Document:

EXHIBIT 10.1

                      IN THE UNITED STATES BANKRUPTCY COURT
                          FOR THE DISTRICT OF DELAWARE

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In re:                                          )
                                                )
MARINER POST-ACUTE                              )
NETWORK, INC.,                                  )      Chapter 11
A Delaware Corporation,                         )
                                                )
                                                )      Case Nos. 00-113 (MFW)
and affiliates,                                 )      through 00-214 (MFW)
                                                )
                                                )      (Jointly Administered)
                 Debtors                        )
                                                )
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            ORDER UNDER 11 U.S.C.ss.ss.105, 363, 365 AND 1146 (c) AND
              FED. R. BANKR. P. 6004, 6006 AND 9019: (i) APPROVING
               SETTLEMENT AGREEMENT WITH SENIOR HOUSING PROPERTIES
              TRUST AND CERTAIN RELATED ENTITIES; (ii) AUTHORIZING
               THE SALE OF RIGHTS AND INTERESTS IN AND TO CERTAIN
                LEASED FACILITIES AND PERSONAL PROPERTY TO SENIOR
              HOUSING PROPERTIES TRUST FREE AND CLEAR OF ALL LIENS,
             CLAIMS, ENCUMBRANCES, AND INTERESTS; (iii) DETERMINING
               THAT SUCH SALE IS EXEMPT FROM ANY STAMP, TRANSFER,
                 RECORDING, OR SIMILAR TAX; (iv) AUTHORIZING THE
                 ASSUMPTION AND ASSIGNMENT OF CERTAIN LEASEHOLD
                   INTERESTS; AND (v) GRANTING RELATED RELIEF,
                    INCLUDING, A PROHIBITION AGAINST RECOURSE

     Upon the motion dated March 21, 2000 (the "Motion"),  of Mariner Post-Acute
Network,  Inc.  ("MPAN")  and certain  subsidiaries  which are also  debtors and
debtors-in-possession  in the above-captioned  cases (the "Subject Debtors") for
an order under 11 U.S.C.  ss.ss.105,  363, 365 and 1146(c) and Rules 6004, 6006,
and 9019 of the Federal Rules of Bankruptcy Procedure:  (i) approving Settlement
Agreement together with all appendices

<PAGE>

and exhibits1  (collectively,  the "Settlement  Agreement")  between the Subject
Debtors2  and the SNH  Entities;  (ii)  authorizing  the sale of assets free and
clear of all liens, claims, encumbrances,  and interests; (iii) determining that
the asset sale is exempt from any stamp, transfer,  recording,  or, similar tax;
(iv) authorizing the assumption and assignment or rejection of certain executory
contracts and unexpired leases;  and (v) granting related relief,  including,  a
prohibition  against recourse;  and the Court having considered the Motion;  and
upon the record in these cases; and after due deliberation thereon; and good and
sufficient cause appearing therefor; it is hereby

     FOUND THAT:3

     A.  This  Court  has   jurisdiction   over  the  Motion   pursuant   to  28
U.S.C.ss.ss.157  and 1334. Venue is proper pursuant to 28  U.S.C.ss.ss.1408  and
1409. This is a core  proceeding  under 28  U.S.C.ss.157(b)(2)(A),  (M), (N) and
(0).  The   statutory   predicates   for  the  relief   sought  herein  are  11.
U.S.C.ss.ss.105(a),  363, 365 and 1146(c) and Fed. R. Bankr. P. 6004,  6006, and
9019.

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1        All  capitalized  terns not  otherwise  defined  herein  shall have the
         meaning assigned to them in the Settlement Agreement.

2        The Subject Debtors are: Mariner Post-Acute  Network,  Inc.,  GranCare,
         Inc., AMS Properties, Inc., and GCI Health care Centers, Inc.

                                     - 2 -
<PAGE>

     B. Due and  proper  notice of the  Motion,  the  objection  period  and the
hearing thereon has been given to all interested persons, in accordance with the
Order Establishing  Notice Procedures entered in these cases, all parties to the
contracts  at the Retained  Facilities,  all state  Medicaid  agencies or fiscal
intermediaries,  all parties listed on the Subject Debtors' list of creditors in
the states in which the Retained  Facilities  are located,  all parties who have
commenced or threatened  litigation  against the Subject Debtors at the Retained
Facilities  and published in newspapers as reflected in the Motion.  No other or
further  notice is  required.  A  reasonable  opportunity  to object or be heard
regarding the relief requested in the Motion has been afforded to all interested
persons and entities.

     C. In response to the Motion and notice thereof,  the MPAN Debtors received
several  objections to the relief  sought in the Motion.  Such  objections  have
either been resolved as reflected herein,  withdrawn or overruled on the merits,
other than as to contracts  which are not being assumed or rejected  pursuant to
this Order.

