Document:

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                                                                    EXHIBIT 10.2

                                FOURTH AMENDMENT

                                       TO

                                  REVENUE BOND

                                 LEASE AGREEMENT

                                       and

                         MORTGAGE AND INDENTURE OF TRUST

         THIS FOURTH AMENDMENT is entered into by and between THE MEDICAL CLINIC
BOARD OF THE CITY OF HARTFORD, ALABAMA (the "Board"), DIVERSICARE LEASING CORP.,
(the "Tenant"), COLONIAL BANK ("Colonial"), CITY BANK OF HARTFORD ("City Bank")
and SLOCOMB NATIONAL BANK ("Slocomb"), and is effective as of May 2, 2003.

         WHEREAS, on June 28, 1996 the Board executed and delivered to Colonial
a $2,450,000.00 Mortgage and Indenture of Trust (the "First Mortgage") on the
Project (as that term is defined in the First Mortgage). This First Mortgage
pertains to the property described on Exhibit "A" attached hereto and is
recorded in Official Record Book 273 at Pages 105 to 139 in the Office of the
Judge of Probate of Geneva County, Alabama. This First Mortgage secures the
obligations due under Revenue Bond - Series 1996 No. R1 (Diversicare Leasing
Corp. Project) issued by the Board in the original principal amount of
$2,450,000.00 (the "Colonial Bond").

         WHEREAS, on June 28, 1996 the Board executed and delivered to Slocomb a
$83,500.00 Mortgage and Indenture of Trust (the "Second Mortgage") on the
Project (as that term is defined in the Second Mortgage). This Second Mortgage
pertains to the property described on Exhibit "A" attached hereto and is
recorded in Official Record Book 273 at Pages 140 to 174 in the Office of the
Judge of Probate of Geneva County, Alabama. This Second Mortgage secures the
obligations due under a Revenue Bond - Series 1996 No. R2 (Diversicare Leasing
Corp. Project) issued by the Board in the original principal amount of
$83,500.00 (the "Slocomb Bond").

         WHEREAS, on June 28, 1996 the Board executed and delivered to City Bank
a $83,500.00 Mortgage and Indenture of Trust (the "Third Mortgage") on the
Project (as that term is defined in the Third Mortgage). This Third Mortgage
pertains to the property described on Exhibit "A" attached hereto and is
recorded in Official Book 273 at Pages 175 to 209 in the Office of the Judge of
Probate of Geneva County, Alabama. This Third Mortgage secures the obligations
due under a Revenue Bond - Series 1996 No. R3 (Diversicare Leasing Corp.
Project) issued by the Board in the

                                       1
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original principal amount of $83,500.00 (the "City Bank Bond").

         WHEREAS, the Second Mortgage and the Third Mortgage and the
corresponding Slocomb Bond and the City Bank Bond are in parity each with the
other.

         WHEREAS, on June 28, 1996, the Board and Tenant entered into a Lease
Agreement (the "Lease") pertaining to the property described on Exhibit "A"
attached hereto ("the Leased Realty") and the Project (as that term is defined
in the Lease). The Lease is recorded in Official Book 273 at Pages 210- to 246
in the Office of the Judge of Probate of Geneva County, Alabama.

         WHEREAS, on August 1, 2001 the Board, the Tenant, Colonial, City Bank
and Slocomb entered into a First Amendment to Revenue Bond, Lease Agreement and
Mortgage and Indenture of Trust (the "First Amendment"). The First Amendment is
recorded in Official Book 413 at Pages 125 to 135 in the Office of the Judge of
Probate of Geneva County, Alabama.

         WHEREAS, effective August 1, 2002 the Board, the Tenant, Colonial, City
Bank and Slocomb entered into a Second Amendment to Revenue Bond, Lease
Agreement and Mortgage and Indenture of Trust (the "Second Amendment"). The
Second Amendment is recorded in Official Book 445 at Pages 281 to 292 in the
Office of the Judge of Probate of Geneva County, Alabama.

         WHEREAS, effective November 2, 2002 the Board, the Tenant, Colonial,
City Bank and Slocomb entered into a Third Amendment to Revenue Bond, Lease
Agreement and Mortgage and Indenture of Trust (the "Third Amendment"). The Third
Amendment is recorded in Official Book 453 at Pages 149 to 160 in the Office of
the Judge of Probate of Geneva County, Alabama.

