Document:

<PAGE>
                                                                  EXHIBIT 10.152

           EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER

         This Eighth Amendment to Loan and Security Agreement and Waiver (this
"EIGHTH AMENDMENT") is entered into as of the 25th day of February, 2002,
between RAMSAY YOUTH SERVICES, INC., a Delaware corporation, f/k/a RAMSAY HEALTH
CARE, INC. ("HOLDINGS"), with its principal place of business at Columbus
Center, One Alhambra Plaza, Suite 750, Coral Gables, Florida 33134, each of the
Subsidiaries of Holdings party to this Eighth Amendment and listed in EXHIBIT B
to the Loan Agreement (the "HOLDINGS SUBSIDIARIES"), each of which is a
corporation or other legal entity as indicated in EXHIBIT B, is organized under
the laws of the jurisdiction indicated in EXHIBIT B, and has its principal place
of business at the location indicated in EXHIBIT B (Holdings, the Holdings
Subsidiaries, and each other Subsidiary of Holdings or of any Subsidiary of
Holdings from time to time party to the Loan Agreement referred to below are
hereinafter collectively referred to as "BORROWERS" and each individually as a
"BORROWER"), and FLEET CAPITAL CORPORATION, a Rhode Island corporation (in its
individual capacity, "FCC"), with offices at 5950 Sherry Lane, Suite 300,
Dallas, Texas 75225, as a Lender, and as agent for all Lenders, in such
capacity, "AGENT"), and such Persons who are or hereafter become parties to the
Loan Agreement as a Lender. Capitalized terms used but not defined in this
Eighth Amendment have the meanings assigned to them in Appendix A of that
certain Loan and Security Agreement dated October 30, 1998, among Borrowers,
Lenders and Agent, as amended (the "LOAN AGREEMENT").

                              W I T N E S S E T H:

         WHEREAS, Ramsay Louisiana, Inc., a Delaware corporation, Ramsay
Hospital Corporation of Louisiana, Inc., a Louisiana corporation and Bethany
Psychiatric Hospital, Inc., an Oklahoma corporation merged into Ramsay Managed
Care, Inc. on June 20, 2001 (the "MANAGED CARE MERGER")

         WHEREAS, Ramsay Educational Services, Inc. filed a name change and is
now doing business as Ramsay Treatment Services, Inc. (the "RAMSAY TREATMENT
NAME CHANGE");

         WHEREAS, Events of Default exist pursuant to (i) SECTION 10.1.3 of the
Loan Agreement as a result of Holdings' failure, on a Consolidated basis, to
comply with the Capital Expenditures requirement for the twelve calendar month
period ending on December 31, 2001, as required pursuant to SECTION 8.2.9 of the
Loan Agreement and (ii) SECTION 7.1.4 of the Loan Agreement as a result of
Holdings' failure to notify Agent that the name of Ramsay Educational Services,
Inc. had changed to Ramsay Treatment Services, Inc. (the "EXISTING EVENTS OF
Default");

         WHEREAS, the Borrowers have requested that Agent and Lenders (i) waive
the Existing Events of Default; (ii) amend the Loan Agreement to (a) increase
the Revolving Credit Loan Commitment, (b) make an additional advance on the Term
Loan, (c) increase the permitted Capital Expenditures and (d) make certain other
revisions to the terms of the Loan Agreement; and

<PAGE>

         WHEREAS, subject to the terms and conditions herein contained, Agent
and Lenders have agreed to the Borrowers' request to waive the Existing Events
of Default and amend the Loan Agreement as set forth in this Eighth Amendment.

         NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed,
Borrowers, Agent and Lenders hereby agree as follows:

         SECTION 1. Subject to the satisfaction of each condition precedent set
forth in SECTION 3 hereof and in reliance on the representations, warranties,
covenants and agreements contained in this Eighth Amendment, the Loan Agreement
shall be amended effective February 25, 2002 (the "EIGHTH AMENDMENT EFFECTIVE
DATE") in the manner provided in this SECTION 1:

         1.1 AMENDED DEFINITION. The following definition contained in APPENDIX
A to the Loan Agreement shall be amended to read in its entirety as follows:

         BORROWING BASE - AS AT ANY DATE OF DETERMINATION THEREOF, AN AMOUNT
         EQUAL TO THE LESSER OF:

                           (1) FIFTEEN MILLION DOLLARS ($15,000,000); OR

                           (2) (a) PRIOR TO THE BORROWING BASE CHANGE DATE, THE
                  AMOUNT EQUAL TO FIFTY PERCENT (50%) OF THE AMOUNT OF NET
                  ACCOUNTS AS DETERMINED FROM THE MOST RECENT CONSOLIDATED
                  BALANCE SHEET OF BORROWERS FURNISHED TO AGENT PURSUANT TO
                  SECTION 8.1.3(II), OR (B) FROM AND AFTER THE BORROWING BASE
                  CHANGE DATE, AN AMOUNT EQUAL TO THE SUM OF (I) EIGHTY-FIVE
                  PERCENT (85%) OF NET ELIGIBLE ACCOUNTS; PLUS (II) THE LESSER
                  OF (X) $3,000,000 AND (Y) EIGHTY-FIVE PERCENT (85%) OF NET
                  ELIGIBLE UNBILLED ACCOUNTS; PLUS (III) THE LESSER OF (X)
                  $350,000 AND (Y) EIGHTY-FIVE PERCENT (85%) OF NET ELIGIBLE
                  SELF-PAY ACCOUNTS; MINUS (IV) ANY AMOUNTS WHICH AGENT
                  REASONABLY EXPECTS IT OR LENDERS MAY BE OBLIGATED TO PAY IN
                  THE FUTURE FOR THE ACCOUNT OF ANY BORROWER.

         MINUS (SUBTRACT (3) BELOW FROM THE LESSER OF (1) OR, AS APPLICABLE,
         (2)(a) OR (2)(b) ABOVE)

                           (3) AN AMOUNT EQUAL TO THE LC AMOUNT.

         1.2 INCREASE OF REVOLVING CREDIT LOAN COMMITMENT. Section 1.1.1 of the
Loan Agreement shall be amended by deleting the words "Twelve Million Dollars
($12,000,000)" from such Section and inserting the words "Fifteen Million
Dollars ($15,000,000)" in place thereof.

         1.3 INCREASE OF TERM LOAN. Section 1.2.1 of the Loan Agreement shall be
amended to read in its entirety as follows:

                  1.3.1 TERM LOAN. ON THE CLOSING DATE, SUBJECT TO THE
         FULFILLMENT OR WAIVER OF ALL CONDITIONS PRECEDENT TO THE EFFECTIVENESS
         OF THIS AGREEMENT, EACH LENDER SHALL MAKE TERM LOANS (COLLECTIVELY THE
         "CLOSING DATE TERM LOAN") TO BORROWERS IN THE AGGREGATE PRINCIPAL
         AMOUNT EQUAL TO THE AMOUNT SET FORTH BELOW SUCH LENDER'S NAME ON THE
         SIGNATURE PAGES HEREOF (SUCH LENDER'S "TERM LOAN COMMITMENT"). ON
         AUGUST 4, 2000, FCC SHALL MAKE A TERM LOAN TO BORROWERS OF $4,500,000
         (THE "AUGUST 2000 TERM LOAN"). ON FEBRUARY 25, 2002, FCC SHALL MAKE A

                                       2
<PAGE>

         TERM LOAN TO BORROWERS OF $1,500,000 (THE "FEBRUARY 2002 TERM LOAN,"
         TOGETHER WITH THE CLOSING DATE TERM LOAN AND THE AUGUST 2000 TERM LOAN,
         THE "TERM LOANS"). THE PERCENTAGE EQUAL TO THE QUOTIENT OF (X) EACH
         LENDER'S TERM LOAN COMMITMENT, DIVIDED BY (Y) THE AGGREGATE OF ALL TERM
         LOAN COMMITMENTS, IS SUCH LENDER'S "TERM LOAN PERCENTAGE." AFTER GIVING
         EFFECT TO THE FEBRUARY 2002 TERM LOAN, THE AGGREGATE AMOUNT OF THE TERM
         LOAN COMMITMENTS IS NINE MILLION ONE HUNDRED FIFTY FOUR THOUSAND SIX
         HUNDRED EIGHTY TWO AND 00/100 DOLLARS ($9,154,682.00). THE TERM LOANS
         SHALL BE EVIDENCED BY ONE OR MORE TERM NOTES TO BE EXECUTED AND
         DELIVERED BY BORROWERS TO LENDERS, WHICH SHALL BEAR INTEREST AS
         SPECIFIED IN SECTION 2.1 AND SHALL BE REPAYABLE IN ACCORDANCE WITH THE
         TERMS OF TERM NOTES. AMOUNTS REPAID WITH RESPECT TO THE TERM LOANS MAY
         NOT BE REBORROWED. THE PROCEEDS OF THE TERM LOANS SHALL BE USED BY
         BORROWERS SOLELY FOR PURPOSES OF REPAYING THE REVOLVING CREDIT LOANS.

