Document:

Exhibit 10.14

 

AMENDED AND RESTATED GUARANTY AGREEMENT

 

(LEASE NO. 3)

 

THIS AMENDED AND RESTATED GUARANTY AGREEMENT (this “Agreement”)
is made and given as of June 30, 2008 by FIVE STAR
QUALITY CARE, INC., a Maryland corporation  (the
“Guarantor”), for the benefit of SNH
SOMERFORD PROPERTIES TRUST, SPTIHS PROPERTIES TRUST, and SPTMNR PROPERTIES TRUST, each a Maryland
real estate investment trust (together with their successors and assigns,
collectively, the “Landlord”).

 

W  I  T  N  E  S
S  E  T  H :

 

WHEREAS, the Landlord
and Five Star Quality Care Trust, a Maryland business trust (“Tenant”)
are parties to that certain Second Amended and Restated Lease Agreement, dated
as of November 19, 2004, as the same has been amended to date (as so
amended, the “Original Lease”); and

 

WHEREAS, in connection with the Original Lease,
the Guarantor executed that certain Guaranty Agreement dated as of October 25,
2002, as confirmed from time to time (as so confirmed, the “Original
Guaranty”) for the benefit of the Landlord, pursuant to which the Guarantor
guaranteed all of the payment and performance obligations of Tenant under the
Original Lease; and

 

WHEREAS, as of the date hereof Landlord and Tenant are amending, restating and
bifurcating the Original Lease into two separate leases, one of which shall be
named the Amended and Restated Master Lease Agreement(Lease No. 3), (the “Amended
Lease No. 3”); and

 

WHEREAS, the Landlord
and Guarantor wish to amend and restate the Original Guaranty to guaranty all
of the payment and performance obligations of Tenant under the Amended Lease No. 3;
and

 

WHEREAS, the
transactions contemplated by the Amended Lease No. 3 are of direct
material benefit to the Guarantor;

 

NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the mutual receipt and 

 

 

legal sufficiency of which
are hereby acknowledged, the Guarantor hereby agrees as follows:

 

1.                                       Certain Terms.  Capitalized terms used and not otherwise
defined in this Agreement shall have the meanings ascribed to such terms in the
Amended Lease No. 3.  The Amended
Lease No. 3 and the Incidental Documents are herein collectively referred
to as the “Transaction Documents.”

 

2.                                       Guaranteed
Obligations.  For
purposes of this Agreement the term “Guaranteed Obligations” shall mean
the payment and performance of each and every obligation of Tenant to the
Landlord under the Transaction Documents or relating thereto, whether now
existing or hereafter arising, and including, without limitation, the payment
of the full amount of the Rent payable under the Amended Lease No. 3.

 

3.                                       Representations
and Covenants.  The
Guarantor represents, warrants, covenants, and agrees that:

 

3.1  Incorporation of Representations and
Warranties.  The representations and
warranties of Tenant and its Affiliated Persons set forth in the Transaction
Documents are true and correct on and as of the date hereof in all material
respects.

 

3.2  Performance of Covenants and Agreements.  The Guarantor hereby agrees to take all
lawful action in its power to cause Tenant duly and punctually to perform all
of the covenants and agreements set forth in the Transaction Documents.

 

3.3  Validity of Agreement.  The Guarantor has duly and validly executed
and delivered this Agreement; this Agreement constitutes the legal, valid and
binding obligation of the Guarantor, enforceable against the Guarantor in
accordance with its terms, except as the enforceability thereof may be subject
to bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium
and other laws relating to or affecting creditors’ rights generally and subject
to general equitable principles, regardless of whether enforceability is
considered in a proceeding at law or in equity; and the execution, delivery and
performance of this Agreement have been duly authorized by all requisite action
of the Guarantor and such execution, delivery and performance by the Guarantor
will not result in any breach of the terms, conditions or provisions of, or
conflict with or constitute a default under, or result in the creation of any
lien, charge or encumbrance upon any of the property or assets of the Guarantor
pursuant to the terms of, any indenture, mortgage, deed of trust, note, other
evidence of 

 

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indebtedness,
agreement or other instrument to which it may be a party or by which it or any
of its property or assets may be bound, or violate any provision of law, or any
applicable order, writ, injunction, judgment or decree of any court or any
order or other public regulation of any governmental commission, bureau or
administrative agency.

 

3.4  Payment of Expenses.  The Guarantor agrees, as principal obligor
and not as guarantor only, to pay to the Landlord forthwith, upon demand, in
immediately available federal funds, all costs and expenses (including
reasonable attorneys’ fees and disbursements) incurred or expended by the
Landlord in connection with the enforcement of this Agreement, together with
interest on amounts recoverable under this Agreement from the time such amounts
become due until payment at the Overdue Rate. 
The Guarantor’s covenants and agreements set forth in this Section 3.4
shall survive the termination of this Agreement.

 

3.5  Notices.  The Guarantor shall promptly give notice to
the Landlord of any event known to it which might reasonably result in a
material adverse change in its financial condition.

 

3.6  Reports.  The Guarantor shall promptly provide to the
Landlord each of the financial reports, certificates and other documents required
of it under the Transaction Documents.

 

3.7  Books and Records.  The Guarantor shall at all times keep proper
books of record and account in which full, true and correct entries shall be
made of its transactions in accordance with generally accepted accounting
principles and shall set aside on its books from its earnings for each fiscal
year all such proper reserves, including reserves for depreciation, depletion,
obsolescence and amortization of its properties during such fiscal year, as
shall be required in accordance with generally accepted accounting principles,
consistently applied, in connection with its business.  The Guarantor shall permit access by the
Landlord and its agents to the books and records maintained by the Guarantor
during normal business hours and upon reasonable notice.  Any proprietary information obtained by the
Landlord with respect to the Guarantor pursuant to the provisions of this
Agreement shall be treated as confidential, except that such information may be
disclosed or used, subject to appropriate confidentiality safeguards, pursuant
to any court order or in any litigation between the parties and except further
that the Landlord may disclose such information to its prospective lenders,
provided 

 

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that
the Landlord shall direct such lenders to maintain such information as
confidential.

