Document:

Exhibit 10.151

 

SUBORDINATION AGREEMENT

(AdCare)

 

THIS SUBORDINATION AGREEMENT (the “Agreement”) is made as of October 29, 2010, by “Triad Entities”), ADCARE HEALTH SYSTEMS INC., an Ohio corporation (“Guarantor”), ADK BONTERRA/PARKVIEW, LLC, a Georgia limited liability company (“Lessee”), on their behalf and on behalf of all Affiliates of Lessee and Guarantor (as that term is defined below - each a “AdCare Affiliate” and, collectively, the “AdCare Affiliates”), in favor of GEORGIA LESSOR — BONTERRA/PARKVIEW, INC., a Maryland corporation (“Lessor”).

 

RECITALS

 

A.                                   Lessee and Lessor have entered into to a Third Amended and Restated Master Lease dated the same date as this Agreement (the “Master Lease”) pursuant to which Lessee is leasing from Lessor certain healthcare facilities identified in the Master Lease (each a “Facility” and collectively, the “Facilities”).  Capitalized terms used but not otherwise defined in this Agreement shall have the respective meanings given them in the Master Lease.

 

B.                                     Guarantor is under common control with Lessee and will benefit from the entry by Lessor into the Master Lease and the other Transaction Documents (as defined in the Master Lease).  Lessee and Guarantor are each referred to in this Agreement as an “Obligor” and, collectively, as the “Obligors”.

 

C.                                     In consideration of the benefits that the AdCare Affiliates acknowledge will inure to them on account of Lessor’s agreement to enter into the Master Lease and the other Transaction Documents, and as an inducement to Lessor to do so, the AdCare Affiliates agree to subordinate, to the extent and in the manner hereinafter set forth, all indebtedness and obligations of the Obligors to each other and to the other AdCare Affiliates to the obligations of the Obligors to Lessor.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the AdCare Affiliates and Lessor hereby agree as follows:

 

1.                                       As used herein:

 

(a)                                  “Senior Obligations” means all indebtedness and obligations of the Obligors to Lessor or any of its Affiliates under the Master Lease, the other Transaction Documents or otherwise.  The Senior Obligations include, but shall not be limited to, all payments of rent, additional, expenses, fees, principal, interest and other charges due Lessor from the Obligors and every subsequent amendment, extension or renewal, of the Master Lease and the other the Transaction Documents in whole or in part (the “Transaction Obligations”), all Transaction Obligations from time to time after the commencement of any Proceeding, whether or not such Transaction Obligations are allowable as a claim in such Proceeding, and all Transaction Obligations made after the commencement of a Proceeding.

 

(b)                                 “Junior Obligations” means all indebtedness and obligations of an Obligor to any AdCare Affiliate, individually or with others, and whether now existing or

 

 

hereafter incurred, including, but not limited to, all indebtedness or other obligations accruing from time to time after the commencement of any Proceeding, whether or not such indebtedness or obligation is allowable as a claim in such Proceeding, and all other amounts arising thereunder after the commencement of a Proceeding.

 

(c)                                  “Proceeding” means any assignment by an Obligor for the benefit of creditors, or any filing of a voluntary case by, or of an involuntary case against, an Obligor pursuant to any chapter of the federal bankruptcy code, 11 USC Section 101, et seq., as may be amended from time to time, or any institution of a voluntary proceeding by, or of an involuntary proceeding against, an Obligor under any other federal or state law relating to relief of debtors, or any appointment of a receiver, trustee or liquidator of an Obligor or of all or a substantial part of any of its assets under any other federal or state law relating to relief of debtors, or any liquidation or dissolution of an Obligor, or any foreclosure or similar action or proceeding and/or any other marshaling of an Obligor’s assets and liabilities.

