Document:

Exhibit 10.13

                                    FORM OF

                           PROPERTY LEASE AGREEMENT

                                by and between

                       PSLT-BLC _________________, LLC,

                     a Delaware limited liability company,

                                 as Landlord,

                                      and

                       BLC - ____________________, LLC,

                     a Delaware limited liability company,

                                   as Tenant

                                  Dated as of

                          ____________________, 2004

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<TABLE>
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                                      TABLE OF CONTENTS
<S>   <C>
1.    Definitions..........................................................................1
2.    Leased Property.....................................................................16
3.    Condition of Leased Property........................................................16
4.    Term................................................................................16
      (a)    Initial Term.................................................................16
      (b)    Renewal Terms................................................................16
5.    Rent................................................................................17
      (a)    Rent.........................................................................17
      (b)    Base Rent....................................................................17
      (c)    Additional Rent..............................................................17
      (d)    Additional Debt Service Costs................................................17
      (e)    **[Ground Lease Payments.....................................................17
      (f)    Consent Expenses.............................................................18
      (g)    Late Charge; Interest........................................................18
      (h)    Payment without Abatement....................................................18
6.    Holding Over........................................................................18
7.    Use of Leased Property; Compliance With Legal Requirements and Other Requirements...19
      (a)    Intended Use.................................................................19
      (b)    Legal Requirements, Insurance Requirements, Facility Mortgage Requirements
             and Other Requirements.......................................................19
      (c)    Compliance with Third Party Payor Program Requirements.......................19
      (d)    Landlord to Grant Easements, Etc.............................................19
      (e)    Landlord's Receipt Of Third Party Payor Program Reimbursements...............20
8.    Tenant's Covenant to Repair.........................................................20
      (a)    Repair and Maintenance.......................................................20
      (b)    Related Personal Property....................................................20
9.    No Landlord Repair Obligations......................................................21
10.   Surrender...........................................................................21
      (a)    Surrender of Leased Property.................................................21
      (b)    Transfer of Licenses and Permits.............................................21
      (c)    Apportionment of Impositions, Insurance Premiums and the Minimum
             Capital Additions Amount.....................................................21
11.   Capital Additions...................................................................22
      (a)    Construction of Capital Additions............................................22
      (b)    Non-Capital Additions........................................................22
      (c)    Capital Additions Financed by Landlord.......................................22
      (d)    Disbursement of Capital Addition Allowances..................................23
      (e)    Capital Addition Allowances Added to Lease Basis.............................24
12.   Utilities and Other Services........................................................25
13.   Performance by Landlord of Tenant's Obligations.....................................25
      (a)    Landlord's Self Help.........................................................25
      (b)    Landlord's Inspections.......................................................25
14.   Entry...............................................................................26
15.   Assignment, Subletting and Liens....................................................26

                                              i
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      (a)    Transfers Prohibited Without Consent.........................................26
      (b)    Adequate Assurances..........................................................27
      (c)    Permitted Subleases..........................................................27
      (d)    Intentionally Omitted........................................................27
      (e)    Liens........................................................................27
16.   Impositions.........................................................................27
17.   Casualty............................................................................28
      (a)    Restoration and Repair.......................................................28
      (b)    Unavailability of Proceeds...................................................28
      (c)    Termination of Lease by Tenant...............................................29
      (d)    Escrow of Insurance Proceeds.................................................30
      (e)    Uninsured Losses.............................................................30
18.   Insurance...........................................................................30
      (a)    Insurance By Tenant..........................................................30
      (b)    Landlord as Additional Insured and/or Loss Payee.............................33
      (c)    Carriers and Features........................................................34
      (d)    Failure to Procure Insurance.................................................34
      (e)    Intentionally Omitted........................................................34
      (f)    Indemnification of Landlord..................................................34
19.   Environmental Matters...............................................................35
      (a)    Tenant's Covenant............................................................35
      (b)    Clean-Up.....................................................................35
      (c)    Indemnification..............................................................36
      (d)    Notice.......................................................................36
20.   Costs and Attorneys' Fees...........................................................36
21.   Default; Remedies...................................................................37
      (a)    Default......................................................................37
      (b)    Remedies.....................................................................39
22.   Landlord's Default; Landlord's Right to Dispute.....................................41
      (a)    Landlord Default.............................................................41
      (b)    Landlord's Right to Dispute..................................................41
      (c)    Tenant Right to Cure Facility Mortgage Default...............................41
23.   Condemnation........................................................................41
      (a)    Complete Taking..............................................................41
      (b)    Partial Taking...............................................................42
      (c)    Award........................................................................42
      (d)    Notices......................................................................42
24.   Reports and Statements..............................................................42
25.   Additional Covenants of Tenant......................................................44
      (a)    Indebtedness of Tenant.......................................................44
      (b)    Management of Leased Property; Joinder by Manager............................44
      (c)    Landlord Lien................................................................45
      (d)    Capital Additions............................................................45
      (e)    Capital Additions Reserve....................................................45
      (f)    Operation of the Facility....................................................46
26.   Permitted Contests..................................................................46

                                             ii
<PAGE>

27.   Notices of Commencement of Construction.............................................46
28.   Limitation on Liability of Landlord and Tenant......................................47
29.   "Net" Lease/No Impairment...........................................................47
      (a)    "Net" Lease..................................................................47
      (b)    No Affect or Impairment......................................................47
30.   Representations and Warranties......................................................48
      (a)    Representations of Tenant....................................................48
      (b)    Representations of Landlord..................................................48
31.   Notices.............................................................................49
32.   No Waiver...........................................................................51
33.   Quiet Enjoyment.....................................................................51
34.   Intentionally deleted...............................................................51
35.   Subordination, Non-Disturbance and Attornment.......................................51
36.   Brokers.............................................................................51
37.   Invalidity..........................................................................52
38.   Counterparts........................................................................52
39.   Memorandum of Lease.................................................................52
40.   Cumulative..........................................................................52
41.   Governing Law.......................................................................52
42.   Successors and Assigns; Relationship................................................52
43.   Entire Agreement....................................................................52
44.   Survival............................................................................52
45.   Estoppel Certificates...............................................................52
46.   Time................................................................................53
47.   Captions and Headings...............................................................53
48.   Waiver of Jury Trial................................................................53
49.   Signage.............................................................................53
50.   Lease Guaranty......................................................................53
51.   Intentionally Omitted...............................................................53
52.   Public Offering Information; Delivery of Information................................53
53.   Appraisal Procedure.................................................................54
54.   Facility Mortgages..................................................................55
      (a)    Cooperation in Obtaining Replacement Facility Mortgages......................55
      (b)    Compliance With Facility Mortgages...........................................55
      (c)    Escrow Reserve Accounts Under Facility Mortgages.............................56
55.   Escrows Held by Facility Mortgagee..................................................56
</TABLE>

                                             iii
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                                   EXHIBITS:
                                   ---------

Exhibit A  Legal Description
Exhibit B  Memorandum of Lease
Exhibit C  Subordination Agreement
Exhibit D  Lease Guaranty

                                      iv
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                           PROPERTY LEASE AGREEMENT
                           ------------------------

      THIS PROPERTY LEASE AGREEMENT (the "Lease") is made as of this ___ day
of _________ 2004, by and between PSLT-BLC ________________________, LLC, a
Delaware limited liability company, as landlord ("Landlord") and
BLC-_________________, LLC, a Delaware limited liability company, as tenant
("Tenant"), and is joined into for certain limited purposes by BROOKDALE
PROVIDENT MANAGEMENT, LLC, a Delaware limited liability company ("Manager").

      In consideration of the mutual promises and agreements herein contained,
the parties agree as follows:

1.    Definitions. For all purposes of this Lease, except as otherwise
expressly provided or unless the context otherwise requires, (i) the terms
defined in this Paragraph shall have the meanings assigned to them in the
Paragraph and include the plural as well as the singular, (ii) all accounting
terms not otherwise defined herein shall have the meanings assigned to them in
accordance with GAAP, (iii) all references in this Lease to designated
"Paragraphs" or "Subparagraphs" and other subdivisions are to the designated
Paragraphs, Subparagraphs and other subdivisions of this Lease, and (iv) the
words "herein," "hereof," "hereunder" and other words of similar import refer
to this Lease as a whole and not to any particular Paragraph or Subparagraph
or other subdivision.

            "Additional Debt Service Costs" shall mean, with respect to any
Brookdale Requested Refinancing:

            (i) with respect to the Brookdale Requested Refinancing Basis or
      the Brookdale Requested Second Financing Basis, as the case may be, an
      amount equal to the amount, if any, calculated on a monthly basis, by
      which (x) the monthly debt service (i.e., principal and interest
      payments) payable under any such Brookdale Requested Refinancing and
      allocable to the Brookdale Requested Refinancing Basis or the Brookdale
      Requested Second Financing Basis, as applicable (calculated by
      multiplying the aggregate debt service (i.e., principal and interest
      payments) payable under the Brookdale Requested Refinancing by a
      fraction, the numerator of which shall be the Brookdale Requested
      Refinancing Basis or the Brookdale Requested Second Financing Basis, as
      applicable, and the denominator of which shall be the sum of (A) the
      aggregate amount of the Brookdale Requested Refinancing plus (B) the
      aggregate amount of the Financing Costs in connection with such
      Brookdale Requested Financing), exceeds (y) one-twelfth (1/12th) of the
      product of (A) the Lease Rate (as of the date of determination)
      multiplied by (B) the Brookdale Requested Refinancing Basis or the
      Brookdale Requested Second Financing Basis, as the case may be; and

            (ii) with respect to the remaining portion (such amount, the "Base
      Refinancing Proceeds") of the Brookdale Requested Refinancing (i.e., the
      portion of the Brookdale Requested Refinancing equal to the difference
      between (x) the sum of (A) the aggregate amount of the Brookdale
      Requested Refinancing plus (B) the aggregate amount of the Financing
      Costs in connection with such Brookdale Requested Refinancing) minus (y)
      the Brookdale Requested Refinancing Basis):

<PAGE>

                  (x) if and only if such Brookdale Requested Refinancing is
      requested by BLC Holdings pursuant to Paragraph 12(c) of the Agreement
      Regarding Leases, the positive excess of (A) the monthly debt service
      (i.e., principal and interest payments) that is payable under the
      applicable Brookdale Requested Refinancing with respect to the Base
      Refinancing Proceeds (calculated by multiplying the aggregate debt
      service (i.e., principal and interest payments) by a fraction, the
      numerator of which is the Base Refinancing Proceeds and the denominator
      of which is the sum of (1) the aggregate amount of the Brookdale
      Requested Refinancing plus (2) the aggregate amount of Financing Costs
      in connection with such Brookdale Requested Financing) over (B) the debt
      service (i.e., principal and interest payments) that was payable under
      the entire Facility Mortgage prior to the closing of the applicable
      Facility Mortgage Refinancing; and

                  (y) with respect to the Base Refinancing Proceeds in cases
      in which PSLT-BLC Holdings delivered a Refinancing Notice (as defined in
      the Agreement Regarding Leases) to BLC Holdings under Paragraph 12(b) of
      the Agreement Regarding Leases and BLC Holdings exercises its option to
      obtain a portion of the proceeds of the proposed Facility Mortgage
      Refinancing, an amount equal to the excess, if any, between (A) the
      monthly debt service (i.e., principal and interest payments) that is
      payable under the applicable Brookdale Requested Refinancing with
      respect to the Base Refinancing Proceeds (calculated by multiplying the
      aggregate debt service (i.e., principal and interest payments) by a
      fraction, the numerator of which is the Base Refinancing Proceeds and
      the denominator of which is the sum of (1) the aggregate amount of the
      Brookdale Requested Refinancing plus (2) the aggregate amount of
      Financing Costs in connection with such Brookdale Requested Financing)
      over (B) the debt service (i.e., principal and interest payments) that
      would have been payable with respect to the same amount of loan proceeds
      (i.e., the Base Refinancing Proceeds) under the Proposed Financing
      Terms, if BLC Holdings had not exercised its option under Paragraph
      12(b) of the Agreement Regarding Leases and Landlord had closed such
      Facility Mortgage Refinancing on the Proposed Financing Terms.

      "Additional Rent" shall have the meaning given to such term in Paragraph
5(c).

      "Affiliate" shall mean, with respect to any Person, (i) in the case of
any such Person which is a partnership, any general partner in such
partnership or any limited partner holding, directly or indirectly, fifty
percent (50%) or more of the partnership interests in such partnership; (ii)
in the case of any such Person which is a limited liability company, the
managing member of such limited liability company or any other member of such
limited liability company holding, directly or indirectly, fifty percent (50%)
or more of the membership interests in such company; (iii) any other Person
which is a Parent, a Subsidiary, or a Subsidiary of a Parent with respect to
such Person or to one or more of the Persons referred to in the preceding
clauses (i) and (ii); (iv) any other Person who is an officer, director or
trustee of, or partner holding, directly or indirectly, fifty percent (50%) or
more of the partnership, membership or stock interests in, such Person or any
Person referred to in the preceding clauses (i), (ii) and (iii); and (v) any
other Person who is a member of the Immediate Family of such Person or of any
Person referred to in the preceding clauses (i) through (iv).

                                      2
<PAGE>

      "Affiliate Transfer" shall have the meaning given to such term in the
Agreement Regarding Leases.

      "Agreement Regarding Leases" means that certain Agreement Regarding
Leases dated as of the date hereof by and between PSLT-BLC Holdings and BLC
Holdings.

      "Annual Increase" shall mean:

            (a) with respect to the calendar year commencing on January 1,
      2006, an amount equal to the lesser of (i) 1.03 and (ii) one (1) plus
      the product of four (4) times the percentage increase in the Consumer
      Index (expressed as a decimal) as of January 1, 2006 (or the next
      preceding determination date) over the Base CPI Index; and

            (b) with respect to each calendar year thereafter (commencing on
      January 1st of each such calendar year) during the Term (including any
      Renewal Term), an amount equal to the lesser of (i) 1.03 and (ii) one
      (1) plus the product of four (4) times the percentage increase in the
      Consumer Index (expressed as a decimal) as of January 1st of such
      calendar year (or the next preceding determination date) over the
      Consumer Index that was applicable on January 1st of the immediately
      preceding calendar year;

            provided, however, that in no event shall the Annual Increase for
      any Lease Year be less than 1.0.

      "Applicable Floating Rate Index" shall mean the applicable interest rate
index (i.e., LIBOR, Prime or BMA) upon which the floating interest rate is
based under: (a) the Existing Facility Mortgage or (b) any Brookdale Requested
Refinancing.

      "Award" shall mean all compensation, sums or other value awarded, paid
or received by virtue of a complete or partial Condemnation of the Leased
Property (after deduction of all reasonable legal fees and other reasonable
costs and expenses, including, without limitation, expert witness fees,
incurred in connection with obtaining any such award).

      "Base CPI Index" shall mean the Consumer Index on the date hereof or the
determination date immediately prior to the date hereof.

      "Base Floating Rate Index" shall mean (i) with respect to the Existing
Facility Mortgage, ___% per annum,(1) and (ii) with respect to any Brookdale
Requested Refinancing, the Applicable Floating Rate Index in effect on the
date of the closing of such Brookdale Requested Refinancing.(2)

-----------------
(1) To be completed with the average value for the 2004 calendar-year-to-date
prior to the execution of the LOI. A list of the Base Floating Rate Indexes
(to be inserted into each of the applicable Property Leases) for each of the
Brookdale Properties with Floating Rate Loans is annexed hereto as Schedule 1.
(2) With respect to the two (2) mortgage loans affecting the Devonshire property
and listed on Schedule 1 annexed hereto, this definition shall be revised to
reflect the fact that the floating interest rate on such loans may be based on
either of two (2) indexes (LIBOR or Prime).

                                      3
<PAGE>

      "Base Rent" shall mean:

            (a) During the first month of the initial Lease Year, an amount
      equal to $__________________.

            (b) During each subsequent month during the Term, including any
      Renewal Term, an amount equal to one-twelfth (1/12th) of the sum of (i)
      the product of (A) the Lease Basis (as of the date of determination),
      multiplied by (B) the Lease Rate (as of the date of determination), plus
      (ii) the Floating Rate Adjustment, if applicable.

      "BLC Holdings" shall mean Brookdale Provident Properties, LLC, a
Delaware limited liability company.

      "Bond Documents" shall mean, with respect to any Facility Mortgage that
is structured as a bond financing, any and all documents evidencing, securing
or otherwise entered into in connection with the outstanding obligations to
the applicable issuer.

      "Brookdale Requested Refinancing" shall have the meaning given to such
term in the Agreement Regarding Leases.

      "Brookdale Requested Refinancing Basis" shall have the meaning given to
such term in the Agreement Regarding Leases.

      "Brookdale Requested Second Financing Basis" shall have the meaning
given to such term in the Agreement Regarding Leases.

      "Business Day" shall mean any day other than Saturday, Sunday, or any
other day on which the Federal Reserve system is authorized by law or
executive action to close.

      "Capital Accretion Amounts" shall mean the sum of all of the following
amounts made by Landlord through the date of determination: (1) Capital
Addition Allowances, (2) Mandatory Capital Addition Allowances, (3) any
Brookdale Requested Refinancing Basis and (4) any Brookdale Requested Second
Financing Basis.

      "Capital Addition" shall mean one or more new buildings, or one or more
additional structures annexed to any portion of the Leased Improvements with
respect to the Leased Property, or the material expansion of existing
improvements, which are constructed on any parcel or portion of the Land
during the Term, including the construction of a new wing or new story, the
renovation of existing improvements on the Leased Property in order to provide
a functionally new facility needed to provide services not previously offered,
or any expansion, construction, renovation or conversion in order to increase
the number of units of the Facility, to change the purpose for which such
units are utilized or to improve materially the quality of the Facility, or
any related improvement whose cost would be treated as a capital expenditure
under GAAP.

      "Capital Addition Allowance" shall have the meaning set forth in
Paragraph 11(d).

                                      4
<PAGE>

      "Capital Additions Cost" shall mean the cost of any Capital Addition
made to the Facility in accordance with the terms of this Lease. Such cost
shall include, but not be limited to, the following: (i) the cost of
construction of the Capital Addition, including site preparation and
improvement, materials, labor, supervision, developer and administrative fees,
legal fees, and costs of related design, engineering and architectural
services, the cost of any fixtures, the cost of equipment and other
personalty, the cost of construction financing (including, but not limited to,
capitalized interest) and other miscellaneous costs approved by Landlord,
which approval shall not be unreasonably withheld or delayed, (ii) if agreed
to by Landlord in writing, in advance, the cost of any land (including all
related acquisition costs incurred by Tenant) contiguous to the Facility to
which such additional land is to become a part for the purpose of placing
thereon a Capital Addition or any portion thereof or for providing means of
access thereto, or parking facilities therefor, including the cost of
surveying the same; (iii) the cost of insurance, real estate taxes, water and
sewage charges and other carrying charges for such Capital Addition during
construction; (iv) title insurance charges; (v) reasonable attorneys' fees and
expenses; (vi) filing, registration and recording taxes and fees; (vii)
documentary stamp or transfer taxes, and (viii) all actual and reasonable
costs and expenses of Tenant incurred in connection with such Capital
Addition; provided, however, that in no event shall the direct or indirect
costs of any employees of Tenant be deemed a Capital Additions Cost (other
than construction management agreements that are arms-length and have market
terms).

      "Capital Additions Reserve" shall have the meaning given to such term in
Paragraph 25(d).

      "Casualty" shall have the meaning given to such term in Paragraph 17(a).

      "Change of Control" shall have the meaning given to such term in the
Agreement Regarding Leases.

      "Claims" shall have the meaning given to such term in Paragraph 26.

      "Code" shall mean the Internal Revenue Code of 1986 and, to the extent
applicable, the Treasury Regulations promulgated thereunder, each as from time
to time amended.

      "Commencement Date" shall mean the date of this Lease.

      "Condemnation" shall mean, with respect to the Leased Property, (i) the
exercise of any governmental power with respect to the Leased Property,
whether by legal proceedings or otherwise, by a Condemnor of its power of
condemnation; (ii) a voluntary sale or transfer of the Leased Property by
Landlord to any Condemnor, either under threat of condemnation or while legal
proceedings for condemnation are pending; and (iii) a taking or voluntary
conveyance of all or part of the Leased Property, or any interest therein, or
right accruing thereto or use thereof, as the result or in settlement of any
condemnation or other eminent domain proceeding affecting the Leased Property,
whether or not the same shall have actually been commenced.

      "Condemnor" shall mean any public or quasi-public authority, or private
corporation or individual, having the power of Condemnation.

                                      5
<PAGE>

      "Consumer Index" shall mean the Consumer Price Index for all Urban
Consumers (CPI-U), U.S. City Average, All Items Less Food and Energy
(1982-1984=100) as published by the Bureau of Labor Statistics of the U.S.
Department of Labor, or if it ceases publication, a successor index measuring
the price of comparable market basket of consumer goods published by the
United States or any agency or department thereof.

      "Date of Taking" shall mean the date the Condemnor has the right to
possession of the Leased Property, or any portion thereof, in connection with
a Condemnation.

      "Default" shall mean any event or condition that, with the giving of
notice and/or lapse of time, may ripen into an Event of Default.

      "Entity" shall mean any general partnership, limited partnership,
limited liability company, limited liability partnership, corporation, joint
venture, trust, business trust, cooperative or association.

      "Environment" shall mean soil, surface waters, ground waters, land,
stream, sediments, surface or subsurface strata, ambient air and the indoor
environment.

      "Environmental Laws" shall mean all applicable laws, statutes,
regulations, rules, ordinances, codes, licenses, permits and orders of all
courts of competent jurisdiction and Government Agencies, and all applicable
judicial and administrative and regulatory decrees, judgments and orders,
including common law rulings and determinations, relating to injury to, or the
protection of, the Environment, including, without limitation, all valid and
lawful requirements of courts and other Government Agencies pertaining to
reporting, licensing, permitting, Remediation and removal of underground
improvements (including, without limitation, treatment or storage tanks, or
water, gas or oil wells), or emissions, discharges, Releases or threatened
Releases, or relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Substances.

      "Equity Transfer" shall have the meaning given to such term in Paragraph
6(c) of the Agreement Regarding Leases.

      "Escrow Agent" shall have the meaning given to such term in Paragraph
17(b).

      "Event of Default" shall have the meaning given to such term in
Paragraph 21(a).

      "Existing Facility Mortgage" means the Facility Mortgage in effect on
the Commencement Date.

      "Expiration Date" shall have the meaning given to such term in Paragraph
4(a), as the same may be extended pursuant to Paragraph 4(b).

      "Extraordinary Capital Expenditures" shall mean expenditures incurred in
connection with Capital Additions to the Facility which are not contemplated
by the then current capital budget and other non-recurring expenditures
incurred by Tenant with respect to the Facility that are not ordinary course
repair and maintenance items.

                                      6
<PAGE>

      "Facility" shall mean the independent and/or assisted living facility
being operated or proposed to be operated on the Leased Property.

      "Facility Mortgage" shall mean any encumbrance securing the repayment of
indebtedness (and including any obligations in connection with credit
enhancement) now or hereafter placed upon the fee simple interest [PONCE DE
LEON: ground leasehold interest] in the Leased Property, together with all
other documents and instruments evidencing or securing the indebtedness
secured thereby.

      "Facility Mortgage Requirements" shall mean all covenants, agreements,
restrictions and encumbrances contained in the Existing Mortgage or any future
Facility Mortgage in effect from time to time, other than any covenants and
agreements with respect to the payment of the Indebtedness secured thereby.

      "Facility Mortgage Refinancing" shall have the meaning given to such
term in the Agreement Regarding Leases.

      "Facility Mortgagee" shall mean the holder of a Facility Mortgage.

      "Facility State" shall mean the State in which the Facility is located.

      "Fair Market Lease Rate" shall mean, as determined by agreement between
Landlord and Tenant or, failing agreement and upon demand by either party, the
appraisal procedures set forth in Paragraph 53, a percentage per annum that,
when multiplied by the Lease Basis in effect at the commencement of the first
Renewal Term or the second Renewal Term, as the case may be, equals an amount
that an uncompelled, willing tenant would pay, and an uncompelled, willing
landlord would accept, at arm's length, for leasing of the Leased Property for
the first Renewal Term or the second Renewal Term, as the case may be, taking
into account all other terms of this Lease and the Agreement Regarding Leases.
In addition to such other market factors as may be applicable in determining
the Fair Market Lease Rate, the Fair Market Lease Rate shall be determined on
the basis, and on the assumptions, that the Leased Property is in material
compliance with any and all Legal Requirements and Insurance Requirements and
has in full force and effect, for the benefit of the aforesaid tenant, the
Facility and the Leased Property, any and all necessary or appropriate
material permits, approvals and licenses necessary or advisable for use of the
Facility in accordance with the Intended Use.

      "Fair Market Value" shall mean, as determined by agreement between
Landlord and Tenant or, failing agreement and upon demand by either party, the
appraisal procedures set forth in Paragraph 53, the amount that an
uncompelled, willing buyer would pay, and an uncompelled, willing seller would
accept, at arm's length, for a fee simple interest in the Leased Property
[PONCE DE LEON: ground leasehold interest in the Leased Property], including
all Capital Additions thereto and all Related Personal Property. In addition
to such other market factors as may be applicable in determining the Fair
Market Value, the Fair Market Value shall be determined on the basis, and on
the assumptions, that, (i) the Leased Property is unencumbered by this Lease
or the Agreement Regarding Leases, (ii) the Leased Property is in material
compliance with any and all applicable laws, codes, ordinances and regulations
and other Legal Requirements, and (iii) the Leased Property, for the benefit
of the aforesaid buyer, has in full

                                      7
<PAGE>

force and effect any and all necessary or appropriate material permits,
approvals, licenses, and other consents comparable to those necessary or
advisable for use thereof in accordance with its Intended Use.

      "Floating Rate Adjustment" shall mean an amount, computed on a monthly
basis, equal to the product of (a) the Percentage Change in the Applicable
Floating Rate Index used in connection with the Existing Facility Mortgage or
any Brookdale Requested Refinancing, multiplied by (b) the outstanding
principal amount (as of the date of determination) of either (i) any floating
rate Existing Facility Mortgage or (ii) any floating rate Brookdale Requested
Refinancing, whichever is in place on the date of determination; provided,
however, that (x) the Floating Rate Adjustment shall not apply to the
calculation of Base Rent after the maturity date of the Existing Facility
Mortgage or any Brookdale Requested Refinancing, and (y) in determining the
Percentage Change in the Applicable Floating Rate Index, in no event shall the
Applicable Floating Rate Index as of the date of determination equal an amount
greater than the strike price under any applicable interest rate cap agreement
purchased in connection with the Existing Facility Mortgage or a Brookdale
Requested Refinancing, as the case may be.

      "GAAP" shall mean generally accepted accounting principles, consistently
applied, and being principally derived from promulgations of The Financial
Accounting Standards Board and The American Institute of Certified Public
Accountants, or their successors.

      "Government Agency" shall mean any court, agency, authority, board
(including, without limitation, environmental protection, planning and
zoning), bureau, commission, department, office or instrumentality of any
nature whatsoever of any governmental or quasi-governmental unit of the United
States or the Facility State or any county or any political subdivision of any
of the foregoing, whether now or hereafter in existence, having jurisdiction
over Landlord or Tenant or the Leased Property or any portion thereof or the
Facility operated thereon.

      "Ground Lease" shall mean _________________________.  [For Ponce de Leon
only].

      "Ground Rents" shall have the meaning given to such term in Paragraph
5(f). [For Ponce de Leon only].

      "Guarantor" shall mean the Person that is the "guarantor" under the
Guaranty of Agreement Regarding Leases. The initial Guarantor is Brookdale
Living Communities, Inc. (formerly known as BLC Senior Holdings, Inc.).

      "Guaranty" shall mean that certain Guaranty of Agreement Regarding
Leases made by Guarantor in favor of PSLT-BLC Holdings in the form of Exhibit
D annexed to the Agreement Regarding Leases.

      "Hazardous Materials" shall mean any substance (whether solid, liquid or
gaseous in nature):

            (a) the presence of which requires or may hereafter require
      notification or Remediation under any federal, state or local statute,
      regulation, rule, ordinance, order, action or policy; or

                                      8
<PAGE>

            (b) which is or becomes defined as a "hazardous waste", "hazardous
      material" or "hazardous substance" or "pollutant" or "contaminant" under
      any present or future federal, state or local statute, regulation, rule
      or ordinance or amendments thereto including, without limitation, the
      Comprehensive Environmental Response, Compensation and Liability Act (42
      U.S.C. et seq.) and the Resource Conservation and Recovery Act (42
      U.S.C. Section 6901 et seq.) and the regulations promulgated thereunder;
      or

            (c) which is toxic, explosive, corrosive, flammable, infectious,
      radioactive, carcinogenic or otherwise hazardous and is or becomes
      regulated by any governmental authority, agency, department, commission,
      board, agency or instrumentality of the United States, any state of the
      United States, or any political subdivision thereof; or

            (d) the presence of which on the Leased Property causes or
      reasonably threatens to cause a violation of Environmental Laws upon the
      Leased Property or to adjacent properties or poses or reasonably
      threatens to pose a hazard to the health or safety of persons on or
      about the Leased Property; or

            (e) without limitation, which contains gasoline, diesel fuel or
      other petroleum hydrocarbons or volatile organic compounds; or

            (f) without limitation, which contains polychlorinated biphenyls
      (PCBs) or asbestos or urea formaldehyde foam insulation; or

            (g) without limitation, which contains or emits radioactive
      particles, waves or material; or

            (h) without limitation, constitutes Regulated Medical Wastes.

      "Immediate Family" shall mean, with respect to any individual, such
individual's spouse, parents, brothers, sisters, children (natural or
adopted), stepchildren, grandchildren, grandparents, parents-in-law,
brothers-in-law, sisters-in-law, nephews and nieces.

      "Impositions" shall mean all taxes (including, without limitation, all
taxes imposed under the laws of the Facility State, as such laws may be
amended from time to time, and all ad valorem, sales and use, single business,
gross receipts, transaction privilege, rent or similar taxes as the same
relate to or are imposed upon Landlord, Tenant or the business conducted upon
the Leased Property or additional federal and state taxes, interest or
penalties, arising out of the Leased Property's non-compliance with Legal
Requirements), assessments (including, without limitation, all assessments for
public improvements or benefit, whether or not commenced or completed prior to
the date hereof and whether or not to be completed within the Term), water,
sewer or other rents and charges, excises, tax levies, fees (including,
without limitation, license, permit, inspection, authorization and similar
fees), all other governmental charges, in each case whether general or
special, ordinary or extraordinary, or foreseen or unforeseen, of every
character in respect of the Leased Property or the business conducted thereon
by Tenant (including all interest and penalties thereon due to any failure in
payment by Tenant), which at any time prior to, during or in respect of the
Term hereof may be assessed or imposed on or in respect of or be a lien upon
(a) Landlord's interest in the Leased Property, (b) the Leased

                                      9
<PAGE>

Property or any part thereof or any rent therefrom or any estate, right, title
or interest therein, or (c) any occupancy, operation, use or possession of, or
sales from, or activity conducted on, or in connection with the Leased
Property or the leasing or use of the Leased Property or any part thereof by
Tenant, and shall include any tax being contested during the period that such
taxes are being contested, which tax, and any interest and penalties
attributable thereto, shall nevertheless be treated as a Claim within the
meaning of Paragraph 25; provided, however, that nothing contained herein
shall be construed to require Tenant to pay, and the term "Impositions" shall
not include: (i) any tax based on the net income of the Landlord, except for
federal and state taxes arising out of non-compliance with Legal Requirements,
(ii) any net revenue tax of Landlord, (iii) any transfer fee or other similar
tax imposed with respect to the sale, exchange or other disposition by
Landlord of the Leased Property or any portion thereof or the proceeds
thereof, (iv) any single business, gross receipts, transaction privilege, rent
or similar taxes (other than a commercial rent, sale, use or occupancy type
tax or tax imposed with respect to the rental or occupancy of the Leased
Property) as the same relate to or are imposed upon Landlord, (v) taxes
attributable to a period after the expiration or earlier termination of the
Initial Lease Term or any Renewal Term (if applicable), (vi) taxes, interest,
penalties and additions to tax imposed solely as a result of the failure of
the Landlord to duly file any tax return required to be filed by Landlord,
(vii) taxes imposed solely as a result of the Landlord's breach of any
covenant or the inaccuracy of any representation or warranty of the Landlord
in any of the Operative Documents, (viii) taxes imposed on Landlord to the
extent that Landlord receives a credit (or otherwise has a reduction in
liability for such taxes) in respect of such taxes, (ix) taxes resulting from
the gross negligence or willful misconduct of the Landlord, (x) taxes to the
extent that such taxes would have been imposed on the Landlord in the absence
of any of the transactions contemplated by the Operative Documents, (xi) taxes
imposed on any transferee of Landlord pursuant to the laws in effect at the
time of the transfer to such transferee, to the extent such tax exceeds the
amount of such tax indemnified against hereunder that would have been imposed
on the transferor, (xii) taxes imposed by ERISA or Section 4975 of the
Internal Revenue Code to the extent resulting from any act or omission of
Landlord or its Affiliates, and (xiii) withholding taxes imposed on payments
to non-U.S. persons. Impositions shall include interest, penalties and
additions to taxes only to the extent that the taxes to which such items
relate are treated as Impositions hereunder. Any refund of taxes or other
items that are treated as Impositions hereunder shall be for the benefit of
Tenant. References to Landlord as contained in this definition of Impositions
shall include, as applicable, Affiliates of Landlord, and references to the
"Operative Documents" shall mean the Lease and the Agreement Regarding Leases.
Notwithstanding any other provision hereof to the contrary, Impositions shall
not include any taxes arising as a result of any failure of Landlord (or any
Affiliate) to qualify as a real estate investment trust for federal income tax
purposes, or under any corresponding state or local tax law.

      "Improvements" shall have the meaning given such term in Paragraph 2.

      "Initial Term" shall have the meaning given to such term in Paragraph
4(a).

      "Inspection Report" shall have the meaning given to such term in
Paragraph 13(b).

      "Insurance Requirements" shall mean all terms of any insurance policy
required by this Lease and all requirements of the issuer of any such policy.

                                      10
<PAGE>

      "Intended Use" shall have the meaning given such term in Paragraph 7(a).

      "Land" shall have the meaning given such term in Paragraph 2.

      "Landlord" shall have the meaning given such term in the preamble to
this Lease.

      "Landlord Capital Addition" shall have the meaning given to such term in
Paragraph 11(c).

      "Lease" shall mean this Property Lease Agreement including the Exhibits
attached hereto, as it and they may be amended from time to time as herein
provided.

      "Lease Basis" shall mean $______________(3) as of the date of this
Lease,(4) as such amount shall be (a) increased from time to time in
accordance with the terms of this Lease and the Agreement Regarding Leases by
the amount of any Capital Accretion Amounts or otherwise as expressly provided
herein or therein, and (b) decreased from time to time in connection with the
receipt by Landlord of (i) any Awards in any Condemnation in accordance with
Paragraph 23, and (ii) the amount of any payment made (other than in
connection with any third party claims) by Guarantor under the indemnity
provisions set forth in Article 8 of that certain Stock Purchase Agreement
dated as of June __, 2004, among Fortress Brookdale Acquisition LLC, Provident
Senior Living Trust and BLC Senior Holdings, Inc., to the extent such payment
relates specifically to the Leased Property, or, if any such payment under
said indemnification provisions relates to more than one (1) Leased Property
or does not relate to any particular Leased Property (or Leased Properties),
then the amount of any such indemnity payment shall be divided ratably across
the Facilities (as defined in the Agreement Regarding Leases); provided,
however, that during each Renewal Term, the Lease Basis shall mean, as
determined in accordance with the provisions of Paragraph 3(b) of the
Agreement Regarding Leases, an amount equal to the greater of: (x) the Lease
Basis for the immediately preceding calendar month and (y) the Fair Market
Value of the Leased Property, as such amounts in (x) and (y) above shall be
(A) increased from time to time in accordance with the terms of this Lease and
the Agreement Regarding Leases by the amount of any Capital Accretion Amounts,
and (B) decreased from time to time in connection with the receipt by Landlord
of any Awards in any Condemnation in accordance with Paragraph 23.

      "Lease Guarantor" shall mean the Person that is the "guarantor" under
the Lease Guaranty. The initial Lease Guarantor is Brookdale Provident
Properties, LLC.

      "Lease Guaranty" shall mean that certain guaranty made by Lease
Guarantor in favor of Landlord in the form of Exhibit D annexed hereto.

-----------------
(3) The list of the Lease Basis for each of the Brookdale Properties is attached
hereto as Schedule 2. The amounts set forth on Schedule 2 are the amounts,
subject to adjustment as set forth in footnote 3 hereof, that will be inserted
into each Property Lease for the Brookdale Sale-Leaseback transaction.

(4) This amount will include the amount, if any, of any deferred maintenance
items or necessary capital expenditures identified during the due diligence
period which Tenant elects under the Stock Purchase Agreement to have Landlord
finance for Tenant during the Term of this Lease.

                                      11
<PAGE>

      "Lease Rate" shall mean:

      (a) initially, 8.10%;

      (b) commencing on January 1, 2006, and for each month thereafter during
the Lease Year commencing on such date, the product of (i) 8.10% times (ii)
the Annual Increase applicable on January 1, 2006;

      (c) commencing on January 1, 2007 and on January 1st of each Lease Year
thereafter during Initial Term, the product of (i) the Lease Rate in effect
during December of the immediately preceding Lease Year, times (ii) the Annual
Increase applicable for the Lease Year commencing on such date;

      (d) on the first month of the first Renewal Term, the greater of: (x)
the Lease Rate in effect during the last calendar month of the Initial Term
times the Annual Increase in effect for the first month of the first Renewal
Term, and (y) the Fair Market Lease Rate, as the same shall be increased by
the Annual Increase on January 1st of each calendar year after the first Lease
Year of the first Renewal Term by multiplying (A) the applicable Lease Rate in
effect during December of the immediately preceding Lease Year, times (B) the
Annual Increase in effect for the Lease Year commencing on such date; and

      (e) on the first month of the second Renewal Term, the greater of: (x)
the Lease Rate in effect during the last calendar month of the first Renewal
Term times the Annual Increase in effect for the first month of the second
Renewal Term, and (y) the Fair Market Lease Rate, as the same shall be
increased by the Annual Increase on January 1st of each Lease Year after the
first Lease Year of the second Renewal Term by multiplying (A) the applicable
Lease Rate in effect during December of the immediately preceding Lease Year,
times (B) the Annual Increase in effect for the Lease Year commencing on such
date.

      "Lease Year" shall mean each twelve month period commencing on January
1st during the Term, provided that the first Lease Year shall be the period of
time from the Commencement Date through December 31, 2005.

      "Leased Property" shall have the meaning given to such term in Paragraph
2.

      "Legal Requirements" shall mean all federal, state, county, municipal
and other governmental statutes, laws, rules, orders, regulations, ordinances,
judgments, decrees and injunctions affecting the Leased Property or the
maintenance, construction, alteration or operation thereof, whether now or
hereafter enacted or in existence, including, without limitation, (i) all
permits, licenses, certificates of need, authorizations and regulations
necessary to operate the Leased Property for the Intended Use, and (ii) all
requirements of any Third Party Payor Programs.

      "Lien" shall mean any mortgage, security interest, pledge, collateral
assignment, or other encumbrance, lien or charge of any kind, or any transfer
of any property or assets for the purpose of subjecting the same to the
payment of indebtedness or performance of any other obligation in priority to
payment of its general creditors.

                                      12
<PAGE>

      "Mandatory Capital Addition Allowance" shall have the meaning given to
such term in the Agreement Regarding Leases.

      "Management Agreement" shall mean that certain Management Agreement of
even date herewith by and between Tenant and Manager.

      "Manager" shall mean the Person that is the "manager" under a management
agreement pursuant to the terms of Paragraph 25(b). The initial Manager is
Brookdale Provident Management, LLC, a Delaware limited liability company.

      "Mandatory Capital Addition" shall have the meaning given to such term
in the Agreement Regarding Leases.

      "Minimum Capital Additions Amount" shall have the meaning given to such
term in Paragraph 25(d).

      "Minimum Option Purchase Price" shall have the meaning give to such term
in the Agreement Regarding Leases.

      "Non-Capital Additions" shall have the meaning given such term in
Paragraph 11(b).

      "Notice" shall mean a notice given or received in accordance with
Paragraph 31.

      "Officer's Certificate" shall mean a certificate signed by an officer of
Tenant (or an officer of the **[manager/managing member]** of Tenant) duly
authorized by the **[board of managers/members/board of directors]** of
Tenant.

      "Other Requirements" shall mean all covenants, agreements, restrictions
and encumbrances contained in any Permitted Encumbrances affecting the Leased
Property, other than any Facility Mortgage or Bond Documents.

      "Overdue Rate" shall mean, on any date, a per annum rate of interest
equal to the lesser of (i) ten percent (10%) and (ii) the maximum rate then
permitted under applicable law, calculated from the date any payment
obligation is due (except with respect to payments which are indeterminable
prior to notice from Landlord, in which event the Overdue Rate shall be
calculated from the 10th day following the date such notice was received).

      "Parent" shall mean, with respect to any Person, any Person which owns
directly, or indirectly through one or more Related Parties, fifty percent
(50%) or more of the voting or beneficial interest in such Person, or
otherwise has the right or power (whether by contract, through ownership of
securities or otherwise) to control such Person.

      "Percentage Change" shall mean the change in the Applicable Floating
Rate Index and shall be the difference (positive or negative) obtained by
subtracting (i) the Applicable Floating Rate Index as of the date of
determination from (ii) the Base Floating Rate Index.

      "Permits and Licenses" shall mean all permits, licenses, certificates of
need, provider agreements and other authorizations and approvals required
under applicable Legal

                                      13
<PAGE>

Requirements or otherwise maintained by Tenant in connection with the
ownership of the Facility for its Intended Use.

      "Permitted Encumbrances" shall mean all rights, restrictions, and
easements of record set forth on Schedule B to the owner's title insurance
policy and any other matters of record on the date of this Lease, and any
other covenants, restrictions, encumbrances or similar instruments as may
after the date hereof be granted or caused by Landlord or otherwise consented
to in writing by Landlord from time to time and which covenants, restrictions,
encumbrances or similar instruments arising after the date hereof (other than
Facility Mortgages) have been approved by Tenant, such approval not to be
unreasonably withheld, conditioned or delayed.

      "Permitted Transfer" shall have the meaning given to such term in the
Agreement Regarding Leases.

      "Person" shall mean any individual or Entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of such Person
where the context so requires.