 

3.8  Taxes, Etc.  The Guarantor shall pay and discharge
promptly as they become due and payable all taxes, assessments and other
governmental charges or levies imposed upon the Guarantor or the income of the
Guarantor or upon any of the property, real, personal or mixed, of the
Guarantor, or upon any part thereof, as well as all claims of any kind
(including claims for labor, materials and supplies) which, if unpaid, might by
law become a lien or charge upon any property and result in a material adverse
change in the financial condition of the Guarantor; provided, however,
that the Guarantor shall not be required to pay any such tax, assessment,
charge, levy or claim if the amount, applicability or validity thereof shall
currently be contested in good faith by appropriate proceedings or other
appropriate actions promptly initiated and diligently conducted and if the
Guarantor shall have set aside on its books such reserves of the Guarantor, if
any, with respect thereto as are required by generally accepted accounting
principles.

 

3.9  Legal Existence of Guarantor. The
Guarantor shall do or cause to be done all things necessary to preserve and keep
in full force and effect its legal existence.

 

3.10  Compliance.  The Guarantor shall use reasonable business
efforts to comply in all material respects with all applicable statutes, rules,
regulations and orders of, and all applicable restrictions imposed by, all
governmental authorities in respect of the conduct of its business and the
ownership of its property (including, without limitation, applicable statutes,
rules, regulations, orders and restrictions relating to environmental, safety
and other similar standards or controls).

 

3.11  Insurance.  The Guarantor shall maintain, with
financially sound and reputable insurers, insurance with respect to its
properties and business against loss or damage of the kinds customarily insured
against by owners of established reputation engaged in the same or similar
businesses and similarly situated, in such amounts and by such methods as shall
be customary for such owners and deemed adequate by the Guarantor.

 

3.12  No Change in Control.  The Guarantor shall not permit the occurrence
of any direct or indirect Change in Control of Tenant or the Guarantor.

 

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4.                                       Guarantee.  The Guarantor hereby unconditionally
guarantees that the Guaranteed Obligations which are monetary obligations shall
be paid in full when due and payable, whether upon demand, at the stated or
accelerated maturity thereof pursuant to any Transaction Document, or
otherwise, and that the Guaranteed Obligations which are performance
obligations shall be fully performed at the times and in the manner such
performance is required by the Transaction Documents.  With respect to the Guaranteed Obligations
which are monetary obligations, this guarantee is a guarantee of payment and
not of collectibility and is absolute and in no way conditional or
contingent.  In case any part of the
Guaranteed Obligations shall not have been paid when due and payable or
performed at the time performance is required, the Guarantor shall, in the case
of monetary obligations, within five (5) Business Days after receipt of
notice from the Landlord, pay or cause to be paid to the Landlord the amount
thereof as is then due and payable and unpaid (including interest and other
charges, if any, due thereon through the date of payment in accordance with the
applicable provisions of the Transaction Documents) or, in the case of
non-monetary obligations, perform or cause to be performed such obligations in
accordance with the Transaction Documents.

 

5.                                       Set-Off.  The Guarantor hereby authorizes the Landlord,
at any time and without notice to set off the whole or any portion or portions
of any or all sums credited by or due from the Landlord to it against amounts
payable under this Agreement.  The Landlord
shall promptly notify the Guarantor of any such set-off made by the Landlord
and the application made by the Landlord of the proceeds thereof.

 

6.                                       Unenforceability
of Guaranteed Obligations, Etc.  If Tenant is for any reason under no legal
obligation to discharge any of the Guaranteed Obligations (other than because
the same have been previously discharged in accordance with the terms of the
Transaction Documents), or if any other moneys included in the Guaranteed
Obligations have become unrecoverable from Tenant by operation of law or for any
other reason, including, without limitation, the invalidity or irregularity in
whole or in part of any Guaranteed Obligation or of any Transaction Document or
any limitation on the liability of Tenant thereunder not contemplated by the
Transaction Documents or any limitation on the method or terms of payment
thereunder which may now or hereafter be caused or imposed in any manner
whatsoever, the guarantees contained in this Agreement shall nevertheless
remain in full force and effect and shall be binding upon the Guarantor 

 

5

 

to the same extent as if the
Guarantor at all times had been the principal debtor on all such Guaranteed
Obligations.

 

7.                                       Additional
Guarantees.  This
Agreement shall be in addition to any other guarantee or other security for the
Guaranteed Obligations and it shall not be prejudiced or rendered unenforceable
by the invalidity of any such other guarantee or security or by any waiver,
amendment, release or modification thereof.

 

8.                                       Consents and
Waivers, Etc.  The
Guarantor hereby acknowledges receipt of correct and complete copies of each of
the Transaction Documents, and consents to all of the terms and provisions
thereof, as the same may be from time to time hereafter amended or changed in
accordance with the terms and conditions thereof, and, except as otherwise
provided herein, to the maximum extent permitted by applicable law, waives (a) presentment,
demand for payment, and protest of nonpayment, of any principal of or interest
on any of the Guaranteed Obligations, (b) notice of acceptance of this
Agreement and of diligence, presentment, demand and protest, (c) notice of
any default hereunder and any default, breach or nonperformance or Event of
Default under any of the Guaranteed Obligations or the Transaction Documents, (d) notice
of the terms, time and place of any private or public sale of any collateral
held as security for the Guaranteed Obligations, (e) demand for
performance or observance of, and any enforcement of any provision of, or any
pursuit or exhaustion of rights or remedies against Tenant or any other
guarantor of the Guaranteed Obligations, under or pursuant to the Transaction
Documents, or any agreement directly or indirectly relating thereto and any
requirements of diligence or promptness on the part of the holders of the
Guaranteed Obligations in connection therewith, and (f) to the extent the
Guarantor lawfully may do so, any and all demands and notices of every kind and
description with respect to the foregoing or which may be required to be given
by any statute or rule of law and any defense of any kind which it may now
or hereafter have with respect to this Agreement, or any of the Transaction
Documents or the Guaranteed Obligations (other than that the same have been
discharged in accordance with the Transaction Documents).

