Document:

Exhibit 10.6

                                     Form of

                           MASTER MANAGEMENT AGREEMENT

                                 by and between

                              CERTAIN AFFILIATES OF

                         SENIOR HOUSING PROPERTIES TRUST

                                       AND

                                FIVE STAR QUALITY

                                   CARE, INC.

                              AS OF October 1, 2000

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                                Table of Contents

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ARTICLE 1         DEFINITIONS.....................................................................................1
         1.1      Agreement.......................................................................................1
         1.2      Approved Budgets................................................................................1
         1.3      Business Day....................................................................................1
         1.4      Company.........................................................................................1
         1.5      EntitY..........................................................................................2
         1.6      Facilities......................................................................................2
         1.7      Facilities Accounts.............................................................................2
         1.8      Facilities Expenses.............................................................................2
         1.9      Facility Leases.................................................................................2
         1.10     Facilities Records..............................................................................2
         1.11     Fiscal Year.....................................................................................2
         1.12     Management Fee..................................................................................2
         1.13     Net Patient Revenues............................................................................3
         1.14     Person..........................................................................................3
         1.15     Prior Arrangements..............................................................................3
ARTICLE 2         APPOINTMENT; DUTIES.............................................................................3
         2.1      Appointment of the Manager......................................................................3
         2.2      Acceptance; General Description of Duties.......................................................4
         2.3      Certain Specific Duties.........................................................................5
ARTICLE 3         INSURANCE.......................................................................................8
         3.1      Maintenance of Companies' Insurance.............................................................8
         3.2      Manager's Insurance.............................................................................8
         3.3      Indemnification of Manager......................................................................8
ARTICLE 4         REPORTING AND RECORDKEEPING.....................................................................9
         4.1      Maintenance of Records, Etc.....................................................................9
         4.2      Companies' Property; Continuing Access..........................................................9
         4.3      Companies' Audit Rights.........................................................................9
         4.4      Required Reports, Etc..........................................................................10
         4.5      Supporting Documentation.......................................................................10
ARTICLE 5         BANK ACCOUNTS..................................................................................11
         5.1      Facilities Accounts............................................................................11
         5.2      Access to Accounts, Etc........................................................................11
ARTICLE 6         PAYMENT OF EXPENSES............................................................................11
         6.1      Costs Eligible for Payment from Facilities Account, Etc........................................11
         6.2      Excluded Manager Costs.........................................................................11
         6.3      Insufficient Funds.............................................................................12
ARTICLE 7         COMPENSATION; TERM; TERMINATION................................................................12

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                                Table of Contents
                                  (continued)
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         7.1      Management Fee.................................................................................12
         7.2      Term...........................................................................................13
         7.3      Fees on Termination or Expiration..............................................................13
         7.4      Orderly Transition.............................................................................13
ARTICLE 8         MISCELLANEOUS..................................................................................13
         8.1      Limitation on Assignment.......................................................................13
         8.2      Other Business, Etc............................................................................13
         8.3      Notices........................................................................................13
         8.4      Successors and Assigns, Etc....................................................................15
         8.5      Severability...................................................................................15
         8.6      Entire Contract................................................................................15
         8.7      Headings; Counterparts.........................................................................15
         8.8      Relationship of Parties........................................................................15
         8.9      Governing Law..................................................................................15
         8.10     Modification of Agreement......................................................................16
         8.11     Effective Date.................................................................................16
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                           MASTER MANAGEMENT AGREEMENT

         THIS MASTER MANAGEMENT  AGREEMENT is made as of October 1, 2000, by and
among FIVE STAR QUALITY CARE, INC., a Delaware corporation (the "Manager"),  and
each of the parties  identified on the signature page of this Agreement (each, a
"Company" and collectively, the "Companies").

                              W I T N E S S E T H :

         WHEREAS,  the Companies  are the owners or tenants of those  facilities
described on Exhibit A (each, a "Facility" and collectively,  the "Facilities");
and

         WHEREAS, the Companies desire to retain the Manager, and the Manager is
willing to serve, as manager and operator of the Facilities, subject to and upon
the terms and conditions hereinafter set forth;

         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,  the  Companies  and the
Manager hereby agree as follows:

                                   ARTICLE 1

                                   DEFINITIONS

         Capitalized  terms used in this  Agreement  shall have the meanings set
forth below or in the section of this Agreement referred to below.

         1.1 "Agreement" shall mean this Master Management  Agreement,  together
with  Exhibit A attached  hereto,  as they may be  amended  from time to time as
herein provided.

         1.2  "Approved  Budgets"  shall  have the  meaning  given  such term in
Section 4.4.

         1.3 "Business Day" shall mean any day other than Saturday,  Sunday,  or
any other day on which banking institutions in The Commonwealth of Massachusetts
are authorized by law or executive action to close.

         1.4  "Company"  shall have the meaning given such term in the preambles
to this Agreement.

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         1.5   "Entity"   shall  mean  any   corporation,   general  or  limited
partnership,  limited  liability  company,  stock company or association,  joint
venture, association,  company, trust, bank, trust company, land trust, business
trust,  any government or agency or political  subdivision  thereof or any other
entity.

         1.6 "Facilities" shall have the meaning given such term in the recitals
to this Agreement.

