Document:

Joint Stipulation of Settlement and Release

 EXHIBIT 10.65 
 STATE COURT OF FULTON COUNTY 
 STATE OF GEORGIA 
  

					
	 HAL UNSCHULD, on behalf of himself
 and all others similarly situated,
	  	:
 :
	  	
		  	:	  	
	 Plaintiff,
	  	:	  	
		  	:	  	 CIVIL ACTION FILE

	 v.
	  	:	  	 NO. 2006-EV-001333f

		  	:	  	
	 TRI-S SECURITY CORPORATION,
	  	:	  	
	 f/k/a DIVERSIFIED SECURITY
	  	:	  	
	 CORPORATION, et al.
	  	:	  	
	 Defendants.
	  	:	  	

 JOINT STIPULATION OF SETTLEMENT AND RELEASE 
 This Joint Stipulation of Settlement and Release is made and entered into on the undersigned date, by and between the following parties: Plaintiff Hal
Unschuld, individually and on behalf of the class he seeks to represent (“Plaintiff” or “Class Representative”), and Defendants Tri-S Security Corporation f/k/a Diversified Security Corporation (“Tri-S”), Ronald Farrell
(“Farrell”), E. Wayne Stallings (“Stallings”), Capital Growth Financial, LLC (“Capital Growth”), and Bathgate Capital Partners, LLC (“Bathgate”) (each a “Defendant” and collectively,
“Defendants”). Plaintiff and each of the Defendants are collectively referred to as the “Parties,” or individually, a “Party.” All capitalized terms not immediately defined herein are defined in Section I.C. below.

 RECITALS 
 WHEREAS this action was brought against Defendants for violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 in connection with Tri-S’s initial public offering (the “IPO”);

 WHEREAS Plaintiff alleges that the registration statement filed with the Securities and Exchange Commission on February 4, 2005 (the
“Registration Statement”) and the prospectus filed with the Securities and Exchange Commission on February 9, 2005 (the “Prospectus”) pursuant to which Tri-S conducted its IPO were materially false and misleading;

 WHEREAS Plaintiff believes the Action is meritorious based on alleged violations of the Securities Act of 1933, 15 U.S.C.
§§ 77a et seq., and that the Action is appropriate for class action treatment; 
 WHEREAS Defendants deny each and
every charge of wrongdoing and disclaim any and all wrongdoing or liability whatsoever, and have asserted a number of defenses to Plaintiff’s claims; 
 WHEREAS arm’s-length settlement negotiations have taken place between Plaintiff’s Counsel and Defendants’ Counsel on behalf of and for the Parties, and this Settlement Agreement has been reached,
subject to the final approval of the Court; 
  

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 WHEREAS, after investigation of the facts and after carefully considering applicable law,
Plaintiff’s Counsel has concluded that: (a) it is in the best interests of the Settlement Class to enter into the Settlement Agreement in order to avoid the uncertainties of litigation, particularly complex litigation such as this, and to
assure benefits to the Class Members and (b) the terms and conditions of this Settlement Agreement are fair, reasonable, and adequate, and in the best interests of all Class Members; 
 WHEREAS Defendants have conducted an investigation into the allegations raised by Plaintiff and evaluated the information elicited through that
investigation and concluded that, despite their good faith belief that they are not liable for any of the claims asserted in the Action and that they have good defenses to those claims, they will enter into this Settlement Agreement to obtain the
conclusive and complete dismissal of the Action, and to avoid: (a) the further expense, inconvenience, and burden of this litigation; (b) the distraction and diversion to them and their personnel and resources; and (c) the risk and
uncertainty of the outcome inherent in any litigation; and 
 WHEREAS it is the intention of the Parties that this Settlement Agreement shall
constitute a full and complete settlement and release of all claims arising from or related to the Action; 
  

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 THE PARTIES STIPULATE AND AGREE by and through their undersigned counsel that: 
  

	I.	INTRODUCTION AND DEFINITIONS 

 A. Procedural
History 
 1. On November 1, 2006, Plaintiff filed this action against Tri-S and certain of its current and former officers and
directors as well as certain underwriters for the IPO, alleging violations of the Securities Act. Plaintiff filed the case in the State Court of Fulton County, State of Georgia. 
 2. The Complaint asserts claims against all Defendants based on Sections 11 and 12(a)(2) of the Securities Act and claims against the Individual
Defendants based on Section 15 of the Securities Act on behalf of a proposed class of all public investors who purchased the publicly-traded common stock of Tri-S traceable to the IPO and issued pursuant to the Registration Statement and
Prospectus filed in connection with the IPO. 
 3. On December 1, 2006, Defendants removed the action to the United States District
Court for the Northern District of Georgia. 
 4. Plaintiff subsequently moved to remand the case to the Court and, on September 14,
2007, the federal court granted the remand motion. 
 5. On August 13, 2008, Defendants answered the Complaint and generally denied
Plaintiff’s allegations. Defendants also asserted numerous 

  

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affirmative defenses to Plaintiff’s claims. Defendants also moved on August 13, 2008 to dismiss all of Plaintiff’s claims or, alternatively,
for judgment on the pleadings pursuant to O.C.G.A. § 9-11-12. 
 6. Prior to Defendants answering and filing their potentially
dispositive motion, the Parties through counsel explored at length settlement possibilities, evaluated the respective merits of the opposing sides through face-to-face discussions, and generally made substantial efforts to ascertain whether the
Action might be resolved without trial. The first of these discussions occurred shortly after the case was removed to the federal court. Defendants made an offer of class settlement to Plaintiff, which was rejected. 
 7. Plaintiff opposed Defendants’ motion to dismiss or for judgment on the pleadings, and while that motion was pending, Plaintiff’s Counsel
conducted further lengthy negotiations with Defendants’ Counsel about attempting to resolve the claims. Plaintiff, through his counsel, rejected Defendants’ offers to settle the Action on a class basis. 
 8. In the course of those and subsequent discussions, Plaintiff’s Counsel discussed in detail with Defendants’ Counsel the strengths and
weaknesses of each side’s positions, as well as the risks to each party of proceeding to trial. During those discussions, Plaintiff made a settlement demand as a basis to resolve the Action. 
  

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 9. Following this demand from Plaintiff, the Parties conducted further settlement discussions. While
Plaintiff’s demand was not accepted by Defendants, it provided the basis for what became the instant Settlement Agreement. 
 10.
Throughout this period, Plaintiff and Defendants were informed and guided by financial analyses that indicated the range of potential damages in cases such as this, specifically in light of the claims and defenses that could be available to
Defendants. 
 11. In December 2008, counsel for the Parties finally reached an agreement in principle to settle the Action, and this
Settlement Agreement sets forth the terms to carry out that settlement. 
 B. Settlement Considerations 
 1. Based upon the proceedings described above in Section I.A. and Plaintiff’s Counsel’s investigation and evaluation of the facts and law
relating to the claims alleged in the Action, Plaintiff agreed to settle the Action pursuant to the terms of this Settlement Agreement after considering, among other things: (a) the uncertainty of being able to certify a class in this matter or
prove the allegations in the Complaint; (b) the risks to Plaintiff and the proposed Class that Defendants would succeed in defeating Plaintiff’s claims either through motion, at trial, or on appeal; (c) the substantial benefits to
Class Members (as described in 

  

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Section II. below) under the terms of this Settlement Agreement; (d) the attendant risks of litigation, especially in complex actions such as this, as
well as the difficulties and delays inherent in such litigation; (e) the uncertainty inherent in the various theories of damages, even if Plaintiff could establish any liability on the basis of the allegations in the Complaint; (f) issues
concerning a substantial recovery if verdict were achieved and upheld on appeal; (g) the desirability of consummating this Settlement Agreement promptly in order to provide effective relief to Class Members; and (h) the Parties’
belief that the Settlement is fair, reasonable, and adequate, and in the best interests of Class Members. 
 2. Defendants expressly deny the
wrongdoing alleged in the Complaint and do not concede any wrongdoing or liability in connection with any facts or claims that have been or could have been alleged against them in the Action, but consider it desirable for the Action to be settled
and dismissed because the Settlement will (a) bring to an end the substantial expense, burden, and uncertainty associated with continued litigation of the claims made by Plaintiff; (b) put to rest those claims and the underlying matters;
and (c) confer substantial benefits upon the Defendants including, without limitation, avoiding further expense and disruption of the management and operation of Defendants’ businesses and responsibilities due to the pendency and defense
of the Action. 
  

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 3. This Agreement, the offer of this Agreement, and compliance with this Agreement, shall not constitute
or be construed as an admission by the Defendants or Releasees, or any of them individually, of any wrongdoing or liability. Instead, this Agreement is to be construed solely as a reflection of the Parties’ desire to resolve the claims made in
the Action and the Released Claims. This Agreement shall not be admissible in any judicial, administrative, or other proceeding as an admission of liability or for any purpose other than to enforce the terms of this Agreement. Without limiting the
foregoing, neither this Settlement Agreement nor any related negotiations, statements, or court proceedings shall be construed as, offered as, received as, used as, or deemed to be evidence of, an admission of, or concession of any liability or
wrongdoing whatsoever on the part of any person or entity, including but not limited to Defendants, or as a waiver by any Defendant of any applicable defense. 
 C. Definitions 
 1. As used in this Settlement Agreement, the following terms have the following
meanings, unless a section or subsection of this Settlement Agreement otherwise provides: 
 a. “Action” means the lawsuit
captioned Hal Unschuld v. Tri-S Security Corporation, et al., Civil Action File No. 2006-EV-001333f in the State Court of Fulton County, State of Georgia, including the lawsuit during the time that it was pending in the federal court.

  

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 b. “Administration Expenses” means the Administrator’s fees and all expenses associated
with the administration of the Settlement, as set forth in Section II.A., including but not limited to expenses associated with publishing, printing, and mailing of the Notice and Claim Form to Class Members; assisting Class Members with issues
pertaining to their recoveries; determining Class payment amounts; and distributing the Net Cash Settlement Fund; provided however, that Administration Expenses shall not include any amount of an Attorneys’ Fees and Expenses Award or
Case Contribution Award. 
 c. “Administrator” or “Claims Administrator” means Strategic Claims Services
(“SCS”), 600 N. Jackson Street, Media, Pennsylvania 19063, which shall seek the names and addresses of Class Members from brokerage firms; implement the notice and payment process; administer and distribute the Cash Settlement Fund in
accordance with the terms of the Settlement Agreement and the orders of the Court; respond to Class Member inquiries and provide a toll-free telephone number for that purpose; and perform such other matters as are customarily conducted by class
administrators, as specifically set forth herein, and as ordered by the Court in this Action. 
  

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 d. “Agreement,” “Settlement,” or “Settlement Agreement” mean this Joint
Stipulation of Settlement and Release and the accompanying exhibits, including any subsequent amendments to the Agreement, any exhibits to such amendments, and any amendments to such exhibits. 
 e. “Attorneys’ Fees and Expenses Award” means such amounts as may be awarded to Plaintiff’s Counsel, to be paid from the Cash
Settlement Fund, to compensate them for their fees and expenses incurred in connection with the Action. 
 f. “Case Contribution
Award” means the award to Plaintiff as described in Section VIII.A. below and approved by the Court. 
 g. “Cash Settlement
Fund” means the fund described in Section II.B. below. 
 h. “Cash Settlement Fund Account” means an account or accounts, as
approved by the Court, to be established by and maintained under the control of Plaintiff’s Counsel or the Administrator, into which the Cash Settlement Payment shall be paid, which account(s) shall be maintained as a Qualified Settlement Fund.
Such account(s) will initially be established as interest-bearing, if warranted by commercially available terms. The account(s) need not be interest-bearing at such time as the Administrator is responsible for calculating distributions to Class
Members or thereafter. None of the Parties, their Counsel, 

  

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the Releasees, the Administrator, the Court, nor any other person or entity associated with the Settlement shall bear responsibility for the financial
solvency of such account(s) or the institutions at which the account(s) is held. 
 (i) Such account(s) may be established at PNC Bank
(“PNC”). The funds may be invested in U.S. treasuries at PNC prior to distribution to the Class, and in a non-interest bearing account(s) when the funds come out of escrow for such disbursement. 
 i. “Cash Settlement Payment” means one million dollars ($1,000,000.00), which amount shall be paid by or on behalf of Defendants as provided
herein. 
 j. No class has been certified in the Action. For purposes of this Settlement Agreement only, there will be a stipulated class,
which is defined as: 
 Anyone who purchased or acquired, from February 9, 2005 through November 1, 2007, inclusive, Tri-S:
(i) units issued pursuant to the Company’s February 2005 IPO; (ii) common stock or warrants derived from such units; or (iii) common stock derived from the exercise of such warrants, such purchasers and acquirers constituting the
“Class,” “Settlement Class,” or “Class Members.” The Settlement Class does not include any Defendant, any Immediate Family of any Individual Defendant, any current or former officers or directors of any Corporate
Defendant, any affiliates of any Corporate Defendant, or anyone with a Controlling Interest in a Corporate Defendant. Further, the Settlement does not include shares of Tri-S common stock or warrants issued pursuant to a private placement.

  

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 If, for any reason, the Court does not grant final approval of the Settlement Agreement, the stipulation of class
certification shall be void ab initio. Defendants expressly reserve their rights to oppose class certification should the Settlement Agreement not become final. No doctrine of waiver, estoppel, or preclusion will be asserted based on
this Settlement Agreement in any litigated certification proceedings in this Action or in any other action. 
 k. “Class Period”
means the period of time from February 9, 2005 through November 1, 2007, inclusive. 
 l. The “Company” means each and
all of Tri-S and any or all of its respective parents, subsidiaries, predecessors, successors, affiliates, divisions, business units, and entities in which its has a Controlling Interest or that have a Controlling Interest in it. 
 m. “Complaint” means the class action complaint filed by Plaintiff in the Action on November 1, 2006. 
 n. “Controlling Interest” means an interest in an entity where such interest is sufficient to allow the interest holder directly or indirectly
to direct or cause the direction of the management and policies of the entity, whether through the ownership of voting shares, by contract, or otherwise; provided that any disputes as to whether a Defendant has a Controlling Interest in an
entity or whether an entity has a Controlling Interest in a Corporate Defendant, shall, for purposes of determining whether a Controlling Interest exists under this Settlement Agreement, and for that purpose only, be submitted to the Court for
resolution. 
  

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 o. Tri-S, Capital Growth, and Bathgate are collectively referred to as the “Corporate
Defendants.” 
 p. “Court” means the State Court of Fulton County, State of Georgia in which the Action is now pending.

 q. “Defendants’ Counsel” means Rogers & Hardin LLP. 
 r. “Excluded Class Member” means any Class Member who (i) pursuant to Section V. below, submits a request to be excluded or (ii) is
otherwise excluded from the terms of this Agreement by order of the Court. 
 s. “Fairness Hearing” means the hearing at or after
which the Court will make a final decision whether to approve this Settlement Agreement as fair, reasonable, and adequate pursuant to § 9-11-23 of the Official Code of Georgia Annotated and any other applicable law. 
 t. “Final Judgment” means the judgment entered pursuant to the Final Judgment and Order of Dismissal, substantially in the form of the
proposed Final Judgment and Order of Dismissal attached as Exhibit 5 to this Settlement Agreement. 
  

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 u. “Final Settlement Date” means the date on which the Final Judgment becomes final. For
purposes of this definition, the Final Judgment shall become final: 
 (i) on the date the Court enters the Final Judgment, unless a
Participating Class Member has objected and the objection has been finally ruled on adverse to the Objector and the objection has not been otherwise resolved by agreement; or 
 (ii) other than as provided in the foregoing subparagraph (i), on the date on which the time to appeal the Final Judgment has expired if no appeal is
taken therefrom; or 
 (iii) other than as provided in the foregoing subparagraph (i), if any appeal is taken on the Final Judgment, on the
date on which all such appeals, including petitions for rehearing or reargument, petitions for rehearing en banc, and petitions for certiorari or any other form of review, have been finally disposed of in a manner resulting in an
affirmance of the Final Judgment. 
 v. “Immediate Family” means spouse, parents, grandparents, children, and grandchildren.

 w. Farrell and Stallings are collectively referred to as the “Individual Defendants.” 
  

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 x. “Net Cash Settlement Fund” means the Cash Settlement Payment less: (i) any
Attorneys’ Fees and Expenses Award; (ii) any Administration Expenses; (iii) any Tax Expenses; (iv) any Case Contribution Award; (v) any bank charges for maintaining the Cash Settlement Fund Account; and (vi) such other
sums, if any, as the Court may authorize. 
 y. “Notice” means the notices sent to Class Members pursuant to Section II. below,
substantially in the form of the proposed Notice attached as Exhibit 1 to this Settlement Agreement. 
 z. “Objector” means any
Class Member who files an objection to the Settlement Agreement in accordance with Section VI. below. 
 aa. “Participating Class
Members” are all Class Members who timely file a valid Proof of Claim, other than Excluded Class Members. 
 bb. “Plaintiff’s
Counsel” or “Class Counsel” means Squitieri & Fearon, LLP and Parks, Chesin and Walbert, P.C. 
 cc. “Plan of
Allocation” means the terms and procedures for allocating the Net Cash Settlement Fund among, and distributing the Net Cash Settlement Fund to, Participating Class Members, as more fully described in Section II.D. below. 
 dd. “Preliminary Approval Order” means the order entered by the Court concerning notice, administration, and the date of the Fairness 

  

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Hearing, and preliminarily approving the Settlement, which order shall be substantially in the form of the proposed Preliminary Approval and Notice Order
attached as Exhibit 4 to this Settlement Agreement. 
 ee. “Proof of Claim” or “Claim Form” means the form to be
submitted by Class Members to receive payment(s) from the Net Cash Settlement Fund, which reflects (i) each purchase, acquisition, and/or sale of Tri-S Securities; (ii) the dates of each such purchase, acquisition, and/or sale; and
(iii) the number of Securities purchased, acquired, or sold in each such transaction. The Proof of Claim shall be submitted in substantially the form of the proposed Claim Form attached as Exhibit 3 to this Settlement Agreement. The failure of
a Class Member to timely return a valid Proof of Claim shall not affect his, her, or its status as a Class Member. 
 ff. “Qualified
Settlement Fund” means a fund within the meaning of Treasury Regulation § 1.468B-1. 
 gg. “Release” means the release
and waiver as set forth in Section VII. of this Settlement Agreement. 
 hh. “Released Claims” means all claims, debts, losses,
demands, obligations, liabilities, causes of action, charges, grievances, complaints, or suits of any type or nature that relate to violations of the Securities Act of 1933 as amended (15 U.S.C. §§ 77a et seq.), the Securities
and Exchange Act of 1934 as 

  

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amended (15 U.S.C. §§ 78a et seq.), or any state blue sky, tort law, or common law in connection with the IPO and all claims that could
have been alleged, whether known or unknown, to the date of the Court’s order granting final approval of this Settlement Agreement, arising from the Class Members’ purchase, acquisition, or sale of the Securities. 
 ii. “Releasees” means each and every one of the following: the Company, Bathgate, and Capital Growth and all of their predecessors, present
and former parent companies, subsidiaries, related or affiliated companies, and each of their respective past and present directors, officers, employees, members, managers, co-joint venturers, fiduciaries, trustees, partners, principals, agents,
underwriters, attorneys, advisors, consultants, representatives, insurers, reinsurers, accountants, auditors, successors and assigns, and all persons or entities acting by, through, under, or in concert with any of them, and any individual or entity
that could be jointly liable with any of them; and the Individual Defendants and each of their current, former, and future heirs, executors, trusts, trustees, Immediate Family, administrators, assigns, attorneys, accountants, insurers, reinsurers,
representatives, agents, advisors, and all persons or entities acting by, through, under, or in concert with any of them, and any individual or entity that could be jointly liable with any of them. 
  

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 jj. “Securities,” unless otherwise apparent from the context, means any or all of the Tri-S
(i) units issued pursuant to the Registration Statement and Prospectus; (ii) common stock or warrants derived from such units; or (iii) common stock derived from the exercise of such warrants. “Securities” does not include
Tri-S common stock or warrants issued pursuant to a private placement. 
 kk. “Tax Expenses” means (i) all taxes on the
income of the Cash Settlement Fund and (ii) expenses and costs incurred in connection with the taxation of the Cash Settlement Fund (including, without limitation, expenses of tax attorneys and accountants). 
  

	II.	TERMS AND CONDITIONS OF THE SETTLEMENT 

 A.
Administration Expenses 
 1. The Administrator is hereby authorized to receive the total sum of forty-two thousand dollars ($42,000.00)
from the Cash Settlement Fund in payment for its fees and expenses for performance of its responsibilities hereunder, which include: procuring the names of Class Members from brokers; administering and sending the Notice and Proof of Claim; sending
and processing the Proof of Claim; maintaining a website and toll-free phone number for Class Members to call; distributing payments to Class Members from the Net Cash Settlement Fund; and performing all the other responsibilities of the
Administrator; 

  

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provided that, the Class Administrator shall be entitled to receive such additional payment as may be appropriate, upon approval of the Court, in the event
more than 10,000 individual Notices are mailed or more than 1,200 Claim Forms are received for processing. 
 2. Of the total sum of
forty-two thousand dollars ($42,000.00) that the Administrator is authorized to receive pursuant to this Section II.A., the sum of twenty-eight thousand dollars ($28,000.00) shall be paid from the Cash Settlement Fund to the Administrator upon entry
of the Preliminary Approval Order. That initial payment of $28,000.00 shall not be refundable by the Administrator even if Final Approval does not occur, provided that Notices and Proofs of Claims are distributed as required hereunder.

 3. Neither the Defendants nor their insurer(s) shall bear any obligation or responsibility for any Administration Expenses except for
their obligation to make the Cash Settlement Payment. 
 B. The Cash Settlement Fund 
 1. The Cash Settlement Fund shall consist of the Cash Settlement Payment, which shall be paid in cash by Defendants as follows: 
 a. Within ten (10) calendar days following entry of the Preliminary Approval Order, Tri-S (on behalf of all Defendants) shall pay the Cash
Settlement Payment into the Cash Settlement Fund Account. 
  

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 2. The Cash Settlement Fund shall not be distributed except in accordance with this Settlement Agreement
or by order of the Court as may be necessary or convenient. 
 3. All necessary steps to enable the Cash Settlement Fund Account to be a
Qualified Settlement Fund shall be taken, including the timely filing by the Administrator of all elections and statements required pursuant to Treas. Reg. §§ 1.468B-0 through 1.468B-5, or any other relevant statutes, regulations, or
published rulings now or hereafter enacted or promulgated, for all taxable years of the Cash Settlement Fund Account, beginning with the date of its establishment. The Administrator, on behalf of the Cash Settlement Fund Account, shall file or cause
to be filed on a timely basis all required federal, state, and local tax returns and shall pay taxes, if any, in a manner consistent with its treatment as a Qualified Settlement Fund, as provided in Treas. Reg. §§ 1.468B-0 through
1.468B-5. The approved amount of forty-two thousand dollars ($42,000.00) as Administration Expenses, as set forth in the above Section II.A.1., includes compensation for the Administrator’s filing of one year of such returns. In the event
additional years’ returns are required, the Administrator may seek additional compensation from the Cash Settlement Fund. 
 4. In no
event shall Defendants have any responsibility for filing election or other required statements or tax returns in connection with the Cash 

  

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Settlement Fund, the costs associated therewith, or the payment of any taxes due thereon. Defendants and Plaintiff and their counsel shall cooperate with the
Administrator to the extent necessary to ensure compliance with the provisions of this Section II.B. of the Agreement. 
 5. Upon request by
the Company, the Administrator shall promptly provide it with all information requested in connection with any tax returns the Company must file or other report or filing the Company must make with respect to the Cash Settlement Payment. 

C. The Net Cash Settlement Fund 
 1. Any Attorneys’ Fees and Expenses Award, Administration Expenses, Tax Expenses, Case Contribution Award, and bank charges for maintaining the Cash Settlement Fund Account shall be paid out of the Cash Settlement Fund. 
 2. The balance of the Cash Settlement Fund Account, after all items listed above in Section II.C.1. and any amounts otherwise authorized by the Court to
be paid, shall be the Net Cash Settlement Fund. 
 3. In no event shall any of the monies paid into the Cash Settlement Fund Account be
refunded to Defendants or their insurer(s), unless Final Judgment is not entered or the Agreement is otherwise terminated by a Party under the terms of this Settlement Agreement. 
  

