Document:

Ex10-2

		
			EXHIBIT 10.2
		

		
			 
		

		
			TWELFTH AMENDMENT TO MASTER LEASE AND SECURITY AGREEMENT
		

		
			 
		

		
			This TWELFTH AMENDMENT TO MASTER LEASE AND SECURITY AGREEMENT (this “Amendment”) is made and entered into as of February 24, 2016, by and between the parties signatory hereto, as lessors (collectively, “Lessor”) and HCR III Healthcare, LLC, as lessee (“Lessee”).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			A.         Lessor is the current “Lessor” and Lessee is the current “Lessee” pursuant to that certain Master Lease and Security Agreement dated as of April 7, 2011, as amended by that certain First Amendment to Master Lease and Security Agreement dated as of April 7, 2011, as further amended by that certain Second Amendment to Master Lease and Security Agreement dated as of May 16, 2011, Third Amendment to Master Lease and Security Agreement dated as of January 10, 2012, Fourth Amendment to Master Lease and Security Agreement dated as of April 18, 2012, Fifth Amendment to Master Lease and Security Agreement dated as of May 4, 2012 (incorrectly referred to as dated May 5, 2012 in certain amendments due to a scrivener’s error), Sixth Amendment to Master Lease and Security Agreement dated as of May 30, 2012 (incorrectly referred to as dated July 30, 2012 in certain amendments due to a scrivener’s error), Seventh Amendment to Master Lease and Security Agreement dated as of February 11, 2013,  Eighth Amendment to Master Lease and Security Agreement dated as of July 31, 2014, Ninth Amendment to Master Lease and Security Agreement dated as of September 30, 2014 (the “Ninth Amendment”), Tenth Amendment to Master Lease and Security Agreement dated as of March 29, 2015 (the “Tenth Amendment”), Eleventh Amendment to Master Lease and Security Agreement dated as of August 1, 2015, Addendum #1 to Master Lease and Security Agreement dated as of October 23, 2015, Addendum #2 to Master Lease and Security Agreement dated as of November 2, 2015, Addendum #3 to Master Lease and Security Agreement dated as of December 16, 2015, and Addendum #4 to Master Lease and Security Agreement dated as of February 16, 2015 (as so amended, the “Master Lease”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Master Lease.
		

		
			 
		

		
			B.         Lessee’s obligations under the Master Lease are guaranteed by HCR ManorCare, Inc., a Delaware corporation, successor in interest to HCR ManorCare LLC, a Delaware limited liability company, pursuant to that certain Guaranty of Obligations dated as of April 7, 2011 (as the same may have been or may hereafter be further amended, modified, or reaffirmed from time to time on accordance with the terms thereof, the (“Guaranty”).  
		

		
			 
		

		
			C.         Lessor and Lessee desire to amend the Master Lease to modify certain provisions of the Ninth Amendment and Schedule 1 attached to the Tenth Amendment as more particularly provided herein.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

AGREEMENT
		

		
			 
		

		
			NOW THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby agree as follows:
		

		
			 
		

		
			1.         Recitals.  The foregoing recitals are adopted by Lessor and Lessee as true and correct and, by this reference, are incorporated herein as if set forth herein in full. 
		

		
			2.        Modifications to Ninth Amendment.  
		

		
			(a)       The Master Lease is hereby modified by deleting Recital E from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “Reference is made to the Pool 3 Facility identified on Exhibit A-3 to the Master Lease as “Old Orchard Health Care Center,” located on the land identified on said Exhibit as 4100 Freemansburg Avenue, Easton, PA 18045 (the “Old Orchard Facility”).  Lessee desires to develop a sixty-four (64) bed assisted living facility (as used herein and in the Master Lease, the “Arden Courts of Old Orchard Facility”) on behalf of Lessor on the land located adjacent to the Old Orchard Facility and more particularly described as the crosshatched area shown on Exhibit B attached hereto (the “Arden Land”) and thereafter lease from Lessor pursuant to the Master Lease, the Arden Courts of Old Orchard Facility.  The Arden Land is currently being leased to Lessee by Lessor pursuant to the Master Lease, and Lessor is willing to agree to such development and lease, under the terms and conditions set forth in this Amendment.”
		

