Exhibit 10.4

 

AMENDMENT NO. 2 TO MASTER CREDIT FACILITY AGREEMENT

 

THIS AMENDMENT NO. 2 TO MASTER CREDIT FACILITY AGREEMENT (this “Amendment”) is
made as of August 31, 2012 by and among (i) SNH FM FINANCING LLC, a Delaware
limited liability company (“Borrower”); (ii) CITIBANK, N.A., a national banking
association (“Lender”); and (iii) FANNIE MAE, a corporation duly organized and
existing under the Federal National Mortgage Association Charter Act, as
amended, 12 U.S.C. § 1716, et seq., and duly organized and existing under the
laws of the United States (together with its successors and assigns, “Fannie
Mae”).

 

RECITALS

 

A.            Borrower and Lender are parties to that certain Master Credit
Facility Agreement dated as of August 4, 2009, as modified by that certain
Amendment No. 1 to Master Credit Facility Agreement dated as of February 1, 2010
(as the same may be further amended, restated, modified or supplemented from
time to time, the “Master Agreement”).

 

B.            Pursuant to the Master Agreement, Lender provided term loans in
the aggregate principal amount of $512,934,000 to Borrower, comprised of a
$205,174,000 Variable Loan, and a $307,760,000 Fixed Loan.

 

C.            Immediately after the execution of the Master Agreement, the
Lender’s interests under the Master Agreement were assigned by the Lender to
Fannie Mae pursuant to that certain Assignment of Master Credit Facility
Agreement and Other Loan Documents dated as of August 4, 2009.

 

D.            Borrower has asked Fannie Mae and Lender to consent to the release
(the “Release”) of certain Mortgaged Properties set forth on Annex A attached
hereto (the “Released Mortgaged Properties”) from the Master Agreement.

 

E.            In connection with the Release, Borrower is making a payment to
Lender in the amount of $199,197,750.15 with $198,434,287.52 to be applied to
the Variable Loan and $763,462.63 to be applied to the Fixed Loan, so that as of
the date hereof, the principal amount Outstanding on the Variable Loan is zero
and the principal amount Outstanding on the Fixed Loan is $297,630,802.15.

 

F.             Borrower, Lender and Fannie Mae desire to amend the Master
Agreement to account for the Release.

 

G.            Fannie Mae, Lender and Borrower intend these Recitals to be a
material part of this Amendment.

 

NOW, THEREFORE, the parties hereto, in consideration of the mutual promises and
agreements set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby conclusively acknowledged, hereby
agree as follows:

 

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Section 1.              Capitalized Terms.  All capitalized terms used in this
Amendment which are not specifically defined herein shall have the respective
meanings set forth in the Master Agreement.

 

Section 2.              Amendments.

 

A.            Fannie Mae and Lender hereby consent to the Release of the
Released Mortgaged Properties so that from and after the date hereof, the
Mortgaged Properties will be as set forth in Annex B attached hereto.

 

B.            Schedule I; Minimum Rent Payments.  Schedule I of the Master
Agreement is hereby deleted and replaced in its entirety by Schedule I attached
hereto.

 

Section 3.              Operating Lease.  Pursuant to Section 8.21 of the Master
Agreement, Fannie Mae and Lender hereby consent to the Partial Termination of
and Amendment No. 2 to Amended and Restated Master Lease in the form annexed
hereto as Annex C.

 

Section 4.              Expansion Documents.  The following agreements are
hereby terminated and of no further force or effect:

 

A.            That certain Expansion and Security Agreement dated as of October
7, 2009 by and among Borrower, SNH FM Financing Trust and Fannie Mae relating to
the Released Mortgage Property known as HeartFields at Easton;

 

B.            That certain Expansion Guaranty by Senior Housing Properties Trust
(“Guarantor”) for the benefit of Fannie Mae dated as of October 7, 2009 relating
to the Released Mortgage Property known as HeartFields at Easton;

 

C.            That certain Expansion and Security Agreement dated as of
December 15, 2010 by and between Borrower and Fannie Mae relating to the
Released Mortgaged Property known as Gables at Winchester; and

 

D.            That certain Expansion Guaranty by Guarantor for the benefit of
Fannie Mae dated as of December 15, 2010 relating to the Released Mortgaged
Property known as Gables at Winchester.

