Document:

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                                                                 EXHIBIT 10.51.2

                       FIRST AMENDMENT TO LEASE AGREEMENT

      THIS FIRST AMENDMENT TO LEASE AGREEMENT (this "First Amendment") is
entered into as of December 4, 2003 by and between SNH ALT LEASED PROPERTIES
TRUST, a Maryland real estate investment trust ("Landlord"), and AHC TRAILSIDE,
INC., a Delaware corporation ("Tenant").

                                   WITNESSETH:

      WHEREAS, Landlord and Tenant are parties to that certain Lease Agreement
dated as of February 28, 2003 (the "Lease"), pursuant to which Landlord leased
the Leased Property (this and other capitalized terms used herein and not
otherwise defined having the meanings ascribed to such terms in the Lease) to
Tenant and Tenant leased the Leased Property from Landlord, all as more
particularly described in the Lease; and

      WHEREAS, SNH ALT Mortgaged Properties Trust ("Lender") and Pomacy
Corporation ("Borrower") are parties to that certain Loan Agreement, dated as of
February 28, 2003 (the "Loan Agreement"), pursuant to which Lender agreed to
loan up to the principal amount of SIX MILLION NINE HUNDRED THOUSAND DOLLARS
($6,900,000) (the "Loan") to Borrower and Borrower agreed to borrow up to such
principal amount from Lender, all as more particularly described in the Loan
Agreement; and

      WHEREAS, the Lease Documents and the Loan Documents (as defined in the
Loan Agreement) are cross-defaulted and cross-collateralized; and

      WHEREAS, Landlord and Lender are both wholly-owned subsidiaries of Senior
Housing Properties Trust ("SNH"); and

      WHEREAS, Tenant and Borrower are both wholly-owned subsidiaries of Alterra
Healthcare Corporation ("Alterra"); and

      WHEREAS, Landlord, Lender, Tenant, Borrower, Alterra and FIT-ALT SNH Loan
LLC ("FIT") have entered into that certain Tri-Party Agreement of even date
herewith (the "Tri-Party Agreement") pursuant to which Lender has agreed to sell
the Loan to FIT, and FIT has agreed to purchase the Loan from Lender, all as
more particularly described in the Tri-Party Agreement; and

      WHEREAS, in connection with the transactions contemplated by the Tri-Party
Agreement, Landlord and Tenant have agreed to amend the Lease Documents to
remove all provisions related to the Borrower, the Loan Agreement and the Loan
Documents,

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including, without limitation, the provisions which cross-default and
cross-collateralize the Lease Documents with the Loan Documents;

      NOW, THEREFORE, in consideration of the foregoing and for other
consideration, the mutual receipt and legal sufficiency of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

      1. The following definitions are hereby amended by deleting such
definitions in their entirety and inserting "[INTENTIONALLY DELETED]"
immediately after the section reference in lieu thereof:

       Section 1.13  "Borrower"
       Section 1.14  "Borrower Indebtedness"
       Section 1.70  "Lender"
       Section 1.72  "Loan Agreement"
       Section 1.73  "Loan Documents"

      2. The definition of "Acquiring Guarantor" set forth in Section 1.2 of the
Lease is hereby amended by deleting the existing definition in its entirety and
inserting the following in its place:

      "Acquiring Guarantor" shall mean any successor in interest to any
      Guarantor, which shall be deemed to include, without limitation, (a) any
      Person or group of two or more Persons acting in concert (other than a
      Permitted Control Person or a group comprised exclusively of Permitted
      Control Persons), that acquire the ownership of fifty percent (50%) or
      more of the voting power of the outstanding shares of voting stock of any
      Guarantor, (b) any Person resulting from the merger or consolidation of
      any Guarantor, and (c) any Person acquiring through any one or more sales
      or conveyances all or substantially all of any Guarantor's assets
      (including its capital stock) or business.