		
			(b)       The Master Lease is hereby modified by deleting the heading of Section 4 from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “Construction of Arden Courts of Old Orchard Facility.”
		

		
			(c)       The Master Lease is hereby modified by deleting Section 4(a) from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “Lessor hereby requests Lessee to construct and Lessee hereby agrees to construct the Arden Courts of Old Orchard Facility on behalf of Lessor, pursuant to the terms and conditions set forth in this Amendment.  Notwithstanding anything to the contrary contained in the Master Lease, including, without limitation, Section 6.3 thereof, within 360 days of “Substantial Completion” (as hereinafter defined) of construction of the Arden Courts of Old Orchard Facility, Lessee will lease the Arden Courts of Old Orchard Facility pursuant to the Master Lease from Lessor (such date, the “Arden Courts of Old Orchard Lease Start Date”).  Lessee will determine the Arden Courts of Old Orchard Lease Start Date, by providing at least thirty (30) days prior written notice to Lessor within three hundred (300) days after Substantial Completion.  If Lessee does not provide such written notice to Lessor within three hundred (300) days after Substantial Completion, then Lessor shall have the right to determine the Arden Courts of Old Orchard Lease Start Date, which shall be within such 360 day period following Substantial Completion, by providing written notice to Lessee.  As used herein, “Substantial Completion” means the date on which Lessor has received from Lessee an Officer's Certificate stating the following:  (i) Lessee has received a copy of the certificate of occupancy for the Arden Courts of Old Orchard Facility from the applicable Governmental Authority; (ii) Lessee has received copies of all
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

necessary permits, approvals, healthcare licenses and Medicare certifications necessary for the operation of the Arden Courts of Old Orchard Facility; (iii) Lessee has received copies of lien releases from all parties that provided labor or materials for construction of the Arden Courts of Old Orchard Facility; (iv) the Arden Courts of Old Orchard Facility has commenced regular business operations; and (v) construction of the Arden Courts of Old Orchard Facility has been substantially completed in accordance with the plans and specifications and the applicable provisions of this Amendment and the Master Lease, except for punch-list items that remain to be completed.”
		

		
			(d)       The Master Lease is hereby modified by deleting Section 4(b) from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “In connection with Lessee’s construction of the Arden Courts of Old Orchard Facility pursuant to the request of, and on behalf of, Lessor, Lessor shall reimburse Lessee for its costs, expenses and fees related to such construction (including, without limitation, a lease inducement fee and a construction management fee) in the total amount of Fifteen Million Dollars ($15,000,000.00) (the “Arden Courts of Old Orchard Construction Fee”), which such amount shall be payable by Lessor to Lessee on the Arden Courts of Old Orchard Lease Start Date.  Additionally, on or before the Arden Courts of Old Orchard Lease Start Date, Lessee shall supply or cause to be supplied to Lessor all documents and information pertaining to the construction of the Arden Courts of Old Orchard Facility as Lessor shall reasonably request (including, without limitation, any and all plans and specifications and all building, foundation, grading or other permits and/or authorizations necessary for the construction of the Arden Courts of Old Orchard Facility, and copies of the certificate of occupancy for the Arden Courts of Old Orchard Facility, copies of all necessary permits, approvals, healthcare licenses and Medicare certifications necessary for the operation of the Arden Courts of Old Orchard Facility) and Lessee shall also assign to Lessor each construction contract to which Lessee is a party and all guaranties and warranties relating thereto.  For purposes of clarity, the Arden Courts of Old Orchard Facility is and will remain Lessor’s property during and after the construction thereof and Lessee shall have no ownership rights thereto except as a lessee under the Master Lease.”
		

		
			(e)       The Master Lease is hereby modified by deleting the phrase “the closing of the Purchase Transaction or the Closing Date, each” from Section 3(d)(ii) from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “the Arden Courts of Old Orchard Lease Start Date,”.
		