         1.4 AMENDMENT TO CAPITAL EXPENDITURES COVENANT. Section 8.2.9 of the
Loan Agreement shall be amended to read in its entirety as follows:

                  8.2.9 CAPITAL EXPENDITURES. MAKE CAPITAL EXPENDITURES
         (INCLUDING, BY WAY OF CAPITALIZED LEASE OBLIGATIONS) WHICH, IN THE
         AGGREGATE, AS TO HOLDINGS AND ITS SUBSIDIARIES, ON A CONSOLIDATED
         BASIS, EXCEED, IN THE AGGREGATE, (I) $2,600,000 DURING THE CALENDAR
         YEAR ENDING ON DECEMBER 31, 2001, OR (II) $3,000,000.00 DURING ANY
         CALENDAR YEAR ENDING ON OR AFTER DECEMBER 31, 2002.

         1.5 COMMITMENTS. As of the Eighth Amendment Effective Date, each
Lender's Term Loan Commitment, Acquisition Loan Commitment, Revolving Credit
Loan Commitment, Term Loan Percentage, Acquisition Loan Percentage and Revolving
Credit Percentage shall be as set forth below such Lender's name on the
signature pages of this Eighth Amendment.

         1.6 AMENDMENT TO EXHIBITS. Exhibits A, A-1, B, D, E, F, G, H, I, J, K,
L, M, N, R, S, T, U, V, W and X to the Loan Agreement shall be amended in their
entirety by substituting Exhibits A, A-1, B, D, E, F, G, H, I, J, K, L, M, N, R,
S, T, U, V, W and X each of which is attached hereto as Exhibit A, Exhibit A-1,
Exhibit B, Exhibit D, Exhibit E, Exhibit F, Exhibit G, Exhibit H, Exhibit I,
Exhibit J, Exhibit K, Exhibit L, Exhibit M, Exhibit N, Exhibit R, Exhibit S,
Exhibit T, Exhibit U, Exhibit V, Exhibit W and Exhibit X respectively.

         SECTION 2. WAIVER. Effective as of the Eighth Amendment Effective Date,
Agent and Lenders hereby waive the Existing Events of Default. Borrowers
acknowledge and agree that the foregoing waiver is limited solely to the matters
expressly set forth herein and for the period of time set forth herein. Nothing
contained in the waiver set forth herein shall obligate Agent and Lenders to
grant any additional or future waiver pursuant to SECTION 8.2.9 of the Loan
Agreement or any other provision of the Loan Agreement or any other Loan
Document.

         SECTION 3. CONDITIONS PRECEDENT TO EFFECTIVENESS OF AMENDMENTS. The
amendments to the Loan Agreement contained in SECTION 1 of this Eighth Amendment
shall be effective only upon the satisfaction of each of the conditions set

                                       3
<PAGE>

forth in this SECTION 3. If each condition set forth in this SECTION 3 has not
been satisfied by February 25, 2002, this Eighth Amendment and all obligations
of Lenders contained herein shall, at the option of Lenders, terminate.

         3.1 DOCUMENTATION. Agent and Lenders shall have received, in form and
substance acceptable to Agent and Lenders and their counsel a duly executed copy
of this Eighth Amendment. Each Lender shall have received, in form and substance
acceptable to Agent and Lenders and their counsel a duly executed original of
(i) a Revolving Credit Note in favor of such Lender in the amount of such
Lender's Revolving Credit Percentage in the form of Exhibit A attached hereto,
and (ii) a Term Note in favor of such Lender in the amount of such Lender's Term
Loan Percentage in the form of Exhibit A-1 attached hereto, and any other
documents, instruments and certificates as Agent and Lenders and their counsel
shall require in connection therewith prior to the date hereof, all in form and
substance satisfactory to Agent and Lenders and their counsel.

         3.2 2007 SUBORDINATED DEBT DOCUMENTS. ING and SunTrust shall have
consented to the amendments set forth in the Eighth Amendment to Loan and
Security Agreement and Waiver and amended the 2007 Subordinated Debt Documents
in a manner and on terms and conditions satisfactory to the Agent and Lenders.

         3.3 CORPORATE EXISTENCE AND AUTHORITY. Agent and Lenders shall have
received such resolutions, certificates and other documents as Agent and Lenders
shall request relative to the authorization, execution and delivery by each Loan
Party of this Eighth Amendment, including, but not limited to the following:

                  1.       Company General Certificate for Holdings and each of
                           Holdings Subsidiaries;

                  2.       Copy of Resolutions of Holdings and each of Holdings
                           Subsidiaries, authorizing the execution of the Eighth
                           Amendment and the increase in the Revolving Credit
                           Loan Commitment and the Term Loan Commitment; and

                  3.       Good Standing Certificates for Holdings and each of
                           Holdings Subsidiaries from their respective states of
                           incorporation; provided, however, that Borrower
                           shall, within 45 days hereof, provide to Agent a Good
                           Standing Certificate for Ramsay Youth Services Puerto
                           Rico, Inc.

         3.4 NO DEFAULT. No Default or Event of Default (other than the Existing
Events of Default) shall exist.

         3.5 NO LITIGATION. No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, or which is related to or arises out of this
Eighth Amendment, the Loan Agreement or the consummation of the transactions
contemplated hereby.

                                       4
<PAGE>

         3.6 FEE. Borrowers shall have paid to Agent an amendment fee of
$50,000.00.

         SECTION 4. REPRESENTATIONS AND WARRANTIES OF BORROWERS. To induce Agent
and Lenders to enter into this Eighth Amendment, each Borrower hereby represents
and warrants to Agent and Lenders as follows:

         4.1 REAFFIRMATION OF REPRESENTATIONS AND WARRANTIES. Each
representation and warranty of any Loan Party contained in the Loan Agreement
and the other Loan Documents, as amended hereby, is true and correct on the date
hereof and will be true and correct after giving effect to (i) the amendments
set forth in SECTION 1 hereof, (ii) the Managed Care Merger and (iii) the Ramsay
Treatment Name Change.

         4.2 MANAGED CARE MERGER. Attached hereto as Exhibit 1 are true and
correct copies of the Certificate of Merger and the Agreement and Plan of Merger
Merging Ramsay Louisiana, Inc., Ramsay Hospital Corporation of Louisiana, Inc.
and Bethany Psychiatric Hospital, Inc. with and into Ramsay Managed Care, Inc.

         4.3 RAMSAY TREATMENT NAME CHANGE. Attached hereto as Exhibit 2 are true
and correct copies of all documents evidencing the Ramsay Treatment Name Change.

         4.4 NO OUTSTANDING JUNIOR SUBORDINATED DEBT OR PREFERRED STOCK. As of
the date hereof, there is no outstanding Indebtedness with respect to the Junior
Subordinated Debt Documents and no Preferred Stock is outstanding.

         4.5 CORPORATE AUTHORITY; NO CONFLICTS. The execution, delivery and
performance by each Borrower of this Eighth Amendment and all documents,
instruments and agreements contemplated herein are within each Borrower's
respective corporate powers, have been duly authorized by necessary action,
require no action by or in respect of, or filing with, any court or agency of
government and do not violate or constitute a default under any provision of
applicable Law or any material agreement binding upon any Loan Party or result
in the creation or imposition of any Lien upon any of the assets of any Loan
Party except as permitted in the Loan Agreement, as amended hereby.

         4.6 ENFORCEABILITY. This Eighth Amendment constitutes the valid and
binding obligation of each of the Borrowers enforceable in accordance with its
terms, except as (i) the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors' rights generally, and (ii) the
availability of equitable remedies may be limited by equitable principles of
general application.

         4.7 NO DEFENSES. No Loan Party has any defenses to payment,
counterclaims or rights of set off with respect to the Obligations.

         SECTION 5. MISCELLANEOUS.

         5.1 REAFFIRMATION OF LOAN DOCUMENTS; EXTENSION OF LIENS. Any and all of
the terms and provisions of the Loan Agreement and the Loan Documents shall,
except as amended and modified hereby, remain in full force and effect.
Borrowers hereby extend the Liens securing the Obligations until the Obligations

                                       5
<PAGE>

have been paid in full, and agree that the amendments and modifications herein
contained shall in no manner affect or impair the Obligations or the Liens
securing the payment and performance thereof.

