Document:

Exhibit 10.29

 

PARTIAL TERMINATION OF AND SEVENTH AMENDMENT TO
 AMENDED AND RESTATED MASTER LEASE AGREEMENT
 (LEASE NO. 2)

 

THIS PARTIAL TERMINATION OF AND SEVENTH AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (LEASE NO. 2) (this “Amendment”) is made and entered into as of June 1, 2014, by and among each of the parties identified on the signature pages hereof as a landlord (collectively, “Landlord”) and each of the parties identified on the signature pages hereof as a tenant (jointly and severally, “Tenant”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant to the terms of that certain Amended and Restated Master Lease Agreement (Lease No. 2), 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. 2), dated as of November 1, 2009, that certain Partial Termination of and Second Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of August 1, 2010, that certain Third Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of June 20, 2011, that certain Fourth Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of July 22, 2011, that certain Fifth Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of August 31, 2012, and that certain Partial Termination of and Sixth Amendment to Amended and Restated Master Lease Agreement (Lease No. 2), dated as of September 19, 2013 (as so amended, “Amended Lease No. 2”), 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. 2), all as more particularly described in Amended Lease No. 2;

 

WHEREAS, SPTMNR Properties Trust (“SPTMNR”) and Five Star Quality Care-WI, LLC. have agreed to sell the Properties known as (a) Greentree Health & Rehabilitation Center, located at 70 Green Tree Road, Clintonville, Wisconsin (the “Greentree Property”)and (b) Pine Manor Healthcare Center, located at 1625 East Main Street, Village of Embarrass, Clintonville, Wisconsin (the “Pine Manor Property” and, together with the Greentree Property, collectively, the “Wisconsin Sale Properties”); and

 

WHEREAS, in connection with the sale of the Wisconsin Sale Properties, Landlord and Tenant wish to amend Amended Lease No. 2 to terminate Amended Lease No. 2 with respect to the Wisconsin Sale Properties effective as of the date hereof.

 

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. 2 is hereby amended as follows:

 

1.             Partial Termination of Lease.  Amended Lease No. 2 is terminated with respect to the Wisconsin Sale Properties and neither Landlord nor Tenant shall have any further rights or liabilities thereunder with respect to the Wisconsin Sale Properties from and after the date

 

 

hereof, except for those rights and liabilities which by their terms survive the termination of Amended Lease No. 2.

 

2.             Minimum Rent.  The defined term “Minimum Rent” set forth in Section 1.67 of Amended Lease No. 2 is deleted in its entirety and replaced with the following:

 

“Minimum Rent”  shall mean the sum of Sixty-Two Million Two Hundred Twenty-Six Thousand Two Hundred Ninety-Two and 26/100 Dollars ($62,226,292.26) per annum.

 

3.             Schedule 1.  Schedule 1 to Amended Lease No. 2 is deleted in its entirety and replaced with Schedule 1 attached hereto.

 

4.             Exhibit A.  Exhibit A to Amended Lease No. 2 is amended by deleting each of Exhibit A-46 and Exhibit A-47 attached thereto in their respective entireties and replacing each of them with “Intentionally Deleted.”

 

5.             Ratification.  As amended hereby, Amended Lease No. 2 is ratified and confirmed.

 

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

 

2

 

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

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
SPTIHS 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 GA LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH/LTA PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
O.F.C. CORPORATION
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH CHS PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
CCC OF KENTUCKY TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    

 

3

 

	
 
    	
LEISURE PARK VENTURE LIMITED   PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
CCC Leisure Park   Corporation,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
CCDE SENIOR LIVING LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
CCOP SENIOR LIVING LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
CCC PUEBLO NORTE TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
CCC RETIREMENT COMMUNITIES II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Crestline Ventures LLC,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
CCC INVESTMENTS I, L.L.C.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    

 

4

 

	
 
    	
CCC FINANCING I TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
CCC FINANCING LIMITED, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
CCC Retirement Trust,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
SNH SOMERFORD PROPERTIES TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David J. Hegarty
    
	
 
    	
 
    	
David J. Hegarty
    
	
 
    	
 
    	
President
    

 

5

 

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

 

6

 

SCHEDULE 1

 

PROPERTY-SPECIFIC INFORMATION

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
    (Calendar Year)
    	
 
    	
Base Gross Revenues
    (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
    Rate
    	
 
    
	
A-1
    	
 
    	
Ashton Gables in Riverchase 

2184 Parkway Lake Drive

Birmingham, AL 35244
    	
 
    	
2009
    	
 
    	
$
    	
2,121,622
    	
 
    	
08/01/2008
    	
 
    	
8
    	
%
    
	
A-2
    	
 
    	
