Document:

ex105714.htm

 

(FRETUS)

 

SECOND AMENDMENT TO PROMISSORY NOTE (AMENDED AND RESTATED)

 

THIS SECOND AMENDMENT TO PROMISSORY NOTE (AMENDED AND RESTATED) (this “Second Amendment”) is executed as of the 1st day of July, 2011 (the “Effective Date”), by and between FRETUS INVESTORS LP, a Delaware  limited partnership, having an address at 3131 Elliott Avenue, Suite 500, Seattle, Washington 98121 (the “Borrower”), and CAPMARK BANK, a Utah industrial bank, having an address at 6955 Union Park Center, Suite 330, Midvale, Utah 84047, together with its successors and assigns (the “Lender”).

 

RECITALS

 

A.           Borrower executed to the order of Lender that certain Promissory Note (Amended and Restated) dated May 1, 2008, in the principal amount of $16,800,000.00, as amended by that certain First Amendment to Promissory Note dated December 31, 2008, which reduced the principal amount to $4,350,000 (the “Note”).  Unless otherwise defined herein, capitalized terms shall have the meaning assigned to them in the Note.

 

B.           Borrower has requested that Lender modify certain terms of the Note and Lender has so agreed, on the terms and conditions contained herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the above Recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby amend the Note as follows:

 

1.   Section 1.4 of the Note, Note Rate and Note Rate Adjustment Dates, is hereby amended by deleting the first sentence thereof and replacing it, as of the Effective Date, with the following:

 

“The “2011 Note Rate” shall mean an interest rate charged beginning on the Effective Date and continuing through December 31, 2011, which is the average of London Interbank Offered Rates (“LIBOR”), in U.S. dollar deposits, for a term of one month determined solely by Lender on each Note Rate Adjustment Date (defined below), but not less than two and one-half percent (2.50%), plus four percent (4.00%) (“2011 Margin”).  Beginning January 1, 2012, the “2012 Note Rate” charged shall be LIBOR for a term of one month determined solely by Lender on each Note Rate Adjustment Date, but not less than two and one-half percent (2.50%), plus five percent (5.00%) (“2012 Margin”; the 2011 Margin and the 2012 Margin, as then in effect, may be referred to herein as the “Margin”), which combined figure shall be rounded upwards to the nearest one-eighth percent (.125%). The term “Note Rate” shall mean either the 2011 Note Rate or the 2012 Note Rate as applicable at the time the Note Rate is charged.

 

1

 

1/2200460.2

  

  

  

(FRETUS)

2.    Section 4 of the Note, Maturity Date, is hereby amended as of the Effective Date to extend the Maturity Date from March 1, 2012, until November 1, 2012.   All references in the Note to the “Maturity Date” are hereby amended to mean November 1, 2012.

 

3.   Except as expressly amended herein, the Note shall remain in full force and effect in accordance with its terms and conditions.

 

5.           This Second Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute but one and the same instrument.

      IN WITNESS WHEREOF, Borrower and Lender have each caused this Second Amendment to be duly executed and delivered on its behalf by its duly authorized representatives, on the day and year first above written.

 

                                                                            BORROWER:

FRETUS Investors El Paso LP, a

Delaware limited partnership

By:           Village Oaks Cielo Vista Investors

LLC, a Delaware limited liability company

Its:           General Partner

By:           FRETUS Investors LLC, a

Washington limited liability company

Its:           Managing Member

	
  

	
By:

	
Emeritus Corporation,

a Washington corporation

Its:           Administrative Member

By:    /s/ Eric Mendelsohn                                         

Eric Mendelsohn

Its:           Senior Vice President Corporate  Development

2

 

1/2200460.2

  

  

  

(FRETUS)

 

Acknowledged by Guarantor

this ____ day of July, 2011

EMERITUS CORPORATION, a

Washington corporation

By:  /s/ Eric Mendelsohn                                        

       Eric Mendelsohn,

       Senior Vice President Corporate Development

3

 

1/2200460.2

  

  

  

(FRETUS)

	
  

	
CAPMARK BANK, a Utah industrial bank

                                            By:           /s/ Laura Y. McDonald                 

                                            Name:        Laura Y. McDonald   

                                            Title:           Senior Vice President/Managing Director

4

 

1/2200460.2ex106717.htm

(HCPI-I)

SECOND AMENDMENT TO LOAN AGREEMENT

This Second Amendment to Loan Agreement (this "Second Amendment") is effective as of this 1st day of July, 2011, by and between by and among the four (4) Delaware limited liability companies or limited partnerships listed on Schedule A attached hereto and made a part hereof (together with their respective successors and assigns, the “Borrowers”, and individually, a “Borrower”), and CAPMARK BANK, a Utah industrial bank (together with its successors and assigns, “Lender”).

Recitals

A.           Borrowers and Lender executed that certain Loan Agreement dated August 15, 2007, as amended by First Amendment dated December 31, 2008 (the “Loan Agreement”). Unless otherwise defined herein, capitalized terms shall have the meanings assigned to them in the Loan Agreement.

