Document:

EXHIBIT 10.14

                             MODIFICATION AGREEMENT
                             ------------ ---------

     This  MODIFICATION  AGREEMENT ("Agreement") is entered into effective as of
the  15th day of December, 2002, by and between SOUTHWEST BANK OF TEXAS, N.A., a
national  banking  association  ("Lender"),  and  GREATER HOUSTON GULF PARTNERS,
LTD.,  a  Texas  limited  partnership  ("Borrower").

                               W I T N E S S E T H
                               - - - - - - - - - -

     WHEREAS,  Lender made a loan (the "Loan") to Borrower on December 15, 1999,
in  the maximum principal amount of TWO MILLION NINE HUNDRED FIFTY-FIVE THOUSAND
AND  NO/100  DOLLARS  ($2,955,000.00);  and

     WHEREAS,  Lender  and  Borrower  executed  that  certain  Construction Loan
Agreement ("Loan Agreement") dated December 15, 999, pertaining to the Loan; and

     WHEREAS,  the  Borrower  executed  and  delivered  to  Lender  that certain
Promissory  Note  (as  same may have been heretofore amended, the "Note"), dated
December  15,  1999,  payable  to  the  order  of  Lender  in  the amount of and
evidencing  the  Loan;  and

     WHEREAS,  the  Borrower  executed  and delivered to Lender (i) that certain
Deed of Trust, Security Agreement and Assignment of Rents (as same may have been
heretofore  amended,  the  "Deed  of Trust") dated of even date with the Note to
George  M.  Marshall,  as  trustee  ("Trustee"),  for the benefit of the Lender,
recorded in the Official Public Records of Real Property of Harris County, Texas
under Clerk's File No. U168686, covering certain real property located in Harris
County,  Texas,  and  more particularly described in the Deed of Trust, together
with  all  improvements,  appurtenances,  other  properties  (whether  real  or
personal), rights and interests described in and encumbered by the Deed of Trust
(the  "Property"), to secure the payment of the Note and performance by Borrower
of  the  other  obligations  set  forth  in  the  Security  Documents (as herein
defined), and (ii) that certain Deed of Trust, Security Agreement and Assignment
of  Rents (as same may have been heretofore amended, the "Second Deed of Trust,"
and  together  with the Deed of Trust, sometimes referred to collectively herein
as  the  "Deed  of  Trust"),  dated  March  10,  2000, to George M. Marshall, as
trustee,  for  the  benefit  of  the  Lender,  recorded  in  the  Official
public  Records  of Real Property of Harris County, Texas under Clerk's File No.
U303929,  covering  certain  additional  real property located in Harris County,
Texas,  and  more  particularly  described in the Second Deed of Trust, together
with  all  improvements,  appurtenances,  other  properties  (whether  real  or
personal),  rights  and interests described in and encumbered by the Second Deed
of  Trust  (the "Additional Property," and together with the Property, sometimes
referred  to  herein  collectively  as  the  "Property"),  to further secure the
payment  of  the  Note  and performance by Borrower of the other obligations set
forth  in  the  Security  Documents  (as  herein  defined);  and

     WHEREAS,  the  Borrower  executed  and  delivered  to  Lender  that certain
Assignment  of  Rents  and Leases (as same may have been heretofore amended, the
"Assignment"), dated of even date with the Note, recorded in the Official Public
Records

<PAGE>
of  Real  Property  of  Harris  County,  Texas  under  Clerk's File No. U168687,
assigning  to  Lender  all  rents,  leases, income, revenues, issues and profits
which  may  arise from the operation or ownership of the Property, to secure the
payment  of  the  Note  and performance by Borrower of the other obligations set
forth  in  the  Security  Documents;  and

     WHEREAS, the Borrower caused to be issued by First American Title Insurance
Company  of  Texas  (the "Title Company") that certain Mortgagee Policy of Title
Insurance  (the  "Policy") No. M963099, dated January 10, 2000, in the amount of
the Note, insuring the dignity and priority of the lien created and evidenced by
the  Deed  of  Trust;  and

     WHEREAS,  the  Borrower  caused James Emerson and Schuyler Pulford (whether
one  or  more,  the  "Guarantor")  to execute and deliver to Lender that certain
Guaranty  Agreement  ("Guaranty")  dated of even date with the Note guaranteeing
payment  of  the  Note  and  all the other monetary obligations contained in the
Security  Documents  and performance by Borrower of the other obligations as set
forth  in  the  Security  Documents;  and

     WHEREAS, the Lender and Borrower now propose to modify certain of the terms
and  provisions  of  the  Loan  Agreement, the Assignment, the Note, the Deed of
Trust  and  the  other  related  documents executed by Borrower or third parties
pertaining  to,  evidencing  or  securing  the Loan (collectively, the "Security
Documents").

