Document:

Exhibit

Exhibit 10.2

AMENDMENT TO PURCHASE AND SALE AGREEMENT
This AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “Amendment”) dated as of June 13, 2016, is entered into by and among SP6 SAN JOSE HOTEL OWNER, LLC, a Delaware limited liability company, having an address at 515 S. Flower Street, Suite 3100, Los Angeles, California  90071 (“Fee Seller”), and SP6 SAN JOSE HOTEL LESSEE, LLC, a Delaware limited liability company, having an address at 515 S. Flower Street, Suite 3100, Los Angeles, California  90071 (“TRS Seller”; TRS Seller and Fee Seller, each, a “Seller” and, collectively, “Seller”), and CWI 2 SAN JOSE HOTEL, LP, a Delaware limited partnership, having an address at 272 East Deerpath Road, Suite 320, Lake Forest, Illinois 60045 (“Purchaser”).
W I T N E S S E T H:
WHEREAS, Seller and Purchaser have entered into that certain Purchase and Sale Agreement, dated as of May 13, 2016, by and between Seller and Purchaser (as amended from time to time, the “Agreement”); all capitalized terms used but not defined herein shall have the meanings set forth in the Agreement; and
WHEREAS, Seller and Purchaser have agreed to amend the Agreement in accordance with the terms and conditions set forth herein. 
NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Inspection Period. The Inspection Period will continue until 5:00 p.m. Central Time on June 17, 2016 solely in order to allow Purchaser and Purchaser’s Representatives the opportunity to inspect the Hotel’s fire protection system and its components (collectively, the “Fire Protection System”) and approve of the condition of such Fire Protection System, which such approval may be granted or withheld in Purchaser’s sole and absolute discretion.  Except as provided in the preceding sentence, in the event that Purchaser has not delivered an Inspection Termination Notice to Seller pursuant to and in accordance with Section 2.03(e) of the Agreement on or before 5:00 p.m. Pacific Time on June 13, 2016, then Purchaser shall be deemed to have waived its right to terminate the Agreement in accordance with Section 2.03(e) of the Agreement.  If Purchaser fails to deliver to Seller an Inspection Termination Notice with respect to the Fire Protection System prior to the expiration of the Inspection Period (as extended in accordance with the first sentence of this section), then Purchaser shall be deemed to have waived its right to terminate the Agreement in accordance with Section 2.03(e) of the Agreement.

2.Closing Date. The Closing Date shall occur on July 13, 2016 unless extended in accordance with the terms of the Agreement.

3.Conduct of Hotel Business Pending Closing.  Section 4.01 of the Agreement is hereby amended by adding the following subsections (f) and (g):

“(f)    From and after the Effective Date and continuing until the earlier of completion or the Closing Date, Seller shall use commercially reasonable and diligent efforts to complete at its sole cost and expense the repair of the Hotel’s hot water return system and its components (collectively, the “Hot Water Return System”).  The scope of such repairs shall be as follows: (1) installing flow control valves, typically known as “circuit setter balancing valves”, on the discharge of each pump and set to control a maximum flow based on the maximum velocity, (2) opening the water softener bypass valve enough to increase the hardness of the water to 2-3 “Grains” to improve the efficacy of the phosphate injection system, and (3) monitoring the hardness of the water on a daily basis and adjusting the bypass to maintain the required hardness levels of water until the Closing Date (such scope of work, the “Hot Water Return Work”).  In addition, (x) to the extent that any testing of areas near the Hot Water Return System for water intrusion require removal (or other intrusive testing) or replacement, or (y) in the event that any of the foregoing inspections reveal mold, moisture issues or water damage, the Hot Water Return Work shall include the repair, replacement or restoration of such areas, including, without limitation, the remediation of such mold, moisture issues and water damage.  Seller shall use commercially reasonable efforts to complete and pay all costs of the Hot Water Return Work prior to the Closing Date.  In the event that Seller has not completed and paid for all costs of the Hot Water Return Work prior to the Closing Date, then at Closing Seller shall give Purchaser a credit against the Purchase Price in the aggregate amount of the estimated cost to complete the Hot Water Return Work (as such cost is reasonably agreed to by Seller and Purchaser).
(g)    From and after the Effective Date and continuing until the earlier of completion or the Closing Date, Seller shall use commercially reasonable and diligent efforts to complete at its sole cost and expense all of the repairs and renovations of the Hotel as further described in and pursuant to that certain Settlement Agreement with Shelby Gail Heifetz dated as of March 15, 2016 (collectively, the “Settlement Agreement Repairs”).  Seller shall use commercially reasonable efforts to complete and pay all costs of the Settlement Agreement Repairs prior to the Closing Date.  In the event that Seller has not completed and paid for all costs of the Settlement Agreement Repairs prior to the Closing Date, then at Closing Seller shall give Purchaser a credit against the Purchase Price in the aggregate amount of the estimated cost to complete the Settlement Agreement Repairs (as such cost is reasonably agreed to by Seller and Purchaser).”
4.Ratification.  Except as modified hereby, the Agreement shall remain in full force and effect, and as modified hereby, the Agreement is ratified and confirmed in all respects.  To the extent there is any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall govern.