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3        Findings  of  fact  shall  be  construed  as  conclusions  of  law  and
         conclusions  of law  shall  be  construed  as  findings  of  fact  when
         appropriate. See Fed. R. Bankr. P. 7052.

                                     - 3 -
<PAGE>

     D. The Subject  Debtors  have:  (i) full  corporate  power and authority to
execute the Settlement Agreement and all other documents  contemplated  thereby;
and (ii) all the  corporate  power and  authority  necessary to  consummate  the
transactions contemplated by the Settlement Agreement; no consents or approvals,
other  than  those  consents,  if any,  required  under  section  363(f)  of the
Bankruptcy  Code  are  required  for the  Subject  Debtors  to  consummate  such
transactions.

     E. The Subject Debtors have exercised  sound business  judgment in deciding
to proceed with those matters provided in the Settlement Agreement,  including a
sale (the "Asset  Sale") to the SNH  Entities of all of their  right,  title and
interest in and to the Master Lease, the Retained Facilities,  personal property
located at any of the Retained  Facilities,  assignment of the Subleases and any
other  assets  (collectively,   the  "Assets"),   and  the  acquisition  of  the
Transferred Facilities.

     F. Approval of the Motion,  Settlement  Agreement and  consummation  of the
transactions provided therein at this time is necessary,  appropriate and in the
best interests of the Subject Debtors, their creditors, and their estates.

     G. Pursuant to section 363(b) of the Bankruptcy  Code, the Subject  Debtors
have articulated good and sufficient business

                                     - 4 -
<PAGE>

justification  for  proceeding  with  those  transactions  provided  for  in the
Settlement Agreement.

     H. The  Subject  Debtors and the SNH  Entities  negotiated  the  Settlement
Agreement  in good  faith,  without  collusion,  and at  arm's  length.  The SNH
Entities are good faith purchasers,  under section 363(m) of the Bankruptcy Code
and, as such, are entitled to the protections afforded thereby.

     I.  The SNH  Entities  have  proceeded  in good  faith in all  respects  in
connection with this proceeding in that:

         1. The SNH Entities  recognized  that the Subject  Debtors were free to
deal with any other  parties  interested  in  acquiring  their  interests in the
Assets;

         2. All value to be delivered by the SNH Entities in connection with the
transactions has been disclosed; and

         3. The SNH Entities have not violated  section  363(m) by any action or
inaction.

     J. In the  absence of a stay  pending  appeal,  the SNH  Entities  shall be
deemed to be acting in good faith  within the  meaning of section  363(m) of the
Bankruptcy Code in consummating  the Settlement  Agreement and closing the Asset
Sale at any time after the entry of this Order.

                                     - 5 -
<PAGE>

     K. The transactions proposed under the Settlement Agreement constitute
the best and highest value for the Assets and for release from  obligations owed
by the Subject  Debtors to the SNH Entities  and provide a greater  recovery for
the Subject  Debtors'  creditors  than would be provided by any other  available
alternative.

     L. The value  received  by the  Subject  Debtors for the Assets is fair and
reasonable.

     M. All amounts,  if any, to be paid by the Subject Debtors  pursuant to the
Settlement  Agreement constitute  administrative  expenses under sections 503(b)
and 507(a)(1) of the Bankruptcy Code and are immediately  payable,  if any, when
any of the Subject  Debtors'  obligations  arise under the Settlement  Agreement
without further order of the Court.

     N. The Subject  Debtors are hereby  authorized  to sell the Assets free and
clear of all liens,  claims,  encumbrances,  rights of first  refusal  and other
interests  because  each  entity  with a  security  interest  in the  Assets has
consented to, or is deemed to have consented to, the sale of such property, each
such interest is a lien and the value of the  Transferred  Facilities is greater
than the aggregate value of all liens on such property,  or each entity could be
compelled in a legal or

                                     - 6 -
<PAGE>

equitable proceeding to accept a money satisfaction of such interest,  including
the acceptance of substitute collateral.

     O. The Subject Debtors have good title to the Assets and, accordingly,  the
transfer of the Assets to the SNH  Entities  pursuant to the Asset Sale shall be
and hereby is deemed to be a legal, valid and effective transfer.

     P. The transfer of the Assets shall be legal, valid or effective  transfers
of property of the Subject  Debtors'  estates to the SNH Entities and, except as
provided herein with respect to certain  prospective  tax liens,  the Asset Sale
shall  be  free  and  clear  of  any  and  all  liens,  claims,  interests,  and
encumbrances under section 363(f) of the Bankruptcy Code.

