EXHIBIT 10.8
PROMISSORY NOTE B-1
$5,000,000.00 New York, New York
August 19, 2003
FOR VALUE RECEIVED, each of the entities set forth on Schedule A
annexed hereto, jointly and severally, as maker, having its principal place of
business at 27442 Portola Parkway, Suite 200, Foothill Ranch, California 92610
(collectively, "BORROWER"), hereby unconditionally promises to pay to the order
of COLUMN FINANCIAL, INC., a Delaware corporation, as lender, having an address
at 11 Madison Avenue, New York, New York 10010 ("LENDER"), or at such other
place as the holder hereof may from time to time designate in writing, the
principal sum of FIVE MILLION and No/100 DOLLARS ($5,000,000.00), in lawful
money of the United States of America with interest thereon to be computed from
the date of this Promissory Note B-1 at the Applicable Interest Rate, and to be
paid in accordance with the terms of this Promissory Note B-1 and that certain
Loan Agreement, dated the date hereof, between Borrower and Lender (as the same
may be amended, restated, replaced, supplemented or otherwise modified from time
to time, the "LOAN AGREEMENT"). All capitalized terms not defined herein shall
have the respective meanings set forth in the Loan Agreement.
ARTICLE 1: PAYMENT TERMS
Borrower agrees to pay the principal sum of this Promissory Note B-1
and interest on the unpaid principal sum of this Promissory Note B-1 from time
to time outstanding at the rates and at the times specified in Article 2 of the
Loan Agreement and the outstanding balance of the principal sum of this
Promissory Note B-1 and all accrued and unpaid interest thereon shall be due and
payable on the Maturity Date.
ARTICLE 2: DEFAULT AND ACCELERATION
The Debt shall without notice become immediately due and payable at the
option of Lender if any payment required in this Promissory Note B-1 is not paid
on or prior to the date when due or if not paid on the Maturity Date or on the
happening of any other Event of Default.
ARTICLE 3: LOAN DOCUMENTS
This Promissory Note B-1 is secured by the Mortgages and the other Loan
Documents. All of the terms, covenants and conditions contained in the Loan
Agreement, the Mortgages and the other Loan Documents are hereby made part of
this Promissory Note B-1 to the same extent and with the same force as if they
were fully set forth herein. In the event of a conflict or inconsistency between
the terms of this Promissory Note B-1 and the Loan Agreement, the terms and
provisions of the Loan Agreement shall govern.
ARTICLE 4: SAVINGS CLAUSE
Notwithstanding anything to the contrary, (a) all agreements and
communications between Borrower and Lender are hereby and shall automatically be
limited so that, after taking
into account all amounts deemed interest, the interest contracted for, charged
or received by Lender shall never exceed the Maximum Legal Rate, (b) in
calculating whether any interest exceeds the Maximum Legal Rate, all such
interest shall be amortized, prorated, allocated and spread over the full amount
and term of all principal indebtedness of Borrower to Lender and (c) if through
any contingency or event Lender receives or is deemed to receive interest in
excess of the Maximum Legal Rate, any such excess shall be deemed to have been
applied toward payment of the principal of any and all then outstanding
indebtedness of Borrower to Lender.
ARTICLE 5: NO ORAL CHANGE
This Promissory Note B-1 may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.
