Document:

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                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                                  $150,000,000

                         GENESIS HEALTHCARE CORPORATION

                 2.5% CONVERTIBLE SENIOR SUBORDINATED DEBENTURES
                                    DUE 2025

                               PURCHASE AGREEMENT

                                                               February 24, 2005

Wachovia Capital Markets, LLC
   As Representative of the Several
   Initial Purchasers named in Schedule
   I hereto
c/o Wachovia Capital Markets, LLC
301 South College Street, 4th Floor
Charlotte, North Carolina 28288-0735

Dear Sirs and Mesdames:

      Genesis HealthCare Corporation, a Pennsylvania corporation (the
"COMPANY"), confirms its agreement with respect to the proposed issuance and
sale to the several purchasers named in Schedule I hereto (the "INITIAL
PURCHASERS") of $150,000,000 principal amount of the Company's 2.5% Convertible
Senior Subordinated Debentures Due 2025 (the "FIRM SECURITIES") to be issued
pursuant to the provisions of an Indenture to be dated as of March 2, 2005 (the
"INDENTURE") among the Company, the Guarantors (as defined below), and The Bank
of New York, as Trustee (the "TRUSTEE"). The Company also proposes to issue and
sell to the Initial Purchasers not more than an additional $30,000,000 principal
amount of its 2.5% Convertible Senior Subordinated Debentures Due 2025 (the
"ADDITIONAL SECURITIES", and together with the Firm Securities, the
"SECURITIES") if and to the extent that you shall have determined to exercise,
on behalf of the Initial Purchasers, the right to purchase such Additional
Securities granted to the Initial Purchasers in Section 2 hereof. Subject to the
provisions of the Indenture, the Securities will be fully and unconditionally
guaranteed (the "SUBSIDIARY GUARANTEES") on an unsecured senior subordinated
basis by all of the domestic subsidiaries of the Company listed on the signature
pages to this Agreement and certain of the Company's future domestic
subsidiaries (collectively, the "GUARANTORS"). The Securities will be
convertible into shares of Common Stock, par value $0.01 per share, of the
Company (the "COMMON STOCK", and such shares into which the Securities are
convertible, the "UNDERLYING SECURITIES").

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      Wachovia Capital Markets, LLC has agreed to act as the sole book-running
manager and as Representative of the Initial Purchasers (in such capacity, the
"REPRESENTATIVE") in connection with the offering and sale of the Securities.

      The Securities, the Underlying Securities and the Subsidiary Guarantees
will be offered without being registered under the Securities Act of 1933, as
amended (the "SECURITIES ACT"), to qualified institutional buyers in compliance
with the exemption from registration provided by Rule 144A under the Securities
Act.

      The Initial Purchasers and their direct and indirect transferees will be
entitled to the benefits of a Registration Rights Agreement (the "REGISTRATION
RIGHTS AGREEMENT"), to be dated the Closing Date (as defined herein) among the
Company, the Guarantors and the Initial Purchasers.

      The Company has prepared and delivered to each Initial Purchaser copies of
a preliminary offering memorandum dated February 23, 2005 (the "PRELIMINARY
MEMORANDUM") and has prepared and will deliver to each Initial Purchaser, on the
date hereof or the next succeeding day, copies of a final offering memorandum
dated February 24, 2005 (the "FINAL MEMORANDUM"), each for use by such Initial
Purchaser in connection with its solicitation of purchases of, or offering of,
the Securities. "MEMORANDUM" means, with respect to any date or time referred to
in this Agreement, the most recent offering memorandum (whether the Preliminary
Memorandum or the Final Memorandum, or any amendment or supplement to either
such document), including exhibits thereto and any documents incorporated by
reference therein, which has been prepared and delivered by the Company to the
Initial Purchasers in connection with their solicitation of purchases of, or
offering of, the Securities. The terms "SUPPLEMENT", "AMENDMENT" and "AMEND" as
used herein with respect to a Memorandum shall include all documents
incorporated by reference in the Memorandum that are filed subsequent to the
date of the Memorandum with the Securities and Exchange Commission (the
"COMMISSION") pursuant to the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT").

      All references in this Agreement to the Common Stock shall be deemed to
include the rights evidenced by such Common Stock to the extent provided in the
Rights Agreement dated as of November 18, 2003 between the Company and
StockTrans, Inc., as rights agent.

      1. Representations and Warranties. The Company and each of the Guarantors
jointly and severally represent and warrant to, and agree with, you that:

            (a) (i) Each document, if any, filed or to be filed pursuant to the
      Exchange Act and incorporated by reference in the Memorandum complied when
      filed or will comply when so filed in all material respects with the
      Exchange Act and the applicable rules and regulations of the

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      Commission thereunder and (ii) the Memorandum, in the form used by the
      Initial Purchasers to confirm sales, as of its date and the Closing Date
      (as defined in Section 4), will not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the
      statements therein, in the light of the circumstances under which they
      were made, not misleading, except that the representations and warranties
      set forth in this paragraph do not apply to statements or omissions in the
      Memorandum based upon information relating to any Initial Purchaser
      furnished to the Company in writing by such Initial Purchaser through you
      expressly for use therein.

            (b) The Memorandum has been prepared by the Company for use by the
      Initial Purchasers as contemplated herein. No order or decree preventing
      the use of the Memorandum, or any order asserting that the transactions
      contemplated by this Agreement are subject to the registration
      requirements of the Securities Act has been issued and no proceeding for
      that purpose has commenced or is pending or, to the knowledge of the
      Company or any of the Guarantors, is contemplated.

            (c) The Company has been duly incorporated, is validly existing as a
      corporation in good standing under the laws of the Commonwealth of
      Pennsylvania, has the corporate power and authority to own its property
      and to conduct its business as described in the Memorandum and is duly
      qualified to transact business and is in good standing in each
      jurisdiction in which the conduct of its business or its ownership or
      leasing of property requires such qualification, except to the extent that
      the failure to be so qualified or be in good standing would not have a
      material adverse effect on the condition, financial or otherwise, or in
      the earnings, business affairs or business prospects of the Company and
      its subsidiaries, considered together as one enterprise, whether or not
      arising in the ordinary course of business (a "MATERIAL ADVERSE EFFECT").

            (d) Each of the subsidiaries of the Company has been duly
      incorporated, organized or formed, as the case may be, and is validly
      existing as a corporation, limited liability company or limited
      partnership, as the case may be, in good standing under the laws of its
      jurisdiction of incorporation, organization or formation; each of the
      subsidiaries of the Company has power and authority to own, lease and
      operate its properties and to conduct its business as described in the
      Memorandum, is duly qualified as a foreign entity to transact business and
      is in good standing in each jurisdiction in which such qualification is
      required, whether by reason of the ownership or leasing of property or the
      conduct of business, except where the failure so to qualify or to be in
      good standing would not have a Material Adverse Effect; the issued and
      outstanding capital stock or ownership interests, as the case may be, of
      each of the Company's subsidiaries has been duly authorized and validly
      issued, is fully paid and non-assessable, and, other than those
      subsidiaries listed in Schedule 1(d),

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      is owned by the Company, directly or indirectly, free and clear of any
      security interest, mortgage, pledge, lien, encumbrance or claim, other
      than such security interests, mortgages, pledges, liens, encumbrances or
      claims pursuant to the Company's Senior Credit Agreement dated as of
      December 1, 2003, as amended; none of the outstanding shares of capital
      stock or ownership interests, as the case may be, of any of the Company's
      subsidiaries held directly or indirectly by the Company was issued in
      violation of the preemptive or similar rights of any securityholder of
      such subsidiary.

            (e) This Agreement has been duly authorized, executed and delivered
      by the Company and each of the Guarantors.

            (f) The authorized capital stock of the Company conforms as to legal
      matters to the description thereof contained in the Memorandum.

            (g) The shares of Common Stock outstanding prior to the issuance of
      the Securities have been duly authorized and are validly issued, fully
      paid and non-assessable.

            (h) The Company and each of the Guarantors have all requisite
      corporate, limited liability company, partnership or limited liability
      partnership, as the case may be, power and authority to enter into this
      Agreement and perform their respective obligations hereunder.

            (i) The Company has all requisite corporate power and authority to
      execute, issue and deliver the Securities and perform its obligations
      thereunder. The Firm Securities and the Additional Securities have been
      duly authorized and, when executed and authenticated in accordance with
      the provisions of the Indenture and delivered to and paid for by the
      Initial Purchasers in accordance with the terms of this Agreement, will be
      valid and binding obligations of the Company, enforceable in accordance
      with their terms, subject to applicable bankruptcy, fraudulent conveyance,
      insolvency, reorganization, moratorium and similar laws affecting
      creditors' rights generally and equitable principles of general
      applicability and an implied covenant of good faith and fair dealing, and
      will be entitled to the benefits of the Indenture and the Registration
      Rights Agreement.

            (j) The Company has all requisite corporate power and authority to
      execute, issue and deliver the Underlying Securities. The Underlying
      Securities issuable upon conversion of the Securities have been duly
      authorized and reserved and, when issued upon conversion of the Securities
      in accordance with the terms of the Securities, will be validly issued,
      fully paid and non-assessable, and the issuance of the Underlying
      Securities will not be subject to any preemptive or similar rights.

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            (k) Each of the Guarantors has all requisite corporate, limited
      liability company, partnership or limited liability partnership, as the
      case may be, power and authority to execute, issue and deliver the
      Subsidiary Guarantees and perform its obligations thereunder. The
      Subsidiary Guarantees have been duly authorized by each of the Guarantors
      and when the Subsidiary Guarantees are duly endorsed on the Securities in
      accordance with the terms of the Indenture and delivered to and paid for
      by the Initial Purchasers pursuant to this Agreement on the Closing Date,
      assuming due authorization of the Securities by the Trustee, such
      Subsidiary Guarantees will constitute legally valid and binding
      obligations of the respective Guarantors, entitled to the benefits of the
      Indenture and enforceable against the respective Guarantors in accordance
      with their terms, subject to applicable bankruptcy, fraudulent conveyance,
      insolvency, reorganization, moratorium and similar laws affecting
      creditors' rights generally and equitable principles of general
      applicability and an implied covenant of good faith and fair dealing.

            (l) The Company and each of the Guarantors have all requisite
      corporate, limited liability company, partnership or limited liability
      partnership, as the case may be, power and authority to enter into the
      Indenture and the Registration Rights Agreement, and to perform their
      respective obligations thereunder. Each of the Indenture and the
      Registration Rights Agreement has been duly authorized, and when executed
      and delivered by the Company and each of the Guarantors, will be a valid
      and binding agreement of the Company and each of the Guarantors,
      enforceable in accordance with its terms, subject to applicable
      bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium
      and similar laws affecting creditors' rights generally and equitable
      principles of general applicability and an implied covenant of good faith
      and fair dealing and except as rights to indemnification and contribution
      under the Registration Rights Agreement may be limited by applicable law.

            (m) The execution and delivery by the Company and each of the
      Guarantors, and the performance by the Company and each of the Guarantors,
      as the case may be, of their obligations under, this Agreement, the
      Indenture, the Registration Rights Agreement, the Securities and the
      Subsidiary Guarantees will not result in (i) the violation of any
      provision of applicable law or the certificate of incorporation or by-laws
      or other constitutive documents of the Company or any such Guarantor, or
      any judgment, order or decree of any governmental body, agency or court
      having jurisdiction over any such entity, or (ii) breach of, or default
      under, any agreement or other instrument binding upon any such entity that
      is material to the Company and its subsidiaries, considered together as
      one enterprise, or to which any of the property or assets of any such
      entity is subject, and no consent, approval, authorization or order of, or
      qualification with, any governmental body or agency is required for the

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      performance by any such entity of their respective obligations under this
      Agreement, the Indenture, the Registration Rights Agreement, the
      Securities and the Subsidiary Guarantees, as the case may be, except such
      as may be required by the securities or Blue Sky laws of the various
      states in connection with the offer and sale of the Securities, Subsidiary
      Guarantees and Underlying Securities and by Federal and state securities
      laws with respect to the conversion of the Securities and the obligations
      of the Company and the Guarantors under the Registration Rights Agreement.

            (n) The subsidiaries of the Company set forth on Schedule II hereto
      comprise approximately 64% of the Company's total revenue under generally
      accepted accounting principles in the United States for the fiscal year
      ended September 30, 2004, as reported in the Company's annual report on
      Form 10-K for such fiscal year, and no other subsidiary of the Company
      represented greater than 3% of the Company's total revenue under generally
      accepted accounting principles in the United States for such fiscal year.

            (o) Except for the registration rights contained in the Registration
      Rights Agreement, the Company has not granted or agreed to grant to any
      Person any rights (including "piggy-back" registration rights) to have any
      securities of the Company registered with the Commission or any other
      governmental authority that have not been satisfied.

            (p) There are no voting agreements, voting trusts, proxies or other
      agreements or understandings with respect to the voting of any capital
      stock of the Company or any of its subsidiaries to which the Company or
      any of its subsidiaries is a party.

            (q) Except as otherwise disclosed in the Memorandum, subsequent to
      the respective dates as of which information is given in the Memorandum,
      (i) there has not occurred any material adverse change in the condition,
      financial or otherwise, or in the earnings, business affairs or business
      prospects of the Company and its subsidiaries, considered together as one
      enterprise, whether or not arising in the ordinary course of business;
      (ii) the Company and its subsidiaries, considered as one entity, have not
      incurred any material liability or obligation, indirect, direct or
      contingent, not in the ordinary course of business nor entered into any
      material transaction or agreement not in the ordinary course of business;
      and (iii) there has been no dividend or distribution of any kind declared,
      paid or made by the Company or, except for dividends paid to the Company
      or its subsidiaries, any of its subsidiaries on any class of capital stock
      or repurchase or redemption by the Company or any of its subsidiaries of
      any class of capital stock.

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            (r) None of the Company or any of its subsidiaries is (i) in
      violation of its charter or by-laws or its partnership or operating
      agreement, as applicable; (ii) in default, and no event has occurred
      which, with notice or the lapse of time or both, would constitute such a
      default, in the due performance or observance of any obligation,
      agreement, covenant or condition contained in any indenture, loan
      agreement, mortgage, lease or other agreement or instrument that is
      material to the Company and its subsidiaries, considered together as one
      enterprise and to which such entity is a party or by which such entity or
      its property is bound; or (iii) to the knowledge of the Company, is in
      violation in any respect of any law, ordinance, governmental rule,
      regulation or court decree to which it or its property or assets may be
      subject, except for such defaults that would not, singly or in the
      aggregate, have a Material Adverse Effect.

            (s) No subsidiary of the Company is currently prohibited, directly
      or indirectly, from paying dividends to the Company, from making any other
      distribution on such subsidiary's capital stock, from repaying to the
      Company any loans or advances to such subsidiary from the Company or from
      transferring any of such subsidiary's property or assets to the Company or
      any other subsidiary of the Company, except as described in the
      Memorandum.

            (t) There are no legal or governmental proceedings pending or, to
      the knowledge of the Company, threatened to which the Company or any of
      its subsidiaries is a party or to which any of the properties of such
      entity is subject other than proceedings accurately described in all
      material respects in the Memorandum and proceedings that would not have a
      Material Adverse Effect or a material adverse effect on the ability of the
      Company or any of the Guarantors to perform their respective obligations
      under the Purchase Agreement, the Indenture, the Registration Rights
      Agreement, the Securities and the Subsidiary Guarantees or to consummate
      the transactions contemplated therein.

            (u) The Company and each of its subsidiaries (i) are in compliance
      with any and all applicable foreign, federal, state and local laws and
      regulations relating to the protection of human health and safety, the
      environment or hazardous or toxic substances or wastes, pollutants or
      contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits,
      licenses or other approvals required of it under applicable Environmental
      Laws to conduct their respective businesses, (iii) are in compliance with
      all terms and conditions of any such permit, license or approval, (iv) are
      in compliance with any applicable provision of the Employee Retirement
      Income Security Act of 1974, as amended, ("ERISA") or the rules and
      regulations promulgated thereunder and (v) are in compliance with any
      applicable provision of the Foreign Corrupt Practice Act of 1977, as
      amended, or the rules and regulations promulgated thereunder, except where
      such noncompliance with Environmental Laws, failure to receive

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      required permits, licenses or other approvals, failure to comply with the
      terms and conditions of such permits, licenses or approvals, or
      noncompliance with ERISA or the Foreign Corrupt Practices Act of 1977, as
      amended, would not in each case, singly or in the aggregate, have a
      Material Adverse Effect.

            (v) There are no costs or liabilities associated with Environmental
      Laws (including, without limitation, any capital or operating expenditures
      required for clean-up, closure of properties or compliance with
      Environmental Laws or any permit, license or approval, any related
      constraints on operating activities and any potential liabilities to third
      parties) which would, singly or in the aggregate, have a Material Adverse
      Effect.

            (w) The Company is not, and after giving effect to the offering and
      sale of the Securities and the application of the proceeds thereof as
      described in the Memorandum will not be, an "investment company" as such
      term is defined in the Investment Company Act of 1940, as amended.

            (x) Neither the Company nor any of its affiliates (as defined in
      Rule 501(b) of Regulation D under the Securities Act, each an "AFFILIATE")
      has directly, or through any agent, (i) sold, offered for sale, solicited
      offers to buy or otherwise negotiated in respect of, any security (as
      defined in the Securities Act) which is or will be integrated with the
      sale of the Securities in a manner that would require the registration
      under the Securities Act of the Securities, the Underlying Securities and
      the Subsidiary Guarantees or (ii) offered, solicited offers to buy or sold
      the Securities by any form of general solicitation or general advertising
      (as those terms are used in Regulation D under the Securities Act) or in
      any manner involving a public offering within the meaning of Section 4(2)
      of the Securities Act.

            (y) Based on the representations and warranties of the Initial
      Purchasers and compliance with the covenants by the Initial Purchasers as
      set forth in Section 7 of this Agreement, it is not necessary in
      connection with the offer, sale and delivery of the Securities to the
      Initial Purchasers in the manner contemplated by this Agreement to
      register the Securities, the Subsidiary Guarantees or the Underlying
      Securities under the Securities Act or to qualify the Indenture under the
      Trust Indenture Act of 1939, as amended.

            (z) The Securities satisfy the requirements set forth in Rule
      144A(d)(3) under the Securities Act.

            (aa) The Company has established and maintained disclosure controls
      and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) which
      (i) are designed to ensure that material information relating to the
      Company and its subsidiaries is made known to its chief executive

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      officer and chief financial officer by others within the Company and its
      subsidiaries; (ii) have been evaluated for effectiveness as of the date of
      the most recent annual and quarterly reports of the Company; and (iii) are
      effective in all material respects to perform the functions for which they
      were established.

            (bb) Based on the evaluation of its disclosure controls and
      procedures, and other than as disclosed in the Company's quarterly report
      for the quarter ended December 31, 2004, the Company is not aware of (i)
      any significant deficiency in the design or operation of its internal
      controls which could adversely affect its ability to record, process,
      summarize and report financial data or any material weaknesses in internal
      controls; or (ii) any fraud, whether or not material, that involves
      management or other employees who have a significant role in its internal
      controls.

            (cc) Since the date of the most recent evaluation of such disclosure
      controls and procedures, and other than as disclosed in the Company's
      quarterly report for the quarter ended December 31, 2004, there have been
      no significant changes in internal controls or in other factors that could
      significantly affect internal controls, including any corrective actions
      with regard to significant deficiencies and material weaknesses.

            (dd) The Company has complied and will comply with the currently
      applicable provisions of the Sarbanes-Oxley Act of 2002, and to the best
      of the Company's knowledge, its directors and officers in their capacities
      as such have complied and will comply with the currently applicable
      provisions of the Sarbanes-Oxley Act of 2002.

            (ee) The books, records and accounts of the Company and each of its
      subsidiaries accurately and fairly reflect, in reasonable detail, the
      transactions in, and dispositions of, the assets of, and the results of
      operations of, such entity. The Company and each of its subsidiaries,
      taken as a whole, maintain a system of accounting controls sufficient to
      provide reasonable assurances that (a) transactions are executed in
      accordance with management's general or specific authorization, (b)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles in
      the United States and to maintain accountability for assets and (c) access
      to assets is permitted only in accordance with management's general or
      specific authorization.

            (ff) The Company and each of its subsidiaries own or possess, or own
      or possess licenses or other rights to use, all material patents, patent
      rights, licenses, inventions, copyrights, know-how (including trade
      secrets and other unpatented and/or unpatentable proprietary or
      confidential information, systems or procedures), trademarks, service

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      marks and trade names (collectively, the "INTELLECTUAL PROPERTY")
      currently employed or required by such entity in connection with the
      business currently conducted by such entity as described in the
      Memorandum, except such as the failure to so own or possess would not
      have, singly or in the aggregate, a Material Adverse Effect.

