Document:

exv10w1

Exhibit 10.1

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (the “Agreement”) is made as of July 29, 2011 by and among CORNERSTONE
VENTURES, INC., a California corporation (“CVI”), CIP LEVERAGED FUND ADVISORS, LLC, a California
limited liability company (“CLFA”), CORNERSTONE LEVERAGED REALTY ADVISORS, LLC, a Delaware limited
liability company (the “Advisor”), SERVANT HEALTHCARE INVESTMENTS, LLC, a Florida limited
liability company (“SHI”), TERRY ROUSSEL, individually (“Roussel” and, together with CVI, CLFA and
the Advisor, the “Cornerstone Parties”), and CORNERSTONE HEALTHCARE PLUS REIT, INC., a Maryland
corporation (“CHP” and, together with CVI, CLFA, the Advisor, SHI and Roussel, the “Parties”).

RECITALS

     WHEREAS, the Advisor and CHP have entered into an Advisory Agreement, initially executed as of
September 12, 2007 (the “Advisory Agreement”);

     WHEREAS, the Advisor, CLFA and SHI have entered into a Sub-Advisory Agreement, dated as of May
19, 2008 (the “Sub-Advisory Agreement”);

     WHEREAS, CVI and SHI have entered into an Alliance Agreement, dated as of May 19, 2008 (the
“Alliance Agreement”);

     WHEREAS, the charter of CHP (the “Charter”) provides that the Total Operating Expenses (as
defined in the Charter) of CHP for the four consecutive fiscal quarters, as determined at the end
of each fiscal quarter, shall not exceed the greater of 2% of Average Invested Assets (as defined
in the Charter) or 25% of Net Income (as defined in the Charter) (the “2%/25% Guidelines”) unless
the Independent Directors Committee of the Board of Directors of CHP (the “Committee”) determines,
based on unusual and non-recurring factors that it deems sufficient, that a higher level of
expenses is justified;

     WHEREAS, the Committee has determined to focus its exploration of strategic alternatives for
CHP on the sale of CHP’s portfolio or a merger of CHP with another company, an undertaking that the
Committee has determined could be challenging without the assistance of both the Advisor and SHI;
and

     WHEREAS, the Parties hereto have agreed to certain concessions and undertakings in connection
with the continued operation of CHP’s business.

     NOW THEREFORE, in consideration of the premises, the mutual promises herein contained and
other good and valuable consideration, the adequacy and sufficiency of which are hereby
acknowledged, the Parties hereto agree as follows:

 

 

     1. Modification of Advisory Agreement. The Advisor shall continue to provide all
services that it is obligated to provide under the Advisory Agreement excluding only the services
described in the Sub-Advisory Agreement which the Parties hereby agree shall be performed by SHI
directly for the benefit of CHP (the “Advisor Services”). In addition, the Advisory Agreement is
hereby modified as provided in this Section 1 and in Section 23 of the Advisory Agreement and any
provisions in the Advisory Agreement which are inconsistent with this Section 1 shall be deemed
modified and amended hereby. All capitalized terms used in this Section 1 which have not been
defined previously shall have the meanings provided in the Advisory Agreement.

          A. The Advisor will perform the Advisor Services in a manner that complies with the 2%/25%
Guidelines, taking into account the total amount of Operating Expenses incurred by both the Advisor
and SHI. In accordance therewith:

               (i) All reasonable direct internal expenses of the Advisor shall be estimated and submitted on
a semi-monthly basis for the prior approval of the Committee and/or its financial advisor. No
Operating Expenses (other than those determined to be justified based on unusual and non-recurring
factors) shall be approved if, in the reasonable discretion of the Committee, the Committee
determines that such Operating Expenses, considered together with Operating Expenses previously
approved for the relevant period, as well as estimated Operating Expenses for the remainder of the
relevant period, would exceed the 2%/25% Guidelines.

               (ii) Operating Expenses which the Advisor deems unusual and non-recurring, including any
non-recurring internal charges relating to finance and accounting services and investor services,
as well as extraordinary director fees, extraordinary or unusual legal fees, and the fees of the
Committee’s financial and legal advisors shall be submitted to the Committee, after review by its
financial advisor, for the Committee’s determination of whether such unusual and non-recurring
expenses are justified prior to any payment thereof.

               (iii) The Asset Management Fee payable under the Advisory Agreement shall not be less than .35% nor greater than .5% of Average Invested Assets, subject to compliance with the 2%/25%
Guidelines. The Asset Management Fee payable to SHI pursuant to Section 4 of this Agreement shall
be included as an Operating Expense for the purpose of the 2%/25% Guidelines. In the event that
Operating Expenses exceed the 2%/25% Guidelines and the Asset Management Fee payable under the
Advisory Agreement and the Asset Management Fee payable under the Sub-Advisory Agreement
(collectively, the “Aggregate Asset Management Fee”) may not be paid in full, the Aggregate Asset
Management Fee paid shall be allocated between the Advisor and SHI on a pro rata basis based on an
Asset Management Fee of .35% of Average Invested Assets payable to the Advisor pursuant to the
Advisory Agreement as modified by this Agreement and an Asset Management Fee of .25% of Average
Invested Assets payable to SHI pursuant to Section 4 of this Agreement.

          B. The Disposition Fee payable to the Advisor shall not exceed .25% of the sales price of the
Property or Properties; provided, however, that no Disposition Fee shall be

-2-

 

paid to the Advisor unless the Advisor materially participates in the sale of the Properties and/or
CHP.

