Document:

<PAGE>   1

                                                                  EXHIBIT 10.106

            SECOND AMENDMENT TO CREDIT AGREEMENT, THIRD AMENDMENT TO
                          GUARANTY AGREEMENT AND WAIVER

         THIS SECOND AMENDMENT TO CREDIT AGREEMENT, THIRD AMENDMENT TO GUARANTY
AGREEMENT AND WAIVER (hereinafter, the "Agreement") is entered into as of
January 26, 2001 among the Borrowers party hereto, HCR/Alterra Development, LLC,
a Delaware limited liability company (the "Parent"), Alterra Healthcare
Corporation, a Delaware corporation ("Alterra"), Manor Care, Inc., a Delaware
corporation ("HCR"), Bank of America, N.A., as Administrative Agent (in such
capacity, the "Administrative Agent") and the Lenders party hereto. Capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings given to them in the Credit Agreement.

                                    RECITALS

         WHEREAS, the Borrowers party thereto, the Parent, the Administrative
Agent, The Chase Manhattan Bank, as syndication agent, Deutsche Bank AG New York
and/or Cayman Islands Branches and Bank United, F.S.B., as co-agents and the
Lenders are parties to that certain Credit Agreement dated as of September 30,
1999 (as amended or modified from time to time, the "Credit Agreement");

         WHEREAS, Alterra entered into that certain Guaranty Agreement dated as
of September 30, 1999 in favor of the Administrative Agent, on behalf of the
Lenders (as amended or modified from time to time, the "Alterra Guaranty
Agreement") and HCR entered into that certain Guaranty Agreement dated as of
September 30, 1999 in favor of the Administrative Agent, on behalf of the
Lenders (as amended or modified from time to time, the "HCR Guaranty
Agreement");

         WHEREAS, the Credit Parties acknowledge that (a) a Default currently
exists under the Credit Agreement as a result of the failure of the Operative
Parties to comply with the terms of Section 7.11(a) of the Credit Agreement with
respect to the fiscal quarter of the Borrowers ending September 30, 2000 and (b)
a Pool A Event of Default currently exists under the Credit Agreement as a
result of the failure of the Operative Parties to comply with the terms of
Section 7.1(d) of the Credit Agreement with respect to the fiscal quarter of the
Borrowers ending September 30, 2000 (the defaults enumerated in (a) and (b)
collectively, the "Existing Defaults");

         WHEREAS, Alterra has issued 1,250,000 shares of Series A 9.75%
Convertible Pay-In-Kind Preferred Stock (the "Series A Stock") and has agreed
with the holders of such Series A Stock to dividend to such holders certain
rights and benefits which are substantially similar and proportionate to the
rights and benefits distributed to the holders of Alterra's common stock
pursuant to Alterra's shareholders' rights plan (the "Shareholders' Rights
Dividend");

<PAGE>   2

         WHEREAS, the Credit Parties have requested that the Lenders (a) waive
the Existing Defaults, (b) consent to Alterra's making the Shareholders' Rights
Dividend, (c) amend certain terms of the Credit Agreement as set forth herein
and (d) amend certain terms of the Alterra Guaranty Agreement as set forth
herein;

         WHEREAS, the Lenders are willing to comply with the foregoing requests,
based upon and subject to the terms and conditions specified in this Agreement.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Reaffirmation of Existing Debt. The Credit Parties acknowledge and
confirm that (a) the Borrowers' obligations to repay the outstanding principal
amount of the Loans is unconditional and not subject to any offsets, defenses or
counterclaims, (b) the Administrative Agent, on behalf of the Lenders, has a
valid and enforceable first priority perfected security interest in the
Collateral, (c) the Administrative Agent and the Lenders have performed fully
all of their respective obligations under the Credit Agreement and the other
Credit Documents, and (d) by entering into this Agreement, the Administrative
Agent and the Lenders do not waive or release (except as specifically provided
in Section 2 and Section 3 hereof) any term or condition of the Credit Agreement
or any of the other Credit Documents or any of their rights or remedies under
such Credit Documents or applicable law or any of the obligations of any Credit
Party thereunder.

         2. Waiver. Subject to the other terms and conditions of this Agreement,
the Lenders hereby waive the Existing Defaults. Except for the waiver contained
herein, this Agreement does not modify or effect the obligations of the Credit
Parties to comply fully with all terms, conditions and covenants contained in
the Credit Documents. The waiver contained herein is a one time waiver and is
limited to the Existing Defaults, and nothing contained in this Agreement shall
be deemed to constitute a waiver of any other rights or remedies the
Administrative Agent or any Lender may have under the Credit Agreement or any
other Credit Document or under applicable law.

