Document:

Ex-10.6

 Exhibit 10.6 

EMPLOYEE MATTERS AGREEMENT 
 BY AND
BETWEEN THE ENSIGN GROUP, INC. AND 
 CARETRUST REIT, INC. 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT (this “Agreement”), dated as of May 30, 2014 is by and between THE ENSIGN
GROUP, INC., a Delaware corporation (“Ensign”) and CARETRUST REIT, INC., a Maryland corporation and a direct, wholly owned subsidiary of Ensign (“CareTrust”). Ensign and CareTrust are sometimes referred to herein
individually as a “Party,” and collectively as the “Parties.” 
 WHEREAS, Ensign and CareTrust have
entered into a Separation and Distribution Agreement, dated as of May 23, 2014 (the “Separation Agreement”), pursuant to which Ensign will reorganize its assets and liabilities into two companies: (i) Ensign which,
following consummation of the transaction contemplated by the Separation Agreement, will own and conduct the Ensign Business; and (ii) CareTrust which, following consummation of the transaction contemplated by the Separation Agreement, will own
and conduct the CareTrust Business; and 
 WHEREAS, as contemplated by the Separation Agreement, Ensign and CareTrust desire to enter into
this Agreement to provide for the allocation of assets, liabilities and responsibilities with respect to certain matters relating to employees (including employee compensation and benefit plans and programs) between them. 

NOW, THEREFORE, the Parties, intending to be legally bound, agree as follows: 

ARTICLE I 

DEFINITIONS 

Capitalized terms used but not defined herein shall have the respective meanings ascribed to them in the Separation Agreement. For purposes of
this Agreement the following terms shall have the following meanings: 
 1.1 “CareTrust 401(k) Plan” means the tax-qualified
401(k) defined contribution savings plan to be established by CareTrust or a CareTrust Group member prior to the Effective Time. 
 1.2
“CareTrust Employee,” means any individual who, as of the Effective Time, is either actively employed by or then on a short-term leave of absence from CareTrust or a CareTrust Group member (including maternity, paternity, family,
sick, short-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and other approved leaves) or who is so employed by Ensign or an
Ensign Group member and who is primarily engaged in providing services to the CareTrust Business as of the date hereof. A list of the CareTrust Employees is set forth on Schedule 1.2. 

1.3 “CareTrust Health and Welfare Plans” has the meaning set forth in Section 4.1. 

  
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 1.4 “CareTrust Incentive Award Plan” means the CareTrust REIT, Inc. and CTR
Partnership, L.P. Incentive Award Plan adopted or to be adopted by CareTrust and CTR Partnership, L.P. prior to the Effective Time. 
 1.5
“CareTrust Participant” means any individual who is a CareTrust Employee or a Former CareTrust Employee, and any beneficiary, dependent, or alternate payee of such individual, as the context requires. 

1.6 “Effective Time” means 11:59 p.m. (Pacific time), on May 31, 2014. 

1.7 “Ensign Defined Contribution Plan” means the Ensign Services, Inc. 401(k) Retirement Savings Plan. 

1.8 “Ensign Employee” means any individual who, as of the Effective Time, is either actively employed by or then on a leave
of absence from Ensign or an Ensign Group member (including maternity, paternity, family, sick, short-term or long-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and
leave under the Family Medical Leave Act and other approved leaves), but does not include any CareTrust Employee. 
 1.9 “Ensign
Equity-Based Plans” means The Ensign Group, Inc. 2001 Stock Option, Deferred Stock and Restricted Stock Plan, The Ensign Group, Inc. 2005 Stock Incentive Plan and The Ensign Group, Inc. 2007 Omnibus Incentive Plan, each as amended from time
to time. 
 1.10 “Ensign Health and Welfare Plans” means the health and welfare plans sponsored and maintained by Ensign or
any Ensign Group member immediately prior to the Effective Time which provide group health, life, dental, accidental death and dismemberment, health care reimbursements, dependent care assistance and disability benefits. 

1.11 “Ensign Option” means an option to purchase shares of Ensign Common Stock granted by Ensign prior to the Effective Time
pursuant to an Ensign Equity-Based Plan. 
 1.12 “Ensign Participant” means any individual who is an Ensign Employee or a
Former Ensign Employee, and any beneficiary, dependent, or alternate payee of such individual, as the context requires. 
 1.13
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. Reference to a specific provision of ERISA also includes any proposed, temporary, or final regulation in force under that provision. 

1.14 “Former Ensign Employee” means any individual other than a Former CareTrust Employee whose employment with either Party
or any of its respective Subsidiaries and Affiliates terminated for any reason before the Effective Time. 
 1.15 “Former CareTrust
Employee,” means any individual whose employment with either Party or any of its respective Subsidiaries and Affiliates terminated for any reason before the Effective Time, and who was primarily engaged in providing services to the
CareTrust Business as of the date of his or her termination of employment. 

  
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 1.16 “Participating Company” means (a) Ensign and (b) any Person
(other than an individual) that Ensign has approved for participation in, and which is participating in, a Plan. 
 1.17
“Plan,” when immediately preceded by “Ensign,” means any plan, policy, program, payroll practice, on-going arrangement, contract, trust, insurance policy or other agreement or funding vehicle (including an Ensign Health
and Welfare Plan) for which the eligible classes of participants include employees or former employees of Ensign or an Ensign Group member (which may include employees of CareTrust Group members prior to the Effective Time), and when immediately
preceded by “CareTrust,” means any plan, policy, program, payroll practice, on-going arrangement, contract, trust, insurance policy or other agreement or funding vehicle (including a CareTrust Health and Welfare Plan) for which the
eligible classes of participants are limited to employees or former employees (and their eligible dependents) of CareTrust or a CareTrust Group member, but no other Ensign Group member. 

1.18 “Purging Distribution” means the dividend CareTrust will declare to its stockholders, in connection with its election to
be taxed as a real estate investment trust (a “REIT”) for U.S. federal income tax purposes, to distribute any accumulated earnings and profits relating to its real property assets and attributable to any pre-REIT years to comply
with certain REIT qualification requirements. 
 1.19 “Restricted Stock Award,” when immediately preceded by
“Ensign,” means a share of Ensign Common Stock granted by Ensign prior to the Effective Time pursuant to an Ensign Equity-Based Plan which is subject to vesting and forfeiture restrictions and when immediately preceded by
“CareTrust,” means a share of CareTrust Common Stock, which is granted pursuant to the CareTrust Incentive Award Plan as part of the adjustment to Ensign Restricted Stock Awards as set forth in Section 5.2 which is subject to vesting
and forfeiture restrictions. 
 ARTICLE II 

TRANSFER OF CARETRUST EMPLOYEES; GENERAL PRINCIPLES 

2.1 Transfer of Employment of Certain CareTrust Employees. Ensign and CareTrust will cause the employment of each CareTrust Employee
who is not employed by a CareTrust Group member as of the date hereof to be transferred to a CareTrust Group member prior to the Effective Time. Such individuals are separately identified on Schedule 1.2. 

2.2 Assumption and Retention of Liabilities. Ensign and CareTrust intend that employment-related Liabilities associated with Ensign
Participants are to be retained or assumed by Ensign or another Ensign Group member, and employment-related Liabilities associated with CareTrust Participants are to be assumed by CareTrust or another CareTrust Group member, in each case, except as
specifically set forth herein. Accordingly, as of the Effective Time: 
 (a) Ensign or another member of the Ensign Group hereby retains or
assumes and agrees to pay, perform, fulfill, and discharge, except as expressly provided in this Agreement, (i) all Liabilities arising under or related to Ensign Plans, (ii) all employment or service-related Liabilities with respect to
(A) all Ensign Participants and (B) any individual who 

  
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is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll
worker or in any other employment or similar relationship primarily connected to Ensign or another Ensign Group member and (iii) any Liabilities expressly transferred to an Ensign Group member under this Agreement; and 

(b) CareTrust or another member of the CareTrust Group hereby retains or assumes and agrees to pay, perform, fulfill, and discharge, except as
expressly provided in this Agreement, (i) all Liabilities arising under or related to CareTrust Plans from and after the Effective Time, (ii) all employment or service-related Liabilities relating to periods from and after the Effective
Time with respect to (A) all CareTrust Participants and (B) any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker,
incidental worker, or non-payroll worker or in any other employment or similar relationship primarily connected to CareTrust or another CareTrust Group member and (iii) any Liabilities expressly transferred to a CareTrust Group member under
this Agreement. 
 2.3 CareTrust Participation in the Ensign Plans. Effective as of the Effective Time, each CareTrust Group member
shall cease to be a Participating Company in any Ensign Plan, and Ensign and CareTrust shall take all necessary action before the Effective Time to effectuate such cessation as a Participating Company. 

2.4 Sponsorship of the CareTrust Plans. Effective no later than immediately prior to the Effective Time, Ensign and CareTrust shall
take such actions (if any) as are required to cause CareTrust or another CareTrust Group member to assume sponsorship of, and all Liabilities with respect to, each CareTrust Plan. 

2.5 No Duplication of Benefits; Service and Other Credit. Ensign and CareTrust shall adopt, or cause to be adopted, all reasonable and
necessary amendments and procedures to prevent CareTrust Participants from receiving duplicative benefits from the Ensign Plans and the CareTrust Plans. With respect to CareTrust Employees, each CareTrust Plan shall provide that for purposes of
determining eligibility to participate, vesting, and entitlement to benefits (but not for accrual of pension benefits under any defined benefit pension plan), service prior to the Effective Time with an Ensign Group member shall be treated as
service with the applicable CareTrust Group member. Such service also shall apply for purposes of satisfying any waiting periods, evidence of insurability requirements, or the application of any preexisting condition limitations under any CareTrust
Plan. Each CareTrust Plan shall, to the extent practicable, waive pre-existing condition limitations with respect to CareTrust Employees. CareTrust shall honor any deductible, co-payment and out-of-pocket maximums incurred by the CareTrust Employees
and their eligible dependents under the Ensign Plans in which they participated immediately prior to the Effective Time during the portion of the calendar year prior to the Effective Time in satisfying any deductibles, co-payments or out-of-pocket
maximums under the CareTrust Plans in which they are eligible to participate after the Effective Time in the same plan year in which such deductibles, co-payments or out-of-pocket maximums were incurred. 

  
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 2.6 Reimbursements. From time to time after the Effective Time, the Parties shall promptly
reimburse one another, upon reasonable request of the Party requesting reimbursement and the presentation by such Party of such substantiating documentation as the other Party shall reasonably request, for the cost of any Liabilities satisfied or
assumed by the Party requesting reimbursement or its Affiliates that are made pursuant to this Agreement, the responsibility of the other Party or any of its Affiliates. 