      3. The definition of "Change in Control" set forth in Section 1.18 of the
Lease is hereby amended by deleting the existing definition in its entirety and
inserting the following in its place:

      "Change in Control" shall mean (a) the acquisition by any Person, or two
      or more Persons acting in concert, of record ownership of, or the right to
      vote, or the

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            power to direct the vote of, in excess of fifty percent (50%) of the
            voting power of the outstanding shares of voting stock of Tenant or
            any Guarantor, as the case may be, other than pursuant to a
            Permitted Merger or a Secured Merger, (b) the merger or
            consolidation of Tenant or any Guarantor with or into any other
            Person (other than a Permitted Merger, a Secured Merger or a merger
            or consolidation of any Person with or into Tenant or any Guarantor
            that does not result in a Change in Control of Tenant or such
            Guarantor under clauses (a), (c) or (d) of this definition), (c) any
            one or more sales or conveyances to any Person of all or
            substantially all of its assets (including capital stock) or
            business of Tenant or any Guarantor, as the case may be, or (d) the
            cessation, for any reason, of the individuals who, on the
            Commencement Date, constituted the board of directors of Tenant or
            any Guarantor (together with any new directors elected or appointed
            pursuant to, and on the effective date of, a Conforming Plan and any
            new directors whose election by such board or whose nomination for
            election by the shareholders of Tenant or such Guarantor, as the
            case may be, was approved by a vote of a majority of the directors
            then still in office who were either directors on the Commencement
            Date or the effective date of a Conforming Plan as aforesaid or
            whose election or nomination for election was previously so
            approved) to constitute a majority of the board of directors of
            Tenant or such Guarantor then in office; provided, however, that no
            Change in Control shall be deemed to have occurred as a result or
            arising out of: (i) any change in ownership resulting from the
            issuance of equity securities in connection with the confirmation of
            any Conforming Plan or (ii) any acquisition referred to in clause
            (a) of this definition with respect to the voting power of the
            outstanding shares of voting stock of any Parent of Tenant so long
            as such Parent is a Guarantor and at the time of such acquisition
            and immediately thereafter such Parent has a consolidated Tangible
            Net Worth at least equal to Fifty Million Dollars ($50,000,000).

      4. The definition of "Guarantor" set forth in Section 1.51 of the Lease is
hereby amended by deleting the existing definition in its entirety and inserting
the following in its place:

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            "Guarantor" shall mean Alterra and each and every other guarantor of
            Tenant's obligations under this Agreement, and each such guarantor's
            successors and assigns, and shall expressly exclude Pomacy
            Corporation to the extent that the Guaranty Agreement (Pomacy
            Corporation), dated as of February 28, 2003, given by Pomacy
            Corporation to Landlord, has been terminated.

      5. The definition of "Guaranty" set forth in Section 1.52 of the Lease is
hereby amended by deleting the existing definition in its entirety and inserting
the following in its place:

            "Guaranty" shall mean any guaranty agreement executed by a Guarantor
            in favor of Landlord pursuant to which the payment or performance of
            Tenant's obligations under this Agreement are guaranteed, together
            with all modifications, amendments and supplements thereto, but
            expressly excluding the Guaranty Agreement (Pomacy Corporation),
            dated as of February 28, 2003, given by Pomacy Corporation to
            Landlord, to the extent the same has been terminated.

      6. The definition of "Conforming Plan" set forth in Section 1.25 of the
Lease is hereby amended by deleting the phrase "the Loan Agreement and the other
Loan Documents" from subsection (a) thereof.

      7. Section 12.1 ("Events of Default") is hereby amended by:

            (a) deleting subsection (f) in its entirety and inserting
"[INTENTIONALLY DELETED]" in its place.

            (b) deleting subsection (g) in its entirety and inserting the
following in its place:

            should Tenant or any Guarantor generally not be paying its debts as
            they become due or should Tenant or any Guarantor make a general
            assignment for the benefit of creditors; provided, however that the
            failure of Alterra to generally not be paying its debts as they
            become due or the making of a general assignment by Alterra for the
            benefit of creditors shall not constitute an Event of Default
            hereunder if such failure or assignment occurs on or prior to
            January 31, 2003 or at any time during the pendency of

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            a Conforming Bankruptcy Proceeding filed on or prior to January 31,
            2003; or

            (c) deleting subsection (i) in its entirety and inserting the
following in its place:

            should Tenant or any Guarantor cause or institute any proceeding for
            its dissolution or termination; or

      8. Section 21.1 ("Prompt Payment of Indebtedness") is hereby amended by
deleting it in its entirety and inserting the following in its place:

            Prompt Payment of Indebtedness. Tenant shall (a) pay or cause to be
            paid when due all payments of principal of and premium and interest
            on Tenant's Indebtedness for money borrowed and shall not permit or
            suffer any such Indebtedness to become or remain in default beyond
            any applicable grace or cure period, (b) pay or cause to be paid
            when due all lawful claims for labor and rents with respect to the
            Leased Property, (c) pay or cause to be paid when due all trade
            payables and (d) pay or cause to be paid when due all other of
            Tenant's Indebtedness upon which it is or becomes obligated, except,
            in each case, other than that referred to in clause (a), to the
            extent payment is being contested in good faith by appropriate
            proceedings in accordance with Article 8 and if Tenant shall have
            set aside on its books adequate reserves with respect thereto in
            accordance with GAAP, if appropriate, or unless and until
            foreclosure, distraint sale or other similar proceedings shall have
            been commenced.

