Document:

<PAGE>   1
                                                                   EXHIBIT 10.75

                               AMENDMENT NO. 2 TO
                  MASTER CONSTRUCTION LINE OF CREDIT AGREEMENT

         THIS AMENDMENT NO. 2 TO MASTER CONSTRUCTION LINE OF CREDIT
AGREEMENT, dated as of May 25, 2000 ("THIS AMENDMENT"), among the following:

                  (I) THIRD PARTY INVESTORS I, LLC, a Delaware limited liability
         company (herein, together with its successors and assigns, the
         "BORROWER");

                  (II) the lending institutions listed on the signature pages
         hereof (the "LENDERS");

                  (IV) FLEET NATIONAL BANK, a national banking association, and
         THE HUNTINGTON NATIONAL BANK, a national banking association, as
         Co-Agents; and

                  (V) KEY CORPORATE CAPITAL INC., a Michigan corporation, as
         administrative agent (the "ADMINISTRATIVE AGENT").

         PRELIMINARY STATEMENTS:

         (1) The parties hereto entered into the Master Construction Line of
Credit Agreement, dated as of August 31, 1999, as amended by Amendment No. 1
thereto, dated as of March 1, 2000 (as so amended, the "CREDIT AGREEMENT"; with
the terms defined therein, or the definitions of which are incorporated therein,
being used herein as so defined).

         (2) In connection with the execution and delivery of the Credit
Agreement, Alterra Healthcare Corporation, a Delaware corporation (herein,
together with its successors and assigns, the "COMPANY") and the Administrative
Agent entered into the Guaranty, dated as of August 31, 1999, as amended by
Amendment No. 1 thereto, dated as of March 1, 2000, as amended by Amendment No.
2 thereto, dated as of the date hereof in the form attached hereto as Exhibit A
(as so amended, the "GUARANTY").

         (3) The parties hereto desire to change certain of the terms and
provisions of the Credit Agreement, all as more fully set forth below.

         NOW, THEREFORE, the parties hereby agree as follows:

         SECTION 1. AMENDMENTS, ETC.

         1.1. REDUCTION IN COMMITMENT. Effective on the Effective Date of this
Amendment provided for in section 4 hereof, the Total Commitment shall be
partially and permanently reduced to $51,837,193. After giving effect to the
foregoing, Annex I to the Credit Agreement is amended to reflect the following
Commitments:

<PAGE>   2

<TABLE>
<CAPTION>
========================================================================================
        NAME OF LENDER                                                       COMMITMENT
========================================================================================
<S>                                                                       <C>
Key Corporate Capital Inc.                                                $19,957,319.30
----------------------------------------------------------------------------------------
Fleet National Bank                                                       $15,939,936.85
----------------------------------------------------------------------------------------
The Huntington National Bank                                              $15,939,936.85
----------------------------------------------------------------------------------------
         TOTAL                                                            $51,837,193.00
========================================================================================
</TABLE>

         1.2. INTEREST. Effective on the Effective Date of this Amendment
provided for in section 4 hereof, section 2.9 (a) of the Credit Agreement is
amended to read in its entirety as follows:

                  (A) INTEREST ON PRIME RATE LOANS. During any period in which a
         Loan is a Prime Rate Loan, the unpaid principal amount of such Loan
         shall bear interest at a fluctuating rate per annum which shall at all
         times be equal to the Prime Rate in effect from time to time, PROVIDED
         that during the Construction Period for such Project at all times prior
         to June 1, 2000, an interest rate margin of 25 basis points shall be
         added to such Prime Rate, and at all times on or after June 1, 2000, an
         interest rate margin of 50 basis points shall be added to such Prime
         Rate, PROVIDED FURTHER that during the Mini-Perm Period for such
         Project prior to the time Stabilization of such Project is achieved, at
         all times on and after June 1, 2000, an interest rate margin of 25
         basis points shall be added to such Prime Rate.

         1.3. EFFECTIVENESS OF PRICING CHANGES. The pricing changes effected
pursuant to section 1.1 of this Amendment shall be applicable as of and from and
after June 1, 2000, for all Loans outstanding on such date or thereafter.

         1.4. DSCR CURE OPTION. Effective on the Effective Date of this
Amendment provided for in section 4 hereof, section 9.6 of the Credit Agreement
is amended by adding the following text at the end of such section:

         If the Borrower fails to satisfy the ratio set forth above for any
         period then such failure shall not constitute an Event of Default
         pursuant to section 10.1(c), if (i) within forty-five days of the end
         of the relevant period, the Borrower prepays the Loans for such Project
         in an amount such that when the assumed level debt service obligations
         (consisting of both principal and interest) for such Project for such
         period and on a going-forward basis, based upon the weighted average
         aggregate principal amount of the Loans for such Project, as adjusted
         in accordance with the amount of principal prepaid, the DSCR for such
         Project for such period will meet or exceed the ratio set forth above,
         (ii) the Borrower provides to the Administrative Agent a calculation of
         the DSCR for such period including therein the effect of such
         prepayment, and (iii) the Administrative Agent confirms its receipt of
         such prepayment and that the Borrower's computations support the
         conclusion that no Event of Default occurred and so notifies the
         parties hereto (which notice the Administrative Agent shall issue
         promptly upon confirmation of such conditions).