      "Pre-existing Condition" shall have the meaning given to such term in
Paragraph 51.

      "Proposed Financing Terms" shall have the meaning given to such term in
the Agreement Regarding Leases.

      "PSLT-BLC Holdings" shall mean **[PSLT-BLC Properties, LLC]**, a
Delaware limited liability company.

      "Regulated Medical Wastes" shall mean all materials generated by Tenant,
subtenants, patients, occupants or operators of the Leased Property which are
now or may hereafter be subject to regulation pursuant to the Medical Waste
Tracking Act of 1988, or any similar Environmental Law promulgated by any
Government Agencies.

      "Related Party" shall mean, with respect to any Person, (i) in the case
of any such Person which is a partnership, any general partner in such
partnership or any limited partner holding, directly or indirectly, ten
percent (10%) or more of the partnership interests in such partnership; (ii)
in the case of any such Person which is a limited liability company, the
managing member of such limited liability company or any member of such
limited liability company holding, directly or indirectly, ten percent (10%)
or more of the membership interests in such company; (iii) any other Person
which is a Parent, a Subsidiary, or a Subsidiary of a Parent with respect to
such Person or to one or more of the Persons referred to in the preceding
clauses (i) and (ii); (iv) any other Person who is an officer, director or
trustee of, or partner holding, directly or indirectly, ten percent (10%) or
more of the partnership, membership or stock interests in, such Person or any
Person referred to in the preceding clauses (i), (ii) and (iii); and (v) any
other Person who is a member of the Immediate Family of such Person or of any
Person referred to in the preceding clauses (i) through (iv).

      "Related Personal Property" shall mean all motor vehicles and consumable
inventory and supplies, furniture, furnishings, fixtures, movable walls and
partitions, equipment and machinery and all other personal property located at
the Leased Property or used in Tenant's business at the Leased Property,
whether located at the Leased Property on the date hereof or acquired after
the

                                      14
<PAGE>

date hereof, and all modifications, replacements, alterations and additions to
such personal property installed at the expense of Tenant during the Term;
provided, however, that the "Related Personal Property" shall not include the
Residents' Personal Property.

      "Release" shall mean the presence, release, spill, emission, leaking,
emitting, pumping, injection, deposit, disposal, discharge, dispersal,
leaching or migration of Hazardous Materials in or into the Environment,
including, but not limited to, the movement of Hazardous Materials through the
air, soil, surface water or groundwater.

      "Remediation" or "Remediate" shall mean any action to (i) investigate,
study, monitor, clean up, remove, treat, respond to or in any other way
address Hazardous Materials in the Environment; or (ii) prevent the Release or
minimize the further Release of Hazardous Materials.

      "Renewal Term" shall have the meaning given to such term in Paragraph
4(b).

      "Rent" shall mean, collectively, the Base Rent and the Additional Rent.

      "Residents' Personal Property" shall mean such items of furniture,
clothing and other personalty that is the property of any of the residents of
any of the units at the Leased Property.

      "SEC" shall mean the Securities and Exchange Commission.

      "Subsidiary" shall mean, with respect to any Person, any Entity (a) in
which such Person owns directly, or indirectly through one or more
Subsidiaries, fifty percent (50%) or more of the voting or beneficial
interest, or (b) which such Person otherwise has the right or power to control
(whether by contract, through ownership of securities or otherwise).

      "Tenant" shall have the meaning given such term in the preamble to this
Lease.

      "Term" shall have the meaning given such term in Paragraph 4(b).

      "Third Party Payor Programs" shall mean all third party payor programs
in which Tenant presently or in the future may participate, including, without
limitation, Medicare, Medicaid, CHAMPUS, Blue Cross and/or Blue Shield,
Managed Care Plans, other private insurance programs and employee assistance
programs.

      "Third Party Payors" shall mean Medicare, Medicaid, CHAMPUS, Blue Cross
and/or Blue Shield, private insurers and any other Person which presently or
in the future provides Third Party Payor Programs.

      "Unsuitable for its Intended Use" shall mean a state or condition of the
Facility as a whole, such that (i) following any damage or destruction
involving the Facility, the Facility cannot reasonably be expected to be
restored to substantially the same condition as existed immediately before
such damage or destruction, within eighteen (18) months following such damage
or destruction or such other longer period of time as to which business
interruption insurance is available to fully cover Rent and other costs
related to the Facility following such damage or destruction; or (ii) as the
result of a partial taking by Condemnation, the Facility or Improvements, as
the case may be, cannot be operated, in the good faith judgment of Landlord

                                      15
<PAGE>

and Tenant, on a commercially practicable basis for its Intended Use, taking
into account, among other relevant factors, the number of usable units, the
amount of square footage or the revenues affected by such partial taking.

2.    Leased Property. Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, subject to the conditions hereinafter expressed: (a)
that certain parcel of land and the easements, rights and appurtenances
related thereto, more particularly described on Exhibit A hereto (the "Land");
(b) improvements on the Land, including, without limitation, the senior
independent and/or assisted living facilities together with related paved
parking and appurtenant improvements and any replacements thereof
(collectively, the "Improvements"); and (c) the Related Personal Property. As
used herein, the Land, the Improvements and the Related Personal Property at
any time subject to the terms of this Lease are referred to as the "Leased
Property". The Leased Property does not include the Resident's Personal
Property.

3.    Condition of Leased Property. Tenant acknowledges and agrees that the
Leased Property is and shall be leased by Landlord to Tenant in its "as-is"
condition, as of the Commencement Date and at all times thereafter, subject to
all liens, encumbrances and restrictions affecting the Leased Property.
Landlord makes absolutely no representations or warranties whatsoever with
respect to the Leased Property or the condition thereof, either to its fitness
for use, condition, purpose or otherwise as to the quality or material or
workmanship therein, latent or patent, it being agreed that all such risks are
to be borne by Tenant. Tenant acknowledges that Landlord has not investigated
and does not warrant or represent to Tenant that the Leased Property is fit
for the Intended Use or for any other purposes whatsoever. Tenant acknowledges
that Tenant shall be solely responsible for any and all actions, repairs,
permits, approvals and costs required for the rehabilitation, renovation, use,
occupancy and operation of the Leased Property in accordance with applicable
Legal Requirements, Facility Mortgage Requirements, Other Requirements and
Insurance Requirements. By leasing the Leased Property, Tenant warrants and
represents to Landlord that Tenant has examined and approved all things
concerning the Leased Property which Tenant deems material to Tenant's leasing
and use of the Leased Property. Tenant further acknowledges and agrees that:
(i) neither Landlord nor any agent of Landlord has made any representation or
warranty, express or implied, concerning the Leased Property or which have
induced Tenant to execute this Lease except as expressly contained in this
Lease; and (ii) any other representations and warranties are expressly
disclaimed by Landlord.

4.    Term.

      (a) Initial Term. This Lease shall be for an initial term (the "Initial
Term") commencing on the Commencement Date, and ending at midnight December
31, 2019, unless modified or earlier terminated pursuant to the terms hereof
(as such date may be extended pursuant to the terms of the Agreement Regarding
Leases, the "Expiration Date").

      (b) Renewal Terms. Subject to the conditions set forth in Paragraph 3(b)
of the Agreement Regarding Leases, this Lease may be renewed by BLC Holdings
pursuant to Paragraph 3(b) of the Agreement Regarding Leases for two (2)
additional consecutive ten (10) year periods (each, a "Renewal Term", and
collectively, the "Renewal Terms"), and upon such renewal, this Lease shall
automatically, and without any action by any Person, be deemed to

                                      16
<PAGE>

have been extended for the applicable Renewal Term for which BLC Holdings has
exercised such option. As used herein, the Initial Term and the Renewal
Term(s), if exercised, shall be referred to hereinafter collectively as the
"Term."

5.    Rent.

      (a) Rent. Tenant shall pay Rent to Landlord (or to such Person as
Landlord may direct (in writing)) during the Term, in lawful money of the
United States of America which shall be legal tender for the payment of public
and private debts, without offset, abatement, demand or deduction, except as
hereinafter expressly provided. All payments of Rent to Landlord shall be made
by wire transfer of immediately available federal funds or by other means
acceptable to Landlord in its sole discretion. Base Rent and Additional Debt
Service Costs for any partial month shall be prorated on a per diem basis
based on a 360 day year and twelve (12) thirty (30) day months. In addition,
if directed to do so by Landlord in writing, Tenant shall pay a portion of the
Base Rent directly to any Facility Mortgagee in an amount specified in such
Notice to Tenant. Notwithstanding the foregoing, if in connection with any
Facility Mortgage Landlord is unable to obtain from the Facility Mortgagee a
Subordination Agreement not to disturb Tenant's right to possession in the
event of a foreclosure of such Facility Mortgage, then Tenant shall have the
right, at Tenant's sole election, to pay directly to the Facility Mortgagee
all monthly payments due and payable or otherwise required thereunder. If
Tenant elects to make such payments directly to the Facility Mortgagee, then
(i) upon each monthly payment Tenant shall simultaneously therewith deliver to
Landlord evidence reasonably acceptable to Landlord that such payment was
made, and (ii) Tenant hereby agrees to indemnify, defend and hold harmless
Landlord from any claims, losses or damages that Landlord suffers as a result
of any failure, default or defect in Tenant's making such payment on
Landlord's behalf. Any payments made directly by Tenant under this Paragraph
may be off-set against Base Rent payable by Tenant during such calendar month.

      (b) Base Rent. Base Rent shall be paid in arrears on the first (1st) day
of each calendar month for the immediately preceding month.

      (c) Additional Rent. Tenant shall pay as additional rent hereunder
("Additional Rent"), all other charges and amounts payable in accordance with
the terms of this Lease. Except as otherwise provided herein, any costs or
expenses paid or incurred by Landlord on behalf of Tenant that constitute
Additional Rent shall be reimbursed by Tenant to Landlord within ten (10) days
after the delivery by Landlord to Tenant of invoices therefor.

      (d) Additional Debt Service Costs. Tenant shall pay as Additional Rent
hereunder all Additional Debt Service Costs in connection with any Brookdale
Requested Refinancing, as applicable. All such Additional Debt Service Costs
shall be payable in the same manner and at the same times as Base Rent is
payable hereunder.

      (e) **[Ground Lease Payments. Tenant shall pay as Additional Rent
hereunder all rental and other amounts payable under the Ground Lease ("Ground
Rents"). Tenant shall pay all Ground Rents to Landlord not later than ten (10)
days prior to the due date thereof. [NOTE: This provision applies only to
Ponce de Leon.] [Notwithstanding the foregoing, if Landlord is unable to
obtain from the landlord under the Ground Lease an agreement (in form
reasonably

                                      17
<PAGE>

satisfactory) to Tenant not to disturb Tenant's right to possession in the
event of a termination of the Ground Lease in the form substantially similar
to the Subordination Agreement (with such changes as are required to conform
same to account for a ground lease rather than a mortgage loan), Tenant shall
have the right, at Tenant's sole election, to pay directly to the landlord
under the Ground Lease all rent and other monthly payments due and payable
thereunder. If Tenant elects to make such payments directly to the landlord
under the Ground Lease, then (i) upon each monthly payment Tenant shall
simultaneously therewith deliver to Landlord evidence reasonably acceptable to
Landlord that such payment was made, and (ii) Tenant hereby agrees to
indemnify, defend and hold harmless Landlord from any claims, losses or
damages that Landlord suffers as a result of any failure, default or defect in
Tenant's making such payment on Landlord's behalf. Any payments made directly
by Tenant under this Paragraph may be off-set against Base Rent payable by
Tenant during such calendar month.]

      (f) Consent Expenses. Tenant shall pay, as Additional Rent hereunder, on
behalf of Landlord, or reimburse Landlord for, any and all reasonable
out-of-pocket costs or expenses paid or incurred by Landlord relating to any
request made by Tenant of Landlord, including, without limitation, reasonable
attorneys' fees, in connection with any of the following activities undertaken
by or on behalf of Landlord under this Lease: (i) the review, execution,
negotiation or delivery of any consent, waiver, estoppel, subordination
agreement or approval requested of Landlord by Tenant hereunder, including,
without limitation, any request for consent to Capital Additions or any
so-called "landlord's waiver"; (ii) the review by Landlord or its
representatives of any plans and specifications in connection with any
restoration of the Leased Property, any Capital Addition or otherwise; (iii)
the review by Landlord or its representatives of any request by Tenant for any
other approval or consent hereunder, or any waiver of any obligation of Tenant
hereunder; (iv) the negotiation by Landlord or its representatives of the
terms of instruments requested in connection with any Brookdale Requested
Refinancing; (v) any assistance provided by Landlord in connection with a
permitted contest pursuant to Paragraph 26; or (vi) any other request by
Tenant comparable to any of the foregoing.

      (g) Late Charge; Interest. If Tenant fails to make any payment of Rent
on or before the date such payment is due and payable and such amount remains
unpaid for a period of five (5) days, such past due payment shall bear
interest at the Overdue Rate.

      (h) Payment without Abatement. No abatement, diminution or reduction of
Rent shall be allowed to Tenant or any Person claiming under Tenant, under any
circumstances or for any reason whatsoever, except to the extent herein
provided.

6.    Holding Over. If Tenant or any other Person shall remain in possession of
the Leased Property or any part thereof following the expiration of the Term
or earlier termination of this Lease without an agreement in writing between
Landlord and Tenant with respect thereto, the Person remaining in possession
shall be deemed to be a tenant at sufferance, and during any such holdover,
the Rent payable under this Lease by such tenant at sufferance shall be one
hundred fifty percent (150%) of the Rent in effect immediately prior to the
expiration of the Term or earlier termination of this Lease. In no event,
however, shall such holding over be deemed or construed to be or constitute a
renewal or extension of this Lease.

                                      18
<PAGE>

7.    Use of Leased Property; Compliance With Legal Requirements and Other
Requirements.

      (a) Intended Use. Tenant shall have the right to use the Leased Property
as a senior housing facility, including, without limitation, as a senior
independent and/or assisted living facility and for such other uses as may be
related, incidental or necessary thereto (the "Intended Use") and for no other
purpose; provided, that in no event shall the Leased Property be used as a
skilled nursing facility. Tenant shall not perform any act or follow any
practice relating to the Leased Property which shall constitute a nuisance.
Subject to the terms and provisions of this Lease, Tenant shall have the right
to control the business being conducted at the Leased Property.

      (b) Legal Requirements, Insurance Requirements, Facility Mortgage
Requirements and Other Requirements. Tenant, at its sole expense, and subject
to the right of diligent contest as provided in Paragraph 25, shall (i) comply
with all applicable Legal Requirements, Insurance Requirements and Facility
Mortgage Requirements (provided that, with respect to any Facility Mortgage
other than the Existing Facility Mortgage, the terms of such Facility Mortgage
comply with the requirements of Paragraph 54(b)) in respect of the use,
operation, maintenance, repair, alteration and restoration of the Leased
Property, including, without limitation, all zoning classifications of any
lawful Government Agencies or other public or private regulatory authority
(including insurance underwriters or ratings bureaus) having jurisdiction over
the Leased Property, (ii) comply with all Other Requirements and (iii)
procure, maintain and comply with all Permits and Licenses for the proper
operation and maintenance of the Leased Property or any part thereof,
including, without limitation, any Capital Additions, except, in the case of
(i), (ii) or (iii) above, where failure to comply will not have a material
adverse effect on the use or operation of the Leased Property for the Intended
Use or the value of the Leased Property. Upon Tenant's written request,
Landlord shall cooperate with Tenant's reasonable requests and at Tenant's
sole cost and expense, to the extent Landlord's involvement is required for
Tenant to comply with this Paragraph 7(b).

      (c) Compliance with Third Party Payor Program Requirements. Tenant
shall, at its sole cost and expense, make (i) whatever improvements (capital
or ordinary) as are required to conform the Leased Property to such standards,
if any, as may, from time to time, be required by any applicable Third Party
Payor Programs to the extent Tenant is a participant in such Third Party Payor
Programs (it being acknowledged that participation in such Third Party Payor
Programs is at the sole and absolute discretion of Tenant), or any other
applicable programs or legislation, or (ii) capital improvements required by
any other Government Agency having jurisdiction over the Leased Property as a
condition of the continued operation of the Leased Property for its Intended
Use, except, in the case of (i) or (ii) above, where the failure to comply
will not have a material adverse effect on the use or operation of the Leased
Property for its Intended Use.

      (d) Landlord to Grant Easements, Etc. Landlord shall from time to time,
at the request of Tenant and at Tenant's sole cost and expense, (i) grant
easements and other rights in the nature of easements with respect to the
Leased Property to third parties; (ii) release existing easements or other
rights in the nature of easements which are for the benefit of the Leased
Property; (iii) dedicate or transfer unimproved portions of the Leased
Property for road, highway

                                      19
<PAGE>

or other public purposes; (iv) execute petitions to have the Leased Property
annexed to any municipal corporation or utility district; (v) execute
amendments to any covenants and restrictions affecting the Leased Property;
and (vi) execute and deliver to any Person any instrument appropriate to
confirm or effect such grants, release, dedications, transfer, petitions and
amendments (to the extent of its interests in the Leased Property); provided,
however, that Landlord shall have first reasonably determined in good faith
that such grant, release, dedication, transfer, petition or amendment is not
detrimental in any material respect to the operation of the Leased Property
for its Intended Use, does not materially reduce the value of the Leased
Property and, to the extent required by the Facility Mortgage, if any, is
acceptable to the Facility Mortgagee.

      (e) Landlord's Receipt Of Third Party Payor Program Reimbursements. If
Landlord is required by applicable law to receive any payments from Third
Party Payors as the owner of the Facility which would be deemed payment for
services provided by or on behalf of Tenant to residents of the Facility, the
parties hereto agree that, so long as there is no existing and continuing
Event of Default hereunder, Landlord shall pay such monies to Tenant as
promptly as practicable.

8.    Tenant's Covenant to Repair.

      (a) Repair and Maintenance. Except to the extent expressly permitted to
the contrary in Paragraph 17 or Paragraph 23, Tenant shall, at all times
during the Term and at Tenant's sole cost and expense, (i) put, keep, replace
and maintain the Leased Property (including, without limitation, the
Improvements and the Related Personal Property) in good repair and in good and
safe order and condition, ordinary wear and tear excepted (subject to Tenant's
obligations under clauses (ii) and (iii) below), (ii) make all repairs and
replacements thereto, both inside and outside, structural and non-structural,
ordinary and extraordinary, howsoever the necessity or desirability for
repairs and replacements may occur, and whether or not necessitated by wear,
tear, obsolescence or defects, latent or otherwise, (iii) use all reasonable
precautions to prevent waste, damage or injury, and (iv) install, maintain and
replace all landscaping, signs, sidewalks, roadways, driveways and parking
areas within the Leased Property in good repair and in good and safe order and
condition, ordinary wear and tear excepted (subject to Tenant's obligations
under clauses (ii) and (iii) above). Tenant's obligations under this Paragraph
8 shall constitute an expense of Tenant, shall not constitute Rent and shall
not offset or reduce any Rent otherwise required to be paid hereunder.

      (b) Related Personal Property. Tenant may (and shall as provided herein
below), at its expense, affix or assemble or place on any parcels of the Land
or in any of the Improvements, any Related Personal Property, and Tenant may,
subject to the conditions set forth below, remove the same at any time,
provided it is replaced with substantially equivalent personal property
sufficient to comply with the terms of this Paragraph 8(b). Tenant shall
provide and maintain throughout the Term all such Related Personal Property as
shall be necessary in order to operate the Facility for its Intended Use and
in material compliance with all applicable Legal Requirements and Insurance
Requirements. All of the Related Personal Property shall, upon the expiration
or earlier termination of this Lease at Landlord's option, exercised by
written notice to Tenant, be either removed by Tenant or left at the Facility,
in either case, at Tenant's sole cost and expense.

                                      20
<PAGE>

9.    No Landlord Repair Obligations. Landlord shall not be required to make
any structural or non-structural alterations, reconstructions, replacements,
changes, additions, improvements or repairs of any kind or nature whatsoever
to the Leased Property or any portion thereof (including, without limitation,
any portion of the Improvements or any Related Personal Property) at any time
during the Term.

10.   Surrender.

      (a) Surrender of Leased Property. Tenant shall on the last day of the
Term, or upon the sooner termination of this Lease, peaceably and quietly
surrender the Leased Property to Landlord, in good repair and in good and safe
order and condition and, further, in at least as good condition as when the
Leased Property was received, ordinary wear and tear and damage by fire,
Casualty or Condemnation excepted (but subject to Tenant's obligation to
restore the Leased Premises as provided in Paragraph 17 and Paragraph 23).

      (b) Transfer of Licenses and Permits. In addition, upon the expiration
or earlier termination of this Lease, Tenant shall, at Landlord's sole cost
and expense, (i) use commercially reasonable efforts to cooperate with
Landlord or Landlord's nominee in connection with the processing of all
applications for Permits and Licenses and (ii) to the extent the same are
assignable or otherwise transferable by law or pursuant to the terms thereof,
transfer to Landlord or Landlord's nominee the Permits and Licenses and the
contracts, including contracts with governmental or quasi-governmental
entities which may be necessary for the operation of the Facility for its
Intended Use. If requested by Landlord, Tenant will continue to manage the
Facility after the expiration of the Term and for so long thereafter as is
necessary (but in no event longer than 90 days) for Landlord or Landlord's
nominee to obtain all necessary Permits and Licenses on such reasonable terms
(which shall include an agreement to pay Tenant a market rate management fee
and reimburse Tenant for its reasonable out-of-pocket costs and expenses, and
reasonable administrative costs) upon which Landlord and Tenant shall agree.
To that end, pending completion of the transfer of the operational control of
the Facility to Landlord or its nominee:

            (i) Tenant will provide all information reasonably requested by
      Landlord or its nominee for the preparation and filing of any and all
      necessary applications or notifications of any federal or state
      governmental authority having jurisdiction over a change in the
      operational control of the Facility, and any other information
      reasonably required to effect an orderly transfer of the Facility, and
      Tenant will use reasonable efforts to cause all Permits and Licenses to
      be issued to Landlord or to Landlord's nominee; and

            (ii) Tenant shall use reasonable efforts to keep the business and
      organization of the Facility intact and to preserve for Landlord or its
      nominee the goodwill of the suppliers, distributors, residents and
      others having business relations with Tenant with respect to the
      Facility.

      (c) Apportionment of Impositions, Insurance Premiums and the Minimum
Capital Additions Amount. Upon the expiration of the Term, Landlord and Tenant
shall apportion and prorate Impositions, Insurance Premiums and the Minimum
Capital Additions Amount through

                                      21
<PAGE>

the Expiration Date, with Tenant being responsible for all Impositions,
Insurance Premiums and the Minimum Capital Additions Amount relating to the
period prior to the Expiration Date and Landlord being responsible for all
Impositions, Insurance Premiums and the Minimum Capital Additions Amount
relating to the period on and after such Expiration Date.

11.   Capital Additions.

      (a) Construction of Capital Additions. Tenant shall not construct or
install or make any Capital Addition on or to the Leased Property without
obtaining Landlord's prior written consent, which consent shall not be
unreasonably withheld, delayed or conditioned, provided that no consent shall
be required for any Capital Addition as long as (i) the Capital Additions
Costs for such Capital Addition are less than Two Hundred Fifty Thousand
Dollars ($250,000.00) per Capital Addition (including all related work), in
the aggregate and (ii) such construction or installation will not materially
and adversely affect or violate any Legal Requirement or Insurance Requirement
applicable to the Leased Property. Prior to commencing construction of any
Capital Addition, Tenant shall submit to Landlord, in writing, a proposal
setting forth, in reasonable detail, any proposed Capital Addition and shall
provide to Landlord such plans and specifications, permits, licenses,
contracts and other information concerning the proposed Capital Addition as
Landlord may reasonably request. Landlord shall have ten (10) Business Days to
review all materials submitted to Landlord in connection with any such
proposal. Failure of Landlord to respond to Tenant's proposal within ten (10)
Business Days after receipt of all information and materials reasonably
requested by Landlord in connection with the proposed Capital Addition shall
be deemed to constitute approval of such proposed Capital Addition, subject in
all events, however, to Tenant's compliance with the other requirements of
this Paragraph 11. Without limiting the generality of the foregoing, such
proposal shall indicate the approximate projected cost of constructing such
Capital Addition and the use or uses to which it will be put. No Capital
Addition shall be made which would tie in or connect any Improvement on the
Leased Property with any other improvements on property adjacent to the Leased
Property (and not part of the Land), including, without limitation, tie-ins of
buildings or other structures or utilities (other than a utility facility
belonging to the provider of such utility service), without Landlord's
consent, which shall be given or withheld in Landlord's discretion. Any
Capital Additions shall, upon the expiration or sooner termination of the
Term, pass to and become the property of Landlord, free and clear of all
encumbrances other than Permitted Encumbrances.

      (b) Non-Capital Additions. Tenant shall have the right, at Tenant's sole
cost and expense, without Landlord consent, to make additions, modifications
or improvements to the Leased Property which are not Capital Additions
("Non-Capital Additions") from time to time as Tenant, in its sole discretion,
may deem desirable for the applicable Intended Use provided that any such
Non-Capital Addition will not materially alter the character or purpose or
materially detract from the value of the Leased Property.

      (c) Capital Additions Financed by Landlord. Upon the request of Tenant,
Landlord may elect to make available funds and pay for a Capital Addition, if
Landlord, Tenant and BLC Holdings mutually agree in writing that the cost of
such Capital Addition proposed by Tenant will be added to the Lease Basis
(each, a "Landlord Capital Addition"). If Landlord agrees to fund the costs of
a Landlord Capital Addition, Tenant shall provide such information as Landlord
may from time to time request, including, without limitation, the following:

                                      22
<PAGE>

            (i) Reasonable evidence that such Landlord Capital Addition will
      be, and upon completion, has been, completed in compliance with all
      applicable Legal Requirements, Other Requirements and Facility Mortgage
      Requirements;

            (ii) Copies of any required building, zoning and land use permits
      and approvals and, upon completion of such Landlord Capital Addition, a
      copy of the certificate of occupancy for such Landlord Capital Addition,
      if required;

            (iii) Such information, certificates, licenses, permits or other
      documents necessary to confirm that Tenant will be able to use the
      Landlord Capital Addition upon completion thereof in accordance with the
      Facility's Intended Use, including all Legal Requirements and all Other
      Requirements;

            (iv) An Officer's Certificate and a certificate from Tenant's
      architect, if available, setting forth, in reasonable detail, the
      projected (or actual, if available) Capital Additions Cost and invoices
      and lien waivers from Tenant's contractors for such work;

            (v) A deed conveying to Landlord title to any land acquired for
      the purpose of constructing the Landlord Capital Addition free and clear
      of any liens or encumbrances, except those approved by Landlord, and,
      upon completion of the Landlord Capital Addition, a final as-built
      survey thereof reasonably satisfactory to Landlord;

            (vi) Endorsements to any outstanding policy of title insurance
      covering the Facility or commitments therefor, reasonably satisfactory
      in form and substance to Landlord, (A) adding any land acquired for
      purposes of constructing the Landlord Capital Addition, (B) updating the
      same without any additional exceptions except as reasonably approved by
      Landlord, and (C) increasing the coverage thereof by an amount equal to
      the Capital Additions Cost relating to such Landlord Capital Addition;
      and

            (vii) Copies of plans and specifications relating to such Landlord
      Capital Addition and other instruments reasonably required by Landlord.

      (d) Disbursement of Capital Addition Allowances. Provided that no Event
of Default hereunder or under the Agreement Regarding Leases has occurred and
is continuing, and subject to Tenant's satisfaction of the conditions set
forth in this Paragraph 11(d) and, with respect to any Mandatory Capital
Addition only, the conditions set forth in Paragraph 5(a) of the Agreement
Regarding Leases, Tenant shall have the right upon ten (10) days' prior
written notice to Landlord to request from Landlord a disbursement of funds in
connection with a Landlord Capital Addition or a Mandatory Capital Addition
(each, a "Capital Addition Allowance"). Requests for disbursements under this
Paragraph 11(d) shall not be made more often than once during any calendar
month and shall be made in increments of not less than Twenty Five Thousand
and No/100 Dollars ($25,000.00) and in an aggregate amount not to exceed the
approved Capital Additions Cost for such Landlord Capital Addition.

            (i) Landlord shall, upon written request from Tenant and
      satisfaction of the requirements set forth in this Paragraph 11(d),
      disburse a Capital Addition Allowance to Tenant necessary to pay for the
      actual approved costs of Landlord Capital Additions (or,

                                      23
<PAGE>

      upon partial completion of such Landlord Capital Additions pursuant to
      Paragraph 11(d)(vi)).

            (ii) Each request for a Capital Addition Allowance shall be in a
      form reasonably specified or approved by Landlord and shall set forth
      (a) the specific Landlord Capital Addition for which the Capital
      Addition Allowance is requested, (b) if the Landlord Capital Addition
      includes the purchase or replacement of specific items, the quantity and
      price of each item purchased, (c) the price of all materials (grouped by
      type or category) used in connection with the Landlord Capital Addition
      to be paid for with the Capital Addition Allowance, other than the
      purchase or replacement of specific items, and (d) the cost of all
      contracted labor or other services applicable to each Landlord Capital
      Addition for which such request for disbursement is made.

            (iii) With each request, Tenant shall certify that all Landlord
      Capital Additions to be paid for with the Capital Addition Allowance
      will be made in a good and workmanlike manner and in accordance with all
      applicable Legal Requirements of any Government Agency having
      jurisdiction over the Facility.

            (iv) To the extent required by Landlord, each request for a
      Capital Addition Allowance shall include copies of invoices for all
      items or materials purchased and all contracted labor or services
      provided or to be provided as a condition to any requested disbursement,
      and shall include a waiver of lien (or conditional waiver of lien
      conditioned only upon payment of all or a portion of the requested
      Capital Addition Allowance) from each Person receiving payment prior to
      Landlord's disbursement, and from each contractor, supplier,
      materialman, mechanic or subcontractor or other Person who receives
      payment in an amount equal to or greater than $25,000.00 for completion
      of its work or delivery of its materials.

            (v) Any lien waiver delivered hereunder shall conform to Legal
      Requirements and shall cover all work performed and materials supplied
      (including equipment and fixtures) for the Facility by that contractor,
      supplier, subcontractor, mechanic or materialman or other Person up to
      the date covered by the current disbursement request.

            (vi) Each request for Capital Addition Allowance shall be made
      only after completion of the portion of the work with respect to the
      Landlord Capital Addition for which Capital Addition Allowance is
      requested. Tenant shall provide Landlord with such evidence of
      completion of the portion of the Landlord Capital Addition with respect
      to which the Capital Addition Allowance is requested, which shall be
      satisfactory to Landlord in its reasonable judgment.

            (vii) Upon receipt of the requested Capital Addition Allowance,
      Tenant shall pay all invoices in connection with the Landlord Capital
      Addition relating to the applicable Capital Addition Allowance.

      (e) Capital Addition Allowances Added to Lease Basis. All Capital
Addition Allowances made by Landlord shall be added to the Lease Basis on a
dollar-for-dollar basis, and the Base Rent shall be adjusted accordingly.

                                      24
<PAGE>

12.   Utilities and Other Services. Tenant shall be liable for and shall pay
directly all charges, fees and amounts (together with any applicable
penalties, late charges, taxes or assessments thereon) when due for water,
gas, electricity, air conditioning, heat, septic, sewer, refuse collection,
telephone and any other utility charges or similar items in connection with
the use or occupancy of the Leased Property. Landlord shall not be responsible
or liable in any way whatsoever for the quality, quantity, impairment,
interruption, stoppage, or other interference with any utility service,
including, without limitation, water, air conditioning, heat, gas, electric
current for light and power, telephone, or any other utility service provided
to or serving the Leased Property or any damage or injury caused thereby. No
such interruption, termination or cessation of utility services shall relieve
Tenant of its duties and obligations pursuant to this Lease, including,
without limitation, its obligation to pay all Rent as and when the same shall
be due hereunder.

13.   Performance by Landlord of Tenant's Obligations.

      (a) Landlord's Self Help. If an Event of Default shall have occurred and
is continuing, Landlord may (but shall be under no obligation to), after
Notice to Tenant (or without Notice or time to perform if, in Landlord's
reasonable opinion, an emergency exists or action is necessary to cure any
default under any applicable Facility Mortgage prior to the expiration of the
applicable cure period therefor), perform the same for the account and at the
expense of Tenant. If, at any time and by reason of such Event of Default,
Landlord is compelled to pay, or reasonably elects to pay, any sum of money or
do any reasonable act which will require the payment of any sum of money, or
is compelled to incur any expense in the enforcement of its rights hereunder
or otherwise, such sum or sums, together with interest thereon at the Overdue
Rate, shall be deemed Additional Rent hereunder and shall be paid to Landlord
by Tenant promptly when billed therefor, and Landlord shall have all the same
rights and remedies in respect thereof as Landlord has in respect of the Rent
herein reserved.

      (b) Landlord's Inspections. Landlord, its agents or representatives,
including any applicable Facility Mortgagee, shall have the right, but not the
obligation, to enter upon the Leased Property to perform inspections
(including, but not limited to, sampling) of the Leased Property to confirm
that Tenant is performing all of Tenant's obligations under this Lease, that
Tenant has not violated any of its covenants under this Lease and that the
Leased Property is in compliance with the terms of the Facility Mortgage. Upon
completion of such inspection, Landlord may deliver to Tenant a written report
("Inspection Report") outlining certain defaults, if any, in Tenant's
obligations under Paragraph 7(b), Paragraph 7(c) or Paragraph 8(a). Within ten
(10) Business Days after Tenant's receipt of such Inspection Report, Tenant
shall either (i) object to Landlord in writing as to any portion of the
Inspection Report, specifically describing such objection; or (ii) commence
any and all required work outlined in the Inspection Report which Tenant has
not objected to, and diligently complete such work. If Tenant objects to any
item in the Inspection Report, then within ten (10) Business Days of
Landlord's receipt of Tenant's objection notice, both Landlord and Tenant
shall select a third party licensed engineer mutually satisfactory to Landlord
and Tenant or if a single engineer cannot be agreed upon, then Landlord and
Tenant shall each, at their own cost, select a licensed engineer and the two
chosen engineers shall select a third licensed engineer, the cost of the third
engineer being paid equally by Landlord and Tenant. The engineer(s) shall
determine, by majority vote, whether the work outlined in the Inspection
Report is necessary to put the Leased Property in good condition and

                                      25
<PAGE>

repair, ordinary wear and tear excepted (but subject to Tenant's covenants
under clauses (ii) and (iii) of Paragraph 8(a) and otherwise in compliance
with this Lease). Such determination shall be final and binding on Landlord
and Tenant. Notwithstanding anything to the contrary contained in this
Paragraph 13(b), all inspections shall occur at reasonable times during normal
business hours and shall be conducted in a manner aimed to minimize the
disturbance or interference with (x) Tenant's and Manager's use and operation
of the Facility and (y) the residents' and occupants' use of the Facility, and
the scope of such inspections shall be limited by (A) any security, health,
safety or confidentiality requirements of any Governmental Agency or imposed
by applicable law or regulations and (B) Tenant's ordinary business practices
and standard resident agreements, if any, requiring Tenant to maintain the
confidential nature of certain personal information relating to individual
residents living in the Facility.

14.   Entry. Landlord, any Facility Mortgagee and their agents or
representatives may enter the Leased Property at reasonable times during
normal business hours upon twenty-four (24) hours prior written Notice (except
during emergencies, in which case Landlord shall give reasonable notice under
the circumstances) for the purpose of performing any work which Landlord
elects pursuant to Paragraph 13(a) to undertake by reason of an Event of
Default. Landlord shall use reasonable efforts not to disturb Tenant or any
resident or occupant of the Leased Property and not to unreasonably interfere
with the use and operations of the Facility as a result of any such entry by
Landlord, its agents or representatives. Landlord's right to entry with
respect to the Leased Property shall be limited by (A) any security, health,
safety or confidentiality requirements of any Governmental Agency or imposed
by applicable law or regulations and (B) Tenant's ordinary contractual
business practices, if any, requiring Tenant to maintain the confidential
nature of certain personal information relating to individual residents living
in the Facility.

15.   Assignment, Subletting and Liens.

      (a) Transfers Prohibited Without Consent. Except as provided below,
Tenant shall not, without the prior written consent of Landlord, which consent
may be withheld in Landlord's sole and absolute discretion, in each instance,
sell, assign or otherwise transfer Tenant's interest under this Lease, or
Tenant's interest in the Leased Property, in whole or in part, or any rights
or interest which Tenant may have under this Lease, or sublet the Leased
Property or any part thereof. If given, the consent of Landlord to an
assignment, transfer or subletting shall in no event be construed to relieve
Tenant or such assignee or subtenant from the obligation of obtaining the
express consent in writing of Landlord to any further assignment, transfer or
subletting. For purposes of this Paragraph 15(a), a Change of Control which is
not otherwise expressly permitted in accordance with the terms of Paragraph 6
of the Agreement Regarding Leases shall be deemed to constitute a prohibited
assignment of this Lease. Any assignment, transfer or sublease in violation of
this Paragraph 15 shall be voidable at Landlord's option. For purposes of this
Paragraph, Landlord's consent shall conclusively be deemed reasonably withheld
if the proposed transfer would, in Landlord's judgment, violate the terms of
the Facility Mortgage, and Tenant has not obtained the written consent (in
form satisfactory to Landlord) of the Facility Mortgagee to such transfer.
Notwithstanding the foregoing, except as provided in Paragraph 6 of the
Agreement Regarding Leases, Landlord's consent shall not be required in
connection with (x) any Permitted Transfer, (y) any Equity Transfer or (z) any
Affiliate Transfer.

                                      26
<PAGE>

      (b) Adequate Assurances. Without limiting any of the foregoing
provisions of this Paragraph 15, if, pursuant to the U.S. Bankruptcy Code, as
the same may be amended from time to time, Tenant is permitted to assign or
otherwise transfer its rights and obligations under this Lease in disregard of
the restrictions contained in this Paragraph 15, the assignee agrees to
provide adequate assurance to Landlord (i) of the continued use of the Leased
Property solely in accordance with the Intended Use thereof and in compliance
with all other terms of this Lease; and (ii) of such other matters as Landlord
may reasonably require at the time of such assumption or assignment. Such
assignee shall expressly assume this Lease by an agreement in recordable form.

      (c) Permitted Subleases. Notwithstanding the foregoing, Tenant may enter
into third party residency agreements with respect to the units located at the
Facility and may sublet space at the Leased Property for use as a bank, beauty
salon, barber shop, laundry, commissary or healthcare purposes or other
concessions and services in the ordinary course of business consistent with
and ancillary to the Intended Use, so long as (i) any such sublease will not
(x) reduce the number of units at the Facility or (y) violate or affect any
Legal Requirement or Insurance Requirement, (ii) Tenant shall maintain (or
cause to be maintained) such additional insurance coverage with respect to the
activities to be conducted in such subleased space as Landlord may reasonably
require so long as such additional insurance coverage is customarily
maintained for comparable activities and uses at comparable properties and
(iii) any proposed subleases with terms longer than twelve (12) months shall
be subject to Landlord's approval, which shall not be unreasonably withheld,
conditioned or delayed.

      (d) Intentionally Omitted.

      (e) Liens. Subject to the provisions of Paragraph 26, Tenant shall not,
directly or indirectly, create or allow to remain and shall promptly discharge
or bond over in a manner reasonably satisfactory to Landlord, at its expense,
any Lien encumbering the Leased Property or Tenant's leasehold interest
therein or any attachment, levy, claim or encumbrance in respect of the Rent,
other than (i) Permitted Encumbrances; (ii) restrictions, liens and other
encumbrances which are consented to in writing by Landlord or otherwise
permitted under this Lease; (iii) Liens for those taxes of Landlord which
Tenant is not required to pay hereunder; (iv) Liens for Impositions or for
sums resulting from purported noncompliance with Legal Requirements so long as
(A) the same are not yet payable, or (B) are being contested in accordance
with Paragraph 26; (v) liens of mechanics, laborers, materialmen, suppliers or
vendors incurred in the ordinary course of business that are not yet due and
payable or are for sums that are being contested in accordance with Paragraph
26; and (vi) any Facility Mortgage or other liens which are the responsibility
of Landlord pursuant to the provisions of Paragraph 35.

16.   Impositions. Throughout the Term, Tenant shall bear, pay and discharge
all Impositions which become due and payable during, arise during, accrue
during or otherwise relate to the period comprising (a) the Term or (b) any
period prior to the commencement of the Term. Upon request of Landlord, Tenant
shall promptly furnish to Landlord satisfactory evidence of the payment of any
Imposition required to be paid by Tenant pursuant to the foregoing. If any
refund shall be due from any taxing authority or otherwise in respect of any
Imposition paid by Tenant, the same shall be paid to or retained by Tenant.
If, pursuant to the terms of any Facility Mortgage, Landlord is required to
establish and fund payments of Impositions to an escrow

                                      27
<PAGE>

reserve account established under the loan documents relating to such Facility
Mortgage, then Tenant shall fund all such payments to the reserve account, and
such payments shall constitute Additional Rent hereunder. Upon the expiration
of the Term, Landlord and Tenant shall apportion and prorate Impositions to
the Expiration Date, with Tenant being responsible for all Impositions
relating to the period prior to the Expiration Date and Landlord being
responsible for all Impositions relating to the period on and after the
Expiration Date, as more particularly described in Paragraph 10.

17.   Casualty.

      (a) Restoration and Repair. If the Improvements and/or any Related
Personal Property shall be destroyed or damaged in whole or in part by fire or
any cause whatsoever ("Casualty"), Tenant shall give Landlord prompt written
notice thereof and shall repair, reconstruct or replace the Improvements
and/or the Related Personal Property, or the portion thereof so destroyed or
damaged (whichever is reasonably required), at least, to the extent
practicable, to a condition substantially equivalent in value and character as
existed immediately prior to such Casualty, and in accordance with all Legal
Requirements, all Other Requirements, all Insurance Requirements and all
Facility Mortgage Requirements. All work shall be started as soon as
practicable and completed at Tenant's sole cost and expense. Tenant shall,
however, immediately take such action as is necessary to secure the Leased
Property (or any portion thereof) such that the same does not constitute a
nuisance or otherwise present a health or safety hazard. Notwithstanding the
occurrence of any such Casualty, Tenant shall continue to pay all Rent without
abatement.

