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                                                                       EX-10.4.1
STOCK OPTION PLAN

                         DREXLER TECHNOLOGY CORPORATION
                              AMENDED AND RESTATED
                                STOCK OPTION PLAN

     1.     PURPOSES. Drexler Technology Corporation (hereinafter called the
"Company") has adopted this Amended and Restated Stock Option Plan (this "Plan")
to enhance the concern of the Company's key employees, officers, directors, and
consultants in the success of the Company by giving them an ownership interest
in the Company, and to give them an incentive to continue their service to the
Company.

     2.     STOCK SUBJECT TO PLAN. The Company shall reserve 4,025,000 shares of
its $0.01 par value Common Stock (hereinafter called the "Shares") to be issued
upon exercise of the options which may be granted from time to time under this
Plan. As it may from time to time determine, the Board of Directors of the
Company (hereinafter called the "Board") may authorize that the Shares may be
comprised, in whole or in part, of authorized but unissued shares of the Common
Stock of the Company or of issued shares which have been reacquired. If options
granted under this Plan terminate or expire before being exercised in whole or
in part, the Shares subject to those options which have not been issued may be
subjected to subsequent options granted under this Plan.

            The number of shares covered by options granted to any person during
any twelve month period shall not exceed 100,000 shares, subject to adjustment
in accordance with Section 5a. However, in connection with such person's initial
service to the Company, he or she may be granted options to purchase up to an
additional 100,000 shares.

     3.     ADMINISTRATION OF THIS PLAN. The Board shall appoint a Stock Option
Committee (hereinafter called the "Committee") to administer this Plan which
Committee shall consist of not less than two (2) members of the Board, each of
whom shall be a "Non-Employee Director" as defined in Rule 16b-3 under the
Securities Exchange Act of 1934, as amended. Subject to the express provisions
of this Plan and guidelines which may be adopted from time to time by the Board,
the Committee shall have plenary authority in its discretion (a) to determine
the individuals to whom, and the time at which, options are granted, and the
number and purchase price of the Shares subject to each option; (b) to determine
whether the options granted shall be "incentive stock options" within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended
(hereinafter called the "Code"), or non-statutory stock options, or both; (c) to
interpret this Plan and prescribe, amend, and rescind rules and regulations
relating to it; (d) to determine the terms and provisions (and amendments
thereof) of the respective option agreements subject to Section 6 of this Plan,
which need not be identical, including, if the Committee shall determine that a
particular option is to be an incentive stock option, such terms and provisions
(and amendments thereof) as the Committee deems necessary to provide for an
incentive stock option or to conform to any change in any law, regulation,
ruling or interpretation applicable to incentive stock options; and (e) to make
any and all determinations which the Committee deems necessary or advisable in
administering this Plan. The Committee's determination on the foregoing matters
shall be conclusive. The Committee may delegate any of the foregoing authority
to the Chief Executive Officer with respect to options granted to or which are
held by persons who are neither officers nor directors of the Company.

     4.     PERSONS ELIGIBLE. The Committee may grant incentive stock options to
key employees of the Company or its subsidiaries (including officers and
directors) and non-statutory stock options to key employees or consultants
(including officers and directors) of the Company or its subsidiaries. For this
purpose, "employee" shall conform to the requirements of Section 422 of the
Code, and "subsidiary" means subsidiary corporations as defined in Section 424
of the Code.

            The aggregate fair market value (determined as of the time the
option is granted) of the Shares with respect to which incentive stock options
are exercisable by an optionee for the first time during any calendar year
(under all incentive stock option plans of the Company or its parent or
subsidiaries) shall not exceed $100,000.

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     5.     CHANGES IN CAPITAL STRUCTURE.

            a.      Effect on this Plan. In the event of changes in the
outstanding capital stock of the Company by reason of any stock dividend, stock
split or reverse split, reclassification, recapitalization, merger or
consolidation, acquisition of 80% or more of its gross assets or stock,
reorganization or liquidation, the Committee and/or the Board shall make such
adjustments in the aggregate number and class of shares available under this
Plan as it deems appropriate, and such determination shall be final, binding,
and conclusive.

            b.      In Outstanding Options. Should a stock dividend, stock
split, reverse stock split, reclassification, or recapitalization occur, then
the Committee and/or the Board shall make such adjustments in (i) the number and
class of shares to which optionees will thereafter be entitled upon exercise of
their options and (ii) the price which optionees shall be required to pay upon
such exercise as it in its sole discretion in good faith deems appropriate, and
such determination shall be final, binding, and conclusive. Notwithstanding the
foregoing, such adjustments shall have the result that an optionee exercising an
option subsequent to such occurrence would pay the same aggregate exercise price
to exercise the entire option and would then hold the same class and aggregate
number of shares as if such optionee would have exercised the outstanding option
immediately prior to such occurrence.

            c.      In the event of any merger or consolidation of the Company
(except with a subsidiary) or any acquisition of 80% or more of its gross assets
or stock, or any reorganization or liquidation of the Company (an "Event"), the
Board shall make arrangements (the "Arrangements") which shall be binding upon
the holders of unexpired options then outstanding under this Plan as the Board,
in its sole discretion, in good faith determines to be in the best interests of
the Company, which determination shall be final, binding, and conclusive. The
possible Arrangements include, but are not limited to, the substitution of new
options for any portion of such unexpired options, the assumption of any portion
of such unexpired options by any successor to the Company, the acceleration of
the expiration date of any portion of such unexpired options to a date not
earlier than thirty (30) days after notice to the optionee, or the cancellation
of such portion in exchange for the payment by any successor to the Corporation
of deferred compensation to the optionee, in an amount equal to the difference
between the fair market value of the Shares subject to such unexpired portion
and the aggregate exercise price of the Shares under the terms of such unexpired
portion on the date of the Event, in installments which correspond to the
vesting schedule of the unexpired option. The Board shall not be obligated to
arrange such substitution or assumption to comply with Section 424(a) of the
Code or to accelerate the exercisability of a portion of an option when it
accelerates the expiration date of such portion. The Board or Committee may from
time to time issue guidelines as to what Arrangements it deems appropriate
should an Event occur. The guidelines currently issued by the Board of Directors
are attached hereto as Attachment A. These guidelines may be changed at any time
without notice. Accordingly, optionees have no vested right with respect to the
Arrangements which may be made upon the occurrence of an Event.

