Document:

Exhibit 10.3

 

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

 

THIS PARTIAL TERMINATION OF AND NINTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO. 1) (this “Amendment”) is made and entered into as of August 1, 2013 by and among each of the parties identified on the signature pages hereof as a landlord (collectively, “Landlord”) and FIVE STAR QUALITY CARE TRUST, a Maryland business trust (“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, and that certain Eighth Amendment to Amended and Restated Master Lease Agreement (Lease No. 1), dated as of August 31, 2012 (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, SPTIHS Properties Trust is selling a portion of the Leased Property consisting of the real property and related improvements known as the Arbor View Healthcare and Rehabilitation Center and located at 1317 North 36th Street, Saint Joseph, Missouri, as more particularly described on Exhibit A-29 to Amended Lease No. 1 (the “Arbor View Property”); and

 

WHEREAS, in connection with the sales of the Arbor View Property, SPTIHS Properties Trust, the other entities comprising Landlord and Tenant wish to amend Amended Lease No. 1 to terminate Amended Lease No. 1 with respect to the Arbor View 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 Arbor View Property and neither Landlord nor Tenant shall have any further rights or liabilities thereunder with respect to the Arbor View 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-Eight Million Six Hundred Thirty Nine Thousand One Hundred Eighty-Five and 95/100 Dollars ($58,639,185.95) 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 deleting the text of Exhibit A-29 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
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SPTMNR   PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH/LTA   PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SPTIHS   PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH   CHS PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH/LTA   PROPERTIES GA LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    

 

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

 

 

	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
FIVE   STAR QUALITY CARE TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bruce J. Mackey Jr.
    
	
 
    	
 
    	
Bruce J. Mackey Jr.
    
	
 
    	
 
    	
President
    

 

[Signature Page: Partial Termination of and Ninth 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
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-4
    	
 
    	
Somerford   Place - Fresno

6075   North Marks Avenue

Fresno,   CA  93711
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-5
    	
 
    	
Lancaster   Healthcare Center

1642   West Avenue J

Lancaster,   CA  93534
    	
 
    	
2005
    	
 
    	
$
    	
6,698,648
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-6
    	
 
    	
Somerford   Place – Redlands

1319   Brookside Avenue

Redlands,   CA  92373 
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-7
    	
 
    	
Somerford   Place - Roseville

110   Sterling Court

Roseville,   CA  95661
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-8
    	
 
    	
Leisure   Pointe

1371   Parkside Drive

San   Bernardino, CA  92404
    	
 
    	
2007
    	
 
    	
$
    	
1,936,220
    	
 
    	
09/01/2006
    	
 
    	
8.25%
    
	
A-9
    	
 
    	
Van   Nuys Health Care Center

6835   Hazeltine Street

Van   Nuys, CA  91405
    	
 
    	
2005
    	
 
    	
$
    	
3,626,353
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-10
    	
 
    	
Mantey   Heights 

Rehabilitation &   Care Center

2825   Patterson Road

Grand   Junction, CO  81506
    	
 
    	
2005
    	
 
    	
$
    	
5,564,949
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-11
    	
 
    	
Cherrelyn   Healthcare Center

5555   South Elati Street

Littleton,   CO  80120
    	
 
    	
2005
    	
 
    	
$
    	
12,574,200
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-12
    	
 
    	
Somerford   House and Somerford Place – Newark I & II

501   South Harmony Road and

4175   Ogletown Road

Newark,   DE  19713
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-13
    	
 
    	
Tuscany   Villa Of Naples 

(aka   Buena Vida)

8901   Tamiami Trail East

Naples,   FL  34113
    	
 
    	
2008
    	
 
    	
$
    	
2,157,675
    	
 
    	
09/01/2006
    	
 
    	
8.25%
    
	
A-14
    	
 
    	
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
    	
 
    	
2006
    	
 
    	
$
    	
1,433,421
    	
 
    	
11/19/2004
    	
 
    	
9%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
   (Calendar Year)
    	
 
    	
Base Gross Revenues
   (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
   Rate
    
	
 
    	
 
    	
Evans,   GA  30809
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-25
    	
 
    	
Somerford   Place - Columbia

8220   Snowden River Parkway

Columbia,   MD  21045
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-26
    	
 
    	
Somerford   Place - Frederick

2100   Whittier Drive

Frederick,   MD  21702
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-27
    	
 
    	
Somerford   Place - Hagerstown

10114 &   10116 Sharpsburg Pike

Hagerstown,   MD  21740
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/31/2008
    	
 
    	
8%
    
	
A-28
    	
 
    	
The   Wellstead of Rogers

20500   and 20600

        South Diamond Lake Road

Rogers,   MN  55374
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
03/01/2008
    	