      (b) Unavailability of Proceeds. Upon the occurrence of a Casualty in
which the applicable Facility Mortgagee (i) applies all or any portion of the
applicable insurance proceeds to repay the Facility Mortgage and therefore any
portion of the proceeds are not available for restoration or (ii) otherwise
refuses in writing to make any portion of such proceeds available to be used
for restoration within a commercially reasonable period of time in light of
the nature of the Casualty event, then, unless Landlord, in Landlord's sole
and absolute discretion, agrees to make available to Tenant funds in an amount
equal to the amount of proceeds so applied by the Facility Mortgagee, Tenant
may elect by written notice to Landlord either (x) to terminate this Lease and
purchase the Leased Property from Landlord on the terms set forth below
("Termination/Purchase Election") or (y) to use Tenant's own funds to restore
the Leased Property to its condition prior to the Casualty event (the
"Restoration Election"). Landlord shall notify Tenant in writing as to whether
Landlord intends to make such funds available and shall deliver such notice to
Tenant not later than ten (10) Business Days after receiving written notice
from the Facility Mortgagee that such Facility Mortgagee has applied or
intends to apply (or has made a final determination not to disburse) the
insurance proceeds. Tenant shall make the Termination/Purchase Election or the
Restoration Election by Notice given during the fifteen (15) Business Day
period after Tenant's receipt of such notice from Landlord (time being of the
essence with respect to the giving of such notice by Tenant). The effective
date of the transactions contemplated by the Termination/Purchase Election
shall be no later than ten (10) Business Days after the distribution or
payment of the insurance proceeds, time being of the essence. Until the
effective date of such transactions, Tenant shall continue to be obligated to
pay Rent hereunder as if such Casualty did not occur. At the closing of the
transactions contemplated by the Termination/Purchase Election, (A) Landlord
shall cause PSLT-BLC

                                      28
<PAGE>

Holdings to execute and deliver the documents contemplated in Paragraph 14(b)
of the Agreement Regarding Leases and to otherwise comply with the terms and
conditions of such Paragraph to the extent applicable to the conveyance to
Tenant of the Leased Property, and (B) Tenant shall immediately (1) assign
Tenant's rights in and to all insurance proceeds for such damage or
destruction to Landlord and any applicable Facility Mortgagee, and (2) pay to
Landlord an amount equal to the positive difference, if any, between the (a)
Minimum Option Purchase Price (determined on an individual basis for the
applicable Leased Property using the methodology set forth in the definition
of Minimum Option Purchase Price in the Agreement Regarding Leases) minus (b)
the amount of the Casualty insurance proceeds actually paid by the applicable
insurance company (or insurance companies). In addition, to the extent that
Landlord or any of its Affiliates would recognize a gain for federal income
tax purposes on the sale of the Leased Property contemplated in this
Paragraph, then at the closing of such sale Tenant shall also pay to Landlord
the amount by which such recognized gain exceeds the sum of the following: (i)
the cash proceeds from the sale of the Leased Property, plus (ii) any net
operating losses for federal income tax purposes carried over from Brookdale
Living Communities, Inc. with respect to taxable years ending on or prior to
the Commencement Date which remain unused as of the effective date of the
sale, plus (iii) any net increase in the aggregate amount of Facility
Mortgages subsequent to the Commencement Date encumbering the Leased Property,
except to the extent that the proceeds of such increased borrowings are
disbursed to Tenant or any of Tenant's Affiliates pursuant to Paragraph 12(c)
of the Agreement Regarding Leases, minus (iv) any net reduction, subsequent to
the Commencement Date in the aggregate amount of Facility Mortgages
encumbering the Property; provided, however, that in no event will the amount
payable under this sentence or under the corresponding sentence within
Paragraph 17(b) of any of the other Property Leases (as defined in the
Agreement Regarding Leases) in the aggregate, together with all payments
theretofore made or thereafter made under Paragraph 14(a) of the Agreement
Regarding Leases, exceed $75,000,000. If Tenant makes the Restoration
Election, then the amount that Tenant expends in such repair and restoration
(in an amount not to exceed the amount of insurance proceeds applied by the
Facility Mortgagee) shall be deducted from the Lease Basis upon the completion
of such work.

      (c) Termination of Lease by Tenant. Notwithstanding anything to the
contrary contained in this Paragraph 17, if a Casualty occurs during the last
two (2) years of the Initial Term or any Renewal Term and such Casualty
renders the Leased Property Unsuitable for its Intended Use, Tenant may elect,
by written notice to Landlord given not later than thirty (30) days after the
occurrence of such Casualty, to terminate this Lease, regardless of the amount
of insurance proceeds and regardless of whether or not such insurance proceeds
will be made available for the reconstruction of the Facility. Such
termination option shall be effective not later than ten (10) Business Days
after the distribution or payment of the insurance proceeds. Until the
effective date of such transactions, Tenant shall continue to be obligated to
pay Rent hereunder as if such Casualty did not occur. On the effective date of
such termination of this Lease (and as a condition to the effectiveness of the
termination of this Lease), (i) Tenant shall assign to Landlord all of
Tenant's right, title and interest in and to any insurance proceeds in
connection with such Casualty, and (ii) Tenant shall pay to Landlord, in
immediately available federal funds, the sum of (x) the deductible amounts
under any applicable

                                      29
<PAGE>

insurance policies, and (y) a "make-whole" payment in an amount equal to the
difference between (A) the sum of (1) the Lease Basis and (2) the present
value of the Rent through the Expiration Date (discounted at 8.1% per annum),
minus the sum of (a) insurance proceeds actually paid by the applicable
insurance company (or insurance companies) and (b) the fair market value of
the Land (as agreed in writing by Landlord and Tenant, or if Landlord and
Tenant cannot agree upon such amount within five (5) Business Days, as
determined in accordance with the appraisal procedure set forth in Paragraph
54). For the purposes of calculating the present value under clause (A)(2)
above, the amount of the "Impositions" that will be included in the definition
of "Additional Rent" shall be subject to the reasonable approval of Landlord
and Tenant.

      (d) Escrow of Insurance Proceeds. Subject to the requirements of any
Facility Mortgagee, in the event of a Casualty resulting in an insurance loss
payment for any Improvements and/or Related Personal Property in an amount
greater than Two Hundred Fifty Thousand Dollars ($250,000.00), unless this
Lease is terminated as provided in Paragraph 17(b), the proceeds of all
insurance policies maintained by Tenant plus the amount of any deductible (to
be deposited by Tenant) shall, subject to all Legal Requirements and to the
terms of any Facility Mortgage, be deposited in the name of Landlord, Tenant
and any Facility Mortgagee in an escrow account at an approved financial
institution designated by Landlord or the Facility Mortgagee (which depositary
may be the Facility Mortgagee) (the "Escrow Agent"), and shall be used by
Tenant for the repair, reconstruction or restoration of the Improvements
and/or Related Personal Property. Such proceeds shall be disbursed
periodically by the Escrow Agent upon certification of the architect or
engineer having supervision of the work that such amounts are the amounts paid
or payable for the repair, reconstruction or restoration. Tenant shall, at the
time of establishment of such escrow account and from time to time thereafter
until said work shall have been completed and paid for, furnish Landlord with
adequate evidence that at all times the undisbursed portion of the escrowed
funds, together with any funds made available by Tenant, is sufficient to pay
for the repair, reconstruction or restoration in its entirety. Subject to the
requirements of a Facility Mortgage, if a Casualty results in a loss payment
for the Improvements and/or Related Personal Property in an amount equal to or
less than Two Hundred Fifty Thousand Dollars ($250,000.00), unless this Lease
is terminated as provided in Paragraph 17(b), then the proceeds shall be paid
to Tenant, and shall be applied by Tenant toward the repair, reconstruction
and restoration of the Leased Property. Tenant shall obtain, and make
available to Landlord, receipted bills and, upon completion of the work, full
and final waivers of lien.

      (e) Uninsured Losses. Nothing contained herein shall relieve Tenant of
its obligations under this Paragraph 17 even if the Casualty is not covered,
either in whole or in part, by insurance.

18.   Insurance.

      (a) Insurance By Tenant. Tenant shall, throughout the Term, and at its
sole cost and expense, maintain in full force and effect the types and amounts
of insurance required under the Facility Mortgage or, if there is no Facility
Mortgage or the Facility Mortgagee does not require the maintenance of
insurance, the following types and amounts of insurance coverage; provided
such insurance coverage is commercially available at commercially reasonable
rates:

            (i) Hazard Insurance. Tenant shall keep the Improvements and the
      Related Personal Property, including all permitted alterations, changes,
      additions and replacements thereof and thereto, insured against loss or
      damage caused by: (A) fire, and other hazards and perils generally
      included under extended coverage; (B) sprinkler

                                      30
<PAGE>

      leakage; (C) vandalism and malicious mischief; (D) boiler and machinery;
      and (E) other perils commonly covered by "All Risk" insurance, all in an
      amount which reasonably assures there will be sufficient proceeds to
      replace the Improvements and the Related Personal Property in the event
      of a loss against which such insurance is issued but in no event less
      than 100% of the full replacement value thereof (exclusive of
      foundations). Such insurance shall contain (x) "Ordinance or Law
      Coverage" (if any of the Improvements or the use of the Leased Property
      shall at any time constitute legal non-conforming structures or uses
      which non-conformance shall be presumed unless and until Tenant proves
      to Landlord's reasonable satisfaction, that such uses are conforming),
      "Operation of Building Laws," or "Enforcement" endorsement, (y)
      "demolition" insurance (in an amount of at least $5,000,000) and (z)
      "increased cost of construction" endorsement (equal to at least
      $5,000,000). All insurance required hereunder, and all other insurance
      maintained by Tenant on the Improvements and the Related Personal
      Property in excess of or in addition to that required hereunder, shall
      be carried in favor of Landlord, any Facility Mortgagee and Tenant, as
      their respective interests may appear.

            (ii) Liability Insurance. Tenant shall provide and keep in full
      force and effect a policy of general liability and property damage
      insurance providing coverage against liability for personal injury,
      death and property damage having limits of not less than Fifteen Million
      Dollars ($15,000,000) per claim, and Fifteen Million Dollars
      ($15,000,000) in the aggregate, for the Leased Property, some or all of
      which may be satisfied by an excess liability policy. Such insurance
      shall (A) continue at not less than the aforesaid limits until required
      to be changed by Landlord by reason of changed economic conditions
      making such protection inadequate in Landlord's discretion, but only to
      the extent such increased limits are customarily carried and maintained
      by companies engaged in businesses similar to Tenant's and operating
      properties similar to the Leased Property, and (B) cover at least the
      following: (1) premises and operations; (2) products and completed
      operations on an "if any" basis; (3) independent contractors; (4)
      blanket contractual liability for all insured contracts; (5) contractual
      liability covering indemnities, if any, given by Tenant contained in the
      Facility Mortgage, if any, applicable to the Leased Property, to the
      extent the same is available; (6) broad form property damage; (7)
      personal injury (including death resulting therefrom); and (8)
      healthcare professional liability.

            (iii) Business Interruption. Tenant shall provide and keep in
      effect a policy of business interruption insurance in an amount to cover
      costs, damages, lost income, expenses, Base Rent, and all other sums
      payable under this Lease for a period of not less than eighteen (18)
      months from the date of casualty or loss. Such insurance shall (A) cover
      all risks required to be covered by the insurance provided for in clause
      (i) above and clause (vii) below; (B) be in an amount sufficient to
      avoid any co-insurance penalty; (C) contain an extended period of
      indemnity endorsement that provides that after the physical loss to the
      Leased Property has been repaired, the continued loss of income will be
      insured until such income returns to the same level it was prior to the
      loss, or the expiration six (6) from the date of the repair, whichever
      first occurs, and notwithstanding that the policy may expire prior to
      the end of such period.

                                      31
<PAGE>

            (iv) Worker's Compensation and Employer's Liability Insurance.
      Tenant shall provide and keep in full force and effect workers'
      compensation insurance, in a form prescribed by the laws of the Facility
      State, and employers' liability insurance with limits of not less than
      Fifteen Million Dollars ($15,000,000), some or all of which may be
      satisfied by an excess liability policy.

            (v) Builder's Risk Insurance. Tenant shall, prior to the
      commencement of and during the construction of any restoration,
      renovation or alteration to the Leased Property, provide and keep in
      full force and effect builder's risk insurance equal to the total cost
      of the project.

            (vi) Flood Insurance. If any Improvements are or become located in
      an area which is considered a flood risk by the U.S. Department of
      Housing and Urban Development, Tenant shall provide and keep in effect a
      policy of flood insurance with the maximum limit of coverage available
      for the Improvements under the National Flood Insurance Act of 1968, the
      Flood Disaster Protection Act of 1973 or the National Flood Insurance
      Reform Act of 1994.

            (vii) Boiler and Machinery Insurance. Tenant shall provide and
      keep in effect a policy of broad form boiler and machinery insurance
      (without exclusion for explosion) covering all boilers or other pressure
      vessels, machinery, and equipment located in, on or about any Leased
      Property (including "system breakdown coverage") in an amount equal to
      or greater than the repair and full replacement cost of such equipment
      and insurance against loss of occupancy or use arising from any
      breakdown of such equipment on a so-called "accident basis" and in such
      amounts as are generally required by institutional lenders for
      properties comparable to the Leased Property.

            (viii) Motor Vehicle Insurance. Tenant shall provide and keep in
      effect motor vehicle liability coverage for all owned and non-owned
      vehicles, including rented and leased vehicles, used in connection with
      the operation of the Leased Property, containing minimum limits per
      occurrence of Five Million and No/100 Dollars ($5,000,000.00), some or
      all of which may be satisfied by an excess liability policy.

            (ix) "Dram-Shop" Insurance. If alcoholic beverages are sold at the
      Leased Property, Tenant shall provide and keep in effect a policy of
      so-called "dramshop" insurance or other liability insurance required in
      connection with the sale of alcoholic beverages containing minimum
      limits of One Million No/100 Dollars ($1,000,000.00) per occurrence.

            (x) Fidelity Insurance. Tenant shall provide and keep in effect a
      policy of insurance against employee dishonesty in an amount not less
      than One Million and No/100 Dollars ($1,000,000.00) and with a
      deductible not greater than Fifty Thousand and No/100 Dollars
      ($50,000.00).

            (xi) Healthcare Professional Liability Insurance. Tenant shall
      provide and keep in effect a policy of insurance covering claims arising
      out of healthcare professional liability in an amount as stated in
      clause (ii) of this Paragraph 18, and, if written on a

                                      32
<PAGE>

      "claims-made" basis, Tenant shall also provide continuous liability
      coverage for claims arising during the Term either by obtaining an
      endorsement providing for an extended reporting period reasonably
      acceptable to Landlord if such policy is cancelled or not renewed for
      any reason whatsoever, or by obtaining "tail" insurance coverage
      providing coverage for a period of at least twelve (12) months beyond
      the expiration of the Term.

            (xii) Earthquake Insurance. If the Leased Property is in a high
      probability earthquake area (i.e., Zone 1 and 2), and a probable maximum
      loss ("PML") study reveals that the PML is greater than 10% of the
      replacement cost (as reasonably determined by Landlord), then earthquake
      insurance must be maintained in an amount equal to the PML percentage of
      the replacement cost with a deductible not to exceed 5% of the values at
      risk. The insurance pursuant to this clause (xii) shall be on terms
      consistent with the comprehensive all risk insurance policy required
      under clause (i) above.

            (xiii) Terrorism Insurance. If the insurance required under
      Paragraph 18(a)(i) above excludes coverage for acts of terrorism, Tenant
      shall provide terrorism insurance coverage in an amount equal to the
      full replacement cost of the Leased Property unless such terrorism
      insurance coverage is (i) waived by Landlord, (ii) unable to be procured
      from any carrier of such insurance, or (iii) not available at
      commercially reasonable rates and not being carried by owners or
      operators of similarly situated properties.

            (xiv) Other Insurance. Tenant shall, at Landlord's request,
      provide and keep in full force and effect such other insurance for such
      risks and in such amounts as may from time to time be required pursuant
      to any Facility Mortgage or by any Legal Requirements or as Landlord
      may, from time to time, reasonably request against such other insurable
      hazards or casualties that at the time are commonly insured against in
      the case of business operations similar to those contemplated by this
      Lease or for properties similar to the Leased Property located in or
      around the region in which the Leased Property is located including,
      without limitation, wind, sinkhole, mine subsidence and environmental
      insurance, due regard being given to the height and type of the Leased
      Property, construction, location, use and occupancy. In addition, with
      respect to the insurance policies required under clauses (iv), (viii),
      (ix), (x) and (xi) of this Paragraph 18, Landlord shall have the right
      on Notice to Tenant to change the limits of said policies by reason of
      changed economic conditions making such protection inadequate in
      Landlord's discretion, but only to the extent that such revised
      increased limits are customarily carried and maintained by companies
      engaged in businesses similar to Tenant's and operating properties
      similar to the Leased Property.

      (b) Landlord as Additional Insured and/or Loss Payee. Any and all
insurance maintained by Tenant as required by this Lease, or in excess of or
in addition to that required hereunder, shall name Landlord and any Facility
Mortgagee as additional insureds, as their interests may appear, and shall
contain waiver of subrogation endorsements as is commonly made available from
its insurance carrier. Landlord and any Facility Mortgagee shall be named as
the loss payee on all property policies.

                                      33
<PAGE>

      (c) Carriers and Features. All insurance policies (except those required
under clause (a)(ii) and clause (a)(xi) of Paragraph 18(a)) required to be
carried by Tenant as provided in this Paragraph 18 shall be issued by
insurance companies authorized and/or licensed to do business in the Facility
State with a Best's Insurance Rating of not less than "A-" or a Best's
Financial Category of not less than "VIII," with reasonable deductibles per
occurrence. All such policies shall be for periods of not less than one year
and Tenant shall renew the same at least thirty (30) days prior to the
expiration thereof or later as approved in writing by Landlord. All such
policies shall require not less than thirty (30) days written notice to
Landlord prior to any cancellation thereof or any change reducing coverage
thereunder. Notwithstanding the foregoing, Tenant may elect to obtain blanket
insurance for each of the foregoing required types of insurance.

      Tenant shall pay the premiums for all insurance policies which Tenant is
obligated to carry under this Paragraph 18 and, prior to the expiration of any
such policy, or as soon as reasonably practicable thereafter, deliver to
Landlord a copy of the renewal policy or policies, or, if Landlord or the
Facility Mortgagee requests, a certificate or certificates thereof, along with
evidence that the premiums therefor have been paid for through, at least, the
next ensuing monthly period or longer as may be required by the premium
installment plan offered by the insurer(s) or premium finance company(ies).
If, pursuant to the terms of any Facility Mortgage, Landlord is required to
establish and fund payments for insurance premiums to any escrow reserve
account established under the loan documents relating to such Facility
Mortgage, then Tenant shall fund all such payments to the reserve account, and
such payments shall constitute Additional Rent hereunder. Any such funds, paid
to an escrow reserve account in connection with insurance premiums shall,
subject to the terms of the applicable Facility Mortgage, be used to pay for
insurance policies required under the Facility Mortgage. Upon the expiration
of the Term, Landlord and Tenant shall apportion and prorate funds on deposit
in any such reserve account, with Tenant being responsible for all insurance
premiums relating to the period prior to the Expiration Date and Landlord
being responsible for all insurance premiums relating to the period on and
after the Expiration Date.

      (d) Failure to Procure Insurance. Landlord shall be entitled to review
any policies of insurance as may be required of Tenant under this Lease. If
Tenant fails to procure insurance required under this Paragraph or fails to
maintain the same in full force and effect continuously during the Term,
Landlord shall be entitled to procure the same and Tenant shall immediately
reimburse Landlord for such premium expense as Additional Rent.

      (e) Intentionally Omitted.

      (f) Indemnification of Landlord. Notwithstanding the existence of any
insurance provided for herein and without regard to the policy limits of any
such insurance, Tenant shall protect, indemnify and hold harmless Landlord
for, from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and reasonable expenses (including, without
limitation, reasonable attorneys' fees), to the maximum extent permitted by
law, imposed upon or incurred by or asserted against Landlord (except to the
extent that any of the following result from Landlord's gross negligence or
willful misconduct after the Commencement Date) by reason of: (i) any
accident, injury to or death of persons or loss of or damage to property
occurring on or about the Leased Property or adjoining sidewalks or right of
way, including, without limitation, any claims of malpractice; (ii) any past,
present or future use, misuse, non-

                                      34
<PAGE>

use, non-compliance, condition, management, maintenance or repair by Tenant or
anyone claiming under Tenant of the Leased Property or the Related Personal
Property or any litigation, proceeding or claim by Government Agencies or
other third parties (other than Condemnation proceedings) to which Landlord is
made a party or participant relating to the Leased Property or the Related
Personal Property or such use, misuse, non-use, non-compliance, condition,
management, maintenance, or repair thereof; (iii) any Impositions (which are
the obligation of Tenant to pay pursuant to the applicable provisions of this
Lease), and (iv) any failure or inability of Tenant to obtain the insurance
coverage required hereunder. If at any time Landlord shall have received
written notice of the assertion of a claim, Landlord shall give reasonably
prompt written notice of such claim to Tenant, provided that (x) Landlord
shall have no liability for the failure to give notice of any claim of which
Tenant has otherwise been notified or has (or should have) knowledge, and (y)
the failure of Landlord to give such a notice to Tenant shall not limit the
rights of Landlord or the obligations of Tenant with respect to such claim,
except to the extent that Tenant suffers actual monetary loss as a result of
such failure. Tenant shall pay all amounts payable under this Paragraph 18(f)
within fifteen (15) Business Days after demand therefor, and if not timely
paid, such amounts shall bear interest at the Overdue Rate from the date
payment thereof is required hereunder to the date of payment. Tenant shall
have the right to control the defense and settlement of any such claim (but
Tenant, without Landlord's prior written consent, which Landlord may withhold
in Landlord's sole and absolute discretion, shall not be permitted to settle
any claim if such settlement would admit criminal liability of Landlord), and
Tenant, at its expense, shall contest, resist and defend any such claim,
action or proceeding asserted or instituted against Landlord or may compromise
or otherwise dispose of the same, with Landlord's prior written consent (which
consent may not be unreasonably withheld, delayed or conditioned), provided no
such consent shall be required if the compromise or settlement shall result in
a complete release of Landlord from the claim so compromised or settled).
Landlord shall have the right (but not the obligation), at Landlord's election
and sole cost and expense, to participate in the defense of any such claim,
and Tenant shall have no obligation to reimburse Landlord for any attorneys'
fees incurred by Landlord in connection with same. The obligations of Tenant
under this Paragraph 18(f) are in addition to the obligations set forth in
Paragraph 19(c) and shall survive the termination of this Lease.

19.   Environmental Matters.

      (a) Tenant's Covenant. Throughout the Term, Tenant covenants that it
shall not cause, permit or allow any Hazardous Materials to be placed, stored,
dumped, dispensed, deposited, used, transported, located, generated or subject
to a Release on the Leased Property in violation of any Environmental Law.
Tenant shall not install or permit the installation of any underground storage
tanks, above ground storage tanks, surface impoundments or asbestos-containing
materials on the Leased Property, unless Landlord consents in writing prior to
the installation. With respect to any asbestos or any asbestos-containing
materials located on or within the Leased Property, Tenant will take
reasonable actions, including implementing an operation and maintenance plan
as are necessary to avoid exposing any Person to asbestos or
asbestos-containing materials.

      (b) Clean-Up. To the extent required by any applicable Environmental
Laws, Tenant shall (i) Remediate the Leased Property to comply with any and
all Environmental Laws regarding Hazardous Materials and Remediation thereof,
and (ii) pay for all Remediation costs at

                                      35
<PAGE>

no cost to Landlord; provided, in each case, such Hazardous Materials were
placed, used, transported, generated or subject to a Release prior to the end
of the Term and do not result from any act or omission after the date hereof
of Landlord (other than a failure to perform Remediation).

      (c) Indemnification. Tenant shall indemnify, release and hold harmless
Landlord, its successors, assigns, members, managers, officers, directors,
shareholders and employees, from and against all Liabilities (as defined
below), suffered by, incurred by or assessed against such parties, their
agents or other representatives, whether incurred as a result of legal action
taken by any Government Agency, taken by any private claimant, or taken by
Landlord, before or after the expiration of the Term as a result of the
Release or Remediation of any Hazardous Materials upon or under, on or off
site, associated with, generated on or flowing or originating from the Leased
Property prior to the end of the Term, provided such Liabilities do not arise
as a result of any act or omission of Landlord or any other indemnitee
hereunder after the Commencement Date (other than a failure to perform
Remediation). The term "Liabilities" as used in this Paragraph 19 is hereby
defined as any and all liabilities, expenses, demands, damages, punitive or
exemplary damages, consequential damages, costs, Remediation costs, losses,
causes of action, claims for relief, reasonable attorneys' fees, other
professional fees, penalties, fines, assessments and charges. Tenant shall
have the right to control the defense or settlement of any such claim (except
that Tenant shall not be authorized to settle criminal charges against
Landlord without obtaining Landlord's, prior written consent, in Landlord's
sole and absolute discretion), and Tenant, at its expense, shall contest,
resist and defend any such claim, action or proceeding asserted or instituted
against Landlord or may compromise or otherwise dispose of the same, with
Landlord's prior written consent (which consent may not be unreasonably
withheld, delayed or conditioned, provided no such consent shall be required
if the compromise or settlement shall result in the complete release of
Landlord from the claim so compromised or settled). Landlord shall have the
right (but not the obligation), at its election and sole cost and expense, to
participate in the defense of any such claim, and Tenant shall have no
obligation to reimburse Landlord for any attorneys' fees incurred by Landlord
in connection with same. The provisions of this Paragraph 19 shall survive the
expiration or sooner termination of this Lease.

      (d) Notice. Tenant shall promptly deliver to Landlord a copy of any
written notice that Tenant receives to notify Landlord of any pending or
threatened claim concerning Environmental Laws and/or Hazardous Material and
the Leased Property. All such notices shall describe in reasonable detail
Tenant's response thereto. Tenant shall provide additional information
relating to any of the foregoing in such detail as may be reasonably requested
by Landlord.

20.   Costs and Attorneys' Fees. If either party shall bring an action to
recover any sum due hereunder, or for any breach hereunder, and shall obtain a
judgment or decree in its favor, the court may award to the prevailing party
in such action its reasonable costs and reasonable attorneys' fees,
specifically including reasonable attorneys' fees incurred in connection with
any appeals (whether or not taxable or assessable as such by law). Landlord
shall also be entitled to recover Landlord's reasonable attorneys' fees and
costs incurred in any bankruptcy action filed by or against Tenant, including,
without limitation, those incurred in seeking relief from the automatic stay,
in dealing with the assumption or rejection of this Lease, in any adversary
proceeding, and in the preparation and filing of any proof of claim.

                                      36
<PAGE>

21.   Default; Remedies.

      (a) Default. Upon the occurrence and during the continuance of any one
or more of the following events (each, an "Event of Default"), Landlord shall
have the right to exercise any rights or remedies available in this Lease, at
law or in equity. Events of Default shall consist of:

            (i) Tenant's failure to pay when due any regularly scheduled
      payment of Rent, or any other sum of money payable hereunder (whether as
      Additional Rent or otherwise) and such failure is not cured within five
      (5) days (or such earlier period as set forth in this Paragraph 21(a));
      provided, however, that no Event of Default shall be deemed to have
      occurred under this Paragraph 21(a)(i), if BLC Holdings cures such
      failure to pay, pursuant to the terms of the Agreement Regarding Leases,
      within such five (5) day period;

            (ii) Tenant's failure to pay when due any other payment of Rent,
      or any other sum of money payable hereunder (whether as Additional Rent
      or otherwise) and such failure is not cured within five (5) days after
      receipt of Notice thereof from Landlord; provided, however, that no
      Event of Default shall be deemed to have occurred under this Paragraph
      21(a)(ii), if BLC Holdings cures such failure to pay, pursuant to the
      terms of the Agreement Regarding Leases, within such five (5) day
      period;

            (iii) Tenant's failure to perform any other of the terms,
      covenants or conditions contained in this Lease if not remedied within
      thirty (30) days after receipt of Notice thereof, or, if such default
      cannot reasonably be remedied within such period, Tenant does not within
      thirty (30) days after Notice thereof commence such act or acts as shall
      be necessary to remedy the default and shall not thereafter diligently
      complete such act or acts within a reasonable time, provided, however,
      in no event shall such cure period extend beyond one hundred eighty
      (180) days after Notice thereof;

            (iv) if (w) Tenant, Lease Guarantor or Guarantor becomes bankrupt
      or insolvent, or files any debtor proceedings, or files pursuant to any
      statute a petition in bankruptcy or insolvency or for reorganization, or
      files a petition for the appointment of a receiver or trustee for all or
      substantially all of its assets, or (x) any of the foregoing are filed
      against Tenant, Lease Guarantor or Guarantor, and such petition or
      appointment shall not have been set aside within ninety (90) days after
      the date of such petition or appointment, or (y) Tenant, Lease Guarantor
      or Guarantor makes an assignment for the benefit of creditors or shall
      admit in writing its inability to pay its debts generally as they become
      due, or (z) Tenant's interest in this Lease is attached, levied upon,
      seized or made subject to any other judicial seizure and such seizure or
      attachment is not discharged within ninety (90) days;

            (v) if Tenant fails to provide insurance coverage (or allows such
      coverage to be canceled or lapse) pursuant to its obligation hereunder;

            (vi) if any of Tenant, Lease Guarantor or Guarantor is liquidated
      or dissolved, or begins proceedings toward such liquidation or
      dissolution, or, in any manner, permits the sale or divestiture of
      substantially all of its assets;

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<PAGE>

            (vii) if a default occurs under Paragraph 15;

            (viii) if there has been a final unappealable determination by the
      applicable Government Agency of the revocation or material limitation of
      any material license, permit, certification or approval required for the
      lawful operation of the Facility in accordance with its Intended Use or
      the loss or material limitation of any license, permit, certification or
      approval under any other circumstances pursuant to which Tenant is
      required to cease its operation of the Facility in accordance with its
      Intended Use at the time of such loss or limitation and such event has a
      material adverse effect on Tenant or Tenant's ability to operate the
      Leased Properties for their Intended Use;

            (ix) if Tenant voluntarily ceases for longer than thirty (30) days
      operation of the Leased Property for its Intended Use, except as a
      result of (A) a Casualty or (B) a partial or complete Condemnation;

            (x) Intentionally Omitted;

            (xi) Intentionally Omitted;

            (xii) Intentionally Omitted;

            (xiii) Tenant breaches any material representation or warranty
      made by Tenant in this Lease and the same has a material adverse affect
      on the financial condition of Tenant, the operations of the Property or
      the value of the Leased Property;

            (xiv) Intentionally Omitted;

            (xv) the issuance or entry against Lease Guarantor or Guarantor of
      any final, unappealable award or judgment (after any applicable appeal
      periods have expired) in an amount of Five Million Dollars
      ($5,000,000.00) or more, and such award or judgment shall continue
      unsatisfied and in effect for a period of ten (10) consecutive days
      without Tenant's demonstrating, to Landlord's reasonable satisfaction,
      that any insurance policy exists that would cover such award or
      judgment;

            (xvi) the final, unappealable termination or suspension by the
      applicable Governmental Agency or other Person of the right of the
      Facility to participate in and receive benefits under Third Party Payor
      Programs, or the final unappealable termination or suspension of the
      right of the Facility to admit residents who would be entitled to
      receive benefits pursuant to such Third Party Payor Programs, if in
      either case (i) the Facility participated in such Third Party Payor
      Program at the time of such termination or suspension, and (ii) the
      revenues received by or payable to such Facility from such Third Party
      Payor Programs equaled or exceeded 10% of the Facility's gross revenues
      in the immediately preceding Lease Year; or

                                      38
<PAGE>

            (xvii) [if an Event of Default (as defined in the Agreement
      Regarding Leases) occurs under the Agreement Regarding Leases.](5)

      Notwithstanding the foregoing, if any applicable Facility Mortgage
provides for a shorter cure or grace period, or does not require notice to be
given to trigger an event of default thereunder for the same obligation as
described above and provided such obligation is a concurrent obligation of
Tenant hereunder, then the provisions for notice (or lack thereof) and cure
under such Facility Mortgage shall supersede the notice and cure provisions
set forth above, it being acknowledged and agreed that all such payments and
obligations of Tenant hereunder shall be made and performed within such time
periods so as to comply with the terms of the Facility Mortgage.

      (b) Remedies. If any of the Events of Default hereinabove specified
shall occur and be continuing, Landlord shall have and may exercise any one or
more of the following rights and remedies:

            (i) Landlord may, by written Notice thereof to Tenant, terminate
      this Lease and, peaceably or pursuant to appropriate legal proceedings,
      re-enter, retake and resume possession of the Leased Property for
      Landlord's own account and recover immediately from Tenant any and all
      Rent and other sums and damages due or in existence at the time of such
      termination, including, without limitation: (A) all Rent and other sums,
      charges, payments, costs and expenses agreed and/or required to be paid
      by Tenant to Landlord hereunder; (B) all reasonable costs and expenses
      of Landlord in connection with the recovery of possession of the Leased
      Property, including reasonable attorneys' fees and court costs; and (C)
      all costs and expenses of Landlord in connection with any reletting or
      attempted reletting of the Leased Property or any part or parts thereof,
      including, without limitation, brokerage fees, reasonable attorneys'
      fees and the cost of any alterations or repairs which may be reasonably
      required to so relet the Leased Property, or any part or parts thereof;
      or

            (ii) Landlord may, pursuant to any prior notice required by law,
      and without terminating this Lease, peaceably or pursuant to appropriate
      legal proceedings, re-enter, retake and resume possession of the Leased
      Property for the account of Tenant, make such alterations of and repairs
      to the Leased Property as may be reasonably necessary in order to relet
      the same or any part or parts thereof and relet or attempt to relet the
      Leased Property or any part or parts thereof for such term or terms
      (which may be for a term or terms extending beyond the Term), at such
      rent and upon such other terms and provisions as Landlord, in its
      reasonable discretion, may deem advisable. In the event that Landlord
      retakes and resumes possession of the Leased Property, it shall use
      reasonable efforts to mitigate any damages it suffered by virtue of such
      Event of Default. Subject to the requirements of any Facility Mortgage,
      upon any such reletting, all rents received by Landlord from such
      reletting shall be applied: (A) first, to the payment of all costs and
      expenses of recovering possession of the Leased Property; (B) second, to
      the payment of any costs and expenses of such reletting, including
      brokerage fees, reasonable attorneys'

-----------------
(5) This provision will be included if the holder of the Existing Facility
Mortgage consents to the inclusion of a cross-default.

                                      39
<PAGE>

      fees and the cost of any alterations and repairs reasonably required for
      such reletting; (C) third, to the payment of any indebtedness, other
      than Rent, due hereunder from Tenant to Landlord, and to satisfy any
      Liens encumbering Tenant's leasehold interest; (D) fourth, to the
      payment of all Rent and other sums due and unpaid hereunder; and (E)
      fifth, the residue, if any, shall be held by Landlord and applied in
      payment of future Rent as the same may become due and payable hereunder.
      If the rents received from such reletting during any period shall be
      less than that required to be paid during that period by Tenant
      hereunder, then Tenant shall promptly pay any such deficiency to
      Landlord and failing the prompt payment thereof by Tenant to Landlord,
      Landlord shall immediately be entitled to institute legal proceedings
      for the recovery and collection of the same. Landlord shall, in
      addition, be immediately entitled to sue for and otherwise recover from
      Tenant any other damages (other than consequential damages) occasioned
      by or resulting from any abandonment of the Leased Property or other
      Event of Default under this Lease other than a monetary Event of
      Default. No such re-entry, retaking or resumption of possession of the
      Leased Property by Landlord for the account of Tenant shall be construed
      as an election on the part of Landlord to terminate this Lease unless a
      Notice of such intention shall be given to Tenant or unless the
      termination of this Lease be decreed by a court of competent
      jurisdiction. Notwithstanding any such re-entry and reletting or
      attempted reletting of the Leased Property or any part or parts thereof
      for the account of Tenant without termination of this Lease, Landlord
      may at any time thereafter, upon Notice to Tenant, elect to terminate
      this Lease or pursue any other remedy available to Landlord for Tenant's
      previous and continuing Event of Default under this Lease; or

            (iii) Landlord may, without re-entering, retaking or resuming
      possession of the Leased Property, sue for all Rent and all other sums,
      charges, payments, costs and expenses due from Tenant to Landlord
      hereunder either: (A) as they become due under this Lease, taking into
      account that Tenant's right and option to pay the Rent hereunder on a
      monthly basis in any particular Lease Year is conditioned upon the
      absence of an Event of Default under this Lease; or (B) at Landlord's
      option, accelerate the maturity and due date of the whole or any part of
      the Rent for the entire then-remaining unexpired balance of the Initial
      Term or the applicable Renewal Term, as the case may be (reduced to its
      present value, applying an interest rate of eight and one-tenth percent
      (8.1%)) less the present value of the fair market rent for the same
      period, plus all other sums, charges, payments, costs and expenses
      required to be paid by Tenant to Landlord hereunder, including, without
      limitation, damages (other than consequential damages) for breach or
      default of Tenant's obligations hereunder in existence at the time of
      such acceleration, such that all sums due and payable under this Lease
      shall, following such acceleration, be treated as being, and in fact
      shall be, due and payable in advance as of the date of such
      acceleration. Landlord may then proceed to recover and collect all such
      unpaid Rent and other sums so sued for from Tenant by distress, levy,
      execution or otherwise. To the extent required by the laws of the
      Facility State, Landlord shall use reasonable efforts to mitigate
      damages suffered by Landlord.

      In addition to the remedies hereinabove specified and enumerated,
Landlord shall have and may exercise the right to invoke any other remedies
allowed at law or in equity as if the remedies of re-entry, unlawful detainer
proceedings and other remedies were not herein provided. Accordingly, the
mention in this Lease of any particular remedy shall not preclude

                                      40
<PAGE>

Landlord from having or exercising any other remedy at law or in equity.
Nothing herein contained shall be construed as precluding Landlord from having
or exercising such lawful remedies as may be and become necessary in order to
preserve Landlord's right or the interest of Landlord in the Leased Property
and in this Lease, even before the expiration of any notice periods provided
for in this Lease, if under the particular circumstances then existing the
allowance of such notice periods will prejudice or will endanger the rights
and estate of Landlord in this Lease and in the Leased Property.

22.   Landlord's Default; Landlord's Right to Dispute.

      (a) Landlord Default. If Landlord shall default in the performance or
observance of any of its covenants or obligations set forth in this Lease and
such default shall continue for a period of thirty (30) days after Notice
thereof from Tenant to Landlord, or such additional period as may be
reasonably required to correct the same provided Landlord has commenced and is
diligently prosecuting a cure thereof, Tenant may declare the occurrence of a
"Landlord Default" by a second Notice to Landlord. Thereafter, Tenant may
forthwith attempt to cure the same and, subject to the provisions of Paragraph
22(b), invoice Landlord for costs and expenses (including reasonable
attorneys' fees and court costs) incurred by Tenant in curing the same,
together with interest thereon at the Overdue Rate from the date that is five
(5) days following the date Landlord receives Tenant's invoice to the date of
payment by Landlord. Tenant shall have no right to terminate this Lease for
any default by Landlord hereunder and no right, for any such default, to
offset or counterclaim against any Rent or other charges due hereunder.

      (b) Landlord's Right to Dispute. If Landlord shall in good faith dispute
the occurrence of any Landlord Default, and Landlord, before the expiration of
the thirty (30) day cure period, shall give Notice thereof to Tenant, setting
forth, in reasonable detail, the basis therefor, Landlord shall have no
obligation with respect to such occurrence or event until a final adverse
determination thereof by a court of competent jurisdiction. Tenant and
Landlord shall in good faith attempt to resolve such dispute and if they fail
to do so within ten (10) days after Landlord's Notice, either may submit the
matter for resolution to a court of competent jurisdiction.

      (c) Tenant Right to Cure Facility Mortgage Default. Notwithstanding
anything to the contrary contained herein (including, without limitation in
Paragraph 22(b) above, if in connection with any Facility Mortgage, Landlord
is unable to obtain from the Facility Mortgagee a Subordination Agreement as
contemplated in Paragraph 35, then Tenant shall have the right, at its sole
election, but upon not less than two (2) Business Days prior written notice to
Landlord, to cure on behalf of Landlord any default by Landlord under the
Facility Mortgage, provided such default was not caused by Tenant and,
provided, further, that such default can be cured by the payment of money. If
Tenant elects to cure any such monetary default under a Facility Mortgage on
behalf of Landlord, then Tenant may off-set any payments made by Tenant under
this Paragraph against Rent payable by Tenant hereunder.

23.   Condemnation.

      (a) Complete Taking. If (i) the whole of the Leased Property shall be
taken by Condemnation or (ii) a Condemnation of less than the whole of the
Leased Property renders the

                                      41
<PAGE>

entire Leased Property Unsuitable for its Intended Use then this Lease shall
automatically terminate as of the Date of Taking, subject to the obligations
of Tenant to deliver to Landlord all Awards to which Landlord is entitled
pursuant to the terms of this Lease and to pay such other amounts as required
by Paragraph 23(c) hereof, which obligations shall survive the termination of
this Lease. Tenant and Landlord shall seek the Award for their interests in
the Leased Property as provided in Paragraph 23(c).

      (b) Partial Taking. If any part of the Leased Property shall be taken by
Condemnation, such that the remaining portion of the Leased Property may
continue to be used for its Intended Use, this Lease shall not terminate or be
terminated, and Tenant shall restore the remaining portion of the Leased
Property to the extent necessary to render it reasonably suitable for its
Intended Use and make all repairs to any Improvements or Related Personal
Property damaged by such taking to the extent necessary to constitute such
Improvements a complete architectural unit and otherwise in accordance with
Legal Requirements and Other Requirements.

      (c) Award. All Awards in any Condemnation, either permanent or
temporary, of all or any part of the Leased Property or any easement or any
appurtenance thereto, including severance and consequential damages and change
in grade of any street, shall, after any required repayment of any applicable
Facility Mortgage pursuant to the terms thereof, be the property of and paid
to Landlord, provided that the Award in connection with any partial taking
shall be made available by Landlord to pay or reimburse Tenant for the cost of
restoration or rebuilding. All or any portion of the Award that is to be made
available to Tenant for restoration or rebuilding in connection with any such
partial taking shall be held and disbursed by Escrow Agent in the manner and
under the conditions provided in Paragraph 17. Any surplus which may remain
out of any Award after any required repayment of any applicable Facility
Mortgage and any payment or reimbursement to Tenant of the cost of restoration
or rebuilding shall be retained by Landlord, and the Lease Basis shall be
reduced by the amount so retained. Notwithstanding the foregoing, any Award
made for the Tenant's leasehold interest in the Leased Property, the loss of
Tenant's business for the remainder of the Term and relocation expenses of
Tenant shall be paid to and be the property of Tenant; provided, that, in the
event of a Condemnation which causes this Lease to terminate as provided in
this Paragraph 23, Tenant shall not be entitled to any portion of the Award
unless Landlord shall have previously received a portion of the Award at least
equal to the Minimum Option Purchase Price.