     6.     TERMS AND CONDITIONS OF OPTIONS. Each option granted under this Plan
shall be evidenced by a stock option agreement (hereinafter called "Agreement")
which is not inconsistent with this Plan, and the form of which the Committee
and/or Board may from time to time determine, provided that the Agreement shall
contain the substance of the following:

            a.      Option Price. The option price shall be not less than 100%
of the fair market value of the Shares at the time the option is granted, which
shall be the date the Committee and/or Board, or its delegate, awards the grant.
If the optionee, at the time the option is granted, owns stock possessing more
than 10% of the total combined voting power of all the classes of stock of the
Company or of its parent or subsidiaries (a "Principal Shareholder"), the option
price of incentive stock options granted such Principal Shareholder shall be not
less than 110% of the fair market value of the Shares at the time the option is
granted. The fair market value of the Shares shall be determined and the option
price of the Shares set by the Committee and/or Board or its delegate in
accordance with the valuation methods described in Section 20.2031-2 of the
Treasury Regulations.

            b.      Method of Exercise. At the time of purchase, Shares
purchased under options shall be paid for in full either (i) in cash (including
pursuant to a cashless exercise as permitted under the Federal Reserve Board
regulations, subject to applicable securities law restrictions), (ii) at the
discretion of the Committee and/or Board, with outstanding stock of the Company
at such value as the Board shall determine in its sole discretion to be the fair
market value of such stock on the date of exercise in accordance with the

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valuation methods discussed in Section 20.2031-2 of the Treasury Regulations, or
(iii) a combination of stock (if permitted pursuant to (ii) above) and cash (as
described in (i) above). Notwithstanding any provision to the contrary in this
Plan, a form of payment will not be available if such form of payment would
violate any law or regulation. For incentive stock options granted before August
26, 2002, if outstanding stock is used as payment and such stock was acquired
upon prior exercise of an option, then such stock must have been held by the
optionee for at least one year subsequent to such prior exercise and two years
subsequent to the grant of the prior exercised option. For all other options,
stock acquired upon prior exercise of an option may not be used as payment of
the exercise price if such action would cause the Company to recognize
compensation expense (or additional compensation expense) with respect to the
option for financial reporting purposes. To the extent that the right to
purchase Shares has accrued under an option, the optionee may exercise said
option from time to time by giving written notice to the Company stating the
number of Shares with respect to which the optionee is exercising the option,
and submitting with said notice payment of the full purchase price of said
Shares either in cash or, at the discretion of the Board and/or Committee as
described above, with outstanding stock of the Company, or a combination of cash
and such stock. As soon as practicable after receiving such notice and payment,
the Company shall issue, without transfer or issue tax to the optionee (or other
person entitled to exercise the option), and at the main office of the Company
or such other place as shall be mutually acceptable, a certificate or
certificates representing such Shares out of authorized but unissued Shares or
reacquired Shares of its capital stock, as the Board and/or Committee, or its
delegate, may elect, for the number of Shares to be delivered. The time of such
delivery may be postponed by the Company for such period as may be required for
it with reasonable diligence to comply with such procedures as may, in the
opinion of counsel to the Company, be desirable in view of federal and state
laws, including corporate securities laws and revenue and taxation laws. If the
optionee (or other person entitled to exercise the option) fails to accept
delivery of any or all of the number of Shares specified in such notice upon
tender of delivery of the certificates representing them, the right to exercise
the option with respect to such undelivered Shares may be terminated.

            c.      Option Term. The Committee and/or Board or its delegate may
grant options for any term, but shall not grant any options for a term longer
than ten (10) years from the date the option is granted (except in the case of
an incentive stock option granted to a Principal Shareholder in which case the
term shall be no longer than five (5) years from the date the option is
granted). Each option shall be subject to earlier termination as provided in
this Section 6 of this Plan.

            d.      Exercise of Options. Each option granted under this Plan
shall be exercisable on such date or dates, upon or after the occurrence of
certain events, or upon or after the achievement of certain performance
milestones (which dates may be accelerated or which occurrences or achievements
may be waived in whole or in part or extended at the discretion of the Committee
and/or Board or its delegate) and during such period and for such number of
Shares as shall be determined by the Committee and/or Board or its delegate. An
incentive option granted to a non-officer may not be exercised at any time
unless the optionee shall have continuously served, to the extent determined by
the Committee and/or Board or its delegate, as an employee of the Company or its
subsidiary throughout a period commencing at the date an option is granted and
ending no more than three (3) months and no less than thirty (30) days before an
attempted exercise of the option (except as the option term may be extended in
the event of death or disability pursuant to Section 6f), and, if applicable,
unless the Committee and/or Board or its delegate shall determine and notify the
optionee in writing that certain events have occurred or certain performance
milestones have been achieved.

            e.      Nonassignability of Option Rights. No option shall be
assignable or transferable by the optionee except by will or by the laws of
descent and distribution. During the life of an optionee, the option shall be
exercisable only by the optionee.

