Document:

EX-10.1

 Exhibit 10.1 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement dated as of
April     , 2013 (this “Agreement”), is entered into by and between Dune Energy, Inc., a Delaware corporation (the “Company”), and
[            ] (the “Indemnitee”). 
 WHEREAS, the
Indemnitee has been asked to serve on the Board of Directors (the “Board”) of the Company and/or as an officer of the Company; 
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify persons serving as directors and/or officers of the Company to the fullest extent permitted
by applicable law so that they will serve or continue to serve as directors and/or officers of the Company free from undue concern that they will not be so indemnified; 
 WHEREAS, the Indemnitee is willing to serve and continue to serve on the Board and/or as an officer of the Company on the condition that he be so indemnified; and 

WHEREAS, to the extent permitted by law, this Agreement is a supplement to and in furtherance of the provisions of the Company’s
certificate of incorporation, as amended and/or restated from time to time (the “Certificate”), and the provisions of the Company’s bylaws, as amended and/or restated from time to time (the “Bylaws”), or
resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of the Indemnitee thereunder; 
 NOW THEREFORE, in consideration of the premises and the covenants contained herein, the Company and the Indemnitee do hereby covenant and agree as follows: 

Section 1. Services by the Indemnitee. The Indemnitee agrees to continue to serve at the request of the Company as a director
and/or officer of the Company (including, without limitation, service on one or more committees of the Board). Notwithstanding the foregoing, the Indemnitee may at any time and for any reason resign from any such position. 

Section 2. Indemnification—General. The Company shall indemnify, and advance Expenses (as hereinafter defined) to, the
Indemnitee as provided in this Agreement and to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may thereafter from time to time permit. The rights of the Indemnitee provided
under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement. 
 Section 3. Proceedings Other Than Proceedings by or in the Right of the Company. The Indemnitee shall be entitled to the rights of indemnification provided in this Section 3 if, by
reason of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or participant in any threatened, pending or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the
Company. Pursuant to this Section 3, the Company shall indemnify the Indemnitee against Expenses, judgments, penalties, fines and amounts paid in settlement (as and to the extent permitted hereunder) actually and reasonably incurred by
him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any
criminal Proceeding, if he also had no reasonable cause to believe his conduct was unlawful. 
 Section 4. Proceedings
by or in the Right of the Company. The Indemnitee shall be entitled to the rights of indemnification provided in this Section 4 if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in
any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, the Company shall indemnify the Indemnitee against Expenses actually and reasonably
incurred by him or on his behalf in connection with such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Notwithstanding the foregoing, no indemnification
against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which the Indemnitee shall have been adjudged to be liable to the Company or if applicable law prohibits such indemnification; provided,
however, that if applicable law so permits, indemnification against Expenses shall nevertheless be made by the Company in such event if and to the extent that the court in which such Proceeding shall have been brought or is pending, shall so
determine. 

 Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly
Successful. 
 (a) To the extent that the Indemnitee is, by reason of his Corporate Status, a party to and is successful, on
the merits or otherwise, in any Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. If the Indemnitee is not wholly successful in defense of
any Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by him
or on his behalf in connection with each such claim, issue or matter as to which the Indemnitee is successful, on the merits or otherwise. For purposes of this Section 5(a), the term “successful, on the merits or otherwise,”
shall include, but shall not be limited to, (i) the termination of any claim, issue or matter in a Proceeding by withdrawal or dismissal, with or without prejudice, (ii) termination of any claim, issue or matter in a Proceeding by any
other means without any express finding of liability or guilt against the Indemnitee, with or without prejudice, (iii) the expiration of 120 days after the making of a claim or threat of a Proceeding without the institution of the same and
without any promise or payment made to induce a settlement or (iv) the settlement of any claim, issue or matter in a Proceeding pursuant to which the Indemnitee pays less than $250,000. The provisions of this Section 5(a) are
subject to Section 5(b) below. 
 (b) In no event shall the Indemnitee be entitled to indemnification under
Section 5(a) above with respect to a claim, issue or matter to the extent (i) applicable law prohibits such indemnification, or (ii) an admission is made by the Indemnitee in writing to the Company or in such Proceeding or a
final, nonappealable determination is made in such Proceeding that the standard of conduct required for indemnification under this Agreement has not been met with respect to such claim, issue or matter. 

Section 6. Indemnification for Expenses as a Witness. Notwithstanding any provisions herein to the contrary, to the extent
that the Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by or on behalf of the Indemnitee in connection therewith.

 Section 7. Advancement of Expenses. The Company shall advance all reasonable Expenses incurred by or on behalf of
the Indemnitee in connection with any Proceeding within 10 days after the receipt by the Company of a statement or statements from the Indemnitee requesting such advance or advances from time to time, whether prior to or after the final disposition
of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by or on behalf of the Indemnitee. The Indemnitee hereby expressly undertakes to repay such amounts advanced only if, and to the extent that, it shall
ultimately be determined by a final, non-appealable adjudication or arbitration decision that the Indemnitee is not entitled to be indemnified against such Expenses. All amounts advanced to the Indemnitee by the Company pursuant to this
Section 7 shall be without interest. The Company shall make all advances pursuant to this Section 7 without regard to the financial ability of the Indemnitee to make repayment, without bond or other security and without
regard to the prospect of whether the Indemnitee may ultimately be found to be entitled to indemnification under the provisions of this Agreement. Any required reimbursement of Expenses by the Indemnitee shall be made by the Indemnitee to the
Company within 10 days following the entry of the final, non-appealable adjudication or arbitration decision pursuant to which it is determined that the Indemnitee is not entitled to be indemnified against such Expenses. 

Section 8. Procedure for Determination of Entitlement to Indemnification. 

(a) To obtain indemnification under this Agreement, the Indemnitee shall submit to the Company a written request therefor, along with such
documentation and information as is reasonably available to the Indemnitee and reasonably necessary to determine whether and to what extent the Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Board in writing that the Indemnitee has requested indemnification. 
 (b) Upon
written request by the Indemnitee for indemnification pursuant to the first sentence of Section 8(a) hereof, a determination, if required by applicable law, with respect to the Indemnitee’s entitlement thereto shall be made in the
specific case: (i) by the Board by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined); or (ii) if a quorum of the Board consisting of Disinterested Directors is not obtainable or, even if obtainable,
such quorum of Disinterested Directors so directs, by Independent Counsel (as hereinafter defined), as selected pursuant to Section 8(d), in a written opinion to the Board (which opinion may be a “more likely than not”
opinion), a copy of which shall be delivered to the Indemnitee. If it is so determined that the 

 
Indemnitee is entitled to indemnification, the Company shall make payment to the Indemnitee within 10 days after such determination. The Indemnitee shall cooperate with the Person or Persons
making such determination with respect to the Indemnitee’s entitlement to indemnification, including providing to such Person or Persons upon reasonable advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to the Indemnitee and reasonably necessary to such determination. Subject to the provisions of Section 10 hereof, any costs or expenses (including reasonable attorneys’
fees and disbursements) incurred by the Indemnitee in so cooperating with the Person or Persons making such determination shall be borne by the Company, and the Company hereby agrees to indemnify and hold the Indemnitee harmless therefrom.

 (c) Notwithstanding the foregoing, if a Change of Control has occurred, the Indemnitee may require a determination with
respect to the Indemnitee’s entitlement to indemnification to be made by Independent Counsel, as selected pursuant to Section 8(d), in a written opinion to the Board (which opinion may be a “more likely than not” opinion),
a copy of which shall be delivered to the Indemnitee. 
 (d) In the event the determination of entitlement to indemnification is
to be made by Independent Counsel pursuant to Section 8(b) or (c) hereof, the Independent Counsel shall be selected as provided in this Section 8(d). If a Change of Control shall not have occurred, the Independent
Counsel shall be selected by the Board (including a vote of a majority of the Disinterested Directors if obtainable), and the Company shall give written notice to the Indemnitee advising him of the identity of the Independent Counsel so selected. If
a Change of Control shall have occurred, the Independent Counsel shall be selected by the Indemnitee (unless the Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and approved by
the Company (which approval shall not be unreasonably withheld). If (i) an Independent Counsel is to make the determination of entitlement pursuant to Section 8(b) or (c) hereof, and (ii) within 20 days after
submission by the Indemnitee of a written request for indemnification pursuant to Section 8(a) hereof, no Independent Counsel shall have been selected, either the Company or the Indemnitee may petition the appropriate court of the State
(as hereafter defined) or other court of competent jurisdiction for the appointment as Independent Counsel of a Person selected by such court or by such other Person as such court shall designate. The Company shall pay any and all reasonable fees
and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 8(b) or (c) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures
of this Section 8(d), regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 10(a)(iv) of this Agreement,
Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 

Section 9. Presumptions and Effect of Certain Proceedings; Construction of Certain Phrases. 

(a) In making a determination with respect to whether the Indemnitee is entitled to indemnification hereunder, the Person making such
determination shall presume that the Indemnitee is entitled to indemnification under this Agreement if the Indemnitee has submitted a request for indemnification in accordance with Section 8(a) of this Agreement, and anyone seeking to
overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 
 (b)
Subject to the terms of Section 16 below, the termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of the Indemnitee to indemnification or create a presumption that the Indemnitee did not act in good faith and in a manner which he reasonably believed
to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was unlawful. 

(c) For purposes of any determination of the Indemnitee’s entitlement to indemnification under this Agreement or otherwise, the
Indemnitee shall be deemed to have acted in good faith and in a manner he reasonably believe to be in or not opposed to the best interests of the Company, and, with respect to a criminal Proceeding, to have also had no reasonable cause to believe
his conduct was unlawful, if the Indemnitee’s action is based on the records or books of account of the Company or another enterprise, including financial statements, or on information supplied to the Indemnitee by the officers of the Company
or another enterprise in the course of their duties, or on the advice of legal or financial counsel for the Company or the Board (or any committee thereof) or for another enterprise or its board of directors (or any committee thereof), or on
information or records given or reports made by 

 
an independent certified public accountant or by an appraiser or other expert selected by the Company or the Board (or any committee thereof) or by another enterprise or its board of directors
(or any committee thereof). For purposes of this Section 9(c), the term “another enterprise” means any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise
of which the Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent. The provisions of this Section 9(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in
which the Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or actions, or failure to act, of any other director, trustee, partner, managing member,
fiduciary, officer, agent or employee of the Company shall not be imputed to the Indemnitee for purposes of determining the right to indemnification under this Agreement. Regardless of whether the foregoing provisions of this
Section 9(c) are satisfied, it shall in any event be presumed that the Indemnitee has acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to a
criminal Proceeding, that he also had no reasonable cause to believe his conduct was unlawful. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 

(d) For purposes of this Agreement, references to “fines” shall include any excise taxes assessed on the Indemnitee with
respect to an employee benefit plan; references to “serving at the request of the Company” shall include, but shall not be limited to, any service as a director, officer, employee or agent of the Company which imposes duties on, or
involves services by, the Indemnitee with respect to an employee benefit plan, its participants or its beneficiaries; and if the Indemnitee has acted in good faith and in a manner he reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan, he shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as used in this Agreement. The provisions of this Section 9(d) shall not be deemed to be
exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement. 

Section 10. Remedies of the Indemnitee. 
 (a) In the event that (i) a determination is made pursuant to Section 8 of this Agreement that the Indemnitee is not entitled to indemnification under this Agreement,
(ii) advancement of Expenses is not timely made pursuant to Section 7 of this Agreement, (iii) the determination of entitlement to indemnification is to be made by the Board pursuant to Section 8(b) of this
Agreement and such determination shall not have been made and delivered to the Indemnitee in writing within twenty (20) days after receipt by the Company of the request for indemnification, (iv) the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 8(b) or (c) of this Agreement and such determination shall not have been made in a written opinion to the Board and a copy delivered to the Indemnitee
within forty-five (45) days after receipt by the Company of the request for indemnification, (v) payment of indemnification is not made pursuant to Section 6 of this Agreement within 10 days after receipt by the Company of a
written request therefor or (vi) payment of indemnification is not made within 10 days after a determination has been made that the Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to
Section 8 or 9 of this Agreement, the Indemnitee shall be entitled to an adjudication in an appropriate court of the State of his entitlement to such indemnification or advancement of Expenses. Alternatively, the Indemnitee, at
his sole option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the American Arbitration Association. The Indemnitee shall commence such Proceeding seeking an adjudication or an award in arbitration
within 180 days following the date on which the Indemnitee first has the right to commence such Proceeding pursuant to this Section 10(a); provided, however, that the foregoing clause shall not apply in respect of a
Proceeding brought by the Indemnitee to enforce his rights under Section 5 of this Agreement. 
 (b) In the event
that a determination is made pursuant to Section 8 of this Agreement that the Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 10 shall be conducted in
all respects as a de novo trial or a de novo arbitration (as applicable) on the merits, and the Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to
this Section 10, the Company shall have the burden of proving that the Indemnitee is not entitled to indemnification, and the Company shall be precluded from referring to or offering into evidence a determination made pursuant to
Section 8 of this Agreement that is adverse to the Indemnitee’s right to indemnification. If the Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 10, the Indemnitee shall not be required
to reimburse the Company for any advances pursuant to Section 7 until a final determination is made with respect to the Indemnitee’s entitlement to indemnification (as to which rights of appeal have been exhausted or lapsed).