     NOW,  THEREFORE,  for  and  in consideration of the premises and the mutual
covenants  and  agreements  contained  herein,  and  for other good and valuable
consideration,  the  receipt  and  sufficiency of which are hereby acknowledged,
Lender  and  Borrower  hereby  agree  as  follows:

     1.  Extension  of  Maturity. The  maturity  date  of  the  Note  is  hereby
         -----------------------
extended  until  March  15, 2003, when the unpaid principal balance of the Note,
together with all accrued but unpaid interest thereon, shall be due and payable.
The  Borrower  hereby  renews,  but does not extinguish, the Note and the liens,
security  interests  and  assignments created and evidenced by the Deed of Trust
and  other  Security Documents, and in this regard all of the Security Documents
are  hereby  renewed  and modified by extending the maturity date thereof as set
forth  above. Borrower covenants to observe, comply with and perform each of the
terms  and  provisions  of  the  Security  Documents,  as  modified  hereby.

     2. Payment of Extension and Renewal Fee. In the event the Note has not been
        ------------------------------------
paid in full on or before February 15, 2002, Borrower shall remit to Lender cash
funds  in  the  amount  of  TWELVE  THOUSAND SIX HUNDRED NINETY-EIGHT AND NO/100
DOLLARS  ($12,698.00), which sum shall be in payment of an extension and renewal
fee  due to Lender as additional consideration for the extension of the maturity
date  of the Note as set forth herein. In the event such amount is not paid when
due, such failure shall constitute an Event of Default, and such amount shall be
added  to  the  outstanding  principal  balance  of  the  Note.

     3.  Modification  of  Terms of Payment of the Note. From and after the date
         ----------------------------------------------
hereof,  the  Note  shall  due  and  payable  as  follows:

<PAGE>
               Interest  shall  be  calculated  on  a  daily  basis and shall be
          payable monthly on each Interest Payment Date (as defined in the Note)
          until  and  including  January  15,  2003.  On  the Maturity Date, all
          accrued  and  unpaid  interest  hereon and the entire unpaid principal
          balance  hereof  shall  be  due  and  payable  in  full.

     4.  Acknowledgment  By  Borrower. Except as otherwise specified herein, the
         ----------------------------
terms  and  provisions  hereof  shall  in  no  manner impair, limit, restrict or
otherwise  affect  the  obligations of Borrower or any third party to Lender, as
evidenced  by  the  Security Documents. Borrower hereby acknowledges, agrees and
represents  that (i) Borrower is indebted to Lender pursuant to the terms of the
Note  as  modified  hereby;  (ii)  the liens, security interests and assignments
created  and  evidenced  by  the Security Documents are, respectively, valid and
subsisting  liens,  security interests and assignments of the respective dignity
and  priority  recited  in  the Security Documents; (iii) there are no claims or
offsets against, or defenses or counterclaims to, the terms or provisions of the
Security  Documents,  and  the  other  obligations  created  or evidenced by the
Security  Documents;  (iv)  Borrower  has  no  claims,  offsets,  defenses  or
counterclaims arising from any of Lender's acts or omissions with respect to the
Property,  the  Security  Documents  or  Lender's performance under the Security
Documents  or  with  respect  to  the  Property;  (v)  the  representations  and
warranties  contained  in  the  Security  Documents  are  true  and  correct
representations  and  warranties  of  Borrower and third parties, as of the date
hereof;  and (vi) Lender is not in default and no event has occurred which, with
the  passage  of  time, giving of notice, or both, would constitute a default by
Lender  of  Lender's  obligations under the terms and provisions of the Security
Documents.  To  the  extent  Borrower  now  has, or in the future possesses, any
claims,  offsets,  defenses  or counterclaims against Lender or the repayment of
all  or  a  portion  of the Loan, whether known or unknown, fixed or contingent,
relating  to  matters  occurring  prior  to the date hereof, the same are hereby
forever  irrevocably  waived  and  released  in  their  entirety.

     5.     Joinder of Guarantors. Each of the Guarantors joins in the execution
            ---------------------
hereof  for  the  purpose  of  (i) acknowledging and consenting to the terms and
provisions  hereof, (ii) ratifying, confirming and agreeing that the Guaranty is
and shall remain in full force and effect, (iii) acknowledging that there are no
claims  or  offsets  against,  or  defenses  or  counterclaims to, the terms and
provisions  of  and  the  obligations  created and evidenced by the Guaranty, as
amended,  and  (iv) certifying that the representations and warranties contained
in  the  Guaranty  remain  true  and  correct  representations and warranties of
Guarantor  as  of  the  date  hereof.

