Document:

earlyoptionltrpavilion.htm

    

    

    June 7,
      2007

    

    

    
      	
              Mr.
                Eric Mendelsohn

              Director
                of Real Estate and Legal Affairs

              Emeritus
                Corporation

              3131 Elliott
                Avenue, Suite 4500

              Seattle,
                Washington  98121

            	 

    

    

    
      	
              RE:

            	
              Master
                Lease Agreement between Health Care REIT, Inc. (“HCN”) and certain
                Affiliates and Emeritus Corporation, dated September 30, 2004 (the
                “Lease”); Purchase of Orlando,
                Florida

            

    

     

    Dear
      Mr. Mendelsohn:

     

    Notwithstanding
      certain provisions of the Lease, HCN is granting Emeritus Corporation an early
      option to purchase the Leased Property known as Pavilion at Crossing Point
      and
      located in Orlando, Florida for the Early Option Price of $5,612,773.36 plus
      all
      payments and amounts as set forth below (collectively, the “Option Closing
      Amount”).  Capitalized terms not defined herein have the meaning used
      in the Lease.

     

    The
      Option Closing Amount is conditioned on payment being received by HCN in
      immediately available funds (wire transfer) to our bank account by June 29,
      2007 at 2:00 p.m. EST (the “Closing Date”).

     

    
      	
              HCN
                Early Option Price

            	
              $5,612,773.36

            
	
              Monthly
                Depreciateion – through 6/30/07

            	
              (12,725.84)

            
	
              HCN
                Base Rent 6/1/07-6/30/07

            	
              Paid

            
	
              HCN
                Legal Fees – SLK

            	
              2,300.00

            
	
              Option
                Closing Amount

            	
              $2,725,112.33

            

    

    

    For
      ease
      of calculation, but not to amend any obligations arising under the Lease; Per
      Diem Base Rent for the Leased Property is $1,571.89.  In the event the
      Option Closing Amount is not received by HCN on the Closing Date, additional
      Base Rent will become due and Per Diem Base Rent will be added to the Option
      Closing Amount each day.  In the event the Option Closing Amount is
      not received by June 30, 2007, HCN will amend this letter for a payoff as
      of July 31, 2007 and thereafter this early option letter shall
      expire.

     

    In
      addition to the Option Closing Amount to be paid to HCN, Emeritus Corporation
      shall be responsible for all closing costs and expenses in connection with
      the
      transfer, including, but not limited to, the following:  [1] real
      property conveyance or transfer fees or deed stamps; [2] title search fees,
      title insurance commitment fees, and title insurance premiums; [3] survey
      fees; [4] environmental assessment fees; [5] recording fees;
      [6] attorneys’ fees of HCN’s counsel; [7] fees of any escrow agent;
      and [8] all amounts, costs, expenses, charges, Additional Rent and other
      items payable by Tenant to HCN, including, but not limited to, enforcement
      costs
      as set forth in Section 8.7 of the Lease.  HCN shall convey title
      to the Leased Property to Emeritus Corporation, or an affiliate or designee
      of
      Emeritus Corporation (“Purchaser”) by a transferable and recordable quitclaim
      deed and quitclaim bill of sale.  All recordable documents shall be
      delivered by HCN into escrow and filed at Purchaser’s sole cost and
      expense.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      wiring instructions to our bank account are as follows:

     

    
      	
              Key
                Bank (Cleveland, OH)

              ABA
                #

              Credit:  Health
                Care REIT, Inc.

              A/C
                #

              Notify:  Mike Crabtree
                (419) 247-2811

            	 

    

    

    Please
      evidence your agreement to the terms set forth herein by executing the letter
      below and returning it to me.  Upon receipt of an executed copy of
      this letter, we will instruct our counsel to prepare the appropriate
      documentation.

     

    Please
      contact me with any questions or comments.

     

    Very
      truly yours,

     

    HEALTH
      CARE REIT, INC.

     

    /s/
      Paul
      Nungester

    Paul D.
      Nungester

    Controller

    

    cc:           George L.
      Chapman

    Ray W.
      Braun

    Erin C.
      Ibele

    Jeffrey H.
      Miller

    Michael A.
      Crabtree

    Scott A.
      Estes

    Mary Ann
      Bardwell

    Tracy W.
      Carte

    Tanya L.
      DiCiacca

    Evelyn D.
      Evans-Eck

    Stephanie L.
      Haas

    Wendy S.
      McCormick

    Rose Marie
      Sancrant

    Christopher M.
      Simon

    Rachel M.
      Watson

    Charles J.
      Herman

    Leslie A.
      Ansberg

    Steve W.
      Schroeder

    Oksana M.
      Ludd – Shumaker Loop & Kendrick

    Mary Ellen
      Pisanelli – Shumaker Loop & Kendrick

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    I
      acknowledge and agree to be bound by the terms and conditions set forth in
      this
      letter regarding the sale of the above-referenced facility.

