Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.2    
  

Registration Rights Agreement  

 Dated as of August 22, 2001  

 among  

 Park Place Entertainment Corporation  

 and  

 Credit Suisse First Boston Corporation

Banc of America Securities LLC

Deutsche Banc Alex. Brown Inc.

Dresdner Kleinwort Wasserstein—Grantchester, Inc.

Scotia Capital (USA) Inc.

BNY Capital Markets, Inc.

Commerzbank Capital Markets Corporation

First Union Securities, Inc.

Fleet Securities, Inc.

S.G. Cowen Securities Corporation

Wells Fargo Brokerage Services, LLC  

 
 

REGISTRATION RIGHTS AGREEMENT    
  

    This Registration Rights Agreement (the "Agreement") is made and entered into this 22nd day of August, 2001, among Park Place Entertainment Corporation, a
Delaware corporation (the "Company"), and Credit Suisse First Boston Corporation ("CSFBC") and each of the other Initial Purchasers named in Schedule A to the Purchase Agreement (as defined
below) (collectively, the "Initial Purchasers," which term shall also include any initial purchaser substituted as provided in Section 11 thereof). 

    This
Agreement is made pursuant to the Purchase Agreement, dated August 15, 2001, among the Company and the Initial Purchasers (the "Purchase Agreement"), which provides for
the sale by the Company to the Initial Purchasers of an aggregate of $425,000,000 principal amount of the Company's 7.50% Series A Senior Notes due 2009 (the "Securities"). In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to provide to Holders (as defined herein) the registration rights set forth in this Agreement. The execution of this
Agreement is a condition to the closing under the Purchase Agreement. 

    In
consideration of the foregoing, the parties hereto agree as follows: 

    1.  Definitions.

    As
used in this Agreement, the following capitalized defined terms shall have the following meanings: 

    "1933 Act" shall mean the Securities Act of 1933, as amended from time to time. 

    "1934 Act" shall mean the Securities Exchange Act of 1934, as amended from time to time. 

    "Closing Date" shall mean the Closing Time as defined in the Purchase Agreement. 

    "Company" shall have the meaning set forth in the preamble and shall also include the Company's successors. 

    "Depositary" shall mean The Depository Trust Company, or any other depositary appointed by the Company,  provided, however, that such depositary must have an address in
the Borough of Manhattan, in the City of New York. 

    "Exchange Offer" shall mean the exchange offer by the Company of Exchange Securities for Registrable Securities pursuant to
Section 2.1 hereof. 

    "Exchange Offer Registration" shall mean a registration under the 1933 Act effected pursuant to Section 2.1 hereof. 

    "Exchange Offer Registration Statement" shall mean an exchange offer registration statement on Form S-4 (or, if
applicable, on another appropriate form), and all amendments and supplements to such registration statement, including the Prospectus contained therein, all exhibits thereto and all documents
incorporated by reference therein. 

    "Exchange Period" shall have the meaning set forth in Section 2.1 hereof. 

    "Exchange Securities" shall mean the 7.50% Series B Senior Notes due 2009 issued by the Company under the Indenture, which will
be freely tradeable under the 1933 Act, containing terms identical to the Securities in all material respects (except for references to certain interest rate provisions, restrictions on transfers and
restrictive legends). The Exchange Securities will be offered to Holders of Securities in exchange for Registrable Securities pursuant to the Exchange Offer and the Exchange Offer Registration
Statement. 

    "Holder" shall mean any registered holder of Registrable Securities. 

    "Indenture" shall mean the Indenture relating to the Securities, dated as of August   , 2001 between the Company and
Wells Fargo Bank Minnesota, National Association, as trustee, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms thereof. 

 

    "Initial Purchaser" or "Initial Purchasers" shall have the meaning set forth in the
preamble. 

    "Majority Holders" shall mean the Holders of a majority of the aggregate principal amount of Outstanding (as defined in the Indenture)
Registrable Securities. 

    "Participating Broker-Dealer" shall mean any of CSFBC, Banc of America Securities LLC, Deutsche Banc Alex. Brown Inc., Dresdner
Kleinwort Wasserstein—Grantchester, Inc., Scotia Capital (USA) Inc., BNY Capital Markets, Inc., Commerzbank Capital Markets Corporation, First Union
Securities, Inc., Fleet Securities, Inc., S.G. Cowen Securities Corporation and Wells Fargo Brokerage Services, LLC, and any other broker-dealer which makes a market in the Securities
and exchanges Registrable Securities in the Exchange Offer for Exchange Securities. 

    "Person" shall mean an individual, partnership (general or limited), corporation, limited liability company, trust or unincorporated
organization, or a government or agency or political subdivision thereof. 

    "Private Exchange" shall have the meaning set forth in Section 2.1 hereof. 

    "Private Exchange Securities" shall have the meaning set forth in Section 2.1 hereof. 

    "Prospectus" shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities
covered by a Shelf Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all material
incorporated by reference therein. 

    "Purchase Agreement" shall have the meaning set forth in the preamble. 

    "Registrable Securities" shall mean the Securities and, if issued, the Private Exchange Securities; provided,
however, that Securities and, if issued, the Private Exchange Securities, shall cease to be Registrable Securities when (i) a Registration Statement with respect to such
Securities shall have been declared effective under the 1933 Act and such Securities shall have been disposed of pursuant to such Registration Statement, (ii) such Securities have been sold to
the public pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A) under the 1933 Act, (iii) such Securities shall have
ceased to be outstanding or (iv) the Exchange Offer is consummated (except with respect to Securities purchased from the Company and continued to be held by the Initial Purchasers). 

    "Registration Expenses" shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement,
including without limitation: (i) all SEC, stock exchange or National Association of Securities Dealers, Inc. (the "NASD") registration and filing fees, including, if applicable, the
fees and expenses of any "qualified independent underwriter" (and its counsel) that is required to be retained by any Holder in accordance with the rules and regulations of the NASD, (ii) all
fees and expenses incurred in connection with compliance with state securities or blue sky laws and compliance with the rules of the NASD (including reasonable fees and disbursements of counsel for
any underwriters or Holders in connection with blue sky qualification of any of the Exchange Securities or Registrable Securities and any filings with the NASD), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any amendments or supplements thereto, any underwriting
agreements, securities sales agreements and other documents relating to the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in connection with the
listing, if any, of any of the Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees, (vi) the fees and disbursements of counsel for the Company and
of the independent public accountants of the Company, including the expenses of any special audits or "cold comfort" letters required by or incident to such performance and compliance,
(vii) the fees and expenses of the Trustee, and any escrow agent 

2

 

or custodian, (viii) the reasonable fees and expenses of one firm of attorneys (in addition to any local counsel, if any) to the Initial Purchasers and the Holders in connection therewith, and
(ix) any fees and disbursements of the underwriters customarily required to be paid by issuers or sellers of securities and the fees and expenses of any special experts retained by the Company
in connection with any Registration Statement, but excluding underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a
Holder. 

    "Registration Statement" shall mean any registration statement of the Company which covers any of the Exchange Securities or
Registrable Securities pursuant to the provisions of this Agreement, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 

    "SEC" shall mean the Securities and Exchange Commission or any successor agency or government body performing the functions currently
performed by the United States Securities and Exchange Commission. 

    "Shelf Registration" shall mean a registration effected pursuant to Section 2.2 hereof. 

    "Shelf Registration Statement" shall mean a "shelf" registration statement of the Company pursuant to the provisions of
Section 2.2 of this Agreement which covers all of the Registrable Securities or all of the Private Exchange Securities on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein. 

    "Trustee" shall mean the trustee with respect to the Securities under the Indenture. 

    2.  Registration Under the 1933 Act.

    2.1.  Exchange Offer.  The Company shall, for the benefit of the Holders, at the Company's cost,
(i) prepare and, as soon as practicable but not later than 30 days following the Closing Date, file with the SEC an Exchange Offer Registration Statement on an appropriate form under the
1933 Act with respect to a proposed Exchange Offer and the issuance and delivery to the Holders, in exchange for the Registrable Securities (other than Private Exchange Securities), of a like
principal amount of Exchange Securities, (ii) use its best efforts to cause the Exchange Offer Registration Statement to be declared effective under the 1933 Act within 90 days of the
Closing Date, (iii) use its best efforts to keep the Exchange Offer Registration Statement effective until the closing of the Exchange Offer and (iv) use its best efforts to cause the
Exchange Offer to be consummated not later than 150 days following the Closing Date. The Exchange Securities will be issued under the Indenture. Upon the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Exchange Offer, it being the objective of such Exchange Offer to enable each Holder eligible and electing to exchange Registrable
Securities for Exchange Securities (assuming that such Holder (i) is not an affiliate of the Company within the meaning of Rule 405 under the 1933 Act, (ii) is not a broker-dealer
tendering Registrable Securities acquired directly from the Company for its own account, (iii) acquired the Exchange Securities in the ordinary course of such Holder's business and
(iv) has no arrangements or understandings with any Person to participate in the Exchange Offer for the purpose of distributing the Exchange Securities) to transfer such Exchange Securities
from and after their receipt without any limitations or restrictions under the 1933 Act and under state securities or blue sky laws. 

    In
connection with the Exchange Offer, the Company shall: 

    (a) mail
as promptly as practicable to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents; 

3

 

    (b) keep the Exchange Offer open for acceptance for a period of not less than 30 calendar days after the date notice thereof is mailed to the Holders (or longer if
required by applicable law) (such period referred to herein as the "Exchange Period"); 

    (c) utilize
the services of the Depositary for the Exchange Offer; 

    (d) permit
Holders to withdraw tendered Registrable Securities at any time prior to 5:00 p.m. (Eastern Time), on the last business day of the Exchange Period, by
sending to the institution specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered
for exchange, and a statement that such Holder is withdrawing such Holder's election to have such Securities exchanged; 

    (e) notify
each Holder that any Registrable Security not tendered will remain outstanding and continue to accrue interest, but will not retain any rights under this
Agreement (except in the case of the Initial Purchasers and Participating Broker-Dealers as provided herein); and 

    (f)  otherwise
comply in all respects with all applicable laws relating to the Exchange Offer. 

    If,
upon consummation of the Exchange Offer, the Initial Purchasers hold any Securities acquired by them and having the status of an unsold allotment in the initial distribution, the
Company upon the request of any Initial Purchaser shall, simultaneously with the delivery of the Exchange Securities in the Exchange Offer, issue and deliver to such Initial Purchaser in exchange (the
"Private Exchange") for the Securities held by such Initial Purchaser, a like principal amount of debt securities of the Company that are identical in all material respects (except that such
securities shall bear appropriate transfer restrictions) to the Exchange Securities (the "Private Exchange Securities"). 

    The
Exchange Securities and the Private Exchange Securities shall be issued under (i) the Indenture or (ii) an indenture identical in all material respects to the
Indenture and which, in either case, has been qualified under the Trust Indenture Act of 1939, as amended (the "TIA"), or is exempt from such qualification, and shall provide that the Exchange
Securities shall not be subject to the transfer restrictions set forth in the Indenture but that the Private Exchange Securities shall be subject to such transfer restrictions. The Indenture or such
indenture shall provide that the Exchange Securities, the Private Exchange Securities and the Securities shall vote and consent together on all matters as one class and that none of the Exchange
Securities, the Private Exchange Securities or the Securities will have the right to vote or consent as a separate class on any matter. The Private Exchange Securities shall be of the same series as,
and the Company shall use all commercially reasonable efforts to have the Private Exchange Securities bear the same CUSIP number as, the Exchange Securities. The Company shall not have any liability
under this Agreement solely as a result of such Private Exchange Securities not bearing the same CUSIP number as the Exchange Securities. 

    As
soon as practicable after the close of the Exchange Offer and/or the Private Exchange, as the case may be, the Company shall: 

    (a) accept
for exchange all Registrable Securities duly tendered and not validly withdrawn pursuant to the Exchange Offer in accordance with the terms of the Exchange
Offer Registration Statement and the letter of transmittal which shall be an exhibit thereto; 

    (b) accept
for exchange all Securities properly tendered pursuant to the Private Exchange; 

    (c) deliver
to the Trustee for cancellation all Registrable Securities so accepted for exchange; and 

    (d) cause
the Trustee promptly to authenticate and deliver Exchange Securities or Private Exchange Securities, as the case may be, to each Holder of Registrable
Securities so accepted for exchange in a principal amount equal to the principal amount of the Registrable Securities of such Holder so accepted for exchange. 

4

 

    Interest
on each Exchange Security and Private Exchange Security will accrue from the last date on which interest was paid on the Registrable Securities surrendered in exchange
therefor or, if no interest has been paid on the Registrable Securities, from the date of original issuance. The Exchange Offer and the Private Exchange shall not be subject to any conditions, other
than (i) that the Exchange Offer or the Private Exchange, or the making of any exchange by a Holder, does not violate applicable law or any applicable interpretation of the staff of the SEC,
(ii) the due tendering of Registrable Securities in accordance with the Exchange Offer and the Private Exchange, (iii) that each Holder of Registrable Securities exchanged in the
Exchange Offer shall have represented that all Exchange Securities to be received by it shall be acquired in the ordinary course of its business and that at the time of the consummation of the
Exchange Offer it shall have no arrangement or understanding with any person to participate in the distribution (within the meaning of the 1933 Act) of the Exchange Securities and shall have made such
other representations as may be reasonably necessary under applicable SEC rules, regulations or interpretations to render the use of Form S-4 or other appropriate form under the
1933 Act available and (iv) that no action or proceeding shall have been instituted or threatened in any court or by or before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Company's judgment, would reasonably be expected to impair the ability of the Company to proceed with the Exchange Offer or the Private Exchange. The Company shall
inform the Initial Purchasers of the names and addresses of the Holders to whom the Exchange Offer is made, and the Initial Purchasers shall have the right to contact such Holders and otherwise
facilitate the tender of Registrable Securities in the Exchange Offer. 

    2.2.  Shelf Registration.  (i) If, because of any changes in law, SEC rules or regulations or
applicable interpretations thereof by the staff of the SEC, the Company is not permitted to effect the Exchange Offer as contemplated by Section 2.1 hereof, (ii) if for any other reason
the Exchange Offer is not consummated within 150 days after the original issue of the Registrable Securities, (iii) upon the request of any of the Initial Purchasers if any such Initial
Purchaser holds Securities acquired as part of an unsold allotment or (iv) if a Holder is not permitted to participate in the Exchange Offer or does not receive fully tradeable Exchange
Securities pursuant to the Exchange Offer, then in case of each of clauses (i) through (iv) the Company shall, at its cost: 

    (a) As
promptly as practicable, file with the SEC, and thereafter shall use its best efforts to cause to be declared effective as promptly as practicable but no later
than 90 days after the original issue of the Registrable Securities, a Shelf Registration Statement relating to the offer and sale of the Registrable Securities by the Holders from time to time
in accordance with the methods of distribution elected by the Majority Holders participating in the Shelf Registration and set forth in such Shelf Registration Statement. 

    (b) Use
its best efforts to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus forming part thereof to be usable by Holders
for a period of two years from the date the Shelf Registration Statement is declared effective by the SEC (or until one year from the date of the Shelf Registration Statement if such Shelf
Registration Statement is filed at the request of any Initial Purchaser), or for such shorter period that will terminate when all Registrable Securities covered by the Shelf Registration Statement
have been sold pursuant to the Shelf Registration Statement or cease to be outstanding or otherwise to be Registrable Securities (the "Effectiveness Period"); provided,
however, that the Effectiveness Period in respect of the Shelf Registration Statement shall be extended to the extent required to permit dealers to comply with the applicable
prospectus delivery requirements of Rule 174 under the 1933 Act and as otherwise provided herein. 

    (c) Notwithstanding
any other provisions hereof, use its best efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto and any
Prospectus forming part thereof and any supplement thereto complies in all material respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration Statement
and any amendment thereto does not, 

5

 

when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and
(iii) any Prospectus forming part of any Shelf Registration Statement, and any supplement to such Prospectus (as amended or supplemented from time to time), does not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they were made, not misleading. 

    The
Company shall not permit any securities other than Registrable Securities to be included in the Shelf Registration Statement. The Company further agrees, if necessary, to
supplement or amend the Shelf Registration Statement, as required by Section 3(b) below, and to furnish to the Holders copies of any such supplement or amendment promptly after its being used
or filed with the SEC. 

    2.3.  Expenses.  The Company shall pay all Registration Expenses in connection with the registration
pursuant to Section 2.1 or 2.2. Each Holder shall pay all underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of such Holder's Registrable
Securities pursuant to the Shelf Registration Statement. 

    2.4.  Effectiveness.  (a) The Company will be deemed not to have used its best efforts to cause
the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case may be, to become, or to remain, effective during the requisite period if the Company voluntarily takes any
action that would, or omits to take any action which omission would, result in any such Registration Statement not being declared effective or in the Holders covered thereby not being able to exchange
or offer and sell such Registrable Securities during that period as and to the extent contemplated hereby, unless such action is required by applicable law. 

    (b) An
Exchange Offer Registration Statement pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant to Section 2.2 hereof will not be
deemed to have become effective unless it has been declared effective by the SEC; provided, however, that if, after it has been declared effective, the
offering of Registrable Securities pursuant to an Exchange Offer Registration Statement or a Shelf Registration Statement is interfered with by any stop order, injunction or other order or requirement
of the SEC or any other governmental agency or court, such Registration Statement will be deemed not to have become effective during the period of such interference, until the offering of Registrable
Securities pursuant to such Registration Statement may legally resume. 

    2.5.  Interest.  The Indenture executed in connection with the Securities will provide that in the event
that either (i) the Exchange Offer Registration Statement is not filed with the SEC on or prior to the 30th calendar day following the date of original issue of the Securities, (ii) the
Exchange Offer Registration Statement has not been declared effective on or prior to the 120th calendar day following the date of original issue of the Securities or (iii) the Exchange Offer is
not consummated or, in case of the clauses (i) through (iv) of Section 2.2, a Shelf Registration Statement is not declared effective, in either case, on or prior to the 150th
calendar day following the date of original issue of the Securities (each such event referred to in clauses (i) through (iii) above, a "Registration Default"), the interest rate borne by
the Securities shall be increased ("Additional Interest") by 0.25% per annum upon the occurrence of a Registration Default, which rate will increase by 0.25% each 90-day period that such
Additional Interest continues to accrue under any such circumstance, provided that the maximum aggregate increase in the interest rate will in no event exceed one percent (1%) per annum. Following the
cure of all Registration Defaults (i.e., in the case of (i) above, the filing of the Exchange Offer Registration Statement, in the case of (ii) above, the effectiveness of the Exchange
Offer Registration Statement and, in the case of (iii) above, upon the consummation of the Exchange Offer or the effectiveness of the Shelf Registration Statement, as the case may be) the
accrual of Additional Interest will cease and the interest rate will revert to the original rate. 

6

 
    If the Shelf Registration Statement is unusable by the Holders for any reason, and the aggregate number of days in any consecutive twelve-month period for which the Shelf Registration
Statement shall not be usable exceeds 60 days in the aggregate, then the interest rate borne by the Securities will be increased by an absolute amount of 0.25% per annum of the principal amount
of the Securities for the first 90-day period (or portion thereof) beginning on the 60th day that such Shelf Registration Statement ceases to be usable, which rate shall be increased by an
additional absolute amount of 0.25% per annum of the principal amount of the Securities at the beginning of each subsequent 90-day period, provided that the maximum aggregate increase in
the interest rate will in no event exceed one percent (1%) per annum. Any amounts payable under this paragraph shall also be deemed "Additional Interest" for purposes of this Agreement. Upon the Shelf
Registration Statement once again becoming usable, the interest rate borne by the Securities will be reduced to the original interest rate if and when the Company is otherwise in compliance with this
Agreement at such time. Additional Interest shall be computed based on the actual number of days elapsed in each 90-day period in which the Shelf Registration Statement is unusable. 

    The
Company shall notify the Trustee within three business days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an
"Event Date"). Additional Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders, on or before the applicable semiannual interest payment date, immediately
available funds in sums sufficient to pay the Additional Interest then due. The Additional Interest due shall be payable on each interest payment date to the Holder of Securities entitled to receive
the interest payment to be paid on such date as set forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue from and including the day following the applicable
Event Date. 

    3.  Registration Procedures.  

    In
connection with the obligations of the Company with respect to Registration Statements pursuant to Sections 2.1 and 2.2 hereof, the Company shall: 

    (a) prepare
and file with the SEC a Registration Statement, within the relevant time period specified in Section 2, on the appropriate form under the 1933 Act,
which form (i) shall be selected by the Company, (ii) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the selling Holders thereof,
(iii) shall comply as to form in all material respects with the requirements of the applicable form and include or incorporate by reference all financial statements required by the SEC to be
filed therewith or incorporated by reference therein, and (iv) shall comply in all respects with the requirements of Regulation S-T under the 1933 Act, and use its best
efforts to cause such Registration Statement to become effective and remain effective in accordance with Section 2 hereof; 

    (b) prepare
and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary under applicable law to
keep such Registration Statement effective for the applicable period; and cause each Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provision then in force) under the 1933 Act and comply with the provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable to them
with respect to the disposition of all securities covered by each Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the selling
Holders thereof (including sales by any Participating Broker-Dealer); 

    (c) in
the case of a Shelf Registration, (i) notify each Holder of Registrable Securities, at least three business days prior to filing, that a Shelf
Registration Statement with respect to the Registrable Securities is being filed and advising such Holders that the distribution of Registrable Securities will be made in accordance with the method
selected by the Majority Holders participating in the Shelf Registration; (ii) furnish to each Holder of Registrable Securities and to 

7

 

each underwriter of an underwritten offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto and such other documents as such Holder or underwriter may reasonably request, including financial statements and schedules and, if the Holder so requests, all exhibits in order to
facilitate the public sale or other disposition of the Registrable Securities; and (iii) hereby consent to the use of the Prospectus or any amendment or supplement thereto by each of the
selling Holders in connection with the offering and sale of the Registrable Securities covered by the Prospectus or any amendment or supplement thereto; 

    (d) use
its best efforts to register or qualify the Registrable Securities under all applicable state securities or "blue sky" laws of such jurisdictions as any Holder
of Registrable Securities covered by a Registration Statement and each underwriter of an underwritten offering of Registrable Securities shall reasonably request by the time the applicable
Registration Statement is declared effective by the SEC, and do any and all other acts and things which may be reasonably necessary or advisable to enable each such Holder and underwriter to
consummate the disposition in each such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that the Company shall not
be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), or
(ii) take any action which would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject; 

    (e) notify
promptly each Holder of Registrable Securities under a Shelf Registration or any Participating Broker-Dealer who has notified the Company that it is
utilizing the Exchange Offer Registration Statement as provided in paragraph (f) below and, if requested by such Holder or Participating Broker-Dealer, confirm such advice in writing promptly
(i) when a Registration Statement has become effective and when any post-effective amendments and supplements thereto become effective, (ii) of any request
by the SEC or any state securities authority for post-effective amendments and supplements to a Registration Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation
of any proceedings for that purpose, (iv) in the case of a Shelf Registration, if, between the effective date of a Registration Statement and the closing of any sale of Registrable Securities
covered thereby, the representations and warranties of the Company contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to the offering
cease to be true and correct in all material respects, (v) of the happening of any event or the discovery of any facts during the period a Shelf Registration Statement is effective which makes
any statement made in such Registration Statement or the related Prospectus untrue in any material respect or which requires the making of any changes in such Registration Statement or Prospectus in
order to make the statements therein not misleading, (vi) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities or
the Exchange Securities, as the case may be, for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose and (vii) of any determination by the Company that
a post-effective amendment to such Registration Statement would be appropriate; 

    (f)  (i) in
the case of the Exchange Offer Registration Statement (A) include in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution" which section shall be reasonably acceptable to CSFBC on behalf of the Participating Broker-Dealers, and which shall contain a summary statement of the positions taken or policies made
by the staff of the SEC with respect to the potential "underwriter" status of any broker-dealer that holds Registrable Securities acquired for its own account as a result of market-making activities
or other trading activities and that will be the beneficial owner (as defined in Rule 13d-3 under the 1934 Act) of Exchange 

8

 

Securities to be received by such broker-dealer in the Exchange Offer, whether such positions or policies have been publicly disseminated by the staff of the SEC or such positions or policies, in the
reasonable judgment of CSFBC on behalf of the Participating Broker-Dealers and its counsel, represent the prevailing views of the staff of the SEC, including a statement that any such broker-dealer
who receives Exchange Securities for Registrable Securities pursuant to the Exchange Offer may be deemed a statutory underwriter and must deliver a prospectus meeting the requirements of the 1933 Act
in connection with any resale of such Exchange Securities, (B) furnish to each Participating Broker-Dealer who has delivered to the Company the notice referred to in Section 3(e),
without charge, as many copies of each Prospectus included in the Exchange Offer Registration Statement, including any preliminary prospectus, and any amendment or supplement thereto, as such
Participating Broker-Dealer may reasonably request, (C) hereby consent to the use of the Prospectus forming part of the Exchange Offer Registration Statement or any amendment or supplement
thereto, by any Person subject to the prospectus delivery requirements of the SEC, including all Participating Broker-Dealers, in connection with the sale or transfer of the Exchange Securities
covered by the Prospectus or any amendment or supplement thereto, and (D) include in the transmittal letter or similar documentation to be executed by an exchange offeree in order to
participate in the Exchange Offer (x) the following provision: 

    "If
the exchange offeree is a broker-dealer holding Registrable Securities acquired for its own account as a result of market-making activities or other trading activities, it will
deliver a prospectus meeting
the requirements of the 1933 Act in connection with any resale of Exchange Securities received in respect of such Registrable Securities pursuant to the Exchange Offer;" 

    and
(y) a statement to the effect that by a broker-dealer making the acknowledgment described in clause (x) and by delivering a Prospectus in connection with the
exchange of Registrable Securities, the broker-dealer will not be deemed to admit that it is an underwriter within the meaning of the 1933 Act; and (ii) in the case of any Exchange Offer
Registration Statement, the Company agrees to deliver to the Initial Purchasers on behalf of any Participating Broker-Dealers upon the effectiveness of the Exchange Offer Registration Statement
(A) an opinion of counsel to the Company that such counsel has participated in conferences with officers and other representatives of the Company, counsel for the Initial Purchasers,
representatives of the independent public accountants for the Company, and that such counsel advises that, on the basis of the foregoing, no facts came to such counsel's attention that caused such
counsel to believe that either the Exchange Offer Registration Statement, as of its date, or the Prospectus or any amendment or supplement thereto, at the time the Prospectus was issued, at the time
any such amended or supplemented Prospectus was issued or at the consummation of the Exchange Offer, contained an untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein in the light of the circumstances under which they were made, not misleading, with customary exceptions, (B) officers' certificates
substantially in the form customarily delivered in a public offering of debt securities and (C) a comfort letter or comfort letters in customary form to the extent permitted by Statement on
Auditing Standards No. 72 of the American Institute of Certified Public Accountants (or if such a comfort letter is not permitted, an agreed upon procedures letter in customary form) from the
Company's independent certified public accountants (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company
for which financial statements are, or are required to be, included in the Registration Statement) at least as broad in scope and coverage as the comfort letter or comfort letters delivered to the
Initial Purchasers in connection with the initial sale of the Securities to the Initial Purchasers; 

    (g) (i) in
the case of an Exchange Offer, furnish counsel for the Initial Purchasers and (ii) in the case of a Shelf Registration, furnish counsel for
the Holders copies of any comment letters 

9

 

received from the SEC or any other request by the SEC or any state securities authority for amendments or supplements to a Registration Statement and Prospectus or for additional information; 

    (h) make
every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement at the earliest possible moment; 

    (i)  in
the case of a Shelf Registration, furnish to each Holder of Registrable Securities, and each underwriter, if any, without charge, at least one conformed copy of
each Registration Statement and any post-effective amendment thereto, including financial statements and schedules (without documents incorporated therein by reference and all exhibits
thereto, unless requested); 

    (j)  in
the case of a Shelf Registration, cooperate with the selling Holders to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends; and enable such Registrable Securities to be in such denominations (consistent with the provisions of the Indenture) and registered in
such names as the selling Holders or the underwriters, if any, may reasonably request at least three business days prior to the closing of any sale of Registrable Securities; 

    (k) in
the case of a Shelf Registration, upon the occurrence of any event or the discovery of any facts, each as contemplated by Sections 3(e)(v) and
3(e)(vi) hereof, as promptly as practicable after the occurrence of such an event, use its best efforts to prepare a supplement or post-effective amendment to the Registration
Statement or the related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable
Securities or Participating Broker-Dealers, such Prospectus will not contain at the time of such delivery any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading or will remain so qualified. At such time as such public disclosure is otherwise made or the Company
determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any omitted material fact, the Company agrees promptly to notify each Holder
of such determination and to furnish each Holder such number of copies of the Prospectus as amended or supplemented, as such Holder may reasonably request; 

    (l)  in
the case of a Shelf Registration, a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to a Registration Statement
or amendment or supplement to a Prospectus or any document which is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of a Registration Statement,
provide copies of such document to the Initial Purchasers on behalf of such Holders; and make representatives of the Company as shall be reasonably requested by the Holders, or the Initial Purchasers
on behalf of such Holders, available for discussion of such document; 

    (m) obtain
a CUSIP number for all Exchange Securities, Private Exchange Securities or Registrable Securities, as the case may be, not later than the effective date of a
Registration Statement, and provide the Trustee with printed certificates for the Exchange Securities, Private Exchange Securities or the Registrable Securities, as the case may be, in a form eligible
for deposit with the Depositary; 

    (n) (i)
cause the Indenture to be qualified under the TIA in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be,
(ii) cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the TIA and
(iii) execute, and use its best efforts to cause the Trustee to execute, all documents as may be required to effect such changes, and all other forms and documents required to be filed with the
SEC to enable the Indenture to be so qualified in a timely manner; 

10

  

    (o) in
the case of a Shelf Registration, enter into agreements (including underwriting agreements) and take all other customary and appropriate actions in order to
expedite or facilitate the disposition of such Registrable Securities and in such connection whether or not an underwriting agreement is entered into and whether or not the registration is an
underwritten registration: 

     (i) make
such representations and warranties to the Holders of such Registrable Securities and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in similar underwritten offerings as may be reasonably requested by them; 

    (ii) obtain
opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the
managing underwriters, if any, and the holders of a majority in principal amount of the Registrable Securities being sold) addressed to each selling Holder and the underwriters, if any, covering the
matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters; 

    (iii) obtain
"cold comfort" letters and updates thereof from the Company's independent certified public accountants (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements are, or are required to be, included in the Registration Statement)
addressed to the underwriters, if any, and use reasonable efforts to have such letter addressed to the selling Holders (to the extent consistent with Statement on Auditing Standards No. 72 of
the American Institute of Certified Public Accountants), such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters to underwriters in
connection with similar underwritten offerings; 

    (iv) enter
into a securities sales agreement with the Holders and an agent of the Holders providing for, among other things, the appointment of such agent for the
selling Holders for the purpose of soliciting purchases of Registrable Securities, which agreement shall be in form, substance and scope customary for similar offerings; 

    (v) if
an underwriting agreement is entered into, cause the same to set forth indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 hereof with respect to the underwriters and all other parties to be indemnified pursuant to said Section or, at the request of any underwriters,
in the form customarily provided to such underwriters in similar types of transactions; and 

    (vi) deliver
such documents and certificates as may be reasonably requested and as are customarily delivered in similar offerings to the Holders of a majority in
principal amount of the Registrable Securities being sold and the managing underwriters, if any. 

