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Exhibit 4.1  

OMEGA HEALTHCARE INVESTORS, INC.  

 
  ARTICLES SUPPLEMENTARY    
    

        Omega Healthcare Investors, Inc., a Maryland corporation ("Company"), hereby certifies to the State Department of Assessments and Taxation of Maryland
that: 

        FIRST:    Pursuant to authority contained in the Charter, One Million Thirty-Nine Thousand Five Hundred (1,039,500)
shares of authorized but unissued shares of the Company's Series C Convertible Preferred Stock have been duly reclassified by the Board of Directors of the Company as authorized but unissued
shares of the Company's Preferred Stock, par value $1.00 per share as described in Article IV, Section 2 of the Articles of Incorporation of the Company, without designation as to
series. 

        SECOND:    Pursuant to authority contained in the Charter, Four Million Seven Hundred Thirty-Nine Thousand Five
Hundred (4,739,500) shares of authorized but unissued shares of the Company's Preferred Stock (after giving effect to the reclassification pursuant to Article FIRST above of the Company's previously
authorized Series C Convertible Preferred Stock) have been duly classified by the Board of Directors of the Company as authorized but unissued shares of the Company's 8.375% Series D
Cumulative Redeemable Preferred Stock. 

        THIRD:    A description of the 8.375% Series D Cumulative Redeemable Preferred Stock is as follows: 

        1.    Designation and Number.    A series of Preferred Stock, designated the "8.375% Series D Cumulative
Redeemable Preferred Stock" (the "Series D Preferred Stock"), is hereby established. The number of
shares of the Series D Preferred Stock shall be Four Million Seven Hundred Thirty-Nine Thousand Five Hundred (4,739,500). 

        2.    Maturity.    The Series D Preferred Stock has no stated maturity and will not be subject to any sinking
fund or mandatory redemption. 

        3.    Rank.    The Series D Preferred Stock will, with respect to dividend rights and rights upon liquidation,
dissolution or winding up of the Company, rank (i) senior to all classes or series of Common Stock of the Company, and to all equity securities ranking junior to the Series D Preferred
Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up of the Company; (ii) on a parity with the Series A and Series B Preferred Stock and all
other equity securities issued by the Company the terms of which specifically provide that such equity securities rank on a parity with the Series D Preferred Stock with respect to dividend
rights or rights upon liquidation, dissolution or winding up of the Company; and (iii) junior to all existing and future indebtedness of the Company. The term "equity securities" does not
include convertible debt securities, which will rank senior to the Series D Preferred Stock prior to conversion. 

        4.    Dividends.    

        (a)   Holders
of shares of the Series D Preferred Stock are entitled to receive, when and as declared by the Board of Directors (or a duly authorized committee
thereof), out of funds legally available for the payment of dividends, preferential cumulative cash dividends at the rate of 8.375% per annum of the Liquidation Preference (as defined below) per share
(equivalent to a fixed annual amount of $2.09375 per share). Dividends on the Series D Preferred Stock shall be cumulative from the date of original issue and shall be payable in arrears for
each period ended April 30, July 31, October 31, and January 31, on or before the 15th day of May, August, November, February, of each year, or, if not a business day, the
next succeeding business day (each, a "Dividend Payment Date"). The first dividend will be paid on May 17, 2004, with respect to the period commencing on the date of issue and ending on
April 30, 2004. Any dividend payable on the Series D Preferred Stock for any partial period will be computed on the basis of a 360-day year consisting of twelve
30-day months. Dividends will be payable to holders of record as 

 

they
appear in the stock records of the Company at the close of business on the applicable record date, which shall be the last day of the preceding calendar month prior to the applicable Dividend
Payment Date or on such other date designated by the Board of Directors of the Company that is not more than 30 nor less than 10 days prior to such Dividend Payment Date (each, a "Dividend
Record Date"). 

        (b)   No
dividends on shares of Series D Preferred Stock shall be declared by the Board of Directors or paid or set apart for payment by the Company at such time as the
terms and provisions of any agreement of the Company, including any agreement relating to its indebtedness, prohibits such declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such declaration or payment shall be restricted or prohibited by law. 

        (c)   Notwithstanding
the foregoing, dividends on the Series D Preferred Stock will accrue whether or not the Company has earnings, whether or not there are funds
legally available for the payment of such dividends and whether or not such dividends are declared and whether or not such is prohibited by agreement. Accrued but unpaid dividends on the
Series D Preferred Stock will not bear interest and holders of the Series D Preferred Stock will not be entitled to any distributions in excess of full cumulative distributions described
above. Except as set forth in the next sentence, no dividends will be declared or paid or set apart for payment on any capital stock of the Company or any other series of Preferred Stock ranking, as
to dividends, on a parity with or junior to the Series D Preferred Stock (other than a dividend in shares of the Company's Common Stock or in shares of any other class of stock ranking junior
to the Series D Preferred Stock as to dividends and upon liquidation) for any period unless full cumulative dividends have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for such payment on the Series D Preferred Stock for all past dividend periods and the then current dividend period. When dividends are not paid
in full (or a sum sufficient for such full payment is not so set apart) upon the Series D Preferred Stock and the shares of any other series of Preferred Stock ranking on a parity as to
dividends with the Series D Preferred Stock, all dividends declared upon the Series D Preferred Stock and any other series of Preferred Stock ranking on a parity as to dividends with the
Series D Preferred Stock shall be declared pro rata so that the amount of dividends declared per share of Series D Preferred Stock and such other series of Preferred Stock shall in all
cases bear to each other the same ratio that accrued dividends per share on the Series D Preferred Stock and such other series of Preferred Stock (which shall not include any accrual in respect
of unpaid dividends for prior dividend periods if such Preferred Stock does not have a cumulative dividend) bear to each other. 

