Document:

<PAGE>
                                                                    EXHIBIT 10.1

CONTACT: CUSTOMER SERVICES -- CTSLINK
         WELLS FARGO BANK MINNESOTA, N.A.
         SECURITIES ADMINISTRATION SERVICES
         7485 NEW HORIZON WAY
         FREDERICK, MD  21703
         WWW.CTSLINK.COM
         TELEPHONE: (301) 815-6600
         FAX:       (301) 315-6660

                                SHT SERIES 2004-1
                         RECORD DATE: SEPTEMBER 30, 2004
                       DISTRIBUTION DATE: OCTOBER 20, 2004

                     CERTIFICATEHOLDER DISTRIBUTION SUMMARY

<TABLE>
<CAPTION>

                              Certificate                         Beginning
                                 Class        Certificate        Certificate        Interest        Principal        Current
Class             CUSIP       Description     Pass-Through         Balance        Distribution     Distribution   Realized Loss
                                                  Rate
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>             <C>                <C>              <C>              <C>            <C>

    NOTE        817419AA2         SEN               2.04125%     307,187,328.42       522,538.44    7,555,174.73            0.00
     L          SHT04002L         DRAW              2.31125%               0.00             0.00            0.00            0.00
     O          SHT04002O          OC               0.00000%       1,509,798.04             0.00            0.00            0.00
   AMBAC                          FEE               0.12000%               0.00        30,718.72            0.00            0.00
------------------------------------------------------------------------------------------------------------------------------------
Totals                                                           308,697,126.46       553,257.16    7,555,174.73            0.00
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                                 Ending             Total          Cumulative
Class             CUSIP        Certificate       Distribution     Realized Loss
                                 Balance
-------------------------------------------------------------------------------
<S>             <C>            <C>               <C>              <C>

    NOTE        817419AA2      299,632,153.69      8,077,713.17             0.00
     L          SHT04002L                0.00              0.00             0.00
     O          SHT04002O        1,928,388.47              0.00             0.00
   AMBAC                                 0.00         30,718.72             0.00
--------------------------------------------------------------------------------
Totals                         301,560,542.16      8,108,431.89             0.00
--------------------------------------------------------------------------------
</TABLE>

All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee.

                        PRINCIPAL DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>

                                   Beginning        Scheduled      Unscheduled
               Original Face      Certificate       Principal       Principal                   Realized         Total
Class              Amount           Balance       Distribution     Distribution    Accretion    Loss (1)       Principal
                                                                                                               Reduction
--------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                <C>              <C>              <C>               <C>         <C>          <C>

    NOTE       317,044,000.00     307,187,328.42           0.00      3,963,051.02        0.00         0.00     7,555,174.73
     L                   0.00               0.00           0.00              0.00        0.00         0.00             0.00
     O                  81.98       1,509,798.04           0.00              0.00        0.00         0.00             0.00
   AMBAC                 0.00               0.00           0.00              0.00        0.00         0.00             0.00
--------------------------------------------------------------------------------------------------------------------------------
Totals         317,044,081.98     308,697,126.46           0.00      3,963,051.02        0.00         0.00     7,555,174.73
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                Ending              Ending         Total Principal
Class        Certificate         Certificate        Distribution
               Balance            Percentage
------------------------------------------------------------------
<S>         <C>                 <C>               <C>

    NOTE      299,632,153.69          0.94508066       7,555,174.73
     L                  0.00          0.00000000               0.00
     O          1,928,388.47     23,522.66979751               0.00
   AMBAC                0.00          0.00000000               0.00
-------------------------------------------------------------------
Totals        301,560,542.16          0.95116282       7,555,174.73
-------------------------------------------------------------------
</TABLE>

(1)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                    PRINCIPAL DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>

                                     Beginning       Scheduled     Unscheduled                                        Total
               Original Face        Certificate      Principal      Principal                       Realized        Principal
Class             Amount              Balance       Distribution   Distribution     Accretion       Loss (3)        Reduction
---------------------------------------------------------------------------------------------------------------------------------
<S>            <C>                <C>               <C>            <C>              <C>            <C>            <C>

