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Exhibit 10.24

January 28, 2013

VIA EMAIL:  jbuono@alcco.com
and mzakkowalczyk@ALCCO.com
and VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED

Texas ALC Partners, L.P.
ALC Properties, Inc.
Assisted Living Concepts, Inc.
c/o Assisted Living Concepts, Inc.
Attn:  Mary T. Zak-Kowalcczyk, Secretary
Attn:  John Buono, Chief Financial Officer
W140 N 8981 Lilly Rd
Menomonee Falls, WI 53051

 
RE:
Fannie Mae Mortgage Loan Number 27-0002463 (“Mortgage Loan”), secured by, inter
alia:

Chaparelle House, 1880 Harrison Street North, Twin Falls, Idaho 83301
(“Chaparelle House”);
Goldfinch House, 18 Reeves Road, Bridgetown, New Jersey (“Goldfinch House”);
Cameron House, 244 North Extension Road, Mesa, Arizona 85201
(“Cameron House”).  Chaparelle House, Goldfinch House, and Cameron House are
collectively, the “Mortgaged Property”.

Dear Borrower:

Reference is hereby made to the $38,400,000 Multifamily Note dated December 29,
2003 (the “Note”), executed by Texas ALC Partners, L.P. and ALC Properties, Inc.
(together, the “Borrower”), payable to the order of Red Mortgage Capital, LLC,
f/k/a Red Mortgage Capital, Inc. (the “Servicer”).  The Note is secured by that
certain Multifamily Deed of Trust, Assignment of Rents, Security Agreement and
Fixture Filing dated December 29, 2003, and recorded, among other places, with
(a) the Recorder of Deeds of Twin Falls County, Idaho, as Instrument 2004-000845
(the “Chaparelle Security Instrument”); (b) the Recorder of Deeds of Cumberland
County, New Jersey, in Book 3254, Page 17 (the “Goldfinch Security Instrument”);
and (c) the Recorder of Deeds of Maricopa County, Arizona, at Instrument
#375004374 (the “Cameron Security Instrument”).  The Chaparelle Security
Instrument, the Goldfinch Security Instrument and the Cameron Security
Instrument are herein collectively, the “Security Instrument.”  The Servicer
assigned, negotiated and transferred the Note and the Security Instrument to
Fannie Mae, the current owner and holder of the Note and the Security Instrument
(“Fannie Mae”).

 
 

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ALC Properties, Inc.
Mary T. Zak-Kowalcczyk
John Buono
January 28, 2013

Reference is made to our letter to you dated August 24, 2012, as amended by our
letter to you dated December 20, 2012, both as accepted and agreed by Texas ALC
Partners, L.P.; ALC Partners, Inc.; and Assisted Living Concepts, Inc.
(together, the “Previous Letters”) whereby Fannie Mae agreed to forbear from
exercising any of its rights on account of the Existing Defaults, in exchange
for your prepayment as aforesaid on all three (3) of the above-described
properties by the earlier to occur of (a) January 31, 2013, or (b) the Closing
(as defined in the Previous Letters).  Capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to them in the Previous
Letters.

This letter hereby (i) extends the date by which the Mortgage Loan shall be
prepaid for Cameron House to February 28, 2013 and (ii) with the payment of a
$30,000 extension fee (the “Goldfinch Extension Fee”), extends the prepayment
date for the Mortgage Loan for Goldfinch House to no later than the earlier of
(a) June 30, 2013, or (b) the Closing; provided, however, that if the Goldfinch
Extension Fee is not received on or before January 31, 2013, then the Mortgage
Loan for Goldfinch House must be repaid in full on January 31, 2013 per the
Previous Letters.  The Mortgage Loan will be prepaid for Chaparelle House on
January 31, 2013, per the Previous Letters; nothing in this letter changes the
prepayment date for the Mortgage Loan for Chaparelle House.

Should we not timely receive sums sufficient to pay off the portions of the Note
attributable to the Mortgaged Property as set forth in this letter and the
Previous Letters, then the forbearance described in this letter and the Previous
Letters shall be null and void, and we shall, at our option, proceed against any
or all of the properties securing the Mortgage Loan, whether against the
Mortgaged Property herein defined or otherwise under the Loan Documents, and in
addition thereto, we may at our option proceed to exercise any or all of our
rights at law, in equity, and under the Loan Documents, including, without
limitation, the right to accelerate the Note.

Except as otherwise specifically modified hereby, the terms and conditions of
the Previous Letters shall remain in full force and effect and are hereby
reaffirmed and ratified.

Nothing contained herein shall be deemed to cure the Existing Defaults or waive
any of the Lender’s rights and remedies arising because of the Borrower’s
Existing Defaults.  Rather, the Existing Defaults and Servicer’s rights and
remedies arising therefrom on behalf of Fannie Mae are hereby
preserved.  However, if all of the conditions set forth in the Previous Letters,
as further amended hereby, are fully and timely satisfied, for so long as no
Event of Default other than the Existing Defaults occur, the Servicer on behalf
of Fannie Mae agrees to forbear from exercising the rights and remedies which it
is entitled to exercise as a result of the Existing Defaults with respect to the
Borrower, the Key Principal and/or their assets.  However, if an Event of
Default occurs other than the Existing Defaults, the Servicer shall immediately
be entitled to exercise and enforce all rights and remedies which are available
to the lender under any of the Loan Documents, at law or in equity.

TIME IS STRICTLY OF THE ESSENCE AS TO ALL OF THE OBLIGATIONS OF THE BORROWER
HEREUNDER.

 
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ALC Properties, Inc.
Mary T. Zak-Kowalcczyk
John Buono
January 28, 2013

Please evidence your agreement to the terms hereof by your signatures below, and
return a fully executed copy of this letter to the undersigned.  This letter
agreement shall not be binding on Servicer or Fannie Mae unless and until a
fully-executed copy is returned to the Undersigned.

Sincerely,

RED MORTGAGE CAPITAL, LLC,
a Delaware limited liability company

By:
/s/ William R. Koerner
 
Name:
William R. Koerner
 
Title:
Managing Director, Loan Intervention & Risk Mitigation
 

[Signatures of Borrower and Key Principal on Following Page]

 
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Accepted and agreed to:

TEXAS ALC PARTNERS, L.P.
       
By:
/s/ John Buono
 
Name:
John Buono
 
Title:
Sr. VP
       
ALC PARTNERS, INC.
       
By:
/s/ John Buono
 
Name:
John Buono
 
Title:
Sr. VP
       
ASSISTED LIVING CONCEPTS, INC.
       
By:
/s/ John Buono
 
Name:
John Buono
 
Title:
Sr. VP
 

 
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