ALTERRA HEALTHCARE CORP
EXHIBIT 10.4
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<P ALIGN="RIGHT">Exhibit 10.4</P>

<P ALIGN="CENTER"><B>FIRST AMENDMENT TO AMENDED AND RESTATED</P>

<P ALIGN="CENTER">MASTER LEASE AGREEMENT</B></P>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;THIS FIRST AMENDMENT TO AMENDED AND RESTATED MASTER LEASE AGREEMENT (&quot;Amendment&quot;) is dated as of July&nbsp;16, 2001 (the &quot;Effective Date&quot;) among <B>HEALTH CARE REIT, INC.</B>, a corporation organized under the laws of the State of Delaware (&quot;HCRI&quot; and a &quot;Landlord&quot;), <B>HCRI&nbsp;NORTH CAROLINA PROPERTIES, LLC</B>, a limited liability company organized under the laws of the State of Delaware (&quot;HCRI-NC&quot; and a &quot;Landlord&quot;), <B>HCRI&nbsp;TENNESSEE PROPERTIES, INC.</B>, a corporation organized under the laws of the State of Delaware (&quot;HCRI-TN&quot; and a &quot;Landlord&quot;), and <B>HCRI&nbsp;TEXAS PROPERTIES, LTD.</B>, a limited partnership organized under the laws of the State of Texas (&quot;HCRI-TX&quot; and a &quot;Landlord&quot;), each Landlord having its principal office located at One SeaGate, Suite&nbsp;1500, P.O. Box&nbsp;1475, Toledo, Ohio&nbsp;43603-1475, and <B>ALTERRA HEALTHCARE CORPORATION</B>, a corporation organized under the laws of the State of Delaware (&quot;Tenant&quot;), having its chief executive office located at 10000&nbsp;Innovation Drive, Milwaukee, Wisconsin  53226.</P>

<P ALIGN="CENTER"><b>R E C I T A L S</b></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant entered into an Amended and Restated Master Lease Agreement dated effective as of July&nbsp;1, 2001 (the &quot;Lease&quot;).</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant desire to amend the Lease to include four additional Facilities located in Valparaiso, Indiana and Vero Beach, Florida (the &quot;Additional Facilities&quot;) and as otherwise set forth herein.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.  Any capitalized terms not defined in this Amendment shall have the meaning set forth in the Lease.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#167;1.4 of the Lease is hereby amended to add the following:</P>

<P>     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&quot;Earnout Amount&quot; means $250,000.00.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective Date</U>.  The definition of Effective Date in &#167;1.4 of the Lease is hereby amended to read in its entirety as follows:</P>

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<P>&quot;Effective Date&quot; means the date of this Amendment as set forth in the first paragraph hereof.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lease Advance</U>.  The definition of Lease Advance in &#167;1.4 of the Lease is hereby amended to read in its entirety as follows:</P>

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<P>&quot;Lease Advance&quot; means [i]&nbsp;the Initial Lease Advance; [ii]&nbsp;the Lease Advance by Landlord to Tenant of even date of $12,750,000.00; [iii]&nbsp;the advance (if any) of the Earnout Amount made pursuant to &#167;2.8; or [iv]&nbsp;any other advance of funds by Landlord to Tenant pursuant to the term of this Lease.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lease Rate</U>.  The definition of Lease Rate in &#167;1.4 of the Lease is hereby amended to add the following:</P>

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Notwithstanding anything to the contrary set forth in this definition of Lease Rate, commencing on the Effective Date of this Amendment, the Lease Rate for the remainder of the Initial Term is 10.72%.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Earnout Disbursement</U>.  Article&nbsp;2 of the Lease is hereby amended to add the following &#167;2.8:</P>


