0001104659-16-153821.txt : 20161102 0001104659-16-153821.hdr.sgml : 20161102 20161101175528 ACCESSION NUMBER: 0001104659-16-153821 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20161101 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20161102 DATE AS OF CHANGE: 20161101 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIVE STAR QUALITY CARE, INC. CENTRAL INDEX KEY: 0001159281 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SKILLED NURSING CARE FACILITIES [8051] IRS NUMBER: 043516029 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16817 FILM NUMBER: 161965829 BUSINESS ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 BUSINESS PHONE: (617) 796 8387 MAIL ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 FORMER COMPANY: FORMER CONFORMED NAME: FIVE STAR QUALITY CARE INC DATE OF NAME CHANGE: 20010918 8-K 1 a16-20586_28k.htm 8-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): November 1, 2016

 

FIVE STAR QUALITY CARE, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

(State or Other Jurisdiction of Incorporation)

 

 

001-16817

 

04-3516029

(Commission File Number)

 

(IRS Employer Identification No.)

 

400 Centre Street, Newton, Massachusetts

 

02458

(Address of Principal Executive Offices)

 

(Zip Code)

 

617-796-8387

(Registrant’s Telephone Number, Including Area Code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

 


 

Item 9.01.  Financial Statements and Exhibits.

 

(d)  Exhibits.

 

99.1

 

Letter dated November 1, 2016 from Senior Housing Properties Trust to Gemini Properties (including all attachments thereto).

 

 

 

99.2

 

Letter dated November 1, 2016 from 400 Centre Street LLC to Gemini Properties (including the attachment thereto).

 

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FIVE STAR QUALITY CARE, INC.

 

 

 

 

 

 

 

By:

/s/ Richard A. Doyle

 

Name:

Richard A. Doyle

 

Title:

Chief Financial Officer and Treasurer

 

Dated:  November 1, 2016

 

3

 EX-99.1 2 a16-20586_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

November 1, 2016

 

Mr. Robert D. Thomas, Partner

Gemini Properties

1516 South Boston Avenue, Suite 301

Tulsa, OK    74119

 

Dear Mr. Thomas:

 

Your several letters dated October 28, 2016 (copies of which are attached), have been reviewed by the SNH Board of Trustees, including SNH’s Independent Trustees.

 

Your letters ask for waivers of SNH’s contractual rights in the event your intention to seek election of a director candidate to Five Star Quality Care, Inc. Board of Directors results in defaults of Five Star’s leases with SNH.  Your letters do not identify who you intend to propose for election to Five Star’s board, what the qualifications of that person may be or, importantly, what you or your nominee may intend regarding the SNH leases.  In such circumstances, SNH is not willing to provide the waivers you requested.

 

Finally, we note that your request (which was delivered after the close of business on Friday, October 28, 2016) for a response in less than two business days is an urgency of your own making, which the SNH Board does not appreciate.

 

 

Very truly yours,

 

 

 

/s/ Jennifer B. Clark

 

 

 

Jennifer B. Clark

 

Secretary

 

JCB:ccb

Enclosures

 

cc:  Five Star Quality Care, Inc.

 


 

ATTACHMENTS

 

GEMINI PROPERTIES

 

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH FM Financing LLC

SNH FM Financing Trust

Ellicott City Land I, LLC

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Amended and Restated Master Lease Agreement, dated August 4, 2009 (the “Lease Agreement”), by and among certain affiliates of Senior Housing Properties Trust (“Senior Housing”), including SNH FM Financing LLC, SNH FM Financing Trust, and Ellicott City Land I, LLC, as landlord (collectively, the “Landlord”), and FVE FM Financing, Inc., as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the

 


 

Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH/LTA SE Home Place New Bern, LLC

c/o Senior Housing Properties Trust

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-1634

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Lease Agreement, dated June 20, 2011 (the “Lease Agreement”), by and between SNH/LTA SE Home Place New Bern, LLC, as landlord (the “Landlord”), an affiliate of Senior Housing Properties Trust (“Senior Housing”), and FVE SE Home Place New Bern, LLC, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 


 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH/LTA SE McCarthy New Bern LLC

c/o Senior Housing Properties Trust

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-1634

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Lease Agreement, dated June 20, 2011 (the “Lease Agreement”), by and between SNH/LTA SE McCarthy New Bern LLC, as landlord (the “Landlord”), an affiliate of Senior Housing Properties Trust (“Senior Housing”), and FVE SE McCarthy New Bern LLC, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 


 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301

Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH/LTA SE Wilson LLC

c/o Senior Housing Properties Trust

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-1634

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Lease Agreement, dated June 23, 2011 (the “Lease Agreement”), by and between SNH/LTA SE Wilson LLC, as landlord (the “Landlord”), an affiliate of Senior Housing Properties Trust (“Senior Housing”), and FVE SE Wilson LLC, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 


