Document:

EX10_1

		

			Exhibit 10.1

		

		

			 

		

		
			PARTIAL TERMINATION OF AND ELEVENTH AMENDMENT TO
AMENDED AND RESTATED MASTER LEASE AGREEMENT
(LEASE NO. 1)
		

		
			THIS PARTIAL TERMINATION OF AND ELEVENTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO. 1) (this "Amendment") is made and entered into as of October 1, 2014 by and among each of the parties identified on the signature pages hereof as a landlord (collectively, "Landlord") and each of the parties identified on the signature pages hereof as a  tenant  (jointly and severally, "Tenant").
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, pursuant to the terms of that certain Amended and Restated Master Lease Agreement (Lease No. 1), dated as of August 4, 2009, as amended by that certain Partial Termination of and First Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of October 1, 2009, that certain Second Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of November 17, 2009, that certain Third Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of December 10, 2009, that certain Partial Termination of and Fourth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of August 1, 2010, that certain Fifth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of May 1, 2011,  that certain Partial Termination of and Sixth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of June 1, 2011, that certain Seventh Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of June 20, 2011,  that certain Eighth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of August 31, 2012, that certain Partial Termination of and Ninth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of August 1, 2013, and that certain Partial Termination of and Tenth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of January 22, 2014 (as so amended, "Amended Lease No. 1"),  Landlord leases to Tenant, and Tenant leases from Landlord, the Leased Property (this and other capitalized terms used but not otherwise defined herein having the meanings given such terms in Amended Lease No. 1), all as more particularly described in Amended Lease No. 1; and
		

		
			WHEREAS, simultaneously herewith, SNH CHS Properties Trust is selling a portion of the Leased Property consisting of the real property and related improvements known as Heartfields of Richmond and located at 501 North Allen Avenue, Richmond, Virginia,  as more particularly described on Exhibit A-47 to Amended Lease No. 1 (the "Richmond Property"); and
		

		
			WHEREAS, in connection with the foregoing,  SNH CHS Properties Trust and the other entities comprising Landlord and Five Star Quality Care Trust and the other entities comprising Tenant wish to amend Amended Lease No. 1 to terminate Amended Lease No. 1 with respect to the Richmond Property;
		

		
			NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree that, effective as of the date hereof, Amended Lease No. 1 is hereby amended as follows:
		

		 

 

			
	
			
				 1.
			Partial Termination of Amended Lease No. 1.  Amended Lease No. 1 is terminated with respect to the Richmond Property and neither Landlord nor Tenant shall have any further rights or liabilities thereunder with respect to the Richmond Property from and after the date hereof, except for those rights and liabilities which by their terms survive the termination of Amended Lease No. 1.

		
			 
		

			
	
			
				 2.
			Definition of Minimum Rent.  The defined term "Minimum Rent" set forth in Section 1.68 of Amended Lease No. 1 is deleted in its entirety and replaced with the following:

		
			 
		

		
			"Minimum Rent"  shall mean the sum of Fifty-Nine Million Thirty-Five Thousand Twenty-Four and 19/100 Dollars ($59,035,024.19) per annum.
		

		
			 
		

			
	
			
				 3.
			Schedule 1.  Schedule 1 to Amended Lease No. 1 is deleted in its entirety and replaced with Schedule 1 attached hereto.

		
			 
		

			
	
			
				 4.
			Exhibit A.  Exhibit A to Amended Lease No. 1 is amended by (a) deleting the text of Exhibit A-47 attached thereto in its entirety and replacing it with “Intentionally Deleted”.

		
			 
		

			
	
			
				 5.
			Ratification.  As amended hereby, Amended Lease No. 1 is hereby ratified and confirmed.

		
			 
		

		
			 
		

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

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		

			 

		

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

		
			 
		

		
			LANDLORD:
		

		
			SNH SOMERFORD PROPERTIES TRUST
SPTMNR PROPERTIES TRUST
SNH/LTA PROPERTIES TRUST
SPTIHS PROPERTIES TRUST
SNH CHS PROPERTIES TRUST
SNH/LTA PROPERTIES GA LLC
		

		
			 
		

		
			By:/s/ David J. Hegarty
		

		
			David J. Hegarty
		

		
			President of each of the foregoing entities
		

		
			 
		

		
			 
		