         5.2 PARTIES IN INTEREST. All of the terms and provisions of this Eighth
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

         5.3 LEGAL EXPENSES. The Borrowers hereby agree to pay promptly
following receipt of an invoice detailing all reasonable fees and expenses of
counsel to Agent and Lenders incurred by Agent or any Lender, in connection with
the preparation, negotiation and execution of this Eighth Amendment and all
related documents.

         5.4 COUNTERPARTS. This Eighth Amendment may be executed in
counterparts, and all parties need not execute the same counterpart. However, no
party shall be bound by this Eighth Amendment until all parties have executed a
counterpart. Facsimiles shall be effective as originals.

         5.5 COMPLETE AGREEMENT. THIS EIGHTH AMENDMENT, THE LOAN AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         5.6 HEADINGS. The headings, captions and arrangements used in this
Eighth Amendment are, unless specified otherwise, for convenience only and shall
not be deemed to limit, amplify or modify the terms of this Eighth Amendment,
nor affect the meaning thereof.

                            (SIGNATURE PAGES FOLLOW)

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Eighth
Amendment to be duly executed by their respective authorized officers on the
date and year first above written.

BORROWERS:

RAMSAY YOUTH SERVICES, INC.

By:
   --------------------------------------------------
         Luis E. Lamela
         President and Chief Executive Officer

BOUNTIFUL PSYCHIATRIC HOSPITAL, INC.
EAST CAROLINA PSYCHIATRIC SERVICES CORPORATION
GREAT PLAINS HOSPITAL, INC.
GULF COAST TREATMENT CENTER, INC.
HAVENWYCK HOSPITAL, INC.
H. C. CORPORATION
HSA HILL CREST CORPORATION
HSA OF OKLAHOMA, INC.
MICHIGAN PSYCHIATRIC SERVICES, INC.
RAMSAY TREATMENT SERVICES, INC. f/k/a RAMSAY EDUCATIONAL SERVICES, INC.
RAMSAY MANAGED CARE, INC.
RAMSAY YOUTH SERVICES OF ALABAMA, INC.
RAMSAY YOUTH SERVICES OF FLORIDA, INC.
RAMSAY YOUTH SERVICES OF SOUTH CAROLINA, INC.
RHCI SAN ANTONIO, INC.
TRANSITIONAL CARE VENTURES, INC.
TRANSITIONAL CARE VENTURES (TEXAS), INC.

By:
   --------------------------------------------------
         Luis E. Lamela
         Vice President

H. C. PARTNERSHIP
By:  H.C. CORPORATION, General Partner
By:  HSA HILL CREST CORPORATION, General Partner

       By:
          -------------------------------------------
                  Luis E. Lamela
                  Vice President

                                       7
<PAGE>

AGENT AND LENDERS:

FLEET CAPITAL CORPORATION
("Agent" and a "Lender")

By:
   --------------------------------------------------
       Dennis M. Hansen
       Senior Vice President

Revolving Credit Loan Commitment:          $15,000,000.00
Revolving Credit Percentage:                          100%
Term Loan Commitment:                       $9,154,682.00
Term Loan Percentage:                                 100%
Acquisition Loan Commitment:                $1,797,279.42
Acquisition Loan Percentage:                          100%

                                       8
<PAGE>

                            CONSENT AND REAFFIRMATION

       The undersigned (each a "GUARANTOR") hereby (i) acknowledges receipt of a
copy of the foregoing Eighth Amendment to Loan and Security Agreement and Waiver
(the "EIGHTH AMENDMENT"); (ii) consents to Borrowers' execution and delivery
thereof; (iii) agrees to be bound thereby; and (iv) affirms that nothing
contained therein shall modify in any respect whatsoever its guaranty of the
obligations of the Borrowers to Lenders pursuant to the terms of its Guaranty in
favor of Agent and the Lenders (the "GUARANTY") and reaffirms that the Guaranty
is and shall continue to remain in full force and effect. Although Guarantor has
been informed of the matters set forth herein and has acknowledged and agreed to
same, Guarantor understands that the Lenders have no obligation to inform
Guarantor of such matters in the future or to seek Guarantor's acknowledgment or
agreement to future amendments or waivers, and nothing herein shall create such
duty.

       IN WITNESS WHEREOF, the undersigned has executed this Consent and
Reaffirmation on and as of the date of the Eighth Amendment.

GUARANTOR:

RAMSAY YOUTH SERVICES PUERTO RICO, INC.

By:
   --------------------------------------------------
       Luis E. Lamela
       Vice President

<PAGE>

                                    Exhibit A
                              REVOLVING CREDIT NOTE

$__________________                                          __________________

                                                             __________________

         FOR VALUE RECEIVED, each of the undersigned, jointly and severally,
(hereinafter collectively referred to as "Borrowers", and each individually, a
"Borrower"), hereby PROMISES TO PAY to the order of _______________, a
_________________ corporation ("Lender"), or its registered assigns, at the
office of Fleet Capital Corporation, as agent for such Lender, or at such other
place in the United States of America as the holder of this Revolving Credit
Note (this "Note") may designate from time to time in writing, in lawful money
of the United States of America and in immediately available funds, the
principal amount of ___________ DOLLARS ($ ___), or such lesser principal amount
as may be outstanding pursuant to the Loan Agreement (as hereinafter defined)
with respect to the Revolving Credit Loans, together with interest on the unpaid
principal amount of this Note outstanding from time to time.

         This Note is one of the Revolving Credit Notes referred to in, and
issued pursuant to, that certain Loan and Security Agreement dated as of October
30, 1998, by and among Borrowers, the Lender signatories thereto (including
Lender) and Fleet Capital Corporation ("FCC"), as agent for such Lender (FCC in
such capacity "Agent") (as amended from time to time, the "Loan Agreement"), and
is entitled to all of the benefits and security of the Loan Agreement. All of
the terms, covenants and conditions of the Loan Agreement and the Security
Documents are hereby made a part of this Note and are deemed incorporated herein
in full. All capitalized terms herein, unless otherwise defined, unless
otherwise specifically defined in this Note, shall have the meanings ascribed to
them in the Loan Agreement.

         The principal amount of the indebtedness evidenced hereby shall be
payable in the amounts and on the dates specified in the Loan Agreement and, if
not sooner paid in full, on the Commitment Termination Date, unless the term
hereof is extended in accordance with the Loan Agreement. Interest thereon shall
be paid until such principal amount is paid in full at such interest rates and
at such times as are specified in the Loan Agreement.

         Upon and after the occurrence, and during the continuation, of an Event
of Default, this Note shall or may, as provided in the Loan Agreement, become or
be declared immediately due and payable.

         The right to receive principal of, and stated interest on, this Note
may only be transferred in accordance with the provisions of the Loan Agreement.

         Demand, presentment, protest and notice of nonpayment and protest are
hereby waived by each Borrower.

         This Note amends, modifies, increases and restates, but does not
extinguish, the indebtedness evidenced by that certain Revolving Credit Note of
Borrowers dated February 12, 2002, payable to the order of Fleet Capital
Corporation in the original principal amount of $12,000,000.00.

         This Note shall be interpreted, governed by, and construed in
accordance with, the internal laws of the State of Texas.

<PAGE>

RAMSAY YOUTH SERVICES, INC.

By:
         --------------------------------------------

Name:
         --------------------------------------------

Title:
         --------------------------------------------

BOUNTIFUL PSYCHIATRIC HOSPITAL, INC.
EAST CAROLINA PSYCHIATRIC SERVICES CORPORATION
GREAT PLAINS HOSPITAL, INC.
GULF COAST TREATMENT CENTER, INC.
HAVENWYCK HOSPITAL, INC.
H. C. CORPORATION
HSA HILL CREST CORPORATION
HSA OF OKLAHOMA, INC.
MICHIGAN PSYCHIATRIC SERVICES, INC.
RAMSAY TREATMENT SERVICES, INC. f/k/a RAMSAY EDUCATIONAL SERVICES, INC.
RAMSAY MANAGED CARE, INC.
RAMSAY YOUTH SERVICES OF ALABAMA, INC.
RAMSAY YOUTH SERVICES OF FLORIDA, INC.
RAMSAY YOUTH SERVICES OF SOUTH CAROLINA, INC.
RHCI SAN ANTONIO, INC.
TRANSITIONAL CARE VENTURES, INC.
TRANSITIONAL CARE VENTURES (TEXAS), INC.