 

9.                                       No Impairment,
Etc.  The obligations, covenants,
agreements and duties of the Guarantor under this Agreement shall not be
affected or impaired by any assignment or transfer in whole or in part of any
of the Guaranteed Obligations without notice to the Guarantor, or any waiver by
the Landlord or any holder of any of the Guaranteed Obligations or by the
holders of 

 

6

 

all of the Guaranteed Obligations
of the performance or observance by Tenant or any other guarantor of any of the
agreements, covenants, terms or conditions contained in the Guaranteed
Obligations or the Transaction Documents or any indulgence in or the extension
of the time for payment by Tenant or any other guarantor of any amounts payable
under or in connection with the Guaranteed Obligations or the Transaction
Documents or any other instrument or agreement relating to the Guaranteed
Obligations or of the time for performance by Tenant or any other guarantor of
any other obligations under or arising out of any of the foregoing or the
extension or renewal thereof (except that with respect to any extension of time
for payment or performance of any of the Guaranteed Obligations granted by the
Landlord or any other holder of such Guaranteed Obligations to Tenant, the
Guarantor’s obligations to pay or perform such Guaranteed Obligation shall be
subject to the same extension of time for performance), or the modification or
amendment (whether material or otherwise) of any duty, agreement or obligation
of Tenant or any other guarantor set forth in any of the foregoing, or the
voluntary or involuntary sale or other disposition of all or substantially all
the assets of Tenant or any other guarantor or insolvency, bankruptcy, or other
similar proceedings affecting Tenant or any other guarantor or any assets of
Tenant or any such other guarantor, or the release or discharge of Tenant or
any such other guarantor from the performance or observance of any agreement,
covenant, term or condition contained in any of the foregoing without the
consent of the holders of the Guaranteed Obligations by operation of law, or
any other cause, whether similar or dissimilar to the foregoing.

 

10.                                 Reimbursement,
Subrogation, Etc.  The
Guarantor hereby covenants and agrees that it will not enforce or otherwise
exercise any rights of reimbursement, subrogation, contribution or other
similar rights against Tenant (or any other person against whom the Landlord
may proceed) with respect to the Guaranteed Obligations prior to the payment in
full of all amounts owing with respect to the Amended Lease No. 3, and
until all indebtedness of Tenant to the Landlord shall have been paid in full,
the Guarantor shall not have any right of subrogation, and the Guarantor waives
any defense it may have based upon any election of remedies by the Landlord
which destroys its subrogation rights or its rights to proceed against Tenant
for reimbursement, including, without limitation, any loss of rights the
Guarantor may suffer by reason of any rights, powers or remedies of Tenant in
connection with any anti-deficiency laws or any other laws limiting, qualifying
or discharging the indebtedness to the Landlord.  Until all obligations of Tenant 

 

7

 

pursuant to the Transaction
Documents shall have been paid and satisfied in full, the Guarantor further
waives any right to enforce any remedy which the Landlord now has or may in the
future have against Tenant, any other guarantor or any other person and any
benefit of, or any right to participate in, any security whatsoever now or in
the future held by the Landlord.

 

11.                                 Defeasance.  This Agreement
shall terminate at such time as the Guaranteed Obligations have been paid and
performed in full and all other obligations of the Guarantor to the Landlord
under this Agreement have been satisfied in full; provided, however,
if at any time, all or any part of any payment applied on account of the
Guaranteed Obligations is or must be rescinded or returned for any reason
whatsoever (including, without limitation, the insolvency, bankruptcy or
reorganization of Tenant), this Agreement, to the extent such payment is or
must be rescinded or returned, shall be deemed to have continued in existence
notwithstanding any such termination.

 

12.                                 Notices.  (a)  Any and
all 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 written acknowledgment of receipt, or by mail or Federal
Express or similar expedited commercial carrier, addressed to the recipient of
the 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 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 acknowledged 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.

 

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(c)                                  All such notices
shall be addressed,

 

if to the Landlord to:

 

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. David
J. Hegarty

[Telecopier No. (617) 796-8349]

 

if to the Guarantor to:

 

c/o Five Star Quality Care, Inc.

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. Bruce J. Mackey Jr.

[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.

 

13.                                 Successors and
Assigns.  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, including without limitation the
holders, from time to time, of the Guaranteed Obligations; and all
representations, warranties, covenants and agreements by or on behalf of the
Guarantor which are contained in this Agreement shall inure to the benefit of
the Landlord’s successors and assigns, including without limitation said
holders, whether so expressed or not.

 

14.                                 Applicable Law.  Except as to matters regarding the internal
affairs of the Landlord and issues of or limitations on any personal liability
of the shareholders and trustees of the Landlord for obligations of the
Landlord, as to which the laws of the State of Maryland shall govern, this
Agreement, the Transaction Documents and any other instruments executed and
delivered to evidence, complete or perfect the transactions contemplated hereby
and thereby shall be interpreted, construed, applied and enforced in accordance
with the laws of The Commonwealth of Massachusetts applicable to contracts
between 

 

9

 

residents of Massachusetts
which are to be performed entirely within Massachusetts, regardless of (a) where
any such instrument is executed or delivered; or (b) where any payment or
other performance required by any such instrument is made or required to be
made; or (c) where any breach of any provision of any such instrument occurs,
or any cause of action otherwise accrues; or (d) where any action or other
proceeding is instituted or pending; or (e) the nationality, citizenship,
domicile, principal place of business, or jurisdiction of organization or
domestication of any party; or (f) whether the laws of the forum
jurisdiction otherwise would apply the laws of a jurisdiction other than The
Commonwealth of Massachusetts; or (g) any combination of the foregoing.

 

15.                                 Arbitration.  The Landlord or the
Guarantor may elect to submit to arbitration any dispute hereunder that has an
amount in controversy in excess of $250,000. 
Any such arbitration shall be conducted in Boston, Massachusetts in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association then pertaining and the decision of the arbitrators
with respect to such dispute shall be binding, final and conclusive on the
parties.

 

In the event that any such dispute is submitted to
arbitration hereunder, the Landlord and the Guarantor shall each appoint and
pay all fees of a fit and impartial person as arbitrator with at least ten (10) years’
recent professional experience in the general subject matter of the
dispute.  Notice of such appointment
shall be sent in writing by each party to the other, and the arbitrators so
appointed, in the event of their failure to agree within thirty (30) days after
the appointment of the second arbitrator upon the matter so submitted, shall
appoint a third arbitrator.  If either the
Landlord or the Guarantor shall fail to appoint an arbitrator as aforesaid for
a period of twenty (20) days after written notice from the other party to make
such appointment, then the arbitrator appointed by the party having made such
appointment shall appoint a second arbitrator and the two (2) so appointed
shall, in the event of their failure to agree upon any decision within thirty
(30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses

 

10

 

incident to the proceedings
shall be borne equally between the Landlord and the Guarantor, unless the
arbitrators decide otherwise.  The fees
of respective counsel engaged by the parties, and the fees of expert witnesses
and other witnesses called for the parties, shall be paid by the respective
party engaging such counsel or calling or engaging such witnesses.