      9. Section 21.5 ("Indebtedness") is hereby amended by deleting subsection
(a) in its entirety and inserting "[INTENTIONALLY DELETED]" in its place.

      10. Section 21.10 ("Liens and Encumbrances") is hereby amended by deleting
subsection (d) in its entirety and inserting the following in its place:

            To secure Indebtedness permitted pursuant to Section(s) 21.5
            (b)-(e).

      11. Landlord hereby represents and warrants that there are no Facility
Mortgagees or other lenders or ground lessors arising by, through or under
Landlord holding any mortgage or

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other lien, encumbrance or interest in the Lease, the Rent payable thereunder or
in the Leased Property.

      12. Except as otherwise expressly stated (i) herein or (ii) in any
document or instrument executed and delivered in connection herewith or (iii) in
the Terms of Settlement among Alterra, FEBC-ALT Investors LLC, FEBC-ALT
Investors Inc., FEBC-ALT Holdings Inc., FEBC-ALT Acquisition Inc., Landlord and
Lender (the "Settlement") attached as Exhibit A to the Findings of Fact,
Conclusions of Law and Order under 11 U.S.C. Section 1129(a) and (b) and Fed. R.
Bankr. P. 3020 Confirming Second Amended Plan of Reorganization for Alterra
Healthcare Corporation under Chapter 11 of the Bankruptcy Code (the
"Confirmation Order"), which Confirmation Order, including Exhibit A, was
approved by the United States Bankruptcy Court for the District of Delaware on
November 26, 2003 ((i) - (iii) are hereinafter collectively referred to as the
"December 2003 Documents"), nothing in this First Amendment shall affect,
modify, release, limit or otherwise impair any rights or obligations of any of
the parties hereto under the Lease or the Lease Documents.

      13. This First Amendment shall be effective as of the Effective Date (as
such term is defined in the Tri-Party Agreement) and no sooner.

                            [SIGNATURE PAGES FOLLOW]

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      IN WITNESS WHEREOF, the parties hereto have executed this First Amendment
under seal as of the date first written above.

                                         LANDLORD:

                                         SNH ALT LEASED PROPERTIES TRUST,
                                         a Maryland real estate investment trust

                                         By: /s/ John R. Hoadley
                                             -----------------------------------
                                         Name: John R. Hoadley
                                               ---------------------------------
                                         Title: Treasurer
                                                --------------------------------

                                         TENANT:

                                         AHC TRAILSIDE, INC.,
                                         a Delaware corporation

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

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                                                                 EXHIBIT 10.52.1
                               GUARANTY AGREEMENT
                               (LANDLORD GUARANTY)

      THIS GUARANTY AGREEMENT (this "Agreement") is made and given as of
February 28, 2003 by ALTERRA HEALTHCARE CORPORATION, a Delaware corporation (the
"Guarantor"), for the benefit of SNH ALT LEASED PROPERTIES TRUST, a Maryland
real estate investment trust (together with its successors and assigns, the
"Landlord").

                              W I T N E S S E T H:

      WHEREAS, pursuant to a Purchase and Sale Agreement, dated as of the date
hereof (as amended from time to time, the "Purchase Agreement"), among
ALS-Venture II, Inc. and Wynwood of Chapel Hill, LLC (collectively, the
"Sellers") and the Landlord, the Sellers have agreed to sell to the Landlord,
and the Landlord has agreed to purchase from the Sellers, certain real property,
together with related improvements and certain personal property, as more
particularly described in the Purchase Agreement; and

      WHEREAS, pursuant to a Lease Agreement, dated as of the date hereof (as
amended from time to time, the "Lease"), between the Landlord and AHC Trailside,
Inc. (the "Tenant"), the Landlord has agreed to Lease to the Tenant, and the
Tenant has agreed to lease from the Landlord, certain real property, together
with related improvements and certain personal property, as more particularly
described in the Lease; and