     Q.  Consummation  of the Asset Sale does not and shall not  subject the SNH
Entities to any debts, liabilities, obligations,  commitments,  responsibilities
or claims of any kind or nature whatsoever, whether known or unknown, contingent
or otherwise, existing as of the date hereof or hereafter arising, of or against
any of the Subject Debtors,  any affiliate of the Subject Debtors, or any person
by reason of such transfers and assignments under the laws of the United States,
any  state,  territory  or  possession  thereof  or  the  District  of  Columbia
applicable to such transactions.

                                     - 7 -
<PAGE>

     R. The sale of the Assets to the SNH  Entities  does not  constitute  a sub
rosa chapter 11 plan because the sale does not propose to:

         1. impair or restructure existing debt or equity interests;

         2.  impair or  circumvent  creditors'  voting  rights  under any future
chapter 11 plan(s);

         3. circumvent chapter 11 safeguards such as disclosure requirements; or

         4. classify claims or extend debt maturities.

     S. The SNH Entities do not  constitute  a successor to the Subject  Debtors
because:

         1. Other than as explicitly set forth in the Settlement Agreement,  the
SNH  Entities  are not  expressly  or  impliedly  agreeing  to assume any of the
Subject Debtors' debts;

         2. The  transaction  does not amount to a  consolidation,  merger or de
facto merger of Subject Debtors and the SNH Entities;

         3. The SNH  Entities  are not  merely  a  continuation  of the  Subject
Debtors; and

                                     - 8 -
<PAGE>

         4. The  transaction is not being entered into  fraudulently or in order
to escape liability from the Subject Debtors' debts.

     T. The  Subject  Debtors  have  demonstrated  that (i) it is an exercise of
their  sound  business  judgment  to assume the  Subleases  and Master  Lease as
specified in the Settlement Agreement, and (ii) the assumption and assignment of
the Subleases and the Master Lease as specified in the  Settlement  Agreement is
in the best interests of the Subject Debtors, their estates and their creditors.

     U. The SNH Entities have cured,  or have provided  adequate  assurance that
they will promptly  cure, any default of any Sublease to be assumed and assigned
in  accordance  with the  procedures  hereunder,  within the  meaning of section
365(b)(1)(A) of the Bankruptcy Code.

     V. The SNH Entities have  provided  compensation  or adequate  assurance of
compensation  to any  party  other  than  the  Subject  Debtors  for any  actual
pecuniary  loss to such party  resulting from a default prior to the date hereof
under any of the  Subleases  to be assumed  in  accordance  with the  procedures
hereunder, within the meaning of section 365(b)(1)(B) of the Bankruptcy Code.

                                     - 9 -
<PAGE>

     W. The SNH Entities have provided adequate  assurance of future performance
of the  Subleases to be assumed and assigned in accordance  with the  procedures
hereunder within the meaning of section 365(b)(1)(C) of the Bankruptcy Code.

     X. Pursuant to section 363(b) of the Bankruptcy  Code, the Subject  Debtors
have articulated good and sufficient business  justification for the Asset Sale.
As set forth in the  Re-Notice of Hearing dated April 4, 2000 the decision as to
assumption and assignment of the Contracts or the rejection  thereof has not yet
been made by the Subject  Debtors and SNH  Entities.  That portion of the Motion
dealing with assumption and assignment of Contracts,  or rejection thereof other
than as to the Master Lease and Subleases, will be resolved by separate order at
a later date.

     Y. All of the  provisions  of this  order  are  nonseverable  and  mutually
dependent.

     Z. The  transfer  of the  Assets  free  and  clear of  liens,  claims,  and
interests as provided for in this order is appropriate  under the  circumstances
because (a) such liens,  claims, and interests are subject to bona fide dispute;
(b) the value to be  received by the Subject  Debtors,  including  all right and
title to the Transferred Facilities exceeds the aggregate

                                     - 10 -
<PAGE>

value of such liens, claims, encumbrances and interests; (c) the holders of such
liens,  claims,  encumbrances and interests have consented to such transfer;  or
(d) (i) the holders of interests and (ii)  non-debtor  parties to the Settlement
Agreement  which did not object,  or which  withdrew  their  objections,  to the
Motion  are  deemed to have  consented  pursuant  to  section  363(f)(2)  of the
Bankruptcy  Code.  Those (i) holders of interests  and (ii)  non-debtor  parties
which did not object fall within one or more of the other subsections of section
363(f) of the  Bankruptcy  Code and are  adequately  protected  by having  their
interests, if any, attach to the Transferred Facilities.