By:
         --------------------------------------------

Name:
         --------------------------------------------

Title:
         --------------------------------------------

H. C. PARTNERSHIP
By:  H.C. CORPORATION, General Partner
By:  HSA HILL CREST CORPORATION, General Partner

         By:
                  --------------------------------------------

         Name:
                  --------------------------------------------

         Title:
                  --------------------------------------------

<PAGE>

                                   EXHIBIT A-1

                             SECURED PROMISSORY NOTE

                                   (Term Note)

$_____________                                              February [__], 2002
                                                                  Dallas, Texas

         FOR VALUE RECEIVED, each of the undersigned, jointly and severally,
(hereinafter collectively referred to as "BORROWER", and each individually, a
"BORROWER"), hereby promises to pay to the order of ________________________, a
________corporation (hereinafter "Lender"), or its registered assigns at the
office of Fleet Capital Corporation, as agent for such Lender, or at such other
place in the United States of America as the holder of this Note may designate
from time to time in writing, in lawful money of the United States, in
immediately available funds, at the time of payment, the principal sum of
_________________Dollars ($________), together with interest from and after the
date hereof on the unpaid principal balance outstanding from time to time.

         This Secured Promissory Note (the "Note") is one of the Term Notes
referred to in, and is issued pursuant to, that certain Loan and Security
Agreement dated as of October 30, 1998, by and among Borrowers, the Lender
signatories thereto (including Lender) and Fleet Capital Corporation ("FCC") as
Agent for said Lender (FCC in such capacity, "Agent") (hereinafter, as amended
from time to time, the "Loan Agreement"), and is entitled to all of the benefits
and security of the Loan Agreement. All of the terms, covenants and conditions
of the Loan Agreement and the Security Documents are hereby made a part of this
Note and are deemed incorporated herein in full. All capitalized terms used
herein, unless otherwise specifically defined in this Note, shall have the
meanings ascribed to them in the Loan Agreement.

         For so long as no Event of Default shall have occurred and be
continuing the principal amount and accrued interest of this Note shall be due
and payable on the dates and in the manner hereinafter set forth:

         (a) Interest on the unpaid principal balance outstanding from time to
       time shall be paid at such interest rates and at such times as are
       specified in the Loan Agreement;

         (b) Principal shall be due and payable monthly on the first day of each
       month during the periods set forth below in the amounts set forth
       opposite such periods:

                  DATE                               SCHEDULED INSTALLMENT
                  ----                               ---------------------

                  March 1, 2002 through                     $239,583
                    October 31, 2002

                  November 1, 2002 through                  $302,083
                    October 30, 2003

         (c) The entire remaining principal amount then outstanding, together
       with any and all other amounts due hereunder, shall be due and payable on
       the Commitment Termination Date.

<PAGE>

Notwithstanding the foregoing, the entire unpaid principal balance and accrued
interest on this Note shall be due and payable immediately upon any termination
of the Loan Agreement pursuant to Section 4 thereof.

         This Note shall be subject to mandatory prepayment in accordance with
the provision of Section 3.3 of the Loan Agreement. Borrowers may also prepay
this Note in the manner provided in Section 4 of the Loan Agreement.

         Upon the occurrence, and during the continuation, of an Event of
Default, this Note shall or may, as provided in the Loan Agreement, become or be
declared immediately due and payable.

         The right to receive principal of, and stated interest on, this Note
may only be transferred in accordance with the provisions of the Loan Agreement.

         Demand, presentment, protest and notice of nonpayment and protest are
hereby waived by each Borrower.

         This Note amends, modifies, and restates, but does not extinguish, the
indebtedness evidenced by that certain Secured Promissory Note (Term Note) of
Borrowers dated February 12, 2002, payable to the order of Fleet Capital
Corporation in the original principal amount of $7,654,682.00.

       This Note shall be governed by, and construed and enforced in accordance
with, the laws of the State of Texas.

<PAGE>

RAMSAY YOUTH SERVICES, INC.

By:
       -------------------------------------

Name:
       -------------------------------------

Title:
       -------------------------------------

BOUNTIFUL PSYCHIATRIC HOSPITAL, INC.
EAST CAROLINA PSYCHIATRIC SERVICES CORPORATION
GREAT PLAINS HOSPITAL, INC.
GULF COAST TREATMENT CENTER, INC.
HAVENWYCK HOSPITAL, INC.
H. C. CORPORATION
HSA HILL CREST CORPORATION
HSA OF OKLAHOMA, INC.
MICHIGAN PSYCHIATRIC SERVICES, INC.
RAMSAY TREATMENT SERVICES, INC. f/k/a RAMSAY EDUCATIONAL SERVICES, INC.
RAMSAY MANAGED CARE, INC.
RAMSAY YOUTH SERVICES OF ALABAMA, INC.
RAMSAY YOUTH SERVICES OF FLORIDA, INC.
RAMSAY YOUTH SERVICES OF SOUTH CAROLINA, INC.
RHCI SAN ANTONIO, INC.
TRANSITIONAL CARE VENTURES, INC.
TRANSITIONAL CARE VENTURES (TEXAS), INC.

By:
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Name:
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Title:
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H. C. PARTNERSHIP
By:  H.C. CORPORATION, General Partner
By:  HSA HILL CREST CORPORATION, General Partner

       By:
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       Name:
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       Title:
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                                                                  EXHIBIT 10.124

                  TERMINATION, ASSIGNMENT AND RELEASE AGREEMENT

         This TERMINATION, ASSIGNMENT AND RELEASE AGREEMENT ("Agreement") is
dated as of the 30th day of September, 2001 and is by and among (i) COUNSEL
NURSING PROPERTIES, INC., a Delaware corporation ("CNP") and COUNSEL CORPORATION
[US], a Delaware corporation ("CC[US]") and the successor by name change to
Diversicare Corporation of America ("DCA"), (ii) DIVERSICARE LEASING CORP., a
Tennessee corporation ("DLC") and ADVOCAT INC., a Delaware corporation
("Advocat"), and (iii) OMEGA HEALTHCARE INVESTORS, INC., a Maryland corporation
("Omega"), OHI SUNSHINE, INC., a Florida corporation ("OHI"), and STERLING
ACQUISITION CORP., a Kentucky corporation ("Sterling").

                                  R E C I T A L S:

         A. Pursuant to that certain Master Lease dated as of August 14, 1992
between DCA and Omega (the "Master Lease") DCA leased from Omega nineteen (19)
licensed nursing facilities located in the states of Tennessee, Arkansas and
Alabama.

         B. CNP is the owner of three (3) parcels of real property located in
the State of Florida in the counties of DeSoto, Hardee and Lake, respectively,
and more particularly described in Exhibit "A" attached hereto and incorporated
herein by reference, each one of which has been improved with one (1) or more
buildings and related improvements for the operation of a licensed nursing home
facility or adult care center known, respectively, as DeSoto Manor Nursing
Center, Hardee Manor Care Center and Leesburg Nursing Center (each such property
herein a "Mortgaged Facility" and collectively the "Mortgaged Facilities").

         C. Pursuant to that certain Florida Loan Agreement dated as of August
14, 1992, as amended by that certain First Amendment to Florida Loan Agreement
dated as of August 17, 1993, and as further amended by that certain Consent,
Assignment and Amendment Agreement (the "Consent, Assignment and Amendment
Agreement") dated May 10, 1994 by and among DCA, CNP, Advocat, DLC, and Omega
(as so amended, the "Loan Agreement"), CNP obtained a first mortgage loan in the
amount of Seven Million Thirty-One Thousand Two Hundred Fifty and No/100 Dollars
($7,031,250.00) (the "Mortgage Loan") from Omega.

         D. The Mortgage Loan is evidenced by that certain Mortgage Note dated
as of August 14, 1992 made by CNP and payable to Omega, as amended and restated
by that certain Amended and Restated Mortgage Note dated as of August 14, 1993
(as so amended and restated, the "Mortgage Note").

         E. The Mortgage Loan is guaranteed by CC[US], as the successor by name
change to DCA, pursuant to that certain Guaranty Agreement made by DCA in favor
of Omega and dated as of August 14, 1992 (the "CC[US] Guaranty") and is secured
by certain instruments, including, but not limited to, (i) that certain Mortgage
and Security Agreement and Fixture Filing made and executed by CNP in favor of
Omega on August 11, 1992 and recorded in each of DeSoto, Hardee and Lake County,
Florida (the "Mortgage") and (ii) that certain Security Agreement made by CNP in
favor of Omega dated as of August 14, 1992 and related UCC-1 Financing
Statements (together, the "CNP

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Security Instruments"), and (iii) the deposit requirements of that certain
Letter of Credit Agreement dated as of August 14, 1992 by and between Omega and
DCA (the "Letter of Credit Agreement").

         F. CNP leased the Mortgaged Facilities to DLC pursuant to the terms and
conditions of that certain Florida Lease Agreement dated as of May 10, 1994 (the
"Florida Lease"), which Florida Lease was made with the consent and approval of
Omega.