          C. No fees, including any Subordinated Share of Cash Flows, Subordinated Incentive Listing Fee
or Subordinated Performance Fee Due Upon Termination, shall be due to the Advisor upon the sale of
the Properties or the termination of the Advisory Agreement, other than the Disposition Fee
described above.

          D. In addition to and without limiting CHP’s right to terminate the Advisory Agreement under
Section 17 thereof, the Advisory Agreement may be terminated immediately by CHP in the event of (1)
the bankruptcy of the Advisor, CLFA or CVI or the commencement of any similar insolvency proceeding
by any such party, or (2) any material breach of the Advisory Agreement by the Advisor which (a) is
not cured within 30 days after written notice thereof or (b) in the reasonable determination of the
Committee, cannot be cured within 30 days.

          E. The Advisor shall not be entitled under the terms of the Advisory Agreement to recommend
nominees for election to the Board of Directors of CHP.

     2. Transfer of Cornerstone Interests. The Cornerstone Parties shall transfer to CHP,
for cancellation on its books and records, any and all shares of stock in CHP owned directly or
beneficially by any of them or by any subsidiary or affiliate of any of them, and shall transfer to
CHP, or its designated subsidiary or other affiliate, any and all interests in any corporation,
limited liability company, trust, partnership, joint venture or other entity which owns, directly
or indirectly, any assets that are used in the operation of CHP’s business. A list of such
interests is set forth on Schedule A attached hereto.

     3. Termination of Alliance Agreement. The Alliance Agreement is hereby terminated in
its entirety by SHI and CVI and such parties shall have no further rights, benefits or obligations
thereunder whatsoever and release each other from any and all claims that may now or hereafter
exist with respect thereto; provided, however, that reference may continue to be made to the
terminated Alliance Agreement to the extent necessary or advisable in order to interpret certain
provisions of the Sub-Advisory Agreement.

     4. Assignment and Modification of Sub-Advisory Agreement. All rights and benefits
belonging or accruing, as of the date hereof or hereafter, to any of the Cornerstone Parties under
the Sub-Advisory Agreement are, and the Sub-Advisory Agreement is, hereby assigned to CHP, or its
designated subsidiary or other affiliate, except to the extent modified hereby and CHP hereby
assumes the obligations of the Advisor thereunder from and after the date hereof. Any provisions
in the Sub-Advisory Agreement which are inconsistent with this Section 4 shall be deemed modified
and amended hereby. All capitalized terms used in this Section 4 which have not been defined
previously shall have the meanings provided in the Sub-Advisory Agreement.

          A. All references in the Sub-Advisory Agreement to the Advisor shall now be deemed to refer to
CHP.

-3-

 

          B. The fees payable to SHI under the Sub-Advisory Agreement shall consist solely of the fees
set forth below, which fees shall be payable to SHI by CHP.

               (i) The Asset Management Fee payable under the Sub-Advisory Agreement shall equal .25% of
Average Invested Assets, subject to compliance with the 2%/25% Guidelines. In the event that
Operating Expenses exceed the 2%/25% Guidelines and the Aggregate Asset Management Fee may not be
paid in full, the Aggregate Asset Management Fee paid shall be allocated between the Advisor and
SHI on a pro rata basis based on an Asset Management Fee of .35% of Average Invested Assets payable
to the Advisor pursuant to the Advisory Agreement as modified by this Agreement and an Asset
Management Fee of .25% of Average Invested Assets payable to SHI pursuant to Section 4 of this
Agreement.

               (ii) The Disposition Fee payable to SHI shall equal 1% of the sales price of the Property or
Properties (whether sold individually or together, including pursuant to a merger of CHP with
another entity); provided, however, that no Disposition Fee shall be paid to SHI if, at the time
such payment is due, CHP (as successor to the Advisor) has the right to terminate the Sub-Advisory
Agreement pursuant to Section 18(a) thereof (as modified by Section 4(D) of this Agreement). The
Disposition Fee shall be paid at the rate of 1/12th of .25% of Average Invested Assets
per month; provided, however, that up to (but not exceeding) six monthly installments of such
payments shall be credited against the final Disposition Fee payable to SHI upon the sale of the
Properties or consummation of another transaction pursuant to which CHP is sold. The Disposition
Fee payments will not be deemed Operating Expenses for the purpose of the 2%/25% Guidelines.

          C. The Parties acknowledge that neither the assignment of the Sub-Advisory Agreement to CHP,
nor any of the actions contemplated under this Omnibus Agreement, constitute an event of
termination under Section 18 of the Sub-Advisory Agreement.

          D. Sections 6(a)-(c), 6(g), 11(b), 14, 16, 17, 18(a)(iii) and 18(b)(v) of the Sub-Advisory
Agreement are hereby deleted in their entirety.

     5. Cancellation of Indebtedness. CHP hereby cancels and forgives the following
amounts which, as of May 31, 2011, are or may be due from the Advisor:

          A. $2,108,624, representing the receivable due, pursuant to the 2%/25% Guidelines, to CHP from
the Advisor in the amount of $1,618,248 for the period beginning April 1, 2010 and ending March 31,
2011, plus the projected Excess Amount (as defined in the Charter) equal to $490,400, accrued from
April 1, 2011 through May 31, 2011;

          B. $882,000, representing Acquisition Fee advances from CHP pursuant to the Advisory
Agreement; and

          C. $792,000, representing Organization and Offering Expenses advances from CHP pursuant to the
Advisory Agreement.

-4-

 

          The Advisor shall remain liable to CHP for any Excess Amount (other than amounts determined by
the Committee to be justified based on unusual and non-recurring factors) which accrues after June
1, 2011.

