CONFIRMATION OF GUARANTEES AND CONFIRMATION AND AMENDMENT OF OTHER INCIDENTAL DOCUMENTS
EXHIBIT 10.3
CONFIRMATION OF GUARANTEES AND CONFIRMATION
AND AMENDMENT OF OTHER INCIDENTAL DOCUMENTS
THIS CONFIRMATION OF GUARANTEES AND CONFIRMATION AND AMENDMENT OF OTHER INCIDENTAL DOCUMENTS (this Confirmation) is made as of October 31, 2005 by FIVE STAR QUALITY CARE, INC., a Maryland corporation (the Guarantor), FIVE STAR QUALITY CARE TRUST, a Maryland business trust (the Tenant), FSQ, INC., a Delaware corporation (the Tenant Pledgor), each of the parties identified on the signature page hereof as a subtenant pledgor (collectively, the Subtenant Pledgors) and each of the parties identified on the signature page hereof as a subtenant (collectively, the Subtenants) for the benefit of each of the parties identified on the signature page hereof as a landlord (collectively, the Landlords).
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 and that certain Second Amendment to Second Amended and Restated Lease dated as of June 3, 2005 (as so amended, the Consolidated Lease), the Landlords lease to the Tenant, and the Tenant leases from the Landlords, certain property, all as more particularly described in the Consolidated Lease; and
WHEREAS, the payment and performance obligations of the Tenant with respect to the Consolidated Lease are guaranteed by those certain Guaranty Agreements described on Exhibit A attached hereto (collectively, the Guarantees); and
WHEREAS, the payment and performance obligations of the Tenant with respect to the Consolidated Lease are further secured by the other Incidental Documents (this and other capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Consolidated Lease); and
WHEREAS, pursuant to a Third Amendment to Second Amended and Restated Lease Agreement, dated as of the date hereof (the Third Amendment), the Consolidated Lease is being amended to add certain properties, as more particularly described in the Third Amendment;
WHEREAS, the Tenant intends to enter into a sublease (the Sublease) with Five Star Quality Care-GHV, LLC, a Maryland
limited liability company (FVE-GHV) to sublease the properties being added to the Consolidated Lease pursuant to the Third Amendment to FVE-GHV;
WHEREAS, in connection with, and as a condition precedent to, the execution of the Third Amendment by the Landlords, the Landlords have required that the parties hereto confirm that the Guarantees and the other Incidental Documents remain in full force and effect and apply to the Consolidated Lease as amended by the Third Amendment; and
WHEREAS, in connection with the execution of the Third Amendment and the Sublease, the parties hereto wish to amend certain of the Incidental Documents, including (i) the Security Agreement, dated as of December 31, 2001, by and among certain of the Subtenants and certain of the Landlords, as amended and confirmed from time to time (the Subtenant Security Agreement); (ii) the Security Agreement, dated as of December 31, 2001, by and among the Tenant and certain of the Landlords, as amended and confirmed from time to time (the Tenant Security Agreement); and (iii) the Second Amended and Restated Pledge of Stock and Membership Interests Agreement, dated as of May 6, 2005, made by the Subtenant Pledgors for the benefit of the Landlords, as amended and confirmed from time to time (the Subtenant Pledge Agreement), all subject to and upon the terms and conditions herein set forth;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1. Joinder by FVE-GHV. FVE-GHV hereby joins in the Subtenant Security Agreement as if it had originally executed and delivered the Subtenant Security Agreement as a Subtenant thereunder. FVE-GHV hereby joins in the Subtenant Guaranty (as defined in Exhibit A hereof) as if it had originally executed and delivered the Subtenant Guaranty as a Subtenant thereunder.
2. Amendment of Subtenant Security Agreement. The Subtenant Security Agreement is hereby amended by: (i) inserting the following at the end of Exhibit A attached thereto:
31. Sublease Agreement, dated October 31, 2005, by and between Five Star Quality Care Trust, a Maryland business trust, and Five Star Quality Care-GHV, LLC, a Maryland limited liability company.
(ii) inserting the following at the end of Schedule 1 attached thereto:
Five Star Quality Care-GHV, LLC, a Maryland limited liability company No:_______________ | 400 Centre Street Newton, MA 02458 | None. |
and (iii) inserting the following in the appropriate order on Schedule 2 attached thereto:
| PENNSYLVANIA: | FRANCISCAN MANOR 71 Darlington Road Beaver Falls, PA 15010
| Five Star Quality Care-GHV, LLC |
| MOUNT VERNON OF ELIZABETH 145 Broadlawn Drive Elizabeth, PA 15037
| Five Star Quality Care-GHV, LLC | |
| MOUNT VERNON OF SOUTH PARK 1400 Riggs Road South Park, PA 15129
| Five Star Quality Care-GHV, LLC | |
| OVERLOOK GREEN 5250 Meadowgreen Drive Pittsburgh, PA 15236
| Five Star Quality Care-GHV, LLC | |
| RIDGEPOINTE 5301 Brownsville Road Pittsburgh, PA 15236
| Five Star Quality Care-GHV, LLC | |
| ROLLING HILLS MANOR 600 Newport Drive Baldwin, PA 15234 | Five Star Quality Care-GHV, LLC | |
3. Amendment of Tenant Security Agreement. The Tenant Security Agreement is hereby amended by inserting the following in the appropriate order on Schedule 2 attached thereto:
PENNSYLVANIA:
FRANCISCAN MANOR
71 Darlington Road
Beaver Falls, PA 15010
MOUNT VERNON OF ELIZABETH
145 Broadlawn Drive
Elizabeth, PA 15037
MOUNT VERNON OF SOUTH PARK
1400 Riggs Road
South Park, PA 15129
OVERLOOK GREEN
5250 Meadowgreen Drive
Pittsburgh, PA 15236
RIDGEPOINTE
5301 Brownsville Road
Pittsburgh, PA 15236
ROLLING HILLS MANOR
600 Newport Drive
Baldwin, PA 15234
4. Amendment of Subtenant Pledge Agreement. The Subtenant Pledge Agreement is hereby amended by (i) inserting the following at the end of Exhibit A attached thereto:
35. Sublease Agreement, dated October 31, 2005, by and between Five Star Quality Care Trust, a Maryland business trust, as sublandlord, and Five Star Quality Care-GHV, LLC, a Maryland limited liability company, as subtenant.