 

The decision of the arbitrators shall be rendered
within thirty (30) days after appointment of the third arbitrator.  Such decision shall be in writing and in
duplicate, one counterpart thereof to be delivered to the applicable Landlord
and one to the Guarantor.  A judgment of
a court of competent jurisdiction may be entered upon the award of the
arbitrators in accordance with the rules and statutes applicable thereto
then obtaining.

 

The
Landlord and the Guarantor acknowledge and agree that, to the extent any such
dispute shall involve any Manager and be subject to arbitration pursuant to
such Manager’s Management Agreement, the Landlord and the Guarantor shall
cooperate to consolidate any such arbitration hereunder and under such
Management Agreement into a single proceeding.

 

16.                                 Modification of
Agreement.  No
modification or waiver of any provision of this Agreement, nor any consent to
any departure by the Guarantor therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Landlord, and such
modification, waiver or consent shall be effective only in the specific
instances and for the purpose for which given. 
No notice to or demand on the Guarantor in any case shall entitle the
Guarantor to any other or further notice or demand in the same, similar or
other circumstances.  This Agreement may
not be amended except by an instrument in writing executed by or on behalf of
the party against whom enforcement of such amendment is sought.

 

17.                                 Waiver of
Rights by the Landlord. 
Neither any failure nor any delay on the Landlord’s part in exercising
any right, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise or the exercise of any other right, power or privilege.

 

18.                                 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

 

11

 

Agreement shall be reformed
and construed and enforced to the maximum extent permitted by applicable law.

 

19.                                 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.

 

20.                                 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.

 

21.                                 Remedies
Cumulative.  No remedy
herein conferred upon the Landlord is intended to be exclusive of any other
remedy, and each and every remedy shall be cumulative and shall be in addition
to every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute or otherwise.

 

22.                                 NON-LIABILITY
OF TRUSTEES. THE DECLARATIONS OF TRUST ESTABLISHING CERTAIN
ENTITIES COMPRISING THE LANDLORD, COPIES OF WHICH, TOGETHER WITH ALL AMENDMENTS
THERETO (THE “DECLARATIONS”), ARE DULY FILED WITH THE DEPARTMENT OF
ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDE THAT THE NAMES “  SNH SOMERFORD PROPERTIES
TRUST”, “SPTIHS PROPERTIES TRUST” and “SPTMNR PROPERTIES TRUST” REFER TO THE
TRUSTEES UNDER THE DECLARATIONS COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY
OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF
SUCH ENTITIES SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR
ANY OBLIGATION OF OR CLAIM AGAINST, SUCH ENTITIES.  ALL PERSONS DEALING WITH SUCH ENTITIES, IN
ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF SUCH ENTITIES FOR THE PAYMENT OF ANY
SUM OR THE PERFORMANCE OF ANY OBLIGATION.

 

23.                                 Original
Guaranty.  The Guarantor
and the Landlord acknowledge and agree that this Agreement amends and restates
the Original Guaranty in its entirety with respect to the Guaranteed
Obligations and that this Agreement shall govern the rights and obligations of
the Guarantor with respect to the Guaranteed Obligations from and after the
date of this Agreement.  Notwithstanding
the foregoing, the Original Guaranty shall continue to govern the rights and
obligations of the 

 

12

 

Guarantor with respect to
the Guaranteed Obligations (as defined in the Original Guaranty) prior to the
date of this Agreement and nothing contained in this Agreement shall operate to
release the Guarantor from any such rights or obligations.

 

[Remainder of page intentionally left blank.]

 

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WITNESS the execution hereof under seal as of the date
above first written.

 

	
   

  	
  FIVE
  STAR QUALITY CARE, INC.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/  Bruce
  J. Mackey Jr.

  
	
   

  	
   

  	
  Bruce
  J. Mackey Jr.

  
	
   

  	
   

  	
  President

  

 

 

THE
LANDLORD HEREBY CONSENTS TO THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE
GUARANTOR AND FURTHER ACKNOWLEDGES AND AGREES TO THE PROVISIONS OF SECTION 23
OF THIS AGREEMENT.

 

SNH
SOMERFORD PROPERTIES 

TRUST, SPTIHS PROPERTIES 

TRUST, and SPTMNR
PROPERTIES 

TRUST

 

 

	
  By:

  	
       /s/  Richard A. Doyle

  	
   

  
	
   

  	
  Richard A. Doyle

  
	
   

  	
  Treasurer and Chief 

  
	
   

  	
  Financial OfficerExhibit 10.15

 

AMENDED
AND RESTATED SUBTENANT GUARANTY AGREEMENT

 

(LEASE
NO. 3)

 

THIS
AMENDED AND RESTATED SUBTENANT GUARANTY AGREEMENT (this “Agreement”) is made and
given as of June 30th, 2008, by each of the parties listed on the
signature page hereof as a Subtenant Guarantor (each a “Subtenant
Guarantor” and collectively, the “Subtenant Guarantors”), for the
benefit of SNH SOMERFORD PROPERTIES TRUST, a Maryland real
estate investment trust, SPTIHS PROPERTIES
TRUST, a Maryland real estate investment trust, and SPTMNR PROPERTIES TRUST, a Maryland real
estate investment trust (together with their successors and assigns,
collectively, the “Landlord”).