      (d) Notices. Each of Landlord and Tenant further covenants and agrees to
give the other immediate Notice of the actual or threatened commencement of
any Condemnation proceedings and to deliver to the other copies of any and all
papers served in connection with any such proceedings.

24.   Reports and Statements. Tenant shall furnish the following reports and
statements to Landlord during the Term; provided, however, that with respect
to the items listed in clauses (i) through (v) below, Tenant shall be required
to furnish same only if and to the extent such reports are required to be
delivered to any Facility Mortgagee pursuant to the loan documents relating to
the applicable Facility Mortgage, whereupon Tenant shall furnish such reports
listed in clauses (i) through (v) below simultaneously with the delivery of
the same to such Facility Mortgagee (except to the extent that (x) Tenant is
legally prohibited from delivering such information based

                                      42
<PAGE>

on the facility-resident relationship and/or the physician-resident privilege
under applicable laws or under any security, health, safety or confidentiality
requirements imposed by applicable law or regulations or (y) Tenant's ordinary
business practices and standard resident agreements, if any, require Tenant to
maintain the confidential nature of certain personal information relating to
individual residents living in the Facility, in which case, such protected
information shall be redacted from the material otherwise required to be
delivered hereunder):

            (i) copies of all licenses authorizing Tenant to operate the
      Facility for its Intended Use (together with any renewals or extensions
      thereof), accompanied by an Officer's Certificate certifying that copies
      of such licenses are accurate and complete in all material respects;

            (ii) true and complete copies of a report regarding the compliance
      of the Leased Property with all licenses, permits and authorizations
      necessary for the use thereof in accordance with its Intended Use;

            (iii) all Medicare and Medicaid certifications, together with
      provider agreements and all material correspondence relating thereto
      with respect to the Facility, if any (excluding, however, correspondence
      which may be subject to any attorney-client privilege);

            (iv) all reports or surveys, statements of deficiencies, plans of
      correction, and all material correspondence relating thereto, including,
      without limitation, all reports and material correspondence concerning
      compliance with or enforcement of licensure, Medicare/ Medicaid (if
      applicable), all accreditation requirements including physical
      environment and Life Safety Code survey reports (excluding, however,
      correspondence which may be subject to any attorney-client privilege);

            (v) such other confirmation as to the licensure and, if
      applicable, Medicare and Medicaid participation of Tenant as Landlord
      may reasonably request from time to time;

            (vi) as soon as available, and in any event within forty-five (45)
      days after the end of each calendar year and within thirty (30) days
      after the end of each calendar quarter with respect to the first three
      (3) quarters of each calendar year, unaudited financial statements
      prepared for such calendar year or calendar quarter, as the case may be,
      with respect to Tenant, including a balance sheet, operating statement,
      statement of cash flows and any interim adjustment ledger maintained by
      Tenant, if any, as of the end of such calendar year or calendar quarter,
      as applicable, each accompanied by an Officer's Certificate certifying
      that the information contained therein is true and correct in all
      material respects;

            (vii) within thirty (30) days after the end of each calendar
      month, an income statement for the Tenant, occupancy reports and a rent
      roll for the Facility (including the amounts paid by residents at the
      Facility); and

                                      43
<PAGE>

            (viii) any statements, reports and other information with respect
      to Tenant or the operation of the Leased Property required pursuant to
      any Facility Mortgage or otherwise reasonably requested by Landlord.

25.   Additional Covenants of Tenant.

      (a) Indebtedness of Tenant. Tenant shall not create, incur, assume or
guarantee, or permit to exist, or become or remain liable directly or
indirectly upon, any indebtedness except the following:

            (i) indebtedness of Tenant to Landlord or to Manager under the
Management Agreement;

            (ii) indebtedness of Tenant for current taxes, assessments,
      governmental charges of levies, to the extent that payment thereof shall
      not at the time be required to be made in accordance with the provisions
      of Paragraph 26;

            (iii) unsecured borrowings from any Related Party (other than
      Landlord or its Affiliates) which are by their terms expressly
      subordinate to the payment and performance of Tenant's obligations under
      this Lease;

            (iv) indebtedness for purchase money financing of goods and
      services in an amount not to exceed Two Hundred Fifty Thousand Dollars
      ($250,000.00), in the aggregate, incurred in the ordinary course of
      business, provided that any such indebtedness in excess of $250,000.00
      incurred in the ordinary course of business shall be subject to
      Landlord's consent, which shall not be unreasonably withheld,
      conditioned or delayed; or

            (v) unsecured trade payables incurred in the ordinary course of
      business.

      (b) Management of Leased Property; Joinder by Manager. Tenant shall not
enter into or permit to exist any management agreement with respect to the
Leased Property, or make any material modification of an approved management
agreement, unless the terms thereof have been previously approved in writing
by Landlord, which approval may be withheld in Landlord's reasonable
discretion; provided, however, that Landlord hereby approves the terms of the
Management Agreement. Notwithstanding the foregoing, and subject to the terms
of any Facility Mortgage, Tenant may replace the Manager with a Affiliate of
Guarantor without Landlord's consent, provided (i) Tenant provides Landlord
with at least ten (10) Business Days prior written notice of the proposed
replacement, (ii) the Management Agreement then in place does not change, but
is assigned to any such replacement Manager, (iii) the replacement Manager
executes an assignment and assumption agreement pursuant to which it agrees to
be bound by all of the terms and provisions of the Management Agreement, and
Tenant promptly delivers to Landlord copies thereof, (iv) the replacement
Manager executes and delivers to Landlord the documentation required by the
last sentence of this Paragraph 25(b), and (v) the resulting management
agreement is subject to the manager termination provisions in Paragraph 28 of
the Agreement Regarding Leases. Subject to the rights of any Facility
Mortgagee, all management fees, payments in connection with any extension of
credit and fees for services provided in connection with the operation of the
Leased Property, payable by Tenant to Manager under the

                                      44
<PAGE>

Management Agreement are hereby subordinated to all of the obligations of
Tenant due under this Lease, and Manager's consent to such subordination is
evidenced by its joining into this Lease solely to acknowledge and agree to
the subordination and the other terms and conditions set forth in this
Paragraph 25(b). Upon replacement of the Manager in accordance with the terms
of this Lease, Tenant shall, and shall cause the new Manager of the Leased
Property to, execute (x) a Manager's Consent and Subordination of Property
Management Agreement, in form and substance reasonably acceptable to Landlord
and the new Manager, which shall provide that any fee relating to the
management or operation of the Leased Property is and shall at all times
remain subordinate to the payments of Rent hereunder and that such replacement
agreement shall be subject to the termination provisions of Paragraph 28 of
the Agreement Regarding Leases, and (y) a Manager's Consent and Subordination
of Property Management Agreement, in form and substance reasonably acceptable
to any applicable Facility Mortgagee and the new Manager, which shall provide
that any fee relating to the management or operation of the Leased Property is
and shall at all times remain subordinate to the payments under the Facility
Mortgage.

      (c) Landlord Lien. In additional to any statutory landlord's lien and in
order to secure payment of the Rent and all other sums payable hereunder by
Tenant, and to secure payment of any loss, cost or damage which Landlord may
suffer by reason of an Event of Default, Tenant hereby grants unto Landlord,
to the maximum extent permitted by Applicable Law, a security interest in and
express contractual lien upon Tenant's interest in all ledger sheets, files,
records, documents and instruments (including, without limitation, computer
programs, tapes and related electronic data processing) relating to the
operation of the Facility and all proceeds therefrom, subject to any Permitted
Encumbrances.

      (d) Capital Additions. Subject to the provisions of Paragraph 10(b) of
the Agreement Regarding Leases, during each Lease Year of the Term, Tenant
shall expend on Capital Additions made to the Facility an amount at least
equal to the Minimum Capital Additions Amount. As used herein, the term
"Minimum Capital Additions Amount" shall mean the product of (i) the number of
units contained in the Facility multiplied by (ii) Four Hundred Fifty Dollars
($450) during the first Lease Year of the Term, as such amount shall be
increased on the first day of each succeeding Lease Year of the Term in
proportion to increases in the Consumer Index. The Minimum Capital Additions
Amount may be adjusted from time to time based on the requirements of any
Facility Mortgagee, provided any such provisions regarding the funding of
capital replacement reserves under any future Facility Mortgage shall be in
compliance with the requirements of Paragraph 54(b). In addition, Landlord and
Tenant agree to review the Minimum Capital Additions Amount periodically (but
in no event less than annually), to provide for the proper operation and
maintenance of the Facility.

      (e) Capital Additions Reserve. Upon Landlord's written request or if
otherwise required by any Facility Mortgagee, Tenant shall establish a reserve
fund for the Minimum Capital Additions Amount (the "Capital Additions
Reserve"), which reserve fund shall be held in Landlord's name or in the name
of the Facility Mortgagee, if applicable, in an escrow account with a
financial institution designated by Landlord or by the Facility Mortgagee, if
applicable. If the Capital Additions Reserve is established, Tenant shall
deposit therein one-twelfth (1/12th) of the Minimum Capital Additions Amount
each month. All moneys deposited into the Capital Additions Reserve shall be
maintained for the payment of, or reimbursement to Tenant for,

                                      45
<PAGE>

Capital Additions Costs (other than with respect to Landlord Capital
Additions). Tenant shall convey, pledge and grant to Landlord or the Facility
Mortgagee, as applicable, a security interest in the Capital Additions Reserve
in order to secure Tenant's obligations to pay Rent and other charges under
this Lease. Tenant shall cooperate with Landlord and the Facility Mortgagee,
if applicable, in connection with perfecting any such security interest.

      (f) Operation of the Facility. Tenant shall operate the Facility in at
least as high a standard of operation as the Facility is currently operated as
of the date of this Lease.

26.   Permitted Contests. Tenant shall have the right to contest the amount or
validity of any Legal Requirement, Insurance Requirement, Lien, Imposition,
charge or other claim (collectively, "Claims") as to the Leased Property, by
appropriate legal proceedings, conducted in good faith and with due diligence,
provided that (i) the foregoing shall in no way be construed as relieving,
modifying or extending Tenant's obligation to pay any Claims as finally
determined; (ii) such contest shall not cause Landlord to be in default under
any Facility Mortgage; (iii) no part of the Leased Property nor any Rent
therefrom shall be in any immediate danger of sale, forfeiture, attachment or
loss; and (iv) Tenant shall indemnify and hold harmless Landlord from and
against any cost, claim, damage, penalty or reasonable expense, including
reasonable attorneys' fees, incurred by Landlord in connection therewith or as
a result thereof. Upon Landlord's request, Tenant shall either (x) provide a
bond, title indemnity, endorsement or other assurance reasonably satisfactory
to Landlord that all Claims which may be assessed against the Leased Property,
together with all interest and penalties thereon, will be paid, or (y) deposit
within the time otherwise required for payment with the Escrow Agent or
another financial institution reasonably acceptable to Landlord, as security
for the payment of such Claims, an amount sufficient to pay the same, together
with interest and penalties in connection therewith and all Claims which may
be assessed against or become a Claim on or with respect to the Leased
Property, or any part thereof, in connection with any such contest. Tenant
shall furnish Landlord with reasonable evidence of such deposit, title
indemnity, endorsement or other assurance within five (5) Business Days after
request therefor. Landlord agrees to join in such proceedings if required
legally to prosecute such contest (and shall cooperate with Tenant's
reasonable requests in connection therewith, at Tenant's sole cost and
expense), provided that Landlord shall not thereby be subjected to any
liability therefor (including, without limitation, for the payment of any
costs or expenses in connection therewith). Tenant shall be entitled to any
refund of any Claims and such charges and penalties or interest thereon which
have been paid by Tenant or paid by Landlord and for which Landlord has been
fully reimbursed by Tenant. If Tenant shall fail (A) to pay any Claims
promptly after such Claim is finally determined (with no further right of
appeal), (B) to provide security therefor as provided in this Paragraph 26, or
(C) to prosecute any such contest diligently and in good faith, Landlord may,
upon reasonable Notice to Tenant, pay such charges, together with interest and
penalties due with respect thereto, and Tenant shall reimburse Landlord
therefor, upon demand.

27.   Notices of Commencement of Construction. If required by the laws of the
Facility State or in the event permitted by the laws of the Facility State and
Landlord so requests upon Tenant giving Notice to Landlord of its intended
construction, and if Tenant reasonably contemplates construction of any work
on the Leased Property will cost, in the aggregate, Two Hundred Fifty Thousand
Dollars ($250,000.00) or more for such project, prior to commencement by
Tenant of any work on the Leased Property which shall have been previously
permitted by

                                      46
<PAGE>

Landlord as provided in this Lease, Tenant shall record or file a notice of
the commencement of such work (the "Notice of Commencement") in the land
records of the county in which the Leased Property is located, identifying
Tenant as the party for whom such work is being performed, stating such other
matters as may be required by applicable law and requiring the service of
copies of all notices, liens or claims of lien upon Landlord. Any such Notice
of Commencement shall clearly reflect that the interest of Tenant in the
Leased Property is that of a leasehold estate and shall also clearly reflect
that the interest of Landlord, as the fee simple owner of the Leased Property
[ground leasehold owner [PONCE DE LEON]], shall not be subject to mechanics or
materialmen's liens on account of the work which is the subject of such Notice
of Commencement. A copy of any such Notice of Commencement shall be furnished
to and approved by Landlord (in Landlord's reasonable discretion) and its
attorneys prior to the recording or filing thereof, as aforesaid.

28.   Limitation on Liability of Landlord and Tenant. If Tenant is awarded a
money judgment against Landlord, except, with respect to Paragraph 5 and
Paragraph 35 of the Agreement Regarding Leases (to the extent to which
Provident has agreed to be bound thereby pursuant to the express terms of the
Agreement Regarding Leases), then Tenant's sole recourse for satisfaction of
such judgment shall be limited to execution against the Leased Property. In no
event shall any trustee, stockholder, shareholder, member, manager, partner,
employee, officer or beneficiary of Landlord be personally liable for the
obligations of Landlord hereunder. Except to the extent provided in any Parent
guaranty or indemnity, in no event shall any trustee, shareholder, member,
guarantor, partner, employee, officer or beneficiary of Tenant or any
Affiliate of Tenant be personally liable for any of the obligations of Tenant
hereunder.

29.   "Net" Lease/No Impairment.

      (a) "Net" Lease. Landlord and Tenant acknowledge and agree that this
Lease shall be and constitute what is generally referred to as a "triple net"
or "absolute net" lease, such that Tenant shall be obligated hereunder to pay
all costs and expenses howsoever incurred with respect to, and associated
with, the Leased Property and the Facility, including, without limitation, all
Impositions, utility charges, insurance costs, maintenance costs, replacement
costs and repair and restoration expenses (all as more particularly herein
provided).

      (b) No Affect or Impairment. The obligations of Tenant hereunder shall
not be affected or impaired by reason of (a) any damage to, or destruction of,
the Leased Property or any portion thereof, from whatever cause, or any
Condemnation of the Leased Property or any portion thereof (except as
otherwise expressly and specifically provided in Paragraph 17 or Paragraph
23), (b) the interruption or discontinuation of any service or utility
servicing the Leased Property, (c) the lawful or unlawful prohibition of, or
restriction upon, Tenant's use of the Leased Property, or any portion thereof,
due to the interference with such use by any Person or eviction by paramount
title, except as provided in Paragraph 33, (d) except as provided in Paragraph
22, any claim that Tenant has or might have against Landlord on account of any
breach of warranty or default by Landlord under this Lease or any other
agreement by which Landlord is bound, (e) any bankruptcy, insolvency,
reorganization, composition, readjustment, liquidation, dissolution, winding
up or other proceedings affecting Landlord or any assignee or transferee of
Landlord, (f) the revocation, suspension or non-renewal of any license,
permit, approval or other authorization necessary for the use of the Facility
for its Intended Use, or (g)

                                      47
<PAGE>

for any other cause whether similar or dissimilar to any of the foregoing
other than a discharge of Tenant from any such obligations as a matter of law.
Tenant hereby specifically waives all rights, arising from any occurrence
whatsoever, which may now or hereafter be conferred upon it by law (i) to
modify, surrender or terminate this Lease or quit or surrender the Leased
Property or any portion thereof, or (ii) that would entitle Tenant to any
abatement, reduction, suspension or deferment of the Rent or other sums
payable by Tenant hereunder. The obligations of Landlord and Tenant hereunder
shall be separate and independent covenants and agreements and the Rent and
all other sums payable by Tenant hereunder shall continue to be payable in all
events unless otherwise expressly provided herein.

30.   Representations and Warranties.

      (a) Representations of Tenant. To induce Landlord to enter into this
Lease, Tenant represents and warrants to Landlord as follows:

            (i) Status and Authority of Tenant. Tenant is a limited liability
      company duly organized, validly existing and in good standing under the
      laws of the State of Delaware. Tenant has all requisite power and
      authority to enter into and perform its obligations under this Lease and
      to consummate the transactions contemplated hereby, including such
      licensing as may be required for Tenant to lease and operate the Leased
      Property for the Intended Use. Tenant has duly qualified to transact
      business in each jurisdiction in which the nature of the business
      conducted by it requires such qualification.

            (ii) Action of Tenant. Tenant has taken all necessary action to
      authorize the execution, delivery and performance of this Lease, and
      this Lease constitutes the valid and binding obligation and agreement of
      Tenant, enforceable against Tenant in accordance with its terms, except
      as enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws of general application
      affecting the rights and remedies of creditors.

            (iii) No Violations of Agreements. To the best of Tenant's
      knowledge, except as permitted or contemplated by this Lease, the
      Facility Mortgage or the Bond Documents, neither the execution, delivery
      or performance of this Lease by Tenant, nor compliance with the terms
      and provisions hereof, will result in any breach of the terms,
      conditions or provisions of, or conflict with or constitute a default
      under, or result in any breach of the terms, conditions or provisions
      of, or conflict with or constitute a default under, or result in the
      creation of any lien, charge or encumbrance upon the Leased Property
      pursuant to the terms of any indenture, mortgage, deed of trust, note,
      evidence of indebtedness or any other material agreement or instrument
      by which Tenant is bound.

            (iv) Litigation. Tenant has received no written notice, and, to
      Tenant's knowledge, no action or proceeding is pending or threatened,
      which questions the validity of this Lease.

      (b) Representations of Landlord. To induce Tenant to enter into this
Lease, Landlord represents and warrants to Tenant as follows:

                                      48
<PAGE>

            (i) Status and Authority of Landlord. Landlord is a duly
      organized, validly existing limited liability company and in good
      standing under the laws of the State of Delaware, and has all requisite
      power and authority under the laws of such state to enter into and
      perform its obligations under this Lease and, to consummate the
      transactions contemplated hereby. Landlord has duly qualified and is in
      good standing in each jurisdiction in which the nature of the business
      conducted by it required such qualification.

            (ii) Action of Landlord. Landlord has taken all necessary action
      to authorize the execution, delivery and performance of this Lease, and,
      upon the execution and delivery of this Lease by Landlord, this Lease
      shall constitute the valid and binding obligation and agreement of
      Landlord, enforceable against Landlord in accordance with its terms,
      except as enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium or similar laws of general application
      affecting the rights and remedies of creditors.

            (iii) No Violations of Agreements. Neither the execution, delivery
      or performance of this Lease by Landlord, nor compliance with the terms
      and provisions hereof, will result in any breach of the terms,
      conditions or provisions of, or conflict with or constitute a default
      under, or result in any creation of any lien, charge or encumbrance upon
      any of the property or assets of Landlord pursuant to the terms of any
      indenture, mortgage, deed of trust, note, evidence of indebtedness or
      any other material agreement or instrument by which Landlord is bound.

            (iv) Litigation. No investigation, action or proceeding is pending
      and, to Landlord's knowledge, no action or proceeding is threatened
      which questions the validity of this Lease or any action taken or to be
      taken pursuant hereto.

31. Notices. All notices, approvals, requests, consents and other
communications ("Notices") given pursuant to this Lease shall be in writing
and shall be deemed to have been duly given (i) when actually received if
either (A) hand delivered or (B) sent by facsimile transmission, with evidence
of receipt; (ii) two (2) days after the same was deposited in a regularly
maintained receptacle for the deposit of United States mail, sent by
registered or certified mail, postage and charges prepaid; or (iii) on the
next Business Day if sent via a national overnight delivery service,
addressed, in each case, as follows or at such other address as either party
may specify from time to time at least five (5) days prior Notice to the other
party of the changed address:

      If to Tenant:           BLC-________________, LLC
                              c/o Brookdale Living Communities, Inc.
                              330 North Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  R. Stanley Young
                              Telephone:  (312) 977-3720
                              Facsimile: (312) 977-3699

                                      49
<PAGE>

      with a copy to:         Brookdale Living Communities, Inc.
                              330 N. Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  General Counsel
                              Telephone: (312) 977-3760
                              Facsimile: (312) 977-3769

      and to:                 Douglas E. Wambach
                              Burke, Warren, MacKay & Serritella, P.C.
                              330 North Wabash Avenue, 22nd Floor
                              Chicago, Illinois 60611
                              Telephone:  (312) 840-7019
                              Facsimile:  (312) 840-7900

      If to Lease Guarantor:  Brookdale Provident Properties, LLC
                              c/o Brookdale Living Communities, Inc.
                              330 North Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  R. Stanley Young
                              Telephone:  (312) 977-3720
                              Facsimile:  (312) 977-3699

      with a copy to:         Brookdale Living Communities, Inc.
                              330 N. Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  General Counsel
                              Telephone:  (312) 977-3760
                              Facsimile:  (312) 977-3769

      and to:                 Douglas E. Wambach
                              Burke, Warren, MacKay & Serritella, P.C.
                              330 North Wabash Avenue, 22nd Floor
                              Chicago, Illinois 60611
                              Telephone:  (312) 840-7019
                              Facsimile:  (312) 840-7900

      If to Landlord:         PSLT-BLC ____________, LLC
                              c/o Fortress Investment Group
                              1251 Avenue of the Americas
                              16th Floor
                              New York, NY 10020
                              Attention:  Darryl Copeland, Jr.
                              Telephone:  (212) 798-6064
                              Facsimile:  (___) ___-____

                                      50
<PAGE>

      with a copy to:         Sidley Austin Brown & Wood LLP
                              787 Seventh Avenue
                              New York, New York 10019
                              Attention:  Robert L. Golub, Esq.
                              Telephone:  (212) 839-5326
                              Facsimile:  (212) 839-5599

32.   No Waiver. No course of dealing between Landlord and Tenant, or any delay
or omission of Landlord or Tenant to insist upon a strict performance of any
term or condition of this Lease shall be deemed a waiver of any right or
remedy that such party may have, and shall not be deemed a waiver of any
subsequent breach of such term or condition.

33.   Quiet Enjoyment. Landlord covenants that Tenant, upon paying the Rent and
observing and keeping the covenants, agreements and stipulations of this Lease
on its part to be kept, shall lawfully, peaceably and quietly hold, occupy and
enjoy the Leased Property during the Term without hindrance, ejection or
molestation. Landlord covenants and warrants that it is lawfully seized of the
Leased Property and has good, right and lawful authority to enter into this
Lease for the full term aforesaid, that the Leased Property is free and clear
of all encumbrances that would prevent Landlord from having such right and
authority and that Landlord will put Tenant in actual possession of the Leased
Property on the Commencement Date.

34.   Intentionally deleted.

35.   Subordination, Non-Disturbance and Attornment. If Landlord places any
Facility Mortgage (other than an Existing Facility Mortgage) on the Leased
Property (regardless of whether such Facility Mortgage is a Brookdale
Requested Refinancing), Tenant agrees to enter into, execute and deliver
promptly to the Facility Mortgagee a subordination, non-disturbance and
attornment agreement substantially similar to the form attached hereto as
Exhibit C or such other form as shall be reasonably acceptable to Landlord,
Tenant and the applicable prospective Facility Mortgagee (the "Subordination
Agreement") with any such Facility Mortgagee, which shall provide, among other
things, that if the Facility Mortgagee or any other Person acquires title to
the Leased Premises, so long as Tenant is not in default (beyond the
expiration of any applicable notice and/or grace period) under this Lease,
Tenant's possession and occupancy of the Leased Premises shall not be
disturbed, and which Subordination Agreement shall acknowledge that (subject
to the foregoing) this Lease, Tenant's interest hereunder and Tenant's
leasehold interest in and to the Leased Property are junior, inferior,
subordinate and subject in right, title, interest, lien, encumbrance, priority
and all other respects to the lien of the applicable Facility Mortgage. If,
within fifteen (15) days following Tenant's receipt of a written request by
Landlord or the holder or proposed holder of any such Facility Mortgage,
Tenant shall fail or refuse or shall have not executed any such Subordination
Agreement, Tenant shall be in breach and default of its obligation to do so
and of this Lease and Landlord shall be entitled thereupon to exercise any and
all remedies available to Landlord pursuant to this Lease or otherwise
provided by law.

36.   Brokers. Each of Landlord and Tenant represent and warrant to the other
that neither of them has engaged or contracted with any person, firm or entity
to serve or act as a broker, agent or finder for the purpose of leasing the
Leased Property, and that no broker's or real estate or

                                      51
<PAGE>

other similar commissions or fees are or shall be due in respect of the
transaction contemplated by this Lease. Each of Landlord and Tenant shall
indemnify, defend and save harmless the other from and against any cost and
expense, including reasonable attorney's fees, incurred by the other as a
result of the untruth of any of the foregoing representations made by it. The
terms of the Paragraph 36 shall survive the termination or expiration of this
Lease.

37.   Invalidity. If any provision of this Lease shall be declared invalid or
unenforceable, the remainder of this Lease shall continue in full force and
effect.

38.   Counterparts. This Lease may be executed in two (2) or more counterparts,
which taken together shall be deemed one (1) original.

39.   Memorandum of Lease. The parties hereto agree not to record this Lease.
The parties agree to execute and to record in the appropriate local registry,
at Tenant's sole cost and expense, a Memorandum of Lease in the form attached
hereto as Exhibit B.

40.   Cumulative. All rights and remedies of Landlord and Tenant herein shall be
cumulative and none shall be exclusive of any other or of any rights and
remedies allowed by law.

41.   Governing Law. Except as to matters regarding the internal affairs of
Landlord and issues of or limitations on any personal liability of the members
or managers of Landlord for obligations of Landlord, as to which the laws of
the State of Delaware shall govern, this Lease shall be interpreted,
construed, applied and enforced in accordance with the laws of the Facility
State.

42.   Successors and Assigns; Relationship. The covenants, terms, conditions,
provisions, and undertakings in this Lease shall extend to and be binding upon
the permitted successors, and assigns of the respective parties hereto, and
shall be construed as covenants running with the land. This Lease creates and
evidences a lease between Landlord and Tenant, and not a partnership, joint
venture, or other type of ownership, inconsistent with a lease, and neither
Landlord nor Tenant shall make any representation to the contrary.

43.   Entire Agreement. Except for the terms and conditions of the Agreement
Regarding Leases, this Lease and any exhibits attached hereto, contains the
entire agreement and understanding between the parties with respect to the
subject matter hereof. There are no oral understandings, terms, or conditions,
and neither party has relied upon any representation, express or implied, with
respect to the subject matter hereof not contained in this Lease or the
Agreement Regarding Leases. All prior understandings, terms, or conditions
with respect to the subject matter hereof are deemed merged in this Lease.
This Lease cannot be changed or supplemented orally, but may be modified or
amended only by a written instrument executed by the parties. Any disputes
regarding the interpretation of any portion of this Lease shall not be
presumptively construed against the drafting party.

44.   Survival. Tenant's indemnity obligations herein, including, without
limitation, those set forth in Paragraph 18(f) and Paragraph 19(c) shall
survive termination of this Lease.

45.   Estoppel Certificates. Each of Landlord and Tenant shall from time to
time, within fifteen (15) Business Days after request by the other and without
charge, give to any person, firm

                                      52
<PAGE>

or corporation specified by the requesting party an estoppel certificate
containing such matters with respect to this Lease as may be reasonably
requested. If the estoppel certificate is not returned within such fifteen
(15) Business Day period, such party shall be deemed to have consented to the
information contained therein as if it had executed such Estoppel Certificate
and returned it to the requesting party.

46.   Time. Time is of the essence in every particular of this Lease, including,
without limitation, obligations for the payment of money.

47.   Captions and Headings. The captions and headings in this Lease have been
inserted herein only as a matter of convenience and for reference and in no
way define, limit or describe the scope or intent of, or otherwise affect, the
provisions of this Lease.

48.   Waiver of Jury Trial. TO THE EXTENT ALLOWED BY APPLICABLE LAW, TENANT AND
LANDLORD HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT
EITHER OF THEM OR THEIR HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS OR ASSIGNS
MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS LEASE OR ANY AGREEMENT CONTEMPLATED TO BE
EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION
IS A MATERIAL INDUCEMENT TO LANDLORD'S ACCEPTING THIS LEASE.

49.   Signage. Tenant shall have the right to install signs containing Tenant's
trade name and such other identification signs on the Leased Property as are
permitted by applicable Legal Requirements. Tenant shall obtain all
governmental permits, licenses and approvals necessary to erect such signs,
and shall maintain such signs in good condition and repair, ordinary wear and
tear excepted (subject to Tenant's obligations under clauses (ii) and (iii) of
Paragraph 8(a)). Tenant shall not remove any identification signs without
first obtaining Landlord's written consent, which shall not be unreasonably
withheld or delayed.

50.   Lease Guaranty. At the time of Tenant's execution of this Lease, Tenant
shall obtain the execution of the guaranty agreement in the form of Exhibit D
attached hereto (the "Lease Guaranty") by Lease Guarantor.

51.   Intentionally Omitted.

52.   Public Offering Information; Delivery of Information. Tenant specifically
agrees that Landlord (or Landlord's direct or indirect Parent) may include
financial information and information concerning Tenant, Lease Guarantor,
Guarantor and the operation of the Leased Premises that does not violate the
confidentiality of the facility-resident relationship and the
physician-resident privilege under applicable laws, in offering memoranda or
prospectuses, or similar publications in connection with syndications, private
placements or public offerings of Landlord's (or Landlord's direct or indirect
Parent's) securities or interests, and any other reporting requirements under
applicable federal and state laws, including those of any successor to
Landlord (or Landlord's direct or indirect Parent. Tenant agrees to provide
such other

                                      53
<PAGE>

reasonable information necessary with respect to Tenant, the Facility and the
Leased Property to facilitate a private placement or a public offering or to
satisfy the SEC or regulatory disclosure requirements. Tenant agrees to cause,
at Landlord's sole cost and expense, Tenant's independent accountants to
consent to the inclusion of their audit report issued with respect to such
financial statements in any registration statement or other filing under
federal and state laws and to provide the underwriters participating in any
offering of securities or interests of Landlord (or Landlord's direct or
indirect Parent) with a standard accountant's "comfort" letter with regard to
the financial information of Tenant or the Leased Property included or
incorporated by reference into any prospectus or other offering document.
Tenant also agrees to make available to any underwriter participating in an
offering of Landlord's (or Landlord's direct or indirect Parent's) securities
or interests, and any attorney, accountant or other agent or representative
retained by an underwriter (an "Inspector"), all financial and other records
and pertinent corporate documents of Tenant as shall be reasonably necessary
to enable them to exercise their due diligence responsibility, and cause
Tenant's directors, officers and employees to supply all information requested
by any such Inspector in connection with such offering. Prior to any
submission or circulation of any such offering memoranda, prospectuses or
similar publications, Landlord shall provide to Tenant copies such documents
for the purpose of reviewing same. Upon request of Landlord, Tenant shall
notify Landlord of any necessary corrections to information Landlord proposes
to publish within a reasonable period of time (not to exceed three (3)
Business Days) after being informed thereof by Landlord.

53. Appraisal Procedure. If it becomes necessary to determine the Fair Market
Lease Rate or the Fair Market Value of the Facility for any purpose of this
Lease and the parties cannot agree thereon, such calculation shall be
determined upon the written demand of either party in accordance with the
following procedure:

            (i) The party requesting an appraisal, by Notice given within
      thirty (30) days after the date of the event that requires or permits
      such procedure, shall propose and unilaterally approve an appraiser
      licensed to perform MAI appraisals and experienced in the valuation of
      assisted living, independent living or skilled nursing facilities (a
      "Qualified Appraiser"). The other party, by Notice given within fifteen
      (15) days after receipt of such Notice appointing the first Qualified
      Appraiser, may appoint a second Qualified Appraiser. If the other party
      fails to appoint the second Qualified Appraiser within such fifteen (15)
      day period, such party shall have waived its right to appoint a
      Qualified Appraiser, and the first Qualified Appraiser shall make the
      sole determination of the Fair Market Lease Rate or the Fair Market
      Value.

            (ii) The selected Qualified Appraiser or Appraisers shall
      thereupon determine the Fair Market Lease Rate or the Fair Market Value,
      as the case may be. Each such Qualified Appraiser shall, within thirty
      (30) days following its appointment, submit its appraisal of such fair
      market value or fair market lease rate to each of Landlord and Tenant in
      writing, and if the amounts set forth in such appraisals vary by five
      percent (5%) or less of the greater value, the Fair Market Lease Rate or
      the Fair Market Value, as applicable, shall be determined by calculating
      the average of the two determinations by the two appraisers.

                                      54
<PAGE>

            (iii) If the fair market lease rate or the fair market value, as
      applicable, set forth in the two appraisals vary by more than five
      percent (5%) of the greater of the two values, the two Qualified
      Appraisers shall select a third Qualified Appraiser within an additional
      fifteen (15) days following the submittal of the last appraisal. If the
      two appraisers are unable to agree upon the appointment of a third
      appraiser within such fifteen (15) day period, either party may, upon
      written notice to the other, request that such appointment be made by
      the then President (or equivalent officer) of the Chapter of the
      American Institute of Real Estate Appraisers in the Facility State, or
      his or her designee or, if there is no such organization or if such
      individual declines to make such appointment, by any state or Federal
      court of competent jurisdiction for the Facility State.

            (iv) Within twenty (20) days following its selection, the third
      appraiser shall review the two (2) appraisals and select the appraisal
      that it determines most clearly reflects the fair market lease rate or
      the fair market value. The selected fair market lease rate or fair
      market value shall then be the Fair Market Lease Rate or the Fair Market
      Value, as the case may be.

            (v) In connection with the appraisal process, Tenant shall provide
      the appraisers full access during normal business hours to examine the
      Facility, the books, records and files of Tenant and all agreements,
      leases and other operating agreements relating to the Facility. The
      costs of each party's appraisal shall be borne by the selecting party
      and the cost of the third appraisal shall be shared equally. Upon
      determining such value, the appraisers shall promptly notify Landlord
      and Tenant in writing of such determination. The determination of the
      Qualified Appraisers made in accordance with the foregoing provisions
      shall be final and binding upon the parties, such determination may be
      entered as an award in arbitration in a court of competent jurisdiction,
      and judgment thereon may be entered.

54. Facility Mortgages.

      (a) Cooperation in Obtaining Replacement Facility Mortgages. Tenant
agrees to reasonably cooperate with Landlord to assist Landlord in obtaining a
Facility Mortgage with respect to Landlord's fee interest in the Leased
Property [leasehold interest: Ponce de Leone]. Subject to the execution of a
reasonably satisfactory confidentiality agreement, and provided there is no
violation of (i) any security, health, safety, or confidentiality requirements
of any Governmental Agency or imposed by applicable law or regulations and/or
(ii) Tenant's ordinary business practices and standard resident agreements, if
any requiring Tenant to maintain the confidential nature of certain personal
information relating to individual residents living in the Facility, Tenant
agrees to provide such information as is reasonably requested by Landlord or
any proposed Facility Mortgagee with respect to Tenant, Guarantor, the
Facility or the operation of the Leased Property to facilitate in obtaining
such Facility Mortgage. Tenant agrees to allow prospective Facility Mortgagees
and their contractors and agents access to the property in connection with
their due diligence and underwriting.

      (b) Compliance With Facility Mortgages. Tenant agrees to operate the
Facility and to maintain the Facility and the Leased Property in a manner that
complies in all material respects with the terms of any Facility Mortgage,
provided the same do not conflict with the terms of this

                                      55
<PAGE>

Lease (subject to the penultimate sentence of this Paragraph 54(b)). Tenant
shall make all deliveries of information with respect to the Leased Property
available to Tenant and required under such Facility Mortgages and shall
otherwise comply with the operational requirements in such Facility Mortgages,
provided the same do not conflict with the terms of this Lease (subject to the
penultimate sentence of this Paragraph 54(b)), including, without limitation,
complying in all material respects with the insurance requirements (subject to
the proviso in the penultimate sentence of this Paragraph 54(b)) and the
financial reporting requirements. Tenant shall not have any right to approve
the terms of any Facility Mortgage, and Landlord may enter into any Facility
Mortgage as Landlord may determine in Landlord's sole and absolute discretion;
provided, however, that Landlord agrees that the business terms, provisions
and conditions contained in any Facility Mortgage (other than the Existing
Facility Mortgage) shall be commercially reasonable in the then current market
at the time that such Facility Mortgage is obtained and shall be reasonably
consistent with the then current standards for similar-type financing
transactions affecting similar types of properties (provided, however, that
with respect to assessing whether the insurance requirements under the
proposed Facility Mortgage satisfy the foregoing requirement, the standard set
forth in Paragraph 18(a)(xiv) shall govern); provided, further, that in no
event shall the terms of any Facility Mortgage increase the Base Rent payable
hereunder or alter the payment schedule for Base Rent, and Tenant agrees that
Tenant's obligation to comply with the terms of any such Facility Mortgage
shall not be deemed to be in contravention or conflict with the terms of this
Lease, even in cases where the Facility Mortgage imposes obligations that are
greater than the obligations of Tenant under this Lease. Landlord shall
deliver to Tenant drafts of all proposed new Facility Mortgage loan documents
at least fifteen (15) Business Days prior to entering into same.

      (c) Escrow Reserve Accounts Under Facility Mortgages. For purposes of
this Lease, any funds on deposit in any escrow reserve account required under
any Facility Mortgage (other than any principal reserve funds) that were
funded by Tenant in accordance with Tenant's obligations under this Lease
shall be deemed to be the property of Tenant. If during the term, any Facility
Mortgage is refinanced and the terms of the Facility Mortgage Refinancing do
not require Landlord to establish escrows at the inception thereof, then any
amounts then held in escrow reserve accounts (other than principal reserve
accounts) shall be disbursed to Tenant, and any amounts then held in principal
reserve accounts shall be disbursed to Landlord. Subject to Section 16, at the
expiration of the Term, any funds on deposit in any escrow reserve account
(other than any principal reserve account) that were funded by Tenant in
accordance with Tenant's obligations under this Lease shall be promptly
returned to Tenant.

55.   Escrows Held by Facility Mortgagee. Tenant shall be responsible for
funding the real estate tax, capital improvement reserve account, deferred
maintenance reserve account and other property-related reserve accounts under
any Facility Mortgage to the extent that such reserves are used to fund any of
Tenant's obligations under this Lease; provided, however, that Tenant shall
not in any event be required to fund deposits into any principal repayment
reserve account. Subject to the terms of the existing Facility Mortgage, and
provided no Event of Default has occurred and is continuing, Landlord shall
cooperate with Tenant to make available to Tenant for use in accordance with
the terms of the Facility Mortgage amounts held in escrow by the Facility
Mortgagee pursuant to the Existing Facility Mortgage (or any replacement
Facility Mortgagee therefor), excluding amounts on deposit in debt service
reserve funds and amounts held as tenant security deposits, for the uses
established therefor in accordance with the terms of the Facility

                                      56
<PAGE>

Mortgage (i.e., payment of taxes or insurance premiums; capital expenditures)
and which are required to be performed by Tenant under this Lease. Tenant
shall cooperate with Landlord in requesting the disbursement of such amounts
from the Facility Mortgagee in accordance with the provisions of the Facility
Mortgage, and shall promptly furnish to Landlord such documents and other
evidence requested by the Facility Mortgagee in connection therewith.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      57
<PAGE>

      IN WITNESS WHEREOF, the parties have hereunto executed this Lease the
day and year first above written.

                                    LANDLORD:
                                    --------

                                    PSLT-BLC ___________________, LLC,
                                    a Delaware limited liability company

                                    By:_______________________________
                                       Name:
                                       Title:

                                    TENANT:

                                    BLC-__________________, LLC,
                                    a Delaware limited liability company

                                    By:_______________________________
                                       Name:
                                       Title:

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

Manager hereby joins into this Property Lease Agreement for the limited
purposes set forth in Paragraph 25(b):

MANAGER:
-------

BROOKDALE PROVIDENT MANAGEMENT, LLC,
a Delaware limited liability company

By:_______________________________
   Name:
   Title:

<PAGE>

                                   EXHIBIT A

                               LEGAL DESCRIPTION

<PAGE>

                                   EXHIBIT B

                              MEMORANDUM OF LEASE

This instrument prepared by and
upon recordation return to:

__________________
__________________
__________________
__________________

______________________________________________________________________________

                              MEMORANDUM OF LEASE

      THIS MEMORANDUM OF LEASE (this "Memorandum") is made and entered into
this ___ day of ___________, 2004 by and between PSLT-BLC ________________,
LLC, a Delaware limited liability company, with an address at c/o
____________________________ ("Landlord"), and BLC-______________, LLC a
Delaware limited liability company, with an address at c/o
___________________________________________________ ("Tenant").

                               WITNESSETH THAT:

      1. Landlord and Tenant entered into a Lease (the "Lease") effective as
of the _____ day of __________________, 2004, for premises located at
_____________________________, and more particularly described in Exhibit A
attached hereto (the "Premises").

      2. The term of the Lease commences as of ________________, 2004, the
date referred to therein as the Commencement Date, and shall terminate on
_____________, 2019. The Lease contains two (2) ten (10) year renewal terms.
The Lease may be terminated earlier pursuant to the terms of the Lease.

      3. This Memorandum shall apply with respect to Landlord, Tenant and each
of their respective successors and permitted assigns. This Memorandum is not
intended to modify the terms of the Lease and in the event of any ambiguity,
the Lease shall control.

      4. Any notices required hereunder shall be directed to the parties shown
on Exhibit B attached hereto and made a part hereof for all purposes.

<PAGE>

      EXECUTED by the undersigned under seal with the intent that this
instrument be an instrument under seal as of the day, month and year first
above written.