      WHEREAS, the Purchase Agreement and the Lease are cross-defaulted and
cross-collateralized; and

      WHEREAS, the Sellers and the Tenant are subsidiaries, or limited liability
companies, wholly-owned by the Guarantor; and

      WHEREAS, it is a condition precedent to the Landlord's entering into the
Purchase Agreement and the Lease that the Guarantor guaranty (i) all of the
payment and performance obligations of the Sellers with respect to the Purchase
Agreement, and (ii) all of the payment and performance obligations of the Tenant
with respect to the Lease; and

      WHEREAS, the transactions contemplated by the Purchase Agreement and the
Lease are of direct material benefit to the Guarantor; and

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      NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the mutual receipt and legal sufficiency of which are
hereby acknowledged, the Guarantor hereby agrees as follows:

      1. Certain Terms. Capitalized terms used and not otherwise defined in this
Agreement shall have the meanings ascribed to such terms in the Lease.

      2. Guaranteed Obligations. For purposes of this Agreement, the term
"Guaranteed Obligations" shall mean the payment and performance of each and
every obligation of the Tenant and the Sellers to the Landlord under the Lease
Documents or relating thereto, whether now existing or hereafter arising, and
including, without limitation, the payment of the full amount of the Rent and
other charges payable under the Lease.

      3. Representations and Covenants. The Guarantor represents, warrants,
covenants, and agrees that:

            3.1 Incorporation of Representations and Warranties. The
representations and warranties of the Tenant, the Sellers and their Affiliated
Persons set forth in the Lease Documents are true and correct on and as of the
date hereof in all material respects.

            3.2 Performance of Covenants and Agreements. The Guarantor hereby
agrees to take all lawful action in its power to cause the Tenant and the
Sellers duly and punctually to perform all of the covenants and agreements set
forth in the Lease Documents.

            3.3 Validity of Agreement. The Guarantor has duly and validly
executed and delivered this Agreement; this Agreement constitutes the legal,
valid and binding obligation of the Guarantor, enforceable against the Guarantor
in accordance with its terms, except as the enforceability thereof may be
subject to bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium and other laws relating to or affecting creditors' rights generally
and subject to general equitable principles, regardless of whether
enforceability is considered in a proceeding at law or in equity; and the
execution, delivery and performance of this Agreement have been duly authorized
by all requisite action of the Guarantor and such execution, delivery and
performance by the Guarantor will not result in any breach of the terms,
conditions or provisions of, or conflict with or constitute a default under, or
result in the creation of any lien, charge or encumbrance upon any of the
property or assets of the Guarantor pursuant to the terms of,

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any indenture, mortgage, deed of trust, note, other evidence of indebtedness,
agreement or other instrument to which it may be a party or by which it or any
of its property or assets may be bound, or violate any provision of law, or any
applicable order, writ, injunction, judgment or decree of any court or any order
or other public regulation of any governmental commission, bureau or
administrative agency.

            3.4 Payment of Expenses. The Guarantor agrees, as principal obligor
and not as guarantor only, to pay to the Landlord forthwith, upon demand, in
immediately available federal funds, all costs and expenses (including
reasonable attorneys' fees and disbursements) incurred or expended by the
Landlord in connection with the enforcement of this Agreement, together with
interest on amounts recoverable under this Agreement from the time such amounts
become due until payment at the Overdue Rate. The Guarantor's covenants and
agreements set forth in this Section 3.4 shall survive the termination of this
Agreement.

            3.5 Notices. The Guarantor shall promptly give notice to the
Landlord of any event known to it which might reasonably result in a material
adverse change in its financial condition, other than the Chapter 11 case, which
has been filed by the Guarantor and is pending in Bankruptcy Court as of the
date hereof.

            3.6 Reports. The Guarantor shall promptly provide to the Landlord
each of the financial reports, certificates and other documents required of it
under the Lease Documents.

            3.7 Books and Records. The Guarantor shall at all times keep proper
books of record and account in which full, true and correct entries shall be
made of its transactions in accordance with generally accepted accounting
principles and shall set aside on its books from its earnings for each fiscal
year all such proper reserves, including reserves for depreciation, depletion,
obsolescence and amortization of its properties during such fiscal year, as
shall be required in accordance with generally accepted accounting principles,
consistently applied, in connection with its business. The Guarantor shall
permit access by the Landlord and its agents to the books and records maintained
by the Guarantor during normal business hours and upon reasonable notice.