Lakeview Estates

2634 Valleydale Road

Birmingham, AL 35244
    	
 
    	
2009
    	
 
    	
$
    	
2,692,868
    	
 
    	
08/01/2008
    	
 
    	
8
    	
%
    
	
A-3
    	
 
    	
Forum at Pueblo Norte

7090 East Mescal Street

Scottsdale, AZ 85254
    	
 
    	
2005
    	
 
    	
$
    	
11,470,312
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-4
    	
 
    	
La Salette Health and

Rehabilitation Center

537 East Fulton Street

Stockton, CA 95204
    	
 
    	
2005
    	
 
    	
$
    	
7,726,002
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-5
    	
 
    	
Thousand Oaks Health Care Center

93 West Avenida de Los Arboles

Thousand Oaks, CA 91360
    	
 
    	
2005
    	
 
    	
$
    	
8,087,430
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-6
    	
 
    	
Skyline Ridge Nursing &

Rehabilitation Center

515 Fairview Avenue

Canon City, CO 81212
    	
 
    	
2005
    	
 
    	
$
    	
4,104,100
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-7
    	
 
    	
Springs Village Care Center

110 West Van Buren Street

Colorado Springs, CO 80907
    	
 
    	
2005
    	
 
    	
$
    	
4,799,252
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-8
    	
 
    	
Willow Tree Care Center

2050 South Main Street

Delta, CO 81416
    	
 
    	
2005
    	
 
    	
$
    	
4,310,982
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-9
    	
 
    	
Cedars Healthcare Center

1599 Ingalls Street

Lakewood, CO 80214
    	
 
    	
2005
    	
 
    	
$
    	
6,964,007
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-10
    	
 
    	
Millcroft

255 Possum Park Road

Newark, DE 19711
    	
 
    	
2005
    	
 
    	
$
    	
11,410,121
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-11
    	
 
    	
Forwood Manor

1912 Marsh Road

Wilmington, DE 19810
    	
 
    	
2005
    	
 
    	
$
    	
13,446,434
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-12
    	
 
    	
Foulk Manor South

407 Foulk Road

Wilmington, DE 19803
    	
 
    	
2005
    	
 
    	
$
    	
4,430,251
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-13
    	
 
    	
Shipley Manor

2723 Shipley Road

Wilmington, DE 19810
    	
 
    	
2005
    	
 
    	
$
    	
9,333,057
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-14
    	
 
    	
Forum at Deer Creek

3001 Deer Creek

Country Club Blvd.

Deerfield Beach, FL 33442
    	
 
    	
2005
    	
 
    	
$
    	
12,323,581
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-15
    	
 
    	
Springwood Court

12780 Kenwood Lane

Fort Myers, FL 33907
    	
 
    	
2005
    	
 
    	
$
    	
2,577,612
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-16
    	
 
    	
Fountainview

111 Executive Center Drive

West Palm Beach, FL 33401
    	
 
    	
2005
    	
 
    	
$
    	
7,920,202
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
    (Calendar Year)
    	
 
    	
Base Gross Revenues
    (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
    Rate
    	
 
    
	
A-17
    	
 
    	
Morningside of Athens

1291 Cedar Shoals Drive

Athens, GA 30605
    	
 
    	
2006
    	
 
    	
$
    	
1,560,026
    	
 
    	
11/19/2004
    	
 
    	
9
    	
%
    
	
A-18
    	
 
    	
Marsh View Senior Living

7410 Skidaway Road

Savannah, GA 31406
    	
 
    	
2007
    	
 
    	
$
    	
2,108,378
    	
 
    	
11/01/2006
    	
 
    	
8.25
    	
%
    
	
A-19
    	
 
    	
Pacific Place

20937 Kane Avenue

Pacific Junction, IA 51561
    	
 
    	
2005
    	
 
    	
$
    	
848,447
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-20
    	
 
    	
West Bridge Care & Rehabilitation

1015 West Summit Street

Winterset, IA 50273
    	
 
    	
2005
    	
 
    	
$
    	
3,157,928
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-21
    	
 
    	
Meadowood Retirement Community

2455 Tamarack Trail

Bloomington, IN 47408
    	
 
    	
2009
    	
 
    	
$
    	
12,061,814
    	
 
    	
11/01/2008
    	
 
    	
8
    	
%
    
	
A-22
    	
 
    	
Woodhaven Care Center

510 West 7th Street

Ellinwood, KS 67526
    	
 
    	
2005
    	
 
    	
$
    	
2,704,674
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-23
    	
 
    	
Lafayette at Country Place

690 Mason Headley Road

Lexington, KY 40504
    	
 
    	
2005
    	
 
    	
$
    	
4,928,052
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-24
    	
 
    	