 

(d)                                 “Affiliate” means, when used with respect to any corporation, limited liability company or partnership, any person who directly or indirectly controls or is controlled by or is under common control with such corporation, limited liability company or partnership.  For the purposes of this definition, “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, through the majority ownership of voting securities, partnership interests or other equity interests.  The term “person” shall mean any natural person, trust, partnership, corporation, joint venture or other legal entity.

 

2.                                       The AdCare Affiliates, for themselves, their successors and assigns and every other holder of the Junior Obligations, hereby subordinates the payment and satisfaction of the Junior Obligations to the prior payment and satisfaction in full of the Senior Obligations.

 

3.                                       After the occurrence of an Event of Default under the Master Lease or the other Transaction Documents and while it is continuing, the AdCare Affiliates will not, without first obtaining the written consent of Lessor:  (i) accept any security for the Junior Obligations or any part thereof; (ii) take any action of any kind to accelerate, assert, collect or enforce the Junior Obligations or any guaranty thereof;  or (iii) accept any note or other writing to evidence the Junior Obligations or any part thereof.

 

4.                                       During any period in which an Obligor is in default under the Master Lease or the other Transaction Documents, (i) the AdCare Affiliates will not demand or accept, directly or indirectly, any payment or property in respect or on account of the Junior Obligations; and (ii) the Obligors agree that they will not directly or indirectly make payments to the AdCare Affiliates on the Junior Obligations, whether in cash or any other property.

 

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5.                                       Any payment of cash or transfer of property in violation of this Agreement will be deemed to have been made or transferred in trust for Lessor, and the AdCare Affiliates will forthwith pay or transfer the same to Lessor, in precisely the form received (but with such endorsements as may be necessary), to be applied upon the Senior Obligations.

 

6.                                       In any Proceeding, the AdCare Affiliates shall have the right to prepare and file a proof of claim, answer or other pleading based upon the Junior Obligations, but in all such instances giving effect to this instrument, and to enforce and use the same, provided that if the AdCare Affiliates shall fail to file such proof of claim, answer or other pleading on or before the 30th day preceding the last day permitted for such filing, Lessor shall have the right (but not the duty) to prepare and file a proof of claim, answer or other pleading based on the Junior Obligations and giving effect to this instrument.  To effectuate the foregoing, the AdCare Affiliates, and each holder of any of the Junior Obligations, hereby irrevocably authorizes and appoints Lessor, and each of its officers, its true and lawful attorney or attorneys, with full power of substitution and with full authority on behalf of the AdCare Affiliates, and each holder of any of the Junior Obligations, and in its name, place and stead, to prove all claims and to receive and collect all fees, expenses and other property to which the AdCare Affiliates or any of its assigns would be otherwise entitled, to accept or reject any plan or reorganization or arrangement, and generally to do any act in connection with any Proceeding that the AdCare Affiliates or any of its successors or assigns might otherwise do.

 

7.                                       Notwithstanding any rights of subrogation that the AdCare Affiliates may have to the rights of Lessor, the AdCare Affiliates agree that Lessor may make all determinations and take or omit to take all actions and exercise or refrain from exercising all remedies that Lessor may have with respect to collateral security for, or guaranties of, any of the Senior Obligations without any consultation with, or participation or joinder by, or any consideration of the interests of the AdCare Affiliates, and without any liability or loss of right or remedy to the AdCare Affiliates.

 

8.                                       To the extent that Lessor is required to restore or return any payment received by it from an Obligor or any other person for any reason, for the purposes of this Agreement, such payments shall be deemed never to have been made to Lessor.  As used in this Agreement the words “paid,” “paid in full,” “payment in full,” or similar phrases, when applied or relating to the Senior Obligations shall, in all instances, unless the context requires otherwise, be deemed to mean indefeasibly paid or indefeasible payment.

 

9.                                       The AdCare Affiliates consent and agree that until the payment in full of the Senior Obligations, the AdCare Affiliates will not sell, assign or otherwise transfer or encumber the Junior Obligations without the prior written consent of Lessor.  Any attempted sale, assignment, transfer or encumbrance in violation of the preceding sentence will be void and without force or effect.

