Exhibit 10.7

 

FOURTH AMENDMENT TO
AMENDED AND RESTATED MASTER LEASE AGREEMENT
(LEASE NO. 4)

 

THIS FOURTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO.
4) (this “Amendment”) is made and entered into as of August 31, 2012 by and
among each of the parties identified on the signature pages hereof as a landlord
(collectively, “Landlord”) and each of the parties identified on the signature
pages hereof as a tenant (jointly and severally, “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the terms of that certain Amended and Restated Master Lease
Agreement (Lease No. 4), dated as of August 4, 2009, as amended by that certain
First Amendment to Amended and Restated Master Lease Agreement (Lease No. 4),
dated as of October 1, 2009, that certain Partial Termination of and Second
Amendment to Amended and Restated Master Lease Agreement (Lease No. 4), dated as
of May 1, 2011, and that certain Third Amendment to Amended and Restated Master
Lease Agreement (Lease No. 4), dated as of June 20, 2011 (as so amended,
“Amended Lease No. 4”), Landlord leases to Tenant, and Tenant leases from
Landlord, the Leased Property (this and other capitalized terms used but not
otherwise defined herein having the meanings given such terms in Amended Lease
No. 4), all as more particularly described in Amended Lease No. 4; and

 

WHEREAS, simultaneously herewith, SNH/LTA Properties GA LLC (“SNH/LTA GA”) has
acquired the real property and related improvements comprising the senior living
facility known as Savannah Square and located at One Savannah Square Drive,
Savannah, GA 31406, as more particularly described on Exhibit A-29 attached
hereto (the “Savannah Square Property”) and SNH/LTA Properties Trust (“SNH/LTA
Trust”) has acquired the real property and related improvements comprising:
(i) the senior living facility known as Remington Club I & II, and located at
16925 and 16916 Hierba Drive, San Diego, CA 92128, as more particularly
described on Exhibit A-28 attached hereto (the “Remington Property”); and
(ii) the senior living facility known as Morningside of Bellgrade and located at
2800 Polo Parkway, Midlothian, VA 23113, as more particularly described on
Exhibit A-30 attached hereto (the “Bellgrade Property” and together with the
Savannah Square Property and the Remington Property, the “Acquired Properties”);
and

 

WHEREAS, SNH/LTA GA wishes to lease the Savannah Square Property to Five Star
Quality Care Trust (“FSQC Trust”) and FSQC Trust wishes to lease the Savannah
Square Property from SNH/LTA GA; and

 

WHEREAS, SNH/LTA Trust wishes to lease the Remington Property and the Bellgrade
Property to FSQC Trust and FSQC Trust wishes to lease the Remington Property and
the Bellgrade Property from SNH/LTA Trust; and

 

WHEREAS, SNH/LTA GA, SNH/LTA Trust and the other entities comprising Landlord,
and FSQC Trust and the other entities comprising Tenant, wish to amend Amended
Lease No. 4 to include the Acquired Properties;

 

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NOW, THEREFORE, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the mutual receipt and legal sufficiency
of which are hereby acknowledged, Landlord and Tenant hereby agree that,
effective as of the date hereof, Amended Lease No. 4 is hereby amended as
follows:

 

1.                                      Definition of Minimum Rent.  The defined
term “Minimum Rent” set forth in Section 1.68 of Amended Lease No. 4 is deleted
in its entirety and replaced with the following:

 

“Minimum Rent”  shall mean the sum of Thirty-Four Million Two Hundred Fifty-Four
Thousand Two Hundred Sixty Nine and 56/100 Dollars ($34,254,269.56) per annum.

 

2.                                      Leased Property.  Section 2.1 of Amended
Lease No. 4 is amended by deleting subsection (a) therefrom in its entirety and
replacing it with the following:

 

(a)                                 those certain tracts, pieces and parcels of
land as more particularly described on Exhibits A-1 through A-30 attached hereto
and made a part hereof (the “Land”);

 

3.                                      Arbitration.  Article 22 of Amended
Lease No. 1 is deleted in its entirety and replaced with the following:

 

ARTICLE 22

 

ARBITRATION

 