         3. Consent. Subject to the other terms and conditions of this
Agreement, the Lenders hereby consent to Alterra's making the Shareholders'
Rights Dividend to the holders of the Series A Stock, notwithstanding the terms
of Section 5.5 of the Alterra Guaranty Agreement.

         4. Amendments to the Credit Agreement.

                  (a) Debt Service. The definitions of "Debt Service" and "Debt
         Service Coverage Ratio" set forth in Section 1.1 of the Credit
         Agreement are hereby deleted in their entirety from the Credit
         Agreement.

                  (b) Revolving Committed Amount. The definition of "Revolving
         Committed Amount" set forth in Section 1.1 of the Credit Agreement is
         hereby amended and restated in its entirety to read as follows:

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<PAGE>   3

                           "Revolving Committed Amount" means Fifty Six Million
                  Nine Hundred Seventy Seven Thousand Nine Hundred Thirty Seven
                  Dollars and Sixty One Cents ($56,977,937.61) (as such
                  aggregate maximum amount may be reduced from time to time as
                  provided in Section 3.4).

                  (c) Maturity Date. The definition of "Maturity Date" set forth
         in Section 1.1 of the Credit Agreement is hereby amended and restated
         in its entirety to read as follows:

                           "Maturity Date" means June 29, 2001.

                  (d) Stabilized Eligible Project. The definition of "Stabilized
         Eligible Project" set forth in Section 1.1 of the Credit Agreement is
         hereby deleted in its entirety from the Credit Agreement.

                  (e) No Extension. Section 2.2 of the Credit Agreement is
         hereby deleted in its entirety and shall now read as follows:

                           2.2 [Reserved].

                  (f) Quarterly Operating Statements. Section 7.1(b) of the
         Credit Agreement is hereby amended and restated in its entirety to read
         as follows:

                           (b) Quarterly Operating Statements. As soon as
                  available, and in any event within 30 days after the close of
                  each fiscal quarter of the Borrowers, an operating statement
                  for each Eligible Project, together with (i) the Occupancy
                  Rate, as at the end of such fiscal quarter for each Eligible
                  Project and (ii) comparative figures for the preceding fiscal
                  quarter, all such information to be in reasonable form and
                  detail and reasonably acceptable to the Administrative Agent
                  accompanied by a certificate of the chief financial officer of
                  the applicable Borrower to the effect that such quarterly
                  operating statements fairly present in all material respects
                  the operating results of the applicable Eligible Project.

                  (g) Officer's Certificate. Section 7.1(d) of the Credit
         Agreement is hereby amended and restated in its entirety to read as
         follows:

                           (d) Officer's Certificate. At the time of delivery of
                  the operating statements provided for in Section 7.1(b) above,
                  a certificate of an Executive Officer of each Designated
                  Borrower substantially in the form of Exhibit 7.1(d) stating
                  that no Default or Event of Default exists, or if any Default
                  or Event of Default does exist, specifying the nature and
                  extent thereof and what action the Operative Parties propose
                  to take with respect thereto.

                  (h) Annual Business Plan and Budgets. Section 7.1(e) of the
         Credit Agreement is hereby deleted in its entirety and shall now read
         as follows:

                                       3

<PAGE>   4

                           (e) [Reserved].

                  (i) Insurance. Section 7.6(c)(v) of the Credit Agreement is
         hereby amended by deleting the reference to "Section 2.2" in Section
         7.6(c)(v) of the Credit Agreement and replacing such reference with
         "Section 2.1".

                  (j) Financial Covenants. Schedule 7.11 of the Credit Agreement
         is hereby deleted in its entirety and shall now read as follows:

                           7.11 [Reserved].

                  (k) Asset Dispositions. The second and third paragraphs of
         Section 8.5 of the Credit Agreement are hereby amended and restated in
         their entirety to read as follows:

                           Notwithstanding the foregoing paragraph, a Borrower
                  may sell a Facility and obtain the release of the
                  Administrative Agent's security interest, for the benefit of
                  the Lenders, with respect to such Facility provided (i) no
                  Default (other than a Default which the applicable Borrower is
                  attempting to remedy by removing such Facility as Collateral
                  in accordance with the terms of this Section 8.5) or Event of
                  Default exists before or after giving effect to any such sale,
                  (ii) such Facility is sold pursuant to the terms and
                  conditions of an arms-length contract for fair market value,
                  (iii) to the extent such Borrower has any Revolving Loans
                  outstanding hereunder, the proceeds received from such
                  disposition of such Facility are applied to prepay such
                  Revolving Loans borrowed by such Borrower in full in
                  accordance with Section 3.3(b)(ii) and (iv) the Borrowing Base
                  shall continue to exceed the amount of Revolving Loans
                  outstanding after giving effect to any such sale (to be
                  evidenced by the delivery to the Administrative Agent prior to
                  consummating such sale of a Borrowing Base Certificate
                  certified by each of the chief financial officers of the
                  Designated Borrowers to be true and correct).

