gross Revenues
Percentage” shall mean the percentage corresponding to such term as set forth on Exhibit C attached hereto. 
 “State” shall mean the State of Iowa. 

“Subsidiary” shall mean, with respect to any Person, any Entity in which such Person directly, or indirectly
through one or more Subsidiaries or Affiliates, (a) owns more than fifty percent (50%) of the voting or beneficial interest, or (b) which such Person otherwise has the right or power to control (whether by contract, through ownership
of securities or otherwise). 
 “Tenant” shall have the meaning given such term in the preamble to this
Agreement. 

  
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 “Tenant’s Personal Property” shall mean any specific item of
personal property listed on Exhibit D to this Agreement, or replacements for such items which hereafter are acquired by Tenant with its own funds after the Commencement Date and located at the Leased Property (but not including any
property purchased from the Capital Renewals Reserve established in Section 5.2. 
 “Term”
shall mean, collectively, the Fixed Term and the Renewal Terms, to the extent properly exercised pursuant to the provisions of Section 2.4, unless sooner terminated pursuant to the provisions of this Agreement. 

“Third Tier Gross Revenues Break Point” shall mean the amount of Gross Revenues for the applicable Lease Year
corresponding to such term as set forth on Exhibit C. 
 “Third Tier Gross Revenues
Percentage” shall mean the percentage corresponding to such term as set forth on Exhibit C attached hereto. 
 “Total Casualty” shall mean any fire or other casualty which results in damage to the Facility and its contents to the extent that the total cost of repairing and/or replacing the
damaged portion of the Facility to the same condition as existed previously would be greater than thirty percent (30%) of the then total replacement cost of the Facility or if the restoration will take longer than three hundred sixty
(360) days. 
 “Working Capital” shall mean funds that are used in the day-to-day operation of the
Business, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, amounts deposited in operating bank accounts, receivables, amounts deposited in payroll accounts, prepaid expenses and funds required to
maintain Inventories, less accounts payable and accrued current liabilities. 
 ARTICLE 2 

LEASED PROPERTY AND TERM 
 2.1 Leased Property. Upon and subject to the terms and conditions hereinafter set forth, Landlord leases to Tenant and Tenant leases from Landlord all of Landlord’s right, title and interest
in and to all of the following (collectively, the “Leased Property”): 
 (a) the Land; 

(b) all buildings, structures, other improvements and appurtenances of every kind including, but not limited to, the Facility, the
alleyways and connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site and off-site), parking garage and parking areas and roadways appurtenant to such buildings and structures presently situated upon the Land (collectively, the
“Improvements”); 
 (c) the Leased Personal Property; 

  
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 (d) all easements, rights and appurtenances relating to the Land and the Improvements;

 (e) all equipment, machinery, fixtures, and other items of property, now or hereafter permanently affixed to or incorporated
into the Leased Improvements, including, without limitation, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air-cooling
and air-conditioning systems and apparatus, sprinkler systems and fire and theft protection equipment, all of which, to the maximum extent permitted by law, are hereby deemed by the parties hereto to constitute real estate, together with all
replacements, modifications, alterations and additions thereto, but specifically excluding all items included within the category of Tenant’s Personal Property (collectively, the “Fixtures”); 

(f) all of the Leased Intangible Property; 
 (g) any and all leases of space (including any security deposits held by Tenant pursuant thereto) in the Leased Improvements to tenants thereof; and 

(h) any and all motor vehicles now owned or hereafter acquired by Landlord and used in connection with the operation of the Business.

 2.2 Condition of Leased Property. Tenant acknowledges receipt and delivery of possession of the Leased Property and
Tenant accepts and will accept the Leased Property in its “as is” condition, subject to the rights of parties in possession, the existing state of title, including all covenants, conditions, restrictions, reservations, mineral leases,
easements and other matters of record or that are visible or apparent on the Leased Property, all applicable Legal Requirements, the lien of any financing instruments, mortgages and deeds of trust permitted by the terms of this Agreement, and such
other matters which would be disclosed by an inspection of the Leased Property and the record title thereto or by an accurate survey thereof. TENANT REPRESENTS THAT IT HAS INSPECTED THE LEASED PROPERTY AND ALL OF THE FOREGOING AND HAS FOUND THE
CONDITION THEREOF SATISFACTORY AND IS NOT RELYING ON ANY REPRESENTATION OR WARRANTY OF LANDLORD OR LANDLORD’S AGENTS OR EMPLOYEES WITH RESPECT THERETO, EXCEPT AS EXPRESSLY SET FORTH HEREIN, AND TENANT WAIVES ANY CLAIM OR ACTION AGAINST LANDLORD
IN RESPECT OF THE CONDITION OF THE LEASED PROPERTY. LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE
OR PURPOSE OR OTHERWISE, AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY TENANT. To the maximum extent permitted by law, however, Landlord hereby assigns to Tenant
all of Landlord’s rights to proceed against any predecessor in title, contractors and materialmen for breaches of warranties or representations or for latent defects in the Leased Property. Landlord shall fully cooperate with Tenant in the
prosecution of any such claims, in Landlord’s or Tenant’s name, all at Tenant’s sole cost and expense. Tenant shall indemnify, defend, and hold harmless Landlord from and against any loss, cost, damage or liability (including
reasonable attorneys’ fees) incurred by Landlord in connection with such cooperation. 

  
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 2.3 Fixed Term. The initial term of this Agreement (the
“Fixed Term”) shall commence on the Commencement Date and shall expire on
December 31st of the fifth (5th) full calendar year following the Commencement Date, unless
sooner terminated in accordance with the provisions hereof. 
 2.4 Renewal Terms. Provided that no
Event of Default shall have occurred and be continuing, the Term of this Agreement shall automatically renew (each, a “Renewal Term”) for an additional (a) five (5) years with respect to the first (1st) Renewal Term, and (b) three (3) years with respect
to each Renewal Term thereafter, unless either Landlord or Tenant elects, by providing Notice to the other party not sooner than six (6) months and no later than two (2) months prior to the scheduled expiration of the Fixed Term or the
then current Renewal Term, as applicable, to terminate this Agreement upon the expiration of the Fixed Term or the then current Renewal Term, as applicable. Any such Notice to terminate shall, if given, be irrevocable, but Tenant’s failure to
terminate shall not preclude Landlord from exercising any of its rights to terminate this Agreement in accordance with the terms hereof. 
 Each Renewal Term shall commence on the day succeeding the expiration of the Fixed Term or the preceding Renewal Term, as the case may be. All of the terms, covenants and provisions of this Agreement
shall apply to each such Renewal Term. If Landlord or Tenant does not give Notice that it elects to terminate this Agreement in accordance with this Section 2.4, this Agreement shall automatically renew at the end of the Fixed Term or
the Renewal Term then in effect as provided in the preceding paragraph. 
 2.5 Early Termination. Notwithstanding any
other provision of this Article 2 or Article 15 hereof, Landlord or Tenant may terminate this Agreement effective upon the expiration or earlier termination of the Management Agreement, provided that the terminating party provides
written notice of such termination to the other party (i) no later than thirty (30) days prior to the expiration of the term of the Management Agreement or (ii) in the event of an earlier termination of the Management Agreement,
within five (5) days of such party’s receipt of notice that the Management Agreement will be terminated (or, with respect to a termination of the Management Agreement by Tenant, upon providing notice to Manager of Tenant’s election to
terminate the Management Agreement). 
 ARTICLE 3 
 RENT 
 3.1 Rent. Tenant shall pay or cause Manager to pay to
Landlord by wire transfer of immediately available federal funds or by other means acceptable to Landlord in its sole discretion, in lawful money of the United States of America which shall be legal tender for the payment of public and private
debts, without notice, offset, abatement, demand or deduction (unless otherwise expressly provided in this Agreement), Rent during the Term as follows: 
 (a) Commencing with the Commencement Date, the Rent payable in each calendar month shall be in an amount equal to the sum of the following: 

(i) the amount of Minimum Rent set forth on Exhibit A which shall be payable monthly in arrears on or before the first
(1st) day of the subsequent calendar month; provided, however, that Minimum Rent shall be prorated as to any Lease Year which is less than twelve (12) calendar months and as to any partial calendar months; and 

  
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 (ii) an amount of percentage rent (“Percentage Rent”), calculated
for each calendar month, equal to the aggregate of the Period Revenues Computation, through the end of such calendar month, which amount shall be payable monthly in arrears, on or before the first (1st) day of the subsequent calendar month.

 Landlord and Tenant agree that a percentage of the Rent payable under this Agreement per quarter shall be paid for, and
allocable to, the rental of tangible personal property included in the Leased Property. Such percentage shall be calculated using a numerator of the average of the aggregate fair market values of all Leased Personal Property at the beginning
and end of the taxable year with respect to which such quarter relates and a denominator of the average of the aggregate fair market values of all Leased Property at the beginning and end of the taxable year with respect to which such quarter
relates, which such fair market values shall be determined by reference to the amount of Landlord’s original investment in such property, adjusted from time to time to take account of economic appreciation and depreciation as well
as Capital Expenditures made with respect to the Leased Property and additional amounts invested in Leased Personal Property. 
 If (A) any amount of Rent otherwise accruing or payable to the Landlord under this Agreement with respect to a calendar year and which is properly allocable to either of CHT GP, LLC or CNL Healthcare
Trust, Inc. pursuant to the provisions of the Limited Partnership Agreement (as amended) of CHT Partners, LP would fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code if received or accrued
by CNL Healthcare Trust, Inc., with respect to such calendar year (such amount of “non-qualifying” gross income otherwise accruing or payable under this Agreement hereinafter referred to as “Excess Rent”), and
(B) such Excess Rent, when aggregated with all other “non-qualifying” gross income of CNL Healthcare Trust, Inc., with respect to such calendar year within the meaning of Sections 856(c)(2) or 856(c)(3) of the Code (the
“Gross Income Tests”) would cause CNL Healthcare Trust, Inc., to fail to satisfy either of the Gross Income Tests (determined without regard to the provisions of this Real Estate Investment Trust
(“REIT”) gross income compliance threshold provision or a similar REIT gross income compliance threshold provision contained in any other rental or contractual agreement (collectively, the “Compliance Threshold
Provisions”)), then the portion of such Excess Rent equal to the product of (1) the Excess Rent, multiplied by (2) the “Limitation Ratio,” as defined below, shall be deemed not to accrue or otherwise be
payable as Rent for all purposes of this Agreement. 
 For purposes of the foregoing paragraph, the “Limitation
Ratio” shall be a fraction (x) the numerator of which is the excess of (I) the aggregate amount of “non-qualifying” gross income CNL Healthcare Trust, Inc., would receive or accrue for such calendar year, determined
without the limitation provisions of any Compliance Threshold Provisions, over (II) the 

  
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aggregate amount of “non-qualifying” gross income CNL Healthcare Trust, Inc., would be permitted to receive for such calendar year without failing to satisfy either of the Gross Income
Tests, and (y) the denominator of which is the aggregate of all amounts described as “Excess Rent” (or other similar term) pursuant to any of the Compliance Threshold Provisions with respect to such calendar year. 

(b) The “Period Revenues Computation” shall be an amount equal to the sum of, for the applicable Lease Year,
(1) an amount equal to the First Tier Gross Revenues Percentage of the Lease Year-to-date Gross Revenues up to (but not exceeding) the First Tier Gross Revenues Break Point, (2) an amount equal to the Second Tier Gross Revenues Percentage
of the Lease Year-to-date Gross Revenues in excess of the First Tier Gross Revenues Break Point not exceeding the Second Tier Gross Revenues Break Point, (3) an amount equal to the Third Tier Gross Revenues Percentage of the Lease Year-to-date
Gross Revenues in excess of the Second Tier Gross Revenues Break Point not exceeding the Third Tier Gross Revenues Break Point, and (4) an amount equal to the Fourth Tier Gross Revenues Percentage of the Lease Year-to-date Gross Revenues in
excess of the Third Tier Gross Revenues Break Point, minus, in each case, the aggregate of Period Revenues Computations calculated for such tier for each previous calendar month in such Lease Year (if any). 

Landlord and Tenant expressly acknowledge and agree that the threshold and percentages for establishing Percentage Rent, including those
with respect to Period Revenues Computation, are set out on Exhibit C to this Agreement. 
 The amount of Minimum
Rent payable for each calendar month of a Lease Year shall equal 1/12 of the annual amount of Minimum Rent, which amount shall be prorated as necessary pursuant to Section 3.1(a)(i). There shall be no reduction in Minimum Rent regardless
of the result of the Period Revenues Computation; provided, however, Rent shall be “trued up” and for each month during the Term, such that Rent payable hereunder shall in each Lease Year equal the sum of Minimum Rent and
Percentage Rent, as the same is aggregated from month to month within each such Lease Year. 
 If the Term begins or ends in the
middle of a calendar year, then the number of calendar months falling within the Term during such calendar year shall constitute a separate Lease Year. In that event, the First Tier Gross Revenues Break Point, the Second Tier Gross Revenues Break
Point and the Third Tier Gross Revenues Break Point shall be multiplied by a fraction equal to (x) the number of calendar months (including partial calendar months) in the Lease Year divided by (y) twelve (12). 