		
			MSD – MACON, LLC
		

		
			MSD – BEAUFORT, LLC 
		

		
			MSD – CAMDEN, LLC
		

		
			MSD – HARTSVILLE, LLC
		

		
			MSD – LEXINGTON, LLC
		

		
			MSD – ORANGEBURG, LLC
		

		
			MSD – SENECA, LLC
		

		
			MSD – CULLMAN, LLC
		

		
			MSD – MADISON, LLC
		

		
			MSD – SHEFFIELD, LLC
		

		
			MSD – BOWLING GREEN, LLC
		

		
			MSD – PADUCAH, LLC
		

		
			MSD – CONYERS, LLC
		

		
			MSD – GAINESVILLE, LLC
		

		
			MSD – CLEVELAND, LLC
		

		
			MSD – COOKEVILLE, LLC
		

		
			MSD – JACKSON, LLC
		

		
			MSD – KNOXVILLE, LLC 
		

		
			MSD – FRANKLIN, LLC
		

		
			MSD – HOPKINSVILLE, LLC
		

		
			 
		

		
			 
		

		
			 
		

		
			By: /s/ David J. Hegarty
		

		
			       David J. Hegarty
		

		
			       President of each of the foregoing entities
		

		
			 
		

		

		

		 

		

			[Signature Page: Partial Termination of and Eleventh Amendment to Amended and Restated Master Lease Agreement (Lease No. 1)]

		

 

		 
		

		
			 
		

		
			TENANT:
		

		
			FIVE STAR QUALITY CARE TRUST
MORNINGSIDE OF KNOXVILLE, LLC
MORNINGSIDE OF FRANKLIN, LLC

		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			Bruce J. Mackey Jr.
		

		
			President of each of the foregoing entities
		

		
			 
		

		
			MORNINGSIDE OF MACON, LLC
		

		
			MORNINGSIDE OF SENECA, L.P.
		

		
			MORNINGSIDE OF HOPKINSVILLE, LIMITED PARTNERSHIP
		

		
			 
		

		
			By:  LIFETRUST AMERICA, INC., 
a Tennessee corporation, its General Partner/Member (as applicable)
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			      Bruce J. Mackey Jr.
		

		
			      President and Chief Executive Officer
		

		
			 
		

		
			 
		

		
			MORNINGSIDE OF BEAUFORT, LLC
MORNINGSIDE OF CAMDEN, LLC
		

		
			MORNINGSIDE OF HARTSVILLE, LLC
		

		
			MORNINGSIDE OF LEXINGTON, LLC
		

		
			MORNINGSIDE OF ORANGEBURG, LLC
		

		
			 
		

		
			By:  MORNINGSIDE OF SOUTH CAROLINA, L.P., a Delaware limited partnership, its Sole Member
		

		
			 
		

		
			By:LIFETRUST AMERICA, INC., 
a Tennessee corporation, its General Partner
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			      Bruce J. Mackey Jr.
		

		
			President and Chief Executive Officer
		

		

		

		 

		

			[Signature Page: Partial Termination of and Eleventh Amendment to Amended and Restated Master Lease Agreement (Lease No. 1)]

		

		

			 

		

 

		MORNINGSIDE OF CULLMAN, LLC
MORNINGSIDE OF MADISON, LLC
		

		
			MORNINGSIDE OF SHEFFIELD, LLC
		

		
			 
		

		
			By:  MORNINGSIDE OF ALABAMA, L.P., a Delaware limited partnership, its Sole Member
		

		
			 
		

		
			By:  LIFETRUST AMERICA, INC., 
a Tennessee corporation, its General Partner
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			Bruce J. Mackey Jr.
		

		
			      President and Chief Executive Officer
     
		

		
			 
		

		
			 
		

		
			MORNINGSIDE OF BOWLING GREEN, LLC
MORNINGSIDE OF PADUCAH, LLC
		

		
			 
		

		
			By:  MORNINGSIDE OF KENTUCKY, LIMITED PARTNERSHIP, a Delaware limited partnership, its Sole Member
		

		
			 
		

		
			By:  LIFETRUST AMERICA, INC., 
a Tennessee corporation, its General Partner
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			      Bruce J. Mackey Jr.
		

		
			President and Chief Executive Officer
		

		
			 
		

		
			 
		

		

		

		 

		

			[Signature Page: Partial Termination of and Eleventh Amendment to Amended and Restated Master Lease Agreement (Lease No. 1)]

		

		

			 

		

 

		MORNINGSIDE OF CONYERS, LLC
MORNINGSIDE OF GAINESVILLE, LLC
		

		
			 
		

		
			By:  MORNINGSIDE OF GEORGIA, L.P., a Delaware limited partnership, its Sole Member
		

		
			 
		

		
			By:  LIFETRUST AMERICA, INC., 
a Tennessee corporation, its General Partner
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			      Bruce J. Mackey Jr.
		