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 4. The Net Cash Settlement Fund shall be distributed to Participating Class Members pursuant to the Plan
of Allocation, as described below. 
 D. Plan of Allocation 
 1. Plaintiff proposes this Plan of Allocation pursuant to which the Net Cash Settlement Fund shall be distributed to Participating Class Members, subject
to the approval by the Court of the Plan of Allocation. No person shall have any claim against Plaintiff, Plaintiff’s Counsel, the Administrator, or any of their agents regarding distributions or failure to distribute funds from the Net Cash
Settlement Fund, provided that distributions are made substantially in accordance with the Plan of Allocation, this Settlement Agreement, and orders of the Court. 
 2. The Defendants, Releasees, and/or their respective counsel shall have no role in, responsibility for, or liability with respect to: the Plan of Allocation; the form, substance, method, or manner of administration,
of the Net Cash Settlement Fund; any tax liability that a Class Member may incur as a result of this Settlement Agreement or as a result of any action taken pursuant to this Settlement Agreement; the administration or processing of claims or the
allocation of the Net Cash Settlement Fund, including, without limitation, determinations as to the validity of Claim Forms, the amounts of claims, or the distribution of the Net Cash Settlement Fund. 
  

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 3. Class Members shall look solely to the Net Cash Settlement Fund for settlement and satisfaction of all
Released Claims. Except as expressly provided by this Settlement Agreement, the Plan of Allocation, or by order of the Court, no Class Members shall have any interest in the Cash Settlement Fund or any portion of the Cash Settlement Fund.

 4. All disputes relating to the Administrator’s performance of its duties shall, if necessary, be referred to the Court. The Court
shall have continuing jurisdiction over the terms and conditions of this Settlement Agreement until all payments and obligations contemplated by this Agreement have been fully carried out. 
 5. Losses for each Class Member who submits a valid Claim Form shall be the difference between the gross proceeds at sale and the gross cost at purchase
or acquisition of the Securities, exclusive of all transaction costs; provided that, for Securities that had not been sold as of November 1, 2007, the sale price will be deemed to be the closing price on November 1, 2007. 
 a. For Class Members who purchased units and later sold common stock or warrants that were derived from the units, the value of the common stock or
warrants derived from each unit will be allocated values in the proportion of $5.90/$0.10 for the common stock and warrants, respectively. 
  

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 6. The Plan of Allocation allocates the Net Cash Settlement Fund to Participating Class Members by:
(1) determining their losses (exclusive of all transaction costs) and (2) adjusting or weighting those losses as set forth below. Each Participating Class Member will receive from the Net Cash Settlement Fund his, her, or its proportional
share of that fund, determined by dividing the Participating Class Member’s total adjusted losses by the total adjusted losses for all Participating Class Members; provided that, the amount to be distributed to Participating Class Members who
purchased Securities after November 1, 2006 shall not exceed 10% of the total Net Cash Settlement Fund. 
 7. Losses of Participating
Class Members shall be adjusted as follows: 
 a. For Securities acquired prior to November 2, 2005, losses will be multiplied:
(1) by a factor of 1.0 if sold on or before November 2, 2005; (2) by a factor of 1.15 if sold after November 2, 2005 and on or before February 27, 2006; or (3) by a factor of 1.25 if sold after February 27, 2006 or
if not sold. 
 b. For Securities acquired on or after November 2, 2005, but before February 27, 2006, losses shall be multiplied:
(1) by a factor of 0.8 if sold on or before February 27, 2006 or (2) by a factor of 1.0 if sold after February 27, 2006 or if not sold. 
  

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 c. For securities acquired on or after February 27, 2006, the losses shall be multiplied by a
factor of 0.7. 
 8. The Administrator will send by first-class United States mail, postage prepaid, to the Participating Class Members their
share of the Net Cash Settlement Fund, as determined pursuant to the foregoing procedures, such checks to be mailed to the last known address of the Participating Class Members no later than thirty (30) days after the deadline for submitting
Claim Forms or the Final Settlement Date, whichever occurs later. Those checks shall be designated as void after ninety (90) days, and for any checks not cashed within that time period, the respective Participating Class Members will have no
further right of recovery from the Net Cash Settlement Fund or otherwise. Promptly after the expiration of the ninety (90) day period, the Administrator will determine the balance in the Net Cash Settlement Fund. If that sum exceeds the cost of
a second distribution, the Administrator will make a second distribution to the Participating Class Members whose initial distribution checks were negotiated, after deducting the cost of the second distribution from the balance remaining in the Net
Cash Settlement Fund. Those Participating Class Members will receive an amount from that net balance that reflects the proportion of their adjusted losses to the total adjusted losses of those Participating Class Members entitled to participate in
the second distribution. The checks in any such second distribution will also be marked void after the 

  

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expiration of ninety (90) days. If there are any funds remaining in the Net Cash Settlement Fund after the foregoing distribution(s), the Parties may
petition the Court for a cy pres distribution to an appropriate charity or otherwise. In no event will any remaining funds revert to any of the Defendants or Releasees. 
 9. Within fifteen (15) days after each distribution is made, the Administrator shall provide Plaintiff’s Counsel and Defendants’ Counsel
with a report listing the amount of all payments made to each Participating Class Member. Following the distribution of all funds from the Net Cash Settlement Fund, the Administrator shall provide Plaintiff’s Counsel and Defendants’
Counsel with a statement of all payments made from the Cash Settlement Fund Account. Plaintiff’s Counsel will file such statement of payment with the Court. 
  

	III.	NOTICE TO THE CLASS AND PROOFS OF CLAIM 

 A.
Identification of Class Members 
 1. Within ten (10) days of the date this Agreement is executed, to the extent such information is
within their possession, custody, or control, Defendants will provide to the Administrator and Plaintiff’s Counsel the name and last known address of (1) initial purchasers in the IPO, (2) the record owners of Tri-S Securities from
the date of the IPO through November 1, 2007, and (3) the names of persons or entities to whom Tri-S issued common stock or warrants as part of private placements during the Class Period. Such information will be 

  

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provided by Defendants in an appropriate electronic format to readily permit automated mailings to the potential Class Members. Further, the Administrator
shall be granted reasonable access to Defendants’ records in order to perform its duties. The Administrator and Plaintiff’s Counsel agree to use all information provided pursuant to this paragraph solely for the purposes of effectuating
this Settlement Agreement. They further agree to comply with all state and federal laws that protect the privacy of the owners of Tri-S common stock and warrants. 
 2. Upon entry of the Preliminary Approval Order, the Administrator will promptly use reasonable and customary efforts to obtain from brokerage firms the names and addresses of all beneficial owners who purchased or
acquired the Securities during the Class Period. 
 B. Mailing and Publication of the Notice and Proofs of Claim 
 1. Subject to the requirements of the Preliminary Approval Order, the Administrator shall cause a copy of the Notice and Proof of Claim to be mailed by
first-class United States mail, postage prepaid, to each potential Class Member whose name and address were obtained pursuant to the foregoing Section III.A. of this Agreement, such mailing to occur no later than seven (7) days after
(a) the entry of the Preliminary Approval Order or (b) each receipt of Class Members’ names and addresses to the extent such information is obtained by the Administrator after the entry of the Preliminary Approval Order. 

 

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 2. A copy of the proposed Notice is attached as Exhibit 1 to this Agreement. 
 3. The Administrator shall also: (1) publish a Summary of Notice, in substantially the same form as Exhibit 2 to this Agreement, in the national
edition of Investor Business Daily no later than ten (10) days after entry of the Preliminary Approval Order and (2) cause a copy of such Summary of Notice to be delivered to a service for newswire publication in the customary
fashion. 
 4. A Claim Form shall be mailed by the Administrator along with each Notice. A copy of the proposed Claim Form is attached as
Exhibit 3 to this Agreement. 
 5. Upon substantial completion of the requirements of this Section III.B. by the Administrator, the Parties
shall be deemed to have satisfied their obligation to provide Notice to the Class and Class Members shall be bound by all the terms of the Settlement Agreement on entry of the Final Judgment. 
 C. Submitting Proofs of Claim 
 1.
Proofs of Claim must be received by the Administrator within seventy-five (75) days of the date the Preliminary Approval Order is entered. In order to be valid, Proofs of Claim must: (i) be completed in full, signed, and timely submitted;
(ii) be accompanied by adequate supporting documentation for the transactions reported therein, in the form of broker confirmation slips, broker 

  

 - 28 - 

 
account statements, an authorized statement from the broker containing the transactional information found in a broker confirmation slip, or such other
documentation as is deemed adequate by the Administrator; and (iii) contain no material deletions or modifications of any of the printed matter contained therein. Further, if the person executing the Proof of Claim is acting in a representative
capacity, a certification of his, her, or its current authority to act on behalf of the Class Member must be included in the Proof of Claim. 
 2. By returning a Claim Form, each Class Member thereby submits to the jurisdiction of the Court with respect to the claim submitted. 
 3. If the Claim Form is deficient in any material manner (as determined by the Administrator), the Administrator may use reasonable and customary efforts, in its sole discretion, to advise the Class Member of the deficiency. Any
corrected Claim Form must be timely received so as not to delay, in the judgment of the Administrator, distributions to Participating Class Members pursuant to Section II.D.8. 
 4. Notices and Claim Forms returned to the Administrator as undeliverable during the period for filing claims shall be re-mailed promptly to the
forwarding address, if any, on the returned envelope; if no forwarding address is given, the Administrator shall skip-trace the Class Member in the customary fashion, provided that the Administrator need not skip-trace a Class Member more

  

 - 29 - 

 
than one time. Any delays incurred because of returned or undelivered mail will not extend any of the deadlines provided in the Agreement, including the
deadlines for objecting, opting-out, or submitting a Claim Form to the Administrator. 
 5. At least five (5) days prior to the Fairness
Hearing, the Administrator shall provide to the Court a declaration of mailing the Notice and Claim Forms in compliance with this Agreement. 
 6. Claim Forms need not be honored if received untimely; the Administrator shall have the discretion to process an untimely Claim Form if it first determines that doing so will not delay or otherwise disrupt the Administration process.

 7. All Claim Forms shall be sent directly by Class Members to the Administrator at the address indicated on the form. The Administrator
will certify to both Plaintiff’s Counsel and Defendants’ Counsel which Claim Forms are valid at least five (5) days before beginning distribution to Participating Class Members from the Net Cash Settlement Fund. 
  

	IV.	RIGHT TO COMMUNICATE WITH CLASS MEMBERS 

 A.
The Company may communicate orally and in writing with, and respond to inquiries from, Class Members, including (without limitation): 
 1. Communications between Class Members and officers, employees, and agents of the Company who, in the course of their regular duties 

  

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for the Company have communications with the Company’s shareholders. The Company will direct such officers, employees, and agents to refer any inquires
from Class Members to designated officers and employees of the Company who have been educated about the Action and the Settlement Agreement; and 
 2. Communications as may be necessary to implement the terms of this Settlement Agreement. 
 3. Such communications shall not
permit the Company’s agents or employees to disparage the Settlement, to encourage Class Members to object to or opt-out of the Settlement, or to encourage Class Members not to submit a Proof of Claim. 
 B. Plaintiff, Plaintiff’s Counsel, Defendants, and Defendants’ Counsel agree to cooperate in good faith to ensure that (1) any
comments about or descriptions of the proposed settlement are balanced, fair, and accurate and (2) any press releases discussing the Settlement Agreement are reviewed and approved by Plaintiff’s Counsel and Defendants’ Counsel before
dissemination or publication, which approval shall not unreasonably be withheld; provided however, that Defendants shall be able to make, without notification to, or prior review or approval by, Plaintiff’s Counsel, any and all
disclosures regarding the Settlement Agreement that Defendants believe in good faith may be required under applicable law, by the terms of its applicable insurance policies or lending agreements, or by the rules of any stock exchange, or as required
in connection with a judicial, administrative, or regulatory proceeding. 
  

 - 31 - 

 C. In no event shall this Settlement Agreement be construed to prohibit, limit, or restrict the
Company’s communications to and with its shareholders that occur in the normal course of business or concerning matters unrelated to the Action or Settlement Agreement. 
 D. Defendants and their counsel agree that they will not attempt to discourage Class Members from filing Proofs of Claim. It is understood that
Plaintiffs’ Counsel may provide legal advice and counsel only to those Class Members who initiate and seek such advice from Plaintiff’s Counsel. Plaintiffs’ Counsel will not initiate contact with Class Members for purposes of filing a
claim or attempt to encourage Class Members to file Proofs of Claim. 
  

	V.	REQUESTS FOR EXCLUSION 

 A. Any Class Member
who wishes to be excluded from the Class must mail or deliver a written request for exclusion to the Administrator, care of the address provided in the Notice, so as to be received no later than ten (10) days before the initial scheduled date
of the Fairness Hearing. A list of the persons and entities who have requested exclusion shall be provided by the Administrator to the Parties and the Court by five (5) days before the Fairness Hearing. 
  

 - 32 - 

 B. The request for exclusion shall include the following information: (1) the Class
Member’s name, address, and telephone number; (2) each purchase, acquisition, or sale of the Securities made by the Class Member; (3) the dates of each such purchase, acquisition, or sale; and (4) the number of shares of the
Securities purchased, acquired, or sold in each such transaction. Failure to include the information in (2) through (4) will not render the request for exclusion invalid. 
 C. If Class Members who hold or held more than a combined total of five percent (5%) of outstanding Tri-S common stock and/or warrants
request exclusion from the Settlement Class, Defendants shall have the right in their sole discretion to rescind and void the Settlement Agreement at any time prior to the Fairness Hearing by giving written notice to Plaintiff’s Counsel by
mail, facsimile, or e-mail, and by filing such notice with the Court. The Administrator will notify Defendants’ Counsel and Plaintiff’s Counsel no later than five (5) days before the Fairness Hearing of the total number of Securities
held by Class Members who request exclusion. 
 D. Unless otherwise ordered by the Court, any Class Member who does not file a timely
written request for exclusion shall be bound by this Settlement Agreement, the Release, and by all proceedings, orders, and judgments in this Action, even if he, she, or it has pending, or subsequently initiates, litigation, arbitration, or any
other action against any or all of the Defendants or the Releasees relating to the Released Claims. 
  

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	VI.	OBJECTIONS TO SETTLEMENT 

 A. Any Class
Member, other than an Excluded Class Member, who wishes to object to the fairness, reasonableness, or adequacy of this Settlement Agreement; to any terms of the proposed Settlement Agreement or the Plan of Allocation; or to the proposed
Attorneys’ Fees and Expenses Award or the Case Contribution Award must serve on Plaintiff’s Counsel and Defendants’ Counsel and file with the Court at least ten (10) days before the initial scheduled date of the Fairness Hearing
a statement of any and all objections, as well as the specific reason(s), if any, for each objection; the legal authority in support of each objection; and, either a copy of any evidence the Objector desires to submit to the Court or, if such
evidence is oral, a detailed summary of such evidence. 
 B. The objection must indicate, for Securities the Objector purchased,
acquired, or sold during the Class Period, (1) the number of such Securities purchased, acquired, or sold and (2) the date(s) and price(s) of each purchase, acquisition, and sale. 
 C. Class Members may file an objection on their own, or through an attorney hired at their own expense. In no event shall an Excluded Class Member
be permitted to object to this Settlement Agreement. 
  

 - 34 - 

 D. Any Objector may appear at the Fairness Hearing, either in person or through counsel hired at
the Objector’s expense, to object to the fairness, reasonableness, or adequacy of this Settlement Agreement; to any terms of the Settlement Agreement or the Plan of Allocation; or to the proposed Attorneys’ Fees and Expenses Award or the
Case Contribution Award. No Class Member may individually or through counsel present evidence or oral or written argument at the Fairness Hearing unless that Class Member previously filed an objection with the Court (1) in accordance with
Sections VI.A. and VI.B. above and (2) which states “I hereby give notice that I intend to appear at the Fairness Hearing in the Tri-S Securities Litigation.” At the Fairness Hearing, the Objector shall be precluded from making any
objection or asserting any grounds therefor beyond what is contained in such objection. 
 E. Any Class Member who fails to comply
with any of the provisions of this Section shall waive and forfeit any and all rights he, she, or it may have to appear separately and/or object at the Fairness Hearing, and shall be bound by all terms of this Settlement Agreement, the Final
Judgment, and all other proceedings, orders, and judgments in this Action. 
  

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	VII.	RELEASE AND WAIVER 

 A. Release and Waiver 

 1. Without further action by anyone, on and after the Final Settlement Date, each Class Member (other than Excluded Class Members),
including Class Members who are parties to any other actions, arbitrations, or other proceedings against any of the Defendants or Releasees that are pending on the Final Settlement Date, on behalf of himself, herself, or itself, and his, her or its
heirs; Immediate Family; executors; administrators; predecessors; successors; assigns; agents; attorneys; any person or entity with a Controlling Interest in the Class Member; any person claiming by or through the Class Member; and any person the
Class Member represents, for good and sufficient consideration, the receipt and adequacy of which are hereby acknowledged, shall be deemed to have, and by operation of law and of the Final Judgment shall have, fully, finally, and forever released,
relinquished, settled, and discharged all Released Claims against each and every one of the Releasees, including such Released Claims as already may have been asserted in any pending actions, arbitrations, or other proceedings, and whether or not a
Proof of Claim is executed and delivered by, or on behalf of, such Class Member; provided however, that nothing in the judgment shall bar any action or claim by the Parties to enforce the terms of the Settlement Agreement or the Final
Judgment; provided further, that each Class Member (other than 

  

 - 36 - 

 
Excluded Class Members), including Class Members who are parties to any other actions, arbitrations, or other proceedings against any of the Defendants or
Releasees that are pending on the Final Settlement Date, on behalf of himself, herself, or itself, and his, her, or its current, former, and future heirs; Immediate Family; executors; administrators; predecessors; successors; assigns; agents;
attorneys; any person or entity with a Controlling Interest in the Class Member; any person or entity claiming by or through the Class Member; and any person the Class Member represents, for good and sufficient consideration, the receipt and
adequacy of which are hereby acknowledged, shall be deemed to have, and by operation of law and of the Final Judgment shall have, fully, finally, and forever released, relinquished, settled, and discharged all claims as to any or all Parties or
Releasees that relate in any way to any acts, omissions, nondisclosures, facts, matters, transactions, occurrences, or oral or written statements or representations made in connection with or directly or indirectly relating to the Settlement
Agreement or the settlement of the Action. 
 2. Without further action by anyone, on and after the Final Settlement Date, each Releasee, on
behalf of himself, herself, or itself, and his, her, its heirs; Immediate Family; executors; administrators; predecessors; successors; assigns; agents; and attorneys, for good and sufficient consideration, the receipt and adequacy of which are
hereby acknowledged, shall be deemed to have, and by 

  

 - 37 - 

 
operation of law and of the Final Judgment shall have, fully, finally, and forever released, relinquished, settled, and discharged all claims against each
and every one of the following: Plaintiff, Plaintiff’s Counsel, and the Class Members (other than Excluded Class Members) based upon, arising out of, or relating to the institution, prosecution, or resolution of the Action or the Released
Claims; provided however, that nothing in this Agreement shall bar any action or claim by the Parties to enforce the terms of the Settlement Agreement or the Final Judgment. 
 3. The Class Members (other than Excluded Class Members) expressly waive any claim or right to assert hereafter that any claim, demand, obligation, or
cause of action has, through ignorance, oversight, or error, been omitted from the terms of this Settlement Agreement. 
 4. It is the
intention of the Parties that Plaintiff and the Class Members (other than Excluded Class Members) shall be deemed to, and by operation of the Final Judgment, shall knowingly, willingly, and expressly waive, release, and relinquish any and all
provisions, claims, rights, and benefits they may have under any statute or law that provides that a release does not extend to claims that the creditor does not know or suspect to exist in his, her, or its favor at the time of executing the
release, which if known by him, her, or it could have materially affected his, her, or its settlement with the debtor. Each Class Member (other than Excluded Class Members) waives his, her, or its rights under Section 1542 of the California
Civil Code, which states: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in his or her
favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 
  

 - 38 - 

 The Class Members (other than Excluded Class Members) make these waivers with full knowledge of their rights and with the
specific intent to release all known and unknown claims arising on or before the Final Judgment in this Action, and therefore specifically waive the provisions of any statute in any state of the United States which prevents release of unknown
claims. These waivers are intended to include any and all Released Claims, including those Released Claims that are not now known or suspected to exist, notwithstanding the fact that the Class Member may have material information about or knowledge
of such claims, and that this Settlement Agreement extinguishes all such released claims. These waivers were separately bargained for and are a key element of the Settlement Agreement. 
  

	VIII. 	ATTORNEYS’ FEES AND EXPENSES AND THE CASE CONTRIBUTION AWARD TO PLAINTIFF 

 A. Class Counsel will make an application to the Court for: 
 1. an award of attorneys’ fees in
the amount of one-third ($333,333.33) of the Cash Settlement Payment, plus Plaintiff’s counsel’s expenses; and 
  

 - 39 - 

 2. a Case Contribution Award to Plaintiff (which shall not exceed $20,000) to be paid from the Cash
Settlement Fund Account. 
 B. Any Attorneys’ Fees and Expenses Award or Case Contribution Award approved by the Court shall be
paid out of the Cash Settlement Fund Account within five (5) days after entry of the Final Judgment. 
 C. Each law firm that has
served as Class Counsel, as a condition of receiving the Attorneys’ Fees and Expenses Award, on behalf of themselves and each partner and/or shareholder of such law firm, agrees that each such law firm and its partners and/or shareholders are
subject to the jurisdiction of the Court for all purposes, including the allocation of fees among counsel, should there be any disagreement among them. 
 D. In consideration for the work already performed in this case and all work remaining to be performed in completing the Settlement, securing Court approval of the Settlement Agreement, administering the
Settlement Agreement, ensuring that the Settlement Agreement is fairly implemented, and obtaining entry of Final Judgment and dismissal with prejudice of the Action, and subject to final approval and/or modification by the Court, Defendants agree
not to oppose Plaintiff’s motion for an Attorneys’ Fees and Expenses Award provided that it does not exceed the amount identified in Section VIII.A. of this Settlement Agreement. The effectiveness of the Settlement Agreement will not be
conditioned upon the Court’s approval of an Attorneys’ Fees and Expenses Award or of a Case Contribution Award. 
  

 - 40 - 

 E. Neither the Defendants nor any Releasees nor their past, present, or future officers,
directors, employees, agents, attorneys, or representatives, nor any of their predecessors, successors, parents, subsidiaries, partners, principals, affiliates, heirs, administrators, executors, successors in interest, or assigns, shall be liable or
obligated to pay or incur any Administration Expenses, Attorneys’ Fees and Expense Award, Case Contribution Award, Tax Expenses, or any other expenses or costs on behalf of any person, either directly or indirectly, in connection with this
Action or this Settlement Agreement, except to the extent that Defendants are obligated to make the Cash Settlement Payment as provided for in Section II.B.1. of this Settlement Agreement. 
  

	IX.	PRELIMINARY APPROVAL ORDER 

 A. Promptly upon
execution of the Settlement Agreement, the Parties shall submit the Settlement Agreement to the Court and apply for a Preliminary Approval Order. The Preliminary Approval Order shall be in substantially the form provided in the attached Exhibit 4.
Among other things, that order will incorporate the provisions of this Settlement Agreement. In so ordering the Preliminary Approval Order, the Court will be preliminarily approving both the substantive terms of this Settlement Agreement and the
procedural mechanisms and requirements for the Parties, the Administrator, and Class Members. 
  

