Document:

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                                                                    EXHIBIT 10.4

                       SIXTH AMENDMENT TO MASTER AMENDMENT
                         TO LOAN DOCUMENTS AND AGREEMENT

      THIS SIXTH AMENDMENT TO MASTER AMENDMENT TO LOAN DOCUMENTS AND AGREEMENT
is made and entered into by and between AMSOUTH BANK, successor in interest by
merger to First American National Bank (hereinafter referred to as "AmSouth" or
as "First American"), ADVOCAT INC., a Delaware corporation (herein referred to
as "Advocat"), DIVERSICARE MANAGEMENT SERVICES CO., a Tennessee corporation and
wholly-owned subsidiary of Advocat ("DMS"), ADVOCAT FINANCE, INC., a Delaware
corporation and wholly-owned subsidiary of DMS ("AFI"), DIVERSICARE LEASING
CORP., a Tennessee corporation and wholly-owned subsidiary of AFI ("DLC"),
ADVOCAT ANCILLARY SERVICES, INC., a Tennessee corporation and wholly-owned
subsidiary of DMS ("AAS"), DIVERSICARE GENERAL PARTNER, INC., a Texas
corporation and wholly-owned subsidiary of DLC ("DGP"), FIRST AMERICAN HEALTH
CARE, INC., an Alabama corporation and wholly-owned subsidiary of DLC ("FAHC"),
DIVERSICARE LEASING CORP. OF ALABAMA, an Alabama corporation and wholly-owned
subsidiary of DLC ("DLCA"), ADVOCAT DISTRIBUTION SERVICES, INC., a Tennessee
corporation and wholly-owned subsidiary of DMS ("ADS"), DIVERSICARE ASSISTED
LIVING SERVICES, INC., a Tennessee corporation and a wholly-owned subsidiary of
AFI ("DALS"), DIVERSICARE ASSISTED LIVING SERVICES, NC, LLC, a Tennessee limited
liability company formed by DMS and DALS ("DALS-NC"), DIVERSICARE ASSISTED
LIVING SERVICES, NC I, LLC, a Delaware limited liability company ("DALS-NC I"),
DIVERSICARE ASSISTED LIVING SERVICES, NC II, LLC, a Delaware limited liability
company ("DALS-NC II") both of DALS-NC I and DALS-NC II being subsidiary
entities of DALS-NC, STERLING HEALTH CARE MANAGEMENT, INC., a Kentucky
corporation and wholly-owned subsidiary of DLC ("SHCM"), DIVERSICARE AFTON OAKS,
LLC, a Delaware limited liability company ("DAO"), DIVERSICARE GOOD SAMARITAN,
LLC, a Delaware limited liability company ("DGS"), DIVERSICARE PINEDALE, LLC, a
Delaware limited liability company ("DP"), DIVERSICARE WINDSOR HOUSE, LLC, a
Delaware limited liability company ("DWH"), DIVERSICARE HARTFORD, LLC, a
Delaware limited liability company ("DH") each of DAO, DGS, DP, DWH, and DH
being subsidiary entities of DLC (Advocat and all of its direct and indirect
subsidiaries, as identified hereinabove, being sometimes referred to herein
collectively as the "Debtors," whether in their capacity as a Borrower,
Guarantor, Pledgor, Subsidiary or otherwise, as defined in the Loan Documents
referred to below).

                              W I T N E S S E T H:

      WHEREAS, pursuant to the terms of Master Credit and Security Agreement
dated as of December 27, 1996 (the Master Credit and Security Agreement, as
amended as herein set forth, being herein called the "Master Credit and Security
Agreement"), First American and GMAC Commercial Mortgage Corporation, a
California corporation being one and the same as GMAC-CM Commercial Mortgage
Corporation ("GMAC") agreed to provide to DMS the Credit Facility (as defined
therein), to consist of a $10,000,000.00 line of credit for working capital to
be funded by First American (the "Working Capital Line"), and a $40,000,000.00
non-revolving line of

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credit for acquisitions and refinancings of Projects, as defined in the Master
Amendment, to be funded by GMAC, and Advocat and each then-existing direct and
indirect subsidiary of Advocat agreed to and did execute a full and
unconditional Guaranty and Suretyship Agreement of all indebtedness incurred by
DMS thereunder (each party so executing a Guaranty and Suretyship Agreement,
together with the parties thereafter executing a Guaranty and Suretyship
Agreement, as hereinafter set forth, are herein sometimes called a "Guarantor"
or collectively "Guarantors", and the Guaranty and Suretyship Agreements are
herein sometimes called a "Guaranty and Suretyship Agreement" or collectively
the "Guaranty and Suretyship Agreements"); and

      WHEREAS, the $3,720,640.00 loan made by GMAC to DLC on December 27, 1996
for the acquisition of Afton Oaks Nursing Home, as assumed by DAO pursuant to
that Sixth Amendment to and Assumption of Promissory Note dated February 28,
2002 (the "DAO Loan"), is the only remaining outstanding acquisition or
refinance GMAC loan on a Project, as defined in the Master Amendment; and

      WHEREAS, pursuant to the terms of Master Amendment to Loan Documents and
Agreement executed on November 8, 2000 by AmSouth, certain Debtors then existing
and GMAC and dated as of October 1, 2000 (the Master Amendment to Loan Documents
and Agreement, executed by the parties on November 8, 2000 and dated as of
October 1, 2000, as amended by that First Amendment to Master Amendment to Loan
Documents and Agreement executed by the parties on November 28, 2000 and dated
as of October 1, 2000, and as amended by that Second Amendment to Master
Amendment to Loan Documents and Agreement executed by the parties to be
effective as of December 15, 2002 (the "Second Amendment"), and as amended by
that Third Amendment to Master Amendment to Loan Documents and Agreement
executed by the Debtors and AmSouth to be effective as of July 11, 2003 (the
"Third Amendment"), and as amended by that Fourth Amendment to Master Amendment
to Loan Documents and Agreement executed by the Debtors and AmSouth to be
effective as of April 16, 2004 (the "Fourth Amendment"), and as amended by that
Fifth Amendment to Master Amendment and Loan Documents and Agreement executed by
the Debtors and AmSouth to be effective as of October 29, 2004 (the "Fifth
Amendment") and as further amended as herein set forth, being herein called the
"Master Amendment"), AmSouth agreed to modify the Master Credit and Security
Agreement, the Indebtedness and the Loan Documents ("Indebtedness" and "Loan
Documents" being defined in the Master Amendment); and

      WHEREAS, pursuant to the terms of the Master Amendment, in order to renew
the indebtedness defined as the "NC Bridge Loan," in the Master Amendment, DALS
executed a Renewal Promissory Note dated October 1, 2000 in the amount of
$9,412,383.87, which was further modified and extended by seven (7) separate
amendments to the Modified Revolving Note executed by DALS and AmSouth on
December ___ 2000, December 15, 2002, July 11, 2003, January 9, 2004, April 16,
2004, July 16, 2004, and October 29, 2004 (the Renewal Promissory Note and all
amendments, modifications and extensions thereto are herein referred to
collectively as the "NC Bridge Loan Note"); and