         1.7  "Facilities  Accounts"  shall have the meaning  given such term in
Section 5.1.

         1.8  "Facilities  Expenses"  shall  mean all costs,  expenses  and cash
disbursements  of any  type  relating  to or  arising  out of the  ownership  or
operation of the  Facilities,  including,  without  limitation,  taxes,  capital
improvements,  rental and other payments under any Facility Lease,  debt service
(interest and principal) on any indebtedness, expenses of operating, maintaining
and repairing the Facilities and funding necessary reserves.

         1.9  "Facility  Leases" shall mean,  collectively,  any ground or space
leases  or any other  occupancy  agreements  from  time to time in  effect  with
respect to any of the Facilities  other than residency  agreements with patients
and/or residents of the Facilities.

         1.10 "Facilities  Records" shall mean all records,  books and accounts,
vouchers,  statements,  receipts,  invoices,  plans,  specifications,   permits,
approvals,  contracts and other documents relating to the ownership,  management
or  operation of the  Facilities  or otherwise  relating to  performance  by the
Manager of its services with respect to the Facilities hereunder.

         1.11 "Fiscal  Year" shall mean each twelve (12) month period during the
term of this Agreement commencing January 1.

         1.12  "Management  Fee"  shall mean (i) with  respect  to any  Facility
subject to the Prior  Arrangements,  (x) for the first ninety (90) days that the
Manager  shall  act as  manager  of  such  Facility,  whether  pursuant  to this
Agreement or the Prior  Arrangements,  an amount equal to all costs and expenses
incurred  by,  or  allocable  to,  the  Manager's  performance  of its  services
hereunder or thereunder during such period, and (y) thereafter,  a per annum fee
equal to five percent (5%) of Net Patient  Revenues of such  Facility;  and (ii)
with respect to any Facility which is not subject to the Prior  Arrangements,  a
per  annum  fee

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equal to five percent (5%) of Net Patient Revenues of such Facility.

         1.13 "Net Patient  Revenues"  shall mean, with respect to any Facility,
for any period,  the aggregate amount of all revenues  (determined in accordance
with generally accepted accounting principles,  consistently applied),  received
by, or by  reason  of the  operation  of,  such  Facility  during  such  period,
including, without limitation, all rents and/or residency fees received, patient
or client revenues  received for the use of or otherwise by reason of all rooms,
beds  and  other  facilities  provided,  meals  served,  services  performed  or
provided,  space  or  facilities  leased  or  subleased  or  goods  sold at such
Facility, but excluding revenues from professional fees or charges by physicians
and unaffiliated  providers of ancillary services to the extent such charges are
paid  over to,  or  separately  billed  by,  such  physicians  and  unaffiliated
providers.

         1.14  "Person"  shall mean any  individual  or  Entity,  and the heirs,
executors, administrators, legal representatives, successors and assigns of such
Person where the context so admits.

         1.15  "Prior  Arrangements"  shall mean,  collectively,  (i) an Interim
Management  Agreement,  dated as of July 1, 2000, among the Manager,  certain of
the Companies,  and others,  as amended from time to time, and (ii) a Management
and Servicing Agreement,  dated as of July 10, 2000, among the Manager,  certain
of the Companies, and others, as amended from time to time.

                                    ARTICLE 2

                               APPOINTMENT; DUTIES

         2.1 Appointment of the Manager. The Companies hereby engage the Manager
to manage,  supervise and operate the Facilities with the objective of providing
high quality skilled nursing, intermediate, resident care, senior housing and/or
assisted living services to patients and/or residents of the Facilities,  as the
case may be, and to carry out general  management  functions with respect to the
Facilities.

         Each Facility shall be operated subject to the direction and control of
the Company licensed to operate such Facility and, in connection therewith, such
Company  (i)  shall  retain  ultimate  authority  over the  business,  policies,
operations  and assets of its  Facility  and (ii) shall  remain the  responsible
licensee of its Facility and, as such,  be fully liable and

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legally  accountable  at all times to all  patients,  governmental  agencies and
third  parties  for all  patient  care and funds,  and all other  aspects of the
operation and maintenance of its Facility.

         2.2 Acceptance; General Description of Duties. The Manager accepts such
engagement and agrees to provide all services  necessary to provide and maintain
such high  quality  care and  management,  including,  without  limitation,  the
following:

                  (a)  Supervising   the   performance  of  all   administrative
         functions as may be necessary in the  management  and  operation of the
         Facilities;

                  (b) Selecting, hiring, training,  supervising,  monitoring the
         performance  of  and   terminating   all  personnel   involved  in  the
         administration and day-to-day operations of the Facilities,  including,
         without  limitation,   professional  personnel,   custodial,  cleaning,
         maintenance,  and other  operational  personnel,  and  secretarial  and
         bookkeeping personnel;

                  (c) Providing accounting, billing, purchasing and bill payment
         functions for the Facilities;

                  (d)  Establishing  systems of  accounts  and  supervising  the
         maintenance  of  ledgers  and  other  primary   accounting  records  by
         personnel of the Facilities;

                  (e) Supervising the financial affairs of the Facilities;

                  (f)  Establishing  and  supervising  the   implementation   of
         operating budgets and establishing and administering financial controls
         over the operations and management of the Facilities;

