Document:

ex10-1.htm

    Exhibit
      10.1

    

    FIFTH
      AMENDMENT TO CREDIT AND SECURITY AGREEMENT

    

    

    THIS
      FIFTH AMENDMENT TO CREDIT AND
      SECURITY AGREEMENT (this “Amendment”) dated as of June 18, 2007 by and among
      FIVE STAR QUALITY CARE, INC. (the “Borrower”), each of the parties identified as
“Guarantor” on the signature pages hereto (each a “Guarantor”), and WACHOVIA
      BANK, NATIONAL ASSOCIATION, as Lender (the “Lender”).

    

    WHEREAS,
      the Borrower and the Lender
      have entered into that certain Credit and Security Agreement dated as of
      May 9, 2005 (as amended and in effect immediately prior to the date
      hereof, the “Credit Agreement”); and

    

    WHEREAS,
      the Borrower and the Lender
      desire to amend certain provisions of the Credit Agreement on the terms and
      conditions contained herein.

    

    NOW,
      THEREFORE, for good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged
      by
      the parties hereto, the parties hereto hereby agree as follows:

    

    Section 1.  Specific
      Amendments to Credit Agreement.  The parties hereto agree that the
      Credit Agreement is amended as follows:

    

    (a)           The
      Credit Agreement is amended by restating in full the definition of “Termination
      Date” contained Section 1.1 as follows:

     

                                   
      “Termination Date” means May 8, 2009.

    

                   
      (b)           The Credit
      Agreement is further amended by amending and restating Section 2.15 in its
      entirety as follows:

    

    Section 2.15.
      Increase of Commitment.

    

    The
      Borrower may request that the
      Lender increase the amount of the Commitment to an amount not to exceed
      $80,000,000 by delivering a written request to the Lender at least 60 days
      but
      not more than 30 days prior to the proposed effective date of such increase.
      If
      the Lender has not notified the Borrower regarding such requested increase
      by
      the date 15 days prior to the proposed effective date of the increase, then
      the
      Lender shall be deemed to have denied the requested increase.  The
      Borrower understands that this Section has been included in this Agreement
      for
      its convenience in requesting an increase of the amount of the Commitment and
      the Borrower acknowledges that the Lender (a) has not promised (either
      expressly or impliedly), and has no obligation or commitment whatsoever, to
      agree to any such increase and (ii) may impose such

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    conditions
      to any such increase as the Lender deems appropriate in its sole and absolute
      discretion.

    

    (c)           The
      Credit Agreement is amended by deleting Exhibit D thereto and substituting
      in
      its place Exhibit D attached hereto.

    

    (d)           The
      “Commitment Amount” appearing on the Lender’s signature page to the Credit
      Agreement is deleted and replaced by the “Commitment Amount” appearing on the
      Lender’s signature page to this Amendment.

    

    Section
      2.  Specific Amendment to Fee Letter.  The parties
      hereto agree that the second full paragraph of the second page of the Fee Letter
      is amended and restated as follows:

    

    The
      term “Applicable Margin” means
      1.25% with respect to LIBOR Loans and 0.25% with respect to Base Rate
      Loans.

    

    Section
      3.  Conditions
      Precedent.  The effectiveness of this Amendment is subject to
      receipt by the Lender of each of the following, each in form and substance
      satisfactory to the Lender:

    

    (a)           A
      counterpart of this Amendment duly executed by the Borrower and each
      Guarantor;

    

    (b)           Borrower
      shall have paid the Fees payable under the Fee Letter payable with respect
      to
      extensions of the Termination Date pursuant to Section 2.11 of the Credit
      Agreement;

    

    (c)           An
      opinion of counsel to the Loan Parties addressed to the Lender;

    

    (d)           A
      Note, executed by the borrower, in the form attached hereto as Exhibit D (the
      “Restated Note”); and

    

    (e)           Such
      other documents, instruments and agreements as the Lender may reasonably
      request.

    

    Section 4.  Effectiveness.
      Upon satisfaction of the conditions precedent contained in Section 3, this
      Amendment shall be deemed to be effective as of the date hereof.

    

    Section 5.  Representations.  The
      Borrower represents and warrants to the Lender that:

    

    (a)           Authorization.  The
      Borrower has the right and power, and has taken all necessary action to
      authorize it, to execute and deliver this Amendment and the Restated Note and
      to
      perform its obligations hereunder and under the Credit Agreement and the Fee
      Letter, each as amended by this Amendment, in accordance with their respective
      terms.  This Amendment and the Restated Note have been duly executed
      and delivered by a duly authorized officer of the Borrower and this Amendment,
      the Restated Note, the Credit Agreement and the Fee Letter, each as amended
      by
      this Amendment, is a legal, valid and binding obligation of the
      Borrower

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    enforceable
      against the Borrower in accordance with its respective terms except as (i)
      the
      enforceability thereof may be limited by bankruptcy, insolvency or similar
      laws
      affecting creditors rights generally and (ii) the availability of equitable
      remedies may be limited by equitable principles of general
      applicability.