		
			President and Chief Executive Officer
		

		
			 
		

		
			 
		

		
			MORNINGSIDE OF CLEVELAND, LLC
MORNINGSIDE OF COOKEVILLE, LLC
		

		
			MORNINGSIDE OF JACKSON, LLC
		

		
			 
		

		
			By:  MORNINGSIDE OF TENNESSEE, LLC, a Delaware limited liability company, its Sole Member
		

		
			 
		

		
			 
		

		
			By:/s/ Bruce J. Mackey Jr.
		

		
			      Bruce J. Mackey Jr.
		

		
			      President and Chief Executive Officer
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			[Signature Page: Partial Termination of and Eleventh Amendment to Amended and Restated Master Lease Agreement (Lease No. 1)]

		

		

			 

		

 

		 
		

		
			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

					
					
						$3,092,467

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-4

					
					
						Somerford Place - Fresno

					
						6075 North Marks Avenue

					
						Fresno, CA  93711

					
					
						2009

					
					
						$3,424,896

					
					
						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

					
					
						$3,065,084

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-7

					
					
						Somerford Place - Roseville

					
						110 Sterling Court

					
						Roseville, CA  95661

					
					
						2009

					
					
						$2,802,082

					
					
						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%

				
	
					
						A-12

					
					
						Somerford House and Somerford Place – Newark I & II

					
						501 South Harmony Road and

					
						4175 Ogletown Road

					
						Newark, DE  19713

					
					
						2009

					
					
						$6,341,636

					
					
						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

					
					
						Intentionally Deleted.

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						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.

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						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

					
					
						$3,917,902

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-25

					
					
						Somerford Place - Columbia

					
						8220 Snowden River Parkway

					
						Columbia, MD  21045

					
					
						2009

					
					
						$3,221,426

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-26

					
					
						Somerford Place - Frederick

					
						2100 Whittier Drive

					
						Frederick, MD  21702

					
					
						2009

					
					
						$5,088,592

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-27

					
					
						Somerford Place - Hagerstown

					
						10114 & 10116 Sharpsburg Pike

					
						Hagerstown, MD  21740

					
					
						2009

					
					
						$4,066,761

					
					
						03/31/2008

					
					
						8%

				
	
					
						A-28

					
					
						The Wellstead of Rogers 

					
						20500 and 20600 

					
						South Diamond Lake Road

					
						Rogers, MN  55374

					
					
						2009

					
					
						$12,646,616

					
					
						03/01/2008

					
					
						8%

				
	
					
						A-29

					
					
						Intentionally Deleted.

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						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 Avenue

					
						Central City, NE  68462

					
					
						2005

					
					
						$2,005,732

					
					
						12/31/2001

					
					
						10%

				
	
					
						A-35

					
					
						Intentionally deleted.

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				

		
			 
		

		 

		

			 

		

 

			
					
						A-36

					
					
						Gretna Community Living Center

					
						700 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

					
					
						Intentionally deleted.

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						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%

				
	
					
						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

					
					
						Intentionally Omitted

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						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

					
					
						$2,170,645

					
					
						01/04/2008

					
					
						8%

				
	
					
						A-50

					
					
						Meadowmere - 

Madison Assisted Living

					
						5601 Burke Road

					
						Madison, WI  53718

					
					
						2009

					
					
						$2,136,654

					
					
						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

					
					
						$12,348,104

					
					
						01/04/2008

					
					
						8%

				
	
					
						A-53

					
					
						Laramie Care Center

					
						503 South 18th Street

					
						Laramie, WY  82070

					
					
						2005

					
					
						$4,473,949

					
					
						12/31/2001

					
					
						10%

				

		
			 
		

		 

		

			 

		

 

			
					
						A-54

					
					
						Haven in Highland Creek

					
						5920 McChesney Drive

					
						Charlotte, NC  28269

					
						 

					
						Laurels in Highland Creek 
6101 Clark Creek Parkway 

					
						Charlotte, NC  28269

					
					
						2010

					
					
						$6,454,157

					
					
						11/17/2009

					
					
						8.75%

				
	
					
						A-55

					
					
						Haven in the Village 

at Carolina Place

					
						13150 Dorman Road 

					
						Pineville, NC  28134

					
						 

					
						Laurels in the Village

					
						at Carolina Place

					
						13180 Dorman Road 

					
						Pineville, NC  28134

					
					
