Document:

exv10w20

Exhibit 10.20

FIRST AMENDMENT TO DEED OF TRUST NOTE A

(Loan A)

     THIS FIRST AMENDMENT TO DEED OF TRUST NOTE A (this “Agreement”) is made as of August 28, 2009,
by and between SUNRISE CONNECTICUT AVENUE ASSISTED LIVING L.L.C., a limited liability company
organized and existing under the laws of the Commonwealth of Virginia (the “Borrower”) and CHEVY
CHASE BANK, a division of Capital One, N.A. (the “Lender”).

RECITALS

     A. Borrower obtained a loan from the Lender and M.B. Financial Bank, N.A., a national banking
association (“MB Financial”) in the maximum principal amount of Thirty Million and No/Dollars
($30,000,000.00) (“Loan A”) which was advanced pursuant to the provisions of a certain Loan
Agreement dated August 28, 2007 by and between the Borrower, MB Financial and the Lender, as
amended by that certain First Amendment to Loan Agreement dated April 15, 2008 and that certain
Second Amendment to Loan Agreement dated of even date herewith (the same, as amended, modified,
restated, substituted, extended and renewed at any time and from time to time, the “Loan
Agreement”).

     B. Loan A is evidenced by, and repaid with interest in accordance with the provisions of (i) a
Deed of Trust Note A dated August 28, 2007 from the Borrower payable to the Lender in the principal
amount of Twenty Million and No/Dollars ($20,000,000.00) (as amended by this Agreement and as
amended, modified, restated, substituted, extended and renewed at anytime and from time to time,
the “Chevy Chase Note”) and (ii) a Deed of Trust Note A dated August 28, 2007 from the Borrower
payable to MB Financial in the principal amount of Ten Million and No/Dollars ($10,000,000.00), as
amended by that certain First Amendment to Deed of Trust Note A dated of even date herewith (as
amended, modified, restated, substituted, extended and renewed at anytime and from time to time,
the “MB Financial Note” and, collectively with Chevy Chase Note, the “Notes”).

     C. Loan A is guaranteed by Sunrise Senior Living, Inc. a Delaware corporation (“Guarantor”),
pursuant to the terms of that certain Guaranty of Payment dated August 28, 2007, as amended by that
certain First Amendment to Guaranty of Payment dated September 8, 2008 and that certain Second
Amendment to Guaranty of Payment dated of even date herewith (as amended, modified, restated,
substituted, extended and renewed at anytime and from time to time, the “Guaranty”).

     D. The Borrower has requested and the Lender has agreed to (i) extend the Maturity Date of the
Chevy Chase Note, (ii) increase the interest rate applicable under the terms of the Chevy Chase
Note and (iii) make such other changes as more particularly set forth herein.

 

 

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, receipt of which is hereby acknowledged, Borrower and Lender agree as follows:

     1. Borrower and Lender agree that the Recitals above are a part of this Agreement. Unless
otherwise expressly defined in this Agreement, terms defined in the Chevy Chase Note shall have the
same meaning under this Agreement.

     2. Section 1 (Interest) of the Chevy Chase Note is hereby amended and restated in its entirety
as follows:

     “1. Interest.

     Commencing as of August 29, 2009 and continuing until repayment in full of all
sums due hereunder, the unpaid Principal Sum shall bear interest at the fluctuating
rate based on an independent index which is the average of interbank offered rates
for one-month dollar deposits in the London Market as reported in The Wall
Street Journal (the “Index”) plus 500 basis points per annum (the “LIBOR Rate”)
which rate shall be adjusted for any reserve requirements imposed upon the Lender
from time to time. The LIBOR Rate does not necessarily represent the lowest rate of
interest charged by the Lender to borrowers. If the Index becomes unavailable
during the term of this Note, the Lender may designate a substitute index after
giving notice to the Borrower. The LIBOR Rate will be adjusted on the first day of
each month, based on the value of the Index as published in The Wall Street
Journal as of the first business day of each month. All interest payable under
the terms of this Note shall be calculated on the basis of a 365-day year. The
LIBOR Rate shall be in effect for a period of the number of days indicated (each a
“LIBOR Period”), in any case extended to the next succeeding Business Day (as
defined in the Loan and Security Agreement of even date herewith) when necessary,
beginning on the date hereof or the expiration date of the then-current LIBOR
Period.”

     3. Section 2 (Payments and Maturity) of the Chevy Chase Note is hereby amended and restated in
its entirety as follows:

     “2. Payments and Maturity.