        (d)   Except
as provided in the immediately preceding paragraph, unless full cumulative dividends on the Series D Preferred Stock have been or contemporaneously are
declared and paid or declared and a sum sufficient for the payment thereof is set apart for payment for all past dividend periods and the then current dividend period, no dividends (other than in
shares of Common Stock or other shares of capital stock ranking junior to the Series D Preferred Stock as to dividends and upon liquidation) shall be declared or paid or set aside for payment
nor shall any other distribution be declared or made upon the Common Stock, or any other capital stock of the Company ranking junior to or on a parity with the Series D Preferred Stock as to
dividends or upon liquidation, nor shall any shares of Common Stock, or any other shares of capital stock of the Company ranking junior to or on a parity with the Series D Preferred Stock as to
dividends or upon liquidation be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such shares)
by the Company (except by conversion into or exchange for other capital stock of the Company ranking junior to the Series D Preferred Stock as to dividends and upon liquidation or redemptions
for the purpose of preserving the Company's qualification as a real estate investment 

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trust
under the Internal Revenue Code of 1986, as amended). Holders of shares of the Series D Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or stock,
in excess of full cumulative dividends on the Series D Preferred Stock as provided above. Any dividend payment made on shares of the Series D Preferred Stock shall first be credited
against the earliest accrued but unpaid dividend due with respect to such shares which remains payable. 

        5.    Liquidation Preference.    Upon any voluntary or involuntary liquidation, dissolution or winding up of the
affairs of the Company, the holders of shares of Series D Preferred Stock are entitled to be paid out of the assets of the Company legally available for distribution to its shareholders a
liquidation preference of $25 per share in cash or property at its fair market value as determined by the board of directors (the "Liquidation Preference"), plus an amount equal to any accrued and
unpaid dividends to the date of payment, but without interest, before any distribution of assets is made to holders of Common Stock or any other class or series of capital stock of the Company that
ranks junior to the Series D Preferred Stock as to liquidation rights. The Company will promptly provide to the holders of Series D Preferred Stock written notice of any event triggering
the right to receive such Liquidation Preference. After payment of the full amount of the Liquidation Preference, plus any accrued and unpaid dividends to which they are entitled, the holders of
Series D Preferred Stock will have no right or claim to any of the remaining assets of the Company. The consolidation or merger of the Company with or into any other corporation, trust or
entity or of any other corporation with or into the Company, or the sale, lease or conveyance of all or substantially all of the property or business of the Company, shall not be deemed to constitute
a liquidation, dissolution or winding up of the Company; provided that, in each case, effective provision is made in the organizational documents of the resulting or surviving entity or otherwise for
the rights of the holders of the Series D Preferred Stock to receive dividends and participate in any distribution upon liquidation, dissolution or winding up of the affairs of such resulting
or surviving entity in a manner consistent with the provisions of this Article Third. 

        In
determining whether a distribution (other than upon voluntary or involuntary liquidation) by dividend, redemption or other acquisition of shares of stock of the Company or otherwise
is permitted under the Maryland General Corporation Law (the "MGCL"), no effect shall be given to amounts that would be needed if the Company would be dissolved at the time of the
distribution, to satisfy the
preferential rights upon distribution of holders of shares of stock of the Company whose preferential rights upon distribution are superior to those receiving the distribution. 

        6.    Redemption.    

        (a)   The
Series D Preferred Stock is not redeemable prior to February 10, 2009 subject, however, to the provisions in paragraph (9) of this Article
Third. On and after February 10, 2009, the Company, at its option, upon not less than 30 nor more than 60 days' written notice, may redeem shares of the Series D Preferred Stock,
in whole or in part, at any time or from time to time, for cash at a redemption price of $25 per share, plus all accrued and unpaid dividends thereon to the date fixed for redemption (except with
respect to any shares of Series D Preferred Stock that constitute Excess Shares (as defined in paragraph 9 of this Article Third)) without interest. No shares of Series D
Preferred Stock may be redeemed except with assets legally available for the payment of the redemption price. 

        Holders
of Series D Preferred Stock to be redeemed shall surrender such Series D Preferred Stock at the place designated in such notice and shall be entitled to the
redemption price and any accrued and unpaid dividends payable upon such redemption following such surrender. If notice of redemption of any shares of Series D Preferred Stock has been given and
if the funds necessary for such redemption have been set aside, separate and apart from other funds, by the Company in trust for the benefit of the holders of any shares of Series D Preferred
Stock so called for redemption, then from and after the redemption date dividends will cease to accrue on such shares of Series D Preferred Stock, such shares of Series D Preferred Stock
shall no longer be deemed 

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outstanding
and all rights of the holders of such shares will terminate, except the right to receive the redemption price. If less than all of the outstanding Series D Preferred Stock is to be
redeemed, the Series D Preferred Stock to be redeemed shall be selected pro rata (as nearly as may be practicable without creating fractional shares) or by any other equitable method determined
by the Company. 