    The
above shall be done at (i) the effectiveness of such Registration Statement (and each post-effective amendment thereto) and (ii) each closing under any
underwriting or similar agreement as and to the extent required thereunder; 

    (p) in
the case of a Shelf Registration or if a Prospectus is required to be delivered by any Participating Broker-Dealer in the case of an Exchange Offer, make
available for inspection by representatives of the Holders, any underwriters participating in any disposition pursuant to a Shelf Registration Statement, any Participating Broker-Dealer and any
counsel or accountant retained by any of the foregoing, all financial and other records, pertinent corporate documents and properties of the Company reasonably requested by any such persons, and cause
the respective officers, 

11

 

directors, employees, and any other agents of the Company to supply all information reasonably requested by any such representative, underwriter, special counsel or accountant in connection with a
Registration Statement, and make such representatives of the Company available for discussion of such documents as shall be reasonably requested by the Initial Purchasers; 

    (q) (i) in
the case of an Exchange Offer Registration Statement, a reasonable time prior to the filing of any Exchange Offer Registration Statement, any
Prospectus forming a part thereof, any amendment to an Exchange Offer Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Initial Purchasers
and to counsel to the Holders and make such changes in any such document prior to the filing thereof as the Initial Purchasers or counsel to the Holders may reasonably request and, except as otherwise
required by applicable law, not file any such document in a form to which the Initial Purchasers on behalf of the Holders and counsel to the Holders shall not have previously been advised and
furnished a copy of or to which the Initial Purchasers on behalf of the Holders or counsel to the Holders shall reasonably object, and make the representatives of the Company available for discussion
of such documents as shall be reasonably requested by the Initial Purchasers; and (ii) in the case of a Shelf Registration, a reasonable time prior to filing any Shelf Registration Statement,
any Prospectus forming a part thereof, any amendment to such Shelf Registration Statement or amendment or supplement to such Prospectus, provide copies of such document to the Holders, to the Initial
Purchasers, to counsel for the Holders and to the underwriter or underwriters of an underwritten offering of Registrable Securities, if any, make such changes in any such document prior to the filing
thereof as the Initial Purchasers, the counsel to the Holders or the underwriter or underwriters reasonably request and not file any such document in a form to which the Majority Holders, the Initial
Purchasers on behalf of the Holders, counsel for the Holders or any underwriter shall not have previously been advised and furnished a copy of or to which the Majority Holders, the Initial Purchasers
of behalf of the Holders, counsel to the Holders or any underwriter shall reasonably object, and make the representatives of the Company available for
discussion of such document as shall be reasonably requested by the Holders, the Initial Purchasers on behalf of such Holders, counsel for the Holders or any underwriter; 

    (r) in
the case of a Shelf Registration, use its best efforts to cause all Registrable Securities to be listed on any securities exchange on which similar debt
securities issued by the Company are then listed if requested by the Majority Holders, or if requested by the underwriter or underwriters of an underwritten offering of Registrable Securities, if any; 

    (s) in
the case of a Shelf Registration, use its best efforts to cause the Registrable Securities to be rated by the appropriate rating agencies, if so requested by the
Majority Holders, or if requested by the underwriter or underwriters of an underwritten offering of Registrable Securities, if any; 

    (t)  otherwise
comply with all applicable rules and regulations of the SEC and make available to its security holders, as soon as reasonably practicable, an earnings
statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; 

    (u) cooperate
and assist in any filings required to be made with the NASD and, in the case of a Shelf Registration, in the performance of any due diligence
investigation by any underwriter and its counsel (including any "qualified independent underwriter" that is required to be retained in accordance with the rules and regulations of the NASD); and 

    (v) upon
consummation of an Exchange Offer or a Private Exchange, obtain a customary opinion of counsel to the Company addressed to the Trustee for the benefit of all
Holders participating in the Exchange Offer or Private Exchange, which includes an opinion that the 

12

 

Company has duly executed and delivered the Exchange Securities and/or Private Exchange Securities, as applicable. 

    In
the case of a Shelf Registration Statement, the Company may (as a condition to such Holder's participation in the Shelf Registration) require each Holder of Registrable Securities
to furnish to the Company such information regarding the Holder and the proposed distribution by such Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. 

    In
the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any notice from the Company of the happening of any event or the discovery of any facts, each
of the kind described in
Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of Registrable Securities pursuant to a Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if so directed by the Company, such Holder will deliver to the Company (at its expense) all copies in such Holder's
possession, other than permanent file copies then in such Holder's possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice. 

    If
any of the Registrable Securities covered by any Shelf Registration Statement are to be sold in an underwritten offering, the underwriter or underwriters and manager or managers
that will manage such offering will be selected by the Majority Holders included in such offering and shall be acceptable to the Company. No Holder of Registrable Securities may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such Holder's Registrable Securities on the basis provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under
the terms of such underwriting arrangements. 

    4.  Indemnification; Contribution.  

    (a) The
Company agrees to indemnify and hold harmless the Initial Purchasers, each Holder, each Participating Broker-Dealer, each Person who participates as an
underwriter (any such Person being an "Underwriter") and each Person, if any, who controls any Holder or Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act as follows: 

     (i) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act,
including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein
not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto) or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; 

    (ii) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided that (subject to Section 4(d) below) any such settlement is effected with the written consent of the Company; and 

    (iii) against
any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably
incurred in 

13

 

investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above;  provided, however, that
this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by the Holder or Underwriter expressly
for use in a Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto). 

    (b) Each
Holder, severally, but not jointly, agrees to indemnify and hold harmless the Company, the Initial Purchasers, each Underwriter and the other selling Holders,
and each of their respective directors and officers, and each Person, if any, who controls the Company, the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in
Section 4(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf Registration Statement (or any
amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in conformity with written information with respect to such Holder furnished to the
Company by such Holder expressly for use in the Shelf Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or supplement thereto); provided,
however, that no such Holder shall be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement. 

    (c) Each
indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in
respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may
participate at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to
the indemnified party. In no event shall the indemnifying party or parties be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this
Section 4 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each
indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 

    (d) If
at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by 

14

 

such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. 

    (e) If
the indemnification provided for in this Section 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the Holders and the Initial Purchasers
on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. 

    The
relative fault of the Company on the one hand and the Holders and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any
such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, the Holders or the Initial
Purchasers and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

    The
Company, the Holders and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata
allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to
above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. 

    Notwithstanding
the provisions of this Section 4, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the
Securities sold by it were offered exceeds the amount of any damages which such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. 

    No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. 

    For
purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as such Initial Purchaser or Holder, and each director of the Company, and each Person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant
to this Section 7 are several in proportion to the principal amount of Securities set forth opposite their respective names in Schedule A to the Purchase Agreement and not joint. 

    5.  Miscellaneous.  

    5.1.  Rule 144 and Rule 144A.  For so long as the Company is subject to the reporting
requirements of Section 13 or 15 of the 1934 Act, the Company covenants that it will file the reports required to be filed by it under the 1933 Act and Section 13(a) or 15(d) of the 1934
Act and the rules 

15

 

and regulations adopted by the SEC thereunder. If the Company ceases to be so required to file such reports, the Company covenants that it will upon the request of any Holder of Registrable Securities
(a) make publicly available such information as is necessary to permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a prospective purchaser as is
necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take such further action as any Holder of Registrable Securities may reasonably request, and (c) take such
further action that is reasonable in the circumstances, in each case, to the extent required from time to time to enable such Holder to sell its Registrable Securities without registration under the
1933 Act within the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be amended from time to time, (ii) Rule 144A under the 1933
Act, as such Rule may be amended from time to time, or (iii) any similar rules or regulations hereafter adopted by the SEC. Upon the request of any Holder of Registrable Securities, the Company
will deliver to such Holder a written statement as to whether it has complied with such requirements. 

    5.2.  No Inconsistent Agreements.  The Company has not entered into and the Company will not after the
date of this Agreement enter into any agreement which is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to
the Holders hereunder do not and will not for the term of this Agreement in any way conflict with the rights granted to the holders of the Company's other issued and outstanding securities under any
such agreements. 

    5.3.  Amendments and Waivers.  The provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or departure. 

    5.4.  Notices.  All notices and other communications provided for or permitted hereunder shall be made in
writing by hand delivery, registered first-class mail, telex, telecopier, or any courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this Section 5.4, which address initially is the address set forth in the Purchase Agreement with respect to the
Initial Purchasers; and (b) if to the Company, initially at the Company's address set forth in the Purchase Agreement, and thereafter at such other address of which notice is given in
accordance with the provisions of this Section 5.4. 

    All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; two business days after being deposited in the
mail, postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the next business day if timely delivered to an air courier guaranteeing overnight
delivery. 

    Copies
of all such notices, demands, or other communications shall be concurrently delivered by the person giving the same to the Trustee under the Indenture, at the address specified
in such Indenture. 

    5.5.  Successor and Assigns.  This Agreement shall inure to the benefit of and be binding upon the
successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders;  provided that nothing herein shall be deemed
to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms
of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement, including the restrictions on resale set forth 

16

 

in this Agreement and, if applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits hereof. 

    5.6.  Third Party Beneficiaries.  The Initial Purchasers (even if the Initial Purchasers are not Holders)
shall be third party beneficiaries to the agreements made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall have the right to enforce such agreements
directly to the extent they deem such enforcement necessary or advisable to protect their rights or the rights of Holders hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights hereunder. 

    5.7.  Specific Enforcement.  Without limiting the remedies available to the Initial Purchasers and the
Holders, the Company acknowledges that any failure by the Company to comply with its obligations under Sections 2.1 through 2.4 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it would not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the
Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company's obligations under Sections 2.1 through 2.4 hereof. 

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

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

    5.10.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF
THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF. 

    5.11.  Severability.  In the event that any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby. 

17

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

	 	 	PARK PLACE ENTERTAINMENT CORPORATION
	

 	
 	

By:	
 	

  /s/ SCOTT A. LAPORTA   

	 	 	Name:	 	Scott A. LaPorta
	 	 	Title:	 	Executive Vice President and Chief Financial Officer

 

CONFIRMED AND accepted,

as of the date first above written 

CREDIT
SUISSE FIRST BOSTON CORPORATION

BANC OF AMERICA SECURITIES LLC

DEUTSCHE BANC ALEX. BROWN INC.

DRESDNER KLEINWORT WASSERSTEIN—GRANTCHESTER, INC.

SCOTIA CAPITAL (USA) INC.

BNY CAPITAL MARKETS, INC.

COMMERZBANK CAPITAL MARKETS CORPORATION

FIRST UNION SECURITIES, INC.

FLEET SECURITIES, INC.

S.G. COWEN SECURITIES CORPORATION

WELLS FARGO BROKERAGE SERVICES, LLC 

	By:	 	Credit Suisse First Boston Corporation
	

By:	
 	

 	
 	

 
	 	 	/s/ CREDIT SUISSE FIRST BOSTON CORPORATION   
 Name:

Title:	 	 

S–2

QuickLinks

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT<PAGE>

                                                                    EXHIBIT 10.2

                            STOCK PURCHASE AGREEMENT

                                      among

                         SENIOR HOUSING PROPERTIES TRUST

                            SNH/CSL PROPERTIES TRUST

                          CRESTLINE CAPITAL CORPORATION

                                       and

                                 CSL GROUP, INC.

                           Dated as of August 9, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 PAGE
<S>                                                                                                             <C>
SECTION 1. DEFINITIONS AND INTERPRETATIONS........................................................................1
                  1.1.     Certain Definitions....................................................................1
                  1.2.     Interpretation.........................................................................9

SECTION 2. SALE AND PURCHASE OF STOCK............................................................................10
                  2.1.     Sale and Purchase of Stock, Etc.......................................................10
                  2.2.     Deposit...............................................................................10
                  2.3.     Purchase Price Adjustments and Payment................................................10
                  2.4.     The Closing...........................................................................11
                  2.5.     Post Closing Distributions............................................................11
                  2.6.     Option to Purchase Lexington, Lafayette and Boynton Beach.............................12

SECTION 3. REPRESENTATIONS AND WARRANTIES OF CLJ AND CSL.........................................................12
                  3.1.     Organization, Good Standing and Power of CLJ..........................................13
                  3.2.     Organization; Qualification of CSL....................................................13
                  3.3.     Subsidiaries and Affiliates...........................................................13
                  3.4.     Capitalization of CSL.................................................................13
                  3.5.     Authorization; Validity of Agreement; Corporate Action................................14
                  3.6.     Consents and Approvals; No Violations.................................................14
                  3.7.     Books and Records.....................................................................15
                  3.8.     Financial Statements; No Undisclosed Liabilities......................................15
                  3.9.     Absence of Certain Changes............................................................16
                  3.10.    Litigation............................................................................16
                  3.11.    Compliance with Laws and Permits......................................................16
                  3.12.    Assets................................................................................17
                  3.13.    Hazardous Materials...................................................................18
                  3.14.    Contracts and Commitments.............................................................19
                  3.15.    Employee Benefit Plans................................................................19
                  3.16.    Employee Matters......................................................................19
                  3.17.    Insurance.............................................................................19
                  3.18.    Certain Payments......................................................................20
                  3.19.    Taxes.................................................................................20
                  3.20.    FF&E Reserves, Mortgage Reserves and Working Capital..................................23
                  3.21.    Broker's or Finder's Fee..............................................................23
                  3.22.    Supplements to Disclosure Schedule....................................................23

SECTION 4. REPRESENTATIONS AND WARRANTIES OF SNH AND ACQ. SUB....................................................24
                  4.1.     Due Organization, Good Standing and Power.............................................24
                  4.2.     Authorization and Validity of Agreement...............................................24
                  4.3.     Consents and Approvals; No Violations.................................................24
                  4.4.     Financial Statements..................................................................25
                  4.5.     Bankruptcy............................................................................25
                  4.6.     Litigation............................................................................25
                  4.7.     Broker's or Finder's Fee..............................................................25
</TABLE>

                                       i

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                           <C>
SECTION 5. ACCESS AND TRANSACTIONS PRIOR TO CLOSING DATE.........................................................25
                  5.1.     Access to Information Concerning Properties and Records...............................25
                  5.2.     Title Matters.........................................................................27
                  5.3.     Survey Matters........................................................................27
                  5.4.     Environmental and Engineering Reports.................................................28
                  5.5.     Conduct of the Business of the Acquired Companies Pending the Closing Date............28
                  5.6.     Conversion of Certain Acquired Companies..............................................30
                  5.7.     Cooperation...........................................................................31
                  5.8.     Dividends; Distributions..............................................................32
                  5.9.     No Solicitation of Other Offers.......................................................32
                  5.10.    Notification of Certain Matters.......................................................33
                  5.11.    HSR Act Filing........................................................................33
                  5.12.    Public Announcements..................................................................34
                  5.13.    CLJ Stockholder Approval..............................................................34

SECTION 6. CONDITIONS............................................................................................34
                  6.1.     Conditions to Each Party's Obligations................................................34
                  6.2.     Conditions to Obligations of CLJ and CSL..............................................36
                  6.3.     Conditions to Obligations of SNH and ACQ. SUB.........................................37

SECTION 7. NATURE AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATIONS; TAX MATTERS..................39
                  7.1.     Survival of Representations, Warranties, etc..........................................39
                  7.2.     CLJ's Agreement to Indemnify..........................................................39
                  7.3.     SNH's Agreement to Indemnify..........................................................40
                  7.4.     Third Party Claims....................................................................40
                  7.5.     Purchase Price Adjustment.............................................................41

SECTION 8. TERMINATION...........................................................................................41
                  8.1.     Termination...........................................................................41
                  8.2.     Effect of Termination.................................................................43

SECTION 9. MISCELLANEOUS PROVISIONS..............................................................................44
                  9.1.     Notices...............................................................................44
                  9.2.     Schedules and Exhibits................................................................45
                  9.3.     Computation of Time...................................................................45
                  9.4.     Assignment: Successors in Interest....................................................45
                  9.5.     No Third-Party Beneficiaries..........................................................45
                  9.6.     Expenses..............................................................................46
                  9.7.     Investigations........................................................................46
                  9.8.     Number; Gender........................................................................46
                  9.9.     Captions..............................................................................46
                  9.10.    Amendments............................................................................47
                  9.11.    Integration: Waiver...................................................................47
</TABLE>

                                       ii

<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                               PAGE
<S>                                                                                                           <C>
                  9.12.    Governing Law.........................................................................47
                  9.13.    Consent to Jurisdiction...............................................................47
                  9.14.    Severability..........................................................................48
                  9.15.    Counterparts..........................................................................48
                  9.16.    SNH Limitation of Liability...........................................................48
                  9.17.    ACQ. SUB Limitation of Liability......................................................48
                  9.18.    CLJ Limitation of Liability...........................................................48
</TABLE>

                                      iii

<PAGE>

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT ("AGREEMENT") is made and entered into as
of August 9, 2001, among SENIOR HOUSING PROPERTIES TRUST ("SNH"), a Maryland
real estate investment trust, with its principal office located in Newton,
Massachusetts, SNH/CSL PROPERTIES TRUST ("ACQ. SUB"), a Maryland real estate
investment trust, with its principal office located in Newton, Massachusetts,
CRESTLINE CAPITAL CORPORATION ("CLJ"), a Maryland corporation, with its
principal office located in Bethesda, Maryland, and CSL GROUP, INC. ("CSL"), an
Indiana corporation, with its principal office located in Bethesda, Maryland.

                                    RECITALS:

         CLJ is the record and beneficial owner of all of the issued and
outstanding equity securities of CSL, CCC Boynton Beach, Inc., a Delaware
corporation ("CCC BOYNTON") and CCC Senior Living Corporation, a Delaware
corporation ("CCC SENIOR LIVING"). CLJ and certain of its subsidiaries are
engaged in the business of owning (or leasing) and operating the 32 senior
living communities listed in EXHIBIT A (collectively, the "COMMUNITIES"), which
Communities are managed by Marriott Senior Living Services, Inc. and its wholly
owned subsidiaries. SNH is the record and beneficial owner of all of the issued
and outstanding equity securities of ACQ. SUB.

         On the terms and conditions set forth in this Agreement, CLJ desires to
sell and ACQ. SUB desires (i) to purchase and acquire the Communities by means
of acquiring all of the issued and outstanding equity securities of CSL, CCC
Boynton and CCC Senior Living, and (ii) to lease all of the Communities to an
entity to be designated by SNH ("TENANT").

         In consideration of the foregoing, and the representations, warranties,
covenants and agreements set forth in this Agreement, the parties agree as
follows:

                                    SECTION 1.

                         DEFINITIONS AND INTERPRETATIONS

1.1.     CERTAIN DEFINITIONS.

         For purposes of this Agreement, except as otherwise provided or unless
the context clearly requires otherwise, the terms set forth below shall have the
meanings set forth below:

         (1) "Acquired Company": CSL, each CSL Subsidiary, CCC Boynton and CCC
Senior Living.

         (2) "ACQ. SUB": SNH/CSL Properties Trust, a Maryland real estate
investment trust, which is 100% owned by SNH.

         (3) "Affiliate": of any Person shall mean any Person directly or
indirectly controlling, controlled by, or under common control with, such
Person; provided that, for the

<PAGE>

purposes of this definition, "control" (including with correlative meanings, the
terms "controlled by" and "under common control with"), as used with respect to
any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities or partnership interests, by
contract or otherwise.

         (4) "Agreement": this Stock Purchase Agreement as amended or otherwise
modified from time to time in accordance with its terms.

         (5) "Alternative Proposal": as defined in SECTION 5.9(b).

         (6) "Antitrust Division": as defined in SECTION 5.11.

         (7) "Articles of Incorporation": the Articles of Incorporation of CSL,
as amended through the date hereof.

         (8) "Asset": as defined in SECTION 3.12(a).

         (9) "Bankers Trust Line": a general line of credit from Bankers Trust
to CLJ, which line of credit is secured by, INTER ALIA, the stock of CSL and
certain of its Subsidiaries and mortgages on certain of the Properties listed in
SECTION 1.1(65) of the Disclosure Schedule, and guaranteed by certain of the CSL
Subsidiaries.

         (10) "Boynton Beach Mortgage Loan": the indebtedness secured by a Lien
on the property of Senior Living of Boynton Beach Limited Partnership, listed on
SECTION 1.1(10) to the Disclosure Schedule.

         (11) "Business Day": a day, other than a Saturday or a Sunday, on which
banking institutions in the State of Maryland are required to be open.

         (12) "By-laws": the By-laws of CSL, as amended through the date hereof.

         (13) "Capital Leases": any capital lease of any of the Acquired
Companies listed on SECTION 1.1(13) to the Disclosure Schedule.

         (14) "CCC Boynton": as defined in the Recitals.

         (15) "CCC Boynton Stock": as defined in SECTION 2.1.

         (16) "CCC Senior Living": as defined in the Recitals.

         (17) "CCC Senior Living Stock": as defined in SECTION 2.1.

         (18) "CLJ Woodlands Bonds": as defined in SECTION 3.12(a)(ix).

         (19) "Closing": the closing which will take place as described in
SECTION 2.4.

         (20) "Closing Date": the date on which the Closing occurs.

                                      -2-
<PAGE>

         (21) "Code": the Internal Revenue Code of 1986, as amended.

         (22) "Communities": as defined in the Recitals.

         (23) "Consent": any consent, registration, approval, authorization,
waiver or similar affirmation by or of, or filing with or notification to, a
Person pursuant to any Contract, Law, Order or Permit.

         (24) "Consent Reduction Amount": in the case of (A) the failure to
obtain the Consent referred to in SECTION 6.1(c) with respect to CCC Boynton,
the sum of $150,000; (B) the failure to obtain the Consent referred to in
SECTION 6.1(c) relating to the Communities known as Lafayette at Country Place
and/or Lexington at Country Place, an amount equal to that determined by
multiplying the Purchase Price (less $150,000 but before any other adjustment),
by a fraction, the numerator of which is EBITDAR with respect to such Community
for the fiscal year ended December 28, 2001 less that portion of contributions
made to the FF&E Reserves attributable to that Community for the fiscal year
ended December 28, 2001 and the denominator of which is EBITDAR with respect to
all Communities for the fiscal year ended December 28, 2001 less the total
contributions made to the FF&E Reserves for all Communities for the fiscal year
ended December 28, 2001.

         (25) "Contract": any written agreement, arrangement, commitment,
contract, indenture, instrument, lease, license or other obligation of any kind
or character, or other obligation that is binding on any Person or its capital
stock, properties or business.

         (26) "CSL Stock": as defined in SECTION 2.1.

         (27) "CSL Subsidiary": each Person which is a direct or indirect
Subsidiary of CSL and listed on SECTION 1.1(27) of the Disclosure Schedule.

         (28) "Deposit": as defined in SECTION 2.2.

         (29) "Disclosure Schedule": as defined in SECTION 3.

         (30) "EBITDAR": earnings before interest, taxes, depreciation,
amortization and rent.

         (31) "Environmental Claims": any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigations or proceedings under any
Environmental Law or any permit issued under any such Environmental Law
including without limitation (A) any and all claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law and (B)
any and all claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials or arising from alleged injury or threat of injury to
health, safety or the environment.

         (32) "Environmental Law": any federal, state, foreign or local statute,
law, rule, regulation, ordinance, guideline, policy, code or rule of common law
in effect and in each case as amended as of the date hereof and the Closing
Date, and any judicial or administrative

                                      -3-
<PAGE>

interpretation thereof applicable to any Acquired Company or its operations or
property as of the date hereof and the Closing Date, including any judicial or
administrative order, consent decree or judgment, relating to the environment,
health, safety or Hazardous Materials, including the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C.ss. 9601
ET SEQ.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C.ss.
6901 ET SEQ.; the Federal Water Pollution Control Act, as amended, 33 U.S.C.ss.
1251 ET SEQ.; the Toxic Substances Control Act, 15 U.S.C.ss. 2601 ET SEQ.; the
Clean Air Act, 42 U.S.C.ss. 7401 ET SEQ.; Occupational Safety and Health Act, 29
U.S.C. 651 ET SEQ.; Oil Pollution Act of 1990, 33 U.S.C.ss. 2701 ET SEQ.; the
Safe Drinking Water Act, 42 U.S.C.ss. 300f ET SEQ., and their state and local
counterparts and equivalents.

         (33) "ERISA": as defined in SECTION 3.15.

         (34) "ERISA Affiliate": as defined in SECTION 3.15.

         (35) "Excess Life Care Amounts": any amounts paid after June 20, 1997
to any of the Acquired Companies for so-called "continuing care contracts"
(whether or not refundable).

         (36) "FF&E Reserves": as defined in the Operating Agreements.

         (37) "FTC": as defined in SECTION 5.11.

         (38) "GAAP": generally accepted accounting principles as in effect from
time to time in the United States.

         (39) "GMAC Fee": the fee due GMAC in an amount equal to 1% of the
outstanding principal balance, as of the Closing Date, of the GMAC Mortgage
Loans in connection with the assumption of the GMAC Mortgage Loans/change of
control.

         (40) "GMAC Mortgage Loans": collectively, the Mortgage Loans listed as
items 1 through 5 on SECTION 1.1(62) of the Disclosure Schedule.

         (41) "Governmental Entity": a court, arbitral tribunal, administrative
agency or commission or other governmental or other regulatory authority or
agency.

         (42) "Ground Lease": the ground lease described in SECTION 1.1(42) of
the Disclosure Schedule.

         (43) "Hazardous Materials": any (A) petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, transformers or other equipment that contain
dielectric fluid containing levels of polychlorinated biphenyls, and radon gas;
(B) chemicals, materials or substances defined as or included in the definition
of "hazardous substances," "hazardous wastes," "hazardous materials," "extremely
hazardous wastes," "extremely hazardous substances," "restricted hazardous
wastes," "toxic substances," "toxic pollutants," or words of similar import,
under any applicable Environmental Law; and (C) other chemical, material or
substance, exposure to which is prohibited, limited or regulated by any
Governmental Entity.

                                      -4-

<PAGE>

         (44) "HMC": Host Marriott Corporation, a Maryland corporation.

         (45) "HPT": Hospitality Properties Trust, a Maryland real estate
investment trust.

         (46) "HSR Act": as defined in SECTION 3.6.

         (47) "Indemnified Party": as defined in SECTION 7.4(a).

         (48) "Indemnifying Party": as defined in SECTION 7.4(a).

         (49) "Interim Balance Sheet": defined in SECTION 3.8(a).

         (50) "IRS": the United States Internal Revenue Service.

         (51) "Knowledge": an individual will be deemed to have "Knowledge" of a
particular fact or other matter if without further inquiry such individual is
actually aware of such fact or other matter; and an entity (other than an
individual) will be deemed to have "Knowledge" of a particular fact or other
matter if any individual who is currently serving as a director, officer, a
manager whose title includes the term "director," partner, executor, or trustee
of such entity (or in any similar capacity) has Knowledge of such fact or other
matter. In no event will the Knowledge of MSLS or any "independent director" of
any CSL Subsidiary be imputed to CLJ, CSL or any of their respective officers,
other directors or agents.

         (52) "Lakewood Loan Documents": as defined in SECTION 3.12(a)(xi).

         (53) "Law": any federal, state, local or foreign law, statute,
ordinance, rule, regulation, order, judgment or decree, administrative or
judicial decision, and any other executive or legislative proclamation.

         (54) "Lease": the master lease agreement (or collectively, the
individual leases) dated the Closing Date, to be entered into as of the Closing
Date by and between each Acquired Company which owns the Communities and Tenant,
such master lease agreement (or individual leases, as the case may be) to be in
form and substance satisfactory to SNH and ACQ. SUB on the one hand, and Tenant
on the other.

         (55) "Lien": any interest in property, whether such interest is based
on common law, statute, court decision or contract and including, without
limitation, any mortgage, pledge, security interest, lease, encumbrance
(including any easement, exception, reservation or limitation, right of way or
the like), lien, purchase option, call or right, or charge of any kind
(including any agreement to give or permit any of the foregoing), any
conditional sale or other title retention agreement, any lease of property
(whether real, personal or mixed) which is required, in accordance with GAAP, to
be recorded by the lessee as the acquisition of an asset and the incurrence of a
liability, and the filing of any financing statement under the Uniform
Commercial Code or personal property security legislation of any jurisdiction.

         (56) "Losses": as defined in SECTION 7.2(a).

                                      -5-
<PAGE>

         (57) "Marriott Agreements": collectively, the Operating Agreements, the
Noncompetition Agreement, the MI Indemnity Agreement, the Pooling Agreements and
the Transition Agreements.

         (58) "Material Adverse Effect": any adverse change in the business,
assets, liabilities, financial condition or results of operations of the
Acquired Companies taken as a whole (provided, that a matter or matters taken
together shall be deemed to have a material adverse change in the business,
assets, liabilities, financial condition or results of operations only if such
matter or matters have resulted in or are reasonably likely to have or result in
an adverse impact of at least $10,000,000 of value or a $1,000,000 reduction in
net annual cash flow from the Properties, the termination of any Marriott
Agreement (other than the Noncompetition Agreement), or any material adverse
effect on the ability of CLJ or CSL to perform its respective obligations under
this Agreement or to consummate the transactions contemplated hereby). The term
"Material Adverse Effect" shall not include (i) any change, circumstance, event
or consummation of the transactions contemplated by the Agreement or (ii)
changes in general economic conditions or financial markets (including
fluctuations in the price of the shares of common stock of CLJ or conditions in
the business sectors in which the Acquired Companies operate not
disproportionally affecting the Acquired Companies).

         (59) "MGCL": the Maryland General Corporation Law.

         (60) "MI": Marriott International, Inc., a Delaware corporation.

         (61) "MI Indemnity Agreement": the Indemnity Agreement among MSLS, MI,
HMC Senior Communities, Inc. (the predecessor in interest to CLJ) and HMC dated
as of June 21, 1997, as modified by a letter agreement dated June 21, 1997.

         (62) "Mortgage Loans": any indebtedness for borrowed money or for the
deferred purchase price of property or services that is secured by a Lien on the
property or assets of any Acquired Company, listed on SECTION 1.1(62) to the
Disclosure Schedule, other than indebtedness secured by fixtures, furniture and
equipment and leases for the same that in either case are incurred or entered
into by MSLS in the ordinary course of business and in accordance with the terms
of the Operating Agreements. The term "Mortgage Loan" does not include
indebtedness under the Bankers Trust Line (provided that all indebtedness
thereunder is repaid at or prior to Closing) or the Boynton Beach Mortgage Loan.

         (63) "Mortgage Reserves": any and all deposits, escrows and reserves
required by holders of Mortgage Loans or lessors under Capital Leases.

         (64) "MSLS": Marriott Senior Living Services, Inc., a Delaware
corporation.

         (65) "New Loan": means indebtedness in the principal amount of not less
than $150,000,000 nor more than $175,000,000 to be incurred after the date of
this Agreement, but prior to the Closing Date, by CSL and/or one or more of the
CSL Subsidiaries and secured by a mortgage(s) on one or more Properties listed
in SECTION 1.1(65) of the Disclosure Schedule, the proceeds of which shall be
paid as a dividend or otherwise distributed to CLJ in accordance with Section
5.8.

                                      -6-
<PAGE>

         (66) "Nomura Mortgage Loan": the Mortgage Loan listed as item 6 on
SECTION 1.1(62) of the Disclosure Schedule.

         (67) "Noncompetition Agreement": the Amended and Restated
Noncompetition Agreement dated as of December 28, 1998 among HMC, CLJ, Forum
Group, Inc. (predecessor to CSL), MSLS and MI.

         (68) "Operating Agreements": collectively, the Operating Agreements
between CSL, any CSL Subsidiary (and/or their respective Subsidiaries) or Senior
Living of Boynton Beach Limited Partnership, as owner and MSLS, as operator and
listed in SECTION 1.1(68) of the Disclosure Schedule.

         (69) "Order": any administrative decision or award, decree, injunction,
judgment, order, quasi-judicial decision or award, ruling, or writ of any
federal, state, local or foreign or other Governmental Entity.

         (70) "Organizational Documents": any of (a) the articles or certificate
of incorporation and the by-laws of a corporation or other equivalent
organizational documents; (b) the partnership agreement and any statement of
partnership of a general partnership; (c) the limited partnership agreement and
the certificate of limited partnership; (d) any charter, certificate or similar
document adopted or filed in connection with the creation, formation, or
organization of a Person; (e) the operating agreement of a limited liability
company; and (f) any amendment to any of the foregoing.

         (71) "Party": SNH, ACQ. SUB, CSL or CLJ, and "Parties" shall mean each
of SNH, ACQ. SUB, CSL and CLJ.

         (72) "Permit": any federal, state, local or foreign governmental
approval, authorization, certificate, license, permit or exemption to which any
Person is a party or that is or may be binding upon or inure to the benefit of
any Person or its securities, properties or business.

         (73) "Permitted Liens": collectively (i) Liens securing the Mortgage
Loans, the New Loan and the Boynton Beach Mortgage Loan, (ii) Liens set forth in
SECTION 1.1(73) of the Disclosure Schedule, (iii) any Liens for Taxes not yet
due or delinquent; (iv) any statutory encumbrance arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due
or delinquent; (v) any applicable zoning regulation or ordinance or other
governmental laws, ordinances and regulations, provided they do not prohibit or
impair in any material respect the use of a Property as a functioning senior
living community; (vi) any imperfection of title or similar non-monetary Lien
that, individually or in the aggregate with other such Liens, has not, and would
not be reasonably expected to, impair marketability and does not impair, in any
material respect, the use of a Property as a functioning senior living
community; (vii) any Lien created by MSLS which it is obliged to remove pursuant
to the terms of the Operating Agreements; and (viii) Liens on fixtures,
furniture and equipment securing indebtedness (including capitalized leases)
incurred or entered into by MSLS in the ordinary course of business and in
accordance with the terms of the Operating Agreements.

         (74) "Person": any individual, corporation, limited liability company,
partnership, joint venture, trust, association, organization, Governmental
Entity or other entity.

