Document:

exv10w14

  Exhibit 10.14

FIRST AMENDMENT TO GUARANTY OF PAYMENT

(Loan A)

     THIS
FIRST AMENDMENT TO GUARANTY OF PAYMENT (Loan A) (this
“Agreement”) is made as of September 2008, by and between SUNRISE SENIOR
LIVING, INC., a corporation organized under the laws of the State of Delaware (“Guarantor”) and
CHEVY CHASE BANK, F.S.B., a federal savings bank, its successors and assigns, as Agent (“Agent”)
for Lenders (individually a “Lender” and collectively, “Lenders”) party to the Loan Agreement (as
hereinafter defined).

RECITALS

     A. Sunrise Connecticut Avenue Assisted Living, L.L.C., a limited liability company organized
under the laws of the Commonwealth of Virginia (“Borrower”), obtained a loan from Lenders in the
aggregate principal amount of Thirty Million and No/Dollars ($30,000,000.00) (the “Loan A”), which
is one of two simultaneous loans made by Chevy Chase Bank, F.S.B. to Borrower.

     B. Loan A was made pursuant to the provisions of a certain Loan and Security Agreement (Loan
A) dated August 28, 2007, by and among Borrower, Agent and Lenders, as amended by that certain
First Amendment to Loan Agreement (Loan A) dated April 15, 2008 (as further amended, modified,
restated, substituted, extended and renewed at any time and from time to time, collectively, the
“Loan Agreement”).

     C. Loan A is evidenced by, and repaid with interest in accordance with the provisions of one
or more Deed of Trust Note As dated August 28, 2007, from Borrower payable to Lenders in the
aggregate principal amount of Thirty Million and No/Dollars ($30,000,000.00) (as amended,
modified, restated, substituted, extended and renewed at anytime and from time to time,
collectively, the “Note”).

     D. Guarantor executed a Guaranty of Payment (Loan A) dated August 28, 2007 (the “Guaranty”)
pursuant to which Guarantor guaranteed Borrower’s obligations under the Loan Agreement and the
Note.

     E. Borrower and Guarantor have requested and Lenders have agreed to (i) waive any defaults
which have occurred under those certain financial covenants described in Section 9(c) of
the Guaranty for the fiscal year ending December 31, 2007 and the fiscal quarters ending March
31, 2008 and June 30, 2008 and any defaults which may occur during the fiscal quarter ending
September 30, 2008; and (ii) make such other changes to the Guaranty as are more particularly set
forth herein.

     F. As a condition precedent to the agreements referenced above, Agent has required that this
Agreement be executed and delivered to Agent on behalf of Lenders.

 

 

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, receipt of which is hereby acknowledged, Guarantor, Agent and Lenders agree as
follows:

     1. Guarantor, Agent and Lenders agree that the Recitals above are a part of this Agreement.
Unless otherwise expressly defined in this Agreement, terms defined in the Loan Agreement shall
have the same meaning under this Agreement.

     2. The Guaranty is hereby amended as follows:

          (a) The following defined terms are hereby added to the end of Section 9(c)
(Covenants):

     “Cash Equivalents” means any investment security issued by the United States
Government and backed by the full faith and credit of the United States Government.

     “Required Liquidity” has the meaning set forth in Section 9(c)(iv).

          (b) A
new subsection (iv) is hereby added to Section 9(c) (Covenants)
as follows:

     (d) Required Liquidity. Guarantor will maintain at all
times, tested as of the end of each calendar month until Guarantor has
complied with the Updated Reporting Requirements (as defined in the Sunrise
Senior Financing Agreement) and Guarantor is not otherwise in default under
the Sunrise Senior Financing Agreement, liquidity of not less than
$50,000,000 composed of availability under the Sunrise Senior Financing
Agreement plus up to not more than $50,000,000 in unrestricted cash and
unrestricted Cash Equivalents (the “Required Liquidity”). Guarantor shall
provide a certificate of compliance with the Required Liquidity on or before
fifteen (15) days after the end of each such calendar month. The face
amounts of letters of credit outstanding under the Sunrise Senior Financing
Agreement and the outstanding amounts of the loans made under the Sunrise
Senior Financing Agreement will be deducted from the maximum availability
under the Sunrise Senior Financing Agreement for purposes of determining
compliance with “Required Liquidity.” During
such time as Guarantor is required to comply with the Required
Liquidity covenant, Guarantor must also provide evidence of compliance with
the Required Liquidity covenant contemporaneously when provided to the
Sunrise Bank Group pursuant to the Sunrise Senior Financing Agreement.