                                        2

<PAGE>   3

         1.5. EVENTS OF DEFAULT. Effective on the Effective Date of this
Amendment provided for in section 4 hereof, sections 10.1 (c) and (j) of the
Credit Agreement are amended to read in their entirety as follows:

                  (C) CERTAIN NEGATIVE COVENANTS: the Borrower shall default in
         the due performance or observance by it of any term, covenant or
         agreement contained in sections 9.1 through 9.8, inclusive, of this
         Agreement; or the Borrower shall default in the due performance or
         observance by it of any term, covenant or agreement contained in
         section 5, 10, 16(a)(i) or 16(c) of any Mortgage; or the Guarantor
         shall default in the due performance of any term, covenant or agreement
         contained in section 13(a), 13(b), 13(c), 13(e), 13(h), 13(j), 13(k),
         13(m) or 13(n) of the Alterra Guaranty; or

                  (J) MATERIAL ADVERSE EFFECT, ETC.: (i) any event or
         circumstance shall occur or exist which has a Material Adverse Effect
         upon the Borrower or the Guarantor, as compared to the business,
         operations, property, assets, liabilities or condition (financial or
         otherwise) of the Borrower as reflected in the financial statements
         referred to in section 7.8, or the business, operations, property,
         assets, liabilities or condition (financial or otherwise) of the
         Guarantor and its Subsidiaries as reflected in the financial statements
         and the Financial Projections referred to in section 11(f) and 11(i) of
         the Alterra Guaranty, as applicable, other than changes in the
         condition of the Guarantor described in the Guarantor's annual report
         on form 10K for fiscal year 1999 and the Guarantor's quarterly report
         on form 10Q for the first quarter of 2000, as filed with the SEC and as
         reflected in the May 5, 2000 Model (as defined in the Guaranty); or

                  (ii) any representation or warranty contained in section 2.6
         of Amendment No. 2 to the Guaranty, dated as of May 25, 2000, with
         respect to the May 5, 2000 Model referred to therein, shall prove to be
         untrue in any material respect as of the date when made or deemed made.

         1.6. ADDITIONAL DEFINITIONS. Effective on the Effective Date of this
Amendment provided for in section 4 hereof, the following definitions shall be
added to section 1.1 of the Credit Agreement in appropriate alphabetic order:

                  "LIBOR CONSTRUCTION PERIOD MARGIN" shall mean (i) 250 basis
         points per annum, at all times during the period from the date of this
         Agreement through December 31, 1999, or (ii) 300 basis points per annum
         at all times from January 1, 2000 through May 31, 2000, or (iii) 325
         basis points per annum, at all times thereafter.

                  "LIBOR LEASE-UP PERIOD MARGIN" shall mean (i) 225 basis points
         per annum, at all times during the period from the date of this
         Agreement through December 31, 1999, or (ii) 275 basis points per annum
         at all times during the period from January 1, 2000 through May 31,
         2000, or (iii) 300 basis points per annum at all times thereafter,
         PROVIDED, that if (A) the EBITDAR Coverage Requirement is satisfied,
         and (B) the Administrative Agent notifies the parties hereto that such
         condition has been satisfied (which the Administrative Agent shall
         issue promptly upon satisfaction of such condition), then on the
         effective date of such notice from the Administrative Agent, the
         interest rate margin specified in clause (iii) above shall change from
         300 basis points to 275 basis points and shall remain at 275 basis
         points until the first day of any Testing Period in which such ratio is
         not maintained.

                                        3

<PAGE>   4

                  "LIBOR STABILIZED PERIOD MARGIN" shall mean (i) 200 basis
         points per annum, at all times during the period from the date of this
         Agreement through December 31, 1999, or (ii) 250 basis points per annum
         at all times during the period from January 1, 2000 through May 31,
         2000, or (iii) 275 basis points per annum at all times thereafter,
         PROVIDED that if (A) the EBITDAR Coverage Requirement is satisfied, and
         (B) the Administrative Agent notifies the parties hereto that such
         condition has been satisfied (which the Administrative Agent shall
         issue promptly upon satisfaction of such condition), then on the
         effective date of such notice from the Administrative Agent, the
         interest rate margin specified in clause (iii) above shall change from
         275 basis points to 250 basis points and shall remain at 250 basis
         points until the first day of any Testing Period in which such ratio is
         not maintained.

         1.7. LENDERS' ACKNOWLEDGMENT. Effective on the Effective Date of this
Amendment provided for in section 4 hereof, the Lenders party hereto acknowledge
and agree that the execution and delivery of the Purchase Agreement (as defined
in the Guaranty) and the consummation of the sale of the Initial Securities (as
defined in the Purchase Agreement) as contemplated thereunder shall satisfy the
obligations of the Guarantor set forth in section 13(i) of the Guaranty and such
section 13(i) shall be deemed amended to reflect that the requirements thereof
are already satisfied.

                  SECTION 2. REPRESENTATIONS AND WARRANTIES.

         The Borrower represents and warrants as follows:

         2.1. AUTHORIZATION AND VALIDITY OF AMENDMENT, ETC. This Amendment has
been duly authorized by all necessary corporate action on the part of the
Borrower, has been duly executed and delivered by a duly authorized officer of
the Borrower, and constitutes the valid and binding agreement of the Borrower,
enforceable against the Borrower in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting
creditors' rights and by equitable principles (regardless of whether enforcement
is sought in equity or at law).

         2.2. REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Credit Parties contained in the Credit Agreement, as amended hereby, or
in the other Credit Documents are true and correct in all material respects on
and as of the date hereof as though made on and as of the date hereof, except to
the extent that such representations and warranties expressly relate to an
earlier specified date, in which case such representations and warranties are
hereby reaffirmed as true and correct in all material respects as of the date
when made.

         2.3. NO EVENT OF DEFAULT. No condition or event has occurred or exists
which constitutes or which, after notice or lapse of time or both, would
constitute an Event of Default under the Credit Agreement as amended hereby,
under the Guaranty as amended or under the other Credit Documents.

         2.4. COMPLIANCE. The Borrower is in full compliance with all covenants
and agreements contained in the Credit Agreement, as amended hereby, and the
other Credit Documents to which it is a party. The Borrower acknowledges that
the Obligations are outstanding with no offset, defense or counterclaim.