5.Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one and the 

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same instrument.  An executed facsimile or .pdf of this Amendment may be relied upon as having, and shall be deemed to have, the same force and effect as an original.

[NO FURTHER TEXT ON THIS PAGE]

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IN WITNESS WHEREOF, Seller and Purchaser have executed this Amendment as of the date first above written.
	
		
	 
	SELLER:

	 
	 

	 
	SP6 SAN JOSE HOTEL OWNER, LLC, a Delaware limited liability company

	 
	 

	 
	 

	 
	By:    /s/ Ming J. Lee                           

	 
	Name: Ming J. Lee

	 
	Title: Vice President

	 
	 

	 
	By:    /s/ John M. Gibb                        

	 
	Name: John M. Gibb

	 
	Title: Vice President

	 
	

	 
	SP6 SAN JOSE HOTEL LESSEE, LLC, a Delaware limited liability company

	 
	 

	 
	 

	 
	By:    /s/ Ming J. Lee                            

	 
	Name: Ming J. Lee

	 
	Title: Vice President

	 
	 

	 
	By:    /s/ John M. Gibb                         

	 
	Name: John M. Gibb

	 
	Title: Vice President

	 
	

	 
	PURCHASER:

	 
	 

	 
	CWI 2 SAN JOSE HOTEL, LP, a Delaware limited partnership

	 
	 

	 
	 

	 
	By:    CWI 2 San Jose Hotel GP, LLC, a Delaware    limited liability company, its general partner

   By: /s/ Michael G. Medzigian                

	 
	Name:  Michael G. Medzigian

	 
	Title:     Chief Executive Officer and President

	
			
	 
	 
	 

[San Jose Marriott - Signature Page to Amendment]

JOINDER
The undersigned hereby joins in this Amendment solely for the purposes of being liable, not as a guarantor or surety, with respect to the obligations of Seller under Sections 4.01(f) and 4.01(g) of this Amendment (subject to the terms thereof), but only to the extent that (a) Closing occurs, and (b) Seller expressly has liability to Purchaser under this Amendment (or any documents executed in connection with the Closing) after Closing.  From and after the Closing, the obligations of the undersigned and Seller under this Amendment shall be joint and several. Notwithstanding the foregoing, to the extent that Seller’s liability is limited pursuant to any provision of this Amendment, the Agreement or the Closing Documents, the same limitations shall be applicable to the aggregate liability of Seller and the undersigned.  The obligations of the undersigned are not limited by (i) any amendment or modification to the Amendment or this Agreement, whether or not the undersigned has joined in any such amendment or modification, (ii) any bankruptcy or insolvency or similar proceeding after insolvency of Seller or (iii) any other surety defense.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of June ___, 2016.
	
		
	 
	 

	 
	 

	 
	CBRE STRATEGIC PARTNERS U.S. VALUE 6 REIT OPERATING, L.P., a Delaware limited liability company

	 
	 

	 
	By:   CBRE Strategic Partners U.S. Value 6 REIT    Operating GP, LLC, a Delaware limited liability    company

	 
	

   By:   /s/ Ming J. Lee                            

	 
	Name: Ming J. Lee

	 
	Title: Vice President

	 
	 

	 
	   By:  /s/ John M. Gibb                         

	 
	Name: John M. Gibb

	 
	Title: Vice President

	 
	

	
			
	 
	 
	 

[San Jose Marriott - Signature Page to Amendment]Exhibit 10.1

 

SECOND AMENDMENT TO MASTER REPURCHASE AGREEMENT

 

SECOND AMENDMENT TO MASTER REPURCHASE AGREEMENT, dated as of July 13, 2016 (this “Amendment”), by and among ACRC LENDER C LLC, a Delaware limited liability company (the “Seller”), ARES Commercial Real Estate Corporation, a Maryland corporation (the “Guarantor”) and CITIBANK, N.A., a national banking association (the “Buyer”).

 

R E C I T A L S:

 

WHEREAS, the Seller and Buyer entered into that certain Master Repurchase Agreement, dated as of December 8, 2014 (the “Original Agreement”), as amended by that certain First Amendment to Master Repurchase Agreement and Guaranty, dated as of July 13, 2016 (the “First Amendment”; together with the Original Agreement, as the same may be further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Repurchase Agreement”).

 

WHEREAS, Guarantor entered into that certain Amended and Restated Substitute Guaranty Agreement, dated as of May 6, 2014, in favor of Buyer, as amended by the First Amendment (as the same may be further amended, restated, supplemented or otherwise modified and in effect from time to time, the “Guaranty”).