                           Notwithstanding the terms of Section 8.4 and Section
                  8.5 to the contrary, the Parent and the limited partners of a
                  Borrower may (i) sell the Capital Stock of such Borrower or
                  (ii) merge such Borrower with and into a successor entity and
                  obtain the release of the Administrative Agent's security
                  interest, for the benefit of the Lenders, with respect to the
                  Facility owned by such Borrower provided (A) no Default (other
                  than a Default which the Parent and the limited partners of
                  the applicable Borrower are attempting to remedy by removing
                  the Facility of such Borrower as Collateral in accordance with
                  the terms of this Section 8.5) or Event of Default exists
                  before or after giving effect to any such disposition of
                  Capital Stock or merger, as applicable, (B) such Capital Stock
                  is sold or such merger is consummated, as applicable, pursuant
                  to the terms and conditions of an arms-length contract for
                  fair market value, (C) to the extent such Borrower has any
                  Revolving Loans outstanding hereunder, the proceeds received
                  from such disposition of Capital Stock or merger, as
                  applicable, are applied to prepay such Revolving Loans
                  borrowed by such Borrower in accordance with Section
                  3.3(b)(ii) and (D) after giving effect to any such disposition
                  of Capital Stock or

                                       4

<PAGE>   5

                  merger, as applicable, the Borrowing Base shall continue to
                  exceed the amount of Revolving Loans outstanding (to be
                  evidenced by the delivery to the Administrative Agent prior to
                  consummating such disposition or merger, as applicable, of a
                  Borrowing Base Certificate certified by each of the chief
                  financial officers of the Designated Borrowers to be true and
                  correct).

                  (l) Events of Default. Section 9.1(a)(iii)(C) of the Credit
         Agreement is hereby deleted in its entirety and shall now read as
         follows:

                           (C) [Reserved].

                  (m) Schedule 2.1(a)(i). Schedule 2.1(a)(i) of the Credit
         Agreement is hereby amended and restated in its entirety to read as
         provided on Schedule 2.1(a)(i) attached hereto.

                  (n) Exhibit 7.1(d). Exhibit 7.1(d) of the Credit Agreement is
         hereby amended and restated in its entirety to read as provided on
         Exhibit 7.1(d) attached hereto.

         5. Amendments to the Alterra Guaranty Agreement.

                  (a) Definitions. The definitions of "Debentures", "Debt
         Service Coverage Ratio", "EBITDA", "Equity Issuance", "Funded
         Indebtedness", "Interest", "Leverage Ratio", "Net Income", "Net Worth",
         "Rent" and "Rental Expense" set forth in Section 1.1 of the Alterra
         Guaranty Agreement are each hereby deleted in their entirety from the
         Alterra Guaranty Agreement.

                  (b) Officer's Certificate. Section 4.1(c) of the Alterra
         Guaranty Agreement is hereby amended and restated in its entirety to
         read as follows:

                           (c) Officer's Certificate. At the time of delivery of
                  the financial statements provided for in Section 4.1(a) and
                  4.1(b) above, a certificate of an Executive Officer of
                  Alterra, stating that no Default or Event of Default exists,
                  or if any Default or Event of Default does exist, specifying
                  the nature and extent thereof and what action the Credit
                  Parties propose to take with respect thereto.

                  (c) Financial Covenants. Section 4.9 of the Alterra Guaranty
         Agreement is hereby deleted in its entirety and shall now read as
         follows:

                  4.9 [Reserved].

