Document:

EX 10.68.36 HRT Lease Termination Bloomsburg

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    to 10-Q

    PREPARED
      BY:

    David
      J.
      White

    Baker,
      Donelson, Bearman, Caldwell & Berkowitz, P.C.

    211
      Commerce Street, Suite 1000

    Nashville,
      Tennessee 37201

    615.726.5600

    

    RECORD
      AND RETURN TO:

    David
      J.
      White

    Baker,
      Donelson, Bearman, Caldwell & Berkowitz, P.C.

    211
      Commerce Street, Suite 1000

    Nashville,
      Tennessee 37201

    615.726.5600

    

     

    TAX
      PARCEL NO. 31-4E2-001-09

     

     

    LEASE
      TERMINATION AGREEMENT

     

    THIS
      LEASE TERMINATION AGREEMENT
      (the
“Termination”) is dated as of March ___, 2007, and is effective at the Effective
      Time (as defined in Section
      1
      hereof),
      and is by and among HR
      ACQUISITION I CORPORATION, a
      Maryland corporation, HR
      ACQUISITION OF PENNSYLVANIA, INC.,
      a
      Pennsylvania corporation (f/k/a Capstone Capital of Pennsylvania, Inc.), and
      HRT
      HOLDINGS, INC.,
      a
      Delaware corporation (collectively
      the “Landlord”), with an address of 3310 West End Avenue, Suite 700, Nashville,
      Tennessee 37203, and EMERITUS
      CORPORATION,
      a
      Washington corporation
      (the
“Tenant”), with an address of 3131
      Elliott Avenue, Suite 500, Seattle, Washington 98121.

    

    PRELIMINARY
      STATEMENTS

     

    A. Pursuant
      to that certain Lease Agreement identified on Exhibit
      A
      attached
      hereto (the “Lease”), Tenant leased from Landlord the premises more particularly
      described as the “Leased Property” in the Lease (the “Premises”).

     

    B. In
      conjunction with the conveyance of the Premises by Landlord to Tenant, Landlord
      and Tenant wish to agree and consent to the termination of the Lease.

     

    TERMS

     

    NOW,
      THEREFORE,
      in
      consideration of the sum of Ten and No/100 Dollars ($10.00) and other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and the mutual promises contained in this Termination, the
      parties, intending to be legally bound, agree as follows:

     

    1. Landlord
      and Tenant hereby agree and consent to the termination of the Lease, effective
      as of ______ __.m. (Eastern Time) on the date hereof (the “Effective Time”);
      provided, however, that Tenant is not released from any liabilities, duties
      or
      obligations under the Lease that 

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    arose
      or
      accrued prior to the Effective Time, including, without limitation, the
      obligation, responsibility or liability for the payment to Landlord or any
      other
      person or entity for any losses,
      liabilities, damages, injuries, penalties, fines, costs, expenses, claims and
      other amounts of any and every kind whatsoever (including, without limitation,
      reasonable attorneys’ fees and expenses) that
      relate to (a) the Lease; (b) Tenant’s occupancy of the Premises or the
      improvements thereon; (c) the use
      or
      enjoyment of any appurtenances, easements, rights and privileges belonging
      to
      the Premises by Tenant or its invitees, officers,
      contractors, subcontractors, agents, representatives or employees;
      or (d)
causes
      of
      action, claims, suits, actions or other proceedings (i) pending at the Effective
      Time or (ii) filed or made at or after the Effective Time and relating to
events
      occurring or liabilities or obligations arising or accruing prior to the
      Effective Time.

    

    2. Tenant
      hereby releases and forever discharges Landlord from all known or unknown causes
      of action, claims, suits, actions, demands or other proceedings of any kind
      that
      Tenant has as of the Effective Time or may have after the Effective Time on
      account of or in any way arising out of or related to the Lease or the
      Premises.

    

    3. This
      Termination shall be construed and interpreted in accordance with the laws
      of
      the State in which the Premises are located.

