Document:

Prepared by R.R. Donnelley Financial -- Stock Purchase Agreement

 EXHIBIT 10.3 
  
 STOCK PURCHASE AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made as of the
30th day of January, 2002 by and among LTC Properties, Inc., a Maryland corporation (“Seller”) and CLC Healthcare, Inc., a Nevada corporation (“Buyer”). 
  
 WHEREAS, Seller owns all of the outstanding shares (the “Shares”) of common stock, par value $.01 per share (the “Common Stock”), of LTC-Fort Tucum,
Inc., a Delaware corporation (the “Corporation”), represented by Stock Certificate number 1 (the “Shares”) and constituting one hundred percent (100%) of the outstanding shares of capital stock issued by the Corporation.

  
 WHEREAS, Seller, on behalf of Buyer, provided services to Buyer for the acquisition of the properties known as
Pecos Valley Care Center, located at 519 N. 10th Street, Fort Sumner, New Mexico and Van Ark Care Center, located at 1005 S. Monroe, Tucumcari, New Mexico. 
  
 WHEREAS, Seller desires to sell, transfer and convey the Shares of the Corporation to Buyer and Buyer desires to acquire and purchase the Shares from Seller on the terms and conditions set forth
herein. 
  
 NOW, THEREFORE, in consideration of the assumption of the Loan, Acquisition Services and the mutual
promises, covenants and representations hereinafter contained, and subject to the conditions hereinafter set forth, it is agreed as follows: 
  
 1.  Sale and Transfer of Shares.    Subject to the terms and conditions set forth in this Agreement, Seller hereby transfers and conveys the Shares to Buyer, and
Buyer hereby acquires the Shares from Seller for total consideration of One Thousand and NO/100 Dollars ($1,000.00). 
  
 2.  Release of Interest.    Seller hereby releases and relinquishes any and all right, title and interest which Seller now has or may ever have had in the Shares. 
  
 3.  Representations of Seller.    Seller represents and warrants that: 

 
 (a)  Seller is the owner, beneficially and of record, of all of the Shares, free and clear of all
liens, encumbrances, security agreements, equities, options, claims, charges, and restrictions, other than the restrictions set forth on the Shares; 
  
 (b)  the Shares are validly issued in the name of Seller, and are fully paid and non-assessable; 
  
 (c)  Seller has full power and authority to transfer the Shares to Buyer; and 
  
 (d)  this Agreement, when executed and delivered by Seller, will constitute a valid and legally binding
obligation of Seller, enforceable in accordance with its terms. 
 

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 4.  Representations of
Buyer.    Buyer represents and warrants that: 
  
 (a)  Buyer is
experienced in evaluating companies such as the Corporation and has such knowledge and experience in financial and business matters that Buyer is capable of evaluating the merits and risks of the prospective investment in the Corporation, and has
the ability to bear the economic risks of the investment; 
  
 (b)  Buyer understands that
the Shares have not been registered under the Securities Act of 1933 (the “Act”) and must be held indefinitely unless the Shares are registered under the Act or an exemption from registration is available, including the possible exemption
available pursuant to Rule 144; 
  
 (c)  Buyer does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect to any of the Shares; 
  
 (d)  Buyer is acquiring the Shares for investment for its own account and not with a view to, or for resale in connection with, any distribution of the Shares within the meaning of the Act;
and 
  
 (e)  this Agreement, when executed and delivered by Buyer, will constitute a valid
and legally binding obligation of Buyer, enforceable in accordance with its terms. 
  
 5.  Other Documents.    The transactions contemplated hereby shall be consummated upon the simultaneous delivery: 
  
 (a)  by Seller to the designated attorney-in-fact for the Corporation of the Stock Certificate for the Shares for cancellation; 

 
 (b)  by the Corporation to Buyer of a Stock Certificate for the Shares in the amount of Common Stock
as described in the recitals above (which deliveries Seller shall cause to be made); 
  
 (c)  by Seller to Buyer of a stock power in the form attached hereto as Exhibit “A”; 
  
 (d)  by Buyer to Seller of the Purchase Price. 
  