                  (d) Restricted Payments. Section 5.5(i) of the Alterra
         Guaranty Agreement is hereby amended and restated in its entirety to
         read as follows:

                           (i) so long as no Default or Event of Default shall
                  have occurred or be continuing and no Default or Event of
                  Default shall exist after giving effect thereto and subject to
                  the terms of Section 4.1(j), Alterra may repurchase those

                                       5

<PAGE>   6

                  certain convertible securities of Alterra due December 31,
                  2002 prior to their maturity; provided, that the aggregate
                  consideration (including cash and non-cash consideration on a
                  fair market value basis) paid for all such repurchases of such
                  convertible securities does not exceed $25,000,000 in the
                  aggregate during the term of the Credit Agreement; provided,
                  further, however, Alterra may repurchase an additional amount
                  of such convertible securities in an amount not exceeding
                  $15,000,000 in the aggregate during the term of the Credit
                  Agreement so long as Alterra finances such repurchases with
                  net cash proceeds received by Alterra (I) as a result of
                  financing or refinancing properties on a non-recourse basis or
                  (II) from the sale of Non-Stabilized Projects.

         6. Conditions Precedent. The effectiveness of this Agreement is subject
to the satisfaction of each of the following conditions (in form and substance
satisfactory to the Administrative Agent):

                  (a) The Administrative Agent shall have received executed
         counterparts of this Agreement duly executed by the Credit Parties, the
         Administrative Agent and the Required Lenders.

                  (b) The Administrative Agent shall have received an opinion
         (satisfactory in form and substance to the Administrative Agent) from
         the counsel to the Credit Parties as to authority, enforceability and
         such other matters as may be required by the Administrative Agent.

                  (c) Payment by the Credit Parties of all legal fees and
         expenses of the Administrative Agent.

                  (d) The Administrative Agent shall have received such other
         documents and information as it deems reasonably necessary.

         7. Miscellaneous.

                  (a) The term "Credit Agreement" as used in each of the Credit
         Documents shall hereafter mean the Credit Agreement as amended by this
         Agreement. Except as herein specifically agreed, the Credit Agreement
         and the obligations of the Credit Parties thereunder and under the
         other Credit Documents are hereby ratified and confirmed and shall
         remain in full force and effect according to their terms.

                  (b) Each Credit Party hereby represents and warrants as
         follows:

                        (i) Such Credit Party has taken all necessary action to
            authorize the execution, delivery and performance of this Agreement.

                        (ii) This Agreement has been duly executed and delivered
            by such Credit Party and constitutes each such Credit Party's legal,
            valid and binding obligations, enforceable in accordance with its
            terms, except as such enforceability may be subject to

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<PAGE>   7

         (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or
         transfer, moratorium or similar laws affecting creditors' rights
         generally and (ii) general principles of equity (regardless of whether
         such enforceability is considered in a proceeding at law or in equity).

                  (iii) No consent, approval, authorization or order of, or
         filing, registration or qualification with, any court or governmental
         authority or third party is required in connection with the execution,
         delivery or performance by such Credit Party of this Agreement.

                  (c) Each Operative Party hereby represents and warrants with
         respect to itself to the Lenders that (i) the representations and
         warranties of such Operative Party set forth in Section 6 of the Credit
         Agreement are true and correct as of the date hereof and (ii) other
         than the Existing Defaults, no unwaived event has occurred and is
         continuing which constitutes a Default or Event of Default. Alterra
         hereby represents and warrants to the Lenders that (i) the
         representations and warranties of Alterra set forth in Section 3 of the
         Alterra Guaranty Agreement are true and correct as of the date hereof
         and (ii) no unwaived event has occurred and is continuing which
         constitutes a Default or an Event of Default under the Alterra Guaranty
         Agreement. HCR hereby represents and warrants to the Lenders that (i)
         the representations and warranties of HCR set forth in Section 3 of the
         HCR Guaranty Agreement are true and correct as of the date hereof and
         (ii) no unwaived event has occurred and is continuing which constitutes
         a Default or Event of Default.

                  (d) The Guarantors (i) acknowledge and consent to all of the
         terms and conditions of this Agreement, (ii) affirm all of their
         obligations under the Credit Documents and (iii) agree that this
         Agreement and all documents executed in connection herewith do not
         operate to reduce or discharge the Guarantors' obligations under the
         Credit Agreement or the other Credit Documents.

                  (e) This Agreement may be executed in any number of
         counterparts, each of which when so executed and delivered shall be an
         original, but all of which shall constitute one and the same
         instrument. Delivery of an executed counterpart of this Agreement by
         telecopy shall be effective as an original and shall constitute a
         representation that an executed original shall be delivered. Upon
         satisfaction of the conditions identified in Section 6 hereof, the
         effectiveness of this Agreement shall be retroactive to December 31,
         2000.

                  (d) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
         PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
         ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                       7

<PAGE>   8

         Each of the parties hereto has caused a counterpart of this Agreement
to be duly executed and delivered as of the date first above written.