            (gg) The Company and each of its subsidiaries have all material
      permits, licenses, consents, exemptions, franchises, authorizations and
      other approvals (each, an "AUTHORIZATION") of, and have made all filings
      with and notices to, all appropriate federal, state, local or foreign
      governmental or regulatory authorities and self regulatory organizations
      and all courts and other tribunals, as are necessary to own, lease,
      license and operate their respective properties and to conduct their
      respective businesses, except to the extent the failure to have any such
      Authorization or to make any such filing or notice would not, singly or in
      the aggregate, have a Material Adverse Effect. Each such Authorization is
      valid and in full force and effect and such entity is in compliance with
      all the terms and conditions thereof and with the rules and regulations of
      the authorities and governing bodies having jurisdiction with respect
      thereto; and no event has occurred (including, without limitation, the
      receipt of any notice from any authority or governing body) which allows
      or, after notice or lapse of time or both, would allow, revocation,
      suspension or termination of any such Authorization or results or, after
      notice or lapse of time or both, would result in any other impairment of
      the rights of the holder of any such Authorization; and such
      Authorizations contain no restrictions that are burdensome to such entity;
      except to the extent such failure to be valid and in full force and effect
      or to be in compliance, the occurrence of any such event or the presence
      of any such restriction would not, singly or in the aggregate, have a
      Material Adverse Effect.

            (hh) There are no outstanding subscriptions, rights, warrants,
      options, calls or convertible securities, granted or issued by the Company
      or any of its subsidiaries relating to or entitling any person to purchase
      or otherwise to acquire any shares of the capital stock of such entity,
      except for options and restricted stock granted to directors and employees
      of the Company in the ordinary course of business or as described in the
      Memorandum.

            (ii) The financial statements of the Company included or
      incorporated by reference in the Memorandum, together with related
      schedules and notes, present fairly the financial position, results of
      operations and changes in financial position of the Company on the basis
      stated therein at the respective dates or for the respective periods to
      which they apply; such statements and related schedules and notes have
      been prepared in accordance with generally accepted accounting principles
      in the United States consistently applied throughout the periods involved;
      and the other financial and statistical information and data of the
      Company

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      set forth in the Memorandum are, in all material respects, accurately
      presented and prepared on a basis consistent with such financial
      statements and the books and records of the Company. The financial
      information relating to the Company set forth under the captions "Summary-
      Summary Financial and Operating Data" and "Capitalization" in the
      Memorandum are derived from the accounting records of the Company and its
      subsidiaries and fairly present, on the basis stated in the Memorandum,
      the information included therein. The pro forma financial information of
      the Company and its subsidiaries included or incorporated by reference in
      the Memorandum present fairly the information contained therein, have been
      prepared in accordance with the Commission's rules and guidelines with
      respect to pro forma financial information and have been properly
      presented on the bases described therein, and the assumptions used in the
      preparation thereof are reasonable and the adjustments used therein are
      appropriate to give effect to the transactions and circumstances referred
      to therein.

            (jj) KPMG LLP, who have certified certain financial statements of
      the Company, whose reports appear or are incorporated by reference in the
      Memorandum and who have delivered the letters referred to in Section 7
      hereof, are independent public accountants as required by the Securities
      Act and the rules and regulations of the Commission.

            (kk) There are no existing or, to the knowledge of the Company,
      threatened labor disputes with the employees of the Company or any of its
      subsidiaries which would have a Material Adverse Effect.

            (ll) The statements relating to legal matters, documents or
      proceedings included in the Memorandum under the captions "Description of
      Capital Stock", "Business -- Revenue Sources" and "Business -- Government
      Regulation" and in "Item 3 -- Legal Proceedings" of the Company's most
      recent annual report on Form 10-K incorporated by reference in the
      Memorandum, and in "Part II Item 1 -- Legal Proceedings" of the Company's
      most recent quarterly report on Form 10-Q incorporated by reference in the
      Memorandum, insofar as such descriptions constitute a summary of the legal
      matters, documents or proceedings referred to therein, fairly summarize in
      all material respects such matters, documents or proceedings.

            (mm) Neither the Company, nor to its knowledge, any of its officers,
      directors or affiliates has taken, or will take, directly or indirectly,
      any action designed to or which might reasonably be expected to cause or
      result in, or which has constituted or which might reasonably be expected
      to constitute, the stabilization or manipulation of the price of the
      Common Stock or any security convertible into or exchangeable for Common
      Stock to facilitate the sale or resale of any of the Securities.

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            (nn) The Company and each of its subsidiaries have filed all
      Federal, state, local and foreign tax returns which are required to be
      filed through the date hereof (except where the failure to so file would
      not be reasonably likely to have a Material Adverse Effect), which returns
      are true and correct in all material respects, or have received extensions
      thereof, and have paid all taxes shown on such returns and all assessments
      received by them to the extent that the same are material and have become
      due. There are no tax audits or investigations pending, which if adversely
      determined, would have a Material Adverse Effect.

            (oo) The Company and each of its subsidiaries are insured against
      such losses and risks and in such amounts containing such deductibles and
      covering such risks as are customary in the businesses in which they are
      engaged. None of the Company or any of its subsidiaries has reason to
      believe that it will not be able to renew its existing insurance coverage
      as and when such coverage expires or to obtain similar coverage from
      similar insurers as may be necessary to continue its business at a cost
      that would not have a Material Adverse Effect.

            (pp) None of the Company or any of its subsidiaries or, to the
      knowledge of the Company and its subsidiaries, any other person associated
      with or acting on behalf of such entity including, without limitation, any
      director, officer, agent or employee of such entity has, directly or
      indirectly, while acting on behalf of such entity (i) used any corporate
      funds for unlawful contributions, gifts, entertainment or other unlawful
      expenses relating to political activity; (ii) made any unlawful payment to
      foreign or domestic government officials or employees or to foreign or
      domestic political parties or campaigns from corporate funds; (iii)
      violated any provision of the Foreign Corrupt Practices Act of 1977, as
      amended; or (iv) made any other unlawful payment.

            (qq) The Company and each of its subsidiaries have good and
      marketable title in fee simple to all real property and good and
      marketable title to all personal property owned by such entity, in each
      case free and clear of all liens, encumbrances and defects, other than
      mortgages with respect to real property owned by the Company or its
      subsidiaries in the ordinary course of business, except such as are
      described in the Memorandum or such as would not have a Material Adverse
      Effect. Any real property and buildings held under lease by such entity is
      held by it under valid, subsisting and enforceable leases with such
      exceptions as are not material and do not interfere with the use made and
      proposed to be made of such property and buildings by such entity.

            (rr) The industry, statistical and market-related data included or
      incorporated by reference in the Memorandum are derived from sources that
      the Company reasonably and in good faith believes to be accurate,

                                       12
<PAGE>

      reasonable and reliable, and such data agrees with the sources from which
      they were derived.

            (ss) The Indenture, the Registration Rights Agreement, the
      Securities, the Underlying Securities and the Subsidiary Guarantees will
      conform as of the Closing Date in all material respects to the
      descriptions thereof contained in the Memorandum.

            (tt) There is no document, contract or other agreement of a
      character required to be filed under the Exchange Act which is not
      described or filed as required by the Exchange Act or the rules and
      regulations of the Commission thereunder. Each description of a contract,
      document or other agreement in the Memorandum fairly reflects in all
      respects the material terms of the underlying document, contract or
      agreement. Each agreement described in the Memorandum or incorporated by
      reference is in full force and effect and is valid and enforceable by and
      against the Company or a subsidiary, as the case may be, in accordance
      with its terms.

            (uu) Each certificate signed by any officer of the Company or any
      Guarantor and delivered to the Initial Purchasers or counsel to the
      Initial Purchasers shall be deemed to be a representation and warranty by
      the Company or such Guarantor to the Initial Purchasers as to the matters
      covered thereby.

      2. Agreements to Sell and Purchase. The Company hereby agrees to sell to
the several Initial Purchasers, and each Initial Purchaser, upon the basis of
the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly, to purchase
from the Company the respective principal amount of Firm Securities set forth in
Schedule I hereto opposite its name at a purchase price of 97.3% of the
principal amount thereof (the "PURCHASE PRICE").

      On the basis of the representations and warranties contained in this
Agreement, and subject to its terms and conditions, the Company agrees to sell
to the Initial Purchasers the Additional Securities, and the Initial Purchasers
shall have the right to purchase, severally and not jointly, up to $30,000,000
principal amount of Additional Securities at the Purchase Price plus accrued
interest, if any, to the date of payment and delivery. You may exercise this
right on behalf of the Initial Purchasers in whole or from time to time in part
by giving written notice not later than 30 days after the Closing Date. Any
exercise notice shall specify the principal amount of Additional Securities to
be purchased by the Initial Purchasers and the date on which such Additional
Securities are to be purchased. Each purchase date must be at least one business
day after the written notice is given and may not be earlier than the closing
date for the Firm Securities nor later than ten business days after the date of
such notice. On each day, if any, that Additional Securities are to be purchased
(an "OPTION CLOSING DATE"), each

                                       13
<PAGE>

Initial Purchaser agrees, severally and not jointly, to purchase the principal
amount of Additional Securities (subject to such adjustments to eliminate
fractional Securities as you may determine) that bears the same proportion to
the total principal amount of Additional Securities to be purchased on such
Option Closing Date as the principal amount of Firm Securities set forth in
Schedule I opposite the name of such Initial Purchaser bears to the total
principal amount of Firm Securities.

      The Company hereby agrees that, without the prior written consent of the
Representative, on behalf of the Initial Purchasers, it will not, during the
period ending 90 days after the date of the Memorandum, (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, lend, or
otherwise transfer or dispose of, directly or indirectly, any shares of Common
Stock or any securities convertible into or exercisable or exchangeable for
Common Stock or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
the Common Stock, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Stock or such other securities, in
cash or otherwise. The foregoing sentence shall not apply to (A) the sale of the
Securities under this Agreement, (B) the granting of options and restricted
stock pursuant to the Company's employee benefit plans existing on the date
hereof or (C) the issuance by the Company of any shares of Common Stock upon the
exercise of an option or warrant or the conversion of a security outstanding on
the date hereof of which the Initial Purchasers have been advised in writing.

      3. Terms of Offering. You have advised the Company that the Initial
Purchasers will make an offering of the Securities purchased by the Initial
Purchasers hereunder on the terms to be set forth in the Memorandum, as soon as
practicable after this Agreement is entered into as in your judgment is
advisable.

      4. Payment and Delivery. Payment for the Firm Securities shall be made to
the Company in Federal or other funds immediately available in New York City
against delivery of such Firm Securities for the respective accounts of the
several Initial Purchasers at 10:00 a.m., New York City time, on March 2, 2005,
or at such other time on the same or such other date, not later than March 14,
2005, as shall be agreed upon by the Company and you. The time and date of such
payment are hereinafter referred to as the "CLOSING DATE."

      Payment for any Additional Securities shall be made to the Company in
Federal or other funds immediately available in New York City against delivery
of such Additional Securities for the respective accounts of the several Initial
Purchasers at 10:00 a.m., New York City time, on the date specified in the
corresponding notice described in Section 2 or at such other time on the same or
on such other date, in any event not later than April 11, 2005 as shall be
agreed upon by the Company and you.

                                       14
<PAGE>

      The Securities shall be in definitive form or global form, as specified by
you, and registered in such names and in such denominations ($1,000 or integral
multiples of $1,000 in excess thereof) as you shall request in writing not later
than one full business day prior to the Closing Date or the applicable Option
Closing Date, as the case may be. The Securities shall be delivered to you on
the Closing Date or an Option Closing Date, as the case may be, for the account
of the Initial Purchaser, with any transfer taxes payable in connection with the
transfer of the Securities to the Initial Purchaser duly paid, against payment
of the Purchase Price therefor plus accrued interest, if any, to the date of
payment and delivery.

      5. Conditions to the Initial Purchasers' Obligations. The several
obligations of the Initial Purchasers to purchase and pay for the Firm
Securities are subject to the accuracy, when made and on the Closing Date, of
the representations and warranties of the Company and each of the Guarantors, to
the performance by the Company and each of the Guarantors of their respective
obligations hereunder and to each of the following additional terms and
conditions:

            (a) Subsequent to the execution and delivery of this Agreement and
      prior to the Closing Date:

                  (i) there shall not have occurred any downgrading, nor shall
            any notice have been given of any intended or potential downgrading
            or of any review for a possible change that does not indicate the
            direction of the possible change, in the rating accorded the Company
            or any of the Company's securities or in the rating outlook for the
            Company by any "nationally recognized statistical rating
            organization," as such term is defined for purposes of Rule
            436(g)(2) under the Securities Act; and

                  (ii) there shall not have occurred any change, or any
            development involving a prospective change, in the condition,
            financial or otherwise, or in the earnings, business or operations
            of the Company and its subsidiaries taken as one enterprise, from
            that set forth in the Memorandum provided to prospective purchasers
            of the Securities that, in your judgment, is material and adverse
            and that makes it, in your judgment, impracticable to market the
            Securities on the terms and in the manner contemplated in the
            Memorandum.

            (b) The Initial Purchasers shall have received on the Closing Date a
      certificate, dated the Closing Date and signed by an executive officer of
      the Company, to the effect set forth in Section 5(a)(i) and to the effect
      that the representations and warranties of the Company and of the
      Guarantors contained in this Agreement are true and correct as of the
      Closing Date and that the Company and each of the Guarantors have complied
      with all of the agreements and satisfied all of the conditions on

                                       15
<PAGE>

      their part to be performed or satisfied hereunder on or before the Closing
      Date.

            The officer signing and delivering such certificate may rely upon
      the best of his or her knowledge as to proceedings threatened.

            (c) The Initial Purchasers shall have received on the Closing Date
      an opinion of (i) Blank Rome LLP, outside counsel for the Company, dated
      the Closing Date, to the effect set forth in Exhibit A and (ii) Murtha
      Cullina LLP, New Hampshire outside counsel for the Company, relating to
      certain matters regarding McKerley Health Care Centers, Inc. Such opinions
      shall be rendered to the Initial Purchasers at the request of the Company
      and shall so state therein.

            (d) The Initial Purchasers shall have received on the Closing Date
      an opinion of Davis Polk & Wardwell, counsel for the Initial Purchasers,
      dated the Closing Date, to the effect set forth in Exhibit B.

            (e) The Initial Purchasers shall have received on each of the date
      hereof and the Closing Date a letter, dated the date hereof or the Closing
      Date, as the case may be, in form and substance satisfactory to the
      Initial Purchasers, from KPMG LLP, independent public accountants, with
      respect to the financial information contained in the Memorandum relating
      to the Company, containing statements and information of the type
      ordinarily included in accountants' "comfort letters" to underwriters with
      respect to the financial statements and certain financial information
      contained in or incorporated by reference into each Memorandum; provided
      that, in the case of the letter delivered on the Closing Date, such letter
      shall use a "cut-off date" not earlier than the date hereof.

            (f) The "lock-up" agreements, each substantially in the form of
      Exhibit C hereto, between you and each of the executive officers of the
      Company listed on Schedule III hereto relating to sales and certain other
      dispositions of shares of Common Stock or certain other securities,
      delivered to you on or before the date hereof, shall be in full force and
      effect on the Closing Date.

            (g) The Company and the Trustee shall have entered into the
      Indenture, and the Initial Purchasers shall have received counterparts,
      conformed as executed, thereof, and the Securities shall have been duly
      executed and delivered by the Company and authenticated by the Trustee.

            (h) The Company, the Initial Purchasers and the Guarantors shall
      have entered into the Registration Rights Agreement.

            (i) The Company and the Lenders party thereto shall have entered
      into the Amended and Restated Credit Agreement (as defined in the
      Memorandum).

                                       16
<PAGE>

      The several obligations of the Initial Purchasers to purchase Additional
Securities hereunder are subject to the delivery to you on the applicable Option
Closing Date of such documents as you may reasonably request with respect to the
good standing of the Company and the Guarantors, the due authorization,
execution and authentication of the Additional Securities (including the
Subsidiary Guarantees) to be sold on such Option Closing Date and other matters
as you may reasonably request.

      6. Covenants of the Company. In further consideration of the agreements of
the Initial Purchasers contained in this Agreement, the Company and each of the
Guarantors covenant with each Initial Purchaser as follows:

            (a) The Company will furnish to you in New York City, without
      charge, as soon as available on the business day next succeeding the date
      of this Agreement and during the period mentioned in Section 6(b), as many
      copies of the Memorandum, any documents incorporated by reference therein
      and any supplements and amendments thereto as you may reasonably request.
      (b) Before amending or supplementing the Memorandum, the Company will
      furnish to you a copy of each such proposed amendment or supplement and
      will not use any such proposed amendment or supplement to which you
      reasonably object.

            (b) Before amending or supplementing the Memorandum, the Company
      will furnish to you a copy of each such proposed amendment or supplement
      and will not use any such proposed amendment or supplement to which you
      reasonably object.

            (c) If, during such period after the date hereof and prior to the
      date on which all of the Securities shall have been sold by the Initial
      Purchasers, any event shall occur or condition exist as a result of which
      it is necessary in the reasonable opinion of either the Company or the
      Initial Purchasers to amend or supplement the Memorandum in order to make
      the statements therein, in the light of the circumstances when the
      Memorandum is delivered to a purchaser, not misleading, or to amend or
      supplement the Memorandum to comply with applicable law, the Company will
      prepare and furnish, at its own expense, to the Initial Purchasers, either
      amendments or supplements to the Memorandum so that the statements in the
      Memorandum as so amended or supplemented will not, in the light of the
      circumstances when the Memorandum is delivered to a purchaser, be
      misleading or so that the Memorandum, as amended or supplemented, will
      comply with applicable law.

            (d) The Company will promptly from time to time take such action as
      the Initial Purchasers may reasonably request to qualify the Securities
      for offer and sale under the securities or Blue Sky laws of such
      jurisdictions as you shall reasonably request.

            (e) Whether or not the transactions contemplated in this Agreement
      are consummated or this Agreement is terminated, the Company shall pay or
      cause to be paid all expenses incident to the

                                       17
<PAGE>

      performance of its obligations under this Agreement, including: (i) the
      fees, disbursements and expenses of the Company's counsel and accountants
      in connection with the issuance and sale of the Securities and all other
      fees or expenses in connection with the preparation of each Memorandum and
      all amendments and supplements thereto, including all printing costs
      associated therewith, and the delivering of copies thereof to the Initial
      Purchasers, in the quantities herein above specified, (ii) all costs and
      expenses related to the transfer and delivery of the Securities to the
      Initial Purchasers, including any transfer or other taxes payable thereon,
      (iii) the cost of printing or producing any Blue Sky or legal investment
      memorandum in connection with the offer and sale of the Securities under
      state securities laws and all expenses in connection with the
      qualification of the Securities for offer and sale under state securities
      laws as provided in Section 6(d) hereof, including filing fees and the
      reasonable fees and disbursements of counsel for the Initial Purchasers in
      connection with such qualification and in connection with the Blue Sky or
      legal investment memorandum, (iv) any fees charged by rating agencies for
      the rating of the Securities, (v) the fees and expenses, if any, incurred
      in connection with the admission of the Securities for trading in PORTAL
      or any appropriate market system, (vi) the costs and charges of the
      Trustee and any transfer agent, registrar or depositary, (vii) the cost of
      the preparation, issuance and delivery of the Securities, (viii) the costs
      and expenses of the Company relating to investor presentations on any
      "road show" undertaken in connection with the marketing of the offering of
      the Securities, including, without limitation, expenses associated with
      the production of road show slides and graphics, fees and expenses of any
      consultants engaged in connection with the road show presentations with
      the prior approval of the Company, travel and lodging expenses of the
      representatives and officers of the Company and any such consultants, (ix)
      the document production charges and expenses associated with printing this
      Agreement and (x) all other costs and expenses incident to the performance
      of the obligations of the Company hereunder for which provision is not
      otherwise made in this Section. It is understood, however, that except as
      provided in this Section, Section 8, and the last paragraph of Section 10,
      the Initial Purchasers will pay all of their costs and expenses, including
      fees and disbursements of their counsel, transfer taxes payable on resale
      of any of the Securities by them and any advertising expenses connected
      with any offers they may make.