                  (g) Developing and establishing  financial standards and norms
         by which the income,  costs,  and  operations of the  Facilities may be
         evaluated;

                  (h)  Serving as adviser  and  consultant  in  connection  with
         policy decisions to be made by the Companies;

                  (i) Furnishing  such reports to the Companies as the Companies

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         may request,  and providing the Companies with economic and statistical
         data in connection  with or relative to the operation and management of
         the Facilities;

                  (j)   Representing   the   Facilities  in  all  dealings  with
         regulatory  authorities,  creditors,  patients,  personnel,  agents for
         collection and insurers;

                  (k)  Acting  as  agent  for the  Companies  in  disbursing  or
         collecting  the  funds of the  Facilities,  in  paying  the  debts  and
         fulfilling the obligations of the Facilities;

                  (l) Marketing the services of the Facilities; and

                  (m) Generally  seeing to the  operations and management of the
         Facilities,  the marketing of the services  provided at the Facilities,
         planning  for  future  operations  and  establishing  and  implementing
         policies for the Facilities.

         2.3 Certain  Specific  Duties.  In  addition to the general  duties set
forth in Section 2.2 and the other  obligations of the Manager set forth in this
Agreement, the Manager shall have the following specific  responsibilities,  all
of which shall be performed in a manner consistent with the Approved Budgets:

                  2.3.1  Employees.  The Manager  shall  recruit,  evaluate  and
         select qualified nursing home  administrators  who shall be responsible
         for the  functional  operation of the  Facilities  and  supervision  of
         personnel  at the  Facilities,  on a day-to-day  basis,  as well as all
         on-site professional,  custodial, food service, cleaning,  maintenance,
         clerical, secretarial,  bookkeeping,  management,  collection and other
         administrative   personnel  for  the   day-to-day   operations  of  the
         Facilities.  All such  personnel  shall be employees of the Manager and
         the salary and wages, payroll taxes, insurance,  workmen's compensation
         and other benefits of such  administrators and other personnel shall be
         the   responsibility   of,  and  paid  by,  the  Manager,   subject  to
         reimbursement as Facilities Expenses.

                           The Manager shall establish such personnel  policies,
         wage   structures  and  staff  schedules  as  it  deems  necessary  and
         advisable. The Manager shall maintain payroll records and shall prepare
         payrolls and returns of withholding taxes.

                           For purposes of those Facilities located in the State
         of  California,  this  Agreement  is  intended  to serve as an  outside
         resources contract pursuant to California

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         Administrative  Code  Title  22,  Section  72511  and a  copy  of  this
         Agreement  shall remain at each such Facility and shall remain  readily
         available  for  inspection  and  review  by the  Department  of  Health
         Services in accordance with Section 72511 as aforesaid.

                  2.3.2  Purchasing.  The Manager  shall  purchase all supplies,
         foodstuffs, materials, appliances, tools and equipment necessary in the
         operation  of  the  Facilities.  The  Manager  shall  use  commercially
         reasonable efforts to limit purchasing costs and to maintain such costs
         at a level  reasonably  calculated  to allow the  Facilities to operate
         profitably.  The  Manager  may  make  such  purchases  in bulk  under a
         centralized purchasing system established by it for multiple facilities
         under its  management  in order to minimize  costs to the Companies and
         all such  costs may be  allocated  among the  managed  facilities.  The
         Manager  shall  arrange  for  all  contracts  for   electricity,   gas,
         telephone, and any other utility or service necessary for the operation
         of the  Facilities.  The  Manager  shall,  on behalf of the  Companies,
         contract  for  and  supervise  the  making  of any  necessary  repairs,
         alterations and improvements to the Facilities; provided, however, that
         in the case of any major repair,  alteration or improvement (other than
         in the event of  emergency),  the Manager  shall obtain the approval of
         the Companies, unless the same is authorized by the Approved Budgets.

                  2.3.3  Collections,  Accounts,  Disbursements and Investments.
         The Manager shall prepare and submit bills and collect, for the account
         of the Companies,  any and all moneys owing to the  Companies,  whether
         from patients, residents or third party payors.

                  2.3.4 Marketing.  The Manager shall market the services of the
         Facilities  in order to  maintain  the  patient/resident  census at the
         Facilities in such numbers and of such  categories as, in the Manager's
         judgment,  will  tend  to  maintain  the  financial  stability  of  the
         Facilities.

                  2.3.5 Technical and Professional  Services.  The Manager shall
         secure such  engineering,  legal and other  specialized  technical  and
         professional services as may be necessary to advise or to represent the
         Companies in connection with any matter involving or arising out of the
         operation of the Facilities;  provided,  however, that the providers of
         any such services shall be subject to the approval of the Companies.

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                  2.3.6  Patient Care and Quality  Assurance.  The Manager shall
         establish  and  develop  written  policies  and  procedures  to  assure
         protection of patient  rights,  make  recommendations  concerning,  and
         assist in the  establishment  and maintenance of, standards for quality
         control  relating  to the  services  and  treatment  of  residents  and
         patients.  The Manager may conduct practice  inspections and surveys to
         assure the continuance of high standards.