 - 41 - 

 B. Among other things, the Preliminary Approval Order will thus: 
 1. provide for the certification of the Class for settlement purposes only; 
 2. find that the proposed settlement is sufficient to warrant sending notice to the Class; 
 3. schedule the
Fairness Hearing to be held on such date as the Court may direct, to consider the fairness, reasonableness, and adequacy of the proposed settlement and whether it should be approved by the Court; 
 4. approve the proposed Notice, Proof of Claim, and the notice methodology described in this Settlement Agreement; 
 5. direct the Administrator to cause the Notice and Proof of Claim to be provided to potential Class Members as provided herein; 
 6. determine that the notice to be provided to Class Members, including the Notice, the Proof of Claim, and the methodology employed to disseminate both,
(a) is the best practicable notice under the circumstances; (b) is reasonably calculated, under the circumstances, to apprise Class Members of the pendency of the Action, of their right to object to or to exclude themselves from the
proposed settlement, and of their right to appear at the Fairness Hearing; (c) is 

  

 - 42 - 

 
reasonable and constitutes due, adequate, and sufficient notice to persons entitled to receive notice; and (d) meets all applicable requirements of the
Georgia Code, the United States Constitution (including the Due Process Clause), the Rules of the Court, and any other applicable law; 
 7.
require each Class Member who wishes to exclude himself, herself, or itself from the Class to submit a valid and timely written request for exclusion, so as to be received by the Administrator at the address provided in the Notice no later than ten
(10) days before the initial scheduled date of the Fairness Hearing; 
 8. preliminarily enjoin all Class Members from filing,
commencing, prosecuting, intervening in, participating in as class members or otherwise, or receiving any benefits or other relief from, any other lawsuit, arbitration, order, or administrative, regulatory, or other proceeding in any jurisdiction,
based on or relating in any way to the claims and causes of action, or the facts and circumstances relating thereto, in this Action and/or the Released Claims; 
 9. rule that any Class Member who does not submit a valid and timely written request for exclusion from the Class will be bound by all proceedings, orders, and judgments in this Action relating to this Settlement
Agreement; 
  

 - 43 - 

 10. require each Class Member (other than Excluded Class Members) who wishes to object to: the fairness,
reasonableness, or adequacy of this Settlement Agreement; any terms of the proposed Settlement Agreement or the Plan of Allocation; or the proposed Attorneys’ Fees and Expenses Award or Case Contribution Award, to deliver to Plaintiff’s
Counsel and Defendants’ Counsel and to file with the Court at least ten (10) days before the initial scheduled date of the Fairness Hearing, or at such other time as the Court may direct, any and all objections, as well as the specific
reason(s), if any, for each objection; the legal authority in support of each objection; and, either a copy of any evidence the Objector desires to submit to the Court or, if such evidence is oral, a detailed summary of such evidence, or be forever
barred from objecting; 
 11. require any attorney hired by a Class Member at the Class Member’s expense for the purpose of objecting to
this Settlement Agreement, the proposed settlement, the Attorneys’ Fees and Expenses Award, or the Case Contribution Award to file with the Clerk of the Court and deliver to Plaintiff’s Counsel and Defendants’ Counsel a notice of
appearance at least ten (10) days before the initial scheduled date of the Fairness Hearing, or as the Court otherwise may direct; 
 12. require any Objector who intends to make an appearance at the Fairness Hearing, either in person or through counsel hired at the Objector’s 

  

 - 44 - 

 
expense, to deliver to Plaintiff’s Counsel and Defendants’ Counsel and file with the Court at least ten (10) days before the initial scheduled
date of the Fairness Hearing, or as the Court otherwise may direct, a notice of intention to appear; 
 13. direct Defendants’ Counsel
and Plaintiff’s Counsel to promptly furnish each other with copies of any and all objections or written requests for exclusion that might come into their possession; and 
 14. contain any additional provisions that might be necessary to implement and administer the terms of this Settlement Agreement and the proposed
settlement. 
  

	X.	FINAL APPROVAL, AND FINAL JUDGMENT AND ORDER OF DISMISSAL 

 A. In conjunction with the Fairness Hearing, the Parties shall seek and obtain from the Court a Final Judgment. The Final Judgment shall be in substantially the form provided in the attached Exhibit 5. Among other things, that order
will incorporate the provisions of this Settlement Agreement. In so ordering the Final Judgment, the Court will be finally approving both the substantive terms of this Settlement Agreement and the procedural mechanisms and requirements for the
Parties, the Administrator, and Class Members. 
 B. Among other things, the Final Judgment will thus: 
 1. find that the Court has personal jurisdiction over all Class Members and that the Court has subject matter jurisdiction to approve this Settlement
Agreement and all exhibits thereto; 
  

 - 45 - 

 2. approve this Settlement Agreement as fair, reasonable, adequate, consistent, and in compliance with
all applicable requirements of the Georgia Code, the United States Constitution (including the Due Process Clause), the Rules of the Court, and any other applicable law, and as being in the best interests of each of the Parties and the Class
Members; direct the Parties and their counsel to implement and consummate this Settlement Agreement according to its terms and provisions; and declare this Settlement Agreement to be binding on, and, as to all Released Claims, to have res
judicata and other preclusive effect in all pending and future lawsuits or other proceedings maintained by or on behalf of, Plaintiff and all other Class Members (other than Excluded Class Members), as well as their heirs, executors,
administrators, predecessors, successors, affiliates, and assigns; 
 3. finally certify the Class for settlement purposes; 
 4. find that the Notice, the Proof of Claim, and the notice methodology implemented pursuant to this Settlement Agreement (i) constituted the best
practicable notice, under the circumstances; (ii) constituted notice that was reasonably calculated, under the circumstances, to apprise Class Members of the 

  

 - 46 - 

 
pendency of the Action, of their right to object to or to exclude themselves from the proposed settlement, and of their right to appear at the Fairness
Hearing; (iii) were reasonable and constituted due, adequate, and sufficient notice to persons entitled to receive notice; and (iv) met all applicable requirements of the Georgia Code, the United States Constitution (including the Due
Process Clause), the Rules of the Court, and any other applicable law; 
 5. find that Plaintiff’s Counsel and Plaintiff adequately
represented the Class for purposes of entering into and implementing the Settlement; 
 6. dismiss the Action (including all individual
claims and Class claims presented thereby) with prejudice, without fees or costs to any Party, except as provided in this Settlement Agreement; 
 7. incorporate the Release set forth above in Section VII., make the Release effective as of the Final Settlement Date, and forever discharge the Releasees from any and all claims or liabilities arising from or related to the Released
Claims; 
 8. permanently bar and enjoin all claims by any person (other than Tri-S) against the Releasees arising under state, federal,
or common law, however styled, whether for indemnification or contribution, or otherwise denominated that are based upon, arise out of, or relate to this Action, the Released Claims, or the transactions and occurrences referred to in the Complaint.

  

 - 47 - 

 9. authorize the Parties, without further approval from the Court, to agree to and to adopt such
amendments, modifications, and expansions of this Settlement Agreement and all exhibits attached to the Settlement Agreement as (a) are not materially inconsistent with the Final Judgment and (b) do not materially limit the rights of Class
Members under the Settlement Agreement; 
 10. without affecting the finality of the Final Judgment for purposes of appeal, retain
jurisdiction as to all matters relating to the administration, consummation, enforcement, and interpretation of this Settlement Agreement and the Final Judgment, and for any other necessary purpose; and 
 11. incorporate any other provisions that the Court deems necessary and just. 
  

	XI.	MODIFICATION OR TERMINATION OF THIS AGREEMENT 

 A. The terms and provisions of this Settlement Agreement may be amended, modified, or expanded by written agreement of the Parties and approval of the Court; provided however, that after entry of the Final Judgment the Parties
may by agreement effect such amendments, modifications, or expansions of this Settlement Agreement and the exhibits attached thereto without notice to or approval by the Court if such changes are not materially inconsistent with the Court’s
Final Judgment and do not materially limit the rights of Class Members under the Settlement Agreement. 
  

 - 48 - 

 B. This Settlement Agreement will terminate at the sole option and discretion of Defendants or
Plaintiff if (1) the Court, or any appellate court(s), rejects, modifies, or denies approval of any portion of this Settlement Agreement or the proposed settlement that the Party or Parties reasonably and in good faith determine is material,
including, without limitation, the terms of relief, the findings of the Court, the provisions relating to notice, the definition of the Class and/or the terms of the Release or (2) the Court, or any appellate court(s), does not enter or
completely affirm, or alters or expands, any portion of the Final Judgment, or any of the Court’s findings of fact or conclusions of law as proposed by the Defendants’ Counsel and Plaintiff’s Counsel, that the terminating Party or
Parties reasonably and in good faith believe(s) is material. The terminating Party or Parties must exercise the option to withdraw from and terminate this Settlement Agreement, as provided in this Section, no later than twenty (20) days
after receiving actual notice of the event prompting the termination, by providing written notice to all other Parties and filing such notice with the Court. 
 C. Notwithstanding the preceding paragraph, Plaintiff may not terminate this Settlement Agreement because of the Attorneys’ Fees and Expenses Award or Case Contribution Award ordered by the Court or any
appellate court(s), provided that Plaintiff and Plaintiff’s Counsel shall have the right to appeal or otherwise contest any such court orders adverse to their positions. 
  

 - 49 - 

 D. If this Settlement Agreement is terminated, then: 
 1. this Settlement Agreement shall be null and void and shall have no force or effect, and no Party to this Settlement Agreement shall be bound by any of
its terms; 
 2. this Settlement Agreement, all of its provisions, and all negotiations, statements, and proceedings relating to it shall be
without prejudice to the rights of Defendants, Plaintiff, or any other Class Member, all of whom shall be restored to their respective positions existing immediately before the execution of this Settlement Agreement; 
 3. Defendants, Releasees, and their current or former directors, officers, employees, heirs, assigns, agents, trustees, partners, attorneys, and
representatives expressly and affirmatively reserve all defenses, arguments, and motions as to all claims that have been or might later be asserted in the Action, including (without limitation) any argument that the Action may not be litigated
as a class action; 
 4. Plaintiff and his successors, heirs, agents, attorneys, representatives, and assigns expressly and affirmatively
reserve all motions as to, and arguments in support of, all claims that have been or might later be asserted in the Action, including (without limitation) any argument concerning class certification; 
  

 - 50 - 

 5. neither this Settlement Agreement, nor the fact of it having been made, shall be admissible or entered
into evidence in any action for any purpose whatsoever; 
 6. Plaintiff, Plaintiff’s Counsel, or the Administrator shall promptly return
to the Company the full Cash Settlement Payment (including any interest accrued); 
 7. any order or judgment entered in the Action after the
date of this Settlement Agreement will be deemed vacated and will be without any force or effect. 
  

	XII.	GENERAL MATTERS AND RESERVATIONS 

 A. The
obligation of the Parties to conclude the proposed settlement is and will be contingent upon Defendants timely making the Cash Settlement Payment in full and without condition or reservation other than as expressly provided for in this Settlement
Agreement. 
 B. Plaintiff’s Counsel represent that they are authorized to enter into this Settlement Agreement on behalf of
Plaintiff with respect to the claims in this Action. 
  

 - 51 - 

 C. Plaintiff represents and certifies that he: (1) has agreed to serve as a representative of
the Class proposed to be certified herein; (2) has authorized Class Counsel to execute this Settlement Agreement on his behalf; and (3) will remain and serve as a representative of the Class until the terms of this Settlement Agreement are
effectuated or this Settlement Agreement is terminated in accordance with its terms. 
 D. Defendants’ Counsel represent that
they are authorized to enter into this Settlement Agreement on behalf of the Defendants. 
 E. The Parties and their counsel
represent, covenant, and warrant that they have not directly or indirectly, assigned, transferred, encumbered, or purported to assign, transfer, or encumber any portion of any liability, claim, demand, action, cause of action, or rights herein
released and discharged except as set forth herein. 
 F. This Settlement Agreement (including the exhibits attached thereto) sets
forth the entire agreement among the Parties with respect to this subject matter, and may not be altered or modified except by written instrument executed by Plaintiff’s Counsel and Defendants’ Counsel. The Parties expressly acknowledge
that no other agreements, arrangements, or understandings not expressed in this Settlement Agreement exist among or between them. In entering into this Settlement Agreement, no Party has relied upon any representation or warranty not set forth
expressly herein. 
  

 - 52 - 

 G. If there is any inconsistency between this Joint Stipulation of Settlement and Release on the
one hand, and any exhibit thereto on the other hand, the terms of this Joint Stipulation of Settlement and Release shall control. 
 H.
This Settlement Agreement shall be governed by and interpreted according to the law of the State of Georgia, excluding its conflict of laws provisions. 
 I. Any action to enforce this Settlement Agreement shall be commenced and maintained only in this Court. 
 J. Whenever this Settlement Agreement requires or contemplates that one Party shall or may give notice to the other, notice shall be provided by e-mail, facsimile, and/or next-day (excluding Saturday and Sunday) express delivery
service as follows and shall be deemed effective (1) upon such e-mail or facsimile transmission or (2) delivery to the appropriate address(es) below: 
  

	 	1.	If to Defendants, then to: 

 Jeffrey W. Willis, Esq.

 Rogers & Hardin LLP 
 229 Peachtree Street, N.E. 
 2700 International Tower 
 Atlanta, GA 30303 
 Telephone:
(404) 522-4700 
 Facsimile: (404) 525-2224 
 Email: jwillis@rh-law.com 
  

 - 53 - 

	 	2.	If to Plaintiff, then to: 

 David F. Walbert, Esq.

 Parks, Chesin & Walbert, P.C. 
 26th Floor, 75 Fourteenth Street 
 Atlanta, GA 30309 
 Telephone: (404) 873-8000 
 Facsimile: (404) 873-8050 
 Email: dwalbert@pcwlawfirm.com 
 and

 Stephen J. Fearon, Jr., Esq. 
 Squitieri & Fearon, LLP 
 32 East 57th Street 
 12th Floor 
 New York, New York 10022 
 Telephone: (212) 421-6492 
 Facsimile: (212) 421-6553 
 Email:
stephen@sfclasslaw.com 
 K. All time periods set forth herein shall be computed in calendar days unless otherwise expressly provided.
In computing any period of time prescribed or allowed by this Settlement Agreement or by order of court, the day of the act, event, or default from which the designated period of time begins to run shall not 

  

 - 54 - 

 
be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a Fulton County, Georgia legal holiday, or, when
the act to be done is the filing of a paper in court, a day on which weather or other conditions have made the office of the clerk of the court inaccessible, in which event the period shall run until the end of the next day that is not one of the
aforementioned days. 
 L. The Parties reserve the right, subject to the Court’s approval, to make any reasonable extensions of
time that might be necessary to carry out any of the provisions of this Settlement Agreement. 
 M. All Parties agree that this
Settlement Agreement was drafted by Defendants’ Counsel and Class Counsel at arm’s length, and that no parole or other evidence may be offered to explain, construe, contradict, or clarify its terms, the intent of the Parties or their
counsel, or the circumstances under which the Settlement Agreement was made or executed; provided, that there shall be no presumption for or against any Party that drafted all or any portion of this Settlement Agreement. 
 N. This Settlement Agreement, offer of this Settlement Agreement, and compliance with this Settlement Agreement shall not constitute or be
construed as an admission by the Releasees, or any of them individually, of any wrongdoing or liability. Instead this Settlement Agreement is to be construed solely as a 

  

 - 55 - 

 
reflection of the Parties’ desire to facilitate a resolution of the claims in the Complaint and of the Released Claims. The Parties agree that no Party
was or is a “prevailing party” in this case. In no event shall the Settlement Agreement, any of its provisions, or any negotiations, statements, or court proceedings relating to its provisions in any way be construed as, offered as,
received as, used as or deemed to be evidence of any kind in this Action, any other action, or any judicial, administrative, regulatory, or other proceeding, except a proceeding to enforce this Settlement Agreement. 
 O. No opinion or advice concerning the tax consequences of the proposed settlement to individual Class Members is being given or will be given by
Defendants, Defendants’ Counsel, Plaintiff, Plaintiff’s Counsel, or the Administrator; nor is any representation or warranty in this regard made by virtue of this Settlement Agreement. If inquiry is made, the Administrator will direct
Class Members to consult their own tax advisors regarding the tax consequences of the proposed settlement and any tax reporting obligations they may have with respect thereto. Each Class Member’s tax obligations, and the determination thereof,
are the sole responsibility of the Class Member, and it is understood that the tax consequences may vary depending on the particular circumstances of each individual Class Member. 
  

 - 56 - 

 P. The Parties, their successors and assigns, and their attorneys agree to implement the terms of
this Settlement Agreement in good faith, and to use good faith in resolving any disputes that may arise in the implementation of the terms of this Settlement Agreement. The Parties, their successors and assigns, and their attorneys agree to
cooperate fully with one another in seeking Court approval of this Settlement Agreement and to use their best efforts to effect the prompt consummation of this Settlement Agreement and the proposed settlement. 
 Q. This Settlement Agreement may be signed in counterparts, each of which shall constitute a duplicate original. Execution by facsimile shall be
fully and legally binding on a Party, and the Party so executing shall promptly provide a fully executed counterpart to each of the other Parties and to counsel for the Parties. 
 R. All Releasees who are not parties to this Settlement Agreement are intended third-party beneficiaries entitled to enforce the terms of the
Release set forth herein. 
  

 - 57 - 

 AGREED TO AS OF THIS 9th DAY OF MARCH 2009 
  

	
	 David F. Walbert

	David F. Walbert
	 Parks, Chesin & Walbert, P.C.
 26th Floor, 75 Fourteenth Street
 Atlanta, GA 30309
  
 Stephen J. Fearon, Jr.
 Squitieri & Fearon, LLP
 32 East 57th Street
 12th
Floor
 New York, New York 10022

	
	ON BEHALF OF PLAINTIFF AND THE CLASS
	
	 /s/ Jeffrey W. Willis

	 Jeffrey W. Willis
 Rogers & Hardin
 229 Peachtree Street, N.E.
 2700 International Tower
 Atlanta, GA 30303

	
	ON BEHALF OF DEFENDANTS

  

 - 58 -Second Supplemental Indenture

 Exhibit 4.2 
 SECOND SUPPLEMENTAL INDENTURE 
 by and among 
 Ventas Realty, Limited Partnership, 
 Ventas Capital Corporation 
 and each of the Guarantors named herein 
 and

 U.S. Bank National Association 
 as Trustee 
 $200,000,000 
 6 1/2% Senior Notes due 2016 
  
  
 Dated as of April 13, 2009

 Supplement to Indenture dated as of September 19, 2006 (Senior Debt Securities) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I	  	
		
	CREATION OF THE SECURITIES	  	
			
	 Section 1.01
	  	Designation of the Series; Securities Guarantees	  	2
	 Section 1.02
	  	Form of Notes	  	2
	 Section 1.03
	  	No Limit on Amount of Notes	  	2
	 Section 1.04
	  	Ranking	  	2
	 Section 1.05
	  	Certificate of Authentication	  	3
	 Section 1.06
	  	No Sinking Fund	  	3
	 Section 1.07
	  	No Additional Amounts	  	3
	 Section 1.08
	  	Definitions	  	3
		
	ARTICLE II	  	
		
	REDEMPTION AND REPAYMENT	  	
			
	 Section 2.01
	  	Amendment to Article 3	  	16
		
	ARTICLE III	  	
		
	COVENANTS	  	
	 Section 3.01
	  	Amendments to Article 4	  	19
		
	ARTICLE IV	  	
		
	SUCCESSORS	  	
	 Section 4.01
	  	Amendments to Section 5.01	  	34
		
	ARTICLE V	  	
		
	DEFAULTS AND REMEDIES	  	
			
	 Section 5.01
	  	Amendments to Section 6.01	  	35
	 Section 5.02
	  	Construction of Sections 6.04 and 6.07	  	35

					
	ARTICLE VI	  	
		
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	  	
			
	 Section 6.01
	  	Applicability of Defeasance Provisions	  	35
	 Section 6.02
	  	Determinations Under Section 8.03	  	35
	 Section 6.03
	  	Determination Under Section 8.07	  	35
		
	ARTICLE VII	  	
		
	GUARANTEES	  	
			
	 Section 7.01
	  	Applicability of and Determinations Under Guarantee Provisions	  	35
	 Section 7.02
	  	Amendment to Article 10	  	36
		
	ARTICLE VIII	  	
		
	MISCELLANEOUS	  	
			
	 Section 8.01
	  	Determination Under Section 13.10	  	37
	 Section 8.02
	  	Application of Supplemental Indenture; Ratification	  	37
	 Section 8.03
	  	Benefits of Supplemental Indenture	  	37
	 Section 8.04
	  	Effective Date	  	38
	 Section 8.05
	  	Governing Law	  	38
	 Section 8.06
	  	Counterparts	  	38
			
	 SCHEDULE I
	  	Real Estate Revenues	  	
	 SCHEDULE II
	  	Guarantors	  	
			
	 EXHIBIT A
	  	Form of Note	  	
	 EXHIBIT B
	  	Form of Supplemental Indenture to be Delivered by Subsequent Guarantors	  	
	 EXHIBIT C
	  	Form of Notation of Securities Guarantee	  	

 THIS SECOND SUPPLEMENTAL INDENTURE, dated as of April 13, 2009 (the “Second Supplemental
Indenture”), is by and among Ventas Realty, Limited Partnership, a Delaware limited partnership (the “Partnership”), Ventas Capital Corporation, a Delaware corporation (“Ventas Capital”), the Guarantors (defined below) and
U.S. Bank National Association, as trustee (the “Trustee”), having a Corporate Trust Office at 425 Walnut ML CN WN 06 CT, Cincinnati, Ohio 45202, as Trustee under the Indenture (defined below). 
 WHEREAS, Ventas, Inc., a Delaware corporation, the Partnership, Ventas Capital, the Guarantors and the Trustee are parties to that certain indenture
dated as of September 19, 2006 (the “Base Indenture” and, as amended and supplemented from time to time, the “Indenture”), providing for the issuance by Ventas, Inc. or by the Partnership and Ventas Capital together from
time to time of their respective senior debt securities (the “Securities”); 
 WHEREAS, Sections 2.02 and 9.01 of the Base
Indenture provide, among other things, that Ventas, Inc., the Partnership, Ventas Capital, the Guarantors and the Trustee may, without the consent of the Holders of the Securities, enter into one or more indentures supplemental to the Base Indenture
to establish the form or terms of Securities of any series or to change or eliminate any of the provisions of the Base Indenture; provided that any such change or elimination shall become effective only when there is no Security Outstanding of any
series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provisions; 
 WHEREAS, the
Partnership and Ventas Capital, acting in their capacity as issuers under the Base Indenture (together with their respective successors, the “Issuers”), desire to issue a series of their Securities under the Base Indenture, and have duly
authorized the creation and issuance of such Securities and the execution and delivery of this Supplemental Indenture to modify the Base Indenture and to provide certain additional provisions in respect of such Securities as hereinafter described;

 WHEREAS, the Issuers desire to issue such Securities with the benefit of guarantees provided by Ventas, Inc. and the other Guarantors on
the terms set forth in the Base Indenture, as supplemented by this Supplemental Indenture; 
 WHEREAS, the Issuers, Ventas, Inc., the other
Guarantors and the Trustee deem it advisable to enter into this Supplemental Indenture for the purposes of establishing the terms of such Securities and guarantees and providing for the rights, obligations and duties of the Trustee with respect to
such Securities; 
 WHEREAS, concurrently with the execution hereof, the Issuers have delivered to the Trustee an Officers’ Certificate
and have caused their counsel to deliver to the Trustee an Opinion of Counsel or a reliance letter upon an Opinion of Counsel satisfying the requirements of Section 2.03 of the Base Indenture; and 
 WHEREAS, all conditions and requirements of the Base Indenture necessary to make this Supplemental Indenture a valid, binding and legal instrument in
accordance with its terms have been performed and fulfilled by the parties hereto, and the execution and delivery hereof have been in all respects duly authorized by the parties hereto. 

 NOW, THEREFORE, for and in consideration of the premises and agreements herein contained, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders of such Securities, as follows: 
 ARTICLE I 
 CREATION OF THE SECURITIES 
 Designation
of the Series; Securities Guarantees. 
 (a) The changes, modifications and
supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes (as defined below), which shall not apply to any other Securities that have been or may be issued
under the Base Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements. Pursuant to the terms hereof and Sections 2.01 and 2.02 of the Base Indenture, the
Issuers hereby create a series of Securities designated as the “6 1/2% Senior Notes due 2016” (the “Notes”),
which Notes shall be deemed “Securities” for all purposes under the Base Indenture. Except as otherwise provided in the Base Indenture, the Notes shall form their own series for voting purposes, and shall not be part of the same class or
series as any other Securities issued by the Issuers or by Ventas, Inc. 
 (b) Each of the Notes will be guaranteed by the Guarantors
in accordance with Article 10 of the Base Indenture and Article VII of this Supplemental Indenture. 
 Form of Notes. The Notes will
be issued in definitive form and the definitive form of the Notes shall be one or more Global Securities substantially in the form set forth in Exhibit A attached hereto, which is incorporated herein and made a part hereof. The Notes shall bear
interest, be payable and have such other terms as are stated in the form of definitive Note or in the Base Indenture, as supplemented by this Supplemental Indenture. The stated maturity of the principal of the Notes shall be June 1, 2016.

