Document:

exv10w44

 

Exhibit 10.44

THIRD AMENDMENT TO CREDIT AGREEMENT

     THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is made as of June 27, 2007
between SUNRISE SENIOR LIVING, INC. a Delaware corporation (the “Company”), and BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer (the “Administrative
Agent”) for itself and certain additional lenders who are or shall be from time to time
participating as lenders pursuant to the Credit Agreement as hereinafter defined (collectively with
the Administrative Agent, the “Lenders”).

RECITALS

     A. The Lenders have made a Credit Facility available to the Company in the maximum principal
sum at any one time outstanding of $250,000,000.

     B. The Credit Facility is governed by a Credit Agreement dated December 2, 2005 as amended by
that certain First Amendment to Credit Agreement dated March 6, 2006 and that certain Second
Amendment to Credit Agreement dated January 31, 2007 (as amended by this Agreement, and as further
amended, modified, substituted, extended and renewed from time to time the “Credit Agreement”) by
and between the Company and the Lenders.

     C. The Credit Facility is guaranteed by the Guarantors pursuant to the terms of the Credit
Agreement.

     D. The Company and the Lenders have agreed to (i) modify the delivery deadlines for certain
financial statements; (ii) increase the applicable interest rate of the Loan until delivery of the
delayed financial statements; and (iii) make such other changes to the Credit Agreement as are more
particularly set forth herein.

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

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises, the mutual agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company, the Lenders and the Administrative Agent hereby agree as follows:

     1. The above Recitals are a part of this Agreement. Unless otherwise expressly defined in
this Agreement, terms defined in the Credit Agreement shall have the same meaning under this
Agreement.

 

 

     2. The Company represents and warrants to the Lender as follows:

          (a) The Company has the power and authority to execute and deliver this Agreement and perform
its obligations hereunder;

          (b) The Credit Agreement, as amended by this Agreement, and each of the other Loan Documents
remains in full force and effect, and each constitutes the valid and legally binding obligation of
Borrower, enforceable in accordance with its terms;

          (c) All of the Company’s representations and warranties contained in the Credit Agreement and
the other Loan Documents are true and correct on and as of the date of the Company’s execution of
this Agreement with the exception of representations and warranties regarding financial statements
described in Section 6.5 of the Credit Agreement; and

          (d) No Event of Default and no event which, with notice, lapse of time or both would
constitute an Event of Default, has occurred and is continuing under the Credit Agreement or the
other Loan Documents which has not been waived in writing by the Lender.

     3. Section 1.1 (Defined Terms) of the Credit Agreement is hereby modified by amending and
restating the definition of “Applicable Rate” in its entirety as follows:

““Applicable Rate” means the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate
received by the Administrative Agent pursuant to Section 7.2:

	 	 	 	 	 	 	 
	Pricing Level
	 	Leverage Ratio
	 	Eurodollar Rate Loans

Margin

(bps)
	 	Base Rate Loans

Margin

(bps)
	I
	 	< 2.25x
	 	170
	 	 0
	II
	 	3 2.25x but < 3.00x
	 	185
	 	25
	III
	 	3 3.00x but < 3.75x
	 	200
	 	50
	IV
	 	3 3.75x
	 	250
	 	75

Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Adjusted Leverage Ratio shall become effective as of the first Business
Day immediately following the date a Compliance Certificate is delivered pursuant to
Section 7.2; provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section and such
failure continues for ten (10) days after written notice thereof to the Company,
then Pricing Level IV shall apply as of the first Business Day after the date on
which such Compliance Certificate was required to have been delivered.”

     4. The Company hereby acknowledges and agrees that pursuant to the terms of Sections 7.1 and
7.2 of the Credit Agreement the Company is required to deliver to the Administrative Agent certain
quarterly and annual financial statements and certain Compliance Certificates within the time
period specified therein. The Company, the Administrative Agent and the Lenders hereby agree to
modify the delivery dates of: (a) all quarterly financial statements for 2006, (b) quarterly
financial statement for the quarters ending March 31, 2007 and June 30, 2007, and (c) the annual
financial statement for the Company for the fiscal year ending December 31, 2006, as each such
financial statement was to be submitted to the SEC, and (d) the

2

 

Compliance Certificates to be submitted to the Administrative Agent with each such financial
statement required pursuant to Section 7.2 of the Credit Agreement (collectively, the “Outstanding
Financial Reports”). The modification applies to the quarterly statements for the fiscal quarters
ending March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006, March 31, 2007 and
June 30, 2007 and the annual statement for the fiscal year ended December 31, 2006. As amended by
this Agreement, the financial statements will be due no later than September 15, 2007.