     The unpaid Principal Sum, together with interest thereon at the rate or rates
provided above, shall be payable as follows:

     (a) Commencing on October 1, 2007 and continuing on the same day of each and
every month thereafter, to and including September 1, 2008, interest only;

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     (b) Commencing on October 1, 2008 and continuing on the same day of each and
every month thereafter, to and including December 1, 2009, principal shall be due
and payable in equal monthly payments of $22,000.00, plus all accrued and unpaid
interest on the outstanding principal balance; and

     (c) Unless sooner paid, the unpaid Principal Sum, together with interest
accrued and unpaid thereon, shall be due and payable in full on December 2, 2009.”

     4. Borrower hereby issues, ratifies and confirms the representations, warranties and covenants
contained in the Chevy Chase Note, as amended hereby. Borrower agrees that this Agreement is not
intended to and shall not cause a novation with respect to Loan A any or all of the obligations of
Borrower under the Financing Documents. Except as expressly modified herein, the terms, provisions
and covenants of the Chevy Chase Note are in all other respects hereby ratified and confirmed and
remain in full force and effect.

     5. The Borrower acknowledges and warrants that the Lender has acted in good faith and has
conducted in a commercially reasonable manner its relationships with the Borrower in connection
with this Agreement and generally in connection with the Financing Documents and the obligations
evidenced by the Chevy Chase Note, the Borrower hereby waiving and releasing any claims to the
contrary.

     6. The Borrower shall pay at the time this Agreement is executed and delivered all fees,
commissions, costs, charges, taxes and other expenses incurred by the Lender and its counsel in
connection with this Agreement, including reasonable fees and expenses of the Lender’s counsel and
all recording fees, taxes and charges.

     7. This Agreement shall be governed in all respects by the laws of the Commonwealth of
Virginia and shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

     8. This Agreement may be executed in any number of duplicate originals or counterparts, each
of such duplicate originals or counterparts shall be deemed to be an original and all taken
together shall constitute but one and the same instrument. Borrower agrees that Lender may rely on
a telecopy of any signature of Borrower. Lender agrees that Borrower may rely on a telecopy of
this Agreement executed by Lender.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

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     IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement under seal as of the date
and year first written above.

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	WITNESS OR ATTEST:	 	SUNRISE CONNECTICUT AVENUE ASSISTED LIVING, L.L.C.
	 

	 	By:
	 	Sunrise Senior Living Investments, Inc., its sole Member

	 	 	 	 	 
	 	 	 
	/s/ Uma Singh	By:  	                              /s/ Julie Pangelinan (SEAL)
 	 
	 
	 	 
	 
	 	 	Julie Pangelinan 	 
	 	 	Vice President 	 
	 

COMMONWEALTH OF VIRGINIA, COUNTY OF FAIRFAX, TO WIT:

     On August 29, 2009, before me, Helen A. Wilson, a Notary Public in and for the Commonwealth
shown above, appeared Julie Pangelinan, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose signature is subscribed to the within instrument, and
acknowledged to me that she executed the same in her authorized capacity as Vice President of
Sunrise Senior Living Investments, Inc., sole Member of Sunrise Connecticut Avenue Assisted Living,
L.L.C., and that by her signature on the instrument the entity upon behalf of which she acted,
executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	/s/
Helen A. Wilson

	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires: 11/30/2010

My Notarial Registration Number is: 313047

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	 	 	LENDER:
	 
	 	 	 	 
	WITNESS:	 	CHEVY CHASE BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Claude R. Sanders (SEAL)
	 

	 	 	 	 

	 

	 	 	 	Claude R. Sanders
	 

	 	 	 	Senior Vice President

COMMONWEALTH/STATE OF MARYLAND, COUNTY/CITY OF MONTGOMERY, TO WIT:

     On August 28, 2009, before me, Pauline C. Ralph, a Notary Public in and for the Commonwealth
shown above, appeared Claude R. Sanders, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose signature is subscribed to the within instrument, and
acknowledged to me that he executed the same in his authorized capacity as Senior Vice President of
Chevy Chase Bank, a division of Capital One, N.A., and that by his signature on the instrument the
entity upon behalf of which he acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	/s/
Pauline C. Ralph

	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires: 6/1/2020

My Notarial Registration Number is:                                         

5exv10w21

Exhibit 10.21

SECOND AMENDMENT TO LOAN AGREEMENT

(Loan B)

     THIS SECOND AMENDMENT TO LOAN AGREEMENT (this “Agreement”) is made as of August 28, 2009, by
and between SUNRISE CONNECTICUT AVENUE ASSISTED LIVING L.L.C., a limited liability company
organized and existing under the laws of the Commonwealth of Virginia (the “Borrower”) and CHEVY
CHASE BANK, a division of Capital One, N.A. (“Lender”).

