Document:

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                                                                    EXHIBIT 10.6

                              EQUITY INCENTIVE PLAN

                                       OF

                                MANOR CARE, INC.

                    NON-QUALIFIED STOCK OPTION AGREEMENT (O)

      THIS AGREEMENT, dated as of __________, is made by and between MANOR CARE,
INC., a Delaware corporation hereinafter referred to as "Company", and
_____________, an employee of the Company or a Subsidiary of the Company,
hereinafter referred to as "Optionee":

      WHEREAS, the Company has established the Equity Incentive Plan of Manor
Care, Inc. (the "Plan") (the terms of which are hereby incorporated by reference
and made a part of this Agreement); and

      WHEREAS, Article IV of the Plan provides for the grant of options to
purchase common stock of the Company, par value $.01 per share; and

      WHEREAS, the Compensation Committee of the Company's Board of Directors
(hereinafter referred to as the "Committee"), has determined that it would be to
the advantage and best interest of the Company and its stockholders to grant the
non-qualified option provided for herein to the Optionee as an inducement to
remain in the service of the Company or any of its Subsidiaries (each as defined
hereunder) and as an incentive for increased efforts during such service, and
has advised the Company thereof and instructed the undersigned officer to issue
said Option.

      NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Whenever the following terms are used in this Agreement, they shall have
the meaning specified below unless the context clearly indicates to the
contrary. The masculine pronoun shall include the feminine and neuter, and the
singular the plural, where the context so indicates.

SECTION 1.1 - ADDITIONAL OPTION

      "Additional Option" shall mean an Option granted to the Optionee to
purchase a number

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of shares of Common Stock equal to the number of shares of Common Stock tendered
or relinquished by the Optionee in payment of the exercise price upon exercise
of an Option and/or the number of shares of Common Stock tendered or
relinquished in payment of the amount to be withheld under applicable federal,
state or local income tax laws in connection with the exercise of an Option as
described in Article VI hereof.

SECTION 1.2 - BOARD

      "Board" shall mean the Board of Directors of the Company.

SECTION 1.3 - CODE

      "Code" shall mean the Internal Revenue Code of 1986, as amended.

SECTION 1.4 - COMMON STOCK

      "Common Stock" shall mean the Company's common stock, $.01 par value.

SECTION 1.5 - COMPANY

      "Company" shall mean Manor Care, Inc. In addition, "Company" shall mean
any corporation assuming, or issuing new employee stock options in substitution
for, the Options and Incentive Stock Options (as defined in Sections 1.21 and
1.19 of the Plan, respectively) outstanding under the Plan, in a transaction to
which Section 424(a) of the Code applies.

SECTION 1.6 - EXCHANGE ACT

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

SECTION 1.7 - FAIR MARKET VALUE

      "Fair Market Value" of a share of Common Stock as of a given date shall
be: (a) the closing price of a share of Common Stock on the principal exchange
on which shares of Common Stock are then trading, if any, on the trading day
previous to such date, or, if shares were not traded on the trading day previous
to such date, then on the next preceding date on which a trade occurred, or (b)
if Common Stock is not traded on an exchange but is quoted on NASDAQ or a
successor quotation system, the mean between the closing representative bid and
asked prices for the Common Stock on the trading day previous to such date as
reported by NASDAQ or such successor quotation system, or (c) if Common Stock is
not publicly traded on an exchange and not quoted on NASDAQ or a successor
quotation system, the fair market value established by the Committee acting in
good faith.

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SECTION 1.8 - OFFICER

      "Officer" shall mean an officer of the Company, as defined in Rule
16a-1(f) under the Exchange Act, as such Rule may be amended in the future.

SECTION 1.9 - OPTION

      "Option" shall mean the Non-Qualified Option (as defined in Section 1.20
of the Plan) to purchase Common Stock as granted under this Agreement.

SECTION 1.10 - PLAN

      "Plan" shall mean the Equity Incentive Plan of Manor Care, Inc., as
further amended from time to time.

SECTION 1.11 - RULE 16B-3

      "Rule 16b-3" shall mean that certain Rule 16b-3 under the Exchange Act, as
such rule may be amended in the future.

SECTION 1.12 - SECRETARY

      "Secretary" shall mean the Secretary of the Company.

SECTION 1.13 - SECURITIES ACT

      "Securities Act" shall mean the Securities Act of 1933, as amended.

SECTION 1.14 - SUBSIDIARY

      "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. "Subsidiary" shall also mean any partnership
in which the Company and/or any Subsidiary owns more than 50% of the capital or
profits interests.

