Document:

ex10-1.htm

Exhibit 10.1

 

AGREEMENT AND RELEASE

 

This Agreement and Release (“Agreement”) is made by and between David L. Gaines (“Employee” or “you”) and Park Sterling Bank (the “Bank”). You and the Bank may be referred to collectively as the “Parties,” and each individually as a “Party.” 

 

WHEREAS, Employee and the Bank are parties to an Employment Agreement dated July 29, 2010 under which Employee is employed by Park Sterling Bank as its Chief Financial Officer;

 

WHEREAS, Employee has elected to end his employment with and separate from the Bank effective March 31, 2016 (“Separation Date”);

 

WHEREAS, the Bank wishes to recognize Employee’s years of loyal service to the Bank by providing certain benefits to Employee upon his separation that it was not otherwise required to provide; 

 

WHEREAS, Employee and the Bank enter into this Agreement to supplant and replace the Employment Agreement dated July 29, 2010 as well as any and all other agreements between the Parties,

 

NOW, THEREFORE, for good and valuable consideration, Employee and the Bank hereby agree as follows:

 

1.     Severance Benefits. In consideration for Employee's promises herein, the Bank will provide Employee with the following severance benefits:

 

	 	
a.
	
Severance pay equivalent to the base salary that Employee would have earned from the day following his Separation Date through and including August 15, 2016.

 

	 	
b.
	
An amount representing what Employee would have received for 2015 bonus compensation had he remained in the employ of the Bank, determined as follows: 

 

When the Chief Executive Officer’s 2015 bonus is determined, Bank shall compare the Chief Executive Officer’s 2015 bonus to his 2014 bonus to determine the baseline percentage. Employee’s 2014 bonus will then be multiplied by the baseline percentage to determine Employee’s 2015 bonus amount. For example, if the following numbers were accurate:

 

2014 CEO Bonus = $100,000

2015 CEO Bonus = $120,000

2014 Employee Bonus = $80,000

 

Then Employee’s 2015 bonus would be $80,000 x 120% = $96,000

 

 

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c.
	
The following unvested shares granted to Employee under Restricted Stock Awards shall immediately vest as of the date this Agreement is fully executed by the parties:

 

	 	
●
	
117,810 unvested shares granted on or about February 24, 2011 

	 	
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4,327 unvested shares granted on or about March 26, 2013 

	 	
●
	
5,000 unvested shares granted on or about May 22, 2014 

	 	
●
	
5,133 unvested shares granted on or about May 1, 2015 

 

All amounts payable to Employee under Section 1(a) and (b) shall be referred to collectively as the “Severance Pay.” The Severance Pay shall be paid in a single lump sum six months following Employee’s Separation Date. The Severance Pay shall be subject to withholdings and deductions as required or allowed by law. 

 

2.     Employee’s Release of Claims.      In consideration for the promises made by Bank in this Agreement, Employee, for himself, his heirs, executors, administrators, agents, beneficiaries, trustees, legal representatives and assigns, hereby releases, waives and forever discharges any and all claims, counterclaims, actions, causes of action, complaints, charges, grievances, demands, allegations, promises, agreements, covenants, or liabilities of any kind with or against the Bank, its health or welfare benefit plans, affiliates, subsidiaries, parent companies, fiduciaries, heirs, executors, administrators, beneficiaries, trustees, legal representatives, predecessors, successors or assigns, and their respective owners, officers, directors, trustees, employees, representatives and agents (collectively, the “Released Parties”), of whatever kind or nature, legal or equitable, whether based upon or derived from written or oral contract or from any local, state or federal statute or the common law of any jurisdiction, which he has or has ever had, whether known or unknown, including but not limited to, any and all claims under Title VII of the Civil Rights Act of 1964 as amended, the Americans with Disabilities Act (ADA), as amended, or the Employee Retirement Income Security Act of 1974 (ERISA), and all claims arising out of or in any way related to the relationship(s) between Employee and any of the Released Parties or the termination thereof to the fullest extent permitted by law. Employee acknowledges and agrees that upon payment of the amounts referenced in Section 1 of this Agreement, the Bank shall have fully and completely satisfied any and all obligations owed to him as a matter of law, contract, or otherwise.