 6.  Indemnification. 
  
 (a)  Seller shall indemnify, save
and hold harmless Buyer from and against any and all costs, losses, taxes, liabilities, obligations, damages, lawsuits, deficiencies, claims, demands, and expenses (whether or not arising out of third-party claims) (collectively,
“Damages”) for such Damages in connection with the Corporation, including, but not limited to, the assets, facilities, properties, and management or operation thereof held by the Corporation, attributable to the period prior to the
date of this Agreement; and for such Damages incurred in 
 

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connection with, arising out of, resulting from or incident to any breach of any representation, warranty, covenant or agreement made in or pursuant to this Agreement. 
  
 (b) Buyer shall indemnify, save and hold harmless Seller from and against any and all Damages incurred for Damages in
connection with the Corporation, including, but not limited to, the assets, facilities, properties, and management or operation thereof held by the Corporation, attributable to the period after the date of this Agreement; and, for such Damages in
connection with, arising out of, resulting from or incident to any breach of any representation, warranty, covenant or agreement made in or pursuant to this Agreement. 
  
 (c) All of the representations and warranties of the parties contained in this Agreement shall survive the date if execution hereof and continue in full
force and effect forever thereafter (subject to any applicable statutes of limitations). 
  
 7.  Miscellaneous. 
  
 (a)  Governing
Law.    The laws of the State of California applicable to contracts made in that State, without giving effect to its conflict of law rules, shall govern the validity, construction, performance and effect of this Agreement.

  
 (b)  Consent to Jurisdiction.    Each party hereto consents
to the jurisdiction of the courts of the State of California in the event any action is brought for declaratory relief or enforcement of any of the terms and provisions of this Agreement. 
  
 (c)  Attorneys’ Fees.    Unless otherwise specifically provided for herein, each party hereto shall bear its own
attorneys’ fees incurred in the negotiation and preparation of this Agreement and any related documents. In the event that any action or proceeding is instituted to interpret or enforce the terms and provisions of this Agreement, however, the
prevailing party shall be entitled to its costs and attorneys’ fees, in addition to any other relief it may obtain or be entitled to. 
  
 (d)  Interpretation.    In the interpretation of this Agreement, the singular may be read as the plural, and vice versa, the neuter gender as the
masculine or feminine, and viceversa, and the future tense as the past or present, and viceversa, all interchangeably as the context may require in order to fully effectuate the intent of the parties and the transactions
contemplated herein. Syntax shall yield to the substance of the terms and provisions hereof. Paragraph headings are for convenience of reference only and shall not be used in the interpretation of the Agreement. Unless the context specifically
states to the contrary, all examples itemized or listed herein are for illustrative purposes only. 
  
 (e)  Entire Agreement.    This Agreement sets forth the entire understanding of the parties, and supersedes all previous agreements, negotiations, memoranda, and understandings, whether written or
oral. In the event of any conflict between any exhibits or schedules attached hereto, this Agreement shall control. 
  
 (f)  Modifications.    This Agreement shall not be modified, amended or changed in any manner unless in writing executed by the parties hereto. 
 

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 (g)  Waivers.    No waiver
of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, and no waiver shall be binding unless evidenced by an
instrument in writing and executed by the party making the waiver. 
  
 (h)  Invalidity.    If any term, provision, covenant or condition of this Agreement, or any application thereof, should be held by a court of competent jurisdiction to be invalid, void or
unenforceable, that provision shall be deemed severable and all provisions, covenants, and conditions of this Agreement, and all applications thereof not held invalid, void or unenforceable, shall continue in full force and effect and shall in no
way be affected, impaired or invalidated thereby. 
  