 (c) If a determination is made or deemed to have been made pursuant to Section 8
or 9 of this Agreement that the Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 10, absent (i) a
misstatement by the Indemnitee of a material fact, or an omission by the Indemnitee of a material fact necessary to make the Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law. 
 (d) The Company shall be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 10 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the
Company is bound by all of the provisions of this Agreement. 
 (e) In the event that the Indemnitee, pursuant to this
Section 10, seeks a judicial adjudication or an award in arbitration to enforce his rights under, or to recover damages for breach of, this Agreement, the Indemnitee shall be entitled to recover from the Company, and shall be indemnified
by the Company against, any and all Expenses actually and reasonably incurred by him in such judicial adjudication or arbitration, unless the court or arbitrator determines that each of the Indemnitee’s claims in such Proceeding were made in
bad faith or were frivolous. In the event that a Proceeding is commenced by or in the right of the Company against the Indemnitee to enforce or interpret any of the terms of this Agreement, the Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company against, any and all Expenses actually and reasonably incurred by him in such Proceeding (including with respect to any counter-claims or cross-claims made by the Indemnitee against the Company in
such Proceeding), unless the court or arbitrator determines that each of the Indemnitee’s material defenses in such Proceeding were made in bad faith or were frivolous. 
 (f) Any judicial adjudication or arbitration determined under this Section 10 shall be final and binding on the parties. 

Section 11. Defense of Certain Proceedings. In the event the Company shall be obligated under this Agreement to pay the
Expenses of any Proceeding against the Indemnitee in which the Company is a co-defendant with the Indemnitee, the Company shall be entitled to assume the defense of such Proceeding, with counsel approved by the Indemnitee, which approval shall not
be unreasonably withheld, upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Indemnitee
shall nevertheless be entitled to employ or continue to employ his own counsel in such Proceeding. Employment of such counsel by the Indemnitee shall be at the cost and expense of the Company unless and until the Company shall have demonstrated to
the reasonable satisfaction of the Indemnitee and the Indemnitee’s counsel that there is complete identity of issues and defenses and no conflict of interest between the Company and the Indemnitee in such Proceeding, after which time further
employment of such counsel by the Indemnitee shall be at the cost and expense of the Indemnitee. In all events, if the Company shall not, in fact, have timely employed counsel to assume the defense of such Proceeding, then the fees and Expenses of
the Indemnitee’s counsel shall be at the cost and expense of the Company. 
 Section 12. Exception to Right of
Indemnification or Advancement of Expenses. Notwithstanding any other provision of this Agreement, the Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to any Proceeding, or any
claim therein, brought or made by the Indemnitee against: 
 (a) the Company, except for (i) any claim or Proceeding in
respect of this Agreement and/or the Indemnitee’s rights hereunder, (ii) any claim or Proceeding to establish or enforce a right to indemnification under any statute or law and (iii) any counter-claim or cross-claim brought or made by
him against the Company in any Proceeding brought by or in the right of the Company against him; or 
 (b) any other Person,
except for Proceedings or claims approved by the Board. 

 Section 13. Contribution.  

(a) If, with respect to any Proceeding, the indemnification provided for in this Agreement is held by a court of competent jurisdiction to
be unavailable to the Indemnitee for any reason other than that the Indemnitee did not act in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to a criminal Proceeding,
that the Indemnitee had reasonable cause to believe his conduct was unlawful, the Company shall contribute to the amount of Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee or on
his behalf in connection with such Proceeding or any claim, issue or matter therein in such proportion as is appropriate to reflect the relative benefits received by the Indemnitee and the relative fault of the Indemnitee versus the other defendants
or participants in connection with the action or inaction which resulted in such Expenses, judgments, penalties, fines and amounts paid in settlement, as well as any other relevant equitable considerations. 

(b) The Company and the Indemnitee agree that it would not be just and equitable if contribution pursuant to this Section 13
were determined by pro rata or per capita allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 13(a) above. 

(c) No Person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act of 1933, as
amended) shall be entitled to contribution from any Person who was not found guilty of such fraudulent misrepresentation. 

Section 14. Officer and Director Liability Insurance. 

(a) The Company shall use all commercially reasonable efforts to obtain and maintain in effect during the entire period for which the
Company is obligated to indemnify the Indemnitee under this Agreement, one or more policies of insurance with reputable insurance companies to provide the directors and officers of the Company with coverage for losses from wrongful acts and
omissions and to ensure the Company’s performance of its indemnification obligations under this Agreement. In all such insurance policies, the Indemnitee shall be named as an insured in such a manner as to provide the Indemnitee with the same
rights and benefits as are accorded to the most favorably insured of the Company’s directors and officers. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in
good faith that the Indemnitee is covered by such insurance maintained by a subsidiary or parent of the Company. 
 (b) To the
extent that the Company maintains an insurance policy or policies providing liability insurance for directors or officers of any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other
enterprise which the Indemnitee serves at the request of the Company, the Indemnitee shall be named as an insured under and shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for the most favorably insured director or officer under such policy or policies. 
 (c) In the event that the Company
is a named insured under any policy or policies of insurance referenced in either Section 14(a) or (b) above, the Company hereby covenants and agrees that it will not settle any claims or Proceedings that may be covered by
such policy or policies of insurance and in which the Indemnitee has or may incur Expenses, judgments, penalties, fines or amounts paid in settlement without the prior written consent of the Indemnitee. 

Section 15. Security. Upon reasonable request by the Indemnitee, the Company shall provide security to the Indemnitee for the
Company’s obligations hereunder through an irrevocable bank letter of credit, funded trust or other similar collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior written consent of the
Indemnitee, which consent may be granted or withheld at the Indemnitee’s sole and absolute discretion. 
 Section 16.
Settlement of Claims. The Company shall not be liable to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s written consent, which consent shall not be
unreasonably withheld. 
 Section 17. Duration of Agreement. This Agreement shall be unaffected by the termination
of the Corporate Status of the Indemnitee and shall continue for so long as the Indemnitee may have any liability or potential liability by virtue of his Corporate Status, including, without limitation, the final termination of all pending
Proceedings in respect of which the Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of 

 
any Proceeding commenced by the Indemnitee pursuant to Section 10 of this Agreement relating thereto, regardless of whether he is acting or serving in such capacity at the time any
liability or Expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives. 

Section 18. Remedies of the Company. The Company hereby covenants and agrees to submit any and all disputes relating to this
Agreement that the parties are unable to resolve between themselves to binding arbitration pursuant to the rules of the American Arbitration Association and waives all rights to judicial adjudication of any matter or dispute relating to this
Agreement except where judicial adjudication is requested or required by the Indemnitee. 
 Section 19. Covenant Not to
Sue, Limitation of Actions and Release of Claims. No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company (or any of its subsidiaries) against the Indemnitee, his spouse, heirs, executors,
personal representatives or administrators after the expiration of two (2) years from the date on which the Corporate Status of the Indemnitee is terminated (for any reason), and any claim or cause of action of the Company (or any of its
subsidiaries) shall be extinguished and deemed released unless asserted by filing of a legal action within such two-year period; provided, however, that the foregoing shall not apply to any action or cause of action brought or asserted
by the Company pursuant to or in respect of this Agreement and shall not constitute a waiver or release of any of the Company’s rights under this Agreement. 
 Section 20. Limitation of Liability. Notwithstanding any other provision of this Agreement, neither party shall have any liability to the other for, and neither party shall be entitled to
recover from the other, any consequential, special, punitive, multiple or exemplary damages as a result of a breach of this Agreement. 
 Section 21. Subrogation. In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who
shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

Section 22. No Multiple Recovery. The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that the Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 

Section 23. Definitions. For purposes of this Agreement: 

(a) “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or
under common control with such Person. For purposes hereof, “control” (including, with correlative meaning, the terms “controlling”, “controlled by” and “under common control with”) means the possession,
directly or indirectly, of the power to direct or cause the direction of management and policies of such Person, by contract or otherwise. 
 (b) “Change of Control” shall mean a change in control of the Company occurring after the date of this Agreement of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Exchange Act, regardless of whether the Company is then subject to such reporting requirement. Without
limiting the foregoing, such a Change of Control shall be deemed to have occurred if, after the date of this Agreement, (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the
“beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities
entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board in office immediately prior to such person attaining such percentage interest; (ii) the Company is a party to
a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which members of the Board in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter;
(iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Company’s shareholders
was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board; or (iv) approval by the shareholders of
the Company of a liquidation or dissolution of the Company. 

 (c) “Company” means Dune Energy, Inc., a Delaware corporation. 

(d) “Corporate Status” describes the status of an individual who is or was an officer or director of the Company, or is
or was serving at the request of the Company as an officer, director, employee or agent of another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that is an Affiliate of the
Company. 
 (e) “Disinterested Director” means a director of the Company who is not and was not a party to, or
otherwise involved in, the Proceeding for which indemnification is sought by the Indemnitee. 
 (f) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 (g) “Expenses” shall include all
reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating or being or preparing to be a witness in a Proceeding. 

(h) “Independent Counsel” means a law firm or a member of a law firm that is experienced in matters of corporation law
and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or the Indemnitee in any matter material to either such party or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any Person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or the Indemnitee in an action to determine the Indemnitee’s rights under this Agreement. 

(i) “Person” means a natural person, firm, partnership, joint venture, association, corporation, company, limited
liability company, trust, business trust, estate or other entity. 
 (j) “Proceeding” includes any action,
suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal, administrative or investigative. 

(k) “State” means the State of Delaware. 
 Section 24. Non-Exclusivity. The Indemnitee’s rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which the Indemnitee may at any time be entitled under applicable law, the Certificate, the Bylaws, any agreement, a vote of stockholders, a resolution of directors or otherwise. 

Section 25. Remedies Not Exclusive. No right or remedy herein conferred upon the Indemnitee is intended to be exclusive of
any other right or remedy, and every other right or remedy shall be cumulative of and in addition to the rights and remedies given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or
remedy of the Indemnitee hereunder or otherwise shall not be deemed an election of remedies on the part of the Indemnitee and shall not prevent the concurrent assertion or employment of any other right or remedy by the Indemnitee. 

Section 26. Changes in Law. In the event that a change in applicable law after the date of this Agreement, whether by
statute, rule or judicial decision, expands or otherwise increases the right or ability of a Delaware corporation to indemnify a member of its board of directors or an officer, the Indemnitee shall, by this Agreement, enjoy the greater benefits so
afforded by such change. In the event that a change in applicable law after the date of this Agreement, whether by statute, rule or judicial decision, narrows or otherwise reduces the right or ability of a Delaware corporation to indemnify a member
of its board of directors or an officer, such change shall have no effect on this Agreement or any of the Indemnitee’s rights hereunder, except and only to the extent required by law. 

 Section 27. Interpretation of Agreement. The Company and the Indemnitee
acknowledge and agree that it is their intention that this Agreement be interpreted and enforced so as to provide indemnification to the Indemnitee to the fullest extent now or hereafter permitted by law. 

Section 28. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give maximum effect to the
intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision or provisions held invalid, illegal or unenforceable. 