Lexington Country Place

700 Mason Headley Road

Lexington, KY 40504
    	
 
    	
2005
    	
 
    	
$
    	
8,893,947
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-25
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-26
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-27
    	
 
    	
HeartFields at Bowie

7600 Laurel Bowie Road

Bowie, MD 20715
    	
 
    	
2005
    	
 
    	
$
    	
2,436,102
    	
 
    	
10/25/2002
    	
 
    	
10
    	
%
    
	
A-28
    	
 
    	
HeartFields at Frederick

1820 Latham Drive

Frederick, MD 21701
    	
 
    	
2005
    	
 
    	
$
    	
2,173,971
    	
 
    	
10/25/2002
    	
 
    	
10
    	
%
    
	
A-29
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-30
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-31
    	
 
    	
Morys Haven

1112 15th Street

Columbus, NE 68601
    	
 
    	
2005
    	
 
    	
$
    	
2,440,714
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-32
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-33
    	
 
    	
Wedgewood Care Center

800 Stoeger Drive

Grand Island, NE 68803
    	
 
    	
2005
    	
 
    	
$
    	
4,000,565
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-34
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-35
    	
 
    	
Crestview Healthcare Center

1100 West First Street

Milford, NE 68405
    	
 
    	
2005
    	
 
    	
$
    	
2,284,407
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-36
    	
 
    	
Utica Community Care Center

1350 Centennial Avenue

Utica, NE 68456
    	
 
    	
2005
    	
 
    	
$
    	
1,950,325
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-37
    	
 
    	
Leisure Park

1400 Route 70

Lakewood, NJ 08701
    	
 
    	
2005
    	
 
    	
$
    	
14,273,446
    	
 
    	
01/07/2002
    	
 
    	
10
    	
%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
    (Calendar Year)
    	
 
    	
Base Gross Revenues
    (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
    Rate
    	
 
    
	
A-38
    	
 
    	
Franciscan Manor

71 Darlington Road

Patterson Township

Beaver Falls, PA 15010
    	
 
    	
2006
    	
 
    	
$
    	
4,151,818
    	
 
    	
10/31/2005
    	
 
    	
9
    	
%
    
	
A-39
    	
 
    	
Mount Vernon of Elizabeth

145 Broadlawn Drive

Elizabeth, PA 15037
    	
 
    	
2006
    	
 
    	
$
    	
2,332,574
    	
 
    	
10/31/2005
    	
 
    	
9
    	
%
    
	
A-40
    	
 
    	
Overlook Green

5250 Meadowgreen Drive

Whitehall, PA 15236
    	
 
    	
2006
    	
 
    	
$
    	
3,878,300
    	
 
    	
10/31/2005
    	
 
    	
9
    	
%
    
	
A-41
    	
 
    	
Myrtle Beach Manor

9547 Highway 17 North

Myrtle Beach, SC 29572
    	
 
    	
2005
    	
 
    	
$
    	
6,138,714
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-42
    	
 
    	
Morningside of Anderson

1304 McLees Road

Anderson, SC 29621
    	
 
    	
2006
    	
 
    	
$
    	
1,381,775
    	
 
    	
11/19/2004
    	
 
    	
9
    	
%
    
	
A-43
    	
 
    	
Heritage Place at Boerne

120 Crosspoint Drive

Boerne, TX 78006
    	
 
    	
2009
    	
 
    	
$
    	
1,469,683
    	
 
    	
02/07/2008
    	
 
    	
8
    	
%
    
	
A-44
    	
 
    	
Forum at Park Lane

7831 Park Lane

Dallas, TX 75225
    	
 
    	
2005
    	
 
    	
$
    	
13,620,931
    	
 
    	
01/11/2002
    	
 
    	
10
    	
%
    
	
A-45
    	
 
    	
Heritage Place at Fredericksburg

96 Frederick Road

Fredericksburg, TX 78624
    	
 
    	
2009
    	
 
    	
$
    	
1,386,771
    	
 
    	
02/07/2008
    	
 
    	
8
    	
%
    
	
A-46
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-47
    	
 
    	
Intentionally deleted.
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    
	
A-48
    	
 
    	
ManorPointe - Oak Creek   Independent Senior Apartments and Meadowmere - Mitchell Manor - Oak Creek

700 East Stonegate Drive and

701 East Puetz Road

Oak Creek, WI 53154
    	
 
    	
2009
    	
 
    	
$
    	
4,189,440
    	
 
    	
01/04/2008
    	
 
    	
8
    	
%
    
	
A-49
    	
 
    	
River Hills West Healthcare Center

321 Riverside Drive

Pewaukee, WI 53072
    	
 
    	
2005
    	
 
    	