            (f) Neither the Company nor any affiliate will sell, offer for sale
      or solicit offers to buy or otherwise negotiate in respect of any security
      (as defined in the Securities Act) which could be integrated with the sale
      of the Securities in a manner which would require the registration under
      the Securities Act of the Securities.

            (g) The Company will not solicit any offer to buy or offer to sell
      the Securities, the Subsidiary Guarantees or the Underlying Securities

                                       18
<PAGE>

      by means of any form of general solicitation or general advertising (as
      those terms are used in Regulation D under the Securities Act) or in any
      manner involving a public offering within the meaning of Section 4(2) of
      the Securities Act.

            (h) While any of the Securities, the Subsidiary Guarantees or the
      Underlying Securities remain "restricted securities" within the meaning of
      the Securities Act, the Company will make available, upon request, to any
      seller of such securities the information specified in Rule 144A(d)(4)
      under the Securities Act, unless the Company is then subject to Section 13
      or 15(d) of the Exchange Act.

            (i) The Company will use its reasonable best efforts to permit the
      Securities to be designated PORTAL securities in accordance with the rules
      and regulations adopted by the National Association of Securities Dealers,
      Inc. relating to trading in the PORTAL Market and to permit the Securities
      to be eligible for clearance and settlement through the Depository Trust
      Company.

            (j) During the period of two years after the Closing Date or any
      Option Closing Date, if later, the Company will not, and will not permit
      any of its affiliates (as defined in Rule 144 under the Securities Act) to
      resell any of the Securities, the Subsidiary Guarantees or the Underlying
      Securities which constitute "restricted securities" under Rule 144 that
      have been reacquired by any of them.

            (k) The Company will apply the proceeds from the sale of the
      Securities as set forth under "Use of Proceeds" in the Offering
      Memorandum.

            (l) The Company will not take any action prohibited by Regulation M
      under the Exchange Act in connection with the distribution of the
      Securities contemplated hereby.

            (m) The Company and the Guarantors will do and perform all things
      required or necessary to be done and performed under this Agreement by
      them prior to the Closing Date, and to satisfy all conditions precedent to
      the Initial Purchasers' obligations hereunder to purchase the Securities.

      7. Offering of Securities; Restrictions on Transfer. Each Initial
Purchaser, severally and not jointly, represents and warrants that (i) such
Initial Purchaser is a qualified institutional buyer as defined in Rule 144A
under the Securities Act (a "QIB"), (ii) such Initial Purchaser is purchasing
the Securities pursuant to a private sale exemption from registration under the
Securities Act, and (iii) such Initial Purchaser is not acquiring the Securities
(a) with a view to any distribution thereof or (b) with any present intention of
offering or selling the

                                       19
<PAGE>

Securities, in the case of either (a) or (b), in a transaction that would
violate the Securities Act or any state securities laws. Each Initial Purchaser,
severally and not jointly, agrees with the Company that (i) it will not solicit
offers for, or offer or sell, such Securities by any form of general
solicitation or general advertising (as those terms are used in Regulation D
under the Securities Act) or in any manner involving a public offering within
the meaning of Section 4(2) of the Securities Act and (ii) it will solicit
offers for such Securities only from, and will offer such Securities only to,
persons that it reasonably believes to be QIBs that in purchasing such
Securities are deemed to have represented and agreed as provided in the
Memorandum under the caption "Transfer Restrictions".

      8. Indemnity and Contribution. (a) The Company and each of the Guarantors
agree to jointly and severally indemnify and hold harmless each Initial
Purchaser, its directors, officers and employees and each person, if any, who
controls any Initial Purchaser within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, and each affiliate of any
Initial Purchaser within the meaning of Rule 405 under the Securities Act from
and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred in
connection with defending or investigating any such action or claim) caused by
any untrue statement or alleged untrue statement of a material fact contained in
the Memorandum (as amended or supplemented if the Company shall have furnished
any amendments or supplements thereto), or caused by any omission or alleged
omission to state therein a material fact necessary to make the statements
therein in the light of the circumstances under which they were made not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or
omission based upon information relating to any Initial Purchaser furnished to
the Company in writing by such Initial Purchaser through you expressly for use
therein, provided, however, that the foregoing indemnity agreement with respect
to any Preliminary Memorandum shall not inure to the benefit of the Initial
Purchaser from whom the person asserting any such losses, claims, damages or
liabilities purchased Securities, or any person controlling the Initial
Purchaser, if a copy of the Memorandum (as then amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) was not sent
or given by or on behalf of the Initial Purchaser to such person, if required by
law so to have been delivered, at or prior to the written confirmation of the
sale of the Securities to such person, and if the Memorandum (as so amended or
supplemented) would have cured the defect giving rise to such losses, claims,
damages or liabilities, unless such failure is the result of noncompliance by
the Company with Section 6(c) hereof.

      (b) Each Initial Purchaser agrees, severally and not jointly, to indemnify
and hold harmless the Company and each Guarantor and their respective directors,
officers and employees and each person, if any, who controls the Company or any
such Guarantor within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the

                                       20
<PAGE>

foregoing indemnity from the Company and the Guarantors to such Initial
Purchaser, but only with reference to information relating to such Initial
Purchaser furnished to the Company and the Guarantors in writing by such Initial
Purchaser through you expressly for use in the Memorandum or any amendments or
supplements thereto.

      (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 8(a) or 8(b), such person (the "INDEMNIFIED PARTY")
shall promptly notify the person against whom such indemnity may be sought (the
"INDEMNIFYING PARTY") in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees
and expenses shall be reimbursed as they are incurred. Such firm shall be
designated in writing by the Representative, in the case of parties indemnified
pursuant to Section 8(a), and by the Company, in the case of parties indemnified
pursuant to Section 8(b). The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against
any loss or liability by reason of such settlement or judgment. Notwithstanding
the foregoing sentence, if at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel as contemplated by the second and third sentences of this paragraph,
the indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless

                                       21
<PAGE>

such settlement includes an unconditional release of such indemnified party from
all liability on claims that are the subject matter of such proceeding.

      (d) To the extent the indemnification provided for in Section 8(a) or 8(b)
is unavailable to an indemnified party or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each indemnifying party
under such paragraph, in lieu of indemnifying such indemnified party thereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company and each
of the Guarantors on the one hand and the Initial Purchasers on the other hand
from the offering of the Securities or (ii) if the allocation provided by clause
8(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause
8(d)(i) above but also the relative fault of the Company and each of the
Guarantors on the one hand and of the Initial Purchasers on the other hand in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and each of the
Guarantors on the one hand and the Initial Purchasers on the other hand in
connection with the offering of the Securities shall be deemed to be in the same
respective proportions as the net proceeds from the offering of the Securities
(before deducting expenses) received by the Company and each of the Guarantors
and the total discounts and commissions received by the Initial Purchasers, in
each case as set forth in the Memorandum, bear to the aggregate offering price
of the Securities. The relative fault of the Company and each of the Guarantors
on the one hand and of the Initial Purchasers on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or any Guarantor
or by the Initial Purchasers and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.
The Initial Purchasers' respective obligations to contribute pursuant to this
Section 8 are several in proportion to the respective principal amount of
Securities they have purchased hereunder, and not joint.

      (e) The Company, the Guarantors and the Initial Purchasers agree that it
would not be just or equitable if contribution pursuant to this Section 8(d)
were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
Section 8(d). The amount paid or payable by an indemnified party as a result of
the losses, claims, damages and liabilities referred to in Section 8(d) shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which
the Securities resold by it in the initial

                                       22
<PAGE>

placement of such Securities were offered to investors exceeds the amount of any
damages that such Initial Purchaser has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The remedies provided
for in this Section 8 are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any indemnified party at law or in
equity.

      (f) The indemnity and contribution provisions contained in this Section 8
and the representations, warranties and other statements of the Company and the
Guarantors contained in this Agreement shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Initial Purchaser, any person
controlling any Initial Purchaser or any affiliate of any Initial Purchaser or
by or on behalf of the Company, or any Guarantor or any of their respective
officers or directors or any person controlling the Company or any Guarantor and
(iii) acceptance of and payment for any of the Securities.

      9. Termination. The Initial Purchasers may terminate this Agreement by
notice given by you to the Company, if after the execution and delivery of this
Agreement and prior to the Closing Date (i) trading generally shall have been
suspended or materially limited on, or by, as the case may be, any of the New
York Stock Exchange, the American Stock Exchange, the Nasdaq National Market,
the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the
Chicago Board of Trade, (ii) trading of any securities of the Company shall have
been suspended on any exchange or in any over-the-counter market, (iii) a
material disruption in securities settlement, payment or clearance services in
the United States shall have occurred, (iv) any moratorium on commercial banking
activities shall have been declared by Federal or New York State authorities or
(v) there shall have occurred any outbreak or escalation of hostilities, or any
change in financial markets or any calamity or crisis that, in your judgment, is
material and adverse and which, singly or together with any other event
specified in this clause (v), makes it, in your reasonable judgment,
impracticable or inadvisable to proceed with the offer, sale or delivery of the
Securities on the terms and in the manner contemplated in the Memorandum.

      10. Effectiveness; Defaulting Initial Purchasers. This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.

      If, on the Closing Date, or an Option Closing Date, as the case may be,
any one or more of the Initial Purchasers shall fail or refuse to purchase
Securities that it or they have agreed to purchase hereunder on such date, and
the aggregate principal amount of Securities which such defaulting Initial
Purchaser or Initial Purchasers agreed but failed or refused to purchase is not
more than one-tenth of the aggregate principal amount of Securities to be
purchased on such date, the other Initial Purchasers shall be obligated
severally in the proportions that the

                                       23
<PAGE>

principal amount of Firm Securities set forth opposite their respective names in
Schedule I bears to the aggregate principal amount of Firm Securities set forth
opposite the names of all such non-defaulting Initial Purchasers, or in such
other proportions as you may specify, to purchase the Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused
to purchase on such date; provided that in no event shall the principal amount
of Securities that any Initial Purchaser has agreed to purchase pursuant to this
Agreement be increased pursuant to this Section 10 by an amount in excess of
one-ninth of such principal amount of Securities without the written consent of
such Initial Purchaser. If, on the Closing Date any Initial Purchaser or Initial
Purchasers shall fail or refuse to purchase Firm Securities which it or they
have agreed to purchase hereunder on such date and the aggregate principal
amount of Securities with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Firm Securities to be purchased
on such date, and arrangements satisfactory to you and the Company for the
purchase of such Firm Securities are not made within 36 hours after such
default, this Agreement shall terminate without liability on the part of any
non-defaulting Initial Purchaser or of the Company. In any such case either you
or the Company shall have the right to postpone the Closing Date, but in no
event for longer than seven days, in order that the required changes, if any, in
the Memorandum or in any other documents or arrangements may be effected. If, on
an Option Closing Date, any Initial Purchaser or Initial Purchasers shall fail
or refuse to purchase Additional Securities and the aggregate principal amount
of Additional Securities with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Additional Securities to be
purchased on such Option Closing Date, the non-defaulting Initial Purchasers
shall have the option to (a) terminate their obligation hereunder to purchase
the Additional Securities to be sold on such Option Closing Date or (b) purchase
not less than the principal amount of Additional Securities that such
non-defaulting Initial Purchasers would have been obligated to purchase in the
absence of such default. Any action taken under this paragraph shall not relieve
any defaulting Initial Purchaser from liability in respect of any default of
such Initial Purchaser under this Agreement.

      If this Agreement shall be terminated by the Initial Purchasers, or any of
them, because of any failure or refusal on the part of the Company or any
Guarantor to comply with the terms or to fulfill any of the conditions of this
Agreement, or if for any reason the Company or any Guarantor shall be unable to
perform its obligations under this Agreement, the Company and each of the
Guarantors jointly and severally agree to reimburse the Initial Purchasers or
such Initial Purchasers as have so terminated this Agreement with respect to
themselves, severally, for all out-of-pocket expenses (including the fees and
disbursements of their counsel) reasonably incurred by such Initial Purchasers
in connection with this Agreement or the offering contemplated hereunder.

      11. Notices. All communications hereunder shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as
follows:

                                       24
<PAGE>

         If to the Initial Purchasers:

            Wachovia Capital Markets, LLC
            301 South College Street, 4th Floor
            Charlotte, North Carolina 28288-0735
            Attention: Convertible Securities Syndication
            Telecopy No.: (704) 715-6099

         If to the Company and the Guarantors:

            Genesis HealthCare Corporation
            101 East State Street
            Kennett Square, Pennsylvania 19348
            Attention: General Counsel
            Telecopy No.: (610) 444-6350

      The parties hereto may change the address for receipt of communications by
giving written notice to each other.

      12. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

      13. Applicable Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York.

      14. Headings. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed a part of
this Agreement.

                                       25
<PAGE>

                               Very truly yours,

                               THE COMPANY

                               GENESIS HEALTHCARE CORPORATION

                               By: /s/ James V. McKeon
                                   -----------------------------------------
                                    Name: James V. McKeon
                                    Title: Chief Financial Officer

                               THE GUARANTORS

                               ACADEMY NURSING HOME, INC.

                               ADS APPLE VALLEY, INC.

                               ADS CONSULTING, INC.

                               ADS DANVERS ALF, INC.

                               ADS DARTMOUTH ALF, INC.

                               ADS HINGHAM ALF, INC.

                               ADS HINGHAM NURSING FACILITY, INC.

                               ADS HOME HEALTH, INC.

                               ADS MANAGEMENT, INC.

                               ADS PALM CHELMSFORD, INC.

                               ADS RECUPERATIVE CENTER, INC.

                               ADS RESERVOIR WALTHAM, INC.

                               ADS SENIOR HOUSING, INC.

                               ADS/MULTICARE, INC.

                               ANR, INC.

                               APPLE VALLEY OPERATING CORP.

                               APPLEWOOD HEALTH RESOURCES, INC.

<PAGE>

                               ASL, INC.

                               ASSISTED LIVING ASSOCIATES OF BERKSHIRE, INC.

                               ASSISTED LIVING ASSOCIATES OF LEHIGH, INC.

                               ASSISTED LIVING ASSOCIATES OF SANATOGA, INC.

                               BERKS NURSING HOMES, INC.

                               BRIGHTWOOD PROPERTY, INC.

                               BRINTON MANOR, INC.

                               BURLINGTON WOODS CONVALESCENT CENTER,INC.

                               CAREFLEET, INC.

                               CENTURY CARE MANAGEMENT, INC.

                               CHATEAU VILLAGE HEALTH RESOURCES, INC.

                               CHELTENHAM LTC MANAGEMENT, INC.

                               CHG INVESTMENT CORP., INC.

                               CHNR-I, INC.

                               COLONIAL HALL HEALTH RESOURCES, INC.

                               CONCORD HEALTH GROUP, INC.

                               CONCORD SERVICE CORPORATION

                               CRESTVIEW CONVALESCENT HOME, INC.

                               CRESTVIEW NORTH, INC.

                               CRYSTAL CITY NURSING CENTER, INC.

                               CVNR, INC.

                               DAWN VIEW MANOR, INC.

                               DELM NURSING, INC.

<PAGE>

                               DIANE MORGAN AND ASSOCIATES, INC.

                               DOVER HEALTHCARE ASSOCIATES, INC.

                               EIDOS, INC.

                               ELDERCARE RESOURCES CORP.

                               ELMWOOD HEALTH RESOURCES, INC.

                               ENCARE OF PENNYPACK, INC.

                               ENCARE OF QUAKERTOWN, INC.

                               ENCARE OF WYNCOTE, INC.

                               ENR, INC.

                               GENESIS ELDERCARE CENTERS - BELVEDERE, INC.

                               GENESIS ELDERCARE CENTERS - CHAPEL MANOR, INC.

                               GENESIS ELDERCARE CENTERS-HARSTON, INC.

                               GENESIS ELDERCARE CENTERS - PENNSBURG, INC.

                               GENESIS ELDERCARE CORP.

                               GENESIS ELDERCARE DIAGNOSTIC SERVICES, INC.

                               GENESIS ELDERCARE HOME CARE SERVICES, INC.

                               GENESIS ELDERCARE HOSPITALITY SERVICES, INC.

                               GENESIS ELDERCARE LIVING FACILITIES, INC.

                               GENESIS ELDERCARE NATIONAL CENTERS, INC.

                               GENESIS ELDERCARE NETWORK SERVICES OF
                               MASSACHUSETTS, INC.

                               GENESIS ELDERCARE NETWORK SERVICES, INC.

<PAGE>

                               GENESIS ELDERCARE PARTNERSHIP CENTERS, INC.

                               GENESIS ELDERCARE PHYSICIAN SERVICES, INC.

                               GENESIS ELDERCARE PROPERTIES, INC.

                               GENESIS ELDERCARE REHABILITATION SERVICES, INC.

                               GENESIS ELDERCARE STAFFING SERVICES, INC.

                               GENESIS ELDERCARE TRANSPORTATION SERVICES, INC.

                               GENESIS HEALTH VENTURES OF ARLINGTON, INC.

                               GENESIS HEALTH VENTURES OF BLOOMFIELD, INC.

                               GENESIS HEALTH VENTURES OF CLARKS SUMMIT, INC.

                               GENESIS HEALTH VENTURES OF INDIANA, INC.

                               GENESIS HEALTH VENTURES OF LANHAM, INC.

                               GENESIS HEALTH VENTURES OF MASSACHUSETTS, INC.

                               GENESIS HEALTH VENTURES OF NAUGATUCK, INC.

                               GENESIS HEALTH VENTURES OF NEW GARDEN, INC.

                               GENESIS HEALTH VENTURES OF POINT PLEASANT, INC.

                               GENESIS HEALTH VENTURES OF SALISBURY, INC.

                               GENESIS HEALTH VENTURES OF WAYNE, INC.

                               GENESIS HEALTH VENTURES OF WEST VIRGINIA, INC.

<PAGE>

                               GENESIS HEALTH VENTURES OF WILKES-BARRE, INC.

                               GENESIS HEALTH VENTURES OF WINDSOR, INC.

                               GENESIS HEALTHCARE CENTERS HOLDINGS, INC.

                               GENESIS HEALTHCARE HOLDING COMPANY I, INC.

                               GENESIS HEALTHCARE HOLDING COMPANY II, INC.

                               GENESIS IMMEDIATE MED CENTER, INC.

                               GENESIS OF PALISADO AVENUE, INC.

                               GENESIS PROPERTIES OF DELAWARE CORPORATION

                               GENESIS SELECTCARE CORP.

                               GENESIS/VNA PARTNERSHIP HOLDING COMPANY, INC.

                               GERIATRIC & MEDICAL COMPANIES, INC.

                               GERIATRIC AND MEDICAL INVESTMENTS CORPORATION

                               GERIATRIC AND MEDICAL SERVICES, INC.

                               GERI-MED CORP.

                               GLENMARK ASSOCIATES - DAWN VIEW MANOR, INC.

                               GLENMARK ASSOCIATES, INC.

                               GLENMARK PROPERTIES, INC.

                               GMA-BRIGHTWOOD, INC.

                               GMA CONSTRUCTION, INC.

                               GMA-MADISON, INC.

<PAGE>

                               GMA - UNIONTOWN, INC.

                               GMA PARTNERSHIP HOLDING COMPANY, INC.

                               GMC LEASING CORPORATION

                               GMC-LTC MANAGEMENT, INC.

                               GMS INSURANCE SERVICES, INC.

                               GOVERNOR'S HOUSE NURSING HOME, INC.

                               HEALTH RESOURCES OF ACADEMY MANOR, INC.

                               HEALTH RESOURCES OF BOARDMAN, INC.

                               HEALTH RESOURCES OF BROOKLYN, INC.

                               HEALTH RESOURCES OF CEDAR GROVE, INC.

                               HEALTH RESOURCES OF CINNAMINSON, INC.

                               HEALTH RESOURCES OF COLCHESTER, INC.

                               HEALTH RESOURCES OF COLUMBUS, INC.

                               HEALTH RESOURCES OF CUMBERLAND, INC.

                               HEALTH RESOURCES OF ENGLEWOOD, INC.

                               HEALTH RESOURCES OF EWING, INC.

                               HEALTH RESOURCES OF FARMINGTON, INC.

                               HEALTH RESOURCES OF GARDNER, INC.

                               HEALTH RESOURCES OF GLASTONBURY, INC.

                               HEALTH RESOURCES OF GROTON, INC.

                               HEALTH RESOURCES OF LAKEVIEW, INC.

                               HEALTH RESOURCES OF LEMONT, INC.

                               HEALTH RESOURCES OF MARCELLA, INC.

                               HEALTH RESOURCES OF MIDDLETOWN (RI), INC.

