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Exhibit 10.1  

 
 

SEVENTH AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT    
    

        THIS SEVENTH AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT (this
"Amendment") is made and entered into as of October 1, 2006 by and among each of the parties identified on the signature page hereof as landlord,
as landlord (collectively, "Landlord"), and FIVE STAR QUALITY CARE TRUST, a Maryland business trust, as
tenant ("Tenant"). 

 
 

WITNESSETH:    
    

        WHEREAS, pursuant to the terms of that certain Second Amended and Restated Lease Agreement, dated as of
November 19, 2004, as amended by that certain First Amendment of Lease, dated as of May 17, 2005, that certain Second Amendment to Second Amended and Restated Lease Agreement, dated as
of June 3, 2005, that certain Third Amendment to Second Amended and Restated Lease Agreement, dated as of October 31, 2005, that certain Third Amendment to Second Amended and Restated
Lease Agreement, dated as of December 30, 2005, that certain Letter Agreement, dated as of March 13, 2006, that certain Fifth Amendment to Second Amended and Restated Lease Agreement,
dated as of September 1, 2006 and that certain Sixth Amendment to Second Amended and Restated Lease Agreement, dated as of September 30, 2006 (as so amended, the
"Consolidated Lease"), 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 the Consolidated Lease), all as more particularly described in the Consolidated Lease; and 

        WHEREAS, on or about the date hereof, SNH/LTA Properties Trust has acquired certain real property and related improvements known as
Hermitage Gardens at Oxford and located at 1488 Belk Boulevard, Oxford, Mississippi, as more particularly described on Exhibit A-93
attached hereto (the "Oxford Property"); and 

        WHEREAS, on or about the date hereof, SNH/LTA Properties Trust has acquired certain real property and related improvements known as
Hermitage Gardens at Southaven and located at 108 Clarington Drive, Southaven, Mississippi, as more particularly described on  Exhibit A-94 attached
hereto (the "Southaven Property", and together with the Oxford Property, collectively, the "Hermitage
Properties"); and 

        WHEREAS, SNH/LTA Properties Trust, the other entities comprising Landlord and Tenant wish to amend the Consolidated Lease to include the
Hermitage Properties; 

        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 as follows: 

        1.     Definition of Base Year. The definition of the term "Base Year" set forth in Section 1.9 of the Consolidated Lease
is hereby deleted in its entirety and replaced with the following: 

"Base Year" shall mean (i) with respect to the Existing Properties, the 2005 calendar year, (ii) with respect to the Additional
Properties, the 2006 calendar year, (iii) with respect to the Hermitage Properties and the Holiday Properties other than the Buena Vida Property, the 2007 calendar year, and (iv) with
respect to the Buena Vida Property, the 2008 calendar year. 

        2.     Definition of Disbursement Rate. The definition of the term "Disbursement Rate" set forth in Section 1.23 of the
Consolidated Lease is hereby deleted in its entirety and replaced with the following: 

"Disbursement Rate" shall mean (a) with respect to all of the Properties other than the Hermitage Properties and the Holiday Properties, an
annual rate of interest, as of the date of determination, equal to the greater of (i) the Interest Rate, and (ii) the per annum rate for ten (10) year U.S. Treasury Obligations as
published in The Wall Street Journal plus four hundred (400) basis points, and (b) with respect to the Hermitage Properties and the
Holiday Properties, an annual rate of 

 

interest,
as of the date of determination, equal to the greater of (i) the Interest Rate, and (ii) the per annum rate for ten (10) year U.S. Treasury Obligations as published in  The Wall Street Journal plus three hundred twenty-five (325) basis points; provided,
however, that in no event shall the Disbursement Rate exceed eleven and one-half percent (11.5%). 

        3.     Definition of Interest Rate. The definition of the term "Interest Rate" set forth in Section 1.54 of the
Consolidated Lease is hereby deleted in its entirety and replaced with the following: 

"Interest Rate" shall mean, (i) with respect to the Existing Properties, ten percent (10%) per annum, (ii) with respect to the Additional
Properties, nine percent (9%) per annum, and (iii) with respect to the Hermitage Properties and the Holiday Properties, eight and one quarter percent (8.25%) per annum. 

