Document:

ex10_2i.htm

     

     

     

      Exhibit
10.2i

    
 

    SUPPLEMENT NO. 9 dated as of November __,
2008, to the Security Agreement dated as of February 6, 2006 among CRC HEALTH
CORPORATION, a Delaware corporation (f/k/a CRC HEALTH GROUP, INC.) (the “Borrower”), CRC
HEALTH GROUP, INC., a Delaware corporation, (f/k/a/ CRCA Holdings, Inc.) (“Holdings”), and the
Subsidiaries of the Borrower identified therein and CITIBANK, N.A., as
Collateral Agent for the Secured Parties (as defined below).

     

    A.           Reference
is made to the Credit Agreement dated as of February 6, 2006 (as amended and
restated as of November 17, 2006 and as subsequently amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”),
among Holdings, the Borrower, the lenders from time to time party thereto,
Citibank, N.A., as Administrative Agent, Collateral Agent, Swing Line Lender and
L/C Issuer, each Lender from time to time party thereto, JPMorgan Chase Bank,
N.A., as Syndication Agent, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated and Credit Suisse, as Co-Documentation Agents.

     

    B.           Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement and the Security Agreement
referred to therein.

     

    C.           The
Grantors have entered into the Security Agreement in order to induce the Lenders
to make Loans and the L/C Issuers to issue Letters of
Credit.  Section 7.14 of the Security Agreement provides that
additional Restricted Subsidiaries of the Borrower may become Subsidiary Parties
under the Security Agreement by execution and delivery of an instrument in the
form of this Supplement.  The undersigned Restricted Subsidiary (the
“New Subsidiary”) is
executing this Supplement in accordance with the requirements of the Credit
Agreement to become a Subsidiary Party under the Security Agreement in order to
induce the Lenders to make additional Loans and the L/C Issuers to issue
additional Letters of Credit and as consideration for Loans previously made and
Letters of Credit previously issued.

     

    Accordingly,
the Collateral Agent and the New Subsidiary agree as follows:

     

    SECTION
1.  In accordance with Section 7.14 of the Security
Agreement, the New Subsidiary by its signature below becomes a Subsidiary Party
(and accordingly, becomes a Grantor) and Grantor under the Security Agreement
with the same force and effect as if originally named therein as a Subsidiary
Party and the New Subsidiary hereby (a) agrees to all the terms and provisions
of the Security Agreement applicable to it as a Subsidiary Party and Grantor
thereunder and (b) represents and warrants that the representations and
warranties made by it as a Grantor thereunder are true and correct on and as of
the date hereof.  In furtherance of the foregoing, the New Subsidiary,
as security for the payment and performance in full of the Obligations does
hereby create and grant to the Collateral Agent, its successors and assigns, for
the benefit of the Secured Parties, their successors and assigns, a security
interest in and lien on all of the New Subsidiary’s right, title and interest in
and to the Collateral (as defined in the Security Agreement) of the New
Subsidiary.  Each reference to a “Grantor” in the Security Agreement
shall be deemed to include the New Subsidiary.  The Security Agreement
is hereby incorporated herein by reference.

     

    SECTION
2.  The New Subsidiary represents and warrants to the
Collateral Agent and the other Secured Parties that this Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its
terms.

     

    SECTION
3.  This Supplement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which when
taken together shall constitute a single contract.  Delivery by
telecopier of an executed counterpart of a signature page to this Supplement
shall be as effective as delivery of an original executed counterpart of this
Supplement.  This Supplement shall become effective when the
Collateral Agent shall have received a counterpart of this Supplement that bears
the signature of the New Subsidiary and a counterpart hereof shall have been
executed on behalf of the Collateral Agent, and thereafter shall be binding upon
such New Subsidiary and the Collateral Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such New Subsidiary,
the Collateral Agent and the other Secured Parties and their respective
successors and assigns, except that the New Subsidiary shall not have the right
to assign or transfer its rights or obligations hereunder or any interest herein
or in the Collateral (and any such assignment or transfer shall be void) except
as expressly contemplated by the Security Agreement or the Credit
Agreement.

     

    SECTION
4.  The New Subsidiary hereby represents and warrants that
(a) set forth on Schedule I attached hereto is a true and correct
schedule of the location of any and all Collateral of the New Subsidiary and
(b) set forth under its signature hereto is the true and correct legal name
of the New Subsidiary, its jurisdiction of formation and the location of its
chief executive office.

     

    SECTION
5.  Except as expressly supplemented hereby, the Security
Agreement shall remain in full force and effect.

     

    SECTION
6.  THIS SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    SECTION
7.  Any provision of this Supplement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

     

    SECTION
8.  All communications and notices hereunder shall be in
writing and given as provided in Section 7.01 of the Security
Agreement.

     

    SECTION
9.  The New Subsidiary agrees to reimburse the Collateral Agent
for its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for
the Collateral Agent.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly executed
this Supplement to the Security Agreement as of the day and year first above
written.