$
    	
9,211,765
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-50
    	
 
    	
The Virginia   Health & Rehabilitation Center

1451 Cleveland Avenue

Waukesha, WI 53186
    	
 
    	
2005
    	
 
    	
$
    	
6,128,045
    	
 
    	
12/31/2001
    	
 
    	
10
    	
%
    
	
A-51
    	
 
    	
Reserve at Greenbriar

1005 Elysian Place

Chesapeake, Virginia
    	
 
    	
2012
    	
 
    	
$
    	
2,508,269
    	
 
    	
06/20/2011
    	
 
    	
7.5
    	
%
    
	
A-52
    	
 
    	
Palms at St. Lucie West

501 N.W. Cashmere Boulevard

Port St. Lucie, Florida
    	
 
    	
2012
    	
 
    	
$
    	
2,903,642
    	
 
    	
07/22/2011
    	
 
    	
7.5
    	
%
    
	
A-53
    	
 
    	
Forum at Desert Harbor

13840 North Desert Harbor Drive

Peoria, AZ 85381
    	
 
    	
2005
    	
 
    	
$
    	
9,830,918
    	
 
    	
01/11/2002
    	
 
    	
10.0
    	
%
    
	
A-54
    	
 
    	
Forum at Tucson

2500 North Rosemont Blvd.

Tucson, AZ 85712
    	
 
    	
2005
    	
 
    	
$
    	
13,258,998
    	
 
    	
01/11/2002
    	
 
    	
10.0
    	
%
    
	
A-55
    	
 
    	
Park Summit at Coral Springs

8500 Royal Palm Blvd.

Coral Springs, FL 33065
    	
 
    	
2005
    	
 
    	
$
    	
11,229,677
    	
 
    	
01/11/2002
    	
 
    	
10.0
    	
%
    

 

 

	
Exhibit
    	
 
    	
Property Address
    	
 
    	
Base Gross Revenues
    (Calendar Year)
    	
 
    	
Base Gross Revenues
    (Dollar Amount)
    	
 
    	
Commencement
   Date
    	
 
    	
Interest
    Rate
    	
 
    
	
A-56
    	
 
    	
Gables at Winchester

299 Cambridge Street

Winchester, MA 01890
    	
 
    	
2005
    	
 
    	
$
    	
6,937,852
    	
 
    	
01/11/2002
    	
 
    	
10.0
    	
%
    
	
A-57
    	
 
    	
Forum at Memorial Woods

777 North Post Oak Road

Houston, TX 77024
    	
 
    	
2005
    	
 
    	
$
    	
19,734,400
    	
 
    	
01/11/2002
    	
 
    	
10.0
    	
%Exhibit 10.49

 

POOLING AGREEMENT No. 3

 

THIS POOLING AGREEMENT No. 3 (this “Agreement”) is made as of November 1, 2013, by and among FVE Managers, Inc. (“Manager”) and the parties listed on Schedule A (each a “TRS” and collectively, “TRSes”).

 

RECITALS:

 

Each TRS has entered into a Management Agreement with Manager (each a “Management Agreement” and collectively, the “Management Agreements”) with respect to the real estate and personal property described in Schedule B opposite such TRS’s name which is licensed as an assisted living facility and/or a skilled nursing facility (each a “Facility” and collectively, the “Facilities”), which Management Agreements are listed on Schedule C.

 

The parties desire that working capital of each of the Facilities and all revenues from operation of each of the Facilities be pooled for purposes of paying operating expenses of the Facilities, fees and other amounts due to Manager and TRSes.

 

NOW, THEREFORE, the parties agree as follows:

 

ARTICLE I
 DEFINED TERMS

 

1.01.                     Definitions.  Capitalized terms used, but not otherwise defined in this Agreement shall have the meanings given to such terms in the Management Agreements. The following capitalized terms as used in this Agreement shall have the meanings set forth below:

 

“Additional Facility” is defined in Section 7.01.

 

“Additional Management Agreement” is defined in Section 7.01.

 

“Additional TRS” is defined in Section 7.01.

 

“Aggregate Annual Statement” means the Aggregate Monthly Statement for the month of December in each year.

 

“Aggregate Base Fee” means an amount equal to 3% of the Aggregate Gross Revenues.

 

“Aggregate Facility Expenses” means the sum of Facility Expenses of the Facilities.

 

“Aggregate Gross Revenues” means the sum of Gross Revenues of the Facilities.

 

“Aggregate Incentive Fee” means an amount that is equal to thirty-five percent (35%) of Aggregate Net Operating Income remaining after payment of the Aggregate TRS Priority Return.

 

“Aggregate Invested Capital” means the sum of the Invested Capital for each of the Facilities, including each Additional Facility.