            3.8 Taxes, Etc. The Guarantor shall pay and discharge promptly as
they become due and payable all taxes, assessments and other governmental
charges or levies imposed upon it or its income or upon any of its property,
real,

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personal or mixed, or upon any part thereof, as well as all claims of any kind
(including claims for labor, materials and supplies) which, if unpaid, might by
law become a lien or charge upon any property and result in a material adverse
change in the financial condition of the Guarantor; provided, however, that the
Guarantor shall not be required to pay any such tax, assessment, charge, levy or
claim if the amount, applicability or validity thereof shall currently be
contested in good faith by appropriate proceedings or other appropriate actions
promptly initiated and diligently conducted and if the Guarantor shall have set
aside on its books such reserves, if any, with respect thereto as are required
by generally accepted accounting principles.

            3.9 Legal Existence; Change in Control of Guarantor. The Guarantor
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its legal existence. Except as specifically permitted under the
Lease, the Guarantor shall cause any Person, as a condition of, and prior to
such Person becoming an Acquiring Guarantor, to execute this Agreement in favor
of the Landlord pursuant to which the Acquiring Guarantor shall guarantee the
payment and performance of the Guaranteed Obligations.

            3.10 Compliance. The Guarantor shall use reasonable business efforts
to comply in all material respects with all applicable statutes, rules,
regulations and orders of, and all applicable restrictions imposed by, all
governmental authorities in respect of the conduct of its business and the
ownership of its property (including, without limitation, applicable statutes,
rules, regulations, orders and restrictions relating to environmental, safety
and other similar standards or controls).

            3.11 Insurance. The Guarantor shall maintain, with financially sound
and reputable insurers, insurance with respect to its properties and business
against loss or damage with substantially similar coverages and in substantially
similar amounts as are required to be maintained by the Tenant under the Lease
(provided the Guarantor and the Tenant's insurance requirements may be satisfied
using the same insurance policy).

            3.12 Financial Statements, Etc. The financial statements previously
delivered to the Landlord by the Guarantor fairly present the financial
condition of the Guarantor in accordance with generally accepted accounting
principles consistently applied and there has been no material adverse change
from the date thereof through the date hereof, other than

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the Chapter 11 case, which has been filed by the Guarantor and is pending in
Bankruptcy Court as of the date hereof.

            3.13 No Change in Control. The Guarantor shall not permit the
occurrence of any direct or indirect Change in Control of the Tenant or the
Guarantor, except as explicitly permitted under the Lease.

      4. Guarantee. The Guarantor hereby unconditionally and irrevocably
guarantees that the Guaranteed Obligations which are monetary obligations shall
be paid in full when due and payable, whether upon demand, at the stated or
accelerated maturity thereof pursuant to any Lease Document, or otherwise, and
that the Guaranteed Obligations which are performance obligations shall be fully
performed at the times and in the manner such performance is required by the
Lease Documents. With respect to the Guaranteed Obligations which are monetary
obligations, this guarantee is a guarantee of payment and not of collectibility
and is absolute and in no way conditional or contingent. In case any part of the
Guaranteed Obligations shall not have been paid when due and payable or
performed at the time performance is required, the Guarantor shall, in the case
of monetary obligations, within five (5) days after receipt of notice from the
Landlord, pay or cause to be paid to the Landlord the amount thereof as is then
due and payable and unpaid (including interest and other charges, if any, due
thereon through the date of payment in accordance with the applicable provisions
of the Lease Documents) or, in the case of nonmonetary obligations, perform or
cause to be performed such obligations in accordance with the Lease Documents.

      5. Set-Off. The Guarantor hereby authorizes the Landlord, at any time and
without notice to set off the whole or any portion or portions of any or all
sums credited by or due from the Landlord to it against amounts payable under
this Agreement. The Landlord shall promptly notify the Guarantor of any such
set-off made by the Landlord and the application made by the Landlord of the
proceeds thereof.