        (b)   Unless
full cumulative dividends on all shares of Series D Preferred Stock shall have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all past dividend periods and the then current dividend period, no shares of Series D Preferred Stock shall be redeemed unless all
outstanding shares of Series D Preferred Stock are simultaneously redeemed and the Company shall not purchase or otherwise acquire directly or indirectly any shares of Series D Preferred
Stock (except by exchange for capital stock of the Company ranking junior to the Series D Preferred Stock as to dividends and upon liquidation); provided, however, that the foregoing shall not
prevent the purchase by the Company of any shares of Series D Preferred Stock that constitute Excess Shares in order to ensure that the Company continues to meet the requirements for
qualification as a real estate investment trust under the Internal Revenue Code, or the purchase or acquisition of shares of Series D Preferred Stock pursuant to a purchase or exchange offer
made on the same terms to holders of all outstanding shares of Series D Preferred Stock. So long as no dividends are in arrears, the Company shall be entitled at any time and from time to time
to repurchase shares of Series D Preferred Stock in open-market transactions duly authorized by the Board of Directors and effected in compliance with applicable laws. 

        (c)   Notice
of redemption will be given by publication in a newspaper of general circulation in the City of New York, such publication to be made once a week for two
successive weeks commencing not less than 30 nor more than 60 days prior to the redemption date. A similar notice will be mailed by the Company, postage prepaid, not less than 30 nor more than
60 days prior to the redemption date, addressed to the respective holders of record of the Series D Preferred Stock to be redeemed at their respective addresses as they appear on the
stock transfer records of the Company. No failure to give such notice or any defect therein or in the mailing thereof shall affect the validity of the proceedings for the redemption of any shares of
Series D Preferred Stock except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the redemption date; (ii) the redemption price;
(iii) the number of shares of Series D Preferred Stock to be redeemed; (iv) the place or places where the Series D Preferred Stock is to be surrendered for payment of the
redemption price; and (v) that dividends on the shares to be redeemed will cease to accrue on such redemption date. If less than all of the Series D Preferred Stock held by any holder is
to be redeemed, the notice mailed to such holder shall also specify the number of shares of Series D Preferred Stock held by such holder to be redeemed. 

        (d)   Immediately
prior to any redemption of Series D Preferred Stock, the Company shall pay, in cash, any accumulated and unpaid dividends through the redemption date,
unless a redemption date falls after a Dividend Record Date and prior to the corresponding Dividend Payment Date, in which case each holder of Series D Preferred Stock at the close of business
on such Dividend Record Date shall be entitled to the dividend payable on such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such shares before such Dividend
Payment Date. 

        (e)   Excess
Shares may be redeemed, in whole or in part, at any time when outstanding shares of Series D Preferred Stock are being redeemed, for cash at a redemption
price of $25 per share, but excluding accrued and unpaid dividends on such Excess Shares, without interest. Such Excess Shares shall be redeemed in such proportion and in accordance with such
procedures as shares of Series D Preferred Stock are being redeemed. 

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        (f)    All
Series D Preferred Shares redeemed pursuant to this Section 6 shall be retired and shall be reclassified as authorized and unissued preferred shares,
without designation as to class or series, and may thereafter be reissued as any class or series of preferred shares. 

        7.    Voting Rights.    

        (a)   Holders
of the Series D Preferred Stock will not have any voting rights, except as set forth below. 

        (b)   Whenever
dividends on any shares of Series D Preferred Stock shall be in arrears for any six or more quarterly dividend periods, regardless of whether such
quarterly periods are consecutive (a "Preferred Dividend Default"), the number of directors then constituting the Board of Directors shall be increased by two (if not already increased by reason of a
similar arrearage respect to any Parity Preferred (as hereinafter defined). The holders of such shares of Series D Preferred Stock (voting separately as a class with all other series of
Preferred Stock ranking on a parity with the Series D Preferred Stock as to dividends or upon liquidation ("Parity Preferred") upon which like voting rights have been conferred and are
exercisable) will be entitled to vote separately as a class, in order to fill the vacancies thereby created, for the election of a total of two additional directors of the Company (the "Preferred
Stock Directors") at a special meeting called by the holders of record of at least 20% of the Series D Preferred Stock or the holders of record of at least 20% of any series of Parity Preferred
so in arrears (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of the shareholders) or at the next annual meeting of shareholders,
and at each subsequent annual meeting until all dividends accumulated on such shares of Series D Preferred Stock and Parity Preferred for the past dividend periods and the dividend for the then
current dividend period shall have been fully paid or declared and a sum sufficient for the payment thereof set aside for payment. In the event the directors of the Company are divided into classes,
each such vacancy shall be apportioned among the classes of directors to prevent stacking in any one class and to insure that the number of directors in each of the classes of directors are as equal
as possible. Each Preferred Stock Director, as a qualification for election as such (and regardless of how elected) shall submit to the Board of Directors of the Company a duly executed, valid,
binding and enforceable letter of resignation from the Board of Directors, to be effective upon the date upon which all dividends accumulated on such shares of Series D Preferred Stock and
Parity Preferred for the past dividend periods and the dividend for the then current dividend period shall have been fully paid or declared and a sum sufficient for the payment thereof set aside for
payment, whereupon the terms of office of all persons elected as Preferred Stock Directors by the holders of the Series D Preferred Stock and any Parity Preferred shall, upon the effectiveness
of their respective letters of resignation, forthwith terminate, and the number of directors then constituting the Board of Directors shall be reduced accordingly. A quorum for any such meeting shall
exist if at least a majority of the outstanding shares of Series D Preferred Stock and shares of Parity Preferred upon which like voting rights have been conferred and are exercisable are
represented in person or by proxy at such meeting. Such Preferred Stock Directors shall be elected upon the affirmative vote of a plurality of the shares of Series D Preferred Stock and such
Parity Preferred present and voting in person or by proxy at a duly called and held meeting at which a quorum is present. If and when all accumulated dividends and the dividend for the then current
dividend period on the Series D Preferred Stock shall have been paid in full or declared and set aside for payment in full, the holders thereof shall be divested of the foregoing voting rights
(subject to revesting in the event of each and every Preferred Dividend Default) and, if all accumulated dividends and the dividend for the then current dividend period have been paid in full or set
aside for payment in full on all series of Parity Preferred upon which like voting rights have been conferred and are exercisable, the term of office of each Preferred Stock Director so elected shall
terminate. Any Preferred Stock Director may be removed at any time with or without cause by, and shall not be removed 