            f.      Effect of Termination of Employment or Death or Disability.
In the event the optionee's employment with the Company and/or its subsidiaries
ceases, as determined by the Committee, during the optionee's lifetime for any
reason, including retirement (but not including disability as defined herein),
any option or unexercised portion thereof which is otherwise exercisable shall
terminate unless exercised within a period not to exceed three (3) months nor to
be less than thirty (30) days of the date on which such employment ceased but
not later than the date of expiration of the option period. In the event of the
death of the optionee while employed or within a period not to exceed three
months nor to be less than thirty (30) days of the date on which such employment
ceases, or the termination of the optionee's employment due to disability (as

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defined in Code Section 22(e)(3)), any option or unexercised portion thereof
granted to the optionee, if otherwise exercisable by the optionee at the date of
death or termination of employment due to disability, may be exercised by the
optionee (or by the optionee's personal representatives, heirs or legatees) at
any time prior to the expiration of one (1) year from the date of termination of
optionee's employment but not later than ten (10) years from the date of grant
of such option except that, in the case of an incentive option granted to a
Principal Shareholder, not later than five (5) years from the date of grant of
such option.

            g.      Rights of Optionee. The optionees shall have no rights as a
stockholder with respect to any Shares subject to an option until the date of
issuance of a stock certificate to the optionee for such Shares. No adjustment
shall be made for dividends or other rights of which the record date is prior to
the date such stock certificate is issued. Neither this Plan, nor any action or
agreement thereunder, shall confer any rights of employment, any rights to
election or retention as an officer or director, or any rights to serve as a
consultant.

     7.     USE OF PROCEEDS. The proceeds from the sale of stock pursuant to
options granted under this Plan shall constitute general funds of the Company.

     8.     AMENDMENT OF PLAN. The Board of Directors may at any time amend this
Plan, provided that no amendment may affect any then outstanding options or any
unexercised portions thereof absent the optionee's consent, and provided further
that any such amendment materially increasing the number of Shares reserved
under this Plan, materially altering the persons or class of persons eligible to
be granted stock options under this Plan, causing options granted to employees
and intended to be incentive options under this Plan not to qualify as
"incentive stock options" under Section 422 of the Code, or amending this
Section 8 shall be subject to shareholder approval. Any amendment to this Plan
which would cause the acquisition or disposition of an option granted under this
Plan by an officer or director of the Company not to be exempt from the
operation of Section 16(b) of the Securities Exchange Act of 1934 pursuant to
rules and regulations promulgated pursuant to such Section, case law or SEC
releases or no-action letters interpreting such Section, or new Federal statute
or amendments to such Section, shall also be subject to shareholder approval.

     9.     EFFECTIVE DATE AND TERMINATION OF PLAN. This Plan was adopted by the
Board of Directors on November 30, 1990, and was approved by the shareholders on
March 1, 1991. This Plan has been amended from time as permitted hereunder, most
recently on August 26, 2002. The Board may terminate this Plan at any time. If
not earlier terminated, this Plan shall terminate May 16, 2010. Termination of
this Plan will not affect rights and obligations theretofore granted and then in
effect.

            This Plan, the granting of any option hereunder, and the issuance of
stock upon the exercise of any option, shall be subject to such approval or
other conditions as may be required or imposed by any regulatory authority
having jurisdiction to issue regulations or rules with respect thereto,
including the securities laws of various governmental entities.

     10.    AUTOMATIC OPTION GRANTS TO DIRECTORS. Subject to registration and
qualification under federal and state securities laws as is advised by counsel,
the Company's current and future directors are hereby granted options under this
Plan as follows: (i) on the date of the Company's Annual Meeting of
Stockholders, each of the Company's Non-Employee Directors (as defined in Rule
16b-3 under the Securities Exchange Act of 1934, as amended, but whether or not
such director serves as a member of the Stock Option Committee), who is
re-elected at such meeting to another term as a director, and who has served the
Company as a director for the immediately preceding six-month period, shall
automatically and without any further action by the Board be granted a
Non-Statutory Stock Option to purchase 6,000 shares of the Company's Common
Stock; and (ii) on the date any person first becomes a director, whether through
election by the Company's shareholders or appointment by the Board of Directors
to fill a vacancy, each such person shall automatically and without further
action by the Board be granted a Non-Statutory Stock Option to purchase 15,000
shares of the Company's Common Stock.

     The exercise price for such options shall be equal to the trading price for
the Company's stock on the date of grant in the over-the counter market
calculated pursuant to subparagraphs (b) and (c) of Section 20.2031-2 of the
Treasury Regulations. The date of grant of an option shall, for all purposes, be
the date determined in accordance with the terms of this Section 10. The
foregoing options shall be for a term of ten (10) years and are to be
exercisable as follows: (i) the 6,000 option share grants to re-elected
directors shall be immediately exercisable in full; and (ii) the 15,000 option

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share grants to newly elected or appointed directors shall be exercisable in
cumulative increments of one-fourth each at the end of 12 months, 24 months, 36
months, and 48 months if the optionee is still a director of the Company or its
subsidiaries. Upon the occurrence of an event described in Section 5(b) of this
Plan, the number of option shares which a director shall be granted pursuant to
the foregoing formula, and the class of stock which is the subject of such
option grant, shall be automatically adjusted such that directors receiving an
automatic option grant subsequent to the occurrence of such event shall receive
the same aggregate number of option shares, and would then hold the same class
of stock, as if such director had been granted the option prior to the
occurrence of such event.

            In the event an automatic option grant(s) pursuant to this Section
10 would result in option shares having been granted in excess of the number of
option shares then remaining available for grant under this Plan, then such
option grant(s) shall be made contingent upon a proper amendment to this Plan to
accommodate such grants.

