Document:

Unassociated Document

     

     

    

      
        

      

      

       

      __________________________________________

       

      SECOND
AMENDMENT TO

      SECOND
AMENDED AND RESTATED

       

      MASTER
LEASE AGREEMENT

       

      __________________________________________

       

      

       

      Among

       

      OMEGA
HEALTHCARE INVESTORS, INC.

       

      

       

      THE
LESSOR ENTITIES IDENTIFIED ON THE SIGNATURE PAGE HEREOF

       

      THE
LESSEE ENTITIES IDENTIFIED ON THE SIGNATURE PAGE HEREOF

       

      

       

      AND

       

      

       

      THE
GUARANTOR ENTITIES IDENTIFIED ON THE SIGNATURE PAGE HEREOF

       

      Dated As
Of

       

      

       

      February 26,
2009

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECOND
AMENDMENT TO

      SECOND
AMENDED AND RESTATED

      MASTER
LEASE AGREEMENT

      

      THIS
SECOND AMENDMENT TO SECOND AMENDED AND RESTATED MASTER LEASE AGREEMENT (this
“Master
Lease”), is made and entered into on this 26th day of
February, 2009 (the “Effective Date”) by
and among the lessor entities identified on the signature page hereof
(collectively, the “Lessor,” and where
the context requires, each, a “Lessor”), the lessee
entities listed on the signature page hereof (collectively, jointly and
severally, the “Lessee,” and where
the context requires, each, a “Lessee”), OMEGA
HEALTHCARE INVESTORS, INC., a Maryland corporation (“Omega”), and the
guarantor entities identified on the signature page hereof (each a “Guarantor” and
collectively, the “Guarantors”).

       

      RECITALS

       

      The
circumstances underlying the execution of this Master Lease are as
follows:

       

      A. Lessor,
as landlord, and Lessee, as lessee, are parties to that certain Second Amended
and Restated Master Lease dated as of February 1, 2008 (the “Second Amended
Lease”), as amended by First Amendment to Second Amended and Restated Master
Lease dated August 26, 2008 (the “First Amendment” and
together with the Second Amended Lease, the “Existing Lease”),
pursuant to which Lessee leases forty (40) facilities from
Lessor.  All terms used in this Amendment and not defined herein shall
have the meanings assigned to them in the Existing Lease.

       

      B. Lessor
and Lessee desire to amend the Existing Master Lease to modify the terms agreed
upon in the First Amendment with respect to certain capital improvements to the
Facilities.

       

      NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

       

      1. Definitions.

       

      (a)           Any
capitalized term used but not defined in this Amendment will have the meaning
assigned to such term in the Existing Lease.

      

      (b)           In
addition to the other definitions contained herein, when used in this Amendment
the following terms shall have the following meanings and to the extent that any
of the following definitions are also contained in the First Amendment, the
definition set forth below shall be deemed to amend and supersede the same in
its entirety:

       

      Accrued Financing
Costs: is defined in Section 6 of the First Amendment, as supplemented by
Section 2 of this Amendment.

      

      Additional Project
Rent: means, with respect to each Approved Project or Structural Project,
an amount equal to (A) the Funded Amount for such Approved Project or Structural
Project multiplied by
(B) ten percent (10.00%).

      

      Additional Rent Commencement
Date: means, (A) for each Approved Project, the earlier to occur of (i)
the Substantial Completion Date or (ii) the first day of the fifteenth (15th) month
following the Approved Project Start Date for such Approved Project and (B) for
each Structural Project, the earlier to occur of (i) the Substantial Completion
Date, (ii) the Target Completion Date, (iii) an Event of Default, (iv) the date
that Lessor and Lessee agree to stop work on a Structural Project, or (v) a
default by Lessee in its obligations under the Project Management Agreement
which is not cured within any cure period provided for therein.

      

      Approved Structural Project
Documents: has the meaning set forth in Section 2(b).

      

      Funded Amount: means,
with respect to each Approved Project or Structural Project, the aggregate funds
expended by Lessor and all Accrued Financing Costs on such Approved Project or
Structural Project, and with respect to all Approved Projects and Structural
Projects, the aggregate funds expended by Lessor and all Accrued Financing Costs
on all Approved Projects and Structural Projects.

      

      Maximum Funded
Amount: means the aggregate maximum amount which Lessor has agreed to
make available to Lessee to cover the Actual Cost of all of the Approved
Projects and which Lessor may elect to invest in the Structural Projects, to
wit, Twenty Five Million and no/100 Dollars ($25,000,000).

      

      Project Costs: means
all costs and fees paid or accrued in connection with an Approved Project or
Structural Project.

       

      Project Management
Agreement: has the meaning set forth in Section 2(d).

       

      Proposed Structural Project
Budget: has the meaning set forth in Section 2(b).

       

      Proposed Structural Project
Description: has the meaning set forth in Section 2(b).

       

      Proposed Structural Project
Rent Adjustment: has the meaning set forth in Section 2(b).

       

      Proposed Structural Project
Timeline: has the meaning set forth in Section 2(b).

       

      Structural Project:
means any project at an Eligible Facility which modifies the footprint of the
Eligible Facility or involves a modification to any structural component of the
Eligible Facility, such as the roof, foundation or exterior walls.

       

      Target Completion
Date: means the date that is identified as the anticipated Substantial
Completion Date in the Project Description contemplated by Section 2(b) of this
Amendment.