Notwithstanding anything in this Agreement to the contrary, in the event cash available from Gross Revenues after payment of all Facility
operating expenses, debt service, taxes, insurance, management fees and other fees and expenses due and payable from Gross Revenues is insufficient to pay Percentage Rent, then the amount of such deficiency shall be deferred and added to and paid in
connection with the next monthly Rent payment or payments due hereunder; provided, however, any Rent deferred as herein provided shall in any event be due and payable and paid prior to the end of the Fiscal Year in which such deferral occurred.

  
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 (c) Tenant shall deliver to Landlord a certificate from an officer of Tenant or Manager with
each Percentage Rent payment setting forth the calculation of the Percentage Rent payment for the most recently completed calendar month of each Lease Year during the Term and Percentage Rent year to date through such recently completed calendar
month. Percentage Rent shall be subject to confirmation and adjustment, if applicable, as set forth in Section 3.2. 

The obligation to pay Rent shall survive the expiration or earlier termination of the Term, and a final reconciliation, taking into
account, among other relevant adjustments, any adjustments which are accrued after such expiration or termination date but which related to Rent accrued prior to such termination date, shall be made not later than thirty (30) days after such
expiration or termination date. 
 3.2 Confirmation of Percentage Rent. Tenant shall utilize, or cause to be utilized, an
accounting system for the Leased Property in accordance with its usual and customary practices, and in accordance with GAAP, that will accurately record all data necessary to compute Percentage Rent, and Tenant shall retain, for at least five
(5) years after the expiration of each Lease Year, reasonably adequate records conforming to such accounting system showing all data necessary to conduct Landlord’s audit and to compute Percentage Rent for the applicable Lease Year.
Landlord shall have the right, for a period of two (2) years following each Lease Year, from time to time, by its accountants or representatives, to audit such information in connection with Landlord’s audit, and to examine all
Tenant’s records (including supporting data and sales and excise tax returns) reasonably required to complete Landlord’s audit and to verify Percentage Rent, subject to any prohibitions or limitations on disclosure of any such data under
Legal Requirements. If any Landlord’s audit discloses a deficiency in the payment of Percentage Rent, and either Tenant agrees with the results of Landlord’s audit or the matter is otherwise determined or compromised, Tenant shall
forthwith pay to Landlord the amount of the deficiency, as finally agreed or determined, together with interest at the Interest Rate from the date when said payment should have been made to the date of payment thereof. If any Landlord’s audit
discloses a deficiency in the determination or reporting of Gross Revenues, which, as finally agreed or determined, exceeds three percent (3%), Tenant shall pay the costs of the portion of Landlord’s audit allocable to the determination of such
Gross Revenues. Any proprietary information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except that such information may be used, subject to appropriate confidentiality safeguards, in any
litigation or arbitration between the parties and except further that Landlord may disclose such information to prospective lenders, investors and underwriters and to any other persons to whom disclosure is necessary to comply with applicable laws,
regulations and government requirements. The obligations of Tenant contained in this Section shall survive the expiration or earlier termination of this Agreement. Any dispute as to the existence or amount of any deficiency in the payment of
Percentage Rent as disclosed by Landlord’s audit shall, if not otherwise settled by the parties, be submitted to arbitration. 

  
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 3.3 Additional Charges. In addition to the Minimum Rent and Percentage Rent,
(a) Tenant also will pay and discharge as and when due and payable all other amounts, liabilities, obligations and Impositions that Tenant assumes or agrees to pay under this Agreement, and (b) in the event of any failure on the part of
Tenant to pay any of those items referred to in clause (a) of this Section 3.3, Tenant also will promptly pay and discharge every fine, penalty, interest and cost that may be added for non-payment or late payment of
such items (the items referred to in clauses (a) and (b) of this Section 3.3 being additional rent hereunder and being referred to herein collectively as the “Additional Charge(s)”),
and Landlord shall have all legal, equitable and contractual rights, powers and remedies provided either in this Agreement or by statute or otherwise in the case of non-payment of the Additional Charges as in the case of non-payment of the Minimum
Rent. If any installment of Minimum Rent, Percentage Rent or Additional Charges (but only as to those Additional Charges that are payable directly to Landlord) shall not be paid on its due date, Tenant will pay Landlord within ten (10) days of
demand, as Additional Charges, an amount equal to the interest computed at the Interest Rate on the amount of such installment, from the due date of such installment to the date of payment thereof. To the extent that Tenant pays any Additional
Charges to Landlord pursuant to the requirements of this Agreement, Tenant shall be relieved of its obligation to pay such Additional Charges to the entity to which they would otherwise be due and Landlord shall pay the same from monies received
from Tenant. 
 3.4 Payment of Impositions. Subject to Article 8 relating to permitted contests, Tenant shall pay,
or cause to be paid, all Impositions before any fine, penalty, interest or cost (other than any opportunity cost as a result of a failure to take advantage of any discount for early payment) may be added for non-payment, such payments to be made
directly to the taxing authorities where feasible, and shall promptly, upon request, furnish to Landlord copies of official receipts or other reasonably satisfactory proof evidencing such payments. If any such Imposition may, at the option of the
taxpayer, lawfully be paid in installments (whether or not interest shall accrue on the unpaid balance of such Imposition), Tenant may exercise the option to pay the same (and any accrued interest on the unpaid balance of such Imposition) in
installments and, in such event, shall pay such installments during the Term as the same become due and before any fine, penalty, premium, further interest or cost may be added thereto. Landlord, at its expense, shall, to the extent required or
permitted by Applicable Law, prepare and file all tax returns and pay all taxes due in respect of Landlord’s net income, gross receipts (from any source other than the Rent received by Landlord from Tenant), sales and use, single business, ad
valorem, franchise taxes and taxes on its capital stock, and Tenant, at its expense, shall, to the extent required or permitted by Applicable Laws, prepare and file all other tax returns and reports in respect of any Imposition as may be required by
Government Agencies. If any refund shall be due from any taxing authority in respect of any Imposition paid by Tenant, the same shall be paid over to or retained by Tenant if no Event of Default shall have occurred hereunder and be continuing. If an
Event of Default shall have been declared by Landlord and be continuing, any such refund shall be paid over to or retained by Landlord. Landlord and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the
request is made with respect to the Leased Property as may be necessary to prepare any required returns and reports. In the event Government Agencies classify any property covered by this Agreement as personal property, Tenant shall file or cause to
be filed by Manager, all personal property tax returns in such jurisdictions where it may legally so file. Each party shall, to the extent it possesses the same, provide the other, upon request, with cost and depreciation 

  
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records necessary for filing returns for any property so classified as personal property. Where Landlord is legally required to file personal property tax returns for property covered by this
Agreement and/or gross receipts tax returns for Rent received by Landlord from Tenant, Landlord shall file the same with reasonable cooperation from Tenant, and Landlord shall provide Tenant with copies of assessment notices in sufficient time for
Tenant to prepare a protest which Landlord shall file. Landlord may, upon notice to Tenant, at Landlord’s option and at Landlord’s sole expense, appeal, protest, or institute such other proceedings (in its or Tenant’s name) as
Landlord may deem appropriate to effect a reduction of real estate assessments and Tenant shall fully cooperate with Landlord in such protest, appeal or other action. 
 Landlord shall give prompt Notice to Tenant of all Impositions payable by Tenant hereunder of which Landlord at any time has knowledge; provided, however, that Landlord’s failure to give any such
notice shall in no way diminish Tenant’s obligation hereunder to pay such Impositions (except that Landlord shall be responsible for any interest or penalties incurred as a result of Landlord’s failure promptly to forward the same).

 In addition, Tenant shall pay the following: 
 (a) Utility Charges. Tenant shall pay or cause to be paid all charges for electricity, power, gas, oil, water and other utilities used in connection with the Leased Property. 

(b) Insurance Premiums. Tenant shall pay or cause to be paid all premiums for the insurance coverage required to be maintained
pursuant to Article 9. 
 (c) Other Charges. Tenant shall pay or cause to be paid all other amounts, liabilities
and obligations arising in connection with the Leased Property except those obligations expressly assumed by Landlord pursuant to the provisions of this Agreement or expressly stated not to be an obligation of Tenant pursuant to this Agreement.

 (d) Reimbursement for Additional Charges. If Tenant pays or causes to be paid property taxes or similar or other
Additional Charges attributable to periods after the end of the Term, whether upon expiration or sooner termination of this Agreement, Tenant may, within a reasonable time after the end of the Term, provide Notice to Landlord of its estimate of such
amounts. Landlord shall promptly reimburse Tenant for all payments of such taxes and other similar Additional Charges that are attributable to any period after the Term of this Agreement. 

3.5 [INTENTIONALLY DELETED] 
 3.6 Net Lease. The Rent shall be absolutely net to Landlord so that this Agreement shall yield to Landlord the full amount of the installments or amounts of the Rent throughout the Term, subject to
any other provisions of this Agreement which expressly provide otherwise, including, without limitation, those provisions for adjustment, refunding or abatement of such Rent and for the funding of Landlord’s obligations pursuant to
Section 14.3. This Agreement is a net lease and, except to the extent otherwise expressly specified in this Agreement, it is agreed and intended that Rent payable hereunder by Tenant shall be paid without notice, demand, counterclaim,
setoff, deduction or defense and without abatement, suspension, deferment, diminution or reduction and that Tenant’s obligation to pay all such amounts, throughout the 

  
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Term and all applicable Renewal Terms is absolute and unconditional and except to the extent otherwise expressly specified in this Agreement, the respective obligations and liabilities of Tenant
and Landlord hereunder shall in no way be released, discharged or otherwise affected for any reason, including without limitation: (a) any defect in the condition, merchantability, design, quality or fitness for use of the Leased Property or
any part thereof, or the failure of the Leased Property to comply with all Applicable Laws, including any inability to occupy or use the Leased Property by reason of such noncompliance; (b) any damage to, removal, abandonment, salvage, loss,
condemnation, theft, scrapping or destruction of or any requisition or taking of the Leased Property or any part thereof, or any environmental conditions on the Leased Property or any property in the vicinity of the Leased Property; (c) any
restriction, prevention or curtailment of or interference with any use of the Leased Property or any part thereof including eviction; (d) any defect in title to or rights to the Leased Property or any lien on such title or rights to the Leased
Property; (e) any change, waiver, extension, indulgence or other action or omission or breach in respect of any obligation or liability of or by any Person; (f) any bankruptcy, insolvency, reorganization, composition, adjustment,
dissolution, liquidation or other like proceedings relating to Tenant or any other Person, or any action taken with respect to this Agreement by any trustee or receiver of Tenant or any other Person, or by any court, in any such proceeding;
(g) any right or claim that Tenant has or might have against any Person, including without limitation Landlord (other than a monetary default) or any vendor, manufacturer, contractor of or for the Leased Property; (h) any failure on the
part of Landlord or any other Person to perform or comply with any of the terms of this Agreement, or of any other agreement; (i) any invalidity, unenforceability, rejection or disaffirmance of this Agreement by operation of law or otherwise
against or by Tenant or any provision hereof; (j) the impossibility of performance by Tenant or Landlord, or both; (k) any action by any court, administrative agency or other Government Agencies; (l) any interference, interruption or
cessation in the use, possession or quiet enjoyment of the Leased Property or otherwise; or (m) any other occurrence whatsoever, whether similar or dissimilar to the foregoing, whether foreseeable or unforeseeable, and whether or not Tenant
shall have notice or knowledge of any of the foregoing; provided, however, that the foregoing shall not apply or be construed to restrict Tenant’s rights in the event of any act or omission by Landlord constituting gross negligence or willful
misconduct. Except as specifically set forth in this Agreement, this Agreement shall be noncancellable by Tenant for any reason whatsoever and, except as expressly provided in this Agreement, Tenant, to the extent now or hereafter permitted by
Applicable Laws, waives all rights now or hereafter conferred by statute or otherwise to quit, terminate or surrender this Agreement or to any diminution, abatement or reduction of Rent payable hereunder. Except as specifically set forth in this
Agreement, under no circumstances or conditions shall Landlord be expected or required to make any payment of any kind hereunder or have any obligations with respect to the use, possession, control, maintenance, alteration, rebuilding, replacing,
repair, restoration or operation of all or any part of the Leased Property, so long as the Leased Property or any part thereof is subject to this Agreement, and Tenant expressly waives the right to perform any such action at the expense of Landlord
pursuant to any law. 

  
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 ARTICLE 4 
 USE OF THE LEASED PROPERTY 
 4.1 Permitted Use. 