                                         LANDLORD:
                                         --------

                                         PSLT-BLC _________________, LLC
                                         a Delaware limited liability company

___________________________________      By:____________________________
Witness                                     Name:
                                            Title:

___________________________________      [SEAL]
Witness

                                         TENANT:
                                         ------

                                         BLC-__________________, LLC
                                         a Delaware limited liability company

___________________________________      By:____________________________
Witness                                     Name:
                                            Title:

___________________________________      [SEAL]
Witness

                    [INSERT STATE SPECIFIC ACKNOWLEDGEMENT]

                                     B-2
<PAGE>

                                   EXHIBIT A
                            to Memorandum of Lease

                       Legal Description of the Premises

<PAGE>

                                   EXHIBIT B
                            to Memorandum of Lease

                                    Notices

      If to Tenant:           BLC-________________, LLC
                              c/o Brookdale Living Communities, Inc.
                              330 North Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  R. Stanley Young
                              Telephone:  (312) 977-3720
                              Facsimile: (312) 977-3699

      with a copy to:         Brookdale Living Communities, Inc.
                              330 N. Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  General Counsel
                              Telephone: (312) 977-3760
                              Facsimile: (312) 977-3769

      and to:                 Douglas E. Wambach
                              Burke, Warren, MacKay & Serritella, P.C.
                              330 North Wabash Avenue, 22nd Floor
                              Chicago, Illinois 60611
                              Telephone:  (312) 840-7019
                              Facsimile:  (312) 840-7900

      If to Lease Guarantor:  Brookdale Provident Properties, LLC
                              c/o Brookdale Living Communities, Inc.
                              330 North Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  R. Stanley Young
                              Telephone:  (312) 977-3720
                              Facsimile:  (312) 977-3699

      with a copy to:         Brookdale Living Communities, Inc.
                              330 N. Wabash Avenue
                              Suite 1400
                              Chicago, Illinois 60611
                              Attention:  General Counsel
                              Telephone:  (312) 977-3760
                              Facsimile:  (312) 977-3769

<PAGE>

      and to:                 Douglas E. Wambach
                              Burke, Warren, MacKay & Serritella, P.C.
                              330 North Wabash Avenue, 22nd Floor
                              Chicago, Illinois 60611
                              Telephone:  (312) 840-7019
                              Facsimile:  (312) 840-7900

      If to Landlord:         PSLT-BLC ____________, LLC
                              c/o Fortress Investment Group
                              1251 Avenue of the Americas
                              16th Floor
                              New York, NY 10020
                              Attention:  Darryl Copeland Jr.
                              Telephone:  (212) 798-6064
                              Facsimile:  (___) ___-____

      with a copy to:         Sidley Austin Brown & Wood LLP
                              787 Seventh Avenue
                              New York, New York 10019
                              Attention:  Robert L. Golub, Esq.
                              Telephone:  (212) 839-5326
                              Facsimile:  (212) 839-5599

                                     B-2
<PAGE>

                                   EXHIBIT C

                            Subordination Agreement
                                (See Attached)

<PAGE>

                                   EXHIBIT D

                                LEASE GUARANTY
                                --------------

                                [See Attached]

<PAGE>

                                  SCHEDULE 1

                          BASE FLOATING RATE INDEXES

Brookdale Living Communities, Inc.
Debt Listing as of March 31, 2004 (except as noted)
($ in 000's)

<TABLE>
<CAPTION>
--------------------- ----------- ----------------------------------- -------- ------------

                       3/31/04                                                    Base
   Property Name       Balance                  Lender                 Index    Floating
                         1st                                                   Rate Index
--------------------- ----------- ----------------------------------- -------- ------------

<S>                   <C>         <C>                                 <C>      <C>
Devonshire of Lisle   27,000 (1)  Tax exempt bonds - FHLMA Enhanced     BMA       1.00%
--------------------- ----------- ----------------------------------- -------- ------------

Devonshire of Lisle    6,000 (1)  Tax exempt bonds - FHLMA Enhanced     BMA       1.00%
--------------------- ----------- ----------------------------------- -------- ------------

Heritage of Des       32,000 (1)  Tax exempt bonds - FHLMA Enhanced     BMA       1.00%
Plaines
--------------------- ----------- ----------------------------------- -------- ------------

Edina Park Plaza          15,040  Tax exempt bonds - FHLMA Enhanced     BMA       1.00%
--------------------- ----------- ----------------------------------- -------- ------------

Berkshire of               4,793  LaSalle Bank                         LIBOR      1.12%
Castleton
--------------------- ----------- ----------------------------------- -------- ------------

Devonshire of         14,250 (1)  Taxable Bonds - LaSalle Bank         LIBOR      1.12%
Hoffman Estates                   Enhanced
                                                                      -------- ------------

                                                                       Prime      4.00%
--------------------- ----------- ----------------------------------- -------- ------------

Devonshire of              6,500  LaSalle Bank                         LIBOR      1.12%
Hoffman Estates (2)
                                                                      -------- ------------

                                                                       Prime      4.00%
--------------------- ----------- ----------------------------------- -------- ------------

The Willows                5,658  Bank Leumi                           LIBOR      1.12%
--------------------- ----------- ----------------------------------- -------- ------------
</TABLE>

Notes
-----

(1) Excludes amounts on deposit in the principal fund.

(2) Loan closed May 13, 2004.

<PAGE>

                                  SCHEDULE 2

                       ALLOCATED PORTIONS OF LEASE BASIS
                             (BROOKDALE PORTFOLIO)

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

        Property Name             Lease Basis Allocation
                                     ($ in thousands)
-------------------------------------------------------------

Devonshire of Lisle            $65,724
-------------------------------------------------------------

Heritage of Des Plaines        $56,771
-------------------------------------------------------------

The Hallmark                   $88,962
-------------------------------------------------------------

The Gables at Brighton         $9,179
-------------------------------------------------------------

The Springs of East Mesa       $22,256
-------------------------------------------------------------

Edina Park Plaza               $29,876
-------------------------------------------------------------

Hawthorn Lakes                 $35,559
-------------------------------------------------------------

Park Place                     $13,029
-------------------------------------------------------------

The Gables at Farmington       $33,258
-------------------------------------------------------------

The Classic at West Palm Beach $30,304
-------------------------------------------------------------

Brendenwood                    $25,902
-------------------------------------------------------------

The Kenwood at LakeView        $25,437
-------------------------------------------------------------

The Atrium of San Jose         $53,376
-------------------------------------------------------------

Chatfield                      $20,634
-------------------------------------------------------------

Ponce de Leon                  $23,262
-------------------------------------------------------------

Woodside Terrace               $63,662
-------------------------------------------------------------

River Bay Club                 $49,956
-------------------------------------------------------------

Berkshire of Castleton         $10,562
-------------------------------------------------------------

Devonshire of Hoffman Estates  $32,076
-------------------------------------------------------------

The Willows                    $9,466
-------------------------------------------------------------

Brookdale Place of San Marcos  $35,748
-------------------------------------------------------------

Total                          $735,000
-------------------------------------------------------------Exhibit 10.14

                          AGREEMENT REGARDING LEASES

                                by and between

                     BROOKDALE PROVIDENT PROPERTIES, LLC,

                     a Delaware limited liability company

                                      and

                      PSLT-BLC PROPERTIES HOLDINGS, LLC,

                     a Delaware limited liability company

                                  Dated as of

                               October 19, 2004

<PAGE>

<TABLE>
<CAPTION>
<S>   <C>
1.    Definitions..........................................................................1

2.    Lease...............................................................................11

3.    Term................................................................................12

4.    Brookdale Rent Payments.............................................................13

5.    Capital Additions...................................................................14

6.    Assignment, Subletting and Material Contracts.......................................15

7.    Default; Remedies...................................................................17

8.    Intentionally Deleted...............................................................21

9.    Financial and Other Statements......................................................21

10.   Additional Covenants of BLC Holdings................................................24

11.   Limitation on Liability.............................................................25

12.   Facility Mortgages..................................................................25

13.   Representations and Warranties......................................................29

14.   Purchase Option.....................................................................31

15.   Notices.............................................................................36

16.   No Waiver...........................................................................37

17.   Invalidity..........................................................................37

18.   Counterparts........................................................................37

19.   Cumulative..........................................................................37

20.   Governing Law.......................................................................38

21.   Successors and Assigns; Relationship................................................38

22.   Entire Agreement....................................................................38

23.   Survival............................................................................38

24.   Time................................................................................38

25.   Captions and Headings...............................................................38

                                              i
<PAGE>

26.   Waiver of Jury Trial................................................................38

27.   Guaranty............................................................................39

28.   Termination of Facility Management Agreements.......................................39

29.   Joinder by Brookdale Management.....................................................41

30.   Joinder by Brookdale Lessees........................................................41

31.   Joinder by Provident Lessors........................................................42

32.   Intentionally Deleted...............................................................42

33.   Security Deposit....................................................................42

34.   Public Offering Information.........................................................44

35.   Right of First Offer to Lease.......................................................45

36.   Special Purpose Entity Covenants of BLC Holdings....................................46
</TABLE>

                                             ii
<PAGE>

EXHIBITS:
--------

        Exhibit A     Provident Lessors
        Exhibit B     Brookdale Lessees
        Exhibit C     Facilities
        Exhibit D     Guaranty

                                       i
<PAGE>

                          AGREEMENT REGARDING LEASES
                          --------------------------

      THIS AGREEMENT REGARDING LEASES (this "Agreement") is made the 19th day
of October, 2004, by and between PSLT-BLC PROPERTIES HOLDINGS, LLC, a Delaware
limited liability company ("PSLT-BLC Holdings"), and BROOKDALE PROVIDENT
PROPERTIES, LLC, a Delaware limited liability company ("BLC Holdings"), and is
joined herein for certain limited purposes by BROOKDALE PROVIDENT MANAGEMENT,
LLC, a Delaware limited liability company ("Brookdale Management"), by the
Brookdale Lessees (as defined below), and by PROVIDENT SENIOR LIVING TRUST, a
Maryland real estate investment trust ("Provident").

                                   RECITALS
                                   --------

      A. PSLT-BLC Holdings is the owner of the beneficial interest in those
certain entities listed on Exhibit A attached hereto and made a part hereof
(each, a "Provident Lessor" and collectively referred to herein as the
"Provident Lessors").

      B. BLC Holdings is the owner of the beneficial interest in those certain
entities listed on Exhibit B attached hereto and made apart hereof (each, a
"Brookdale Lessee" and collectively referred to herein as the "Brookdale
Lessees")

      C. Each of the Provident Lessors, as lessor, has entered into a property
lease agreement dated as of the date hereof (each, a "Property Lease" and
collectively, the "Property Leases") with one of the Brookdale Lessees, as
lessee, for senior housing and/or assisted living and/or independent living
facilities as more particularly described on Exhibit C attached hereto and
made a part hereof (such facilities, including the land and any and all
improvements thereon, are referred to herein individually as a "Facility" or
collectively as the "Facilities", as the context may require).

      D. Brookdale Management has entered into exclusive management and
leasing agreements, dated as of the date hereof, with each of the Brookdale
Lessees to manage their respective Facilities (such agreements, as the same
may be amended from time to time are collectively referred to hereafter as the
"Facility Management Agreements").

      E. PSLT-BLC Holdings and BLC Holdings desire to enter into this
Agreement regarding various agreements concerning the Facilities, and, in
connection therewith, require various undertakings from Brookdale Management,
all as more particularly set forth herein.

      In consideration of the mutual promises and agreements herein contained,
the parties agree as follows:

1.    Definitions. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires, (i) the terms
defined in this paragraph shall have the meanings assigned to them in this
paragraph and elsewhere in this Agreement and include the plural as well as
the singular, (ii) all accounting terms not otherwise defined herein shall
have the meanings assigned to them in accordance with GAAP, (iii) all
references in this Agreement to

                                      1
<PAGE>

designated "paragraphs" or "subparagraphs" and other subdivisions are to the
designated paragraphs, subparagraphs and other subdivisions of this Agreement,
and (iv) the words "herein", "hereof", "hereunder" and other words of similar
import refer to this Agreement as a whole and not to any particular paragraph
or subparagraph or other subdivision.

      "Additional Debt Service Costs" shall have the meaning given to such
term in the Property Leases.

      "Affiliate" shall mean, with respect to any Person, (i) in the case of
any such Person which is a partnership, any general partner in such
partnership or any limited partner holding, directly or indirectly, fifty
percent (50%) or more of the partnership interests in such partnership; (ii)
in the case of any such Person which is a limited liability company, the
managing member of such limited liability company or any other member of such
limited liability company holding, directly or indirectly, fifty percent (50%)
or more of the membership interests in such company; (iii) any other Person
which is a Parent, a Subsidiary, or a Subsidiary of a Parent with respect to
such Person or to one or more of the Persons referred to in the preceding
clauses (i) and (ii); (iv) any other Person who is an officer, director or
trustee of, or partner holding, directly or indirectly, fifty percent (50%) or
more of the partnership, membership or stock interests in, such Person or any
Person referred to in the preceding clauses (i), (ii) and (iii); and (v) any
other Person who is a member of the Immediate Family of such Person or of any
Person referred to in the preceding clauses (i) through (iv).

      "Affiliate Transfer" shall have the meaning given to such term in
Paragraph 6(d).

      "Agreement" shall mean this Agreement including the exhibits attached
hereto, as it and they may be amended from time to time as herein provided.

      "Award" shall mean all compensation, sums or other value awarded, paid
or received by virtue of a complete or partial Condemnation of any Facility
(after deduction of all reasonable legal fees and other reasonable costs and
expenses, including, without limitation, expert witness fees, incurred in
connection with obtaining any such award).

      "Brookdale Rent Payments" shall mean the Master Rent and all other
charges, payments and sums due hereunder.

      "Brookdale Requested Refinancing" shall have the meaning set forth in
Paragraph 12.

      "Brookdale Requested Refinancing Basis" shall have the meaning set forth
in Paragraph 12.

      "Brookdale Requested Second Financing Basis" shall have the meaning set
forth in Paragraph 12.

      "Business Day" shall mean any day other than Saturday, Sunday, or any
other day on which the Federal Reserve System is authorized by law or
executive action to close.

      "Capital Addition" shall mean one or more new buildings, or one or more
additional structures annexed to any portion of the improvements with respect
to any Facility, or the

                                      2
<PAGE>

material expansion of existing improvements, which are constructed on any
parcel or portion of the Facility during the Term, including the construction
of a new wing or new story, the renovation of existing improvements on such
Facility in order to provide a functionally new facility needed to provide
services not previously offered, or any expansion, construction, renovation or
conversion in order to increase the number of units of the Facility, to change
the purpose for which such units are utilized or to improve materially the
quality of the Facility, or any related improvement whose cost would be
treated as a capital expenditure under GAAP.

      "Capital Addition Allowance" shall have the meaning given to such term
in the Property Leases.

      "Capital Additions Cost" shall mean the cost of any Capital Addition,
any Landlord Capital Addition and any Mandatory Capital Addition proposed to
be made by BLC Holdings or any Brookdale Lessee, whether paid for by any
Brookdale Lessee or Provident Lessor. Such cost shall include, but not be
limited to, the following: (i) the cost of construction of the Capital
Addition, including site preparation and improvement, materials, labor,
supervision, developer and administrative fees, legal fees, and costs of
related design, engineering and architectural services, the cost of any
fixtures, the cost of equipment and other personalty, the cost of construction
financing (including, but not limited to, capitalized interest) and other
miscellaneous costs approved by PSLT-BLC Holdings, which approval shall not be
unreasonably withheld or delayed, (ii) if agreed to by PSLT-BLC Holdings in
writing, in advance, the cost of any land (including all related acquisition
costs incurred by any Brookdale Lessee) contiguous to the Facility to which
such additional land is to become a part for the purpose of placing thereon a
Capital Addition or any portion thereof or for providing means of access
thereto, or parking facilities therefor, including the cost of surveying the
same; (iii) the cost of insurance, real estate taxes, water and sewage charges
and other carrying charges for such Capital Addition during construction; (iv)
title insurance charges; (v) reasonable attorneys' fees and expenses; (vi)
filing, registration and recording taxes and fees; (vii) documentary stamp or
transfer taxes, and (viii) all actual and reasonable costs and expenses of
PSLT-BLC Holdings and any Provident Lessor or BLC Holdings and any Brookdale
Lessee incurred in connection with such Capital Addition; provided, however,
that in no event shall the direct or indirect costs of any BLC Holdings
employees be deemed a Capital Additions Cost (other than construction
management agreements under the Facility Management Agreements that are
arms-length and have market terms).

      "Change of Control" shall mean (i) the acquisition or attainment by any
means by any Person, or two or more Persons acting in concert, of direct or
indirect beneficial ownership (within the meaning of Rule 13d-3 of the SEC) or
control of 50% or more, or rights, options or warrants to acquire 50% or more,
of the voting stock or membership interests in Guarantor, BLC Holdings or in
any of the Brookdale Lessees, or (ii) the merger or consolidation of
Guarantor, BLC Holdings, any Brookdale Lessee or any Person that directly or
indirectly owns more than 50% of the membership interests in Guarantor, BLC
Holdings or any Brookdale Lessee with or into any other Person, or (iii) any
one or more sales or conveyances to any Person of all or substantially all of
the assets of Guarantor, BLC Holdings or any Brookdale Lessee; provided,
however, that a transfer of the direct or indirect equity interests in
Fortress Registered Investment Trust, a Delaware business trust, Fortress
Brookdale Investment Fund LLC, a Delaware limited

                                      3
<PAGE>

liability company, or Health Partners, a Bermuda exempted partnership, shall
not be deemed to be a "Change of Control" for the purposes of this Agreement.

      "Code" shall mean the Internal Revenue Code of 1986 and, to the extent
applicable, the Treasury Regulations promulgated thereunder, each as from time
to time amended.

      "Commencement Date" shall mean the date of this Agreement.

      "Condemnation" shall mean, with respect to any Facility, (i) the
exercise of any governmental power, whether by legal proceedings or otherwise,
by a Condemnor of its power of condemnation; (ii) a voluntary sale or transfer
of the Facility by any Provident Lessor to any Condemnor, either under threat
of condemnation or while legal proceedings for condemnation are pending; and
(iii) a taking or voluntary conveyance of all or part of the Facility, or any
interest therein, or right accruing thereto or use thereof, as the result or
in settlement of any condemnation or other eminent domain proceeding affecting
any such Facility, whether or not the same shall have actually been commenced.

      "Condemnor" shall mean any public or quasi-public authority, or private
corporation or individual, having the power of Condemnation.

      "Current Lease Payment" shall mean the sum of the Base Rent, as defined
in each of the Property Leases, and all Additional Debt Service Costs payable
in the aggregate under all of the Property Leases, calculated based on the
prior twelve (12) month period (or such shorter period as is required
hereunder) after giving effect to the event for which the Lease Coverage Ratio
is being calculated (if applicable).

      "Default" shall mean any event or condition that, with the giving of
notice and/or lapse of time, may ripen into an Event of Default.

      "Deferred Gain" shall mean the "deferred gain" that results from the
transactions contemplated by the Stock Purchase Agreement, this Agreement and
the Property Leases, and which, for purposes of this Agreement, shall not
exceed $110,000,000.

      "Entity" shall mean any general partnership, limited partnership,
limited liability company or partnership, corporation, joint venture, trust,
business trust, cooperative or association.

      "Equity Transfer" shall have the meaning given to such term in Paragraph
6(c).

      "Event of Default" shall have the meaning given to such term in
Paragraph 7(a).

      "Existing Facility Mortgage" shall mean any Facility Mortgage
encumbering any of the Facilities on the Commencement Date.

      "Existing Guaranty" shall mean, with respect to the applicable Existing
Guaranty Facility Mortgage, the guaranty agreement (whether contained in a
separate agreement or incorporated into the body of other loan documents)
unconditionally guarantying the repayment of a portion of the indebtedness
securing the obligations under such Existing Guaranty Facility Mortgages or

                                      4
<PAGE>

a reimbursement agreement in favor of a party providing credit enhancement for
tax-exempt bond financings. Existing Guaranty shall not include any so-called
guaranties of non-recourse carve-out provisions or environmental indemnities
therein or related thereto.

      "Existing Guaranty Facility Mortgages" shall mean those Existing
Facility Mortgages encumbering the Facilities listed on Schedule I attached
hereto and made a part hereof, the obligations of which are secured by an
Existing Guaranty.

      "Existing Guaranty Facility Mortgagee" shall mean the holder, from time
to time, of an Existing Guaranty Facility Mortgage.

      "Existing Guaranty Facilities" shall mean those Facilities listed on
Schedule I attached hereto and made a part hereof.

      "Expiration Date" shall have the meaning given to such term in Paragraph
3(a).

      "Extraordinary Capital Expenditures" shall mean expenditures incurred in
connection with Capital Additions to the Facilities which are not contemplated
by the then current capital budget and other non-recurring expenditures
incurred by the Brookdale Lessees with respect to the Facilities that are not
ordinary course repair and maintenance items.

      "Facility" or "Facilities" shall have the meaning set forth in the
recitals.

      "Facility Management Agreement" shall have the meaning given to such
term in the recitals of this Agreement.

      "Facility Mortgage" shall mean, with respect to any Facility, any
encumbrance securing the repayment of indebtedness (and including any
obligations in connection with credit enhancement) now or hereafter placed
upon the fee simple interest or leasehold interest, as applicable, in such
Facility, provided such Facility is then subject to the terms of a Property
Lease, together with all other documents and instruments evidencing or
securing the indebtedness secured thereby.

      "Facility Mortgage Refinancing" shall have the meaning set forth in
Paragraph 12(a).

      "Facility Mortgagee" shall mean the holder of a Facility Mortgage.

      "Facility State" shall mean the State in which the applicable Facility
is located.

      "Fair Market Value" shall mean, as determined by agreement between
PSLT-BLC Holdings and BLC Holdings or, failing agreement and upon demand by
either party, the appraisal procedures set forth in Paragraph 14(c), the
amount that an uncompelled, willing buyer would pay, and an uncompelled,
willing seller would accept, at arm's length, for the Provident Lessors' fee
simple interest or leasehold interest, as applicable, in each of the
Facilities, including all Capital Additions and Related Personal Property (as
defined in the Property Leases) owned by the Brookdale Lessees. In addition to
such other market factors as may be applicable in determining the Fair Market
Value, the Fair Market Value shall be determined on the basis, and on the
assumptions, that, (i) the Facilities are unencumbered by the Property Leases
or this

                                      5
<PAGE>

Agreement, (ii) the Facilities are in material compliance with any and all
applicable laws, codes, ordinances and regulations and other Legal
Requirements, and (iii) the Facilities, for the benefit of the aforesaid
buyer, have in full force and effect any and all necessary or appropriate
material permits, approvals, licenses, and other consents necessary or
advisable for use thereof in accordance with its Intended Use (as defined in
the Property Leases) applicable thereto.

      "Financial Officer's Certificate" shall mean, as to any Entity, a
certificate of the chief financial officer of such Entity, duly authorized,
accompanying the financial statements required to be delivered by such Entity
pursuant to Paragraph 9 in which such officer shall certify (i) that, to such
officer's knowledge, such statements have been properly prepared in accordance
with GAAP and are true, correct and complete in all material respects and
fairly present the consolidated financial condition of such Entity at and as
of the dates thereof and the results of its and their operations for the
periods covered thereby, and (ii) that such officer has reviewed this
Agreement and, to such officer's knowledge, has no knowledge of any Event of
Default hereunder.

      "Financing Costs" shall mean all costs and expenses of obtaining any
Brookdale Requested Refinancing, including, without limitation, loan
commitment fees, letter of credit fees, reasonable attorneys' fees and
expenses (of lender, BLC Holdings and PSLT-BLC Holdings), rating agency fees,
title insurance premiums, survey costs, mortgage or documentary taxes or
stamps, and any premiums or penalties incurred in connection therewith.

      "First Offer Acceptance" shall have the meaning set forth in Paragraph
35.

      "First Offer Availability Notice" shall have the meaning set forth in
Paragraph 35.

      "First Offer Facility" shall have the meaning set forth in Paragraph 35.

      "First Renewal Notice" shall have the meaning given to such term in
Paragraph 3(b).

      "Fortress" shall have the meaning given to such term in Paragraph 6.

      "GAAP" shall mean generally accepted accounting principles, consistently
applied, and being principally derived from promulgations of The Financial
Accounting Standards Board and The American Institute of Certified Public
Accountants, or their successors.

      "Government Agency" shall mean any court, agency, authority, board
(including, without limitation, environmental protection, planning and
zoning), bureau, commission, department, office or instrumentality of any
nature whatsoever of any governmental or quasi-governmental unit of the United
States or the Facility State or any county or any political subdivision of any
of the foregoing, whether now or hereafter in existence, having jurisdiction
over PSLT-BLC Holdings, the Provident Lessors, BLC Holdings, the Brookdale
Lessees or the Facilities or any portion thereof.

      "Guarantor" shall mean the Person that is the "guarantor" under the
Guaranty. The initial Guarantor is Brookdale Living Communities, Inc., a
Delaware corporation (formerly known as BLC Senior Holdings, Inc.).

                                      6
<PAGE>

      "Guaranty" shall have the meaning given to such term in Paragraph 27.

      "Immediate Family" shall mean, with respect to any individual, such
individual's spouse, parents, brothers, sisters, children (natural or
adopted), stepchildren, grandchildren, grandparents, parents-in-law,
brothers-in-law, sisters-in-law, nephews and nieces.

      "Independent Director" shall mean a Person who is not at the time of
initial appointment, or at any time while serving as a director, and has not
been at any time during the preceding five (5) years: (a) a stockholder,
director (with the exception of serving as the Independent Director), officer,
employee, partner, member, attorney or counsel of Guarantor or any Related
Party of Guarantor; (b) a customer, supplier or other person who derives any
of its purchases or revenues from its activities with Guarantor or any Related
Party of Guarantor; (c) a Person controlling or under common control with any
such stockholder, director, officer, partner, member, customer, supplier or
other Person; or (d) a member of the Immediate Family of any such stockholder,
director, officer, employee, partner, member, customer, supplier or other
person. As used in this definition, the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of
management, policies or activities of a Person, whether through ownership of
voting securities, by contract or otherwise.

      "Initial Term" shall have the meaning given to such term in Paragraph
3(a).

      "Inspector" shall have the meaning given to such term in Paragraph 34.

      "Landlord Capital Addition" shall have the meaning given to such term in
the Property Leases.

      "Lease Coverage Ratio" shall mean the ratio of NOI to the Current Lease
Payment for the applicable period.

      "Lease Year" shall mean each twelve month period commencing on January
1st during the Term, provided that the first Lease Year shall be the period of
time from the Commencement Date through December 31, 2005.

      "Legal Requirements" shall mean all federal, state, county, municipal
and other governmental statutes, laws, rules, orders, regulations, ordinances,
judgments, decrees and injunctions affecting the Facilities or the
maintenance, construction, alteration or operation thereof, whether now or
hereafter enacted or in existence, including, without limitation, (a) all
permits, licenses, certificates of need, authorizations and regulations
necessary to operate the applicable Facility for its intended use (as provided
in the applicable Property Lease), and (b) all requirements of any Third Party
Payor Programs.

      "Letter of Credit" shall have the meaning given to such term in
Paragraph 33(a).

      "Management Termination Event" shall have the meaning set forth in
Paragraph 28(a).

      "Mandatory Capital Addition" shall have the meaning given to such term
in Paragraph 5.

                                      7
<PAGE>

      "Mandatory Capital Addition Allowance" and "Mandatory Capital Addition
Allowances" shall have the meaning given to such term in Paragraph 5.

      "Master Rent" shall mean an amount equal to (i) the aggregate Base Rent
(as defined in the Property Leases) and all Additional Rent (as defined in the
Property Leases), charges and other amounts payable under each of the Property
Leases per month of the Term, less (ii) the amount of Base Rent, Additional
Rent, charges and other amounts due and payable under the Property Leases for
such month of the Term that was actually paid by the Brookdale Lessees, Lease
Guarantor (as defined in the Property Leases) or Guarantor to the Provident
Lessors (or offset against rent paid to applicable Facility Mortgagees or any
ground lessor under any applicable ground lease in accordance with the terms
of the Property Leases).

      "Minimum Option Purchase Price" shall mean, at any time, the sum of the
Lease Basis (as defined in the applicable Property Lease) for each of the
Facilities, each as increased on January 1st of each Lease Year (with the
first such increase occurring on January 1, 2006) by four and one-half percent
(4.5%), compounded annually (pro rata for any partial Lease Year), from the
Commencement Date (or, with respect to any portion of the Lease Basis that
exists as a result of a Capital Accretion Amount (as defined in the applicable
Property Lease), the date the applicable Capital Accretion Amount is incurred)
through the date of purchase by BLC Holdings (without giving credit in any
such calculations to any Base Rent theretofore paid under the Property
Leases).

      "Net Worth" shall mean, with respect to any Person (other than
Guarantor), the difference between (i) the assets of such Person minus (ii)
the liabilities of such Person, all determined in accordance with GAAP, and
with respect to Guarantor, shall mean the sum of (A) the Deferred Gain plus
(B) the difference between the assets of Guarantor minus the liabilities of
Guarantor, all determined in accordance with GAAP.

      "NOI" shall mean Total Revenues less Operating Expenses for the prior
twelve (12) full calendar months.

      "Notice" shall mean a notice given or received in accordance with
Paragraph 15.

      "Officer's Certificate" shall mean a certificate signed by an officer of
BLC Holdings or Guarantor, as applicable, duly authorized by the [board of
directors/managing member/members] of BLC Holdings or Guarantor, as
applicable.

      "Operating Expenses" shall mean, for the applicable period, all expenses
in the aggregate, for all of the Facilities (determined on an accrual basis in
accordance with GAAP), incurred by any of the Brookdale Lessees or any Related
Party of any of them in connection with the operation of the Facilities or any
use of the Facilities on a pro forma basis for the period in question,
including a 5% management fee and an annual capital reserve equal to $450 per
residential unit, and including, with respect to the Facility known as Ponce
de Leon, Ground Rents (as defined in the Property Lease relating to Ponce de
Leon), provided, however, that the Current Lease Payment payable under the
Property Leases shall not be included as an Operating Expense for purposes
hereof.

      "Option Closing" shall have the meaning given to such term in Paragraph
14(b).

                                      8
<PAGE>

      "Option Closing Date" shall have the meaning given to such term in
Paragraph 14(a).

      "Outside Closing Date" shall have the meaning given to such term in
Paragraph 14(a).

      "Overdue Rate" shall mean, on any date, a per annum rate of interest
equal to the lesser of ten percent (10%) and the maximum rate then permitted
under applicable law, calculated from the date any payment obligation is due
(except with respect to payments which are indeterminable prior to Notice from
PSLT-BLC Holdings, in which event the Overdue Rate shall be calculated from
the tenth (10th) day following the date such Notice was received).

      "Ownership Interests" shall have the meaning given to such term in
Paragraph 14.

      "Parent" shall mean, with respect to any Person, any Person which owns
directly, or indirectly through one or more Related Parties, fifty percent
(50%) or more of the voting or beneficial interest in such Person, or
otherwise has the right or power (whether by contract, through ownership of
securities or otherwise) to control such Person.

      "Permitted Investments" shall mean United States Treasury securities,
bank certificates of deposit issued by banks rated at least A by Standard &
Poor's and other debt instruments rated at least A by Standard & Poor's and
having maturities not longer than one (1) year, or investments otherwise
approved by PSLT-BLC Holdings.

      "Permitted Management Incentive Program" shall mean the equity incentive
plan for management of Guarantor as contemplated on the date of this
Agreement, pursuant to which not more than ten percent (10%) of the interests
in Guarantor shall be transferred (directly or indirectly).

      "Permitted Transfer" shall have the meaning given to such term in
Paragraph 6(b).

      "Person" shall mean any individual or Entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of such Person
where the context so requires.

      "Property Lease" or "Property Leases" shall have the meaning given such
term in the recitals hereto, as the same may be amended from time to time,
subject to the terms of Paragraph 2 hereof.

      "Proposed Financing Terms" shall have the meaning given to such term in
Paragraph 12(b).

      "Provident" shall have the meaning given such term in the recitals
hereto.

      "Provident Lessors" shall have the meaning given such term in the
recitals hereto.

      "Purchase Notice" shall have the meaning set forth in Paragraph 14(a).

      "Purchase Option" shall have the meaning set forth in Paragraph 14(a).

      "Qualified Appraiser" shall have the meaning set forth in Paragraph
14(c).

                                      9
<PAGE>

      "Refinancing Notice" shall have the meaning set forth in Paragraph 12.

      "Related Party" shall mean, with respect to any Person, (i) in the case
of any such Person which is a partnership, any general partner in such
partnership or any limited partner holding, directly or indirectly, ten
percent (10%) or more of the partnership interests in such partnership; (ii)
in the case of any such Person which is a limited liability company, the
managing member of such limited liability company or any other member of such
limited liability company holding, directly or indirectly, ten percent (10%)
or more of the membership interests in such company; (iii) any other Person
which is a Parent, a Subsidiary, or a Subsidiary of a Parent with respect to
such Person or to one or more of the Persons referred to in the preceding
clauses (i) and (ii); (iv) any other Person who is an officer, director or
trustee of, or partner holding, directly or indirectly, ten percent (10%) or
more of the partnership, membership or stock interests in, such Person or any
Person referred to in the preceding clauses (i), (ii) and (iii); and (v) any
other Person who is a member of the Immediate Family of such Person or of any
Person referred to in the preceding clauses (i) through (iv).

      "Renewal Determination Notice" shall have the meaning given such term in
Paragraph 3(b).

      "Renewal Term" shall have the meaning given such term in Paragraph 3(b).

      "Right of First Offer" shall have the meaning given to such term on
Paragraph 35.

      "SEC" shall mean the Securities and Exchange Commission.

      "Security Amount" shall mean $20,000,000, as the same may be reduced
pursuant to Paragraph 33(c) and Paragraph 10(b).

      "Security Deposit" shall have the meaning set forth in Paragraph 33(a).

      "Special Purpose Entity" shall have the meaning given to such term in
Paragraph 36(b).

      "Stock Purchase Agreement" shall mean that certain Stock Purchase
Agreement dated as of June 18, 2004, by and among Fortress, as seller,
Provident, as acquiror, and BLC Senior Holdings, Inc., as indemnitor, as
amended by that certain Amendment No. 1 to Stock Purchase Agreement dated as
of August 2, 2004, by and among Fortress, Provident and BLC Senior Holdings,
Inc.

      "Subsidiary" shall mean, with respect to any Person, any Entity (a) in
which such Person owns directly, or indirectly through one or more
Subsidiaries, fifty percent (50%) or more of the voting or beneficial
interest, or (b) which such Person otherwise has the right or power to control
(whether by contract, through ownership of securities or otherwise).

      "Successor Guarantor" shall have the meaning given to such term in
Paragraph 6(b).

      "Term" shall mean, collectively, the Initial Term and each Renewal Term,
to the extent properly exercised pursuant to the provisions of Paragraph 3,
unless sooner terminated pursuant to the provisions of this Agreement.

                                      10
<PAGE>

      "Third Party Payor Programs" shall mean all third party payor programs
in which any Brookdale Lessee presently or in the future may participate,
including, without limitation, Medicare, Medicaid, CHAMPUS, Blue Cross and/or
Blue Shield, Managed Care Plans, other private insurance programs and employee
assistance programs.

      "Third Party Payors" shall mean Medicare, Medicaid, CHAMPUS, Blue Cross
and/or Blue Shield, private insurers and any other Person which presently or
in the future maintains Third Party Payor Programs.

      "Total Revenues" shall mean, for the period in question, all revenues in
the aggregate for all of the Facilities (determined on an accrual basis in
accordance with GAAP) received by the Brookdale Lessees or any Affiliate of
any of them (without duplication) from the operation of the Facilities or any
other use of the Facilities, or any portion thereof, including, without
limitation, all resident rents and revenues received or receivable for the use
of or otherwise by reason of all units, beds and other facilities provided,
meals served, services performed, space or facilities subleased or goods sold
on the Facilities, including, without limitation, and except as provided
below, any other arrangements with third parties relating to the possession or
use of the Facilities; provided, however, that Total Revenues shall not
include: (i) allowances according to GAAP for uncollectible accounts,
including credit accounts and charity care and other administrative discounts
(other than allowance for uncollectible accounts related to Third Party Payor
reimbursements properly submitted, which shall be deducted in determining
Total Revenues), (ii) revenue from professional fees or charges by physicians
and unaffiliated providers of services, when and to the extent such charges
are paid over to such physicians or unaffiliated providers of services, or are
separately billed and not included in comprehensive fees; (iii) non-operating
revenues such as interest income or income from the sale of assets not sold in
the ordinary course of business; (iv) revenues attributable to services
actually provided off-site or otherwise away from a Facility, such as home
health care, to persons that are not residents of a Facility; (v) security
deposits of residents of a Facility; (vi) proceeds of any insurance coverage
other than Third Party Payor Programs and rent loss or business interruption
coverage; and (vii) any Award from any Condemnation.

      "Wrongful Distribution" shall mean, in the event that Brookdale Rent
Payments are due and owing and have not been made as required hereunder, the
distribution of all or any portion of Total Revenues by BLC Holdings or any
Brookdale Lessee to the Parent of BLC Holdings or any Affiliate (other than
BLC Holdings) thereof that results in inadequate monies being available to
make the Brookdale Rent Payments to the extent of any such shortfall on a
cumulative basis (it being the intent of the parties that no such distribution
to BLC Holdings' Parent or any Related Party thereto (other than to BLC
Holdings, PSLT-BLC Holdings or PSLT-BLC Holdings' Affiliates) should be made
unless all Brookdale Rent Payments due hereunder are current).

2.    Lease.

      PSLT-BLC Holdings hereby grants to BLC Holdings certain rights contained
herein relating to the Property Leases and BLC Holdings hereby grants to
PSLT-BLC Holdings certain rights contained herein relating to the Property
Leases, all as more particularly set forth herein. The parties hereto agree
and acknowledge that in the event of a termination of any Property

                                      11
<PAGE>

Lease pursuant to the terms and conditions of the applicable Property Lease,
from and after the effective date of such termination, (a) such Property Lease
shall no longer be deemed to be a "Property Lease" for purposes of this
Agreement, (b) the applicable Facility shall no longer be deemed to be a
"Facility" for purposes of this Agreement, and (c) the Master Rent payable
hereunder shall be adjusted by excluding from the calculation of Master Rent
hereunder the amount of Base Rent (as defined in the applicable Property
Lease) due under any such terminated Property Lease.

3.    Term.

      (a) Term. Subject to BLC Holdings' right to renew this Agreement and the
Property Leases as set forth below, the initial term of this Agreement shall
be coterminous with the term of each of the Property Leases, it being
acknowledged that the initial term of each of the Property Leases expires at
midnight December 31, 2019 (the "Expiration Date"), unless modified or earlier
terminated pursuant to the terms of this Agreement or the Property Leases
("Initial Term").

      (b) Renewal Terms. Provided (i) there is not an existing and continuing
Event of Default under this Agreement or under any of the Property Leases
either on the date that BLC Holdings exercises the applicable Renewal Term or
on the commencement date thereof, (ii) there is not an existing and continuing
Management Termination Event under this Agreement either on the date that BLC
Holdings exercises the applicable Renewal Term or on the commencement date
thereof, (iii) Guarantor shall deliver to PSLT-BLC Holdings an affirmation of
the Guaranty, and (iv) Lease Guarantor (as defined in the Property Leases)
shall deliver to PSLT-BLC Holdings affirmations of each Lease Guaranty (as
defined in the Property Leases) with respect to each of the Property Leases,
BLC Holdings, acting on behalf of each of the Brookdale Lessees, shall have
the option to renew all, but not less than all, of the Property Leases for two
(2) additional ten (10) year periods in accordance with the terms of the
Property Leases (each, a "Renewal Term", and collectively, the "Renewal
Terms"); provided, however, that the second ten (10) year renewal option shall
be additionally conditioned upon BLC Holdings having exercised the first ten
(10) year renewal option with respect to all, but not less than all of the
Property Leases. If BLC Holdings desires to exercise its option under this
Paragraph 3(b) to renew all of the Property Leases, BLC Holdings shall deliver
to PSLT-BLC Holdings written Notice (the "First Renewal Notice") not less than
one (1) year prior to the expiration of the Initial Term or the initial
Renewal Term, as applicable, requesting that PSLT-BLC Holdings deliver to BLC
Holdings written Notice (the "Renewal Determination Notice") setting forth
PSLT-BLC Holdings' determination of the Lease Basis and the Lease Rate (each
such term as defined in the Property Leases) with respect to each of the
Facilities to be used in the calculation of Base Rent (as defined in the
Property Leases) during the applicable Renewal Term. Within fifteen (15) days
after the receipt by PSLT-BLC Holdings of the First Renewal Notice, PSLT-BLC
Holdings shall deliver to BLC Holdings the Renewal Determination Notice, and,
within fifteen (15) days after delivery by PSLT-BLC Holdings to BLC Holdings
of the Renewal Determination Notice, BLC Holdings shall, by written notice to
PSLT-BLC Holdings, either (x) decline to extend the Property Leases and this
Agreement for the applicable Renewal Term, in which event, BLC Holdings shall
have no further renewal rights pursuant to this Paragraph 3(b), (y)(i) agree
with PSLT-BLC Holdings' determination of the Lease Basis and the Lease Rate
with respect to all of the Facilities as set forth in the Renewal
Determination Notice and (ii) extend the Term of the

                                      12
<PAGE>

Property Leases and this Agreement using the Lease Basis and Lease Rate for
each of the Facilities as set forth in the Renewal Determination Letter for
purposes of determining the Base Rent payable under the Property Leases for
the applicable Renewal Term, or (z) disagree with one (1) or more
determinations of Lease Basis and/or Lease Rate as set forth in the Renewal
Determination Notice and appoint a Qualified Appraiser (as defined in the
Property Leases), in which event, BLC Holdings shall be deemed to have
initiated the appraisal procedures set forth in Paragraph 53 of the Property
Leases with respect to the applicable Facility(ies). If BLC Holdings exercises
its option pursuant to clause (z) of the immediately preceding sentence, BLC
Holdings shall either accept or reject, at its sole option, the determination
of the Lease Basis and Lease Rate for each of the Facilities either as set
forth in the Renewal Determination Notice or as determined in accordance with
Paragraph 53 of the Property Leases, as the case may be, not later than two
hundred forty (240) days prior to the expiration of the Initial Term or the
expiration of the initial Renewal Term, as applicable, by written Notice to
PSLT-BLC Holdings, which Notice shall constitute BLC Holdings' irrevocable
election hereunder to (A) extend the Term of the Property Leases and this
Agreement for the applicable Renewal Term using the Lease Basis and Lease Rate
for each of the Facilities determined in accordance with the terms of this
Paragraph, or (B) decline to extend the Property Leases and this Agreement for
the applicable Renewal Term; provided, however, that if the appraisal
procedures with respect to the applicable Facility(ies) are continuing in good
faith between the parties, but the parties have not yet determined the Base
Rent for all of the Facilities for the applicable Renewal Term, then BLC
Holdings shall have an additional thirty (30) days to make its decision;
provided, further, that in any event, BLC Holdings must make its election
whether or not to extend the Property Leases and this Agreement not later than
two hundred ten (210) days prior to the expiration of the Initial Term or the
expiration of the initial Renewal Term, as applicable, based upon either the
Lease Basis and Lease Rate set forth in the Renewal Determination Notice or
the results of the appraisal procedures that have been completed as of such
date. Upon the renewal of the Property Leases by BLC Holdings as provided in
this Paragraph 3(b), this Agreement shall automatically, and without any
action by any Person, be deemed to have been extended for the same term. In
the event of such exercise, (1) PSLT-BLC Holdings and BLC Holdings shall enter
into such confirmatory documents as may be necessary to effect such renewal of
this Agreement, and (2) PSLT-BLC Holdings and BLC Holdings shall cause and
direct the Provident Lessors and the Brookdale Lessees, respectively, to enter
into such confirmatory documents as may be necessary to effect such renewals.
Time shall be of the essence with respect to the giving of notices under this
Paragraph 3(b).