BORROWERS:                          CLARE BRIDGE OF AKRON L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF ARLINGTON L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   9

                                    CLARE BRIDGE OF BAINBRIDGE L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF BINGHAM FARMS L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   10

                                    CLARE BRIDGE OF CARROLLWOOD L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF FT. MYERS L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   11

                                    CLARE BRIDGE OF HOUSTON L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF JEFFERSON TOWNSHIP L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   12

                                    CLARE BRIDGE OF LIVONIA L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF PARMA L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                         --------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   13

                                    CLARE BRIDGE OF RICHARDSON L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    CLARE BRIDGE OF TUSCAWILLA L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   14

                                    CLARE BRIDGE OF WESTCHASE L.P.,
                                    a Delaware limited partnership

                                    By: HCR/Alterra Development, LLC,
                                    a Delaware limited liability company, its
                                    sole general partner

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

<PAGE>   15

GUARANTORS:                         HCR/ALTERRA DEVELOPMENT, LLC,
                                    a Delaware limited liability company

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Co-Vice President
                                          -------------------------------------

                                    ALTERRA HEALTHCARE CORPORATION,
                                    a Delaware corporation

                                    By:    /s/ Mark Ohlendorf
                                       ----------------------------------------
                                    Name:  Mark Ohlendorf
                                        ---------------------------------------
                                    Title: Senior Vice President
                                          -------------------------------------

                                    MANOR CARE, INC.,
                                    a Delaware corporation

                                    By:    /s/ Douglas G. Haag
                                       ----------------------------------------
                                    Name:  Douglas G. Haag
                                        ---------------------------------------
                                    Title: Treasurer
                                          -------------------------------------

<PAGE>   16

LENDERS:                            BANK OF AMERICA, N.A.,
                                    as Administrative Agent and as a Lender

                                    By:    /s/ F. Scott Singhoff
                                       ----------------------------------------
                                    Name:  F. Scott Singhoff
                                        ---------------------------------------
                                    Title: Managing Director
                                          -------------------------------------

                                    THE CHASE MANHATTAN BANK

                                    By:    /s/ Dawn Lee Lum
                                       ----------------------------------------
                                    Name:  Dawn Lee Lum
                                        ---------------------------------------
                                    Title: Vice President
                                          -------------------------------------

                                    DEUTSCHE BANK AG NEW YORK AND/OR
                                    CAYMAN ISLAND BRANCHES

                                    By:    /s/ Diane F. Rolfe
                                       ----------------------------------------
                                    Name:  Diane F. Rolfe
                                        ---------------------------------------
                                    Title: Vice President
                                          -------------------------------------

                                    BANK UNITED, F.S.B.

                                    By:      /s/
                                       ----------------------------------------
                                    Name:
                                        ---------------------------------------
                                    Title:
                                          -------------------------------------

                                    COMERICA BANK

                                    By:    /s/
                                       ----------------------------------------
                                    Name:
                                        ---------------------------------------
                                    Title:
                                          -------------------------------------

<PAGE>   17

                                    NATIONAL CITY BANK

                                    By:    /s/
                                       ----------------------------------------
                                    Name:
                                        ---------------------------------------
                                    Title:
                                          -------------------------------------

                                    THE HUNTINGTON NATIONAL BANK

                                    By:    /s/ Daniel E. Crane
                                       ----------------------------------------
                                    Name:  Daniel E. Crane
                                        ---------------------------------------
                                    Title: Vice President
                                          -------------------------------------

                                    BANK OF MONTREAL

                                    By:    /s/
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    THE BANK OF NEW YORK

                                    By:    /s/ Michael Flannery
                                       ----------------------------------------
                                    Name:  Michael Flannery
                                        ---------------------------------------
                                    Title: Vice President
                                          -------------------------------------<PAGE>   1
                                                                  EXHIBIT 10.142

                        FIRST AMENDMENT TO LOAN AGREEMENT

         THIS FIRST AMENDMENT TO LOAN AGREEMENT IS dated as of December 31, 2000
and made by and between AHC BORROWER I, INC., a Delaware corporation
("Borrower"), the financial institutions who are or hereafter become parties to
the Loan Agreement, as amended hereby ("Lenders") and HELLER HEALTHCARE FINANCE,
INC., a Delaware corporation, as the "Agent" and a Lender.