 

Section 5.              Fees.  Borrower hereby absolutely and unconditionally
agrees to pay, or cause to be paid, to Lender and Fannie Mae the amount of any
fees, costs, charges or expenses, including attorneys’ fees and disbursements,
incurred by Lender and Fannie Mae in connection with this Amendment.

 

Section 6.              Full Force and Effect.  Except as expressly modified
hereby, the Master Agreement and all of the terms, conditions, covenants,
agreements and provisions thereof remain in full force and effect and are hereby
ratified and affirmed.

 

Section 7.              Counterparts.  This Amendment may be executed in
counterparts by the parties hereto, and each such counterpart shall be
considered an original and all such counterparts shall constitute one and the
same instrument.

 

2

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Section 8.              Representations and Warranties.  Borrower represents and
warrants to Fannie Mae and Lender as follows:

 

(a)           Borrower has the requisite power and authority to execute and
deliver this Amendment.

 

(b)           The execution, delivery and performance of this Amendment has been
duly authorized by all necessary action and proceedings by or on behalf of
Borrower, and no further approvals or filings of any kind, including any
approval of or filing with any Governmental Authority, are required by or on
behalf of Borrower as a condition to the valid execution, delivery and
performance by Borrower of this Amendment.

 

(c)           This Amendment has been duly authorized, executed and delivered by
Borrower and constitutes the legal, valid and binding obligations of Borrower,
enforceable against Borrower in accordance with its terms.

 

(d)           All representations and warranties set forth in the Master
Certificate of Borrower are true and correct in all material respects as of the
date hereof.

 

(e)           There exists no Event of Default or Potential Event of Default
under the Master Agreement or any of the Loan Documents as of the date hereof.

 

Section 9.           Governing Law.  The provisions of Section 15.06 of the
Master Agreement (entitled “Choice of Law; Consent to Jurisdiction; Waiver of
Jury Trial”) are hereby incorporated into this Amendment by this reference to
the fullest extent as if the text of such Section were set forth in its entirety
herein.

 

[The remainder of this page has been intentionally left blank.]

 

3

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day and year first above written.

 

 

BORROWER:

 

 

 

SNH FM FINANCING LLC, a Delaware limited liability company

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

Name:

David J. Hegarty

 

 

Title:

President

 

[Signatures continue on following page.]

 

S-1

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ACKNOWLEDGED AND AGREED TO BY IDOT GUARANTORS:

 

 

SNH FM FINANCING TRUST, a Maryland real estate investment trust

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

Name:

David J. Hegarty

 

 

Title:

President

 

 

 

 

 

 

 

 

 

ELLICOTT CITY LAND I, LLC, a Delaware limited liability company

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

Name:

David J. Hegarty

 

 

Title:

President

 

[Signatures continue on following page.]

 

S-2

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ACKNOWLEDGED AND AGREED TO BY KEY PRINCIPAL GUARANTOR:

 

 

 

SENIOR HOUSING PROPERTIES TRUST, a Maryland real estate investment trust

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

Name:

David J. Hegarty

 

 

Title:

President

 

[Signatures continue on following page.]

 

S-3

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LENDER:

 

 

 

CITIBANK, N.A., a national banking association

 

 

 

 

 

By:

/s/ Kathy Millhouse

 

 

Name:

Kathy Millhouse

 

 

Title:

Vice President

 

[Signatures continue on following page.]

 

S-4

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FANNIE MAE

 

 

 

By:

/s/ Michael W. Dick

 

 

Name:

Michael W. Dick

 

 

Title:

Assistant Vice President

 

S-5

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ANNEX A

 

Released Mortgaged Properties

 

PROPERTY NAME

 

ADDRESS

Desert Harbor

 

13840 North Desert Harbor Drive, Peoria, AZ 85381

Tucson

 

2500 North Rosemont Blvd., Tucson, AZ 85712

Remington Club I & II

 

16925 and 16916 Hierba Drive, San Diego, CA 92128

Park Summit

 

8500 Royal Palm Blvd., Coral Springs, FL 33065

Savannah Square

 