                                        4

<PAGE>   5

         SECTION 3. RATIFICATIONS.

         Except as expressly modified and superseded by this Amendment, the
terms and provisions of the Credit Agreement are ratified and confirmed and
shall continue in full force and effect.

         SECTION 4. BINDING EFFECT.

         This Amendment shall become effective on a date (the "EFFECTIVE DATE"),
on or before June 2, 2000, if the following conditions shall have been satisfied
on and as of such date:

                  (A) EXECUTION OF AMENDMENT. This Amendment shall have been
         executed by the Borrower and the Administrative Agent, and counterparts
         hereof as so executed shall have been delivered to the Administrative
         Agent; and the Administrative Agent shall have been notified by the
         Required Lenders that such Lenders have executed this Amendment (which
         notification may be by facsimile or other written confirmation of such
         execution).

                  (B) GUARANTY. Amendment No. 2 to Guaranty shall have been
         executed by the Company and the Administrative Agent, and counterparts
         thereof as so executed shall have been delivered to the Administrative
         Agent.

                  (C) ACKNOWLEDGMENT AND CONSENT. The Acknowledgment and Consent
         appended hereto shall have been executed by the Company, and
         counterparts thereof as so executed shall have been delivered to the
         Administrative Agent.

                  (D) NEW CAPITAL FUNDING REQUIREMENT. The Company shall have
         provided reasonable evidence to the Administrative Agent and the
         Lenders that it has received net cash proceeds of at least $53,000,000
         (including any amounts, not in excess of $14,000,000, funded on or
         after April 26, 2000 under the bridge financing referenced in the
         Purchase Agreement) in connection with satisfaction of the New Capital
         Funding Requirement.

                  (E) FEES. The Borrower or the Company shall have paid to the
         Administrative Agent, in immediately available funds, for the pro rata
         account of the Lenders who become a signatory hereto on or prior to the
         date established by the Administrative Agent, such nonrefundable
         amendment fees as have previously been agreed to by the Borrower and
         the Company and communicated to the Lenders (the Administrative Agent
         shall promptly distribute to such Lender its pro rata portion of such
         amendment fees).

                  (F) OPERATING DEFICITS. The Company shall have paid to the
         Administrative Agent, in immediately available funds, to be held as
         part of the Collateral, the amount of $1,150,000 with such amount to be
         disbursed from time to time, provided that no Event of Default has
         occurred and is continuing, by the Administrative Agent pursuant to
         Draw Requests in accordance with section 2.3(f) to fund actual
         operating deficits for various Projects which exceed the amount of
         operating deficits identified as part of the estimated total Project
         costs included in the Project Summary & Feasibility Report for such
         Projects. Any undisbursed funds remaining after application to fund
         operating deficits in accordance with section 2.3(f) shall be released
         upon achievement of Stabilization for all Projects provided that no
         Event of Default has occurred and is continuing.

                                        5

<PAGE>   6

Thereafter this Amendment shall be binding upon and inure to the benefit of the
Borrower, the Company, the Administrative Agent, and each Lender and their
respective permitted successors and assigns. After this Amendment becomes
effective, the Administrative Agent will promptly furnish a copy of this
Amendment and Amendment No. 2 to Guaranty to each Lender, the Borrower and the
Company and advise them of the Effective Date.

         SECTION 5. MISCELLANEOUS.

         5.1. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations
and warranties made in this Amendment shall survive the execution and delivery
of this Amendment, and no investigation by the Administrative Agent or any
Lender or any subsequent Loan shall affect the representations and warranties or
the right of the Administrative Agent or any Lender to rely upon them.

         5.2. REFERENCE TO CREDIT AGREEMENT. The Credit Agreement and any and
all other agreements, instruments or documentation now or hereafter executed and
delivered pursuant to the terms of the Credit Agreement as amended hereby, are
hereby amended so that any reference therein to the Credit Agreement shall mean
a reference to the Credit Agreement as amended hereby.

         5.3. EXPENSES. As provided in the Credit Agreement, but without
limiting any terms or provisions thereof, the Borrower or the Company shall pay
on demand all reasonable costs and expenses incurred by the Administrative Agent
in connection with the preparation, negotiation, and execution of this
Amendment, including without limitation the reasonable costs and fees of the
Administrative Agent's special legal counsel, regardless of whether this
Amendment becomes effective in accordance with the terms hereof, and all
reasonable costs and expenses incurred by the Administrative Agent or any Lender
in connection with the enforcement or preservation of any rights under the
Credit Agreement, as amended hereby.

         5.4. SEVERABILITY. Any term or provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the term or provision so held to be invalid or unenforceable.

         5.5. APPLICABLE LAW. This Amendment shall be governed by and construed
in accordance with the laws of the State of Ohio.

         5.6. HEADINGS. The headings, captions and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

         5.7. ENTIRE AGREEMENT. This Amendment is specifically limited to the
matters expressly set forth herein. This Amendment and all other instruments,
agreements and documentation executed and delivered in connection with this
Amendment embody the final, entire agreement among the parties hereto with
respect to the subject matter hereof and supersede any and all prior
commitments, agreements, representations and understandings, whether written or
oral, relating to the matters covered by this Amendment, and may not be
contradicted or varied by evidence of prior, contemporaneous or subsequent oral
agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto relating to the subject matter hereof or any other
subject matter relating to the Credit Agreement.

                                        6

<PAGE>   7

         5.8. JURY TRIAL WAIVER. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY HERETO
HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

         5.9. COUNTERPARTS. This Amendment may be executed by the parties hereto
separately in one or more counterparts, each of which when so executed shall be
deemed to be an original, but all of which when taken together shall constitute
one and the same agreement.

                                        7

<PAGE>   8

         IN WITNESS WHEREOF, this Amendment has been duly executed and delivered
as of the date first above written.