 

3.     Bank’s Release of Claims. In consideration for the promises made by Employee in this Agreement, the Bank and any other person or entity (including, but not limited to, any parent, child or sibling company of Bank) claiming through the Bank hereby releases, waives and forever discharges any and all claims, counterclaims, actions, causes of action, complaints, charges, grievances, demands, allegations, promises, agreements, covenants, or liabilities of any kind with or against the Employee, of whatever kind or nature, legal or equitable, whether based upon or derived from written or oral contract or from any local, state or federal statute or the common law of any jurisdiction, which it has or has ever had, whether known or unknown, including but not limited to, any and all claims arising out of or in any way related to the relationship(s) between Employee and the Bank or the termination thereof to the fullest extent permitted by law. Provided however, that this release shall not release or otherwise affect or limit any claims, liabilities, actions or damages based upon, resulting from, or arising out of actions or conduct by Employee or any other person as an employee, officer or agent of Bank which were criminal or fraudulent. The Bank acknowledges and agrees that upon execution of this Agreement and performance of promises therein, the Employee shall have fully and completely satisfied any and all obligations owed to it as a matter of law, contract, or otherwise.

 

 

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4.     Maintaining Confidentiality of Information. Employee acknowledges that during his employment with the Bank, Employee had access to “Confidential Information” (as defined below) of the Bank. Employee expressly agrees that he will not, following termination of Employee’s employment with the Bank, use or disclose any Confidential Information (or allow to be revealed or disclosed any Confidential Information) to any person, firm, partnership, trust, corporation or other entity outside Company, except as may be required by law.

 

Definition of Confidential Information. As used in this Agreement, “Confidential Information” means data or information, whether constituting a trade secret or not, which Employee learned as a result of his employment relationship with the Bank and which is of value to the Bank and not generally known to persons or entities outside of the Bank, including but not limited to the following as it relates to the Bank or any customers or clients of the Bank: (i) historical sales information about customers, customers business procedures or processes, and any other information which Employee learned about Bank’s current and potential customers through Employee’s employment with the Bank; (ii) client, vendor, and distributor lists, data, and information; (iii) purchasing and materials information; (iv) training manuals, policies and procedures; (v) information about the financial aspects of Bank’s business including, without limitation, costs, profits, budgets, projections, forecasts, financial statements, fees and prices, pricing policies, quoting procedures, sales, financial projections, and other financial information; (vi) information about potential acquisition or merger targets; (vii) business opportunities for new or developing businesses for the Bank, and business and marketing plans, techniques, and strategies of the Bank (including plans for new products or services); (viii) private personnel information (such as social security numbers, compensation information and medical information); (ix) any information received by the Bank from third parties in confidence (or subject to non-disclosure or similar covenants); (x) the terms and conditions of negotiations or confidential contracts between the Bank and third parties; (xi) any documents, designs, files or other information marked “Confidential.” Employee expressly acknowledges and agrees that the information described in this Section 3 is the Bank’s unique and valuable confidential information and that unauthorized use of disclosure of such information would cause damage to the Bank.

 

In the event that the Employee is required by law to disclose any Confidential Information, the Employee will not make such disclosure unless (and then only to the extent that) the Employee has been advised by independent legal counsel (whose reasonable fees and expenses shall be paid by the Bank) that such disclosure is required by law and then only after prior written notice is given to the Bank when the Employee is aware that such disclosure has been requested and is required by law. This Section 4 shall survive for a period of two (2) years with respect to Confidential Information for so long as permitted by applicable law with respect to trade secrets.

