Document:

Exhibit 10.37

 

Exhibit
10.37

	 	 	 	 	 

FIRST AMENDMENT TO THE

ASSET PURCHASE AGREEMENT|

BY AND AMONG

VILLA
HOMES WEST, INC., D/B/A WOODSIDEMANAGEMENT GROUP,

RIDGEWOOD MANOR, LLC,

PARKVIEW REAL ESTATE, LTD.,

WOODSIDE PROPERTIES I, LTD., AND

WOODSIDE PROPERTIES II, LTD.,

(COLLECTIVELY AS “SELLER”)

AND

OP MAUMEE, INC.,

RE MAUMEE, INC.,

OP CAREY, INC.,

RE CAREY, INC.,

OP1 FREMONT, INC.,

RE1 FREMONT, INC.,

OP2 FREMONT, INC.,

RE2 FREMONT, INC.,

OP KENTON, INC.

(COLLECTIVELY AS “BUYER”)

Dated as of September _____, 2002

 

 

FIRST AMENDMENT TO THE

ASSET PURCHASE AGREEMENT

THIS FIRST AMENDMENT TO THE ASSET PURCHASE AGREEMENT (“First Amendment”) is made and entered into
as of September ___, 2002, by and among VILLA HOMES WEST, INC., D/B/A WOODSIDE MANAGEMENT GROUP,
RIDGEWOOD MANOR, LLC, PARKVIEW REAL ESTATE, LTD., WOODSIDE PROPERTIES I, LTD., AND WOODSIDE
PROPERTIES II, LTD. (collectively as “Seller”) and OP MAUMEE, INC., RE MAUMEE, INC., OP CAREY,
INC., RE CAREY, INC., OP1 FREMONT, INC., RE1 FREMONT, INC., OP2 FREMONT, INC., RE2 FREMONT, INC.,
OP KENTON, INC. (collectively as “Buyer”).

WITNESSETH:

     WHEREAS, Seller and Buyer entered into a certain Asset Purchase Agreement as of August 30,
2002, whereby Buyer agreed to purchase from Seller certain nursing homes owned by Seller and
located throughout Ohio, as specifically set forth in said Asset Purchase Agreement (the
“Agreement”);

     WHEREAS, a set of facts has arisen that has caused the parties to desire to supplement and
amend certain terms of the Agreement, as set forth in this First Amendment.

     NOW, THEREFORE, for and in consideration of the premises, and the agreements, covenants,
representations and warranties hereinafter set forth, and other good and valuable consideration,
the receipt and adequacy of all of which are forever acknowledged and confessed, the parties
hereto, intending to be legally bound hereby, agree as follows:

     1. Article 2, Financial Arrangements, shall be amended, at Section 2.1.1(a), to read
as follows:

	 	 	 	2.1.l(a) $500,000 in the form of a Note, payable to Villa Homes West, Inc., by
Buyer, to accrue interest at 7% per annum, with interest payments only for a
period of five (5) years (“Note”), as said Note may be adjusted pursuant to the
provisions of Section 2.3 herein.

	 	 	 	The remainder of Section 2.1.1(a) shall remain unchanged.

     2. Article 2, Financial Arrangements, Section 2.3, Purchase Price Adjustments,
shall be amended by adding the following language:

	 	 	 	“The cost associated with compliance with or the conditions to be met with respect
to any variance from the roles and regulations referred to in Sections 8.19 and 9.8
hereof shall be borne by Buyer and shall be treated as an adjustment to the Purchase
Price which shall reduce the principal amount of the Note. On and after Closing,
Buyer shall be responsible for compliance with Rules 3701-17-01 to 3701-17-26 of the
Ohio Administrative Code and any costs or expenses associated

 

 

	 	 	 	with such compliance or the conditions to any variance therefrom and,
notwithstanding anything contained therein to the contrary, Seller shall not be
liable for any indemnity hereunder with respect to such compliance or the conditions
to any variance therefrom or any costs or expenses associated therewith.