		
			(f)       The Master Lease is hereby modified by deleting the term “Closing Date” from Sections 4(c), 4(c)(i)(2), 4(c)(ii)(4)(a), 4(c)(ii)(4)(b), 4(c)(ii)(4)(c), 4(c)(iii)(2), and 4(c)(iii)(3) from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “Arden Courts of Old Orchard Lease Start Date”.
		

		
			(g)       The Master Lease is hereby modified by deleting the phrase “the closing of the Purchase Transaction on the Closing Date” from Sections 4(c)(i), 4(c)(ii) and 4(c)(iii) from the Ninth Amendment in its entirety and replacing it with the following in lieu thereof:  “the Arden Courts of Old Orchard Lease Start Date”.
		

		
			 
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

(h)       The Master Lease is hereby modified by deleting the phrase “and the closing of the Purchase Transaction” from Section 5 of the Ninth Amendment in its entirety.
		

		
			3.         Arden Courts of Old Orchard Lease Start Date.  The parties hereby acknowledge and agree that the Arden Courts of Old Orchard Lease Start Date shall be February 24, 2016.  Concurrently with the execution of this Amendment, Lessor shall pay to Lessee the Arden Courts of Old Orchard Construction Fee as reimbursement for the construction of the Arden Courts of Old Orchard Facility on behalf of Lessor.  Notwithstanding anything to the contrary contained herein or in the Master Lease, Allocated Minimum Rent for the Arden Courts of Old Orchard Facility for the month of February 2016 commencing as of the Arden Courts of Old Orchard Lease Start Date shall be due and payable on March 1, 2016 (together with all other Allocated Minimum Rent due on such date pursuant to the Master Lease). 
		

		
			4.Schedule 1 (Additional Facilities).  The Master Lease is hereby amended, effective as of October 23, 2015, by deleting Schedule 1 (Additional Facilities) attached to the Tenth Amendment in its entirety and replacing it with Schedule 1 attached hereto in lieu thereof.  The parties hereby acknowledge and agree that the revised Schedule 1 attached hereto does not impact or affect in any way the Initial Deferred Rent Obligation or the Deferred Rent Obligation, as both terms are defined in the Tenth Amendment, or the provisions related thereto contained in the Tenth Amendment.
		

		
			5.         Tranche B Rental Factor.  For purposes of clarity, the parties hereby acknowledge and agree that the Tranche B Rental Factor (as defined in Section 3.5.3 of the Master Lease) shall be calculated as being compounded annually. 
		

		
			6.         Further Assurances.  The parties agree to promptly sign all documents reasonably requested to give effect to the provisions of this Amendment.
		

		
			7.         Effect of Amendment.  All references in the Master Lease to the “Master Lease” shall be deemed to be references to the Master Lease as amended hereby. 
		

		
			8.         Full Force and Effect; Acknowledgement.  The Master Lease, as hereby amended, shall remain and continue in full force and effect.
		

		
			9.Counterparts; Facsimile or Electronically Transmitted Signatures.  This Amendment may be executed in any number of counterparts, all of which shall constitute one and the same instrument.  Signatures transmitted by facsimile or other electronic means may be used in place of original signatures on this Amendment, and Lessor and Lessee both intend to be bound by the signatures on the document transmitted by facsimile or such other electronic means.
		

		
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		762749.03-LACSR01A - MSW

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first written above.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						“Lessor”

				
	
					
						HCP PROPERTIES, LP, a Delaware limited partnership

				
	
					
						By:    HCP I-B Properties, LLC, a Delaware limited liability company, its General Partner

				
	
					
						HCP WEST VIRGINIA PROPERTIES, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF ALEXANDRIA VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF ARLINGTON VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF MIDWEST CITY OK, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF OKLAHOMA CITY (NORTHWEST), LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF OKLAHOMA CITY (SOUTHWEST), LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF TULSA OK, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-ARDEN COURTS OF ANNANDALE VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-CHARLESTON OF HANAHAN SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-COLUMBIA SC, LLC, a Delaware limited liability company

				

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

	
					
