EXHIBIT 10.76

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

 

MASTER LEASE NO. 1 AMENDMENT AGREEMENT

 

BY AND AMONG

 

KINDRED HEALTHCARE, INC.

(f/k/a Vencor, Inc.),

 

KINDRED HEALTHCARE OPERATING, INC.

(f/k/a Vencor Operating, Inc.),

 

AND

 

VENTAS REALTY, LIMITED PARTNERSHIP

 

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

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

 

MASTER LEASE NO. 1 AMENDMENT AGREEMENT

 

THIS MASTER LEASE NO. 1 AMENDMENT AGREEMENT (hereinafter this “Agreement”) is
dated as of the 22nd day of December, 2004, and is by and among VENTAS REALTY,
LIMITED PARTNERSHIP, a Delaware limited partnership (together with its
successors and assigns, “Lessor”), having an office at 10350 Ormsby Park Place,
Suite 300, Louisville, Kentucky 40223, and KINDRED HEALTHCARE, INC., a Delaware
corporation (f/k/a Vencor, Inc.) (“Kindred”), and KINDRED HEALTHCARE OPERATING,
INC., a Delaware corporation (f/k/a Vencor Operating, Inc.) (“Operator”;
Operator, jointly and severally with Kindred and permitted successors and
assignees of Operator and Kindred, “Tenant”), both having an office at 680 South
4th Avenue, Louisville, Kentucky 40202.

 

RECITALS

 

A. Lessor and Tenant entered into a certain Amended and Restated Master Lease
Agreement No. 1 dated as of April 20, 2001 (as the same may have been or may
hereafter be amended, amended and restated, supplemented, modified, severed,
renewed, extended or replaced, the “Lease”), demising to Tenant certain
properties.

 

B. Lessor and Tenant entered into those two certain Agreements for Sale of Real
Estate and Master Lease Amendment dated as of the date hereof (the
“Sale/Amendment Agreements”).

 

C. Immediately prior hereto and pursuant to the Sale/Amendment Agreements,
Lessor and Tenant entered into those certain Master Lease No. 1 Partial Lease
Termination Agreements bearing even date herewith (the “Partial Lease
Terminations”), pursuant to which the Lease was terminated as it applied to
certain properties.

 

D. Lessor and Tenant desire to amend the Lease as it applies to the remaining
Leased Properties, after the aforesaid termination, on the terms set forth in
this Agreement.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the parties hereby agree as follows:

 

1. Capitalized Terms. All capitalized terms used herein and not defined herein
shall have the meaning ascribed thereto in the Lease.

 

2. Base Rent and Current Rent Amendments. Relative to the definitions of “Base
Rent” and “Current Rent” contained in Section 2.1 of the Lease, Lessor and
Tenant agree that the Base Rent and Current Rent for the Leased Properties
remaining under the Lease after the termination referenced in the Partial Lease
Termination shall, for the period from the date immediately following the date
hereof through April 30, 2005, be equal to Forty Three Million One Hundred
Thirty Seven Thousand Six Hundred Eighty Two and 44/100 Dollars ($43,137,682.44)
per annum, and, for Rent Calculation Years thereafter, Base Rent and Current

 

2

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

Rent shall be determined as set forth in subsection (d) of the definition of
“Base Rent” or subsection (b) of the definition of “Current Rent”, as
applicable, contained in such Section 2.1, in each case subject to the
provisions of such definitions relative to the Reset Option and to the
provisions of Article XIX relative to the amount of the Base Rent and Current
Rent during Extended Terms.

 

3. New Exhibit C. Effective as of the date immediately following the date
hereof, Exhibit C to the Lease shall be amended and restated in its entirety to
read as set forth in Attachment 1 to this Agreement.

 

4. New Exhibit D. Exhibit D to the Lease is hereby amended and restated in its
entirety to read as set forth in Attachment 2 to this Agreement.

 

5. No Other Amendments. Except as provided in this Agreement, the Lease remains
in full force and effect without modification.

 

6. Successors and Assigns. This Agreement and the covenants and agreements
herein contained shall be binding upon and inure to the benefit of Lessor and
Tenant and their respective heirs, devisees, successors and assigns.