Section 29. Governing Law; Specific Performance.  
 (a) This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware. 
 (b) The Company acknowledges that the Indemnitee may, as a result of the Company’s breach of its covenants and obligations under this Agreement, sustain immediate and long-term substantial and
irreparable injury and damage which cannot be reasonably or adequately compensated by damages at law. Consequently, the Company agrees that the Indemnitee shall be entitled, in the event of the Company’s breach or threatened breach of its
covenants and obligations hereunder, to obtain equitable relief from a court of competent jurisdiction, including enforcement of each provision of this Agreement by specific performance and/or temporary, preliminary and/or permanent injunctions
enforcing any of the Indemnitee’s rights, requiring performance by the Company, or enjoining any breach by the Company, all without proof of any actual damages that have been or may be caused to the Indemnitee by such breach or threatened
breach and without the posting of bond or other security in connection therewith. The Company waives the claim or defense therein that the Indemnitee has an adequate remedy at law, and the Company shall not allege or otherwise assert the legal
position that any such remedy at law exists. The Company agrees and acknowledges that: (i) the terms of this Section 29(b) are fair, reasonable and necessary to protect the legitimate interests of the Indemnitee; (ii) this
waiver is a material inducement to the Indemnitee to enter into the transactions contemplated hereby; and (iii) the Indemnitee relied upon this waiver in entering into this Agreement and will continue to rely on this waiver in its future
dealings with the Company. The Company represents and warrants that it has reviewed this provision with its legal counsel, and that it has knowingly and voluntarily waived its rights referenced in this Section 29 following consultation
with such legal counsel. 
 Section 30. Nondisclosure of Payments. Except as expressly required by Federal
securities laws, the Company shall not disclose any payments under this Agreement without the prior written consent of the Indemnitee. Any payments to the Indemnitee that must be disclosed shall, unless otherwise required by law, be described only
in the Company proxy or information statements relating to special and/or annual meetings of the Company’s shareholders, and the Company shall afford the Indemnitee a reasonable opportunity to review all such disclosures and, if requested by
the Indemnitee, to explain in such statement any mitigating circumstances regarding the events reported. 
 Section 31.
Notice by the Indemnitee. The Indemnitee agrees to promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which
may be subject to indemnification or advancement of Expenses covered hereunder. 
 Section 32. Notices. All notices,
requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and received for by the party to whom said notice or other communication shall have been directed, or
(b) mailed by U.S. certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: (i) If to the Company: Dune Energy, Inc., Two Shell Plaza, 777 Walker Street, Suite 2300, Houston,
Texas 77002, Attention: General Counsel; and (ii) if to any other party hereto, including the Indemnitee, to the address of such party set forth on the signature page hereof; or to such other address as may have been furnished by any party to
the other(s), in accordance with this Section 32. 

 Section 33. Modification and Waiver. No supplement, modification or amendment of
this Agreement or any provision hereof shall limit or restrict in any way any right of the Indemnitee under this Agreement with respect to any action taken or omitted by the Indemnitee in his Corporate Status prior to such supplement, modification
or amendment. No supplement, modification or amendment of this Agreement or any provision hereof shall be binding unless executed in writing by both of the Company and the Indemnitee. No waiver of any provision of this Agreement shall be deemed or
shall constitute a wavier of any other provision hereof (regardless of whether similar) nor shall such waiver constitute a continuing waiver. 
 Section 34. Headings. The headings of the Sections or paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect
the construction thereof. 
 Section 35. Gender. Use of the masculine pronoun in this Agreement shall be deemed to
include usage of the feminine pronoun where appropriate. 
 Section 36. Identical Counterparts. This Agreement may
be executed in one or more counterparts (whether by original, photocopy or facsimile signature), each of which shall for all purposes be deemed to be an original, but all of which together shall constitute one and the same Agreement. Only one such
counterpart executed by the party against whom enforcement is sought must be produced to evidence the existence of this Agreement. 
 (Signature page follows, and the remainder of this page is intentionally blank.) 

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

			
	 Company:
  

DUNE ENERGY, INC.

		
	 By:
	 	 
		 	Name: James A. Watt
		 	Title: President and Chief Executive Officer

  

			
	Indemnitee:
		
		 	 
		 	Name:
		 	 Address:Asset Purchase Agreement

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 This Asset Purchase Agreement (the
“Agreement”) is made and entered into on April 23, 2013 (the “Effective Date”), by and among BHC PROPERTIES, LLC, an Arkansas limited liability company (“BHC”), WHC PROPERTIES,
LLC, an Arkansas limited liability company (“WHC”), SHC PROPERTIES, LLC, an Arkansas limited liability company (“SHC”), NHC PROPERTIES, LLC, an Arkansas limited liability company
(“NHC”), MHC PROPERTIES, LLC, an Arkansas limited liability company (“MHC”) and JHC PROPERTIES, LLC, an Arkansas limited liability company (“JHC”; JHC, BHC, WHC, SHC, NHC and MHC, are
each individually referred to as a “Seller” and, collectively, as the “Sellers”), and CHP PARTNERS, LP, a Delaware limited partnership, and its assigns in accordance with Section 9.01 hereof
(“Purchaser”). 
 RECITALS 

WHEREAS, each of the six (6) long term care facilities identified on Exhibit A attached hereto (each, a
“Facility” and, collectively, the “Facilities”) is owned by a Seller, and leased to one of six (6) separate tenants (each, an “Existing Operator” and, collectively, the “Existing
Operators”) pursuant to six (6) separate Lease Agreements (each a “Lease” and, collectively, the “Leases”); 
 WHEREAS, Sellers desire to sell the Assets to Purchaser, and Purchaser desires to purchase such Assets from Sellers, in each case, subject to the Assumed Liabilities, upon the terms and conditions
set forth in this Agreement; 
 WHEREAS, in connection with the sale and purchase of the Assets hereunder, at Closing,
the Leases are terminating and an Affiliate or Affiliates of New Operator Parent (as defined below) are entering into a leases with Purchaser or its Assignees (the “Master Leases”) with respect to the Facilities and, in turn, each
Existing Operator is entering into a Sublease (with respect to such Existing Operator’s applicable Facility) with such Affiliate of New Operator Parent (each, a “Sublease” and, collectively, the “Subleases”);

 WHEREAS, in connection with the sale and purchase of the Assets hereunder, at Closing, Sellers, the Existing
Operators, Arkansas SNF Operations Acquisition III, LLC, a Delaware limited liability company (“New Operator Parent”), Arkansas SNF Operations Acquisition, LLC, a Delaware limited liability company, and certain Affiliates of New
Operator Parent (each, a “New Operator” and, collectively, the “New Operators”) desire to enter into that certain Operations Transfer Agreement and consummate the transactions set forth therein; and 

WHEREAS, that certain letter agreement, dated February 1, 2013, by and among the Existing Operators and an Affiliate of New
Operator Parent (the “Letter of Intent”), shall remain in full force and effect in accordance with its terms, subject to Section 9.13 hereof. 

 NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants set
forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sellers and Purchaser hereby agree as follows: 
 AGREEMENT 
 ARTICLE I 

DEFINITIONS 
 1.01 Definitions. As used in this Agreement, the following terms have the meanings specified in this Section 1.01: 
 “Affiliate” means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control
with such Person, and for purposes of this definition, the term “control” means the direct or indirect power to cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by
contract, or otherwise. 
 “Agreement” means this Asset Purchase Agreement and all Exhibits and Schedules
attached to this Agreement, which are hereby incorporated into and made a part of this Agreement as if set forth in full herein; provided, however, that in no event shall “Agreement” include the OTA. 

“Assets” means the assets described on Exhibit B attached hereto. 

“Assumed Liabilities” means the liabilities described on Exhibit C attached hereto. 

“Closing” means the consummation of the transactions contemplated by this Agreement. 

“Closing Date” means the date on which the Closing occurs. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Cost Reports” means Medicare, Medicaid and other cost reports pertaining to any Facility. 

“Deposit” means the earnest money deposit of $5,000,000 which Purchaser shall deliver to Escrow Agent within one
(1) business day following the Effective Date. 
 “Due Diligence Review Period” means that period of time
commencing on the Effective Date through and including May 17, 2013, during which time Purchaser shall review and/or perform all inspections and studies of the Assets and Facilities. 

“Environmental Laws” means all currently existing federal, state, and local statutes, ordinances, rules, orders,
regulations, remediation standards, and other provisions having the force of law for the protection of the environment, including the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the federal
Resource Conservation and Recovery Act, as amended, and related state statutes. 
 “Equipment” means all
furniture, fixtures, equipment, machinery and other personalty owned by each Seller and now or hereafter attached to, appurtenant to, or used solely in connection with the operation of, the Facilities. 

  
 2 

 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended. 
 “Escrow Agent” means Fidelity National Title, 1 East Washington Street, Suite 450, Phoenix, Arizona
85003, in conjunction with Commonwealth Land Title Insurance Company, located at 1050 Wilshire Drive, Suite 310, Troy, MI 48084. 
 “Escrow Agreement” means that certain Escrow Agreement of even date herewith by and among Sellers, Purchaser and Escrow Agent relating to the Deposit. 

“Excluded Assets” means those assets described on Schedule 1.01. 

“Excluded Records” means: (a) any records that, if provided to Purchaser, would violate any applicable Law,
(b) any records relating to Sellers’ efforts to market the Facilities for sale, including any correspondence or other communications with other bidders, and (c) any records, the disclosure of which would: (i) jeopardize any legal
privilege available to a Seller or any of its Affiliates relating to such records, or (ii) cause a Seller or any of its Affiliates to breach a confidentiality obligation by which such Seller is bound. 

“Governmental Authority” means any nation or government, any state, local or other political subdivision thereof, any
central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory, or administrative functions of or pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the foregoing. 
 “Hazardous Materials”
means any hazardous or toxic substance or waste or any contaminant or pollutant regulated under Environmental Laws. 

“HUD Loans” means the three (3) HUD loans which currently encumber: (a) Batesville Healthcare Center,
(b) Broadway Healthcare Center and (c) Searcy Healthcare Center. 
 “Improvements” means the
buildings, structures, other improvements, and fixtures located on the Land. 
 “Intangible Assets” means all
drawings, surveys, environmental and soil reports, telephone and facsimile numbers listing in directories, customer and supplier lists and files, guest lists, credit records, labels, security codes, all records and sales and other customer data, and
any unexpired guaranties or warranties relating to the Facilities, in each case, to the extent not transferred under the OTA. 

“Land” means those certain tracts or parcels of land described on Exhibit B-1, together with all
easements, hereditaments, rights of way, privileges, and rights appurtenant thereto. 
 “Law” or
“Laws” means all foreign, federal, state, county and local laws, statutes, rules, regulations, codes, ordinances, orders, judgments, writs, injunctions, decisions or demand letters issued, entered or promulgated by any Governmental
Authority, including common law. 

  
 3 

 “OTA” mean the Operations Transfer Agreement to be entered into by and
among Sellers, the Existing Operators, New Operator Parent, Arkansas SNF Operations Acquisition, LLC, and New Operators, at Closing, the form of which is attached hereto as Exhibit D. 

“OTA Assets” has the meaning ascribed to such term in the OTA. 

“Permitted Exceptions” means only the following liens, encumbrances, covenants, restrictions, title defects, and
limitations: 
 (a) Liens for Taxes in dispute or not yet payable; 

(b) The rights, if any, of Facility residents and other parties in possession of one or more rooms at any Facility,
provided, however, that such rights are limited to normal occupancy rights pursuant to the standard occupancy agreements in effect pertaining to the relevant Facility; 

(c) Easements, restrictions, servitudes and the like to which Purchaser does not timely object in accordance with
Section 2.08 hereof; 
 (d) Transfer and assignment restrictions imposed as a matter of Law or by contract;

 (e) Purchase money security interests incurred in the ordinary course of business and disclosed in writing to
Purchaser; 
 (f) Matters of record affecting title and appearing in the Title Commitments; and 

(g) Title exceptions which are not timely objected to by Purchaser following receipt of the Title Commitments and Surveys
in accordance with Section 2.08 hereof. 
 “Person” means an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or Governmental Authority. 
 “Plans and Specifications” means any plans and specifications, blue prints, architectural plans, engineering diagrams and similar items which specifically relate to the Real Property.