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otherwise
than by the vote of, the holders of record of a majority of the outstanding shares of the Series D Preferred Stock when they have the voting rights described above (voting separately
as a class with all series of Parity Preferred upon which like voting rights have been conferred and are exercisable). So long as a Preferred Dividend Default shall continue, any vacancy in the office
of a Preferred Stock Director may be filled by written consent of the Preferred Stock Director remaining in office, or if none remains in office, by a vote of the holders of record of a majority of
the outstanding shares of Series D Preferred Stock when they have the voting rights described above (voting separately as a class with all series of Parity Preferred upon which like voting
rights have been conferred and are
exercisable). The Preferred Stock Directors shall each be entitled to one vote per director on any matter. 

        (c)   So
long as any shares of Series D Preferred Stock remain outstanding, the Company will not, without the affirmative vote or consent of the holders of at least
two-thirds of the shares of the Series D Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class): 

          (i)  amend,
alter or repeal the provisions of the Charter or the Articles Supplementary, whether by merger, consolidation or otherwise (an "Event"), so as to materially and
adversely affect any right, preference, privilege or voting power of the Series D Preferred Stock or the holders thereof; 

         (ii)  authorize,
create or issue, or increase the authorized or issued amount of, any class or series of shares of Preferred Stock or rights to subscribe to or acquire any
class or series of shares of Preferred Stock or any security convertible into any class or series of shares of Preferred Stock, in each case ranking senior to the Series D Preferred Stock with
respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, or reclassify any shares of Preferred Stock into any such shares; 

provided, however, that with respect to the occurrence of any Event set forth above, so long as the Series D Preferred Stock (or any equivalent
class or series of stock issued by the surviving corporation in any merger or consolidation to which the Company became a party) remains outstanding with the terms thereof materially unchanged, the
occurrence of any such Event shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting power of holders of the Series D Preferred Stock; and  provided, further, that (i) any increase in the amount of the authorized Preferred Stock or the creation or issuance of any other series of
Preferred Stock, or (ii) any increase in the amount of authorized shares of such series, in each case ranking on a parity with or junior to the Series D Preferred Stock with respect to
payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting
powers. 

        (d)   The
foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected,
all outstanding shares of Series D Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds shall have been deposited in trust to effect such
redemption. 

        (e)   Except
as expressly stated in these Articles Supplementary, the Series D Preferred Stock shall not have any relative, participating, optional or other special
voting rights and powers and the consent of the holders thereof shall not be required for the taking of any corporate action, including but not limited to, any merger or consolidation involving the
Corporation or a sale of all or substantially all of the assets of the Corporation, irrespective of the effect that such merger, consolidation or sale may have upon the rights, preferences or voting
power of the holders of the Series D Preferred Stock. 

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        8.    Conversion.    The Series D Preferred Stock is not convertible into or exchangeable for any other
property or securities of the Company. 

        9.    Restrictions on Ownership and Transfer.    

        Once
there is a completed public offering of the Series D Preferred Stock, if the Board of Directors shall, at any time and in good faith, be of the opinion that actual or
constructive ownership of at least 9.9% or more of the value of the outstanding capital stock of the Company ("Excess Shares") has or may become concentrated in the hands of one owner, the Board of
Directors shall have the power (i) by means deemed equitable by the Board of Directors, and pursuant to written notice, to call for the purchase from any shareholder of the corporation a number
of shares of Series D Preferred Stock sufficient, in the opinion of the Board of Directors, to maintain or bring the direct or indirect ownership of such beneficial owner to no more than 9.9%
of the value of the outstanding capital stock of the corporation, and (ii) to refuse to transfer or issue shares of Series D Preferred Stock to any person whose acquisition of such
Series D Preferred Stock would, in the opinion of the Board of Directors, result in the direct or indirect ownership by that person of more than 9.9% of the value of the outstanding capital
stock of the Company. The purchase price for any shares of Series D Preferred Stock shall be equal to the fair market value of the shares reflected in the closing sales price for the shares, if
then listed on a national securities exchange, or if the shares are not then listed on a national securities exchange, the purchase price shall be equal to the redemption price of such shares of
Series D Preferred Stock. Payment of the purchase price shall be made within thirty days following the date set forth in the notice of call for purchase and shall be made in such manner as may
be determined by the Board of Directors of the Company. From and after the date fixed for purchase by the Board of Directors, as set forth in the notice, the holder of any shares so called for
purchase shall cease to be entitled to dividends, and other benefits with respect to such shares, excepting only the right to payment of the purchase price fixed as aforesaid. Any transfer of
Series D Preferred Shares that would create an actual or constructive owner of more than 9.9% of the value of the outstanding shares of capital stock of this Company shall be deemed void  ab initio and the intended transferee shall be deemed never to have had an interest therein. If the foregoing provision is determined to be void or
invalid by virtue of any legal decision, statute, rule or regulation, then the transferee of such Series D Preferred Shares shall be deemed, at the option of the corporation, to have acted as
agent on behalf of the Company in acquiring such shares and to hold such shares on behalf of the Company. 