 

 

“Aggregate Monthly Statement” is defined in Section 4.01(a).

 

“Aggregate Net Operating Income” means an amount equal to Aggregate Gross Revenues less Aggregate Facility Expenses.

 

“Aggregate TRS Priority Return” means an annual amount equal to eight percent of Aggregate Invested Capital.

 

“Aggregate TRS Residual Payment” means an amount equal to 65% of the Aggregate Net Operating Income after payment of the Aggregate TRS Priority Return.

 

“Agreement” is defined in the Preamble.

 

“Facility” and “Facilities” is defined in the Recitals.

 

“Management Agreement” and “Management Agreements” is defined in the Recitals.

 

“Manager” is defined in the Preamble.

 

“Manager Shortfall Advance” is defined in Section 5.01.

 

“Non-Economic Facilities” is defined in Section 5.02.

 

“Priority Return Shortfall” is defined in Section 5.01.

 

“TRS” is defined in the Preamble.

 

ARTICLE II
 GENERAL

 

The parties agree that so long as a Facility is subject to this Agreement, all Working Capital and all Gross Revenues of such Facility shall be pooled pursuant to this Agreement and disbursed to pay all Aggregate Facility Expenses, fees and other amounts due Manager and TRSes (not including amounts due pursuant to Section 15.05 of the Management Agreements) with respect to the Facilities and that the corresponding provisions of each Management Agreement shall be superseded as provided in Section 3.03.  The parties further agree that if Manager gives a notice of non-renewal of the Term with respect to any Facility, it shall be deemed to be a notice of non-renewal of the Term with respect to all the Facilities.

 

ARTICLE III
 PRIORITIES FOR
 DISTRIBUTION OF AGGREGATE GROSS REVENUES

 

3.01.                     Priorities for Distribution of Aggregate Gross Revenues.  Aggregate Gross Revenues shall be distributed in the following order of priority:

 

(1)                                 First, to pay Aggregate Facility Expenses (which shall not include the Aggregate Base Fee).

 

2

 

(2)                                 Second, to Manager to pay the Aggregate Base Fee and any interest that may have accrued pursuant to Section 3.02.

 

(3)                                 Third, to TRS in an amount equal to the Aggregate TRS Priority Return and any interest that may have accrued pursuant to Section 3.02.

 

(4)                                 Fourth, to Manager to reimburse it for payment of any Manager Shortfall Advance, plus applicable interest calculated at the Interest Rate.

 

(5)                                 Fifth, to Manager, in an amount equal to the Aggregate Incentive Fee.

 

(6)                                 Sixth, to TRS, in an amount equal to the Aggregate TRS Residual Payment.

 

3.02.                     Timing of Payments.  Payment of the Aggregate Facility Expenses, excluding the Aggregate Base Fee, shall be made in the ordinary course of business.  The Aggregate Base Fee and accrued interest, if any, shall be paid on the first Business Day of each calendar month, in advance, based upon Manager’s then estimate of the prior month’s Aggregate Gross Revenues.  The Aggregate TRS Priority Return and accrued interest, if any, shall be paid on the first Business Day of each calendar month, in advance in approximately equal monthly installments, based upon Aggregate Invested Capital most recently reported to Manager by TRS. The Aggregate Base Fee and Aggregate TRS’s Priority Return shall be subject to adjustment by increasing or decreasing the payment due in the following month based upon Aggregate Gross Revenues reflected in the Aggregate Monthly Financial Statements and increases or decreases in Aggregate Invested Capital reported to Manager by TRS, as the case may be.  If any installment of the Aggregate Base Fee or the Aggregate TRS Priority Return is not paid when due, it shall accrue and bear interest at the Interest Rate. The Aggregate Incentive Fee and Aggregate TRS Residual Payment shall be paid on the last Business Day of the calendar month following the month to which such Aggregate Incentive Fee and Aggregate TRS Residual Payment relate, in arrears, and shall be based upon the Aggregate Monthly Statements.  Additional adjustments to all payments will be made on an annual basis based upon the Aggregate Monthly Statements for the full calendar year and any audits conducted pursuant to Section 6.03 of the Management Agreements.  The Aggregate TRS Priority Return and Aggregate TRS Residual Payment shall be allocated among TRSes as the TRSes shall determine in their sole discretion and Manager shall have no responsibility or liability in connection therewith.

 

3.03.                     Relationship with Management Agreements.  For as long as this Agreement is in effect with respect to a Facility, the provisions of Section 3.01 and 3.02 shall supersede Sections 5.01 and 5.02 of the Management Agreement then in effect with the applicable Facility.