 

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10.                                 In the event of any acceleration of the Senior Obligations pursuant to the terms of any agreement now or hereafter in effect between an Obligor and Lessor or any distribution of an Obligor’s assets of any kind or character, or any dissolution, winding-up, liquidation or reorganization of an Obligor (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise), the Senior Obligations shall be paid and satisfied in full before the holder of the Junior Obligations is entitled to receive any payment thereunder, and any payment or distribution to which the holder thereof would be entitled thereunder but for the subordination provisions hereof shall be paid directly to Lessor.

 

11.                                 Any notice, request or other communication to be given by any party hereunder shall be given as provided in the Master Lease with the AdCare Affiliates’ address being the same as the Lessee’s address.

 

12.                                 The AdCare Affiliates acknowledge and agree that (i) Lessor makes no representation or warranty to the AdCare Affiliates with respect to the value or adequacy of their collateral or otherwise, and (ii) without notice to the AdCare Affiliates, Lessor may (a) amend, renew, or extend the any of the Transaction Documents, (b) exercise, fail to exercise, waive or amend any of its rights under any of the Transaction Documents, (c) release collateral or any guarantor or other obligor of the Senior Obligations, and (d) apply any amounts paid to Lessor in such order of application as Lessor, in its sole discretion, deems appropriate.

 

13.                                 In the event of any amendment to the Master Lease or the other Transaction Documents, the AdCare Affiliates agree, from time to time upon the request of an Obligor or Lessor, to execute substitute subordination agreements substantively equivalent to this Agreement in favor of the Lessor.

 

14.                                 No amendment, modification, termination, or waiver of any provisions of this Agreement, nor consent to any variance therefrom, shall be effective unless the same shall be in writing and signed by the party against whom enforcement is sought.  Further, any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Lessor and the AdCare Affiliates may amend this Agreement in the manner provided above without the consent or approval of all AdCare Affiliates, and without impairing the obligation of a AdCare Affiliate which does not consent or approve to abide by all provisions hereof not so amended, but no such amendment shall be binding upon a AdCare Affiliate unless such AdCare Affiliate has approved same.

 

15.                                 In the event of any suit, action, arbitration or other proceeding to interpret this Agreement, or to determine or enforce any right or obligation created hereby, the prevailing party in the action shall recover such party’s actual costs and expenses reasonably incurred in connection therewith, including, but not limited to, attorneys’ fees and costs of appeal, post judgment enforcement proceedings (if any) and bankruptcy proceedings (if any).  Any court, arbitrator or panel of arbitrators shall, in entering any judgment or making any award in any such suit, action, arbitration or other proceeding, in addition to any and all other relief awarded to

 

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such prevailing party, include in such-judgment or award such party’s costs and expenses as provided in this section.

 

16.                                 The provisions of this Agreement shall be cumulative to the rights Lessor may otherwise have or acquire by operation of law, by contract, or otherwise.  This instrument shall be governed by and construed in accordance with the laws of the State of Maryland (excluding all Maryland conflicts of law principles or other principles of Maryland law that would result in the application of any substantive law, other than the law of Maryland) and shall bind the AdCare Affiliates and each other holder of all or any portion of the Junior Obligations, and their respective heirs, personal representatives, successors and assigns, and shall benefit no creditor of the AdCare Affiliates other than Lessor and its successors and assigns, including without limitation, other holders of all or any portion of the Senior Obligations.

 

Signatures appear on following page.

 

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Signature to

Subordination Agreement

(AdCare)

in favor of

GEORGIA LESSOR — BONTERRA/PARKVIEW, INC..