SECTION 1.15 - TERMINATION OF EMPLOYMENT

      "Termination of Employment" shall mean the time when the employee-employer
relationship between the Optionee and the Company or any Subsidiary is
terminated for any reason, with or without cause, including, but not by way of
limitation, a termination by resignation, discharge, death, disability or
retirement; but excluding (a) a termination where there is a simultaneous
reemployment or continuing employment of the Optionee by the Company or any
Subsidiary, (b) at the discretion of the Committee, a termination which results
in a temporary

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severance of the employee-employer relationship, and (c) at the discretion of
the Committee, a termination which is followed by the simultaneous establishment
of a consulting relationship by the Company or a Subsidiary with the Optionee.
The Committee, in its absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Employment, including, but not
by way of limitation, the question of whether a Termination of Employment
resulted from a discharge for good cause, and all questions of whether a
particular leave of absence constitutes a Termination of Employment.

                                   ARTICLE II

                                 GRANT OF OPTION

SECTION 2.1 - GRANT OF OPTION

      In consideration of the Optionee's agreement to remain in the employ of
the Company or its Subsidiaries and for other good and valuable consideration,
on the date hereof the Company irrevocably grants to the Optionee the option to
purchase any part or all of an aggregate of ____ shares of Common Stock upon the
terms and conditions set forth in this Agreement.

SECTION 2.2 - PURCHASE PRICE

      The purchase price of the shares of Common Stock covered by the Option
shall be $____ per share without commission or other charge.

SECTION 2.3 - CONSIDERATION TO COMPANY

      In consideration of the granting of this Option by the Company, the
Optionee agrees to render faithful and efficient services to the Company or a
Subsidiary, with such duties and responsibilities as the Company shall from time
to time prescribe, for a period of at least one year from the date this Option
is granted. Nothing in this Agreement or in the Plan shall confer upon the
Optionee any right to continue in the employ of the Company or any Subsidiary or
shall interfere with or restrict in any way the rights of the Company or any
Subsidiary, which are hereby expressly reserved, to discharge the Optionee at
any time for any reason whatsoever, with or without cause.

SECTION 2.4 - ADJUSTMENTS IN OPTION

      In the event that the outstanding shares of Common Stock subject to the
Option are changed into or exchanged for a different number or kind of shares of
the Company or other securities of the Company by reason of merger,
consolidation, recapitalization, reclassification, or the number of shares is
increased or decreased by reason of a stock split up, stock dividend,
combination of shares or any other increase or decrease in the number of such
shares of Common Stock effected without receipt of consideration by the Company
(provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of

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consideration") the Committee shall make appropriate adjustments in the number
and kind of shares as to which the Option, or portions thereof then unexercised,
shall be exercisable, to the end that after such event the Optionee's
proportionate interest shall be maintained as before the occurrence of such
event. Such adjustment in the Option shall be made without change in the total
price applicable to the unexercised portion of the Option (except for any change
in the aggregate price resulting from rounding-off of share quantities or
prices) and with any necessary corresponding adjustment in the Option price per
share. Any such adjustment made by the Committee shall be final and binding upon
the Optionee, the Company and all other interested persons.

                                   ARTICLE III

                            PERIOD OF EXERCISABILITY

SECTION 3.1 - COMMENCEMENT OF EXERCISABILITY

            (a) Except as provided in Section 3.4, no Option may be exercised in
whole or in part during the three years after such Option is granted.
Thereafter, the Option shall be fully exercisable.

            (b) Except as provided in Section 3.4, no portion of the Option
which is unexercisable at Termination of Employment shall thereafter become
exercisable.

SECTION 3.2 - DURATION OF EXERCISABILITY

      Once the Option becomes exercisable pursuant to Section 3.1, the Option
shall remain exercisable until it becomes unexercisable under Section 3.3.

SECTION 3.3 - EXPIRATION OF OPTION

      The Option may not be exercised to any extent by anyone after the first to
occur of the following events:

            (a) The expiration of ten years and one day from the date the Option
was granted; or

            (b) The time of the Optionee's Termination of Employment unless such
Termination of Employment results from his normal retirement or total disability
(each as determined by the Committee in accordance with Company policies), early
retirement with the consent of the Committee or death or his being discharged
not for good cause; or

            (c) The expiration of three months from the date of the Optionee's
Termination of Employment by reason of his normal retirement (as determined by
the Committee in accordance

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with Company policies), early retirement with the consent of the Committee, or
his being discharged not for good cause, unless the Optionee dies within said
three-month period; or

            (d) The expiration of one year from the date of the Optionee's
Termination of Employment by reason of his total disability; or

            (e) The expiration of one year from the date of the Optionee's
death; or

            (f) The effective date of either the merger or consolidation of the
Company with or into another corporation, or the acquisition by another
corporation or person (excluding any employee benefit plan of the Company or any
trustee or other fiduciary holding securities under an employee benefit plan of
the Company) of all or substantially all of the Company's assets or more than
50% of the Company's then outstanding voting stock, or the liquidation or
dissolution of the Company, unless the Committee waives this provision in
connection with such transaction. At least ten days prior to the effective date
of such merger, consolidation, acquisition, liquidation or dissolution, the
Committee shall give the Optionee notice of such event if the Option has then
neither been fully exercised nor become unexercisable under this Section 3.3.