       

      (c)           From
and after the date of this Amendment, each reference to the Existing Lease,
means the Existing Lease as modified by this Amendment.

      

      2. Landlord Sponsored
Projects.

       

      (a)           Structural Projects.
In addition to the Proposed Projects which Lessee is permitted to submit to
Lessor under the terms of the Existing Lease, Lessor shall have the right at any
time prior to December 31, 2009 to undertake, at its sole cost and expense,
Structural Projects at the Eligible Facilities.  In the event Lessor
elects to undertake a Structural Project the provisions of this Section 2 shall
govern such Structural Project.

       

      (b)           Project Description.
Lessor shall submit to Lessee, for Lessee’s review and approval, which approval
shall not be unreasonably withheld, a reasonably detailed description of the
Structural Project (the “Proposed Project
Description”), along with a proposed timeline for completion of the
Structural Project, which timeline shall include the anticipated Substantial
Completion Date (the “Proposed Structural Project
Timeline”), a proposed budget with respect thereto (the “Proposed Structural Project
Budget”) and Lessor’s estimate of the adjustment to the Base Rent, which
adjustment shall be calculated in accordance with the terms of the Existing
Lease, that is reasonably likely to occur upon completion of the construction
thereof (the “Proposed
Structural Project Rent Adjustment”). Lessor shall not commence the
proposed Structural Project until each of the Proposed Structural Project
Description, the Proposed Structural Project Timeline, the Proposed Structural
Project Budget and the Proposed Structural Project Rent Adjustment have been
approved by Lessee and once approved by Lessee such document shall be
collectively referred to herein as the “Approved Structural Project
Documents.”  Lessor and Lessee acknowledge and agree that the
actual adjustment to Base Rent shall be calculated based upon the actual funds
expended by Lessor, and not on the Proposed Structural Project Budget or on the
Approved Structural Project Documents. Lessee acknowledges and agrees that the
Proposed Structural Project Budget shall include (i) all reasonable costs
incurred by Lessor in connection with the Structural Project, including, but not
limited to, Lessor’s reasonable legal counsel and due diligence costs, title
insurance, survey, UCC searches and filing fees, if any, shall, and the fees of
Lessor’s Architect and (ii) Lessor’s financing costs related to the funds used
to pay for the Structural Project. In furtherance of the foregoing, during the
period from the Structural Project Start Date until the applicable Additional
Rent Commencement Date, financing costs on the portion of any Funded Amount
actually advanced for such Structural Project shall accrue at the rate of ten
percent (10%) per annum (such costs to be included within the definition of the
“Accrued Financing
Costs”).  Lessee acknowledges and agrees that the failure on
the part of Lessor to include any cost in the Proposed Structural Project Budget
or in the Approved Structural Project Documents, or to accurately estimate the
amount of any such cost, shall not preclude Lessor from including the full
amount of such cost in the Funded Amount.  In the month such financing
costs accrue, such financing costs shall be deemed to have been advanced as part
of the Funded Amount for all purposes under this Amendment; provided, however,
in calculating the Additional Project Rent there shall be no compounding of the
Accrued Financing Costs.

       

      (c)           General Contractor.
Lessor’s obligation to undertake the Structural Project shall be specifically
conditioned on Lessor entering into a contract with a general contractor
acceptable to Lessor in the exercise of its sole and absolute judgment and on
terms and conditions acceptable to Lessor in the exercise of its sole and
absolute judgment.

       

      (d)           Project Management.
Lessor shall have the right, but not the obligation, in connection with any
Structural Project to engage Lessee (or one or more of its Affiliates) to
supervise the day to day construction and completion of the Project pursuant to
a project management agreement to be entered into by Lessor and Lessee on terms
and conditions acceptable to Lessor in the exercise of its sole and absolute
judgment (the “Project
Management Agreement”).   Lessee acknowledges and agrees
that, for purposes of Section 16.1.13 of the Master Lease, it shall be an Event
of Default under the Master Lease if Lessee defaults in its obligations under
the Project Management Agreement and such default is not cured within any cure
period set forth in the Project Management Agreement (as compared to in Section
16.1.13) and the applicable Structural Project is not completed by the Target
Completion Date as a result of such uncured default under the Project Management
Agreement.

       

      (e)           Character of
Construction.  All construction of the Structural Projects will
be of sound materials, in good and workmanlike manner, free and clear of all
liens, claims and encumbrances (other than the liens and security interests
securing the obligations of the Lessee under the Existing Lease), and in
compliance with all laws, ordinances, regulations and restrictions affecting the
applicable Eligible Facility and all requirements of all governmental
authorities having jurisdiction over the applicable Eligible Facility and of the
appropriate board of fire underwriters or other similar body, if any, and any
applicable health care authority.

       

      (f)           Records and
Reports.   During the construction period and for a period
of six (6) months after the Additional Rent Commencement Date for a Structural
Improvement, Lessor will use commercially reasonable efforts to maintain
accurate and complete books and records relating to the Structural Project,
including, but not limited to, (i) copies and lists of all paid and unpaid bills
for labor and materials with respect to the Structural Project, (ii)
construction budgets and revisions thereof showing the estimated cost of the
Structural Projects and the source of the funds required at any given time to
complete and pay for the same, (iii) receipted bills or other evidence of
payment with respect to the cost of the Structural Project, and (iv) such
reports as to other matters relating to the Structural Project as Lessee may
reasonably request.