<PAGE>

                               HEALTH RESOURCES OF MORRISTOWN, INC.

                               HEALTH RESOURCES OF NORTH ANDOVER, INC.

                               HEALTH RESOURCES OF ROCKVILLE, INC.

                               HEALTH RESOURCES OF TROY HILLS, INC.

                               HEALTH RESOURCES OF WALLINGFORD, INC.

                               HEALTH RESOURCES OF WARWICK, INC.

                               HEALTH RESOURCES OF WESTWOOD, INC.

                               HEALTHCARE RESOURCES CORP.

                               HELSTAT, INC.

                               HILLTOP HEALTH CARE CENTER, INC.

                               HMNH REALTY, INC.

                               HNCA, INC.

                               HORIZON ASSOCIATES, INC.

                               HORIZON MOBILE, INC.

                               HORIZON REHABILITATION, INC.

                               HR OF CHARLESTON, INC.

                               HRWV HUNTINGTON, INC.

                               INNOVATIVE HEALTH CARE MARKETING, INC.

                               KEYSTONE NURSING HOME, INC.

                               KNOLLWOOD MANOR, INC.

                               KNOLLWOOD NURSING HOME, INC.

                               LAKE MANOR, INC.

                               LAKEWOOD HEALTH RESOURCES, INC.

                               LAUREL HEALTH RESOURCES, INC.

                               LEHIGH NURSING HOMES, INC.

<PAGE>

                               LIFE SUPPORT MEDICAL EQUIPMENT, INC.

                               LIFE SUPPORT MEDICAL, INC.

                               LRC HOLDING COMPANY, INC.

                               LWNR, INC.

                               MABRI CONVALESCENT CENTER, INC.

                               MANOR MANAGEMENT CORP. OF GEORGIAN MANOR, INC.

                               MARLINTON ASSOCIATES, INC.

                               MARLINTON PARTNERSHIP HOLDING COMPANY, INC.

                               MCKERLEY HEALTH CARE CENTER-CONCORD, INC.

                               MCKERLEY HEALTH CARE CENTERS, INC.

                               MERIDIAN HEALTH, INC.

                               MERIDIAN HEALTHCARE INVESTMENTS, INC.

                               MERIDIAN HEALTHCARE, INC.

                               MHNR, INC.

                               MNR, INC.

                               MONTGOMERY NURSING HOMES, INC.

                               MULTICARE AMC, INC.

                               NURSING AND RETIREMENT CENTER OF THE
                                ANDOVERS, INC.

                               OAK HILL HEALTH CARE CENTER, INC.

                               PHC OPERATING CORP.

                               PHILADELPHIA AVENUE CORPORATION

                               POCAHONTAS CONTINUOUS CARE CENTER, INC.

<PAGE>

                               PRESCOTT NURSING HOME, INC.

                               PROSPECT PARK LTC MANAGEMENT, INC.

                               PROVIDENCE FUNDING CORPORATION

                               PROVIDENCE HEALTH CARE, INC.

                               REST HAVEN NURSING HOME, INC.

                               RHS MEMBERSHIP INTEREST HOLDING COMPANY

                               RIDGELAND HEALTH RESOURCES, INC.

                               RIVERSHORES HEALTH RESOURCES, INC.

                               RLNR, INC.

                               ROSE HEALTHCARE, INC.

                               ROSE VIEW MANOR, INC.

                               RSNR, INC.

                               RVNR, INC.

                               S. T. B. INVESTORS, LTD.

                               SCHUYLKILL NURSING HOMES, INC.

                               SENIOR LIVING VENTURES, INC.

                               SENIOR SOURCE, INC.

                               SNOW VALLEY HEALTH RESOURCES, INC.

                               SOLOMONT FAMILY MEDFORD VENTURE, INC.

                               STAFFORD CONVALESCENT CENTER, INC.

                               STATE STREET ASSOCIATES, INC.

                               SVNR, INC.

                               THE ADS GROUP, INC.

                               THE APPLE VALLEY PARTNERSHIP HOLDING
                                COMPANY, INC.

<PAGE>

                               THE HOUSE OF CAMPBELL, INC.

                               THE MULTICARE COMPANIES, INC.

                               THE SARAH BRAYTON PARTNERSHIP HOLDING
                                COMPANY, INC.

                               THE SOMERSET PARTNERSHIP HOLDING COMPANY, INC.

                               TMC ACQUISITION CORP.

                               TRI STATE MOBILE MEDICAL SERVICES, INC.

                               VALLEY MEDICAL SERVICES, INC.

                               VALLEY TRANSPORT AMBULANCE SERVICE, INC.

                               VERSALINK, INC.

                               VILLAS REALTY & INVESTMENTS, INC.

                               WALNUT LTC MANAGEMENT, INC.

                               WAYSIDE NURSING HOME, INC.

                               WEISENFLUH AMBULANCE SERVICE, INC.

                               WEST PHILA. LTC MANAGEMENT, INC.

                               WESTFORD NURSING AND RETIREMENT CENTER, INC.

                               WILLOW MANOR NURSING HOME, INC.

                               WYNCOTE HEALTHCARE CORP.

                               YE OLDE AMBULANCE COMPANY, INC.

                               YORK LTC MANAGEMENT, INC.

<PAGE>

                          By: /s/ James V. McKeon
                              ---------------------------------------------
                               Name: James V. McKeon
                               Title: Chief Financial Officer of each of
                                      the foregoing entities

                          ADS APPLE VALLEY LIMITED PARTNERSHIP
                               By: ADS Apple Valley, Inc., its general partner

                          ADS HINGHAM LIMITED PARTNERSHIP
                               By: ADS Hingham Nursing Facility, Inc., its
                                   general partner

                          ADS RECUPERATIVE CENTER LIMITED PARTNERSHIP
                               By: ADS Recuperative Center, Inc., its
                                   general partner

                          BREVARD MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its
                                   general partner

                          CARE HAVEN ASSOCIATES LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its
                                   general partner

                          CATONSVILLE MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc. and Meridian
                                   Health, Inc., its general partners

                          CUMBERLAND ASSOCIATES OF RHODE ISLAND, L.P.
                               By: Health Resources of Cumberland, Inc., its
                                   general partner

                          EASTON MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc. and Meridian
                                   Health, Inc., its general partners

                          EDELLA STREET ASSOCIATES
                               By: Genesis Health Ventures of Clarks Summit,
                                   Inc., its general partner

                          GENESIS ELDERCARE CENTERS I, L.P.
                               By: Genesis Eldercare Partnership Centers, Inc.,
                                   its general partner

<PAGE>

                          GENESIS ELDERCARE CENTERS II, L.P.
                               By: Genesis Eldercare Partnership Centers, Inc.,
                                   its general partner

                          GENESIS ELDERCARE CENTERS III, L.P.
                               By: Genesis Eldercare Partnership Centers, Inc.,
                                   its general partner

                          GENESIS HEALTH VENTURES OF WEST VIRGINIA, LIMITED
                            PARTNERSHIP
                               By: Genesis ElderCare Network Services, Inc. and
                                   Genesis ElderCare Rehabilitation Services,
                                   Inc., its general partners

                          GENESIS PROPERTIES LIMITED PARTNERSHIP
                               By: Genesis Health Ventures of Arlington, Inc.,
                                   its general partner

                          GENESIS PROPERTIES OF DELAWARE LTD. PARTNERSHIP, L.P.
                               By: Genesis Properties of Delaware Corporation,
                                   its general partner

                          GLENMARK PROPERTIES I, LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its general
                                   partner

                          GREENSPRING MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          GROTON ASSOCIATES OF CONNECTICUT, L.P.
                               By: Health Resources of Groton, Inc., its general
                                   partner

                          HAMMONDS LANE MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc. and Meridian
                                   Health, Inc., its general partners

                          LAKE WASHINGTON, LTD.
                               By: Lake Manor, Inc., its general partner

                          MCKERLEY HEALTH CARE CENTER-CONCORD LIMITED
                            PARTNERSHIP
                               By: McKerley Health Care Center-Concord, Inc.,
                                   its general partner

<PAGE>

                          MERIDIAN/CONSTELLATION LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          MERIDIAN EDGEWOOD LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          MERIDIAN PERRING LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          MERIDIAN VALLEY LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          MERIDIAN VALLEY VIEW LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          MIDDLETOWN (RI) ASSOCIATES OF RHODE ISLAND, L.P.
                               By: Health Resources of Middletown (RI), Inc.,
                                   its general partner

                          MILLVILLE MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Healthcare, Inc., its general
                                   partner

                          NORTH CAPE CONVALESCENT CENTER ASSOCIATES, L.P.
                               By: Geriatric and Medical Services, Inc., its
                                   general partner

                          PHILADELPHIA AVENUE ASSOCIATES
                               By: Philadelphia Avenue Corporation, its general
                                   partner

                          POINT PLEASANT HAVEN LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc. and GMA Partnership
                                   Holding Company, Inc., its general partners

                          RALEIGH MANOR LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its general
                                   partner

<PAGE>

                          RIVER STREET ASSOCIATES
                               By: Genesis Health Ventures of Wilkes-Barre,
                                   Inc., its general partner

                          ROMNEY HEALTH CARE CENTER, LTD., LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its general
                                   partner

                          SEMINOLE MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Health, Inc., its general partner

                          SISTERVILLE HAVEN LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its general
                                   partner

                          STAFFORD ASSOCIATES OF N.J., L.P.
                               By: Southern Ocean GP, LLC, its general partner

                          STATE STREET ASSOCIATES, L.P.
                               By: State Street Associates, Inc., its general
                                   partner

                          TEAYS VALLEY HAVEN LIMITED PARTNERSHIP
                               By: Glenmark Associates, Inc., its general
                                   partner

                          THE APPLE VALLEY LIMITED PARTNERSHIP
                               By: The Apple Valley Partnership Holding Company,
                                   Inc. and Apple Valley Operating Corp., its
                                   general partners

                          THE STRAUS GROUP-HOPKINS HOUSE, L.P.
                               By: Encare of Wyncote, Inc., its general partner

                          THE STRAUS GROUP-QUAKERTOWN MANOR, L.P.
                               By: Encare of Quakertown, Inc., its general
                                   partner

                          THERAPY CARE SYSTEMS, L.P.
                               By: Genesis ElderCare Rehabilitation Services,
                                   Inc., its general partner

                          VOLUSIA MERIDIAN LIMITED PARTNERSHIP
                               By: Meridian Health, Inc., its general partner

                          WALLINGFORD ASSOCIATES OF CONNECTICUT, L.P.
                               By: Health Resources of Wallingford, Inc., its
                                   general partner

<PAGE>

                        WARWICK ASSOCIATES OF RHODE ISLAND, L.P.
                             By: Health Resources of Warwick, Inc., its
                                 general partner

                        WESTFORD NURSING AND RETIREMENT CENTER, LIMITED
                          PARTNERSHIP
                             By: Westford Nursing and Retirement Center, Inc.,
                                 its general partner

                        By: /s/ James V. McKeon
                            -------------------------------------------------
                             Name: James V. McKeon
                             Title: Chief Financial Officer of the respective
                                    general partners of each of the foregoing
                                    entities

                        HOLLY MANOR ASSOCIATES OF NEW JERSEY, L.P.
                             By: Encare of Mendham, L.L.C., its general partner

                        MERCERVILLE ASSOCIATES OF NEW JERSEY, L.P.
                             By: Breyut Convalescent Center, L.L.C., its general
                                 partner

                        POMPTON ASSOCIATES, L.P.
                             By: Pompton Care, L.L.C., its general partner

                        THE STRAUS GROUP-OLD BRIDGE, L.P.
                             By: Health Resources of Emery, L.L.C., its general
                                 partner

                        THE STRAUS GROUP-RIDGEWOOD, L.P.
                             By: Health Resources of Ridgewood, L.L.C., its
                                 general partner

<PAGE>

                        By: Century Care Management, Inc., the manager of the
                          respective general partners of each of the foregoing
                          entities

                       By: /s/ James V. McKeon
                           -----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

                       SOMERSET RIDGE LIMITED PARTNERSHIP
                        By: Somerset Ridge LLC, its general partner
                           By: Somerset Ridge General Partnership, its Manager
                           By: Solomont Family Fall River Venture, Inc., its
                               general partner

                       By: /s/ James V. McKeon
                           -----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

                       ARCADIA ASSOCIATES
                        By: ADS/Multicare, Inc., its managing partner

                       By: /s/ James V. McKeon
                           -----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

                       MCKERLEY HEALTH FACILITIES
                        By: Meridian Healthcare, Inc. and Meridian Health,
                            Inc., its partners

                       By: /s/ James V. McKeon
                           -----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

<PAGE>

                       SARAH BRAYTON GENERAL PARTNERSHIP

                        By: ADS Multicare Inc. and The Sarah Brayton
                            Partnership Holding Company, Inc., its general
                            partners

                       By: /s/ James V. McKeon
                           ----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

                       SOMERSET RIDGE GENERAL PARTNERSHIP

                        By: Solomont Family Fall River Venture, Inc. and
                        The Somerset Partnership Holding Company, Inc.,
                        its general partners

                       By: /s/ James V. McKeon
                           ----------------------------------------------
                            Name: James V. McKeon
                            Title: Chief Financial Officer

                        BREYUT CONVALESCENT CENTER, L.L.C.

                        ENCARE OF MENDHAM, L.L.C.

                        HEALTH RESOURCES OF BRIDGETON, L.L.C.

                        HEALTH RESOURCES OF CINNAMINSON, L.L.C.

                        HEALTH RESOURCES OF CRANBURY, L.L.C.

                        HEALTH RESOURCES OF EATONTOWN, L.L.C.

<PAGE>

                        HEALTH RESOURCES OF EMERY, L.L.C.

                        HEALTH RESOURCES OF ENGLEWOOD, L.L.C.

                        HEALTH RESOURCES OF EWING, L.L.C.

                        HEALTH RESOURCES OF FAIR LAWN, L.L.C.

                        HEALTH RESOURCES OF JACKSON, L.L.C.

                        HEALTH RESOURCES OF RIDGEWOOD, L.L.C.

                        HEALTH RESOURCES OF SOUTH BRUNSWICK, L.L.C.

                        HEALTH RESOURCES OF WEST ORANGE, L.L.C.

                        POMPTON CARE, L.L.C.

                        ROEPHEL CONVALESCENT CENTER, L.L.C.

                        By: Century Care Management, Inc., the manager of
                            each of the foregoing entities

                        By: /s/ James V. McKeon
                            --------------------------------------------
                             Name: James V. McKeon
                             Title: Chief Financial Officer

                        GENESIS-GEORGETOWN SNF/JV, LLC

                        GLENMARK LIMITED LIABILITY COMPANY I

                        MILFORD ALF, LLC

                        RESPIRATORY HEALTH SERVICES LLC

                        RIVERVIEW RIDGE LIMITED LIABILITY COMPANY

<PAGE>

                        SOUTHERN OCEAN GP, L.L.C.

                        By: /s/ James V. McKeon
                            ----------------------------------------------
                             Name: James V. McKeon
                             Title: Chief Financial Officer

                        SOMERSET RIDGE L.L.C.

                        By: Somerset Ridge General Partnership, its Manager
                           By: Solomont Family Fall River Venture, Inc., its
                               general partner
                           By: The Somerset Partnership Holding Company, Inc.,
                               its general partner

                           By: /s/ James V. McKeon
                               -------------------------------------------
                                Name: James V. McKeon
                                Title: Chief Financial Officer

<PAGE>

Accepted as of the date hereof

WACHOVIA CAPITAL MARKETS, LLC

Acting on behalf of itself and the several Initial
    Purchasers named in Schedule I hereto.

By: WACHOVIA CAPITAL MARKETS, LLC

By: /s/ Cathleen Burke
    ---------------------------------------------
     Name: Cathleen Burke
     Title:Director

<PAGE>

                                                                   SCHEDULE 1(D)

                          NON WHOLLY OWNED SUBSIDIARIES

ADS-NDNE Danvers, LLC
ADS-NDNE Dartmouth LLC
Atrium Village Development, LLC
Berkeley Haven Limited Partnership
Canterbury of Shepherdstown Limited Partnership
Capital Region/Genesis ElderCare L. L. C.
Care Haven Associates Limited Partnership
Caton Manor Meridian Limited Partnership
Community Provider Network of Central NH, LLC
Courtyard Nursing Care Center Partnership
Dartmouth Assisted Living LLC
Dover ALF LLC f/k/a Capitol SNF, L. L. C.
Franklin Health Care Associates
Franklin Square/Meridian Healthcare Nursing Home Limited Partnership
Frederick Meridian Limited Partnership
Genesis Atrium LLC
Genesis/Harbor LLC f/k/a Harbor/Genesis J. V., LLC
Gilcrest 1
Glenmark Properties I, Limited Partnership
Hamilton Meridian Limited Partnership
Heritage at Danvers, LLC
Kittarin, LLC
Magnolia Gardens L. L. C.
Markglen, Inc.
Marlinton Associates Limited Partnership
Meridian Healthcare Growth & Income Fund Limited Partnership
Mooresville Meridian Limited Partnership
Peninsula Regional/Genesis ElderCare, LLC f/k/a Wicomico/Genesis ElderCare
LLC f/k/a Peninsula Regional/Genesis ElderCare, LLC
Plainfield Meridian Limited Partnership
PRMC/GEC at Salisbury Center, LLC f/k/a GE at Salisbury, LLC f/k/a
PRMC/GEC at Salisbury Center, LLC
Randallstown Meridian Limited Partnership
SOG Drilling Program 1983-2
Spencer Meridian Limited Partnership

<PAGE>

                                                                      SCHEDULE I

<TABLE>
<CAPTION>
                                                             $150,000,000 OF FIRM
                                                               SECURITIES TO BE
                      INITIAL PURCHASER                           PURCHASED
-----------------------------------------------------------  --------------------
<S>                                                          <C>
Wachovia Capital Markets, LLC..............................      $ 89,732,000
Jefferies & Company, Inc...................................      $ 37,308,000
Citigroup Global Markets Inc...............................      $ 22,960,000
                                                                 ------------
         Total:............................................      $150,000,000
                                                                 ============
</TABLE>

<PAGE>

                                                                     SCHEDULE II

          SUBSIDIARIES DESCRIBED IN SECTION 1(n) OF PURCHASE AGREEMENT

Genesis Eldercare Rehabilitation Services, Inc.
Geriatric & Medical Services, Inc.
The Multicare Companies, Inc.
Genesis Eldercare Network Services, Inc.
Meridian Healthcare, Inc.
Meridian Health, Inc.
McKerley Health Care Centers, Inc.
Glenmark Associates, Inc.
Genesis Health Ventures of Massachusetts, Inc.
Genesis Health Ventures of Salisbury, Inc.
ADS/Multicare, Inc.
Genesis Health Ventures of Bloomfield, Inc.

<PAGE>

                                                                    SCHEDULE III

Officers of the Company to be subject to the Lock-Up Agreements with the Initial
                                   Purchasers

George V. Hager, Jr.
James V. McKeon
Robert A. Reitz
Eileen M. Coggins
Barbara J. Hauswald
Richard Pell, Jr.
Thomas DiVittorio

<PAGE>

                                                                       EXHIBIT A

                        FORM OF OPINION OF BLANK ROME LLP

      The opinion of Blank Rome LLP, to be delivered pursuant to Section 5(c) of
the Purchase Agreement shall be to the effect that:

      A. The Company is a corporation incorporated and existing under the laws
of the Commonwealth of Pennsylvania, has the corporate power and authority to
own its property and to conduct its business as described in the Memorandum and
is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except to extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect.

      B. The Company and each of the Significant Guarantors have corporate power
and authority to enter into and perform their respective obligations under each
of the Purchase Agreement, the Registration Rights Agreement, the Indenture, the
Securities, and the Subsidiary Guarantees to which it is a party.

      C. Each of the Significant Guarantors is a corporation validly existing
under the laws of its jurisdiction of incorporation; each of the Significant
Guarantors has the corporate power and authority to own, lease and operate its
properties and to conduct its business as described in the Memorandum, is duly
qualified as a foreign entity to transact business and is in good standing in
each jurisdiction in which the conduct of business or ownership or leasing of
property requires such qualification, except where the failure so to qualify or
to be in good standing would not have a Material Adverse Effect; the issued and
outstanding capital stock or ownership interests, as the case may be, of each of
the Significant Guarantors has been duly authorized and validly issued, is fully
paid and non-assessable, and is, to our knowledge after due inquiry, owned by
the Company, directly or indirectly.

