Document:

<PAGE>
                                                                     EXHIBIT 4.7

                                                               EXECUTION VERSION

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                           Dated as of April 22, 2004

                                      among

                       Extendicare Health Services, Inc.,

          The Subsidiary Guarantors from time to time party hereto, and

            Lehman Brothers Inc., on behalf of the Initial Purchasers

<PAGE>

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

            This Exchange and Registration Rights Agreement (this "Agreement")
is made and entered into as of April 22, 2004 by and among Extendicare Health
Services, Inc., a Delaware corporation (the "Company"), the Subsidiary
Guarantors (as defined herein) and Lehman Brothers Inc., on behalf of itself and
Piper Jaffray & Co. and ABN AMRO Incorporated (collectively, the "Initial
Purchasers").

            This Agreement is made pursuant to the Purchase Agreement, dated
April 15, 2004 (the "Purchase Agreement"), by and among the Company, the
Existing Subsidiary Guarantors (as defined herein) and the Initial Purchasers,
which provides for the sale by the Company to the Initial Purchasers of
$125,000,000 aggregate principal amount of the Company's 6 7/8% Senior
Subordinated Notes due 2014 (the "Notes"). The Notes are, and the Exchange Notes
(as defined herein) will be, guaranteed on a senior subordinated basis by the
Subsidiary Guarantors (as defined herein). In order to induce the Initial
Purchasers to purchase the Notes, the Company and the Existing Subsidiary
Guarantors have agreed to provide the registration rights set forth in this
Agreement. The execution and delivery of this Agreement is a condition to the
obligations of the Initial Purchasers set forth in Section 7 of the Purchase
Agreement.

            The parties hereby agree as follows:

      SECTION 1. DEFINITIONS

            As used in this Agreement, the following capitalized terms shall
have the following meanings:

            Additional Interest: As defined in Section 5(a) hereof.

            Additional Subsidiary Guarantor: Any subsidiary of the Company that
executes a Guarantee under the Indenture after the date of this Agreement.

            Advice: As defined in Section 6(e) hereof.

            Blackout Period: As defined in Section 5(a) hereof.

            Blue Sky Application: As defined in Section 8(a) hereof.

            Broker-Dealer: Any broker or dealer registered under the Exchange
Act.

            Closing Date: The date of this Agreement.

            Commission: The U.S. Securities and Exchange Commission.

            Company: As defined in the preamble hereto.

                                       2
<PAGE>

            Consummate: A Registered Exchange Offer shall be deemed
"Consummated" for purposes of this Agreement upon the occurrence of (i) the
filing and effectiveness under the Securities Act of the Exchange Offer
Registration Statement relating to the Exchange Notes to be issued in the
Exchange Offer, (ii) the maintenance of such Registration Statement continuously
effective and the keeping of the Exchange Offer open for a period not less than
the minimum period required pursuant to Section 3(b) hereof, and (iii) the
delivery by the Company to the Registrar under the Indenture of Exchange Notes
in the same aggregate principal amount as the aggregate principal amount of
Notes that were tendered by Holders thereof pursuant to the Exchange Offer.

            Damages Payment Date: With respect to the Notes, each Interest
Payment Date.

            Exchange Act: The U.S. Securities Exchange Act of 1934, as amended.

            Exchange Notes: The Company's 6 7/8% Senior Subordinated Notes due
2014 to be issued pursuant to the Indenture in the Exchange Offer, together with
the related Guarantees.

            Exchange Offer: The registration by the Company under the Securities
Act of the Exchange Notes pursuant to a Registration Statement pursuant to which
the Company offers the Holders of all outstanding Transfer Restricted Securities
the opportunity to exchange all such outstanding Transfer Restricted Securities
held by such Holders for Exchange Notes in an aggregate principal amount equal
to the aggregate principal amount of the Transfer Restricted Securities validly
tendered in such exchange offer by such Holders.

            Exchange Offer Registration Statement: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

            Existing Subsidiary Guarantors: The various Subsidiary Guarantors
signatory to the Indenture as of the date hereof.

            Guarantees: Guarantees by the Subsidiary Guarantors of the Company's
obligations under the Notes, the Exchange Notes and the Indenture.

            Holder: As defined in Section 2(b) hereof.

            Indenture: The Indenture, dated as of the date hereof, among the
Company, the Existing Subsidiary Guarantors and U.S. Bank, N.A., as trustee (the
"Trustee"), pursuant to which the Notes and the Exchange Notes are to be issued,
as such Indenture may be amended or supplemented from time to time in accordance
with the terms thereof.

            Initial Purchasers: As defined in the preamble hereto.

            Interest Payment Date: As defined in the Indenture and the Notes.

                                       3
<PAGE>

            Marketing Materials: As defined in Section 8(a) hereof.

            NASD: National Association of Securities Dealers, Inc.

            Notes: As defined in the preamble hereto.

            Person: An individual, partnership, corporation, limited liability
company, unincorporated organization, association, joint-stock company, trust,
joint venture, government or any agency or political subdivision thereof or any
other entity.

            Prospectus: The prospectus included in a Registration Statement as
amended or supplemented by any prospectus supplement and by all other amendments
thereto, including post-effective amendments, and all material incorporated by
reference into such Prospectus.

            Purchase Agreement: As defined in the preamble hereto.

            Record Holder: With respect to any Damages Payment Date relating to
Notes, each Person who is a Holder of Notes on the record date with respect to
the Interest Payment Date on which such Damages Payment Date shall occur.

            Registration Default: As defined in Section 5(a) hereof.

            Registration Statement: Any Registration Statement of the Company
and the Subsidiary Guarantors relating to (a) an offering of Exchange Notes
pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, which is
filed pursuant to the provisions of this Agreement, in each case including the
Prospectus included therein, all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by
reference therein.

            Securities Act: The U.S. Securities Act of 1933, as amended.

            Shelf Filing Deadline: As defined in Section 4(a) hereof.

            Shelf Registration Period: As defined in Section 4(a) hereof.

            Shelf Registration Statement: As defined in Section 4(a) hereof.

            Subsidiary Guarantors: The Additional Subsidiary Guarantors and the
Existing Subsidiary Guarantors.

            TIA: The U.S. Trust Indenture Act of 1939 (15 U.S.C. Section
77aaa-77bbbb) as in effect on the date of the Indenture.

            Transfer Restricted Securities: Each Note or Exchange Note
(including the related Guarantees), as applicable, until the earliest to occur
of (a) the date on which

                                       4
<PAGE>

such Note is exchanged by a person other than a Broker-Dealer in the Exchange
Offer in exchange for an Exchange Note, so long as such person is not prohibited
from reselling such Exchange Notes to the public without delivering a prospectus
and the Prospectus in the Exchange Offer Registration Statement is not
sufficient for such purpose, (b) following the exchange by a Broker-Dealer in
the Exchange Offer of a Note for an Exchange Note, the date on which that
Exchange Note is sold to a purchaser who receives from that Broker-Dealer on or
prior to the date of such sale a copy of the Prospectus contained in the
Exchange Offer Registration Statement, (c) the date on which such Note or
Exchange Note has been effectively registered under the Securities Act and
disposed of in accordance with a Shelf Registration Statement and (d) the date
on which such Note is sold by the Holder pursuant to Rule 144 under the
Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act.

            Underwritten Registration or Underwritten Offering: A registration
in which securities of the Company are sold to an underwriter for reoffering to
the public.

      SECTION 2. SECURITIES SUBJECT TO THIS AGREEMENT

            (a) Transfer Restricted Securities. The securities entitled to the
benefits of this Agreement are the Transfer Restricted Securities.

            (b) Holders of Transfer Restricted Securities. A Person is deemed to
be a holder of Transfer Restricted Securities (each, a "Holder") whenever such
Person owns Transfer Restricted Securities.

      SECTION 3. REGISTERED EXCHANGE OFFER

            (a) Unless the Exchange Offer shall not be permissible under
applicable law or Commission policy (after the procedures set forth in Section
6(a) below have been complied with), the Company and the Subsidiary Guarantors
shall (i) use their reasonable best efforts to cause to be filed with the
Commission as soon as practicable after the Closing Date, but in no event later
than 90 days after the Closing Date, a Registration Statement under the
Securities Act relating to the Exchange Notes and the Exchange Offer, (ii) use
their reasonable best efforts to cause such Registration Statement to be
declared effective on or prior to 150 days after the Closing Date, (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such
Registration Statement as may be necessary in order to cause such Registration
Statement to become effective, (B) if applicable, file a post-effective
amendment to such Registration Statement pursuant to Rule 430A under the
Securities Act and (C) cause all necessary filings in connection with the
registration and qualification of the Exchange Notes to be made under the blue
sky laws of such jurisdictions as are necessary to permit Consummation of the
Exchange Offer and (iv) upon the effectiveness of such Registration Statement,
commence the Exchange Offer. The Exchange Offer shall be on the appropriate form
permitting registration of the Exchange Notes to be offered in exchange for the
Transfer Restricted Securities and to permit resales of Exchange Notes held by
Broker-Dealers as contemplated by Section 3(c) below.

                                       5
<PAGE>

            (b) The Company and the Subsidiary Guarantors shall use their
reasonable best efforts to cause the Exchange Offer Registration Statement to be
effective continuously and shall keep the Exchange Offer open for a period of
not less than the minimum period required under applicable U.S. federal and
state securities laws to Consummate the Exchange Offer; provided, however, that
in no event shall such period be less than 20 business days. The Company and the
Subsidiary Guarantors shall cause the Exchange Offer to comply with all
applicable U.S. federal and state securities laws. No securities other than the
Exchange Notes and the Guarantees shall be included in the Exchange Offer
Registration Statement. The Company and the Subsidiary Guarantors shall use
their reasonable best efforts to cause the Exchange Offer to be Consummated
within 30 business days after the Exchange Offer Registration Statement has
become effective.

            (c) The Company and the Subsidiary Guarantors shall indicate in a
"Plan of Distribution" section of the Prospectus contained in the Exchange Offer
Registration Statement that any Broker-Dealer who holds Notes that are Transfer
Restricted Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company), may exchange such
Notes pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed
to be an "underwriter" within the meaning of the Securities Act and must,
therefore, deliver a Prospectus meeting the requirements of the Securities Act
in connection with any resales of the Exchange Notes received by such
Broker-Dealer in the Exchange Offer, which Prospectus delivery requirement may
be satisfied by the delivery by such Broker-Dealer of the Prospectus contained
in the Exchange Offer Registration Statement. Such "Plan of Distribution"
section shall also contain all other information with respect to such resales by
Broker-Dealers that the Commission may require in order to permit such resales
pursuant thereto, but such "Plan of Distribution" shall not name any such
Broker-Dealer or disclose the amount of Notes held by any such Broker-Dealer
except to the extent required by the Commission.

            The Company and the Subsidiary Guarantors shall use their reasonable
best efforts to keep the Exchange Offer Registration Statement continuously
effective, supplemented and amended as required by the provisions of Section
6(c) below to the extent necessary to ensure that it is available for resales of
Exchange Notes acquired by Broker-Dealers for their own accounts as a result of
market-making activities or other trading activities, and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time to
time, for a period of at least 90 days after the Consummation of the Exchange
Offer.

            The Company and the Subsidiary Guarantors shall provide sufficient
copies of the latest version of such Prospectus to Broker-Dealers promptly upon
request at any time during such 90-day period in order to facilitate such
resales.

      SECTION 4. SHELF REGISTRATION

                                       6
<PAGE>

            (a) Shelf Registration. If (i) the Company and the Subsidiary
Guarantors are not required to file an Exchange Offer Registration Statement or
cannot Consummate the Exchange Offer because the Exchange Offer is not permitted
by applicable U.S. law or Commission policy (after the procedures set forth in
Section 6(a) below have been complied with) or (ii) if any Holder of Transfer
Restricted Securities shall notify the Company prior to the 20th day following
the Consummation of the Exchange Offer that such Holder (A) is prohibited by
applicable U.S. law or Commission policy from participating in the Exchange
Offer, (B) may not resell the Exchange Notes acquired by it in the Exchange
Offer to the public without delivering a prospectus and that the Prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder or (C) is a Broker-Dealer and holds
Notes acquired directly from the Company or one of its affiliates, then the
Company and the Subsidiary Guarantors shall:

            (x) use their reasonable best efforts to cause to be filed a
      Registration Statement pursuant to Rule 415 under the Securities Act,
      which may be an amendment to the Exchange Offer Registration Statement if
      permitted by the rules and regulations of the Commission (in either event,
      the "Shelf Registration Statement") on or prior to the earliest to occur
      of (1) the 30th day after the date on which the Company and the Subsidiary
      Guarantors determine that they are not required to file the Exchange Offer
      Registration Statement or permitted to Consummate the Exchange Offer and
      (2) the 30th day after the date on which the Company receives notice from
      a Holder of Transfer Restricted Securities as contemplated by clause (ii)
      of paragraph (a) above (such earliest date being the "Shelf Filing
      Deadline"), which Shelf Registration Statement shall provide for resales
      of all Transfer Restricted Securities by the Holders which shall have
      provided the information required pursuant to Section 4(b) hereof; and

            (y) use their reasonable best efforts to cause such Shelf
      Registration Statement to be declared effective by the Commission on or
      before the 90th day after the Shelf Filing Deadline.

Subject to Section 5(b), the Company and the Subsidiary Guarantors shall use
their reasonable best efforts to keep such Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is
available for resales of Notes or Exchange Notes by the Holders of Transfer
Restricted Securities entitled to the benefit of this Section 4(a), and to
ensure that it conforms with the requirements of this Agreement, the Securities
Act and the policies, rules and regulations of the Commission as announced from
time to time, for a period of at least two years following the Closing Date or
such shorter period that will terminate when all Notes or Exchange Notes covered
by the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement (such period being the "Shelf Registration Period").

            (b) Provision by Holders of Certain Information in Connection with
the Shelf Registration Statement. No Holder of Transfer Restricted Securities
may

                                       7
<PAGE>

include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, such
information as the Company may reasonably request for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included
therein. No Holder of Transfer Restricted Securities shall be entitled to
Additional Interest pursuant to Section 5 hereof unless and until such Holder
shall have used its reasonable best efforts to provide all such reasonably
requested information. Each Holder as to which any Shelf Registration Statement
is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading.

