HOMETOWN AMERICA, L.L.C. LOAN TO CP LIMITED PARTNERSHIP CHATEAU COMMUNITIES, INC. TERM SHEET June 26, 2003Confidential - • June 27th, 2003 • Chateau Communities Inc • Real estate investment trusts
THIS TERM SHEET IS INTENDED AS A PROPOSAL BY HOMETOWN AMERICA, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY ("HOMETOWN") TO MAKE A LOAN (THE "LOAN") TO CP LIMITED PARTNERSHIP, A MARYLAND LIMITED PARTNERSHIP, AND CERTAIN OF ITS SUBSIDIARIES (COLLECTIVELY, "BORROWER"), CHATEAU COMMUNITIES, INC., A MARYLAND CORPORATION, AND ROC COMMUNITIES, INC., A MARYLAND CORPORATION (COLLECTIVELY, THE "GUARANTORS") AND NOT A COMMITMENT TO LEND. NO PARTY WILL HAVE ANY COMMITMENT OR OBLIGATION HEREUNDER UNLESS AND UNTIL BORROWER, THE GUARANTORS AND LENDER (AS DEFINED HEREIN) COUNTERSIGN THIS TERM SHEET ON BEHALF OF IT AND ITS RESPECTIVE SUBSIDIARIES AND AFFILIATES. THIS TERM SHEET DOES NOT PURPORT TO SUMMARIZE ALL OF THE TERMS AND PROVISIONS TO BE MUTUALLY AGREED UPON AND CONTAINED IN DEFINITIVE DOCUMENTATION FOR THIS TRANSACTION AS DESCRIBED BELOW.
PRIVILEGED AND CONFIDENTIAL CHATEAU COMMUNITIES, INC. 6160 SOUTH SYRACUSE WAY GREENWOOD VILLAGE, COLORADO 80111 (303) 874-3320 Hometown America, L.L.C. 150 North Wacker Drive, Suite 800 Chicago, Illinois 60606 Attention: Thomas J. Coorsh June 26, 2003...Chateau Communities Inc • June 27th, 2003 • Real estate investment trusts
We refer to the Agreement and Plan of Merger (the "MERGER AGREEMENT"), dated as of May 29, 2003, by and among Hometown America, L.L.C. ("PURCHASER"), Hometown America Holdings, L.L.C. ("PARENT," and with Purchaser, "HOMETOWN"), CP Limited Partnership ("CHATEAU OP"), Chateau Communities, Inc. (the "REIT") and ROC Communities, Inc. ("ROC," and with Chateau OP and the REIT, "CHATEAU"). Terms used but not defined in this letter agreement have the respective meanings ascribed to such terms in the Merger Agreement (including the Disclosure Letter).