 
    	
8%
    
	
A-29
    	
 
    	
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%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
   (Calendar Year)
    	
 
    	
Base Gross Revenues
   (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
   Rate
    
	
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
    	
 
    	
Heartfields   at Richmond

500   North Allen Avenue

Richmond,   VA  23220
    	
 
    	
2005
    	
 
    	
$
    	
1,917,765
    	
 
    	
10/25/2002
    	
 
    	
10%
    
	
A-48
    	
 
    	
Brookfield Rehabilitation   and Specialty Care (aka Woodland Healthcare Center)

18741   West Bluemound Road

Brookfield,   WI  53045
    	
 
    	
2005
    	
 
    	
$
    	
13,028,846
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-49
    	
 
    	
Meadowmere - Southport   Assisted Living

8350   and 8351 Sheridan Road

Kenosha,   WI  53143
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
01/04/2008
    	
 
    	
8%
    
	
A-50
    	
 
    	
Meadowmere - Madison   Assisted Living

5601   Burke Road

Madison,   WI  53718
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
01/04/2008
    	
 
    	
8%
    
	
A-51
    	
 
    	
Sunny   Hill Health Care Center

4325   Nakoma Road

Madison,   WI  53711
    	
 
    	
2005
    	
 
    	
$
    	
3,237,633
    	
 
    	
12/31/2001
    	
 
    	
10%
    
	
A-52
    	
 
    	
Mitchell   Manor Senior Living

5301   West Lincoln Avenue

West   Allis, WI  53219
    	
 
    	
2009
    	
 
    	
N/A
    	
 
    	
01/04/2008
    	
 
    	
8%
    
	
A-53
    	
 
    	
Laramie   Care Center

503   South 18th Street

Laramie,   WY  82070
    	
 
    	
2005
    	
 
    	
$
    	
4,473,949
    	
 
    	
12/31/2001
    	
 
    	
10%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
   (Calendar Year)
    	
 
    	
Base Gross Revenues
   (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
   Rate
    
	
A-54
    	
 
    	
Haven   in Highland Creek

5920   McChesney Drive

Charlotte,   NC  28269

 

Laurels   in Highland Creek

 6101 Clark Creek Parkway

Charlotte,   NC  28269
    	
 
    	
2010
    	
 
    	
N/A
    	
 
    	
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
    	
 
    	
N/A
    	
 
    	
11/17/2009
    	
 
    	
8.75%
    
	
A-56
    	
 
    	
Haven   in the Summit

3   Summit Terrace

Columbia,   SC  29229
    	
 
    	
2010
    	
 
    	
N/A
    	
 
    	
11/17/2009
    	
 
    	
8.75%
    
	
A-57
    	
 
    	
Haven   in the Village at Chanticleer 

355   Berkmans Lane

Greenville,   SC  29605
    	
 
    	
2010
    	
 
    	
N/A
    	
 
    	
11/17/2009
    	
 
    	
8.75%
    
	
A-58
    	
 
    	
Haven   in the Texas Hill Country

747   Alpine Drive

Kerrville,   TX  78028
    	
 
    	
2010
    	
 
    	
N/A
    	
 
    	
11/17/2009
    	
 
    	
8.75%
    
	
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
    	
 
    	
N/A
    	
 
    	
11/17/2009
    	
 
    	
8.75%
    
	
A-60
    	
 
    	
Eastside Gardens

2078 Scenic Highway North

Snellville, GA 30078
    	
 
    	
2010
    	
 
    	
N/A
    	
 
    	
12/10/2009
    	
 
    	
8.75%
    
	
A-61
    	
 
    	
Crimson Pointe

7130 Crimson Ridge Drive

Rockford, IL    61107
    	
 
    	
2012
    	
 
    	
N/A
    	
 
    	
05/01/2011
    	
 
    	
8%
    
	
A-62
    	
 
    	
Talbot Park

6311 Granby Street

Norfolk, VA 23305
    	
 
    	
2012
    	
 
    	
N/A
    	
 
    	
06/20/2011
    	
 
    	
7.5%
    
	
A-63
    	
 
    	
The Landing at Parkwood Village

1720 Parkwood Boulevard

Wilson, NC    27893
    	
 
    	
2012
    	
 
    	
N/A
    	
 
    	
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%Exhibit 10.4

 

SENIOR HOUSING PROPERTIES TRUST

 

RESTRICTED SHARE AGREEMENT

 

This Restricted Share Agreement (this “Agreement”) is made as of «DATE», «YEAR», between «NAME» (the “Recipient”) and Senior Housing Properties Trust (the “Company”).