    

    4. This
      Termination shall inure to the benefit of the successors and assigns of the
      parties hereto.

    

    5. This
      Termination may be executed in any number of counterparts, each of which shall
      be deemed an original hereof and all of which together shall constitute but
      one
      Termination. In the event of any conflict between the terms of this Termination
      and the terms of the Lease, the terms of this Termination shall govern and
      shall
      be controlling.

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this instrument effective on the date set forth
      above.

     

    LANDLORD:

    

    HR
      ACQUISITION I CORPORATION,
      a
        Maryland
      corporation

    

    Witness:     By:____
      /s/ John M. Bryant, Jr _________ 

    John
      M.
      Bryant, Jr.

    Senior
      Vice President and General Counsel

    ______________/s/
      Monica A. Carlson ________  

    Name:______
      Monica A. Carlson _________  

     

    

    

    STATE
      OF
      TENNESSEE )

    ) ss:

    COUNTY
      OF
      DAVIDSON )

    

    On
      this
      the _14th_ day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr. who acknowledged himself to be the Senior Vice
      President and General Counsel of HR
      ACQUISITION I CORPORATION,
      a
      Maryland corporation, and that he as such officer, being authorized to do so,
      executed the foregoing instrument for the purposes contained therein on behalf
      of the said corporation.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

    

    [SEAL]    _________/s/
      Ruth Anne Caruthers ____________

    Notary
      Public

    My
      commission expires:_08/08/2010______

    

    

    

    

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    HR
      ACQUISITION OF PENNSYLVANIA, INC.,
            a
      Pennsylvania corporation 

    

    

    Witness:     By:___
      /s/ John M. Bryant, Jr _________ 

    John
      M.
      Bryant, Jr.

    Senior
      Vice President and General Counsel

    ________/s/
      Monica A. Carlson ___  

    Name:__
      Monica A. Carlson ___  

     

     

    

    

    

    

    STATE
      OF
      TENNESSEE )

    ) ss:

    COUNTY
      OF
      DAVIDSON )

    

    On
      this
      the _14th day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr., who acknowledged themselves to be the Senior
      Vice
      President and General Counsel of HR
      ACQUISITION OF PENNSYLVANIA, INC.,
      a
      Pennsylvania corporation, and that he as such officer, being authorized to
      do
      so, executed the foregoing instrument for the purposes contained therein on
      behalf of the said corporation.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

    

    [SEAL]    ______/s/
      Ruth Anne Caruthers ___________

    Notary
      Public

    My
      commission expires:___08/08/2010___

    

    

    

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    HRT
      HOLDINGS, INC.,
      a
      Delaware         corporation
      

    

    

    Witness:     By:___/s/
      _ John M. Bryant, Jr.______ ___ 

    John
      M.
      Bryant, Jr.

    Senior
      Vice President and General Counsel

    __/s/
      Monica A. Carlson_________  

    Name:_
      Monica A. Carlson ________  

     

     

    

    

    STATE
      OF
      TENNESSEE )

    ) ss:

    COUNTY
      OF
      DAVIDSON )

    

    On
      this
      the _14th_ day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr. who acknowledged himeself to be the Senior Vice
      President and General Counsel of HRT
      HOLDINGS, INC.,
      a
      Delaware corporation, and that he as such officer, being authorized to do so,
      executed the foregoing instrument for the purposes contained therein on behalf
      of the said corporation.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

    

    [SEAL]    ___/s/
      Ruth Anne Caruthers____________

    Notary
      Public

    My
      commission expires:__08/08/2010___

    

    

    

    

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TENANT:

     

    EMERITUS
      CORPORATION,

            a
      Washington corporation

    Witness:      

    

    

    __/s/
      Leo
      Watterson___________  By:___/s/
      Eric Mendelsohn ________

    Name:_
      Leo Watterson _________________   Eric
      Mendelsohn 

    Director
      of Real Estate and Legal          Affairs
      

    

    

    STATE
      OF
 Washington )

    ) ss:

    COUNTY
      OF
 King )

    

    On
      this
      the _10th_ day of March, 2007, before me, the undersigned officer, personally
      appeared Eric Mendelsohn who acknowledged himelf to be the Director of Real
      Estate and Legal Affairs of EMERITUS
      CORPORATION,
      a
      Washington corporation,
      and
      that he as such officer, being authorized to do so, executed the foregoing
      instrument for the purposes contained therein on behalf of the said
      corporation.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.

