**EXHIBIT10.2**

 

**PARTIALTERMINATION OF AND FIRST AMENDMENT TOAMENDED AND RESTATED MASTER LEASE AGREEMENT(LEASE NO. 1)**

 

**THISPARTIAL TERMINATION OF AND FIRST AMENDMENT TO AMENDED AND RESTATED MASTER LEASEAGREEMENT (LEASE NO. 1)**(this “Amendment”) is made and entered into as of October 1,2009 by and among each of the parties identified on the signature pages hereofas a landlord (collectively, “Landlord”) and FIVE STAR QUALITY CARETRUST, a Maryland business trust (“Tenant”).

 

**W****ITNESSETH:**

 

**WHEREAS**, pursuant to the terms of that certainAmended and Restated Master Lease Agreement (Lease No. 1), dated as of August 4,2009 (“Amended Lease No. 1”), Landlord leases to Tenant, and Tenantleases from Landlord, the Leased Property (as such term is defined in AmendedLease No. 1), all as more particularly described in Amended Lease No. 1;and

 

**WHEREAS**, on or about the date hereof, SPTIHSProperties Trust has sold a portion of the Leased Property consisting of thereal property and related improvements locatedat 34 Northcrest Drive, Council Bluffs, Iowa, all as more particularly described on Exhibit A-19 toAmended Lease No. 1 (the “Council Bluffs Property”); and

 

**WHEREAS,** SPTIHS Properties Trust, the otherentities comprising Landlord and Tenant wish to amend Amended Lease No. 1to terminate Amended Lease No. 1 with respect to the Council BluffsProperty;

 

**NOW,THEREFORE**, inconsideration of the mutual covenants herein contained and other good andvaluable consideration, the mutual receipt and legal sufficiency of which arehereby acknowledged, Landlord and Tenant hereby agree that, effective as of thedate hereof, Amended Lease No. 1 is hereby amended as follows:

 

1.             Capitalized Terms.  Capitalized terms used and not otherwisedefined herein shall have the meanings given such terms in Amended Lease No. 1.

 

2.             Partial Termination of Lease.  Amended Lease No. 1 is terminated withrespect to the Council Bluffs Property and neither Landlord nor Tenant shallhave any further 

 

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rights or liabilities thereunder with respect to theCouncil Bluffs Property from and after the date hereof, except those rights andliabilities which by their terms survive termination of Amended Lease No. 1.

 

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

 

**“MinimumRent”**  shall mean the sum of Forty-Four Million OneHundred Sixty-Four Thousand Forty-Four and 28/100s Dollars ($44,164,044.28) perannum.

 

4.             Schedule 1.  Schedule 1 to Amended Lease No. 1 ishereby deleted in its entirety and replaced with Schedule 1 attachedhereto.

 

5.             Exhibit A.  Exhibit A to Amended Lease No. 1 ishereby amended by deleting Exhibit A-19 attached thereto in its entiretyand replacing it with the following “Intentionally Deleted.”

 

6.             Ratification.  As amended hereby, Amended Lease No. 1is hereby ratified and confirmed.

 

**[SignaturePage Follows.]**

 

2

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**IN WITNESS WHEREOF**, the parties have executedthis 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 |
|       |                               |
|       | ** **                         |
|       | **SPTMNR 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 |

 

3

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|   | **SNH/LTA PROPERTIES GA LLC**    |
|--------|----------------------------------|
|   |                             |
|   |                             |
|   | By:                              | /s/ David J. Hegarty |
|   |                             | David J. Hegarty |
|   |                             | President |
|   |                             |
|   | ** **                       |
|   | **TENANT:**                      |
|   |                             |
|   | **FIVE STAR QUALITY CARE TRUST** |
|   |                             |
|   |                             |
|   | By:                              | /s/ Francis R. Murphy  III |
|   |                             | Francis R. Murphy III |
|   |                             | Treasurer |

 