 

	
GUARANTOR:
    
	
 
    
	
 
    	
ADCARE   HEALTH SYSTEMS INC.,
    
	
 
    	
An   Ohio corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David A. Tenwick
    	
 
    
	
 
    	
 
    	
David   A. Tenwick, Chairman
    	
 
    
	
 
    	
 
    
	
LESSEE:
    	
 
    
	
 
    	
 
    
	
 
    	
ADK   BONTERRA/PARKVIEW, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
Chris   Brodgon
    	
 
    
	
 
    	
Title:
    	
Manager
    	
 
    

 

	
STATE   OF OHIO
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF DELAWARE
    	
)
    

 

The foregoing instrument was acknowledged before me this 29th day of October, 2010, by David A. Tenwick, who is the Secretary of AdCare health Systems, Inc., on behalf of such corporation.

 

	
 
    	
/s/   Amanda R. Norris
    
	
 
    	
Notary   Public, Marion County, Ohio
    
	
 
    	
My   Commission Expires: April 1, 2015
    

 

1

 

Signature to

Subordination Agreement

(AdCare)

in favor of

GEORGIA LESSOR — BONTERRA/PARKVIEW, INC..

 

	
GUARANTOR:
    
	
 
    
	
 
    	
ADCARE   HEALTH SYSTEMS INC.,
    
	
 
    	
An   Ohio corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
David   A. Tenwick, Chairman
    	
 
    
	
 
    	
 
    
	
LESSEE:
    	
 
    
	
 
    	
 
    
	
 
    	
ADK   BONTERRA/PARKVIEW, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chris Brogdon
    	
 
    
	
 
    	
Name:
    	
Chris   Brodgon
    	
 
    
	
 
    	
Title:
    	
Manager
    	
 
    

 

	
STATE   OF GEORGIA
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF COBB
    	
)
    

 

The foregoing instrument was acknowledged before me this 28th day of October, 2010, by Chris Brogdon, who is the Manager of ADK BONTERRA/PARKVIEW, LLC on behalf of each such company.

 

	
 
    	
/s/   Damaris Marriaga
    
	
 
    	
Notary   Public, Fayette County, Georgia
    
	
 
    	
My   Commission Expires: March 6, 2011
    

 

1Exhibit 10.152

 

LETTER OF CREDIT AGREEMENT

(AdCare)

 

THIS LETTER OF CREDIT AGREEMENT  (the “Agreement”), made and entered into as of October 29, 2010 by and between GEORGIA LESSOR — BONTERRA/PARKVIEW, INC., a Maryland corporation (“Lessor”), and ADK BONTERRA/PARKVIEW, LLC, a Georgia limited liability company (“Lessee”).

 

RECITALS:

 

A.                                   Lessee has leased the Facilities from Lessor pursuant to a Third Amended and Restated Master Lease with Lessor dated as of the date of this Agreement (as amended, the “Master Lease”).

 

B.                                     Pursuant to the Master Lease, Lessee agreed to deliver the security deposit (the “Security Deposit”) referred to in the Master Lease in the amount of Three Hundred Seventy Five Thousand and 00/100 Dollars ($375,000) (the “Letter of Credit Amount”).

 

C.                                     As of the date of this Agreement, Lessee is fulfilling its obligations by funding the Security Deposit by depositing cash with Lessor on the terms and conditions hereinafter set forth in this Agreement and the Master Lease.

 

D.                                    Under the Master Lease, Lessee may at a future date fulfill the requirement by delivering a Letter of Credit on the terms and conditions hereinafter set forth in this Agreement and the Master Lease.

 

NOW, THEREFORE, in order to induce Lessor to enter into the Assignment & Assumption Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                                       Definitions.  Terms used but not otherwise defined in this Agreement shall have the respective meanings given them in the Master Lease.  In addition, the following terms used in this Agreement shall have the meanings set forth below:

 

“Bank” means a commercial bank that has a rating of “A” or better by Standard & Poor’s Corporation or Moody’s Investors Service, or similar, nationally recognized, credit rating agency, and that serves as the issuer of the Letter of Credit.