    

    

    [SEAL]    __/s/
      Nadia S. Reynolds____________

    Notary
      Public

    My
      commission expires:__06/15/2010___

    

    

    

    

    
      
        
          Loyalton
            at Bloomsburg

          Bloomsburg,
            Columbia County, Pennsylvania

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    

    Lease
      Agreement, dated May 1, 2003, by and between HR Acquisition I Corporation,
      Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc., as lessor,
      and
      Emeritus Corporation, as lessee;

    

    as
      amended by First Amendment to Lease Agreement, dated as of June 30, 2005, by
      and
      between HR Acquisition I Corporation, HR Acquisition of Pennsylvania, Inc.
      (f/k/a/ Capstone Capital of Pennsylvania, Inc.), and HRT Holdings, Inc., and
      Emeritus Corporation;

     

    and
      as
      evidenced by (i) a
      Memorandum of a Lease Agreement, dated May 1, 2003, by and between Capstone
      Capital of Pennsylvania, Inc. and HRT Holdings, Inc., and Emeritus Corporation,
      recorded at Instrument No. 200306273 in the Office of the Recorder of Deeds
      for
      Columbia County, Pennsylvania, as amended by an Amendment to Memorandum of
      Lease
      Agreement, dated as of June 30, 2005, by and between HR Acquisition of
      Pennsylvania, Inc. (f/k/a Capstone Capital of Pennsylvania, Inc.), and Emeritus
      Corporation, recorded at Instrument No. 200508723 in the Office of the Recorder
      of Deeds for Columbia County, Pennsylvania,
      (ii) a
      Memorandum of a Lease Agreement, dated April 28, 2003 and effective May 1,
      2003,
      by and between Capstone Capital of Pennsylvania, Inc. and Emeritus Corporation,
      recorded at Book 697, Page 2652 in the Office of the Recorder of Deeds for
      Cumberland County, Pennsylvania, as amended by an Amendment to Memorandum of
      Lease Agreement, dated as of June 30, 2005, by and between HR Acquisition of
      Pennsylvania, Inc. (f/k/a Capstone Capital of Pennsylvania, Inc.), and Emeritus
      Corporation, recorded at Book 720, Page 128 in the Office of the Recorder of
      Deeds for Cumberland County, Pennsylvania, (iii) a Memorandum of a Lease
      Agreement, dated April 28, 2003, effective May 1, 2003, by and between Capstone
      Capital of Pennsylvania, Inc. and Emeritus Corporation, recorded at Record
      Book
      4921, Page 105 in the Office of the Recorder of Deeds for Dauphin County,
      Pennsylvania, as amended by an Amendment to Memorandum of Lease Agreement,
      dated
      as of June 30, 2005, by and between HR Acquisition of Pennsylvania, Inc. (f/k/a
      Capstone Capital of Pennsylvania, Inc.), and Emeritus Corporation, recorded
      at
      Record Book 6162, Page 406 in the Office of the Recorder of Deeds for Dauphin
      County, Pennsylvania, (iv) a Memorandum of a Lease Agreement, recorded at Lease
      No. 200317547 in the Office of the Recorder for Portage County, Ohio, as amended
      by an Amendment to Memorandum of Lease Agreement, dated as of June 30, 2005,
      by
      and between HR Acquisition I Corporation and Emeritus Corporation, recorded
      at
      Lease No. 200517310 in the Office of the Recorder for Portage County, Ohio,
      (v)
      a Memorandum of a Lease Agreement, dated May 1, 2003, by and between HRT
      Holdings, Inc. and Emeritus Corporation, recorded at Instrument No. 200311235
      in
      the Office of the Clerk of the Circuit Court for Roanoke County, Virginia,
      as
      amended by an Amendment to Memorandum of Lease Agreement, dated as of June
      30,
      2005, by and between HRT Holdings, Inc. and Emeritus Corporation, recorded
      at
      Instrument No. 200511174 in the Office of the Clerk of the Circuit Court for
      Roanoke County, Virginia, (vi) a Memorandum of a Lease Agreement, dated May
      1,
      2003, by and between HR Acquisition I Corporation (f/k/a Capstone Capital
      Corporation) and Emeritus Corporation, recorded at Book 5819, Page 2461 in
      the
      Office of the Register of Deeds for Guilford County, North Carolina, as amended
      by an Amendment to Memorandum of Lease 