 (i)  Binding
Effect.    This Agreement shall be binding on and inure to the benefit of the heirs, personal representatives, successors and permitted assigns of the parties hereto. 
  
 (j)  Counterparts.    This Agreement may be executed in multiple counterparts, which together shall constitute one and
the same document. 
  
 (k)  Negotiated Agreement.    This is a
negotiated Agreement. All parties have participated in its preparation. In the event of any dispute regarding its interpretation, it shall not be construed for or against any party based upon the grounds that the Agreement was prepared by any one of
the parties. 
  
 (l)  Arbitration.    Any controversy or claim
arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration in the State of California in accordance with the Rules of the American Arbitration Association, and judgment upon the award may be entered in any
court having jurisdiction thereof pursuant to the provisions of the State of California. 
  
 (m)  Time of Essence:    Time is of the essence of this Agreement and all of its provisions. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement effective the day and year above written. 
  
 “SELLER”                                  
                                        
                        “BUYER” 
  
 
	 LTC PROPERTIES, INC.,
 a Maryland corporation
 	 	  	 	 CLC HEALTHCARE, INC.
 a Nevada corporation 
 
	 
	 By:
 	 	 
	 	  	 	 By:
 	 	 

	  	 	 Wendy Simpson
 Chief Financial
Officer
 	 	  	 	  	 	 Christopher Ishikawa
 President
 

 
 

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 EXHIBIT “A” 
  
 STOCK POWER 
  
 FOR VALUE RECEIVED, the undersigned hereby
assigns and transfers unto CLC Healthcare, Inc., all of its right, title and interest in and to One Thousand (1,000) shares of common stock, par value $.01 per share (the “Shares”), of LTC-Fort Tucum, Inc., a Delaware corporation (the
“Corporation”) subject to the terms and conditions of the Promissory Note; Security Agreement and any applicable security instrument, and do hereby irrevocably constitute and appoint any individual designated by the President of the
Corporation as its attorney to transfer the Shares on the books of the Corporation, with full power of substitution in the premises. 
  
 DATED as of the 30th day of January, 2002. 
  
 
	 LTC PROPERTIES, INC.
 a Maryland
corporation
 
	 
	 By:
 	 	 

	  	 	 Wendy Simpson
 Chief Financial
Officer
 

 

	

 

 5Prepared by R.R. Donnelley Financial -- Promissory Note

 EXHIBIT 10.1 
  
 PROMISSORY NOTE 
  
 
	 $500,000.00
 	 	 DATE:    January 30, 2002
 

 
  
 Oxnard, California 
  

THIS NOTE (THIS “NOTE”), IS MADE BY LTC-FORT TUCUM, INC., A DELAWARE CORPORATION, AS MAKER (“MAKER”), IN FAVOR OF LTC PROPERTIES, INC., A
MARYLAND CORPORATION, AS PAYEE (“PAYEE”) IN THE AMOUNT OF FIVE HUNDRED THOUSAND DOLLARS ($500,000.00). 
  
 At Maturity Date, as hereinafter defined, for value received, Maker hereby promises to pay to the order of Payee, at Payee’s principal place of business in Oxnard, California, or such other place as Payee may from time to time
designate, the principal sum of Five Hundred Thousand Dollars ($500,000.00). The Note is to be non-interest bearing until January 29, 2003 and thereafter until the Maturity Date, as defined below, at 8% interest payable quarterly in arrears. Subject
to Maker’s Extended Maturity Date as defined below, all principal shall be due on or before January 29, 2005 (the “Maturity Date”). Principal due hereunder shall be payable in lawful money of the United States. 

 
 Subject to the limitations described herein, Maker desires to execute this Note in satisfaction of its obligations to Payee for
acquisition services provided of the properties known as Pecos Valley Care Center, located at 519 N. 10th Street, Fort Sumner, New Mexico and Van Ark Care Center, located at 1005 S. Monroe, Tucumcari, New Mexico. 
  