                  2.3.7   Dietary.   The  Manager  shall   recommend,   develop,
         inaugurate  and carry out  practices  and  procedures  with  respect to
         purchasing and dietary control consistent with appropriate standards of
         health care, modern business and management techniques.

                  2.3.8 Plant Maintenance.  The Manager shall monitor and review
         practices and  procedures of the  maintenance,  engineering,  security,
         housekeeping  and related  services and shall  implement,  maintain and
         supervise   inspections   (interior  and  exterior)  and   preventative
         maintenance programs with respect to the Facilities.

                  2.3.9   Accounting.   The  Manager   shall   review  and  make
         recommendations concerning claims filings, patient billings, admissions
         policies concerning credit,  deposits and uncompensated care agreements
         and provide for payment of accounts payable,  employee payrolls, taxes,
         insurance premiums and other obligations of the Facilities. The Manager
         shall establish an accounting system to record all business activity in
         order to provide  financial  reporting  as  required  by Article 4. The
         Manager  will prepare or arrange for timely  reporting to  governmental
         agencies  and  to  the  Companies  as  may  be  required  by  law,  for
         reimbursement  purposes  or as the  Companies  may  from  time  to time
         reasonably require.

                  2.3.10  Compliance  with Law.  The Manager  shall keep in full
         force and  effect all  licenses,  permits,  approvals,  authorizations,
         provider   agreements  and  certificates  or   determinations  of  need
         necessary  for the  Companies and the Manager to occupy and operate the
         Facilities. The Manager shall not take or omit to take any action which
         jeopardizes  any such  licenses,  permits,  approvals,  authorizations,
         provider agreements or certificates or determinations of need.

         2.4 Standard of Care.  The Manager  shall use  commercially  reasonable
efforts  and act in good faith and in a  professional

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manner in  rendering  the  services  called for  hereunder  in  accordance  with
prevailing  standards  of  the  health  care  /congregate  care/assisted  living
industry, as the case may be, and shall render the services called for hereunder
in good faith and with a duty of care.

         2.5 Authority of the Manager.  Subject to the terms and  conditions set
forth in this Agreement,  the parameters established by the Approved Budgets and
the policies from time to time  established by the Companies,  the Manager shall
have the  authority,  control  and  discretion  with  regard  to the  operation,
administration  and  management  of the  business,  policies,  and assets of the
Facilities  (including,  without  limitation,  the  exercise  of its  rights and
performance  of its duties  provided  for in Sections  2.1, 2.2 and 2.3) and the
right to determine all operating policies affecting the appearance, maintenance,
personnel,  standards of  operation,  quality of services,  and any other matter
affecting the Facilities or the operation of the Facilities.

                                   ARTICLE 3

                                    INSURANCE

         3.1 Maintenance of Companies'  Insurance.  The Manager shall obtain, on
behalf of the  Companies  and as an expense  of the  Facilities,  all  necessary
liability and property insurance covering the Facilities,  any equipment used in
connection  with  the  Facilities,   and  the  Companies,   including,   without
limitation,  all insurance  required to be maintained by the Companies under any
Facility Leases in accordance with the terms and provisions thereof.

         3.2 Manager's  Insurance.  The Manager shall maintain such insurance as
is  customarily  obtained  by  prudent  managers  of  facilities  similar to the
Facilities,  including,  without limitation,  workmen's  compensation  insurance
covering the employees at the Facilities.

         3.3 Indemnification of Manager.  The Companies shall indemnify,  defend
and hold  harmless the Manager for, from and against any cost,  loss,  damage or
expense (including, but not limited to, reasonable attorneys' fees and all court
costs and other expenses of litigation,  whether or not taxable under local law)
unless arising from the gross  negligence or willful  misconduct in carrying out
the Manager's duties under this Agreement, whether on the part of the Manager or
its  officers,   employees,   agents  or   representatives,   except  that  such

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indemnification  shall apply to instances  of gross  negligence  and/or  willful
misconduct to the extent such matters are insurable.

                                   ARTICLE 4

                           REPORTING AND RECORDKEEPING

         4.1 Maintenance of Records,  Etc. As a part of the Facilities  Records,
the Manager  shall develop and maintain on a current basis a system of accounts,
data processing and payroll  processing systems and a document filing system, as
well as procedures for recording  accounts payable and receivable,  with respect
to the  Facilities  and  performance  of the  Manager's  obligations  under this
Agreement,  which  systems  and  procedures  shall at all  times  be  reasonably
satisfactory to the Companies. All Facilities Records shall be maintained at the
Facilities, at the Manager's principal place of business or regional offices, or
at such other  location  as may be  mutually  agreed upon by the Manager and the
Companies.