 

“Facilities” means the skilled nursing facilities set forth on Exhibit A attached hereto.

 

“Letter of Credit” means an irrevocable letter of credit that (a) is issued by a Bank in the form of attached Exhibit B (with such changes thereto as Lessor may approve in its sole discretion), (b) names Lessor and its assigns as beneficiary and (c) is delivered by Lessee to Lessor pursuant to this Agreement, together with any and all substitutes and replacements for such irrevocable letter of credit.  The form of Letter of Credit delivered to Lessor by Lessee on the date of this Agreement has been approved by Lessor.

 

 

2.                                       Letter of Credit.  Concurrently with the execution of this Agreement, Lessee shall deliver or cause to be delivered to Lessor cash in the Letter of Credit Amount.  If, at any time hereafter, the cash Security Deposit is to be replaced by a Letter of Credit, such replacement Letter of Credit shall be issued by a Bank.  The term of the Letter of Credit shall be for a minimum of one (1) year.  The Letter of Credit shall contain a provision providing for the automatic renewal of the Letter of Credit for additional periods of one (1) year in the Letter of Credit Amount; however, to the extent permitted by the Master Lease, if Lessee, before the expiration of the Letter of Credit, provides to Lessor, pursuant to the Master Lease, a cash Security Deposit or a separate replacement Letter of Credit in an amount equal to all or any portion of the Letter of Credit Amount, then the automatic renewal of the Letter of Credit shall be in an amount equal to the difference, if any, between the Letter of Credit Amount and the sum of the cash Security Deposits and/or substitute Letter of Credits provided to Lessor by Lessee pursuant to the Master Lease.

 

3.                                       Replacement or Substitution of Letter of Credit.  If Lessor reasonably determines that the credit rating of the Bank (or its holding company) has been reduced by one or more nationally recognized credit rating agencies to a level lower than such agency’s or agencies’ “A” rating, then at any time thereafter Lessor may give notice of such event to Lessee.  Within thirty (30) days of the delivery of such notice by Lessor, Lessee shall deliver or cause to be delivered to Lessor (a) a replacement Letter of Credit in the Letter of Credit Amount that has an expiration date that is at least twelve (12) months after the scheduled expiration date of the then unacceptable Letter of Credit or an expiration date that otherwise is acceptable to Lessor in its sole discretion or (b) to the extent permitted under the Master Lease, a cash Security Deposit in the Letter of Credit Amount.  Lessor hereby approves the delivery of a Letter of Credit from First Republic Bank (Lessee having informed Lessor that it currently holds an “AA-” rating); provided, however, that such approval does not preclude Lessor from exercising its rights under this Section if the rating of First Republic Bank is reduced.

 

4.                                       Drafts under the Letter of Credit.  Lessor shall have the right to draw upon any Letter of Credit provided by Lessee to Lessor at any time from and after (i) a failure by Lessee to deliver to Lessor, when and if required by Section 3 of this Agreement, a cash Security Deposit and/or a replacement Letter of Credit in an aggregate amount equal to the Letter of Credit Amount; or (ii) Lessor’s receipt of a notice of non-renewal from the issuer of the Letter of Credit; or (iii) the expiration or termination of the Term of the Master Lease if any amount remains owing from Lessee under the Master Lease; or (iv) the occurrence of an Event of Default under the Master Lease.  Lessor shall provide Lessee with notice of any drawing under a Letter of Credit after any drawing has been made, but the giving of any such notice shall not be a condition to the making of a draw under any Letter of Credit.  The Letter of Credit shall permit Lessor to make multiple draws from time to time, provided that the total of such draws shall not exceed the Letter of Credit Amount.