      SECTION 5. ADDITIONAL INTEREST

            (a) If (i) any of the Registration Statements required by this
Agreement are not filed with the Commission on or prior to the date specified
for such filing in Sections 3(a) and 4(a), as applicable, (ii) any of such
required Registration Statements have not been declared effective by the
Commission on or prior to the date specified for such effectiveness in Sections
3(a) and 4(a), as applicable, (iii) the Exchange Offer has not been Consummated
within 30 business days, or longer, if required by federal securities laws,
after the Exchange Offer Registration Statement has been declared effective or
(iv) any Registration Statement required by this Agreement is filed and declared
effective but shall thereafter cease to be effective or fail to be usable in
connection with resales of Transfer Restricted Securities without being
succeeded immediately by a post-effective amendment to such Registration
Statement that cures such failure and that is itself immediately declared
effective during the period specified in Sections 3(b), 3(c) and 4(a), as
applicable (except as permitted in paragraph (b); such period of time during
which any such Registration Statement is not effective or any such Registration
Statement or the related Prospectus is not usable being referred to as a
"Blackout Period") (each such event referred to in clauses (i) through (iv), a
"Registration Default"), the Company and the Subsidiary Guarantors jointly and
severally agree to pay additional interest ("Additional Interest") to each
Holder of Transfer Restricted Securities adversely affected by such Registration
Default, in an amount equal to $.05 per week per $1,000 principal amount of
Transfer Restricted Securities held by such Holder with respect to the first
90-day period immediately following the occurrence of such Registration Default.
The amount of Additional Interest shall increase by an additional $.05 per week
per $1,000 principal amount of Transfer Restricted Securities with respect to
each subsequent 90-day period (or portion thereof) until all Registration
Defaults have been cured, up to a maximum amount of Additional Interest for all
Registration Defaults of $.50 per week per $1,000 principal amount of Transfer
Restricted Securities. All accrued Additional Interest shall be paid to Record
Holders by the Company and the Subsidiary Guarantors in the same manner as
interest is paid under the Notes. Following the cure of all Registration
Defaults relating to any particular Transfer Restricted Securities, the accrual
of Additional Interest with respect to such Transfer Restricted Securities will
cease.

                                       8
<PAGE>

            (b) A Registration Default referred to in Section 5(a)(iv) shall be
deemed not to have occurred and be continuing in relation to a Registration
Statement or the related Prospectus if (i) the Blackout Period has occurred
solely as a result of (x) the filing of a post-effective amendment to such Shelf
Registration Statement to incorporate annual audited financial information with
respect to the Company where such post-effective amendment is not yet effective
and needs to be declared effective to permit Holders to use the related
Prospectus or (y) the occurrence of other material events with respect to the
Company that would need to be described in such Registration Statement or the
related Prospectus and (ii) in the case of clause (y), the Company is proceeding
promptly and in good faith to amend or supplement (including by way of filing
documents under the Exchange Act which are incorporated by reference into the
Registration Statement) such Registration Statement and the related Prospectus
to describe such events; provided, however, that in any case if such Blackout
Period occurs for a continuous period in excess of 30 days, a Registration
Default shall be deemed to have occurred on the 31st day of such Blackout
Period, and Additional Interest shall be payable in accordance with the above
paragraph from the day such Registration Default occurs until such Registration
Default is cured or until the Company and the Subsidiary Guarantors are no
longer required pursuant to this Agreement to keep such Registration Statement
effective or such Registration Statement or the related Prospectus usable;
provided further, however, that in no event shall the total of all Blackout
Periods exceed 45 days in the aggregate of any 12-month period.

            All payment obligations of the Company and the Subsidiary Guarantors
set forth in this section that are outstanding with respect to any Transfer
Restricted Security at the time such security ceases to be a Transfer Restricted
Security shall survive until such time as all such payment obligations with
respect to such security shall have been satisfied in full.

      SECTION 6. REGISTRATION PROCEDURES

            (a) Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company and the Subsidiary Guarantors shall comply with all
of the provisions of Section 6(c) below, shall use their reasonable best efforts
to effect such exchange to permit the sale of Transfer Restricted Securities
being sold in accordance with the intended method or methods of distribution
thereof, and shall comply with all of the following provisions:

                  (i) As a condition to its participation in the Exchange Offer
      pursuant to the terms of this Agreement, each Holder of Transfer
      Restricted Securities shall furnish, upon the request of the Company,
      prior to the Consummation thereof, a written representation to the Company
      and the Subsidiary Guarantors (which may be contained in the letter of
      transmittal contemplated by the Exchange Offer Registration Statement) to
      the effect that (A) it is not an affiliate of the Company, (B) it is not
      engaged in, and does not intend to engage in, and has no arrangement or
      understanding with any Person to participate in, a distribution of the
      Exchange Notes to be issued in the Exchange

                                       9
<PAGE>

      Offer and (C) it is acquiring the Exchange Notes in its ordinary course of
      business. In addition, all such Holders of Transfer Restricted Securities
      shall otherwise cooperate in the Company's and the Subsidiary Guarantors'
      preparations for the Exchange Offer. Each Holder hereby acknowledges and
      agrees that any Broker-Dealer and any such Holder using the Exchange Offer
      to participate in a distribution of the securities to be acquired in the
      Exchange Offer (1) could not under Commission policy as in effect on the
      date of this Agreement rely on the position of the Commission enunciated
      in Exxon Capital Holdings Corporation (available May 13, 1988) and Morgan
      Stanley and Co., Inc. (available June 5, 1991), as interpreted in the
      Commission's letter to Shearman & Sterling dated July 2, 1993, and similar
      no-action letters, and (2) must comply with the registration and
      prospectus delivery requirements of the Securities Act in connection with
      a secondary resale transaction and that such a secondary resale
      transaction should be covered by an effective Registration Statement
      containing the selling security holder information required by Item 507 or
      508, as applicable, of Regulation S-K if the resales are of Exchange Notes
      obtained by such Holder in exchange for Notes acquired by such Holder
      directly from the Company.

                  (ii) Prior to effectiveness of the Exchange Offer Registration
      Statement, the Company and the Subsidiary Guarantors shall state to the
      Commission that the Company and the Subsidiary Guarantors are registering
      the Exchange Offer in reliance on the position of the Commission
      enunciated in Exxon Capital Holdings Corporation (available May 13, 1988)
      and Morgan Stanley and Co., Inc. (available June 5, 1991) and shall
      represent to the Commission that neither the Company nor any Subsidiary
      Guarantor has entered into any arrangement or understanding with any
      Person to distribute the Exchange Notes to be received in the Exchange
      Offer and that, to the best of the Company's and each Subsidiary
      Guarantor's information and belief, each Holder participating in the
      Exchange Offer is acquiring the Exchange Notes in its ordinary course of
      business and has no arrangement or understanding with any Person to
      participate in the distribution of the Exchange Notes received in the
      Exchange Offer; and

                  (iii) The Company shall issue, upon the request of any Holder
      of Notes covered by the Exchange Offer, Exchange Notes, having an
      aggregate principal amount equal to the aggregate principal amount of
      Notes surrendered to the Company by such Holder in exchange therefor; such
      Exchange Notes to be registered in the name of such Holder or in the name
      of the purchaser(s) of such Exchange Notes, as the case may be; in return,
      the Notes held by such Holder shall be surrendered to the Company for
      cancellation.

            (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company and the Subsidiary Guarantors shall comply
with all of the provisions of Section 6(c) below and shall use their reasonable
best efforts to effect such registration to permit the sale of the Transfer
Restricted Securities being sold in accordance with the intended method or
methods of distribution thereof, and pursuant thereto the Company and the
Subsidiary Guarantors will as expeditiously as possible

                                       10
<PAGE>

prepare and file with the Commission a Registration Statement relating to the
registration on any appropriate form under the Securities Act, which form shall
be available for the sale of the Transfer Restricted Securities in accordance
with the intended method or methods of distribution thereof.

            (c) General Provisions. In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Notes and Exchange Notes by Broker-Dealers), the Company and the Subsidiary
Guarantors shall:

                  (i) use their reasonable best efforts to keep such
      Registration Statement continuously effective and provide all requisite
      financial statements (including, if required by the Securities Act or any
      regulation thereunder, financial statements of any Subsidiary Guarantor)
      for the period specified in Sections 3 or 4 of this Agreement, as
      applicable; upon the occurrence of any event that would cause any such
      Registration Statement or the Prospectus contained therein (A) to contain
      a material misstatement or omission or (B) not to be effective and usable
      for resale of Transfer Restricted Securities during the period required by
      this Agreement, the Company and the Subsidiary Guarantors shall file
      promptly an appropriate amendment to such Registration Statement, in the
      case of clause (A), correcting any such misstatement or omission, and, in
      the case of either clause (A) or (B), use their reasonable best efforts to
      cause such amendment to be declared effective and such Registration
      Statement and the related Prospectus to become usable for their intended
      purpose(s) as soon as practicable thereafter. Notwithstanding the
      foregoing, the Company and the Subsidiary Guarantors may allow the Shelf
      Registration Statement to cease to become effective and usable if (x) the
      board of directors of the Company determines in good faith that it is in
      the best interests of the Company not to disclose the existence of or
      facts surrounding any proposed or pending material corporate transaction
      involving the Company or the Subsidiary Guarantors, and the Company
      notifies the Holders within two business days after such board of
      directors makes such determination or (y) the Prospectus contained in the
      Shelf Registration Statement contains an untrue statement of a material
      fact or omits to state a material fact necessary in order to make the
      statements made therein, in the light of the circumstances under which
      they were made, not misleading; provided that the two-year period referred
      to in Section 4(a) hereof during which the Shelf Registration Statement is
      required to be effective and usable shall be extended by the number of
      days during which such Registration Statement was not effective or usable
      pursuant to the foregoing provisions; and provided further that Additional
      Interest shall accrue on the Notes as provided in Section 5 hereof;

                  (ii) prepare and file with the Commission such amendments and
      post-effective amendments to the Registration Statement as may be
      necessary to keep the Registration Statement effective for the applicable
      period set forth in Sections 3 or 4 hereof, as applicable; cause the
      Prospectus to be supplemented by

                                       11
<PAGE>

      any required Prospectus supplement, and as so supplemented to be filed
      pursuant to Rule 424 under the Securities Act, and to comply fully with
      the applicable provisions of Rules 424 and 430A under the Securities Act
      in a timely manner; and comply with the provisions of the Securities Act
      with respect to the disposition of all securities covered by such
      Registration Statement during the applicable period in accordance with the
      intended method or methods of distribution by the sellers thereof set
      forth in such Registration Statement or supplement to the Prospectus;

                  (iii) cooperate with the selling Holders of Transfer
      Restricted Securities and the underwriter(s), if any, to facilitate the
      timely preparation and delivery of certificates representing Transfer
      Restricted Securities to be sold and not bearing any restrictive legends;
      and enable such Transfer Restricted Securities to be in such denominations
      and registered in such names as the Holders or the underwriter(s), if any,
      may request at least two business days prior to any sale of Transfer
      Restricted Securities made by such Holders or underwriter(s);

                  (iv) use their reasonable best efforts to cause the Transfer
      Restricted Securities covered by the Registration Statement to be
      registered with or approved by such other governmental agencies or
      authorities as may be necessary to enable the seller or sellers thereof or
      the underwriter(s), if any, to consummate the disposition of such Transfer
      Restricted Securities;

                  (v) if any fact or event contemplated by clause (d)(i)(D)
      below shall exist or have occurred, prepare a supplement or post-effective
      amendment to the Registration Statement or related Prospectus or any
      document incorporated therein by reference or file any other required
      document so that, as thereafter delivered to the purchasers of Transfer
      Restricted Securities, the Prospectus will not contain an untrue statement
      of a material fact or omit to state any material fact necessary to make
      the statements made therein, in the light of the circumstances under which
      they were made, not misleading;

                  (vi) provide a CUSIP, CINS or ISIN number, as applicable, for
      all Transfer Restricted Securities not later than the effective date of
      the Registration Statement and provide the Trustee under the Indenture
      with printed certificates for the Transfer Restricted Securities which are
      in a form eligible for deposit with the depositary;

                  (vii) cooperate and assist in any filings required to be made
      with the NASD and in the performance of any due diligence investigation by
      any underwriter (including any "qualified independent underwriter") that
      is required to be retained in accordance with the rules and regulations of
      the NASD;

                  (viii) otherwise use their best efforts to comply with all
      applicable rules and regulations of the Commission, and make generally
      available to their security holders, as soon as practicable, a
      consolidated earnings statement

                                       12
<PAGE>

      meeting the requirements of Rule 158 (which need not be audited) for the
      12-month period (A) commencing at the end of any fiscal quarter in which
      Transfer Restricted Securities are sold to underwriters in a firm or best
      efforts Underwritten Offering or (B) if not sold to underwriters in such
      an offering, beginning with the first month of the Company's first fiscal
      quarter commencing after the effective date of the Registration Statement;

                  (ix) cause the Indenture to be qualified under the TIA not
      later than the effective date of the first Registration Statement required
      by this Agreement, and, in connection therewith, cooperate with the
      Trustee and the Holders of Notes and Exchange Notes to effect such changes
      to the Indenture as may be required for such Indenture to be so qualified
      in accordance with the terms of the TIA; and execute, and use their best
      efforts to cause the Trustee to execute, all documents that may be
      required to effect such changes and all other forms and documents required
      to be filed with the Commission to enable such Indenture to be so
      qualified in a timely manner; and

                  (x) provide promptly to any Holder upon such Holder's written
      request each document filed with the Commission pursuant to the
      requirements of Section 13 and Section 15 of the Exchange Act.