     AA. The sale to the SNH  Entities  of the Assets is a  prerequisite  to the
Subject  Debtors'  ability  to  confirm  and  consummate  a  plan  or  plans  of
reorganization  or liquidation.  The Asset Sale is a sale in  contemplation of a
plan and, and,  accordingly,  is a transfer  pursuant to Section  1146(c) of the
Bankruptcy  Code, which shall not be taxed under any law imposing a stamp tax or
similar tax.

         IT IS THEREFORE ORDERED, ADJUDGED AND DECREED THAT:

         1. The Motion and the relief sought  therein is granted in all respects
and the terms and conditions of the  Settlement  Agreement,  annexed  thereto as
Exhibit A, are approved.

                                     - 11 -
<PAGE>

         2. Any objections to the Motion or the relief requested therein,  other
than as to contracts  which are not being  assumed or rejected  pursuant to this
Order,  that have not been  withdrawn  with  prejudice,  waived or settled,  are
overruled on the merits.

         3.  Pursuant  to section  363(b) of the  Bankruptcy  Code,  the Subject
Debtors  are hereby  authorized  and  directed  to  consummate  the Asset  Sale,
pursuant to and in accordance  with the terms and  conditions of the  Settlement
Agreement.

         4. The Subject  Debtors are  authorized  to execute  and  deliver,  and
empowered to perform under, consummate and implement,  the Settlement Agreement,
together with all  additional  instruments  and documents that may be reasonably
necessary or desirable to implement the  Settlement  Agreement,  and to take all
further  actions as may  reasonably  be  requested  by the SNH  Entities for the
purpose of assigning,  transferring,  granting,  conveying and conferring to the
SNH  Entities,  or  reducing  to  possession  all  of the  Assets,  or as may be
necessary or appropriate to the  performance of the  obligations as contemplated
by the Settlement Agreement.

         5. Pursuant to sections 105(a) and 363(f) of the Bankruptcy  Code, upon
the closing under the Settlement

                                     - 12 -
<PAGE>

Agreement,  the SNH Entities shall acquire all right,  title and interest in the
Assets.  The transfer of the Assets pursuant to the Asset Sale shall be free and
clear of all  mortgages,  security  interests,  conditional  sale or other title
retention  agreements,   pledges,  liens,  judgments,   demands,   encumbrances,
constructive   or  resulting   trusts,   right  to  future  income,   easements,
restrictions,  rights of first refusal or charges of any kind or nature, if any,
including,  but not limited to, any restriction on the use, voting, transfer, or
other exercise of any attributes of ownership (collectively,  "Interests"),  and
free and clear of all debts arising in any way in  connection  with any acts, or
failures to act, of the Subject Debtors or the Subject Debtors'  predecessors or
affiliates,  any claims (as that term is defined in the Code),  any  Pre-Closing
Obligation's or otherwise, including obligations,  demands, guaranties, options,
rights, contractual commitments, restrictions, interests and matters of any kind
and nature,  whether  arising prior to or  subsequent  to the Effective  Time or
commencement of these cases,  and whether  imposed by agreement,  understanding,
law, equity or otherwise (collectively,  the "Claims"),  with all such Interests
and  Claims  to  attach  to the  Transferred  Facilities  in the  order of their
priority including, without limitation, any claim or interest of the San Joaquin
County Tax Collector, with the same

                                     - 13 -
<PAGE>

validity,  force and effect which they now have as against the Subject  Debtors,
subject to any claims and defenses the Subject  Debtors may possess with respect
thereto.

         6. Any currently  existing  prospective liens for taxes due for periods
from and after the date  hereof  shall  remain  attached to and be a lien on the
Retained Facilities.

         7.  Neither  the  purchase of the Assets by the SNH  Entities,  nor the
subsequent  operation by the SNH Entities of any business previously operated by
the Subject Debtors,  will cause the SNH Entities to be deemed, under any theory
of law or equity,  a successor in any respect to the Subject  Debtors'  business
within the meaning of any revenue,  pension,  ERISA, tax, labor,  environmental,
Medicare, Medicaid or other health care reimbursement law, rule or regulation or
under any personal injury,  tort, contract,  medical  malpractice,  fiduciary or
product  liability  law with  respect to the Subject  Debtors'  liability or any
other law, rule or regulation  and the SNH Entities  shall not be treated either
as a Subject  Debtor nor as a successor to the Subject  Debtor and shall have no
liability therefore.

