Document:

EX-10.61

Exhibit 10.61

FIRST AMENDMENT TO LOAN AGREEMENT

     This First Amendment to Loan Agreement (this “First Amendment”) is effective as of the 23rd day of
December, 2008, by and between DIVERSICARE AFTON OAKS, LLC, a Delaware limited liability company
(the “Afton Oaks Borrower”), DIVERSICARE BRIARCLIFF, LLC, a Delaware limited liability company (the
“Briarcliff Borrower”), DIVERSICARE CHISOLM, LLC, a Delaware limited liability company (the
“Chisolm Borrower”), DIVERSICARE HARTFORD, LLC, a Delaware limited liability company (the “Hartford
Borrower”), DIVERSICARE HILLCREST, LLC, a Delaware limited liability company (the “Hillcrest
Borrower”), DIVERSICARE PINEDALE, LLC, a Delaware limited liability company (the “Newport
Borrower”) and DIVERSICARE WINDSOR HOUSE, LLC, a Delaware limited liability company (the “Windsor
Borrower”; the Afton Oaks Borrower, the Briarcliff Borrower, the Chisolm Borrower, the Hartford
Borrower, the Hillcrest Borrower, the Newport Borrower and the Windsor Borrower, together with
their successors and/or assigns, may be referred to collectively herein as the “Borrowers” or
individually as a “Borrower”), and CAPMARK FINANCE INC., a California corporation (together with
its successors and assigns, the “Lender”).

Recitals

     A. The Borrowers and the Lender executed that certain Loan Agreement dated August 7, 2006 (the
“Loan Agreement”; capitalized terms not further defined herein shall have the meaning assigned to
them in the Loan Agreement) governing a loan in the original principal amount of $30,625,000.00
(the “Loan”).

     B. The Borrowers have requested that the Lender modify certain provisions of the Loan Agreement.
The Lender has agreed to such requests on certain conditions, one of which is the execution of this
Amendment by the Borrowers.

Agreement

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

     1. Section 4.15 of the Loan Agreement is hereby deleted in its entirety and replaced with the
following:

     “4.15 Occupancy. Beginning with the quarter ending December 31, 2008, maintain or
cause to be maintained at all times, a daily average annual combined occupancy for the
Facilities, as tested quarterly (on the basis of a calendar year), of eighty percent (80%)
or more (based on the number of available beds at the Facilities). Notwithstanding anything
in the preceding sentence to the contrary, if the daily average annual combined occupancy
for the Facilities, as tested quarterly (on the basis of a calendar year), drops below
eighty-percent (80%) or more (based on the number of available beds at the Facilities),
commencing with the quarter ending December 31, 2008, the Lender shall not declare an Event
of Default so long as the daily average annual combined occupancy for the Facilities, as
tested quarterly (on the basis of a calendar year), is seventy-five percent (75%) or more
(based on the number of available beds at the Facilities) and the Combined Debt Service
Coverage for the Facilities, after deduction

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     of Assumed Management Fees and Actual Cost of Professional and General Liability and before
the provision (benefit) for self-insured professional and general liability to the extent
deducted in determining net income, based on a rolling twelve (12) month period, tested
quarterly, is not less than 1.4 to 1.0. For purposes of this Section 4.15, the minimum
number of available beds at the Facilities must remain at or in excess of the number of beds
set forth on Schedule 4.15 herein.”

     2. Borrowers shall be prohibited from altering the number of licensed beds as set forth in Article
I of the Loan Agreement or available beds as set forth on Schedule 4.15 herein without the prior
written consent of Lender in its sole discretion.

     Except as expressly amended hereby, all other terms and conditions of the Loan Agreement shall
remain unchanged and shall continue in full force and effect.

     The Borrower represents that (a) no Event of Default has occurred that is continuing on the
date hereof; and (b) the representations and warranties included in Article III of the Loan
Agreement are as true and correct on the date hereof as when originally made, except as such
representation or warranty expressly relates to an earlier date.

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

	 	 	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE AFTON OAKS, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE BRIARCLIFF, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE CHISOLM, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 

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	 	 	 	 	DIVERSICARE HARTFORD, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE HILLCREST, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE PINEDALE, LLC, a	 	 
	 	 	 	 	Delaware limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIVERSICARE WINDSOR HOUSE,	 	 
	 	 	 	 	LLC, a Delaware
limited liability company	 	 
	/s/ Jacqueline Reed
 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Diversicare Leasing Corp., a	 	 
	Jacqueline Reed	 	 	 	 	 	Tennessee corporation, its sole	 	 
	[Print Name]	 	 	 	 	 	member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ L. Glynn Riddle	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	L. Glynn Riddle,	 	 
	 

	 	 	 	 	 	 	 	its Chief Financial Officer	 	 

4

 

	 	 	 	 	 
	 	LENDER:

CAPMARK FINANCE INC., a California 

corporation

 	 
	 	/s/ Laura Y. McDonald
 	 
	 	By:  	Laura Y. McDonald 	 
	 	Its:  	Senior Vice Presiden 	 

5EX-10.62

Exhibit 10.62

AMENDMENT NO. 4 TO THE

ADVOCAT INC.

1994 INCENTIVE AND NONQUALIFIED STOCK OPTION PLAN

FOR KEY PERSONNEL

     Amendment No. 4 to the Advocat Inc. (the “Corporation”) 1994 Incentive and Nonqualified Stock
Option Plan for Key Personnel authorizes the Committee to permit an Option holder to pay the Option
price by using the “net exercise” method. Capitalized terms used in the Amendment No. 4, if not
otherwise defined herein, shall have the respective meanings attributed to such terms in the Plan.

     The 1994 Incentive and Nonqualified Stock Option Plan for Key Personnel is hereby amended by
striking Subparagraph 7(e) in its entirety and inserting the following in lieu thereof:

     (e) Payment and Withholding.

     (i) Payment for all shares purchased pursuant to exercise of an Option will be
made in cash, by delivery of unrestricted shares of Common Stock at Fair Market
Value on the date of exercise, or a combination thereof. The payment will be made
at the time the Option or any part thereof is exercised, and no shares will be
issued until full payment therefor has been made. Payment in currency or by check,
bank draft, cashier’s check or postal money order will be considered payment in
cash.

     (ii) Notwithstanding the subparagraph 7(e)(i), the Committee may in its
discretion permit the Option price to be paid by the “net exercise” of such Option
In such case, the Company will not require a cash payment of the Option price, but
will reduce the number of shares of Common Stock issued upon the exercise of such
Option by the largest number of whole shares of Common Stock that have a Fair Market
Value which does not exceed the aggregate Option price with respect to the portion
of such Option that is being exercised. With respect to any remaining balance of
the aggregate Option price, the Company shall accept a cash payment. Upon the “net
exercise” of an Option (A) shares used to pay the Option price, (B) shares actually
delivered to the Option holder as a result of such exercise, and (C) shares withheld
for purposes of tax withholding, will no longer be outstanding under such Option
(and will therefore no longer be exercisable by the holder).

     (iii) In addition to the Option price, the Corporation will have the right, if
applicable, to require the holder of an Option to remit to the Corporation an amount
sufficient to satisfy any federal, state or local withholding tax liability prior to
the delivery of any certificate or certificates for shares issuable upon exercise of
the Option.

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