 

ARTICLE IV
 FINANCIAL STATEMENTS

 

Manager shall prepare and deliver the following financial statements to the TRSes:

 

(a)                            not later than ten Business Days after the end of each calendar month, a consolidated balance sheet and related statement of income and expense of all of the Facilities for such calendar month and for the then current calendar year to date, certified

 

3

 

by Manager’s Controller on a monthly basis and by Manager’s Chief Financial Officer on a quarterly basis as being true and correct to the best of his/her knowledge (“Aggregate Monthly Statement”).

 

(b)                            Manager shall also prepare and deliver such other statements or reports as any TRS may, from time to time, reasonably request.

 

The financial statements delivered pursuant to this Article IV are in addition to any financial statements required to be prepared and delivered pursuant to the Management Agreements.

 

ARTICLE V
 SHORTFALL; NON-ECONOMIC FACILITIES

 

5.01.                     Shortfall.  If in each of three consecutive calendar years the Aggregate TRS Priority Return (together with any accrued interest) has not been paid in full (a “Priority Return Shortfall”), by notice given after December 31 of the fifth calendar year following the year in which the last Facility or Additional Facility became subject to this Agreement, within sixty (60) days after receipt of the Aggregate Annual Statement for such third year, the TRSes may terminate all, but not less than all, of the Management Agreements.  Prior to exercising the right to terminate, TRSes shall give Manager notice and if within ten (10) days thereafter, Manager funds the Priority Return Shortfall (a “Manager Shortfall Advance”), TRSes shall not exercise the right to terminate, provided Manger may not exercise its right to fund the Priority Return Shortfall more frequently than once every four (4) years.  Manager may recover any amounts paid by it as a Manager Shortfall Advance as provided in Section 3.01, provided that amounts not recovered during the four (4) calendar years following the year in which payment of a Manager Shortfall Advance was made shall be deemed waived and shall not be payable in any subsequent year.

 

5.02.                     Non-Economic Facilities.  If the Gross Revenues of any Facility are insufficient to pay all Facility Expenses and the Base Fee of such Facility in full during each of two (2) consecutive calendar years, Manager shall, upon thirty (30) days notice to the relevant TRS, be entitled to designate such Facility a “Non-Economic Facility.”  Notwithstanding the foregoing, Manager shall not be entitled without the Owner’s consent to designate Facilities for which the Invested Capital in the aggregate would exceed twenty percent (20%) of Aggregate Invested Capital and further provided for purposes of this Section 5.02 only, Aggregate Invested Capital shall be determined without giving effect to the termination of the Management Agreement of a Non-Economic Facility and without reduction for proceeds from the sale, or deemed sale, of any Non-Economic Facility.  Manager may request an increase in the foregoing twenty percent (20%) threshold at any time, which Owner may accept or reject in its sole discretion.

 

Manager shall market a Facility designated as a Non-Economic Facility for sale and any costs incurred by the Manager in connection with such marketing activities and the sale of such Facility shall be paid out of the net proceeds of such sale.  The relevant TRS and Owner shall cooperate with Manager in compiling any relevant information, preparing marketing materials and otherwise in connection with the sale of a Non-Economic Facility.

 

4

 

5.03.                     Sale Process.  If a Non-Economic Facility is marketed for sale in accordance with Section 5.02 and Manager receives an offer therefor which it wishes to accept on behalf of the TRS and Owner, Manager shall give the relevant TRS prompt notice thereof, which notice shall include a copy of the offer and any other information reasonably requested by such TRS.  If the relevant TRS, on behalf of the relevant Owner, shall fail to accept or reject such offer within seven (7) Business Days after receipt of such notice and other information from Manager, such offer shall be deemed to be accepted.  If the offer is rejected by the relevant TRS on behalf of the relevant Owner and, if the Manager elects to continue marketing the Facility by providing written notice to the relevant TRS within seven (7) days of such rejection and the Manager does not obtain another offer within ninety (90) days that is accepted by the relevant TRS, the Non-Economic Facility shall be deemed to have been sold to the relevant TRS on the date, at the price and on the other terms contained in the offer.  If a Non-Economic Facility is sold to a third party or deemed to have been sold to the relevant Owner pursuant to such offer, effective as of the date of sale or deemed sale: (i) the Management Agreement shall terminate with respect to such Non-Economic Facility; (ii) the Aggregate Invested Capital shall be reduced by an amount equal to the net proceeds of sale after reduction for the costs and expenses of the relevant TRS, relevant Owner and/or Manager (or, in the case of a deemed sale, the net proceeds of sale determined by reference to such offer, after reduction for any amounts actually expended and any amounts which would reasonably have been expected to have been expended if the sale had been consummated, by the relevant TRS, relevant Owner and/or Manager).  If the reduction of Aggregate Invested Capital is less than the Invested Capital of the Non-Economic Facility sold or deemed sold, the difference shall be proportionately reallocated to the Invested Capital of the remaining Facilities.