       

      (g)           Access.  Notwithstanding
anything to the contrary contained in this Lease, Lessee will permit Lessor and
Lessor's representatives to have access to any Eligible Facility at which a
Structural Project is being performed at all reasonable times and to conduct
such investigations and inspections thereof as Lessor shall determine necessary,
including without limitation in connection with inspecting all work done, labor
performed and materials furnished in connection with each Structural
Project.  Lessee will cooperate with Lessor and its representatives
and agents during such inspections.  All inspections that may be
performed by Lessor and its agents will be exclusively for the benefit of Lessor
and will impose no obligation whatever upon Lessor for the benefit of any
person.  No inspection by Lessor will create any obligation on Lessor
other than the obligations otherwise specifically imposed on Lessor under this
Amendment or the terms of any construction documents related to the Structural
Project to which Lessor may be a party or relieve Lessee of any obligation it
may have under the Existing Lease.

       

      (h)           Right to Withdraw a
Structural Project. Notwithstanding anything to the contrary set forth in
this Section 2, Lessor shall have the right, on written notice to Lessee, to
withdraw a Structural Project prior to the commencement of construction
thereof.

       

      (i)           Funding of a Structural
Project. Lessor shall be solely responsible for the payment of all
Project Costs related to each Structural Project.

       

      3. Structural Project
Rent.

       

      (a)           For
each Structural Project, commencing as of the Additional Rent Commencement Date,
either (i) the annual Litchfield Base Rent shall be increased by the Additional
Project Rent if such Structural Project is undertaken at a Litchfield Facility,
or (ii) the annual Non-Litchfield Base Rent shall be increased by the Additional
Project Rent if such Structural Project is undertaken at a Non-Litchfield
Facility.

       

      (b)           From
and after the applicable Additional Rent Commencement Date, such Additional
Project Rent shall be part of the Litchfield Base Rent or Non-Litchfield Base
Rent, as applicable, for all purposes under this Lease, including, but not
limited to, annual increase as set forth in the Existing Lease pursuant to the
formulas set forth in the definitions of Litchfield Base Rent or Non-Litchfield
Base Rent, as applicable.

       

      4. Unavoidable
Delay.  Section 14 of the First Amendment is hereby amended and
restated in its entirety at follows:

       

      14.           Unavoidable
Delay.  Upon the occurrence and during the continuance of an
Unavoidable Delay with respect to an Approved Project and the giving of written
notice thereof to Lessor, Lessee shall be temporarily released without any
liability on its part from the performance of its obligations to complete such
Approved Project, except for the obligation to pay any amounts due and owing
from Lessee (using the funds provided by Lessor under this Amendment, if
applicable), but only to the extent and only for the period that their
performance of each such obligation is prevented by the Unavoidable
Delay.  Upon the occurrence and during the continuance of an
Unavoidable Delay with respect to a Structural Project and the giving of written
notice thereof to Lessee, Lessor shall be temporarily released without any
liability on its part from the performance of its obligations to complete such
Structural Project, but only to the extent and only for the period that their
performance of each such obligation is prevented by the Unavoidable
Delay.  In each case, such notice shall include a description of the
nature of the Unavoidable Delay, and its cause and possible consequences. Lessee
or Lessor, as applicable, shall promptly notify the other party of the
termination of the event giving rise to the Unavoidable Delay.  During
the period that the performance by Lessee has been suspended by reason of an
Unavoidable Delay, Lessor may likewise suspend the performance of all or part of
its obligations under the First Amendment to the extent that such suspension is
commercially reasonable and, notwithstanding anything in this Lease to the
contrary, Lessor shall have no obligation to make disbursements of the Funded
Amount with respect to such Approved Project other than with respect to requests
for reimbursement submitted by Lessee for work completed at the applicable
Approved Project prior to the onset of any such Unavoidable Delay.

       

      5. Expenses of
Lessor.  All reasonable costs incurred by Lessor in connection
with any Structural Project, including, but not limited to, Lessor’s reasonable
legal counsel and due diligence costs, title insurance, survey, UCC searches and
filing fees, if any, and the fees of Lessor’s Architect shall be added to the
Funded Amount for any Structural Project.

       

      6. Enforceability of
Lease.  Except as expressly and specifically set forth in this
Amendment, the Existing Lease remain unmodified and in full force and
effect.

       

      7. Execution and
Counterparts.  This Amendment may be executed in any number of
counterparts, each of which, when so executed and delivered, shall be deemed to
be an original, but when taken together shall constitute one and the same
Amendment.

       

      8. Headings;
Exhibits.  Section headings used in this Amendment are for
reference only and shall not affect the construction of the
Agreement.  All exhibits and attachments attached hereto are
incorporated herein by this reference.

       

      9. Entire
Agreement.  This Amendment together with the Existing Lease and
the other Transaction Documents is intended by the parties to be a complete and
exclusive statement of the agreement and understanding of the parties in respect
of the subject matter contained herein and therein.

       

       

      SIGNATURES
ON FOLLOWING PAGE

       

      
        
          
            

             

             

          

           

        

        
           

          
            

          

        

        
           

          
            Signature
Pages To

            SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED MASTER LEASE

            

          

        

      

      IN
WITNESS WHEREOF, the parties hereby execute this Second Amendment to Second
Amended and Restated Master Lease effective as of the day and year first set
forth above.