        Notwithstanding
anything herein to the contrary, the Company and its transfer agent may refuse to transfer any shares of Series D Preferred Stock, passing either by voluntary
transfer, by operation of
law, or under the last will and testament of any shareholder if such transfer would or might, in the opinion of the Board of Directors or counsel to the Company, disqualify the Company as a Real
Estate Investment Trust under the Internal Revenue Code. Nothing herein contained shall limit the ability of the corporation to impose or to seek judicial or other imposition of additional
restrictions if deemed necessary or advisable to preserve the Company's tax status as a qualified Real Estate Investment Trust. Nothing herein contained shall preclude settlement of any transaction
entered into through the facilities of the New York Stock Exchange. 

        10.    No Preemptive Rights.    

        No
holder of Series D Preferred Shares shall be entitled to any preemptive rights to subscribe for or acquire any unissued shares of Preferred Stock of the Company (whether now or
hereafter authorized) or securities of the Company convertible into or carrying a right to subscribe to or acquire shares of Preferred Stock of the Company. 

        FOURTH:    The re-classification and classification of authorized but unissued shares as set forth in these Articles
Supplementary does not increase the authorized capital of the Company or the aggregate par value thereof. 

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        FIFTH:    These Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by
law. 

        SIXTH:    The undersigned President of the Company acknowledges these Articles Supplementary to be the corporate act of the
Company and, as to all matters or facts required to be verified under oath, the undersigned President of the Company acknowledges that to the best of his knowledge, information and belief, these
matters and facts are true in all material respects and that this statement is made under the penalties for perjury. 

[Balance of page intentionally left blank]

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        IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to be executed under seal in its name and on its behalf by its
President and attested to by its Secretary on this 10th day of February, 2004. 

	ATTEST	 	OMEGA HEALTHCARE INVESTORS, INC.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
 Name: Daniel J. Booth

Title: Secretary and Chief Operating Officer	 	 	 	
 Name: C. Taylor Pickett

Title: President and Chief Executive Officer

9

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Exhibit 10.1  

 
 

PURCHASE AGREEMENT    
    

        This Purchase Agreement (this "Agreement"), dated as of February 5, 2004, is by and among Omega Healthcare
Investors, Inc., a Maryland corporation (the "Company"), each Purchaser listed under the heading "Direct Purchasers" on  Schedule A (each, a
"Direct Purchaser"), each Investment Adviser listed under the heading
"Investment Advisers" on the signature pages hereto (each, an "Investment Adviser") who are entering into this Agreement on behalf of themselves (as to
paragraph 5 of this Agreement) and those Purchasers which are a fund or individual or other investment advisory client of such Investment Adviser listed under their respective names on  Schedule B (each, a "Client"), and each Broker-Dealer listed on  Schedule C (each, a "Broker-Dealer") which
is entering into this Agreement on behalf of itself
(as to paragraph 6 of this Agreement) and those Purchasers which are customers for which it has power of attorney to sign listed under their respective names on  Schedule C (each, a
"Customer"). Each of the Customers, Direct Purchasers and Clients are
referred to herein as individually, a "Purchaser" and collectively, the "Purchasers." 

        WHEREAS, the Purchasers desire to purchase from the Company (or their Investment Advisers and Broker-Dealers desire to purchase on their
behalf from the Company), and the Company desires to issue and sell to the Purchasers up to an aggregate
of                        shares of beneficial interest of the Company's 8.375% Series D
Cumulative Redeemable Preferred Stock, par value $1.00 per share (the "Preferred Shares"), with the number of Preferred Shares acquired by each
Purchaser set forth opposite the name of such Purchaser on Schedule A, Schedule B or  Schedule C, as the case may be. 

        NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereto agree as follows: 

        1.    Purchase and Sale.    Subject to the terms and conditions hereof, the Investment Advisers and the Broker-Dealers
(on behalf of Purchasers which are Clients and Customers, respectively) and the other Purchasers hereby severally and not jointly agree to purchase from the Company, and the Company agrees to issue
and sell to the several Purchasers the number of Preferred Shares set forth next to such Purchaser's name on Schedule A,  Schedule B or
Schedule C, as the case may be, at a price per share of $25.00 for an
aggregate purchase amount of $                        (the "Purchase Price") at the
Closing (as defined below). 

        2.    Representations and Warranties of Purchaser.    Each Purchaser represents and warrants with respect to itself
that: 

        (a)    Due Authorization.    Such Purchaser has full power and authority to enter into this Agreement and is duly
authorized to purchase the Preferred Shares in the amount set forth opposite its name on Schedule A,  Schedule B or Schedule C, as the case may be. This Agreement has been duly authorized by
such Purchaser and duly executed and delivered by or on behalf of such Purchaser. This Agreement constitutes a legal, valid and binding agreement of such Purchaser, enforceable against such Purchaser
in accordance with its terms except as may be limited by (i) the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights or
remedies of creditors or (ii) the effect of general principles of equity, whether enforcement is considered in a proceeding in equity or at law and the discretion of the court before which any
proceeding therefor may be brought (the "Enforceability Exceptions"). 

        (b)    Prospectus and Prospectus Supplement.    Such Purchaser has received a copy of the Company's Basic Prospectus
dated February 5, 2004 and Prospectus Supplement dated February 5, 2004 (each as defined below). 

