Document:

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                                                                   EXHIBIT 10.11

                        FIFTH AMENDMENT TO LOAN AGREEMENT

         This Fifth Amendment to Loan Agreement is made as of July 1, 2003, by
and between DIVERSICARE ASSISTED LIVING SERVICES NC I, LLC, a Delaware limited
liability company (together with its successors and assigns, the "Borrower"),
and GMAC COMMERCIAL MORTGAGE CORPORATION, a California corporation (together
with its successors and assigns, the "Lender").

                                    RECITALS:

         A. Borrower and the Lender entered that certain Loan Agreement dated
June 4, 1999, as amended by that certain First Amendment to Loan Agreement dated
as of July 1, 2002, as amended by that certain Second Amendment to Loan
Agreement dated as of October 1, 2002, as amended by that certain Third
Amendment to Loan Agreement dated as of January 1, 2003, and as further amended
by that certain Fourth Amendment to Loan Agreement dated as of June 18, 2003
(the "Agreement"). Unless otherwise defined in this Fifth Amendment, capitalized
terms shall have the meaning given to them in the Agreement.

         B. The Borrower and the Lender desire to amend the Agreement and have
agreed to execute this Fifth Amendment to evidence such modification.

                                    AGREEMENT

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

         1. Paragraph 1.1, "Maturity Date" is hereby amended by changing the
date to "June 30, 2004".

         2. Article I, "Definitions", is hereby amended by adding the following
definitions:

         "Cross-Collateralization and Cross-Default Agreement" shall mean that
certain Cross-Collateralization and Cross-Default Agreement dated as of June 18,
2003, by and Borrower, Afton Oaks, NC II, Pinedale, Windsor House and Lender.

         "Afton Oaks" shall mean Diversicare Afton Oaks, LLC.

         "Afton Oaks Facility" shall mean the facility known as "Afton Oaks
Nursing Center," presently a 169-licensed bed (162 available) skilled nursing
facility located on the Afton Oaks Property, as it may now or hereafter exist,
together with any other general or specialized

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care facilities, if any (including any Alzheimer's care unit, subacute, and any
facility), now or hereafter operated on the Afton Oaks Property.

         "Afton Oaks Loan" means the loan in the principal sum of $3,750,000
made by Lender to Afton Oaks.

         "Afton Oaks Mortgage" means that certain Mortgage and Security
Agreement from Afton Oaks in favor of or for the benefit of Lender and covering
the Afton Oaks Property.

         "Afton Oaks Property" means the real estate located in Houston, Harris
County, Texas, which is more particularly described in Exhibit "A" to the Afton
Oaks Mortgage.

         "Collective Borrowers" means, collectively, the Borrower, Afton Oaks,
NC II, Pinedale and Windsor House.

         "Collective Facilities" means, collectively, the Facilities, Afton Oaks
Facility, the NC II Facilities, the Pinedale Facility and the Windsor House
Facility.

         "Collective Loans" means, collectively, the Loan, the Afton Oaks Loan,
the NC II Loan, the Pinedale Loan and the Windsor House Loan.

         "Collective Mortgage" means, collectively, the Mortgage, the Afton Oaks
Mortgage, the NC II Mortgage, the Pinedale Mortgage and the Windsor House
Mortgage.

         "Collective Properties" means, collectively, the Property, the Afton
Oaks Property, the NC II Properties, the Pinedale Property and the Windsor House
Property.

         "NC II" means Diversicare Assisted Living Services NC II, LLC.

         "NC II Facilities" shall mean the seven (7) adult care facilities
located on the NC II Properties described on Schedule A to the NC II Mortgages,
as they may now or hereafter exist, together with any other general or
specialized care facilities, if any (including any Alzheimer's care unit,
subacute, and any skilled care facilities), now or hereafter operated on the NC
II Properties.

         "NC II Loan" means the loan in the principal sum of $12,480,000 made by
Lender to NC II.

         "NC II Mortgage" means collectively those certain Deeds of Trust and
Security Agreements from NC II in favor of or for the benefit of Lender and
covering the NC II Properties.

         "NC II Properties" means the real estate located in North Carolina,
which are more particularly described in Exhibit "A" to the NC II Mortgages.

         "Pinedale" shall mean Diversicare Pinedale, LLC.