    NOTE       317,044,000.00         968.91071403    0.00000000     12.50000322     0.00000000       0.00000000    23.83005113
     L                   0.00           0.00000000    0.00000000      0.00000000     0.00000000       0.00000000     0.00000000
     O                  81.98     8416663.08855820    0.00000000      0.00000000     0.00000000       0.00000000     0.00000000
   AMBAC                 0.00           0.00000000    0.00000000      0.00000000     0.00000000       0.00000000     0.00000000

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                                         Ending           Total
               Ending Certificate      Certificate      Principal
Class               Balance            Percentage      Distribution
------------------------------------------------------------------
<S>            <C>                  <C>              <C>

    NOTE              945.08066290         0.94508066   23.83005113
     L                  0.00000000         0.00000000    0.00000000
     O           23522669.79751160     23522.66979751    0.00000000
   AMBAC                0.00000000         0.00000000    0.00000000

--------------------------------------------------------------------
</TABLE>

(3)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

<PAGE>

                         INTEREST DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>

                                                   Beginning                     Payment of                 Non-Supported
                                                 Certificate/       Current        Unpaid       Current      Interest
               Original Face       Current         Notional         Accrued       Interest      Interest     Shortfall
   Class          Amount         Certificate        Balance        Interest      Shortfall     Shortfall
                                    Rate
--------------------------------------------------------------------------------------------------------------------------
<S>          <C>              <C>               <C>              <C>            <C>           <C>          <C>

    NOTE       317,044,000.00         2.04125%   307,187,328.42     522,538.45          0.00          0.00         0.00
     L                   0.00         2.31125%             0.00           0.00          0.00          0.00         0.00
     O                  81.98         0.00000%     1,509,798.04           0.00          0.00          0.00         0.00
   AMBAC                 0.00         0.12000%   307,187,328.42      30,718.73          0.00          0.00         0.00
--------------------------------------------------------------------------------------------------------------------------
   Totals      317,044,081.98                                       553,257.18          0.00          0.00         0.00
--------------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>

                                            Remaining         Ending
                                              Unpaid       Certificate/
              Realized    Total Interest     Interest       Notational
   Class      Loss (4)     Distribution     Shortfall         Balance

-------------------------------------------------------------------------
<S>         <C>          <C>              <C>              <C>

    NOTE            0.00       522,538.44          0.00     299,632,153.69
     L              0.00             0.00          0.00               0.00
     O              0.00             0.00          0.00       1,928,388.47
   AMBAC            0.00        30,718.72          0.00     299,632,153.69
--------------------------------------------------------------------------
   Totals           0.00       553,257.16          0.00
--------------------------------------------------------------------------
</TABLE>

(4)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                     INTEREST DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>

                                                                                Payment of                  Non-Supported
                                  Current          Beginning         Current      Unpaid        Current      Interest
  Class (5)     Original Face   Certificate      Certificate/        Accrued     Interest      Interest      Shortfall
                   Amount           Rate       Notional Balance     Interest     Shortfall     Shortfall

---------------------------------------------------------------------------------------------------------------------------
<S>          <C>              <C>               <C>              <C>            <C>           <C>          <C>

    NOTE        317,044,000.00      2.04125%         968.91071403   1.64815751    0.00000000    0.00000000    0.00000000
      L                   0.00      2.31125%           0.00000000   0.00000000    0.00000000    0.00000000    0.00000000
      O                  81.98      0.00000%    18416663.08855820   0.00000000    0.00000000    0.00000000    0.00000000
    AMBAC                 0.00      0.12000%         968.91071403   0.09689106    0.00000000    0.00000000    0.00000000
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                                                 Remaining
                                                  Unpaid
  Class (5)        Realized         Total        Interest    Ending Certificate/
                   Loss (6)        Interest      Shortfall   Notational Balance
                                 Distribution
-----------------------------------------------------------------------------
<S>          <C>               <C>              <C>          <C>

    NOTE            0.00000000      1.64815748   0.00000000         945.08066290
      L             0.00000000      0.00000000   0.00000000           0.00000000
      O             0.00000000      0.00000000   0.00000000    23522669.79751160
    AMBAC           0.00000000      0.09689103   0.00000000         945.08066290
--------------------------------------------------------------------------------
</TABLE>

(5)   Per $1 denomination

(6)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                       CERTIFICATEHOLDER ACCOUNT STATEMENT