            Notwithstanding Section 8 of this Plan, the foregoing automatic
option grant formula may not be amended more than once every six months, other
than to comport with changes to the Internal Revenue Code, the Employee
Retirement Income Security Act, or the rules thereunder.

     11.    LIMITED AUTHORITY TO ALTER TERMS OF OPTIONS. Within the parameters
of Section 6 of this Plan, the Board of Directors may, at their discretion,
alter the terms of options to be granted pursuant to Section 10 hereof, or which
were previously granted pursuant to Section 10 hereof.

8/26/2002 Amended and Restated Stock Option Plan

                                -----------------

            "ATTACHMENT A" TO AMENDED AND RESTATED STOCK OPTION PLAN

   THIS MATERIAL CONSTITUTES PART OF THE PROSPECTUS COVERING THESE SECURITIES,
           WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933

                DREXLER TECHNOLOGY CORPORATION BOARD OF DIRECTORS
POLICY GUIDELINES FOR ADJUSTMENT OF STOCK OPTIONS IN THE EVENT OF AN ACQUISITION
                                               [November 30, 1990]

BACKGROUND

     The Company's Stock Option Plan (the "Plan") presently provides that in the
event of a merger or other recapitalization, the Board of Directors shall make
appropriate adjustments to the terms of the outstanding options. The Plan gives
only minor guidance as to what adjustments would be considered "appropriate."

POLICY

     (1)    In the event of the acquisition of all or substantially all of the
Company's assets or capital stock, adjustments are deemed "appropriate" if:

            (a)     the vested portion of options may be exercised prior to the
acquisition on not less than 30 days' notice; and

            (b)     arrangements are made so that subject to continued
employment of the optionee with the successor corporation, the unvested portion
of options will receive one of the following benefits:

                    (i)      a replacement option that can be exercised on the
same vesting schedule at the same total exercise price to purchase the stock or
other securities of the successor

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corporation that would have been received had the unvested option shares been
outstanding at the time of the acquisition; or

                    (ii)     a cash payment made with respect to each option
share at the time of vesting equal to the excess of the per-share value paid for
the acquisition (whether in cash or in securities of the successor corporation)
over the option exercise price.

     (2)    In the event the employment relationship between the employee and
the successor corporation is terminated within one year of the date of the sale
of the Company, it is intended that 100% of the remaining unvested portion of
all options held by such employee on the date of the sale of the Company would
vest and remain exercisable for at least 90 days after the termination, provided
that:

            (a)     the employee had been employed by the Company continuously
(except for approved leaves of absence) for at least two years prior to the date
of the sale of the Company; and

            (b)     the employment relationship of the successor corporation and
the employee was NOT terminated by either:

                    (i)      resignation by the employee; or

                    (ii)     by the successor corporation due to acts of moral
turpitude on the part of the employee such as theft, embezzlement, fraud,
dishonesty, misappropriation or conversion of funds committed against the
Company or successor corporation, or due to the employee's material breach of an
agreement with the Company or successor corporation concerning disclosure and
ownership of inventions, conflict of interest, or confidentiality of
information.

     In the event the successor corporation had not assumed outstanding Company
options but rather was paying deferred compensation whenever Company options
vested, then the successor corporation would pay the employee the amount
corresponding to such accelerated vesting.

EFFECT

     This policy guideline may be changed at any time by the Stock Option
Committee or the Company's Board of Directors. It does not constitute a part of
this Plan. The right of the Company or its successors to terminate the
employment of an optionee, with or without cause, shall not be affected by this
guideline.

Attachment A to Amended and Restated Stock Option Plan

                                       6Exhibit 10.36
                          EXECUTIVE SEVERANCE AGREEMENT

James W. Ekberg                                                        Executive
6345 S.W. Dolph Drive
Portland, Oregon 97219

Regent Assisted Living, Inc.                                           Company
An Oregon corporation
121 S.W. Morrison St., Suite 1000
Portland, Oregon  97204

Date:  September 19, 2001.

         The Company considers the establishment and maintenance of a sound and
vital management to be essential to protecting and enhancing the best interests
of Company and its stakeholders. In this connection, Company recognizes that, as
is the case with many publicly held corporations, the possibility of a change of
control may exist and that such possibility, and the uncertainty and questions
which it may raise among management, may result in the departure or distraction
of management personnel to the detriment of Company and its shareholders. In
order to induce Executive to remain employed by Company in the face of
uncertainties about the long-term strategies of Company and a possible change of
control of Company and their potential impact on Executive's position with
Company, this Executive Severance Agreement ("Agreement"), which has been
approved by the Board of Directors of Company, sets forth the severance benefits
that Company will provide to Executive in the event Executive's employment by
Company is terminated under the circumstances described in this Agreement.

         1. Employment Relationship. Executive is currently employed by Company
as Senior Vice President of Finance and Development. Executive and Company
acknowledge that either party may terminate this employment relationship at any
time and for any or no reason, subject to the obligation of Company to provide
the severance benefits specified in this Agreement in accordance with the terms
hereof.

         2. Release of Claims. In consideration for and as a condition precedent
to receiving the severance benefits outlined in this Agreement, Executive agrees
to execute a Release of Claims in the appropriate form attached as Exhibit A
("Release of Claims"). Executive promises to execute and deliver the Release of
Claims to Company within the later of (a) 45 days from the date Executive
receives the Release of Claims or (b) the last day of Executive's active
employment.