       

      LESSOR:

       

      DELTA
INVESTORS I, LLC, a Maryland limited liability company, and

      DELTA
INVESTORS II, LLC, a Maryland limited liability company

      OHI
ASSET, LLC, a Delaware limited liability company

      OHI ASSET
(CA), LLC, a Delaware limited liability company

      OHI ASSET
(CO), LLC, a Delaware limited liability company

      OHI ASSET
(ID), LLC, a Delaware limited liability company

      

      
        	
                 
      

              	
                By:

              	
                OMEGA
      HEALTHCARE INVESTORS, INC., a Maryland corporation, Its
    Member

              

      

       

      By:     
/s/ Daniel J.
Booth                                                                

      Name:  Daniel J.
Booth                                                      

      Title:    Chief Operating
Officer                                                      

       

      OHIMA,
INC., a Massachusetts corporation

       

      

      By:              
 /s/ Daniel J.
Booth                                           

      Name:          
 Daniel J.
Booth                                           

      Title:              Chief Operating
Officer

       

      OMEGA:

       

      OMEGA
HEALTHCARE INVESTORS, INC., a Maryland corporation

       

      

       

      By:           
   /s/
Daniel J.
Booth                                           

      Name:          Daniel J.
Booth                                           

      Title:            Chief Operating
Officer

       

      
        
          
            Signature
Page - 1 of 4

          

        

        
           

          
            

            Signature
Pages To

            SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED MASTER LEASE

          

        

        
           

        

      

      STATE OF
MARYLAND                   )

      ) ss.

      COUNTY OF
BALTIMORE               )

      

      This instrument was acknowledged before
me on the 26th
day of February, 2009, by
Daniel J.
Booth, the COO of OHIMA, Inc., a
Massachusetts corporation, and Omega Healthcare Investors, Inc., a Maryland
corporation, the sole member of Delta Investors I, LLC, a Maryland limited
liability company, Delta Investors II, LLC, a Maryland limited liability
company, OHI Asset, LLC, a Delaware limited liability company, OHI Asset (CA),
LLC, a Delaware limited liability company, OHI Asset (CO), LLC, a Delaware
limited liability company, OHI Asset (ID), LLC, a Delaware limited liability
company, on behalf of said corporations and companies.

      

      Judith A.
Jacobs

      Notary Public, Baltimore County,
MD

      My commission expires: May 12,
2012

      
        
          
            

            Signature
Page - 2 of 4

          

           

        

        
           

          
            

          

        

        
           

          
            Signature
Pages To

            SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED MASTER LEASE

            

          

        

      

      

       

      LESSEE:

       

      SUNBRIDGE
CARE ENTERPRISES, INC., a Delaware corporation

      SUNBRIDGE
CIRCLEVILLE HEALTH CARE CORP., an Ohio corporation

      SUNBRIDGE
BECKLEY HEALTH CARE CORP., a West Virginia corporation

      SUNBRIDGE
PUTNAM HEALTH CARE CORP., a West Virginia corporation

      SUNBRIDGE
BRASWELL ENTERPRISES, INC., a California corporation

      SUNBRIDGE
MEADOWBROOK REHABILITATION CENTER, a California corporation

      SUNBRIDGE
DUNBAR HEALTH CARE CORP., a West Virginia corporation

      SUNBRIDGE
MARION HEALTH CARE CORP., an Ohio corporation

      SUNBRIDGE
SALEM HEALTH CARE CORP., a West Virginia corporation

      SUNBRIDGE
REGENCY-NORTH CAROLINA, INC., a North Carolina corporation

      SUNBRIDGE
HEALTHCARE CORPORATION, a New Mexico corporation

      SUNBRIDGE
SHANDIN HILLS REHABILITATION CENTER, a California corporation

      SUNBRIDGE
REGENCY-TENNESSEE, INC., a Tennessee corporation

      FALMOUTH
HEALTHCARE, LLC, a Delaware limited liability company

      MASHPEE
HEALTHCARE, LLC, a Delaware limited liability company

      WAKEFIELD
HEALTHCARE, LLC, a Delaware limited liability company

      WESTFIELD
HEALTHCARE, LLC, a Delaware limited liability company

      PEAK
MEDICAL COLORADO NO. 2, INC., a Delaware corporation

      PEAK
MEDICAL OF IDAHO, INC., a Delaware corporation

      PEAK
MEDICAL OF BOISE, INC., a Delaware corporation

       

      

      By:           /s/ Michael A.
Montevideo                                                                

      Name:       Michael A.
Montevideo                                                      

      Title:         Treasurer                                           

       

      GUARANTOR:

       

      SUN
HEALTHCARE GROUP, INC., a Delaware corporation

      PEAK
MEDICAL CORPORATION, a Delaware corporation

      HARBORSIDE
HEALTHCARE CORPORATION, a Delaware corporation

       

      By:           /s/ Michael A.
Montevideo                                                                

      Name:       Michael A.
Montevideo                                                      

      Title:         Treasurer                                           

       

      
        
          
            Signature
Page - 3 of 4

          

        

        
           

          
            

          

        

        
          
            Signature
Pages To

            SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED MASTER LEASE

            

          

        

      

      STATE OF
California                          )

      ) ss.