      D. The shares of Common Stock outstanding prior to the issuance of the
Securities have been duly authorized and are validly issued, fully paid and
non-assessable.

      E. The Purchase Agreement has been duly authorized, executed and delivered
by the Company and each of the Significant Guarantors.

      F. The Securities have been duly authorized by the Company and, when
executed and authenticated in accordance with the provisions of the Indenture
and delivered to and paid for by the Initial Purchasers in accordance with the
terms of the Purchase Agreement, will be valid and binding obligations of the
Company, enforceable in accordance with their terms, subject to applicable
bankruptcy, fraudulent conveyance, insolvency and similar laws affecting

                                      A-1
<PAGE>

creditors' rights generally and equitable principles of general applicability
and an implied covenant of good faith and fair dealing.

      G. The Underlying Securities initially issuable upon conversion of the
Securities have been duly and validly authorized and reserved and, when issued
upon conversion of the Securities in accordance with the terms of the
Securities, will be validly issued, fully paid and non-assessable, and the
issuance of the Underlying Securities will not be subject to any preemptive or
similar rights under the Company's articles of incorporation or Pennsylvania
law.

      H. The Significant Guarantors' Guarantees have been duly and validly
authorized by each of the Significant Guarantors and when the Significant
Guarantors' Guarantees are duly endorsed on the Securities in accordance with
the terms of the Indenture and delivered to and paid for by the Initial
Purchasers pursuant to the Purchase Agreement on the Closing Date, assuming due
authentication of the Securities by the Trustee, such Significant Guarantors'
Guarantees will constitute legally valid and binding obligations of the
respective Significant Guarantors, entitled to the benefits of the Indenture and
enforceable against the respective Guarantors in accordance with their terms,
subject to the applicable bankruptcy, fraudulent conveyance, insolvency, and
similar laws affecting creditors' rights generally and equitable principles of
general applicability and an implied covenant of good faith and fair dealing.

      I. Each of the Indenture and the Registration Rights Agreement have been
duly authorized, executed and delivered by, and is a valid and binding agreement
of, the Company and each of the Significant Guarantors, enforceable in
accordance with its terms, subject to applicable bankruptcy, fraudulent
conveyance, insolvency and similar laws affecting creditors' rights generally
and equitable principles of general applicability and an implied covenant of
good faith and fair dealing.

      J. The execution and delivery by the Company and the Significant
Guarantors, and the performance by the Company and the Significant Guarantors of
their obligations under, the Purchase Agreement, the Indenture, the Registration
Rights Agreement, the Securities and the Subsidiary Guarantees will not result
in (i) the violation in any material respect of any provision of applicable law
or the certificate of incorporation or by-laws of the Company or any such
Significant Guarantor, or any judgment, order or decree of any governmental
body, agency or court having jurisdiction over such entity known to such
counsel, or (ii) breach of, or default under, any agreement or other instrument
binding upon any such entity that is filed as an exhibit to the Company's
periodic reports under the Exchange Act, and no consent, approval, authorization
or order of, or qualification with, any governmental body or agency is required
for the performance by the Company or any Significant Guarantor of its
respective obligations under the Purchase Agreement, the Indenture, the
Registration Rights Agreement, the Securities or the Subsidiary Guarantees, as
the case may be,

                                      A-2
<PAGE>

except such as may be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Securities, Subsidiary
Guarantees and Underlying Securities and by Federal and state securities laws
with respect to the conversion of the Securities and the Company's and the
Guarantors' obligations under the Registration Rights Agreement.

      K. Such counsel does not know of any legal or governmental proceedings
pending or threatened to which the Company or any of its subsidiaries is a party
or to which any of the properties of such entity is subject other than
proceedings summarized in the Memorandum and proceedings which such counsel
believes are not required to be described in the Company's periodic reports or
likely to have a material adverse effect on the power or ability of the Company
or any Guarantor to perform its respective obligations under the Purchase
Agreement, the Indenture, the Registration Rights Agreement, the Securities or
the Subsidiary Guarantees, as the case may be, or to consummate the transactions
contemplated therein.

      L. The Company is not, and after giving effect to the offering and sale of
the Securities and the application of the proceeds thereof as described in the
Memorandum will not be, an "investment company" as such term is defined in the
Investment Company Act of 1940, as amended.

      M. The statements relating to legal matters, documents or proceedings
included in the Memorandum under the captions "Description of the Debentures"
and "Description of Capital Stock" and "Business -- Revenue Sources" and
"Business -- Government Regulation", insofar as such descriptions constitute a
summary of the legal matters, documents or proceedings referred to therein,
fairly summarize in all material respects such matters, documents or
proceedings.

      N. Although the discussion set forth in the Memorandum under the caption
"Certain United States Federal Income Tax Considerations" does not purport to
summarize all possible United States federal income tax consequences of the
acquisition, ownership, and disposition of the Securities, such discussion
constitutes, in all material respects, a fair and accurate summary of the United
States federal income tax considerations that are anticipated to be material to
persons who purchase the Securities pursuant to the Memorandum.

      O. Based upon the representations, warranties and agreements of the
Company, the Guarantors and the Initial Purchasers in the Purchase Agreement, it
is not necessary in connection with the offer, sale and delivery of the
Securities to the Initial Purchasers under the Purchase Agreement or in
connection with the initial resale of such Securities by the Initial Purchasers
in accordance with the Purchase Agreement to register the Securities, the
Subsidiary Guarantees or the Underlying Securities under the Securities Act of
1933 or to qualify the Indenture under the Trust Indenture Act of 1939, it being
understood that no opinion is expressed as to any subsequent resale of any
Security, Subsidiary Guarantee or Underlying Security.

                                      A-3
<PAGE>

      Nothing has come to the attention of such counsel that causes such counsel
to believe that (i) any document incorporated by reference in the Memorandum
(except for the financial statements and financial schedules and other financial
and statistical data included therein, as to which such counsel need not express
any belief), did not comply as to form when filed with the Commission in all
material respects with the Exchange Act and the rules and regulations of the
Commission thereunder or (ii) the Memorandum (except for the financial
statements and financial schedules and other financial and statistical data, as
to which such counsel need not express any belief) when issued contained, or as
of the date such opinion is delivered contains, any untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

      With respect to the matters referred to in the paragraph above, counsel
may state that his or her beliefs are based upon his or her participation in the
preparation of the Memorandum (and any amendments or supplements thereto) and
review and discussion of the contents thereof and review of the documents
incorporated by reference therein, but are without independent check or
verification except as specified.

                                      A-4
<PAGE>

                                                                       EXHIBIT B

                        OPINION OF DAVIS POLK & WARDWELL

      The opinion of Davis Polk & Wardwell to be delivered pursuant to Section
5(d) of the Purchase Agreement shall be to the effect that:

      A. Assuming that the Securities have been duly authorized by the Company,
the Securities, when executed and authenticated in accordance with the
provisions of the Indenture and delivered to and paid for by the Initial
Purchasers in accordance with the terms of the Purchase Agreement, will be valid
and binding obligations of the Company, enforceable in accordance with their
terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors' rights generally and equitable principles of general applicability,
and will be entitled to the benefits of the Indenture and the Registration
Rights Agreement pursuant to which such Securities are to be issued.

      B. The Subsidiary Guarantees have been duly and validly authorized by each
of the Delaware Guarantors, and assuming that the Subsidiary Guarantees have
been duly and validly authorized by each other Guarantor, the Subsidiary
Guarantees, when duly endorsed on the Securities in accordance with the terms of
the Indenture and delivered to and paid for by the Initial Purchasers pursuant
to the Purchase Agreement on the Closing Date, will constitute legally valid and
binding obligations of each respective Guarantor, entitled to the benefits of
the Indenture and enforceable against such Guarantor in accordance with their
terms, subject to the applicable bankruptcy, insolvency, and similar laws
affecting creditors' rights generally and equitable principles of general
applicability.

      C. Each of the Indenture and the Registration Rights Agreement has been
duly authorized, executed and delivered by each of the Delaware Guarantors, and
assuming that each of the Indenture and Registration Rights Agreement has been
duly authorized, executed and delivered by the Company and each other Guarantor,
each of the Indenture and the Registration Rights Agreement is a valid and
binding agreement of the Company and each Guarantor, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors' rights generally and equitable principles of general
applicability, and except as rights to indemnification and contribution under
the Registration Rights Agreement may be limited under applicable law.

      D. The statements relating to legal documents included in the Memorandum
under the captions "Description of the Debentures", "Plan of Distribution" and
"Transfer Restrictions", insofar as they summarize provisions of the Indenture,
the Securities and the Purchase Agreement, fairly summarize in all material
respects such documents.

                                      B-1
<PAGE>

      E. Nothing has come to the attention of such counsel to cause such counsel
to believe that (except for the financial statements and financial schedules and
other financial and statistical data, as to which such counsel need not express
any belief) the Memorandum when issued contained, or as of the date such opinion
is delivered contains, any untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

      With respect to the matters referred to in the paragraph above, Davis Polk
& Wardwell may state that their beliefs are based upon their participation in
the preparation of the Memorandum (and any amendments or supplements thereto)
and review and discussion of the contents thereof (including the review of, but
not participation in the preparation of, the incorporated documents), but are
without independent check or verification except as specified.

      F. Based upon the representations, warranties and agreements of the
Company, of the Guarantors and of the Initial Purchasers in the Purchase
Agreement, it is not necessary in connection with the offer, sale and delivery
of the Securities to the Initial Purchasers under the Purchase Agreement or in
connection with the initial resale of such Securities by the Initial Purchasers
in accordance with the Purchase Agreement to register the Securities, the
Subsidiary Guarantees or the Underlying Securities under the Securities Act of
1933 or to qualify the Indenture under the Trust Indenture Act of 1939, it being
understood that no opinion is expressed as to any subsequent resale of any
Security, Subsidiary Guarantee or Underlying Security.

                                      B-2
<PAGE>

                                                                       EXHIBIT C

                             FORM OF LOCK-UP LETTER

                                      February 24, 2005

Wachovia Capital Markets, LLC
c/o Wachovia Capital Markets, LLC
301 South College Street, 4th Floor
Charlotte, North Carolina 28288-0735

Dear Sirs and Mesdames:

      The undersigned understands that you propose to enter into a Purchase
Agreement (the "PURCHASE AGREEMENT") with Genesis HealthCare Corporation, a
Pennsylvania corporation (the "COMPANY"), providing for the offering (the
"OFFERING") by Wachovia Capital Markets, LLC, and such other initial purchasers
identified therein (collectively, the "INITIAL PURCHASERS") of the Company's
Convertible Senior Subordinated Debentures Due 2025 (the "SECURITIES"). The
Securities will be convertible into shares of common stock, par value $0.01, of
the Company (the "COMMON STOCK").

      To induce the Initial Purchasers to continue their efforts in connection
with the Offering, the undersigned hereby agrees that, without the prior written
consent of Wachovia Capital Markets, LLC on behalf of the Initial Purchasers, it
will not, during the period commencing on the date hereof and ending 90 days
after the date of the offering memorandum relating to the Offering (the
"MEMORANDUM"), (1) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock or (2) enter into any swap
or other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The foregoing
sentence shall not apply to (i) transactions relating to shares of Common Stock
or other securities acquired in open market transactions after the completion of
the Offering, (ii) the sale, transfer or disposition of shares of the Common
Stock in an amount not to exceed, when aggregated with all sales, transfers or
dispositions of officers of the Company who have executed similar letter
agreements, 200,000

                                      C-1
<PAGE>

shares or (iii) the exercise of any options to acquire shares of Common Stock
pursuant to the Company's employee benefit plans existing on the date hereof. In
addition, the undersigned agrees that, without the prior written consent of
Wachovia Capital Markets, LLC on behalf of the Initial Purchasers, it will not,
during the period commencing on the date hereof and ending 90 days after the
date of the Memorandum, make any demand for or exercise any right with respect
to, the registration of any shares of Common Stock or any security convertible
into or exercisable or exchangeable for Common Stock. The undersigned also
agrees and consents to the entry of stop transfer instructions with the
Company's transfer agent and registrar against the transfer of the undersigned's
shares of Common Stock except in compliance with the foregoing restrictions.

      The undersigned understands that the Company and the Initial Purchasers
are relying upon this Lock-Up Agreement in proceeding toward consummation of the
Offering. The undersigned further understands that this Lock-Up Agreement is
irrevocable and shall be binding upon the undersigned's heirs, legal
representatives, successors and assigns.

      Whether or not the Offering actually occurs depends on a number of
factors, including market conditions. Any Offering will only be made pursuant to
a Purchase Agreement, the terms of which are subject to negotiation between the
Company and the Initial Purchasers. This Lock-Up Agreement shall terminate and
be of no further force and effect if the Offering has not been consummated on or
before April 1, 2005.

                                      C-2
<PAGE>

                                 Very truly yours,

                                 ___________________________________
                                 (Name)

                                 ___________________________________
                                 (Title)

                                      C-3<PAGE>

                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and entered
into as of March 2, 2005, by and among Genesis HealthCare Corporation, a
Pennsylvania corporation (the "COMPANY"), the Guarantors (as defined below) and
Wachovia Capital Markets LLC, on behalf of the several initial purchasers named
in Schedule I (the "INITIAL PURCHASERS") to that certain Purchase Agreement,
dated as of February 24, 2005 (the "PURCHASE AGREEMENT") among the Company, the
Guarantors and the Initial Purchasers.

      In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company and the Guarantors have agreed to provide the
registration rights set forth in this Agreement. The execution of this Agreement
is a condition to the closing under the Purchase Agreement.

      The Company agrees with the Initial Purchasers (i) for their benefit as
Initial Purchasers and (ii) for the benefit of the beneficial owners (including
the Initial Purchasers) from time to time of the Debentures (as defined below)
and the beneficial owners from time to time of the Underlying Common Stock , if
any (as defined below) issued upon conversion of the Debentures (each of the
foregoing a "HOLDER" and together the "HOLDERS"), as follows:

      Section 1. Definitions. Capitalized terms used herein without definition
shall have their respective meanings set forth in the Purchase Agreement. As
used in this Agreement, the following terms shall have the following meanings:

      "ADDITIONAL AMOUNTS" has the meaning set forth in Section 2(e) hereof.

      "ADDITIONAL AMOUNTS ACCRUAL PERIOD" has the meaning set forth in Section
2(e) hereof.

      "ADDITIONAL AMOUNTS PAYMENT DATE" means each interest payment date under
the Indenture in the case of Debentures, and each May 15 and November 15 in the
case of the Underlying Common Stock, if any.

      "AFFILIATE" means with respect to any specified person, an "affiliate," as
defined in Rule 144, of such person.

      "AMENDMENT EFFECTIVENESS DEADLINE DATE" has the meaning set forth in
Section 2(d) hereof.

      "APPLICABLE CONVERSION PRICE" means, as of any date of determination,
$1,000 divided by the Conversion Rate then in effect as of the date of
determination or, if no Debentures are then outstanding, the Conversion Rate
that would be in effect were Debentures then outstanding.

      "BUSINESS DAY" has the meaning set forth in the Indenture.

<PAGE>

      "COMMON STOCK" means the shares of common stock, par value $0.01 per
share, of the Company and any other shares of capital stock as may constitute
"COMMON STOCK" for purposes of the Indenture, including the Underlying Common
Stock, if any.

      "CONVERSION RATE" has the meaning assigned to such term in the Indenture.

      "DEBENTURES" means the 2.5% Convertible Senior Subordinated Debentures due
2025 of the Company to be purchased pursuant to the Purchase Agreement.

      "EFFECTIVENESS DEADLINE DATE" has the meaning set forth in Section 2(a)
hereof.

      "EFFECTIVENESS PERIOD" means a period (subject to extension pursuant to
Section 3(i) hereof ) commencing on the first date that a Shelf Registration
Statement is declared effective under the Securities Act hereof and ending when
each of the Registrable Securities covered by the Shelf Registration Statement
ceases to be a Registrable Security.

      "EVENT" has the meaning set forth in Section 2(e) hereof.

      "EVENT DATE" has the meaning set forth in Section 2(d) hereof.

      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the SEC promulgated thereunder.

      "FILING DEADLINE DATE" has the meaning set forth in Section 2(a) hereof.

      "GUARANTORS" means all of the domestic subsidiaries of the Company that
are signatories hereto and all of the direct and indirect future domestic
subsidiaries of the Company who execute a supplemental indenture in order to
become Guarantors in accordance with the terms of the Indenture.

      "GUARANTEES" means the full and unconditional unsecured senior
subordinated guarantees by the Guarantors of the Debentures in accordance with
the terms of the Indenture.

      "INDENTURE" means the Indenture, dated as of March 2, 2005, among the
Company, the Guarantors and The Bank of New York, as trustee, pursuant to which
the Debentures are being issued.

      "INITIAL PURCHASERS" has the meaning set forth in the preamble hereto.

      "INITIAL SHELF REGISTRATION STATEMENT" has the meaning set forth in
Section 2(a) hereof.

                                       2
<PAGE>

      "ISSUE DATE" means the first date of original issuance of the Debentures.

      "MATERIAL EVENT" has the meaning set forth in Section 3(i) hereof.

      "NOTICE AND QUESTIONNAIRE" means a written notice and questionnaire
delivered to the Company substantially in the form of and containing the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to the Offering Memorandum dated February 24, 2005 relating
to the Debentures.

      "NOTICE HOLDER" means, on any date, any Holder that has delivered a Notice
and Questionnaire to the Company on or prior to such date, so long as all of
their Registrable Securities that have been registered for resale pursuant to a
Notice and Questionnaire have not been sold in accordance with a Shelf
Registration Statement.

      "PROSPECTUS" means the prospectus included in any Shelf Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 415 promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

      "PURCHASE AGREEMENT" has the meaning set forth in the preamble hereof.

      "RECORD HOLDER" means (i) with respect to any Additional Amounts Payment
Date relating to any Debentures as to which any such Additional Amounts have
accrued, the holder of record of such Debentures on the record date with respect
to the interest payment date under the Indenture on which such Additional
Amounts Payment Date shall occur and (ii) with respect to any Additional Amounts
Payment Date relating to the Underlying Common Stock as to which any such
Additional Amounts have accrued, the registered holder of such Underlying Common
Stock fifteen (15) days prior to such Additional Amounts Payment Date.

      "REGISTRABLE SECURITIES" means (a) the Debentures, including the
Guarantees, until the earliest of (i) their effective registration under the
Securities Act and resale in accordance with the Shelf Registration Statement,
(ii) expiration of the holding period that would be applicable to such
securities under Rule 144(k), or (iii) the date on which all such securities
have been converted or otherwise cease to be outstanding; and (b) the Underlying
Common Stock, if any, and any securities into or for which such Underlying
Common Stock, if any, has been converted, and any security issued with respect
thereto upon any stock dividend, split or similar event until, in the case of
any such security, the earliest of (i) its effective registration under the
Securities Act and resale in accordance with the Shelf Registration Statement,
(ii) expiration of the holding period that

                                       3
<PAGE>

would be applicable to such security under Rule 144(k), (iii) the date on which
all such securities are fully transferable by persons who are not Affiliates of
the Company without registration under the Securities Act, or (iv) the date on
which all such securities cease to be outstanding.

      "REGISTRATION EXPENSES" has the meaning set forth in Section 5 hereof.

      "REGISTRATION STATEMENT" means any registration statement of the Company
and the Guarantors that covers the Registrable Securities pursuant to the
provisions of this Agreement including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits, and all materials incorporated by reference or explicitly deemed
to be incorporated by reference in such registration statement.

      "RULE 144" means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

      "RULE 144(k)" means Rule 144(k) under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

      "RULE 144A" means Rule 144A under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

      "SEC" means the Securities and Exchange Commission.

      "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated by the SEC thereunder.

      "SHELF REGISTRATION STATEMENT" has the meaning set forth in Section 2(a)
hereof.

      "SUBSEQUENT SHELF REGISTRATION STATEMENT" has the meaning set forth in
Section 2(b) hereof.

      "SUSPENSION NOTICE" has the meaning set forth in Section 3(i) hereof.

      "SUSPENSION PERIOD" has the meaning set forth in Section 3(i) hereof.

      "TIA" means the Trust Indenture Act of 1939, as amended.

      "TRUSTEE" means The Bank of New York, the Trustee under the Indenture.

      "UNDERLYING COMMON STOCK" means the Common Stock, if any, into which the
Debentures are convertible or issued upon any such conversion.