 No Limit on Amount of Notes. The Trustee shall authenticate and deliver on April 13, 2009, Notes for original issue in an
aggregate principal amount of up to $200,000,000. Notwithstanding the foregoing, the aggregate principal amount of the Notes shall be unlimited; provided that the terms of all Notes issued under this Supplemental Indenture (other than the date of
issuance) shall be the same. The Issuers may, upon the execution and delivery of this Supplemental Indenture or from time to time thereafter, execute and deliver the Notes to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Notes upon an Authentication Order and delivery of an Officers’ Certificate and Opinion of Counsel as contemplated by Section 2.03 of the Base Indenture, without further action by the Issuers. 
 Ranking. The Notes will be the Issuers’ unsecured and unsubordinated obligations and rank equal in right of payment with all of the
Issuers’ existing and future unsecured and unsubordinated indebtedness. 
  

 A-2 

 Certificate of Authentication. The Trustee’s certificate of authentication to be included on
the Notes shall be substantially as provided in the form of Note attached hereto as Exhibit A. 
 No Sinking Fund. No sinking fund
will be provided with respect to the Notes (notwithstanding any provisions of the Base Indenture with respect to sinking fund obligations). 
 No Additional Amounts. No Additional Amounts will be payable with respect to the Notes (notwithstanding any provisions of the Base Indenture with respect to Additional Amount obligations). 
 Definitions. 
 (c) Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings assigned thereto in the Base Indenture. 
 (d) Solely for
purposes of this Supplemental Indenture and the Notes, the following definitions in Section 1.01 of the Base Indenture are hereby amended in their entirety to read as follows: 
 “Business Day” means any day other than a Saturday or Sunday or a day on which banking institutions in The City of New York are required or
authorized to close. 
 “Default” means, with respect to the Indenture and the Notes, any event that is, or with the passage of
time or giving of notice would be, an Event of Default. 
 “Disqualified Stock” means, with respect to any entity, any Capital
Stock of such entity which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (other than pursuant to a
change of control provision not materially more favorable to the holder thereof than as set forth in Section 4.15 hereof), (1) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital
Stock which is redeemable solely in exchange for Capital Stock which is not Disqualified Stock or for Subordinated Debt), (2) is convertible into or exchangeable or exercisable for Debt, other than Subordinated Debt or Disqualified Stock, or
(3) is redeemable at the option of the holder thereof, in whole or in part (other than Capital Stock which is redeemable solely in exchange for Capital Stock which is not Disqualified Stock or for Subordinated Debt), in each case on or prior to
the stated maturity of the Notes. 
 “Interest Payment Date” has the meaning set forth in the Indenture and the Notes. 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, limited liability company or government or other entity. 
 “Significant Subsidiary” means each Restricted Subsidiary
that is a significant subsidiary, if any, of Ventas, Inc. as defined in Regulation S-X under the Securities Act. 
  

 A-3 

 “Unrestricted Subsidiary” means any Subsidiary of Ventas, Inc. or any successor to any of them,
other than the Partnership and Ventas Capital, that is designated by the Board of Directors of Ventas, Inc. as an Unrestricted Subsidiary pursuant to a board resolution, but only to the extent that such Subsidiary: 
 (1) has no Debt other than Non-Recourse Debt; 
 (2) is not party to any agreement, contract, arrangement or understanding with Ventas, Inc. or any of its Restricted Subsidiaries unless
the terms of any such agreement, contract, arrangement or understanding are no less favorable to Ventas, Inc. or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of Ventas, Inc.;

 (3) is a Person with respect to which neither Ventas, Inc. nor any of its Restricted Subsidiaries has any direct or
indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results; 
 (4) has not guaranteed or otherwise directly or indirectly provided credit support for any Debt of Ventas, Inc. or any of its Restricted
Subsidiaries, other than pursuant to Standard Securitization Undertakings; and 
 (5) has at least one director on its Board
of Directors that is not a director or executive officer of Ventas, Inc. or any of its Restricted Subsidiaries and has at least one executive officer that is not a director or executive officer of Ventas, Inc. or any of its Restricted Subsidiaries.

 Any designation of a Subsidiary of Ventas, Inc. as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee a certified copy
of the board resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions and was permitted by Section 4.09 hereof. If, at any time, any Unrestricted
Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of the Indenture and any Debt of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of Ventas, Inc. as of such date and, if such Debt is not permitted to be incurred as of such date by Section 4.11 hereof Ventas, Inc. will be in default of such Section. 
 (e) Solely for purposes of this Supplemental Indenture and the Notes, the following terms shall have the indicated meanings: 
 “Acquired Debt” means Debt of a Person (1) existing at the time such Person becomes a Subsidiary or (2) assumed in connection with
the acquisition of assets from such Person, in each case, other than Debt incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition. Acquired Debt is deemed to be incurred on the date of the related
acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary. 
  

 A-4 

 “Adjusted Book Value” means, as of any date (a) with respect to any (i) Real Estate
Asset that was owned as of April 17, 2002 and continued to be owned as of such date of determination by Ventas, Inc. or any of its Restricted Subsidiaries and (ii) Reacquired Qualified CMBS Real Estate Assets, in each case, (1) the
Real Estate Revenues specified for such Real Estate Asset on Schedule I attached to the Second Supplemental Indenture, divided by 0.0925, plus (2) any annualized incremental rental revenue generated by such Real Estate Asset as a result of,
arising out of or in connection with the Kindred Reset Right of the Partnership with respect to such Real Estate Asset (whether by agreement or exercise of such right or otherwise), divided by 0.0925, (b) with respect to any Real Estate Assets
acquired after April 17, 2002 that are owned by Ventas, Inc. or any of its Restricted Subsidiaries as of such date of determination (other than Reacquired Qualified CMBS Real Estate Assets), the cost (original cost plus capital improvements,
before depreciation and amortization) of such Real Estate Asset and (c) with respect to all other assets as of any date of determination, the book value of such asset as of such date, in each case on a consolidated basis determined in
accordance with GAAP. For the purpose of clause (2) of this definition, “annualized incremental rental revenue” in respect of a Real Estate Asset shall mean the increase in daily rental revenue generated by such Real Estate Asset as a
result of, arising out of or in connection with the Kindred Reset Right (whether by agreement or exercise of such right or otherwise) over the daily rental revenue generated by such Real Estate Asset immediately prior to the effective date of such
increase, annualized by multiplying such daily increase by 365. 
 “Annual Debt Service” as of any date means the amount which was
expensed in the four consecutive fiscal quarters ending on the most recent Measurement Date for interest on Debt of Ventas, Inc. and its Restricted Subsidiaries excluding (1) amortization of debt discount and deferred financing cost,
(2) all gains and losses associated with the unwinding or break-funding of interest rate swap agreements, (3) the impact of that certain interest rate cap agreement between the Partnership and Bank of America, N.A., dated December 11,
2001, (4) the write-off of unamortized deferred financing fees, (5) prepayment fees, premiums and penalties and (6) non-cash swap ineffectiveness charges. 
 “Asset Sale” means: 
 (1) the sale, lease, conveyance or other disposition by
Ventas, Inc. or any of its Restricted Subsidiaries of any assets, other than leases of Real Estates Assets and sales of products and services, in each case, in the ordinary course of business consistent with past practices; provided,
however that the sale, conveyance or other disposition of all or substantially all of the assets of Ventas, Inc. or any of its Restricted Subsidiaries taken as a whole will be governed by Section 4.15 and/or Article 5 and not by
Section 4.13; and 
 (2) the issuance of Equity Interests by any of Ventas, Inc.’s Restricted Subsidiaries or the
sale of Equity Interests in any of Ventas, Inc.’s Restricted Subsidiaries. 
 Notwithstanding the preceding, the following items will
not be deemed to be Asset Sales: 
 (1) any single transaction or series of related transactions that involves assets having a
Fair Market Value of less than $10.0 million; 
  

 A-5 

 (2) a transfer of assets between or among Ventas, Inc. or any of its Restricted
Subsidiaries (other than any Permitted Joint Ventures); 
 (3) an issuance of Equity Interests by a Restricted Subsidiary to
Ventas, Inc. or to another Restricted Subsidiary; 
 (4) the sale, lease or other disposition of equipment, inventory,
accounts receivable or other assets in the ordinary course of business; 
 (5) the sale or other disposition of cash or Cash
Equivalents; 
 (6) a Restricted Payment that is permitted by Section 4.09 hereof or any Permitted Investment;

 (7) any Asset Swap; 
 (8) any issuance of Equity Interests (other than Disqualified Stock) by the Partnership in order to acquire assets that are used or useful in a Permitted Business; and 
 (9) any sale, transfer, conveyance or other disposition of assets of the type specified in the definition of “Qualified CMBS
Transaction” to an Unrestricted Subsidiary for the Fair Market Value thereof, including cash received at the time of such sale, transfer, conveyance or disposition in an amount at least equal to 65% of the Adjusted Book Value thereof as
determined in accordance with GAAP. 
 “Asset Swap” means an exchange by Ventas, Inc. or any of its Restricted Subsidiaries of
property or assets for property or assets of another Person; provided, however, that (i) Ventas, Inc. or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such exchange at least equal
to the Fair Market Value of the assets or other property sold, issued or otherwise disposed of (as evidenced by a resolution of Ventas, Inc.’s or such Restricted Subsidiaries’ Board of Directors set forth in an Officers’ Certificate
delivered to the Trustee), and (ii) at least 75% of the consideration for such exchange constitutes assets or other property of a kind usable by Ventas, Inc. or any of its Restricted Subsidiaries in a Permitted Business; provided,
however that any consideration not constituting assets or property of a kind usable by Ventas, Inc. or any of its Restricted Subsidiaries in a Permitted Business received by Ventas, Inc. or any of its Restricted Subsidiaries in connection
with any exchange permitted to be consummated pursuant to Section 4.13 hereof shall constitute Net Proceeds subject to the provisions of Section 4.13 hereof. 
 “Cash Equivalents” means demand deposits, certificates of deposit or repurchase agreements with banks or financial institutions, marketable obligations of the United States of America or any of its agencies
or instrumentalities, or any commercial paper or other obligation rated, at time of purchase, “P-2” or better by Moody’s or “A-2” or better by S&P and repurchase obligations with a term of not more than 10 days for
underlying securities supported by the full faith and credit of the United States of America, and money market funds substantially all of whose investments constitute Cash Equivalents. 
  

 A-6 

 “Change of Control” means (i) such time as any “person” or
“group” (as such terms are defined in Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of the Voting
Stock of Ventas, Inc. on a fully diluted basis; provided, however, that a person shall not be deemed to be the beneficial owner of securities subject to a merger, stock purchase, subscription or other agreement, if the acquisition of
such securities is subject to conditions outside of such person’s control, until such acquisition actually occurs; (ii) the first day on which the Partnership ceases to be a Restricted Subsidiary of Ventas, Inc. or
(iii) the first day on which the Partnership fails to own 100% of the issued and outstanding Equity Interests of Ventas Capital. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Consolidated Income Available for Debt Service”
for any period means Earnings from Operations of Ventas, Inc. and its Restricted Subsidiaries plus amounts which have been deducted, and minus amounts which have been added, for the following (without duplication): (1) total interest expense of
Ventas, Inc. and its Restricted Subsidiaries for such period, including interest or distributions on Debt of Ventas, Inc. and its Restricted Subsidiaries, (2) provision for taxes based on income or profits or the Tax Amount of Ventas, Inc. and
its Restricted Subsidiaries for such period, to the extent that such provision for taxes or Tax Amount was included in computing such Consolidated Income Available for Debt Service, (3) amortization of debt discount and deferred financing
costs, (4) provisions for gains and losses on properties, (5) depreciation and amortization (excluding amortization of prepaid cash expenses that were paid in a prior period), (6) the effect of any non-cash charge resulting from a
change in accounting principles in determining Earnings from Operations for such period, (7) amortization of deferred charges, and (8) the aggregate amount of all non-cash expenses (excluding any such non-cash expense to the extent that it
represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period), determined on a consolidated basis, to the extent such items increased or decreased Earnings from
Operations for such period. 
 “Consolidated Net Tangible Assets” means, as of any date, all tangible assets of Ventas, Inc. and
its Restricted Subsidiaries on a consolidated basis determined in accordance with GAAP and classified as such on the consolidated balance sheet of Ventas, Inc. and its Restricted Subsidiaries. 
 “Credit Agreement” means that certain Third Amended and Restated Credit, Security and Guaranty Agreement, dated as of September 8, 2004,
by and among the Partnership, Ventas, Inc., Bank of America, N.A., as Administrative Agent and Issuing Bank, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC, as Co-Syndication Agents,
and Calyon New York Branch, JP Morgan Chase Bank and Citicorp North America, Inc., as Co-Documentation Agents, and the lenders party thereto providing for revolving credit borrowings, including any related notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and in each case as amended, modified, renewed, extended, increased, refunded, replaced or refinanced from time to time (whether or not with the original agents or lenders and whether or
not contemplated under the original agreement relating thereto). 
  

 A-7 

 “Credit Facilities” means, one or more debt facilities (including, without limitation, the
Credit Agreement) or commercial paper facilities, in each case with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special
purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, extended, increased, refunded, replaced or refinanced in whole or in part from time to time
(whether or not with the original agents or lenders and whether or not contemplated under the original agreement relating thereto). 
 “Earnings from Operations” for any period means the consolidated net income of Ventas, Inc. and its Restricted Subsidiaries without reduction for any minority interests, excluding gains and losses on sales of investments,
extraordinary items (including, in any event, losses on extinguishment of debt), distributions on equity securities, property valuation losses, and the net income of any Person, other than a Restricted Subsidiary of Ventas, Inc. (except to the
extent of cash dividends or distributions paid to Ventas, Inc. or any Restricted Subsidiary) as reflected in the financial statements of Ventas, Inc. and its Restricted Subsidiaries for such period, on a consolidated basis determined in accordance
with GAAP, and excluding the cumulative effect of changes in accounting principles. 
 “Equity Offering” means any underwritten
public offering of Capital Stock of Ventas, Inc. (other than the Equity Offering that closed on the date of this Second Supplemental Indenture), the proceeds of which, in an amount equal to or exceeding the amount of any Equity Claw-back Redemption,
are contributed to the Partnership as a capital contribution. 
 “Excluded Joint Venture” means any Permitted Joint Venture created
or acquired after April 17, 2002; provided, however, that the only Investments made by Ventas, Inc. and its Restricted Subsidiaries in such Permitted Joint Venture are made pursuant to clause (10) or (11) of the
definition of Permitted Investments or are Restricted Payments permitted by Section 4.09 hereof. 
 “Existing Debt” means Debt
of Ventas, Inc. and its Restricted Subsidiaries (other than Debt under the Credit Agreement) in existence on December 9, 2005, until such amounts are repaid. 
 “Funds from Operations” for any period means Earnings from Operations for such period plus amounts that have been deducted, and minus amounts that have been added, for the following (without duplication):
(1) provision for taxes of Ventas, Inc. and its Restricted Subsidiaries based on income, (2) amortization of debt discount and deferred financing costs, (3) provisions for gains and losses on properties and property depreciation and
amortization, (4) the effect of any non-cash charge resulting from a change in accounting principles in determining Earnings from Operations for such period, (5) amortization of deferred charges, (6) gains (and losses) associated with
the termination, in whole or in part, of any interest rate swap agreement, (7) the write-off of unamortized deferred financing fees and (8) prepayment fees, premiums and penalties. 
  

 A-8 

 “Guarantors” means each of: 
 (1) Ventas, Inc.; and 
 (2) any other Restricted Subsidiary of Ventas, Inc. (other than an Excluded Joint Venture) that executes a Securities Guarantee of the Notes in accordance with the provisions of the Indenture; 
 and their respective successors and assigns; provided, however, that any Person constituting a Guarantor as described above shall cease to constitute a
Guarantor when its Guarantee of the Notes is released in accordance with the terms of the Indenture. 
 “Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person under: 
 (1) interest rate swap agreements,
interest rate cap agreements and interest rate collar agreements; and 
 (2) other agreements or arrangements designed to
protect such Person against fluctuations in interest rates or foreign exchange rates. 
 “Investments” means, with respect to any
Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations), advances or capital contributions (excluding commission, travel and similar advances
to directors, officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Debt, Equity Interests or other securities, together with all items that are or would be classified as investments on
a balance sheet prepared in accordance with GAAP. If Ventas, Inc. or any Restricted Subsidiary sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of Ventas, Inc. or such Restricted Subsidiary such
that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of Ventas, Inc., Ventas, Inc. or such Restricted Subsidiary will be deemed to have made an Investment on the date of any such sale or
disposition equal to the Fair Market Value of the Equity Interests of such Subsidiary not sold or disposed. The acquisition by Ventas, Inc. or any of its Restricted Subsidiaries of a Person that holds an Investment in a third Person will be deemed
to be an Investment by Ventas, Inc. or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the Investment held by the acquired Person in such third Person. “Investments” shall exclude extensions
of trade credit on commercially reasonable terms in accordance with normal trade practices. 
 “Issuers” has the meaning stated in
the third recital of the Second Supplemental Indenture. 
 “Issue Date” means April 13, 2009. 
 “Kindred Reset Right” means, with respect to any Real Estate Asset, the one-time right of the Partnership to reset the rents with respect to
such Real Estate Asset under any of the four amended and restated master lease agreements dated April 20, 2001 between the Partnership and Kindred Healthcare, Inc., as amended from time to time, exercisable by notice given on or after
January 20, 2006 and on or before July 19, 2007, to a then fair market rental rate. 
  

 A-9 

 “Make-Whole Amount” means, in connection with any optional redemption of the Notes, the excess,
if any, of: 
 (1) the aggregate present value as of the date of such redemption of each dollar of principal being redeemed or
paid and the amount of interest (exclusive of interest accrued to the date of redemption or accelerated payment) that would have been payable in respect of each such dollar if such redemption or accelerated payment had not been made, determined by
discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate (determined on the third Business Day preceding the date a notice of redemption is given or declaration of acceleration is made) from the respective dates on
which such principal and interest would have been payable if such redemption or payment had not been made, over 
 (2) the
aggregate principal amount of the Notes being redeemed or paid. 
 “Moody’s” means Moody’s Investors Service, Inc. or any
successor to the rating agency business thereof. 
 “Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received
by Ventas, Inc. or any of its Restricted Subsidiaries in respect of any Asset Sale or Qualified CMBS Transaction (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset
Sale or Qualified CMBS Transaction), net of the (i) amount required to be distributed to the stockholders by Ventas, Inc. as a result of such Asset Sale or Qualified CMBS Transaction in order to maintain its status as REIT under the Code and
(ii) direct costs relating to such Asset Sale or Qualified CMBS Transaction, including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale
or Qualified CMBS Transaction, taxes paid or payable as a result of the Asset Sale or Qualified CMBS Transaction and, without duplication, all distributions to equity holders in respect of taxes, in each case, after taking into account any available
tax credits or deductions and any tax sharing arrangements, amounts required to be applied to the repayment of Debt, other than Debt under a Credit Facility and Debt that is pari passu with the Notes containing provisions similar to those set
forth in the Second Supplemental Indenture, and appropriate amounts to be provided by Ventas, Inc. or any Restricted Subsidiary, as the case may be, as a reserve required in accordance with GAAP against any liabilities associated with such Asset
Sale or Qualified CMBS Transaction and retained by Ventas, Inc. or any Restricted Subsidiary, as the case may be, after such Asset Sale or Qualified CMBS Transaction, including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale or Qualified CMBS Transaction; provided, however, that any amounts remaining after
adjustments, revaluations or liquidations of such reserves shall constitute Net Proceeds. 
 “Notes” has the meaning stated in
Section 1.01 of the Second Supplemental Indenture. 
  

 A-10 

 “Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any Debt. 
 “Permitted Business” means any business
activity (including Permitted Mortgage Investments) related to properties constituting or used as skilled nursing home centers, hospitals, personal healthcare facilities, assisted living facilities, independent living facilities, medical office
buildings, continuum of care facilities, life care facilities, sheltered care facilities, seniors housing, senior living facilities or other properties customarily constituting assets of a REIT, plus any other business in which Ventas, Inc.
and its Restricted Subsidiaries were engaged on December 9, 2005 and such business activities as are complementary, incidental, ancillary or related to, or are reasonable extensions of, the foregoing. 
 “Permitted Debt” means: 
 (1) Permitted Refinancing Debt; 
 (2) Debt under Credit Facilities in an aggregate principal amount (including all
Permitted Refinancing Debt incurred with respect thereto) not to exceed at any one time outstanding an amount equal to $450.0 million less the aggregate amount of Net Proceeds of Asset Sales that have been applied since December 9, 2005
to repay Debt under Credit Facilities or Permitted Refinancing Debt incurred with respect thereto pursuant to Section 4.13(b)(1) hereof. Debt outstanding under Credit Facilities on December 9, 2005 will be deemed to have been incurred
pursuant to this clause (2); and 
 (3) other Debt in an aggregate principal amount not to exceed $100.0 million at any time
outstanding. 
 “Permitted Investments” means: 
 (1) any Investment in Ventas, Inc. or any of its Restricted Subsidiaries; 
 (2) any Investment in Permitted Mortgage Investments in the ordinary course of business or in Cash Equivalents; 
 (3) any Investment by Ventas, Inc. or any of its Restricted Subsidiaries in a Person, if as a result of such Investment: 
 (a) such Person becomes a Subsidiary of Ventas, Inc. or such Restricted Subsidiary and a Guarantor; or 
 (b) such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is
liquidated into, Ventas, Inc. or any of its Restricted Subsidiaries that is a Guarantor; 
 (4) any Investment made as a
result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.13 hereof; 
  

 A-11 

 (5) any acquisition of assets to the extent made in exchange for the issuance of Equity
Interests (other than Disqualified Stock) of Ventas, Inc. or the Partnership; 
 (6) any Investments received in compromise of
obligations of such Persons incurred in the ordinary course of trade creditors or customers that were incurred in the ordinary course of business, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of any trade creditor or customer; 
 (7) Hedging Obligations; 
 (8) intercompany Debt and Guarantees, in either case, to the extent permitted by Section 4.11 hereof; 
 (9) any Investment by Ventas, Inc. or any of its Restricted Subsidiaries acquired as a result of a transfer of assets to an Unrestricted
Subsidiary in connection with a Qualified CMBS Transaction permitted by clause (9) of the definition of “Asset Sale”; 
 (10) any Investment in Permitted Joint Ventures when taken together with all other Investments made pursuant to this clause (10) since December 9, 2005 does not exceed the greater of (i) $100.0 million or (ii) 10% of
Ventas, Inc.’s Consolidated Net Tangible Assets; and 
 (11) other Investments in any Person having an aggregate Fair
Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (11) since December 9, 2005 does not
exceed $200.0 million. 
 “Permitted Joint Venture” means any entity owned 50% or more by Ventas, Inc. and/or any of its Restricted
Subsidiaries, if such entity (a) is engaged in a Permitted Business, (b) is designated as a Restricted Subsidiary (if more than 50% owned) and (c) Ventas has the right to appoint at least half of the Board of Directors or similar
governing body of such entity. 
 “Permitted Mortgage Investment” means any investment in a secured note, mortgage, deed of trust,
collateralized mortgage obligations, commercial mortgage-backed securities, other secured debt securities, secured debt derivative or other debt instruments, so long as such investment relates directly or indirectly to real property that constitutes
or is used as a skilled nursing home center, hospital, personal healthcare facility, assisted living facility, independent living facility, medical office building, continuum of care facility, life care facility, sheltered care facility, seniors
housing, senior living facility or other property customarily constituting an asset of a real estate investment trust specializing in healthcare or seniors housing property. 
 “Permitted Refinancing Debt” means any Debt of Ventas, Inc. or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds
of which are used to extend, refinance, renew, replace, defease or refund other Debt of Ventas, Inc. or any of its Restricted Subsidiaries (other than intercompany Debt); provided, however, that: 
 (1) the principal amount (or accreted value, if applicable) of such Permitted Refinancing Debt does not exceed the principal amount (or
accreted value, if applicable) 

  

 A-12 

 
of the Debt extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Debt and the amount of all expenses and premiums
incurred in connection therewith); 
 (2) such Permitted Refinancing Debt has a final maturity date later than the final
maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Debt being extended, refinanced, renewed, replaced, defeased or refunded; 
 (3) if the Debt being extended, refinanced, renewed, replaced, defeased or refunded is subordinated in right of payment to the Notes, such
Permitted Refinancing Debt has a final maturity date later than the final maturity date of, and is subordinated in right of payment to, the Notes on terms at least as favorable to the holders of Notes as those contained in the documentation
governing the Debt being extended, refinanced, renewed, replaced, defeased or refunded; and 
 (4) such Debt is incurred
either by Ventas, Inc. or by the Restricted Subsidiary who is the obligor on the Debt being extended, refinanced, renewed, replaced, defeased or refunded. 
 “Reacquired Qualified CMBS Real Estate Assets” means, as of any date of determination, Real Estate Assets that were owned by Ventas, Inc. or any of its Subsidiaries on or prior to April 17, 2002 and
that are (i) reacquired by Ventas, Inc. or any of its Restricted Subsidiaries from an Unrestricted Subsidiary in connection with an unwinding of a Qualified CMBS Transaction and (ii) owned by Ventas, Inc. or any Restricted Subsidiary as of
such date of determination. 
 “Real Estate Revenues” means, with respect to (i) any Real Estate Asset owned as of
April 17, 2002 and which continues to be owned as of the relevant date of determination by Ventas, Inc. or any of its Restricted Subsidiaries and (ii) Reacquired Qualified CMBS Real Estate Assets, in each case, the rental revenues
generated by such Real Estate Asset during the quarter ending September 30, 2005, annualized by multiplying such revenues by four, all as set forth on Schedule I attached hereto. 
 “Reinvestment Rate” means 0.50% plus the arithmetic mean of the yields under the respective heading Week Ending published in the most recent
Statistical Release under Treasury Constant Maturities for the maturity (rounded to the nearest month) corresponding to the remaining life to maturity, as of the date of the principal being redeemed or paid. If no maturity exactly corresponds to
such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from such yields on
a straight-line basis, rounding in each of such relevant periods to the nearest month. For the purpose of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount
shall be used. 
 “Replacement Assets” means properties or assets (other than current assets) that are used or useful in a
Permitted Business. 
  