            (d) Additional Provisions Applicable to Shelf Registration
Statements. In connection with each Shelf Registration Statement, during the
Shelf Registration Period, the Company and the Subsidiary Guarantors shall:

                  (i) advise the underwriter(s), if any, and selling Holders of
      Transfer Restricted Securities promptly and, if requested by such Persons,
      to confirm such advice in writing, (A) when the Prospectus or any
      Prospectus supplement or post-effective amendment has been filed, and,
      with respect to the Shelf Registration Statement or any post-effective
      amendment thereto, when the same has become effective, (B) of any request
      by the Commission for amendments to the Shelf Registration Statement or
      amendments or supplements to the Prospectus or for additional information
      relating thereto, (C) of the issuance by the Commission of any stop order
      suspending the effectiveness of the Registration Statement under the
      Securities Act, of the suspension by any state securities commission of
      the qualification of the Transfer Restricted Securities for offering or
      sale in any jurisdiction or of the initiation of any proceeding for any of
      the preceding purposes and (D) of the existence of any fact or the
      happening of any event that requires the making of any additions to or
      changes in the Shelf Registration Statement or the Prospectus in order
      that the Shelf Registration Statement and the Prospectus do not contain an
      untrue statement of a material fact or omit to state a material fact
      necessary to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading. If at any time
      the Commission shall issue any stop order suspending the effectiveness of
      the Shelf Registration Statement, or any U.S. state securities commission
      or other regulatory authority shall issue an order suspending the
      qualification or

                                       13
<PAGE>

      exemption from qualification of the Transfer Restricted Securities under
      U.S. state securities or blue sky laws, the Company and the Subsidiary
      Guarantors shall use their reasonable best efforts to obtain the
      withdrawal or lifting of such order at the earliest possible time;

                  (ii) if requested in writing, furnish to each of the selling
      Holders of Transfer Restricted Securities and each of the underwriter(s),
      if any, before filing with the Commission, copies of any Shelf
      Registration Statement or any Prospectus included therein or any
      amendments or supplements to any such Shelf Registration Statement or
      Prospectus (including all documents incorporated by reference after the
      initial filing of such Shelf Registration Statement), which documents will
      be subject to the review of such Holders and underwriter(s), if any, for a
      period of at least five business days, and the Company and the Subsidiary
      Guarantors will not file any such Shelf Registration Statement or
      Prospectus or any amendment or supplement to any such Shelf Registration
      Statement or Prospectus (including all such documents incorporated by
      reference) if a selling Holder of Transfer Restricted Securities covered
      by such Shelf Registration Statement or the underwriter(s), if any, shall
      not have had an opportunity to review the documents as set forth above;
      such Holders and underwriter(s) shall be deemed to have reasonably
      objected to such filing if such Shelf Registration Statement, amendment,
      Prospectus or supplement, as applicable, as proposed to be filed, contains
      an untrue statement of a material fact or omits to state any material fact
      necessary to make the statements made therein, in the light of the
      circumstances under which they were made, not misleading, or fails to
      comply with the applicable requirements of the Securities Act;

                  (iii) upon request, provide copies of any document that is to
      be incorporated by reference into a Shelf Registration Statement or
      Prospectus to the selling Holders and to the underwriter(s), if any, make
      the Company's and the Subsidiary Guarantors' representatives available for
      discussion of such document and other customary due diligence matters, and
      include such information in such document prior to the filing thereof as
      such selling Holders or underwriter(s), if any, reasonably may request;

                  (iv) make available for inspection at reasonable times at each
      of the Company's principal places of business by the selling Holders of
      Transfer Restricted Securities, any underwriter participating in any
      disposition pursuant to such Shelf Registration Statement, and any
      attorney or accountant retained by such selling Holders or any of the
      underwriter(s) who shall certify to the Company and the Subsidiary
      Guarantors that they have a current intention to sell Transfer Restricted
      Securities pursuant to a Shelf Registration Statement, such relevant
      financial and other records, pertinent corporate documents and properties
      of the Company and the Subsidiary Guarantors as reasonably requested and
      cause the Company's and the Subsidiary Guarantors' officers, directors and
      employees to respond to such inquiries as shall be reasonably necessary,
      in the reasonable judgment of counsel to such selling Holders or
      underwriters, to conduct a

                                       14
<PAGE>

      reasonable investigation; provided, however, that the foregoing inspection
      and information gathering shall be coordinated on behalf of the selling
      Holders by one counsel designated by and on behalf of such Holders and,
      provided further, however, that each such party shall be required to
      maintain in confidence and not disclose to any other Person any
      information or records reasonably designated by the Company in writing as
      being confidential, until such time as (A) such information becomes a
      matter of public record (whether by virtue of its inclusion in such Shelf
      Registration Statement or otherwise), (B) such Person shall be required so
      to disclose such information pursuant to a subpoena or order of any court
      or other governmental agency or body having jurisdiction over the matter
      (subject to the requirements of such order, and only after such Person
      shall have given the Company prompt prior written notice of such
      requirement) or (C) such information is required to be set forth in such
      Shelf Registration Statement or the Prospectus included therein or in an
      amendment to such Shelf Registration Statement or an amendment or
      supplement to such Prospectus in order that such Shelf Registration
      Statement, Prospectus, amendment or supplement, as the case may be, does
      not contain an untrue statement of a material fact or omit to state
      therein a material fact required to be stated therein or necessary to make
      the statements made therein not misleading;

                  (v) if requested by any selling Holders of Transfer Restricted
      Securities or the underwriter(s), if any, promptly incorporate in any
      Shelf Registration Statement or Prospectus pursuant to a supplement or
      post-effective amendment if necessary, such information as such selling
      Holders and underwriter(s), if any, may reasonably request to have
      included therein, including, without limitation, information relating to
      the "Plan of Distribution" of the Transfer Restricted Securities
      information with respect to the principal amount of Transfer Restricted
      Securities being sold to such underwriter(s), the purchase price being
      paid therefor and any other terms of the offering of the Transfer
      Restricted Securities to be sold in such offering; and make all required
      filings of such Prospectus supplement or post-effective amendment as soon
      as practicable after the Company are notified of the matters to be
      incorporated in such Prospectus supplement or post-effective amendment;
      provided, however, that the Company shall not be required to take any
      action pursuant to this Section 6(d)(v) that would, in the opinion of
      counsel for the Company reasonably satisfactory to the Initial Purchasers,
      violate applicable law;

                  (vi) deliver to each selling Holder of Transfer Restricted
      Securities and each of the underwriter(s), if any, without charge, as many
      copies of the Prospectus (including each preliminary Prospectus) and any
      amendment or supplement thereto as such Persons reasonably may request;
      the Company and the Subsidiary Guarantors hereby consent to the use of the
      Prospectus and any amendment or supplement thereto by each of the selling
      Holders and each of the underwriter(s), if any, in connection with the
      offering and the sale of the Transfer

                                       15
<PAGE>

      Restricted Securities covered by the Prospectus or any amendment or
      supplement thereto;

                  (vii) furnish to each Holder whose Transfer Restricted
      Securities have been included in a Shelf Registration Statement in
      connection with such exchange or sale, without charge, at least one copy
      of the Registration Statement, as first filed with the Commission, and of
      each amendment thereto, including all documents incorporated by reference
      therein and all exhibits (including exhibits incorporated therein by
      reference);

                  (viii) enter into an underwriting agreement on not more than
      one occasion in the case of an offering pursuant to a Shelf Registration,
      and make such representations and warranties, and take all such other
      actions in connection therewith in order to expedite or facilitate the
      disposition of the Transfer Restricted Securities pursuant to any
      Registration Statement contemplated by this Agreement, all to such extent
      as may be reasonably requested by any Holder or Holders of Transfer
      Restricted Securities who hold at least 25% in aggregate principal amount
      of such class of Transfer Restricted Securities; provided that the Company
      and the Subsidiary Guarantors shall not be required to enter into any such
      agreement more than once with respect to all of the Transfer Restricted
      Securities and may delay entering into such agreement if the board of
      directors of each of the Company and the Subsidiary Guarantors determines
      in good faith that it is in the best interests of the Company and the
      Subsidiary Guarantors not to disclose the existence of or facts
      surrounding any proposed or pending material corporate transaction
      involving the Company and the Subsidiary Guarantors; and whether or not an
      underwriting agreement is entered into and whether or not the registration
      is an Underwritten Registration, the Company and the Subsidiary Guarantors
      shall:

                        (A) furnish to the Initial Purchasers, the Holders of
      Transfer Restricted Securities who hold at least 25% in aggregate
      principal amount of such class of Transfer Restricted Securities and each
      underwriter, if any, in such substance and scope as they may reasonably
      request and as are customarily made in connection with an offering of debt
      securities pursuant to a Shelf Registration Statement (i) upon the
      effective date of the Shelf Registration Statement (and if such Shelf
      Registration Statement contemplates an Underwritten Offering of Transfer
      Restricted Securities upon the date of the closing under the underwriting
      agreement related thereto) and (ii) upon the filing of any amendment or
      supplement to the Shelf Registration Statement or any other document that
      is incorporated in the Shelf Registration Statement by reference and
      includes financial data with respect to a fiscal quarter or year:

                        (1) a certificate, dated the date of effectiveness of
            the Shelf Registration Statement signed by (y) the respective chief
            executive officer, the respective President or any Vice President
            and (z) the respective chief financial officer of each of the
            Company and each of the

                                       16
<PAGE>

            Subsidiary Guarantors confirming, as of the date thereof, the
            matters set forth in Section 7(m) of the Purchase Agreement and such
            other matters as such parties may reasonably request;

                        (2) an opinion, dated the date of effectiveness of such
            Shelf Registration Statement, of securities counsel for the Company
            covering matters similar to those set forth in Section 7(d) of the
            Purchase Agreement and such other matters as such parties may
            reasonably request, and in any event including a statement to the
            effect that such counsel has participated in conferences with
            officers and other representatives of the Company and the Subsidiary
            Guarantors, representatives of the independent public accountants
            for the Company, the Initial Purchasers' representatives and the
            Initial Purchasers' counsel in connection with the preparation of
            such Shelf Registration Statement and the related Prospectus
            although such counsel has not independently verified the accuracy,
            completeness or fairness of such statements in such Shelf
            Registration Statement; and that such counsel advises that, on the
            basis of the foregoing, such counsel's work in connection with this
            work did not disclose information that gave such counsel reason to
            believe that the Shelf Registration Statement, at the time such
            Shelf Registration Statement or any post-effective amendment thereto
            became effective, contained an untrue statement of a material fact
            or omitted to state a material fact required to be stated therein or
            necessary to make the statements therein not misleading, or that the
            Prospectus contained in such Shelf Registration Statement as of its
            date contained an untrue statement of a material fact or omitted to
            state a material fact necessary in order to make the statements made
            therein, in the light of the circumstances under which they were
            made, not misleading. Such counsel may state further that such
            counsel expresses no view with respect to, and has not independently
            verified, the accuracy, completeness or fairness of the financial
            statements, notes and schedules, the financial projections and the
            other financial, statistical and accounting data included or
            incorporated by reference in the Shelf Registration Statement
            contemplated by this Agreement or the related Prospectus; and

                        (3) a customary comfort letter, dated as of the date of
            effectiveness of the Shelf Registration Statement from the Company's
            independent accountants, in the customary form and covering matters
            of the type customarily covered in comfort letters to underwriters
            in connection with primary underwritten offerings, and affirming the
            matters set forth in the comfort letters delivered pursuant to
            Sections 7(j) and 7(k) of the Purchase Agreement;

                        (B) set forth in full or incorporated by reference in
      the underwriting agreement, if any, the indemnification provisions and
      procedures of

                                       17
<PAGE>

      Section 8 hereof with respect to all parties to be indemnified pursuant to
      said Section; and

                        (C) deliver such other documents and certificates as may
      be reasonably requested by such parties to evidence compliance with clause
      (A) above and with any customary conditions contained in the underwriting
      agreement or other agreement entered into by the Company and the
      Subsidiary Guarantors pursuant to this clause (viii), if any.

If at any time during the Shelf Registration Period the representations and
warranties of the Company or the Subsidiary Guarantors contemplated in clause
(A)(1) above cease to be true and correct, the Company or the Subsidiary
Guarantors shall so advise the Initial Purchasers and the underwriters, if any,
and each selling Holder promptly and, if requested by such Persons, shall
confirm such advice in writing; and

                  (ix) prior to any public offering of Transfer Restricted
      Securities cooperate with the selling Holders of Transfer Restricted
      Securities, the underwriter(s), if any, and their respective counsel in
      connection with the registration and qualification of the Transfer
      Restricted Securities under the securities or blue sky laws of such
      jurisdictions as the selling Holders of Transfer Restricted Securities or
      underwriter(s), if any, may reasonably request and do any and all other
      acts or things necessary or advisable to enable the disposition in such
      jurisdictions of the Transfer Restricted Securities covered by the Shelf
      Registration Statement filed pursuant to Section 4 hereof; provided,
      however, that the Company and the Subsidiary Guarantors shall not be
      obligated to qualify as a foreign corporation in any jurisdiction in which
      they are not now so qualified or to take any action that would subject
      them to general consent to service of process, other than as to matters
      and transactions relating to the Shelf Registration Statement, in any
      jurisdiction where they are not now so subject.

            (e) Each Holder agrees by acquisition of a Transfer Restricted
Security that, upon receipt of any notice from the Company of the existence of
any fact of the kind described in Section 6(d)(i) hereof, such Holder will
forthwith discontinue disposition of Transfer Restricted Securities pursuant to
the Shelf Registration Statement until such Holder's receipt of the copies of
the supplemented or amended Prospectus contemplated by Section 6(d)(vi) hereof,
or until it is advised in writing (the "Advice") by the Company that the use of
the Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus. If so
directed by the Company, each Holder will deliver to the Company (at the
Company's expense) all copies, other than permanent file copies then in such
Holder's possession, of the Prospectus covering such Transfer Restricted
Securities that was current at the time of receipt of such notice. In the event
the Company shall give any such notice, the time period regarding the
effectiveness of such Shelf Registration Statement set forth in Section 4
hereof, as applicable, shall be extended by the number of days during the period
from and including the date of the giving of such notice pursuant to Section
6(d)(i) hereof to and including the date when each selling Holder covered by

                                       18
<PAGE>

such Shelf Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(d)(vi) hereof or
shall have received the Advice.

            (f) The Company and the Subsidiary Guarantors may require each
Holder of Transfer Restricted Securities as to which any registration is being
effected to furnish to the Company such information regarding such Holder and
such Holder's intended method of distribution of the applicable Transfer
Restricted Securities as the Company may from time to time reasonably request in
writing, but only to the extent that such information is required in order to
comply with the Securities Act. Each such Holder agrees to notify the Company as
promptly as practicable of (i) any inaccuracy or change in information
previously furnished by such Holder to the Company or (ii) the occurrence of any
event, in either case, as a result of which any Prospectus relating to such
registration contains or would contain an untrue statement of a material fact
regarding such Holder or such Holder's intended method of distribution of the
applicable Transfer Restricted Securities or omits to state any material fact
regarding such Holder or such Holder's intended method of distribution of the
applicable Transfer Restricted Securities required to be stated therein or
necessary to make the statements made therein, in the light of the circumstances
under which they were made, not misleading and promptly to furnish to the
Company any additional information required to correct and update any previously
furnished information or required so that such Prospectus shall not contain,
with respect to such Holder or the distribution of the applicable Transfer
Restricted Securities an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading.