						HCP PROPERTIES-FAIR OAKS OF FAIRFAX VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-IMPERIAL OF RICHMOND VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-LEXINGTON SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-MEDICAL CARE CENTER-LYNCHBURG VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT EAST-GREENVILLE SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT OF UNION SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT WEST-GREENVILLE SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-STRATFORD HALL OF RICHMOND VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-WEST ASHLEY-CHARLESTON SC, LLC, a Delaware limited liability company

				
	
					
						HCP MARYLAND PROPERTIES, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-SALMON CREEK WA,  LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-WINGFIELD HILLS NV, LLC, a Delaware limited liability company

				
	
					
						 

					
						 

					
						 

				

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

	
					
						HCP PROPERTIES-UTICA RIDGE  IA, LLC, a Delaware limited liability company

				
	
					
						HCR TWINSBURG OH PROPERTY, LLC, a Delaware limited liability company 

				
	
					
						By:

					
					
						/s/ Darren Kowalske

				
	
					
						Name:

					
					
						Darren Kowalske

				
	
					
						Title:

					
					
						Executive Vice President

				

		
			 
		

		
			 
		

		
			 
		

			
					
						HCR STERLING HEIGHTS MI PROPERTY, LLC, a Delaware limited liability company

				
	
					
						By:      HCR Schoenherr Road Property, LLC, a Delaware limited liability company, its sole member

				
	
					
						By:      HCP Properties, LP, a Delaware limited partnership, its sole member

				
	
					
						By:      HCP I-B Properties, LLC, a Delaware limited liability company, its General Partner

				

		
			 
		

			
					
						By:

					
					
						/s/ Darren Kowalske

				
	
					
						Name:

					
					
						Darren Kowalske

				
	
					
						Title:

					
					
						Executive Vice President

				

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

 
		

			
					
						“Lessee”

				
	
					
						HCR III HEALTHCARE, LLC, a Delaware limited liability company

					
						 

				

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Martin D. Allen

				
	
					
						Name:

					
					
						Martin D. Allen

				
	
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

CONSENT, REAFFIRMATION AND AGREEMENT OF GUARANTOR
		

		
			 
		

		
			Guarantor hereby (i) reaffirms all of its obligations under the Guaranty, (ii) consents to the foregoing Amendment and (iii) agrees that its obligations under the Guaranty shall extend to Lessee’s duties, covenants and obligations pursuant to the Master Lease, as amended pursuant to the foregoing Amendment.
		

		
			 
		

			
					
						HCR MANORCARE, INC., a Delaware corporation

				

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Martin D. Allen

				
	
					
						Name:

					
					
						Martin D. Allen

				
	
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		762749.03-LACSR01A - MSW

 

SCHEDULE 1
		

		
			Additional Facilities
		

			
					
						Facility

					
					
						Facility Owner/
Lessor

					
					
						Facility Description
and Primary Intended Use

					
					
						Initial Monthly Allocated Minimum Rent(1)

					
					
						Allocated Initial Investment

					
					
						Fixed
Term

					
					
						1st
Extended
Term

					
					
						2nd
Extended
Term

					
					
						HCP ID

				
	
					
						To be included in Pool 4

				
	
					
						MCNRC Winter Park

					
						2075 Loch Lomond Dr 
Winter Park, FL 32792

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 138 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2345

				
	
					
						MCHS Washington Twn

					
						378 Fries Mill Road 
Sewell, NJ 08080

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 

					
						with 
Pool 4

					
						Facilities

					
					
						13 years

					
					
						5 years

					
					
						2348

				
	
					
						MCHS Wingfield Hills

					
						2350 Wingfield Hills Road 
Sparks, NV 89436

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2342

				
	
					
						MCHS Utica Ridge

					
						3800 Commerce Blvd. 
Davenport, IA 52807

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 

					
						with 
Pool 4

					
						Facilities

					
					
						13 years

					
					
						5 years

					
					
						2343

				
	
					
						MCHS Salmon Creek

					
						2811 N.E. 139th Street 
Vancouver, WA 98686

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2344

				
	