                               CERTIFICATE ACCOUNT

Beginning Balance                                                           0.00

Deposits
         Payments of Interest and Principal                         8,231,699.93
         Liquidations, Insurance Proceeds, Reserve Funds                    0.00
         Proceeds from Repurchased Loans                                    0.00
         Other Amounts (Servicer Advances)                                  0.00
         Realized Losses (Gains, Subsequent Expenses & Recoveries)          0.00
         Prepayment Penalties                                               0.00
                                                                    ------------
Total Deposits                                                      8,231,699.93

Withdrawals
         Reimbursement for Servicer Advances                                0.00
         Payment of Service Fee                                       123,268.02
         Payment of Interest and Principal                          8,108,431.91
                                                                    ------------
Total Withdrawals (Pool Distribution Amount)                        8,231,699.93

Ending Balance                                                              0.00
                                                                    ============

<PAGE>

                    PREPAYMENT/CURTAILMENT INTEREST SHORTFALL

Total Prepayment/Curtailment Interest Shortfall                             0.00
Servicing Fee Support                                                       0.00
                                                                            ----

Non-Supported Prepayment Curtailment Interest Shortfall                     0.00
                                                                            ====

                                 SERVICING FEES

Gross Servicing Fee                                                   119,409.31
Master Servicing Fee                                                    3,858.71
Supported Prepayment/Curtailment Interest Shortfall                         0.00
                                                                      ----------
Net Servicing Fee                                                     123,268.02
                                                                      ==========

                                 OTHER ACCOUNTS

                         Beginning        Current       Current        Ending
Account Type              Balance       Withdrawals     Deposits       Balance
------------------------------------------------------------------------------

Financial Guaranty          0.00           0.00           0.00           0.00

<PAGE>
             LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT

<TABLE>
<CAPTION>

              DELINQUENT                            BANKRUPTCY                         FORECLOSURE
----------------------------------------------------------------------------------------------------------------

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>          <C>          <C>          <C>         <C>         <C>        <C>           <C>       <C>

0-29 Days          0               0.00  0-29 Days      3       215,195.62  0-29 Days       1        48,000.00
30 Days            5         481,696.03  30 Days        0             0.00  30 Days         0             0.00
60 Days            2         207,600.00  60 Days        0             0.00  60 Days         0             0.00
90 Days            0               0.00  90 Days        0             0.00  90 Days         0             0.00
120 Days           0               0.00  120 Days       0             0.00  120 Days        0             0.00
150 Days           0               0.00  150 Days       0             0.00  150 Days        0             0.00
180+ Days          0               0.00  180+ Days      0             0.00  180+ Days       0             0.00
                -----------------------                 ------------------                  ------------------
                   7         689,296.03                 3       215,195.62                  1        48,000.00
</TABLE>

<TABLE>
<CAPTION>

                    REO                                  TOTAL
------------------------------------------------------------------------------
                  No. of     Principal                 No. of      Principal
                   Loans      Balance                  Loans        Balance
<S>             <C>         <C>          <C>           <C>          <C>

0-29 Days            0             0.00  0-29 Days       4          263,195.62
30 Days              0             0.00  30 Days         5          481,696.03
60 Days              0             0.00  60 Days         2          207,600.00
90 Days              0             0.00  90 Days         0                0.00
120 Days             0             0.00  120 Days        0                0.00
150 Days             0             0.00  150 Days        0                0.00
180+ Days            0             0.00  180+ Days       0                0.00
                     ------------------                  ---------------------
                     0             0.00                  11         952,491.65
</TABLE>

<TABLE>
<CAPTION>

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>          <C>          <C>          <C>         <C>       <C>          <C>           <C>       <C>

0-29 Days      0.000000%    0.000000%    0-29 Days  0.059630%   0.071361%   0-29 Days   0.019877%   0.015917%
30 Days        0.099384%    0.159734%    30 Days    0.000000%   0.000000%   30 Days     0.000000%   0.000000%
60 Days        0.039754%    0.068842%    60 Days    0.000000%   0.000000%   60 Days     0.000000%   0.000000%
90 Days        0.000000%    0.000000%    90 Days    0.000000%   0.000000%   90 Days     0.000000%   0.000000%
120 Days       0.000000%    0.000000%    120 Days   0.000000%   0.000000%   120 Days    0.000000%   0.000000%
150 Days       0.000000%    0.000000%    150 Days   0.000000%   0.000000%   150 Days    0.000000%   0.000000%
180+ Days      0.000000%    0.000000%    180+ Days  0.000000%   0.000000%   180+ Days   0.000000%   0.000000%
               ----------------------               ---------------------               ---------------------
               0.139137%    0.228576%               0.059630%   0.071361%               0.019877%   0.015917%