        (c)    Ownership of Excess Shares of Capital Stock.    As of the date hereof and after giving effect to the
transaction contemplated hereby, such Purchaser, together with its subsidiaries and affiliates, does not own more than 9.8% in value of the issued and outstanding capital stock of the Company.
Purchaser expressly acknowledges that the provisions of the Company's Articles of 

 

Incorporation,
in general, and the Articles Supplementary relating to the Preferred Shares ("Articles Supplementary"), in particular, prohibit the
ownership by Purchaser (together with its subsidiaries and affiliates) of more than 9.9% in value of the Company's capital stock and, in the event Purchaser's Preferred Shares acquired pursuant to
this Agreement or otherwise constitute Excess Shares (as defined in the Articles Supplementary), the Company may repurchase such number of the Purchaser's Preferred Shares on the terms set forth in
the Articles Supplementary (or in the discretion of the Company's Board of Directors, shares of any other class of the Company's capital stock then owned by the Purchaser) as is necessary to cause
Purchaser to thereafter not own any Excess Shares. 

        3.    Representations and Warranties of Company.    The Company represents and warrants that: 

        (a)   The
Company meets the requirements for use of Form S-3 under the Securities Act of 1933, as amended (the
"Act"). The Company's Registration Statement (as defined below) was declared effective by the SEC (as defined below) and the Company has filed such
post-effective amendments thereto as may be required under applicable law prior to the execution of this Agreement and each such post-effective amendment became effective. The
SEC has not issued, and to the Company's knowledge, the SEC does not intend nor has it threatened to issue, a stop order with respect to the Registration Statement, nor has it otherwise suspended or
withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, nor, to the Company's knowledge, does it intend or has it threatened to do so. On the effective date,
(i) the Registration Statement complied in all material respects with the requirements of the Act and the rules and regulations promulgated under the Act (the
"Regulations"); at the effective date the Basic (as defined below) Prospectus complied, and at the Closing the Prospectus (as defined below) will
comply, in all material respects with the requirements of the Act and the Regulations; and (ii) the Registration Statement at its effective date and as amended or supplemented through the date
hereof and at the Closing did not, does not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading; and the Prospectus as of any such time, did not, does not and will not include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided,  however, that the
representations and warranties in this subsection shall not apply to statements in or omissions from the Prospectus made in reliance
upon and in conformity with information furnished to the Company in writing by or on behalf of any of the Purchasers, Cohen & Steers Capital Advisors, LLC, in its capacity as placement agent
("Placement Agent"), any Investment Advisers or Broker-Dealers, or any of their respective affiliates, expressly for use in the Prospectus. As used in
this Agreement, the term "Registration Statement" means the shelf registration statement on Form S-3 (File
No. 333-69675) as declared effective by the Securities and Exchange Commission (the "SEC"), including exhibits, financial statements,
schedules and documents incorporated by reference therein. The term "Basic Prospectus" means the prospectus included in the Registration Statement, as
amended, or as supplemented and filed with the SEC pursuant to Rule 424 under the Act in connection with the sale of the Preferred Shares hereunder. The term "Prospectus
Supplement" means the prospectus supplement as shall be filed with the SEC pursuant to Rule 424 under the Act in connection with the sale of the Preferred Shares
hereunder. The term "Prospectus" means the Basic Prospectus and the Prospectus Supplement taken together. Any reference in this Agreement to the
Registration Statement or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein as of the date hereof or the date of the Prospectus, as the case may
be, and any reference herein to any amendment or supplement to the Registration Statement or the Prospectus shall be deemed to refer to and include any documents filed after such date and through the
date of such amendment or supplement under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and so incorporated by reference. 

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        (b)   Since
the date as of which information is given in the Registration Statement and the Prospectus, except as otherwise stated therein, (A) there has been no
material adverse change or any development which could reasonably be expected to give rise to a prospective material adverse change in or affecting the condition, financial or otherwise, or the
earnings, business affairs or, to the Company's knowledge, business prospects of the Company and its subsidiaries, if any (the "Subsidiaries")
considered as one enterprise, whether or not arising in the ordinary course of business, (B) there have been no transactions entered into by the Company or any of its Subsidiaries, other than
those in the ordinary course of business, which are material with respect to the Company and its Subsidiaries considered as
one enterprise, and (C) other than regular quarterly dividends, there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its shares of equity
securities. 

        (c)   The
Company has been duly organized as a corporation and is validly existing in good standing under the laws of the State of Maryland. Each of the Subsidiaries of the
Company has been duly organized and is validly existing in good standing under the laws of its jurisdiction of organization. Each of the Company and its Subsidiaries has the required power and
authority to own and lease its properties and to conduct its business as described in the Prospectus; and each of the Company and its Subsidiaries is duly qualified to transact business in each
jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify would not have a
material adverse effect on the condition, financial or otherwise, or the earnings, business affairs or, to the Company's knowledge, business prospects of the Company and its Subsidiaries considered as
one enterprise. 