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, Pennsylvania

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Agreement,
      dated as of June 30, 2005, by and between HR Acquisition I Corporation and
      Emeritus Corporation, recorded at Book 6352, Page 1327 in the Office of the
      Register of Deeds for Guilford County, North Carolina, (vii) a Memorandum of
      a
      Lease Agreement, dated May 1, 2003, by and between HRT Holdings, Inc. and
      Emeritus Corporation, recorded at Deed Book 2271, Page 474 in the Office of
      the
      Clerk of the Circuit Court for Rockingham County, Virginia, as amended by an
      Amendment to Memorandum of Lease Agreement, dated as of June 30, 2005, by and
      between HRT Holdings, Inc. and Emeritus Corporation, recorded at Deed Book
      2697,
      Page 219 in the Office of the Clerk of the Circuit Court for Rockingham County,
      Virginia, and (viii) a Memorandum of a Lease Agreement, dated May 1, 2003,
      by
      and between HRT Holdings, Inc. and Emeritus Corporation, recorded at Instrument
      No. 03-2692 in the Office of the Clerk of the Circuit Court for the City of
      Danville, Virginia, as amended by an Amendment to Memorandum of Lease Agreement,
      dated as of June 30, 2005, by and between HRT Holdings, Inc. and Emeritus
      Corporation, recorded at Instrument No. 05-3328 in the Office of the Clerk
      of
      the Circuit Court for the City of Danville, Virginia;

    

    and
      as
      subject to (i) the Assignment of Rents and Leases, dated as of May 1, 2003,
      by
      and between HR Acquisition I Corporation, Capstone Capital of Pennsylvania,
      Inc., and HRT Holdings, Inc., and Emeritus Corporation, recorded at Instrument
      No. 200306275 in the Office of the Recorder of Deeds for Columbia County,
      Pennsylvania, (ii) the Assignment of Rents and Leases, dated April 28, 2003
      and
      effective May 1, 2003, by and between HR Acquisition I Corporation, Capstone
      Capital of Pennsylvania, Inc., and HRT Holdings, Inc., and Emeritus Corporation,
      recorded at Book 697, Page 2657 in the Office of the Recorder of Deeds for
      Cumberland County, Pennsylvania, (iii) the Assignment of Rents and Leases,
      dated
      April 28, 2003 and effective May 1, 2003, by and between HR Acquisition I
      Corporation, Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc.,
      and
      Emeritus Corporation, recorded at Record Book 4921, Page 128 in the Office
      of
      the Recorder of Deeds for Dauphin County, Pennsylvania, (iv) the Assignment
      of
      Rents and Leases, dated as of May 1, 2003, by and between HR Acquisition I
      Corporation, Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc.,
      and
      Emeritus Corporation, recorded at Mortgage No. 200317549 in the Office of the
      Recorder for Portage County, Ohio, (v) the Assignment of Rents and Leases,
      dated
      as of May 1, 2003, by and between HR Acquisition I Corporation, Capstone Capital
      of Pennsylvania, Inc., and HRT Holdings, Inc., and Emeritus Corporation,
      recorded at Instrument No. 200311238 in the Office of the Clerk of the Circuit
      Court for Roanoke County, Virginia, (vi) the Assignment of Rents and Leases,
      dated as of May 1, 2003, by and between HR Acquisition I Corporation (f/k/a
      Capstone Capital Corporation), Capstone Capital of Pennsylvania, Inc., and
      HRT
      Holdings, Inc., and Emeritus Corporation, recorded at Book 5819, Page 2483
      in
      the Office of the Register of Deeds for Guilford County, North Carolina, and
      (vii) the Assignment of Rents and Leases, dated as of May 1, 2003, by and
      between HR Acquisition I Corporation, Capstone Capital of Pennsylvania, Inc.,
      and HRT Holdings, Inc., and Emeritus Corporation, recorded at Instrument No.
      03-2694 in the Office of the Clerk of the Circuit Court for the City of
      Danville, Virginia;