 “Purchase Price” means the sum of $56,415,000, to be paid by Purchaser to Sellers pursuant to the provisions
of Section 2.04. 
 “Records” means all books and records, in whatever medium and wherever located, owned
by Sellers exclusively for (or in connection with) the ownership of the Assets or the operations of one or more of the Facilities, including, to the extent such exists and is in the possession of a Seller, all Cost Reports (other than those relating
to periods completed prior to the Closing Date), contracts, agreements, correspondence, accounting records, legal records, employment and employee records, medical and clinical records, quality of care records, management records, resident and
family complaints, records that would indicate payment for care provided to residents, and corporate and internal records, but not the Excluded Records. 

  
 4 

 “Retained Liabilities” means all liabilities of Sellers other than the
Assumed Liabilities. 
 “Seller’s Knowledge” means the actual knowledge of V. James Santarsiero, Jeanne
Butterworth and/or Julia Clark, without independent verification or investigation. 
 “Surveys” means surveys
performed by a surveyor with respect to the Land. 
 “Taxes” means all taxes, however denominated, including
any interest, penalties, or additions to tax that may become payable in respect thereof, imposed by any Governmental Authority, whether arising before, on, or after the Closing Date. 

“Title Commitments” means title commitments with respect to the Land. 

ARTICLE II 

PURCHASE AND SALE; CONSIDERATION; DUE DILIGENCE REVIEW PERIOD 

2.01 Transfer of Assets. At the Closing, and upon the terms and conditions herein set forth, Sellers will sell, assign, transfer,
and convey to Purchaser the Assets (but not the Excluded Assets). 
 2.02 Assumption of Liabilities. At the Closing, and
upon the terms and conditions herein set forth, Purchaser will assume, and thereafter pay, perform, and discharge when due, the Assumed Liabilities and shall indemnify, protect and hold Sellers harmless from and against any claims or losses against
Sellers which arise from or out of the Assumed Liabilities. Sellers shall remain fully liable for the payment, performance and discharge of all Retained Liabilities and shall indemnify, protect and hold Purchaser harmless from and against any
claims or losses against Purchaser which arise from or out of the Retained Liabilities. 
 2.03 Purchase Price. The
Purchase Price for the Assets is $56,415,000, which shall be payable at Closing, subject to Section 2.05 hereof. Notwithstanding their inclusion in the Purchase Price for the Assets, Purchaser agrees that the OTA Assets shall be conveyed to the
New Operators as Purchaser’s nominee pursuant to the terms and conditions of the OTA. 
 2.04 Method of Payment. The
Purchase Price shall be paid as follows: 
 (a) On the Closing Date, the Escrow Agent will, in accordance with the Escrow
Agreement, pay to Sellers, by wire transfer of immediately available funds, the Deposit and any interest earned on the Deposit as of the Closing Date. 
 (b) On the Closing Date, Purchaser will pay to Seller, by wire transfer of immediately available funds, the remaining portion of the Purchase Price (i.e., less the amount paid to Sellers under
Section 2.04(a) above), plus or minus any adjustments, prorations or credits as may be provided for hereunder or by agreement of the parties, including Section 2.05 hereof. 

  
 5 

 2.05 Prorations. All expenses of owning or operating the Assets will be prorated as
of the Closing, including: (a) vendor expenses, (b) water, sewer, gas, electricity, and other utility charges, (c) real and personal ad valorem Taxes, and (d) prepaid expenses. Real and personal ad valorem Taxes shall be prorated
at Closing on the basis of the amount of such Taxes for the tax year in which the Closing occurs. With respect to determining the amount of all prepaid expenses, the parties agree to cooperate and act reasonably to determine such amounts no later
than two (2) business days prior to Closing, if necessary, by making representatives available to review the books and records of the Facilities. Other adjustments and prorations may be settled by the parties, acting reasonably, within ninety
(90) days following Closing or as otherwise agreed by Sellers and Purchaser. In the event that any errors in prorations or adjustments made at Closing are discovered after Closing, the parties shall promptly re-adjust the subject amounts, with
such payments to be made between the parties as are necessary to correct the errors. In all events, the parties shall make such adjustments, or confirm in writing that no such adjustments are necessary, within one hundred eighty (180) days
following Closing. Notwithstanding the foregoing, any party hereto not bringing to the attention of the other party, in writing, prior to the expiration of such one hundred eighty (180) day period, a potential claim for a re-adjustment in
prorations based on error, miscalculation or omission shall be deemed to have automatically waived and relinquished such claim. 

2.06 Purchase Price Allocation. The parties agree that the Purchase Price shall be allocated among the Facilities as follows:

  

					
	 •    Batesville
	  	$	6,205,650.00	  
	 •    Broadway
	  	$	11,847,150.00	  
	 •    Searcy
	  	$	7,898,100.00	  
	 •    Mine Creek
	  	$	3,384,900.00	  
	 •    Magnolia
	  	$	11,847,150.00	  
	 •    Jonesboro
	  	$	15,232,050.00	  
		
	 Total
	  	$	56,415,000.00	  

 The parties agree to use the foregoing allocation for all purposes relating to the transactions contemplated hereby,
including in Purchaser’s and/or New Operator Parent’s applications for any and all required licenses in connection with the ownership and operation of the Facilities. Without limiting the generality of the foregoing, for Tax purposes, the
parties agree to allocate the Purchase Price, the Assumed Liabilities, and other relevant items in accordance with the foregoing and Section 1060 of the Code. To that end, Purchaser will prepare and deliver to Sellers, within ten (10) days
prior to the Closing Date, an allocation schedule setting forth Purchaser’s good-faith determination of such allocation (within the foregoing parameters), which allocation schedule will be subject to Sellers’ reasonable approval. The
parties agree that they will report the federal, state, and local Tax consequences of the purchase and sale hereunder (including in filings on IRS Form 8594) in a manner consistent with such allocation and that they will not take any position
inconsistent therewith in connection with any tax return, refund claim, litigation or otherwise, unless and to the extent required to do so pursuant to applicable Law. Sellers and Purchaser will cooperate in the filing of any forms (including IRS
Form 8594) with respect to such allocation. Notwithstanding the foregoing, the portion of the Purchase Price allocable to any tangible personal property which has been depreciated for federal income tax purposes shall equal the adjusted tax basis of
such property. 

  
 6 

 2.07 Due Diligence Review Period. 

(a) Purchaser shall have the Due Diligence Review Period in which to review and/or perform all inspections and studies of the Assets and
review Records (other than Excluded Records) that relate to the Assets to be purchased. Sellers shall promptly comply with all reasonable requests for information and document requests by Purchaser relating to the Assets to be purchased. Purchaser
hereby acknowledges that Sellers have provided Purchaser and its agents with access to such Records for the purpose of inspecting them and will provide Purchaser and its agents with access to the Assets for purposes of appraisal, survey, inspection
and testing; provided, however, that any such visit or inspection must be arranged in advance with a representative of Sellers and shall otherwise conform with the provisions of Section 4.04 hereof. Purchaser hereby acknowledges that Sellers
have provided Purchaser with copies of all third party reports relating to the Assets or Facilities that are in the possession of Sellers (e.g. existing Surveys, Phase I environmental audits, engineering reports, etc.); provided,
however, that Sellers make no representation or warranty with respect to the completeness or accuracy of any information contained in such reports. Purchaser’s due diligence review shall include the ability to conduct in-depth
discussions with regional staff and various department heads at the Facilities, and such other Persons as reasonably requested by Purchaser, all as scheduled through Sellers and otherwise in accordance with Section 4.04 hereof. Prior to
expiration of the Due Diligence Review Period, Purchaser shall have the right to terminate the transaction set forth herein, in Purchaser’s sole discretion, by delivering a written notice of termination to Sellers, with a copy to the Escrow
Agent, whereupon the Deposit (and any interest earned thereon), less the fees and expenses of the Escrow Agent, shall be promptly returned to Purchaser by Escrow Agent. In such event, Sellers shall agree to cooperate by executing any documents which
may be required by Escrow Agent to return the Deposit to Purchaser and, except as otherwise expressly provided herein, neither party shall have any further rights, duties, obligations or liabilities hereunder. Failure to timely deliver such written
notice shall be deemed a waiver of such right of termination. 
 (b) Purchaser acknowledges and agrees that Purchaser shall be
responsible for verifying, through Purchaser’s own due diligence, the accuracy and completeness of all documents and information, including all Records and other materials, provided by Sellers to Purchaser, and any reliance by Purchaser on such
documents and information shall be at Purchaser’s own risk and expense. Likewise, notwithstanding anything to the contrary herein, Sellers make no representation or warranty whatsoever as to the truth, accuracy or completeness of any materials
or information, including but not limited to the Records and any other materials relating to the Assets, delivered or made available by Sellers to Purchaser in connection with the transaction contemplated herein. 

2.08 Title Commitments and Surveys; Permitted Exceptions. Sellers have delivered to Purchaser copies (which are in Seller’s
possession) of existing Title Commitments, title policies, and Surveys with respect to the Land and Improvements. Purchaser may, at its sole cost and expense, obtain any and all updates with respect thereto. Purchaser shall have until the expiration
of the Due Diligence Review Period to reasonably object, in writing, to any matters 

  
 7 

 
(other than loan documents to be released at Closing), which appear of record in such Title Commitments and Surveys. Any matter appearing in the Title Commitments or Surveys which is not timely
objected to by Purchaser will constitute a Permitted Exception, and Purchaser’s right to request Sellers to cure such matters shall be deemed waived by Purchaser. If, however, any matters are unacceptable to Purchaser and Purchaser notifies
Sellers in writing of such fact prior to the expiration of the Due Diligence Review Period, Sellers shall exercise reasonable efforts to cure such matters prior to the Closing Date, or, if necessary, extend the Closing Date for up to ten
(10) days to complete such cure. If Sellers notify Purchaser that Sellers are unable to remove such unacceptable matters, or if Sellers fail or refuse to cure such unacceptable matters (and are unable to obtain title insurance coverage against
such matters) within the time period provided, Purchaser may, as Purchaser’s sole and exclusive remedy, either (i) terminate this Agreement by giving Sellers written notice thereof, in which event the Deposit shall be returned to
Purchaser, and, except as otherwise expressly provided herein, neither party shall have any further rights, duties, obligations or liabilities hereunder; or (ii) elect to purchase the Assets subject to such unacceptable matters not so
eliminated, modified, or cured, in which event the Purchase Price shall not be reduced (and such uncured matters shall be deemed to be Permitted Exceptions). Purchaser shall make such election upon the earlier of the Closing Date, or within ten
(10) days of receipt of Sellers’ written notice that it is unable to remove the unacceptable matters or that the unacceptable matters cannot be removed or cured (which shall include obtaining title insurance coverage against such matters)
on commercially reasonable terms. Purchaser’s failure to provide written notice of such election in timely manner shall mean Purchaser has elected to accept the Assets and close the transaction without cure of the identified matters.

 2.09 Related Transactions. The parties acknowledge that the transaction hereunder consists of the purchase of six
(6) Facilities by Purchaser from Sellers. It is the intention of the parties that these Facilities shall be purchased together at Closing (contemporaneously with the effectiveness of the OTA and consummation of the transactions set forth
therein and the purchase of the Lake Village Residential Care Center pursuant to that certain Asset Purchase Agreement, dated as of the date hereof by and among LVRC Properties, LLC and 917 Mary B. Street, LLC (the “Lake Village Purchase
Agreement”)), and accordingly, the parties shall cause the Closing to be coordinated and completed in such a manner as to allow a simultaneous closing on the various properties. In the event either party shall have the right hereunder to
cancel or terminate this Agreement, such cancellation or termination shall apply to the rights and obligations arising from or related to the purchase of each Facility unless otherwise agreed by the parties. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES 
 3.01 Seller’s Representations and Warranties. Each Seller hereby represents and warrants to Purchaser as follows, except in all cases as disclosed in the disclosure schedules accompanying this
Agreement (the “Disclosure Schedules”): 
 (a) Organization. Each Seller is duly organized and validly
existing under the Laws of Arkansas. 