ARTICLE 6: WAIVERS
Borrower and all others who may become liable for the payment of all or
any part of the Debt do hereby severally waive presentment and demand for
payment, notice of dishonor, notice of intention to accelerate, notice of
acceleration, protest and notice of protest and non-payment and all other
notices of any kind. No release of any security for the Debt or extension of
time for payment of this Promissory Note B-1 or any installment hereof, and no
alteration, amendment or waiver of any provision of this Promissory Note B-1,
the Loan Agreement or the other Loan Documents made by agreement between Lender
or any other Person shall release, modify, amend, waive, extend, change,
discharge, terminate or affect the liability of Borrower, and any other Person
who may become liable for the payment of all or any part of the Debt, under this
Promissory Note B-1, the Loan Agreement or the other Loan Documents. No notice
to or demand on Borrower shall be deemed to be a waiver of the obligation of
Borrower or of the right of Lender to take further action without further notice
or demand as provided for in this Promissory Note B-1, the Loan Agreement or the
other Loan Documents. If Borrower is a partnership, the agreements herein
contained shall remain in force and be applicable, notwithstanding any changes
in the individuals or entities comprising the partnership, and the term
"BORROWER," as used herein, shall include any alternate or successor
partnership, but any predecessor partnership and their partners shall not
thereby be released from any liability. If Borrower is a corporation, the
agreements contained herein shall remain in full force and be applicable
notwithstanding any changes in the shareholders comprising, or the officers and
directors relating to, the corporation, and the term "BORROWER" as used herein,
shall include any alternative or successor corporation, but any predecessor
corporation shall not be relieved of liability hereunder. If any Borrower is a
limited liability company, the agreements herein contained shall remain in force
and be applicable, notwithstanding any changes in the members comprising the
limited liability company, and the term "BORROWER" as used herein, shall include
any alternate or successor limited liability company, but any predecessor
limited liability company and their members shall not thereby be released from
any liability. Nothing in the foregoing three sentences shall be construed as a
consent to, or a waiver of, any prohibition or restriction on transfers of
interests in such partnership, corporation or limited liability company, as
applicable, which may be set forth in the Loan Agreement or any other Loan
Document.
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ARTICLE 7: TRANSFER
Upon the transfer of this Promissory Note B-1, Borrower hereby waiving
notice of any such transfer, Lender may deliver all the collateral mortgaged,
granted, pledged or assigned pursuant to the Loan Documents, or any part
thereof, to the transferee who shall thereupon become vested with all the rights
herein or under applicable law given to Lender with respect thereto, and Lender
shall thereafter forever be relieved and fully discharged from any liability or
responsibility in the matter; but Lender shall retain all rights hereby given to
it with respect to any liabilities and the collateral not so transferred.
ARTICLE 8: EXCULPATION
The provisions of Section 9.4 of the Loan Agreement are hereby
incorporated by reference into this Promissory Note B-1 to the same extent and
with the same force as if fully set forth herein.
ARTICLE 9: GOVERNING LAW
This Promissory Note B-1 shall be governed in accordance with the terms
and provisions of Section 10.3 of the Loan Agreement.
ARTICLE 10: NOTICES
All notices or other written communications hereunder shall be
delivered in accordance with Section 10.6 of the Loan Agreement.
[NO FURTHER TEXT ON THIS PAGE]
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IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note B-1
as of the day and year first above written.