          6. Lender Consents. The Advisor and SHI will use their commercially reasonable
efforts to secure all consents and/or waivers which are necessary or advisable from CHP’s lenders
in connection with the transactions contemplated under this Agreement, and otherwise.

     7. Releases.

          A. Cornerstone Parties Release. Subject to applicable law, except for the rights,
duties and obligations arising under this Agreement and the documents referenced in this Agreement
(other than the Alliance Agreement), and except for Claims (as defined below) arising from fraud,
each of the Cornerstone Parties, for itself or himself and for its or his past, present, and future
stockholders, members, directors, officers, affiliates, representatives, agents, servants,
employees, successors, predecessors, and assigns, hereby completely releases, acquits and forever
discharges each of the other Parties to this Agreement and their respective past, present, and
future stockholders, trustees, directors, officers, affiliates, representatives, agents, servants,
employees, successors, predecessors, and assigns of and from any and all actions, causes of action,
claims, accountings, demands, damages, costs, losses, expenses, liabilities, attorneys fees, court
costs, and debts whatsoever of every name and nature (hereinafter individually, severally, and
collectively referred to as “Claims”), known to any of the Cornerstone Parties as of the date of
this Agreement and arising out of the conduct of CHP’s business and operations prior to the date
hereof (which shall not be deemed to include the sale of CHP’s securities).

          B. SHI Release. Subject to applicable law, except for the rights, duties and
obligations arising under this Agreement and the documents referenced in this Agreement (other than
the Alliance Agreement), and except for Claims arising from fraud, SHI, for itself and for its
past, present, and future stockholders, members, directors, officers, affiliates, representatives,
agents, servants, employees, successors, predecessors, and assigns, hereby completely releases,
acquits and forever discharges each of the other Parties to this Agreement and their respective
past, present, and future stockholders, trustees, directors, officers, affiliates, representatives,
agents, servants, employees, successors, predecessors, and assigns of and from any and all Claims
known to SHI as of the date of this Agreement and arising out of the conduct of CHP’s business and
operations prior to the date hereof (which shall not be deemed to include the sale of CHP’s
securities).

          C. CHP Release. Subject to applicable law and the Charter, except for the rights,
duties and obligations arising under this Agreement and the documents referenced in this Agreement
(other than the Alliance Agreement), and except for Claims arising from fraud, CHP, for itself and
for its past, present, and future stockholders, members, directors, officers, affiliates,
representatives, agents, servants, employees, successors, predecessors, and assigns, hereby
completely releases, acquits and forever discharges each of the other Parties to this Agreement and
their respective past, present, and future stockholders, trustees, directors, officers, affiliates,
representatives, agents, servants, employees, successors, predecessors, and assigns of and from

-5-

 

any and all Claims known to CHP as of the date of this Agreement and arising out of the conduct of
CHP’s business and operations prior to the date hereof (which shall not be deemed to include the
sale of CHP’s securities).

     8. No Admission of Liability. This Agreement is intended to be and is a settlement
and compromise of disputed claims. The execution of this Agreement, and the exchange of
consideration, releases, and other actions provided herein, are not to be construed as any
admission or concession on the part of any Party with respect to any fault, culpability or
liability.

     9. Costs. Each Party shall be responsible for all attorney’s fees and other expenses
incurred by or on behalf of such Party in respect of this Agreement and the matters contemplated
hereby, and shall have no responsibility for any fees or expenses incurred by or on behalf of any
other Party.

     10. Miscellaneous.

          A. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous
agreements, understandings, negotiations and discussions of the Parties, whether oral or written.
No amendment, supplement, modification, waiver or termination of this Agreement shall be binding
unless executed in writing by all Parties hereto, or in the case of a waiver, by the Party for whom
such benefit was intended. The headings in this Agreement are for reference purposes and shall not
affect the meaning or interpretation of this Agreement

          B. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Parties hereto and their respective successors and assigns.

          C. Severability. Any provision of this Agreement or the application thereof that is
held invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining provisions hereof, or the validity or enforceability of the
offending provision in any other situation or in any other jurisdiction.

          D. Applicable Law; Consent to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard to principles of
conflicts of laws. Any suit involving any dispute or matter arising under this Agreement may only
be brought in the federal or state courts located in the State of California. Each of the Parties
hereto consents to the exercise of personal jurisdiction by such courts with respect to all such
proceedings. EACH OF THE PARTIES HERETO HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY AND ALL RIGHTS
TO A JURY TRIAL, TO THE FULLEST EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST, IN ANY
PROCEEDING, CLAIM, COUNTER-CLAIM OR OTHER ACTION INVOLVING ANY DISPUTE OR MATTER ARISING UNDER THIS
AGREEMENT.

          E. Notice. All notices and communications pursuant to this Agreement shall be in
writing and shall be deemed properly given and effective when received if (i) personally delivered
to the applicable Party, (ii) mailed by registered or certified mail, postage prepaid, return
receipt requested, to the address of the applicable Party, (iii) sent by other delivery service

-6-

 

providing evidence of delivery to the address of the applicable Party or (iv) sent via electronic
transmission to the applicable Party.

          F. Construction. The Parties and their respective legal counsel (if they chose to
retain such counsel) each had an opportunity to participate in the negotiation and drafting of this
Agreement, and in the event of any ambiguity or mistake herein, or any dispute among the Parties
with respect to the provisions hereto, no provision of this Agreement shall be construed
unfavorably against any of the parties on the ground that it or its counsel was the drafter
thereof.

          G. Counterparts. This Agreement may be executed in counterparts, including in
facsimile and .pdf format, each of which shall be deemed an original, but all of which together
shall constitute one instrument.