      COUNTY OF
Orange  
        )

      

      This instrument was acknowledged before
me on the 26th
day of February, 2009, by
Michael A.
Montevideo, the Treasurer of Sun
Healthcare Group, Inc., a Delaware corporation, Peak Medical Corporation, a
Delaware corporation, Harborside Healthcare Corporation, a Delaware corporation,
SunBridge Care Enterprises, Inc., a Delaware corporation, SunBridge Circleville
Health Care Corp., an Ohio corporation, SunBridge Beckley Health Care Corp., a
West Virginia corporation, SunBridge Putnam Health Care Corp., a West Virginia
corporation, SunBridge Braswell Enterprises, Inc., a California corporation,
SunBridge Meadowbrook Rehabilitation Center, a California corporation, SunBridge
Dunbar Health Care Corp., a West Virginia corporation, SunBridge Marion Health
Care Corp., an Ohio corporation, SunBridge Salem Health Care Corp., a West
Virginia corporation, SunBridge Regency-North Carolina, Inc., a North Carolina
corporation, SunBridge Healthcare Corporation, a New Mexico
corporation,  SunBridge Shandin Hills Rehabilitation Center, a
California corporation, SunBridge Regency-Tennessee, Inc., a Tennessee
corporation, Falmouth Healthcare, LLC, a Delaware limited liability company,
Mashpee Healthcare, LLC, a Delaware limited liability company, Wakefield
Healthcare, LLC, a Delaware limited liability company, Westfield Healthcare,
LLC, a Delaware limited liability company, Peak Medical Colorado No. 2, Inc., a
Delaware corporation, Peak Medical of Idaho, Inc., a Delaware corporation, and
Peak Medical of Boise, Inc., a Delaware corporation, on behalf of said
corporations and companies.

      

      Judith
Monk                                                      

      Notary Public, Orange County, CA

      My commission expires: March 11,
2010

      

       

      
        
          
            

            Signature
Page - 4 of 4Unassociated Document

    

      
        

      

    

    
 

    EIGHTH
AMENDMENT TO CONSOLIDATED

    AMENDED
AND RESTATED MASTER LEASE

    

    This
Eighth Amendment to Consolidated Amended and Restated Master Lease (this “Amendment”) is
executed and delivered as of March 31, 2009 by and between STERLING ACQUISITION
CORP., a Kentucky corporation (“Lessor”), the address
of which is 9690 Deereco Road, Suite 100, Timonium, MD 21093, and DIVERSICARE
LEASING CORP., a Tennessee corporation, the address of which is 1621 Galleria
Boulevard, Brentwood, TN  37027.

     

    RECITALS:

    

    A.           Lessee
has executed and delivered to Lessor a Consolidated Amended and Restated Master
Lease dated as of November 8, 2000, but effective as of October 1, 2000 (the
“Master
Lease”), as amended by a First Amendment to Consolidated Amended and
Restated Master Lease dated as of September 30, 2001 (the “First Amendment”), a
Second Amendment to Consolidated Amended and Restated Master Lease dated as of
June 15, 2005 (the “Second Amendment”), a
Third Amendment to Consolidated Amended and Restated Master Lease dated as of
October 20, 2006 (the “Third Amendment”), a
Fourth Amendment to Consolidated Amended and Restated Master Lease dated as of
April 1, 2007 (the “Fourth Amendment”), a
Fifth Amendment to Consolidated Amended and Restated Master Lease dated as of
August 10, 2007 (the “Fifth Amendment”), a
Sixth Amendment to Consolidated Amended and Restated Master Lease dated as of
March 14, 2008 (the “Sixth Amendment”) and
a Seventh Amendment to Consolidated Amended and Restated Master Lease dated as
of October 24, 2008 (collectively, the “Existing Master
Lease”) pursuant to which Lessee leases from Lessor certain healthcare
facilities.

     

    B.           The
State of Arkansas has filed suit in the Circuit Court of Garland County,
Arkansas (the “Court”) to condemn
the real property described in Schedule 1 to this
Amendment (the “Condemned
Property”).

     

    C.           Pursuant
to a Consent Judgment among Lessee, Lessor and the State of Arkansas, Lessee and
Lessor have consented to such condemnation.

     

    D.           Lessor
and Lessee desire to delete the Condemned Property from the definition of “Land”
in the Master Lease.

     

    NOW
THEREFORE, the parties agree as follows:

     

    1. Definitions.  Any
capitalized term used but not defined in this Amendment will have the meaning
assigned to such term in the Master Lease.  From and after the date of
this Amendment, each reference in the Existing Master Lease or the other
Transaction Documents to the “Lease” or “Master Lease” means, as applicable, the
Existing Master Lease as modified by this Amendment.

     

    2. Condemned
Property.  Effective upon the entry by the Court of the Consent
Judgment, Exhibit
A-9 to the Existing Master Lease is amended and restated in its entirety
by Exhibit A-9
to this Amendment such that the Condemned Property is deleted from the real
property defined as the “Land” in the Master Lease and is no longer covered by
the Master Lease.

     

    3. Representations and
Warranties of Lessee.  Lessee hereby represents and warrants to
Lessor that (i) it has the right and power and is duly authorized to enter into
this Amendment; and (ii) the execution of this Amendment does not and will not
constitute a breach of any provision contained in any agreement or instrument to
which Lessee is or may become a party or by which Lessee is or may be bound or
affected.

     

    4. Execution and
Counterparts.  This Amendment may be executed in any number of
counterparts, each of which, when so executed and delivered, shall be deemed to
be an original, but when taken together shall constitute one and the same
Amendment.

     

    5. Headings.  Section
headings used in this Amendment are for reference only and shall not affect the
construction of the Amendment.

