Effective February 25, 2020, Diversicare Healthcare Services, Inc. entered into a Sixth Amendment to its Second Amended and Restated Term Loan and Security Agreement (the “Amended Mortgage Loan”), an Eighth Amendment to its Third Amended and Restated Revolving Loan and Security Agreement (the “Amended Revolver”) and a First Amendment to its Revolving Loan and Security Agreement. The amendments extend the maturity date of each of the loan agreements to September 30, 2021. Also, in connection with these amendments, the Company obtained from its syndicate of banks a waiver of the minimum fixed charge coverage ratio covenant applicable to the Amended Mortgage Loan and the Amended Revolver for the period ending December 31, 2019 and made certain changes to the financial covenants of these loan agreements, as follows. Pursuant to the amendments, the company’s Fixed Charge Coverage Ratio, as defined under the Amended Mortgage Loan and the Amended Revolver, should not be less than 1.01 to 1.00, for the fiscal quarter ending March 31, 2020, measured on the last day of the applicable fiscal quarter on a trailing three month basis, ending June 30, 2020, measured on the last day of the applicable fiscal quarter on a trailing six month basis, ending September 30, 2020, measured on the last day of the applicable fiscal quarter on a trailing nine month basis, and ending December 31, 2020 and for each fiscal quarter thereafter, each measured on the last day of the applicable fiscal quarter on a trailing twelve month basis. Additionally, the amendments provide that the Company’s Adjusted EBITDA, as defined under the Amended Revolver, should not be less than $9,500,000 for the fiscal quarter ending December 31, 2019 on a trailing twelve month basis, $3,250,000 for the fiscal quarter ending March 31, 2020, measured on the last day of the applicable fiscal quarter on a trailing three month basis, $6,500,000 for the fiscal quarter ending June 30, 2020, measured on the last day of the applicable fiscal quarter on a trailing six month basis, $9,750,000 for the fiscal quarter ending September 30, 2020, measured on the last day of the applicable fiscal quarter on a trailing nine month basis, and $13,000,000 for the fiscal quarter ending December 31, 2020 and for each fiscal quarter thereafter, each measured on the last day of the applicable fiscal quarter on a trailing twelve month basis.