                                      -7-
<PAGE>

         (75) "Pooling Agreements": collectively, the Pooling Agreements between
MSLS and HMC Senior Communities, Inc. (predecessor in interest to CLJ) listed in
SECTION 1.1(75) of the Disclosure Schedule.

         (76) "Properties": all the real property and improvements owned or
leased, directly or indirectly, by any Acquired Company and described in
SECTION 3.12(A)(II) of the Disclosure Schedule and constituting one or more
of the Communities, each a "Property", together with related furnishings,
fixtures and equipment.

         (77) "Prior Tax Matters Agreements": as defined in SECTION 3.19(a).

         (78) "Purchase Price": $600,000,000, adjusted as provided in SECTION
2.3 and SECTION 6.1(C).

         (79) "Subsidiary": with respect to any party, any corporation, limited
liability company, partnership, limited partnership, or other business
association or entity, at least a majority of the voting securities or economic
interests of which is directly or indirectly owned or controlled by such party
or by any one or more of its Subsidiaries.

         (80) "Survey": as defined in SECTION 5.3.

         (81) "Tax" or "Taxes": all taxes imposed by any federal, state, local
or foreign governmental authority, including, but not limited to, income, gross
receipts, excise, profits, AD VALOREM, net worth, value added, service, special
assessments, workers' compensation, utility, severance, production, excise,
stamp, occupation, premiums, windfall profits, real or personal property, sales,
gain, use, license, custom duty, unemployment, capital stock, transfer,
franchise, payroll, withholding, alternative minimum, social security, and
estimated taxes, and other taxes, fees or assessments of a similar nature, and
shall include interest, penalties or additions attributable thereto.

         (82) "Tax Allocation Agreement": as defined in SECTION 6.1(f).

         (83) "Tax Returns": all returns, reports, estimates, information
statements, declarations and other filings required or permitted to be filed
with any taxing authority related to Taxes.

         (84) "Tenant": as defined in the Recitals.

         (85) "Title Company": as defined in SECTION 5.2.

         (86) "Title Commitments": as defined in SECTION 5.2.

         (87) "Transfer Taxes": all Taxes imposed on or resulting from the sale
of the CSL Stock, the CCC Boynton Stock or the CCC Senior Living Stock or the
conversion of the Acquired Companies pursuant to SECTION 5.6 that are in the
nature of (i) real property transfer Taxes, including Taxes levied upon the
transfer of stock or other equity interests in an entity on account of such
entity's direct or indirect ownership of real estate, (ii) excise, sales, use,
valued added, registration stamp, recording, documentary, conveyancing, transfer
or (iii) similar Taxes,

                                      -8-
<PAGE>

in each case including any deficiencies, interest, penalties, additions to Tax
or additional amounts, but in all cases excluding Taxes imposed on income.

         (88) "Transition Agreements": the agreements listed in SECTION 1.1(88)
of the Disclosure Schedule.

         (89) "Treasury Regulations": the Treasury Regulations promulgated under
the Code, including proposed and temporary regulations.

         (90) "Unsecured Loans": any indebtedness for borrowed money or for the
deferred purchase price of property or services that is not secured by a Lien on
the property or assets of any Acquired Company, listed in SECTION 1.1(90) of the
Disclosure Schedule unless incurred or entered into on behalf of an Acquired
Company by MSLS in the ordinary course of business and in accordance with the
terms of the Operating Agreements. The term Unsecured Loans shall not include
intercompany loans between or among the Acquired Companies all of which shall be
discharged prior to Closing.

         (91) "Working Capital": the working capital controlled by MSLS,
relating to operation of the Properties and required to be maintained pursuant
to the Operating Agreements.

         1.2. INTERPRETATION.

         (1) When a reference is made in this Agreement to a section or article,
such reference shall be to a section or article of this Agreement unless
otherwise clearly indicated to the contrary.

         (2) Whenever the words "include", "includes" or "including" are used in
this Agreement, they shall be deemed to be followed by the words "without
limitation."

         (3) The words "hereof", "herein" and "herewith" and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole and not to any particular provision of this Agreement, and article,
section, paragraph, exhibit and schedule references are to the articles,
sections, paragraphs, exhibits and schedules of this Agreement unless otherwise
specified.

         (4) The plural of any defined term shall have a meaning correlative to
such defined term, and words denoting any gender shall include all genders.
Where a word or phrase is defined herein, each of its other grammatical forms
shall have a corresponding meaning.

         (5) A reference to any party to this Agreement or any other agreement
or document shall include such party's successors and permitted assigns.

         (6) A reference to any legislation or to any provision of any
legislation shall include any amendment, modification or re-enactment thereof,
any legislative provision substituted therefor and all regulations and statutory
instruments issued thereunder or pursuant thereto.

         (7) The parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this

                                      -9-
<PAGE>

Agreement shall be construed as if drafted jointly by the parties, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provision of this Agreement.

                                   SECTION 2.

                           SALE AND PURCHASE OF STOCK

         2.1. SALE AND PURCHASE OF STOCK, ETC.

         At the Closing, in consideration of the Purchase Price to be paid by
SNH to CLJ, (i) CLJ shall sell to ACQ. SUB, and ACQ. SUB shall purchase from
CLJ, all of the issued and outstanding capital stock of CSL (the "CSL STOCK"),
CCC Boynton (the "CCC BOYNTON STOCK") and CCC Senior Living (the "CCC SENIOR
LIVING STOCK"), in each case free and clear of all Liens, and (ii) CLJ shall
assign to SNH or its designee the CLJ Woodland Bonds (unless terminated prior to
closing), the Lakewood Loan Documents, the Pooling Agreements, the MI Indemnity
Agreement, the Transition Agreements, all rights of CLJ under Section 7.16 of
the Stock Purchase Agreement dated as of June 17, 1997 between HMC and MSLS and
all rights of CLJ in respect of any expansion projects referenced in Section
7.14 of such Stock Purchase Agreement and (to the extent contemplated by the Tax
Allocation Agreement) the Prior Tax Matters Agreements, in each case free and
clear of all Liens. At Closing, CSL will own all the issued and outstanding
equity securities of each of the CSL Subsidiaries, free and clear of all Liens
other than those Liens listed on SECTION 2.1 of the Disclosure Schedule.

         2.2. DEPOSIT.

         On the date of this Agreement, SNH shall deposit $7,500,000 (the
"DEPOSIT") with American Title Company to be held pursuant to the terms of an
Escrow Agreement in the form of EXHIBIT B. Except as otherwise provided in
SECTION 8.2, on the Closing Date the Deposit will be paid to CLJ and applied to
and constitute a portion of the portion of the Purchase Price paid by wire
transfer.

         2.3. PURCHASE PRICE ADJUSTMENTS AND PAYMENT.

                     (a) The Purchase Price shall be reduced by (a) the sum of
         (A) the aggregate unpaid principal amount, together with accrued and
         unpaid interest, of all Mortgage Loans, Capital Leases (unless the
         Communities known as Lexington at Country Place and Lafayette at
         Country Place are not acquired as a result of the failure to obtain
         Consents), Unsecured Loans and the New Loan, in each case, as of the
         Closing Date, (B) the amount by which the Acquired Companies (other
         than CCC Boynton) have funded less than $4,707,092 of owner-funded
         capital expenditures required under the Operating Agreements for fiscal
         year 2001 (other than FF&E Reserves), as of the Closing Date, (C) any
         deficiency in Mortgage Reserves or amounts due for real estate taxes,
         insurance or other expenses separately accounted for by CLJ
         attributable to such expenses (and not provided for under the Operating
         Agreements) for any period(s) prior to the Closing Date, (D) an amount
         equal to the Excess Life Care Amounts not recognized as income pursuant
         to GAAP as of the Closing Date and (E) the remaining

                                      -10-
<PAGE>

         payments to which holders of the preferred depositary units
         representing preferred limited partner interests in Forum Retirement
         Partners, L.P., a Delaware limited partnership, are entitled but which
         have not been paid to such holders as of the Closing Date, and shall be
         increased by (b) the sum of (A) the amount of capital expenditures
         required under the Operating Agreements for fiscal year 2002 (other
         than FF&E Reserves) which the Acquired Companies (other than CCC
         Boynton) have funded, provided SNH approved such additional capital
         expenditures to the extent of any approval rights in the Operating
         Agreements, in each case, as of the Closing Date, (B) all New Loan
         costs, including the fees and expenses paid to the lenders by or for
         the account of CLJ or the Acquired Companies prior to the Closing Date
         in connection with the New Loan (with CLJ to notify SNH in writing,
         upon receipt of invoices from the lenders or their counsel, of the
         amount and the basis for such fees and expenses) but without
         duplication for any amounts paid under SECTION 9.6, (C) without
         duplication, all prepaid interest under the Mortgage Loans, the
         Unsecured Loans and the Capital Leases, and all prepaid rent under the
         Ground Leases, in each case to the extent attributable to the period
         after the Closing Date, and that portion of the Mortgage Reserves
         attributable to interest for the period after the Closing Date, and (D)
         that portion of Mortgage Reserves and any other prepayments of or
         deposits for real estate taxes, insurance or other expenses separately
         accounted for by CLJ attributable to such expenses (and not provided
         for under the Operating Agreements) for any period(s) after the Closing
         Date. The Purchase Price will be subject to further adjustment as
         provided in SECTION 6.1(c) and to the extent necessary to allocate
         costs incurred by either Party in connection with the transaction to
         comply with the provisions of SECTION 9.6.

                     (b) The Purchase Price (adjusted as provided in SECTION
         2.3(a) and SECTION 6.1(c)) shall be paid as follows: $25,000,000 by
         delivery on the Closing Date of SNH's promissory note in the form of
         EXHIBIT C and the balance and all other amounts due at Closing shall be
         paid by SNH on the Closing Date by wire transfer of immediately
         available funds to CLJ to an account specified by CLJ to SNH at least
         two (2) Business Days prior to the Closing Date.

         2.4. THE CLOSING.

         Subject to the terms and conditions of this Agreement, the Closing
shall take place at the offices of Sullivan & Worcester LLP, in Boston,
Massachusetts at 9:00 a.m. (local time), on January 31, 2002, or, if later, the
date on which all conditions set forth in SECTION 6 have been satisfied, but not
later than June 30, 2002, or at such other time, date or place as the Parties
may agree.

         2.5. POST CLOSING DISTRIBUTIONS.

         The owner's distribution under any Operating Agreement or Pooling
Agreement for the four week fiscal period in which the Closing Date occurs shall
be prorated between CLJ and SNH based on the number of days in such fiscal
period preceding the Closing Date (in the case of CLJ) or on or after the
Closing Date (in the case of SNH). If after the Closing Date, CSL or any CSL
Subsidiary shall receive any owner's distribution under any Operating Agreement
or Pooling Agreement for (i) the 2001 fiscal year, (ii) any four week fiscal
period in the 2002 fiscal

                                      -11-
<PAGE>

year that precedes the Closing Date, or (iii) the four week fiscal period in
which the Closing Date occurs, SNH and ACQ. SUB shall cause such amount to be
remitted promptly to CLJ (or the applicable portion of such amount in the case
of clause (iii)). SNH and ACQ. SUB shall use commercially reasonable efforts to
enforce the provisions of the Operating Agreements and Pooling Agreements that
require the distributions described in this SECTION 2.5.

         2.6. OPTION TO PURCHASE LEXINGTON, LAFAYETTE AND BOYNTON BEACH.

         If, because of the failure to obtain the Consents referred to in
SECTION 6.1(c) with respect to the Communities known as Lafayette at Country
Place, Lexington at Country Place and/or Boynton Beach (the "APPLICABLE
CONSENTS"), such Community and the relevant CSL Subsidiary or CCC Boynton is
excluded from the transactions contemplated hereby, CLJ and CSL shall continue
to use commercially reasonable efforts to obtain the Applicable Consent, shall
cause the relevant CSL Subsidiary or CCC Boynton to comply with SECTION 5.5 and
hereby grant SNH an option to purchase all the issued and outstanding equity of
such CSL Subsidiary or CCC Boynton, or, at the election of SNH, all of the
assets of such CSL Subsidiary or CCC Boynton, for a price equal to the relevant
Consent Reduction Amount less the aggregate unpaid principal amount, together
with accrued and unpaid interest, of the related Capital Lease, and such
purchase shall be deemed to have been made with the benefit of the
representations, warranties and covenants contained in this Agreement; provided
that if SNH exercises such option before the Applicable Consents have been
obtained, SNH shall indemnify CLJ from any loss, cost or expense that CLJ incurs
to the extent attributable to the failure to obtain the Applicable Consents
before the exercise of such option, and SNH shall not be entitled to the benefit
of the representations and warranties to the extent pertaining to the Applicable
Consents. Such option shall expire on the eighteen month anniversary of the
Closing Date and may be exercised by written notice from SNH to CLJ given no
less than 60 days prior to the requested purchase date.

         Subject to the prior receipt of the Applicable Consent for any excluded
Community and the relevant CSL Subsidiary or CCC Boynton Beach, CLJ may require
SNH or its designee to purchase all the issued and outstanding equity of such
CSL Subsidiary or CCC Boynton (or at the election of SNH, all of the assets of
such CSL Subsidiary or CCC Boynton), for a price equal to the relevant Consent
Reduction Amount less the aggregate unpaid principal amount, together with
accrued and unpaid interest, of the related Capital Lease, and such purchase
shall be deemed to have been made with the benefit of the representations,
warranties and covenants contained in this Agreement. CLJ's right to require
such purchase shall expire on the eighteen month anniversary of the Closing Date
and may be exercised by written notice from CLJ to SNH given no less than 60
days prior to the requested purchase date.

                                   SECTION 3.

                  REPRESENTATIONS AND WARRANTIES OF CLJ AND CSL

         Except as specifically set forth in the disclosure schedule prepared by
CLJ and CSL and delivered to SNH simultaneously with the execution hereof (the
"DISCLOSURE SCHEDULE"), CLJ and CSL jointly and severally represent and warrant
to SNH and ACQ. SUB that all of the statements contained in this SECTION 3 are
true as of the date of this Agreement (or, if made as of a specified date, as of
such date), and will be true as of the Closing Date as though made on the

                                      -12-
<PAGE>

Closing Date. Each exception set forth in the Disclosure Schedule and each other
response to this Agreement set forth in the Disclosure Schedule is identified by
reference to, or has been grouped under a heading referring to, a specific
individual section of this Agreement and, except as otherwise specifically
stated with respect to such exception, relates only to such section.

         3.1. ORGANIZATION, GOOD STANDING AND POWER OF CLJ.

         CLJ is a corporation duly organized, validly existing and in good
standing under the laws of the State of Maryland and has all requisite corporate
power and authority to own, lease and operate its properties and to carry on its
business as now being conducted.

         3.2. ORGANIZATION; QUALIFICATION OF CSL.

         CSL (a) is a corporation duly organized, validly existing and in good
standing under the laws of its state of incorporation; (b) has full corporate
power and authority to carry on its business as it is now being conducted and to
own and lease the properties and assets it now owns and leases; and (c) is duly
qualified to do business as a foreign corporation and is in good standing in
every jurisdiction in which ownership of property or the conduct of its business
requires such qualification, except where the failure to do so would not,
individually or in the aggregate, have a Material Adverse Effect. CSL has
heretofore delivered to SNH complete and correct copies of the Articles of
Incorporation and By-laws of CSL as presently in effect.

         3.3. SUBSIDIARIES AND AFFILIATES.

         SECTION 3.3 of the Disclosure Schedule sets forth for each current CSL
Subsidiary, and for each of CCC Boynton and CCC Senior Living, its name, type of
entity, jurisdiction of incorporation or formation, capitalization, the names of
the record holders of its equity interests and the jurisdictions in which it is
qualified to do business. Except as set forth in SECTION 3.3 of the Disclosure
Schedule, CSL currently does not own, directly or indirectly, any capital stock
or other equity interests in any Person. Except as set forth in SECTION 3.3 of
the Disclosure Schedule, all the equity interests in each CSL Subsidiary are
owned directly or indirectly by CSL, free and clear of all Liens, and are
validly issued, fully paid and nonassessable, and there are no outstanding
options, rights or agreements of any kind relating to the issuance, sale or
transfer of any capital stock or other equity securities of any CSL Subsidiary.
All the capital stock of CCC Boynton and CCC Senior Living is owned directly by
CLJ, free and clear of all Liens, and is validly issued, fully paid and
nonassessable, and there are no outstanding options, rights or agreements of any
kind relating to the issuance, sale or transfer of any capital stock or other
equity securities of CCC Boynton or CCC Senior Living. Each of the CSL
Subsidiaries, CCC Boynton and CCC Senior Living is duly organized, validly
existing and in good standing under the laws of its state of organization, and
is duly qualified to do business and in good standing in every jurisdiction in
which ownership of property or the conduct of its business requires such
qualification, except where the failure to do so would not, individually or in
the aggregate, have a Material Adverse Effect.

         3.4. CAPITALIZATION OF CSL.

         The authorized capital stock of CSL consists of 100 shares of common
stock, no par value, of which 100 shares are issued and outstanding. All the
issued and outstanding capital

                                      -13-
<PAGE>

stock of CSL has been duly authorized, validly issued, fully paid and
non-assessable, is owned beneficially and of record by CLJ, and, except for the
pledge of the CSL Stock securing obligations under the Bankers Trust Line, is
free and clear of any Liens. None of the outstanding capital stock of CSL has
been issued in violation of any federal or state securities Laws or any
preemptive right or rights to subscribe for or purchase its capital stock or
other securities. There is no indebtedness issued and outstanding having general
voting rights or debt convertible into capital stock or other securities of CSL
having such rights. Except as set forth above, (a) there is no capital stock or
other securities of CSL authorized, issued or outstanding; (b) there are no
securities outstanding which are convertible into or exercisable or exchangeable
for common stock or other securities of CSL; and (c) there are no outstanding
options, rights, Contracts, warrants, subscriptions, conversion rights or other
agreements or commitments of any character pursuant to which CSL may be required
to purchase, redeem, issue or sell any of its capital stock or other securities
of CSL or any CSL Subsidiary.

         3.5. AUTHORIZATION; VALIDITY OF AGREEMENT; CORPORATE ACTION.

         Subject to SECTION 3.6(B), each of CLJ and CSL has full power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. Subject to SECTION 3.6(B), the execution,
delivery and performance by each of CLJ and CSL of this Agreement and the
consummation by it of the transactions contemplated hereby have been duly
authorized by their respective Boards of Directors and no other action on the
part of CLJ or CSL is necessary to authorize the execution and delivery by CLJ
or CSL of this Agreement or the consummation by it of the transactions
contemplated hereby. Except as described in SECTION 3.6(b), no vote of, or
consent by, the holders of any capital stock issued by CLJ or CSL is necessary
to authorize the execution and delivery by CLJ or CSL of this Agreement or the
consummation by it of the transactions contemplated hereby. This Agreement has
been duly executed and delivered by each of CLJ and CSL and, assuming due and
valid authorization, execution and delivery hereof by SNH and ACQ. SUB, this
Agreement is a valid and binding obligation of each of CLJ and CSL enforceable
against each of CLJ and CSL in accordance with its terms, except (a) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, and other
similar laws of general application affecting enforcement of creditors' rights
generally and (b) the availability of the remedy of specific performance or
injunctive or other forms of equitable relief may be subject to equitable
defenses and would be subject to the discretion of the court before which any
proceeding therefor may be brought.

         3.6. CONSENTS AND APPROVALS; NO VIOLATIONS.

         Except for (a) the Consents as may be required under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR
ACT"); (b) the approval of the sale of the CSL Stock by the holders of the
common stock of CLJ; (c) compliance with the requirements of each of the
Marriott Agreements (including, without limitation, Section 18 of the several
Operating Agreements and of Section 2 of the Noncompetition Agreement); (d) the
Consents listed in SECTION 6.1(c) of the Disclosure Schedule; and (e) Consents
required for healthcare Permits (including Medicare and Medicaid provider
agreements), none of the execution, delivery or performance of this Agreement by
CLJ or CSL, or the consummation by CLJ or CSL of any of the transactions
contemplated hereby, will (i) conflict with or result in any breach of any
provision of the Organizational Documents of CLJ or any Acquired Company, (ii)
require any

                                      -14-
<PAGE>

Consent of any Governmental Entity, or (iii) violate any Contract, Law, Order or
Permit to which CLJ or any Acquired Company is a party or that is binding on or
affects any of their properties or assets, excluding, however, from the
foregoing clauses (ii) and (iii), such Consents, the failure of which to obtain
would not, and violations, breaches or defaults, the occurrence of which would
not, in either case individually or in the aggregate, have a Material Adverse
Effect. SNH and ACQ. SUB acknowledge that (A) the representation and warranty
set forth in this SECTION 3.6, insofar as pertaining to the conversion of
certain Acquired Companies pursuant to SECTION 5.6, is given only to the
Knowledge of CLJ and (B) no representation is given with respect to any Consents
required in connection with the Leases.

         3.7. BOOKS AND RECORDS.

         For the period from and after January 1, 1998: (i) the books of account
of the Acquired Companies are complete and correct in all material respects and
have been maintained in accordance with sound business practices; (ii) each
Acquired Company has made and kept books, records and accounts which, in
reasonable detail, accurately and fairly reflect its transactions and the
dispositions of its assets and to permit preparation of financial statements in
conformity with GAAP; (iii) the stock ledger (or equivalent partnership or
limited liability company records) of each of the Acquired Companies is complete
and correct; (iv) the minute books (or equivalent partnership or limited
liability company records) of each of the Acquired Companies contain accurate
and complete records in all material respects of all meetings held of, and
corporate (or equivalent) action taken by, the stockholders (partners or
members) and the Boards of Directors (general partners or managers) of the
respective companies; and (v) no meeting of any such stockholders (partners or
members) or Board of Directors (general partners or managers) has been held for
which minutes have not been prepared and are not contained in such minute books.
At the Closing, the Acquired Companies will have possession of their respective
books and records.

         3.8. FINANCIAL STATEMENTS; NO UNDISCLOSED LIABILITIES.

                     (a) The unaudited balance sheet of each Acquired Company as
         of June 15, 2001 (the "INTERIM BALANCE SHEET") and the related
         statements of income of each Acquired Company for the fiscal period
         then ended, complete and correct copies of which shall be furnished to
         SNH on or before September 15, 2001, present fairly, in all material
         respects, the financial condition and results of operations of such
         Acquired Company as at such date and for such period, as the case may
         be.

                     (b) The audited consolidated balance sheets of CSL and its
         Subsidiaries as at January 1, 1999, December 31, 1999 and December 29,
         2000, and the related consolidated statements of income and cash flows
         for the fiscal years then ended, complete and correct copies of which
         shall be furnished to SNH on or before September 15, 2001, present
         fairly, in all material respects, the consolidated financial condition
         and results of operations and cash flows of CSL and its Subsidiaries as
         at such dates and for such fiscal years, as the case may be.

                     (c) Except (i) as and to the extent of the amounts
         specifically reflected or reserved on the Interim Balance Sheet, (ii)
         obligations under Contracts and other

                                      -15-
<PAGE>

         liabilities entered into in the ordinary course of business and
         consistent with past practice and not in excess of current requirements
         which are not required by GAAP to be reflected on the Interim Balance
         Sheet, and (iii) liabilities and obligations incurred in the ordinary
         course of business consistent with past practice since the date of the
         Interim Balance Sheet, no Acquired Company has any liabilities or
         obligations of any nature (whether absolute, accrued, contingent or
         otherwise) that would be required to be reflected on a consolidated
         balance sheet of the Acquired Company or in the notes thereto prepared
         in accordance with GAAP.

                     (d) On the Closing Date, all real property owned or leased
         by the Acquired Companies will continue to be owned or leased by the
         Acquired Companies "AS IS and WHERE IS", but subject to no liabilities
         (whether absolute, accrued, known, or unknown, contingent or otherwise
         and whether due or to become due) other than (i) the Ground Lease,
         Capital Leases, the Mortgage Loans, the Unsecured Loans, the Boynton
         Beach Mortgage Loan and the New Loan, (ii) liabilities incurred by MSLS
         in the ordinary course of business in accordance with the Operating
         Agreements and (iii) those liabilities set forth on the appropriate
         Title Commitment for the Property (provided that the exclusion provided
         in this clause (iii) shall not limit the right of SNH to object to any
         such liability nor limit any obligation of CLJ to cure any title
         exception objected to by SNH under SECTION 5.2 or 5.3).

                     (e) The financial statements referred to in this SECTION
         3.8 have been prepared in accordance with GAAP consistently applied
         throughout the periods involved, except as set forth in the notes
         thereto.

         3.9. ABSENCE OF CERTAIN CHANGES.

         Since June 15, 2001, (a) there has not occurred any event, change,
effect, fact, circumstance or other occurrence which has had, or which could
reasonably be expected to have, a Material Adverse Effect; (b) the business of
each Acquired Company has been conducted only in the ordinary course consistent
with past practice; and (c) no Acquired Company has engaged in any material
transaction or entered into any material agreement outside the ordinary course
of business.

         3.10. LITIGATION.

         Neither CLJ nor CSL has received written notice of and, to the
Knowledge of each of CLJ and CSL, no action or proceeding is pending or
threatened and no investigation looking toward such an action or proceeding has
begun, which (a) questions the validity of this Agreement or any action taken or
to be taken pursuant hereto; (b) will have a Material Adverse Effect; (c) result
in or subject any Acquired Company or any of the Properties to a material
liability; or (d) involves any material condemnation or eminent domain
proceedings against any of the Properties.

         3.11. COMPLIANCE WITH LAWS AND PERMITS.

         To the Knowledge of each of CLJ and CSL, (a) the Acquired Companies,
the Properties and the use and operation of the Properties do not violate any
material Laws including, without

                                      -16-
<PAGE>

limitation, those relating to construction, occupancy, zoning, adequacy of
parking, environmental protection, occupational health and safety and fire
safety applicable thereto; and (b) except as set forth in SECTION 3.11 of the
Disclosure Schedule, there are presently in effect all material Permits
(including all healthcare licenses) necessary to operate the businesses of the
Acquired Companies and for the current use, occupancy and operation of the
Properties. Neither CLJ nor CSL has received written notice of any threatened
request, application, proceeding, plan, study or effort which would materially
adversely affect the present use or zoning of any of the Properties or which
would modify or realign any adjacent street or highway.

         3.12. ASSETS.

                     (a) The assets being acquired, directly or indirectly, by
         SNH and ACQ. SUB pursuant to SECTION 2.1 hereof (collectively, the
         "ASSETS") consist of (1) the CSL Stock, the CCC Boynton Stock and the
         CCC Senior Living Stock and (2) the following assets of the Acquired
         Companies (including certain assets of CLJ that are to be sold,
         transferred and assigned to SNH or its designee at Closing as
         contemplated by SECTION 2.1):

                           (i) as to CSL, the equity securities of each of the
                     CSL Subsidiaries;

                           (ii) the real property owned or leased, directly or
                     indirectly by an Acquired Company and described in SECTION
                     3.12(a)(ii) of the Disclosure Schedule (which Section
                     identifies the Acquired Company that so owns or leases such
                     property);

                           (iii) the general partnership interest of CCC Boynton
                     in Senior Living of Boynton Beach Limited Partnership;

                           (iv) the interest of CCC Senior Living as the
                     independent member of CCFL Senior Living LLC, CCOP Senior
                     Living LLC, CCCP Senior Living LLC, CCSL Senior Living LLC
                     and CCDE Senior Living LLC;

                           (v) the rights and interests of the Acquired
                     Companies under the Marriott Agreements, the Ground Lease,
                     and the Capital Leases;

                           (vi) the FF&E Reserves and the Mortgage Reserves;

                           (vii) the Working Capital;

                           (viii) except as set forth in SECTION 3.12(b) of the
                     Disclosure Schedule with respect to any Property (and
                     except for any items subject to a lease entered into by
                     MSLS in the ordinary course of business and in accordance
                     with the Operating Agreements), all furniture, fixtures and
                     equipment and all supplies used in connection with such
                     Property;

                                      -17-
<PAGE>

                           (ix) all the outstanding bonds issued in respect of
                     the Woodlands Community (unless terminated prior to
                     closing), $16,765,000 of which are held by Panther Holdings
                     Level I, L.P., a Delaware limited partnership and a CSL
                     Subsidiary and the remaining $15,450,000 of which are
                     currently held by CLJ (and will be assigned in accordance
                     with SECTION 2.1) (the "CLJ WOODLANDS BONDS") ;

                           (x) the rights and interests of the Acquired
                     Companies in respect of the agreements listed in SECTION
                     3.12(a)(x) of the Disclosure Schedule;

                           (xi) a promissory note in the original principal
                     amount of $3,166,451 dated December 31, 1997 made by Senior
                     Living of Lakewood, LLC, together with a Loan Agreement
                     dated December 31, 1997 and the Loan Documents, as defined
                     therein (collectively, the "LAKEWOOD LOAN DOCUMENTS") to
                     which the Parties agree to ascribe no value; and

                           (xii) the books and records of each Acquired Company
                     referenced in SECTION 3.7.

                     (b) Except (i) for Permitted Liens, and (ii) as disclosed
         in SECTION 3.12(b) of the Disclosure Schedule and on the Title
         Commitment for each Property (subject to the parenthetical in clause
         (iii) of SECTION 3.8(d)), to the Knowledge of CLJ and CSL, at the
         Closing CLJ and each Acquired Company will have good and marketable
         title, free and clear of all Liens, to all of its Assets, other than
         Assets that are leased or licensed by an Acquired Company, with respect
         to which such Acquired Company has valid and enforceable leases or
         licenses under which there exists no default, event of default or event
         which, with notice or lapse of time or both, would constitute a
         default, except for such defaults which have not had or are not
         reasonably likely to have, either individually or in the aggregate, a
         Material Adverse Effect.

         3.13. HAZARDOUS MATERIALS.

         Except as disclosed to SNH in writing or as described in any
environmental report identified in SECTION 3.13 of the Disclosure Schedule, true
and complete copies of which have been furnished to SNH, to the Knowledge of CLJ
and CSL, none of the Acquired Companies nor any tenant or other occupant or user
of any Property, or any portion thereof, has stored or disposed of (or engaged
in the business of storing or disposing of) or has released or caused the
release of any Hazardous Materials on any Property or any portion thereof, the
removal of which is required or the maintenance of which is regulated,
prohibited or penalized by any Environmental Law, and, to the Knowledge of CLJ
and CSL, except as disclosed to SNH in writing or as set forth in any
environmental report identified in SECTION 3.13 of the Disclosure Schedule, each
Property is free from any such Hazardous Materials, except any such materials
maintained in accordance with applicable Environmental Law.

                                      -18-
<PAGE>

         3.14. CONTRACTS AND COMMITMENTS.

         Other than the Marriott Agreements, the Ground Lease, the Capital
Leases, the agreements evidencing or securing the Mortgage Loans, the Unsecured
Loans and the Boynton Beach Mortgage Loan (which agreements are listed on
SECTIONS 1.1(62), 1.1(90) and 1.1(10) to the Disclosure Schedule), the
agreements evidencing or securing the New Loan, the Prior Tax Matters
Agreements, matters shown on the Title Commitments, Medicare and Medicaid
provider agreements, and agreements entered into by MSLS, or by the Acquired
Companies at the direction of MSLS, in the ordinary course of business and in
accordance with the Operating Agreements for the Properties, and other than the
matters set forth in SECTION 3.14 of the Disclosure Schedule there are no
material Contracts affecting any of the Acquired Companies which will be binding
on the Acquired Companies subsequent to the Closing Date.

         3.15. EMPLOYEE BENEFIT PLANS.

         No Acquired Company sponsors, maintains or contributes or has
maintained or contributed to any: deferred compensation, incentive compensation,
stock purchase, stock option or other equity compensation plan, program,
agreement or arrangement; severance or termination pay, medical, surgical,
hospitalization, life insurance or other "welfare" plan, fund or program (within
the meaning of Section 3(1) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA")); profit-sharing, stock bonus or other "pension"
plan, fund or program (within the meaning of Section 3(2) of ERISA); employment,
termination or severance agreement; Contract with any officer or director; or
any other employee benefit plan, fund, program, agreement or arrangement;
provided that the foregoing representation is given only as to the Knowledge of
CLJ and CSL insofar as relating to the period prior to June 21, 1997. No
Acquired Company nor any trade or business, whether or not incorporated, that
together with any Acquired Company would be deemed a "single employer" within
the meaning of Section 4001(b) of ERISA (an "ERISA AFFILIATE") has incurred any
liability under Title IV of ERISA that has not been satisfied in full, and no
condition exists that presents a material risk of any such liability being
incurred by an Acquired Company.

         3.16. EMPLOYEE MATTERS.

         Since June 20, 1997, no Acquired Company has had any employees.

