Sterling House Corp Watch

from 10-Q 1 page May 14, 1997 Mr. Steven Vick, President Sterling House Corporation 453 S. Webb Road, Suite 500 Wichita, Ks 67207 Dear Steven: This Letter Will Serve as an Amendment to the Commitment Letter Dated April 3, 1996 for Phases IV and V of the Line of Credit. 1. Effective Date. These Amendments Will Be Effective for All Phase IV and Phase V Financings Except for the First Two Phase IV Financings,including Troy, Ohio. 2. Permanent Financings. (A) Permanent Rate Spread. the Permanent Rates Spread Will Be 345 Bps. (B) Commitment Fee. the Commitment Fee for the Permanent Financings Will Be Waived. (C) Legal Fees of Health Care REIT, Inc. the Legal Fees of Health Care REIT, Inc. Will Be Capped at $10,000 Per Financing. 3. Construction Financings. (A) Construction Commitment Fee. the Construction Commitment Fee Will Be .50%. (B) Construction Rate Spread. the Construction Rate Spread Will Be 200 Bps Over the Prime Rate as Reported in the Wall Street Journal. Except as Modified Above, All Other Terms and Conditions of the Commitment Letter Will Remain in Effect. Please Acknowledge Your Acceptance of the Foregoing Terms by Signing a Copy of This Letter and Sending It to Me by 5:00 Eastern Time on May 31, 1997. Sincerely, Sterling House Corporation Health Care REIT, Inc. /S/ Steven Vick Steven Vick, President /S/ Raymond W. Braun Raymond W. Braun Chief Operating Officer