  
 8 

 (b) Authority. The execution, delivery, and performance by each Seller of this
Agreement has been duly authorized by all necessary limited liability company action by the manager and/or sole member of such Seller, and no other limited liability company proceedings on the part of such Seller are necessary to authorize such
execution, delivery, and performance. This Agreement has been duly executed by each Seller and constitutes its valid and binding obligation, enforceable in accordance with its terms, subject to bankruptcy, insolvency, and other statutes affecting
creditors’ rights generally. 
 (c) No Conflict or Violation. The execution, delivery, and (subject to the receipt
of all consents, approvals, authorizations, certifications, waivers, and notifications set forth on Schedule 3.01(c) of the Disclosure Schedules (the “Seller Required Consents”)) performance by each Seller of this
Agreement does not and will not: (i) violate or conflict with any provision of the certificate of organization or operating agreement of such Seller, or (ii) to each Seller’s Knowledge, violate or result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Lease, which violation, conflict, breach, or default in any such case would reasonably be expected to have a material adverse effect on the Assets or the operations of the Facilities.

 (d) Compliance with Law. With respect to the ownership of the Assets and the operations of the Facilities, such Seller
has not received written notice that any Seller or any Facility is in violation of any applicable Law (other than Environmental Law, as to which the only representations and warranties made by Sellers are those contained in Section 3.01(g)
hereof) except for violations that would not reasonably be expected to have a material adverse effect on the Assets or the operations of the Facilities. To each Seller’s Knowledge, no investigation or review by any Governmental Authority
relating to the ownership of the Assets or the operations of the Facilities is pending or has been threatened in writing. To each Seller’s Knowledge, such Seller is not in default with respect to any order, judgment, or decree of any court or
other Governmental Authority applicable to such Seller, the Assets, or the operations of the Facilities, other than violations and defaults the consequences of which would not reasonably be expected to have a material adverse effect on the OTA
Assets or the operations of the Facilities, result in a fine in excess of One Thousand Dollars ($1,000) per violation, or result in a reduction of available beds at any Facility. 

(e) Litigation. Except as set forth on Schedule 3.01(e) of the Disclosure Schedules, as of the Effective Date, there
are no pending, or to each Seller’s Knowledge threatened, claims, causes of action, suits, or proceedings brought by or against such Seller that, if adversely determined, could reasonably be expected to have a material adverse effect on the
Assets or the operations of the Facilities or materially impair the ability of such Seller to consummate the transactions contemplated by this Agreement. 
 (f) Licenses. To each Seller’s Knowledge, Schedule 3.01(f) of the Disclosure Schedules sets forth a complete and correct list of all material permits, licenses, certifications,
registrations, authorizations, and accreditations from any Governmental Authority (“Licenses”) obtained or held by Sellers in connection with the ownership of the Assets. To each Seller’s Knowledge, as of the Effective Date of
this Agreement, and except as would not reasonably be expected to have a material adverse effect on the assets and the operations of the Facilities: (i) each such License is valid and in full force and effect, and is not subject to any pending
or threatened proceeding to revoke, cancel, suspend or declare such License invalid in any respect; and (ii) such Seller is not in material default under any License. 

  
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 (g) Environmental Matters. No Seller has received written notice of any violation of
any applicable Environmental Law. To each Seller’s Knowledge, there is and has been no contamination by release, spill, leak, discharge, or emission of any Hazardous Materials from, in, on, or beneath the Land in violation of Environmental Law.

 (h) Tax Matters. To each Seller’s Knowledge: (i) except for Taxes to be prorated under this Agreement, and
except as otherwise provided under this Agreement, there are no unpaid Taxes of such Seller that will become the obligation of Purchaser; and (ii) such Seller has timely filed all Tax returns in respect of the Assets and the operations of the
Facilities. No Seller is a foreign entity, as the term is defined in the Code and the regulations promulgated thereunder. 
 (i)
Financial Statements. Sellers have made available to Purchaser: (i) balance sheet information with respect to the Assets as of December 31, 2012 (the “Balance Sheet Information”) and (ii) income statements for
the operations of the Facilities for the six month period ending June 30, 2012 (the “Income Statement Information”). To each Seller’s Knowledge, the Balance Sheet Information and the Income Statement Information fairly
present, as of the dates thereof or for the periods covered thereby, in all material respects, the items reflected therein. 

(j) Broker’s Fee. No broker, finder, or other Person is entitled to any brokerage fees, commissions, or finder’s fees
for which Purchaser could become liable or obligated in connection with the transactions contemplated hereby by reason of any action taken by Seller. Seller shall be solely obligated to pay any and all commissions due to any party resulting from the
sale and purchase of the Assets, including Vantage Medical, Inc. and Stifel, Nicolaus & Company. Notwithstanding the foregoing, Purchaser shall reimburse Seller for any adverse tax consequences arising out of its payment of the Stifel,
Nicolaus & Company brokerage fees from the Purchase Price. 
 (k) OFAC. Each Seller is in compliance with the
requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the
Treasury (“OFAC”) and in any enabling legislation or other Executive Orders or regulations in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively hereinafter referred to as the
“Orders”). None of the Sellers nor any of their respective Affiliates (i) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists
or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”), (ii) is a Person (as defined in the
Order) who has been determined by competent authority to be subject to the prohibitions contained in the Orders, or (iii) is owned or controlled by (including without limitation by virtue of such Person being a director or owning voting shares
or interests), or acts for or on behalf of, any Person on the Lists or any other Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders.

  
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Purchaser is not acting, directly or indirectly for, or on behalf of, any Person, group, entity or nation named by any Executive Order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned
or blocked Person, entity, or nation pursuant to any Law that is enforced or administered by the Office of Foreign Assets Control, and is not engaging in the transactions contemplated herein, directly or indirectly, on behalf of, or instigating or
facilitating the transactions contemplated herein, directly or indirectly, on behalf of, any such Person, group, entity or nation. 
 (l) ERISA. Neither (i) any assets of Sellers, nor (ii) any funds to be used by Sellers with respect to the transactions contemplated pursuant to this Agreement, are, or at the Closing
will be, pursuant to ERISA or the Code, considered for any purpose of ERISA or Section 4975 of the Code to be assets of a Plan. Seller is not executing this Agreement and will not be performing its obligations or exercising its rights or
remedies under the Agreement on behalf of or for the benefit of any Plan. Neither the execution nor delivery of this Agreement by Seller, nor the performance by Seller of its obligations or the exercise of its rights or remedies under this
Agreement, nor any transaction contemplated under this Agreement, is or will be a “prohibited transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Code. For the purposes hereof the following terms shall
have the following meanings: “Code” shall mean the Internal Revenue Code of 1986, as amended; “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended (and any successor statute and any
applicable regulations or guidance promulgated thereunder); and “Plan” shall mean a “plan” as that term is defined in Section 3(3) of ERISA or Section 4975 of the Code. 

(m) Restriction of Access. Seller has not received written notice of any current federal, state, county or municipal plans to
materially restrict or materially change access to any of the Facilities from any highway or road leading directly to or abutting any part of the Facilities. 
 (n) Existing Use. Seller has not received written notice that the Land and the use thereof for the existing Facilities, and the condition thereof violates in any material respect any applicable
deed restrictions, zoning or subdivision regulations, urban redevelopment plans, local, state or federal environmental law or regulation or any building code or fire code (except for code-required sprinkler systems which are being installed at the
Batesville Healthcare Center and the Searcy Healthcare Center, as previously disclosed to Purchaser) applicable to the Assets. 

Purchaser hereby acknowledges and agrees that, except with respect to the foregoing representations and warranties set forth in this
Section 3.01, the Assets are to be conveyed by Sellers to Purchaser in “as-is, where-is” condition without warranty or representation, express or implied, as to zoning, physical condition, environmental condition, suitability for a
particular purpose or any other matter whatsoever. 

  
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 3.02 Purchaser’s Representations and Warranties. Purchaser hereby represents and
warrants to Sellers as follows: 
 (a) Organization. Purchaser is a limited partnership, duly organized and validly
existing under the laws of Delaware. 
 (b) Authority. Purchaser has full power and authority to execute and deliver this
Agreement and to perform all obligations of Purchaser arising under this Agreement. Subject to Purchaser obtaining approval from its Board of Directors during the Due Diligence Review Period, Purchaser has full power and authority to execute and
deliver all other documents to be executed and delivered by Purchaser pursuant to this Agreement (the “Purchaser’s Documents”), and to perform all obligations of Purchaser arising under each of Purchaser’s Documents. The
execution and delivery by the signer on behalf of Purchaser of this Agreement and, when executed and delivered, each of Purchaser’s Documents, and the performance by Purchaser of its obligations under this Agreement, and when executed and
delivered, each of Purchaser’s Documents, has been, or will be, duly and validly authorized by all necessary actions by Purchaser. This Agreement and, when executed and delivered, each of Purchaser’s Documents, constitutes, or will
constitute, legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with its and their terms, except to the extent Sellers are in default thereunder. Unless Purchaser terminates this Agreement prior to the end
of the Due Diligence Review Period as provided for herein, following the expiration of the Due Diligence Review Period, Purchaser shall be deemed to have represented that it has obtained all necessary Board approvals. 

(c) No Conflict or Violation. The execution, delivery, and (subject to the receipt of all consents, approvals, authorizations,
certifications, waivers, and notifications set forth on Schedule 3.02(c) of the Disclosure Schedules (the “Purchaser Required Consents”)) performance by Purchaser of this Agreement does not and will not:
(i) violate or conflict with any provision of the articles or certificate of incorporation of Purchaser or its bylaws, (ii) violate any provision of Law applicable to Purchaser, or (iii) violate or result in a breach of or constitute
(with due notice or lapse of time or both) a default under any material contract to which Purchaser is a party. 
 (d)
Broker’s Fee. No broker, finder, or other Person is entitled to any brokerage fees, commissions, or finder’s fees for which Sellers could become liable or obligated in connection with the transactions contemplated hereby by reason
of any action taken by Purchaser. 
 (e) OFAC. Purchaser is in compliance with the requirements of the Orders and other
similar requirements contained in the rules and regulations OFAC. Neither the Purchaser nor any of its Affiliates (i) is listed on the Lists, (ii) is a Person (as defined in the Order) who has been determined by competent authority to be
subject to the prohibitions contained in the Orders, or (iii) is owned or controlled by (including without limitation by virtue of such Person being a director or owning voting shares or interests), or acts for or on behalf of, any Person on
the Lists or any other Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders. Purchaser is not acting, directly or indirectly for, or on behalf of, any Person, group, entity or nation named
by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist,
“Specially Designated National and Blocked 

  
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Person,” or other banned or blocked Person, entity, or nation pursuant to any Law that is enforced or administered by the Office of Foreign Assets Control, and is not engaging in the
transactions contemplated herein, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated herein, directly or indirectly, on behalf of, any such Person, group, entity or nation. 

(f) ERISA. Neither (i) any assets of Purchaser, nor (ii) any funds to be used by Sellers with respect to the
transactions contemplated pursuant to this Agreement, are, or at the Closing will be, pursuant to ERISA or the Code, considered for any purpose of ERISA or Section 4975 of the Code to be assets of a Plan. Purchaser is not executing this
Agreement and will not be performing its obligations or exercising its rights or remedies under the Agreement on behalf of or for the benefit of any Plan. Neither the execution nor delivery of this Agreement by Purchaser, nor the performance by
Purchaser of its obligations or the exercise of its rights or remedies under this Agreement, nor any transaction contemplated under this Agreement, is or will be a “prohibited transaction” within the meaning of Section 406 of ERISA or
Section 4975 of the Code. 
 ARTICLE IV 
 COVENANTS 
 4.01 Satisfaction of Conditions. Sellers and Purchaser
shall use commercially reasonable efforts to perform and satisfy, as soon as reasonably practicable, all conditions to their respective obligations to consummate the transactions contemplated by this Agreement. In particular, but without limitation,
(a) Sellers shall use commercially reasonable efforts to obtain the Seller Required Consents, and (b) Purchaser shall use commercially reasonable efforts to obtain the Purchaser Required Consents. To that end, the parties agree to
cooperate with each other in connection with any filing, submission, or notice to any Governmental Authority or other Person, and to keep each other informed on a timely basis of any other material communication to or from any Governmental Authority
or other Person, in connection with or otherwise regarding the transactions contemplated hereby. 
 4.02 Conduct of Business
Before the Closing Date. Except as provided on Schedule 4.02 of the Disclosure Schedules, and except as Purchaser may otherwise consent in writing (which consent will not be withheld, conditioned or delayed unreasonably), between
the Effective Date and the Closing Date, Sellers will own and operate the Facilities in the ordinary course of business. 
 4.03
Cooperation Regarding HUD Loans. Sellers and Purchaser shall reasonably cooperate to facilitate Sellers’ payoff of the HUD Loans at Closing, and the release of the related mortgages. 