    

    and
      as
      otherwise amended, modified, extended or assigned.

    
      
        Loyalton
          at Bloomsburg

        Bloomsburg,
          Columbia County, PennsylvaniaEX 10.68.37 HRT Lease Termination Oakwell

Back
    to 10-Q

    This
      instrument was prepared by:

    David
      J.
      White 

    Baker,
      Donelson, Bearman, 

    Caldwell
      & Berkowitz, P.C.

    211
      Commerce Street, Suite 1000

    Nashville,
      Tennessee 37201

    

     

    LEASE
      TERMINATION AGREEMENT

     

    THIS
      LEASE TERMINATION AGREEMENT
      (the
“Termination”) is dated as of March ___, 2007, and effective at the Effective
      Time (as defined in Section
      1
      hereof),
      and is by and among HR
      ACQUISITION OF SAN ANTONIO, LTD.,
      an
      Alabama limited partnership (f/k/a Capstone Capital of San Antonio, Ltd. d/b/a
      Cahaba of San Antonio, Ltd.) (the “Landlord”), with an address of 3310 West End
      Avenue, Suite 700, Nashville, Tennessee 37203, and ESC
      IV, L.P. (d/b/a
      Texas-ESC IV, L.P.), a Washington limited partnership (the “Tenant”), with an
      address of 3131 Elliott Avenue, Suite 500, Seattle, Washington
      98121.

    

    PRELIMINARY
      STATEMENTS

     

    A. Pursuant
      to that certain Lease Agreement identified on Exhibit
      A
      attached
      hereto (the “Lease”), Tenant leased from Landlord the premises more particularly
      described as the “Leased Property” in the Lease (the “Premises”).

     

    B. In
      conjunction with the conveyance of the Premises by Landlord to Tenant, Landlord
      and Tenant wish to agree and consent to the termination of the Lease.

     

    TERMS

     

    NOW,
      THEREFORE,
      in
      consideration of the sum of Ten and No/100 Dollars ($10.00) and other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and the mutual promises contained in this Termination, the
      parties, intending to be legally bound, agree as follows:

     

    1. Landlord
      and Tenant hereby agree and consent to the termination of the Lease, effective
      as of ______ __.m. (Central Time) on the date hereof (the “Effective Time”);
      provided, however, that Tenant is not released from any liabilities, duties
      or
      obligations under the Lease that arose or accrued prior to the Effective Time,
      including, without limitation, the obligation, responsibility or liability
      for
      the payment to Landlord or any other person or entity for any losses,
      liabilities, damages, injuries, penalties, fines, costs, expenses, claims and
      other amounts of any and every kind whatsoever (including, without limitation,
      reasonable attorneys’ fees and expenses) that
      relate to (a) the Lease; (b) Tenant’s occupancy of the Premises or the
      improvements thereon; (c) the use
      or
      enjoyment of any appurtenances, easements, rights and privileges belonging
      to
      the Premises by Tenant or its invitees, officers,
      contractors, subcontractors, agents, representatives or employees;
      or (d)
causes
      of
      action, claims, suits, actions or other proceedings (i) pending at the Effective
      Time or (ii) filed or made at or after the Effective Time and relating to
events
      occurring or liabilities or obligations arising or accruing prior to the
      Effective Time.