2.7 Approval of Plan. (i) Prior to the Effective Time, Ensign shall cause CareTrust to adopt the CareTrust Incentive Award Plan
and (ii) at or prior to the Effective Time, Ensign and CareTrust shall take all actions as may be necessary to approve the CareTrust Incentive Award Plan in order to satisfy the requirements of the applicable rules and regulations of the
NASDAQ. 
 2.8 Delivery of Shares; Registration Statement. From and after the Effective Time, CareTrust shall have sole
responsibility for delivery of shares of CareTrust Common Stock pursuant to awards issued under a CareTrust Plan in satisfaction of any obligations to deliver such shares under the CareTrust and/or Ensign Plans (including delivery to Ensign
Employees and Former Ensign Employees) and shall do so without compensation from any Ensign Group member. CareTrust shall cause a registration statement on Form S-8 (or other appropriate form) to be filed with respect to such issued or issuable
shares as soon as practicable following the Effective Time and shall cause such registration to remain in effect for so long as there may be an obligation to deliver CareTrust shares under such CareTrust and/or Ensign Plans. Ensign shall use
commercially reasonable efforts to assist CareTrust in completing such registration. CareTrust and Ensign shall cooperate to establish a procedure whereby the other Party shall be promptly informed of the obligation to deliver shares to a current or
Former CareTrust Employee or an Ensign Employee, as the case may be. 
 ARTICLE III 

DEFINED CONTRIBUTION PLAN 

3.1 401(k) Plan. 
 (a)
Establishment of Plan and Trust. Ensign and CareTrust shall adopt or cause to be adopted the CareTrust 401(k) Plan and any trust agreements or other plan documents reasonably necessary and shall cause trustees to be appointed for such
plan. Such actions shall be completed as soon as practicable following the Effective Time. Such plan shall accept rollovers from the Ensign Defined Contribution Plan in accordance with its terms and applicable Law. 

(b) Service Crediting. In determining whether a CareTrust Employee is vested in his or her account under the CareTrust 401(k)
Plan, the CareTrust 401(k) Plan shall credit each CareTrust Employee with all the individual’s service credited under the Ensign Defined Contribution Plan. 

  
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 ARTICLE IV 

HEALTH AND WELFARE PLANS 

4.1 Cessation of Participation in Ensign Health and Welfare Plans. As soon as practicable following the Effective Time, CareTrust shall
establish health and welfare plans (the “CareTrust Health and Welfare Plans”) for the CareTrust Employees. As of the Effective Time, CareTrust Employees shall cease to participate in the Ensign Health and Welfare Plans. 

4.2 Allocation of Health and Welfare Plan Liabilities. All outstanding Liabilities relating to, arising out of, or resulting from
health and welfare coverage or claims incurred by or on behalf of CareTrust Employees or their covered dependents under the Ensign Health and Welfare Plans on or before the Effective Time shall be assumed by CareTrust upon the Effective Time. 

4.3 Vacation and Paid Time Off. As of the Effective Time, the applicable CareTrust Group Member shall credit each CareTrust Employee
with the unused vacation days and personal and sickness days that such individual has accrued immediately prior to the Effective Time in accordance with the vacation and personnel policies applicable to such employee immediately prior to the
Effective Time; provided, however, that with respect to any CareTrust Employee who does not consent to such treatment in writing, such individual will instead receive a cash payment from Ensign immediately prior to the Effective Time with respect
thereto. To the extent that any such time is credited by CareTrust rather than a cash payment being made with respect thereto by Ensign, Ensign shall provide CareTrust with a lump sum cash amount no later than thirty (30) days following the
Effective Time with a value equal to such credited time. 
 ARTICLE V 

EQUITY COMPENSATION AND OTHER BENEFITS 

5.1 Awards under the Ensign Equity-Based Plans. The treatment of the Ensign Options and Ensign Restricted Stock Awards as set forth
below shall be subject to Section 2.04 of the Tax Matters Agreement between the parties, dated as of the date hereof. 
 (a)
Options. No Options will be held by any CareTrust Employee or Former CareTrust Employee as of the Distribution Date, other than then-vested Ensign Options which remain exercisable for a period of time following such individual’s
termination of employment with Ensign in accordance with the terms of such Options. Each Ensign Option that is outstanding immediately prior to the Distribution Date shall be adjusted in accordance with the equitable adjustment provisions set forth
in the Ensign Equity Plans. 
 (b) Restricted Stock. 

(i) Restricted Stock. No Restricted Stock Awards will be held by any CareTrust Employee or Former CareTrust
Employee as of the Distribution Date. Upon the Effective Time, holders of Ensign Restricted Stock Awards will become entitled to CareTrust Restricted Stock Awards equal to a number of shares of CareTrust Common Stock to which all other holders of
shares of Ensign Common Stock become entitled pursuant to the Distribution. 

  
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 (ii) Restricted Stock Award Terms. 

(1) Service. Each Ensign Restricted Stock Award shall be subject to the same terms and conditions as set forth
in the original Ensign Restricted Stock Award, except as set forth below. Each CareTrust Restricted Stock Award issued pursuant to this Section 5.2(b) shall be subject to the same terms and conditions as set forth in the related Ensign
Restricted Stock Award before the Effective Time, except as set forth below. For purposes of the vesting and termination provisions of the CareTrust Restricted Stock Awards, continued service with an Ensign Group member shall be considered to be
continued service with CareTrust. 
 (2) Purging Distribution. Upon declaration of the Purging Distribution,
holders of CareTrust Restricted Stock Awards will be entitled to receive the Purging Distribution with respect to the CareTrust Common Stock subject to such award on the same date or dates that the Purging Distribution is payable on CareTrust Common
Stock to stockholders of CareTrust generally. 
 (3) Partial Interests in Shares. To the extent that any
adjustment described in this Section 5.2(b) results in any fractional interest in shares, such fractional interest shall be rounded down to the nearest whole share. No fractional interests shall be payable in cash or otherwise. 

(c) Administration. Each of Ensign and CareTrust shall establish an appropriate administration system in order to handle
exercises and delivery of shares in an orderly manner and provide reasonable levels of service for equity award holders. 
 (d) No
Effect on Subsequent Awards. The provisions of this Section 5.2 shall have no effect on the terms and conditions of equity and equity-based awards granted following the Effective Time by Ensign or CareTrust. 

ARTICLE VI 
 GENERAL
AND ADMINISTRATIVE 
 6.1 Sharing of Participant Information. To the maximum extent permitted under applicable Law, Ensign
and CareTrust shall share, and shall cause each member of its respective Group to share, with each other and their respective agents and vendors all participant information reasonably necessary for the efficient and accurate administration of each
of the Ensign Plans and the CareTrust Plans. Ensign and CareTrust and their respective authorized agents shall, subject to applicable laws on confidentiality, be given reasonable and timely access to, and may make copies of, all information relating
to the subjects of this Agreement in the custody of the other Party, to the extent necessary for such administration. Until the Effective Time, all participant information shall be provided in the manner and medium applicable to Participating
Companies in the Ensign Plans generally, and thereafter until the time at which the Parties subsequently determine, all participant information shall be provided in a manner and medium that are compatible with the data processing systems of Ensign
as in effect as of the Effective Time, unless otherwise agreed to by Ensign and CareTrust. 

  
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 6.2 Audit Rights with Respect to Information Provided. Each of Ensign and CareTrust, and
their duly authorized representatives, shall have the right to conduct reasonable audits with respect to all information provided to it by the other Party. The Parties shall cooperate to determine the procedures and guidelines for conducting audits
under this Section 6.2, which shall require reasonable advance notice by the auditing Party. The auditing Party shall have the right to make copies of any records at its expense, subject to applicable Law. 

6.3 Fiduciary Matters. Ensign and CareTrust each acknowledge that actions required to be taken pursuant to this Agreement may be
subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith determination (as
supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own
fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 

6.4 Consent of Third Parties. If any provision of this Agreement is dependent on the consent of any third party (such as a vendor or
Governmental Authority) and such consent is withheld, Ensign and CareTrust shall use commercially reasonable efforts to implement the applicable provisions of this Agreement to the full extent practicable. If any provision of this Agreement cannot
be implemented due to the failure of such third party to consent, Ensign and CareTrust shall negotiate in good faith to implement the provision in a mutually satisfactory manner. The phrase “commercially reasonable efforts” as used herein
shall not be construed to require the incurrence of any non-routine or unreasonable expense or liability or the waiver of any right. 
 6.5
Subsequent Transfers of Employment. To the extent that the employment of any individuals transfers between any Ensign Group member and any CareTrust Group member in the twenty four (24)-month period following the Effective Time, the Parties
shall use their reasonable efforts to effect the provisions of this Agreement with respect to the compensation and benefits of such individuals following such transfer, it being understood that (i) it may not be possible to replicate the effect
of such provisions under such circumstances and (ii) neither Ensign nor CareTrust shall be bound by the provisions of this Section 6.5 to assume any Liabilities or transfer any assets. Notwithstanding to foregoing, for compensation subject
to the provisions of Section 409A of the Code, any such subsequent transfer shall be a separation from service from the applicable employer for purposes of such compensation, and the consequences of such separation from service shall be
determined in accordance with the terms of the applicable plan or agreement. 
 ARTICLE VII 

GOVERNING LAW; DISPUTE RESOLUTION 

7.1 Governing Law. This Agreement and the legal relations between the Parties hereto shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the conflict of laws rules thereof to the extent such rules would require the application of the law of another jurisdiction. 

  
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 7.2 Dispute Resolution. The provisions of Article X of the Separation
Agreement shall apply, mutatis mutandis, to all disputes, controversies or claims (whether arising in contract, tort or otherwise) that may arise out of or relate to, or arise under or in connection with this Agreement or the transactions
contemplated hereby. 
 ARTICLE VIII 

MISCELLANEOUS 
 8.1
Further Assurances. Subject to the limitations or other provisions of this Agreement, (a) each Party shall, and shall cause the other members of its Group to, use commercially reasonable efforts (subject to, and in accordance with
applicable Law) to take promptly, or cause to be taken promptly, all actions, and to do promptly, or cause to be done promptly, and to assist and cooperate with the other Party in doing, all things reasonably necessary, proper or advisable to carry
out the intent and purposes of this Agreement, including using commercially reasonable efforts to perform all covenants and agreements herein applicable to such Party or any member of its Group and (b) neither Party will, nor will either Party
allow any other member of its Group to, without the prior written consent of the other Party, take any action which would reasonably be expected to prevent or materially impede, interfere with or delay the provision of any Services hereunder.
Without limiting the generality of the foregoing, where the cooperation of third parties would be necessary in order for a Party to completely fulfill its obligations under this Agreement, such Party shall use commercially reasonable efforts to
cause such third parties to provide such cooperation. 
 8.2 Amendments and Waivers. 