 A-13 

 “Restricted Investment” means an Investment other than a Permitted Investment. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or any successor to the rating
agency business thereof. 
 “Second Supplemental Indenture” has the meaning stated in the preamble to the Second Supplemental
Indenture. 
 “Secured Debt” means, for any Person, Debt secured by a mortgage, lien, charge, pledge or security interest or other
encumbrance on the property of such Person or any of its Restricted Subsidiaries. 
 “Statistical Release” means that statistical
release designated H.15(519) or any successor publication that is published weekly by the Federal Reserve System and that establishes annual yields on actively traded United States government securities adjusted to constant maturities, or, if such
statistical release is not published at the time of any determination under the Indenture, then such other reasonably comparable index the Issuers designate. 
 “Subordinated Debt” means Debt which by the terms of such Debt is subordinated in right of payment to the principal of and interest and premium, if any, on the Notes or any Guarantee thereof. 
 “Tax Amount” means, with respect to any Person for any period, the combined federal, state and local income taxes that would be paid by such
Person if it were a Delaware corporation filing separate tax returns with respect to its Taxable Income for such Period; provided, however, that in determining the Tax Amount, the effect thereon of any net operating loss carryforwards
or other carryforwards or tax attributes, such as alternative minimum tax carryforwards, that would have arisen if such Person were a Delaware corporation shall be taken into account. Notwithstanding anything to the contrary, Tax Amount shall not
include taxes resulting from such Person’s reorganization as or change in the status to a corporation. 
 “Taxable Income”
means, with respect to any Person for any period, the taxable income or loss of such Person for such period for federal income tax purposes; provided, however that (i) all items of income, gain, loss or deduction required to be
stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss, (ii) any basis adjustment made in connection with an election under Section 754 of the Code shall be disregarded and
(iii) such taxable income shall be increased or such taxable loss shall be decreased by the amount of any interest expense incurred by such Person that is not treated as deductible for federal income tax purposes by a partner or member of such
Person. 
 “10% Stockholder” means any Person who beneficially owns 10% or more of the total voting power of the Voting Stock of
Ventas, Inc. 
 “Total Assets” means, for any Person as of any date, the sum of (a) in the case of each of (i) Real
Estate Assets that were owned as of April 17, 2002 and that continue to be owned as of such date of determination and (ii) Reacquired Qualified CMBS Real Estate Assets, (1) the Real Estate Revenues specified for such Real Estate
Assets on Schedule I attached to the Second Supplemental Indenture, divided by 0.0925, plus (2) any annualized incremental rental 

  

 A-14 

 
revenue generated by such Real Estate Assets as a result of, arising out of or in connection with the Kindred Reset Right of the Partnership with respect to
such Real Estate Assets (whether by agreement or exercise of such right or otherwise), divided by 0.0925, (b) the cost (original cost plus capital improvements before depreciation and amortization) of all Real Estate Assets acquired after
April 17, 2002 that are owned by Ventas, Inc. or any Restricted Subsidiaries as of such date of determination (other than Reacquired Qualified CMBS Real Estate Assets) and (c) the book value of all assets (excluding Real Estate Assets and
intangibles) of such Person and its Restricted Subsidiaries as of such date of determination on a consolidated basis determined in accordance with GAAP. For the purpose of clause (2) of this definition, “annualized incremental rental
revenue” in respect of a Real Estate Asset shall mean the increase in daily rental revenue generated by such Real Estate Asset as a result of, arising out of or in connection with the Kindred Reset Right (whether by agreement or exercise of
such right or otherwise) over the daily rental revenue generated by such Real Estate Asset immediately prior to the effective date of such increase, annualized by multiplying such daily increase by 365. 
 “Total Unencumbered Assets” means, for any Person as of any date, the Total Assets of such Person and its Restricted Subsidiaries as of such
date, that do not secure any portion of Secured Debt, on a consolidated basis determined in accordance with GAAP. 
 “Unsecured
Debt” means, for any Person, any Debt of such Person or its Restricted Subsidiaries which is not Secured Debt. 
 “Weighted Average
Life to Maturity” means, when applied to any Debt at any date, the number of years obtained by dividing: 
 (1) the sum
of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Debt, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 
 (2) the then outstanding principal amount of such Debt. 
 Solely for purposes of this Supplemental Indenture and the Notes, the
terms in the following table shall have the meanings in the respective Section of the Indenture in which they appear: 
  

			
	 Term
	  	 Defined in
Section

	 “Adjusted Total Assets”
	  	4.11
	 “Affiliate Transaction”
	  	4.14
	 “Asset Sale Offer”
	  	3.11
	 “Change of Control Offer”
	  	4.15
	 “Change of Control Payment”
	  	4.15
	 “Change of Control Payment Date”
	  	4.15
	 “Equity Claw-back Redemption”
	  	3.09
	 “Excess Proceeds”
	  	4.13
	 “Investment Grade Rating”
	  	4.20

  

 A-15 

			
	 “Measurement Date”
	  	4.11
	 “Offer Amount”
	  	3.11
	 “Offer Period”
	  	3.11
	 “Purchase Date”
	  	3.11
	 “Qualified CMBS Transaction Offer”
	  	3.11
	 “Restricted Payments”
	  	4.09

 ARTICLE II 
 REDEMPTION AND REPAYMENT 
 Amendment to Article 3. Pursuant to Sections 2.02(7) and 2.02(8) of the
Base Indenture, Article 3 of the Base Indenture is hereby amended with respect to the Notes by adding to the end the following new Sections 3.09 through 3.11, in each case to read as follows: 
 “Section 3.09. Optional Redemption. 
 (a) The Issuers may redeem the Notes at any time prior to June 1, 2011, in whole or from time to time in part, at a redemption price equal to the sum of (1) the principal amount of the Notes being redeemed,
(2) accrued and unpaid interest thereon to the redemption date and (3) the Make-Whole Amount, if any (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).

 The Issuers may also redeem the Notes at any time on or after June 1, 2011, in whole or from time to time in part, at
the redemption prices (expressed as percentages of the principal amount thereof) set forth below, plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of holders of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date), if redeemed during the 12-month period beginning on June 1 of each of the years indicated below: 
  

				
	 Year
	  	Percentage	 
	 2011
	  	103.250	%
	 2012
	  	102.167	%
	 2013
	  	101.083	%
	 2014 and thereafter
	  	100.000	%

 (b) Notwithstanding the provisions of clause (a) of this Section 3.09,
at any time prior to June 1, 2009, the Issuers may redeem, on any one or more occasions (each, an “Equity Claw-back Redemption”), with all or a portion of the net cash proceeds of one or more Equity Offerings (within 60 days of the
consummation of any such Equity Offering), up to 35% of the aggregate principal amount of the Notes originally issued under the Second Supplemental Indenture at a redemption price (expressed as a percentage of the aggregate principal amount of Notes
so redeemed) equal to 106.500%, plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date),
provided, however, that at least 65% of the aggregate principal amount of the Notes originally issued under the Second Supplemental Indenture must remain outstanding immediately after the occurrence of each such redemption. 

 

 A-16 

 (c) Any redemption pursuant to this Section 3.09 shall be made pursuant to the
provisions of Sections 3.01 through 3.07 of the Indenture. 
 Section 3.10. Mandatory Redemption. The Issuers are
not required to make mandatory redemption payments with respect to the Notes. 
 Section 3.11. Offer to Purchase by
Application of Excess Proceeds. In the event that, pursuant to Section 4.13, the Issuers are required to commence an offer to all Holders to purchase Notes (an “Asset Sale Offer” or “Qualified CMBS Transaction Offer,” as
the case may be), they will follow the procedures specified below. 
 The Asset Sale Offer or Qualified CMBS Transaction
Offer, as the case may be, shall be made to all Holders and all holders of other Debt that is pari passu with the Notes containing provisions similar to those set forth in Section 4.13 of the Indenture (including, without limitation, the
holders of notes outstanding under the Issuers’ existing indentures) with respect to offers to purchase or redeem with the proceeds of sales of assets or in connection with securitizations. The Asset Sale Offer or Qualified CMBS Transaction
Offer, as the case may be, will remain open for a period of at least 20 Business Days following its commencement and not more than 30 Business Days, except to the extent that a longer period is required by applicable law (the “Offer
Period”). No later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Issuers will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari
passu Debt (on a pro rata basis, if applicable) or, if less than the Offer Amount has been tendered, all Notes and other Debt tendered in response to the Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be. Payment for any
Notes so purchased will be made in the same manner as interest payments are made. If the Purchase Date is on or after a Record Date and on or before the related Interest Payment Date, any accrued and unpaid interest, will be paid to the Person in
whose name a Note is registered at the close of business on such Record Date, and no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale Offer or the Qualified CMBS Transaction Offer, as the case may be.

 Upon the commencement of an Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be, the Issuers will
send, by first class mail, a notice to the Trustee and each of the Holders, with a copy to the Trustee. 
 The notice will
contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be. The notice, which will govern the terms of the Asset Sale Offer or
Qualified CMBS Transaction Offer, as the case may be, will state: 
 (1) that the Asset Sale Offer or Qualified CMBS
Transaction Offer, as the case may be, is being made pursuant to this Section 3.11 and Section 4.13 of the Indenture and the length of time such offer will remain open; 
  

 A-17 

 (2) the Offer Amount, the purchase price and the Purchase Date; 
 (3) that any Note not tendered or accepted for payment will continue to accrue interest; 
 (4) that, unless the Issuers default in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer or Qualified
CMBS Transaction Offer, as the case may be, will cease to accrue interest after the Purchase Date; 
 (5) that Holders
electing to have a Note purchased pursuant to an Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be, may elect to have Notes purchased in integral multiples of $1,000 only; 
 (6) that Holders electing to have a Note purchased pursuant to any Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may
be, will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the Issuers, a Depositary, if appointed by the Issuers, or
a Paying Agent at the address specified in the notice at least three days before the Purchase Date; 
 (7) that Holders will
be entitled to withdraw their election if the Issuers, the Depositary or the Paying Agent, as the case may be, receives, not later than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing its election to have such Note purchased; 
 (8) that, if the aggregate principal amount of Notes and other pari passu Debt surrendered by Holders exceeds the Offer Amount, the
Issuers will select the Notes and other pari passu Debt to be purchased on a pro rata basis based on the principal amount of Notes and such other pari passu Debt surrendered (with such adjustments as may be deemed appropriate by the
Issuers so that only Notes in denominations of $1,000, or integral multiples thereof, will be purchased); and 
 (9) that
Holders whose Notes are purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by bookentry transfer). 
 On or before the Purchase Date, the Issuers will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be, or if less than the Offer Amount has been tendered, all Notes tendered, and will deliver to the Trustee
an Officers’ Certificate stating that such Notes or portions thereof were accepted for payment by the Issuers in accordance with the terms of this Section 3.11. The Issuers, the Depositary or the Paying Agent, as the case may be, will
promptly (but in any case not later than five days after the Purchase Date) mail or deliver 

  

 A-18 

 
to each tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Issuers for purchase, and the Issuers
will promptly issue a new Note, and the Trustee, upon written request from the Issuers will authenticate and mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not
so accepted shall be promptly mailed or delivered by the Issuers to the Holder thereof. The Issuers will publicly announce the results of the Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be, on the Purchase Date. 

Other than as specifically provided in this Section 3.11, any purchase pursuant to this Section 3.11 shall be made pursuant
to the provisions of Sections 3.03, 3.06 and 3.07 of the Indenture.” 
 ARTICLE III 
 COVENANTS 
 Amendments to Article 4.

 (a) Pursuant to Section 2.02(23) of the Base Indenture, Section 4.03 of the Base Indenture is hereby amended with respect to the
Notes by deleting the text thereof in its entirety and inserting in its place the following: 
 “Whether or not required
by the Commission, so long as any Notes are outstanding, Ventas, Inc. shall furnish to the Holders of Notes, within the time periods specified in the Commission’s rules and regulations: 
 (1) all quarterly and annual financial information that would be required to be contained in a filing with the Commission on Forms 10-Q
and 10-K if Ventas, Inc. were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report on the annual
financial statements by Ventas, Inc.’s certified independent accountants; and 
 (2) all current reports that would be
required to be filed with the Commission on Form 8-K if Ventas, Inc. were required to file such reports. 
 For so long as any
Notes remain outstanding, Ventas, Inc. shall furnish to the Holders and to securities analysts and prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

The availability of the foregoing materials on the Commission’s website or on Ventas, Inc.’s website shall be deemed to
satisfy the foregoing delivery obligations. 
 Whether or not required by the Commission, Ventas, Inc. shall file a copy of
all of the information and reports referred to in clauses (1) and (2) above with the Commission for public availability within the time periods specified in the Commission’s rules and regulations (unless the Commission will not accept
such a filing) and make such information available to securities analysts and prospective investors upon request. 
  

 A-19 

 If Ventas, Inc. has designated any of its Subsidiaries as Unrestricted Subsidiaries, then
the quarterly and annual financial information required by the preceding paragraphs will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial condition and results of operations of Ventas, Inc., as applicable, and its Restricted Subsidiaries separate from the financial condition and results of operations of the
Unrestricted Subsidiaries of Ventas, Inc.” 
 (b) Pursuant to Sections 2.02(8), 2.02(13) and 2.02(14) of the Base Indenture, Article 4
of the Base Indenture is hereby amended with respect to the Notes by adding to the end the following new Sections 4.07 through 4.20, in each case to read as follows: 
 “Section 4.07. Taxes. Ventas, Inc. will pay, and will cause each of its Subsidiaries to pay, prior to delinquency, all
material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes.

 Section 4.08. Stay, Extension and Usury Laws. The Issuers and each of the Guarantors covenants (to the extent
that they may lawfully do so) that they will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that
may affect the covenants or the performance of the Indenture; and the Issuers and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waive all benefit or advantage of any such law, and covenant that they will not, by
resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted. 
 Section 4.09. Restricted Payments. 
 (a) Ventas, Inc. shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly: 
 (1) declare or pay any dividend or make any other payment or distribution on account of Ventas, Inc.’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving Ventas, Inc. or any of its Restricted Subsidiaries) or to the direct or indirect holders of Ventas, Inc.’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions payable (A) in Equity Interests (other than Disqualified Stock) of Ventas, Inc. or (B) to Ventas, Inc. or any of
its Restricted Subsidiaries); 
  

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 (2) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, in connection with any merger or consolidation involving the Partnership) any Equity Interests of (A) the Partnership or any direct or indirect parent of the Partnership or (B) any Restricted Subsidiary, including a Permitted
Joint Venture (in either case other than Equity Interests owned by Ventas, Inc. or any of its Restricted Subsidiaries); 
 (3)
make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Subordinated Debt, except a payment of interest or principal at the stated maturity thereof; or 
 (4) make any Restricted Investment (all such payments and other actions set forth in clauses (1) through (4) of this
Section 4.09(a) being collectively referred to as “Restricted Payments”), 
 unless, at the time of and after giving effect to such Restricted
Payment: 
 (1) no Default shall have occurred and be continuing under the Indenture; 
 (2) Ventas, Inc. and its Restricted Subsidiaries could incur at least $1.00 of Debt (other than Permitted Debt) under the terms of the
Indenture; and 
 (3) the aggregate sum of all Restricted Payments made after December 9, 2005, excluding Restricted
Payments made pursuant to Section 4.09(b) shall not exceed the sum of: 
 (A) 95% of Ventas, Inc.’s and its
Restricted Subsidiaries’ aggregate cumulative Funds from Operations accrued on a cumulative basis from April 1, 2002; 
 (B) the aggregate proceeds or values received after April 17, 2002 from the issuance or sale of Ventas, Inc.’s or the Partnership’s Equity Interests (other than Disqualified Stock and Equity Interests sold to a Subsidiary of
Ventas, Inc.), net of underwriting discounts, commissions, legal fees and similar offering expenses; 
 (C) any dividends or
other distributions received by Ventas, Inc. or any of its Restricted Subsidiaries after April 17, 2002 from an Unrestricted Subsidiary of Ventas, Inc., to the extent that such dividends were not otherwise included in Earnings From Operations
of Ventas, Inc. for such period; and 
 (D) to the extent that any Unrestricted Subsidiary of Ventas, Inc. is or was
redesignated as a Restricted Subsidiary after April 17, 2002, the lesser of (i) the Fair Market Value of Ventas, 

  

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Inc.’s Investment in such Subsidiary as of the date of such redesignation or (ii) such Fair Market Value as of the date on which such Subsidiary
was originally designated as an Unrestricted Subsidiary. 
 (b) Notwithstanding the foregoing, the limitations on Restricted
Payments described in Section 4.09(a) shall not apply to the following: 
 (1) any distribution or other action which is
necessary to maintain Ventas Inc.’s status as a REIT under the Code, if the aggregate principal amount of outstanding Debt of Ventas, Inc. and its Restricted Subsidiaries on a consolidated basis determined in accordance with GAAP is less than
60% of Adjusted Total Assets; 
 (2) any distribution payable in Ventas, Inc.’s Equity Interests (other than Disqualified
Stock); 
 (3) so long as the Partnership is a partnership and no Default or Event of Default has occurred and is continuing
under the Indenture, distributions to partners of the Partnership in an amount, with respect to any period after April 1, 2002, not to exceed the Tax Amount for such period; 
 (4) the redemption, repurchase or other acquisition or retirement of any Equity Interests in exchange for, or out of the net cash proceeds
of a substantially concurrent issue and sale of, Capital Stock to any Person (other than to a Subsidiary of Ventas, Inc.); provided, however, that such net cash proceeds are excluded from Section 4.09(a)(3)(B); 
 (5) any redemption, repurchase or other acquisition or retirement of Subordinated Debt in exchange for, or out of the net cash proceeds of
(a) a substantially concurrent issue and sale of, Capital Stock to any Person (other than to a Restricted Subsidiary of Ventas, Inc.); provided, however, that any such net cash proceeds are excluded from Section 4.09(a)(3)(B)
and are not used under Section 4.09(b)(4) or (b) Permitted Refinancing Debt; 
 (6) repurchases of Capital Stock
deemed to occur upon the exercise of stock options if such Capital Stock represents a portion of the exercise price thereof and repurchases of Capital Stock deemed to occur upon the withholding of a portion of the Capital Stock granted or awarded to
an employee to pay for the taxes payable by such employee upon such grant or award; 
 (7) pro rata dividends and other
distributions on the Capital Stock of any Restricted Subsidiary by such Restricted Subsidiary to a Person other than Ventas, Inc. or any of its Restricted Subsidiaries; 
 (8) the redemption, repurchase or other acquisition or retirement of any Capital Stock of Ventas, Inc. or any Restricted Subsidiary from
any director, officer or employee of Ventas, Inc. or any Restricted Subsidiary, or from such person’s estate, (a) pursuant to any agreement with such director, officer or employee 

  

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or (b) upon the death or termination of directorship or employment of such person, in an aggregate amount under this clause (8) not to exceed $1.5
million in any twelve-month period; 
 (9) the forgiveness of loans to current or former officers or directors of Ventas, Inc.
in an aggregate principal amount since December 9, 2005 of up to $10.0 million; and 
 (10) other Restricted Payments in
an aggregate amount not to exceed $100.0 million since December 9, 2005. 
 (c) Ventas, Inc. and its Restricted
Subsidiaries shall not be prohibited from making the payment of any distribution within 60 days of the declaration thereof if at the date of declaration such payment would have complied with Section 4.09(b). 
 (d) Ventas, Inc. and its Restricted Subsidiaries shall deliver to the Trustee, within the time period for filing its quarterly report on
Form 10-Q as set forth in Section 4.03 hereof, an Officers’ Certificate stating that such Restricted Payment is permitted and setting forth the basis upon which the calculations required by this Section 4.09 were computed, together
with a copy of any fairness opinion or appraisal required by the Indenture. 
 4.10. Dividend and Other Payment
Restrictions Affecting Subsidiaries. 
 (a) Ventas, Inc. shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary (other than the Partnership or any Excluded Joint Venture) to: 

(1) pay dividends or make any other distributions on their Capital Stock to Ventas, Inc. or any of its Restricted Subsidiaries, or with
respect to any other interest or participation in, or measured by, their profits, or pay any indebtedness owed to Ventas, Inc. or any of its Restricted Subsidiaries; 
 (2) make loans or advances to Ventas, Inc. or any of its Restricted Subsidiaries; or 
 (3) transfer any of their properties or assets to Ventas, Inc. or any of its Restricted Subsidiaries. 
 (b) The restrictions in Section 4.10(a) will not apply to encumbrances or restrictions existing under or by reason of: 
 (1) agreements governing Existing Debt and Credit Facilities as in effect on December 9, 2005 and any amendments, modifications,
restatements, extensions, renewals, increases, supplements, refundings, replacements or refinancings of those agreements; provided, however, that the amendments, modifications, restatements, extensions, renewals, increases,
supplements, refundings, replacement 

  

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or refinancings are no more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in those
agreements on December 9, 2005; 
 (2) the Indenture, the Notes and the Securities Guarantees; 
 (3) the applicable law; 
 (4) any instrument governing Debt or Capital Stock of a Person acquired by Ventas, Inc. or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Debt or Capital
Stock was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the
Person, so acquired; provided, however, that, in the case of Debt, such Debt was permitted by Section 4.11 hereof; 
 (5) customary non-assignment provisions in leases entered into in the ordinary course of business and consistent with past practices; 
 (6) purchase money obligations for property acquired in the ordinary course of business that impose restrictions on that property of the
nature described in Section 4.10(a)(3); 
 (7) any agreement for the sale or other disposition of the stock or assets of
a Subsidiary that restricts distributions by that Subsidiary pending its sale or other disposition; 
 (8) Liens securing Debt
otherwise permitted to be incurred by the Indenture or negative covenants with respect to Debt permitted to be secured by Liens that limit the right of the debtor to dispose of the assets subject to such Liens or permitted to be subject to such
Liens; 
 (9) provisions with respect to the disposition or distribution of assets or property in joint venture agreements,
assets sale agreements, stock sale agreements and other similar agreements entered into in the ordinary course of business; and 
 (10) restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business. 
 Section 4.11. Incurrence of Debt. 
 (a) Ventas, Inc. shall not, and shall not
permit any Restricted Subsidiary to, incur any additional Debt (other than Permitted Debt) if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds thereof, the aggregate principal amount of
all of Ventas, Inc.’s and its Restricted Subsidiaries’ outstanding Debt on a consolidated basis determined in accordance with GAAP would be greater than 60% of the sum of (without duplication): 
 (1) the Total Assets of Ventas, Inc. and its Restricted Subsidiaries as of the end of the calendar quarter covered by Ventas, Inc.’s
Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, as of the end of the calendar quarter covered by Ventas,
Inc.’s most recent report filed with the Trustee) prior to the incurrence of such additional Debt (the “Measurement Date”); and 
  