 

ARTICLE VI
 ACCOUNTS

 

All Working Capital and all Gross Revenues of each of the Facilities may be pooled and deposited in one or more bank accounts in the name(s) of the TRSes designated by Manager, which accounts may, except as required by any Mortgage and related loan documentation or applicable law, be commingled accounts containing other funds owned by or managed by Manager.  Manager shall be authorized to access the accounts without the approval of TRSes, subject to any limitation on the maximum amount of any check, if any, established between Manager and TRSes as part of the Annual Operating Budgets.  One or more TRSes shall be a signatory on all accounts maintained with respect to the Facility, and TRSes shall have the right to require that one or more TRS’s signature be required on all checks/withdrawals after the occurrence of an Event of Default by Manager under this Agreement.  The TRSes shall provide such instructions to the applicable bank(s) as are necessary to permit Manager to implement the Manager’s rights and obligations under this Agreement.  The failure of any TRS to provide such instructions shall relieve Manager of its obligations hereunder until such time as such failure is cured.

 

ARTICLE VII
 ADDITION AND REMOVAL OF FACILITIES

 

7.01.                     Addition of Facilities.  At any time and from time to time, Manager and any TRS or any Affiliate of TRS (an “Additional TRS”) which enters into a management agreement with

 

5

 

Manager (an “Additional Management Agreement”) for the operation of an additional assisted living facility or skilled nursing facility (an “Additional Facility”), the Additional TRS may become a party to this Agreement by signing an accession agreement confirming the applicability of this Agreement to such Additional Facility.  If an Additional Facility is made subject to this Agreement other than on the first day of a calendar month, the parties shall include such prorated amounts of the Gross Revenues and Facility Expenses (and other amounts as may be necessary) applicable to the Additional Facility for such calendar month, as mutually agreed in their reasonable judgment, in the calculation of Aggregate Gross Revenues and Aggregate Facility Expenses (and other amounts as may be necessary) for the calendar month in which the Additional Facility became subject to this Agreement and shall make any other prorations, adjustments, allocations and changes required.  Additionally, any amounts held as Working Capital or for Capital Replacements at the Additional Facility, if any, shall be held by Manager under this Agreement.

 

7.02.                     Removal of Facilities.  From and after the date of termination of any Management Agreement, the Facility managed thereunder shall no longer be subject to this Agreement.  If the termination occurs on a day other than the last day of a calendar month, the parties shall exclude such prorated amounts of the Gross Revenues and Facility Expenses (and other amounts as may be necessary) applicable to such Facility for such calendar month, as mutually agreed in their reasonable judgment, in the calculation of Aggregate Gross Revenues and Aggregate Facility Expenses (and other amounts as may be necessary) for the calendar month in which the termination occurred.  Additionally, the relevant TRS and Manager, both acting reasonably, shall mutually agree to the portion of the Working Capital and Aggregate Gross Revenues and any amounts being held by Manager for Capital Replacements allocable to the Facility being removed from this Agreement and the amount of the Working Capital, Aggregate Gross Revenues and amounts being held by Manager for Capital Replacements, if any, so allocated shall be remitted to the relevant TRS and the relevant TRS and Manager shall make any other prorations, adjustments, allocations and changes required.

 

ARTICLE VIII
 TERM AND TERMINATION

 

8.01.                     Term.  This Agreement shall continue and remain in effect indefinitely unless terminated pursuant to Section 8.02.

 

8.02.                     Termination.  This Agreement may be terminated as follows:

 

(a)                            By the mutual consent of Manager and TRSes which are parties to the Agreement.

 

(b)                            Automatically, if all Management Agreements terminate or expire for any reason.

 

(c)                             By Manager, if any or all TRSes do not cure a material breach of this Agreement by any TRS or Owner within thirty (30) days of written notice of such breach from Manager and if such breach is not cured, it shall be an Event of Default under the Management Agreements.

 

6

 

(d)                            By TRSes, if Manager does not cure a material breach of this Agreement by Manager within thirty (30) days of written notice of such breach from any TRS.

 

8.03.                     Effect of Termination.  Upon the termination of this Agreement, except as otherwise provided in Section 12.02(i) or 14.04 of the Management Agreements, Manager shall be compensated for its services only through the date of termination and all amounts remaining in any accounts maintained by Manager pursuant to Article VI, after payment of such amounts as may be due to Manager hereunder, shall be distributed to TRSes.  Notwithstanding the foregoing, upon the termination of any single Management Agreement, pooled funds shall be allocated as described in Section 7.02.