                                       4
<PAGE>

      Section 2. Shelf Registration. (a) The Company and the Guarantors shall
prepare and file or cause to be prepared and filed with the SEC, as soon as
practicable but in any event by the date (the "FILING DEADLINE DATE") that is
one hundred twenty (120) days after the Issue Date, a Registration Statement for
an offering to be made on a delayed or continuous basis pursuant to Rule 415 of
the Securities Act (a "SHELF REGISTRATION STATEMENT") registering all of the
Registrable Securities (the "INITIAL SHELF REGISTRATION STATEMENT"). The Initial
Shelf Registration Statement shall be on Form S-3 or another appropriate form
permitting registration of such Registrable Securities. The Company and the
Guarantors shall use their commercially reasonable efforts to cause the Initial
Shelf Registration Statement to be declared effective under the Securities Act
as promptly as is practicable but in any event by the date (the "EFFECTIVENESS
DEADLINE DATE") that is one hundred eighty (180) days after the Issue Date, and
to keep the Initial Shelf Registration Statement (or any Subsequent Shelf
Registration Statement) continuously effective under the Securities Act until
the expiration of the Effectiveness Period. At the time the Initial Shelf
Registration Statement is declared effective, each Holder that became a Notice
Holder on or prior to the date that is ten (10) Business Days prior to such time
of effectiveness shall be named as a selling securityholder in the Initial Shelf
Registration Statement and the related Prospectus in such a manner as, and to
the extent necessary, to permit such Holder to deliver such Prospectus to
purchasers of Registrable Securities in accordance with applicable law.

      (b) If the Initial Shelf Registration Statement or any Subsequent Shelf
Registration Statement ceases to be effective for any reason at any time during
the Effectiveness Period, the Company and the Guarantors shall use their
commercially reasonable efforts to obtain the prompt withdrawal of any order
suspending the effectiveness thereof, and in any event shall within forty-five
(45) days of such cessation of effectiveness amend the Shelf Registration
Statement in a manner reasonably expected to obtain the withdrawal of the order
suspending the effectiveness thereof, or file an additional Shelf Registration
Statement covering all of the securities that as of the date of such filing are
Registrable Securities (a "SUBSEQUENT SHELF REGISTRATION STATEMENT"). If a
Subsequent Shelf Registration Statement is filed, the Company and the Guarantors
shall use their commercially reasonable efforts to cause the Subsequent Shelf
Registration Statement to become effective as promptly as is practicable after
such filing and to keep such Shelf Registration Statement (or subsequent Shelf
Registration Statement) continuously effective until the end of the
Effectiveness Period.

      (c) The Company and the Guarantors shall supplement and amend the Shelf
Registration Statement if required by the rules, regulations or instructions
applicable to the registration form used by the Company and the Guarantors for
such Shelf Registration Statement, if required by the Securities Act or as
reasonably requested by the Initial Purchasers or by the Trustee on behalf of
the Holders of a majority of the Registrable Securities covered by such Shelf
Registration Statement.

                                       5
<PAGE>

      (d) Each Holder of Registrable Securities agrees that if such Holder
wishes to sell Registrable Securities pursuant to a Shelf Registration Statement
and related Prospectus, it will do so only in accordance with this Section 2(d)
and Section 3(i). Each Holder of Registrable Securities wishing to sell
Registrable Securities pursuant to a Shelf Registration Statement and related
Prospectus agrees to deliver a completed and executed Notice and Questionnaire
to the Company prior to any attempted or actual distribution of Registrable
Securities under the Shelf Registration Statement; provided that Holders of
Registrable Securities shall have at least twenty (20) Business Days from the
date on which the Notice and Questionnaire is first sent to such Holders by the
Company to complete and return the Notice and Questionnaire to the Company. From
and after the date the Initial Shelf Registration Statement is declared
effective, the Company and the Guarantors shall, as promptly as practicable
after the date a Notice and Questionnaire is delivered, and in any event within
the later of (x) twenty (20) Business Days after such date or (y) the expiration
of any Suspension Period (1) in effect when the Notice and Questionnaire is
delivered or (2) put into effect within five (5) Business Days of such delivery
date, (i) if required by applicable law, file with the SEC a post-effective
amendment to the Shelf Registration Statement or, if required by applicable law,
prepare and file a supplement to the related Prospectus or a supplement or
amendment to any document incorporated therein by reference or file any other
required document so that the Holder delivering such Notice and Questionnaire is
named as a selling securityholder in the Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with
applicable law and, if the Company and the Guarantors shall file a
post-effective amendment to the Shelf Registration Statement, use their
commercially reasonable efforts to cause such post-effective amendment to be
declared effective under the Securities Act as promptly as is practicable, but
in any event by the date (the "AMENDMENT EFFECTIVENESS DEADLINE DATE") that is
sixty (60) days after the date such post-effective amendment is required by this
clause to be filed; (ii) provide such Holder a reasonable number of copies of
any documents filed pursuant to Section 2(d)(i); and (iii) notify such Holder as
promptly as practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 2(d) (i); provided that if
such Notice and Questionnaire is delivered during a Suspension Period, or a
Suspension Period is put into effect within five (5) Business Days after such
delivery date, the Company and the Guarantors shall so inform the Holder
delivering such Notice and Questionnaire and shall take the actions set forth in
clauses (i), (ii) and (iii) above upon expiration of the Suspension Period in
accordance with Section 3(i); provided further that if under applicable law, the
Company and the Guarantors have more than one option as to the type or manner of
making any such filing, the Company and the Guarantors shall make the required
filing or filings in the manner or of a type that is reasonably expected to
result in the earliest availability of the Prospectus for Registrable
Securities; provided further that the Company and the Guarantors shall not be
obligated to file more than two such post-effective

                                       6
<PAGE>

amendments during any calendar quarter or more than four such post-effective
amendments during any calendar year. Notwithstanding anything contained herein
to the contrary, the Company and the Guarantors shall be under no obligation to
name any Holder that is not a Notice Holder as a selling securityholder in any
Shelf Registration Statement or related Prospectus; provided, however, that any
Holder that becomes a Notice Holder pursuant to the provisions of this Section
2(d) (whether or not such Holder was a Notice Holder at the time the Shelf
Registration Statement was declared effective) shall be named as a selling
securityholder in the Shelf Registration Statement or related Prospectus in
accordance with the requirements of this Section 2(d).

      (e) The parties hereto agree that the Holders of Registrable Securities
will suffer damages, and that it would not be feasible to ascertain the extent
of such damages with precision, if (i) the Initial Shelf Registration Statement
has not been filed on or prior to the Filing Deadline Date, (ii) the Initial
Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline Date, (iii) the Initial
Shelf Registration Statement is filed and declared effective but shall
thereafter cease to be effective (without being succeeded immediately by an
additional registration statement filed and declared effective) or usable for
the Registrable Securities for a period of time (including any Suspension
Period) which shall exceed forty-five (45) days in the aggregate in any three
(3) month period or ninety (90) days in the aggregate in any twelve (12) month
period, (iv) the Company and the Guarantors have failed to perform their
respective obligations as set forth in Section 2(b) or Section 2(d)(i) within
the time periods required therein, (v) a post-effective amendment to a Shelf
Registration Statement filed pursuant to Section 2(d)(i) has not become
effective under the Securities Act on or prior to the Amendment Effectiveness
Deadline Date or (vi) the aggregate duration of Suspension Periods in any period
exceeds the number of days permitted in respect of such period pursuant to
Section 3(i) hereof (each of the events of a type described in any of the
foregoing clauses (i) through (vi) are individually referred to herein as an
"EVENT," and the Filing Deadline Date in the case of clause (i), the
Effectiveness Deadline Date in the case of clause (ii), the date on which the
duration of the ineffectiveness or unusability of the Initial Shelf Registration
Statement in any period exceeds the number of days permitted by clause (iii)
hereof in the case of clause (iii), the date by which the Company and the
Guarantors are required to perform their respective obligations under Section
2(b) or Section 2(d)(i) in the case of clause (iv), the Amendment Effectiveness
Deadline Date in the case of clause (v), and the date on which the aggregate
duration of Suspension Periods in any period exceeds the number of days
permitted by Section 3(i) in the case of clause (vi), being referred to herein
as an "EVENT DATE"). Events shall be deemed to continue until the following
dates with respect to the respective types of Events: the date the Initial Shelf
Registration Statement is filed in the case of an Event of the type described in
clause (i), the date the Initial Shelf Registration Statement is declared
effective under the Securities Act in the case of an Event of the type described
in clause (ii), the date the Initial Shelf Registration Statement becomes
effective or usable again in the case of an Event of the type described in
clause (iii), the date

                                       7
<PAGE>

the Company and the Guarantors perform their obligations set forth in Section
2(d)(i) in the case of clause (iv), the date the applicable post-effective
amendment to a Shelf Registration Statement becomes effective under the
Securities Act in the case of clause (v), and termination of the Suspension
Period that caused the limit on the aggregate duration of Suspension Periods to
be exceeded in the case of clause (vi).

      Accordingly, commencing on (and including) any Event Date and ending on
(but excluding) the next date on which there are no Events that have occurred
and are continuing (an "ADDITIONAL AMOUNTS ACCRUAL PERIOD"), the Company and the
Guarantors agree to pay, as additional interest and not as a penalty, an amount
(the "ADDITIONAL AMOUNTS") at the rate described below, payable periodically on
each Additional Amounts Payment Date to Record Holders of Debentures that are
Registrable Securities, to the extent of, for each such Additional Amounts
Payment Date, accrued and unpaid Additional Amounts to (but excluding) such
Additional Amounts Payment Date (or, if the Additional Amounts Accrual Period
shall have ended prior to such Additional Amounts Payment Date, the date of the
end of the Additional Amounts Accrual Period); provided that any Additional
Amounts accrued with respect to any Debenture or portion thereof called for
redemption on a redemption date or converted on a conversion date prior to the
Additional Amounts Payment Date, shall, in any such event, be paid instead to
the Holder who submitted such Debenture or portion thereof for redemption or
conversion on the applicable redemption date or conversion date, as the case may
be, on such date (or promptly following the conversion date, in the case of
conversion). The Additional Amounts shall accrue at a rate per annum equal to
one-quarter of one percent (0.25%) for the first 45 day period from an Event
Date, and thereafter at a rate equal to one-half of one percent (0.5%) of the
principal amount of such Debentures determined as of the Business Day
immediately preceding the next Additional Amounts Payment Date; provided that if
a Record Holder of a Debenture converts such Debenture on any date when the
Company and the Guarantors are required to pay Additional Amounts, such Record
Holder will not be entitled to receive such Additional Amounts but instead the
applicable Conversion Rate will be increased pursuant to the terms of the
Indenture. The rate of accrual of the Additional Amounts with respect to any
period shall not exceed the rate provided for in this paragraph notwithstanding
the occurrence of multiple concurrent Events. Following the cure of all Events
requiring the payment by the Company and the Guarantors of Additional Amounts to
the Holders of Registrable Securities pursuant to this Section, the accrual of
Additional Amounts shall cease (without in any way limiting the effect of any
subsequent Event requiring the payment of Additional Amounts by the Company and
the Guarantors).

      The Trustee shall be entitled, on behalf of Holders of Debentures and
Guarantees, to seek any available remedy for the enforcement of this Agreement,
including for the payment of any Additional Amounts. Notwithstanding the
foregoing, the parties agree that the sole damages payable for a violation of
the

                                       8
<PAGE>

terms of this Agreement with respect to which Additional Amounts is expressly
provided shall be such Additional Amounts.

      All of the respective obligations of the Company and the Guarantors set
forth in this Section 2(d) that are outstanding with respect to any Registrable
Security at the time such security ceases to be a Registrable Security shall
survive until such time as all such obligations with respect to such securities
have been satisfied in full (notwithstanding termination of this Agreement
pursuant to Section 8(k)).

      The parties hereto agree that the Additional Amounts provided for in this
Section 2(e) constitute a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of the
Shelf Registration Statement to be filed or declared effective or available for
the Registrable Securities in accordance with the provisions hereof. Any
Additional Amounts payable hereunder shall be subject to the subordination
provisions set forth in Article 4 of the Indenture.

      Section 3. Registration Procedures. In connection with the registration
obligations of the Company and the Guarantors under Section 2 hereof, the
Company and the Guarantors shall:

      (a) Prepare and file with the SEC a Shelf Registration Statement or Shelf
Registration Statements on Form S-3 or any other appropriate form under the
Securities Act available for the sale of the Registrable Securities, and use
their commercially reasonable efforts to cause each such Shelf Registration
Statement to become effective and remain effective as provided herein; provided
that before filing any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto with the SEC, the Company and the Guarantors
shall furnish to the Initial Purchasers and counsel for the Holders and for the
Initial Purchasers (or, if applicable, a single separate counsel for the
Holders) copies of all such documents proposed to be filed (other than documents
filed with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Exchange Act that are deemed incorporated by reference in such Shelf
Registration Statement or Prospectus) and use their commercially reasonable
efforts to reflect in each such document when so filed with the SEC such
comments as such counsel reasonably shall propose within three (3) Business Days
of the delivery of such copies to the Initial Purchasers and such counsel.

      (b) Subject to Section 3(i), prepare and file with the SEC such amendments
and post-effective amendments to each Shelf Registration Statement as may be
necessary to keep such Shelf Registration Statement continuously effective until
the expiration of the Effectiveness Period; cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and use their commercially reasonable efforts to comply with the
provisions of the Securities Act applicable to them with respect

                                        9
<PAGE>

to all securities covered by such Shelf Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Shelf Registration Statement as so amended
or such Prospectus as so supplemented.

      (c) As promptly as practicable give notice to the Notice Holders, the
Initial Purchasers and counsel for the Holders and for the Initial Purchasers
(or, if applicable, a single separate counsel for the Holders) (i) when any
Prospectus, Prospectus supplement, Shelf Registration Statement or
post-effective amendment to a Shelf Registration Statement has been filed with
the SEC and, with respect to a Shelf Registration Statement or any
post-effective amendment, when the same has been declared effective, (ii) of any
request, following the effectiveness of the Initial Shelf Registration Statement
under the Securities Act, by the SEC or any other federal or state governmental
authority for amendments or supplements to any Shelf Registration Statement or
related Prospectus or for additional information, (iii) of the issuance by the
SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of any Shelf Registration Statement or the
initiation or threatening of any proceedings for that purpose, (iv) of the
receipt by the Company or any of the Guarantors of any notification with respect
to the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (v) after the effective date of
any Shelf Registration Statement filed pursuant to this Agreement of the
occurrence of (but not the nature of or details concerning) a Material Event and
(vi) of the determination by the Company or any of the Guarantors that a
post-effective amendment to a Shelf Registration Statement will be filed with
the SEC, which notice may, at the discretion of the Company or such Guarantor
(or as required pursuant to Section 3(i)), state that it constitutes a
Suspension Notice, in which event the provisions of Section 3(i) shall apply.

      (d) Use their commercially reasonable efforts to prevent the issuance of,
and, if issued, to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement or the lifting of any suspension
of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case as soon as practicable, and provide prompt notice to each
Notice Holder and the Initial Purchasers of the withdrawal of any such order.

      (e) If requested by the Initial Purchasers or a majority of the Notice
Holders, as promptly as practicable incorporate in a Prospectus supplement or
post-effective amendment to a Shelf Registration Statement such information as
the Initial Purchasers, such Notice Holders or counsel for the Holders and for
the Initial Purchasers (or, if applicable, a single separate counsel for the
Holders) shall determine to be required to be included therein by applicable law
and make any required filings of such Prospectus supplement or such
post-effective amendment; provided that the Company and the Guarantors shall not
be required

                                       10
<PAGE>

to take any actions under this Section 3(e) that, in the written opinion of
counsel for the Company and the Guarantors, are not in compliance with
applicable law.

      (f) As promptly as practicable furnish to each Notice Holder, counsel for
the Holders and for the Initial Purchasers (or, if applicable, a single separate
counsel for the Holders) and the Initial Purchasers, without charge, at least
one (1) conformed copy of the Shelf Registration Statement and any amendment
thereto, including financial statements but excluding schedules, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits
(unless requested in writing to the Company and the Guarantors by such Notice
Holder, such counsel or the Initial Purchasers).

      (g) During the Effectiveness Period, deliver to each Notice Holder,
counsel for the Holders and for the Initial Purchasers (or, if applicable, a
single separate counsel for the Holders) and the Initial Purchasers, in
connection with any sale of Registrable Securities pursuant to a Shelf
Registration Statement, without charge, as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities (including each preliminary
prospectus) and any amendment or supplement thereto as such Notice Holder and
the Initial Purchasers may reasonably request; and the Company and the
Guarantors hereby consent (except during such periods that a Suspension Notice
is outstanding and has not been revoked) to the use of such Prospectus or each
amendment or supplement thereto by each Notice Holder, in connection with any
offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

      (h) Prior to any public offering of the Registrable Securities pursuant to
the Shelf Registration Statement, use their commercially reasonable efforts to
register or qualify or cooperate with the Notice Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice Holder or other Holder reasonably requests in writing (which request
may be included in the Notice and Questionnaire); prior to any public offering
of the Registrable Securities pursuant to the Shelf Registration Statement, use
their commercially reasonable efforts to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period
in connection with such offer and sale of Registrable Securities pursuant to
such registration or qualification (or exemption therefrom) and do any and all
other acts or things reasonably necessary or advisable to enable the disposition
in such jurisdictions of such Registrable Securities in the manner set forth in
the relevant Shelf Registration Statement and the related Prospectus; provided
that none of the Company or the Guarantors will be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it
would not otherwise be required to qualify but for this Agreement or (ii) take
any action that would subject it to general service of process in suits or to
taxation in any such jurisdiction where it is not then so subject.

                                       11
<PAGE>

      (i) Upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact as a result of which any Shelf Registration Statement shall contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any Prospectus shall contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, or (C) the occurrence or existence of any pending
corporate development (a "MATERIAL EVENT") that, in the reasonable discretion of
the Company and the Guarantors, makes it appropriate to suspend the availability
of the Shelf Registration Statement and the related Prospectus, (i) in the case
of clause (B) or (C) above, subject to the ability of the Company and the
Guarantors to impose a Suspension Period in accordance with this Section 3(i),
as promptly as practicable, prepare and file, if necessary pursuant to
applicable law, a post-effective amendment to such Shelf Registration Statement
or a supplement to the related Prospectus or any document incorporated therein
by reference or file any other required document that would be incorporated by
reference into such Shelf Registration Statement and Prospectus so that such
Shelf Registration Statement does not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and such Prospectus
does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading (it being
understood that the Company and the Guarantors may rely on information provided
by each Notice Holder with respect to such Notice Holder), as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder,
and, in the case of a post-effective amendment to a Shelf Registration
Statement, subject to the next sentence, use their commercially reasonable
efforts to cause it to be declared effective as promptly as is practicable, and
(ii) give notice to the Notice Holders and counsel for the Holders and for the
Initial Purchasers (or, if applicable, a single separate counsel for the
Holders) that the availability of the Shelf Registration Statement is suspended
(a "SUSPENSION NOTICE") and, upon receipt of any Suspension Notice, each Notice
Holder agrees not to sell any Registrable Securities pursuant to such Shelf
Registration Statement until such Notice Holder's receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or until it
is advised in writing by the Company and the Guarantors that the Prospectus may
be used, and has received copies of any additional or supplemental filings that
are incorporated or deemed incorporated by reference in such Prospectus. The
Company and the Guarantors will use their commercially reasonable efforts to
ensure that the use of the Prospectus may be resumed (x) in the case of clause
(A) above, as promptly as is practicable, (y) in the case of clause (B) above,
as soon as, in the reasonable judgment of the Company and the Guarantors, the
Shelf Registration Statement

                                       12
<PAGE>

does not contain any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading and the Prospectus does not contain any untrue statement
of a material fact or omits to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, and (z) in the case of clause (C) above, as soon as,
in the reasonable discretion of the Company and the Guarantors, such suspension
is no longer appropriate. The period during which the availability of the Shelf
Registration Statement and any Prospectus may be suspended (the "SUSPENSION
PERIOD") without the Company and the Guarantors incurring any obligation to pay
Additional Amounts pursuant to Section 2(d) shall not exceed forty-five (45)
days in any three (3) month period and ninety (90) days in any twelve (12) month
period; provided, that any days on which the ability of Holders to use the Shelf
Registration Statement in connection with the Registrable Securities is
prevented or restricted as a result of the filing of a post-effective amendment
to the Shelf Registration Statement shall not count towards the calculation of
the 45 and 90 day periods described above if the post-effective amendment is
made either for the sole purpose of naming additional Holders as selling
securityholders or to include information reasonably requested by a managing
underwriter if an underwritten offering of Registrable Securities is conducted
under this Agreement. The Effectiveness Period shall be extended by the number
of days from and including the date of the giving of the Suspension Notice to
and including the date on which the Notice Holder received copies of the
supplemented or amended Prospectus provided in clause (i) above, or the date on
which it is advised in writing by the Company and the Guarantors that the
Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus.