 

In consideration of the mutual promises and covenants contained in this Agreement, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Grant of Shares.  Subject to the terms and conditions hereinafter set forth and the terms and conditions of the Senior Housing Properties Trust 2012 Equity Compensation Plan, as it may be amended from time to time (the “Plan”), the Company hereby grants to the Recipient, effective as of the date of this Agreement, «NUMBER OF SHARES» of its common shares of beneficial interest, par value $.01 per share.  The shares so granted are hereinafter referred to as the “Shares,” which term shall also include any shares of the Company issued to the Recipient by virtue of his or her ownership of the Shares, by share dividend, share split, recapitalization or otherwise.

 

2.             Vesting; Repurchase of Shares.

 

(a)           Subject to Sections 2(b) and 2(c) hereof, the Shares shall vest one-fifth of the total number of Shares as of the date hereof and as to a further one-fifth of such total number of Shares on each anniversary of the date hereof for the next four calendar years.  Any Shares not vested as of any date are herein referred to as “Unvested Shares.”

 

(b)           Subject to Section 2(c) hereof, at the option of the Company, in the event the Recipient ceases to render significant services, whether as an employee or otherwise, to (i) the Company, (ii) the entity which is the manager or shared services provider to the Company or an entity controlled by, under common control with or controlling such entity (collectively, the “Manager”), or (iii) an affiliate of the Company (which shall be deemed for such purpose to include any other entity to which the Manager is the manager or shared services provider), all or any portion of the Unvested Shares shall be forfeited by the Recipient as of the date the Recipient ceases to render such services.  The Company may exercise such option by delivering or mailing to the Recipient (or his or her estate), at any time after the Recipient has ceased to render such services, a written notice of exercise of such option.  Such notice shall specify the number of Unvested Shares to be forfeited.

 

(c)           Notwithstanding anything in this Agreement to the contrary, immediately upon the occurrence of an Acceleration Event (as defined below), all of the Unvested Shares shall vest and any forfeiture or other rights of the Company described in Section 2(b) shall lapse in their entirety, and such vesting and lapse of forfeiture or other Company rights shall also immediately apply to each other common share of beneficial interest, par value $.01 per share, of the Company previously granted to the Recipient which then remains subject to comparable restrictions and rights.  For purposes of this Section 2(c), an Acceleration Event shall be deemed to occur immediately upon the

 

 

occurrence of any of the following events: a Change in Control, a Termination Event (as each such term is defined in Exhibit A hereto) or the death of the Recipient.

 

3.             Legends.  Share certificates, if any, evidencing the Shares shall prominently bear legends in substantially the following terms:

 

“THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED PURSUANT TO AN EQUITY COMPENSATION PLAN MAINTAINED BY THE TRUST.  THESE SHARES MAY BE SUBJECT TO TRANSFER AND/OR VESTING RESTRICTIONS, AND UNVESTED SHARES ARE SUBJECT TO REPURCHASE RIGHTS AND FORFEITURE CONDITIONS CONTAINED IN THE PLAN, THE RELATED GRANT OF SHARES OR AN AGREEMENT BETWEEN THE TRUST AND THE INITIAL HOLDER OF THESE SHARES.  A COPY OF APPLICABLE RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS WILL BE FURNISHED TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE TRUST.”

 

In the event that the Shares are not evidenced by share certificates, the share books and records of the Company shall contain a notation in substantially the following terms:

 

“THE SHARES COVERED BY THIS STATEMENT WERE ISSUED PURSUANT TO AN EQUITY COMPENSATION PLAN MAINTAINED BY THE TRUST.  THESE SHARES MAY BE SUBJECT TO TRANSFER AND/OR VESTING RESTRICTIONS, AND UNVESTED SHARES ARE SUBJECT TO REPURCHASE RIGHTS AND FORFEITURE CONDITIONS CONTAINED IN THE PLAN, THE RELATED GRANT OF SHARES OR AN AGREEMENT BETWEEN THE TRUST AND THE INITIAL HOLDER OF THESE SHARES.  A COPY OF APPLICABLE RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS WILL BE FURNISHED TO THE HOLDER OF THE SHARES COVERED BY THIS STATEMENT WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE TRUST.”

 

Certificates evidencing Shares and Shares not evidenced by certificates shall also bear or contain, as applicable, legends and notations as may be required by the Plan or the Company’s declaration of trust, any applicable supplement thereto or bylaws, each as in effect from time to time, or as the Company may otherwise determine appropriate.