        (d)   As
of the date hereof, the authorized capital stock of the Company consisted of 100,000,000 shares of common stock, par value $.10 per share, and 10,000,000 preferred
shares, par value $1.00 per share, of which 38,032,224 common shares, 2,300,000 shares of 9.25% Series A Cumulative Preferred Stock (the "Series A Preferred
Shares"), 2,000,000 shares of 8.625% Series B Cumulative Preferred Stock (the "Series B Preferred Shares") and
1,048,420 shares of Series C Convertible Preferred Stock (the "Series C Preferred Shares") are issued and outstanding as of such date
(without giving effect to any preferred shares issued or to be issued as contemplated in this Agreement or the application of the proceeds of the offering contemplated hereby) and 4,652,000 preferred
shares are authorized and unissued of which 4,739,500 will be designated as Preferred Shares. The issued and outstanding shares of common stock and the Series, A, B and C Preferred Shares of the
Company have been duly authorized and validly issued and are fully paid and non-assessable; the Preferred Shares have been duly authorized and designated and are unissued, and when issued
in accordance with the terms of the Articles Supplementary and the Agreement and delivered as contemplated hereby, will be validly issued, fully paid and non-assessable; the Preferred
Shares, the common stock and the Series A, B and C Preferred Shares of the Company conform to all statements relating thereto contained in the Prospectus; and the issuance of the Preferred
Shares is not subject to preemptive or other similar rights. 

        (e)   Neither
the Company nor any of its Subsidiaries is in violation of its organizational documents or in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement, note, lease or other instrument or agreement to which the Company or any of its Subsidiaries is a party
or by which it or any of them are bound, or to which any of the property or assets of the Company or any of its Subsidiaries is subject, except where such violation or default would not have a
material adverse effect on the condition, financial or otherwise, or the earnings, business affairs or, to the Company's knowledge, business prospects of the Company and its Subsidiaries considered as
one enterprise; and the execution, delivery and performance of this Agreement, the execution and filing of the Articles Supplementary, and the issuance and delivery of the Preferred Shares and the 

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consummation
of the transactions contemplated herein have been duly authorized by all necessary action and will not conflict with or constitute a breach of, or material default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any material property or assets of the Company or any of its Subsidiaries pursuant to, any material contract, indenture, mortgage, loan
agreement, note, lease or other instrument or agreement to which the Company or any of its Subsidiaries is a party or by which it or any of them are bound, or to which any of the property or assets of
the Company or any of its Subsidiaries is subject, nor will any such action result in any violation of the provisions of the Articles of Incorporation of the Company, as amended and supplemented by
the Articles Supplementary, by-laws or other organizational documents of the Company or any of its Subsidiaries or any law, administrative regulation or administrative or court decree
applicable to the Company. 

        (f)    The
Company is organized in conformity with the requirements for qualification and, as of the date hereof and as of the Closing, operates in a manner that qualifies it
as a "real estate investment trust" under the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder and will be so qualified after giving effect to the sale of the
Preferred Shares. 

        (g)   The
Company is not required to be registered under the Investment Company Act of 1940, as amended. 

        (h)   There
is no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries, which is required to be disclosed in the Prospectus (other than as disclosed therein), or which is likely to result in any
material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or, to the Company's knowledge, business prospects of the Company and its Subsidiaries considered
as one enterprise, or which is likely to materially and adversely affect their respective property or assets or which is likely to materially and adversely affect the ability of the Company to
consummate the transactions contemplated by this Agreement; all pending legal or governmental proceedings to which the Company or any of its Subsidiaries is a party or of which any of their respective
property or assets is the subject which are not described in the Prospectus, including ordinary routine litigation incidental to its business, considered in the aggregate, are not material to the
business of the Company and its Subsidiaries considered as one enterprise if resolved in a manner unfavorable to the Company and its Subsidiaries. 

        (i)    No
authorization, approval or consent of any court or United States federal or state governmental authority or agency is necessary in connection with the sale of the
Preferred Shares hereunder, except such as may be required under the Act or the Regulations or state securities laws or real estate syndication laws. 

        (j)    The
Company and its Subsidiaries possess such certificates, authorities or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies
necessary to conduct the business now conducted by them, except where the failure to possess such certificates, authority or permits would not have a material adverse effect on the condition,
financial or otherwise, or the earnings, business affairs or, to the Company's knowledge, business prospects of the Company and its Subsidiaries considered as one enterprise. Neither the Company nor
any of its Subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit which, singly or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would materially and adversely affect the condition, financial or otherwise, or the earnings, business affairs or, to the Company's knowledge, business
prospects of the Company and its Subsidiaries considered as one enterprise, nor, to the knowledge of the Company, are any such proceedings threatened or contemplated. 

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        (k)   The
Company has full power and authority to enter into this Agreement, and this Agreement has been duly authorized, executed and delivered by the Company and constitutes
a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms except as may be limited the Enforceability Exceptions. 

        (l)    The
Articles Supplementary and the filing of the Articles Supplementary with the State Department of Assessments and Taxation of Maryland on behalf of the Company have
each been duly authorized by the Company; the Articles Supplementary have been filed with the State Department of Assessments and Taxation of Maryland on behalf of the Company and constitute a valid
and legally binding supplement to the Articles of Incorporation of the Company enforceable against the Company in accordance with its terms, except as enforceability may be limited by the
Enforceability Exceptions. 

        (m)  As
of the dates set forth therein or incorporated by reference, the Company had good and marketable title to all of the properties and assets reflected in the audited
financial statements contained in the Prospectus, subject to no lien, mortgage, pledge or encumbrance of any kind except those reflected in such financial statements (or as otherwise described in the
Prospectus) or which are not material or which constitute customary provisions of mortgage loans secured by the Company's properties creating obligations of the Company with respect to proceeds of the
properties, environmental liabilities and other customary protections for the mortgagees. 

        (n)   Neither
the issuance, sale and delivery of the Preferred Shares nor the application of the proceeds thereof by the Company as described in the Prospectus will cause the
Company to violate or be in violation of Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors. 