                                    RECITALS

         WHEREAS, Borrower, Lenders and Agent are parties to that certain Loan
Agreement dated August 28, 2000 (as amended, restated, supplemented or otherwise
modified from time to time, the "Loan Agreement");

         WHEREAS, Borrower, Lenders and the Agent desire to amend the Loan
Agreement upon the terms and subject to the conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the foregoing and the agreements
contained herein, the parties hereto agree as follows:

         Section 1.   Definitions. Capitalized terms used but not otherwise
defined herein shall have the meanings given thereto in the Loan Agreement. For
purposes of Section 6.3, the following terms shall have the meanings given
below:

         "Annual Operating Budget" means an annual budget of the operations of
the Properties (broken down on a month-by-month basis and a Property-by-Property
basis) prepared and submitted by Borrower to Lender within 5 days after the
occurrence of a Cash Management Event, and annually thereafter during the
continuance of a Cash Management Event.

         "Cash Management Event" shall mean any one or more of the following:
(i) failure to make any payment under the Notes or any other Loan Document on
the date due or (ii) the occurrence of an Event of Default.

         "Debt Service Payment Sub-Account" means the Sub-Account of the Cash
Collateral Account relating to the payment of principal and interest under the
Notes.

         "Eligible Account" means an interest bearing account maintained with a
federal or state chartered federally insured depository institution or trust
company whose long term unsecured debt obligations are rated at least AA- by two
or more nationally recognized statistical rating organization.

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         "Operating Expense Monthly Installment" means, with respect to a given
month, the amount shown on the Annual Operating Budget for such month.

         "Operating Expense Sub-Account" means the Sub-Account of the Cash
Collateral Account relating to the payment of Operating Expenses.

         "Property Tax Cost" means, with respect to each Property, the real
property taxes, assessments and impositions applicable to such Property.

         "Property Tax Cost Monthly Installment" means, with respect to all of
the Properties, Agent's reasonable and good faith estimate of one-twelfth (1/12)
of the sum of the annual amounts of all Property Tax Cost.

         "Property Tax Cost Sub-Account" means the Sub-Account of the Cash
Collateral Account relating to the payment of Property Tax Cost.

         Section 2.   Cash Management. The Loan Agreement is hereby amended by
deleting Section 6.3 thereof and by substituting therefor the following:

                6.3.  CASH MANAGEMENT.

                      (a)  Collection Account. For so long as any obligations of
                           Borrower to Lender remain outstanding under the Loan
                           Agreement, Borrower agrees as follows:

                           (i)  Borrower shall open and maintain a lockbox
account (the "Collection Account") with Firstar Bank, National Association (the
"Collection Account Bank").

                          (ii)  The Collection Account shall be opened and
maintained in the name of Agent, as mortgagee of Borrower. Upon Agent's
notification to the Collection Account Bank that a Cash Management Event has
occurred, Borrower, each Joint Venture and Alterra, as manager, shall have no
right of withdrawal from the Collection Account. Borrower shall cause (A) the
Joint Ventures to deposit all lease payments under the JV Leases directly into
the Collection Account and shall cause all relevant checks to be payable to the
name of the Collection Account and (B) Alterra, as manager, to cause all
payments from residents of the Properties to be deposited directly into the
Collection Account and to cause all relevant checks to be made payable to the
name of the Collection Account. Without in any way limiting Borrower's
obligations pursuant to the preceding sentence, Borrower shall deposit directly
into the Collection Account all rents, monies or other items of gross revenue
received by Borrower in violation or contravention of the preceding sentence
within five Business Days after receipt thereof. On a daily basis, prior to
Agent's notification to the Collection Account Bank that a Cash Management Event
has occurred, the Collection Account Bank shall transfer funds in the Collection
Account at the end of such day on the instruction of and as designated by
Borrower.

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                          (iii) Borrower may designate a new financial
institution to serve as the Collection Account Bank if approved by Agent in
Agent's reasonable discretion. If the Collection Account Bank resigns pursuant
to the terms of the Collection Account Agreement, Borrower shall replace such
Collection Account Bank with a bank and documentation acceptable to Agent prior
to the date that such resignation becomes effective.