BRIARCLIFF NURSING AND REHABILITATION CENTER, LP
By: Briarcliff Nursing and Rehabilitation Center
GP, LLC, its general partner
CALIFORNIA SECURED RESOURCES, LLC
CAREHOUSE HEALTHCARE CENTER, LLC
CLAIRMONT BEAUMONT, LP
By: Clairmont Beaumont GP, LLC, its general partner
CLAIRMONT LONGVIEW, LP
By: Clairmont Longview GP, LLC, its general partner
COLONIAL NEW BRAUNFELS CARE CENTER, LP
By: Colonial New Braunfels GP, LLC, its general
partner
COLONIAL TYLER CARE CENTER, LP
By: Colonial Tyler GP, LLC, its general partner
COMANCHE NURSING CENTER, LP
By: Comanche Nursing Center GP, LLC, its general
partner
CORONADO NURSING CENTER, LP
By: Coronado Nursing Center GP, LLC, its general
partner
DEVONSHIRE CARE CENTER, LLC
FLATONIA OAK MANOR, LP
By: Flatonia Oak Manor GP, LLC, its general partner
FOUNTAIN CARE CENTER, LLC
FOUNTAIN SENIOR ASSISTED LIVING, LLC
GUADALUPE VALLEY NURSING CENTER, LP
By: Guadalupe Valley Nursing Center GP, LLC, its
general partner
HALLETTSVILLE REHABILITATION AND NURSING CENTER, LP
By: Hallettsville Rehabilitation GP, LLC, its
general partner
HOSPITALITY NURSING AND REHABILITATION CENTER, LP
By: Hospitality Nursing GP, LLC, its general partner
LIVE OAK NURSING CENTER, LP
By: Live Oak Nursing Center GP, LLC, its general
partner
MONUMENT REHABILITATION AND NURSING CENTER, LP
By: Monument Rehabilitation GP, LLC, its general
partner
OAK CREST NURSING CENTER, LP
By: Oak Crest Nursing Center GP, LLC, its general
partner
OAKLAND MANOR NURSING CENTER, LP
By: Oakland Manor GP, LLC, its general partner
SHG SECURED RESOURCES, LP
By: Secured Resource Management GP, LLC, its
general partner
SOUTHWOOD CARE CENTER, LP
By: Southwood Care Center GP, LLC, its general
partner
SPRING SENIOR ASSISTED LIVING, LLC
TEXAS CITYVIEW CARE CENTER, LP
By: Texas Cityview Care Center GP, LLC, its general
partner
TEXAS HERITAGE OAKS NURSING AND REHABILITATION
CENTER, LP
By: Texas Heritage Oaks Nursing and Rehabilitation
Center GP, LLC, its general partner
TEXAS SECURED RESOURCES, LLC
THE CLAIRMONT TYLER, LP
By: The Clairmont Tyler GP, LLC, its general partner
THE EARLWOOD, LLC
TOWN AND COUNTRY MANOR, LP
By: Town and Country Manor GP, LLC, its general
partner
VALLEY HEALTHCARE CENTER, LLC
VILLA MARIA HEALTHCARE CENTER, LLC
WEST SIDE CAMPUS OF CARE, LP
By: West Side Campus of Care GP, LLC, its general
partner
WILLOW CREEK HEALTHCARE CENTER, LLC
By: \s\ Roland G. Rapp
---------------------------------------
Name: Roland G. Rapp
Title: Secretary
SCHEDULE A
PROPERTIES AND BORROWERS
BORROWERS
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TYPE OF
INDIVIDUAL PROPERTIES FACILITY COUNTY STATE OPERATOR FEE OWNERS MASTER LESSEE
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1. Carehouse Care Center SNF Orange CA Carehouse SHG Secured California Secured
Healthcare Center, Resources, LP Resources, LLC
LLC
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2. Devonshire Care Center SNF Riverside CA Devonshire Care SHG Secured California Secured
Center, LLC Resources, LP Resources, LLC
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3. Fountain Care Center SNF Orange CA Fountain Care SHG Secured California Secured
Center, LLC Resources, LP Resources, LLC
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4. Fountain Senior Assisted ALF Orange CA Fountain Senior SHG Secured California Secured
Living Assisted Living, Resources, LP Resources, LLC
LLC
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5. Spring Assisted Living ALF Los Angeles CA Spring Senior SHG Secured California Secured
and Retirement Assisted Living, Resources, LP Resources, LLC
LLC
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6. Earlwood Care Center SNF Los Angeles CA The Earlwood, LLC SHG Secured California Secured
Resources, LP Resources, LLC
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7. Valley Health Care Center SNF Fresno CA Valley Healthcare SHG Secured California Secured
Center, LLC Resources, LP Resources, LLC
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8. Villa Maria Care Center SNF Santa Barbara CA Villa Maria SHG Secured California Secured
Healthcare Center, Resources, LP Resources, LLC
LLC
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9. Willow Creek Health Care SNF Fresno CA Willow Creek SHG Secured California Secured
