PREPARED
      BY:


David
      J.
      White


Baker,
      Donelson, Bearman, Caldwell & Berkowitz, P.C.


211
      Commerce Street, Suite 1000


Nashville,
      Tennessee 37201


615.726.5600





RECORD
      AND RETURN TO:


Pircher,
      Nichols & Meeks


900
      North
      Michigan Avenue, Suite 1050


Chicago,
      Illinois 60611


312.915.3139


Attention:
      Elchanan Finestone, Esq.








TAX
      PARCEL NO. 10-17-1035-176











**LEASE
      TERMINATION AGREEMENT**




**THIS
      LEASE TERMINATION AGREEMENT** (the
“Termination”) is dated as of March ___, 2007, and is effective at the Effective
      Time (as defined in **Section
      1** hereof),
      and is by and among **HR
      ACQUISITION I CORPORATION,** a
      Maryland corporation, **HR
      ACQUISITION OF PENNSYLVANIA, INC.** ,
      a
      Pennsylvania corporation (f/k/a Capstone Capital of Pennsylvania, Inc.), and **HRT
      HOLDINGS, INC** .,
      a
      Delaware corporation (collectively
      the “Landlord”), with an address of 3310 West End Avenue, Suite 700, Nashville,
      Tennessee 37203, and **EMERITUS
      CORPORATION** ,
      a
      Washington corporation (the
“Tenant”), with an address of 3131
      Elliott Avenue, Suite 500, Seattle, Washington 98121 .





**PRELIMINARY
      STATEMENTS**




A.  Pursuant
      to that certain Lease Agreement identified on **Exhibit
      A** attached
      hereto (the “Lease”), Tenant leased from Landlord the premises more particularly
      described as the “Leased Property” in the Lease (the “Premises”).




B.  I n
      conjunction with the conveyance of the Premises by Landlord to Tenant, Landlord
      and Tenant wish to agree and consent to the termination of the Lease .




**TERMS**




**NOW,
      THEREFORE** ,
      in
      consideration of the sum of Ten and No/100 Dollars ($10.00) and other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and the mutual promises contained in this Termination, the
      parties, intending to be legally bound, agree as follows:




1.  Landlord
      and Tenant hereby agree and consent to the termination of the Lease,


Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania


effective
      as of ______ __.m. (Eastern Time) on the date hereof (the “Effective Time”);
      provided, however, that Tenant is not released from any liabilities, duties
      or
      obligations under the Lease that arose or accrued prior to the Effective Time,
      including, without limitation, the obligation, responsibility or liability
      for
      the payment to Landlord or any other person or entity for any losses,
      liabilities, damages, injuries, penalties, fines, costs, expenses, claims and
      other amounts of any and every kind whatsoever (including, without limitation,
      reasonable attorneys’ fees and expenses) that
      relate to (a) the Lease; (b) Tenant’s occupancy of the Premises or the
      improvements thereon; (c) the use
      or
      enjoyment of any appurtenances, easements, rights and privileges belonging
      to
      the Premises by Tenant or its invitees, officers,
      contractors, subcontractors, agents, representatives or employees ;
      or (d) causes
      of
      action, claims, suits, actions or other proceedings (i) pending at the Effective
      Time or (ii) filed or made at or after the Effective Time and relating to events
      occurring or liabilities or obligations arising or accruing prior to the
      Effective Time.





2.  Tenant
      hereby releases and forever discharges Landlord from all known or unknown causes
      of action, claims, suits, actions, demands or other proceedings of any kind
      that
      Tenant has as of the Effective Time or may have after the Effective Time on
      account of or in any way arising out of or related to the Lease or the
      Premises.





3.  This
      Termination shall be construed and interpreted in accordance with the laws
      of
      the State in which the Premises are located.





4.  This
      Termination shall inure to the benefit of the successors and assigns of the
      parties hereto.





5.  This
      Termination may be executed in any number of counterparts, each of which shall
      be deemed an original hereof and all of which together shall constitute but
      one
      Termination. In the event of any conflict between the terms of this Termination
      and the terms of the Lease, the terms of this Termination shall govern and
      shall
      be controlling.


Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania





**IN
      WITNESS WHEREOF** ,
      the
      parties hereto have executed this instrument effective on the date set forth
      above.




**LANDLORD:**





**HR
      ACQUISITION I CORPORATION** ,
      a         Maryland
      corporation





Witness:       By:__/s/
      John M. Bryant, Jr._ ______


John
      M.
      Bryant, Jr.


__/s/
      Monica A. Carlson_________    Senior
      Vice President and General          Counsel


Name:___
      Monica A. Carlson ___________















STATE
      OF
      TENNESSEE  )


)  ss:


COUNTY
      OF
      DAVIDSON  )





On
      this
      the _14th_ day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr., who acknowledged himself to be the Senior Vice
      President and General Counsel of **HR
      ACQUISITION I CORPORATION** ,
      a
      Maryland corporation, and that he as such officer, being authorized to do so,
      executed the foregoing instrument for the purposes contained therein on behalf
      of the said corporation.





IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.








[SEAL]     ___/s/
      Ruth Anne Caruthers______________


Notary
      Public


My
      commission expires:__08/08/2010_____














Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania


**HR
      ACQUISITION OF**           **PENNSYLVANIA,
      INC** .,           a
      Pennsylvania corporation





Witness:       By:___
      :__/s/ John M. Bryant, Jr._ ________


John
      M.
      Bryant, Jr.


_____/s/
      Monica A. Carlson ______________   Senior
      Vice President and General          Counsel


Name:____
      Monica A. Carlson ______________















STATE
      OF
      TENNESSEE  )


)  ss:


COUNTY
      OF
      DAVIDSON  )





On
      this
      the _14th day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr., who acknowledged himself to be the Senior Vice
      President and General Counsel of **HR
      ACQUISITION OF PENNSYLVANIA, INC** .,
      a
      Pennsylvania corporation, and that he as such officer, being authorized to
      do
      so, executed the foregoing instrument for the purposes contained therein on
      behalf of the said corporation.





IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.








[SEAL]     ____/s/
      Ruth Anne Caruthers ____________


Notary
      Public


My
      commission expires:_08/08/2010___











Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania





**HRT
      HOLDINGS, INC** .,
      a
      Delaware         corporation







Witness:       By:__
      :__/s/ John M. Bryant, Jr._


John
      M.
      Bryant, Jr.


______/s/
      Monica A. Carlson ______    Senior
      Vice President and General          Counsel


Name:___
      Monica A. Carlson ____________


















STATE
      OF
      TENNESSEE  )


)  ss:


COUNTY
      OF
      DAVIDSON  )





On
      this
      the _14th day of March, 2007, before me, the undersigned officer, personally
      appeared John M. Bryant, Jr., who acknowledged himself to be the Senior Vice
      President and General Counsel of **HRT
      HOLDINGS, INC** .,
      a
      Delaware corporation and that he as such officer, being authorized to do so,
      executed the foregoing instrument for the purposes contained therein on behalf
      of the said corporation.








IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.








[SEAL]     ______/s/
      Ruth Anne Caruthers _______


Notary
      Public


My
      commission expires:__08/08/2010____











Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania





**TENANT:**




**EMERITUS
      CORPORATION** ,


a
      Washington corporation





Witness:


______/s/
      Leo Watterson___________   By:__/s/
      Eric Mendelsohn __


Name:__
      Leo Watterson _________________   Eric
      Mendelsohn


Director
      of Real Estate and Legal          Affairs








STATE
      OF  Washington  )


)  ss:


COUNTY
      OF  King  )





On
      this
      the _10th day of March, 2007, before me, the undersigned officer, personally
      appeared Eric Mendelsohn who acknowledged himself to be the Director of Real
      Estate and Legal Affairs of **EMERITUS
      CORPORATION** ,
      a
      Washington corporation ,
      and
      that he as such officer, being authorized to do so, executed the foregoing
      instrument for the purposes contained therein on behalf of the said
      corporation.





IN
      WITNESS WHEREOF, I have hereunto set my hand and official seal.