 

7. Integrated Agreement; Modifications; Waivers. This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes any and all prior representations, understandings and
agreements, whether written or oral, with respect to such subject matter. Each
of the parties hereto acknowledges that it has not relied upon, in entering into
this Agreement, any representation, warranty, promise or condition not
specifically set forth in this Agreement. No supplement, modification or waiver
of any provision of this Agreement shall be binding unless executed in writing
by the party to be bound thereby. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar), nor shall such waiver constitute a continuing
waiver unless otherwise expressly provided.

 

8. Headings and Captions. The headings and captions of the paragraphs of this
Agreement are for convenience of reference only and shall not affect the meaning
or interpretation of this Agreement or any provision hereof.

 

9. Gender and Number. As used in this Agreement, the neuter shall include the
feminine and masculine, the singular shall include the plural, and the plural
shall include the singular, except where expressly provided to the contrary.

 

10. Severability. In the event that any paragraph, section, sentence, clause or
phrase contained in this Agreement becomes or is held by any court of competent
jurisdiction to be illegal, null or void or against public policy, the remaining
paragraphs, sections, sentences, clauses or phrases contained in this Agreement
shall not be affected thereby.

 

3

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

11. Counterparts. This Agreement and any amendment to this Agreement may be
signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto were upon the same instrument.

 

[Signature Page Follows]

 

4

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

IN WITNESS WHEREOF, the parties hereto have executed these presents the day and
year first above written.

 

TENANT:

KINDRED HEALTHCARE, INC., a

Delaware corporation formerly known as

Vencor, Inc.

By:  

/s/ Joseph L. Landenwich

Name:

 

Joseph L. Landenwich

Its:

 

Senior Vice President of Corporate Legal

Affairs and Corporate Secretary

TENANT:

KINDRED HEALTHCARE OPERATING,

INC., a Delaware corporation formerly known

as Vencor Operating, Inc.

By:  

/s/ Joseph L. Landenwich

Name:

 

Joseph L. Landenwich

Its:

 

Senior Vice President of Corporate Legal

Affairs and Corporate Secretary

LESSOR:

VENTAS REALTY, LIMITED

PARTNERSHIP, a Delaware limited

partnership

By:  

Ventas, Inc., a Delaware corporation, its

general partner

   

By:

 

/s/ T. Richard Riney

       

T. Richard Riney, Executive Vice

President, General Counsel and

Secretary

 

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

 

Acknowledgments

 

STATE OF KENTUCKY    )      ) COUNTY OF JEFFERSON    )

 

This 21st day of December, 2004, personally came before me Deborah L. Stemmle, a
Notary Public in and for said County and State, Joseph L. Landenwich, who being
by me duly sworn, says that he is the Senior Vice President of Corporate Legal
Affairs and Corporate Secretary of KINDRED HEALTHCARE, INC., a Delaware
corporation, and that the seal affixed to the foregoing instrument in writing is
the corporate seal of said corporation, and that said writing was signed and
sealed by him on behalf of such corporation by its authority duly given. And the
said Joseph L. Landenwich acknowledged the said writing to be the act and deed
of said corporation.

 

WITNESS my hand and notarial stamp/seal this 21st day of December, 2004.

 

/s/ Deborah L. Stemmle

Notary Public

 

My Commission Expires:

 

May 22, 2005

[Notarial Stamp/Seal]

 

STATE OF KENTUCKY    )      ) COUNTY OF JEFFERSON    )

 

This 21st day of December, 2004, personally came before me Deborah L. Stemmle, a
Notary Public in and for said County and State, Joseph L. Landenwich, who being
by me duly sworn, says that he is the Senior Vice President of Corporate Affairs
and Corporate Secretary of KINDRED HEALTHCARE OPERATING, INC., a Delaware
corporation, and that the seal affixed to the foregoing instrument in writing is
the corporate seal of said corporation, and that said writing was signed and
sealed by him on behalf of such corporation by its authority duly given. And the
said Joseph L. Landenwich acknowledged the said writing to be the act and deed
of said corporation.