(a)                                 Any disputes, claims or controversies
between or among the parties hereto (i) arising out of or relating to this
Agreement, or (ii) brought by or on behalf of any shareholder of the parties
hereto (which, for purposes of this Article 22, shall mean any shareholder of
record or any beneficial owner of shares of the parties hereto, or any former
shareholder of record or beneficial owner of shares of the parties hereto),
either on his, her or its own behalf, on behalf of the parties hereto or on
behalf of any series or class of shares of the parties hereto or shareholders of
the parties hereto against the parties hereto or any trustee, director, officer,
manager (including Reit Management & Research LLC or its successor), agent or
employee of the parties hereto, including disputes, claims or controversies
relating to the meaning, interpretation, effect, validity, performance or
enforcement of this Agreement, including this arbitration agreement, the
declaration of trust, limited liability company agreement, partnership agreement
or analogous governing instruments, as applicable, of the parties hereto, or the
bylaws of the parties hereto (all of which are referred to as “Disputes”), or
relating in any way to such a Dispute or Disputes, shall on the demand of any
party to such Dispute be resolved through binding and final arbitration in
accordance with the Commercial Arbitration Rules (the “Rules”) of the American
Arbitration Association (“AAA”) then in effect, except as those Rules may be
modified in this Article 22.  For the avoidance of doubt, and not as a
limitation, Disputes are intended to include derivative actions against
trustees, directors, officers or managers of the parties hereto and class
actions by a shareholder against those individuals or entities and the parties
hereto.  For the

 

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avoidance of doubt, a Dispute shall include a Dispute made derivatively on
behalf of one party against another party.

 

(b)                                 There shall be three arbitrators.  If there
are only two parties to the Dispute (with, for purposes of this Article 22, any
and all parties involved in the Dispute and owned by the same ultimate parent
entity treated as one party), each party shall select one arbitrator within 15
days after receipt by respondent of a copy of the demand for arbitration.  Such
arbitrators may be affiliated or interested persons of such parties.  If either
party fails to timely select an arbitrator, the other party to the Dispute shall
select the second arbitrator who shall be neutral and impartial and shall not be
affiliated with or an interested person of either party. If there are more than
two parties to the Dispute, all claimants, on the one hand, and all respondents,
on the other hand, shall each select, by the vote of a majority of the claimants
or the respondents, as the case may be, one arbitrator. Such arbitrators may be
affiliated or interested persons of the claimants or the respondents, as the
case may be.  If either all claimants or all respondents fail to timely select
an arbitrator then such arbitrator (who shall be neutral, impartial and
unaffiliated with any party) shall be appointed by the AAA.  The two arbitrators
so appointed shall jointly appoint the third and presiding arbitrator (who shall
be neutral, impartial and unaffiliated with any party) within 15 days of the
appointment of the second arbitrator.  If the third arbitrator has not been
appointed within the time limit specified herein, then the AAA shall provide a
list of proposed arbitrators in accordance with the Rules, and the arbitrator
shall be appointed by the AAA in accordance with a listing, striking and ranking
procedure, with each party having a limited number of strikes, excluding strikes
for cause.

 

(c)                                  The place of arbitration shall be Boston,
Massachusetts unless otherwise agreed by the parties.

 

(d)                                 There shall be only limited documentary
discovery of documents directly related to the issues in dispute, as may be
ordered by the arbitrators.

 

(e)                                  In rendering an award or decision (the
“Award”), the arbitrators shall be required to follow the laws of the
Commonwealth of Massachusetts.  Any arbitration proceedings or Award rendered
hereunder and the validity, effect and interpretation of this arbitration
agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §1 et seq. 
The Award shall be in writing and may, but shall not be required to, briefly
state the findings of fact and conclusions of law on which it is based.

 

(f)                                   Except to the extent expressly provided by
Article 22 or as otherwise agreed by the parties, each party involved in a
Dispute shall bear its own costs and expenses (including attorneys’ fees), and
the arbitrators shall not render an award that would include shifting of any
such costs or expenses (including attorneys’ fees) or, in a derivative case or
class action, award any portion of Assignor’s or Assignee’s award to the
claimant or the claimant’s attorneys.  Except to the extent otherwise agreed by
the parties, each party (or, if there are more than two parties to the Dispute,
all claimants, on the one hand, and all respondents, on the other hand,
respectively) shall bear the costs and expenses of its (or their) selected
arbitrator and the parties (or, if there are more than two parties to the
Dispute, all claimants, on the one hand, and all respondents, on the other hand)
shall equally bear the costs and expenses of the third appointed arbitrator.