One Savannah Square Drive, Savannah, GA 31406

Aspenwood

 

14400 Homecrest Road, Silver Springs, MD 20906

Gables at Winchester

 

299 Cambridge Street, Winchester, MA 01890

Memorial Woods

 

777 North Post Oak Road, Houston, TX 77024

Bellgrade

 

2800 Polo Parkway, Midlothian, VA 23113

HeartFields at Easton

 

700 Port Street, Easton, MD 21601

 

A-1

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ANNEX B

 

Remaining Mortgaged Properties

 

PROPERTY NAME

 

ADDRESS

Rio Las Palmas

 

877 East March Lane, Stockton, CA 95207

Foulk Manor North

 

1212 Foulk Road, Wilmington, DE 19803

Coral Oaks

 

900 West Lake Road, Palm Harbor, FL 34684

Forum at the Crossing

 

8505 Woodfield Crossing Blvd., Indianapolis, IN 46240

Overland Park

 

3501 West 95th Street, Overland Park, KS 66206

Brookside

 

200 Brookside Drive, Louisville, KY 40243

Ellicott City

 

3004 North Ridge Road, Ellicott City, MD 21043

Severna Park

 

715 Benfield Road, Severna Park, MD 21146

Montebello

 

10500 Academy Road, Albuquerque, NM 87111

Cary

 

1050 Crescent Green Drive, Cary, NC 27511

Knightsbridge

 

4590 and 4625 Knightsbridge Blvd., Columbus, OH 43214

Lincoln Heights

 

311 West Nottingham Road, San Antonio, TX 78209

Woodlands

 

5055 W Panther Creek Drive, Woodlands, TX 77381

Charlottesville

 

491 Crestwood Drive, Charlottesville, VA 22903

Frederickburg

 

20 HeartFields Lane, Fredericksburg, VA 22405

Newport News

 

655 Denbigh Boulevard, Newport News, VA 23608

Northshore

 

10803 North Port Washington Road, Mequon, WI 53092

 

B-1

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ANNEX C

 

Amendment No. 2 to Amended and Restated Master Lease

 

C-1

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PARTIAL TERMINATION OF AND AMENDMENT NO. 2 TO
AMENDED AND RESTATED MASTER LEASE AGREEMENT

 

THIS PARTIAL TERMINATION OF AND AMENDMENT NO. 2 TO AMENDED AND RESTATED MASTER
LEASE AGREEMENT (this “Amendment”) is made as of August 31, 2012 by and among
SNH FM FINANCING LLC, a Delaware limited liability company, SNH FM FINANCING
TRUST, a Maryland real estate investment trust, and ELLICOTT CITY LAND I, LLC, a
Delaware limited liability company, collectively as landlord (“Landlord”), and
FVE FM FINANCING, INC., a Maryland corporation, as tenant (“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, dated as of August 4, 2009, as amended by that certain Amendment
No. 1 to Amended and Restated Master Lease Agreement (as so amended, the
“Lease”), 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 the Lease), all as more particularly
described in the Lease; and

 

WHEREAS, as of the date hereof, Landlord is conveying to its affiliate certain
of the Leased Property known as and located at (i) Forum at Desert Harbor, 13840
North Desert Harbor Drive, Peoria, Arizona, more particularly described on
Exhibit A-1 to the Lease; (ii) Forum at Tucson, 2500 North Rosemont Blvd.,
Tucson, Arizona, more particularly described on Exhibit A-2 to the Lease; (iii)
The Remington Club I and II, 16925 and 16916 Hierba Drive, San Diego,
California, more particularly described on Exhibit A-3 to the Lease; (iv) Park
Summit at Coral Springs, 8500 Royal Palm Blvd., Coral Springs, Florida, more
particularly described on Exhibit A-6 to the Lease; (v) Savannah Square, One
Savannah Square Drive, Savannah, Georgia, more particularly described on Exhibit
A-8 to the Lease; (vi) Gables at Winchester, 299 Cambridge Street, Winchester,
Massachusetts, more particularly described on Exhibit A-12 to the Lease;
(vii) HeartFields at Easton, 700 Port Street, Easton, Maryland, more
particularly described on Exhibit A-13 to the Lease; (viii) Aspenwood, 14400
Homecrest Road, Silver Spring, Maryland, more particularly described on
Exhibit A-16 to the Lease; (ix) Forum at Memorial Woods, 777 North Post Oak
Road, Houston, Texas, more particularly described on Exhibit A-20 to the Lease;
and (x) Morningside of Bellgrade, 2800 Polo Parkway, Midlothian, Virginia, more
particularly described on Exhibit A-25 to the Lease (collectively, the
“Terminated Properties”); and