     

    CRC
HOLDINGS, LLC

     

    By:                                                                       

    
      	
               
      

            	
              Name:
      Kevin Hogge

            

    

    
      	
               
      

            	
              Title:   Chief
      Financial Officer

            

    

     

    
      	
               
      

            	
              Legal
      Name:  CRC Holdings, LLC

            

    

     

    
      	
               
      

            	
              Jurisdiction
      of Formation:  Delaware

            

    

     

    
      	
               
      

            	
              Location
      of Chief Executive office:

            

    

     

    

     

    
      	
               
      

            	
              20400
      Stevens Creek Blvd.

            

    

     

    
      	
               
      

            	
              Suite
      600

            

    

     

    
      	
               
      

            	
              Cupertino,
      California 95014

            

    

     

    
      
        
          Signature
Page to Supplement to Security Agreement

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    CITIBANK,
N.A.,

    as
Collateral Agent

     

    By:                                                                       

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

     

    

    
      
        
          Signature
Page to Supplement to Security Agreement

        

         

      

      
         

        
          

        

      

      
         

        
          Schedule
I to Security Agreement Supplement

          

          

        

      

    

    DelawareExhibit 10.81

EXHIBIT 10.81

EQUITY PURCHASE AGREEMENT

This Equity Purchase Agreement is dated as of December 31, 2007, by and between Jeffrey A.
Patterson, an individual residing in Hinsdale, Illinois (the “Executive”), and Prime Office Company
LLC, a Delaware limited liability company (the “Company”).

W I T N E S S E T H:

WHEREAS, the Executive is President and Chief Executive Officer of Prime Group Realty Trust, a
subsidiary of the Company, and the Company and Executive have entered into that certain Employment
Agreement dated as of May 31, 2005 (as amended, the “Employment Agreement”);

WHEREAS, the Company desires to grant to Executive an option to purchase from the Company the
equity interest described below, subject to the terms and conditions hereinafter set forth.

NOW, THEREFORE, for good and valuable consideration, the parties hereto agree as follows:

1. Option. The Executive will be permitted to purchase either directly or through
equity ownership in the Company up to 3.5% of the equity ownership (the “Equity”) of Prime Group
Realty, L.P. and Prime Group Realty Trust (the “Equity”) in the form of L.P. units, shares,
membership interests or similar units of the same class at a price and on substantially the same
other economic terms as Prime Office Company LLC’s other initial equity investors (the
“Investors”), taking into account both capital contributions and distributions since the date of
the original investment. In addition, the “purchase price” for the Equity as calculated pursuant
to the terms of the Employment Agreement shall be increased at the rate of seven percent (7%) per
year, pro-rated on a per diem basis, from January 1, 2007 through to the closing of the purchase of
the Equity by Executive. This option will expire at 5:00 p.m. New York time, on December 31, 2008,
subject to earlier termination if not exercised prior to Executive’s employment termination under
the Employment Agreement.

Executive shall be entitled to exercise the Option at any time through December 31, 2008, but
the closing on the purchase of the Equity may only be effective on the earlier of (i) immediately
preceding a “change of control” as defined in the Employment Agreement and (ii) December 31, 2008.
The closing shall still occur and the exercise of the Option shall be effective if Executive’s
employment is terminated in connection with or in anticipation of a “change of control” after the
exercise of the Option but prior to the closing on the purchase of the Equity. The Executive may
conditionally exercise the Option contingent on the actual closing of a “change of control”.

 

 

 

To the extent the Company is funded through additional issuances of
equity, the Executive shall be given an opportunity to purchase additional equity in an amount
necessary to preserve the Executive’s 3.5% percent of ownership. The price for such additional
Equity shall be the purchase price paid for the additional equity issuance that gave rise to the
additional Equity purchase opportunity.

The Company will provide Executive at least ten business days notice prior to any cash
distributions resulting from financing or sale transactions (as opposed to from operations) to the
Investors such that Executive shall have an opportunity to purchase Equity prior thereto and
thereby be entitled to share in any such distribution. This notice obligation shall cease once
Executive has purchased all of the Equity.

2. Purchase Loan. The Lightstone Group LLC or an affiliate thereof (“Lightstone”)
will make a loan (“Loan”) available to the Executive for his purchase of the Equity. The principal
and interest on the loan will be subject to a ten-year balloon repayment with interest accruing
annually at 7%; provided that Executive shall be required to apply the net after-tax cash proceeds
of any distributions from the Company towards payment of the Loan. The Loan shall be secured by
the Equity and non-recourse to the Executive.

The Loan may be prepaid without penalty. The Loan will accelerate and become due to the
extent of any transfer or sale of Equity by Executive other than as permitted below.

3. Transfer Restrictions. No Equity issued to the Executive may be transferred
(subject to customary exceptions for estate planning, transfers at death and transfers to an entity
controlled solely by the Executive and formed solely for the benefit of the Executive and his
immediate family), except as permitted under drag-along, tag-along or registration rights.

4. Tag-Along, Drag-Along and Registration Rights. Executive’s Equity will be subject
to customary tag-along drag-along and registration rights.

5. Termination of Restrictions. The restrictions on transfer shall terminate in the
event of an IPO or other transaction whereby the Equity becomes publicly traded, subject to any
lock-up restrictions imposed on other employee shareholders of the Company or its affiliates.

6. Miscellaneous.

(a) The validity, interpretation and effect of this Award Agreement shall be governed by the
laws of the State of Illinois, excluding the “conflicts of laws” rules thereof.

(b) Signed copies of this Agreement may be executed in counterparts and/or sent by facsimile
or email and shall be as effective and binding as original copies.

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Award Agreement on the day and
year first above written.

	 	 	 	 	 
	 	PRIME OFFICE COMPANY, LLC

 	 
	 	By:  	/s/ David Lichtenstein
 	 
	 	 	Name:  	David Lichtenstein 	 
	 	 	Title:  	President 	 
	 	 	 
	 	             /s/ Jeffrey A. Patterson
 	 
	 	Jeffrey A. Patterson 	 

 

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