						2010

					
					
						$7,052,425

					
					
						11/17/2009

					
					
						8.75%

				
	
					
						A-56

					
					
						Haven in the Summit

					
						3 Summit Terrace 

					
						Columbia, SC  29229

					
					
						2010

					
					
						$2,308,737

					
					
						11/17/2009

					
					
						8.75%

				
	
					
						A-57

					
					
						Haven in the Village at Chanticleer 
355 Berkmans Lane 

					
						Greenville, SC  29605

					
					
						2010

					
					
						$2,197,919

					
					
						11/17/2009

					
					
						8.75%

				
	
					
						A-58

					
					
						Intentionally Deleted

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						A-59

					
					
						Haven in Stone Oak 
511 Knights Cross Drive

					
						San Antonio, TX  78258

					
						 

					
						Laurels in Stone Oak 

					
						575 Knights Cross Drive San Antonio, TX  78258

					
					
						2010

					
					
						$6,584,027

					
					
						11/17/2009

					
					
						8.75%

				
	
					
						A-60

					
					
						Eastside Gardens
2078 Scenic Highway North
Snellville, GA 30078

					
					
						2010

					
					
						$1,766,628

					
					
						12/10/2009

					
					
						8.75%

				
	
					
						A-61

					
					
						Crimson Pointe

					
						7130 Crimson Ridge Drive

					
						Rockford, IL  61107

					
					
						2012

					
					
						$2,568,827

					
					
						05/01/2011

					
					
						8%

				
	
					
						A-62

					
					
						Talbot Park

					
						6311 Granby Street

					
						Norfolk, VA 23305

					
					
						2012

					
					
						$3,866,871

					
					
						06/20/2011

					
					
						7.5%

				
	
					
						A-63

					
					
						The Landing at Parkwood Village

					
						1720 Parkwood Boulevard

					
						Wilson, NC  27893

					
					
						2012

					
					
						$4,318,990

					
					
						06/20/2011

					
					
						7.5%

				
	
					
						A-64

					
					
						Aspenwood 

					
						14400 Homecrest Road Silver Spring, MD 20906

					
					
						2005

					
					
						$4,470,354

					
					
						10/25/2002

					
					
						10%

				
	
					
						A-65

					
					
						HeartFields at Easton
700 Port Street

					
						Easton, MD 21601

					
					
						2005

					
					
						$2,545,887

					
					
						10/25/2002

					
					
						10%

				
	
					
						A-66

					
					
						Morningside of Macon

					
						6191 Peake Road

					
						Macon, GA  31220

					
					
						2006

					
					
						$1,298,541

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-67

					
					
						Morningside of Beaufort

					
						109 Old Salem Road

					
						Beaufort, SC  29902

					
					
						2006

					
					
						$1,337,453

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-68

					
					
						Morningside of Camden

					
						719 Kershaw Highway

					
						Camden, SC  29020

					
					
						2006

					
					
						$1,595,035

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-69

					
					
						Morningside of Hartsville

					
						1901 West Carolina Avenue

					
						Hartsville, SC  29550

					
					
						2006

					
					
						$1,507,131

					
					
						11/19/2004

					
					
						9%

				

		
			 
		

		 

		

			 

		

 

			
					
						A-70

					
					
						Morningside of Lexington

					
						218 Old Chapin Road

					
						Lexington, SC  29072

					
					
						2006

					
					
						$1,638,422

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-71

					
					
						Morningside of Orangeburg

					
						2306 Riverbank Drive

					
						Orangeburg, SC  29118

					
					
						2006

					
					
						$1,129,764

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-72

					
					
						Morningside of Seneca

					
						15855 Wells Highway

					
						Seneca, SC  29678

					
					
						2006

					
					
						$1,684,477

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-73

					
					
						Morningside of Cullman

					
						2021 Dahlke Dr. NE

					
						Cullman, AL  32058

					
					
						2006

					
					
						$1,413,633

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-74

					
					
						Morningside of Madison

					
						49 Hughes Road

					
						Madison, AL  35758

					
					
						2006

					
					
						$1,531,206

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-75

					
					
						Morningside of Sheffield

					
						413 D. D. Cox Boulevard

					
						Sheffield, AL  35660

					
					
						2006

					
					
						$1,495,038

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-76

					
					
						Morningside of Bowling Green

					
						981 Campbell Lane

					
						Bowling Green, KY  42104

					
					
						2006

					
					
						$1,458,781

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-77

					
					