SECTION 3.4 - ACCELERATION OF EXERCISABILITY

            (a) In the event of a Termination of Employment resulting from an
Optionee's normal retirement or total disability (each as determined by the
Committee in accordance with Company policies), death or early retirement with
the consent of Committee, the Option shall be exercisable as to all shares
covered hereby, notwithstanding that this Option may not have become fully
exercisable under Section 3.1; or

            (b) In the event of the merger or consolidation of the Company with
or into another corporation, or the acquisition by another corporation or person
(excluding any employee benefit plan of the Company or any trustee or other
fiduciary holding securities under an employee benefit plan of the Company) of
all or substantially all of the Company's assets or more than 50% of the
Company's then outstanding voting stock, or the liquidation or dissolution of
the Company, the Committee shall then provide by resolution, adopted prior to
such event and incorporated in the notice referred to in Section 3.3(f), that at
some time prior to the effective date of such event this Option shall be
exercisable as to all the shares covered hereby, notwithstanding that this
Option may not yet have become fully exercisable under Section 3.1; provided,
however, that this acceleration of exercisability shall not take place if:

                  (i) This Option becomes unexercisable under Section 3.3 prior
      to said effective date; or

                  (ii) In connection with such an event, provision is made for
      an assumption of this Option or a substitution therefor of a new option by
      an employer corporation or a parent or subsidiary of such corporation; and

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provided, further, that nothing in this Section 3.4 shall make this Option
exercisable if it is otherwise unexercisable by reason of Section 5.6.

      The Committee may make such determinations and adopt such rules and
conditions as it, in its absolute discretion, deems appropriate in connection
with such acceleration of exercisability, including, but not by way of
limitation, provisions to ensure that any such acceleration and resulting
exercise shall be conditioned upon the consummation of the contemplated
corporate transaction.

                                   ARTICLE IV

                               EXERCISE OF OPTION

SECTION 4.1 - PERSON ELIGIBLE TO EXERCISE

      During the lifetime of the Optionee, only he may exercise the Option or
any portion thereof. After the death of the Optionee, any exercisable portion of
the Option may, prior to the time when the Option becomes unexercisable under
Section 3.3, be exercised by his representative or by any person empowered to do
so under the Optionee's will or under the then applicable laws of descent and
distribution.

SECTION 4.2 - PARTIAL EXERCISE

      At any time and from time to time prior to the time when the Option or
exercisable portion thereof becomes unexercisable under this Agreement, such
Option or portion thereof may be exercised in whole or in part, provided,
however, that the Company shall not be required to issue fractional shares and
any partial exercise of the Option shall be with respect to no less than
twenty-five (25) shares (or such lesser remaining number of shares subject to
the Option).

SECTION 4.3 - MANNER OF EXERCISE

      The Option, or any exercisable portion thereof, may be exercised solely by
delivery to the Secretary or his office of all of the following prior to the
time when the Option or such portion becomes unexercisable under Section 3.3:

            (a) Notice in writing signed by the Optionee or the other person
then entitled to exercise the Option or portion, stating that the Option or
portion is thereby exercised, such notice complying with all applicable rules
established by the Committee; and

            (b)   (i) Full payment (in cash or by check) for the shares with
            respect to which such Option or portion is exercised; or

                  (ii) With the consent of the Committee, (A) shares of the
            Company's

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            Common Stock owned by the Optionee duly endorsed for transfer to the
            Company, or (B) subject to any timing requirements imposed by the
            Company, shares of the Company's Common Stock issuable to the
            Optionee upon exercise of the Option, with a Fair Market Value on
            the date of option exercise equal to the aggregate purchase price of
            the shares with respect to which such Option or portion is
            exercised; or

                  (iii) With the consent of the Committee, a full recourse
            promissory note bearing interest (at least at such rate as shall
            preclude the imputation of interest under the Code or successor
            provision) and payable upon such terms as may be prescribed by the
            Committee. The Committee may also prescribe the form of such note
            and the security to be given for such note. The Option may not be
            exercised, however, by delivery of a promissory note or by a loan
            from the Company when or where such loan or other extension of
            credit is prohibited by law; or

                  (iv) With the consent of the Committee, any combination of the
            consideration provided in the foregoing subparagraphs (i), (ii) and
            (iii); and

            (c) Such representations and documents as the Committee, in its
absolute discretion, deems necessary or advisable to effect compliance with all
applicable provisions of federal or state securities laws or regulations. The
Committee, in its absolute discretion, may also take whatever additional actions
it deems appropriate to effect such compliance including, without limitations,
placing legends on share certificates and issuing stop-transfer notices to
agents and registrars.