      WHEREAS, pursuant to the terms of the Master Amendment, in order to renew
and replace the "Original Overline Note," as defined in the Master Amendment,
DMS executed a Renewal Promissory Note (Overline Facility) dated October 1, 2000
in the amount of $3,500,000.00, which was further modified and extended by seven
(7) separate amendments to the Modified Revolving Note executed by DMS and
AmSouth on December ____, 2000, December 15, 2002, July 11, 2003, January 4,
2004, April 16, 2004, July 16, 2004, and October

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29, 2004 (the Renewal Promissory Note (Overline Facility) and all amendments,
modifications and extensions thereto are herein referred to collectively as the
"Overline Note"); and

      WHEREAS, pursuant to the terms of the Fifth Amendment, in order to renew,
reduce, modify, extend and replace the December 15, 2002 Reduced and Modified
Renewal Revolving Promissory Note dated in the amount of $4,500,000.00 and
executed by DMS (as amended, modified and extended pursuant to five (5) separate
amendments executed by DMA and Amsouth on July 11, 2003, August 2, 2003, January
9, 2004, April 16, 2004 and July 11, 2004,) which Reduced and Modified Renewal
Revolving Promissory Note replaced the December 27, 1996 Revolving Promissory
Note in the amount of $10,000,000.00 as set forth in the Master Amendment, DMS
executed a Replacement Reduced and Modified Renewal Revolving Promissory Note in
the principal amount of $2,500,000.00 on October 29, 2004, (the Replacement
Modified Renewal Revolving Promissory Note and all subsequent amendments,
modifications and extensions thereto are herein referred to collectively as the
"Modified Revolving Note") (the NC Bridge Loan Note, the Overline Note and the
Modified Revolving Note are herein sometimes referred to collectively as the
"Notes"); and

      WHEREAS, the Notes matured on January 29, 2005, and Debtors have failed to
satisfy the indebtedness arising thereunder; and

      WHEREAS, DH is being formed as a new entity in order to acquire real
property and certain other assets located in Hartford, Alabama (the "DH
Property") and has requested that AmSouth consent to a loan in the approximate
amount of $3,700,000.00 from GMAC to acquire the DH Property (the "DH
Acquisition Loan"); and

      WHEREAS, AmSouth has agreed that DH may acquire the DH Property and has
assented to the DH Acquisition Loan in consideration of DH being joined as a
Debtor to the Master Amendment and all Loan Documents as therein defined, and
upon such other conditions as more specifically set forth herein; and

      WHEREAS, the Letters of Credit as defined in the Master Amendment have
expired and, subsequent to the execution of the Master Amendment, AmSouth issued
Letter of Credit Number 01814184 in favor of Employers Insurance of Wausau for
the account of DMS, in the amount of $375,000.00 (the "Wausau Letter of
Credit"), which remains issued and outstanding and the parties desire to amend
the Master Amendment to reflect these modifications; and

      WHEREAS, subsequent to the execution of the Master Amendment, DLC became
the owner of six (6) nursing facilities in the state of Texas, previously owned
by Texas Diversicare Limited Partnership ("TDLP"), (the "Texas Properties"), and
DLC executed Deeds of Trust to AmSouth as security for the Indebtedness (the
"Texas Deeds of Trust"), two (2) of which Texas Deeds of Trust were released by
AmSouth subsequent to the sale of the Texas Properties located in Refugio
County, Texas and Goliad County, Texas, and the parties desire to amend the
Master Amendment to reflect these modifications; and

      WHEREAS, subsequent to the execution of the Master Amendment, GMAC by
separate Loan Agreements dated March 29, 2001, GMAC made a $4,709,000.00 loan to
DWH (as modified or amended, the "DWH Loan") a $2,913,000.00 loan to DP (as
modified or amended,

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the "DP Loan") for the acquisition of certain skilled nursing homes (the DH
Loan, the DWH Loan and the DP Loan being herein referred to as the "New Project
Loans")

      WHEREAS, the Indebtedness and Loan Documents are fully enforceable and are
not subject to any defense or counterclaim, or any claim of setoff or
recoupment; and

      WHEREAS, the Debtors are presently in default of the Indebtedness and
their respective obligations arising under the Loan Documents and Debtors have
again represented to AmSouth that because of their financial conditions, they
are unable to pay the full amount of their liability for the Indebtedness; and

      WHEREAS, AmSouth has agreed to further extend the maturity dates of the
Notes and AmSouth has agreed to temporarily forbear from exercising its remedies
upon default subject to the terms and conditions herein set forth; and

      WHEREAS, each of the parties acknowledges that it has been represented by
counsel in connection with the negotiation and execution of this Agreement, that
the same represents an arms-length transaction, and that each of the other
parties has acted in good faith in the making of this Agreement; and

      WHEREAS, all terms capitalized herein, but not specially defined herein,
are intended to have the meanings ascribed to them in the Loan Documents, unless
the context clearly indicates otherwise; and

      WHEREAS, the parties stipulate and agree that the facts recited
hereinabove are true and correct; and

      WHEREAS, the parties have agreed to modify the Indebtedness and Loan
Documents, and have otherwise agreed all as more particularly set forth herein.

      NOW, THEREFORE, for and in consideration of the foregoing recitals (all of
which are incorporated herein as agreements, representations, warranties or
covenants of the Debtors), the payment of a commitment fee by Debtors to AmSouth
as set forth below, of the mutual covenants and promises contained herein, and
of other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties hereby covenant,
amend and agree as follows:

      1. The Modified Revolving Note is hereby amended to extend the Maturity
Date from January 29, 2005 to January 26, 2006, and to reduce the maximum
principal amount which may be advanced thereunder from $2,500,000.00 to
$2,300,000.00, pursuant to the First Amendment to Replacement Reduced and
Modified Renewal Revolving Promissory Note executed by DMS and AmSouth of even
date herewith. The parties acknowledge that as of the effective date hereof, the
outstanding balance of the Modified Revolving Note is $0.00.

      2. The NC Bridge Loan Note is hereby amended to change the Maturity Date
defined therein from January 29, 2005 to January 29, 2006, and to modify the
interest rate and the amount of the monthly payments due thereunder in
accordance with the Eighth Amendment to Renewal Promissory Note executed by
AmSouth and DALS of even date herewith. The

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parties agree that as of the effective date hereof, the principal balance of the
NC Bridge Loan Note is $4,984,732.61.

      3. The Overline Note is hereby amended to change the Maturity Date defined
therein from January 29, 2005 to January 29, 2006 and to modify the interest
rate and the amount of the monthly payments due thereunder in accordance with
the Eighth Amendment to Renewal Promissory Note (Overline Facility) executed by
AmSouth and DMS of even date herewith. The parties agree that as of the
effective date hereof, the principal balance of the Overline Note is
$3,173,228.31.

      4. The Notes have been amended to include a new interest rate in the event
of a default thereunder. Therefore, the Default Rate, as defined in the Master
Credit and Security Agreement, is hereby deleted and the following language is
substituted instead:

            The whole of the principal sum and, to the extent permitted by law,
      any accrued interest, shall bear, after default or maturity, interest at
      the lesser of (i) the highest lawful rate then in effect pursuant to
      applicable law, or (ii) the rate that is four percentage points (4%) in
      excess of Lender's Prime Rate, as it varies from time to time.