         4.2 Companies'  Property;  Continuing  Access.  All Facilities  Records
received  and/or  maintained by the Manager  pursuant to this  Agreement are and
shall remain the property of the Companies  and, upon  termination or expiration
of this Agreement for any reason  whatsoever,  shall be promptly  turned over to
the Companies.  For the time and to the extent  required by applicable  law, the
Manager shall retain and permit the  Comptroller  General of the United  States,
the United States Department of Health and Human Services,  and their respective
duly authorized  representatives access to examine or copy this Agreement and to
such books,  documents  and records as are  reasonably  necessary  to verify the
nature and extent of the costs of the services supplied under this Agreement. In
the event the Manager provides any of its services under this Agreement pursuant
to a subcontract  and if (x) the services  provided  pursuant to the subcontract
have a value or cost of Ten  Thousand  Dollars  ($10,000)  or more over a twelve
(12) month period and (y) the  subcontract is with a related  organization,  the
Manager  shall  cause  such  subcontract  to  contain  a  clause  requiring  the
subcontractor  to retain and allow  access to its  records on the same terms and
conditions  as required  by the  Manager  pursuant  to this  Section  4.2.  This
provision  shall  be  null  and  void  should  it  be  determined  that  Section
1861(V)(1)(I) of the Social Security Act is not applicable to this Agreement.

         4.3 Companies' Audit Rights. The Manager shall cooperate with, and make
all Facilities Records available to, any auditor,

                                      -9-
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independent  accountant,  agent or other person  designated from time to time by
the Companies and the Companies shall at all times have the right to conduct, or
cause to be conducted,  audits and examinations of the Facilities  Records.  The
cost of all such audits and examinations shall be Facilities Expenses.

         4.4 Required Reports, Etc.

                  (a) Annual Budget. The Manager shall prepare and submit to the
         Companies  for the  Companies'  approval,  prior  to the  start of each
         Fiscal Year for the ensuing Fiscal Year, with respect to each Facility,
         an operating budget, on an accrual basis, with respect to such Facility
         during  the  ensuing  calendar  year.  The  Companies  shall  have  the
         opportunity to review such operating budgets and the Manager shall make
         such changes and adjustments thereto as the Companies may require (such
         operating   budgets,   upon   approval   thereof   by  the   Companies,
         collectively, the "Approved Budgets").

                  The Manager agrees to use commercially  reasonable  efforts to
         manage and operate  each  Facility in  accordance  with the  applicable
         Approved Budget with respect to such Facility.

                  The  Manager  shall  further   prepare  and  propose  for  the
         Companies' approval from time to time such additional  revisions to the
         Approved  Budgets as may  reasonably be required to reflect  changes in
         costs or expenditures in management and operation of the Facilities.

                  (b) Other  Reports.  The Manager  shall prepare and furnish to
         the Companies,  with respect to each Facility,  such  information  with
         respect  thereto  as the  Companies  may from  time to time  reasonably
         require.

         4.5  Supporting  Documentation.   As  additional  support  to  required
reporting information under this Agreement,  the Manager shall, at the Company's
request,  provide  copies of (a) all bank  statements and  reconciliations,  (b)
detailed cash receipts and  disbursement  records,  (c) general ledger listings,
(d) copies of invoices for  expenditures,  (e)  summaries  of adjusting  journal
entries,  (f) copies of all paid bills, (g) all information  required to prepare
state and federal tax returns on a timely basis,  and (h) such other  supporting
documentation as the Companies may reasonably require.

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                                   ARTICLE 5

                                  BANK ACCOUNTS

         5.1 Facilities Accounts. Except as otherwise directed by the Companies,
the Manager shall  deposit all revenues  received by the Manager with respect to
the Facilities,  and pay all Facilities Expenses from, one or more bank accounts
established for the Facilities  (collectively,  the "Facilities Accounts").  The
system  of  accounts  for  the   Facilities   and  the   applicable   depository
institution(s)  shall be approved by the Companies  and the  Companies  shall be
given written notice of the account number and location of each such account. In
no event  shall any  Facilities  Account be  commingled  with any account of the
Manager.  The Facilities  Accounts may be commingled one with the other in order
to  facilitate  efficient  pooled  cash  management,   provided  the  depository
institution or the Manager  maintains records showing the separate value of each
Company's  ownership of these accounts.  The Companies may direct the Manager to
change any depository institution or depository arrangement at any time.

         5.2  Access  to  Accounts,  Etc.  Authorized   representatives  of  the
Companies  shall at all times have  access to the  Facilities  Accounts  and the
contents thereof. The Companies shall notify the Manager of any withdrawals made
by the  Companies  from such bank  accounts.  The  Manager's  authority  to draw
against the  Facilities  Accounts may be  terminated  by the  Companies  without
notice to the Manager upon any  termination  of this  Agreement  or, if earlier,
upon the occurrence of any default with respect to the Manager.

                                   ARTICLE 6

                               PAYMENT OF EXPENSES

         6.1 Costs  Eligible  for Payment  from  Facilities  Account,  Etc.  The
Manager  shall  pay,  directly  from  the  Facilities  Account,  all  Facilities
Expenses.

         6.2 Excluded Manager Costs.  The following  expenses and costs incurred
by or on behalf of the  Manager  shall be at the sole  cost and  expense  of the
Manager and shall not be paid from the Facilities  Accounts  except as otherwise
provided with respect to the Prior Arrangements:

                  (a) the training  and hiring  expenses and any costs of salary
         and wages, payroll taxes,  insurance,  workmen's

                                      -11-
<PAGE>

         compensation  and other  benefits  of the  Manager's  home  office  and
         regional  staff  except for the  portion of such costs as are  properly
         allocable to the Facilities;

                  (b) the cost of the  Manager's  overhead,  including,  without
         limitation,  office  rent,  telephone,   telecopy,  courier,  expedited
         delivery  and postage  charges,  office  supplies  and  equipment,  and
         miscellaneous expenses;  provided, however, that telephone, courier and
         expedited  delivery expenses and costs incurred with respect to matters
         specific   to  the   Facilities   (such  as  the  cost,   of   required
         Medicaid/Medicare  reports and the Companies' and the  Facilities'  tax
         returns),  properly attributable to the operation of the Facilities, as
         distinguished from the Manager's overall operations, may, to the extent
         separately itemized, be paid from the Facilities Accounts; and

                  (c) political or charitable contributions,  unless approved by
         the Companies.