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 (2) the purchase price of any Real Estate Assets or mortgages receivable acquired, and
the amount of any securities offering proceeds received (to the extent that such proceeds were not used to acquire Real Estate Assets or mortgages receivable or used to reduce Debt), by Ventas, Inc. or any of its Restricted Subsidiaries on a
consolidated basis since the Measurement Date (such sum of clauses (1) and (2) being collectively referred to as “Adjusted Total Assets”). 
 (b) In addition to the limitations in Section 4.11(a), Ventas, Inc. shall not, and shall not permit any Restricted Subsidiary to,
incur any Secured Debt (other than Permitted Debt) if, immediately after giving effect to the incurrence of such additional Secured Debt and the application of the proceeds thereof, the aggregate principal amount of all of Ventas, Inc.’s and
its Restricted Subsidiaries’ outstanding Secured Debt on a consolidated basis in accordance with GAAP is greater than 40% of Adjusted Total Assets. 
 (c) In addition to the limitations in Sections 4.11(a) and (b), Ventas, Inc. shall not, and shall not permit any Restricted Subsidiary to, incur any Debt (other than Permitted Debt) if the ratio of Consolidated Income
Available for Debt Service to Annual Debt Service for the four consecutive fiscal quarters ended on the Measurement Date shall have been less than 2.0x, on a pro forma basis after giving effect thereto and to the application of the proceeds
therefrom, and calculated on the assumption that: 
 (1) such Debt and any other Debt incurred by Ventas, Inc. and any of its
Restricted Subsidiaries on a consolidated basis since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Debt, had been incurred at the beginning of such period; 
 (2) the repayment or retirement of any other Debt by Ventas, Inc. and any of its Restricted Subsidiaries on a consolidated basis since the
first day of such four-quarter period had been repaid or retired at the beginning of such period (except that, in making such computation, the amount of Debt under any revolving credit facility shall be computed based upon the average daily balance
of such Debt during such period); 
 (3) in the case of Acquired Debt or Debt incurred in connection with any acquisition
since the first day of such four-quarter period, the related acquisition had occurred as of the first day of such period with appropriate pro forma adjustments 

  

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to, among other things, Consolidated Income Available for Debt Service, with respect to such acquisition being included in such pro forma calculation; and

 (4) in the case of any acquisition or disposition by Ventas, Inc. or any of its Restricted Subsidiaries on a consolidated
basis of any asset or group of assets since the first day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Debt had occurred as of the
first day of such period with the appropriate pro forma adjustments with respect to such acquisition or disposition being included in such pro forma calculation. 
 If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant
four-quarter period bears interest at a floating rate then, for purposes of calculating Annual Debt Service, the interest rate on such Debt will be computed on a pro forma basis as if the average interest rate in effect during the entire such
four-quarter period had been the applicable rate for the entire such period; provided, however, that for purposes of calculating Annual Debt Service for Debt for which there is a corresponding Hedging Obligation, Annual Debt Service
shall be calculated after giving effect to the Hedging Obligation. 
 Section 4.12. Maintenance of Total Unencumbered
Assets. Ventas, Inc. and its Restricted Subsidiaries shall maintain Total Unencumbered Assets as of the end of each fiscal quarter of not less than 150% of the aggregate outstanding principal amount of Ventas, Inc.’s and its Restricted
Subsidiaries’ Unsecured Debt as of the end of each fiscal quarter, all calculated on a consolidated basis in accordance with GAAP. 
 Section 4.13. Asset Sales. 
 (a) Ventas, Inc. shall not, and shall not permit any
of its Restricted Subsidiaries to, consummate an Asset Sale unless: 
 (1) Ventas, Inc. (or the Restricted Subsidiary, as the
case may be) receives consideration at the time of the Asset Sale at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; 
 (2) the Fair Market Value is set forth in an Officers’ Certificate delivered to the Trustee; provided, however, that
this clause (2) will not apply to sales of assets pursuant to contracts in effect on December 9, 2005; and 
 (3) at
least 75% of the consideration received in the Asset Sale by Ventas, Inc. or such Restricted Subsidiary is in the form of cash, Cash Equivalents and/or Replacement Assets. For purposes of this provision, each of the following will be deemed to be
cash: 
 (A) any liabilities, as shown on Ventas, Inc.’s or such Restricted Subsidiaries’ most recent balance
sheet, of Ventas, Inc. or any such Restricted Subsidiary (other than contingent liabilities and liabilities 

  

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that are by their terms subordinated to the Notes or any related Guarantee) that are assumed by the transferee of any such assets but, except in the case of
an Asset Sale to a Restricted Subsidiary of Ventas, Inc., only to the extent of the reduction in the amount of such liabilities on Ventas, Inc.’s consolidated balance sheet; 
 (B) any securities, notes or other obligations received by Ventas, Inc. or any such Restricted Subsidiary from such transferee that are
contemporaneously, subject to ordinary settlement periods, converted by Ventas, Inc. or such Restricted Subsidiary into cash, to the extent of the cash received in that conversion; 
 (C) the cash amount drawable by Ventas, Inc. under any irrevocable letter of credit provided to Ventas, Inc. as consideration for such
Asset Sale (provided that such amount is drawn before the expiration of such irrevocable letter of credit); and 
 (D) any
other consideration received in Asset Sales since December 9, 2005 that is designated by Ventas, Inc. as “Designated Cash Consideration”; provided, however, that the aggregate Fair Market Value of all Designated Cash
Consideration does not exceed 10% of Consolidated Net Tangible Assets. 
 (b) Within 365 days after the receipt of any Net
Proceeds from an Asset Sale or Qualified CMBS Transaction, Ventas, Inc. may apply those Net Proceeds: 
 (1) to repay Debt and
other Obligations under a Credit Facility; 
 (2) to acquire all or substantially all of the assets of, or a majority of the
Voting Stock of, another Permitted Business; 
 (3) to make a capital expenditure; 
 (4) to acquire or enter into a legally binding obligation to acquire Replacement Assets; or 
 (5) to acquire other long-term assets that are used or useful in a Permitted Business. 
 Pending the final application of any Net Proceeds, Ventas, Inc. may temporarily reduce revolving credit borrowings or otherwise invest the
Net Proceeds in any manner that is not prohibited by the Indenture. 
 (c) Any Net Proceeds from Asset Sales or Qualified CMBS
Transactions that are not applied or invested as provided in Section 4.13(b) will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $35.0 million, the Issuers will make an Asset Sale Offer or Qualified
CMBS Transaction Offer, as applicable, pursuant to Section 3.11 hereof to all Holders of Notes and all holders of other Debt that 

  

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is pari passu with the Notes containing provisions similar to those set forth in this Section 4.13 (including, without limitation, the holders of
notes outstanding under the Issuers’ existing indentures) with respect to offers to purchase or redeem with the proceeds of sales of assets or in connection with securitizations to purchase the maximum principal amount of Notes and such other
pari passu Debt that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer or Qualified CMBS Transaction Offer will be equal to 100% of the principal amount of any Notes purchased plus accrued and unpaid
interest thereon to the date of purchase, and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer or a Qualified CMBS Transaction Offer, the Issuers may use those Excess Proceeds for any purpose not
otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari passu Debt tendered pursuant to such Asset Sale Offer or Qualified CMBS Transaction Offer, as applicable, exceeds the amount of Excess Proceeds,
the Trustee will select the Notes and such other pari passu Debt to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer and Qualified CMBS Transaction Offer, the amount of Excess Proceeds will be reset at zero.

 The Issuers will comply with the requirements of Rule l4e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer or Qualified CMBS Transaction Offer. To the extent that the provisions of any securities laws
or regulations conflict with the Asset Sale or Qualified CMBS Transaction provisions of the Indenture, the Issuers will comply with the applicable securities laws and regulations and will not be deemed to have breached their obligations under the
Asset Sale or Qualified CMBS Transaction provisions of the Indenture by virtue of such conflict. 
 Section 4.14.
Transactions with Affiliates. 
 (a) Ventas, Inc. shall not, and shall not permit its Restricted Subsidiaries to, make
any payment to, or sell, lease, transfer or otherwise dispose of any of their properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or
guarantee with, or for the benefit of, any Affiliate or 10% Stockholder (each, an “Affiliate Transaction”), unless the Affiliate Transaction is on terms that are no less favorable to Ventas, Inc. or the relevant Restricted Subsidiary than
those that would have been obtained in a comparable transaction by Ventas, Inc. or such Restricted Subsidiary with an unrelated Person; provided, however, that for an Affiliate Transaction with an aggregate value of $10.0 million or
more, at Ventas, Inc.’s option, either: 
 (1) a majority of the members of the Board of Directors of Ventas, Inc. who
have no conflicting financial interest in the Affiliate Transaction shall determine in good faith that such Affiliate Transaction is on terms that are not materially less favorable than those that might reasonably have been obtained in a comparable
transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of Ventas, Inc.; or 
  

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 (2) the Board of Directors of Ventas, Inc. shall obtain an opinion from a nationally
recognized investment banking, appraisal or accounting firm that such Affiliate Transaction is fair to Ventas, Inc. or the applicable Restricted Subsidiary from a financial point of view. 
 (b) The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of
Section 4.14(a): 
 (1) directors’ fees, indemnification and similar arrangements, consulting fees, employee
salaries, bonuses or employment agreements, compensation or employee benefit arrangements and incentive arrangements with, and loans and advances to, any officer, director or employee in the ordinary course of business; 
 (2) performance of all agreements in existence on December 9, 2005 and any modification thereto or any transaction contemplated
thereby in any replacement agreement therefor so long as such modification or replacement is not materially more disadvantageous to Ventas, Inc. or any of its Restricted Subsidiaries than the original agreement in effect on December 9, 2005;

 (3) customary transactions in connection with a Qualified CMBS Transaction; 
 (4) transactions between or among Ventas, Inc. and/or its Restricted Subsidiaries (other than any Permitted Joint Venture); 
 (5) transactions with a Person (other than a Permitted Joint Venture and its Subsidiaries) that is an Affiliate of Ventas, Inc. or any of
its Restricted Subsidiaries solely because Ventas, Inc. or a Restricted Subsidiary owns an Equity Interest in, or controls, such Person; 
 (6) sales of Equity Interests (other than Disqualified Stock) to Affiliates of Ventas, Inc. or any of its Restricted Subsidiaries; and 
 (7) Restricted Payments that are permitted by Section 4.09 hereof. 
 Section 4.15. Offer to Repurchase Upon Change of Control. 
 (a) If a Change of Control occurs, each Holder of Notes will have the right to require the Issuers to purchase some or all (in principal
amounts of $1,000 or an integral multiple of $1,000) of such Holder’s Notes pursuant to the offer described in Section 4.15(b) (the “Change of Control Offer”), unless, after giving pro forma effect to the Change of Control,
(i) Moody’s and S&P shall have confirmed their ratings of the Notes at Ba3 or higher and BB- or higher, respectively, (ii) the ratio of Consolidated Income Available for Debt Service to Annual Debt Service for the four consecutive
fiscal quarters ended on the most recent Measurement Date prior to the date of such Change of Control after such Change of Control is at least equal to the ratio of Consolidated Income Available for Debt Service to Annual Debt Service prior to such
Change of Control and (iii) the Person formed by or surviving any consolidation or merger (if other than the 

  

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Partnership) or to which any sale, assignment, transfer, conveyance or other disposition has been made forming the basis of the Change of Control is
principally engaged in a Permitted Business. 
 (b) Any Change of Control Offer will include a cash offer price of 101% of the
principal amount of any Notes purchased plus accrued and unpaid interest thereon to the date of purchase (the “Change of Control Payment”). If a Change of Control Offer is required, within 10 Business Days following a Change of Control,
the Issuers shall mail a notice to each Holder describing the Change of Control and offering to repurchase Notes on a specified date (the “Change of Control Payment Date”). The Change of Control Payment Date will be no earlier than 30 days
and no later than 60 days from the date the notice is mailed. The notice shall state: 
 (1) that the Change of Control Offer
is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment; 
 (2) the purchase
price and the Change of Control Payment Date; 
 (3) that any Note not tendered will continue to accrue interest; 

(4) that, unless the Issuers default in the payment of the Change in Control Payment, all Notes accepted for payment pursuant to the
Change of Control Offer will cease to accrue interest after the Change of Control Payment Date; 
 (5) that Holders electing
to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes completed, to the Paying Agent at the
address specified in the notice prior to the close of business on the third Business Day preceding the Change of Control Payment Date; 
 (6) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing its election to have the Notes purchased; and 
 (7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered, which unpurchased portion must be equal to $1,000 in principal amount or an integral multiple thereof. 
 The Issuers will comply with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations to the extent those laws and regulations are applicable to any Change of Control
Offer. If the provisions of any of the applicable securities laws or securities regulations conflict with the provisions of this Section 4.15, the Issuers will comply with the applicable securities laws and regulations and will not be deemed to
have breached their obligations under this Section 4.15 by virtue of that compliance. 
  

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 (c) On the Change of Control Payment Date, the Issuers will, to the extent lawful:

 (1) accept for payment all Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; 

(2) deposit the Change of Control Payment with the Paying Agent in respect of all Notes so accepted; and 
 (3) deliver to the Trustee the Notes accepted and an Officers’ Certificate stating the aggregate principal amount of all Notes
purchased. 
 The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control Payment for
such Notes, and the Trustee will promptly authenticate and mail, or cause to be transferred by book entry, to each Holder a new Note in principal amount equal to any unpurchased portion of the Notes surrendered. 
 (d) A third party, instead of the Issuers, may make the Change of Control Offer in compliance with the requirements set forth in this
Section 4.15 and purchase all Notes properly tendered and not withdrawn. In addition, the Issuers shall not be obligated to make or consummate a Change of Control Offer if they have irrevocably elected to redeem all of the Notes pursuant to
Section 3.09 and have not defaulted in their redemption obligations. The provisions under this Section 4.15 may be waived or modified with the written consent of the Holders of a majority in principal amount of the Notes then Outstanding.

 Section 4.16. Payments for Consent. Ventas, Inc. shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of the Indenture or the
Notes unless such consideration is offered to be paid and is paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 

Section 4.17. Additional Guarantees. If Ventas, Inc. acquires or creates another Subsidiary after the date of the Second
Supplemental Indenture, other than an Excluded Joint Venture or a Subsidiary that has properly been designated as an Unrestricted Subsidiary in accordance with the Indenture for so long as it continues to constitute an Excluded Joint Venture or an
Unrestricted Subsidiary, then that newly acquired or created Subsidiary shall become a Guarantor and execute a supplemental indenture and deliver a customary Opinion of Counsel satisfactory to the Trustee within 10 Business Days of the date on which
it was acquired or created. The form of such supplemental indenture is attached as Exhibit B to this Second Supplemental Indenture. 
  

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 Section 4.18. Restrictions on Activities of Ventas Capital. Ventas Capital
may not hold any material assets, become liable for any material obligations or engage in any significant business activities; provided, however, that Ventas Capital may be a co-obligor with respect to Debt if the Partnership is a
primary obligor of such Debt and the net proceeds of such Debt are received by the Partnership or one or more of its Restricted Subsidiaries other than Ventas Capital. 
 Section 4.19. Designation of Restricted and Unrestricted Subsidiaries. The Board of Directors of Ventas, Inc. may designate
any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would not cause a Default under the Indenture. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
investments owned by Ventas, Inc. and its Restricted Subsidiaries in the Subsidiary properly designated will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under
Section 4.09 or Permitted Investments, as determined by Ventas, Inc. That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. The Board of Directors of Ventas, Inc. may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that such designation will be deemed to be an incurrence of Debt by a Restricted
Subsidiary of Ventas, Inc. of any outstanding Debt of such Unrestricted Subsidiary and such designation will only be permitted if (1) such Debt is permitted under Section 4.11 and 4.12 calculated on a pro forma basis as if such designation
had occurred at the beginning of the four-quarter reference period; and (2) no Default or Event of Default would be in existence under the Indenture following such designation. 
 Section 4.20. Changes in Covenants When Notes Rated Investment Grade. 
 (a) If on any date following the date of the Second Supplemental Indenture: 
 (1) the Notes are rated either Baa3 or better by Moody’s or BBB- or better by S&P (the “Investment Grade Rating”) (or,
if either such entity ceases to rate the Notes for reasons outside of the control of Ventas, Inc., the equivalent investment grade credit rating from any other “nationally recognized statistical rating organization” as that term is used in
Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by Ventas, Inc. as a replacement agency); and 
 (2) no Default or
Event of Default shall have occurred and be continuing under the Indenture, 
 then, beginning on that date, and subject to the provisions of
Section 4.20(b) and (c) hereof, the following covenants will be suspended (subject to reinstatement as described in Section 4.20(b) hereof): Sections 4.09, 4.10, 4.11, 4.13, 4.14 and 4.15. The Issuers shall provide the Trustee with an
Officers’ Certificate stating that the conditions set forth in clauses (1) and (2) above have been satisfied. 
  

 A-32 

 (b) Notwithstanding Section 4.20(a) hereof, if the Investment Grade Rating should
subsequently decline to below Baa3 or BBB-, respectively, the foregoing covenants shall be reinstituted as of and from the date of such rating decline. In that case, Section 4.09 shall be interpreted as if it had been in effect since
December 9, 2005 except that no Default will be deemed to have occurred solely by reason of a Restricted Payment made while any such covenant was suspended. 
 (c) Notwithstanding Section 4.20(b) hereof, neither (1) the continued existence following the reinstatement of the foregoing
covenants of facts and circumstances or obligations that were incurred or otherwise came into existence while the foregoing covenants were suspended nor (2) the performance of any such obligations, including the consummation of any transaction
pursuant to, and on materially the same terms as, a contractual agreement in existence prior to the reinstatement of the foregoing covenants, shall constitute a breach of any such covenants or cause a Default or Event of Default thereunder;
provided, however, that (A) Ventas, Inc. and its Restricted Subsidiaries did not incur or otherwise cause such facts and circumstances or obligations to exist in anticipation of the reinstatement of the foregoing covenants and
(B) Ventas, Inc. and its Restricted Subsidiaries did not reasonably believe that such incurrence or actions would result in such reinstatement. For purposes of clause (2) above, any increase in the consideration to be paid prior to such
amendment or modification to the terms of an existing obligation following the reinstatement of the foregoing covenants that does not exceed 10% of the consideration that was to be paid prior to such amendment or modification shall not be deemed a
“material” amendment or modification. For purposes of clauses (A) and (B) above, anticipation and reasonable belief may be determined by Ventas, Inc. and shall be conclusively evidenced by a board resolution to such effect
adopted by the Board of Directors of Ventas, Inc. The Board of Directors of Ventas, Inc. in making its determination may, but need not, consult with Moody’s or S&P, as applicable. 
 (d) If on any date following the date of the Second Supplemental Indenture: 
 (1) the Notes are rated both Baa3 or better by Moody’s and BBB- or better by S&P (or, if either such entity ceases to rate the
Notes for reasons outside of the control of Ventas, Inc., the equivalent investment grade credit rating from any other “nationally recognized statistical rating organization” as that term is used in Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act selected by Ventas, Inc. as a replacement agency); and 
 (2) no Default or Event of Default shall have occurred
and be continuing under the Indenture, 
 then, beginning on that day, and subject to the provisions of Section 4.20(e) and
(f) hereof, the following covenants will no longer be applicable to the Notes (subject to reinstatement of Section 4.11 as described in Section 4.20(e) hereof): Sections 4.09, 4.10, 4.11, 4.13, 4.14 and 4.15. The Issuers shall provide
the Trustee with an Officers’ Certificate stating that the conditions set forth in clauses (1) and (2) above have been satisfied. 
  

 A-33 

 (e) Notwithstanding Section 4.20(d) hereof, if the rating assigned by both rating
agencies specified in Section 4.20(d)(1) hereof should subsequently decline to below Baa3 and BBB-, respectively, Section 4.11 shall be reinstituted as of and from the date of such ratings decline. 
 (f) Notwithstanding Section 4.20(e) hereof, neither (1) the continued existence following the reinstatement of Section 4.11
of facts and circumstances or obligations that were incurred or otherwise came into existence while Section 4.11 was suspended nor (2) the performance of any such obligations, including the consummation of any transaction pursuant to, and
on materially the same terms as, a contractual agreement in existence prior to the reinstatement of Section 4.11, shall constitute a breach of Section 4.11 or cause a Default or Event of Default thereunder; provided, however,
that (A) Ventas, Inc. and its Restricted Subsidiaries did not incur or otherwise cause such facts and circumstances or obligations to exist in anticipation of the reinstatement of Section 4.11 and (B) Ventas, Inc. and its Restricted
Subsidiaries did not reasonably believe that such incurrence or actions would result in such reinstatement. For purposes of clause (2) above, any increase in the consideration to be paid prior to such amendment or modification to the terms of
an existing obligation following the reinstatement of Section 4.11 that does not exceed 10% of the consideration that was to be paid prior to such amendment or modification shall not be deemed a “material” amendment or modification.
For purposes of clauses (A) and (B) above, anticipation and reasonable belief may be determined by Ventas, Inc. and shall be conclusively evidenced by a board resolution to such effect adopted by the Board of Directors of Ventas, Inc. The
Board of Directors of Ventas, Inc. in making its determination may, but need not, consult with Moody’s and S&P.” 
 ARTICLE IV

 SUCCESSORS 
 Amendments to
Section 5.01. Pursuant to Section 2.02(14) of the Base Indenture, Section 5.01 of the Base Indenture is hereby amended with respect to the Notes by deleting the word “and” from the end of clause (2) thereof,
deleting the “.” at the end of clause (3) thereof and replacing it with the phrase “under the Indenture; and” and adding to the end the following new clause (4) thereof to read as follows: 
 “(4) Ventas, Inc. or the Person formed by or surviving any such consolidation or merger (if other than Ventas, Inc.), or to which
such sale, assignment, transfer, conveyance or other disposition has been made will, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the
applicable four-quarter period, be permitted to incur at least $1.00 of additional Debt (other than Permitted Debt) pursuant to Section 4.11.” 
  

 A-34 

 ARTICLE V 
 DEFAULTS AND REMEDIES 
 Amendments to Section 6.01. Pursuant to Section 2.02(14) of the
Base Indenture, Section 6.01 of the Base Indenture is hereby amended with respect to the Notes by deleting the “or” at the end of clause (8), deleting clause (9), and adding to the end the following new clauses (9) and (10), in
each case to read as follows: 
 “(9) Ventas, Inc. or its Restricted Subsidiaries fail to make or consummate a Change of
Control Offer following a Change of Control when required under Section 4.15; or 
 (10) final judgments aggregating in
excess of $50.0 million (exclusive of amounts covered by insurance) are entered against Ventas, Inc. and its Restricted Subsidiaries and are not paid, discharged or stayed for a period of 60 days.” 
 Construction of Sections 6.04 and 6.07. The references in Sections 6.04 and 6.07 of the Base Indenture to an “offer to purchase” when
used with respect to the Notes shall be deemed to include a Change of Control Offer, Asset Sale Offer and CMBS Qualified Transaction Offer made in accordance with Section 3.11 and Section 4.13 or Section 4.15 of the Indenture.