     3. Guarantor hereby acknowledges and agrees that, pursuant to the terms of Section 9(c) of the
Guaranty, Guarantor is required to comply with certain financial covenants more particularly
described therein (the “Financial Covenants”). Guarantor, Agent and Lenders

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hereby agree to waive compliance with the Financial Covenants for the fiscal year ending December
31, 2007 and the fiscal quarters ending March 31, 2008 and June 30, 2008. Additionally, Guarantor
hereby acknowledges and agrees that Guarantor is not expected to be in compliance with the
leverage ratio and the fixed charge coverage ratio for the fiscal quarter ending September 30,
2008. Guarantor, Agent and Lenders hereby agree to waive compliance with subsections 9(c)(ii)
(Leverage Ratio) and 9(c)(iii) (Fixed Charge Coverage Ratio) for the fiscal quarter ending
September 30, 2008.

     4. Guarantor hereby issues, ratifies and confirms the representations, warranties and
covenants contained in the Guaranty, as amended hereby. Guarantor agrees that this Agreement is not
intended to and shall not cause a novation with respect to any or all of the obligations of
Guarantor under the Guaranty. Except as expressly modified herein, the terms, provisions and
covenants of the Guaranty are in all other respects hereby ratified and confirmed and remain in
full force and effect.

     5. Guarantor shall pay to Agent at the time this Agreement is executed and delivered (i) a
waiver fee in the amount of $3,000.00 for the pro rata benefit of Lenders, and (ii) all fees,
costs, charges, taxes and other expenses incurred by Agent and its counsel in connection with this
Agreement.

     6. This Agreement may be executed in any number of duplicate originals or counterparts, each
of such duplicate originals or counterparts shall be deemed to be an original and all taken
together shall constitute but one and the same instrument. Guarantor agrees that Agent and Lenders
may rely on a telecopy of any signature of Guarantor. Agent and Lenders agree that Guarantor may
rely on a telecopy of this Agreement executed by Agent and Lenders.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

3

 

     IN WITNESS WHEREOF, Guarantor and Agent have executed this Agreement under seal as of the date
and year first written above.

	 	 	 	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS OR ATTEST:	 	SUNRISE SENIOR LIVING, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Sunrise Senior Living, Inc.,
	 
	 	 	 	 	 	 	 	 
	/s/ 	 	 	 	By:
	 	/s/
Richard J. Nadeau
	 	(SEAL
	 
	 	 	 	 	 	Name: Richard J. Nadeau	 	 
	 	 	 	 	Title:   Chief Financial Officer	 	 
	 
	 	AGENT:	 	 	 	 
	WITNESS:	 	CHEVY CHASE BANK, F.S.B., as Agent
	 
	 	 	 	 	 	 	 	 
	/s/

	 	By:
	 	/s/	 	 	 	(SEAL)
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

AGREEMENT OF LENDERS

     The undersigned are each a “Lender” under the Loan Agreement and pursuant to Section 9(c) of
the Guaranty each hereby consent to the waivers of the financial covenants as set forth in the
Agreement.

     WITNESS signature and seal of the undersigned as of the date of the Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	LENDERS:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	CHEVY CHASE BANK, F.S.B., as Lender
	 
	 	 	 	 	 	 	 	 
	/s/ 

	 	By:
	 	/s/
 

Name:
	 	(SEAL)	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	MB FINANCIAL BANK, N.A., as Lender
	 
	 	 	 	 	 	 	 	 
	/s/
 

	 	By:
	 	/s/ Jack H. Sharp
 

Name: Jack H. Sharp
	 	(SEAL) 	 	 
	 

	 	 	 	Title: Senior Vice Presidentexv10w15

Exhibit 10.15

FIRST AMENDMENT TO LOAN AGREEMENT

(Loan B)

     THIS FIRST AMENDMENT TO LOAN AGREEMENT (this “Agreement”) is made as
of April 15, 2008, by and between SUNRISE CONNECTICUT AVENUE ASSISTED LIVING
L.L.C., a limited liability company organized and existing under the laws of the Commonwealth of
Virginia (the “Borrower”) and CHEVY CHASE BANK, F.S.B. a federally chartered savings bank
(“Lender”).

RECITALS

     A. Borrower obtained a loan from the Lender in the maximum principal amount of Ten Million
and No/Dollars ($10,000,000.00) (“Loan B”) which was advanced pursuant to the provisions of a
certain Loan Agreement dated August 28, 2007 by and between the Borrower and the Lender (the same,
as amended by this Agreement and as amended, modified, restated, substituted, extended and renewed
at any time and from time to time, the “Loan Agreement”).

     B. Loan B is evidenced by, and repaid with interest in accordance with the provisions of a
Deed of Trust Note B dated August 28, 2007 from the Borrower payable to Lender in the principal
amount of Ten Million and No/Dollars ($10,000,000.00) (as amended, modified, restated,
substituted, extended and renewed at anytime and from time to time, the
“Note”).

