Document:

<PAGE>

                                                                  EXHIBIT 10.34

                       FIRST AMENDMENT TO CREDIT AGREEMENT

         This First Amendment to Credit Agreement (the "First Amendment")
dated as of May 15, 1998, is made by LTC PROPERTIES, INC., a Maryland
corporation (the "Borrower"), the financial institutions party hereto
(together with their respective successors and permitted assigns, the
"Lenders"), BANQUE NATIONALE DE PARIS, Los Angeles Branch ("BNP"), as
Syndication Agent, THE SUMITOMO BANK, LIMITED, Chicago Branch ("Sumitomo"),
as Documentation Agent and SANWA BANK CALIFORNIA ("Sanwa"), as Administrative
Agent (in such capacity, the "Agent"). The parties hereto agree as follows:

                                    RECITALS

         WHEREAS, the Borrower, the Lenders and the Agent have heretofore
entered into that certain U.S. $170,000,000 Credit Agreement dated as of October
3, 1997 (the "Credit Agreement");

         WHEREAS, the Borrower has requested, among other things, amendments to
the Credit Agreement to enable it to capitalize a new company, LTC Healthcare,
Inc. ("LTC Healthcare"), and to distribute its equity investment in LTC
Healthcare to the Borrower's existing shareholders. (Capitalized terms used and
not otherwise defined herein shall have their respective meanings as set forth
in the Credit Agreement); and

         WHEREAS, the Lenders have agreed, upon the terms and conditions set
forth herein, to such amendments to the Credit Agreement and the related
documents.

         NOW, THEREFORE, in consideration of the foregoing, the Borrower, the
Lenders and the Agent hereby agree as follows:

         SECTION 1. Section 3.1(i) of the Credit Agreement shall be amended by
inserting the following sentence as the second sentence of such Section:

         "The calculation of such losses, costs or expenses shall be on the
basis of the difference between (a) the LIBOR Rate applicable to such LIBOR Loan
in effect prior to the event resulting in such losses, costs or expenses and (b)
the LIBOR Rate at the time the affected Lender suffers any such additional
losses, costs, or expenses as a result of actions by the Borrower."

         SECTION 2. Section 7.2 of the Credit Agreement shall be amended by
inserting a new subsection (iii) to read as follows after subsection (ii):

                                     -1-
<PAGE>

         "and (iii) to capitalize LTC Healthcare, Inc., in an aggregate amount
not to exceed $40,000,000, $20,000,000 of which shall be by an equity
contribution from the Borrower and $20,000,000 of which shall be by means of a
note payable to the Borrower bearing interest at a minimum of 9.5%."

         SECTION 3. Section 8.1 of the Credit Agreement shall be amended by
deleting the word "and" at the end of subsection (x), deleting the period at the
end of subsection (xi) and inserting "; and" in substitution therefor and
inserting a new subsection (xii) after subsection (xi) to read as follows:

         "(xii) Debt assumed or guaranteed by the Borrower relating to
outstanding bonds payable to the Oregon Department of Housing in an aggregate
principal amount not to exceed $4,210,000; provided that the terms of interest
and principal repayment thereon are not changed from those in effect as of May
1, 1998."

         SECTION 4. Section 8.3 of the Credit Agreement shall be amended by
deleting the proviso at the end of such Section and inserting in substitution
therefor the following:

         "; provided that the foregoing shall not be construed as prohibiting
(a) a transfer of assets from a Subsidiary to the Borrower, (b) the merger of a
Subsidiary into the Borrower or (c) a transfer of assets having an aggregate
fair market value not to exceed $20,000,000 by the Borrower to LTC Healthcare,
Inc."

         SECTION 5. The last sentence of Section 8.6 shall be deleted in its
entirety and the following shall be inserted in substitution therefor:

         "Notwithstanding the foregoing, the Borrower may (i) make capital
contributions to Significant Subsidiaries for the purpose of establishing such
Significant Subsidiaries and providing assets for such Significant Subsidiaries
to meet their respective obligations and (ii) capitalize LTC Healthcare, Inc. in
accordance with the provisions of Section 7.2(iii)."