 ARTICLE VI 
 LEGAL DEFEASANCE
AND COVENANT DEFEASANCE 
 Applicability of Defeasance Provisions. Pursuant to Sections 2.02(17) and 8.01 of the Base Indenture, so
long as any of the Notes are Outstanding, Sections 8.02 and 8.03 of the Base Indenture shall be applicable to the Notes. 
 Determinations
Under Section 8.03. For the purposes of Sections 2.02(17) and 8.03 of the Base Indenture, Section 8.03 of the Base Indenture shall apply to Sections 4.09 through 4.19, inclusive, and clause (4) of Section 5.01 of the
Indenture. 
 Determination Under Section 8.07. For the purposes of Sections 8.07 and 11.02 of the Base Indenture, the provisions
of Section 8.07 of the Base Indenture shall apply to the Notes. 
 ARTICLE VII 
 GUARANTEES 
 Applicability of and Determinations Under Guarantee Provisions.

 (a) Pursuant to Sections 2.02(1) and 10.01 of the Base Indenture, so long as any of the Notes are Outstanding, Article 10 shall be
applicable to the Notes. 
  

 A-35 

 (b) In the event that the Issuers create or acquire any Restricted Subsidiary after the date of this
Second Supplemental Indenture, if required by Section 4.17 of the Indenture, the Issuers will cause such Restricted Subsidiary to comply with the provisions of Section 4.17 of the Indenture and Article VII of the Second Supplemental
Indenture, to the extent applicable. 
 (c) To evidence its Guarantee in accordance with Section 10.03 of the Indenture, each of the
Guarantors listed on Schedule II hereto and each additional Guarantor pursuant to Section 4.17 of the Indenture agrees that a notation of such Guarantee substantially in the form attached as Exhibit C hereto will be endorsed by an Officer
of such Guarantor on each Note authenticated and delivered by the Trustee and that the Indenture has been or will be executed on behalf of such Guarantor by one of its Officers. 
 Amendment to Article 10. Pursuant to Section 2.02(1) of the Base Indenture, Article 10 of the Base Indenture is hereby amended with respect
to the Notes by adding to the end the following new Sections 10.05 and 10.06, in each case to read as follows: 
 “Section 10.05. Releases Following Sale of Assets. The Securities Guarantee of a Guarantor will be released, and any Person acquiring assets (including by way of merger or consolidation) or Capital Stock of a Guarantor in
accordance with the provisions of (1) or (2) below shall not be required to assume the obligations of any such Guarantor: 
 (1) in connection with any sale or other disposition of all or substantially all of the assets of that Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such
transaction) a Restricted Subsidiary (other than a Permitted Joint Venture) of Ventas, Inc., if the sale or other disposition complies with Section 4.13; 
 (2) in connection with any sale of all of the Capital Stock of a Guarantor to a Person that is not (either before or after giving effect
to such transaction) a Restricted Subsidiary (other than a Permitted Joint Venture) of Ventas, Inc., if the sale complies with Section 4.13; 
 (3) if the Issuers or Ventas, Inc. designate any Restricted Subsidiary that is a Guarantor to be an Excluded Joint Venture or an Unrestricted Subsidiary in accordance with the applicable provisions of the Indenture;
or 
 (4) in the event that the Issuers exercise their discharge or full defeasance options pursuant to Article 8. 

Any Guarantor not released from its obligations under its Securities Guarantee will remain liable for the full amount of principal of
and interest on the Notes and for the other obligations of any Guarantor under the Indenture as provided in this Article 10. 
  

 A-36 

 Section 10.06. Releases Following Investment Grade Ratings. If, on any date
following the date of the Second Supplemental Indenture: 
 (1) the Notes are rated both Baa3 or better by Moody’s and
BBB- or better by S&P (or, if either such entity ceases to rate the Notes for reasons outside of the control of Ventas, Inc., the equivalent investment grade credit rating from any other “nationally recognized statistical rating
organization” as that term is used in Rule l5c3-1(c)(2)(vi)(F) under the Exchange Act selected by Ventas, Inc. as a replacement agency); 
 (2) each rating agency specified in clause (1) above provides written notice to the Issuers and the Trustee stating that the release of all of the Securities Guarantees will not cause the rating assigned to the
Notes by such rating agency to decline to below Baa3 or BBB-, as applicable; and 
 (3) no Default or Event of Default shall
have occurred and be continuing under the Indenture, 
 then, beginning on that day, the Securities Guarantee of each Guarantor will be
released. The Issuers shall provide the Trustee with an Officers’ Certificate stating that the conditions set forth in clauses (1), (2) and (3) above have been satisfied.” 
 ARTICLE VIII 
 MISCELLANEOUS 
 Determination Under Section 13.10. For the purposes of Section 13.10 of the Base Indenture, the agreements of each Guarantor will bind
its successors except as otherwise provided in Article 10 of the Base Indenture, as supplemented by Article VII of this Supplemental Indenture. 
 Application of Supplemental Indenture; Ratification. 
 (a) Each and every term and condition contained in this Supplemental
Indenture that modifies, amends or supplements the terms and conditions of the Base Indenture shall apply only to the Notes created hereby and not to any future series of Securities established under the Indenture. 
 (b) The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture and
this Supplemental Indenture shall be read, taken and construed as the same instrument. 
 (c) In the event of any conflict between this
Supplemental Indenture and the Base Indenture, the provisions of this Supplemental Indenture shall prevail. 
 Benefits of Supplemental
Indenture. Nothing contained in this Supplemental Indenture shall or shall be construed to confer upon any Person other than a Holder of the Notes, the Issuers, the Guarantors or the Trustee any right or interest to avail itself of any benefit
under any provision of the Base Indenture or this Supplemental Indenture. 
  

 A-37 

 Effective Date. This Supplemental Indenture shall be effective as of the date first above written
and upon the execution and delivery hereof by each of the parties hereto. 
 Governing Law. This Supplemental Indenture shall be
governed by, and construed in accordance with, the laws of the State of New York, without regard to conflicts of laws principles thereof. 
 Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same
instrument. 
  

 A-38 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed by
their respective officers hereunto duly authorized, all as of the day and year first above written. 
  

			
	 VENTAS REALTY, LIMITED PARTNERSHIP

					
			
		 	 By:
	 	Ventas, Inc., its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary

					
	
	 VENTAS CAPITAL CORPORATION

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President and Secretary
	
	GUARANTORS
	
	 VENTAS, INC.

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary
		
		 	 VENTAS HEALTHCARE PROPERTIES, INC.

		 	 VENTAS FRAMINGHAM, LLC

		 	 VENTAS SUN LLC

		 	 VENTAS CAL SUN, LLC

		 	 VENTAS PROVIDENT, LLC

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

  

 A-39 

					
		 	 VENTAS LP REALTY, L.L.C.

			
		 	 By:
	 	Ventas, Inc., its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	 Executive Vice President, Chief Administrative Officer, General
 Counsel and Corporate Secretary

		
		 	 VENTAS TRS, LLC

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President
		
		 	 ELDERTRUST

		 	 ET CAPITAL CORP.

		 	 ET SUB-LOPATCONG, L.L.C.

		 	 ET PENNSBURG FINANCE, L.L.C.

		 	 ET SUB-PLEASANT VIEW, L.L.C.

		 	 ET SUB-SMOB, L.L.C.

		 	 ET WAYNE FINANCE, L.L.C.

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Secretary
	
	 ET SUB-BERKSHIRE LIMITED PARTNERSHIP

					
			
		 	 By:
	 	ET Berkshire, LLC, its General Partner
		 	 By:
	 	ElderTrust, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Secretary

  

 A-40 

			
	ET BERKSHIRE, LLC
	ET SUB-HERITAGE WOODS, L.L.C.
	ET GENPAR, L.L.C.
	ET SUB-LACEY I, L.L.C.
	ET LEHIGH, LLC
	ET SUB-PHILLIPSBURG I, L.L.C.
	ET SANATOGA, LLC

					
			
		 	By:	 	ElderTrust, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Secretary

			
	
	 ET SUB-HIGHGATE, L.P.

	 ET SUB-RITTENHOUSE LIMITED PARTNERSHIP, L.L.P.

	 ET SUB-RIVERVIEW RIDGE LIMITED PARTNERSHIP, L.L.P.

	 ET SUB-WILLOWBROOK LIMITED PARTNERSHIP, L.L.P.

	 ET SUB-WOODBRIDGE, L.P.

					
			
		 	By:	 	ET GENPAR, L.L.C., its General Partner

					
		 	By:	 	ElderTrust, its General Partner

					
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Secretary

			
	
	ET SUB-LEHIGH LIMITED PARTNERSHIP

					
			
		 	By:	 	ET Lehigh, LLC, its General Partner
		 	By:	 	ElderTrust, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Secretary

  

 A-41 

			
	 ET SUB-PENNSBURG MANOR LIMITED PARTNERSHIP, L.L.P.

					
			
		 	 By:
	 	ET Pennsburg Finance, L.L.C., its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Secretary

			
	
	 ET SUB-SANATOGA LIMITED PARTNERSHIP

					
			
		 	 By:
	 	ET Sanatoga, LLC, its General Partner
		 	 By:
	 	ElderTrust, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Secretary

			
	
	 ET SUB-WAYNE I LIMITED PARTNERSHIP, L.L.P.

					
			
		 	 By:
	 	ET Wayne Finance, L.L.C., its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Secretary

					
		
		 	 ET WAYNE FINANCE, INC.

			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Chairman, Executive Vice President and Secretary
		
		 	 PSLT GP, LLC

					
			
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

  

 A-42 

			
	 PSLT OP, L.P.

					
			
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

			
	
	 PSLT-BLC PROPERTIES HOLDINGS, LLC

	 PSLT-ALS PROPERTIES HOLDINGS, LLC

					
			
		 	 By:
	 	PSLT OP, L.P., its Sole Member
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

  

 A-43 

			
	 BROOKDALE LIVING COMMUNITIES OF ARIZONA-EM, LLC

	 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA, LLC

	 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-RC, LLC

	 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-SAN MARCOS, LLC

	 BROOKDALE LIVING COMMUNITIES OF ILLINOIS-2960, LLC

	 BROOKDALE LIVING COMMUNITIES OF ILLINOIS-II, LLC

	 BROOKDALE HOLDINGS, LLC

	 BROOKDALE LIVING COMMUNITIES OF MASSACHUSETTS-RB, LLC

	 BROOKDALE LIVING COMMUNITIES OF MINNESOTA, LLC

	 BROOKDALE LIVING COMMUNITIES OF NEW YORK-GB, LLC

	 BROOKDALE LIVING COMMUNITIES OF WASHINGTON-PP, LLC

					
			
		 	 By:
	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
		 	 By:
	 	PSLT OP, L.P., its Sole Member
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

			
	
	BLC OF CALIFORNIA-SAN MARCOS, L.P.

					
			
		 	 By:
	 	Brookdale Living Communities of California-San Marcos, LLC, its General Partner
		 	 By:
	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
		 	 By:
	 	PSLT OP, L.P., its Sole Member
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

  

 A-44 

			
	 THE PONDS OF PEMBROKE LIMITED PARTNERSHIP

	 RIVER OAKS PARTNERS

					
			
		 	 By:
	 	Brookdale Holdings, LLC, its General Partner
		 	 By:
	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
		 	 By:
	 	PSLT OP, L.P., its Sole Member
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Corporate Secretary

			
	
	 PSLT-ALS PROPERTIES I, LLC

					
			
		 	 By:
	 	PSLT-ALS Properties Holdings, LLC, its Sole Member
		 	 By:
	 	PSLT OP, L.P., its Sole Member
		 	 By:
	 	PSLT GP, LLC, its General Partner
		 	 By:
	 	Ventas Provident, LLC, its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President,
		 		 	General Counsel and Corporate Secretary

			
	
	 VTRLTH MAB I, LLC

	 VTRLTH MAB II, LLC

	 VSCRE HOLDINGS, LLC

	 UNITED REHAB REALTY HOLDING, LLC

	 BCC MARTINSBURG REALTY, LLC

	 BCC ONTARIO REALTY, LLC

	 BCC MEDINA REALTY, LLC

	 BCC WASHINGTON TOWNSHIP REALTY, LLC

	 EC TIMBERLIN PARC REALTY, LLC

	 EC HALCYON REALTY, LLC

	 EC HAMILTON PLACE REALTY, LLC

	 EC LEBANON REALTY, LLC

  

 A-45 

			
	 BCC ALTOONA REALTY, LLC

	 BCC ALTOONA REALTY GP, LLC

	 BCC READING REALTY, LLC

	 BCC READING REALTY GP, LLC

	 BCC BERWICK REALTY, LLC

	 BCC BERWICK REALTY GP, LLC

	 BCC LEWISTOWN REALTY, LLC

	 BCC LEWISTOWN REALTY GP, LLC

	 BCC STATE COLLEGE REALTY, LLC

	 BCC STATE COLLEGE REALTY GP, LLC

	 SHIPPENSBURG REALTY HOLDINGS, LLC

	 BCC SHIPPENSBURG REALTY, LLC

	 IPC (AP) HOLDING LLC

	 AL (AP) HOLDING LLC

	 ALLISON PARK NOMINEE LLC

	 IPC (HCN) HOLDING LLC

	 AL (HCN) HOLDING LLC

	 BLOOMSBURG NOMINEE LLC

	 SAGAMORE HILLS NOMINEE LLC

	 LEBANON NOMINEE LLC

	 KNOXVILLE NOMINEE LLC

	 KINGSPORT NOMINEE LLC

	 HENDERSONVILLE NOMINEE LLC

	 SAXONBURG NOMINEE LLC

	 LOYALSOCK NOMINEE LLC

	 IPC (MT) HOLDING LLC

	 AL (MT) HOLDING LLC

	 LEWISBURG NOMINEE LLC

	 LIMA NOMINEE LLC

	 XENIA NOMINEE LLC

	 CHIPPEWA NOMINEE, LLC

	 DILLSBURG NOMINEE LLC

					
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary
		
		 	 BCC ALTOONA REALTY, LP

			
		 	 By:
	 	BCC Altoona Realty GP, LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

  

 A-46 

			
	BCC READING REALTY, LP

					
			
		 	By:	 	BCC Reading Realty GP, LLC, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President, General Counsel and Secretary
		
		 	BCC BERWICK REALTY, LP

					
			
		 	By:	 	BCC Berwick Realty GP, LLC, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President, General Counsel and Secretary

					
		
		 	BCC LEWISTOWN REALTY, LP

					
			
		 	By:	 	BCC Lewistown Realty GP, LLC, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President,
		 		 	General Counsel and Secretary

					
		
		 	BCC STATE COLLEGE REALTY, LP

					
			
		 	By:	 	BCC State College Realty GP, LLC, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President,
		 		 	General Counsel and Secretary

					
		
		 	ALLISON PARK NOMINEE LP

					
			
		 	By:	 	Allison Park Nominee LLC, its General Partner
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President, General Counsel and Secretary

  

 A-47 

			
	 BLOOMSBURG NOMINEE LP

					
			
		 	 By:
	 	Bloomsburg Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	 SAGAMORE HILLS NOMINEE LP

					
			
		 	 By:
	 	Sagamore Hills Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President,
		 		 	General Counsel and Secretary

			
	
	 LEBANON NOMINEE LP

					
			
		 	 By:
	 	Lebanon Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	 KINGSPORT NOMINEE LP

					
			
		 	 By:
	 	Kingsport Nominee LLC, its General Partner

			
		
	 By:
	 	 /s/ T. Richard Riney

	 Name:
	 	T. Richard Riney
	 Title:
	 	Executive Vice President, General Counsel and Secretary
	
	 KNOXVILLE NOMINEE LP

					
			
		 	 By:
	 	Knoxville Nominee LLC, its General Partner

			
		
	 By:
	 	 /s/ T. Richard Riney

	 Name:
	 	T. Richard Riney
	 Title:
	 	Executive Vice President, General Counsel and Secretary

  

 A-48 

			
	 HENDERSONVILLE NOMINEE LP

					
			
		 	 By:
	 	Hendersonville Nominee LLC, its General Partner

			
		
	 By:
	 	 /s/ T. Richard Riney

	 Name:
	 	T. Richard Riney
	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	 SAXONBURG NOMINEE LP

					
			
		 	 By:
	 	Saxonburg Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	 LOYALSOCK NOMINEE LP

					
			
		 	 By:
	 	Loyalsock Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President,
		 		 	General Counsel and Secretary

			
	
	 LEWISBURG NOMINEE LP

					
			
		 	 By:
	 	Lewisburg Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

  

 A-49 

			
	     LIMA NOMINEE LP

					
			
		 	 By:
	 	Lima Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	     XENIA NOMINEE LP

					
			
		 	 By:
	 	Xenia Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

			
	
	     CHIPPEWA NOMINEE LP

					
			
		 	 By:
	 	Chippewa Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary

					
	
	     DILLSBURG NOMINEE LP

			
		 	 By:
	 	Dillsburg Nominee LLC, its General Partner
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President, General Counsel and Secretary
	
	     VENTAS CARROLL MOB, LLC

	     VENTAS DASCO MOB HOLDINGS, LLC

	     VENTAS MO HOLDINGS, LLC

	     VENTAS MOB HOLDINGS, LLC

	     VENTAS UNIVERSITY MOB, LLC

	     VENTAS NEXCORE HOLDINGS, LLC

	     VENTAS BROADWAY MOB, LLC

	     VENTAS CASPER HOLDINGS, LLC

	 SZR US INVESTMENTS, INC.

  

 A-50 

			
	     VENTAS SSL HOLDINGS, INC.

	     VENTAS SSL ONTARIO III, INC.

	 SZR MISSISSAUGA INC.

	 VENTAS SSL LYNN VALLEY, INC.

	 SZR MARKHAM INC.

	 VENTAS SSL BEACON HILL, INC.

	 SZR RICHMOND HILL INC.

	 VENTAS SSL ONTARIO II, INC.

	 VENTAS GRANTOR TRUST #2

	 SZR WINDSOR INC.

	 SZR OAKVILLE INC.

	 VENTAS SSL VANCOUVER, INC.

	 VENTAS OF VANCOUVER LIMITED

	 SZR OF BURLINGTON INC.

	 VENTAS GRANTOR TRUST #1

	 VENTAS SSL, INC.

	 VENTAS SSL HOLDINGS, LLC

	 VENTAS REIT US HOLDINGS, INC.

	 SZR US UPREIT THREE, LLC

	 SZR SCOTTSDALE, LLC

					
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President and Secretary

			
	
	 SZR ACQUISITIONS, LLC

	 SZR COLUMBIA, LLC

	 SZR WILLOWBROOK, LLC

	 SZR NORWOOD, LLC

	 SZR ROCKVILLE LLC

	 SZR SAN MATEO LLC

					
			
		 	 By:
	 	SZR US Investments, Inc., its Sole Member
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President and Secretary

			
	
	 SZR LINCOLN PARK, LLC

	 SZR NORTH HILLS, LLC

	 SZR WESTLAKE VILLAGE LLC

	 SZR YORBA LINDA LLC

					
			
		 	 By:
	 	SZR US UPREIT THREE, LLC, its Sole Member
			
		 	By:	 	 /s/ T. Richard Riney

		 	Name:	 	T. Richard Riney
		 	Title:	 	Executive Vice President and Secretary

  

 A-51 

			
	 VENTAS CENTER MOB, LLC

					
			
		 	 By:
	 	Ventas MO Holdings, LLC
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President and Secretary
	
	         MAB PARENT LLC

					
			
		 	 By:
	 	Ventas MOB Holdings, LLC
			
		 	 By:
	 	 /s/ T. Richard Riney

		 	 Name:
	 	T. Richard Riney
		 	 Title:
	 	Executive Vice President

  

 A-52 

 Schedule II 
 Guarantors 
 VENTAS, INC. 
 VENTAS HEALTHCARE PROPERTIES, INC. 
 VENTAS FRAMINGHAM, LLC 
 VENTAS SUN LLC 
 VENTAS CAL SUN, LLC 
 VENTAS PROVIDENT,
LLC 
 VENTAS LP REALTY, L.L.C. 
 VENTAS TRS, LLC 
 ELDERTRUST 
 ET CAPITAL CORP. 
 ET SUB-LOPATCONG, L.L.C. 
 ET PENNSBURG FINANCE, L.L.C. 
 ET SUB-PLEASANT VIEW, L.L.C. 
 ET SUB-SMOB, L.L.C. 
 ET WAYNE FINANCE, L.L.C. 
 ET SUB-BERKSHIRE LIMITED PARTNERSHIP 
 ET BERKSHIRE, LLC 
 ET SUB-HERITAGE WOODS, L.L.C. 
 ET GENPAR, L.L.C. 
 ET SUB-LACEY I, L.L.C. 
 ET LEHIGH, LLC 
 ET SUB-PHILLIPSBURG I, L.L.C. 
 ET SANATOGA, LLC 
 ET SUB-HIGHGATE, L.P. 
 ET SUB-RITTENHOUSE LIMITED PARTNERSHIP, L.L.P. 
 ET SUB-RIVERVIEW RIDGE
LIMITED PARTNERSHIP, L.L.P. 
 ET SUB-WILLOWBROOK LIMITED PARTNERSHIP, L.L.P. 
 ET SUB-WOODBRIDGE, L.P. 
 ET SUB-LEHIGH LIMITED PARTNERSHIP 
 ET SUB-PENNSBURG MANOR LIMITED PARTNERSHIP, L.L.P. 
 ET SUB-SANATOGA LIMITED PARTNERSHIP 
 ET SUB-WAYNE I LIMITED PARTNERSHIP, L.L.P. 
 ET WAYNE FINANCE, INC.