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<P>2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Earnout Disbursement</U>.  If Tenant achieves an Additional Facility Coverage Ratio (hereinafter defined) of not less than 1.30 to 1.00 for eight consecutive quarters during the first four years of the Initial Term (including, if applicable, quarters prior to the commencement of the Initial Term), as evidenced by financial statements satisfactory to Landlord and provided that the Allocated Lease Amount for the Additional Facilities after payment of the Earnout Payment is less than ninety percent (90%) of the appraisal value of the Additional Facilities, Landlord shall disburse the Earnout Amount to Tenant upon Tenant's satisfaction of the following disbursement requirements:  [i]&nbsp;Tenant shall pay all of Landlord's reasonable out-of-pocket expenses, including, without limitation, attorneys' fees and expenses, incurred in connection with the Earnout Amount disbursement; [ii]&nbsp;no uncured Event of Default exists under this Lease and no event has occurred which, with the giving of notice, the passage of time or both, would constitute an Event of Default; and [iii]&nbsp;no material adverse change in the condition of Landlord or the Leased Property exists.  For purposes of this &#167;2.8 only, the Additional Facility Coverage Ratio shall be determined in the same manner as the Portfolio Coverage Ratio (defined in &#167;15.7.1(c)) except all references to Portfolio shall be deleted and shall be replaced with Additional Facilities in both &#167;15.7.1(b) and (c).  For purposes of this &#167;2.8, the calculation of the Additional Facility Coverage Ratio shall be made as if the Earnout Amount was included in the Lease Amount at the commencement of the period of 16&nbsp;consecutive quarters for which the calculation is being made.  Landlord shall not be obligated to disburse the Earnout Amount if Tenant does not satisfy the foregoing disbursement requirements within six months after the Additional Facility Coverage Ratio requirement has been satisfied.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Repairs</U>.  Article&nbsp;2 of the Lease is hereby amended to add the following &#167;2.9:</P>

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<P>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Roof Repair Escrow</U>.  Tenant acknowledges that there are certain roof repairs and other miscellaneous repairs (collectively &quot;Repairs&quot;) required at Alterra Sterling House of Valparaiso and Alterra Clare Bridge Cottage at Valparaiso (collectively &quot;Valparaiso Facilities&quot;).  Tenant agrees to cause the seller of the Valparaiso Facilities to escrow $150,000.00 (&quot;Escrow Amount&quot;) of the proceeds from the sale of the Valparaiso Facilities at the time of the Landlord's purchase of the Valparaiso Facilities.</P>
b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Budget</U>.  As soon as possible but in no event later than 30&nbsp;days after the Effective Date of this Amendment, Tenant shall provide Landlord with a budget setting forth the total cost for the Repairs of the Valparaiso Facilities, together with a construction contract for the Repairs.  Upon approval of the budget and the construction contract, Landlord shall release as much of the Escrow Amount as is necessary to retain 125% of the cost of the Repairs in escrow (&quot;Amended Escrow Amount&quot;).</P>
c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disbursement of Amended Escrow Amount</U>.  Landlord may make disbursements of the Amended Escrow Amount from time to time as repairs progress, but shall not be obligated to disburse more frequently than once in each calendar month and shall not be obligated to disburse until at least five Business Days following receipt of all documentation required for such disbursement.</P>
d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Documents Required for Disbursement</U>.  Prior to the disbursement of any Amended Escrow Amount, Tenant shall have provided Landlord with the following:  [i]&nbsp;budget; [ii]&nbsp;construction contract; [iii]&nbsp;disbursement voucher; and [iv]&nbsp;sworn statements, waivers of lien or such other documents as may be required to ensure Landlord that there are no mechanics liens.</P>
e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disbursement of Remaining Funds</U>.  Landlord shall not be obligated to make any disbursement except from the Amended Escrow Amount.  In the event that all costs for the Repairs have been paid and upon the earlier of [i]&nbsp;a sufficient amount of time passing to ensure that there are no mechanics liens; or [ii]&nbsp;Landlord receiving the appropriate lien waivers under Indiana law to release any and all mechanics liens, Landlord shall disburse any funds remaining in the Amended Escrow Amount to Tenant.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Commitment Fee</U>.  Article&nbsp;2 of the Lease is hereby amended to add the following &#167;2.9:</P>

