Exhibit 10.20
REPAYMENT AGREEMENT
This Repayment Agreement by and among Lexington Healthcare Group, Inc. (the
"Company"), a Delaware Corporation, Lexington House, Inc., ("L.H."), a
Connecticut Corporation and Xxxx Xxxxxxxx, individually is dated May 11, 1997.
WHEREAS, Lexington House, Inc., which is owned 100% by Xx. Xxxxxxxx is
indebted to the Company in the aggregate amount of $520,393 plus accrued as of
April 31, 1997, a portion of which is represented by a promissory note dated
June 30, 1996 (the "NOTE"); and
WHEREAS, the Company owes Xx. Xxxxxxxx an aggregate of $165,693; and
WHEREAS, Xx. Xxxxxxxx and his wife own 100% of the capital stock of Samir
and of Lexington House, Inc.; and
WHEREAS, the parties desire to establish a payment plan whereby the Company
can receive assurance of its abilities to collect the amounts owed to it.
NOW, THEREFORE, in consideration of the mutual promises herein contained
and other good and valuable consideration, the receipt and sufficiency of which
is acknowledged, the parties agree as follows:
1. Xx. Xxxxxxxx shall assign the Company's obligation owed to him
individually in the aggregate amount of $165,693 plus any accrued interest, as
of the date hereof, to LH, who shall apply such amounts towards repayment of the
amount owed to the Company, by reducing LH's obligation to the Company. The
payments shall first be applied to accrued interest and then principal.
2. Xx. Xxxxxxxx shall pay $100,000 to Xxxxx Xxxxxxx on behalf of the
Company which payment will be applied towards the amounts owed to the Company,
which payment shall first be applied to accrued interest and then principal.
3. LH agrees to pay $10,000 per month to the Company towards the amount
owed to the Company, which payments shall first be applied to accrued interest
and then principal.
4. Samir agrees that commencing in January 1998, the Company will not be
obligated to pay its monthly rental owed to Samir on its executive offices (the
"Executive Offices") and that instead such amounts will be applied towards the
amounts owed to the Company by LH.
5. Xx. Xxxxxxxx agrees to assist the Company in perfecting its security
interest in the building housing the Executive Offices by signing a UCC-1
Financing Statement and any other necessary documents.
6. This Agreement may not be modified, amended, changed or terminated
except by
a writing signed by the party sought to be charged therewith. This Agreement
shall be governed and construed under the laws of the State of New York
applicable to agreements made and to be performed solely within such state.
This Agreement contains the entire understanding of the parties on the subject
matter hereof; all prior discussions, negotiations and understandings are merged
herein and there are no warranties, representations or understandings regarding
the subject matter hereof which are not set forth herein.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
/s/ Xxxx Xxxxxxxx
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Xxxx Xxxxxxxx, individually
Lexington Healthcare Group, Inc.
/s/ Xxxxx Xxxxxx
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By: Xxxxx Xxxxxx
Lexington House, Inc.
/s/ Xxxx Xxxxxxxx
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By: Xxxx Xxxxxxxx
Samir Realty
/s/ Xxxx Xxxxxxxx
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By: Xxxx Xxxxxxxx