4.1.1 Permitted Use. 
 (a) Tenant shall, and shall cause Manager to, at all times during the Term and at any other time that Tenant and Manager shall be in possession of the Leased Property, continuously use and operate, the
Leased Property solely and exclusively as a first class licensed (if licenses are available) assisted living, independent living and dementia care facility (and, at Tenant’s election, in Tenant’s sole and absolute discretion, a skilled
nursing facility), and for such other uses as may be necessary or incidental to such use (such as services provided directly to residents by Tenant or under Service Licenses, as such term is defined below), with appropriate amenities for the same
and for no other purpose without interruption except for minimum necessary interruptions in respect to portions of the Leased Property for periods provided herein for repairs, renovations, replacements and rebuilding all of which shall be carried
out pursuant to, and in accordance with the applicable provisions of this Agreement (the foregoing being referred to as the “Permitted Use”). Subject to Section 16.3, Tenant shall not, and Tenant shall ensure that
Manager shall not, use the Leased Property or any portion thereof for any other use without the prior written consent of Landlord. No use shall be made or permitted to be made of the Leased Property and no acts shall be done thereon which will cause
the cancellation of any insurance policy covering the Leased Property or any part thereof (unless another adequate policy is available), and Tenant shall not, and Tenant shall ensure that Manager shall not, sell or otherwise provide or permit to be
kept, used or sold in or about the Leased Property any article which may be prohibited by law or by the standard form of fire insurance policies, or any other insurance policies required to be carried hereunder, or fire underwriter’s
regulations. Tenant shall, at its sole cost, comply with all Insurance Requirements. Further, Tenant shall not, and Tenant shall ensure that Manager shall not, take or omit to take any action, the taking or omission of which materially impairs the
value or the usefulness of the Leased Property or any part thereof for its Permitted Use. 
 (b) Notwithstanding the foregoing,
in the event that, in the reasonable determination of Landlord and Tenant, it shall no longer be economically practical to operate the Leased Property as an assisted living, independent living and dementia care facility, Landlord may elect to
terminate this Agreement by providing to Tenant Notice thereof, which Notice shall set forth in reasonable detail the reasons therefor. 
 4.1.2 Necessary Approvals. Tenant shall maintain, or cause Manager to maintain, in good standing all Permits and approvals necessary to use and operate, for its Permitted Use, the Leased Property
and the Facility located thereon under Applicable Law and shall provide to Landlord a copy of Tenant’s federal, state and Medicare survey regarding the Facility, and such other information or documents pertaining to said approvals. Landlord
shall at no cost or liability to Landlord cooperate with Tenant in this regard, limited to executing all applications and consents required to be signed by Landlord in order for Tenant to obtain and maintain such approvals. 

  
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 4.1.3 Lawful Use, Etc. Tenant shall not, and Tenant shall ensure that Manager shall
not, (a) use or suffer or permit the use of the Leased Property for any unlawful purpose, (b) commit or suffer to be committed any waste on the Leased Property, or in the Facility, or cause or permit any unlawful nuisance thereon or
therein, or (c) permit the Leased Property, or any portion thereof, to be used in such a manner as (i) might reasonably impair Landlord’s title thereto or to any portion thereof, or (ii) may reasonably allow a claim or claims for
adverse usage or adverse possession by the public, as such, or of implied dedication of the Leased Property or any portion thereof. 
 4.2 Compliance with Legal/Insurance Requirements, Etc. Subject to the provisions of Article 8, Tenant, at its sole expense, shall, or shall cause Manager to, (a) comply with Legal
Requirements and Insurance Requirements in respect of the use, operation, maintenance, repair, alteration and restoration of the Leased Property, and (b) comply with all appropriate Permits, and other authorizations and agreements required for
any use of the Leased Property then being made and which are material to the operation of the Leased Property as an assisted living, independent living and dementia care facility, and for the proper operation and maintenance of the Leased Property
or any part thereof. 
 4.3 Environmental Matters. 

(a) Tenant hereby represents and warrants to Landlord that, as of the Effective Date, there are no Hazardous Materials on any portion of
the Leased Property or the Facility, nor have any Hazardous Materials been released or discharged on any portion of the Leased Property or the Facility. In addition, Tenant hereby represents and warrants that it has previously delivered to Landlord
copies of all reports concerning environmental conditions which have been received by Tenant or any of its Affiliates. In the event of the discovery of Hazardous Materials on any portion of the Leased Property or in the Facility during the Term, and
subject to the provisions of Section 4.3(c), Tenant shall promptly remove such Hazardous Materials, together with all contaminated soil and containers, and shall otherwise remedy the problem in accordance with (i) Comprehensive
Environmental Response, Compensation and Liability Act (42 U.S.C. et seq.), as amended, and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), as amended; (ii) the regulations promulgated thereunder,
from time to time; (iii) all federal, state and local laws, rules and regulations (now or hereafter in effect) dealing with the use, generation, treatment, storage, disposal or abatement of Hazardous Materials; and (iv) the regulations
promulgated thereunder, from time to time (collectively referred to as “Environmental Laws”). Tenant shall indemnify, defend and hold Landlord harmless from and against all loss, costs, liability and damage (including,
without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the presence of Hazardous Materials on the Leased Property or in the Facility; and this obligation of Tenant shall survive
termination. “Hazardous Materials” shall mean and include any substance or material containing one or more of any of the following: “hazardous material,” “hazardous waste,” “hazardous substance,”
“regulated substance,” “petroleum,” “pollutant,” “contaminant,” “polychlorinated biphenyls,” “lead or lead-based paint” or “asbestos” as such terms are defined in any applicable
Environmental Law in such concentration(s) or amount(s) as may impose clean-up, removal, monitoring or other responsibility under the Environmental Laws, as the same may be amended from time to time, or which may present a significant risk of harm
to residents, patients, invitees or employees of the Facility. 

  
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 (b) Subject to the provisions of Sections 4.3(a) and (c) all costs and expenses
of the aforesaid removal of Hazardous Materials from the Leased Property or the Facility, and of the aforesaid compliance with all Environmental Laws, and any amounts paid to Landlord pursuant to the indemnity set forth in
Section 4.3(a), shall be paid by Tenant from its own funds, and not from Gross Revenues or from the Capital Renewals Reserve. 
 (c) To the extent not otherwise covered by insurance maintained by either Tenant or Manager (including any deductible or self-insured retention, if any, related thereto), the amount of any loss, cost,
liability or damage (including without limitation, engineers’ and attorneys’ fees and expenses, and the cost of litigation) arising from the presence of Hazardous Materials on or under the Leased Property or in the Facility as a direct
result of the gross negligence of Tenant’s or Manager’s employees at the Facility (but not any third parties, including any independent contractors retained to provide goods or services to the Facility) shall be paid from Gross Revenues.

 (d) Each party shall undertake reasonable efforts to notify the other party concerning the presence of any Hazardous
Materials on or under the Leased Property or in the Facility of which the notifying party has knowledge; provided, however, that unless required by Legal Requirements, the parties shall otherwise maintain such information confidential. 

ARTICLE 5 

REPAIRS, MAINTENANCE AND REPLACEMENTS 
 5.1 Repairs and Maintenance Costs Which Are Expensed. Tenant shall, and shall cause Manager to, (i) maintain the Leased Property (including, but not limited to, the interior and exterior,
structural, plumbing, HVAC and otherwise) in good repair and working condition and shall make or cause to be made such routine maintenance, repairs and minor alterations as it determines are necessary for such purposes, (ii) not commit waste or
permit impairment or deterioration of the Leased Property (normal wear and tear excepted); (iii) not abandon the Leased Property; (iv) comply in all material respects with all laws, ordinances, regulations and requirements of any
governmental body applicable to the Leased Property; (v) provide prompt written notification to Landlord of any material adverse change to the Leased Property, such as material changes to any environmental condition, including, without
limitation, the presence of bio-contaminants, such as mold; (vi) promptly undertake appropriate assessment, remedial and preventative actions sufficient to meet any guidelines established by Landlord or guidelines or regulations adopted by
applicable authoritative bodies or regulatory agencies in connection with a determination of any material adverse change, and, in any event with respect to mold contamination, Tenant shall undertake or cause to be undertaken (a) removal of the
mold, (b) abatement of the underlying cause of mold (including water intrusion), and (c) repair of any leaks and associated water damage at the Leased Property; and (viii) return the Leased Property and all buildings and improvements
thereon at the expiration of the Term in as reasonably a good condition as when received, ordinary wear and tear excepted, and shall make or cause to be made such routine maintenance, repairs and minor alterations as it determines are necessary for
such purposes. The phrase “routine maintenance, repairs, and minor alterations” as used in this Section 5.1 shall include only those which are normally expensed under generally accepted accounting principles. 

  
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 The cost of such maintenance, repairs and alterations shall be paid from Gross Revenues or
as otherwise provided in the Management Agreement. 
 5.2 Capital Renewals Reserve. 

(a) Tenant shall, or Tenant shall cause Manager to, establish an interest bearing reserve account (the “Capital Renewals
Reserve”), to cover the cost of Routine Capital Expenditures. All interest earned on the funds in the Capital Renewals Reserve shall be added to and shall remain a part of the Capital Renewals Reserve. Such account shall be established
in Landlord’s name and control for the purposes set forth in this Lease. All funds in the Capital Renewals Reserve, all interest earned thereon and all property purchased with funds from the Capital Renewals Reserve shall be and shall remain
the property of Landlord. 
 (b) For each Accounting Period during the Term hereof, Tenant shall transfer into the Capital
Renewals Reserve an amount equal to one twelfth (1/12) of the Capital Renewals Payment. The term “Capital Renewals Payment” shall mean Three Hundred Fifty Dollars ($350.00) per unit per annum during the period commencing
on the Commencement Date and ending on the day immediately preceding the anniversary of the Commencement Date. On each anniversary of the Commencement Date (each, an “Adjustment Date”), the Capital Renewals Payment shall be
increased by any increase in the Index during the preceding 12 month period, as determined calculating a fraction, the numerator of which shall be (A) the Index most recently published immediately prior to the particular Operating Year in
question, minus (B) the Index most recently published immediately prior to the immediately preceding Operating Year, and the denominator of which shall be the Index most recently published immediately prior to the immediately preceding
Operating Year. Mathematically, the Index increase calculation may be expressed as (current Index - last year Index) ÷ last year Index. Notwithstanding anything to the contrary in this Section 5.2(b), in the event that an amount
different than the Capital Renewals Payment set forth above is set forth in a Capital Reserve Budget, or a greater amount is required by the lender holding the first Mortgage on the Facility, then Capital Renewals Payment shall be such different or
greater amount, as the case may be. Transfers into the Capital Renewals Reserve shall be made at the time of each interim accounting described in Section 17.2 hereof. 

(c) Tenant shall, or Tenant shall cause Manager to, prepare an annual estimate (the “Capital Reserve Budget”) of
the expenditures necessary for (i) replacements, renewals and additions to the furniture, fixtures and equipment of the Facility, and (ii) Routine Capital Expenditures, during the ensuing Fiscal Year and shall deliver the Capital Reserve
Budget to Landlord for its review, comment and approval at least thirty-five (35) days (or such earlier time period as required under the Management Agreement) prior to the beginning of each Fiscal Year. The Capital Reserve Budget shall also
indicate the estimated time schedule for making such replacements, renewals, and additions, a reasonable description of items required to be replaced, the number of units to be replaced, unit costs and costs in the aggregate, together with such
additional information as Landlord shall reasonably request, to the extent then known by Manager. 

  
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 (d) Tenant shall, or Tenant shall cause Manager to (in compliance with the applicable
Capital Reserve Budget, unless there has been a change in circumstances), from time to time, make such (i) replacements, renewals and additions to the furniture, fixtures and equipment of the Facility, and (ii) Routine Capital
Expenditures, as Tenant deems necessary, up to the balance in the Capital Renewals Reserve. No expenditures will be made in excess of said balance without the approval of Landlord. In addition, Tenant shall not, and Tenant shall ensure that Manager
shall not, without Landlord’s approval, make any expenditures from the Capital Renewals Reserve that, in the aggregate, exceed the total aggregate amount of expenditures set forth in the then-applicable Capital Reserve Budget; provided,
however, that Tenant or Manager shall be authorized to take appropriate remedial action (including making any necessary expenditures from the Capital Renewals Reserve above the total aggregate amount set forth in the then-applicable Capital
Reserve Budget), without receiving Landlord’s prior approval, to remedy or respond to any of the Emergency Requirements (provided further that Tenant shall notify Landlord of any such remedial action that requires more than a de-minimis
expenditure of funds from the Capital Renewals Reserve). At the end of each Fiscal Year, any amounts remaining in the Capital Renewals Reserve shall be carried forward to the next Fiscal Year. Proceeds from the sale of furniture, fixtures and
equipment no longer necessary to the operation of the Facility shall be added to the Capital Renewals Reserve. The Capital Renewals Reserve will be kept in an interest-bearing account, and any interest which accrues thereon shall be retained in the
Capital Renewals Reserve. Neither (i) proceeds from the disposition of furniture, fixtures and equipment, nor (ii) interest which accrues on amounts held in the Capital Renewals Reserve, shall (1) result in any reduction in the
required transfers to the Capital Renewals Reserve set forth in Section 5.2(b) above, or (2) be included in Gross Revenues. 
 5.3 Capital Expenditures. 
 (a) Tenant, or Manager on behalf of Tenant,
shall prepare an annual estimate (the “Building Estimate”) of all Capital Expenditures, which Building Estimate shall include such detail as is reasonably required to allow Landlord to review and analyze the Capital
Expenditures described therein. Tenant shall, or Tenant shall cause Manager to, submit the Building Estimate to Landlord for its approval at the same time as Tenant is to deliver the preliminary Capital Reserve Budget described in
Section 5.2(c). Tenant shall not, and Tenant shall ensure that Manager shall not, make any Capital Expenditures without the prior written approval of Landlord, except as otherwise permitted herein. Landlord shall not withhold its
approval for any Capital Expenditure required to be made under the terms of the Management Agreement. 