     3. Article 3, Closing, is hereby amended at Section 3.1 to provide that Closing shall
occur, as stated, “on or before November 27, 2002. In the event that Closing does not occur on or
before November 27, 2002, the parties agree to an automatic extension of the Closing until December
31, 2002, or at such later or earlier date and/or such other location as the parties hereby may
mutually agree in writing or as otherwise provided in this Agreement (the “Closing Date”). The
Closing shall be effective as of 12:01 a.m. then prevailing eastern time on the day following the
Closing Date (the “Effective Time”).”

     4. Article 8, Conditions Precedent to Obligations of Buyer, is hereby amended to add
the following provision:

	 	8.19	 	Minimum Room Size Requirement. Seller shall comply
with Rules 3701-17-01 to 3701-17-26 of the Ohio Administrative Code. To the
extent Seller does not comply with Rule 3701-17-23 of the Ohio Administrative
Code, Seller shall have submitted a written compliance plan to the appropriate
District Office, Bureau of Long Term Care Quality, on or before October 20,
2002, outlining the steps to be taken to bring the nursing home into compliance
by October 20, 2005. Seller shall submit the written compliance plan to Buyer
for Buyer’s review and approval before submitting such plan to the appropriate
District Office, Bureau of Long Term Care Quality, and Seller and Buyer shall
have reached agreement on the costs and expenses associated with such plan.
Such compliance plan/variance shall not be a breach by Seller of Section 4.9
herein.

     5. A new Section 9 to the Conditions Precedent to Obligations of Seller, shall read as
follows:

	 	9.8	 	Minimum Room Size Requirement. Seller shall comply
with Rules 3701-17-01 to 3701-17-26 of the Ohio Administrative Code. To the
extent Seller does not comply with Rule 3701-17-23 of the Ohio Administrative
Code, Seller shall have submitted a written compliance plan to the appropriate
District Office, Bureau of Long Term Care Quality, on or before October 20,
2002, outlining the steps to be taken to bring the nursing home into compliance
by October 20, 2005. Seller shall submit the written compliance plan to Buyer
for Buyer’s review and approval before submitting such plan to the appropriate
District Office, Bureau of Long Term Care Quality, and Seller and Buyer shall
have reached agreement on the costs and expenses associated with such plan.

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	 	 	 	Such compliance plan/variance shall not be a breach by Seller of Section
4.9 herein.

     6. Article 11, at Section 11.1, shall be amended at subsection (v), by substituting the date
December 31, 2002, instead of November 30, 2002.

     7. In all other respects, the parties hereby ratify and confirm the remaining terms of the
Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed in
multiple originals by their duty authorized officers, all as of the date and year first above
written. This First Amendment may be executed and delivered in multiple counterparts and each such
counterpart shall be deemed an original, but all such counterparts shall together constitute one
and the same First Amendment.

	 	 	 	 	 
	BUYER: 	OP MAUMEE, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE MAUMEE, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP CAREY, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE CAREY, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP1 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 

-3-

 

	 	 	 	 	 

	 	 	 	 	 
	 	RE1 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP2 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE2 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP KENTON, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	SELLER:                          	VILLA HOMES WEST, INC., D/B/A

WOODSIDEMANAGEMENT GROUP

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	RIDGEWOOD MANOR, LLC

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 
	 

	 	 	 	 	 
	 	PARKVIEW REAL ESTATE, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 

-4-

 

	 	 	 	 	 

	 	 	 	 	 
	 	WOODSIDE PROPERTIES I, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 
	 

	 	 	 	 	 
	 	WOODSIDE PROPERTIES II, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 

-5-Exhibit 10.38

 

Exhibit
10.38

	 	 	 	 	 

SECOND AMENDMENT TO THE

ASSET PURCHASE AGREEMENT

BY AND AMONG

VILLA HOMES WEST, INC., D/B/A WOODSIDEMANAGEMENT GROUP,

RIDGEWOOD MANOR, LLC,

PARKVIEW REAL ESTATE, LTD.,

WOODSIDE PROPERTIES I, LTD., AND

WOODSIDE PROPERTIES H, LTD.,

(COLLECTIVELY AS “SELLER”)

AND

OP MAUMEE, INC.,

RE MAUMEE, INC.,

OP CAREY, INC.,

RE CAREY, INC.,

OP1 FREMONT, INC.,

RE1 FREMONT, INC.,

OP2 FREMONT, INC.,

RE2 FREMONT, INC.,

OP KENTON, INC.