      SECTION 7. REGISTRATION EXPENSES

            (a) All expenses incident to the Company's and the Subsidiary
Guarantors' performance of or compliance with this Agreement will be borne by
the Company regardless of whether a Registration Statement becomes effective,
including without limitation and as applicable: (i) all Commission, securities
exchange or NASD registration and filing fees and expenses (including filings
made by any Initial Purchasers or Holder with the NASD (and, if applicable, the
fees and expenses of any "qualified independent underwriter" and its counsel
that may be required by the rules and regulations of the NASD)); (ii) all fees
and expenses of compliance with U.S. federal securities and state blue sky or
securities laws and compliance with the rules of the NASD (including reasonable
fees and disbursements of one counsel for Holders in connection with blue sky
and/or NASD qualification of the Exchange Notes); (iii) all expenses of printing
(including printing certificates for the Exchange Notes to be issued in the
Exchange Offer and printing of Prospectuses), messenger and delivery services;
(iv) all fees and disbursements of counsel for the Company and the Subsidiary
Guarantors; (v) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit and
comfort letters required by or incident to such performance) and (vi) the
reasonable fees and disbursements of one firm of counsel designated by the
Holders of a majority in principal amount of Transfer

                                       19
<PAGE>

Restricted Securities covered by the Shelf Registration Statement to act as
counsel for the Holders of those Transfer Restricted Securities in connection
therewith.

            The Company will, in any event, bear their and the Subsidiary
Guarantors' internal expenses (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Company or the Subsidiary Guarantors.

            (b) Each Holder of Transfer Restricted Securities will pay all
underwriting discounts, if any, and commissions and transfer taxes, if any,
relating to the disposition of such Holder's Transfer Restricted Securities.

      SECTION 8. INDEMNIFICATION

            (a) The Company and each Subsidiary Guarantor shall, jointly and
severally, indemnify and hold harmless each Holder of Transfer Restricted
Securities, its officers and employees and each Person, if any, who controls any
such Holders, within the meaning of the Securities Act, from and against any
loss, claim, damage or liability, joint or several, or any action in respect
thereof (including, but not limited to, any loss, claim, damage, liability or
action relating to purchases, sales and registration of the Notes, the
Guarantees and the Exchange Notes), to which that Holder, officer, employee or
controlling Person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
based upon (i) any untrue statement or alleged untrue statement of a material
fact contained (A) in any Registration Statement or preliminary Prospectus or
Prospectus or in any amendment or supplement thereto, (B) in any Blue Sky
Application (as defined below) or other document prepared or executed by any
Company or any Subsidiary Guarantor (or based upon any written information
furnished by any Company or any Subsidiary Guarantor) specifically for the
purpose of qualifying any or all of the Notes under the securities laws of any
state or other jurisdiction (any such application, document or information being
hereinafter called a "Blue Sky Application") or (C) in any materials or
information provided to investors by, or with the approval of, the Company in
connection with the marketing of the offering of the Exchange Notes ("Marketing
Materials"), including any roadshow or investor presentations made to investors
by the Company (whether in person or electronically); (ii) the omission or
alleged omission to state in any Registration Statement, preliminary Prospectus
or Prospectus, or in any amendment or supplement thereto, or in any Blue Sky
Application or Marketing Materials any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, or (iii) any act or failure to act or
any alleged act or failure to act by any Holder of Transfer Restricted
Securities in connection with, or relating in any manner to, the Notes, the
Guarantees or the Exchange Notes or the offering contemplated by any
Registration Statement, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon matters
covered by clause (i) or (ii) above (provided that the Company and the
Subsidiary Guarantors shall not be liable under this clause (iii) to the extent
that it is determined in a

                                       20
<PAGE>

final judgment by a court of competent jurisdiction that such loss, claim,
damage, liability or action resulted directly from any such acts or failures to
act undertaken or omitted to be taken by such Holder through its gross
negligence or willful misconduct); and shall reimburse each Holder and each such
officer, employee or controlling Person promptly upon demand for any legal or
other expenses reasonably incurred by that Holder, officer, employee or
controlling Person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that the Company and the Subsidiary
Guarantors shall not be liable in any such case to the extent that any such
loss, claim, damage, liability or action arises out of, or is based upon, any
untrue statement or alleged untrue statement or omission or alleged omission
made in any Registration Statement, preliminary Prospectus or Prospectus, or in
any such amendment or supplement, or in any Blue Sky Application or Marketing
Materials, in reliance upon and in conformity with written information
concerning such Holder furnished to the Company by or on behalf of any Holder
specifically for inclusion therein; provided, further, that with respect to any
such untrue statement or omission made in any preliminary Prospectus or
Prospectus, the indemnity agreement contained in this Section 8(a) shall not
inure to the benefit of the Holder from whom the Person asserting any such
losses, claims, damages or liabilities purchased the Notes, Guarantees or
Exchange Notes concerned if, to the extent that such sale was a sale by the
Holder and any such loss, claim, damage or liability of such Holder is a result
of the fact that both (A) a copy of the Prospectus (or the Prospectus as then
amended or supplemented) was not sent or given to such Person at or prior to
written confirmation of the sale of such Notes or Exchange Notes to such Person
and (B) the untrue statement or omission in the preliminary Prospectus or
Prospectus was corrected in the Prospectus (or the Prospectus as then amended or
supplemented) unless such failure to deliver the Prospectus was a result of
noncompliance by the Company with Section 6(d)(vi) hereof. The foregoing
indemnity agreement is in addition to any liability which the Company and the
Subsidiary Guarantors may otherwise have to any Holder or to any officer,
employee or controlling Person of that Holder.

            (b) Each Holder, severally and not jointly, shall indemnify and hold
harmless each of the Company, each of the Subsidiary Guarantors, their
respective directors, officers and employees, and each Person, if any, who
controls either of the Company or any of the Subsidiary Guarantors within the
meaning of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which the
Company, the Subsidiary Guarantors or any such director, officer or controlling
Person may become subject, under the Securities Act or otherwise, insofar as
such loss, claim, damage, liability or action arises out of, or is based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained (A) in any Registration Statement, preliminary Prospectus or
Prospectus, or in any amendment or supplement thereto or (B) in any Blue Sky
Application or (ii) the omission or alleged omission to state in any
Registration Statement, preliminary Prospectus or Prospectus, or in any
amendment or supplement thereto, or in any Blue Sky Application any material
fact required to be stated therein or necessary to make the statements therein
not misleading, but in each case only to the extent that the untrue statement or
alleged untrue

                                       21
<PAGE>

statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Holders furnished to the
Company by or on behalf of that Holder specifically for inclusion therein, which
information consists of the information specified in Section 8(e) of the
Purchase Agreement, and shall reimburse the Company, each of the Subsidiary
Guarantors and each such director, officer, employee and controlling Person for
any legal or other expenses reasonably incurred by the Company, each such
Subsidiary Guarantor or each such director, officer, employee or controlling
Person in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are
incurred. The foregoing indemnity agreement is in addition to any liability
which any Holder may otherwise have to the Company, any of the Subsidiary
Guarantors or any such director, officer, employee or controlling Person.

            (c) Promptly after receipt by an indemnified party under this
Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure and; provided, further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, any
indemnified party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel has been specifically authorized by the indemnifying
party in writing, or (ii) such indemnified party shall have been advised by such
counsel that there may be one or more legal defenses available to it which are
different from or additional to those available to the indemnifying party and in
the reasonable judgment of such counsel it is advisable for such indemnified
party to employ separate counsel or (iii) the indemnifying party has failed to
assume the defense of such action and employ counsel reasonably satisfactory to
the indemnified party, in which case, if such indemnified party notifies the
indemnifying party in writing that it elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not, in
connection with any one such action or separate but substantially similar or
related actions arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of more than one separate

                                       22
<PAGE>

firm of attorneys (in addition to local counsel) at any time for all such
indemnified parties, which firm shall be designated in writing by (x) Lehman
Brothers Inc. if the indemnified parties under this Section 8 consist of the
Initial Purchasers or any of their respective officers, employees or controlling
Persons or (y) by the Company, if the indemnified parties under this Section 8
consist of any of the Company, any of the Subsidiary Guarantors or any of their
respective directors, officers, employees or controlling Persons. No
indemnifying party shall (i) without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld), settle
or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding or (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with the consent of the indemnifying party or if there
be a final judgment of the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.

            (d) If the indemnification provided for in this Section 8 shall for
any reason be unavailable to or insufficient to hold harmless an indemnified
party under Section 8(a) or 8(b) in respect of any loss, claim, damage or
liability, or any action in respect thereof, referred to therein, then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the Company and the Subsidiary Guarantors, on the one hand, and the
Holders on the other, from the sale of the Transfer Restricted Securities or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company and the Subsidiary Guarantors, on the one hand and the Holders on
the other with respect to the statements or omissions which resulted in such
loss, claim, damage or liability, or action in respect thereof, as well as any
other relevant equitable considerations. The relative fault shall be determined
by reference to whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or any of the Subsidiary Guarantors, on the
one hand, or the Holders, on the other hand, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company, the Subsidiary Guarantors and the
Holders agree that it would not be just and equitable if contributions pursuant
to this Section 8(d) were to be determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of
allocation which does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a
result of the loss, claim,

                                       23
<PAGE>

damage or liability, or action in respect thereof, referred to above in this
Section shall be deemed to include, for purposes of this Section 8(d), any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(d), no Holder shall be required to contribute any
amount in excess of the amount by which the net proceeds received by it in
connection with its sale of Notes exceeds the amount of any damages which such
Holder has otherwise paid or become liable to pay by reason of the untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. The Holders' obligations to
contribute as provided in this Section 8(d) are several and not joint.

      SECTION 9. RULE 144A

            The Company and each Subsidiary Guarantor hereby agrees with each
Holder of Transfer Restricted Securities, during any period in which the Company
or such Subsidiary Guarantor is not subject to Section 13 or 15(d) of the
Exchange Act within the two-year period following the Closing Date, to make
available to any Holder or beneficial owner of Transfer Restricted Securities,
in connection with any sale thereof and any prospective purchaser of such
Transfer Restricted Securities from such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144A.

      SECTION 10. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS

            No Holder may participate in any Underwritten Registration hereunder
unless such Holder (a) agrees to sell such Holder's Transfer Restricted
Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the
terms of such underwriting arrangements.

      SECTION 11. SELECTION OF UNDERWRITERS

            Subject to Section 6(d)(i), the Holders of Transfer Restricted
Securities covered by the Shelf Registration Statement who desire to do so may
sell such Transfer Restricted Securities in an Underwritten Offering at such
Holders' expense. In any such Underwritten Offering, the investment banker or
investment bankers and manager or managers that will administer the offering
will be selected by the Holders of a majority in aggregate principal amount of
the Transfer Restricted Securities included in such offering; provided that such
investment bankers and managers must be reasonably satisfactory to the Company.

                                       24
<PAGE>

      SECTION 12. MISCELLANEOUS

            (a) Remedies. The Company and the Subsidiary Guarantors agree that
monetary damages (including Additional Interest) would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of this Agreement and hereby agree to waive the defense in any action for
specific performance that a remedy at law would be adequate.

            (b) No Inconsistent Agreements. Neither the Company nor any
Subsidiary Guarantor will, on or after the date of this Agreement, enter into
any agreement with respect to its securities that is inconsistent with the
rights granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof. Except as disclosed in the Offering Memorandum (as such term
is defined in the Purchase Agreement), neither the Company nor any Subsidiary
Guarantor has previously entered into any agreement granting any registration
rights with respect to its securities to any Person. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's or any Subsidiary Guarantor's
securities under any agreement in effect on the date hereof.

            (c) Adjustments Affecting the Notes. The Company and the Subsidiary
Guarantors will not take any action, or permit any change to occur, with respect
to the Notes that would materially and adversely affect the ability of the
Holders to Consummate any Exchange Offer.

            (d) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company have obtained the
written consent of Holders of a majority of the outstanding principal amount of
the Transfer Restricted Securities affected by such amendment, modification,
supplement, waiver or consent. Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the
rights of Holders whose securities are being tendered pursuant to the Exchange
Offer and that does not affect directly or indirectly the rights of other
Holders whose securities are not being tendered pursuant to such Exchange Offer
may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities being tendered or registered.

            (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, facsimile or air
courier guaranteeing overnight delivery:

                  (i) if to a Holder, at the address set forth on the records of
      the Registrar under the Indenture, with a copy to the Registrar under the
      Indenture; and

                                       25
<PAGE>

                  (ii) if to the Company or the Subsidiary Guarantors to:

                       Extendicare Health Services, Inc.
                       111 West Michigan Street
                       Milwaukee, Wisconsin 53203-2903
                       Attention: Chief Executive Officer
                       Fax: (414) 908-8059

                       with a copy to:

                       Foley & Lardner LLP
                       777 East Wisconsin Avenue
                       Milwaukee, Wisconsin 53202-5306
                       Attention: Russell E. Ryba, Esq.
                       Fax: (414) 297-4900

            Any such notices and communications shall take effect at the time of
receipt thereof. The Company shall be entitled to act and rely upon any notice
or communication given or made by the Initial Purchasers.

            Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

            (f) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided, however, that this Agreement shall not
inure to the benefit of or be binding upon a successor or assign of a Holder
unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder.

            (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

            (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE PRINCIPLES OF CHOICE OF LAW THEREOF.

                                       26
<PAGE>

            (j) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

            (k) Entire Agreement. This Agreement together with the other
Operative Documents (as defined in the Purchase Agreement) is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company and the
Subsidiary Guarantors with respect to the Transfer Restricted Securities. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

                            (Signature pages follow.)

                                       27
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

                                   Very truly yours,

                                   EXTENDICARE HEALTH SERVICES, INC.