      5. The Letters of Credit, as defined in the Master Amendment, have
expired. The parties acknowledge that the Wausau Letter of Credit shall remain
issued and outstanding and will expire on July 4, 2005. As security for
AmSouth's obligations arising under the Wausau Letter of Credit and under the
terms of this Agreement, AmSouth shall have a first priority security interest
in AmSouth Time Deposit Account Number 5329822777 in the name of Advocat, for so
long as any Indebtedness remains outstanding.

            DH hereby joins in this Loan Agreement as a Subsidiary and Guarantor
and joins in the Master Amendment as a Debtor. DH collaterally assigns and
grants to AmSouth, as collateral security for all sums advanced by AmSouth
pursuant to the Master Amendment, as amended and the Loan Documents, a security
interest in all items of the property and interests in property, together with
all proceeds and products thereof and all accessions thereto, as described in
Exhibit A attached hereto.

            DH and all other Debtors expressly grant to AmSouth the right to
file such UCC-1 financing statements and such other amendments and continuation
statements as required by AmSouth to protect its security interest in the
collateral herein described.

      6. DLC hereby collaterally assigns and grants to AmSouth, as collateral
security for all sums advanced by AmSouth pursuant to the Master Amendment, as
amended and the Loan Documents, a security interest in all items of the
following described property and interests in property, together with all
proceeds and products thereof and all accessions thereto, as applicable: All of
its membership interest (being a 100% undivided interest) in Diversicare
Hartford, LLC, a Delaware limited liability company. DLC expressly grants to
AmSouth the right to file such UCC-1 financing statements and such other
amendments and continuation statements as required by AmSouth to protect its
security interest in the collateral herein described.

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      7. Debtors acknowledge that Section 5.4 of the Master Credit and Security
Agreement, requires that they obtain consent to the DH Loan from AmSouth AmSouth
hereby consents to the DH Loan as set forth in this Agreement, but to no further
extent and not otherwise.

      8. Debtors acknowledge that they are presently in default of the amended
financial covenants appearing in Section 2 (c) of the Master Amendment. Debtors
also acknowledge that they are presently in default of Section 5.1 (c)(iii) of
the Master Credit and Security Agreement. Provided that there exists no other
default under this Agreement or the Loan Documents, as amended, AmSouth
expressly agrees to forbear from exercising its remedies under default of these
amended financial covenants but only until January 29, 2006.

      9. Debtors represent to AmSouth that since they have no right to request
advances or loans from GMAC under the Acquisition Line or the Acquisition Note,
as defined in the Master Credit and Security Agreement, GMAC is not required to
join in the execution of this document or to execute any of the Loan Documents
now or hereafter executed by and between AmSouth and the Debtors or any of them.
Debtors shall cause GMAC to execute any amendments or replacements to the
Intercreditor Agreement dated December 27, 1996 and executed by AmSouth, GMAC
and the Debtors, as subsequently amended (the "Intercreditor Agreement") as
required by AmSouth in order to protect AmSouth's interests hereunder. Debtors
acknowledge that the failure of GMAC to consent in writing to this Agreement or
to the execution of such intercreditor agreement will not result in a waiver of
any of the Debtors' obligations hereunder.

      10. All indebtedness and obligations now or hereafter owing to AmSouth by
Advocat, DMS, DALS-NC, or any other of the Debtors, or any combination thereof,
including but not limited to the Indebtedness, whether evidenced by the Wausau
Letter of Credit remaining outstanding, the Overline Note, the NC Bridge Loan
Note, or the Modified Revolving Note shall be guaranteed by all of Debtors and
shall continue to be evidenced by the Additional Continuing Guaranty and
Suretyship Agreements which shall continue in full force and effect.

      11. A default in any of the Loan Documents, this instrument, any
additional instruments and documents executed pursuant hereto, or in any
indebtedness or obligation now or hereafter owing by any, some or all of Debtors
to AmSouth, shall, at the option of AmSouth, constitute a default in any or all
of the Loan Documents or indebtedness now or hereafter owing by any, some or all
of the Debtors to AmSouth, provided that as between AmSouth and GMAC the further
provisions of the Intercreditor Agreement shall be applicable.

      12. Upon execution of this Amendment, Advocat shall pay a commitment fee
to AmSouth in the total amount of $10,000.00 for the commitment and obligations
of AmSouth.

      13. The Debtors hereby ratify and restate all of the covenants, warranties
and representations contained in the Master Credit and Security Agreement, as
amended, and the Master Amendment, as amended, as of the date hereof, and each
hereby acknowledges and confirms that the terms and conditions of the Master
Credit and Security Agreement, as amended, and the Master Amendment, as amended,
remain in full force and effect. In addition, the Debtors ratify and restate the
additional covenants set forth in Section 12 of the Third Amendment.

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      14. Debtors further covenant and agree that, upon execution of this
Agreement, they will cause to be paid all of the fees and expenses incurred by
AmSouth, its agents, attorneys, accountants, appraisers, employees and
representatives, pursuant to all actions contemplated by the Loan Documents no
later than fifteen (15) days after presentment of invoices for such fees and
expenses to Debtors by AmSouth. Failure of Debtors to timely pay such invoices
shall constitute a default hereunder.

      15. The indebtedness evidenced by the Modified Revolving Note, the
Overline Note, and the NC Bridge Loan Note, may be prepaid at any time without
premium.

      16. The Master Credit and Security Agreement, as amended, and any other
Loan Documents affected hereby, are amended to the extent necessary to conform
such instruments and documents to the provisions set forth herein.

      17. Debtors hereby acknowledge and stipulate that none of them has any
claims or causes of action against AmSouth of any kind whatsoever. Debtors
hereby release AmSouth, and AmSouth's officers, directors, employees,
representatives, agents, attorneys, accountants and consultants. from any and
all claims, causes of action, demands and liabilities of any kind whatsoever,
whether direct or indirect, fixed or contingent, liquidated or non-liquidated,
disputed or undisputed, known or unknown, which Debtors, or any of them, has or
which arises out of any acts or omissions occurring prior to the execution of
this Agreement relating in any way to any event, circumstances, action or
failure to act from the beginning of time to the execution of this Agreement.

      IN WITNESS WHEREOF, the parties hereto have executed this instrument to be
effective January 29, 2005.

                                            AMSOUTH BANK, successor in interest
                                            by merger to First American National
                                            Bank

                                            By: /s/ Clark Cox
                                                --------------------------
                                                Clark Cox, Vice President

                                            DIVERSICARE MANAGEMENT SERVICES CO.,
                                            a Tennessee corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            ADVOCAT INC., a Delaware corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr. Chief
                                                Financial Officer

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                                            DIVERSICARE LEASING CORP.,
                                            a Tennessee corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            ADVOCAT ANCILLARY SERVICES, INC.,
                                            a Tennessee corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            DIVERSICARE GENERAL PARTNER, INC.,
                                            a Texas corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            FIRST AMERICAN HEALTH CARE, INC.,
                                            an Alabama corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            ADVOCAT FINANCE, INC.,
                                            a Delaware corporation

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                       8
<PAGE>

                                DIVERSICARE LEASING CORP. OF ALABAMA,
                                INC., an Alabama corporation

                                By: /s/ L. Glynn Riddle, Jr.
                                    ------------------------
                                    L. Glynn Riddle, Jr.,
                                    Chief Financial Officer

                                ADVOCAT DISTRIBUTION SERVICES, INC.,
                                a Tennessee corporation

