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                                                                    EXHIBIT 10.2

                                    AGREEMENT

         This AGREEMENT (the "Agreement") by and between Manor Care, Inc.
("Manor Care"), Heartland Employment Services, Inc. ("Company"), Health Care and
Retirement Corporation of America ("HCRA") and __________________________ as
Trustee ("Trustee") under a certain Irrevocable Trust Agreement dated September
28, 1992 between Paul A. Ormond ("Executive") as grantor and __________________
as Trustee ("Trust ") is effective August 20, 2004.

                                    RECITALS

         WHEREAS, Executive entered into a Split Dollar Assignment Insurance
Agreement on September 28, 1992 and amended and restated same on January 17,
2002 ("SDA") with HCRA, pursuant to which the Trust became the owner of certain
life insurance policy (ies) (the "Policy") on the life of Executive and the
Company agreed to pay the premiums on such Policy and retain an interest (the
"Corporate Interest") in the cash value of the Policy; and

         WHEREAS, in September 2003 the Internal Revenue Service adopted new
regulations the effect of which will be to change the tax treatment of the SDA
by causing the full cash value in the Policy to become taxable to Executive at
retirement and Executive to be subject to gift tax as a result of the Policy
being held by the Trust; and

         WHEREAS, Section 4.1 of the SDA provides that in the event of adverse
tax consequences to Executive from recovery by the Company of the Corporate
Interest in the Policy, the Company may delay recovery of its Corporate
Interest; and

         WHEREAS, the Compensation Committee of the Manor Care Board of
Directors has received and reviewed the recommendations of its tax and
compensation consultants, Deloitte & Touche, regarding the impact of the IRS
regulations referred to above, and in view of the recommendations of Deloitte &
Touche, have agreed on actions designed to mitigate the impact of the changes in
tax treatment of the SDA on the Company and Executive; and

         WHEREAS, the Company, Manor Care, HCRA and Trustee desire to enter into
this Agreement for the purpose of implementing the actions of the Board and the
Compensation Committee with respect to the Policy.

         NOW THEREFORE, in consideration of the foregoing and the mutual
promises and commitments contained herein, and for other good and valuable
consideration, the parties agree as follows:

         1. Delay in Recovery of Corporate Interest. Due to the adverse tax
consequences to Executive as a result of the IRS regulations, pursuant to
Section 4.1 of the SDA, the Company and the Trust agrees that the Corporate
Interest shall be repaid in installments of $7,635 per year. Such obligation
shall commence in and with respect to the first full calendar year following
Executive's retirement, and such amount shall be due and payable on December 31
of such year and subsequent years until the Corporate Interest has been repaid.
In the event that the Corporate

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Interest is not repaid in full upon Executive's death, then the remainder of the
Corporate Interest will become due and payable upon Executive's death.

         2. Acknowledgement. Trustee of the Trust acknowledges and agrees
that Manor Care, the Company and HCRA by complying with the terms of this
Agreement will have fulfilled all obligations of HCRA under Section 5.10 of the
SDA, and so long as Manor Care and the Company perform their obligations under
this Agreement, Trustee of the Trust shall take no action seeking additional
benefits under Section 5.10 of the SDA.

         3. Further Actions. Each party agrees to take such further action, do
such other things, and execute such other writings as shall be necessary and
proper to carry out the terms and provisions of this Agreement. Manor Care shall
cause the Company, HCRA or any successor employer of Executive to honor and
fulfill its responsibilities and agreements under this Agreement.

         4. Interpretation. This Agreement shall be subject to and shall be
construed under the laws of the State of Ohio.

         5. Headings. Any headings or captions in this Agreement are for
reference purposes only, and shall not expand, limit, change or affect the
meaning of any provision of this Agreement.

         6. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same Agreement.

         7. Successors. This Agreement shall inure to the benefit of and be
binding upon Manor Care, the Company, HCRA and their successors and assigns.
Manor Care shall require any successor to all or substantially all of the
business and/or assets of Manor Care, the Company or HCRA, whether direct or
indirect, by purchase, merger, consolidation, acquisition of stock, or
otherwise, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent as Manor Care, the Company or HCRA would be
required to perform if no such succession had taken place. This Agreement shall
be binding upon and inure to the benefit of the Trust, any successor to Trustee
of the Trust and/or any successor or assigns of the Trust, including the
beneficiaries of the Trust.

TRUSTEE                                    MANOR CARE, INC.