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                   EXTENDICARE HEALTH FACILITY HOLDINGS, INC.
                                   EXTENDICARE HEALTH FACILITIES, INC.
                                   NORTHERN HEALTH FACILITIES, INC.
                                   EXTENDICARE HOMES, INC.
                                   EXTENDICARE HEALTH NETWORK, INC.
                                   THE PROGRESSIVE STEP CORPORATION
                                   EXTENDICARE OF INDIANA, INC.
                                   EXTENDICARE GREAT TRAIL, INC.
                                   FIR LANE TERRACE CONVALESCENT CENTER, INC.
                                   ADULT SERVICES UNLIMITED, INC.
                                   ARBORS EAST, INC.
                                   ARBORS AT TOLEDO, INC.
                                   HEALTH POCONOS, INC.
                                   MARSHALL PROPERTIES, INC.

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                   INDIANA HEALTH AND REHABILITATION CENTERS
                                        PARTNERSHIP

                                   BY: EXTENDICARE HOMES, INC., AS
                                       GENERAL PARTNER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                   BY: EXTENDICARE OF INDIANA, INC., AS
                                       GENERAL PARTNER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                   CONCORDIA MANOR, LLC
                                   FIRST COAST HEALTH AND REHABILITATION
                                        CENTER, LLC
                                   JACKSON HEIGHTS REHABILITATION CENTER, LLC
                                   TREASURE ISLE CARE CENTER, LLC

                                   BY: EXTENDICARE HOMES, INC., AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                   KAUFMAN STREET, WV, LLC
                                   NEW CASTLE CARE, LLC

                                   BY: FIR LANE TERRACE CONVALESCENT CENTER,
                                       INC., AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                   ALPINE HEALTH AND REHABILITATION
                                     CENTER, LLC
                                   COLONIAL CARE, LLC
                                   GREENBRIAR CARE, LLC
                                   GREENBROOK CARE, LLC
                                   HERITAGE CARE, LLC
                                   LADY LAKE CARE, LLC
                                   NEW HORIZON CARE, LLC
                                   NORTH REHABILITATION CARE, LLC
                                   PALM COURT CARE, LLC
                                   RICHEY MANOR, LLC
                                   ROCKLEDGE CARE, LLC
                                   SOUTH HERITAGE HEALTH AND
                                     REHABILITATION CENTER, LLC
                                   THE OAKS RESIDENTIAL AND
                                     REHABILITATION CENTER, LLC
                                   WINTER HAVEN HEALTH AND
                                     REHABILITATION CENTER, LLC

                                   BY: EXTENDICARE HEALTH FACILITIES, INC.,
                                       AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                   ARBORS AT TAMPA, LLC
                                   ARBORS AT BAYONET POINT, LLC
                                   ARBORS AT FAIRLAWN CARE, LLC
                                   ARBORS AT FAIRLAWN REALTY OH, LLC
                                   ARBORS AT SYLVANIA CARE, LLC
                                   ARBORS AT SYLVANIA REALTY OH, LLC
                                   ARBORS WEST CARE, LLC
                                   ARBORS WEST REALTY OH, LLC
                                   COLUMBUS REHABILITATION REALTY OH,
                                     LLC
                                   JACKSONVILLE CARE, LLC
                                   SAFETY HARBOR CARE, LLC
                                   KISSIMMEE CARE, LLC
                                   ORANGE PARK CARE, LLC
                                   OREGON CARE, LLC
                                   PORT CHARLOTTE CARE, LLC
                                   SARASOTA CARE, LLC
                                   SEMINOLE CARE, LLC
                                   WINTER HAVEN CARE, LLC
                                   BLANCHESTER CARE, LLC
                                   CANTON CARE, LLC
                                   COLUMBUS REHABILITATION CARE, LLC
                                   DAYTON CARE, LLC
                                   DELAWARE CARE, LLC
                                   GALLIPOLIS CARE, LLC
                                   HILLIARD CARE, LLC
                                   LONDON CARE, LLC
                                   MARIETTA CARE, LLC
                                   ROCKMILL CARE, LLC
                                   ROCKSPRINGS CARE, LLC
                                   WATERVILLE CARE, LLC
                                   WOODSFIELD CARE, LLC

                                   BY: NORTHERN HEALTH FACILITIES, INC.,
                                       AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Mark W. Durishan
                                   Title: Vice President, Chief Financial
                                          Officer and Treasurer

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                   GREAT TRAIL CARE, LLC

                                   BY: EXTENDICARE GREAT TRAIL, INC.,
                                       AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Richard L. Bertrand
                                   Title: Senior Vice President - Development

                                   FISCAL SERVICES GROUP, LLC
                                   PARTNERS HEALTH GROUP, LLC
                                   STAR PURCHASING SERVICES, LLC

                                   BY: EXTENDICARE HEALTH NETWORK, INC.,
                                       AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Richard L. Bertrand
                                   Title: Senior Vice President - Development

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                   MILFORD CARE, LLC
                                   PRAIRIE VILLAGE CARE, LLC
                                   SCOTT VILLA CARE, LLC
                                   SWISS VILLA CARE, LLC
                                   VILLA PINES CARE, LLC

                                   BY: MARSHALL PROPERTIES, INC., AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Richard L. Bertrand
                                   Title: Senior Vice President - Development

                                   PARTNERS HEALTH GROUP - FLORIDA, LLC
                                   PARTNERS HEALTH GROUP - LOUISIANA, LLC
                                   PARTNERS HEALTH GROUP - TEXAS, LLC

                                   BY: PARTNERS HEALTH GROUP, LLC

                                   BY: EXTENDICARE HEALTH NETWORK, INC.,
                                       AS SOLE MEMBER

                                   By: _________________________________________
                                   Name: Richard L. Bertrand
                                   Title: Senior Vice President - Development

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>

Accepted on behalf of the Initial Purchasers:

LEHMAN BROTHERS INC.

By: ________________________________
    Name:
    Title:

                                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT<PAGE>
                                                                    EXHIBIT 10.8

(LOCAL CURRENCY - SINGLE JURISDICTION)

                                 [ISDA(R) LOGO]
                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                           dated as of April 16, 2004

U.S. Bank National Association and Extendicare Health Services, Inc. have
entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:

1.       INTERPRETATION

         (a) DEFINITIONS.  The terms defined in Section 12 and in the Schedule
         will  have the meanings therein specified for the purpose of this
         Master Agreement.

         (b) INCONSISTENCY. In the event of any inconsistency between the
         provision of the Schedule and the other provisions of this Master
         Agreement, the Schedule will prevail. In the event of any inconsistency
         between the provision of any Confirmation and this Master Agreement
         (including the Schedule), such Confirmation will prevail for the
         purpose of the relevant Transaction.

         (c) SINGLE AGREEMENT. All Transactions are entered into in reliance on
         the fact that this Master Agreement and all Confirmations form a single
         agreement between the parties (collectively referred to as this
         "Agreement"), and the parties would not otherwise enter into any
         Transactions.

2.       OBLIGATIONS

         (a) GENERAL CONDITIONS.

               (i)   Each party will make each payment or delivery specified
                     in each Confirmation to be made by it, subject to the
                     other provisions of this Agreement.

               (ii)  Payments under this agreement will be made on the due
                     date for value on that date in the place of the account
                     specified in the relevant Confirmation or otherwise
                     pursuant to this Agreement, in freely transferable funds
                     and in the manner customary for payments in the required
                     currency.

               (iii) Each obligation of each party under Section 2(a)(i)
                     is subject to (1) the condition precedent that no Event of
                     Default or Potential Event of Default with respect to the
                     other party has occurred and is continuing, (2) the
                     condition precedent that no Early Termination Date in
                     respect of the relevant Transaction has occurred or been
                     effectively designated and (3) each other applicable
                     condition precedent specified in this Agreement.

        Copyright(C)1992 by International Swap Dealers Association, Inc.

<PAGE>

         (b) CHANGE OF ACCOUNT. Either party may change its account for
         receiving a payment or delivery by giving notice to the other party at
         least five Local Business Days prior to the scheduled date for the
         payment or delivery to which such change applies unless such other
         party gives timely notice of a reasonable objection to such change.

         (c) NETTING.  If on any date amounts would otherwise be payable:

               (i)   in the same currency; and

               (ii)  in respect of the same Transaction,

         by each party to the other, then, on such date, each party's obligation
         to make payment of any such amount will be automatically satisfied and
         discharged and, if the aggregate amount that would otherwise have been
         payable by one party exceeds the aggregate amount that would otherwise
         have been payable by the other party, replaced by an obligation upon
         the party by whom the larger aggregate amount would have been payable
         to pay to the other party the excess of the larger aggregate amount
         over the smaller aggregate amount.

         The parties may elect in respect of two or more Transactions that a net
         amount will be determined in respect of all amounts payable on the same
         date in the same currency in respect of such Transactions, regardless
         of whether such amounts are payable in respect of the same Transaction.
         The election may be made in the Schedule or a Confirmation by
         specifying that subparagraph (ii) above will not apply to the
         Transactions identified as being subject to the election, together with
         the starting date (in which case subparagraph (ii) above will not, or
         will cease to, apply to such Transactions from such date). This
         election may be made separately for different groups of Transactions
         and will apply separately to each pairing of branches or offices
         through which the parties make and receive payments or deliveries.

         (d) DEFAULT INTEREST;  OTHER AMOUNTS.  Prior to the occurrence or
         effective designation of an Early Termination Date in respect of the
         relevant Transaction, a party that defaults in the performance of any
         payment obligation will, to the extent permitted by law and subject to
         Section 6(c), be required to pay interest (before as well as after
         judgment) on the overdue amount to the other party on demand in the
         same currency as such overdue amount, for the period from (and
         including) the original due date for payment to (but excluding) the
         date of actual payment, at the Default Rate. Such interest will be
         calculated on the basis of daily compounding and the actual number of
         days elapsed. If, prior to the occurrence or effective designation of
         an Early Termination Date in respect of the relevant Transaction, a
         party defaults in the performance of any obligation required to be
         settled by delivery, it will compensate the other party on demand if
         and to the extent provided for in the relevant Confirmation or
         elsewhere in this Agreement.

3.       REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered
into) that:

         (a) BASIC REPRESENTATIONS.

               (i)   STATUS.  It is duly organized and validly existing under
                     the laws of the jurisdiction of its organization or
                     incorporation and, if relevant under such laws, in good
                     standing;

               (ii)  POWERS. It has the power to execute this Agreement
                     and any other documentation relating to this Agreement to
                     which it is a party, to deliver this Agreement and any
                     other documentation relating to this Agreement that it is
                     required by this Agreement to deliver and to perform its
                     obligations under this Agreement and any obligations it has
                     under any Credit Support Document to which it is a party
                     and has taken all necessary action to authorize such
                     execution, delivery and performance;

               (iii) NO VIOLATION OR CONFLICT. Such execution, delivery and
                     performance do not violate or conflict with any law
                     applicable to it, any provision of its constitutional
                     documents, any order or judgment of any court or other
                     agency of government applicable to it or any of its assets
                     or any contractual restriction binding on or affecting it
                     or any of its assets;

                                       2

<PAGE>

               (iv)  CONSENTS. All governmental and other consents that are
                     required to have been obtained by it with respect to this
                     Agreement or any Credit Support Document to which it is a
                     party have been obtained and are in full force and effect
                     and all conditions of any such consents have been complied
                     with; and

               (v)   OBLIGATIONS BINDING. Its obligations under this Agreement
                     and any Credit Support Document to which it is a party
                     constitute its legal, valid and binding obligations,
                     enforceable in accordance with their respective terms
                     (subject to applicable bankruptcy, reorganization,
                     insolvency, moratorium or similar laws affecting creditors'
                     rights generally and subject, as to enforceability, to
                     equitable principles of general application (regardless of
                     whether enforcement is sought in a proceeding in equity or
                     at law)).

         (b) ABSENCE OF CERTAIN EVENTS. No Event of Default or Potential
         Event of Default or, to its knowledge, Termination Event with respect
         to it has occurred and is continuing and no such event or circumstance
         would occur as a result of its entering into or performing its
         obligations under this Agreement or any Credit Support document to
         which it is a party.

         (c) ABSENCE OF LITIGATION. There is not pending or, to its
         knowledge, threatened against it or any of its Affiliates any action,
         suit or proceeding at law or in equity or before any court, tribunal,
         governmental body, agency or official or any arbitrator that is likely
         to affect the legality, validity or enforceability against it of this
         Agreement or any Credit Support Document to which it is a party or its
         ability to perform its obligations under this Agreement or such Credit
         Support Document.

         (d) ACCURACY OF SPECIFIED INFORMATION. All applicable information
         that is furnished in writing by or on behalf of it to the other party
         and is identified for the purpose of this Section 3(d) in the Schedule
         is, as of the date of the information, true, accurate and complete in
         every material respect.

4.       AGREEMENTS

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party;

         (a) FURNISH SPECIFIED INFORMATION.  It will deliver to the other party
         any forms, documents or certificates specified in the Schedule or any
         Confirmation by the date specified in the Schedule or such Confirmation
         or, if none is specified, as soon as reasonably practicable.

         (b) MAINTAIN AUTHORIZATIONS. It will use all reasonable efforts to
         maintain in full force and effect all consents of any governmental or
         other authority that are required to be obtained by it with respect to
         this Agreement or any Credit Support Document to which it is a party
         and will use all reasonable efforts to obtain any that may become
         necessary in the future.

         (c) COMPLY WITH LAWS. It will comply in all material respects with all
         applicable laws and orders to which it may be subject if failure so to
         comply would materially impair its ability to perform its obligations
         under this Agreement or any Credit Support Document to which it is a
         party.

5.       EVENTS OF DEFAULT AND TERMINATION EVENTS

         (a) EVENTS OF DEFAULT. The occurrence at any time with respect to a
         party or, if applicable, any Credit Support Provider of such party or
         any Specified Entity of such party of any of the following events
         constitutes an event of default (an "Event of Default") with respect to
         such party;

               (i)   FAILURE TO PAY OR DELIVER. Failure by the party to make,
                     when due, any payment under this Agreement or delivery
                     under Section 2(a)(i) or 2(d) required to be made by it if
                     such failure is not remedied on or before the third Local
                     Business Day after notice of such failure is given to the
                     party;

               (ii)  BREACH OF AGREEMENT.  Failure by the party to comply with
                     or perform any agreement or obligation (other than an
                     obligation to make any payment under this Agreement or
                     delivery

                                       3

<PAGE>
                     under Section 2(a)(i) or 2(d) or to give notice of a
                     Termination Event) to be complied with or performed by the
                     party in accordance with this Agreement if such failure is
                     not remedied on or before the thirtieth day after notice of
                     such failure is given to the party;

               (iii) CREDIT SUPPORT DEFAULT.