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<P>2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Commitment Fee</U>.  On the Effective Date of this Amendment, Tenant shall pay a commitment fee to Landlord of $127,500.00.</P>
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<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and Warranties</U>.  Article&nbsp;22 of the Lease is hereby amended to make all representations and warranties effective as of the Effective Date.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal Description</U>.  Exhibit&nbsp;A of the Lease is hereby amended by the addition of Exhibit&nbsp;A-37 through Exhibit&nbsp;A-39 hereto.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Permitted Exceptions</U>.  Exhibit&nbsp;B of the Lease is hereby amended by the addition of Exhibit&nbsp;B-37 through Exhibit&nbsp;B-39 hereto.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Facility Information</U>.  Exhibit&nbsp;C of the Lease is hereby amended to read in its entirety as set forth on Exhibit&nbsp;C hereto.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Government Authorizations; Zoning Permits</U>. Exhibit&nbsp;G of the Lease is hereby amended by the addition of those items set forth on Exhibit&nbsp;G hereto.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Affirmation</U>.  Except as specifically modified by this amendment, the terms and provisions of the Lease are hereby affirmed and shall remain in full force and effect.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding Effect</U>. This Amendment will be binding upon and inure to the benefit of the successors and permitted assigns of Landlord and Tenant.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further Modification</U>. The Lease may be further modified only by writing signed by Landlord and Tenant.</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. This Amendment may be executed in multiple counterparts, each of which shall be deemed an original hereof, but all of which will constitute one and the same document.</P>

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<FONT SIZE=2><P>IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date first set forth above.</P>

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<P><FONT SIZE=2>Signed and acknowledged in the presence of:</FONT></TD>
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<P><FONT SIZE=2>HEALTH CARE REIT, INC.</P>
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<P><FONT SIZE=2>Signature <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>By: <U>/s/ Eric C. Ibele&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U>Rita J. Rogge     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">
<P><FONT SIZE=2>Title: Vice President and Corporate Secretary</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name  <U>Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">&nbsp;</TD>
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<P><FONT SIZE=2>HCRI NORTH CAROLINA PROPERTIES, LLC</FONT></TD>
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<TD WIDTH="46%" VALIGN="TOP">&nbsp;</TD>
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<P><FONT SIZE=2>By: Health Care REIT, Inc.</P>
<P>       Member</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>By: <U>/s/ Eric C. Ibele&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U>Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">
<P><FONT SIZE=2>Title: Vice President and Corporate Secretary</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Margaret G. Stick     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name  <U>Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>HCRI TENNESSEE PROPERTIES, INC.</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>By: <U>/s/ Eric C. Ibele&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U>Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">
<P><FONT SIZE=2>Title: Vice President and Corporate Secretary</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name  <U>Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>HCRI TEXAS PROPERTIES, LTD.</FONT></TD>
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<P><FONT SIZE=2>By: Health Care REIT, Inc.</FONT></TD>
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<P><FONT SIZE=2>General Partner</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U>Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">
<P><FONT SIZE=2>By: <U>/s/ Eric C. Ibele&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<TD WIDTH="46%" VALIGN="TOP">&nbsp;</TD>
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<P><FONT SIZE=2>Title: Vice President and Corporate Secretary</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
<TD WIDTH="54%" VALIGN="TOP">&nbsp;</TD>
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<P><FONT SIZE=2>Print Name  <U>Margaret G. Stick&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>ALTERRA HEALTHCARE CORPORATION</FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s Peter Ferge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>By: <U>/s/ Kristin A. Ferge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U> Peter Ferge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Title: <U>Vice President&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Signature <U>/s/ Lisa Ulicki&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P><FONT SIZE=2>Print Name <U>/s/ Lisa Ulicki&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<U><P><FONT SIZE=2>TAX I.D. No.: 39-1771281&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></FONT></TD>
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<P>STATE OF OHIO&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp)<BR>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;) SS:<BR>
COUNTY OF LUCAS&nbsp; &nbsp; &nbsp;)</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The foregoing instrument was acknowledged before me this 16th day of July, 2001 by Erin C. Ibele, the Vice President and Corporate Secretary of Health Care REIT, Inc., a Delaware corporation, on behalf of the corporation.</P>
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<P ALIGN="RIGHT"> <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<BR></U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Notary Public</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>