 1.  Payments on Maturity Date.    Unless extended as set forth in this Section, assuming no
acceleration by Payee and no prepayment in full of the Loan by Maker, on the Maturity Date, Maker shall pay to Payee the entire outstanding principal owing to Payee by Maker under this Note. Upon written notice to Payee prior to the Maturity Date,
Maker shall have the right to extend the Note for a period of one year from the Date hereof at the rate of 9% compounded annually, with all principal and accrued Compound Interest due on or before January 29, 2006, (the “Extended Maturity
Date”). 
  
 2.  Prepayments.    Maker shall have the right to prepay all or
any part of the principal and accrued interest balance of this Note any time without premium, penalty, or charge of any kind whatsoever; provided, however, there shall be no discount of any kind for any prepayment. 
  
 3.  Security Documents.    This Note is a full recourse obligation of the Maker and is secured by all
of the assets of Maker, whether heretofore or hereafter acquired, and a security agreement and/or other security instruments given by Maker in favor of Payee, (collectively, the “Security Documents”). Reference is made to the Security
Documents for a description of the collateral provided for therein and the rights of Payee with respect to such collateral. 
  
 4.  Restrictive Covenants.    Maker hereby covenants and agrees with Payee that, for so long as the obligations of Maker under this Note remain outstanding under the Note, Maker will comply with
all of the following: 
  
 (a)  Maker will not, and will not permit any subsidiary of Maker
to, create, assume, incur or suffer to exist any lien or encumbrance of any kind, upon all or any portion of the Collateral (as defined in the Security Documents), except as permitted by Payee. 
  

(b)  Maker will not, and will not permit any subsidiary to pay a dividend, provide any loan guaranty, lend money or borrow any additional
sums beyond this Note. 
  
 (c)  Maker will not, and will not permit any subsidiary to (i)
lease, assign or sell all or substantially all of its property or business to any other Person (as hereinafter defined), (ii) merge or consolidate with or into any other Person, (iii) purchase or lease or otherwise acquire all or substantially all
of the assets of any 
 

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 other Person, (iv) sell, transfer, pledge or otherwise dispose of capital stock of Maker or any of its subsidiaries, (v) liquidate, suspend or
dissolve its business operations, (vi) change its name, identity or corporate, partnership or other structure, or (vii) change the current principal place of business or chief executive office, in each case without the prior written consent of
Payee. 
  
 5.  Acknowledgement and Restrictive Covenant of CLC Healthcare, Inc., parent of Maker
(“CLCH”).    CLCH hereby acknowledges that it has heretofore pledged as collateral all of the outstanding stock of Maker pursuant to that certain Second Amended and Restated Promissory Note and Security Agreement
dated June 8, 2001, which obligation remains in effect, and hereby further covenants and agrees with Payee that, for so long as the obligations of Maker under this Note remain outstanding, CLCH will not pledge the stock of Maker, or otherwise
encumber the stock of Maker, in any manner for any reason. 
  