 

W
I  T  N  E  S  S  E  T  H
:

 

WHEREAS, the Landlord
and Five Star Quality Care Trust, a Maryland business trust (“Tenant”),
are parties to that certain Second Amended and Restated Lease Agreement, dated
as of November 19, 2004, as the same has been amended to date (as so
amended, the “Original Lease”); and

 

WHERAS, pursuant to
various Sublease Agreements, dated as of various dates, Tenant has subleased
certain portions of the premises demised under the Original Lease to the
Subtenant Guarantors; and

 

WHEREAS, in connection with the Original Lease,
the Subtenant Guarantors guarantee all of the payment and performance obligations
of Tenant with respect to the Original Lease, pursuant to that certain Guaranty
Agreement dated as of October 25, 2002, as confirmed from time to time (as
so confirmed, the “Original Guaranty”); and

 

WHEREAS, as of the date hereof the Landlord and Tenant are
amending, restating and bifurcating the Original Lease into two separate
leases, one of which shall be named the Amended and Restated Master Lease
Agreement (Lease No. 3), (the “Amended Lease No. 3”); and

 

WHEREAS, Subtenant
Guarantors and the Landlord now wish to amend, restate and bifurcate the
Original Guaranty into two separate guarantees, one of which shall provide for
the 

 

 

Subtenant Guarantors to
guaranty the obligations of Tenant under the Amended Lease No. 3; and

 

WHEREAS, the transactions contemplated by the
Amended Lease No. 3 are of direct material benefit to the Subtenant
Guarantors;

 

NOW,
THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the mutual receipt and legal sufficiency of which are hereby acknowledged, the
Original Guaranty is amended and restated to read as follows:

 

1.                                       Certain Terms.  Capitalized
terms used and not otherwise defined in this Agreement shall have the meanings
ascribed to such terms in the Amended Lease No. 3.  The Amended Lease No. 3 and the
Incidental Documents are herein collectively referred to as the “Transaction
Documents.”

 

2.                                       Guaranteed Obligations.  For purposes
of this Agreement the term “Guaranteed Obligations” shall mean the
payment and performance of each and every obligation of Tenant to the Landlord
under the Amended Lease No. 3 and the Transaction Documents or relating
thereto, whether now existing or hereafter arising, and including, without
limitation, the payment of the full amount of the Rent payable under the
Amended Lease No. 3.

 

3.                                       Representations and Covenants. 
Each Subtenant Guarantor jointly and severally represents, warrants,
covenants, and agrees that:

 

3.1              Incorporation of
Representations and Warranties.  The
representations and warranties of Tenant and its Affiliated Persons set forth
in the Transaction Documents are true and correct on and as of the date hereof
in all material respects.

 

3.2              Performance of
Covenants and Agreements.  Each
Subtenant Guarantor hereby agrees to take all lawful action in its power to
cause Tenant duly and punctually to perform all of the covenants and agreements
set forth in the Transaction Documents.

 

3.3              Validity of
Agreement.  Each Subtenant Guarantor
has duly and validly executed and delivered this Agreement; this Agreement
constitutes the legal, valid and binding obligation of such Subtenant
Guarantor, enforceable against such Subtenant Guarantor in accordance with its
terms, except as the enforceability thereof may be subject to bankruptcy,
fraudulent 

 

2

 

conveyance, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors’
rights generally and subject to general equitable principles, regardless of
whether enforceability is considered in a proceeding at law or in equity; and
the execution, delivery and performance of this Agreement have been duly
authorized by all requisite action of such Subtenant Guarantor and such
execution, delivery and performance by such Subtenant Guarantor will not result
in any breach of the terms, conditions or provisions of, or conflict with or
constitute a default under, or result in the creation of any lien, charge or
encumbrance upon any of the property or assets of such Subtenant Guarantor pursuant
to the terms of, any indenture, mortgage, deed of trust, note, other evidence
of indebtedness, agreement or other instrument to which it may be a party or by
which it or any of its property or assets may be bound, or violate any
provision of law, or any applicable order, writ, injunction, judgment or decree
of any court or any order or other public regulation of any governmental
commission, bureau or administrative agency.

 

3.4              Payment of
Expenses.  Each Subtenant Guarantor
agrees, as principal obligor and not as guarantor only, to pay to the Landlord
forthwith, upon demand, in immediately available federal funds, all costs and
expenses (including reasonable attorneys’ fees and disbursements) incurred or
expended by the Landlord in connection with the enforcement of this Agreement,
together with interest on amounts recoverable under this Agreement from the
time such amounts become due until payment at the Overdue Rate.  The Subtenant Guarantors’ covenants and
agreements set forth in this Section 3.4 shall survive the
termination of this Agreement.

 

3.5              Notices.  Each Subtenant Guarantor shall promptly give
notice to the Landlord of any event known to it which might reasonably result
in a material adverse change in its financial condition.

 

3.6              Reports.  Each Subtenant Guarantor shall promptly
provide to the Landlord each of the financial reports, certificates and other
documents required of it under the Transaction Documents.

 

3.7              Books and Records.  Each Subtenant Guarantor shall at all times
keep proper books of record and account in which full, true and correct entries
shall be made of its transactions in accordance with generally accepted
accounting principles and shall set aside on its books from its earnings for
each fiscal year all such proper reserves, including 

 

3

 

reserves for
depreciation, depletion, obsolescence and amortization of its properties during
such fiscal year, as shall be required in accordance with generally accepted
accounting principles, consistently applied, in connection with its
business.  Each Subtenant Guarantor shall
permit access by the Landlord and their agents to the books and records
maintained by such Subtenant Guarantor during normal business hours and upon
reasonable notice.  Any proprietary
information obtained by the Landlord with respect to such Subtenant Guarantor
pursuant to the provisions of this Agreement shall be treated as confidential,
except that such information may be disclosed or used, subject to appropriate confidentiality
safeguards, pursuant to any court order or in any litigation between the
parties and except further that the Landlord may disclose such information to
its prospective lenders, provided that the Landlord shall direct such lenders
to maintain such information as confidential.

 

3.8              Taxes, Etc.  Each Subtenant Guarantor shall pay and
discharge promptly as they become due and payable all taxes, assessments and
other governmental charges or levies imposed upon such Subtenant Guarantor or
the income of such Subtenant Guarantor or upon any of the property, real,
personal or mixed, of such Subtenant Guarantor, or upon any part thereof, as
well as all claims of any kind (including claims for labor, materials and
supplies) which, if unpaid, might by law become a lien or charge upon any
property and result in a material adverse change in the financial condition of
such Subtenant Guarantor; provided, however, that such Subtenant
Guarantor shall not be required to pay any such tax, assessment, charge, levy or
claim if the amount, applicability or validity thereof shall currently be
contested in good faith by appropriate proceedings or other appropriate actions
promptly initiated and diligently conducted and if such Subtenant Guarantor
shall have set aside on its books such reserves of such Subtenant Guarantor, if
any, with respect thereto as are required by generally accepted accounting
principles.