     

    6. Enforceability.  Except
as expressly and specifically set forth herein, the Existing Master Lease
remains unmodified and in full force and effect.  In the event of any
discrepancy between the Existing Master Lease and this Amendment, the terms and
conditions of this Amendment will control and the Existing Master Lease is
deemed amended to conform hereto.

     

    [SIGNATURE
PAGES AND ACKNOWLEDGEMENTS FOLLOW]

    

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
          Signature
Page to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    LESSOR:

    

    STERLING
ACQUISITION CORP.,

    a
Kentucky corporation

    

    

    By:/s/ Daniel J.
Booth                                                                

    Name:
Daniel J. Booth

    Title:   Chief
Operating Officer

    

    

    STATE OF
MARYLAND             )

    
 

    COUNTY OF
BALTIMORE          )

    

    This
instrument was acknowledged before me on the 24th day of March,
2009, by Daniel Booth, the COO of STERLING ACQUISITION CORP., a Kentucky
corporation, on behalf of said company.

    

    Judith A.
Jacobs                                                      

    Notary Public, Baltimore County,
MD

    My commission expires:  May
12, 2012

    

    

    
      
        
          Signature
Page 1 of 2

        

         

      

      
         

        
          

        

      

      
         

        
          Signature
Page to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    LESSEE:

    

    DIVERSICARE
LEASING CORP.,

    a
Tennessee corporation

    

    

    By:/s/ Glynn
Riddle                                           

    Name:   Glynn
Riddle

    Title:     EVP
and CFO

    

    

    STATE OF
TENNESSEE                   )

    

    COUNTY OF
WILLIAMSON           )

    

    This
instrument was acknowledged before me on the 25th day of March, 2009, by Glynn
Riddle, the EVP & CFO of DIVERSICARE LEASING CORP., a Tennessee corporation,
on behalf of said company

    

    

    Jacqueline S.
Reed                                                      

    Notary Public, Tenn. County,
Williamson

    My commission expires:
1/24/2010

    

    

    

    
      
        
          Signature
Page 2 of
2

        

         

      

      
         

        
          

        

      

      
         

        
          Acknowledgment
to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    The
undersigned hereby consent to the transactions contemplated by this Eighth
Amendment to Consolidated Amended and Restated Master Lease (the “Seventh Amendment”),
ratify and affirm their respective Guaranties, Pledge Agreements, Security
Agreements, Subordination Agreements and other Transaction Documents, and
acknowledge and agree that the performance of the  Master Lease and
obligations described therein are secured by their Guaranties, Pledge
Agreements, Security Agreement, Subordination Agreement and other Transaction
Documents on the same terms and conditions in effect prior to this Seventh
Amendment.

     

    ADVOCAT,
INC. a Delaware corporation

    

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:         EVP
& CFO

    

    

    

    STATE OF
TENNESSEE                  )

    

    COUNTY OF
WILLIAMSON          )

    

    The
foregoing instrument was acknowledged before me this 25th day of March, 2009, by Glynn
Riddle, who is EVP & CFO of ADVOCAT, INC. a Delaware corporation, on behalf
of the corporation, who acknowledged the same to be his or her free act and deed
and the free act and deed of the corporation.

    

    

    Jacqueline S.
Reed                                                      

    Notary
Public, Tenn. County, Williamson

    My
Commission Expires: 1/24/2010

    

    

    

    

    
      
        
          Acknowledgment
Page 1 of 5

        

         

      

      
         

        
          

        

      

      
         

        
          Acknowledgment
to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    DIVERSICARE
MANAGEMENT SERVICES CO.,

    a
Tennessee corporation

    

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:          EVP
& CFO

    

    

    

    STATE OF
TENNESSEE                            )

    

    COUNTY OF
WILLIAMSON                    )

    

    The
foregoing instrument was acknowledged before me this 25th day of March, 2009, by Glynn
Riddle, who is EVP & CFO of DIVERSICARE MANAGEMENT SERVICES CO., a Tennessee
corporation, on behalf of the corporation, who acknowledged the same to be his
or her free act and deed and the free act and deed of the
corporation.

    

    

    Jacqueline S.
Reed                                                      

    Notary
Public, Tenn. County, Williamson

    My
Commission Expires: 1/24/2010

    

    

    

    

    

    

    
      
        
          Acknowledgment
Page  2 of 5

        

         

      

      
         

        
          

        

      

      
         

        
          Acknowledgment
to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    ADVOCAT
FINANCE INC.,

    a
Delaware corporation

    

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:          EVP
& CFO

    

    STATE OF
TENNESSEE                                      )

    

    COUNTY OF
WILLIAMSON                              )

    

    The
foregoing instrument was acknowledged before me this 25th day of March, 2009, by Glynn
Riddle, who is EVP & CFO of ADVOCAT FINANCE INC., a Delaware corporation, on
behalf of the corporation, who acknowledged the same to be his or her free act
and deed and the free act and deed of the corporation.

    

    

    Jacqueline S.
Reed                                           

    Notary
Public, Tenn. County, Williamson

    My
Commission Expires: 1/24/2010

    

    

    

    

    

    

    
      
        
          Acknowledgment
Page 3 of 5

        

         

      

      
         

        
          

        

      

      
         

        
          Acknowledgment
to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    STERLING
HEALTH CARE

    MANAGEMENT,
INC., a Kentucky corporation

    

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:          EVP
& CFO

    

    

    

    STATE OF
TENNESSEE                                         )

    

    COUNTY OF
WILLIAMSON                                 )

    

    The
foregoing instrument was acknowledged before me this 25th day of March,
2009, by Glynn Riddle, who is EVP & CFO of STERLING HEALTH CARE MANAGEMENT,
INC., a Kentucky corporation, on behalf of the corporation, who acknowledged the
same to be his or her free act and deed and the free act and deed of the
corporation.