     5. The Company, the Administrative Agent and the Lenders hereby agree that as of July 1, 2007,
the Applicable Rate provided as Pricing Level IV is hereby amended by increasing the Eurodollar
Rate Loans Margin from two hundred twenty-five (225) basis points to two hundred fifty (250) basis
points. The Borrowers shall continue to pay interest on the Outstanding Amount at the Applicable
Rate provided as Pricing Level IV, as amended by this Agreement, under the terms and conditions
provided in the Credit Agreement until the date of the delivery to the Administrative Agent of the
Outstanding Financial Reports.

     6. The Company, the Administrative Agent and the Lenders hereby agree that commencing with
reports for operations during the month of December, 2006 through the date of the delivery to the
Administrative Agent of the Outstanding Financial Reports, the Company shall deliver, within
forty-five (45) days after the end of each month, internally prepared operating data that reflects
revenue, expense, margin, average daily rate and occupancy for only such Senior Living Facilities,
on an aggregate basis, in which the Company or its affiliates have an ownership interest and which
operated in both the current month and the corresponding month of the previous fiscal year in
comparative form for both periods fairly presenting the financial condition of such Senior Living
Facility.

     7. As a condition precedent to this Agreement, the Company shall provide to Administrative
Agent, in form and detail satisfactory to Administrative Agent: (i) internally prepared financial
statements (balance sheet and income statement only) for its fiscal years ending 2005 and 2006 and
(ii) an internally prepared projected financial statement for its fiscal year ending 2007. On or
before August 15, 2007 the Company will indicate to the Lenders its comfort relative to the
projected plan for its fiscal year ending 2007.

     8. The Company, the Administrative Agent and the Lenders hereby agree that the Company shall
pay to the Administrative Agent for the account of each Lender that executes this Agreement, in
accordance with its Applicable Percentage, a fee equal to twelve and one-half (12.5) basis points.

     9. Except as specifically set forth herein, the terms, provisions and covenants of the Credit
Agreement, including, but not limited to, all financial covenants and definitions related thereto,
are hereby ratified and confirmed and remain in full force and effect.

     10. 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.

3

 

     11. By their signatures below, the Guarantors consent to the transactions contemplated by and
the agreements made by the Company under this Agreement and ratify, confirm and reissue their
guaranty as set forth in the Credit Agreement.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered under seal by their duly authorized representatives as of the date and year first written
above.

	 	 	 	 	 
	 	COMPANY:

SUNRISE SENIOR LIVING, INC.

 	 
	 	By:  	/s/ Carl G. Adams
 	(Seal)
	 	 	Carl G. Adams 	 
	 	 	Treasurer 	 
	 
	 	GUARANTORS:

SUNRISE SENIOR LIVING MANAGEMENT, INC.

 
	 	By:  	/s/ Carl G. Adams
 	(Seal)
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE SENIOR LIVING INVESTMENTS, INC.

 
	 	By:  	/s/ Carl G. Adams
 	(Seal)
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE DEVELOPMENT, INC.

 	 
	 	By:  	/s/ Carl G. Adams
 	(Seal)
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE SENIOR LIVING SERVICES, INC.

 	 
	 	By:  	/s/ Carl G. Adams
 	(Seal)
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Kristine Thennes
 	(Seal)
	 	 	Name:  	Kristine Thennes 	 
	 	 	Title:  	Vice President 	 
	 

S-2

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line
Lender

 	 
	 	By:  	/s/ Michael J. Landini
 	(Seal)
	 	 	Michael J. Landini 	 
	 	 	Senior Vice President 	 
	 

S-3

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Frank S. Kaulback III
 	 
	 	 	Frank S. Kaulback III 	 
	 	 	Senior Vice President 	 
	 

S-4

 

	 	 	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Sam L. Dendrinos
 	 
	 	 	Sam L. Dendrinos 	 
	 	 	Senior Vice President 	 

S-5

 

	 	 	 	 	 

	 	 	 	 	 
	 	HSBC BANK USA, N.A., as a Lender

 	 
	 	By:  	/s/ Jeffrey M. Henry
 	 
	 	 	Jeffrey M. Henry 	 
	 	 	Vice President 	 

S-6

 

	 	 	 	 	 

	 	 	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender

 	 
	 	By:  	/s/ Sharon P. O'Brien
 	 
	 	 	Sharon P. O'Brien 	 
	 	 	Vice President 	 
	 

S-7

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Douglas T. Brown
 	 
	 	 	Douglas T. Brown 	 
	 	 	Senior Vice President 	 

S-8

 