(COLLECTIVELY AS “BUYER”)

Dated as of October 18, 2002

 

 

SECOND AMENDMENT TO THE

ASSET PURCHASE AGREEMENT

THIS SECOND AMENDMENT TO THE ASSET PURCHASE AGREEMENT (“Second Amendment”) is made and entered into
as of October 18, 2002, by and among VILLA HOMES WEST, INC., D/B/A WOODSIDE MANAGEMENT GROUP,
RIDGEWOOD MANOR, LLC, PARKVIEW REAL ESTATE, LTD., WOODSIDE PROPERTIES I, LTD., AND WOODSIDE
PROPERTIES II, LTD. (collectively as “Seller”) and OP MAUMEE, INC., RE MAUMEE, INC., OP CAREY,
INC., RE CAREY, INC., OP1 FREMONT, INC., RE1 FREMONT, INC., OP2 FREMONT, INC., RE2 FREMONT, INC.,
OP KENTON, INC. (collectively as “Buyer”).

WITNESSETH:

     WHEREAS, Seller and Buyer entered into a certain Asset Purchase Agreement as of August 30,
2002, whereby Buyer agreed to purchase from Seller certain nursing homes owned by Seller and
located throughout Ohio, as specifically set forth in said Asset Purchase Agreement (the
“Agreement”);

     WHEREAS, a set of facts had arisen that caused the parties to supplement and amend certain
terms of the Agreement as of September 30, 2002, as set forth in a First Amendment to the Asset
Purchase Agreement (“First Amendment”); and

     WHEREAS, a set of facts has arisen that has caused the parties to desire to supplement and
further amend certain terms of the Agreement, as set forth in this Second Amendment.

     NOW, THEREFORE, for and in consideration of the premises, and the agreements, covenants,
representations and warranties hereinafter set forth, and other good and valuable consideration,
the receipt and adequacy of all of which are forever acknowledged and confessed, the parties
hereto, intending to be legally bound hereby, agree as follows:

     1. Article 2, Financial Arrangements, Section 2.3, Purchase Price Adjustments,
shall be amended by adding the following language, which is in addition to the language added by
the First Amendment:

	 	 	 	“As used in this paragraph, the “cost associated with compliance” may involve the
loss of bed capacity at one of the Facilities. In the event that occurs, the
parties agree that the sum of $50,000 per resident bed lost in a Facility due to the
compliance requirements of Rules 3701-17-01 to 3701-17-26 of the Ohio Administrative
Code shall be deducted from the amount due on the Note.”

     2. In all other respects, the parties hereby ratify and confirm the remaining term of the
Agreement, as amended.

     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed in
multiple originals by their duly authorized officers, all as of the date and year first

 

 

above written. This Second Amendment may be executed and delivered in multiple counterparts
and each such counterpart shall be deemed an original, but all such counterparts shall together
constitute one and the same Second Amendment.

	 	 	 	 	 
	BUYER:                           	OP MAUMEE, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE MAUMEE, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP CAREY, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE CAREY, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP1 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE1 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 

-2-

 

	 	 	 	 	 

	 	 	 	 	 
	 	OP2 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	RE2 FREMONT, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OP KENTON, INC.

 	 
	 	By:  	/s/ Lawrence R. Deering
 	 
	 	Name:  	Lawrence R. Deering 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	SELLER:                         	VILLA HOMES WEST, INC., D/B/A

WOODSIDEMANAGEMENT GROUP

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	RIDGEWOOD MANOR, LLC

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 
	 

	 	 	 	 	 
	 	PARKVIEW REAL ESTATE, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 
	 

	 	 	 	 	 
	 	WOODSIDE PROPERTIES I, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 

-3-

 

	 	 	 	 	 

	 	 	 	 	 
	 	WOODSIDE PROPERTIES II, LTD.

 	 
	 	By:  	/s/ Patrick Kriner
 	 
	 	Name:  	Patrick Kriner 	 
	 	Title:  	Member 	 

-4-

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