      6. Unenforceability of Guaranteed Obligations, Etc. If the Tenant or
either of the Sellers is for any reason under no legal obligation to discharge
any of the Guaranteed Obligations (other than because the same have been
previously discharged in accordance with the terms of the Lease Documents), or
if any other moneys included in the Guaranteed Obligations have become
unrecoverable from the Tenant or either of the Sellers by operation of law or
for any other reason, including, without limitation, the invalidity or
irregularity in whole or in part of any Guaranteed Obligation or of any Lease
Document or any

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limitation on the liability of the Tenant or either of the Sellers thereunder
not contemplated by the Lease Documents or any limitation on the method or terms
of payment thereunder which may now or hereafter be caused or imposed in any
manner whatsoever, the guarantees contained in this Agreement shall nevertheless
remain in full force and effect and shall be binding upon the Guarantor to the
same extent as if the Guarantor at all times had been the principal debtor on
all such Guaranteed Obligations.

      7. Additional Guarantees. This Agreement shall be in addition to any other
guarantee or other security for the Guaranteed Obligations and it shall not be
prejudiced or rendered unenforceable by the invalidity of any such other
guarantee or security or by any waiver, amendment, release or modification
thereof.

      8. Consents and Waivers, Etc. The Guarantor hereby acknowledges receipt of
correct and complete copies of each of the Lease Documents, and consents to all
of the terms and provisions thereof, as the same may be from time to time
hereafter amended or changed in accordance with the terms and conditions
thereof, and, except as otherwise provided herein, to the maximum extent
permitted by applicable law, waives (a) presentment, demand for payment, and
protest of nonpayment, of any principal of or interest on any of the Guaranteed
Obligations, (b) notice of acceptance of this Agreement and of diligence,
presentment, demand and protest, (c) notice of any default hereunder and any
default, breach or nonperformance or Event of Default under any of the
Guaranteed Obligations or the Lease Documents, (d) notice of the terms, time and
place of any private or public sale of any collateral held as security for the
Guaranteed Obligations, (e) demand for performance or observance of, and any
enforcement of any provision of, or any pursuit or exhaustion of rights or
remedies against the Tenant, the Sellers or any other guarantor of the
Guaranteed Obligations, under or pursuant to the Lease Documents, or any
agreement directly or indirectly relating thereto and any requirements of
diligence or promptness on the part of the holders of the Guaranteed Obligations
in connection therewith, and (f) to the extent it lawfully may do so, any and
all demands and notices of every kind and description with respect to the
foregoing or which may be required to be given by any statute or rule of law and
any defense of any kind which it may now or hereafter have with respect to this
Agreement, or any of the Lease Documents or the Guaranteed Obligations (other
than that the same have been discharged in accordance with the Lease Documents).

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      9. No Impairment, Etc. The obligations, covenants, agreements and duties
of the Guarantor under this Agreement shall not be affected or impaired by any
assignment or transfer in whole or in part of any of the Guaranteed Obligations
without notice to the Guarantor, or any waiver by the Landlord or any holder of
any of the Guaranteed Obligations or by the holders of all of the Guaranteed
Obligations of the performance or observance by the Tenant, the Sellers or any
other guarantor of any of the agreements, covenants, terms or conditions
contained in the Guaranteed Obligations or the Lease Documents or any indulgence
in or the extension of the time for payment by the Tenant, the Sellers or any
other guarantor of any amounts payable under or in connection with the
Guaranteed Obligations or the Lease Documents or any other instrument or
agreement relating to the Guaranteed Obligations or of the time for performance
by the Tenant, the Sellers or any other guarantor of any other obligations under
or arising out of any of the foregoing or the extension or renewal thereof
(except that with respect to any extension of time for payment or performance of
any of the Guaranteed Obligations granted by the Landlord or any other holder of
such Guaranteed Obligations to the Tenant or the Sellers, the Guarantor's
obligations to pay or perform such Guaranteed Obligation shall be subject to the
same extension of time for performance), or the modification or amendment
(whether material or otherwise) of any duty, agreement or obligation of the
Tenant, the Sellers or any other guarantor set forth in any of the foregoing, or
the voluntary or involuntary sale or other disposition of all or substantially
all the assets of the Tenant, either of the Sellers or any other guarantor or
insolvency, bankruptcy, or other similar proceedings affecting the Tenant,
either of the Sellers or any other guarantor or any assets of the Tenant, either
of the Sellers or any such other guarantor, or the release or discharge of the
Tenant, either of the Sellers or any such other guarantor from the performance
or observance of any agreement, covenant, term or condition contained in any of
the foregoing without the consent of the holders of the Guaranteed Obligations
by operation of law, or any other cause, whether similar or dissimilar to the
foregoing.