(a) Subject to Section 11.1 of the Separation Agreement and Section 8.12 of this Agreement, this Agreement may not be amended except
by an agreement in writing signed by both Parties. 
 (b) Any term or provision of this Agreement may be waived, or the time for its
performance may be extended, by the Party entitled to the benefit thereof and any such waiver shall be validly and sufficiently given for the purposes of this Agreement if it is in writing signed by an authorized representative of such Party. No
delay or failure in exercising any right, power or remedy hereunder shall affect or operate as a waiver thereof; nor shall any single or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy
preclude any further exercise thereof or of any other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive of any rights or remedies that either Party would otherwise have. 

8.3 Entire Agreement. This Agreement, the Separation Agreement, the other Ancillary Agreements, and the Exhibits and Schedules
referenced herein and therein and attached hereto or thereto, constitute the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersede all prior negotiations, agreements, commitments, writings,
courses of dealing and understandings with respect to the subject matter hereof. 

  
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 8.4 Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and
their permitted successors and assigns and nothing in this Agreement, express or implied, (i) is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of
this Agreement, (ii) shall confer any right to employment or continued employment for any period or terms of employment, (iii) be interpreted to prevent or restrict the Parties from modifying or terminating any Ensign Plan or CareTrust
Plan or the employment or terms of employment of any Ensign Employee or CareTrust Employee or (iv) shall establish, modify or amend any Ensign Plan or CareTrust Plan covering an Ensign Participant, CareTrust Participant, any collective
bargaining agreements, national collective bargaining agreements, or the terms and conditions of employment applicable to an Ensign Employee or a CareTrust Employee. 

8.5 Notices. All notices, requests, permissions, waivers and other communications hereunder shall be provided in accordance with the
provisions of Section 12.8 of the Separation Agreement. 
 8.6 Counterparts; Electronic Delivery. This Agreement may be executed
in multiple counterparts, each of which when executed shall be deemed to be an original, but all of which together shall constitute one and the same agreement. Execution and delivery of this Agreement or any other documents pursuant to this
Agreement by facsimile or other electronic means shall be deemed to be, and shall have the same legal effect as, execution by an original signature and delivery in person. 

8.7 Severability. If any term or other provision of this Agreement or the Exhibits attached hereto is determined by a nonappealable
decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are
fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

8.8 Assignability; Binding Effect. The rights and obligations of each Party under this Agreement shall not be assignable, in whole or
in part, directly or indirectly, whether by operation of law or otherwise, by such Party without the prior written consent of the other Party (such consent not to be unreasonably withheld, conditioned or delayed) and any attempt to assign any rights
or obligations under this Agreement without such consent shall be null and void. Notwithstanding the foregoing, either Party may assign its rights and obligations under this Agreement to any of their respective Affiliates provided that no such
assignment shall release such assigning Party from any liability or obligation under this Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns. 

  
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 8.9 Construction. This Agreement shall be construed as if jointly drafted by the Parties
and no rule of construction or strict interpretation shall be applied against either Party. The Parties represent that this Agreement is entered into with full consideration of any and all rights which the Parties may have. The Parties have relied
upon their own knowledge and judgment. The Parties have had access to independent legal advice, have conducted such investigations they thought appropriate, and have consulted with such other independent advisors as they deemed appropriate regarding
this Agreement and their rights and asserted rights in connection therewith. The Parties are not relying upon any representations or statements made by the other Party, or such other Party’s employees, agents, representatives or attorneys,
regarding this Agreement, except to the extent such representations are expressly set forth or incorporated in this Agreement. The Parties are not relying upon a legal duty, if one exists, on the part of the other Party (or such other Party’s
employees, agents, representatives or attorneys) to disclose any information in connection with the execution of this Agreement or its preparation, it being expressly understood that neither Party shall ever assert any failure to disclose
information on the part of the other Party as a ground for challenging this Agreement. 
 8.10 Performance. Each Party shall cause to
be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary or Affiliate of such Party. 

8.11 Title and Headings. Titles and headings to Sections and Articles are inserted for the convenience of reference only and are not
intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 8.12 Termination. Notwithstanding any
provision to the contrary, this Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of Ensign without the prior approval of any Person, including CareTrust. In the event of such termination, this
Agreement shall become void and no Party, or any of its officers and directors shall have any liability to any Person by reason of this Agreement. After the Effective Time, this Agreement may not be terminated except by an agreement in writing
signed by each of the Parties. 
 8.13 Survival of Agreements. Except as otherwise contemplated by this Agreement, any covenants and
agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms. 

8.14 Effective Time. This Agreement shall be effective as of 11:59 p.m. (Pacific time) on May 31, 2014. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date
first written above by their respective duly authorized officers. 
  

			
	THE ENSIGN GROUP, INC.
		
	By:	 	/s/ Christopher R. Christensen
		 	Name: Christopher R. Christensen
		 	Title: President and Chief Executive Officer

  

			
	CARETRUST REIT, INC.
		
	By:	 	/s/ Gregory K. Stapley
		 	Name: Gregory K. Stapley
		 	Title: President and Chief Executive Officer

  
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 Schedule 1.2 
  

											
	 First Name
	  	 Last Name
	  	 Business Title
	  	 Location
	  	 City
	  	 State

	 Gregory
	  	Stapley	  	President and Chief Executive Officer	  	CareTrust REIT-HQ	  	San Juan Capistrano	  	CA
	 William
	  	Wagner	  	Chief Financial Officer, Treasurer and Secretary	  	CareTrust REIT-HQ	  	San Juan Capistrano	  	CA
	 David
	  	Sedgwick	  	Vice President Operations	  	CareTrust REIT-HQ	  	Hunt Valley	  	MD
	 Barbara
	  	Adds	  	Receptionist	  	Lakeland Hills Senior Living	  	Rockwall	  	TX
	 Bobbie
	  	Burnett	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Lorisa
	  	Cogan	  	Cook	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Keith
	  	Collins	  	Receptionist	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Marvisha
	  	Davis	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Shewhate
	  	Genretensai	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Stacy
	  	Glover	  	Receptionist	  	Lakeland Hills Senior Living	  	Desoto	  	TX
	 Juan
	  	Gonzalez	  	Cook	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Candi
	  	Grimwood	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Mesquite	  	TX
	 Glen
	  	Hawkins	  	Driver	  	Lakeland Hills Senior Living	  	Mesquite	  	TX
	 Michael
	  	Hubbard	  	Cook	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Jermaine
	  	Kennedy	  	Maintenance Staff	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Vickie
	  	Malone	  	Housekeeping Staff	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Courtney
	  	Perez	  	Receptionist	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Mary
	  	Potter	  	Housekeeping Staff	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Guadencia
	  	Rodriguez	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Mesquite	  	TX
	 Irene
	  	Romero	  	Housekeeping Staff	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Rosalina
	  	Rubio	  	Cook	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Stephanie
	  	Simpson	  	Activities Supervisor	  	Lakeland Hills Senior Living	  	Red Oak	  	TX
	 Maria
	  	Umanzor	  	Dietary Aide	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Jane
	  	Villarreal	  	Receptionist	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Pamela
	  	Walker	  	Property Manager	  	Lakeland Hills Senior Living	  	Irving	  	TX
	 Benny
	  	Wilson	  	Maintenance Staff	  	Lakeland Hills Senior Living	  	Dallas	  	TX
	 Barbara
	  	Cruz	  	Receptionist	  	St. Joseph Senior Living	  	Salt Lake City	  	UT
	 Doreen
	  	Echeverria	  	Property Manager	  	St. Joseph Senior Living	  	Kearns	  	UT
	 Chrissy
	  	Hayes	  	Receptionist	  	St. Joseph Senior Living	  	Wvc	  	UT
	 Erica
	  	Kornman	  	Administrative Support	  	St. Joseph Senior Living	  	Sandy	  	UT
	 Bobby
	  	Martinez	  	Maintenance Staff	  	St. Joseph Senior Living	  	Ogden	  	UT
	 Gladys
	  	Medina	  	Receptionist	  	St. Joseph Senior Living	  	Magna	  	UT
	 Hortensia
	  	Vergara	  	Housekeeping Staff	  	St. Joseph Senior Living	  	Salt Lake City	  	UT
	 Donna
	  	Plemons	  	Property Manager	  	The Cottages At Golden Acres	  	Dallas	  	TX
	 Guadalupe
	  	Rivas	  	Administrative Support	  	The Cottages At Golden Acres	  	Mesquite	  	TX
	 Russell Mark
	  	Wade	  	Maintenance Staff	  	The Cottages At Golden Acres	  	dallas	  	TX

  
 14EX-10.7

 Exhibit 10.7 

CONTRIBUTION AGREEMENT 

DATED AS OF MAY 30, 2014 

BY AND AMONG 
 CTR
PARTNERSHIP, L.P., 
 CARETRUST GP, LLC, 

CARETRUST REIT, INC. 
 AND

 THE ENSIGN GROUP, INC. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	Article I CONTRIBUTION	  	 	2	  
	 Section 1.01
	 	Contribution of Interests	  	 	2	  
	 Section 1.02
	 	Consideration to CareTrust and the General Partner	  	 	2	  
	 Section 1.03
	 	Consideration to Ensign	  	 	2	  
	 Section 1.04
	 	Further Action	  	 	3	  
	 Section 1.05
	 	Tax Treatment	  	 	3	  
		
	Article II REPRESENTATIONS AND WARRANTIES OF ENSIGN	  	 	3	  
	 Section 2.01
	 	Organization and Authority	  	 	3	  
	 Section 2.02
	 	Due Authorization	  	 	3	  
	 Section 2.03
	 	Consents and Approvals	  	 	3	  
	 Section 2.04
	 	No Violation	  	 	3	  
	 Section 2.05
	 	Non-Foreign Person	  	 	4	  
	 Section 2.06
	 	Solvency	  	 	4	  
	 Section 2.07
	 	Litigation	  	 	4	  
	 Section 2.08
	 	Absence of Registration	  	 	4	  
	 Section 2.09
	 	No Injunction	  	 	4	  
	 Section 2.10
	 	Consents, Etc.	  	 	4	  
	 Section 2.11
	 	No Brokers	  	 	4	  
	 Section 2.12
	 	Ownership of Interests	  	 	4	  
	 Section 2.13
	 	Organization and Authority of the Companies	  	 	5	  
	 Section 2.14
	 	Taxes	  	 	5	  
	 Section 2.15
	 	Company Litigation	  	 	5	  
	 Section 2.16
	 	Compliance With Laws	  	 	5	  
	 Section 2.17
	 	Eminent Domain	  	 	5	  
	 Section 2.18
	 	Licenses and Permits	  	 	5	  
	 Section 2.19
	 	Real Property	  	 	6	  
	 Section 2.20
	 	Environmental Compliance	  	 	6	  
	 Section 2.21
	 	Trademarks and Tradenames; Proprietary Rights	  	 	6	  
	 Section 2.22
	 	Condition of Property	  	 	6	  
	 Section 2.23
	 	Leases	  	 	7	  
	 Section 2.24
	 	Tangible Personal Property	  	 	7	  
	 Section 2.25
	 	Service Contracts	  	 	7	  
	 Section 2.26
	 	Existing Loans	  	 	7	  
	 Section 2.27
	 	Real Property Taxes	  	 	7	  
	 Section 2.28
	 	Insurance	  	 	8	  
	 Section 2.29
	 	Exclusive Representations	  	 	8	  
		