    

    

    Jacqueline S.
Reed                                                      

    Notary
Public, Tenn. County, Williamson

    My
Commission Expires: 1/24/2010

    

    

    

    

    

    
      
        
          Acknowledgment
Page 4 of 5

        

         

      

      
         

        
          

        

      

      
         

        
          Acknowledgment
to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

          

        

      

    

    DIVERSICARE
TEXAS I, LLC

    

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:         EVP
& CFO

    

    

    

    DIVERSICARE
BALLINGER, LLC

    DIVERSICARE
DOCTORS, LLC

    DIVERSICARE
ESTATES, LLC

    DIVERSICARE
HUMBLE, LLC

    DIVERSICARE
KATY, LLC

    DIVERSICARE
NORMANDY TERRACE, LLC

    DIVERSICARE
TREEMONT, LLC

    

    BY:           DIVERSICARE
TEXAS I, LLC,

    its sole
member

    

    By:           /s/ Glynn
Riddle                                           

    Name:       Glynn
Riddle

    Title:         EVP
& CFO

    

    

    STATE OF
TENNESSEE                            )

    

    COUNTY OF
WILLIAMSON                    )

    

    The
foregoing instrument was acknowledged before me this 25th
day of March, 2009, by Glynn Riddle, who is EVP & CFO of DIVERSICARE TEXAS
I, LLC, on behalf of itself and as the sole member of each of DIVERSICARE
BALLINGER, LLC, DIVERSICARE DOCTORS, LLC, DIVERSICARE ESTATES, LLC, DIVERSICARE
HUMBLE, LLC, DIVERSICARE KATY, LLC, DIVERSICARE NORMANDY TERRACE, LLC, and
DIVERSICARE TREEMONT, LLC, each a Delaware limited liability company, on behalf
of the limited liability companies, who acknowledged the same to be his or her
free act and deed and the free act and deed of the limited liability
companies.

    

    

    Jacqueline S.
Reed                                                      

    Notary
Public, Tenn. County, Williamson

    My
Commission Expires: 1/24/2010

    

    

    
      
        
          Acknowledgment
Page 5 of 5

        

         

      

      
         

        
          

        

      

      
         

        
          Exhibit
and Schedules to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

        

      

    

    Schedule
1

    

    Condemned
Property

    

    Part of
the Northeast Quarter of the Northeast Quarter of Section 22, Township 3 South;
Range 19 West, Garland County, Arkansas, more particularly described as
follows:

    

    Commencing
at a 2 inch pipe being used as the Northeast sixteenth corner of Section 22:
thence North 01° 24’
08” East along the West line of the Northeast Quarter of the Northeast Quarter
of Section 22 a distance of 517.69 feet to a point on the Northwesterly
prescriptive right of way line of Arkansas State Highway 128 as established by
Affidavit from AHTD dated December 15, 2004; thence in a Northeasterly direction
along said right of way line on a curve to the right having a radius of 425.84
feet a distance of 4.26 feet having a chord bearing of North 62° 38’ 50” East a distance of
4.26 feet to a point; thence North 62° 56’ 01” East along said
right of way line a distance of 109.43 feet to a point; thence North 64° 00’ 24” East along said
right of way line a distance of 298.50 feet to a point on the Northwesterly
right of way line of Arkansas State Highway 128 as established by AHTD Job
061137 for the POINT OF BEGINNING; thence North 10° 56' 53" East along said
right of way line a distance of 49.99 feet to a point; thence North 66° 27' 15" East along said
right of way line a distance of 240.21 feet to a point; thence South 65° 51' 16" East along said
right of way line a distance of 38.96 feet to a point on the Northwesterly
prescriptive right of way line of Arkansas State Highway 128 as established by
Affidavit from AHTD dated December 15, 2004; thence South 64° 10' 43" West along said
right of way line a distance of 68.93 feet to a point; thence South 64° 00' 24" West along said
right of way line a distance of 226.07 feet to the point of beginning and
containing 0.21 acres more or less as shown on plans prepared by the AHTD
referenced as Job 061137.

    

    End of
Description

    
      
        
          Schedule
1 – Page 1 of 1

        

         

      

      
         

        
          

        

      

      
         

        
          Exhibit
and Schedules to

          EIGHTH
AMENDMENT TO CONSOLIDATED

          AMENDED
AND RESTATED MASTER LEASE

          

        

      

    

    EXHIBIT
A-9

    

    DESCRIPION
OF LAND

    

    Name of
Facility:                
Garland Nursing and Rehabilitation Center

    

    Facility
Address:                
610 Carpenter Dam Road

    Hot Springs, Arkansas
71901

    

    Name of
Facility:                   Garland
Village Apartments

    

    Facility
Address:                  600
Carpenter Dam Road

    Hot Springs, Arkansas
71901

    

    Legal
Description:

    

    Garland Nursing and
Rehabilitation Center

    