 

WHEREAS, in connection with the conveyance of the Terminated Properties,
Landlord and Tenant wish to amend the Lease to terminate the Lease with respect
to the Terminated Properties;

 

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, the Lease is hereby amended as follows:

 

1.                                      Partial Termination of Lease.  The Lease
is terminated with respect to the Terminated Properties and neither Landlord nor
Tenant shall have any further rights or liabilities

 

--------------------------------------------------------------------------------

 

thereunder with respect to the Terminated Properties from and after the date
hereof, except for those rights and liabilities which by their terms survive the
termination of the Lease.

 

2.                                      Definition of Minimum Rent.  The defined
term “Minimum Rent” set forth in Section 1.67 of the Lease is deleted in its
entirety and replaced with the following:

 

“Minimum Rent”  shall mean the sum of Thirty-Three Million, Six Hundred
Seventy-Nine Thousand, Seven Hundred Sixteen and 55/100 Dollars ($33,679,716.55)
per annum.

 

3.                                      Schedule 1.  Schedule 1 to the Lease is
deleted in its entirety and replaced with Schedule 1 attached hereto.

 

4.                                      Exhibit A.  Exhibit A to the Lease is
amended by deleting the text of Exhibits A-1, A-2, A-3, A-6, A-8, A-12, A-13,
A-16, A-20 and A-25 attached thereto in their entirety and replacing them with
“Intentionally Deleted.”

 

5.                                      Ratification.  As amended hereby, the
Lease is ratified and confirmed.

 

[Remainder of page intentionally left blank;

signature pages follow]

 

2

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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 FM FINANCING LLC

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

SNH FM FINANCING TRUST

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

 

 

ELLICOTT CITY LAND I, LLC

 

 

 

 

 

 

 

By:

/s/ David J. Hegarty

 

 

David J. Hegarty

 

 

President

 

3

--------------------------------------------------------------------------------

 

 

TENANT:

 

 

 

FVE FM FINANCING, INC.

 

 

 

 

 

 

 

By:

/s/ Bruce J. Mackey Jr.

 

 

Bruce J. Mackey Jr.

 

 

President

 

4

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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

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-2

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-3

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-4

 

Rio Las Palmas
877 East March Lane
Stockton, CA 95207

 

2005

 

$

4,204,464

 

09/30/2003

 

10%

 

A-5

 

Foulk Manor North
1212 Foulk Road
Wilmington, DE 19803

 

2005

 

$

7,666,221

 

01/11/2002

 

10%

 

A-6

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-7

 

Coral Oaks
900 West Lake Road
Palm Harbor, FL 34684

 

2005

 

$

9,051,220

 

01/11/2002

 

10%

 

A-8

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-9

 

Forum at the Crossing
8505 Woodfield Crossing
Blvd.
Indianapolis, IN 46240

 

2005

 

$

11,973,559

 

01/11/2002

 

10%

 

A-10

 

Forum at Overland Park
3501 West 95th Street
Overland Park, KS 66206

 

2005

 

$

9,674,467

 

01/11/2002

 

10%

 

A-11

 

Forum at Brookside
200 Brookside Drive
Louisville, KY 40243

 

2005

 

$

12,831,113

 

01/11/2002

 

10%

 

A-12

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-13

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-14

 

Heartlands at Ellicott City
3004 North Ridge Road
Ellicott City, MD 21043

 

2005

 

$

7,872,811

 

03/01/2004

 

10%

 

A-15

 

Heartlands at Severna Park
715 Benfield Road
Severna Park, MD 21146

 

2005

 

$

3,521,926

 

10/25/2002

 

10%

 

A-16

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

 

--------------------------------------------------------------------------------

 

Exhibit

 

Property Address

 