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         |       | La  Mesa Healthcare Center  2470 South Arizona Avenue  Yuma, AZ 85364                                |       | 2005                                             |       | $6,333,157                                      |       | 12/31/2001             |       | 10%               |
| A-2         |       | SunQuest  Village of Yuma  265 East 24th Street  Yuma, AZ 85364                                 |       | 2005                                             |       | $543,595                                        |       | 12/31/2001             |       | 10%               |
| A-3         |       | Somerford  Place - Encinitas  1350 South El Camino Real  Encinitas, CA 92024                         |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-4         |       | Somerford  Place - Fresno  6075 North Marks Avenue  Fresno, CA 93711                                 |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-5         |       | Lancaster  Healthcare Center  1642 West Avenue J  Lancaster, CA 93534                                |       | 2005                                             |       | $6,698,648                                      |       | 12/31/2001             |       | 10%               |
| A-6         |       | Somerford  Place - Redlands  1319 Brookside Avenue  Redlands, CA 92373                               |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-7         |       | Somerford  Place - Roseville  110 Sterling Court  Roseville, CA 95661                                |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-8         |       | Leisure  Pointe  1371 Parkside Drive  San Bernardino, CA 92404                                       |       | 2007                                             |       | $1,936,220                                      |       | 09/01/2006             |       | 8.25%             |
| A-9         |       | Van  Nuys Health Care Center  6835 Hazeltine Street  Van Nuys, CA 91405                              |       | 2005                                             |       | $3,626,353                                      |       | 12/31/2001             |       | 10%               |
| A-10        |       | Mantey  Heights Rehabilitation & Care Center  2825 Patterson Road  Grand Junction, CO 81506 |       | 2005                                             |       | $5,564,949                                      |       | 12/31/2001             |       | 10%               |
| A-11        |       | Cherrelyn  Healthcare Center  5555 South Elati Street  Littleton, CO 80120                           |       | 2005                                             |       | $12,574,200                                     |       | 12/31/2001             |       | 10%               |

 

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| **Exhibit** | ** ** | **Property Address**                                                                                                            | ** ** | **Base Gross  Revenues********(Calendar  Year)** | ** ** | **Base Gross  Revenues********(Dollar Amount)** | ** ** | **Commencement  Date** | ** ** | **Interest Rate** |
|-------------|------------|---------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------|------------|-------------------------------------------------|------------|------------------------|------------|-------------------|
| A-12        |       | Somerford House and Somerford Place - Newark  I & II  501 South Harmony Road and  4175 Ogletown Road  Newark, DE 19713 |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-13        |       | Tuscany  Villa Of Naples (aka Buena Vida)  8901 Tamiami Trail East  Naples, FL 34113                                            |       | 2008                                             |       | $2,157,675                                      |       | 09/01/2006             |       | 8.25%             |
| A-14        |       | College  Park Healthcare Center  1765 Temple Avenue  College Park, GA 30337                                                     |       | 2005                                             |       | $4,130,893                                      |       | 12/31/2001             |       | 10%               |
| A-15        |       | Morningside  of Columbus  7100 South Stadium Drive  Columbus, GA 31909                                                          |       | 2006                                             |       | $1,381,462                                      |       | 11/19/2004             |       | 9%                |
| A-16        |       | Morningside  of Dalton  2470 Dug Gap Road  Dalton, GA 30720                                                                     |       | 2006                                             |       | $1,196,357                                      |       | 11/19/2004             |       | 9%                |
| A-17        |       | Morningside  of Evans  353 North Belair Road  Evans, GA 30809                                                                   |       | 2006                                             |       | $1,433,421                                      |       | 11/19/2004             |       | 9%                |
| A-18        |       | Vacant  Land Adjacent to Morningside of Macon  6191 Peake Road  Macon, GA 31220                                                 |       | 2006                                             |       | N/A                                             |       | 11/19/2004             |       | 9%                |
| A-19        |       | Intentionally  Deleted.                                                                                                         |       |                                             |       |                                            |       |                   |       |              |
| A-20        |       | Union  Park Health Services  2401 East 8th Street  Des Moines, IA 50316                                                    |       | 2005                                             |       | $4,404,678                                      |       | 12/31/2001             |       | 10%               |
| A-21        |       | Park  Place  114 East Green Street  Glenwood, IA 51534                                                                          |       | 2005                                             |       | $8,109,512                                      |       | 12/31/2001             |       | 10%               |
| A-22        |       | Prairie  Ridge Care & Rehabilitation  608 Prairie Street  Mediapolis, IA 52637                                         |       | 2005                                             |       | $3,234,505                                      |       | 12/31/2001             |       | 10%               |
| A-23        |       | Ashwood  Place  102 Leonardwood  Frankfort, KY 40601                                                                            |       | 2007                                             |       | $1,769,726                                      |       | 09/01/2006             |       | 8.25%             |
| A-24        |       | Somerford  Place - Annapolis  2717 Riva Road  Annapolis, MD 21401                                                               |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-25        |       | Somerford  Place - Columbia  8220 Snowden River Parkway  Columbia, MD 21045                                                     |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-26        |       | Somerford  Place - Frederick  2100 Whittier Drive  Frederick, MD 21702                                                          |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |

 

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| **Exhibit** | ** ** | **Property Address**                                                                                           | ** ** | **Base Gross  Revenues********(Calendar  Year)** | ** ** | **Base Gross  Revenues********(Dollar Amount)** | ** ** | **Commencement  Date** | ** ** | **Interest Rate** |
|-------------|------------|----------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------|------------|-------------------------------------------------|------------|------------------------|------------|-------------------|
| A-27        |       | Somerford  Place - Hagerstown  10114 & 10116 Sharpsburg Pike  Hagerstown, MD 21740                    |       | 2009                                             |       | N/A                                             |       | 03/31/2008             |       | 8%                |
| A-28        |       | The  Wellstead of Rogers  20500 and 20600  South Diamond Lake Road  Rogers, MN 55374                           |       | 2009                                             |       | N/A                                             |       | 03/01/2008             |       | 8%                |
| A-29        |       | Arbor  View Healthcare & Rehabilitation (aka Beverly Manor)  1317 North 36th St  St. Joseph, MO 64506 |       | 2005                                             |       | $4,339,882                                      |       | 12/31/2001             |       | 10%               |
| A-30        |       | Hermitage  Gardens of Oxford  1488 Belk Boulevard  Oxford, MS 38655                                            |       | 2007                                             |       | $1,816,315                                      |       | 10/01/2006             |       | 8.25%             |
| A-31        |       | Hermitage  Gardens of Southaven  108 Clarington Drive  Southaven, MS 38671                                     |       | 2007                                             |       | $1,527,068                                      |       | 10/01/2006             |       | 8.25%             |
| A-32        |       | Ashland  Care Center  1700 Furnace Street  Ashland, NE 68003                                                   |       | 2005                                             |       | $4,513,891                                      |       | 12/31/2001             |       | 10%               |
| A-33        |       | Blue  Hill Care Center  414 North Wilson Street  Blue Hill, NE 68930                                           |       | 2005                                             |       | $2,284,065                                      |       | 12/31/2001             |       | 10%               |
| A-34        |       | Central  City Care Center  2720 South 17th AvenueCentral   City, NE 68462                                 |       | 2005                                             |       | $2,005,732                                      |       | 12/31/2001             |       | 10%               |
| A-35        |       | Rose  Brook Care Center  106 5th Street  Edgar, NE 68935                                                  |       | 2005                                             |       | $1,862,074                                      |       | 12/31/2001             |       | 10%               |
| A-36        |       | Gretna  Community Living Center700 South Highway 6  Gretna, NE 68028                                           |       | 2005                                             |       | $3,380,356                                      |       | 12/31/2001             |       | 10%               |
| A-37        |       | Sutherland  Care Center  333 Maple Street  Sutherland, NE 69165                                                |       | 2005                                             |       | $2,537,340                                      |       | 12/31/2001             |       | 10%               |
| A-38        |       | Waverly  Care Center  11041 North 137th Street  Waverly, NE 68462                                         |       | 2005                                             |       | $3,066,135                                      |       | 12/31/2001             |       | 10%               |
| A-39        |       | Rolling  Hills Manor  600 Newport Drive  Baldwin, PA 15234                                                     |       | 2006                                             |       | $1,791,274                                      |       | 10/31/2005             |       | 9%                |
| A-40        |       | Ridgepointe  5301 Brownsville Road  Pittsburgh, PA 15236                                                       |       | 2006                                             |       | $1,944,499                                      |       | 10/31/2005             |       | 9%                |
| A-41        |       | Mount  Vernon of South Park  1400 Riggs Road  South Park, PA 15129                                             |       | 2006                                             |       | $2,718,057                                      |       | 10/31/2005             |       | 9%                |
| A-42        |       | Morningside  of Gallatin  1085 Hartsville Pike  Gallatin, TN 37066                                             |       | 2006                                             |       | $1,343,801                                      |       | 11/19/2004             |       | 9%                |