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         "Pinedale Facility" shall mean the facility known as "Pinedale Nursing
and Rehabilitation Center," presently a 130-bed licensed skilled nursing
facility located on the Pinedale Property, as it may now or hereafter exist,
together with any other general or specialized care facilities, if any
(including any Alzheimer's care unit, subacute, and any facility), now or
hereafter operated on the Pinedale Property.

         "Pinedale Loan" means the loan in the principal sum of $2,913,000 made
by Lender to Pinedale.

         "Pinedale Mortgage" means that certain Mortgage and Security Agreement
from Pinedale in favor of or for the benefit of Lender and covering the Pinedale
Property.

         "Pinedale Property" means the real estate located in Newport, Jackson
County, Arkansas, which is more particularly described in Exhibit "A" to the
Pinedale Mortgage.

         "Windsor House" shall mean Diversicare Windsor House, LLC.

         "Windsor House Facility" shall mean the facility known as "Windsor
House," presently a 134-bed licensed facility (117-bed licensed skilled nursing,
17-bed licensed assisted living) located on the Windsor House Property, as it
may now or hereafter exist, together with any other general or specialized care
facilities, if any (including any Alzheimer's care unit, subacute, and any
facility), now or hereafter operated on the Windsor House Property.

         "Windsor House Loan" means the loan in the principal sum of $4,709,000
made by Lender to Windsor House.

         "Windsor House Mortgage" means that certain Mortgage and Security
Agreement from Afton Oaks in favor of or for the benefit of Lender and covering
the Windsor House Property.

         "Windsor House Property" means the real estate located in Huntsville,
Madison County, Alabama, which is more particularly described in Exhibit "A" to
the Windsor House Mortgage.

         3. Paragraph 4.12(a), "Debt Service Coverage Requirements", is hereby
amended by deleting subsections (i), (ii) and (iii) in their entirety and
replacing them with the following:

         (i) commencing with the quarter ending June 30, 2003, a Debt Service
Coverage for the Facilities, in the aggregate, after deduction of Assumed
Management Fees, of not less than 1.0 to 1.0, to be tested quarterly based on
the operation of the Facilities for the prior twelve (12) months.

         (ii) commencing with the quarter ending June 30, 2003, a Debt Service
Coverage for the Facilities, in the aggregate, after deduction of Actual
Management Fees, of not

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less than 1.0 to 1.0, to be tested quarterly based on the operation of the
Facilities for the prior twelve (12) months; and

         (iii) commencing with the quarter ending June 30, 2003, a Debt Service
Coverage for the Collective Facilities, combined, after deduction of Assumed
Management Fees, of not less than 1.15 to 1.0, to be tested quarterly based on
the combined operations of the Collective Facilities for the prior twelve (12)
months.

         4. A new Paragraph 2.4, "Release of Collective Facilities", is hereby
added as follows:

                  2.4 Release of Collective Facilities.

                  (a) In the event of a refinancing of a Collective Loan or sale
of any one of the Collective Facilities to a third party unrelated to Borrower
or Guarantor, and so long as no Default or Event of Default has occurred and is
continuing, or will occur as a result of a requested release, any one of the
Collective Facilities may be released from the lien and security interest of the
Cross-Collateralization and Cross-Default Agreement if, after giving effect to
such release, the Collective Facilities remaining subject to the
Cross-Collateralization and Cross-Default Agreement would have a combined Debt
Service Coverage equal to 1.15 to 1.0 for the 12-month testing period
immediately preceding such proposed release, after an Assumed Management Fee.
Additionally, the release of the Afton Oaks Facility, the Pinedale Facility and
the Windsor House Facility shall require payment in full of their respective
Loan.