                                By: /s/ L. Glynn Riddle, Jr.
                                    ------------------------
                                    L. Glynn Riddle, Jr.,
                                    Chief Financial Officer

                                DIVERSICARE ASSISTED LIVING SERVICES,
                                INC., a Tennessee corporation

                                By: /s/ L. Glynn Riddle, Jr.
                                    ------------------------
                                    L. Glynn Riddle, Jr.,
                                    Chief Financial Officer

                                DIVERSICARE ASSISTED LIVING SERVICES,
                                INC, LLC, a Tennessee limited liability company

                                By: /s/ L. Glynn Riddle, Jr.
                                    ------------------------
                                    L. Glynn Riddle, Jr.,
                                    Chief Financial Officer

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

                                By: /s/ L. Glynn Riddle, Jr.
                                    ------------------------
                                    L. Glynn Riddle, Jr.,
                                    Chief Financial Officer

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<PAGE>

                               DIVERSICARE ASSISTED LIVING SERVICES
                               INC II, LLC, a Delaware limited liability company

                               By: /s/ L. Glynn Riddle, Jr.
                                   ------------------------
                                   L. Glynn Riddle, Jr.,
                                   Chief Financial Officer

                               STERLING HEALTH CARE MANAGEMENT, INC.,
                               a Kentucky corporation

                               By: /s/ L. Glynn Riddle, Jr.
                                   ------------------------
                                   L. Glynn Riddle, Jr.,
                                   Chief Financial Officer

                               DIVERSICARE AFTON OAKS, LLC,
                               a Delaware limited liability company

                               By: /s/ L. Glynn Riddle, Jr.
                                   ------------------------
                                   L. Glynn Riddle, Jr.,
                                   Chief Financial Officer

                               DIVERSICARE GOOD SAMARITAN, LLC,
                               a Delaware limited liability company

                               By: /s/ L. Glynn Riddle, Jr.
                                   ------------------------
                                   L. Glynn Riddle, Jr.,
                                   Chief Financial Officer

                               DIVERSICARE PINEDALE, LLC,
                               a Delaware limited liability company

                               By: /s/ L. Glynn Riddle, Jr.
                                   ------------------------
                                   L. Glynn Riddle, Jr.,
                                   Chief Financial Officer

                                       10
<PAGE>

                                            DIVERSICARE WINDSOR HOUSE, LLC,
                                            a Delaware limited liability company

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                            DIVERSICARE HARTFORD, LLC,
                                            a Delaware limited liability company

                                            By: /s/ L. Glynn Riddle, Jr.
                                                ------------------------
                                                L. Glynn Riddle, Jr.,
                                                Chief Financial Officer

                                       11
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                                    EXHIBIT A

      The following described property and interests in property, together with
all proceeds and products thereof and all accessions thereto, as applicable:

a.    All of the right, title and interest of the Debtor in and to the accounts
      receivable of the Debtor, whether now existing or hereafter arising.

b.    All of the right, title and interest of the Debtor in and to all
      equipment, furnishings, and furniture of the Debtor, whether now owned or
      hereafter acquired, provided, however, (i) those of such items which are
      located at the GMAC-Financed Facilities financed under the NCI Loan and
      the NCII Loan, and financed, now or hereafter under the Acquisition Line
      of GMAC Commercial Mortgage Corporation ("GMAC") or under the New Project
      Loans shall not be First American Priority Collateral and shall be subject
      to the prior security interest of GMAC; and (ii) such security interest
      shall not include equipment leased by the Debtor.

c.    All of the general intangibles and other personal property of the Debtor,
      whether now existing or hereafter acquired or arising, provided, however,
      those of such items which are located at the GMAC-Financed Facilities
      financed under the NCI Loan and The NC II Loan, and financed now or
      hereafter under the Acquisition Line of GMAC, or under the New Project
      Loans shall not be First American Priority Collateral and shall be subject
      to the prior security interest of GMAC.

d.    All of the right, title and interest of the Debtor in and to all
      inventory, whether now owned or hereafter acquired, provided, however,
      those of such items which are located at the GMAC-Financed Facilities
      financed under the NCI Loan and the NCII Loan and financed now or
      hereafter under the Acquisition Line of GMAC, or under the New Project
      Loans shall not be First American Priority Collateral and shall be subject
      to the prior security interest of GMAC.

e.    All of the proceeds therefrom, including, without limitation, all proceeds
      of policies of insurance on any of the foregoing, provided, with respect
      to the proceeds located at, or arising from the operation of,
      GMAC-Financed Facilities financed under the NCI Loan and the NCII Loan and
      financed, now or hereafter, under the Acquisition Line of GMAC, or under
      the New Project Loans Secured Party shall have a second priority security
      interest in such proceeds, subject only to the security interest in favor
      of GMAC.

      "Projects," "Acquisition Line," "First American Priority Collateral," "NCI
      Loan" and "NC II Loan" are defined as set forth in the Master Credit and
      Security Agreement dated as of December 27, 1996, as amended, or the
      Intercreditor Agreement dated December 27, 1996, as amended, executed
      between Secured Party, GMAC, Debtor and affiliates of Debtor. "GMAC
      Financed Facilities" is defined in the Third Amendment to the
      Intercreditor Agreement executed between Secured Party, GMAC, Debtor and
      affiliates of Debtor on March 16, 2001. "New Project Loans" is defined in
      that Sixth Amendment to Master Amendment dated effective January 29, 2005.

                                       12<PAGE>

                                                                    EXHIBIT 10.5

                                 PROMISSORY NOTE

$3,700,000.00                                                  HARTFORD, ALABAMA
                                                                  APRIL 28, 2005

      FOR VALUE RECEIVED, the undersigned DIVERSICARE HARTFORD, LLC, a Delaware
limited liability company, having an address at c/o Advocat Inc., 277 Mallory
Station Road, Suite 130, Franklin, Tennessee 37067 (the "BORROWER"), hereby
promises to pay to the order of GMAC COMMERCIAL MORTGAGE CORPORATION, a
California corporation, having an address at 200 Witmer Road, Horsham,
Pennsylvania 19044-0809 (the "LENDER"), its successors and assigns as holder of
this Note or, if this Note has then been endorsed "to bearer," to the bearer of
this Note (Lender, its said successors and assigns, and any such bearer, being
hereinafter sometimes referred to collectively as the "HOLDER"), at Lender's
said address or at such other place or to such other person as may be designated
in writing to Borrower by Lender, the principal sum of THREE MILLION SEVEN
HUNDRED THOUSAND AND NO/100 Dollars ($3,700,000.00) (the "LOAN"), together with
interest on the unpaid balance thereof at the rate hereinafter set forth.

      ON THE TERMS AND SUBJECT TO THE CONDITIONS which are hereinafter set
forth:

      Section 1. Interest Rate and Payment Dates.

      1.1 Initial Rate and Initial Payment. Interest shall accrue on the
outstanding principal balance hereunder from time to time from and after the
date hereof at the rate of (7.06%) per annum until the first Rate Adjustment
Date (as defined below). On each successive Rate Adjustment Date, the rate of
interest at which interest accrues shall be adjusted to the then applicable Note
Rate (as defined in Section 1.4). Interest for the period beginning on the date
of this Note and ending on and including the last day of the month in which this
Note is dated shall be payable on the date hereof. Interest shall be paid in
arrears and shall be computed on the basis of a 360-day year and actual number
of days elapsed for any whole or partial month in which interest on this Note is
being calculated and shall be charged on the principal balance outstanding from
time to time.