         G. Pursuant to terms of the Florida Lease, and that certain Assignment
and Assumption Agreement dated as of May 10, 1994 (the " Assumption Agreement"),
DLC assumed the payment and performance of the debts, liabilities and
obligations of CNP under the Loan Agreement, the Mortgage Note, the Mortgage,
and the CNP Security Instruments and agreed to make rental payments under the
Florida Lease at such times and in such amounts as would satisfy the payments
due under the Mortgage Note. Simultaneously with the making of the Florida Lease
and the Assumption Agreement, Advocat executed and delivered a Guaranty in favor
of Omega dated May 10, 1994 (the "Advocat Guaranty") pursuant to which Advocat
guaranteed the payment and performance of the obligations of DLC under the
Florida Lease. DLC has further executed a certain UCC-3 Financing Statement (the
"DLC Financing Statement") for filing in the State of Florida to evidence the
assumption by DLC of the obligations of CNP under the CNP Security Instruments
and to reflect DLC as the assignee of the debtor on the related UCC-1 Financing
Statements that are a part of the CNP Security Instruments.

         H. Pursuant to the terms of the Consent, Assignment and Amendment
Agreement, DCA assigned its interest in the Master Lease and certain related
documents listed in Exhibit "A" to the Consent, Assignment and Amendment
Agreement (collectively, the "Master Lease Documents") to CNP; CNP accepted such
assignment and immediately assigned all of its interest in the Master Lease
Documents to DLC. Pursuant to the terms of the Consent, Assignment and Amendment
Agreement, DLC accepted such assignment and assumed the obligations of DCA under
the Master Lease Documents. Such assignments were made without release of DCA.
Pursuant to the Consent, Assignment and Amendment Agreement, DCA remained
primarily liable for the payment and performance of all obligations under the
Master Lease Documents and DCA specifically confirmed and ratified (i) its
guaranties of each of the Florida Loan Obligations (as defined below); and (ii)
its liabilities under the Master Lease (the "Master Lease Obligations").

         I. CNP and DLC have elected to terminate the Florida Lease as between
themselves, and, pursuant to Article 4 of the Florida Lease and Section 7 of the
Mortgage Note, have elected to have CNP convey the Mortgaged Facilities and all
Personal Property (as defined in the Florida Lease) located at the Mortgaged
Facilities to OHI and Sterling, in full satisfaction of the Mortgage Loan and,
by this document, the parties wish to evidence the termination of the Florida
Lease between CNP and DLC and the release and discharge of CNP, CC[US], Advocat,
and DLC of their respective debts, obligations and liabilities in respect to the
Florida Loan and, except as hereinafter specifically provided with respect to
Leesburg Nursing Center, the Florida Lease, and the release and discharge of
CC[US] and DLC of their respective debts, obligations and liabilities in respect
of the Master Lease Documents.

         NOW, THEREFORE, in consideration of the foregoing premises, the
conveyance of the Mortgaged Facilities and Personal Property to Omega, and for
other good and valuable

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consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         1.1 Definitions. For purposes of this Agreement, except as otherwise
expressly provided or unless the context requires otherwise, (i) the terms
defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular and (ii) all capitalized terms used
herein and not otherwise defined herein have the meanings assigned to them in
accordance with the Florida Loan Documents or the Florida Lease Documents, as
hereinafter defined.

         "Advocat Guaranty" shall mean and refer to that certain Advocat, Inc.
Guaranty dated May 10, 1994 made by Advocat in favor of Omega, and any
modifications, renewals or extensions thereof or thereto.

         "Assumption Agreement" shall mean and refer to that certain Assignment
and Assumption Agreement (Omega Financing) dated as of May 10, 1994 made by and
among Counsel Healthcare Assets, Inc., an Ontario corporation, CNP and DCA, as
Assignors, and DLC, as Assignee, and any modifications, renewals or extensions
thereof or thereto.

         "CC[US] Guaranty" shall mean and refer to that certain Guaranty
Agreement dated as of August 14, 1992 made by DCA in favor of Omega, and any
modifications, renewals or extensions thereof or thereto.

         "Collateral Assignment" shall mean and refer to that certain Collateral
Assignment of Warranties, Guarantees and Sureties dated August 14, 1992 made by
CNP and assigning to Omega as collateral security for the Mortgage Loan all of
CNP's rights in any warranties, guaranties or sureties relating to the Mortgaged
Facilities, and any extensions, renewals or modifications thereof or thereto.

         "Consent, Assignment and Amendment Agreement" shall mean and refer to
that certain Consent, Assignment and Amendment Agreement dated May 14, 1994 by
and among DCA, CNP, Advocat, DLC and Omega, and any extensions, renewals or
modifications thereof or thereto.

         "CNP Security Instruments" shall mean and refer to that certain
Security Agreement securing payments and performance of the Mortgage Loan made
by CNP in favor of Omega dated as of August 14, 1992 and related UCC-1 Financing
Statements, and any modifications, renewals and extensions thereof or thereto.

         "DLC Financing Statement" shall mean and refer to the UCC-3 Financing
Statement filed in the State of Florida with respect to the Mortgaged Facilities
to evidence DLC as the assignee of CNP as the debtor there under, and any
modifications, renewals and extensions thereof or thereto.

         "Florida Lease Documents" shall mean and refer to, collectively, the
Florida Lease and all documents, instruments, certificates and financing
statements required or permitted there under.

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         "Florida Loan Documents" shall mean and refer to the Loan Agreement,
the Mortgage Note, the Mortgage, the CNP Security Instruments, the DLC Financing
Statement, the Collateral Assignment, the Letter of Credit Agreement and all
documents, instruments, certificates and financing statements required or
permitted there under.

         "Florida Loan Obligations" shall mean and refer to the obligations of
CNP and DLC to Omega under the Florida Lease Loan Documents.

         "Letter of Credit Agreement" shall mean and refer to that certain
Letter of Credit Agreement dated as of August 14, 1992 by and between Omega and
DCA with DCA providing for a letter of credit in full or partial satisfaction of
the performance deposit obligations of CNP under the Loan Agreement, and any
extensions, renewals or modifications thereof or thereto.

         "Loan Agreement" shall mean and refer to that certain Florida Loan
Agreement dated as of August 14, 1992, as amended by that certain First
Amendment to Florida Loan Agreement dated as of August 17, 1993, and as further
amended by that certain Consent, Assignment and Amendment Agreement dated May
10, 1994 by and among DCA, CNP, Advocat, DLC, and Omega, pursuant to which CNP
obtained the Mortgage Loan from Omega.

         "Master Lease" shall mean and refer to that certain Master Lease dated
August 14, 1992 between DCA and Omega, as assigned by DCA to CNP, and as further
assigned by CNP to DLC, such assignments having been made pursuant to the terms
of the Consent, Assignment and Amendment Agreement.

         "Master Lease Documents" shall mean and refer to, collectively, the
Master Lease and those other documents enumerated in Exhibit "A" to the Consent,
Assignment and Amendment Agreement, namely, the Agreement of Acquisition and the
Lease by and among Omega and DCA, the Security Agreement made by DCA in favor of
Omega, the Letter of Credit Agreement and the Security Agreement made by DLC in
favor of Omega.

         "Master Lease Obligations" shall mean and refer to, collectively, the
obligations of CC[US] and DLC under the Master Lease Documents.

         "Mortgage" shall mean and refer to that certain Mortgage and Security
Agreement and Fixture Filing executed and delivered by CNP on August 11, 1992 in
favor of Omega to secure the Mortgage Loan and recorded as an encumbrance
against the Mortgaged Facilities in each of DeSoto, Hardee and Lake County,
Florida, and any modifications, renewals and extensions thereof or thereto.

         "Mortgage Loan" shall mean and refer to that certain mortgage loan in
the original principal amount of $7,031,250.00 made by Omega to CNP and
evidenced and secured by the Loan Documents, and any renewals or extensions
thereof.

         "Mortgage Note" shall mean and refer to that certain Mortgage Note in
the original principal amount of Seven Million Thirty-One Thousand Two Hundred
Fifty and No/100 Dollars ($7,031,250.00) dated as of August 14, 1992 made by CNP
and payable to Omega, as amended and restated by that certain Amended and
Restated Mortgage Note dated as of August 14, 1993, and any modifications,
extensions and renewals thereof or thereto.

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         "Mortgaged Facility" or "Mortgaged Facilities" shall mean and refer to,
individually or collectively, as the case may be, the nursing home or adult care
facilities owned by CNP and located in the counties of DeSoto, Hardee and Lake,
respectively, in the State of Florida that are the subject of the Florida Lease
and the Mortgage Loan.