      10. Bankruptcy Considerations. The provisions of this Agreement have been
approved by the Bankruptcy Court overseeing the Chapter 11 case of the
Guarantor. The obligations of the Guarantor and the Landlord shall not be
limited, modified or otherwise relieved by any proceedings or orders entered in
the Guarantor's bankruptcy case. The Landlord shall be entitled to take all
actions it deems appropriate in order that it may exercise its rights and
remedies as provided herein without further relief from the Bankruptcy Court so
long as the Landlord

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shall provide the Guarantor with at least five (5) Business Days' written notice
of its intention to take any such action, unless the Bankruptcy Court enters an
order restricting such action. Except as limited by the foregoing, the Guarantor
and the Landlord shall retain their respective rights and remedies as provided
in this Agreement.

      11. Reimbursement, Subrogation, Etc. The Guarantor hereby covenants and
agrees that it will not enforce or otherwise exercise any rights of
reimbursement, subrogation, contribution or other similar rights against the
Tenant or either of the Sellers (or any other person against whom the Landlord
may proceed) with respect to the Guaranteed Obligations prior to the payment in
full of all amounts owing with respect to the Lease Documents, and until all
indebtedness of the Tenant and the Sellers to the Landlord shall have been paid
in full, the Guarantor shall not have any right of subrogation, and the
Guarantor waives any defense it may have based upon any election of remedies by
the Landlord which destroys its subrogation rights or its rights to proceed
against the Tenant or either of the Sellers for reimbursement, including,
without limitation, any loss of rights the Guarantor may suffer by reason of any
rights, powers or remedies of the Tenant or either of the Sellers in connection
with any anti-deficiency laws or any other laws limiting, qualifying or
discharging the indebtedness to the Landlord. Until all obligations of the
Tenant and the Sellers pursuant to the Lease Documents shall have been paid and
satisfied in full, the Guarantor further waives any right to enforce any remedy
which the Landlord now has or may in the future have against the Tenant, the
Sellers, any other guarantor or any other person and any benefit of, or any
right to participate in, any security whatsoever now or in the future held by
the Landlord.

      12. Defeasance. This Agreement shall terminate at such time as the
Guaranteed Obligations have been paid and performed in full and all other
obligations of the Guarantor to the Landlord under this Agreement have been
satisfied in full; provided, however, if at any time, all or any part of any
payment applied on account of the Guaranteed Obligations is or must be rescinded
or returned for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of the Tenant or either of the
Sellers), this Agreement, to the extent such payment is or must be rescinded or
returned, shall be deemed to have continued in existence notwithstanding any
such termination.

      13. Notices. (a) Any and all notices, demands, consents, approvals,
offers, elections and other communications required

                                     - 8 -
<PAGE>

or permitted under this Agreement shall be deemed adequately given if in writing
and the same shall be delivered either (i) in hand, (ii) by telecopier with
electronic confirmation of receipt (provided a conforming copy is immediately
delivered by hand or by Federal Express or a similar expedited commercial
carrier), or (iii) by mail or Federal Express or similar expedited commercial
carrier, addressed to the recipient of the notice, postpaid and registered or
certified with return receipt requested (if by mail), or with all freight
charges prepaid (if by Federal Express or similar carrier).

      (b) All notices required or permitted to be sent hereunder shall be deemed
to have been given for all purposes of this Agreement upon the date of
acknowledged receipt, in the case of a notice by telecopier, and, in all other
cases, upon the date of receipt or refusal, except that whenever under this
Agreement a notice is either received on a day which is not a Business Day or is
required to be delivered on or before a specific day which is not a Business
Day, the day of receipt or required delivery shall automatically be extended to
the next Business Day.

      (c) All such notices shall be addressed,

      if to the Landlord to:

          c/o Senior Housing Properties Trust
          400 Centre Street
          Newton, Massachusetts  02458
          Attn:  Mr. David J. Hegarty
          [Telecopier No. (617) 796-8349]

      with a copy to:

          Sullivan & Worcester LLP
          One Post Office Square
          Boston, Massachusetts  02109
          Attn:  Nancy S. Grodberg, Esq.
          [Telecopier No. (617) 338-2880]

      if to the Guarantor to:

          Alterra Healthcare Corporation
          10000 Innovation Drive
          Milwaukee, WI  53226
          Attn:  Mr. Mark W. Ohlendorf
          [Telecopier No. (414) 918-5050]

                                     - 9 -
<PAGE>

      with a copy to:

          Rogers & Hardin LLP
          229 Peachtree Street, N.E.
          Suite 2700
          Atlanta, GA 30303-1601
          Attn:  Miriam J. Dent, Esq.
          [Telecopier No. (404) 525-2224]

      (d) By notice given as herein provided, the parties hereto and their
respective successors and assigns shall have the right from time to time and at
any time during the term of this Agreement to change their respective addresses
effective upon receipt by the other parties of such notice and each shall have
the right to specify as its address any other address within the United States
of America.