<P>My Commission Expires:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;[SEAL] <BR><BR>
STATE OF OHIO&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp)<BR>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;) SS:<BR>
COUNTY OF LUCAS&nbsp; &nbsp; &nbsp;)</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The foregoing instrument was acknowledged before me this 16th day of July, 2001 by Erin C. Ibele, the Vice President and Corporate Secretary of Health Cre REIT, Inc., a Delaware corporation and the sole member of HCRI North Carolina Properties, LLC, a limited liability company organized under the laws of the State of Delaware on behalf of the limited liability company.</P>

<P ALIGN="RIGHT"> <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<BR></U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Notary Public</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>

<P>My Commission Expires:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;[SEAL] <BR><BR></P>

<P>STATE OF OHIO&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp)<BR>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;) SS:<BR>
COUNTY OF LUCAS&nbsp; &nbsp; &nbsp;)</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The foregoing instrument was acknowledged before me this 16th day of July, 2001 by Erin C. Ibele, the Vice President and Corporate Secretary of HCRI Tennessee Properties, Inc., a corporation organized under the laws of the State of Delaware on behalf of the corporation.</P>

<P ALIGN="RIGHT"> <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<BR></U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Notary Public</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>

<P>My Commission Expires:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;[SEAL] </P><BR><BR>
<BR>
<BR>
<CENTER>S-2
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P>STATE OF OHIO&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp)<BR>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;) SS:<BR>
COUNTY OF LUCAS&nbsp; &nbsp; &nbsp;)</P>
</FONT>
<BR>
<BR>

<FONT SIZE=2>
<P>The foregoing instrument was acknowledged before me this 16th day of July, 2001 by Erin C. Ibele, the Vice President and Corporate Secretary of Health Care REIT, Inc., a Delaware corporation and the general partner of HCRI Texas Properties, Ltd., a limited liability partnership organized under the laws of the State of Texas on behalf of the limited partnership. organized under the laws of the State of Delaware on behalf of the corporation.</P>

<P ALIGN="RIGHT"> <U>/s/ Rita J. Rogge&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<BR></U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Notary Public</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>

<P>My Commission Expires:&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;     &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;[SEAL]</P>
<BR>
<BR>

<P>STATE OF WISCONSIN&nbsp; &nbsp; &nbsp; )<BR>
  &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;) SS:<BR>
COUNTY OF MILWAUKEE)</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The foregoing instrument was acknowledged before me this 14th day of July, 2001 by Kristin A. Ferge, the Vice President of Alterra Healthcare Corporation, a Delaware corporation, on behalf of the corporation.</P>

<P>&nbsp;</P>
<P ALIGN="RIGHT"> <U>/s/ J. C. Hansen&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<BR></U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Notary Public</P>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>

<P>THIS INSTRUMENT PREPARED BY:</P>

<P>Oksana M. Ludd, Esq.<BR>
Shumaker, Loop &amp; Kendrick, LLP<BR>
1000 Jackson<BR>
Toledo, Ohio 43624</P>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>

<P>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</P>
</FONT>
<P>&nbsp;</P>
<P ALIGN="CENTER">S-3</P>
<BR>
<BR>
<CENTER>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P ALIGN="CENTER"><B>EXHIBIT&nbsp;C:  FACILITY INFORMATION</B></P>