    

    (b)           Compliance
      with Laws, etc.  The execution and delivery by the Borrower of
      this Amendment and the Restated Note and the performance by the Borrower of
      this
      Amendment, the Credit Agreement and the Fee Letter, each as amended by this
      Amendment and the Restated Note, in accordance with their respective terms,
      do
      not and will not, by the passage of time, the giving of notice or
      otherwise:  (i) require any Governmental Approval or violate any
      Applicable Law relating to any Loan Party; (ii) conflict with, result in a
      breach of or constitute a default under the organizational documents of any
      Loan
      Party, or any indenture, agreement or other instrument to which any Loan Party
      is a party or by which it or any of its respective properties may be bound;
      or
      (iii) result in or require the creation or imposition of any Lien upon or
      with respect to any property now owned or hereafter acquired by any Loan
      Party.

    

    (c)           No
      Default.  No Default or Event of Default has occurred and is
      continuing as of the date hereof nor will exist immediately after giving effect
      to this Amendment.

    

    Section 6.  Reaffirmation
      of
      Representations by Borrower.  The Borrower hereby repeats and
      reaffirms all representations and warranties made by the Borrower to the Lender
      in the Credit Agreement and the other Loan Documents to which it is a party
      on
      and as of the date hereof and after giving effect to this Amendment with the
      same force and effect as if such representations and warranties were set forth
      in this Amendment in full.

    

    Section 7.  Reaffirmation
      of
      Guaranty by Guarantors.  Each Guarantor hereby reaffirms its
      continuing obligations to the Lender under Article XII of the Credit
      Agreement and agrees that the transactions contemplated by this Amendment
      (including, without limitation, the Borrower’s execution and delivery of the
      Restated Note) shall not in any way affect the validity and enforceability
      of
      its obligations under Article XII of the Credit Agreement, or reduce,
      impair or discharge the obligations of such Guarantor thereunder.

    

    Section 8.  Certain
      References.  Each reference to the Credit Agreement and the Fee
      Letter in any of the Loan Documents shall be deemed to be a reference to the
      Credit Agreement and the Fee Letter, as applicable, as amended by this
      Amendment, and each reference to the Note shall be deemed to be a reference
      to
      the Restated Note.

    

    Section 9.  Expenses.  The
      Borrower shall reimburse the Lender upon demand for all costs and expenses
      (including attorneys’ fees) incurred by the Lender in connection with the
      preparation, negotiation and execution of this Amendment, the Restated Note
      and
      the other agreements and documents executed and delivered in connection
      herewith.

    

    Section 10.  Benefits.  This
      Amendment shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective successors and assigns.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    Section 11.  GOVERNING
      LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
      ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
      EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

    

    Section 12.  Effect.  Except
      as expressly herein amended, the terms and conditions of the Credit Agreement,
      the Fee Letter and the other Loan Documents remain in full force and
      effect.  The amendments contained herein shall be deemed to have
      prospective application only, unless otherwise specifically stated
      herein.

    

    Section 13.  Counterparts.  This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original and shall be binding upon all parties, their successors
      and assigns.

    

    Section 14.  Definitions.  All
      capitalized terms not otherwise defined herein are used herein with the
      respective definitions given them in the Credit Agreement.

    

    [Signatures
      on Next Page]

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto
      have caused this Fifth Amendment to Credit and Security Agreement to be executed
      as of the date first above written.

    

    
      	 	
              THE
                BORROWER:

            
	 	 
	 	
              FIVE
                STAR QUALITY CARE, INC.

            
	 	 
	 	 
	 	
              By:  /s/
                Bruce J Mackey Jr.

            
	 	
              Name:
                Bruce J. Mackey
                Jr.

            
	 	
              Title:
                Treasurer, Chief
                Financial Officer and Assistant Secretary

            
	 	 
	 	 
	 	
              THE
                LENDER:

            
	 	 
	 	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION

            
	 	 
	 	 
	 	
              By:  /s/
                Matt Rickets

            
	 	
              Name:
                Matt
                Rickets

            
	 	
              Title:
                Vice
                President

            
	 	 
	 	
              Commitment
                Amount:

            
	 	 
	 	
              $40,000,000

            

    

    

    

    

    

    

    

    

    

    [Signatures
      Continued on Next Page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Signature
      Page to Fifth Amendment to Credit and Security Agreement

    with
      Five Star Quality Care, Inc.]