                  (b)     Payments. Prior to the occurrence of a Cash Management
Event, Borrower shall make all payments due under this Agreement and any other
Loan Document from an account of Borrower. After the occurrence of a Cash
Management Event, pursuant to the Collection Account Agreement among the
Collection Account Bank, Borrower and Agent (the "Collection Account
Agreement"), the Collection Account Bank will be authorized and directed to (a)
transfer on a daily basis all funds deposited in the Collection Account to Agent
or Agent's designee to be held in an Eligible Account established by Agent or
Agent's designee (the "Cash Collateral Account"), as directed by Agent, and (b)
take directions only from Agent (and not from Borrower) as to the withdrawal and
disbursement of funds in the Cash Collateral Account and and funds in the
Collection Account. Notwithstanding the foregoing, in the event funds in the
Collection Account are being transferred to the Cash Collateral Account on the
date which is 6 months after the cure of the event which triggered the Cash
Management Event and provided no Cash Management Event exists on such date, as
determined by Agent in its sole discretion, at Agent's direction, such funds
shall no longer be transferred to the Cash Collateral Account and shall be
transferred in accordance with the last sentence of subsection (a)(ii) above
until a Cash Management Event again occurs, in which event the funds in the
Collection Account shall be transferred to the Cash Collateral Account. The Cash
Collateral Account shall be under the sole dominion and control of Agent.
Borrower, each Joint Venture, and Alterra, as manager, shall have no right of
withdrawal from the Cash Collateral Account.

                  (c)     Establishment of Sub-Accounts. The Cash Collateral
Account shall contain a Property Tax Cost Sub-Account, a Debt Service Payment
Sub-Account and an Operating Expense Sub-Account, each of which Sub-Accounts (i)
may be ledger or book entry accounts and need not be actual accounts
(individually, a "Sub-Account" and collectively, the "Sub-Accounts") and (ii)
shall be an Eligible Account to which certain funds shall be allocated and from
which disbursements shall be made pursuant to the terms of this Loan Agreement.

                  (d)     Interest on Accounts. All interest paid or other
earnings on the funds in the Cash Collateral Account shall be income of Borrower
and shall be deposited into the Cash Collateral Account and shall be subject to
allocation and distribution like any other monies deposited therein.

                  (e)     Payment of Property Tax Costs, Debt Service and
Operating Expenses.

                          (i)   Payment of Property Tax Cost.

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                           a. At least five (5) Business Days prior to the Due
Date of any Property Tax Cost payment, Borrower shall notify Agent in writing
and request that Agent make such Property Tax Cost payment on behalf of Borrower
on or prior to the due date thereof. Together with each such request, Borrower
shall furnish Agent with copies of bills and other documentation as may be
reasonably required by Agent to establish that such Property Tax Cost payment is
then due. Agent shall be entitled to conclusively rely on all bills or other
documentation received from Borrower, in each case without independent
investigation or verification. Agent shall make such payments out of the
Property Tax Cost Sub-Account before the same shall be delinquent to the extent
that there are funds available in the Property Tax Cost Sub-Account and Agent
has received appropriate documentation to establish the amounts due and the due
dates as and when provided above.

                           b. Except to the extent that Agent is obligated to
pay Property Tax Cost from the Property Tax Cost Sub-Account pursuant to the
terms of this section, Borrower shall pay all Property Tax Cost with respect to
itself and the Properties in accordance with the provisions of the Mortgages.

                  (ii)     Payment of Debt Service. On the first Business Day of
each month during the term of the Loan, Agent shall transfer to Lenders from the
Debt Service Payment Sub-Account the amount of principal and interest then due
pursuant to the Notes. Borrower shall be deemed to have made timely payment
regardless of the time Agent makes such transfer as long as sufficient funds are
on deposit in the Debt Service Payment Sub-Account at 12:00 noon, New York City
time on the first Business Day of the applicable month.

                  (iii)    Payment of Operating Expenses. Not more frequently
than once each month and provided that Lenders have not accelerated the
Indebtedness due to the occurrence of an Event of Default, Agent shall direct
the Cash Collateral Account Bank to, within five (5) Business Days after Agent's
receipt of an Operating Expense Certificate from Borrower (such Operating
Expense Certificate to be delivered by Borrower not more frequently than once
each month) transfer funds to Borrower or its designee from the Operating
Expense Sub-Account, to the extent that there are funds available therein, in an
amount not to exceed the amount stated in the Operating Expense Certificate up
to the Operating Expense Monthly Installment. Together with each such Operating
Expense Certificate, Borrower shall furnish Agent with an Officer's Certificate
stating that all operating expenses from previous periods have been paid in full
and that all amounts shown on the Operating Expense Certificate are then due or
have been paid.