						Morningside of Paducah

					
						1700 Elmdale Road

					
						Paducah, KY  42003

					
					
						2006

					
					
						$2,012,245

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-78

					
					
						Morningside of Conyers

					
						1352 Wellbrook Circle

					
						Conyers, GA  30012

					
					
						2006

					
					
						$1,646,910

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-79

					
					
						Morningside of Gainesville

					
						2435 Limestone Parkway

					
						Gainesville, GA  30501

					
					
						2006

					
					
						$1,453,250

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-80

					
					
						Morningside of Cleveland

					
						2900 Westside Drive, N.W.

					
						Cleveland, TN  37312

					
					
						2006

					
					
						$1,212,846

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-81

					
					
						Morningside of Cookeville

					
						1010 East Spring Street

					
						Cookeville, TN  38501

					
					
						2006

					
					
						$1,513,932

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-82

					
					
						Morningside of Jackson

					
						1200 North Parkway

					
						Jackson, TN  38305

					
					
						2006

					
					
						$1,787,155

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-83

					
					
						Williamsburg Villas

					
						A Morningside Community

					
						3020 Heatherton Way

					
						Knoxville, TN  37920

					
					
						2006

					
					
						$2,728,841

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-84

					
					
						Morningside of Franklin

					
						105 Sunrise Circle

					
						Franklin, TN  37067

					
					
						2006

					
					
						$1,582,509

					
					
						11/19/2004

					
					
						9%

				
	
					
						A-85

					
					
						Morningside of Hopkinsville

					
						4190 Lafayette Road

					
						Hopkinsville, KY  42240

					
					
						2006

					
					
						$1,444,246

					
					
						11/19/2004

					
					
						9%exhibit101_20140930.htm

EXHIBIT 10.1

 

August 6, 2014

VIA E-MAIL

Mr. Clifton R. Beckham

8300 Mile Tree Drive

Fort Smith, AR 72903

Dear Cliff:

This letter agreement (“Agreement”) sets forth the agreements and understandings among you (“you” or “Executive”) and USA Truck, Inc. (the “Company”) regarding the orderly transition of your responsibilities and conclusion of your employment relationship with the Company.  On behalf of the board of directors and all of your colleagues, I would like to express gratitude for your many years of service, your desire to contribute to a smooth transition, and your flexibility in developing this arrangement.

1.           Separation. Executive's position as Executive Vice President and Chief Financial Officer of the Company, principal financial officer for purposes of filings with the U.S. Securities and Exchange Commission, and all other positions with the Company (if any), will continue until September 30, 2014 (the "First Separation Date") and may continue thereafter until the last day of the Extension Term, if any (the last day of employment being referred to as the "Separation Date"). The Extension Term means one or more days commencing October 1 and continuing through a date not later than October 31, 2014, during which the Company and Executive mutually agree in writing for Executive's employment to continue.  Executive's signature on this Agreement will function as his resignation from employment and all positions with the Company effective as of the Separation Date.

2.           Nature of Services.  Executive's services to the Company through the Separation Date will consist of his normal responsibilities.  In addition, if requested, Executive will assist with education of interim and permanent personnel who may perform some or all of the responsibilities of Executive following the Separation Date.  The parties acknowledge that the Executive will not be employed on the filing date of, and therefore will not sign as principal financial officer or in any other capacity, the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2014.

3.           Payment For Executive’s Services. Executive and the Company hereby agree that through the Separation Date, Executive's existing compensation and benefits will continue without modification except as set forth herein.  From September 1, 2014, through the First Separation Date, and in addition to normal compensation and benefits that will be paid consistent with past practice, Executive will receive $25,000, subject to normal withholdings, payable no later than three business days following the later of the date the Release (as hereinafter defined) becomes irrevocable or the date the Release, signed by Executive, is received by the Company (the "Settlement Payment Date").  If the Company and the Executive agree to an Extension Term, Executive will also receive (in addition to normal compensation and benefits that will be paid consistent with past practice) payment in the amount equal to $1,136.36 for each business day during the Extension Term through the Separation Date payable on the Settlement Payment Date, subject to normal withholdings.

4.           Retention Bonus. The Company hereby agrees that Executive will retain, and will not be required to repay to the Company, the retention bonus paid to Executive (the “Retention Bonus”) under the Company’s 2013 Management Team Retention Bonus Plan dated October 30, 2013 (the “Retention Bonus Plan”).  The Company acknowledges and agrees that it waives its rights to repayment of the Retention Bonus, including, without limitation, pursuant to Sections 2.1 and 3.1 of the Retention Bonus Plan.