      (j) Upon written request in connection with a proposed disposition of
Registrable Securities pursuant to the Shelf Registration Statement, use their
commercially reasonable efforts to make available for inspection during normal
business hours by representatives for the Notice Holders of such Registrable
Securities, and any broker-dealers, attorneys and accountants retained by such
Notice Holders, all relevant financial and other records and pertinent corporate
documents and properties of the Company and its subsidiaries, including the
Guarantors, and cause the appropriate officers, directors and employees of the
Company and its subsidiaries, including the Guarantors, to make available for
inspection during normal business hours all relevant information reasonably
requested by such representatives for the Notice Holders, or any such
broker-dealers, attorneys or accountants in connection with such disposition, in
each case as is customary for similar "due diligence" examinations; provided,
however, that such persons shall, at the Company's request, first agree in
writing with the Company that any information that is reasonably and in good
faith designated by the Company in writing as confidential at the time of
delivery of such information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this Agreement,
unless (i) disclosure of such

                                       13
<PAGE>

information is required by court or administrative order or is necessary to
respond to inquiries of regulatory authorities, (ii) disclosure of such
information is required by law (including any disclosure requirements pursuant
to federal securities laws in connection with the filing of any Shelf
Registration Statement or the use of any Prospectus referred to in this
Agreement), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such
person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality
agreement or is not otherwise under a duty of trust to the Company, and provided
that the foregoing inspection and information gathering shall, to the greatest
extent possible, be coordinated on behalf of all the Notice Holders and the
other parties entitled thereto by the counsel referred to in Section 5, and
provided further that the foregoing inspection and information gathering shall
be exercisable no more than one time in any 60 day period. Any person legally
compelled to disclose any such confidential information made available for
inspection shall provide the Company with prompt prior written notice of such
requirement so that the Company may seek a protective order or other appropriate
remedy.

      (k) Comply with all applicable rules and regulations of the SEC and make
generally available to its securityholders earning statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder (or any similar rule promulgated under the Securities Act)
no later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) commencing on the
first day of the first fiscal quarter of the Company commencing after the
effective date of a Shelf Registration Statement, which statements shall cover
said 12-month periods.

      (l) Use their commercially reasonable efforts to cooperate with each
Notice Holder or other Holder to facilitate the timely preparation and delivery
of certificates representing Registrable Securities covered by a Shelf
Registration Statement, which certificates shall not bear any restrictive
legends, and cause such Registrable Securities to be in such denominations as
are permitted by the Indenture and registered in such names as such Notice
Holder or other Holder may request in writing at least two (2) Business Days
prior to any sale of such Registrable Securities.

      (m) Provide a CUSIP number for all Registrable Securities covered by each
Shelf Registration Statement not later than the effective date of such Shelf
Registration Statement and provide the Trustee and the transfer agent for the
Common Stock with certificates for the Registrable Securities that are in a form
eligible for deposit with The Depository Trust Company.

      (n) Cooperate and assist in any filings required to be made with the
National Association of Securities Dealers, Inc.

                                       14
<PAGE>

      (o) Upon (i) the filing of the Initial Registration Statement and (ii) the
effectiveness of the Initial Registration Statement, announce the same, in each
case by release to Reuters Economic Services and Bloomberg Business News.

      (p) Enter into such customary agreements and take all such other necessary
actions in connection therewith (including those requested by the holders of a
majority of the Registrable Securities) in order to expedite or facilitate
disposition of such Registrable Securities.

      (q) Cause the Indenture to be qualified under the TIA not later than the
effective date of any Shelf Registration Statement; and in connection therewith,
cooperate with the Trustee to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the TIA and execute, and use their commercially reasonable efforts to cause the
Trustee to execute, all documents as may be required to effect such changes, and
all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner.

      Section 4. Holder's Obligations. Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration Statement or to receive a Prospectus relating thereto, unless such
Holder has furnished the Company with a Notice and Questionnaire as required
pursuant to Section 2(d) hereof (including the information required to be
included in such Notice and Questionnaire) and the information set forth in the
next sentence. Each Notice Holder agrees promptly to furnish to the Company all
information required to be disclosed in order to make the information previously
furnished to the Company by such Notice Holder not misleading and any other
information regarding such Notice Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request.
Any sale of any Registrable Securities by any Holder shall constitute a
representation and warranty by such Holder that the information relating to such
Holder and its plan of distribution is as set forth in the Prospectus delivered
by such Holder in connection with such disposition, that such Prospectus does
not as of the time of such sale contain any untrue statement of a material fact
relating to or provided by such Holder or its plan of distribution and that such
Prospectus does not as of the time of such sale omit to state any material fact
relating to or provided by such Holder or its plan of distribution necessary in
order to make the statements in such Prospectus, in the light of the
circumstances under which they were made, not misleading.

      Section 5. Registration Expenses. The Company and the Guarantors shall
bear all fees and expenses incurred in connection with the performance by the
Company and the Guarantors of their respective obligations under Section 2 and 3
of this Agreement whether or not any of the Shelf Registration Statements are
declared effective. Such fees and expenses ("REGISTRATION EXPENSES") shall
include, without limitation, (i) all registration and filing fees (including,
without

                                       15
<PAGE>

limitation, fees and expenses (x) with respect to filings required to be made
with the National Association of Securities Dealers, Inc. and (y) of compliance
with federal and state securities or Blue Sky laws (including, without
limitation, reasonable fees and disbursements of one counsel for the Holders in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as the Notice Holders of a majority of the
Registrable Securities being sold pursuant to a Shelf Registration Statement may
designate), (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities in a form eligible for deposit
with The Depository Trust Company), (iii) duplication and mailing expenses
relating to copies of any Shelf Registration Statement or Prospectus delivered
to any Holders hereunder, (iv) fees and disbursements of counsel for the Company
and the Guarantors and the fees and disbursements of one counsel for the Holders
in connection with the Shelf Registration Statement, (v) fees and disbursements
of the Trustee and its counsel and of the registrar and transfer agent for the
Common Stock and (vi) Securities Act liability insurance, if any, obtained by
the Company and the Guarantors in their sole discretion. In addition, the
Company and the Guarantors shall pay the internal expenses of the Company and
the Guarantors (including, without limitation, all salaries and expenses of
officers and employees performing legal or accounting duties), the expense of
any annual audit, the fees and expenses incurred in connection with the listing
by the Company of the Registrable Securities on any securities exchange on which
similar securities of the Company are then listed and the fees and expenses of
any person, including special experts, retained by the Company or any of the
Guarantors.

      Section 6. Indemnification; Contribution.

      (a) The Company and each of the Guarantors agree, jointly and severally,
to indemnify, defend and hold harmless each Holder and each person who controls
any Holder within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act (each, a "HOLDER INDEMNIFIED PARTY"), from and against any
loss, damage, expense, liability or claim (including the reasonable cost of
investigation) which such Holder Indemnified Party may incur under the
Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability or claim is caused by any untrue statement or alleged untrue
statement of a material fact contained in any Shelf Registration Statement or
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arises out of or is based upon any omission or alleged omission
to state a material fact required to be stated in any Shelf Registration
Statement or in any amendment or supplement thereto or necessary to make the
statements therein not misleading, or is caused by any omission or alleged
omission to state a material fact necessary in order to make the statements made
in any Prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, in the light of the circumstances under which they were
made, not misleading, except insofar as any such loss, damage, expense,
liability or claim arises out of or is based upon any untrue statement or
omission or alleged untrue statement or omission of a material fact contained
in, or omitted from, and in conformity with

                                       16
<PAGE>

information furnished in writing by or on behalf of any Holder to the Company
expressly for use therein.

      (b) Each Holder, severally and not jointly, agrees to indemnify, defend
and hold harmless the Company and each Guarantor, and each of their respective
directors and officers and any person who controls the Company or any such
Guarantors within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act (each, a "COMPANY INDEMNIFIED PARTY") from and against any
loss, damage, expense, liability or claim (including the reasonable cost of
investigation) which such Company Indemnified Party may incur under the
Securities Act, the Exchange Act or otherwise, insofar as such loss, damage,
expense, liability or claim is caused by any untrue statement or alleged untrue
statement of a material fact contained in information furnished in writing by or
on behalf of such Holder to the Company expressly for use in any Shelf
Registration Statement or Prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or is caused by any omission or alleged
omission to state a material fact required to be stated in any Shelf
Registration Statement or in any amendment or supplement thereto or necessary to
make the statements therein not misleading, or arises out of or is based upon
any omission or alleged omission to state a material fact necessary in order to
make the statements in any Prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, in the light of the circumstances under which
they were made, not misleading, in connection with such information. In no event
shall the liability of any selling Holder of Registrable Securities hereunder be
greater in amount than the dollar amount of the proceeds received by such Holder
upon the sale of the Registrable Securities pursuant to the Shelf Registration
Statement giving rise to such indemnification obligation.

      (c) If any action, suit or proceeding (each, a "PROCEEDING") is brought
against any person in respect of which indemnity may be sought pursuant to
either subsection (a) or (b) of this Section 6, such person (the "INDEMNIFIED
PARTY") shall promptly notify the person against whom such indemnity may be
sought (the "INDEMNIFYING PARTY") in writing of the institution of such
Proceeding and the Indemnifying Party shall assume the defense of such
Proceeding; provided, however, that the omission to notify such Indemnifying
Party shall not relieve such Indemnifying Party from any liability which it may
have to such Indemnified Party or otherwise, except to the extent that it has
been materially prejudiced by such failure. Such Indemnified Party shall have
the right to employ its own counsel in any such case, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party unless the
employment of such counsel shall have been authorized in writing by such
Indemnifying Party in connection with the defense of such Proceeding or such
Indemnifying Party shall not have employed counsel to have charge of the defense
of such Proceeding within 30 days of the receipt of notice thereof or such
Indemnified Party shall have reasonably concluded upon the written advice of
counsel that there may be one or more defenses available to it that are
different from, additional to or in conflict with those available to such
Indemnifying Party (in which case such Indemnifying

                                       17
<PAGE>

Party shall not have the right to direct that portion of the defense of such
Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may
employ counsel and participate in the defense thereof but the fees and expenses
of such counsel shall be at the expense of such Indemnifying Party), in any of
which events such reasonable fees and expenses shall be borne by such
Indemnifying Party and paid as incurred (it being understood, however, that such
Indemnifying Party shall not be liable for the expenses of more than one
separate counsel in any one Proceeding or series of related Proceedings together
with reasonably necessary local counsel representing the Indemnified Parties who
are parties to such action). An Indemnifying Party shall not be liable for any
settlement of such Proceeding effected without the written consent of such
Indemnifying Party, but if settled with the written consent of such Indemnifying
Party, such Indemnifying Party agrees to indemnify and hold harmless an
Indemnified Party from and against any loss or liability by reason of such
settlement. Notwithstanding the foregoing sentence, if at any time an
Indemnified Party shall have requested an Indemnifying Party to reimburse such
Indemnified Party for fees and expenses of counsel as contemplated by the second
sentence of this paragraph, then such Indemnifying Party agrees that it shall be
liable for any settlement of any Proceeding effected without its written consent
if (i) such settlement is entered into more than 60 Business Days after receipt
by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying
Party shall not have reimbursed such Indemnified Party in accordance with such
request prior to the date of such settlement and (iii) such Indemnified Party
shall have given such Indemnifying Party at least 30 days' prior notice of its
intention to settle. No Indemnifying Party shall, without the prior written
consent of any Indemnified Party, effect any settlement of any pending or
threatened Proceeding in respect of which such Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter
of such Proceeding and does not include an admission of fault, culpability or a
failure to act, by or on behalf of such Indemnified Party.

      (d) If the indemnification provided for in this Section 6 is unavailable
to an Indemnified Party under subsections (a) and (b) of this Section 6 in
respect of any losses, damages, expenses, liabilities or claims referred to
therein, then each applicable Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, damages, expenses, liabilities or
claims (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Guarantors on the one hand and the Holders on
the other hand from the offering of the Registrable Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
the Guarantors on the one hand and of the Holders on the other in connection
with the statements or omissions which resulted in such losses, damages,
expenses, liabilities or claims, as well as any other relevant equitable
considerations. The relative benefit received by the

                                       18
<PAGE>

Company and the Guarantors shall be deemed to be equal to the total net proceeds
from the initial placement pursuant to the Purchase Agreement (before deducting
expenses) of the Registrable Securities to which such losses, claims, damages or
liabilities relate. The relative benefit received by any Holder shall be deemed
to be equal to the value of receiving registration rights under this Agreement
for the Registrable Securities. The relative fault of the Company and the
Guarantors on the one hand and of the Holders on the other shall be determined
by reference to, among other things, whether the untrue statement or alleged
untrue statement of a material fact or omission or alleged omission relates to
information supplied by the Company or any Guarantor or by the Holders and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by a
party as a result of the losses, damages, expenses, liabilities and claims
referred to above shall be deemed to include any reasonable legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any Proceeding.

      (e) The Company, the Guarantors and the Holders agree that it would not be
just and equitable if contribution pursuant to this Section 6 were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in subsection (d) above.
Notwithstanding the provisions of this Section 6, no Holder shall be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities sold by it were offered to the public exceeds the
amount of any damages which it has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Holders' respective
obligations to contribute pursuant to this Section 6 are several in proportion
to the respective amount of Registrable Securities they have sold pursuant to a
Shelf Registration Statement, and not joint. The remedies provided for in this
Section 6 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

      (f) The indemnity and contribution provisions contained in this Section 6
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
any Holder or any person controlling any Holder, the Company, any Guarantor, the
officers or directors of the Company or any Guarantor or any person controlling
the Company or any Guarantor and (iii) the sale of any Registrable Security by
any Holder.

      Section 7. Information Requirements. (a) The Company covenants that, if at
any time before the end of the Effectiveness Period it is not subject to the
reporting requirements of the Exchange Act, it will cooperate with any Holder of
Registrable Securities and take such further action as any Holder of Registrable

                                       19
<PAGE>

Securities may reasonably request in writing (including, without limitation,
making such representations as any such Holder may reasonably request), all to
the extent required from time to time to enable such Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144, Rule 144A, Regulation S and Regulation D
under the Securities Act and customarily taken in connection with sales pursuant
to such exemptions. Upon the written request of any Holder of Registrable
Securities, the Company shall deliver to such Holder a written statement as to
whether it has complied with such filing requirements, unless such a statement
has been included in the Company's most recent report filed with the SEC
pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the
foregoing, nothing in this Section 7 shall be deemed to require the Company to
register any of its securities (other than the Common Stock) under any section
of the Exchange Act.

      (b) The Company and the Guarantors shall file the reports required to be
filed by them under the Exchange Act and shall comply with all other
requirements set forth in the instructions to Form S-3, as the case may be, in
order to allow the Company and the Guarantors to be eligible to file
registration statements on Form S-3.

      Section 8. Miscellaneous.

      (a) No Conflicting Agreements. None of the Company or any of the
Guarantors is, as of the date hereof, a party to, nor shall any of them, on or
after the date of this Agreement, enter into, any agreement with respect to
their securities that conflicts with the rights granted to the Holders of
Registrable Securities in this Agreement. The Company and the Guarantors
represent and warrant that the rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with the rights granted to the
holders of the securities of the Company or any of the Guarantors under any
other agreements.

      (b) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company and the Guarantors have obtained the written consent
of Holders of a majority of the then outstanding Underlying Common Stock, if any
constituting Registrable Securities (with Holders of Debentures deemed to be the
Holders, for purposes of this Section, of the number of outstanding shares of
Underlying Common Stock, if any, into which such Debentures are or would be
convertible as of the date on which such consent is requested). Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a Shelf
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders
pursuant

                                       20
<PAGE>

to such Shelf Registration Statement; provided that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected pursuant to this
Section 8(b), whether or not any notice, writing or marking indicating such
amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

      (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by
courier guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the
parties as follows:

      (x) if to a Holder of Registrable Securities, at the most current address
given by such Holder to the Company in a Notice and Questionnaire or any
amendment thereto;

      (y) if to the Company and the Guarantors, to:

          Genesis HealthCare Corporation
          101 East State Street
          Kennett Square, Pennsylvania 19348
          Attention: General Counsel
          Telecopy No.: (610) 444-6350

      (z) if to the Initial Purchasers, to:

          Wachovia Capital Markets, LLC
          301 South College Street, 4th Floor
          Charlotte, North Carolina 28288-0735
          Attention: Convertible Securities Syndication
          Telecopy No.: (704) 715-6099

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

      (d) Approval of Holders. Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or the Guarantors or any of their
affiliates (as such term is defined in Rule 405 under the Securities Act) (other
than the Initial Purchasers or subsequent Holders of Registrable Securities if
such

                                       21
<PAGE>

subsequent Holders are deemed to be such affiliates solely by reason of their
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

      (e) Successors and Assigns. Any person who purchases any Registrable
Securities from the Initial Purchasers or any Holder shall be deemed, for
purposes of this Agreement, to be an assignee of the Initial Purchasers or such
Holder, as the case may be. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties and shall inure
to the benefit of and be binding upon each Holder of any Registrable Securities.

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

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

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

      (i) Severability. If any term, provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby, and the parties hereto shall use its commercially
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction, it being intended that all of the rights and privileges
of the parties shall be enforceable to the fullest extent permitted by law.

      (j) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and is intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and the registration rights granted by the
Company and the Guarantors with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Company and the
Guarantors with respect to the Registrable Securities. This Agreement supersedes
all prior agreements and undertakings among the parties with respect to such
registration rights. No party hereto shall have any rights, duties or
obligations other than those specifically set forth in this Agreement.

                                       22
<PAGE>

      (k) Termination. This Agreement and the obligations of the parties
hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Section 4, 5 or 6 hereof and the
obligations to make payments of and provide for Additional Amounts under Section
2(d) hereof to the extent such damages accrue prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

                                       23
<PAGE>

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

                           THE COMPANY

                           GENESIS HEALTHCARE CORPORATION

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           THE GUARANTORS

                           ACADEMY NURSING HOME, INC.

                           ADS APPLE VALLEY, INC.

                           ADS CONSULTING, INC.

                           ADS DANVERS ALF, INC.

                           ADS DARTMOUTH ALF, INC.

                           ADS HINGHAM ALF, INC.

                           ADS HINGHAM NURSING FACILITY, INC.

                           ADS HOME HEALTH, INC.

                           ADS MANAGEMENT, INC.

                           ADS PALM CHELMSFORD, INC.

                           ADS RECUPERATIVE CENTER, INC.

                           ADS RESERVOIR WALTHAM, INC.

                           ADS SENIOR HOUSING, INC.

                           ADS/MULTICARE, INC.

                           ANR, INC.

                           APPLE VALLEY OPERATING CORP.

                           APPLEWOOD HEALTH RESOURCES, INC.

<PAGE>

                           ASL, INC.

                           ASSISTED LIVING ASSOCIATES OF BERKSHIRE, INC.

                           ASSISTED LIVING ASSOCIATES OF LEHIGH, INC.

                           ASSISTED LIVING ASSOCIATES OF SANATOGA, INC.

                           BERKS NURSING HOMES, INC.

                           BRIGHTWOOD PROPERTY, INC.

                           BRINTON MANOR, INC.

                           BURLINGTON WOODS CONVALESCENT CENTER,
                           INC.

                           CAREFLEET, INC.

                           CENTURY CARE MANAGEMENT, INC.

                           CHATEAU VILLAGE HEALTH RESOURCES, INC.

                           CHELTENHAM LTC MANAGEMENT, INC.

                           CHG INVESTMENT CORP., INC.

                           CHNR-I, INC.

                           COLONIAL HALL HEALTH RESOURCES, INC.

                           CONCORD HEALTH GROUP, INC.

                           CONCORD SERVICE CORPORATION

                           CRESTVIEW CONVALESCENT HOME, INC.

                           CRESTVIEW NORTH, INC.

                           CRYSTAL CITY NURSING CENTER, INC.

                           CVNR, INC.

                           DAWN VIEW MANOR, INC.

                           DELM NURSING, INC.

<PAGE>

                           DIANE MORGAN AND ASSOCIATES, INC.

                           DOVER HEALTHCARE ASSOCIATES, INC.

                           EIDOS, INC.

                           ELDERCARE RESOURCES CORP.

                           ELMWOOD HEALTH RESOURCES, INC.