 

 

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5.     Mutual Nondisparagement. For a period of two (2) years following the Separation Date, Employee shall not make any statements that could reasonably be perceived as disparaging of the Bank or any of the Bank’s affiliates, officers, directors, employees, advisors, agents, policies, procedures, practices, decision-making, conduct, professionalism or compliance with standards. For a period of two (2) years following the Separation Date, the Bank’s, officers and directors shall not make any statements that could reasonably be perceived as disparaging of the Employee. 

 

6.     Non-solicitation of Employees. For twelve (12) months after the cessation of employment with the Bank, Employee will not recruit, or attempt to recruit, or hire, directly or by assisting others, any other employee of the Bank with whom he had contact, or about whom he learned confidential information, during Employee’s last twenty-four (24) months of employment with the Bank. 

  

7.      Return of Bank Property. Employee has returned or promises to return to the Bank within one week of the Separation Date all Bank property, including (if applicable) all keys, access cards, as well as Employee’s Bank-issued phone, laptop, all related computer accessories, and any and all other property of Bank (including any Bank documents or documents in whatever form containing Confidential Information) that are or were in his possession as of the Separation Date. Employee covenants not to keep any copies of Bank documents, Confidential Information, keys, or copies of any other Bank property. 

 

8.     Payments Prohibited by Law. In the event that the Severance Pay, or any portion thereof, or any other payment due to Employee hereunder is deemed to be prohibited by any regulatory authority with the ability to regulate Bank, then the payment obligations of the Bank deemed unlawful shall be null, void, and of no effect. 

 

9.     Section 409A. The intent of the Parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code (“Section 409A”) to the extent subject thereto, and, accordingly, this Agreement shall be interpreted and administered to be in Section 409A to the maximum extent possible. Notwithstanding anything herein to the contrary: (i) if at the time of Employee’s termination of employment with the Bank, Employee is a “specified employee” as defined in Section 409A and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Bank will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Employee) until the date that is six (6) months following Employee’s termination of employment with the Bank (or the earliest date as is permitted under Section 409A); (ii) if any other payments of money or other benefits due to Employee hereunder could cause the application of an accelerated or additional tax under Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner acceptable to the Bank that does not cause such an accelerated or additional tax; (iii) to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, Employee shall not be considered to have terminated employment with the Bank for purposes of this Agreement and no payment shall be due to Employee under this Agreement until Employee would be considered to have incurred a “separation from service” from the Bank within the meaning of Section 409A; and (iv) each amount to be paid or benefit to be provided to Employee pursuant to this Agreement, which constitute deferred compensation subject to Section 409A, shall be construed as a separate identified payment for purposes of Section 409A. To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to Employee under this Agreement shall be paid to Employee on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to Employee) during any one year may not affect amounts reimbursable or provided in any subsequent year. The Bank shall consult with Employee in good faith regarding the implementation of the provisions of this Section 8. Notwithstanding anything in this Section 8 or in this Agreement, Employee shall be solely liable for determining the tax consequences of all or any payments made pursuant to this Agreement and solely responsible for paying all taxes deemed to be owed to any federal, state, local or local taxing authority, including but not limited to any accelerated or additional tax deemed to be due and owing under Section 409A. Employee acknowledges and agrees that he is not relying on any representations by the Bank or its agents or attorneys regarding the taxability of any payments which have been or shall be made hereunder. Employee agrees to indemnify and hold the Bank harmless against any claims based on or related to any additional or accelerated tax on any payment made hereunder and/or a failure to withhold from such payments FICA or federal, state or local income taxes which Employee is hereafter determined to owe.

 

 

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10.     No Interference With Certain Legal Rights. Nothing in this Agreement is intended to (a) prohibit Employee from communicating fully and freely with any government agency or government official acting in his/her official capacity, or (b) interfere in any way with Employee’s non-waivable legal rights, including his right to file a charge or participate in an investigation with the EEOC, a state or local agency comparable to the EEOC, the National Labor Relations Board, or any other government agency charged with enforcement of any applicable law. Moreover, should Employee choose to file such a charge or participate in such an investigation, no action Employee takes that is directly related to prosecuting or participating in any such charge shall be considered a breach of this Agreement. Employee acknowledges and understands, however, that he is agreeing to waive his right to recover monetary damages in any such charge or complaint, whether brought by Employee or by someone else on Employee’s behalf. 