Base
Gross
Revenues
(Calendar
Year)

 

Base Gross
Revenues
(Dollar
Amount)

 

Commencement
Date

 

Interest
Rate

 

A-17

 

HeartFields at Cary
1050 Crescent Green Drive
Cary, NC 27511

 

2005

 

$

3,092,311

 

10/25/2002

 

10%

 

A-18

 

Montebello
10500 Academy Road
Albuquerque, NM 87111

 

2005

 

$

10,739,724

 

01/11/2002

 

10%

 

A-19

 

Forum at Knightsbridge
4590 and 4625
Knightsbridge Blvd.
Columbus, OH 43214

 

2005

 

$

15,290,522

 

01/07/2002

 

10%

 

A-20

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-21

 

Forum at Lincoln Heights
311 West Nottingham Road
San Antonio, TX 78209

 

2005

 

$

12,559,927

 

01/11/2002

 

10%

 

A-22

 

Forum at Woodlands
5055 W Panther Creek Drive
The Woodlands, TX 77381

 

2005

 

$

13,072,902

 

01/11/2002

 

10%

 

A-23

 

Morningside of Charlottesville
491 Crestwood Drive
Charlottesville, VA 22903

 

2006

 

$

3,016,125

 

11/19/2004

 

9%

 

A-24

 

HeartFields at Fredericksburg
20 HeartFields Lane
Fredericksburg, VA 22405

 

2005

 

$

3,654,848

 

10/25/2002

 

10%

 

A-25

 

Intentionally Deleted

 

N/A

 

N/A

 

N/A

 

N/A

 

A-26

 

Morningside of Newport News
655 Denbigh Boulevard
Newport News, VA 23608

 

2006

 

$

3,226,806

 

11/19/2004

 

9%

 

A-27

 

Meadowmere - Northshore Assisted Living
10803 North Port Washington Road
Mequon, WI 53092

 

2009

 

N/A

 

01/04/2008

 

8%

 

 

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SCHEDULE I

 

Minimum Rent Payments

 

Facility Name

 

Address

 

Annual Rent

 

Rio Las Palmas

 

877 East March Lane,

Stockton, CA 95207

 

$

1,661,696.51

 

Foulk Manor North

 

1212 Foulk Road,

Wilmington, DE 19803

 

$

937,623.64

 

Coral Oaks

 

900 West Lake Road,

Palm Harbor, FL 34684

 

$

2,792,032.53

 

Forum at the Crossing

 

8505 Woodfield Crossing Blvd.,

Indianapolis, IN 46240

 

$

2,168,373.36

 

Overland Park

 

3501 West 95th Street,

Overland Park, KS 66206

 

$

2,056,810.61

 

Brookside

 

200 Brookside Drive,

Louisville, KY 40243

 

$

2,951,968.50

 

Ellicott City

 

3004 North Ridge Road,

Ellicott City, MD 21043

 

$

3,004,253.10

 

Severna Park

 

715 Benfield Road,

 Severna Park, MD 21146

 

$

1,137,224.52

 

Montebello

 

10500 Academy Road,

Albuquerque, NM 87111

 

$

3,099,167.99

 

Cary

 

1050 Crescent Green Drive,

Cary, NC 27511

 

$

660,584.81

 

Knightsbridge

 

4590 and 4625 Knightsbridge Blvd.,

Columbus, OH 43214

 

$

3,672,918.36

 

Lincoln Heights

 

311 West Nottingham Road,

San Antonio, TX 78209

 

$

3,416,946.99

 

Woodlands

 

5055 W Panther Creek Drive,

Woodlands, TX 77381

 

$

2,920,729.79

 

Charlottesville

 

491 Crestwood Drive,

Charlottesville, VA 22903

 

$

809,579.17

 

Frederickburg

 

20 HeartFields Lane,

Fredericksburg, VA 22405

 

$

920,480.87

 

Newport News

 

655 Denbigh Boulevard,

Newport News, VA 23608

 

$

705,186.70

 

Northshore

 

10803 North Port Washington Road,

Mequon, WI 53092

 

$

764,139.09

 

TOTAL:

 

 

 

$

33,679,716.55

 

 

Schedule I-1

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