                                    ARTICLE 2
                   TERMINATION AND ASSIGNMENT OF FLORIDA LEASE

         2.1 Termination of Lease as to Certain Facilities. The Florida Lease
shall be and is hereby canceled and terminated, and all of its terms and
conditions shall be and are hereby deemed to be of no further force and effect,
with respect to each of the Mortgaged Facilities known as Hardee Manor Care
Center (the "Hardee Facility") and DeSoto Manor Nursing Center (the "DeSoto
Facility") as of the ____ day of September, 2001 (the "Lease Termination Date").
From and after the Lease Termination Date, each of the parcels of real property
located in the State of Florida in the counties of DeSoto and Hardee and more
particularly described on Exhibit A attached hereto, and the nursing home
facilities located thereon, shall no longer be subject to the terms and
conditions of the Florida Lease. As of the Lease Termination Date, each of CNP
and DLC shall be and hereby is released in full from each and all of their
respective covenants, agreements, duties, responsibilities, liabilities and
obligations under the Florida Lease as to the Hardee Facility and the DeSoto
Facility, and CNP and DLC each hereby releases and forever discharges the other
from any claims or demands that either of them now has or may have against the
other with respect to either of such Mortgaged Facilities under the Florida
Lease.

         2.2 Memorandum of Termination. Concurrently herewith, CNP and DLC shall
execute and deliver to Omega, in recordable form, a memorandum of this Agreement
or other appropriate instrument evidencing the termination of the Florida Lease
as to each of the Hardee Facility and the DeSoto Facility for recording in the
real estate records of the counties in which each of such Mortgaged Facilities
is located.

         2.3 Assignment of Lease as to Leesburg Facility. The Florida Lease
shall remain in effect with respect to the Mortgaged Facility known as Leesburg
Nursing Center (the "Leesburg Facility") from and after the date hereof. By deed
and bill of sale made concurrently herewith, CNP has conveyed to OHI the real
property described on Exhibit A attached hereto located in Lake County, Florida
and the improvements and other assets comprising the Leesburg Facility.
Effective as of the date hereof, CNP hereby transfers, conveys, assigns, and
sets over to OHI all of the right, title and interest of CNP as Lessor in, to
and under the Florida Lease with respect to the Leesburg Facility. OHI does
hereby assume and agree to perform, keep and observe all of the duties and
obligations to be performed, kept, observed and discharged by the Lessor under
the Florida Lease with respect to the Leesburg Facility from and after the date
hereof. From and after the date hereof, all references to "Lessor" in the
Florida Lease shall be deemed to mean and refer to OHI. DLC does hereby attorn
to and recognize OHI as the Lessor under the Florida Lease with respect to the
Leesburg Facility from and after the date hereof. OHI does hereby recognize DLC
as the Lessee under the Florida Lease with respect to the Leesburg Facility and
acknowledges and agrees that, subject to the observance and performance of the
duties, responsibilities and obligations of the Lessee under the Florida Lease
with respect to the Leesburg Facility, DLC shall continue to have and enjoy all
the rights of the Lessee to hold, occupy, use and enjoy the Leesburg Facility
during the

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remainder of the term of the Florida Lease (subject to Sections 2.5 and 2.6.
hereof). Effective as of the date hereof, CNP shall be and hereby is released in
full from each and all of its respective covenants, agreements, duties,
responsibilities, liabilities and obligations under the Florida Lease with
respect to the Leesburg Facility and CNP and DLC each hereby releases and
forever discharges the other from any claims or demands that either of them now
has or may have against the other with respect to the Leesburg Facility under
the Florida Lease. OHI and DLC agree that in consideration of the satisfaction
of the Mortgage Note provided for herein, effective as of the date hereof
Section 2.3 of the Florida Lease shall be and hereby is amended to provide that
the Annual Rental due and payable by DLC under the Florida Lease is and shall
hereafter be the sum of One Dollar ($1.00) and that Paragraphs A through D of
Section 2.3 of the Florida Lease providing for certain adjustments to Annual
Rent are hereby deleted and declared to be of no further force and effect.
Annual Rent, as herein provided, shall be due and payable on January 1st of each
year during the remainder of the term of the Florida Lease.

         2.4 Memorandum of Assignment. Concurrently herewith, CNP, OHI and DLC
shall execute and deliver, in recordable form, a memorandum of this Agreement or
other appropriate instrument evidencing the assignment of the Florida Lease with
respect to the Leesburg Facility for recording in the real estate records of the
county in which the Leesburg Facility is located.

         2.5 Termination of Lease as to Leesburg. The Florida Lease shall
continue in effect with respect to the Leesburg Facility until the Commencement
Date of that certain Master Lease between OHI, as Lessor, and LandCastle
Diversified LLC, as Lessee (the "New Lease"), which Commencement Date is
conditioned upon the Florida Department of Human Services approving the change
of ownership application for the Leesburg Facility and the issuance of a license
to operate the Leesburg Facility in favor of Leesburg Health & Rehab L.L.C. (the
"New Operator"). The Florida Lease shall be terminated with respect to the
Leesburg facility and deemed to be of no further force and effect as of the
Commencement Date of the New Lease. As of the Commencement Date of the New
Lease, each of OHI and DLC shall be and hereby is released in full from each and
all of their respective covenants, agreements, duties, responsibilities,
liabilities, and obligations under the Florida Lease with respect to the
Leesburg Facility and OHI and DLC each hereby releases and forever discharges
the other from any claims or demands that either of them has or may have against
the other with respect to the Leesburg Facility under the Florida Lease. On the
Commencement Date of the New Lease, OHI and DLC shall execute and deliver, in
recordable form, a memorandum or other appropriate instrument evidencing the
termination of the Florida Lease with respect to the Leesburg Facility for
recording in the real estate records of the counties in which the Leesburg
Facility is located.

         2.6 Closure of Leesburg Facility. In the event that the Commencement
Date of the New Lease and the transfer of operation of the Leesburg Facility to
the New Operator does not occur on or before January 31, 2002, then Omega, OHI,
DLC and Advocat agree that DLC shall have a period of ninety (90) days after
such date to attempt to sell the Leesburg Facility as an operating nursing home.
DLC shall promptly commence and actively pursue marketing the Leesburg Facility
during said ninety (90) day period. The parties will cooperate with each other
in good faith and use commercially reasonable efforts in attempting to sell the
Leesburg Facility as an operating nursing home. If DLC is unable to accomplish
such sale with in said ninety (90) day period, then Omega, OHI, Advocat and DLC
agree that the Florida Lease shall be terminated, the Leesburg Facility shall

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be closed, and the real estate and other assets comprising the Leesburg Facility
sold as soon as reasonably practical thereafter. Advocat and DLC shall be
responsible for the cost and expense of the closing of the Leesburg Facility.
The proceeds of the sale of the Leesburg Facility as an operating nursing home
or the sale of the real estate and other assets comprising the Leesburg Facility
after its closure shall be shared in accordance with that certain Revenue
Sharing Agreement between Omega, OHI, Advocat and DLC made and executed
concurrently herewith.

         2.7 Facilities Conveyed in As-Is Condition. By deed made and delivered
concurrently herewith, CNP has conveyed the real property and improvements
comprising the Hardee Facility to Sterling and has conveyed the real property
and improvements comprising each of the DeSoto Facility and the Leesburg
Facility to OHI. CNP makes no representations or warranties of any kind,
express, implied, statutory or otherwise, with respect to the condition of the
real property and improvements comprising each of the Hardee Facility, the
DeSoto Facility and the Leesburg Facility, including without limitation any
warranty of habitability, suitability or fitness for any particular use or
purpose or the environmental condition of the property. OHI and Sterling each
agree that the real property and improvements comprising each of the Hardee
Facility, the DeSoto Facility and the Leesburg Facility are being conveyed by
CNP, and Sterling accepts the Hardee Facility, and OHI accepts the DeSoto
Facility and the Leesburg Facility, in "as is" and "where is" condition. The
provisions of this Section 2.7 shall survive the conveyance of each of the
Hardee Facility, the DeSoto Facility and the Leesburg Facility by CNP to
Sterling and OHI.

                                    ARTICLE 3
             SATISFACTION, RELEASE AND DISCHARGE OF LOAN OBLIGATIONS

         3.1 Satisfaction of Mortgage Loan. Omega hereby accepts the transfer
and conveyance of the Mortgaged Facilities and the Personal Property from CNP
made concurrently herewith in full payment and satisfaction of the Mortgage Loan
and all amounts due under the Mortgage Note for principal, interest, the
Participation Factor described therein and all other sums due there under.