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         3. Compensation Upon Termination. In the event of a Termination of
Executive's Employment (as defined in Section 6.1) at any time other than for
Cause (as defined in Section 6.2 of this Agreement), death or Disability (as
defined in Section 6.4 of this Agreement), or within 12 months following a
Change of Control or prior to a Change of Control at the direction of a person
who has entered into an agreement with Company, the consummation of which will
constitute a Change of Control, and contingent upon Executive's execution of the
Release of Claims and compliance with Section 9, Executive shall be entitled to
the following benefits:

                  3.1 Base Amount. As severance pay and in lieu of any other
compensation for periods subsequent to the date of termination, Company shall
pay Executive, in a single payment after employment has terminated and eight
days have passed following execution of the Release of Claims without
revocation, an amount in cash equal to one year of Executive's annual base pay
at the rate in effect immediately prior to the date of termination.

                  3.2 Health Insurance. Executive is entitled to extend coverage
under any group health plan in which Executive and Executive's dependents are
enrolled at the time of termination of employment for an 18-month period.
Company will pay Executive a lump sum payment in an amount equivalent to the
cost to extend such coverage for a period of 18 months, based on the then
current rates for COBRA employee only group health and dental coverage under the
Company's group health plan in effect at the time of termination. Executive may
use this payment, as well as any payment made under Section 3.1, for such
continuation coverage or for any other purpose.

                  3.3 Stock Options and Stock Awards. All outstanding stock
options, restricted stock, stock bonuses or other stock awards shall be governed
by the terms of the applicable agreement or plan.

         4. Tax Withholding; Subsequent Employment.

                  4.1 All payments provided for in this Agreement are subject to
applicable tax withholding obligations imposed by federal, state and local laws
and regulations.

                  4.2 The amount of any payment provided for in this Agreement
shall not be reduced, offset or subject to recovery by Company by reason of any
compensation earned by Executive as the result of employment by another employer
after termination.

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          5. Other Agreements. In the event that severance benefits are payable
to Executive under any other agreement with Company in effect at the time of
termination (including but not limited to any employment agreement, but
excluding for this purpose any stock option agreement or stock bonus agreement
that may provide for accelerated vesting or related benefits upon the occurrence
of a change in control), the benefits provided in this Agreement shall not be
payable to Executive. Executive may, however, elect to receive all of the
benefits provided for in this Agreement in lieu of all of the benefits provided
in all such other agreements. Any such election shall be made with respect to
the agreements as a whole, and Executive cannot select some benefits from one
agreement and other benefits from this Agreement.

         6.  Definitions.

                  6.1 Termination of Executive's Employment. Termination of
Executive's Employment means that Company has terminated Executive's employment
with Company (including any subsidiary of Company). For purposes of Section 3,
if Executive is assigned additional or different titles, tasks or
responsibilities from those currently held or assigned, consistent with
Executive's areas of professional expertise and with no decrease in annual base
compensation, whether at Company or any subsidiary of Company, such
circumstances shall not constitute a Termination of Executive's Employment. For
purposes of Section 3, Termination of Executive's Employment shall include
termination by Executive, within 12 months of a Change of Control, by written
notice to Company referring to the applicable paragraph of Section 6.1, for
"Good Reason" based on:

                           (A) the assignment to Executive of a different title,
                  job or responsibilities that results in a decrease in the
                  level of responsibility of Executive with respect to the
                  surviving company after the Change of Control when compared to
                  Executive's level of responsibility for Company' operations
                  prior to the Change of Control; provided that Good Reason
                  shall not exist if Executive continues to have the same or a
                  greater general level of responsibility for the former Company
                  operations after the Change of Control as Executive had prior
                  to the Change of Control even if the former Company operations
                  are a subsidiary or division of the surviving company;

                           (B) a reduction by Company or the surviving company
                  in Executive's base pay as in effect immediately prior to the
                  Change of Control;

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                           (C) a significant reduction by Company or the
                  surviving company in total benefits available to Executive
                  under cash incentive, stock incentive and other employee
                  benefit plans after the Change of Control compared to the
                  total package of such benefits as in effect prior to the
                  Change of Control;

                           (D) Company or the surviving company requires
                  Executive to be based more than 20 miles from where
                  Executive's office is located immediately prior to the Change
                  of Control except for required travel on company business to
                  an extent substantially consistent with the business travel
                  obligations which Executive undertook on behalf of Company
                  prior to the Change of Control; or

                           (E) the failure by Company to obtain from any
                  successor (whether direct or indirect, by purchase, merger,
                  consolidation or otherwise) to all or substantially all of the
                  business and/or assets of Company ("Successor") the assent to
                  this Agreement contemplated by Section 7 hereof.

                           6.2 Cause. Termination of Executive's Employment for
         "Cause" shall mean termination upon (a) the willful and continued
         failure by Executive to perform substantially Executive's reasonably
         assigned duties with Company (other than any such failure resulting
         from Executive's incapacity due to physical or mental illness) after a
         demand for substantial performance is delivered to Executive by the
         Board, the Chief Executive Officer or the President of Company which
         specifically identifies the manner in which the Board or Company
         believes that Executive has not substantially performed Executive's
         duties, (b) any misappropriation of funds or property of the Company by
         Executive, (c) the conviction of or plea of guilty or nolo contendere
         by Executive of a felony or of any crime involving moral turpitude, (d)
         Executive's engagement in illegal or immoral conduct tending to place
         Executive or the Company, by association with Executive, in disrepute,
         (e) indulgence in alcohol or drugs to an extent that renders Executive
         generally unable or unfit to perform his duties hereunder, (f)
         Executive's gross dereliction of duty, or (g) any act or omission that
         constitutes a material breach by Executive of his obligations under
         this Agreement.