THIRD PARTY INVESTORS I, LLC

BY:  TWIN OAKS CAPITAL, LLC, ITS MANAGER

       BY:           /S/ RONALD G. KENNY
          -------------------------------------------
                PRESIDENT

KEY CORPORATE CAPITAL INC.,
     INDIVIDUALLY AS A LENDER AND
     AS ADMINISTRATIVE AGENT

BY:   /S/ DAVID A. MACVICAR
   --------------------------------------------------
      VICE PRESIDENT

FLEET NATIONAL BANK,
     INDIVIDUALLY AS A LENDER AND AS CO-AGENT

BY:      /S/DORENE MCCONKLIN
   --------------------------------------------------
         SENIOR VICE PRESIDENT

THE HUNTINGTON NATIONAL BANK,
     INDIVIDUALLY AS A LENDER AND AS CO-AGENT

BY:      /S/ GREGORY RANDALL
   --------------------------------------------------
         VICE PRESIDENT

                                        8

<PAGE>   9

                           ACKNOWLEDGMENT AND CONSENT

         For the avoidance of doubt, and without limitation of the intent and
effect of sections 3 and 4 of the Guaranty executed and delivered by the
undersigned Company as guarantor (as each of such terms is defined in the Credit
Agreement referred to in the Amendment No. 2 to Credit Agreement (the
"AMENDMENT"), to which this Acknowledgment and Consent is appended), the
undersigned hereby unconditionally and irrevocably (i) acknowledges receipt of a
copy of the Credit Agreement and the Amendment, and (ii) consents to all of the
terms and provisions of the Credit Agreement as amended by the Amendment.

         Capitalized terms which are used herein without definition shall have
the respective meanings ascribed thereto in the Credit Agreement referred to
herein. This Acknowledgment and Consent is for the benefit of the Lenders and
the Administrative Agent, and their respective successors and assigns. No term
or provision of this Acknowledgment and Consent may be modified or otherwise
changed without the prior written consent of the Administrative Agent, given as
provided in the Credit Agreement. This Acknowledgment and Consent shall be
binding upon the successors and assigns of the undersigned.

         IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this Acknowledgment and Consent as of the date of the Amendment referred to
herein.

                                      ALTERRA HEALTHCARE CORPORATION
                                         AS THE GUARANTOR

                                      BY:      /S/ MARK W. OHLENDORF
                                         ---------------------------------------
                                               SENIOR VICE PRESIDENT

                                        9<PAGE>   1
                                                                  EXHIBIT 10.100

                             FOURTH MASTER AMENDMENT

         FOURTH MASTER AMENDMENT (this "MASTER AMENDMENT") dated as of June 30
2000, by PITA GENERAL CORPORATION, an Illinois corporation ("BORROWER"), ZC
SPECIALTY INSURANCE COMPANY, a Texas corporation ("Surety"), GREENWICH CAPITAL
FINANCIAL PRODUCTS, INC., a Delaware corporation ("LENDER"), ALTERRA HEALTHCARE
CORPORATION, a Delaware corporation ("GUARANTOR"), AHC TENANT, INC., a Delaware
corporation ("LESSEE"), ALS-CLARE BRIDGE, INC., a Delaware corporation
("ALS-CLARE BRIDGE"), ALI PALMER RANCH EAST, INC., a Delaware corporation ("ALI
PALMER RANCH"), SELCO SERVICE CORPORATION, an Ohio corporation ("SELCO"), BANK
ONE, NATIONAL ASSOCIATION, a national banking association duly established with
its principal corporate trust office located in Chicago, Illinois (formerly
known as THE FIRST NATIONAL BANK OF CHICAGO) ("TRUSTEE"), CLARE BRIDGE OF CITRUS
HEIGHTS L.P., CLARE BRIDGE OF COBB COUNTY L.P., CLARE BRIDGE OF COLORADO SPRINGS
L.P., CLARE BRIDGE OF DECATUR L.P., CLARE BRIDGE OF EAST MESA L.P., CLARE BRIDGE
OF OVERLAND PARK L.P., CLARE BRIDGE OF PEORIA L.P., CLARE BRIDGE OF RENO L.P.,
CLARE BRIDGE OF ROANOKE L.P., CLARE BRIDGE OF SOUTH PARK L.P., CLARE BRIDGE OF
SUN CITY WEST DEER VALLEY L.P., WYNWOOD OF BOYNTON BEACH WEST L.P., WYNWOOD OF
BREA L.P., WYNWOOD OF DUNEDIN L.P., WYNWOOD OF EMERSON L.P., WYNWOOD OF TUCSON
L.P., WYNWOOD OF WAYNE L.P., WYNWOOD OF WESTLAKE L.P., WYNWOOD OF WEST ORANGE,
L.P. AND WYNWOOD OF WHITTIER L.P. (collectively, the "INITIAL JOINT VENTURES")
and CLARE BRIDGE OF DENVER L.P., WYNWOOD OF BOYNTON BEACH CONGRESS L.P., WYNWOOD
OF PALMER RANCH EAST L.P., WYNWOOD OF SARASOTA L.P., CLARE BRIDGE OF FULTON
COUNTY L.P. AND WYNWOOD OF FULTON COUNTY L.P. (the "ADDITIONAL JOINT VENTURES",
and together with the Initial Joint Ventures, the "JOINT VENTURES").

                                 R E C I T A L S

                  WHEREAS, Borrower, Lessee, Surety, Lender, Guarantor, SELCO,
and Trustee are parties to that certain Amended and Restated Trust Agreement,
dated as of December 20, 1999 (as amended, restated, supplemented or otherwise
modified from time to time, the "TRUST AGREEMENT"), pursuant to which the
parties thereto have, among other things, appointed Trustee to act as trustee.

