AMENDMENT TO AMENDED AGREEMENT OF LIMITED PARTNERSHIP

OF

SUNWOOD VILLAGE JOINT VENTURE, LIMITED PARTNERSHIP

 

This Amendment (“Amendment”) to Amended Agreement of Limited Partnership of Sunwood Village Joint Venture, Limited Partnership (the “Partnership” or “Sunwood”) is made and entered into as of June 6, 2005, by and among Millenium Management, LLC, a California limited liability company (“Millenium” or “General Partner”), Secured Investment Resources Fund, L.P. II (“SIR-2”), Keith A. Kohorst, David I. Lesser and Continental American Properties, Ltd. (“Con-Am).

 

RECITALS

 

|   | A. | The Amended Agreement of Limited Partnership of Sunwood Village Joint Venture, Limited Partnership (“Sunwood LPA”) was made and entered into on August 9, 2001, and Section 2.3 thereof incorporates by reference the provisions of the Amended and Restated Agreement of Limited Partnership of Secured Investment Resources Fund, L.P. II, dated September 25, 1986. |
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|   | B. | On or about August 1, 2001, Sunwood entered into certain loan agreements, including a Promissory Note in the amount of $10,080,000 (“Loan”), which Loan is now held by Wells Fargo Bank; with LNR Partners as the Special Servicer of the Loan and Wachovia Bank, N.A. as the Master Servicer of the Loan (Wells Fargo, LNR and Wachovia are referred to collectively as “Lender”). |
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|   | C. | A dispute arose between Sunwood and Lender regarding the amount of money owing from Sunwood to Lender. |
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|   | D. | Sunwood and Lender entered into a Settlement Agreement dated June 6, 2005, whereby Sunwood agreed to pay Lender, and Lender agreed to accept, the sum of $800,000 (“Settlement Payment”) in settlement of the dispute, and Lender consented to Millenium as the new General Partner of Sunwood, and to ConAm Management Corporation as the new property manager of Sunwood Village. |
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|   | E. | Millenium, Con-Am, Keith A. Kohorst, and David I. Lesser (referred to hereafter as the “Class A Limited Partners”) have agreed to fund the Settlement Payment plus additional amounts as a Capital Contribution (the “Settlement Capital Contribution”) in exchange for Class A Partnership Interests in Sunwood. |
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|   | F. | Any capitalized terms not defined herein shall have the meanings ascribed to such terms in the Sunwood LPA. |
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