         3.2 Omega Release of CNP and CC[US]. Omega does hereby irrevocably and
unconditionally release and forever discharge each of CNP and CC[US], and their
respective directors, officers, successors and assigns (collectively, the
"Indemnified Persons") of and from any and all claims, demands, actions, causes
of action, rights, remedies or suits which Omega ever had, now has or might
hereafter have against either of CNP or CC[US], under, arising out of, relating
to or connected with (i) each and every one of the Florida Loan Documents and
any other documents or instruments evidencing, securing or otherwise relating to
the Mortgage Loan, (ii) CC[US]'s guarantee of the Florida Loan Obligations as
provided in the Consent, Assignment and Amendment Agreement, (iii) the CC[US]
Guaranty, (iv) the Master Lease Documents and (v) the Master Lease Obligations.
Omega agrees that, from and after the date hereof, neither CNP nor CC[US] shall
have any debts, liabilities or obligations to Omega under or in respect of any
of the Florida Loan Documents, the CC[US] Guaranty, the Master Lease Documents,
the Assignment and Assumption Agreement or the Consent, Assignment and Amendment
Agreement.

         3.3 Omega Release of DLC and Advocat. Omega does hereby irrevocably and
unconditionally release and forever discharge each of DLC and Advocat, and their
respective directors, officers, successors and assigns (collectively, the
"Indemnified Persons"), of and from any and all claims, demands, actions, causes
of action, rights, remedies or suits which Omega ever had,

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now has or might have against either of DLC or Advocat, under, arising out of,
relating to, or connected with (i) each and every one of the Florida Loan
Documents (except as specifically provided in Section 3.7 hereof with respect to
the DLC Financing Statement), the Florida Lease Documents (except as
specifically provided in Article 2 hereof with respect to the Leesburg
Facility), the Assumption Agreement and any other documents or instruments
evidencing securing or otherwise relating to the Mortgage Loan and the Florida
Lease, (ii) the Consent, Assignment and Amendment Agreement, (iii) the Master
Lease Documents and (iv) the Advocat Guaranty. Omega agrees that, from and after
the date hereof, neither DLC nor Advocat shall have any debts, liabilities or
obligations to Omega under or in respect of any of the Florida Loan Documents
(except as specifically provided in Section 3.7 hereof with respect to the DLC
Financing Statement), the Florida Lease Documents (except as specifically
provided in Article 2 hereof with respect to the Leesburg Facility), the
Assignment and Assumption Agreement, the Consent, Assignment and Amendment
Agreement, the Master Lease Documents or the Advocat Guaranty. Anything herein
to the contrary notwithstanding, it is understood and agreed that the release by
Omega of Advocat and DLC set forth in this Section 3.3 does not and shall not be
deemed to modify, amend, release or otherwise affect in any manner whatsoever
the liabilities and obligations of DLC and Advocat to Sterling under, arising
out of, relating to, or connected with the Consolidated Amended and Restated
Master Lease dated as of November 8, 2000 by and between Sterling and DLC (the
"Sterling Master Lease"), the Restated and Amended Security Agreement dated as
of November 8, 2000 by and between Sterling and DLC, the Guaranty of Advocat
dated as of November 8, 2000 made by Advocat in favor of Sterling, and any other
agreements, documents or instruments which evidence, secure or otherwise relate
to the liabilities and obligations of DLC or Advocat under or with respect to
the Sterling Master Lease (collectively, the "Sterling Transaction Documents"),
including without limitation the Subordinated Note dated as of November 3, 2000
made by Advocat in favor of Omega (the "Subordinated Note"). DLC and Advocat
each agree that their respective obligations and liabilities under or with
respect to the Sterling Master Lease and the other Sterling Transaction
Documents, including without limitation the Subordinated Note, are not released
or discharged by this Agreement and the same are and shall remain in full force
and effect in accordance with their respective terms.

         3.4 CNP Release of DLC. CNP hereby irrevocably and unconditionally
releases and forever discharges DLC, and its directors, officers, successors and
assigns, of and from (a) any and all liabilities or obligations of DLC to CNP
and (b) any and all claims, demands, actions, causes of action, rights, remedies
or suits which CNP ever had, now has or might hereafter have against DLC, in the
case of each of (a) and (b), under, arising out of, relating to, or connected
with the Florida Loan Documents. CNP hereby agrees that from and after the date
hereof DLC shall not have any obligations to CNP under or in respect of the
Assumption Agreement, the Consent, Assignment and Amendment Agreement or the
Florida Lease in connection with any liabilities or obligations of, or
indebtedness owed by, CNP to Omega under or in respect of any of the Florida
Loan Documents, the Florida Lease Documents or the Master Lease Documents.

         3.5 DLC Release of CNP. DLC hereby irrevocably and unconditionally
releases and forever discharges CNP and its directors, officers, successors and
assigns, of and from (a) any and all liabilities or obligations of CNP to DLC
and (b) any and all claims, demands, actions, causes of action, rights, remedies
or suits which DLC ever had, now has or might hereafter have against CNP, in the
case of each of (a) and (b), under, arising out of, relating to, or connected
with the Florida Loan Documents. DLC hereby agrees that from and after the date
hereof CNP shall not have any obligations to DLC under or in respect of the
Assumption Agreement, the Consent, Assignment and

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Amendment Agreement or the Florida Lease in connection with any liabilities or
obligations of, or indebtedness owed by DLC to Omega under or in respect of any
of the Florida Loan Documents, the Florida Lease Documents or the Master Lease
Documents.

         3.6 Representations and Warranties. Each of the parties hereto hereby
represents and warrants to the other parties that it has full power, authority
and legal right to execute and deliver this Agreement and to keep, observe and
perform all the terms and provisions of this Agreement on its part to be kept,
observed or performed hereunder, and that this Agreement constitutes the legal,
valid and binding obligations of such party enforceable against such party in
accordance with its terms. Each of the parties hereto further hereby represents
and warrants to each of the other parties that it has not heretofore assigned,
transferred or attempted or purported to, and will not, assign or transfer to
any person, firm corporation or other entity any claims against the other
parties hereby released or discharged in this Agreement.

         3.7 Release of Liens and Collateral Security. Omega hereby releases and
discharges in full all liens, mortgages, pledges, charges, security interests
and other encumbrances granted by CNP, DLC and CC[US] in favor of Omega as
security for (i) the obligations of CNP or DLC under the Florida Loan Documents,
(ii) the obligations of CNP or (except as specifically provided herein) DLC
under the Florida Lease Documents, (iii) the obligations of CC[US] under the
CC[US] Guaranty, or (iv) the obligations of CC[US] under the Master Lease
Documents, including without limitation the Mortgage, the CNP Security
Instruments and the DLC Financing Statements. The Collateral Assignment and the
Letter of Credit Agreement are each hereby terminated and declared to be of no
further force and effect. Anything herein to the contrary notwithstanding,
Omega, Advocat and DLC agree that the DLC Financing Statement shall be released
and terminated only as to the DeSoto Facility but shall remain in effect with
respect to the Leesburg Facility and the Hardee Facility to evidence and
continue the perfection of the security interest in the collateral described in
and covered by the DLC Financing Statement located at, used in connection with,
or arising from or in connection with the operation and use by DLC of, the
Hardee Facility and the Leesburg Facility (the "Collateral"). The DLC Financing
Statement shall be released and terminated with respect to the Leesburg Facility
upon termination of the Florida Lease or closure of the Leesburg Facility as
provided in Article 2 hereof. The Hardee Facility has simultaneously herewith
been made a leased property under, and subjected to the terms and provisions of,
the Sterling Master Lease, and the Amended and Restated Security Agreement made
in connection therewith. The DLC Financing Statement shall remain in effect with
respect to the Hardee Facility in accordance with the terms of such Amended and
Restated Security Agreement. DLC hereby acknowledges, confirms and ratifies the
security interest evidenced by the DLC Financing Statement and granted by DLC in
the Collateral as security for (i) with respect to the Hardee Facility, the
Liabilities described in the Amended and Restated Security Agreement and (ii)
with respect to the Leesburg Facility, the continued performance by DLC of its
obligations under the Florida Lease on and after the date hereof. Omega, Advocat
and DLC each agree to prepare, execute, deliver and file any additional UCC-3
Financing Statements necessary or appropriate to reflect the continuation of the
security interest in the Collateral and to otherwise assure that the benefits of
the DLC Financing Statement as to the Hardee Facility and the Leesburg Facility
continue to be realized.

         3.8 Delivery of Documents. Concurrently herewith (i) CNP shall execute
and deliver to Omega appropriate warranty deeds to the Mortgaged Facilities and
bills of sale for the Personal Property located thereon; (ii) Omega shall
execute and deliver to CNP a full release of the lien

                                       14
<PAGE>

evidenced by the Mortgage and shall execute and deliver to CNP and DLC a full
release and termination of the UCC-1 and UCC-3 Financing Statements relating to
the Mortgaged Facilities, the Florida Lease and the security interest of Omega
evidenced thereby; and (iii) Omega shall deliver to CC[US] the executed original
of the Mortgage Note and shall deliver to each of the CNP and Advocat,
respectively, the CNP Guaranty and the Advocat Guaranty. Omega shall clearly
mark each of the Mortgage Note, the CC[US] Guaranty and the Advocat Guaranty to
indicate the satisfaction of the indebtedness and obligations with respect to
the Mortgage Loan and the Florida Lease evidenced thereby and the release and
discharge of CNP, CC[US] and Advocat, respectively, from any further liability
or obligation with respect thereto. In the event that there still exists any
letter of credit outstanding under the Letter of Credit Agreement to satisfy the
Performance Deposit obligations of CNP under the Loan Agreement, Omega shall
return the original of such existing letter of credit to the issuer thereof for
cancellation.