     C. Loan B is guaranteed by Sunrise Senior Living, Inc. a Delaware corporation (“Guarantor”),
pursuant to the terms of that certain Guaranty of Payment dated August 28, 2007 (the “Guaranty”).

     D. The Borrower has requested and the Lender has agreed to (i) waive the delivery of financial
statements for the fiscal quarter ending September 30, 2007, (ii) extend the delivery deadline for
financial statements for the fiscal quarter ending March 31, 2008 and (iii) make such other changes
as more particularly set forth herein.

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, receipt of which is hereby acknowledged, Borrower and Lender agree as follows:

     1. Borrower and Lender agree that the Recitals above are a part of this Agreement. Unless
otherwise expressly defined in this Agreement, terms defined in the Loan Agreement shall have the
same meaning under this Agreement.

     2. Borrower hereby acknowledges and agrees that pursuant to the terms of Section 7.1
(Financial Statements) of the Loan Agreement, Borrower is required to deliver to Lender, draft,
internally-prepared quarterly financial statements of Guarantor within ninety (90) days of

 

 

the close of each fiscal quarter. Borrower and Lender hereby agree (i) the requirement to deliver
the quarterly financial statement of Guarantor for the fiscal quarter ending September 30, 2007 is
waived and (ii) the quarterly financial statement of Guarantor for the fiscal quarter ending March
31, 2008 shall be due no later than August 20, 2008 rather than by June 30, 2008.

     3. Subsection (d) of Section 7.1 (Financial Statements) of the Loan Agreement is hereby
amended and restated in its entirety as follows:

     “(d) The annual financial statement for the Guarantor for the fiscal year
ending December 31, 2006, as such financial statement was submitted to the
Securities and Exchange Commission, no later than April 15, 2008 and as soon as
available, but not later than July 31, 2008, restated audited statements for any
periods through fiscal year 2007.”

     4. Borrower hereby issues, ratifies and confirms the representations, warranties and covenants
contained in the Loan Agreement, as amended hereby. Borrower agrees that this Agreement is not
intended to and shall not cause a novation with respect to any or all of the obligations of
Borrower under the Loan Agreement. Except as expressly modified herein, the terms, provisions and
covenants of the Loan Agreement are in all other respects hereby ratified and confirmed and remain
in full force and effect.

     5. This Agreement may be executed in any number of duplicate originals or counterparts, each
of such duplicate originals or counterparts shall be deemed to be an original and all taken
together shall constitute but one and the same instrument. Borrower agrees that Lender may rely on
a telecopy of any signature of Borrower. Lender agrees that Borrower may rely on a telecopy of this
Agreement executed by Lender.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

2

 

     IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement under seal as of the date
and year first written above.

	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS OR ATTEST:	 	SUNRISE CONNECTICUT AVENUE ASSISTED LIVING, L.L.C.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Sunrise Senior Living Investments, Inc., its
sole Member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ James S. Pope
 

Name: James S. Pope
	 	(SEAL) 
	 

	 	 	 	 	 	Title: Vice President	 	 

COMMONWEALTH OF VIRGINIA, COUNTY OF FAIRFAX, TO WIT:

     On
April 15, 2008, before me, Alma M. Tomlin, a Notary Public in and for the Commonwealth
shown above, appeared James S. Pope, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose signature is subscribed to the within instrument, and
acknowledged to me that he executed the same in his authorized capacity as Vice President of
Sunrise Senior Living Investments, Inc., sole Member of Sunrise Connecticut Avenue Assisted Living,
L.L.C., and that by his signature on the instrument the entity upon behalf of which he acted,
executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 

	 	/s/ Alma M. Tomlin
 

Notary Public
	 	 

My Commission Expires:                     

My Notarial Registration Number is:                     

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	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	WITNESS:	 	CHEVY CHASE BANK, F.S.B., as Agent and
Lender	 	 
	 
	 	 	 	 	 	 
	 
 

	 	By:
	 	/s/
 

	 	(SEAL) 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

COMMONWEALTH/STATE
OF       , COUNTY/CITY
OF       , TO WIT:

     On April    , 2008, before me,                     , a Notary Public in and for
the Commonwealth shown above, appeared                     , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose signature is subscribed
to the within instrument, and acknowledged to me that he/she executed the same in
his authorized capacity as               of Chevy Chase Bank, F.S.B, and that by his/her
signature on the instrument the entity upon behalf of which he/she
acted, executed the instrument.

     WITNESS my hand and official seal.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

My Commission Expires:                     

My Notarial Registration Number is:                     

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