 

WHEREAS, the parties wish to amend the Repurchase Agreement as more specifically set forth herein.

 

NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereto hereby covenant, agree, represent and warrant that the Repurchase Agreement are hereby amended as follows, effective as of the date hereof:

 

Section 1.              Amendment to Repurchase Agreement.

 

1.1          The following definition in Section 2 of the Repurchase Agreement is hereby deleted in its entirety and the following corresponding definition is substituted therefor in its proper alphabetical order:

 

“Facility Amount” shall mean $250,000,000 or whatever higher amount Buyer determines to fund pursuant to approved Transactions in its sole discretion; provided, however, any time the outstanding Purchase Price exceeds $250,000,000, all reductions in Purchase Price shall simultaneously reduce the then applicable Facility Amount until the Facility Amount equals $250,000,000.

 

Section 2.              Omnibus Amendment to Transaction Documents.

 

2.1          Any references to the Repurchase Agreement in the Transaction Documents shall hereinafter refer to the Repurchase Agreement as modified by this Amendment.

 

Second Amendment to MRA

 

 

Section 3.              Covenants, Representations and Warranties of Seller.

 

3.1          The Seller hereby represents and warrants that this Amendment has been duly executed and delivered by the Seller.  This Amendment is the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles.

 

3.2          The Seller hereby represents and warrants that, to the best of its knowledge, as of the date hereof, no Event of Default has occurred and is continuing, and no Event of Default will occur as a result of the execution, delivery and performance by the Seller of this Amendment.

 

Section 4.              Reaffirmation of Guaranty.

 

4.1          Guarantor has executed this Amendment for the purpose of acknowledging and agreeing that, notwithstanding the execution and delivery of this Amendment and the amendment of the Repurchase Agreement hereunder, all of Guarantor’s obligations under the Guaranty remain in full force and effect and the same are hereby irrevocably and unconditionally ratified and confirmed by Guarantor in all respects.

 

Section 5.              Effect Upon Transaction Documents.

 

5.1          The Seller hereby ratifies and confirms as of the date hereof that all of the terms, covenants and provisions of the Repurchase Agreement and the other Transaction Documents (except as expressly modified hereby) are and shall remain in full force and effect without change except as otherwise expressly and specifically modified by this Amendment.

 

5.2          The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Buyer under the Transaction Documents, or any other document, instrument or agreement executed and/or delivered in connection therewith.

 

5.3          The Seller acknowledges that nothing contained herein shall be construed to relieve the Seller from its obligations under any Transaction Document except as otherwise expressly and specifically modified by this Amendment.

 

Section 6.              No Oral Modification.   This Amendment may not be modified, amended, waived, changed or terminated orally, but only by an agreement in writing signed by the party against whom the enforcement of the modification, amendment, waiver, change or termination is sought.

 

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

 

Section 8.              Counterparts.  This Amendment may be executed in any number of duplicate originals and each such duplicate original shall be deemed to constitute but one and the

 

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same instrument.  Signatures delivered by email (in PDF format) shall be considered binding with the same force and effect as original signatures.

 

Section 9.              Invalidity.  If any term, covenant or condition of this Amendment shall be held to be invalid, illegal or unenforceable in any respect, this Amendment shall be construed without such provision.

 

Section 10.            Governing Law.  This Amendment shall be governed in accordance with the terms and provisions of Section 20 of the Repurchase Agreement.

 

Section 11.            No Novation.  This Amendment does not, and shall not be construed to, constitute the creation of a new indebtedness or the satisfaction, discharge or extinguishment of the debt secured by the Transaction Documents, nor does it in any way affect or impair the lien of the Transaction Documents.  No action undertaken pursuant to this Amendment shall constitute a waiver or a novation of the Buyer’s rights under the Transaction Documents.

 

Section 12.            Costs.  The Seller hereby acknowledges and agrees that it shall be responsible for the payment of any reasonable out-of-pocket costs, fees and expenses of the Buyer incurred in connection with the preparation, negotiation, execution or delivery of this Amendment (including, without limitation, the reasonable fees and disbursements of counsel to the Buyer).

 

[Signatures appear on following pages]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized representatives, all as of the day and year first above written.

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
ACRC LENDER C LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Don Haisch
    
	
 
    	
 
    	
Name: Don Haisch
    
	
 
    	
 
    	
Title: Chief Accounting   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GUARANTOR:
    
	
 
    	
 
    
	
 
    	
ARES COMMERCIAL REAL ESTATE   CORPORATION, a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Don Haisch
    
	
 
    	
 
    	
Name: Don Haisch
    
	
 
    	
 
    	
Title: Chief Accounting   Officer
    

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

 

	
 
    	
BUYER:
    
	
 
    	
 
    
	
 
    	
CITIBANK,   N.A.,
    
	
 
    	
a national banking   association
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard B.   Schlenger
    
	
 
    	
 
    	
Name: Richard B.   Schlenger
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

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