Other Debt Related Parties – Other debt due at December 31, 2015 and 2014 includes unsecured notes payable issued to entities controlled by the Company used to facilitate the acquisition of the nursing home properties. Principal Outstanding at Stated Face December 31, Property Amount 2015 2014 Rate Date Goodwill 13.0 Nursing $ $ %(1) June 30, Home Fixed 2017(2) Repaid Edwards on Redeemer January Health & 12.0% 20, Rehab 880,000 - 880,000 Fixed 2015 Providence of Sparta August Nursing 10.0% 1, Home 1,050,000 1,050,000 Fixed 2016(3) Providence of Greene Point 10.0% June 30, Center 1,125,000 1,150,000 Fixed 2017(4) Golden Years Manor Nursing 11.0% April 1, Home 1,650,000 1,650,000 Fixed 2016(5) $ $ (1)The interest rate on this note increased from 12% to 13% per annum effective January 1, 2015. (2)The subordinated note on Goodwill matured on July 1, 2015. Investors in the Goodwill note were entitled to an additional 5% equity in Goodwill Hunting, LLC every six months if the note is not paid when due. Effective December 31, 2015, all of the holders of the Goodwill subordinated note executed an Agreement Among Lenders pursuant to which they (i) waived all equity ratchets and (ii) extended the maturity date of their notes to June 30, 2017. In exchange, Goodwill Hunting LLC agreed to pay the investors a one-time premium equal to 5% of the principal amount of each individual note (approximately $64,000) as such time as the note is repaid. (3)The subordinated note on Sparta matured on August 1, 2015. Investors in the Sparta note are entitled to an additional 5% equity in Providence HR, LLC every six months if the note is not paid when due. The Company is
Other Debt – Related Parties Other debt due at December 31, 2015 and 2014 includes unsecured notes payable issued to entities controlled by the Company used to facilitate the acquisition of the nursing home properties. Principal Outstanding at Stated Face December 31, Property Amount 2015 2014 Rate Date Goodwill Nursing Home $ $ 13.0 %(1) Fixed June 30, 2017(2) Edwards Redeemer Health & Rehab 880,000 - 880,000 12.0% Fixed Repaid on January 20, 2015 Providence of Sparta Nursing Home 1,050,000 1,050,000 10.0% Fixed August 1, 2016(3) Providence of Greene Point Center 1,125,000 1,150,000 10.0% Fixed June 30, 2017(4) Golden Years Manor Nursing Home 1,650,000 1,650,000 11.0% Fixed April 1, 2016(5) $ $ (1)The interest rate on this note increased from 12% to 13% per annum effective January 1, 2015. (2)The subordinated note on Goodwill matured on July 1, 2015. Investors in the Goodwill note were entitled to an additional 5% equity in Goodwill Hunting, LLC every six months if the note is not paid when due. Effective December 31, 2015, all of the holders of the Goodwill subordinated note executed an Agreement Among Lenders pursuant to which they (i) waived all equity ratchets and (ii) extended the maturity date of their notes to June 30, 2017. In exchange, Goodwill Hunting LLC agreed to pay the investors a one-time premium equal to 5% of the principal amount of each individual note (approximately $64,000) as such time as the note is repaid. (3)The subordinated note on Sparta matured on August 1, 2015. Investors in the Sparta note are entitled to an additional 5% equity in Providence HR, LLC every six months if the note is not paid when due. The Company is
4-15-16-10k.docx