  

  

  

5.           Waiver of Severance Benefits.  Other than as provided for in this Agreement, Executive waives any right to severance or any other benefits in connection with or as a result of the cessation of his employment with the Company, for any reason, and agrees that he is only entitled to the payments and other separation benefits provided in this Agreement.  Other than as provided for in this Agreement, Executive acknowledges that he is not entitled to any future continuing health or other benefits (except as may be required by applicable law) and waives any rights other than those required under applicable law.

6.           Equity Awards. Any outstanding equity awards held by Executive (including, without limitation, any restricted stock or any stock options) will be governed by the terms and conditions of the plans and agreements or award notices under which such equity awards were granted, and nothing in this Agreement will modify any terms or conditions of such plans and agreements or award notices. Executive acknowledges that the vesting, forfeiture, exercise, and other terms and conditions are not modified by this Agreement, and that Executive is responsible for taking any actions required to gain the benefits (if any) available under such awards. Without limiting the generality of the foregoing, Executive will be entitled to exercise stock options for up to thirty (30) days after the Separation Date to the extent Executive was entitled to exercise such stock options as of the Separation Date in accordance with Section 2(ii) of the Incentive Stock Option Agreements between the Company and Executive.

7.           Non-Solicit.  Executive agrees that the following restrictions on his activities during and after his employment are necessary to protect the goodwill, Confidential Information, and other legitimate interests of the Company and any person or entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, the Company ( collectively, "Affiliates") and also acknowledges that Executive's agreement is supported by good and valuable consideration including, without limitation, additional amounts payable in accordance with this Agreement.  Executive therefore agrees as follows:

(a)           Through the Separation Date and for the six (6) months thereafter (in the aggregate, the "Non-Solicit Period"), Executive will not, directly or indirectly, and will not assist anyone else to (i) hire or solicit for hire any current employee of the Company or any of its Affiliates, or seek to persuade any employee of the Company or any of its Affiliates to discontinue employment, or (ii) solicit or encourage any independent contractor providing services to the Company or any of its Affiliates to terminate or diminish its relationship with them.

(b)           Executive further agrees that during the Non-Solicit Period, Executive will not, directly or indirectly, solicit or encourage any current customer of the Company or any of its Affiliates to terminate or diminish its relationship with them, or, seek to persuade any current customer or prospective customer of the Company or any of its Affiliates to conduct with any person or entity any business or activity which such customer or prospective customer conducts or could conduct with the Company or any of its Affiliates.  “Prospective customer” includes only those whose business has been actively solicited on behalf of the Company or any of its Affiliates by any of their officers, employees or agents at any time during the six (6) months immediately preceding the Separation Date other than by form letter, blanket mailing or general advertisement.

  

2

  

8.           Waiver and Release of Claims.  In order to be eligible to receive amounts payable on the Settlement Payment Date, however, you must (i) comply with all of your obligations under this Agreement and (ii) execute a timely and effective release of claims in the form attached hereto and marked Exhibit A (the "Release of Claims").  The Release of Claims creates legally binding obligations and the Company therefore advises you to consult an attorney before signing it.  For and in consideration of the benefits provided the Company under this Agreement, effective simultaneously when the Release is executed by you and delivered to the Company and becomes irrevocable, the Company, on behalf of itself and its Affiliates, hereby release and forever discharge the Executive and his heirs, executors, administrators, beneficiaries, representatives and assigns from any and all causes of action, rights or claims of any type or description, known or unknown, which the Company has had in the past, now has, or might now have, through the date of this Agreement, in any way resulting from, arising out of or connected with Executive's employment by the Company or the termination of that employment or pursuant to federal, state or local law, regulation or requirement. 

9.           Nondisparagement; No Contact.  The parties agree that they will not in any way disparage each other to any other party, including current or former stockholders, officers, directors and employees of the Company or its Affiliates, nor will they make or solicit any comments, statements or the like to the media or to others, including any claims against each other or their agents or representatives, that may be considered to be derogatory or detrimental to the good name or business reputation of the other.

10.           No Admission of Wrongdoing. The parties agree that nothing in this Agreement is an admission by any party hereto of any wrongdoing, either in violation of an applicable law or otherwise, and that nothing in this Agreement is to be construed as such by any person.