					
						MCHS Lacey

					
						4524 Intelco Loop SE 
Lacey, WA 98503

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2349

				
	
					
						MCHS Sterling Heights

					
						38200 Schoenherr Road 
Sterling Heights, MI 48312

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2350

				
	
					
						Heartland of Dublin

					
						4075 W. Dublin-Granville Road Dublin, OH 43017

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2347

				
	
					
						Heartland of Twinsburg

					
						8551 Darrow Road 
Twinsburg, OH 44087

					
					
						HCP Properties, LP

					
					
						Skilled nursing facility / long term care facility consisting of 120 beds

					
					
						[***]

					
					
						[***]

					
					
						Coterminus 
with 
Pool 4 
Facilities

					
					
						13 years

					
					
						5 years

					
					
						2346

				

		
			(1)If the closing for any Additional Facility does not occur before April 1, 2016, then the Initial Monthly Allocated Minimum Rent for such Additional Facility will be increased by three percent (3%).
		

		
			Portions of this schedule that have been marked by [***] have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.
		

		 

		

			 

		

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			EXHIBIT 10.3

		

		
			ADDENDUM #4 TO MASTER LEASE AND SECURITY AGREEMENT
		

		
			This ADDENDUM #4 TO MASTER LEASE AND SECURITY AGREEMENT (this “Addendum”) is made and entered into as of February 16, 2016, by and between the parties signatory hereto, as lessors (collectively, “Lessor”) and HCR III Healthcare, LLC, as lessee (“Lessee”).
		

		
			RECITALS
		

		
			A.     Lessor is the current “Lessor” and Lessee is the current “Lessee” pursuant to that certain Master Lease and Security Agreement dated as of April 7, 2011 (as the same may have been amended, restated or otherwise modified prior to the date hereof, the “Master Lease”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Master Lease.
		

		
			B.     Lessee’s obligations under the Master Lease are guaranteed by HCR ManorCare, Inc., a Delaware corporation, successor in interest to HCR ManorCare, LLC, a Delaware limited liability company, pursuant to that certain Guaranty of Obligations dated as of April 7, 2011 (as the same may heretofore have been or may hereafter be further amended, modified or reaffirmed from time to time in accordance with the terms thereof, the “Guaranty”).
		

		
			C.     Pursuant to Section 12 of that certain Tenth Amendment to Master Lease and Security Agreement, dated as of March 29, 2015 and effective as of April 1, 2015 (the “Tenth Amendment”), by and among Lessor, Lessee and Guarantor, Lessor, Lessee and Guarantor desire to add the real property more particularly described on Exhibit A attached hereto (the “Additional Facility”) to the Leased Property under the Master Lease.
		

		
			AGREEMENT
		

		
			NOW THEREFORE, in consideration of the foregoing Recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby agree as follows:
		

		
			1.     Lessee’s Representations and Warranties.  Lessee hereby represents and warrants to Lessor that the Additional Facilities Owners have delivered to Lessor the materials and documentation required pursuant to Section 12 of the Tenth Amendment and that, to Lessee’s knowledge, (i) all such materials and documentation were true, correct and complete at the time delivered and (ii) there have been no changes affecting any such materials or documentation or any information disclosed thereby, that would interfere with or materially adversely affect the consummation of the transactions contemplated hereby, that have not been previously disclosed by Lessee or Guarantor to Lessor in writing.
		

		
			2.     Additional Facility. The Master Lease is hereby amended to modify the “Pool 4 Facilities” to add the Additional Facility thereto and Lessor hereby 
		

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		
			leases to Lessee, and Lessee hereby leases from Lessor, as part of the Leased Property, all of Lessor’s right, title and interest in and to the Additional Facility, including any improvements currently and to be located thereon, subject to all of the terms, conditions and provisions of the Master Lease, as it is hereby, and may be hereafter, amended, supplemented, restated or otherwise modified.
		

		
			3.     Additional Lessors.  In connection with the Additional Facility, the Master Lease is hereby amended to add the following entity as Lessor under the Master Lease:  HCR Sterling Heights MI Property, LLC, a Delaware limited liability company.
		