<BR>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER">&nbsp;</TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2><b>Allocated Lease</b> </FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2><P><b>Facility Type (per license)</b> </FONT></TD>
<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2><b><u>Facility Name/Address</u></b></FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> <b><u>Amount</u></b></FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2><b><u>Beds/Units</u></b></FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">1.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Clare Bridge of Bradenton<br>
6101&nbsp;Pointe W Blvd.<BR>
Bradenton, FL  34209<BR>
Manatee County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,550,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
40&nbsp;beds<BR>
34&nbsp;units<BR></FONT></TD></P>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">2.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Clare Bridge of Sarasota<BR>
8450&nbsp;McIntosh Road<BR>
Sarasota, FL  34238<BR>
Sarasota County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,650,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
38&nbsp;beds<BR>
34&nbsp;units</FONT></P></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">3.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Ponca City<BR>
1500&nbsp;E. Bradley Avenue<BR>
Ponca City, OK  74604<BR>
Kay County</p></FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,650,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</P></FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">4.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Norman<BR>
1701&nbsp;Alameda Street<BR>
Norman, OK  73071<BR>
Cleveland County </P></FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,539,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</P></FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">5.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Lawton <BR>
6302&nbsp;W. Lee Road<BR>
Lawton, OK  73505<BR>
Comanchie County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,600,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
42&nbsp;beds<BR>
42&nbsp;units</P></FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">6.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Bartlesville<BR>
5420&nbsp;S.E. Adams Blvd.<BR>
Bartlesville, OK  74006<BR>
Washington County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living <BR> 39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">7.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Enid<BR>
4613&nbsp;W. Willow Road<BR>
Enid, OK  73703<BR>
Garfield County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">8.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Stillwater<BR>
1616&nbsp;McElroy Road<BR>
Stillwater, OK  74075<BR>
Payne County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">9.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Shawnee<BR>
3947&nbsp;Kickapoo<BR>
Shawnee, OK  74804<BR>
Pottowatomie County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">10.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Midwest City<BR>
615&nbsp;W. Blue Ridge Drive<BR>
Midwest City, OK  73110<BR>
Oklahoma County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">11.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Claremore<BR>
1605&nbsp;N. Highway&nbsp;88<BR>
Claremore, OK  74017<BR>
Rogers County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,582,500</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>
43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">12.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Waxahachie<BR>
2250&nbsp;Brown Street<BR>
Waxahachie, TX  75165<BR>
Ellis County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,582,500</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
60&nbsp;beds<BR>
50&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">13.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Palestine<BR>
101&nbsp;Trinity Court<BR>
Palestine, TX  75801<BR>
Anderson County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,582,500</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>
43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">14.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Muskogee<BR>
3211&nbsp;E. Chandler Road<BR>
Muskogee, OK  74403<BR>
Muskogee County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,582,500</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>
43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">15.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Owasso<BR>
12807&nbsp;E. 86<SUP>th&nbsp;</SUP>Place&nbsp;N.<BR>
Owasso, OK  74055<BR>
Tulsa County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,595,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">16.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<P><FONT SIZE=2>Sterling House of Texarkana<BR>
4204&nbsp;Moores Lane<BR>
Texarkana, TX  75503<BR>
Bowie County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,595,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>Assisted Living<BR>
60&nbsp;beds<BR>
50&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TR>
<TD WIDTH="6%" VALIGN="TOP">17.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of N. Oklahoma City<BR>
2435&nbsp;N.W. 122<SUP>nd</SUP>&nbsp;Street<BR>
N. Oklahoma City, OK  73120<BR>
Oklahoma County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,595,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>
43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">18.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Chickasha<BR>
801&nbsp;Country Club Road<BR>
Chickasha, OK  74058<BR>
Grady County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">19.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Desoto<BR>
747&nbsp;W. Pleasant Run<BR>
Desoto, TX  75115<BR>
Dallas County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,595,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
60&nbsp;beds<BR>
50&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">20.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Oklahoma City<BR>
2500&nbsp;S.W. 89<SUP>th&nbsp;</SUP>Street<BR>
Oklahoma City, OK  73159<BR>
Oklahoma County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,480,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">21.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Duncan<BR>
915&nbsp;Plato Road<BR>
Duncan, OK  73533<BR>
Stephens County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,450,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
39&nbsp;beds<BR>
39&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">22.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Cedar Hill<BR>
602&nbsp;E. Beltline Road<BR>
Cedar Hill, TX  75104<BR>
Dallas County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=60>