            (d) Full payment to the Company (or other employer corporation) of
all amounts which, under federal, state or local tax law, it is required to
withhold upon exercise of the Option; with the consent of the Committee, (i)
shares of the Common Stock owned by the Optionee duly endorsed for transfer, or,
(ii) subject to any timing requirements imposed by the Company, shares of the
Common Stock issuable to the Optionee upon exercise of the Option, valued at
Fair Market Value as of the date of Option exercise, may be used to make all or
part of such payment; and

            (e) In the event the Option or portion shall be exercised pursuant
to Section 4.1 by any person or persons other than the Optionee, appropriate
proof of the right of such person or persons to exercise the Option.

SECTION 4.4 - CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES

      The shares of stock deliverable upon the exercise of the Option, or any
portion thereof, may be either previously authorized but unissued shares or
issued shares which have been reacquired by the Company. Such shares shall be
fully paid and nonassessable. The Company shall not be required to issue or
deliver any certificate or certificates for shares of stock purchased upon the
exercise of the Option or portion thereof prior to fulfillment of all of the
following conditions:

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            (a) The admission of such shares to listing on all stock exchanges
on which such class of stock is then listed; and

            (b) The completion of any registration or other qualification of
such shares under any state or federal law or under rulings or regulations of
the Securities and Exchange Commission or of any other governmental regulatory
body, which the Committee shall, in its absolute discretion, deem necessary or
advisable; and

            (c) The obtaining of any approval or other clearance from any state
or federal governmental agency which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and

            (d) The payment to the Company (or other employer corporation) of
all amounts which, under federal, state or local tax law, it is required to
withhold upon exercise of the Option; and

            (e) The lapse of such reasonable period of time following the
exercise of the Option as the Committee may from time to time establish for
reasons of administrative convenience.

SECTION 4.6 - RIGHTS OF STOCKHOLDER

      The holder of the Option shall not be, nor have any of the rights or
privileges of, a stockholder of the Company in respect to any shares purchasable
upon the exercise of any part of the Option unless and until certificates
representing such shares shall have been issued by the Company to such holder.

                                    ARTICLE V

                                OTHER PROVISIONS

SECTION 5.1 - ADMINISTRATION

      The Committee shall have the power to interpret the Plan, this Agreement
and all other documents relating to the Option and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee in good faith shall be
final and binding upon the Optionee, the Company and all other interested
persons. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or
the Option and all members of the Committee shall be fully protected by the
Company in respect to any such action, determination or interpretation. The
Board shall have no right to exercise any of the rights or duties of the
Committee under the Plan and this Agreement.

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SECTION 5.2 - OPTION NOT TRANSFERABLE

      Unless otherwise approved in writing by the Committee, no shares acquired
upon exercise of any Option by any Officer may be sold, assigned, pledged,
encumbered or otherwise transferred until at least six months have elapsed from
(but excluding) the date that such Option was granted. Neither the Option nor
any interest or right therein or part thereof shall be liable for the debts,
contracts or engagements of the Optionee or his successors in interest or shall
be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law or by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect;
provided, however, that this Section 5.2 shall not prevent transfers by will or
by the applicable laws of descent and distribution.

SECTION 5.3 - SHARES TO BE RESERVED

      The Company shall at all times during the term of the Option reserve and
keep available such number of shares of stock as will be sufficient to satisfy
the requirements of this Agreement.

SECTION 5.4 - NOTICES

      Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Secretary, and any notice to
Optionee shall be given to him at the address given beneath his signature
hereto. By a notice given pursuant to this Section 5.4, either party may
hereafter designate a different address for notices to be given to it or him.
Any notice which is required to be given to the Optionee shall, if the Optionee
is then deceased, be given to the Optionee's personal representative if such
representative has previously informed the Company of his status and address by
written notice under this Section 5.4. Any notice shall be deemed duly given
when enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
deposited (with postage prepaid) in a post office or branch post office
regularly maintained by the United States Postal Service.

SECTION 5.5 - TITLES

      Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

SECTION 5.6 - CONFORMITY TO SECURITIES LAWS

      This Agreement is intended to conform to the extent necessary with all
provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange Commission
thereunder, including without limitation, Rule 16b-3. Notwithstanding anything
herein to the contrary, this Agreement shall be administered, and the

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Option shall be granted and may be exercised, only in such a manner as to
conform to such laws, rules and regulations. To the extent permitted by
applicable law, this Agreement and the Option granted hereunder shall be deemed
amended to the extent necessary to conform to such laws, rules and regulations.

SECTION 5.7 - AMENDMENT

      This Agreement may be amended only by a writing executed by the parties
hereto which specifically states that it is amending this Agreement.

SECTION 5.8 - GOVERNING LAW

      The laws of the State of Delaware shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this
Agreement regardless of the law that might be applied under principles of
conflicts of laws.