By:   ___________________________          By:  ________________________________
Name: ___________________________          Its: ________________________________
Its:  ___________________________

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                                           HEARTLAND EMPLOYMENT SERVICES, INC.

                                           By:  ________________________________
                                           Its: ________________________________

                                           HEALTH CARE AND RETIREMENT
                                           CORPORATION OF AMERICA

                                           By:  ________________________________
                                           Its: ________________________________

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                                                                    EXHIBIT 10.3

                                       Manor Care, Inc.
                                       333 N. Summit Street
                                       Toledo, OH 43604

August 20, 2004

Mr. Paul A. Ormond

Dear Paul:

         The Compensation Committee of the Board of Directors of Manor Care,
Inc. ("Manor Care") recognizes your efforts and would like to provide you with
the opportunity to earn retirement/death benefits in addition to those provided
by the Supplemental Executive Retirement Plan and the Supplemental Corporate
Officer-Senior Executive Life Insurance Program. Accordingly, Manor Care will
purchase a life insurance policy on your life (the "Policy") with premiums
payable in the total amount of $3,400,000 over five years, and with such other
terms with such insurance carrier as may mutually be agreed upon. Manor Care
will solicit your input on the form of such Policy and the selection of the
insurance carrier. Manor Care will be the owner of the Policy. In the event that
you retire from the Company on or after your attainment of age 60, then subject
to the terms of this letter Manor Care will transfer to you the ownership of the
Policy. Manor Care will designate the beneficiary of the Policy as you may
instruct; provided, however, that except as provided below, if you terminate
employment prior to age 60, Manor Care will be the beneficiary of the Policy.

         Except as provided below, if you voluntarily terminate employment with
Manor Care prior to attaining age 60 Manor Care will continue as the owner of
the Policy, you shall have no rights to have the Policy transferred to you and
Manor Care shall have no further obligations to you under this Agreement. In
such case Manor Care as the owner of the Policy may in its discretion continue
such Policy in force or may surrender the Policy for its cash value at anytime.

         In the event prior to your attaining age 60 your employment terminates
due to (i) Manor Care terminating your employment for reasons other than Cause
(as defined in the Severance Agreement dated August 20, 1999 between Health Care
Retirement Corporation of America, HCR ManorCare, Inc. and you (the "Severance
Agreement"), (ii) death, (iii) your disability such that you become entitled to
disability benefits under Manor Care's long term disability plan, (iv) your
voluntary termination of employment following a Corporate Transaction (as
defined in the Severance Agreement) under such circumstances that you are
entitled under the terms of the Severance Agreement to Severance Benefits (as
defined in the Severance Agreement) thereunder, (v) your voluntary termination
of employment following an involuntary reduction in your overall compensation
opportunities as in effect on the date hereof, or (vi) your voluntary
termination of employment following a material reduction in your
responsibilities or title but not including any change in your title of Chairman
which is determined to be made by the Board of

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August 20, 2004
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Directors of Manor Care in good faith as being in accordance with corporate
governance standards generally applicable in the relevant marketplace, then in
addition to and as part of any severance which may be payable under the terms of
your Severance Agreement, Manor Care will transfer ownership of the Policy to
you (or in the event of your death to your estate or other beneficiary you
designate) as of the first business day following your termination of
employment.

         You shall be responsible for all taxes imposed on you with respect to
the Policy transfer. To the extent that such transfer results in a tax
withholding obligation on Manor Care, then Manor Care may satisfy such
withholding from any other payments which may be due to you from Manor Care. If
there are not sufficient funds upon which to satisfy any such withholding
requirements, then Manor Care may satisfy any withholding obligations from the
cash surrender value of the Policy. Alternatively, at your election you may
satisfy the withholding Obligation by paying Manor Care such amount from other
funds.

         Nothing contained in this letter agreement conveys upon you the right
to continue to be employed by Manor Care, constitutes a contract or agreement of
employment or restricts Manor Care's right to terminate you at any time, with or
without cause.

         The laws of the State of Ohio will govern the terms of this letter
agreement.

         Please indicate your acceptance of the terms set forth in this letter
agreement by signing and dating it below and returning it to me.

                                      Very truly yours,

                                      Chairman, Compensation Committee of
                                      the Board of Directors of Manor Care, Inc.

                                      Agreed and Accepted.

                                      __________________________________________
                                      Paul A. Ormond                        Date

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