 

WITNESS my hand and notarial stamp/seal this 21st day of December, 2004.

 

/s/ Deborah L. Stemmle

Notary Public

 

My Commission Expires:

 

May 22, 2005

[Notarial Stamp/Seal]

 

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

STATE OF KENTUCKY    )      ) COUNTY OF JEFFERSON    )

 

This 20th day of December, 2004, personally came before me Barbara F. Thompson,
a Notary Public in and for said County and State, T. Richard Riney, who being by
me duly sworn, says that he is the Executive Vice President, General Counsel and
Secretary of VENTAS, INC., a Delaware corporation, in its capacity as the
general partner of VENTAS REALTY, LIMITED PARTNERSHIP, a Delaware limited
partnership, and that the seal affixed to the foregoing instrument in writing is
the corporate seal of said corporation, and that said writing was signed and
sealed by him on behalf of such corporation by its authority duly given, in its
aforesaid general partner capacity on behalf of the aforesaid limited
partnership. And the said Executive Vice President, General Counsel and
Secretary acknowledged the said writing to be the act and deed of said
corporation, acting in such general partner capacity.

 

WITNESS my hand and notarial stamp/seal this 20th day of December, 2004.

 

/s/ Barbara F. Thompson

Notary Public

 

My Commission Expires:

 

Dec. 9, 2006

[Notarial Stamp/Seal]

 

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

 

CONSENT

 

The undersigned hereby consents to the terms of the foregoing instrument.

 

JPMORGAN CHASE BANK (formerly THE CHASE MANHATTAN BANK, successor by merger to
MORGAN GUARANTY TRUST COMPANY OF NEW YORK), as administrative agent and
Collateral Agent under that certain $300,000,000 Amended and Restated Credit
Agreement, dated as of June 28, 2004

 

By:  

/s/ Dawn L. Lee Lum

Name:

 

Dawn L. Lee Lum

Title:

 

Vice President

 

STATE OF NEW YORK    )      ) COUNTY OF NEW YORK    )

 

This 20th day of December, 2004, personally came before me Edeline C. Adderley,
a Notary Public in and for said County and State, Dawn L. Lee Lum, who being by
me duly sworn, says that he is the Vice President of JPMORGAN CHASE BANK, a
NATIONAL ASSOCIATION corporation, and that the seal affixed to the foregoing
instrument in writing is the corporate seal of said corporation, and that said
writing was signed and sealed by him on behalf of such corporation by its
authority duly given. And the said Vice President acknowledged the said writing
to be the act and deed of said corporation.

 

WITNESS my hand and notarial stamp/seal this 20th day of December, 2004.

 

/s/ Edeline C. Adderley

Notary Public

 

My Commission Expires:

 

September 3, 2006

[Notarial Stamp/Seal]

 

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

 

ATTACHMENT 1

 

Exhibit C

 

Allocation Schedule – Applicable Transferred Property Percentages

 

     Facility ID

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

  