         3.9 Cooperation. At all times following the execution of this
Agreement, each party agrees to cooperate in good faith with the others to
execute and deliver, or cause to be executed and delivered, such documents, and
to do, or cause to be done, such other acts or things as might be necessary or
as might be reasonably requested by any other party to give effect the intent of
this Agreement and assure that the benefits of this Agreement are realized by
each of the parties hereto.

                                    ARTICLE 4
                            MISCELLANEOUS PROVISIONS

         4.1 Amendment; Modification. This Agreement may not be amended or
modified except by a written instrument executed by all of the parties hereto.

         4.2 Notices. Any notice hereunder shall be given in writing and shall
be deemed to have been duly given either personally delivered or mailed,
registered or certified mail, postage prepaid, or by national overnight delivery
service (such as Federal Express or DHL) and properly addressed as follows:

         If to CNP and/or CC[US]:

                  c/o Counsel Corporation
                  Exchange Tower, Suite 1300
                  Two First Canadian Place
                  Toronto, Ontario  M5X 1E3
                  Attention:  Allan C. Silber

         with a copy to:

                  Stikeman Elliott
                  Suite 5300
                  Commerce Court West
                  Toronto, ON M5L 1B9
                  Attention:  Darin Renton

                                       15
<PAGE>

         If to Advocat and/or DLC:

                  Suite 130
                  277 Mallory Station Road
                  Franklin, Tennessee 37067
                  Attention: Dr. Charles Birkett

         with a copy to:

                  Harwell Howard Hyne Gabbert & Manner, P.C.
                  1800 First American Center
                  315 Deaderick Street
                  Nashville, Tennessee 37238
                  Attention: Mark Manner, Esq.

         If to Omega, OHI and/or Sterling:

                  c/o Omega Healthcare Investors, Inc.
                  900 Victors Way, Suite 350
                  Ann Arbor, Michigan 48108
                  Attention: Taylor Pickett

         with a copy to:

                  Dykema Gossett, PLLC
                  39577 Woodward Avenue, Suite 300
                  Bloomfield Hills, MI  48304
                  Attention: Fred J. Fechheimer

or to such other address as any of the foregoing parties may designate. Notice
shall be deemed to have been given on the date of delivery if such delivery is
made on a business day, or, if not, on the first business day after delivery, or
if delivery is refused, on the date delivery was first attempted, provided that
a notice sent by facsimile transmission shall be deemed given upon confirmation
by the sender from recipient that such notice was received.

         4.3 Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of Florida.

         4.4 Multiple Counterparts. This Agreement may be executed
simultaneously in one or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.

         4.5 Captions. The captions of sections and sub-sections of this
Agreement have been inserted solely for convenience and reference, and shall not
control or affect the meaning or construction of any provisions of this
Agreement.

                                       16
<PAGE>

         4.6 Integration; Waivers. This Agreement and all the Exhibits hereto
constitute the entire agreement between the parties pertaining to the subject
matter contained herein and therein and supersede all prior agreements,
representations and understandings of the parties performing to the subject
matter contained herein. No supplement, modification or amendment of this
Agreement shall be binding, unless expressed as such and executed in writing by
all of the parties hereto. No waiver of any provision of this Agreement shall be
deemed to be effective unless in writing and signed by the party to be bound.

         4.7 Binding Effect. This Agreement shall be binding upon and shall
inure to the benefit of each of the parties hereto and their respective legal
representatives, successors and assigns.

                                       17
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the parties as of the date set forth on page 1 hereof.

COUNSEL CORPORATION [US]                 COUNSEL NURSING PROPERTIES, INC.

By: /s/ Stephen Weintraub                By: /s/ Stephen Weintraub
    -----------------------------            -----------------------------------

Its: Vice President and Secretary        Its: Vice President and Secretary
     ----------------------------             ----------------------------------

ADVOCAT INC.                             DIVERSICARE LEASING CORP.

By: /s/ William R. Council III           By: /s/ William R. Council III
    -----------------------------            -----------------------------------

Its: Executive Vice President and        Its: Executive Vice President and
     ----------------------------             ----------------------------
     Chief Financial Officer                  Chief Financial Officer
     -----------------------                  -----------------------

OMEGA HEALTHCARE INVESTORS, INC.         OHI SUNSHINE, INC.

 By: /s/ Scott Kellman                   By: /s/ Scott Kellman
     ----------------------------            -----------------------------------

 Its: Chief Operating Officer            Its: Chief Operating Officer
      ---------------------------             ----------------------------------

                                         STERLING ACQUISITION CORP.

                                         By: /s/ Scott Kellman
                                             -----------------------------------

                                         Its: Chief Operating Officer
                                              ----------------------------------

                                       18
<PAGE>

                                   EXHIBIT "A"

                              MORTGAGED FACILITIES

I.   DESOTO COUNTY

Name of Facility: DeSoto Manor Nursing Home

Facility Address: 1002 North Brevard Avenue, Arcadia, Florida  34266

Legal Description:

Begin at the Southeast corner of Northeast 1/4 of Southwest 1/4 of Section 30,
Township 37 South, Range 25 East; thence North 00 degrees 02 minutes East along
the East line of said tract, 280.00 feet to Point of Beginning; thence continue
same line 400.00 feet; thence South 89 degrees 44 minutes 06 seconds West,
460.14 feet to the East Boundary of the Baptist Church Property; thence South 00
degrees 08 minutes East 400.00 feet to the North boundary of the DeSoto Hospital
property; thence North 89 degrees 44 minutes 06 seconds East 458.98 feet to the
Point of Beginning.

II.  LAKE COUNTY

Name of Facility: Leesburg Nursing Center

Facility Address: 715 East Dixie Avenue, Leesburg, Florida  34748

Legal Description:

Parcel A:

A part of the Northwest 1/4 of the Southwest 1/4 of Section 25, Township 19
South, Range 24 East, Lake County, Florida, being more particularly described as
follows:

Begin at the intersection of the South right-of-way of Dixie Avenue and the West
right-of-way line of Lake Street; run thence Southerly along the said West
right-of-way of Lake Street a distance of 450.0 feet; thence Westerly parallel
with the South right-of-way of Dixie Avenue 200.0 feet; thence Northerly
parallel with the West right-of-way of Lake Street 450.0 feet to the South
right-of-way of Dixie Avenue; run thence Easterly along said South right-of-way
of Dixie Avenue 200.0 feet to the Point of Beginning.

Parcel B:

A part of the Northwest 1/4 of the Southwest 1/4 of Section 25, Township 19
South, Range 24 East, Lake County, Florida, being more particularly described as
follows:

                                       19
<PAGE>

From the Northwest corner of the Southwest 1/4 of Section 25, run Southerly
along the West line of Section 25 a distance of 60.43 feet to the South
right-of-way line of Dixie Avenue; thence Easterly along the South right-of-way
of Dixie Avenue 1285.48 feet to the West right-of-way of Lake Street; thence
Southerly along the West right-of-way of Lake Street 450.0 feet to the Point of
Beginning; thence West parallel with said South right-of-way of Dixie Avenue
200.0 feet; thence South parallel with the right-of-way of Lake Street, 150.0
feet; thence East parallel with Dixie Avenue 200.0 feet to Lake Street; thence
North along right-of-way of Lake Street 150.0 feet to the Point of Beginning.

III. HARDEE COUNTY

Name of Facility: Hardee Manor Care Center

Facility Address: 401 Orange Place, Wauchula, Florida  33873

Legal Description:

All of Blocks E and F of MOONLIGHT PARK SUBDIVISION, to the City of Wauchula, in
Section 9, Township 34 South, Range 25 East and in Plat Book 4, Page 9, public
records of Hardee County, Florida.

Being the same property conveyed to Grantor herein by Warranty Deed recorded in
Book 244, Page 522, in the Office of the Circuit Court Clerk, Hardee County,
Florida.

AND

That portion of Ninth Avenue lying between Orange Place and Grove Street and
between Blocks E and F of MOONLIGHT PARK SUBDIVISION to the City of Wauchula,
public records of Hardee County, Florida.

Being the same property conveyed to Grantor herein by Warranty Deed recorded in
Book 257, Page 497, in the office of Circuit Court clerk, Hardee County,
Florida.

                                       20

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