 6.  Change of
Control.    Notwithstanding anything to the contrary contained herein, upon a Change of Control (as hereinafter defined) Payee may, in its sole discretion, declare the entire balance of principal and interest hereon
immediately due and payable, together with all applicable charges and payments due hereunder, all costs of collection, including reasonable attorneys’ fees and all other costs and expenses incurred, and shall have all remedies available under
the Security Documents, at law or in equity. For purposes of this Note, a “Change of Control” shall mean and include (i) the sale by Maker, or CLCH (each hereinafter referred to as “Party”) and/or any subsidiary of either Party
of all or substantially all of the assets of either Party and its subsidiaries taken as a whole, (ii) any Acquisition by any person or any persons acting together which would constitute a “group” for purposes of Section 13(d) of the
Exchange Act (a “Group”) of 30% or more of the total voting power of all classes of capital stock of either Party entitled to vote generally in the election of the Board of Directors of either Party, (iii) any Acquisition by any person or
Group of the power to elect, appoint or cause the election or appointment of at least a majority of the members of the Board of Directors of either party, through beneficial ownership of the capital stock or otherwise, or, (iv) a majority of the
members of the Boards of Directors of either Party cease to be Continuing Directors (as hereinafter defined). As used herein, “Continuing Directors” means, as of any date of determination, any member of the Board of Directors of either
party, who (i) was a member of the Boards of Directors of either Party on the date of this Note, or (ii) was nominated for election or elected to such Board with the approval of a majority of the Continuing Directors who were members of such Boards
at the time of such nomination or election. For the purposes of this definition, “Acquisition” of the power or properties and assets stated in the preceding sentence means the earlier of (a) the actual possession thereof and (b) the
consummation of any transaction or series of related transactions which, with the passage of time, will give such Person or Persons that actual possession thereof. As used herein, “Person” shall mean an individual, corporation,
trust, partnership, joint venture, unincorporated organization, government agency or any agency or political subdivision thereof, or other entity. 
  
 7.  Late Payment Charge; No Waiver.    MAKER ACKNOWLEDGES THAT LATE PAYMENT TO PAYEE OF ANY SUMS DUE HEREUNDER WILL CAUSE PAYEE TO INCUR COSTS NOT CONTEMPLATED
HEREUNDER, THE EXACT AMOUNT OF WHICH WILL BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO ASCERTAIN. SUCH COSTS INCLUDE, BUT ARE NOT LIMITED TO, PROCESSING AND ACCOUNTING CHARGES. ACCORDINGLY, IF ANY INSTALLMENT IS NOT RECEIVED BY PAYEE WHEN DUE, OR IF
ANY REMAINING PRINCIPAL AND ACCRUED BUT UNPAID INTEREST OWING UNDER THIS NOTE IS NOT PAID IN FULL ON THE MATURITY DATE, MAKER SHALL THEN PAY TO PAYEE AN ADDITIONAL SUM OF FIVE PERCENT (5%) OF THE OVERDUE AMOUNT AS A LATE CHARGE. THE PARTIES HEREBY
AGREE THAT THE LATE CHARGE REPRESENTS A FAIR AND REASONABLE ESTIMATE OF THE COSTS PAYEE WILL INCUR BY REASON OF LATE PAYMENT. THIS PROVISION SHALL NOT, HOWEVER, BE CONSTRUED AS EXTENDING THE TIME FOR PAYMENT OF ANY AMOUNT HEREUNDER, AND ACCEPTANCE
OF SUCH LATE CHARGE BY PAYEE SHALL IN NO EVENT CONSTITUTE A WAIVER OF MAKER’S DEFAULT WITH RESPECT TO SUCH OVERDUE AMOUNT NOR PREVENT PAYEE FROM EXERCISING ANY OF ITS OTHER RIGHTS AND REMEDIES WITH RESPECT TO SUCH DEFAULT. 

 
 INITIAL:                      
                                  Maker 
 

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 8.  Default.    The occurrence of any of the
following shall constitute an event of default (“Event of Default”) under this Note: 
  
 (a)  failure to make any payment of principal, interest, or any other sums due hereunder within five (5) business days of the date due; 
  
 (b)  the occurrence of any breach or default of any other obligation of Maker, or any of their respective subsidiaries, monetary or otherwise,
hereunder or otherwise, which breach or default (except as provided below) shall continue for more than ten (10) calendar days after Maker has received written notice thereof from Payee; 
  
 (c)  notwithstanding anything to the contrary contained in this Section 8, immediately upon the breach or default of any provision of Sections 4,
5 and 6 hereof; or 
  
 (d)  a breach or default under the Security Documents. 

