Highland Farms, Inc. and Subsidiary - Page 11

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               The rental contract did not specify the length of the                  
          agreement.  Residents intending to terminate occupancy were                 
          required to give 120 days' notice and were obligated to pay the             
          rent for that period even if they vacated the premises prior to             
          the end of the 120-day period, unless a new tenant rented the               
          unit within that time.  Residents transferring to the health-care           
          center were required to give only 60 days' notice.  Petitioner              
          had the right to evict an apartment resident on demand for                  
          failure to keep financial accounts current.  If a resident was              
          disruptive, created an undue hazard to himself or others, or                
          failed to abide by the rules and regulations of Highland Farms,             
          petitioner had the right to terminate the rental agreement.                 
          Should the resident's physical or mental condition become such              
          that continued occupancy of the apartment would pose a hazard to            
          the resident or others, petitioner, in consultation with its                
          medical staff and the resident's family, would attempt to find              
          suitable accommodation in the lodge, health-care center, or                 
          elsewhere.  The agreement would terminate in the event of                   
          destruction of the building rendering the apartment                         
          uninhabitable, except the agreement would not terminate if                  
          petitioner opted to repair the building and provided the resident           
          with accommodations during the repair period.                               
               According to the rental contract, the entry fee was deemed             
          to have been earned by petitioner:                                          
               Ten (10%) percent at the time the Tenant takes                         
               occupancy of the Unit.                                                 
               Ten (10%) percent during the first year of occupancy,                  




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Last modified: May 25, 2011