      1.2 Rate Adjustment Date and Payment Adjustment Dates. The rate of
interest on the outstanding principal balance hereof from time to time shall be
adjusted on the following dates (each being a "RATE ADJUSTMENT DATE"): the first
Rate Adjustment Date shall be May 1, 2005, and subsequent Rate Adjustment Dates
shall fall on the first day of each calendar month thereafter. The first payment
adjustment date shall be June 1, 2005, and subsequent payment adjustment dates
shall fall on the first day of each calendar month thereafter during the term of
the Loan.

      1.3 Default Interest Rate. If Borrower fails to make any payment of
principal, interest or fees on the date on which such payment becomes due and
payable (including applicable grace periods) whether at maturity or by
acceleration or on any other date, such payment shall accrue

<PAGE>

interest from the date on which such payment was due (and not the date of the
payment default) until paid at the fluctuating rate ("DEFAULT RATE") which is
the lesser of (a) five percent (5%) per annum above the then applicable Note
Rate and (b) the maximum rate permitted by applicable law.

      1.4 Note Rate. The "NOTE RATE" shall mean four percent (4%) per annum plus
the average of London Interbank Offered Rates ("LIBOR") for a term of one month
determined solely by Holder as of each Rate Adjustment Date in the following
manner: on each Rate Adjustment Date, Holder will obtain the one month LIBOR (in
U.S. Dollar deposits) from the appropriate Bloomberg display page available as
of the close of business announced on the last business day of the month
immediately preceding the Rate Adjustment Date; in the event Bloomberg ceases
publication or ceases to publish the one month LIBOR, Holder shall select a
comparable publication to determine the one month LIBOR and provide notice
thereof to Borrower; LIBOR may or may not be the lowest rate based upon the
market for U.S. Dollar deposits in the London Interbank Eurodollar Market at
which Holder prices loans on the date on which the Note Rate is determined by
Holder as set forth above.

      1.5 Note Rate Adjustments. This Note shall bear interest at the rate set
forth above or at the applicable Note Rate until a new Note Rate is determined
on each Rate Adjustment Date in accordance with the provisions hereof; provided,
however, that, if Holder at any time determines, in the sole but reasonable
exercise of its discretion that it has miscalculated the amount of the monthly
payment of principal and/or interest (whether because of a miscalculation of the
Note Rate or otherwise), Holder shall give notice to Borrower of the corrected
amount of such monthly payment (and the corrected amount of the Note Rate, if
applicable) and (a) if the corrected amount of such monthly payment represents
an increase thereof, Borrower shall, within ten (10) calendar days after the
date of such notice, pay to Holder any sums that Borrower would have otherwise
been obligated under this Note to pay to Holder had the amount of such monthly
payment not been miscalculated or (b) if the corrected amount of such monthly
payment represents a decrease thereof, and Borrower is not otherwise in breach
or default under any of the terms and provisions of the Note or the Loan
Agreement of even date herewith by and between Borrower and Lender (the "LOAN
AGREEMENT"), Borrower shall, within ten (10) calendar days thereafter be paid
the sums that Borrower would not have otherwise been obligated to pay to Holder
had the amount of such monthly payment not been miscalculated.

      1.6 LIBOR Unascertainable. If (a) on any date on which the Note Rate would
otherwise be set, Holder shall have determined in good faith (which
determination shall be conclusive) that (i) adequate and reasonable means do not
exist for ascertaining the one month LIBOR or (ii) a contingency has occurred
which materially and adversely affects the London Interbank Eurodollar Market at
which Holder prices loans on the date on which the Note Rate is determined by
Holder as set forth above, or (b) at any time Holder shall have determined in
good faith (which determination shall be conclusive) that the making,
maintenance or funding of any part of the Loan has been made impracticable or
unlawful by compliance by Holder in good faith with any law or guideline or
interpretation or administration thereof by any governmental authority charged
with the interpretation or administration thereof or with any request or
directive of any such governmental authority (whether or not having the force of
law) then, and in any such event, Holder may notify Borrower of such
determination. Upon such date as shall

                                       2
<PAGE>

be specified in such notice (which shall not be earlier than the date such
notice is given), the obligation of Holder to charge interest to Borrower at the
Note Rate shall be suspended until Holder shall have later notified Borrower of
Holder's determination in good faith (which determination shall be conclusive)
that the circumstances giving rise to such previous determination no longer
exist.

      1.7 U.S. Treasury Securities. If Holder notifies Borrower of a
determination under subsection 1.6 hereof for purposes of calculating the Note
Rate, the one month LIBOR shall automatically be converted to the "INDEX" of the
weekly average yield on United States Treasury Securities adjusted to a constant
maturity of one year, as made available by the Federal Reserve Board forty-five
(45) days prior to the Rate Adjustment Date.

      1.8 Reimbursement for Increased Costs. If any law or guideline or
interpretation or application thereof by any governmental authority charged with
the interpretation or administration thereof or compliance with any request or
directive of any governmental authority (whether or not having the force of law)
now existing or hereafter adopted (a) subjects Holder to any tax or changes the
basis of taxation with respect to this Note, the Loan or payments by Borrower of
principal, interest or other amounts due from Borrower hereunder or thereunder
(except for taxes on the overall net income or overall gross receipts of Holder
imposed as a result of a present or former connection between the jurisdiction
of the governmental authority imposing such tax on Holder, provided that this
exclusion shall not apply to a connection arising solely from Holder having
executed, delivered, performed its obligations under, or received a payment
under, or enforced, any of the Loan Documents (as defined in Section 8.1.1
below)), or (b) imposes upon Holder any other condition or expense with respect
to this Note, the Loan or its making, maintenance or funding of any part of the
Loan or any security therefor, and the result of any of the foregoing is to
increase the cost to, reduce the income receivable by, or impose any expense
(including, without limitation, loss of margin) upon, Holder with respect to the
Note, or the making, maintenance or funding of any part of the Loan, by an
amount which Holder deems to be material, Holder may from time to time notify
Borrower of the amount determined in good faith (using any averaging and
attribution methods) by Holder (which determination shall be conclusive) to be
necessary to compensate Holder for such increase, reduction or imposition and,
if Borrower is by law prohibited from paying any such amount, Holder may elect
to declare the unpaid principal balance hereof and all interest accrued thereon
immediately due and payable. Such amount shall be due and payable by Borrower to
Holder ten (10) days after such notice is given.

      Section 2. Principal and Interest Payments. Commencing on June 1, 2005,
and continuing on the first day of each calendar month thereafter through and
including the Maturity Date (defined below), monthly payments of principal and
interest shall adjust monthly and be made in such amount, taking into account
the then effective Note Rate, as is sufficient to fully amortize the unpaid
principal balance of the Note on the date that is twenty-five (25) years after
the first Rate Adjustment Date.