     B.               The Borrowers have requested that the Lender extend the Maturity Date of the Note and the Lender has agreed on the terms and conditions contained herein.

Agreement

NOW, THEREFORE, in consideration of the above Recitals, the parties hereby agree as follows:

1. In Section 1.1 of the Loan Agreement, the definition of “Maturity Date” is hereby amended to delete the date of “January 2, 2012” and replace it with “November 1, 2012”.  All references in the Loan Agreement to the Maturity Date are hereby amended to mean November 1, 2012.

2. Borrowers and Related Borrowers, as described herein, have entered into that certain Amended and Restated Cross-Collateralization, Cross-Default and Mortgage Modification Agreement of even date herewith whereby the loans made to the Borrowers and the Related Borrowers, and the security pledged therefor, are cross-collateralized and cross-defaulted.

3. The Loan Agreement is hereby amended to include the following definitions in Section 1.1:

““Cross Collateralization Agreement” means that certain Cross-Collateralization, Cross-Default and Mortgage Modification Agreement dated as of July 1, 2011, by and between the Lender, Borrowers and the Related Borrowers.”

““Loans” means, collectively, the Loan made by Lender to the Borrower and the loans made by Lender to the Related Borrowers, more particularly described in the Cross-Collateralization Agreement.”

  

  

  

““HCPI 2 Borrowers” means those entities more particularly described on Exhibit G attached hereto, to whom Lender made loans more particularly described on Exhibit G attached hereto.”

 ““Related Borrowers” means those entities more particularly described on Exhibit H attached hereto to whom the Lender made certain loans more particularly described on Exhibit H attached hereto.”

4. The Loan Agreement is hereby amended to include a new Section 5.15 as follows:

“5.15 Sale of Assets: Release of Facility.  Sell, assign, lease or otherwise dispose of (whether in one transaction or in a series of transactions, and whether by asset sale or equity sale, the following facilities owned by the Borrower and the Related Borrowers (the “Related Facilities”), without the prior written consent of the Lender, which consent may be granted or refused in Lender’s sole discretion.  Notwithstanding anything to the contrary in this Section 5.15, the Related Facilities may be released from the lien of the applicable mortgage prior to payment in full of the Loan upon the following conditions:

	
a.  

	
No Event of Default exists under the Loan, and

	
b.  

	
the Lender receives as a prepayment of the Loan, 100% of the principal of the allocated loan amount for such facility estimated as follows, along with all accrued interest related thereto:

	  	  	
Facility

	
Estimated Payoff Amount

	  	  	  	  	  
	  	  	
Arborwood

	
$6,000,000.00

	  
	  	  	  	  	  
	  	  	
Cielo Vista

	
$4,230,544.00

	  
	  	  	  	  	  
	  	  	
Amber Oaks

	
$8,415,000.00

	  
	  	  	  	  	  
	  	  	
Seabrook

	
$4,105,000.00

	  

Upon the release of any Related Facility pursuant to the terms of this Section 5.15, the Related Facility shall be released from the obligations of the Cross Collateralization Agreement and the applicable Borrower or Related Borrower shall concurrently be released from any further obligations under the Loan Documents.”

5. HCPI 2 Borrowers join in the execution of this Second Amendment and agree to continue to pay to Lender $666,667 in additional principal payments per month

  

2

  

6. (the “HCPI 2 Additional Payment”) until such time as all debt of the HCPI 2 Borrowers (the “HCPI 2 Loan”) is paid in full.  At the earlier of the date on which (i) the month immediately following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012, the Borrowers and the Related Borrowers shall pay to Lender $865,370 in additional principal payments per month (the “Additional Payment”) in excess of all other payments due by the Borrowers and the Related Borrowers to Lender pursuant to their applicable Loan Documents.  Lender shall apply the Additional Payment to the Loans in Lender’s sole discretion.  If, on February 1, 2012, the HCPI 2 Loan remains outstanding, the Borrowers and the Related Borrowers agree to pay to Lender $200,000 in additional principal payments per month in lieu of the Additional Payment until such time as the earlier of (i) the month following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012 (the “Reduced Additional Payment”).  Such Reduced Additional Payment shall be in excess of all other payments due by the Borrowers and the Related Borrowers to Lender pursuant to their applicable Loan Documents and applied to the Loans in Lender’s sole discretion.  Notwithstanding the foregoing, on the earlier of (i) the month immediately following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012, the Borrowers and the Related Borrowers shall begin making the Additional Payment to Lender, which shall be applied by Lender as provided herein.

7. The Borrowers shall pay a loan repositioning fee in the amount of one-quarter of one percent of the Loan ($65,500.00), and all costs and expenses incurred by the Lender related to this renewal and extension transaction, specifically including, without limitation, reasonable attorneys' fees, recording fees and the costs associated with a title update.

8. This Second Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute but one the same instrument.

9. The extension of the Maturity Date provided herein is subject to Lender’s receipt of a satisfactory appraisal of the Loyalton property.

Except as expressly amended hereby, all other terms and conditions of the Loan Agreement shall remain unchanged and shall continue in full force and effect.