         8. The Subject  Debtors are  authorized  to proceed with those  matters
identified in the Settlement Agreement and

                                     - 14 -
<PAGE>

Interim  Management   Agreement.   The  Subject  Debtors  shall  maintain  their
respective  Permits and  Provider  Agreements  in good  standing for each of the
Retained  Facilities,  for which they shall continue to be  responsible  for the
operations  thereof.  All  payments  due from Third  Party  Payors for  services
rendered by the Retained  Facilities on and after the  Effective  Time are to be
received by the Subject  Debtors and delivered to the SNH  Entities.  Such funds
shall not be subject to Interests or Claims  against any of the Subject  Debtors
or the Subject Debtors' predecessors or affiliates or otherwise.

         9. To the greatest  extent allowed by applicable  law, the SNH Entities
are not assuming nor shall they in any way whatsoever be liable or  responsible,
as successor or otherwise,  for any  liabilities,  debts or  obligations  of the
Subject  Debtors  their  affiliates,  subsidiaries  or  predecessors  or for any
liabilities,  debts or obligations in any way whatsoever  relating to or arising
from the Assets or the Subject Debtors' operations or use of the Assets prior to
or  subsequent  to the  consummation  of the  transactions  contemplated  by the
Settlement Agreement.

         10. No person or entity,  including,  without limitation,  any federal,
state or local governmental agency, department or instrumentality,  shall assert
by suit or otherwise

                                     - 15 -
<PAGE>

against the SNH Entities or their successors in interest any Claims or Interests
that  they had,  have or may have  against  any of the  Subject  Debtors,  their
affiliates,  subsidiaries or predecessors,  or any liability, debt or obligation
relating  to or  arising  from  the  Assets,  or  the  Subject  Debtors',  their
affiliates',  subsidiaries'  or  predecessors'  operations  or use of the Assets
before  or  after  the  consummation  of the  transactions  contemplated  by the
Settlement  Agreement,  and all persons and  entities are hereby  enjoined  from
asserting  against  the SNH  Entities  in any way any  such  Claims,  Interests,
liabilities, debts or obligations.

         11. The transfer of the Assets pursuant to the Asset Sale are transfers
pursuant to section 1146(c) of the Bankruptcy Code, and, accordingly,  shall not
be taxed under any law imposing a stamp tax or similar tax.

         12. All of the Subject Debtors' interests in the Assets shall be, as of
the Effective  Time,  transferred to and vested in the SNH Entities.  Subject to
the fulfillment of the terms and conditions of the Settlement  Agreement,  as of
the  Effective  Time,  this  Order will be  considered  and  constitute  for all
purposes  a full and  complete  general  quitclaim  assignment,  conveyance  and
transfer of the Assets and/or a quitclaim deed

                                     - 16 -
<PAGE>

transferring  the Subject  Debtors'  title and interest in the Assets to the SNH
Entities. All governmental  recording offices and all other parties,  persons or
entities are hereby directed to accept this Order as such a quitclaim assignment
and/or  quitclaim  deed,  and, if  necessary,  this Order shall be accepted  for
recordation  on or after the  Effective  Time,  as  conclusive  evidence  of the
transfer of title to the Assets  conveyed to SNH Entities at the Effective Time.
All Claims or Interests  of record  shall be  forthwith  removed and stricken as
against the Assets.

         13.  All of the  SNH  Entities'  interests  in the  real  and  personal
property related to the Transferred  Facilities,  including without  limitation,
all  furniture,   fixtures,   furnishings,   equipment,  and  intangibles,  (the
"Transferred  Assets")  shall be, as of the Effective  Time,  transferred to and
vested in the Subject Debtors or their  designee.  Subject to the fulfillment of
the terms and conditions of the Settlement Agreement,  as of the Effective Time,
this  Order  will be  considered  and  constitute  for all  purposes  a full and
complete  general   quitclaim   assignment,   conveyance  and  transfer  of  the
Transferred  Assets and/or a quitclaim deed transferring the SNH Entities' title
and interest in the Transferred Assets to the Subject Debtors or their designee.
All governmental recording

                                     - 17 -
<PAGE>

offices and all other parties, persons or entities are hereby directed to accept
this  Order as such a  quitclaim  assignment  and/or  quitclaim  deed,  and,  if
necessary,  this  order  shall be  accepted  for  recordation  on or  after  the
Effective  Time,  as  conclusive  evidence  of  the  transfer  of  title  to the
Transferred  Assets  conveyed  to the Subject  Debtors or their  designee at the
Effective  Time.  Any  lien or  claim  of the SNH  Entities  on the  Transferred
Facilities'  accounts  receivable  generated  by the  Subject  Debtors  shall be
released as of the Effective Time.