         SECTION 6. Section 8.8 of the Credit Agreement shall be amended by
deleting the word "and" at the end of subsection (viii), deleting the period at
the end of subsection (ix) and inserting" and" in substitution therefor and
inserting a new subsection ix) after subsection (ix) to read as follows:

         "(x) Liens in existence as of May 1, 1998 on real estate, securing the
obligation to pay bonds assumed or guaranteed by the Borrower in an aggregate
principal amount not to exceed at any time $4,210,000."

         SECTION 7. Section 8.9 of the Credit Agreement shall be amended by
deleting the word "and" at the end of subsection (ii) and inserting a comma in
substitution therefor, deleting the

                                     -2-
<PAGE>

period at the end of subsection (iii) and inserting a comma in substitution
therefor and inserting the following two new subsections after subsection (iii)
to read as follows:

         ", (iv) the Borrower may guarantee payment of bonds payable to the
Oregon Department of Housing in an aggregate principal amount not to exceed
$4,210,000 and (v) the Borrower may make revolving loans to LTC Healthcare, Inc.
in an aggregate principal amount not to exceed $20,000,000."

         SECTION 8. Section 8.10 of the Credit Agreement shall be amended by
deleting the word "and" at the end of subsection (xii), deleting the period at
the end of subsection (xiii) and inserting "; and" in substitution therefor and
inserting a new subsection (xiv) after subsection (xiii) to read as follows:

         "(xiv) Investments by the Borrower in LTC Healthcare, Inc. not to
exceed at any time $40,000,000 in aggregate principal amount, which amount shall
be comprised only of (a) the loans made by the Borrower to LTC Healthcare, Inc.
pursuant to the provisions of Section 8.9(v) and (b) an Investment in an amount
not to exceed $20,000,000 which may only occur prior to the distribution
referenced in the last sentence of Section 8.11."

         SECTION 9. Section 8.11 of the Credit Agreement shall be amended by
inserting the following sentence at the end of such Section:

         "Notwithstanding the foregoing or any other provision of this
Agreement, the Borrower may distribute to its shareholders all of the Borrower's
equity interests in LTC Healthcare, Inc."

         SECTION 10. This First Amendment shall become effective upon the
execution and delivery of each of the following documents:

               (1)  This First Amendment;

               (2)  Certified Board Resolutions of the Borrower;

               (3)  Confirming Certificate of the Borrower re Articles of
                    Incorporation, Bylaws and Incumbency Certificate;

               (4)  Certificate of the Borrower re Representations and
                    Warranties and No Default;

               (5)  Guarantors' Consent (in form and substance satisfactory to
                    the Agent); and

               (6)  pro forma covenant compliance certificates (in form and
                    substance satisfactory to the Agent) taking into account the
                    acquisition of a ll2-unit assisted living facility in Oregon
                    and the

                                     -3-
<PAGE>

                    capitalization and distribution of LTC Healthcare, Inc.

         SECTION 11. This First Amendment may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

         SECTION 12. The Agent shall have received reimbursement of all costs
and expenses and payment of all fees incurred by the Agent in connection with
this First Amendment.

                                     -4-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first above written.

                                       LTC PROPERTIES, INC.

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       SANWA BANK CALIFORNIA, as
                                       Administrative Agent and Lender

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       BANQUE NATIONALE DE PARIS,
                                       Los Angeles Branch,
                                       as Syndication Agent and Lender

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       THE SUMITOMO BANK, LIMITED,
                                       Chicago Branch
                                       as Documentation Agent and Lender

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                     -5-
<PAGE>

                                       BANK OF MONTREAL,
                                       as Lender

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       WELLS FARGO BANK, N.A.

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       NATIONSBANK OF TEXAS, N.A.

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       BANK HAPOALIM B.M.