                  WHEREAS, Borrower, Lessee and Lender are parties to that
certain Amended and Restated Loan Agreement, dated as of December 20, 1999 (as
amended, restated, supplemented or otherwise modified from time to time, the
"LOAN AGREEMENT"), pursuant to which the Lender has made the Loans (as defined
therein) to Borrower.

                  WHEREAS, Borrower, Lessee, Surety, Lender, Guarantor, SELCO
and Trustee are parties to that certain Participation Agreement, dated as of
July 16, 1999, as amended by that

<PAGE>   2

certain Master Amendment, Confirmation and Acknowledgment Agreement, dated as of
September 28, 1999, and further amended by that certain Second Master Amendment,
dated as of December 20, 1999 and that certain Third Master Amendment dated as
of May 31, 2000, each among the parties (as amended, restated, supplemented or
otherwise modified from time to time, the "PARTICIPATION AGREEMENT").

                  WHEREAS, pursuant to a letter agreement dated as of May 31,
2000, the parties have agreed to amend Section 9.5 of the Participation
Agreement and certain definitions used therein as hereinafter provided.

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

                                   ARTICLE I
                                   DEFINITIONS

                  Section 1.1   DEFINITIONS. Capitalized terms used but not
otherwise defined herein shall have the respective meanings given thereto in
that certain Amended and Restated Master Glossary of Definitions dated as of
December 20, 1999 (as amended, restated, supplemented or otherwise modified from
time to time, the "MASTER GLOSSARY").

                                   ARTICLE II
                       AMENDMENT OF TRANSACTION DOCUMENTS

                  Section 2.1   AMENDMENT OF THE MASTER GLOSSARY OF DEFINITIONS.
The Master Glossary of Definitions is hereby amended as follows:

                          (a)   The following definitions are hereby added to
the Master Glossary of Definitions:

                                (i)   "FOURTH MASTER AMENDMENT" shall mean that
                  certain Fourth Master Amendment, dated as of JUNE 30, 2000,
                  among Borrower, Surety, Lender, Guarantor, Lessee, Trustee and
                  certain other parties thereto.

                                (ii)   "GUARANTOR RENTAL OBLIGATIONS" means
                  rental expense under leases which have been or should be, in
                  accordance with GAAP, treated as operating leases (net of
                  sublease income with respect to such leases).

                                (iii) "NET INCOME" shall mean, for any period,
                  with respect to Guarantor and its Subsidiaries on a
                  consolidated basis, net income (excluding extraordinary items)
                  after Guarantor Interest Obligations, income taxes,
                  depreciation and amortization, all as determined in accordance
                  with GAAP (net of sublease income with respect to operating
                  leases).

<PAGE>   3

                                (iv)  "SYNTHETIC LEASE" means any synthetic
                  lease, tax retention operating lease, off-balance sheet loan
                  or similar off-balance sheet financing product where such
                  transaction is considered borrowed money indebtedness for tax
                  purposes but is classified as an operating lease on the books
                  of Guarantor.

                  (b)  The definitions of "EBITDAR," "GUARANTOR INTEREST
         OBLIGATIONS", "TOTAL CAPITAL" and "TOTAL FUNDED DEBT" are hereby
         deleted in their entirety and replaced with the following:

                                (i)   "EBITDAR" shall mean, for any period, with
                  respect to Guarantor and its Subsidiaries on a consolidated
                  basis, the sum of (i) Net Income for such period plus (ii) the
                  following to the extent deducted in computing such Net Income:
                  (a) income tax expense, (b) interest expense, (c) depreciation
                  and amortization expense, (d) non-cash non-recurring losses
                  arising out of the ordinary course of business (including
                  without limitation any adjustments to Guarantor's and its
                  Subsidiaries' book tax valuation allowance), (e) cash
                  non-recurring net losses related to the sale of assets in an
                  amount not to exceed $25 million and (f) cash non-recurring
                  losses in connection with any charges related to the reduction
                  or elimination of overhead cost or restructuring of
                  Guarantor's and its Subsidiaries' stock option program in an
                  amount not to exceed $10 million, all as determined in
                  accordance with GAAP plus (iii) Guarantor Rental Obligations
                  minus (iv) the following to the extent added in computing such
                  Net Income: (a) income tax benefit, (b) interest income and
                  (c) extraordinary or non-recurring gains, all as determined in
                  accordance with GAAP.

                                (ii)  "GUARANTOR INTEREST OBLIGATIONS" means the
                  sum of all interest expense net of interest income (including
                  the amortization of debt discount and premium and the interest
                  component under leases which have been or should be, in
                  accordance with GAAP, capitalized on the books of the
                  Guarantor and its Subsidiaries and the implied interest
                  component under Synthetic Leases but excluding the
                  amortization of deferred financing costs, amendment fees paid
                  and bridge loan fees paid), as determined in accordance with
                  GAAP.

                                (iii) "TOTAL CAPITAL" shall mean the sum of Net
                  Worth, Total Funded Debt, Subordinated Debt (expressly
                  including the Debentures issued pursuant to the Purchase
                  Agreement) and book equity which exists in entities for which
                  guaranties are included in the definition of Total Funded
                  Debt.