 

3.9              Legal Existence
of Subtenant Guarantors. Each Subtenant Guarantor shall do or cause to be
done all things necessary to preserve and keep in full force and effect its
legal existence.

 

3.10        Compliance.  Each Subtenant Guarantor shall use reasonable
business efforts to comply in all material respects with all applicable statutes,
rules, regulations and orders of, and all applicable restrictions imposed by,
all governmental authorities in respect of the conduct of its business and the 

 

4

 

ownership of its property
(including, without limitation, applicable statutes, rules, regulations, orders
and restrictions relating to environmental, safety and other similar standards
or controls).

 

3.11        Insurance.  Each Subtenant Guarantor shall maintain, with
financially sound and reputable insurers, insurance with respect to its properties
and business against loss or damage of the kinds customarily insured against by
owners of established reputation engaged in the same or similar businesses and
similarly situated, in such amounts and by such methods as shall be customary
for such owners and deemed adequate by such Subtenant Guarantor.

 

3.12        Financial Statements,
Etc.  The financial statements
previously delivered to the Landlord by each Subtenant Guarantor, if any,
fairly present the financial condition of such Subtenant Guarantor in
accordance with generally accepted accounting principles consistently applied
and there has been no material adverse change from the date thereof through the
date hereof.

 

3.13        No Change in Control.  No Subtenant Guarantor shall permit the
occurrence of any direct or indirect Change in Control of Tenant or of such
Subtenant Guarantor.

 

4.                                       Guarantee.  Each
Subtenant Guarantor hereby unconditionally guarantees that the Guaranteed
Obligations which are monetary obligations shall be paid in full when due and
payable, whether upon demand, at the stated or accelerated maturity thereof
pursuant to any Transaction Document, or otherwise, and that the Guaranteed
Obligations which are performance obligations shall be fully performed at the
times and in the manner such performance is required by the Transaction
Documents.  With respect to the
Guaranteed Obligations which are monetary obligations, this guarantee is a
guarantee of payment and not of collectibility and is absolute and in no way
conditional or contingent.  In case any
part of the Guaranteed Obligations shall not have been paid when due and
payable or performed at the time performance is required, the Subtenant
Guarantors shall, in the case of monetary obligations, within five (5) Business
Days after receipt of notice from the Landlord, pay or cause to be paid to the
Landlord the amount thereof as is then due and payable and unpaid (including
interest and other charges, if any, due thereon through the date of payment in
accordance with the applicable provisions of the Transaction Documents) or, in
the case of non-monetary 

 

5

 

obligations, perform or cause to be performed such
obligations in accordance with the Transaction Documents.

 

5.                                       Set-Off.  Each Subtenant
Guarantor hereby authorizes the Landlord, at any time and without notice to set
off the whole or any portion or portions of any or all sums credited by or due
from the Landlord to it against amounts payable under this Agreement.  The Landlord shall promptly notify such
Subtenant Guarantor of any such set-off made by the Landlord and the
application made by the Landlord of the proceeds thereof.

 

6.                                       Unenforceability of Guaranteed
Obligations, Etc.  If Tenant is for any reason under no legal
obligation to discharge any of the Guaranteed Obligations (other than because
the same have been previously discharged in accordance with the terms of the
Transaction Documents), or if any other moneys included in the Guaranteed
Obligations have become unrecoverable from Tenant by operation of law or for
any other reason, including, without limitation, the invalidity or irregularity
in whole or in part of any Guaranteed Obligation or of any Transaction Document
or any limitation on the liability of Tenant thereunder not contemplated by the
Transaction Documents or any limitation on the method or terms of payment
thereunder which may now or hereafter be caused or imposed in any manner
whatsoever, the guarantees contained in this Agreement shall nevertheless
remain in full force and effect and shall be binding upon each Subtenant
Guarantor to the same extent as if such Subtenant Guarantor at all times had
been the principal debtor on all such Guaranteed Obligations.

 

7.                                       Additional Guarantees. 
This Agreement shall be in addition to any other guarantee or other
security for the Guaranteed Obligations and it shall not be prejudiced or
rendered unenforceable by the invalidity of any such other guarantee or
security or by any waiver, amendment, release or modification thereof.

 

8.                                       Consents and Waivers, Etc. 
Each Subtenant Guarantor hereby acknowledges receipt of correct and
complete copies of each of the Transaction Documents, and consents to all of
the terms and provisions thereof, as the same may be from time to time
hereafter amended or changed in accordance with the terms and conditions
thereof, and, except as otherwise provided herein, to the maximum extent
permitted by applicable law, waives (a) presentment, demand for payment,
and protest of nonpayment, of any principal of or interest on any of the
Guaranteed Obligations, (b) notice of acceptance of this Agreement and of
diligence, presentment, demand and protest, 

 

6

 

(c) notice of any default hereunder and any
default, breach or nonperformance or Event of Default under any of the
Guaranteed Obligations or the Transaction Documents, (d) notice of the
terms, time and place of any private or public sale of any collateral held as
security for the Guaranteed Obligations, (e) demand for performance or
observance of, and any enforcement of any provision of, or any pursuit or
exhaustion of rights or remedies against Tenant or any other guarantor of the
Guaranteed Obligations, under or pursuant to the Transaction Documents, or any
agreement directly or indirectly relating thereto and any requirements of
diligence or promptness on the part of the holders of the Guaranteed
Obligations in connection therewith, and (f) to the extent such Subtenant
Guarantor lawfully may do so, any and all demands and notices of every kind and
description with respect to the foregoing or which may be required to be given
by any statute or rule of law and any defense of any kind which it may now
or hereafter have with respect to this Agreement, or any of the Transaction
Documents or the Guaranteed Obligations (other than that the same have been
discharged in accordance with the Transaction Documents).