		
			4.     Opco Sublease:  Schedule 4 to the Master Lease is hereby amended to add the following operating sublease thereto:  
		

		
			ManorCare Health Services, LLC d/b/a Heartland Health Care Center – Sterling Heights
		

		
			5.     Sterling Heights Addition:  Lessor hereby consents to the development and construction of that certain addition to the Additional Facility, which will include adding up to 40 skilled nursing facility beds to the Additional Facility, at a cost that is expected to exceed One Million Five Hundred Thousand Dollars ($1,500,000), subject to Lessee complying with the conditions set forth in the Master Lease, including without limitation Section 10.2.2. thereof.
		

		
			6.     Effect of Addendum. All references in the Master Lease to “this Lease” shall be deemed to be references to the Master Lease as amended hereby.
		

		
			7.     Full Force and Effect; Acknowledgement. The Master Lease, as hereby amended, shall remain and continue in full force and effect.
		

		
			8.     Counterparts; Facsimile or Electronically Transmitted Signatures. This Addendum may be executed in any number of counterparts, all of which shall constitute one and the same instrument. Signatures transmitted by facsimile or other electronic means may be used in place of original signatures on this Addendum, and Lessor and Lessee both intend to be bound by the signatures on the document transmitted by facsimile or such other electronic means.
		

		
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			764135.01A-LACSR01A - MSW

		

 

		

			 

		

IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed as of the day and year first written above.
		

		
			 
		

		
			 
		

			
					
						 

				
	
					
						“Lessor”

				
	
					
						HCP PROPERTIES, LP, a Delaware limited partnership

				
	
					
						By:    HCP I-B Properties, LLC, a Delaware limited liability company, its General Partner

				
	
					
						HCP WEST VIRGINIA PROPERTIES, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF ALEXANDRIA VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF ARLINGTON VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF MIDWEST CITY OK, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF OKLAHOMA CITY (NORTHWEST), LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF OKLAHOMA CITY (SOUTHWEST), LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES OF TULSA OK, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-ARDEN COURTS OF ANNANDALE VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-CHARLESTON OF HANAHAN SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-COLUMBIA SC, LLC, a Delaware limited liability company

				

		
			 
		

		

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		

			 

		

	
					
						HCP PROPERTIES-FAIR OAKS OF FAIRFAX VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-IMPERIAL OF RICHMOND VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-LEXINGTON SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-MEDICAL CARE CENTER-LYNCHBURG VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT EAST-GREENVILLE SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT OF UNION SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-OAKMONT WEST-GREENVILLE SC, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-STRATFORD HALL OF RICHMOND VA, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-WEST ASHLEY-CHARLESTON SC, LLC, a Delaware limited liability company

				
	
					
						HCP MARYLAND PROPERTIES, LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-SALMON CREEK WA,  LLC, a Delaware limited liability company

				
	
					
						HCP PROPERTIES-WINGFIELD HILLS NV, LLC, a Delaware limited liability company

				

		
			 
		

		
			 
		

		
			 
		

		

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		

			 

		

	
					
						 

					
					
						 

				
	
					
						HCP PROPERTIES-UTICA RIDGE  IA, LLC, a Delaware limited liability company

				
	
					
						HCR TWINSBURG OH PROPERTY, LLC, a Delaware limited liability company 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Darren Kowalske

				
	
					
						Name:

					
					
						Darren Kowalske

				
	
					
						Title:

					
					
						Executive Vice President

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						HCR STERLING HEIGHTS MI PROPERTY, LLC, a Delaware limited liability company

				
	
					
						By:HCR Schoenherr Road Property, LLC, a Delaware limited liability company, its sole member

				
	
					
						By:HCP Properties, LP, a Delaware limited partnership, its sole member

				
	
					
						By:HCP I-B Properties, LLC, a Delaware limited liability company, its General Partner

				
	
					
						

					
					
						 

				
	
					
						By:

					
					
						/s/ Darren Kowalske

				
	
					
						Name:

					
					
						Darren Kowalske

				
	
					
						Title:

					
					
						Executive Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			
		

		
			

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		

			 

		

IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed as of the day and year first written above.
		