    

    
      	 	
              THE
                GUARANTORS:

            
	 	 
	 	
              ALLIANCE
                PHARMACY SERVICES, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-CA, INC.

            
	 	
              FIVE
                STAR QUALITY CARE-IA, INC.

            
	 	
              FIVE
                STAR QUALITY CARE-NE, INC.

            
	 	
              THE
                HEARTLANDS RETIREMENT COMMUNITY – ELLICOTT CITY I, INC.

            
	 	
              FIVE
                STAR QUALITY CARE-AZ, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-CA, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-COLORADO, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-CT, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-GA, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-IA, 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-FL, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-KS, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-MD, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-NC, LLC

            
	 	
              FIVE
                STAR QUALITY CARE-VA, LLC

            
	 	
              FS
                LAFAYETTE TENANT TRUST

            
	 	
              FS
                LEISURE PARK TENANT TRUST

            
	 	
              FS
                LEXINGTON TENANT TRUST

            
	 	
              FS
                TENANT POOL I TRUST

            
	 	
              FS
                TENANT POOL II TRUST

            
	 	
              FS
                TENANT POOL III TRUST

            
	 	
              FS
                TENANT POOL IV TRUST

            
	 	
              MORNINGSIDE
                OF BELMONT, LLC

            
	 	
              MORNINGSIDE
                OF GALLATIN, LLC

            
	 	
              MORNINGSIDE
                OF SPRINGFIELD, LLC

            
	 	
              FSQC
                FUNDING CO., LLC

            
	 	
              FIVE
                STAR QUALITY CARE-CA II, LLC

            
	 	
              FIVE
                STAR QUALITY CARE TRUST

            
	 	
              FS
                TENANT HOLDING COMPANY TRUST

            
	 	 
	 	
              By:  /s/
                Bruce J Mackey Jr.

            
	 	
                     
                Name: Bruce J. Mackey Jr.

            
	 	
                     
                Title: Treasurer, Chief Financial Officer and Assistant
                Secretary

            

    

    

    [Signatures
      Continued on Next Page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [Signature
      Page to Fifth Amendment to Credit and Security Agreement

    with
      Five Star Quality Care, Inc.]

    

    
      	 	
              THE
                GUARANTORS (cont.):

            
	 	 
	 	 
	 	
              MORNINGSIDE
                OF BELLGRADE, RICHMOND, LLC

            
	 	
              MORNINGSIDE
                OF CHARLOTTESVILLE, LLC

            
	 	
              MORNINGSIDE
                OF NEWPORT NEWS, LLC

            
	 	
              MORNINGSIDE
                OF SKIPWITH-RICHMOND, LLC

            
	 	 
	 	
              By:  LIFETRUST
                AMERICA, INC., its Member

            
	 	 
	 	 
	 	 
	 	
              By:  /s/
                Bruce J Mackey Jr.

            
	 	
                    
                Name: Bruce J. Mackey Jr.

            
	 	
                    
                Title: Treasurer, Chief Financial Officer and Assistant
                Secretary

            
	 	 
	 	 
	 	
              MORNINGSIDE
                OF ALABAMA, L.P.

            
	 	
              MORNINGSIDE
                OF ANDERSON, L.P.

            
	 	
              MORNINGSIDE
                OF ATHENS, LIMITED PARTNERSHIP

            
	 	
              MORNINGSIDE
                OF COLUMBUS, L.P.

            
	 	
              MORNINGSIDE
                OF DALTON, LIMITED PARTNERSHIP

            
	 	
              MORNINGSIDE
                OF DECATUR, L.P.

            
	 	
              MORNINGSIDE
                OF EVANS, LIMITED PARTNERSHIP

            
	 	
              MORNINGSIDE
                OF GREENWOOD, L.P.

            
	 	
              MORNINGSIDE
                OF KENTUCKY, LIMITED PARTNERSHIP

            
	 	 
	 	
              By:LIFETRUST
                AMERICA, INC., its General Partner

            
	 	 
	 	 
	 	
              By:  /s/
                Bruce J Mackey Jr.

            
	 	
                     
                Name: Bruce J. Mackey Jr.