 

 

11.     Controlling Law and Venue for Dispute Resolution. This Agreement shall be governed by and construed in accordance with the laws of North Carolina as they are applied to contracts made and to be wholly performed in that state, regardless of the choice of law rules or principles of any jurisdiction. Any dispute arising out of the terms of this Agreement or arising out of or related to Employee’s employment with Bank or termination thereof shall be resolved solely and exclusively in the state and/or federal courts serving Mecklenburg County, North Carolina. Employee expressly waives any objection to dispute resolution proceedings taking place in Mecklenburg County, North Carolina, including any objections based on lack of personal jurisdiction, improper venue, forum non conveniens or any similar objection. 

 

 

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12.     Construction.      The language of this Agreement shall be construed as a whole, according to its fair meaning and not strictly for or against either Party, regardless of which Party drafted the Agreement. 

 

13.     Executing this Agreement. If Employee wishes to accept this Agreement, he must sign it and return it to the Chief Executive Officer of Park Sterling Bank on or before 5:00 p.m. on February 5, 2016. If Employee fails to sign and return this Agreement by the deadline set forth in this Section 12, then the offer presented herein is withdrawn and shall be null, void, and of no effect.

 

 

14.     Cooperation in Legal Action. Employee agrees that in the event information or assistance is needed from Employee by the Bank to defend or establish any legal claims made by third parties, or to answer inquiries or defend against claims from any federal, state or local government agency with authority over the Bank, Employee will cooperate with the Bank in providing assistance and information. Employee’s assistance and cooperation shall include, but not be limited to, providing informal interviews with the Bank or its representatives (including but not limited to legal counsel); supplying affidavits; appearing at and providing testimony in depositions, hearings, arbitrations, administrative proceedings, and state and federal court trials. Both parties agree to act reasonably and in good faith in scheduling the dates, times and length of time during which Employee will provide assistance and cooperation in litigation. 

 

15.     No Admission; No Waiver.      Employee understands and agrees that Bank admits no liability with respect to any claim, demand or cause of action related to, or arising out of, their relationship or the termination thereof.

 

16.     Entire Agreement; Severability; Modification; Binding Effect.      This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof, and no agreements, representations, or statements of any Party not contained herein shall be binding on such Party. The provisions of this Agreement are deemed severable and the invalidity or unenforceability of any provision or part of this Agreement in any respect shall not affect the validity or enforceability of this Agreement in any other respect. No provision of this Agreement may be amended by the Parties except in a signed writing that references this Agreement and the provision that the Parties intend to amend. Only the Chief Executive Officer of Park Sterling Bank has the authority to amend this Agreement on behalf of the Bank. This Agreement shall be binding on, and inure to the benefit of, Employee and Bank and their respective heirs, successors and legal representatives.

 

 

 

 

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17.     Counterparts. This Agreement may be executed in multiple counterparts. In addition, electronically reproduced signatures (via photocopy, fax, scan or similar means) shall be valid in all respects as original signatures.

 

IN WITNESS WHEREOF, the Bank and Employee have executed this Agreement as follows: 

 

 

	
EMPLOYEE:
	
 
	
 
	
 
	
 

	 	 	 	 	 	 
	 	 	 	 	 	 
	
/s/ David L. Gaines
	
 
	
 
	
 
	
 

	 	
 
	
 
	
 
	
 
	
 

	Date:	
February 5, 2016 
	
 
	
 
	
 
	
 

	 	 	 	 	 	 
	 	 	 	 	 	 
	PARK STERLING BANK 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	          /s/ James C. Cherry	 	 	 	 
	 	 	 	 	 	 