                  (b) In the event of a sale of all of the Facilities or all of
the NC II Facilities to a third party unrelated to the Borrower or to Guarantor,
so long as no Default or Event of Default has occurred and is continuing, or
will occur as a result of a requested release, except for the bankruptcy of
Advocat, all of the Facilities or all of the NC II Facilities may nevertheless
be released from the lien and security interest of the Cross-Collateralization
and Cross-Default Agreement upon fulfillment of the following conditions: (i)
subject to the determination, review and approval by Lender in its sole
discretion, the difference in the amount to pay in full the Loan or the NCII
Loan, as the case may be, and the net sales proceeds to be paid pursuant to the
sale (the "Deficiency") is reallocated among the remaining outstanding
Collective Loans; (ii) after giving effect to such release, the Collective
Facilities remaining subject to the Cross-Collateralization and Cross-Default
Agreement would have a combined Debt Service Coverage equal to 1.15 to 1.0 for
the 12-month testing period immediately preceding such proposed release, after
an Assumed Management Fee based upon a reamortization of the Collective Loans on
a twenty-five (25) year basis, and (iii) the Collective Borrowers and Guarantors
execute such documents as Lender deems necessary to evidence and secure such
reallocation of the Deficiency.

                  (c) In the event the Borrower requests a release of a Facility
or a NCII Facility (as opposed to all Facilities or all NCII Facilities, as
contemplated in 2.4(b) above), the test required in Section 2.4(a) above shall
be applicable, as will the release condition contained in Section 2.3 of the
Agreement; provided, however, the test in Section 2.3 is hereby amended for
releases related to a sale of a Facility or an NC II Facility to a third party
unrelated to the

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Borrower or the Guarantor, or in the event of the damage, destruction or
condemnation of a Facility or an NC II Facility, by deleting the phrase "the
greater of (a) 1.25 to 1.0 or (b) ", resulting in a release test in Section 2.3
of a combined Debt Service Coverage equal to the Debt Service Coverage for all
Facilities (including the to-be-released Facility) for the 12-month testing
period immediately preceding such proposed release. For purposes of a refinance
of a Facility or an NC II Facility, the test in Section 2.3 shall remain
unchanged, without the deletion referenced above.

                  (d) Any release pursuant to Sections 2.3, 2.4 (b) and 2.4 (c)
shall be conditioned upon Lender's receipt of all net proceeds from the sale,
refinance or damage, destruction or condemnation giving rise to the release
provisions.

         5. Forbearance.

                  Provided no  additional  Event of Default  occurs and
provided that the Borrower is in compliance with the Debt Service Coverage
Requirements set forth in Paragraph 4.12, as amended herein, the Lender hereby
agrees to forbear from exercising any of its rights and remedies against the
Borrower and the Guarantors for a violation of Paragraph 4.13 of the Agreement
relating to certain occupancy requirements for the Facilities. This forbearance
shall only be in connection with the Borrower's non-compliance with Lender's
occupancy requirements set forth in Paragraph 4.13 of the Agreement and shall
not apply to any other provision of the Agreement.

                  Except as expressly amended hereby, the Agreement shall remain
in full force and effect in accordance with its terms.

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         IN WITNESS WHEREOF, the Borrower and the Lender have caused this Fifth
Amendment to be properly executed by their respective duly authorized officers
as of the date first above written.

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

                                      By: Diversicare Assisted Living Services
                                      NC, LLC
                                      Its: Sole Member

                                               By: /s/ William R. Council, III
                                                   -----------------------------
                                               Name: William R. Council, III
                                               Title: Chief Executive Officer

                                      GMAC COMMERCIAL MORTGAGE
                                      CORPORATION

                                      By   /s/ Laura Y. McDonald
                                           ------------------------------
                                      Its: Senior Vice President
                                           ------------------------------

                                       6<PAGE>
                                                                   Exhibit 10.12

                         OFFER TO PURCHASE AND CONTRACT

Ronald F. McManus, as Buyer, hereby offers to purchase and Diversicare Assisted
Living Services NC, LLC, as Seller, upon acceptance of said offer, agrees to
sell and convey, all of that plot, piece or parcel of land described below,
together with all improvements located thereon and such fixtures and personal
property as are listed below (collectively referred to as "the Property"), upon
the following terms and conditions:

1. REAL PROPERTY: Located in Morehead City, County of Carteret, State of North
Carolina, being known as and more particularly described as:
Street Address: NWC Guardian Ave and Symi Circle         Zip:
                                                             ------------------
Legal Description:-------------------------------------------------------------
([X] All [ ] A portion   of the property in Deed Reference: Book---------------,
Page No.----------, ----------------------------------------- County.)
NOTE: Prior to signing the Offer to Purchase and Contract, Buyer is advised to
review Restrictive Covenants, if any, which may limit the use of the Property,
and to read the Declaration of Restrictive Convenants, By-Laws, Articles of
Incorporation, Rules and Regulations, and other governing documents of the
owners' association and/or the subdivision, if applicable.