        4.     Definition of Minimum Rent. The definition of the term "Minimum Rent" set forth in Section 1.69 of the Consolidated
Lease is hereby deleted in its entirety and replaced with the following: 

"Minimum Rent" shall mean the sum of Thirty-Eight Million Nine Hundred Seventeen Thousand Seven Hundred Fifty and 00/100 Dollars ($38,917,750.00) per
annum. 

        5.     Definition of Hermitage Properties. The following new definition for the term "Hermitage Properties" is hereby added to
the Consolidated Lease as a new Section 1.103: 

"Hermitage Properties" shall mean the Properties located on the Land described in Exhibits
A-93 and A-94 attached hereto. 

        6.     Leased Property. Section 2.1 of the Consolidated Lease is hereby amended by deleting subsection (a) in its
entirety and replacing it with the following: 

	(a)
	those
certain tracts, pieces and parcels of land as more particularly described in Exhibits A-1 through A-94 attached hereto and made a part hereof (the
"Land"). 

        7.     Permitted Use. Section 4.1.1 of the Consolidated Lease is hereby amended by deleting subsection (b) in its
entirety and replacing it with the following: 

(b)
In the event that, in the reasonable determination of Tenant, it shall no longer be economically practical to operate any Property as currently operated, Tenant shall give Landlord Notice thereof,
which Notice shall set forth in reasonable detail the reasons therefor. Thereafter, Landlord and Tenant shall negotiate in good faith to agree on an alternative use for such Property, appropriate
adjustments to the Additional Rent and other related matters; provided, however, in no event shall the Minimum Rent be reduced or abated as a result
thereof. If Landlord and Tenant fail to agree on an alternative use for such Property within sixty (60) days after commencing negotiations as aforesaid, Tenant may market such Property for sale
to a third party. If Tenant receives a bona fide offer (an "Offer") to purchase such Property from a Person having the financial capacity to implement
the terms of such Offer, Tenant shall give Landlord Notice thereof, which Notice shall include a copy of the Offer executed by such third party. In the event that Landlord shall fail to accept or
reject such Offer within thirty (30) days after receipt of such Notice, such Offer shall be deemed to be rejected by Landlord. If Landlord shall sell the Property pursuant to such Offer, then,
effective as of the date of such sale, this Agreement shall terminate with respect to such Property, and the Minimum Rent shall be reduced by an amount equal to (x) ten percent (10%) of the net
proceeds of sale received by Landlord in the case of an Existing Property, (y) nine percent (9%) of the net proceeds of sale received by Landlord in the case of an Additional Property, and
(z) eight and one quarter percent (8.25%) of the net proceeds of sale received by Landlord in the case of a Hermitage Property or a Holiday Property. If Landlord shall reject (or be deemed to
have rejected) such Offer, then, effective as of the proposed date of such sale, this Agreement shall terminate with respect to such Property, and the Minimum Rent shall be reduced by an amount equal
(i) in the case of an Offer for an Existing Property, to ten percent (10%) of the 

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projected
net proceeds determined by reference to such Offer, (ii) in the case of an Additional Property, nine percent (9%) of the projected net proceeds determined by reference to such Offer,
and (iii) in the case of a Hermitage Property or a Holiday Property, eight and one quarter percent (8.25%) of the net proceeds determined by reference to such Offer. 

        8.     Exhibit A. Exhibit A to the Consolidated Lease is hereby amended by adding Exhibits
A-93 and A-94 attached hereto following Exhibit A-92 to the Consolidated Lease. 

        9.     Ratification. As amended hereby, the Consolidated Lease is hereby ratified and confirmed. 

        IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed, as a sealed instrument, as of the date first set
forth above. 

	 	 	LANDLORD:
	

 	
 	

ELLICOTT CITY LAND I LLC, ELLICOTT CITY LAND II LLC, HRES2 PROPERTIES TRUST, SNH CHS PROPERTIES TRUST, SPTIHS PROPERTIES TRUST, SPT-MICHIGAN TRUST, SPTMNR PROPERTIES TRUST, SNH/LTA PROPERTIES TRUST and SNH/LTA PROPERTIES GA LLC
	

 	
 	

By:	

/s/  JOHN R. HOADLEY      
 John R. Hoadley

Treasurer of each of the foregoing entities
	

 	
 	
TENANT:
	

 	
 	

FIVE STAR QUALITY CARE TRUST
	

 	
 	

By:	

/s/  BRUCE J. MACKEY JR.      
 Bruce J. Mackey Jr.