                  No act, or failure to act, on Executive's part shall be
         considered "willful" unless done, or omitted to be done, by Executive
         without reasonable belief that Executive's action or omission was in,
         or not opposed to, the best interests of Company. Any act, or failure
         to act, based upon authority given pursuant to a

                                       4
<PAGE>

         resolution duly adopted by the Board or based upon the advice of
counsel for Company shall be conclusively presumed to be done, or omitted to be
done, by Executive in the best interests of Company.

                  6.3 Change of Control. A Change of Control shall mean that one
of the following events has taken place:

                           (A) The shareholders of Company approve one of the
                  following ("Approved Transactions"):

                                    (i) Any merger or statutory plan of exchange
                  involving Company ("Merger") in which Company is not the
                  continuing or surviving corporation or pursuant to which
                  Common Stock would be converted into cash, securities or other
                  property, other than a Merger involving Company in which the
                  holders of Common Stock immediately prior to the Merger have
                  the same proportionate ownership of Common Stock of the
                  surviving corporation after the Merger; or

                                    (ii) Any sale, lease, exchange, or other
                  transfer (in one transaction or a series of related
                  transactions) of all or substantially all of the assets of
                  Company or the adoption of any plan or proposal for the
                  liquidation or dissolution;

                           (B) A tender or exchange offer, other than one made
                  by Company, is made for Common Stock (or securities
                  convertible into Common Stock) and such offer results in a
                  portion of those securities being purchased and the offeror
                  after the consummation of the offer is the beneficial owner
                  (as determined pursuant to Section 13(d) of the Securities
                  Exchange Act of 1934, as amended (the "Exchange Act")),
                  directly or indirectly, of securities representing at least 20
                  percent of the voting power of outstanding securities of
                  Company;

                           (C) Company receives a report on Schedule 13D of the
                  Exchange Act reporting the beneficial ownership by any person
                  (other than Walter C. Bowen or any of his affiliates) of
                  securities representing 20 percent or more of the voting power
                  of outstanding securities of Company, except that if such
                  receipt shall occur during a tender offer or exchange offer
                  described in

                                       5
<PAGE>
                  (B) above, a Change of Control shall not take
                  place until the conclusion of such offer;

                           (D) During any period of 6 months or less, any
                  transaction or series of transactions that results in the
                  holders of a majority of the outstanding securities of the
                  Company prior to such transaction or transactions holding less
                  than a majority of the outstanding securities of the Company
                  after such transaction or transactions;

                           (E) During any period of 12 months or less,
                  individuals who at the beginning of such period constituted a
                  majority of the Board of Directors cease for any reason to
                  constitute a majority thereof unless the nomination or
                  election of such new directors was approved by a vote of at
                  least two-thirds of the directors then still in office who
                  were directors at the beginning of such period;

                           (F) The entry of an order for relief under Title 11
                  of the United States Code as to the Company or the
                  determination of the Company as insolvent or bankrupt pursuant
                  to the provisions of any state insolvency or bankruptcy laws;
                  the commencement by the Company of any case, proceeding or
                  other action seeking any reorganization, arrangement,
                  composition, adjustment, liquidation, dissolution or similar
                  relief for itself under any present or future statute, law or
                  regulation relating to bankruptcy, insolvency, reorganization
                  or other relief for debtors; the Company's consent to,
                  acquiescence in or attempt to secure the appointment of any
                  receiver of all or any part of its properties and such
                  receivership or trusteeship shall continue undischarged for a
                  period of sixty (60) days or more; the Company shall generally
                  not pay its debts as they become due or shall admit in writing
                  its inability to pay its debts or shall make a general
                  assignment for the benefit of creditors; or the Company
                  (including the shareholders of the Company) shall take any
                  action to authorize any of the acts set forth above in this
                  paragraph; or

                           (G) Any case, proceeding or other action against the
                  Company shall be commenced seeking to have an order for relief
                  entered against it as a debtor or seeking any reorganization,
                  arrangement, composition, adjustment, liquidation, dissolution
                  or similar relief under any present or future statute, law or
                  regulation relating to bankruptcy, insolvency, reorganization
                  or other relief for debtors, or seeking appointment of any
                  receiver for the Company or for all or any substantial part of
                  its property, and such case, proceeding or other action is not
                  dismissed or stayed within sixty (60) days after it is filed.

                                       6
<PAGE>
Notwithstanding anything in the foregoing to the contrary, no Change of Control
shall be deemed to have occurred for purposes of this Agreement by virtue of any
transaction which results in Executive, or a group of persons which includes
Executive, acquiring, directly or indirectly, securities representing 20 percent
or more of the voting power of outstanding securities of Company.

                  6.4 Disability. Termination of Executive's Employment based on
"Disability" shall mean termination without further compensation under this
Agreement, due to Executive's absence from Executive's full-time duties with
Company for 180 consecutive days as a result of Executive's incapacity due to
physical or mental illness, unless within 30 days after notice of termination by
Company following such absence Executive shall have returned to the full-time
performance of Executive's duties.

          7.      Successors; Binding Agreement.

                   7.1 This Agreement shall be binding on and inure to the
benefit of Company and its Successors and assigns. Upon Executive's written
request, Company will seek to have any Successor by agreement, assent to the
fulfillment by Company of its obligations under this Agreement. If such a
request is made, failure of Company to obtain such assent prior to or at the
time a company becomes a Successor shall constitute Good Reason for termination
by Executive of his or her employment and, if a Change of Control of the Company
has occurred, shall entitle Executive to the benefits pursuant to Section 3.

                  7.2 This Agreement shall inure to the benefit of and be
enforceable by Executive and Executive's legal representatives, executors,
administrators and heirs.