  
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 (b) Notwithstanding the provisions of Section 5.3(a), Tenant shall be authorized
to take appropriate remedial action (including making any necessary Capital Expenditures) without receiving Landlord’s prior approval, to remedy or respond to any of the Emergency Requirements; provided that Tenant shall notify Landlord of any
such remedial action that requires a Capital Expenditure that is not de minimis. Tenant and Manager shall cooperate with Landlord in the pursuit of any such action and shall have the right to participate therein. Landlord shall, upon written request
by Tenant, or Manager on behalf of Tenant, promptly reimburse all expenditures made by Tenant or Manager pursuant to this Section 5.3(b). 
 (c) The cost of all Capital Expenditures (including the expenses incurred by Landlord or Tenant or Manager in connection with any civil or criminal proceeding described above) shall be borne solely by
Landlord (from the Operating Accounts, the Capital Renewals Reserve and from amounts made available by Landlord for such purpose). 
 5.4 Ownership of Replacements. (a) All repairs, alterations, improvements, renewals or replacements made pursuant to this Article 5, and all amounts kept in the Capital Renewals
Reserve, and interest thereon shall, subject to the rights of Manager under the Management Agreement, be the property of Landlord, and (b) all Capital Expenditures shall be the property of Landlord. 

5.5 Tenant’s Personal Property. At the expiration or sooner termination of the Term, Landlord may, in its sole and absolute
discretion, elect either (a) to give Tenant Notice that Tenant shall be required, within ten (10) Business Days after such expiration or termination, to remove all Tenant’s Personal Property and Inventories from the Leased Property or
(b) to buy such Tenant’s Personal Property and Inventories by paying Tenant the book value of such property. Failure of Landlord to make such election shall be deemed an election to proceed in accordance with the preceding clause
(b). 
 5.6 Yield Up. Upon the expiration or sooner termination of this Agreement, Tenant shall vacate and surrender
the Leased Property to Landlord in substantially the same condition in which the Leased Property was in on the Commencement Date, except as repaired, replaced, rebuilt, restored, altered or added to as permitted or required by the provisions of this
Agreement, reasonable wear and tear and Condemnation (and casualty damage, in the event that this Agreement is terminated following a casualty in accordance with Article 10) excepted. 

In addition, as of the expiration or earlier termination of this Agreement, Tenant shall, at Landlord’s sole cost and expense, use
its good faith, commercially reasonable efforts to transfer to and cooperate with Landlord or Landlord’s nominee in connection with the processing of all applications for licenses, operating permits and other governmental authorizations and all
contracts entered into by Tenant, including contracts with governmental or quasi-governmental Entities which may be necessary for the use and operation of the Facility as then operated, but excluding (a) utility deposits and (b) telephone
numbers. Landlord shall indemnify and hold Tenant harmless for all claims, costs and expenses (including reasonable attorneys’ fees) arising from acts or omissions by Landlord under such contracts subsequent to the date of transfer thereof to
Landlord; and Tenant shall indemnify and hold Landlord harmless for all claims, costs and expenses (including reasonable attorney’s fees) arising from acts or omission by Tenant under such contracts prior to the date of transfer thereof to
Landlord. 

  
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 5.7 Management Agreement. Except as otherwise provided below, Tenant shall not amend
or modify the Management Agreement without Landlord’s prior written consent, which consent may be given or withheld by Landlord in its sole and absolute discretion. The Management Agreement shall expressly provide that Manager shall at all
times be an “eligible independent contractor” as defined in Section 856(d) of the Code. The terms of the Management Agreement (a) shall not, in Landlord’s and its counsel’s reasonable opinion, cause the Rent to fail to
qualify as “rents from real property” within the meaning of Section 856(d) of the Code, and (b) shall expressly provide that if Landlord and its counsel reasonably conclude that the terms of the Management Agreement will have
such an effect, then the terms of the Management Agreement will be modified so that the Management Agreement, in the reasonable opinion of Landlord and its counsel, does not cause the Rent to be so characterized under the Code; provided,
however, no such modifications shall affect the amount of management fees or the practical realization of the rights and benefits of the Manager thereunder. 
 To the extent any provisions of this Article 5 shall conflict with any provisions regarding the “FF&E Reserve” set forth in the Management Agreement, the parties hereto hereby
acknowledge and agree that the express provisions set forth in the Management Agreement with respect to same shall control. 

ARTICLE 6 

IMPROVEMENTS, ETC. 
 6.1 Improvements to the Leased Property. Tenant shall not finance the cost of any construction by the granting of a lien on or security interest in the Leased Property, or Tenant’s interest
therein, without the prior written consent of Landlord, which consent may be withheld by Landlord in Landlord’s sole discretion. Any such improvements shall, upon the expiration or sooner termination of this Agreement, remain or pass to and
become the property of Landlord, free and clear of all encumbrances other than Permitted Encumbrances. 
 6.2 Salvage.
Other than Tenant’s Personal Property, all materials which are scrapped or removed in connection with the making of repairs, alterations, improvements, renewals, replacements and additions pursuant to Article 5 shall be disposed of by
Tenant and the net proceeds thereof, if any, shall be deposited in the Capital Renewals Reserve. 
 6.3 Equipment Leases.
Landlord shall enter into such leases of equipment and personal property as Tenant may reasonably request from time to time, provided that the form and substance thereof shall be reasonably satisfactory to Landlord. Tenant shall prepare and deliver
to Landlord all such lease documents for which Landlord’s execution is necessary and Landlord shall promptly, upon approval thereof, execute and deliver such documents to Tenant. Tenant shall, throughout the Term, be responsible for performing
all of Landlord’s obligations under all such documents and agreements. 

  
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 ARTICLE 7 
 LIENS 
 Subject to Article 8, Tenant shall not, and Tenant shall
ensure that Manager does not, directly or indirectly, create or allow to remain, and each shall promptly discharge, at its expense, any lien, encumbrance, attachment, title retention agreement or claim upon the Leased Property or Tenant’s
leasehold interest therein or any attachment, levy, claim or encumbrance in respect of the Rent, other than (a) Permitted Encumbrances, (b) restrictions, liens and other encumbrances which are consented to in writing by Landlord,
(c) liens for those taxes of Landlord which Tenant is not required to pay hereunder, (d) subleases permitted by Article 16, (e) liens for Impositions or for sums resulting from noncompliance with Legal Requirements so long as
(i) the same are not yet due and payable, or (ii) are being contested in accordance with Article 8, (f) liens of mechanics, laborers, materialmen, suppliers or vendors incurred in the ordinary course of business that are not
yet due and payable (but will be paid in full by Tenant or Manager) or are for sums that are being contested in accordance with Article 8, (g) any Mortgage or other liens which are the responsibility of Landlord pursuant to the
provisions of Article 11, and (h) Landlord’s Liens. 
 ARTICLE 8 

PERMITTED CONTESTS 
 Tenant, or Manager at Tenant’s direction, shall have the right to contest the amount or validity of any Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance,
charge or claim (collectively, “Claims”) as to the Leased Property, by appropriate legal proceedings, conducted in good faith and with due diligence, provided that (a) the foregoing shall in no way be construed as
relieving, modifying or extending Tenant’s obligation to pay any Claims required hereunder to be paid by Tenant as finally determined, (b) such contest shall not cause Landlord or Tenant to be in default under any mortgage, deed of trust
or other agreement encumbering the Leased Property or any part thereof (Landlord agreeing that any such mortgage, deed of trust or other agreement shall permit Tenant to exercise the rights granted pursuant to this Article 8) or any interest
therein or result in a lien attaching to the Leased Property, unless such lien is fully bonded or is otherwise secured to the reasonable satisfaction of Landlord, (c) no part of the Leased Property nor any Rent therefrom shall be in any
immediate danger of sale, forfeiture, attachment or loss, and (d) Tenant hereby indemnifies and holds harmless Landlord from and against any cost, claim, damage, penalty or reasonable expense, including reasonable attorneys’ fees, incurred
by Landlord in connection therewith or as a result thereof. Landlord agrees to join in any such proceedings if required legally to prosecute such contest, provided that Landlord shall not thereby be subjected to any liability therefor (including,
without limitation, for the payment of any costs or expenses in connection therewith) unless Tenant agrees to assume and indemnify Landlord with respect to the same. Tenant or Manager, as applicable, shall be entitled to any refund of any Claims and
such charges and penalties or interest thereon which have been paid by Tenant or paid by Landlord to the extent that Landlord has been reimbursed by Tenant. If Tenant shall fail (i) to pay or cause to be paid any Claims when finally determined,
(ii) to provide reasonable security therefor, or (iii) to prosecute or cause to be prosecuted any such contest diligently and in good faith, Landlord may, upon Notice to Tenant, pay such charges, together with interest and penalties due
with respect thereto, and Tenant shall reimburse Landlord therefor, upon demand, as Additional Charges. 

  
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 ARTICLE 9 
 INSURANCE 
 9.1 Insurance. Commencing with the Commencement Date,
Tenant shall, or Tenant shall cause Manager to, procure and maintain the following insurance at all times during the term of this Agreement, provided, however, that Landlord reserves the right, at its sole discretion, to place on behalf of Landlord,
Tenant and Manager, any of the insurance coverages required herein, Landlord shall provide Tenant with written notice prior to exercising such right: 
 (a) All risk property insurance, (and to the extent applicable, Builder’s Risk Insurance) including coverage for loss from fire, windstorm, sprinkler leakage, vandalism and malicious mischief, water
damage, and other risks including extended coverage written on an “All Risk” or Special Form on the Improvements (excluding foundations) and contents including coverage for signs, awnings, canopies, gazebos, fences and retaining walls in
an amount equal to the full (100%) replacement value thereof without a co-insurance penalty (Agreed Value endorsement). 

(b) Flood Insurance, if the Facility is located in whole or in part within an area identified as having a special flood hazard by the
National Flood Insurance Program, with a limit and deductible acceptable to Landlord and such deductible is commercially reasonable and maintained by owners of properties similar in type, location and quality. In the event that the deductible is
deemed commercially unreasonable, any higher deductible must be acceptable to Landlord, which approval will not be unreasonably withheld. 
 (c) Earthquake Insurance, if the Facility is located in whole or in part within an Earthquake zone, with limits and deductibles acceptable to the Landlord and in accordance with that which is customarily
carried by owners of properties similar in type, location and quality as the Improvements. 
 (d) “Business interruption
and extra expense” insurance to be written on an “All Risk” or Special Form (and Earthquake and Flood forms if such insurance for those risks is required, it being understood earthquake and flood business interruption and extra
expense are included in the earthquake and flood sub-limits) covering at least eighteen (18) months’ loss of profits and continuing expenses and extended period of indemnity. 

(e) Insurance against loss from accidental damage to, or from the explosion of, boilers, air conditioning systems, including
refrigeration and heating apparatus, pressure vessels and pressure pipes and other similar apparatus in an amount equal to the full replacement value of such items with deductibles acceptable to Landlord; including business interruption insurance
against loss from these damages in an amount acceptable to Landlord. 

  
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 (f) All insurance policies, except earthquake and flood, procured under clause
(a) above shall provide terrorism coverage, to the extent available through the commercial insurance market or by Federal Act at rates, terms and conditions acceptable to Landlord. If Landlord requires terrorism insurance to be procured by
Tenant (or Manager) under clause (a) above, Landlord shall authorize Tenant (or Manager) to procure such coverage and Tenant (or Manager) shall provide Landlord said rates, terms and conditions of the terrorism insurance upon binding
coverage for the Facility. 
 (g) Commercial general liability against claims for bodily injury, death personal &
advertising injury and property damage (including loss of use resulting therefrom) occurring upon, in or about the premises with limits of at least $2,000,000 per occurrence / $4,000,000 aggregate to cover at least the following hazards:
(i) premises and operations; (ii) products and completed operations, (iii) independent contractors; (iv) contractual liability; liquor liability and innkeepers’ liability on a per occurrence basis. 