                                (iv)   "TOTAL FUNDED DEBT" shall mean, at any
                  time, the sum at such time of (a) indebtedness for borrowed
                  money (expressly excluding, however, the amount of convertible
                  securities of the Guarantor

                                       3
<PAGE>   4
                  and its Subsidiaries (including the Debentures issued pursuant
                  to the Purchase Agreement) outstanding on such date) or for
                  the deferred purchase price of property or services, (b) any
                  obligations in respect of letters of credit, banker's or other
                  acceptances or similar obligations issued or created for the
                  account of the Guarantor and its Subsidiaries, (c) the
                  principal portion of lease obligations which have been or
                  should be, in accordance with GAAP, capitalized on the books
                  of the Guarantor and its Subsidiaries, (d) all liabilities
                  secured by any property owned by the Guarantor or its
                  Subsidiaries, as the case may be, to the extent attached to
                  the Guarantor's or its Subsidiary's interest in such property,
                  even though the Guarantor or its Subsidiary has not assumed or
                  become liable for the payment thereof, (e) the principal
                  amount of all obligations of Guarantor and its Subsidiaries
                  under Synthetic Leases (f) obligations of the type identified
                  in clauses (a) through (e) above of another Person which are
                  guaranteed by Guarantor and its Subsidiaries and (g)
                  obligations of the type identified in clauses (a) through (e)
                  above of any partnership or unincorporated joint venture in
                  which Guarantor or any of its Subsidiaries is legally
                  obligated or has a reasonable expectation of being liable with
                  respect thereto; but excluding (a) trade and other accounts
                  payable in the ordinary course of business in accordance with
                  customary trade terms and which are not overdue (as determined
                  in accordance with customary trade practices) or which are
                  being disputed in good faith by the Guarantor or its
                  Subsidiary and for which adequate reserves are being provided
                  on the books of the Guarantor and its Subsidiaries in
                  accordance with GAAP and (b) customary reservations or
                  retentions of title under agreements with suppliers entered
                  into in the ordinary course of business.

         Section 2.2   AMENDMENT OF PARTICIPATION AGREEMENT. Sections 9.5 (a),
(b) and (c) of the Participation Agreement are hereby deleted in their entirety
and replaced with the following:

                                (a) Invested Equity. Guarantor shall maintain at
                  all times the sum of (i) Net Worth plus (ii) the outstanding
                  amount of the Debentures (as defined in the Purchase
                  Agreement, dated as of April 26, 2000, among Guarantor,
                  RDVEPCO, L.L.C., Group One Investors, L.L.C. and Holiday
                  Retirement 2000, L.L.C., as amended (the "PURCHASE
                  AGREEMENT")) greater than or equal to $110,000,000, increased
                  on a cumulative basis as of the end of each fiscal quarter of
                  Guarantor commencing with the fiscal quarter ending March 31,
                  2000 by (A) an amount equal to 50% of Net Income (to the
                  extent positive) for the fiscal quarter then ended plus (B) an
                  amount equal to 75% of the proceeds from any equity capital
                  (or equity equivalent) securities offering subsequent to
                  December 31, 1999, and 75% of the amount of any pay-in-kind
                  dividends or coupons issued subsequent to December 31, 1999.

                                (b) Ratio of Total Funded Debt to Total Capital.
                  Guarantor shall maintain on a consolidated basis with all
                  Subsidiaries a

                                       4
<PAGE>   5

                  maximum ratio of Total Funded Debt to Total Capital of
                  seventy-five percent (75%) measured as of the last day of any
                  fiscal quarter of Guarantor.

                                (c) Ratio of EBITDAR to Interest and Rent.
                  Guarantor shall maintain on a consolidated basis with all
                  Subsidiaries, (i) as of the end of the fiscal quarter ending
                  March 31, 2000, for the three month period ending on such
                  date, (ii) as of the end of the fiscal quarter ending June 30,
                  2000, for the six month period ending on such date, (iii) as
                  of the fiscal quarter ending September 30, 2000 for the nine
                  month period ending on such date and (iv) as of the end of
                  each fiscal quarter beginning with the fiscal quarter ending
                  December 31, 2000, for the four fiscal quarter period ending
                  on such date, a minimum ratio of EBITDAR to the sum of
                  Guarantor Interest Obligations plus Guarantor Rental
                  Obligations, greater than or equal to:

<TABLE>
<CAPTION>

            Fiscal Year       1st Quarter      2nd Quarter      3rd Quarter     4th Quarter
            -----------       -----------      -----------      -----------     -----------
<S>                         <C>              <C>              <C>             <C>
            2000              0.75 to 1.0      0.75 to 1.0      0.75 to 1.0     0.75 to 1.0
            2001              0.75 to 1.0      0.82 to 1.0      0.91 to 1.0     1.0 to 1.0
            2002              1.06 to 1.0      1.13 to 1.0      1.19 to 1.0     1.25 to 1.0
</TABLE>

                                  ARTICLE III
             REPRESENTATIONS AND WARRANTIES OF LESSEE AND GUARANTOR

         To induce Lender, Borrower and Surety to amend the Transaction
Documents upon the terms and conditions of this Master Amendment, each of Lessee
and Guarantor represents and warrants that the following statements are true,
correct and complete as of the date hereof and shall be true and correct as of
the Effective Date (hereinafter defined):

                  Section 3.1   ORGANIZATION, POWERS, CAPITALIZATION, GOOD
STANDING, BUSINESS.

                           (a)  Organization and Powers. Each of Guarantor and
         Lessee is a corporation duly organized, validly existing and in good
         standing under the laws of the State of Delaware. Guarantor is the sole
         stockholder of Lessee. Each of Guarantor and Lessee has all requisite
         power and authority to own and operate its properties, to carry on its
         business as now conducted and proposed to be conducted, and to enter
         into this Master Amendment and to perform the terms hereof.

                           (b)  Capitalization; Ownership. All issued and
         outstanding shares of capital stock of Lessee and Guarantor are duly
         authorized and validly issued, fully paid, nonassessable, free and
         clear of all Liens (other than Permitted Liens), and such shares were
         issued in compliance with all applicable state and federal laws
         concerning the issuance of securities. There are no preemptive or other
         outstanding rights, options,

                                       5
<PAGE>   6

         warrants, conversion rights or similar agreements or understandings for
         the purchase or acquisition of any shares of capital stock or other
         securities of such entities (except, in the case of Guarantor, as
         described in Sections 4.1(a) and 4.1(b) below or as disclosed in its
         most recent quarterly report on Form 10-Q filed with the SEC).