The remainder of this page left is blank intentionally. Signatures follow on next page.

-7-

 

     IN WITNESS WHEREOF, the Parties have executed and delivered this Omnibus Agreement as of the
date set forth above.

	 	 	 	 	 
	 	CORNERSTONE VENTURES, INC.

 	 
	 	BY:  	/s/ Terry G. Roussel
 	 
	 	 	Name:  	Terry G. Roussel 	 
	 	 	Title:  	 	 
	 
	 	CIP LEVERAGED FUND ADVISORS, LLC

 	 
	 	BY:  	/s/ Terry G. Roussel
 	 
	 	 	Name:  	Terry G. Roussel 	 
	 	 	Title:  	 	 
	 
	 	CORNERSTONE LEVERAGED REALTY

ADVISORS, LLC

 	 
	 	BY:  	/s/ Terry G. Roussel
 	 
	 	 	Name:  	Terry G. Roussel 	 
	 	 	Title:  	 	 
	 
	 	SERVANT HEALTHCARE INVESTMENTS, LLC

 	 
	 	BY:  	/s/ John Mark Ramsey
 	 
	 	 	Name:  	John Mark Ramsey 	 
	 	 	Title:  	CEO 	 
	 
	 	                                         /s/ Terry Roussel
 	 
	 	TERRY ROUSSEL 	 
	 
	 	CORNERSTONE HEALTHCARE PLUS REIT, INC.

 	 
	 	BY:  	/s/ Sharon C. Kaiser
 	 
	 	 	Name:  	Sharon C. Kaiser 	 
	 	 	Title:  	President 	 

-8-

 

	 	 	 	 	 

SCHEDULE A

OMNIBUS AGREEMENT

CORNERSTONE VENTURES, INC., CIP LEVERAGED FUND ADVISORS, LLC,

CORNERSTONE LEVERAGED REALTY ADVISORS, LLC

CHP INTERESTS

	 	 	 	 	 
	CHP Entity	 	CHP Interest	 	Interest Holder
	Cornerstone Healthcare
Plus REIT, Inc.

	 	100 Shares
	 	Terry Roussel
	Cornerstone Healthcare Plus Operating
Partnership, LP

	 	0.15% LP Interest
	 	Cornerstone Leveraged Realty Advisors, LLC
	CGI Healthcare Operating Partnership, LP

	 	0.9% LP Interest
	 	Cornerstone Leveraged Realty Advisors, LLCexv10w2

Exhibit 10.2

Second Amendment and Waiver

dated as of August 1, 2011

among

Cornerstone Healthcare Plus Operating Partnership, L.P.,

as the Borrower,

Cornerstone Healthcare Plus Reit, Inc.,

Hedgcoxe MOB, LP,

Floral Vale, LLC

Floral Vale TRS, LLC,

Forestview Manor, LLC,

Forestview Manor TRS, LLC,

GreenTree Acquisition, LLC

and

Greentree Acquisition TRS, LLC

as the Guarantors

the Lenders from time to time parties hereto,

as Lenders

and

KeyBank National Association,

as a Lender and Agent

 

Re Credit Agreement dated as of November 19, 2010

 

 

 

Execution

Second Amendment and Waiver

     This Second Amendment and Waiver dated as of
August 1, 2011 (this “Amendment") is entered into among Cornerstone Healthcare
Plus Operating Partnership, L.P., a limited partnership
organized under the laws of the State of Delaware (the “Borrower"), Cornerstone
Healthcare Plus REIT, INC., a Maryland corporation,
Hedgcoxe MOB, LP, a limited partnership organized under the laws of Delaware,
Floral Vale, LLC, a limited liability company organized under the laws of
Delaware, Floral Vale TRS, LLC, a limited liability company organized under
the laws of Delaware, Forestview Manor, LLC, a limited liability company
organized under the laws of Delaware, Forestview Manor TRS, LLC, a limited
liability company organized under the laws of Delaware, Greentree
Acquisition, LLC, a limited liability company organized under the laws of Delaware,
Greentree Acquisition TRS, LLC, a limited liability company
organized under the laws of Delaware (each a “Guarantor” and collectively, the “Guarantors"); the
several financial institutions from time to time party to this Amendment, as Lenders (the
“Lenders"); and Keybank National Association, as a
Lender (in such capacity, “Key"), and as Agent (in such capacity, the “Agent") as provided herein.
All capitalized terms used herein without definition shall have the same meanings herein as such
terms are defined in the below defined Loan Agreement.

Witnesseth:

     Whereas, Borrower and Key, as Lender, entered into that certain Credit Agreement
dated as of November 19, 2010 (as amended, the “Loan Agreement").

     Whereas, the parties hereto wish to amend the Loan Agreement (and the Loan
Documents associated therewith) to, inter alia, (a) terminate the Revolving Credit Commitment, (b)
amend the definition of “Credit Period", (c) amend the definition of “Revolving Credit Commitment
Termination Date", (d) delete Section 2.24, and (e) amend Section 2.1.

     Now, Therefore, in consideration of the mutual covenants and agreements
herein contained, the parties hereto agree as follows:

     Section 1. Amendments. From and after the Amendment Effective Date, the Loan Documents are
hereby amended as follows:

     (a) Definitions Deleted. The following definitions are hereby deleted in their
entirety: (i) “Borrowing Notice", (ii) “Credit Period", (iii) “Facility Fee", (iv) “Facility
Fee Percentage", (v) “Future Commitment", and (vi) “Revolving Percentage".