                     (1)  failure by the party or any Credit Support Provider
                          of such party to comply with or perform any agreement
                          or obligation to be complied with or performed by it
                          in accordance with any Credit Support Document if such
                          failure is continuing after any applicable grace
                          period has elapsed;

                     (2)  the expiration or termination of such Credit Support
                          Document or the failing or ceasing of such Credit
                          Support Document to be in full force and effect for
                          the purpose of this Agreement (in either case other
                          than in accordance with its terms) prior to the
                          satisfaction of all obligations of such party under
                          each Transaction to which such Credit Support Document
                          relates without the written consent of the other
                          party; or

                     (3)  the party or such Credit Support Provider disaffirms,
                          disclaims, repudiates or rejects, in whole or in part,
                          or challenges the validity of, such Credit Support
                          Document;

               (iv)  MISREPRESENTATION. A representation made or repeated
                     or deemed to have been made or repeated by the party or any
                     Credit Support Provider of such party in this Agreement or
                     any Credit Support Document proves to have been incorrect
                     or misleading in any material respect when made or repeated
                     or deemed to have been made or repeated;

               (v)   DEFAULT UNDER SPECIFIED TRANSACTION.  The party, any
                     Credit Support Provider of such party or any applicable
                     Specified Entity of such party (1) defaults under a
                     Specified Transaction and, after giving effect to any
                     applicable notice requirement or grace period, there occurs
                     a liquidation of, an acceleration of obligations under, or
                     an early termination of, that Specified Transaction, (2)
                     defaults, after giving effect to any applicable notice
                     requirement or grace period, in making any payment or
                     delivery due on the last payment, delivery or exchange date
                     of, or any payment on early termination of, a Specified
                     Transaction (or such default continues for at least three
                     Local Business Days if there is no applicable notice
                     requirement or grace period) or (3) disaffirms, disclaims,
                     repudiates or rejects, in whole or in part, a Specified
                     Transaction (or such action is taken by any person or
                     entity appointed or empowered to operate it or act on its
                     behalf);

               (vi)  CROSS DEFAULT.  If "Cross Default" is specified in the
                     Schedule as applying to the party, the occurrence or
                     existence of (1) a default, event of default or other
                     similar condition or event (however described) in respect
                     of such party, any Credit Support Provider of such party or
                     any applicable Specified Entity of such party under one or
                     more agreements or instruments relating to Specified
                     Indebtedness of any of them (individually or collectively)
                     in an aggregate amount of not less than the applicable
                     Threshold Amount (as specified in the Schedule) which has
                     resulted in such Specified Indebtedness becoming, or
                     becoming capable at such time of being declared, due and
                     payable under such agreements or instruments, before it
                     would otherwise have been due and payable or (2) a default
                     by such party, such Credit Support Provider or such
                     Specified Entity (individually or collectively) in making
                     one or more payments on the due date thereof in an
                     aggregate amount of not less than the applicable Threshold
                     Amount under such agreements or instruments (after giving
                     effect to any applicable notice requirement or grace
                     period);

               (vii) BANKRUPTCY. The party, any Credit Support Provider of
                     such party or any applicable Specified Entity of such
                     party:

                     (1)  is dissolved (other than pursuant to a consolidation,
                          amalgamation or merger); (2) becomes insolvent or is
                          unable to pay its debts or fails or admits in writing
                          its inability generally to pay its debts as they
                          become due; (3) makes a general assignment,
                          arrangement or composition with or for the benefit of
                          its creditors; (4) institutes or has instituted
                          against it a proceeding seeking a judgment of
                          insolvency or bankruptcy or any other relief under any
                          bankruptcy or insolvency law or other similar law
                          affecting

                                       4

<PAGE>
                          creditors' rights, or a petition is present for its
                          winding-up or liquidation, and, in the case of any
                          such proceeding or petition instituted or presented
                          against it, such proceeding or petition (A) results in
                          a judgment of insolvency or bankruptcy or the entry of
                          an order for relief or the making of an order for its
                          winding-up or liquidation or (B) is not dismissed,
                          discharged, stayed or restrained in each case within
                          30 days of the institution or presentation thereof;
                          (5) has a resolution passed for its winding-up,
                          official management or liquidation (other than
                          pursuant to a consolidation, amalgamation or merger);
                          (6) seeks or becomes subject to the appointment of an
                          administrator, provisional liquidator, conservator,
                          receiver, trustee, custodian or other similar official
                          for it or for all or substantially all its assets; (7)
                          has a secured party take possession of all or
                          substantially all its assets or has a distress,
                          execution, attachment, sequestration or other legal
                          process levied, enforced or sued on or against all or
                          substantially all its assets and such secured party
                          maintains possession, or any such process is not
                          dismissed, discharged, stayed or restrained, in each
                          case within 30 days thereafter; (8) causes or is
                          subject to any event with respect to it which, under
                          the applicable laws of any jurisdiction, has an
                          analogous effect to any of the events specified in
                          clauses (1) to (7) (inclusive); or (9) takes any
                          action in furtherance of, indicating its consent to,
                          approval of, or acquiescence in, any of the foregoing
                          acts; or

               (viii) MERGER WITHOUT ASSUMPTION. The party or any Credit Support
                      Provider of such party consolidates or amalgamates with,
                      or merges with or into, or transfers all or substantially
                      all its assets to, another entity and, at the time of such
                      consolidation, amalgamation, merger or transfer:

                     (1)  the resulting, surviving or transferee entity fails
                          to assume all the obligations of such party or such
                          Credit Support Provider under this Agreement or any
                          Credit Support Document to which it or its predecessor
                          was a party by operation of law or pursuant to an
                          agreement reasonably satisfactory to the other party
                          to this Agreement; or

                     (2)  the benefits of any Credit Support Document fail to
                          extend (without the consent of the other party) to the
                          performance by such resulting, surviving or transferee
                          entity of its obligations under this Agreement.

         (b) TERMINATION EVENTS. The occurrence at any time with respect to a
         party or, if applicable, any Credit Support Provider of such party or
         any Specified Entity of such party of any event specified below
         constitutes an Illegality if the event is specified in (i) below, and,
         if specified to be applicable, a Credit Event Upon Merger if the event
         is specified pursuant to (ii) below or an Additional Termination Event
         if the event is specified pursuant to (iii) below:

                  (i) ILLEGALITY. Due to the adoption of, or any change in,  any
                      applicable law after the date on which a Transaction is
                      entered into, or due to the promulgation of, or any change
                      in, the interpretation by any court, tribunal or
                      regulatory authority with competent jurisdiction of any
                      applicable law after such date, it becomes unlawful (other
                      than as a result of a breach by the party of Section 4(b))
                      for such party (which will be the Affected Party):

                     (1)  to perform any absolute or contingent obligation to
                          make a payment or delivery or to receive a payment or
                          delivery in respect of such Transaction or to comply
                          with any other material provision of this Agreement
                          relating to such Transaction; or

                     (2)  to perform, or for any Credit Support Provider of
                          such party to perform, any contingent or other
                          obligation which the party (or such Credit Support
                          Provider) has under any Credit Support Document
                          relating to such Transaction;

                 (ii) CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger"
                      is specified in the Schedule as applying to the party,
                      such party ("X"), any Credit Support Provider of X or any
                      applicable Specified Entity of X consolidates or
                      amalgamates with, or merges with or into, or transfers all
                      or substantially all its assets to, another entity and
                      such action does not constitute an event described in
                      Section 5(a)(viii) but the creditworthiness of the
                      resulting, surviving or transferee entity is materially
                      weaker than that of X, such Credit Support Provider or
                      such Specified Entity,

                                       5
<PAGE>

                      as the case may be, immediately prior to such action (and,
                      in such event, X or its successor or transferee, as
                      appropriate, will be the Affected Party); or

                (iii) ADDITIONAL TERMINATION EVENT. If any "Additional
                      Termination Event" is specified in the Schedule or any
                      Confirmation as applying, the occurrence of such event
                      (and, in such event, the Affected Party or Affected
                      Parties shall be as specified for such Additional
                      Termination Event in the Schedule or such Confirmation).

         (c) EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which
         would otherwise constitute or give rise to an Event of Default also
         constitutes an illegality, it will be treated as an illegality and will
         not constitute an Event of Default.

6.       EARLY TERMINATION

         (a) RIGHT TO TERMINATE FOLLOWING EVENT OF DEFAULT.  If at any time an
         Event of Default with respect to a party (the "Defaulting Party") has
         occurred and is then continuing, the other party (the "Non-defaulting
         Party") may, by not more than 20 days notice to the Defaulting Party
         specifying the relevant Event of Default, designate a day not earlier
         than the day such notice is effective as an Early Termination Date in
         respect of all outstanding Transactions. If, however, "Automatic Early
         Termination" is specified in the Schedule as applying to a party, then
         an Early Termination Date in respect of all outstanding Transactions
         will occur immediately upon the occurrence with respect to such party
         of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6)
         or, to the extent analogous thereof, (8), and as of the time
         immediately preceding the institution of the relevant proceeding or the
         presentation of the relevant petition upon the occurrence with respect
         to such party of an Event of Default specified in Section 5(a)(vii)(4)
         or, to the extent analogous thereto, (8).

         (b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

               (i)   NOTICE. If a Termination Event occurs, an Affected Party
               will, promptly upon becoming aware of it, notify the other
               party, specifying the nature of that Termination Event and each
               Affected Transaction and will also give such other information
               about that Termination Event as the other party may reasonably
               require.

               (ii)   TWO AFFECTED PARTIES. If an Illegality under Section
               5(b)(i)(1) occurs and there are two Affected Parties, each party
               will use all reasonable efforts to reach agreement within 30
               days after notice thereof is given under Section 6(b)(i) on
               action to avoid that Termination Event.

               (iii)  RIGHT TO TERMINATE.  If:

                     (1) an agreement under Section 6(b)(ii) has not been
                         effected with respect to all Affected Transactions
                         within 30 days after an Affected Party gives notice
                         under Section 6(b)(i); or

                     (2) an Illegality other than that referred to in Section
                         6(b)(ii), a Credit Event Upon Merger or an Additional
                         Termination Event occurs,

                     either party in the case of an Illegality, any Affected
                     Party in the case of an Additional Termination Event if
                     there is more than one Affected Party, or the party which
                     is not the Affected Party in the case of a Credit Event
                     Upon Merger or an Additional Termination Event if there is
                     only one Affected Party may, by not more than 20 days
                     notice to the other party and provided that the relevant
                     Termination Event is then continuing, designate a day not
                     earlier than the day such notice is effective as an Early
                     Termination Date in respect of all Affected Transactions.

        (c)  EFFECT OF DESIGNATION.

               (i)   If notice designating an Early Termination Date is given
                     under Section 6(a) or (b), the Early Termination Date will
                     occur on the date so designated, whether or not the
                     relevant Event of Default or Termination is then
                     continuing.

                                       6

<PAGE>

               (ii)  Upon the occurrence or effective designation of an Early
                     Termination Date, no further payments or deliveries under
                     Section 2(a)(i) or 2(d) in respect of the Terminated
                     Transactions will be required to be made, but without
                     prejudice to the other provisions of this Agreement. The
                     amount, if any, payable in respect of an Early Termination
                     Date shall be determined pursuant to Section 6(e).

         (d)  CALCULATIONS.

               (i)   STATEMENT.  On or as soon as reasonably practicable
                     following the occurrence of an Early Termination Date, each
                     party will make the calculations on its part, if any,
                     contemplated by Section 6(e) and will provide to the other
                     party a statement (1) showing, in reasonable detail, such
                     calculations (including all relevant quotations and
                     specifying any amount payable under Section 6(e)) and (2)
                     giving details of the relevant account to which any amount
                     payable to it is to be paid. In the absence of written
                     confirmation from the source of a quotation obtained in
                     determining a Market Quotation, the records of the party
                     obtaining such quotation will be conclusive evidence of the
                     existence and accuracy of such quotation.

               (ii)  PAYMENT DATE.  An amount calculated as being due in
                     respect of any Early Termination Date under Section 6(e)
                     will be payable on the day that notice of the amount
                     payable is effective (in the case of an Early Termination
                     Date which is designated or occurs as a result of an Event
                     of Default) and on the day which is two Local Business Days
                     after the day on which notice of the amount payable is
                     effective (in the case of an Early Termination Date which
                     is designated as a result of a Termination Event). Such
                     amount will be paid together with (to the extent permitted
                     under applicable law) interest thereon (before as well as
                     after judgment), from (and including) the relevant Early
                     Termination Date to (but excluding) the date such amount is
                     paid, at the Applicable Rate. Such interest will be
                     calculated on the basis of daily compounding and the actual
                     number of days elapsed.

         (e)  PAYMENTS ON EARLY TERMINATION. If an Early Termination Date
         occurs, the following provisions shall apply based on the parties'
         election in the Schedule of a payment measure, either "Market
         Quotation" or "Loss", and a payment method, either the "First Method"
         or the "Second Method". If the parties fail to designate a payment
         measure or payment method in the Schedule, it will be deemed that
         "Market Quotation" or the "Second Method", as the case may be, shall
         apply. The amount, if any, payable in respect of an Early Termination
         Date and determined pursuant to this Section will be subject to any
         Set-off.

               (i)   EVENTS OF DEFAULT.  If the Early Termination Date results
                     from an Event of Default:

                     (1) FIRST METHOD AND MARKET QUOTATION. If the First Method
                         and Market Quotation apply, the Defaulting Party will
                         pay to the Non-defaulting Party the excess, if a
                         positive number, of (A) the sum of the Settlement
                         Amount (determined by the Non-defaulting Party) in
                         respect of the Terminated Transactions and the Unpaid
                         Amounts owing to the Non-defaulting Party over (B) the
                         Unpaid Amounts owing to the Defaulting Party.

                     (2) FIRST METHOD AND LOSS.  If the First Method and Loss
                         apply, the Defaulting Party will pay to the
                         Non-defaulting Party, if a positive number, the
                         Non-defaulting Party's Loss in respect of this
                         Agreement.