4.    Brookdale Rent Payments.

      (a) Brookdale Rent Payments. BLC Holdings shall pay and contribute to
the applicable Brookdale Lessee(s) and cause such Brookdale Lessee(s) to pay
to the applicable Provident Lessor(s), in lawful money of the United States of
America which shall be legal tender for the payment of public and private
debts, without offset, abatement, demand or deduction, the portion(s) of the
Brookdale Rent Payments that are allocable to the applicable Property Lease(s)
required hereunder during the Term, except as hereinafter expressly provided.
Payments for any partial month shall be prorated on a per diem basis based on
a 360 day year and twelve (12) thirty (30) day months.

                                      13
<PAGE>

      (b) Master Rent. The Master Rent shall be paid in arrears on the first
(1st) day of each calendar month for the immediately preceding month.

      (c) Overdue Interest. If BLC Holdings fails to pay and contribute any
Brookdale Rent Payment to the applicable Brookdale Lessee(s) and to cause such
funds to be paid by the applicable Brookdale Lessee(s) to the applicable
Provident Lessor(s) on or before the date such payment is due and payable and
such amount remains unpaid for a period of five (5) Business Days, such past
due payment shall bear interest at the Overdue Rate; provided, however, that
with respect to any other sums or amounts to be paid and contributed by BLC
Holdings hereunder, the Overdue Rate shall apply if such amounts remain unpaid
for a period of five (5) Business Days after Notice thereof from PSLT-BLC
Holdings is received by BLC Holdings (calculated from the date of such
receipt). The amount of any interest due under this Paragraph 4(c) shall not
be diminished by BLC Holdings' making a partial payment, except in such
circumstances where BLC Holdings provides evidence reasonably satisfactory to
PSLT-BLC Holdings that the payment rendered was intended as a full payment,
and that the shortfall was due to a good faith mistake. Notwithstanding
anything to the contrary contained in this Paragraph 4(c), in no event shall
BLC Holdings have any obligation to pay interest to PSLT-BLC Holdings on any
overdue amounts (including, without limitation, on the Master Rent) to the
extent any Brookdale Lessee has paid interest on such overdue amount under the
applicable Property Lease, and, to the extent PSLT-BLC Holdings and any
Provident Lessor each collect interest on the same overdue amount, PSLT-BLC
Holdings shall promptly refund such interest payment to BLC Holdings.

      (d) Payment Without Abatement. No abatement, diminution or reduction of
any payments required to be made by BLC Holdings hereunder shall be allowed to
BLC Holdings or any person claiming under BLC Holdings, under any
circumstances or for any reason whatsoever, except to the extent expressly
herein provided or to the extent expressly provided in the Property Leases.

5.    Capital Additions.

      (a) Mandatory Capital Addition Allowances. PSLT-BLC Holdings agrees to
make available, in its reasonable discretion, to BLC Holdings, from time to
time, as hereinafter provided, the aggregate amount of up to Five Million
Dollars ($5,000,000) for the purpose of funding the following Capital
Additions to the Facilities: (i) if PSLT-BLC Holdings and BLC Holdings
mutually agree in their reasonable discretion that a Capital Addition is
necessary for the applicable Facility to be in compliance with Legal
Requirements, subject to the right of BLC Holdings or the applicable Brookdale
Lessee to contest the applicable Legal Requirement pursuant to Paragraph 26 of
the applicable Property Lease (including, without limitation, by reason of
compliance of the applicable Facility with such Legal Requirement pursuant to
a grandfather clause), or (ii) if PSLT-BLC Holdings, BLC Holdings and
Brookdale Management mutually agree in their reasonable discretion in writing
that the cost of a Capital Addition proposed by BLC Holdings would constitute
an Extraordinary Capital Expenditure (any such Capital Addition described in
clause (i) or (ii) above is herein referred to as a "Mandatory Capital
Addition", and any portion of the $5,000,000 disbursed in PSLT-BLC Holdings'
reasonable discretion in connection with any such Mandatory Capital Addition
is herein referred to as a "Mandatory Capital Addition Allowance" and
collectively, the "Mandatory Capital

                                      14
<PAGE>

Addition Allowances"). Notwithstanding the foregoing, if an Event of Default
arises under the applicable Property Lease (as defined thereunder) as a result
of the failure by BLC Holdings or the applicable Brookdale Lessee to make any
Mandatory Capital Addition described in clause (i) of the immediately
preceding sentence, then PSLT-BLC Holdings and the applicable Provident Lessor
shall have all rights and remedies available to such party under this
Agreement or the applicable Property Lease, as applicable, to perform such
work. BLC Holdings agrees that, in connection with any Mandatory Capital
Addition Allowance, BLC Holdings shall, or shall cause the applicable
Brookdale Lessee to, provide PSLT-BLC Holdings or the applicable Provident
Lessor with the information required to be provided pursuant to Paragraph
11(c) of the Property Leases relating to Landlord Capital Additions. The
provisions of Paragraph 11(d) of the Property Leases shall govern the
disbursement of Mandatory Capital Addition Allowances, provided that PSLT-BLC
Holdings shall have no obligation to make any Mandatory Capital Addition
Allowance pursuant to this Paragraph 5(a) if, at the time of a disbursement of
any Mandatory Capital Addition Allowance, an Event of Default shall have
occurred and is continuing.

      (b) Mandatory Capital Addition Allowances Added to Lease Basis. All
Mandatory Capital Addition Allowances made by PSLT-BLC Holdings pursuant to
this Paragraph 5 shall be added to the Lease Basis under the related Property
Lease for the applicable Facility such that the Base Rent under such Property
Lease shall be adjusted in accordance with its terms (each such term as
defined in the Property Lease).

      (c) Joinder by Provident. Provident hereby joins into this Agreement for
the limited purposes set forth in this Paragraph 5 to acknowledge and agree
that Provident shall make available to PSLT-BLC Holdings during the Term the
aggregate amount of up to $5,000,000 for the purpose of financing Mandatory
Capital Additions in accordance with the terms and conditions of Paragraph
5(a) above.

6.    Assignment, Subletting and Material Contracts.

      (a) Transfers Prohibited Without Consent. BLC Holdings shall not,
without the prior written consent of PSLT-BLC Holdings, which consent may be
withheld in PSLT-BLC Holdings' sole and absolute discretion, in each instance,
sell, assign, pledge, hypothecate or otherwise transfer its ownership interest
in any Brookdale Lessee, in whole or in part, or any rights or interest which
BLC Holdings may have under this Agreement. For the purposes of this Paragraph
6, except to the extent expressly permitted pursuant to this Paragraph 6, a
Change of Control shall be deemed to constitute a prohibited sale of an
ownership interest in each of the Brookdale Lessees. If Guarantor pledges all
or any portion of the equity interests in BLC Holdings, and if the holder of
such pledge forecloses on its security interest in such equity interests, then
the Person (including such pledgee) that acquires such pledged equity
interests at foreclosure or otherwise and the circumstances of such transfer
must comply with the provisions of this Paragraph 6. If given, the consent of
PSLT-BLC Holdings to any such transfer shall in no event be construed to
relieve BLC Holdings or such transferee from the obligation of obtaining the
express consent in writing of PSLT-BLC Holdings to any further transfer. Any
assignment or transfer in violation of this Paragraph 6(a) shall be voidable
at PSLT-BLC Holdings' option.

                                      15
<PAGE>

      (b) Permitted Transfers. Notwithstanding anything to the contrary
contained herein, and subject to the terms of any Facility Mortgage, PSLT-BLC
Holdings shall have the right to consent, such consent not to be unreasonably
withheld, conditioned or delayed, to any of the following (each, a "Permitted
Transfer"): (i) a sale of fifty percent (50%) or more of the outstanding
shares of stock in Guarantor (in the aggregate, including any prior sales of
stock), but excluding any Permitted Management Incentive Program from such
calculation, (ii) a sale by Guarantor of all or substantially all of its
assets, or (iii) a sale of fifty percent (50%) or more of the membership
interests in Fortress Brookdale Acquisition LLC ("Fortress"), but excluding
any Permitted Management Incentive Program, provided that, PSLT-BLC Holdings'
consent shall not be required with respect to any of the foregoing if: (A) BLC
Holdings provides PSLT-BLC Holdings written Notice of such proposed Permitted
Transfer not less than thirty (30) days prior to the effective date thereof,
together with evidence reasonably satisfactory to PSLT-BLC Holdings of
compliance with clause (B) below, (B) BLC Holdings furnishes evidence
reasonably satisfactory to PSLT-BLC Holdings that the industry experience in
owning, operating and managing senior living facilities similar to the
Facilities (as determined by PSLT-BLC Holdings) of the senior management of
Guarantor or the Successor Guarantor, after giving effect to such transfer, is
at least comparable to or better than that of Guarantor, (C) BLC Holdings
furnishes evidence to PSLT-BLC Holdings that the Net Worth of Guarantor or any
successor entity proposed to be delivering a guaranty of this Agreement
following any such Permitted Transfer (the "Successor Guarantor") shall be at
least equal to Seventy Five Million Dollars ($75,000,000), (D) BLC Holdings
furnishes evidence to PSLT-BLC Holdings that Guarantor or the Successor
Guarantor, as the case may be, shall continue to own all of the membership
interests in BLC Holdings, (E) BLC Holdings furnishes evidence to PSLT-BLC
Holdings that BLC Holdings shall continue to be a Special Purpose Entity and
shall continue to own all of the membership interests in each of the Brookdale
Lessees, and (F) Guarantor or the Successor Guarantor, as the case may be,
shall execute and deliver to PSLT-BLC Holdings (1) in the case of a Permitted
Transfer described in clause (i) above, an affirmation of the Guaranty in form
and substance reasonably satisfactory to PSLT-BLC Holdings, or (2) in the case
of a Permitted Transfer described in clauses (ii) and (iii) above, a new
guaranty of this Agreement in form and substance identical to the Guaranty.

      (c) Equity Transfers. Notwithstanding anything to the contrary contained
herein, PSLT-BLC Holdings' consent shall not be required in connection with
any of the following (each, an "Equity Transfer"): (i) an initial public
offering of Guarantor or similar equity sale transaction targeted to raise
equity capital for Guarantor, or (ii) any direct or indirect transfer of less
than fifty percent (50%) of the ownership interest in (x) Guarantor or (y)
Fortress, excluding any Permitted Management Incentive Program from such
calculation, provided that, in the case of an Equity Transfer contemplated by
clause (ii), the current equity holders of Guarantor or Fortress, as the case
may be, which control Guarantor or Fortress, as the case may be, as of the
date hereof continue to control Guarantor or Fortress, as the case may be,
following any such Equity Transfer.

      (d) Affiliate Transfer. Notwithstanding anything to the contrary
contained herein, PSLT-BLC Holdings' consent shall not be required in
connection with the transfer (an "Affiliate Transfer") by Guarantor of its
interest in BLC Holdings to a Subsidiary at least fifty one percent (51%)
owned by Guarantor, provided that (i) BLC Holdings provides PSLT-BLC Holdings
at least thirty (30) days' prior written Notice of such Affiliate Transfer,
(ii) BLC Holdings will

                                      16
<PAGE>

continue to be a Special Purpose Entity throughout the Term of this Agreement
and the Term of the Property Leases, and (iv) Guarantor delivers an
affirmation of the Guaranty.

7. Default; Remedies.

      (a) Default. Upon the occurrence of any Event of Default (defined
below), BLC Holdings shall have the affirmative obligation to notify PSLT-BLC
Holdings as soon as it knows of any such event. The occurrence of any of the
following events shall constitute an "Event of Default" under this Agreement,
and in connection therewith, PSLT-BLC Holdings shall have the right to
exercise any rights or remedies available in this Agreement, at law or in
equity:

            (i) Any default by any of the Brookdale Lessees under the terms of
their respective Property Leases with the Provident Lessors, and the
continuation of such default beyond any applicable notice and cure period
therefor;

            (ii) BLC Holdings' failure to pay and contribute to the applicable
Brookdale Lessee(s) and to cause such applicable Brookdale Lessee(s) to remit
such sums to the applicable Provident Lessor(s), when due hereunder, any of
the Brookdale Rent Payments (whether due to a Wrongful Distribution or
otherwise) and such failure is not cured within five (5) Business Days;

            (iii) BLC Holdings' failure to perform any other of the terms,
covenants or conditions contained in this Agreement if not remedied within
thirty (30) days after receipt of Notice thereof, or, if such default cannot
reasonably be remedied within such period, BLC Holdings does not within thirty
(30) days after Notice thereof commence such act or acts as shall be necessary
to remedy the default and shall not thereafter diligently complete such act or
acts within a reasonable time, provided, however, in no event shall such cure
period extend beyond one hundred eighty (180) days after Notice thereof;

            (iv) if (w) BLC Holdings or Guarantor becomes bankrupt or
insolvent, or files any debtor proceedings, or files pursuant to any statute a
petition in bankruptcy or insolvency or for reorganization, or files a
petition for the appointment of a receiver or trustee for all or substantially
all of its assets, or (x) any of the foregoing are filed against BLC Holdings
or Guarantor and such petition or appointment shall not have been set aside
within ninety (90) days from the date of such petition or appointment, or (y)
BLC Holdings or Guarantor makes an assignment for the benefit of creditors or
shall admit in writing its inability to pay its debts generally as they become
due, or (z) BLC Holdings' or Guarantor's interest in all or portion of the
Total Revenues is attached, levied upon, seized or made subject to any other
judicial seizure and such seizure or attachment is not discharged within
ninety (90) days;

            (v) if either of BLC Holdings or Guarantor is liquidated or
dissolved, or begins proceedings toward such liquidation or dissolution, or in
any manner permits the sale or divestiture of substantially all of its assets;

            (vi) a default occurs under Paragraph 6;

            (vii) Intentionally Omitted;

                                      17
<PAGE>

            (viii) if any material representation or warranty made by or on
behalf of BLC Holdings under this Agreement shall prove to be false or
misleading in any material respect on the date when made and the same has a
material adverse affect on the financial condition of BLC Holdings or BLC
Holdings' ability to perform under this Agreement or the Lease Guaranty (as
defined in the Property Leases);

            (ix) if any material representation or warranty made by or on
behalf of Guarantor under the Guaranty shall prove to have been false or
misleading in any material respect on the date when made and the same has a
material adverse affect on the financial condition of Guarantor or Guarantor's
ability to perform under the Guaranty;

            (x) Intentionally Omitted;

            (xi) the issuance or entry against Guarantor of any final,
unappealable award or judgment (after any applicable appeal periods have
expired) in an amount of Five Million Dollars ($5,000,000.00) or more, and
such award or judgment shall continue unsatisfied and in effect for a period
of ten (10) consecutive days without BLC Holdings demonstrating, to PSLT-ALS
Holdings' reasonable satisfaction, that an insurance policy exists that would
cover such award or judgment;

            (xii) if the Net Worth of Guarantor declines below Seventy Five
Million Dollars ($75,000,000); provided, however, that BLC Holdings shall have
the right to cure such Event of Default by depositing and maintaining with
PSLT-BLC Holdings cash or a Letter of Credit in the amounts set forth below
(which cash or Letter of Credit shall be in addition to the amounts required
to be maintained hereunder pursuant to Paragraph 33 hereof) as security for
the performance and observance by BLC Holdings of the terms, conditions and
provisions of this Agreement, and which may be drawn upon or applied, as the
case may be, in accordance with the provisions of Paragraph 33(a) hereof:

                  (A) in an amount equal to one (1) month of Current Lease
                  Payments if Guarantor's Net Worth is less than $75,000,000
                  but is equal to or greater than $50,000,000 (the
                  "$50,000,000 Threshold")

                  (B) in an amount equal to three (3) months of Current Lease
                  Payments if Guarantor's Net Worth is less than $50,000,000
                  but is equal to or greater than $25,000,000 (the
                  "$25,000,000 Threshold"); and

                  (C) in an amount equal to six (6) months of Current Lease
                  Payments if Guarantor's Net Worth is less than $25,000,000
                  but is equal to an amount greater than $0, it being intended
                  that if Guarantor's Net Worth is equal to, or declines
                  below, $0, then BLC Holdings shall have no further cure
                  rights under this Paragraph, and an Event of Default shall
                  be deemed to have occurred;

            If BLC Holdings maintains a Net Worth at least equal to the
$25,000,000 Threshold for two (2) consecutive calendar quarters, then the cash
or the Letter of Credit, as applicable, deposited under this Paragraph, in an
amount equal to three (3) months of Current Lease Payments (or any portion
thereof remaining) shall be returned to BLC Holdings. If BLC

                                      18
<PAGE>

Holdings maintains a Net Worth at least equal to the $50,000,000 Threshold for
two (2) consecutive calendar quarters, then the cash or the Letter of Credit,
as applicable, deposited under this Paragraph, in an amount equal to two (2)
months of Current Lease Payments (or the unapplied portion thereof) shall be
returned to BLC Holdings. If BLC Holdings maintains a Net Worth of at least
$75,000,000 for two (2) consecutive calendar quarters, then the cash or the
Letter of Credit, as applicable, deposited under this Paragraph, in an amount
equal to one (1) month of Current Lease Payments (or the unapplied portion
thereof) shall be returned to BLC Holdings. If BLC Holdings fails to maintain
any of the thresholds with respect to Net Worth as described in the
immediately preceding sentences, then PSLT-BLC Holdings shall be entitled to
retain the cash or Letter of Credit deposited under this Paragraph 7(a)(xii)
until the end of the Term hereof, and, upon BLC Holdings' performance of all
of its obligations hereunder and the performance by all of the Brookdale
Lessees of their respective obligations under their applicable Property
Leases, PSLT-BLC Holdings shall return such cash or Letter of Credit (or any
portion thereof remaining) to BLC Holdings within twenty (20) Business Days
after the expiration of the Term or sooner termination of this Agreement
(other than a termination which results from an Event of Default). Any cash
deposited under this Paragraph 7(a)(xii) shall be held in a segregated bank
account and shall be invested in Permitted Investments. BLC Holdings shall be
responsible for the payment of any federal, state or local income tax earned
from Permitted Investments.

            (xiii) if any audit or the financial statements of Guarantor
contain a qualified opinion regarding Guarantor's ability to continue
operations as a "going concern"; or

            (xiv) if Guarantor fails to perform any of the terms, covenants or
conditions contained in the Guaranty beyond any applicable notice and cure
periods set forth therein.

Notwithstanding anything to the contrary set forth in this Paragraph 7(a), as
to any Facility that is encumbered by one or more Facility Mortgages (any such
encumbered Facility, an "Applicable Facility" and each Facility Mortgage
encumbering the Applicable Facility, an "Applicable Facility Mortgage"), if
and to the extent that:

      (A) a default occurs under clause (i), clause (ii), clause (iii) or
clause (vi) of this Paragraph 7(a), and

      (B) such default arises solely as a result of a default under or
relating to a Property Lease other than the Property Lease demising the
Applicable Facility (and not as result of a default under the Property Lease
demising the Applicable Facility),

then, provided that no other independent Event of Default then exists under
the Property Lease demising the Applicable Facility, such default shall not
constitute an Event of Default, unless the holders of each Applicable Facility
Mortgage (if any) encumbering the Applicable Facility consents in writing to
such default's constituting an Event of Default.

      (b) Remedies. If any of the Events of Default hereinabove specified
shall occur and be continuing, PSLT-BLC Holdings shall have and may exercise
any one or more of the following rights and remedies, in addition to any
remedies that may be available to any of the Provident Lessors under the
Property Leases, if the facts creating such Event of Default also

                                      19
<PAGE>

create an Event of Default (as defined in the Property Leases) under the
applicable Property Lease(s):

            (i) With respect to any Property Lease(s) and any Event(s) of
Default thereunder as contemplated by Paragraph 7(a)(i) hereof, but only to
the extent an Event of Default (as defined under the applicable Property
Lease) exists under the applicable Property Lease, PSLT-BLC Holdings may cause
and direct the applicable Provident Lessor(s) to terminate the applicable
Property Lease(s) and, peaceably or pursuant to appropriate legal proceedings,
re-enter, retake and resume possession of the applicable Facility(ies).

            (ii) If BLC Holdings defaults in its obligation under Paragraph
4(a) to fund Brookdale Rent Payments to the applicable Brookdale Lessee and to
cause the applicable Brookdale Lessee to pay such amount to the applicable
Provident Lessor as rent under the applicable Property Lease, then the
applicable Provident Lessor may recover immediately from BLC Holdings any and
all Brookdale Rent Payments and other sums and damages due or in existence at
the time of such termination, including, without limitation, the Master Rent
agreed and/or required to be paid by BLC Holdings to the applicable Provident
Lessor hereunder, and all other sums, charges, payments, costs and expenses
agreed and/or required to be paid by BLC Holdings to PSLT-BLC Holdings
hereunder, in each case, with interest thereon at the Overdue Rate provided
herein without in any way offsetting or limiting any and all obligations of
the Brookdale Lessees to pay rent under their respective Property Leases.

            (iii) If an Event of Default continues uncured for a period of six
(6) months, PSLT-BLC Holdings may, by written notice thereof to BLC Holdings,
terminate BLC Holdings' and the Brookdale Lessees' option to renew the
Property Leases for one or both of the Renewal Terms; provided, however, that
if, as a result of any such Event of Default, PSLT-BLC Holdings causes the
applicable Provident Lessor(s) to terminate the applicable Property Lease(s)
and PSLT-BLC Holdings and the applicable Provident Lessor(s) have actually
collected all damages required to be paid hereunder and thereunder with
respect to such Event of Default, then such Event of Default shall no longer
be deemed to exist for purposes of this Paragraph 7(b)(iii).

            (iv) PSLT-BLC Holdings may, on behalf of the Provident Lessors,
without causing or directing any of the Provident Lessors to re-enter, retake
or resume possession of the applicable Facility, sue BLC Holdings for all
Brookdale Rent Payments due from BLC Holdings to the Provident Lessors
hereunder or for any other sums, charges, payments, costs and expenses due
from BLC Holdings to PSLT-BLC Holdings hereunder (or any Brookdale Lessee
under a Property Lease under which an Event of Default (as defined thereunder)
has occurred for all rents and other sums, charges, payments, costs and
expenses due from the applicable Brookdale Lessee under its applicable
Property Lease) either: (A) as they become due under this Agreement (or the
applicable Property Lease); or (B) at PSLT-BLC Holdings' option, accelerate
the maturity and due date of the whole or any part of the Brookdale Rent
Payments for the entire then-remaining unexpired balance of the Initial Term
or the applicable Renewal Term, as the case may be (reduced to its present
value, applying an interest rate of eight and one-tenth percent (8.1%)), less
the fair rental value of the Facilities reduced to its present value, as well
as all other sums, charges, payments, costs and expenses required to be paid
by BLC Holdings to PSLT-BLC Holdings hereunder, including, without limitation,
damages (other than consequential damages) for breach or default of BLC
Holdings' obligations hereunder in

                                      20
<PAGE>

existence at the time of such acceleration, such that all sums due and payable
under this Agreement shall, following such acceleration, be treated as being
and, in fact, be due and payable in advance as of the date of such
acceleration. PSLT-BLC Holdings may then proceed to recover and collect on
behalf of the Provident Lessors all such unpaid Brookdale Rent Payments and
other sums so sued for from BLC Holdings by distress, levy, execution or
otherwise.

            (v) PSLT-BLC Holdings may pursue its remedies against Guarantor
under the Guaranty.

      (c) Remedies Not Exclusive. In addition to the remedies hereinabove
specified and enumerated, so long as an Event of Default has occurred and is
continuing, PSLT-BLC Holdings shall have and may exercise such other rights
and remedies as are available at law or in equity, and the mention in this
Agreement of any particular remedy shall not preclude PSLT-BLC Holdings from
having or exercising any other remedy at law or in equity. So long as an Event
of Default has occurred and is continuing, nothing herein contained shall be
construed as precluding PSLT-BLC Holdings from having or exercising such
lawful remedies as may be or become necessary in order to preserve its rights
hereunder, even before the expiration of any notice periods provided for in
this Agreement, if under the particular circumstances then existing, the
allowance of such notice periods will result in the termination of the
ownership interests of the Provident Lessors in the Facilities. In addition,
with respect to any Property Lease under which an Event of Default (as defined
thereunder) has occurred and is continuing, the applicable Provident Lessor
shall be entitled to exercise all of its rights and remedies under the
applicable Property Lease. Notwithstanding anything to the contrary contained
herein, in no event shall PSLT-BLC Holdings and any Provident Lessor have the
right, by exercise of their respective remedies under this Agreement and/or
the applicable Property Lease, to double recovery of any amounts, including,
without limitation, Rent (as defined in the Property Leases) or any interest
thereon.

8.    Intentionally Deleted.

9.    Financial and Other Statements. BLC Holdings shall furnish the following
statements to PSLT-BLC Holdings during the Term; provided, however, that with
respect to any reports or statements required to be furnished pursuant to
subparagraphs (a) and (d) below, if PSLT-BLC Holdings or its direct or
indirect Parent is at any time during the Term required to make securities
laws filings in connection with PSLT-BLC Holdings' or its direct or indirect
Parent's securities which require information contained in such reports or
statements, then the time frame for deliveries set forth below shall not apply
and BLC Holdings shall deliver such reports or statements to PSLT-BLC Holdings
not later than ten (10) days prior to the date(s) on which such filings are
required to be made (as set forth in a written notice from PSLT-BLC Holdings
to BLC Holdings):

      (a) Financial Statements, Budgets and Reports.

            (i) within forty five (45) days after each of the first three
quarters of each calendar year during the Term, the most recent unaudited
financial statements of BLC Holdings,

                                      21
<PAGE>

in each case accompanied by the Financial Officer's Certificate certifying
that the information contained therein is true and correct in all material
respects;

            (ii) within one hundred twenty (120) days after the end of each
calendar year during the Term, the most recent financial statements of BLC
Holdings, in each case accompanied by a Financial Officer's Certificate
certifying that the information contained therein is true and correct in all
material respects;

            (iii) within thirty (30) days after the end of each calendar
month, an unaudited statement of income, occupancy (including percentages) and
payor mix for the Facilities on an aggregate basis, accompanied by a Financial
Officer's Certificate certifying that the information contained therein is
true and correct in all material respects;

            (iv) promptly, upon Notice from PSLT-BLC Holdings, such other
information concerning the business, financial condition and affairs of BLC
Holdings and any Brookdale Lessees as PSLT-BLC Holdings may reasonably request
from time to time;

            (v) thirty (30) days prior to the first day of each Lease Year
during the Term, a capital budget for such Lease Year describing in reasonable
detail all anticipated Capital Additions to be made to each Facility, together
with a description of the source of funds therefor;

            (vi) within twenty (20) days after each calendar quarter during
the Term, an Officer's Certificate setting forth the Lease Coverage Ratio for
such calendar quarter;

            (vii) within thirty (30) days after each calendar quarter during
the Term, an Officer's Certificate setting forth Total Revenues, Operating
Expenses and NOI for such calendar quarter;

            (viii) upon reasonable request in writing from PSLT-BLC Holdings,
the following reports as of any calendar quarter end or with respect to any
other period for which PSLT-BLC Holdings may reasonably request: all loss runs
and material actuarial reports, studies, reviews and analysis, if any,
prepared by or on behalf of BLC Holdings and each of the Brookdale Lessees or
their insurance actuaries, quarterly and otherwise, concerning BLC Holdings'
and each of the Brookdale Lessees' reserves for expenses relating to
malpractice or professional liability and malpractice or professional
liability insurance; and

            (ix) copies of other financial statements required to be delivered
in connection with any Facility Mortgage.

      (b) Proprietary Information. Any proprietary information obtained by the
parties hereunder pursuant to the provisions of this Agreement shall be
treated as confidential, except that such information may be used, subject to
the appropriate confidentiality safeguards, in any litigation between the
parties or in connection with other Legal Requirements or as otherwise
required by securities or other laws. The obligations of BLC Holdings and
PSLT-BLC Holdings contained in this Paragraph 9(b) shall survive the
expiration or earlier termination of this Agreement; and

                                      22
<PAGE>

      (c) Record Keeping. BLC Holdings shall utilize, or cause the Brookdale
Lessees to utilize, an accounting system of the Facilities in accordance with
its usual and customary practices and in accordance with GAAP, which will
accurately record all NOI, and BLC Holdings or the Brookdale Lessees shall
retain, for at least five (5) years after the expiration of each Lease Year,
the accounting books and records supporting the determination of NOI for such
Lease Year. PSLT-BLC Holdings, at its own expense except as provided herein,
shall have the right from time to time by its accountants or representatives
to audit the information set forth in the Officer's Certificate and, in
connection with such audits, to examine BLC Holdings' and any Brookdale
Lessee's books and records (upon reasonable notice during customary business
hours) with respect thereto (including supporting data and sales and excise
tax returns) subject to any prohibitions or limitations on disclosure of any
such data under applicable law or regulations, including such limitations as
may be necessary to preserve the confidentiality of the facility-patient
relationship and the physician-patient privilege and/or other similar
privilege or confidentiality obligations.

      (d) Financial Statements of Guarantor. BLC Holdings shall cause
Guarantor to furnish to PSLT-BLC Holdings the following: (i) within forty five
(45) days after each of the first three quarters of any calendar year during
the Term, the most recent unaudited financial statements of Guarantor, and
(ii) as soon as available, and in any event within one hundred twenty (120)
days after the close of each calendar year during the Term, financial
statements prepared for such year, including a balance sheet and operating
statement as of the end of such year, together with related statements of
income and members' partners' or owner's capital for such calendar year,
audited by a "Big Four" accounting firm or a nationally recognized,
independent certified public accounting firm reasonably satisfactory to
PSLT-BLC Holdings, whose opinion shall be to the effect that such financial
statements have been prepared in accordance with GAAP, applied on a consistent
basis, and shall not be qualified as to the scope of the audit or as to the
status of Guarantor as a going concern. Together with Guarantor's quarterly
and annual financial statements, BLC Holdings shall cause Guarantor to furnish
to PSLT-BLC Holdings an Officer's Certificate certifying as of the date
thereof whether, to Guarantor's knowledge, there exists an event or
circumstance that constitutes an Event of Default under this Agreement or
that, with the giving of notice or the passage of time, or both, would
constitute a default by any Guarantor under the Guaranty, and if such Event of
Default hereunder or default under the Guaranty exists, the nature thereof,
the period of time it has existed and the action then being taken to remedy
the same.

      (e) Quarterly Meetings; Facility Level Meetings and Reviews. On a
quarterly basis, BLC Holdings shall permit, and upon request by PSLT-BLC
Holdings, shall make appropriate arrangements for, PSLT-BLC Holdings and/or
its representatives to discuss the affairs, operations, finances and accounts
of BLC Holdings, each Brookdale Lessee and Guarantor with, and be advised as
to the same by, senior officers of BLC Holdings or Guarantor (and such of BLC
Holdings' or Guarantor's independent accountants and other financial advisors
as would be relevant to the topic(s) of the particular meeting), all as
PSLT-BLC Holdings may reasonably deem appropriate for the purpose of verifying
any report(s) delivered by BLC Holdings to PSLT-BLC Holdings under this
Agreement or by the Brookdale Lessees under the Property Leases, or for
otherwise ascertaining compliance with this Agreement by BLC Holdings or
compliance with the Property Leases by the Brookdale Lessees, or the business,
operational or financial condition of BLC Holdings, each Brookdale Lessee,
Guarantor and/or any of the

                                      23
<PAGE>

Facilities. Without limitation of the foregoing, from time to time promptly
following receipt of written notice from PSLT-BLC Holdings to BLC Holdings
(and in any event within five (5) Business Days of such receipt), BLC Holdings
shall permit, and shall make appropriate arrangements for, PSLT-BLC Holdings
and/or PSLT-BLC Holdings' representatives to discuss the business, operational
and financial condition of specific Facilities designated by PSLT-BLC Holdings
with, and be advised as to the same by, appropriate personnel of BLC Holdings,
the Brookdale Lessees and Guarantor having operational and accounting
responsibilities for the Facilities so specified by PSLT-BLC Holdings, and to
review, and make abstracts from and copies of, the books, accounts and records
of BLC Holdings, the Brookdale Lessees and Guarantor relative to any such
Facilities. Unless otherwise agreed in writing by PSLT-BLC Holdings and BLC
Holdings, all of the discussions, reviews, abstracting and copying referenced
in this Paragraph 9(e) shall occur during normal business hours.

10.   Additional Covenants of BLC Holdings.

      (a) Indebtedness of BLC Holdings. BLC Holdings shall not create, incur,
assume or guarantee, or permit to exist, or become or remain liable directly
or indirectly upon, any indebtedness.

      (b) Minimum Capital Additions Amount. BLC Holdings shall cause each of
the Brookdale Lessees, in accordance with Paragraph 25(d) of the Property
Leases, to expend an amount at least equal to the Minimum Capital Additions
Amount (as defined in each Property Lease) on Capital Additions with respect
each of the Facilities; provided, however, that PSLT-BLC holdings agrees that
it shall not be a default under any individual Property Lease if during any
Lease Year, the applicable Brookdale Lessee does not expend the entire Minimum
Capital Additions Amount for such applicable Facility, if the aggregate amount
expended by such Brookdale Lessee and the other Brookdale Lessees during such
Lease Year equals, at a minimum, the sum of all of the Minimum Capital
Additions Amounts under all of the Property Leases. In addition, PSLT-BLC
Holdings agrees that provided no Event of Default is then outstanding, BLC
Holdings and the Brookdale Lessees, in lieu of making such payments to satisfy
the provisions of this Paragraph 10(b) and Paragraph 25(d) of the Property
Leases, shall have the absolute right to cause PSLT-BLC Holdings (and PSLT-BLC
Holdings agrees) to apply portions of the Security Deposit maintained
hereunder to be used toward the expenditure of the Minimum Capital Additions
Amount with respect to the Facilities; provided, however, that, in no event
may BLC Holdings request that PSLT-BLC Holdings apply towards Capital
Additions with respect to the Facilities more than an aggregate amount equal
to the product of (i) the sum of the number of units contained in all of the
Facilities times (ii) Six Hundred Dollars ($600) per Lease Year. If BLC
Holdings so causes a portion of the Security Deposit to be so applied towards
the Minimum Capital Additions Amount, BLC Holdings shall not be required to
pay any deficiency to PSLT-BLC Holdings to restore the Security Deposit to the
Security Amount. Notwithstanding anything to the contrary contained herein, if
BLC Holdings has delivered a Letter of Credit pursuant to Paragraph 33 hereof,
BLC Holdings shall have no right under this Paragraph 10(b) to request that
PSLT-BLC Holdings draw amounts under the Letter of Credit to apply towards the
expenditure of the Minimum Capital Additions Amount, it being agreed that such
right exists only with respect to any Security Deposit delivered pursuant to
the terms of this Agreement; provided that BLC Holdings may cause the amount
of the Letter of Credit to be reduced by the amount Tenant would have been
entitled to have advanced to it as provided in

                                      24
<PAGE>

this Paragraph 10(b), so long as (i) BLC Holdings causes the amount of money
by which the Letter of Credit is reduced to have been actually expended
towards the Minimum Capital Additions Amount and (ii) BLC Holdings shall
deliver to PSLT-BLC Holdings a replacement Letter of Credit in the reduced
amount or an amendment to the Letter of Credit reflecting the reduced amount.

      (c) Modification of Organizational Documents. BLC Holdings shall not,
without the prior written consent of PSLT-BLC Holdings in each instance,
permit any amendment of its certificate of formation and operating agreement,
or amend the certificate of formation or operating agreement of any of the
Brookdale Lessees.

11.   Limitation on Liability. Subject to BLC Holdings' rights against Provident
under Paragraph 5(c) and Paragraph 35(c), if BLC Holdings is awarded a money
judgment against PSLT-BLC Holdings, then BLC Holdings' sole recourse for
satisfaction of such judgment shall be limited to execution against PSLT-BLC
Holdings' ownership interest in the Provident Lessors. Subject to BLC
Holdings' rights against Provident under Paragraph 5(c) and Paragraph 35(c),
in no event shall any trustee, stockholder, shareholder, member, manager,
partner, employee, officer or beneficiary of PSLT-BLC Holdings be personally
liable for the obligations of PSLT-BLC Holdings or any Provident Lessor
hereunder. Except to the extent provided in the terms of the Guaranty or any
other Parent guaranty or indemnity, in no event shall any trustee,
shareholder, member, guarantor, partner, employee, officer or beneficiary of
BLC Holdings be personally liable for any of the obligations of BLC Holdings
hereunder.

12.   Facility Mortgages.

      (a) Cooperation in Obtaining Facility Mortgages. BLC Holdings and the
Brookdale Lessees agree to reasonably cooperate with PSLT-BLC Holdings and the
Provident Lessors to assist PSLT-BLC Holdings and the Provident Lessors in
obtaining new Facility Mortgages or a refinancing of the Existing Facility
Mortgages or otherwise obtain additional mortgage debt secured by the
Facilities (any of the foregoing referred to herein as a "Facility Mortgage
Refinancing"), with respect to the Provident Lessors' fee or leasehold
interests, as applicable, in the Facilities. Subject to the execution of a
reasonably satisfactory confidentiality agreement, and provided there is no
violation of (i) any security, health, safety or confidentiality requirements
of any Governmental Agency or imposed by applicable law or regulations and/or
(ii) any Brookdale Lessee's ordinary business practices and standard resident
agreements, if any, requiring such Brookdale Lessee to maintain the
confidential nature of certain personal information relating to individual
residents living in the Facility, BLC Holdings shall, and shall cause the
Brookdale Lessee to, provide such information as is reasonably requested by
PSLT-BLC Holdings or any proposed Facility Mortgagee with respect to BLC
Holdings, the Brookdale Lessees, Guarantor or the operation of any Facility to
facilitate in obtaining such Facility Mortgage. Neither BLC Holdings nor any
Brookdale Lessee shall have any right to approve the terms of any Facility
Mortgage, and PSLT-BLC Holdings may, and may cause the applicable Provident
Lessor to, obtain any Facility Mortgage as it may determine in its sole
discretion; provided, however, that PSLT-BLC Holdings agrees that the business
terms, provisions and conditions contained in any Facility Mortgage (other
than any existing Facility Mortgage) shall be commercially reasonable in the
market at the time such Facility Mortgage is obtained and shall be reasonably
consistent with the then current standards for similar-type

                                      25
<PAGE>

financing transactions affecting similar types of properties (provided,
however, that with respect to assessing whether the insurance requirements
under the proposed Facility Mortgage satisfy the foregoing requirement, the
standard set forth in Paragraph 18(a)(xiv) of each of the Property Leases
shall govern); provided, further, that in no event shall the terms of any
Facility Mortgage increase the Base Rent (as defined in the applicable
Property Lease(s)) payable under the applicable Property Lease(s) or alter the
payment schedule for Base Rent thereunder, and BLC Holdings agrees that BLC
Holdings' and the Brookdale Lessees' respective obligations to comply with the
terms of any such Facility Mortgage shall not be deemed to be in contravention
or conflict with the terms of this Agreement or the applicable Property
Lease(s), even in cases where the Facility Mortgage imposes obligations that
are greater than the obligations of BLC Holdings under this Agreement or of
the Brookdale Lessee(s) under the applicable Property Lease(s). In addition,
(x) PSLT-BLC Holdings shall not, and shall cause the Provident Lessors not to,
obtain any Facility Mortgage Refinancing which contains a prepayment premium,
prepayment penalty, defeasance provision or other similar exit fee or charge
which is higher than that which is commercially reasonable and reasonably
consistent with then current standards for similar-type financing transactions
affecting similar types of properties, and (y) PSLT-BLC Holdings shall, and
shall cause the Provident Lessors to, use commercially reasonable efforts to
cause the Facility Mortgagee under any Facility Mortgage Refinancing to (A)
include a provision in the Facility Mortgage which permits the assignment of
such Facility Mortgage to, and the assumption of such Facility Mortgage by,
BLC Holdings or its designee in accordance with the Purchase Option
contemplated pursuant to Paragraph 14 hereof, or (B) provide express consent
to the assignment and assumption of such Facility Mortgage to BLC Holdings or
its designee in accordance with the Purchase Option contemplated pursuant to
Paragraph 14 hereof; provided, however, that if PSLT-BLC Holdings and/or the
applicable Provident Lessor is unsuccessful in its efforts to obtain the
provisions set forth in this clause (y), then it shall not be a default
hereunder if such terms are not included in the Facility Mortgage Refinancing.