[SEAL]     __/s/
      Nadia S. Reynolds______________


Notary
      Public


My
      commission expires:___06/15/2010____











Loyalton
            at Creekview
 Mechanicsburg,
            Cumberland County, Pennsylvania


**EXHIBIT
      A**





Lease
      Agreement, dated May 1, 2003, by and between HR Acquisition I Corporation,
      Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc., as lessor,
      and
      Emeritus Corporation, as lessee;





as
      amended by First Amendment to Lease Agreement, dated as of June 30, 2005, by
      and
      between HR Acquisition I Corporation, HR Acquisition of Pennsylvania, Inc.
      (f/k/a/ Capstone Capital of Pennsylvania, Inc.), and HRT Holdings, Inc., and
      Emeritus Corporation;




and
      as
      evidenced by (i) a Memorandum of a Lease Agreement, dated May 1, 2003, by and
      between Capstone Capital of Pennsylvania, Inc. and HRT Holdings, Inc., and
      Emeritus Corporation, recorded at Instrument No. 200306273 in the Office of
      the
      Recorder of Deeds for Columbia County, Pennsylvania, as amended by an Amendment
      to Memorandum of Lease Agreement, dated as of June 30, 2005, by and between
      HR
      Acquisition of Pennsylvania, Inc. (f/k/a Capstone Capital of Pennsylvania,
      Inc.), and Emeritus Corporation, recorded at Instrument No. 200508723 in the
      Office of the Recorder of Deeds for Columbia County, Pennsylvania, (ii) **a
      Memorandum of a Lease Agreement, dated April 28, 2003 and effective May 1,
      2003,
      by and between Capstone Capital of Pennsylvania, Inc. and Emeritus Corporation,
      recorded at Book 697, Page 2652 in the Office of the Recorder of Deeds for
      Cumberland County, Pennsylvania, as amended by an Amendment to Memorandum of
      Lease Agreement, dated as of June 30, 2005, by and between HR Acquisition of
      Pennsylvania, Inc. (f/k/a Capstone Capital of Pennsylvania, Inc.), and Emeritus
      Corporation, recorded at Book 720, Page 128 in the Office of the Recorder of
      Deeds for Cumberland County, Pennsylvania** ,
      (iii) a
      Memorandum of a Lease Agreement, dated April 28, 2003, effective May 1, 2003,
      by
      and between Capstone Capital of Pennsylvania, Inc. and Emeritus Corporation,
      recorded at Record Book 4921, Page 105 in the Office of the Recorder of Deeds
      for Dauphin County, Pennsylvania, as amended by an Amendment to Memorandum
      of
      Lease Agreement, dated as of June 30, 2005, by and between HR Acquisition of
      Pennsylvania, Inc. (f/k/a Capstone Capital of Pennsylvania, Inc.), and Emeritus
      Corporation, recorded at Record Book 6162, Page 406 in the Office of the
      Recorder of Deeds for Dauphin County, Pennsylvania, (iv) a Memorandum of a
      Lease
      Agreement, recorded at Lease No. 200317547 in the Office of the Recorder for
      Portage County, Ohio, as amended by an Amendment to Memorandum of Lease
      Agreement, dated as of June 30, 2005, by and between HR Acquisition I
      Corporation and Emeritus Corporation, recorded at Lease No. 200517310 in the
      Office of the Recorder for Portage County, Ohio, (v) a Memorandum of a Lease
      Agreement, dated May 1, 2003, by and between HRT Holdings, Inc. and Emeritus
      Corporation, recorded at Instrument No. 200311235 in the Office of the Clerk
      of
      the Circuit Court for Roanoke County, Virginia, as amended by an Amendment
      to
      Memorandum of Lease Agreement, dated as of June 30, 2005, by and between HRT
      Holdings, Inc. and Emeritus Corporation, recorded at Instrument No. 200511174
      in
      the Office of the Clerk of the Circuit Court for Roanoke County, Virginia,
      (vi)
      a Memorandum of a Lease Agreement, dated May 1, 2003, by and between HR
      Acquisition I Corporation (f/k/a Capstone Capital Corporation) and Emeritus
      Corporation, recorded at Book 5819, Page 2461 in the Office of the Register
      of
      Deeds for Guilford County, North Carolina, as amended by an Amendment to
      Memorandum of Lease


Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania




Agreement,
      dated as of June 30, 2005, by and between HR Acquisition I Corporation and
      Emeritus Corporation, recorded at Book 6352, Page 1327 in the Office of the
      Register of Deeds for Guilford County, North Carolina, (vii) a Memorandum of
      a
      Lease Agreement, dated May 1, 2003, by and between HRT Holdings, Inc. and
      Emeritus Corporation, recorded at Deed Book 2271, Page 474 in the Office of
      the
      Clerk of the Circuit Court for Rockingham County, Virginia, as amended by an
      Amendment to Memorandum of Lease Agreement, dated as of June 30, 2005, by and
      between HRT Holdings, Inc. and Emeritus Corporation, recorded at Deed Book
      2697,
      Page 219 in the Office of the Clerk of the Circuit Court for Rockingham County,
      Virginia, and (viii) a Memorandum of a Lease Agreement, dated May 1, 2003,
      by
      and between HRT Holdings, Inc. and Emeritus Corporation, recorded at Instrument
      No. 03-2692 in the Office of the Clerk of the Circuit Court for the City of
      Danville, Virginia, as amended by an Amendment to Memorandum of Lease Agreement,
      dated as of June 30, 2005, by and between HRT Holdings, Inc. and Emeritus
      Corporation, recorded at Instrument No. 05-3328 in the Office of the Clerk
      of
      the Circuit Court for the City of Danville, Virginia;





and
      as
      subject to (i) the Assignment of Rents and Leases, dated as of May 1, 2003,
      by
      and between HR Acquisition I Corporation, Capstone Capital of Pennsylvania,
      Inc., and HRT Holdings, Inc., and Emeritus Corporation, recorded at Instrument
      No. 200306275 in the Office of the Recorder of Deeds for Columbia County,
      Pennsylvania, (ii) the Assignment of Rents and Leases, dated April 28, 2003
      and
      effective May 1, 2003, by and between HR Acquisition I Corporation, Capstone
      Capital of Pennsylvania, Inc., and HRT Holdings, Inc., and Emeritus Corporation,
      recorded at Book 697, Page 2657 in the Office of the Recorder of Deeds for
      Cumberland County, Pennsylvania, (iii) the Assignment of Rents and Leases,
      dated
      April 28, 2003 and effective May 1, 2003, by and between HR Acquisition I
      Corporation, Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc.,
      and
      Emeritus Corporation, recorded at Record Book 4921, Page 128 in the Office
      of
      the Recorder of Deeds for Dauphin County, Pennsylvania, (iv) the Assignment
      of
      Rents and Leases, dated as of May 1, 2003, by and between HR Acquisition I
      Corporation, Capstone Capital of Pennsylvania, Inc., and HRT Holdings, Inc.,
      and
      Emeritus Corporation, recorded at Mortgage No. 200317549 in the Office of the
      Recorder for Portage County, Ohio, (v) the Assignment of Rents and Leases,
      dated
      as of May 1, 2003, by and between HR Acquisition I Corporation, Capstone Capital
      of Pennsylvania, Inc., and HRT Holdings, Inc., and Emeritus Corporation,
      recorded at Instrument No. 200311238 in the Office of the Clerk of the Circuit
      Court for Roanoke County, Virginia, (vi) the Assignment of Rents and Leases,
      dated as of May 1, 2003, by and between HR Acquisition I Corporation (f/k/a
      Capstone Capital Corporation), Capstone Capital of Pennsylvania, Inc., and
      HRT
      Holdings, Inc., and Emeritus Corporation, recorded at Book 5819, Page 2483
      in
      the Office of the Register of Deeds for Guilford County, North Carolina, and
      (vii) the Assignment of Rents and Leases, dated as of May 1, 2003, by and
      between HR Acquisition I Corporation, Capstone Capital of Pennsylvania, Inc.,
      and HRT Holdings, Inc., and Emeritus Corporation, recorded at Instrument No.
      03-2694 in the Office of the Clerk of the Circuit Court for the City of
      Danville, Virginia;





and
      as
      otherwise amended, modified, extended or assigned.


Loyalton
          at Creekview
 Mechanicsburg,
          Cumberland County, Pennsylvania