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2. Tenant
      hereby releases and forever discharges Landlord from all known or unknown causes
      of action, claims, suits, actions, demands or other proceedings of any kind
      that
      Tenant has as of the Effective Time or may have after the Effective Time on
      account of or in any way arising out of or related to the Lease or the
      Premises.

    

    3. This
      Termination shall be construed and interpreted in accordance with the laws
      of
      the State in which the Premises are located.

    

    4. This
      Termination shall inure to the benefit of the successors and assigns of the
      parties hereto.

    

    5. This
      Termination may be executed in any number of counterparts, each of which shall
      be deemed an original hereof and all of which together shall constitute but
      one
      Termination. In the event of any conflict between the terms of this Termination
      and the terms of the Lease, the terms of this Termination shall govern and
      shall
      be controlling.

     

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this instrument effective on the date set forth
      above.

     

    LANDLORD:

    

    HR
      ACQUISITION
      OF SAN ANTONIO,

    LTD.,
      an
      Alabama limited partnership

    

    By: Healthcare
      Acquisition of Texas, Inc., 

    an
      Alabama corporation

    its
      General Partner

    

    By: /s/
      John
      M.
      Bryant, Jr. 

    John
      M.
      Bryant, Jr.,

    Senior
      Vice President and General    Counsel

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    TENANT:

    

    ESC
      IV, L.P.,
      a

    Washington
      limited partnership

    

    By: ESC
      G.P.
      II, Inc., 

    a
      Washington corporation

    its
      General Partner

    

    By: /s/
      Eric
      Mendelsohn 

    Eric
      Mendelsohn,

    Authorized
      Signatory

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    STATE
      OF
      TENNESSEE

    COUNTY
      OF
      DAVIDSON

    

    BEFORE
      ME, the undersigned authority, on this day personally appeared John M. Bryant,
      Jr., known to me to be the person whose name is subscribed to the foregoing
      instrument, and known to me to be the Senior Vice President and General Counsel
      of Healthcare Acquisition of Texas, Inc., an
      Alabama corporation and general partner of HR
      ACQUISITION OF SAN ANTONIO, LTD.,
      an
      Alabama limited partnership, and acknowledged to me that he executed said
      instrument for the purposes and consideration therein expressed, in the capacity
      therein stated and as the act and deed of said limited partnership.

     

    Given
      under my hand and seal of office this _14th_ day of March, 2007.

     

    

    /s/
      Ruth Anne Caruthers 

    Name: Ruth
      Anne Caruthers   

    Notary
      Public, State of _Tennessee___

    My
      Commission Expires:  08/08/2010 

    

    [NOTARIAL
      SEAL]

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    STATE
      OF
      __Washington__

    COUNTY
      OF
      _King____

    

    BEFORE
      ME, the undersigned authority, on this day personally appeared Eric Mendelsohn,
      known to me to be the person whose name is subscribed to the foregoing
      instrument, and known to me to be the Authorized Signatory of ESC G.P. II,
      Inc.,
      a Washington corporation and general partner of ESC
      IV, L.P.,
      a
      Washington limited partnership, and acknowledged to me that he executed said
      instrument for the purposes and consideration therein expressed, in the capacity
      therein stated and as the act and deed of said limited partnership.

     

    Given
      under my hand and seal of office this _10th__ day of March, 2007.