		
			 
		

		
			 
		

			
					
						 

				
	
					
						“Lessee”

				
	
					
						HCR III HEALTHCARE, LLC, a Delaware limited liability company

				

			
					
						aniel

					
					
						 

				
	
					
						By:

					
					
						/s/ Daniel H. Kight

				
	
					
						Name:

					
					
						Daniel H. Kight

				
	
					
						Title:

					
					
						Treasurer

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		

			 

		

Addendum #4
		

		
			CONSENT, REAFFIRMATION AND AGREEMENT OF GUARANTOR
		

		
			Guarantor hereby (i) reaffirms all of its obligations under the Guaranty, (ii) consents to the foregoing Addendum and (iii) agrees that its obligations under the Guaranty shall extend to Lessee’s duties, covenants and obligations pursuant to the Master Lease, as amended or modified pursuant to the foregoing Addendum.
		

		
			 
		

			
					
						 

				
	
					
						HCR MANORCARE, INC., a Delaware corporation

				

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Daniel H. Kight

				
	
					
						Name:

					
					
						Daniel H. Kight

				
	
					
						Title:

					
					
						Treasurer

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

		

 

		

			 

		

EXHIBIT A

Legal Description of Additional Property

		

		
			A part of the Northwest 1/4 of Section 24, Town 2 North, Range 12 East, City of Sterling Heights, Macomb County, Michigan, more particularly described as: Commencing at the West 1/4 corner of said Section 24; thence North 89 degrees 30 minutes 22 seconds East, 623.10 feet along the East-West 1/4 line of Section 24, (Plumbrook Road); thence North 33 degrees 19 minutes 38 seconds West, 63.21 feet to the point of beginning; thence continuing North 33 degrees 19 minutes 38 seconds West, 334.27 feet to a point on the Easterly line of Schoenherr Road (204 feet wide); thence North 08 degrees 48 minutes 48 seconds East, 573.95 feet along said line to a point on the Southerly line of Utica Road (60 feet wide Southerly right-of-way); thence South 56 degrees 53 minutes 40 seconds East, 706.01 feet along said line; thence South 01 degrees 44 minutes 52 seconds West, 248.88 feet; thence South 89 degrees 30 minutes 22 seconds West, 453.07 feet; thence South 09 degrees 35 minutes 21 seconds West, 210.13 feet to the point of beginning.
		

		
			Surveyed as:
		

		
			Land situated in the City of Sterling Heights, Macomb County, Michigan, described as: a part of the Northwest 1/4 of Section 24, Town 2 North, Range 12 East, City of Sterling Heights, Macomb County, Michigan, more particularly described as: Commencing at the West 1/4 corner of said Section 24; thence along the centerline of Plumbrook Road (86 feet wide) North 89 degrees 27 minutes 00 seconds East, 623.10 feet; thence North 33 degrees 23 minutes 00 seconds West, 63.21 feet to the Point of Beginning; thence North 33 degrees 23 minutes 00 seconds West, 334.27 feet to a point on the Easterly Right of Way of Schoenherr Road (204 feet wide); thence along the Easterly Right of Way line of said Schoenherr Road North 08 degrees 45 minutes 26 seconds East, 573.95 feet to point of intersection of the Easterly Right of Way line of said Schoenherr Road and the Southerly Right of Way line of Utica Road (120 feet wide); thence along the Southerly Right of Way line of said Utica Road South 56 degrees 57 minutes 02 seconds East, 706.01 feet; thence South 01 degrees 41 minutes 30 seconds West, 249.88 feet to a point on the North line of "Plumbrook Professional Centre" Condominium (M.C.C.P. No. 1014); thence along the North line of "Plumbrook Professional Centre" Condominium South 89 degrees 27 minutes 00 seconds West, 453.08 feet; thence South 09 degrees 31 minutes 59 seconds West, 210.13 feet to the Point of Beginning.
		

		 

		

			 

		

		

			764135.01A-LACSR01A - MSW

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]