 PSLT GP, LLC 
 PSLT OP, L.P. 
 PSLT-BLC PROPERTIES HOLDINGS, LLC 
 PSLT-ALS PROPERTIES HOLDINGS, LLC

 BROOKDALE LIVING COMMUNITIES OF ARIZONA-EM, LLC 
  

 II-1 

 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA, LLC 
 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-RC, LLC 
 BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-SAN MARCOS, LLC 

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-2960, LLC 
 BROOKDALE LIVING
COMMUNITIES OF ILLINOIS-II, LLC 
 BROOKDALE HOLDINGS, LLC 
 BROOKDALE LIVING COMMUNITIES OF MASSACHUSETTS-RB, LLC 
 BROOKDALE LIVING COMMUNITIES OF MINNESOTA, LLC 
 BROOKDALE LIVING COMMUNITIES OF NEW YORK-GB, LLC 
 BROOKDALE LIVING
COMMUNITIES OF WASHINGTON-PP, LLC 
 BLC OF CALIFORNIA-SAN MARCOS, L.P. 
 THE PONDS OF PEMBROKE LIMITED PARTNERSHIP 
 RIVER OAKS PARTNERS 
 PSLT-ALS PROPERTIES I, LLC 
 VTRLTH MAB I, LLC 
 VTRLTH
MAB II, LLC 
 VSCRE HOLDINGS, LLC 
 UNITED REHAB REALTY HOLDING,
LLC 
 BCC MARTINSBURG REALTY, LLC 
 BCC ONTARIO REALTY, LLC

 BCC MEDINA REALTY, LLC 
 BCC WASHINGTON TOWNSHIP REALTY, LLC

 EC TIMBERLIN PARC REALTY, LLC 
 EC HALCYON REALTY, LLC

 EC HAMILTON PLACE REALTY, LLC 
 EC LEBANON REALTY, LLC

 BCC ALTOONA REALTY, LLC 
 BCC ALTOONA REALTY GP, LLC

 BCC READING REALTY, LLC 
 BCC READING REALTY GP, LLC

 BCC BERWICK REALTY, LLC 
 BCC BERWICK REALTY GP, LLC

 BCC LEWISTOWN REALTY, LLC 
 BCC LEWISTOWN REALTY GP, LLC

 BCC STATE COLLEGE REALTY, LLC 
 BCC STATE COLLEGE REALTY GP,
LLC 
 SHIPPENSBURG REALTY HOLDINGS, LLC 
 BCC SHIPPENSBURG
REALTY, LLC 
 IPC (AP) HOLDING LLC 
 AL (AP) HOLDING LLC

 ALLISON PARK NOMINEE LLC 
 IPC (HCN) HOLDING LLC 
 AL (HCN) HOLDING LLC 
 BLOOMSBURG NOMINEE LLC 
 SAGAMORE HILLS NOMINEE LLC 
 LEBANON NOMINEE LLC 
 KNOXVILLE NOMINEE LLC 
 KINGSPORT NOMINEE LLC 
 HENDERSONVILLE NOMINEE LLC 
  

 A-2 

 SAXONBURG NOMINEE LLC 
 LOYALSOCK NOMINEE LLC 
 IPC (MT) HOLDING LLC 
 AL (MT)
HOLDING LLC 
 LEWISBURG NOMINEE LLC 
 LIMA NOMINEE LLC

 XENIA NOMINEE LLC 
 CHIPPEWA NOMINEE, LLC 
 DILLSBURG NOMINEE LLC 
 BCC READING REALTY, LP 
 BCC BERWICK REALTY, LP 
 BCC LEWISTOWN REALTY, LP 
 BCC STATE COLLEGE REALTY, LP 
 ALLISON PARK NOMINEE LP 
 BLOOMSBURG NOMINEE LP 
 SAGAMORE HILLS NOMINEE LP 
 LEBANON NOMINEE LP 
 KINGSPORT NOMINEE LP 
 KNOXVILLE NOMINEE LP 
 HENDERSONVILLE NOMINEE LP 
 SAXONBURG NOMINEE LP 
 LOYALSOCK NOMINEE LP 
 LEWISBURG NOMINEE LP 
 LIMA NOMINEE LP 
 XENIA NOMINEE LP 
 CHIPPEWA NOMINEE LP 
 DILLSBURG NOMINEE LP 
 VENTAS CARROLL MOB, LLC 
 VENTAS DASCO MOB HOLDINGS, LLC 
 VENTAS MO HOLDINGS, LLC 
 VENTAS MOB HOLDINGS, LLC 
 VENTAS UNIVERSITY MOB, LLC 
 VENTAS NEXCORE HOLDINGS, LLC 
 VENTAS BROADWAY MOB, LLC 
 VENTAS CASPER HOLDINGS, LLC 
 SZR US INVESTMENTS, INC. 
 VENTAS SSL HOLDINGS, INC. 
 VENTAS SSL ONTARIO III, INC. 
 SZR MISSISSAUGA INC. 
 VENTAS SSL LYNN VALLEY, INC. 
 SZR MARKHAM INC. 
 VENTAS SSL BEACON HILL, INC. 
 SZR RICHMOND HILL INC. 
 VENTAS SSL ONTARIO II, INC. 
 VENTAS GRANTOR TRUST #2 
 SZR WINDSOR INC. 
 SZR OAKVILLE INC. 
 VENTAS SSL VANCOUVER, INC. 
 VENTAS OF VANCOUVER LIMITED 
  

 A-3 

 SZR OF BURLINGTON INC. 
 VENTAS GRANTOR TRUST #1 
 VENTAS SSL, INC. 
 VENTAS SSL
HOLDINGS, LLC 
 VENTAS REIT US HOLDINGS, INC. 
 SZR US UPREIT
THREE, LLC 
 SZR SCOTTSDALE, LLC 
 SZR ACQUISITIONS, LLC

 SZR COLUMBIA, LLC 
 SZR WILLOWBROOK, LLC 
 SZR NORWOOD, LLC 
 SZR ROCKVILLE LLC 
 SZR SAN MATEO LLC 
 SZR LINCOLN PARK, LLC 
 SZR NORTH HILLS, LLC 
 SZR WESTLAKE VILLAGE LLC 
 SZR YORBA LINDA LLC 
 VENTAS CENTER MOB, LLC 
 MAB PARENT LLC 
  

 A-4 

 [FORM OF NOTE] 
 [Face of Note] 
  
 CUSIP# 92276MAU9 
 6 1/2% Senior Note due 2016 
  

					
	No.     	 		 	$             

 VENTAS REALTY, LIMITED PARTNERSHIP 
 AND 
 VENTAS CAPITAL CORPORATION 
 promises to pay to CEDE & CO. or registered assigns, the principal sum of              Dollars on
June 1, 2016. 
 Interest Payment Dates: June 1 and December 1 
 Record Dates: May 15 and November 15 
 Dated:
            , 20     
 THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (2) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE, (3) THIS GLOBAL SECURITY MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (4) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER(S). 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF 

  

 A-1 

 
THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUER(S) OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. A HOLDER MAY OBTAIN THE ISSUE
PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY SUBMITTING A REQUEST FOR SUCH INFORMATION TO THE ISSUER AT THE FOLLOWING ADDRESS: C/O VENTAS, INC., 10350 ORMSBY PARK PLACE, SUITE 300, LOUISVILLE, KENTUCKY
40223, ATTENTION: T. RICHARD RINEY, GENERAL COUNSEL 
  

 A-2 

			
	VENTAS REALTY, LIMITED PARTNERSHIP
	By:	 	Ventas, Inc., its General Partner
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	VENTAS CAPITAL CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-3 

 This is one of the Securities of the 
 series designated therein referred to 
 in the within-mentioned Indenture: 
  

					
	U.S. BANK NATIONAL ASSOCIATION,
    as Trustee
			
		 	By:	 	  

		 		 	Authorized Signatory

  

 A-4 

 [Back of Note] 
  
 6  1/2% Senior Notes due 2016 
 Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
 (1) Interest. Ventas Realty, Limited Partnership and Ventas Capital Corporation (collectively, the “Issuers”)
promise to pay interest on the principal amount of this Note at 6.500% per annum from December 1, 2008 until maturity. The Issuers will pay interest semi-annually in arrears on June 1 and December 1 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from
December 1, 2008; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be June 1, 2009. The Issuers will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; the Issuers will pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve
30-day months. 
 (2) Method of Payment. The Issuers will pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the May 15 or November 15 (each, a “Record Date”) next preceding the Interest Payment Date, even if such Notes are canceled after such record date and
on or before such Interest Payment Date, except as provided in Section 2.13 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium, if any, and interest at the office or agency of the Issuers
maintained for such purpose within or without the City and State of New York, or, at the option of the Issuers, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds will be required with respect to principal of and interest and premium, if any, on all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions
to the Issuers or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
 (3) Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying
Agent and Registrar. The Issuers may change any Paying Agent or Registrar without notice to any Holder. The Issuers or any of their Subsidiaries may act in any such capacity. 
  

 A-5 

 (4) Indenture. The Issuers issued the Notes under an indenture, dated as of
September 19, 2006 (the “Base Indenture”), as amended by the Second Supplemental Indenture, dated as of April 13, 2009 (the “Second Supplemental Indenture” and, together with the Base Indenture and as the
Base Indenture and the Second Supplemental Indenture may be further amended and supplemented from time to time, the “Indenture”), among the Issuers, the Guarantors and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for
a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are unsecured obligations of the Issuers.

 (5) Optional Redemption. (a) The Issuers may redeem the Notes at any time prior to June 1, 2011, in whole
or from time to time in part, at a redemption price equal to the sum of (i) the principal amount of the Notes being redeemed, (ii) accrued and unpaid interest thereon to the redemption date and (iii) the Make-Whole
Amount, if any (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date). 
 The Issuers may also redeem the Notes at any time on or after June 1, 2011, in whole or from time to time in part, at the redemption prices (expressed as percentages of the principal amount thereof) set forth
below, plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date), if redeemed during the 12-month
period beginning on June 1 of each of the years indicated below: 
  

				
	 Year
	  	Percentage	 
	 2011
	  	103.250	%
	 2012
	  	102.167	%
	 2013
	  	101.083	%
	 2014 and thereafter
	  	100.000	%

 (b) Notwithstanding the provisions of clause (a) of this Section 5, at
any time prior to June 1, 2009, the Issuers may redeem, on any one or more occasions, with all or a portion of the net cash proceeds of one or more Equity Offerings (within 60 days of the consummation of any such Equity Offering), up to 35% of
the aggregate principal amount of the Notes originally issued under the Second Supplemental Indenture at a redemption price (expressed as a percentage of the aggregate principal amount of Notes so redeemed) equal to 106.500%, plus accrued and unpaid
interest thereon, if any, to the redemption date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date), provided, however, that at least 65% of the
original aggregate principal amount of the Notes originally issued under the Second Supplemental Indenture remains outstanding immediately after the occurrence of each such redemption. 
  

 A-6 

 (c) Any redemption of the Notes shall be made pursuant to the provisions of Sections 3.01
through 3.07 of the Indenture. 
 (6) Mandatory Redemption. 
 The Issuers will not be required to make mandatory redemption payments with respect to the Notes. 
 (7) Repurchase at Option of Holder. 
 (a) If a Change of Control occurs, each Holder of Notes will have the right to require the Issuers to purchase some or all (in principal amounts of $1,000 or an integral multiple of $1,000) of such Holder’s Notes
pursuant to the offer described below (the “Change of Control Offer”), unless, after giving pro forma effect to the Change of Control, (i) Moody’s and S&P shall have confirmed their ratings of the Notes at Ba3
or higher and BB- or higher, respectively, (ii) the ratio of Consolidated Income Available for Debt Service to Annual Debt Service for the four consecutive fiscal quarters ended on the most recent Measurement Date prior to the date of
such Change of Control after such Change of Control is at least equal to the ratio of Consolidated Income Available for Debt Service to Annual Debt Service prior to such Change of Control and (iii) the Person formed by or surviving any
consolidation or merger (if other than the Partnership) or to which any sale, assignment, transfer, conveyance or other disposition has been made forming the basis of the Change of Control is principally engaged in a Permitted Business. 

Any Change of Control Offer will include a cash offer price of 101% of the principal amount of any Notes purchased plus accrued and
unpaid interest, if any, to the date of purchase (the “Change of Control Payment”). If a Change of Control Offer is required, within 10 Business Days following a Change of Control, the Issuers shall mail a notice to each holder
describing the Change of Control and offering to repurchase Notes on a specified date (the “Change of Control Payment Date”). The Change of Control Payment Date will be no earlier than 30 days and no later than 60 days from the date
the notice is mailed. 
 (b) If Ventas, Inc. or a Restricted Subsidiary consummates any Asset Sales or Qualified CMBS
Transactions and the aggregate amount of Excess Proceeds exceeds $35.0 million, the Issuers will commence an offer to all Holders of Notes and all holders of other Debt that is pari passu with the Notes containing provisions similar to those
set forth in Section 4.13 of the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer” or “Qualified CMBS Transaction Offer,” as the case may be) or
in connection with securitizations to purchase the maximum principal amount of Notes and other pari passu Debt that may be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount
thereof plus accrued and unpaid interest thereon, if any, to the date fixed for the 

  

 A-7 

 
closing of such offer, in accordance with the procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and other pari
passu Debt tendered pursuant to an Asset Sale Offer or Qualified CMBS Transaction Offer, as the case may be, is less than the Excess Proceeds, the Issuers may use such deficiency for any purpose not otherwise prohibited by the Indenture. If the
aggregate principal amount of Notes and other pari passu Debt surrendered by holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Debt to be purchased on a pro rata
basis. Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer or a Qualified CMBS Transaction Offer, as the case may be, from the Issuers prior to any related purchase date and may elect to have such Notes
purchased by completing the form, attached hereto, entitled “Option of Holder to Elect Purchase.” 
 (8) Notice
of Redemption. Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be
redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
 (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and the Issuers may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed
portion of any Note being redeemed in part. Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a Record Date and the corresponding
Interest Payment Date. 
 (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for
all purposes. 
 (11) Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture, the Securities
Guarantees or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then Outstanding Securities affected by such amendment or supplemental indenture voting as a single class, and
any existing Default or Event of Default or compliance with any provision of the Indenture, the Securities Guarantees or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then Outstanding Securities
affected thereby voting as a single class. Without the consent of any Holder of a Note, the Indenture, the Securities Guarantees or the Notes may be amended or supplemented to, among other things, cure any ambiguity, defect or inconsistency; to
provide for uncertificated Notes in addition to or in place of certificated Notes; to provide for the assumption of the Issuers’ obligations to Holders of Notes in the case of a merger or consolidation or sale of all or substantially all of the
Issuers’ assets; add additional Guarantees with 

  

 A-8 

 
respect to the Notes; secure the Notes; to make any other change that would provide any additional rights or benefits to the Holders of Notes or that does
not adversely affect the legal rights under the Indenture of any such Holder; or to comply with requirements of the Commission in order to effect or maintain the qualification of the applicable Indenture under the Trust Indenture Act. 
 (12) Defaults and Remedies. Events of Default with respect to the Notes include: (i) default in the payment of principal or
any premium on the Notes when due and payable; (ii) default in the payment of interest on the Notes within 30 days after the applicable due date; (iii) failure to make or consummate a Change of Control Offer following a Change of Control
when required under Section 4.15 of the Indenture; (iv) breach of any other term of the Indenture for 60 days after receipt of a notice of Default stating the Issuers are in breach; (v) certain final judgments are entered against
Ventas, Inc. and its Restricted Subsidiaries and are not paid, discharged or stayed for a period of 60 days; (vi) default under any of certain Debt of Ventas, Inc. and its Restricted Subsidiaries, which default results in the acceleration of
the maturity of such indebtedness, unless such other Debt is discharged, or the acceleration is rescinded or annulled, within 10 days after Ventas, Inc. or its Restricted Subsidiaries receives notice of the default; and (vii) certain events in
bankruptcy, insolvency or reorganization occur with respect to Ventas, Inc. or any of its Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the then Outstanding Notes may declare the entire principal amount of the Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, all Outstanding Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, the Holders of a majority in principal amount of the then Outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default in the payment of principal, premium, if any, or interest) if and so long as it determines that withholding notice is in the interest of the Holders of the Notes. Subject to certain exceptions, the
Holders of a majority in aggregate principal amount of the then Outstanding Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of principal of, premium, if any, or interest on the Notes. The Issuers are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the
Issuers are required upon becoming aware of any Default or Event of Default to deliver to the Trustee a statement specifying such Default or Event of Default. 
 (13) Trustee Dealings with Issuers. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from,
and perform services for the Issuers or their Affiliates, and may otherwise deal with the Issuers or its Affiliates as if it were not the Trustee. 
  

 A-9 

 (14) No Recourse Against Others. No director, officer, employee or stockholder of
Ventas, Inc. or any of its Subsidiaries, as such, will have any liability for any obligations of Ventas, Inc. or any of its Subsidiaries under the Notes or the Indenture based on, in respect of, or by reason of such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The foregoing waiver and release are an integral part of the consideration for the issuance of the Notes. 
 (15) Authentication. This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating
agent. 
 (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN
COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
 (17) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the
Issuers have caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or
as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  

 A-10 

 The Issuers will furnish to any Holder upon written request and without charge a copy of the Indenture.
Requests may be made to: 
 Ventas Realty, Limited Partnership 
 Ventas Capital Corporation 
 c/o Ventas, Inc. 
 10350
Ormsby Park Place, Suite 300 
 Louisville, Kentucky 40223 
 Attention: General Counsel 
  

 A-11 

 Assignment Form 
 To assign this Note, fill in the form below: 
  

			
	(I) or (we) assign and transfer this Note to:	 	  

		 	(Insert assignee’s legal name)
	
	  

	(Insert assignee’s Soc. Sec. or Tax I.D. No.)
	
	  

	
	  

	
	  

	
	  

	(Print or type assignee’s name, address and zip code)

			
		
	and irrevocably appoint	 	  

	to transfer this Note on the books of the Issuers. The agent may substitute another to act for him.

  

							
				
	Date:                     	 		 		 	
				
		 	Your Signature:	 	  
	 	
		 	(Sign exactly as your name appears on the face of this Note)	 	
				
	Signature Guarantee*:
                                        
	 		 		 	

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-12 

 Option of Holder to Elect Purchase 
 If you want to elect to have this Note purchased by the Issuers pursuant to Section 4.13 or 4.15 of the Indenture, check the appropriate box below:

  ̈  Section 4.13             ̈  Section 4.15 
 If you want to elect to have only part of the Note purchased by the Issuers
pursuant to Section 4.13 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  

			
	$             

  

									
	Date:                     	 		 		 	
		 		 	Your Signature:	 	  

		 		 	(Sign exactly as your name appears on the face of this Note)

									
					
		 		 	        Tax Identification No.:	 		 	  

					
	Signature Guarantee*:
                                        
	 		 		 		 	

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-13 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL
NOTE1 
 The following exchanges of
a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange
	  	Amount of
decrease in
Principal Amount
of this Global
Note	  	Amount of increase
in Principal
Amount of this
Global Note	  	Principal Amount
of this Global
Note following
such decrease
(or
increase)	  	Signature of
authorized
officer of Trustee
or Custodian

  

	 1
	 This schedule should be included only if the Note is issued in global form. 

  

 A-14 

 EXHIBIT B 
 [FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED BY SUBSEQUENT GUARANTORS] 
 Supplemental Indenture (this “Supplemental Indenture”), dated as of
            , 20    , among
                                     (the “Guaranteeing
Subsidiary”), Ventas Realty, Limited Partnership, a Delaware limited partnership, and Ventas Capital Corporation, a Delaware corporation (collectively, the “Issuers”), the other Guarantors (as defined in the Indenture
referred to below) and U.S. Bank National Association, as trustee under the Indenture referred to below (the “Trustee”). 
 WITNESSETH 
 WHEREAS, the Issuers have heretofore executed and
delivered to the Trustee an indenture, dated as of September 19, 2006 (the “Base Indenture”), as amended by the Second Supplemental Indenture, dated as of April 13, 2009 (the “Second Supplemental
Indenture” and, together with the Base Indenture and as the Base Indenture and the Second Supplemental Indenture may be further amended and supplemented from time to time, the “Indenture”), providing for the issuance of
6 1/2% Senior Notes due 2016 (the “Notes”); 
 WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations (as defined in the Indenture) under the Notes and the Indenture on the terms and conditions set forth herein (the
“Securities Guarantee”); and 
 WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture. 
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
 1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
 2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees as follows: 
 (a) Subject to Article 10 of the Indenture, the Guaranteeing Subsidiary hereby, jointly and severally with all other Guarantors,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the
Issuers hereunder or thereunder, that: 
 (i) the principal of, and premium, if any, and interest on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Issuers to the Holders or the
Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and 
  

 B-1 

 (ii) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. 
 Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly
and severally obligated to pay the same immediately. 
 (b) The obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment
against the Issuers, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor, other than payment in full of all Obligations under the Notes. 
 (c) The following is hereby waived: diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Issuers, any right to require a proceeding first against the Issuers, protest, notice and all demands whatsoever. 
 (d) This Securities Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and the Indenture, and the Guaranteeing Subsidiary accepts all obligations of a Guarantor under the Indenture.

 (e) If any Holder or the Trustee is required by any court or otherwise to return to the Issuers, the Guarantors, or any
custodian, trustee, liquidator or other similar official acting in relation to either the Issuers or the Guarantors, any amount paid by either to the Trustee or such Holder, this Securities Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. 
 (f) The Guaranteeing Subsidiary shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. 
 (g) As between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of
this Securities Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration 

  

 B-2 

 
of acceleration of such obligations as provided in Article 6 of the Indenture, such obligations (whether or not due and payable) shall forthwith become due
and payable by the Guarantors for the purpose of this Securities Guarantee. 
 (h) The Guarantors shall have the right to seek
contribution from any nonpaying Guarantor so long as the exercise of such right does not impair the rights of the Holders under this Securities Guarantee. 
 (i) In accordance with Section 10.02 of the Indenture, after giving effect to any maximum amount and all other contingent and fixed liabilities that are relevant under any applicable Bankruptcy Law or fraudulent
conveyance law, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under Article 10 of the Indenture,
this Securities Guarantee shall be limited to the maximum amount permissible such that the obligations of such Guarantor under this Securities Guarantee will not constitute a fraudulent transfer or conveyance. 
 3. Execution and Delivery. The Guaranteeing Subsidiary agrees that this Securities Guarantee shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Securities Guarantee. 
 4. Guaranteeing Subsidiary may Consolidate, etc., on
Certain Terms. 
 (a) The Guaranteeing Subsidiary may not sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not the Guaranteeing Subsidiary is the surviving Person) another Person, other than the Issuers or another Guarantor unless: 
 (i) immediately after giving effect to such transaction, no Default or Event of Default exists; and 
 (ii) subject to Section 10.05 of the Indenture, the Person acquiring the property in any such sale or disposition or the Person
formed by or surviving any such consolidation or merger assumes all of the obligations of the Guaranteeing Subsidiary under the Indenture and this Securities Guarantee pursuant to a supplemental indenture in form and substance reasonably
satisfactory to the Trustee. 
 (b) In case of any such consolidation, merger, sale or conveyance and upon the assumption by
the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of this Securities Guarantee endorsed upon the Notes and the due and punctual performance of all of the covenants and
conditions of the Indenture to be performed by the Guaranteeing Subsidiary, such successor Person shall succeed to and be substituted for the Guaranteeing Subsidiary with the same effect as if it had been named herein as a Guaranteeing Subsidiary.
Such successor Person thereupon may cause to be signed any or all of the Securities Guarantees to be endorsed upon all of the Notes issuable under the Indenture which theretofore shall not have been signed by the Issuers and delivered to the
Trustee. All the Securities Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture 

  

 B-3 

 
as the Securities Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture as though all of such Securities Guarantees had
been issued at the date of the execution hereof. 
 (c) Except as set forth in Articles 4 and 5 and Section 10.04 of the
Indenture, and notwithstanding clauses (a) and (b) above, nothing contained in the Indenture or in any of the Notes shall prevent any consolidation or merger of the Guaranteeing Subsidiary with or into the Issuers or another Guarantor, or
shall prevent any sale or conveyance of the property of the Guaranteeing Subsidiary as an entirety or substantially as an entirety to the Issuers or another Guarantor. 
 5. Releases. 
 (a) The Securities Guarantee of a Guaranteeing Subsidiary shall be
released, and any Person acquiring assets (including by way of merger or consolidation) or Capital Stock of a Guaranteeing Subsidiary under those circumstances specified in Section 10.05 of the Indenture shall not be required to assume the
obligations of such Guaranteeing Subsidiary. The Securities Guarantee of a Guaranteeing Subsidiary shall also be released in accordance with the provisions of Section 10.06 of the Indenture. Upon delivery by the Issuers to the Trustee of an
Officers’ Certificate and an Opinion of Counsel stating that the provisions of Section 10.05 or Section 10.06, as applicable, of the Indenture have been complied with, the Trustee shall execute any documents reasonably required in
order to evidence the release of the Guaranteeing Subsidiary from its obligations under this Securities Guarantee. 
 (b) Any
Guarantor not released from its obligations under its Securities Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of any Guarantor under the Indenture as provided in Article 10
of the Indenture. 
 6. No Recourse Against Others. No past, present or future director, officer, employee, incorporator, stockholder
or agent of the Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Issuers or the Guaranteeing Subsidiary under the Notes, this Securities Guarantee, the Indenture or this Supplemental Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. Such
waiver may not be effective to waive liabilities under the federal securities laws and it is the view of the Commission that such a waiver is against public policy. 
 7. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
  

 B-4 

 8. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. 
 9. Effect of Headings. The Section
headings herein are for convenience only and shall not affect the construction hereof. 
 10. The Trustee. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the
Issuers. 
  

 B-5 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and
attested, all as of the date first above written. 
 Dated:             ,
20     
  

			
	[GUARANTEEING SUBSIDIARY]
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 VENTAS REALTY, LIMITED PARTNERSHIP
 By:
Ventas, Inc., its General Partner

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	VENTAS CAPITAL CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	[EXISTING GUARANTORS]
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

		
	By:	 	  

		 	Authorized Signatory

  

 B-6 

 EXHIBIT C 
 [FORM OF NOTATION OF SECURITIES GUARANTEE] 
 For value received, each Guarantor (which term includes any successor Person under the Indenture hereinafter referred to) has, jointly and severally, unconditionally guaranteed to the extent set forth in, and subject to the provisions of,
an indenture dated as of September 19, 2006 (the “Base Indenture”), as amended by the Second Supplemental Indenture, dated as of April 13, 2009 (the “Second Supplemental Indenture” and, together with the
Base Indenture and as the Base Indenture and the Second Supplemental Indenture may be further amended and supplemented from time to time, the “Indenture”) among Ventas Realty, Limited Partnership and Ventas Capital Corporation
(collectively, the “Issuers”), the Guarantors named therein and U.S. Bank National Association, as trustee (the “Trustee”), providing for the issuance of 6 1/
2% Senior Notes due 2016, (a) the due and punctual payment of the principal of, premium, if any, and interest on the Notes (as defined in the Indenture), whether at
maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of all other obligations of the Issuers to the
Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due
or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Securities Guarantee and
the Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Securities Guarantee. Each Holder of a Note, by accepting the same, agrees to and shall be bound by such
provisions. 
  

			
	[Name of Guarantor(s)]
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 C-1

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