          8. Resignation of Corporate Offices. Executive will resign Executive's
office, if any, as a director, officer or trustee of Company, its subsidiaries
or affiliates and of any other corporation or trust of which Executive serves as
such at the request of Company, effective as of the date of termination of
employment. Executive agrees to provide Company such written resignation(s) upon
request and that no severance will be paid until after such resignation(s) are
provided.

          9. Governing Law, Arbitration. This Agreement shall be construed in
accordance with and governed by the laws of the State of Oregon. Executive and
Company agree that should the issue arise of whether either party to this
Agreement has failed to satisfy or has breached the terms of this Agreement, any
dispute regarding the issue, shall be, upon the demand of Employee or the
Company, conclusively arbitrated in Portland, Oregon, pursuant to the rules of
the Arbitration Service of Portland, Inc. In the event that any arbitration or
action is filed in relation to this Agreement, the unsuccessful party shall pay
to the successful party, in addition to all sums that either party may be called
upon to pay, a reasonable sum for the successful party's reasonable attorney
fees and costs.

                                       7
<PAGE>
          10. Amendment. No provision of this Agreement may be modified unless
such modification is agreed to in a writing signed by Executive and Company.

          11. Severability. If any of the provisions or terms of this Agreement
shall for any reason be held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other terms of this Agreement, and this
Agreement shall be construed as if such unenforceable term had never been
contained in this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

         IN WITNESS WHEREOF, the foregoing Agreement is hereby executed as of
the date first above written.

Regent Assisted Living, Inc.

By: /s/ Walter C. Bowen                   /s/ James W. Ekberg
    --------------------------------      --------------------------------------
      Walter C. Bowen                       Executive
      Chief Executive Officer

                                       9
<PAGE>
                                                                      EXHIBIT A
                                RELEASE OF CLAIMS

1.       PARTIES.
         -------

         The parties to Release of Claims (hereinafter "Release") are __________
_______  and Regent Assisted Living, Inc., an Oregon corporation, as hereinafter
defined.

          1.1     EXECUTIVE.
                  ----------
                  For the purposes of this Release, "Executive" means _________
____________, and his or her attorneys, heirs, executors, administrators,
assigns, and spouse.

          1.2     THE COMPANY.
                  -----------

                  For purposes of this Release the "Company" means Regent
Assisted Living, Inc., an Oregon corporation, its predecessors and successors,
corporate affiliates, and all of each corporation's officers, directors,
employees, insurers, agents, or assigns, in their individual and representative
capacities.

2.       BACKGROUND AND PURPOSE.
         ----------------------

                  Executive was employed by Company. Executive's employment is
ending effective __________ pursuant to Section 3 of the Executive Severance
Agreement dated ________ between Executive and the Company ("Agreement").

                  The purpose of this Release is to settle, and the parties
hereby settle, fully and finally, any and all claims Executive may have against
Company, whether asserted or not, known or unknown, including, but not limited
to, claims arising out of or related to Executive's employment, any claim for
reemployment, or any other claims whether asserted or not, known or unknown,
past or future, that relate to Executive's employment, reemployment, or
application for reemployment.

3.       RELEASE.
         -------

                  Except as reserved in paragraphs 3 or 3.1, Executive waives,
acquits and forever discharges Company from any obligations Company has and all
claims Executive may have including but not limited to obligations and/or claims
arising from the Agreement or any other document or oral agreement relating to
employment compensation, benefits severance or post-employment issues. Except as
reserved in Paragraph 3.1, Executive hereby releases Company from any and all
claims, demands, actions, or causes of action, whether known or unknown, arising
from or related in any way to any employment of or past or future failure or
refusal to employ Executive by Company, or any other past or future claim
(except as reserved by this Release or where expressly prohibited by law) that
relates in any way to Executive's employment, compensation, benefits,
reemployment, or application for employment, with the
<PAGE>
exception of any claim Executive may have against Company for enforcement of
this Release. This release includes any and all claims, direct or indirect,
which might otherwise be made under any applicable local, state or federal
authority, including but not limited to any claim arising under the Oregon
statutes dealing with employment, discrimination in employment, Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With
Disabilities Act, the Family and Medical Leave Act of 1993, the Equal Pay Act of
1963, Executive Order 11246, the Rehabilitation Act of 1973, the Uniformed
Services Employment and Reemployment Rights Act of 1994, the Age Discrimination
in Employment Act, the Fair Labor Standards Act, Oregon wage and hour statutes,
all as amended, any regulations under such authorities, and any applicable
contract, tort, or common law theories.

         3.1      Reservations of Rights.
                  ----------------------

                  This Release shall not affect any rights which Executive may
have under any medical insurance, disability plan, workers' compensation,
unemployment compensation, applicable company stock incentive plan(s),
indemnifications, or the 401(k) plan maintained by the Company.

         3.2      No Admission of Liability.
                  -------------------------

                  It is understood and agreed that the acts done and evidenced
hereby and the release granted hereunder is not an admission of liability on the
part of Executive or Company, by whom liability has been and is expressly
denied.

4.       CONSIDERATION TO EXECUTIVE.
         --------------------------

                  After receipt of this Release fully endorsed by Executive, and
the expiration of the seven- (7) day revocation period provided by the Older
Workers Benefit Protection Act without Executive's revocation, Company shall pay
the lump sum of ___________ DOLLARS ($__________ ) to Executive (less proper
withholding) for severance and the reasonable estimate of COBRA continuation
coverage as provided in Section[s] 3.1 and 3.2 of the Agreement.

5.       NO DISPARAGEMENT.
         ----------------

                  Executive agrees that henceforth Executive will not disparage
or make false or adverse statements about Company. The Company should report to
Executive any actions or statements that are attributed to Executive that the
Company believes are disparaging. The Company may take actions consistent with
breach of this Release should it determine that Executive has disparaged or made
false or adverse statements about Company. The Company agrees to follow the
applicable policy(ies) regarding release of employment reference information.