(h) Commercial automobile liability insurance including coverage for owned, non-owned and leased automobiles and garage keepers liability
with limits of at least $1,000,000 per accident. 
 (i) Comprehensive crime insurance in an amount acceptable to Landlord and
Tenant; provided that maintenance of the deductible shall be commercially reasonable and shall be maintained by owners of properties similar in type, location and quality as the Facility. 

(j) Statutory workers’ compensation benefits and employers’ liability insurance with limits of at least $1,000,000 per employee
accident or disease, subject to the laws of the State. 
 (k) Employment Practices Liability Insurance with limits in an amount
acceptable to Landlord, and it is acceptable for this policy to be on a claims made trigger, but in any event in an amount of no less than $1,000,000. 
 (l) Umbrella / Excess liability with limits of at least $10,000,000 per occurrence / aggregate with terms at least as broad as the underlying commercial general liability; automobile liability, liquor
liability, and innkeepers’ liability. 
 (m) Insurance against such other insurable risks as Tenant may, from time to time,
reasonably require; and which shall be consistent with industry standards for similar facilities and meets with the approval of Landlord, which approval shall not be unreasonably withheld. 

(n) Insurance required pursuant to the terms of any Mortgage or other loan documents covering the Leased Property. 

  
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 9.2 General Insurance Provisions. 

(a) To the extent any provisions of this Article 9 shall conflict with any provisions regarding insurance set forth in the
Management Agreement, the parties hereto hereby acknowledge and agree that the express provisions set forth in the Management Agreement with respect to same shall control. 
 (b) All insurance described in Section 9.1 may be obtained through blanket insurance programs, provided that such blanket programs substantially fulfill the requirements specified herein. The
blanket insurance programs may include deductibles or risk retention levels; however, the Facility’s responsibility for such deductibles or risk retention levels shall be limited to the Insurance Retention as defined in Section 9.3.

 (c) All insurance required under Section 9.1 may be carried in the name of Manager. With the exception of
worker’s compensation, employer’s liability and employment practices liability, the insurance required under Section 9.1 shall include Landlord, Tenant, and any Mortgagee specified by Landlord, in writing, as additional
insureds as respects liability arising from Tenant’s use or occupancy of the Facility, and mortgagee or loss payee as their interest may appear. Any property losses covered by insurance obtained pursuant to Section 9.1 shall be
payable to the respective parties as their interests may appear. Any Mortgage shall contain provisions to the effect that proceeds of the property insurance shall be available for repair and restoration of the Facility. 

(d) Prior to the effective date of this Lease, Tenant, or Manager on behalf and at the direction of Tenant, shall deliver to Landlord
certificates of insurance and key endorsements evidencing the insurance coverages required under Section 9.1 and any renewals thereof. Tenant, Manager or their insurers shall provide at least thirty (30) days’ prior written
notice to the certificate holder before any cancellation, non-renewal or adverse material change to the coverages required herein. All insurance policies pursuant to this Section 9.1, shall be issued by an insurance carrier having an AM
Best rating of at least A-, VII. All such insurance shall be evaluated by Landlord, Tenant or Manager from time to time to ensure that the limits and coverages are adequate. 
 (e) The parties agree that, provided Manager provides on behalf of Tenant the insurance herein contemplated, the insurance coverages and deductibles maintained pursuant to this Section 9.1 may
be adjusted throughout the Term in accordance with the requirements set forth in the Management Agreement. 
 9.3 Costs and
Expenses. 
 (a) All charges under the blanket programs shall be allocated to the Facility and other similar participating
Facilities on a reasonable basis. 
 (b) Upon Termination, a reserve in an amount agreed upon by Landlord, Tenant or Manager
based upon fully developed loss projections, shall be established from Gross Revenues to cover the amount of any Insurance Retention and all other costs and expenses that will eventually have to be paid by either Tenant or Manager with respect to
pending or contingent claims, including those that arise after Termination for causes arising during the Term. 

  
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 (c) “Insurance Retention” shall mean the insurance policy
deductible; however, for any insurance obtained through the blanket insurance programs, “Insurance Retention” shall mean the Facilities’ per occurrence limit for any loss or reserve as established for the Facility, which limit shall
be the same as is applied to other similar Facilities participating in the blanket insurance programs, or such higher amount if mandated by the insurer for high hazard risks such as earthquake, flood and wind. 

9.4 Waiver of Subrogation. Landlord, Tenant and each of their insurers agree to waive their rights of subrogation as respects any
claims covered, or which should have been covered, by valid and collectible insurance, including any deductibles or self-insurance maintained thereunder. The party carrying such insurance and suffering said loss releases the other of and from any
and all claims with respect to such loss; and they further agree that their respective insurance companies shall have no right of subrogation against the other on account thereof. 

9.5 Indemnification of Landlord. Except as expressly provided herein, Tenant shall fully protect, indemnify and hold harmless
Landlord for, from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and reasonable expenses (including, without limitation, reasonable attorneys’ fees), to the maximum extent permitted by law,
imposed upon or incurred by or asserted against Landlord by reason of: (a) any accident, injury to or death of persons or loss of or damage to property of third parties occurring during the Term on or about the Leased Property or adjoining
sidewalks or rights of way under Tenant’s control, and (b) any use, misuse, condition, management, maintenance or repair by Tenant or anyone claiming under Tenant of the Leased Property or Tenant’s Personal Property during the Term or
any litigation, proceeding or claim by governmental entities to which Landlord is made a party or participant relating to such use, misuse, condition, management, maintenance, or repair thereof to which Landlord is made a party; provided, however,
that Tenant’s obligations hereunder shall not apply to any liability, obligation, claim, damage, penalty, cause of action, cost or expense arising from any gross negligence or willful misconduct of Landlord, its employees, agents, contractors
or invitees. Tenant, at its expense, shall defend any such claim, action or proceeding asserted or instituted against Landlord covered under this indemnity (and shall not be responsible for any duplicative attorneys’ fees incurred by Landlord)
or may compromise or otherwise dispose of the same. The obligations of Tenant under this Section 9.5 shall survive the termination of this Agreement for a period of one (1) year. 

ARTICLE 10 

DAMAGE, REPAIR AND CONDEMNATION 
 10.1 Damage and Repair. 
 (a) If, during the Term, the Facility is damaged
by a Minor Casualty, Tenant shall, or Tenant shall cause Manager to, with all reasonable diligence, proceed to process the claim with the applicable insurance carriers, including settling such claim, and to make the necessary arrangements with
appropriate contractors and suppliers to repair and/or replace the damaged portion of the Facility. Landlord’s consent shall not be needed for Tenant or Manager to perform any of the foregoing, all of which shall be performed in accordance with
Tenant’s 

  
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reasonable judgment; provided, however, that all such work shall be undertaken (i) in a workmanlike manner, and (ii) in accordance with plans and specifications approved by Landlord
(which approval or disapproval shall be made within ten (10) Business Days after Landlord receives the applicable plans or specifications and, if applicable, within ten (10) Business Days after Landlord receives any modifications of said
plans or specifications to accommodate Landlord’s comments), provided that the parties agree that the standard for such repair and/or replacement shall be to repair and/or replace the damaged portion of the Facility to levels of quality and
quantity that are equal to those that existed with respect to such portion of the Facility prior to the occurrence of the damage at issue. Landlord agrees to sign promptly any documents which are necessary to process and/or adjust the claim with the
insurance carriers, as well as any contracts with such contractors and/or suppliers. 
 (b) If, during the Term, the Facility
suffers a Total Casualty, Tenant shall notify Landlord of same within ninety (90) days after the occurrence of such Total Casualty, and either party may terminate this Agreement by written notice provided by the terminating party to the
non-terminating party no later than thirty (30) days after the date of Landlord’s receipt of Tenant’s written notice of the Total Casualty. 
 (c) If, during the Term, the Facility is damaged by fire, casualty or other cause to a greater extent than a Minor Casualty, but not to the extent of a Total Casualty, or if the Facility suffers a Total
Casualty but neither party elects to terminate under Section 10.1(b), Landlord shall, at its cost and expense and with all reasonable diligence, repair and/or replace the damaged portion of the Facility to the same condition as existed
previously. Tenant shall have the right to discontinue operating the Facility to the extent Tenant deems necessary to comply with applicable Legal Requirements or as necessary for the safe and orderly operation of the Facility. To the extent
available, proceeds from the insurance described in Section 9.1 of this Agreement shall be applied to such repairs and/or replacements. The parties agree that Landlord’s obligations to repair and/or replace pursuant to the
provisions of this Section 10.1(c) shall be limited to the extent of available insurance proceeds (plus the amount of any applicable deductibles). The parties further agree that if Landlord is obligated to utilize such available
insurance proceeds to repay any obligations pursuant to any Mortgage, then Landlord shall be entitled to an equitable extension of time (in which Landlord has to fulfill its obligations pursuant to the provisions of this Section 10.1(c))
that is sufficient to allow Landlord to obtain the necessary funding to replace such spent insurance proceeds and to make the repairs and/or replacements required hereunder. The parties further agree that Landlord’s obligations to repair and/or
replace pursuant to the provisions of this Section 10.1(c) shall be subject to Landlord’s ability to obtain such entitlements and/or other governmental approvals as may be necessary to undertake such repair and/or replacement;
provided that Landlord shall undertake good faith efforts to obtain such entitlements and/or approvals. 
 10.2
Condemnation. 
 (a) In the event all or substantially all of the Facility shall be taken in any eminent domain,
condemnation, compulsory acquisition, or similar proceeding by any competent authority for any public or quasi-public use or purpose, or in the event a portion of the Facility shall be so taken, but the result is that it is unreasonable to continue
to operate the Facility in accordance with the standards required by this Agreement, this Agreement shall be terminable at 

  
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the option of either party effective upon ninety (90) days’ written notice to the other party. Landlord and Tenant shall each have the right to initiate such proceedings as they deem
advisable to recover any compensation to which they may be entitled. 
 (b) In the event a portion of the Facility shall be
taken by the events described in Section 10.2(a), or the entire Facility is affected but on a temporary basis, and the result is not to make it unreasonable to continue to operate the Facility, this Agreement shall not terminate, but
Rent due hereunder shall be equitably abated taking into consideration, among other relevant factors, the number of useable rooms, the amount of square footage, or revenues affected or taken by such events. However, so much of any award for any such
partial taking or condemnation as shall be necessary to render the Facility equivalent to its condition prior to such event shall be used for such purpose; and Tenant shall have the right to discontinue operating the Facility or portion of the
Facility to the extent it deems necessary for the safe and orderly operation of the Facility. 
 10.3 Disbursement of
Award. Subject to the terms hereof, Landlord, Tenant and any Mortgagee shall transfer any part of the Award received by them, respectively, together with severance and other damages awarded for the taken Leased Improvements and any deficiency
Landlord or Tenant has agreed to pay, to an escrow agent (“Escrow Agent”) reasonably satisfactory to all parties. Such amounts shall be advanced by Escrow Agent pursuant to Landlord’s, or Mortgagee’s (if any),
instructions so as to permit payment for the cost of any restoration and repair, pursuant to the same terms and conditions as are set forth in Section 10.1. The obligations under this Section 10.3 to disburse the Award and
such other amounts shall be subject to (a) the collection thereof and (b) the release of such Award by the applicable Mortgagee. Tenant’s obligation to restore the Leased Property shall be subject to the availability of the Award to
fund the cost of such repair or restoration upon its compliance with this Section 10.3. 
 To the extent any
provisions of this Article 10 shall conflict with any provisions regarding casualty to, and/or condemnation of, the Facility set forth in the Management Agreement, the parties hereto hereby acknowledge and agree that the express provisions
set forth in the Management Agreement with respect to same shall control. 
 ARTICLE 11 

MORTGAGES, ETC. 
 11.1 Mortgages. 
 (a) Neither Landlord nor any of its Affiliates shall be
permitted to encumber the Facility and/or the Leased Property with any Mortgage unless the proposed Mortgage is on 

  
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commercially reasonable terms and conditions and satisfies any applicable requirements under the Management Agreement. Any Mortgage which meets all of the requirements set forth in this
Section 11.1 shall be referred to in this Agreement as a “Qualified Mortgage.” 
 (b) In the
event Manager receives any reasonable request for information on the Facility from a Qualified Mortgagee (and including any Affiliate of Manager providing any financing in connection with the Facility), Landlord agrees that Manager is hereby
authorized to provide or distribute such information directly to such lender. 
 11.2 No Covenants, Conditions or
Restrictions. 
 (a) Landlord covenants that after the Commencement Date and during the Term, there will not be (unless
Tenant and Manager have given their prior consent thereto) any covenants, conditions or restrictions, including reciprocal easement agreements or cost-sharing arrangements (individually or collectively referred to as
“CC&R’s”) affecting the Leased Property (i) which would prohibit Manager’s operation of the Facility in accordance with the operating standards set forth in this Agreement; (ii) which would allow the
Facility or any part thereof (for example, parking spaces) to be used by persons other than residents, patients, invitees or employees of the Facility; (iii) which would allow the Facility to be used for specified charges or rates which have
not been approved by Manager; or (iv) which would subject the Facility to exclusive arrangements regarding food and beverage operation or retail merchandise. 
 (b) Tenant shall cause Manager to manage and operate the Facility in compliance with all obligations imposed on Landlord or the Facility pursuant to any CC&R’s. 