	Article III REPRESENTATIONS AND WARRANTIES OF THE CARETRUST ENTITIES	  	 	8	  
	 Section 3.01
	 	Organization and Authority	  	 	8	  
	 Section 3.02
	 	Due Authorization	  	 	8	  
	 Section 3.03
	 	Consents and Approvals	  	 	8	  
	 Section 3.04
	 	No Violation	  	 	8	  
	 Section 3.05
	 	Validity of CareTrust Common Stock	  	 	9	  
	 Section 3.06
	 	Litigation	  	 	9	  
	 Section 3.07
	 	Limited Activities	  	 	9	  
	 Section 3.08
	 	No Other Representations or Warranties	  	 	9	  

  
 i 

							
	Article IV INDEMNIFICATION; DISPUTE RESOLUTION	  	 	9	  
	 Section 4.01
	 	Indemnification	  	 	9	  
	 Section 4.02
	 	Dispute Resolution	  	 	9	  
		
	Article V DEFINITIONS	  	 	9	  
	 Section 5.01
	 	Definitions	  	 	9	  
		
	Article VI GENERAL PROVISIONS	  	 	12	  
	 Section 6.01
	 	Amendments and Waivers	  	 	12	  
	 Section 6.02
	 	Entire Agreement	  	 	12	  
	 Section 6.03
	 	Survival of Agreements	  	 	12	  
	 Section 6.04
	 	Third-Party Beneficiaries	  	 	12	  
	 Section 6.05
	 	Notices	  	 	12	  
	 Section 6.06
	 	Counterparts; Electronic Delivery	  	 	13	  
	 Section 6.07
	 	Severability	  	 	13	  
	 Section 6.08
	 	Assignability; Binding Effect	  	 	13	  
	 Section 6.09
	 	Governing Law	  	 	14	  
	 Section 6.10
	 	Construction	  	 	14	  
	 Section 6.11
	 	Performance	  	 	14	  
	 Section 6.12
	 	Titles and Headings	  	 	14	  
	 Section 6.13
	 	Exhibits	  	 	14	  
	 Section 6.14
	 	Effective Time	  	 	14	  

 EXHIBITS 
 Exhibit
A:      Property Companies and Properties 
 Exhibit B:      Operating Companies and Facilities

 Exhibit C:      Permitted Liens 

APPENDIX A – DISCLOSURE SCHEDULE 

  
 ii 

 CONTRIBUTION AGREEMENT 

THIS CONTRIBUTION AGREEMENT is made and entered into as of May 30, 2014 (this “Agreement”), by and among The Ensign
Group, Inc., a Delaware corporation (“Ensign”), CTR Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), CareTrust GP, LLC, a Delaware limited liability company (the “General
Partner”), and CareTrust REIT, Inc., a Maryland corporation (“CareTrust,” and together with the Operating Partnership and the General Partner, the “CareTrust Entities”). Ensign, CareTrust, the General
Partner and the Operating Partnership are sometimes referred to herein, individually, as a “Party” and, collectively, as the “Parties.” Capitalized terms used but not otherwise defined herein shall have the
respective meanings set forth in Article V. 
 RECITALS 

WHEREAS, Ensign and CareTrust have entered into a Separation and Distribution Agreement, dated as of May 23, 2014 (the
“Separation Agreement”), which provides for (i) the reorganization (the “Reorganization”) of the assets and liabilities of Ensign into two companies: (a) Ensign, which will own and conduct the Ensign
Business (as defined in the Separation Agreement); and (b) CareTrust, which will own and conduct the CareTrust Business (as defined in the Separation Agreement); and (ii) the distribution (the “Distribution”) to the
holders of Ensign’s outstanding shares of common stock, on a pro rata basis, of all of the outstanding shares of common stock of CareTrust so that, following such distribution, Ensign and CareTrust will be two independent, publicly traded
companies; 
 WHEREAS, Ensign owns all of the outstanding interests (the “Property Company Interests”) in each of the
companies listed on Exhibit A hereto (each, a “Property Company”), each of which owns the property or properties set forth opposite its name on Exhibit A (each, a “Property”); 

WHEREAS, Ensign owns all of the outstanding interests (the “Operating Company Interests”) in each of the companies listed on
Exhibit B hereto (each, an “Operating Company”), each of which operates the independent living facility set forth opposite its name on Exhibit B (each, a “Facility”); 

WHEREAS, pursuant to the Separation Agreement, as part of the Reorganization, Ensign desires to contribute the Property Company Interests and
the Operating Company Interests (collectively, the “Interests”) to CareTrust in exchange for (i) 22,442,878 shares of common stock, par value $0.01 per share (“CareTrust Common Stock”), of CareTrust,
(ii) the assumption of certain liabilities of Ensign and (iii) $221,449,256.00 in cash; 
 WHEREAS, CareTrust desires to
contribute (i) 1% of the Interests to the General Partner, which the General Partner desires to contribute to the Operating Partnership in exchange for units of limited partnership interest in the Operating Partnership (“OP
Units”) and $2,214,492.56 in cash (which cash would be distributed to CareTrust), and (ii) 99% of the Interests to the Operating Partnership in exchange for OP Units, and $219,234,763.44 in cash; and 

WHEREAS, to avoid the inconvenience and expense of multiple transfers, the Parties desire that (i) Ensign contribute all of the Interests
directly to the Operating Partnership (the “Contribution”), and (ii) the Operating Partnership transfer $221,449,256.00 in cash directly to Ensign, in each case, on the terms and subject to the conditions set forth herein. 

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and other terms contained in this Agreement,
the Parties, intending to be legally bound hereby, agree as follows: 

  
 1 

 ARTICLE I 

CONTRIBUTION 

Section 1.01 Contribution of Interests. 

(a) Ensign hereby agrees to contribute the Interests to CareTrust. CareTrust hereby agrees to contribute 1% of the Interests to the General
Partner, and 99% of the Interests to the Operating Partnership. The General Partner hereby agrees to contribute such 1% of the Interests to the Operating Partnership. In order to avoid the inconvenience and expense of multiple transfers,
(i) CareTrust hereby directs Ensign to transfer, on its behalf, 99% of the Interests directly to the Operating Partnership, and (ii) CareTrust and the General Partner hereby direct Ensign to transfer, on their behalf, 1% of the Interests
directly to the Operating Partnership. 
 (b) (i) Ensign hereby contributes, assigns, transfers, conveys and delivers to the Operating
Partnership, and the Operating Partnership hereby acquires and accepts from Ensign, all of Ensign’s right, title and interest in and to the Interests, together with all rights and claims related thereto as the sole member of each of the
Property Companies and Operating Companies (collectively, the “Companies”), and (ii) the Operating Partnership hereby (x) assumes any and all obligations and liabilities of Ensign as the owner of the Interests and the sole
member of each of the Companies, whether arising under the limited liability company agreement (each, an “LLC Agreement”) of any of the Companies or otherwise, and (y) is admitted to each of the Companies as its sole member
upon its execution of this Agreement, which signifies its agreement to be bound by the terms and conditions of each of the LLC Agreements. 

(c) Immediately following the effectiveness of the assignment and assumption set forth in Section 1.01(a) above, Ensign shall and
does hereby cease to be a member of each of the Companies and shall and does thereupon cease to have or exercise any right or power as a member of any of the Companies. From and after the date hereof, the Operating Partnership is hereby authorized
to make any changes to any LLC Agreement as it determines, in its sole discretion, are appropriate, without the consent or approval of Ensign. Ensign shall promptly deliver, or cause to be delivered, to the Operating Partnership all books and
records and other indicia of ownership with respect to each Company. 
 Section 1.02 Consideration to CareTrust and the General
Partner. In consideration of the foregoing contribution, the Operating Partnership shall promptly issue to CareTrust 22,218,449.22 OP Units and $219,234,763.44 in cash, and to the General Partner 224,428.78 OP Units and $2,214,492.56 in cash,
which cash the General Partner shall distribute to CareTrust. The issuance of OP Units to CareTrust and the General Partner shall be evidenced by either an amendment to the Operating Partnership’s Agreement of Limited Partnership or by
certificates relating to such OP Units, in either case, as determined by the Operating Partnership, in such form as shall be reasonably acceptable to CareTrust and the General Partner. The OP Units to be issued to CareTrust and the General Partner
pursuant to this Agreement shall have been duly authorized by the Operating Partnership and, when issued against the consideration therefor, shall be validly issued by the Operating Partnership, free and clear of all Liens created by the Operating
Partnership (other than Liens created by the Operating Partnership Agreement). 
 Section 1.03 Consideration to Ensign. In
consideration of the foregoing contribution, CareTrust shall promptly issue to Ensign 22,442,878 shares of CareTrust Common Stock and $221,449,256.00 in cash. The shares of CareTrust Common Stock to be issued to Ensign shall be issued as
uncertificated shares registered in book-entry form. No certificates therefor shall be distributed. CareTrust shall promptly deliver or cause to be delivered to Ensign an account statement reflecting Ensign’s ownership of such shares of
CareTrust Common Stock. 

  
 2 

 Section 1.04 Further Action. Each Party shall make, execute, acknowledge and deliver, or
cause to be made, executed, acknowledged and delivered, any such other documents reasonably requested by the other Parties or reasonably necessary or desirable to consummate the transactions contemplated by this Agreement. 

Section 1.05 Tax Treatment. Ensign and CareTrust each intends that the Reorganization and the Distribution shall be treated as a
reorganization within the meaning of Sections 368(a)(1)(D) and 355 of the Code. Each of Ensign and CareTrust shall treat the Contribution as set forth in this Section 1.05 for all U.S. federal income tax purposes. 