RECITALS

     A. Borrower obtained a loan from the Lender in the maximum principal amount of Ten Million and
No/Dollars ($10,000,000.00) (“Loan B”) which was advanced pursuant to the provisions of a certain
Loan Agreement dated August 28, 2007 by and between the Borrower and the Lender, as amended by that
certain First Amendment to Loan Agreement dated April 15, 2008 (the same, as amended by this
Agreement and as amended, modified, restated, substituted, extended and renewed at any time and
from time to time, the “Loan Agreement”).

     B. Loan B is evidenced by, and repaid with interest in accordance with the provisions of a
Deed of Trust Note B dated August 28, 2007 from the Borrower payable to Lender in the principal
amount of Ten Million and No/Dollars ($10,000,000.00) as amended by that certain First Amendment to
Deed of Trust Note B dated of even date herewith (as amended, modified, restated, substituted,
extended and renewed at anytime and from time to time, the “Note”).

     C. Loan B is guaranteed by Sunrise Senior Living, Inc. a Delaware corporation (“Guarantor”),
pursuant to the terms of that certain Guaranty of Payment dated August 28, 2007, as amended by that
certain First Amendment to Guaranty of Payment dated September 8, 2008 (as amended, modified,
restated, substituted, extended and renewed at anytime and from time to time, the “Guaranty”).

     D. The Borrower has requested and the Lender has agreed to (i) waive the Event of Default
caused by the Borrower’s failure to comply with the occupancy requirement for the fiscal quarters
ending March 31, 2009 and June 30, 2009, (ii) revise the financial reporting requirements and (iii)
make such other changes as more particularly set forth herein.

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, receipt of which is hereby acknowledged, Borrower and Lender agree as follows:

 

 

     1. Borrower and Lender agree that the Recitals above are a part of this Agreement. Unless
otherwise expressly defined in this Agreement, terms defined in the Loan Agreement shall have the
same meaning under this Agreement.

     2. The parties hereto acknowledge and agree (a) that the outstanding principal balance of Loan
B as of the date hereof is $10,000,000(b) that interest on the unpaid principal balance of Loan B
has been paid through August 1, 2009, and (c) that the unpaid principal balance of Loan B, together
with accrued and unpaid interest thereon, is due and owing subject to the terms of repayment
hereinafter set forth, without defense or offset.

     3. Borrower hereby acknowledges and agrees that pursuant to the terms of Section 7.29 (Debt
Service Ratio) of the Loan Agreement, Borrower is required to maintain, tested as of the end of
each fiscal quarter during the term of the Loan, a Debt Service Ratio for the Facility of not less
than 1.20 to 1.0 (the “Debt Service Covenant”). Borrower and Lender hereby acknowledge and agree
that for the period commencing July 1, 2009 and ending December 2, 2009 the Debt Service Covenant
will not be measured.

     4. Borrower hereby acknowledges and agrees that pursuant to the terms of Section 7.30
(Occupancy Covenant) of the Loan Agreement, Borrower is required to maintain at all times, tested
as of the end of each fiscal quarter during the term of each Loan, a minimum average daily
occupancy of eighty-five percent (85%), measured on a unit basis (the “Occupancy Covenant”).
Pursuant to Section 9.3 of the Loan Agreement, the failure to comply with the Occupancy Covenant
constitutes an Event of Default under each Loan Agreement. Borrower and Lender hereby agree to
waive the Event of Default caused by the Borrower’s failure to comply with the Occupancy Covenant
for the fiscal quarters ending March 31, 2009 and June 30, 2009.

     5. Subsection (c) of 7.1 (Financial Statements) of the Loan Agreement is hereby amended and
restated in its entirety as follows:

     “(c) As soon as available but in no event later than the dates indicated,
consolidated financial statements of Guarantor for the fiscal quarter ending
September 30, 2009, no later than November 15, 2009, and for each fiscal quarter
thereafter, within forty-five (45) days thereafter; such statements shall include a
consolidated balance sheet and related consolidated statements of income and
operations, shareholder’s equity and cash flows for such fiscal quarter.”

     6. Section 7.1 (Financial Statements) of the Loan Agreement is hereby amended by adding the
following subsections (f) — (j) in their entirety as follows:

     “(f) As soon as available but in no event later than the 15th day of
each calendar month, commencing on September 15, 2009, certification by Guarantor of
the amount of its Cash Balance (as defined in the Guaranty) as of the last day of
the immediately preceding month.

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     (g) As soon as available but in no event later than the 15th day of
each calendar month, commencing on September 15, 2009, a detailed report as to the
occupancy levels within the facilities owned by Guarantor or its Affiliates as of
the last day of the immediately preceding month.

     (h) As soon as available but in no event later than the 15th day of
each calendar month, commencing on September 15, 2009, a thirteen (13) week cash
flow projection for Guarantor and its Affiliates dating from the fifteenth
(15th) of such calendar month.