Center Healthcare Center, Resources, LP Resources, LLC
LLC
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10. Briarcliff Nursing and SNF Hidalgo TX Briarcliff Nursing SHG Secured Texas Secured
Rehabilitation Center and Rehabilitation Resources, LP Resources, LLC
Center, LP
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11. Clairmont Nursing Home SNF Jefferson TX Clairmont SHG Secured Texas Secured
(Beaumont) Beaumont, LP Resources, LP Resources, LLC
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12. Clairmont Nursing Home SNF Gregg TX Clairmont SHG Secured Texas Secured
(Longview) Longview, LP Resources, LP Resources, LLC
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13. Colonial Manor Care SNF Comal TX Colonial New SHG Secured Texas Secured
Center Braunfels Care Resources, LP Resources, LLC
Center, LP
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14. Colonial Manor (Tyler) SNF Smith TX Colonial Tyler SHG Secured Texas Secured
Care Center, LP Resources, LP Resources, LLC
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BORROWERS
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TYPE OF
INDIVIDUAL PROPERTIES FACILITY COUNTY STATE OPERATOR FEE OWNERS MASTER LESSEE
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15. Comanche Trail Nursing SNF Howard TX Comanche Nursing SHG Secured Texas Secured
Center Center, LP Resources, LP Resources, LLC
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16. Coronado Nursing Center SNF Taylor TX Coronado Nursing SHG Secured Texas Secured
Center, LP Resources, LP Resources, LLC
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17. Oak Manor Nursing Center SNF Fayetee TX Flatonia Oak SHG Secured Texas Secured
Manor, LP Resources, LP Resources, LLC
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18. Guadalupe Valley Nursing SNF Guadalupe TX Guadalupe Valley SHG Secured Texas Secured
Center Nursing Center, LP Resources, LP Resources, LLC
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19. Hallettsville Nursing SNF Lavaca TX Hallettsville SHG Secured Texas Secured
Center Rehabilitation and Resources, LP Resources, LLC
Nursing Center, LP
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20. Lubbock Hospitality House SNF Lubbock TX Hospitality SHG Secured Texas Secured
Nursing and Resources, LP Resources, LLC
Rehabilitation
Center, LP
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21. Live Oak Nursing Center SNF Live Oak TX Live Oak Nursing SHG Secured Texas Secured
Center, LP Resources, LP Resources, LLC
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22. Monument Hill Nursing SNF Fayette TX Monument SHG Secured Texas Secured
Center Rehabilitation and Resources, LP Resources, LLC
Nursing Center, LP
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23. Oak Crest Nursing Center SNF Aransas TX Oak Crest Nursing SHG Secured Texas Secured
Center, LP Resources, LP Resources, LLC
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24. Oakland Manor Nursing SNF Lee TX Oakland Manor SHG Secured Texas Secured
Center Nursing Center, LP Resources, LP Resources, LLC
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25. Southwood Care Center SNF Travis TX Southwood Care SHG Secured Texas Secured
Center, LP Resources, LP Resources, LLC
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26. Cityview Care Center SNF Tarrant TX Texas Cityview SHG Secured Texas Secured
Care Center, LP Resources, LP Resources, LLC
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27. Heritage Oaks Nursing SNF Lubbock TX Texas Heritage SHG Secured Texas Secured
and Rehabilitation Center Oaks Nursing and Resources, LP Resources, LLC
Rehabilitation
Center, LP
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28. Clairmont Nursing Home SNF Smith TX The Clairmont SHG Secured Texas Secured
(Tyler) Tyler, LP Resources, LP Resources, LLC
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29. Town & Country Manor SNF Kendall TX Town and Country SHG Secured Texas Secured
Manor, LP Resources, LP Resources, LLC
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30. West Side Campus of Care SNF Tarrant TX West Side Campus SHG Secured Texas Secured
of Care, LP Resources, LP Resources, LLC
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