	 	 	 	 	 

	 	 	 	 	 
	 	CHEVY CHASE BANK, F.S.B., as a Lender

 	 
	 	By:  	/s/ Ellen-Elizabeth B. Lee
 	 
	 	 	Ellen-Elizabeth B. Lee 	 
	 	 	Assistant Vice President 	 

S-9

 

	 	 	 	 	 

	 	 	 	 	 
	 	FARMERS & MECHANICS BANK, as a Lender

 	 
	 	By:  	/s/ William W. Drummond
 	 
	 	 	William W. Drummond 	 
	 	 	Senior Vice President 	 

S-10

 

	 	 	 	 	 

	 	 	 	 	 
	 	FIRST HORIZON BANK a division of FIRST TENNESSEE
BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Kenneth W. Rub
 	 
	 	 	Kenneth W. Rub 	 
	 	 	Vice President 	 
	 

S-11exv10w45

 

Exhibit 10.45

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is made as of September 17, 2007
between SUNRISE SENIOR LIVING, INC. a Delaware corporation (the “Company”), and BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer (the “Administrative
Agent”) for itself and certain additional lenders who are or shall be from time to time
participating as lenders pursuant to the Credit Agreement as hereinafter defined (collectively with
the Administrative Agent, the “Lenders”).

RECITALS

     A. The Lenders have made a Credit Facility available to the Company in the maximum principal
sum at any one time outstanding of $250,000,000.

     B. The Credit Facility is governed by a Credit Agreement dated December 2, 2005 as amended by
that certain First Amendment to Credit Agreement dated March 6, 2006, that certain Second Amendment
to Credit Agreement dated January 31, 2007 and that certain Third Amendment to Credit Agreement
dated June 27, 2007 (as amended by this Agreement, and as further amended, modified, substituted,
extended and renewed from time to time the “Credit Agreement”) by and between the Company and the
Lenders.

     C. The Credit Facility is guaranteed by the Guarantors pursuant to the terms of the Credit
Agreement.

     D. The Company and the Lenders have agreed to (i) modify the delivery deadlines for certain
financial statements; (ii) and make such other changes to the Credit Agreement as are more
particularly set forth herein.

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

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises, the mutual agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company, the Lenders and the Administrative Agent hereby agree as follows:

     1. The above Recitals are a part of this Agreement. Unless otherwise expressly defined in
this Agreement, terms defined in the Credit Agreement shall have the same meaning under this
Agreement.

 

 

     2. The Company represents and warrants to the Lender as follows:

          (a) The Company has the power and authority to execute and deliver this Agreement and perform
its obligations hereunder;

          (b) The Credit Agreement, as amended by this Agreement, and each of the other Loan Documents
remains in full force and effect, and each constitutes the valid and legally binding obligation of
Borrower, enforceable in accordance with its terms;

          (c) All of the Company’s representations and warranties contained in the Credit Agreement and
the other Loan Documents are true and correct on and as of the date of the Company’s execution of
this Agreement with the exception of representations and warranties regarding financial statements
described in Section 6.5 of the Credit Agreement; and

          (d) No Event of Default and no event which, with notice, lapse of time or both would
constitute an Event of Default, has occurred and is continuing under the Credit Agreement or the
other Loan Documents which has not been waived in writing by the Lender.

     3. The Company hereby acknowledges and agrees that pursuant to the terms of Sections 7.1 and
7.2 of the Credit Agreement the Company is required to deliver to the Administrative Agent certain
quarterly and annual financial statements and certain Compliance Certificates within the time
period specified therein. The Company, the Administrative Agent and the Lenders hereby agree to
modify the delivery dates of: (a) all quarterly financial statements for 2006, (b) quarterly
financial statement for the quarters ending March 31, 2007, June 30, 2007 and September 30, 2007,
and (c) the annual financial statement for the Company for the fiscal year ending December 31,
2006, as each such financial statement was to be submitted to the SEC, and (d) the Compliance
Certificates to be submitted to the Administrative Agent with each such financial statement
required pursuant to Section 7.2 of the Credit Agreement (collectively, the “Outstanding Financial
Reports”). The modification applies to the quarterly statements for the fiscal quarters ending
March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006, March 31, 2007, June 30, 2007
and September 30, 2007 and the annual statement for the fiscal year ended December 31, 2006. As
amended by this Agreement, the financial statements will be due no later than January 31, 2008.

     4. The Company, the Administrative Agent and the Lenders hereby agree that on or before
December 31, 2007, the Company shall provide to Administrative Agent, in form and detail
satisfactory to Administrative Agent: (i) an internally prepared financial statement (balance sheet
and income statement only) for the fiscal quarter ending September 30, 2007 and (ii) a preliminary
financial covenant Compliance Certificate for the fiscal quarter ending September 30, 2007.