     (i) Immediately after their preparation, copies of any written updates or
additional information related to that certain long-term cash flow projection and
analysis of expected liquidity previously delivered to Agent.

     (j) Concurrently with delivery to such lender of Guarantor, Borrower will make
reasonable efforts to provide any additional written information or written reports
provided by an authorized officer of Guarantor related to any cash flow projection
or analysis of expected liquidity of Guarantor provided to any other lender of
Guarantor.”

     7. Borrower hereby issues, ratifies and confirms the representations, warranties and covenants
contained in the Loan Agreement, as amended hereby. Borrower agrees that this Agreement is not
intended to and shall not cause a novation with respect to any or all of the obligations of
Borrower under the Loan Agreement. Except as expressly modified herein, the terms, provisions and
covenants of the Loan Agreement are in all other respects hereby ratified and confirmed and remain
in full force and effect.

     8. The Borrower shall pay at the time this Agreement is executed and delivered all fees,
commissions, costs, charges, taxes and other expenses incurred by the Lender and its counsel in
connection with this Agreement, including, but not limited to, a commitment fee in the aggregate
amount of Fifty Thousand and No/100 Dollars ($50,000.00) for Loan A and Loan B payable to the
Lenders on a pro rata basis and the reasonable fees and expenses of the Lender’s counsel and all
recording fees, taxes and charges.

     9. This Agreement may be executed in any number of duplicate originals or counterparts, each
of such duplicate originals or counterparts shall be deemed to be an original and all taken
together shall constitute but one and the same instrument. Borrower agrees that Lender may rely on
a telecopy of any signature of Borrower. Lender agrees that Borrower may rely on a telecopy of
this Agreement executed by Lender.

     10. Pursuant to Section 8.15 of the Loan Agreement, Borrower has been prohibited from making
cash distributions to its Sole Member. As a result, Borrower has cash on hand as a result of its
Net Operating Income being greater than Debt Service. Lender hereby consents to the withdrawal of
a portion of Borrower’s cash on hand in order to pay the commitment fee described in Section 8 of
this Agreement. Borrower’s projection of Net Operating Income from the date hereof through the
maturity date of the Loan, as provided by Borrower to Lender,

3

 

indicates that Borrower will generate sufficient funds to pay Debt Service at the interest
rate set forth in the Note as amended through the date hereof. Lender consents to Borrower’s use
of Borrower’s funds to pay Debt Service.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

4

 

     IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement under seal as of the date
and year first written above.

	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS OR ATTEST:	 	SUNRISE CONNECTICUT AVENUE ASSISTED LIVING, L.L.C.
	 	 	By:	 	Sunrise Senior Living Investments, Inc., its
sole Member
	 
	 	 	 	 	 	 	 	 
	/s/
Uma Singh

	 	 	 	By:
	 	/s/ Julie Pangelinan (SEAL)	 	 
	 

	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	Julie Pangelinan	 	 
	 

	 	 	 	 	 	Vice President
	 	 

COMMONWEALTH OF VIRGINIA, COUNTY OF FAIRFAX, TO WIT:

     On August 29, 2009, before me, Helen A. Wilson, a Notary Public in and for the Commonwealth
shown above, appeared Julie Pangelinan personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose signature is subscribed to the within instrument, and
acknowledged to me that she executed the same in her authorized capacity as Vice President of
Sunrise Senior Living Investments, Inc., sole Member of Sunrise Connecticut Avenue Assisted Living,
L.L.C., and that by her signature on the instrument the entity upon behalf of which she acted,
executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	/s/
Helen A. Wilson

	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires: 11/30/2010

My Notarial Registration Number is: 313047

 

	 	 	 	 	 
	 	LENDER:

	 
	
WITNESS: 	

CHEVY CHASE BANK, as Agent and Lender

 	 
	/s/	By:  	/s/ Claude R. Sanders (SEAL)
 	 
	 
	 	 
	 
	 	 	Claude R. Sanders 	 
	 	 	Senior Vice President 	 
	 

COMMONWEALTH/STATE OF MARYLAND, COUNTY/CITY OF MONTGOMERY, TO WIT:

     On August 28, 2009, before me, Pauline C. Ralph, a Notary Public in and for the Commonwealth
shown above, appeared Claude R. Sanders, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose signature is subscribed to the within instrument, and
acknowledged to me that he executed the same in his authorized capacity as Senior Vice President of
Chevy Chase Bank F.S.B., a division of Capital One, N.A., and that by his signature on the instrument the
entity upon behalf of which he acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	/s/
Pauline C. Ralph

	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires: 6/1/2010

My Notarial Registration Number is:

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