         WHEREAS, Tenant has requested Board, Colonial, City Bank and Slocomb to
extend the maturity date of the Colonial Bond, the City Bank Bond and the
Slocomb Bond to November 2, 2003, and the Board, Colonial, City Bank, and
Slocomb are agreeable to do so provided Tenant, Board, Colonial, City Bank and
Slocomb enter into this agreement and cause the First Mortgage, Second Mortgage,
Third Mortgage, Colonial Bond, City Bank Bond, Slocomb Bond, the Lease, and the
documents executed in connection therewith to be modified as provided herein and
to be ratified and reconfirmed as so modified.

         NOW THEREFORE, in consideration of the terms and conditions contained
herein, and to induce Board, Colonial, City Bank and Slocomb to extend the
maturity date of the Colonial Bond, the City Bank Bond and the Slocomb Bond, the
First Mortgage, the Second Mortgage, the Third Mortgage, the Colonial Bond, the
City Bank Bond, the Slocomb Bond, the Lease and the agreements executed in
connection therewith are hereby amended as follows:

         1.       The maturity date or final payment date of the Colonial Bond
                  is hereby extended to November 2, 2003, the number of payments
                  due on the Colonial Bond is increased from fifty nine (59) to
                  eighty-seven (87), and the second, third and fourth sentence
                  of the Colonial Bond are hereby amended to state:

                                       2
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                           "Such principal and interest shall mature and be
                           payable (unless duly redeemed prior thereto) in
                           eighty-seven (87) consecutive monthly payments on the
                           second (2nd) day of each month from August 2, 1996,
                           through and including October 2, 2003, consisting of
                           the amount of principal and interest at the greater
                           of the Base Lending Rate of Bondholder plus one
                           percent (1.00%) or 6.00% that is necessary to
                           amortize the outstanding balance at such rate by
                           August 2, 2021, and a final payment due on November
                           2, 2003, in the amount of all principal and interest
                           outstanding on this obligation. Interest on the
                           outstanding balance shall be calculated on the
                           360-day accrual method by multiplying the product of
                           the principal amount outstanding by the applicable
                           rate stated herein by the actual number of days
                           elapsed divided by 360. The applicable interest rate
                           is the greater of the Base Lending Rate plus one
                           percent (1.00), or 6.00%."

         2.       The maturity date or final payment date of the Slocomb Bond is
                  hereby extended to November 2, 2003, the number of payments
                  due on the Slocomb Bond is increased from fifty nine (59) to
                  eighty-seven (87), and the second, third and fourth sentence
                  of the Slocomb Bond is hereby amended to state:

                           "Such principal and interest shall mature and be
                           payable (unless duly redeemed prior thereto) in
                           eighty-seven (87) consecutive monthly payments on the
                           second (2nd) day of each month from August 2, 1996,
                           through and including October 2, 2003, consisting of
                           the amount of principal and interest at the greater
                           of the Base Lending Rate of Bondholder plus one
                           percent (1.00%) or 6.00% that is necessary to
                           amortize the outstanding balance at such rate by
                           August 2, 2021, and a final payment due on November
                           2, 2003, in the amount of all principal and interest
                           outstanding on this obligation. Interest on the
                           outstanding balance shall be calculated on the
                           360-day accrual method by multiplying the product of
                           the principal amount outstanding by the applicable
                           rate stated herein by the actual number of days
                           elapsed divided by 360. The applicable interest rate
                           is the greater of the Base Lending Rate plus one
                           percent (1.00), or 6.00%."

         3.       The maturity date or final payment date of the City Bank Bond
                  is hereby extended to November 2, 2003, the number of payments
                  due on the City Bank Bond is increased from fifty nine (59) to
                  eighty-seven (87), and the second, third and fourth sentence
                  of the City Bank Bond is hereby amended to state:

                           "Such principal and interest shall mature and be
                           payable (unless duly redeemed prior thereto) in
                           eighty-seven (87) consecutive monthly payments on the
                           second (2nd) day of each month from August 2, 1996,
                           through and including October 2, 2003, consisting of
                           the amount of principal and interest at the greater
                           of the Base Lending Rate of Bondholder plus one
                           percent (1.00%) or 6.00% that is necessary to
                           amortize the outstanding balance at

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                           such rate by August 2, 2021, and a final payment due
                           on November 2, 2003, in the amount of all principal
                           and interest outstanding on this obligation. Interest
                           on the outstanding balance shall be calculated on the
                           360-day accrual method by multiplying the product of
                           the principal amount outstanding by the applicable
                           rate stated herein by the actual number of days
                           elapsed divided by 360. The applicable interest rate
                           is the greater of the Base Lending Rate plus one
                           percent (1.00), or 6.00%."

         4.       The form of the Colonial Bond contained in the preamble of the
                  First Mortgage is amended in conformity with paragraph 1
                  hereof.