                           (c)  Qualification. Each of Guarantor and Lessee is
         duly qualified and in good standing in the state of its formation.
         Guarantor and Lessee are also duly qualified and in good standing in
         the states where the Properties are located, and in each state where it
         is necessary to carry on its present business and operations, except in
         jurisdictions in which the failure to be qualified and in good standing
         could not reasonably be expected to have a Material Adverse Effect.

                           (d)  Business; Assets. The sole assets of Lessee are
         its leasehold interests in and to the Properties, Improvements and
         Assisted Living Facilities and Equipment under the Master Lease, its
         sublessor's interest in the Subleases and its right, title and
         interest, if any, in and to the Permits, if any, and personal property
         appurtenant or related thereto and the Excluded Collateral.

                  Section 3.2   AUTHORIZATION.

                           (a)  Authorization. The execution, delivery and
         performance by Guarantor and Lessee of this Master Amendment (and each
         of the Transaction Documents to which it is a party as amended hereby)
         and the consummation of the transactions contemplated hereby, have been
         duly authorized by all necessary corporate action.

                           (b)  No Conflicts; No Consents or Approvals. The
         execution, delivery and performance by each of Guarantor and Lessee of
         this Master Amendment and the consummation of the transactions
         contemplated hereby, do not and will not: (1) violate (x) any provision
         of law applicable to it; (y) its Charter Documents; or (z) any order,
         judgment or decree of any court or other agency of government binding
         on either of them or any of their Affiliates; (2) conflict with, result
         in a breach of or constitute (with due notice or lapse of time or both)
         a default under any material Contractual Obligation of Guarantor or
         Lessee or any of their Affiliates; (3) result in or require the
         creation or imposition of any material Lien (other than the Lien of the
         Transaction Documents and the Lien or other interest of SELCO or its
         Affiliates in and to the Excluded Collateral) upon the Property or
         assets of Guarantor or Lessee or any of their Affiliates; or (4) except
         as set forth on Schedule 3.2(b), require any approval or consent of any
         Person under any material Contractual Obligation of any Borrower Party,
         which approvals or consents have been obtained on or before the dates
         required under such Contractual Obligation, but in no event later than
         the Effective Date.

                           (c)  Governmental Consents. The execution, delivery
         and performance by each of Guarantor and Lessee of this Master
         Amendment and the consummation of the transactions contemplated hereby,
         do not and will not require any registration with, consent or approval
         of, or notice to, or other action to, with or by, any federal, state or
         other governmental authority or regulatory body.

                                       6
<PAGE>   7

                           (d)  Binding Obligations. This Master Amendment (and
         the other Transaction Documents each, as amended hereby) are the
         legally valid and binding obligations of Guarantor and Lessee, as
         applicable, enforceable against Guarantor and Lessee, as applicable, in
         accordance with their respective terms, subject to bankruptcy,
         insolvency, moratorium, reorganization and other similar laws affecting
         creditor's rights. Neither Guarantor nor Lessee has any defense or
         offset to any of its obligations under this Master Amendment or the
         Transaction Documents.

                                   ARTICLE IV
                                  MISCELLANEOUS

                  Section 4.1   REFERENCES. Upon the effectiveness of this
Master Amendment, all references in any of the Transaction Documents and in all
other agreements, documents, certificates, exhibits and instruments executed
pursuant thereto, including, without limitation, references to "this Agreement,"
"hereunder," "hereof," "herein" and words of like import contained in any such
Transaction Documents shall, except where the context otherwise requires, mean
and be a reference to the applicable Transaction Document as amended hereby.

                  Section 4.2  COUNTERPARTS, SEVERABILITY AND EFFECTIVENESS.
This Master Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement. Any provisions of this Master
Amendment which are prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. This Master
Amendment shall become effective upon the execution of a copy hereof, whether by
the same or different copies, by the parties hereto.

                  Section 4.3  TRUSTEE. The parties hereto acknowledge and agree
that Trustee is acting not in its individual capacity, but solely in its
capacity as Trustee under the Trust Agreement, and at the direction of the
Controlling Party, as evidenced by the Controlling Party's execution hereof.

                  Section 4.4  GOVERNING LAW. THIS MASTER AMENDMENT SHALL BE
GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS.

                  Section 4.5  NO WAIVERS. Except as otherwise expressly set
forth herein, nothing herein, nor any actions taken or omitted to be taken by
Surety, Borrower, SELCO or Lender pursuant hereto or pursuant to the Transaction
Documents shall, or shall be deemed to, (i) constitute a waiver or amendment of
any other covenant, term or agreement set forth in the Transaction Documents,
(ii) constitute a waiver of any Default or Event of Default now or hereafter
existing under any of the Transaction Documents (other than the Existing
Defaults), (iii) constitute a waiver of any rights or remedies of Surety,
Borrower, SELCO or Lender under any of the Transaction Documents or at law or in
equity, each of such rights and remedies being

                                       7
<PAGE>   8

hereby expressly reserved by Surety, Borrower, SELCO and Lender or (iv)
constitute a course of dealing among the parties.

                  Section 4.6  EXPENSES. Guarantor shall be required to pay all
reasonable out-of-pocket costs and expenses (including, without limitation,
reasonable attorneys' fees and disbursements) incurred by Lender, Borrower,
SELCO, Trustee and Surety in connection with the preparation, negotiation,
execution and delivery of this Master Amendment and any and all other documents
and agreements executed and delivered in connection with this Master Amendment
and the consummation of the transactions contemplated hereby.