Treasurer, Chief Financial Officer and Assistant Secretary

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        The
following exhibits have been omitted and will be supplementally furnished to the Securities and Exchange Commission upon request: 

EXHIBIT
A-93—OXFORD PROPERTY 

EXHIBIT
A-94—SOUTHAVEN PROPERTY 

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SEVENTH AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT

WITNESSETHExhibit 10.2  

FOURTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT  

        This FOURTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this "Amendment") dated as of October 11, 2006 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 inserting the following definitions in Section 1.1 in appropriate alphabetical order as follows: 

        "Convertible Senior Notes" means those certain convertible senior notes issued by the Borrower pursuant to that certain Indenture to be
dated on or about October 18, 2006 by and among the Borrower, the Convertible Senior Note Guarantors and U.S. Bank National Association, as trustee. 

        "Convertible Senior Note Guarantors" means, initially, 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 and FS Tenant Pool IV Trust, and any other Subsidiary of the Borrower that guaranties the Convertible Senior Notes and that is
also a Guarantor. 

        (b)   Section 10.1.(a)
of the Credit Agreement is amended and restated in its entirety as follows: 

        (a)   Maximum Leverage Ratio. The ratio of (i) Indebtedness (other than Permitted LC Debt) of the Borrower and its
Subsidiaries to (ii) EBITDA for the four consecutive fiscal quarters most recently ended prior to the date of determination, to exceed 7.0 to 1.0 at any time. 

        (c)   Section 10.3.(a)
of the Credit Agreement is amended and restated in its entirety as follows: 

        (a)   (i) Indebtedness
of any Loan Party under the Loan Documents, (ii) Indebtedness of the Borrower in an aggregate principal amount not to exceed $200,000,000
in connection with those certain Convertible Senior Notes and (iii) the obligations of the Convertible Senior Note Guarantors to guaranty the Indebtedness outstanding in connection with the
Convertible Senior Notes; 

        Section 2.    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; and 

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

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

 

        Section 4.    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 to perform its obligations hereunder and under the Credit Agreement, as amended by this Amendment, in accordance with its terms. This Amendment has been duly executed and
delivered by a duly authorized officer of the Borrower and this Amendment and the Credit Agreement, as amended by this Amendment, is a legal, valid and binding obligation of the Borrower 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 performance by the
Borrower of this Amendment and the Credit Agreement, as amended by this Amendment, 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 5.    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 6.    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 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 7.    Certain References. Each reference to the Credit Agreement in any of the Loan Documents shall be deemed to
be a reference to the Credit Agreement, as amended by this Amendment. 

        Section 8.    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 and the other agreements and documents executed and delivered in connection
herewith. 

        Section 9.    Benefits. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns. 

        Section 10.    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. 

2

 

        Section 11.    Effect. Except as expressly herein amended, the terms and conditions of the Credit Agreement 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 12.    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 13.    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] 

3

        IN WITNESS WHEREOF, the parties hereto have caused this Fourth 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/ Evrett W. Benton

	 	 	Name:	 	Evrett W. Benton
	 	 	Title:	 	President
	

 	
 	

THE LENDER:
	

 	
 	

WACHOVIA BANK, NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/ David M. Blackman

	 	 	Name:	 	David M. Blackman
	 	 	Title:	 	Managing Director

[Signatures Continued on Next Page] 

[Signature Page to Fourth 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/ Evrett W. Benton

	 	 	Name:	 	Evrett W. Benton
	 	 	Title:	 	President

[Signatures Continued on Next Page] 

[Signature Page to Fourth 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/ Evrett W. Benton

	 	 	Name:	 	Evrett W. Benton
	 	 	Title:	 	President
	

 	
 	

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/ Evrett W. Benton

	 	 	Name:	 	Evrett W. Benton
	 	 	Title:	 	President

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