     (b) Disposition. The definition of “Disposition” is hereby amended by deleting the same
in its entirety and inserting the following in lieu thereof:

          ““Disposition” — the sale, lease, conveyance, transfer or other disposition of
any Facility, Eligible Facility or other Property (whether in one or a series of

1

 

transactions), including accounts and notes receivable (with or without recourse),
refinancing transactions and sale-leaseback transactions other than to an
Affiliate.”

          (c) Net Asset Sale Proceeds. The definition of “Net Asset Sale Proceeds” is hereby
amended by deleting the same in its entirety and inserting the following in lieu thereof:

     ““Net Asset Sale Proceeds” — with respect to any Disposition or refinancing of
any Facility, Eligible Facility or other Property owned by Borrower or any of its
Subsidiaries (including any interests owned by Borrower or any Subsidiary in any
joint venture), an amount equal to: (a) the sum of cash payments received by
Borrower or any Subsidiary from such sale or refinancing, minus (b) any bona fide
direct costs incurred in connection with such sale or refinancing, including (i)
income or gains taxes paid or payable by the seller as a result of any gain
recognized in connection with such sale or refinancing during the tax period
applicable to the sale (after taking into account any available tax credits or
deductions and any taxsharing arrangements), (ii) payment of the outstanding
principal amount of, premium or penalty, if any, and interest on any Indebtedness
(other than the Revolving Credit Loans) that is secured by a Lien on the assets in
question and that is required to be repaid under the terms thereof as a result of
such sale or refinancing, and (iii) a reasonable reserve for any indemnification
payments (fixed or contingent) attributable to seller’s indemnities and
representations and warranties to purchaser in respect of such sale undertaken by
Borrower or any Subsidiary in connection with such sale; provided that upon release
of any such reserve, the amount released shall be considered Net Asset Sale
Proceeds.”

     (d) Required Lenders. The definition of “Required Lenders” is hereby amended by
deleting the same in its entirety and inserting the following in lieu thereof:

     ““Required Lenders” — at any time, subject to the terms of Section 2.23, Non-
Defaulting Lenders holding or being responsible for 51% or more (or, if there are
less than three (3) Non-Defaulting Lenders that are not Affiliates, 100%) of the sum
of all Revolving Exposure.”

     (e) Revolving Credit Commitment. The definition of “Revolving Credit Commitment” is
hereby amended by deleting the same in its entirety and inserting the following in lieu
thereof:

     ““Revolving Credit Commitment” — as to each Lender, the prior (and now
terminated) obligation of such Lender to make Revolving Credit Loans in the
aggregate amount set forth opposite such Lender’s name on the signature pages of the
Loan Agreement (prior to the Second Amendment and Waiver dated as of August 1, 2011)
under the caption “Revolving Credit Commitment” as such amount is subject to
reduction in accordance with the terms hereof.”

2

 

     (f) Revolving Credit Commitment Termination Date. The definition of “Revolving Credit
Commitment Termination Date” is hereby amended by deleting the same in its entirety and
inserting the following in lieu thereof:

     “Revolving Credit Commitment Termination Date” — July 31, 2012, or such later
date established in accordance with Section 2.24 hereof.”

     (g) Total Revolving Credit Commitment. The definition of “Total Revolving Credit
Commitment” is hereby amended by deleting the same in its entirety and inserting the
following in lieu thereof:

     ““Total Revolving Credit Commitment” — the amount of the Total Revolving
Exposure as of July 27, 2011, Sixteen Million Three Hundred Twenty Seven Dollars
($16,327,000), subject to reductions and limitations on further borrowing all as set
forth in Article 2.”

     (h) Revolving Commitments Terminated; No Further Advances Permitted. Section 2.1 of the
Loan Agreement is hereby amended by deleting the same in its entirety and inserting the
following in lieu thereof:

     “Section 2.1. Revolving Credit Loans. Borrower, each other Loan Party
and each Lender hereby agrees that the Lender’s respective Revolving Credit
Commitments are terminated and are no longer in force or effect and Borrower is not
entitled to request or receive any loans (individually a “Revolving Credit Loan”
and, collectively, the “Revolving Credit Loans”) hereunder. All references to any
“borrowing” or “borrowings” in the Loan Documents shall only be deemed to be
references to borrowings made prior to July 1, 2011.

     Notwithstanding any references to or use of the phrases “revolving” and
“commitment” (or similar phrases) in the Loan Documents, all Revolving Credit Loans
are now considered to be term loans and all Revolving Credit Commitments have been
previously funded. In no instance (notwithstanding any provisions to the contrary in
any of the Loan Documents) may the Borrower borrow or reborrow (from funds repaid or
otherwise) any Revolving Credit Loans.”

     (i) Sections Deleted. The following sections and exhibit are hereby deleted in their
entirety:

 —  Sections 2.3;

 —  Section 4.2;

 —  Section 6.9; and

— Exhibit G

     and the words “[Intentionally Omitted]” are inserted in lieu thereof.

3

 

     (j) Section 2.5(f). Section 2.5(f) of the Loan Agreement is hereby amended by deleting
the same in its entirety.

     (k) Section 2.7(b). Section 2.7(b) of the Loan Agreement is hereby amended by deleting
the same in its entirety and the words “[Intentionally Omitted]” are inserted in lieu
thereof.