ARTICLE II 

REPRESENTATIONS AND WARRANTIES OF ENSIGN 

Ensign hereby represents and warrants to the CareTrust Entities as follows: 

Section 2.01 Organization and Authority. Ensign is a corporation duly organized, validly existing and in good standing under the Laws
of the State of Delaware. Ensign has all requisite power and authority to enter into this Agreement and to carry out the transactions contemplated hereby, and to own, lease or operate its property and to carry on its business as presently conducted
and, to the extent required under applicable Law, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary, other than in such
jurisdictions where the failure to be so qualified would not have a Material Adverse Effect. 
 Section 2.02 Due Authorization. The
execution, delivery and performance of this Agreement by Ensign has been duly and validly authorized by all necessary action of Ensign. This Agreement constitutes the legal, valid and binding obligation of Ensign, enforceable against Ensign in
accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Law relating to creditors’ rights and general principles of equity. 

Section 2.03 Consents and Approvals. Except as shall have been satisfied on or prior to the date hereof, no consent, waiver, approval
or authorization of, or filing with, any Person or Governmental Authority or under any applicable Law is required to be obtained by Ensign in connection with the execution, delivery and performance of this Agreement, or the transactions contemplated
hereby, except for those consents, waivers, approvals, authorizations or filings, the failure of which to obtain or to file would not have a Material Adverse Effect on Ensign. 

Section 2.04 No Violation. None of the execution, delivery or performance of this Agreement, or the consummation of the transactions
contemplated hereby, does or will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under or give to others any right of termination, acceleration, cancelation or
other right under (a) any agreement, document or instrument to which Ensign is a party or by which Ensign is bound or (b) any term or provision of any judgment, order, writ, injunction or decree binding on Ensign (or its assets or
properties), except any such breaches or defaults that would not have a Material Adverse Effect on Ensign. 

  
 3 

 Section 2.05 Non-Foreign Person. Ensign is a United States person (as defined in the Code)
and is, 
 therefore, not subject to the provisions of the Code relating to the withholding of sales or exchange proceeds to foreign persons, and is not
subject to any state withholding requirements. Ensign has delivered to CareTrust an affidavit stating under penalty of perjury Ensign’s United States Taxpayer Identification Number and that Ensign is not a foreign person pursuant to
Section 1445(b)(2) of the Code and a comparable affidavit satisfying any state withholding requirements. 
 Section 2.06
Solvency. Ensign has been and will be solvent at all times prior to and after giving effect to the contribution of the Interests to the Operating Partnership, and the other aspects of the Reorganization and the Distribution. 

Section 2.07 Litigation. There is no action, suit or proceeding pending or, to Ensign’s knowledge, threatened against Ensign
which, if adversely determined, would reasonably be expected to have a Material Adverse Effect on Ensign. 
 Section 2.08 Absence of
Registration. Ensign acknowledges that the shares of CareTrust Common Stock to be issued to it hereunder have not been registered under the Securities Act and, therefore, may not be sold unless registered under the Securities Act or an exemption
from registration is available. 
 Section 2.09 No Injunction. No Governmental Authority has enacted, issued, promulgated, enforced
or entered any statute, rule, regulation, executive order, decree, judgment, injunction or other order (whether temporary, preliminary or permanent), in any case, which is in effect and which prevents or prohibits consummation of any of the
transactions contemplated in this Agreement, and none of the same brought by a Governmental Authority of competent jurisdiction is pending that seeks the foregoing. 

Section 2.10 Consents, Etc. All necessary consents and approvals of Governmental Authorities or third parties (including lenders) for
Ensign to consummate the transactions contemplated hereby have been obtained, except for those the absence of which would not have a Material Adverse Effect on Ensign. 

Section 2.11 No Brokers. Neither Ensign nor any of Ensign’s officers, directors or employees has employed or made any agreement
with any broker, finder or similar agent or any person or firm which will result in the obligation of any CareTrust Entities or any Companies to pay any finder’s fee, brokerage fees or commissions or similar payment in connection with the
transactions contemplated by this Agreement. 
 Section 2.12 Ownership of Interests. Ensign is the owner of the Interests and has the
power and authority to transfer, sell, assign and convey to the Operating Partnership such Interests free and clear of any Liens, except for Permitted Liens, and, upon delivery of the consideration for such Interests as provided herein, the
Operating Partnership will acquire good and valid title thereto, free and clear of any Liens, except for Permitted Liens. Except as provided for or contemplated by this Agreement, there are no rights, subscriptions, warrants, options, conversion
rights, preemptive rights, agreements, instruments or understandings of any kind outstanding (a) relating to the Interests or (b) to purchase, transfer or to otherwise acquire, or to in any way encumber, any of the Interests or any
securities or obligations of any kind convertible into Interests or other equity interests or profit participation of any kind in the Companies. All of the issued and outstanding Interests have been duly authorized and are validly issued, fully paid
and non-assessable. 

  
 4 

 Section 2.13 Organization and Authority of the Companies. Each Company is a limited
liability company duly organized, validly existing and in good standing under the Laws of the State of Nevada. Each Company has all power and authority to own, lease or operate its property and to carry on its business as presently conducted and, to
the extent required under applicable Law, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary, except where the failure to be
so qualified would not have a Material Adverse Effect on Ensign or CareTrust. Ensign has provided to CareTrust correct and complete copies of the LLC Agreement and the articles of organization or equivalent organizational document of each Company,
in each case, with all amendments as in effect on the date hereof. None of the Companies has adopted a plan of liquidation, dissolution, merger, consolidation, restructuring, recapitalization or reorganization. 

Section 2.14 Taxes. To Ensign’s knowledge, and except as would not have a Material Adverse Effect on Ensign or CareTrust,
(a) each Company has filed all Tax Returns and reports required to be filed by it (after giving effect to any filing extension properly granted by a Governmental Authority having authority to do so) and all such returns and reports are accurate
and complete in all material respects, and has paid (or had paid on its behalf) all Taxes as required to be paid by it, (b) no deficiencies for any Taxes have been proposed, asserted or assessed against any Company, and no requests for waivers
of the time to assess any such Taxes are pending, (c) Ensign has filed all Tax Returns and reports required to be filed by it with respect to the Properties (after giving effect to any filing extension properly granted by a Governmental
Authority having authority to do so) and all such returns and reports are accurate and complete in all material respects, and has paid (or had paid on its behalf) all Taxes as required to be paid by it with respect to the Properties and (d) no
deficiencies for any Taxes have been proposed, asserted or assessed against Ensign with respect to the Properties, and no requests for waivers of the time to assess any such Taxes are pending. 

Section 2.15 Company Litigation. Except as may be described in the Information Statement, there is no material Action, litigation,
claim or other proceeding, either judicial or administrative (including, without limitation, any governmental action or proceeding), pending or, to Ensign’s knowledge, threatened in the last twelve months, against any Property, Ensign or the
Companies. Ensign is not bound by any outstanding order, writ, injunction or decree of any court, Governmental Entity or arbitration against or affecting all or any portion of the Interests, which in any such case would have a Material Adverse
Effect on Ensign or CareTrust. 
 Section 2.16 Compliance With Laws. In connection with the operation of the Properties and the
Facilities, except as may be described in the Information Statement, to Ensign’s knowledge, the Properties and the Facilities have been maintained and operated, and on the date hereof are, in compliance in all material respects with all
applicable Laws (including, without limitation, those currently relating to fire, life safety, health codes and sanitation, Americans with Disabilities Act, zoning and building laws) whether Federal, state or local, foreign, except for Environmental
Laws which are addressed solely by Section 2.20. 
 Section 2.17 Eminent Domain. There is no existing or, to
Ensign’s knowledge, proposed or threatened condemnation, eminent domain or similar proceeding, or private purchase in lieu of such a proceeding, in respect of all or any material portion of any of the Properties. 

Section 2.18 Licenses and Permits. To Ensign’s knowledge, all licenses, permits and certificates (including certificates of
occupancy), required in connection with the ownership, construction, use, occupancy, management, leasing and operation of the Properties and Facilities have been obtained, are in full force and effect, and are in good standing, except for those
licenses, permits and certificates, the failure of which to obtain or maintain in good standing, would not have a Material Adverse Effect on Ensign or CareTrust. 

  
 5 

 Section 2.19 Real Property. Each of the Property Companies owns each of the Properties set
forth 
 opposite its name on Exhibit A, and has good and marketable title in fee simple to such Properties free and clear of all Liens, other
than Permitted Liens. No party to any material agreement affecting the Properties or Facilities has given to Ensign any written notice of any uncured default with respect to any such material agreement affecting the Properties or Facilities which
would have a Material Adverse Effect on Ensign or CareTrust, and no event has occurred or, to Ensign’s knowledge, is threatened, which through the passage of time or the giving of notice, or both, would constitute a default thereunder which
would have a Material Adverse Effect on Ensign or CareTrust or would cause the acceleration of any material obligation of any party thereto or the creation of a Lien upon any Property, except for Permitted Liens. To Ensign’s knowledge, such
agreements are valid and binding and in full force and effect, and such agreements, including all amendments, modifications and supplements, have been delivered or made available to CareTrust. 

Section 2.20 Environmental Compliance. Except as may be described in the Information Statement or any environmental reports in
Ensign’s possession and made available to CareTrust (the “Environmental Reports”) (true and correct copies of which have been made available to CareTrust): (a) to Ensign’s knowledge, the Properties are currently being
operated in compliance in all material respects with all Environmental Laws and Environmental Permits; (b) neither Ensign nor any of the Companies have received any written notice from any Governmental Authority or any other Person claiming
that Ensign or any of the Companies is in material violation of, or has any material liability under, any Environmental Laws or Environmental Permits with respect to the Properties; (c) neither Ensign nor any of the Companies is currently
conducting any material remedial action pursuant to Environmental Laws at any Property; (d) except as may be may be described in the Information Statement or the Environmental Reports, to Ensign’s knowledge, there has been no spill or
release of Hazardous Materials at, on, under or upon any of the Properties that would reasonably be likely to result in any material claim under any Environmental Laws or Environmental Permit against Ensign, CareTrust or any of the Companies. 

Section 2.21 Trademarks and Tradenames; Proprietary Rights. There are no actions or other judicial or administrative proceedings
against Ensign, the Companies, the Properties or the Facilities pending or, to Ensign’s knowledge, threatened in the last twelve months, that concern any copyrights, copyright application, trademarks, trademark registrations, trade names,
service marks, service mark registrations, trade names and trade name registrations or any trade secrets being indirectly transferred to the Operating Partnership hereunder (the “Proprietary Rights”) and that, if adversely
determined, would have a Material Adverse Effect on Ensign or CareTrust. To Ensign’s knowledge, the current use of the Proprietary Rights does not conflict with, infringe upon or violate any copyright, trade secret, trademark or registration of
any other Person. 
 Section 2.22 Condition of Property. To Ensign’s knowledge, except as may be described in the Information
Statement, there is no material defect in the structural condition of any Property, the roof thereon, the improvements thereon, the structural elements thereof and the mechanical systems thereon (including, without limitation, all HVAC, plumbing,
electrical, elevator, security, utility, sprinkler and safety systems), nor any material damage from casualty or other cause, nor any soil condition of any Property that will not support all of the improvements thereon without the need for unusual
or new subsurface excavations, fill, footings, caissons or other installations, except for any such defect, damage or condition that has been corrected or will be corrected in the ordinary course of the business of the Property as disclosed as part
of its scheduled annual maintenance and improvement program. 