4.04 Access to Records and the Facilities. Subject to Section 4.05 below, Sellers will afford Purchaser and its
representatives reasonable access, during normal business hours throughout the period prior to the Closing Date or the earlier termination of this Agreement, to the Records (other than Excluded Records). Upon reasonable prior notice, Sellers will
also afford Purchaser reasonable access to the Facilities throughout the period prior to the Closing Date or the earlier termination of this Agreement. The rights of access contained in this Section 4.04 are granted subject to, and on, the
following terms and conditions: 
 (a) Prior to entering onto any of the Facilities, Purchaser, as well as any of its agents or
representatives who are entering onto the Facilities, shall deliver to Sellers certificates evidencing (i) commercial general liability insurance coverage against injury (including death) and property damage with a limit of not less than
$1,000,000 and naming Sellers as additional insureds, (ii) worker’s compensation insurance coverage with limits of not less than that required by law, (iii) employer’s liability insurance coverage against accident and disease
with a limit of not less than $1,000,000 for each employee, (iv) contractual liability insurance, and (v) prior to allowing any consultant or other third party performing audits or other inspections of the environmental aspects of the
Facilities, environmental liability insurance with a limit of not less than $1,000,000. 

  
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 (b) Any such access shall not include physical testing or samplings, and shall be exercised
in such a manner as not to interfere unreasonably with the operation of the Facilities, and shall only be exercised with and through the prior coordination of Sellers, providing Sellers with an opportunity to accompany any and all Persons given such
access. 
 (c) All such rights of access shall be at Purchaser’s sole cost, expense, and risk. 

(d) Purchaser shall comply with and adhere to all of Sellers’ safety policies and procedures in connection with such access.

 (e) Purchaser shall indemnify Sellers for any damages, suits, claims, proceedings, fines, judgments, costs, and expenses
(including reasonable attorneys’ fees) (collectively, “Losses”) that Sellers or any third party may suffer as a result of Purchaser’s exercise (directly or through its agents, representatives or employees) of its rights
under this Section 4.04 or Section 2.07 or a breach of any of its obligations under Section 4.05, unless caused by Seller’s gross negligence or willful misconduct. This indemnification will survive the termination of this
Agreement. 
 4.05 Confidentiality. 
 (a) Purchaser agrees that all non-public information in whatever form delivered, made available, or disclosed before or after the date hereof by Sellers or its representatives to Purchaser or its
representatives in connection with the transactions contemplated hereby (the “Confidential Information”) is of a confidential and proprietary nature to Seller. Purchaser agrees: (i) that it will maintain the confidentiality of
the Confidential Information, (ii) that it will protect and secure the Confidential Information in a commercially reasonable manner, and in any event in a manner no less protected and secure than Purchaser’s own confidential information,
(iii) that it will not use the Confidential Information other than in connection with the consummation of the transactions contemplated by this Agreement (or to enforce its rights under this Agreement) or, following Closing, to own the
Facilities, and (iv) that it will disclose the Confidential Information only: (x) as may be required by Law, or (y) to its directors, officers, employee, agents, and representatives (including potential lenders) on a need- to-know

  
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basis in order to consummate the transactions contemplated hereby (or to enforce its rights hereunder). If Closing does not occur, at Sellers’ request, Purchaser will promptly return to
Sellers or destroy all Confidential Information, in whatever format, including Confidential Information incorporated into memoranda or other writings or analysis of Purchaser or its representatives. Purchaser agrees to cause its directors, officers,
employees, agents, and representatives to comply with the obligations of Purchaser under this Section 4.05. This Section 4.05 will survive the termination of this Agreement. 

(b) Purchaser recognizes that irreparable injury will result from a breach by Purchaser of this Section 4.05 and/or
Section 4.06, and that money damages will be inadequate to fully remedy such injury. Accordingly, in the event of a breach or threatened breach of such provisions, Sellers shall be entitled to seek (in addition to any other remedies which may
be available to Sellers) one or more preliminary or permanent orders (i) restraining and enjoining any act which would constitute a breach or (ii) compelling the performance of any obligation which, if not performed, would constitute a
breach. 
 4.06 Availability of Records. After the Closing Date, Purchaser shall provide to Sellers and their respective
representatives (after reasonable notice and during normal business hours and without charge to Sellers) access to all books and records relating to the Assets, for periods prior to the Closing, and shall preserve such books and records until the
later of: (a) six (6) years after the Closing Date, or (b) the retention period required by applicable Law. Such access shall include reasonable access to any computerized information systems that contain data regarding the Assets.
Purchaser acknowledges that Sellers have the right to retain originals or copies of such books and records for periods prior to the Closing. With respect to any litigation and claims that are Retained Liabilities, Purchaser will render all
reasonable assistance that Sellers may request in defending such litigation or claim and will make available to Sellers, on reasonable terms, the personnel of Purchaser or its Affiliates most knowledgeable about the matter in question. Purchaser
shall also have the option, at Purchaser’s cost and expense, to obtain (and disclose, if required by Applicable Law) audited financial statements for each Property for the prior three (3) years, and in such case, Sellers agree to cooperate
with Purchaser and Purchaser’s auditors in the preparation of the same, which obligation to cooperate shall expressly survive Closing; provided that the foregoing right shall not give rise to any additional duties, liabilities or
responsibilities on the part of Sellers, except as otherwise expressly provided herein. 
 4.07 Casualty Loss.
Notwithstanding any provision hereof to the contrary, if, before the Closing Date, all or any portion of the Assets or any Facility is: (a) condemned or taken by eminent domain or is the subject of a pending or threatened condemnation or taking
which has not been consummated, or (b) materially damaged or destroyed by fire or other casualty, Sellers shall notify Purchaser promptly in writing of such fact, and: (x) in the case of condemnation or taking, Sellers shall assign or pay,
as the case may be, any proceeds thereof to Purchaser at the Closing, and (y) in the case of a fire or other casualty, Sellers shall either restore such damage or assign the insurance proceeds therefrom to Purchaser and credit the amount of any
deductible against the Purchase Price at Closing. Notwithstanding the foregoing, either Sellers or Purchaser may terminate this Agreement if such condemnation, taking, damage or destruction (i) results in the loss of an entire Facility or
(ii) results in costs, in the aggregate, in excess of 15% of the Purchase Price, in each case, taking into account any insurance or other proceeds received or to 

  
 15 

 
be received, and any remediation plans made or steps undertaken, in respect thereof. If this Agreement is terminated pursuant to this Section 4.07, the parties agree to instruct the Escrow
Agent to return the Deposit (and any interest earned thereon) to Purchaser, less the fees and expenses of the Escrow Agent, and this Agreement, except as expressly provided herein, will become null and void and have no effect. 

4.08 Transition. Prior to Closing, Sellers and Purchaser will cooperate to effectuate a smooth and orderly transition of the
ownership of the Assets. 
 4.09 Financial Records Updates. Sellers shall provide Purchaser with updates to the Balance
Sheet Information and the Income Statement Information as the same become available in the ordinary course of Seller’s preparation of the same. 
 4.10 Possession. At the Closing, the Existing Operators will continue to operate and remain in possession of the Facilities pursuant the Subleases and the Master Leases, subject in all respects to
the OTA and the Interim Period Agreements (as defined in the OTA). 
 ARTICLE V 

CONDITIONS TO CLOSING 
 5.01 Joint Conditions. The respective obligations of each party to effect the transactions contemplated hereby are subject to the satisfaction or waiver by Sellers and Purchaser at or prior to the
Closing Date of the following conditions. 
 (a) No applicable Law prohibiting the consummation of the transactions contemplated
hereby shall be in effect, and no court of competent jurisdiction shall have issued any order that is in effect and that enjoins the consummation of the transactions contemplated hereby; 

(b) Purchaser shall have received the Purchaser Required Consents; and 

(c) Sellers shall have received the Seller Required Consents. 
 5.02 Purchaser’s Conditions. The obligation of Purchaser to effect the transactions contemplated hereby is also subject to the satisfaction or waiver by Purchaser at or prior to the Closing
Date of the following conditions: 
 (a) Sellers shall have performed and complied in all material respects with the covenants
and agreements contained in this Agreement that are required to be performed and complied with by Sellers on or prior to the Closing Date; 
 (b) Each Seller’s representations and warranties contained herein shall be true and correct in all material respects as of the Closing Date as if made at and as of the Closing Date (except to the
extent that any such representation or warranty is expressly made as of an earlier date, in which case such representation and warranty will be true and correct in all material respects only as of such date); 

  
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 (c) Purchaser shall have received a certificate from the manager of Sellers, dated as of the
Closing Date, stating that, to the best of such manager’s knowledge, the conditions set forth in Sections 5.02(a) and 5.02(b) have been satisfied; 
 (d) Purchaser shall be in receipt of payoff letters with respect to the HUD Loans indicating that the Purchase Price is sufficient to fully pay off such HUD Loans, and such payoff will result in the
release of the related mortgages; 
 (e) Sellers and Existing Operators shall have executed the OTA effective as of the Closing
Date; 
 (f) Sellers shall have terminated all of the Leases; and 

(g) Purchaser shall have received the items to be delivered pursuant to Section 6.02 below. 

Notwithstanding anything to the contrary herein, to the extent that any documents or information regarding the Sellers or the Assets are
disclosed to Purchaser, brought to Purchaser’s attention, either orally or in writing, or are otherwise actually known to Purchaser, in each case, prior to Closing, including, without limitation, any matters disclosed to Purchaser in the
Records or any interview with any property manager, staff member, vendor, supplier or other Persons (without regard to whether such documents or information renders a representation or warranty inaccurate or incomplete in any respect), and Purchaser
nevertheless closes on the purchase of the Assets, Purchaser shall be deemed to have accepted and to have waived any objection to or claim based on such documents or information. 

5.03 Sellers’ Conditions. The obligation of Sellers to effect the transactions contemplated hereby is also subject to the
satisfaction or waiver by Sellers at or prior to the Closing Date of the following conditions: 
 (a) Purchaser shall have
performed and complied in all material respects with the covenants and agreements contained in this Agreement that are required to be performed and complied with by Purchaser (or it’s assignees) on or prior to the Closing Date; 

(b) Purchaser’s representations and warranties contained herein shall be true and correct in all material respects as of the Closing
Date as if made at and as of the Closing Date (except to the extent that any such representation or warranty is expressly made as of an earlier date, in which case such representation and warranty will be true and correct in all material respects
only as of such date); 
 (c) Sellers shall have received a certificate from a duly authorized corporate officer of Purchaser,
dated as of the Closing Date, stating that, to the best of such officer’s knowledge, the conditions set forth in Sections 5.03(a) and 5.03(b) have been satisfied; 
 (d) New Operator Parent and New Operators shall have each executed the OTA effective as of the Closing Date; and 
 (e) Sellers shall have received the items to be delivered pursuant to Section 6.03 below. 

  
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 ARTICLE VI 
 CLOSING 
 6.01 Closing. Closing shall take place (effective as of
12:00 midnight on the Closing Date) following the satisfaction (or waiver) of all of the conditions set forth in Article V hereof (other than those conditions that by their nature are to be satisfied on the Closing Date, but subject to the
satisfaction or waiver of those conditions), on the first to occur of (i) such date and time as the parties agree, or (ii) May 31, 2013 (the “Outside Date”). 