    A part of
the NE 1⁄4 NE 1⁄4 of Section 22, Township 3 South, Range 19 West, Garland County,
Arkansas, and more particularly described as follows: Commence at the Northwest
corner of the said NE 1⁄4 NE 1⁄4 of Section 22; thence South along the West line of
said NE 1⁄4 NE 1⁄4 a distance of 281 feet to the point of beginning; thence East 402
feet; thence South 295 feet to the North right-of-way of State Highway No. 128;
thence South 63 degrees 25 minutes West along said right-of-way 450 feet to the
West line of said NE 1⁄4 NE 1⁄4; thence North 500 feet to the point of beginning.
LESS AND EXCEPT the following three tracts of land:

    

    Tract
A:  Begin at the Northwest corner of the said NE 1⁄4 NE 1⁄4; thence East
along the North line thereof a distance of 1,231.5 feet to the West right-of-way
line of State Highway No. 128, which is the point of beginning; thence West 10
feet; thence Southwesterly along a line which is parallel to and Northwesterly a
distance of 10 feet from said West right-of-way line of State Highway No. 128,
as presently located, a distance of 1,515 feet, more or less, to a point on the
West line of the said NE 1⁄4 NE 1⁄4 which is 10 feet more or less from said West
right-of-way line; thence South along the West line of said NE 1⁄4 NE 1⁄4 to the
West right-of-way line; thence Northeasterly along said West right-of-way line a
distance of 1,545.50 feet to the point of beginning; being a strip of ground 10
feet wide and adjacent to the West right-of-way of Sate Highway No. 128 (also
known as Carpenter Dam Road) which is the Southeasterly 10 feet of the total
tract of real property described in Deeds appearing in Deed Book 919 at Pages
42, 43, 45, 46, 47, 231 and 232, all in the records of the Circuit Clerk and
Ex-Officio Recorder of Garland County, Arkansas.

    

    Tract
B:  Commence at the Northwest corner of the said NE 1⁄4 NE 1⁄4; thence
South along the West line of said NE 1⁄4 NE 1⁄4 a distance of 281.0 feet; thence
East 300 feet to the point of beginning; thence continue East 102 feet; thence
South 211.69 feet; thence South 62 degrees 23 minutes West 31.76 feet; thence
North 27 degrees 52 minutes West 158.0 feet; thence North 86.76 feet to the
point of beginning.

    

    TRACT NO.
C

    Part of
the Northeast Quarter of the Northeast Quarter of Section 22, Township 3 South;
Range 19 West, Garland County, Arkansas, more particularly described as
follows:

    

    Commencing
at a 2 inch pipe being used as the Northeast sixteenth corner of Section 22:
thence North 01° 24’
08” East along the West line of the Northeast Quarter of the Northeast Quarter
of Section 22 a distance of 517.69 feet to a point on the Northwesterly
prescriptive right of way line of Arkansas State Highway 128 as established by
Affidavit from AHTD dated December 15, 2004; thence in a Northeasterly direction
along said right of way line on a curve to the right having a radius of 425.84
feet a distance of 4.26 feet having a chord bearing of North 62° 38’ 50” East a distance of
4.26 feet to a point; thence North 62° 56’ 01” East along said
right of way line a distance of 109.43 feet to a point; thence North 64° 00’ 24” East along said
right of way line a distance of 298.50 feet to a point on the Northwesterly
right of way line of Arkansas State Highway 128 as established by AHTD Job
061137 for the POINT OF BEGINNING; thence North 10° 56' 53" East along said
right of way line a distance of 49.99 feet to a point; thence North 66° 27' 15" East along said
right of way line a distance of 240.21 feet to a point; thence South 65° 51' 16" East along said
right of way line a distance of 38.96 feet to a point on the Northwesterly
prescriptive right of way line of Arkansas State Highway 128 as established by
Affidavit from AHTD dated December 15, 2004; thence South 64° 10' 43" West along said
right of way line a distance of 68.93 feet to a point; thence South 64° 00' 24" West along said
right of way line a distance of 226.07 feet to the point of beginning and
containing 0.21 acres more or less as shown on plans prepared by the AHTD
referenced as Job 061137.

    

    Garland Village
Apartments

    

    A part of
the NE 1⁄4 NE 1⁄4 of Section 22, Township 3 South, Range 19 West, Garland County,
Arkansas, and more particularly described as follows:

    

    Commence
at the Northwest corner of the said NE 1⁄4 NE 1⁄4 of Section 22; thence South 281.0
feet; thence East 300.0 feet to the point of beginning; thence North 15 feet;
thence East 218 feet; thence South 166 feet; thence South 62 degrees 23 minutes
West 162.69 feet; thence North 27 degrees 52 minutes West 158.0 feet; thence
North 86.74 feet to the point of beginning.

    

    All being
the same property conveyed to Omega Healthcare Investors, Inc. by Warranty Deed
from Diversicare Corporation of America – Arkansas recorded in Record Book 1452,
Page 735, Circuit Clerk and Ex-Officio Recorder, Garland County, Arkansas; and
further conveyed to Sterling Acquisition Corp., a Kentucky corporation, by
General Warranty Deed recorded in Book 2005, Pages 932-935 in the Office of the
Circuit Clerk and Ex-Officio Recorder, Garland County, Arkansas; provided that
Tract C above was conveyed to the State of Arkansas pursuant to a Consent
Judgment entered in the Circuit Court for the County of Garland, State of
Arkansas, and recorded in Book ____, Page ___ in the Office of the Circuit Clerk
and Ex-Officio Recorder, Garland County, Arkansas.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]