         3.17. INSURANCE.

         Each Acquired Company has policies of insurance of the type and in
amounts customarily carried by Persons conducting businesses or owning assets
similar to those of the Acquired Companies. All such policies are in full force
and effect, all premiums due thereon have been paid and the Acquired Companies
are otherwise in compliance in all material respects with the terms and
provisions of such policies. Furthermore, except as would not, individually or
in the aggregate, have a Material Adverse Effect, to the Knowledge of CLJ and
CSL, (a) no Acquired Company has received any notice of cancellation or
non-renewal of any such policy or arrangement nor is the termination of any such
policies or arrangements threatened, (b) there is no claim pending under any of
such policies or arrangements as to which coverage has been questioned, denied
or disputed by the underwriters of such policies or arrangements, (c) no

                                      -19-
<PAGE>

Acquired Company has received any written notice from any of its insurance
carriers that any insurance premiums will be increased in the future or that any
insurance coverage presently provided for will not be available to it in the
future on substantially the same terms as now in effect and (d) none of such
policies or arrangements provides for any retrospective premium adjustment,
experienced-based liability or loss sharing arrangement affecting any Acquired
Company.

         3.18. CERTAIN PAYMENTS.

         No Acquired Company, or director, officer or agent of any Acquired
Company or, to the Knowledge of CLJ and CSL, any other Person associated with or
acting for or on behalf of CLJ or CSL, has directly or indirectly (a) made any
contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other
payment to any Person, private or public, regardless of form, whether in money,
property, or services (i) to obtain favorable treatment in securing business,
(ii) to obtain special concessions or for special concessions already obtained,
for or in respect of any Acquired Company, or (iii) in violation of any Law; or
(b) established or maintained any fund or asset that has not been recorded in
the books and records of the Acquired Companies; provided that the foregoing
representation is given only as to the Knowledge of CLJ and CSL insofar as
relating to the period prior to June 21, 1997. No representation is made under
this SECTION 3.18 as to any "independent director" of any CSL Subsidiary.

         3.19. TAXES.

                     (a) With respect to periods ending after December 28, 1998,
         all material Tax Returns required to be filed with respect to each of
         the Acquired Companies have been timely filed and such Tax Returns are
         complete and accurate in all material respects. All material Taxes
         required to be paid by or on behalf of the Acquired Companies (other
         than Taxes for which CLJ or the Acquired Companies are indemnified)
         have been paid when due and payable or, to the extent of Taxes not yet
         due and payable, required estimated Tax payments have been made in
         respect thereof. With respect to periods ending after December 28,
         1998, no request has been made for an extension of time within which to
         file any Tax Return in respect of any of the Acquired Companies, which
         Tax Return is due and has not yet been filed; to CLJ's Knowledge, none
         of CLJ, its Subsidiaries, or any Acquired Company has after December
         28, 1998 requested an extension of time within which to file any Tax
         Return in respect of any of the Acquired Companies, which Tax Return is
         due and has not yet been filed. After December 28, 1998, none of CLJ,
         its Subsidiaries, or any Acquired Company has received written notice
         from any governmental agency in a jurisdiction in which a particular
         Acquired Company does not file a Tax Return stating that such Acquired
         Company is or may be subject to taxation by that jurisdiction. There
         are no Liens on any of the assets of any Acquired Company with respect
         to Taxes, other than statutory liens for Taxes not yet due and payable.
         The responsibility for filing Tax Returns and paying Taxes for CLJ and
         its Subsidiaries for periods prior to December 29, 1998 (and certain
         periods which straddle December 28, 1998) is addressed in a Tax Matters
         Agreement, dated as of June 21, 1997, by and among MI, MSLS, HMC, HMC
         Senior Communities, Inc., and Forum Group, Inc. (the predecessor of
         CSL), and/or a Tax Sharing Agreement, dated as of December 28, 1998 by
         and among HMC, Host Marriott L.P. and CLJ (collectively, the "PRIOR TAX

                                      -20-
<PAGE>

         MATTERS AGREEMENTS"). Each of CLJ and CSL, and to the Knowledge of CLJ
         and CSL (except as disclosed on SECTION 3.19(a) of the Disclosure
         Schedule) each other party thereto, has complied in all material
         respects with each of the Prior Tax Matters Agreements, and each such
         Prior Tax Matters Agreement is a valid and binding obligation of each
         of the parties thereto enforceable in accordance with its terms. After
         December 28, 1998, each of CLJ, its Subsidiaries, and the Acquired
         Companies have taken all actions necessary to, and none of them have
         failed to take any actions necessary to, preserve and enforce all
         material rights which CLJ, its Subsidiaries, or the Acquired Companies
         may have or may have had under each Prior Tax Matters Agreement,
         including without limitation the rights to have parties other than CLJ,
         its Subsidiaries, or the Acquired Companies bear responsibility for Tax
         Returns and Taxes in respect of the Acquired Companies in respect of
         Tax periods (including partial periods and straddle periods) covered by
         the Prior Tax Matters Agreements. There is no claim pending or
         threatened by any party to any Prior Tax Matters Agreement to the
         effect (i) that any of CLJ, its Subsidiaries or the Acquired Companies
         has failed to duly comply with the terms of such Prior Tax Matters
         Agreement or (ii) that such party does not bear responsibility under
         such Prior Tax Matters Agreement for Tax Returns or Taxes in respect of
         the Acquired Companies for periods (including partial periods or
         straddle periods) prior to December 29, 1998.

                     (b) With respect to periods ending after December 28, 1998,
         except as disclosed on SECTION 3.19(b) of the Disclosure Schedule (i)
         no deficiencies for any material Taxes have been proposed, assessed or
         asserted in writing in respect of any Tax Returns filed by or on behalf
         of any Acquired Company or claimed in writing to be due by any taxing
         authority or otherwise that have not been settled and paid in full;
         (ii) other than Tax Returns relating to sales and use Taxes and
         personal property Taxes wherein the contested Taxes for all such Tax
         Returns in the aggregate do not exceed $200,000, no Tax Return with
         respect to any Acquired Company has been or is currently being audited
         by the IRS or other taxing authority (whether foreign or domestic);
         (iii) none of CLJ, CSL, or any Acquired Company has executed or filed
         with the IRS or any other taxing authority (whether foreign or
         domestic) any agreement, waiver, or other document extending, or having
         the effect of extending, the period for assessment or collection of any
         Taxes, which extension or waiver is still in effect, and except for the
         Prior Tax Matters Agreements, no Acquired Company has entered into any
         tax allocation or sharing agreement with any other entity; (iv) each of
         CLJ and CSL has delivered to SNH correct and complete copies of all
         examination reports, statements of deficiencies and similar documents
         prepared by the IRS or any other taxing authority (whether foreign or
         domestic) that was received by CLJ or any of its Subsidiaries and
         involving any Acquired Company and a material amount of Taxes; (v) all
         final adjustments made by the IRS with respect to any Tax Return
         involving any Acquired Company have been reported to the relevant
         state, local, or foreign taxing authorities to the extent required by
         Law. Except under the Prior Tax Matters Agreements, (i) no requests for
         ruling or determination letters filed by CLJ or any Acquired Company
         are pending with any taxing authority, and (ii) no Acquired Company has
         any liability to any Person with respect to Taxes paid, owed or to be
         paid for periods of time during which any Acquired Company or any
         predecessor thereof were members of a consolidated group other than the
         consolidated group of which CLJ is the common parent. No Acquired
         Company is bound by any

                                      -21-
<PAGE>

         currently effective private ruling, closing agreement, or similar
         agreement with any Taxing Authority relating to Taxes.

                     (c) No Acquired Company has filed a consent pursuant to
         Section 341(f) of the Code, or agreed to have Section 341(f)(2) of the
         Code apply to any disposition of a subsection (f) asset (as such term
         is defined in Section 341(f)(4) of the Code) owned by it. No Acquired
         Company has a permanent establishment in any foreign country or
         operates or conducts business through any branch in any foreign
         country. No Acquired Company has agreed to or is required to make any
         adjustment pursuant to Section 481(a) of the Code by reason of a change
         in the accounting method initiated by CLJ or any Acquired Company, and
         neither CLJ nor CSL has any Knowledge that the IRS has proposed any
         such adjustment or change in accounting method.

                     (d) Each of CSL and CLJ is a "United States person" within
         the meaning of Section 7701(a)(30) of the Code.

                     (e) No Acquired Company is or has been a "reporting
         corporation" subject to the information reporting and record
         maintenance requirements of Section 6038A of the Code and the Treasury
         Regulations thereunder. No Acquired Company or predecessors by merger
         or consolidation of any of them has within the past three (3) years
         been a party to a transaction intended to qualify under Section 355 of
         the Code or under so much of Section 356 of the Code as relates to
         Section 355 of the Code.

                     (f) SNH has been provided access by CLJ and CSL to true and
         complete copies of (i) relevant portions of income tax audit reports,
         statements of deficiencies, closing or other agreements received by or
         on behalf of CLJ or any Acquired Company relating to any material
         amount of Taxes owed by any Acquired Company, and (ii) all material
         federal, state, local and foreign income, franchise and value added Tax
         Returns and sales, use and property Tax Returns, together with all
         schedules and attachments thereto, for each Acquired Company for
         periods ending after December 28, 1998.

                     (g) Except for those Acquired Companies listed in SECTION
         3.19(g) of the Disclosure Schedule, each Acquired Company is (and
         through the Closing will remain) for federal income tax purposes either
         a partnership or a disregarded entity that is not separate from its
         owner, in each case pursuant to Treasury Regulation Section 301.7701-3,
         and to the extent allowed under applicable Law, each such Acquired
         Company is (and through the Closing will remain) similarly classified
         for state and local income tax purposes. No Acquired Company is
         classified for federal income tax purposes as a publicly traded
         partnership under Section 7704(b) of the Code.

                     (h) Neither CSL nor any Acquired Company owns 10% or more,
         by vote or value, of the stock or securities of any one issuer, except
         for stock or securities in an Acquired Company.

                                      -22-
<PAGE>

         3.20. FF&E RESERVES, MORTGAGE RESERVES AND WORKING CAPITAL.

                     (a) SECTION 3.20(a) of the Disclosure Schedule contains a
         true, accurate and complete description of all property comprising the
         FF&E Reserves as of June 15, 2001, and such FF&E Reserves have, to the
         Knowledge of CLJ and CSL, been maintained in accordance with the
         Operating Agreements.

                     (b) SECTION 3.20(b) of the Disclosure Schedule contains a
         true, accurate and complete description of all property comprising the
         Mortgage Reserves as of July 13, 2001, and such Mortgage Reserves have,
         to the Knowledge of CLJ and CSL, been maintained in accordance with the
         documents governing the Mortgage Loans and the Capital Leases.

                     (c) SECTION 3.20(c) of the Disclosure Schedule contains a
         true, accurate and complete description of all Working Capital as of
         July 13, 2001, and the Working Capital has, to the Knowledge of CLJ and
         CSL, been maintained in accordance with the Operating Agreements.

         3.21. BROKER'S OR FINDER'S FEE.

         Except for Deutsche Banc Alex. Brown, no agent, broker, Person or firm
acting on behalf of CLJ or CSL is, or will be, entitled to any fee, commission
or broker's or finder's fees from CLJ or any Acquired Company, or from any
Person controlling, controlled by, or under common control with CLJ or any
Acquired Company, in connection with this Agreement or any of the transactions
contemplated hereby.

         3.22. SUPPLEMENTS TO DISCLOSURE SCHEDULE.

         From time to time prior to the Closing Date, CLJ will promptly
supplement or amend the Disclosure Schedule with respect to any matter arising
which, if existing or occurring at the date of this Agreement would have been
required to have been set forth in the Disclosure Schedule or which is necessary
to correct the information set forth therein which has been rendered inaccurate.
The delivery of any such supplement or amendment shall not in any way constitute
a waiver by SNH of any requirement that the representations and warranties of
CLJ and CSL be true and correct on the date of this Agreement and on the Closing
Date or of any of the conditions set forth in SECTION 6, provided that the
disclosure in any such supplement or amendment of any matter arising after the
date of this Agreement shall not form the basis of a claim for misrepresentation
or breach of a representation under SECTION 7.

                                      -23-

<PAGE>

                                   SECTION 4.

               REPRESENTATIONS AND WARRANTIES OF SNH AND ACQ. SUB

         SNH and ACQ. SUB each hereby represent and warrant to CLJ and CSL as
follows:

         4.1. DUE ORGANIZATION, GOOD STANDING AND POWER.

         SNH is a real estate investment trust duly organized, validly existing
and in good standing under the laws of the State of Maryland and has all
requisite power and authority to own, lease and operate its properties and to
carry on its business as now being conducted. ACQ. SUB is a Maryland real estate
investment trust, duly organized, validly existing and in good standing under
the laws of the State of Maryland and has all requisite power and authority to
own, lease and operate its properties and to carry on its business as now being
conducted.

         4.2. AUTHORIZATION AND VALIDITY OF AGREEMENT.

         Each of SNH and ACQ. SUB has full power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution, delivery and performance of
this Agreement by each of SNH and ACQ. SUB, and the consummation by it of the
transactions contemplated hereby, have been duly authorized and approved by its
Board of Trustees. No other action on the part of SNH or ACQ. SUB is necessary
to authorize the execution, delivery and performance of this Agreement by SNH or
ACQ. SUB and the consummation of the transactions contemplated hereby. This
Agreement has been duly executed and delivered by SNH and ACQ. SUB and is a
valid and binding obligation of SNH and ACQ. SUB, enforceable against SNH and
ACQ. SUB in accordance with its terms, except that (a) such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors' rights generally and
(b) the availability of the remedy of specific performance or injunctive or
other forms of equitable relief may be subject to equitable defenses and would
be subject to the discretion of the court before which any proceeding therefor
may be brought.

         4.3. CONSENTS AND APPROVALS; NO VIOLATIONS.

         Except for any filings required under the HSR Act, Consents required
for healthcare Permits, and Consents required in connection with the Lease, none
of the execution, delivery or performance of this Agreement by SNH or ACQ. SUB,
or the consummation by SNH or ACQ. SUB of any of the transactions contemplated
hereby will (i) conflict with or result in any breach of any provision of the
Organizational Documents of SNH or ACQ. SUB, (ii) require any Consent of any
Governmental Entity, or (iii) violate any Contract, Law, Order or Permit
applicable to SNH, ACQ. SUB or any of their properties or assets, excluding from
the foregoing clauses (ii) and (iii), such Consents, violations, breaches or
defaults which would not, individually or in the aggregate, have a material
adverse effect on SNH or ACQ. SUB.

                                      -24-
<PAGE>

         4.4. FINANCIAL STATEMENTS.

         The audited consolidated balance sheets of SNH and its Subsidiaries as
at December 31, 2000, and the related consolidated statements of income and cash
flows for the fiscal year then ended, complete and correct copies of which have
been furnished to CLJ, present fairly, in all material respects, the
consolidated financial condition and results of operations and cash flows of SNH
and its Subsidiaries as at such date and for such fiscal year, as the case may
be.

         4.5. BANKRUPTCY.

         None of SNH, ACQ. SUB or their Subsidiaries are now, or have in the
past three years has been: a debtor in any bankruptcy or similar proceeding,
insolvent, made an assignment for the benefit of creditors, or the subject of a
receivership. None of SNH, ACQ. SUB or any of their Subsidiaries is
contemplating any of the foregoing or is aware of any credible threat by any
third party to file an involuntary bankruptcy petition against any of them.

         4.6. LITIGATION.

         Neither SNH nor ACQ. SUB has received written notice of and, to the
Knowledge of SNH and ACQ. SUB, no action or proceeding is pending or threatened
and no investigation looking toward such an action or proceeding has begun,
which (a) questions the validity of this Agreement or any action taken or to be
taken pursuant thereto; (b) will have a material adverse effect on SNH or ACQ.
SUB; or (c) result in or subject SNH or ACQ. SUB to a material liability.

         4.7. BROKER'S OR FINDER'S FEE.

         Except for UBS Warburg LLC, no agent, broker, Person or firm acting on
behalf of SNH or ACQ. SUB is, or will be, entitled to any fee, commission or
broker's or finder's fees from SNH or ACQ. SUB or from any Person controlling,
controlled by, or under common control with, SNH or ACQ. SUB in connection with
this Agreement or any of the transactions contemplated hereby.

                                   SECTION 5.

                  ACCESS AND TRANSACTIONS PRIOR TO CLOSING DATE

         5.1. ACCESS TO INFORMATION CONCERNING PROPERTIES AND RECORDS.

                     (a) Between the date of this Agreement and the Closing
         Date, CLJ and CSL shall, and shall cause each Acquired Company to, upon
         reasonable notice, afford SNH, and its counsel, accountants,
         consultants, financing sources and other authorized representatives,
         reasonable access, during normal business hours, to employees of CLJ
         familiar with the business of the Acquired Companies and the
         Properties, to perform due diligence investigations and to examine the
         books of account and records of the Acquired Companies, including,
         without limitation, all Contracts affecting the Properties, and make
         copies thereof, at such reasonable times as SNH or its representatives
         may request by notice to CLJ (which notice may be oral). No such
         investigation shall affect the

                                      -25-
<PAGE>

         representations and warranties made by CLJ and CSL in this Agreement.
         Each of CLJ and CSL agrees to cause its officers and the employees of
         CLJ, in a manner consistent with the fulfillment of their ongoing
         duties and obligations, to furnish such data and other information and
         respond to such inquiries as SNH and its representatives shall from
         time to time reasonably request.

                     (b) Between the date of this Agreement and the Closing
         Date, SNH shall, upon reasonable notice, afford CLJ, and its counsel,
         accountants, consultants, financing sources and other authorized
         representatives, access to employees of SNH familiar with the business
         of SNH and ACQ. SUB, to perform due diligence investigations and to
         examine the books of account and records of SNH and ACQ. SUB, and make
         copies thereof, at such reasonable times as CLJ or its representatives
         may request by notice to SNH (which notice may be oral). No such
         investigation shall affect the representations and warranties made by
         SNH or ACQ. SUB in this Agreement. SNH agrees to cause its officers and
         the employees of SNH and ACQ. SUB, in a manner consistent with the
         fulfillment of their ongoing duties and obligations, to furnish such
         data and other information and respond to such inquiries as CLJ and its
         representatives shall from time to time reasonably request.

                     (c) Unless otherwise required by Law, SNH shall keep
         confidential, and cause its counsel, accountants, consultants and other
         authorized representatives to keep confidential, any nonpublic
         information obtained pursuant to this SECTION 5.1; notwithstanding the
         foregoing, however, SNH shall not be required to keep confidential
         information that (i) is already in its possession (unless such
         information has been received from CLJ pursuant to the Confidentiality
         Agreement among CLJ, SNH, HPT and HRPT Properties Trust dated December
         5, 2000, as amended by a letter dated July 31, 2001), or (ii) becomes
         generally available to the public other than as a result of a
         disclosure by SNH, HPT or HRPT Properties Trust, or (iii) becomes
         available to SNH on a non-confidential basis from a source other than
         an Acquired Company or CLJ (provided that SNH has no Knowledge that
         such source obtained such information subject to confidentiality
         restrictions).

                     (d) Unless otherwise required by Law, CLJ shall keep
         confidential, and cause its counsel, accountants, consultants and other
         authorized representatives to keep confidential, any nonpublic
         information obtained pursuant to this SECTION 5.1; notwithstanding the
         foregoing, however, CLJ shall not be required to keep confidential
         information that (i) is already in its possession (unless such
         information has been received from SNH pursuant to the Confidentiality
         Agreement between CLJ and SNH dated February 20, 2001), or (ii) becomes
         generally available to the public other than as a result of a
         disclosure by CLJ or an Acquired Company, or (iii) becomes available to
         CLJ on a non-confidential basis from a source other than SNH (provided
         that CLJ has no Knowledge that such source obtained such information
         subject to confidentiality restrictions).

                                      -26-
<PAGE>

         5.2. TITLE MATTERS.

         Prior to the execution of this Agreement, SNH has ordered from American
Title Company (the "TITLE COMPANY") and directed the Title Company promptly to
deliver to SNH and CLJ a preliminary title commitment, having an effective date
after the date of this Agreement, for an ALTA extended owner's policy of title
insurance with respect to each of the Properties, together with complete and
legible copies of all instruments and documents referred to as exceptions to
title (collectively, the "TITLE COMMITMENTS").

         On or before September 30, 2001 (which date shall be extended for an
additional period of fifteen days upon the written request of SNH, provided that
SNH is proceeding in good faith), SNH shall give CLJ notice of any title
exceptions (other than Permitted Liens) which adversely affect any of the
Properties in any material respect and as to which SNH reasonably objects, and
CLJ shall, within ten Business Days of its receipt of such notice, notify SNH
whether CLJ elects to take such action as may be required to cause such
exceptions to be removed from the Title Commitments. If CLJ elects to remove the
title exception objected to by SNH, such title exception shall be removed from
the Title Commitment at or prior to Closing. If CLJ elects not to remove the
title exception, SNH shall, within five Business Days of its receipt of notice
of CLJ's election not to remove the title exception, elect whether to terminate
this Agreement. If SNH does not so terminate this Agreement, the objected to
exception shall become a Permitted Lien.

         5.3. SURVEY MATTERS.

         Prior to the execution of this Agreement, SNH has arranged for the
preparation of an ALTA survey with respect to each of the Properties (the
"SURVEYS"), by a licensed surveyor in the jurisdiction in which each of the
Properties is located, which (i) contains an accurate legal description, (ii)
shows the exact location, dimension and description (including applicable
recording information) of all utilities, easements, encroachments and other
physical matters affecting such Property, the number of striped parking spaces
located thereon and all applicable building set-back lines, (iii) states whether
the applicable Property is located within a 100-year flood plain and (iv)
includes a certification in a form reasonably acceptable to SNH, addressed to
SNH, the Title Company and any other persons requested by SNH. SNH will deliver
a copy of each Survey promptly to CLJ.

         On or before September 30, 2001 (which date shall be extended for an
additional period of fifteen days upon the written request of SNH, provided that
SNH is proceeding in good faith), SNH shall give CLJ notice of any matters shown
on the Surveys (other than Permitted Liens) which adversely affect any of the
Properties in any material respect and as to which SNH reasonably objects, and
CLJ shall, within ten Business Days of its receipt of such notice, notify SNH
whether CLJ elects to take such action as may be required to cause such matter
to be remedied. If CLJ elects to remedy the matter objected to by SNH, such
matter shall be remedied at or prior to Closing. If CLJ elects not to remedy
such matter, SNH shall, within five Business Days of its receipt of notice of
CLJ's election not to remedy the matter, elect whether to terminate this
Agreement. If SNH does not so terminate this Agreement, the objected to
exception shall become a Permitted Lien.

                                      -27-
<PAGE>

         5.4. ENVIRONMENTAL AND ENGINEERING REPORTS.

         Prior to the date of this Agreement, CLJ has delivered to SNH, all
environmental audits, evaluations, assessments, studies or tests and engineering
reports (with respect to roofs, electric, mechanical and structural elements of
the Properties) in their possession. After the date hereof, SNH may arrange for
the preparation of additional environmental audits, evaluations, assessments,
studies or tests and engineering reports with respect to any of the Properties.
SNH will direct each firm preparing such audit or report to deliver a copy of
such audit or report promptly to CLJ.

         On or before September 30, 2001 (which date shall be extended for an
additional period of fifteen days upon the written request of SNH, provided that
SNH is proceeding in good faith), SNH shall give CLJ notice of any matters shown
thereon which adversely affect any of the Properties in any material respect and
as to which SNH reasonably objects, and CLJ shall, within ten Business Days of
its receipt of such notice, notify SNH whether CLJ elects to take such action as
may be required to cause such matter to be remedied. If CLJ elects to remedy the
matter objected to by SNH, such matter shall be remedied at or prior to Closing,
or, if such matter cannot be completed by Closing, CLJ shall promptly begin such
remediation and diligently pursue completion through and, if necessary, after
Closing. If CLJ elects not to remedy such matter, SNH shall, within five
Business Days of its receipt of notice of CLJ's election not to remedy the
matter, elect whether to terminate this Agreement.

         5.5. CONDUCT OF THE BUSINESS OF THE ACQUIRED COMPANIES PENDING THE
CLOSING DATE.

         Except as specifically contemplated by this Agreement, or as set forth
in SECTION 5.5 of the Disclosure Schedule, or as required in connection with
obtaining the New Loan, and unless CLJ obtains SNH's prior written approval in
each instance, until the earlier of (i) the termination of this Agreement or
(ii) the Closing Date:

         (1) CLJ shall and shall cause each Acquired Company to conduct its
operations only according to its ordinary and usual course of business
consistent with past practice and shall use all commercially reasonable efforts
to preserve intact their current business operations, maintain their material
Contracts, and maintain satisfactory relationships with lessors, lessees,
suppliers, customers, joint venture partners and others having business
relationships with them; and

         (2) no Acquired Company shall:

                     (a) except as required by SECTION 5.6, make any change in
         or amendment to its Organizational Documents other than amendments to
         change the name of an Acquired Company or amendments or other changes
         that are ministerial or immaterial to such Acquired Company;

                     (b) issue or sell, or authorize the issuance or sale of,
         any shares of its capital stock or any other equity securities, or
         issue or sell, or authorize the issuance or sale of, any securities
         convertible into, or options, warrants or rights to purchase or
         subscribe to, or enter into or create any Contract with respect to the
         issuance or sale of, any shares of its capital stock or any other
         equity securities, or make any other changes in its capital structure;

                                      -28-
<PAGE>

                     (c) sell or pledge or agree to sell or pledge any stock or
         other equity interest owned by it in any other Person;

                     (d) declare, pay or set aside any dividend or other
         distribution or payment with respect to, or split, combine, redeem or
         reclassify, or purchase or otherwise acquire, any shares of its capital
         stock or its other securities; provided the Acquired Companies (i)
         shall pay a dividend or other distribution to CLJ in an aggregate
         amount equal to the proceeds (after reduction for expenses) of the New
         Loan required by SECTION 5.8, (ii) may make distributions of net income
         to CLJ and (iii) may upstream all cash in the CSL Subsidiaries and CCC
         Boynton to CLJ;

                     (e) enter into any Contract which is reasonably expected to
         involve payment or receipts by any Acquired Company in excess of
         $100,000 during any twelve month period, or, in cases where the
         Acquired Company is the party responsible for such payment, which is
         not terminable without penalty upon 30 days notice, provided, however,
         that nothing in this SECTION 5.5 shall be deemed to prohibit (i) MSLS
         as agent for any Acquired Company from entering into any such Contract
         on behalf of such Acquired Company to the extent contemplated by the
         Operating Agreements or (ii) CSL or any CSL Subsidiary from purchasing
         an interest rate cap or other hedge device in respect of the GMAC
         Mortgage Loans out of monies held as part of the Mortgage Reserves for
         such purpose, and the remaining balance of such part of the Mortgage
         Reserves, if released, may be distributed or paid to CLJ;

                     (f) grant any options to purchase common stock or provide
         for compensation or fringe benefits to any of its directors or
         officers; enter into any employment, consulting or severance agreement
         or arrangement with any Person;

                     (g) other than in the ordinary course of business and draws
         taken under CLJ's corporate lines of credit, transfer, lease, license,
         guarantee, sell, mortgage, pledge, dispose of, encumber or subject to
         any Lien (except as contemplated by SECTION 5.7(b)) any of the
         Properties or any other material assets or incur or modify any
         indebtedness or other material liability; issue any debt securities or
         assume, guarantee or endorse or otherwise as an accommodation become
         responsible for the obligations of any Person; or make any loan or
         other extension of credit;

                     (h) sell, assign, transfer, license or modify or amend any
         rights to any intellectual property owned by or licensed to any
         Acquired Company, except in the ordinary course of business consistent
         with past practice;

                     (i) agree to the settlement of any material claim or
         litigation, other than settlements agreed to by MSLS on behalf of any
         Acquired Company to the extent contemplated by the Operating
         Agreements;

                     (j) make or rescind any material Tax election or settle or
         compromise any material Tax liability (except as permitted to MSLS in
         the ordinary course of business and in accordance with the Operating
         Agreements);

                                      -29-
<PAGE>

                     (k) make any material change in its accounting principles,
         practices or methods;

                     (l) (A) incur any indebtedness for borrowed money or
         guarantee any such indebtedness of another Person (except as
         contemplated by SECTION 5.7(b)) or (B) make any loans or advances to
         any other Person, other than to CSL or any CSL Subsidiary; provided,
         however, that CSL and its Subsidiaries may make draws under the Bankers
         Trust Line, in any amount, provided that such draws are repaid at or
         prior to Closing;

                     (m) pay, discharge or satisfy any liabilities other than
         the payment, discharge or satisfaction of any liabilities in the
         ordinary course of business if now due and payable and consistent with
         past practice;

                     (n) delay or postpone the payment of accounts payable or
         other liabilities, other than in the ordinary course of business
         consistent with past practice;

                     (o) other than such actions as are permitted to be taken by
         MSLS in the ordinary course of business and in accordance with the
         Operating Agreements, take any action, engage in any transaction or
         enter into any agreement which could reasonably be expected to cause
         (A) any of the conditions in SECTION 6 not to be satisfied, or (B) a
         Material Adverse Effect;

                     (p) other than in the ordinary course of business, and
         except for such actions as may be taken by MSLS in the ordinary course
         of business and in accordance with the Operating Agreements, modify,
         amend or terminate any material Contract to which it is a party or
         waive any of its material rights or claims; or

                     (q) agree, in writing or otherwise, to take any of the
         foregoing actions.

         5.6. CONVERSION OF CERTAIN ACQUIRED COMPANIES.

         On or before the date the Acquired Companies make a distribution or pay
a dividend of the proceeds of the New Loan to CLJ, and subject to the receipt of
applicable Consents under the Mortgage Loans, the Unsecured Loans, the Capital
Leases and the Ground Leases and from partners of the relevant entities, each of
the Acquired Companies listed in SECTION 5.6 of the Disclosure Schedule shall be
reorganized as a business trust organized under the laws of the State of
Maryland so that each such Acquired Company (as reorganized) shall for United
States federal income and (to the extent allowed under applicable Law) state and
local income tax purposes be classified as a disregarded entity that is not
separate from its owner pursuant to Treasury Regulations Section 301.7701-3;
PROVIDED that if, after the date hereof, CLJ identifies a material state or
local tax liability that would be incurred by CLJ if an identified Acquired
Company were to be reorganized as a business trust organized under the laws of
the State of Maryland, such Acquired Company shall instead be reorganized as a
Delaware limited liability company that would be classified as a disregarded
entity that is not separate from its owner pursuant to Treasury Regulations
Section 301.7701-3 unless SNH shall agree to indemnify CLJ against such tax
liability. None of CLJ, CSL or any Acquired Company shall take or permit any
action to materially modify such tax classification.

                                      -30-
<PAGE>

         5.7. COOPERATION.

                     (a) Subject to the terms and conditions provided herein,
         each of CLJ, CSL, ACQ. SUB and SNH shall, and CLJ shall cause each
         Acquired Company to, cooperate and use their reasonable best efforts to
         take, or cause to be taken, all appropriate action, and to make, or
         cause to be made, all filings necessary, proper or advisable under
         applicable Laws to consummate and make effective the transactions
         contemplated by this Agreement, including, without limitation, all
         their reasonable best efforts to obtain, prior to the Closing Date, all
         Permits and Consents as are necessary for consummation of the
         transactions contemplated by this Agreement.

                     (b) Each of CLJ and CSL shall, and CLJ shall cause each
         Acquired Company to, and SNH shall, and shall cause ACQ. SUB to,
         cooperate and use their reasonable best efforts to take, or cause to be
         taken, all appropriate action, and to execute and deliver, or cause to
         be executed and delivered all such instruments and documents necessary
         or desirable in connection with the New Loan, on such business terms as
         are reasonably acceptable to each of CLJ and SNH and evidenced by
         instruments and documents which are substantially the same as those
         evidencing the GMAC Mortgage Loans.

                     (c) Each of CLJ and CSL shall, and CLJ shall cause each
         Acquired Company to conduct negotiations with MSLS relating to capital
         expenditure budgets required by the Operating Agreements for each of
         the Properties for fiscal year 2002, jointly with SNH and ACQ. SUB.

                     (d) SNH shall cooperate with CLJ in providing all necessary
         information concerning SNH and its Subsidiaries (i) as required by
         applicable Law including, without limitation, audited financial
         statements for CLJ to distribute to its shareholders in connection with
         seeking approval of the transactions contemplated by this Agreement and
         in connection with other reports required to be filed by CLJ with the
         Securities and Exchange Commission and (ii) to the extent required in
         connection with obtaining any Consents (including Consents under the
         Mortgage Loans, the Unsecured Loans, the Capital Leases and the Ground
         Leases) required to consummate the transactions contemplated hereby and
         to obtain the New Loan.