Facility Name

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

   Base Rent
Commencing
May 1, 2004

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

   Percentage of
Master Lease
Commencing
December 22,
2004

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

  1    114    Arden Rehab & Healthcare Center    523,908.12    1.2145 % 2    127
   Northwest Continuum Care Center    481,270.44    1.1157 % 3    132    Madison
Healthcare & Rehab Center    372,884.04    0.8644 % 4    140    Wasatch Care
Center    385,006.80    0.8925 % 5    185    Heritage Health & Rehab Center   
40,279.20    0.0934 % 6    191    Silas Creek Manor    526,343.76    1.2201 % 7
   198    Harrington House Nursing & Rehab Center    854,699.40    1.9813 % 8   
218    Cascade Rehab & Care Center    341,130.48    0.7908 % 9    327    Laurel
Ridge Rehab & Nursing Center    368,526.60    0.8543 % 10    409    Mountain
Valley Care & Rehab    305,354.28    0.7079 % 11    416    Park Place Health
Care Center    956,295.36    2.2168 % 12    433    Parkview Acres Care & Rehab
Center    350,970.60    0.8136 % 13    436    Valley Healthcare & Rehab Center
   404,320.80    0.9373 % 14    441    Mountain Towers Healthcare & Rehab   
219,530.64    0.5089 % 15    452    Sunnyside Care Center    241,847.40   
0.5606 % 16    462    Queen Anne Healthcare    617,740.56    1.4320 % 17    516
   Hammersmith House Nursing Care Center    160,218.36    0.3714 % 18    518   
Timberlyn Heights Nursing & Alzheimer’s Center    441,210.84    1.0228 % 19   
525    La Veta Healthcare Center    460,982.52    1.0686 % 20    552    Shore
Village Rehab & Nursing Center    309,961.92    0.7185 % 21    555    Brentwood
Manor Rehab & Nursing Center    184,541.16    0.4278 % 22    567    Nutmeg
Pavilion Healthcare    565,927.68    1.3119 % 23    577    Minerva Park Nursing
& Rehab Center    398,088.48    0.9228 % 24    640    Las Vegas Healthcare &
Rehab Center    395,059.68    0.9158 % 25    738    Bay View Nursing & Rehab
Center    285,999.48    0.6630 % 26    742    Sonoran Rehab & Care Center   
343,784.16    0.7969 % 27    745    Aurora Care Center    585,522.12    1.3573 %
28    769    North Ridge Med. & Rehab Center    701,488.32    1.6262 % 29    779
   Westview Nursing & Rehab Center    445,821.00    1.0335 % 30    784   
Northfield Center for Health & Rehab    694,461.72    1.6099 % 31    868   
Lebanon County Manor    288,227.88    0.6682 %

 

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

32    4602    Kindred Hospital So. Florida Coral Gables Campus    823,904.40   
1.9099 % 33    4618    Kindred Hospital Oklahoma City    1,115,430.00    2.5857
% 34    4628    Kindred Hospital Chattanooga    847,254.48    1.9641 %     
Facility ID

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

  

Facility Name

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

   Base Rent
Commencing
May 1, 2004

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

   Percentage of
Master Lease
Commencing
December 22,
2004

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

  35    4633    Kindred Hospital Louisville    3,379,637.16    7.8345 % 36   
4637    Kindred Hospital Chicago North Campus    5,964,519.00    13.8267 % 37   
4638    Kindred Hospital Indianapolis    1,894,324.56    4.3913 % 38    4652   
Kindred Hospital North Florida    3,452,246.64    8.0029 % 39    4656    Kindred
Hospital Phoenix    895,680.36    2.0763 % 40    4680    Kindred Hospital St.
Louis    1,067,596.44    2.4749 % 41    4690    Kindred Hospital Chicago
Northlake Campus    1,827,749.28    4.2370 % 42    4822    Kindred Hospital San
Francisco Bay Area    1,719,033.48    3.9850 % 43    4842    Kindred Hospital
Westminster    4,942,342.92    11.4571 % 44    4848    Kindred Hospital San
Diego    1,956,559.92    4.5356 %               

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

  

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

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

          Total Master Lease 1    43,137,682.44    100.00%                 

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

  

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

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

 

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

 

ATTACHMENT 2

 

EXHIBIT D

Renewal Groups

 

Master Lease #1

 

     Facility ID

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

  

Name

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

  