         5.       The form of the Slocomb Bond contained in the preamble of the
                  Second Mortgage is amended in conformity with paragraph 2
                  hereof.

         6.       The form of the City Bank Bond contained in the preamble of
                  the Third Mortgage is amended in conformity with paragraph 3
                  hereof.

         7.       The Lease is hereby amended as follows:

                  a.       The duration of the Lease Term as set forth in
                           Section 3.1 of the Lease is extended from midnight of
                           August 2, 2001 to midnight of November 2, 2003, and
                           the first sentence of Section 3.1 of the Lease is
                           hereby amended as follows:

                                    "The term of this Lease Agreement and of the
                                    Lease herein made shall begin on the date of
                                    delivery of this Lease Agreement and,
                                    subject to the provisions of this Lease
                                    Agreement, shall continue until midnight of
                                    November 2, 2003.

                  b.       Tenant's option to renew contained in Section 9.2 of
                           the Lease is only exercisable upon full payment of
                           the Bonds.

         8.       Tenant acknowledges its obligations under the Lease to pay the
                  Colonial Bond, the City Bank Bond and the Slocomb Bond in
                  installments when same comes due in accordance with the terms
                  thereof, and in full upon maturity.

         9.       Tenant further reaffirms and ratifies the Security Agreement
                  entered into by Tenant for the benefit of Colonial, and agrees
                  to be bound by the terms thereof.

         10.      Tenant further reaffirms and ratifies the Security Agreement
                  entered into by Tenant for the benefit of Slocomb, and agrees
                  to be bound by the terms thereof.

         11.      Tenant further reaffirms and ratifies the Security Agreement
                  entered into by Tenant for the benefit of City Bank, and
                  agrees to be bound by the terms thereof.

         12.      Tenant further reaffirms and ratifies the Hazardous Substances
                  Indemnification and

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                  Warranty Agreement entered into by Tenant for the benefit of
                  Colonial, and agrees to be bound by the terms thereof.

         13.      Tenant further reaffirms and ratifies the Hazardous Substances
                  Indemnification and Warranty Agreement entered into by Tenant
                  for the benefit of Slocomb, and agrees to be bound by the
                  terms thereof.

         14.      Tenant further reaffirms and ratifies the Hazardous Substances
                  Indemnification and Warranty Agreement entered into by Tenant
                  for the benefit of City Bank, and agrees to be bound by the
                  terms thereof.

In addition hereto, all of the documents and agreements executed in connection
with the First Mortgage, the Second Mortgage, the Third Mortgage, the Colonial
Bond, the City Bank Bond, the Slocomb Bond, the Lease or the agreements executed
in connection therewith or pertaining thereto (the "Agreements") are hereby
amended in accordance with the terms as herein cited.

Tenant and Board hereby agree and direct Colonial, City Bank and Slocomb to take
any action necessary to conform the First Mortgage, the Second Mortgage, the
Third Mortgage, the Colonial Bond, the City Bank Bond, the Slocomb Bond, the
Lease and the Agreements as to the terms as herein cited and by these presents
accepts and confirms their liability under such documents and agreements with
the terms as herein modified.

All of the terms and provisions of the Third Amendment, Second Amendment, First
Amendment, First Mortgage, Second Mortgage, Third Mortgage, Colonial Bond, City
Bank Bond, Slocomb Bond and the Lease not specifically amended herein, are
hereby reaffirmed, ratified and restated. This Amendment amends the agreements
and is not a novation thereof.

This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original and all of which, when taken together, shall
constitute one and the same instrument.

This Agreement shall be construed and enforced in accordance with the laws of
the State of Alabama.

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         IN WITNESS WHEREOF, we have hereunto set our hands and seals effective
as of the 2st day of May, 2003.

BOARD                                  THE MEDICAL CLINIC BOARD OF THE
                                       CITY OF HARTFORD, ALABAMA

SEAL                                   BY: /s/ Hubert B. Strickland
                                           ----------------------------------
                                              (Its Chairman)
ATTEST:

/s/ David W. Rousseau
-------------------------------
(Its Secretary-Treasurer)

STATE OF ALABAMA
COUNTY OF GENEVA

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that Hubert B. Strickland, whose name as Chairman of THE
MEDICAL CLINIC BOARD OF THE CITY OF HARTFORD, ALABAMA, a corporation, is signed
to the foregoing instrument and who is known to me, acknowledged before me on
this day that, being informed of the contents of said instrument, he/she, as
such officer, and with full authority, executed the same voluntarily, as an act
of said corporation, acting in its capacity as aforesaid.