 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH RMI Fox Ridge Manor Properties LLC

SNH RMI Jefferson Manor Properties LLC

SNH RMI McKay Manor Properties LLC

SNH RMI Northwood Manor Properties LLC

SNH RMI Oak Woods Manor Properties LLC

SNH RMI Park Square Manor Properties LLC

SNH RMI Smith Farms Manor Properties LLC

SNH RMI Sycamore Manor Properties LLC

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Master Lease Agreement, dated September 1, 2008 (the “Lease Agreement”), by and among certain affiliates of Senior Housing Properties Trust (“Senior Housing”), including SNH RMI Fox Ridge Manor Properties LLC, SNH RMI Jefferson Manor Properties LLC, SNH RMI McKay Manor Properties LLC, SNH RMI Northwood Manor Properties LLC, SNH RMI Oak Woods Manor Properties LLC, SNH RMI Park Square Manor Properties LLC, SNH RMI Smith Farms Manor Properties LLC, and SNH RMI Sycamore Manor Properties LLC, as landlord (collectively, the “Landlord”), and Five Star Quality Care-RMI, LLC, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a

 


 

Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH Somerford Properties Trust

SPTMNR Properties Trust

SNH/LTA Properties Trust

SPTIHS Properties Trust

SNH CHS Properties Trust

SNH/LTA Properties GA LLC

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Amended and Restated Master Lease Agreement (Lease No. 1), dated August 4, 2009 (the “Lease Agreement”), by and among certain affiliates of Senior Housing Properties Trust (“Senior Housing”), including SNH Somerford Properties Trust, SPTMNR Properties Trust, SNH/LTA Properties Trust, SPTIHS Properties Trust, SNH CHS Properties Trust, and SNH/LTA Properties GA LLC, as landlord (collectively, the “Landlord”), and Five Star Quality Care Trust, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord

 


 

take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SNH Somerford Properties Trust

SNH NS Properties Trust

SNH/LTA Properties Trust

SPTIHS Properties Trust

SNH CHS Properties Trust

SNH/LTA Properties GA LLC

CCOP Senior Living LLC

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Amended and Restated Master Lease Agreement (Lease No. 4), dated August 4, 2009 (the “Lease Agreement”), by and among certain affiliates of Senior Housing Properties Trust (“Senior Housing”), including SNH Somerford Properties Trust, SNH NS Properties Trust, SNH/LTA Properties Trust, SPTIHS Properties Trust, SNH CHS Properties Trust, SNH/LTA Properties GA LLC, and CCOP Senior Living LLC, as landlord (collectively, the “Landlord”), and Five Star Quality Care Trust, Five Star Quality Care - NS Tenant, LLC, and FS Tenant Holding Company Trust, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event

 


 

of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

SPTIHS Properties Trust

SPTMNR Properties Trust

SNH/LTA Properties GA LLC

SNH/LTA Properties Trust

O.F.C. Corporation

SNH CHS Properties Trust

CCC of Kentucky Trust

Leisure Park Venture Limited Partnership

CCDE Senior Living LLC

CCOP Senior Living LLC

CCC Pueblo Norte Trust

CCC Retirement Communities II, L.P.

CCC Investments I, L.L.C

CCC Financing I Trust

CCC Financing Limited, L.P.

SNH Somerford Properties Trust

HRES1 Properties Trust

c/o Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn: Mr. David J. Hegarty, President

 

Dear Mr. Hegarty,

 

Reference is made to that certain Amended and Restated Master Lease Agreement (Lease No. 2), dated August 4, 2009 (the “Lease Agreement”), by and among certain affiliates of Senior Housing Properties Trust (“Senior Housing”), including SPTIHS Properties Trust, SPTMNR Properties Trust, SNH/LTA Properties GA LLC, SNH/LTA Properties Trust, O.F.C. Corporation, SNH CHS Properties Trust, CCC of Kentucky Trust, Leisure Park Venture Limited Partnership, CCDE Senior Living LLC, CCOP Senior Living LLC, CCC Pueblo Norte Trust, CCC Retirement Communities II, L.P., CCC Investments I, L.L.C, CCC Financing I Trust, CCC Financing Limited, L.P., SNH Somerford Properties Trust, and HRES1 Properties Trust, as landlord (collectively, the “Landlord”), and Five Star Quality Care Trust, FS Tenant Holding Company Trust, FS Commonwealth LLC, and FS Patriot LLC, as tenant (the “Tenant”), pursuant to which Five Star Quality Care, Inc. (“Five Star” or the “Company”) serves as a guarantor (the “Guarantor”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director