                     (e) CLJ and CSL shall and CLJ shall cause each Acquired
         Company to cooperate with SNH in providing all necessary information
         concerning CLJ and its Subsidiaries (i) as required by applicable Law,
         including, without limitation, additional unaudited and audited
         financial statements in connection with the distribution by SNH to its
         shareholders of the equity of the Tenant and other reports required to
         be filed by SNH with the Securities and Exchange Commission and (ii) to
         the extent required in connection with obtaining any Consents
         (including Consents under the Mortgage Loans, the Unsecured Loans, the
         Capital Leases and the Ground Leases) required to consummate the
         transactions contemplated hereby and to obtain the New Loan.

                     (f) If the Consent of HMC, as guarantor of the Unsecured
         Loan in respect of the Leisure Park Community, identified as item 31 in
         SECTION 3.12(a)(ii) of the

                                      -31-
<PAGE>

         Disclosure Schedule, pursuant to a Guaranty Agreement dated December 1,
         1997 in favor of Marine Midland Bank, is required to permit the
         transactions contemplated by this Agreement, SNH will agree to replace
         HMC as the guarantor of such Unsecured Loan. If such replacement is not
         permitted, CLJ will use commercially reasonable efforts to obtain the
         Consent of HMC prior to Closing, if required. If SNH does not replace
         HMC as the guarantor, SNH shall indemnify CLJ for the liability of CLJ
         to HMC (if any) to reimburse HMC for payments made by HMC as guarantor.

                     (g) SNH agrees to replace CLJ as guarantor or indemnitor,
         as the case may be under the several Guaranties of Recourse Obligations
         and Environmental Indemnity Agreements (each dated July 3, 2000 or July
         28, 2000) each executed by CLJ for the benefit of GMAC in respect of a
         GMAC Mortgage Loan, subject to the Consent of GMAC. If such Consent is
         not obtained by the Closing Date with respect to any such Guaranty of
         Recourse Obligations or Environmental Indemnity Agreement, SNH agrees
         to indemnify CLJ against any payment made or required to be made by it
         as guarantor or indemnitor after the Closing Date in accordance with
         the terms of such Guaranty of Recourse Obligations or Environmental
         Indemnity Agreement.

         5.8. DIVIDENDS; DISTRIBUTIONS.

         The Acquired Companies will declare and pay dividends and/or make
distributions to CLJ in an aggregate amount equal to the proceeds (after
reduction for transaction expenses) of the New Loan not later than one Business
Day prior to the Closing Date. Such dividends or other distributions shall be
treated by the Parties as "distributions" to CLJ for federal income tax purposes
under Sections 301, 857(a)(2), and 857(d)(3) of the Code, and under Treasury
Regulations 1.1502-13 and 1.1502-33. Solely for federal income (and, to the
extent allowable under applicable Law, state and local) tax purposes, such
dividends or other distributions shall not be treated by the Parties as part of
the Purchase Price.

         5.9. NO SOLICITATION OF OTHER OFFERS.

                     (a) Until this Agreement has been terminated in accordance
         with SECTION 8 (and the payments, if any, required to be made by CLJ in
         connection with such termination pursuant to SECTION 8.2 have been
         made), none of CLJ, CSL, any of their respective Affiliates, nor any of
         their respective officers (or other senior management employees),
         directors, representatives, consultants, investment bankers, attorneys,
         accountants and other agents (collectively, the "REPRESENTATIVES")
         shall Knowingly (i) encourage, solicit, initiate or facilitate the
         making of, or take any other action to facilitate any inquiries or the
         making of any proposal that constitutes, or may reasonably be expected
         to lead to, any Alternative Proposal, (ii) participate in any way in
         discussions or negotiations with, or furnish or disclose any nonpublic
         information to, any Person (other than SNH) in connection with any
         Alternative Proposal, or (iii) enter into any agreement, letter of
         intent or similar document contemplating or otherwise relating to any
         Alternative Proposal; provided, however, that this SECTION 5.9(a) shall
         not prohibit CLJ, CSL or the Representatives from: (i) complying with
         all applicable laws, rules and regulations, including Rules 14d-9 and
         14e-2 under the Securities Exchange Act of 1934, as amended (the
         "EXCHANGE ACT") or publicly disclosing the existence of an Alternative
         Proposal to

                                      -32-
<PAGE>

         the extent required by applicable law, or (ii) furnishing non-public
         information to, or entering into discussions or negotiations with, or
         accepting an Alternative Proposal from, any person or entity in
         connection with an unsolicited bona fide written proposal or proposals
         from any person or entity relating to an Alternative Proposal if CLJ
         determines in good faith based upon the advice of counsel that such
         action is required in order for CLJ to comply with its fiduciary
         obligations under the MGCL. If CLJ or CSL shall receive any offer to
         purchase (or any request for non-public information concerning CSL's
         assets in connection with a potential offer to purchase such assets),
         which it determines it must respond to, it shall (i) inform SNH that an
         offer or request has been received, and (ii) furnish to SNH the
         identity of the offeror or Person making the request, and a description
         of the material terms thereof.

                     (b) As used herein, "ALTERNATIVE PROPOSAL" shall mean (i)
         any written proposal or offer from any Person relating to any direct or
         indirect acquisition or purchase of a substantial amount of assets of
         any Acquired Company or of any class of equity securities of any
         Acquired Company (including any transaction in the nature of a
         management acquisition or "going private" transaction involving the
         Acquired Companies), (ii) any tender offer or exchange offer that, if
         consummated, would result in any Person beneficially owning any shares
         of equity securities of any Acquired Company, (iii) any merger,
         consolidation, business combination, sale of substantially all the
         assets, recapitalization, liquidation, dissolution or similar
         transaction effecting the transfer of any Acquired Company or (iv) any
         other transaction that relates to the Acquired Companies, the
         consummation of which could reasonably be expected to impede, interfere
         with, prevent or materially delay the purchase of the CSL Stock, the
         CCC Boynton Stock or the CCC Senior Living Stock contemplated hereby or
         any other transaction that relates to the Acquired Companies that could
         reasonably be expected to dilute materially the benefits to SNH of the
         transactions contemplated hereby; PROVIDED, HOWEVER, that no proposal
         or offer or other transaction described in any of clauses (i) through
         (iii) above that occurs after the eighteen month period referred to in
         Section 2.6 and that involves one of the Communities or CSL
         Subsidiaries or CCC Boynton that was excluded from the transaction in
         accordance with SECTION 6.1(c) shall constitute an Alternative
         Proposal.

         5.10. NOTIFICATION OF CERTAIN MATTERS.

         CLJ shall give prompt notice to SNH, and SNH shall give prompt notice
to CLJ, of the occurrence, or failure to occur, of any event, which occurrence
or failure to occur would be likely to cause any representation or warranty
contained in this Agreement to be untrue in any material respect at any time
from the date of this Agreement to the Closing. Each of CLJ and SNH shall give
prompt notice to the other party of any notice or other communication from any
third party alleging that the consent of such third party is or may be required
in connection with the transactions contemplated by this Agreement.

         5.11. HSR ACT FILING.

         SNH and CLJ shall, as promptly as practicable, file, or cause to be
filed, any required notification and report forms under the HSR Act with the
Federal Trade Commission (the

                                      -33-
<PAGE>

"FTC") and the Antitrust Division of the United States Department of Justice
(the "ANTITRUST DIVISION") in connection with the transactions contemplated by
this Agreement, and will use all commercially reasonable efforts to respond as
promptly as practicable to all inquiries received from the FTC or the Antitrust
Division for additional information or documentation and to cause the waiting
periods under the HSR Act to terminate or expire at the earliest possible date.
SNH and CLJ will each furnish to the other such necessary information and
reasonable assistance as the other may reasonably request in connection with its
preparation of necessary filings or submissions to any governmental or
regulatory agency, including, without limitation, any filings necessary under
the provisions of the HSR Act.

         5.12. PUBLIC ANNOUNCEMENTS.

         CLJ and SNH shall consult with each other before issuing any press
release or otherwise making any public statements with respect to the
transactions contemplated by this Agreement and shall not issue any such press
release or make any such public statement prior to such consultation and review
by the other party of such release or statement or without the prior consent of
the other party, which consent shall not be unreasonably withheld or delayed;
provided, however, that a party may, without the prior consent of the other
party, issue such press release or make such public statement as may be required
by Law or any listing agreement with a national securities exchange or automated
quotation system which CLJ or SNH is a party to, if it has used all reasonable
efforts to consult with the other party and to obtain such party's consent but
has been unable to do so in a timely manner.

         5.13. CLJ STOCKHOLDER APPROVAL.

         CLJ shall submit this Agreement and the transactions contemplated by
this Agreement for the approval by its stockholders at a special meeting of
stockholders to be held not later than March 31, 2002 (provided that such date
may be postponed to not later than June 30, 2002 upon the written request of
CLJ, provided that CLJ is proceeding in good faith), and, subject to the
fiduciary duties of its Board of Directors, CLJ shall recommend approval of this
Agreement and the transactions contemplated by this Agreement and shall use its
reasonable business efforts to obtain stockholder approval.

                                   SECTION 6.

                                   CONDITIONS

         6.1. CONDITIONS TO EACH PARTY'S OBLIGATIONS.

         The respective obligations of each Party to consummate the transactions
contemplated hereby shall be subject to the fulfillment or waiver (subject to
applicable Law) at or prior to the Closing of each of the following conditions:

                     (a) APPROVAL OF SALE OF STOCK. The sale of the CSL Stock to
         ACQ. SUB pursuant to this Agreement shall have been approved and
         adopted by the requisite vote of or consent by the holders of common
         stock of CLJ entitled to vote thereon in accordance with applicable Law
         and CLJ's Organizational Documents.

                                      -34-
<PAGE>

                     (b) HSR ACT. Any waiting period (and any extension thereof)
         under the HSR Act applicable to the transactions contemplated hereby
         shall have expired or been terminated and no action shall have been
         instituted by the Antitrust Division or the FTC challenging or seeking
         to enjoin the consummation of the transactions contemplated hereby,
         which action shall have not been withdrawn or terminated.

                     (c) CONSENTS. All Consents (i) listed in SECTION 6.1(c) of
         the Disclosure Schedule, (ii) that are required in connection with the
         Lease, (iii) that pertain to the conversion of certain of the Acquired
         Companies in accordance with Section 5.6, and (iv) relating to
         healthcare Permits (including Medicare and Medicaid provider
         agreements) shall have been obtained and shall (to the extent required)
         contemplate and permit the Lease; provided if, using commercial
         reasonable efforts, CLJ is unable to obtain one or more of the Consents
         referenced on SECTION 6.1(c) of the Disclosure Schedule for CCC
         Boynton, Lexington at Country Place or Lafayette at Country Place (A)
         the Purchase Price shall be reduced by the relevant Consent Reduction
         Amount, (B) the relevant CSL Subsidiary and Community shall be deleted
         from the definitions of Communities, Properties, CSL Subsidiaries and
         from the description of the Assets and (C) the Acquired Companies shall
         be relieved from and indemnified against any liabilities of CCC Boynton
         or CCC of Kentucky, Inc., as the case may be, on terms acceptable to
         SNH, whereupon the conditions of obtaining those Consents (subject to
         the provisions of SECTION 2.6) is deemed waived. To the extent
         modifications to the Lease are reasonably required to obtain any
         Consent required pursuant to this Agreement, so long as such
         modifications do not (taking into account the plan of SNH to spin off
         Tenant as a separate public company) affect the qualification of SNH or
         any Subsidiary of SNH as a "real estate investment trust" or a
         "qualified REIT subsidiary", as the case may be, under the Code, SNH
         will not, and will cause Tenant not to, unreasonably decline to make
         such modifications.

                     (d) INJUNCTION. No preliminary or permanent injunction,
         judgment or other order shall have been issued by any federal, state or
         foreign court or by any Governmental Entity and be in effect on the
         Closing Date which prohibits, restrains, restricts or enjoins the
         consummation of the transactions contemplated by this Agreement.

                     (e) STATUTES. No federal, state or foreign statute, law,
         rule, regulation, executive order, judgment, decree or order of any
         kind shall have been enacted, entered, promulgated or enforced by any
         court or Governmental Entity which prohibits, restrains, restricts or
         enjoins the consummation of the transactions contemplated by this
         Agreement or has the effect of making the transactions contemplated by
         this Agreement illegal.

                     (f) TAX ALLOCATION AGREEMENT. CLJ, CSL, the Acquired
         Companies, ACQ. SUB and SNH shall have entered into a Tax Allocation
         Agreement in the form of EXHIBIT D.

                     (g) MARRIOTT AGREEMENTS. The Marriott Agreements shall be
         in full force and effect on the Closing Date (except for the
         Noncompetition Agreement and the Transition Agreements, so long as such
         agreements have been terminated without

                                      -35-
<PAGE>

         expense or liability to any of the Acquired Companies); MI, MSLS and
         HMC, as the case may be, shall have given their Consent to the
         assignment of the Operating Agreements to Tenant, the assignment of the
         Pooling Agreements to CSL, the assignment of the MI Indemnity Agreement
         to SNH and given such other Consents as are required in connection with
         the transactions contemplated by this Agreement. CLJ and CSL, on the
         one hand, and SNH, ACQ. SUB and Tenant, on the other, shall have fully
         complied with all applicable provisions of the Marriott Agreements;
         provided the Marriott Agreements shall have been amended to provide
         that neither SNH nor any Subsidiary of SNH shall be subject to any
         agreement not to compete or which would otherwise limit the conduct of
         their businesses and further provided that if, in connection with any
         Consent, MI, MSLS or HMC shall require any modification of or
         supplement to any of the Marriott Agreements or shall impose any other
         condition on their Consent, such modification, supplement or condition
         shall be in form and substance acceptable to SNH.

         6.2. CONDITIONS TO OBLIGATIONS OF CLJ AND CSL.

         The obligations of CLJ and CSL to consummate the transactions
contemplated hereby shall be subject to the fulfillment (or waiver by CLJ and
CSL) at or prior to the Closing of each of the following conditions:

                     (a) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of SNH and ACQ. SUB set forth in this Agreement shall be
         true and correct in all material respects as of the date of this
         Agreement and as of the Closing Date, provided, however, that such
         representations and warranties shall be deemed to be true and correct
         unless the failure or failures of such representations and warranties
         to be so true and correct, without regard to any materiality qualifiers
         contained therein, individually or in the aggregate, results or could
         reasonably be likely to result in a material adverse effect on the
         ability of SNH or ACQ. SUB to consummate the transactions contemplated
         by this Agreement.

                     (b) LEASE AMENDMENTS. The subleases (and the related pledge
         agreements) between CLJ and HPT listed in SECTION 6.2(b) of the
         Disclosure Schedule for the properties known as CYBM and RIBM hotels
         shall have been amended as provided in EXHIBIT E; the costs and
         expenses of HPT in connection therewith shall have been paid by SNH and
         the costs and expenses of HMC in connection therewith shall have been
         paid by CLJ.

                     (c) COVENANTS. SNH and ACQ. SUB shall have complied in all
         material respects with their respective obligations under the terms of
         this Agreement.

                     (d) CERTIFICATE. CLJ shall have received a certificate
         signed by the president and chief financial officer of SNH certifying
         to the fulfillment of the conditions set forth above in this SECTION
         6.2.

                     (e) OPINION OF COUNSEL. CLJ shall have received an opinion
         of Sullivan & Worcester LLP, counsel to SNH and ACQ. SUB, in form and
         substance reasonably acceptable to CLJ.

                                      -36-
<PAGE>

         6.3. CONDITIONS TO OBLIGATIONS OF SNH AND ACQ. SUB.

         The obligations of SNH and ACQ. SUB to consummate the transactions
contemplated hereby shall be subject to the fulfillment (or waiver by SNH) at or
prior to the Closing Date of each of the following conditions:

                     (a) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of CSL and CLJ set forth in this Agreement shall be true and
         correct as of the date of this Agreement and as of the Closing Date,
         provided, however, that such representations and warranties shall be
         deemed to be true and correct unless the failure or failures of such
         representations and warranties to be so true and correct, without
         regard to any materiality qualifiers contained therein, individually or
         in the aggregate, results or could reasonably be likely to result in a
         Material Adverse Effect.

                     (b) COVENANTS. CLJ and CSL shall have complied in all
         material respects with their obligations under the terms of this
         Agreement.

                     (c) ESTOPPEL CERTIFICATES. SNH shall have received estoppel
         certificates dated within sixty (60) days of the Closing Date executed
         by (i) each lender holding a Mortgage Loan, the lessor under the Ground
         Lease and each lessor under a Capital Lease, which shall specify the
         principal and interest balance outstanding and/or future rent(s), the
         amount of the Mortgage Reserves and other reserves held by such lender
         or lessor, and the date of the most recent payment thereunder, the
         prepayment premium (for the GMAC Mortgage Loans only), if any, and
         shall confirm whether a notice of default has been sent to the
         applicable borrower or lessee, and shall otherwise be in a form
         reasonably acceptable to SNH; and (ii) MI and/or MSLS with respect to
         each of the Operating Agreements, which shall specify the FF&E Reserves
         balance as of the end of the 2001 fiscal year and amounts due for owner
         funded capital expenditures for the 2001 fiscal year and the capital
         expenditures budget (including separately, those expenditures expected
         to be paid from the FF&E Reserve and those expected to be paid by
         owners) for the 2002 fiscal year, and shall confirm whether a notice of
         default has been sent to the applicable Acquired Company, and shall
         otherwise be in a form reasonably acceptable to SNH.

                     (d) TITLE INSURANCE; ABSENCE OF LIENS. The Title Company
         shall be prepared, subject only to payment of the applicable premiums,
         to issue title insurance policies, or endorsements thereto, to the
         Acquired Companies, insuring title to the Properties is vested in the
         Acquired Companies, pursuant to ALTA title insurance policies in form
         and substance reasonably satisfactory to SNH, subject only to the
         Permitted Liens, or such other exceptions as may be approved by SNH. No
         Liens shall exist on any Assets (including the CSL Stock, the CCC
         Boynton Stock and the CCC Senior Living Stock), except for Permitted
         Liens and Liens disclosed in SECTIONS 2.1 or 3.12(b) of the Disclosure
         Schedule, and the CSL Subsidiaries that guarantied the Bankers Trust
         Line shall have been released as guarantors thereunder.

                     (e) OPERATING AGREEMENTS. The Operating Agreements shall be
         in full force and effect on the Closing Date, the FF&E Reserves shall
         have been fully funded

                                      -37-
<PAGE>

         through the Closing Date as required by the Operating Agreements,
         Working Capital shall have been maintained in a manner consistent with
         past practice and shall be at customary levels on the Closing Date and
         all amounts due MI/MSLS with respect to any of the Properties, whether
         arising under the Operating Agreements or otherwise, shall have been
         paid in full on the Closing Date.

                     (f) MORTGAGE RESERVES. The Mortgage Reserves shall have
         been fully funded through the Closing Date as required by the Mortgage
         Loans and the Capitalized Leases.

                     (g) CONVERSION OF CERTAIN ACQUIRED COMPANIES. Not later
         than two Business Days prior to the Closing Date (and in any event
         prior to the closing of the New Loan) each of the Acquired Companies
         listed in SECTION 5.6 of the Disclosure Schedule shall have been
         reorganized as a business trust organized under the laws of the State
         of Maryland (or, subject to the proviso to the first sentence of
         SECTION 5.6, a Delaware limited liability company) in accordance with
         SECTION 5.6.

                     (h) CLOSING OF NEW LOAN. The New Loan shall have closed,
         and New Loan proceeds of not less than $150,000,000 and not more than
         $175,000,000 (before reduction for all transaction expenses associated
         with the New Loan) shall have been disbursed to one or more of the
         Acquired Companies, not later than two Business Days prior to the
         Closing Date.

                     (i) DIVIDENDS; DISTRIBUTIONS. The Acquired Companies shall
         have declared and paid dividends and/or made distributions to CLJ in an
         aggregate amount equal to the proceeds (after reduction for all
         transaction expenses associated with the New Loan) of the New Loan not
         later than one Business Day prior to the Closing Date.

                     (j) PRIOR TAX MATTERS AGREEMENTS. MI, MSLS, HMC and Host
         Marriott L.P., as the case may be, shall have consented to the
         assignment by CLJ of certain of its rights under the Prior Tax Matters
         Agreements to SNH pursuant to the Tax Allocation Agreement and shall
         have confirmed the Prior Tax Matters Agreements are in force and
         effect.

                     (k) WOODLANDS. The limited partnership interests in Panther
         Holdings Level I, L. P., a Delaware limited partnership ("PANTHER
         HOLDINGS") that are not owned by an Acquired Company on the date hereof
         shall either have been acquired by an Acquired Company prior to the
         Closing Date, or CLJ shall have entered into an agreement with SNH in
         form reasonably acceptable to SNH pursuant to which CLJ shall agree to
         indemnify SNH for 50% of the actual costs incurred by SNH or its
         Affiliates after the Closing Date to purchase or redeem such limited
         partnership interests in Panther Holdings; provided that CLJ's
         obligation to pay such costs shall be limited to $250,000.

                     (l) GABLES. CLJ shall have either paid the Contingent
         Purchase Price payable under Section 1.2.3 of the Agreement for
         Purchase and Sale for the Community known as Gables of Winchester dated
         as of December 10, 1997 on or prior to the Closing Date, or CLJ shall
         have entered into an agreement with SNH in form reasonably

                                      -38-
<PAGE>

         acceptable to SNH pursuant to which CLJ shall agree to indemnify SNH
         for any amounts payable or paid by SNH or its Affiliates after the
         Closing Date pursuant to such provision.

                     (m) CERTAIN RESIGNATIONS. The existing officers, directors
         and managers of each of the Acquired Companies shall have resigned
         effective as of the Closing Date (provided that any "independent"
         manager or director of any Acquired Company will only be required to
         resign if s/he is replaced with another qualified "independent" manager
         or director).

                     (n) CERTIFICATE. SNH shall have received a certificate
         signed on behalf of CLJ and CSL by their respective chief executive
         officers and chief financial officers certifying to the fulfillment of
         the conditions set forth above in this SECTION 6.3.

                     (o) OPINION OF COUNSEL. SNH shall have received an opinion
         of Arnold & Porter, counsel to CLJ, in form and substance reasonably
         acceptable to SNH.

                                   SECTION 7.

                     NATURE AND SURVIVAL OF REPRESENTATIONS
                  AND WARRANTIES; INDEMNIFICATIONS; TAX MATTERS

         7.1. SURVIVAL OF REPRESENTATIONS, WARRANTIES, ETC.

         All representations and warranties of the parties set forth in this
Agreement, and the rights of the parties to seek indemnification with respect
thereto, shall survive the Closing. Such representations and warranties, and the
rights of the parties to seek indemnification with respect thereto, shall
expire, except with respect to claims asserted prior to and pending at the time
of expiration, twelve (12) months following the Closing provided that the
representations and warranties contained in SECTIONS 3.1, 3.2, 3.3 and 3.4 shall
survive indefinitely (or if indefinite survival is not permitted by law, then
for the maximum period permitted by applicable law) and provided further that
the representations and warranties contained in SECTIONS 3.13 and 3.19 shall
survive until the expiration of the applicable statute of limitations (including
any waivers or extensions thereof). All such representations and warranties
shall be deemed to have been given and made on the date hereof and as of the
Closing Date.

         7.2. CLJ'S AGREEMENT TO INDEMNIFY.

                     (a) Subject to SECTION 7.1, CLJ shall defend, indemnify and
         hold harmless SNH, its Affiliates and their respective officers,
         trustees, employees and agents (the "SNH INDEMNITEE"), from and against
         and in respect of any and all losses, damages, liabilities,
         deficiencies, taxes, costs and expenses including, without limitation,
         interest, penalties, and reasonable attorney's fees and expenses
         (collectively, "LOSSES"), asserted against, relating to, imposed upon
         or incurred by the SNH Indemnitee resulting from, arising out of, or in
         connection with: (i) any breach by CLJ or CSL of any of their
         respective representations or warranties contained in this Agreement;
         (ii) any breach by CLJ or CSL of any of their respective covenants,
         agreements or obligations contained in

                                      -39-
<PAGE>

         this Agreement and (iii) any and all actions, suits, proceedings,
         claims, demands, assessments and judgments incident to any of the
         foregoing.

                     (b) Anything in this SECTION 7 to the contrary
         notwithstanding: (i) no amounts of indemnity shall be payable as a
         result of a claim, unless and until the SNH Indemnitee has suffered,
         incurred, sustained or become subject to Losses with respect thereto in
         excess of $500,000 in the aggregate, and (ii) the indemnification
         obligations of CLJ in respect of the Losses indemnified against shall
         not exceed the Purchase Price.

         7.3. SNH'S AGREEMENT TO INDEMNIFY.

                     (a) Subject to SECTION 7.1, SNH shall defend, indemnify and
         hold harmless CLJ, its Affiliates and their respective, officers,
         directors, employees and agents (the "CLJ INDEMNITEE"), against and in
         respect of any Losses resulting from: (i) any breach by SNH of any of
         its representations or warranties contained in this Agreement; (ii) any
         breach by SNH of any of its covenants, agreements or obligations
         contained in this Agreement and (iii) any and all actions, suits,
         proceedings, claims, demands, assessments and judgments incident to any
         of the foregoing.

                     (b) Anything in this SECTION 7 to the contrary
         notwithstanding, no amounts of indemnity shall be payable as a result
         of a claim, unless and until the CLJ Indemnitee has suffered, incurred,
         sustained or become subject to Losses with respect thereto in excess of
         $500,000 in the aggregate.

         7.4. THIRD PARTY CLAIMS.

                     (a) Promptly after the receipt by any party hereto of
         notice of any claim, action, suit or proceeding of any third party
         which is subject to indemnification hereunder, such party ("INDEMNIFIED
         PARTY") shall give written notice of such claim to the party obligated
         to provide indemnification hereunder ("INDEMNIFYING Party"), stating
         the nature and basis of such claim and the amount thereof, to the
         extent known. Failure of the Indemnified Party to give such notice
         shall not relieve the Indemnifying Party from any liability which it
         may have on account of its indemnification obligation or otherwise,
         except to the extent that the Indemnifying Party is materially
         prejudiced thereby.

                     (b) The Indemnifying Party shall be entitled to elect to
         participate in the defense of and, if it so chooses, to assume the
         defense of such claim, action, suit or proceeding with counsel selected
         by the Indemnifying Party and reasonably satisfactory to the
         Indemnified Party. Upon any such election by the Indemnifying Party to
         assume the defense of such claim, action, suit or proceeding, the
         Indemnifying Party shall not be liable for any legal or other expenses
         subsequently incurred by the Indemnified Party in connection with the
         defense thereof, PROVIDED, HOWEVER, that (i) if the Indemnified Party
         shall have reasonably concluded that separate counsel is required
         because a conflict of interest would otherwise exist, then the
         Indemnified Party shall have the right to select separate counsel to
         participate in the defense of such action on its behalf, at the expense
         of the Indemnifying Party and (ii) the Indemnified Party may, at its
         option and at its own expense, participate in such defense and employ
         counsel separate from the counsel

                                      -40-
<PAGE>

         employed by the Indemnifying Party. The Indemnifying Party shall be
         liable for the reasonable fees and expenses of counsel employed by the
         Indemnified Party for any period in which the Indemnifying Party has
         not assumed the defense thereof (other than during any period in which
         the Indemnified Party failed to give the notice provided above). The
         parties shall use commercially reasonable efforts to minimize Losses
         from claims by third parties and shall act in good faith in responding
         to, defending against, settling or otherwise dealing with such claims,
         notwithstanding any dispute as to liability as between the parties
         under this SECTION 7. The parties shall also cooperate in any such
         defense, give each other full access to all non-privileged information
         relevant thereto and make employees and other representatives available
         on a mutually convenient basis to provide additional information and
         explanation of any material provided hereunder. Whether or not the
         Indemnifying Party shall have assumed the defense, the Indemnifying
         Party shall not be obligated to indemnify the Indemnified Party
         hereunder for any settlement entered into without the Indemnifying
         Party's prior written consent, which consent shall not be unreasonably
         withheld or delayed. Unless the sole relief is monetary damages which
         are payable in full by the Indemnifying Party, the Indemnifying Party
         shall not settle any claim without the prior written consent of the
         Indemnified Party, which consent shall not be unreasonably withheld or
         delayed.

         7.5. PURCHASE PRICE ADJUSTMENT.

         Any amount paid by CLJ on the one hand, or SNH on the other hand, to
the other pursuant to this SECTION 7 will be treated for federal income tax
purposes as an adjustment to the Purchase Price.

                                   SECTION 8.

                                   TERMINATION

         8.1. TERMINATION.

         This Agreement may be terminated at any time (subject to the provisions
of this SECTION 8.1) prior to the Closing Date:

                     (a) by mutual agreement of CLJ and SNH;

                     (b) by either SNH or CLJ, in writing, if for any reason
         (other than a default by the noticing Party) the Closing has not
         occurred by June 30, 2002, except that no Party shall have the right to
         terminate under this SECTION 8.1(b) if the conditions precedent to such
         Party's obligation to close have been or at Closing would be satisfied
         or have been waived by such Party and such Party has nonetheless failed
         or refused to close;

                     (c) by either SNH or CLJ in writing, if there shall be any
         order, writ, injunction or decree of any court or governmental or
         regulatory agency binding on SNH and/or CSL or CLJ, which prohibits or
         restrains SNH and/or CSL or CLJ from consummating the transactions
         contemplated by this Agreement, provided that SNH and CSL and CLJ shall
         have used their commercially reasonable efforts to have any such

                                      -41-
<PAGE>

         order, writ, injunction or decree lifted and the same shall not have
         been lifted within 90 days after entry, by any such court or
         governmental or regulatory agency;

                     (d) by CLJ in writing:

                         (i) if the conditions set forth in SECTIONS 6.1 and 6.2
                     shall not have been complied with or performed and such
                     noncompliance or nonperformance shall not have been cured
                     or eliminated (or by its nature cannot be cured or
                     eliminated) by SNH or otherwise by June 30, 2002;

                         (ii) if, by September 15, 2001, HPT shall not have
                     agreed, subject to the occurrence of the Closing, to
                     satisfy the condition contained in SECTION 6.2(b) pursuant
                     to an amendment acceptable to each of HPT and CLJ;

                         (iii) if SNH shall have (i) failed to perform in any
                     material respect its agreements contained in this Agreement
                     required to be performed by it on or prior to the Closing
                     Date or (ii) breached any of its representations or
                     warranties contained in this Agreement, provided that the
                     breach of such representations or warranties, without
                     regard to any materiality qualifiers contained therein,
                     individually or in the aggregate, results or could
                     reasonably be likely to result in a material adverse effect
                     on the ability of SNH or ACQ. SUB to consummate the
                     transactions contemplated by this Agreement;

                     (e) by SNH in writing:

                         (i) pursuant to SECTION 5.2, SECTION 5.3 or SECTION
                     5.4;

                         (ii) the conditions set forth in SECTIONS 6.1 and 6.3
                     shall not have been complied with or performed and such
                     noncompliance or nonperformance shall not have been cured
                     or eliminated (or by its nature cannot be cured or
                     eliminated) by CLJ or otherwise by June 30, 2002;

                         (iii) if CSL or CLJ shall have (i) failed to perform in
                     any material respect its agreements contained in this
                     Agreement required to be performed by it on or prior to the
                     Closing Date, or (ii) breached any of its representations
                     or warranties contained in this Agreement, provided that
                     the breach of such representations or warranties, without
                     regard to any materiality qualifiers contained therein,
                     individually or in the aggregate, results or could
                     reasonably be likely to result in a Material Adverse
                     Effect; or

                     (f) by either SNH or CLJ, in writing, (i) at any time
         following the rejection of this transaction by CLJ's shareholders or
         (ii) if CLJ accepts an Alternative Proposal.

                                      -42-
<PAGE>

         8.2. EFFECT OF TERMINATION.

                     (a) If this Agreement is terminated by either SNH or CLJ
         pursuant to SECTION 8.1, this Agreement shall become void and there
         shall be no further obligation on the part of any of SNH, CSL or CLJ
         (except for the provisions of SECTION 9.6 and as set forth in this
         SECTION 8.2, which shall survive such termination).

                     (b) If this Agreement is terminated by either SNH or CLJ
         pursuant to SECTION 8.1, except as provided in SECTION 8.2(g), the
         Deposit shall be paid to SNH.

                     (c) If CLJ or SNH terminates this Agreement because, on or
         prior to December 14, 2001, CLJ's shareholders have rejected this
         transaction at a meeting of stockholders called to approve this
         transaction, CLJ shall immediately pay to SNH $7,500,000 by wire
         transfer of immediately available funds to an account designated by
         SNH. If thereafter CSL or substantially all of the Assets are sold or
         contracted for sale to a third party on or before August 9, 2003, then,
         on the date of the closing of such sale, CLJ will pay SNH an additional
         $7,500,000.