6.       CONFIDENTIALITY, PROPRIETARY, TRADE SECRET AND RELATED INFORMATION.
         -------------------------------------------------------------------
<PAGE>

                   Executive acknowledges the duty and agrees not to make
unauthorized use or disclosure of any confidential, proprietary or trade secret
information learned as an employee about Company, its products, customers and
suppliers, and covenants not to breach that duty. Moreover, Executive
acknowledges that, subject to the enforcement limitations of applicable law, the
Company reserves the right to enforce the terms of Executive's Employment
Agreement with Company and any paragraph(s) therein. Should Executive,
Executive's attorney or agents be requested in any judicial, administrative, or
other proceeding to disclose confidential, proprietary or trade secret
information Executive learned as an employee of Company, Executive shall
promptly notify the Company of such request by the most expeditious means in
order to enable the Company to take any reasonable and appropriate action to
limit such disclosure.

7.       ARBITRATION OF CERTAIN DISPUTES.
         -------------------------------

                  Executive and Company agree that should the issue arise of
whether either party to this Agreement has failed to satisfy or has breached the
terms of this Agreement, any dispute regarding the issue, shall be, upon the
demand of Employee or the Company, conclusively arbitrated in Portland, Oregon,
pursuant to the rules of the Arbitration Service of Portland, Inc. In the event
that any arbitration or action is filed in relation to this Agreement, the
unsuccessful party shall pay to the successful party, in addition to all sums
that either party may be called upon to pay, a reasonable sum for the successful
party's reasonable attorney fees and costs.

8.       SCOPE OF RELEASE.
         ----------------

                  The provisions of this Release shall be deemed to obligate,
extend to, and inure to the benefit of the parties; Company's parents,
subsidiaries, affiliates, successors, predecessors, assigns, directors,
officers, and employees; and each parties insurers, transferees, grantees,
legatees, agents and heirs, including those who may assume any and all of the
above-described capacities subsequent to the execution and effective date of
this Release.

9.       OPPORTUNITY FOR ADVICE OF COUNSEL.
         ---------------------------------

                  Executive acknowledges that Executive has been encouraged to
seek advice of counsel with respect to this Release and has had the opportunity
to do so.

10.      ENTIRE RELEASE.
         --------------

                  This Release and the Agreement signed by Executive contain the
entire agreement and understanding between the parties and, except as reserved
in paragraph 3 and 3.1, supersede and replace all prior agreements written or
oral including but not limited to the Agreement, prior negotiations and proposed
agreements, written or oral. Executive and Company acknowledge that no other
party, nor agent nor attorney of any other party, has made any promise,
representation, or warranty, express or implied, not contained in this Release
concerning the subject matter of this Release to induce this Release, and
Executive and Company acknowledge that they have not executed this Release in
reliance upon any such promise, representation, or warranty not contained in
this Release.
<PAGE>

11.      SEVERABILITY.
         ------------

                  Every provision of this Release is intended to be severable.
In the event any term or provision of this Release is declared to be illegal or
invalid for any reason whatsoever by a court of competent jurisdiction or by
final and unappealed order of an administrative agency of competent
jurisdiction, such illegality or invalidity should not affect the balance of the
terms and provisions of this Release, which terms and provisions shall remain
binding and enforceable.

12.      PARTIES MAY ENFORCE RELEASE.
         ---------------------------

                  Nothing in this Release shall operate to release or discharge
any parties to this Release or their successors, assigns, legatees, heirs, or
personal representatives from any rights, claims, or causes of action arising
out of, relating to, or connected with a breach of any obligation of any party
contained in this Release.

13.      COSTS AND ATTORNEY'S FEES.
         -------------------------

                  The parties each agree to bear their own costs and attorneys'
fees which have been or may be incurred in connection with any matters released
herein or in connection with the negotiation and consummation of this Release.
In the event of any administrative or civil action to enforce the provisions of
this Release, the prevailing party shall be entitled to attorney fees and costs
through trial and/or on appeal.

14.   ACKNOWLEDGMENTS.
     ----------------

                  Executive acknowledges that the Release provides severance pay
and benefits which the Company would otherwise have no obligation to provide.

                  Executive acknowledges that Company has provided the following
information: (a) the class or group of employees offered the opportunity to
obtain severance benefits similar to those in the Release, (b) the eligibility
factors required to obtain severance benefits similar to those in the Release,
(c) the time limits required to obtain severance benefits similar to those in
the Release, (d) the job titles and ages of employees eligible or selected for
severance benefits similar to those in the Release, and (e) the ages of
employees in the same classification either not eligible or not selected.

15.      REVOCATION.
         ----------

                  As provided by the Older Workers Benefit Protection Act,
Executive's is entitled to have forty-five (45) days to consider this Release.
For a period of seven (7) days from execution of this Release, Executive may
revoke this Release. Upon receipt of Executive's signed Release and the end of
the revocation period, payment by Company as described in paragraph 4 above will
be forwarded by mail in a timely manner as provided herein.

<PAGE>

                                                    Dated:  __________ __, 2001
--------------------------------------------------
[Name of Executive]

STATE OF ________  )
               ) ss.
County of _________   )

         Personally appeared the above named _________________________and
acknowledged the foregoing instrument to be his or her voluntary act and deed.

                           Before me:
                                      ------------------------------------------
                                      Notary Public for
                                                        ------------------------
                                      My commission expires:
                                                             ------------

Regent Assisted Living, Inc.

By:                                                     Dated:
   --------------------------------------------------         ------------------
Its:
    -------------------------------------------------

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