      Section 3. Application of Payments. Payments made by Borrower on account
hereof shall be applied, first, toward any Late Fees (hereinafter defined) or
other fees and charges due hereunder, second, toward payment of any interest due
at the Default Rate, third, toward

                                       3
<PAGE>

payment of any interest due at the then applicable Note Rate set forth in
Section 1.4 above, and fourth, toward payment of principal. Notwithstanding the
foregoing, if any advances made by Holder under the terms of any instruments
securing this Note have not been repaid, any payments made may, at the option of
Holder, be applied, first, to repay such advances and interest thereon, with the
balance, if any, applied as set forth in the preceding sentence.

      Section 4. Maturity Date. Anything in this Note to the contrary
notwithstanding, the entire unpaid balance of the principal amount hereof and
all interest accrued thereon, to and including the Maturity Date (as defined
below) (including interest accruing at the Default Rate), and all Late Fees (as
defined below) shall, unless sooner paid, and except to the extent that payment
thereof is sooner accelerated, be and become due and payable on April 28, 2008
(the "MATURITY DATE"). Notwithstanding any other provision contained herein, if
repayment of the Loan, whether at maturity or upon acceleration or otherwise, is
funded from the proceeds of any refinancing of the Loan, then Borrower shall pay
to Lender an exit fee equal to one half of one percent (0.5%) of the outstanding
principal balance of this Note on the date of such prepayment (which balance
shall be calculated exclusive of any voluntary partial prepayments) unless
Lender has received a contractually agreed upon sum for the arrangement thereof
or has elected not to provide such refinancing (the "Exit Fee").

      Section 5. Prepayment.

      Commencing the first (1st) anniversary of the Loan, prepayment of the Loan
in full shall be permitted without penalty, upon not less than thirty (30) and
not greater than forty (40) days prior written notice to Lender specifying the
date on which prepayment is to be made. Any such prepayment shall be credited,
first, toward any Late Fees due hereunder, second, toward payment of any accrued
and unpaid interest due hereunder at the Default Rate, third, toward payment of
any accrued and unpaid interest due hereunder at the Note Rate, and, fourth,
toward payment of principal; provided, however, that if any advances made by
Holder under the terms of any instruments securing this Note have not been
repaid, any payments made may, at the option of Holder, be applied, first, to
repay such advances, and interest thereon, with the balance, if any, applied as
set forth in the preceding sentence. Notwithstanding any other provision
contained herein, if prepayment of the Loan is funded from the proceeds of any
refinancing of the Loan, then prepayment shall be subject to the Exit Fee.

      Section 6. Method of Payment.

      Each payment of the Loan Obligations (as defined in the Loan Agreement)
shall be paid directly to Holder in lawful tender of the United States of
America. Each such payment shall be paid by 1:00 p.m. Horsham, Pennsylvania,
time on the date such payment is due, except if such date is not a Business Day
(as defined in the Loan Agreement) such payment shall then be due on the first
Business Day after such date. Any payment received after 1:00 p.m. Horsham,
Pennsylvania, time shall be deemed to have been received on the immediately
following Business Day.

                                       4
<PAGE>

      Section 7. Security.

      The debt evidenced by this Note is to be secured by, among other things,
(a) a Mortgage and Security Agreement (the "MORTGAGE") of even date herewith by
and between Borrower and Lender, and intended to be recorded in the office of
the Judge of Probate of Geneva County, Alabama, covering certain real property
which is described in Exhibit "A" to the Mortgage, and (b) Guaranty Agreement of
even date herewith (the "GUARANTY AGREEMENT"), given by Advocat Inc., a Delaware
corporation (the "GUARANTOR"), for the benefit of Holder, and (c) a
Cross-Collateralization and Cross-Default Agreement of even date herewith by and
between Borrower, the Related Borrowers (as defined in the Loan Agreement),
Guarantor and Lender, and intended to be recorded in the office of the Judge of
Probate of Geneva County, Alabama.

      Section 8. Default.

      8.1 Events of Default. Anything in this Note to the contrary
notwithstanding, on the occurrence of any of the following events (each of which
is referred to herein, together with each of the Events of Default defined and
described in the Loan Agreement and the Mortgage as an "EVENT OF DEFAULT"),
Holder may, in the exercise of its sole and absolute discretion, accelerate the
debt evidenced by this Note, in which event the entire outstanding principal
balance and all interest and fees accrued thereon shall immediately be and
become due and payable without further notice:

            8.1.1 Failure to Pay or Perform. If (a) Borrower fails in making any
payment to Holder of any or all sums due hereunder within ten (10) days after
such payment becomes due or on the Maturity Date or (b) there exists an uncured
default under any other document or instrument evidencing or securing the Loan
(collectively, the "LOAN DOCUMENTS") which has been executed by Borrower and/or
Guarantor or Manager, and such default is not cured within the grace or cure
period, if any, provided in any of such Loan Documents.

            8.1.2 Bankruptcy.

                  (a) If Borrower, Guarantor or Manager (i) applies for or
consents to the appointment of a receiver, trustee or liquidator of Borrower,
Guarantor or Manager, as the case may be, or of all or a substantial part of its
assets, (ii) files a voluntary petition in bankruptcy, or admits in writing its
inability to pay its debts as they come due, (iii) makes an assignment for the
benefit of creditors, (iv) files a petition or an answer seeking a
reorganization or an arrangement with creditors or seeking to take advantage of
any insolvency law, (v) performs any other act of bankruptcy, or (vi) files an
answer admitting the material allegations of a petition filed against Borrower,
Guarantor or Manager in any bankruptcy, reorganization or insolvency proceeding;
or

                  (b) if (i) an order, judgment or decree is entered by any
court of competent jurisdiction adjudicating Borrower or Guarantor or Manager to
be bankrupt or insolvent, or approving a receiver, trustee or liquidator of
Borrower or Guarantor or Manager or of all or a substantial part of its assets,
or (ii) there otherwise commences with respect to Borrower or Guarantor or
Manager or any of its assets any proceeding under any bankruptcy,

                                       5
<PAGE>

reorganization, arrangement, insolvency, readjustment, receivership or like law
or statute, and if such order, judgment, decree or proceeding continues unstayed
for any period of sixty (60) consecutive days after the expiration of any stay
thereof.

            8.1.3 Judgments. If any judgment for the payment of money in excess
of $25,000.00 hereafter awarded against Borrower or a judgment in excess of
$100,000 hereafter awarded against Guarantor or Manager, by any court of
competent jurisdiction remains unsatisfied or otherwise in force and effect for
a period of thirty (30) days after the date of such award, unless such judgment
is either (i) fully covered by collectible insurance and such insurer has within
such period acknowledged such coverage in writing, or (ii) although not fully
covered by insurance, enforcement of such judgment has been effectively stayed,
such judgment is being contested or appealed by appropriate proceedings and
Borrower, Guarantor or Manager, as the case may be, has established reserves
adequate for payment in the event such Person is ultimately unsuccessful in such
contest or appeal and evidence thereof is provided to Lender.

            8.1.4 Cross Defaults. If an event of default occurs under any of the
Related Loans (as such term is defined in the Loan Agreement), which is not
cured within the grace or cure period, if any, therein provided.

      8.2 No Impairment of Rights. Nothing in this Section shall be deemed in
any way to alter or impair any right which Holder has under this Note or the
Mortgage, or any other document or instrument evidencing or securing the Loan
(collectively, the "LOAN DOCUMENTS") or at law or in equity, to accelerate such
debt on the occurrence of any other Event of Default provided herein or therein,
whether or not relating to this Note.