 
 9.  Acceleration Rights; Remedies.    Upon the occurrence of an Event of Default or Change
of Control hereunder, Payee may, in its sole discretion, declare the entire balance of principal and interest hereon immediately due and payable, together with all applicable charges and payments due hereunder, costs of collection, including
reasonable attorneys’ fees and all other costs and expenses incurred, and shall have any and all remedies available under the Security Documents, at law or in equity. 
  
 10.  Attorneys’ Fees and Costs.    In the event it becomes necessary for Payee to utilize legal counsel for the enforcement of
this Note or any of its terms, if Payee is successful in such enforcement by legal proceedings or otherwise, Payee shall be reimbursed immediately by Maker for all reasonable attorneys’ fees and other costs and expenses. 

 
 11.  Waivers.    Maker of this Note hereby waives diligence, demand, presentment for
payment, exhibit of this Note, notice of non-payment or dishonor, protest and notice of protest, notice of demand, notice of election of any right of holder hereof, any and all exemption rights against this indebtedness, and expressly agrees that,
at Payee’s election, the time for performance of any obligation under this note may be extended from time to time, without notice and that no such extension, renewal, or partial release shall release Maker from its obligation of payment of this
Note or any installment hereof, and consents to offset of any sums owed to Maker by the holder hereof at any time. 
  
 12.  Assignment/Transfer by Payee.    Payee, in Payee’s sole and absolute discretion, and without notice to Maker, shall have the absolute right to sell, assign, gift, transfer, convey,
encumber or otherwise dispose of all or a portion of the holder’s rights in this Note or any other agreement related thereto. Maker may not assign, gift, transfer, convey, encumber or otherwise dispose of all or a portion of its rights, nor
delegate its duties or obligations under this Note or any other agreement related thereto. 
  
 13.  Governing Law.    This Note shall in all respects be interpreted, enforced, and governed by and under the internal law of the State of California without resort to choice of law principles.

  
 14.  Severability.    Every provision hereof is intended to be several. If
any provision of this Note is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect the other provisions hereof, which shall remain binding and
enforceable. 
  
 15.  Compliance With Usury Laws.    It is the intention of the
parties hereto to conform strictly to applicable usury laws regarding the use, forbearance or detention of the indebtedness evidenced by this Note, whether such laws are not or hereafter in effect, including the laws of the Untied States of America
or any other jurisdiction whose laws are applicable, and including subsequent revisions to or judicial interpretations of those laws, in each case to the extent they are applicable to this Note (the “Applicable Usury Laws”); provided,
however, if such laws shall hereafter permit higher rates of interest, then the Applicable Usury Laws shall be the laws allowing the higher rate of interest. Accordingly, the following shall apply: 
 

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 (a)  If any acceleration of the Maturity Date of this
Note or any payment by maker or any other person or entity results in the amount of interest contracted for, charged, taken, reserved, received by or paid by Maker or such other person or entity on the principal amount outstanding, from time to
time, on the Note being deemed to have been in excess of the Maximum Amount (as hereinafter defined) or if any transaction contemplated hereby would otherwise be usurious under any Applicable Usury Laws, then, in that event, notwithstanding anything
to the contrary in this Note, it is agreed as follows: (i) the provisions of this Section shall govern and control; (ii) the aggregate of all interest under Applicable Usury Laws that is contracted for, charged, taken, reserved or received under
this Note, or under any of the other aforesaid agreements or instruments or otherwise shall under no circumstances exceed the Maximum Amount, and any excess shall either be refunded to Maker or applied in reduction of principal, if permitted by
California law, in the sole discretion of Payee; (iii) neither Maker nor any other person or entity shall be obligated to apply the amount of such interest to the extent it is in excess of the Maximum Amount; (iv) any interest contracted for,
charge, reserved, taken or received in excess of the Maximum Amount shall be deemed an accidental or bona fide error and canceled automatically to the extent of such excess; and (v) the effective rate of interest on the Loan shall be ipso facto
reduced to the Highest Lawful Rate (as hereinafter defined), and the provision of this Note shall be deemed reformed, without the necessity of the execution of any new document, so as to comply with all Applicable Usury Laws. All sums paid, or
agreed to be paid, to Payee for the use, forbearance, or the detention of the indebtedness of Maker to payee evidenced by this Note shall, to the fullest extent permitted by the Applicable Usury Laws, be amortized, pro-rated, allocated and spread
throughout the full term of the indebtedness evidenced by this Note so that the actual rate of interest does not exceed the Highest Lawful Rate in effect at any particular time during the full term thereof. As used herein, the term “Maximum
Amount” means the maximum non-usurious amount of interest which may be lawfully contracted for, charged, reserved, taken or received by Payee in connection with the indebtedness evidenced by this Note under all applicable Usury Laws.