                     (3) SECOND METHOD AND MARKET QUOTATION.  If the Second
                         Method and Market Quotation apply, an amount will be
                         payable equal to (A) the sum of the Settlement Amount
                         (determined by the Non-defaulting Party) in respect of
                         the Terminated Transactions and the Unpaid Amounts
                         owing to the Non-defaulting Party less (B) the Unpaid
                         Amounts owing to the Defaulting Party. If that amount
                         is a positive number, the Defaulting Party will pay it
                         to the Non-defaulting Party; if it is a negative
                         number, the Non-defaulting Party will pay the absolute
                         value of that amount to the Defaulting Party.

                     (4) SECOND METHOD AND LOSS.  If the Second Method and Loss
                         apply, an amount will be payable equal to the
                         Non-defaulting Party's Loss in respect of this
                         Agreement. If that amount is a positive number, the
                         Defaulting Party will pay it to the Non-defaulting

                                       7

<PAGE>

                         Party; if it is a negative number, the Non-defaulting
                         Party will pay the absolute value of that amount to the
                         Defaulting Party.

               (ii)  TERMINATION EVENTS.  If the Early Termination Date results
                     from a Termination Event:

                     (1) ONE AFFECTED PARTY.  If there is one Affected Party,
                         the amount payable will be determined in accordance
                         with Section 6(e)(i)(3), if Market Quotation applies,
                         or Section 6(e)(i)(4), if Loss applies, except that, in
                         either case, references to the Defaulting Party and to
                         the Non-defaulting Party will be deemed to be
                         references to the Affected Party and the party which is
                         not the Affected Party, respectively, and, if Loss
                         applies and fewer than all the Transactions are being
                         terminated, Loss shall be calculated in respect of all
                         Terminated Transactions.

                     (2) TWO AFFECTED PARTIES.  If there are two Affected
                         Parties:

                         (A) If Market Quotation applies, each party will
                             determine a Settlement Amount in respect of the
                             Terminated Transactions, and an amount will be
                             payable equal to (I) the sum of (a) one-half of the
                             difference between the Settlement Amount of the
                             party with the higher Settlement Amount ("X") and
                             the Settlement Amount of the party with the lower
                             Settlement Amount ("Y") and (b) the Unpaid Amounts
                             owing to X less (II) the Unpaid Amounts owing to Y;
                             and

                         (B) If Loss applies, each party will determine its
                             Loss in respect of this Agreement (or, if fewer
                             than all the Transactions are being terminated, in
                             respect of all Terminated Transactions) and an
                             amount will be payable equal to one-half of the
                             difference between the Loss of the party with the
                             higher Loss ("X") and the Loss of the party with
                             the lower Loss ("Y").

                             If the amount payable is a positive number, Y will
                             pay it to X; if it is a negative number, X will pay
                             the absolute value of that amount to Y.

               (iii) ADJUSTMENT FOR BANKRUPTCY. In circumstances where an
                     Early Termination Date occurs because "Automatic Early
                     Termination" applies in respect of a party, the amount
                     determined under this Section 6(e) will be subject to such
                     adjustments as are appropriate and permitted by law to
                     reflect any payments or deliveries made by one party to the
                     other under this Agreement (and retained by such other
                     party) during the period from the relevant Early
                     Termination Date to the date for payment determined under
                     Section 6(d)(ii).

               (iv)  PRE-ESTIMATE. The parties agree that if Market Quotation
                     applies an amount recoverable under this Section 6(e) is a
                     reasonable pre-estimate of loss and not a penalty. Such
                     amount is payable for the loss of bargain and the loss of
                     protection against future risks and except as otherwise
                     provided in this Agreement neither party will be entitled
                     to recover any additional damages as a consequence of such
                     losses.

7.       TRANSFER

Neither this Agreement nor any interest or obligation in or under this Agreement
may be transferred (whether by way of security or otherwise) by either party
without the prior written consent of the other party, except that:

         (a) a party may make such a transfer of this Agreement pursuant to a
         consolidation or amalgamation with, or merger with or into, or transfer
         of all or substantially all its assets to, another entity (but without
         prejudice to any other right or remedy under this Agreement); and

         (b) a party may make such a transfer of all or any part of its interest
         in any amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

                                       8

<PAGE>

8.       MISCELLANEOUS

         (a) ENTIRE AGREEMENT.  This Agreement constitutes the entire agreement
         and understanding of the parties with respect to its subject matter and
         supersedes all oral communication and prior writings with respect
         thereto.

         (b) AMENDMENTS. No amendment modification or waiver in respect of this
         Agreement will be effective unless in writing (including a writing
         evidence by a facsimile transmission) and executed by each of the
         parties or confirmed by an exchange of telexes or electronic messages
         on an electric messaging system.

         (c) SURVIVAL OF OBLIGATIONS.  Without prejudice to Sections 2(a)(iii)
         and 6(c)(ii), the obligations of the parties under this Agreement will
         survive the termination of any Transaction.

         (d) REMEDIES CUMULATIVE.  Except as provided in this Agreement, the
         rights, powers, remedies and privileges provided in this Agreement are
         cumulative and not exclusive of any rights, powers, remedies and
         privileges provided by law.

         (e) COUNTERPARTS AND CONFIRMATIONS.

               (i)   This Agreement (and each amendment, modification, and
                     waiver in respect of it) may be executed and delivered in
                     counterparts (including by facsimile transmission), each of
                     which will be deemed an original.

               (ii)  The parties intend that they are legally bound by the
                     terms of each Transaction from the moment they agree to
                     those terms (whether orally or otherwise). A Confirmation
                     shall be entered into as soon as practicable and may be
                     executed and delivered in counterparts (including by
                     facsimile transmission) or be created by an exchange of
                     telexes or by an exchange of electronic messages on an
                     electronic messaging system, which in each case will be
                     sufficient for all purposes to evidence a binding
                     supplement to this Agreement. The parties will specify
                     therein or through another effective means that any such
                     counterpart, telex or electronic message constitutes a
                     Confirmation.

         (f) NO WAIVER OF RIGHTS. A failure or delay in exercising any right,
         power or privilege in respect of this Agreement will not be presumed to
         operate as a waiver, and a single or partial exercise of any right
         power or privilege will not be presumed to preclude any subsequent or
         further exercise, of that right power or privilege or the exercise of
         any other right power or privilege.

         (g) HEADINGS. The headings used in this Agreement are for convenience
         of reference only and are not to affect the construction of or to be
         taken into consideration in interpreting this Agreement.

9.       EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees,
incurred by such other party by reason of the enforcement and protection of its
rights under this Agreement or any Credit Support Document to which the
Defaulting Party is a party or by reason of the early termination of any
Transaction, including, but not limited to, costs of collection.

10.      NOTICES

         (a) EFFECTIVENESS. Any notice or other communication in respect of this
         Agreement may be given in any manner set forth below (except that a
         notice or other communication under Section 5 or 6 may not be given by
         facsimile transmission or electronic messaging system) to the address
         or number or in accordance with the electronic messaging system details
         provided (see the Schedule) and will be deemed effective as indicated:

               (i)   if in writing and delivered in person or by courier on the
                     date it is delivered;

               (ii)  if sent by telex, on the day the recipient's answerback is
                     received;

                                       9

<PAGE>

               (iii) if sent by facsimile transmission, on the date that
                     transmission is received by a responsible employee of the
                     recipient in legible form (it being agreed that the burden
                     of proving receipt will be on the sender and will not be
                     met by a transmission report generated by the sender's
                     facsimile machine);

               (iv)  if sent by certified or registered mail (airmail, if
                     overseas) or the equivalent (return receipt requested), on
                     the date that mail is delivered or its delivery is
                     attempted; or

               (v)   if sent by electronic messaging system, on the date that
                     electronic message is received,

         unless the date of that delivery (or attempted delivery) or that
         receipt, as applicable, is not a Local Business Day or that
         communication is delivered (or attempted) or received, as applicable,
         after the close of business on a Local Business Day, in which case that
         communication shall be deemed given and effective on the first
         following day that is a Local Business Day.

         (b) CHANGE OF ADDRESSES. Either party may by notice to the other change
         the address, telex or facsimile number or electronic messaging system
         details at which notices or other communications are to be given to it.

11.      GOVERNING LAW AND JURISDICTION

         (a) GOVERNING LAW.  This Agreement will be governed by and construed in
         accordance with the law specified in the Schedule.

         (b) JURISDICTION.  With respect to any suit, action or proceedings
         relating to this Agreement ("Proceedings"), each party irrevocably:

               (i)   submits to the jurisdiction of the English courts, if
                     this Agreement is expressed to be governed by English law,
                     or to the non-exclusive jurisdiction of the courts of the
                     State of New York and the United States District Court
                     located in the Borough of Manhattan in New York City, if
                     this Agreement is expressed to be governed by the laws of
                     the State of New York; and

               (ii)  waives any objection which it may have at any time to
                     the laying of venue of any Proceedings brought in any such
                     court, waives any claim that such Proceedings have been
                     brought in an inconvenient forum and further waives the
                     right to object, with respect to such Proceedings, that
                     such court does not have any jurisdiction over such party.

         Nothing in this Agreement precludes either party from bringing
         Proceedings in any other jurisdiction (outside, if this Agreement is
         expressed to be governed by English law, the Contracting States, as
         defined in Section 1(3) of the Civil Jurisdiction and Judgments Act
         1982 or any modification, extension or re-enactment thereof for the
         time being in force) nor will the bringing of Proceedings in any one or
         more jurisdictions preclude the bringing of Proceedings in any other
         jurisdiction.

         (c) WAIVER OF IMMUNITIES.  Each party irrevocably waives, to the
         fullest extent permitted by applicable law, with respect to itself and
         its revenues and assets (irrespective of their use or intended use),
         all immunity on the grounds of sovereignty or other similar grounds
         from (i) suit, (ii) jurisdiction of any court, (iii) relief by way of
         injunction, order for specific performance or for recovery of property,
         (iv) attachment of its assets (whether before or after judgment) and
         (v) execution or enforcement of any judgment to which it or its
         revenues or assets might otherwise be entitled in any Proceedings in
         the courts of any jurisdiction and irrevocably agrees, to the extent
         permitted by applicable law, that it will not claim any such immunity
         in any Proceedings.

12.      DEFINITIONS

As used in this Agreement:

"ADDITIONAL TERMINATION EVENT" has the meaning specified in Section 5(b).

"AFFECTED PARTY" has the meaning specified in Section 5(b).

                                       10

<PAGE>

"AFFECTED TRANSACTIONS" means (a) with respect to any Termination Event
consisting of an Illegality, all Transactions affected by the occurrence of such
Termination Event and (b) with respect to any other Termination Event, all
Transactions.

"AFFILIATE" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"APPLICABLE RATE" means:

               (a)   in respect of obligations payable or deliverable (or which
                     would have been but for Section 2(a)(iii)) by a Defaulting
                     Party, the Default Rate;

               (b)   in respect of an obligation to pay an amount under Section
                     6(e) of either party from and after the date (determined in
                     accordance with Section 6(d)(ii)) on which that amount is
                     payable, the Default Rate;

               (c)   in respect of all other obligations payable or deliverable
                     (or which would have been but for Section 2(a)(iii)) by a
                     Non-defaulting Party, the Non-default Rate; and

               (d)   in all other cases, the Termination Rate.

"CONSENT" includes a consent, approval, action, authorization, exemption,
notice, filing, registration or exchange control consent.

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

"DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

"DEFAULTING PARTY" has the meaning specified in Section 6(a).

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(b)(iii).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"ILLEGALITY" has the meaning specified in Section 5(b).

"LAW" includes any treaty, law, rule or regulation and "lawful" and "unlawful"
will be construed accordingly.

"LOCAL BUSINESS DAY" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice provided
by the recipient and, in the case of a notice contemplated by Section 2(b), in
the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to
such Specified Transaction.

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which
case expressed as a negative number) in connection with this Agreement or that
Terminated Transaction or group of Terminated Transactions, as the case may be,
including any loss of bargain, cost of funding or, at the election of such party
but without duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position
(or any gain resulting from any of them). Loss includes losses and costs (or
gains) in respect of any payment or

                                       11

<PAGE>

delivery required to have been made (assuming satisfaction of each applicable
condition precedent) on or before the relevant Early Termination Date and not
made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or
6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 9. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date. For this
purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment
or delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction would
be subject to such documentation as such party and the Reference Market-maker
may, in good faith, agree. The party making the determination (or its agent)
will request each Reference Market-maker to provide its quotation to the extent
reasonably practicable as of the same day and time (without regard to different
time zones) on or as soon as reasonably practicable after the relevant Early
Termination Date. The day and time as of which those quotations are to be
obtained will be selected in good faith by the party obliged to make a
determination under Section 6(e), and, if each party is so obliged, after
consultation with the other. If more than three quotations are provided, the
Market Quotation will be the arithmetic mean of the quotations, without regard
to the quotations having the highest and lowest values. If exactly three such
quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more
than one quotation has the same highest value or lowest value, then one of such
quotations shall be disregarded. If fewer than three quotations are provided, it
will be deemed that the Market Quotation in respect of such Terminated
Transaction or group of Terminated Transactions cannot be determined.

"NON-DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

"POTENTIAL EVENT OF DEFAULT" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

"REFERENCE MARKET-MAKERS" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"SET-OFF" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

"SETTLEMENT AMOUNT" means with respect to a party and any Early Termination
Date, the sum of:

               (a)   The Market Quotations (whether positive or negative) for
                     each Terminated Transaction or group of Terminated
                     Transactions for which a Market Quotation is determined;
                     and

                                       12

<PAGE>

               (b)   such party's Loss (whether positive or negative and without
                     reference to any Unpaid Amounts) for each Terminated
                     Transaction or group of Terminated Transactions for which
                     Market Quotation cannot be determined or would not (in the
                     reasonable belief of the party making the determination)
                     produce a commercially reasonable result.

"SPECIFIED ENTITY" has the meaning specified in the Schedule.

"SPECIFIED INDEBTEDNESS" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"SPECIFIED TRANSACTION" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"TERMINATED TRANSACTIONS" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"TERMINATION EVENT" means an Illegality or, if specified to be applicable, a
Credit Event Upon Merger or an Additional Termination Event.

"TERMINATION RATE" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"UNPAID AMOUNTS" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market value of that which was (or would have been) required to be
delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to
(but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and the
actual number of days elapsed. The fair market value of any obligation referred
to in clause (b) above shall be reasonably determined by the party obliged to
make the determination under Section 6(e) or, if each party is so obliged, it
shall be the average of the fair market values reasonably determined by both
parties.