                                   ARTICLE VI

                               ADDITIONAL OPTIONS

SECTION 6.1 - ADDITIONAL OPTIONS

            (a) If the Optionee exercises the Option or any portion thereof,
pursuant to Section 4.3(b)(ii)(A), by tendering or relinquishing shares of
Common Stock and/or when shares of Common Stock are tendered or relinquished
pursuant to Section 4.3 (d)(i) in payment for the amount to be withheld under
applicable federal, state and local income tax regulations (at withholding rates
not to exceed the Optionee's applicable marginal tax rates) in connection with
the exercise of the Option, the Optionee shall automatically be granted an
Additional Option. The Additional Option shall be subject to the following
provisions:

                  (i) The shares of Common Stock tendered or relinquished in
            satisfaction of the exercise price and, if applicable, in
            satisfaction of the Optionee's tax withholding obligations in
            connection with the exercise, shall be shares of Common Stock
            acquired by the Optionee other than through the exercise of an
            option or through the grant of restricted stock unless such shares
            have been held by the Optionee for more than six months following
            the exercise of the stock option or the lapse of restrictions on the
            restricted stock whatever the case may be;

                  (ii) The Additional Option will not have an Additional Option
            feature;

                  (iii) The Additional Option shall grant the right to purchase
            the number of shares of Common Stock which is equal to the sum of
            (A) the number of shares

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            of Common Stock tendered or relinquished as consideration upon the
            exercise of the Option and (B) the number of shares of Common Stock
            tendered or relinquished in payment of the applicable withholding
            taxes;

                  (iv) The Additional Option shall be granted on the date
            following the date on which the Optionee tenders or relinquishes
            shares of Common Stock pursuant to this Article VI; the exercise
            price of the Additional Option shall be 100% of the Fair Market
            Value on the date of grant.

                  (v) The Additional Option shall have the same expiration date
            as this Option; and

                  (vi) The Additional Option shall be immediately exercisable.

      IN WITNESS HEREOF, this Agreement has been executed and delivered by the
parties hereto.

                                                  MANOR CARE, INC.

                                                  By: __________________________

                                                  Its: _________________________

_________________________________
Optionee

_________________________________

_________________________________
Address

_________________________________
Optionee's Social Security Number

                                      -12-<PAGE>

                                                                    EXHIBIT 10.7

                              EQUITY INCENTIVE PLAN
                                       OF
                                MANOR CARE, INC.

                           RESTRICTED STOCK AGREEMENT

      THIS RESTRICTED STOCK AGREEMENT, dated as of ________________, is made by
and between MANOR CARE, INC., a Delaware corporation (the "Company"), and
_________________, an officer of the Company (the "Employee"):

      WHEREAS, the Company has established the Equity Incentive Plan of Manor
Care, Inc. (the "Plan"); and

      WHEREAS, Article VIII of the Plan provides for the issuance of shares of
the Company's Common Stock, subject to certain restrictions thereon and to other
conditions stated herein; and

      WHEREAS, the Compensation Committee of the Board of Directors
("Committee") has determined that it would be to the advantage and best interest
of the Company and its stockholders to issue the shares of Restricted Stock
provided for herein to the Employee in partial consideration for services
rendered, or to be rendered, to the Company and/or its subsidiaries; and

      NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Whenever the following terms are used in this Agreement, they shall have
the meaning specified below unless the context clearly indicates to the
contrary. Capitalized terms not otherwise defined herein shall have the meanings
set forth in the Plan. The masculine pronoun shall include the feminine and
neuter, and the singular the plural, where the context so indicates.

SECTION 1.1 - COMMON STOCK

      "Common Stock" shall mean the Company's common stock, $.01 par value.

<PAGE>

SECTION 1.2 - EXCHANGE ACT

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

SECTION 1.3 - FAIR MARKET VALUE

      "Fair Market Value" of a share of Common Stock as of a given date shall
be: (a) the closing price of a share of Common Stock on the principal exchange
on which shares of Common Stock are then trading, if any, on the trading day
previous to such date, or, if shares were not traded on the trading day previous
to such date, then on the next preceding date on which a trade occurred, or (b)
if Common Stock is not traded on an exchange but is quoted on NASDAQ or a
successor quotation system, the mean between the closing representative bid and
asked prices for the Common Stock on the trading day previous to such date as
reported by NASDAQ or such successor quotation system, or (c) if Common Stock is
not publicly traded on an exchange and not quoted on NASDAQ or a successor
quotation system, the Fair Market value established by the Committee acting in
good faith.

SECTION 1.4 - PARENT CORPORATION

      "Parent Corporation" shall mean any corporation in an unbroken chain of
corporations ending with the Company if each of the corporations other than the
Company then owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

SECTION 1.5 - PLAN

      "Plan" shall mean the Equity Incentive Plan of Manor Care, Inc.