11.           Voluntary Agreement. Executive further acknowledges that he understands this Agreement, the claims he is releasing, the promises and agreements he is making, and the effect of his signing this Agreement. Executive understands the payments to him under this Agreement are in excess of those to which he is legally entitled and agrees that he voluntarily accepts the payments described above as additional consideration for the non-solicit and other obligations referred to herein and for the purpose of making a full and final compromise, adjustment and settlement of all claims or potential claims against the Releasees (as defined in Exhibit A attached hereto) from any action or inaction taking place on or before the Separation Date.

12.           Ownership and Disclosure of Information.

 

(a)Information. Executive agrees that all Confidential Information is solely and absolutely owned by the Company and is unique to the Company and its Affiliates; that Executive has no right, title or interest in and to the Confidential Information.  Executive acknowledges and agrees that the Confidential Information is material to the conduct of the Company’s and its Affiliates' business, and further agrees that he will not disclose any Confidential Information, or use to his benefit (or to the benefit of any third party), or use to the detriment of the Company or its Affiliates, any Confidential Information. As used herein, “Confidential Information” means all materials and information (whether written or not) about the Company’s or its Affiliates' services, processes, research, development, past, present, and identifiable prospective customers, personnel, purchasing, marketing, costs, improvements, discoveries, business methods, formulas, inventions, philosophies, and other business aspects of the Company or its Affiliates that are not generally known and accessible to the public.

 

(b)Developments. Executive acknowledges that all copyrightable works that Executive may have created during the term of his employment with the Company or its Affiliates (collectively, “Developments”) are “work made for hire” and the Company is the sole owner of all the results and products of Executive’s prior employment with the Company or its Affiliates free and clear of any claims by Executive of any kind or character whatsoever.

  

3

  

13.           Return of Company Property.  Executive agrees that, not later than the Separation Date, he will return to the Company all of its property in Executive’s possession, custody or control, including, without limitation, all Confidential Information, Developments, keys, access cards, credit cards, computer hardware (including but not limited to any hard drives, diskettes, laptop computers and personal data assistants and the contents thereof, as well as any passwords or codes needed to operate any such hardware), cellular telephones, computer software, data, materials, papers, books, files, documents, records, policies, client and customer information and lists, marketing information and lists, mailing lists, notes and any other property or information that Executive has or had relating to the Company or its Affiliates (whether those materials are in paper or electronic form), and including, but not limited to, any documents containing, summarizing or describing any Confidential Information.  Notwithstanding the foregoing, Executive will be entitled to retain (a) Executive’s laptop, from which the Company will remove Confidential Information prior to the Separation Date, (b) Executive’s cellular telephone and (c) Executive’s cellular telephone number, provided that Executive agrees that, from and after the Separation Date, he will not initiate or respond to telephone calls, text messages or other communications to or from analysts, customers, employees, drivers, independent contractors or other business associates of the Company or its Affiliates regarding his former roles and responsibilities at the Company, the subject matter of this Agreement or the Company.

14.           Indemnification.  The Company hereby agrees that Executive will continue to be entitled to all of his respective statutory rights to indemnification, including, without limitation, indemnification pursuant to the Company's organizational documents, insurance policies or under applicable law to the same extent Executive would have had the right to be indemnified absent this Agreement and the Release.

15.           Governing Law.  The parties agree that the Agreement will be interpreted and governed by the laws of the state of Arkansas without regard to principles of comity or conflict of law provisions of any jurisdiction.

16.           Modification.  The parties hereto agree that this Agreement may not be modified, altered or changed except by a written agreement signed by the parties hereto.

17.           Entire Agreement.  The parties acknowledge that this Agreement constitutes the entire agreement between them regarding Executive’s separation, superseding all prior written and oral agreements regarding such topic; provided, however, that this Agreement will not constitute a waiver by the Company of any right they now have or may now have under any agreement imposing obligations on you with respect to confidentiality, non-competition, non-solicitation of employees, customers, vendors or independent contractors or like obligations.

18.           Invalidity of Provisions/Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, will not be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law.

19.           No Reliance; Taxes. The parties have not relied on any representations, promises or agreements of any kind made to them in connection with this Agreement, except for those set forth in this Agreement. Any payments made to Executive under this Agreement will be reduced by the full amount legally required to be withheld for federal, state or local tax purposes by the Company.

  

4

  

20.           Notices.  Any notices to be given hereunder by either party hereto to the other may be effected either by (i) personal delivery in writing, (ii) facsimile or (iii) mail, registered or certified, postage prepaid, with return receipt requested.  Mailed or faxed notices will be addressed or faxed as follows:

	  	
If to the Company:

	
USA Truck, Inc.