2. FIXTURES: The following items, if any, are included in the purchase price
free of liens: any built-in appliances, light fixtures, ceiling fans, attached
floor coverings, blinds and shades including window hardware, window and door
screens, storm windows, combination doors, awnings, antennas, satellite dishes
and receivers, burglar/fire/smoke alarms, pool and spa equipment, solar energy
systems, attached fireplace screens, gas logs, fireplace inserts, electric
garage door openers with controls, outdoor plants and trees (other than in
movable containers), basketball goals, storage sheds, mailboxes, wall and/or
door mirrors, and any items attached or affixed to the Property, EXCEPT the
following items:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

3. PERSONAL PROPERTY: The following personal property is included in the
purchase price: None.

Int:     4. PURCHASE PRICE: The purchase price is $ 180,000.00 and shall be
             paid as follows:

[ILLEGIBLE] (a) $ 5,000, EARNEST MONEY DEPOSIT by [ ] cash [X] personal
             check [ ] bank check [ ] certified check [ ]
[ILLEGIBLE]  other--------------------------------------------- to be deposited
             and held in escrow by Seller, until the sale is closed, at which
             time it will be credited to Buyer, or until this contract is
             otherwise terminated. In the event: (1) this offer is not accepted;
             or (2) any of the conditions hereto are not satisfied, then all
             earnest monies shall be returned to Buyer. In the event of breach
             of this contract by Seller, upon Buyer's request, all earnest
             monies shall be returned to Buyer, but such return shall not affect
             any other remedies available to Buyer for such breach. In the event
             this offer is accepted and Buyer breaches this contract, then all
             earnest monies shall be forfeited upon Seller's request, but
             receipt of such forfeited earnest monies shall not affect any
             other remedies available to seller for such breach.

NOTE: in the event of a dispute between Seller and Buyer over the return or
forfeiture of earnest money held in escrow by a broker, the broker is required
by state law to retain said earnest money in the broker's trust or escrow
account until a written release from the parties consenting to its disposition
has been obtained or until disbursement is ordered by a court of competent
jurisdiction.

(b) $-----------, ADDITIONAL EARNEST MONEY DEPOSIT to be paid to escrow
                  agent no later than --------------------.

(c) $-----------  BY ASSUMPTION of the unpaid principal balance and all
                  obligations of Seller on the existing loan(s) secured by a
                  deed of trust on the Property in accordance with the attached
                  Loan Assumption Addendum.

(d) $-----------, BY SELLER FINANCING in accordance with the attached Seller
                  Financing Addendum.

(e) $ 175,000,    BALANCE of the purchase price in cash at closing.

5. CONDITIONS: (State N/A in each blank that is not a condition to this
contract.)
(a) The Buyer must be able to obtain a loan commitment on or before N/A,
effective through the date of closing, for a [ ] FHA [ ] VA (attach FHA/VA
Financing Addendum) [X] Conventional [ ] Other---------- loan at a [ ] Fixed
Rate [ ] Adjustable Rate [ ] Other: N/A in the principal amount of $ N/A for a
term of      year(s), at an interest rate not to exceed      % per annum, with
       ------                                          ------
mortgage loan discount points not to exceed      % of the loan amount. Buyer
                                           ------
agrees to use his best efforts to secure such commitment. Buyer shall be
responsible for all costs with respect to any loan obtained by Buyer, except if
Seller is to pay any of the Buyer's loan closing costs including discount
points, those costs are as follows:-------------------------------------------.

In the event Buyer fails to provide Seller with written evidence of the loan
commitment within five days after receipt of a written request from Seller (but
such request may not be made before the loan commitment date listed above),
then Seller may terminate this contract unless Buyer waives the loan commitment
condition.
(b) There must be no restriction, easement, zoning or other governmental
regulation that would prevent the reasonable use of the real property for
Assisted Living and/or Apartments purposes.
(c) The Property must be in substantially the same or better condition at
closing as on the date of this offer, reasonable wear and tear excepted.
(d) All deeds of trust, liens and other charges against the Property, not
assumed by Buyer, must be paid and satisfied by Seller prior to or at closing
such that cancellation may be promptly obtained following closing. Seller shall
remain obligated to obtain any such cancellations following closing.
(e) Title must be delivered at closing by SPECIAL WARRANTY DEED unless
otherwise stated herein, and must be fee simple marketable title, free of all
encumbrances except: ad valorem taxes for the current year (prorated through
the date of closing); utility easements and unviolated restrictive covenants
that do not materially affect the value of the Property; and such other
encumbrances as may be assumed or specifically approved by Buyer. The Property
must have legal access to a public right of way. Int: [ILLEGIBLE] [ILLEGIBLE]