     

    

    /s/
      Nadia S. Reynolds  

    Name: Nadia
      S. Reynolds   

    Notary
      Public, State of _Washington_____

    My
      Commission Expires:  06/15/2010

    

    [NOTARIAL
      SEAL]

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    to
      Lease Termination

    

    Description
      of Lease

     

    Lease
      Agreement, dated as of December 31, 1996, by and among Capstone Capital of
      San
      Antonio, Ltd. (d/b/a Cahaba of San Antonio, Ltd.), as lessor, and Integrated
      Living Communities of Oakwell, Inc., as lessee, and Integrated Living
      Communities, Inc.;

    

    as
      amended by First Amendment to Lease Agreement, dated as of December 1, 1997,
      by
      and between Capstone Capital of San Antonio, Ltd. (d/b/a Cahaba of San Antonio,
      Ltd.), and Integrated Living Communities of Oakwell, Inc.;

    

    and
      as
      assigned by Assignment and Assumption Agreement, dated as of May 9, 2002, by
      and
      by among Capstone Capital of San Antonio, Ltd. (d/b/a Cahaba of San Antonio,
      Ltd.), Integrated Living Communities of Oakwell, L.P. (successor-in-interest
      to
      Integrated Living Communities of Oakwell, Inc.), HB-ESC V, L.P., and Daniel
      R.
      Baty;

    

    and
      as
      amended by Second Amendment to Lease Agreement, dated as of May 9, 2002, by
      and
      among Capstone Capital of San Antonio, Ltd. (d/b/a Cahaba of San Antonio, Ltd.),
      HB-ESC V, L.P., and Daniel R. Baty;

    

    and
      as
      assigned by Assignment and Assumption of Lease Agreement (With Consent), dated
      as of December 31, 2003, by and by among HR Acquisition of San Antonio, Ltd.
      (f/k/a Capstone Capital of San Antonio, Ltd. d/b/a Cahaba of San Antonio, Ltd.),
      HB-ESC V, L.P., ESC IV, L.P. (d/b/a Texas-ESC IV, L.P.), Emeritus Corporation,
      and Daniel R. Baty;

    

    and
      as
      amended by Third Amendment to Lease Agreement, dated as of June 30, 2005, by
      and
      among HR Acquisition of San Antonio, Ltd. (f/k/a Capstone Capital of San
      Antonio, Ltd.), ESC IV, L.P. (d/b/a Texas-ESC IV, L.P.), Emeritus Corporation,
      and Daniel R. Baty;

    

    and
      as
      evidenced by (i) a Short Form Memorandum and Assignment and Assumption of Lease
      and Right of First Refusal, dated as of May 9, 2002, by and between Integrated
      Living Communities of Oakwell, L.P. (formerly Integrated Living Communities
      of
      Oakwell, Inc.), and HB-ESC V, L.P., recorded at Volume 9387, Page 1973 of the
      Real Property Records of Bexar County, Texas, (ii) a Short Form Memorandum
      and
      Assignment and Assumption of Lease and Right of First Refusal, dated as of
      December 31, 2003, by and between HB-ESC V, L.P., and ESC IV, L.P. (d/b/a
      Texas-ESC IV, L.P.), recorded at Volume 10626, Page 1283 of the Real Property
      Records of Bexar County, Texas, and (iii) a Memorandum of a Lease Agreement,
      effective June 30, 2005, by and between HR Acquisition of San Antonio, Ltd.
      (f/k/a Capstone Capital of San Antonio, Ltd.), and ESC IV, L.P. (d/b/a Texas-ESC
      IV, L.P.), recorded at Volume 11514, Page 1517 in the Real Property Records
      of
      Bexar County, Texas;

    

     

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    and
      as
      subject to the Absolute Assignment of Rents and Leases, dated as of December
      31,
      2003, by and between HR Acquisition of San Antonio, Ltd. (f/k/a Capstone Capital
      of San Antonio, Ltd. d/b/a Cahaba of San Antonio, Ltd.), and ESC IV, L.P. (d/b/a
      Texas-ESC IV, L.P.), recorded at Volume 10545, Page 2360 in the Real Property
      Records of Bexar County, Texas;

    

    and
      as
      otherwise amended, modified, extended or assigned.

     

    

     

    
      
        Kingsley
          Place of Oakwell

        San
          Antonio, Bexar County, Texas

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