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                                                                    EXHIBIT 10.7

              SECOND AMENDMENT TO REPLACEMENT REDUCED AND MODIFIED
                       RENEWAL REVOLVING PROMISSORY NOTE

         THIS SECOND AMENDMENT TO REPLACEMENT REDUCED AND MODIFIED RENEWAL
REVOLVING PROMISSORY NOTE is made and entered into by and among AMSOUTH BANK
(the "Bank") and DIVERSICARE MANAGEMENT SERVICES, CO., a Tennessee corporation
(the "Borrower").

                              W I T N E S S E T H :

         WHEREAS, Borrower executed to Bank that certain Replacement Reduced and
Modified Renewal Revolving Promissory Note dated October 29, 2004, in the
original principal amount of TWO MILLION FIVE HUNDRED THOUSAND AND NO/100
($2,500,000.00) DOLLARS, as further amended, extended and lowered to
$2,300,000.00 pursuant to that First Amendment to Replacement Reduced and
Modified Renewal Revolving Promissory Note dated January 29, 2005 (the "Note");
and

         WHEREAS, Borrower has requested, and Bank has agreed, to extend the
Maturity Date under the Note.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in accordance with the terms
and conditions of that Eighth Amendment to Master Amendment and Loan Documents
executed by Bank, and Debtors, as defined therein, to be effective as of January
29, 2006, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

         1. That as of the effective date hereof, the Note has a principal
balance of $0.00.

         2. The first and second full paragraphs of the Note are hereby deleted
entirely, and the following language is substituted instead:

                  FOR VALUE RECEIVED, the undersigned, DIVERSICARE MANAGEMENT
         SERVICES CO., a Tennessee corporation (the "Borrower"), promises to pay
         to the order of AMSOUTH BANK (the "Bank"), in lawful currency of the
         United States of America, at AmSouth Center, 315 Deaderick Street,
         Nashville, Tennessee 37237, or at such other place as the holder from
         time to time may designate in writing, the principal sum of TWO MILLION
         THREE HUNDRED THOUSAND AND NO/100 ($2,300,000.00) DOLLARS, or so much
         thereof as may be advanced hereunder in accordance with the terms of a
         Master Amendment to Loan Documents and Agreement dated effective
         October 1, 2000 executed between Bank, Borrower, and other
         subsidiaries, or affiliates of Borrower, all of which, including
         Borrower, are defined as "Debtors" therein, as amended (the "Master
         Amendment"). Interest shall accrue on the principal balance outstanding
         from and after the effective date hereof at the Bank's Prime

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         Rate plus one half of one percent (0.50%) per annum, provided that the
         interest rate shall not, during the term hereof, exceed nine and
         one-half percent (9.5%) per annum so long as there is no default
         hereunder, after which time interest shall accrue at the default rate
         as set forth below (the "Default Rate"). Interest shall be due and
         payable monthly commencing on the first (1st) day of each month
         commencing on May 29, 2005. All principal and unpaid interest shall be
         payable at maturity on the 29th day of January 2008 (the "Maturity
         Date"). The "Prime Rate" of Bank is the "Prime Rate" in effect from
         time to time, as designated by Bank, such rate being one of the base
         rates Bank establishes from time to time for lending purposes and not
         necessarily being the lowest rate offered by Bank. In the event the
         Prime Rate should become unavailable for any reason, then the interest
         rate hereunder shall be based upon a reasonably comparable index for
         determining variable interest rates chosen by Bank in good faith.

                  The whole of the principal sum and, to the extent permitted by
         law, any accrued interest, shall bear, after default or maturity,
         interest at the lesser of (i) the highest lawful rate then in effect
         pursuant to applicable law, or (ii) the rate that is four percentage
         points (4%) in excess of Lender's Prime Rate, as it varies from time to
         time.

         3. The Note is amended as stated herein, but no further or otherwise,
and the terms and provisions of the Note, as hereby amended, shall be and
continue to be in full force and effect. Nothing herein is intended to operate
to release or diminish any right of Bank under the Note or with respect to any
collateral securing the Note or with respect to any guaranty or suretyship
agreement for the Note, all of which shall remain in full force and effect. This
instrument constitutes the entire agreement of the parties with respect to the
subject matter hereof.

         IN WITNESS WHEREOF, this instrument has been executed to be effective
on the 29th day of January, 2006.