         The Manager shall  indemnify  and hold the Companies  harmless from any
and all liability with respect to any of the above costs and expenses.

         6.3 Insufficient  Funds.  If, at any time, the Manager  determines that
there are not,  or are  projected  not to be within the next  thirty  (30) days,
sufficient  funds within the Facilities  Account to pay all Facilities  Expenses
which may be incurred, the Manager shall promptly inform the Companies.

         The Manager shall have no obligation to expend its own funds in payment
of expenses and  liabilities  with respect to the  Facilities  (other than those
costs and expenses specified in Section 6.2 hereof to be the Manager's costs and
expenses),  and the  Manager  shall not be in default  under this  Agreement  by
reason of any  failure  to pay any such  expenses  and  liabilities  or take any
action due to a lack of funds in the Facilities Account.

                                   ARTICLE 7

                         COMPENSATION; TERM; TERMINATION

         7.1 Management Fee. As compensation  for the services to be rendered by
the Manager  during the term of this  Agreement,  the Manager  shall receive the
Management Fee. The Management Fee shall be payable monthly,  in arrears, on the
last day of each calendar month.

                                      -12-
<PAGE>

         7.2 Term.  This Agreement shall commence on the date hereof and, unless
sooner   terminated  as  herein  provided,   shall  expire  December  31,  2001.
Thereafter,  this  Agreement  shall  be  automatically  renewed  for  successive
one-year periods. Notwithstanding the foregoing, either party may terminate this
Agreement,  with  respect  to one or more of the  Facilities,  by the  giving of
thirty (30) days prior written notice thereof to the non-terminating  party. Any
notice  of  termination   shall  designate  the  Facilities  as  to  which  such
termination shall apply and the effective date of termination.

         7.3 Fees on Termination  or Expiration.  In the event of termination or
expiration  of this  Agreement,  the  Manager  shall be  entitled to receive any
Management  Fee accrued  and unpaid  through  the date of  termination  plus the
unamortized  costs of all capital  expenditures  made by the Manager in order to
provide services under this Agreement.

         7.4 Orderly Transition.  The Manager shall cooperate with the Companies
to assist in an  orderly  transition  of the  management  and  operation  of the
Facilities to a successor or to any representative of the Companies.

                                   ARTICLE 8

                                  MISCELLANEOUS

         8.1  Limitation  on  Assignment.  Neither  the  Manager  nor any of the
Companies  shall  suffer  or permit  any,  direct or  indirect,  transfer  of or
encumbrance upon its interest in this Agreement.

         8.2 Other  Business,  Etc. The Manager may manage  facilities for third
parties  (other than the  Companies),  which may  include,  without  limitation,
management of facilities which may be competitive with the Facilities.

                  The Companies and their  affiliates may use any other managers
to manage the Facilities or other facilities owned or leased by the Companies or
their  affiliates,  as the  Companies  may,  from  time to time,  in their  sole
discretion, determine.

         8.3 Notices.

                  (a) Any and all written notices, demands, consents, approvals,
         offers,  elections and other communications required or permitted under
         this Agreement shall be deemed  adequately  given if in writing and the
         same shall be delivered  either in hand, by telecopier  with  confirmed

                                      -13-
<PAGE>

         receipt, or by mail or Federal Express or similar expedited  commercial
         carrier,  addressed  to the  recipient  of such  notice,  postpaid  and
         registered or certified with return receipt  requested (if by mail), or
         with all  freight  charges  prepaid  (if by Federal  Express or similar
         carrier).

                  (b) All  written  notices  required  or  permitted  to be sent
         hereunder  shall be deemed to have been given for all  purposes of this
         Agreement upon the date of confirmed  receipt,  in the case of a notice
         by  telecopier,  and, in all other  cases,  upon the date of receipt or
         refusal,  except that whenever  under this Agreement a notice is either
         received  on a day which is not a  Business  Day or is  required  to be
         delivered on or before a specific day which is not a Business  Day, the
         day of receipt or required delivery shall  automatically be extended to
         the next Business Day.

                  (c) All such notices shall be addressed:

         if to any Company, to:

                  400 Centre Street
                  Newton, MA  02458
                  Attn:  Mr. David J. Hegarty
                  [Telecopier No. (617) 796-8349]

         if to the Manager, to:

                  400 Centre Street
                  Newton, MA  02458
                  Attn:  Mr. Evrett Benton
                  [Telecopier No. (617)796-8385]

                  (d) By notice given as herein provided, the parties hereto and
         their respective  successors and assigns shall have the right from time
         to time and at any time  during  the term of this  Agreement  to change
         their respective  addresses effective upon receipt by the other parties
         of such  notice and each shall have the right to specify as its address
         any other address within the United States of America.