     6.     No  Waiver of Remedies. Except as may be expressly set forth herein,
            ----------------------
nothing  contained in this Agreement shall prejudice, act as, or be deemed to be
a  waiver of any right or remedy available to Lender by reason of the occurrence
or  existence  of  any  fact, circumstance or event constituting a default under
either  of  the  Note  or  any  of  the  other  Security  Documents.

     7.     Costs  and  Expenses.  Contemporaneously  with  the  execution  and
            --------------------
delivery  hereof,  Borrower shall pay, or cause to be paid, all reasonable costs
and  expenses  incident to the preparation, execution and recordation hereof and
the  consummation  of  the  transaction  contemplated hereby, including, but not
limited  to,  recording  fees, title insurance policy or endorsement premiums or
other  charges  of  the Title Company, and reasonable fees and expenses of legal
counsel  to  Lender.

     8.     Additional  Documentation. From time to time, Borrower shall execute
            -------------------------
or  procure  and  deliver  to  Lender  such  other  and  further  documents  and
instruments  evidencing,  securing  or

<PAGE>
pertaining  to  the  Loan  or  the  Security  Documents  as  shall be reasonably
requested by Lender so as to evidence or effect the terms and provisions hereof.

     9.     Effectiveness  of  the  Security  Documents.  Except  as  expressly
            -------------------------------------------
modified by the terms and provisions hereof, each of the terms and provisions of
the  Security  Documents  are hereby ratified and shall remain in full force and
effect;  provided,  however, that any reference in any of the Security Documents
to  the  Loan, the amount constituting the Loan, any defined terms, or to any of
the other Security Documents shall be deemed, from and after the date hereof, to
refer  to  the Loan, the amount constituting the Loan, defined terms and to such
other  Security  Documents,  as  modified  hereby.

     10.     GOVERNING LAW. THE TERMS AND PROVISIONS HEREOF SHALL BE GOVERNED BY
             -------------
AND  CONSTRUED  IN  ACCORDANCE  WITH  THE  LAWS OF THE STATE OF TEXAS, EXCEPT AS
OTHERWISE  EXPRESSLY  PROVIDED  HEREIN.

     11.     Time.  Time  is  of the essence in the performance of the covenants
             ----
contained  herein  and  in  the  Security  Documents.

     12.     Binding  Agreement.  This  Agreement  shall  be  binding  upon  the
             ------------------
successors  and  assigns of the parties hereto; provided, however, the foregoing
shall  not  be  deemed  or  construed
to  (i) permit, sanction, authorize or condone the assignment of all or any part
of  the  Property or any of Borrower's rights, titles or interests in and to the
Property,  except  as  expressly  authorized  in the Security Documents, or (ii)
confer  any  right, title, benefit, cause of action or remedy upon any person or
entity  not  a  party  hereto,  which  such party would not or did not otherwise
possess.

     13.     Headings.  The section headings hereof are inserted for convenience
             --------
of  reference  only  and  shall in no way alter, amend, define or be used in the
construction  or  interpretation  of  the  text  of  such  section.

     14.     Construction. Whenever the context hereof so requires, reference to
             ------------
the singular shall include the plural and likewise, the plural shall include the
singular:  words  denoting  gender  shall  be  construed  to mean the masculine,
feminine  or  neuter, as appropriate; and specific enumeration shall not exclude
the  general,  but  shall  be construed as cumulative of the general recitation.

     15.     Severability.  If any clause or provision of this Agreement is or
             ------------
should ever be held to be illegal, invalid or unenforceable under any present or
future  law  applicable  to  the terms hereof, then and in that event, it is the
intention  of  the parties hereto that the remainder of this Agreement shall not
be  affected  thereby, and that in lieu of each such clause or provision of this
Agreement  that  is  illegal, invalid or unenforceable, such clause or provision
shall  be judicially construed and interpreted to be as similar in substance and
content  to  such  illegal, invalid or unenforceable clause or provision, as the
context  thereof  would  reasonably suggest, so as to thereafter be legal, valid
and  enforceable.