     (l) Section 2.14. Section 2.14 of the Loan Agreement is hereby amended by deleting the
same in its entirety and inserting the following in lieu thereof:

     “Section 2.14. Pro Rata Treatment Among Lenders. Except as otherwise
provided herein: (a) [Intentionally Omitted]; (b) each partial reduction of the
Total Revolving Credit Commitment shall be applied to the Revolving Credit
Commitments of the Lenders pro rata according to each Lender’s respective Revolving
Percentage; (c) each payment and repayment of principal of or interest on Revolving
Credit Loans will be made to the Agent for the account of the Lenders pro rata in
accordance with the respective unpaid principal amounts of the Revolving Credit
Loans held by such Lenders; and (d) each conversion of Revolving Credit Loans of a
particular Type under Section 2.17 hereof (other than conversions provided for by
Section 2.20 or 2.21 hereof) shall be made pro rata among the Lenders holding
Revolving Credit Loans of such Type according to the respective principal amounts of
such Revolving Credit Loans held by such Lenders.”

     (m) Section 2.24. The first sentence of Section 2.24 of the Loan Agreement is hereby
amended by deleting the same in its entirety and inserting the following in lieu thereof:

     “Subject to the following provisions, the Borrower shall have the option to
extend the initial Revolving Credit Commitment Termination Date to October 30, 2012.”

     (n) Section 5.5. Section 5.5 of the Loan Agreement is hereby amended by deleting the
same in its entirety and inserting the following in lieu thereof:

     “Section 5.5. Monthly Information. Upon request by Agent, as soon as
available, but in any event within thirty (30) days after the end of each of each
Loan Party’s fiscal month, a financial statement for each Eligible Facility,
together with occupancy reports, rent rolls, census and operating statements for the
corresponding period of the immediately preceding fiscal month, all in reasonable
detail, each such statement to be certified in a certificate of a Responsible
Officer of Parent Guarantor as (to the best of such Responsible Officer’s knowledge,
after due inquiry into the matters being certified) accurately presenting the
financial position and the results of operations of such Eligible

4

 

Facility as at its date and for such month and as having been prepared in accordance
with GAAP (subject to year-end audit adjustments).”

     (o) Section 6.18. Section 6.18 of the Loan Agreement is hereby amended by deleting the
same in its entirety and inserting the following in lieu thereof:

     “Section 6.18. REIT Advisor. At all times (a) the REIT Sub-Advisor
shall be the Advisor to the Parent Guarantor (as more fully set forth in that
certain Omnibus Agreement dated as of July 29, 2011 among Cornerstone Ventures,
Inc.; CIP Leveraged Fund Advisors, LLC; Cornerstone Leveraged Realty Advisors, LLC;
REIT Sub-Advisor; Terry Roussel; and Parent Guarantor) and (b) John Mark Ramsey will
continue to be the Chief Executive Officer of the REIT Sub-Advisor.”

     (p) Section 6.19. A new section, Section 6.19 is hereby added to the Loan Agreement as
follows:

     “Section 6.19. Tax and Insurance Impound Account. Borrower shall
establish and maintain at all times while any Obligations remain unpaid and
outstanding an impound account (the “Impound Account”) with Agent for payment of
taxes and insurance premiums on each Eligible Facility and as additional security
for the Obligations secured by each Collateral Document. Borrower shall deposit in
the Impound Account an amount determined by Agent to be sufficient (when added to
the monthly deposits described herein) to pay the next due installment of real
estate taxes and assessments on each Eligible Facility at least one (1) month prior
to the due date or the delinquency date thereof (as Agent shall determine) and the
next due annual insurance premiums with respect to each Eligible Facility at least
one (1) month prior to the due date thereof. Commencing on the first Monthly Payment
Date after August 1, 2011 (i.e., payable on September 1, 2011) and continuing
thereafter on each Monthly Date, Borrower shall pay to Agent, concurrently with the
each payment due under the Note, deposits in an amount equal to one-twelfth (1/12)
of the amount of the annual real property taxes (“Taxes") that will next become due
and payable on each Eligible Facility (the “Monthly Tax Impound"), plus one twelfth
(1/12) of the amount of the annual insurance premiums (“Insurance Premiums") that
will next become due and payable on insurance policies which Borrower is required to
maintain hereunder (the “Monthly Insurance Impound”), each as estimated and
determined by Agent. The Monthly Tax Impound or Monthly Insurance Impound, and the
payments of interest or principal or both, payable pursuant to the Loan Documents,
shall be added together and shall be paid as an aggregate sum by Borrower to Agent.
If Agent at any time determines that the Monthly Tax Impound or Monthly Insurance
Impound is insufficient, Agent may in its discretion adjust the required monthly
payments of such amounts, and Borrower shall be obligated to pay the increased
amounts for the Monthly Tax Impound or Monthly Insurance Impound commencing with the
next monthly payment date under the Note. So long as no Event of Default or Default
has occurred and is

5

 

continuing, all sums in the Impound Account shall be held by Agent in the Impound
Account and used to pay Taxes and Insurance Premiums before the same become
delinquent. Borrower shall be responsible for ensuring the receipt by Agent, at
least thirty (30) days prior to the respective due date or the delinquency date for
payment thereof (as Agent shall determine), of all bills, invoices and statements
for all Taxes and Insurance Premiums to be paid from the Impound Account, and so
long as no Event of Default has occurred and is continuing, Agent shall pay the
governmental authority or other party entitled thereto directly to the extent funds
are available for such purpose in the Impound Account. In making any payment from
the Impound Account, Agent shall be entitled to rely on any bill, statement or
estimate procured from the appropriate public office or insurance company or agent
without any inquiry into the accuracy of such bill, statement or estimate and
without any inquiry into the accuracy, validity, enforceability or contestability of
any tax, assessment, valuation, sale, forfeiture, tax lien or title or claim
thereof. Agent shall pay no interest on funds contained in the Impound Account to
Borrower and any interest or other earnings on funds deposited in the Impound
Account shall be solely for the account of Agent. If the total funds in the Impound
Account shall exceed the amount of payments actually applied by Agent for the
purposes of the Impound Account, such excess may be credited by Agent on subsequent
payments to be made hereunder or, at the option of Agent, refunded to Borrower. In
allocating such excess, Agent may deal with the person shown on the records of Agent
to be the owner of the Property. If, however, the Impound Account shall not contain
sufficient funds to pay the sums required when the same shall become due and
payable, Borrower shall, within ten (10) days after receipt of written notice
thereof, deposit with Agent the full amount of any such deficiency. The Impound
Account shall not constitute a trust fund and may be commingled with other monies
held by Agent.”