6. SPECIAL ASSESSMENTS: Seller warrants that there are no governmental special
assessments, either pending or confirmed, for sidewalk, paving, water, sewer,
or other improvements on or adjoining the Property, and no owners' association
special assessments, except as follows: None, to Seller's knowledge.
(Insert "None" or the identification of such assessments, if any.) Seller shall
pay all confirmed owners' association assessments and all confirmed
governmental assessments, if any, and Buyer shall take title subject to all
pending assessments, if any, unless otherwise agreed as follows:

-------------------------------------------------------------------------------.

7. PRORATIONS AND ADJUSTMENTS: Unless otherwise provided, the following items
shall be prorated and either adjusted between the parties or paid at closing:
(a) Ad valorem taxes on real property shall be prorated on a calendar year
basis through the date of closing; (b) Ad valorem taxes on personal property
for the entire year shall be paid by the Seller unless the personal property is
conveyed to the Buyer, in which case, the personal property taxes shall be
prorated on a calendar year basis through the date of closing. (c) All late
listing penalties, if any, shall be paid by Seller. (d) Rents, if any, for the
Property shall be prorated through the date of closing. (e) Owners' association
dues and other like charges shall be prorated through the date of closing.
Seller represents that the regular owners' association dues, if any, are $ N/A
                                                                         -------
per -------.

Int:         8. CLOSING EXPENSES: Seller shall pay for preparation of a deed and
             all other documents necessary to perform Seller's obligations under
[ILLEGIBLE]  this agreement. Buyer shall pay for recording the deed, for excise
             tax (revenue stamps required by law) and for preparation and
[ILLEGIBLE]  recording of all instruments required to secure the balance of the
             purchase price unpaid at closing.

             9. FUEL: Buyer agrees to purchase from Seller the fuel, if any,
             situated in any tank on the Property at the prevailing rate with
             the cost of measurement thereof, if any, being paid by Seller.

             10. EVIDENCE OF TITLE: Seller agrees to use his best efforts to
             deliver to Buyer as soon as reasonably possible after the
             acceptance of this offer, copies of all title information in
             possession of or available to Seller, including but not limited to:
             title insurance policies, attorney's opinions on title, surveys,
             covenants, deeds, notes and deeds of trust and easements relating
             to the Property.

Int:         11. LABOR AND MATERIAL: Seller shall furnish at closing an
             affidavit and indemnification agreement in form satisfactory to
[ILLEGIBLE]  title company showing that all labor and materials, if any,
             furnished to the Property within 120 days prior to the date of
[ILLEGIBLE]  closing have been paid for and agreeing to indemnify title company
             against all loss from any cause or claim arising therefrom.

NC Bar Association Form No. L-2, (c)1996.                           (SOFTPRO
                                                                    CORPORATION
          This Standard Form has been approved jointly by the:      LOGO)
          NORTH CAROLINA BAR ASSOCIATION--NC Bar Form No. L-2
          NORTH CAROLINA ASSOCIATION OF REALTORS(r), INC.--STANDARD FORM NO. 1-8
                                                                    (ILLEGIBLE)

<PAGE>

     IN WITNESS WHEREOF the parties have executed this Addendum as of the date
last signed by the parties as set forth beneath their signatures below.

                                        Buyer: /s/ Ronald F. McManus
                                              --------------------------------
                                                   Ronald F. McManus

                                        Date: 3/18/03
                                             ---------------------------------

                                        Seller: Diversicare Assisted Living
                                                  Services, NC, LLC

                                        By: /s/ Glynn Riddle
                                           -----------------------------------

                                        Its: VP & Chief Financial Officer
                                            ----------------------------------

                                        Date: 3-14-2003
                                             ---------------------------------

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