and (ii) inserting the following at the end of Exhibit B attached thereto:
| 33. | Five Star Quality Care-GHV, LLC. |
5. Confirmation of Guarantees. Each of the parties to the Guarantees hereby confirms that all references in the Guarantees to the Master Lease or the Lease shall refer to the Consolidated Lease as amended by the Third Amendment and the Guarantees are hereby ratified and confirmed in all respects.
6. Confirmation of Other Incidental Documents. Each of the parties to the Incidental Documents (other than the Guarantees) hereby confirms that all references in such Incidental Documents to the Master Lease, the Lease or the Second Amended Lease shall refer to the Consolidated Lease as amended by the Third Amendment and that such Incidental Documents, as amended by this Confirmation, are hereby ratified and confirmed in all respects.
7. No Impairment, Etc. The obligations, covenants, agreements and duties of the guarantors under the Guarantees shall not be impaired in any manner by the execution and delivery of the Third Amendment, the Guarantees, the other Incidental Documents, or any amendments, changes or modifications thereof, and in no event shall any ratification or confirmation of such Guarantees or such other Incidental Documents, or the obligations, covenants, agreements and the duties of the guarantors thereunder or of the parties under the other Incidental Documents, including, without limitation, this Confirmation, be required in connection with any such amendment, change or modification.
[Signatures on following page.]
IN WITNESS WHEREOF, the parties hereto have caused this Confirmation to be duly executed, as a sealed instrument, as of the date first set forth above.
GUARANTOR: |
|
FIVE STAR QUALITY CARE, INC. |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
Treasurer, Chief Financial Officer and Assistant Secretary |
|
|
TENANT: |
|
FIVE STAR QUALITY CARE TRUST |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
Treasurer, Chief Financial Officer and Assistant Secretary |
|
|
TENANT PLEDGOR: |
|
FSQ, INC. |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
Treasurer, Chief Financial Officer and Assistant Secretary |
SUBTENANT PLEDGORS: |
|
FSQ, INC., FIVE STAR QUALITY CARE |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
|
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LIFETRUST PROPERTIES, L.L.C. |
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By: LifeTrust America Inc., |
Its Sole Member |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
Treasurer, Chief Financial Officer |
SUBTENANTS: |
|
FIVE STAR QUALITY CARE-AZ, LLC, |
FIVE STAR QUALITY CARE-COLORADO, LLC, |
FIVE STAR QUALITY CARE-CT, LLC, |
FIVE STAR QUALITY CARE-NE, INC., |
MORNINGSIDE OF GALLATIN, LLC, THE |
MORNINGSIDE OF BELMONT, LLC |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
Treasurer, Chief Financial |
MORNINGSIDE OF ANDERSON, L.P., |
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By: LifeTrust America, Inc., |
General Partner of each of the |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
|
MORNINGSIDE OF BELLGRADE, RICHMOND, |
|
By: LifeTrust America, Inc., |
Member of each of the foregoing |
|
By: /s/ Bruce J. Mackey Jr. |
Bruce J. Mackey Jr. |
LANDLORD: |
HRES2 PROPERTIES TRUST, |
SPTIHS PROPERTIES TRUST, |
SPT-MICHIGAN TRUST, |
SPTMNR PROPERTIES TRUST, |
SNH CHS PROPERTIES TRUST, |
ELLICOTT CITY LAND I, LLC, |
ELLICOTT CITY LAND II, LLC, |
SNH/LTA PROPERTIES TRUST and |
SNH/LTA PROPERTIES GA LLC |
|
By: /s/ John R. Hoadley |
John R. Hoadley |
Treasurer of each of the |
EXHIBIT A
GUARANTEES
1. | Guaranty Agreement, dated as of December 31, 2001, made by Guarantor in favor of HRES2 Properties Trust, SPTIHS Properties Trust, SPT-Michigan Trust and SPTMNR Properties Trust. |
2. | Guaranty Agreement, dated as of October 25, 2002, made by Guarantor in favor of SNH CHS Properties Trust. |
3. | Guaranty Agreement, dated as of October 25, 2002, made by certain of the Subtenants in favor of SNH CHS Properties Trust (the Subtenant Guaranty). |
The Guarantees were confirmed pursuant to (i) that certain Confirmation of Guarantees and Security Documents, dated as of March 1, 2004, made by certain of the parties hereto; (ii) that certain Confirmation of Guarantees and Other Incidental Documents, dated as of June 23, 2004, made by certain of the parties hereto; (iii) that certain Confirmation of Guarantees and Other Incidental Documents, dated as of November 19, 2004, made by certain of the parties hereto; and (iv) that certain Confirmation of Guarantees and Confirmation and Amendment of Other Incidental Documents, dated as of June 3, 2005, made by certain of the parties hereto.