                  Section 4.7  RATIFICATION BY CLARE BRIDGE OF FULTON COUNTY
L.P. To avoid any ambiguity caused by a clerical error delaying the filing by
the Secretary of State of Delaware of a name change from Clare Bridge/Wynwood of
Fulton County L.P. to Clare Bridge of Fulton County L.P., the undersigned Clare
Bridge of Fulton County hereby ratifies and affirms all obligations undertaken
in the name of Clare Bridge of Fulton County L.P. pursuant to the Transaction
Documents and related documents and any amendments thereto, and acknowledge that
such obligations are its obligations and are in full force and effect.

                  Section 4.8  CONSENT TO TERMINATION OF SUBMANAGER. The parties
hereto hereby consent to the termination of that certain Nursing Facility
Consultant and Submanagement Services Agreement dated as of September 28, 1999
between ALI Palmer Ranch and Manor Care of Boynton Beach, Inc.

                  Section 4.9  RATIFICATION AND REAFFIRMATION BY GRANTOR.
Guarantor's obligations under the Guaranty and the Excluded Collateral Agreement
are hereby reaffirmed and ratified and shall continue in full force and effect
notwithstanding (a) the transactions contemplated by this Master Amendment, and
(b) the execution and delivery of (i) this Master Amendment and any other
documents to be delivered in connection with the transactions contemplated
hereby and (ii) any amendments to the Transaction Documents and related
documents by the parties thereto.

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

                                       8
<PAGE>   9

                                   "BORROWER":

                                   PITA GENERAL CORPORATION,
                                   an Illinois corporation

                                   By: /s/ Mindy Berman
                                       -----------------------------------------
                                       Mindy Berman
                                       Vice President

                                   "SURETY":

                                   ZC SPECIALTY INSURANCE COMPANY,
                                   a Texas corporation

                                   By: /s/ Lynn Finkel
                                       -----------------------------------------
                                       Lynn Finkel
                                       Vice President

                                       9
<PAGE>   10

                                   "LENDER":

                                   GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.,
                                   a Delaware corporation

                                   By: /s/ Warren Ashenmil
                                       -----------------------------------------
                                       Warren Ashenmil
                                       Senior Vice President

                                   "GUARANTOR":

                                   ALTERRA HEALTHCARE CORPORATION,
                                   a Delaware corporation

                                   By: /s/ Mark W. Ohlendorf
                                       -----------------------------------------
                                       Mark W. Ohlendorf
                                       Chief Financial Officer

                                    "LESSEE":

                                    AHC TENANT, INC.,
                                    a Delaware corporation

                                    By: /s/ Mark W. Ohlendorf
                                        ----------------------------------------
                                        Mark W. Ohlendorf
                                        Vice President

                                       10
<PAGE>   11

                                  "SELCO":

                                  SELCO SERVICE CORPORATION,
                                  an Ohio corporation

                                  By: /s/ Donald C. Davis
                                      ----------------------------------------
                                      Donald C. Davis
                                      Vice President

                                  "TRUSTEE":

                                  BANK ONE, NATIONAL ASSOCIATION, with
                                  its principal office located in Chicago,
                                  Illinois (formerly known as THE FIRST NATIONAL
                                  BANK OF CHICAGO), as Trustee

                                  By: /s/ Jeffrey L. Kinney
                                      ------------------------------------------
                                      Jeffrey L. Kinney
                                      Vice President

                                       11
<PAGE>   12

                                "JOINT VENTURES"

                                CLARE BRIDGE OF CITRUS HEIGHTS L.P., CLARE
                                BRIDGE OF COBB COUNTY L.P., CLARE BRIDGE OF
                                COLORADO SPRINGS L.P., CLARE BRIDGE OF DECATUR
                                L.P., CLARE BRIDGE OF EAST MESA L.P., CLARE
                                BRIDGE OF OVERLAND PARK L.P., CLARE BRIDGE OF
                                PEORIA L.P., CLARE BRIDGE OF RENO L.P., CLARE
                                BRIDGE OF ROANOKE L.P., CLARE BRIDGE OF SOUTH
                                PARK L.P., CLARE BRIDGE OF SUN CITY WEST DEER
                                VALLEY L.P., WYNWOOD OF BOYNTON BEACH WEST L.P.,
                                WYNWOOD OF BREA L.P., WYNWOOD OF DUNEDIN L.P.,
                                WYNWOOD OF EMERSON L.P., WYNWOOD OF TUCSON L.P.,
                                WYNWOOD OF WAYNE L.P., WYNWOOD OF WESTLAKE L.P.,
                                WYNWOOD OF WEST ORANGE, L.P. AND WYNWOOD OF
                                WHITTIER L.P., CLARE BRIDGE OF DENVER L.P.,
                                WYNWOOD OF BOYNTON BEACH CONGRESS L.P., WYNWOOD
                                OF PALMER RANCH EAST L.P., WYNWOOD OF SARASOTA
                                L.P., CLARE BRIDGE OF FULTON COUNTY L.P. AND
                                WYNWOOD OF FULTON COUNTY L.P.

                                By: Alterra Healthcare Corporation, the sole
                                    general partner of each of the foregoing
                                    limited partnerships

                                By: /s/ Mark W. Ohlendorf
                                    --------------------------------------------
                                    Mark W. Ohlendorf
                                    Chief Financial Officer

                                       12
<PAGE>   13
                                "ALS-CLARE BRIDGE":

                                ALS-CLARE BRIDGE INC.,
                                a Delaware corporation

                                By: /s/ Mark W. Ohlendorf
                                    --------------------------------------------
                                    Mark W. Ohlendorf
                                    Vice President

                                "ALI PALMER RANCH":

                                ALI PALMER RANCH EAST, INC.,
                                a Delaware corporation

                                By: /s/ Mark W. Ohlendorf
                                    --------------------------------------------
                                    Mark W. Ohlendorf
                                    Vice President

                                       13

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