SECTION 1.6 - RESTRICTIONS

      "Restrictions" shall mean the reacquisition and transferability
restrictions imposed upon Restricted Stock under this Agreement.

SECTION 1.7 - RESTRICTED STOCK

      "Restricted Stock" shall mean Common Stock of the Company issued under
this Agreement and subject to the Restrictions imposed hereunder.

SECTION 1.8 - RULE 16B-3

      "Rule 16b-3" shall mean that certain Rule 16b-3 under the Exchange Act, as
such Rule may be amended in the future.

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SECTION 1.9 - SECRETARY

      "Secretary" shall mean the Secretary of the Company.

SECTION 1.10 - SECURITIES ACT

      "Securities Act" shall mean the Securities Act of 1933, as amended.

SECTION 1.11 - SUBSIDIARY

      "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. "Subsidiary" shall also mean any partnership
in which the Company and/or any Subsidiary owns more than 50% of the capital or
profits interests.

SECTION 1.12 - TERMINATION OF EMPLOYMENT

      "Termination of Employment" shall mean the time when the employee-employer
relationship between the Employee and the Company or any Subsidiary is
terminated for any reason, with or without cause, including, but not by way of
limitation, a termination by resignation, discharge, death, disability or
retirement; but excluding (a)a termination where there is a simultaneous
reemployment or continuing employment of the Employee by the Company or any
Subsidiary, (b) at the discretion of the Committee, a termination which results
in a temporary severance of the employee-employer relationship, and (c) at the
discretion of the Committee, a termination which is followed by the simultaneous
establishment of a consulting relationship by the Company or a Subsidiary with
the Employee. The Committee, in its absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Employment,
including, but not by way of limitation, the question of whether a Termination
of Employment resulted from a discharge for good cause, and all questions of
whether a particular leave of absence constitutes a Termination of Employment.

                                   ARTICLE II

                          ISSUANCE OF RESTRICTED STOCK

SECTION 2.1 - ISSUANCE OF RESTRICTED STOCK

      In consideration of the past services rendered to the Company and for
other good and valuable consideration which the Committee has determined to be
equal to the par value of its Common Stock, on the date hereof the Company
issues to the Employee ___________ shares of its Common Stock, par value $.01
per share, upon the terms and conditions set forth in this Agreement.

                                       -3-

<PAGE>

SECTION 2.2 - NO RIGHT TO CONTINUED EMPLOYMENT

      Nothing in this Agreement or in the Plan shall confer upon the Employee
any right to continue in the employ of the Company, any Parent Corporation or
any Subsidiary or shall interfere with or restrict in any way the rights of the
Company or any Subsidiary, which are hereby expressly reserved, to discharge the
Employee at any time for any reasons whatsoever, with or without cause.

                                   ARTICLE III

                                  RESTRICTIONS

SECTION 3.1 - REACQUISITION OF RESTRICTED STOCK

      All shares of Restricted Stock issued to the Employee pursuant to this
Agreement are subject to reacquisition by the Company immediately upon a
Termination of Employment except in the event of a Termination of Employment
which occurs at a time when the Employee is eligible for normal retirement,
early retirement with unreduced retirement benefits or total disability (each as
determined by the Committee in accordance with Company plans and policies), or
occurs on account of death, in which event all shares of Restricted Stock shall
immediately fully vest and all Restrictions with respect to such shares of
Restricted Stock shall immediately expire. In the event an Employee's employment
is terminated but there is a simultaneous reemployment or the continuation of a
relationship within the meaning of subsections (a) or (c) of Section 1.12, the
subsequent termination of such reemployment or of the continuing relationship
("Subsequent Termination") shall not result in the reacquisition of the
Employee's Restricted Stock if, at the time of the Subsequent Termination, the
Employee would have been eligible for normal retirement or early retirement with
unreduced retirement benefits assuming the period of time during the
reemployment and/or the continuing relationship had been considered credited
service under the Company's retirement plans; all shares of Restricted Stock
shall immediately vest upon such Subsequent Termination.

SECTION 3.2 - LEGEND

      Certificates representing shares of Restricted Stock issued pursuant to
this Agreement shall, until all restrictions lapse and new certificates are
issued pursuant to Section 3.3, bear the following legend:

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
      VESTING REQUIREMENTS AND MAY BE SUBJECT TO REACQUISITION BY THE COMPANY
      UNDER THE TERMS OF THAT CERTAIN RESTRICTED STOCK AGREEMENT BY AND BETWEEN
      MANOR CARE, INC. (THE "COMPANY") AND THE HOLDER OF THE SECURITIES. PRIOR
      TO VESTING OF OWNERSHIP IN THE SECURITIES,

                                      -4-

<PAGE>

      THEY MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD,
      ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY
      CIRCUMSTANCES. COPIES OF THE ABOVE REFERENCED AGREEMENT ARE ON FILE AT THE
      OFFICES OF THE COMPANY AT 333 N. SUMMIT ST., TOLEDO, OHIO 43604.