         Given under my hand and official seal, this the 27th day of July, 2003.

                                       /s/ Dolores S. Jones
                                       ---------------------------------------
                                       NOTARY PUBLIC
                                       My Commission Expires:     5-16-2004
                                                              ----------------

                                       6
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TENANT:                                DIVERSICARE LEASING CORP., a Tennessee
                                       Corporation

                                       BY: /s/ William R. Council, III
                                          ------------------------------------
                                              (Its President)

STATE OF TENNESSEE
         --------------------------
COUNTY OF WILLIAMSON
          -------------------------

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that William R. Council, III, whose name as President &
CEO of DIVERSICARE LEASING CORP., a corporation, is signed to the foregoing
instrument and who is known to me, acknowledged before me on this day that,
being informed of the contents of said instrument, he/she, as such officer, and
with full authority, executed the same voluntarily, as an act of said
corporation, acting in its capacity as aforesaid.

         Given under my hand and official seal, this the 24th day of July, 2003.

                                       /s/ Jacqueline S. Reed
                                       ---------------------------------------
                                       NOTARY PUBLIC

                                       My Commission Expires:      2/20/2006
                                                              ----------------

                                       7
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COLONIAL                               COLONIAL BANK

                                       BY: /s/ Blaine Brint
                                          -------------------------------------
                                                (Its Senior Vice President)
                                                     --------------------------

STATE OF ALABAMA
COUNTY OF JEFFERSON

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that Blaine Brint, whose name as Sr. V.P. of COLONIAL
BANK, a corporation, is signed to the foregoing instrument and who is known to
me, acknowledged before me on this day that, being informed of the contents of
said instrument, he/she, as such officer, and with full authority, executed the
same voluntarily, as an act of said corporation, acting in its capacity as
aforesaid.

         Given under my hand and official seal, this the 24th day of July, 2003.

                                       /s/ Jennifer M. Crosby
                                       ---------------------------------------
                                       NOTARY PUBLIC

                                       My Commission Expires:     10/19/03
                                                              ----------------

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CITY BANK                              CITY BANK OF HARTFORD

                                       BY: /s/ W.H. Kennedy
                                          ------------------------------------
                                             (Its Pres/CEO)
                                                  ----------------------

STATE OF ALABAMA
COUNTY OF GENEVA

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that W.H. Kennedy, whose name as President & CEO of CITY
BANK OF HARTFORD, a corporation, is signed to the foregoing instrument and who
is known to me, acknowledged before me on this day that, being informed of the
contents of said instrument, he/she, as such officer, and with full authority,
executed the same voluntarily, as an act of said corporation, acting in its
capacity as aforesaid.

         Given under my hand and official seal, this the 23rd day of July, 2003.

                                       /s/ Joy H. Enfinger
                                       ---------------------------------------
                                       NOTARY PUBLIC
                                       My Commission Expires:    7/20/04
                                                             -----------------

                                       9

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SLOCOMB:                               SLOCOMB NATIONAL BANK

                                       BY: /s/ Joseph H. Johnson
                                          --------------------------------------
                                             (Its E.V.P.)
                                                  ------------------------

STATE OF ALABAMA
COUNTY OF GENEVA

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that Joseph H. Johnson, whose name as Executive Vice
President of SLOCOMB NATIONAL BANK, a corporation, is signed to the foregoing
instrument and who is known to me, acknowledged before me on this day that,
being informed of the contents of said instrument, he/she, as such officer, and
with full authority, executed the same voluntarily, as an act of said
corporation, acting in its capacity as aforesaid.

         Given under my hand and official seal, this the 24th day of July, 2003.

                                       /s/ Pamela J. Spivey
                                       ----------------------------------------
                                       NOTARY PUBLIC
                                       My Commission Expires:     3/10/07
                                                             ------------------

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                    ACKNOWLEDGEMENT AND CONSENT BY GUARANTOR

         ADVOCAT INC. (the "Guarantor"), the guarantor of i) the Colonial Bond,
ii) the Slocomb Bond, iii) the City Bank Bond, iv) the obligations of Tenant to
Colonial, v) the obligations of Tenant to Slocomb, and vi) the obligations of
Tenant to City Bank, hereby acknowledges and consents to this First Amendment,
and Guarantor's obligations under its guaranty thereto, and hereby reaffirms and
restates its guaranty obligations to Colonial, Slocomb, and City Bank as
evidenced by those certain Guaranty(s) dated June 28, 1996 and delivered to
Colonial, Slocomb and City Bank.

                                       ADVOCAT INC.