11.3 Liens; Credit. Tenant shall use commercially reasonable efforts to prevent any liens from being filed against the Facility
which arise from any maintenance, repairs, alterations, improvements, renewals or replacements in or to the Facility, and shall cooperate fully in obtaining the release of any such liens. 

11.4 Amendments Requested by Mortgagee. If requested by any Mortgagee or prospective Mortgagee, Tenant agrees to execute and
deliver any amendment of this Agreement that is reasonably required by such Mortgagee or prospective Mortgagee, provided that Tenant shall be under no obligation to amend this Agreement if the result of such amendment would be to materially and
adversely increase Tenant’s obligations or to materially and adversely affect Tenant’s rights under this Agreement or to amend Article 5. Any such amendment shall be in effect only for the period of time in which such Mortgage is
outstanding. 
 ARTICLE 12 
 DEFAULTS AND REMEDIES 
 12.1 Events of Default. The occurrence of
any one or more of the following events shall constitute an “Event of Default” hereunder: 
 (a) should
Tenant fail to make any payment of Minimum Rent or Percentage Rent when due and such failure shall continue for a period of five (5) Business Days after Notice thereof, or fail to make payment of any other Rent or any other sum (including, but
not limited to, funding of the Capital Renewals Reserve), payable hereunder when due and such failure shall continue for a period of thirty (30) days after Notice thereof; or 

  
 35 

 (b) should Tenant fail to maintain the insurance coverages required under Article 9
and such failure shall continue for ten (10) Business Days after Notice thereof; or 
 (c) subject to Article 8
relating to permitted contests, should Tenant default in the due observance or performance of any of the terms, covenants or agreements contained herein to be performed or observed by it (other than as specified in clauses (a) and
(b) above) and such default shall continue for a period of thirty (30) days after Notice thereof from Landlord to Tenant; provided, however, that if such default is susceptible of cure but such cure cannot be accomplished with due
diligence within such period of time and if, in addition, Tenant commences to cure or cause to be cured such default within thirty (30) days after Notice thereof from Landlord and thereafter prosecutes the curing of such default with all due
diligence, such period of time shall be extended to such period of time (not to exceed ninety (90) days) as may be necessary to cure such default with all due diligence; or 

(d) should Tenant generally not be paying its debts as they become due or should Tenant make a general assignment for the benefit of
creditors; or 
 (e) should any petition be filed by or against Tenant under the Federal bankruptcy laws, or should any other
proceeding be instituted by or against Tenant seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for Tenant or for any substantial part of the property of Tenant and such proceeding is
not dismissed within sixty (60) days after institution thereof, or should Tenant take any action to authorize any of the actions set forth above in this paragraph; or 
 (f) should Tenant cause or institute any proceeding for its dissolution or termination; or 
 (g) unless Tenant shall be contesting such lien or attachment in good faith in accordance with Article 8, should the estate or interest of Tenant in the Leased Property or any part thereof be
levied upon or attached in any proceeding and the same shall not be vacated, discharged or fully bonded or otherwise secured to the reasonable satisfaction of Landlord within the later of (i) sixty (60) days after such attachment or levy,
unless the amount in dispute is less than $500,000.00 (as adjusted each year by increases or decreases in the Index), in which case Tenant shall give notice to Landlord of the dispute but Tenant may defend in any suitable way, and (ii) thirty
(30) days after receipt by Tenant of Notice thereof from Landlord; it being understood and agreed that Tenant may commence a contest of such matter pursuant to Article 8 above following such Notice from Landlord; or 

  
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 (h) the failure of Tenant to correct, or cause Manager to correct, within the time deadlines
set by any Governmental Agency, any deficiency which would result in either of the following actions by such agency with respect to the Facility: (i) a termination of any Reimbursement Contract or any Permit material to the operation of the
Facility, or (ii) the issuance of a stop placement order or ban on new admissions generally; or 
 (i) if a final
unappealable determination is made by applicable state authorities of the revocation or limitation of any Permit required for the lawful operation of the Leased Property in accordance with its Permitted Use or there occurs the loss or material
limitation of any Permit under any other circumstances under which Tenant is required to cease its operation of the Leased Property in accordance with its Permitted Use at the time of such loss or limitation; or 

(j) if Tenant or the Facility should be assessed fines or penalties by any state health or licensing agency having jurisdiction over such
Persons or the Facility in excess of $250,000.00 in any Fiscal Year; or 
 (k) should Tenant be in default under the Management
Agreement beyond any applicable cure period. 
 then, and in any such event, Landlord, in addition to all other remedies available to it, may
terminate this Agreement by giving Notice thereof to Tenant and upon the expiration of the time fixed in such Notice, this Agreement shall terminate and all rights of Tenant under this Agreement shall cease. Landlord shall have and may exercise all
rights and remedies available at law and in equity to Landlord as a result of Tenant’s breach of this Agreement, including without limitation the right of re-entry upon the Leased Property upon and at any time after the occurrence of an Event
of Default. 
 12.2 Remedies. None of (a) the termination of this Agreement pursuant to Section 12.1,
(b) the repossession of the Leased Property or any portion thereof, (c) the failure of Landlord to re-let the Leased Property or any portion thereof, nor (d) the re-letting of all or any portion of the Leased Property, shall relieve
Tenant of its liability and obligations hereunder, all of which shall survive any such termination, repossession or re-letting. In the event of any such termination, repossession or re-letting, Tenant shall forthwith pay to Landlord all Rent due and
payable with respect to the Leased Property through and including the date of such termination, repossession or re-letting. Thereafter, Tenant, until the end of what would have been the Term of this Agreement (assuming no extension beyond the
then-current Term) in the absence of such termination, repossession or re-letting, and whether or not the Leased Property or any portion thereof shall have been re-let, shall, at Landlord’s option, be liable to Landlord for, and shall pay to
Landlord, as current damages, the Rent and other charges which would be payable hereunder for the remainder of the Term had such termination, repossession or re-letting not occurred, less the net proceeds, if any, of any re-letting of the Leased
Property or any other operation of the Leased Property by Landlord (if Landlord repossesses the Leased Property), after deducting all reasonable expenses in connection with such re-letting, or operation, as applicable, including,

  
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without limitation, all repossession costs, brokerage commissions, legal expenses, attorneys’ fees, advertising, expenses of employees, alteration costs and expenses of preparation for such
reletting (such expenses being hereinafter referred to as the “Re-letting Expenses”). Tenant shall pay such current damages to Landlord monthly on the days on which the Minimum Rent would have been payable hereunder if this
Agreement had not been so terminated with respect to such of the Leased Property. 
 In case of any Event of Default, re-entry,
expiration or dispossession by summary proceedings or otherwise, Landlord may (a) re-let the Leased Property or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord’s option, be
equal to, less than or exceed the period which would otherwise have constituted the balance of the Term and may grant concessions or free rent to the extent that Landlord considers advisable and necessary to re-let the same, and (b) may make
such reasonable alterations, repairs and decorations in the Leased Property or any portion thereof as Landlord, in its sole and absolute discretion, considers advisable and necessary for the purpose of re-letting the Leased Property; and the making
of such alterations, repairs and decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid. Subject to the last sentence of this paragraph, Landlord shall in no event be liable in any way whatsoever for
any failure to re-let all or any portion of the Leased Property, or, in the event that the Leased Property is re-let, for failure to collect the rent under such re-letting. To the maximum extent permitted by law, Tenant hereby expressly waives any
and all rights of redemption granted under any present or future laws in the event of Tenant being evicted or dispossessed, or in the event of Landlord obtaining possession of the Leased Property, by reason of the occurrence and continuation of an
Event of Default hereunder. Landlord covenants and agrees, in the event of any such termination, repossession or re-letting as a result of an Event of Default, to use reasonable efforts to mitigate its damages. 

12.3 Waiver of Jury Trial. Landlord and Tenant hereby waive, to the maximum extent permitted by Applicable Laws, trial by jury in
any action, proceeding or counterclaim brought by either or the parties hereto against the other or in respect of any matter whatsoever arising out of or in any way connected with this Agreement, the relationship of Landlord and Tenant hereunder,
Tenant’s occupancy of the Leased Property, and/or any claim for injury or damage. 
 12.4 Application of Funds. Any
payments received by Landlord under any of the provisions of this Agreement during the existence or continuance of any Event of Default (and any payment made to Landlord rather than Tenant due to the existence of any Event of Default) shall be
applied to Tenant’s current and past due obligations under this Agreement in such order as Landlord may determine or as may be prescribed by the laws of the State. 
 12.5 Landlord’s Right to Cure Tenant’s Default. If an Event of Default shall have occurred and be continuing, Landlord, after Notice to Tenant with a courtesy copy to Manager, (which
Notice shall not be required if Landlord shall reasonably determine immediate action is necessary to protect person or property), without waiving or releasing any obligation of Tenant and without waiving or releasing any Event of Default, may (but
shall not be obligated to), at any time thereafter, make such payment or perform such act for the account and at the expense of Tenant, and may, to the maximum extent permitted by law, enter upon the Leased Property or any portion thereof for such
purpose and take all such action thereon as, in Landlord’s sole and 

  
 38 

 
absolute discretion, may be necessary or appropriate therefor. No such entry shall be deemed an eviction of Tenant. All reasonable costs and expenses (including, without limitation, reasonable
attorneys’ fees) incurred by Landlord in connection therewith, together with interest thereon (to the extent permitted by law) at the Interest Rate from the date such sums are paid by Landlord until repaid, shall be paid by Tenant to Landlord,
on demand. 
 12.6 Good Faith Dispute. If Tenant shall in good faith dispute the occurrence of any Default and Tenant,
before the expiration of the applicable cure period, shall give Notice thereof to Landlord, setting forth, in reasonable detail, the basis therefor and, provided Tenant shall escrow disputed amounts, if any, pursuant to an escrow arrangement
reasonably acceptable to Landlord and Tenant, no Event of Default shall be deemed to have occurred; provided, however, that in the event of any eventual adverse determination, Tenant shall pay to Landlord interest on any disputed funds at the
Interest Rate, from the date demand for such funds was made by Landlord until the date of final adverse determination and, thereafter, at the Interest Rate until paid. 
 ARTICLE 13 
 HOLDING OVER 

Any holding over by Tenant after the expiration or sooner termination of this Agreement shall be treated as a daily tenancy at sufferance
at a rate equal to twice the Rent and other charges herein provided (prorated on a daily basis). Tenant shall also pay to Landlord all damages (direct or indirect) sustained by reason of any such holding over. Otherwise, such holding over shall be
on the terms and conditions set forth in this Agreement, to the extent applicable. Nothing contained herein shall constitute the consent, express or implied, of Landlord to the holding over of Tenant after the expiration or earlier termination of
this Agreement. 
 ARTICLE 14 
 LANDLORD’S NOTICE OBLIGATIONS; LANDLORD DEFAULT 
 14.1 Landlord
Notice Obligation. Landlord shall give prompt Notice to Tenant and the Manager of any materially adverse matters affecting the Leased Property of which Landlord receives written notice or actual, conscious, present knowledge and, to the
extent Tenant and/or Manager otherwise has no notice or actual knowledge thereof, Landlord shall be liable for any liabilities, costs, damages or claims (including reasonable attorneys’ fees) arising from the failure to deliver such Notice to
Tenant. As used in this Agreement, “Landlord’s knowledge” or words of similar import shall mean the actual (and not constructive or imputed), conscious, present knowledge, without independent investigation or inquiry, of Joseph T.
Johnson and Stephen H. Mauldin. 
 14.2 Landlord’s Default. It shall be a breach of this Agreement if Landlord fails
to observe or perform any term, covenant or condition of this Agreement on its part to be performed and such failure continues for a period of thirty (30) days after Notice thereof from 

