Six Peak IC Weekly Meeting

• The meeting reviewed progress and blockers on the Francis transaction, focusing on HUD authorization letters and the joint venture agreement (JVA) with MRK.
• HUD authorizations (the "2030 letters") are the critical remaining closing item; the team estimates roughly two weeks from receipt of security keys to obtain the letters and be ready to close.
• The security key delivery failed on two occasions, necessitating a workaround using a completed form submitted by Steven to bypass the failed delivery process.
• The JVA with MRK is the next likely bottleneck and is awaiting markups from MRK’s in-house counsel, Kyle, following a recent legal call.
• The central unresolved legal dispute concerns treatment of disallowed costs: MRK initially requires Six Peak to reimburse the partnership for any disallowed costs found in a later audit, while Six Peak argues disallowed costs should be shared because MRK had full knowledge during underwriting.
• Internal disagreement within MRK between Kathy (supporting MRK’s reimbursement position) and Chris Aiello (disagreeing with that stance) was reported, leaving allocation mechanics and reimbursement at an eventual liquidity event unresolved.

• ◻
  Steven Cooney Steven Cooney will message Chris Aiello to let him know the team will be around.
  → To-Dos
• ◻
  MRK’s in-house counsel, Kyle MRK’s in-house counsel, Kyle, will mark up the JVA following last week’s legal call.
  → To-Dos

None.