	Name:	James C. Cherry	 	 	 	 
	 	 	 	 	 	 
	Title:	CEO 	 	 	 	 
	 	 	 	 	 	 
	Date:	February 5, 2016 	 	 	 	 

 

 

 

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			EXHIBIT 10.23.14

		

		
			ADDENDUM #3 TO MASTER LEASE AND SECURITY AGREEMENT
		

		
			This ADDENDUM #3 TO MASTER LEASE AND SECURITY AGREEMENT (this “Addendum”) is made and entered into as of December 16, 2015, 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 Facilities”) to the Leased Property under the Master Lease.    HCP Properties, LP, one of the entities comprising Lessor, leases the real property located at 4075 W. Dublin-Granville Rd., Dublin, Ohio  43017 as further described on Exhibit A attached hereto (the “Dublin Facility”) and the real property located at 378 Fries Mill Road, Sewell, New Jersey  08080 as further described on Exhibit A attached hereto (the “Washington Township Facility”) from HCR Dublin OH Property, LLC and HCR Washington Township NJ Property, LLC, respectively, pursuant to Lease Agreements of even date (respectively, the “Dublin Superior Lease” and the “Washington Township Superior 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 Facilities. The Master Lease is hereby amended to modify the “Pool 4 Facilities” to add the Additional Facilities thereto and Lessor hereby 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 Facilities, 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, and in the case of the Dublin Facility and the Washington Township Facility, subject to all of the terms, conditions and provisions of the Dublin Superior Lease and the Washington Township Superior Lease, respectively.    Notwithstanding that the Dublin Superior Lease and the Washington Township Superior Lease are not ground leases, Lessor and Lessee hereby agree that each shall be considered a “Superior Lease” as defined and used in the Master Lease.  The foregoing notwithstanding, to the extent that discrepancies exist between Lessee’s obligations under the Master Lease and the Dublin Superior Lease and/or the Washington Township Superior Lease, Lessee’s obligations under the Master Lease shall control. 
		

		
			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 Twinsburg OH Property, LLC, a Delaware limited liability company.    Lessor hereby confirms that the Dublin Superior Lease and the Washington Township Superior Lease are intended to be short term leases which will be terminated as soon as practicable after one or more of the entities comprising Lessor or an affiliate of Lessor purchases the fee interests, directly or indirectly, in the Dublin Facility and/or the Washington Township Facility, respectively.  Concurrently with the termination of the Dublin Superior Lease and/or the Washington Township Superior Lease, the parties agree to enter into an addendum or amendment to the Master Lease in order to add such fee owners of the Dublin Facility and/or the Washington Township Facility as “Lessor” under the Master Lease.
		

		
			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 of Dublin
		

		
			ManorCare Health Services, LLC d/b/a Heartland of Twinsburg 
		

		
			Portfolio One, LLC, d/b/a ManorCare Health Services-Washington  Township
		

		
			5.         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.
		

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

		
			7.         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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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

				

		
			 
		

		

		 

		

			 

		

		

			 

		

 

		

			 

		

	
					
						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

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

 
		

			
					
						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:     Senior Vice President

				

		
			 
		

		
			 
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
validity of that document
		

		
			 
		

		
			STATE OF CALIFORNIA
		

		
			COUNTY OF ORANGE
		

		
			On December 15, 2015 before me,  Jeanette Charmagne Mungcal, Notary Public, personally appeared Darren Kowalske who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.
		

		
			I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
		

		
			WITNESS my hand and official seal.
		

