Document:

Exhibit 10.1

 

THIRD AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT

THIS THIRD AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT (this “Amendment”) is made and entered into as of December 30, 2005 by and among (i) each of the parties identified on the signature page hereof as landlord (collectively, “Landlord”), and (ii) FIVE STAR QUALITY CARE TRUST, a Maryland business trust, as tenant (“Tenant”).

W I T N E S S E T H:

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, as further amended by that certain Second Amendment to Second Amended and Restated Lease Agreement dated as of June 3, 2005 (as so amended, the “Amended Lease”), Landlord leases to Tenant and Tenant leases from Landlord certain premises at various locations, including those premises as more particularly described on Exhibit A attached hereto (the “Valley View Premises”); and

WHEREAS, Landlord and Tenant now wish to terminate the Amended Lease with respect to the Valley View Premises and to amend the Amended Lease, subject to and upon the terms and conditions hereinafter provided;

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.     Tenant represents and warrants that Tenant has not assigned the Amended Lease with respect to the Valley View Premises or sublet all or any portion of the Valley View Premises or otherwise granted the right to occupy all or any portion of the Valley View Premises to any person or entity.

2.     Effective as of the date hereof, the Amended Lease is terminated with respect to the Valley View Premises and no party shall have any further rights or liabilities thereunder with respect to the Valley View Premises, except those rights and liabilities which by their terms survive termination of the Amended Lease.

 

 

 

3.     Exhibit A-7 of the Amended Lease is hereby amended by deleting it in its entirety and inserting “[INTENTIONALLY DELETED]” in its place.

4.     As partially terminated and amended hereby, the Amended Lease is hereby ratified and confirmed.

[SIGNATURE PAGES FOLLOW]

 

 

 

 

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

 

 

 

 

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

 

EXHIBIT A – The Valley View PremisesExhibit 10.2

 

Senior Housing Properties Trust

400 Centre Street

Newton, MA 02458

 

 

March 13, 2006

Five Star Quality Care Trust

400 Centre Street

Newton, MA 02458

Attention: Bruce J. Mackey

	
             
 	
            Re:
 	
            Second Amended and Restated Lease Agreement dated as of November 19, 2004 (as amended, the “Lease”)
 

Dear Bruce:

The purpose of this letter is to confirm that, pursuant to Section 4.1.1(b) of the Lease, Valley View was sold on December 31, 2005. The net proceeds of the sale received were $2,676,448.00. Accordingly, effective January 1, 2006, Minimum Rent payable under the Lease shall be reduced by $267,644.80 per annum.

Very truly yours,

 

/s/ John R. Hoadley

 

John R. Hoadley

 

Acknowledged and Agreed:

Five Star Quality Care Trust

 

	
            By:
 	
            /s/ Bruce J. Mackey Jr.
 
	
             
 	
            Bruce J. Mackey, Jr.
 	
             

	
             
 	
            TreasurerExhibit 10.3

 

FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED LEASE AGREEMENT

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

W I T N E S S E T H:

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, and that certain Letter Agreement, dated as of March 13, 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 five (5) senior living properties from certain affiliates of Holiday Retirement Corp. (collectively, the “Holiday Properties”); and

WHEREAS, Landlord and Tenant desire to amend the Lease to include the Holiday 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 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 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 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 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-Seven Million Six Hundred Forty-Six Thousand Three Hundred Forty-Four and 00/100 Dollars ($37,646,344.00) per annum.

 

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5.     Definition of Buena Vida Property.  The following new definition for the term “Buena Vida Property” is hereby added to the Consolidated Lease as a new Section 1.99:

“Buena Vida Property”  shall mean the Property known as Buena Vida and located in Naples, Florida on the Land described on Exhibit A-7 attached hereto.

6.     Definition of Holiday Properties.  The following new definition for the term “Holiday Properties” is hereby added to the Consolidated Lease as a new Section 1.100:

“Holiday Properties”  shall mean the Properties located on the Land described in Exhibit A-7 and Exhibits A-89 through and including A-92 attached hereto.

7.     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-92 attached hereto and made a part hereof (the “Land”).

8.     Additional Rent.  Section 3.1.2 of the Consolidated Lease is hereby amended by deleting the second sentence therefrom in its entirety.

9.     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 

 

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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 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 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 Holiday Property, eight and one quarter percent (8.25%) of the net proceeds determined by reference to such Offer.

10.    Exhibit A.  Exhibit A to the Consolidated Lease is hereby amended by deleting Exhibit A-7 attached thereto in its entirety and replacing it with Exhibit A-7 attached hereto and by adding Exhibits A-89 through A-92 attached hereto following Exhibit A-88 to the Consolidated Lease.

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

 

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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-7 - BUENA VIDA PROPERTY

EXHIBIT A-89

EXHIBIT A-90

EXHIBIT A-91

EXHIBIT A-92

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