     (q) Section 7.11(d). Section 7.11(d) of the Loan Agreement is hereby amended by
deleting the same in its entirety and inserting the following in lieu thereof:

     “(d) Liquidity. Permit (or suffer to exist), at all times, its average monthly
balance of Cash and Cash Equivalents to be less than $8,000,000.”

     Section 2. Waiver of Existing Events of Default; Reservation of Rights. Subject to receipt of
a fully executed copy of this Amendment and each of the other conditions precedent set forth in
Section 8 hereof, Agent and each Lender hereby waives any Event of Default by a Loan Party under
Section 6.9 of the Loan Agreement occurring prior to the Amendment Effective Date.

     The Loan Parties each acknowledge and agree that the Agent and Lenders have not waived any
Defaults or Events of Default (other than the Events of Default described above) or any other
covenant, agreement, terms, provisions, benefits or conditions contained in any Loan Document.

6

 

     The Agent and Lenders expressly reserve the right to exercise all remedies under the Loan
Agreement and all other Loan Documents and under applicable law, including, without limitation, any
enforcement actions, in respect of all Defaults or Events of Default (other than the Events of
Default described above). Except for the waivers to the extent expressly set forth above, the Agent
and Lenders reserve each and every right and remedy they may have under the Loan Agreement, all
other Loan Documents and under applicable law with respect to any Defaults or Events of Default
(other than the Events of Default described above).

     Section 3. Representations and Warranties. Each Guarantor and Borrower hereby represents and
warrants to Key and Agent as follows:

     (a) After giving effect to this Amendment, no Default or Event of Default has occurred
and is continuing (or would result from the amendment of the Loan Documents contemplated
hereby).

     (b) The execution, delivery and performance by each Guarantor and the Borrower of this
Amendment has been duly authorized by all necessary limited liability company and other
action and do not and will not require any registration with, consent or approval of, or
notice to or action by, any Person (including any Governmental Authority) in order to be
effective and enforceable.

     (c) This Amendment, the Guaranty (as modified by this Amendment) and each of the other
Loan Documents (as amended by this Amendment) constitute the legal, valid and binding
respective obligations of each Guarantor and Borrower, as applicable, enforceable against it
in accordance with their respective terms.

     (d) Except as set forth herein or as otherwise disclosed to Key or Agent by Borrower in
writing on or prior to the date hereof, all representations and warranties of Borrower in
the Loan Agreement (each as amended by this Amendment) are true and correct as of the date
hereof (except to the extent such representations and warranties expressly refer to an
earlier date, in which case they shall be true and correct as of such earlier date).

     (e) Borrower and Guarantors are each entering into this Amendment on the basis of its
own investigation and for its own reasons, without reliance upon Key, Agent or any other
Person.

     (f) Borrower’s and each Guarantor’s respective obligations under the Loan Agreement,
the Guaranty and under the other Loan Documents, as applicable, are not subject to any
defense, counterclaim, set-off, right of recoupment, abatement or other claim.

     Section 4. Continuing Effectiveness; Ratification of Guaranties. As herein amended, each of
the Loan Documents (including, without limitation, each Guaranty) shall remain in full force and
effect and each of the agreements, guarantees and obligations contained therein (as amended hereby)
is hereby ratified and confirmed in all respects.

7

 

     Section 5. Counterparts. This Amendment may be executed in any number of counterparts and by
the different parties on separate counterparts, and each such counterpart shall be deemed to be an
original but all such counterparts shall together constitute one and the same Amendment.

     Section 6. Governing Law. THIS AMENDMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES EXCEPT TITLE 14
OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW, OTHER THAN WITH RESPECT TO ANY ELIGIBLE
FACILITY-SPECIFIC MATTERS SUCH AS, BY WAY OF EXAMPLE AND NOT LIMITATION, ZONING AND OTHER LOCAL
LAWS, WHICH SHALL BE GOVERNED BY LAWS OF THE STATE IN WHICH SUCH ELIGIBLE FACILITY IS LOCATED.

     Section 7. Successors and Assigns. This Amendment shall be binding upon the parties hereto and
their respective successors and assigns, and shall inure to the benefit of the parties hereto, and
their respective successors and assigns.

     Section 8. Effectiveness; Post Closing Requirements. The amendments set forth herein shall
become effective on the date (the “Amendment Effective Date”) when Key shall have received (a)
counterparts of this Amendment executed by Borrower and each Guarantor, (b) payment of all costs
and expenses payable under Section 10.1 of the Loan Agreement, (c) such evidence (including,
without limitation, certified articles of organization, by-laws, resolutions and opinions of
counsel) of enforceability, authorization, execution, delivery and other corporate proceedings,
good standing and lack of conflicts as Agent shall request in connection with this Amendment and
each other Loan Document, and (d) an amendment fee in the amount of $10,000.

     Section 9. Entire Agreement. This Amendment constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, among the parties with respect to
the subject matter hereof.