                     (d) If CLJ or SNH terminates this Agreement because, after
         December 14, 2001, CLJ's shareholders have rejected this transaction at
         a meeting of stockholders called to approve this transaction, CLJ shall
         immediately pay to SNH $15,000,000 by wire transfer of immediately
         available funds to an account designated by SNH.

                     (e) If CLJ or SNH terminates this Agreement because CLJ
         accepts an Alternative Proposal, CLJ shall immediately pay SNH
         $15,000,000 by wire transfer of immediately available funds to an
         account designated by SNH.

                     (f) If SNH terminates this Agreement because any of the
         conditions set forth in SECTIONS 6.1 or 6.3 shall not have been
         complied with as a result of the willful acts or omissions of CLJ or an
         Acquired Company, CLJ shall immediately pay SNH a fee of $15,000,000 by
         wire transfer of immediately available funds to an account designated
         by SNH.

                     (g) If CLJ terminates this Agreement because any of the
         conditions set forth in SECTIONS 6.1 or 6.2 shall not have been
         complied with as a result of the willful acts or omissions of SNH or if
         SNH fails to close because it does not have sufficient funds to pay the
         Purchase Price (other than as a result of the failure to obtain or
         close the New Loan), the Deposit shall be paid to CLJ and SNH shall
         immediately pay CLJ an amount by wire transfer of immediately available
         funds to an account designated by CLJ which, together with the Deposit,
         represents a fee of $15,000,000.

                                      -43-
<PAGE>

                                   SECTION 9.

                            MISCELLANEOUS PROVISIONS

         9.1. NOTICES.

         Except where oral notice is specifically provided for herein, all
notices, communications and deliveries required or permitted by this Agreement
shall be made in writing signed by the Party making the same, shall specify the
Section of this Agreement pursuant to which it is given or being made, and shall
be deemed given or made (i) on the date delivered if delivered by telecopy or in
person, (ii) on the third Business Day after it is mailed if mailed by
registered or certified mail (return receipt requested) (with postage and other
fees prepaid), or (iii) on the day after it is delivered, prepaid, to an
overnight express delivery service that confirms to the sender delivery on such
day, as follows:

         To SNH:

                  Senior Housing Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attn:  David J. Hegarty, President and Chief Operating Officer
                  Telecopy No.: (617) 796-8349

         with a copy to (which shall not constitute notice):

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attn:  Richard Teller
                  Telecopy No.: (617) 338-2880

                                      -44-
<PAGE>

         To CSL or CLJ:

                  c/o Crestline Capital Corporation
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Tracy M. J. Colden, Senior Vice President and
                      General Counsel
                  Telecopy No.: (240) 694-2040

         with a copy to (which shall not constitute notice):

                  c/o Crestline Capital Corporation
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Larry K. Harvey, Senior Vice President and Treasurer
                  Telecopy No.: (240) 694-2286

or to such other representative or at such other address of a Party as such
Party may furnish to the other Party by notice similarly given.

         9.2. SCHEDULES AND EXHIBITS.

         The Schedules, Exhibits and all documents expressly referred to in this
Agreement, are incorporated into this Agreement and are made a part of this
Agreement as if set out in full.

9.3.     COMPUTATION OF TIME.

         Whenever the last day for the exercise of any privilege or the
discharge of any duty under this Agreement shall fall upon a day other than a
Business Day, the Party having such privilege or duty may exercise such
privilege or discharge such duty on the next succeeding day which is a regular
Business Day.

         9.4. ASSIGNMENT: SUCCESSORS IN INTEREST.

         No assignment or transfer by SNH, CSL or CLJ, of its rights and
obligations under this Agreement prior to the Closing shall be made except with
the prior written consent of the other Party. This Agreement shall be binding
upon and shall inure to the benefit of the Parties and their permitted
successors and assigns, and any reference to a Party shall also be a reference
to a permitted successor or assign.

         9.5. NO THIRD-PARTY BENEFICIARIES.

         With the exception of the Parties, there shall exist no right of any
person, including, without limitation, creditors of CSL or CLJ, to claim a
beneficial interest in this Agreement or any rights occurring by virtue of this
Agreement.

                                      -45-
<PAGE>

         9.6. EXPENSES.

         Except as otherwise provided below, CLJ (for itself and CSL) and SNH
(for itself and ACQ. SUB) shall each pay their own attorneys', accountants' and
other advisors' fees and costs, costs of internal personnel and filing fees
charged by a governmental authority with respect to filings made by such Party
in connection with the transactions contemplated by this Agreement. SNH shall
pay: (i) the GMAC Fee and all other fees and expenses incurred in connection
with the assumption or termination of the GMAC Mortgage Loans; (ii) all costs
for Permits relating to healthcare licensing of the Communities arising out of
the transactions contemplated by this Agreement (which shall not include costs
incurred in connection with such Permits not being in full force and effect as
of the date of this Agreement, which costs shall be paid by CLJ); (iii) all fees
and costs (including any Transfer Taxes) incurred in connection with the
conversion of any Subsidiaries pursuant to SECTION 5.6 or in connection with the
New Loan (without duplication for amounts by which the Purchase Price is
increased pursuant to SECTION 2.3(a)(b)(B)) or as required in connection with
the GMAC Mortgage Loans; (iv) the cost of any "Earnings and Profits" analysis;
and (v) any prepayment penalty or fee, or other fees and costs incurred in
connection with the prepayment of the Nomura Mortgage Loan. All other costs
associated with the transactions contemplated by this Agreement and not paid for
as provided above in this SECTION 9.6, including, without limitation, filing
fees paid in connection with filings under the HSR Act, Transfer Taxes, title
insurance premiums, costs of surveys and environmental reports, any fees or
costs paid to obtain the Consent of any Person (whether or not listed in SECTION
6.1(c) of the Disclosure Schedule), and the fees and costs incurred in
connection with preparing audited financial statements pursuant to SECTION
3.8(b) of this Agreement, shall be paid one-half by SNH and one-half by CLJ,
provided that fees paid to obtain the Consent of any Person (other than the GMAC
Fee) including without limitation, any fees paid or costs incurred in connection
with the matters set forth in SECTIONS 5.7(f) and 6.3(k), but excluding fees
paid by either SNH or CLJ and referred to in SECTION 6.2(b) shall not be
incurred by either Party (if included as a fee or cost to be paid under this
sentence) without the consent of the other, such consent not to be unreasonably
withheld.

         9.7. INVESTIGATIONS.

         The respective representations and warranties of CSL, CLJ and SNH
contained in this Agreement or in any Schedule, certificate, or other document
delivered by any Party prior to Closing shall not be deemed waived or otherwise
affected by any investigation made by a Party.

         9.8. NUMBER; GENDER.

         Whenever the context so requires, the singular number shall include the
plural and the plural shall include the singular, and the gender of any pronoun
shall include the other genders.

         9.9. CAPTIONS.

         The titles, captions and table of contents contained in this Agreement
are inserted in this Agreement only as a matter of convenience and for reference
and in no way define, limit, extend or describe the scope of this Agreement or
the intent of any provision of this Agreement. Unless otherwise specified to the
contrary, all references to Sections are references to Sections of this

                                      -46-
<PAGE>

Agreement and all references to Schedules and Exhibits are references to
Schedules and Exhibits to this Agreement.

         9.10. AMENDMENTS.

         To the extent permitted by Law, this Agreement may be amended by a
subsequent writing signed by all of the Parties upon the approval of the general
partner, board of directors or board of trustees, as the case may be, of each of
the Parties.

         9.11. INTEGRATION: WAIVER.

         This Agreement supersedes all negotiations, agreements and
understandings among the Parties with respect to the subject matter of this
Agreement (except (i) the, Confidentiality Agreement among CLJ, SNH, HPT and
HRPT Properties Trust dated December 5, 2000, as amended by a letter dated July
31, 2001 and (ii) by a Confidentiality Agreement dated as of February 20, 2001
between SNH and CLJ, each of which shall continue in full force and effect) and
constitutes the entire agreement among the Parties. The failure of any Party at
any time or times to require performance of any provisions of this Agreement
shall in no manner affect the right to enforce the same. No waiver by any Party
of any conditions, or of the breach of any term, provision, warranty,
representation, agreement or covenant contained in this Agreement, whether by
conduct or otherwise, in any one or more instances shall be deemed or construed
as a further or continuing waiver of any such condition or breach of any other
term, provision, warranty, representation, agreement or covenant contained in
this Agreement.

         9.12. GOVERNING LAW.

         This Agreement is to be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the law of the State of Maryland
(without giving effect to any laws or rules relating to conflicts of laws that
would cause the application of the laws of any jurisdiction other than the State
of Maryland).

         9.13. CONSENT TO JURISDICTION.

         To the extent permitted by applicable Law, the Parties absolutely and
irrevocably consent and submit to the nonexclusive jurisdiction of the courts of
the State of Maryland and of any federal court located in said jurisdiction in
connection with any actions or proceedings brought against a Party by any other
Party arising out of or relating to the transactions contemplated by this
agreement and hereby irrevocably agrees that all claims in respect of any such
action or proceeding may be heard and determined in any such court. Each Party
hereby waives and agrees not to assert in any such action or proceeding, in each
case, to the fullest extent permitted by applicable Law, any claim that (a) it
is not personally subject to the jurisdiction of any such court, (b) it is
immune from any legal process (whether through service or notice, attachment
prior to judgment, attachment in aid of execution, execution or otherwise) with
respect to it or its property, or (c) any such suit, action or proceeding is
brought in an inconvenient forum in any such action or proceeding. To the
fullest extent permitted by applicable Law, each Party hereby absolutely and
irrevocably waives trial by jury.

                                      -47-
<PAGE>

         9.14. SEVERABILITY.

         Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction will, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement, and any such prohibition or unenforceability in
any jurisdiction will not invalidate or render unenforceable such provision in
any other jurisdiction. To the extent permitted by Law, the Parties waive any
provision of law which renders any such provision prohibited or unenforceable in
any respect.

         9.15. COUNTERPARTS.

         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which shall together be considered
one and the same agreement, and it shall not be necessary in making proof of
this Agreement or the terms of this Agreement to produce or account for more
than one of such counterparts.

         9.16. SNH LIMITATION OF LIABILITY.

         The Declaration of Trust of SNH, a copy of which is duly filed with the
Department of Assessments and Taxation of the State of Maryland, provides that
the name "Senior Housing Properties Trust" refers to the trustees under such
Declaration of Trust collectively as trustees, but not individually or
personally, and that no trustee, officer, shareholder, employee or agent of SNH
shall be held to any personal liability, jointly or severally, for any
obligation of, or claim against, SNH. All persons dealing with SNH in any way
shall look only to the assets of SNH for the payment of any sum or the
performance of any obligation.

         9.17. ACQ. SUB LIMITATION OF LIABILITY.

         The Declaration of Trust of ACQ. SUB, a copy of which is duly filed
with the Department of Assessments and Taxation of the State of Maryland,
provides that the name "SNH/CSL Properties Trust" refers to the trustees under
such Declaration of Trust collectively as trustees, but not individually or
personally, and that no trustee, officer, shareholder, employee or agent of ACQ.
SUB shall be held to any personal liability, jointly or severally, for any
obligation of, or claim against, ACQ. SUB. All persons dealing with ACQ. SUB in
any way shall look only to the assets of ACQ. SUB for the payment of any sum or
the performance of any obligation

         9.18. CLJ LIMITATION OF LIABILITY.

         No director, officer, shareholder, employee or agent of CLJ shall be
held to any personal liability, jointly or severally, for any obligation of, or
claim against, CLJ or its Subsidiaries hereunder. All persons dealing with CLJ
in any way shall look only to the assets of CLJ for the payment of any sum or
the performance of any obligation.

         [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -48-
<PAGE>

         EXECUTED under seal as of the date first above written.

                         SENIOR HOUSING PROPERTIES TRUST

                         By: /s/ David J. Hegarty
                             --------------------------------------------------
                         Name: David J. Hegarty
                         Title: President

                         SNH/CSL PROPERTIES TRUST

                         By: /s/ David J. Hegarty
                             --------------------------------------------------
                         Name: David J. Hegarty
                         Title: President

                                      -49-
<PAGE>

                         CSL GROUP, INC.

                         By: /s/ James L. Francis
                             --------------------------------------------------
                         Name: James L. Francis
                         Title: President

                         CRESTLINE CAPITAL CORPORATION

                         By: /s/ Bruce D. Wardinski
                             --------------------------------------------------
                         Name: Bruce D. Wardinski
                         Title: Chief Executive Officer and President

                                      -50-

<PAGE>

                                                                       EXHIBIT A

                                                                     COMMUNITIES

<TABLE>
<CAPTION>
--------------------------------------------------------------------
                      PROPERTY                        STATE
--------------------------------------------------------------------
<S>                                            <C>
1       Forum at Memorial Woods                Texas
--------------------------------------------------------------------
2       Forum at Tucson                        Arizona
--------------------------------------------------------------------
3       Forum at Brookside                     Kentucky
--------------------------------------------------------------------
4       Forum at Overland Park                 Kansas
--------------------------------------------------------------------
5       Forum at Desert Harbor                 Arizona
--------------------------------------------------------------------
6       Forum at Park Lane                     Texas
--------------------------------------------------------------------
7       Forum at Deer Creek                    Florida
--------------------------------------------------------------------
8       Foulk Manor South                      Delaware
--------------------------------------------------------------------
9       Tiffany House                          Florida
--------------------------------------------------------------------
10      Fountainview                           Florida
--------------------------------------------------------------------
11      Coral Oaks                             Florida
--------------------------------------------------------------------
12      Springwood Court                       Florida
--------------------------------------------------------------------
13      Lafayette at Country Place             Kentucky
--------------------------------------------------------------------
14      Lexington at Country Place             Kentucky
--------------------------------------------------------------------
15      The Forum at Knightsbridge             Ohio
--------------------------------------------------------------------
16      The Forum at Pueblo Norte              Arizona
--------------------------------------------------------------------
17      The Forum at the Crossing              Indiana
--------------------------------------------------------------------
18      Forwood Manor                          Delaware
--------------------------------------------------------------------
19      Remington Club I                       California
--------------------------------------------------------------------
20      Remington Club II                      California
--------------------------------------------------------------------
21      The Montebello on Academy              New Mexico
--------------------------------------------------------------------
22      Foulk Manor North                      Delaware
--------------------------------------------------------------------
23      Millcroft                              Delaware
--------------------------------------------------------------------
24      Shipley Manor                          Delaware
--------------------------------------------------------------------
25      Park Summit at Coral Springs           Florida
--------------------------------------------------------------------
26      The Montevista at Coronado             Texas
--------------------------------------------------------------------
27      Myrtle Beach Manor                     South Carolina
--------------------------------------------------------------------
28      The Forum at Lincoln Heights           Texas
--------------------------------------------------------------------
29      Leisure Park                           New Jersey
--------------------------------------------------------------------
30      The Gables at Winchester               Massachusetts
--------------------------------------------------------------------
31      Forum at Woodlands                     Texas
--------------------------------------------------------------------
32      Boynton Beach                          Florida
--------------------------------------------------------------------
</TABLE>

<PAGE>

                                    EXHIBIT B

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "Escrow Agreement") is made as of August 9,
2001 by and among Senior Properties Housing Trust ("SNH"), Crestline Capital
Corporation ("CLJ"), and American Title Company (the "Escrow Agent").

                                  R E C I T A L:

         SNH and CLJ have entered into a Stock Purchase Agreement (the
"Agreement") dated as of August 9, 2001, an executed copy of which has been
provided to the Escrow Agent, pursuant to which, INTER ALIA, SNH/CLS Properties
Trust will acquire certain assets of CLJ on the terms and conditions set forth
in the Agreement.

         Pursuant to the Agreement, SNH has agreed to deposit $7,500,000 into
escrow upon execution of this Escrow Agreement subject to the terms and
conditions set forth in the Agreement and in this Escrow Agreement.

         NOW, THEREFORE, the parties agree as follows:

         SECTION 1. DEFINED TERMS. Terms not otherwise defined herein shall have
the respective meanings prescribed therefor in the Agreement. The following
terms are defined in this Escrow Agreement:

         "Bank" is Bank One, N.A..

         "Escrow Fund" is defined in Section 3 of this Escrow Agreement.

         SECTION 2. APPOINTMENT OF ESCROW AGENT. SNH and CLJ hereby appoint the
Escrow Agent as the escrow agent to hold the Escrow Fund in accordance with the
terms and conditions of this Escrow Agreement.

         SECTION 3. DELIVERY AND RECEIPT OF FUNDS. Simultaneously with the
execution of this Escrow Agreement, SNH shall deliver to the Escrow Agent the
sum of $7,500,000 in immediately available funds by wire transfer. The Escrow
Agent shall open an escrow account in the name of the Escrow Agent at the Bank
and shall deposit into such account such immediately available funds. The amount
so deposited, including accrued interest thereon, is referred to as the "Escrow
Fund." Receipt of the Escrow Fund from SNH is hereby acknowledged by the Escrow
Agent.

         SECTION 4. INVESTMENT OF ESCROW FUND. Until distributed and released in
accordance with the terms and conditions of this Escrow Agreement, the Escrow
Agent shall invest the Escrow Fund in a so-called "money market" deposit fund
with the Bank or in such other liquid, investment grade securities as may be
specified in writing by SNH and CLJ (CLJ's consent to

<PAGE>

SNH's choice of investment shall not be unreasonably withheld). The parties must
furnish any form W-9 and any authorization to invest required by Bank.

         SECTION 5. RELEASE OF ESCROW FUND.

                  (a) Upon receipt of joint written notice from SNH and CLJ,
Escrow Agent shall release all or such portion of the Escrow Fund as directed in
such notice.

                  (b) Upon receipt of written notice from SNH that the Agreement
has been terminated pursuant to Section 8.1 of the Agreement and not pursuant to
Section 8.2(f) of the Agreement, the Escrow Agent shall distribute and release
the Escrow Fund to SNH in accordance with wire transfer information contained in
the notice.

                  (c) Upon receipt of written notice from CLJ that the Agreement
has been terminated pursuant to Section 8.2(f) of the Agreement, the Escrow
Agent shall distribute and release the Escrow Fund to CLJ in accordance with
wire transfer information contained in the notice.

                  (d) Upon receipt of written notice from SNH directing Escrow
Agent to release all or a portion of the Escrow Fund to CLJ, Escrow Agent shall
release all or such portion of the Escrow Fund to CLJ as so directed.

         Any notice given pursuant to this Section 5 shall contain a
certification by the sending party that a copy of such notice has been
concurrently sent to the other party. On the later of the second business day
(by 2:00 PM, Eastern Standard Time) after receipt of the notice from the sending
party or the date specified in the notice, provided that the Escrow Agent shall
not have received a contrary instruction (by 2:00 PM, Eastern Standard Time on
the later of the second business day after receipt of the notice from the
sending party or the date specified in the notice) from the other party, the
Escrow Agent shall deliver the Escrow Fund to the party so specified. If the
Escrow Agent has received such a contrary instruction, it shall release the
Escrow Fund only pursuant to a joint direction in writing of SNH and CLJ or
pursuant to the decision of a court of competent jurisdiction. Upon distribution
and release of the Escrow Fund, this Escrow Agreement shall be deemed terminated
and the Escrow Agent shall be released and discharged from all further
obligations hereunder.

         SECTION 6. DUTIES OF ESCROW AGENT. The acceptance by the Escrow Agent
of its duties as such under this Escrow Agreement is subject to the following
terms and conditions, which SNH and CLJ hereby agree shall govern and control
with respect to the rights, duties, liabilities and immunities of the Escrow
Agent:

                  (a) The Escrow Agent acts hereunder as a depositary only, and
is not responsible or liable in any manner whatever for any investment made
pursuant to the provisions of Section 4 or any failure, refusal or inability of
the Bank to release or make payment pursuant to the Escrow Agent's direction of
said Escrow Fund, including by reason of insolvency or bankruptcy of the Bank.

                                      -2-

<PAGE>

                  (b) The Escrow Agent shall not be liable for acting upon any
written notice, request, waiver, consent, receipt or other instrument or
document which the Escrow Agent in good faith believes to be genuine and what it
purports to be.

                  (c) It is understood and agreed that the duties of the Escrow
Agent hereunder are purely ministerial in nature and that it shall not be liable
for any error of judgment, fact or law, or any act done or omitted to be done,
except for its own willful misconduct, breach of fiduciary duty, bad faith or
gross negligence or that of its officers, directors, employees and agents. The
Escrow Agent's determination as to whether an event or condition has occurred,
or been met or satisfied, or as to whether a provision of this Escrow Agreement
has been complied with, or as to whether sufficient evidence of the event or
condition or compliance with the provision has been furnished to it, shall not
subject the Escrow Agent to any claim, liability or obligation whatsoever, even
if it shall be found that such determination was improper and incorrect,
provided, only, that the Escrow Agent and its officers, directors, employees and
agents shall not have been guilty of willful misconduct, breach of fiduciary
duty, bad faith or gross negligence in making such determination.

                  (d) The Escrow Agent may consult with, and obtain advice from,
legal counsel including its own officers, employees and partners in the event of
any dispute or question as to the construction of any of the provisions hereof
or its duties hereunder, and it shall incur no liability and shall be fully
protected in acting in good faith in accordance with the opinion and
instructions of such counsel.

                  (e) In the event of any disagreement or lack of agreement
between SNH and CLJ of which the Escrow Agent has knowledge, resulting or which
might result in adverse claims or demands with respect to the Escrow Fund, the
Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with
any claims or demands on it with respect thereto until such matter shall be
resolved, and in so refusing, the Escrow Agent may elect to make no delivery or
other disposition of the Escrow Fund, and in so doing the Escrow Agent shall not
be or become liable in any way to either SNH or CLJ for its failure or refusal
to comply with such claims or demands, and it shall be entitled to continue so
to refrain from acting, and so to refuse to act, until all such claims or
demands (i) shall have been finally determined by a court of competent
jurisdiction, or (ii) shall have been resolved by the agreement of SNH and CLJ
and the Escrow Agent shall have been notified thereof in writing.

                  (f) The Escrow Agent may resign at any time upon giving ten
(10) days' notice to SNH and CLJ and may appoint a successor escrow agent
hereunder so long as such successor shall accept and agree to be bound by the
terms of this Escrow Agreement and shall be acceptable to SNH and CLJ. It is
understood and agreed that the Escrow Agent's resignation shall not be effective
until a successor escrow agent agrees to be bound by the terms of this Escrow
Agreement.

         SECTION 7. NO REPRESENTATIONS BY ESCROW AGENT. The Escrow Agent makes
no representation as to the validity, value, genuineness, negotiability or
collectibility of any security or other document or instrument held by or
delivered to or by it.

                                      -3-
<PAGE>

         SECTION 8. OBLIGATIONS OF ESCROW AGENT. The Escrow Agent shall be under
no obligation to institute or defend any actions, suits or legal proceedings in
connection herewith or take any other action likely to involve it in expense
unless first indemnified to its reasonable satisfaction.

         SECTION 9. EXPENSES. The reasonable out-of-pocket expenses (including,
without limitation, reasonable legal fees and disbursements) incurred by the
Escrow Agent in the performance of its duties hereunder shall be reimbursed
one-half by CLJ and one-half by SNH. Such reimbursement for out-of-pocket
expenses shall be made by cash payment to the Escrow Agent from time to time
upon its written request. The Escrow Agent shall have no right or lien with
respect to the Escrow Fund for payment of such expenses. Except as otherwise
herein or in the Agreement provided, each party shall pay its own expenses
incident to the performance or enforcement of this Escrow Agreement, including
all fees and expenses of its counsel for all activities of such counsel
undertaken pursuant to this Escrow Agreement. All parties recognize that the
cost to enforce or defend by Escrow Agent could be significant since the venue
is Maryland and they agree to pay all costs that the Escrow Agent may so incur,
including reasonable attorney's fees.

         SECTION 10. [Intentionally Omitted].

         SECTION 11. ASSIGNMENT; SUCCESSORS AND ASSIGNS. This Escrow Agreement
shall not be assignable by SNH or CLJ without the prior written consent of the
other.

         Nothing in this Escrow Agreement expressed or implied is intended to or
shall be construed to confer upon or create in any Person (other than the
parties hereto and their permitted successors and assigns) any rights or
remedies under or by reason of this Agreement, including without limitation any
rights to enforce this Escrow Agreement.

         SECTION 12. SPECIFIC PERFORMANCE; OTHER RIGHTS AND REMEDIES. Each party
recognizes and agrees that the other party's remedy at law for any breach of the
provisions of this Escrow Agreement would be inadequate and agrees that for
breach of such provisions, such party shall, in addition to such other remedies
as may be available to it at law or in equity or as provided in this Escrow
Agreement, be entitled to injunctive relief and to enforce its rights by an
action for specific performance to the extent permitted by applicable law. Each
party hereby waives any requirement for security or the posting of any bond or
other surety in connection with any temporary or permanent award of injunctive,
mandatory or other equitable relief. Nothing herein contained shall be construed
as prohibiting either party from pursuing any other remedies available to it for
such breach or threatened breach, including without limitation the recovery of
damages.

         SECTION 13 ENTIRE AGREEMENT. This Escrow Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements, arrangements, covenants, promises,
conditions, understandings, inducements, representations and negotiations,
expressed or implied, oral or written, between them as to such subject matter.

         SECTION 14. WAIVERS; AMENDMENTS. Anything in this Escrow Agreement to
the contrary notwithstanding, amendments to and modifications of this Escrow
Agreement may be made, required consents and approvals may be granted,
compliance with any term, covenant,

                                      -4-
<PAGE>

agreement, condition or other provision set forth herein may be omitted or
waived, either generally or in a particular instance and either retroactively or
prospectively with, but only with, the written consent of the party entitled to
the benefit thereof.

         SECTION 15. NOTICES. All notices and other communications which by any
provision of this Escrow Agreement are required or permitted to be given shall
be given in writing and shall be (a) sent by nationally recognized overnight
courier service, (b) sent by facsimile confirmed by sending (by nationally
recognized overnight courier service) written confirmation at substantially the
same time, or (c) personally delivered to the receiving party. All such notices
and communications shall be mailed, sent or delivered as follows:

         If to SNH, at:

                  Senior Housing Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attention: David J. Hegarty, President
                  Facsimile: 617-796-8349

         with a copy to (which shall not constitute notice):

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attention: Richard Teller
                  Facsimile: 617-338-2880

         If to CLJ, at:

                  c/o Crestline Capital Corporation.
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Tracy M. J. Colden, Senior Vice President and General
                       Counsel
                  Facsimile: (240) 694-2040

         with a copy to (which shall not constitute notice):

                  c/o Crestline Capital Corporation.
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Larry K. Harvey, Senior Vice President and Treasurer
                  Facsimile: (240) 694-2286

                                      -5-
<PAGE>

          with a copy to (which shall not constitute notice):

                  American Title Company (escrow agent)
                  6029 Belt Line Road Suite 250
                  Dallas, Texas 75254
                  Attn: Carole Badgett, Senior Vice President
                  Facsimile (972) 789-8029

or to such other person(s) or facsimile number(s) or address(es) as the party to
receive any such communication or notice may have designated by written notice
to the other party.

         SECTION 16. SEVERABILITY. If any provision of this Escrow Agreement
shall be held or deemed to be, or shall in fact be, invalid, inoperative,
illegal or unenforceable as applied to any particular case in any jurisdiction
or jurisdictions, or in all jurisdictions or in all cases, because of the
conflicting of any provision with any constitution or statute or rule of public
policy or for any other reason, such circumstance shall not have the effect of
rendering the provision or provisions in question invalid, inoperative, illegal
or unenforceable in any other jurisdiction or in any other case or circumstance
or of rendering any other provision or provisions herein contained invalid,
inoperative, illegal or unenforceable to the extent that such other provisions
are not themselves actually in conflict with such constitution, statute or rule
of public policy, but this Escrow Agreement shall be reformed and construed in
any such jurisdiction or case as if such invalid, inoperative, illegal or
unenforceable provision had never been contained herein and such provision
reformed so that it would be valid, operative and enforceable to the maximum
extent permitted in such jurisdiction or in such case.

         SECTION 17. COUNTERPARTS. This Escrow Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument, binding upon all
the parties hereto. In pleading or proving any provision of this Escrow
Agreement, it shall not be necessary to produce more than one of such
counterparts.

         SECTION 18. SECTION HEADINGS. The headings contained in this Escrow
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Escrow Agreement.

         SECTION 19. GOVERNING LAW. This Escrow Agreement is to be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of Maryland (without giving effect to any laws or rules
relating to conflicts of laws that would cause the application of the laws of
any jurisdiction other than the State of Maryland).

         SECTION 20. CONSENT TO JURISDICTION. To the extent permitted by
applicable law, the parties absolutely and irrevocably consent and submit to the
nonexclusive jurisdiction of the courts of the State of Maryland and of any
federal court located in said jurisdiction in connection with any actions or
proceedings brought against a party by any other party arising out of or
relating to this escrow agreement and hereby irrevocably agree that all claims
in respect of any such action or proceeding may be heard and determined in any
such court. Each party hereby waives and agrees not to assert in any such action
or proceeding, in each case, to the fullest

                                      -6-
<PAGE>

extent permitted by applicable law, any claim that (a) it is not personally
subject to the jurisdiction of any such court, (b) it is immune from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to it or
its property, or (c) any such suit, action or proceeding is brought in an
inconvenient forum in any such action or proceeding. To the fullest extent
permitted by applicable law, each party hereby absolutely and irrevocably waives
trial by jury.

         SECTION 21. LIMITATION OF SNH LIABILITY. The Declaration of Trust of
SNH, a copy of which is duly filed with the Department of Assessments and
Taxation of the State of Maryland, provides that the name "Senior Housing
Properties Trust" refers to the trustees under such Declaration of Trust
collectively as trustees, but not individually or personally, and that no
trustee, officer, shareholder, employee or agent of SNH shall be held to any
personal liability, jointly or severally, for any obligation of, or claim
against, SNH. All persons dealing with SNH in any way shall look only to the
assets of SNH for the payment of any sum or the performance of any obligation.

         SECTION 22. LIMITATION OF CLJ LIABILITY. No director, officer,
shareholder, employee or agent of CLJ shall be held to any personal liability,
jointly or severally, for any obligation of, or claim against, CLJ or its
Subsidiaries hereunder. All persons dealing with CLJ in any way shall look only
to the assets of CLJ for the payment of any sum or the performance of any
obligation.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -7-
<PAGE>

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

                           SENIOR HOUSING PROPERTIES TRUST

                           By:
                              -------------------------------------------------

                           CRESTLINE CAPITAL CORPORATION

                           By:
                              -------------------------------------------------

                           AMERICAN TITLE COMPANY, as Escrow Agent

                           By:
                              -------------------------------------------------

                                      -8-

<PAGE>

                                    EXHIBIT C

                                 PROMISSORY NOTE

$25,000,000                                                      [Closing Date]

         FOR VALUE RECEIVED, the undersigned, Senior Housing Properties Trust, a
Maryland real estate investment trust ("SNH"), hereby promises to pay to the
order of Crestline Capital Corporation, a Maryland corporation ("CLJ"), on or
before the earlier of (i) January 31, 2004 and (ii) the date the indebtedness
under a Loan Agreement dated as of September 1, 1995 by and among FGI Financing
I Corporation, Forum Ohio HealthCare, Inc. and Nomura Asset Capital Corporation
is repaid in full (the "Maturity Date"), the principal amount of Twenty-Five
Million Dollars ($25,000,000) with interest (computed on the basis of a 360 day
year and twelve 30 day months) on the unpaid principal hereof outstanding from
time to time at the annual rate of 10% ("Interest").

         In addition to all other rights contained in this promissory note (this
"Note"), if any Event of Default (as defined herein) occurs and as long as an
Event of Default continues, all obligations of SNH under this Note shall bear
interest at the annual rate of Interest plus 3% ("Default Rate"). The Default
Rate shall also apply from acceleration until the entire obligation or any
judgment thereon is paid in full.

         Payments of principal of and interest on this Note shall be made to CLJ
at 6600 Rockledge Drive, Suite 600, Bethesda, Maryland 20817, or to such other
address as CLJ may direct by written notice to SNH. Payments of principal of and
interest on this Note shall be made in lawful money of the United States of
America.

         This Note will rank not less than pari passu in priority of payment
with all other outstanding indebtedness for borrowed money of SNH, present or
future, except indebtedness for borrowed money which is preferred as a result of
being secured or as a matter of law.

         1. PAYMENT.

         1.1 PRINCIPAL AND INTEREST PAYMENT. Interest on this Note shall be
payable by SNH in arrears in equal installments of ninety days' Interest on the
last days of March, June, September and December each year. The principal of
this Note shall be paid by SNH in its entirety, together with any interest
accrued and unpaid thereon, on the Maturity Date.