	  	  	
3200 Industrial Park Road

	  	  	
Van Buren, Arkansas 72956

	  	  	
Attn: President and Chief Executive Officer

	  	  	
Facsimile: (479) 471-2526

	  	  	  
	  	  	  
	  	
If to Executive:

	
Clifton R. Beckham

	  	  	
8300 Mile Tree Drive

	  	  	
Fort Smith, AR 72903

	  	  	
Email: c-beckham@sbcglobal.net

	  	  	  

21.           Execution; Binding Effect.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original as against any party whose signature appears thereon, and all of which will together constitute one instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic format (i.e., “pdf” or “tif”) will be effective as delivery of a manually executed counterpart of this Agreement.  This Agreement will be binding upon and inure to the benefit of the Company, its Affiliates, and their successors and assigns and will be binding upon Executive and your heirs and personal representatives.

 

Sincerely,

/s/ John M. Simone

John M. Simone

President and Chief Executive Officer

USA Truck, Inc.

AGREED AND ACCEPTED effective the 6 day of August 2014.

/s/ Clifton R. Beckham                                                                

Clifton R. Beckham

  

5

  

EXHIBIT A

RELEASE OF CLAIMS

In exchange for the payments and benefits described in this Agreement, Executive, on his own behalf and on behalf of his heirs, executors, administrators, assigns and successors, does hereby covenant not to sue and acknowledges full and complete satisfaction of and hereby releases, absolves and discharges the Company and its Affiliates and their successors and assigns, parents, subsidiaries and affiliates, past and present, as well as their trustees, directors, officers, agents, attorneys, insurers, stockholders and employees, past and present, and each of them (hereinafter collectively referred to as “Releasees”), with respect to and from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, wages, vacation pay, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which Executive now owns or holds or has at any time heretofore owned or held as against said Releasees, or any of them, arising out of or in any way connected with his employment or other relationships with the Company or its Affiliates, or his separation from any such employment or other relationships (collectively, “Released Claims”), including specifically, but without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, as amended by the Older Worker’s Benefit Protection Act (“ADEA”), the federal Family and Medical Leave Act or any other employment related federal, state or local law, regulation or ordinance; provided, however, that the foregoing release will not include or affect (and the following are expressly excluded from any Released Claims): (i) Executive’s rights under this Agreement; (ii) Executive’s rights to file claims for workers’ compensation or unemployment insurance benefits, and (iii) Executive’s regular and usual salary accrued prior to the Separation Date, accrued but unused vacation through the Separation Date, COBRA continuation coverage and life insurance conversion rights, if any.  Finally, Executive agrees that, if any Released Claim is brought on Executive’s behalf or for Executive’s benefit in a court or administrative agency, Executive will take all necessary actions to waive and agree not to accept any award of money or other damages as a result of such claim.  Furthermore, notwithstanding the foregoing release, Executive will continue to be entitled to all of his respective statutory rights to indemnification, including, without limitation, indemnification pursuant to the Company’s organizational documents, insurance policies or under applicable law to the same extent Executive would have had the right to be indemnified absent this release.

Executive acknowledges that he is waiving and releasing any rights he may have under the ADEA and that this waiver and release is knowing and voluntary. Executive and the Company agree that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date (as hereinafter defined) of this Agreement.  Executive acknowledges that the consideration given for this Agreement is in addition to anything of value to which he was already entitled.  Executive further acknowledges that he has been advised by this writing that:

 

 

(a)           He should consult with an attorney prior to executing this Agreement;

 

  

6

  

(b)           He has at least twenty-one (21) days within which to consider this Agreement, but if he wishes to sign this Agreement earlier, he may do so by signing the Acknowledgment and Waiver of the 21-day consideration period in the form attached as Exhibit B to this Agreement;

 

(c)           He has seven (7) days following his execution of this Agreement to revoke this Agreement;

 

(d)           This Agreement will not be effective until the eighth day after Executive executes and does not revoke this Agreement (the “Effective Date”); and

 

(e)           Nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law.  Any revocation must be in writing and hand delivered to the Company by close of business on or before the seventh day from the date that Executive signs this Agreement.  In the event that Executive exercises his right of revocation, neither Executive nor any member of the Company or its Affiliates will have any further rights or obligations under this Agreement.

Executive represents and warrants that he has no present knowledge of any injury, illness or disease to him that is or might be compensable as a workers’ compensation claim or similar claim for workplace injuries, illnesses or diseases.

Terms used herein and not otherwise defined will have the meanings set forth in the Agreement to which this Release was attached.

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