     5. The Company, the Administrative Agent and the Lenders hereby agree that the Company shall
pay to the Administrative Agent for the account of each Lender that executes this Agreement, in
accordance with its Applicable Percentage, a fee equal to twelve and one-half (12.5) basis points.

2

 

     6. The Company, the Administrative Agent and the Lenders hereby agree that commencing with
reports for operations during the month of December, 2006 through the date of
the delivery to the Administrative Agent of the Outstanding Financial Reports, the Company
shall deliver, within forty-five (45) days after the end of each month, internally prepared
operating data that reflects revenue, expense, margin, average daily rate and occupancy for only
such Senior Living Facilities, on an aggregate basis, in which the Company or its affiliates have
an ownership interest and which operated in both the current month and the corresponding month of
the previous fiscal year in comparative form for both periods fairly presenting the financial
condition of such Senior Living Facility.

     7. Except as specifically set forth herein, the terms, provisions and covenants of the Credit
Agreement, including, but not limited to, all financial covenants and definitions related thereto,
are hereby ratified and confirmed and remain in full force and effect.

     8. 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.

     9. By their signatures below, the Guarantors consent to the transactions contemplated by and
the agreements made by the Company under this Agreement and ratify, confirm and reissue their
guaranty as set forth in the Credit Agreement.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered under seal by their duly authorized representatives as of the date and year first written
above.

	 	 	 	 	 
	 	COMPANY:

SUNRISE SENIOR LIVING, INC.

 	 
	 	By:  	/s/ Carl G. Adams
 	(Seal) 
	 	 	Carl G. Adams 	 
	 	 	Treasurer 	 
	 
	 	GUARANTORS:

SUNRISE SENIOR LIVING MANAGEMENT, INC.

 
	 	By:  	/s/ Carl G. Adams
 	(Seal) 
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE SENIOR LIVING INVESTMENTS, INC.

 
	 	By:  	/s/ Carl G. Adams
 	(Seal) 
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE DEVELOPMENT, INC.

 	 
	 	By:  	                /s/ Carl G. Adams
 	(Seal) 
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 
	 
	 	SUNRISE SENIOR LIVING SERVICES, INC.

 	 
	 	By:  	/s/ Carl G. Adams
 	(Seal) 
	 	 	Carl G. Adams 	 
	 	 	Vice President 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as
Administrative Agent

 	 
	 	By:  	/s/ Kristine Thennes
 	(Seal) 
	 	 	Name:  	Kristine Thennes 	 
	 	 	Title:  	Vice President 	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line
Lender

 	 
	 	By:  	/s/ Michael J. Landini
 	(Seal) 
	 	 	Michael J. Landini 	 
	 	 	Senior Vice President 	 

S-3

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Frank S. Kaulback III
 	 
	 	 	Frank S. Kaulback III 	 
	 	 	Senior Vice President 	 

S-4

 

	 	 	 	 	 

	 	 	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Sam L. Dendrinos
 	 
	 	 	Sam L. Dendrinos 	 
	 	 	Senior Vice President 	 

S-5

 

	 	 	 	 	 

	 	 	 	 	 
	 	HSBC BANK USA, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Jeffrey M. Henry 	 
	 	 	Vice President 	 

S-6

 

	 	 	 	 	 

	 	 	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender

 	 
	 	By:  	/s/ Sharon P. O’Brien
 	 
	 	 	Sharon P. O’Brien 	 
	 	 	Vice President 	 

S-7

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Douglas T. Brown
 	 
	 	 	Douglas T. Brown 	 
	 	 	Senior Vice President 	 

S-8

 

	 	 	 	 	 

	 	 	 	 	 
	 	CHEVY CHASE BANK, F.S.B., as a Lender

 	 
	 	By:  	/s/ Ellen-Elizabeth B. Lee
 	 
	 	 	Ellen-Elizabeth B. Lee 	 
	 	 	Assistant Vice President 	 

S-9

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender, in its
own right and as successor by merger to Farmers &
Mechanics Bank

 	 
	 	By:  	/s/ Douglas T. Brown
 	 
	 	 	Douglas T. Brown 	 
	 	 	Senior Vice President 	 

S-10

 

	 	 	 	 	 

	 	 	 	 	 
	 	FIRST HORIZON BANK a division of FIRST TENNESSEE
BANK, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Kenneth W. Rub 	 
	 	 	Vice President 	 
	 

S-11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]