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       BHF-BANK AKTIENGESELLSCHAFT

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                     -6-
<PAGE>

                                       BANK LEUMI TRUST COMPANY OF NEW
                                       YORK

                                       By:
                                           ----------------------------
                                       Name:
                                            ---------------------------
                                       Title:
                                             --------------------------

                                     -7-<PAGE>

                                                                  EXHIBIT 10.35

                      SECOND AMENDMENT TO CREDIT AGREEMENT

        This Amendment, dated as of October 21, 1998, is entered into by LTC
PROPERTIES, INC., a Maryland corporation (the "BORROWER"), the financial
institutions party hereto (the "LENDERS"), BANQUE NATIONALE DE PARIS, acting
through its Los Angeles Branch, as Syndication Agent, and SANWA BANK
CALIFORNIA, as Administrative Agent (the "AGENT").

                                    RECITALS

        A. The parties hereto have entered into a Credit Agreement dated, as of
October 3, 1997, as amended by a First Amendment to Credit Agreement dated as of
May 15, 1998 (said Credit Agreement, as so amended, herein called the "CREDIT
AGREEMENT"). Terms defined in the Credit Agreement and not otherwise defined
herein have the same respective meanings when used herein, and the rules of
interpretation set forth in Section 1.2 of the Credit Agreement are incorporated
herein by reference.

        B. The Borrower, the Lenders and the Agent wish to amend the Credit
Agreement to, among other things, revise certain of the covenants contained
therein. Accordingly, the Borrower, the Lenders and the Agent hereby agree as
set forth below.

        SECTION 1. AMENDMENTS TO CREDIT AGREEMENT. Effective as of the date
first set forth above and subject to satisfaction of the conditions precedent
set forth in Section 2, the Credit Agreement is hereby amended as set forth
below.

                  (a) The definition of "Acquisition" in Section 1.1 of the
Credit Agreement is amended in full to read as follows:

                  "'Acquisition' means each transaction, or any series of
        related transactions, consummated on or after the date of this
        Agreement, by which the Borrower or any of its Subsidiaries (i) acquires
        any ongoing business or all or substantially all of the assets of any
        Person or division thereof, whether through the purchase of assets, by
        merger or otherwise, or (ii) directly or indirectly acquires (in one
        transaction or as the most recent transaction in a series of
        transactions) at least a majority (in number of votes) of the securities
        of a corporation which have ordinary voting power for the election of
        directors (other than securities having such power only by reason of the
        happening of a contingency) or a majority (by percent-

<PAGE>

         age of voting power) of the outstanding equity interests of a
         partnership or other Person."

                  (b) Section 8.5 of the Credit Agreement is amended by (i)
deleting the word "acquisition" wherever it appears in such section and
substituting the word "Acquisition" and (ii) amending subsection (i) of such
section by adding "(or the assets to be acquired)" between the words "acquired"
and "are."

                  (c) The portion of Section 8.10 of the Credit Agreement
preceding subsection (i) of such section is amended by (i) adding ", and will
not permit any Subsidiary to, have or" between the words "not" and "purchase"
and (ii) adding "have or" between the words "or" and "make."

                  (d) Section 8.10(vii) of the Credit Agreement is amended in
full to read as follows:

                  "(vii) subsequent to the Closing Date, the sum of (a) loans,
         advances to and investments in any Person or asset other than those
         loans, advances and investments already permitted in Section 8.10 and
         those Acquisitions already permitted in Section 8.5, (b) investments in
         stock, now owned or hereafter acquired, of publicly-traded companies
         (but not more than 10% of the stock of any single company), plus (c)
         loans or advances to limited partners (of partnerships of which the
         general partner is a Subsidiary of the Borrower) and limited
         partnerships (of which the general partner is a Subsidiary of the
         Borrower) for the purposes of funding the limited partners' tax
         obligations resulting from the sale of limited partnership facilities
         and paying previously agreed-upon Distributions to such limited
         partners, shall not exceed in aggregate principal amount at any time
         outstanding $20,000,000; and none of such investments, loans or
         advances shall be in any Person engaged in any educational related line
         of business."

                  (e) Section 8.10 of the Credit Agreement is amended by
deleting the word "and" at the end of subsection (xiii), deleting the period at
the end of subsection (xiv) and substituting "; and" therefor, and adding a new
subsection (xv) after subsection (xiv), to read as follows:

                  "(xv) any purchase of a fee interest in real property used
         primarily for education-related purposes, any loan secured by a
         mortgage, deed of trust or other instrument creating a first mortgage
         lien on a fee interest in real property used primarily for
         education-related purposes and any Investment in a Person engaged
         primarily in education-related business, provided that (1) such
         purchases and loans shall not exceed an

                                       -2-

<PAGE>

         aggregate of $20,000,000 in respect of a single property and (2) the
         aggregate amount of all such purchases, loans and Investments shall not
         exceed $75,000,000."