      14. Successors and Assigns. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors
and assigns of such party, including without limitation the holders, from time
to time, of the Guaranteed Obligations; and all representations, warranties,
covenants and agreements by or on behalf of the Guarantor which are contained in
this Agreement shall inure to the benefit of the Landlord's successors and
assigns, including without limitation said holders, whether so expressed or not.

      15. Applicable Law. Except as to matters regarding the internal affairs of
the Landlord and issues of or limitations on any personal liability of the
shareholders and trustees of the Landlord for obligations of the Landlord, as to
which the laws of the State of Maryland shall govern, this Agreement, the Lease
Documents and any other instruments executed and delivered to evidence, complete
or perfect the transactions contemplated hereby and thereby shall be
interpreted, construed, applied and enforced in accordance with the laws of The
Commonwealth of Massachusetts applicable to contracts between residents of
Massachusetts which are to be performed entirely within Massachusetts,
regardless of (i) where any such instrument is executed or delivered; or (ii)
where any payment or other performance required by any such instrument is made
or required to be made; or (iii) where any breach of any provision of any such
instrument occurs, or any cause of action otherwise accrues; or (iv) where any
action or other proceeding is instituted or pending; or (v) the nationality,
citizenship, domicile, principal place of business, or jurisdiction of
organization or domestication of any party; or (vi) whether the laws of the
forum jurisdiction otherwise would apply the laws of

                                     - 10 -
<PAGE>

a jurisdiction other than The Commonwealth of Massachusetts; or (vii) any
combination of the foregoing.

      16. Modification of Agreement. No modification or waiver of any provision
of this Agreement, nor any consent to any departure by the Guarantor therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Landlord, and such modification, waiver or consent shall be effective
only in the specific instances and for the purpose for which given. No notice to
or demand on the Guarantor in any case shall entitle the Guarantor to any other
or further notice or demand in the same, similar or other circumstances. This
Agreement may not be amended except by an instrument in writing executed by or
on behalf of the party against whom enforcement of such amendment is sought.

      17. Waiver of Rights by the Landlord. Neither any failure nor any delay on
the Landlord's part in exercising any right, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise or the exercise of any
other right, power or privilege.

      18. Severability. In case any one or more of the provisions contained in
this Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby, but this Agreement
shall be reformed and construed and enforced to the maximum extent permitted by
applicable law.

      19. Entire Contract. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and shall
supersede and take the place of any other instruments purporting to be an
agreement of the parties hereto relating to the subject matter hereof.

      20. Headings; Counterparts. Headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof. This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument, and in
pleading or proving any provision of this Agreement, it shall not be necessary
to produce more than one of such counterparts.

      21. Remedies Cumulative. No remedy herein conferred upon the Landlord is
intended to be exclusive of any other remedy, and each and every remedy shall be
cumulative and shall be in

                                     - 11 -
<PAGE>

addition to every other remedy given hereunder or now or hereafter existing at
law or in equity or by statute or otherwise.

      22. NON-LIABILITY OF TRUSTEES. THE DECLARATION OF TRUST ESTABLISHING THE
LANDLORD, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS THERETO (THE
"DECLARATION"), IS DULY FILED WITH THE DEPARTMENT OF ASSESSMENTS AND TAXATION OF
THE STATE OF MARYLAND, PROVIDES THAT THE NAME "SNH ALT LEASED PROPERTIES TRUST"
REFERS TO THE TRUSTEES UNDER THE DECLARATION COLLECTIVELY AS TRUSTEES, BUT NOT
INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE
OR AGENT OF THE LANDLORD SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR
SEVERALLY, FOR ANY OBLIGATION OF OR CLAIM AGAINST, THE LANDLORD. ALL PERSONS
DEALING WITH THE LANDLORD, IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF THE
LANDLORD FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                     - 12 -
<PAGE>

      IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly
executed under seal as of the date first above written.

                                         ALTERRA HEALTHCARE CORPORATION,
                                         a Delaware corporation

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

                                     - 13 -

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