                           [SIGNATURE PAGE TO FOLLOW]

                                       13

<PAGE>

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

U.S. BANK                                   EXTENDICARE HEALTH SERVICES, INC.
NATIONAL ASSOCIATION

By:                                         By:
   ---------------------------------------     ---------------------------------
Name:                                       Name:
         ---------------------------------       -------------------------------
Title:                                      Title:
         ---------------------------------        ------------------------------
Date:                                       Date:
         ---------------------------------       -------------------------------

                                       14
<PAGE>

(Local Currency-Single Jurisdiction)

                        SCHEDULE TO THE MASTER AGREEMENT
                           DATED AS OF APRIL 16, 2004
                                     BETWEEN
                   U.S. BANK NATIONAL ASSOCIATION ("PARTY A")
                                       AND
                  EXTENDICARE HEALTH SERVICES, INC. ("PARTY B")

Part 1:  TERMINATION PROVISIONS AND CERTAIN OTHER MATTERS

         (a)      "SPECIFIED ENTITY" means, in relation to Party A, for the
                  purpose of:

SECTION 5(a)(v), none;

SECTION 5(a)(vi), none;

SECTION 5(a)(vii), none; and

SECTION 5(b)(ii), none;

                  and, in relation to Party B, for the purpose of:

SECTION 5(a)(v), All Affiliates;

SECTION 5(a)(vi), All Affiliates;

SECTION 5(a)(vii), All Affiliates; and

SECTION 5(b)(ii), All Affiliates.

         (b)      "SPECIFIED TRANSACTION" will have the meaning specified in
                  Section 12 of this Agreement.

         (c)      The "CROSS-DEFAULT" provisions of Section 5(a)(vi) will apply
                  to Party A and Party B.  In connection therewith,

                  "SPECIFIED INDEBTEDNESS" will have the meaning specified in
                  Section 12, except that such term shall not include
                  obligations in respect of deposits received in the ordinary
                  course of a party's banking business, and

                  "THRESHOLD AMOUNT" means, in relation to Party A an amount
                  equal to Ten Million Dollars ($10,000,000.00), and in relation
                  to Party B an amount equal to ($0.00).

                                       1
<PAGE>

         (d)      The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(ii)
                  will apply to Party A and Party B; provided, however, that the
                  phrase "materially weaker" means that the actual or implied
                  Credit Rating of (A) the senior long-term debt of the
                  resulting, surviving or transferee entity is rated less than
                  BBB- by Standard & Poor's Corporation or Baa3 by Moody's
                  Investors Service Inc., or (B) in the event that there are no
                  such Standard & Poor's Corporation or Moody's Investors
                  Service, Inc. ratings, the Policies (as defined below) in
                  effect at the time, of the party which is not the Affected
                  Party, would lead such non-Affected Party, solely as a result
                  of a change in the nature, character, identity or condition of
                  the Affected Party from its state (as a party to this
                  Agreement) prior to such consolidation, amalgamation, merger
                  or transfer, to decline to make an extension of credit to, or
                  enter into a Transaction with, the resulting, surviving or
                  transferee entity. "Policies", for the purposes of this
                  definition means: (x)(i) internal credit limits applicable to
                  individual entities or (ii) other limits on doing business
                  with entities domiciled or doing business in certain
                  jurisdictions or engaging in certain activities, or (y)
                  internal restrictions on doing business with entities with
                  whom the party which is not the Affected Party has had prior
                  adverse business relations.

                           In addition, Section 5(b)(ii) is hereby amended by:

                                    (i)      deleting in the fourth line thereof
                                             the words "another entity" and
                                             replacing them with the words "or
                                             receives all or substantially all
                                             of the assets of another entity or
                                             reorganizes, incorporates,
                                             reincorporates, or reconstitutes
                                             into or as, another entity or X,
                                             such Credit Support Provider, or
                                             such Specified Entity, as the case
                                             may be, effects a recapitalization,
                                             liquidating dividend, leveraged
                                             buy-out, other similar
                                             highly-leveraged transaction,
                                             redemption of indebtedness, or
                                             stock buy-back or similar call on
                                             equity or enters into any agreement
                                             providing for the foregoing."

                                    (ii)     deleting in the fifth line thereof
                                             the words "the resulting, surviving
                                             or transferee" and replacing them
                                             with the words "X or any resulting,
                                             surviving, transferee, reorganized,
                                             or recapitalized", and

                                    (iii)    deleting in the seventh line
                                             thereof the words "its successor or
                                             transferee" and replacing them with
                                             the words " any resulting,
                                             surviving, transferee, reorganized,
                                             or recapitalized entity."

         (e)      The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a)
                  will not apply to Party A.  As to Party B, Automatic Early
                  Termination shall apply.

         (f)      PAYMENTS ON EARLY TERMINATION.  For the purpose of Section
                  6(e) of this Agreement:

                                       2
<PAGE>

                  (i)      Market Quotation will apply.

                  (ii)     The Second Method will apply.

         (g)      ADDITIONAL TERMINATION EVENT will not apply to Party A. As to
                  Party B, an Additional Termination Event shall occur upon (i)
                  termination of any agreements between Party A (or any
                  Affiliate of Party A) and Party B (or any Specified Entity of
                  or Credit Support Provider for Party B), or (ii) any demand
                  for payment under any agreements between Party A (or any
                  Affiliate of Party A) and Party B (or any Specified Entity of
                  or Credit Support Provider for Party B). For the purpose of
                  the foregoing Termination Event, the Affected Party shall be
                  Party B and the non-Affected Party shall be Party A.

Part 2: AGREEMENT TO DELIVER DOCUMENTS

<TABLE>
<CAPTION>

PARTY REQUIRED TO       FORM/DOCUMENT/                               DATE BY WHICH TO BE                COVERED BY SECTION 3(d)
DELIVER DOCUMENT        CERTIFICATE                                  DELIVERED                          REPRESENTATION
<S>                     <C>                                          <C>                                <C>
Party B                 Certified copies of all                      Upon execution and                 Yes
                        resolutions and authorizations and           delivery of this Agreement
                        any other documents with respect
                        to the execution, delivery and
                        performance of this Agreement
                        satisfactory to Party A

Party B                 Certificate of authority and                 Upon execution and                 Yes
                        specimen signatures of individuals           delivery of this Agreement
                        executing this Agreement and                 and thereafter, upon
                        Confirmations                                request of the other Party

Party B                 Consolidated and consolidating               Upon request of Party A            Yes
                        balance sheet and income
                        statements -- quarterly
                        (unaudited) and annually (audited)

Party B                 A cross-collateralization                    Upon execution and                 Yes
                        agreement satisfactory to Party A            delivery of this Agreement
                        from Party B and any Credit Support
                        Providers for Party B, plus all other
                        agreements deemed necessary by Party A
                        to evidence such cross-collateralization
                        satisfactory to Party A

</TABLE>

                                       3
<PAGE>

Part 3.  MISCELLANEOUS

         (a)      ADDRESS FOR NOTICES.  For the Purpose of Section 10(a) of this
                  Agreement:

Any notice shall be delivered to the address or facsimile or telex number
specified in the relevant Confirmation of a Transaction. For Purposes of
Sections 5 and 6 of this Agreement, any notice shall also be delivered to the
following address:

Address for notice or communications to Party A:

         U.S. Bank National Association
         ATTN: Randy Bailey / Derivative Operations
         800 Nicollet Mall
         Mail Location: BC-MN-H18S
         Minneapolis, Minnesota  55402
         (612) 303-4128 Phone
         (612) 303-1353 Fax

Address for notice or communications to Party B:

         Extendicare Health Services, Inc.
         ATTN:  Janet L. Kreilein
         111 West Michigan Street
         Milwaukee, Wisconsin  53203
         (414) 908-8000 Phone
         (414) 908-8088 Fax

         (b)      CALCULATION AGENT.  The Calculation Agent is Party A.

         (c)      CREDIT SUPPORT DOCUMENT. Credit Support Document is not
                  applicable in relation to Party A. Credit Support Document is
                  applicable in relation to Party B and shall mean each
                  agreement and instrument, now or hereafter existing, of any
                  kind or nature which secures, guarantees or otherwise provides
                  direct or indirect assurance of payment or performance of any
                  existing or future obligation of Party B under this Agreement,
                  made by or on behalf of any person or entity (including,
                  without limiting the generality of the foregoing, any credit
                  or loan agreement, note, reimbursement agreement, security
                  agreement, mortgage, pledge agreement, assignment of rents or
                  any other agreement or instrument granting any lien, security
                  interest, assignment, charge or encumbrance to secure any such
                  obligation, any guaranty, suretyship, letter of credit or
                  subordination agreement relating to any such obligation and
                  any "keep well" or other financial support agreement relating
                  to Party B or any Credit Support Provider) in favor of Party A
                  or any of its Affiliates.

         (d)      CREDIT SUPPORT PROVIDER. Credit Support Provider is not
                  applicable in relation to Party A. Credit Support Provider is
                  applicable in relation to Party B and means any

                                       4
<PAGE>

                  person or entity (other than Party B), that now or hereafter
                  secures, guarantees or otherwise provides direct or indirect
                  assurance of payment or performance of any existing or future
                  obligation of Party B under this Agreement or any Credit
                  Support Document, including but not limited to the following
                  persons and/or entities: Extendicare Holdings, Inc.

         (e)      GOVERNING LAW. This Agreement will be governed by and
                  construed in accordance with the laws of the state of New York
                  (without reference to choice of law doctrine).

         (f)      "AFFILIATE" will have the meaning specified in Section 12 of
                  this Agreement.

Part 4. OTHER PROVISIONS

         (a) SET-OFF. Any amount (the "Early Termination Amount") payable to one
party (the "Payee") by the other party (the "Payer") under Section 6(e), in
circumstances where there is a Defaulting Party or one Affected Party in the
case where a Termination Event under Section 5(b)(ii) has occurred, will, at the
option of the party ("X") other than the Defaulting Party or the Affected Party
(and without prior notice to the Defaulting Party or the Affected Party), be
reduced by its set-off against any amount(s) (the "Other Agreement Amount")
payable (whether at such time or in the future or upon the occurrence of a
contingency) by the Payee to the Payer (irrespective of the currency, place of
payment or booking office of the obligation) under any other agreement(s)
between the Payee and the Payer or instrument(s) or undertaking(s) issued or
executed by one party to, or in favor of, the other party (and the Other
Agreement Amount will be discharged promptly and in all respects to the extent
it is so set-off). X will give notice to the other party of any set-off effected
under this section.

For this purpose, either the Early Termination Amount or the Other Agreement
Amount (or the relevant portion of such amounts) may be converted by X into the
currency in which the other is denominated at the rate of exchange at which such
party would be able, acting in a reasonable manner and in good faith, to
purchase the relevant amount of such currency.

If an obligation is unascertained, X may in good faith estimate that obligation
and set-off in respect of the estimate, subject to the relevant party accounting
to the other when the obligation is ascertained.

Nothing in this section shall be effective to create a charge or other security
interest. This section shall be without prejudice and in addition to any right
of set-off, combination of accounts, lien or other right to which a party is at
any time otherwise entitled (whether by operation of law, contract or
otherwise).

         (b) EXCHANGE OF CONFIRMATIONS. For each Transaction entered into
hereunder, Party A shall promptly send to Party B a Confirmation, via telex or
facsimile transmission. Party B agrees to respond to such Confirmation within 5
Business Days, either confirming agreement thereto or requesting a correction of
any error(s) contained therein. Failure by party B to respond within such period
shall not affect the validity or enforceability of such Transaction and shall be
deemed to be an

                                       5
<PAGE>

affirmation of the terms contained in such Confirmation, absent manifest error.
The parties agree that any such exchange of telexes or facsimile transmissions
shall constitute a Confirmation for all purposes hereunder.

         (c) WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

         (d) TELEPHONIC RECORDING. Each party (i) consents to the recording of
the telephone conversations of trading and marketing personnel of the parties
and their Affiliates in connection with this Agreement or any potential
Transaction and (ii) agrees to obtain any necessary consent of, and give notice
of such recording to, such personnel of it and its Affiliates.

         (e) RELATIONSHIP BETWEEN PARTIES. Section 3 of the Agreement is amended
 by adding the following as subsection (e):

         "(e)     RELATIONSHIP BETWEEN PARTIES. Absent a written agreement to
the contrary:

                  (i)      It is not relying on any advice (whether written or
                  oral) of the other party regarding any Transaction, other than
                  the representations expressly made by that other party in this
                  Agreement and in the Confirmation in respect of that
                  Transaction;

                  (ii)     In respect of each Transaction under this Agreement,

                           (l)      it has the capacity to evaluate (internally
                           or through independent professional advice) that
                           Transaction and has made its own decision to enter
                           into that Transaction;

                           (2)      it understands the terms, conditions and
                           risks of that Transaction and is willing to accept
                           those terms and conditions and to assume (financially
                           and otherwise) those risks; and

                           (3)      the other party (a) is not acting as a
                           investment or commodity trading advisor for it; (b)
                           has not given to it (directly or indirectly through
                           any other person) any assurance, guaranty or
                           representation whatsoever as to the merits (either
                           legal, regulatory, tax, financial, accounting or
                           otherwise) of that Transaction or any documentation
                           related thereto; and (c) has not committed to unwind
                           that Transaction."

         (f)      FDIC REQUIREMENTS.

                  (i)      Corporate Authority.  Each party ("X") hereby
         represents and warrants at all times until termination of this
         Agreement that X, by appropriate corporate action, is authorized under
         applicable law to enter into this Agreement, as evidenced by the
         execution

                                       6
<PAGE>

         hereof by an officer of X of the level of vice president or higher.

                  (ii) FIRREA Qualified Financial Contract. Each party
         recognizes and intends that each Transaction entered into under this
         Agreement is, and shall constitute, a "qualified financial contract" as
         that term is defined in Section 212 of the Financial Institutions
         Reform, Recovery and Enforcement Act of 1989, as the same may be
         amended, modified, or supplemented from time to time.

ACCEPTED AND AGREED:

U.S. BANK                                   EXTENDICARE HEALTH SERVICES,
NATIONAL ASSOCIATION                        INC.

By:                                         By:
   --------------------------------            ---------------------------------
Name:                                       Name:
     ------------------------------              -------------------------------
Title:                                      Title:
      -----------------------------               ------------------------------

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]