 

The Borrower represents that (a) no Event of Default has occurred that is continuing on the date hereof;  and (b) the representations and warranties included in Article III of the Loan Agreement are as true and correct on the date hereof as when originally made, except as such representation or warranty expressly relates to an earlier date.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

  

3

  

IN WITNESS WHEREOF, Borrowers and Lender have caused this Second Amendment to be executed by their respective duly authorized representatives, as of the date set forth above.

 

CAPMARK BANK, a Utah industrial bank

By:  /s/ Laura Y. McDonald                                                    

Name: Laura Y. McDonald                                                     

Its:  SVP/Managing Director                                                    

  

4

  

 

BORROWERS:

EMERICHIP EVERETT LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

 a Washington corporation

 its Sole Member

By: /s/ Eric Mendelsohn

                  Eric Mendelsohn,

	
      

	
  Senior Vice President Corporate Development

 

EMERICHIP PHOENIX LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

 a Washington corporation

 its Sole Member

By: /s/ Eric Mendelsohn

                Eric Mendelsohn,

	
  

	
  Senior Vice President Corporate Development

EMERICHIP SAN ANTONIO AO LP

a Delaware limited partnership

By:             Emerichip Texas LLC,

 a Delaware limited liability company,

 its General Partner

 

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

          a Washington corporation

          its Sole Member

By: /s/ Erick Mendelsohn

                                Eric Mendelsohn,

  Senior Vice President Corporate Development

  

5

  

EMERICHIP WALLA WALLA LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

 a Washington corporation

 its Sole Member

By: /s/ Eric Mendelsohn

\                 Eric Mendelsohn,

	
  

	
  Senior Vice President Corporate Development

The Related Borrowers join in the execution of this Second Amendment to evidence their agreement to the terms contained herein:

RELATED BORROWERS:

FRETUS Investors El Paso LP, a

Delaware limited partnership

By:  Village Oaks Cielo Vista Investors

LLC, a Delaware limited liability company

Its:   General Partner

By: FRETUS Investors LLC, a

Washington limited liability

                                company

Its: Managing Member

By: Emeritus Corporation, a

                                                Washington corporation

Its: Administrative Member

                                                                                                                                                                         By:   /s/  Eric Mendelsohn          

                                                                                         Eric Mendelsohn 

                                         Its: Senior Vice President Corporate Development

  

6

  

EMERIPREZ LLC, a Delaware limited liability company

	
  

	
By:  Summerville Senior Living, Inc., a Delaware corporation

 

          Its:   Sole Member

 

By: /s/ Eric Mendelsohn                                                   

 

 Name: Eric Mendelsohn

	
  

	
Title:

	
Senior Vice President Corporate Development

PHNTUS LO JOLIET SCU LLC,

a Delaware limited liability company

     By Emeritus Corporation,

     a Washington corporation

     Its Sole Member

By:  /s/ Eric Mendelsohn

Name: _______________________

By:  /s/ Eric Mendelsohn                                           

Eric Mendelsohn

Its SVP Corporate Development

The HCPI 2 Borrowers join in the execution of this Second Amendment to evidence their agreement to the terms contained in Paragraph 5 contained herein:

HCPI 2BORROWER:

	
  

	
EMERICHIP STOCKTON LLC,

	
  

	
a Delaware limited liability company

	
  

	
By:

	
Emeritus Corporation,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

 

 

 

            By: /s/ Eric Mendelsohn

  Eric Mendelsohn,

  Senior Vice President

  Corporate Development

 

  

7

  

 

HCPI 2 BORROWER:

	
  

	
EMERICHIP DALLAS LP,

	
  

	
a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

	
  

	
By:

	
ESC G.P. II, Inc.,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:  /s/ Eric Mendelsohn                                                      

         Eric Mendelsohn

     Senior Vice President

     Corporate Development

  

8

  

HCPI 2 BORROWER:

EMERICHIP EL PASO LP

a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

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

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:  /s/ Eric Mendelsohn                                  

               Eric Mendelsohn

           Senior Vice President

           Corporate Development

HCPI 2 BORROWER:

EMERICHIP CAMBRIA AO LP

a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

	
  

	
By:

	
ESC G.P. II, Inc.,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:  /s/ Eric Mendelsohn                                                      

        Eric Mendelsohn

    Senior Vice President

    Corporate Development

  

9

  

SCHEDULE A

[List of Borrowers]

EMERICHIP EVERETT LLC

 

EMERICHIP PHOENIX LLC

 

EMERICHIP SAN ANTONIO AO LP

 

EMERICHIP WALLA WALLA LLC

 

  

10

  

EXHIBIT G

 

HCPI 2 Borrowers

 

	
1.  

	
Emerichip Stockton LLC

	
2.  

	
Emerichip Dallas LP

	
3.  

	
Emerichip El Paso LP

	
4.  

	
Emerichip Cambria AO LP

 

  

11

  

EXHIBIT H

 

Related Borrowers

 

 

Fretus Investors El Paso LP, a Delaware limited partnership

 

PHNTUS LO Juliet SCU LLC, a Delaware limited liability company

 

Emeriprez LLC, a Delaware limited liability company

 

 

  

12

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