SECTION 3.3 - LAPSE OF RESTRICTIONS

      The shares of Restricted Stock shall vest and all restrictions thereon
shall terminate upon the Employee's Termination of Employment if, at the time of
such termination, the Employee is eligible for normal retirement, early
retirement with unreduced retirement benefits or total disability (each as
determined by the Committee in accordance with Company plans and policies) or if
termination occurs on account of death. In the event an Employee's employment is
terminated but there is a simultaneous reemployment or the continuation of a
relationship within the meaning of subsections (a) or (c) of Section 1.12, all
shares of Restricted Stock shall vest and all restrictions thereon shall
terminate upon the subsequent termination of such reemployment or of the
continuing relationship ("Subsequent Termination") if, at the time of the
Subsequent Termination, the Employee would have been eligible for normal
retirement or early retirement with unreduced retirement benefits assuming the
period of time during the reemployment and/or the continuing relationship had
been considered credited service under the Company retirement plans. Upon the
vesting of the shares and subject to Section 4.3, the Company shall cause new
certificates to be issued with respect to such vested shares and delivered to
the Employee or his legal representative, free from the legend provided for in
Section 3.2 and any of the other Restrictions. Such vested shares shall cease to
be considered Restricted Stock subject to the terms and conditions of this
Agreement.

SECTION 3.4 - MERGER, CONSOLIDATION, ACQUISITION, LIQUIDATION OR DISSOLUTION

      Notwithstanding any other provision of this Agreement, upon the merger or
consolidation of the Company into another corporation, the acquisition by
another corporation or person (excluding any employee benefit plan of the
Company or any trustee or other fiduciary holding securities under an employee
benefit plan of the Company) of all or substantially all of the Company's assets
or 50% or more of the Company's then outstanding voting stock, or the
liquidation or dissolution of the Company, the Committee shall then provide by
resolution adopted prior to such event that, at some time prior to the effective
date of such event, all shares of Restricted Stock not previously reacquired
pursuant to Section 3.1 shall fully vest and all Restrictions with respect to
such shares of Restricted Stock shall immediately expire.

SECTION 3.5 - RESTRICTIONS ON NEW SHARES

      In the event that the outstanding shares of the Company's Common Stock are
changed into or exchanged for a different number or kind of shares or other
securities of the Company or of another corporation pursuant to a merger of the
Company into another corporation, or the exchange of all or substantially all of
the assets of the Company for the securities of another corporation, or

                                      -5-

<PAGE>

the acquisition by another corporation or person (excluding any employee benefit
plan of the Company or any trustee or other fiduciary holding securities under
an employee benefit plan of the Company) of 50% or more of the Company's then
outstanding voting stock, or the liquidation or dissolution of the Company, or a
stock split-up or stock dividend, such new, additional or different shares or
securities which are held or received by the Employee in his capacity as a
holder of Restricted Stock shall be considered to be Restricted Stock and shall
be subject to all of the Restrictions, unless the Committee provides, pursuant
to Section 3.4, for the accelerated vesting and expiration of the Restrictions
on the shares of Restricted Stock underlying the distribution of the new,
additional or different shares or securities.

                                   ARTICLE IV

                                  MISCELLANEOUS

SECTION 4.1 - ADMINISTRATION

      The Committee shall have the power to interpret the Plan, this Agreement
and all other documents relating to Restricted Stock and to adopt such rules for
the administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee in good faith shall be
final and binding upon the Employee, the Company and all other interested
persons. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or
the Restricted Stock and all members of the Committee shall be fully protected
by the Company in respect to any such action, determination or interpretation.
The Board shall have no right to exercise any of the rights or duties of the
Committee under the Plan and this Agreement.

SECTION 4.2 - RESTRICTED STOCK NOT TRANSFERABLE

      No Restricted Stock or any interest or right therein or part thereof shall
be liable for the debts, contracts or engagements of the Employee or his
successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any
other means, whether such disposition be voluntary or involuntary or by
operation of law by judgment, levy, attachment, garnishment or any other legal
or equitable proceedings (including bankruptcy), and any attempted disposition
thereof shall be null and void and of no effect; provided, however, that this
Section 4.2 shall not prevent transfers by will or by the applicable laws of
descent and distribution.