     16.     Counterparts. To facilitate execution, this Agreement may be
             ------------
executed  in as many counterparts as may be convenient or required. It shall not
be  necessary  that  the  signature and acknowledgment of, or on behalf of, each
party,  or that the signature and acknowledgment of all persons required to bind
any  party,  appear  on  each  counterpart.  All counterparts shall collectively
constitute  a  single  instrument.  It shall not be necessary in making proof of
this

<PAGE>
Agreement  to  produce  or account for more than a single counterpart containing
the  respective  signatures  and acknowledgment of, or on behalf of, each of the
parties  hereto. Any signature and acknowledgment page to any counterpart may be
detached  from  such  counterpart  without  impairing  the  legal  effect of the
signatures  and  acknowledgments  thereon  and  thereafter  attached  to another
counterpart  identical thereto except having attached to it additional signature
and  acknowledgment  pages.

                  (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
                         [SIGNATURES ON FOLLOWING PAGES)

<PAGE>
EXECUTED effective as of the date first above written.

                              LENDER:
                              ------

                              SOUTHWEST  BANK  OF  TEXAS,  N.A.,  a
                              national  banking  association

                              By:     /s/ Noel  M.  Byrne
                                      ----------------------------------
                                      Noel  M.  Byrne
                                      Senior  Vice  President

                              BORROWER:
                              --------

                              GREATER  HOUSTON  GULF  PARTNERS,
                              LTD.,  a  Texas  limited  partnership

                              By:     Greater Houston Gulf Partners, G.P., Inc.,
                                      a Texas  corporation

                                      By:   /s/ J. H. Carpenter
                                            ------------------------------
                                            J. H. Carpenter, President

                              GUARANTORS:
                              ----------

                              /s/  JAMES  EMERSON
                              ----------------------------------------
                              JAMES  EMERSON

                              /s/  SCHUYLER  PULFORD
                              ----------------------------------------
                              SCHUYLER  PULFORD

<PAGE>
THE  STATE  OF  TEXAS            Sec.
                                 Sec.
COUNTY  OF  HARRIS               Sec.

     This  instrument was acknowledged before me on this the ___ day of January,
2003,  by Noel M. Byrne, Senior Vice President of SOUTHWEST BANK OF TEXAS, N.A.,
a  national  banking  association,  on  its  behalf.

                                 __________________________________________
                                 Notary  Public  in  and  for
                                 The  State  of  T  E  X  A  S

THE  STATE  OF  TEXAS            Sec.
                                 Sec.
COUNTY  OF  HARRIS               Sec.

     This  instrument was acknowledged before me on this the ___ day of January,
2003,  by  J.  H.  Carpenter,  President of Greater Houston Gulf Partners, G.P.,
Inc.,  a  Texas  corporation,  general partner of GREATER HOUSTON GULF PARTNERS,
LTD.,  a  Texas  limited  partnership, on behalf of said corporation, as general
partner  of  said  limited  partnership.

                                 __________________________________________
                                 Notary  Public  in  and  for
                                 The  State  of  T  E  X  A  S

THE  STATE  OF  TEXAS            Sec.
                                 Sec.
COUNTY  OF  HARRIS               Sec.

     This  instrument was acknowledged before me on this the ___ day of January,
2003,  by  JAMES  EMERSON.

                                 __________________________________________
                                 Notary  Public  in  and  for
                                 The  State  of  T  E  X  A  S

THE  STATE  OF  TEXAS            Sec.
                                 Sec.
COUNTY  OF  HARRIS               Sec.

     This  instrument was acknowledged before me on this the ___ day of January,
2003,  by
SCHUYLER  PULFORD.

                                 __________________________________________
                                 Notary  Public  in  and  for
                                 The  State  of  T  E  X  A  S