         14. Except as otherwise  provided in the Interim  Management  Agreement
and the Interim Occupancy  Agreement,  upon the Effective Time, the SNH Entities
shall be granted immediate and unfettered access to the Retained  Facilities and
the Assets.  Except as  otherwise  provided  in the  Settlement  Agreement,  the
Subject  Debtors and their  respective  officers,  agents and employees who have
access to and control over any portion of the Retained Facilities and the Assets
shall cease exercising  control over the Assets upon the Effective Time and such
parties are enjoined after the Effective Time from exercising any control and/or
interfering  with the SNH Entities' use,  peaceful  enjoyment and control of the
Assets without the SNH Entities consent.

                                     - 18 -
<PAGE>

         15.  Upon the  Effective  Time,  the Subject  Debtors  shall be granted
immediate  and  unfettered  access  to the  Transferred  Facilities.  Except  as
otherwise  provided in the  Settlement  Agreement,  the SNH  Entities  and their
respective  officers,  agents and  employees who have access to and control over
any portion of the Transferred  Facilities shall cease  exercising  control over
the Transferred Facilities upon the Effective Time and such parties are enjoined
after the Effective Time from exercising any control and/or interfering with the
Subject  Debtors'  use,  peaceful  enjoyment  and  control  of  the  Transferred
Facilities without the Subject Debtors' consent.

         16.  No  bulk  sales  law or any  similar  law of any  state  or  other
jurisdiction  shall apply in any way to the Subject  Debtors' sale of the Assets
to the SNH Entities.

         17. The Subject Debtors are hereby  authorized to assume and assign the
unexpired  Subleases and the Master Lease (the "Assumed and Assigned Leases") in
accordance  with this Order. As the Subject Debtors are the Sublessor or the SNH
Entities are the lessor in the case of the Master Lease no cure payment is due.

         18. On and after  the  Effective  Time,  each of the  Subject  Debtors'
creditors is directed to execute such documents

                                     - 19 -
<PAGE>

and take all other  actions as may be necessary  to release its  Interests in or
Claims,  if any,  against the Assets,  as such Interests or Claims may have been
recorded or may otherwise exist.

         19. Each non-debtor  party to the Assumed and Assigned Leases is barred
from  asserting  against the SNH Entities any default as of the Effective  Time,
and all such  defaults  shall be deemed to have been  cured as of the  Effective
Time.

         20. This Order (a) is and shall be effective as a  determination  that,
on and as of the Effective  Time, all Interests or Claims existing as and to the
Assets before the Effective Time have been unconditionally released,  discharged
and  eliminated  (with  such  Interests  or Claims to attach to the  Transferred
Facilities,  or to  continue in the Subject  Debtors'  other  assets that do not
comprise a part of the Assets, as provided for herein),  and that the conveyance
of the  Assets  described  herein  has been  effected;  and (b) is and  shall be
binding upon and govern the acts of all entities  including  without  limitation
all filing agents, filing officers, title agents, title companies,  recorders of
mortgages,  recorders of deeds,,  registrars  of deeds,  registrars  of patents,
trademarks or other intellectual property, administrative agencies,

                                     - 20 -
<PAGE>

governmental  departments,  secretaries of federal,  state and local officials ,
and all other  persons and entities who may be required by operation of law, the
duties of their office, or contract,  to accept, file, register otherwise record
or release any  documents  or  instruments,  or who maybe  required to report or
insure any title or state of title in or to any of the Assets.

         21. To the greatest  extent allowed by applicable law, the SNH Entities
are not acquiring or assuming,  and the consummation of the Asset Sale shall not
subject the SNH  Entities to any debts,  liabilities,  obligation,  commitments,
responsibilities  or claims of any kind or nature  whatsoever,  whether known or
unknown,  contingent or  otherwise,  existing as of the date hereof or hereafter
arising,  of or against  the  Subject  Debtors,  any  affiliate  of the  Subject
Debtors, or any other person by reason of such transfer, assignment and delivery
under the laws of the United States, any state,  territory or possession thereof
or the District of Columbia, applicable to such transactions.

         22. If any  person or entity  that has filed  financing  statements  or
other documents or agreements evidencing Interests or Claims on or in the Assets
shall not have delivered to the Subject  Debtors  before the Effective  Time, in
proper form for

                                     - 21 -
<PAGE>

filing  and  executed  by  the  appropriate  parties,   termination  statements,
instruments  of  satisfaction,  releases  of all  Interests  or  Claims or other
interests that the person or entity has with respect to the Assets,  the Subject
Debtors are hereby authorized to execute and file such statements,  instruments,
releases  and other  documents on behalf of the person or entity with respect to
the Assets.

         23. All  individuals or entities who are presently,  or on or as of the
Effective  Time may be, in  possession  of some or all of the  Assets are hereby
directed  to  surrender  possession  of said  Assets to the SNH  Entities on the
Effective Time.