                  (iv)     Extra Funds for Operating Expenses. Not more
frequently than once each month and provided that Lenders have not accelerated
the Indebtedness due to the occurrence of an Event of Default, if in a given
month Borrower requires amounts in excess of the Operating Expense Monthly
Installment (such excess amounts, "Extra Funds"), Borrower may deliver a written
request to Agent for a disbursement of Extra Funds stating the amount of Extra
Funds and the purpose for such

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amount, together with copies of bills and other documentation as may be required
by Agent to establish that such additional operating expenses are reasonable and
that such amounts are then due or expected to come due in that month. Agent
shall approve or disapprove such request within ten (10) Business Days after
Agent's receipt of such request and, if approved, Agent shall release the Extra
Funds to Borrower or its designee within ten (10) Business Days after Agent's
approval.

                  (f)     Monthly Funding of Sub-Accounts. During each month of
the term of the Loan, Agent shall allocate all funds then on deposit in the Cash
Collateral Account among the Sub-Accounts as follows and in the following
priority:

                           (i)   first, to the Property Tax Cost Sub-Account,
until an amount equal to the Property Tax Cost Monthly Installment for the
current month has been allocated to the Property Tax Cost Sub-Account;

                           (ii)  second, to the Debt Service Payment
Sub-Account, until an amount equal to the payments due on the Notes on the first
Business Day of the next succeeding month has been allocated to the Debt Service
Payment Sub-Account;

                           (iii) third, to the Operating Expense Sub-Account,
until an amount equal to the Operating Expense Monthly Installment for the
current month has been allocated to the Operating Expense Sub-Account; and

                           (iv)  fourth, provided that (i) no Event of Default
has occurred and is continuing and (ii) Agent has received all financial
information described in Section 5.3 for the most current periods for which the
same are due, Lenders agree that in each month any amounts deposited into or
remaining in the Cash Collateral Account after (A) the minimum amounts set forth
in clauses (i), (ii) and (iii) have been satisfied with respect to the current
month and any periods prior thereto and (B) the funding of additional reserves
at levels determined by Borrower to be prudent for working capital and other
Borrower costs, which level shall be satisfactory to Agent in Agent's reasonable
discretion, shall be disbursed by Agent to such account as Borrower may request
in writing. Agent and Lenders shall not be responsible for monitoring Borrower's
use of any funds disbursed from the Cash Collateral Account or any of the
Sub-Accounts.

                           (v)   if an Event of Default has occurred and is
continuing or if on the date due the balance in any Sub-Account is insufficient
to make the required payment due from such Sub-Account, Agent may, in its sole
discretion, in addition to any other rights and remedies available hereunder,
withdraw funds from any other Sub-Account to pay such deficiency. If Lender
elects to apply funds of any such Sub-Account to pay amounts due under the
Notes, Borrower shall, upon demand, repay to Lenders the amount of such
withdrawn funds to replenish such Sub-Account, and if Borrower shall fail to
repay such amount within three (3) Business Days after notice of such
withdrawal, an Event of Default shall exist hereunder.

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                           (g)   Notwithstanding the application of funds from
the Cash Collateral Account as herein provided, for purposes of determining
whether a Property Default has occurred under any Attornment, Subordination and
Non-Disturbance Agreement among Agent, Borrower and a Joint Venture, any
deposits to the Cash Collateral Account constituting Net Cash Flow from the
Project leased to such Joint Venture shall be treated as lease payments under
the applicable JV Lease.

         Section 3.        Counterparts; Effectiveness.

         This Amendment may be executed in any number of counterparts and by
different parties hereto and separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one in the same agreement. This Amendment shall become
effective upon the execution of a copy hereof, whether by the same or different
copies, by the parties hereto.

         Section 4.        Governing Law.

         This Amendment shall be governed by and shall be construed in
accordance with the laws of the State of Illinois.

         Section 5.        Ratification and Reaffirmation.

         Guarantor's obligations under the Guaranty are hereby reaffirmed and
ratified and shall continue in full force and effect not withstanding the
execution and delivery of this Amendment.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                 AHC BORROWER I, INC.,
                                 a Delaware corporation, as Borrower

                                 By: /s/ Kristin A. Ferge
                                    --------------------------------------------
                                          Kristin A. Ferge
                                          Vice President

                                 HELLER HEALTHCARE FINANCE, INC.
                                 a Delaware corporation, as Agent and a Lender

                                 By: /s/ Brett Robinson
                                    --------------------------------------------
                                          Brett Robinson
                                          Vice President

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                                 ALTERRA HEALTHCARE CORPORATION,
                                 a Delaware corporation, as Guarantor

                                 By: /s/ Kristin A. Ferge
                                    --------------------------------------------
                                          Kristin A. Ferge
                                          Vice President

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