         1.2 PREPAYMENT. This Note may be prepaid in whole or in part at any
time and from time to time without premium or penalty.

                                      -1-
<PAGE>

         1.3 APPLICATION OF PAYMENTS. All payments received on this Note shall
be applied in the following order: first, to pay all costs of collection of the
holder; then, to pay all accrued and unpaid Interest; and lastly to reduce the
outstanding principal balance of the Note.

         1.4 LATE CHARGE. If any payments are not timely made, SNH shall also
pay a late charge equal to 5% of each payment past due for 15 or more days.

         1.5 CERTIFICATE OF BORROWER. If at the time of any payment of Interest
SNH does not have public stockholders, then together with such payment, SNH
shall provide a certificate from its chief financial officer which states that
no Event of Default (as defined below) has occurred.

         2. DEFAULT.

         2.1 EVENTS OF DEFAULT. If any of the following events (each an "Event
of Default") shall have occurred:

                  (a) SNH fails to pay any installment of Interest on this Note
         when the same shall become due and payable which failure continues for
         5 days after notice from CLJ or fails to pay the principal of this Note
         when and as the same shall become due and payable;

                  (b) SNH defaults in the payment of interest on or the
         principal of any indebtedness for borrowed money, the outstanding
         principal amount of which exceeds $10,000,000, beyond any period of
         grace provided with respect thereto;

                  (c) The dissolution of, termination of existence of,
         appointment of a receiver for, assignment for the benefit of creditors
         of, or commencement of any bankruptcy or insolvency proceeding by or
         against SNH; or

                  (d) The sale of substantially all of the business or assets of
         SNH or any merger or consolidation of SNH with or into another entity,
         where the purchaser or surviving entity has a net worth, determined in
         accordance with generally accepted accounting principles of less than
         $50,000,000, without the prior written consent of CLJ;

then the unpaid balance of the principal of this Note, together with all
interest accrued thereon shall become immediately due and payable without
presentation, protest or notice of any kind.

         2.2 WAIVER BY SNH. To the fullest extent permitted by applicable law,
SNH hereby absolutely and irrevocably waives presentment, demand, notice,
protest, and all other demands, notices and suretyship defenses generally, in
connection with the delivery, acceptance, performance, default or enforcement of
or under this Note.

         2.3 COSTS AND EXPENSES OF COLLECTION. SNH covenants and agrees that if
default be made in any payment of principal of or interest on this Note, it will
pay to CLJ, such further amount as shall be sufficient to cover all costs and
expenses of collection, including reasonable attorneys' fees.

                                      -2-
<PAGE>

         3. MISCELLANEOUS PROVISIONS.

         3.1 GOVERNING LAW. This Note is to be construed and enforced in
accordance with, and the rights of SNH and CLJ shall be governed by, the law of
the State of Maryland (without giving effect to any laws or rules relating to
conflicts of laws that would cause the application of the laws of any
jurisdiction other than the State of Maryland).

         3.2 NOTICES. All notices, communications and deliveries required or
permitted by this Note shall be made in writing signed by the party making the
same, shall be effective upon receipt and shall be delivered by telecopy, by
hand, by registered or certified mail (return receipt requested) (with postage
and other fees prepaid) or by an overnight express delivery service, as follows:

         To SNH:

                  Senior Housing Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attn: David J. Hegarty, President and Chief Operating Officer
                  Telecopy No.: (617) 796-8349

         with a copy to (which shall not constitute notice):

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attn: Richard Teller
                  Telecopy No.: (617) 338-2880

                                      -3-
<PAGE>

         To CLJ:

                  c/o Crestline Capital Corporation
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Tracy M. J. Colden, Senior Vice President and
                      General Counsel
                  Telecopy No.: (240) 694-2040

         with a copy to (which shall not constitute notice):

                  c/o Crestline Capital Corporation
                  6600 Rockledge Drive, Suite 600
                  Bethesda, Maryland  20817
                  Attn: Larry K. Harvey, Senior Vice President and Treasurer
                  Telecopy No.: (240) 694-2286

or to such other representative or at such other address of a party as such
party may furnish to the other party by notice similarly given.

         3.3 SNH LIMITATION OF LIABILITY. The Declaration of Trust of SNH, a
copy of which is duly filed with the Department of Assessments and Taxation of
the State of Maryland, provides that the name "Senior Housing Properties Trust"
refers to the trustees under such Declaration of Trust collectively as trustees,
but not individually or personally, and that no trustee, officer, shareholder,
employee or agent of SNH shall be held to any personal liability, jointly or
severally, for any obligation of, or claim against, SNH. All persons dealing
with SNH in any way shall look only to the assets of SNH for the payment of any
sum or the performance of any obligation.

         EXECUTED under seal as of the date first above written.

                          SENIOR HOUSING PROPERTIES TRUST

                          By:
                             --------------------------------------------------

                                      -4-

<PAGE>

                                   EXHIBIT D

                            TAX ALLOCATION AGREEMENT

     TAX ALLOCATION AGREEMENT, dated as of _________, 2001, among Crestline
Capital Corporation, a Maryland corporation, and any successor thereto ("CLJ"),
Senior Housing Properties Trust, a Maryland real estate investment trust
("SNH"), CSL Group, Inc., an Indiana corporation, and any successor thereto
("CSL"), and their respective direct and indirect subsidiaries and affiliates.
References herein to a "party" (or "parties") to this Agreement shall refer to
CLJ, SNH, CSL, and where appropriate and the context so requires, their direct
and indirect subsidiaries and affiliates. Any capitalized term not defined
herein has the meaning given to it in the Stock Purchase Agreement.

     WHEREAS, CLJ and its subsidiaries, including CSL and its subsidiaries, have
joined in filing consolidated federal Tax Returns and certain consolidated,
combined or unitary state, local or foreign Tax Returns;

     WHEREAS, Host Marriott Corporation, a Delaware corporation ("Host
Marriott"), pursuant to a Distribution Agreement dated as of December 28, 1998
(the "Distribution Agreement"), distributed approximately 93.6% of the
outstanding common stock in CLJ on a PRO RATA basis to its stockholders (the
"Distribution");

     WHEREAS, in connection with the Distribution Agreement, Host Marriott and
CLJ entered into a Tax Sharing Agreement dated as of December 28, 1998 (the
"HM/CLJ Tax Sharing Agreement"), providing for allocations of and
indemnifications with respect to certain liabilities for Taxes of Host Marriott
and its subsidiaries and of CLJ and its subsidiaries;

     WHEREAS, in Section 3.(e) of the HM/CLJ Tax Sharing Agreement, CLJ was
assigned certain rights arising under a Tax Matters Agreement dated as of June
21, 1997 among Host

<PAGE>

Marriott, Marriott International, Inc. ("MII"), Marriott Senior Living Services,
Inc. ("Services"), HMC Senior Communities, Inc. and Forum Group, Inc. (the
"Forum/MI Tax Matters Agreement");

     WHEREAS, SNH, CLJ and CSL have entered into that certain Stock Purchase
Agreement, dated as of August __, 2001 (the "Stock Purchase Agreement"),
pursuant to which SNH through an acquisition subsidiary will acquire 100% of the
capital stock of CSL and all of the outstanding equity securities of CCC Boynton
Beach, Inc. and of CCC Senior Living Corporation; and

     WHEREAS, the parties hereto wish to provide for (i) allocations of, and
indemnifications against, certain liabilities for Taxes, including Income Taxes
and Other Taxes, (ii) the preparation and filing of Tax Returns on a basis
consistent with prior practice and the payment of Taxes with respect thereto,
and (iii) certain related matters;

     NOW THEREFORE, in consideration of their mutual promises, the parties
hereby agree as follows:

1. DEFINITIONS.

     When used herein the following terms shall have the following meanings:

     "Acquired Companies" -- as defined in Section 1.1 of the Stock Purchase
Agreement.

     "Affiliate" -- with respect to any corporation, partnership, limited
liability company, business trust or other entity (the "given entity"), (i) each
person, corporation, partnership, limited liability company, business trust or
other entity that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, the given entity,
provided that neither Host Marriott nor any subsidiary of Host Marriott shall be

                                      -2-
<PAGE>

considered an Affiliate of any party hereto, (ii) each corporation, partnership,
limited liability company, business trust or other entity in which the given
entity owns, directly or indirectly, through one or more intermediaries, at
least 50% of the value of all outstanding equity interests, (iii) any
partnership or limited liability company in which the given entity is the sole
general partner or the sole managing member, or (iv) any successor of any of the
above. For purposes of this definition, "control" means the possession, directly
or indirectly, of (i) 50% or more of the voting power or value of outstanding
equity interests, or (ii) the power to direct or cause the direction of the
management of an entity, whether by contract or otherwise.

     "Affiliated Group" -- an affiliated group of corporations within the
meaning of Code Section 1504(a) for the Taxable Period or, for purposes of any
state, local or foreign income tax matters, any consolidated, combined or
unitary group of corporations within the meaning of the corresponding provisions
of Tax law for the jurisdiction in question.

     "CLJ" -- as defined in the preamble to this Agreement.

     "CLJ Group" -- CLJ and each corporation that joins with CLJ in filing a
consolidated federal income tax return for CLJ's Taxable Period that includes
the Closing Date. For purposes of this Agreement, the CLJ Group shall exist from
the beginning of the day immediately after the Closing Date and shall exclude
any Acquired Company with respect to the period after the Closing Date.

     "CLJ Member" -- a corporation that was immediately before the Transaction a
Pre-Closing Member and is a member of the CLJ Group at the beginning of the day
immediately after the Closing Date.

                                      -3-
<PAGE>

     "CLJ Party" -- CLJ, each CLJ Member, and each Affiliate of CLJ or of a CLJ
Member, where affiliation is determined after the Closing Date.

     "Closing Date" -- the date on which the Transaction closes, as defined in
the Stock Purchase Agreement.

     "Code" -- the Internal Revenue Code of 1986, as amended, or any successor
thereto, as in effect for the Taxable Year in question.

     "Combined Jurisdiction" -- for any Taxable Period, any state, local or
foreign jurisdiction in which CLJ or a CLJ Affiliate (other than an Acquired
Company) is included in a consolidated, combined, unitary or similar return with
any Acquired Company for state, local or foreign Tax purposes.

     "CSL" -- as defined in the preamble to this Agreement.

     "Distribution" -- as defined in the preamble to this Agreement.

     "Distribution Agreement" -- as defined in the preamble to this Agreement.

     "Final Determination" -- (i) a decision, judgment, decree, or other order
by a court of competent jurisdiction, which has become final and unappealable;
(ii) a closing agreement or accepted offer in compromise under Code Sections
7121 or 7122, or comparable agreements under the laws of other jurisdictions;
(iii) any other final settlement with the IRS or other Taxing Authority; (iv)
the receipt of any refund; or (v) the expiration of an applicable statute of
limitations.

     "Forum/MI Tax Matters Agreement" - as defined in the preamble to this
Agreement.

     "Forum Tax Information" - as defined in the HM/CLJ Tax Sharing Agreement.

                                      -4-
<PAGE>

     "HM/CLJ Tax Sharing Agreement" - as defined in the preamble to this
Agreement.

     "Host Marriott" - as defined in the preamble to this Agreement.

     "Host Marriott Entity" or "Host Marriott Entities" - each or all of Host
Marriott and every Affiliate of Host Marriott immediately prior to the
Distribution.

     "Host Marriott Taxes" - any Taxes imposed upon or with respect to any Host
Marriott Entity (including Taxes so imposed under the terms of the Forum/MI Tax
Matters Agreement) for any Pre-Closing Taxable Period ending before, on or
including the Distribution Date, excluding all Taxes allocable to CLJ or any of
its Affiliates (including the Acquired Companies) under the terms of the HM/CLJ
Tax Sharing Agreement.

     "Host Marriott Tax Information" - any information relating or pertaining to
any Host Marriott Entity for any Pre-Closing Taxable Period ending before, on or
including the Distribution Date, but excluding (i) any such information in the
possession of CLJ, or in the possession of any Affiliate controlled by CLJ, or
in the possession of any of the Acquired Companies, on or before the Closing
Date, and (ii) any such information that is in, or may come into, the possession
of CLJ or any then Affiliate of CLJ at any time after the Closing Date.

     "Host Marriott Tax Return(s)" - any Tax Returns required to be filed by or
with respect to any Host Marriott Entity for any Pre-Closing Taxable Period
ending before, on or including the Distribution Date, excluding all Tax Returns
which CLJ is responsible for preparing or filing under the terms of the HM/CLJ
Tax Sharing Agreement.

     "Income Tax(es)" -- with respect to any entity, any and all Taxes based
upon or measured by net income, gross income, gross receipts or alternative
minimum taxable income, regardless of whether denominated an "income tax," a
"franchise tax," or otherwise, imposed by any

                                      -5-
<PAGE>

Taxing Authority, whether any such tax is imposed directly or through
withholding or otherwise, together with any interest thereon and any related
penalty, addition to tax or additional amount.

     "Income Tax Attribute" - any deduction, loss, adjustment, or other tax item
or attribute, other than an Income Tax Credit, that can be used by a taxpayer to
reduce its taxable income for purposes of determining its Income Tax liability
(assuming for these purposes that the taxpayer has sufficient taxable income to
fully utilize the deduction, loss or other tax attribute).

     "Income Tax Credit" - any credit, including without limitation any
investment tax credit, foreign tax credit, targeted jobs credit, research and
development credit, alternative minimum tax credit, or other credit, that can be
used by a taxpayer to reduce its Income Tax liability (assuming for these
purposes that the taxpayer has sufficient liability for Income Taxes to fully
utilize the credits).

     "Information Return(s)" -- with respect to any entity, any and all reports,
returns, declarations or other filings (other than Tax Returns) required to be
supplied to any Tax Authority.

     "IRS" -- the United States Internal Revenue Service.

     "MII" - as defined in the preamble to this Agreement.

     "Other Tax(es)" -- with respect to any entity, any license, business
privilege, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental (including under Code Section 59A), customs
duties, franchise, social security, unemployment, disability, real property,
personal property, intangibles, sales, use, transfer, registration, value added,
add-on minimum, or other tax of any kind whatsoever, whether any such tax is
imposed directly or through withholding or otherwise, together with any interest
thereon and any related

                                      -6-
<PAGE>

penalty, addition to tax or additional amount, provided, however, that the term
"Other Tax(es)" shall not include Income Tax(es) and shall not include Transfer
Taxes the responsibility for which is allocated in Section 9.6 of the Stock
Purchase Agreement.

     "Overdue Rate" -- a rate of interest per annum that equals the prime rate,
as reported in the Wall Street Journal for the period in which the Overdue Rate
is applicable, plus 2.00%.

     "Post-Closing Straddle Period" -- with respect to any party's Straddle
Period, the period beginning on the day immediately after the Closing Date and
ending on the last day of the party's Taxable Year in which the Closing Date
occurs.

     "Post-Closing Taxable Period" -- a party's Taxable Year that begins on or
after the day immediately after the Closing Date.

     "Pre-Closing Affiliate" -- any Affiliate of any Pre-Closing Member, where
affiliation is determined for all periods before the Closing Date.

     "Pre-Closing Group" -- CLJ and each corporation (including any Acquired
Company) that joins with CLJ in filing a consolidated federal income tax return
for CLJ's Taxable Period that includes the Closing Date. For purposes of this
Agreement, the Pre-Closing Group shall terminate at the close of business on the
Closing Date (except as otherwise provided in this Agreement).

     "Pre-Closing Member" -- a corporation (including any Acquired Company) that
was a member of the Pre-Closing Group.

     "Pre-Closing Straddle Period" -- with respect to any party's Straddle
Period, the period beginning on the first day of such Taxable Year and ending on
the close of business on the Closing Date.

                                      -7-
<PAGE>

     "Pre-Closing Taxable Period" -- a party's Taxable Year that ends at or
before the close of business on the Closing Date.

     "Representative" -- with respect to any person or entity, any of such
person's or entity's directors, officers, employees, agents, consultants,
accountants, attorneys and other advisors.

     "Services" - as defined in the preamble to this Agreement.

     "SNH Party" -- SNH and any Affiliate of SNH, where affiliation is
determined after the Closing Date.

     "Stock Purchase Agreement" -- as defined in the preamble to this Agreement.

     "Straddle Period" -- any party's Taxable Year beginning before and ending
after the close of business on the Closing Date.

     "Tax(es)" -- collectively, Income Tax(es) and Other Tax(es).

     "Taxable Period" -- a party's Pre-Closing Taxable Period, Post-Closing
Taxable Period or Straddle Period.

     "Taxable Year" -- a party's taxable year (which may be shorter than a full
calendar or fiscal year), year of assessment or similar period with respect to
which any Tax may be imposed.

     "Tax Benefit(s)" -- (i) in the case of an Income Tax Attribute, the sum of
(a) the amount of the Income Tax Attribute multiplied by the sum of (x) if the
Income Tax Attribute relates to a federal income Tax Return, the highest federal
corporate Income Tax rate, and if the Income Tax Attribute does not relate to a
federal income Tax Return, zero, and (y) highest applicable state corporate
Income Tax rate, and (b) any interest received with respect to any related Tax
refund or otherwise credited to the party that used the Income Tax Attribute;
(ii) in the case of an

                                      -8-
<PAGE>

Income Tax Credit, 100% of the amount of the Income Tax Credit, plus any
interest received with respect to any related Tax refund or otherwise credited
to the party that used the Income Tax Credit; and (iii) in the case of any Other
Tax, the amount by which the Tax liability of a corporation or other entity is
actually reduced for any Taxable Period, plus any interest received with respect
to any related Tax refund or otherwise credited to such corporation or entity.

     "Taxing Authority" -- the IRS and any other domestic or foreign
governmental authority responsible for the administration of any Tax.

     "Tax Practices" -- the most recently applied policies, procedures and
practices employed by CLJ or the Pre-Closing Group in the preparation and filing
of, and positions taken on, any Tax Returns of CLJ or any Pre-Closing Member or
Pre-Closing Affiliate for any Pre-Closing Taxable Period.

     "Tax Return(s)" -- all returns, reports, estimates, information statements,
declarations and other filings relating to, or required to be filed with a
Taxing Authority in connection with, the payments or refund of any Tax for any
Taxable Period.

     "Transaction" -- the transactions contemplated by the Stock Purchase
Agreement to occur at Closing.

     "Transfer Taxes" -- as defined in Section 1.1 of the Stock Purchase
Agreement.

2. OBLIGATIONS, RESPONSIBILITIES AND RIGHTS OF CLJ, CSL AND SNH.

     (a)  Preparation and Filing of Tax Returns

          (i)   BY CLJ. Except for any Host Marriott Tax Return(s), CLJ shall
                prepare and timely file (or cause to be prepared and timely
                filed):

                                      -9-
<PAGE>

               (A)  all Tax Returns and Information Returns of the Pre-Closing
                    Group, any Pre-Closing Member and any Pre-Closing Affiliate
                    that are required to be filed on or before the Closing Date;

               (B)  all Tax Returns and Information Returns of the Pre-Closing
                    Group, any Pre-Closing Member and any Pre-Closing Affiliate
                    for Pre-Closing Taxable Periods of the Acquired Companies
                    that are not required to be filed on or before the Closing
                    Date including, without limitation, CLJ's consolidated
                    federal Income Tax Return for its Taxable Year that includes
                    the Closing Date;

               (C)  except as provided in Section 2(a)(ii)(A), all Tax Returns
                    and Information Returns of the Pre-Closing Group, any
                    Pre-Closing Member and any Pre-Closing Affiliate for Taxable
                    Years of the Acquired Companies that include any Pre-Closing
                    Straddle Periods;

               (D)  except as provided in Section 2(a)(ii)(A), all state and
                    local Tax Returns and state and local Information Returns of
                    the Pre-Closing Group, any Pre-Closing Member and any
                    Pre-Closing Affiliate for Straddle Periods of the Acquired
                    Companies (for these purposes, the Pre-Closing Group shall
                    be deemed to exist for each such Straddle Period and, to the
                    extent not prohibited by applicable law, such state and
                    local Tax Returns and state and local Information Returns
                    shall be filed by treating each such Straddle Period as a
                    single Taxable Year);

                                      -10-
<PAGE>

               (E)  except as provided in Section 2(a)(ii)(A), all Tax Returns
                    and Information Returns of CLJ, the CLJ Group, any CLJ
                    Member, and any then Affiliate of any CLJ Member for all of
                    their Straddle Periods and all of their Post-Closing Taxable
                    Periods; and

               (F)  all Tax Returns and Information Returns not otherwise
                    required to be filed by CLJ pursuant to paragraphs (A), (B),
                    (C), (D) or (E) of this Section 2(a)(i) or by SNH pursuant
                    to Section 2(a)(ii).

          (ii)  BY SNH.  SNH shall prepare and timely file or shall cause to be
                prepared and timely filed:

               (A)  all Tax Returns and Information Returns of the SNH Parties
                    for all Straddle Periods of the Acquired Companies except in
                    any case that a jurisdiction requires or permits the filing
                    of a Tax Return or Information Return for a Straddle Period
                    of the Acquired Company that includes both one or more SNH
                    Parties and one or more CLJ Parties, unless SNH has notified
                    CLJ at least ninety (90) days before the initial due date of
                    such return that SNH will file such Tax Return or
                    Information Return, which notification, in the case of a Tax
                    Return or Information Return the inclusion in which of any
                    CLJ Party is permitted but not required, shall specify
                    whether SNH will include any such CLJ Party in such return.

                                      -11-
<PAGE>

               (B)  any federal Income Tax Return reporting income of any
                    Acquired Company for its Post-Closing Taxable Period
                    beginning on the first day immediately following the Closing
                    Date;

               (C)  all other Tax Returns and Information Returns for the SNH
                    Parties for any of their Post-Closing Taxable Periods
                    beginning on the first day immediately following the Closing
                    Date; and

               (D)  all Tax Returns and Information Returns of the SNH Parties
                    for any of their Post-Closing Taxable Periods (including
                    without limitation the Post-Closing Taxable Periods
                    described in Sections 2(a)(ii)(B) and (C), above).

     (b)  PROVISION OF FILING INFORMATION. With respect to any matter directly
          related to any Acquired Company, or any Tax Return or Information
          Return that is to be filed by any SNH Party or CLJ Party, each party
          to this Agreement shall cooperate and assist the other party in
          connection with the preparation and filing of all Tax Returns and
          Information Returns that are required to be filed by a specified party
          pursuant to Section 2(a), including providing the party required to
          file such Tax Returns and Information Returns with (i) all necessary
          filing information in a manner consistent with past Tax Practices
          (whether or not a Tax Return or Information Return has previously been
          filed with respect to any Acquired Company) and (ii) all other
          information reasonably requested in connection with the preparation of
          such Tax Returns and Information Returns by the party responsible for
          preparing and filing such returns, in each case promptly after such
          request (which shall be within fourteen (14) days after such request
          or, if not

                                      -12-
<PAGE>

          within such fourteen-day period, as soon as possible thereafter using
          all commercially reasonable efforts) and to the extent such
          information is in the possession of the party from which it is
          requested or can be obtained by the party for which it is requested
          with commercially reasonable efforts by that party. CLJ and SNH agree
          that (a) within 60 days after the Closing Date, CLJ shall provide SNH
          with all records, schedules, data, work product and other information
          then in the possession of CLJ (or any Affiliate of CLJ) that represent
          work done as of such date relating to the preparation of consolidated
          tax basis balance sheets for the Acquired Companies as of the Closing
          Date, (b) from and after 60 days after the Closing Date, CLJ shall
          provide SNH, within 14 days after SNH's request, any information in
          the possession of CLJ or its Affiliates reasonably deemed necessary by
          SNH (or SNH's Representative) to complete such consolidated tax basis
          balance sheets, and (c) CLJ shall assist, and cooperate with, SNH (or
          SNH's Representative) during the preparation of such consolidated tax
          basis balance sheets. Notwithstanding anything in this Section 2(b) to
          the contrary, CLJ shall not have any responsibility to provide to any
          SNH Party any Host Marriott Tax Information or Forum Tax Information,
          which information the SNH Parties shall seek directly from Host
          Marriott to the extent provided for in the Host Marriott Tax Matters
          Agreement (or from MII and Services pursuant to the Forum/MI Tax
          Matters Agreement), provided, however, that at SNH's written request,
          CLJ agrees to cooperate in good faith with the SNH Parties in their
          efforts to obtain such Host Marriott Tax Information (or Forum Tax
          Information) pursuant to the

                                      -13-
<PAGE>

          terms of the HM/CLJ Tax Sharing Agreement and/or the Forum/MI Tax
          Matters Agreement.

     (c)  TAXABLE YEAR. SNH and CLJ agree that, for all Tax purposes, (i) for
          the Pre-Closing Taxable Period of each Acquired Company that ends at
          the close of business on the Closing Date and for any other
          Pre-Closing Taxable Periods of each Acquired Company commencing after
          the Distribution Date, each Acquired Company shall be included in the
          consolidated federal Income Tax Return of the Pre-Closing Group for
          the Taxable Year that includes such Pre-Closing Taxable Period,
          subject to the "next day" rule set forth in Treas. Reg. Sec.
          1.1502-76(b)(1)(ii)(B) (and, to the extent permitted by law and
          Section 2(a) hereof, in all corresponding consolidated, combined or
          unitary state or other Income Tax Returns of the Pre-Closing Group, to
          the extent the Pre-Closing Group (or a portion of such group)
          previously filed or elected to file such consolidated, combined or
          unitary state or other Income Tax Returns) and (ii) each Acquired
          Company shall either begin a new Taxable Year for purposes of such
          federal income and, to the extent permitted by law, state or other
          Taxes, on the day immediately after the Closing Date or, in any such
          case, beginning on such day as such Acquired Company or its income
          shall be included in a Tax Return of SNH. The parties further agree
          that, to the extent permitted by applicable law, all federal, state or
          other Tax Returns (including Income Tax Returns and Other Tax Returns)
          and all Information Returns shall be filed consistently with this
          position; provided, however, that with respect to any Acquired Company
          that was taxed as a partnership for federal tax purposes, solely for
          purposes of determining the

                                      -14-
<PAGE>

          Taxable Period to which the Acquired Company's items of income,
          deduction, expense, loss, credit or other tax attributes are to be
          allocated, any Acquired Company that owns an interest in such Acquired
          Company shall be treated as selling or exchanging its entire interest
          in such Acquired Company immediately before the Closing and acquiring
          such interest at the beginning of the day immediately following the
          Closing Date, under the principles set forth in Treas. Reg. Sec.
          1.1502-76(b)(2)(vi).

     (d)  STRADDLE PERIOD TAXES.

          (i)   For purposes of this Agreement, pursuant to Sections 2(a)(ii)(B)
                and 2(c), federal Income Taxes for SNH and any Acquired Company
                will not be reported in any Straddle Period or allocated
                pursuant to this Section 2(d).

          (ii)  For purposes of this Agreement, Taxes of an Acquired Company
                (other than federal Income Taxes) for any Straddle Period of
                an Acquired Company shall be allocated between the
                Pre-Closing Straddle Period and Post-Closing Straddle Period
                in the following manner: (A) state and local Income Taxes
                shall be allocated between the Pre-Closing Straddle Period
                and Post-Closing Straddle Period based on the actual
                liability for Income Taxes of the Acquired Company after
                closing the books of the Acquired Company at the close of
                business on the Closing Date in a manner consistent with the
                reporting of federal taxable income pursuant to Sections
                2(a)(ii)(B) and 2(c), and further taking into account SNH's
                status as a "real estate investment trust" under the Code
                and the provisions of Section 856(i) of the Code, and other
                federal or state and local provisions

                                      -15-
<PAGE>

                concerning the Tax status of any SNH Party; and (B) Other Taxes
                shall be allocated between the Pre-Closing Straddle Period and
                Post-Closing Straddle Period on the basis of the actual
                transactions, events or activities (including, if applicable,
                days elapsed) that give rise to or create liability for such
                Other Taxes, and based on the periods with respect to which any
                Other Taxes that are imposed for the privilege of doing business
                may relate.

          (iii) SNH shall pay to CLJ, within fourteen (14) days after receipt of
                an executed Straddle Period Tax Return that has been prepared
                and filed by or on behalf of CLJ pursuant to Section 2(a)(i),
                the excess of (A) any amount allocated to any Acquired Company
                for its Post-Closing Straddle Period (based on the amount of Tax
                shown on such Tax Return, allocated as provided in Section
                2(d)(ii)) plus any amount allocated to all SNH Parties that are
                not Acquired Companies on such Tax Return over (B) the amount of
                any estimated taxes previously paid by or on behalf of any SNH
                Party after the Closing to the relevant Taxing Authority with
                respect to such Tax with respect to the applicable Taxable
                Period. CLJ shall pay to SNH, within fourteen (14) days after
                receipt of an executed Straddle Period Tax Return that has been
                prepared and filed by or on behalf of SNH pursuant to Section
                2(a)(ii), the excess of (A) any amount allocated to any Acquired
                Company for the Pre-Closing Straddle Period (based on the amount
                of Tax shown on such Tax Return, allocated as provided in
                Section 2(d)(ii)) plus any amount allocated to all CLJ Parties
                on such Tax

                                      -16-
<PAGE>

                Return over (B) the amount of any estimated Taxes previously
                paid by or on behalf of any Pre-Closing Member or Pre-Closing
                Affiliate to the relevant Taxing Authority with respect to such
                Tax with respect to the applicable Taxable Period.

     (e)  PAYMENT OF TAXES. CLJ shall pay (i) all Taxes (other than Host
          Marriott Taxes) shown to be due and payable on all Tax Returns filed
          by CLJ pursuant to Section 2(a)(i) hereof (except for any Taxes that
          are allocable to an Acquired Company for its Post-Closing Straddle
          Period under Section 2(d)(ii) or to an SNH Party that is not an
          Acquired Company, which Taxes shall be paid by SNH or CSL in the
          manner set forth in Section 2(d)(iii)), (ii) all Taxes (other than
          Host Marriott Taxes) that shall thereafter become due and payable with
          respect to all Tax Returns filed pursuant to Section 2(a)(i) for the
          applicable Taxable Periods as a result of a Final Determination
          (except for any Taxes that are allocable to an Acquired Company for
          its Post-Closing Straddle Period under Section 2(d)(ii) or to an SNH
          Party that is not an Acquired Company, which Taxes shall be paid by
          SNH or CSL in the manner set forth in Section 2(d)(iii)), (iii) all
          Taxes that are allocable to any Acquired Company for its Pre-Closing
          Straddle Period under Section 2(d)(ii) in the manner set forth in
          Section 2(d)(iii), and (iv) all Transfer Taxes for which CLJ is
          responsible under Section 9.6 of the Stock Purchase Agreement. SNH or
          CSL shall pay (i) all Taxes attributable to all Tax Returns filed by
          SNH or CSL pursuant to Section 2(a)(ii) hereof (except for any Taxes
          that are allocable to any Acquired Company for its Pre-Closing
          Straddle Period under Section 2(d)(ii) or to any CLJ Party, which
          Taxes shall be paid by CLJ in

                                      -17-
<PAGE>

          the manner set forth in Section 2(d)(iii)), including without
          limitation (a) federal Income Taxes of the SNH Parties for the
          Acquired Companies' Post-Closing Taxable Period beginning on the first
          day immediately following the Closing Date as contemplated by Section
          2(d)(i) and (b) all other Taxes of the SNH Parties for any of their
          Post-Closing Taxable Periods beginning on the first day immediately
          following the Closing Date, (ii) all Taxes that are allocable to any
          Acquired Company for its Post-Closing Straddle Period under Sections
          2(d)(ii) in the manner set forth in Section 2(d)(iii), and (iii) all
          Transfer Taxes for which SNH is responsible under Section 9.6 of the
          Stock Purchase Agreement.

     (f)  AMENDMENTS TO TAX RETURNS. No Tax Returns or Information Returns for
          any Pre-Closing Taxable Period or Straddle Period of any Acquired
          Company filed by CLJ or SNH may be amended without the consent of CLJ
          and SNH, which in each case shall not be unreasonably withheld;
          provided, however, that (i) SNH shall not be considered unreasonable
          in withholding such consent if such amendment would result in an
          increase in a Tax liability for which the SNH Parties have
          responsibility under this Agreement or would cause a material risk
          that SNH shall fail to qualify as a "real estate investment trust"
          under the Code (unless CLJ agrees to pay the SNH Parties an amount
          equal to the amount of such increase or to indemnify the SNH Parties
          for such failure to qualify, in which case a failure to consent will
          be considered unreasonable), (ii) CLJ shall not be considered
          unreasonable in withholding such consent if such amendment would
          result in an increase in a Tax liability for which CLJ has
          responsibility under this Agreement (unless SNH or CSL agrees to pay
          CLJ an amount equal to the amount

                                      -18-
<PAGE>

          of such increase, in which case a failure to consent will be
          considered unreasonable), (iii) CLJ shall not be required to seek the
          consent of SNH if such amendment would not result in any adjustment to
          any Income Tax Attributes or Income Tax Credits, would not result in
          any increase in the Tax liability of any SNH Party for each
          Post-Closing Straddle Period and Post-Closing Taxable Period, and
          would not create any material risk that SNH shall fail to qualify as a
          "real estate investment trust" under the Code.