City

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

   State

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

   Lease Expiration
Date

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

   Renewal
Group
Number

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

1    132    Madison Healthcare & Rehab. Ctr.    Madison    TN    30-Apr-08    #1
2    577    Minerva Park Nursing & Rehab. Ctr.    Columbus    OH    30-Apr-08   
#1 3    779    Westview Nursing & Rehab. Center    Bedford    IN    30-Apr-08   
#1 4    784    Northfield Centre for Health & Rehab.    Louisville    KY   
30-Apr-08    #1 5    4618    Kindred Hospital - Oklahoma City    Oklahoma City
   OK    30-Apr-08    #1 6    4822    Kindred Hospital - San Francisco Bay Area
   San Leandro    CA    30-Apr-08    #1 7    114    Arden Rehabilitation &
Healthcare Ctr.    Seattle    WA    30-Apr-08    #3 8    140    Wasatch Care
Center    Ogden    UT    30-Apr-08    #3 9    416    Park Place Health Care
Center    Great Falls    MT    30-Apr-08    #3 10    525    La Veta Healthcare
Center    Orange    CA    30-Apr-08    #3 11    4842    Kindred Hospital –
Westminster    Westminster    CA    30-Apr-08    #3 12    327    Laurel Ridge
Rehab. & Nursing Ctr.    Jamaica Plain    MA    30-Apr-13    #4 13    436   
Valley Healthcare & Rehab. Center    Tucson    AZ    30-Apr-13    #4 14    462
   Queen Anne Healthcare    Seattle    WA    30-Apr-13    #4 15    552    Shore
Village Rehab. & Nursing Ctr.    Rockland    ME    30-Apr-13    #4 16    555   
Brentwood Rehab. & Nsg. Center    Yarmouth    ME    30-Apr-13    #4 17    640   
Las Vegas Healthcare & Rehab. Ctr.    Las Vegas    NV    30-Apr-13    #4 18   
738    Bay View Nursing & Rehab. Center    Alameda    CA    30-Apr-13    #4 19
   742    Sonoran Rehab & Care Center    Phoenix    AZ    30-Apr-13    #4

 

1

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

20    4633    Kindred Hospital – Louisville    Louisville    KY    30-Apr-13   
#4 21    4638    Kindred Hospital – Indianapolis    Indianapolis    IN   
30-Apr-13    #4 22    127    Northwest Continuum Care Center    Longview    WA
   30-Apr-10    #6 23    185    Heritage Health & Rehab. Center    Vancouver   
WA    30-Apr-10    #6 24    191    Silas Creek Manor    Winston-Salem    NC   
30-Apr-10    #6 25    452    Sunnyside Care Center    Salem    OR    30-Apr-10
   #6 26    769    North Ridge Med. & Rehab. Center    Manitowoc    WI   
30-Apr-10    #6 27    868    Lebanon Country Manor    Lebanon    OH    30-Apr-10
   #6 28    4637    Kindred Hospital – Chicago North    Chicago    IL   
30-Apr-10    #6 29    4690    Kindred Hospital - Chicago (Northlake Campus)   
Northlake    IL    30-Apr-10    #6 30    516    Hammersmith House Nsg. Care Ctr.
   Saugus    MA    30-Apr-10    #7 31    518    Timberlyn Heights Nsg. & Alz.
Ctr.    Great Barrington    MA    30-Apr-10    #7 32    567    Nutmeg Pavilion
Healthcare    New London    CT    30-Apr-10    #7 33    4602    Kindred Hospital
- Coral Gables    Coral Gables    FL    30-Apr-10    #7 34    4652    Kindred
Hospital - North Florida    Green Cove Spr.    FL    30-Apr-10    #7     
Facility ID

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

  

Name

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

  

City

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

   State

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

   Lease Expiration
Date

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

   Renewal
Group
Number

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

35    218    Cascade Care Center    Caldwell    ID    30-Apr-10    #8 36    409
   Mountain Valley Care and Rehab.    Kellogg    ID    30-Apr-10    #8 37    433
   Parkview Acres Care & Rehab Ctr.    Dillon    MT    30-Apr-10    #8 38    441
   Mountain Towers Healthcare & Rehab    Cheyenne    WY    30-Apr-10    #8 39   
745    Aurora Care Center    Aurora    CO    30-Apr-10    #8 40    4656   
Kindred Hospital – Phoenix    Phoenix    AZ    30-Apr-10    #8 41    4848   
Kindred Hospital - San Diego    San Diego    CA    30-Apr-10    #8 42    198   
Harrington House Nsg. & Rehab. Ctr.    Walpole    MA    30-Apr-10    #9 43   
4628    Kindred Hospital – Chattanooga    Chattanooga    TN    30-Apr-10    #9
44    4680    Kindred Hospital - St. Louis    St. Louis    MO    30-Apr-10    #9