		
			 
		

		
			 
		

			
					
						 

				
	
					
						/s/ Jeanette Charmagne Mungcal

					
						Notary Public

				

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

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

					
						By:  /s/ Daniel Kight
Name:   Daniel Kight
Title:    Treasurer

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

 
		

		
			 
		

		
			 
		

		
			Addendum #3
		

		
			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:   VP, Treasurer

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

 
		

		
			EXHIBIT A

Legal Description of Additional Property
		

		
			Twinsburg Facility:
		

		
			ManorCare Health Services, LLC d/b/a Heartland of Twinsburg
8551 Darrow Road, Twinsburg, OH  44087
		

		
			Legally described as follows:
		

		
			Situated in the City of Twinsburg, County of Summit, State of Ohio, described as follows: Situated in the City of Twinsburg, County of Summit and State of Ohio:
		

		
			And known as being part of original Twinsburg Township Lot 15, Tract 3, and bounded and described as follows:
		

		
			Beginning at a drill hole found at the intersection of the center line of Darrow Road, 66 feet wide, with the centerline of Highland Road, 60 feet wide;
		

		
			Thence along the centerline of Darrow Road North 0° 23' 59" West, a distance of 499.28 feet to the northwesterly corner of Tract 1 of land conveyed to the General Electric Company Deed dated August 14, 1970 and recorded in Volume 5062, Page 306 of Summit County Records (S.C.R.);
		

		
			Thence along the northerly line of land so conveyed South 88° 10' 42" East, a distance of 33.02 feet to a capped 5/8" iron pin set at its intersection with the easterly line of Darrow Road, said point being The Principal Place of Beginning of the parcel herein described;
		

		
			Course 1:
		

		
			Thence continuing along the northerly line of land so conveyed South 88° 10' 42" East a distance
		

		
			of 475.88 feet to a capped 5/8" iron pin set;
		

		
			Course 2:
		

		
			Thence South 0° 23' 59" East, a distance of 439.56 feet to a capped 5/8" iron pin set;
		

		
			Course 3:
		

		
			Thence South 89° 36' 01" West a distance of 15.28 feet to a capped 5/8" iron pin set at a non-tangent point of curvature;
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

Course 4:
		

		
			Thence along the arc of a curve deflecting to the left a distance of 100.93 feet, said curve having
		

		
			a radius of 60.00 feet, a central angle of 96° 22' 46" and a chord which bears South 89° 36' 01" West, 89.44 feet to a capped 5/8" iron pin set;
		

		
			Course 5:
		

		
			Thence South 89° 36' 01" West, 329.80 feet to a capped 5/8" iron pin set at a point of curvature;
		

		
			Course 6:
		

		
			Thence northwesterly along the arc of a curve deflecting to the right a distance of 64.40 feet, said curve having a radius of 41.00 feet, a central angle of 90° 00' 00" and a chord which bears North 45° 23' 59" West, 57.98 feet to a capped 5/8" iron pin set at a point of tangency on the easterly line of Darrow Road;
		

		
			Course 7:
		

		
			Thence along the easterly line of Darrow Road North 0° 23' 59" West, a distance of 417.00 feet
		

		
			to The Principal Place of Beginning and containing 4.8624 acres of land according to a survey by Matthew C. Neff, Ohio Professional Surveyor No. 7315 of the M Neff Design Group.
		

		
			Note:
		

		
			Bearing is based on the Ohio State Plane Coordinate System, North Zone, 1983 Datum.
		

		
			Monuments described as 5/8" iron pins set are 5/8" diameter by 30" long rebar with cap stamped "M Neff 7315".
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

Dublin Facility
		

		
			 
		

		
			ManorCare Health Services, LLC d/b/a  Heartland of Dublin
		

		
			4075 W Dublin-Granville Rd., Dublin, OH  43017
		

		
			Legally described as follows:
		

		
			Situated in the City of Dublin, County of Franklin, State of Ohio, described as follows:
		

		
			Situated in the County of Franklin, in the State of Ohio, and in the City of Dublin; Being Lot Number One-A (1-A) of Shamrock Crossing South Amended Lot 1, as the same is numbered and delineated upon the recorded plat thereof, of record in Plat Book 114, Page 92 and 93, Recorder’s Office, Franklin County, Ohio.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

Washington Township Facility
		

		
			 
		