     (g)  REFUNDS OF TAXES.

          (i)   CLJ shall be entitled to (a) any refund of Taxes and any Tax
                Benefits realized as a result of a Final Determination with
                respect to all Tax Returns filed by (or caused to be prepared
                and filed by) CLJ pursuant to Section 2(a)(i) (except that the
                SNH Parties shall be entitled to any refund of, or Tax Benefit
                related to, any Taxes that are allocable to any Acquired Company
                for its Post-Closing Straddle Period under Section 2(d)(ii) or
                to any SNH Party that is not an Acquired Company) and (b) any
                refund of, and any Tax Benefit related to, any Taxes that are
                allocable to an Acquired Company for its Pre-Closing Straddle
                Period under Section 2(d)(ii). The SNH Parties shall be entitled
                to (a) any refund of Taxes and any Tax Benefit realized as a
                result of a Final Determination with respect to all Tax Returns
                filed by (or caused to be prepared and filed by) any SNH Party
                pursuant to Section 2(a)(ii) (except that CLJ shall be entitled
                to any refund of, or Tax Benefit related to, any Taxes that are
                allocable to an Acquired Company for its Pre-Closing Straddle
                Period under Section 2(d)(ii) or to

                                      -19-
<PAGE>

                any CLJ Party) and (b) any refund of, and Tax Benefit related
                to, any Taxes that are allocable to an Acquired Company for its
                Post-Closing Straddle Period under Sections 2(d)(ii). Refunds
                attributable to a Tax Return shall be allocated between the
                Pre-Closing Straddle Period and Post-Closing Straddle Period and
                among the parties to such Tax Return on a basis consistent with
                the method used to allocate the Tax liability for such Tax
                Return under this Agreement. Notwithstanding the above, if and
                to the extent any refund of Taxes or other Tax Benefit for any
                Pre-Closing Taxable Period is required to be paid to Host
                Marriott pursuant to the HM/CLJ Tax Sharing Agreement or
                otherwise, none of CLJ, SNH or CSL (nor any Affiliate of any of
                them) shall be entitled to such refund of Tax or Tax Benefit.

          (ii)  If any CLJ Party receives a Tax refund or Tax Benefit to which
                any SNH Party is entitled pursuant to this Agreement, CLJ shall
                pay (in accordance with Section 4) the amount of such Tax refund
                or Tax Benefit (including any interest received thereon) to SNH
                within fourteen (14) days of the receipt thereof.

          (iii) If any SNH Party receives a Tax refund or Tax Benefit to which
                any CLJ Party is entitled pursuant to this Agreement, CSL or SNH
                shall pay (in accordance with Section 4) the amount of such Tax
                refund or Tax Benefit (including any interest received thereon)
                to CLJ within fourteen (14) days of the receipt thereof.

                                      -20-

<PAGE>

          (iv)  Each party shall bear its own expenses with respect to the
                determination and receipt of any Tax refund or Tax Benefit under
                this Section 2(g). In the event any applicable Taxing Authority
                later seeks to recover or require the return of all or any
                portion of such a Tax refund, then for purposes of this
                Agreement (a) the resulting proceedings shall be treated as an
                effort by the applicable Taxing Authorities to collect Taxes
                with respect to the Taxable Period to which the Tax refund
                relates, (b) any such recovery or return shall be treated as the
                payment of additional Taxes with respect to the applicable
                Taxable Period, and (c) the responsibility of the parties shall
                be governed by the provisions of this Agreement that relate to
                Taxes for the applicable Taxable Period.

     (h)  CARRYBACKS. None of SNH, CSL or CLJ shall file any carryback claim for
          federal Taxes or state, local or foreign Taxes in a Combined
          Jurisdiction for any SNH Party into a Pre-Closing Taxable Period
          without the prior written consent of CLJ and SNH.

     (i)  CERTAIN DISTRIBUTIONS. The dividends or other distributions under
          Sections 5.8 and 6.3(i) of the Stock Purchase Agreement shall be
          treated by CLJ and SNH as "distributions" to CLJ for federal income
          tax purposes under Sections 301, 857(a)(2), and 857(d)(3) of the Code,
          and under Treasury Regulations 1.1502-13 and 1.1502-33. For federal
          (and, to the extent allowed under applicable law, state and local)
          income tax purposes, such dividends or other distributions shall not
          be treated by CLJ or SNH as part of the Purchase Price as defined
          under the Stock Purchase Agreement.

                                      -21-
<PAGE>

3. INDEMNIFICATION.

     (a)  BY CLJ

          (i)   TAXES. CLJ shall indemnify and hold every SNH Party harmless
                from and against any and all (A) Taxes attributable to all Tax
                Returns filed (or required to be filed or caused to be prepared
                and filed) by CLJ pursuant to Section 2(a)(i), other than (i)
                Taxes that are allocable to an Acquired Company for its
                Post-Closing Straddle Period or to SNH under Section 2(d), (ii)
                Transfer Taxes for which SNH is responsible pursuant to Section
                9.6 of the Stock Purchase Agreement, and (iii) Taxes for which
                CLJ is entitled to indemnification under either the HM/CLJ Tax
                Sharing Agreement or the Forum/MI Tax Matters Agreement and has
                assigned to SNH its rights to such indemnification (whether
                pursuant to paragraph (d) of this section or otherwise), (B)
                Taxes attributable to or arising from the Transaction (other
                than Transfer Taxes for which SNH is responsible pursuant to
                Section 9.6 of the Stock Purchase Agreement), and (C) Taxes that
                are allocable to any CLJ Party under Section 2(d) (other than
                Transfer Taxes for which SNH is responsible pursuant to Section
                9.6 of the Stock Purchase Agreement).

          (ii)  MEMBER LIABILITY. CLJ shall indemnify and hold every SNH Party
                harmless against each and every liability (a) under Treasury
                Regulation Section 1.1502-6 or any similar law, rule or
                regulation administered by any Taxing Authority, for Income
                Taxes of the Pre-Closing Group and any

                                      -22-
<PAGE>

                other Affiliated Group in which any Acquired Company has been a
                member at any time and (b) for Other Taxes of the Pre-Closing
                Group, Pre-Closing Members and Pre-Closing Affiliates, provided
                that CLJ shall not have any liability to any SNH Party under (a)
                or (b) for any Host Marriott Taxes or Taxes of MII or Services
                for which CLJ is entitled to indemnification under either the
                HM/CLJ Tax Sharing Agreement or the Forum Tax Matters Agreement
                and has assigned to SNH its rights to such indemnification
                (whether pursuant to paragraph (d) of this section or
                otherwise).

     (b)  BY SNH AND CSL. CSL and SNH shall jointly and severally indemnify and
          hold every CLJ Party harmless against (A) any and all Taxes
          attributable to all Tax Returns filed (or required to be filed or
          caused to be prepared and filed) by SNH pursuant to Section 2(a)(ii),
          other than Taxes that are allocable to any Acquired Company for its
          Pre-Closing Straddle Period or to a CLJ Party under Section 2(d), (B)
          any Taxes that are allocable to any SNH Party under Section 2(d), and
          (C) Transfer Taxes for which SNH is responsible pursuant to Section
          9.6 of the Stock Purchase Agreement.

     (c)  CERTAIN REIMBURSEMENTS. SNH (or CLJ, as the case may be) shall notify
          CLJ (or SNH) of any Taxes paid by any SNH Party (or any CLJ Party)
          which are subject to indemnification under this Section 3. To the
          extent not otherwise provided in this Section 3, any notification
          contemplated by this Section 3(c) shall include a detailed calculation
          (including, if applicable, separate allocations of such Taxes between
          Pre-Closing Taxable Periods and Post-Closing Taxable Periods and Pre-

                                      -23-
<PAGE>

          Closing Straddle Periods and Post-Closing Straddle Periods and
          supporting work papers) and a brief explanation of the basis for
          indemnification hereunder. Whenever a notification described in this
          Section 3(c) is given, the notified party shall pay the amount
          requested in such notice to the notifying party in accordance with
          Section 4, but only to the extent that the notified party agrees with
          such request. To the extent the notified party disagrees with such
          request, it shall, within thirty (30) days, so notify the notifying
          party, whereupon the parties shall use their best efforts to resolve
          any such disagreement. Any payment made after such thirty-day period
          shall include interest at the Overdue Rate from the date such payment
          would have been made under Section 4 based upon the original notice
          given by the notifying party.

     (d)  HM/CLJ TAX SHARING AGREEMENT AND FORUM/MI TAX MATTERS AGREEMENT. CLJ
          and CSL, on behalf of themselves and their Affiliates (i) represent
          that CLJ is a party to and entitled to the benefits of, the HM/CLJ Tax
          Sharing Agreement and is the assignee of Host Marriott and entitled to
          the benefits of the Forum Tax Matters Agreement; (ii) agree that, with
          respect to any Post-Closing Taxable Periods of an Acquired Company
          under this Agreement, CLJ (on behalf of itself and its Affiliates)
          hereby assigns to SNH its right, title and interest in the Forum Tax
          Matters Agreement and in the HM/CLJ Tax Sharing Agreement and the
          right to any and all payments for or with respect to any Host Marriott
          Taxes or any matter related to or arising out of the filing (or
          failure to file) of any Host Marriott Tax Return or otherwise related
          to the HM/CLJ Tax Sharing Agreement or the Forum Tax Matters Agreement
          to the extent that such rights, obligations and

                                      -24-
<PAGE>

          payments relate to the Acquired Companies; (iii) agree that, with
          respect to Pre-Closing Taxable Periods of the Acquired Companies
          commencing after the Distribution Date, CLJ shall retain all rights
          and obligations under, and be entitled to any payments from Host
          Marriott, MII or Services arising from the HM/CLJ Tax Sharing
          Agreement or inuring to CLJ under the Forum Tax Matters Agreement;
          (iv) agree that, with respect to the Straddle Periods of the Acquired
          Companies, the rights and obligations under, and entitlement to
          payments from Host Marriott, MII or Services arising from the Host
          Marriott Tax Matters Agreement or inuring to CLJ under the Forum Tax
          Matters Agreement shall be allocated between CLJ and SNH in a manner
          consistent with the allocation and responsibility for the related
          Taxes with respect to such Straddle Periods under Section 2(d); (v)
          that with respect to the Pre-Closing Taxable Periods of the Acquired
          Companies, ending before, on, or including the Distribution Date, CLJ
          (on behalf of itself and its Affiliates) hereby assigns to SNH its
          right, title and interest in the Forum Tax Matters Agreement and in
          the HM/CLJ Tax Sharing Agreement and the right to any and all payments
          for or with respect to any Host Marriott Taxes or any matter related
          to or arising out of the filing (or failure to file) of any Host
          Marriott Tax Return or otherwise related to the HM/CLJ Tax Sharing
          Agreement or the Forum Tax Matters Agreement; and (vi) agree that
          notwithstanding any other provision of this Agreement (but in any case
          preserving the tax representations and indemnifications therefor under
          the Stock Purchase Agreement as contemplated by Section 7), CLJ shall
          not in any event have any liability to any SNH Party for any Host
          Marriott Taxes or for Taxes of MII or

                                      -25-
<PAGE>

          Services, or for any matters related to or arising out of the filing
          (or failure to file) Host Marriott Tax Returns or the provision (or
          accuracy of) any Host Marriott Tax Information or Forum Tax
          Information, and that the sole recourse of the SNH Parties with
          respect to such matters shall be against Host Marriott, MII or
          Services as and to the extent provided in the HM/CLJ Tax Sharing
          Agreement or the Forum Tax Matters Agreement. CLJ, SNH and CSL agree
          to cooperate in good faith in asserting their respective rights, as
          set forth in this paragraph, against Host Marriott, MII or Services
          under the HM/CLJ Tax Sharing Agreement and the Forum Tax Matters
          Agreement.

4. METHOD, TIMING AND CHARACTER OF PAYMENTS REQUIRED BY THIS AGREEMENT.

     (a)  PAYMENT IN IMMEDIATELY AVAILABLE FUNDS; INTEREST. All payments made
          pursuant to this Agreement shall be made in immediately available
          funds. Except as otherwise provided herein, any payment not made
          within fourteen (14) days of when due shall thereafter bear interest
          at the Overdue Rate from the date such payment was due.

     (b)  CHARACTERIZATION OF PAYMENTS. Any payment (other than interest
          thereon) made hereunder by a CLJ Party to an SNH Party or by an SNH
          Party to CLJ shall be treated by all parties for Tax purposes to the
          extent permitted by law, and for accounting purposes to the extent
          permitted by generally accepted accounting principles, as a
          reimbursement and payment for the Tax liability to which such payment
          relates.

                                      -26-
<PAGE>

5. TAX RETURNS; COOPERATION; DOCUMENT RETENTION; CONFIDENTIALITY.

     (a)  PROVISION OF COOPERATION, DOCUMENTS AND OTHER INFORMATION. Upon the
          reasonable request of any party to this Agreement, the parties agree
          that, with respect to any matter directly related to any SNH Party or
          any CLJ Party, or any matter directly related to any Affiliate
          controlled by any SNH Party or any CLJ Party, they shall provide (and
          shall cause their Affiliates to provide) the requesting party,
          promptly upon request, with such cooperation and assistance, access to
          documents, and other information, without charge, as may reasonably be
          requested by such party in connection with (i) the preparation and
          filing of any original or amended Tax Return, (ii) the conduct of any
          audit or other examination or any judicial or administrative
          proceeding involving Taxes or Tax Returns, or (iii) the verification
          by a party of an amount payable hereunder to, or receivable hereunder
          from, another party. Such cooperation and assistance shall include,
          without limitation: (i) the prompt provision (which shall be within
          fourteen (14) days after a request or, if not within such fourteen-day
          period, as soon as possible thereafter using all commercially
          reasonable efforts) of books, records, Tax Returns, documentation or
          other information relating to any relevant Tax Return; (ii) the
          execution of any document that may be necessary or reasonably helpful
          in connection with the filing of any Tax Return, or in connection with
          any audit, proceeding, suit or action of the type generally referred
          to in the preceding sentence, including, without limitation, the
          execution of powers of attorney and extensions of applicable statutes
          of limitations, with respect to Tax Returns which any party may be
          obligated to file (but for which the

                                      -27-
<PAGE>

          other party bears full or partial responsibility for Taxes) pursuant
          to Section 2(a); (iii) the prompt and timely filing of appropriate
          claims for refund; and (iv) the use of reasonable efforts to obtain
          any documentation from a governmental authority or a third party that
          may be necessary or helpful in connection with the foregoing. Each
          party shall make reasonable efforts to make available its employees
          and facilities on a mutually convenient basis to facilitate such
          cooperation. Notwithstanding anything in this Section 5(a) to the
          contrary, CLJ shall not have any responsibility to provide any SNH
          Party any Host Marriott Tax Information (or Forum Tax Information),
          which information the SNH Parties shall seek directly from Host
          Marriott (or MII and Services) to the extent provided for in the
          HM/CLJ Tax Sharing Agreement (or in the Forum/MI Tax Matters
          Agreement), provided, however, that at the written request of an SNH
          Party, each CLJ Party agrees to cooperate in good faith with the SNH
          Parties in their effort to obtain such Host Marriott Tax Information
          (or Forum Tax Information) from Host Marriott (or MII and Services)
          pursuant to the terms of the Host Marriott Tax Matters Agreement (or
          the Forum/MI Tax Matters Agreement).

     (b)  RETENTION OF BOOKS AND RECORDS. Each CLJ Party and each SNH Party
          shall retain or cause to be retained all Tax Returns, and all books,
          records, schedules, workpapers, and other documents relating thereto,
          until the expiration of the later of (i) all applicable statutes of
          limitations (including any waivers or extensions thereof), and (ii)
          any retention period required by law or pursuant to any record
          retention agreement. The parties shall notify each other in writing of
          any waivers, extensions or expirations of applicable statutes of
          limitations. The parties shall

                                      -28-
<PAGE>

          provide written notice of any intended destruction of the documents
          referred to in this subsection at least fourteen (14) days prior to
          the date of intended destruction. A party giving such a notification
          shall not dispose of any of the foregoing materials without first
          offering to transfer possession thereof to all notified parties. The
          parties agree that (i) SNH and CSL shall be deemed to own all Tax
          Returns and Information Returns relating to CSL and any Acquired
          Company, and all books, records, schedules, workpapers, and other
          documents relating thereto, and (ii) CLJ shall own all other Tax
          Returns and Information Returns, and the other related books, records,
          schedules, workpapers, and other documents relating thereto.
          Notwithstanding anything in this Section 5(b) to the contrary, none of
          the foregoing shall apply with respect to any Host Marriott Tax
          Information (or Forum Tax Information), and the exclusive rights of
          any SNH Party with respect to the Host Marriott Tax Information (or
          Forum Tax Information) shall be against Host Marriott (or MII and
          Services), provided, however, that at the written request of an SNH
          Party, CLJ agrees to cooperate in good faith with the SNH Parties in
          their effort to obtain such Host Marriott Tax Information from Host
          Marriott (or MII and Services) pursuant to the terms of the Host
          Marriott Tax Matters Agreement (or the Forum/MI Tax Matters
          Agreement).

     (c)  STATUS AND OTHER INFORMATION REGARDING AUDITS AND LITIGATION. Each
          party shall use reasonable best efforts to keep the other party
          advised, as to the status of Tax audits and litigation involving any
          issue relating to any Taxes, Tax Returns or Tax Benefits subject to
          indemnification under this Agreement. To the extent relating to any
          such issue, each party shall promptly furnish the other party copies
          of any

                                      -29-
<PAGE>

          inquiries or requests for information from any Taxing Authority or any
          other administrative, judicial or other governmental authority, as
          well as copies of any revenue agent's report or similar report, notice
          of proposed adjustment or notice of deficiency.

     (d)  CONFIDENTIALITY OF DOCUMENTS AND INFORMATION. Except as required by
          law or with the prior written consent of the other party, all Tax
          Returns, documents, schedules, work papers and similar items and all
          information contained therein, which Tax Returns and other materials
          are within the scope of this Agreement, shall be kept confidential by
          the parties hereto and their Representatives, shall not be disclosed
          to any other person or entity and shall be used only for the purposes
          provided herein.

6. CONTESTS AND AUDITS.

     (a)  NOTIFICATION OF AUDITS OR DISPUTES. Upon the receipt by a party of
          notice of any pending or threatened Tax audit or assessment which may
          affect the liability for Taxes that are subject to indemnification by
          the other party hereunder, the party receiving notice shall notify the
          other party in writing within fourteen (14) days of the receipt of
          such notice. The failure of any party to make such notification to
          another party shall not affect in any respect the other party's right
          to indemnification hereunder unless, and only to the extent that, such
          other party can demonstrate that it was materially prejudiced by such
          failure.

     (b)  CONTROL AND SETTLEMENT. Except as otherwise provided in this
          paragraph, each of SNH and CLJ shall have the right and obligation, at
          its own expense, to control, and to represent the interests of all
          affected taxpayers in, any Tax audit or

                                      -30-
<PAGE>

          administrative, judicial or other proceeding relating, in whole or in
          part, to any Tax Return or Information Return that is filed by such
          party under Section 2 (the "Filing Party"), and to employ counsel of
          its choice, at its own expense; provided, however, that, (a) with
          respect to such issues that may affect, directly or indirectly, the
          other party (the "Other Party") or an Affiliate thereof, the Filing
          Party (i) shall in good faith consult with the Other Party and counsel
          of the Other Party's choice as to the handling and disposition of such
          issues and (ii) shall not enter into any settlement that impacts,
          directly or indirectly, the Other Party or an Affiliate thereof
          without the prior written consent of the Other Party, which shall not
          be unreasonably withheld. The Other Party shall deliver to the Filing
          Party a written response to any written notification by the Filing
          Party of a proposed settlement within fourteen (14) days of the
          receipt by the other party of such notification. If the Other Party
          fails to so respond within such fourteen (14) day period, such Other
          Party shall be deemed to have consented to the proposed settlement.
          CLJ shall have no obligation with respect to any proceeding involving
          any Host Marriott Taxes or Host Marriott Tax Returns, except CLJ may
          elect to take control of any such proceeding (subject to the other
          provisions of this subparagraph (b)) to the extent (and only to the
          extent) that such proceeding involves Taxes for which CLJ is liable
          under this Agreement.

     (c)  DELIVERY OF POWERS OF ATTORNEY AND OTHER DOCUMENTS. Each party shall
          execute and deliver to a Filing Party, promptly upon request, powers
          of attorney authorizing the Filing Party to extend statutes of
          limitations, receive refunds, negotiate settlements and take such
          other actions that are reasonably appropriate

                                      -31-
<PAGE>

          in the exercise of the Filing Party's control rights pursuant to
          Section 6(b), and any other documents reasonably necessary to effect
          the exercising of such control rights, consistent with the Other
          Party's rights of consultation and consent as set forth in Section
          6(b).

7. OTHER AGREEMENTS. To the extent any provision in this Agreement conflicts
with any provision of the Stock Purchase Agreement, the parties agree that the
provisions of this Agreement shall govern, except (i) as contemplated in the
provisions of this Agreement addressing Section 9.6 of the Stock Purchase
Agreement, and (ii) the provisions of this Agreement shall not affect the Tax
representations and rights resulting from the breach thereof contained in the
Stock Purchase Agreement (with the understanding that any amounts actually paid,
reimbursed, or indemnified for under this Agreement shall not be the subject of
indemnification under the Stock Purchase Agreement to the extent there would be
a duplication).

8. MISCELLANEOUS.

     (a)  EFFECTIVENESS. This Agreement shall have no force or effect if the
          Transaction does not occur. If the Transaction occurs, this Agreement
          shall be effective from and after the Closing Date and shall survive
          until the expiration of any applicable statute of limitations
          (including any waivers and extensions thereof).

     (b)  ENTIRE AGREEMENT. This Agreement contains the entire agreement among
          the parties hereto with respect to the subject matter hereof. This
          Agreement terminates and supercedes any and all other sharing or
          allocation agreements with

                                      -32-
<PAGE>

          respect to Taxes in effect at the time of the Transaction that relate
          to the Pre-Closing Group and the Acquired Companies, but (i) shall not
          affect any such agreement to the extent applicable only among CLJ
          Parties, (ii) shall not affect the HM/CLJ Tax Sharing Agreement or the
          Forum/MI Tax Matters Agreement (which shall remain in effect, except
          that the rights and responsibilities of CLJ and CSL under the HM/CLJ
          Tax Sharing Agreement and the Forum/MI Tax Matters Agreement shall be
          allocated between CLJ and CSL as contemplated by this Agreement), and
          (iii) shall not affect the tax representations and indemnifications
          therefor under the Stock Purchase Agreement.

     (c)  GUARANTEES OF PERFORMANCE. CLJ hereby guarantees the complete and
          prompt performance by each CLJ Party, of all of their obligations and
          undertakings pursuant to this Agreement. CSL and SNH hereby jointly
          and severally guarantee the complete and prompt performance by each
          other and by each SNH Party, of all of their obligations and
          undertakings pursuant to this Agreement.

     (d)  SEVERABILITY. In case any one or more of the provisions contained in
          this Agreement should be invalid, illegal or unenforceable, the
          enforceability of the remaining provisions hereof shall not in any way
          be affected or impaired thereby. It is hereby stipulated and declared
          to be the intention of the parties that they would have executed the
          remaining terms, provisions, covenants and restrictions hereof without
          including any of such which may hereafter be declared invalid, void or
          unenforceable. In the event that any such term, provision, covenant or
          restriction is hereafter held to be invalid, void or unenforceable,
          the parties hereto agree to use their best efforts to find and employ
          an alternate means to achieve the

                                      -33-
<PAGE>

          same or substantially the same result as that contemplated by such
          term, provision, covenant or restriction.

     (e)  INDULGENCES, ETC. Neither the failure nor any delay on the part of any
          party hereto to exercise any right under this Agreement shall operate
          as a waiver thereof, nor shall any single or partial exercise of any
          right preclude any other or further exercise of the same or any other
          right, nor shall any waiver of any right with respect to any
          occurrence be construed as a waiver of such right with respect to any
          other occurrence.

     (f)  GOVERNING LAW. This Agreement shall be governed by and construed in
          accordance with the internal laws of the State of Maryland without
          regard to the conflict of law principles thereof, except with respect
          to matters of law concerning the internal corporate affairs of any
          corporate entity which is a party to or subject of this Agreement, and
          as to those matters the law of the jurisdiction under which the
          respective entity derives its powers shall govern.

     (g)  NOTICES. All notices, requests, demands and other communications
          required or permitted under this Agreement that are routine in nature
          shall be made in writing and shall be delivered by hand or mailed by
          registered or certified mail (return receipt requested) to the
          designated representative of the tax department of each party and
          confirmed by a way thereof directed to the general counsel of each
          party.

     (h)  MODIFICATION OR AMENDMENT. This Agreement may be amended at any time
          by written agreement executed and delivered by duly authorized
          officers of SNH, CSL and CLJ.

                                      -34-
<PAGE>

     (i)  SUCCESSORS AND ASSIGNS. A party's rights and obligations under this
          Agreement may not be assigned without the prior written consent of the
          other party. All of the provisions of this Agreement shall be binding
          upon and inure to the benefit of the parties and their respective
          successors and permitted assigns, and shall survive any acquisition,
          disposition or other corporate restructuring or transaction involving
          any party.

     (j)  NO THIRD PARTY BENEFICIARIES. This Agreement is solely for the benefit
          of the parties to this Agreement and their respective Affiliates and
          should not be deemed to confer upon third parties any remedy, claim,
          liability, reimbursement, claim of action or other right in excess of
          those existing without this Agreement.

     (k)  OTHER COUNTERPARTS. This Agreement may be executed in any number of
          counterparts, each such counterpart being deemed to be an original
          instrument, and all of such counterparts shall together constitute one
          and the same instrument. The section numbers and captions herein are
          for convenience of reference only, do not constitute part of this
          Agreement and shall not be deemed to limit or otherwise affect any of
          the provisions hereof.

     (l)  PREDECESSORS AND SUCCESSORS. To the extent necessary to give effect to
          the purposes of this Agreement, any reference to any corporation,
          partnership, limited liability company, business trust, Affiliated
          Group, member of an Affiliated Group or other entity shall also
          include any predecessors or successors thereto, by operation of law or
          otherwise.

     (m)  TAX ELECTIONS. Except as provided in Section 6(b) or this paragraph,
          (i) nothing in this Agreement is intended to change or otherwise
          affect any previous tax election

                                      -35-
<PAGE>

          made by or on behalf of the Pre-Closing Group (including the election
          with respect to the calculation of earnings and profits under Code
          Section 1552 and the regulations thereunder), and (ii) CLJ shall
          continue to have discretion, reasonably exercised, to make any and all
          elections with respect to all members of the Pre-Closing Group for all
          of the Acquired Companies' Pre-Closing Taxable Periods or other Tax
          Periods for which it is obligated to file Tax Returns or Information
          Returns under Section 2(a)(i). Notwithstanding anything to the
          contrary in this Agreement, (i) CLJ agrees that it shall consult with
          SNH regarding, and shall obtain SNH's written consent (which shall not
          be unreasonably withheld) with respect to, all accounting methods
          adopted or used (including without limitation with respect to useful
          lives) in connection with any property of any Acquired Company, that
          is placed in service in 2001 or 2002 (and before the Closing Date),
          (ii) CLJ agrees to provide to SNH, not later than January 30, 2002
          (or, if later, 30 days following the Closing Date), a report detailing
          all property of any Acquired Company placed in service in 2001 or 2002
          (and before the Closing Date) (based on the information reasonably
          available to CLJ at the time such report is prepared), and the
          accounting methods proposed to be adopted or used with respect to such
          property, and to provide an update of such report not later than the
          last business day of every month thereafter, and to provide a final
          report, not later than six months following the Closing Date (the
          "Final Report"), detailing all property of the Acquired Companies that
          is placed in service in 2001 or 2002 (and before the Closing Date) and
          the accounting methods proposed to be adopted or used with respect to
          such property. If SNH does not respond in writing to the

                                      -36-
<PAGE>

          Final Report within twenty-one (21) days of receipt of such Final
          Report by SNH, SNH shall be deemed to have consented to the proposed
          accounting methods contained in the Final Report.

     (n)  INJUNCTIONS. The parties acknowledge that irreparable damage would
          occur in the event that any of the provisions of this Agreement were
          not performed in accordance with its specific terms or were otherwise
          breached. The parties hereto shall be entitled to an injunction or
          injunctions to prevent breaches hereto and to enforce specifically the
          terms and provisions hereof in any court having jurisdiction; such
          remedy shall be in addition to any other remedy available at law or in
          equity.

     (o)  FURTHER ASSURANCES. Subject to the provisions hereof, the parties
          hereto shall make, execute, acknowledge and deliver such other
          instruments and documents, and take all such other actions, as may be
          reasonably required in order to effectuate the purposes of this
          Agreement and to consummate the transactions contemplated hereby.
          Subject to the provisions hereof, each party shall, in connection with
          entering into this Agreement, performing its obligations hereunder and
          taking any and all actions relating hereto, comply with all applicable
          laws, regulations, orders and decrees, obtain all required consents
          and approvals and make all required filings with any governmental
          agency, other regulatory or administrative agency, commission or
          similar authority and promptly provide the other party with all such
          information as it may reasonably request in order to be able to comply
          with the provisions of this sentence.

                                      -37-
<PAGE>

     (p)  SETOFF. All payments to be made by any party under this Agreement
          shall be made without setoff, counterclaim or withholding, all of
          which are expressly waived.

     (q)  COSTS AND EXPENSES. Unless otherwise specifically provided herein,
          each party agrees to pay its own costs and expenses resulting from the
          fulfillment of its respective obligations hereunder.

     (r)  RULES OF CONSTRUCTION. Any ambiguities shall be resolved without
          regard to which party drafted the Agreement.

     (s)  SNH LIMITATION OF LIABILITY. The Declaration of Trust of SNH, a copy
          of which is duly filed with the Department of Assessments and Taxation
          of the State of Maryland, provides that the name "Senior Housing
          Properties Trust" refers to the trustees under such Declaration of
          Trust collectively as trustees, but not individually or personally,
          and that no trustee, officer, shareholder, employee or agent of SNH
          shall be held to any personal liability, jointly or severally, for any
          obligation of, or claim against, SNH. All persons dealing with SNH in
          any way shall look only to the assets of SNH for the payment of any
          sum or the performance of any obligation.

                                      -38-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or
have caused this Agreement to be executed on their respective behalf by their
respective officers thereunto duly authorized, as of the day and year above
written.

                        CRESTLINE CAPITAL CORPORATION AND
                        SUBSIDIARIES AND AFFILIATES

                        By:      ________________________________
                        Name:    ________________________________
                        Title:   ________________________________

                        CSL GROUP, INC.
                        AND SUBSIDIARIES AND AFFILIATES

                        By:      ________________________________
                        Name:    ________________________________
                        Title:   ________________________________

                        SENIOR HOUSING PROPERTIES TRUST

                        By:____________________________________

                        By:____________________________________
                        Name: _________________________________
                        Title: __________________________________

                                      -39-

<PAGE>

                                    EXHIBIT E

The Master Lease, Consent to Sublease and Agreement, Membership Interest Pledge
and Security Agreement, and Pledge and Security Agreement-Demand Note
(Collateral Assignment of Demand Note, all dated as of April 30, 1999 will be
amended as necessary, effective the Closing Date, to provide that:

1. The minimum tangible net worth (as defined in the Membership Interest Pledge
and Security Agreement but amended to include, as an asset, the unamortized
portion of the cash purchase price paid by CLJ for hotel management contracts
then held by CLJ) of CLJ shall be not less than $30,000,000 ("Minimum Net
Worth"); and

2. HPT consents to a reorganization, merger or sale of assets affecting CLJ, in
which the resulting or surviving entity or purchaser A) is organized under the
laws of and has its principal place of business in, a state of the United States
or the District of Columbia, B) has a tangible net worth of not less than the
Minimum Net Worth, C) is an experienced asset manager of hotel properties, D) is
not a real estate investment trust or controlled by a real estate investment
trust and E) is not controlled by convicted felons.

3. In the event of any reorganization, merger or sale of assets affecting CLJ,
where the conditions set forth in Section 2 have not been met, then the
modification set forth in Section 1 shall terminate (except that the definition
of minimum tangible net worth shall continue to include, as an asset, the
unamortized portion of the cash purchase price paid by CLJ for hotel management
contracts then held by CLJ).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]