            
	 	
                     
                Title: Treasurer, Chief Financial Officer and Assistant
                Secretary

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      D

    

    FORM
      OF
      AMENDED AND RESTATED NOTE

     

    

      
        	
                $40,000,000.00

              	
                June
                  ___, 2007

              

      

    

    FOR
      VALUE RECEIVED, the undersigned,
      FIVE STAR QUALITY CARE, INC., a corporation formed under the laws of the State
      of Maryland (the “Borrower”), hereby promises to pay to the order of Wachovia
      Bank, National Association (the “Lender”), One Wachovia Center, 301 South
      College Street, Charlotte, North Carolina 28288, or at such other address as
      may
      be specified in writing by the Lender to the Borrower, the principal sum of
      FORTY MILLION AND NO/100 DOLLARS ($40,000,000.00) (or such lesser amount as
      shall equal the aggregate unpaid principal amount of Loans under the Credit
      Agreement (as herein defined)), on the dates and in the principal amounts
      provided in the Credit Agreement, and to pay interest on the unpaid principal
      amount owing hereunder, at the rates and on the dates provided in the Credit
      Agreement.

    

    The
      date, amount of each Loan, and each
      payment made on account of the principal thereof, shall be recorded by the
      Lender on its books and, prior to any transfer of this Note, endorsed by the
      Lender on the schedule attached hereto or any continuation thereof, provided
      that the failure of the Lender to make any such recordation or endorsement
      shall
      not affect the obligations of the Borrower to make a payment when due of any
      amount owing under the Credit Agreement or hereunder in respect of the
      Loans.

    

    This
      Note is the Note referred to in
      the Credit and Security Agreement dated as of May 9, 2005 (as amended,
      restated, supplemented or otherwise modified from time to time, the “Credit
      Agreement”), by and among the Borrower, the Subsidiaries of the Borrower from
      time to time party to the Credit Agreement as Guarantors, and the
      Lender.  Capitalized terms used herein, and not otherwise defined
      herein, have their respective meanings given them in the Credit
      Agreement.

    

    The
      Credit Agreement provides for the
      acceleration of the maturity of this Note upon the occurrence of certain events
      and for prepayments of Loans upon the terms and conditions specified
      therein.

    

    Except
      as permitted by Section 13.5.(d)
      of the Credit Agreement, this Note may not be assigned by the Lender to any
      other Person.

    

    THIS
      NOTE SHALL BE GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE
      TO
      CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

    

    The
      Borrower hereby waives presentment
      for payment, demand, notice of demand, notice of non-payment, protest, notice
      of
      protest and all other similar notices.

    

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

    Time
      is
      of the essence for this Note.

    

    This
      Note
      amends and restates the terms of that certain Note dated May 9, 2005 in the
      original principal amount of $25,000,000, executed and delivered by
      Borrower and payable to the order of Lender.  THIS NOTE IS NOT
      INTENDED TO BE, AND SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE
      OBLIGATIONS OWING UNDER OR IN CONNECTION WITH SUCH OTHER NOTE.

     

     

     

     

    [Signature
      on Next Page]

    

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        D-2

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned has executed and delivered this Note under
      seal
      as of the date first written above.

    

    
      	 	
              FIVE
                STAR QUALITY CARE, INC.

            
	 	 
	 	 
	 	
              By:                                                             

            
	 	
                   Name:                                                   
                

            
	 	
                   Title:                                                     
                

            

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        D-3

        
          

        

      

      
         

      

    

    SCHEDULE
      OF LOANS

    

    

    This
      Note evidences Loans made under
      the within-described Credit Agreement to the Borrower, on the dates, in the
      principal amounts, bearing interest at the rates and maturing on the dates
      set
      forth below, subject to the payments and prepayments of principal set forth
      below:

     

    

    
      	
               

              Date
                of

              Loan

            	
              Principal
                

              Amount
                of

              Loan

            	
               

              Interest

              Rate

            	
              Amount

              Paid
                or

              Prepaid

            	
              Unpaid
                

              Principal
                

              Amount

            	
               

              Notation

              Made
                By

            

    

    

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

    D-4EXHIBIT 10.30

                          RIV ACQUISITION HOLDINGS INC.
                               650 Madison Avenue
                                   15th Floor
                            New York, New York 10022

                                    June 19, 2007

Syd Ghermezian
Triple Five Investco, LLC.
9510 West Sahara, Suite 200
Las Vegas, Nevada 89117

Dear Mr. Ghermezian:

Reference is made to the agreement dated March 21, 2007 between Riv Acquisition
Holdings Inc. ("RAH"), Triple Five Investco LLC and Dominion Financial LLC (the
"Agreement"). RAH hereby advises you that it is extending the Term (as defined
in the Agreement) pursuant to section 2 of the Agreement for thirty days
commencing on June 20, 2007. In consideration of such extension, RAH has already
wired the amount of $173,547.29 to the account previously designated by you.

Sincerely,

/s/ Paul Kanavos
---------------------
Paul Kanavos
President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]