6.02 Sellers’ Closing Deliverables. At the Closing, and subject to the receipt of the Purchase Price, Sellers shall deliver,
or cause to be delivered, to Purchaser the following: 
 (a) Special Warranty Deeds for the Land, duly executed by Sellers and
in a form reasonably acceptable to Purchaser; 
 (b) Bills of Sale with respect to the Assets, duly executed by Sellers and in a
form reasonably acceptable to Purchaser; 
 (c) The certificate contemplated by Section 5.02(c); 

(d) All consents, waivers, and approvals obtained by Sellers from third parties in connection with this Agreement; 

(e) Certificates of Good Standing with respect to Sellers (dated no more than fifteen (15) days prior to the Closing Date) issued by
the Secretary of State (or other duly authorized official) of Arkansas; 
 (f) An affidavit that Sellers are not foreign
corporate entities under Section 1445(b)(2) of the Code; 
 (g) A copy, certified by an authorized manager of each Seller,
of resolutions authorizing the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby; 
 (h) Existing Operators’ counterparts to the Interim Period Agreements (as defined in the OTA); and 
 (i) All such other agreements, documents, or instruments as are required to be delivered to Purchaser by Sellers at or prior to the Closing Date under this Agreement, and all instruments of transfer,
assignment, or conveyance as are reasonably requested by Purchaser in connection with the transfer of the Assets to Purchaser in accordance with this Agreement. 
 In no event shall Sellers, in delivering any agreement, document, instrument, certificate, or other writing under this Agreement, be required to or be deemed to make any representation, warranty, or
covenant, or to accept any liability or obligation, in addition to the representations, warranties, and covenants made, and the liabilities and obligations accepted, by Sellers under this Agreement. 

  
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 6.03 Purchaser’s Closing Deliverables. At the Closing, Purchaser shall deliver,
or cause to be delivered, to Sellers the following: 
 (a) The balance of the Purchase Price, in accordance with
Section 2.04; 
 (b) The certificate contemplated by Section 5.03(c); 

(c) All consents, waivers, and approvals obtained by Purchaser from third parties in connection with this Agreement; 

(d) Certificates of Good Standing with respect to Purchaser (dated no more than fifteen (15) days prior to the Closing Date) issued
by the Secretary of State (or other duly authorized official) of Delaware; 
 (e) A copy, certified by a duly authorized officer
of Purchaser, of resolutions authorizing the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby; and 
 (f) All such other agreements, documents, or instruments as are required to be delivered to Sellers by Purchaser at or prior to the Closing Date under this Agreement, and all such other documents,
instruments, and undertakings as are reasonably requested by Seller in connection with the assumption by Purchaser of the Assumed Liabilities in accordance with this Agreement. 

6.04 Closing Costs and Transfer Taxes. Closing costs shall be divided according to custom in the State of Arkansas, with the deed
transfer taxes to be paid by Purchaser. Each party shall pay all costs and fees of its respective counsel. Purchaser shall purchase, at Purchaser’s expense, Owner’s ALTA title insurance policies, with any endorsements sought by Purchaser
in its discretion. Purchaser shall pay all sales, excise and similar Taxes (if any) with respect to the sale and transfer of the Assets hereunder. 
 6.05 Release of New Operator Parent Deposit Sellers, Purchaser and New Operator Parent acknowledge that Escrow Agent is holding a $500,000 deposit from New Operator Parent (the “New
Operator Parent Deposit”) pursuant to the Letter of Intent. Sellers and New Operator Parent agree and hereby instruct Escrow Agent, simultaneous with the closing under this Agreement and the Lake Village Purchase Agreement, to release
the New Operator Parent Deposit to Purchaser or its Affiliate to be placed as a security deposit under the new leases being entered into effective as of Closing between Purchaser (or its Affiliates) and New Operator Parent. Sellers, Purchaser
and New Operator Parent agree that this provision shall be void and of no effect if the closings under this Agreement and the Lake Village Purchase Agreement fail to occur. 

  
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 ARTICLE VII 
 DEFAULT/REMEDIES 
 7.01 Default by Purchaser; Effect of Failure of
Sellers’ Conditions to Closing. If Purchaser breaches or defaults in any covenant, warranty, representation or obligation under this Agreement prior to Closing, and such breach or default is not cured within five days after written notice
from Sellers, or if any condition contained in Section 5.03 has not been satisfied (or waived by Sellers) on or before the Outside Date, then Sellers shall have the right to terminate this Agreement and retain the full amount of the Deposit
(and any interest earned thereon) as Sellers’ sole remedy and liquidated damages on account of Purchaser’s default, and the parties agree to instruct the Escrow Agent to disburse the Deposit in accordance with the same; provided,
however, that Sellers shall not have the right to terminate this Agreement and retain the Deposit under this Section 7.01 if Sellers’ failure to fulfill any of its obligations under this Agreement is the reason that the Closing has
not occurred on or before the Outside Date. Notwithstanding the foregoing, this provision shall not limit Sellers’ right and claim against Purchaser for any portion of the Deposit which is not paid to Sellers, and further provided that this
provision shall not limit Sellers’ right to pursue and recover on a claim for attorney’s fees in accordance with Section 9.08 hereof, and a claim with respect to any indemnity obligations of Purchaser that expressly survive
termination of this Agreement. The parties agree that Sellers’ actual damages would be difficult to ascertain and that the Deposit is the parties’ best and good faith estimate of such damages and not a penalty. 

7.02 Default by Sellers; Effect of Failure of Purchaser’s Conditions to Closing. If Sellers breach or default in any
covenant, warranty, representation or obligation under this Agreement prior to Closing, and such breach or default is not cured within five days after written notice from Purchaser, or if any condition contained in Section 5.02 has not been
satisfied (or waived by Purchaser) on or before the Outside Date, then Purchaser shall have, as its sole option and remedy on account thereof, the right to either (a) enforce this Agreement by specific performance, or (b) terminate this
Agreement and receive (i) a return of the Deposit (and any interest earned thereon), and the parties agree to instruct the Escrow Agent to disburse the Deposit in accordance with the same; provided, however, that Purchaser shall not have the
right to terminate this Agreement and receive a return of the Deposit under this Section 7.02 if Purchaser’s failure to fulfill any of its obligations under this Agreement is the reason that the Closing has not occurred on or before the
Outside Date; plus (ii) reimbursement from Sellers for all of Purchaser’s reasonable, actual, third party out-of-pocket expenses not to exceed $250,000 incurred by Purchaser in connection with the transactions contemplated by this
Agreement. 
 ARTICLE VIII 
 SURVIVAL AND INDEMNIFICATION 
 8.01 Survival of Representations and
Warranties. The representations and warranties of the parties in Article III of this Agreement will survive the Closing and will expire on the twelve (12) month anniversary of the Closing Date. 

8.02 Indemnification by Sellers. Subject to the provisions of this Article VIII, Sellers will indemnify, defend, and hold harmless
Purchaser and its Affiliates (collectively, with Purchaser, the “Purchaser Indemnified Parties”) from and against any and all Losses actually 

  
 20 

 
incurred by any Purchaser Indemnified Party as a result of (or arising from) any breach by Sellers of any of the representations and warranties of Sellers set forth in Section 3.01 hereof,
and/or any covenants of Sellers set forth in this Agreement. Notwithstanding the foregoing, in no event shall any Purchaser Indemnified Party have a right to be indemnified for any Losses relating to Sellers’ breach of any representations or
warranties hereunder if any Purchaser Indemnified Party had knowledge of the applicable breach (resulting in such Losses) at the time of Closing. 
 8.03 Indemnification by Purchaser. Subject to the provisions of this Article VIII, Purchaser will indemnify, defend, and hold harmless Sellers and their respective Affiliates (collectively, with
Sellers, the “Seller Indemnified Parties”) from and against any and all Losses actually incurred by any Seller Indemnified Party as a result of (or arising from) any breach by Purchaser of any of the representations and warranties
of Purchaser set forth in Section 3.02 hereof, and/or any covenants of Purchaser set forth in this Agreement. Notwithstanding the foregoing, in no event shall any Seller Indemnified Party have a right to be indemnified for any Losses relating
to Purchaser’s breach of any representations or warranties hereunder if any Seller Indemnified Party had knowledge of the applicable breach (resulting in such Losses) at the time of Closing. 

8.04 Loss Mitigation. Any party entitled to receive indemnification under this Agreement (the “Indemnitee”) will
use commercially reasonable efforts to mitigate any indemnifiable Losses, including by using commercially reasonable efforts to recover otherwise indemnifiable Losses from insurers of the Indemnitee under applicable insurance policies so as to
reduce the amount of any indemnifiable Loss hereunder, and will not take any action specifically excluding from any of its insurance policies any otherwise indemnifiable Losses if losses of such type are otherwise covered by such policies. The
amount of any indemnifiable Loss will be reduced (a) to the extent that the Indemnitee receives any insurance or any other proceeds with respect to an otherwise indemnifiable Loss, and (b) to take into account any net Tax benefits
recognized by the Indemnitee arising from the recognition of the indemnifiable Loss. 
 8.05 Indemnity Procedures. In the
event that the Indemnitee becomes aware of a claim for which it may be entitled to indemnification hereunder, such Indemnitee will promptly notify the other party (the “Indemnitor”), describing the claim in reasonable detail and
indicating the estimated amount, to the extent practicable, of the indemnifiable Loss that the Indemnitee claims it has sustained or may sustain. The Indemnitor, at its sole cost and expense, will have the right, upon written notice to the
Indemnitee delivered within fifteen (15) business days following its receipt of such notice from the Indemnitee, to retain counsel and conduct the defense of the claim (which defense shall be undertaken in good faith and using commercially
reasonable efforts), while reserving its right to contest the issue of whether it is liable to the Indemnitee for any indemnification hereunder. If the Indemnitor elects to conduct the defense of the claim, the Indemnitee will cooperate fully with
respect thereto, and the costs of any separate counsel retained by the Indemnitee will be borne solely by the Indemnitee. In the event the Indemnitor fails to respond to the written notice of a claim, or refuses to retain counsel and conduct the
defense of the claim, the Indemnitee may retain counsel and conduct the defense of the claim, and the Indemnitor will be liable for all reasonable defense costs (including reasonable attorneys’ fees) to the extent the Indemnitor is otherwise
obligated hereunder to indemnify the Indemnitee 

  
 21 

 
with respect to such claim. In connection with any claim for which the Indemnitor exercises its right hereunder to conduct the defense of such claim, the Indemnitor will have full authority to
make all decisions and determine all actions to be taken with respect to the defense and settlement of the claim, including the right to pay, compromise, settle, or otherwise dispose of the claim at the Indemnitor’s expense; provided that any
such settlement will be subject to the prior consent of the Indemnitee, which will not be unreasonably withheld or delayed, if the settlement involves relief other than or in addition to the payment of money. A failure to give timely notice under
this Section 8.05 will affect the rights and obligations of a party hereunder only to the extent that, as a result of such failure, the party entitled to receive the notice was actually prejudiced as a result of such failure; provided,
however, that in no event will a claim for indemnification be valid if made after the expiration of the applicable survival period set forth in Section 8.01. 
 8.06 Limitations of Liability. To the extent that Sellers have any obligations or liabilities for indemnifiable Losses hereunder, recourse for enforcement of such obligations or liabilities (if
any) shall be limited to the sum of $1,000,000, and no action may be taken with respect to any greater amounts. In no event shall Sellers have any obligation or liability for indemnifiable Losses unless and until the aggregate amount of such Losses
exceeds $50,000, at which point the Purchaser Indemnified Parties shall be entitled to indemnification hereunder for the amount of Losses (subject to the preceding sentence). Notwithstanding anything in this Agreement to the contrary, in no event
shall Losses include (a) punitive, indirect, consequential, special or speculative damages, or (b) amounts measured by, or related to, lost profits, lost opportunities, or similar terms. Nothing in this Agreement shall permit any Person to
recover more than the actual amount of damages incurred by such Person, even if such damages arise from the breach of more than one representation, warranty or covenant. 
 8.07 Applicability. For the avoidance of doubt, (a) the obligations and covenants contained in this Article VIII survive the Closing, (b) the remedies and obligations under this Article
VIII apply after the Closing only, (c) prior to the Closing, or in the event that this Agreement is terminated, the parties’ remedies will be determined by applicable Law and the provisions of Article VII, and (d) after the Closing,
the sole and exclusive remedy (except as set forth in Section 4.05(b) hereof) for any breach or alleged breach of any representation, warranty, or covenant under this Agreement will be indemnification in accordance with, and subject to the
limitations of, this Article VIII. 
 8.08 No Reliance. 