[signature pages follow]

8

 

     The parties hereto have caused this Amendment to be duly executed and delivered by their duly
authorized officers as of the date first set forth above.

	 	 	 	 	 
	 	Cornerstone Healthcare Plus Operating

Partnership, L.P.

By Cornerstone Healthcare Plus REIT, Inc.,

Its General Partner

 	 
	 	By:  	/s/ Sharon C. Kaiser
 	 
	 	 	Printed Name:
 Sharon C. Kaiser 	 
	 	 	Its Authorized Representative 	 
	 
	 	KeyBank National Association, as Lender and

Agent

 	 
	 	By:  	/s/ Amy L. MacLearie
 	 
	 	 	Name:  	Amy L. MacLearie 	 
	 	 	Title:  	Assistant Vice President 	 

9

 

     Each Guarantor hereby executes this Amendment for the purpose of ratifying and confirming its
respective obligations under its respective Guaranty.

	 	 	 	 	 
	 	Cornerstone Healthcare Plus REIT, Inc.

 	 
	 	By:  	/s/ Sharon C. Kaiser
 	 
	 	 	Sharon C. Kaiser 	 
	 	 	Its President 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 

	Floral Vale, LLC, a

Delaware limited liability company	 	Floral Vale TRS, LLC, a

Delaware limited liability company
	By:	 	CGI Healthcare Operating
Partnership, L.P., its sole member	 	By:	 	Master HC TRS, LLC, a Delaware

limited liability company, its sole member	 	 
	By:	 	Cornerstone Healthcare Plus
Operating Partnership, L.P., its sole
general partner	 	By:	 	CGI Healthcare Operating
Partnership, L.P., a Delaware limited
partnership, its sole member	 	 
	By:	 	Cornerstone Healthcare Plus REIT,
Inc., its sole general partner	 	By:	 	Cornerstone Healthcare Plus
Operating Partnership, L.P., a Delaware
limited partnership, its sole general
partner	 	 
	 	 	By: 	 /s/ Sharon C. Kaiser	 	By:	 	Cornerstone Healthcare Plus REIT,	 	 
	 

	 	 	Sharon C. Kaiser
	 	 
	 	 	 	Inc., a Maryland corporation, its sole	 	 
	 

	 	 	
President
	 	 	 	By:
	 	general partner
/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Sharon C. Kaiser
President	 	 

	 	 	 	 	 	 	 

	Forestview Manor, LLC, a 

Delaware limited liability company	 	 
	By:	 	CGI Healthcare Operating
Partnership, L.P., its sole member	 	 
	By:	 	Cornerstone Healthcare Plus
Operating Partnership, L.P., its sole
general partner	 	 
	By:	 	Cornerstone Healthcare Plus REIT,
Inc., its sole general partner	 	 
	 

	 	By:
	 	/s/ Sharon C. Kaiser	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Sharon C. Kaiser
President	 	 

 

	 	 	 	 	 
	 	Forestview Manor TRS, LLC, a
Delaware
 limited liability company

 	 
	 	By:  	Master HC TRS, LLC, a Delaware limited liability company, its sole member 	 
	 
	 	By:  	CGI Healthcare Operating Partnership, L.P., a Delaware limited partnership, its sole member 	 
	 
	 	By:  	Cornerstone Healthcare Plus Operating Partnership, L.P., a Delaware limited partnership, its sole general partner
 	 
	 
	 	By:  	Cornerstone Healthcare Plus REIT, Inc., a Maryland corporation, its sole general partner 	 

	 	 	 	 	 
	 	By:  	              /s/ Sharon C. Kaiser
 	 
	 	 	Sharon C. Kaiser 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	Hedgcoxe MOB, LP, a Delaware limited

partnership

 	 
	 	By:  	Hedgcoxe MOB GP, LLC, its general partner 	 
	 
	 	By:  	CGI Healthcare Operating Partnership, L.P., its sole member 	 
	 
	 	By:  	Cornerstone Healthcare Plus Operating Partnership, L.P., its sole general partner 	 
	 
	 	By:  	Cornerstone Healthcare Plus REIT, Inc., its Sole General Partner 	 

	 	 	 	 	 
	 	By:  	              /s/ Sharon C. Kaiser
 	 
	 	 	Sharon C. Kaiser 	 
	 	 	President 	 
	 

 

	 	 	 	 	 	 	 

	Greentree Acquisition,	 	Greentree Acquisition TRS, LLC,
	LLC, a Delaware limited liability company	 	a Delaware limited liability company
	 
	By: 	 CGI Healthcare Operating
Partnership, L.P., its sole member	 	By: 	        Master HC TRS, LLC, a Delaware limited liability company, its sole member
	 
	By: 	 Cornerstone Healthcare Plus	 	By: 	        CGI Healthcare Operating
	 	Operating Partnership, L.P., its sole general partner	 	 	Partnership, L.P., a Delaware limited
partnership, its sole member
	 
	By: 	 Cornerstone Healthcare Plus REIT,	 	By: 	        Cornerstone Healthcare Plus
	 	Inc., its sole general partner	 	 	Operating Partnership, L.P., a Delaware
	 	 	 	 	 	limited partnership, its sole general
partner
	 
	 	By: 	 /s/ Sharon C. Kaiser	 	 	 	 
	 	 	Sharon C. Kaiser	 	By: 	         Cornerstone Healthcare Plus REIT,
	 	 	President	 	 	Inc., a Maryland corporation, its sole
general partner
	 
	 	 	 	 	 	By: 	 /s/ Sharon C. Kaiser
	 	 	 	 	 	 	Sharon C. Kaiser
	 	 	 	 	 	 	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]