 

5.                                       Application of Amounts Drawn Under Letter of Credit.  Lessor shall apply the amounts drawn under the Letter of Credit to pay Rent, Additional Charges and any other sums due under the Master Lease, the other Transaction Documents and any notes, obligations, leases or agreements which are cross-defaulted with the Master Lease.  If for any reason the amount drawn exceeds the amount owing at the time of the drawing under the Letter of Credit, Lessor shall retain the excess amount so drawn as a Security Deposit under the Master Lease and shall

 

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hold such cash pursuant to the terms of the Master Lease providing for the treatment of cash held as a Security Deposit under the Master Lease.

 

6.                                       Transferability.  The Letter of Credit shall provide that it is transferrable by Lessor in connection with any transfer by Lessor of its interest in the Master Lease; however, if Lessor wishes to transfer the Letter of Credit with respect to the Master Lease it shall notify Lessee, who shall, within fifteen (15) business days of such Notice, deliver to Lessor or Lessor’s assignee one or more replacement Letters of Credit in the Letter of Credit Amount.

 

7.                                       Bankruptcy or Insolvency of Lessee.  None of (a) the dissolution, insolvency or business failure of Lessee, (b) an assignment for the benefit of creditors of Lessee, (c) the commencement of any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding by or against Lessee, (d) the appointment of a receiver for any property of Lessee or (e) the issuance of a writ of attachment or the enforcement of any order of any court of legal process affecting any property of Lessee shall in any manner affect or impair the Letter of Credit or Lessor’s rights thereunder, or under this Agreement.  Lessee acknowledges and agrees that (a) the Letter of Credit is a distinct and separate contract between Lessor and the Bank,  (b) the Letter of Credit is not and shall not be deemed or construed to be an asset, property, possession or contract of any kind whatsoever owned or held by Lessee, (c)  any payments received by Lessor pursuant to the Letter of Credit shall not constitute a preferential payment and (d) all funds paid by the Bank pursuant to the Letter of Credit are the separate funds of the Bank.

 

8.                                       Notices.  Any notice, request or other communication to be given by any party hereunder shall be delivered as provided in the Master Lease.

 

9.                                       Miscellaneous.

 

9.1                                 Any delay on the part of Lessor in exercising any power, privilege or right under the Master Lease, this Agreement or any other instrument or document executed by Lessee in connection herewith shall not operate as a waiver thereof.  Neither a single or partial exercise thereof, nor the exercise of any other power, privilege or right shall preclude other or further exercise thereof or the exercise of any other power, privilege or right.  The waiver by Lessor of any default by Lessee shall not constitute a waiver of any subsequent defaults or a waiver of the same or any similar default by Lessee but shall be restricted to the default so waived.

 

9.2                                 All rights, remedies and powers of Lessor hereunder are irrevocable and cumulative, and not alternative or exclusive, and shall be in addition to all rights, remedies and powers given by the Master Lease, any other document executed and/or delivered in connection therewith or any other applicable laws now existing or hereafter enacted.

 

9.3                                 Whenever the singular shall be used hereunder, it shall be deemed to include the plural (and vice versa), and reference to one gender shall be construed to include all other genders, including neuter, whenever the context of this Agreement so requires.  Section captions or headings used in this Agreement are for convenience and reference only and shall not affect the construction hereof.

 

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9.4                                 Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision of the remaining provisions of this Agreement.

 

9.5                                 This Agreement may be executed in separate counterparts, each of which shall be considered as original when each party has executed and delivered to the other one or more copies of this Agreement but all of which taken together shall constitute one agreement.

 

9.6                                 The rights and privileges of Lessor and Lessee hereunder shall inure to the benefit of their successors and assigns, and this Agreement shall be binding on all assigns and successors of Lessee.

 

9.7                                 Lessee shall, at the request of Lessor, execute such other agreement, documents or instruments in connection with this Agreement as Lessor reasonably requires.

 

9.8                                 In the event of any action to enforce this Agreement, the party that does not prevail agrees to pay the costs and expenses of the party that prevails in such action, together with reasonable attorneys’ fees (including fees incurred in appeals and post-judgment enforcement proceedings).