 

8.04.                     Survival.  The following Sections of this Agreement shall survive the termination of this Agreement:  8.03 and Article IX.

 

ARTICLE IX
 MISCELLANEOUS PROVISIONS

 

9.01.                     Notices.  All notices, demands, consents, approvals, and requests given by any party to another party hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, upon confirmation of receipt when transmitted by facsimile transmission, or on the next business day if transmitted by nationally recognized overnight courier, to the parties at the following addresses:

 

To TRS:

 

c/o SNH SE Tenant TRS, Inc.

Two Newton Place

225 Washington Street

Newton, Massachusetts 02458

Attn:  David J. Hegarty

Telephone: (617) 796-8104

Facsimile: (617) 796-8349

 

To Manager:

 

FVE Managers, Inc.

400 Centre Street

Newton, Massachusetts 02458

Attn:  Bruce J. Mackey

Telephone: (617) 796-8214

Facsimile: (617) 796-8243

 

9.02.                     Applicable Law; Arbitration.  This Agreement shall be interpreted, construed, applied and enforced in accordance with the laws of the Commonwealth of Massachusetts, with regard to its “choice of law” rules.  Any “Dispute” (as such term is defined in the Management Agreements) under this Agreement shall be resolved through final and binding arbitration

 

7

 

conducted in accordance with the procedures and with the effect of, arbitration as provided for in the Management Agreements.

 

9.03.                     Severability.  If any term or provision of this Agreement or the application thereof in any circumstance is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

9.04.                     Gender and Number.  Whenever the context of this Agreement requires, the gender of all words herein shall include the masculine, feminine, and neuter, and the number of all words herein shall include the singular and plural.

 

9.05.                     Headings and Interpretation.  The descriptive headings in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.  References to “Section” in this Agreement shall be a reference to a Section of this Agreement unless otherwise indicated.  Whenever the words “include”, “includes” or “including” are used in this Agreement they shall be deemed to be followed by “without limitation.”  The words “hereof,” “herein,” “hereby,” and “hereunder, when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision unless otherwise indicated.  The word “or” shall not be exclusive.  This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting.

 

9.06.                     Confidentiality of Information.  Any information exchanged between the Manager and each TRS pursuant to the terms and conditions of this Agreement shall be subject to Sections 17.06 or 17.07 of the Management Agreement and the Business Associate Agreement entered into between the Manager and each TRS.

 

9.07.                     Assignment.  Neither Manager nor any TRS may assign its rights and obligations under this Agreement to any other Person without the prior written consent of the other parties.

 

9.08.                     Entire Agreement; Construction; Amendment.  With respect to the subject matter hereof, this Agreement supersedes all previous contracts and understandings between the parties and constitutes the entire Agreement between the parties with respect to the subject matter hereof.  Accordingly, in the event of any conflict between the provisions of this Agreement and the Management Agreements, the provisions of this Agreement shall control, and the provisions of the Management Agreements are deemed amended and modified, in each case as required to give effect to the intent of the parties in this Agreement.  All other terms and conditions of the Management Agreements shall remain in full force and effect; provided that, to the extent that compliance with this Agreement shall cause a default, breach or other violation of the Management Agreement by one party, the other party waives any right of termination, indemnity, arbitration or otherwise under the Management Agreement related to that specific default, breach or other violations, to the extent caused by compliance with this Agreement.  This Agreement may not be modified, altered or amended in any manner except by an amendment in writing, duly executed by the parties hereto.

 

8

 

9.09.                     Third Party Beneficiaries.  The terms and conditions of this Agreement shall inure to the benefit of, and be binding upon, the respective successors, heirs, legal representatives or permitted assigns of each of the parties hereto and except for Owners, which are intended third party beneficiaries, no Person other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement.

 

[Signatures begin on the following page.]

 

9

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement with the intention of creating an instrument under seal.

 

	
 
    	
FVE   Managers, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bruce J. Mackey Jr.
    
	
 
    	
 
    	
Bruce   J. Mackey Jr.
    
	
 
    	
 
    	
President
    
	
 
    	
 
    
	
 
    	
SNH   SE Tenant TRS, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard A. Doyle
    
	
 
    	
 
    	
Richard   A. Doyle
    
	
 
    	
 
    	
President
    

 

10

 

Schedule A

 

TRSes

 

SNH SE Tenant TRS, Inc.

 

 

Schedule B

 

Facilities

 

Willow Pointe, Verona, WI (SNH SE Tenant TRS Inc.)

 

 

Schedule C

 

Management Agreements

 

Management Agreement dated November 1, 2013 between FVE Managers, Inc. and SNH SE Tenant TRS, Inc. (Willow Pointe)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]