     

    ACCEPTED
      BY:

     

    
      	
              EMERITUS
                CORPORATION

               

               

              By:
                /s/ Eric Mendelsohn

              Eric
                Mendelsohn

              Director
                of Real Estate and Legal Affairs

            	
               

               

               

              June
                14, 2007

              Dateearlyoptionletspringtree.htm

    

    

    June 7,
      2007

    

    

    
      	
              Mr.
                Eric Mendelsohn

              Director
                of Real Estate and Legal Affairs

              Emeritus
                Corporation

              3131 Elliott
                Avenue, Suite 4500

              Seattle,
                Washington  98121

            	 

    

    

    
      	
              RE:

            	
              Master
                Lease Agreement between Health Care REIT, Inc. (“HCN”) and certain
                Affiliates and Emeritus Corporation, dated September 30, 2004 (the
                “Lease”); Purchase of Sunrise,
                Florida

            

    

     

    Dear
      Mr.Mendelsohn:

     

    Notwithstanding
      certain provisions of the Lease, HCN is granting Emeritus Corporation an early
      option to purchase the Leased Property known as Springtree and located in
      Sunrise, Florida for the Early Option Price of $16,234,506.64 plus all payments
      and amounts as set forth below (collectively, the “Option Closing
      Amount”).  Capitalized terms not defined herein have the meaning used
      in the Lease.

     

    The
      Option Closing Amount is conditioned on payment being received by HCN in
      immediately available funds (wire transfer) to our bank account by June 29,
      2007 at 2:00 p.m. EST (the “Closing Date”).

     

    
      	
              HCN
                Early Option Price

            	
              $16,234,506.64

            
	
              Monthly
                Depreciation – through 6/30/07

            	
              (37,359.16)

            
	
              HCN
                Miscellaneous Amount Due (See Exhibit A)

            	
              14,662.74

            
	
              HCN
                Base Rent 6/1/07-6/30/07

            	
              Paid

            
	
              HCN
                Legal Fees – SLK

            	
              2,536.27

            
	
              Option
                Closing Amount

            	
              $16,214,346.49

            

    

    

    For
      ease
      of calculation, but not to amend any obligations arising under the Lease; Per
      Diem Base Rent for the Leased Property is $4,551.17.  In the event the
      Option Closing Amount is not received by HCN on the Closing Date, additional
      Base Rent will become due and Per Diem Base Rent will be added to the Option
      Closing Amount each day.  In the event the Option Closing Amount is
      not received by June 30, 2007, HCN will amend this letter for a payoff as
      of July 31, 2007 and thereafter this early option letter shall
      expire.

     

    In
      addition to the Option Closing Amount to be paid to HCN, Emeritus Corporation
      shall be responsible for all closing costs and expenses in connection with
      the
      transfer, including, but not limited to, the following:  [1] real
      property conveyance or transfer fees or deed stamps; [2] title search fees,
      title insurance commitment fees, and title insurance premiums; [3] survey
      fees; [4] environmental assessment fees; [5] recording fees;
      [6] attorneys’ fees of HCN’s counsel; [7] fees of any escrow agent;
      and [8] all amounts, costs, expenses, charges, Additional Rent and other
      items payable by Tenant to HCN, including, but not limited to, enforcement
      costs
      as set forth in Section 8.7 of the Lease.  HCN shall convey title
      to the Leased Property to Emeritus Corporation, or an affiliate or designee
      of
      Emeritus Corporation (“Purchaser”) by a transferable and recordable quitclaim
      deed and quitclaim bill of sale.  All recordable documents shall be
      delivered by HCN into escrow and filed at Purchaser’s sole cost and
      expense.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      wiring instructions to our bank account are as follows:

     

    
      	
              Key
                Bank (Cleveland, OH)

              ABA
                

              Credit:  Health
                Care REIT, Inc.

              A/C
                

              Notify:  Mike Crabtree
                (419) 247-2811

            	 

    

    

    Please
      evidence your agreement to the terms set forth herein by executing the letter
      below and returning it to me.  Upon receipt of an executed copy of
      this letter, we will instruct our counsel to prepare the appropriate
      documentation.

     

    Please
      contact me with any questions or comments.

     

    Very
      truly yours,

     

    HEALTH
      CARE REIT, INC.

     

    /s/
      Paul
      Nungester

    Paul D.
      Nungester

    Controller

    

    cc:           George L.
      Chapman

    Ray W.
      Braun

    Erin C.
      Ibele

    Jeffrey H.
      Miller

    Michael A.
      Crabtree

    Scott
      A.
      Estes

    Mary Ann
      Bardwell

    Tracy W.
      Carte

    Tanya L.
      DiCiacca

    Evelyn D.
      Evans-Eck

    Stephanie L.
      Haas

    Wendy S.
      McCormick

    Rose Marie
      Sancrant

    Christopher M.
      Simon

    Rachel M.
      Watson

    Charles J.
      Herman

    Leslie A.
      Ansberg

    Steve W.
      Schroeder

    Oksana M.
      Ludd – Shumaker Loop & Kendrick

    Mary Ellen
      Pisanelli – Shumaker Loop & Kendrick

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    I
      acknowledge and agree to be bound by the terms and conditions set forth in
      this
      letter regarding the sale of the above-referenced facility.

     

    ACCEPTED
      BY:

     

    
      	
              EMERITUS
                CORPORATION

               

               

              By:
                /s/ Eric Mendelsohn

              Eric
                Mendelsohn

              Director
                of Real Estate and Legal Affairs

            	
               

               

               

              June
                14, 2007

              Date

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