         24.  Nothing  contained in any chapter 11 plan confirmed in these cases
or the order of  confirmation  confirming  any such chapter 11 plan or any other
order entered in these cases shall conflict with or derogate from the provisions
of the Settlement Agreement or the terms of this Order.

         25. The Settlement Agreement and the transactions  contemplated thereby
shall be specifically  performable and enforceable against and binding upon, and
not subject to rejection or avoidance  by, the Subject  Debtors or any chapter 7
or chapter 11 trustee of the Subject Debtors and their respective estates.

                                     - 22 -
<PAGE>

         26. The Settlement  Agreement and any related agreements,  documents or
other  instruments  may be  modified,  amended or  supplemented  by the  parties
thereto in accordance with the terms thereof without further order of the Court,
provided that any such modification, amendment or supplement is not material.

         27.  The  SNH  Entities  are  good-faith  purchasers,  entitled  to the
protections  of  section  363(m) of the  Bankruptcy  Code in the event that this
Order is revised or modified on appeal;  provided,  however, that nothing herein
shall be construed to release,  waive,  or otherwise  modify  claims the Subject
Debtors or the SNH Entities may have against each other relating to transactions
or occurrences to be consummated under the Settlement Agreement, which are fully
preserved.

         28.  The  consideration  provided  by the SNH  Entities  for the Assets
pursuant to the Settlement  Agreement  shall be deemed to constitute  reasonably
equivalent value and fair  consideration  under the Bankruptcy Code or under the
laws of the United States, any state,  territory,  possession or the District of
Columbia.

         29. The Asset Sale is fair and  reasonable and may not be avoided under
section 363(n) of the Bankruptcy Code.

                                     - 23 -
<PAGE>

         30. The failure specifically to include any particular provision of the
Settlement   Agreement   in  this  Order  shall  not   diminish  or  impair  the
effectiveness  of such  provision,  it being the  intent  of the Court  that the
Settlement Agreement be authorized and approved in its entirety.

         31. This Order shall be  effective  and  enforceable  immediately  upon
entry, notwithstanding Rule 6004(g).

         32. This Court shall retain jurisdiction to decide any disputes arising
between the SNH Entities, the Subject Debtors or any other person or entity with
respect to the Settlement Agreement or this Order.

Dated:         May 10, 2000
               Wilmington, Delaware

                                               /s/ Mary F. Walrath
                                               Mary F. Walrath
                                               U.S. Bankruptcy Judge

                                     - 24 -EXHIBIT 10.2

                                                     As of June 30, 2000

Senior Housing Properties Trust
SPTMNR Properties Trust
Five Star Quality Care, Inc.
Shopco - AZ, LLC
Shopco - LA, LLC
Shopco - Colorado, LLC
Shopco - WI, LLC
c/o Senior Housing Properties Trust
400 Centre Street
Newton, MA  02458
Attention:  Treasurer

         Re:      Settlement  Agreement  dated March 20,  2000 (the  "Settlement
                  Agreement"),  among Senior Housing  Properties  Trust,  SPTMNR
                  Properties  Trust,  Five Star Quality Care,  Inc.,  SHOPCO-AZ,
                  LLC, SHOPCO-CA,  LLC,  SHOPCO-COLORADO,  LLC,  SHOPCO-WI,  LLC
                  (collectively,   the  "SNH  Entities"),   Mariner  Post  Acute
                  Network,  Inc.,  Grancare,  Inc., AMS Properties,  Inc. and GC
                  Health Care Centers Inc. (collectively the "Mariner Entities")

Dear Ladies and Gentlemen:

         Reference  is made to that  certain  Settlement  Agreement  referred to
above,  pursuant to which the SNH Entities and the Mariner  Entities have agreed
to the  settlement  of certain  claims.  Capitalized  terms used herein  without
definition still have the meanings ascribed thereto in the Settlement Agreement.

         The parties hereto hereby agree as follows:

         1. The term Retained  Facilities in the first  sentence of Sections 3.2
and 3.3 of the Settlement Agreement shall include the Subleased Facilities,  but
only to the  extent  that any such  tangible  or  intangible  personal  property
located at or used in connection  with the Subleased  Facilities is owned by AMS
Properties of GCIHCC.
<PAGE>
May 24, 2000
Page 2

         2. The term Retained  Facilities  used in Section 9.4 of the Settlement
Agreement shall include the Subleased Facilities.

         3. The term Retained  Facility in the first  sentence of Section 9.5 of
the Settlement Agreement shall include the Subleased Facilities.

         4. The terms Retained  Facility and Retained  Facilities in Section 9.9
of the Settlement  Agreement shall include the Subleased  Facilities  (except to
the extent otherwise provided therein).