		
			Portfolio One, LLC, d/b/a ManorCare Health Services-Washington Township
		

		
			378 Fries Mill Road, Sewell, NJ  08080
		

		
			Legally described as follows:
		

		
			Real property in the Township of Washington, County of Gloucester, State of New Jersey, described as follows:
		

		
			ALL that certain lot, parcel or tract of land, situate and lying in the Township of Washington, County of Gloucester, State of New Jersey, and being more particularly described as follows:
		

		
			BEGINNING at a stone set in the middle of Fries Mill Road South 67 degrees East 42 links from a large pine tree (plumb) on the West side of said road and corner to lands owned by George and Michael Young, Jane Flexon and Jacob Williams; thence
		

		
			1. by land of said Flexon South 67 degrees East 11.06 chains to a stone in the Nicholson line; thence
		

		
			2. by land of Nicholson South 41 degrees 30 minutes West 2.95 chains to Nicholson corner; thence
		

		
			3. still by said land South 66 degrees East 1.66 chains to a corner in Nicholson line and corner of Henry Young’s land; thence
		

		
			4. with said Young’s line South 30 degrees West 11.38 chains to a leaning white oak; thence
		

		
			5. by land of George and Michael Young South 79 degrees 45 minutes West 6.36 chains to a stone or stake near the said Main Road; thence
		

		
			6. South 41 degrees 30 minutes West 1.30 chains to middle of said road; thence
		

		
			7. along middle of same North 09 degrees East 19.34 chains to the place of BEGINNING.
		

		
			EXCEPTING THEREOUT AND THEREFROM the following described premises:
		

		
			BEGINNING at an iron pipe and white oak stump the remains of a leaning white oak tree as called for in an old deed corner to land of Henry Young and said John G. Kuhn’s other land and extending thence
		

		
			1. along Kuhn’s other land South 82 degrees 19 minutes West 422.95 feet to a marble corner; thence
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

2. still along same South 44 degrees 04 minutes West 83.7 feet to a point in the center line of public road leading from Fries Mill to Blackwood; thence
		

		
			3. still along center line North 11 degrees 57 minutes East 225.05 feet to an iron pipe corner to Ernest Herbsleb’s other land; thence
		

		
			4. along his other land South 76 degrees 30 minutes East 442.97 feet (passing over stone 28.84 feet from the center of said Road) to the place of BEGINNING.
		

		
			BEING further described in accordance with a survey prepared by Taylor, Wiseman & Taylor dated April 8, 2005 as follows:  
		

		
			BEGINNING at a point formed by the intersection of the centerline of Fries Mill Road County Route 655 with the Southerly line of lands n/f of Township of Washington;
		

		
			1. thence along lands n/f of Township of Washington passing over a concrete monument found 41.99 feet from the beginning of this line South 74 degrees 02 minutes 17 seconds East 729.73 feet to a capped rebar found on the bank of a pond and in line of lands n/f of the Township of Washington;
		

		
			2. thence along lands of the Township of Washington South 33 degrees 29 minutes 45  seconds West 195.07 feet to a concrete monument found;
		

		
			3. thence still along lands of the Township of Washington South 73 degrees 56 minutes 17 seconds East 109.56 feet to a rebar set, a corner of lands n/f of Robert H. Smith;
		

		
			4. thence along lands of Smith South 24 degrees 19 minutes 45 seconds West 751.08 feet to a rebar set, a corner of lands of Smith in line of lands n/f of the Triumph Family Limited Partnership;
		

		
			5. thence along lands of the Triumph Family Limited Partnership, passing over a rebar set 35.00 feet from the end of this line North 86 degrees 22 minutes 54 seconds West 442.97 feet to a point in the centerline of Fries Mill Road;
		

		
			6. thence along the centerline of Fries Mill Road North 02 degrees 51 minutes 04 seconds East 1051.39 feet to the point of BEGINNING.
		

		
			NOTE: Being Lot(s) 8, Block(s) 86.15; Tax Map of the Township of Washington, County of Gloucester, State of New Jersey.

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