  
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Tenant, unless such failure cannot with due diligence be cured within a period of thirty (30) days, in which case such failure shall not be deemed a breach if Landlord proceeds within such
thirty (30)-day period, with due diligence, to commence to cure the failure and thereafter diligently completes the curing thereof. The time within which Landlord shall be obligated to cure any such failure also shall be subject to extension of time
due to the occurrence of any Unavoidable Delay. If Landlord does not cure any such failure within the applicable time period as aforesaid, Tenant may declare the existence of a “Landlord Default” by a second Notice to
Landlord. Thereafter, Tenant may forthwith cure the same. Tenant shall have no right to terminate this Agreement for any Landlord Default and no right, for any such Landlord Default, to offset or counterclaim against any Rent or other charges due
hereunder. 
 If Landlord shall in good faith dispute the occurrence of a Landlord Default and Landlord, before the expiration
of the applicable cure period, shall give Notice thereof to Tenant, setting forth, in reasonable detail, the basis therefor, no Landlord Default shall be deemed to have occurred and Landlord shall have no obligation with respect thereto until final
adverse determination thereof, whether through arbitration or otherwise; provided, however, that in the event of any such adverse determination, Landlord shall pay to Tenant interest on any disputed funds at the Interest Rate, from the date demand
of such funds was made by Tenant until the date of final adverse determination and, thereafter, at the Interest Rate until paid. If Tenant and Landlord shall fail, in good faith, to resolve any such dispute within thirty (30) days after
Landlord’s Notice of dispute, either may submit the matter for determination by arbitration, but only if such matter is required to be submitted to arbitration pursuant to any provision of this Agreement, or otherwise by a court of competent
jurisdiction. 
 14.3 Tenant’s Right to Cure. Subject to the provisions of Section 14.2, if Landlord
breaches any covenant to be performed by it under this Agreement, Tenant after Notice to and demand upon Landlord as provided in Section 14.2, without waiving or releasing any obligation hereunder, may (but shall be under no obligation
at any time thereafter to) make such payment or perform such act for the account and at the expense of Landlord. All sums so paid by Tenant and all costs and expenses (including, without limitation, reasonable attorneys’ fees) so incurred,
together with interest thereon at the Interest Rate from the date on which such sums or expenses are paid or incurred by Tenant, shall be paid by Landlord to Tenant on demand. The rights of Tenant hereunder to cure and to secure payment from
Landlord in accordance with this Section 14.3 shall survive the termination of this Agreement with respect to the Leased Property. 
 ARTICLE 15 
 TRANSFERS BY LANDLORD 

15.1 Transfer of Leased Property. Landlord shall have the unrestricted right to mortgage or otherwise encumber all or any part of
its right, title and interest in the Leased Property to a Qualified Mortgagee. In the event such Qualified Mortgagee forecloses or otherwise takes possession of the Leased Property pursuant to its mortgage, Tenant shall have the right to terminate
this Agreement immediately upon written notice to the Qualified Mortgagee. Notwithstanding the foregoing, Landlord shall have the unrestricted right to sell and convey the Leased Property to any Person. 

  
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 ARTICLE 16 
 SUBLETTING AND ASSIGNMENT 
 16.1 Subletting and Assignment.

 (a) Except as provided in Section 16.3 and in this Section 16.1, Tenant shall not, without
Landlord’s prior written consent, (which may be given or withheld by Landlord in its sole discretion) assign, mortgage, pledge, hypothecate, encumber or otherwise transfer this Agreement or sublease (which term shall be deemed to include the
granting of concessions, licenses and the like), all or any part of the Leased Property or suffer or permit this Agreement or the leasehold estate created hereby or any other rights arising under this Agreement to be assigned, transferred,
mortgaged, pledged, hypothecated or encumbered, in whole or in part, whether voluntarily, involuntarily or by operation of law, or permit the use or operation of the Leased Property by anyone other than Tenant or Manager, or the Leased Property to
be offered or advertised for assignment or subletting. For purposes of this Section 16.1, an assignment of this Agreement shall be deemed to include the following: without Landlord’s consent, any direct or indirect transfer of any
interest in Tenant or any transaction pursuant to which Tenant is merged or consolidated with another Entity or pursuant to which all or substantially all of Tenant’s assets are transferred to any other Entity, as if such change in control or
transaction were an assignment of this Agreement but shall not include any involuntary liens or attachments contested by Tenant in good faith in accordance with Article 8. 

(b) If this Agreement is assigned or if the Leased Property or any part thereof is sublet (or occupied by anybody other than Tenant
hereunder) Landlord may collect the rents from such assignee, subtenant or occupant, as the case may be, and apply the net amount collected to the Rent herein reserved, but no such collection shall be deemed a waiver of the provisions set forth in
the first paragraph of this Section 16.1, the acceptance by Landlord of such assignee, subtenant or occupant, as the case may be, as a tenant, or a release of Tenant from the future performance by Tenant of its covenants, agreements or
obligations contained in this Agreement. 
 (c) No subletting or assignment shall in any way impair the continuing primary
liability of Tenant hereunder (unless Landlord and Tenant expressly otherwise agree that Tenant shall be released from all obligations hereunder), and no consent to any subletting or assignment in a particular instance shall be deemed to be a waiver
of the prohibition set forth in this Section 16.1. No assignment, subletting or occupancy shall affect any Permitted Use. Any subletting, assignment or other transfer of Tenant’s interest under this Agreement in contravention of
this Section 16.1 shall be voidable at Landlord’s option. 
 16.2 Required Sublease Provisions. Any
sublease of any portion of the Leased Property entered into on or after the date hereof shall provide (a) that it is subject and subordinate to this Agreement and to the matters to which this Agreement is or shall be subject or subordinate;
(b) that in the event of termination of this Agreement or reentry or dispossession 

  
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of Tenant by Landlord under this Agreement, Landlord may, at its option, terminate such sublease or take over all of the right, title and interest of Tenant, as sublessor under such sublease,
and, except as provided below, such subtenant shall, at Landlord’s option, attorn to Landlord pursuant to the then executory provisions of such sublease, except that neither Landlord nor any Mortgagee, as holder of a mortgage or as Landlord
under this Agreement, if such Mortgagee succeeds to that position, shall (i) be liable for any act or omission of Tenant under such sublease, (ii) be subject to any credit, counterclaim, offset or defense which theretofore accrued to such
subtenant against Tenant, (iii) be bound by any previous prepayment of more than one (1) Accounting Period, (iv) be bound by any covenant of Tenant to undertake or complete any construction of the Leased Property or any portion
thereof, (v) be required to account for any security deposit of the subtenant other than any security deposit actually delivered to Landlord by Tenant, (vi) be bound by any obligation to make any payment to such subtenant or grant any
credits, except for services, repairs, maintenance and restoration provided for under the sublease that are performed after the date of such attornment, (vii) be responsible for any monies owing by Tenant to the credit of such subtenant, or
(viii) be required to remove any Person occupying any portion of the Leased Property; and (c) in the event that such subtenant receives a written Notice from Landlord or any Mortgagee stating that an Event of Default has occurred and is
continuing, such subtenant shall thereafter be obligated to pay all rentals accruing under such sublease directly to the party giving such Notice or as such party may direct. All rentals received from such subtenant by Landlord or the Mortgagee, as
the case may be, shall be credited against the amounts owing by Tenant under this Agreement and such sublease shall provide that the subtenant thereunder shall, at the request of Landlord, execute a suitable instrument in confirmation of such
agreement to attorn. An original counterpart of each such sublease duly executed by Tenant and such subtenant shall be delivered promptly to Landlord and Tenant shall remain liable for the payment of the Rent and for the performance and observance
of all of the covenants and conditions to be performed by Tenant hereunder. The provisions of this Section 16.2 shall not be deemed a waiver of the provisions set forth in Section 16.1(a). No subtenant that is an Affiliate of
Tenant shall be required to attorn to Landlord as set forth above in this Section 16.2. 
 16.3 Permitted
Sublease and Assignment. Notwithstanding the foregoing, but subject to the provisions of Section 16.4 and any other express conditions or limitations set forth herein, Tenant may, without Landlord’s consent, (a) sublease
space at the Leased Property for newsstand, gift shop, parking garage, food concession, or similar concessions in furtherance of the Permitted Use; and (b) sublease additional space at the Leased Property for any such ancillary uses, so long as
such additional subleases do not demise, in the aggregate, in excess of 2,000 square feet (exclusive of any parking garage subleases), and will not violate or affect any Legal Requirement or Insurance Requirement. 

16.4 Sublease Limitation. For so long as Landlord or any Affiliate as to Landlord or any Member of Landlord or any Member thereof,
shall seek to qualify as a real estate investment trust, anything contained in this Agreement to the contrary notwithstanding, Tenant shall not sublet the Leased Property on any basis such that the rental to be paid by any sublessee thereunder would
be based, in whole or in part, on either (a) the income or profits derived by the 

  
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business activities of such sublessee, or (b) any other formula such that any portion of such sublease rental would fail to qualify as “rents from real property” within the meaning
of Section 856(d) of the Code, or any similar or successor provision thereto. 
 ARTICLE 17 

ESTOPPEL CERTIFICATES AND FINANCIAL STATEMENTS 
 17.1 Estoppel Certificates. At any time and from time to time, upon not less than ten (10) Business Days prior Notice by either party, the party receiving such Notice shall furnish to the
other a certificate certifying that this Agreement is unmodified and in full force and effect (or that this Agreement is in full force and effect as modified and setting forth the modifications), the date to which the Rent has been paid, that to its
knowledge no Default or an Event of Default by the other party has occurred and is continuing or, if a Default or an Event of Default shall exist, specifying in reasonable detail the nature thereof, and the steps being taken to remedy the same, and
such additional information as the requesting party may reasonably request. If such additional information reasonably requires more than ten (10) Business Days to provide, the party furnishing such information shall be entitled to such
additional period to respond to such request as may be reasonably required under the circumstances. Any such certificate furnished pursuant to this Section 17.1 may be relied upon by the requesting party, its lenders and any prospective
purchaser or mortgagee of the Leased Property or the leasehold estate created hereby. 
 17.2 Accounting, Distributions and
Annual Reconciliation. 
 (a) Within fifteen (15) days after the close of each Accounting Period (or such earlier time
period as required under the Management Agreement), Tenant shall cause Manager to deliver to Landlord an interim financial statement (each, an “Accounting Period Statement”) showing Gross Revenues and applications and
distributions thereof for the preceding Accounting Period, together with any and all other information required to be reflected on or provided with such Accounting Period Statement as may be required pursuant to the Management Agreement. Each such
Accounting Period Statement shall be accompanied by a certificate of any officer or other authorized representative of Manager certifying that such Accounting Period Statement was prepared under such person’s direction in accordance with GAAP,
and in such person’s opinion is true and correct. Tenant shall cause Manager to transfer to Tenant, with each Accounting Period Statement, any interim amounts due Tenant, subject to Working Capital needs, and shall retain any interim amounts
due Manager. 
 (b) Calculations and payments of the management fees due Manager, and distributions to Tenant made with respect
to each Accounting Period within a Fiscal Year shall be accounted for cumulatively. Within seventy-five (75) days after the end of each Fiscal Year, Tenant shall cause Manager to deliver to Landlord a financial statement (each, an
“Annual Operating Statement”) in reasonable detail summarizing the operations of the Facility for the immediately preceding Fiscal Year, together with any and all other information required to be reflected on or provided with
such Annual Operating Statement as may be required pursuant to the Management Agreement. Each such Annual Operating Statement shall be accompanied by a 

  
 43 

 
certificate of any officer or other authorized representative of Manager certifying that such Annual Operating Statement was prepared under such person’s direction in accordance with GAAP,
and in such person’s opinion is true and correct. After Landlord’s receipt of such Annual Operating Statement, the parties shall promptly make any adjustments, by cash payment, in the amounts paid or retained for such Fiscal Year as are
needed because of the final figures set forth in such Annual Operating Statement. Such Annual Operating Statement shall be controlling over the preceding Accounting Period Statements. 

17.3 Books and Records. Books of control and account pertaining to operations at the Facility shall be kept on an accrual basis
and in all material respects in accordance with the Uniform System of Accounts and generally accepted accounting principles consistently applied. Tenant, upon Landlord’s reasonable request and at reasonable intervals during Manager’s
normal business hours shall examine such records. 
 17.4 Accounts, Expenditures. 

(a) Tenant shall cause all funds derived from operation of the Facility to be deposited by Manager in bank accounts (the
“Operating Accounts”) established by Manager and Tenant in a bank or banks designated by Tenant, or at Tenant’s direction by Manager, subject to Landlord’s approval. Withdrawals from said Operating Accounts shall be
made solely by representatives whose signatures have been authorized by Tenant. Reasonable petty cash funds in the ordinary course of business shall be maintained at the Facility. 

(b) Tenant shall cause all payments to be made by Manager under the Management Agreement to be made from the Operating Accounts, petty
cash funds, or from the Capital Renewals Reserve (in accordance with the terms of the Management Agreement). 
 To the extent
any provisions of this Article 17 shall conflict with any provisions regarding financial and operational reporting requirements, business plans, operating accounts, operating budgets and/or books and records requirements set forth in the
Management Agreement, the parties hereto hereby acknowledge and agree that the express provisions set forth in the Management Agreement with respect to same shall control. 
 ARTICLE 18 
 LANDLORD’S RIGHT TO INSPECT 

Tenant shall permit Landlord and its authorized representatives to inspect the Leased Property at reasonable times of the day upon not
less than twenty-four (24) hours’ Notice, and to make such repairs as Landlord is permitted or required to make pursuant to the terms of this Agreement, provided that any inspection or repair by Landlord or its representatives will not
unreasonably interfere with Tenant’s use and operation of the Leased Property and further provided that in the event of an emergency, as determined by Landlord in its reasonable discretion, prior Notice shall not be necessary. 