                  (e) If under this  Agreement  the failure of the  recipient to
         respond to any notice within a specified  period of time is intended to
         constitute  deemed  consent,  approval,  disapproval or other action by
         such recipient,  it shall be a condition of the  effectiveness  of such
         notice that the same include a conspicuous  statement of the

                                      -14-
<PAGE>

         applicable  response  period  and the  effect of a failure  to  respond
         within such period.

         8.4 Successors and Assigns,  Etc. Whenever in this Agreement any of the
parties  hereto is referred  to, such  reference  shall be deemed to include the
successors and assigns of such party and all covenants and agreements  which are
contained  in this  Agreement  shall be binding upon and inure to the benefit of
the respective successors and assigns of the parties hereto.

         8.5 Severability.  In case any one or more of the provisions  contained
in this Agreement  should be invalid,  illegal or  unenforceable in any respect,
the validity,  legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby,  but this Agreement
shall be reformed and construed and enforced to the maximum extent  permitted by
applicable law.

         8.6 Entire  Contract.  This Agreement  constitutes the entire agreement
between the parties  hereto with respect to the subject  matter hereof and shall
supersede  and  take the  place of any  other  instruments  purporting  to be an
agreement of the parties hereto relating to the subject matter hereof.

         8.7 Headings; Counterparts. Headings in this Agreement are for purposes
of reference  only and shall not limit or otherwise  affect the meaning  hereof.
This  Agreement  may be  executed in any number of  counterparts,  each of which
shall be an original, but all of which together shall constitute one instrument,
and in pleading  or proving any  provision  of this  Agreement,  it shall not be
necessary to produce more than one of such counterparts.

         8.8 Relationship of Parties.  The Manager is an independent  contractor
and is not to be considered a partner, joint venturer or other type of principal
with respect to ownership of any portion of or interest in the Facilities or any
right, title or interest of the Companies therein.

         8.9 Governing  Law. This  Agreement  shall be  interpreted,  construed,
applied  and  enforced  in  accordance  with  the  laws of The  Commonwealth  of
Massachusetts  applicable to contracts between residents of Massachusetts  which
are to be performed entirely within Massachusetts,  regardless of (i) where this
Agreement  is  executed  or  delivered;  or (ii)  where  any  payment  or  other
performance  required by this Agreement is made or required to be made; or (iii)
where any breach of any  provision  of this

                                      -15-
<PAGE>

Agreement  occurs, or any cause of action otherwise  accrues;  or (iv) where any
action or other  proceeding is instituted  or pending;  or (v) the  nationality,
citizenship,   domicile,   principal  place  of  business,  or  jurisdiction  of
organization  or  domestication  of any party;  or (vi)  whether the laws of the
forum  jurisdiction  otherwise would apply the laws of a jurisdiction other than
The  Commonwealth of  Massachusetts;  or (vii) any combination of the foregoing.
Notwithstanding the foregoing,  the laws of the jurisdiction where a Facility is
located shall apply, to the extent required by the laws of such jurisdiction, to
matters relating to interests in real property or title thereto.

         To the  maximum  extent  permitted  by  applicable  law,  any action to
enforce,  arising out of, or relating  in any way to, any of the  provisions  of
this  Agreement may be brought and  prosecuted in such a court or courts located
in The  Commonwealth  of  Massachusetts  as is provided by law;  and the parties
consent to the  jurisdiction of said court or courts located in The Commonwealth
of Massachusetts  and to service of process by registered  mail,  return receipt
requested, or by any other manner provided by law.

         8.10  Modification  of Agreement.  This  Agreement may not be modified,
altered or amended in any manner except by an amendment in writing duly executed
by the parties hereto.  Additional  facilities may be added to the scope of this
Agreement by  substituting  for Exhibit A to this Agreement a revised  Exhibit A
including such  facilities,  provided that such  replacement  Exhibit A shall be
initialed by the Companies and the Manager.

         8.11 Effective  Date. The effective date of this Agreement with respect
to any Facility  shall be the date on which such  Facility  shall be included in
Exhibit  A.  Additional  Persons  constituting  Companies  may be  added to this
Agreement  provided  that  such new  Person  signs  the  signature  page to this
Agreement and such signature is acknowledged by the Manager.

         IN WITNESS  WHEREOF,  the parties  hereto have executed this  Agreement
under seal as of the date above first written.

                                      -16-
<PAGE>

                                    COMPANIES:

                                    [Names of Companies]

                                    MANAGER:

                                    FIVE STAR QUALITY CARE, INC.

                                    By:      _____________________________
                                             Its (Vice) President

                                      -17-

<PAGE>
                                   Exhibit A

Facilities                                                  Effective Dates
----------                                                  ---------------Exhibit 10.21

                            THIRD AMENDMENT OF LEASE

         This Third Amendment of Lease (this  "Amendment") is made this 4 day of
August, 2000, between SPTMRT Properties Trust, a Maryland real estate investment
trust  ("Landlord"),  and  Marriott  Senior  Living  Services,  Inc., a Delaware
corporation ("Tenant").