                                       BY: /s/ William R. Council, III
                                          --------------------------------------
                                              (Its President)
                                                  ------------------------

STATE OF TENNESSEE
         -----------------------------------
COUNTY OF WILLIAMSON
          ----------------------------------

         I, the undersigned, a Notary Public in and for said County, in said
State, hereby certify that William R. Council, III, whose name as President &
CEO of ADVOCAT INC, a corporation, is signed to the foregoing instrument and who
is known to me, acknowledged before me on this day that, being informed of the
contents of said instrument, he/she, as such officer, and with full authority,
executed the same voluntarily, as an act of said corporation, acting in its
capacity as aforesaid.

         Given under my hand and official seal, this the 24th day of July, 2003.

                                       /s/ Jacqueline S. Reed
                                       -----------------------------------------
                                       NOTARY PUBLIC
                                       My Commission Expires:     2/20/2006
                                                             -------------------

                                       11
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                                   EXHIBIT "A"

--------------------------------------------------------------------------------

A parcel of land in the Town of Hartford, Geneva County, Alabama and being more
particularly described as follows: Commencing at the accepted Southeast corner
of the SW 1/4 of the NE 1/4 of Section 31, Township 2 North, Range 24 East, and
thence South 86 degrees 55 minutes 23 seconds West 518.20 feet to the East
right-of-way of Toro Road, thence North 62 degrees 02 minutes 38 seconds West
along the East right-of-way of said road 321.72 feet, thence North 47 degrees 36
minutes 56 seconds West along the East right-of-way of said road a chord
distance of 479.47 feet to the Point of Beginning; and thence North 25 degrees
18 minutes 41 seconds West along the East right-of-way of said road a chord
distance of 258.31 feet, thence North 17 degrees 54 minutes 10 seconds West
along the East right-of-way of said road 216.53 feet, thence North 86 degrees 42
minutes 53 seconds East along an existing fence 187.87 feet, thence North 86
degrees 51 minutes 44 seconds East 418.20 feet, thence South 03 degrees 35
minutes 50 seconds East 317.88 feet, thence South 70 degrees 52 minutes 05
seconds West 475.86 feet to the point of beginning. Said parcel being in the SW
1/4 of the NE 1/4 of Section 31, Township 2 North, Range 24 East, and containing
4.91 acres, more or less.

--------------------------------------------------------------------------------

THIS INSTRUMENT PREPARED BY AND AFTER
RECORDATION SHOULD BE RETURNED TO:
William B. Hairston III
ENGEL HAIRSTON & JOHANSON, P.C.
4th Floor, 109 North 20th Street
Birmingham, Alabama 35203
(205) 328-4600

                                       12<PAGE>
                                                                    Exhibit 10.3

                       FOURTH AMENDMENT TO LOAN AGREEMENT

     This Fourth Amendment to Loan Agreement is made as of June 18, 2003, by and
between DIVERSICARE ASSISTED LIVING SERVICES NC I, LLC, a Delaware limited
liability company (together with its successors and assigns, the "Borrower"),
and GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation (together
with its successors and assigns, the "Lender").

                                   RECITALS:

     A.   Borrower and the Lender entered that certain Loan Agreement dated June
4, 1999, as amended by that certain First Amendment to Loan Agreement dated as
of July 1, 2002, as amended by that certain Second Amendment to Loan Agreement
dated as of October __, 2002, and as further amended by that certain Third
Amendment to Loan Agreement dated as of January 1, 2003 (the "Agreement").
Unless otherwise defined in this Fourth Amendment, capitalized terms shall have
the meaning given to them in the Agreement.

     B.   The Borrower and the Lender desire to amend the Agreement and have
agreed to execute this Fourth Amendment to evidence such modification.

                                   AGREEMENT

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

     Paragraph 1.1, "Maturity Date" is hereby amended by changing the date to
"July 1, 2003".

     Except as expressly amended hereby, the Agreement shall remain in full
force and effect in accordance with its terms.

                                       1
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     IN WITNESS WHEREOF, the Borrower and the Lender have caused this Fourth
Amendment to be properly executed by their respective duly authorized officers
as of the date first above written.

                                DIVERSICARE ASSISTED LIVING
                                SERVICES NC I, LLC, a Delaware limited
                                liability company

                                By: Diversicare Assisted Living Services NC, LLC
                                Its: Sole Member

                                    By: /s/ William R. Council, III
                                       ----------------------------
                                    Name: William R. Council, III
                                    Title: Chief Executive Officer

                                GMAC COMMERCIAL MORTGAGE
                                CORPORATION

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

                                       2

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