 

3

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(g)                                  An Award shall be final and binding upon
the parties thereto and shall be the sole and exclusive remedy between such
parties relating to the Dispute, including any claims, counterclaims, issues or
accounting presented to the arbitrators.  Judgment upon the Award may be entered
in any court having jurisdiction.  To the fullest extent permitted by law, no
application or appeal to any court of competent jurisdiction may be made in
connection with any question of law arising in the course of arbitration or with
respect to any award made except for actions relating to enforcement of this
agreement to arbitrate or any arbitral award issued hereunder and except for
actions seeking interim or other provisional relief in aid of arbitration
proceedings in any court of competent jurisdiction.

 

(h)                                 Any monetary award shall be made and payable
in U.S. dollars free of any tax, deduction or offset.  Each party against which
the Award assesses a monetary obligation shall pay that obligation on or before
the 30th day following the date of the Award or such other date as the Award may
provide.

 

(i)                                     This Article 22 is intended to benefit
and be enforceable by the shareholders, trustees, directors, officers, managers
(including Reit Management & Research LLC or its successor), agents or employees
of any party and the parties and shall be binding on the shareholders of any
party and the parties, as applicable, and shall be in addition to, and not in
substitution for, any other rights to indemnification or contribution that such
individuals or entities may have by contract or otherwise.

 

4.                                      Schedule 1.  Schedule 1 to Amended Lease
No. 4 is deleted in its entirety and replaced with Schedule 1 attached hereto.

 

5.                                      Exhibit A.  Exhibit A to Amended Lease
No. 4 is amended by adding Exhibits A-28 through A-30 attached hereto
immediately following Exhibit A-27 to Amended Lease No. 4.

 

6.                                      Ratification.  As amended hereby,
Amended Lease No. 4 is hereby ratified and confirmed.

 

[Remainder of page intentionally left blank; signature pages follow]

 

4

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IN WITNESS WHEREOF, the parties have executed this Amendment as a sealed
instrument as of the date above first written.

 

 

LANDLORD:

 

 

 

SNH SOMERFORD PROPERTIES TRUST

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

 

 

SNH NS PROPERTIES TRUST

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

 

 

SNH/LTA PROPERTIES TRUST

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

 

 

SPTIHS PROPERTIES TRUST

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

 

 

SNH CHS PROPERTIES TRUST

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

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SNH/LTA PROPERTIES GA LLC

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

CCOP SENIOR LIVING LLC

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

 

 

 

 

TENANT:

 

 

 

 

 

 

 

FIVE STAR QUALITY CARE TRUST

 

 

 

 

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

Bruce J. Mackey Jr.

 

 

President

 

 

 

 

 

 

 

FIVE STAR QUALITY CARE -

 

NS TENANT, LLC

 

 

 

 

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

Bruce J. Mackey Jr.

 

 

President

 

 

 

 

 

 

 

FS TENANT HOLDING COMPANY TRUST

 

 

 

 

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

Bruce J. Mackey Jr.

 

 

President

 

6

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SCHEDULE 1

 

PROPERTY-SPECIFIC INFORMATION

 

Exhibit

 

Property Address

 

Base Gross Revenues
(Calendar Year)

 

Base Gross Revenues
(Dollar Amount)

 

Commencement
Date

 

Interest
Rate

 

A-1

 

Somerford Place - Stockton

3530 Deer Park Drive

Stockton, CA 95219

 

2009

 

N/A

 

03/31/2008

 

8%

 

A-2

 

La Villa Grande Care Center

2501 Little Bookcliff Drive

Grand Junction, CO 81501

 

2005

 

$

5,205,189

 

12/31/2001

 

10%

 

A-3

 

Court at Palm-Aire

2701 North Course Drive

Pompano Beach, FL 33069

 

2007

 

$

12,992,201

 

09/01/2006

 

8.25%

 

A-4

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-5

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-6

 

Northlake Gardens

1300 Montreal Road

Tucker, GA 30084

 

2006

 

$

2,240,421

 

06/03/2005

 

9%

 

A-7

 

Westridge Quality

Care & Rehabilitation

600 Manor Drive

Clarinda, IA 51632

 

2005

 

$

2,933,641

 

12/31/2001

 

10%

 

A-8

 

Brenden Gardens

900 Southwind Road

Springfield, IL 62703

 

2007

 

$

1,802,414

 

09/01/2006

 