 

Promptly following the request of the Recipient with respect to any Shares (or any other common share of beneficial interest, par value $.01 per share, of the Company previously granted to the Recipient) which have become vested, the Company shall take, at its sole cost and expense, all such actions as may be required to permit the Recipient to resell such shares including, without limitation, providing to the Company’s transfer agent certificates of officers of the Company, and opinions of counsel and/or filing an appropriate registration statement, and taking all such other actions as may be required to remove the legends set forth above with respect to transfer and vesting restrictions from the certificates evidencing such shares and, if applicable, from the share books and records of the Company.  The Company shall reimburse the

 

2

 

Recipient, promptly upon the receipt of a request for payment, for all expenses (including legal expenses) reasonably incurred by the Recipient in connection with the enforcement of the Recipient’s rights under this paragraph.

 

4.             Tax Withholding.  To the extent required by law, the Company shall withhold or cause to be withheld income and other taxes incurred by the Recipient by reason of a grant of Shares, and the Recipient agrees that he or she shall upon request of the Company pay to the Company an amount sufficient to satisfy its tax withholding obligations from time to time (including as Shares become vested) as the Company may request.

 

5.             Miscellaneous.

 

(a)           Amendments.  Neither this Agreement nor any provision hereof may be changed or modified except by an agreement in writing executed by the Recipient and the Company; provided, however, that any change or modification that does not adversely affect the rights hereunder of the Recipient, as they may exist immediately prior to the effective date of such change or modification, may be adopted by the Company without an agreement in writing executed by the Recipient, and the Company shall give the Recipient written notice of such change or modification reasonably promptly following the adoption of such change or modification.

 

(b)           Binding Effect of the Agreement.  This Agreement shall inure to the benefit of, and be binding upon , the Company, the Recipient and their respective estates, heirs, executors, transferees, successors, assigns and legal representatives.

 

(c)           Provisions Separable.  In the event that any of the terms of this Agreement shall be or become or is declared to be illegal or unenforceable by any court or other authority of competent jurisdiction, such terms shall be null and void and shall be deemed deleted from this Agreement, and all the remaining terms of this Agreement shall remain in full force and effect.

 

(d)           Notices.  Any notice in connection with this Agreement shall be deemed to have been properly delivered if it is in writing and is delivered by hand or by facsimile or sent by registered certified mail, postage prepaid, to the party addressed as follows, unless another address has been substituted by notice so given:

 

	
To   the Recipient:
    	
To   the Recipient’s address as set forth on the signature page hereof.
    
	
 
    	
 
    
	
To   the Company:
    	
Senior   Housing Properties Trust
    
	
 
    	
Two   Newton Place
    
	
 
    	
255   Washington Street, Suite 300
    
	
 
    	
Newton,   MA 02458
    
	
 
    	
Attn: Secretary
    

 

(e)           Construction.  The headings and subheadings of this Agreement have been inserted for convenience only, and shall not affect the construction of the provisions hereof.  All

 

3

 

references to sections of this Agreement shall be deemed to refer as well to all subsections which form a part of such section.

 

(f)            Employment Agreement.  This Agreement shall not be construed as an agreement by the Company, the Manager or any affiliate of the Company or the Manager to employ the Recipient, nor is the Company, the Manager or any affiliate of the Company or the Manager obligated to continue employing the Recipient by reason of this Agreement or the grant of Shares to the Recipient hereunder.

 

(g)           Applicable Law.  This Agreement shall be construed and enforced in accordance with the laws of The Commonwealth of Massachusetts.

 

4

 

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

 

 

	
 
    	
SENIOR   HOUSING PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
RECIPIENT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
«NAME»
    
	
 
    	
«ADDRESS»
    
	
 
    	
«CITY», «ST» «ZIP»
    

 

5

 

Exhibit A

 

A “Change in Control” shall be deemed to have occurred if any of the events set forth in any one of the following paragraphs shall have occurred:

 

(a)           any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 50% or more of either the then outstanding common shares of the Company or the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in paragraph (c)(i) below;

 

(b)           the following individuals cease for any reason to constitute a majority of the number of Trustees then serving: individuals who, on the date of the Agreement, constitute the Board and any new Trustee (other than a Trustee whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of Trustees) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the Trustees then in office who either were Trustees on the date of the Agreement or whose appointment, election or nomination for election was previously so approved or recommended;

 

(c)           there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other entity, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or

 

(d)           the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

A “Termination Event” shall occur if Reit Management & Research LLC (or any entity controlled by, under common control with or controlling Reit Management & Research LLC) ceases to be the manager or shared services provider to the Company.

 

 

For purposes of the definitions set forth on this Exhibit A, the following definitions shall apply, with capitalized terms used but not defined in this Exhibit A having the meaning set forth in the Plan:

 

“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

 

“Agreement” shall mean the Restricted Share Agreement to which this Exhibit A is attached.

 

“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities and (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00222-of-00352.parquet"}]]