                  (f) Section 8.12(i) of the Credit Agreement is amended in full
to read as follows:

                  "(i) The Borrower shall not, and shall not permit any
         Subsidiary to, invest in or acquire any Owned Property or Mortgage Loan
         where a single Operator (excluding Affiliates) operates or leases more
         than 15% of the Total Investments of the Borrower and its Subsidiaries,
         except that the Borrower and its Subsidiaries may invest up to 45% of
         the Borrower's and its Subsidiaries' Total Investments in Sun
         Healthcare, Inc. and Assisted Living Concepts, Inc., provided that the
         maximum concentration to either of such Operators shall not exceed 25%
         of the Borrower's and its Subsidiaries' Total Investments."

                  (g) Article 7 of the Credit Agreement is amended by adding a
new Section 7.14 at the end thereof, to read as follows:

                  "7.14 YEAR 2000 COMPLIANCE. The Borrower shall, and shall
         cause each Subsidiary to, perform all acts reasonably necessary to
         ensure that the Borrower and its Subsidiaries become Year 2000
         Compliant in a timely manner. Such acts shall include performing a
         review and assessment of all of the Borrower's and its Subsidiaries
         material systems and adopting a plan with a budget for the remediation
         and testing of such systems. For the purposes hereof, "Year 2000
         Compliant" shall mean that all software, hardware, firmware, equipment,
         goods or systems utilized by and material to the business operations or
         financial condition of the Borrower or any Subsidiary will properly
         perform date-sensitive functions before, during and after the year
         2000. The Borrower shall, and shall cause each Subsidiary to, use
         efforts to remain informed as to whether its major customers, suppliers
         and vendors are Year 2000 Compliant. The Borrower shall, upon the
         Agent's reasonable request, provide the Agent with such certifications
         or other evidence of the Borrower's and its Subsidiaries' compliance
         with the terms hereof as the Agent may from time to time require."

         SECTION 2. CONDITIONS TO EFFECTIVENESS. This Amendment shall become
effective as of the date first set forth above when the Agent has received all
of the following documents, each dated on or before the date hereof, in form and
substance satisfactory to the Agent and in the number of originals requested by
the Agent:

                                       -3-

<PAGE>

                  (a) this Amendment, duly executed by the Borrower and the
Lenders;

                  (b) a consent to this Amendment, duly executed by the
Guarantors; and

                  (c) such other approvals, opinions, evidence and documents as
the Agent may reasonably request.

         SECTION 3. REPRESENTATIONS AND WARRANTIES OF BORROWER. The Borrower
represents and warrants to the Lenders as set forth below.

                  (a) The execution, delivery and performance by the Borrower of
this Amendment and the Loan Documents, as amended hereby, to which it is or is
to be a party are within the Borrower's corporate powers, have been duly
authorized by all necessary corporate action and do not (i) contravene the
Borrower's charter documents or bylaws, (ii) contravene any Governmental Rule or
contractual restriction binding on or affecting the Borrower or (iii) result in
or require the creation or imposition of any Lien or preferential arrangement of
any nature (other than any created by the Loan Documents) upon or with respect
to any of the properties now owned or hereafter acquired by the Borrower.

                  (b) No Governmental Approval is required for the due
execution, delivery or performance by the Borrower of this Amendment or any of
the Loan Documents, as amended hereby, to which the Borrower is or is to be a
party.

                  (c) This Amendment and each of the Loan Documents, as amended
hereby, to which the Borrower is a party constitute legal, valid and binding
obligations of the Borrower enforceable against the Borrower in accordance with
their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or
other similar laws affecting creditors' rights generally.