 


 

candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including the various lease agreements with Senior Housing or its subsidiaries, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which is considered an event of default (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain waivers from Senior Housing or its subsidiaries under the various lease agreements with the Company or its subsidiaries as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 

 EX-99.2 3 a16-20586_2ex99d2.htm EX-99.2

Exhibit 99.2

 

400 Centre Street LLC

255 Washington Street, Suite 300

Newton, MA 02458

 

November 1, 2016

 

Gemini Properties

1516 South Boston Avenue, Suite 301

Tulsa, OK 74119

Attn: Mr. Robert D. Thomas

 

Dear Mr. Thomas:

 

400 Centre Street LLC has your letter, dated October 28, 2016 (a copy of which is attached), requesting that we waive a default under a lease agreement with Five Star Quality Care, Inc. (“Five Star”) that may result from the election of any individual to the Board of Directors of Five Star not nominated or appointed by the Five Star Board.

 

Your letter states that you “intend” to seek the election of a director. However, your letter provides no information about the identity of the intended nominee, his or her qualifications, the nominating shareholder, the plans of the intended nominee and nominating shareholder for Five Star, or anything else for that matter. As a result, 400 Centre Street LLC will take no action regarding your request at this time.

 

400 Centre Street LLC reserves its right to take appropriate action when and if you provide relevant information.

 

 

Very truly yours,

 

 

 

/s/ Jacqueline S. Anderson

 

 

 

Jacqueline S. Anderson

 

Assistant Secretary

 

JSA:ccb

Enclosure

 

cc: Five Star Quality Care, Inc.

 


 

GEMINI PROPERTIES

1516 South Boston Avenue, Suite 301
Tulsa, Oklahoma 74119

 

October 28, 2016

 

400 Centre Street LLC Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458

Attn: Jennifer B. Clark

 

Dear Ms. Clark,

 

Reference is made to that certain Lease Agreement, dated May 12, 2011 (the “Lease Agreement”), by and between 400 Centre Street LLC, as landlord (the “Landlord”), and Five Star Quality Care, Inc. (“Five Star” or the “Company”), as tenant (the “Tenant”).

 

Gemini Properties, together with William F. Thomas and Robert D. Thomas (collectively, the “Thomas Group” or “we”), who collectively beneficially own an aggregate of 3,364,737 shares of Common Stock of Five Star, intend to seek the election of a director candidate to the Board of Directors of the Company (the “Five Star Board”) at its 2017 Annual Meeting of Stockholders (the “Annual Meeting”). Pursuant to Section 2.14.2 of the Company’s Amended and Restated Bylaws (the “Bylaws”), if the submission of a stockholder nomination would cause the Company or any of its subsidiaries to be in breach of any covenant or otherwise cause a default in any existing agreement of the Company or any of its subsidiaries, including certain lease agreements, the nominating stockholder must submit certain evidence satisfactory to the Board of the contracting party’s willingness to waive any such breach of covenant or default.

 

Pursuant to the Lease Agreement, the election to the Five Star Board of any individual not nominated or appointed by vote of a majority of the directors of Five Star in office immediately prior to the nomination or appointment of such individual purportedly triggers a Change in Control (as defined therein) under the Lease Agreement, which allows for the Landlord to terminate the term of the Lease Agreement (“Default”) under such Lease Agreement. If the Thomas Group’s nominee is elected to the Board at the Annual Meeting, such election may cause a Default under the Lease Agreement. Accordingly, pursuant to the Bylaws, we are hereby requesting that the Landlord take any and all actions necessary to either (i) waive any Default under the Lease Agreement that may occur upon the election of the Thomas Group’s nominee to the Five Star Board at the Annual Meeting or (ii) deem the Thomas Group’s nominee as having been nominated or appointed by vote of a majority of the directors of Five Star for purposes of a Change in Control such that his or her election would not trigger a Change in Control and cause a Default under the Lease Agreement.

 

Nothing in this letter shall be interpreted to preclude the Thomas Group from making further requests for exemptions under the Lease Agreement, as it may be amended, or any related agreements thereto. Notwithstanding the submission of this letter, the Thomas Group reserves all rights to challenge the validity of any such purported requirement to obtain a waiver from

 


 

400 Centre Street LLC under the Lease Agreement with the Company as purportedly required under the Bylaws.

 

As time is of the essence in this matter, we request that you respond to us promptly, and, in any event, no later than 12pm EST on November 1, 2016. We reserve all rights under applicable law.

 

 

Sincerely,

 

 

 

GEMINI PROPERTIES

 

 

 

 

By:

/s/ Robert D. Thomas

 

 

Name: Robert D. Thomas

 

 

Title: Partner

 

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