 

9.                                       No Impairment, Etc. 
The obligations, covenants, agreements and duties of each of the
Subtenant Guarantors under this Agreement shall not be affected or impaired by
any assignment or transfer in whole or in part of any of the Guaranteed
Obligations without notice to each such Subtenant Guarantor, or any waiver by
the Landlord or any holder of any of the Guaranteed Obligations or by the
holders of all of the Guaranteed Obligations of the performance or observance
by Tenant or any other guarantor of any of the agreements, covenants, terms or
conditions contained in the Guaranteed Obligations or the Transaction Documents
or any indulgence in or the extension of the time for payment by Tenant or any
other guarantor of any amounts payable under or in connection with the
Guaranteed Obligations or the Transaction Documents or any other instrument or
agreement relating to the Guaranteed Obligations or of the time for performance
by Tenant or any other guarantor of any other obligations under or arising out
of any of the foregoing or the extension or renewal thereof (except that with
respect to any extension of time for payment or performance of any of the
Guaranteed Obligations granted by the Landlord or any other holder of such
Guaranteed Obligations to Tenant, such Subtenant Guarantor’s obligations to pay
or perform such Guaranteed Obligation shall be subject to the same extension of
time for performance), or the modification or amendment (whether material or
otherwise) of any duty, agreement or obligation of Tenant or any other
guarantor set forth in any of the foregoing, 

 

7

 

or the voluntary or involuntary sale or other
disposition of all or substantially all the assets of Tenant or any other
guarantor or insolvency, bankruptcy, or other similar proceedings affecting
Tenant or any other guarantor or any assets of Tenant or any such other
guarantor, or the release or discharge of Tenant or any such other guarantor
from the performance or observance of any agreement, covenant, term or
condition contained in any of the foregoing without the consent of the holders
of the Guaranteed Obligations by operation of law, or any other cause, whether
similar or dissimilar to the foregoing.

 

10.                                 Reimbursement, Subrogation, Etc. 
Each Subtenant Guarantor hereby covenants and agrees that it will not
enforce or otherwise exercise any rights of reimbursement, subrogation,
contribution or other similar rights against Tenant (or any other person
against whom the Landlord may proceed) with respect to the Guaranteed
Obligations prior to the payment in full of all amounts owing with respect to
the Amended Lease No. 3, and until all indebtedness of Tenant to the
Landlord shall have been paid in full, no Subtenant Guarantor shall have any
right of subrogation, and each Subtenant Guarantor waives any defense it may
have based upon any election of remedies by the Landlord which destroys its
subrogation rights or its rights to proceed against Tenant for reimbursement,
including, without limitation, any loss of rights such Subtenant Guarantor may
suffer by reason of any rights, powers or remedies of Tenant in connection with
any anti-deficiency laws or any other laws limiting, qualifying or discharging
the indebtedness to the Landlord.  Until
all obligations of Tenant pursuant to the Transaction Documents shall have been
paid and satisfied in full, each Subtenant Guarantor further waives any right
to enforce any remedy which the Landlord now has or may in the future have
against Tenant, any other guarantor or any other person and any benefit of, or
any right to participate in, any security whatsoever now or in the future held
by the Landlord.

 

11.                                 Defeasance. 
This Agreement shall terminate at such time as the Guaranteed
Obligations have been paid and performed in full and all other obligations of
the Subtenant Guarantors to the Landlord under this Agreement have been
satisfied in full; provided, however, if at any time, all or any
part of any payment applied on account of the Guaranteed Obligations is or must
be rescinded or returned for any reason whatsoever (including, without
limitation, the insolvency, bankruptcy or reorganization of Tenant), this
Agreement, to the extent such payment is or must be rescinded or returned,
shall be deemed to 

 

8

 

have continued in existence notwithstanding any such
termination.

 

12.                                 Notices. 
(a)  Any and all 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 written acknowledgment of receipt,
or by mail or Federal Express or similar expedited commercial carrier,
addressed to the recipient of the 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 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 acknowledged 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
the Landlord to:

 

c/o
Senior Housing Properties Trust

400
Centre Street

Newton,
Massachusetts  02458

Attn:  Mr. David J. Hegarty

[Telecopier No. (617)
796-8349]

 

if to
any Subtenant Guarantor to:

 

c/o
Five Star Quality Care, Inc.

400
Centre Street

Newton,
Massachusetts  02458

Attn:  Mr. Bruce J. Mackey Jr.

[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 

 

9

 

the right to specify as its address any other address
within the United States of America.

 

13.                                 Successors and Assigns. 
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, including without limitation the holders, from time to time, of the
Guaranteed Obligations; and all representations, warranties, covenants and
agreements by or on behalf of the Subtenant Guarantors which are contained in
this Agreement shall inure to the benefit of the Landlord’s successors and
assigns, including without limitation said holders, whether so expressed or
not.

 

14.                                 Applicable Law. 
Except as to matters regarding the internal affairs of the Landlord and
issues of or limitations on any personal liability of the shareholders and
trustees of the Landlord for obligations of the Landlord, as to which the laws
of the State of Maryland shall govern, this Agreement, the Transaction
Documents and any other instruments executed and delivered to evidence,
complete or perfect the transactions contemplated hereby and thereby 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 (a) where any such instrument is executed or delivered; or (b) where
any payment or other performance required by any such instrument is made or
required to be made; or (c) where any breach of any provision of any such
instrument occurs, or any cause of action otherwise accrues; or (d) where
any action or other proceeding is instituted or pending; or (e) the
nationality, citizenship, domicile, principal place of business, or
jurisdiction of organization or domestication of any party; or (f) whether
the laws of the forum jurisdiction otherwise would apply the laws of a
jurisdiction other than The Commonwealth of Massachusetts; or (g) any
combination of the foregoing.

 

15.                                 Arbitration.  The Landlord or the Subtenant Guarantors may elect to
submit to arbitration any dispute hereunder that has an amount in controversy
in excess of $250,000.  Any such
arbitration submitted shall be conducted in Boston, Massachusetts in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association then pertaining and the decision of the arbitrators with respect to
such dispute shall be binding, final and conclusive on the parties.

 

In the
event that any such dispute is submitted to arbitration hereunder, the Landlord
and the Subtenant Guarantors 

 

10

 

shall each appoint and pay all fees of a fit and
impartial person as arbitrator with at least ten (10) years’ recent
professional experience in the general subject matter of the dispute.  Notice of such appointment shall be sent in
writing by each party to the other, and the arbitrators so appointed, in the
event of their failure to agree within thirty (30) days after the appointment
of the second arbitrator upon the matter so submitted, shall appoint a third
arbitrator.  If either the Landlord or
the Subtenant Guarantors shall fail to appoint an arbitrator as aforesaid for a
period of twenty (20) days after written notice from the other party to make
such appointment, then the arbitrator appointed by the party having made such
appointment shall appoint a second arbitrator and the two (2) so appointed
shall, in the event of their failure to agree upon any decision within thirty
(30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses incident to the proceedings shall be borne equally between the
Landlord and the Subtenant Guarantors, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for the
parties, shall be paid by the respective party engaging such counsel or calling
or engaging such witnesses.