8.25%

 

A-9

 

Overland Park Place

6555 West 75th Street

Overland Park, KS 66204

 

2005

 

$

2,539,735

 

10/25/2002

 

10%

 

A-10

 

Morningside of Mayfield

1517 West Broadway

Mayfield, KY 42066

 

2006

 

$

1,197,256

 

11/19/2004

 

9%

 

A-11

 

The Neighborhood of Somerset

100 Neighborly Drive

Somerset, KY 42503

 

2007

 

$

1,893,629

 

11/05/2006

 

8.25%

 

A-12

 

Centennial Park Retirement Village

510 Centennial Circle

North Platte, NE 69101

 

2009

 

N/A

 

02/17/2008

 

8%

 

A-13

 

Westgate Assisted Living

3030 South 80th Street

Omaha, NE 68124

 

2006

 

$

2,210,173

 

06/03/2005

 

9%

 

A-14

 

NewSeasons at Cherry Hill

490 Cooper Landing Road

Cherry Hill, NJ 08002*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-15

 

NewSeasons at Mount Arlington

2 Hillside Drive

Mount Arlington, NJ 07856*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-16

 

NewSeasons at New Britain

800 Manor Drive

Chalfont, PA 18914*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-17

 

NewSeasons at Clarks Summit

950 Morgan Highway

Clarks Summit, PA 18411*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-18

 

NewSeasons at Exton

600 North Pottstown Pike

Exton, PA 19341*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

 

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Exhibit

 

Property Address

 

Base Gross Revenues
(Calendar Year)

 

Base Gross Revenues
(Dollar Amount)

 

Commencement
Date

 

Interest
Rate

 

A-19

 

NewSeasons at Glen Mills

(Concordville)

242 Baltimore Pike

Glen Mills, PA 19342*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-20

 

NewSeasons at Tiffany Court

700 Northampton Street

Kingston, PA 18704*

 

N/A

 

N/A

 

12/29/2003

 

10%

 

A-21

 

Morningside of Greenwood

116 Enterprise Court

Greenwood, SC 29649

 

2006

 

$

1,322,836

 

06/03/2005

 

9%

 

A-22

 

Montevista at Coronado

1575 Belvidere Street

El Paso, TX 79912

 

2005

 

$

8,149,609

 

01/11/2002

 

10%

 

A-23

 

Dominion Village at Poquoson

531 Wythe Creek Road

Poquoson, VA 23662

 

2005

 

$

1,359,832

 

5/30/2003

 

10%

 

A-24

 

Morningside in the West End

3000 Skipwith Road

Richmond, VA 23294

 

2006

 

$

3,792,363

 

11/19/2004

 

9%

 

A-25

 

Worland Healthcare &

Rehabilitation Center

1901 Howell Avenue

Worland, WY 82401

 

2005

 

$

3,756,035

 

12/31/2001

 

10%

 

A-26

 

Brandon Woods at Alvamar

1501 Inverness Drive

Lawrence, KS 66047

 

2010

 

N/A

 

10/01/2009

 

8.75%

 

A-27

 

McCarthy Court II

1325 McCarthy Boulevard

New Bern, North Carolina

 

2012

 

N/A

 

06/20/2011

 

7.5%

 

A-28

 

Remington Club I & II

16925 and 16916 Hierba Drive

San Diego, CA 92128

 

2005

 

$

20,853,252

 

01/11/2002

 

10.0%

 

A-29

 

Savannah Square

One Savannah Square Drive

Savannah, GA 31406

 

2007

 

$

6,931,887

 

10/01/2006

 

9.0%

 

A-30

 

Morningside of Bellgrade

2800 Polo Parkway

Midlothian, VA 23113

 

2006

 

$

4,992,156

 

11/19/2004

 

9.0%

 

 

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“*” indicates New Seasons Property

 

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EXHIBIT A-28

 

Remington Club I & II

16925 and 16916 Hierba Drive

San Diego, CA 92128

 

(See attached copy.)

 

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EXHIBIT A-29

 

Savannah Square

One Savannah Square Drive

Savannah, GA 31406

 

(See attached copy.)

 

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[g199841km03i011.jpg]

 

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EXHIBIT A-30

 

Morningside of Bellgrade

2800 Polo Parkway

Midlothian, VA 23113

 

(See attached copy.)

 

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[g199841km03i012.jpg]

 

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