Document:

Exhibit 10.27

 

Exhibit 10.27

FIRST AMENDMENT TO THE

ASSET PURCHASE AGREEMENT

BY AND AMONG

DIAKON LUTHERAN SOCIAL MINISTRIES, ET AL.

(“SELLER”)

AND

RE SELINSGROVE, LLC, ET AL.

(“BUYER”)

Dated as of February 28, 2005

 

 

FIRST AMENDMENT

     This FIRST AMENDMENT to the Asset Purchase Agreement (“First Amendment”) is made and entered
into as of February 28, 2005, by and among DIAKON LUTHERAN SOCIAL MINISTRIES, TRESSLER LUTHERAN
SERVICES, THE LUTHERAN WELFARE SERVICE OF NORTHEASTERN PENNSYLVANIA, INC., THE LUTHERAN HOME AT
TOPTON, PENNSYLVANIA AND SUSQUEHANNA HOUSING, INC. (“Seller”) and RE SELINSGROVE, LLC, RE MIFFLIN,
LLC, RE HAZLETON, LLC, RE POTTSVILLE, LLC, RE NEW BLOOMFIELD, LLC, RE MILLERSBURG, LLC and RE
EVERETT, LLC, RE FROSTBURG, LLC, RE SALISBURY, LLC, (“Buyer”) AND OP SELINSGROVE, LLC, OP MIFFLIN,
LLC, OP HAZLETON, LLC, OP NEW BLOOMFIELD, LLC,, OP MILLERSBURG, LLC, OP EVERETT, LLC, OP FROSTBURG,
LLC AND OP SALISBURY, LLC (“BUYER’S OPERATORS).

WITNESSETH:

     WHEREAS, Seller and Buyer have entered into that certain Asset Purchase Agreement as of
February 15, 2005 (“Asset Purchase Agreement”), whereby Seller agreed to sell, and Buyer agreed to
purchase substantially all of the assets of certain nursing homes, assisted living facilities, and
independent living facilities owned by Seller throughout Pennsylvania and Maryland, specifically
identified on Exhibit “A” attached hereto; and

     WHEREAS, Seller and Buyer have found it necessary to modify certain terms of said Asset
Purchase Agreement in order to clarify their further negotiations regarding the same; and

     WHEREAS, the parties desire to set forth those certain changes to the Asset Purchase Agreement
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. Buyer has created an additional party to be added to the Asset Purchase Agreement as a
Buyer as follows: OP Hazleton II, LLC. Said new Buyer shall be added in the introductory paragraph
as one of the Buyer’s Operators and on the signature pages of the Asset Purchase Agreement and this
First Amendment.

     2. Paragraph 1.3, Assumed Liabilities, of the Asset Purchase Agreement, shall hereby
be amended to add the following subsection:

 

 

(vi) the Farmer’s Home Administration Mortgage (“FHA Mortgage”) on the Margaret
Morne Apartments, located at Susquehanna Lutheran Village, with a concomitant
credit to the Purchase Price for the amount of the mortgage assumed by the Buyer as
of the Closing Date. The amortization schedule for the FHA Mortgage is attached
hereto as Exhibit A. In the event that the FHA Mortgage cannot be assumed as of
the Closing Date, the parties agree to negotiate an interim agreement as they work
towards this goal.

     3. Paragraph 2.1, Purchase Price, at 2.1.1(a) shall be amended by deleting the word
“secured” in front of the words “promissory note”.

     4. Paragraph 8.3 of said Asset Purchase Agreement, Pre-Closing Confirmations, shall
hereby be amended by adding the following subsection:

8.3.5 The removal or permanent extinguishment of the right of first refusal and any
other approval processes from any agreement or title requirement for the Bedford
County property known as Pennknoll Village, as disclosed in Schedule 4.10 to the
Asset Purchase Agreement.

     5. Paragraph 13.20 of said Asset Purchase Agreement , Incorporation by Reference,
shall be hereby amended by removing the date, February 28, 2005, and substituting the new date of
March 11, 2005, in its place.

     6. The parties hereto otherwise ratify and confirm all of the remaining terms of the Asset
Purchase Agreement.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed in
multiple originals by their duly 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:

	 	RE SELINSGROVE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE MIFFLIN, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE HAZLETON, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE POTTSVILLE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE NEW BLOOMFIELD, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE MILLERSBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 3 -

 

	 	 	 
	 

	 	RE EVERETT, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE FROSTBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE SALISBURY, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	BUYER’S OPERATORS
	 
	 	 
	 

	 	OP SELINSGROVE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP MIFFLIN, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP HAZLETON, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP HAZLETON II, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 4 -

 

	 	 	 
	 

	 	OP POTTSVILLE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP NEW BLOOMFIELD, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP MILLERSBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP EVERETT, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP FROSTBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP SALISBURY, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 5 -

 

	 	 	 
	SELLER:

	 	DIAKON LUTHERAN SOCIAL MINISTRIES
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: The Rev. Dr. Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	TRESSLER LUTHERAN SERVICES
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: The Rev. Dr. Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	THE LUTHERAN WELFARE SERVICE OF NORTHEASTERN
PENNSYLVANIA, INC.
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: The Rev. Dr. Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	THE LUTHERAN HOME AT TOPTON, PENNSYLVANIA
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: The Rev. Dr. Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	SUSQUEHANNA HOUSING, INC.
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: The Rev. Dr. Daun E. McKee
	 

	 	Title: President and Chief Executive Officer

 - 6 -Exhibit 10.28

 

Exhibit
10.28

SECOND AMENDMENT TO THE

ASSET PURCHASE AGREEMENT

BY AND AMONG

DIAKON LUTHERAN SOCIAL MINISTRIES, ET AL.