<PAGE>Third Amendment to Rights Agreement

  EXHIBIT 4.4
  THIRD AMENDMENT TO RIGHTS AGREEMENT
            THIS THIRD AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”), dated as of October 1, 2002, is made by and between ARV ASSISTED LIVING, INC., a Delaware
corporation (the “Company”), and CONTINENTAL STOCK TRANSFER & TRUST COMPANY (the “Rights Agent”).
  RECITALS
            A.          WHEREAS, the Company and the Chasemellon Shareholders Services, L.L.C.  (“Chasemellon”)
entered into that certain Rights Agreement dated as of May 14, 1998, as amended as of October 21, 1998 and April 24, 2000 (the “Rights Agreement”); 
            B.          WHEREAS, Chasemellon, as assignor, and Rights Agent, as assignee, entered into that 
 Certain
Assignment and Assumption of Rights Agreement dated September 25, 2002 pursuant to which Chasemellon assigned and transferred all of its right, title and interest under the Rights Agreement to Rights Agent, and Rights Agent assumed and agreed to
perform and to be bound by all of the terms and conditions imposed upon Chasemellon under the Rights Agreement
            C.          WHEREAS, pursuant to Section 26 of the Rights Agreement, the Company and the Rights Agent desire to
amend the Rights Agreement as set forth below;
            NOW, THEREFORE, the Rights Agreement is hereby amended as follows:
            1.          Amendment of Section 9.  The following paragraph shall be added to Section 9 beneath the
last sentence of the first paragraph of Section 9. 
           “The Company agrees to take all such action, from and after the Distribution
Date, as may be necessary or appropriate to permit the issuance of shares in connection with the exercise of the Rights, including any required registration under (i) the Securities Act of 1933, as amended from time to time (the “Securities
Act”), and (ii) the securities or “blue sky” laws of the various states, in connection with the exercisability of the Rights.  The Company may temporarily suspend, for a period of time not to exceed 90 days, the exercisability of
the Rights in order to prepare and file a registration statement or statements for the purpose of effecting any such registration and permit such statement(s) to become effective.  At the commencement and termination of any such suspension, the
Company shall issue a public announcement and shall provide written notice to the Rights Agent, stating that the exercisability of the Rights has been temporarily suspended, or that such suspension has terminated, as the case may be. 
Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be 

   exercisable in any jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained and until a registration statement has been declared
effective.”
            2.          Amendment of Section 23.1.  The first sentence of
Section 23.1 of the Rights Agreement is hereby amended and restated to read in its entirety as follows:
                                “23.1 Right to Redeem. The Board of
Directors of the Company may, at its option, at any time prior to the Distribution Date, redeem all but not less than all of the then outstanding Rights at a redemption price of $.01 per Right, appropriately adjusted to reflect any stock split,
stock dividend, recapitalization or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”), and the Company may, at its option, pay the Redemption Price in Common
Shares (based on the “current per share market price,” determined pursuant to Section 11.4, of the Common Shares at the time of redemption), cash or any other form of consideration deemed appropriate by the Board of
Directors.”
           3.          Amendment of Section 27.1.  Section 27.1 of the
Rights Agreement is hereby amended and restated to read in its entirety as follows:
                                “27.1  Exchange of Common Shares for
Rights. The Board of Directors of the Company may, at its option, at any time after the occurrence of a Trigger Event, exchange Common Shares for all or part of the then outstanding and exercisable Rights (which shall not include Rights that have
become void pursuant to the provisions of Section 11.1.2) by exchanging that number of Common Shares having an aggregate value equal to the Spread (with such value being based on the current per share market price (as determined pursuant to Section
11.4) on the date of the occurrence of a Trigger Event) per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such amount per Right being hereinafter referred to as the
“Exchange Consideration”). Notwithstanding the foregoing, the Board shall not be empowered to effect an exchange for more than that number of Rights for which there are sufficient Common Shares authorized but unissued, or held by the
Company as treasury shares, to permit the exchange for Rights. From and after the occurrence of an event specified in Section 13.1, any Rights that theretofore have not been exchanged pursuant to this Section 27.1 shall thereafter be exercisable
only in accordance with Section 13 and may not be exchanged pursuant to this Section 27.1. The exchange of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of Directors in
its sole discretion may establish.”
            4.          Effectiveness. This
Amendment shall be deemed effective as of August 20, 2002 as if executed by both parties on such date. Except as amended hereby, the Rights Agreement shall remain in full force and effect and shall be otherwise unaffected hereby.
           5.          Miscellaneous. This Amendment shall be deemed to be a contract made under the laws of
the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state, without giving effect to the choice of law
provisions thereof. This Amendment may be executed in any number of counterparts, each of such counterparts shall for all purposes
  2

   be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. If any term, provision, covenant or restriction of this
Amendment is held by a court of competent jurisdiction or other authority to be invalid, illegal, or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.
  3

             IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Rights Agreement to be duly executed as
of the date first above written.

	  ARV ASSISTED LIVING, INC.
 	  
 
	  
 	  
 
	  
 	  By:
 	  /s/ DOUGLAS M. PASQUALE
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	  Douglas M. Pasquale
 	  
 
	  
 	  Its:
 	  Chairman, Chief Executive Officer
 	  
 
	  
 	   
 	  
 
	  CONTINENTAL STOCK TRANSFER & TRUST COMPANY
 	  
 
	  
 	  
 
	  
 	  By:  
 	  /s/ ROGER BERHAMMER
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	  Roger Berhammer
 	  
 
	  
 	  Its:
 	  Vice President
 	  
 

  4

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