                           ENCARE OF PENNYPACK, INC.

                           ENCARE OF QUAKERTOWN, INC.

                           ENCARE OF WYNCOTE, INC.

                           ENR, INC.

                           GENESIS ELDERCARE CENTERS - BELVEDERE, INC.

                           GENESIS ELDERCARE CENTERS - CHAPEL MANOR, INC.

                           GENESIS ELDERCARE CENTERS-HARSTON, INC.

                           GENESIS ELDERCARE CENTERS - PENNSBURG, INC.

                           GENESIS ELDERCARE CORP.

                           GENESIS ELDERCARE DIAGNOSTIC SERVICES, INC.

                           GENESIS ELDERCARE HOME CARE SERVICES, INC.

                           GENESIS ELDERCARE HOSPITALITY SERVICES, INC.

                           GENESIS ELDERCARE LIVING FACILITIES, INC.

                           GENESIS ELDERCARE NATIONAL CENTERS, INC.

                           GENESIS ELDERCARE NETWORK SERVICES OF MASSACHUSETTS,
                           INC.

                           GENESIS ELDERCARE NETWORK SERVICES, INC.

<PAGE>

                           GENESIS ELDERCARE PARTNERSHIP CENTERS, INC.

                           GENESIS ELDERCARE PHYSICIAN SERVICES, INC.

                           GENESIS ELDERCARE PROPERTIES, INC.

                           GENESIS ELDERCARE REHABILITATION SERVICES, INC.

                           GENESIS ELDERCARE STAFFING SERVICES, INC.

                           GENESIS ELDERCARE TRANSPORTATION SERVICES, INC.

                           GENESIS HEALTH VENTURES OF ARLINGTON, INC.

                           GENESIS HEALTH VENTURES OF BLOOMFIELD, INC.

                           GENESIS HEALTH VENTURES OF CLARKS SUMMIT, INC.

                           GENESIS HEALTH VENTURES OF INDIANA, INC.

                           GENESIS HEALTH VENTURES OF LANHAM, INC.

                           GENESIS HEALTH VENTURES OF MASSACHUSETTS, INC.

                           GENESIS HEALTH VENTURES OF NAUGATUCK, INC.

                           GENESIS HEALTH VENTURES OF NEW GARDEN, INC.

                           GENESIS HEALTH VENTURES OF POINT PLEASANT, INC.

                           GENESIS HEALTH VENTURES OF SALISBURY, INC.

                           GENESIS HEALTH VENTURES OF WAYNE, INC.

                           GENESIS HEALTH VENTURES OF WEST VIRGINIA, INC.

<PAGE>

                           GENESIS HEALTH VENTURES OF WILKES-BARRE, INC.

                           GENESIS HEALTH VENTURES OF WINDSOR, INC.

                           GENESIS HEALTHCARE CENTERS HOLDINGS, INC.

                           GENESIS HEALTHCARE HOLDING COMPANY I, INC.

                           GENESIS HEALTHCARE HOLDING COMPANY II, INC.

                           GENESIS IMMEDIATE MED CENTER, INC.

                           GENESIS OF PALISADO AVENUE, INC.

                           GENESIS PROPERTIES OF DELAWARE CORPORATION

                           GENESIS SELECTCARE CORP.

                           GENESIS/VNA PARTNERSHIP HOLDING COMPANY, INC.

                           GERIATRIC & MEDICAL COMPANIES, INC.

                           GERIATRIC AND MEDICAL INVESTMENTS CORPORATION

                           GERIATRIC AND MEDICAL SERVICES, INC.

                           GERI-MED CORP.

                           GLENMARK ASSOCIATES - DAWN VIEW MANOR, INC.

                           GLENMARK ASSOCIATES, INC.

                           GLENMARK PROPERTIES, INC.

                           GMA-BRIGHTWOOD, INC.

                           GMA CONSTRUCTION, INC.

                           GMA-MADISON, INC.

<PAGE>

                           GMA - UNIONTOWN, INC.

                           GMA PARTNERSHIP HOLDING COMPANY, INC.

                           GMC LEASING CORPORATION

                           GMC-LTC MANAGEMENT, INC.

                           GMS INSURANCE SERVICES, INC.

                           GOVERNOR'S HOUSE NURSING HOME, INC.

                           HEALTH RESOURCES OF ACADEMY MANOR, INC.

                           HEALTH RESOURCES OF BOARDMAN, INC.

                           HEALTH RESOURCES OF BROOKLYN, INC.

                           HEALTH RESOURCES OF CEDAR GROVE, INC.

                           HEALTH RESOURCES OF CINNAMINSON, INC.

                           HEALTH RESOURCES OF COLCHESTER, INC.

                           HEALTH RESOURCES OF COLUMBUS, INC.

                           HEALTH RESOURCES OF CUMBERLAND, INC.

                           HEALTH RESOURCES OF ENGLEWOOD, INC.

                           HEALTH RESOURCES OF EWING, INC.

                           HEALTH RESOURCES OF FARMINGTON, INC.

                           HEALTH RESOURCES OF GARDNER, INC.

                           HEALTH RESOURCES OF GLASTONBURY, INC.

                           HEALTH RESOURCES OF GROTON, INC.

                           HEALTH RESOURCES OF LAKEVIEW, INC.

                           HEALTH RESOURCES OF LEMONT, INC.

                           HEALTH RESOURCES OF MARCELLA, INC.

                           HEALTH RESOURCES OF MIDDLETOWN (RI), INC.

<PAGE>

                           HEALTH RESOURCES OF MORRISTOWN, INC.

                           HEALTH RESOURCES OF NORTH ANDOVER, INC.

                           HEALTH RESOURCES OF ROCKVILLE, INC.

                           HEALTH RESOURCES OF TROY HILLS, INC.

                           HEALTH RESOURCES OF WALLINGFORD, INC.

                           HEALTH RESOURCES OF WARWICK, INC.

                           HEALTH RESOURCES OF WESTWOOD, INC.

                           HEALTHCARE RESOURCES CORP.

                           HELSTAT, INC.

                           HILLTOP HEALTH CARE CENTER, INC.

                           HMNH REALTY, INC.

                           HNCA, INC.

                           HORIZON ASSOCIATES, INC.

                           HORIZON MOBILE, INC.

                           HORIZON REHABILITATION, INC.

                           HR OF CHARLESTON, INC.

                           HRWV HUNTINGTON, INC.

                           INNOVATIVE HEALTH CARE MARKETING, INC.

                           KEYSTONE NURSING HOME, INC.

                           KNOLLWOOD MANOR, INC.

                           KNOLLWOOD NURSING HOME, INC.

                           LAKE MANOR, INC.

                           LAKEWOOD HEALTH RESOURCES, INC.

                           LAUREL HEALTH RESOURCES, INC.

                           LEHIGH NURSING HOMES, INC.

<PAGE>

                           LIFE SUPPORT MEDICAL EQUIPMENT, INC.

                           LIFE SUPPORT MEDICAL, INC.

                           LRC HOLDING COMPANY, INC.

                           LWNR, INC.

                           MABRI CONVALESCENT CENTER, INC.

                           MANOR MANAGEMENT CORP. OF GEORGIAN MANOR, INC.

                           MARLINTON ASSOCIATES, INC.

                           MARLINTON PARTNERSHIP HOLDING COMPANY, INC.

                           MCKERLEY HEALTH CARE CENTER-CONCORD, INC.

                           MCKERLEY HEALTH CARE CENTERS, INC.

                           MERIDIAN HEALTH, INC.

                           MERIDIAN HEALTHCARE INVESTMENTS, INC.

                           MERIDIAN HEALTHCARE, INC.

                           MHNR, INC.

                           MNR, INC.

                           MONTGOMERY NURSING HOMES, INC.

                           MULTICARE AMC, INC.

                           NURSING AND RETIREMENT CENTER OF THE ANDOVERS, INC.

                           OAK HILL HEALTH CARE CENTER, INC.

                           PHC OPERATING CORP.

                           PHILADELPHIA AVENUE CORPORATION

                           POCAHONTAS CONTINUOUS CARE CENTER, INC.

<PAGE>

                           PRESCOTT NURSING HOME, INC.

                           PROSPECT PARK LTC MANAGEMENT, INC.

                           PROVIDENCE FUNDING CORPORATION

                           PROVIDENCE HEALTH CARE, INC.

                           REST HAVEN NURSING HOME, INC.

                           RHS MEMBERSHIP INTEREST HOLDING COMPANY

                           RIDGELAND HEALTH RESOURCES, INC.

                           RIVERSHORES HEALTH RESOURCES, INC.

                           RLNR, INC.

                           ROSE HEALTHCARE, INC.

                           ROSE VIEW MANOR, INC.

                           RSNR, INC.

                           RVNR, INC.

                           S. T. B. INVESTORS, LTD.

                           SCHUYLKILL NURSING HOMES, INC.

                           SENIOR LIVING VENTURES, INC.

                           SENIOR SOURCE, INC.

                           SNOW VALLEY HEALTH RESOURCES, INC.

                           SOLOMONT FAMILY MEDFORD VENTURE, INC.

                           STAFFORD CONVALESCENT CENTER, INC.

                           STATE STREET ASSOCIATES, INC.

                           SVNR, INC.

                           THE ADS GROUP, INC.

                           THE APPLE VALLEY PARTNERSHIP HOLDING COMPANY, INC.

<PAGE>

                           THE HOUSE OF CAMPBELL, INC.

                           THE MULTICARE COMPANIES, INC.

                           THE SARAH BRAYTON PARTNERSHIP HOLDING COMPANY, INC.

                           THE SOMERSET PARTNERSHIP HOLDING COMPANY, INC.

                           TMC ACQUISITION CORP.

                           TRI STATE MOBILE MEDICAL SERVICES, INC.

                           VALLEY MEDICAL SERVICES, INC.

                           VALLEY TRANSPORT AMBULANCE SERVICE, INC.

                           VERSALINK, INC.

                           VILLAS REALTY & INVESTMENTS, INC.

                           WALNUT LTC MANAGEMENT, INC.

                           WAYSIDE NURSING HOME, INC.

                           WEISENFLUH AMBULANCE SERVICE, INC.

                           WEST PHILA. LTC MANAGEMENT, INC.

                           WESTFORD NURSING AND RETIREMENT CENTER, INC.

                           WILLOW MANOR NURSING HOME, INC.

                           WYNCOTE HEALTHCARE CORP.

                           YE OLDE AMBULANCE COMPANY, INC.

                           YORK LTC MANAGEMENT, INC.

<PAGE>

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer of each of
                                      the foregoing entities

                           ADS APPLE VALLEY LIMITED PARTNERSHIP
                                By: ADS Apple Valley, Inc., its general partner

                           ADS HINGHAM LIMITED PARTNERSHIP
                                By: ADS Hingham Nursing Facility, Inc., its
                                    general partner

                           ADS RECUPERATIVE CENTER LIMITED PARTNERSHIP
                                By: ADS Recuperative Center, Inc., its general
                                    partner

                           BREVARD MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           CARE HAVEN ASSOCIATES LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

                           CATONSVILLE MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc. and Meridian
                                    Health, Inc., its general partners

                           CUMBERLAND ASSOCIATES OF RHODE ISLAND, L.P.
                                By: Health Resources of Cumberland, Inc., its
                                    general partner

                           EASTON MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc. and Meridian
                                    Health, Inc., its general partners

                           EDELLA STREET ASSOCIATES
                                By: Genesis Health Ventures of Clarks Summit,
                                    Inc., its general partner

                           GENESIS ELDERCARE CENTERS I, L.P.
                                By: Genesis Eldercare Partnership Centers, Inc.,
                                    its general partner

<PAGE>

                           GENESIS ELDERCARE CENTERS II, L.P.
                                By: Genesis Eldercare Partnership Centers,
                                    Inc., its general partner

                           GENESIS ELDERCARE CENTERS III, L.P.
                                By: Genesis Eldercare Partnership Centers,
                                    Inc., its general partner

                           GENESIS HEALTH VENTURES OF WEST VIRGINIA, LIMITED
                                PARTNERSHIP
                                By: Genesis ElderCare Network Services, Inc.
                                    and Genesis ElderCare Rehabilitation
                                    Services, Inc., its general partners

                           GENESIS PROPERTIES LIMITED PARTNERSHIP
                                By: Genesis Health Ventures of Arlington, Inc.,
                                    its general partner

                           GENESIS PROPERTIES OF DELAWARE LTD. PARTNERSHIP, L.P.
                                By: Genesis Properties of Delaware Corporation,
                                    its general partner

                           GLENMARK PROPERTIES I, LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

                           GREENSPRING MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           GROTON ASSOCIATES OF CONNECTICUT, L.P.
                                By: Health Resources of Groton, Inc., its
                                    general partner

                           HAMMONDS LANE MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc. and Meridian
                                    Health, Inc., its general partners

                           LAKE WASHINGTON, LTD.
                                By: Lake Manor, Inc., its general partner

                           MCKERLEY HEALTH CARE CENTER-CONCORD LIMITED
                                PARTNERSHIP
                                By: McKerley Health Care Center-Concord, Inc.,
                                    its general partner

<PAGE>

                           MERIDIAN/CONSTELLATION LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           MERIDIAN EDGEWOOD LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           MERIDIAN PERRING LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           MERIDIAN VALLEY LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           MERIDIAN VALLEY VIEW LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           MIDDLETOWN (RI) ASSOCIATES OF RHODE ISLAND, L.P.
                                By: Health Resources of Middletown (RI), Inc.,
                                    its general partner

                           MILLVILLE MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Healthcare, Inc., its general
                                    partner

                           NORTH CAPE CONVALESCENT CENTER ASSOCIATES, L.P.
                                By: Geriatric and Medical Services, Inc., its
                                    general partner

                           PHILADELPHIA AVENUE ASSOCIATES
                                By: Philadelphia Avenue Corporation, its
                                    general partner

                           POINT PLEASANT HAVEN LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc. and GMA
                                    Partnership Holding Company, Inc., its
                                    general partners

                           RALEIGH MANOR LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

<PAGE>

                           RIVER STREET ASSOCIATES
                                By: Genesis Health Ventures of Wilkes-Barre,
                                    Inc., its general partner

                           ROMNEY HEALTH CARE CENTER, LTD., LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

                           SEMINOLE MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Health, Inc., its general partner

                           SISTERVILLE HAVEN LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

                           STAFFORD ASSOCIATES OF N.J., L.P.
                                By: Southern Ocean GP, LLC, its general partner

                           STATE STREET ASSOCIATES, L.P.
                                By: State Street Associates, Inc., its general
                                    partner

                           TEAYS VALLEY HAVEN LIMITED PARTNERSHIP
                                By: Glenmark Associates, Inc., its general
                                    partner

                           THE APPLE VALLEY LIMITED PARTNERSHIP
                                By: The Apple Valley Partnership Holding
                                    Company, Inc. and Apple Valley Operating
                                    Corp., its general partners

                           THE STRAUS GROUP-HOPKINS HOUSE, L.P.
                                By: Encare of Wyncote, Inc., its general
                                partner

                           THE STRAUS GROUP-QUAKERTOWN MANOR, L.P.
                                By: Encare of Quakertown, Inc., its general
                                    partner

                           THERAPY CARE SYSTEMS, L.P.
                                By: Genesis ElderCare Rehabilitation Services,
                                    Inc., its general partner

                           VOLUSIA MERIDIAN LIMITED PARTNERSHIP
                                By: Meridian Health, Inc., its general partner

                           WALLINGFORD ASSOCIATES OF CONNECTICUT, L.P.
                                By: Health Resources of Wallingford, Inc., its
                                    general partner

<PAGE>

                           WARWICK ASSOCIATES OF RHODE ISLAND, L.P.
                                By: Health Resources of Warwick, Inc., its
                                    general partner

                           WESTFORD NURSING AND RETIREMENT CENTER, LIMITED
                                PARTNERSHIP
                                By: Westford Nursing and Retirement Center,
                                Inc., its general partner

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer of the respective
                                      general partners of each of the foregoing
                                      entities

                           HOLLY MANOR ASSOCIATES OF NEW JERSEY, L.P.
                                By: Encare of Mendham, L.L.C., its general
                                partner

                           MERCERVILLE ASSOCIATES OF NEW JERSEY, L.P.
                                By: Breyut Convalescent Center, L.L.C., its
                                general partner

                           POMPTON ASSOCIATES, L.P.
                                By: Pompton Care, L.L.C., its general partner

                           THE STRAUS GROUP-OLD BRIDGE, L.P.
                                By: Health Resources of Emery, L.L.C., its
                                general partner

                           THE STRAUS GROUP-RIDGEWOOD, L.P.
                                By: Health Resources of Ridgewood, L.L.C., its
                                    general partner

<PAGE>

                           By: Century Care Management, Inc., the manager of
                                the respective general partners of each of the
                                foregoing entities

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           SOMERSET RIDGE LIMITED PARTNERSHIP
                            By: Somerset Ridge LLC, its general partner
                                By: Somerset Ridge General Partnership, its
                                Manager
                                By: Solomont Family Fall River Venture, Inc.,
                                its general partner

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           ARCADIA ASSOCIATES
                                By: ADS/Multicare, Inc., its managing partner

                                By: /s/ James V. McKeon
                                    --------------------------------------------
                                    Name:  James V. McKeon
                                    Title: Chief Financial Officer

                           MCKERLEY HEALTH FACILITIES
                                By: Meridian Healthcare, Inc. and Meridian
                                    Health, Inc., its partners

                                By: /s/ James V. McKeon
                                    --------------------------------------------
                                    Name:  James V. McKeon
                                    Title: Chief Financial Officer

<PAGE>

                           SARAH BRAYTON GENERAL PARTNERSHIP

                            By: ADS Multicare Inc. and The Sarah Brayton
                                Partnership Holding Company, Inc., its general
                                partners

                            By: /s/ James V. McKeon
                                ------------------------------------------------
                                Name:  James V. McKeon
                                Title: Chief Financial Officer

                           SOMERSET RIDGE GENERAL PARTNERSHIP

                            By: Solomont Family Fall River Venture, Inc. and
                            The Somerset Partnership Holding Company, Inc., its
                            general partners

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           BREYUT CONVALESCENT CENTER, L.L.C.

                           ENCARE OF MENDHAM, L.L.C.

                           HEALTH RESOURCES OF BRIDGETON, L.L.C.

                           HEALTH RESOURCES OF CINNAMINSON, L.L.C.

                           HEALTH RESOURCES OF CRANBURY, L.L.C.

                           HEALTH RESOURCES OF EATONTOWN, L.L.C.

<PAGE>

                           HEALTH RESOURCES OF EMERY, L.L.C.

                           HEALTH RESOURCES OF ENGLEWOOD, L.L.C.

                           HEALTH RESOURCES OF EWING, L.L.C.

                           HEALTH RESOURCES OF FAIR LAWN, L.L.C.

                           HEALTH RESOURCES OF JACKSON, L.L.C.

                           HEALTH RESOURCES OF RIDGEWOOD, L.L.C.

                           HEALTH RESOURCES OF SOUTH BRUNSWICK, L.L.C.

                           HEALTH RESOURCES OF WEST ORANGE, L.L.C.

                           POMPTON CARE, L.L.C.

                           ROEPHEL CONVALESCENT CENTER, L.L.C.

                           By: Century Care Management, Inc., the manager of
                               each of the foregoing entities

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           GENESIS-GEORGETOWN SNF/JV, LLC

                           GLENMARK LIMITED LIABILITY COMPANY I

                           MILFORD ALF, LLC

                           RESPIRATORY HEALTH SERVICES LLC

                           RIVERVIEW RIDGE LIMITED LIABILITY COMPANY

<PAGE>

                           SOUTHERN OCEAN GP, L.L.C.

                           By: /s/ James V. McKeon
                               -------------------------------------------------
                               Name:  James V. McKeon
                               Title: Chief Financial Officer

                           SOMERSET RIDGE L.L.C.

                           By: Somerset Ridge General Partnership, its Manager
                                By: Solomont Family Fall River Venture, Inc.,
                                    its general partner

                                By: The Somerset Partnership Holding Company,
                                    Inc., its general partner

                                By: /s/ James V. McKeon
                                    --------------------------------------------
                                    Name:  James V. McKeon
                                    Title:  Chief Financial Officer

<PAGE>

Confirmed and accepted as of the date first above written on behalf of
themselves and the several Initial Purchasers

WACHOVIA CAPITAL MARKETS, LLC

By: /s/ Mary Louise Guttman
    -----------------------------------------------------
    Name:  Mary Louise Guttman
    Title: Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]