      (b) Notice of Facility Mortgage Refinancing. Provided there is no
existing and continuing Event of Default, if PSLT-BLC Holdings or any
Provident Lessor intends to enter into a Facility Mortgage Refinancing with
respect to any of the Facilities during Lease Years one (1) through six (6) of
the Initial Term, PSLT-BLC Holdings shall deliver to BLC Holdings written
Notice thereof (the "Refinancing Notice") not later than thirty (30) days
prior to the anticipated closing date of any such Facility Mortgage
Refinancing. Any Refinancing Notice delivered to BLC Holdings pursuant to this
Paragraph 12(b), shall include a copy of a bona fide term sheet setting forth
the proposed terms of any such Facility Mortgage Refinancing, including,
without limitation the principal amount, the interest rate, the term to
maturity and any amortization payments in connection with such Facility
Mortgage Refinancing (collectively, the "Proposed Financing Terms"). Within
five (5) Business Days after receipt of the Refinancing Notice and the bona
fide term sheet referenced in the immediately preceding sentence, BLC Holdings
shall deliver written Notice to PSLT-BLC Holdings of either (i) its acceptance
of the Proposed Financing Terms and its desire to have the applicable
Brookdale Lessee obtain the proceeds of any such Facility Mortgage Refinancing
(in accordance with the Proposed Financing Terms) actually received by the
applicable Provident Lessor in excess of the amount needed to refinance the
then existing Facility Mortgage, net of transaction costs (except that if
there is no Facility Mortgage then in existence which is being refinanced, BLC
Holdings may elect to receive the entire principal amount actually received by
the applicable Provident Lessor), or (ii) its desire for PSLT-BLC Holdings or
the applicable Provident Lessor to obtain a Facility

                                      26
<PAGE>

Mortgage Refinancing that will provide more net proceeds for the applicable
Brookdale Lessee. If BLC Holdings exercises its rights to obtain the proceeds
of any Facility Mortgage Refinancing as provided in this Paragraph 12(b), then
such Facility Mortgage Refinancing shall be deemed to be a Brookdale Requested
Refinancing and the provisions of Paragraph 12(c) hereof shall govern. If BLC
Holdings fails to deliver said Notice in response to the Refinancing Notice
within such five (5) Business Day period (time being of the essence with
respect to such five (5) Business Day period), then BLC Holdings shall be
conclusively deemed to have waived its rights under this Paragraph 12(b). BLC
Holdings shall not be entitled to receive Notice of any Facility Mortgage
Refinancing, and shall be not have the right to obtain the proceeds of any
such Facility Mortgage Refinancing, in each case as contemplated by this
Paragraph 12(b), during Lease Years seven (7) through fifteen (15) of the
Initial Term or during any Renewal Term.

      (c) Brookdale Right to Request Financing. Provided there is no existing
and continuing Event of Default, BLC Holdings shall have the right, during
Lease Years one (1) through six (6) of the Initial Term only, to request in
writing, not more frequently than two (2) times per calendar year with respect
to some or all of the Facilities (it being intended that any such semi-annual
request shall list all of the Facilities for which BLC Holdings is requesting
a Brookdale Requested Refinancing (defined below) at such time), that PSLT-BLC
Holdings and the applicable Provident Lessor attempt to obtain a Facility
Mortgage Refinancing or a second mortgage with respect to such Provident
Lessor's interest in the Facility (each, a "Brookdale Requested Refinancing");
provided, however, that if BLC Holdings initiates a Brookdale Requested
Refinancing, PSLT-BLC Holdings and the applicable Provident Lessor shall be
required only to use commercially reasonable efforts to obtain such financing
from the holder of the Facility Mortgage then in place with respect to the
applicable Facility; provided, further, that (i) PSLT-BLC Holdings and the
applicable Provident Lessor(s) shall have no obligation to obtain such
financing to the extent that such financing would, in the reasonable
discretion of PSLT-BLC Holdings, adversely affect the status or treatment of
PSLT-BLC Holdings or its direct or indirect Parent as a real estate investment
trust ("REIT"), and (ii) BLC Holdings shall have no right to request a
Brookdale Requested Refinancing with respect to any of the Existing Guaranty
Facilities until such time, if ever, during the first six (6) Lease Years of
the Initial Term only, that Provident and/or any of its subsidiaries which has
assumed the obligations under the Existing Guaranty relating to the Existing
Guaranty Facility Mortgage encumbering such Existing Guaranty Facility has
been released from all liability under the applicable Existing Guaranty
pursuant to the terms of such Existing Guaranty (as determined by PSLT-BLC
Holdings in its reasonable discretion) or a release document executed by the
applicable Existing Guaranty Facility Mortgagee in form and substance
reasonably satisfactory to Provident and/or the applicable subsidiary of
Provident. PSLT-BLC Holdings hereby agrees that it shall not take any action
which would impair the ability of Provident and/or any of its subsidiaries
which has assumed the obligations under an Existing Guaranty to obtain a
release of such obligations as described in the immediately preceding
sentence. In addition, BLC Holdings shall have no right to request a Brookdale
Requested Refinancing during Lease Years seven (7) through fifteen (15) of the
Initial Term or during any Renewal Term. Subject to the provisions of this
Paragraph 12(c), PSLT-BLC Holdings and the applicable Provident Lessor shall
use commercially reasonable efforts to (a) obtain such Brookdale Requested
Refinancing with respect to the applicable Facility on terms that will enable
such disbursements to the applicable Brookdale Lessee pursuant to this
Paragraph 12(c) to qualify as "straight-debt" within the meaning of the REIT
rules or otherwise be REIT-Compliant, provided that BLC Holdings and the
Brookdale

                                      27
<PAGE>

Lessees shall reasonably cooperate with PSLT-BLC Holdings and the Provident
Lessors in obtaining such Brookdale Requested Refinancing (subject to the
provisions of Paragraph 12(a) above), and (b) if reasonably requested by BLC
Holdings with respect to any Existing Guaranty and PSLT-BLC Holdings
reasonably determines that the conditions set forth in such Existing Guaranty
have been met or BLC Holdings agrees to satisfy the conditions to the release
or discharge of such Existing Guaranty, reasonably attempt to obtain a release
of liability under such Existing Guaranty (to facilitate BLC Holdings' ability
to request a Brookdale Requested Refinancing with respect to the related
Existing Guaranty Facility). If such Brookdale Requested Refinancing results
in a new Facility Mortgage or a refinancing of an Existing Facility Mortgage,
the proceeds of any such financing actually received by the applicable
Provident Lessor in excess of the amount needed to refinance the then existing
Facility Mortgage (except that if there is no Facility Mortgage then in
existence which is being refinanced, the entire principal amount actually
received by the applicable Provident Lessor) shall be disbursed to the
applicable Brookdale Lessee and such amount plus all Financing Costs
(collectively, the "Brookdale Requested Refinancing Basis") shall be added to
the Lease Basis under the related Property Lease for the applicable Facility
such that the Base Rent under such Property Lease shall be adjusted in
accordance with its terms, provided that, if BLC Holdings exercises its option
to obtain proceeds from a Facility Mortgage Refinancing initiated by PSLT-BLC
Holdings in accordance with the provisions of Paragraph 12(b) above, the term
"Brookdale Requested Refinancing Basis" shall mean the proceeds of any such
Facility Mortgage Refinancing disbursed to the applicable Brookdale Lessee
plus a portion of the Financing Costs (equal to the percentage that the
proceeds of the Facility Mortgage Refinancing disbursed to the applicable
Brookdale Lessee bears to the aggregate proceeds of such Facility Mortgage
Refinancing). If such Brookdale Requested Refinancing results in a second
mortgage financing, the proceeds thereof shall be disbursed to the applicable
Brookdale Lessee, and such amount plus all Financing Costs (collectively, the
"Brookdale Requested Second Financing Basis") shall be added to the Lease
Basis under the related Property Lease for the applicable Facility such that
the Base Rent under such Property Lease shall be adjusted in accordance with
its terms, provided that, if BLC Holdings exercises its option in accordance
with the provisions of Paragraph 12(b) above to obtain proceeds from a
Facility Mortgage Refinancing initiated by PSLT-BLC Holdings which is a second
mortgage financing, the term "Brookdale Requested Second Financing Basis"
shall mean the proceeds of any such Facility Mortgage Refinancing which is a
second mortgage financing disbursed to the applicable Brookdale Lessee plus a
portion of the Financing Costs (equal to the percentage that the proceeds of
the Facility Mortgage Refinancing disbursed to the applicable Brookdale Lessee
bears to the aggregate proceeds of such Facility Mortgage Refinancing).
Amounts received by the applicable Brookdale Lessee pursuant to a Brookdale
Requested Refinancing shall be treated for federal income tax purposes by the
applicable Provident Lessor and the applicable Brookdale Lessee as a separate
debt instrument issued by the applicable Brookdale Lessee to the applicable
Provident Lessor and increases in rent associated with the inclusion of such
amounts in the Lease Basis under the applicable Property Lease shall be
treated by the applicable Provident Lessor and the applicable Brookdale Lessee
for federal income tax purposes as payments of principal and interest on such
separate debt instrument rather than as payments of additional rent owed for
the use or occupancy of the applicable Facility.

      (d) PSLT-BLC Holdings Covenant Regarding Encumbrances. PSLT-BLC Holdings
hereby agrees that during Lease Years one (1) through six (6) of the Initial
Term, PSLT-BLC

                                      28
<PAGE>

Holdings shall not (i) pledge or otherwise encumber its interest in the
Provident Lessors, (ii) permit the Provident Lessors to pledge or otherwise
encumber the Facilities or their interests in the Facility Leases (provided
that nothing contained in this Paragraph 12(d) shall be deemed or interpreted
to in any way restrict any Provident Lessor from maintaining any Existing
Facility Mortgage or entering into any Facility Mortgage Refinancing), or
(iii) enter into or cause the Provident Lessors to enter into any agreement
which contains covenants or other agreements expressly restricting the ability
of any Provident Lessor to enter into Brookdale Requested Refinancings or the
amount that may be borrowed thereunder, other than the Existing Facility
Mortgages and any Facility Mortgage Refinancings, provided that it is agreed
that it shall be a default under this Paragraph 12(d) if Provident or any of
its Affiliates enters into an agreement of the type described in this clause
(iii).

      (e) Subordination. PSLT-BLC Holdings and BLC Holdings hereby acknowledge
and agree that the Brookdale Lessees' interests under the Property Leases and
the Brookdale Lessees' leasehold interests in and to the Facilities are
junior, inferior, subordinate and subject in right, title, interest, lien,
encumbrance, priority and all other respects to the lien of any one or more
Facility Mortgages now or hereafter in force and effect upon or encumbering
the Provident Lessors' interests in the Facilities, or any portion thereof,
and to all collateral assignments by the Provident Lessors to any third party
or parties of any of the Provident Lessors' rights under the Property Leases
or the rents, issues and profits thereof or therefrom as security for any
liability or indebtedness, direct, indirect or contingent, of the Provident
Lessors to such third party or parties, and to all future modifications,
extensions, renewals, consolidations and replacements of, and all amendments
and supplements to, any such mortgage, mortgages or assignments, provided
that, in connection with any Facility Mortgage (other than the Existing
Facility Mortgages) (regardless of whether such Facility Mortgage is a
Brookdale Requested Refinancing) placed upon the Facilities after the date
hereof, PSLT-BLC Holdings shall (or shall cause the applicable Provident
Lessor(s) to) cause the applicable Facility Mortgagee to enter into, execute
and deliver a subordination, non-disturbance and attornment agreement
substantially similar to the form attached to the Property Leases as Exhibit C
or such other form as shall be reasonably acceptable to BLC Holdings, PSLT-BLC
Holdings and the applicable Facility Mortgagee (the "SNDA"), which SNDA shall
acknowledge the subordination of the Property Leases described in this
Paragraph 12(e) and shall provide, among other things, that if the Facility
Mortgagee or any other person acquires title to the applicable Facility, so
long as the applicable Brookdale Lessee is not in default (beyond the
expiration of any applicable notice and/or grace period) under the applicable
Property Lease, the applicable Brookdale Lessee's leasehold estate possession
and occupancy of the applicable Facility shall not be disturbed, provided
further that BLC Holdings shall cause the Brookdale Lessees to enter into,
execute and delivery promptly to the requesting party the SNDA in accordance
with the terms of this Paragraph 12(e) and the Property Leases.

13.   Representations and Warranties.

      (a) Representations of BLC Holdings. To induce PSLT-BLC Holdings to
enter into this Agreement, BLC Holdings represents and warrants to PSLT-BLC
Holdings as follows:

            (i) Status and Authority of BLC Holdings. BLC Holdings is a
limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware. BLC Holdings has all
requisite power and authority to enter into and perform

                                      29
<PAGE>

its obligations under this Agreement and to consummate the transactions
contemplated hereby. BLC Holdings is duly qualified to transact business in
each jurisdiction in which the nature of the business conducted by it requires
such qualification.

            (ii) Action of BLC Holdings. BLC Holdings has taken all necessary
action to authorize the execution, delivery and performance of this Agreement,
and this Agreement constitutes the valid and binding obligation and agreement
of BLC Holdings, enforceable against BLC Holdings in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting
the rights and remedies of creditors.

            (iii) No Violations of Agreements. Subject to obtaining the
required consents contemplated by the Stock Purchase Agreement, neither the
execution, delivery or performance of this Agreement by BLC Holdings, nor
compliance with the terms and provisions hereof, will result in any breach of
the terms, conditions or provisions of, or conflict with or constitute a
default under, or result in any breach of the terms, conditions or provisions
of, or conflict with or constitute a default under, or result in the creation
of any lien, charge or encumbrance upon any Facility or any property or assets
of BLC Holdings pursuant to the terms of any indenture, mortgage, deed of
trust, note, evidence of indebtedness or any other material agreement or
instrument by which BLC Holdings is bound.

            (iv) Litigation. BLC Holdings has received no written notice and,
to BLC Holdings' knowledge, no action or proceeding is pending or threatened
which questions the validity of this Agreement.

      (b) Representations of PSLT-BLC Holdings. To induce BLC Holdings to
enter into this Agreement, PSLT-BLC Holdings represents and warrants to BLC
Holdings as follows.

            (i) Status and Authority of PSLT-BLC Holdings. PSLT-BLC Holdings
is a duly organized, validly existing limited liability company and in good
standing under the laws of the State of Delaware, and has all requisite power
and authority under the laws of such State to enter into and perform its
obligations under this Agreement and to consummate the transactions
contemplated hereby. PSLT-BLC Holdings is duly qualified and is in good
standing in each jurisdiction in which the nature of the business conducted by
it requires such qualification.

            (ii) Action of PSLT-BLC Holdings. PSLT-BLC Holdings has taken all
necessary action to authorize the execution, delivery and performance of this
Agreement, and upon the execution and delivery of this Agreement by PSLT-BLC
Holdings, it shall constitute the valid and binding obligation and agreement
of PSLT-BLC Holdings, enforceable against PSLT-BLC Holdings in accordance with
its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting
the rights and remedies of creditors.

            (iii) No Violations of Agreements. Neither the execution, delivery
or performance of this Agreement by PSLT-BLC Holdings, nor compliance with the
terms and provisions hereof, will result in any breach of the terms,
conditions or provisions of, or conflict with or constitute a default under,
or result in any creation of any lien, charge or encumbrance

                                      30
<PAGE>

upon any Facility or any of the property or assets of PSLT-BLC Holdings
pursuant to the terms of any indenture, mortgage, deed of trust, note,
evidence of indebtedness or any other material agreement or instrument by
which PSLT-BLC Holdings is bound.

            (iv) Litigation. No investigation, action or proceeding is pending
and, to PSLT-BLC Holdings' knowledge, no action or proceeding is pending or
threatened which questions the validity of this Agreement or any action taken
or to be taken pursuant hereto.

14.   Purchase Option.

      (a) Purchase Option. Subject to (i) the rights of any Facility Mortgagee
at such time to consent to or otherwise approve any such purchase, (ii) there
being no Event of Default existing hereunder either at the time BLC Holdings
delivers the Purchase Notice (as defined below) or on the date upon which the
Option Closing (as defined below) occurs, and (iii) there being no Management
Termination Event existing under Paragraph 28(a)(ii) hereof either at the time
BLC Holdings delivers the Purchase Notice or on the date upon which the Option
Closing occurs, then, at any time after the tenth (10th) Lease Year during the
Initial Term and during the last Lease Year during any applicable Renewal
Term, BLC Holdings shall have the option (the "Purchase Option"), exercisable
by giving PSLT-BLC Holdings an irrevocable written Notice (the "Purchase
Notice") of BLC Holdings' election to exercise such option, to purchase on the
date specified in such Purchase Notice (the "Option Closing Date") all but not
fewer than all of the Facilities which are subject to Property Leases and this
Agreement or, at BLC Holdings' option, all of PSLT-BLC Holdings' membership
interests in the Provident Lessors (the "Ownership Interests"), in each case,
subject to the Facility Mortgages then affecting the Facilities. The sale of
the Facilities or the Ownership Interests pursuant to the Purchase Option
shall be at a price (the "Option Price") equal to the sum of: (i) the greater
of (A) the aggregate Fair Market Value of all of the Facilities and (B) the
Minimum Option Purchase Price, plus (ii) the lesser of (A) $75,000,000 minus
the aggregate of all amounts previously paid to any Provident Lessor under the
penultimate sentence of Paragraph 17(b) of any applicable Property Lease, and
(B) an amount, but not less than zero, equal to (I) the gain, if any,
recognized for federal income tax purposes by PSLT-BLC Holdings on the sale of
the Facilities or the Ownership Interests, as the case may be, minus (II) the
cash proceeds from such sale of the Facilities or the Ownership Interests, as
the case may be, minus (III) any net operating losses for federal income tax
purposes carried over from Brookdale Living Communities, Inc. with respect to
taxable years ending on or prior to the Commencement Date which remain unused
as of the Option Closing Date, minus (IV) any net increase in the aggregate
amount of Facility Mortgages subsequent to the Commencement Date, excluding
any proceeds of such increased borrowings which have been disbursed to a
Brookdale Lessee pursuant to Paragraph 12(c) hereof, plus (V) any net
reduction, subsequent to the Commencement Date, in the aggregate amount of
Facility Mortgages. The Option Closing Date shall be no earlier than sixty
(60) days, and no later than one hundred twenty (120) days (the "Outside
Closing Date"), following the date of delivery of the Purchase Notice;
provided, however, that the Outside Closing Date may be extended by either
party for a period not to exceed thirty (30) days for the purpose of obtaining
the consents, releases and/or other documents required under any Facility
Mortgages as contemplated by clause (iv) and clause (v) of Paragraph 14(b)
below. If BLC Holdings has delivered the Purchase Notice to PSLT-BLC Holdings
and the Option Closing Date does not occur (for any reason other than a
default by PSLT-BLC Holdings under this Paragraph 14) by the Outside Closing
Date (as

                                      31
<PAGE>

the same may be extended in accordance with the terms of the immediately
preceding sentence), then the Purchase Option shall terminate and be of no
further force and effect, and BLC Holdings shall reimburse PSLT-BLC Holdings
for all reasonable out-of-pocket costs and expenses incurred by PSLT-BLC
Holdings and/or any Provident Lessor as a result of BLC Holdings giving the
Purchase Notice. If BLC Holdings exercises its option to purchase the
Facilities or the Ownership Interests pursuant to this Paragraph 14(a),
PSLT-BLC Holdings shall cause the Provident Lessors to transfer to BLC
Holdings or its designee all of the Provident Lessors' right, title and
interest in and to the Facilities or PSLT-BLC Holdings shall transfer the
Ownership Interests on the date specified in the Purchase Notice upon receipt
of the Option Price in accordance with Paragraph 14(b). At BLC Holdings'
election, BLC Holdings shall have the right, at its sole cost and expense, to
commence the process for determining the Fair Market Value of the Facilities
pursuant to Paragraph 14(c) hereof and finalize such determination prior to
sending the Purchase Notice and PSLT-BLC Holdings shall use commercially
reasonable efforts to cooperate with same, at BLC Holdings' sole cost and
expense.

      (b) Provisions Relating to the Exercise of Purchase Option. In
connection with BLC Holdings' exercise of its Purchase Option to purchase the
Facilities or the Ownership Interests, the following shall apply to the
closing (the "Option Closing") of the purchase of the Facilities or the
Ownership Interests pursuant to the Purchase Option:

            (i) Either (A) the Provident Lessors shall execute and deliver to
BLC Holdings (or to the BLC Holdings' designee) at BLC Holdings' cost and
expense a special warranty deed with respect to each of the Facilities, a bill
of sale with respect to the Related Personal Property (as defined in the
Property Leases) and any other assignment or agreement transferring all right,
title and interest of the Provident Lessors in the Facilities, including,
without limitation, any contracts, agreements and/or documents related in any
manner to the operation of the Facilities, in each case in recordable form in
the relevant jurisdiction, if required, but with no representation or warranty
of any kind by any Provident Lessor except as to the absence of any Liens
attributable to any Provident Lessor (other than any Facility Mortgages
affecting the Facilities), or (B) PSLT-BLC Holdings shall execute and deliver
an assignment of Ownership Interests with respect to each Provident Lessor,
but with no representation or warranty of any kind by any PSLT-BLC Holdings
except as to the absence of any Liens attributable to PSLT-BLC Holdings (other
than any Facility Mortgages affecting the Facilities);

            (ii) The Facilities or Ownership Interests shall be conveyed to
BLC Holdings or its designee "AS IS" and in their then present condition.
PSLT-BLC Holdings and the Provident Lessors each hereby specifically disclaims
any warranty (oral or written) concerning: (i) the nature and condition of the
Facilities and the suitability thereof for any and all activities and uses
that BLC Holdings or its designee may elect to conduct thereon; (ii) the
manner, construction, condition and state of repair or lack of repair of any
improvements located thereon; (iii) the nature and extent of any right-of-way,
lien, encumbrance, license, reservation, condition or otherwise; (iv) the
compliance of the Facilities or their operation with any laws, rules,
ordinances, or regulations of any government or other body; and (v) any other
matter whatsoever. BLC Holdings and the Brookdale Lessees expressly
acknowledges that, in consideration of the agreements of PSLT-BLC Holdings
herein, PSLT-BLC HOLDINGS AND THE PROVIDENT LESSORS MAKE NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, TO OR FOR
THE BENEFIT OF

                                      32
<PAGE>

BLC HOLDINGS OR THE BROOKDALE LESSEES AND CONCERNING ALL OR ANY PORTION OF THE
FACILITIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF QUANTITY, QUALITY,
CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF ALL OR ANY PORTION OF THE FACILITIES, ANY IMPROVEMENTS
LOCATED THEREON, AND ANY SOIL CONDITIONS RELATED THERETO. BLC HOLDINGS AND THE
BROOKDALE LESSEES SPECIFICALLY ACKNOWLEDGE AND AGREE THAT THEY ARE NOT RELYING
ON (AND PSLT-BLC HOLDINGS AND THE PROVIDENT LESSORS HEREBY DISCLAIM AND
RENOUNCE) ANY REPRESENTATIONS, WARRANTIES OR COVENANTS OF ANY KIND OR NATURE
WHATSOEVER MADE BY, OR ON BEHALF OF, PSLT-BLC HOLDINGS OR THE PROVIDENT
LESSORS AND RELATING TO ALL OR ANY PORTION OF THE FACILITIES OTHER THAN THE
SPECIAL WARRANTIES CONTAINED IN THE DEED, IF ANY;

            (iii) PSLT-BLC Holdings and the Provident Lessors shall execute
and deliver to BLC Holdings or its designee and to the title insurance company
issuing title insurance in connection with such transaction a customary title
affidavit in form and substance reasonably acceptable to PSLT-BLC Holdings,
the applicable Provident Lessor and the title insurance company, including,
without limitation, with respect to the absence of liens attributable to
PSLT-BLC Holdings or the Provident Lessors (other than any Facility
Mortgages);

            (iv) If BLC Holdings or its designee assume any Facility Mortgage
in connection with the purchase of the Facilities or the Ownership Interests,
(A) BLC Holdings or its designee shall provide all information requested by
any Facility Mortgagee in connection with any consents required under the
Facility Mortgages and shall obtain any such consents in advance of the Option
Closing (and PSLT-BLC Holdings shall use commercially reasonable efforts to
cooperate with same), it being intended that obtaining such consents shall be
a condition to the Option Closing, (B) PSLT-BLC Holdings shall, or shall cause
the applicable Provident Lessors to, execute and deliver such assignments of
the Facility Mortgages (including, without limitation, all rights in and to
any reserve or escrow held by the applicable Facility Mortgagee (except for
principal reserve escrows)) as shall be necessary to evidence the applicable
Provident Lessor's assignment of, and the applicable assignee's assumption of,
the Facility Mortgages, (C) BLC Holdings or its designee shall pay all costs
and expenses in connection with obtaining any Facility Mortgage consents and
in connection with the assignment and assumption of the Facility Mortgage,
including, without limitation, assumption fees, rating agency fees, reasonable
attorneys' fees (of the Facility Mortgagees, any rating agencies, BLC Holdings
and PSLT-BLC Holdings) and any premiums, fees or penalties incurred in
connection therewith, and (D) BLC Holdings shall receive a credit against the
Option Price in an amount equal to (x) the outstanding principal balance of
the Facility Mortgages assumed less (y) any principal reserve escrows which
are and shall at all times remain the property of PSLT-BLC Holdings or the
applicable Provident Lessor. PSLT-BLC Holdings or the applicable Provident
Lessors shall assign to BLC Holdings or its designee all rights and interests
in and to any escrow reserves (other than principal reserve escrows) then held
by the applicable Facility Mortgagee(s) which have been funded by BLC Holdings
or the applicable Brookdale Lessee for application to future payments under
such Facility Mortgage(s);

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<PAGE>

            (v) Should BLC Holdings or its designee cause the repayment,
prepayment or defeasance of any Facility Mortgage in connection with the
purchase of the Facilities or the Ownership Interests, (A) BLC Holdings shall
be obligated to procure, in advance of the Option Closing, from the Facility
Mortgagees or the trustee in any securitization in which any Facility Mortgage
is included, any and all release or defeasance documents necessary in
connection with such repayment, prepayment of defeasance, as the case may be
(and PSLT-BLC Holdings shall use commercially reasonable efforts to cooperate
with same), it being intended that obtaining such release or defeasance
documents shall be a condition to the Option Closing, (B) BLC Holdings or its
designee shall pay all costs and expenses in connection with such repayment,
prepayment or defeasance, as the case may be, including, without limitation,
prepayment penalties or premiums, any deposits required in connection with a
defeasance, rating agency fees, reasonable attorneys' fees (of the Facility
Mortgagees, any trustee in a securitization, any rating agencies, BLC Holdings
and PSLT-BLC Holdings) and any other premiums, fees or penalties incurred in
connection therewith, and (C) BLC Holdings shall indemnify PSLT-BLC Holdings,
the applicable Provident Lessors and their respective directors, employees and
agents from and against any and all claims relating to or arising out of any
such prepayment, repayment or defeasance. The indemnity provisions of this
Paragraph 14(b) shall survive the termination of this Agreement;

            (vi) PSLT-BLC Holdings shall execute such other documents
reasonably requested by BLC Holdings or its designee or otherwise required by
applicable law, to effect a transfer of the Facilities or the Ownership
Interests and title thereto;

            (vii) To the extent applicable, PSLT-BLC Holdings and BLC Holdings
shall apportion any costs or expense items relating to the Facilities, whether
real estate taxes, operating expenses or otherwise, taking into account that
if and to the extent that, as of the Option Closing, PSLT-BLC Holdings or any
Provident Lessor has paid any bills for any ownership expenses incurred (prior
to the Option Closing) in connection with the ownership and operation of the
Facilities and, under the terms of the Property Leases, any Brookdale Lessee
would be required to reimburse the applicable Provident Lessor for some or all
of such expenses, then at the Option Closing, BLC Holdings shall be required
to pay to PSLT-BLC Holdings, in addition to the Option Price, any such accrued
operating expenses (including, but not limited to, real estate taxes) for
which the Brookdale Lessees are responsible under the Property Leases;
provided, further, however, that PSLT-BLC Holdings or the applicable Provident
Lessors shall assign or cause to be assigned and promptly delivered, without
adjustment to the Option Price, any real estate tax, insurance or capital
expenditures impounds, escrows or reserves (other than principal reserve
escrows) which have been funded by BLC Holdings or the applicable Brookdale
Lessees and which are held by PSLT-BLC Holdings, any Provident Lessors or any
Facility Mortgagee;

            (viii) BLC Holdings shall pay any and all costs and expenses, of
any nature whatsoever, incurred in connection with the consummation of the
Purchase Option, including, without limitation, reasonable attorneys' fees (of
BLC Holdings and PSLT-BLC Holdings), any title search fees, title insurance
commitment fees, the cost of any title insurance policy, any transfer taxes,
any recording fees, mortgage or documentary taxes or stamps, any brokerage
commissions, closing or escrow fees, and survey costs. BLC Holdings
acknowledges, however, that PSLT-BLC Holdings has no obligation to deliver
title insurance (or pay any premium for

                                      34
<PAGE>

title insurance) or a survey of any of the Facilities to BLC Holdings,
provided that it shall be a condition precedent to closing that BLC Holdings
or its designee, at its election, is able to procure a title insurance policy
for each Facility insuring title in the name of BLC Holdings or its designee,
as applicable, absent of monetary liens attributable to PSLT-BLC Holdings and
the Provident Lessors (other than any Facility Mortgages);

            (ix) If BLC Holdings fails timely to perform or satisfy any of its
obligations imposed under this Paragraph 14, including, but not limited to,
its obligation to timely consummate the purchase of the Facilities (for any
reason other than a default by PSLT-BLC Holdings under this Paragraph 14),
then this Agreement and the Property Leases shall continue; provided the
Purchase Option shall terminate and be of no further force and effect, and BLC
Holdings shall reimburse PSLT-BLC Holdings for all reasonable out-of-pocket
costs and expenses incurred by PSLT-BLC Holdings and/or any Provident Lessor
as a result of BLC Holdings giving the Purchase Notice;

            (x) At all times from the date on which BLC Holdings delivers the
Purchase Notice until the Option Closing, this Agreement and the Property
Leases shall remain in full force and effect. Upon the consummation of the
Option Closing pursuant to this Paragraph 14, at the option of BLC Holdings or
its designee, (A) the Provident Lessors shall assign all of their right, title
and interest in the Property Leases, and PSLT-BLC Holdings shall assign all of
its right, title and interest in this Agreement to BLC Holdings or its
designee, as applicable, or (B) this Agreement and the Property Leases shall
be terminated by the parties except for those specific provisions which, by
their express terms, survive such a termination, provided, however, that
neither the Provident Lessors nor PSLT-BLC Holdings shall have any obligation
to assign their interests as provided in clause (A) of this Paragraph 14(b)(x)
unless BLC Holdings or its designee and the Brookdale Lessees deliver to
PSLT-BLC Holdings and the Provident Lessors a release of their respective
obligations under the Property Leases and this Agreement, in form and
substance acceptable to PSLT-BLC Holdings and the Provident Lessors; and

      (c) Appraisal Procedure. In the event that it becomes necessary to
determine the Fair Market Value of the Facilities or any Facility for any
purpose described in this Agreement and the parties cannot agree thereon, such
Fair Market Value shall be determined upon the written demand of either party
in accordance with the following procedure:

            (i) The party requesting an appraisal, by Notice given within
thirty (30) days after the date of the event that requires or permits such
procedure, shall propose and unilaterally approve an appraiser licensed to
perform MAI appraisals and experienced in the valuation of assisted living,
independent living or skilled nursing facilities (a "Qualified Appraiser").
The other party, by Notice given within fifteen (15) days after receipt of
such Notice appointing the first Qualified Appraiser, may appoint a second
Qualified Appraiser. If the other party fails to appoint the second Qualified
Appraiser within such fifteen (15) day period, such party shall have waived
its right to appoint a Qualified Appraiser, and the first Qualified Appraiser
shall make the sole determination of the Fair Market Value.

            (ii) The selected Qualified Appraiser or Appraisers shall
thereupon determine the Fair Market Value. Each such Qualified Appraiser
shall, within thirty (30) days following its appointment, submit its appraisal
of fair market value to each of PSLT-BLC

                                      35
<PAGE>

Holdings and BLC Holdings in writing, and if the fair market values set forth
in such appraisals vary by five percent (5%) or less of the greater value, the
Fair Market Value shall be determined by calculating the average of the two
fair market values determined by the two appraisers.

            (iii) If the fair market values set forth in the two appraisals
vary by more than five percent (5%) of the greater of the two values, the two
Qualified Appraisers shall select a third Qualified Appraiser within an
additional fifteen (15) days following the submittal of the last appraisal. If
the two appraisers are unable to agree upon the appointment of a third
appraiser within such fifteen (15) day period, either party may, upon written
notice to the other, request that such appointment be made by the then
President (or equivalent officer) of the Chapter of the American Institute of
Real Estate Appraisers in the Facility State, or his or her designee or, if
there is no such organization or if such individual declines to make such
appointment, by any state or Federal court of competent jurisdiction for the
Facility State.

            (iv) Within twenty (20) days following his selection, the third
appraiser shall review the two (2) appraisals and select the appraisal that he
determines most clearly reflects the Fair Market Value. The selected Fair
Market Value shall then be the Fair Market Value for purposes of this
Agreement.

            (v) In connection with the appraisal process, BLC Holdings shall
provide the appraisers full access during normal business hours to examine the
Facilities, the books, records and files of BLC Holdings and the Brookdale
Lessees and all agreements, leases and other operating agreements relating to
the Facilities. The costs of each party's appraisal shall be borne by the
selecting party and the cost of the third appraisal shall be shared equally.
Upon determining such value, the appraisers shall promptly notify PSLT-BLC
Holdings and BLC Holdings in writing of such determination. The determination
of the Qualified Appraisers made in accordance with the foregoing provisions
shall be final and binding upon the parties, such determination may be entered
as an award in arbitration in a court of competent jurisdiction, and judgment
thereon may be entered.

15.   Notices. All notices, approvals, requests, consents and other
communications ("Notices") given pursuant to this Agreement shall be in
writing and shall be deemed to have been duly given (i) when actually received
if either (A) hand delivered or (B) sent by facsimile transmission with
evidence of receipt of delivery; (ii) two (2) days after the same was
deposited in a regularly maintained receptacle for the deposit of United
States mail, sent by registered or certified mail, postage and charges
prepaid; or (iii) the next Business Day if sent via a national overnight
delivery service, addressed as follows or at such other address as either
party may specify from time to time by at least five (5) days prior Notice to
the other party of the changed address:

      If to BLC Holdings:       Brookdale Provident Properties, LLC
                                330 North Wabash Avenue
                                Suite 1400
                                Chicago, Illinois 60611
                                Attention:  R. Stanley Young
                                Telephone:  (312) 977-3720
                                Facsimile:  (312) 977-3699

                                      36
<PAGE>

      with a copy to:           Brookdale Living Communities, Inc.
                                330 N. Wabash Avenue
                                Suite 1400
                                Chicago, Illinois 60611
                                Attention:  General Counsel
                                Telephone:  (312) 977-3760
                                Facsimile:  (312) 977-3769

      and to:                   Burke, Warren, MacKay & Serritella, P.C.
                                330 North Wabash Avenue, 22nd Floor
                                Chicago, Illinois 60611
                                Attention:  Douglas E. Wambach, Esq.
                                Telephone:  (312) 840-7019
                                Facsimile:  (312) 840-7900

      If to PSLT-BLC Holdings:  PSLT-BLC Properties Holdings, LLC
                                c/o Provident Senior Living Trust
                                600 College Road East, Suite 3400
                                Princeton, New Jersey  08540
                                Attention:  General Counsel
                                Telephone:  (609) 720-0825
                                Facsimile:  (609) 720-0826

      with a copy to:           Sidley Austin Brown & Wood LLP
                                787 Seventh Avenue
                                New York, New York 10019
                                Attention:  Scott Freeman, Esq.
                                Telephone:  (212) 839-7358
                                Facsimile:  (212) 839-5599

16.   No Waiver. No course of dealing between PSLT-BLC Holdings and BLC
Holdings, or any delay or omission of PSLT-BLC Holdings or BLC Holdings to
insist upon a strict performance of any term or condition of this Agreement
shall be deemed a waiver of any right or remedy that such party may have, and
shall not be deemed a waiver of any subsequent breach of such term or
condition.

17.   Invalidity. If any provision of this Agreement shall be declared invalid
or unenforceable, the remainder of this Agreement shall continue in full force
and effect.

18.   Counterparts. This Agreement may be executed in two (2) or more
counterparts, which taken together shall be deemed one (1) original.

19.   Cumulative. All rights and remedies of PSLT-BLC Holdings and BLC Holdings
herein shall be cumulative and none shall be exclusive of any other or of any
rights and remedies allowed by law.

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<PAGE>

20.   Governing Law. Except as to matters regarding the internal affairs of
PSLT-BLC Holdings and issues of or limitations on any personal liability of
the members or managers of PSLT-BLC Holdings for obligations of PSLT-BLC
Holdings, as to which the laws of the State of Delaware shall govern, this
Agreement shall be interpreted, construed, applied and enforced in accordance
with the laws of the State of New York applicable to contracts between
residents of New York which are to be performed entirely within New York,
regardless of (i) where this Agreement is executed or delivered; or (ii) where
any payment or other performance required by this Agreement is made or
required to be made; or (iii) where any breach of any provision of this
Agreement occurs, or any cause of action otherwise accrues; or (iv) where any
action or other proceeding is instituted or pending; or (v) the nationality,
citizenship, domicile, principle place of business, or jurisdiction of
organization or domestication of any party; or (vi) whether the laws of the
forum jurisdiction otherwise would apply to the laws of a jurisdiction other
than the State of New York; or (vii) any combination of the foregoing.
Notwithstanding the foregoing, the laws of the applicable Facility State shall
apply to the perfection and priority of liens upon and the disposition of and
the exercise of any remedies by PSLT-BLC Holdings under this Agreement with
respect to any Facility.

21.   Successors and Assigns; Relationship. The covenants, terms, conditions,
provisions, and undertakings in this Agreement shall extend to and be binding
upon the permitted successors, and assigns of the respective parties hereto,
and shall be construed as covenants running with the land. This Agreement does
not create a partnership, joint venture, or other type of ownership
inconsistent with the Agreement, and neither PSLT-BLC Holdings or BLC Holdings
shall make any representation to the contrary.

22.   Entire Agreement. Except for the provisions contained in the Property
Leases, this Agreement, together with any exhibits attached hereto, contains
the entire agreement and understanding between the parties with respect to the
subject matter hereof and of the Property Leases. There are no oral
understandings, terms, or conditions, and neither party has relied upon any
representation, express or implied, with respect to the subject matter hereof
not contained in this Agreement and/or the Property Leases. All prior
understandings, terms, or conditions with respect to the subject matter hereof
are deemed merged in this Agreement. This Agreement cannot be changed or
supplemented orally, but may be modified or amended only by a written
instrument executed by the parties. Any disputes regarding the interpretation
of any portion of this Agreement shall not be presumptively construed against
the drafting party.

23.   Survival. BLC Holdings' indemnity obligations herein shall survive
termination of this Agreement for a period of one (1) year.

24.   Time. Time is of the essence in every particular of this Agreement,
including, without limitation, obligations for the payment of money.

25.   Captions and Headings. The captions and headings in this Agreement have
been inserted herein only as a matter of convenience and for reference and in
no way define, limit or describe the scope or intent of, or otherwise affect,
the provisions of this Agreement.

26.   Waiver of Jury Trial. TO THE EXTENT ALLOWED BY APPLICABLE LAW, BLC
HOLDINGS AND PSLT-BLC HOLDINGS HEREBY KNOWINGLY, VOLUNTARILY AND

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<PAGE>

INTENTIONALLY WAIVE THE RIGHT EITHER OF THEM OR THEIR HEIRS, PERSONAL
REPRESENTATIVES, SUCCESSORS OR ASSIGNS MAY HAVE TO A TRIAL BY JURY IN RESPECT
TO ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR ANY OTHER AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT TO
PSLT-BLC HOLDINGS' ENTERING INTO THIS AGREEMENT.

27.   Guaranty. At the time of BLC Holdings' execution of this Agreement, BLC
Holdings shall obtain the execution of the Guaranty of Agreement Regarding
Leases in the form of Exhibit D attached hereto ("Guaranty") by Guarantor. As
a condition to BLC Holdings' exercise of either Renewal Term and accompanying
notice of such exercise, BLC Holdings shall deliver to PSLT-BLC Holdings an
affirmation of the Guaranty executed by the Guarantor.

28.   Termination of Facility Management Agreements.

      (a) Management Termination Event. If any one or more of the following
occurs (each, a "Management Termination Event"), PSLT-BLC Holdings shall have
the right to cause BLC Holdings and the Brookdale Lessees to terminate all or
any of the Facility Management Agreements, subject to the rights of any
Facility Mortgagee:

            (i) if the Brookdale Lessees shall fail to pay Rent (as defined in
the Property Leases) under their respective Property Leases and BLC Holdings
fails to make the Brookdale Rent Payments hereunder and such failure continues
for thirty (30) days after the due date of such payments;

            (ii) if the Facilities fail to maintain on a quarterly basis a
Lease Coverage Ratio (assuming payment of a management fee equal to three
percent (3%) of gross revenues and the expenditure by the Brookdale Lessees of
the Minimum Capital Additions Amount per Lease Year), calculated on a
quarterly basis, of (A) at least 1.05 to 1.00 on an aggregate basis during any
of the fifth (5th) through seventh (7th) Lease Years, (B) at least 1.10 to
1.00 on an aggregate basis during any of the eighth (8th) through twelfth
(12th) Lease Years, and (C) at least 1.15 to 1.00 during any of the thirteenth
(13th) through fifteenth (15th) Lease Years and during each Renewal Term;
provided, however, that BLC Holdings or Brookdale Management may, at its
option, cure such Management Termination Event by depositing with PSLT-BLC
Holdings cash or a Letter of Credit in an amount sufficient to increase on a
dollar-for-dollar basis the NOI reflected in the numerator in the calculation
of Lease Coverage Ratio, such that BLC Holdings satisfies the Lease Coverage
Ratio requirements set forth in this Paragraph; provided, further, however,
that BLC Holdings and Brookdale Management may only exercise such cure right
during the first (1st) through tenth (10th) Lease Years and only two (2) times
thereafter during the Initial Term. No cure right shall exist during any
Renewal Term;

            (iii) subject to the provisions of clause (i) above, if an Event
of Default (as defined in the Property Leases) shall have occurred and remains
uncured under any of the Property Leases or if an Event of Default shall have
occurred and remains uncured under this Agreement;

                                      39
<PAGE>

            (iv) Intentionally Deleted;

            (v) Intentionally Deleted; or

            (vi) if (w) Brookdale Management or any Related Party of Brookdale
Management which becomes the Manager (as defined in the Property Leases) with
respect to any of the Facilities (as used in this clause (vi), a "Brookdale
Successor Manager"), becomes bankrupt or insolvent, or files any debtor
proceedings, or files pursuant to any statute a petition in bankruptcy or
insolvency or for reorganization, or files a petition for the appointment of a
receiver or trustee for all or substantially all of its assets, or (x) any of
the foregoing are filed against Brookdale Management or against any Brookdale
Successor Manager, and such petition or appointment shall not have been set
aside within ninety (90) days from the date of such petition or appointment,
or (y) Brookdale Management or any Brookdale Successor Manager makes an
assignment for the benefit of creditors or shall admit in writing its
inability to pay its debts generally as they become due, or (z) Brookdale
Management's or any Brookdale Successor Manager's interest in all or portion
of the Total Revenues is attached, levied upon, seized or made subject to any
other judicial seizure and such seizure or attachment is not discharged within
ninety (90) days.