                                      BORROWER:

                                      DIVERSICARE MANAGEMENT SERVICES CO.,
                                      a Tennessee corporation

                                      By: /s/ William R. Council
                                          --------------------------------------
                                               William R. Council, President

                                      BANK:

                                      AMSOUTH BANK

                                      By: /s/ Tim McCarthy, Sr.
                                          --------------------------------------
                                               Tim McCarthy, Sr. Vice President

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                                                                    EXHIBIT 10.8
                                                                    (Afton Oaks)

                    NINTH AMENDMENT TO PROJECT LOAN AGREEMENT

         THIS NINTH AMENDMENT TO PROJECT LOAN AGREEMENT (the "Ninth Amendment")
is effective as of April 1, 2006, by and between GMAC COMMERCIAL MORTGAGE
CORPORATION, a California corporation (the "Lender") and DIVERSICARE AFTON OAKS,
LLC, a Delaware limited liability company (the "Borrower").

                                    RECITALS

         A. The Lender, ADVOCAT INC., a Delaware corporation ("Advocat"),
DIVERSICARE MANAGEMENT SERVICES CO., a Tennessee corporation and wholly-owned
subsidiary of Advocat ("DMSC"), DIVERSICARE LEASING CORP. ("DLC"), a Tennessee
corporation and wholly-owned subsidiary of AFI (defined below), ADVOCAT
ANCILLARY SERVICES, INC. ("AAS"), a Tennessee corporation and wholly-owned
subsidiary of DMSC, DIVERSICARE CANADA MANAGEMENT SERVICES CO., INC. ("DCMS"), a
corporation organized under the laws of Canada and wholly-owned subsidiary of
DLC, FIRST AMERICAN HEALTH CARE, INC. ("FAHC"), an Alabama corporation and
wholly-owned subsidiary of DLC, DIVERSICARE LEASING CORP. OF ALABAMA ("DLCA"),
an Alabama corporation and wholly-owned subsidiary of DLC, ADVOCAT DISTRIBUTION
SERVICES, INC. ("ADS"), a Tennessee corporation and wholly-owned subsidiary of
DMS, and ADVOCAT FINANCE, INC. ("AFI"), a Delaware corporation and wholly-owned
subsidiary of DMS (DLC, AAS, DCMS, DGP, FAHC, ADS, DLCA and AFI, together with
any other subsidiaries of Advocat or of the Subsidiaries formed or acquired
after the date hereof, are sometimes hereinafter referred to collectively as the
"Subsidiaries") entered into that certain Project Loan Agreement dated December
27, 1996, as amended by that certain First Amendment to Project Loan Agreement
dated April 30, 2000, by that certain Second Amendment to Project Loan Agreement
dated June 30, 2000, by Memorandum dated September 8, 2000, by that certain
Third Amendment to Project Loan Agreement dated September 29, 2000, by that
certain Fourth Amendment to Project Loan Agreement dated December 31, 2000, and
by that certain Fifth Amendment to Project Loan Agreement and Comprehensive
Amendment of All Other Loan Documents dated February 28, 2001, as amended by
that certain Sixth Amendment to Project Loan Agreement dated December 23, 2002,
as amended by that certain Seventh Amendment to Project Loan Agreement dated
March 31, 2004, and as amended by that certain Eighth Amendment to Project Loan
Agreement dated April 1, 2005 (the "Loan Agreement"). Pursuant to the terms of
the Fifth Amendment to Project Loan Agreement and Comprehensive Amendment of All
Other Loan Documents dated February 28, 2001, the Borrower assumed all rights,
obligations and benefits of DMSC in, to and under the Loan Document and all
Other Loan Documents.

         B. Pursuant to the terms of the Loan Agreement, Lender made a Loan to
DMSC, which was assumed by Borrower, in the principal amount of $3,750,000.00
(the "Loan"). Unless otherwise defined herein, capitalized terms shall have the
meanings assigned to them in the Loan Agreement.

         C. The Loan matures on April 1, 2006.

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         D. The Borrower has requested that the Lender extend the Maturity Date,
and the Lender has agreed subject to the conditions and terms evidenced herein.

                                    AGREEMENT

         NOW THEREFORE, in consideration of the above Recitals, the Borrower and
the Lender hereby amend the Loan Agreement as follows:

         In Article I, the definition of Maturity Date is hereby amended to
state "Maturity Date means July 1, 2006."

         Except as expressly amended hereby, the Loan Agreement shall remain
unchanged and shall continue in full force and effect.

         IN WITNESS WHEREOF, the Borrower and the Lender have caused this Ninth
Amendment to be executed by their duly authorized representatives, as of the
date first set forth above.

                                     BORROWER:

                                     DIVERSICARE AFTON OAKS, LLC, a Delaware
                                     limited liability company

                                     By:  Diversicare Leasing Corp., a Tennessee
                                     corporation, its sole member

                                     /s/ Glynn Riddle
                                     -------------------------------------------
                                     Glynn Riddle, Chief Financial Officer

                                     LENDER:

                                     GMAC COMMERCIAL MORTGAGE CORPORATION,
                                     a California corporation

                                     By: /s/ Laura Y. McDonald
                                         ---------------------------------------
                                       Its: Senior Vice President
                                            ------------------------------------

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