 

9.9                                 No amendment of this Agreement shall be effective unless it is in writing and signed by the parties.

 

9.10                           Nothing contained in this Agreement shall be construed as in any way modifying or limiting the effect of terms or conditions set forth in the Master Lease, but each and every term and condition hereof shall be in addition thereto.  Lessee waives, to the fullest extent permitted by law, any right to (i) require Lessor to proceed against or exhaust any collateral or security held by Lessor pursuant to the Master Lease and/or any of the other documents executed and/or delivered by Lessee to Lessor in connection therewith or with which the Master Lease is cross-defaulted or (ii) pursue any other remedy in Lessor’s power.

 

9.11                           THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MARYLAND, EXCEPT THAT THE LAWS OF THE STATE IN WHICH A FACILITY COVERED BY THE MASTER LEASE IS LOCATED SHALL GOVERN THIS AGREEMENT (i) TO THE EXTENT NECESSARY TO OBTAIN THE BENEFIT OF THE RIGHTS AND REMEDIES OF LESSOR WITH RESPECT TO SUCH FACILITY AND (ii) WITH RESPECT TO PROCEDURAL REQUIREMENTS THAT ARE GOVERNED BY THE LAWS OF SUCH STATE.

 

9.12                           LESSEE CONSENTS TO IN PERSONAM JURISDICTION BEFORE THE STATE AND FEDERAL COURTS OF THE RESPECTIVE STATES IN WHICH THE FACILITIES COVERED BY THE MASTER LEASE ARE LOCATED AND IN MARYLAND AND AGREES THAT ALL DISPUTES CONCERNING THIS AGREEMENT BE HEARD IN THE STATE AND FEDERAL COURTS LOCATED IN THE RESPECTIVE STATES IN WHICH SUCH FACILITIES ARE LOCATED AND IN MARYLAND.  LESSEE AGREES

 

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THAT SERVICE OF PROCESS MAY BE EFFECTED UPON IT UNDER ANY METHOD PERMISSIBLE UNDER THE LAWS OF THE RESPECTIVE STATES IN WHICH SUCH FACILITIES ARE LOCATED OR MARYLAND AND IRREVOCABLY WAIVES ANY OBJECTION TO VENUE IN THE STATE, AND FEDERAL COURTS OF SUCH STATES.

 

Signatures follow.

 

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LESSEE:
    
	
 
    
	
 
    	
ADK   BONTERRA/PARKVIEW, LLC, a Georgia limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christopher Brogdon
    	
 
    
	
 
    	
 
    	
Christopher   Brogdon, Manager
    	
 
    

 

	
STATE   OF GEORGIA
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF COBB
    	
)
    

 

The foregoing instrument was acknowledged before me this 28 day of October, 2010, by Christopher Brogdon, who is a Manager of ADK BONTERRA/PARKVIEW, LLC, a Georgia limited liability company, on behalf of such limited liability company.

 

 

	
 
    	
/s/   Damaris Marriaga
    
	
 
    	
Notary   Public, Fayette County, Georgia
    
	
 
    	
My   Commission Expires: March 6, 2011
    

 

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LESSOR:
    
	
 
    
	
 
    	
GEORGIA LESSOR — BONTERRA/PARKVIEW, INC., a   Maryland corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel J. Booth
    	
 
    
	
 
    	
Name:
    	
Daniel   J. Booth
    	
 
    
	
 
    	
Title:
    	
Chief   Operating Officer
    	
 
    

 

	
STATE   OF MARYLAND
    	
)
    
	
 
    	
)   SS
    
	
COUNTY   OF BALTIMORE
    	
)
    

 

This instrument was acknowledged before me on the 28th day of October, 2010, by Daniel J. Booth, the COO of GEORGIA LESSOR — BONTERRA/PARKVIEW, INC., a Maryland corporation, on behalf of said corporation.

 

	
 
    	
Notary   Public 
    	
/s/   Judith A. Jacobs
    

 

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