                  (d) There have been no amendments or other changes to the
charter documents, bylaws or incumbency certificate of the Borrower from the
forms thereof delivered to the Lenders in October of 1997. The representations
and warranties contained in the Loan Documents are true in all material respects
as though made on and as of the effective date of this Amendment. No event has
occurred and is continuing, or would result from the effectiveness of this
Amendment, that constitutes a Default.

         SECTION 4. REFERENCE TO AND EFFECT ON LOAN DOCUMENTS.

                  (a) On and after the effective date of this Amendment, each
reference in the Credit Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or any other expression of like

                                       -4-

<PAGE>

import referring to the Credit Agreement, and each reference in the other Loan
Documents to "the Credit Agreement," "thereunder," "thereof," "therein" or any
other expression of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement as amended by this Amendment.

                  (b) Except as specifically amended hereby, the Credit
Agreement and the other Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

                  (c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Lender or the Agent under any of the Loan
Documents or constitute a waiver of any provision of any of the Loan Documents.

         SECTION 5. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on
demand all costs and expenses of the Agent in connection with the preparation,
execution and delivery of this Amendment and the other instruments and documents
to be delivered hereunder, including the reasonable fees and out-of-pocket
expenses of counsel for the Agent with respect thereto and with respect to
advising the Agent as to its rights and responsibilities hereunder and
thereunder.

         SECTION 6. EXECUTION IN COUNTERPARTS. This Amendment may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute one and the same instrument.

         SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF CALIFORNIA.

                               LTC PROPERTIES, INC.

                               By:    /s/ Darrell D. Struck
                                      -------------------------
                               Name:  Darrell D. Struck
                                      -------------------------
                               Title: VP & Treasurer
                                      -------------------------

                               SANWA BANK CALIFORNIA,
                               as Administrative Agent and Lender

                               By:    /s/ Dirk A. Price
                                      -------------------------
                               Name:  Dirk A. Price
                                      -------------------------
                               Title: Vice President
                                      -------------------------

                                       -5-

<PAGE>

                               BANQUE NATIONALE DE PARIS,
                               Los Angeles Branch,
                               as Syndication Agent and Lender

                               By:    /s/ Clive Bettles
                                      -------------------------
                               Name:  Clive Bettles
                                      -------------------------
                               Title: Senior Vice President & Manager
                                      -------------------------

                               By:    /s/ Debbie Gohh
                                      -------------------------
                               Name:  Debbie Gohh
                                      -------------------------
                               Title: Vice President
                                      -------------------------

                               BANK OF MONTREAL

                               By:    /s/ Kanu Modi
                                      -------------------------
                               Name:  Kanu Modi
                                      -------------------------
                               Title: Director
                                      -------------------------

                               KEY CORPORATE CAPITAL INC.

                               By:    /s/ John E. Boulder
                                      -------------------------
                               Name:  John E. Boulder
                                      -------------------------
                               Title: Vice President
                                      -------------------------

                               WELLS FARGO BANK, N.A.

                               By:
                                      -------------------------
                               Name:
                                      -------------------------
                               Title:
                                      -------------------------

                               NATIONSBANK, N.A.

                               By:    /s/ Brad W. DeSpain
                                      -------------------------
                               Name:  Brad W. DeSpain
                                      -------------------------
                               Title: Senior Vice President
                                      -------------------------

                                       -6-

<PAGE>

                               BANK HAPOALIM B.M.

                               By:    /s/ Paul Watson
                                      -------------------------
                               Name:  Paul Watson
                                      -------------------------
                               Title: Vice President
                                      -------------------------

                               By:    /s/ John A. Rice
                                      -------------------------
                               Name:  John A. Rice
                                      -------------------------
                               Title: Vice President and Senior Lending
                                        Officer
                                      -------------------------

                               BHF-BANK AKTIENGESELLSCHAFT

                               By:
                                      -------------------------
                               Name
                                      -------------------------
                               Title:
                                      -------------------------

                               By:
                                      -------------------------
                               Name:
                                      -------------------------
                               Title :
                                      -------------------------

                               BANK LEUMI TRUST COMPANY OF NEW YORK

                               By:    /s/ Gloria Bucher
                                      -------------------------
                               Name:  Gloria Bucher
                                      -------------------------
                               Title: First Vice President
                                      -------------------------

                                       -7-

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