  
 6 

 Section 2.23 Leases. A true and complete copy of each lease or occupancy agreement for the
tenants at each Facility (collectively, the “Leases”) has been made available to CareTrust, and, to Ensign’s knowledge, such leases are in full force and effect, except as may be described in the Information Statement; the
Operating Company which is lessor under such Leases has not received any written notice that it is in default of any of its obligations under such Leases beyond any applicable grace period which has not been cured; to Ensign’s knowledge, except
as may be described in the Information Statement or the rent roll delivered to CareTrust, no tenant is in default under any Lease. To Ensign’s knowledge, all material obligations of the lessor under the Leases that have accrued prior to the
date hereof have been performed or satisfied. To Ensign’s knowledge, no tenant under any of the Leases is presently the subject of any voluntary or involuntary bankruptcy or insolvency proceedings. 

Section 2.24 Tangible Personal Property. The Operating Companies own or lease all of the tangible personal property constituting
“Fixtures and Personal Property” (as defined below) which is used in and necessary to the operation of each of the Facilities. “Fixtures and Personal Property” shall mean all fixtures, furniture, furnishings, apparatus and
fittings, equipment, machinery, appliances, building supplies, tools, and other items of personal property used in connection with the operation or maintenance of the Facilities; excluding, however, all fixtures, furniture, furnishings, apparatus
and fittings, equipment, machinery, appliances, building supplies, tools, and other items of personal property owned by tenants, subtenants, guests, invitees, employees, easement holders, service contractors and other Persons who own any such
property located at the Facilities. To Ensign’s knowledge, such Fixtures and Personal Property are free and clear of all Liens, other than Liens pursuant to the agreements pursuant to which such Fixtures and Personal Property are leased,
Permitted Liens and Liens that would not have a Material Adverse Effect on CareTrust. 
 Section 2.25 Service Contracts. There are no
service or maintenance contracts affecting any Property or Facility which are not cancelable upon thirty (30) days’ notice or less or which are for a contract amount greater than $100,000 per annum; true and correct copies of the service,
equipment, franchise, operating, management, parking, supply, utility and maintenance agreements relating to any Property or Facility (the “Service Contracts”) have been made available to CareTrust and the same are in full force and
effect and have not been modified or amended except in the ordinary course of business. To Ensign’s knowledge, no material event of default exists (which remains uncured) under any of the Service Contracts. 

Section 2.26 Existing Loans. The secured loans presently encumbering the Properties or Facilities or any direct or indirect interest in
any Company and any unsecured loans with respect to which any of the Companies are obligated, after giving effect to the financing transactions contemplated to occur on or about May 30, 2014, as described in the Information Statement (the
“Existing Loans”), and the documents entered into in connection therewith (collectively, the “Loan Documents”) are, to Ensign’s knowledge, in full force and effect as of the date hereof. To Ensign’s
knowledge, no event of default or event that with the passage of time or giving of notice or both would constitute a material event of default has occurred as of the date hereof under any of the Loan Documents. True and correct copies of the
existing Loan Documents have been made available to CareTrust. Except as set forth on Schedule 2.26, none of the Companies is the holder of any promissory note or similar debt instrument whether issued by an affiliated entity or third
party. 
 Section 2.27 Real Property Taxes. Neither Ensign nor any of the Companies has received any written notification of any
material new or increased general or special Tax assessments for any of the Properties or Facilities except as may be disclosed in the Title Policies. Each of the Properties is assessed for real property Tax through one Tax bill and each Property is
comprised of one or more independent Tax lots. 

  
 7 

 Section 2.28 Insurance. Each of the Operating Companies currently has in place public
liability, casualty and other insurance coverage with reputable insurance companies with respect to its Facilities in customary amounts for projects similar to the Facilities in the markets in which such Facilities are located, and in all cases
substantially in compliance with the existing financing arrangements. To Ensign’s knowledge, each of such policies is in full force and effect, and all premiums due and payable thereunder have been fully paid when due. No written notice of
cancellation, default or non-renewal has been received or to Ensign’s knowledge threatened with respect thereto. 
 Section 2.29
Exclusive Representations. Except as set forth in this Article II, Ensign makes no representation or warranty of any kind, express or implied, in connection with any of the Interests, the Companies, the Properties or the
Facilities, and the CareTrust Entities acknowledge that they have not relied upon any other such representation or warranty. Except as set forth in Article III, Ensign acknowledges that no representation or warranty has been made by the
CareTrust Entities with respect to the legal and Tax consequences of the transfer of the Interests to the Operating Partnership and the receipt of the consideration therefor. Ensign acknowledges that it has not relied upon any other such
representation or warranty. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE CARETRUST ENTITIES 

The CareTrust Entities hereby represent and warrant to Ensign as follows: 

Section 3.01 Organization and Authority. Each CareTrust Entity is duly organized, validly existing and in good standing under the Laws
of its state of organization. Each CareTrust Entity has all requisite power and authority to enter into this Agreement and to carry out the transactions contemplated hereby, and to own, lease or operate its property and to carry on its business as
presently conducted and, to the extent required under applicable Law, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary,
other than in such jurisdictions where the failure to be so qualified would not have a Material Adverse Effect on CareTrust. 
 Section 3.02
Due Authorization. The execution, delivery and performance of this Agreement by the CareTrust Entities has been duly and validly authorized by all necessary action of the CareTrust Entities. This Agreement constitutes the legal, valid and
binding obligation of the applicable CareTrust Entities, enforceable against the CareTrust Entities in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Law relating to creditors’ rights and
general principles of equity. 
 Section 3.03 Consents and Approvals. Except as shall have been satisfied on or prior to the date
hereof, no material consent, waiver, approval or authorization of, or filing with, any Person or Governmental Authority or under any applicable Law is required to be obtained by the CareTrust Entities in connection with the execution, delivery and
performance of this Agreement or the transactions contemplated hereby. 
 Section 3.04 No Violation. None of the execution, delivery
or performance of this Agreement, or the consummation of the transactions contemplated hereby, does or will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under
or give to others any right of termination, acceleration, cancelation or other right under (a) the organizational documents of the CareTrust Entities, (b) any term or provision of any judgment, order, writ, injunction, or decree binding on
the CareTrust Entities or (c) any other agreement to which any CareTrust Entity is a party. 

  
 8 

 Section 3.05 Validity of CareTrust Common Stock. The shares of CareTrust Common Stock to
be issued to Ensign pursuant to this Agreement have been duly authorized by CareTrust and, when issued against the consideration therefor, will be validly issued by CareTrust, free and clear of all Liens created by CareTrust (other than Liens
created by the organizational documents of CareTrust). 
 Section 3.06 Litigation. There is no action, suit or proceeding pending or,
to the CareTrust Entities’ knowledge, threatened against the CareTrust Entities which, if adversely determined, would reasonably be expected to have a Material Adverse Effect on CareTrust. 

Section 3.07 Limited Activities. Except as described in the Information Statement, the CareTrust Entities and their Subsidiaries have
not engaged in any material business or incurred any material obligations. 
 Section 3.08 No Other Representations or Warranties.
Except as set forth above in this Article III, the CareTrust Entities make no representation or warranty of any kind, express or implied, in connection with the legal and Tax consequences of the transfer of the Interests to the Operating
Partnership and the receipt of the consideration therefor, and Ensign acknowledges that it has not relied upon any other such representation or warranty. Except as set forth in Article II, the CareTrust Entities acknowledge that no
representation or warranty has been made by Ensign with respect to any of the Interests, the Companies, the Properties or the Facilities. The CareTrust Entities acknowledge that they have not relied upon any other such representation or warranty.

 ARTICLE IV 

INDEMNIFICATION; DISPUTE RESOLUTION 

Section 4.01 Indemnification. In the event of any breach of a representation, warranty or covenant of any Party contained in this
Agreement, the other Parties may be entitled to indemnification as and to the extent provided in Article IX of the Separation Agreement. For all Tax purposes other than for purposes of Section 355(g) of the Code, Ensign and CareTrust agree
to treat (i) any payment required by this Agreement (other than payments with respect to interest accruing after the effective time of the Distribution) as either a contribution by Ensign to CareTrust or a distribution by CareTrust to Ensign,
as the case may be, occurring immediately prior to the effective time of the Distribution or as a payment of an assumed or retained liability, and (ii) any payment of interest as taxable or deductible, as the case may be, to the party entitled
under this Agreement to retain such payment or required under this Agreement to make such payment, in either case, except as otherwise required by applicable Law. 

Section 4.02 Dispute Resolution. Any disputes under this Agreement shall be governed by Article X of the Separation Agreement.

 ARTICLE V 

DEFINITIONS 

Section 5.01 Definitions. For purposes of this Agreement, the following terms shall have the following meanings. 

  
 9 

 (a) “Affiliate” means, with respect to any specified Person, any other Person
that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person. For this purpose “control” of a Person means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, by contract or otherwise. 

(b) “Business Day” means a day other than a Saturday, a Sunday or a day on which banking institutions located in the State
of California are authorized or obligated by applicable Law or executive order to close. 
 (c) “Code” means the Internal
Revenue Code of 1986, as amended. 
 (d) “Company” means a Property Company or an Operating Company. 

(e) “Disclosure Schedule” means that disclosure schedule attached as Appendix A to this Agreement. 

(f) “Environmental Laws” means all applicable statutes, regulations, rules, ordinances, codes, licenses, permits, orders,
demands, approvals, authorizations and other binding requirements of any Governmental Entity and all applicable judicial, administrative and regulatory decrees, judgments and orders relating to the protection of the environment as in effect on the
Closing Date, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), the Clean
Air Act (42 U.S.C. Section 7401 et seq.), the Federal Water Pollution Control Act (33 U.S.C. Section 1251), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the Toxic Substances Control Act (15 U.S.C. 2601 et seq.), the Endangered
Species Act (16 U.S.C. 1531 et seq.) and the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. 11001 et seq.), and similar state and local requirements. 