 

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| **Exhibit** | ** ** | **Property Address**                                                                                                            | ** ** | **Base Gross  Revenues********(Calendar  Year)** | ** ** | **Base Gross  Revenues********(Dollar Amount)** | ** ** | **Commencement  Date** | ** ** | **Interest Rate** |
|-------------|------------|---------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------|------------|-------------------------------------------------|------------|------------------------|------------|-------------------|
| A-43        |       | Walking  Horse Meadows  207 Uffelman Drive  Clarksville, TN 37043                                                               |       | 2007                                             |       | $1,471,410                                      |       | 01/01/2007             |       | 8.25%             |
| A-44        |       | Morningside  of Belmont  1710 Magnolia Boulevard  Nashville, TN 37212                                                           |       | 2006                                             |       | $3,131,648                                      |       | 06/03/2005             |       | 9%                |
| A-45        |       | Dominion  Village at Chesapeake  2856 Forehand Drive  Chesapeake, VA 23323                                                      |       | 2005                                             |       | $1,416,951                                      |       | 05/30/2003             |       | 10%               |
| A-46        |       | Dominion  Village at Williamsburg  4132 Longhill Road  Williamsburg, VA 23188                                                   |       | 2005                                             |       | $1,692,753                                      |       | 05/30/2003             |       | 10%               |
| A-47        |       | Heartfields  at Richmond  500 North Allen Avenue  Richmond, VA 23220                                                            |       | 2005                                             |       | $1,917,765                                      |       | 10/25/2002             |       | 10%               |
| A-48        |       | Brookfield  Rehabilitation and Specialty Care (aka Woodland Healthcare Center)  18741 West Bluemound Road  Brookfield, WI 53045 |       | 2005                                             |       | $13,028,846                                     |       | 12/31/2001             |       | 10%               |
| A-49        |       | Meadowmere  - Southport Assisted Living  8350 and 8351 Sheridan Road  Kenosha, WI 53143                                         |       | 2009                                             |       | N/A                                             |       | 01/04/2008             |       | 8%                |
| A-50        |       | Meadowmere  - Madison Assisted Living  5601 Burke Road  Madison, WI 53718                                                       |       | 2009                                             |       | N/A                                             |       | 01/04/2008             |       | 8%                |
| A-51        |       | Sunny  Hill Health Care Center  4325 Nakoma Road  Madison, WI 53711                                                             |       | 2005                                             |       | $3,237,633                                      |       | 12/31/2001             |       | 10%               |
| A-52        |       | Mitchell  Manor Senior Living  5301 West Lincoln Avenue  West Allis, WI 53219                                                   |       | 2009                                             |       | N/A                                             |       | 01/04/2008             |       | 8%                |
| A-53        |       | Laramie  Care Center  503 South 18th Street  Laramie, WY 82070                                                             |       | 2005                                             |       | $4,473,949                                      |       | 12/31/2001             |       | 10%               |

 

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