SECTION 4.3 - CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES

      The Company shall not be required to issue or deliver any certificate or
certificates for shares of stock pursuant to this Agreement prior to fulfillment
of all of the following conditions:

                                      -6-

<PAGE>

            (a) The admission of such shares to listing on all stock exchanges
on which such class of stock is then listed; and

            (b) The completion of any registration or other qualification of
such shares under any state or federal law or under rulings or regulations of
the Securities and Exchange Commission or of any other governmental regulatory
body, which the Committee shall, in its absolute discretion, deem necessary or
advisable; and

            (c) The obtaining of any approval or other clearance from any state
or federal governmental agency which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and

            (d) Subject to the provisions of Section 4.10, the payment by the
Employee of all amounts required to be withheld, under federal, state and local
tax laws, with respect to the issuance of Restricted Stock and/or the lapse or
removal of any of the Restrictions; and

            (e) The lapse of such reasonable period of time as the Committee may
from time to time establish for reasons of administrative convenience.

SECTION 4.4 - ESCROW

      The Secretary or such other escrow holder as the Committee may appoint
shall retain physical custody of the certificates representing Restricted Stock,
including shares of Restricted Stock issued pursuant to Section 3.5, until all
of the Restrictions expire or shall have been removed; provided, however, that
in no event shall the Employee retain physical custody of any certificates
representing Restricted Stock issued to him.

SECTION 4.5 - NOTICES

      Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Secretary, and any notice to be
given to the Employee shall be addressed to him at the address given beneath his
signature hereto. By a notice given pursuant to this Section 4.5, either party
may hereafter designate a different address for notices to be given to it or
him. Any notice which is required to be given to the Employee shall, if the
Employee is then deceased, be given to the Employee's personal representative if
such representative has previously informed the Company of his status and
address by written notice under this Section 4.5. Any notice shall be deemed
duly given when enclosed in a properly sealed envelope or wrapper addressed as
aforesaid, deposited (with postage prepaid) in a post office or branch post
office regularly maintained by the United States Postal Service.

SECTION 4.6 - RIGHTS AS STOCKHOLDER

      Upon delivery of the shares of Restricted Stock to the escrow holder
pursuant to Section 4.4, the Employee shall have all the rights of a stockholder
with respect to said shares, subject to the

                                      -7-

<PAGE>

restrictions herein (including the provisions of Section 4.10), including the
right to vote the shares and to receive all dividends or other distributions
paid or made with respect to the shares.

SECTION 4.7 - TITLES

      Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

SECTION 4.8 - CONFORMITY TO SECURITIES LAWS

      This Agreement is intended to conform to the extent necessary with all
provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange Commission
thereunder, including without limitation Rule 16b-3. Notwithstanding anything
herein to the contrary, this Agreement shall be administered, and the Restricted
Stock shall be issued, only in such a manner as to conform to such laws, rules
and regulations. To the extent permitted by applicable law, this Agreement and
the Restricted Stock issued hereunder shall be deemed amended to the extent
necessary to conform to such laws, rules and regulations.

SECTION 4.9 - AMENDMENT

      This Agreement may be amended only by a writing executed by the parties
hereto which specifically states that it is amending this Agreement.

SECTION 4.10 - TAX WITHHOLDING

      The Company's obligation: (i) to issue or deliver to the Employee any
certificate or certificates for unrestricted shares of stock; or (ii) to pay to
the Employee any dividends or make any distributions with respect to the
Restricted Stock, is expressly conditioned upon receipt from the Employee, on or
prior to the date reasonably specified by the Company of:

            (a) Full payment (in cash or by check) of any amount that must be
withheld by the Company for federal, state and/or local tax purposes; or

            (b) Subject to the Committee's consent and Section 4.10(c), full
payment by delivery to the Company of unrestricted shares of the Company's
Common Stock previously owned by the Employee duly endorsed for transfer to the
Company by the Employee with an aggregate Fair Market Value (determined, as
applicable, as of the date of the lapse of the restrictions or vesting, or as of
the date of the distribution) equal to the amount that must be withheld by the
Company for federal, state and/or local tax purposes; or

            (c) With respect to the withholding obligation for shares of
Restricted Stock that become unrestricted shares of stock as of a certain date
(the "Vesting Date"), subject to the Committee's consent, full payment by
retention by the Company of a portion of such shares of

                                      -8-

<PAGE>

Restricted Stock which become unrestricted or vested with an aggregate Fair
Market Value (determined as of the Vesting Date) equal to the amount that must
be withheld by the Company for federal, state and/or local tax purposes; or

            (d) Subject to the Committee's consent, any combination of payments
provided for in the foregoing subsections (a), (b) or (c).

SECTION 4.11 - GOVERNING LAW

      The laws of the State of Delaware shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this
Agreement regardless of the law that might be applied under principles of
conflicts of laws.

      IN WITNESS HEREOF, this Agreement has been executed and delivered by the
parties hereto.

                                                 MANOR CARE, INC.

                                                 By:  __________________________

                                                 Its: __________________________

_______________________________
Employee

_______________________________

_______________________________
Address

Officers

                                      -9-

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