      (b) Remedies. Subject to the rights of any Facility Mortgagee, in the
event of any Management Termination Event, PSLT-BLC Holdings shall have the
right to cause BLC Holdings and the Brookdale Lessees to terminate all or any
of the Facility Management Agreements and replace Brookdale Management at such
Facility(ies) as are designated by PSLT-BLC Holdings with a manager selected
by PSLT-BLC Holdings, and BLC Holdings shall cause the Brookdale Lessees to
enter into new management agreements, acceptable to any Facility Mortgagee,
with such replacement manager on terms and conditions reasonably satisfactory
to PSLT-BLC Holdings; provided, however, that any new management agreement
shall provide that, upon the exercise by BLC Holdings of its Purchase Option
as provided in Paragraph 14 hereof, such replacement management agreement
shall automatically terminate without payment of any termination fee or
penalty by BLC Holdings. BLC Holdings shall cause the Brookdale Lessees to pay
such replacement manager the management fee pursuant to the applicable
management agreement entered into between such replacement manager and each
Brookdale Lessee, provided that the applicable Brookdale Lessees shall be
entitled to a credit against Base Rent payable under the applicable Property
Lease for any payments (excluding out-of-pocket reimbursements) payable to
such replacement manager in excess of an amount equal to five percent (5%) of
gross revenues.

      (c) Brookdale Termination Right. If PSLT-BLC Holdings terminates the
Facility Management Agreements and replaces Brookdale Management with a
manager other than Brookdale Management or any Affiliates of Brookdale
Management, BLC Holdings shall have the right to cause the Brookdale Lessees
to terminate those Property Leases for Facilities as to which the Facility
Management Agreements have been terminated and with respect to which a
replacement manager has been appointed. In the event of such termination, all
references to the "Facilities" and the "Property Leases" under this Agreement
shall be deemed to exclude those Facilities as to which the Brookdale Lessees
have terminated the Property Leases, and the Master Rent payable hereunder
shall be adjusted by excluding from the calculation of Master Rent the amount
of Base Rent due under any such terminated Property Lease. BLC Holdings may

                                      40
<PAGE>

exercise such termination right, if at all, by providing PSLT-BLC Holdings
written Notice thereof not later than thirty (30) days after termination of
the applicable Facility Management Agreement (time being of the essence with
respect to such date). Such termination shall become effective on the date
(the "Termination Date") that is one hundred twenty (120) days following
delivery of such written Notice to PSLT-BLC Holdings, provided that the
applicable Property Leases shall not terminate, and BLC Holdings' exercise of
such termination right shall be deemed to be null and void, if PSLT-BLC
Holdings reinstates Brookdale Management or appoints an Affiliate of Brookdale
Management to manage the Facilities within such one hundred twenty (120) day
period. If any of the Property Leases are terminated as a result of BLC
Holdings' exercise of its termination right as set forth herein, (i) BLC
Holdings shall cause the applicable Brookdale Lessees to comply with the
provisions of Paragraph 10 of the Property Leases pursuant to which the
applicable Brookdale Lessee shall cooperate with the applicable Provident
Lessor in obtaining all necessary licensing, operating permits and other
governmental authorizations which may be necessary for the operation of the
Facilities, and (ii) BLC Holdings shall cause the applicable Brookdale Lessees
to promptly transfer to the applicable Provident Lessors or their nominees all
of the third party residency agreements with respect to units located at the
Facilities and all other subleases for space at the Facilities.

29.   Joinder by Brookdale Management. Brookdale Management has joined into
this Agreement for the limited purposes of (i) acknowledging that in each of
the Facility Management Agreements, PSLT-BLC Holdings and BLC Holdings are
intended third party beneficiaries of such Facility Management Agreements;
(ii) acknowledging and hereby granting to PSLT-BLC Holdings the right to
terminate any or all of the Facility Management Agreements upon the occurrence
and during the continuation of any Management Termination Event as set forth
in this Agreement (subject to any applicable notice and cure rights as set
forth herein), and (iii) acknowledging and authorizing, to the extent required
by applicable law, that payments due to Brookdale Management are hereby
subordinated to the Brookdale Rent Payments or any other payments required
hereunder, and that any amounts paid to Brookdale Management following and
during the continuance of an Event of Default under this Agreement shall be
paid to PSLT-BLC Holdings upon demand therefor, without offset, abatement,
demand or deduction. All payments made by BLC Holdings or any Brookdale Lessee
or any of their Affiliates to Brookdale Management shall be deemed to be made
in trust, to be retained by Brookdale Management and released from trust for
any period in question only upon payment of all amounts due PSLT-BLC Holdings
hereunder for the same period.

30.   Joinder by Brookdale Lessees. Each of the Brookdale Lessees has joined
into this Agreement for the limited purposes of (i) acknowledging that if an
Event of Default (as defined in the applicable Property Lease) has occurred
and is continuing, PSLT-BLC Holdings shall have the right to exercise its
remedies as set forth herein; (ii) acknowledging and hereby granting to
PSLT-BLC Holdings the right to terminate any or all of the Facility Management
Agreements upon the occurrence and during the continuation of any Management
Termination Event as set forth in this Agreement (subject to any applicable
notice and cure rights as set forth herein), (iii) acknowledging and
authorizing, to the extent required by applicable law, that payments due to
Brookdale Management are hereby subordinated to the Brookdale Rent Payments or
any other payments required hereunder, and that any amounts paid to Brookdale
Management following and during the continuance of an Event of Default under
this Agreement shall be paid to PSLT-BLC Holdings upon demand therefor,
without offset, abatement, demand or deduction,

                                      41
<PAGE>

and (iv) acknowledging the provisions of Paragraph 3(b) hereof with respect to
the right of BLC Holdings to exercise the Renewal Terms and agreeing that any
exercise of the applicable Renewal Term(s) by BLC Holdings in accordance with
the terms of Paragraph 3(b) hereof shall be binding upon the Brookdale Leases
and shall constitute an exercise of such Renewal Term(s) in accordance with
the terms of Paragraph 4(b) of each of the Property Leases. All payments made
by any Brookdale Lessee or any of their Affiliates to Brookdale Management
shall be deemed made in trust, to be retained by Brookdale Management and
released from trust for any period in question only upon payment of all
amounts due PSLT-BLC Holdings hereunder for the same period.

31.   Joinder by Provident Lessors. Each of the Provident Lessors has joined
into this Agreement for the limited purpose of acknowledging the provisions of
Paragraph 3(b) hereof with respect to the right of BLC Holdings to exercise
the Renewal Terms and agreeing that any exercise of the applicable Renewal
Term(s) by BLC Holdings in accordance with the terms of Paragraph 3(b) hereof
shall constitute an exercise by the Brookdale Lessees of such Renewal Term(s)
in accordance with the terms of Paragraph 4(b) of the Property Leases.

32.   Intentionally Deleted.

33.   Security Deposit.

      (a) Security Deposit/Letter of Credit. BLC Holdings shall, upon the
execution of this Agreement by BLC Holdings, either (i) cause to be deposited
with PSLT-BLC Holdings cash in the amount of the Security Amount (the
"Security Deposit"), or (ii) cause to be delivered to PSLT-BLC Holdings a
letter of credit (the "Letter of Credit") issued in favor of PSLT-BLC Holdings
in the amount of the Security Amount, as security for the performance and
observance by BLC Holdings of the terms, conditions and provisions of this
Agreement and as security for the performance and the observance by each of
the Brookdale Lessees of the terms, conditions and provisions of the Property
Leases, including, without limitation, the surrender of possession of the
Facilities by the Brookdale Lessees as provided in the Property Leases. Upon
the occurrence and during the continuance of an Event of Default, PSLT-BLC
Holdings may draw upon the Letter of Credit or apply any portion of the
Security Deposit to the extent required for the payment of any sum as to which
BLC Holdings or the Brookdale Lessee(s) under the Property Lease(s) to which
the applicable Event of Default relates is in default or for any sum which
PSLT-BLC Holdings may have expended or may be required to expend by reason of
the occurrence of such Event of Default, including any damages or deficiency
accrued before or after summary proceedings or other re-entry by any Provident
Lessor pursuant to any Property Lease. Subject to the provisions of Paragraph
10(b) hereof, if PSLT-BLC Holdings draws upon the Letter of Credit and applies
or retains any portion or all of the sum received upon such draw, or applies
any portion of the Security Deposit, BLC Holdings shall forthwith take such
action as is necessary to restore the face amount of the Letter of Credit to
the Security Amount or pay any deficiency to PSLT-BLC Holdings such that the
Security Deposit is at all times equal to the Security Amount. The Security
Deposit shall be held in a segregated bank account and shall be invested in
Permitted Investments. BLC Holdings or the party posting the Security Deposit
in accordance with the terms and conditions set forth in Paragraph 33(d) below
shall be responsible for payment of any federal, state or local income or
other tax applicable to income earned from Permitted Investments. All interest
accruing on the Security Deposit shall be held by PSLT-BLC

                                      42
<PAGE>

Holdings for the account of BLC Holdings or such other party posting the
Security Deposit, and shall be distributed to BLC Holdings or such other party
on the fifteenth (15th) day after the end of each Lease Year.

      (b) Letter of Credit Requirements. The Letter of Credit shall be an
irrevocable, unconditional letter of credit with an initial term of not less
than one year from the Commencement Date of this Agreement. Without further
act or instrument required by PSLT-BLC Holdings, the Letter of Credit shall be
automatically renewed for successive one year periods throughout the remainder
of the Term unless, not less than 30 days prior to the then current expiration
date of the Letter of Credit with such reduction in the amount thereof as
permitted under Paragraph 10(b), the issuing bank notifies PSLT-BLC Holdings
of its intention not to renew the Letter of Credit. The Letter of Credit (or
any renewal, extension or replacement thereof) shall continue in full force
and effect and shall be maintained in its full face amount for two full
calendar months beyond the expiration of the Term of this Agreement (including
any extension of the Term hereof). The Letter of Credit shall (i) be
negotiable and freely transferable in connection with a sale or transfer of
the Facilities or the interests in the Provident Lessors; (ii) be issued by a
national banking association reasonably acceptable to PSLT-BLC Holdings; (iii)
provide for payment of all or any portion of the face amount of the Letter of
Credit to PSLT-BLC Holdings upon the receipt by the issuing bank of a
statement signed by a representative of PSLT-BLC Holdings that PSLT-BLC
Holdings is entitled to such amount pursuant to the terms of this Agreement,
and (iv) be otherwise in form and substance reasonably satisfactory to
PSLT-BLC Holdings. PSLT-BLC Holdings' receipt of notice from the issuing bank
of its intention not to renew the Letter of Credit or BLC Holdings' failure to
deliver a renewal or replacement Letter of Credit shall entitle PSLT-BLC
Holdings to draw the full face amount of the Letter of Credit and retain such
sum as security hereunder in lieu of the Letter of Credit. BLC Holdings'
failure to maintain the Letter of Credit or to substitute a cash security
deposit as a replacement therefor shall constitute a default under this
Agreement.

      (c) Return of Security Deposit. In addition to the provisions of
Paragraph 10(b) hereof, if the Facilities maintain a Lease Coverage Ratio at
least equal to 1.10 to 1.00 on an aggregate basis for twelve (12) consecutive
months (assuming payment of a management fee equal to three percent (3%) of
gross revenues and an annual capital reserve equal to $400 per residential
unit) the Security Amount shall be reduced to $10,000,000, and PSLT-BLC
Holdings shall, as applicable, (i) cause the applicable amount of the Security
Deposit to be promptly returned to the party entitled thereto or (ii)
cooperate with the party posting the deposit, to allow such party to replace
the Letter of Credit, or cause a reduction in the face amount of the Letter of
Credit, such that the face amount of the Letter of Credit shall be
$10,000,000. If the Facilities maintain a Lease Coverage Ratio at least equal
to 1.15 to 1.00 on an aggregate basis for twelve (12) consecutive months
(assuming payment of a management fee equal to three percent (3%) of gross
revenues and an

                                      43
<PAGE>

annual capital reserve equal to $400 per residential unit) the Security Amount
shall be reduced to $5,000,000, and PSLT-BLC Holdings shall, as applicable,
(i) cause the applicable amount of the Security Deposit to be promptly
returned to the party entitled thereto or (ii) cooperate with the party
posting the deposit, to allow such party to replace the Letter of Credit, or
cause a reduction in the face amount of the Letter of Credit, such that the
face amount of the Letter of Credit shall be $5,000,000. If the Facilities
maintain a Lease Coverage Ratio at least equal to 1.20 to 1.00 on an aggregate
basis for twelve (12) consecutive months (assuming payment of a management fee
equal to three percent (3%) of gross revenues and an annual capital reserve
equal to $400 per residential unit), the Security Deposit or any Letter of
Credit, as the case may be, shall be promptly returned to BLC Holdings. If the
Security Deposit or the Letter of Credit, as the case may be, shall not be
returned to BLC Holdings in accordance with the foregoing sentence, but BLC
Holdings shall have paid and performed all of the terms of this Agreement and
all the Brookdale Lessees shall have paid and performed all of the terms of
their respective Property Leases, the remaining portions of the Security
Deposit or the Letter of Credit, as the case may be, shall be returned to BLC
Holdings within twenty (20) Business Days after the expiration of the Term or
sooner termination of this Agreement (other than a termination which results
from an Event of Default).

      (d) Affiliates. Either Guarantor or Fortress may post the Security
Deposit on behalf of BLC Holdings, and the party posting the Security Deposit
shall be entitled to the return thereof and the receipt of income thereon, in
each case, in accordance with the terms and conditions set forth in this
Paragraph 33. If a third party posts the Security Deposit on behalf of BLC
Holdings, such party and BLC Holdings shall deliver a joint letter (the
"Direction Letter") to PSLT-BLC Holdings on the date of execution of this
Agreement in form and substance reasonably satisfactory to PSLT-BLC Holdings,
directing PSLT-BLC Holdings that PSLT-BLC Holdings may, if requested by BLC
Holdings pursuant to Paragraph 10(b) hereof, apply portions of the Security
Deposit in accordance with Paragraph 10(b) only for the use contemplated
thereunder, and acknowledging that if any portions of the Security Deposit are
made available to BLC Holdings in accordance with the provisions of Paragraph
10(b), then (i) if Fortress posts the Security Deposit, such funds shall be
deemed to have been released to Fortress and simultaneously loaned from
Fortress to Guarantor and contributed by Guarantor to BLC Holdings as a
capital contribution, and (ii) if Guarantor posts the Security Deposit, such
funds shall be deemed to have been released to Guarantor and simultaneously
contributed by Guarantor to BLC Holdings as a capital contribution, in each
case, to be used solely for the purpose set forth in Paragraph 10(b). The
Direction Letter shall also provide that, notwithstanding the fact a party
other than BLC Holdings posts the Security Deposit as permitted under this
Paragraph 33(d), in no event shall any party other than BLC Holdings be
entitled to the receipt of funds disbursed in accordance with Paragraph 10(b)
of this Agreement, and agreeing that BLC Holdings shall use such funds only
for the purpose contemplated by Paragraph 10(b) hereof. BLC Holdings hereby
agrees to indemnify PSLT-BLC Holdings from and against any and all
liabilities, losses, costs or expenses which PSLT-BLC Holdings or any of its
members, managers, officers, directors, shareholders or employees may sustain
as a result of the non-compliance by BLC Holdings or the party posting the
Security Deposit with the provisions of the immediately preceding sentence.
The foregoing shall not limit the rights of the party posting the Security
Deposit to receive the return of any unapplied portion of the Security Deposit
in accordance with the provisions of Paragraph 33(c).

34.   Public Offering Information. BLC Holdings specifically agrees that
PSLT-BLC Holdings may include financial information and information concerning
BLC Holdings, the Brookdale Lessees, Guarantor and the operation of the
Facilities that does not violate the confidentiality of the facility-resident
relationship and the physician-resident privilege under applicable laws, in
offering memoranda or prospectuses, or similar publications in connection with
syndications, private placements or public offerings of PSLT-BLC Holdings' (or
PSLT-BLC Holdings' Parent's) securities or interests, and any other reporting
requirements under applicable federal and state laws, including those of any
successor to PSLT-BLC

                                      44
<PAGE>

Holdings. BLC Holdings agrees to provide such other reasonable information
necessary with respect to BLC Holdings, the Brookdale Lessees and the
Facilities to facilitate a private placement or public offering or to satisfy
the SEC or regulatory disclosure requirements. BLC Holdings agrees to cause
its independent accountants, at PSLT-BLC Holdings' cost, to consent to the
inclusion of their audit report issued with respect to such financial
statements in any registration statement or other filing under federal and
state laws and to provide the underwriters participating in any offering of
securities or interests of PSLT-BLC Holdings (or PSLT-BLC Holdings' Parent)
with a standard accountant's "comfort" letter with regard to the financial
information of BLC Holdings included or incorporated by reference into any
prospectus or other offering document. BLC Holdings also agrees to make
available to any underwriter participating in an offering of PSLT-BLC
Holdings' (or PSLT-BLC Holdings' Parent's) securities or interests, and any
attorney, accountant or other agent or representative retained by an
underwriter (an "Inspector"), all financial and other records and pertinent
corporate documents of BLC Holdings as shall be reasonably necessary to enable
them to exercise their due diligence responsibility, and cause BLC Holdings'
directors, officers and employees to supply all information requested by any
such Inspector in connection with such offering. Prior to submission or
circulation of any such offering memoranda, prospectuses or similar
publications, PSLT-BLC Holdings shall provide to BLC Holdings copies of such
documents for the purpose of reviewing same. Upon request of PSLT-BLC
Holdings, BLC Holdings shall notify PSLT-BLC Holdings of any necessary
corrections to information PSLT-BLC Holdings proposes to publish within a
reasonable period of time (not to exceed three (3) Business Days) after being
informed thereof by PSLT-BLC Holdings.

35.   Right of First Offer to Lease.

      (a) Right of First Offer. Provided no Event of Default or Management
Termination Event hereunder exists, if at any time (and from time to time)
during the Initial Term, PSLT-BLC Holdings, Provident or any Subsidiary of
Provident shall acquire a senior independent living facility, other than a
facility which is to be leased back to the seller of such facility (or its
affiliate) (each, a "First Offer Facility"), PSLT-BLC Holdings shall notify
BLC Holdings (a "First Offer Availability Notice") describing such First Offer
Facility and its anticipated date of availability. The First Offer
Availability Notice (i) shall contain PSLT-BLC Holdings' or Provident's good
faith estimate of the rental amount and other lease terms for which PSLT-BLC
Holdings or Provident would be willing to lease the First Offer Facility on a
"triple-net" basis under a lease agreement substantially similar to each of
the Property Leases and (ii) shall, except to the extent that PSLT-BLC
Holdings is restricted under the terms of a confidentiality agreement from
disclosing such information to BLC Holdings, include such other due diligence
information that Provident or its Subsidiaries may actually have in their
possession at the time the First Offer Availability Notice is delivered. BLC
Holdings shall have the right (the "Right of First Offer") to lease such First
Offer Facility upon the terms set forth in the First Offer Availability Notice
by delivering to PSLT-BLC Holdings a notice (a "First Offer Acceptance")
exercising its Right of First Offer with respect to such First Offer Facility
within ten (10) Business Days after receipt of the First Offer Availability
Notice. If BLC Holdings delivers the First Offer Acceptance as provided
herein, then, provided no Event of Default or Management Termination Event
exists hereunder as of the date of the closing of the Right of First Offer,
simultaneously with PSLT-BLC Holdings' consummation of the acquisition of the
First Offer Facility, PSLT-BLC Holdings and BLC Holdings shall enter into a
property lease

                                      45
<PAGE>

agreement with respect to the First Offer Facility substantially in the form
of the Property Leases (with such revisions as are mutually acceptable to the
parties), provided that Base Rent payable thereunder and the other lease terms
shall be as set forth in the First Offer Availability Notice. If BLC Holdings
fails to provide the First Offer Acceptance as provided herein (time being of
the essence with respect to such date), BLC Holdings shall be deemed to have
waived its right of first offer with respect to such First Offer Facility and
PSLT-BLC Holdings may lease the First Offer Space to any party upon such terms
as PSLT-BLC Holdings determines in its sole and absolute discretion. If BLC
Holdings does not deliver the First Offer Acceptance within the time frame set
forth above, BLC Holdings agrees that BLC Holdings shall no longer have any
contractual right to lease the First Offer Facility; provided, however, that
PSLT-BLC Holdings agrees that, during its efforts to find a tenant for the
First Offer Facility, PSLT-BLC Holdings shall keep BLC Holdings reasonably
apprised of PSLT-BLC Holdings' marketing materials and shall provide to BLC
Holdings copies of written marketing materials prepared by PSLT-BLC Holdings
in connection with such efforts (provided that BLC Holdings agrees to enter
into confidentiality agreements requested by PSLT-BLC Holdings as a condition
to receiving confidential information about the First Offer Facility); and,
provided, further, that PSLT-BLC Holdings' obligation under this sentence
shall terminate and expire at such time as PSLT-BLC Holdings enters into an
exclusivity agreement with any prospective purchaser or tenant of the First
Offer Facility.

      (b) No Assignment. The Right of First Offer is personal to BLC Holdings
and may not be assigned or transferred in connection with any Change of
Control (other than an Equity Transfer or Affiliate Transfer) or other
assignment of this Agreement or any Property Lease, except that the Right of
First Offer may be exercisable by Affiliates of BLC Holdings. In the event of
any Change of Control (other than an Equity Transfer or Affiliate Transfer),
whether with or without Landlord's consent, and whether directly or
indirectly, the Right of First Offer shall be null and void and no such
assignee or sublessee shall have any right whatsoever to receive any First
Offer Availability Notice or at any time to exercise the Right of First Offer.

      (c) Joinder by Provident. Provident hereby joins into this Agreement for
the limited purposes set forth in this Paragraph 35 to acknowledge and agree
to its obligation and the obligations of its Subsidiaries, including, without
limitation, PSLT-BLC Holdings, with respect to any First Offer Facility
acquired by Provident, PSLT-BLC Holdings or any Subsidiary of Provident, and
hereby agrees that it shall, and shall cause PSLT-BLC Holdings and Provident's
Subsidiaries, to comply with the provisions of this Paragraph 35 with respect
to any such First Offer Facility.

36.   Special Purpose Entity Covenants of BLC Holdings.

      (a) Until (i) this Agreement and all of the Property Leases have expired
or otherwise have terminated and (ii) all amounts due and owing to PSLT-BLC
Holdings under this Agreement and to the Provident Lessors under the Property
Leases have been paid in full, BLC Holdings hereby represents, warrants and
covenants that BLC Holdings is, shall be and shall continue to be a Special
Purpose Entity.

      (b) As used in this Agreement, "Special Purpose Entity" shall mean a
limited liability company which at all times on and after the date hereof:

                                      46
<PAGE>

            (i) is organized solely for the purpose of owning 100% of the
limited liability company interests in each of the Brookdale Lessees and
transacting lawful business that is incident, necessary and appropriate to
accomplish the foregoing;

            (ii) is not engaged and will not engage in any business unrelated
to the ownership of 100% of the limited liability company interests in each of
the Brookdale Lessees and transacting lawful business that is incident,
necessary and appropriate to accomplish the foregoing;

            (iii) does not have and will not have any assets other than those
related to its limited liability company interest in the Brookdale Lessees;

            (iv) has not engaged, sought or consented to and will not engage
in, seek or consent to any dissolution, winding up, liquidation,
consolidation, merger, sale of all or substantially all of its assets,
transfer of membership interests or amendment of its certificate of formation
and operating agreement with respect to the matters set forth in this
definition;

            (v) has at least two Independent Directors (or if an Independent
Director resigns, dies, is removed or is otherwise unable to serve, the other
directors or such entity's members shall promptly act to fill the vacancy
thereby created with another Independent Director) and has not caused or
allowed and will not cause or allow the board of directors of such entity to
take any action requiring the unanimous affirmative vote of one hundred
percent (100%) of the board of directors unless two Independent Directors
shall have participated in such vote, and, if the Special Purpose Entity is a
limited liability company with only one member, has at least one springing
member that will become the member of such entity upon the dissolution of the
existing member;

            (vi) has a certificate of formation and/or an operating agreement
that provides that it will not: (A) dissolve, merge, liquidate, consolidate;
(B) sell all or substantially all of its assets or the assets of the Brookdale
Lessees; (C) engage in any other business activity, or amend its
organizational documents with respect to the matters set forth in this
definition without the consent of PSLT-BLC Holdings; or (D) without the
affirmative vote of two Independent Directors and of all its other directors,
file a bankruptcy or insolvency petition or otherwise institute insolvency
proceedings with respect to itself or to any other entity in which it has a
direct or indirect legal or beneficial ownership interest;

            (vii) is solvent and will pay its debts and liabilities
(including, as applicable, shared personnel and overhead expenses) from its
assets as the same shall become due, and is maintaining and will maintain
adequate capital for the normal obligations reasonably foreseeable in a
business of its size and character and in light of its contemplated business
operations;

            (viii) has not failed and will not fail to correct any known
misunderstanding regarding the separate identity of such entity;

            (ix) has maintained and will maintain its accounts, books and
records separate from any other Person and will file its own tax returns,
except to the extent that it is required to file consolidated tax returns by
law;

                                      47
<PAGE>

            (x) has maintained and will maintain its own records, books,
resolutions and agreements;

            (xi) has not commingled and will not commingle its funds or assets
with those of any other Person and has not participated and will not
participate in any cash management system with any other Person other than the
Brookdale Lessees after the Brookdale Lessees' receipt of funds from their
respective operations and their disbursement thereof to BLC Holdings;

            (xii) has held and will hold its assets in its own name;

            (xiii) has conducted and will conduct its business in its name or
in a name franchised or licensed to it by an entity other than its Affiliate,
except for services rendered under a management agreement with an Affiliate
that complies with the terms contained in subparagraph (xxvii) below, so long
as the manager, or equivalent thereof, under such management agreement holds
itself out as an agent of BLC Holdings;

            (xiv) has maintained and will maintain its financial statements,
accounting records and other entity documents separate from any other Person
and has not permitted and will not permit its assets to be listed as assets on
the financial statement of any other entity except as required by GAAP;
provided, however, that any such consolidated financial statement shall
contain a note indicating that its separate assets and liabilities are neither
available to pay the debts of the consolidated entity nor constitute
obligations of the consolidated entity;

            (xv) has paid and will pay its own liabilities and expenses, and
has not had and will not have any employees;

            (xvi) has observed and will observe all partnership, corporate or
limited liability company formalities, as applicable;

            (xvii) has and will have no indebtedness other than its
obligations under this Agreement;

            (xviii) has not and will not assume or guarantee or become
obligated for the debts of any other Person or hold out its credit as being
available to satisfy the obligations of any other Person except for those
certain Lease Guaranties executed in connection with the Property Leases and
its obligations under Paragraph 4 and Paragraph 7 hereof;

            (xix) has not and will not acquire obligations or securities of
its partners, members or shareholders or any other Affiliate except the
Brookdale Lessees;

            (xx) has allocated and will allocate fairly and reasonably any
overhead expenses that are shared with any Affiliate, including, but not
limited to, paying for shared office space and services performed by any
employee of an Affiliate;

            (xxi) maintains and uses and will maintain and use separate
stationery, invoices and checks bearing its name. The stationery, invoices,
and checks utilized by BLC Holdings or utilized to collect its funds or pay
its expenses shall bear its own name and shall not

                                      48
<PAGE>

bear the name of any other entity unless such entity is clearly designated as
being BLC Holdings' agent;

            (xxii) has not pledged and will not pledge its assets for the
benefit of any other Person;

            (xxiii) has held itself out and identified itself and will hold
itself out and identify itself as a separate and distinct entity under its own
name or in a name franchised or licensed to it by an entity other than an
Affiliate of BLC Holdings and not as a division or part of any other Person,
except for services rendered under a management agreement with an Affiliate
that complies with the terms contained in subparagraph (xxvii) below, so long
as the manager, or equivalent thereof, under such management agreement holds
itself out as an agent of BLC Holdings;

            (xxiv) has maintained and will maintain its assets in such a
manner that it will not be costly or difficult to segregate, ascertain or
identify its individual assets from those of any other Person;

            (xxv) has not made and will not make loans to any Person or hold
evidence of indebtedness issued by any other Person or entity (other than cash
and investment-grade securities issued by an entity that is not an Affiliate
of or subject to common ownership with such entity);

            (xxvi) has not identified and will not identify its partners,
members or shareholders, or any Affiliate of any of them, as a division or
part of it, and has not identified itself and shall not identify itself as a
division of any other Person;

            (xxvii) has not entered into or been a party to, and will not
enter into or be a party to, any transaction with its partners, members,
shareholders or Affiliates except in the ordinary course of its business and
on terms which are intrinsically fair, commercially reasonable and are no less
favorable to it than would be obtained in a comparable arm's-length
transaction with an unrelated third party;

            (xxviii) has not and will not have any obligation to, and will
not, indemnify its partners, officers, directors or members, as the case may
be, unless such an obligation is fully subordinated to the amounts due under
this Agreement and the amounts due under the Property Leases, and will not
constitute a claim against it in the event that cash flow in excess of the
amount required to pay the foregoing amounts is insufficient to pay such
obligation;

            (xxix) does not and will not have any of its obligations
guaranteed by any Affiliate other than the Guaranty; and

            (xxx) has complied and will comply with all of the terms and
provisions contained in its organizational documents. The statement of facts
contained in its organizational documents are true and correct and will remain
true and correct.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      49
<PAGE>

      IN WITNESS WHEREOF, the parties have hereunto executed this Agreement
the day and year first above written.

                              PSLT-BLC HOLDINGS:
                              -----------------

                              PSLT-BLC PROPERTIES HOLDINGS, LLC,
                              a Delaware limited liability company

                              By:  PSLT OP, L.P.,
                                   a Delaware limited partnership,
                                   its sole member

                                   By:  PSLT GP, LLC,
                                        a Delaware limited liability company,
                                        its sole general partner

                                        By:  Provident Senior Living Trust, a
                                             Maryland real estate investment
                                             trust, its sole member

                                             By: /s/ Saul A. Behar
                                                 -----------------------------
                                                 Saul A. Behar
                                                 Senior Vice President

                                   BLC HOLDINGS:
                                   ------------

                                   BROOKDALE PROVIDENT
                                     PROPERTIES, LLC,
                                   a Delaware limited liability company

                                   By: /s/ R. Stanley Young
                                       ----------------------------------
                                       Name:   R. Stanley Young
                                       Title:  Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

                                      50
<PAGE>

Brookdale Management joins into this Agreement Regarding Leases for the
purposes set forth in Paragraph 29 hereof:

BROOKDALE MANAGEMENT:
--------------------

BROOKDALE PROVIDENT MANAGEMENT, LLC,
a Delaware limited liability company

By: /s/ R. Stanley Young
   ---------------------------------
   Name:  R. Stanley Young
   Title:  Vice President

Each of the Brookdale Lessees joins into this Agreement Regarding Leases for
the purposes set forth in Paragraph 14 and Paragraph 30 hereof:

BROOKDALE LESSEES:
-----------------

BLC-SPRINGS AT EAST MESA, LLC,
a Delaware limited liability company

By: /s/ R. Stanley Young
    --------------------------------
    Name:  R. Stanley Young
    Title: Vice President

BLC-WOODSIDE TERRACE, L.P.,
a Delaware limited partnership

By:  BLC-Woodside Terrace, LLC,
     a Delaware limited liability company

     By:  /s/ R. Stanley Young
          -------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BLC-ATRIUM OF SAN JOSE, L.P.,
a Delaware limited partnership

By:  BLC-Atrium of San Jose, LLC,
     a Delaware limited liability company

     By:  /s/ R. Stanley Young
          -------------------------------
          Name:   R. Stanley Young
          Title:  Vice President

BLC-BROOKDALE PLACE OF SAN MARCOS, L.P.,
a Delaware limited partnership

By:  BLC-Brookdale Place of San Marcos, LLC,
     a Delaware limited liability company

     By:  /s/ R. Stanley Young
          -------------------------------
          Name:   R. Stanley Young
          Title:  Vice President

BLC-GABLES AT FARMINGTON, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-CHATFIELD, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF FLORIDA, INC.,
a Delaware corporation

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-THE HALLMARK, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-KENWOOD OF LAKE VIEW, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-THE HERITAGE OF DES PLAINES, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-DEVONSHIRE OF HOFFMAN ESTATES, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

         [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BLC-DEVONSHIRE OF LISLE, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-THE WILLOWS, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-HAWTHORNE LAKES, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-THE BERKSHIRE OF CASTLETON, L.P.,
a Delaware limited partnership

By:  BLC-The Berkshire of Castleton, LLC,
     a Delaware limited liability company, its general partner

     By:  /s/ R. Stanley Young
          -------------------------------
          Name:   R. Stanley Young
          Title:  Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BLC-RIVER BAY CLUB, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-EDINA PARK PLAZA, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-BRENDENWOOD, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-PONCE DE LEON, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BLC-THE GABLES AT BRIGHTON, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

BLC-PARK PLACE, LLC,
a Delaware limited liability company

By:  /s/ R. Stanley Young
     ------------------------------------
     Name:   R. Stanley Young
     Title:  Vice President

Each of the Provident Lessors joins into this Agreement Regarding Leases for
the purposes set forth in Paragraph 31 hereof:

PROVIDENT LESSORS:
-----------------

BROOKDALE LIVING COMMUNITIES OF ARIZONA-EM, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-RC, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF CALIFORNIA, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BLC OF CALIFORNIA-SAN MARCOS, L.P.,
a Delaware limited partnership

By:  Brookdale Living Communities of California-San Marcos, LLC,
     a Delaware limited liability company, its general partner

     By: PSLT-BLC Properties Holdings, LLC,
         a Delaware limited liability company, its sole member

         By:  PSLT OP, L.P.,
              a Delaware limited partnership, its sole member

              By: PSLT GP, LLC,
                  a Delaware limited liability company, its sole general partner

                  By:  Provident Senior Living Trust,
                       a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF CONNECTICUT, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF CONNECTICUT-WH, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF FLORIDA-CL, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-2960, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-HV, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

RIVER OAKS PARTNERS,
an Illinois general partnership

By:  Brookdale Holdings, LLC,
     a Delaware limited liability company, its general partner

     By: PSLT-BLC Properties Holdings, LLC,
         a Delaware limited liability company, its sole member

         By:  PSLT OP, L.P.,
              a Delaware limited partnership, its sole member

              By: PSLT GP, LLC,
                  a Delaware limited liability company, its sole general partner

                  By:  Provident Senior Living Trust,
                       a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-HOFFMAN ESTATES, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

THE PONDS OF PEMBROKE LIMITED PARTNERSHIP,
an Illinois limited partnership

By:  Brookdale Holdings, LLC,
     a Delaware limited liability company, its general partner

     By: PSLT-BLC Properties Holdings, LLC,
         a Delaware limited liability company, its sole member

         By:  PSLT OP, L.P.,
              a Delaware limited partnership, its sole member

              By: PSLT GP, LLC,
                  a Delaware limited liability company, its sole general partner

                  By:  Provident Senior Living Trust,
                       a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-HLAL, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF ILLINOIS-II, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BLC OF INDIANA-OL, L.P.,
a Delaware limited partnership

By:  Brookdale Living Communities of Indiana-OL, LLC,
     a Delaware limited liability company, its general partner

     By: PSLT-BLC Properties Holdings, LLC,
         a Delaware limited liability company, its sole member

         By:  PSLT OP, L.P.,
              a Delaware limited partnership, its sole member

              By: PSLT GP, LLC,
                  a Delaware limited liability company, its sole general partner

                  By:  Provident Senior Living Trust,
                       a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF MASSACHUSETTS-RB, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF MINNESOTA, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF NEW JERSEY, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF NEW MEXICO-SF, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

<PAGE>

BROOKDALE LIVING COMMUNITIES OF NEW YORK-GB, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

BROOKDALE LIVING COMMUNITIES OF WASHINGTON-PP, LLC,
a Delaware limited liability company

By:  PSLT-BLC Properties Holdings, LLC,
     a Delaware limited liability company, its sole member

     By: PSLT OP, L.P.,
         a Delaware limited partnership, its sole member

         By:  PSLT GP, LLC,
              a Delaware limited liability company, its sole general partner

              By:  Provident Senior Living Trust,
                   a Maryland real estate investment trust, its sole member

                   By:  /s/ Saul A. Behar
                      ------------------------------------------------------
                      Name:  Saul A. Behar
                      Title: Senior Vice President

                  [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

Provident joins into this Agreement Regarding Leases for the purposes set
forth in Paragraph 5 and Paragraph 35 hereof:

PROVIDENT:
---------

PROVIDENT SENIOR LIVING TRUST,
a Maryland real estate investment trust

By:  /s/ Saul A. Behar
   -------------------------------------
   Name:   Saul A. Behar,
   Title:  Senior Vice President

<PAGE>

                                   EXHIBIT A

                               Provident Lessors

Brookdale Living Communities of Arizona-EM, LLC
Brookdale Living Communities of California-RC, LLC
Brookdale Living Communities of California, LLC
BLC of California-San Marcos, L.P.
Brookdale Living Communities of Connecticut, LLC
Brookdale Living Communities of Connecticut-WH, LLC
Brookdale Living Communities of Florida, LLC
Brookdale Living Communities of Illinois-2960, LLC
Brookdale Living Communities of Illinois-HV, LLC
River Oaks Partners
Brookdale Living Communities of Illinois-Hoffman Estates, LLC
The Ponds of Pembroke Limited Partnership
Brookdale Living Communities of Illinois-HLAL, LLC
Brookdale Living Communities of Illinois-II, LLC
BLC of Indiana-OL, L.P.
Brookdale Living Communities of Massachusetts-RB, LLC
Brookdale Living Communities of Minnesota, LLC
Brookdale Living Communities of New Jersey, LLC
Brookdale Living Communities of New Mexico-SF, LLC
Brookdale Living Communities of New York-GB, LLC
Brookdale Living Communities of Washington-PP, LLC

<PAGE>

                                   EXHIBIT B

                               Brookdale Lessees

BLC-Springs at East Mesa, LLC
BLC-Woodside Terrace, L.P.
BLC-Atrium of San Jose, L.P.
BLC-Brookdale Place of San Marcos, L.P.
BLC-Gables at Farmington, LLC
BLC-Chatfield, LLC
Brookdale Living Communities of Florida, Inc.
BLC-The Hallmark, LLC
BLC-Kenwood of Lake View, LLC
BLC-The Heritage of Des Plaines, LLC
BLC-Devonshire of Hoffman Estates, LLC
BLC-Devonshire of Lisle, LLC
BLC-The Willows, LLC
BLC-Hawthorne Lakes, LLC
BLC-The Berkshire of Castleton, L.P.
BLC-River Bay Club, LLC
BLC-Edina Park Plaza, LLC
BLC-Brendenwood, LLC
BLC-Ponce de Leon, LLC
BLC-The Gables at Brighton, LLC
BLC-Park Place, LLC

<PAGE>

<TABLE>
<CAPTION>
                                          EXHIBIT C

                                         Facilities

-------------------------------------------------------------------------------------------
          Property Name                     State           City                County
-------------------------------------------------------------------------------------------
<S>  <C>                                  <C>             <C>                 <C>
1.   The Springs of East Mesa             Arizona         Mesa                Maricopa
-------------------------------------------------------------------------------------------
2.   Woodside Terrace                     California      Redwood City        San Mateo
-------------------------------------------------------------------------------------------
3.   The Atrium                           Calinfornia     San Jose            Santa Clara
-------------------------------------------------------------------------------------------
4.   Brookdale Place at San Marcos        Calinfornia     San Marcos          San Diego
-------------------------------------------------------------------------------------------
5.   The Gables at Farmington             Connecticut     Farmington          Hartford
-------------------------------------------------------------------------------------------
6.   Chatfield                            Connecticut     West Hartford       Hartford
-------------------------------------------------------------------------------------------
7.   The Classic at West Palm Beach       Florida         West Palm Beach     Palm Beach
--------------------------------------------------------------- ---------------------------
8.   The Hallmark                         Illinois        Chicago             Cook
-------------------------------------------------------------------------------------------
9.   The Kenwood of Lake View             Illinois        Chicago             Cook
-------------------------------------------------------------------------------------------
10.  The Heritage of Des Plaines          Illinois        Des Plaines         Cook
-------------------------------------------------------------------------------------------
11.  The Devonshire of Hoffman Estates    Illinois        Hoffman Estates     Cook
-------------------------------------------------------------------------------------------
12.  The Devonshire of Lisle              Illinois        Lisle               DuPage
-------------------------------------------------------------------------------------------
13.  The Willows                          Illinois        Vernon Hills        Lake
-------------------------------------------------------------------------------------------
14.  Hawthorn Lakes                       Illinois        Vernon Hills        Lake
-------------------------------------------------------------------------------------------
15.  The Berkshire of Castleton           Indiana         Indianapolis        Marion
--------------------------------------------------------------- ---------------------------
16.  River Bay Club                       Massachusetts   Quincy              Norfolk
--------------------------------------------------------------- ---------------------------
17.  Edina Park Plaza                     Minnesota       Edina               Hennepin
--------------------------------------------------------------- ---------------------------
18.  Brendenwood                          New Jersey      Voorhees            Camden
--------------------------------------------------------------- ---------------------------
19.  Ponce de Leon                        New Mexico      Santa Fe            Santa Fe
--------------------------------------------------------------- ---------------------------
20.  The Gables at Brighton               New York        Rochester           Monroe
--------------------------------------------------------------- ---------------------------
21.  Park Place                           Washington      Spokane             Spokane
--------------------------------------------------------------- ---------------------------
</TABLE>

<PAGE>

                                   EXHIBIT D

                                   Guaranty

<PAGE>

                                  SCHEDULE I

                         Existing Guaranty Facilities

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

    Existing Guaranty Facility     Existing Guaranty Facility Mortgagee
------------------------------------------------------------------------------

           Hallmark (IL)                       Freddie Mac
------------------------------------------------------------------------------

     Springs of East Mesa (AZ)                 Freddie Mac
------------------------------------------------------------------------------

          Park Place (WA)                      Freddie Mac
------------------------------------------------------------------------------

      Gables at Brighton (NY)                  Freddie Mac
------------------------------------------------------------------------------

     Devonshire of Lisle (IL)                Freddie Mac (1)
------------------------------------------------------------------------------

   Heritage of Des Plaines (IL)              Freddie Mac (1)
------------------------------------------------------------------------------

         The Willows (IL)                       Bank Leumi
------------------------------------------------------------------------------
(1)   The Existing Guaranty is a reimbursement agreement executed in connection
      with a tax-exempt bond financing.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]