</TABLE>

<TABLE>
<CAPTION>

                 No. of     Principal                 No. of      Principal
                  Loans      Balance                  Loans        Balance
<S>            <C>         <C>          <C>         <C>           <C>

0-29 Days       0.000000%   0.000000%   0-29 Days   0.079507%     0.087278%
30 Days         0.000000%   0.000000%   30 Days     0.099384%     0.159734%
60 Days         0.000000%   0.000000%   60 Days     0.039754%     0.068842%
90 Days         0.000000%   0.000000%   90 Days     0.000000%     0.000000%
120 Days        0.000000%   0.000000%   120 Days    0.000000%     0.000000%
150 Days        0.000000%   0.000000%   150 Days    0.000000%     0.000000%
180+ Days       0.000000%   0.000000%   180+ Days   0.000000%     0.000000%
                ---------------------               -----------------------
                0.000000%   0.000000%               0.218644%     0.315854%

Current Period Class A Insufficient Funds:                            0.00

Principal Balance of Contaminated Properties                          0.00

Periodic Advance                                                      0.00

</TABLE>

<TABLE>
<CAPTION>

<S>       <C>       <C>           <C>            <C>           <C>          <C>

Class L     81.98     0.00002586%   1,928,388.47   0.64358529%   0.000000%    0.000000%
Class O      0.00     0.00000000%           0.00   0.00000000%   0.643585%    0.000000%

</TABLE>

Please refer to the prospectus supplement for a full description of loss
exposure

<PAGE>

                              COLLATERAL STATEMENT

Collateral Description                                                 Mixed Arm

Weighted Average Gross Coupon                                          4.257049%
Weighted Average Net Coupon                                            3.792868%
Weighted Average Pass-Through Rate                                     3.777868%
Weighted Average Maturity (Stepdown Calculation)                            122

Beginning Scheduled Collateral Loan Count                                 5,177
Number of Loans Paid in Full                                                146
Ending Scheduled Collateral Loan Count                                    5,031

Beginning Scheduled Collateral Balance                           307,187,328.42
Ending Scheduled Collateral Balance                              299,632,153.69
Ending Actual Collateral Balance at 30-Sept-2004                 301,560,542.16

Monthly P&I Constant                                                       0.00
Special Servicing Fee                                                      0.00
Prepayment Penalties                                                       0.00
Realized Loss Amount                                                       0.00
Cumulative Realized Loss                                                   0.00

MISCELLANEOUS REPORTING

Additional Balance Contributed Amount                                      0.00
Additional Balance                                                11,264,893.22
Cumulative Loss Percent                                                0.00000%
Managed Amortization Period                                                 YES
Overcollateralization Amount                                       1,928,388.47
Six Month Rolling Delinquency                                         0.993595%
Specified Overcollateralization Amount                             3,963,051.02
3 Largest Loan Balance                                             4,875,000.00
Draw Amount                                                       11,264,893.22
Rapid Amortization Event                                                     NO
Excess Cashflow                                                      418,590.42<PAGE>

                                                                     EXHIBIT 4.1

                       FIRST AMENDMENT TO RIGHTS AGREEMENT

         This Agreement ("Agreement"), dated as of November 4, 2004, by and
between Assisted Living Concepts, Inc., a Nevada corporation (the "Company"),
and American Stock Transfer & Trust Company, as Rights Agent (the "Rights
Agent"), constitutes the First Amendment to the Rights Agreement, effective as
of October 1, 2004 by and between the Company and the Rights Agent (the "Rights
Agreement").

                              W I T N E S S E T H:

         WHEREAS, the parties hereto desire to amend the Rights Agreement in
certain respects on the terms and conditions hereinafter set forth;

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

         1.       The Rights Agreement is hereby amended by:

         (a)      Adding the following sentence at the end of the definition of
                  "Acquiring Person" in Section 1 of the Rights Agreement:

                      "Notwithstanding any of the terms of the foregoing
                      definition, no Person shall become an "Acquiring Person"
                      as the result of the execution and delivery of, or the
                      consummation of the transactions contemplated by, the Plan
                      of Merger and Acquisition Agreement dated as of November
                      4, 2004, and any amendments thereto, (the "Merger
                      Agreement") by and among the Company, Extendicare Health
                      Services, Inc. ("Parent"), and ALC Acquisition, Inc.
                      ("Sub"), and any agreements, documents or instruments
                      executed or entered into by Company and Parent or
                      Acquisition in connection with the Merger Agreement
                      (collectively with the Merger Agreement, the "Transaction
                      Documents")."