<P ALIGN="CENTER"><FONT SIZE=2>$1,661,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP" HEIGHT=60>
<FONT SIZE=2>Assisted Living<BR>
60&nbsp;beds<BR>
50&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">23.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Findlay<BR>
725&nbsp;Fox Run Road<BR>
Findlay, OH  45840<BR>
Hancock County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,000,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
37&nbsp;beds<BR>
37&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">24.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Troy<BR>
81&nbsp;S. Stanfield Road<BR>
Troy, OH 45373<BR>
Miami County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,200,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
37&nbsp;beds<BR>
37&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">25.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Georgetown<BR>
2600&nbsp;University Drive&nbsp;E<BR>
Georgetown, TX  78626<BR>
Williamson County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,300,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
54&nbsp;beds<BR>
54&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">26.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Piqua<BR>
1744&nbsp;W. High Street<BR>
Piqua, OH  45356<BR>
Miami County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,120,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
37&nbsp;beds<BR>
37&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">27.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Clarksville<BR>
2183&nbsp;Memorial Drive<BR>
Clarksville, TN  37043<BR>
Montgomery County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,622,279</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
49&nbsp;beds<BR>
49&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">28.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Canton<BR>
1119&nbsp;Perry Drive&nbsp;N.W.<BR>
Canton, OH  44708<BR>
Stark County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,398,100</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
42&nbsp;beds<BR>
42&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">29.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Clare Bridge of Oklahoma City<BR>
12401&nbsp;Dorset Drive<BR>
Oklahoma City, OK  73120<BR>
Oklahoma County<BR>
(Still in retainage)</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,200,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
38&nbsp;beds<BR>
34&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">30.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of N. Augusta<BR>
105&nbsp;N. Hills Drive<BR>
N. Augusta, SC  29841<BR>
Aiken County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,890,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
52&nbsp;beds<BR>
52&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">31.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Clare Bridge of Salem<BR>
1355&nbsp;Boone Road S.E.<BR>
Salem, OR  97306<BR>
Marion County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$5,620,298</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
60&nbsp;beds<BR>
60&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">32.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Clare Bridge of Asheville<BR>
4&nbsp;Walden Ridge Drive<BR>
Asheville, NC  28803<BR>
Buncombe County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,692,675</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
38&nbsp;beds<BR>
34&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">33.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Columbia<BR>
5011&nbsp;Trotwood Avenue<BR>
Columbia, TN  38401<BR>
Maury County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,635,620</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
49&nbsp;beds<BR>
49&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">34.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Clare Bridge of Wilmington<BR>
3501&nbsp;Converse Drive<BR>
<P>Wilmington, NC  28403<BR>
New Hanover County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,200,939</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
38&nbsp;beds<BR>
34&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">35.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Clare Bridge of Everett<BR>
2015&nbsp;Lake Heights Drive<BR>
Everett, WA  98208<BR>
Snohomish County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$6,876,202</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
52&nbsp;beds<BR>
46&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">36.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Edmond<BR>
116&nbsp;W. Danforth Road<BR>
Edmond, OK  73003<BR>
Oklahoma County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$1,739,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Assisted Living<BR>
43&nbsp;beds<BR>
43&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">37.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Sterling House of Valparaiso<BR>
2601 Valparaiso St.<BR>
Valparaiso, IN 46383<BR>
Porter County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$2,670,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Residential Care<BR>
42&nbsp;beds<BR>
42&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">38.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Alterra Clare Bridge Cottage of Valparaiso<BR>
2501 Valparaiso St.<BR>
Valparaiso, IN  46383<BR>
Porter County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,070,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Residential Care<BR>
36&nbsp;beds<BR>
32&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">39.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Alterra Sterling House of Vero Beach<BR>
410 4th Court<BR>
Vero Beach, FL  32962<BR>
Indian River County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,560,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Residential Care<BR>
42&nbsp;beds<BR>
42&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="TOP">40.</TD>
<TD WIDTH="34%" VALIGN="TOP">
<FONT SIZE=2>Alterra Clare Bridge Cottage of Vero Beach<BR>
420 4th Court<BR>
Vero Beach, FL  32962<BR>
Indian River County</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT SIZE=2>$3,450,000</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT SIZE=2>Residential Care<BR>
36&nbsp;beds<BR>
32&nbsp;units</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2> &nbsp;</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>

<TR>
<TD WIDTH="6%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2>TOTAL</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE=2>$94,415,113</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<P><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>

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