(a) Purchaser acknowledges that (i) no Seller is making (or has made) any representation or warranty, express or implied, in
connection with the transactions contemplated in (and the subject matter of) this Agreement, except as set forth in Section 3.01 of this Agreement, and (ii) Purchaser is not relying (and has not relied) upon any representations or
warranties, express or implied, made by any other Person in connection with the transactions contemplated in (and the subject matter of) this Agreement. 
 (b) Each Seller acknowledges that (i) Purchaser is not making (nor has it made) any representation or warranty, express or implied, in connection with the transactions contemplated in (and the
subject matter of) this Agreement, except as set forth in Section 3.02 of 

  
 22 

 
this Agreement, and (ii) such Seller is not relying (and has not relied) upon any representations or warranties, express or implied, made by any other Person in connection with the
transactions contemplated in (and the subject matter of) this Agreement. 
 8.09 Indemnity Escrow. The initial source for
Purchaser Indemnified Parties to recover Losses for which they are entitled to be indemnified under this Article VIII shall be from the Indemnity Escrow Account (as defined in the OTA), subject to and in accordance with the provisions of
Section 5.09 of the OTA. 
 ARTICLE IX 
 MISCELLANEOUS 
 9.01 Assignment. This Agreement may not be assigned
by either party without the prior written consent of the other party. Notwithstanding the foregoing, Purchaser shall have the option, exercisable by giving written notice to Sellers prior to the Closing, of assigning its rights under this Agreement
to one or more Affiliates of Purchaser formed for the sole purpose of acquiring the Facilities; provided, however, that Purchaser shall not be released in any way from, and shall remain responsible for, its obligations under this
Agreement and shall execute such documents as Sellers shall reasonably request to affirm its obligations hereunder; provided, further, that any assignee of Purchaser shall become a party to and bound by the terms of the Escrow
Agreement. Sellers shall reasonably cooperate with Purchaser and execute such documents as are reasonably necessary for Purchaser to effect such assignment; provided, however, that: (a) Sellers shall not be obligated to incur any
additional expense as a result of such assignment; and (b) Purchaser shall indemnify Sellers against any costs or losses arising as a result of, or in connection with, such assignment. 

9.02 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Arkansas, without regard to
conflicts of law rules or principles. 
 9.03 Notices. Any notice, demand, waiver, or consent required or permitted
hereunder shall be in writing and shall be given by email (receipt confirmed), by prepaid registered or certified mail, with return receipt requested, or by a national overnight courier service, addressed as follows: 

 

			
	 If to Sellers:
	  	 Perennial Healthcare Management, LLC
 Executive Plaza III
 11350 McCormick Road, Suite 503

Hunt Valley, MD 21031
 Attn: Mr. V. James
Santarsiero
 Email: JSantarsiero@PerennialHealth.com

		
	 With a copy to:
	  	 Venable LLP
 750 E. Pratt
Street, Suite 900
 Baltimore, MD 21202

Attn: Thomas E. D. Millspaugh , Esq.
 Email:
TEMillspaugh@Venable.com

  
 23 

			
	 If to Purchaser:
	  	 CHP Partners, LP
 c/o CNL
Healthcare Trust, Inc.
 450 South Orange Avenue, Suite 1200
 Orlando, Florida 32801
 Attention: Tracey Bracco, Esquire

E-Mail: Tracey.Bracco@cnl.com

		
	 With a copy to:
	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
 215 North Eola Drive
 Orlando, Florida 32801

Attention: John D. Ruffier, Esquire
 E-Mail:
John.Ruffier@lowndes-law.com

 All such notices shall be effective upon receipt or refusal of delivery, whichever shall occur first. Any
party may change its address for the purpose of notice by giving written notice in accordance with the provisions of this Section. 
 9.04 Construction. This Agreement shall be construed as the joint and equal work product of each party and shall not be construed more or less favorably on account of its preparation or drafting.
The article and section headings of this Agreement are for convenience of reference only and may not be utilized in construing or interpreting this Agreement. 
 9.05 Waivers. Any waiver by either party of any violation of, breach of, or default under any provision of this Agreement or any exhibit, schedule, or other document referred to in this Agreement
by the other party shall be effective only if in writing signed by the applicable party, and shall not be construed as or constitute a waiver of any subsequent violation, breach of, or default under that provision or any other provision of this
Agreement or any other document referred to in this Agreement. 
 9.06 Further Assurances. Each party shall, at any time
and from time to time after the Closing, execute and deliver, or cause to be executed and delivered, such further consents, approvals, conveyances, assignments, and other documents and instruments as the other party shall reasonably request in order
to carry out any of the terms and provisions of this Agreement. 
 9.07 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 9.08 Attorneys’ Fees. Each party shall bear its own direct and indirect expenses, including attorneys’ fees, incurred in connection with the negotiation and preparation of this Agreement
and the consummation and performance of the transactions contemplated hereby, except as otherwise provided herein. In the event of any dispute among the parties in connection with this Agreement, the prevailing party shall be entitled to an award of
reasonable attorneys’ fees in addition to any other amounts awarded. 
 9.09 Waiver of Trial by Jury. Each party
waives trial by jury with respect to any dispute regarding or arising under this Agreement. 

  
 24 

 9.10 Limitation of Claims. No statutory or other legal rights under federal, state or
local Laws shall apply between the parties with respect to the Assets and the transactions contemplated by this Agreement, and the parties are liable only pursuant to the covenants, representations and/or warranties expressly stated in this
Agreement and no other agreements or Laws. Without limiting the foregoing, upon closing hereunder, Purchaser shall be deemed to have automatically released and discharged forever each Seller and all employees, officers, directors, trustees, members,
managers, partners and Affiliates of each Seller, as well as any other agents of each Seller, from any and all demands, claims, legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens, judgments, costs or expenses
whatsoever (including but not limited to court costs and attorneys’ fees and disbursements), whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise on account of or in any way be connected with (i) the
physical condition of the Assets including, without limitation, all structural and seismic elements, all mechanical, electrical, plumbing, sewage, heating, ventilating, air conditioning and other systems, the environmental condition of the Assets
and the presence of hazardous or dangerous materials or substances on, under or about the Assets, or (ii) any Law applicable to the Assets , including but not limited to any Environmental Laws, any zoning Laws, building codes or other
regulations, and any other federal, state or local Law. 
 9.11 Third Parties. Nothing in this Agreement, whether
expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Persons other than the parties hereto (and, in accordance with Article VIII hereof, Seller Indemnified Parties and Purchaser Indemnified
Parties) and the parties’ respective legal representatives, successors, and permitted assigns. Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third Person to any party to this Agreement, nor
shall any provision give any third Person any right of subrogation or action over or against any party to this Agreement. 

9.12 General Construction. The word “including” means “including without limitation.” Words such as
“herein,” “hereof,” “hereby,” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular Section or Subsection of this Agreement. 

9.13 Entire Agreement. This Agreement (including all schedules and exhibits attached hereto (other than the OTA) and all other
documents executed in connection herewith and pursuant to the terms and conditions hereof) constitutes the entire contract between the parties relating to the transactions contemplated hereby, may not be modified except by an instrument in writing
and signed by both of them, and supersedes and replaces all prior agreements and understandings, oral or written, with regard to such transactions; provided, however, that the Letter of Intent shall continue in full force and effect in
accordance with its terms except to the extent any such term conflicts with this Agreement, in which case, the terms of this Agreement shall control. 
 9.14 Post-Closing Information. From time to time after the Closing, each party shall deliver to the other party such information and data as the other party may reasonably request, including
information or data that is required to enable the requesting party to complete and file all federal, state, and local forms that may be required to be filed by it and to complete all 

  
 25 

 
customary Tax and accounting procedures and otherwise to enable the requesting party to satisfy its reasonable internal accounting, Tax, and other requirements or to otherwise respond to any
claim, litigation, government investigation, or other matter for which the requesting party has liability hereunder. 
 9.15
Publicity. Any publicity prior to Closing relating to the transactions contemplated by this Agreement and the method of its release shall be approved in writing by Sellers and Purchaser, and no publicity shall be released without such joint
approval, unless otherwise required by Law. Sellers acknowledge that Purchaser will be required to make certain securities-law related disclosures in connection with this transaction, which are hereby consented to and approved. 

9.16 Like-Kind Exchange. Each Seller and Purchaser shall each have an option of effecting a Section 1031 like-kind exchange
of any part of its interest in the Assets by assigning its rights in this Agreement to a qualified third party intermediary; provided, however, that: (a) the assigning party (the “Assignor”) may only exercise this
option by giving written notice to the other party to the Agreement (the “Other Party”); (b) Assignor shall remain responsible for its obligations under the Agreement; and (c) Assignor shall execute such documents as Other
Party shall reasonably request to affirm its obligations thereunder. Other Party shall reasonably cooperate with Assignor and execute such documents as are reasonably necessary for Assignor to effect such an exchange; provided,
however, that: (x) Other Party shall not be obligated to incur any additional expense as a direct result thereof; and (y) Assignor shall indemnify Other Party against any costs or losses arising as a result of, or in connection
with, such an exchange. 
 9.17 Timing. The phrase “business days” as used herein shall mean the days of Monday
through Friday, excepting only federal holidays. The phrase “calendar days” as used herein shall mean all days of the week, including all holidays. The term “days” without reference to calendar or business days shall mean
calendar days. Time is of the essence of this Agreement. 
 [Signature Pages Follow] 

  
 26 

 IN WITNESS WHEREOF, Sellers have executed this Agreement on the Effective Date.

  

					
	BHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager
	
	WHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager
	
	SHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager
	
	NHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager

  
 27 

					
	MHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager
	
	JHC PROPERTIES, LLC,
	an Arkansas limited liability company
		
	By:	 	JSJB PROPERTIES, LLC,
		 	a Delaware limited liability company,
		 	its Manager
			
		 	By:	 	 /s/ V. James Santarsiero

		 		 	V. James Santarsiero
		 	Title:	 	Manager

  
 28 

							
	 IN WITNESS WHEREOF, Purchaser has executed this Agreement on the Effective Date.

	
	CHP PARTNERS, LP, a Delaware limited partnership
		
	 By:
	 	CHP GP, LLC, a Delaware limited liability company, its General Partner
			
		 	 By:
	 	CNL Healthcare Properties, Inc., a Maryland corporation, its sole member
				
		 		 	 By:
	 	 /s/ Tracey Bracco

		 		 	 Name:
	 	Tracey Bracco
		 		 	 Title:
	 	Vice President

  
 29 

 NEW OPERATOR PARENT HEREBY CONFIRMS, ON BEHALF OF ITSELF, ITS SUCCESSORS AND ASSIGNS, THAT IT IS BOUND BY
THE PROVISONS OF SECTION 6.05 OF THIS AGREEMENT. 
  

			
	ARKANSAS SNF OPERATIONS ACQUISITION III, LLC,
	a Delaware limited liability company
		
	By:	 	 /s/ Brian Reynolds

		 	Name: Brian Reynolds
		 	Title: Manager

 ASSET PURCHASE AGREEMENT 

Exhibit A 
 Facilities 
 [Intentionally Omitted] 

ASSET PURCHASE AGREEMENT 
 Exhibit B 
 Assets 

[Intentionally Omitted] 
 ASSET PURCHASE AGREEMENT 
 Exhibit B-1 

Legal Descriptions 
 [Intentionally Omitted] 
 ASSET PURCHASE AGREEMENT 

Exhibit C 
 Assumed Liabilities 
 [Intentionally Omitted] 

ASSET PURCHASE AGREEMENT 
 Exhibit D 
 Form of Operations Transfer Agreement

 [Intentionally Omitted] 

 ASSET PURCHASE AGREEMENT 

Schedule 1.01 
 Excluded Assets 
 [Intentionally Omitted] 

ASSET PURCHASE AGREEMENT 
 Schedule 3.01(c) 
 Seller Required Consents 

[Intentionally Omitted] 
 ASSET PURCHASE AGREEMENT 
 Schedule 3.01(e) 

Litigation 
 [Intentionally Omitted] 
 ASSET PURCHASE AGREEMENT 

Schedule 3.01(f) 
 Licenses 
 [Intentionally Omitted] 

ASSET PURCHASE AGREEMENT 
 Schedule 3.02(c) 
 Purchaser Required Consents

 [Intentionally Omitted] 
 ASSET PURCHASE AGREEMENT 
 Schedule 4.02 

Operations Outside of the Ordinary Course 
 [Intentionally Omitted]

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