         (b)      Adding the following sentence at the end of the definition of
                  "Share Acquisition Date" in Section 1 of the Rights Agreement:

                      "Notwithstanding any of the terms of the foregoing
                      definition, no "Share Acquisition Date" will occur as the
                      result of the execution and delivery of, or the
                      consummation of the transactions contemplated by, the
                      Transaction Documents, or any public announcement of any
                      of the foregoing."

<PAGE>

         (c)      Adding the following sentence at the end of the definition of
                  "Triggering Event" in Section 1 of the Rights Agreement:

                      "Notwithstanding any of the terms of the foregoing
                      definition, no "Triggering Event" will occur as the result
                      of the execution and delivery of, or the consummation of
                      the transactions contemplated by, the Transaction
                      Documents, or any public announcement of any of the
                      foregoing."

         (d)      Adding the following clause at the end of the definition of
                  "Distribution Date" immediately prior to the "(x)" in Section
                  3(a) of the Rights Agreement:

                      "; provided, however, that notwithstanding any of the
                      terms of the foregoing definition, no "Distribution Date"
                      will occur as the result of the execution and delivery of,
                      or the consummation of the transactions contemplated by,
                      the Transaction Documents"

         (e)      Adding the following sentence at the end of Section 7(a) of
                  the Rights Agreement:

                      "Notwithstanding anything in this Agreement to the
                      contrary, the Rights shall expire, and no holder of any
                      Rights shall be entitled to exercise such Rights,
                      immediately prior to the occurrence of the Effective Time
                      (as defined in the Merger Agreement), but only if the
                      Effective Time shall occur."

         (f)      Adding the following Section 35 to the Rights Agreement:

                      "Section 35. Termination. Immediately prior to the
                      occurrence of the Effective Time, but only if the
                      Effective Time shall occur, (a) this Agreement shall be
                      terminated and be without any further force or effect, (b)
                      none of the parties to the Rights Agreement will have any
                      rights, obligations or liabilities thereunder; provided,
                      however, Section 18 of this Agreement shall survive
                      termination of this Agreement, and (c) the holders of the
                      Rights shall not be entitled to any benefits, rights or
                      other interests under this Agreement, including, without
                      limitation, the right to purchase or otherwise acquire
                      Units or any other securities of the Company. As promptly
                      as is practicable following the termination of this
                      Agreement, the Company shall file with the Nevada
                      Secretary of State a certificate withdrawing the
                      Certificate of Designation concerning the Junior Preferred
                      Stock in accordance with the applicable provisions of the
                      Nevada Revised Statutes."

                                       2

<PAGE>

         2. The Company expressly acknowledges that the purpose and intent of
this Agreement is that the Rights Agreement and the Rights shall not apply to
the transactions contemplated by the Transaction Documents.

         3. All terms defined in the Rights Agreement that are used herein shall
have the meanings defined in the Rights Agreement, unless specifically defined
otherwise herein.

         4. The term "Agreement" or "Rights Agreement" as used in the Rights
Agreement shall mean the Rights Agreement, as amended by this Agreement, or as
it may from time to time be amended in the future by one or more other written
amendment or modification agreements entered into pursuant to the applicable
provisions of the Rights Agreement.

         5. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns.

         6. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Nevada.

         7. Except as expressly herein amended, the terms and conditions of the
Rights Agreement shall remain in full force and effect.

         8. This Agreement is not intended to be, nor shall it be construed to
be, a novation.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                       ASSISTED LIVING CONCEPTS, INC.

                                       By: /s/ Edward A. Barnes
                                           -------------------------------------
                                       Name:   Edward A. Barnes
                                       Title:  Senior Vice President and CFO

                                       AMERICAN STOCK TRANSFER & TRUST COMPANY

                                       By: /s/ Herbert J. Lemmer
                                           -------------------------------------
                                       Name:   Herbert J. Lemmer
                                       Title:  Vice President

                                       3

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