(“SELLER”)

AND

RE SELINSGROVE, LLC, ET AL.

(“BUYER”)

Dated as of March 15, 2005

 

SECOND AMENDMENT

     This SECOND AMENDMENT to the Asset Purchase Agreement (“Second Amendment”) is made and entered
into as of March 15, 2005, by and among DIAKON LUTHERAN SOCIAL MINISTRIES, TRESSLER LUTHERAN
SERVICES, THE LUTHERAN WELFARE SERVICE OF NORTHEASTERN PENNSYLVANIA, INC., THE LUTHERAN HOME AT
TOPTON, PENNSYLVANIA AND SUSQUEHANNA HOUSING, INC. (“Seller”) and RE SELINSGROVE, LLC, RE MIFFLIN,
LLC, RE HAZLETON, LLC, RE POTTSVILLE, LLC, RE NEW BLOOMFIELD, LLC, RE MILLERSBURG, LLC and RE
EVERETT, LLC, RE FROSTBURG, LLC, RE SALISBURY, LLC, (“Buyer”) AND OP SELINSGROVE, LLC, OP MIFFLIN,
LLC, OP HAZLETON, LLC, OP HAZLETON II, LLC, OP NEW BLOOMFIELD, LLC,, OP MILLERSBURG, LLC, OP
EVERETT, LLC, OP FROSTBURG, LLC AND OP SALISBURY, LLC (“BUYER’S OPERATORS).

WITNESSETH:

     WHEREAS, Seller and Buyer have entered into that certain Asset Purchase Agreement as of
February 15, 2005 (“Asset Purchase Agreement”), whereby Seller agreed to sell, and Buyer agreed to
purchase substantially all of the assets of certain nursing homes, assisted living facilities, and
independent living facilities owned by Seller throughout Pennsylvania and Maryland, specifically
identified on Exhibit “A” attached hereto; and

     WHEREAS, Seller and Buyer entered into the First Amendment to the Asset Purchase Agreement, as
of February 28, 2005; and

     WHEREAS, Seller and Buyer have found it necessary to further modify certain terms of said
Asset Purchase Agreement in order to clarify their further negotiations regarding the same; and

     WHEREAS, the parties desire to set forth those certain changes to the Asset Purchase Agreement
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. Section 2.2, Allocation of Purchase Price, shall be amended to add the following
sentence: “Seller and Buyer’s agreed upon Allocation of the Purchase Price shall be attached
hereto as Schedule 2.2.”

     2. The Schedule reference in Section 4.14.11 in the Asset Purchase Agreement is hereby amended
from Schedule 4.14.10 to 4.14.11.

 

     3. Section 5.6, Brokers and Finders, of the Asset Purchase Agreement is hereby amended
to reference the Schedule 5.4 to become Schedule 5.6.

     4. Section 8.17, Financing, of the Asset Purchase Agreement is hereby amended and
restated to read as follows: “Buyer shall have obtained one or more debt and/or equity financing
commitments from Behrman Capital, Merrill Lynch Capital, a division of Merrill Lynch Business
Financial Services, Inc., and LaSalle Bank (collectively “Lender”), and Buyer shall have received
the proceeds of said financing in an amount sufficient to enable Buyer to pay the Purchase Price as
of the Closing Date.

     5. Schedule 10.1(a), Locations, is hereby renumbered to be Schedule 10.1.

     6. Section 13.19.3, shall read “Intentionally Omitted”.

     7. Paragraph 13.20 of said Asset Purchase Agreement, Incorporation by Reference, shall
be hereby amended by removing the date, March 11, 2005, and substituting the new date of March 15,
2005, in its place.

     8. The parties hereto hereby agree to the attached Exhibit B, Addendum to the Schedules of the
Asset Purchase Agreement, as of this date. The parties further agree that the parties are not in
complete agreement with the remaining wording of Schedule 4.14, and have identified issues related
thereto and will amend said Schedule in a subsequent amendment to the Asset Purchase Agreement.

     9. The parties hereto otherwise ratify and confirm all of the remaining terms of the Asset
Purchase Agreement.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 - 2 -  

 

     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:

	 	RE SELINSGROVE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE MIFFLIN, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE HAZLETON, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE POTTSVILLE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE NEW BLOOMFIELD, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE MILLERSBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 3 -

 

	 	 	 
	 

	 	RE EVERETT, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE FROSTBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	RE SALISBURY, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	BUYER’S OPERATORS
	 
	 	 
	 

	 	OP SELINSGROVE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP MIFFLIN, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP HAZLETON, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP HAZLETON II, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 4 -

 

	 	 	 
	 

	 	OP POTTSVILLE, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP NEW BLOOMFIELD, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP MILLERSBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP EVERETT, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP FROSTBURG, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary
	 
	 	 
	 

	 	OP SALISBURY, LLC
	 
	 	 
	 

	 	By: /s/ Rosemary L. Corsetti
	 

	 	 

	 

	 	Name: Rosemary L. Corsetti
	 

	 	Title: Secretary

 - 5 -

 

	 	 	 
	SELLER:

	 	DIAKON LUTHERAN SOCIAL MINISTRIES
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	TRESSLER LUTHERAN SERVICES
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	THE LUTHERAN WELFARE SERVICE OF NORTHEASTERN
PENNSYLVANIA, INC.
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	THE LUTHERAN HOME AT TOPTON, PENNSYLVANIA
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: Daun E. McKee
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	SUSQUEHANNA HOUSING, INC.
	 
	 	 
	 

	 	By: /s/ Daun E. McKee
	 

	 	 

	 

	 	Name: Daun E. McKee
	 

	 	Title: President and Chief Executive Officer

 - 6 -

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