        (o)   The
statements set forth in the Basic Prospectus under the caption "Description of Securities—Preferred Stock" and the statements set forth in the Prospectus
Supplement under the caption "Description of the Series D Preferred Shares," in each case, in so far as such statements purport to summarize provisions of laws or documents referred to therein,
are correct in all material respects and fairly present the information required to be presented therein. 

        4.    Representation and Warranty of the Investment Advisers.    To induce the Company to enter into this Agreement,
each of the Investment Advisers hereby represents and warrants that: 

        (a)   It
is an investment adviser duly registered with the SEC under the Investment Advisers Act of 1940. 

        (b)   It
has been duly authorized to act as investment adviser on behalf of each Client on whose behalf it is signing this Agreement (as identified under the name of such
Investment Adviser on Schedule B hereto) and has the sole authority to make the investment decision to purchase Preferred Shares hereunder on
behalf of such Client. 

        (c)   It
has the power and authority to enter into and execute this Agreement on behalf of each of the Clients listed under its name on  Schedule B hereto. 

        (d)   This
Agreement has been duly authorized, executed and delivered by it and, assuming it has been duly authorized, executed and delivered by the Company, constitutes a
legal, valid and binding agreement of such Investment Adviser, enforceable against it in accordance with its terms except as may be limited by the Enforceability Exceptions. 

        (e)   It
has received a copy of the Company's Basic Prospectus dated February 5, 2004 and Prospectus Supplement dated February 5, 2004. 

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        5.    Representation and Warranty of the Broker-Dealers.    To induce the Company to enter into this Agreement, each
Broker-Dealer represents and warrants that: 

        (a)   It
has delivered a copy of the Prospectus to each Purchaser set forth under its name on Schedule C hereto. 

        (b)   It
has been granted a duly authorized power-of-attorney to execute and deliver this Agreement on behalf of each Customer on whose behalf it is
signing this Agreement (as identified under the name of such Broker-Dealer on Schedule C hereto) and such power has not been revoked. 

        (c)   This
Agreement has been duly authorized, executed and delivered by it and, assuming it has been duly authorized, executed and delivered by the Company, constitutes a
legal, valid and binding agreement of such Broker-Dealer, enforceable against it in accordance with its terms except as may be limited by the Enforceability Exceptions. 

        6.    Conditions to Obligations of the Parties.    The Purchasers' several obligation to purchase the Preferred Shares
shall be subject to the following conditions having been met: 

	(i)
	the
representations and warranties set forth in Section 4 of this Agreement shall be true and correct with the same force and effect as though expressly made at
and as of the Closing,

	(ii)
	the
Purchasers shall have received an opinion from Munsch Hardt, dated as of the date of the Closing, substantially in the form attached hereto as  Exhibit A,

	(iii)
	the
Purchasers shall have received an opinion from Powell, Goldstein, Frazer & Murphy, LLP, dated as of the date of the Closing, substantially in the form
attached hereto as Exhibit B, and

	(iv)
	the
Placement Agent shall have received a comfort letter from Ernst & Young, LLP, dated as of the Closing, substantially in the form attached hereto as  Exhibit C. 

        7.    Closing.    Provided that the conditions set forth in Section 7 hereto and the last sentence of this
Section 8 have been met or waived at such time, the transactions contemplated hereby shall be consummated on February 10, 2004, or at such other time and date as the parties hereto shall
agree (each such time and date of payment and delivery being herein called the "Closing"). At the Closing, settlement shall occur through
Jeffries & Company, or an affiliate thereof, on a delivery versus payment basis through the DTC ID System. 

        8.    Covenants.    The Company hereby covenants and agrees that (a) as soon as practicable, subject to the
Purchasers' ownership satisfying the distribution requirements for listing, the Company shall apply for listing the Preferred Shares for trading on the New York Stock Exchange
("NYSE") and will use its reasonable best efforts to obtain approval of the NYSE with respect to such listing as soon as practicable within
30 days after the Closing Date, and if such approval is not so obtained within 30 days, to continue to use its reasonable best efforts to obtain such approval as soon as practicable
thereafter and (b) subject to all Purchasers consummating the purchase of the Preferred Shares at the Closing, the Company will use the proceeds of the offering contemplated hereby as set forth
under the caption "Use of Proceeds" in the Prospectus Supplement. 

        9.    Governing Law.    This Agreement shall be construed in accordance with and governed by the substantive laws of
the State of New York, without regard to conflict of laws principles. 

        10.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and may be amended only in a writing that is executed by each of the parties hereto. 

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        11.    Counterparts.    This Agreement may be executed in separate counterparts, each of which shall be deemed an
original, and all of which together shall be deemed to constitute one and the same instrument. Executed counterparts may be delivered by facsimile. 

        12.    Construction.    When used herein, the phrase "to the knowledge of" the Company or "known to" the Company or
any similar phrase means the actual knowledge of the Chief Executive Officer, Chief Financial Officer or Chief Operating Officer of the Company and includes the knowledge that such officers would have
obtained of the matter represented after reasonable due and diligent inquiry of those employees of the Company whom such officers reasonably believe would have actual knowledge of the matters
represented. 

        IN WITNESS WHEREOF, the parties hereto have caused this Purchase Agreement to be executed and delivered as of the date first above
written. 

	 	 	OMEGA HEALTHCARE INVESTORS, INC.
	

 	
 	
By:	

 Name: C. Taylor Pickett

Title: Chief Executive Officer

7

 
(Signature Pages Omitted)  

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PURCHASE AGREEMENT

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