 

The
decision of the arbitrators shall be rendered within thirty (30) days after
appointment of the third arbitrator. 
Such decision shall be in writing and in duplicate, one counterpart
thereof to be delivered to the Landlord and one to the Subtenant Guarantors.  A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrators in accordance
with the rules and statutes applicable thereto then obtaining.

 

16.                                 Modification of Agreement. 
No modification or waiver of any provision of this Agreement, nor any
consent to any departure by any of the Subtenant Guarantors therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
Landlord, and such modification, waiver or consent shall be effective only in
the specific instances and for the purpose for which given.  No notice to or demand on any Subtenant
Guarantor in any case shall entitle such Subtenant 

 

11

 

Guarantor to any other or further notice or demand in
the same, similar or other circumstances. 
This Agreement may not be amended except by an instrument in writing
executed by or on behalf of the party against whom enforcement of such
amendment is sought.

 

17.                                 Waiver of Rights by the Landlord. 
Neither any failure nor any delay on the Landlord’s part in exercising
any right, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise or the exercise of any other right, power or privilege.

 

18.                                 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.

 

19.                                 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.

 

20.                                 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.

 

21.                                 Remedies Cumulative. 
No remedy herein conferred upon the Landlord is intended to be exclusive
of any other remedy, and each and every remedy shall be cumulative and shall be
in addition to every other remedy given hereunder or now or hereafter existing
at law or in equity or by statute or otherwise.

 

22.                                 NONLIABILITY OF TRUSTEES. 
THE DECLARATIONS OF TRUST ESTABLISHING CERTAIN ENTITIES COMPRISING THE
LANDLORD, COPIES OF WHICH, TOGETHER WITH ALL AMENDMENTS THERETO (COLLECTIVELY,
THE “DECLARATIONS”), ARE DULY FILED WITH THE DEPARTMENT OF ASSESSMENTS
AND TAXATION OF THE STATE OF MARYLAND, PROVIDE THAT 

 

12

 

THE NAMES OF SUCH
ENTITIES REFER TO THE TRUSTEES UNDER SUCH DECLARATIONS COLLECTIVELY AS
TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER,
SHAREHOLDER, EMPLOYEE OR AGENT OF SUCH ENTITIES SHALL BE HELD TO ANY PERSONAL
LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM AGAINST, SUCH
ENTITIES.  ALL PERSONS DEALING WITH SUCH
ENTITIES, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF SUCH ENTITIES FOR THE
PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

 

23.                                 Original Guaranty. 
The Subtenant Guarantors and the Landlord acknowledge and agree that
this Agreement amends and restates the Original Guaranty in its entirety with
respect to the Guaranteed Obligations and that this Agreement shall govern the
rights and obligations of the Subtenant Guarantors with respect to the
Guaranteed Obligations from and after the date of this Agreement.  Notwithstanding the
foregoing, the Original Guaranty shall continue to govern the rights and
obligations of the Subtenant
Guarantors with respect to the Guaranteed Obligations (as defined in the Original
Guaranty) prior to the date of this Agreement and nothing contained in this
Agreement shall operate to release the Subtenant Guarantors from any such rights or
obligations.

 

[Remainder of page intentionally left blank.]

 

13

 

WITNESS
the execution hereof under seal as of the date above first written.

 

	
   

  	
  SUBTENANT
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  FIVE STAR QUALITY CARE-CA II, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-COLORADO, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-GA, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-IA, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-KS, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-MO, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-NE, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-WI, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-WY, LLC,

  
	
   

  	
  FIVE STAR QUALITY CARE-NE, INC.,

  
	
   

  	
  ANNAPOLIS HERITAGE PARTNERS, LLC,

  
	
   

  	
  COLUMBIA HERITAGE PARTNERS, LLC

  
	
   

  	
  ENCINITAS HERITAGE PARTNERS, LLC

  
	
   

  	
  FREDERICK HERITAGE PARTNERS, LLC

  
	
   

  	
  HAGERSTOWN HERITAGE PARTNERS, LLC

  
	
   

  	
  NEWARK HERITAGE PARTNERS I, LLC

  
	
   

  	
  NEWARK HERITAGE PARTNERS II, LLC

  
	
   

  	
  REDLANDS HERITAGE PARTNERS, LLC and

  
	
   

  	
  STOCKTON HERITAGE PARTNERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Travis K. Smith

  
	
   

  	
   

  	
  Travis
  K. Smith

  
	
   

  	
   

  	
  Vice
  President of each of the

  
	
   

  	
   

  	
  foregoing
  entities

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRESNO HERITAGE PARTNERS, A

  
	
   

  	
  CALIFORNIA LIMITED PARTNERSHIP and

  
	
   

  	
  ROSEVILLE HERITAGE PARTNERS, A

  
	
   

  	
  CALIFORNIA LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Somerford Place LLC,

  
	
   

  	
   

  	
  General Partner of each of
  the

  
	
   

  	
   

  	
  foregoing entities

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Travis K. Smith

  
	
   

  	
   

  	
   

  	
  Travis K. Smith

  
	
   

  	
   

  	
   

  	
  Vice President

  
					

 

 

THE
LANDLORD HEREBY CONSENTS TO THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE
GUARANTOR AND FURTHER ACKNOWLEDGES AND AGREES TO THE PROVISIONS OF SECTION 23
OF THIS AGREEMENT.

 

SPTIHS
PROPERTIES TRUST,

SPTMNR PROPERTIES TRUST, and
 SNH SOMERFORD PROPERTIES

TRUST

 

 

	
  By:

  	
  /s/ Richard A. Doyle

  	
   

  
	
   

  	
  Richard A. Doyle

  
	
   

  	
  Treasurer and Chief

  
	
   

  	
  Financial Officer of

  
	
   

  	
  each of the foregoing

  
	
   

  	
  entities

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]