      8.3 Late Fees. Without limiting the generality of the foregoing provisions
of this Section, if any payment of interest or principal payable under this Note
is not made within ten (10) calendar days after the date on which such payment
becomes due and payable (including applicable grace periods), Borrower shall
thereupon automatically become obligated immediately to pay to Holder a late
payment charge, for each month during which a payment delinquency exists, equal
to the lesser of five percent (5%) of the amount of such payment or the maximum
amount permitted by applicable law ("LATE FEES") to defray the expenses incurred
by Holder in handling and processing such delinquent payment and to compensate
Holder for the loss of use of such delinquent payment.

      8.4 Intentionally Deleted.

      Section 9. Costs of Enforcement.

      Borrower shall pay to Holder on demand the amount of any and all expenses
incurred by Holder (a) in enforcing its rights hereunder or under the Mortgage
and/or the Loan Documents, (b) as the result of the occurrence of an Event of
Default by Borrower in performing its obligations under this Note, including but
not limited to the expense of collecting any amount owed hereunder, and of any
and all attorneys' fees incurred by Holder in connection with such default,
whether suit be brought or not, and (c) in protecting the security for the Loan
and Borrower's obligations under the Loan Documents. Such expenses shall be
added to the

                                       6
<PAGE>

principal amount hereof, shall be secured by the Mortgage and shall accrue
interest at the Default Rate.

      Section 10. Borrower's Waiver of Certain Rights.

      Borrower and any endorser, guarantor or surety hereby waives the exercise
of any and all exemption rights which it holds at law or in equity with respect
to the debt evidenced by this Note, and of any and all rights which it holds at
law or in equity to require any valuation, appraisal or marshalling, or to have
or receive any presentment, protest, demand and notice of dishonor, protest,
demand and nonpayment as a condition to Holder's exercise of any of its rights
under this Note or the Loan Documents.

      Section 11. Extensions.

      The Maturity Date and/or any other date by which any payment is required
to be made hereunder may be extended by Holder from time to time in the exercise
of its sole discretion, without in any way altering or impairing Borrower's or
Guarantor's liability hereunder.

      Section 12. General.

      12.1 Applicable Law. This Note shall be given effect and construed by
application of the laws of the State of Alabama (without regard to the
principles thereof governing conflicts of laws), and any action or proceeding
arising hereunder, and each of Holder and Borrower submits (and waives all
rights to object) to non-exclusive personal jurisdiction in the State of
Alabama, for the enforcement of any and all obligations under the Loan Documents
except that if any such action or proceeding arises under the Constitution, laws
or treaties of the United States of America, or if there is a diversity of
citizenship between the parties thereto, so that it is to be brought in a United
States District Court, it shall be brought in the United States District Court
for the Middle District of Alabama or any successor federal court having
original jurisdiction.

      12.2 Headings. The headings of the Sections, subsections, paragraphs and
subparagraphs hereof are provided herein for and only for convenience of
reference, and shall not be considered in construing their contents.

      12.3 Construction. As used herein, (a) the term "PERSON" means a natural
person, a trustee, a corporation, a limited liability company, a partnership and
any other form of legal entity, and (b) all references made (i) in the neuter,
masculine or feminine gender shall be deemed to have been made in all such
genders, (ii) in the singular or plural number shall be deemed to have been
made, respectively, in the plural or singular number as well, and (iii) to any
Section, subsection, paragraph or subparagraph shall, unless therein expressly
indicated to the contrary, be deemed to have been made to such Section,
subsection, paragraph or subparagraph of this Note.

      12.4 Severability. No determination by any court, governmental body or
otherwise that any provision of this Note or any amendment hereof is invalid or
unenforceable in any instance shall affect the validity or enforceability of (a)
any other such provision or (b) such provision in any circumstance not
controlled by such determination. Each such provision shall

                                       7
<PAGE>

be valid and enforceable to the fullest extent allowed by, and shall be
construed wherever possible as being consistent with, applicable law.

      12.5 No Waiver. Holder shall not be deemed to have waived the exercise of
any right which it holds hereunder unless such waiver is made expressly and in
writing. No delay or omission by Holder in exercising any such right (and no
allowance by Holder to Borrower of an opportunity to cure a default in
performing its obligations hereunder) shall be deemed a waiver of its future
exercise. No such waiver made as to any instance involving the exercise of any
such right shall be deemed a waiver as to any other such instance, or any other
such right. Further, acceptance by Holder of all or any portion of any sum
payable under, or partial performance of any covenant of, this Note, the
Mortgage or any of the other Loan Documents, whether before, on, or after the
due date of such payment or performance, shall not be a waiver of Holder's right
either to require prompt and full payment and performance when due of all other
sums payable or obligations due thereunder or hereunder or to exercise any of
Holder's rights and remedies hereunder or thereunder.

      12.6 Waiver of Jury Trial; Service of Process; Court Costs. BORROWER
HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH BORROWER AND
HOLDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY
PERTAINING TO, THIS NOTE AND/OR ANY OF THE OTHER LOAN DOCUMENTS. IT IS AGREED
AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL
CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWER, UPON CONSULTATION WITH COUNSEL OF
BORROWER'S CHOICE, AND BORROWER HEREBY REPRESENTS THAT NO REPRESENTATIONS OF
FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL
BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. BORROWER FURTHER
REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE
AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE
OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN
FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH
COUNSEL. BORROWER HEREBY IRREVOCABLY DESIGNATES NATIONAL REGISTERED AGENTS,
INC., AND HIS/HER SUCCESSORS IN OFFICE, AS THE TRUE AND LAWFUL ATTORNEY OF
BORROWER FOR THE PURPOSE OF RECEIVING SERVICE OF ALL LEGAL NOTICES AND PROCESS
ISSUED BY ANY COURT IN THE STATE OF ALABAMA AS WELL AS SERVICE OF ALL PLEADINGS
AND OTHER DOCUMENTS RELATED TO ANY LEGAL PROCEEDING OR ACTION ARISING OUT OF
THIS NOTE. BORROWER AGREES THAT SERVICE UPON SAID NATIONAL REGISTERED AGENTS,
INC. SHALL BE VALID REGARDLESS OF BORROWER'S WHEREABOUTS AT THE TIME OF SUCH
SERVICE AND REGARDLESS OF WHETHER BORROWER RECEIVES A COPY OF SUCH SERVICE,
PROVIDED THAT HOLDER SHALL HAVE MAILED A COPY TO BORROWER IN ACCORDANCE WITH THE
NOTICE PROVISIONS HEREIN. BORROWER AGREES TO PAY ALL COURT COSTS AND REASONABLE
ATTORNEY'S

                                       8
<PAGE>

FEES INCURRED BY HOLDER IN CONNECTION WITH ENFORCING ANY PROVISION OF THIS NOTE.
NOTWITHSTANDING THE FOREGOING, HOLDER AGREES TO USE REASONABLE EFFORTS TO
PROVIDE BORROWER WITH NOTICE OF THE FILING OF ANY LAWSUIT BY HOLDER AGAINST
BORROWER.

      12.7 Offset. Upon the occurrence of an Event of Default, Holder may
set-off against any principal and interest owing hereunder, any and all credits,
money, stocks, bonds or other security or property of any nature whatsoever on
deposit with, or held by, or in the possession of, Holder, to the credit of or
for the account of Borrower, without notice to or consent of Borrower or
Guarantor.