(g) “Environmental Permits” means any and all licenses, certificates, permits, registrations, approvals, authorizations, and
consents that are required pursuant to any Environmental Laws. 
 (h) “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
 (i) “Governmental Authority” means any U.S. federal, state, local or non-U.S. court, government,
department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority. 
 (j)
“Hazardous Materials” means any petroleum or petroleum products, radioactive materials or wastes, friable asbestos, polychlorinated biphenyls and any other hazardous or toxic substance, material or waste that is prohibited or
regulated, or as to which liability may be imposed, under any Environmental Law. 
 (k) “Information Statement” means the
information statement, attached as an exhibit to the Registration Statement, and any related documentation to be provided to holders of common stock of Ensign in connection with the Distribution, including any amendments or supplements thereto. 

(l) “Law” means any law, statute, ordinance, code, rule, regulation, order, writ, proclamation, judgment, injunction or
decree of any Governmental Authority. 

  
 10 

 (m) “Liens” means all pledges, claims, liens, mortgages, deeds of trust,
charges, restrictions, controls, easements, rights of way, exceptions, reservations, leases, licenses, grants, covenants and conditions, encumbrances and security interests of any kind or nature whatsoever. 

(n) “Material Adverse Effect” with respect to a Person means any material adverse effect on the business, assets, financial
condition, properties or results of operations of such Person or on such Person’s ability to consummate the transactions contemplated by this Agreement. 

(o) “Operating Partnership Agreement” means the agreement of limited partnership of the Operating Partnership, as in effect
from time to time. 
 (p) “Party” or “Parties” has the meaning set forth in the preamble to this
Agreement. 
 (q) “Permitted Lien” means: (i) Liens securing Taxes, the payment of which is not delinquent or may be
paid without interest or penalties or the validity or amount of which is actively being contested in good faith by appropriate proceedings diligently pursued; (ii) zoning laws, building codes, rights-of ways and other land use laws and
ordinances applicable to the Properties that are not violated by the existing structures or present uses thereof or the transfer of the Properties; (iii) carriers’, warehousemen’s, materialmen’s, workmen’s, repairmen’s
and mechanics’ liens, and other similar liens arising or incurred in the ordinary course of business that secure payment of obligations arising in the ordinary course of business not more than 60 days past due or which are being contested in
good faith by appropriate proceedings diligently pursued; (iv) non-exclusive easements for public utilities and other operational purposes and rights-of-ways that do not materially interfere with the current use or value of the Properties; and
(v) all Liens listed on Exhibit C hereto. 
 (r) “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

(s) “Registration Statement” means CareTrust’s registration statement on Form 10 (File No. 001-36181) with respect
to the registration under the Exchange Act of the CareTrust Common Stock to be distributed in the Distribution, including any amendments or supplements thereto. 

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

 (u) “Subsidiary” means, with respect to any specified Person, any corporation, partnership, limited liability company,
joint venture or other organization, whether incorporated or unincorporated, of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or
others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such specified Person or by any one or more of its subsidiaries, or by such specified Person and one or more
of its Subsidiaries. 
 (v) “Tax” or “Taxes” means any and all taxes, charges, fees, duties, levies,
imposts or other assessments imposed by any federal, state, local or foreign Taxing Authority, including, but not limited to, income, gross receipts, excise, property, sales, use, license, capital stock, transfer, franchise, payroll, withholding,
social security, value added and other taxes, and any interest, penalties or additions attributable thereto. 

  
 11 

 (w) “Tax Return” means any return, declaration, report, claim for refund, or
information return or statement related to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
 (x)
“Taxing Authority” means any Governmental Authority or any subdivision, agency, commission or authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or
imposition of any Tax (including the United States Internal Revenue Service). 
 (y) “Title Policies” means those certain
policies of title insurance insuring the Property Companies’ interests in the Properties. 
 ARTICLE VI 

GENERAL PROVISIONS 

Section 6.01 Amendments and Waivers. 

(a) Subject to Section 11.1 of the Separation Agreement, this Agreement may not be amended except by an agreement in writing signed by
the Parties. 
 (b) Except as otherwise expressly provided by this Agreement, any term or provision of this Agreement may be waived, or the
time for its performance may be extended, by the Party entitled to the benefit thereof and any such waiver shall be validly and sufficiently given for the purposes of this Agreement if it is in writing signed by an authorized representative of such
Party. No delay or failure in exercising any right, power or remedy hereunder shall affect or operate as a waiver thereof; nor shall any single or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power
or remedy preclude any further exercise thereof or of any other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive of any rights or remedies that any Party would otherwise have. 

Section 6.02 Entire Agreement. This Agreement, the Separation Agreement and the exhibits and schedules referenced herein and therein
and attached hereto or thereto, constitute the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersede all prior negotiations, agreements, commitments, writings, courses of dealing and
understandings with respect to the subject matter hereof. 
 Section 6.03 Survival of Agreements. All representations, warranties,
covenants and agreements of the Parties contained in this Agreement shall survive and remain in full force and effect after the consummation of the transactions contemplated herein. 

Section 6.04 Third-Party Beneficiaries. Except as otherwise expressly contemplated by this Agreement, this Agreement is solely for the
benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. 

Section 6.05 Notices. All notices, requests, permissions, waivers and other communications hereunder shall be in writing and shall be
deemed to have been duly given (a) five (5) Business Days following sending by registered or certified mail, postage prepaid, (b) when sent, if sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient, 

  
 12 

 
(c) when delivered, if delivered personally to the intended recipient, and (d) one (1) Business Day following sending by overnight delivery via a national courier service and, in
each case, addressed to a Party at the following address for such Party (as updated from time to time by notice in writing to the other Party): 

if to any of the CareTrust Entities, to: 

CareTrust REIT, Inc. 
 27101
Puerta Real, Suite 400 
 Mission Viejo, CA 92691 

Attention: William M. Wagner 

Email: wwagner@caretrustreit.com 

Facsimile: (949) 540-3002 

if to Ensign, to: 
 The Ensign
Group, Inc. 
 27101 Puerta Real, Suite 450 

Mission Viejo, CA 92691 

Attention: Chad Keetch 
 Email:
ckeetch@Ensigngroup.net 
 Facsimile: (949) 540-1968 

Section 6.06 Counterparts; Electronic Delivery. This Agreement may be executed in multiple counterparts, each of which when executed
shall be deemed to be an original, but all of which together shall constitute one and the same agreement. Execution and delivery of this Agreement or any other documents pursuant to this Agreement by facsimile or other electronic means shall be
deemed to be, and shall have the same legal effect as, execution by an original signature and delivery in person. 
 Section 6.07
Severability. If any term or other provision of this Agreement or the exhibits attached hereto or thereto is determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being
enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is
not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so
as to affect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the fullest extent possible. If any sentence in this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable. 
 Section 6.08 Assignability;
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns; provided that the rights and obligations of each Party under this Agreement shall not be assignable,
in whole or in part, directly or indirectly, whether by operation of law or otherwise, by such Party without the prior written consent of the other Parties (such consent not to be unreasonably withheld, conditioned or delayed) and any attempt to
assign any rights or obligations under this Agreement without such consent shall be null and void. Notwithstanding the foregoing, any Party may assign its rights and obligations under this Agreement to any of their respective Affiliates provided
that no such assignment shall release such assigning Party from any liability or obligation under this Agreement. 

  
 13 

 Section 6.09 Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the substantive Laws of the State of Delaware, without regard to any conflicts of law provisions thereof that would result in the application of the Laws of any other jurisdiction. 

Section 6.10 Construction. This Agreement shall be construed as if jointly drafted by the Parties and no rule of construction or strict
interpretation shall be applied against any Party. The Parties represent that this Agreement is entered into with full consideration of any and all rights which the Parties may have. The Parties have relied upon their own knowledge and judgment. The
Parties have had access to independent legal advice, have conducted such investigations they thought appropriate, and have consulted with such other independent advisors as they deemed appropriate regarding this Agreement and their rights and
asserted rights in connection therewith. The Parties are not relying upon any representations or statements made by the other Parties, or such other Party’s employees, agents, representatives or attorneys, regarding this Agreement, except to
the extent such representations are expressly set forth or incorporated in this Agreement. The Parties are not relying upon a legal duty, if one exists, on the part of the other Parties (or any such other Party’s employees, agents,
representatives or attorneys) to disclose any information in connection with the execution of this Agreement or their preparation, it being expressly understood that no Party shall ever assert any failure to disclose information on the part of the
other Parties as a ground for challenging this Agreement. 
 Section 6.11 Performance. Each Party shall cause to be performed, and
hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary or Affiliate of such Party. 

Section 6.12 Titles and Headings. Titles and headings to Sections and Articles are inserted for the convenience of reference only and
are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 6.13 Exhibits and
Schedules. The Exhibits and Schedules attached hereto are incorporated herein by reference and shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. 

Section 6.14 Effective Time. This Agreement shall be effective as of 3:00 a.m. (Pacific time) on May 30, 2014. 

[Signature Page Follows] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their
respective duly authorized officers or representatives, all as of the date first written above. 
  

			
	THE ENSIGN GROUP, INC.
		
	By:	 	/s/ Christopher R. Christensen
		 	 Name: Christopher R. Christensen
 Title:
  President and Chief Executive Officer

  

			
	CARETRUST REIT, INC.
		
	By:	 	/s/ Gregory K. Stapley
		 	 Name: Gregory K. Stapley
 Title:
  President and Chief Executive Officer

  

			
	CARETRUST GP, LLC
		
	By:	 	CareTrust REIT, Inc., its sole member
		
	By:	 	/s/ Gregory K. Stapley
		 	 Name: Gregory K. Stapley
 Title:
  President and Chief Executive Officer

  

			
	CTR PARTNERSHIP, L.P.
		