                                    Recitals:

         A.       Whereas, HMH PROPERTIES,  INC., a Delaware corporation ("HMH")
                  as Landlord and Marriott Senior Living Services, Inc. ("MSLS")
                  as Tenant entered into that certain Facilities Lease Agreement
                  for the Marriott  Senior  Living  Services  Facilities of Boca
                  Pointe, Palm Beach County, Boca Raton,  Florida, on October 8,
                  1993,  which Facilities Lease Agreement was amended on May 16,
                  1994 and October 10, 1997 (said Facilities Lease Agreement, as
                  so amended hereinafter referred to as the "Lease"); and

         B.       Whereas,  pursuant to the terms of that certain Assignment and
                  Assumption of Leases,  Guarantees and Permits  between HMH and
                  HRPT Properties Trust, formally known as Health and Retirement
                  Properties  Trust,  a Maryland  real estate  investment  trust
                  ("HRPT"),  dated  May 13,  1994,  HRPT  assumed  all of  HMH's
                  rights, title and interest in and to the Lease; and

         C.       Whereas, on or about June 30, 1999, HRPT assigned the Lease to
                  Landlord; and

         D.       Whereas,   subsequent  to  the   Commencement   Date,   Tenant
                  constructed  certain  Improvements  on the  Land  that  was an
                  Expansion and the parties are desirous of selecting a date for
                  the   commencement  of  construction  of  said  Expansion  and
                  amending  the  Lease on the  terms  and  conditions  set forth
                  herein.

         Now,  therefore,   in  consideration  of  the  mutual  obligations  and
agreements  set forth  below,  the  sufficiency  and receipt of which are hereby
acknowledged, Landlord and Tenant agree as follows:

                  1.       Section  5.06(B) of the Lease is hereby  modified  by
                           the following:

                           "Expansion Rental shall be paid in lieu of Percentage
                           Rental   commencing   with   Fiscal   Year  1999  and
                           continuing  throughout  the  remaining  Term  of  the
                           Lease. For Fiscal Year 1999 and for Fiscal Year 2000,
                           the  Expansion  Rental shall be  calculated as if the
                           commencement   of   construction   of  the  Expansion
                           occurred in Fiscal Year 1996.  Commencing with Fiscal
                           Year 2001 and thereafter,  Expansion  Rental shall be
                           calculated as if the  commencement of construction of
                           the Expansion occurred in Fiscal Year 1997.

                  2.       Section 5.03 shall be amended by adding the following
                           new section:

<PAGE>

                           "C. Commencing with the third Fiscal Quarter of 2000,
                           Tenant shall,  within forty-five (45) days of the end
                           of each Fiscal Quarter  furnish to Landlord a report,
                           for the immediately preceding Fiscal Quarter and year
                           to date, which shall include the following:

                           A.       A schedule of revenue by type of unit (i.e.,
                                    assisted living,  specialcare,  and nursing)
                                    and by source  (i.e.,  Medicare  or  private
                                    pay);

                           B.       A schedule  of the  occupancy  and number of
                                    each  type of unit  at the  Premises  (i.e.,
                                    assisted living, special care and nursing);

                           C.       A schedule of operating expenses by category
                                    including real estate taxes; and

                           D.       Such  other   financial   information   that
                                    Landlord may reasonably request from time to
                                    time, provided however, that such additional
                                    financial  information requested by Landlord
                                    must be of the type and nature  that  Tenant
                                    generally  provides  to other  Owners of its
                                    leased senior living  communities.  Attached
                                    hereto as Exhibit A is the form of reporting
                                    that Tenant currently provides to its owners
                                    and will serve as the  initial  form for the
                                    reporting  to  Landlord   pursuant  to  this
                                    Section 5.03(C)."

                  3.       All  capitalized  terms not defined herein shall have
                           the meaning set forth on the Lease; and

                  4.       Any conflict between the terms and conditions of this
                           Amendment and the Lease shall be resolved in favor of
                           this Amendment; and

                  5.       Other than as modified  herein,  all of the terms and
                           provisions  of this Lease shall  remain in full force
                           and effect.

         IN WITNESS  WHEREOF,  Landlord and Tenant have  executed and  delivered
this Amendment on the date first hereinabove set forth.

                                         TENANT

Attest:                                  Marriott Senior Living Services, Inc.
                                         a Delaware corporation

By: /s/ Michael J. Stein                 By: /s/ Michael J. Giacopelli, Jr.
    ---------------------------------        -----------------------------------
    Name:    Michael J. Stein                Name:    Michael J. Giacopelli, Jr.
    Title:   Assistant Secretary             Title:   Vice President

                                         [SEAL]

<PAGE>

                                         LANDLORD

Attest:                                  SPTMRT Properties Trust
                                         a Maryland real estate trust

By: /s/ Jennifer B. Clark                By: /s/ David J. Hegarty
    ---------------------------------        -----------------------------------
    Name:                                    Its: President

                                         [SEAL]

                                         GUARANTOR

Attest:                                  Marriott International, Inc.
                                         a Delaware corporation

By: /s/ Edward L. Bednarz                By: /s/ Myron D. Walker
    ---------------------------------        -----------------------------------
    Name:    Edward L. Bednarz               Name:    Myron D. Walker
    Title:   Assistant Secretary             Title:   Vice President

                                         [SEAL]

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