      12.8 Non-Exclusivity of Rights and Remedies. None of the rights and
remedies herein conferred upon or reserved to Holder is intended to be exclusive
of any other right or remedy contained herein or in any of the other Loan
Documents and each and every such right and remedy shall be cumulative and
concurrent, and may be enforced separately, successively or together, and may be
exercised from time to time as often as may be deemed necessary or desirable by
Holder.

      12.9 Incorporation by Reference. All of the agreements, conditions,
covenants and provisions contained in each of the Loan Documents are hereby made
a part of this Note to the same extent and with the same force and effect as if
they were fully set forth herein. Borrower covenants and agrees to keep and
perform, or cause to be kept and performed, all such agreements, conditions,
covenants and provisions strictly in accordance with their terms.

      12.10 Joint and Several Liability. If Borrower consists of more than one
person and/or entity, each such person and/or entity agrees that its liability
hereunder is joint and several.

      12.11 Business Purpose. Borrower represents and warrants that the Loan
evidenced by this Note is being obtained solely for the purpose of acquiring or
carrying on a business, professional or commercial activity and is not for
personal, agricultural, family or household purposes.

      12.12 Interest Limitation. Notwithstanding anything to the contrary
contained herein or in the Mortgage or in any other of the Loan Documents, the
effective rate of interest on the obligation evidenced by this Note shall not
exceed the lawful maximum rate of interest permitted to be paid. Without
limiting the generality of the foregoing, in the event that the interest charged
hereunder results in an effective rate of interest higher than that lawfully
permitted to be paid, then such charges shall be reduced by the sum sufficient
to result in an effective rate of interest permitted and any amount which would
exceed the highest lawful rate already received and held by Holder shall be
applied to a reduction of principal and not to the payment of interest. Borrower
agrees that for the purpose of determining highest rate permitted by law, any
non-principal payment (including, without limitation, Late Fees and other fees)
shall be deemed, to the extent permitted by law, to be an expense, fee or
premium rather than interest.

                                       9
<PAGE>

      12.13 Modification. This Note may be modified, amended, discharged or
waived only by an agreement in writing signed by the party against whom
enforcement of such modification, amendment, discharge or waiver is sought.

      12.14 Time of the Essence. Time is strictly of the essence of this Note.

      12.15 Negotiable Instrument. Borrower agrees that this Note shall be
deemed a negotiable instrument, even though this Note may not otherwise qualify,
under applicable law, absent this paragraph, as a negotiable instrument.

      12.16 Interest Rate After Judgment. If judgment is entered against
Borrower on this Note, the amount of the judgment entered (which may include
principal, interest, fees, Late Fees and costs) shall bear interest at the
Default Rate, to be determined on the date of the entry of the judgment.

      12.17 Relationship. Borrower and Holder intend that the relationship
between them shall be solely that of creditor and debtor. Nothing contained in
this Note or in any of the other Loan Documents shall be deemed or construed to
create a partnership, tenancy-in-common, joint tenancy, joint venture or
co-ownership by or between Borrower and Holder.

      12.18 Waiver of Automatic Stay. BORROWER HEREBY AGREES THAT, IN
CONSIDERATION OF LENDER'S AGREEMENT TO MAKE THE LOAN AND IN RECOGNITION THAT THE
FOLLOWING COVENANT IS A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN, IN THE
EVENT THAT BORROWER SHALL (A) FILE WITH ANY BANKRUPTCY COURT OF COMPETENT
JURISDICTION OR BE THE SUBJECT OF ANY PETITION UNDER ANY SECTION OR CHAPTER OF
TITLE 11 OF THE UNITED STATES CODE, AS AMENDED (THE "BANKRUPTCY CODE"), OR
SIMILAR LAW OR STATUTE; (B) BE THE SUBJECT OF ANY ORDER FOR RELIEF ISSUED UNDER
THE BANKRUPTCY CODE OR SIMILAR LAW OR STATUTE; (C) FILE OR BE THE SUBJECT OF ANY
PETITION SEEKING ANY REORGANIZATION, ARRANGEMENT, COMPOSITION, READJUSTMENT,
LIQUIDATION, DISSOLUTION, OR SIMILAR RELIEF UNDER ANY PRESENT OR FUTURE FEDERAL
OR STATE ACT OR LAW RELATING TO BANKRUPTCY, INSOLVENCY, OR OTHER RELIEF FOR
DEBTORS; (D) HAVE SOUGHT OR CONSENTED TO OR ACQUIESCED IN THE APPOINTMENT OF ANY
TRUSTEE, RECEIVER, CONSERVATOR, OR LIQUIDATOR; OR (E) BE THE SUBJECT OF AN
ORDER, JUDGMENT OR DECREE ENTERED BY ANY COURT OF COMPETENT JURISDICTION
APPROVING A PETITION FILED AGAINST ANY BORROWER FOR ANY REORGANIZATION,
ARRANGEMENT, COMPOSITION, READJUSTMENT, LIQUIDATION, DISSOLUTION, OR SIMILAR
RELIEF UNDER ANY PRESENT OR FUTURE FEDERAL OR STATE ACT OR LAW RELATING TO
BANKRUPTCY, INSOLVENCY OR RELIEF FOR DEBTORS, THEN, TO THE EXTENT PERMITTED BY
APPLICABLE LAW AND SUBJECT TO COURT APPROVAL, HOLDER SHALL THEREUPON BE
ENTITLED, AND BORROWER HEREBY IRREVOCABLY CONSENTS TO, AND WILL NOT CONTEST, AND
AGREES TO STIPULATE TO, RELIEF FROM ANY AUTOMATIC STAY OR OTHER INJUNCTION
IMPOSED BY SECTION 362 OF THE BANKRUPTCY CODE OR SIMILAR LAW OR STATUTE
(INCLUDING,

                                      10
<PAGE>

WITHOUT LIMITATION, RELIEF FROM ANY EXCLUSIVE PERIOD SET FORTH IN SECTION 1121
OF THE BANKRUPTCY CODE) OR OTHERWISE, ON OR AGAINST THE EXERCISE OF THE RIGHTS
AND REMEDIES OTHERWISE AVAILABLE TO HOLDER AS PROVIDED IN THE LOAN DOCUMENTS,
AND AS OTHERWISE PROVIDED BY LAW, AND BORROWER HEREBY IRREVOCABLY WAIVES ITS
RIGHTS TO OBJECT TO SUCH RELIEF.

                    [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

                                      11
<PAGE>

      IN WITNESS WHEREOF, Borrower has executed and sealed this Note or caused
it to be executed and sealed on its behalf by its duly authorized
representatives, the day and year first above written, and the obligations under
this Note shall be binding upon Borrower's successors and assigns.

                                          BORROWER:

                                          DIVERSICARE HARTFORD, LLC, a Delaware
                                          limited liability company

                                          /s/ Glynn Riddle
                                          -----------------------

                                          By: Glynn Riddle

                                          Its: Chief Financial Officer

ACKNOWLEDGED BY GUARANTOR THIS
28th DAY OF APRIL, 2005:

ADVOCAT INC., a Delaware corporation

/s/ Glynn Riddle
-----------------------------------

By: Glynn Riddle

Its: Chief Financial Officer

                                      12

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