	By:	 	CareTrust GP, LLC, its general partner
		
	By:	 	CareTrust REIT, Inc., its sole member
		
	By:	 	/s/ Gregory K. Stapley
		 	 Name: Gregory K. Stapley
 Title:
  President and Chief Executive Officer

 Exhibit A 

Property Companies and Properties 
  

					
	 	  	 Property Company
	  	 Property

	1.	  	Paredes Health Holdings LLC	  	 1.      Alta Vista Rehabilitation and Healthcare

	2.	  	Arrow Tree Health Holdings LLC	  	 2.      Arbor Glen Care Center

	3.	  	Tenth East Holdings LLC	  	 3.      City Creek Post-Acute (fka Arlington Hills Healthcare Center)

	4.	  	Mesquite Health Holdings LLC	  	 4.      Willowbend Nursing & Rehabilitation Center

	5.	  	Jefferson Ralston Holdings LLC	  	 5.      Arvada Care and Rehabilitation Center

	6.	  	Queensway Health Holdings LLC	  	 6.      Atlantic Memorial Healthcare Center

	7.	  	Irving Health Holdings LLC	  	 7.      Beatrice Health & Rehabilitation

	8.	  	Sky Holdings AZ LLC	  	 8.      Bella Vita Health and Rehabilitation Center & Desert Sky Assisted Living

	9.	  	Trousdale Health Holdings LLC	  	 9.      Brookfield Healthcare Center

	10.	  	Granada Investments LLC	  	 10.    Camarillo Healthcare Center

	11.	  	Golfview Holdings LLC	  	 11.    Cambridge Health & Rehabilitation Center

	12.	  	Avenue N Holdings LLC	  	 12.    Cambridge Square Retirement Center

	13.	  	Expo Park Health Holdings LLC	  	 13.    Canterbury Gardens Independent & Assisted Living Community

	14.	  	Falls City Health Holdings LLC	  	 14.    Falls City Nursing & Rehabilitation (fka Careage Estates of Falls City)

	15.	  	Gillette Park Health Holdings LLC	  	 15.    Careage Hills Rehabilitation & Healthcare

	16.	  	Wayne Health Holdings LLC	  	 16.    Careage Campus of Care & County View Assisted Living (fka Careage of Wayne)

	17.	  	CM Health Holdings LLC	  	 17.    Carmel Mountain Rehab & Healthcare Center

	18.	  	Trinity Mill Holdings LLC	  	 18.    Carrollton Health & Rehabilitation Center

	19.	  	Rillito Holdings LLC	  	 19.    Catalina Post-Acute & Rehabilitation

	20.	  	Lafayette Health Holdings LLC	  	 20.    Chateau Des Mons Care and Assisted Living

21.    Julia Temple Healthcare Center

	21.	  	Gazebo Park Health Holdings LLC	  	 22.    Clarion Wellness & Rehabilitation Center (fka Careage of Clarion)

	22.	  	Prairie Health Holdings LLC	  	 23.    Colonial Manor of Randolph

	23.	  	Jordan Health Properties LLC	  	 24.    Copper Ridge Health Care

	24.	  	Flamingo Health Holdings LLC	  	 25.    Desert Springs Senior Living

	25.	  	Terrace Holdings AZ LLC	  	 26.    Desert Terrace Healthcare Center

	26.	  	Salmon River Health Holdings LLC	  	 27.    Discovery Care Center

	27.	  	Fort Street Health Holdings LLC	  	 28.    Draper Rehabilitation and Care Center

	28.	  	Snohomish Health Holdings LLC	  	 29.    Emerald Hills Rehabilitation and Skilled Nursing

	29.	  	Oleson Park Health Holdings LLC	  	 30.    Fort Dodge Health & Rehabilitation (fka Careage of Fort Dodge)

	30.	  	Hillendahl Health Holdings LLC	  	 31.    Golden Acres Living and Rehabilitation Center

	31.	  	Moenium Holdings LLC	  	 32.    Grand Court of Mesa

	32.	  	Rio Grande Health Holdings LLC	  	 33.    Grand Terrace Rehabilitation and Healthcare

	33.	  	Josey Ranch Healthcare Holdings LLC	  	 34.    Heritage Gardens Rehabilitation & Healthcare

	34.	  	Ensign Highland LLC	  	 35.    Camelback Post-Acute Care & Rehabilitation (fka Highland Manor Health & Rehabilitation
Center)

	35.	  	Big Sioux River Health Holdings LLC	  	 36.    Hillcrest Healthcare Center & Mica Hill Estates Assisted Living

	36.	  	Cottonwood Health Holdings LLC	  	 37.    Holladay Healthcare Center

	37.	  	Dixie Health Holdings LLC	  	 38.    Hurricane Health and Rehabilitation

	38.	  	Queen City Health Holdings LLC	  	 39.    La Villa Rehabilitation and Healthcare Center

	39.	  	Saratoga Health Holdings LLC	  	 40.    Lake Ridge Senior Living

	40.	  	Verde Villa Holdings LLC	  	 41.    Lake Village Nursing & Rehabilitation Center

	41.	  	Hillview Health Holdings LLC	  	 42.    Lakeland Hills Assisted Living

					
	 	  	 Property Company
	  	 Property

	42.	  	51st Avenue Health Holdings LLC	  	 43.    Legacy Rehabilitation and Living

	43.	  	Wisteria Health Holdings LLC	  	 44.    Wisteria Place

	44.	  	Lowell Health Holdings LLC	  	 45.    Littleton Care and Rehabilitation Center

	45.	  	Renee Avenue Health Holdings LLC	  	 46.    Monte Vista Hills Healthcare Center

	46.	  	Northshore Healthcare Holdings LLC	  	 47.    Montebello Wellness Center

	47.	  	Valley Health Holdings LLC	  	 48.    North Mountain Medical & Rehabilitation Center

	48.	  	Willits Health Holdings LLC	  	 49.    Northbrook Healthcare Center

	49.	  	Anson Health Holdings LLC	  	 50.    Northern Oaks Living & Rehabilitation Center

	50.	  	Arapahoe Health Holdings LLC	  	 51.    Oceanview Healthcare and Rehabilitation

	51.	  	49th Street Health Holdings LLC	  	 52.    Omaha Nursing and Rehabilitation Center

	52.	  	Orem Health Holdings LLC	  	 53.    Orem Rehabilitation and Nursing Center

	53.	  	RB Heights Health Holdings LLC	  	 54.    Osborn Health & Rehabilitation

	54.	  	Lowell Lake Health Holdings LLC	  	 55.    Owyhee Health and Rehabilitation Center

	55.	  	Cherry Health Holdings LLC (formerly Cherry Health Holdings, Inc.)	  	 56.    Pacific Care & Rehabilitation

	56.	  	Fig Street Health Holdings LLC	  	 57.    Palomar Vista Healthcare Center

	57.	  	Fifth East Holdings LLC	  	 58.    Paramount Health and Rehabilitation

	58.	  	Plaza Health Holdings LLC	  	 59.    Park Manor Rehabilitation Center

	59.	  	Boardwalk Health Holdings LLC	  	 60.    Park Place Assisted Living

	60.	  	Mountainview Communitycare LLC	  	 61.    Park View Post-Acute (fka Park View Gardens at Montgomery)

	61.	  	Burley Healthcare Holdings LLC	  	 62.    Parke View Rehabilitation and Care Center

	62.	  	Price Health Holdings LLC	  	 63.    Pinnacle Nursing and Rehabilitation Center

	63.	  	Lemon River Holdings LLC	  	 64.    The Grove Care & Wellness (fka Plymouth Tower Care and Living Center)

	64.	  	Memorial Health Holdings LLC	  	 65.    Gateway Transitional Care Center (fka Pocatello Care and Rehabilitation Center)

	65.	  	Silver Lake Health Holdings LLC	  	 66.    Provo Rehabilitation and Nursing

	66.	  	Willows Health Holdings LLC	  	 67.    Redmond Care and Rehabilitation Center

68.    Redmond Heights Senior Living

	67.	  	Kings Court Health Holdings LLC	  	 69.    Richland Hills Rehabilitation and Healthcare Center

	68.	  	Emmett Healthcare Holdings LLC	  	 70.    River’s Edge Rehabilitation and Living Center

	69.	  	18th Place Health Holdings LLC	  	 71.    Rose Court Senior Living

	70.	  	Ensign Bellflower LLC	  	 72.    Rose Villa Healthcare Center

	71.	  	Silverada Health Holdings LLC	  	 73.    Rosewood Rehabilitation Center

	72.	  	Meadowbrook Health Associates LLC	  	 74.    Sabino Canyon Rehabilitation and Care Center

	73.	  	San Corrine Health Holdings LLC	  	 75.    Northeast Rehabilitation & Healthcare Center (fka Salado Creek Living & Rehabilitation
Center)

	74.	  	Ives Health Holdings LLC	  	 76.    San Marcos Rehabilitation and Healthcare Center

	75.	  	Lockwood Health Holdings LLC	  	 77.    Santa Maria Terrace

	76.	  	Long Beach Health Associates LLC	  	 78.    Shoreline Healthcare Center

	77.	  	Ensign Southland LLC	  	 79.    Southland Care Center & Southland Living

	78.	  	Lufkin Health Holdings LLC	  	 80.    Southland Rehabilitation and Healthcare Center

	79.	  	Mission CCRC LLC	  	 81.    St. Joseph Villa, St. Joseph Villa Assisted Living & The Marian Center

	80.	  	Stillhouse Health Holdings LLC	  	 82.    Stillhouse Rehabilitation and Healthcare Center

	81.	  	Regal Road Health Holdings LLC	  	 83.    Sunview Health and Rehabilitation Center

	82.	  	Guadalupe Health Holdings LLC	  	 84.    The Courtyard Rehab and Healthcare Center

	83.	  	Polk Health Holdings LLC	  	 85.    Timberwood Nursing & Rehabilitation Center

	84.	  	South Dora Health Holdings LLC	  	 86.    Ukiah Post-Acute (fka Ukiah Healthcare Center)

					
	 	  	 Property Company
	  	 Property

	85.	  	Cedar Avenue Holdings LLC	  	 87.    Upland Rehabilitation and Care Center

	86.	  	Expressway Health Holdings LLC	  	 88.    Veranda Rehabilitation and Healthcare

	87.	  	Everglades Health Holdings LLC	  	 89.    Victoria Care Center

90.    Lexington Assisted Living

	88.	  	Temple Health Holdings LLC	  	 91.    Wellington Place Rehabilitation & Healthcare Center

	89.	  	4th Street Holdings LLC	  	 92.    West Bend Care Center & Prairie Creek Assisted Living

	90.	  	Bogardus Health Holdings LLC	  	 93.    Whittier Hills Health Care Center

	91.	  	Tulalip Bay Health Holdings LLC	  	 94.    Mountain View Rehabilitation and Care Center

 Exhibit B 

Operating Companies and Facilities 
  

					
	 	  	 Operating Company
	  	 Facility

	 1.
	  	Casa Linda Retirement LLC	  	Lakeland Hills Independent Living
	 2.
	  	Salt Lake Independence LLC	  	The Apartments at St. Joseph Villa
	 3.
	  	Dallas Independence LLC	  	The Cottages at Golden Acres

 Exhibit C 

Permitted Liens 
  

	1.	Liens arising under or imposed by (i) the Fourth Amended and Restated Loan Agreement dated as of November 10, 2009 with General Electric Capital Corporation, as agent and lender, or (ii) the Fifth Amended
and Restated Loan Agreement dated as of May 30, 2014 with General Electric Capital Corporation, as agent and lender. 

  

	2.	Liens that secure indebtedness that will be repaid on or about May 30, 2014. 

  

	3.	Liens that secure indebtedness that will be incurred on or about May 30, 2014, as described in the Information Statement. 

  

	4.	Liens that secure indebtedness under that certain Promissory Note, dated as of October 1, 2009, by and between Tenth East Holdings LLC and Johnson Land Enterprises, L.L.C.

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