  
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 ARTICLE 19 
 MISCELLANEOUS 
 19.1 Limitation on Payment of Rent. All agreements
between Landlord and Tenant herein are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of Rent, or otherwise, shall the Rent or any other amounts payable to Landlord under this Agreement
exceed the maximum permissible under Applicable Laws, the benefit of which may be asserted by Tenant as a defense, and if, from any circumstance whatsoever, fulfillment of any provision of this Agreement, at the time performance of such provision
shall be due, shall involve transcending the limit of validity prescribed by law, or if from any circumstances Landlord should ever receive as fulfillment of such provision such an excessive amount, then, ipso facto, the amount which would be
excessive shall be applied to the reduction of the installment(s) of Minimum Rent next due and not to the payment of such excessive amount. This provision shall control every other provision of this Agreement and any other agreements between
Landlord and Tenant. 
 19.2 No Waiver. No failure by Landlord or Tenant to insist upon the strict performance of any
term hereof or to exercise any right, power or remedy consequent upon a breach thereof, and no acceptance of full or partial payment of Rent during the continuance of any such breach, shall constitute a waiver of any such breach or of any such term.
To the maximum extent permitted by law, no waiver of any breach shall affect or alter this Agreement, which shall continue in full force and effect with respect to any other then existing or subsequent breach. 

19.3 Remedies Cumulative. To the maximum extent permitted by law, each legal, equitable or contractual right, power and remedy of
Landlord or Tenant, now or hereafter provided either in this Agreement or by statute or otherwise, shall be cumulative and concurrent and shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by
Landlord or Tenant (as applicable) of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Landlord of any or all of such other rights, powers and remedies. 

19.4 Severability. Any clause, sentence, paragraph, section or provision of this Agreement held by a court of competent
jurisdiction to be invalid, illegal or ineffective shall not impair, invalidate or nullify the remainder of this Agreement, but rather the effect thereof shall be confined to the clause, sentence, paragraph, section or provision so held to be
invalid, illegal or ineffective, and this Agreement shall be construed as if such invalid, illegal or ineffective provisions had never been contained therein. 
 19.5 Acceptance of Surrender. No surrender to Landlord of this Agreement or to the Leased Property or any part thereof, or of any interest therein, shall be valid or effective unless agreed to and
accepted in writing by Landlord and no act by Landlord or any representative or agent of Landlord, other than such a written acceptance by Landlord, shall constitute an acceptance of any such surrender. 

  
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 19.6 No Merger of Title. It is expressly acknowledged and agreed that it is the
intent of the parties that there shall be no merger of this Agreement or of the leasehold estate created hereby by reason of the fact that the same Person may acquire, own or hold, directly or indirectly this Agreement or the leasehold estate
created hereby and the fee estate or ground landlord’s interest in the Leased Property. 
 19.7 Conveyance by
Landlord. If Landlord or any successor owner of all or any portion of the Leased Property shall convey all or any portion of the Leased Property in accordance with the terms of this Agreement other than as security for a debt, and the grantee or
transferee of the Leased Property shall expressly assume all obligations of Landlord hereunder arising or accruing from and after the date of such conveyance or transfer, Landlord or such successor owner, as the case may be, shall thereupon be
released from all future liabilities and obligations of Landlord under this Agreement with respect to such of the Leased Property arising or accruing from and after the date of such conveyance or other transfer and all such future liabilities and
obligations shall thereupon be binding upon the new owner. 
 19.8 Quiet Enjoyment. Provided that no Event of Default
shall have occurred and be continuing, Tenant shall peaceably and quietly have, hold and enjoy the Leased Property for the Term, free of hindrance or molestation by Landlord or anyone claiming by, through or under Landlord, but subject to
(a) any encumbrance permitted to be created by Landlord hereunder, (b) all Permitted Encumbrances, (c) liens as to obligations of Landlord that are either not yet due or which are being contested in good faith and by proper
proceedings, provided the same do not materially interfere with Tenant’s ability to operate the Facility and (d) liens that have been consented to in writing by Tenant. Except as otherwise provided in this Agreement, no failure by Landlord
to comply with the foregoing covenant shall give Tenant the right to cancel or terminate this Agreement or abate, reduce or make a deduction from or offset against the Rent or any other sum payable under this Agreement, or to fail to perform any
other obligation of Tenant hereunder. 
 19.9 Memorandum of Lease. Neither Landlord nor Tenant shall record this
Agreement. However, Landlord and Tenant shall promptly, upon the request of the other, enter into a short form memorandum of this Agreement, in form suitable for recording under the laws of the State in which reference to this Agreement, and all
options contained herein, shall be made. The parties shall share equally all costs and expenses of recording such memorandum. 

19.10 Notices. 
 (a) Any and all notices, demands, consents, approvals, offers, elections and other communications required or permitted under this Agreement shall be deemed adequately given if in writing and the same
shall be delivered either in hand, or by mail or Federal Express or similar expedited commercial carrier, addressed to the recipient of the notice, postpaid and registered or certified with return receipt requested (if by mail), or with all freight
charges prepaid (if by Federal Express or similar carrier). 
 (b) All notices required or permitted to be sent hereunder shall
be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal, except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be delivered on or
before a specific day which is not a Business Day, the day of receipt or required delivery shall automatically be extended to the next Business Day. 

  
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 (c) All such notices shall be addressed, 

 

			
	 If to Landlord to:
  

Webster City IA Assisted Living Owner, LLC

c/o CNL Healthcare Trust, Inc.
 CNL Center at
City Commons
 450 South Orange Avenue, 12th Floor

Orlando, Florida 32801-3736

	 Attn:
 Attn:
	 	 Holly J. Greer, Esq., SVP and General Counsel
 Joseph T. Johnson, SVP and Chief Financial Officer

	  
 with a copy to:

 
 Lowndes Drosdick Doster Kantor and Reed, P.A.

215 North Eola Drive
 Post Office Box
2809
 Orlando, Florida 32802-2809

	Attn:	 	William T. Dymond, Jr., Esq.
	  
 if to Tenant to:

 
 Webster City IA Assisted Living Tenant, LLC

c/o CNL Healthcare Trust, Inc.
 CNL Center at
City Commons
 450 South Orange Avenue, 12th Floor

Orlando, Florida 32801-3736

	Attn:	 	Holly Greer, Esq., SVP and General Counsel
	Attn:	 	Joseph T. Johnson, SVP and Chief Financial Officer
	  
 with a copy to:

 
 Lowndes Drosdick Doster Kantor and Reed, P.A.

215 North Eola Drive
 Post Office Box
2809
 Orlando, Florida 32802-2809

	Attn:	 	William T. Dymond, Jr., Esq.

  
 47 

 (d) By notice given as herein provided, the parties hereto and their respective successors
and assigns shall have the right from time to time and at any time during the term of this Agreement to change their respective addresses effective upon receipt by the other parties of such notice and each shall have the right to specify as its
address any other address within the United States of America. 
 19.11 Construction; Nonrecourse. Neither this Agreement
nor any provision hereof may be changed, waived, discharged or terminated except by an instrument in writing signed by all the parties thereto. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective permitted successors and assigns. Each term or provision of this Agreement to be performed by Tenant shall be construed as an independent covenant and condition. Time is of the essence with respect to the exercise
of any rights of Tenant or Landlord under this Agreement. In the event of any dispute between the parties concerning this Agreement, Landlord shall be entitled to an award of attorney’s fees and costs in connection with such dispute, including
in connection with any suit, action, arbitration or other proceeding concerning such dispute. Except as otherwise set forth in this Agreement, any obligations arising prior to the expiration or sooner termination of this Agreement of Tenant
(including without limitation, any monetary, repair and indemnification obligations) and Landlord shall survive the expiration or sooner termination of this Agreement; provided, however, that each party shall be required to give the other Notice of
any such surviving and unsatisfied obligations within one year after the expiration or sooner termination of this Agreement. Nothing contained in this Agreement shall be construed to create or impose any liabilities or obligations and no such
liabilities or obligations shall be imposed on any of the shareholders, beneficial owners, direct or indirect, officers, directors, trustees, employees or agents of Landlord or Tenant for the payment or performance of the obligations or liabilities
of Landlord or Tenant hereunder. Further, in the event Landlord shall be in default under this Agreement, and if as a consequence of such default, Tenant shall recover a money judgment against Landlord, such judgment shall be satisfied only out of
the proceeds of sale received upon execution of such judgment against the right, title and interest of Landlord in the Leased Property. 
 19.12 Counterparts; Headings. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but which, when taken together, shall constitute but one
instrument and shall become effective as of the date hereof when copies hereof, which, when taken together, bear the signatures of each of the parties hereto shall have been signed. Headings in this Agreement are for purposes of reference only and
shall not limit or affect the meaning of the provisions hereof. 
 19.13 Applicable Law, Etc. This Agreement shall be
interpreted, construed, applied and enforced in accordance with the laws of the State applicable to contracts between residents of the State which are to be performed entirely within the State, regardless of (a) where this Agreement is executed
or delivered; or (b) where any payment or other performance required by this Agreement is made or required to be made; or (c) where any breach of any provision of this Agreement occurs, or any cause of action otherwise accrues; or
(d) where any action or other proceeding is instituted or pending; or (e) the nationality, citizenship, domicile, principal place of business, or jurisdiction of organization or domestication of any party; or (f) whether the laws of
the forum jurisdiction otherwise would apply the laws of a jurisdiction other than the State; or 

  
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(g) any combination of the foregoing. To the maximum extent permitted by applicable law, any action to enforce, arising out of, or relating in any way to, any of the provisions of this
Agreement may be brought and prosecuted in such court or courts located in the State as is provided by law; and the parties consent to the jurisdiction of said court or courts located in the State and to service of process by registered mail, return
receipt requested, or by any other manner provided by law. 
 19.14 Right to Make Agreement. Each party warrants, with
respect to itself, that neither the execution of this Agreement, nor the consummation of any transaction contemplated hereby, shall violate any provision of any law, or any judgment, writ, injunction, order or decree of any court or governmental
authority having jurisdiction over it; nor result in or constitute a breach or default under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; nor require any consent, vote or approval which has
not been given or taken, or at the time of the transaction involved shall not have been given or taken. Each party covenants that it has and will continue to have throughout the term of this Agreement and any extensions thereof, the full right to
enter into this Agreement and perform its obligations hereunder. 
 19.15 Disclosure of Information. 

(a) The parties hereto agree that the matters set forth in this Agreement and any revenue, expense, net profit and occupancy information
regarding the Facility are strictly confidential and each party will make every effort to ensure that the information is not disclosed to any Person that is not an Affiliate as to any party (including the press) without the prior express written
consent of the other party, except as may be required by law and as may be reasonably necessary to obtain Permits and other public approvals necessary for the refurbishment or operation of the Facility, or, in connection with a Landlord financing, a
sale of the Facility, or a sale of a Controlling Interest in Landlord or Tenant. 
 (b) Notwithstanding anything to the contrary
in the foregoing provisions of this Section 19.15 or elsewhere in this Agreement, any party (and any employee, representative or other agent of any party) may disclose to any and all Persons, without limitation of any kind, the tax
treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to any party relating to such tax treatment and tax structure; provided,
however, that any such information and materials shall be kept confidential to the extent necessary to comply with any applicable securities laws. For purposes of the preceding sentence, the tax treatment and tax structure of the transactions
contemplated by this Agreement shall not be deemed to include the identity of the parties, the location of the Leased Property or the amount of Rent payable by Tenant hereunder. The foregoing authorization of disclosure is retroactively effective
immediately upon commencement of the first discussions among the parties regarding the transactions contemplated hereby, and the parties aver and affirm that this tax disclosure authorization has been given on a date which is no later than thirty
(30) days from the first day that any party (or any employee, representative, or other agent of a party) first made or provided a statement as to the potential federal income tax consequences that may result from the transactions contemplated
hereby. 

  
 49 

 (c) The obligations of Tenant and Landlord contained in this Section 19.15 shall
survive the expiration or earlier termination of this Agreement. 
 [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 

  
 50 

 IN WITNESS WHEREOF, the parties have executed this Lease Agreement as a sealed instrument as
of the date above first written. 
  

			
	“LANDLORD”
	
	WEBSTER CITY IA ASSISTED LIVING OWNER, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Kevin Maddron

	Name:	 	Kevin Maddron
	Title:	 	Senior Vice President
	
	“TENANT”
	
	WEBSTER CITY IA ASSISTED LIVING TENANT, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Kevin Maddron

	Name:	 	Kevin Maddron
	Title:	 	Senior Vice President

  
 51

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