  
 (b)  If at any time interest on the Loan, together with any fees and additional amounts
payable hereunder or under any other agreements or instruments that are deemed to constitute interest under Applicable Usury Laws (the “Additional Interest”), exceeds the Highest Lawful Rate, then the amount of interest to accrue pursuant
to this Note shall be limited, notwithstanding anything to the contrary in this Note, or any other agreement or instrument, to the amount of interest that would accrue at the Highest Lawful Rate; provided, however, that to the fullest extent
permitted by Applicable Usury Laws, any subsequent reductions in the interest rate shall not reduce the interest to accrue pursuant to this Note below the Highest Lawful Rate until the aggregate amount of interest actually accrued pursuant to this
Note, together with all Additional Interest, equals the amount of Interest which would have accrued if the Highest Lawful Rate had at all times been in effect and such Additional Interest, if any, had been paid in full. 
  
 For purposes of this Note, the term “Highest Lawful Rate” means the maximum rate of interest and other charges (if any such
maximum exists) for the forbearance of the payment of monies, if any that may be charged, contracted for, reserved, taken or received under all Applicable Usury Laws on the principal balance of this Note from time to time outstanding. 

 
 16.  Notices.    Any notice or other communication required or permitted to be given under
this Note shall be in writing and sent by United States mail, registered or certified mail, postage prepaid, return receipt requested, and addressed as follows: 
  
 If to Maker:         LTC-Fort Tucum, Inc. 
 300 Esplanade Drive, Suite 1865 
 Oxnard,
California 93030 
 Attention: Executive Vice President 
  
 with a copy to:     LTC-Fort Tucum, Inc. 
 300 Esplanade Drive, Suite 1865 
 Oxnard, California 93030 
 Attention: Legal Department 
 

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 If to
Payee:          LTC Properties, Inc. 
 300 Esplanade Drive, Suite 1860 

Oxnard, California 93030 
 Attention:
Chief Financial Officer 
  
 with a copy to:     LTC Properties, Inc.

 300 Esplanade Drive, Suite 1860 
 Oxnard, California 93030 
 Attention: Legal Department 
  
 or such other address as either party may from time to time specify in writing to the other in the manner aforesaid. If personally delivered, such notices or other communications shall be deemed
delivered upon delivery. If sent by United States mail, registered or certified mail, postage prepaid, return receipt requested, such notices or other communications shall be deemed delivered upon delivery or refusal to accept delivery as indicated
on the return receipt. 
  
 [SIGNATURE PAGE FOLLOWS] 
 

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 IN WITNESS WHEREOF, the Maker has caused this Note to be executed as of
the date first above written. 
  
 MAKER: 
  
 
	 LTC-FORT TUCUM, INC.,
 a Delaware corporation 
 
	 
	 By:
 	 	 

	  	 	 Christopher Ishikawa
 Executive
Vice President
 

 
  
  
  
  
 ACKNOWLEDGED AND AGREED: 
  
 
	 CLC HEALTHCARE, INC.
 a Nevada
corporation
 
	 
	 By:
 	 	 

	  	 	 Wendy Simpson
 Executive Vice
President
 and Chief Financial Officer
 

 
 

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