         5. The terms Retained Facility and Retained  Facilities in Section 9.14
(iii) and (v) of the Settlement Agreement shall include the Subleased Facilities
(except that the Mariner Entities make no  representation or warranty in Section
9.14 (iii) with respect to options or rights of first refusal,  if any, that may
be expressly provided for in the Fresno Sublease).

         6. The term  Retained  Facilities  in  Section  9.17 of the  Settlement
Agreement  shall include the Subleased  Facilities,  but only to the extent that
any of the Mariner Entities have knowledge with respect thereto.

         Notwithstanding  the  foregoing,  subject  to,  and upon the  terms and
conditions  set forth in Section 9.1 of the  Settlement  Agreement,  each of the
Mariner Entities, jointly and severally,  represent and warrant that the Mariner
Entities  have not received  from any  Subtenant  any amounts  payable under its
Sublease  with  respect to prepaid  expenses,  real  estate  charges,  municipal
charges,  or  other  related  items of  expense  attributable  to any  Subleased
Facility  allocable to the period prior to the  Effective  Time that the Mariner
Entities  have  failed  to apply to the  payment  thereof.  From and  after  the
Effective Date, the Mariner  Entities shall remit to the SNH Entities any amount
collected by the Mariner  Entities from any Subtenant  for  obligations  arising
after the Effective Date.

         7. The terms Retained Facilities and Retained Facility in Section 9.18,
10.4,  10.5,  11.2  and  12.5 of the  Settlement  Agreement  shall  include  the
Subleased Facilities.

         8. The parties hereby  acknowledge the receipt by AMS Properties,  Inc.
of the June 14, 2000 letter from Covenant Care,  the subtenant  under the Fresno
Sublease,  purporting to renew the
<PAGE>
May 24, 2000
Page 3

Fresno  Sublease.  The  receipt of this  letter  shall not be deemed a breach of
Section 9.19 of the Settlement Agreement.

         9. The  parties  hereto  covenant  and agree  that  each of them  shall
execute,  acknowledge  and deliver (or cause to be  executed,  acknowledged  and
delivered),  from time to time at the  request  of the other  party and  without
further  consideration,  all such further  instruments of conveyance,  transfer,
assignment and further assurance,  and perform or cause to be performed all such
other acts as may be reasonably  required in order to confirm and effectuate the
transactions contemplated by the Settlement Agreement.

                                   Sincerely,

                                   SENIOR HOUSING PROPERTIES TRUST,
                                   a Maryland real estate investment trust

                                   By: /s/ Ajay Saini
                                       Its:

                                   SPTMNR PROPERTIES TRUST,
                                   a Maryland real estate investment trust

                                   By: /s/ Ajay Saini
                                       Its:

                                   FIVE STAR QUALITY CARE, INC.,
                                   a Delaware corporation

                                   By: /s/ Evrett Benton
                                       Its:

                                   SHOPCO-AZ, LLC,
                                   a Delaware limited liability company

                                       By:  Its Sole Member
                                            SHOPCO Holdings, Inc.

                                            By: /s/ Ajay Saini
                                                Ajay Saini, Treasurer
<PAGE>
May 24, 2000
Page 4

                                   SHOPCO-CA, LLC,
                                   a Delaware limited liability company

                                       By:  Its Sole Member
                                            SHOPCO Holdings, Inc.

                                            By: /s/ Ajay Saini
                                                Ajay Saini, Treasurer

                                   SHOPCO-COLORADO, LLC,
                                   a Delaware limited liability company

                                       By:  Its Sole Member
                                            SHOPCO Holdings, Inc.

                                            By: /s/ Ajay Saini
                                                Ajay Saini, Treasurer

                                   SHOPCO-WI, LLC,
                                   a Delaware limited liability company

                                       By:  Its Sole Member
                                            SHOPCO Holdings, Inc.

                                            By: /s/ Ajay Saini
                                                Ajay Saini, Treasurer

<PAGE>
May 24, 2000
Page 5

                                   MARINER POST-ACUTE NETWORK, INC.
                                   (f/k/a Paragon Health Network,
                                   Inc.), a Delaware corporation

                                   By:   /s/ Todd Andrews
                                         Name:
                                         Its:

                                   GRANCARE, INC.
                                   (f/k/a New GranCare, Inc.),
                                   a Delaware corporation

                                   By:  /s/ Todd Andrews
                                        Name:
                                        Its:

                                   AMS PROPERTIES, INC.,
                                   a Delaware corporation

                                   By:  /s/ Todd Andrews
                                        Name:
                                        Its:

                                   GCI HEALTH CARE CENTERS, INC,
                                   a Delaware corporation

                                   By:   /s/ Todd Andrews
                                         Name:

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